ANNUAL REPORT 2019 It matters not how strait the gate, ANNUAL REPORT 2019 | 1 OUR PURPOSE IS TO CREATE OPPORTUNITIES FOR OUR MEMBERS TO THRIVE. OUR VALUES 1 Fairness – we treat people fairly, respecting their views and valuing their contributions. 2 Diversity – we accept, embrace and promote diversity and inclusivity. 3 Leadership – we encourage our people to be creative, take initiative, show leadership and reach their potential. 4 Accountability – we take responsibility for our communications, decisions, actions and performance. 5 Integrity – we act with integrity in dealing with others. & THE WAY WE WORK 2 | ANNUAL REPORT 2019 Overview 2 Our Purpose & The Way We Work 4 Chairman’s Review 7 Member Club Statistics 8 MEC Statistics 10 From the CEO 12 Learning & Development Statistics 14 Board of Directors 16 MVSE Statistics 18 ClubKENO Holdings Board of Directors Financial Reports 19 Financial Reports Introduction 20 Directors’ Report 22 Accounting Officer’s Report 23 Statement of Profit or Loss and other Comprehensive Income 24 Statement of Changes in Equity 25 Statement of Financial Position 26 Statement of Cash Flows 27 Notes to the Financial Statement 58 Independent Auditor’s Report Supplements 61 State Councillors 62 Member Clubs 70 Affiliated Associations 71 ClubsNSW Community Partners 72 ClubsNSW Corporate Partners 73 ClubsNSW Industry Supporters CONTENTS ANNUAL REPORT 2019 | 3 CHAIRMAN’S REVIEW Dr George Peponis OAM Over the past year, the Board “ has refreshed its operation, enhanced its procedures and governance practices and renewed its charter to reflect changing expectations and “standards – as many clubs have done in recent time. 4 | ANNUAL REPORT 2019 I’d like to firstly take this opportunity to Board to fulfil its responsibilities to members of at ICC Sydney in October, 2018. acknowledge the Board for the faith they ClubsNSW on matters relating to the structure The agreement committed the Coalition showed in me at the June meeting by according and composition of boards, senior executive Government to a range of initiatives, including me the honour of serving as Chairman. selection and performance. the maintenance of gaming machine tax rates, It’s a great privilege to lead the peak Our member clubs should also notice an ensuring 12 straight years of tax certainty, industry body for the state’s registered clubs, increased and concerted effort for our Board following on from the 2011 and 2014 MoUs. and I look forward to representing your interests of Directors to be more heavily involved in It also committed to the expansion of to ensure success into the future. regional meetings, attend meetings across the ClubGRANTS Online – ensuring the Association At the same time, I’d like to pay tribute to state and to be available to discuss both day- can better tell the good stories of clubs – Peter Newell, who held this position for almost to-day and higher-level strategic issues with the introduction of third-party exclusions, 15 years and who served with the utmost club representatives. something which ClubsNSW has advocated for dedication and distinction during his long and It’s an exciting time ahead and I look a decade, and the rollout of Service NSW kiosks successful tenure. forward to working with the Board to ensure within clubs in remote communities. Peter formally resigned from the Board at the interests of clubs continue to be well The Annual Conference, staged at ICC the June meeting and he will be greatly missed represented. Sydney for the second year in a row, was well by all. He led the industry through some tough Away from the boardroom, it was another represented by delegates who travelled from fights, ensuring clubs have been able to operate busy year for ClubsNSW, with the Association’s across the state to participate in governance under a stable regulatory environment. I wish work ensuring stability and certainty for clubs. training, plenary sessions and stirring keynote him and his wife Judy well in retirement. The financial reserves of the Association addresses. At the same meeting, Sallianne Faulkner, were modestly enhanced with an operating It was also the prelude to the Clubs & the President of Ramsgate RSL Club and a surplus of $241,860, and the return to the Community Awards night, where again the great ClubsNSW Director since May 2018, was group from the ownership stake in Club work of clubs was on show. elected unopposed as Deputy Chair, becoming Employers Mutual has further strengthened A highlight was five-year-old Jaxson the first female in the history of the Association the overall position. The interests in the game Caldwell, who stole the show when he was up on to hold this position. of Keno continued to contribute important stage with emcee Ben Fordham. His mum, Kim The Board has carefully managed its funding toward key industry initiatives, with the McLeod, explained how their local club, Armidale succession planning this year