NEWCASTLE SHOWGROUND & EXHIBITION CENTRE TRUST
ANNUAL REPORT 2002/2003
Contents
Presentation Letter ...... 1 Chairman's Report ...... 2 Point 1. Constitution ...... 3 Point 2. Charter ...... 3 Point 3. Aims and Objectives ...... 3 Point 4. Management and Structure ...... 3 Point 5. Summary Review of Operations ...... 4-5 Point 6. Ethnic Affairs Action ...... 5 Point 7. Human Resources ...... 5 Point 8. Other Associations ...... 5 Plan of Newcastle Showground ...... 6 Management and Staff Structure as at 30/6/2003 ...... 7 Trustees' Profiles as at 30/6/2003 ...... 8-9 Listing of Sub-Committees ...... 10 Trustees' Statement...... 11 Independent Audit Report ...... 12-13 2002/2003 Audited Financial Statements ...... 14-26 Newcastle Showground& Exhibition Centre Trust Annual Report 2002/2003
t.l Newcastle Showground & Exhibition Centre Trust ~ifewcastl..fd Brown Road, Broadmeadow NSW 2292 II:.J!HiamoN PO Box 280, Waratah NSW 2298 CENTRE Phone(02) 49212100 Fax (02) 4921 2199
1olh May, 2004
The Hon. Sandra Nori, :MP Minister for Tourism and Sport and Recreation Level 34, Governor Macquarie Tower 1 Farrer Place SYDNEY NSW 2000
Dear Moister,
I have much pleasure .in presenting to you the Annual Report of the Newcastle Showground & Exhibition Centre Trust for the financial year ended 30th June 2003, as required tmder the Annual Reports (Statutory Bodies) Act of 1984. Also included are the Trust's financial statements which have been audited in accordance with the requirements of the Public Finance and Audit Act of 1983.
The Annual Report has been delayed due to the .finalisation of the Audit which occurred on 281h April, 2004. There had been some uncertainty concerning the valuation of the Trust's non current assets.
This is the Trust's eleventh Annual Report under the Annual Reports (Statutory Bodies) Act, 1984.
Yours sincerely,
howground & .Exhibition Centre Trust
i\uueh
~ ------~~~------Page 1 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003 CHAIRMANS REPORT rn accordance with the Annual Report Statutory Bodies Act 1984, I have pleasure in submitting the Newcastle Showground & Exhibition Centre Trust Annual Report for the year ending 30th June 2003.
The year in review represented the eleventh full year of operations for the Newcastle Entertainment Centre. The Trust, for the first time in three years, has derived an operating surplus before depreciation. The surplus of $552,286 has allowed for some much needed capital expenditure and debt repayment. The Trust has a significant annual debt repayment that requires servicing, together with an unfunded capital replacement and improvement programme. The Trust has identified the condition of the internal roadways as a major Occupational, Health and Safety issue. An investigation is being undertaken by a geotechnical engineer to determine the current condition and structure of the roads and to provide specifications for remedial action. This year the Trust hosted 38 events in the Entertainment Centre, 18 in the Exhibition Centre and 2 in the Showground. The Showground is also used for car parking at events that are held in the Entertainment Centre. In addition, there were occasions when some of the smaller pavilions were used for local and community purposes. The Trust has several permanent tenants on the Showground including the Woodturners of the Hunter, a dog obedience trainer, an exhibition hire company, three boxing gyms, art print warehouse and aquarium society. There are stables within the Showground that contain horses stabled on a permanent basis. Due to safety and economic reasons, the tenants were given notice to vacate effective 28111 September 2001 but some still remain. The Trust has commenced proceedings in the Supreme Court ofNew South Wales to obtain vacant possession. It is intended that the stables will be retained for use during the annual Newcastle Regional Show. The principal tenant of the Showground is the Newcastle Agricultural, Horticultural & Industrial Association, which produces the annual Newcastle Regional Show. The original dedication of the site is for the use and general purposes of the Association and accordingly, the Trust receives no rental for use of the entire site to host the Newcastle Regional Show or for the building that serves as the Association's office on a permanent basis. The Trust fully funds the maintenance and capital requirements of the site and receives a contribution from the Association for the incremental costs incurred in hosting the Show. Due to limited funds, there has been no major capital improvements on the site but regular maintenance has occurred. There are many items requiring attention and some may pose a risk management issue for the Trust in the near future. The current dedication restricts the Trust from pursuing alternative or additional uses for the site, some of which could improve revenue.
A major issue facing the Trust is the number of noise complaints received from surrounding residents. The Trust commenced a noise monitoring programme in April 2003 to determine the regularity, frequency and level of noise. Based on the results of this monitoring, building modifications may be necessary.
It is anticipated that the next financial year will derive a small operating surplus before depreciation of approximately $1 00,000 which is insufficient to meet debt commitments and carry out capital works over the long term.
An overview of the Trust's activities, structure and finances are detailed in the following pages.
The Trust contributes both economically and culturally to the regional area and notes the community satisfaction in which its activities are received.
Page 2 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
Constitution
The Newcastle Showground is a Crown Reserve, administered by a Trust under the auspices of the Crown Lands Act 1989, and the Newcastle Agricultural, Horticultural and Industrial Association Act 1905 (as amended).
The Newcastle Showground and Exhibition Centre Trust was constituted under the Newcastle Agricultural, Horticultural and Industrial Association Act of 1905 and charged with the care, control and management of the area on behalf of the New South Wales Government.
The Trustees were appointed by the Minister under Section 93 of the Crown Lands Act 1989 and are appointed for a maximum period of five years.
The Trust currently consists of seven members. The term of these members expires on 22nd July 2004.
2. Charter
The Trust will manage the Crown Reserve known as the Newcastle Showground to ensure that it provides to the community, facilities which can be run for the purposes of its formation, that is, for activities for public enjoyment, including the annual Newcastle Regional Show.
3. Aims and Objectives
The Trust will achieve its charter by the following corporate objectives:
(i) Provide entertainment, exhibition and recreational facilities of a national and international standard for the Hunter Region.
(ii) Encourage the maximum use of the facilities.
