• Australian Institute of Music
• Australian Catholic University
• Avondale College
• Board of Studies NSW
• Charles Sturt University
• Jansen Newman Institute
• National Gallery of Australia

• Mr B Milligan * - Chairman (to June)
• Prof. J Rickard * - Chairman (from June)
• Prof P J Drake
• Mr G Ireland *
• Ms M Macpherson *

• Ms M Macpherson - Convenor
• Ms G Currie
• Ms I Evans
• Ms B Franklin
• Ms J Frawley
• Ms G Henderson

• Ms G Henderson - Convenor
• Ms J Lloyd
• Ms M Macaulay
• Dr S Oakshott
• Mr V Sharma
• Mr D Stewart

CHAIRMAN'S STATEMENT

Introduction

It gives me considerable pleasure to make my first report as Chair of UNILINC. The year 2001 saw continued success in the marketplace for Web-ezy, the fully interactive software product developed by UNILINC for the delivery of web-based information literacy services. It was also the year in which UNILINC implemented new software to support the UNILINC Shared System for use in member libraries from January 2002.

Highlights for 2001 include:

• success of Web-ezy
• increase in clients for contract cataloguing services
• two major consultancies
• the implementation of new software to support the Shared System

Finances

Income for the year was $2,089,800 ($1,723,405 in 2000). There was a loss for the year of $404,969 ($20,810 in 2000). This was fully due to the write off of software and hardware for the Shared System. Cash reserves as at 31December 2001 stood at $714,755 ($1,422,672 in 2000), the result of payments for the new system.

Board of Directors

The Board met four times during 2001. The Company held its Twenty Third Annual General Meeting on 23 May. At that time three Directors, Professor Peter Drake, Mr Graham Ireland and Mr Chris Sheargold retired in accordance with Section 28 of the Articles of Association. All Directors made themselves available for re election and were duly elected. Professor John Rickard from Southern Cross University was subsequently elected to the Chair at the following Board meeting taking the place of Mr Bruce Milligan who resigned from the Board after five years.

The Shared System

The provision of the one shared integrated library management system remains the core activity for UNILINC. A single bibliographic database of 1.6 million items underpins the Shared System ensuring efficiencies and facilitating resource sharing between member libraries.

Uptime and Response Times. The system provided 99.9% uptime.

National Bibliographic Database (NBD). UNILINC's contribution of holdings to the NBD during 2000/2001 ranked 7th in the nation.

Replacement Software. As at the end of 2001, the existing software had been in use for seven years. In January 2001 a contract was signed with Ex Libris (Aust) Pty Ltd for the supply of new software, the Aleph software. During 2001, much of the effort of UNILINC staff focused on the implementation of Aleph. There were four main streams to this; data conversion, testing of data and software, training library staff and system set up and parametisation.

The data conversion was a major exercise involving over 100 separate final extracts for the 15 data types. Each extract required testing and re-testing.

In addition to testing the standard software releases received as part of the implementation, UNILINC commissioned software development which required specification, analysis and testing.

In parallel with the conversion and testing process, UNILINC also conducted a full scale training program. Some 350 library staff attended 38 courses held in Sydney , Bathurst , Melbourne , Canberra , Wagga, Lismore and Brisbane . UNILINC staff conducted these courses over six months. To support this program staff developed training material to reflect local conditions. A sample of UNILINC bibliographic records formed the training database. This training was very well received.

UNILINC staff set up thirty separate local web catalogues and twelve different sub systems, one for each of the participating libraries.

Libraries saw the Web catalogue live for the first time on 20 December. The Circulation module was available from 9 January and the other modules followed.

Through out the implementation process a priority was placed on timely and detailed communication. During the early part of 2001 there were email reports broadcast at key times. As the actual implementation approached these became daily and then twice daily. For the first six weeks of live operation in the libraries, UNILINC operated a single email address for the reporting of problems and queries. Each query had a response within minutes. This response either answered the query or nominated the staff member who would deal with it.

This attention to communication and the extensive training program coupled with the quality of the software itself helped ensure a positive response to the new software.

Electronic Database Service

Four UNILINC members and the University of Western Sydney continued their subscriptions to an extensive range of outline research resources. These are currently housed on servers at UNILINC and use the Ovid software.

