ANNUAL REPORT Ocean Shores Country Club - Annual Report

Transcription

1 ANNUAL REPORT Ocean Shores Country Club - Annual Report

2 Ocean Shores Country Club Ltd Annual Financial Report For The Year Ended 30 June 2014 CONTENTS Directors' Notice of Annual Report Meeting 3 Auditor's Independence Declaration Membership 4 Income Statement Chairman s Report 5 Statement of Comprehensive Income General Manager s Report 6 Statement of Financial Position Treasurer s Report 7 Statement of Changes in Equity Mens Golf Report 9 Statement of Cash Flows Ladies Golf Report 10 Notes to the Financial Statements Men s Veteran Golf Report 11 Directors' Declaration Women s Bowls Report 12 Independent Audit Report Men s Bowls Report 14 Ocean Shores Country Club - Annual Report

3 NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the 45 th Annual General Meeting of Members will be held in the main lounge at the Clubhouse, Orana Road Ocean Shores NSW 2483 at 9am on Sunday 19 th October Agenda 1. Declare the 45 th Annual General Meeting open. 2. Attendance Roll 3. Apologies Ordinary Business 4. To receive and consider the minutes of the 44 th Annual General Meeting held on Sunday 27 th October To receive and consider the reports of the Directors and Auditors for the year ended 30 June To receive and consider the Financial Statements as at 30 June 2014 for the year ended on that date. (Any questions in regard to the contents of these reports are to be submitted in writing to the General Manager seven days prior to the AGM to enable a well-informed response to be made at the meeting) 7. To consider and approve benefits received by Directors and Committees Pursuant to Section 10(6) of the Registered Clubs Act To repay out of pocket expenses reasonably incurred by any member of the Board in the course of carrying out his or her duties for the Club provided that they are approved by the Board. 8. The members hereby approve and agree to the provision of a limited number of reserved car spaces in the Club s car park. 9. To deal with any other business for which due notice has been given. 10. To consider and approve benefits received by members who are accepted into the membership Category of Special Veterans for the membership year To elect the Board of Directors for in accordance with the Clubs Constitution. Members please note point(s) 7, 8 and 10: that members acknowledge that the above benefits are not available to members generally but only for those that are specified in the above resolutions. By order of the Board of Directors Andrew Spice, JP General Manager September 11, 2014 Ocean Shores Country Club - Annual Report

4 MEMBERSHIP The membership as at 30 June Life Member 1 1 Male Golf Female Golf Male Bowls Female Bowls Male Golf & Bowls Special Veteran Golfer (Male & Female) Special Vet Golf /Bowls (Male & Female) 9 8 Ordinary (Male & Female) 11 9 Male Country Golf Female Country Golf 4 5 Female Golf & Bowls 4 2 Social (Male & Female) Country Golf/Bowler (Male & Female) 0 1 Leave of Absence 0 0 Colt Golfers 7 11 Colt Golfer/Bowler 0 0 Mid Week Golfer (Male & Female) Mid Week Golfer/Bowler (Male & Female) Sub Total Golfer Junior (Male & Female) Golfer Cadet (Male & Female) 4 7 Junior Golfer/Bowler (Male & Female) 1 1 Cadet Golfer/Bowler (Male & Female) 0 0 Junior Bowls (Male & Female) 1 1 Cadet Bowler 1 1 Total Ocean Shores Country Club - Annual Report

5 CHAIRMAN S REPORT On behalf of the Board of Directors, I am pleased to report on the Club s operations and activities for the 2013/14 year. For a change the year was a relatively dry one and although Golf and Bowls operations did not improve markedly, all other areas, excluding House and Administration, saw increased profits. The club recorded a pleasing operating profit of $138,293. The Board and Management continue to investigate ways of cutting costs to reduce expenditure, however our facilities need to be maintained, making this a difficult task. The Board has received the recommendations of an energy efficiency audit. Following the audit, management is continually investigating where energy can be saved, setting benchmarks and initiating energy saving projects. Through our membership of the Office of Environment and Heritage Sustainability Advantage Program, we are learning how we can become more efficient in our use of lighting, air conditioning, heating, ventilation and refrigeration. Management and Directors have during the year undertaken various courses and modules to reach our goal of optimum energy efficiency. Staff are also being trained to be energy aware. Also from July 1, 2013, new Directors are required to undertake mandatory Director training within twelve (12) months of their appointment. All Directors will be subject to ongoing compliance requirements involving course and conference attendance, online subjects including Industry best practice, responsible service of alcohol, finance and resource development. This is a Government requirement with legislation to be phased in over three (3) years. I am pleased to report our Directors have fulfilled their obligations. I thank all the members who served on S.I.G. committees, with the Goonies, or in any other capacity. Your assistance has been invaluable. To our General Manager, Andrew, and his friendly and efficient staff, I convey the Board s appreciation for your efforts and dedication over the past year. Finally, I would like to thank my fellow Directors for their support, and the manner in which they undertook their individual duties. It has again been a pleasure to be Chairman of such an efficient and professional Board. Peter Tornaros Chairman Ocean Shores Country Club - Annual Report

