Annual Report & Financial Statements

2010-2011

You can count on us.

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* You can count them if you like. But theres really no need, we do it for a living.

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Index
Table of Contents ______________________________________________________________ 3 Notice of Meeting _____________________________________________________________ 4

Board of Directors 2010-2011 ___________________________________________________ 5

Presidents Report Mr Rob Yeomans ___________________________________________ 6

Hon. Treasurers Report Mr John Engisch _______________________________________ 8

Financial Report 2010-2011 ____________________________________________________ 9

Board of Directors Report _______________________________________________________ 10

Income Statement _____________________________________________________________ 11-13

Balance Sheet _________________________________________________________________ 14

Notes to the Financial Statement ________________________________________________ 15-19

Statement by Members of the Board of Directors __________________________________ 20

Independent Auditors Report ___________________________________________________ 21-22

Certificate by Members of the Board of Directors __________________________________ 23

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Annual General Meeting

NOTICE OF MEETING
We hereby give notice that the Annual General Meeting of the CAB will take place at 11.00am on Thursday October 6, 2011 at the Piato Restaurant, 123 Blues Point Road, North Sydney.

Business of Annual General Meeting:

To receive and consider a report of the proceedings of the CAB for the past year and the financial statements, duly audited. To transact any and all business which may be transacted at the Annual General Meeting of the CAB in accordance with the CABs Rules. Members who wish to raise any business for discussion and/or determination at the Annual General Meeting must submit details in writing to the Chief Executive Officer at least seven (7) days prior to the date of the Annual General Meeting.

Rule 67.2 - Proxies: A Full Member entitled to attend and vote at a Meeting of Members may appoint any other Full Member as their proxy to attend and vote at that meeting instead of the absent Full Member.

Rule 68.2 - A quorum for a Meeting of Members: is Thirteen (13) Financial Full Members present in person; or Fifty Financial Full Members present in person or by proxy, Seven (7) of whom must be present in person; and must include at least one Financial Full Member present in person from each Membership Group.

CIRCULATIONS AUDIT BOARD Paul Dovas Chief Executive Officer

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Board of Directors 2010-2011

PRESIDENT: Rob Yeomans, Managing Director, Rank Publishing Co Pty Ltd VICE PRESIDENT: Adrian Farrow, Director, Westwick-Farrow Media HON. TREASURER: John Engisch, Managing Director, Torch Publishing Company Pty Ltd BOARD MEMBERS: John Lewis, Senior Manager-Marketing, Insurance Australia Group Scott McClellan, Chief Executive Officer, Australian Association of National Advertisers Carol Morris, Executive Officer, Media Federation of Australia Christopher OKeefe, CEO, Initative Perth Matthew Pearce, Managing Director, Diversified Exhibitions Australia Angela Raso, Business Manager, The Exchange, Mindshare Pty Ltd Harley Slatter, Managing Director, Slatter & Partners Communications Michael Tate, Marketing Manager, Leading Edge Telecoms Catherine Woodside, Circulation Director, News Limited AUDITORS James Mathers & Co. 27 Bydown Street, Neutral Bay NSW 2089 CAB STAFF: Paul Dovas Heather Craven Alexx Cass Margaret Crichton Helen Dai Claire Dollard Arry Kusnadi Jill Park Sue Pemberton Lisa Thomas Fabien Thoumazeau

Chief Executive Officer Director of Marketing & Communications Digital Services Manager Business Development Manager Audit & Database Officer Marketing Officer Manager, Media Audit Division Communications Officer Office & Accounts Manager Auditor Compliance Manager

The Circulations Audit Board adheres to the internationally accepted principle of tripartite membership.

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Presidents Report
Mr Rob Yeomans

Each year the CAB moves forward with positive programmes to assist the

membership, and the past year has been no exception with many firsts such as the first auditor accreditation programme, first business development manager appointed and more recently the first CAB conference. The CAB has been extremely busy working to ensure it meets the demands of the expanding facets of media.

