2017/18 Financial Statements

CORPORATE GOVERNANCE STATEMENT DIRECTORS’ REPORT The Board recognises the importance of good corporate governance and establishing accountability of the Board. The directors of submit herewith the annual financial report for the financial year ended 30 June 2018. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows: The Board is satisfied with Cricket Tasmania’s corporate governance framework. These policies and practices will ensure the continued effective management and operation of Cricket Tasmania. The names and particulars of the directors of the company during or since the end of the financial year are: Cricket Tasmania’s corporate governance policies centre on the Board, the Board Committees and the principles that govern their interaction with, and oversight of, management. A.I. Gaggin, LLB, Chairman, elected as a Director in 2003; D.G. Davey, FAICD, elected as a Director in September 2016; Partner of Murdoch Clarke, Barristers and Solicitors; over 25 over 30 years’ experience in Financial Services Industry, now Cricket Tasmania’s corporate governance framework, policies and practices will remain under regular review as expectations years’ experience as a litigation lawyer; served on Executive retired; Royal Tasmanian Botanical Gardens Board Member and requirements develop to ensure Cricket Tasmania complies with better practices. Committee, Finance Audit & Remuneration Committee, and since 2015; currently serving on Premier League Committee, RISK MANAGEMENT STATEMENT Venue Operations Committee; Chair of the Cricket Committee Risk & Compliance Committee, Membership Committee, and and Marketing Committee. Venue Operations Committee. Cricket Tasmania operates under a general risk management framework that encompasses the required activities of risk determination, risk recognition, risk assessment, risk management approaches and the ongoing review of risk mitigating A.J. Green, MAICD, FCA, Deputy Chairman to June 2018, B.J. Jefferies, BEc, DipFP, DipBus, appointed as a Director outcomes across Cricket elected as a Director in 2004; Chair of Finance, Audit & in February 2009, and elected in September 2010; Practice Remuneration Committee, served on Executive Committee. Administration for Back in Motion Health Group; 24 years’ Tasmania’s operations. These processes are consolidated into an Enterprise Risk Management framework, which includes: Resigned as Director in June 2018. Chairman of KPMG experience in financial services, marketing and management; ƒƒ A Board approved risk assessment process based on assessing the likelihood and consequence of identified risks occurring; Tasmania, former Director of Common Ground Tasmania, a served on the Risk & Compliance Committee and Cricket chartered accountant with over 35 years’ experience. Committee; Chair of the Premier League Committee. ƒƒ A senior management assessment of the Company’s risk profile using the Board approved process; C.P. Mitchell, CA, B.Comm, appointed as a Director in 2004, R.E.G Kemp, BA, GradCertMktg, MAICD; appointed as ƒƒ The generation of a Risk Register flowing from this assessment, including control effectiveness ratings of mitigation a Director in March 2015, Investment Adviser at Evans approaches; and appointed as Deputy Chairman in July 2018; President of Cricket North West for ten seasons (2004 -2014). Partner of & Partners; over 20 years’ experience in investment ƒƒ A Board approved Risk Management Policy Statement setting out the responsibilities and ongoing reporting structures Crowe Horwath; a chartered accountant with over 30 years’ management, marketing consulting and heavy industry and pursuant to these risk assessment outcomes. experience in professional public practice. Served on Finance, manufacturing. Member of the Finance Audit & Remuneration This framework has recently been reviewed in detail. The continued refinement and ongoing review of these features occurs Audit & Remuneration Committee, chairman of the Game Committee. under the oversight of the Risk and Compliance Committee. Particular focuses in this regard include: Development Committee, and co-chair of the Indigenous S. Samec, appointed as a Director in September 2014, Cricket Advisory Committee. Life Member of Cricket North ƒƒ The financial risk management practices undertaken pursuant to the financial risk management policy; Cricket North West President, Company Director, Notary West. Public; formerly: Commercial Lawyer and Partner of Crisp, ƒƒ The operation and reporting structures of Cricket Tasmania’s Risk and Compliance Committee in relation to the risk J.M. Bailey, MBA, MAICD, appointed as a Director in February Hudson & Mann Barristers & Solicitors over 35 years, Director associated with the legislative and regulatory requirements of Cricket Tasmania operations; 2015; and elected in September 2015; Director of Royal of Tasmanian Chamber of Commerce & Industry, President ƒƒ The change management, standard operating environment, and security policy processes and practices that, along with other Tasmanian Botanical Gardens; a Certified Practicing Marketer of Burnie Chamber of Commerce & Industry, Alderman technology related risk management structures, reflect the risk management approach to Cricket Tasmania’s technology with over 25 years’ experience in strategic marketing, and Mayor of Burnie City Council, Director of Cradle Coast infrastructure; communications, stakeholder engagement and event Authority; served on the Game Development Committee. management across private and public sector; past President Resigned as Director in December 2017. ƒƒ An extensive annually determined insurance program constructed to cover insurable risks to the extent that the coverage is of Marketing Institute (Tas); Chair of Membership effective and efficient; and B.S. Targett, B.Bus, GAICD, appointed as a Director in Committee, served on Marketing & Commercial Committee, September 2016; CEO of The Old Woolstore Apartment ƒƒ Ongoing assessments of the level of achievement of this risk management approach are undertaken by the Risk and Game & Market Development Committee and Risk & Hotel and Hadley's Orient Hotel, former Senior Advisor to Compliance Committee. Compliance Committee. the Premier and Minister for Tourism, Hospitality, Events and For the current reporting period, the Chief Executive and the General Manager – Corporate Services have made statements D.C. Boon, appointed as a Director in December 2013, and Sport & Recreation, start-up CEO of Destination Southern in accordance with Recommendations 4.1 and 7.2 of the Corporate Governance ASX Practices and Best Practice elected in 2014; General Manager – Marketing & Media at Tasmania, CT Director 2008-2014 and former Tasmanian First Recommendations. Cricket Tasmania 1999 – 2004; General Manager – Cricket Class player. Chair of the CT Risk & Compliance Committee, Operations at Cricket Tasmania 2004 – 2011; ICC International served on the CT Marketing Committee and CT Cricket Match Referee 2011 – current; former Tasmanian First Class Committee. Cricketer; former Australian International Cricketer; Durham E.G Johannes, appointed Director in July 2018. Director of County Cricket Club 1997 – 1999; MBE 1993; Member of the Gregj23 Pty Ltd, working in the areas of governance, strategy St Michael’s Collegiate Foundation 2005 – 2009; Patron for and leadership. Fifteen years’ experience in the Tasmanian Australian Cricket Society Tasmanian Branch; Ambassador State Service, including more than three years as Secretary for the Australian Childhood Foundation; served on Cricket of the Department of Premier and Cabinet. Resigned as a Committee. Director in August 2018. P.T. Clark, NTCA President and appointed Cricket Tasmania The above named directors held office during and since the Director 2012. Represented Tasmania Colts, end of the financial year. and First Class Umpire with over 50 years continuous service to cricket. Northern Tasmania’s Umpire Adviser for 15 years. Served on Executive Committee and Risk & Compliance Committee.

