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Directors Report

AUSTRALIAN SPORTS FOUNDATION LIMITED AND CONTROLLED ENTITIES
DIRECTORS’ REPORT

For the year ended 30 June 2020

The Directors present their report together with the consolidated financial report of the Australian
Sports Foundation Limited (the Sports Foundation) and controlled entities (the “consolidated entities” or “Group”) for the year ended 30 June 2020 and the auditors’ report thereon. The names and details of Directors who held office during the year and up to the date of this report is set out below.

MR MARK STOCKWELL OLY, DUniv (Chair)
EXPERIENCE AND SPECIAL RESPONSIBILITIES:

Mr Stockwell is an Olympian and a businessman, being the owner of Stockwell, a Property
Business in Queensland. The business is an investor, developer, builder, project manager, property manager and funds manager of industrial, retail, commercial, residential, retirement and leisure developments.

Mr Stockwell commenced his career as an elite swimmer representing Australia in the 1984 Los Angeles Olympics and 1986 Edinburgh Commonwealth Games. After his retirement from swimming, Mr Stockwell has maintained his participation in sport over the years and in 2011, chaired the successful bid by the Gold Coast to host the 2018 Commonwealth Games.
He was also Mayor of the Athletes Village during the Games also serving as Deputy Chair of the
Australian Sports Commission.

Mr Stockwell is a past President of the Property Council of Australia, Queensland division and served on the National Board, and was the inaugural Chair of Trade & Investment Queensland. Mr Stockwell is a Trustee of the Stockwell Foundation, founded with his wife Tracy to benefit children in need. In 2018, Mr Stockwell was appointed an Honorary Doctorate of Griffith University. Mr Stockwell was appointed to the Board as Chair and Director of the Sports Foundation on 1 July 2014.

MR JOSH LIBERMAN LLB, BComm
EXPERIENCE AND SPECIAL RESPONSIBILITIES:

Experience and special responsibilities: Mr Liberman is Chair of the Josh Liberman Group (JLG) one of Australia’s largest private investments groups, with interest in industries such as property, banking and finance and early stage venture capital. Mr Liberman has over the past decade, been active in funding and investing in numerous fund strategies in areas such as private equity and takeovers, aviation aircraft ownership, hedge fund management and equipment finance and leasing. JLG is currently also a partner in CVS Lane Capital Partners, focusing on structuring and advice in the property industry in Australia. Early stage investments have focused on internet companies which have had a potential for a global business and included companies such as Seek, Looksmart (for which he won the Venture prize in Australia) and Hitwise. JLG has been a large donor to a multitude of Australian and Global charities over the years. Mr Liberman holds a Bachelor of Law and Commerce from Monash University, and was appointed to the Board as Director of the Sports Foundation on 28 January 2015.

MS SAMANTHA PEARCE BCI
EXPERIENCE AND SPECIAL RESPONSIBILITIES:

Ms Pearce epitomises a new breed of digital leaders and innovators. For over 14 years she has guided, transformed and cajoled businesses towards effective marketing and behaviour change strategies that bridge the digital divide. Rising through the ranks of one of Australia’s leading digital agencies and working with accounts locally, nationally and globally, she has helped countless organisations grapple with the disruption of digital technologies and simultaneously built the capabilities and reputation of the agency she represents.

As Marketing Director and lead digital strategist of Liquid Interactive she leads a world-class team at one of Australia’s most successful independent digital creative groups, the Liquid Group of companies. Her industry achievements and recent accolades include Australian and International awards for digital strategy, purchase behaviour and mobile experience design.

In 2015 she received recognition from Google for her remarkable work as lead strategist for the Isuzu UTE Australia digital strategy. Samantha understands business; steeped in a family history of success and with the ability to combine new and traditional paradigms of thinking and acting, she brings a wealth of experience to the Sports Foundation Board. Ms Pearce was appointed to the Board as Director of the Sports Foundation on 13 December 2016.

MS KIM BRENNAN AM, OLY, GAICD
EXPERIENCE AND SPECIAL RESPONSIBILITIES:

Ms Brennan is a technology transformation advisor to Government, with a background in commercial law. Ms Brennan has also been appointed to the role of Deputy Chef de Mission of the 2020 (now 2021) Olympic Games. She is an Olympic gold, silver and bronze medallist in rowing, and World Youth silver medallist in track and field. Ms Brennan has been awarded a Member of the Order of Australia for her contribution to sport and the community and named in the Australian Financial Review’s Top 100 Women of Influence in 2018. She is a graduate of the Australian Institute of Company Directors Course. Ms Brennan was appointed to the Board as Director of the Sports Foundation on 23 October 2018.

