ANNUAL REPORT AND FINANCIAL STATEMENTS

Transcription

1 ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDING 31ST AUGUST 2016

2 (A Company Limited by Guarantee) FINANCIAL REPORT FOR THE YEAR ENDED 31 AUGUST 2016 CONTENTS PAGE NO Notice of the Annual General Meeting 3 President's Report 4 Secretary/Manager s Report 5 Appendix A Financial Report 1-24 Appendix B Sub Club Financial Reports 1-7 2

3 NOTICE OF THE ANNUAL GENERAL MEETING 11th DECEMBER 2016 Notice is hereby given that the Annual General Meeting of the will be held in the clubhouse on SUNDAY 11th of DECEMBER 2016, commencing at a.m. Business: 1. Apologies. 2. Confirmation of minutes of previous Annual General Meeting. 3. President s Report and Secretary/Manager s Report. 4. To receive, consider and adopt the Directors Report and Directors Statement. 5. To receive, consider and adopt the Financial Statements and Independent Audit Report to the Members for the year ended 31 August, To consider and, if thought fit, pass the Special Resolution to amend the Constitution to restrict the number of Life Members to 14 at any one time by adding the following clause after the heading:- Rule 4 (1)(b) LIFE MEMBERS The number of Life Members be restricted to no more than fourteen (14) at any one time. (A Special Resolution requires to be passed by a least 75% of the votes cast by members entitles to vote on the resolution) 7. To consider the nomination of Suzanne Cotterill for Life Membership of the Tathra Beach Country Club Limited as recommended by the Board of Directors. (To be passed requires at least three fourths of the votes cast at the AGM) 8. To elect the Directors for one year or two years. The following nominations have been received: PRESIDENT: VICE PRESIDENT: HONORARY TREASURER: DIRECTORS: (6 POSITIONS) George ALNIS Colleen BENNETT Paul HARE Ray BAIRD John GARDNER Helen GROCH George KENNAUGH Trevor MACE Patricia WESTMORE 9. To appoint the Patron for the forthcoming year. 10. To approve honorariums for the President and Treasurer. 11. To deal with any other business for which due notice has been received. NOTE : Members are requested to notify the Secretary in writing seven (7) days prior to the Annual General Meeting, of any query relating to the financial statements on which further information is required. Such information will be extracted from the records and will be available at the Annual General Meeting. By order of the Board Tathra, 2 November

4 PRESIDENT S REPORT The Trading Figures in this report reflect the constantly changing economic climate with an increase in bar takings and a reduction in poker machine takings for the year directly opposite in each category to last year. The staff related matters created a substantial increase in salaries and wages during the year. The Club is maintaining its policy in providing up-to-date Poker Machines for use by our members and guests. As I do every year, with good reason, I would like to thank the volunteers associated with the committees of our Sub-Clubs being the Ladies and Mens Golf Clubs and Tennis Club for their continuing efforts during the past year in organising and conducting events which attract participation from members of other Clubs, our members and the general community. All members of the Club should appreciate the efforts by these volunteers that keep the Club on track in pursuing its objectives in providing quality sporting facilities for members and the community. The Club members should appreciate the efforts of our Secretary/Manager, Tony Brunton, for his personal efforts during the year which again included participation in all kinds of building projects with assistance from volunteers. Tony indicated during the year that he is planning on retirement in July/August this year. To this end he then engaged in trying to locate a suitable replacement in accordance with the criteria set out by the Board. He found a suitable replacement in Ben Potter. Tony then introduced Ben to all aspects of our Club management and responsibilities to the Board over a period of time resulting in Ben being appointed the Secretary/Manager of the Club by the NSW Independent Liquor and Gaming Authority on 5 th August, During the year we have experienced staffing upheavals in our permanent employees, we have four, not counting our Secretary/Manager Tony, we have had extended sick leave for one of our greenkeepers Peter Smith and our Assistant Manager Garry Newton. Hopefully all staff will be fully recovered and operational by this year s AGM. All members and their guests appreciate and thank our Assistant Manager, Garry, and his indoor staff in making the Club a pleasant place to visit for refreshments and participation in indoor activities such as Members Badge draws, raffles, Tipping Competitions, pool, snooker and darts. The Club appreciates the excellent work being done by the Greenkeepers who are responsible for maintaining our golf course, playing fields and tennis courts to the best possible standard as well as our indoor staff for maintaining and providing a pleasant atmosphere in the clubhouse as indicated by the members and visitors enjoying those facilities. I would like to thank every member of the Board for their personal input to some of the changing aspects of management during the year. Hopefully our decisions will be the right ones for the ongoing satisfactory operation of the Club in the future in the interest of our members. George Alnis President. 4

