ANNUAL REPORT & FINANCIAL STATEMENTS
F or the financial year ending 30th June 2019
For the financial year ending 30th June 2019 CMC for Sport
CMC for Community
CMC the Heart of Maitland
II Club Maitland City | Annual Report Club Maitland City | Annual Report III Notice of Annual General Meeting
Notice is hereby given that the (and those other persons identified - The Board has resolved to Annual General Meeting of Maitland in this Resolution): EXPLANATORY NOTES EXPLANATORY NOTES approve the nomination of Mr City Bowls, Sports & Recreation Ross Richard Chapman for (a) reasonable meals and - Pursuant to the requirements - Pursuant to the requirements Club Ltd ABN 64 000 912 005 (“the election to Life membership refreshments for each Director in of the Registered Clubs Act of the Registered Clubs Act Club”) will be held on Sunday, 27 of the Club under Rule 23 of conjunction with each Board or 1976 (Registered Clubs Act) the Club is required to have October 2019 at 10:00am at the the Club’s Constitution in Committee meeting; the Club is required at each the honoraria for Directors Club’s premises at 14 Arthur Street, recognition of his long and Annual General Meeting to approved by the members at Rutherford NSW 2320. (b) reasonable costs or expenses meritorious service to the have approved by ordinary the Annual General Meeting. in relation to the professional Club. resolution, the benefits to The purpose of this resolution development and education of BUSINESS be provided to the Directors is to comply with the - To be passed the Special Directors including: 1. Apologies and a Minutes Silence for of the Club. The purpose of requirements of the Registered Resolution must receive votes Deceased Members. (i) attending meetings of this resolution is to comply Clubs Act. in its favour from not less than associations of which the Club with the requirements of the three quarters (75%) of those - To be passed, Resolution 2 2. To confirm the Minutes of the is a member or Directors of the Registered Clubs Act. members who being eligible must receive a simple majority previous Annual General Meeting. Club are members; to do so vote in person on - To be passed, Resolution 1 of votes in its favour from the Special Resolution at the 3. To receive and consider the Report of (ii) attending other registered must receive a simple majority those members present at meeting. Directors. clubs or gaming venues for of votes in its favour from the meeting who are eligible 4. To receive and consider the Financial the purposes of observing those members present at to vote and who vote on the - Only Life members, financial Report. their facilities and methods of the meeting who are eligible Resolution. Voting members and financial operation; to vote and who vote on the Premium Social members - Life Members, financial 5. To receive and consider the Auditors Resolution. are eligible to vote on the (iii) attending conferences and Voting Members and financial Report. Resolution. training sessions in relation to - Life Members, financial Premium Social Members 6. To receive the report of the Returning their roles and responsibilities Voting Members and financial are entitled to vote on the - Under the Registered Clubs Officer regarding the Election of under the Registered Clubs Act Premium Social Members Resolution. Act: Directors. 1976, the Corporations Act 2001 are entitled to vote on the - The Board recommends (a) members who are employees and any other relevant legislation; Resolution. 7. To consideration recommendations Resolution 2 to the meeting. of the Club are not entitled to from the Board of Directors for Life (c) reasonable costs or expenses - The Board recommends vote; and membership in accordance with of attending functions whilst Resolution 1 to the meeting. (b) proxy voting is prohibited. Article 23 of the Club constitution, if representing the Club with RESOLUTION 3 – applicable (75% majority required). partners where appropriate; SPECIAL RESOLUTION - The Board of the Club RESOLUTION 2 - recommends the Resolution to 8. To consider resolutions as listed. (d) reasonable costs or expenses Life Membership members. 