City of Blacktown RSL Club Limited

Transcription

1 Financial Statements

2 Contents Financial Statements Directors' Report 1 Directors' Declaration 5 Auditors Independence Declaration under Section 307C of the Corporations Act Statement of Profit or Loss and Other Comprehensive Income 7 Statement of Financial Position 8 Statement of Changes in Equity 9 Statement of Cash Flows 10 Notes to the Financial Statements 11 Independent Audit Report 20 Page

3 Directors' Report Your directors present their report together with the financial report of City of Blacktown RSL Club Limited (the company) for the financial year ended 30 June 2018 and the auditor's report thereon. General information Directors The names of the directors in office at any time during, or since the end of, the year are: Names Position Appointed/Resigned Tony Williams Chairman Bill Forsyth Deputy Chairman Tom Baena Director Wilma Drower Director Donna McPherson Director Chris Perrin Director Not re-elected at AGM 22 October 2017 Samuel Sultana Director Robert Cooper Director Appointed 22 October 2017 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Information on directors The names of each person who has been a director during the year and to the date of this report are: Tony Williams Experience Bill Forsyth Experience Chairman Vice President / President - North Western Metropolitan Region Clubs NSW Director - City of Blacktown RSL Club Limited Deputy Chairman Chairman Member - City of Blacktown RSL Club Limited 17 years Deputy Chairman Retired - Sydney Morning Herald in Advertising and Marketing - 30 years President - Lalor Park Breakaway Softball Club - 40 years Groundsmen - Cumberland Nepean Softball Association - 23 years / Life Member Chairman - Parks Committee, International Peace Park Director - City of Blacktown RSL Club Limited Deputy Chairman Member - City of Blacktown RSL Club Limited 49 years Tom Baena Experience Director Admitted Solicitor and Barrister, Supreme Court of New Wales Associate Solicitor and Licensed Migration Agent - Jessie Icao Solicitors Justice of the Peace Master of Criminology - Sydney University Diploma in Law - Legal Practitioner s Admission Board Major, Royal Australian Corps of Military Police, Reserve (Inactive) President, City of Blacktown RSL Sub Branch Present Retired Police Officer, New South Wales Police Service ( ) Former Commissioner, Community Relations Commission, NSW Premier s Office ( ) Director City of Blacktown RSL Club Limited Member City of Blacktown RSL Club Limited 11 years 1

4 Directors' Report General information (cont'd) Information on directors (cont'd) Wilma Drower Experience Director Retired - David Jones and Myer Current Volunteer Community Worker Blacktown City Resident 62 years Blacktown Citizen of the Year Blacktown Citizen of the Year Finalist 2016 Centenary of Federation Medal Committee Member - Blacktown City Council - 36 years, currently Blacktown Sister Cities President - Blacktown City Show Society Inc. President - Quakers Hill Neighbourhood Centre President - Quaker Hills Community Centre Delegate - Agricultural Societies Council Cumberland Group Fundraising Volunteer - Relay for Life Finalist - Outstanding Community Member Spirit of the ANZACS Award Home Stay Parent to International Students through UWS - 13 years Justice of the Peace Director - City of Blacktown RSL Club Limited Member - City of Blacktown RSL Club Limited 15 years Donna McPherson Experience Director Blacktown Resident - 18 years Volunteer - Animal Campaigning Director - City of Blacktown RSL Club Limited Member - City of Blacktown RSL Club Limited 6 years Chris Perrin Experience Samuel Sultana Experience Director Senior Non-Commissioned Officer Royal Australian Navy Reserve Fellow, Institute of Managers and Leaders (FIML) Fellow, Australian Institute of Community Practice and Governance (FAICPG) Chief Executive Officer - RSL NSW Director - Hyde Park Inn Director - RSL Custodian Pty Ltd Director of Appeals - URSF Trustee - RSL WBI Trustee - RSL AFOF Hon Secretary - ANZAC House Trust Custodian of the ANZAC Memorial Custodian of the Cenotaph Justice of the Peace Life Member - RSL of Australia Director - City of Blacktown RSL Club Limited , , Deputy Chairman Chairman 2013, Member - City of Blacktown RSL Club Limited 28 years Director Planning / Stock Control Team Leader DEX Australia Tri-Service Cadet Competition Chairman 2012 Member of City of Blacktown RSL sub-branch Committee Member, City of Blacktown RSL Sub Branch Director City of Blacktown RSL Club Limited Member City of Blacktown RSL Club Limited 26 years 2