5 SECRETARY/MANAGER S REPORT I am pleased to submit the financial report for 2015/16 for your consideration. Although I have only been here at the Country Club for the previous three months to the End of Year, working in the club industry I am fully aware of the challenging period clubs are experiencing. Therefore I am pleased to announce a small operating loss for the year of 9,833. Although it is a loss, the club remains in a sound financial position. The continued survival of this great little club is due to the support you the members give and I ask and hope you will continue to support myself and my team throughout the next year. I would like to introduce myself to the members of our club who I have not yet met. My name is Ben Potter; I am married with three children and live in our local community. I have 20 years experience in the club/pub industry and I am looking forward to using my experience to enhance our members and visitors usage of our great facility we have here at Tathra. To the members that I already know and have met, thank you for the warm welcome to my new role. I would like to congratulate Tony Brunton for the wonderful job he has done here at the club for the previous years and thank him immensely for his guidance and support in our changeover period. I wish him all the best for the future and as most of you members know his effort and skill he put into the club will be hard to match. I have inherited Tony s volunteer army who help open the club on various days of the week and numerous other volunteers throughout the club doing there bit. Thank you so much and I look forward to working with you in the future. You all help make this club thrive and the cost benefit is immeasurable. To George and the club s Board of Directors, thank you for your initial support, I already enjoy working with you making our club as strong as possible. I also appreciate all the helpers involved with our various Sub-clubs. Anything I can do to help please ask. As for membership numbers, we currently have: Life Members 12 Full Members 514 Social Members 683 Junior Members 39 TOTAL 1248 The Board and Management continue their long term strategy of providing our members and guests with quality sporting and club facilities. In the upcoming year we are looking to create further Golf cart spots to accommodate the current waiting list. We will also be updating the Bar service area of the clubhouse and also some other ideas that will only enhance our already great facility here at Tathra Beach Country Club. Ben Potter Secretary Manager 5

6 (A Company Limited by Guarantee) APPENDIX A Financial Statements Contents For the Year Ended 31 August 2016 Financial Statements Directors' Report 2 Auditors Independence Declaration under Section 307C of the Corporations Act Statement of Profit or Loss and Other Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements 10 Directors' Declaration 18 Independent Audit Report 19 Supplementary Information 20 Page

7 Directors' Report 31 August 2016 The directors present their report on for the financial year ended 31 August General information Information on directors The names of each person who has been a director during the year and to the date of this report are: George ALNIS Occupation / Qualifications Retired Police Officer Appointment date 22 November 1995 Special responsibilities President Colleen BENNETT Occupation / Qualifications Accounts Manager Appointment date 6 December 2014 Special responsibilities Vice President Paul HARE Occupation / Qualifications Retired Office Manager Appointment date 24 November 2002 Special responsibilities Treasurer Helen GROCH Occupation / Qualifications Retired Admin Manager Appointment date 25 November 2001 Raymond BAIRD Occupation / Qualifications Company Director Appointment date 24 November 1999 John GARDNER Occupation / Qualifications Retired Teacher Appointment date 2 December 2012 George KENNAUGH Occupation / Qualifications Retired Salesperson Appointment date 2 December 2012 Patricia WESTMORE Occupation / Qualifications Retired Company Director Appointment date 27 May 2015 James HUTSON Occupation / Qualifications Retired Technician Resignation date 6 December 2015 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. 2

8 Directors' Report 31 August 2016 Principal activities The principal activity of during the financial year was that of a Licensed Club and provision of sporting facilities in Tathra. No significant changes in the nature of the Company's activity occurred during the financial year. Short and long term objectives The Company's short and long term objectives are to continue to provide quality Club and sporting facilities in Tathra for the benefit of members and guests. Strategy for achieving the objectives To achieve these objectives, the Company adopts current registered club industry practices. Performance measures The following measures are used within the Company to monitor performance: the quality of the service and facilities provided to members; the ability to generate strong cash flows from its operating activities; the trading and overall financial result; and the stability of the balance sheet with respect to the Company s liquidity. Members guarantee is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each members and any person who ceased to be a member in the year prior to the winding up is limited to 2, subject to the provisions of the company's constitution. At 31 August 2016 the collective liability of members was 2,496 (2015: 2,474). 3