(i ii) Manage the complex in a commercial manner.
(iv) Co-ordinate and manage works for the improvement, development and maintenance of the Crown Reserve.
4. Management and Structure As at 30/6/2003 Chairman: Mr R J Edwards, JP Trustees: Mrs S Macleod, BSSc, MSSc, JP Mr D R Saddington, JP Mr R Warry, FACE, JP Mrs C Croll, B Ed, Dip CCD, Cert IV Trainer/A ssessor Mr J G Fitzgerald, BSc, MilE, FIE Aust, CP Eng Mr B P Chard
The full Trust meets formally once a month.
Page 3 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
5. Summary Review of Operations
The Newcastle Entertainment Centre services the region which includes the Central Coast, west to Moree and Armidale and north to Coffs Harbour. This is an important consideration because the potential audience reach is up to one million patrons. On occasions, shows touring Australia have been known to sell more tickets at the Newcastle Entertainment Centre than in Brisbane.
The 2002/2003 year represented the eleventh full year of operations of the Entertainment Centre.
Entertainment Centre Exhibition Centre Showground Number of Events 38 18 2 Performance Days 75 82 7 Event Days (includ ing bump in and bump out) 114 86 16
Attendance levels by event profile: Popular Concerts 28,634 Rock Concerts 34,050 Sporting Events 4,482 Family Shows 105,137 Newcastle Regional Show (estimate) 50,000 Exhibitions 5 1,3 16 Dinners and Fu nctions 3, 157 Total Attendance: 276,776
The events we hosted during this year were as follows:
International National Local Art Garfunkel Long Way to the Top HSC Marking l 00 Yrs Walt Disney Magic National Worldskills Computer Sales Bob the Builder Shout Home Show Opals World Basketbal l Chall enge John Farnham Woodworking & Craft Expo Lady Salsa The Wiggles Star Struck I 0111 Anni versary Ball Commonwealth Fencing Champships Long Way to the Top II Frontier Furniture Sale Joe Cocker Ford Racing Stars & Cars CUB "Summer in the Hunter" Evolution Cold Chisel St Francis Xavier Formal David Cassidy Hunter/Cen tral Coast Tech'gy Expo Chri s fsaak Harvey Norman Sale Bryan Adams Newcastle Regional Show 2003 Bob Dylan Great Escapes Expo Riverdance Gouger Rug Sale Gala of the Royal Horses Star Struck 2003 Ben Harper Westpac Rescue Helicopter Ball Oli via Newton John S i lverchair Hunter Harvest Page 4 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
This year the number of events and total attendance has increased significantly. The increase is due to an improvement in the value of the Australian dollar which has led to an increase in the number of concert artists touring Australia. The total attendance was also boosted by the John Farnham farewell tour, an improved Newcastle Regional Show and the return ofDisney On Ice. The Trust also hosted the National Worldskills event in October 2002. This event utilised the Entertainment Centre, Exhibition Centre and a large part ofthe Showground decked out with temporary marques. [t is anticipated that the level of events and attendance will be maintained in the next financial year.
Since the loss in 1999 of the Newcastle Falcons from the National Basketball League, the Entertainment Centre has been with out an anchor tenant. This situation will improve in the next financial year as the Trust has secured the right to host the region's new team, the Hunter Pirates, in the National Basketball League. Whilst the increase in profitability from hosting the team is not large, there are the benefits of increased profile, employment for casual staff and more oppotiunities for suppliers.
Netball NSW is also reviewing the structure of its two Sydney teams entered in the National Commonwealth Bank Cup and there is a strong chance that the Hunter Region will have a team based at the Entertainment Centre for the 2004 Season.
The Trust has assisted many local charities and fundraising activities throughout the year by making tickets available for prizes at selected events. In addition, the Entertainment Centre was made available at no charge for use by Channel Ten for the local Special Children's Christmas Party which is held for disabled and di sadvantaged Children. The Trust also makes its facilities available at reduced rates on many other occasions to assist in fundraising activities.
6. Ethnic Affairs Action
The Trust's core business is the provision of entertainment and recreation facilities for the entire community ofNewcastle, the Hunter Region and surrounding regions. However, the Trust operates under the basis of provision of equal opportunities in the areas of venue hiring, provision of customer service and employment opportunities. The Trust encourages the patronisation of the facilities and employment of the ethnic community within the Entettainment Centre and Showground.
7. Human Resources
The Trust does not directly employ any staff. However, Ogden IFC (Newcastle) Pty Limited, as agents ofthe Trust, employ in excess of 180 staffofwhich 12 are employed in a full time capacity.
