Sunday, August 2nd 2015 Photos courtesy of Graham & Barbara Grocott & Lisa McMahon

Transcription

1 Welcome to the 42nd Annual General Meeting of: Bundeena RSL Memorial Club Ltd. ABN: Sunday, August 2nd 2015 Photos courtesy of Graham & Barbara Grocott & Lisa McMahon

2 NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the forty second Annual General Meeting of the Bundeena RSL Memorial Club Ltd. will be held at Bundeena Community Hall (3-17 Liverpool St, Bundeena) on Sunday 2 nd August at 10am. Only current financial members are permitted to attend the meeting and you will be asked for your current membership card to register on arrival. AGENDA 1. Confirmation of the minutes of the Annual General Meeting of the Club held on Sunday 20 th July Receive the Annual Financial Statements and Reports for year ending Please note that any questions regarding the financial statements are requested to be submitted in writing to the CEO at least 7 days before the meeting to ensure that a thoroughly researched answer may be provided. 3. Progression of rebuilding Bundeena RSL Memorial Club since the major fire on Election of Office Bearers Please see the explanatory note (1) immediately following the agenda 5. Notice of motion It is requested that the following honorariums to Directors be authorised by the members of Bundeena RSL Memorial Club Ltd. for the ensuing financial year: President $750 Treasurer $500 Welfare Officer $500 Moved: Lynn Wootten, Seconded Ron Richardson 6. To deal with any other business of which due notice has been given 7. To deal with any other business that the meeting approve of which due notice has not been given. NOTES TO MEMBERS REGARDING AGENDA ITEMS Note (1) Election of office bearers At the Annual General Meeting held on 26 May 2002, a new constitution was adopted. Clauses of the new constitution regarding the election of office bearers are as follows: Clause 2: Biennial General Meeting means the Annual general meeting of the Club to be held in the year 2003 (which shall be the first Biennial General Meeting) and every second Annual General Meeting thereafter being the meeting at which the Board of Directors is to retire and the members elect a new Board of Directors. Clause 52: As and from the Annual General Meeting in 2003, the Board of Directors shall be elected biennially (every two years) by the general body of members and thereafter at each Biennial General Meeting or any adjournment thereof to hold office until the election at the next Biennial General Meeting In accordance with the above clauses, Directors will be elected at the 2015 Annual General Meeting for a term of 2 years. Dated: 26 th May 2015 Sara Watkins, CEO By order of the Board

3 BUNDEENA RSL MEMORIAL CLUB LTD ABN MINUTES OF THE 41 ST ANNUAL GENERAL MEETING OF BUNDEENA RSL MEMORIAL CLUB LTD HELD AT BUNDEENA RSL CLUB LOFTUS ST BUNDEENA ON SUNDAY JULY 20 TH 2014 MEETING OPENED: 10:30am. As there was not the required attendance of 50 for a quorum, the meeting was put off for 30 minutes to allow for late comers. At 10:30 there were over 50 attendees so the meeting began. The president, Lynn Wootten welcomed all attendees to the 41 st AGM of Bundeena RSL Memorial Club and thanked the group for their attendance. APOLOGIES: Peter Holgate, Cathy Holgate, Sarah Vibert, Wanda Stafford. MINUTES OF THE PREVIOUS AGM HELD SUNDAY 26 TH AUGUST 2013: Moved: G.Kelly Seconded: B.Best that the minutes be received carried. BUISNESS ARISING FROM MINUTES: Sara Watkins informed the members that the amalgamation discussions with the Bundeena Bowling and Sports Club Co - Op would not be continuing due to the Bowling Club advising the Bundeena RSL Memorial Club that they no longer wanted to proceed. She wished the Bowling Club all the best for the future. Moved: G.Kelly Seconded: T.Harridge that the minutes of the previous AGM held Sunday 26 th August 2013 be adopted carried. ANNUAL FINANCIAL STATEMENTS: The President welcomed our auditor from Booth Partners Tony Federici. Tony read the financial report to the members. Bar Trading was up by 17.8%, wages up by 8.2%. Poker Machine trading was down by 18.7%, and restaurant trading was up by 15.2%. There were no issues regarding the profit and loss statement. Borrowings coming down including the Alick Livingston loan and hire purchase. Overall Tony was very pleased with the results and congratulated all involved.