by conducting a operating revenues of Keno marginally down on Servies, had supported them through Jaxon’s Board Performance Review, which has led to an the prior year. chronic illness – both financially and emotionally. overhaul of its skills and experience matrix. On the political front, the NSW Election, The 1000-strong audience, made up of As part of this process, the Board resolved held on March 23, returned the Coalition – club representatives, politicians, community to appoint Ron Coskerie, the Deputy President under the stewardship of Premier Gladys groups and other stakeholders, was again of St Mary’s Rugby League Club and a senior Berejiklian and Deputy Premier John Barilaro – reminded just how far and wide club support Westpac executive, to fill the casual vacancy for a third term of government. reaches, and the important role they play in created by Peter’s retirement. At the federal level, the Morrison Coalition communities across the state. Over the past year, the Board has refreshed Government pulled off a remarkable victory, in The club industry’s support of worthwhile its operation, enhanced its procedures and the face of opinion polling which suggested a causes again shone through over the past governance practices and renewed its charter Shorten Labor Government was certain. year, with a number of key initiatives receiving to reflect changing expectations and standards ClubsNSW worked hard to build and maintain overwhelming backing by clubs across the state. – as many clubs have done in recent time. good relations with both sides of politics, in a bid As drought continued to grip much of the state, A Remuneration and Nominations to ensure a stable regulatory environment. clubs rallied to help our farmers doing it tough. Committee was established to assist and advise Importantly, prior to the state election, From buying bales of hay and staging the Board on matters relating to compensation, ClubsNSW signed a Memorandum of benefit concerts, to collecting tinned goods and incentives and remuneration issues of the Understanding (MoU) with the NSW Coalition on donating money to a range of drought-related Directors, CEO and staff. It will also help the the opening morning of our Annual Conference charities and causes, clubs from right across ANNUAL REPORT 2019 | 5 The club industry’s support of worthwhile causes “ again shone through over the past year, with a number of key initiatives receiving overwhelming “ backing by clubs across the state. NSW came together to support those on the land. other community partners throughout the As part of that commitment, ClubsNSW year, including The Centre for Volunteering, and many member clubs helped to fund two Clontarf Foundation, Life Education, Little deployments of Team Rubicon Australia (TRA) to Wings, Max Potential, Nova Employment, drought-affected areas of Dubbo, in the Central the Regional Academies of Sport, Special West; and Scone, in the NSW Upper Hunter. Olympics Australia, Surf Life Saving NSW, TRA uses the skills and experiences Talent Development Project and Father Chris of Australian Defence Force veterans, and Riley’s Youth off the Streets. emergency service personnel, to rapidly deploy On the dining front, Club Toukley RSL Club, emergency response teams to disaster zones. led by Executive Chef Alex Patterson and Head Volunteers from TRA assisted farmers to Chef Kurt Sonneman, won Chef’s Table for the repair fences, de-silt dams, conduct general second year in a row. maintenance and provide emotional support to The prestigious competition, which farmers – many of whom are often too proud to recognises and rewards club chefs from across reach out and ask for help. the state, took place over two days at Ryde Special mention must go to Campsie RSL TAFE, with the winners announced at Doltone Club, who generously donated $150,000 to TRA House, Sydney, on July 30. for the purchase of three deployment vehicles, Revesby Workers’ Club’s Junior Sous which were used in Scone – and will assist TRA Chef Michael Hardie and Demi Chef Dean with future operations for years to come. Sinpraseuth took home Silver, while Country Not only did these deployments give Club Gledswood Hills Head Chef Luke Risby and purpose to our Defence Force veterans, it Sous Chef Guy Gillitteri won Bronze. provided meaningful assistance to those who Rounding out the list was Dee Why RSL needed it most. Club’s third-year apprentice, Zoe Johnson, who I’m proud to report that the collective was named Apprentice of the Year. drought support given by clubs across the state The competition, which received a record amounted to more than $1.5 million. number of entrants, continues to prove that The industry’s ongoing support of veterans club dining is rising to new levels – with highly- was also on show at the Invictus Games Sydney accomplished chefs producing some of the best 2018, in which ClubsNSW – under the banner of food on offer in NSW.