8. Other Associations
The Trust continued to employ the services of Ogden IFC (Newcastle) Pty Limited as its agent to manage the grounds on its behalf, according to the terms and conditions of a commercial management agreement. The agreement is commercially based, and complies with the Trust's responsibilities and obligations as dictated by the Crown Lands Act of 1989. A Human Resources Organisation Chart is included on page 7 ofthis Report. Page 5 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
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Page 6 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003 NEWCASTLE ENTERTAINMENT CENTRE STAFF STRUCTURE
···········-·-- ····························-··-··- ! ! i -- --·----L·--·------1 ~- -i)-;~·d~~des David Evans , ··········-·· Operations Catering & -o.l~;;;-Financial ] Manager j i-··· Controller ~ I eM~;~~~~~~~~: ··· r;ii_y_v~~~-~~;;-1 Front ofl-Iouse I George ·-·---·-·---.J--··----·---l Casual 1- l~~-~-~fl Spyropoulos Cleaning ...... ··-···=·~~~.~.~~-~~~--- ·· · Technical Staff Supervisor I I -··--~~~~~~ ·---J I ---·-··--·-·-·-·--·---·---·-1 I l_ r~~ Mark Baldwin ~:~ Venue Attendant !.· -···· -· -· ~~~~~--··--·--} I Rebecca Quain 1... , _,,,,,,,, Receptionist ····-·-- ·-·--T - ·---·-·---·
···-··-·-···-···-Casua·-L----l ·---·] ~-~~~ [~Technical _ Supervisor Casual
,,.., ,, __ ,., ___ l~H------·M Beverage Staff r----- ;:~;~;i---·--· L~::~:~ ~-~.~~~~-f~-·
Page 7 Newcastle Showground & Exhibition Centre Trust Annual Repo11 2002/2003
Robert J Edwards- JP
New South Wales State Returning Officer (Charlestown Electorate) Returning Officer for Wallsend RSL & Community Club Retired School Teacher & 20 years as School Principal Certificate of Librarianship Qualified Accountant with Auditing and Company Secretary experience Auditor for Primary & Secondary Schools Regional Sports Association Member ofNewcastle A H & I Association Committee Former Chairman, Greens & Grounds Committee Merewether Golf Club Ltd Former Director & Vice President, Merewether Golf Club Ltd Former Treasurer, Wallsend District Cricket Club Inc Life Member, Hunter Region Primary Schools Sports Association Life Member, Newcastle International Sports Centre Life Member, Merewether Golf Club Ltd Justice of the Peace
Susan Macleod - BSSc, MSSc, JP
Director, NextGen.Net Commissioner, Catholic Education Commission ofNSW Founding Member, Maitland Diocese Children With Special Needs Committee Representative Member Friends ofNewcastle Museum Former Alderman, Newcastle City Council Former Councilor, Shortland County Council Former Trustee, Hunter Valley Conservation Trust Former Member, Board of Advice, Lingard Hospital Former School Teacher State Education Department/Catholic Education Department Former Community Member, Hunter Region State Schools Disadvantaged Schools Committee Former Liaison Officer, Hunter Valley Research Foundation Official Visitor, Cessnock Corrective Centre
Ray B Warry- FACE, JP
Retired School Teacher with 28 years as School Principal Life Member, RSPCA Life Member, WLPSA Foundation Member, FOG Member ofNewcastle A H & I Association Committee Former Rotarian Former Member of the Royal Zoological Society ofNew South Wales Former Member of Board, School of Education, NCAE & HIHE Fellow of the Australian College of Education Judiciary Member, Newcastle & Hunter Rugby Union Inc Member of Community Aid Panel (Newcastle Police)
Page 8 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
Dudley R Saddington - JP
Insurance Broker President, Newcastle A H & I Association Past President Insurance Institute ofNSW, Newcastle Branch· Justice of the Peace
Catherine Croll,- BEd, Dip CCD, Cert IV Trainer/Assessor
Cultural Researcher, Top End, Northern Territory Cultural Planner, Southern Councils, Illawarra Trustee, Newcastle Historic Reserve Trust Principal Trainer, Community Cultural Development NSW Former Executive Director, Arts Hunter & Newcastle Community Arts Centre Former Member, Newcastle City Council Arts & Cultural Development Panel Former Regional Cultural Development Officer, Riverina (19 NSW LGAs) Former Member, Hunter Business, Regional Development Committee Fellow, Australian Rural Leadership Foundation Former Vice President, NSW Community Arts Association Former Board Member, Arts Council ofNSW Founding Member, Museum ofContemporary Art, Sydney Life Member, Art Gallery ofNSW
John G Fitzgerald - B Sc (Tech), Industrial Engineering, MilE FIE Aust, CP Eng
Board Member, Hunter Area Health Service Board Member, Newcastle Port Corporation Board Member, The University ofNewcastle Research Associates Limited (TUNRA) Council Member, Hunter Institute ofTechnology Former Chief Executive and Director A Goninan & Co Limited
Ben P Chard-
Regional Co-ordinator - Hunter, NSW Premier's Department Member of International Sports Centre Trust Member of BHP Development Trust Chairman, Newcastle Licencing Accord Former Regional Director, Department of State & Regional Development & General Manager, Hunter Economic Development Corporation Former Alderman, Dubbo City Council
Page 9 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
Liaison and Audit Committee
Established as a liaison mechanism between the Trust and its agent, Ogden IFC (Newcastle) Pty Ltd to facilitate the best possible management of the Showgrounds and Entertainment Centre, and to review the financial performance and position of the Trust on a monthly basis:
Mr J Fitzgerald (Chairman) Trust M r R Edwards Trust Mr R Warry Trust Mr C Blanch Ogden TFC (Newcastle) Pty Ltd Mr D Lynch Ogden IFC (Newcastle) Pty Ltd
Building and Grounds Sub-Committee
The Sub-Committee consists of representatives from the Newcastle Showground & Exhibition Centre Trust, Ogden lFC (Newcastle) Pty Ltd and the Newcastle AH & I Association [nc, whose role is to implement and oversee a maintenance and improvements plan for the showground.
Susan Macleod (Chairperson) Trust Robert Edwards Trust Robert Saddington Trust Catherine Croll Trust Chris Blanch Ogden IFC (Newcastle) Pty Ltd Judith Dumbrell Newcastle AH & T Association Inc George Keegan Newcastle AH & T Association Inc
Ogden IFC (Newcastle) Pty Ltd
The Directors of Ogden lFC (Newcastle) Pty Ltd are:
Harvey Lister Rod Pilbeam Ken Edwards
Attendance at Full Trust Meetings
Fifteen ( 15) full Trust meetings were held during the year ended 30th June 2003 . Attendance by Trustees at meetings were: No. Meetings Attended Mr R J Edwards 14 Mrs S Macleod II Mr DR Saddington 14 Mr R Warry II Mrs C Croll 13 Mr J G Fitzgerald 8 Mr B P Chard 9 Page 10 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
NEWCASTLE SHOWGROUN.D AND EXHIBITION CENTRE TRUST
STATEMENf BY TRUSTEES
Pursuant to Section 4lc(l)(B) of the Public Finance and Audit Act 1983, and in accordance with a resolution of the Trustees of the Newcastle Showground and Exhibition Centre Trust Incorporated, we declare that in our opinion :
1. The accompanying financial statements exhibit a true and fair view of the Newcastle Showground and Exhibition Centre Trust Incorporated as at 30th June, 2003 and transactions for the year then ended.
2. The financial statements have been prepared jn accordance with the Public Finance and Audit Regulation, 2000 and Treasurer's Directions. We are not aware at this time of any circumstances which would render any particulars included in the financial statements to be misleading or inaccurate.