Consultancy Services

Australian Catholic University. The Executive Director and the Manager Client Services & Marketing completed a review of the Library's technical services operations across its six sites.

The Department of the Parliamentary Library (DPL). The Executive Director and the Manager Client Services & Marketing were engaged to benchmark the costs of collection acquisition and cataloguing processes with the present library system and with a new system installed in late 2001. The first phase of the study was in June 2001 and the second will be in June 2002. This was an open Tender.

National Library of New Zealand. In December, UNILINC was notified that it had won the Tender to review the technical services operations of the National Library of New Zealand. This review will take place in 2002.

Web-ezy

New clients included Shore School , the ACT Department of Education and Community Services (DECS) and the University of Tasmania . Shore has extended the use of the product to cover preparation for the Higher School Certificate. DECS uses Web-ezy within its training package for teachers in the ACT.

Web-ezy was considerably further enhanced during 2001 and the list of web resources grew from seven to fifteen.

Other Services

Wincat. Three issues of the UNILINC database were put to CD-ROM.

Strategic Purchasing. Some $631,078 worth of online services was made available to members at discount rates.

Contract Cataloguing. As at the end of 2001 five major Australian book suppliers use UNILINC as their provider of cataloguing services. Forty libraries across Australia now receive cataloguing services from UNILINC.

Facilities Hire and Training. The UNILINC facilities continued to prove attractive to a range of commercial training organisations. However, bookings were constrained by UNLINC's own use of the facilities.

Discounts on Books/Serials Supplies. Five suppliers continued to supply discounts for members ordering books and serials through the Shared System.

Promotional and Marketing Activities

Web-ezy.Com. The web-site for Web-ezy.com underwent a major upgrade in May.

Newsletter. The Newsletter was produced three times in the year.

Conferences. Trevor Unwin and Sarah Bishop (of Charles Sturt University ) presented a paper at Information Online 2001 in January. Glenda Henderson demonstrated Web-ezy at the invitation of the Canberra chapter of the Australian Library and Information Association. In September, Glenda along with Janet Fletcher of Southern Cross University and Bernadette Lingham of Deakin University presented a paper on Web-ezy at a national conference of reference librarians.

Committees and Staffing

The Technical Committee met three times in the year. The principal initiatives undertaken were advice on various aspects of the new system including conversion of files, security and login levels, validation checks, searchable fields for indexing purposes, and revised ways of providing catalogue access to electronic resources.

Glenda Henderson was appointed to the National Library's Expert Advisory Group on Authority Record Delivery. Rona Wade continued as a Member of Standards Australia Committee IT/19 - Computer Applications Information and Documentation.

Karell Garcia resigned in January to pursue opportunities overseas. Otherwise there were no staff changes in 2001.

Conclusion

During 2001 UNILINC succeeded in maintaining its high quality of service for existing products and services while at the same time devoting resources to the exacting task of implementing the new software.

The Company's success in the year was due to the hard work and positive support of the staff of member libraries and the efforts of the Executive Director and her enthusiastic and committed staff in the UNILINC Office. On behalf of the Board I wish to congratulate all concerned.

FINANCIAL STATEMENTS
for the period ended 31 DECEMBER 2001

Director's Report

The Directors submit the statutory report in respect of the results of the Company and its controlled entity for the financial year ended 31 December 2001 and the state of affairs of the Company and its controlled entity as at that date.

The names of the Directors in office at the date of this report are:

• J. Rickard. Chairman BSc, PhD, FIMA, FAIM, FANZAM
• P. J. Drake. BCom, PhD
• G. R. Ireland. LLB
• M. H. Macpherson. Deputy Chairman. BA, DipLib, AALIA
• B. R. O'Donnell. DipEd, MCom
• A. M. Ransome. BA (Hons), DipLib , MA , AALIA
• J.M Shaw. BA (Hons), DipLib, AALIA
• C. W. Sheargold. BA, AALIA
• R. D. Wade. Company Secretary. BA, DipLib, MLib, AALIA

The principal activities of the Company in the course of the financial year were library reference services. There was no change in the nature of these activities during the financial year.