5 Directors' Report General information (cont'd) Information on directors (cont'd) Robert Cooper Experience Director Life Member RSL of Australia President Far Western Metropolitan District Council Received Order of Australia Medal for service to Veterans & Community 2010 Justice of the Peace Member of City of Blacktown RSL sub-branch Served in Vietnam with Royal Australian Navy 1971 Director - City of Blacktown RSL Club Limited Member - City of Blacktown RSL Club Limited 4 years Members guarantee City of Blacktown RSL Club Limited is a company limited by guarantee and is without share capital. In accordance with the Constitution of the company, every member of the company undertakes to contribute an amount limited to 3 per member in the event of the winding up of the company during the time that he/she is a member or within one year thereafter. At 30 June 2018 the collective liability of members was 41,223 (2017: 41,178). Objectives To provide quality facilities and services of a licensed club for members and their guests in a sustainable manner, both now and into the future. To promote the objectives of the Returned and Services League of Australia and support local community organisations and activities. Short term objectives Maintain membership and increase club attendances. Improve efficiency and profitability of club operations. Ensure premises are well maintained and provide a high level of customer service. Long term objectives To continue to develop services and facilities that are relevant to the member's expectations and that are attractive to new markets. Ensure sustainable practices and policies in terms of energy and resource usage. Maintain financial prudence to enhance stability. Strategy for achieving the objectives The Club undertakes strategic planning review, including governance, operational, marketing, demographic and community issues in determining both long and short term policy and procedures. Principal activities The principal activities of the company during the year consisted of the conduct and promotion of a licensed social club for members of the company. No significant changes in the nature of the Company's activity occurred during the financial year. How principal activities assisted in achieving the objectives Operating the licensed social club to generate the revenue and cash flows to achieve our objectives. 3

6 Directors' Report Operating results The net profit before income tax for the year amounted to 890,350 (2017: 1,632,101). This net profit resulted after recognising depreciation of 1,709,203 (2017: 1,707,037) and before recognising an income tax expense of 61,138 (2017: 120,518). Meetings of directors During the financial year, 13 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows: Regular Board Meetings Number eligible to attend Number attended Tony Williams Bill Forsyth Tom Baena Wilma Drower Donna McPherson Chris Perrin 3 2 Samuel Sultana Robert Cooper The Board also formed the following sub-committees which met throughout the year, in addition to the above meetings: Members & Disciplinary Committee Grants, Sports & Community Committee Special Projects Committee Auditor's independence declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2018 has been received and can be found on page 6 of the financial report. Signed in accordance with a resolution of the Board of Directors:... Tony Williams Chairman Dated: 28 August

7 Directors' Declaration The directors of the Company declare that: 1. In the Director's opinion the financial statements and notes, as set out on pages 7 to 20, are in accordance with the Corporations Act 2001 and: a. give a true and fair view of the financial position as at 30 June 2018 and of the performance for the year ended on that date; and b. comply with Australian Accounting Standards - Reduced Disclosure Requirements; and Corporations Regulations 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.... Tony Williams Chairman Dated: 28 August

8 Auditors Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of City of Blacktown RSL Club Limited I declare that, to the best of my knowledge and belief, during the year ended 30 June 2018, there have been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) no contraventions of any applicable code of professional conduct in relation to the audit. PKF SCOTT TOBUTT PARTNER 28 AUGUST 2018 SYDNEY,NSW PKF(NS) Audit & Assurance Limited Partnership ABN Liability limited by a scheme approved under Professional Standards Legislation Sydney Level 8, 1 O Connell Street Sydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001 p f Newcastle 755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309 p f PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For office locations visit 6

9 Statement of Profit or Loss and Other Comprehensive Income Note Revenue 4 10,553,684 11,073,088 Other income 4 179, ,573 Raw materials and consumables used (262,703) (248,057) Employee benefits expense (2,569,707) (2,482,997) Entertainment, marketing and promotional costs (637,003) (630,170) Poker machine licences and taxes (2,169,511) (2,326,266) Members amenities (123,559) (149,535) Occupancy expenses (1,763,135) (1,494,261) Other expenses (352,007) (325,727) Profit before income tax, depreciation, interest and support to community 2,855,290 3,581,648 Finance costs 5 (81,686) (56,206) Donations (174,051) (186,304) Depreciation expense 5 (1,709,203) (1,707,037) Profit before income tax 890,350 1,632,101 Income tax expense 6 (61,138) (120,518) Profit for the year 829,212 1,511,583 Other comprehensive income for the year - - Total comprehensive income for the year 829,212 1,511,583 The accompanying notes form part of these financial statements. 7