9. Any other business of which proper of travelling by either private ORDINARY RESOLUTION or public transport to and To consider, and if thought fit, to notice has been given. To consider and if thought fit, to pass from Directors’ or other duly pass the following Resolution to the following ordinary resolution: By direction of the Board constituted meetings, held at elect Mr Ross Richard Chapman RESOLUTION 1 - places other than the Club; “That pursuant to the Registered (Membership Number 91) as a Life Clubs Act 1976, the members Member of the Club: (e) reasonable costs or expenses ORDINARY RESOLUTION hereby approve and agree to the in relation to the provision (i) “That Mr Ross Richard members of the Board, during To consider, and if thought fit, to pass of uniforms and other Club Chapman (Member Number 91) the period preceding the next the following ordinary resolution: monogrammed apparel for is elected as a Life member of the Ian Martin Annual General Meeting, receiving the use of each Director when Club in recognition of his long and “That pursuant to the Registered honoraria to the positions named Chief Executive Officer / Secretary representing the Club; and meritorious service.” Clubs Act 1976, the members and for the sums referred to below, hereby approve and agree to the (f) the provision of a total of four (4) in respect of services rendered to members of the Board, during the reserved parking spaces at the the Club and the members further EXPLANATORY NOTES period preceding the next Annual Club for the Director’s use when acknowledge that the honoraria - The nomination of Mr General Meeting, receiving the attending the Club to carry out are not available to members Ross Richard Chapman following benefits having a total their duties. generally but only to those (Member Number 91) for Life value not exceeding $25,000 and members who are Directors of the Membership has been made the members further acknowledge Club: that the benefits outlined in in writing by members Mr Ray paragraphs (a) to (f) are not (i) $5,500 to the President; Shaw (Member Number 1193) available to members generally, (ii) $4,000 to the Vice President; and Mr Peter Dymond (Member Number 386) in accordance but only to the Directors of the Club (iii) $4,500 to the Treasurer; and with the Constitution of the (iv) $4,000 to each other Director”. Club.
IV Club Maitland City | Annual Report Club Maitland City | Annual Report V 2019 Donations 2019 “SPOTLIGHT” Buy a Bale-Rural Aid
SUMMARY OF DONATION RECIPIENTS In January 2018 a number of key With the farmers cause going viral staff and directors with farming on social media, your club was BowlsNSW and country backgrounds brought fielding media and industry calls significant concern for farmers for interviews and advice. Clubs Mindaribba Warriors in the Hunter. The drought was jumped on the cause on mass, Camp Quality biting hard and they were doing from then on for a period of a it tremendously tough. Meleah few months, the benefits both in Probus McInnes, Hayley Eveleigh and finance, food and advice we could Carries Place Rotary Mens Health Zone 6BA Rotary Newcastle (magic show) Hunter Life Education Rural Aid Immune Deficiency Foundation Rutherford Neighbourhood Watch Maitland Camera Club Rutherford Technology High Maitland Hockey Association director David Button got together pass onto Buy a Bale and Rural to propose a large hay drop into Aid helped with awareness of the Salvation Red Shield Appeal the Upper Hunter as soon as the drought, and most importantly Maitland Netball Masters hay could have been sourced. This to help out people. CMC efforts was the problem, sourcing hay in alone collected many many pallets Variety Special Children’s the middle of a drought isnt/wasn’t of goods that were distributed, Christmas Party easy. and today staff of Buy a Bale and Maitland United Rugby League Rural Aid stay at our motels free Numerous months went by, and of charge to continue the efforts to Westpac Helicopter Rescue then in July 2018 we received help our struggling farmers. This notice that Hay had been sourced. Worlds Greatest Shave was all started through the foresight Meleah & Hayley (our social media of Meleah McInnes, Hayley Youth off the Streets experts) jumped into action and put Everleigh and David Button. Maitland Family Support the call out to the community for further donations, and WOW! Our Today CMC is still involved with Maitland Neighbourhood community responded. Buy a Bale and Rural Aid, the Centre drought isnt over, infact its worse Significant donations of water, then last year. We will be starting food, and all types of house hold a new fundraising drive again very items resulted in an initial trailer VALUES soon. of goods heading to Gundy with a ‐ Honesty & Integrity semi trailer of Hay. Amazingly the response from the community had - Unique & Diverse these goods donated and loaded in - Passion for Service 12 hours. ‐ Fun & Nurturing Then Meleah issued a challenge ‐ Respect & Support out via social media to all the clubs in the industry. With some key - Community Centric industry contacts, this exploded. These staff had just started one of the biggest drives for farmers ever seen.