The Company is a non-profit organisation which complies with the terms of sections 50-55 of the Income Tax Assessment Act 1997. Consequently, it is not necessary to provide for income tax or dividends. The Company has incorporated a subsidiary Web-Ezy Solutions Pty. Ltd. to market and develop products developed by the Company.

The consolidated operating result of the Company and its controlled entity for the financial year was a loss of $404,969 after providing $604,655 for depreciation (2000 deficit $20,810).

No matter or circumstance has arisen subsequent to the end of the financial year and to the date of this report that has significantly affected or may significantly affect the operations of the Company and its controlled entity, the result of those operations or the state of affairs of the Company and its controlled entity in subsequent financial years. The activities of the Company and its controlled entity in 2001 are discussed in the Chairman's Statement in the Annual Report. There are no significant developments which have been proposed for the immediate future.

During and since the end of the financial year, no Director of the Company or its controlled entity has received, or has become entitled to receive a benefit, other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors and the fixed salary of a full-time employee of the Company, because of a contract made by the Company, or a related company with a firm of which the Director is a member, or an entity of which the Director has a substantial financial interest.

Every member of the Company undertakes to contribute to the assets of the Company in the event of the Company being wound up during the time that it is a member or within one year of ceasing to be a member, for payments of debts and liabilities contracted before the time at which it ceased to be a member to the extent of $20. The total guarantee in favour of the Company stands at two hundred and eighty dollars ($280).

For the year ended 31 December 2001 , the number of meetings at which Directors were in attendance is as follows:

During the financial year the Company insured all of the Directors against liabilities for costs and expenses in any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company.

Signed at Sydney on 19 February 2002 for and on behalf of the Board in accordance with its Resolution.

Director
M Macpherson
R Wade

STATEMENT BY MEMBERS OF THE BOARD
for the year ended 31 December 2001

Pursuant to Section 41C (1B) and (1C) of the Public Finance and Audit Act 1983 and in accordance with a resolution of the Board of UNILINC Limited, we declare on behalf of the Board of the Directors that in our opinion:

1. The accompanying financial statements exhibit a true and fair view of the financial position of the Company and its controlled entity as at 31December 2001 and transactions for the year then ended.
2. The financial statements have been prepared in accordance with the Provisions of the Public Finance and Audit Act 1983 as amended, and its accompanying Regulations.

Further we are not aware of any circumstances which would render any particulars included in the financial statements to be misleading or materially inaccurate.

Signed at Sydney on 19 February 2002 for and on behalf of the Board in accordance with its Resolution.

Director
M Macpherson
R Wade

DIRECTORS' DECLARATION
for the year ended 31 December 2001

In the opinion of the Directors of the Company:

1. The financial statements and notes comply with accounting standards.
2. The financial statements and notes give a true and fair view.
3. At the date of this statement there are reasonable grounds to believe the Company will be able to pay its debts as and when they become due and payable and that the controlled entity will have the continued support of the Company.
4. The financial statements and notes are in accordance with the law.

Signed at Sydney on 19 February 2002 for and on behalf of the Board in accordance with its Resolution.

Director
M Macpherson
R Wade

STATEMENT OF FINANCIAL POSITION
as at 31 December 2001

STATEMENT OF FINANCIAL PERFORMANCE
for the year ended 31 December 2001

STATEMENT OF CASH FLOWS
for the year ended 31 December 2001

NOTES TO THE FINANCIAL REPORT
for the year ended 31 December 2001

1. Statement of Significant Accounting Policies
• The financial report has been prepared on an accrual basis and in accordance with historical cost principles and has not been adjusted to record either changes in the general purchasing power of the dollar or changes in the prices of specific assets. The financial report has been prepared in accordance with the Corporations Act 2001 and Section 41 (B) of the Public Finance and Audit Act 1983 and Regulations for a reporting entity and is a general purpose financial report.
• The consolidated financial report has been prepared by combining the accounts of all the entities that comprise the economic entity, being UNILINC Limited and its controlled entity, Web-Ezy Solutions Pty Ltd as defined in Accounting Standard AASB 1024 Consolidated Accounts. All inter-entity balances and transactions are eliminated in full.
• The prime cost method of depreciation has been used based on the anticipated useful life of assets owned. This resulted in a depreciation expense of $604,655 which includes the write-off of two years of the hardware and software used for the Shared System up until 20 December 2001 . The expected useful lives are as follow:

Class of Fixed Asset	Depreciation Rate
Furniture & Fitting	20%
Office equipment/software	10-33%
Networking equipment	20%
Leasehold improvements	10%
Major systems	10-12.5%

• UNILINC Limited is exempt from paying income tax under the provisions of sections 50-55 of the Income Tax Assessment Act 1997.
• UNILINC Limited is exempt from paying payroll tax under the provisions of section 10 (1)(k) of the Payroll Tax Act 1971.
• Applicable Accounting Standards, other mandatory professional reporting requirements (Urgent Issues Group Consensus views) and other authoritative pronouncements of the Australian Accounting Standard Board have been adhered to in preparing the financial report.
• No provision of doubtful debts was made as all debts are considered collectable.
• The economic entity recognises income from computer services when invoices are raised. Income from outside operating activities include interest, strategic purchasing, subscriptions and equipment sales to members. Interest income is recognised as it accrues.
• Where necessary, comparative figures have been adjusted to conform with changes in presentation to the current year. The reclassifications have no effect on the operating result (or the financial position) of the parent entity.
• Financial instruments give rise to positions that are a financial asset of either the economic entity or its counterparty and a financial liability (or equity instrument) of the other party. For the economic entity these include cash at bank, receivable and creditors. In accordance with AASB1033 "Presentation and Disclosure of Financial Instruments" information is disclosed in Note 24, in respect of the credit risk and interest rate risk of financial instruments. All such amounts are carried in the accounts at net fair value unless otherwise stated. The specific accounting policy in respect of each class of such financial instrument is stated hereunder.
  • Classes of instruments recorded at cost comprise: cash, receivables, finance lease and creditors.
  • Classes of instruments recorded at market value comprise: Nil
  • Classes of instruments recorded at other than cost or market valuation comprise: Nil
  • All financial instruments including revenue, expenses or other cash flows arising from instruments are recognised on an accrual basis.
  • Trade accounts receivables are carried at amount due. Bad debts are written off in the period in which they are identified.
  • Trade accounts payable are recognised when the economic entity becomes obliged to make future payments as a result of purchases. Trade accounts are usually settled within 30 days.
  • All foreign currency transactions during the year are bought to account using the exchange rate in effect at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at that date. Exchange differences are recognised in the Statement of Financial Performance in the period in which they arise.
2. Member's Guarantee. UNILINC Limited is limited by guarantee. Every member of the Company undertakes to contribute to the assets of the Company in the event of the same being wound up during the time it is a member or within one year afterwards, for payment of the debts and liabilities of the Company contracted before the time at which it ceases to be a member and of the costs, charges and expenses of winding up the same and for adjustment of the rights of the contributors among themselves, such amount as may be required not exceeding twenty dollars ($20). The total guarantee in favour of the Company stands at two hundred and eighty dollars ($280) as at 31 December 2001 (2000 - $280).
3. Subscriptions. Comprise annual UNILINC member subscriptions. Fourteen subscriptions were received in the period Fourteen institutions were members as at 31 December 2001.
4. Charges in Advance. Members are invoiced for 12 months in advance and income is bought to account on a progressive basis.
5. Revenue

		Economic Entity		Parent Entity
	Note	2001	2000	2001	2000
		$	$	$	$
Operating activities
Computer services		1,356,403	1,322,817	1,291,619	1,269,784
Subscriptions		14,000	14,750	14,000	14,750
Strategic purchasing	23	688,602	326,005	688,602	326,005
Interest received		30,795	59,833	30,795	59,833
Management fee – related party		-	-	24,388	59,308
		2,089,800	1,723,405	2,049,404	1,729,680

6. Receivables

   Debtors		478,370	505,269	468,470	505,269
   Less unpaid invoices		(376,053)	(390,141)	(376,053)	(390,141)
   		102,317	115,128	92,417	115,128
   Other debtors		3,126	3,601	-	-
   Loan to subsidiary		-	-	91,990	39,784
   Accrued income		1,731	8,788	1,731	8,788
   		107,174	127,517	186,138	163,700