,;_.r./~ -/_/' -:Jy;d Dated: /v · C-"7/~ ~ 1
Page II Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
GPO SOX 12 SYDNEY NSW 2001
INDEPENDENT AUDIT REPORT
NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST
To Members of the New South Wales Parliament
Audit Opinion
In my opinion, the financial report of the Newcastle Showground and Exhibition Centre Trust: (a) presents fairly the Trust's financial position as at 30 June 2003 and its f inancial performance and cash flows for the year ended on that date, in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia, and (b) complies with section 41 B of the Public Finance and Audit Act 1983 (the Act).
My opinion should be read in conjunction with the rest of this report.
The Trustee's Role
The financial report is the responsibility of the Trustees of the Newcastle Showground and Exhibition Centre Trust. It consists of the statement of financial position, the statement of financial performance, the statement of cash flows and the accompanying notes.
The Auditor's Role and the Audit Scope
As required by the Act, I carried out an independent audit to enable me to express an opinion on the financial report. My audit provides reasonable assurance to Members of the New South Wales Parliament that the financial report is free of material misstatement.
My audit accorded with Australian Auditing and Assurance Standards and statutory requirements, and 1: evaluated the accounting policies and significant accounting estimates used by the Trustees in preparing the financial report, and examined a sample of the evidence that supports the amounts and other disclosures in the financial report.
An audit does not guarantee that every amount and disclosure in the financial report is error free. The terms 'reasonable assurance' and 'material' recognise that an audit does not examine all evidence and transactions. However, the audit procedures used should identi fy errors or omissions significant enough to adversely affect decisions made by users of the financial report or indicate that the Trustees had not fulfilled their reporting obligations.
My opinion does not provide assurance: about the future viability of the Trust, that it has carried out its activities effectively, efficiently and economically, or about the effectiveness of its internal controls.
Page 12 Newcastle Showground & Exhibition Centre Trust Annual Report 2002/2003
Audit Independence
The Audit Office complies with all applicable independence requirements of Austra lian professional ethical pronouncements. The Act further promotes independence by: providing that only Parliament, and not the executive government, can remove an Auditor-General, and mandating the Auditor-General as auditor of public sector agencies but precluding the provision of non-audit services, thus ensuring the Auditor-General and the Audit Office are not compromised in their role by the possibility of losing clients or income.
SYDNEY 28 April 2004
"
Page 13 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST
STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 30TH JUNE, 2003
Note 2003 2002 $ $
Rovonuo from ordinary activities $3,330,642 $2,3881)88
Expenses from ordinary activities
Raw mate rials and oonsumables used ($441,513) ($277,990) Employee benefi ts expense ($1,0 79,311) ($936,869)
Oepredajon e~ense ($1, 177,708) ($164,689)
Borrowng cost expense ($208,541) ($262,769) Manage mont fees ($373,671) ($301,490) Repairs and Mainto nancs ($204,612) ($159,806) Insurance ($207,837) ($1 14,828) Doubtful debt expense ($23,789) ($90,857) Other expenses from ordinary activities ($239,282) ($236,258)
Oporoting Surplus/(Doficit) ($625,422) ($157,468)
Not lncre::ase In asset revaluat ion roserve 1 (a), 16 $30,678,348 $0 lncreaso In retained oamings resulting from change in accounting st<:~ndards 1 (a), 16 $9,704,381 $0
Total adjustnonts recognised dlroctty in equity $40 382,729 so
Total changes In equity other than those res~ting from transactions wit h owners as owners, $39,757,307 ($157,468)
The above statement of frnandtJI performance should ba read in conjuncfon with tho accompan)ing nolo•
Page 14 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST
STATEMENT OF FINANCIAL POSITION AS AT 30TH JUNE, 2003
Note 2003 2002 $ $ Current Assets Cash Assets 5 $1,969,843 $2,242,175 Receivables 6 $106,397 $164,479 Inventories 7 $55,062 $36,756 Other $31,248 $45,786
Total Current Assets $2,182,570 $2,491 ,196
Non·CtJmtnt Assets Propof'lj, plan I and equlprrent $42,639,422 $3,1 04,208
Total Non-Current Assets $42,639,422 $3,1 04,208
Total Assets $44,821,992 $5,595,404
Current Uabilltlos Payables 10 $1,907,938 $2,352,132 Interest bearing llabiliies 11 $126,100 $126,100 Non Interest bearing liabililes 12 $50,000 $50,000 Pro\'isions 13 $42,116 $32,956
Total Currant Liabilifas $2,126,1 54 $2,561,188
Non Current Liabilities Interest bearing Uabllilas 14 $3,703,929 $3,830,029 Pro~As ions 15 $88,018 $57 603
Total Non-Current Liabilities $3,791,947 $3,887,632
Total Liabilities $5,918,101 56,448,820
Net Assots 538,903,891 ($853,416)
Equity Asset Revaluation Reserve 16 $31,792,348 51 ,114,000 Accumulated Funds 16 $7,111,543 ($1 ,967 ,416)
Total Equity $38,903,891 ($853,416)
The above statement of finandal po!ition should be mad In conjundion v.ith the aa:ompanyjng notes
Page 15 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST
STATEME NT OF CASH FLOWS
FOR THE YEAR ENDED 30TH JUNE, 2003
Note 2003 2002 $ $
Cilsh Flows from Operating Ac tivities Inflows Inflows IOutflows) (Outflows)
Receip~ from customers $2,800,621 $3,030,082 Interest received $50,843 $26,948 Interest subsidies received • Oepl of L.a.W.C $140,941 $193,544 Operaing Grant received $10,000 $560,41 1 Interest and other costs of finance paid ($208,540) ($262,770) Payments to suppliers and employees ($2,591266) ($1,967 ,307)
Net cash provided by operatin g activities 25 $202,599 $1 ,580,908
Ca.sh Flows from lnvasth'lg Activities
Payment tor properl)', plant and equipment ($330,739) ($33,233) Proceeds from sale o f property, plant and equipment $1,908 $33 180
Not cash used In Investing activities ($328,831) ($53)
Cas h Flows from Financing Activities
Proceeds from borroWngs so $55,500 Repayment o f borrowings ($126,100) ($152,996)
Net cash provided by (used) In financing activities ($1 26,100) ($97,496)
Not lncmu o (Docrouo) In Cash Hold ($252,332) $1,483,359
Cash at beginning of the fin3ndal year $2,242,175 $758,816
C <~ s h <~ot End of the Fin ancial Year• $1,989,843 $2,242,17$
· Cash tncludes $1,.221,116 Y.hidl has been oolleded by the Trust as an agencyof Ticketek in respect of advance ticket sales. These funds are restncted in the fad that thoy are not available br use in the operathg activities of the Trust unUI the event or perbrmanoo to v.tllch the advanm ticket sales relate has ocrurred.