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DIRECTORS’ MEETINGS Disclosure of information regarding likely developments in the operations of Cricket Tasmania in future financial years and the expected results of those operations is disclosed in this report where appropriate. The following tables set out the number of directors’ meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member). OFFICERS AND AUDITORS INDEMNIFICATION During the financial year, Cricket Tasmania paid a premium in respect of a contract insuring the directors of Cricket Tasmania FINANCE, AUDIT MARKETING & and all executive officers of the Association against a liability incurred as such a director, or executive officer to the extent BOARD OF EXECUTIVE VENUE OPERATIONS & REMUNERATION COMMERCIAL permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the DIRECTORS COMMITTEE COMMITTEE COMMITTEE COMMITTEE amount of the premium. DIRECTORS HELD ATTENDED HELD ATTENDED HELD ATTENDED HELD ATTENDED HELD ATTENDED Cricket Tasmania has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor A.I. Gaggin 12 10 7 5 1 1 1 1 of the Association against a liability incurred as such an officer or auditor. J.M. Bailey 12 12 2 2 REVIEW OF OPERATIONS D.C. Boon 12 7 Cricket Tasmania is the administrative body for the game in Tasmania. This includes game development, high performance and P.T. Clark 12 8 the general promotion and growth of Cricket to all Tasmanians. In addition to administering the game, Cricket Tasmania holds a D.G. Davey 12 9 1 1 long term lease with the Clarence City Council for Blundstone Arena. Blundstone Arena plays host to international and domestic cricket and AFL Football as well as a host of other sporting and community organisations and events. P.J. Green 12 11 7 7 Cricket Tasmania’s vision is to be Tasmania’s favourite sport, a sport for all Tasmanians. This vision is underpinned by 6 strategic B.S. Targett 12 11 2 2 objectives identified in Cricket Tasmania’s 2017-2022 Strategic Plan: B.J. Jefferies 12 11 ƒƒ Venue – maximise revenue return E. Kemp 12 12 7 6 1 1 ƒƒ Governance – stable, quality Board and Management C.P. Mitchell 12 12 7 6 ƒƒ Finance – solid financial footing, full commercial value realised S. Samec 2 2 ƒƒ Performance – best practice program, winning teams, destination Association GAME AND MARKET RISK & COMPLIANCE PREMIER LEAGUE MEMBERSHIP ƒƒ Female Friendly – improved facilities, increased participation DEVELOPMENT CRICKET COMMITTEE COMMITTEE COMMITTEE COMMITTEE COMMITTEE ƒƒ Tasmania’s Team – the leading sport in the state, engaged fans statewide DIRECTORS HELD ATTENDED HELD ATTENDED HELD ATTENDED HELD ATTENDED HELD ATTENDED The result for the year was a deficit of $1,645,367 compared with a deficit of $906,680 in 2017. The reduced financial result is A.I. Gaggin 2 2 largely a result of significant restructuring costs, ongoing investment in high performance including the WNCL and BBL/WBBL, J.M. Bailey 2 2 1 1 3 3 costs incurred in travelling to finals in both BBL and the Sheffield Shield, and lower than expected returns from BBL. These investments in Cricket Tasmania’s programs have delivered finals appearances in both the Sheffield Shield and BBL, with such D.C. Boon 2 2 on field success to translate into increased financial performance in coming years, particularly through increased sponsorship P.T. Clark 1 1 and match returns. D.G.Davey 1 1 8 6 3 3 The 2019 financial year will again see the return of International One Day Cricket to Tasmania, with Australia playing South P.J. Green Africa in November 2018. The Hurricanes mens and womens teams will each play 2 fixtures in Launceston, with the Hurricanes womens also playing 2 fixtures in Burnie as part of the Big Bash regional expansion and a focus on the Hurricanes as Tasmania’s B.S. Targett 2 2 1 1 2 2 team. Blundstone Arena will also continue to host AFL Matches and other major events for Cricket Tasmania’s members. Cricket B.J. Jefferies 3 3 8 5 2 2 Tasmania will continue to invest in the game in Tasmania, with a focus on participation as the Association strives to meet its E. Kemp vision as Tasmania’s favourite sport. C.P. Mitchell 1 1 DIRECTORS' REMUNERATION S. Samec 1 1 1 1 Total amount paid to directors for the year ended 30 June 2018 was Nil (2017: Nil). DIVIDENDS COMPANY SECRETARY No dividends have been nor are permitted to be paid. N.W.R. Cummins, BA, appointed as Cricket Tasmania Chief Executive in April 2017 after previously being employed as General MEMBER CONTRIBUTION Manager at the New South Wales Cricket Association; 22 years in sports management including senior marketing roles at Fosters Group, Ford Australia and Betfair; served on Marketing & Commercial Committee, and Finance, Audit If the Company is wound up, each full member, other than an Honorary Life Member, is required to contribute a maximum of & Remuneration Committee. $2.10 towards meeting outstanding obligations of the Company. The total amount full members would be required to contribute PRINCIPAL ACTIVITIES is $2,953. AUDITORS INDEPENDENCE DECLARATION The principal activities of Cricket Tasmania in the course of the year were the administration of State cricket, promoting and conducting the game of cricket generally and the coaching of junior cricketers. The auditor’s independence declaration is included in page 5 of the financial report. CHANGES IN STATE OF AFFAIRS Signed in accordance with a resolution of the Board, made pursuant to s.298 (2) of the Corporations Act 2001. On behalf of the directors During the financial year there was no significant change in the state of affairs of Cricket Tasmania other than that referred to in the financial statements or notes thereto. OBJECTIVES OF THE COMPANY The short and long term objectives of the Company centre around the administration, development and promotion the game of Cricket in Tasmania. These objectives are reviewed and measured on a regular basis, and are the framework of Cricket A I GAGGIN Tasmania’s strategic plan. Director SUBSEQUENT EVENTS 20 August 2018 There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial year, that has significantly affected, or may significantly affect, the operations of the company, the results of those operations, or the state of affairs of the company in future financial years. FUTURE DEVELOPMENTS

