2018 Annual Report

2018 ANNUAL REPORT

TABLE OF CONTENTS

COROWA RSL CLUB PRESIDENTS REPORT ...... 3 COMMUNITY SUPPORT ...... 4 2018 AGM MEETING MINUTES ...... 5 COROWA RSL BOWLS CLUB PRESIDENT’S REPORT ...... 8 COROWA RSL INDOOR BOWLS CLUB PRESIDENT’S REPORT ...... 9 FINANCIAL REPORT ...... 10

COROWA RSL CLUB PRESIDENTS REPORT

I begin this year’s President Report by endorsing CEO Peter Norris’s excellent job he has done during the past 12 months. Peter has made some tough decisions, the sign of a good leader, although they might not please everybody. The Club has made significant changes in the past 12 months, firstly the upgrade of the gaming area, with patrons saying it ticks all of the boxes. The second project is the solar system, which will not only be an energy saver but will provide shade for our car park. Lastly the club is also looking into an energy wise program which will again reduce energy costs. At this point I would like to thank all of our staff for the wonderful job during the previous year. To those employees who have the club for different reasons thank you for your time working at the venue. Our support of the Corowa and wider community continues with sporting groups, schools and a long list of other worthwhile groups. We have contributed to over 50 groups donating $170,000 this year! Our Club also provides free entertainment in the form of live bands and shows etc. The club prides itself on making the venue a safe and comfortable place for members and guests to enjoy these functions. To all of the sporting bodies within the club thank you to all of the volunteers with the organisation of the bowls, squash and indoor bowls. To Martin Magill and his Sub Branch Members a big thank you for the excellent job they do especially on Anzac Day which has become a very well respected and supported day by both adults and children. During the year we were unfortunate to lose our long-time treasurer of the club in John Brennan. John was on the Board for 10 years and always made us laugh with his eating habits. Two new members have joined the Board this year in the form of Elin Collins and Angus Lingham, we welcome them on board and look forward to their input. Thank you to my fellow board members for their support and friendship throughout the year. Phillip Scott President Corowa RSL Club

COMMUNITY SUPPORT Throughout the year the Corowa RSL Club has donated as a combination of in-kind and cash of $170,931.75.

Corowa RSL Park $ 48,000.00 Federation Shire $ 550.00 Regan Lions Charity Golf Day $ 6,982.57 Corowa Rutherglen Junior Football Club $ 500.00 Corowa Squash Club $ 5,745.59 Corowa Rutherglen Netball Club $ 500.00 Corowa Services Bowling Club $ 4,000.00 Wahgunyah Progress Association $ 500.00 Khaki Vehicle Enthusiasts $ 2,272.73 Corowa Amatuer Swimming Club $ 500.00 Corowa Lawn Tennis Club $ 2,000.00 Corowa Business Chamber $ 500.00 Corowa Show Society $ 2,000.00 Corowa Federation Arts $ 500.00 CDHBU Football Netball Club $ 2,000.00 Corowa Rutherglen Netball Club $ 500.00 Corowa Race Club $ 2,000.00 Corowa South Public School $ 500.00 Wahgunyah Speedway $ 2,000.00 Corowa RSL Indoor Bowls $ 400.00 Corowa Services Bowling Club $ 2,000.00 Corowa Clay Target Club $ 80.00 McGrath Foundation $ 1,940.00 Corowa Rutherglen Netball Club $ 50.00 Federation Council $ 1,500.00 Blue Light Disco $ 2,400.00 Corowa Little Athletics $ 1,500.00 Search & Rescue $ 20,000.00 Corowa Rowling Club $ 1,200.00 The Legacy Club $ 5,000.00 API Bowls Club $ 1,000.00 Corowa Rotary $ 5,000.00 Corowa Anglers Club $ 1,000.00 Corowa RSL Sub Branch $ 7,000.00 Murray Felines $ 1,000.00 Corowa Firebrigade $ 1,452.00 Border Ovarian Cancer Awareness $ 1,000.00 Wahgunyah Mens Shed $ 1,850.00 Fishing for the future $ 1,000.00 Wahgunyah Mens Shed $ 175.79 Wangaratta Rod & Custom Club $ 800.00 Amaranth Foundation $ 6,500.00 Southern Cross Karinya $ 750.00 Corowa Hospital Auxillary $ 23,033.03 Southern Cross Karinya $ 600.00 Chiltern Pro Rodeo $ 600.00 Corowa Football Club $ 550.00

$170,931.75

2018 AGM MEETING MINUTES

Minutes of the 46th Annual General Meeting of the Corowa RSL Club Limited held in the clubhouse on Monday 14th May 2018 at 7:00pm

President Philip Scott opened the meeting welcoming all present.

President Scott thanked all the candidates at the recent Club Election for putting themselves forward to be representatives of the Club.

Present: 15 Sub Branch Members, 17 Club Members.

Apologies: 3 members.

