Canberra Racing Club Incorporated Annual Report 2016 - 2017 CANBERRA RACING CLUB COMMITTEE

COMMITTEE MEMBERS

CONTENTS

Paul Meiklejohn Tom Glover Stephen Heppenstall Les Boag Chairman Vice Chairman Treasurer Chairman’s Report 01 Racing Report 08 Vale Notices 14 Sponsors 17 Financial Statements 18 Report of the Committee 19 Geoff Bloom John Dess Keith Dryden Ian Mackay Resigned 27 June 2017 Appointed 27 June 2017 Statement of Comprehensive Income 20 Statement of Financial Position 21 Statement of Changes in Equity 22 Statement of Cash Flows 23 Notes to the Financial Statements 24 Independent Auditor’s Report 34 Paul Miller Tim Olive Christopher Ward

SENIOR EXECUTIVE STAFF LIFE MEMBERS

Bob Barlow Peter Faulkner Peter Huddy Kath Mornement Jim Munro AO (passed away 7 April 2017) Roger Norton Neville Prendergast Peter Stubbs Andrew Clark CA (passed away 24 July 2017) CEO Chief Financial Officer Howard Powell AM Financially, the Club has had a solid year, returning an operating profit overseas, contractual negotiations for the purchase of components of $70,479, whilst maintaining cash reserves of $2,419,622 in a year and purchasing machinery and equipment to enable mixing of the of significant capital works expenditure and delivering a strong balance surface material. The project was undertaken ‘in-house’ with the Club sheet result as detailed in the Financial Report. Outlined below is a précis procuring all the equipment to produce the synthetic track surface. of the activities of the Club for the 2016/2017 financial year. The ongoing benefit of having the mixing equipment is significant. It provides the opportunity for ongoing top ups of the surface, which will PRIZE MONEY extend the longevity of the track surface indefinitely. It is proposed The Committee continues to be committed to increasing prize money that the surface of the Acton track will be refurbished on an ongoing within the Club’s financial capabilities. In 2016/2017 the Club paid out basis from now on. I particularly wish to acknowledge the significant $4,539,152 in prize money. During the process of the compilation of contribution and dedication to the project by Adam Ayre Racecourse the 2017/2018 Club Budget, the Committee approved increases in and Facilities Manager. Adam was a major factor in the success of prize money of $262,347 for 2017/2018 bringing the total prize money the project. expenditure to $4,801,500. In 2017/2018, standard race prize money will be $20,500 per race. A new initiative is to pay prize money at a CAPITAL WORKS EXPENDITURE minimum of $500 down to 10th place. The latest approved prize money The Committee is dedicated to the ongoing upgrade of the facilities, increases represent an increase of 18.56% in prize money over two years. racecourse and training centre. In accordance with this objective, the more significant capital expenditure approved by the Committee included ACTON TRACK REFURBISHMENT the following projects and equipment replacement: The replacement of the surface of the Acton Track was completed in September 2016. Racing recommenced on the Acton Track on 26 • $2,193,363 – May 2017, and at the time of writing, seven race meetings have been Replacement of the Acton Track surface and purchase of equipment conducted on the track with outstanding success. We have received • $96,363 – Case 105c 4wd tractor numerous compliments from visiting trainers and jockeys regarding the • $92,409 – Senpos register systems for bar and catering operations quality of the new Acton track surface. The completed project cost was • $32,893 – GM 360 mower CHAIRMAN’S REPORT $2.193 million, and has been fully financed by the Club using its own • $31,000 – Blecavator for maintenance of Acton Track financial resources without the need to borrow any additional funds. • $30,979 – 13 HP replacement computers The project has involved substantial effort, including ongoing testing On behalf of the Committee, I am pleased to report that the Canberra Racing Club (the Club) has made significant progress over the past year in terms • $25,490 – Clark GTS25 forklift. to ensure the surface meets the required site specifications for safe of our enduring commitment to ensuring the ongoing viability and success of thoroughbred racing in the ACT, as well as the successful operations of usage as well as longevity, securing wax and fibre components from the Club. We have continued our strong strategic focus by setting stretch but achievable priorities over the next decade. With that particular thought in mind, I present the Annual Report of the Canberra Racing Club Incorporated (the Club) for the 2016/2017 Financial Year.

It would be remiss of me if I did not mention at the outset the tragic and untimely death of Riharna Thomson on 3 March 2017 as a result of an accident that occurred at Thoroughbred Park on the morning of 28 February. Riharna’s death impacted significantly on the entire ACT racing community as well as in other jurisdictions, especially NSW. I wish to acknowledge and thank all those who were closely involved in managing the aftermath of this tragic event, which is still ongoing.

I particularly want to thank our CEO, Peter Stubbs, as well as all members of his team here at Thoroughbred Park who were all personally affected and distressed by this event. I also would like to acknowledge the support provided by those associated with the Keith Dryden/Scott Collings stable, Racing NSW, and the many people from within the racing industry who still provide their support during this stressful period. Also, I wish to acknowledge Racing NSW Chaplain, Pastor Colin Watts, and Pastors Bob and Stephen Prior who all provided unselfish and compassionate support to Riharna’s family and the close knit ACT racing fraternity from the time of the accident to the present. We all know that we ultimately have to move on from adversity and tragedy, but this event has left an indelible print in many people’s memories and lives that will likely never be erased. RIP Riharna.

KEY POINTS CONTAINED WITHIN THIS REPORT: • Prize money increased by 12.08% • A total of $4,539,152 was paid out in prize money for 2016/2017 (includes $62,500 for the Provincial Championships) • Acton Track was resurfaced at a total cost of $2.193 million – project was completed in September 2016 • Operating profit of $70,479 • The Club is debt free and has cash reserves of $2,419,622.

The Club has continued to fulfil its responsibilities as a Principal Racing Authority and achieve the objectives contained in the Club’s Constitution.

1 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 2 MEMORANDUM OF UNDERSTANDING BETWEEN THE ACT GOVERNMENT & CANBERRA RACING CLUB & CANBERRA HARNESS RACING CLUB In February 2017, the Club together with the Canberra Harness Racing Club commenced negotiations with the ACT Government for the review and renewal of a Memorandum of Understanding (MOU) between the parties. Terms were agreed for a new MOU to commence from 1 July 2017 for a five year period.

Key elements of the MOU include: • Budget funding • Performance reporting • Communication exchange • Integrity • Animal welfare • Establishing a Development of Industry & Government Committee.

MEMBERSHIP REVIEW In April 2017, the Committee undertook a review of Club membership. From the review, the Committee adopted a strategy to increase membership that replaced the existing Associate Card with a new Guest Card. The Committee’s rationale was to encourage members, who would normally purchase what is now the Guest Card, to see the benefits and greater value of the Guest Card recipient becoming a full member of the Club.

The anticipated benefits of increased membership arising from this strategy include, but are not limited to, communicating to a wider member base; increased interest in racing; increased participation in Committee elections; a wider member base from which to draw future Committee Members; possibly improving the membership gender imbalance; and promotion in various submissions to government, corporate bodies and sponsors.