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DIRECTORS' DECLARATION The directors declare that: a) in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; b) in the directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance of the company. Signed for and on behalf of the Board of Management and in accordance with a resolution of the Board, made pursuant to s.295 (5) of the Corporations Act 2001. On behalf of the Directors

A I GAGGIN Director HOBART 20 August 2018

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INCOME STATEMENT STATEMENT OF FINANCIAL POSITION FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018 AS AT 30 JUNE 2018

2018 2017 2018 2017 NOTE $ $ NOTE $ $ Current Assets Revenue 2 24,367,354 22,443,081 Cash and Cash Equivalents 19(a) 13,633 27,469 Marketing Expenses (812,049) (591,608) Trade and Other Receivables 5 868,350 612,234 Match Expenses (1,991,784) (1,897,310) Prepayments 6 154,320 150,319 Catering Expenses (1,562,008) (1,938,519) Inventories 7 136,023 123,030 State Team Expenses (10,090,663) (8,807,986) Investments 8 2,004,884 1,866,514 Club Cricket Expenses (940,819) (887,293) Total Current Assets 3,177,210 2,779,566 Game Development Expenses (2,734,466) (1,959,535) Oval Operations (1,986,461) (1,818,859) Non-Current Assets Administration Expenses (5,836,766) (5,435,994) Property, Plant & Equipment 14 47,561,829 48,996,404 Finance Costs (57,705) (12,657) Total Non-Current Assets 47,561,829 48,996,404 Profit / (Loss) for the Year (1,645,367) (906,680) Total Assets 50,739,039 51,775,970 Attributable to: Members of the Company (1,645,367) (906,680) Current Liabilities STATEMENT OF COMPREHENSIVE INCOME Trade and Other Payables 9 1,978,745 1,280,010 FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018 Provisions 11(a) 506,437 491,688 Deferred Revenue 10(a) 1,234,794 1,232,408 2018 2017 Borrowings 12(a) 1,832,487 1,917,837 NOTE $ $ Total Current Liabilities 5,552,463 4,921,943 Profit/ (Loss) for the Year (1,645,367) (906,680) Facilities Grants - - Non-Current Liabilities Provisions 11(b) 99,586 119,658 Total Comprehensive Income for the Year (1,645,367) (906,680) Deferred Revenue 10(b) 32,425,282 33,661,480 Borrowings 12(b) 4,865,620 3,631,434 Total Comprehensive Income Attributable to: Members of the Company (1,645,367) (906,680) Total Non-Current Liabilities 37,390,488 37,412,572

Total Liabilities 42,942,951 42,334,515

Net Assets 7,796,088 9,441,455

Equity Reserves 15 501,407 501,407 Retained Earnings 16 7,294,681 8,940,048 Total Equity 7,796,088 9,441,455

Notes to the financial statements are included on pages 109 to 119 Notes to the financial statements are included on pages 109 to 119