6 GENERAL MANAGER S REPORT It is with a great deal of pleasure that I am able to report a profit of $138,293 for the year ending 30 June 2014, a vast improvement on last year s trading. Again the past year has seen good growth in Golf, Bowls & Social memberships, which is very pleasing and contrary to membership trends of the industry. None of the above can be achieved without the commitment and dedication of our Management Team and staff, thank you for your loyalty and courteous service you deliver to our members and guests. I also wish to acknowledge the continuing efforts by the Board of Directors who at all times have ensured that the Club remains financially viable and provides for its members. To the Club Chairman Peter Tornaros and the Board of Directors thank you for your support, commitment and hard work throughout the year. We are fortunate to have such a dedicated team of volunteers who lighten the work load. There are too many to name individually, but a big thank you to our many volunteers group, for your contributions over the year. Without your valuable input the club would not be where it is today. I would like to congratulate the various golf and bowls winners. Also thank you to those who represented the Club in Pennants, I am sure you all performed admirably. Many thanks to our caterer, Dino and his staff for the professional service and top quality food they provide through Meraki Bistro. It is pleasing that we continue to receive favorable reports on the service provided by Meraki Bistro. To you, the Club is here for members to enjoy and I thank you for your support during the past year. I encourage members to continue to participate in Club activities and enjoy the wonderful facilities the Club has to offer. Andrew Spice, JP General Manager Ocean Shores Country Club - Annual Report

7 TREASURER S REPORT OPERATING PROFIT $ 138,293 $ 29,114 DEPRECIATION $ 260,650 $ 268,750 LOSS ON DISPOSAL OF ASSETS $ - $ CONTRIBUTION AREAS Actual Actual BAR $283,825 $257,816 POKER MACHINES $761,712 $629,581 KENO $44,936 $33,770 GOLF -$48,507 -$55,963 BOWLS -$21,119 -$19,940 HOUSE -$539,356 -$493,175 ADMIN -$379,424 -$34,637 TAB -$8,518 -$5,258 HWH $16,546 $6,691 PRO SHOP $24,756 $11,115 MGC $760 $4,895 LGC -$436 $1,136 MVGC $901 $1,176 WBC $1,061 $2,539 MBC $1,155 $1,101 Total $138,293 $29,114 This was a very good result with the Club s financial position improving on last year. However for the Club s future to remain financially sound, the Board and Management must proceed with caution when preparing the operation budget and capital expenditure for the years ahead. Most areas of the Club performed near to or better than the budget forecast which was an excellent result. CAPITAL EXPENDITURE CAPITAL EXPENDITURE Solar System $ 85,268 Lot 1 Wirree Drive $ 46,483 Courtesy Bus $ 39,765 Roof Reinforcements for Solar $ 21,477 Air Conditioning $ 18,364 Round House Block Development $ 17,315 Roads Golf Course $ 16,897 Ocean Shores Country Club - Annual Report

8 Chemical & Fuel Storage Golf Course $ 13,065 Ice Machine $ 11,500 Capital Works In Progress $ 3,575 Note Counter & Coin Scales $ 3,500 Office Computer x 2 & Phone Station $ 3,399 E-Score $ 2,873 Pool Pumps and Cleaner $ 2,561 Web Site $ 2,273 Artificial Plants $ 2,270 Bunker Pump $ 2,000 Junior Bowls Equipment $ 1,180 Hire Pull Buggies $ 969 Office Desk x 2 $ 765 IPad $ 478 Total $ 295,977 The Club made several unbudgeted capital purchases during the financial year. The Board felt that these items were too important for the future of the Club not to proceed with, of these the three major purchases were:- 1. The instillation of a solar electricity system. This has resulted in a significant reduction to the Club s monthly electricity account, with early indications showing the system will have paid for itself within three years. 2. A new bus was purchased for the Club as the maintenance costs associated with keeping the previous bus operating had become excessive and the timing coincided with a more aggressive marketing/promotional strategy for the Club. 3. The purchase of Lot 1 Wirree Drive, Ocean Shores (vacant land adjacent to the 10 th fairway), at what was considered to be a reasonable price the Club gained control over the future of this parcel of land. I would like to thank the Finance Committee Les, Bob and Tom for their assistance. The General Manager, Andrew, and the office staff Trish, Anna and Amee, thank you for your help throughout the year. The Club staff, both outdoor and in house, you perform your duties in a professional and pleasant manner. The members, I would like to thank you for continuing to support your club. Anne Slater Treasurer Ocean Shores Country Club - Annual Report