To assist in achieving these outcomes, every member now receives the full value of their membership back through the offer of a redeemable food and beverage voucher. It is hoped that an increase in membership GOVERNOR-GENERAL SPONSORSHIP CONTRACTS from this process will further accelerate the gradual increase in For the second consecutive year, the Club was honoured to host Race sponsorship is a very important aspect of every race day and is necessary to provide funding support for club funded prize money. membership, which has been achieved in recent years. In 2016/2017, Governor-General Sir Peter Cosgrove and Lady Cosgrove at the We are extremely pleased that Mercedes-Benz Canberra (John McGrath Auto Group) is the sponsor of our flagship race, the Black Opal Stakes. the combined number of Members and Associates was the highest for Mercedes-Benz Canberra Black Opal Stakes race meeting. The Governor- The Club is fortunate to have the continuing support of many sponsors at all levels, and the Club is extremely appreciative of their support. six years with 836 Members and 292 Associates. General and Lady Cosgrove attended the Chairman’s official function for Many of our sponsors have been with us for several years, and we look forward to their continuing support. afternoon tea, and the Governor-General presented the trophy to the EQUINE WELFARE FUND winning owners of the Mercedes-Benz Black Opal Stakes. Throughout the year, the Club signed a number of significant and long-term sponsorship contracts, including: In May 2017, the Committee accepted the invitation of Racing NSW to • John McGrath Auto Group – 3 years – re-signed for the Black Opal Stakes 2018-2020. join their Equine Welfare Fund and contribute 1% of all prize money to the GAMING MACHINES Numerous existing long-term sponsorship contracts remain in place, including: fund. Racing NSW has purchased a 2,600 acre property at Capertee to The Committee remains committed to the sale of the Club’s fourteen • Tabcorp – 4 years remaining – Sponsor for the TAB.com.au Canberra Cup and also Melbourne Cup day. be used for the rehabilitation, retraining and rehoming of thoroughbreds gaming machines, all of which are currently in storage. The gaming • Sky Racing – 4 years remaining – Vision rights, Race Callers Cup, and Black Opal Stakes day. after their racing careers. Canberra trained horses are eligible to be machines have not delivered adequate financial returns since the • Lion – 4 years remaining – Beer rights and sponsor of the Canberra Guineas. rehabilitated and retrained at this property and other properties machines were installed. Sale negotiations are ongoing and are expected • Treasury Wine Estates – 3 years remaining – Wine rights sponsor. managed by Racing NSW. to achieve a favourable outcome within the foreseeable future.

3 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 4 CONCLUSION It has been my sincere privilege to have been Chairman of the Canberra Racing Club in 2017. I look forward to serving the Committee in whatever capacity I can in 2018. I thank and acknowledge the important contributions of all members of the Committee over the past year.

It has been a difficult year for the Committee in many respects, and I am very proud that we have delivered successfully on all key issues. I pay particular homage to past Chairman, Chris Ward, who led the Committee so well for the preceding four years. Four years is a long time and a heavy commitment for anybody and especially when one has a career and professional practice to manage at the same time, as does Chris. I also thank Tom Glover and Stephen Heppenstall for their strong support to the Committee, and to me, in their capacities as Vice Chairman and Treasurer respectively over the past year.

The Committee and I have been very fortunate to have been able to rely on our CEO, Peter Stubbs, and his dedicated and talented team for support throughout the year. We have been lucky to have had stability and continuity in all key Club management roles over recent years, and we hope this will continue long into the future. Running this Club is very demanding on all concerned and having the right team is essential for WAGERING TURNOVER AND REVENUE FROM WAGERING COMMITTEE RESIGNATIONS & RETIREMENTS success. Thank you, Peter, and all members of your team for another The Club receives important revenue from licensed wagering operators to the Club from RFL. RFL revenue has continued to grow since the GEOFF BLOOM year of valuable service. It is greatly appreciated and definitely not taken across Australia who accept bets on Canberra Thoroughbred races. legislation was introduced in 2010 and is now clearly the second highest On 27 June 2017, the Committee reluctantly accepted the resignation of for granted. The legislation that allows the collection of this revenue is known as source of revenue for the Club. RFL revenue is essential for the funding long serving and dedicated Committeeman Geoff Bloom. Geoff has been Race Field Legislation (RFL), the Act for which was passed by the ACT of prize money as well as the ongoing operations of the Club. The Club a stalwart of the Canberra Racing Club in the truest sense of the word. Legislative Assembly in 2010. continues to market directly to punters through enhanced smartphone Geoff had two four-year terms as Chairman of the Club from 1998 to Finally, thank you to all of our members for your interest access, marketing of selections and best bets, marketing to Facebook 2002, and from 2006 to 2010 (noting that the Club Constitution allows and support in continuing to make the Canberra Racing The Club administers RFL on behalf of the three codes of racing in punters, Sky Racing television advertising, and website promotion. only four consecutive one-year terms in any sequence for the Chairman), Club the epitome of what a Racing Club and Principal the ACT. This involves reporting to the Minister; licensing of wagering and Vice Chairman from 1996 to 1998. Geoff was Chairman when the Racing Authority should be. There are numerous operators; processing and collection of fees; and ensuring compliance. The tables and graphs below demonstrate the breakdown of wagering Club became a Principal Club in 2001. He represented the Club as a There are currently forty-eight wagering operators licensed to bet on ACT turnover on Canberra thoroughbred races between TAB Operators, Director on the Australian Racing Board (ARB) from 2002 until it was challenges ahead for us as a Club, and your ongoing racing. The combined total wagering turnover on Canberra Thoroughbred Corporate Bookmakers, and Individual Race Day Bookmakers and disbanded in 2015, when the ARB became known as Racing Australia support will be essential to our continuing success. races in 2016/2017 was $117,145,816 returning $2,302,825 in revenue provide a comparison over the two years 2015/16 and 2016/17. resulting from the merger of the ARB, Racing Information Services Australia, and the Australian Stud Book. 2015/2016 Wagering Turnover 2016/2017 Wagering Turnover The Committee is keen to engage with members as All TABs combined $62,673,076 All TABs combined $60,597,702 TOM GLOVER often as possible. Member’s feedback and support Corporate Bookmakers $45,617,763 Corporate Bookmaker $55,502,803 Vice Chairman Tom Glover has advised the Committee of his decision is essential in providing future direction for the Club, Individual Bookmakers $1,206,351 Individual Bookmaker $1,045,311 to retire from Committee and not nominate for re-election. Tom was particularly as we enter a period of closer scrutiny Total Wagering Turnover on Club races $109,497,190 Total Wagering Turnover on Club races $117,145,816 appointed to the Committee in 1995. He held the position of Treasurer for the period 2002 to 2016 following which he was appointed as Vice and greater accountability to all key stakeholders. Chairman. Tom has had a lifelong commitment to and a passion for the We must be vigilant at all times, and strive to keep racing industry. He has been involved in numerous facets of the industry, ahead of the curve lest we lose control of our destiny, especially breeding, owning and racing horses for over 35 years. The wise TAB TAB counsel, wealth of experience, generosity of time and good humour of which we must strive to retain in our own hands. Corporate Bookmaker Corporate Bookmaker 42% 47% both Geoff and Tom will be sorely missed by the Committee. Together, 57% Individual Bookmaker 52% Individual Bookmaker they have over 40 years of Committee membership which is a huge loss for the Club in one fell swoop. We wish them both well in their retirement Paul Meiklejohn from the Committee and their respective future endeavours. Chairman