Our inaugural conference Accountability in Ad Spend, held at the Sydney Hilton in July, addressed the changing needs of media providers and media suppliers alike. Wed like to thank all those who attended and supported the event in its inaugural year and look forward to continuing the discussion in 2012. The CAB has continued its investment in people in 2011. In May 2011 we welcomed Margaret Crichton to the CAB team. She joins the organisation from her role as general manager at the Exhibition & Event Association of Australasia (EEAA) with her initial focus on the CAB's Exhibition audit services. Expect more details of the updated service shortly. CABs web audit service has also continued to grow over the past year. In the two years since its launch, digital services manager Alexx Cass has grown the membership to 255 sites and tackled the issue of auto-refresh head on, with the Green Tick campaign. We also launched a marketing programme aimed directly at agencies and advertisers. The results of this are starting to come in and it appears that the ads: are effective in creating awareness of the CAB. This programme will be continuing over the second half of the year. For the 2010-2011 financial year the CAB has reported a profit after tax of $75,419 attributed largely to the uptake of our audit services. The CAB Boards continued investment in new services alongside the traditional print audits has helped ensure the financial security of the organisation as the global financial crisis continues to reverberate around the world. The Board would like to recognise the work of the CAB secretariat in its continued hard work to deliver positive financial results in what has been an extremely busy year for the organisation. The end of this financial year will mark the end of my time as CAB president. After 20 years on the Board and 10 years as President, I am stepping down and embracing retirement. I would like to thank all of the Board members past and present who have made my time with the CAB so enjoyable. I would particularly like to thank my Vice President Adrian Farrow who will also be stepping down this year. Adrian joined the Board in 2000 and has been an integral member ever since. He steps down following the sale of his company Westwick-Farrow Media to Universal Magazines. Treasurer John Engisch will also be stepping down from his position on the Board. John has steered the finances of the CAB with great success over the past year and his hard work has contributed to the continued financial success of the organisation.

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Presidents Report continued

Finally, I would like to thank the Board for their ongoing support and participation at meetings, in subcommittees and work with the CAB secretariat. I have no doubt that they will continue to drive the organisation forward into 2012 and beyond. I look forward to watching the continued good work of the CAB in 2012.

Rob Yeomans CAB President

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Treasurers Report
Mr John Engisch
s the President has mentioned, we finished the year with a profit after tax of $75,419, compared with a budgeted surplus of $28,796. This major turn around was due in no small part to the diligent efforts and day to day financial management by the Secretariat. A key factor impacting the result was further growth in member audits. This growth has allowed the CAB Board to release additional marketing expenditure of $100,000 to fund a marketing programme, which included initiatives, such as the inaugural CAB member Conference held earlier this year and several activities carried forward from 2009/2010. This very positive result also means that our Reserves have increased from $805,335 for 2010 to $880,754 for 2011. Unfortunately, I will be stepping down from the role of Treasurer after a year in the position and leaving the CAB Board. I have been involved with the Board since 2008 and am leaving it in sound financial shape. During my tenure, the organisation has been quick to adapt to the new digital environment and the developments in this area will ensure the organisations future growth and success. I would like to thank the Board and the Secretariat for all their hard work and wish the members well as we enter the 2011-2012 financial year.

John Engisch, CAB Honorary Treasurer

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Circulations Audit Board

ABN 90 644 757 696

Financial Report
For the Year Ended 30 June 2011

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Board of Directors Report

Your Board members submit the financial report of the Circulations Audit Board for the financial year ended 30 June 2011. The names of Board members throughout the year and at the date of this report are: PRESIDENT: Rob Yeomans VICE PRESIDENT: Adrian Farrow HON. TREASURER: John Engisch BOARD MEMBERS: John Lewis Carol Morris Christopher OKeefe Matthew Pearce Alun Probert Angela Raso Harley Slatter Michael Tate Catherine Woodside Rank Publishing Co Pty Ltd Westwick-Farrow Media Torch Publishing Co Pty Ltd Insurance Australia Group Media Federation of Australia Initiative Perth Diversified Exhibitions Australia Department Technology & Administration Mindshare Pty Ltd Slatter & Partners Communications Leading Edge Group Telecoms Division News Limited

MEMBERS OF THE CAB BOARD REPLACED DURING THE FINANCIAL YEAR ENDED 30 JUNE, 2011 AMY RAPPO (nee Woodward), Mindshare replaced by NICK DRAPER, Mindshare replaced by ANGELA RASO, Mindshare DEAN SHELL, Universal MCCann replaced by CHRISTOPHER OKEEFE,, Initiative Perth, Principal Activities The principal activities of the association during the financial years were: to verify and disseminate audited distribution and other data to its members. Significant Changes No significant change in the nature of these activities occurred during the year. Operating Result The profit after providing for income tax amounted to $75,419.00. Signed on behalf of the CAB Board of Directors.

John Engisch, CAB Hon. Treasurer Dated this 28th day of September, 2011.