9 Directors' Report 31 August Other items Meetings of directors During the financial year, 12 meetings of directors were held. Attendances by each director during the year were as follows: Directors' Meetings Number eligible to attend Number attended George ALNIS Raymond BAIRD Colleen BENNETT Helen GROCH 12 9 John GARDNER 12 8 Paul HARE George KENNAUGH 12 6 Patricia WESTMORE James HUTSON 4 4 Auditor's independence declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 31 August 2016 has been received and can be found on page 5 of the financial report. Signed in accordance with a resolution of the Board of Directors: Director:... George ALNIS Director:... Colleen BENNETT Dated 2 November

10 ABN Auditors Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Tathra Beach Country Club Limited I declare that, to the best of my knowledge and belief, during the year ended 31 August 2016, there have been: (i) (ii) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. KOTHES Chartered Accountants SIMON BYRNE Partner Registered Company Auditor (#153624) TATHRA 2 November 2016 Independent Regional Member of Walker Wayland Australasia Limited, a network of independent accounting firms BEGA 163 Auckland St BEGA NSW 2550 Ph (02) BERMAGUI Shop 4/2 Wallaga St BERMAGUI NSW 2546 Ph (02) BOMBALA 75 Caveat St BOMBALA NSW 2632 Ph (02) COOMA 57 Massie St COOMA NSW 2630 Ph (02) EDEN Suite 2, 161 Imlay St EDEN NSW 2551 Ph (02) JINDABYNE Nuggets Crossing JINDABYNE NSW 2627 Ph (02) MERIMBULA 77 Main St MERIMBULA NSW 2548 Ph (02) Our web site is 5 Liability limited by a scheme approved under Professional Standards Legislation

11 Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 August 2016 Note Revenue 4 1,283,505 1,261,100 Other income - surplus on disposal of fixed assets 3,436 21,170 Cost of sales (296,027) (274,118) Employee benefits expense (557,090) (556,304) Depreciation and amortisation expense (98,244) (103,797) Administration expenses (12,879) (15,580) Auditors remuneration (14,195) (14,145) Golf cart rental (15,413) (10,275) Donations and sponsorships (6,491) (11,514) Light and power (32,620) (40,943) Insurance (27,044) (26,043) Members entertainment expenses (69,969) (59,385) Permits, licences, subscriptions and fees (21,101) (16,392) Repairs and maintenance (104,101) (85,204) Rent and rates (18,740) (40,985) Other expenses (22,860) (22,621) Result before income tax (9,833) 4,964 Income tax expense 2(a) - - Result after income tax (9,833) 4,964 Other comprehensive income for the year, net of tax - - Total comprehensive income for the year (9,833) 4,964 The accompanying notes form part of these financial statements. 6

12 Statement of Financial Position 31 August 2016 Note ASSETS CURRENT ASSETS Cash and cash equivalents 6 547, ,424 Trade and other receivables 7 14,828 19,811 Inventories - stock on hand 28,995 30,243 TOTAL CURRENT ASSETS 591, ,478 NON-CURRENT ASSETS Property, plant and equipment 8 1,162,642 1,187,752 TOTAL NON-CURRENT ASSETS 1,162,642 1,187,752 TOTAL ASSETS 1,754,287 1,806,230 LIABILITIES CURRENT LIABILITIES Trade and other payables 9 108, ,904 Provision for poker machine jackpots 2,045 - Employee benefits , ,336 TOTAL CURRENT LIABILITIES 211, ,240 TOTAL LIABILITIES 211, ,240 NET ASSETS 1,543,157 1,552,990 EQUITY Retained earnings 1,543,157 1,552,990 TOTAL EQUITY 1,543,157 1,552,990 The accompanying notes form part of these financial statements. 7

13 Statement of Changes in Equity For the Year Ended 31 August Retained Earnings Total Balance at 1 September ,552,990 1,552,990 Result attributable to members of the entity (9,833) (9,833) Balance at 31 August ,543,157 1,543, Retained Earnings Total Balance at 1 September ,548,026 1,548,026 Result attributable to members of the entity 4,964 4,964 Balance at 31 August ,552,990 1,552,990 The accompanying notes form part of these financial statements. 8

