MANNING POINT BOWLING CLUB LIMITED

Transcription

1 MANNING POINT BOWLING CLUB LIMITED Audited Financial Report For the year ended 30 June 2018 Business Without Boundaries

2 CONTENTSNTENTS Directors report Auditor s independence declaration Statement of comprehensive income Statement of financial position Statement of changes in equity Statement of cash flow Notes to the financial statements Directors declaration Independent auditor s report

3 DIRECTORS REPORT Your directors present this report on the entity for the financial year ended 30 June Directors The names of each person who has been a director during the year and to the date of this report are: R. Hancock (Appointed 24/09/17) P. Hodges (Appointed 25/03/18) G. Martin (Appointed 24/09/17) L. Delaney (Resigned 24/09/17) G. Lewis (Appointed 24/09/17) R. Ross (Resigned 24/09/17) S. Summers (Appointed 24/09/17) K. Lewis (Resigned 24/09/17) J Charlton (Appointed 24/09/17; Resigned 20/03/18) G. Pass (Resigned 24/09/17) S. Radford (Appointed 21/01/18) J. Wisely (deceased) R. Clark (Appointed 25/03/18) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal Activities The principal activity of the entity during the financial year was operating as licensed bowling club. No significant changes in the nature of the entity s activity occurred during the financial year. Short-term and Long-term Objectives The company s short-term objectives are to: Undertake necessary scheduled repairs and maintenance to green and club buildings and grounds as and when required. To promote and encourage club membership and participation including younger patrons and families from both within the Manning Point area and its surrounds. To promote and encourage participation in the game of lawn bowls. The company s long-term objectives are to: Undertake regular green maintenance to ensure quality bowling surface for members. Undertake maintenance and repairs to Clubhouse and areas surrounding same. Increase bar gross profit margin to consistently exceed 60%. Strategies To achieve its stated objectives, the company has adopted the following strategies: Research, obtain quotes and contract with appropriate subcontractors to undertake the repairs. To generate sufficient income to substantially cover the cost of necessary repairs and maintenance and to supplement any deficiency from savings in term deposit if required. To increase gross profit margin to over 60%, make timed gradual increases to cost of alcohol over a 24 month period. The future increases to take place over the 2018/2019 financial year to be followed by further increases in the 2019/2020 financial year. Key Performance Measures The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the directors to assess the financial sustainability of the company and whether the company s short-term and long-term objectives are being achieved. Page 1 of 23

4 DIRECTORS REPORT Actual Benchmark Actual Benchmark Members Total amount of members Number of new members Number of continuing members Operational and Financial Proportion of funding provided by: Bar trading 26.27% 30% 22.12% 30% Poker machine receipts 23.20% 45% 23.55% 45% Information on Directors R. Hancock Chairperson Experience 1 year Special responsibilities Chairperson S. Summers Deputy Chairperson Experience 1 year Special responsibilities Deputy Chairperson G. Martin Ordinary Director Experience 1 year Special responsibilities Ordinary director G. Lewis Ordinary Director Experience 1 year Special responsibilities Ordinary director S. Radford Ordinary Director Experience 8 months Special responsibilities Ordinary director R. Clark Ordinary Director Experience 6 months Special responsibilities Ordinary director Page 2 of 23

5 DIRECTORS REPORT Information on Directors (continued) P. Hodges Ordinary Director Experience 10 months Special responsibilities Ordinary Director Meetings of Directors During the financial year, 12 ordinary meetings were held. Attendances by each director were as follows: Ordinary Meetings Number eligible to attend Number attended R. Hancock G. Martin 6 4 G. Lewis 10 8 S. Summers J Charlton 7 7 S. Radford 6 4 R. Clark 6 6 P. Hodges 6 6 L. Delaney 2 1 R. Ross 2 2 K. Lewis 2 2 G. Pass 2 1 J. Wisely 6 4 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 $4.00 each towards meeting any outstanding obligations of the entity. At 30 June 2018, the total amount that members of the company are liable to contribute if the company is wound up is $2, (2017: $2,968.00). Membership Class Number of Members Individual Members Contribution on Winding up of Company Total Members Contribution on winding up of Company Life Members 5 $4 $20 Full Bowling Members 51 $4 $204 Social Members 500 $4 $2,000 Junior Members 1 $4 $4 Total 557 $4 $2,228 Page 3 of 23