VI Club Maitland City | Annual Report Club Maitland City | Annual Report VII 2019 Presidents Report 2019 Treasurers201 9 ReportTREASURERS REPORT
This is the second year in a row we have had a two speed year with the second Another year is done and dusted My many thanks to all our Board This is the secondhalf year of the in year a rowactually we returning have had a negative a two audited speed result year as with shown the by the table with our Annual General Meeting members for the effort and second half of thebelow: year actually returning a negative audited result as shown upon us again. dedication that they have put by the table below: in over the past twelve months As usual our focus in 18/19 is to Values = $’000’s July/Dec. Jan./June 2019 2018 without these efforts we would reinvest to the club and community Trading Income $7,246 $6,057 $13,303 $13,391 not be in our present position. whilst delivering a surplus profit to Operational Expenditure $6,647 $6,100 $12,747 $12,516 May I also thank Ian, Mel and the Audited Result $599 ($44) $555 $875 member for continued investment. management team as well as all Some of the investment this staff including greens and motels. Depreciation $1,041 $970 $2,012 $2,005 year is to further future proof the Interest $198 $153 $352 $383 Your efforts are sometimes under business with the purchase through Abnormal Items ($15) ($2) ($17) $24 difficult conditions, but we know you liquidation of gaming machine Sub-total $1,224 $1,122 $2,346 $2,412 always put the member’s interests entitlements from Maitland Leagues first. Special thanks to Greg Darcy EBITDA $1,854 $1,082 $2,936 $3,239 Club. for the tireless efforts over the past TheThe table also also compares compares this year’s this resultsyear’s to that oftrading 2018 showing conditions a decrease and, in in the fact audited it result Shortly you will see a new twelve months. Our employees are resultsof $285,000 to that with ofthe 2018 reasons showing for the drop a plainly evidenthas alsofrom therolled details over in the into table. the Pub refurbishment occur to the gaming the backbone of our operations decrease in the audited result of & hospitality industry generally, floor. The enhancements should be and there is no doubt that their The main cause of the decrease in the second half was the slide in our income base. Income in the $285,000 with the reasons for the with many high profile restaurants produced with minimal disruption dedication to delivering exceptional first half of the year was running at around $39,000 per day but dropped to $33,000 in the second drop plainly evident from the details closing their doors permanently and will be a welcome refresh to the customer service has contributed half. Fortunately, we were able to reduce our expenses per day from $36,000 to $33,500, but this in the table. over the past 12 months. There area. substantially to achieving our was not enough to completely offset the drop in income. will always be challenges in this positive trading result. The main cause of the decrease Our Quarry Bar & Grill Restaurant One of the reasons for the drop off in income wasindustry due to ourand Motels. our survival Their combined depends income in the second half was the slide in has been kicking goals for your I would like to thank you the decreased $175,000 between the two halves withon gamingthe support revenues of followingyou our beingmembers down by our$600,000. income There base. has always Income been in a the difference between the trading conditions of the two halves of club. I ask members and your guest members of the club for supporting and with that support your Board firstthe year half, butof thethis yearyear the was change running seems to have been more dramatic. Some of the reasons are to utilise the venue. Club Maitland City during the year. and Management Team will atobvious: around $39,000 per day but Our members are our bread and two elections (State & Federal) in early 2019 continue to pour in a 110% effort so It’s great to see the Women’s and dropped to $33,000 in the second butter, and although the business housing prices plummeting throughout late ’18that & early Club ’19, Maitland and City remains the Men’s Bowlers continue to function half. Fortunately, we were able to must evolve to stay relevant in a a general malaise in the economy. “Club of Choice” for the greater part at a high competitive level and reduce our expenses per day from changing market, we appreciate of this LGA. achieving the desired results like $36,000Naturally, tothe $33,500, Board are notbut entirely this was happy with the result however, without the competence of our you feedback all the time. We will past years and I feel that next year notManagement enough Teamto completely and your Board, offset this the result couldAs have usual been I will much finish worse. of CMC with is thankingnot the only only ever try to make your Club will be another great year for Club dropClub thatin income. has experienced these difficult trading conditionsMel and and, Narelle in fact as it has they also make rolled myover into better. the Pub & hospitality industry generally, with