9 MEN S GOLF REPORT Men s golf continued along a similar path to We experienced some great weather, which saw a lot more competition and social golf played during the year. One of our premier events, the Ocean Shores Cup is gaining wide recognition and continuing to grow. Our aim for this event is attract golfers from other clubs and showcase our course and facilities and it was great to see golfers from as far as Armidale and Brisbane play in this year s event. The committee s decision last year to change the format of the Club Championships and have a seeded match-play draw did not prove as popular as we expected. As such, the format has gone back to its original format of 4 rounds of stroke play. As with any decision, we can t please everyone. The structure of this year s Australia Day event will also be reviewed and, without burdening next year s committee with a decision, it looks likely that the format will be changed from a 3-day to a 2-day event. This has been driven by the lack of people entering the 3-day event. With everyone s busy lifestyles, most find it very difficult to devote 3 days over a holiday weekend to play golf. If this change is made, hopefully we will see an increase in participation and enjoyment of the event. Last year s Presentation Night was a great event with some great entertainment. Presentation Night is always popular and this year s event is not far away and it promises to be a great evening once again. The three course meal and drinks are, as always, subsidised by Men s Golf, so make sure you come along, organise a table with some friends and enjoy a great night out. The committee received some feedback this year in relation to the running of the game of golf. The members of the committee devote a lot of time and do a lot of work behind the scenes to make golf competitions a successful and enjoyable experience for our members. All the current committee members work full-time, so we are always looking for new ideas and assistance from members who want to contribute towards the running of Men s Golf. Please consider putting your name up for nomination at this year s Men s Golf AGM and help continue the great work done by past committees. To finish up my report I d like to thank those who play their part in making the game golf at Ocean Shores a truly enjoyable experience. Firstly, to my fellow committee members who volunteer their time and contribute their opinions and great ideas. To our superintendent, Shane and his staff the course is in mint condition and the improvements you are making to those previously unsightly areas are tremendous. Congratulations and thank you for the great work you do. To Chris and the staff in the Pro-shop, whose support and commitment never goes unnoticed. To our General Manager, Andrew, his staff and all the Board members for their valuable assistance during the year. And last, but certainly not least, I would like to thank our sponsors, the goonies and all the other volunteers and SIG members. My best wishes to you all for the coming year, both on and off the course. Stuart Brady President Ocean Shores Country Club - Annual Report

10 LADIES GOLF REPORT This has been a successful year for the Ladies Golf Club, as the weather has been perfect and the course in great condition. We had 2 pennant teams this year and the second division won the Northern Zone, but unfortunately was beaten in the final. Well done girls. The foursomes championship was won by Jacki Gray and Val Marsh. Popular winners of the Shootout were Gaye O Donnell and Michelle Murray. Congratulations to all. We were successful in winning the Chincogan Roller again this year, which was played at Mullumbimby. The Championships will be played in September and our current Champion Jacki Gray will be hard to beat. We also have to contest the Os/Mur Shield, which will be played at Ocean Shores in October. We have some new members and we hope that they are enjoying their golf at Ocean Shores. A special thankyou to Chris for his Wednesday morning clinics he has certainly tried to improve our golf. We appreciate your effort!! Sadly we lost our Patron, Jane Fry, and the original entertainment organiser, Hazel Sorrel, this year. I would like to take this opportunity to thank Shane and his team and, of course, the Goonies. The golf course has never looked so good and is a credit to all their hard work. Also a big thankyou to Andrew, Trish, Anna and Amee, to Col (nothing is too much trouble) Warner, to Chris, Trevor, Brad and Jacki in the Pro shop, to the lovely Chris in the HWH and to the Bar staff. A special thankyou to my hard working committee and to the Sponsors, who have supported us throughout the year. Sheila Brady President Ocean Shores Country Club - Annual Report