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Income Statement
For the Year Ended June 30 2011
Note 2011 $ 2010 $

INCOME Membership Subscriptions Report Sales Audit Fees - Member Audits OTHER INCOME Interest Received

395,912 529,319 925,231 41,024 966,255

370,430 473 362,671 733,574 27,215 760,789

The accompanying notes form part of these financial statements

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Income Statement continued

For the Year Ended June 30 2011
Note EXPENDITURE Accountancy & Auditing Fees Bad Debts Written Off Bank Charges Compliance Costs Computer Expenses Consultancy Fees Contractual Audit Fees Depreciation & Amortisation Electricity Fringe Benefits Tax General Expenses Holiday Pay IFABC Expenses Insurance Leasing Charges Long Service Leave Marketing Expenses Meeting Expenses Payroll Tax Postage Printing & Stationery Rent Repairs & Maintenance Rule Review Salaries & Wages Part Time Salaries of Share of Employment Costs Full Time Salaries Part Time Salaries Contractors Allowances Paid Staff Training & Welfare Staff Amenities Subscriptions Superannuation Contributions Telephone Travelling Expenses Web Audit Fees 2011 $ 2010 $

10,500 14,150 1,867 12,293 22,430 450 10,498 37,998 2,810 827 493 7,022 4,929 6,633 1,580 3,899 133,017 5,904 7,095 1,536 5,294 67,436 211 501 10,790 385,223 24,230 4,741 1,690 415,884 393 1,342 1,722 36,700 10,420 6,583 35,882 879,089

8,224 23,002 1,902 20,408 10,146 34,542 2,358 880 547 2,730 4,760 395 5,028 25,859 4,078 6,566 3,071 5,618 62,881 395 12,431 7,160 404,557 8,814 10,140 423,511 788 1,295 33,078 9,454 5,979 12,641 729,727

The accompanying notes form part of these financial statements 12 | P a g e

Income Statement continued

For the Year Ended June 30 2011
Note Profit before income tax Income tax expense Profit after income tax Retained earnings at the beginning of the financial year Retained Retained earnings at the end of the financial year 2011 $ 87,166 11,747 75,419 805,335 880,754 2010 $ 31,062 7,594 23,468 781,867 805,335

The accompanying notes form part of these financial statements

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Balance Sheet
As at June 30 2011
Note 2011 $ 2010 $

ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Financial assets TOTAL CURRENT ASSETS NONNON-CURRENT ASSETS Property, plant and equipment NONTOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Sundry Creditor Sundry Creditor - Audit Bureau of Circulations Trade Creditors Accruals GST Payable NAB Bank Account No. 16-214-8614 Provision for Income Tax Income in Advance TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS MEMBERS' FUNDS Retained earnings TOTAL MEMBERS' FUNDS

3 4

78,671 115,517 730,000 924,188

1,336 71,415 740,000 812,751

35,077 35,077 959,265

56,364 56,364 869,115

13,617 39,634 6,000 14,289 4,971 78,511 78,511 880,754

28,044 6,000 14,960 8,931 3,595 2,250 63,780 63,780 805,335

880,754 880,754

805,335 805,335

The accompanying notes form part of these financial statements

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Notes to the Financial Statements

For the Year Ended June 30 2011
1 Statement of Significant Accounting Policies This financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporation Act . The committee has determined that the association is not a reporting entity. The financial report has been prepared on an accruals basis and is based on historic costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets. The following significant accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report.

Income Tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to the profit or loss is the tax payable on taxable income. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. Deferred income tax expense reflects movements in deferred tax assets and deferred tax liability balances during the year as well as unused tax losses. Current and deferred income tax expense (income) is charged or credited directly to equity instead of profit or loss when the tax relates to items that are credited or charged directly to equity. Except for business combinations, no deferred income tax is recognised from the initial recognition of an asset or liability where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled and their measurement also reflects the manner in which the committee expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

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Notes to the Financial Statements continued

For the Year Ended June 30 2011
Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation. Property, Plant and Equipment (PPE) Leasehold improvements and office equipment are carried at cost less, where applicable, any accumulated depreciation. The depreciable amount of all PPE is depreciated over the useful lives of the assets to the association commencing from the time the asset is held ready for use. Leasehold improvements are amortised over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Impairment of Assets At the end of each reporting period, the association reviews the carrying valuesof its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Ay excess of the asset's carrying value over its recoverable amount is recognised immediately in the income and expenditure statement. Equivalents Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.

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Notes to the Financial Statements continued

For the Year Ended June 30 2011
Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. For this purpose, deferred consideration is not discounted to present values when recognising revenue. Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Revenue recognition relating to the provision of services is determined with reference to the stage of completion of the transaction at the end of the reporting period and where outcome of the contract can be estimated reliably. Stage of completion is determined with reference to the services performed to date as a percentage of total anticipated services to be performed. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent that related expenditure is recoverable. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the balance sheet.