MR ANDREW BAILDON OLY

EXPERIENCE AND SPECIAL RESPONSIBILITIES

Mr Baildon is founder and Managing Director of Baildon Group (encompassing Superfish Swim Schools, Goldfish Cafes and Jetts Fitness centres). He is a dual Olympian, and 5-time Commonwealth Games Gold Medallist, ranked in the top twenty swimmers in the world for over a decade. Mr Baildon is a respected swim industry expert, television and event presenter, MC, keynote speaker and international consultant. He is also an Australian Swimming board member and former ASCTA board member. Mr Baildon was the Australian Team Captain in 1993 and 1994 and was awarded the Australian Sports Medal for his service to sport. He was instrumental in the successful Commonwealth Games Bid in St Kitts & Nevis, bringing the 2018 Commonwealth Games to the Gold Coast and went on to be a member of the Sport & Technical Committee, Chairman of the Athletes Advisory Board and Member of the Queensland State Government's Legacy Committee. Mr Baildon was appointed to the Board as Director of the Sports Foundation on 23 October 2018.

MS GAIL MILLER OAM, OLY
EXPERIENCE AND SPECIAL RESPONSIBILITIES:

Ms Miller is the founding director of Goldstone Property Sales which is a premium project marketing group that specialises in new build sales via direct and indirect markets as well as developing residential resales programs for master planned communities. Gail holds a degree in Property Economics and has worked in the property industry for 18 years and has held various roles including; property analyst and national director of a project marketing group managing a team across multiple projects along the east coast of Australia. She commenced her sporting career as an elite water polo player where she was a member of the Australian Women’s Water Polo Team and the Australian Women’s Junior Team simultaneously. She was named in the World All Star Junior Team in 1995, the same year she debuted in the Australian open team. Gail was a member of the Australian team that won Gold at the Sydney 2000 Olympics and has been awarded an Order of Australia Medal. Gail is also a board member of the Queensland Olympic Council and a member of the Olympic Fundraising Committee. Gail was appointed to the Board as a Director of the Sports Foundation on 23 October 2018.

DIRECTORS’ MEETING
Six (6) Directors’ meetings and six (6) Finance, Audit and Risk Committee meetings were held during the financial year. The number of meetings attended by each Director during the financial year is:

Directors

Board Meetings

Finance, Audit and Risk Committee Meetings

A

B

A

B

Mark Stockwell

6

6

Josh Liberman

4

6

Samantha Pearce

6

6

Kim Brennan

6

6

5

6

Andrew Baildon

5

6

Gail Miller

6

6

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

PRINCIPAL ACTIVITIES
The principal activity of the Sports Foundation during the financial year was to raise money for the development of sport in Australia.

PERFORMANCE MEASURES
The Sports Foundation’s Mission is that everyone in Australia, regardless of background, ability or culture, has access to the health and social benefits of sport. Accordingly, objectives and associated performance measures include:

  • driving a substantial growth in the amount of philanthropic contributions to sport;
  • expanding the number of community sports clubs and aspiring athletes receiving our support; and
  • raising funds to promote Australian Government policy of getting more Australians, more active, more often; these funds are distributed through grant programs around four key pillars:
    • Active Kids
    • Women & Girls
    • Inclusion
    • Disaster Recovery

The Sports Foundation also recognises its responsibilities as the peak body for philanthropy in sport. Specifically its objective is to build awareness among the philanthropic and sporting communities of the health, social and community benefits of sport, and to advocate for increased philanthropic support for sport from individuals and businesses.


Key performance indicators include the number of organisations and athletes that receive funding from the Sports Foundation and the amount of money raised. In addition, funds raised and distributed through its Grant Programs, and the impact of those programs, are monitored to assess the effectiveness of these initiatives.