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STATEMENT OF CHANGES IN EQUITY 1. SUMMARY OF ACCOUNTING POLICIES AS AT 30 JUNE 2018 STATEMENT OF COMPLIANCE a series of independent determined benchmarks, which JUNIOR were outside the approved threshold at 30 June 2018 GENERAL RETAINED These financial statements are general purpose financial DEVELOPMENT TOTAL however, these are being monitored and are expected to be RESERVE EARNINGS statements which have been prepared in accordance with the FUND maintained within thresholds during the coming year. Corporations Act 2001 and Australian Accounting Standards – Reduced Disclosure Requirements, and comply with other ADOPTION OF NEW AND REVISED Balance at 1 July 2016 1,407 500,000 9,846,728 10,348,135 requirements of the law. ACCOUNTING STANDARDS The financial statements were authorised for issue by the There are no new and revised Standards and Interpretations Profit / (Loss) for the Year - - (906,680) (906,680) Directors on 20 August 2018. adopted in these financial statements affecting the reporting BASIS OF PREPARATION results or financial position. CRITICAL ACCOUNTING JUDGEMENTS AND KEY Total Comprehensive Income for the Year - - (906,680) (906,680) The financial report has been prepared on the basis of SOURCES OF ESTIMATION UNCERTAINTY historical cost, except for the revaluation of certain non- current assets and financial instruments. Cost is based on the In the application of the Company’s accounting policies, Balance at 30 June 2017 1,407 500,000 8,940,048 9,441,455 fair values of the consideration given in exchange for assets. management is required to make judgements, estimates and Accounting policies are selected and applied in a manner assumptions about carrying values of assets and liabilities that Profit / (Loss) for the Year - - (1,645,367) (1,645,367) which ensures that the resulting financial information satisfies are not readily apparent from other sources. The estimates the concepts of relevance and reliability, thereby ensuring and assumptions are based on historical experience and other that the substance of the underlying transactions or other factors that are considered to be relevant. Actual results may Total Comprehensive Income for the Year - - (1,645,367) (1,645,367) events is reported. differ from these estimates. Fair value is the price that would be received to sell an asset The estimates and underlying assumptions are reviewed Balance at 30 June 2018 1,407 500,000 7,294,681 7,796,088 or paid to transfer a liability in an orderly transaction between on an ongoing basis. Revisions to accounting estimates are market participants at the measurement date, regardless of recognised in which the estimate is revised if the revision whether that price is directly observable or estimated using affects only that period, or in the period of revision and future STATEMENT OF CASH FLOWS another valuation technique. In estimating the fair value of periods if the revision affects both current and future periods. an asset or a liability, the Company takes into account the FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018 USEFUL LIVES OF PROPERTY, characteristics of the asset or liability if market participants PLANT AND EQUIPMENT 2018 2017 would take those characteristics into account when pricing NOTE $ $ the asset or liability at the measurement date. Fair value for As described in Note 1(q), the Company reviews the estimated measurement and/or disclosure purposes in these financial useful lives of property, plant and equipment at the end of Cash Flows from Operating Activities statements is determined on such a basis, except for share- each annual reporting period. During the financial year, the Receipts from Operations 24,846,359 23,399,075 based payment transactions that are within the scope of IFRS directors made no change to the useful lives of the property, Proceeds from Government Grants - - 2, leasing transactions that are within the scope of IAS 17, and plant and equipment held. measurements that have some similarities to fair value but are Payments to Suppliers and Employees (24,106,910) (22,126,797) not fair value, such as net realisable value in IAS 2 or value in STANDARDS AND INTERPRETATIONS Interest Paid (64,788) (12,657) use in IAS 36. ISSUED NOT YET EFFECTIVE GST Received / (Paid) (1,388,091) (1,353,267) In addition, for financial reporting purposes, fair value At the date of authorisation of the financial report, a number of Standards and Interpretations listed below were in issue Net Cash Provided by / (Used in) Operating Activities 19(b) (713,430) (93,646) measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements but not yet effective. are observable and the significance of the inputs to the fair Initial application of the following Standards will not materially Cash Flows from Investing Activities value measurement in its entirety, which are described as affect any of the amounts recognised in the financial report, Payment for Property, Plant & Equipment (449,243) (360,665) follows: but will change the disclosures presently made in relation to the Company’s financial report: Repayment of Loans - - ƒƒ Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can Proceeds from the sale of Property, Plant & Equipment - - EFFECTIVE access at the measurement date; FOR ANNUAL (Payments for)/ Proceeds from sale of Investments - 200,000 REPORTING ƒƒ Level 2 inputs are inputs, other than quoted prices included PERIODS Interest Received - 1 within Level 1, that are observable for the asset or liability, BEGINNING ON STANDARD / INTERPRETATION OR AFTER Net Cash Provided by / (Used in) Investing Activities (449,243) (160,664) either directly or indirectly; and AASB 9 ‘Financial Instruments’, and ƒƒ Level 3 inputs are unobservable inputs for the asset or 1 January 2018 liability. the relevant amending standards Cash Flows from Financing Activities The financial statements have been prepared on the going AASB 15 ‘Revenue from (Repayment of) / Proceeds from Borrowings 47,919 (495,893) 1 January 2018 concern basis. This contemplates continuity of normal Contracts with Customers Net Cash Provided by / (Used in) Financing Activities 47,919 (495,893) business activities and the realization of assets and discharge AASB 2014-5 ‘Amendments to of liabilities in the ordinary course of operations. The Directors Australian Accounting Standards 1 January 2018 are of the opinion that this basis of preparation is appropriate, arising from AASB 15’ Net (Decrease) / Increase in Cash Held (1,114,754) (750,203) noting that: AASB 2015-8 ‘Amendments to Cash at the Beginning of the Financial Year (678,362) 71,841 ƒƒ Short term financing obligations are capable of being met Australian Accounting Standards 1 January 2018 Cash at the End of the Financial Year 19(a) (1,793,116) (678,362) from liquid investments held; – Effective date of AASB 15’ ƒƒ Sufficient short term and long term banking facilities are in AASB 16 ‘Leases’ 1 January 2019 place; SIGNIFICANT ACCOUNTING POLICIES ƒƒ Cash flows from operations are forecast to be positive for The following significant accounting policies have been FY19 and beyond; and adopted in the preparation and presentation of the ƒƒ The Board monitors its liquidity on a monthly basis through financial report: Notes to the financial statements are included on pages 109 to 119