Minutes of the Previous Annual General Meeting It was resolved that the Minutes of the 45th Annual General Meeting held on 26th April 2017 be approved. Moved: F Gee Seconded: J Delany Carried

President’s Report It was resolved that the President’s Report as printed in the 2017 Annual Report be received. Moved: M Magill Seconded: D Martin Carried

Financial Statements CEO P Norris explained the reduction in profit for the number was due to a number of factors. Revenue dropped 2%, Disposal on Assets was $219,000 less than 2016, Electricity had increased $80,000 and Depreciation increased $60,000 due to a change in policy which reduced the effective life of poker machines from 8 years to 5 years to better reflect the rate in which machines are changed over. In addition, there was $200,000 in employee benefits and changes are being implemented in Executive Contracts to ensure the Club is safeguarded against future incidents. Mr Norris outlined that a substantial Solar project was underway to future proof the Club against further increases in energy costs, and a refurbishment of the Gaming Room was also underway to ensure the Club became a destination of choice for players. Mr Norris also outlined the Reverse Vending Machine contract was underway as a source of additional income, and to bring more people to the front of the Club and RSL Park as a way of marketing.

It was resolved that the Financial Statements as printed in the 2017 Annual Report be received. Moved: M Magill Seconded: L Thomas Carried

First Ordinary Resolution “That the Members hereby approve the payment of an honorarium to the President of the Club in the sum of $8,000 for his services as the President of the Club until the Annual General Meeting in 2018, such honorarium to be paid by weekly or such other instalments as the Club and the President may agree from time to time.” Moved: A Watts Seconded: G Leetet Carried

First Special Resolution [The First Special Resolution is to be read in conjunction with the notes to members set out below.] That the Constitution of Corowa RSL Club Limited be amended by deleting Rule 72 and in lieu thereof inserting the following new Rule 72:

(a) “72. The quorum for a meeting of the Board shall be four (4) directors or the majority of directors on the Board (whichever is greater).”

Notes to Members on the Special Resolution

1. The Special Resolution proposes to amend the quorum for board meetings.

2. In this regard: (a) It is common practice and generally recommended that the quorum for board meetings comprise the “majority of directors on the Board”.

(b) The current quorum for board meetings of the Club is four (4) directors.

(c) The Club currently has seven (7) directors and as a result, the quorum for board meetings currently comprises the “majority of directors on the Board”.

(d) However:

(i) Pursuant to the Club’s Constitution, the Registered Clubs Act and the Registered Clubs Regulation, the Board may appoint two (2) directors to the Board (in addition to the seven (7) elected directors);

(ii) If the Board appoints two (2) additional directors to the Board:

(iii) there would be nine (9) directors on the Board; and

(iv) if the quorum was four (4) directors, it would comprise less than the “majority of directors on the Board”.

(e) Accordingly, the Special Resolution will ensure that the quorum for board meetings will always be the “majority of directors on the Board” irrespective of the number of directors on the Board at the time and cannot be less than four (4) directors.

Mr Norris outlined the purpose behind special resolution. The Special Resolution failed to obtain a seconder and thus was not voted on.

Other Business There was no other business.

Meeting Closed: 7:15pm.

COROWA RSL BOWLS CLUB PRESIDENT’S REPORT

I would like to thank the members for again granting me the privilege of being your Club President, also all executive and committee members for their input and assistance throughout the past year. And all members who manned the bar and assisted in any works that were done around the club throughout the year. On behalf of all members a big thank you to the Corowa RSL Club Board Of Directors, CEO Peter Norris and all staff for their sponsorship, assistance, and cooperation throughout the year and for providing and maintaining the facilities that enable us to continue to play and enjoy our game of bowls Congratulations to the members of our Mid-Week Pennant Division B2 Side in winning their final against Rutherglen, also to all other members who participated in the Weekend Pennant Finals. I thank the Weekend and Mid-Week Pennant Selectors for their commitment to the task of ensuring that we had competitive sides representing our club throughout this pennant season, this was shown by having 3 sides in the Weekend Finals and 1 side in the Mid-Week Pennant Final’s. To our Match Committee I thank them for their time and commitment in ensuring that all club events and tournaments were run and completed successfully. Congratulations to all club event winners and runner ups and to those club members who trialled for the Ovens & Murray Bowls Region Women’s and Mens representative sides. To Nathan and the Greens Committee we thank you for the time, effort, and commitment in sticking to your maintenance program which resulted in the members and visitors being provided with good playing surfaces throughout this season, this resulted in us being given host club duties during the Ovens & Murray Bowls Region final series. To our external sponsors we thank you all for your continued sponsorship that ensures our annual tournaments are a success and enable the printing of the club syllabus. To the members that we have lost throughout the season we send our deepest sympathies to their family and friends, and we wish all other members who are on the sick or injured list all the best in a speedy recovery. Barry Warburton President Corowa RSL Bowls Club

COROWA RSL INDOOR BOWLS CLUB PRESIDENT’S REPORT

I would like to thank the committee for their ongoing support for me this year, especially Peter Manning for keeping the minutes & writing our weekly column in the Corowa Free Press. Evelyn has done her usual good job in keeping our finances in good shape & doing a lot to organize our trips this year. On a rather rainy & cold day we went to have a look at the paintings on silos including Tungamah, St James & finished up at Goorambat for lunch. We also had an excellent trip to the Altina Wildlife Park at Darlington Point including a very good lunch at the Darlington Point Club.