10 Statement of Financial Position 30 June 2018 Note ASSETS CURRENT ASSETS Cash and cash equivalents 8 462, ,727 Trade and other receivables 9 9,960 - Inventories 10 46,823 43,641 Financial assets 11 10,556 10,556 Current tax receivable 7 7,035 - Other current assets , ,965 TOTAL CURRENT ASSETS 725, ,889 NON-CURRENT ASSETS Property, plant and equipment 13 25,718,336 24,100,308 Deferred tax assets 7 20,500 20,792 TOTAL NON-CURRENT ASSETS TOTAL ASSETS 25,738,836 24,121,100 26,464,370 25,069,989 LIABILITIES CURRENT LIABILITIES Trade and other payables 14 1,031,756 1,187,078 Financial liabilities , ,141 Employee benefits , ,953 Current tax liabilities 7-77,278 Other current liabilities 17 55,289 58,286 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES 1,908,622 2,394,736 Financial liabilities 15 2,690,263 1,644,644 Employee benefits 16 30,622 37,060 Other non-current liabilities 17 77,927 65,825 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS 2,798,812 1,747,529 4,707,434 4,142,265 21,756,936 20,927,724 EQUITY Retained earnings 21,756,936 20,927,724 TOTAL EQUITY 21,756,936 20,927,724 The accompanying notes form part of these financial statements. 8

11 Statement of Changes in Equity Retained Earnings Total Balance at 1 July ,927,724 20,927,724 Profit for the year 829, ,212 Balance at 30 June ,756,936 21,756,936 Retained Earnings Total Balance at 1 July ,416,141 19,416,141 Profit for the year 1,511,583 1,511,583 Balance at 30 June ,927,724 20,927,724 The accompanying notes form part of these financial statements. 9

12 Statement of Cash Flows Note Cash Flows from Operating Activities Receipts from customers 11,785,772 12,422,617 Payments to suppliers and employees (9,214,551) (9,202,736) Interest received Interest paid (81,686) (56,206) Income taxes paid Net cash provided by / (used in) operating activities (145,159) (103,591) 2,344,411 3,060,159 Cash Flows from Investing Activities: Purchase of property, plant and equipment (3,327,231) (4,073,205) Net cash provided by / (used in) investing activities (3,327,231) (4,073,205) Cash Flows from Financing Activities: Net proceeds / (repayment) of borrowings 786, ,182 Net cash provided by / (used in) from financing activities 786, ,182 Net increase / (decrease) in cash and cash equivalents held (196,206) (124,864) Cash and cash equivalents at beginning of year 658, ,591 Cash and cash equivalents at end of financial year 8 462, ,727 The accompanying notes form part of these financial statements. 10

13 Notes to the Financial Statements The financial statements are for City of Blacktown RSL Club Limited as an individual entity, incorporated and domiciled in Australia. City of Blacktown RSL Club Limited is an unlisted, public company limited by guarantee. 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 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 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. 2 Summary of Significant Accounting Policies (a) 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. Gaming Revenue Gaming machine revenue is recognised on an accrual basis calculated as net of gaming machine collections and payouts, less any costs associated with future jackpot contributions. 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 the risks and rewards are transferred and there is no longer any ownership or effective control over the goods. Subscriptions Revenue from the provision of membership subscriptions is recognised on a straight-line basis over the financial year. (b) 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 are included in the Statement of Cash Flows 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 ATO is classified as operating cash flows. 11

14 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (cont'd) (c) Income Tax The income tax expense (revenue) for the year comprises current income tax expense (income) and deferred tax expense (income). Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at the end of the reporting period. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority. Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at the end of the reporting year. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability. Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Non member income of the association is only assessable for tax, as member income is excluded under the principle of mutuality. (d) 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. (e) Inventories Inventories are measured at the lower of cost and net realisable value. Costs have been assigned to inventory quantities on hand at balance date using the weighted average basis. (f) Property, plant and equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment. Under the cost model, 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. Plant and equipment are measured on the cost basis less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the asset. Land and buildings Land and buildings are measured using the cost method. Plant and equipment Plant and equipment are measured using the cost method. 12

