Remuneration report HRL Developments Pty Ltd (Administrators Appointed) (the Company) ACN 093 163 663
1. Remuneration declaration
2. Executive summary
3. Performance of work
4. Time costs, rates, allocation of staff and testing
5. Description of work completed / to be completed
6. Calculation of remuneration
7. Statement of remuneration claim
8. Remuneration recoverable from external sources
9. Disbursements
10. Summary of receipts and payments
11. Queries
12. Information sheets
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1. Remuneration declaration
We, Craig Crosbie, Stephen Longley and Ian Carson of PPB Advisory, have undertaken a proper assessment of this remuneration claim for our appointment as joint and several Administrators of HRL Developments Pty Ltd in accordance with the law and applicable professional standards. We are satisfied that the remuneration claimed is in respect of necessary work, properly performed, or to be properly performed, in the conduct of the administration. Dated this 25
th day of May 2016
Craig Crosbie, Stephen Longley and Ian Carson Administrators HRL Developments Pty Ltd
2. Executive summary
To date, no remuneration has been approved and paid in this administration. This remuneration report details approval sought for the following fees:
Period Report Reference
Amount (ex GST)
Current remuneration approval sought:
Voluntary Administration
Resolution 1: 27 October 2015 to 22 May 2016 Annexure A $29,844.50
Resolution 2: 23 May 2016 to 2 June 2016* Annexure B $6,299.50
Liquidation
Resolution 6: 2 June 2016 to completion of the liquidation* Annexure C $16,646.50
* Approval for the future remuneration sought is based on an estimate of the work necessary to the completion of the administration. Should additional work be necessary beyond what is contemplated, further approval may be sought from creditors.
Please refer to report section references detailed in the above table for full details of the calculation and composition of the remuneration approval sought. Across the 21 entities in the HRL Group:
the Administrators’ are seeking approval for $4.9m in fees
the Administrators’ have already written off $0.6m of their fees
the Administrators’ have achieved gross asset realisations and recoveries of $25.7m, prevented $1.6m in bank guarantees from being called, and saved a further $4.5m in employee entitlements from crystallising
the Administrators preserved jobs for 217 HRL Group employees, by selling the business and/or companies across which they were employed.
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In our initial advice to creditors dated 28 October 2015, we provided an estimate of costs to the date of the second meeting for the whole of the HRL Group of $0.5m to 0.7m. A copy of this advice is attached as Annexure D. Our initial advice assumed that the second creditors meeting would be held on 2 December 2015, five business days following the end of the convening period. In consultation with the Committees of Creditors across the Group, the Administrators sought, and were granted, two extensions to the convening period extending it to 26 May 2016. The increase in the fees across the Group is due to:
the extension of the convening period by six months to allow us to:
- address the complexities of the Company
- maximise asset realisations and potential returns to creditors
the continued operation and trading of businesses during the sale of business process
the sales processes taking longer than anticipated. Details of the work being undertaken by the Administrators and the recoveries achieved are included in the Report.
3. Performance of work
The Administrators confirm that:
the work undertaken was necessary and appropriate, having regard to the complexity and particular circumstances of this administration
the number and qualification of staff allocated to various aspects of the matter has been appropriate for the nature of the work that was performed
the allocation and seniority of staff was appropriate in relation to the tasks undertaken
the time recording and review processes were adequate; and
the charge out rates are comparable to market standards.
4. Time costs, rates, allocation of staff and testing
Annexure D is the remuneration and disbursement statement provided in our first report to creditors. This includes details for the rates, staff classification and the basis for remuneration chosen. On a time cost basis, the total fee charged is calculated as the hourly rate charged for each person who carried out the work, multiplied by the number of hours spent by each person on each of the tasks performed. Section 5 of this report provides a summary of the hours and value of work undertaken by task. For the purposes of this summary, the Administrators aggregate time charged by task. We note, however, that time charged on this appointment is recorded on an employee by employee basis in blocks of six minutes. Each block of time requires a supporting narrative, which details what work was performed, and by which staff member. To ensure that all time included in this report is appropriate, a detailed review of these underlying time entries has been performed to ensure that:
work has been completed by staff at the appropriate level
narrative supporting the time charged complies with the ARITA Code of Professional Practice
time charged has been properly and necessarily incurred.