4 There being no questions on the financial report, the report was accepted. Moved: T.Harridge Seconded: M. Richardson Moved to reappoint the company Booth Partners as our auditors for 2014/15. Moved: B.Best Carried: S. Hargreaves NOTICE OF MOTION 3: HONORARIUMS: The President requested that the following honorariums be authorised by the members of Bundeena RSL Memorial Club Ltd for the following year: President: $750 Treasurer: $500 Welfare Officer: $500 Moved: M.Stone Seconded: R.Richardson ITEM 6: ANY OTHER BUSINESS OF WHICH DUE NOTICE HAS BEEN GIVEN: Nil business with due notice given had been received. ITEM 7: ANY OTHER BUSINESS OF WHICH DUE NOTICE HAS NOT BEEN GIVEN: Lynn requested any other business to be addressed from the floor. Grame Kelly suggested that we change the constitution of the club to allow for a minimum of 30 members as a quorum to be in attendance to hold the Annual General Meeting in the future, and have the meeting commence at 10:30am. Moved: P.Griffiths Seconded: G.Kelly Lynn thanked everyone for attending the AGM and thanked Sara for her hard work throughout the year. She thanked Tony Federici and Booth Partners, the board of directors, the staff and the volunteers. Meeting Closed: 11:24am

5 FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2015

6 CONTENTS Directors' Report 6 Independent Audit Report 9 Auditor's Independence Declaration 11 Statement of Profit or Loss & Comprehensive Income 12 Statement of Financial Position 13 Statement of Changes in Equity 14 Statement of Cash Flows 15 Notes to the Financial Statements 16 Directors' Declaration 32 Disclaimer on Additional Financial Information 33 Supplementary Information 34

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12 DIRECTORS' REPORT Your directors present their report on the company for the financial year ended 31 March Principal Activities The principal activities of the company during the financial year were: The operation of a registered club providing members and guests with facilities usually associated with an RSL club. The activities are specifically directed towards achieving the company's stated objectives. No significant change in the nature of these activities occurred during the year, however trading activities have temporarily ceased due to the damage to the club caused by a fire in February Objectives & Strategies The short term objective is to re-open the club. The long term objectives are to continue to provide club facilities to members and guests. The strategy to achieve these objectives is to work with the RSL, the community, and the insurers to rebuild the club, and to conservatively manage and monitor the club's financial position to ensure the new member facilities are kept at the highest standards. Performance Measurement The company uses industry accepted financial and non-financial KPI's to monitor performance. No dividends have been paid or declared since the start of the financial year. Membership The number of members registered in the Register of Members at 31 March 2015 were as follows: Members 1,130 Total Members 1,130 1,109 The company is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the company is wound up, the Memorandum & Articles of Association states that each member is liable to contribute a maximum of $2 each towards meeting any outstanding obligations of the entity. At 31 March 2015 the collective liability of members was $2,260 (31 March 2014: $2,218). Directors The names of the directors in office at any time during or since the end of the year are: Lynn Wooten Qualifications, experience, and special duties: Retired. 5 years Director. President Page 6

13 DIRECTORS' REPORT Ronald Richardson Qualifications, experience, and special duties: Retired. 3 years Director. Elaine Harridge Qualifications, experience, and special duties: Administration Manager. 4 years Director. David Lake Qualifications, experience, and special duties: Retired. 3 years Director. David Hargreaves Qualifications, experience, and special duties: Retired. 2 years as director. Jacqueline Porter Resigned 30/07/2014 Qualifications, experience, and special duties: Retail assistant. 1 year as director. Mark Stone Resigned 12/01/2015 Qualifications, experience, and special duties: Construction site manager. 1 year as director. Peter Smith Qualifications, experience, and special duties: Logistics manager - IGT Australia 1 year as director. Sue Cooper Qualifications, experience, and special duties: Retired. 1 year as director. Nick Galvin Appointed 17/02/2015 Qualifications, experience, and special duties: Journalist. Vice President Treasurer Director Director Director Director Director Director Director Page 7