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5 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 6 COMMUNITY SUPPORT

RACING REPORT

IMAGE NEEDED

ACKNOWLEDGMENTS

For their support, I would like to acknowledge and thank the following:

Chief Minister, Mr Andrew Barr MLA Deputy Chief Minister, Ms Yvette Berry MLA ACT Attorney General, Minister Responsible for Racing & Gaming, Mr Gordon Ramsay MLA President, Racing Appeals Tribunal, Mr John Kalokerinos The Board CEO and Staff of the Gambling & Racing Commission Racing Australia Racing NSW Media, including the many ACT media outlets and their staff Canberra Racing Club members Racehorse owners Trainers Jockeys On-course bookmakers Wagering operators Punters

7 2016/17 Canberra Racing Club Incorporated Annual Report 8 WINNERS RACING REPORT MERCEDES-BENZ CANBERRA BLACK OPAL STAKES & TAB.COM.AU CANBERRA CUP - SUNDAY 7 MARCH 2017

Race Prize Money Winner Trainer Jockey For the 2016/2017 financial year, the Club scheduled and conducted 25 GROUP & LISTED RACES 2017 Mercedes-Benz Canberra Black Opal Stakes (Group 3) $300, 000 Trapeze Artist Gerald Ryan Tim Clark race meetings. Of these, 23 races took place on the turf Course Proper Currently, the Club conducts one Group 3 and three Listed races, Gai Waterhouse and three on the Acton (synthetic) Track comprising a total of 191 races the details and conditions of which are described below: 2017 tab.com.au Canberra Cup (Listed) $200, 000 Dark Eyes Tim Clark & Adrian Bott with an average field size of 9.62. Detailed statistics on each race 2017 Casino Canberra National Sprint (Listed) $130, 000 Gold Symphony Peter & Paul Snowden Kerrin McEvoy meeting are contained in this report. It should be noted that average field sizes over the period from December 2016 to June 2017 increased to • Group 3 – $300,000 Mercedes-Benz Canberra Black Opal Stakes – 2017 XXXX Gold Canberra Guineas (Listed) $130, 000 Eusebio John O’Shea Tommy Berry 10.51. This was a direct consequence of the Club’s decision in November Open for two-year-old (set wts + pen.) 1200 metres Brock Ryan (a) Sky Racing Maiden Plate $26,500 Smart Amelia James Cummings 2016 to increase prize money for all races to a level comparable with • Listed – $200,000 tab.com.au Canberra Cup – Gai Waterhouse that offered by all thoroughbred racing clubs in the region surrounding Open quality handicap 2000 metres Canprint Benchmark 65 Handicap $26,500 Chloe’s Comet Adam Hyeronimus & Adrian Bott the ACT. Through its Principal Racing Authority responsibilities, the Club • Listed – $130,000 Casino Canberra National Sprint – Barbara Joseph Affinity Constructions Aust. P/L Benchmark 65 $26,500 Gold Symphony Kayla Nisbet conducted race meetings throughout the 2016/2017 financial year, Open quality handicap 1400 metres & Paul Jone promoted and developed racing, and carried on the control of racing. • Listed – $130,000 XXXX Gold Canberra Guineas – Singapore Airlines Camarena Quality Handicap $60,000 Highly Geared Garry Kirkup Matthew Cahill Open three-year-old (set wts +pen.) 1400 metres RETURNS TO OWNERS PRIZE MONEY & CANBOBS Throughout the year, the Club distributed $4,539,152 in prize money The Australian Pattern Committee is sanctioned by Racing Australia CONGRATULATIONS TO ALL OWNERS, TRAINERS, JOCKEYS & BREEDERS WHO WERE SUCCESSFUL DURING THE 2016/2017 RACING SEASON. across 191 races, an increase of $489,276 over the previous year. to make recommendations as to which Australian races are worthy of The CanBOBS bonus scheme, introduced on 1 September 2011, “Black Type” status. The listing of Group and Listed races are approved registered a decline in bonuses paid out in 2016/2017 compared to and published by Racing Australia and are accepted by the International the previous year. In 2016/2017, the Club paid out 49 $5,000 bonuses Cataloguing Standards Committee for publication in ‘The Blue Book’, totalling $245,000 to Racing NSW BOBS eligible two and three-year-old thereby achieving international recognition for Australia’s best races. horses, compared with 45 CanBOBS bonuses paid totalling $225,000 Each year, Group and Listed races are given a benchmark rating, which is in 2015/2016. CanBOBS bonuses are not included in the prize money measured against the benchmark for inclusion in each category of Group figures quoted above but are included in prize money in the financial races or as a Listed race. statements.

Benchmarks 2YO 3YO F&M Open

Group 1 110 (105F) 115 (110F) 110 115 Trapeze Artist Winner Mercedes-Benz Canberra Black Opal Stakes Dark Eyes Winner Tab.com.au Canberra Cup Winning Owners: B Vieira, Mrs S G Vieira, T Vieira, Mrs C Vieira-Choy & J A Choy Winning Owner: S Darby, P Ingerman, C A London, M Jones, Mallee Boys, Group 2 105 (100F) 110 (105F) 105 110 P J Taunton, G R Hunt, S F Lawrence, C S Lawrence, M J Kayem, L J Gore, G F Doyle, N Lal, D R Murray, P Q Conroy, J L Conroy & Snitzelation (Mgr: D R Mckinnon) Group 3 100 (95F) 105 (100F) 100 105

Listed 95 (90F) 100 (95F) 95 100

In 2017, Canberra Listed races achieved the following benchmarks with comparative figures for 2012, 2013, 2014, 2015 and 2016:

Race Year Black Opal Canberra Cup National Sprint Canberra Guineas

Benchmarks 2017 101.3 100.5 108.3 102

Benchmarks 2016 103.3 104.5 100.5 96

Benchmarks 2015 101.8 99 98.5 97.5

Benchmarks 2014 101.5 97.8 108 105.3 Gold Symphony Winner Casino Canberra National Sprint Eusebio Winner XXXX Gold Canberra Guineas Benchmarks 2013 102.5 105 101.5 104.8 Winning Owners: Triple Crown Syndications (Mgr: C H Ward), R L Humberston, Winning Owner: Godolphin R Khambatta, S Khambatta, T Eathorne, Mrs M J Coorey, A N Coorey, Benchmarks 2012 105.8 101.3 101 101.8 C Dawes, E Tyrell, D W Constantin, D R Sneyd, Z S Novoselac, M S J Legrand, R W Burton & A Glavic

