SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS

Transcription

1 SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS Financial Report For The Year Ended 30 June 2015

2 South Tweed Bowls Club Ltd trading as South Tweed Sports Financial Report For The Year Ended 30 June 2015 CONTENTS Page Directors' Report 1 Auditor's Independence Declaration 4 Statement of Profit or Loss 5 Statement of Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes in Equity 8 Statement of Cash Flows 9 Notes to the Financial Statements 10 Directors' Declaration 20 Independent Auditor's Report 21

3 DIRECTORS' REPORT Your directors present this report on the company 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: Charles Thygesen Russell Boyd Kim Mitchell Wayne Earea appointed (23/11/2014) Hazel Ensbey Brian Spurway appointed (23/11/2014) Noelene Tauris Ben Bernotas resigned (23/11/2014) (resigned 1/6/2015) 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 company during the financial year was: Provide for Members and Members Guests a social and sporting Club highlighting the promotion of lawn bowls, and to provide a licensed club with all the usual facilities of a club catering for all age groups. The Club also endeavours to give the community a significant proportion of the clubs profits back by improving the Club s own amenities and continued support of various charities and community organizations. Short-term and Long-term Objectives Increase Membership numbers and attendance to ensure the Club s Income levels continue to grow. Reinvest into our member s facilities according to our patron s changing needs. Improve and consolidate the financial performance and cash position of the Club, adhering to budget models, and making real reductions in operating costs understanding that Revenue will fluctuate with market forces. Maintain strong ties and support within our community via the relevant support of local charities and community organizations. Strategies To achieve its stated objectives, the company has adopted the following strategies: Review the Master Plan for the Club on a regular basis. Maximise advantages from any marketing opportunities they may arise. Re-Investment so it contributes to our vision of making quality, affordable and accessible member s facilities in line with market trends and member expectations. Maintain high customer service by providing regular and up to date staff training. Investigate alternatives for producing income from non-traditional sources. Key Performance Measures The entity measures its performance (including any key performance indicators) by: Monthly Financial Reporting and Meetings using up to date accounting software and business tools. Comparison to Internal and Industry Financial Benchmarks to assess the outcomes of various strategic decisions. 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. 1

4 DIRECTORS' REPORT Information on Directors Charles Thygesen Qualifications Special Responsibilities Russell Boyd Qualifications Special Responsibilities Kim Mitchell Qualifications Special Responsibilities Wayne Earea Qualifications Hazel Ensbey Qualifications Special Responsibilities Brian Spurway Qualifications Special Responsibilities Noelene Tauris Qualifications Special Responsibilities Ben Bernotas Qualifications Special Responsibilities Ron Rendell Qualifications Special Responsibilities Chairman Board Member since 28/10/2002 Board Chairman, Ex-officio all Committees, Chairman Finance Committee, Member Strategic Planning Committee, Member of Constitution and By Laws Committee. Deputy Chairman Board Member since 24/11/2011, Business Analyst, B.Comm, BSc; Completed C.D.I Training - Director Foundation and Management Collaboration, Finance for Club Boards, Governance Orientation. Chairman Strategic Planning Committee, Chairman of Catering, Beverage and Entertainment Committee, Member Finance Committee, Member Tournament Committee. Director Board Member since 29/11/2009; Completed all C.D.I. Training - Finance for Club Boards, Governance Orientation, Director Foundation and Management Collaboration. Chairman Gaming Committee, Member Finance Committee, Member Tournament Committee, Member Building and Maintenance Committee Director Board member since 23/11/2014, resigned 1/6/2015 Director Board Member since 7/11/2010; Completed C.D.I Training- Governance Orientation, Director Foundation and Management Collaboration. Chairperson Tournament Committee, Member of Catering, Beverage and Entertainment Committee, Member Gaming Committee, Member of Constitution and By Laws Committee. Director Board member since 23/11/2014 Chairman Building and Maintenance Committee, Member of Gaming Committee, Member of Tournament Committee, Member of Strategic Planning Committee. Director Board Member since 25/11/2012; Completed C.D.I. Training - Finance for Club Boards, Director Foundation and Management Collaboration. Chairperson Constitution and By Laws Committee, Member Finance Committee, Member Catering, Beverage and Entertainment Committee. Director Board Member since 25/11/2007, resigned 23/11/2014 Chairman Gaming Committee, Member of Food, Beverage and Entertainment Committee, Member Constitution and By Laws Committee. Director Director since 20/6/2012, resigned 23/11/2014; Club Management 30 years: Completed C.D.I Training - Governance Orientation Chairman Building/Maintenance Committee, Member Gaming Committee, Member Strategic Planning Committee, Member of Catering Committee 2