11 MEN S VETERANS GOLF REPORT Well another year has gone and really we have had some great golfing weather. The field sizes continue to be strong and I thank our members for their continued support. We welcome our new members and of course miss those who are no longer playing with us. Our presentations are fairly well attended but are getting harder to manage with the increase in field sizes; however we still try and persist and ask players to try and co-operate by playing the game as quickly as they can. The Open Day this year was well attended and we were blessed with great weather, again the lunch, provided by the restaurant, was well commented on by members and visitors. Numbers were down slightly on last year and may be as a result of an increasing number of Weeks of Golf being held in our region. While on the subject, I must thank Chris Graham and the staff from the Pro Shop and Office for their help in running the day. It certainly made our life a lot easier well done team. Results from the day gave us a morning winner Rodney Wade from Ocean Shores with 42 points and Paul Mc Cann from Byron won the afternoon field with 41 points. I also thank my Committee, Graeme Llewellyn (Capt.), Tony Cornell (V/Capt), Ted Carroll (V/Pres) and Bill Nichols (Secretary Treasurer) for the hard work they have put in over the year. I must also mention Tony Berry for the help he gave us to run the Open Day. I thank also the Country Club staff especially the girls in the office and Col, the Goonies, the Greens staff and Halfway House staff for their help and cooperation. To our patron and Vet s Life members Hank Gould and Ian Homfray I extend my thanks for their contributions. To all those that have helped us over the year and who I haven t mentioned thank you also. Finally to any members or prospective new members who are considering a game. You are all welcome to join us for what we hope is the fun day of the week with a good bunch of blokes. Results of our 2013 Championship were: Vet s Champion: Ian Smith Best Nett Fred Henry Division A: Peter Moyle Gross and Dick Hanks Nett Division B: John Bartlett Gross and Bryan Spruce Nett Division C: Stewart Carey Gross and Gordon de La Garde Nett Match Play: Mick Short and Runner up John Maddock Tony Dahl President Ocean Shores Country Club - Annual Report

12 WOMENS BOWLS REPORT As usual the year has gone very quickly and been very busy. We had two teams in Pennant grades, two and four, and while we didn t win the District we were very competitive, well done and better luck next year. We entered several teams in District events, with Barbara Sprengal getting to the semi-final and Barbara Sprengel, Lyn McGowan and Karen Gallard runner up in Triples. The District started The Versatile Sixes this year which was very popular with many entries. Joy Maree s team did very well with a good win and some nice prize money. Golfer Bowler day was good fun but not a lot of entries, we need to promote this event a bit more and encourage more entries. Club Championships are well under way with Barbara Sprengal winning the major singles and Margaret Hosie winning the minor singles. Glenys Johnston, Margaret Hosie, Maxine Farquhar, and Coral Timewell winning the fours, well done girls, all other events are in progress. Our Seahorse Triples and Gala Days were well attended with the weather being very kind to us and of course Dino s lunches are always a big hit. Running two friendships days in September proved very successful with members bringing friends and family and of course food, we hope to run more of these as requested by the visitors. The school children s sports day of bowls this term has seen more children taking part and they are all keen and competitive. Thanks to our many helpers both men and women. Sandcrabs on the third Sunday of the month hasn t been well attended, but the weather hasn t been too good this year. Visits on Sundays, from social bowling groups, continue with our club being a popular venue. It is difficult to get a lot of support from our bowlers especially the men but thanks to Danny we are now able to host the Gold Coast teachers. Coral Timewell has sold her house and moved North, we wish her good luck we will miss her and her work on the Match Committee. Maureen and Bob James have also sold their house and are moving on. They will be greatly missed as they have put so much of their time into the bowls for the last eight or nine years. They are both national umpires and Maureen is also a Coach and Secretary of Women s Bowls and has been involved in District work, we will miss them both and do wish them all the best. Thank you to all the sponsors they are really great and we must try and support their businesses. Ocean Shores Country Club - Annual Report

13 Troy has done well as our greenkeeper, the gardens have never looked better. Must also thank all the administration staff, bar staff and kitchen staff. Special thank you to Col as he is willing to do extra for us thanks heaps Thank you to Match and Social committee and to Pam as Treasurer of ladies bowls. Maureen Bertoli does great table decorations and cooks great scones. Must once again thank Maureen James for all her help and encouragement and wish her well. Judith Williams President Ocean Shores Country Club - Annual Report