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As a result of this review, the Administrators have determined not to seek fee approval across the HRL Group of $0.6m. The time to be written off relates primarily to:
time spent travelling to and from the Company’s premises from the Administrators’ offices
time charged where rework was required.
time charged for review of work in progress, including memorialising the review steps taken and review results
time charged which was not supported by sufficient narrative (i.e. while an employee worked the time charged, the narrative in their timesheet was not sufficiently detailed to support the time entry).
The Administrators have determined that these costs should not be paid at the expense of the creditors of the Company or the Group. PPB Advisory supports the Code of Professional Practice for Insolvency Practitioners. In all matters undertaken by us we seek to charge an appropriate level of fees and expenses based on comparable market rates. They should be appropriate for us having regard to the complexity and demands of each assignment, and appropriate for our clients having regard to their objectives in seeking our assistance. Senior management allocate staff to the most appropriate work streams based on their level of experience and the tasks to be completed.
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5. Description of work completed / to be completed
Resolution 1
Summary of work undertaken by Craig Crosbie, Stephen Longley and Ian Carson, Administrators of the Company and their staff for the period 27 October 2015 to 22 May 2016.
Task Area General Description Includes
Assets
14.7 hours
$7,899.00
Other assets Liaising with HRL staff regarding patent applications
Review of patent applications
Prepare information memorandum and advertise non-trading assets for sales
Liaise with potential bidders
Creditors
16.7 hours
$6,438.50
Creditor enquiries Receive and follow up creditor enquiries via telephone and email
Maintaining creditor enquiry register
Review and prepare correspondence to creditors and their representatives via facsimile, email and post
Retention of title Search the PPSR register
Secured creditor reporting Providing updates for the secured creditor – in person and via email
Preparation and circulation of estimated outcome statement
Responding to secured creditor’s queries
Repayment of secured creditor debt
Creditor reports Preparing initial creditors circular
Preparing section 439A report to creditors
Dealing with proofs of debt (‘POD’)
Receipting and filing POD
Meeting of creditors Preparation of meeting notices, proxies and advertisements
Forward notice of meeting to all known creditors
Preparing creditor meeting file, including agenda, certificate of postage, attendance register, list of creditors, reports to creditors, advertisement of meeting and draft minutes of meeting
Preparation and lodgement of minutes of meetings with ASIC
Responding to stakeholder queries and questions immediately following meeting
Convening and holding CoC meeting
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Task Area General Description Includes
Trade On
13.6 hours
$6,067.50
Budgeting and financial reporting
Reviewing company’s budgets and financial statements
Initial preparation of cash flow forecast for the administration period
Monitor and record actual cash flow compared with forecast
Re-forecast cash flow on an ad hoc basis in response to various issues arising during administration
Preparing weekly financial reports
Finalising trading profit or loss
Meetings with management and staff to discuss trading position
Investigation
15.3 hours
$6,049.00
Conducting investigation Collection of company books and records
Detailed review of the company’s books and records
Review and preparation of company nature and history
Conducting and summarising statutory searches
Preparation of comparative financial statements
Review of specific transactions and liaising with directors regarding certain transactions
Investigation of the conduct of the board
Investigations for possible insolvent trading
Preparation of investigation file
Investigation of potential transactions voidable by a liquidator, including preference payments and uncommercial transactions
ASIC reporting Preparing statutory investigation reports
Liaising with ASIC
Administration
9.4 hours
$3,390.50
Correspondence Correspondence with all involved parties via telephone, email, facsimile and on site
Document maintenance/file review/checklist
Filing of documents
File reviews
Updating checklists
Insurance Liaising with Willis Australia insurance brokers and management regarding appointment and key risks
Confirmation of adequacy of cover
Identification of potential issues requiring attention of insurance specialists
Correspondence with insurer regarding initial and ongoing insurance requirements
Correspondence with previous brokers
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Task Area General Description Includes
ASIC Form 524 and other forms Preparing and lodging ASIC forms including 505
Preparing Directors’ RATA pack
Review of completed Directors’ RATA packs and incorporation into statutory investigations and reporting
ATO and other statutory reporting
Preparing and finalising:
o notification of appointment
o letter to ATO requesting documents for investigation
Planning / Review Discussions regarding status of administration and allocation of staff to work streams
Books and records / storage Liaising with directors regarding books and records
Collection of company books and records
Preparing books and records
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Resolution 2
Summary of work being undertaken by Craig Crosbie, Stephen Longley and Ian Carson, Administrators of the Company and their staff for the period 23 May 2016 to 2 June 2016.