9 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 10 COURSE RECORDS SET THIS SEASON COURSE PROPER & ACTON TRACK STATISTICS 2016-2017

Track Distance Name Time Date Weight KGs Rating WINNING RACING STYLE Av.Time Fastest Av.Time Last Last Course Proper 1000m Wanna Get A What 56.84 18.03.2017 58.5kg Good 4 AVG/ Leading Last 600m Date NOMS ACCPTS Races STRS Midfield Back 600m 600m Temperature Rating Rail STRS 2 or 3 Sprint Sprint of Races 1600+ Course Proper 2000m Sworn In 2:01.46 11.12.2016 58.0kg Good 3 Races Day

15.07.16 147 96 8 76 9.5 5 2 1 38.42 40.70 36.85 13 Heavy 9 +3m Acton Track 1900m Illyrian 1:55.29 23.06.2017 57.0kg Synthetic 29.07.16 113 62 7 54 7.7 1 4 2 38.53 40.72 37.25 12 Heavy 10 +9m

12.08.16 108 77 8 61 7.6 2 2 4 37.27 38.34 36.39 10 Heavy 8 True

26.08.16 104 65 8 64 8.0 3 2 3 37.94 39.45 36.72 12 Heavy 10 +4m

09.09.16 112 78 8 61 7.6 4 3 1 39.00 41.20 37.81 17 Heavy 9 +8m

23.09.16 158 98 8 79 9.9 4 3 1 37.28 38.53 35.64 18 Heavy 10 True

07.10.16 146 90 8 69 8.6 2 4 2 37.81 39.09 36.21 22 Heavy 10 +4m

21.10.16 101 71 8 64 8.0 5 2 1 34.29 34.13 33.77 21 Good 3 +8m

01.11.16 121 86 8 83 10.4 2 4 2 35.57 35.51 34.50 18 Good 3 True

13.11.16 105 73 6 55 9.2 5 1 0 36.26 35.84 34.73 18 Soft 6 +3m

25.11.16 104 84 8 77 9.6 2 4 2 35.05 35.56 34.29 24 Soft 5 +5m

11.12.16 103 74 7 59 8.4 3 1 3 35.13 36.70 34.00 27 Good 3 7m

29.12.16 164 101 8 79 9.9 3 4 1 34.98 35.97 33.90 32 Good 4 True Out 3mtrs 06.01.17 101 72 7 66 9.4 2 3 2 35.10 37.30 33.85 30 Good 3 1000m to 300m 20.01.17 133 94 8 84 10.5 5 2 1 35.99 37.70 34.45 32 Good 4 +5m

03.02.17 91 72 8 63 7.9 3 0 5 34.93 36.99 33.66 33 Soft 4 9m

19.02.17 128 91 7 69 9.9 2 4 1 35.00 35.97 34.29 28 Soft 5 True

05.03.17 177 122 8 98 12.3 3 3 2 34.55 36.97 33.03 28 Soft 6 3m

Mercedes-Benz Canberra Black Opal Stakes 5 March 2017 18.03.17 125 87 6 73 12.2 4 2 0 34.69 36.80 33.63 24 Good 4 Out 6m

07.04.17 147 102 8 79 9.9 3 3 2 34.60 37.75 33.96 22 Good 4 Out 9m

21.04.17 167 112 8 90 11.3 2 4 2 34.59 35.75 33.70 19 Good 4 True

10.05.17 131 91 7 79 11.3 3 2 2 35.09 37.00 34.07 18 Good 4 True

26.05.17 151 106 8 90 11.3 3 4 1 35.27 36.53 34.43 17

09.06.17 127 98 8 78 9.8 3 1 4 34.69 36.70 33.43 13 Acton Track

23.06.17 145 101 8 87 10.9 0 6 2 35.39 36.46 34.14 13

Total 3209 2203 191 1837 74 70 47.0

Average 9.62 38.74% 36.65% 24.61%

11 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 12 RETURN TO ACTON TRACK RACING Racing returned to the refurbished Acton (synthetic) Track on Friday 26 May 2017 after almost a four-year break from racing on the track. The last race meeting on the Acton Track was in August 2013. In the first three race meetings on the Acton Track, an average field size of 10.7 was achieved.

SUCCESS OF CANBERRA HORSES Highway Race Winners Canberra trained horses continued on from their success last year with Date Horse Trainer some outstanding performances. The performances of Single Gaze and Fell Swoop are detailed in the Focus Award below. Both horses had very 20.08.2016 Bootlegging Norm Gardner VALE NOTICES good seasons, with Single Gaze winning the $200k Group 2 PJ O’Shea 12.11.2016 Darts Away Barbara Joseph/Paul Jones Stakes at Doomben, and Fell Swoop was placed in three of the major Group 1 races in Australia including third in the $2.6 million T J Smith 19.11.2016 Thelittleracketeer Matthew Dale at Randwick. A special mention is needed for Maryore for winning the 24.12.2016 Force of Magic Keith Dryden/Scott Collings

$450,000 Provincial Championships Final at Randwick. Maryore had 31.12.2016 Atom Eve Norm Gardner LIFE MEMBER - JAMES MUNRO AO 10 starts for the season. In addition to the Provincial Championships James (Jim) Munro, a former Brigadier General and a life member of the Canberra Racing Club 07.01.2017 Chosen Prayer Keith Dryden/Scott Collings Final, she won two other races, the Provincial Championship Heat and passed away on 7 April 2017 aged 96. He had a passion for racing and raced horses for over 25 a Wednesday Canterbury Park win. Her other placings for the season 21.01.2017 Super Star Bob Matthew Dale years with the word “Time” included in the name of most of his horses including American Time, included a 2nd in the $100k Spear Chief Listed race at Doomben. 15.04.2017 Mercurial Lad Barbara Joseph/Paul Jones Oscar Time, Orange Time and London Time. Many of his horses were raced in partnership with Maryore is owned by members of the Palombi Family and trained on the Corkhill Family. Added to his many wins, Jim’s horses recorded two placing in the Canberra 29.04.2017 Wanna Get A What Gratz Vella course by Philip Courtney. Canberra-trained horses have had a successful Cup and the Black Opal Stakes, Sydney Metropolitan winners and a runner in the Golden Slipper. 20.05.2017 Hay Now Matthew Dale year in the Highway Races for country trained horses on the Sydney Jim was a great Australian and racing man. Saturday Metropolitan program, collectively winning twelve Highway 27.05.2017 Clipper Matthew Dale Races during the financial year. Canberra Highway Race winners for the 10.06.2017 Clipper Matthew Dale 2016/2017 financial year were: LIFE MEMBER - NEVILLE PRENDERGAST On 24 July 2017, Neville Prendergast passed away in Melbourne aged 88. Neville commenced his career as a cadet journalist with the Canberra Times in the 1940s moving on to the position of Turf Editor for the Daily and Sunday Telegraph and Mirror. He later took up training and won the 1965 Sydney Cup with River Seine. He returned to Canberra in 1978 joining the Australian Public Service and training a few horses as a sideline. On retirement, Neville provided many trainers with helpful free advice and was a regular at the track and Canberra race meetings. In 1998, he wrote an autobiography “From the Press Box and Stable”.