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8 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018 Note Revenue 2 1,153,206 1,121,727 Costs of goods sold 2 (330,530) (298,600) Employee benefits expense 2 (585,200) (600,850) Depreciation and amortisation expense (111,821) (116,344) Other expense 2 (339,491) (315,111) Profit/(loss) before income tax (213,836) (209,178) Income tax expense - - Profit/(loss) for the year (213,836) (209,178) Other comprehensive income: Net gain on revaluation of property, plant and equipment - - Prior years adjustment - - Other comprehensive income for the year, net of tax - - Total comprehensive income for the year (213,836) (209,178) Total comprehensive income attributable to members of the entity (213,836) (209,178) The accompanying notes form part of these financial statements. Page 6 of 23

9 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018 Note ASSETS CURRENT ASSETS Cash and cash equivalents 3 457, ,979 Trade and other receivables ,294 Inventories 5 29,208 31,358 Financial assets Other assets 7-1,264 TOTAL CURRENT ASSETS 487, ,895 NON-CURRENT ASSETS Trade and other receivables 4 7,000 6,000 Property, plant and equipment 8 923,351 1,023,760 TOTAL NON-CURRENT ASSETS 930,351 1,029,760 TOTAL ASSETS 1,417,905 1,612,655 LIABILITIES CURRENT LIABILITIES Trade and other payables 9 102,968 73,917 Short-term provisions 10 65,859 65,841 Income in advance TOTAL CURRENT LIABILITIES 169, ,758 NON-CURRENT LIABILITIES Trade and other payables Long-term provisions 10 3,851 14,305 TOTAL NON-CURRENT LIABILITIES 3,851 14,305 TOTAL LIABILITIES 173, ,063 NET ASSETS 1,244,756 1,458,592 EQUITY Retained earnings 1,244,756 1,458,592 TOTAL EQUITY 1,244,756 1,458,592 The accompanying notes form part of these financial statements. Page 7 of 23

10 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018 Retained Earnings Reserves Total $ Balance at 1 July ,667,770-1,667,770 Profit/(loss) attributable to the entity (209,178) - (209,178) Balance at 30 June ,458,592-1,458,592 Profit /(loss) attributable to the entity (213,836) - (209,178) Balance at 30 June ,244,756-1,458,592 The accompanying notes form part of these financial statements. Page 8 of 23

11 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018 Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and members 1,258,070 1,213,210 Payments to suppliers and employees (1,339,839) (1,270,432) Interest received 8,620 13,408 Net cash generated from operating activities 12 (73,149) (43,814) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment Payment for property, plant and equipment (11,412) (320,300) Purchase of investments - - Proceeds from investments - - Net cash (used in)/ generated from investing activities (10,957) (320,300) CASH FLOWS FROM FINANCING ACTIVITIES - - Net increase / (decrease) in cash held (84,106) (364,114) Cash at the beginning of the financial year 541, ,093 Cash at the end of the financial year 3 457, ,979 The accompanying notes form part of these financial statements. Page 9 of 23

12 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The directors have prepared the financial statements on the basis that the company is a non-reporting entity because there are no users who are dependent on its general purpose financial reports. These financial statements are therefore special purpose financial statements that have been prepared in order to meet the requirements of the Corporations Act The financial statements have been prepared in accordance with the mandatory Australian Accounting Standards applicable to entities reporting under the Corporations Act 2001 and the significant accounting policies disclosed below, which the directors have determined are appropriate to meet the needs of members. Such accounting policies are consistent with the previous period unless stated otherwise. The financial statements have been prepared on an accruals basis and are based on historical costs unless otherwise stated in the notes. The accounting policies that have been adopted in the preparation of this report are as follows: Accounting Policies a. Revenue Donations and bequests are recognised as revenue when received. Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established. 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. Inventories Inventories are measured at the lower of cost and current replacement cost. c. Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair values where indicated, less, where applicable, accumulated depreciation and impairment losses. Plant and equipment are measured on the cost basis less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. 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. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Class of Fixed Asset Depreciation Rate Building % Plant and equipment % The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Page 10 of 23