Task Area General Description Includes
Creditors
13.1 hours
$5,186.50
Creditor Enquiries Receive and follow up creditor enquiries via telephone and email
Maintaining creditor enquiry register
Review and prepare correspondence to creditors and their representatives via facsimile, email and post
Correspondence with committee of inspection members
Creditor reports Finalise s439A report to creditors
Finalise supplementary report to creditors’
Meeting of Creditors Finalisation of meeting notices, proxies and advertisements
Forward notice of meeting to all known creditors
Preparation of meeting file, including agenda, certificate of postage, attendance register, list of creditors, reports to creditors, advertisement of meeting and draft minutes of meeting
Administration
2.8 hours
$1,113.00
Document maintenance/file review/checklist
Six monthly administration review
Filing of documents
File reviews
Updating checklists
ASIC Form 524 and other forms Preparing and lodging ASIC forms
Correspondence with ASIC regarding statutory forms
Finalisation Notifying ATO of finalisation
Cancelling ABN registration
Completing checklists
Finalising WIP
Books and records / storage Dealing with records in storage
Sending job files to storage
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Resolution 6
Summary of work to be undertaken by Craig Crosbie, Stephen Longley and Ian Carson, Liquidators of the Company and their staff for the period 2 June 2016 to conclusion of liquidation.
Task Area General Description Includes
Creditors
10.0 hours
$4,325.00
Creditor Enquiries Receive and follow up creditor enquiries via telephone, email and post
Review and prepare correspondence to creditors and their representatives via facsimile, email and post
Correspondence with committee of inspection members (if required)
Secured creditor reporting Prepare and finalise reports to secured creditor on result of administration and liquidation
Creditor reports Preparing general reports to creditors
Meeting of Creditors or meeting of committee of inspection
Lodgement of minutes from second meeting of creditors
Preparation of meeting notices, proxies and advertisements for any future meetings of committee of inspection
Dealing with proofs of debt Receipting and filing creditor PODs
Investigation
13.5 hours
$5,934.00
Conducting investigation Reviewing the Company’s books and records
Liaising with directors regarding certain transactions
Preparation of investigation file
Correspondence with ASIC
Lodgement of investigation report to ASIC
ASIC reporting Preparing statutory investigation reports
Liaising with ASIC
Administration
17.1 hours
$6,387.00
Correspondence Correspondence with all involved parties via telephone, email, facsimile and on site
Document maintenance/file review/checklist
Filing of documents
Updating checklists
Six monthly review
Bank account administration Preparing correspondence closing accounts
Bank account reconciliations
Correspondence with bank regarding finalisation of accounts
ASIC forms and other forms Preparing and lodging ASIC forms including 524 and 911
Correspondence with ASIC regarding statutory forms
ATO and other statutory reporting
Preparing BAS
Completing group certificates and PAYG summaries
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Task Area General Description Includes
Finalisation Notifying ATO of finalisation
Cancelling ABN / GST / PAYG registration
Completing checklists
Finalising WIP
Books and records / storage Dealing with records in storage
Sending job files to storage
6. Calculation of remuneration
The calculation of remuneration schedules are attached as Annexures A, B and C.