many high profile restaurants closing their doors Maitland City. My thanks must go role as Treasurer so easy through Onepermanently of the reasons over the pastfor the 12 months. drop off There will always be challenges in this industry and our to the pennant selectors it is not an Thank you again for your their efficiency ensuring your insurvival income depends was due on the to supportour Motels. of you our members and with that support your Board and easy job especially because of the assistance during the year and I Management Team will continue to pour in a 110%Board effort &so Management that Club Maitland Team City remainshave the Their combined income decreased critics out there in bowlers land. But believe that this club is heading “Club of Choice” for the greater part of this LGA. the most up to date information $175,000 between the two halves as we say if you’re not happy put in the right direct and will only get possible to enable us to steer your withAs usual gaming I will finishrevenues of with following thanking Mel and Narelle as they make my role as Treasurer so easy your hand up to help out. I would better. Club in the right direction. To them beingthrough down their by efficiency $600,000. ensuring There your Board & Management Team have the most up to date also like to thank all our volunteer and the rest of the Management hasinformation always possible been ato differenceenable us to steer your Club in the right direction. To them and the rest of workers that spend so much time Team Ian, Hayley, DJ and Brent, between the trading conditions of as our unsung heroes for all the Henry Meskauskas I thank you for your assistance the two halves of the year, but this work they perform throughout the this past year and I know you will President year the change seems to have year at the club. continue to do so for many years to been more dramatic. Some of201 the9 Treasurer’s Report come. reasons are obvious: I cannot omit thanking our Staff, two elections (State & Federal) as Club Maitland City would not in early 2019 housing prices be the venue it is today without plummeting throughout late their relentless effort in constantly ’18 & early ’19, and a general providing you, the members, the malaise in the economy. friendly service you have come to Naturally, the Board are not entirely expect. Finally I wish to thank my happy with the result however, fellow Board members for their without the competence of our untiring efforts in guaranteeing Management Team and your Board, CMC is what it is today and will be this result could have been much in the future. worse. CMC is not the only Club Bob Bullen - Treasurer that has experienced these difficult
VIII Club Maitland City | Annual Report Club Maitland City | Annual Report IX 2019 Chief Executive Officer’s Report
Members, first of all my business is working hard against Our Motels are also being reviewed Runner Up in the State Champion ensure we are competitive and condolences go to those friends shrinking margins, and as such with a test room for design and of Champion singles and Rowan functional. Thank you for your efforts and family of members who have my team continues to embark functionality now all but completed. Brassey who back up success 2018 and dedication. If you haven’t been passed away during the year. We on internal efficiencies to reduce In the coming time the plan is the with winner the 2019 Australian to visit Pauline and Rob with a are a Club family and these losses overheads. Areas of note include, duplicate this design into other Open Pairs. Fantastic effort and restaurant booking then I suggest always hit hard. Maitland City Motel revenue down rooms to lift the quality of our congratulations to both of you. you do. The food is excellent under some $130,000, Club Maitland City accommodation. In the meantime resident Chef Dean. Of course I This year we lost life member Ken The year, like most has been an revenue up slightly, but increases in significant work on detailed cleans, cannot thank enough those who Guy who served our club and the extremely busy one advancing trading and non‐trading expenses comfort and efficiency are all make the business function on a wider community in extraordinary our interests for the benefits of of over $250,000 compared to underway for initial improvements. daily basis, frontline staff including, ways. Ken was formally awarded members and guests. I cannot 2018. Mostly increased overheads administration, bar & gaming an OAM in the Australia Day CMC continues to advance our thank my management enough for causing shrinking margins, which staff, green keepers, kitchen staff, honours for 2019 for service to interests in Sports and Community their dedication, drive and honesty. as mentioned is being addressed. housekeeping thank you for the year. lawn bowls, although informed of relationships. Led by the Sports and Meleah, Dj, Brent, Alex thank you. the award prior to his passing late During the year Maitland Sponsorship Manager Dj Dilworth we Other key staff including Hayley Thank you to my Board of Directors December 2018. We were also District Leagues Club’s (MDLC) now are the