14 MEN S BOWLS REPORT As our Men s Bowling Club rolls through 2014 we reflect on the year that has just passed (quickly). This was the year that the Ocean Shores bowlers rose to the competitive side of bowls and excelled with outstanding results, but more of that later. Our membership remains steady with good numbers at our regular competitions. The Club Championships are competitive and well attended. Our committee works well together to try and ensure everyone is happy and enjoys their bowls day. The Twilight bowls, during the summer months, as a weekly event was a huge drawcard for our social bowlers. Dave Whitney and Lochie Johnston turned it on again with a terrific fun night of bowls. We welcome new green keeper Troy Makin, a born and bred local. Troy did his apprenticeship at our clubs and brings his experience to our bowling greens and surrounds. As a bonus Troy is one of the gun bowlers in the state. On the competitive side of bowls, namely the Pennants and interclub Championships, our results were outstanding. Competing against bigger clubs, our No 3 Pennants side won against the best District sides to progress to the Zone finals. The Zone includes Clarence, Richmond, Tweed and Byron districts. The 3 s won well and progressed to the state finals in Sydney. The District v Zone Club Championships involve 4 divisions, namely singles, pairs, triples and 4 s. Our triples and 4 s teams won their way through the District and Zone finals. So they are off to Sydney also. Massive kudos and congratulations to our humble Pennants and Championship sides and good luck in Sydney. Our fundraising activities have been well supported. Bob James and his small crew of helpers as well as the golfing Goonies have been a big help when asked to work around the greens. And finally I thank our hard-core, regular Monday bowlers for their support. We d like to think that we are a welcoming friendly club and as such would encourage new members. We look forward to enjoying another good year at our Club. Mick Haines President Ocean Shores Country Club - Annual Report

15 OCEAN SHORES COUNTRY CLUB LTD Financial Report For The Year Ended 30 June 2014 Ocean Shores Country Club - Annual Report

16 Ocean Shores Country Club Ltd Financial Report For The Year Ended 30 June 2014 CONTENTS Directors' Directors Report Report 17 Auditor's Independence Declaration Auditor s Independence Declaration 20 Income Statement Income Statement 21 Statement of Comprehensive Income Statement of Comprehensive Income 22 Statement of Financial Position Statement of Financial Position 23 Statement of Changes in Equity Statement of Changes in Equity 24 Statement of Cash Flows Statement of Cash Flows 25 Notes to the Financial Statements Notes to the Financial Statements 26 Directors' Declaration Directors Declaration 36 Independent Audit Report Independent Audit Report 37 Ocean Shores Country Club - Annual Report

17 OCEAN SHORES COUNTRY CLUB LTD DIRECTORS' REPORT Your directors present this report on the company for the financial year ended 30 June 2014 Directors The names of each person who has been a director during the year and to the date of this report are: Peter Tornaros Leslie Hoffman Nicholas Comer appointed (27/10/2013) Anthony Dahl John Maddock Anne Slater Danny Taylor appointed (27/10/2013) Ian Wingad Robert Baxter retired (27/10/2013) Robert James retired (27/10/2013) Peter Moyle retired (27/10/2013) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated Company Secretary The Company Secretary is Andrew Spice Principal Activities The principal activity of the company during the financial year was: The principal activities of the entity during the financial year were the provision of social and sporting facilities and those of a registered club. There were no other significant changes in the nature of the entity s principal activities during the financial year. Short-term and Long-term Objectives The company's short term objectives are to: Enhance members and visitors Golf and Bowls experience; Maintain and / or modernise the Club s premises and facilities; Provide the best possible hospitality services to members and to the local community; Ensure ongoing profitability of the company to secure its financial future; and Promote the sporting and social operations of the company The company's long term objectives are to: Increase the participation level of Club members through promoting the sporting and social operations of the company; Maintain a financially healthy business; Plan for the future development and expansion of the Club and facilities; and Grow the company s operations. Strategies To achieve its stated objectives, the company has adopted the following strategies: The preparation of an annual budget for financial performance. Management and directors regularly review the company performance against the budget Marketing the Club and its facilities Create and maintain a safe and family friendly club environment. Further develop the Club's financial strategies Key Performance Measures The company uses the following key performance indicators to measure performance: Staff Cost Gross Profit margins Operating profits Golf Course & Bowling Green usage Comparisons to industry and budgeted performances Ocean Shores Country Club - Annual Report