14 DIRECTORS' REPORT Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Summary of Meeting Attendances: 8 ordinary meetings and 5 special meetings were held during the year. Number of Number of Meetings Eligible Meetings To Attend Attended Lynn Wooten Ronald Richardson Elaine Harridge David Lake David Hargreaves Jacqueline Porter 8 7 Mark Stone 9 4 Peter Smith Sue Cooper 13 8 Nick Galvin 4 4 Auditor's Independence Declaration The lead auditor's independence declaration for the year ended 31 March 2015 has been received and can be found on page 6 of the financial report. Signed in accordance with a resolution of the Board of Directors: Director: Lynn Wooten Dated 10 July 2015 Page 3

15 INDEPENDENT AUDIT REPORT TO THE MEMBERS OF BUNDEENA R.S.L MEMORIAL CLUB LIMITED Scope We have audited the accompanying financial statements of Bundeena R.S.L Memorial Club Limited being the statement of profit or loss and comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows, a summary of significant accounting policies and other explanatory notes and the directors' declaration for the financial year ended 31 March The company's directors are responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards - Reduced Disclosure Requirements (including the Australian Accounting Interpretations) and the Corporations Act This responsibility includes designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These auditing standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of risks of material misstatement of the financial statements, 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 statements 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 directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of the company on 10 July 2015, would be in the same terms if provided to the directors as at the date of this auditor's report. Emphasis of Matter Leasehold improvements have been written down based on preliminary assessments of fire damage. There is material uncertainty as to whether final assessments will require further write-downs and as a result, the value of leasehold improvements at 31 March 2015 may be materially overstated. Page 9

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18 STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME Note $ $ Revenue 2 1,777,410 1,898,500 Other income 2 262,570 44,190 Cost of sales (589,148) (580,950) Borrowing costs (23,730) (35,063) Depreciation, amortisation, & loss on disposals (514,034) (71,676) Employee benefits and on-costs (730,376) (716,958) Entertainment & Promotion Expenses (101,803) (125,036) Occupancy costs (108,435) (124,259) Repairs & maintenance (116,393) (123,350) Other expenses (278,815) (153,437) Profit (Loss) before income 3 (422,754) 11,961 Income tax expense Profit (loss) attributable to members of the company (422,754) 11,961 Other comprehensive income Other comprehensive income - - Total comprehensive income (loss) attributable to members of the company (422,754) 11,961 The accompanying notes form part of these financial statements. Page 12

19 STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH Note $ $ CURRENT ASSETS Cash and cash equivalents 5 66, ,800 Trade and other receivables ,500 Inventories 7-57,688 Other current assets 8 4,994 11,697 TOTAL CURRENT ASSETS 71, ,685 NON-CURRENT ASSETS Property, plant and equipment 9 759,051 1,182,270 TOTAL NON-CURRENT ASSETS 759,051 1,182,270 TOTAL ASSETS 830,760 1,412,955 CURRENT LIABILITIES Trade and other payables 10 79, ,191 Borrowings , ,579 Short term provisions 12 71,676 61,868 Other current liabilities 13 19,107 14,477 TOTAL CURRENT LIABILITIES 282, ,115 NON-CURRENT LIABILITIES Borrowings , ,351 Long term provisions 12 1,192 10,109 Other non-current liabilities 13 7,115 6,022 TOTAL NON-CURRENT LIABILITIES 151, ,482 TOTAL LIABILITIES 434, ,597 NET ASSETS 396, ,358 EQUITY Reserves , ,933 Retained earnings 236, ,425 TOTAL EQUITY 396, ,358 The accompanying notes form part of these financial statements. Page 13

20 STATEMENT OF CHANGES IN EQUITY Retained Profits Reserves Total Balance at 1 April , , ,397 Profit (loss) for the year 11,961-11,961 Other comprehensive income for the year Total comprehensive income attributable to members of the entity 11,961-11,961 Balance at 31 March , , ,359 Balance at 1 April , , ,359 Profit (loss) for the year (422,754) - (422,754) Other comprehensive income for the year Total comprehensive income attributable to members of the entity (422,754) - (422,754) Balance at 31 March , , ,605 The accompanying notes form part of these financial statements. Page 14