7. Statement of remuneration claim
At the second meeting of creditors to be held on 2 June 2016, creditors will be asked to consider the following resolutions: Resolution 1 “To approve the Administrators’ remuneration for the period 27 October 2015 to 22 May 2016 of $29,844.50 plus GST, as detailed in the Remuneration Report dated 25 May 2016.” Resolution 2 “To approve the Administrators’ remuneration for the period 23 May 2016 to the conclusion of the Administration on 2 June 2016, as detailed in the Remuneration Report dated 25 May 2016, to be capped at a maximum of $6,299.50 plus GST.” Resolution 6 “To approve the Liquidators’ remuneration for the period 2 June 2016 to the conclusion of the liquidation, as detailed in the Remuneration Report dated 25 May 2016, to be capped at a maximum of $16,646.50 plus GST.” Future remuneration is approved subject to a maximum or cap. Sometimes the actual cost of the administration will exceed the maximum which has been approved, in which case, we may seek another resolution for additional remuneration. We will not pay any amount exceeding the maximum without this approval. Where funds are available, we will usually pay approved remuneration at intervals not less than one month. Where funds are not available, remuneration will not be paid.
8. Remuneration recoverable from external sources
The Administrators have not received any funding from external sources for the Administrators’ remuneration.
9. Disbursements
Disbursements are divided into three types:
Externally provided professional services – these are recovered at cost. An example of an externally provided professional service disbursement is legal fees.
Externally provided non-professional costs such as travel, accommodation and search fees – these are recovered at cost.
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Internal disbursements such as photocopying, printing and postage. These disbursements, if charged to the administration, would generally be charged at cost; though some expenses such as telephone calls, photocopying and printing may be charged at a rate which recoups both variable and fixed costs. The recovery of these costs must be on a reasonable commercial basis.
We are not required to seek creditor approval for disbursements, but must account to creditors. We have undertaken a proper assessment of disbursements claimed for the Company in accordance with the law and applicable professional standards. We are satisfied that the disbursements claimed are necessary and proper. The following disbursements have been incurred by the Administration to our firm for the period from 27 October 2015 to 22 May 2015. Where amounts have been paid to our firm for externally provided services and costs, those payments are in reimbursement of costs previously paid by our firm, either due to a lack of funds in the administration at the time the payment was due, or the direct invoicing of our firm by the supplier. A number of interstate employees worked on this matter. Where an employee has travelled from an interstate office to work on this matter, the Administrators have not charged the costs of travel, accommodation and meals to the appointment. Disbursements not charged to the HRL Group appointments in respect of staff travel costs to date total $83,274.16. Disbursements incurred Total
(Excl. GST) 27 October 2015 to 22 May 2016
Externally provided professional services
External consultants $40.24
Externally provided non-professional services
Travel $310.16
Advertising $14.38
Internal disbursements
Printing $386.75
IT consumables $211.15
Search fees $118.68
Postage $46.05
Courier $11.39
Telephone $32.75
Photocopy $18.35
Scanning $9.57
Other $1.16
Total $1,200.64
Future disbursements incurred by our firm will be charged to the administration on the following basis:
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Internal Disbursements Rate (Excl GST)
Advertising At cost
Courier At cost
Photocopy/Printing Black and white
Colour
A3 – Black and white
A3 – Colour
$0.10 per page
$0.50 per page
$0.20 per page
$0.60 per page
Postage At cost
Scans $0.05 per page
Staff vehicle use At prescribed ATO rates
10. Summary of receipts and payments
The summary of receipts and payments for the period from 27 October 2015 to 22 May 2016 is attached as Annexure F.
11. Queries
Please contact Lorelle McLennan on +613 9269 4000 or by email on [email protected] should you have any queries or require any further information.
12. Information sheets
Enclosed for your attention as Annexure E is the ASIC publication ‘Insolvency Information for directors, employees, creditors and shareholders’, which provides an index of all the information sheets that are available including information on ‘Approving fees’. You can download these forms from www.arita.com.au/insolvency-you/insolvency-explained/insolvency-fact-sheets.