The above statement of cash flows should be read in conjuncl on vith the accompan)ing noau
Page 16 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST
NOTES TO AND FORMING PART OF THE ACCOUNTS
FOR THE YEAR ENDED 30TH JUNE, 2003
1. SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES
The Newcastle Shov.ground and Exhibition Centre is a Crown Reserve administered by a Trust under tie auspices of the CroiMl Lands Ad, 1989 (commenced 1st May, 1990) and the Newcastle Agriwltural, Horticultural and lndusnal Association Act 1905 (as amended).
The Trust has appoinl!d Ogden IFC (Newcastle) Ply Ltd to manage and operate all Newcastle ShoWJround 9te faci lities on its behalf.
Effective from the year ended 30th June, 1991 , the Trust is induded h Schedule 2 of the Public Fin ance and Audit Ac~ 1983. As required by Section 41 (1 ) of the Ad, the Trust has kept proper accounts and records of its operations.
The Tru st operaes with the objective of placing the Newcastle Sho~round and Exhibition Centre and surrounding prenises under the care. control and managementof the Trust for use as a Shov.ground and for recreation, entertainment and exhb ition purposes.
The Trusrs Financial Statements are a general purpose financial report which have been prepared in accordance with AusQ-alian Aa::ounlng Standards, other mandatory professional repon:ng requirerrents (Urgent Issues Group Consensus Views), the pro>.Asions of the Public Finance and Audit Act 1983, the Public Finance and Audit Regulation 2000 and the Treasurer's directions.
The statements have also been prepared undertho historical cost conveni on using accrual accounting, except for certain assets which as noted, are at valuation.
(a) Changes in Accounting Policy. Revaluation of Physical Non·Curront Assets
The Trust has adopBd the revised Accounting Standard AASB 1041 "Revaluation of Non Current Assets" and tle NSW Treasury Policy & Guidelines relating thereto, which mandalt the use of Fair Value for all physical non current assets.
Fair value is defined as "the amount for which an asset could be exchanged, or a liability settled, between kno (b ) Income Ta x The Trust is exempt of income tax under Section 50·25of the Income Tax Assessment Act. 1997 (as amended). (c) Inventories Stod< on hand is stated at the lower of cost and net realisable value (d) Receivalles and Revenue Recognitio n The Trust ads as an agent for Ticketek and its customers 1n respect of advance ticket sales with ticket commission revenue and other revenues in relation to the use of the facility, recognised at the time of the event occurring. The Trust's managerront agent manages the Ticketek agenq arrangementwith the revenue brought to account on a net basis. CollectibiHty of debi:lrs is reviewed on an ongoing basis. Debts which are kno\\11 to be uncollectible are written off. A pro\lislon for doubtl.JI debts is raised where some doubt as to collection e>dsts. Page 17 NEWCASTLE SHOWGROUND A ND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH J UNE, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) (e) Oep reclatlon of Property, Plant & Equipment Deproclalon is calculated on a straight line basis so as to write off the net cost or revalued amount of each Item of property, plant and equiprrent (exduding land) over Its expected useful life to the entity. Estimates of remaining useful lives are made on a regular baSs for all assets, with annual reassessments for major items. The e>cpected useful tivos are as follows : Buildings (and Integral Equiprrent) 20 to 40 years (0111er) Plant & Equipment 3 to 10 years (f) Trade & Other Creditors These amounts represent liabilities for goods and services provided to the Trust prior ID the end of the financial year and \\hich are unpaid. These amounts are unsecured and are usualty paid within 30 days of recognition. (g) Employee Benefds (i) Wages. salaries and annualleave. Llabililles for wage~ salaries and annualleaw are recognised, and are measured at the aiTOunt unpaid, induding applicableon·costs, at the reporfng date at current pay rates in respect of employees' service up to that dato. (ii) Long service leave A liability for long service leave is recognised, and is measured as the nominal value of expected futuro pa~ents to be made in respect of services provided by employees up to tho reporting date, inducting applicable on·rosts. Long service leaw is accrued In respect of all employees with more than five years service .....;th tho Trust. (111 ) Suporannuaton liabilities for suporannuaton are recognised, and are measured at the amount unpaid at the reporting date at current employer contribufon rates in respect of employees' service up to that date. (h) Doubtful Debts The doubti.Jt debts have been re\iewed at balance date and appropria\1 pro'oision has been rmde for debts which are considered doubful. Debts whtch are known to be uncolleclble are written oH. (I) Property, Plont & Equipment Land, was valued by an •ndependentvaluer as at 30 June 2001 and adjusment to tho vatua was elfected in the 2000-01 lnancial statements as detailed in Note 9. As at 30111 June 1999, the reooverable amount of propertJ, plant and equipment was determined using e)q)&Cled net cash flows discounted to their present value. In complying with AAS10· Accoun~ng for Revaluajon of Non-Current Assets, the Trust s building and irrprovemunts have been written dOYwn as at 30 June 1999. This resulted in a write back of $7,468,941 kl the as.set revaluation reserve, leaving a balancotheroin of $714,000 at 30 Juno 1999. Apart from this exception, the cost method of accounting is used for all aQ1uisitions of assets. Cost is