Unfortunately. We were unable to have our usual challenge with Barooga as they were unable to find a suitable date, however our challenge with S&A went ahead as usual.

Due to lack of entries we were forced to cancel our 2-day tournament this year & unfortunately we were not the only club who had to cancel due to lack of entries. We had another successful Charity day & we were able to donate $1000.00 to Corowa Rescue Club. Unfortunately, we had another year when sickness affected several our members & I wish everyone better health this year.

Finally, on behalf of our Bowls Club I would like to thank the RSL Club for their ongoing support this year. To all the staff and particularly the CEO and the office staff, a very big thank you for all your assistance throughout the year.

Doreen Plemming PRESIDENT

FINANCIAL REPORT

COROWA RSL CLUB LIMITED

ABN: 28 001 066 628

FINANCIAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2018 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 CONTENTS FOR THE YEAR ENDED 31 DECEMBER 2018

Financial Report Page Club Property Declaration 1 Directors' Report 2 Auditor's Independence Declaration 6 Statement of Profit or Loss and Other Comprehensive Income 7 Statement of Financial Position 8 Statement of Changes in Equity 9 Statement of Cash Flows 10 Notes to the Financial Statements 11 Directors' Declaration 27 Independent Auditor's Report 28 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 CLUB PROPERTY DECLARATION FOR THE YEAR ENDED 31 DECEMBER 2018

Pursuant to Section 41J(2) of the Registered Clubs Act 1976 the Directors declare that, for the financial year ended 31 December 2018, the classification of the freehold land is as follows:

Property Address Current Usage Classification

23-33 Betterment Parade, Corowa NSW 2646 Corowa RSL Premises Core

28-36 Betterment Parade, Corowa NSW 2646 Car Park Core

3-7 Whitehead Street, Corowa NSW 2646 Rental Property Non-Core

14 Jackson Street, Corowa NSW 2646 Rental Property Non-Core

Notes to Members

Section 41J(2) of the Registered Clubs Act 1976 requires the annual report to specify the core property and non- core property of the Club as at the end of the financial year to which the report relates.

Core property is any real property owned or occupied by the Club that comprises:

(a) the defined premises of the Club; or

(b) any facility provided by the Club for use of its members and their guests; or

(c) any other property declared by a resolution passed by a majority of the members present at a general meeting of Ordinary members of the Club to be core property of the Club.

Non-core property is any other property other than that referred to above as core property and any property which is declared by the members at a general meeting of ordinary members of the Club not to be core property.

The significance of the distinction between core property and non-core property is that the Club cannot dispose of any core property unless:

(a) the property has been valued by a registered valuer within the meaning of the Valuers Act 2003; and

(b) the disposal has been approved at a general meeting of the ordinary members of the Club at which the majority of the votes cast support the approval; and

These disposal provisions and what constitutes a disposal for the purposes of section 41J are to some extent modified by regulations made under the Registered Clubs Act 1976 and by Section 41J itself. For example, the requirements above do not apply to core property that is being leased or licenced for a period not exceeding 10 years on terms that have been the subject of a valuation by a registered valuer.

1 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

The Directors present their report on Corowa RSL Club Limited for the financial year ended 31 December 2018.

Directors The names of the Directors in office at any time during, or since the end of the year are:

Names Position Appointed/Resigned Philip Desmond Scott President Appointed: 28 April 2003 Jennifer Gay Delany Vice President Appointed: 17 June 2009 Francis Dennis Gee Vice President Appointed: 11 November 2010 Christopher Thomas Treasurer Appointed: 15 March 2017 Jennifer Eva Hopgood Director Appointed: 27 April 2014 Elin Irene Collins Director Appointed: 16 May 2018 Angus Lingham Director Appointed: 1 January 2019 John Patrick Brennan Treasurer Appointed: 12 May 2008 / Resigned: 28 November 2018 Ronald John Welfare Director Appointed: 27 April 2016 / Resigned: 18 April 2018 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities The principal activities of Corowa RSL Club Limited during the financial year were the operations of a registered club on behalf of its members. No significant changes in the nature of the Company's activities occurred during the financial year.

Short term objectives The Company's short term objectives are to: x provide a safe environment for members and their guests; and x continue to give members and their guests the best service possible.

Long term objectives The Company's long term objectives are to: x ensure financial security; x grow the Club's operations in accordance with members interests; and x trade profitably to enable updating of amenities and guarantee future growth.