ORGANISATIONAL STRUCTURE

The Australian Sports Foundation is a public company limited by guarantee in accordance with the Corporations Act 2001 and is a ‘controlled’ Commonwealth Company under the Public Governance Performance and Accountability Act 2013. The purpose of the company is to raise money for the development of sport in Australia. The Sports Foundation is the sole shareholder and member of ASF Community Sports Fund Pty Ltd, which was incorporated on 20 June 2017. The purpose of the ASF Community Sports Fund is to act as Trustee for the Australian Sports Foundation Charitable Fund which was established on 4 July 2017. As at 30 June 2020, ASF Community Sports Fund Pty Ltd has no assets or liabilities. The ASF Charitable Fund commenced operations on 1 July 2018.

The Australian Sports Foundation employs 18 staff (16.5 full time equivalents). As at 30 June 2020 neither ASF Community Sports Fund Pty Ltd nor ASF Charitable Fund has any employees.

LOCATION OF MAJOR ACTIVITIES AND FACILITIES
As at 30 June 2020, the Sports Foundation operates from an office based at the Australian
Institute of Sport campus in Canberra, and an office at Sport House in Brisbane.

STATE OF AFFAIRS, FACTORS INFLUENCING PERFORMANCE, RISKS AND OPPORTUNITIES

The Covid-19 pandemic that commenced in early 2020 has had a dramatic impact on sport at all levels, including the professional codes and our national Olympic and Paralympic teams. At community level, the impact has been no less marked – with thousands of community clubs facing a serious threat to their survival due to a combination of reduced income and increased costs.

Covid-19 has also caused a sharp decline in overall economic activity, and the impact of this in the months and years ahead is uncertain. What is clear is that broader economic conditions, and those of the market in which the Sports Foundation operates, will be volatile for the foreseeable future. The Board and Management of the Sports Foundation consider the impact of Covid-19 and the uncertain economic conditions present both opportunities and risks for the Sports Foundation in fulfilling its purpose of raising money for Australian sport. Opportunities for growth include:

  • greater need for fundraising, and the support offered by the Sports Foundation, among community sports clubs;
  • greater awareness among the philanthropic and broader community of the important role of community sport in promoting physical and mental health, and helping our communities survive the challenges of a post-Covid society;
  • greater need for revenue diversification among national and elite sports, given pressures on traditional income streams such as sponsorship etc;

However, philanthropic giving is discretionary spending and previous recessions and economic downturns have led to a marked decline in philanthropic giving. A recent report by JB Were (Where to from here: The outlook for philanthropy during Covid-19) indicates that the philanthropic market is expected to decline by 7.1% in 2020 and a further 11.9% in 2021.

Taking all of these factors into account, the Sports Foundation is targeting modest growth in donations to sport in FY21.

REVIEW AND RESULTS OF OPERATIONS

The operating loss for the year ended 30 June 2020 was $2,605,060 (2019 operating profit of $1,621,882).

SIGNIFICANT DEVELOPMENT SINCE THE END OF FINANCIAL YEAR

There have been no significant developments since the end of the financial year.

ENVIRONMENTAL REGULATIONS

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

DIRECTORS, AND THE FINANCE AUDIT AND RISK COMMITTEE

The Federal Minister for Sport is responsible for appointing the Board of Directors. The number of Board members remained consistent with the prior year; being 6 members.

Pursuant to the Public Governance Performance and Accountability Act 2013, independent Members of the Finance, Audit and Risk Committee are appointed following a competitive process and offered positions on the Committee based on the individual experience and skill sets they each bring.

Ms Brennan Chaired the Sports Foundations Finance, Audit and Risk Committee throughout the 2020 financial year.

The independent members of the Finance, Audit and Risk Committee during the year were Mr Rodney Balding, Mr Jason Agnoletto and Mr Bob Sellwood, whose appointment commenced in October 2019.

INDEMNITIES AND INSURANCE PREMIUMS FOR OFFICERS

During the financial year, the Sports Foundation paid a premium in respect of a contract insuring the Directors and Officers against liability incurred as such a Director or Officer, other than conduct involving wilful breach of duty in relation to the Sports Foundation, to the extent permitted by the Corporations Act 2001.

The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

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

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

AUDITOR’S INDEPENDENCE DECLARATION

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

DIRECTORS’ BENEFIT

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

Dated on 16 of September 2020

Signature of ASF Chair Mark Stockwell

MARK STOCKWELL

BOARD CHAIR

Signature of ASF Director Kim Brennan

KIM BRENNAN

DIRECTOR

Director Signed in accordance with the resolution of the Directors