RIHARNA THOMSON On the morning of 28 February 2017, Ms Riharna Thomson fell from a horse during track work on the Acton Track. As a result of the injuries she sustained in the fall, Riharna passed away at the Canberra Hospital on Friday, 3 March 2017. Riharna was a track work rider and stable foreman for the Capital Racing Stable, which operates under the training partnership of Keith Dryden and Scott Collings. Riharna was also a university student studying Political Science at the Australian National University. In honour of Riharna’s memory, the Club will name the Maiden Handicap on Black Opal Stakes day in 2018 and thereafter the Riharna Thomson Memorial Bracelet. The winning jockey will receive a memorial bracelet. The Club offers its sincere condolences to the family and friends of Riharna. We know that she is and will continue to be sadly missed by all who loved and knew her.

Tony Campbell Memorial Cup & Students Race Day 7 October 2016

13 2016/17 Canberra Racing Club Incorporated Annual Report 2015/16 Canberra Racing Club Incorporated Annual Report 14 CANBERRA RACING CLUB PREMIERSHIP AWARDS 2016/2017

TRAINER OF THE YEAR WINNER: NICK OLIVE OWNERS OF THE YEAR FELL SWOOP CONTRIBUTION TO ACT RACING WINNER: KEITH DRYDEN Nick Olive has recorded his seventh win in the Canberra trainer’s WINNERS: DR C G BEATON, MRS R A BEATON, R K LEES, R F GODDARD, Fell Swoop competed at the highest level through his seven starts for INDUSTRY AWARD premiership capping off a great season. Nick recorded 27 wins on the MRS B HEADON, MRS E N HICKEY, MRS A M HICKEY, P W HICKEY, the season recording one second and three third placings. His stand out The 2016/2017 Contribution to ACT Racing Industry Award is awarded Canberra tracks, 18 on the Course Proper at a strike rate of 24% and D J LAIRD, A G S OCHILTREE, MRS A OCHILTREE, L J OLIVE, N J OLIVE, run was his third placing in the Group 1 $2.6million T J Smith Stakes at to Mr Keith Dryden. Keith Dryden has been involved in the racing industry nine on the Acton Track at a strike rate of 25% for the season to win T J OLIVE, D G YATES, MRS K J YATES & ZAKRUGER RACING the Randwick Championships. He recorded a second placing in the $1 for 49 years including time as a trainer and racehorse owner. For the the premiership. Throughout the country, Nick recorded 43 winners The owner’s premiership was again very competitive this year with million Manikato Stakes at Moonee Valley, and ran third in the $1 million past 18 years, Keith has been a member of the Canberra Racing Club from 278 starters at a strike rate of 15%. In total, his horses won five groups of owners on three wins for the season. The winners were Group 1 Darley Classic at Flemington. His other placing for the season Committee. Keith’s first involvement in racing was in 1968 when $1,096,410 in prize money. Single Gaze was his stand out horse for the determined by count back based on second placings. The successful was third in the Group 2 Schillaci. In addition, Fell Swoop was selected he started helping out prominent Canberra trainer Jack Gordon on season winning the $200k Group 2 PJ O’Shea Stakes at Doomben, and syndicate’s win was off the back of the great season recorded by their as the Inglis nomination in the $10 million Everest to be run at Randwick weekends. When Jack passed away in 1984, Keith took out a trainer’s the $100k Listed Tails Stakes at the Gold Coast and $327,800 in prize horse Lord Denman, who recorded 3 Canberra wins and also took out on Saturday, 14 October 2017. licence starting off with one horse Kentucky Kingdom. Keith’s first winner money. Congratulations on another Canberra premiership win. the title of Horse of the Year. Congratulations to all the owners who was in 1985 with Monvari, which Keith owned in partnership with Geoff have significantly contributed to the Canberra Racing Club and the racing Season Starts 7 Bloom who in later years went on to become Chairman of the Canberra JOCKEY OF THE YEAR WINNER: BRENDAN WARD industry in general. Racing Club on two occasions. Wins 0 Brendan Ward has recorded another great season on the Canberra tracks Over the years, Keith built up his team producing over 1,250 winners winning his sixth Canberra Racing Club Jockeys premiership, the last two HORSE OF THE YEAR WINNER: LORD DENMAN Seconds 1 to become one of the most prominent trainers in the ACT/NSW. Keith being in succession. Brendan recorded 21 wins at Canberra, 15 wins on the Lightly raced three-year-old Lord Denman has won the Horse of the has won three Canberra Racing Club Trainers premierships and last Thirds 3 Course Proper and six wins on the Acton Track. Brendan recorded a total Year title winning three races at Canberra for the season, one win on the season in partnership with Scott Collings finished fourth in the NSW of 61 race wins on NSW/ACT tracks with an 11% strike rate from his 554 Course Proper and two wins on the Acton Track, as well as recording two Prize Money $573,000 Country Trainers Premiership with 42 wins. Some of Keith’s top horses race rides for the season. His mounts won a total of $1,178,698 in prize second placings. The title was won on the count back of second placings include Into The Night, Tumble On, Coolroom Candidate, De Lightning money. Since moving from Wodonga Victoria some years ago, Brendan from Rhomlo, who recorded three wins and one second placing. Group/Listed Races – 3 Group 1 placings Ridge, Shamrock Days, and 2007 Canberra Cup winner Testa Grande has established himself as one of the top jockeys on the TAB race meeting Lord Denman, a bay gelding by Denman, had eight of his nine career to name a few. Into The Night, Keith’s best horse was well performed circuit in the region. Another well-deserved premiership win. starts on the Canberra tracks this season. He excelled on the Acton Track SINGLE GAZE in high-quality Group and Listed Races. Into The Night won the 2003 recording two wins, one second, one third and one fourth placing on the Single Gaze returned from her fall in the ATC Oaks and injury in the Group 2 QTC Cup at Eagle Farm, ran 2nd in the 2003 Group 1 Salinger APPRENTICE OF THE YEAR WINNER: BROCK RYAN track. In total, Lord Denman won $59,650 on the Canberra tracks this autumn of 2016 to record a very successful season. From her nine at Flemington, 3rd in the 2003 Group 1 Stradbroke at Eagle Farm, and Outstanding young rider, Brock Ryan, has won the Canberra Racing season. The connections of Lord Denman have a lot to look forward to starts, she recorded two wins including the $200k Group 2 PJ O’Shea won consecutive Listed Hilton on The Parks in 2002 and 2003. Into Club’s Apprentice Jockey Premiership. Brock recorded 12 wins at with Lord Denman in the new season. Stakes at Doomben and the $100k Listed Tails Stakes at the Gold Coast. the Night was invited to compete in the Group 1 Hong Kong Sprint in Canberra, 10 wins on the Course Proper and two wins on the Acton She also ran second in the $300k Group 2 Brisbane Cup and third in the 2003 finishing unplaced behind the champion sprinter Silent Witness. Track. Brock recorded 50 wins on NSW/ACT tracks recording a strike FOCUS AWARD WINNER: SINGLE GAZE & FELL SWOOP $150k Group 3 Selwood Stakes at Rosehill. Keith has had some great riders ride for him including international great rate of 10% from his 522 race rides. Brock is apprenticed to Gwenda The Focus Award is awarded to a horse that, through its performance Lester Piggott, George Mulley and Darren Beadman, and had a long and Season Starts 9 Markwell at Kembla Grange, and from his 50 wins for the season, 30 and media coverage received throughout the season, attracts a focus successful association with Kevin Sweeney. wins were recorded at provincial tracks. Brock is set for a bright future in on Canberra racing. This year, Single Gaze and Fell Swoop have both Wins 2 Keith has also contributed to the industry by taking on apprentice jockeys the saddle. Congratulations on winning the Canberra Apprentice Jockey’s had outstanding seasons promoting the strength of Canberra racing throughout his training career including Jay Ford the regular rider of the Premiership. through their on-track performances. For the second year in succession, Seconds 2 Champion Takeover Target, and Karen Dodds who was one of the early the award has been awarded jointly to these two great Canberra trained female apprentices. As a member of the Committee for 18 years, Keith Thirds 1 horses. has been a party to all of the significant developments at the Club. Prize Money $327,800 He has been involved in the development of the construction of the Acton Track and subsequent surface replacement, reconstruction of the Course Group/Listed Races – One Group 2 win, one Listed win, Proper and the upgrading of the training facilities, facilities upgrades, two Group 2 seconds and one Group 3 third. prize money development and support with sponsorship. It is fitting that Keith Dryden who has devoted almost half a century of his life to the racing industry be awarded the Contribution to Racing Award. CONGRATULATIONS TO ALL SEASON AWARD WINNERS.