15 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (cont'd) (f) Property, plant and equipment (cont'd) Capital Works in progress The cost of fixed assets constructed within the Club includes the cost of materials and direct labour. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate only when it is probably that future economic benefits associated with the item will flow to the Club and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Club, commencing when the asset is ready for use. The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Buildings and improvements 2.5 % Plant and Equipment 5-33 % 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. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of profit or loss and other comprehensive income. (g) Trade and other receivables Trade debtors and other receivables represent the principal amounts due at balance date plus accrued interest and less, where applicable, any unearned income and provisions for doubtful accounts. (h) Trade and other payables These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year, which are unpaid. The amounts are unsecured and are usually paid within 60 days of recognition. (i) Leases Finance leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the Company are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. 13

16 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (cont'd) (j) Financial instruments Initial recognition and measurement 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). Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets. After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in profit or loss. The Company s trade and other receivables fall into this category of financial instruments. Significant receivables are considered for impairment on an individual asset basis when they are past due at the reporting date or when objective evidence is received that a specific counterparty will default. The amount of the impairment is the difference between the net carrying amount and the present value of the future expected cash flows associated with the impaired receivable. In some circumstances, the Company renegotiates repayment terms with customers which may lead to changes in the timing of the payments, the Company does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis. Financial liabilities Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities depending on the purpose for which the liability was acquired. Although the Company uses derivative financial instruments in economic hedges of currency and interest rate risk, it does not hedge account for these transactions. The Company s financial liabilities include borrowings, trade and other payables (including finance lease liabilities), which are measured at amortised cost using the effective interest rate method. (k) Financial liabilities Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit or Loss and Other Comprehensive Income over the period of borrowings using the effective interest method. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the Statement of Financial Position date. 14

17 Notes to the Financial Statements 2 Summary of Significant Accounting Policies (cont'd) (l) 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. 3 Critical accounting estimates and judgements 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. The significant estimates and judgements made have been described below. Key estimates - useful life of assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. 15

18 Notes to the Financial Statements Revenue and Other Income Sales revenue - Bar sales 645, ,267 - Catering sales 123, , , ,987 Rendering of services revenue - Poker machines - net clearances 9,398,344 9,997,912 - Members' subscriptions 48,000 48,000 - Entertainment and promotions 86,251 66,106 - Members amenities income 4,280 2,001 - Keno sales 43,569 41,354 - Commission received 80,227 69,060 - Sundry income 124,295 45,668 9,784,966 10,270,101 Revenue 10,553,684 11,073,088 Other income - Interest received Rent received 179, , , ,573 5 Result for the year Finance costs Bank loans and overdraft 75,211 51,363 Hire purchase charges 6,475 4,843 Total finance costs 81,686 56,206 Depreciation Land and buildings 342, ,598 Plant and equipment 1,367,007 1,404,439 Total depreciation 1,709,203 1,707,037 6 Income Tax (a) The major components of tax expense (income) comprise: Current tax 63,220 83,846 Deferred tax ,237 Under/ (over) provision in respect of prior years (2,374) 19,435 61, ,518 16

19 Notes to the Financial Statements Income Tax (cont'd) (b) Reconciliation of income tax to accounting profit: Prima facie tax payable on profit from ordinary activities before income tax at 27.5% ( %) 244, ,630 Add: Tax effect of: - Net income/(loss) and expenditure items relating to member activities (181,334) (388,547) - Under/ (over) provision in respect of prior years (2,374) 19,435 Income tax expense 61, ,518 7 Tax assets and liabilities (a) Current Tax Asset Current tax receivable 7,035 - (b) Current Tax Liability Current tax liabilities - 77,278 (c) Recognised deferred tax assets and liabilities Deferred tax assets 20,500 20,792 8 Cash and Cash Equivalents Cash on hand 250, ,198 Bank balances 211, , , ,727 9 Trade and Other Receivables Trade debtors 9, Inventories Finished goods 46,823 43, Financial Assets Available for sale investments 10,556 10, Other Assets Prepayments 188, ,965 17