21 STATEMENT OF CASH FLOWS Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 1,850,103 1,957,314 Payments to suppliers and employees (1,932,731) (1,784,417) Interest received 1,790 1,858 Interest paid (23,730) (34,535) Insurance Proceeds 200,000 - Net cash provided by (used in) operating activities 95, ,220 CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment (90,816) (43,388) Net cash provided by (used in) investing activities (90,816) (43,388) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings (90,941) (84,771) Net cash provided by (used in) financing activities (90,941) (84,771) Net increase (decrease) in cash held (86,325) 12,061 Cash at beginning of financial year 152, ,739 Cash at end of year 5 66, ,800 The accompanying notes form part of these financial statements. Page 15

22 NOTES TO THE FINANCIAL STATEMENTS 1 Summary of Significant Accounting Policies Basis of Preparation Bundeena R.S.L Memorial Club Limited applies Australian Accounting Standards - Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers to Australian Accounting Standards and AASB2010-2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. The financial statements are general purpose financial statements that have been prepared in accordance with the requirements of the Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in the financial statements containing relevant and reliable information about transactions, events and conditions to which they apply. Material accounting policies adopted in the preparation of these financial statements are presented below. They have been consistently applied unless otherwise stated. The financial statements, except for cash flow information, have been prepared on an accrual basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. The financial statements of Bundeena R.S.L Memorial Club Limited for the year ended 31 March 2015 were authorised for issue in accordance with a resolution of the directors on 10 July 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. Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and cessation of all involvement in those goods. Donations and bequests are recognised as revenue when received. Insurance proceeds are recognised when the club receives a commitment from the insurers to make payment. Page 16

23 NOTES TO THE FINANCIAL STATEMENTS 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 short term borrowings in current liabilities on the balance sheet. Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basis. Stores are valued at cost. Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Each class of property, plant and equipment has been reviewed and written down in relation to fire damage in accordance with the policies outlined below. Property Freehold land and buildings are measured at cost less depreciation. It is the policy of the entity to have annual appraisals by the directors to ensure the carrying amount is not in excess of the recoverable amount from those assets. Plant and Equipment Plant and equipment is measured on the cost basis less depreciation and impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised. A formal assessment of recoverable amount is made when impairment indicators are present. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Page 17

24 NOTES TO THE FINANCIAL STATEMENTS The depreciation rates used for each class of depreciable asset are: Class of Fixed Asset Depreciation Rate Leasehold Improvements 2.5% - 40% Plant & Equipment 5% - 40% Office Furniture & Equipment 7.5% - 15% Poker Machines 20% - 30% The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified 'at fair value through profit or loss', in which case transaction costs are expensed to profit or loss immediately. Classification and Subsequent Measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, prices quoted in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. Page 18

25 NOTES TO THE FINANCIAL STATEMENTS The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss. (i) Financial assets at fair value through profit or loss Financial assets are classified as 'fair value through profit or loss' when they are held for trading for the purpose of short term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss. (ii) (iii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the company's intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Page 19

26 NOTES TO THE FINANCIAL STATEMENTS (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with changes in such fair value (i.e. gains or losses) recognised in other comprehensive income (except for impairment losses and foreign exchange gains and losses). When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are classified as current assets when they are expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as non-current assets. (v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are immediately recognised in profit or loss. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point. In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified to profit or loss at this point. In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults. For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written off amounts are charged to the allowance account of the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance accounts. Page 20

27 NOTES TO THE FINANCIAL STATEMENTS When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognised the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. Derecognition Financial assets are derecognised when the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. Impairment of Assets At each reporting date, the company reviews the carrying values of 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. Any excess of the asset's carrying value over its recoverable amount is expensed to the income statement, unless the asset is carried at a revalued amount in accordance with another standard. Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other standard. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. 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. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Page 21

28 NOTES TO THE FINANCIAL STATEMENTS Cash flows are presented on a gross basis, except for the GST component of investing and financing activities which are disclosed as operating cash flows. Income Tax The income tax expense for the year is the tax payable on the current year's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Under the concept of mutuality, the company is only assessed for income tax on that proportion of income derived from non-members and other external sources. Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are recognised at the tax rates expected to apply when the assets are recovered or the liabilities are settled. Current and deferred tax is recognised as an expense in the income statement except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available, against which deductible temporary differences can be utilised. Employee Benefits Short term employee benefits Provision is made for the company's obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The company's obligations for short-term employee benefits such as wages and salaries are recognised as a part of current liabilities in the statement of financial position. Page 22