15 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 16 SPONSORS

CANBERRA RACING CLUB FINANCIAL STATEMENTS Alan Rummery Bookmaker

ALL ABOUT CANBERRA

17 2016/17 Canberra Racing Club Incorporated Annual Report 18 Canberra Racing Club Incorporated ABN: 21 423 896 409

Statement of Comprehensive Income For the Year Ended 30 June 2017

2017 2016 Note $ $ Revenue Revenue 2 10,448,313 10,115,294 Gain on sale of non-current assets 34,955 5,455

Total revenue 10,483,268 10,120,749 Expenses Bad and doubtful debts - 6,141 Depreciation 611,572 491,207 Employee leave expenses 41,689 79,794 Financial expenses 14,301 16,579 Insurance 144,124 158,466 Legal expenses 133,695 28,269 Other administration expenses 378,109 431,294 Racing expenditure 4 7,061,902 6,526,040 Track and ground expenditure 847,248 900,340 Wages and salaries 1,180,149 1,093,371

Total expenditure before depreciation of RDF funded assets 10,412,789 9,731,501 Surplus/(deficit) before costs related to RDF funded assets 70,479 389,248 Depreciation of RDF funded assets 14 (999,269) (999,269)

Net surplus/(deficit) before income tax expense (928,790) (610,021) Income tax expense 1(a) - -

Net surplus/(deficit) (928,790) (610,021) Total comprehensive income for the year (928,790) (610,021)

19 2015/16 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 20 Canberra Racing Club Incorporated Canberra Racing Club Incorporated ABN: 21 423 896 409 ABN: 21 423 896 409

Statement of Financial Position Statement of Changes in Equity As At 30 June 2017 For the Year Ended 30 June 2017

2017 2016 2017 Note $ $ Accumulated Surplus Total ASSETS $ $ CURRENT ASSETS Cash and cash equivalents 5 410,597 1,210,721 Balance at the beginning of the year 12,698,585 12,698,585 Other financial assets 6 2,009,025 2,010,192 Total comprehensive income (928,790) (928,790) Trade and other receivables 7 497,216 1,373,221 Balance at the end of the year 11,769,795 11,769,795 Inventories 77,046 62,737 Racing Australia 128,353 128,353 2016 TOTAL CURRENT ASSETS 3,122,237 4,785,224 Accumulated NON-CURRENT ASSETS Surplus Total Property, plant and equipment 8 10,232,203 9,339,486 $ $ Land rent prepaid 141,921 143,634 Balance at the beginning of the year 13,308,606 13,308,606 TOTAL NON-CURRENT ASSETS Total comprehensive income (610,021) (610,021) 10,374,124 9,483,120 TOTAL ASSETS Balance at the end of the year 12,698,585 12,698,585 13,496,361 14,268,344 LIABILITIES CURRENT LIABILITIES Trade and other payables 9 708,466 572,421 Provisions 10 383,415 359,767 TOTAL CURRENT LIABILITIES 1,091,881 932,188 NON-CURRENT LIABILITIES Stable lease in advance 623,073 629,920 Provisions 10 11,612 7,651 TOTAL NON-CURRENT LIABILITIES 634,685 637,571 TOTAL LIABILITIES 1,726,566 1,569,759 NET ASSETS 11,769,795 12,698,585

EQUITY Accumulated surplus 11,769,795 12,698,585 TOTAL EQUITY 11,769,795 12,698,585

21 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 22 Canberra Racing Club Incorporated Canberra Racing Club Incorporated ABN: 21 423 896 409 ABN: 21 423 896 409

Statement of Cash Flows Notes to the Financial Statements For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

1 Summary of Significant Accounting Policies 2017 2016 Note $ $ Basis of preparation CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and others 11,045,910 10,533,140 The financial statements are general purpose financial statements that have been prepared in accordance with Accounting Standards (Reduced Disclosure Requirements of the Australian Accounting Standards Board) and the Interest received 95,265 129,160 Associations Incorporation Act (1991). Prize money, trophies and subsidies (5,292,112) (4,699,195) Other payments (5,125,322) (5,845,930) The Club is an association incorporated in the Australian Capital Territory under the Associations Incorporation Act Net cash provided by/(used in) operating activities 723,741 117,175 (1991). The financial statements cover the Club as an individual entity. A number of new or revised Australian Accounting Standards are effective for the first time in the current financial year. These standards have had no material impact on the entity. CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of property, plant and equipment 455 5,455 The financial statements have been prepared on an accruals basis and are based on historical costs modified by the Payments for property, plant and equipment (1,524,320) (361,680) revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of Net cash provided by/(used in) investing activities (1,523,865) (356,225) accounting has been applied. Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year. The financial statements are presented in Australian dollars which is the Club's functional and presentation currency. The amounts presented in the financial statements have been rounded to the nearest dollar. CASH FLOWS FROM FINANCING ACTIVITIES: The following is a summary of the material accounting policies adopted by the Club in the preparation of the financial statements. Net increase/(decrease) in cash and cash equivalents held (800,124) (239,050) Cash and cash equivalents at beginning of year 1,210,721 1,449,771 Accounting Policies Cash and cash equivalents at end of financial year 5 410,597 1,210,721 (a) Income Tax

The Club is a tax exempt body under relevant provisions of the Income Tax Assessment Act, 1997.