Members' guarantee Corowa RSL Club Limited is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. In the event of, and for the purpose of winding up of the Company, the constitution states that each member is required to contribute a maximum of $2 each towards meeting any outstanding obligations of the Company. At year end, the total amount that members of the Company are liable to contribute if the Company is wound up is $17,200 (2017: $16,302).

2 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Information on Directors

Philip Desmond Scott President Qualifications and Experience Certificate III in Hospitality, Food Safety Officer, Greenkeeper, owner and operator of own catering business, and Corowa RSL Sub Branch Member.

Jennifer Gay Delany Vice President Qualifications and Experience 7 years experience as Operations Manager (Computer) Camberwell Council (Vic), 20 years experience as the Company Director-Gulf Pastoral P/L (Retailing & Home Building), 7 years experience as a Company Director for Bethlee Distributors P/L (Retailing), and 11 years volunteer experience as the Honorary Treasurer- Corowa Pastoral, Agricultural & Horticultural Society Inc.

Francis Dennis Gee Vice President Qualifications and Experience Qualified Baker, extensive experience in Hotel operations, 20 years volunteer service to the Albury Harness Racing Club, owner and operator of a commercial bus Company for 8 years, Corowa RSL Sub Branch Member, and Corowa Services Bowling Club Committee Member.

Christopher Thomas Treasurer Qualifications and Experience Completion of Director Foundation & Management Collaboration and Finance for Club Boards courses, 24 years Victoria police service, Certificate IV in OHS and Certificate IV in Assessment and Workplace Training.

Jennifer Eva Hopgood Director Qualifications and Experience Former President for 12 years of the Carrum Ladies Football Club, Director of the Mentone Hotel for 3 years, Licensee of the Prince Alfred Hotel in Port Melbourne for 4 years, and extensive volunteer service to the Corowa RSL Club for the Country Roundup Weekend and McGrath Foundation High Tea.

Elin Irene Collins Director Qualifications and Experience Chartered Accountant, Principal of Focus Partners Chartered Accountants and Financial Services. 16 years public practice accounting experience for small and medium sized businesses and individuals in taxation, budgeting, finance and advisory services. All Directors are members of the Club Directors Institute.

3 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Meetings of Directors During the financial year, 12 meetings of Directors and 3 Finance Committee meetings were held. Attendances by each Director during the year were as follows:

Directors' Meetings Finance Committee Meetings Number eligible to Number eligible to attend Number attended attend Number attended Philip Desmond Scott 12 12 - - Jennifer Gay Delany 12 12 - - Francis Dennis Gee 12 11 - - Christopher Thomas 12 12 3 3 Jennifer Eva Hopgood 12 10 - - Elin Irene Collins 8 833 John Patrick Brennan 10 9-- Ronald John Welfare 3 3--

Operating results The profit of the Company after providing for income tax amounted to $133,376 (2017: $336,407). A review of the operations of the Company during the financial year and the results of those operations found that the changes in market demand and competition have contributed to the Company's operating profit before tax.

Significant changes in state of affairs There have been no significant changes in the state of affairs of the Company during the year.

Events after the reporting date

The Directors signed an agreement with the Euston Bowling & Recreation Club Limited (ABN: 78 002 525 215) on 22 May 2018 for the sale of eighteen (18) gaming machine entitlements. For each three (3) gaming machine entitlements sold, two (2) are required to be transferred to the Euston Bowling & Recreation Club Limited premises and one (1) is to be VXUUHQGHUHG to the Liquor & Gaming Authority.

The total sales price amounted to $420,000 (GST exclusive), being $70,000 for every three (3) entitlements sold. On 7 June 2018, the Euston Bowling and Recreation Club Limited paid a deposit of $25,000 with the remaining balance of $395,000 being received on transfer of the entitlements in January 2019. Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could 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 and results Likely developments in the operations of the Company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the Company.

Environmental issues The Company's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a State or Territory of Australia other than the Smoke-Free Environment Act 2000, Smoke-Free Environment Amendment Regulation 2009, and the Smoke-Free Environment Regulation 2007 which bans and regulates smoking in enclosed public places as well as specified public places.

4 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Indemnification The Company has paid premiums to insure each of its Director's against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of Director of the Company, other than the conduct involving a wilful breach of duty in relation to the Company. The Company has not indemnified its Auditor's.

Auditor's independence declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 31 December 2018 has been received and can be found on page 6 of the financial report.