14 Statement of Cash Flows For the Year Ended 31 August 2016 Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and members 1,394,274 1,408,878 Payments to suppliers and employees (1,355,979) (1,293,525) Interest received 10,801 15,835 Net cash provided by/(used in) operating activities 49, ,188 CASH FLOWS FROM INVESTING ACTIVITIES: Payments for property, plant and equipment (76,609) (97,005) Proceeds from sale of property, plant & equipment 6,911 23,945 Net cash used by investing activities (69,698) (73,060) CASH FLOWS FROM FINANCING ACTIVITIES: Net increase/(decrease) in cash and cash equivalents held (20,602) 58,128 Cash and cash equivalents at beginning of year 568, ,296 Cash and cash equivalents at end of financial year 6 547, ,424 The accompanying notes form part of these financial statements. 9

15 Notes to the Financial Statements For the Year Ended 31 August 2016 The financial report covers as an individual entity. is a not-for-for profit Company limited by guarantee, incorporated and domiciled in Australia. The functional and presentation currency of is Australian dollars. The financial report was authorised for issue by the Directors on 2 November Comparatives are consistent with prior years, unless otherwise stated. 1 Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act Summary of Significant Accounting Policies (a) Income Tax The Company is a Not for Profit Entity with a main objective of providing quality sporting facilities for the playing and promotion of various sports in Tathra. The Board has reviewed its income tax status and have assessed the company to be exempt from income tax under section of the Income Tax Assessment Act, 1997 (Cth). Consequently, no provision for taxation has been made in the financial statements. (b) Leases Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term. (c) Revenue and other income Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied. Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates. All revenue is stated net of the amount of goods and services tax (GST). Sale of goods Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time when risks and rewards are transferred and there is no longer any ownership or effective control over the goods. Donations Donations and bequests are recognised as revenue when received. Interest revenue Interest is recognised using the effective interest method. 10

16 Notes to the Financial Statements For the Year Ended 31 August Summary of Significant Accounting Policies continued Rental income Investment property revenue is recognised on a straight-line basis over a period of the lease term so as to reflect a constant periodic rate of return on the net investment. Subscriptions Revenue from the provision of membership subscriptions is recognised on a straight line basis over the subscriptions year. Gain on disposal of non-current assets When a non-current asset is disposed, the gain or loss is calculated by comparing proceeds received with its carrying amount and is taken to profit or loss. Other income Other income is recognised on an accruals basis when the Company is entitled to it. (d) Goods and Services Tax (GST) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. (e) Inventories Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined using the first-in-first-out basis and is net of any rebates and discounts received. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the reporting date and inventory is written down through an obsolescence provision if necessary. (f) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment. Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value. Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. 11

17 Notes to the Financial Statements For the Year Ended 31 August Summary of Significant Accounting Policies continued (f) Property, Plant and Equipment continued Buildings Buildings are measured using the cost model. Plant and equipment Plant and equipment are measured using the cost model. Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Company, commencing when the asset is ready for use. Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life. The estimated useful lives used for each class of depreciable asset are shown below: Fixed asset class Useful life Buildings 40 years Plant and Equipment 3 to 15 years At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate. (g) Financial instruments Financial instruments are recognised initially using trade date accounting, i.e. on the date that the Company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred). Impairment of financial assets At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired. (h) Cash and cash equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value. 12

18 Notes to the Financial Statements For the Year Ended 31 August Summary of Significant Accounting Policies continued (i) Employee benefits Provision is made for the Company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss. (j) Adoption of new and revised accounting standards During the current year, the following standards became mandatory and have been adopted retrospectively by the Company: - AASB Amendments to Australian Accounting Standards Part C financial instruments - AASB Amendments to Australian Accounting Standards Application of AASB 9 The adoption of these new Standards and Interpretations has not resulted in any changes to the Company s accounting policies that have affected the amounts reported for the current or prior year. 3 Critical Accounting Estimates and Judgments The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. There are no areas that involve a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements other than those described in the accounting policies. 13