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(a) Income Tax allowance account. Changes in the carrying amount of the of acquisition of an asset or as part of an item of expense; constant rate of interest on the remaining balance of the allowance account are recognised in profit or loss. or liability. Finance expenses are immediately recognised in No provision for income tax is necessary, as the company is profit or loss. exempt from income tax under Division 50 of the Income Tax Derecognition of Financial Assets ii. for receivables and payables which are recognised inclusive of GST. Assessment Act 1997. The Company derecognises a financial asset only when the (p) Other Financial Liabilities (b) Cash and Cash Equivalents contractual rights to the cash flows from the asset expire, or The net amount of GST recoverable from, or payable to, Other financial liabilities, including borrowings, are initially when it transfers the financial asset and substantially all the the taxation authority is included as part of receivables or measured at fair value, net of transaction costs. Cash and cash equivalents comprise cash on hand; cash in risks and rewards of ownership of the asset to another entity. payables. banks and investments in money market instruments, net Other financial liabilities are subsequently measured at If the Company neither transfers nor retains substantially all of outstanding bank overdrafts. Bank overdrafts are shown Cash flows are included in the statement of cash flows on a amortised cost using the effective interest method, with the risks and rewards of ownership and continues to control within borrowings in current liabilities in the balance sheet. gross basis. The GST component of cash flows arising from interest expense recognised on an effective yield basis. the transferred asset, the Company recognises its retained investing and financing activities which is recoverable from, (c) Employee Benefits The effective interest method is a method of calculating the interest in the asset and an associated liability for amounts it or payable to, the taxation authority is classified as operating amortised cost of a financial liability and of allocating interest A liability is recognised for benefits accruing to employees in may have to pay. If the Company, retains substantially all the cash flows. expense over the relevant period. The effective interest respect of wages and salaries, annual leave and long service risks and rewards of ownership of a transferred financial asset, (j) Inventories rate is the rate that exactly discounts estimated future cash leave when it is probable that settlement will be required the Company continues to recognise the financial asset and payments through the effective useful life of the financial and they are capable of being measured reliably. Liabilities also recognises a collateralised borrowing for the proceeds Inventories are valued at the lower of cost and net realisable liability, or (where appropriate) a shorter period, to the net recognised expected to be settled within 12 months are at received. value. carrying amount on initial recognition. their nominal values using the remuneration rate expected (e) Borrowings (k) Revenue Recognition to apply at the time of settlement. Liabilities recognised in (q) Property, Plant and Equipment Borrowings are recorded initially at fair value, net of respect of employee benefits, which are not expected to be Sale of goods and disposal of assets transaction costs. Assets acquired are recorded at the cost of acquisition, being settled within 12 months, are measured as the present value Revenue from the sale of goods and disposal of other assets the purchase consideration determined as at the date of of the estimated future cash outflows to be made by the Subsequent to initial recognition, borrowings are measured is recognised when the company has passed control of the acquisition plus costs incidental to the acquisition. company in respect of services provided by employees up to at amortised cost with any difference between the initial goods or other assets to the buyer. reporting date. recognised amount and the redemption value being The depreciable amount of fixed assets is depreciated over recognised in profit and loss over the period of the borrowing Rendering of Services their estimated useful lives commencing from the time the Defined contribution plans using the effective interest rate method. Revenue from a contract to provide services is recognised by asset is held ready for use on a straight line basis. Leasehold Contributions to defined contribution superannuation plans reference to the stage of completion of the contract. improvements are amortised over the shorter of either the are expensed when incurred. (f) Impairment of Assets unexpired period of the lease or the estimated useful lives of At each reporting date, the Company reviews the carrying Contributions of assets the improvements. (d) Financial Assets amount of its tangible and intangible assets to determine Revenue arising from the contribution of assets is recognised Depreciation of plant and equipment is done over 3-10 Investments are recognised and derecognised on trade date whether there is any indication that those assets have suffered when the Company gains control of the contribution or the years, ground facilities are depreciated over approximately where purchase or sale of an investment is under a contract an impairment loss. If such an indication exists, the recoverable right to receive the contribution. 10-20 years and leasehold improvements and the library are whose terms require of the investment within the amount of the asset is estimated in order to determine the (l) Leased Assets amortised over 40-50 years. timeframe established by the market concerned, and are extent of the impairment loss (if any). Where the asset does not initially measured at fair value, net of transaction costs except generate cash flows that are independent from other assets, Operating lease payments are recognised as an expense on Fixed assets classified as work in progress are depreciated for those financial assets classified as at fair value through the entity estimates the recoverable amount of the cash- a basis which reflects the pattern in which economic benefits over an effective useful life, between 20-50 years. profit and loss which are initially measured at fair value. generating unit to which the asset belongs. from the leased assets are consumed. Financial Assets at Fair Value through Profit or Loss (g) Government Grants (m) Borrowing Costs The Company has classified shares and options as financial Government Grants related to income are recognised as Borrowing costs are recognised in profit and loss in the period assets at fair value through profit or loss. Financial assets held income over the periods necessary to match them with the in which they are incurred. for trading purposes are classified as current assets and are related costs. Government grants that are receivable as (n) Provisions stated at fair value, with any resultant gain or loss recognised compensation for expenses or losses already incurred or in profit or loss. for the purpose of giving immediate financial support to the Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, Loans and Receivables entity with no future related costs are recognised as income in the period in which it becomes receivable. Government it is probable that the Company will be required to settle the Trade receivables, loans, and other receivables are recorded grants relating to assets are treated as deferred income and obligation, and a reliable estimate can be made of the amount at amortised cost less impairment. recognised in profit and loss over the expected useful lives of of the obligation. Impairment of Financial Assets the assets concerned. The amount recognised as a provision is the best estimate Financial assets, other than those at FVTPL, are assessed for The current liability portion of the deferred grant income of the consideration required to settle the present obligation indicators or impairment at the end of each reporting period. contributes to an excess of current liabilities over current at the end of the reporting period, taking into account the Financial assets are considered to be impaired when there assets. The Directors note that this deferred grant income risks and uncertainties surrounding the obligation. Where a is objective evidence that, as a result of one or more events does not have a cash impact and believe the impact of this provision is measured using the cash flows estimated to settle that occurred after the initial recognition of the financial asset, on the working capital deficiency is therefore not unexpected the present obligation, its carrying amount is the present the estimated future cash flows of the investment have been and is reasonable. value of those cash flows. affected. (h) Payables (o) Finance Leases For certain categories of financial asset, such as trade Liabilities are recognised for amounts to be paid in the future Leases are classified as finance leases whenever the terms receivables, assets that are assessed not to be impaired for goods or services received, whether or not billed to the of the lease transfer substantially all the risks and rewards individually are, in addition, assessed for impairment on Company. Trade payables are normally settled within thirty of ownership to the lessee. All other leases are classified as a collective basis. Objective evidence of impairment for a (30) days. The net fair value of Creditors approximates their operating leases. portfolio of receivables could include the Company’s past carrying amounts. An invoice was received after the signing Assets held under finance leases are initially recognised as experience of collecting payments. of the financial statements for 30 June 2017. This has been assets of the Company at their fair value at the inception of The carrying amount of the financial asset is reduced by reflected in the prior year comparatives. the lease or, if lower, at the present value of the minimum the impairment loss directly for all financial assets with the (i) Goods and Services Tax lease payments. The corresponding liability to the lessor is exception of trade receivables, where the carrying amount included in the statement of financial position as a finance is reduced through the use of an allowance account. When Revenues, expenses and assets are recognised net of the lease obligation. a trade receivable is considered uncollectible, it is written goods and services tax (GST), except: Lease payments are apportioned between finance expenses off against the allowance account. Subsequent recoveries i. where the amount of GST incurred is not recoverable from and reduction of the lease obligation so as to achieve a of amounts previously written off are credited against the the taxation authority, it is recognised as part of the cost