(b) Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a specific identification basis and include direct costs and appropriate overheads, if any. Costs are assigned on the weighted average costs basis.

(c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Where a revaluation has been performed, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

The carrying amount of property, plant and equipment is reviewed at the end of the reporting period 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.

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.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable 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 costs (e.g. repairs and maintenance) are charged to the statement of comprehensive income during the financial period in which they are incurred.

23 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 24 Canberra Racing Club Incorporated Canberra Racing Club Incorporated ABN: 21 423 896 409 ABN: 21 423 896 409

Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

1 Summary of Significant Accounting Policies (continued) 1 Summary of Significant Accounting Policies (continued)

(c) Property, Plant and Equipment (continued) (f) Financial Instruments (continued)

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains Available-for-sale financial assets and losses are included in the profit or loss. When revalued assets are sold, amounts included in the Available-for-sale financial assets include any financial assets not included in the above categories. Available- revaluation relating to that asset are transferred to retained earnings. for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the investment valuation reserve. (d) Depreciation Financial liabilities The depreciable amount of all fixed assets including buildings and capitalised leased assets, is depreciated on Financial liabilities are recognised at amortised cost, comprising original debt less principal payments and a straight-line basis over their useful lives commencing from the time the asset is held ready for use. Leasehold amortisation. improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Fair Value 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, (e) Leases reference to similar instruments and option pricing models.

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the Club are classified as finance leases. Impairment At the end of the reporting period, an assessment is made whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are value of the leased property or the present value of the minimum lease payments, including any guaranteed recognised in the profit or loss. residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. (g) Impairment of Assets

Leased assets are depreciated over their estimated useful lives where it is likely that the Club will obtain ownership of the asset or otherwise over the term of the lease. At the end of the reporting period, the carrying values of tangible and intangible assets are reviewed 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 value less costs to sell and value in use, is Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is charged as expenses in the periods in which they are incurred. expensed to the profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the cash generating unit to which the asset belongs is estimated. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. (h) Cash and Cash Equivalents

(f) Financial Instruments Cash and cash equivalents include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the (i) Revenue related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below: Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or Revenue from the sale of goods is recognised upon the delivery of goods to customers. if so designated by management and within the requirements of AASB 139: Financial Instruments: Recognition and Measurement. Gains and losses arising from changes in the fair value of these assets are included in the Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the profit or loss in the period in which they arise. financial assets.

Loans and receivables Grant revenue is recognised in the statement of comprehensive income when the entity obtains control of the Loans and receivables are financial assets with fixed or determinable payments and are stated at amortised grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of cost using the effective interest rate method. the grant can be measured reliably.

Held-to-maturity investments If conditions are attached to the grant which must be satisfied before the entity is eligible to receive the These investments have fixed maturities, and it is the intention to hold these investments to maturity. Any held- contribution, the recognition of the grant as revenue is deferred until those conditions are satisfied. to-maturity investments held are stated at amortised cost using the effective interest rate method. When grant revenue is received whereby the entity incurs an obligation to deliver economic value back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered, otherwise the grant is recognised as income on receipt.

25 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 26 Canberra Racing Club Incorporated Canberra Racing Club Incorporated ABN: 21 423 896 409 ABN: 21 423 896 409

Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

1 Summary of Significant Accounting Policies (continued) 2 Revenue

2017 2016 (i) Revenue (continued) $ $ All revenue is stated net of the amount of goods and services tax (GST). ACT Government distribution 6,200,250 6,169,500 (j) Goods and Services Tax Admissions 122,236 142,264 Bookmaker's revenue 2,000 1,200 Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST Net catering income (refer note 3) 363,030 411,379 incurred is not recoverable from the Australian Taxation 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 the expense. Receivables and payables in Membership subscriptions 60,807 45,960 the statement of financial position are shown inclusive of the GST. Nomination and acceptance fees 160,595 137,322 Other income (refer note 3) 808,857 774,212 Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of Race fields revenue 2,302,825 2,019,488 investing and financing activities, which are disclosed as operating cash flows. Net sponsorship revenue 427,713 413,969

(k) Employee Benefits 10,448,313 10,115,294

Provision is made for the liability for employee benefits arising from services rendered by employees to the 3 Catering and Other Income reporting date. The benefits due to be settled within one year to employees for their entitlements have been measured at the amounts expected to be paid including on-costs and are disclosed as current liabilities. Included in the net catering income and net other income disclosed in note 2, are the following specific items of Employee benefits payable later than one year are measured at the present value of the estimated future cash revenue and expenditure: outflows to be made in respect of those benefits. 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. 2017 2016 $ $ (l) Provisions

Provisions are recognised when the Club has a legal or constructive obligation as a result of past events, for Bar sales 644,993 683,920 which it is probable that an outflow of economic benefits will result and that the outflow can be reliably Food sales 926,899 979,848 measured Interest received 94,098 129,818 Other income 770,549 702,539 (m) Comparative Figures Cost of goods sold - bar (237,997) (274,543) Cost of goods sold - food (186,431) (189,908) Comparative figures have been adjusted, where necessary to conform to changes in presentation for the current financial year. Depreciation - bar (10,678) (9,514) Depreciation - food (31,980) (26,869) Critical accounting estimates and judgments Other bar and food expenses (741,776) (751,555) Other expenses (55,790) (58,145) The Committee members evaluate estimates and judgments incorporated into the financial statements based on 1,171,887 1,185,591 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 Club.

The Committee members do not believe that there were any other key estimates or key judgments used in the development of the financial statements that give rise to a significant risk of material adjustment in the future.