HRL DEVELOPMENTS PTY LTD
ACN: 093 163 663
CALCULATION OF REMUNERATION - Annexure A
Professional fees for work undertaken by Ian Carson, Craig Crosbie, Stephen Longley, their partners and staff during the Voluntary Administration process for the period 27 October 2015 to 22 May 2016
Hours $ Hours $ Hours $ Hours $ Hours $ Hours $
Appointees
Carson, Ian 620 0.30 186.00 - - - - - - - - 0.30 186.00
Crosbie, Craig 620 1.30 806.00 - - 1.30 806.00 - - - - - -
Longley, Stephen 620 0.10 62.00 0.10 62.00 - - - - - - - -
Partner 620 0.30 186.00 - - - - - - 0.20 124.00 0.10 62.00
Director/Principal 560 19.80 11,088.00 11.40 6,384.00 2.40 1,344.00 - - 4.40 2,464.00 1.60 896.00
Senior Manager 490 8.70 4,263.00 2.30 1,127.00 1.20 588.00 3.90 1,911.00 0.30 147.00 1.00 490.00
Manager 445 10.90 4,850.50 0.20 89.00 0.80 356.00 8.10 3,604.50 0.50 222.50 1.30 578.50
Assistant Manager 410 2.60 1,066.00 - - 1.60 656.00 1.00 410.00 - - - -
Senior Analyst 370 5.20 1,924.00 0.60 222.00 1.20 444.00 0.10 37.00 3.30 1,221.00 - -
Analyst 305 13.00 3,965.00 - - 5.50 1,677.50 - - 5.10 1,555.50 2.40 732.00
Graduate 210 5.60 1,176.00 - - 2.70 567.00 0.50 105.00 1.50 315.00 0.90 189.00
Undergraduate 190 0.10 19.00 - - - - - - - - 0.10 19.00
Bookkeeper 140 1.70 238.00 - - - - - - - - 1.70 238.00
Executive Assistant 150 0.10 15.00 0.10 15.00 - - - - - - - -
Administration 120 - - - - - - - - - - - -
69.70 29,844.50 14.70 7,899.00 16.70 6,438.50 13.60 6,067.50 15.30 6,049.00 9.40 3,390.50
2,984.45
32,828.95
428.19
Administration
TOTAL
GST
TOTAL (including GST)
Average hourly rate (excluding GST)
Position Hourly Rate
(Ex GST)
Task Area
Total Assets Creditors Trade-on Investigation
HRL DEVELOPMENTS PTY LTD
ACN: 093 163 663
CALCULATION OF REMUNERATION - Annexure B
Calculation of estimated remuneration for Ian Carson, Craig Crosbie, Stephen Longley, their partners and staff during the Voluntary Administration process for the period 23 May 2016 to 2 June 2016
Hours $ Hours $ Hours $
Appointees
Carson, Ian 620 0.40 248.00 0.40 248.00 - -
Crosbie, Craig 620 0.50 310.00 0.50 310.00 - -
Longley, Stephen 620 0.30 186.00 0.30 186.00 - -
Partner 620 - - - - - -
Director/Principal 560 1.60 896.00 1.60 896.00 - -
Senior Manager 490 3.50 1,715.00 2.10 1,029.00 1.40 686.00
Manager 445 - - - - - -
Assistant Manager 410 2.60 1,066.00 2.60 1,066.00 - -
Senior Analyst 370 - - - - - -
Analyst 305 4.30 1,311.50 2.90 884.50 1.40 427.00
Graduate 210 2.70 567.00 2.70 567.00 - -
Undergraduate 190 - - - - - -
Bookkeeper 140 - - - - - -
Executive Assistant 150 - - - - - -
Administration 120 - - - - - -
15.90 6,299.50 13.10 5,186.50 2.80 1,113.00
629.95
6,929.45
396.19
Administration
TOTAL
GST
TOTAL (including GST)
Average hourly rate (excluding GST)
Position Hourly Rate
(Ex GST)
Task Area
Total Creditors
HRL DEVELOPMENTS PTY LTD
ACN: 093 163 663
CALCULATION OF REMUNERATION - Annexure C
Calculation of estimated remuneration for Ian Carson, Craig Crosbie, Stephen Longley, their partners and staff during the Liquidation process for the period 2 June 2016 to the conclusion of the Liquidation
Hours $ Hours $ Hours $ Hours $
Appointees
Carson, Ian 620 1.10 682.00 - - 0.20 124.00 0.90 558.00