5 DIRECTORS' REPORT Meetings of Directors During the financial year, 13 meetings of directors were held. Attendances by each director were as follows: Directors' Meetings Number eligible to attend Number attended Charles Thygesen Russell Boyd Kim Mitchell Wayne Earea 6 4 Hazel Ensbey Brian Spurway 7 7 Noelene Tauris Ben Bernotas Ron Rendell 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 $3 each towards meeting any outstanding obligations of the company. At 30 June 2015, the total amount that members of the company are liable to contribute if the company is wound up is $21,681 (2014: $25,935). 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 2015 has been received and can be found on page 4 of the financial report. Signed in accordance with a resolution of the Board of Directors. Director Dated this Charles Thygesen 14th day of October

6 AUDITOR S INDEPENDENCE DECLARATION UNDER S 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015 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 13/10/2015 Address 39 Wharf Street Tweed Heads NSW

7 STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2015 Note Revenue 2 8,102,368 8,107,080 Other income 2-20,277 Employee benefits expense 3(a) (2,638,521) (2,568,142) Depreciation and amortisation expense 3(a) (544,253) (504,146) Interest paid (73,358) (90,970) Cost of sales 3(a) (1,253,490) (1,248,093) Other expenses 3(b) (3,584,624) (3,697,224) Profit/(loss) before income tax 8,122 18,782 Income tax expense 1(h) - - Profit/(loss) for the year 8,122 18,782 The accompanying notes form part of these financial statements. 5

8 STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE Profit/(loss) for the year 8,122 18,782 Other comprehensive income Other comprehensive income for the year - - Total comprehensive income for the year 8,122 18,782 The accompanying notes form part of these financial statements. 6

9 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 Note ASSETS Current Assets Cash and cash equivalents 4 294, ,050 Trade and other receivables 11,190 13,267 Inventories 116, ,538 Prepayments 7,272 24,726 Total current assets 429, ,581 Non-current assets Property, plant and equipment 5 9,657,800 9,345,048 Total non-current assets 9,657,800 9,345,048 TOTAL ASSETS 10,087,518 9,882,629 LIABILITIES Current liabilities Trade and other payables 6 616, ,770 Borrowings 7 168,929 35,518 Provisions 8 541, ,098 Total current liabilities 1,326,986 1,242,386 Non-current liabilities Trade and other payables 6 38,642 33,272 Borrowings 7 1,501,739 1,406,282 Provisions 8 53,217 41,876 Total non-current liabilities 1,593,598 1,481,430 TOTAL LIABILITIES 2,920,584 2,723,816 NET ASSETS 7,166,934 7,158,813 EQUITY Retained earnings 7,166,934 7,158,813 TOTAL EQUITY 7,166,934 7,158,813 The accompanying notes form part of these financial statements. 7

10 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 Balance at 1 July 2013 Comprehensive Income Profit/(loss) for the year Total comprehensive income attributable to the entity Balance at 30 June 2014 Balance at 1 July 2014 Comprehensive Income Profit/(loss) for the year Total comprehensive income attributable to the entity Balance at 30 June 2015 Retained Earnings Total 7,140,030 7,140,030 18,782 18,782 18,782 18,782 7,158,812 7,158,812 7,158,812 7,158,812 8,122 8,122 8,122 8,122 7,166,934 7,166,934 The accompanying notes form part of these financial statements. 8

11 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 Note CASH FLOWS FROM OPERATING ACTIVITIES Receipts from members and patrons 8,902,384 8,955,413 Payments to suppliers, employees and ATO (8,225,183) (8,172,040) Interest received 1,270 1,775 Receipt of insurance claim - 19,646 Interest paid (73,358) (90,970) Net cash generated from operating activities 605, ,824 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment - 4,088 Payment for property, plant and equipment 12(b) (413,423) (384,865) Net cash from/(used in) investing activities (413,423) (380,777) CASH FLOWS FROM FINANCING ACTIVITIES Repayment of borrowings CBA loan 7(b) (290,000) (300,000) Instalment arrangement (gaming system) (13,554) - Other (35,518) (39,472) Proceeds from borrowings 7(b) 80,000 - Net cash generated by/(used in) financing activities (259,072) (339,472) Net increase in cash held (67,382) (6,425) Cash on hand at beginning of financial year 362, ,475 Cash on hand at end of financial year 4 294, ,050 The accompanying notes form part of these financial statements. 9