largest sponsor of junior (welcome back from maternity for the year led by Henry. I look deeply saddened by the loss of amalgamation was given up. and senior sport in the Maitland leave), all our supervisors who work forward to working together on the Marie Threadgate suddenly this There has been an opinion on LGA with interests in Soccer, AFL, some weird and wonderful hours, exciting plans we are laying out for year. Marie has been a tremendous every corner as to why this was. Rugby League, Netball, Softball, thank you your efforts are what the future. participant in bowls for many years The fact is MDLC ran out of and of course our passion of Bowls. makes us such as cohesive and All the best for the year. and her sudden loss was a shock to money and CMC couldn’t lend Congratulations must be extended successful team, even when the all of us. further funds to MDLC without to all those excelled in bowls this sometimes the value of your efforts the certainty of a building sale year although not as successful in are hard to see. I reported in the 17‐18 annual report Ian Martin ACCM as per the Memorandum Of the teams events as previous we that the year was in two halves, Robert and Pauline (CMC Understanding (MOU). When the had some outstanding individual CEO the same can be said for the 18‐19 Accommodation Managers) have building did eventually sell, it was achievements. Congratulations financial year. Your club had started now taken over both motels to for an amount $1.2million less than to Shendelle Smith who was the year with some fantastic results, CMC members agreed too. Your including all‐time records in some Directors and Management wouldn’t departments, then uncertainty undermine the trust of the good hit. Uncertainty around elections members of CMC by accepting an (state and federal), interest rates, offer that wasn’t agreed too. low wage growth, the property market and international factors Eventually MDLC was liquidated including the China V USA trade to repay (at least partially) the war which will push into commodity creditors owing. During liquidation prices, North Korea’s instability and CMC did take the opportunity to the South China Sea concerns, purchase additional poker machine all of which weighed heavily on entitlements from MDLC. These consumer and business confidence. entitlements have now been As a result of these and some local transferred to CMC and will add factors, the wider Club industry took further revenue generation ability a significant hit which resulted in into the future as our club continues the excellent monthly results early to get bigger and better. in the financial year turning to some In progress news, CMC will be quite average results from around beginning a refurbishment of the December 2018. gaming floor very shortly. This For the year 2018‐19 we will report area hasn’t had any significant a Net Profit of $555,000 ($874,000 refurbishment for 20+ years. Plans 2018), from a total revenue of will, be posted when available $13.73million ($13.7m 2018). Our which will include an expanded EBITDA Profit for the group was outdoor gaming space, new floor reported at $2.918m or 21.26% coverings and ceiling and general ($3.31m or 24.17% 2018), which aesthetic improvements. ranks in the best in the state. Our
X Club Maitland City | Annual Report Club Maitland City | Annual Report XI 2019 Sports And Sponsorship Manager
Another year has come and gone the achievements in the women’s and Kevin Johns! Adele and Kevin state level as mentioned above. The have at Club Maitland City. When at Club Maitland City and plenty pennant season and I for one look then reached the regional play‐offs men’s was a bit more boring with we host an event we always have to comment on in this year’ bowls forward to seeing them kick on in and finished runners‐up. Well done last years winners defending their numerous people give up their report. 2020. to all the CMC achievements at titles and Paul Cousins winning the time to help out, from setting out Championship level. double double. With Paul winning chairs, to raising flags to emptying Pennants in 2019 was not as 2019 saw the introduction of Senior the Singles 3 years in a row he has bins, without these people our successful as the previous 2 years and President Reserve Triples and We have a few extra bowlers set a new CMC record, never before tournaments don’t run as well as but a few of our sides were only Fours at a state level. Our year attending the Australian Open has some one won the Men’s Major they can and we don’t give visitors a win or 2 away from winning/ started with a bang securing the each year putting CMC on the map Singles 3 years in a row. He backed the experience they deserve when qualifying from a section and then Zone 6 title in both Seniors and on a National Level. None more this performance up in the Pairs they visit our great club. Thanks as anything could have happened President’s fours and runners‐up so than our former New Zealand with the ever reliable Daniel Hooker always to Greg in the bowls office from there. Needless to say we in the Open. Good luck to John Representative Rowan Brassey. defending