29 NOTES TO THE FINANCIAL STATEMENTS Other long-term employee benefits The company classifies employee's long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the company's obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The company's obligations for long-term employee benefits are presented as non-current liabilities in the statement of financial position, except where the company does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period, in which case the obligations are presented as current liabilities. Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in the income statement in the period in which they are incurred. Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Page 23

30 NOTES TO THE FINANCIAL STATEMENTS Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. Key estimates - Impairment The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. Key judgments - Fire Damage As at the date of signing, the write down of property, plant and equipment has been based on preliminary damage reports prepared by the assessors. It is the opinion of the directors that following stage 1 demolition works, the final assessment will find the remaining building to be structurally sound and no further demolition will be required. Page 24

31 NOTES TO THE FINANCIAL STATEMENTS $ $ 2 Revenue Operating activities Trading Revenue 1,777,410 1,898,500 Interest 1,790 1,858 Members Subscriptions 793 4,912 Sundry Income 259,987 37,420 2,039,980 1,942,690 3 Profit from Ordinary Activities Profit from ordinary activities before income tax expense has been determined after: Expenses: Cost of sales 589, ,950 Borrowing costs Borrowing Costs Interest Paid 23,730 34,535 Total borrowing costs 23,730 35,063 Bad and doubtful debts Bad Debts Total bad and doubtful debts Auditor's Remuneration Accounting Fees 8,000 8,000 Auditors Remuneration 8,000 8,000 Total Auditor's Remuneration 16,000 16,000 No other benefits were received. 4 Income Tax Expense The prima facie tax payable on profit (loss) before income tax is reconciled to the income tax expense as follows: Prima facie tax payable on profit (loss) before income tax at 30% (2014: 30%): (126,809) 3,588 Page 25

32 NOTES TO THE FINANCIAL STATEMENTS $ $ Add: Tax effect of: Non-deductible expenses 81,239 1,131 Losses not brought to account as deferred tax assets 28,597 - Timing differences 831 1,046 Mutuality adjustment 16, ,765 Less: Tax effect of: Mutuality adjustment - 1,273 Non-assessable income Recoupment of losses not brought to account as deferred tax assets - 4,492 Income tax expense attributable to company - - The total value of unused tax losses on revenue account for which no deferred tax asset is recognised is $172,844 (2014: $77,521). The total value of unused tax losses on capital account for which no deferred tax asset is recognised is $272,863 (2014: $0). 5 Cash and Cash Equivalents Current Cash on Hand - 51,683 Cash Management Account 48,209 83,163 National Australia Bank - T/Deposit 5,000 5,000 National Australia Bank - Current Account 12,266 12,954 Benefit Account 1,000-66, ,800 Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the balance sheet as follows: Cash and cash equivalents 66, ,800 66, ,800 Page 26

33 6 Trade and Other Receivables BUNDEENA R.S.L MEMORIAL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS $ $ Current Trade Debtors 240 3,572 ATM Clearing Account - 4,270 Other Debtors ,500 7 Inventories Current Stock on Hand - 34,222 Stock on Hand - Other - 23,466-57,688 8 Other Current Assets Current Prepayments 4,994 11,697 9 Property, Plant and Equipment Land and Buildings Leasehold Improvements 1,004,123 1,409,455 Less: Accumulated Depreciation (291,470) (390,936) 712,653 1,018,519 Total Land and Buildings 712,653 1,018,519 Page 27