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Notes to the Financial Statements continued

For the Year Ended June 30 2011
2011 $ 2 Income Tax Expense The components of tax expense comprise: Income Tax Expense 2010 $

11,747

7,594

Trade and Other Receivables Current Sundry Debtor Trade Debtors Financial Assets Current Bank Term Deposits Property, Plant and Equipment Land and Buildings Leasehold Improvements Less: Accumulated Amortisation Total Land and Buildings Office Furniture & Equipment Less: Accumulated Depreciation Software Less: Accumulated Depreciation Web Site Development Less: Accumulated Depreciation Total Plant and Equipment Property, Total Property, Plant and Equipment

4,045 111,472 115,517

71,415 71,415

730,000

740,000

12,232 (12,232) 54,785 (45,534) 9,251 17,496 (8,226) 9,270 74,680 (58,124) 16,556 35,077 35,077

12,232 (12,232) 47,374 (40,685) 6,689 8,196 (2,626) 5,570 74,680 (30,575) 44,105 56,364 56,364

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Notes to the Financial Statements continued

For the Year Ended June 30 2011
2011 $ 6 Tax Liabilities Current Provision for Income Tax 4,971 3,595 2010 $

Retained Earnings Retained earnings at the beginning of the financial year Net profit attributable to the association Retained earnings at the end of the financial year

805,335 75,419 880,754

781,867 23,468 805,335

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Statement by Members of the CAB Board of Directors

The CAB Board has determined that the association is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. In the opinion of the CAB Board the financial report as set out on pages 10 to 20: 1. 2. Presents a true and fair view of the financial position of Circulations Audit Board as at 30 June 2011 and its performance for the year ended on that date. At the date of this statement, there are reasonable grounds to believe that Circulations Audit Board will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Board of Directors by:

John Engisch, CAB Hon.Treasurer

Dated this 28th day of September, 2011

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Independent Auditors Report

To the Members of the Circulations Audit Board
ABN 90 644 757 696
Report on the Financial Report I have audited the accompanying financial report, being a special purpose financial report, of Circulations Audit Board (the association), which comprises the balance sheet as at 30 June 2011, and the income statement, a summary of significant accounting policies, other explanatory information and the statement by members of the committee. Committee's Responsibility for the Financial Report The committee of Circulations Audit Board is responsible for the preparation of the financial report, and has determined that the basis of preparation described in Note 1 is appropriate to meet the requirements of the and is appropriate to meet the needs of the members. The committee's responsibility also includes such internal control as the committee determines is necessary to enable the preparation of a financial report that is free from material misstatement, whether due to fraud or error. Auditor's Responsibility My responsibility is to express an opinion on the financial report based on my audit. No opinion is expressed as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the committee, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Independence In conducting my audit, we have complied with the independence requirements of Australian professional ethical pronouncements.

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Independent Auditors Report continued

To the Members of the Circulations Audit Board
ABN 90 644 757 696

Auditor's Opinion In my opinion, the financial report of Circulations Audit Board presents fairly, in all material respects the financial position of Circulations Audit Board as of 30 June 2011 and of its financial performance for the year then ended in accordance with the accounting policies described in Note 1 to the financial statements, and the Associations Incorporation Act . Basis of Accounting and Restriction on Distribution Without modifying my opinion, I draw attention to Note 1 of the financial report, which describes the basis of accounting. The financial report has been prepared to assist the association to meet the requirements of the Associations Incorporation Act. As a result, the financial report may not be suitable for another purpose.

Name of Firm:

James Mathers & Co. Chartered Accountants

Name of Principal:

Address:

27 Bydown Street, Neutral Bay

Dated this day of Wednesday 28th September 2011

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Certificate by Members of the Committee

I John Engisch, Hon. Treasurer of Circulations Audit Board and representing Torch Publishing certify that: (a) (b) I am a member of the Board of Directors of the Circulations Audit Board. I attended the annual general meeting of the Circulations Audit Board held on Wednesday October 20, 2010. I am authorised as the duly elected Hon. Treasurer by the Board of Directors to sign this certificate. This annual statement was submitted to the members of the association at its annual general meeting.

(c)

(d)

Committee member John Engisch, CAB Hon. Treasurer

Dated this 28th day of September 2011

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Level 8, 15 Blue Street North Sydney NSW 2060 Tel: +61 2 9954 9800 Fax: +61 2 9956 8220 Eml:info@auditbureau.org.au www.auditbureau.org.au
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