doterrrined as the fair value of tho assets given up at the date of acquisition plus costs incidental to tho acquisition. During tle year a revised Treasury policy and guidellnespaper"Valuation of Physical Non-wrrent assets at Fair Value" was issued, to apply Australian Accounting StandardAASB 1041"Revatuat1on of Non-o.ment Assets" to tho Now Soutl wales public Sedor, for the years ending on or after 30 June 2003. Under lhe reiAsed Treasury policy and guidelines, t11e Trust Is considered to be a not-for prolt entity where t\e future econonlc benefits comprising those assets are not primarily dependenton the assets• ability to gonO Land and Buildings were valued by an i"ldependentvaluer as at 30 June 2003 andadjusment to the values were effected in the financial statements as det ailed in Note 9. The adjustnents were made at the beginning olt11e ftnancial year as required by AASB 1041. The valuer has advised t11ere is no material movement in the valuation between fle beginning ofthe year and the valuaion daB. Page 18 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.} (I} Property, Plant & Equipment (coni} The aown land in tho Trust's contrails held under a recognised Crown Leasehold arrangement This crO'M'l land has been induded as an asset as the Trust maintains control over the asset {j} RevalUAtion of Non·curront As sots Land and buildings are revalued Wth sufficient regularity to ensure carrying values do not materially differ from fair values at ba lance dam. Revaluation Increments are credited directly to the asset revaluaton reserve except that, to the extent that an increment reverses a revaluatOn decrement in rasped of that dass of asset pre'W'iously recognise d as an e)t)ense. the inaement is recognised immediately as revenue. (k} Capital and Maintenance Expenditure The cost of non·aJITont assets capitalised indudes all costs direeUy associated v-ith the purchase and I or construction of non-aJrrent assets. Assets \\lith acquisition costs less than $1,000 are charged as expenses in the year of acquisition. Maintenanoo. repair costs and IT'inor repairs are charged as expenses as ina.med. (I} Cash For lhe purposes of the Statement of Cash Flows, cash includes deposits at call 'Wtlieh are readily convertible to eo1sh on hand and which are used in the cash management fundion on a day-to-day basis. (m) Borrowings Loans are c.-uried at their principal amounts which represent the present value of future cashf!ows associated with sorvidng the debt Interest is accrued over the period it booomos duo ond is recorded as part of creditors. 2. Operating Segment Information The Trusts operations predoninanW entail the provision of entertainrmnt, exhibition, sporting and reaeational fadlities of nadonal and intemafonal standard for the Hunter Region. Page 19 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2003 2003 2002 $ s 3. Rcvonuo Revenue from opora&ng adlvities Venue and Ground Hra 51,066,897 $429,754 Sale of goods $1,213,126 $695,158 Ticketing Income $565,901 $263,728 Other $263,134 $218,547 $3,129.058 $1,607,185 Revenue from outside the operating activities Interest $50,843 $26,948 Government Grants $150 941 $753,955 $201 784 $780,903 Revenue from ordinary adlvities $3,330.842 $2,388,088 4. Profit (Loss) from ordinary activities Profit (Loss) from ordinary activities includes the following specifte expenses Exponsos Oepreciaion Buildings 9 $1,104,472 $41,484 Plant & Equipnllnt 9 $70,400 $109,4 17 Mot or Vehicles $2,838 $13,788 Total Depredation $1 177 708 $164,689 Bad Debts $23,789 $90,857 Borrov.ing Costs Interest and finance charges 23 $208,541 $262,769 Total Borrowing costs Provisions Employee benefits $39,575 ($1,684) Total prov1sions Thera IS a SIQOificant vanance in depreaationcharges for the year ended30 Juno 2003duo D lho revaluation. Refer Notes 1{a) and 9 5. Current Assets -Cash Asset s Cash at the end of tho Financial year as shO'Ml in the statement of cash nows Is recondled 10 the rela'ed items in the statement of finandal position as follows: Cashon Hand $40,381 $50,250 Cash at Bank $728,348 $609 442 Sub Total- Cash to fund operatbns $788,727 $659,692 Cash at Bank- Advance Ticket S ales 10 $1 221116 $1,582 483 $1,989,843 $2,242,175 Page 20 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2003 2003 2002 $ $ 6. Current Assets • Rocctvablos Trade Debtors $111,365 $257,389 Less Provision for Ooubtlll Debts $4,968 $92,910 $106,397 $164,479 There is no significant conccntation of credit risk associated with Trade Debtors. 7. Current Assets -Inventories Opening twen.:>ry $38,756 $51,986 Plus Purdlases for Resale S457,839 $264,760 Less Closing lnvent>ry $55 082 $38,756 Cost Of Goods Sold $441,513 $277,990 8. Curront Assets ·Other Prepald Insurance S19,162 $18,250 O ther prepa~ents $12,086 $27,536 $31,248 $45,786 9. Non Curront Assets. Property, Plant and Equipment Land At independent valuation 1st July 2002 $4,800,000 so At in depen den tvalua ~ on 3011 June 2001 so $1,150 000 $4,800,000 $1 ,150,000 Showground Facility At lndependontvaluaion 1st July 2002 $6,985,500 so At Trustees valuation 30tl June1999 so $1 19,757 Less: Accumulatad Oepreciafon S316,065 $8,982 $6,669,435 $110,775 Entertainment Centre Facility At indepondentvalualon 1st July 2002 $31,5001)00 so At Trustees valuaion 30h June 1999 so $1 ,539,617 At Cost $209,920 so Less: Accumulatad Doprecialon $788.407 $115,471 $30,921,513 $1 ,424,146 Floodlighting At Trustees va1uaion 30tl June 1999 $0 $7,513 Less: Accumula~:td Doprocia,on so $2,254 $0 $5,259 Ground Improvements At Trustees valuation 3011 June 1999 so $22,626 At Cost so $13,655 Less: Accumulnred Oepreciadon so $2.604 $0 $33,677 