34 NOTES TO THE FINANCIAL STATEMENTS $ $ Plant and Equipment Plant & Equipment at Cost 57, ,414 Less: Accumulated Depreciation (18,177) (171,277) 39, ,137 Office Furniture & Equipment at Cost 10,055 22,445 Less: Accumulated Depreciation (2,827) (15,026) 7,228 7,419 Poker Machines at Cost - 85,816 Less: Accumulated Depreciation - (82,621) - 3,195 Total Plant and Equipment 46, ,751 Total Property, Plant and Equipment 759,051 1,182,270 All of the leasehold improvements owned by the club are located at Loftus Street Bundeena, and are considered 'Core Property' as defined in the Registered Club Act We refer to the carrying amount of the leasehold improvements. The cost incurred by Bundeena RSL Memorial Club Limited would be expected to remain with the owners of the land at Loftus Street, Bundeena. The building improvements made by the club would be difficult to relocate from the land itself. Movements in Carrying Amounts Movements in carrying amount for each class of property, plant and equipment between the beginning and the end of the financial year: Carrying Value Carrying Value 1 Apr 2014 Additions Disposals Depreciation 31 Mar 2015 Leasehold Improvements 1,018,519 - (272,863) (33,003) 712,653 Plant & Equipment 153,137 87,735 (161,803) (39,899) 39,170 Office Furniture & Equipment 7,419 3,080 (1,181) (2,090) 7,228 Poker Machines 3,195 - (2,333) (862) - 1,182,270 90,815 (438,180) (75,854) 759,051 Page 28

35 NOTES TO THE FINANCIAL STATEMENTS $ $ 10 Trade and Other Payables Current EFTPOS Clearing Account Sundry Creditors 3,635 7,699 Accrued Expenses 18,981 20,372 Trade Creditors 45, ,845 GST Payable 11, , ,191 Financial liabilities at amortised cost classified as trade and other payables Trade and other payables: - Total current 79, ,191 - Total non-current , ,191 Less: GST (11,060) (97) Accrued Expenses (18,981) (20,372) Gift vouchers (1,039) (406) Financial liabilities as trade and other payables 47, , Borrowings Current Lease Liability - 1,871 Less: Unexpired Lease Liability - (92) Loan - A & M Livingston 112, ,800 Total current borrowings 112, ,579 Non-Current Loan - A & M Livingston 143, ,351 Total borrowings 255, ,930 Page 29

36 NOTES TO THE FINANCIAL STATEMENTS $ $ The loan from Alick Livingston is secured by a first registered fixed and floating charge over the assets and undertakings of the Bundeena RSL Memorial Club Ltd. Lease liabilities are secured by the underlying leased assets. 12 Provisions Current Provision for Annual Leave 56,855 55,038 Provision for Long Service Leave 14,821 6,830 71,676 61,868 Non-Current Provision for Long Service Leave 1,192 10,109 Aggregate Employee Benefit Liability 72,868 71, Other Liabilities Current Income in Advance 7,185 6,700 Poker Machine Tax Rebate 2,863 2,863 Subscriptions in Advance 9,059 4,914 19,107 14,477 Non Current Subscriptions in advance 7,115 6, Reserves Capital Profits Reserve 159, ,933 Page 30

37 15 Key Management Personnel Compensation BUNDEENA R.S.L MEMORIAL CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS $ $ Total Compensation 95,133 88, Related Party Transactions Transactions between related parties are on normal commercial terms and conditions. These terms and conditions are no more favourable than those available to other parties unless otherwise stated. 17 Financial Risk Management The company's financial instruments consist mainly of deposits with banks, accounts receivable and payable, and leases. The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Financial Assets Cash and cash equivalents 66, ,800 Loans and receivables 240 8,500 Total Financial Assets 66, ,300 Financial Liabilities Financial Liabilities at amortised cost - Trade and other payables 45, ,720 - Borrowings 255, ,930 Total Financial Liabilities 301, ,650 Page 31

38 The directors of the company declare that: BUNDEENA R.S.L MEMORIAL CLUB LIMITED DIRECTORS' DECLARATION 1. The financial statements and notes are in accordance with the Corporations Act 2001: (a) (b) comply with Australian Accounting Standards - Reduced Disclosure Requirements; and give a true and fair view of the financial position of the company as at 31 March 2015 and of its performance for the year ended on that date. 2. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the board of directors. Director: Lynn Wooten Dated 10 July 2015 Page 32

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40 SUPPLEMENTARY INFORMATION DEPARTMENTAL PROFIT AND LOSS STATEMENT Note $ $ Bar Trading Bar Sales 624, ,268 Function Room Sales 44,047 31, , ,114 LESS: COST OF GOODS SOLD Opening Stock 20,594 17,078 Purchases 257, ,854 Closing Stock (26,321) (20,594) 251, ,338 GROSS PROFIT FROM TRADING 416, ,776 EXPENDITURE Depreciation and amortisation 6,330 6,847 Repairs & Maintenance 5,997 9,224 Sundry Purchases 13,469 6,298 Wages - Bar 161, ,492 Wages - Function Room 4,388 6, , ,324 NET PROFIT 224, ,452 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached disclaimer of Booth Partners. Page 34