Crosbie, Craig 620 1.60 992.00 - - 1.40 868.00 0.20 124.00
Longley, Stephen 620 1.10 682.00 - - 0.20 124.00 0.90 558.00
- - - - - -
Partner 620 - - - - - - - -
Director/Principal 560 10.00 5,600.00 5.00 2,800.00 4.90 2,744.00 0.10 56.00
Senior Manager 490 5.80 2,842.00 - - - - 5.80 2,842.00
Manager 445 - - - - - - - -
Assistant Manager 410 - - - - - - - -
Senior Analyst 370 - - - - - - - -
Analyst 305 15.70 4,788.50 5.00 1,525.00 6.80 2,074.00 3.90 1,189.50
Graduate 210 4.40 924.00 - - - - 4.40 924.00
Undergraduate 190 0.20 38.00 - - - - 0.20 38.00
Bookkeeper 140 0.70 98.00 - - - - 0.70 98.00
Executive Assistant 150 - - - - - - - -
Administration 120 - - - - - - - -
40.60 16,646.50 10.00 4,325.00 13.50 5,934.00 17.10 6,387.50
1,664.65
18,311.15
410.01 Average hourly rate (excluding GST)
Position Hourly Rate
(Ex GST) Total
Task Area
Administration
TOTAL
GST
TOTAL (including GST)
Creditors Investigation
Remuneration and disbursement statement
HRL Limited (ACN 061 930 756) ACN 151 146 422 Pty Ltd (ACN 151 146 422) HRL Technology Pty Ltd (ACN 062 076 199) Energy Brix Australia Corporation Pty Ltd (ACN 074 736 833) Vemco Pty Limited (ACN 065 985 453) Vemco Treasury Pty Ltd (ACN 081 954 789) Dual Gas Pty Ltd (ACN 117 102 244) HRL Water Pty Ltd (ACN 604 198 834) Linepro Pty Ltd (ACN 100 749 246) HRLDI (Holdings) Pty Ltd (ACN 118 989 629) (the Companies)
HRL Developments Pty Ltd (ACN 093 163 663) HRL Imports Pty Ltd (ACN 165 637 276) HRL Treasury Pty Ltd (ACN 062 076 279) Industrial Energy Pty Ltd (ACN 080 687 681) Vemco Services Pty Ltd (ACN 083 377 173) Vemtec Pty Ltd (ACN 070 489 039) HRL Infrastructure Services Pty Ltd (ACN 166 922 292) HRL (Hunter) Pty Ltd (ACN 097 325 810) Aerial Devices Australia Pty Ltd (ACN 115 776 353)
Remuneration Method There are four basic methods that can be used to calculate the remuneration charged by an insolvency practitioner. They are:
1. Time based / hourly rates
This is the most common method. The total fee charged is based on the hourly rate charged for each person who carried out the work, multiplied by the number of hours spent by each person on each of the tasks performed.
2. Fixed Fee
The total fee charged is normally quoted at the commencement of the administration and is the total cost for the administration. Sometimes a practitioner will finalise an administration for a fixed fee.
3. Percentage
The total fee charged is based on a percentage of a particular variable, such as the gross proceeds of assets realisations.
4. Contingency
The practitioner's fee is structured to be contingent on a particular outcome being achieved.
Method chosen Given the nature of this administration we propose that our remuneration as Administrators be calculated on Hourly Rates. This is because:
• it ensures that creditors are only charged for work that is performed
• as Administrators, we are required to perform a number of tasks which do not necessarily relate to realisation of assets, for example responding to creditor enquires, reporting to ASIC and conducting investigations and
• generally, it is difficult to estimate with accuracy the total amount of fees necessary to complete all tasks required in the administration.