13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. d. 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 entities in the economic entity 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. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term. 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 expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. Fair value is the price the company would receive to sell an asset or would have to pay to transfer a liability in an orderly (ie unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm s length transactions, reference to similar instruments and option pricing models. Page 11 of 23

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (i) (ii) (iii) (iv) (v) Financial assets at fair value through profit or loss Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the company s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Available-for-sale financial assets Available-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss. Available-for-sale financial assets are classified as non-current assets when they are not expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as current assets. Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. Impairment At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a loss event ) having occurred, which has an impact on the estimated future cash flows of the financial asset(s). In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified into profit or loss at this point. Page 12 of 23

15 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults. For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account. When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the company recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are discharged, cancelled or expired. The difference between the carrying value 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. Impairment of Assets At the end of each reporting period, the entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset s fair amount less costs of disposal and value in use, is compared 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. Where it is not possible to estimate the recoverable amount of a class of asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset. g. 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 before 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 part of accounts payable and other payables in the statement of financial position. Contributions are made by the entity to an employee superannuation fund and are charged as expenses when incurred. Page 13 of 23

16 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES h. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other shortterm 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. i. 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 Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. j. Income Tax No provision for income tax has been raised, as the entity is exempt from income tax under Div 50 of the Income Tax Assessment Act k. Intangibles Software Software is recorded at cost. Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of between one and three years. It is assessed annually for impairment. l. 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 the 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. Where the company retrospectively applies an accounting policy, makes a retrospective restatement or reclassifies items in its financial statements, a third statement of financial position as at the beginning of the preceding period in addition to the minimum comparative financial statements must be presented. n. Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remains unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days of recognition of the liability. o. 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 and Judgment The directors evaluate estimates and judgements 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. Page 14 of 23

17 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 2: PROFIT BEFORE INCOME TAX a. Revenue Bar receipts 505, ,148 Poker machine receipts 267, ,667 Catering receipts 261, ,200 Bingo receipts 6,962 8,466 Commissions received 33,717 32,994 Member subscriptions 2,532 4,305 Interest received 6,473 14,315 Government subsidies 36,271 21,189 Insurance recoveries 24,502 13,700 Other revenue 7,695 26,743 1,153,206 1,121,727 b. Expense Cost of goods sold Bar purchase 192, ,447 Bar freight 6,193 6,202 Bar Stock adjustment 3,477 6,368 Catering purchase 129, ,526 Catering freight Catering Stock adjustment (1,327) (4,052) 330, ,600 Employee benefits Wages and salaries 543, ,690 Superannuation expense 51,734 53,245 Leave provisions adjustment (10,436) 10, , ,850 Other expenses Advertising 2,617 5,949 Auditors remuneration 12,775 12,265 Accountancy and bookkeeping 3,379 - Bank & ATO charges 2,971 1,350 Cleaning 8,069 6,873 Computer expenses 10,087 5,180 Consultants fees 2,061 1,668 Contractor - Green 818 2,310 Donations (770) 1,720 Page 15 of 23

18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2018 Other expenses (continued) Electricity and gas 68,617 49,870 Filling fees 1,125 - General expenses 2,943 5,805 Honorariums 9,058 11,100 Insurance 32,449 31,825 Legal expenses Meeting expenses Members amenities and expenses 5,554 4,930 Motor vehicle expenses 5,850 6,853 Occupational health and safety 2,161 1,512 Printing, stationary and postage 7,710 6,960 Rates 22,492 18,798 Repair and maintenance 39,872 38,277 Security 1,752 2,457 Social entertainment 10,800 12,485 Staff amenities Staff training 1, Subscriptions and licences 9,068 8,142 Trading expenses - Bar 6,343 6,182 Trading expenses - Bingo 6,515 6,395 Trading expenses - Catering 5,986 7,755 Trading expenses - Keno 1,676 1,995 Trading expenses - Poker machine 29,239 28,981 Trading expenses - TAB 16,386 16,557 Telephone 8,159 7,479 Under and over 347 1,462 Uniform , ,111 NOTE 3: CASH AND CASH EQUIVALENTS Cash on hand 43,918 43,682 Cash at bank working account 13,341 7,728 Cash at bank Keno account 16,722 20,495 Cash at bank TAB account 14,460 12,867 Cash at bank ATM account 13,062 9,481 Term deposit Newcastle Permanent 356, , , ,979 Page 16 of 23