7. Other Financial Assets

   Negotiable certificates of deposit – at cost

   441,024

   756,130

   441,024

   756,130

8. Other Assets

   Prepayments		26,937	24,598	26,937	324,598
   Strategic purchasing	23	244,245	322,340	244,245	322,340
   		271,182	346,938	271,182	346,938

9. Other Financial Assets

   Shares in subsidiary – at cost
   Web-Ezy Solutions Pty Ltd		-	-	1	1
   Inc: Australia - 100% owned

10. Provisions

    Current Liabilities
    Annual leave		38,245	51,011	38,245	51,011
    Non-Current Liabilities
    Long service leave		74,575	62,639	74,575	62,639
    Long service leave accruals begin from the employment date of each new employee and is payable when the employee completes 7 years of service. A liability for non-vested sick leave entitlement is not recognised as it is estimated that, on average, the sick leave taken in each year is less than the entitlement occurring in the year.

11. Changes in Equity

    Balance at beginning of financial year		1,106,424	1,127,234	1,159,704	1,127,234
    Net profit/(loss) after income tax		(404,969)	(20,810)	(369,992)	32,470
    Balance at the end of the financial year		701,455	1,106,424	789,712	1,159,704

12. Property Plant and Equipment

    Buildings  - at cost		69,494	69,494	69,494	69,494
    Accumulated depreciation		(1,390)	(695)	(1,390)	(695)
    		68,104	68,799	68,104	68,799
    Office equipment - at cost		789,658	781,322	789,658	781,322
    Accumulated depreciation		(621,137)	(583,143)	( 621,137)	(583,143)
    		168,521	198,179	168,521	198,179
    Computer equipment - at cost		3,211,339	2,709,505	3,211,339	2,709,505
    Accumulated depreciation		(2,607,471)	(2,104,763)	(2,607,471)	(2,104,763)
    		603,868	604,742	603,868	604,742
    Software - at cost		121,801	121,281	121,801	121,281
    Accumulated depreciation		(116,032)	(90,650)	(116,032)	(90,650)
    		5,769	30,631	5,769	30,631
    Leasehold improvements - at cost		53,684	53,684	53,684	53,684
    Accumulated depreciation		(51,674)	(50,838)	(51,674)	(50,838)
    		2,010	2,846	2,010	2,846
    Total Property Plant and Equipment		848,272	905,197	848,272	905,197
    Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year for the economic entity and parent entity.

    		Buildings	Furniture Equipment	Computer Equipment	Software	Leasehold Improvements	TOTAL
    		$	$	$	$	$	$
    Balance - end of Financial Year		68,799	198,179	604,742	30,631	2,846	905,197
    Additions		-	45,376	501,834	520	-	547,730
    Disposals		-	-	-	-	-	-
    Depreciation expense		(695)	(75,034)	(502,708)	(25,382)	(836)	(604,655)
    Carrying Amount - end of Financial Year		68,104	168,521	603,868	5,769	2,010	848,272

13. Audit Fee. The fee for audit of the consolidated financial report is $10,400 (2000 -$10,000). The Auditor-General of NSW received $165 for other services (2000 - $130).
14. Remuneration of Directors. The number of parent entity Directors whose income received or receivable from parent entity and any related parties was within the specified bands was follows:

    0 to $9,999 - 3 (2000 - 4), $110,000 - $119,999 - 1 (2000 - 1)

    The total income received or receivable by all Directors from the parent entity and its related parties was $116,197 (2000 - $113,500).

15. Superannuation. The economic entity paid $65,344 in 2001 (2000 - $62,123) to private insurance companies for its contribution for superannuation. There was no unfunded liability for employer contributions at 31 December 2001.
16. Payments to Consultants. There were no payments to consultants during 2001 (2000 - $Nil).
17. Management Fees. UNILINC Limited incurred certain expenses in relation to the operations of Web-Solutions Pty. Ltd. UNILINC Limited recovered these costs by way of a Management Fee for the year of $24,388 (2000 - $59,308).
18. Rental Lease. Commitments as at 31 December not otherwise provided for in the accounts