19 Notes to the Financial Statements For the Year Ended 31 August Revenue Revenue from continuing operations Operating activities - Sale of goods 974, ,594 - Keno commission 15,463 11,176 - Green fees, court and equipment hire 97,944 98,643 - Rent - Cart shed and kitchen 11,773 8,595 - Member subscriptions 100, ,690 1,199,506 1,195,698 Finance income - Interest received 10,820 13,713 Other revenue - ATM commission 4,767 5,179 - Reimbursements from sub clubs 50,569 22,932 - Donations - 2,000 - Other revenue 17,843 21,578 73,179 51,689 Total Revenue 1,283,505 1,261,100 5 Result for the Year (a) Expenses Depreciation and Amortisation Buildings 52,754 53,362 Plant and equipment 14,441 15,348 Course equipment 12,380 11,620 Poker machines 18,669 23,467 Total Depreciation and Amortisation 98, ,797 Employee benefits expense 557, ,304 6 Cash and cash equivalents Cash at bank and in hand 217, ,236 Short-term bank deposits 330, , , ,424 The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows. 14

20 Notes to the Financial Statements For the Year Ended 31 August Trade and other receivables CURRENT Sundry debtors 7,469 12,080 Prepayments 6,571 6,962 Accrued interest Total current trade and other receivables 14,828 19,811 8 Property, plant and equipment Buildings At cost 1,697,547 1,687,289 Accumulated depreciation (682,792) (630,256) Total buildings 1,014,755 1,057,033 PLANT AND EQUIPMENT Plant and equipment At cost 243, ,600 Accumulated depreciation (211,230) (196,789) Total plant and equipment 32,445 34,811 Course equipment At cost 258, ,859 Accumulated depreciation (196,266) (183,887) Total Course equipment 61,865 54,972 Poker machines At cost 320, ,786 Accumulated depreciation (266,500) (279,850) Total Poker machines 53,577 40,936 Total plant and equipment 147, ,719 Total property, plant and equipment 1,162,642 1,187,752 (a) Land and Buildings Buildings and related leasehold improvements were valued for insurance purposes on 19 November 2013 by a Registered Valuer. This value far exceeded the book value that is carried in the financial statements. The land associated with the clubhouse and surrounding grounds is under perpetual lease with the Department of Crown Lands. 15

21 Notes to the Financial Statements For the Year Ended 31 August Property, plant and equipment continued (b) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Buildings Plant and Equipment Course equipment Poker machines Total Year ended 31 August 2016 Balance at the beginning of the year 1,057,033 34,811 54,972 40,936 1,187,752 Additions 13,951 12,075 19,273 31,310 76,609 Disposals (3,475) (3,475) Depreciation expense (52,754) (14,441) (12,380) (18,669) (98,244) Balance at the end of the year 1,014,755 32,445 61,865 53,577 1,162,642 9 Trade and other payables CURRENT Trade payables 47,750 23,456 Members' subs and cart shed rent in advance 28,856 28,608 GST payable 6,545 2,499 Accrued expenses 25,087 49, , , Employee Benefits Current liabilities Long service leave 51,708 87,521 Provision for annual and sick leave 49,139 61, , , Leasing Commitments (a) Operating leases Minimum lease payments under non-cancellable operating leases: - not later than one year 16,954 16,954 - between one year and five years 21,192 38,146 38,146 55,100 The Company leases electric golf carts under a cancellable operating lease. The Company is required to give notice for the termination of this lease. 16

22 Notes to the Financial Statements For the Year Ended 31 August Members' Guarantee The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of 2 each towards meeting any outstandings and obligations of the Company. At 31 August 2016 the number of members was 1,248 (2015: 1,237). 13 Contingencies In the opinion of the Directors, the Company did not have any contingencies at 31 August 2016 (31 August 2015:None). 14 Related Parties (a) The Company's main related parties are as follows: (i) Key management personnel: The Company is run by the Board of Directors. All major business decisions are made by the Board. The day to day business of the Company is run by the employees of the Company. As all major business decisions are made by the Board, no key management personnel disclosures are deemed appropriate. (ii) Other related parties include close family members of key management personnel and entities that are controlled. Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members. (b) Transactions with related parties The directors did not receive any remuneration from the company during the year other than reimbursement of out of pocket expenses in the form of honorariums that have been fully substantiated. 15 Events Occurring After the Reporting Date The financial report was authorised for issue on 2 November 2016 by the Board of Directors. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years. 17