Page 21 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH J UNE, 2003 2003 2002 s s 9. Non. Current Assets . Property, Plant and Equipment Integral Plant and Equipment· Ent ertainment Centre At Trustees valuation 30tl June 1999 so $210,487 Less: AccumutaUtd Deprecla~on so $31573 so $178,914 Other Plant and Equipment Other Plant and EquipiTDnt at cost S643,152 $559,194 Less: Accumulated Oepreciaion $432.912 $372.160 $210,240 $187,034 Offico Equipment Office equiprrent at cost $348,664 $314,788 Loss: Accumula!Od Deproclaion $31 0.903 $303 693 $37,761 $11,095 Motor V ehicles (Owned) Motor Vehides (Owned) at cost $1 4,176 $16,176 Less: Accumulated Oepredafon S13,703 $12,868 $473 $3,308 Total Property, Plant omd Equipment At Cost $1 ,215,912 S903,813 At Valu ati:>n 1 July 2002 S43,265,500 so At Valuati:>n 30 June 2001 so $1,150,000 At Valuati:>n 30 June 1999 so S1,900,000 Less Accumulated Deprecia-on S1 ,861,990 S649,605 S42,639,422 SJ, 104,208 Valuation of Property, Plant and Equipment Tho independentvaluaoon of Land and Facili~es at 30 Juno 2003was determined by an indopcndontvaluor M-lan Humphries. Registered Valuer 1'-b. 3429 br Marl< Skelton Valuers Pty Ltd The independentva l ua~on of property, plant and equipment at tho 30h of June, 2003 is based on fair market value. The Trustees valua•on o f Land at30 Juno 2001 v.es determned by an indepandentvaluor Mr Robort G Eldridge, Registered Valuer No . 1288 br the State Valuation Office. The Trustees valua,on of propof't>J, plant and equipment at the 30th of June, 1999is based on tla IOtNer of recoverable amount and fair market value. The recoverable arrount was based on future cashftows in support of tho carrying value. Reclassilcoation of Non-current Asset aasses The 2003 wluations for tho Shov.ground Fadity and the Entertainment Centre Facility also induda and!lary and integrated plant and equipment Previ ou~y the ShoWJround assets wore separately identified as buildings, f1oodlight ng and ground i'nprovements, and those of the Entertainment Contro wero buildings and in tegral plant and e qulpiTBnt. Reconciliations Recondtiations of tho e1rrying amounts of each class of property, plant and equlprrent at the beginning and end of the current financial year are set out below. Canying amount Transfers between Revaluation Reve~al of RA Carrying amount ot 1n12002 Asset classes Increment Writedowns Additions Disposals Ooproclatlon ot 3016/ 2003 Freehold Land $1,150,000 $3,650,000 so S4,600,000 Shov.ground Facility $110,775 S36,936 $6,006,404 S829,385 S316,065 S6,669,435 Entertainment Centre Facilit) $1,424,146 $178,914 $21,021 ,944 $8,874,996 S209,920 $ 766,407 $30,921,513 Floodlighting S5,259 (S5,259) so so Ground Improvements S33,677 ($33,877) so so lnt Plant & Equiprront $178,914 ($178,914) so so Office Equiprrent S11,095 S33,676 $7 ,210 537,761 Other Plant & Equip. S187,034 S86,943 S547 S63,190 S210,240 Motor Vehides S3,308 so $2,835 $473 53,104206 so 530,678,348 S9,704,361 S330,739 $547 S1 , 177,707 $42,639,422 Page 22 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2003 2003 2002 $ $ 10. Current Llabllltlos • Payablos Creditors. Trade $424,016 $557,504 Creditors· Adva nce Ticket Sales $1,221,1 16 $1 ,582,483 Income in Advance $174,183 $157,157 Accrued expanses $88,821 $54,986 $1,907,938 $2,352,132 11. Current Llabilltlos ·Interest Bearing Liabiliti es CBA Commercial Bill $125,000 $1 25,000 DLWC Loan $1 ,100 $1,100 $126,100 $126,100 12.Curront Llitbllitlos • Non Interest Soaring Liabilities Ogden Loan $50,000 $50,000 13. Current Liabilities . Provisions Provision for Annual Loaw $42,116 $32,956 $42,116 $32,956 14. Non Current Liabilities · Interest Bearing Liabilities NSW Treasury Corporaion $3,201.729 $ 3,201 ,729 CBA Commercial Bill $500,000 $625,000 OLWC Loan $2,200 $ 3,300 $3,703,929 $3,830,029 The Commonwoalh Bank of Australia Commercial Bill for S625,000is secured byway of : A First Registered Mortgage by Newcastle Shoy,ground and Exhibition Contra Trust over propartj situated at Brown Rd BroadmeadowNSW. A First Registered Equitable Mortgage by Newcasije Shov.ground and Exhiblion Contra Trust over the whole of its asset(s) and underta~ng (s) including unca lled capital. On 1st Oocombor 2003 the NSWTreasury Corporation loan duo for repayment on tlat date was ro-negoiatod to a new fixed intorost loan maturing on 1st May 2006. The tl'neframe for repayment of all loans and borrowings outstanding at year end Is : within 1 year 1 year to 5 years 5 +years NSW Tre asury Corporaion so $3,201,729 $0 CBA Commercial Bill 5125,000 $500,000 so Ogden Loon $50,000 $0 $0 OLWC Loon $1,100 $2,200 so Note11 & 12 (11,12) ___.::..:.:..:::..:;::::.....:..:.;:;:...... _....::;:;.;:=:..::..---....:::;. $176,100 (14) $3,703,929 so 15. Non Current Liabilities .. Provisions Pro~si cn tor Long SeNce Leave $88,01 8 $57,603 Page 23 NEWCASTLE SHOWGROUNO AND EXHIBITION CENTRE TRUST NOTES T O AND FORMING PART O F THE ACCOUNTS FOR THE YEAR ENDED 3 0TH JUNE, 2 003 2003 2002 $ $ 16. Equity .t ) Reserves Asset revaluation reserve $3 1 ,792~48 $1,114.000 Movomonts:· Asset revaluatlon reserve Balance 1 July 2002 S1 ,114.000 S1.114.000 R'valuaeon inaements on revaluation of : Land $3,650.000 so Entertainment Cenlre Facilities S21 ,021,944 so Sho~round Facilities $6,006,404 so Balance 30 June 2003 $31,792~48 $1,114,000 b) Retained Earnings I (Accumulated Losses} Accumulated losses at the beginning ofthe financial year (S1 .967,416) (S1 ,809,948) Opera ting Surpluo'(Defieit) (S625,422) ($157.468) lnaease In retained earnings resulting from change in aa:oundng standards S9 , 704~81 so Retained profits at the end of the financial year $7,1 11,5 43 ($1,967,4 16) c) Natura and purpose ot reserve s As sot ravaluatlon rosorvo The asset revaluation reserve is used to record increments and deaements on tho rowtuaUon of non a.mont assets, as desaibod In accounting policy note 1 {j). 