    		Economic Entity		Parent Entity
    		2001	2000	2001	2000
    		$	$	$	$
    not later than 1 year		140,945	133,298	140,945	133,298
    later than 1 year and not later than 5 years		223,163	324,596	223,163	324,596
    		364,108	457,894	364,108	457,894

19. Contingent Liabilities. There were no contingent liabilities as at 31 December 2001 (2000 - $Nil).
20. Note to Cash Flow Statement
    • Reconciliation of Cash
      

      		Economic Entity		Parent Entity
      		2001	2000	2001	2000
      Cash on hand		500	500	500	500
      Cash at bank		273,213	756,130	441,024	756,130
      Cash on deposit		441,024	756,130	441,024	756,130
      		714,755	1,442,672	714,755	1,442,672

    • Reconciliation of Net Cash Provided by Operating Activities to Operating Result
      

      Operating result		(404,969)	(20,810)	(369,992)	32,470
      Depreciation		604,655	203,237	604,655	203,237
      Bad debts written off		(451)	-	(451)	-
      Increase/(decrease) in payables		(488,215)	374,688	(489,185)	371,088
      Increase/(decrease) in fees in advance		13,073	109,827	21,847	92,731
      Increase/(decrease) in provisions		(830)	(8,629)	(830)	(8,629)
      Decrease/(increase) in receivable		20,794	(61,767)	30,219	(117,285)
      Decrease/(increase) in prepayments		75,756	(187,538)	75,756	(170,442)
      Net Cash Provided by Operating Activities		(180,187)	409,008	(127,981)	403,170

21. Segment Reporting. The economic entity operates predominantly in one geographic segment being Australia.
22. Environmental Issues. Issues. The economic entity's operations are not regulated by any significant environment regularities.
23. Strategic Purchasing. UNILINC acts as an intermediary in the purchase of database products to achieve economies of scale and recovers costs from respective members
24. Financial Instruments
• Interest Rate Risk. Interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in market interest rates. The exposure of the Company and its controlled entity to interest rate risks and the effective interest rates of financial assets and liabilities both recognised and unrecognised at the balance date are as follows:
  

  	2000
  Financial Instruments	Floating Interest Rates	Fixed interest rate Maturing in 2000		Non-interest bearing	Total carrying amount as per financial statements	Weighted average effective interest rate*
  		1 year or less	Over 1 to 5 years
  	$	$	$	$	$	$
  Financial Assets
  Cash	686,542	-	-	-	686,542	4.26*(1)
  Investments	-	756,130	-	-	756,130	6.07*(2)
  Receivables	-	-	-	127,517	127,517	N/A
  Total financial assets	686,542	756,130	-	127,517	1,570,189	-
  Financial Liabilities
  Creditors	-	-	-	884,063	884,063	N/A
  Total Financial Liabilities	-	-	-	884,063	884,063	-
  	2001
  Financial Assets
  Cash	273,732	-	-	-	273,732	4.06*(1)
  Investments	-	441,024	-	-	441,024	5.27*(2)
  Receivables	-	-	-	107,174	107,174	N/A
  Total financial assets	273,732	441,024	-	107,174	821,930	-
  Financial Liabilities
  Creditors	-	-	-	395,848	395,848	N/A
  Total Financial Liabilities	-	-	-	395,848	395,848	-
  *(1) Weighted average effective interest rate was computed on a monthly basis. *(2) Weighted average effective interest rate was computed on an annually basis.

• Credit Risk. Credit risk is the risk of financial loss arising from another party to a contract/or financial position failing to discharge a financial obligation thereunder. The maximum exposure of the Company and its controlled entity to credit risk is represented by the carrying of amounts of the financial assets in the financial statements. Credit Risk by classification of counterparty are as follows:

  2000
  	Governments	Banks	Other	Total
  	$	$	$	$
  Financial Assets
  Cash	-	686,542	-	686,542
  Investments	-	756,130	-	756,130
  Receivables	-	-	127,517	127,517
  Total Financial Assets	-	1,442,672	127,517	1,570,189
  2001
  Cash	-	273,732	-	273,732
  Investments	-	441,024	-	441,024
  Receivables	-	-	107,174	107,174
  Total Financial Assets	-	714,756	107,174	821,930

END OF AUDITED FINANCIAL STATEMENTS.