Signed in accordance with a resolution of the Board of Directors:

Director: ...... Director: ...... Philip Desmond Scott Francis Dennis Gee

Dated 24 April 2019

5 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 AUDITOR'S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 31 DECEMBER 2018

We declare that, to the best of our knowledge and belief, during the year ended 31 December 2018, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

National Audits Group Pty Ltd Authorised Audit Company

Steven J Watson Managing Director

Dated 24 April 2019

Wagga Wagga

6 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 Note $ $

Revenue 4 9,975,820 9,725,122

Board allowances and honorariums (36,205) (34,398) Cleaning (57,736) (49,124) Depreciation and amortisation expense (1,628,267) (1,605,048) Donations and sponsorships (92,880) (134,795) Electricity and gas (363,563) (304,709) Employee benefits expense (3,808,646) (3,716,186) Entertainment and promotions (797,392) (724,416) Insurance (74,326) (70,385) Members expenses (302,199) (167,905) Other expenses (696,576) (613,811) Professional services (72,518) (58,110) Purchases (1,550,124) (1,560,359) Repairs and maintenance (362,012) (349,469)

Profit before income tax 133,376 336,407 Income tax expense 2 (a), 5 - -

Other comprehensive income - - Total comprehensive income for the year 133,376 336,407

The accompanying notes form part of these financial statements. 7 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 Note $ $

ASSETS CURRENT ASSETS Cash and cash equivalents 6 3,255,772 4,501,176 Trade and other receivables 7 60,871 38,696 Inventories 8 84,105 90,883 Other assets 9 213,129 119,711

TOTAL CURRENT ASSETS 3,613,877 4,750,466 NON-CURRENT ASSETS Financial assets 10 438,823 466,901 Property, plant and equipment 11 16,106,343 15,174,108

TOTAL NON-CURRENT ASSETS 16,545,166 15,641,009 TOTAL ASSETS 20,159,043 20,391,475

LIABILITIES CURRENT LIABILITIES Trade and other payables 12 860,014 991,126 Other liabilities 13 92,353 75,808 Employee benefits 14 386,410 620,334

TOTAL CURRENT LIABILITIES 1,338,777 1,687,268 NON-CURRENT LIABILITIES Employee benefits 14 39,382 56,700

TOTAL NON-CURRENT LIABILITIES 39,382 56,700 TOTAL LIABILITIES 1,378,159 1,743,968 NET ASSETS 18,780,884 18,647,507

EQUITY Retained earnings 18,780,884 18,647,507

TOTAL EQUITY 18,780,884 18,647,507

The accompanying notes form part of these financial statements. 8 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 $ $

Retained earnings at the beginning of the year 18,647,508 18,311,100 Profit for the year 133,376 336,407 Retained earnings at the end of the year 18,780,884 18,647,507

The accompanying notes form part of these financial statements. 9 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers 9,884,808 9,616,460 Payments to suppliers and employees (8,708,951) (7,595,006) Interest and dividends received 81,989 92,216

Net cash provided by operating activities 1,257,846 2,113,670

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of plant and equipment 256,864 116,080 Purchase of property, plant and equipment (2,760,114) (1,688,923)

Net cash used in investing activities (2,503,250) (1,572,843)

Net increase/(decrease) in cash and cash equivalents held (1,245,404) 540,827 Cash and cash equivalents at beginning of year 4,501,176 3,960,349

Cash and cash equivalents at end of financial year 6 3,255,772 4,501,176

The accompanying notes form part of these financial statements. 10 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

The financial report covers Corowa RSL Club Limited as an individual entity. Corowa RSL Club Limited is a not-for- profit Company Limited by Guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of Corowa RSL Club Limited is Australian dollars ($AUD) and all amounts have been rounded to the nearest dollar.

The financial report was authorised for issue by the Board of Directors on 24 April 2019. 1 BASIS OF PREPARATION

The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements, Corporations Act 2001 and Corporations Regulation 2001.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of financial assets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presented below and are consistent with prior reporting periods unless otherwise stated. 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Income Tax

During the financial year, the Company qualified as a base rate entity and became eligible for the lower tax rate of 27.5% (2017: 30%).

The mutuality principle has been applied to the calculation of the Company's income tax. The Company has estimated that the assessable portion of mutual income represented by results of trading attributable to non- members of the Company is 13.42% (2017: 14.70%).

Current tax is the amount of income taxes payable (recoverable) in respect of the taxable profit (loss) for the year and is measured at the amount expected to be paid to (recovered from) the taxation authorities, using the tax rates and laws that have been enacted or substantively enacted by the end of the reporting period. Current tax liabilities (assets) are measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

(b) Leases

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term.

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

Bar and kitchen sales

Revenue derived through bar and kitchen sales is recognised on transfer of goods to the patron as this is deemed to be the point in time when all the risks and rewards associated with the goods are transferred and there is no longer any ownership or effective control over the inventory.

11 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Gaming machine takings

Gaming machine takings are recognised as revenue when received and shown in the statement of profit or loss and other comprehensive income as a net amount, after tax.

Membership subscriptions

Membership subscriptions represent the amounts received from the Company's members in accordance with the Rules of the Company and are recognised in the year to which they relate on a straight-line basis.

Membership subscriptions received in advance incur an obligation for the Company to honour the terms and conditions of the membership for the term of the membership. This represents a constructive obligation to provide all benefits associated with the membership to the members. As such memberships in advance are treated as reciprocal transactions and are recognised on the statement of financial position as a liability until the anniversary date of the membership. Memberships are then treated as revenue through profit or loss.