12 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Note 1 Summary of Significant Accounting Policies Basis of Preparation South Tweed Bowls Club Ltd trading as South Tweed Sports applies 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 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 14 October 2015 by the directors of the company. Accounting Policies (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 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. Rent received from commercial and domestic properties is recognised in accordance with negotiated lease agreements. The periods recognised equate to those of the financial year under review. Rent received in advance for future years is deferred until those timeframes are reached and is recognised, in the meanwhile, as a liability in the statement of financial position. 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. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. Revenue from catering sales is recognised when food is acquired by patrons. All revenue is stated net of the amount of goods and services tax (GST). 10

13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (b) 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. In the event the carrying amount of buildings is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised in profit and loss. 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(d) 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: Class of Fixed Asset Depreciation Rate Land and improvements 0-2.9% Buildings % Plant and equipment 5-33% Leased plant and equipment 27.0% The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. (c) 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. Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting 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, amortised cost using the effective interest method, or cost. (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. 11

14 Derecognition NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 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. (d) 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 it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. (e) 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 and salaries 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, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The Company s obligations for long-term employee benefits are presented as non-current liabilities in 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 (revised from 9.25% to 9.5% with effect from 1 July 2014) 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. (f) (g) 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). 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. 12

15 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (h) (i) (j) (k) (l) 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 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. Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year. 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 Judgements 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. Key Estimates (m) 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 services were assessed at 49%, seven years at 75% and 9 years and beyond at 100%. Depreciation and impairment considerations Assessments are made of the useful life of buildings, land improvements, plant and machinery. Depreciation rates are set accordingly. Economic Dependence South Tweed Bowls Club Ltd trading as South Tweed Sports is dependent on the members and its patrons for the majority of its revenue used to operate the business. At the date of this report the Board of Directors has no reason to believe the members will not continue to support South Tweed Bowls Club Ltd trading as South Tweed Sports. Note 2 Revenue and Other Income Revenue Revenue from operating activities gaming 4,297,934 4,250,722 catering 1,897,432 1,921,538 beverage 1,337,693 1,372,134 entertainment and promotions 203, ,561 commission received 137, ,327 bowls and tournaments 87, ,365 rental 32,567 26,915 other 108,011 89,743 8,101,098 8,105,305 Other revenue interest received 1,270 1,775 1,270 1,775 Total revenue 8,102,368 8,107,080 13

16 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Other income insurance claim refund profit on sale of fixed assets Total other income Total revenue and other income , ,277 8,102,368 8,127,357 Note 3 (a) Expenses Note Expenses Employee benefits expense: employee benefits expense including contributions to defined contribution superannuation funds 2,638,521 2,568,142 employee on-costs expenses 3(b) 206, ,824 Total employee benefits expense 2,844,752 2,773,966 Depreciation and amortisation: buildings 218, ,408 plant and equipment 315, ,688 leased assets and hire purchase assets 10,050 10,050 Total depreciation and amortisation 544, ,146 Directors' honorariums 25,250 25,000 Cost of sales beverage 571, ,563 catering 681, ,530 1,253,490 1,248,093 (b) Other entertainment & promotions 1,084,758 1,085,530 gaming 921, ,820 administrative & overheads 759, ,539 repairs & maintenance 300, ,056 employee on costs 3(a) 206, ,824 catering 139, ,041 bowling costs 78,914 89,846 beverage 24,289 54,805 members amenities 22,852 31,387 tournament costs 21,388 23,431 sub - club costs 14,610 15,173 finance costs 10,572 10,772 3,584,624 3,697,224 Note 4 Cash and Cash Equivalents CURRENT Cash at bank - unrestricted 294, ,050 Total cash and cash equivalents as stated in the statement of financial position , ,050 Total cash and cash equivalents as stated in the cash flow statement 294, ,050 14