their title from 2018 (with a and Jon and Rowan on the greens have plenty to build on for 2020 and McMurray, Max Wilton, George Rowan along with partner Sam lot of luck in the semifinal). for their work throughout the year. those preparations will start to begin Niznik and David Button (seniors) Laguzza (Club Charlestown) won the The greens continue to improve from September this year. Numbers as well as Ray Richards, Peter Aus Open Over 60 Men’s pairs for Our tournament calendar has run year on year from where they were wise we did struggle compared to Swain, Kevin Johns and Martin the 2nd successive year. This event very well this year again. The Terry then number 2 green has made big the previous year but we managed Bolton (President’s Reserves) was televised live on SBS and Fox Harmer Pairs is still our main draw steps this year and should be close to keep 6 grades on the park each who will all travel to Ettalong in Sports giving the club some great card and attracted a full field again to perfect in 2020 after another week. Player availability was a September to contest the State exposure. We are extremely proud this year. Congratulations to our renovation. This is backed up by determining factor in results this Championships. After that we had of Rowan and his achievements and very own John Collins and Billy the positive comments from our year with changes required week a runner‐sup in the triples, singles very lucky to have a bowler of his Ahoy from Soldiers Point on their members and visitors who have after week. Pennants is a minimum and champion of champion Pairs. experience playing at our club. victory this year winning all 6 games. played on this green at its worst. of a 10 week commitment and if All players defeated by Nathan The King and Queen was down on The 2019 Club Championships players are unable to commit for Dawson and his teams from Kurri numbers this year after a rival club Thanks again for the support from are well under way with the usual the full time then we cannot expect Kurri. Nathan won all 6 titles in rescheduled it’s event to the same Management and the Board of big events run and won in both the to be as successful, selectors can Zone 6 this year, something that weekend, but the show must go on directors and with this continued Men’s and Women’s Events. We had only do so much, the nominated has never been done and will be and congratulations to Rhonda and support we look forward to another first time winners in the Women’s players are the ones that need to very hard to match. In the women’s Jack Littlewood who are King and successful 12 months at the club. Majors. Shendelle Smith in her debut show up and perform. 2018 was events it was a similar story with Queen of the hunter for 2019, again year at the club has won our Major proof of this with minimal changes plenty of runners‐up finishes. Kerry with 6 wins from 6 games. Singles and Sue O’Brien and Adele and more than half our sides Seers and Jo Blyton navigated DJ Dilworth Sports and Johns have won the pairs. Shendelle My job is made easier through the competing for flags! Players will their way through to the final for Sponsorship Manager went on to come runner‐up at the help of the army of volunteers we need to have a big think about their the 2nd year trying to go back to commitment when nominating for back, not to be this year narrowly 2020. The women were coming going down in the final. Shendelle off the back of 2 very successful Smith in her first year at the club years. We had some new additions got to the singles final, again going who added to the sides and the 3 down. Shendelle then contested grade winners from 2017 and 2018 State Champion of Champions as were stepping up to grade 2 for our women’s Major singles winner. their first crack. The year started Shendelle made her way through poorly off the green with the loss a tricky draw to the final, scalping of some stalwarts of the ladies Australian Legend and current club, none felt more than the loss squad member Karen Murphy in the of Marie Threadgate both with the semi‐final. In the final she came up suddenness of her passing and against a red hot Dawn Hayman, the massive void she left as still another current NSW and Australian one of the best bowlers in our club. player, and unfortunately just went The women battled on as best they down in the final. Well done to could, given the circumstances, Shendelle getting to the state final! Kurri Kurri ran away with the 1 This is our 2nd runnerup finish grade flag, they can borrow it for in this event in recent years with a year, and in the first attempt at Marion Crump getting to the 2016 the 2 grade our women came up final. The women’s district also host just 1 win shy of knocking off East a mixed pairs event. We won this Maitland. We can be very proud of event through the exploits of Adele
XII Club Maitland City | Annual Report Club Maitland City | Annual Report XIII 2019 Flying Bowlers Report 2019 Golf Club Report