23 Directors' Declaration The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 6 to 17, are in accordance with the Corporations Act 2001 and: a. comply with Accounting Standards - Reduced Disclosure Requirements; and b. give a true and fair view of the financial position as at 31 August 2016 and of the performance for the year ended on that date of the Company. 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:... Director:... George ALNIS Colleen BENNETT Dated 2 November

24 ABN Independent Audit Report to the members of Tathra Beach Country Club Limited Report on the Financial Report We have audited the accompanying financial report of, which comprises the statement of financial position as at 31 August 2016, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration. Directors' Responsibility for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company s preparation of the financial report that gives a true and fair view 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 Company 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 report. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act Opinion In our opinion the financial report of is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Company s financial position as at 31 August 2016 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations KOTHES Chartered Accountants SIMON BYRNE Partner Registered Company Auditor (#153624) TATHRA 2 November 2016 Independent Regional Member of Walker Wayland Australasia Limited, a network of independent accounting firms BEGA 163 Auckland St BEGA NSW 2550 Ph (02) BERMAGUI Shop 4/2 Wallaga St BERMAGUI NSW 2546 Ph (02) BOMBALA 75 Caveat St BOMBALA NSW 2632 Ph (02) COOMA 57 Massie St COOMA NSW 2630 Ph (02) EDEN Suite 2, 161 Imlay St EDEN NSW 2551 Ph (02) JINDABYNE Nuggets Crossing JINDABYNE NSW 2627 Ph (02) MERIMBULA 77 Main St MERIMBULA NSW 2548 Ph (02) Our web site is Liability limited by a scheme approved under Professional Standards Legislation

25 Supplementary Information For the Year Ended 31 August 2016 ABN The additional financial data presented on pages is in accordance with the books and records of the Company which have been subjected to the auditing procedures applied in our statutory audit of the Company for the year ended 31 August It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than ) in respect of such data, including any errors of omissions therein however caused. KOTHES Chartered Accountants SIMON BYRNE Partner Registered Company Auditor (#153624) TATHRA 2 November 2016 Independent Regional Member of Walker Wayland Australasia Limited, a network of independent accounting firms BEGA 163 Auckland St BEGA NSW 2550 Ph (02) BERMAGUI Shop 4/2 Wallaga St BERMAGUI NSW 2546 Ph (02) BOMBALA 75 Caveat St BOMBALA NSW 2632 Ph (02) COOMA 57 Massie St COOMA NSW 2630 Ph (02) EDEN Suite 2, 161 Imlay St EDEN NSW 2551 Ph (02) JINDABYNE Nuggets Crossing JINDABYNE NSW 2627 Ph (02) MERIMBULA 77 Main St MERIMBULA NSW 2548 Ph (02) Our web site is Liability limited by a scheme approved under Professional Standards Legislation

26 For the Year Ended 31 August 2016 Profit and Loss Account Income Gross profit on bar trading 354, ,175 Gross profit on sundry bar trading 4,361 9,169 Gross profit on poker machine trading 230, ,461 Amusement and vending machines 4,508 4,956 ATM commission 4,767 5,179 Donations - 2,000 Equipment hire 50,539 45,789 Fuel tax rebate 4,100 4,304 Green fees 45,146 49,366 Insurance recoveries 1,033 - interest received 10,820 13,713 Keno commission 15,463 11,176 Member subscriptions 100, ,690 Members entertainment 60,746 57,884 Profit on disposal of assets 3,436 21,170 Reimbursements from sub clubs 50,569 22,932 Rent - Cart shed 4,545 1,505 Rent - Kitchen 7,227 7,091 Solar rebate 7,539 10,258 Sundry income 664 2,059 Tennis court hire 2,260 3,487 Total income 962, ,364 21

27 For the Year Ended 31 August 2016 Profit and Loss Account Less: Expenses Administration expenses 12,879 15,580 Advertising and promotions 5,606 4,480 Amortisation 52,754 53,362 Auditors remuneration 14,195 14,145 Bank charges 2,197 2,303 Bus expenses 8,664 6,973 Cleaning 13,992 12,583 Clubhouse requisites 4,102 5,602 Depreciation 26,821 26,968 Donations and sponsorships 6,491 11,514 General expenses 1,788 1,272 Golf cart rental 15,410 10,275 Honorariums 5,200 5,000 Insurance 27,044 26,043 Keno Expenses 1,192 1,182 Light and power 32,620 40,943 Long service leave (35,813) 5,318 Members draw 8,623 8,982 Members entertainment expenses 52,682 43,430 Permits, licences, subscriptions and fees 21,101 16,392 Printing, postage and stationery 1,495 1,477 Rates and taxes 2,946 25,494 Refreshments - Directors, staff, & volunteers 6,303 6,764 Rent 15,794 15,491 Repairs and maintenance 73,671 54,740 Salaries and wages 523, ,703 Security costs 1,378 1,953 Staff O,H&S and training expenses Staff meal expenses 5,594 6,560 Superannuation contributions 49,060 42,436 Telephone 4,861 5,818 Workers compensation insurance 9,746 10, , ,400 Result before income tax (9,833) 4,964 22