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2. PROFIT FROM OPERATIONS 2018 2017 4. RELATED PARTIES $ $ Transactions with Director-related Entities Revenue Ben Targett (Director) is the General Manager of The Old Woolstore Apartment Hotel. General Operating Income 24,167,561 22,113,934 During the financial year Cricket Tasmania had the following related party transactions with that entity: Interest Received - 1 ƒƒ A sponsorship arrangement that included discounted terms and conditions during BBL07 Rental Revenue 61,422 131,724 ƒƒ Accommodation and meals on normal terms and conditions Unrealised Gain on Investments 138,371 197,422 Total Revenue 24,367,354 22,443,081 5. TRADE AND OTHER RECEIVABLES 2018 2017 $ $ Expenditure by nature of expense: Sundry Debtors (i) 868,350 717,916 Administration and General Expenses 8,054,268 6,963,505 Allowance for doubtful debts - (105,682) Finance Costs 57,705 12,657 868,350 612,234 Cricket Operations Expenses 14,996,193 13,552,124 (i) Trade receivables disclosed above are classified as loans and receivables and are therefore measured at amortised cost. Depreciation Property, Plant & Equipment 1,883,818 2,008,207 The average credit period on sales of goods and services is 7 days. No interest is charged on outstanding trade receivables. It is Transfers to Provisions for Employee Benefits (8,269) (87,610) expected that all trade receivables are recoverable based on past experience. Contribution to Defined Contribution Funds 1,006,506 878,837 Due to the low percentage of new customers it is considered unnecessary to assess the customers credit quality. Auditor's Fees 22,500 22,041 Ageing of past due but not impaired Unrealised Loss on Investments - - 30 - 60 days 70,827 101,296 Total Expenditure 26,012,721 23,349,761 61 - 90 days 2,383 3,300 Profit/(Loss) for the year (1,645,367) (906,680) 91 - 120 days 118,800 3,411 192,010 108,007 The auditor of Cricket Tasmania is Deloitte Touche Tohmatsu.

Movement in allowance for doubtful debts 3. KEY MANAGEMENT PERSONNEL REMUNERATION Balance at the beginning of the year 105,682 72,841 Impairment losses recognised on receivables (105,682) 32,841 The key management personnel of Cricket Tasmania during the year were: Balance at the end of the year - 105,682 Nick Cummins (Chief Executive) Drew Ginn (General Manager - High Performance) - commenced 23 July 2017 Aging of Impaired Trade Receivables Adam Griffith (State Coach) > 120 days 1,857 105,682 Zoe Rohrer (General Manager - Corporate Services) - commenced 21 March 2018 Total 1,857 105,682 David Paynter (General Manager - Corporate Services) - departed 9 March 2018 Stephen McMullen (General Manager - Venue Operations) Phil Rigby (General Manager - and Commercial) - commenced 4 September 2017 6. PREPAYMENTS Bill Avery (General Manager - Hobart Hurricanes and Commercial) - departed 19 July 2017 Prepaid Expenses 154,320 150,319 Taryn Brighten (General Manager - Events & Operations) - commenced 21 May 2018 154,320 150,319 Ben Smith (General Manager - Game and Market Development)

The aggregate compensation of the key management personnel of the Company is set out below: 7. INVENTORIES Total Employment Benefits 1,240,838 1,247,922 Bar stock - at cost 29,456 39,410 Food stores - at cost 18,781 21,007 Directors Merchandise - at cost 87,786 62,613 Directors who have held office during the financial year are: J.M. Bailey, D.C. Boon, P.T. Clark, D. Davey, A.I. Gaggin, P.J. Green (resigned), B.J. Jefferies, R.E.G. Kemp, C.P. Mitchell, S. Samec (resigned) and B. Targett. 136,023 123,030 In respect of the financial year, the directors of the Company, directly or indirectly, did not receive any remuneration. Inventories held at year end represent finished goods.