In November of 2018 we headed was the first time that any members day. Firstly I would like to thank our input. We are always looking for new friendly staff will guide you to one off to Guyra. A total of 41 members of the public had been allowed major sponsors Club Maitland City members and whilst I am at the helm of our members. There is always We left on Sunday, after breakfast, departed the Club at around about to enter the confines of the farm. and Greg Marron from Harvey this will be my focus which in return a group of members at the club on heading to Uralla Bowling Club 6am. Everything was grown by the use of Norman Electrical Rutherford for helps all of us. Fridays from 5.30pm. for a rest stop. Lunch was had at Horticulture process’s. Everybody their continued support of the Social We headed off to Wingen Hotel Murrurundi Bowling Club, a Chinese Our social golf club has an annual Have A Great Golf Day had to wear sterilised clothing, hats Golf Club that has put us in a strong for breakfast. At about 9am we left meal. trip away every October and our last and shoes before they would allow us financial position to keep golf day Wingen for a rest stop at South trip we ventured south to Rooty Hill to enter. It was certainly interesting We then, after a rest stop at costings to a minimum which in turn Tamworth Bowling Club. After 30 RSL for accommodation two nights James G. Mullen and “unbelievable”, and I’m sure any Singleton bowling Club, we were on entice more memberships to the mins we were on our way to the and on the Saturday a great day of the guys have never seen anything our way home. Another great trip and mother club and increase our social President Bendemeer Hotel for lunch. It was of golf was played at GLENMORE like it. We were advised that they had I’m very proud of the way everyone golf membership. Club Maitland City Gold Club a large Lunch and welcomed by and on the Sunday we played at the plans to put in more glasshouses to acted over the weekend. All were all members. After lunch we left for I would like to acknowledge the elite course of TWIN CREEKS great increase their supply of tomatoes. good ambassadors of Club Maitland Guyra, with a rest stop at Armidale. Board of Directors, Ian Martin CEO weekend was had by all members as City. We had to cut short our visit and and staff of the club for all their beverages, good food and company On Saturday after breakfast at the head over to a “Trout Farm”. Again, it efforts through the past financial year is always part of this annual trip. Club we had a tour of Guyra. We first was interesting and were told that the without doubt is appreciated. ventured to a free Laying chook farm, Regards This year we will be heading out west owners were putting Caravan sites then onto a tour of one of Guyra’s As our social golf club would not to Orange where we will be staying on the farm to encourage people main employment commercial run smoothly without our executive on the golf course at Duntryleague to camp overnight at the farm. This business’s, the “Costa” Tomato farm. Graham Solomons board in: Henry Meskauskas for two nights and playing at Cowra would I’m sure boost the economy of What a great visit where we had our (Secretary/treasurer), Allan Brew on the Saturday and Orange on the the town of Guyra. After issuing the President of Maitland City’s eyes open with the sheer number of (Vice president) and Ken Masterson Sunday. New members are always new shirts for 2018, we headed off Flying Bowlers tomatoes grown and supplied to the and Col Ede (club captains) also welcome just enquire at the reception to the Bowling Club for lunch and a big Supermarket Companies. Aldi, our committee members for their of Club Maitland City and one of the social game of bowls. What a great Woolworths, Coles and IGA. This
XIV Club Maitland City | Annual Report Club Maitland City | Annual Report XV 2019 Boxing Gym Report 2019 Offshore Fishing Club Report
Maitland City Boxing Gym has now Maitland City Offshore Fishing A few of the clubs highlights are This event is held in March every been operating for fifteen years Club has just completed its 45 year listed below. year. thanks to the continued support of operation out of Club Maitland 1. Annual Xmas party attended by 4. All members of the fishing club of Club Maitland City who has City.2019 once again was an approximately 90 members and appreciate the continual support assisted us financially as well as exciting year for the club which family attending. Again this function given by Club Maitland City, allotting us a dedicated area for continues to encourage all those was held and catered for by Club whether it is by donation, use of training. This has ensured the who take part in any form of fishing. Maitland City and proved an facilities. In a report such as this continued success of the Gym as The Clubs commitment to juniors outstanding success. I can’t let the opportunity pass witnessed at our last Boxing night remains strong; however we have without thanking the staff for the held in October 2018. 