18 OCEAN SHORES COUNTRY CLUB LTD DIRECTORS' REPORT Information on Directors Peter Tornaros Qualifications Experience Special Responsibilities Leslie Hoffman Qualifications Experience Special Responsibilities Nicholas Comer Qualifications Experience Special Responsibilities Anthony Dahl Qualifications Experience Special Responsibilities John Maddock Qualifications Experience Special Responsibilities Anne Slater Qualifications Experience Special Responsibilities Chairman Retired Public Servant/Business Owner Director since 21/09/2003 Ex-officio all Committees Deputy Chairman Retired Journalist/Editor Daily Telegraph Director since 24/09/2006 Chairman Asset Management Committee, Finance Committee, Bowls Management Committee Director Air Traffic Controller/Hospitality Business Owner Member of Board since 27/10/2013 Asset Management Committee Director Consultant Member of Board since 24/10/2010 Chairman Marketing & Sponsorship Committee Director Business Owner- Floor Covering & Installations Member of Board since 21/10/2012 Golf Management Committee, Marketing & Sponsorship Committee, Asset Management Committee Director/Treasurer Retired Banker/Small Business Owner Member of Board since 23/09/2007 Chairperson Finance Committee, Asset Management Committee Danny Taylor Director Qualifications Maintenance Ganger Local Council Experience Member of Board since 27/10/2013 Special Responsibilities Chairman Bowls Management Committee, Marketing & Sponsorship Committee Ian Wingad Qualifications Experience Special Responsibilities Robert Baxter Qualifications Experience Special Responsibilities Robert James Qualifications Experience Special Responsibilities Golf Representative/Director Retired Business Owner Member of Board since 21/09/2003 Chairman Golf Management Committee, Marketing & Sponsorship Committee Director Retired Real Estate Agent Member of Board since 26/10/2008, retired 27/10/2013 House & Social Committee, Operations Committee Bowls Representative Retired Deputy Principal Member of Board since 03/11/2006, retired 27/10/2013 Chairman Bowls Management Committee, Finance Committee Peter Moyle Qualifications Experience Special Responsibilities Director/Golf Representative Self-employed Tiler Member of Board since 25/10/2009, retired 27/10/2013 Operations Committee Ocean Shores Country Club - Annual Report

19 OCEAN SHORES COUNTRY CLUB LTD DIRECTORS' REPORT Meetings of Directors During the financial year, 15 meetings of directors were held Attendances by each director were as follows: Peter Tornaros Leslie Hoffman Nicholas Comer Anthony Dahl John Maddock Anne Slater Danny Taylor Ian Wingad Robert Baxter Robert James Peter Moyle Board Special Board Meetings Meetings Number Number Number Number Held Attended Held Attended 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 outstanding obligations of the company At 30 June 2014, the total amount that members of the company are liable to contribute if the company is wound up is $5,758 (2013: $5,596) Core Non Core Property as required under Section 41J of The Registered Clubs Act The Directors consider the Club's defined premises and all of its facilities to be Core Property The directors do not consider the Club to have Non-Core Property Section 41J of the Act defines core property as meaning any real property owned or occupied by the Club that comprises:- (a) the defined premises of the club, or (b) any facility provided by the club for use of its members and their guests or (c) any other property declared, by resolution passed by a majority of the members present at a general meeting of the ordinary members of the club, not to be core property of the Club Non-core property is defined as meaning any real property owned or occupied by the Club that is not core property Auditor s Independence Declaration The lead auditor s independence declaration for the year ended 30 June 2014 has been received and can be found on page 20. This directors report is signed in accordance with a resolution of the Board of Directors. Director Dated this Peter Tornaros 11th day of September 2014 Ocean Shores Country Club - Annual Report

20 OCEAN SHORES COUNTRY CLUB LTD AUDITOR S INDEPENDENCE DECLARATION UNDER S 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF OCEAN SHORES COUNTRY CLUB LTD I declare that, to the best of my knowledge and belief, during the year ended 30 June 2014 there have been no contraventions of: (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit Name of Firm Watson & Fenton Chartered Accountants Name of Partner Barry Dunnett Date 10/09/2014 Address 39 Wharf Street Tweed Heads NSW 2485 Ocean Shores Country Club - Annual Report

21 OCEAN SHORES COUNTRY CLUB LTD STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2014 Note $ $ Revenue 2 3,877,024 3,572,422 Other income 2 3,318 - Employee benefits expense 3(a) (1,335,652) (1,237,988) Depreciation and amortisation expense 3(a) (260,650) (268,750) Interest expense 3(a) (1,925) (14,206) Cost of sales 3(a) (823,868) (789,165) Other expenses 3(b) (1,319,954) (1,233,198) Profit/(loss) before income tax 138,293 29,115 Income tax expense 1(j) - - Profit/(loss) for the year 138,293 29,115 The accompanying notes form part of these financial statements Ocean Shores Country Club - Annual Report

22 OCEAN SHORES COUNTRY CLUB LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE $ $ Profit/(loss) for the year 138,293 29,115 Other comprehensive income for the year - - Total comprehensive income for the year 138,293 29,115 The accompanying notes form part of these financial statements Ocean Shores Country Club - Annual Report