28 For the Year Ended 31 August 2016 Detailed trading accounts Bar Trading Account Income Sales 637, ,475 Cost of sales Purchases 278, ,317 Gas and freight 3,345 4,292 Cost of goods sold 282, ,609 Gross profit 355, ,866 Less: Direct expenses Wastage 1, Net profit / (loss) 354, ,175 Sundry Bar Trading Account Income Sales 17,082 20,988 Cost of sales Purchases 12,365 11,139 Cost of goods sold 12,365 11,139 Gross profit 4,717 9,849 Less: Direct expenses Wastage Net profit / (loss) 4,361 9,169 Poker Machine Trading Account Income Poker machine income 241, ,067 Poker machine GST rebate 17,180 17, , ,247 Less: Direct expenses Depreciation 18,669 23,467 Repairs and maintenance 9,336 9,319 28,005 32,786 Net profit / (loss) 230, ,461 23

29 For the Year Ended 31 August 2016 Comparative Figures Bar Sales 611, , , , ,697 (Gross Margin %) (54.1) (53.5) (55.2) (54.9) (55.8) Poker Machine Receipts 263, , , , ,386 Wages Paid 456, , , , ,562 Operating Result 8,858 (31,208) 63,472 4,965 (9,833) Expenditure on Club Assets 114, ,664 85,558 97,005 76,609 Net Assets 1,515,761 1,484,553 1,548,025 1,552,990 1,543,157 DONATIONS Organisations donated to throughout the year included: Bega High School Tathra Public School Bega & District Nursing Home Ltd Sapphire Coast Turf Club Legacy Tathra Hospital Aux. Tathra Amateur Fishing Club George Bass Surfboat Marathon Tathra Sunshine Club 24

30 ABN APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 On the basis of the information provided by the sub-clubs, we have compiled in accordance with APES 315 Compilation of Financial Information, the Tathra Beach Country Club sub-club special purpose financial reports for the year ended 31 August 2016, as set out on the following pages. The sub-club special purpose financial reports have been prepared from the books and records of the sub-clubs by the committees of the individual sub-clubs, exclusively for the use and benefit of the sub-club members and committees. The terms of our engagement did not include any validation or verification procedures. No audit has been performed and accordingly no opinion is expressed. KOTHES Chartered Accountants SIMON BYRNE Partner Registered Company Auditor (#153624) TATHRA 2 November 2016 Independent Regional Member of Walker Wayland Australasia Limited, a network of independent accounting firms BEGA 163 Auckland St BEGA NSW 2550 Ph (02) BERMAGUI Shop 4/2 Wallaga St BERMAGUI NSW 2546 Ph (02) BOMBALA 75 Caveat St BOMBALA NSW 2632 Ph (02) COOMA 57 Massie St COOMA NSW 2630 Ph (02) EDEN Suite 2, 161 Imlay St EDEN NSW 2551 Ph (02) JINDABYNE Nuggets Crossing JINDABYNE NSW 2627 Ph (02) MERIMBULA 77 Main St MERIMBULA NSW 2548 Ph (02) Our web site is Liability limited by a scheme approved under Professional Standards Legislation

31 APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 TATHRA BEACH COUNTRY CLUB GOLF MEMBERS - MEN INCOME STATEMENT FOR THE YEAR ENDED 31 AUGUST 2016 GENERAL WORKING ACCOUNT Income Competition fees 62, , Members trophy donations Raffles - Saturday 6, , Sales - Clothing Shootout Catering 1, , Special events Sponsorship 10, , Sundries JPO , , Expenses Catering 5, , Clothing Electricity 7, , Golf balls 3, , Golf link / Phone Pennant expenses Printing, postage & stationery 2, , Raffle expenses 5, , Special events 2, , Sponsorship signs & materials 1, , Sundry expenses Travel expenses Trophies & Prizes 33, , JPO Course improvements & machinery 3, , , SURPLUS OF INCOME OVER EXPENDITURE FOR THE YEAR 16, , ========== ========== 2