17. Fin:mciallnstrumants (o ) Interest Rate Risk The fnaooal assets and liabilities subject to interest rate risk are : Bank Account The Trusrs bank accounts eam 1nterest at the mar1te t vanable ram. Bank Loan As at year end. $625,000(2002:$750.000) ..,s outstanding on the loan account. The ament vanable •nerest rate •s 7.58% (2002:7.9 %) per annum NSW Treasury Corpora ion Loan As at year end S3~01 , 729 ( 2002 : 53~01. 729)was outstanding on the NSW Treasury Corporation Loan. Tho ament variable interest rate is 5.00% (2002:439%). Dopartmont of Land and V\.btar Conservation Loan As at year end $3~00 (2002S4,400)was outstanding on the Deparment of Land and INater Conscrvaion Loan. The amont variablo lnlorost rate is 5.50% (2002: 5.50%). Ogden LOan As at year end S50.000 (2002$50,000)was outstanding on the Ogden Loan. This loan has been provided on an inErest free basis. The welghtod average interest rate for borrowings is 5.35% (2002:4.99%) All other finandal assets and financial liabilities are not subject to Interest rate risk. (b) Credit Risk The a edit risk on finandal assets of the Trust whidl has been recognised in the statement of flf'landal posidon , is the carrying arrount net of any provision ror doubful debts. (c) Net F•lr V•lue of Financial Assets and Uabilities The Trusrs financial assets and liabilities included in the statement of finanaal pos•don are carried at amounts thai appro>Gmate net fair value other than tle NSWTreasuryCorporatlonloan v.hich has a fair value of S3.297 243 (2002$3,285,737), and is recorded at a cost of $3.201.729 (2002$3.201,729) Page 24 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2003 2003 2002 $ $ 18. Auditor's Remuneration Amounts received by the Audit O ffice of New Sault! 'Nales for audi~ng the accounts. $21,000 $19,800 19. Contingent Liabilities Tho Trustees are not aware of any significant or material contingent liability in existence at balance date or ~o\lhich had ermrged subsequent to balance date 'M1ich would materially impact on tie financial position of the Trust as sho'Ml in the finandal statements. 20. Employee Bonefits Employee benefit liabilitie s Provision for employee bene its Current (Note 13) $42,116 $32,956 Non OJrrenl (Note 15) $88,018 $57,603 Aggregate employee benefit liability 5130,134 $90,559 Number Employee numbers Average nurrt:Jer of employees during the financial year 31 25 21. Related Parties Trustees The names of persons who Y~~Bre Trustees of the Trust at any time during the year are as follows: R Edwards, S Madeod, R Warry, K Croll. R S addington. J Fitzgerald and B Chard Romuneration In come received, or due and receivable, by Trustees from the Trust Nil Nil 22. Economic Dependency The Trust derives the majority of its income, being entertainment centre and ground hiring income and income from concessions from the procurerrent and success of events boolu:!d. The level of income of the Trust is dependenton lhe continued procurement of successful ewnts from the natbnal and intemationa! markets. The Trust also rece ives a full interest subsidy from the State Government to meet debt servicing charges associated Wth a government guaran'eed Treasury Corporation loan. Continuance of the interest subsidy in future years Is essential in order to maintain financial viability. Page 25 NEWCASTLE SHOWGROUND AND EXHIBITION CENTRE TRUST NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 30TH JUNE, 2003 2003 2002 $ $ 2J. Borrowing Costs Bank charges $6,507 S7.431 Interest. CBFC so S1.069 Interest · DLWC S240 S303 Interest · Insurance Prerrium Funding $8,379 $0 Interest- Commercial Bills S52.474 $60,422 Interest- NSWTreasury Corporalon S140.941 S193 544 $208,541 $262,769 24. Professional Fees and Consultancy Services Amounts paid to \Norkplace & Sa#ety Training i:Jr Occupa~onal Health & Salety Training so $6,440 Amounts paid to Suters Architeds for Heritage Assessment Report so S2 ,1 05 Amounts paid to Thompson Piron br Risk Management Services so $625 Amounts paid to Pedorsons Engineers for Structural EngineerServices so $450 Amounts paid to Warren & Mark Skelton for Valualons of Buildings for Insurance purposos so $1,364 Amounts paid to Ausgroup Consulting for Industrial Relations Ser.oices S1 ,350 $0 Amounts paid to V1pac Engineers and Sdontists for Noise Monitoring Sotvtees S2.275 so Total Amount of Consultancy SeMces $3,625 $1 0,984 25. Reconciliation of Not Cash provided by Operating Activities to Opor.ating Resu{t Operal ng Surpluo' (Deficit) (S625,422) ($157,468) Nlln cash flows in opera•no <1d1vities : Bad debt expense $23,789 S90.857 Deprecia,on S1.177.708 S164.689 Loss on saJe of property, plant and equiprrnnt S2 $7,558 Profit on sale of propeny, plant and equipmmt (S1.364) (S9,966) Changes in operathg assets and liabilities : Oecrease/(inaease) in receivables S34,293 ($11 2,007) Oecrease/(inaease) in Inventories ($16,326) S13,231 {lncrease)/deaease in olher assets S14,538 $49,975 !ncroase/(deaease) in sundry creditors (S444,194) $1,535,722 lncrease/(deaoase) in employee entldements $39.575 ($1,683) Net cash provided by o per~tlng activities $202,599 $1,580,908 Financing Arr.~ngement!l Unresbicted aa:ess was available at balanat dale to the folowing lines of credtt· Bank overdraft $95,000 $95,000 The bank overdraft facility may be drawn at any time and may be terminated by th e bank without notice. End of audited financial statements Page 26