Explanation of Hourly Rates The hourly rates charged by PPB Advisory effective from 1 July 2014 are set out within this remuneration report, together with a general guide showing the qualifications and experience of staff engaged in the administration.
The hourly rates charged encompass the total cost of providing professional services and are not comparable to an hourly wage.
Approval and payment of Remuneration Remuneration is approved by a resolution of the creditors, a creditors' committee or a court.
Future remuneration is approved subject to a maximum or cap. Sometimes the actual cost of the administration will exceed the maximum which has been approved, in which case, we may seek another resolution for additional remuneration. We will not pay any amount exceeding the maximum without this approval.
Where funds are available, we will usually pay approved remuneration at intervals not less than one month. Where funds are not available, remuneration will not be paid.
Estimate of Remuneration Having considered the nature of the administration, likely tasks to be completed and complexity, we estimate our total remuneration for the Companies to be $500,000 to $700,000 (exclusive of GST) for the period up to the second meeting of creditors to be held on 2 December 2015 (assuming no extension to the convening period).
Disbursements Disbursements are divided into three types:
• Externally provided professional services — these are recovered at cost. An example of an externally provided professional service disbursement is legal fees.
• Externally provided non-professional costs such as travel, accommodation and search fees — these are recovered at cost.
• Internal disbursements such as photocopying, printing and postage. These disbursements, if charged to the Administration, would generally be charged at cost, although some expenses may be charged at a rate which recoups both variable and fixed costs. The recovery of these costs must be on a reasonable commercial basis.
We are not required to seek creditor approval for disbursements, but must account to creditors. Details of the basis of recovering internal disbursements in this administration are provided below. Full details of any actual costs incurred will be provided with future reporting.
Basis of disbursement claim
Internal Disbursements
Rate (Excl GST)
Advertising At cost
Courier At cost
Photocopy/Printing Black and white
Colour
A3 — Black and white
A3 — Colour
$0.10 per page
$0.50 per page
$0.20 per page
$0.60 per page
Postage At cost
Scans $0.05 per page
Staff vehicle use At prescribed ATO rates
Rates applicable as at 1 January 2015
Statement of Remuneration Policy
Victoria General (Standard) Rate
Insolvency Practitioners, in common with many professions, have traditionally charged for work done on the basis of hourly rates.
PPB Advisory supports the Code of Professional Practice for Insolvency Practitioners. In all matters undertaken by us we seek to charge an appropriate level of fees and expenses. They should be appropriate for us having regard to the complexity and demands of each assignment, and appropriate for our clients having regard to their objectives in seeking our assistance.
Accordingly, at all times when seeking approval for remuneration we will provide the following details:
• type of work undertaken by the Appointees and the firm's staff
• breakdown of the activity undertaken
• number of hours charged by each person
• hourly rate charged for each person
• total remuneration claimed
• basis of recovering disbursements.
A schedule detailing our rates to apply to administrations for the period commencing 1 July 2014 is set out below, together with general details of Staff Classifications.
Position Rate per hour ($) (excl. GST)
Partner! Appointee
620
Director! Principal
560
Senior Manager
490
Manager
445
Assistant Manager
410
Senior Analyst
370
Analyst
305
Graduate
210
Undergraduate
190
Bookkeeper
140
Personal Assistant
150
Administration
120
Guide to Level of Insolvency Classification *
Position Experience and qualifications
Partner Registered Liquidator, Official Liquidator and/or Trustee, bringing his or her specialist skills to the administration.
Director/ Principal Minimum of twelve years insolvency experience, at least 5 years at manager level, qualified accountant and capable of controlling all aspects of an administration. May be appropriately qualified to take appointments in his/her own right.
Senior Manager More than 7 years insolvency experience, more than 3 years at manager level, qualified accountant and capable of controlling all aspects of an administration. Experienced at all levels and considered very competent.
Manager 5 - 7 years' experience, qualified accountant, with well-developed technical and commercial skills. Should be constantly alert to opportunities to meet clients' needs and to improve the clients' future operation either by revenue enhancement or by reducing costs and improving efficiency. Controls 2 - 4 staff.