41 SUPPLEMENTARY INFORMATION DEPARTMENTAL PROFIT AND LOSS STATEMENT Note $ $ Poker Machine Trading Net Clearances 224, , , ,863 EXPENDITURE Data Monitoring Services 9,899 10,385 Depreciation and amortisation 5,408 6,702 Hopper Variations - (227) Poker Machine Turnover Duty (17,180) (17,180) Quickchange Fees 623 1,529 Repairs & Maintenance 4,382 7,208 Stationery Wages 11,200 12,683 14,368 21,173 NET PROFIT 209, ,690 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached disclaimer of Booth Partners. Page 35

42 SUPPLEMENTARY INFORMATION DEPARTMENTAL PROFIT AND LOSS STATEMENT Note $ $ TAB & Keno Trading Keno Commission 47,047 55,923 TAB Commission 14,068 21,312 61,115 77,235 EXPENDITURE Keno Expenses 2,123 3,686 TAB Expenses 7,307 9,053 9,430 12,739 NET PROFIT 51,685 64,496 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached disclaimer of Booth Partners. Page 36

43 SUPPLEMENTARY INFORMATION DEPARTMENTAL PROFIT AND LOSS STATEMENT Note $ $ Restaurant Trading Bistro/Restaurant Takings 823, , , ,288 LESS: COST OF GOODS SOLD Opening Stock 13,628 14,337 Purchases 339, ,903 Closing Stock (15,349) (13,628) 337, ,612 GROSS PROFIT FROM TRADING 486, ,676 EXPENDITURE Apprenticeship rebate - (750) Cleaning 1,915 2,212 Depreciation and amortisation 9,327 - Gas Supplies 11,814 17,021 Printing & Stationery Repairs & Maintenance 8,400 5,803 Requisites & Supplies 12,287 11,442 Wages 357, , , ,623 NET PROFIT 84, ,053 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached disclaimer of Booth Partners. Page 37

44 SUPPLEMENTARY INFORMATION DEPARTMENTAL PROFIT AND LOSS STATEMENT Note $ $ INCOME Bar Trading 224, ,452 Poker Machine Trading 209, ,690 TAB & Keno Trading 51,685 64,496 Restaurant Trading 84, ,053 Interest Received 1,790 1,858 Members Subscriptions 793 4,912 Sundry Income 259,987 37, , ,881 LESS : EXPENDITURE Accounting & Audit Services 16,000 16,000 Advertising & Sponsorships 7,226 10,353 Affiliation Fees 3,301 3,186 Bad Debts Bank Fees & Charges 17,771 16,612 Borrowing Costs Cleaning Materials & Laundry 51,743 53,489 Computer Expenses 3,764 2,678 Costs of fire damage 578,837 - Depreciation and Amortisation 47,370 58,127 Directors Expenses 1, Donations 2,066 2,871 Electricity & Gas 45,461 62,113 Entertainment & Promotion Expenses 104, ,690 Fees & Licences 1,213 1,646 General Expenses 23,513 16,621 Insurance 44,545 47,386 Interest Paid 23,730 34,535 Members Benefits The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached disclaimer of Booth Partners. Page 38

45 SUPPLEMENTARY INFORMATION DEPARTMENTAL PROFIT AND LOSS STATEMENT Note $ $ Motor Vehicle Expenses 4,978 4,101 Printing & Stationery 22,959 20,605 Provision for Annual Leave 1,574 4,396 Provision for Long Service Leave (85) (2,937) Rates 5,338 5,145 Rent 20,495 21,783 Repairs & Maintenance 28,515 35,689 Security Costs 4,200 6,473 Sporting Club Subsidies 782 1,364 Staff Training and Uniforms 5,372 4,270 Subscriptions Superannuation 60,557 56,498 Telephone - Club 8,965 7,116 Wages - General & Administration 110, ,565 Water Rates 8,148 8,560 1,256, ,920 OPERATING PROFIT (422,754) 11,961 The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached disclaimer of Booth Partners. Page 39