Rental income

Rental property revenue is recognised on a straight-line basis over a period of the lease term so as to reflect a constant periodic rate of return on the net investment.

Interest revenue

Interest is recognised using the effective interest method.

Dividend revenue

Dividends are recognised when the Company’s right to receive payment is established.

Gain on disposal of non-current assets

When a non-current asset is disposed, the gain or loss is calculated by comparing proceeds received with its carrying amount and is taken to profit or loss.

Other income

Other income is recognised on an accruals basis when the Company is entitled to it.

(d) Borrowing costs

Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset.

All other borrowing costs are recognised as an expense in the period in which they are incurred.

(e) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST.

Cash flows in the statement of cash flows are included on an inclusive basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

12 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(f) Inventories

Inventories for bar and kitchen stock are measured at the lower of cost and net realisable value. Cost of inventory is determined using the individual item basis which is inclusive of freight and delivery charges and is net of any rebates and discounts received.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the reporting date and inventory is written off in the statement of profit or loss and other comprehensive income when deemed to be damaged or obsolete.

(g) Property, plant and equipment

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

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value.

Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Company, commencing when the asset is ready for use.

The depreciation rates used for each class of depreciable asset are shown below: Fixed asset class Depreciation rate Buildings 2.5% Buildings Leased to External Parties 10% Plant and Equipment 10% - 33% Car Park 2.5%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

(h) Classification of buildings

The rental properties owned and operated by the Company have been separately classified as buildings leased to external parties and included as part of property, plant and equipment. Whilst these buildings are not occupied by the Company and only earn rental income, the Company has used the exemption open to not-for-profit entities under AASB 140 Investment Properties to classify the buildings as buildings leased to external parties.

The Directors believe that the buildings have a wider social purpose in that the Company does provide some benefit to the financially disadvantaged.

(i) Financial instruments

Financial instruments are recognised initially using trade date accounting, i.e. on the date that the Company becomes party to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

13 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(i) Financial instruments

Financial Assets

The Company's financial assets are divided into the following categories which are described in detail below:

x trade and other receivables; and

x financial assets at fair value through profit or loss.

Financial assets are assigned to the categories on initial recognition, depending on the characteristics of the instrument and its purpose. A financial instrument’s category is relevant to the way it is measured and whether any resulting income and expenses are recognised in profit or loss or in other comprehensive income.

Trade and other receivables

Trade and other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual monetary assets.

After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Any change in their value is recognised in profit or loss.

In some circumstances, the Company renegotiates repayment terms with customers which may lead to changes in the timing of the payments, the Company does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets:

x acquired principally for the purpose of selling in the near future;

x designated by the entity to be carried at fair value through profit or loss upon initial recognition; or

x which are derivatives not qualifying for hedge accounting.

The Company has some derivatives which are designated as financial assets at fair value through profit or loss.

Assets included within this category are carried in the statement of financial position at fair value with changes in fair value recognised in profit or loss.

Any gain or loss arising from derivative financial instruments is based on changes in fair value, which is determined by direct reference to active market transactions or using a valuation technique where no active market exists.

Financial liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities depending on the purpose for which the liability was acquired.

The Company‘s financial liabilities include borrowings and trade and other payables which are measured at amortised cost using the effective interest rate method.

14 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(i) Financial instruments

Impairment of financial assets

At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired.

If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate.

Impairment on trade and other receivables is reduced through the use of an allowance accounts, all other impairment losses on financial assets at amortised cost are taken directly to the asset. Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.

(j) Impairment of non-financial assets

At the end of each reporting period the Company determines whether there is evidence of an impairment indicator for non-financial assets. Where an indicator exists and regardless for indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash- generating unit (CGU) is estimated. The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss. Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss.

(k) Intangibles

Gaming machine licences

Under the Gaming Machine Act 2001, a tradeable asset titled gaming machine entitlement was created. Gaming Machine entitlements are able to be sold to other registered clubs within the state of New South Wales (NSW) provided certain statutory requirements are met. The Act came into effect on 2 April 2001.

Two hundred and sixteen (216) gaming machine entitlements were purchased prior to 2001 and have not been recognised as assets of the Company at year end.

(l) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, cash at bank and short-term investments which are readily convertible to known amounts of cash and are subject to an insignificant risk of change in value.

(m) Employee benefits

A liability is made for the Company's employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements.

15 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(n) Provisions

Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured at the present value of management's best estimate of the outflow required to settle the obligation at the end of the reporting period. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the unwinding of the discount is taken to finance costs in the statement of profit or loss and other comprehensive income.

Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(o) New Accounting Standards and Interpretations

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Company has decided not to early adopt these Standards. The following table summarises those future requirements, and their impact on the Company where the standard is relevant:

Standard Name Effective date Requirements Impact AASB 15 - Revenue from 1 January 2019 The Company will be required Minimal as the Company Contracts with Customers to recognise any membership already recognises this subscriptions received in source of revenue on this advance over the time in basis. which the membership period relates to. AASB 16 - Leases 1 January 2019 The Company will be required The right-of-use asset to recognise any current or and lease liability future operating leases as required to be 'right-of-use assets' and 'lease recognised would have liabilities' in its statement of a minimal impact on the financial position. Company's future reporting position and performance. AASB 1058 - Income of Not- 1 January 2019 Under AASB 1058, the Minimal impact due to for-Profit Entities Company must recognise their immaterial nature. transactions where consideration to acquire an asset is significantly less than fair value in accordance with AASB 116. The Company may also elect to apply an accounting policy requiring the recognition of volunteer services as revenue and its expenditure through profit and loss.

16 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

3 CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The Directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below. Key estimates - impairment of property, plant and equipment

The Company assesses impairment at the end of each reporting period by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions.

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units, based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about future operating results and the determination of a suitable discount rate. Key estimates - receivables

The receivables at reporting date have been reviewed to determine whether there is any objective evidence that any of the receivables are impaired. An impairment provision is included for any receivable where the entire balance is not considered collectible. The impairment provision is based on the best information at the reporting date. Key estimates - inventory

Each item on inventory is reviewed on an annual basis to determine whether it is being carried at higher than its net realisable value. During the year, management have written down inventory based on best estimate of the net realisable value, although until the time that inventory is sold this is an estimate.

17 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 $ $

4 REVENUE

ATM commission 63,687 62,699 Bar sales 1,456,743 1,423,972 Catering income 1,406 5,226 Competition fees 36,479 35,147 Dividends received 27,872 26,117 Donations and sponsorships received 10,069 5,295 Employment subsidies 1,000 32,866 GST rebate 17,180 17,180 Interest received 54,534 66,099 Keno commission 76,277 62,919 Kitchen income 2,013,576 1,911,686 Membership subscriptions 72,161 78,051 Other income 2,430 1,716 Gaming machine revenue - net of tax 5,883,879 5,816,824 Profit on disposal of assets 57,252 - Raffle and bingo revenue 137,240 130,384 Recycling commission 10,003 - Rental income 12,760 21,620 Room hire 5,593 5,991 TAB commission 20,914 16,879 Vending machine income 14,765 4,451

9,975,820 9,725,122

18 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 $ $

5 INCOME TAX EXPENSE

Mutuality principle

Sales revenue Mutual income 9,642,870 9,353,421 Fully taxable income 260,789 293,650 Non-taxable (exempt income) 72,161 78,051

9,975,820 9,725,122

Taxable income Non-member's income 1,293,876 1,375,149 Fully taxable income 260,789 293,650

1,554,665 1,668,799

Allowable expenses Non-member's expenses 1,258,874 1,319,445 Fully deductible expenses 373,274 361,543

1,632,148 1,680,988

Taxable loss (77,483) (12,189)

19 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 $ $

6 CASH AND CASH EQUIVALENTS

CURRENT Cash at bank 548,166 1,330,595 Cash on hand 295,601 251,450 Short-term deposits 2,412,005 2,919,131

3,255,772 4,501,176

7 TRADE AND OTHER RECEIVABLES

CURRENT Trade receivables 37,091 26,222 Income tax refundable 23,780 12,474

60,871 38,696

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.

8 INVENTORIES

CURRENT Stock on hand - at cost 84,105 90,883

9 OTHER ASSETS

CURRENT Prepayments 198,203 119,711 Accrued income 14,926 -

213,129 119,711

20 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 $ $

10 FINANCIAL ASSETS

NON-CURRENT Shares in listed companies - at fair value 438,823 466,901

11 PROPERTY, PLANT AND EQUIPMENT

NON-CURRENT Freehold land At cost 7,750 7,750

Buildings At cost 18,582,206 17,670,764 Accumulated depreciation (8,221,928) (7,576,845)

10,360,278 10,093,919 Capital works in progress At cost 648,383 -

Buildings leased to external parties At cost 415,640 414,096 Accumulated depreciation (130,346) (121,602)

285,294 292,494 Plant and equipment At cost 10,145,999 9,778,335 Accumulated depreciation (6,011,318) (5,674,562)

4,134,681 4,103,773 Car park At cost 824,335 817,900 Accumulated depreciation (154,378) (141,728)

669,957 676,172 Total property, plant and equipment 16,106,343 15,174,108

21 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

11 PROPERTY, PLANT AND EQUIPMENT

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Buildings Capital Leased to Works in External Plant and Land Buildings Progress Parties Equipment Car Park Total $ $ $ $ $ $ $