Assistant Manager
3 - 6 years' experience, will have conduct of minor administrations and experience in control of 1 - 3 staff, assists planning and control of medium to larger jobs.
Senior Analyst 1 - 4 years' experience, CA Program (or equivalent) would normally be completed during this period. Assists planning and control of small to medium sized jobs as well as performing some of the more difficult work on larger jobs.
The difference between a Senior Analyst 1 and 2 included in this classification is the level of experience and competence.
Analyst 0 - 2 years, University graduate with little or no professional experience, required to assist in day to day fieldwork under supervision of more senior staff.
The difference between an Analyst 1 and 2 included in this classification is the level of experience and competence.
Graduate Graduated from University with minimal insolvency experience. Required to assist in day to day field work and other routine tasks under supervision of more senior staff.
Undergraduate Completed HSC and plans to undertake at least part-time degree/diploma, required to assist in administration and day to day field work under supervision or more senior staff.
Bookkeeper At least 4 years commercial experience in bookkeeping. May be a qualified accountant classification, would depend on experience, salary and complexity of work to be conducted.
The difference between a Senior bookkeeper and Bookkeeper included in this classification is the level of experience and competence.
Personal Assistant
Appropriate skills including machine usage and customer service, general administration duties on jobs.
Administration Non-qualified, assists with general administration duties on jobs.
" The above is taken as a general guide only. From time to time, there may be persons employed who, because of their skills and experience, are employed in positions where they may not necessarily meet all of the above qualifications.
Important note: The information sheets contain a summary of basic information on the topic. It is not
Insolvency information for directors, employees, creditors and shareholders ASIC has 11 insolvency information sheets to assist you if you’re affected by a company’s insolvency and have little or no knowledge of what’s involved.
These plain language information sheets give directors, employees, creditors and shareholders a basic understanding of the three most common company insolvency procedures—liquidation, voluntary administration and receivership. There is an information sheet on the independence of external administrators and one that explains the process for approving the fees of external administrators. A glossary of commonly used insolvency terms is also provided.
The Insolvency Practitioners Association (IPA), the leading professional organisation in Australia for insolvency practitioners, endorses these publications and encourages its members to make their availability known to affected people.
List of information sheets • INFO 41 Insolvency: a glossary of terms • INFO 74 Voluntary administration: a guide for creditors • INFO 75 Voluntary administration: a guide for employees • INFO 45 Liquidation: a guide for creditors • INFO 46 Liquidation: a guide for employees • INFO 54 Receivership: a guide for creditors • INFO 55 Receivership: a guide for employees • INFO 43 Insolvency: a guide for shareholders • INFO 42 Insolvency: a guide for directors • INFO 84 Independence of external administrators: a guide for creditors • INFO 85 Approving fees: a guide for creditors
Getting copies of the information sheets To get copies of the information sheets, visit ASIC’s website at www.asic.gov.au/insolvencyinfosheets. The information sheets are also available from the IPA website at www.ipaa.com.au. The IPA website also contains the IPA’s Code of Professional Practice for Insolvency Professionals, which applies to IPA members.
a substitute for legal advice. Some provisions of the law referred to may have important exceptions or qualifications. These documents may not contain all of the information about the law or the exceptions and qualifications that are relevant to your circumstances. You will need a qualified professional adviser to take into account your particular circumstances and to tell you how the law applies to you.
© Australian Securities & Investments Commission, December 2008 Page 1 of 1
ANNEXURE F – RECEIPTS AND PAYMENTS The following is a summary of the receipts and payments of the Company during the period 27 October 2015 to 22 May 2016. Amounts below are stated inclusive of GST.
Amount ($)
Trading Receipts
Consultant income 22,700.00
Total 22,700.00
Non Trading Payments
Legal fees (20,261.09)
Other costs (339.14)
Recharge of costs to other entities in the HRL Group (2,099.77)
Total (22,700.00)
Net cash received at 22 May 2016 -
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