20 Notes to the Financial Statements Property, plant and equipment Freehold land and buildings At cost 21,071,276 20,158,934 Accumulated amortisation (2,844,235) (2,501,029) Total freehold land and buildings 18,227,041 17,657,905 Capital works in progress At cost 1,401, ,619 Plant and equipment At cost 18,321,993 16,897,218 Accumulated depreciation (12,232,431) (10,866,434) Total plant and equipment 6,089,562 6,030,784 Total property, plant and equipment 25,718,336 24,100,308 (a) 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: Capital Works in Progress Buildings and improvement s Plant and Equipment Total Year ended 30 June 2018 Balance at the beginning of year 411,619 17,657,905 6,030,784 24,100,308 Additions 1,861, ,825 1,230,911 3,327,231 Transfers (871,381) 677, ,864 - Depreciation expense - (343,206) (1,365,997) (1,709,203) Balance at the end of the year 1,401,733 18,227,041 6,089,562 25,718,336 Core properties The company's core properties comprise the land and buildings located at Second Avenue, Blacktown NSW There are no non-core properties held by the Company. 14 Trade and Other Payables Trade creditors 188, ,048 Other creditors and accruals 735, ,340 Other payables 107, ,690 1,031,756 1,187,078 18

21 Notes to the Financial Statements Financial liabilities Current Secured liabilities: Finance lease , ,141 Non-Current Secured liabilities: 495, ,141 Finance lease , ,032 Commercial bill 2,474, ,612 Borrowing facilities 2,690,263 1,644,644 The company has access to the following lines of credit: Total facilities available: Finance lease 710,787 1,429,173 Commercial bill facility 5,000,000 5,000,000 5,710,787 6,429,173 Facilities utilised at reporting date: Finance lease 710,787 1,429,173 Commercial bill facility 2,474, ,612 Security 3,185,399 2,398,785 The commercial bill was secured by a Registered Mortgage Debenture (fixed and floating charge) over the whole of the assets and undertakings of the company and the first Registered Mortgage over the property situated at Second Avenue, Blacktown being the property known as city of Blacktown RSL Club Limited. Lease liabilities are secured by the underlying leased assets. 16 Employee Benefits Aggregate liability for employee benefits including on costs: Current 326, ,953 Non-current 30,622 37, , , Other Liabilities Current Member subscriptions 55,289 58,286 Non-current Member subscriptions 77,927 65,825 19

22 Notes to the Financial Statements Capital and Leasing Commitments (a) Finance Lease Commitments Finance lease commitments are payable: - not later than one year 495, ,141 - between one year and five years 215, ,032 Minimum lease payments 710,787 1,429,173 (b) Contractual Commitments 19 Contingencies The Club is subject to on-going refurbishment under the development master-plan. However, there are no contractual commitments in place at 30 June 2018 (30 June 2017: Nil). Operating leases are in place in relation to service and support provided in relation to Gaming Management Systems. Minimum lease payments under non-cancellable operating leases: - not later than one year 1,820 40,028 - between one year and five years 4,550 6,370 6,370 46,398 The company has given the following bank guarantees: TAB Limited 5,000 5, Key Management Personnel Disclosures (a) Key management personnel compensation The totals of remuneration paid to the key management personnel of City of Blacktown RSL Club Limited during the year are as follows: Benefits and payments made to key management personnel 511, , Events Occurring After the Reporting Date The financial report was authorised for issue on 28 August 2018 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. 22 Company Details The registered office of the company is: City of Blacktown RSL Club Limited Second Avenue Blacktown NSW

23 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF CITY OF BLACKTOWN RSL CLUB LIMITED Report on the Financial Report Opinion We have audited the financial report of City of Blacktown RSL Club Limited (the Company), which comprises the statement of financial position as at 30 June 2018, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: (i) (ii) giving a true and fair view of the Company's financial position as at 30 June 2018 and of its financial performance for the year ended; and complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001 Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Directors 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. In preparing the financial report, the directors are responsible for assessing the Company s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. PKF(NS) Audit & Assurance Limited Partnership ABN Liability limited by a scheme approved under Professional Standards Legislation Sydney Level 8, 1 O Connell Street Sydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001 p f Newcastle 755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309 p f PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms. For office locations visit 21

24 Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit 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. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. PKF SCOTT TOBUTT PARTNER 28 AUGUST 2018 SYDNEY,NSW 22