17 Note 5 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE LAND AND BUILDINGS Freehold land: At cost 3,580,238 3,580,238 Less accumulated depreciation (951,776) (911,599) Total land 2,628,462 2,668,639 Buildings: At cost 8,522,986 8,522,986 Less accumulated depreciation (3,564,856) (3,386,241) Total buildings 4,958,130 5,136,745 Total land and buildings 7,586,592 7,805,384 PLANT AND EQUIPMENT Plant and equipment: At cost 6,350,202 6,375,097 Less accumulated depreciation (4,378,295) (4,944,784) 1,971,907 1,430,313 Leased and HP assets: At cost 150, ,000 Less accumulated depreciation (50,699) (40,649) 99, ,351 Total plant and equipment 2,071,208 1,539,664 Total property, plant and equipment 9,657,800 9,345,048 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: Note Land & improvements $ Buildings $ Plant and Equipment $ Leased & HP Assets $ 2015 Balance at the beginning of the year 2,668,639 5,136,745 1,430, ,351 9,345,048 Additions at cost 12(b) , ,005 Depreciation expense (40,177) (178,615) (315,411) (10,050) (544,253) Carrying amount at the end of the year 2,628,462 4,958,130 1,971,907 99,301 9,657,800 Note 6 Property, Plant and Equipment Trade and Other Payables CURRENT Trade payables 304, ,383 Deferred income 61,652 77,948 Payables - gaming machines - 151,116 Other payables 98,715 95,450 Clearing accounts 82, ,177 GST payable 68, , , ,770 NON-CURRENT Deferred income 38,642 33,272 38,642 33,272 Total $ 15

18 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (a) Note Financial liabilities at amortised cost classified as trade and other payables Trade and other payables: Total current 616, ,770 Total non-current 38,642 33, , ,042 Less deferred income (100,294) (111,220) Financial liabilities as trade and other payables , , $ 2014 $ Note 7 Borrowings CURRENT Hire purchase liabilities Instalment arrangement NON-CURRENT Instalment arrangement Mortgage loan - CBA ,282 35,518 7(d) 162, ,929 35,518 7(d) 311,739 6,282 7(b) 1,190,000 1,400,000 1,501,739 1,406,282 TOTAL BORROWINGS 13 1,670,668 1,441,800 Hire purchase liabilities are secured by the underlying HP assets. (a) The carrying amounts of non-current assets pledged as Freehold land and buildings 5 7,586,592 7,805,384 (b) Mortgage loan details Background In the 2013 financial year a loan of $2,000,000 was provided by Commonwealth Bank Australia (CBA) to the company. These lending facilities were renewed, on the same terms and conditions, one year ahead, in March Terms The loan is called a "Better Business Loan - variable rate". The facility has a 'redraw' clause, which means the company can redraw funds up to the original $2,000,000 provided, during the period of the loan. Interest only is the minimum repayment required until 26 March The loan is due for settlement on this date. The interest rate is variable. Security First Registered Mortgage by South Tweed Bowls Club Ltd over non-residential property situated at 4-8 Minjungbal Dr and 1 Altair Street Tweed Heads South NSW 2486 General Security Interest by South Tweed Bowls Club Ltd comprising: - First ranking charge over All Present and After Acquired Property - Excluding any property that does not relate in any way to the Registered Club business of the Grantor known as South Tweed Sports (the Business) or used in any way in relation to the Business. (c) Exposure of loan The exposure of the loan to interest rate fluctuations are as follows: Variable 1,190,000 1,400,000 (d) Instalment arrangement Aristocrat Technologies Australia Pty Ltd has granted the company a 3 year, interest free, instalment arrangement to acquire a poker machines system to which $474,386 remains owing at 30 June 2015; $162,647 is due within 12 months. Monthly repayments of $13,554 are required. The arrangement is secured to the extent that title to the poker machines system remains with Aristocrat until the final instalment has been paid. 16

19 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Note 8 Provisions Note CURRENT Provision for employee benefits: annual leave 8(a) 288, ,953 Provision for employee benefits: long service leave 8(a) 192, ,891 Provision for employee benefits: sick leave 8(a) 9,039 5,630 Linked jackpot liability 8(b) 51,161 26, , ,098 NON-CURRENT Provision for employee benefits: long service leave 8(a) 53,217 41,876 53,217 41, , ,974 Analysis of total provisions: Opening balance at 1 July 2014 Additional provisions raised during year Amounts used Balance at 30 June 2015 Employee Benefits Linked Jackpot Liability Total 468,350 26, , ,830 24, ,367 (150,306) - (150,306) 543,874 51, ,035 (a) Employee Provisions Employee provisions represents amounts accrued for annual leave and long service leave. The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the company does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service. 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 upon historical data. The measurement and recognition criteria for employee benefits have been discussed in Note 1(e). (b) Provision for Linked Jackpot Liability Poker machine link jackpots is the current balance of available jackpots that accumulate from turnover play on poker machines. These jackpots are returned to players by achieving the required combination for the link jackpot on the machine being played. Note 9 Hire Purchase Commitments Payable minimum lease payments not later than 12 months 6,363 38,175 later than 12 months but not later than 5 years - 6,363 6,363 44,538 Note 10 Capital and Leasing Commitments The hire purchase commitment is in regards to the chiller. Events After the Reporting Period The directors are not aware of any significant events since the end of the reporting period, other than the following: On the 2nd July Alan Lynch was declared the successful candidate for the vacant position of Club Director, as a result of Casual Director Vacancy Election. 17