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8. INVESTMENTS 2018 2017 12. BORROWINGS 2018 2017 (AT FAIR VALUE THROUGH PROFIT OR LOSS) $ $ $ $ AMP eWrap 2,004,884 1,866,514 Secured - at amortised cost 2,004,884 1,866,514 Bank Loans (i) 1,200,000 1,200,000 The underlying investment return is disclosed in Note 22. Bank Overdraft (ii) 1,806,749 705,831 CA Loan (iii) 3,579,251 3,579,251 Finance Lease Liabilities (Note 13) 112,107 64,189 9. TRADE AND OTHER PAYABLES 6,698,107 5,549,271

Trade Payables 830,740 722,881 Accruals 1,148,005 557,129 (a) Current 1,832,487 1,917,837 1,978,745 1,280,010 (b) Non-Current 4,865,620 3,631,434 6,698,107 5,549,271 Terms are net 30 days. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms. Loans with the Commonwealth Bank of Australia and secured by 1st mortgage over the Lease and over the Assets of the Association. (i) Market rate loans for $1.2 million, variable interest only payable monthly from the date of funding, maturing in January 2021. 10. DEFERRED REVENUE Total facility available of $1.2 million. (ii) Bank overdraft facility of $2 million, variable interest only. Total undrawn funds of $193 thousand at 30 June 2018 (2017: Government Grants (i) $1.29 million). (a) Current 1,234,794 1,232,408 (iii) provided the Association with a $4 million interest free loan during the 2015/16 financial year. The loan (b) Non-Current 32,425,282 33,661,480 is repayable in 3 equal instalments between now and January 2022. For accounting purposes the loan is required to be 33,660,076 34,893,888 recognised at Net Present Value. For this purpose an interest rate of 4.4% has been used. (i) The deferred revenue arises as a result of a Government Grant received for the installation of the lights, and an additional Government Grant received to assist in the redevelopment of the Western side of the arena. Both revenue items will be amortised over the useful life of the respective assets. 13. OBLIGATIONS UNDER FINANCE LEASES Finance leases relate to Plant and Equipment with lease terms of 5 years. The Association's obligations under the finance leases are secured by the lessor's title to the leased assets.

11. PROVISIONS 2018 2017 (a) Current $ $ Employee Benefits (i) 426,437 411,688 Minimum Lease Payments Players Payroll Tax Provision (ii) 80,000 80,000 Not later than one year 32,023 15,618 506,437 491,688 Later than one year and not later than five years 94,900 58,566 Later than five years - - (b) Non-Current 126,923 74,184 Employee Benefits (i) 99,586 119,658 Less future finance charges (14,816) (9,995) 99,586 119,658 Present Value of Minimum Lease Payments 112,107 64,189 606,023 611,346 (i) The provision for employee benefits represents annual leave and vested long service leave entitlements accrued. Included in Financial Statements as: (ii) The players payroll tax provision comes from the payroll tax that may fall due on the players contingency payment at the - Current Borrowings (Note 12(a)) 25,738 12,005 conclusion of the current Memorandum of Understanding with the Australian Cricketers Association. - Non-Current Borrowings (Note 12(b)) 86,369 52,184 112,107 64,189

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14. PROPERTY, PLANT AND PLANT BLUNDSTONE MUSEUM OVAL AND GROUND LEASEHOLD ARENA AND WESTERN REDEVELOPMENT TOTAL EQUIPMENT AT COST EQUIPMENT FACILITIES IMPROVEMENTS GYMNASIUM LIBRARY GRANDSTAND WIP BA LIGHTS (AT COST) Gross Carrying Amount Balance at 1 July 2016 4,171,744 1,078,416 18,045,228 300,990 104,022 36,991,461 490,260 4,317,376 65,499,497 Additions 219,150 16,314 2,090 11,692 - 111,867 - - 361,113 Disposals (26,444) - - (25,766) - - - - (52,210) Net adjustments ------Balance at 30 June 2017 4,364,450 1,094,730 18,047,318 286,916 104,022 37,103,328 490,260 4,317,376 65,808,400

Accumulated Depreciation/Amortisation Balance at 1 July 2016 (3,528,129) (796,253) (7,890,777) (258,195) (32,069) (1,156,996) (93,080) (1,100,052) (14,855,551) Depreciation/Amortisation (288,040) (54,803) (306,747) (6,323) (4,688) (1,139,456) (27,072) (181,078) (2,008,207) Disposals 25,996 - - 25,766 - - - - 51,762 Net adjustments ------Balance at 30 June 2017 (3,790,173) (851,056) (8,197,524) (238,752) (36,757) (2,296,452) (120,152) (1,281,130) (16,811,996)

Net Book Value As at 30 June 2017 574,277 243,674 9,849,794 48,164 67,265 34,806,876 370,108 3,036,246 48,996,404