23 OCEAN SHORES COUNTRY CLUB LTD STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014 Note $ $ ASSETS Current assets Cash and cash equivalents 4 347, ,171 Trade and other receivables 5 63,595 5,415 Inventories 6 138, ,330 Other current assets 7 25,703 22,099 Total current assets 574, ,015 Non-current assets Property, plant and equipment 8 2,478,679 2,439,936 Total non-current assets 2,478,679 2,439,936 TOTAL ASSETS 3,053,294 2,841,951 LIABILITIES Current liabilities Trade and other payables 9 537, ,445 Borrowings 10 10,584 17,234 Employee provisions , ,523 Total current liabilities 688, ,202 Non-current liabilities Borrowings ,084 Employee provisions 11 20,923 14,267 Total non-current liabilities 21,423 25,351 TOTAL LIABILITIES 709, ,553 NET ASSETS 2,343,689 2,205,398 EQUITY Retained earnings 2,314,637 2,176,346 Reserves 29,052 29,052 TOTAL EQUITY 2,343,689 2,205,398 The accompanying notes form part of these financial statements Ocean Shores Country Club - Annual Report

24 OCEAN SHORES COUNTRY CLUB LTD STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014 Balance at 1 July 2012 Comprehensive Income Profit/(loss) for the year Total comprehensive income attributable to the entity Balance at 30 June 2013 Balance at 1 July 2013 Comprehensive Income Profit/(loss) for the year Total comprehensive income attributable to the entity Balance at 30 June 2014 Retained Capital Profits Total Surplus Reserve $ $ $ 2,147,231 29,052 2,176,283 29,113 29,113 29,113-29,113 2,176,344 29,052 2,205,396 2,176,344 29,052 2,205, , , , ,293 2,314,637 29,052 2,343,689 The accompanying notes form part of these financial statements Ocean Shores Country Club - Annual Report

25 OCEAN SHORES COUNTRY CLUB LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014 Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from members and Club patrons 4,293,146 3,933,955 Payments to suppliers, employees and the ATO (3,865,338) (3,595,798) Interest received 1,455 3,223 Interest paid (1,925) (14,206) Net cash generated from operating activities 427, ,174 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment 9,091 - Payment for property, plant and equipment (305,166) (263,767) Net cash from/(used in) investing activities (296,075) (263,767) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of finance lease liabilities (17,234) (25,052) Repayment of borrowings - (299,500) Net cash generated by/(used in) financing activities (17,234) (324,552) Net increase/(decrease) in cash held 114,029 (261,145) Cash on hand at beginning of financial year 233, ,316 Cash on hand at end of financial year 4 347, ,171 The accompanying notes form part of these financial statements Ocean Shores Country Club - Annual Report

26 Note 1 Basis of Preparation Consequently, the Company has also early adopted the following reduced disclosure (Tier 2) standards: AASB : Amendments to Australian Accounting Standards arising from the Trans-Tasman Convergence Project Reduced Disclosure Requirements which incorporates Tier 2 disclosure requirements for amendments made to AASB 101: Presentation of Financial Statements and AASB 1054: Australian Additional Disclosures; AASB : Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements which contains the Tier 2 disclosure requirements for AASB 119: Employee Benefits (September 2011); AASB : Amendments to Australian Accounting Standards Fair Value Measurement Reduced Disclosure Requirements which contains the Tier 2 disclosure requirements for AASB 13: Fair Value Measurement; and AASB : Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements as it relates to the full-disclosure (Tier 1) standards that are mandatorily applicable for not-for-profit entities for the year ending 31 December 2013 Accounting Policies OCEAN SHORES COUNTRY CLUB LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 Summary of Significant Accounting Policies Ocean Shores Country Club Ltd has elected to early adopt the Australian Accounting Standards Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB : 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 Australian Accounting Standards Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001 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 financial statements containing relevant and reliable information about transactions, events and conditions Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated The financial statements, except for the cash flow information, have been prepared on an accruals 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 were authorised for issue on 11 September 2014 by the directors of the company (a) Revenue Gaming subsidies are recognised in the period receipted, which aligns with the timeframe the poker machines are patronised Revenue from gaming is derived from poker machines and is recognised 'net' of payouts to players Revenue from beverage sales is recognised when beverage is acquired by patrons Revenue from raffles is derived from ticket sales and is recognised in the period the raffle is drawn Sponsorship revenue is recognised upon invoice to the sponsor; this amount is determined in accordance with the amount pledged and the timing with which the agreed pledge will flow to the Company Revenue from membership subscriptions are recognised upon receipt However, those received in advance for future years are deferred until those timeframes are reached and are recognised, in the meanwhile, as a liability in the statement of financial position Revenue from members subscriptions is aligned with the period the members utilise the facilities provided and paid for Revenue from competition and green fees are recognised when the golf course is used by playing patrons for such purposes The receipt of fees and playing of golf usually occurs in the same timeframe Revenue from green fees is recognised in the period the bowling green is used by playing patrons for such purposes The receipt of fees and playing of bowls usually occurs in the same timeframe Commission revenue derived from patronising the ATM, Keno and TAB facilities provided, are recognised in the period it is earned Revenue from promotional rebates are recognised in the period they are earned, per the negotiated contracts Donations and bequests are recognised as revenue when received Interest revenue is recognised using the effective interest method, which for floating rate financial assets is the rate inherent in the instrument Ocean Shores Country Club - Annual Report