20 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Note 11 Key Management Personnel Compensation a. Key Management Personnel Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel. The totals of remuneration paid to key management personnel (KMP) of the company during the year are as follows: Key management personnel compensation 340, ,998 Note 12 (a) Cash Flow Information Reconciliation of Cash Flow from Operating Activities with Current Year Surplus Profit after income tax 8,122 18,782 Non-cash flows: Depreciation and amortisation expense 544, ,146 Fair value gains on investments in shares held for trading Gains on disposal of property, plant and equipment - (632) Changes in assets and liabilities: (Increase)/decrease in accounts receivable and other debtors (8,849) 46,194 Increase/(decrease) in accounts payable and other payables (76,878) 113,638 Increase/(decrease) in provisions 100,061 4,303 (Increase)/decrease in inventories on hand 20,950 7,858 (Increase)/decrease in prepayments 17,454 19, , ,824 (b) Property Plant and Equipment Additions to the value of $857,005 were recognised in property plant and equipment in the current financial year, as disclosed in note 5. In regards thereto, $413,423 were paid via cash and cash equivalents and are disclosed in cash flow from investing activities. The balance, namely $443,582 was acquired through an instalment arrangement (borrowings) refer 7(d). Repayment of instalments involve the outflow of cash and cash equivalents and are disclosed in the cash flow from financing activities. Note 13 Financial Risk Management The company s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, receivables and payables, and HP liabilities. The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Note Financial assets Cash and cash equivalents 4 294, ,050 Trade and other receivables 11,190 13,267 Total financial assets 305, ,317 Financial liabilities Financial liabilities at amortised cost: trade and other payables 6(a) 554, ,822 borrowings 7 1,670,668 1,441,800 Total financial liabilities 2,225,255 2,117, $ 2014 $ 18

21 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Note 14 Entity Details The registered office of the entity is: South Tweed Bowls Club Ltd trading as South Tweed Sports 4 Minjungbal Drive Tweed Heads South NSW 2486 The principal place of business is: South Tweed Bowls Club Ltd trading as South Tweed Sports 4 Minjungbal Drive Tweed Heads South NSW 2486 Note 15 Members' Guarantee The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $3 each towards meeting any outstandings and obligations of the entity. At 30 June 2015 the number of members was

22 DIRECTORS DECLARATION The directors have determined that the company is a reporting entity that does not have public accountability as defined in AASB 1053: Application of Tiers of Australian Accounting Standards and that these general purpose financial statements should be prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements. In accordance with a resolution of the directors of South Tweed Bowls Club Ltd trading as South Tweed Sports, the directors declare that: 1. The financial statements and notes, as set out on pages 5 to 19, are in accordance with the Corporations Act 2001 and: (a) (b) comply with Australian Accounting Standards - Reduced Disclosure Requirements; and give a true and fair view of the financial position of the company as at 30 June 2015 and of its performance for the year ended on that date. 2. In the directors opinion there are reasonable grounds to believe that the entity will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors. Director Charles Thygesen Dated this 14th day of October

23 Report on the Financial Report (i) (ii) Other matters INDEPENDENT AUDITOR S REPORT TO THE MEMBERS OF We have audited the accompanying financial report of South Tweed Bowls Club Ltd trading as South Tweed Sports, which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors declaration. Directors' Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor s judgment, 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 South Tweed Bowls Club Ltd trading as South Tweed Sports, would be in the same terms if given to the directors as at the time of this auditor s report. Opinion In our opinion, the financial report of South Tweed Bowls Club Ltd trading as South Tweed Sports is in accordance with Corporations Act 2001, including: giving a true and fair view of the company's financial position as at 30 June 2015 and of its performance for the year ended on that date; and complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations Matters Relating to the Electronic Publication of the Audited Financial Report This auditor s report relates to the financial report of South Tweed Sports for the year ended 30 June 2015 included on South Tweed Sports' website. The Club's directors are responsible for the integrity of South Tweed Sports website. We have not been engaged to report on the integrity of the South Tweed Sports website. The auditor s report refers only to the subject matter described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these statements. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are advised to refer to the hard copy of the audited financial report to confirm the information contained in this website version of the financial report. 21

24 Name of Firm Watson and Fenton Chartered Accountants Auditor's signature: Address: Barry Dunnett 39 Wharf Street Tweed Heads NSW 2485 Dated this 15th day of October