32 APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 TATHRA BEACH COUNTRY CLUB GOLF MEMBERS - MEN CAPITAL AND CURRENT ACCOUNTS BALANCE SHEET AS AT 31 AUGUST Opening Balance 111, , Surplus for year General working account 16, , , , Non-Operating Transfers Contributions P & D Account (10,000.00) (9,300.00) FUNDS AVAILABLE 117, , ========== ========== REPRESENTED BY Current Assets National Australian Bank Account 117, , TOTAL ASSETS 117, , NET ASSETS 117, , ========== ========== 3

33 APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 TATHRA BEACH COUNTRY CLUB LADY GOLF MEMBERS INCOME STATEMENT FOR THE YEAR ENDED 31 AUGUST Income Annual dinner Ball competition -- 9, Catering Competition fees 32, , District open entries 2, , Donations , FSC & TGA lunch 1, , Fundraising 1, , Interest Raffles 2, , Sales Shirts & merchandise TBCC ladies open 4, , Trading table 1, , Yearly fees 3, , , , Expenditure Catering Donations 2, , FSC & TGA catering Golf balls 3, , Golf entries 2, , Golf NSW Fees Ladies annual dinner , Ladies open expenses 1, Pennant expenses 1, Postage & stationery Raffles Sundry expenses Travel Trophies / Vouchers 12, , Veteran Women Golf annual fees , , SURPLUS OF INCOME OVER EXPENDITURE FOR THE YEAR 22, , ========== ========== 4

34 APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 TATHRA BEACH COUNTRY CLUB LADY GOLF MEMBERS CAPITAL AND CURRENT ACCOUNTS BALANCE SHEET AS AT 31 AUGUST Opening Balance 43, , Surplus for year General working account 22, , , , Non-Operating Transfers Contributions P & D Account (9,000.00) (9,000.00) FUNDS AVAILABLE 57, , ========== ========== REPRESENTED BY Current Assets Cash on hand Petty cash Undeposited funds 3, , National Australian Bank Bank Account 32, , National Australian Bank Term Deposits 20, , TOTAL ASSETS 57, , NET ASSETS 57, , ========== ========== 5

35 APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 TATHRA BEACH COUNTRY CLUB GOLF MEMBERS PROGRESS & DEVELOPMENT ACCOUNT INCOME STATEMENT FOR THE YEAR ENDED 31 AUGUST Income Contributions TBCC Ladies Golf 9, , Contributions TBCC Men s Golf 10, , Interest Received Sponsorship , , Expenditure Bank charges TBCC Machinery Purchase 40, , , , (DEFICIT) / SURPLUS OF INCOME OVER EXPENDITURE FOR THE YEAR (21,406.86) 6, ========== ========== CAPITAL ACCOUNT BALANCE SHEET AS AT 31 AUGUST 2016 Opening Balance 40, , (Deficit) / Surplus for year (21,406.86) 6, FUNDS AVAILABLE 18, , ========== ========== REPRESENTED BY Current Assets Horizon - P & D Bank A/Cs & Term Deposit 18, , NET ASSETS 18, , ========== ========== 6

36 APPENDIX B SUB CLUB FINANCIAL REPORTS 31 August 2016 Income TATHRA BEACH COUNTRY CLUB TENNIS CLUB FINANCIAL STATEMENT FOR THE YEAR ENDED 31 AUGUST Night tennis 3, , October tournament 4, , Sale of used tennis balls Interest received Interest received IMB Term Deposit 2, Sundry income , , Expenditure Tennis balls Tuesday comp October tournament 3, , Maintenance - Court repairs 4, Miscellaneous - drinks, groceries etc Sundries , , SURPLUS OF INCOME OVER EXPENDITURE FOR THE YEAR , Accumulated Funds as at 31 August , , ACCUMULATED FUNDS AS AT 31 AUGUST , , ========== ========== Represented By: Cash at IMB Working account 6, , IMB Term Deposit 62, , , , ========== ========== 7