27 OCEAN SHORES COUNTRY CLUB LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 Revenue from the rendering of a service is recognised upon the delivery of the service to the customers All revenue is stated net of the amount of goods and services tax (GST) (b) (c) Inventories Inventories are measured at the lower of cost and current replacement cost Inventories acquired at no cost or for nominal consideration are measured at the current replacement cost as at the date of acquisition Property, Plant and Equipment The entity applies the cost model as its accounting policy to property, plant and equipment Freehold Property Freehold land is shown at cost Buildings are shown at cost less accumulated depreciation and any accumulated impairment losses Plant and Equipment Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated 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 either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for details of impairment) Plant and equipment that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value of the asset at the date it is acquired Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the entity commencing from the time the asset is held ready for use The depreciation rates used for each class of depreciable assets are: (d) Class of Fixed Asset Depreciation Rate Buildings 25-5% Plant and equipment 10-34% Leased plant and equipment 20-25% The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount These gains or losses are recognised in profit or loss in the period in which they arise Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the entity, are classified as finance leases Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses on a straight-line basis over the lease term Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term Ocean Shores Country Club - Annual Report

28 OCEAN SHORES COUNTRY CLUB LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 (e) 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 (ie trade date accounting is 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 recognised immediately as expenses in profit or loss. Classification and Subsequent Measurement Financial instruments are subsequently measured at fair value (refer to Note 1(q)), amortised cost using the effective interest method, or cost Where available, quoted prices in an active market are used to determine fair value In other circumstances, valuation techniques are adopted (i) 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 (ii) 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. (iii) Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire 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 when the related obligations are discharged, cancelled or have expired The difference between the carrying amount of the financial liability, which is 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 (f) (g) Impairment of Assets At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, to the asset s carrying amount. Any excess of the asset s carrying amount over its recoverable amount is recognised immediately in profit or loss Where the future economic benefits of the asset are not primarily dependent upon the asset s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset 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, salaries and sick leave 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, salaries and sick leave are recognised as a part of current trade and other payables in the statement of financial position Other long-term employee benefits The Company classifies employees 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, of which long service leave is 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 approximating 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 benefit expense Ocean Shores Country Club - Annual Report

29 OCEAN SHORES COUNTRY CLUB LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 (h) (i) (j) (k) (l) 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 statement of financial position 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 Taxation Office (ATO) Income Tax The entity has self-assessed and has deemed itself as exempt from income tax under Div 50 of the Income Tax Assessment Act 1997 Accordingly, no provision for income tax has been raised Intangibles Software Software is initially recognised at cost It has a finite life and is carried at cost less any accumulated amortisation and impairment losses Software has an estimated useful life of between one and three years It is assessed annually for impairment Provisions Provisions are recognised when the entity 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 reporting period (m) Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year (n) (o) The Company s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position, except where the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting date, in which case the obligations are presented as current liabilities Retirement benefit obligations Defined contribution superannuation benefits All employees of the Company receive defined contribution superannuation entitlements, for which the Company pays the fixed superannuation guarantee contribution (currently 9.25% of the employee s average ordinary salary) to the employee s superannuation fund of choice. All contributions in respect of employees defined contribution entitlements are recognised as an expense when they become payable. The Company s obligation with respect to employees defined contribution entitlements is limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period All obligations for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the Company s statement of financial position. Receivables and payables are stated inclusive of the amount of GST receivable or payable The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position Cash flows are presented on a gross basis The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers Trade and Other Payables Trade and other payables represent the liabilities for goods and services received by the company during the reporting period that remain unpaid at the end of the reporting period The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information 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 Depreciation Assessments are made on the useful lives of fixed assets Depreciation rates are set accordingly Long Service Leave Entitlement Assessments are made on the probability of staff taking long service leave This took into account history with the Club itself and characterisation of the Club industry Staff with four years service were assessed at 49%, seven years at 75% and 9 years and beyond 100% Ocean Shores Country Club - Annual Report