Year ended 31 December 2018 Balance at the beginning of year 7,750 10,093,919 - 292,494 4,103,773 676,172 15,174,108 Additions - - 1,566,199 1,543 1,185,934 6,438 2,760,114 Disposals - - - - (199,612) - (199,612) Transfers - 911,451 (917,816) - 6,365 - - Depreciation expense - (645,092) - (8,743) (961,779) (12,653) (1,628,267)

Balance at the end of the year 7,750 10,360,278 648,383 285,294 4,134,681 669,957 16,106,343

22 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

2018 2017 $ $

12 TRADE AND OTHER PAYABLES

CURRENT Accrued expenses 280,262 249,926 Trade payables 579,752 741,200

860,014 991,126

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

13 OTHER LIABILITIES

CURRENT Membership subscriptions received in advance 67,353 75,808 Deposit from sale of gaming machine entitlements 25,000 -

92,353 75,808

14 EMPLOYEE BENEFITS

CURRENT Annual leave 186,056 352,309 Long service leave 197,726 260,459 Sick leave 2,628 7,566

386,410 620,334

NON-CURRENT Long service leave 39,382 56,700

23 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

15 CAPITAL AND LEASING COMMITMENTS

The Directors signed an agreement with Smart Commercial Solar in June 2018 for the installation of a 300kw solar car park shade structure. The total cRVW RI the structure is $1,074,000 (GST exclusive). As at 31 December 2018, the Company has made two (2) instalments amounting to $483,300 with a remaining capital commitment of $590,700. The Directors expect the structure to be completed by August 2019.

In the opinion of the Directors, the Company did not have any other material capital or leasing commitments at 31 December 2018 (31 December 2017: None).

16 CONTINGENCIES

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2018 (31 December 2017: None).

17 EVENTS OCCURRING AFTER THE REPORTING DATE

The financial report was authorised for issue on 24 April 2019 by the Board of Directors.

No other matters or circumstances have arisen since the end of the financial year which 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.

18 KEY MANAGEMENT PERSONNEL REMUNERATION

The total remuneration paid to key management personnel of the Company during the year was $470,573 (2017: $574,570). Total remuneration consists of wages and salaries paid to key management as well as honorariums, allowances and gifts paid to the Directors during the year.

For details of other transactions with key management personnel, refer to Note 19: Related Party Transactions.

24 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

19 RELATED PARTY TRANSACTIONS

Key management personnel

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any Director (whether executive or otherwise) of that entity are considered key management personnel. Key management personnel of the Company during the year were as follows:

x Philip Scott (President)

x Jennifer Delany (Vice President)

x Francis Gee (Vice President)

x Christopher Thomas (Treasurer)

x Jennifer Hopgood (Director)

x Elin Collins (Director, appointed: 16 May 2018)

x John Brennan (Treasurer, resigned: 28 November 2018)

x Ronald Welfare (Director, resigned: 18 April 2018)

x Peter Norris (General Manager)

x Chris Rebbechi (Finance Manager, appointed: 27 August 2018)

x Adam Richardson (Finance Manager, resigned: 3 July 2018)

x Christine Matthews (Functions Manager) Other related parties

Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members. Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

The following transactions occurred with related parties during the year:

Balance outstanding Owed to Owed by the the Sales Payments Wages Company Company $ $ $ $ $

Other related parties - 47,882 16,751 - -

- 47,882 16,751 - -

25 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

20 STATUTORY INFORMATION

The registered office and principal place of business of the Company is: Corowa RSL Club Limited 30 Betterment Parade COROWA NSW 2646

26 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 DIRECTORS' DECLARATION FOR THE YEAR ENDED 31 DECEMBER 2018

The Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 7 to 26, are in accordance with the Corporations Act 2001 and:

a. comply with the Australian Accounting Standards - Reduced Disclosure Requirements and Corporations Regulation 2001; and

b. give a true and fair view of the Company's financial position as at 31 December 2018 and performance for the year then ended.

2. 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.

This declaration is made in accordance with a resolution of the Board of Directors.

Director ...... Director ...... Philip Desmond Scott Francis Dennis Gee

Dated 24 April 2019

27 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Corowa RSL Club Limited (the Company), which comprises the statement of financial position as at 31 December 2018, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the Directors' declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company's financial position as at 31 December 2018 and of its financial performance for the year then ended; and

(ii) complying with the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with the Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors of the Company, would be in the same terms if given to the Directors as at the time of this auditor's report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

The Directors are responsible for the other information. The other information obtained at the date of this auditor's report is included in the annual report, (but does not include the financial report and our auditor’s report thereon). Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

28 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Responsibilities of Directors for the Financial Report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: x Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. x Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. x Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. x Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

29 COROWA RSL CLUB LIMITED ABN: 28 001 066 628 INDEPENDENT AUDITOR'S REPORT FOR THE YEAR ENDED 31 DECEMBER 2018

Auditor's Responsibilities for the Audit of the Financial Report (Continued) x Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

National Audits Group Pty Ltd Authorised Audit Company

Steven J Watson Managing Director

Dated 24 April 2019

Wagga Wagga