Gross Carrying Amount Balance at 01 July 2017 4,364,450 1,094,730 18,047,318 286,916 104,022 37,103,328 490,260 4,317,376 65,808,400 Additions 273,799 16,852 - - - 158,592 - - 449,243 Disposals ------Net adjustments ------Balance at 30 June 2018 4,638,249 1,111,582 18,047,318 286,916 104,022 37,261,920 490,260 4,317,376 66,257,643

Accumulated Depreciation/Amortisation Balance at 01 July 2017 (3,790,173) (851,056) (8,197,524) (238,752) (36,757) (2,296,452) (120,152) (1,281,130) (16,811,996) Depreciation/Amortisation (181,314) (47,064) (290,357) (7,195) (4,610) (1,145,128) (27,072) (181,078) (1,883,818) Disposals ------Net adjustments ------Balance at 30 June 2018 (3,971,487) (898,120) (8,487,881) (245,947) (41,367) (3,441,580) (147,224) (1,462,208) (18,695,814)

Net Book Value As at 30 June 2018 666,762 213,462 9,559,437 40,969 62,655 33,820,340 343,036 2,855,168 47,561,829

2018 2017

$ $ Aggregate depreciation and amortisation allocated, whether recognised as an expense or capitalised as part of the carrying amount of other assets during the year: Plant & Equipment 181,314 288,040 Ground Facilities 47,064 54,803 Leasehold Improvements 290,357 306,747 Blundstone Arena Gymnasium 7,195 6,323 Library 4,610 4,688 Western Grandstand 1,145,128 1,139,456 Oval Redevelopment WIP 27,072 27,072 Blundstone Arena Lights 181,078 181,078 1,883,818 2,008,207

116 CRICKET TASMANIA ANNUAL REPORT 2017-18 CRICKET TASMANIA ANNUAL REPORT 2017-18 117 2017/18 Financial Statements

15. RESERVES 2018 2017 19. CASH FLOW INFORMATION 2018 2017 $ $ $ $ Junior Development Reserve 1,407 1,407 (a) Reconciliation of Cash and Cash Equivalents General Reserve 500,000 500,000 For the purpose of this cash flow statement, cash includes cash on hand and 501,407 501,407 the association's Commonwealth Bank cheque account (overdraft) balance: Cash on Hand 13,633 27,469 Junior Development Reserve Balance at the beginning of the financial year 1,407 1,407 Commonwealth Bank - Cheque Account (1,806,749) (705,831) Junior Development Program Grants - - (1,793,116) (678,362) Balance at the end of the financial year 1,407 1,407 No Interest was earned on this account for the financial period. (b) Reconciliation of Profit / (Loss) for the period to Net Cash Flows from Operating Activities

Holds the proceeds from sale of Bradman prints held for future Junior Development Programs. Operating Profit / (Loss) (1,645,367) (906,680) Non-cash Flows in Operating Profit Depreciation & Amortisation 1,883,818 2,008,207 General Reserve Balance at the beginning of the financial year 500,000 500,000 Government Grant Recognised (1,233,811) (1,232,492) Balance at the end of the financial year 500,000 500,000 Loss/(Gain) on Sale of Plant - - Unrealised Loss/(Gain) on Capital Investments (138,371) (197,422)

Held for future unexpected expenses. Interest income received and receivable - (1) Changes in Assets & Liabilities Decrease/(Increase) in Receivables & Inventory (167,429) 433,744 16. RETAINED EARNINGS Increase/(Decrease) in Payables 698,735 (124,233) Increase/(Decrease) in Provisions (111,005) (74,769) Balance at the beginning of the financial year 8,940,048 9,846,728 (713,430) (93,646) Net Profit/ (Loss) (1,645,367) (906,680) Balance at the end of the financial year 7,294,681 8,940,048 20. FINANCIAL INSTRUMENTS

17. MEMBERS GUARANTEE (a) Categories of financial instruments Cricket Tasmania is a Company limited by guarantee and has an exemption under Section 383 of the Corporations Act 2001 Financial assets from displaying "Limited" after its name. If the Company is wound up, each full member, other than an Honorary Life Member, Fair value through profit or loss (FVTPL): is required to contribute a maximum of $2.10 towards meeting outstanding obligations of the Company. Designated as at FVTPL 2,004,884 1,866,514 As at 30 June 2018 the number of full members was 1,406 (2017: 1,673). Loans and receivables 868,350 612,234 Cash and cash equivalents 13,633 27,469 18. OPERATING LEASES Financial liabilities Amortised cost 8,676,852 6,829,281 Cricket Tasmania has a lease with the Clarence City Council for Bellerive Oval. The lease is for 45 years commencing October 2001 and rent is payable at the rate of 0.89% of the gross audited revenue for the previous year, commencing 1 July 2003. The commitment for this lease has not been quantified due to the uncertainty of the amounts to be paid in future years. 21. ECONOMIC DEPENDENCY Cricket Tasmania receives significant funding from Cricket Australia for its operations and participation in Australian Cricket programs and competitions.

22. INVESTMENT RETURNS 2018 2017 ANNUALISED ANNUALISED INVESTMENT INVESTMENT $ RETURN % $ RETURN % Investments consist of: AMP eWrap 2,004,884 7.41% 1,866,514 10.56% Commonwealth Bank Online Saver - 0.00% 8,819 0.00% Investments are brought to account at market value. The net fair value approximates the carrying amounts. All investments are at call.

23. EVENTS AFTER THE REPORTING PERIOD No events have occurred after the reporting period that will have a material impact on the results presented in these financial statements.

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