27 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 28 Canberra Racing Club Incorporated Canberra Racing Club Incorporated ABN: 21 423 896 409 ABN: 21 423 896 409

Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

4 Racing Expenditure 8 Property, Plant and Equipment 2017 2016 2017 2016 $ $ $ $

Buildings/course improvements on leasehold land - at cost 25,158,643 23,111,659 Advertising and promotional expenditure 209,065 317,140 Less accumulated depreciation (15,559,621) (14,343,884) Jockeys' insurance 433,112 410,655 Other administrative expenses 266,556 260,618 9,599,022 8,767,775 Principal club expenses 52,578 65,372 Prize money, trophies and subsidies 5,292,112 4,699,195 Plant, fixtures and fittings - at cost 1,126,978 1,036,819 Race meeting expenses 808,479 773,060 Less accumulated depreciation (530,084) (510,888)

7,061,902 6,526,040 596,894 525,931

5 Cash and Cash Equivalents Motor vehicles - at cost 85,289 73,016 2017 2016 Less accumulated depreciation (49,002) (27,236) $ $ 36,287 45,780

Cash at bank and on hand 410,597 1,210,721 10,232,203 9,339,486

6 Other Financial Assets Movements in Carrying Amounts 2017 2016 $ $ Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Plant, fixtures Held-to-maturity investments 2,009,025 2,010,192 Building/course and fittings - improvements at cost Motor vehicles Total The held-to-maturity investments are made up of term deposits with interest rates of 2.70% and initial terms to maturity $ $ $ $ of 180 days. Balance at the beginning of year 8,767,775 525,931 45,780 9,339,486 7 Trade and Other Receivables Additions 2,211,763 322,181 12,272 2,546,216 2017 2016 Depreciation expense (1,380,516) (251,218) (21,765) (1,653,499) $ $ Balance at the end of the year 9,599,022 596,894 36,287 10,232,203

Trade debtors 448,387 323,101 Depreciation is calculated on a prime cost basis. The following depreciation rates were used: Less provision for doubtful debts (9,315) (12,428)

Prepayments: Class of Asset Depreciation Rates - Acton Track - 987,396 - Other 58,144 75,152 Buildings/course improvements on leasehold land 1% to 50% Plant, fixtures and fittings 5% to 33% 497,216 1,373,221 Motor vehicles 20% to 33%

29 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 30 Canberra Racing Club Incorporated Canberra Racing Club Incorporated ABN: 21 423 896 409 ABN: 21 423 896 409

Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2017 For the Year Ended 30 June 2017

9 Trade and Other Payables 12 Financial Risk Management 2017 2016 $ $ The entity's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable and leases.

Trade and other payables 457,235 502,281 The accounting policies and terms and conditions of each class of financial asset, financial liability and equity Income in advance 96,268 75,390 instrument at the reporting date are consistent with those regularly adopted by businesses in Australia. Other payables - Greyhound and Harness Racing 109,917 39,796 The entity is not exposed to any significant liquidity, credit or interest rate risk in relation to its financial instruments. 708,466 572,421

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the Other payables - Greyhound and Harness Racing relate to Race Field Legislation revenue collected by Canberra accounting policies to these financial statements, are as follows: Racing Club on behalf of Greyhound and Harness Racing. There is a corresponding amount included in the trade and 2017 2016 other receivables balance in Note 7 of these financial statements. $ $ 10 Provisions Financial Assets Cash and cash equivalents 5 410,597 1,210,721 2017 2016 Other financial assets 6 2,009,025 2,010,192 $ $ Loans and receivables 7 497,216 1,373,221 Current Total financial assets 2,916,838 4,594,134 Provision for annual leave 146,528 151,878 Provision for long service leave 236,887 207,889 Financial Liabilities

383,415 359,767 Financial liabilities at amortised cost: - Trade and other payables 9 612,198 497,031 Non-current Provision for long service leave 11,612 7,651 Total financial liabilities 612,198 497,031

11 Key Management Personnel Compensation Net fair values

Key management personnel is defined by AASB 124 “Related Party Disclosures” as those persons having authority Financial assets and financial liabilities are carried at their net fair value at the end of the reporting period. The carrying and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any values of financial assets and financial liabilities approximate their net values due to their short term maturity or market Committee members of the entity. interest rate. No financial assets or financial liabilities are traded on organised markets in standardised form.

The total of remuneration paid to the key management personnel of Canberra Racing Club Incorporated during the Finance Facilities year are as follows: 2017 2016 The Club has an overdraft facility of $250,000 (2016: $250,000). The unused portion of this facility at 30 June 2017 is $250,000 (2016: $250,000). The overdraft facility has been established to assist with cash flow requirements. The $ $ overdraft facility is secured over the Club’s non-current assets. The Club also has a credit card facility limit of $40,500 (2016: $40,000) which is cleared monthly. Total key management personnel compensation 358,458 359,442

Committee members do not receive a financial or loan benefit in their role as a Committee member which is an honorary position.

31 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 32 Canberra Racing Club Incorporated ABN: 21 423 896 409

Notes to the Financial Statements For the Year Ended 30 June 2017

13 Related Party Disclosures

Key management personnel transact with the Club from time to time on normal terms and conditions that are no more favourable than those available to others. The types of transactions involved include the purchase of food, beverages and membership. The transactions are settled at the time of the transaction, and no amounts are owing to the Club at year end in respect of these transactions. The total value of these transactions is low and is considered by the Club to be immaterial.

Other than the transactions disclosed above, and compensation of key management personnel, which is separately disclosed in these statements, there were no other related party transactions during the financial year.

14 RDF Funded Assets

Depreciation of RDF funded assets relates to the assets acquired from the funding received from the Racing Development Fund (RDF) for the development of the track and facilities before the RDF was abolished. The assets are depreciated at 5% per annum.

15 Contingent Liabilities and Contingent Assets

The Club has potential contingent liabilities at 30 June 2017 in relation to the following:

 An incident during the year when a track work rider was involved in an accident during the course of work resulting in severe injuries and subsequent death. The Club has since received notices of possible civil claims from solicitors acting for the deceased estate and for various members of the family of the deceased rider. The public liability insurance of the Club will respond to any such claim with the Committee acknowledging that the Club may face a potential excess expense on this insurance. Based on the facts and circumstances known to the Club at the time of this report there is no evidence to suggest that a claim may be successful. The Club is unable to reliably estimate the costs of this excess that may be borne by the Club in the event of a successful claim or claims against it.

 An instance where a casual worker has claimed workers compensation directly with the insurers of the Club. The Club was notified by the insurer that a claim had been lodged with them and they had partially paid the claim. Some further expenses are expected by the insurers to be claimed. The claim is covered by the Club’s workers compensation insurance and the exposure to the Club is expected to be nil.

16 Expenditure Commitments

There are no expenditure commitments as at the reporting date.

17 Events after the Reporting Period

These financial statements were authorised for issue by the Committee on the date of signing the attached Report of the Committee. The Committee have the power to amend the financial statements after they are issued.

There are no events after the reporting date which require amendment of, or further disclosure in, the financial statements.

18 Statutory Details

The Club is incorporated under the ACT Associations Incorporation Act, and operates within the Australian Capital Territory promoting the development of thoroughbred horse racing. The Club is domiciled in Australia and its principal place of business is located at Randwick Road, Lyneham, ACT.

33 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 34 ACTON TRACK SURFACE REPLACEMENT PROJECT 2016

35 2016/17 Canberra Racing Club Incorporated Annual Report 2016/17 Canberra Racing Club Incorporated Annual Report 36 Canberra Racing Club Incorporated

Randwick Road, Lyneham, Canberra, ACT PO Box 275 Mitchell, ACT 2911 T 02 6204 0000 F 02 6241 5697 E [email protected] W thoroughbredpark.com.au

37 2016/17 Canberra Racing Club Incorporated Annual Report