19 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2018 Note 3: CASH AND CASH EQUIVALENTS (CONTINUED) Reconciliation of cash Cash and cash equivalents 457, , , ,979 NOTE 4: TRADE AND OTHER RECEIVABLES CURRENT Trade receivables Accrued interest income - 2,147 Accrued commission income ATM account 150 5, ,294 NON-CURRENT Deposit held NSW TAB 6,000 6,000 Bonds paid 1,000-7,000 6,000 NOTE 5: INVENTORIES CURRENT At cost Stock - Bar 23,829 27,306 Stock - Catering 5,379 4,052 29,208 31,358 NOTE 6: FINANCIAL ASSETS CURRENT Held-to-maturity financial assets Held-to-maturity investments comprise: Term deposit (with original maturity > 3 months) Page 17 of 23

20 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 June 2018 NOTE 7: OTHER ASSETS CURRENT Prepayments - 1,264-1,264 NOTE 8: PROPERTY, PLANT AND EQUIPMENT PROPERY Freehold land At cost 1,100 1,100 Buildings At cost 1,441,176 1,439,126 Less accumulated depreciation (766,699) (725,948) 674, ,178 PLANT AND EQUIPMENT Plant and equipment At cost 1,233,496 1,225,953 Less accumulated depreciation (985,722) (916,471) 247, ,482 Total Property, Plant and Equipment 923,351 1,023,760 NOTE 9: TRADE AND OTHER PAYABLES CURRENT Trade payables 33,549 21,265 Superannuation payable 7,596 11,422 Accrued expenses 4,738 8,952 TAB & Poker Machine account 1,652 - ATO - GST and PAYG withholding 55,433 32, ,968 73,917 NON - CURRENT Page 18 of 23

21 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 10: PROVISIONS CURRENT Provision for annual leave 48,354 50,126 Provision for long service leave 17,505 15,715 65,859 65,841 NON - CURRENT Provision for long service leave 3,851 14,305 Provision for Long-term Employee Benefits 3,851 14,305 A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits have been included in Note 1 to this report. NOTE 11: INCOME IN ADVANCE Members subscriptions NOTE 12: CASH FLOW INFORMATION Reconciliation of cash flow from operations with profit after income tax Profit / (loss) after income tax (213,836) (209,178) Non cash flows in profit / (loss) Depreciation and amortisation 111, ,344 (Profit ) / loss on disposal of non-current asset (455) (2,000) Accrued expense attributable to investing activities - - Changes in assets and liabilities (Increase)/Decrease in trade and other receivables 1,394 (1,137) (Increase)/Decrease in prepayments 1,265 1 (Increase)/Decrease in inventories 2,150 3,816 Increase/(Decrease) in trade and other payables 34,477 37,426 Increase/(Decrease) in income in advance Increase/(Decrease) in provisions (10,436) 10,914 Cash flows provided by operating activities (73,149) (43,814) Page 19 of 23

22 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018 NOTE 13: ENTITY DETAILS The registered office of the company is: Manning Point Bowling Club Limited Manning Street Manning Point NSW 2430 The principal place of business is: Manning Point Bowling Club Limited Manning Street Manning Point NSW 2430 NOTE 14: MEMBERS GUARANTEE The entity 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 $4 each towards meeting any outstandings and obligations of the company. At 30 June 2018 the number of members was 557 (30 June 2017: 742). Page 20 of 23

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24 INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF MANNING POINT BOWLING CLUB LIMITED We have audited the accompanying financial report, being a special purpose financial report, of Manning Point Bowling Club Limited (the company), which comprises the statement of financial position as at 30 June 2018, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, a summary of significant accounting policies, other explanatory notes and the directors declaration. Directors Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors responsibility also includes such internal control as the directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We have conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Manning Point Bowling Club Limited on 1 July 2018, would be in the same terms if provided to the directors as at the date of this auditor s report. Auditor s Opinion In our opinion the financial report of Manning Point Bowling Club Limited is in accordance with the Corporations Act 2001, including: a. giving a true and fair view of the company s financial position as at 30 June 2018 and of its performance for the year ended on that date; and b. complying with Australian Accounting Standards to the extent described in Note 1 and complying with the Corporations Regulations Page 22 of 23

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