2. The fishing club continues seen a slight drop in the numbers help they supply to myself and club to operate the beginning of the Again it has been a very busy year of our juniors as many have now members . month seafood raffle on the first for the Boys who have travelled turned 18. The club encourages Wednesday of the month. This The Club looks forward to all over NSW and even ventured these former juniors to continue when combined with badge draw increasing ways we can work into Queensland representing Club their membership with the club. has seen increase numbers. together with the host club. Maitland City. Not only have we The club holds regular organised Another benefit of the seafood travelled far and wide, we have had fishing trips for members and raffle is that it has become a social a lot of success: friends throughout the year. The aspect for the fishing club with Tom Lantry Willem Clarke - NSW Light annual weekly trip to Wooli in June many members combining for a President Middleweight Champion remains one of the clubs major monthly get together and dinner. events. All members including Teale Callagher - NSW 3. Swansea weekend this event juniors of the fishing club are also Welterweight Champion continues to grow and is now social members of Club Maitland known as the Family weekend. Willem & Teale both are currently City. Gold Coast Champions whilst Willem also holds the North Coast Title. Teale Callagher, Blake Stone, Andrew Chenoweth & Jesse Catt all won Hunter Valley Titles whilst Willem was also part of the NSW State of Origin team. The Gym’s next boxing night will be at the Club on 19 October 2019 so come and watch “our Boys” do what they do the best. As always, we cannot express enough appreciation to Club Maitland City for the support they provide us as it ensures our boys continue to enjoy the friendship and camaraderie that can only be gained in a gym environment.
Barry MacDonald The Boys Down-under
XVI Club Maitland City | Annual Report Club Maitland City | Annual Report XVII 2019 Sports Teams Reports
Maitland Pickers well we should have three of our five game. Whilst the girls mix with the this year a great year. Finally, to all hosting each of our activities over the are looking in a good position to Rugby League teams playing semi-final football this boys up to under 12’s we were able the kids that play the great game of last 12 months. These included our ensure a finals berth. year. to field a women’s 14’s team and rugby league! Hopefully they had a regular monthly committee meetings, Club This year we have held a ‘Back women’s 16’s team. Both teams great year and will be back. extraordinary meetings, annual The Maitland Pickers Once again I’d like to thank Ian to the Club’ promotion where we represented the Wallaroos with pride general meeting, registration days, Rugby League Club Martin & his board as well as DJ gave a lucky WRTNC member a and the 16’s are progressing well uniform try-on and collection days, a joined the Club Dilworth and his team for all the help voucher to use within the Club. through the finals series. West Rutherford trivia night, a kids disco in the Ruby Maitland City Group In 2018 as our support and guidance throughout This promotion really helped to Telarah Netball Room, our huge presentation in the Major Sponsor and business partner. the last twelve months as two great Graded senior boys are fairing well get people back to CMC after the Club Diamond Room as well as many clubs, Club Maitland City and the also, 13/1’s, 14/1’s, 14/4’s, 15/2’s rounds on Saturdays, increasing our 2018 was a very successful season committee dinners, after match get Maitland Pickers RLC form a strong all representing the club in the final 2018 saw another attendance substantially (+350%) for the Pickers with First Grade togethers on Saturday afternoons and formable long lasting and very series. 16/2’s experienced a tight great year of and highlighted the fact that we, making the semi-finals for the first and team dinners. successful partnership long into the competition and narrowly missed out partnership between and Club Maitland City are hugely time in five years and finishing only future on the final series due to a for and our great netball club - West Our ladies from the A1 team named supportive of all our members. one win away from being Minor against count back. A solid effort by Rutherford Telarah Netball Club “Club Maitland City” attended Premiers in the competition proper. Yours in Sport We would like to acknowledge the all teams is noted. (WRTNC) and that of Club Maitland the Club as often as they could support and encouragement we have Reserve grade made the semi-finals Frank Lawler City. Facilitated by the continued throughout the 2018 season and As a club we have also engaged received from DJ Dilworth who has finishing 3rd, the Ladies League Tag support of DJ Dilworth and Belinda have been in attendance again President the support of local schools in the been instrumental in creating such a also made the semi-finals for the first McNab, we were able to create an each round during the 2019 season area, to encourage not only rugby wonderful base for WRTNC. He is time in the clubs history. inclusive place for our more than 350 continuing to give back to the Club league but an active lifestyle for kids always available for the numerous members and their families to feel that supports them so generously. Our young first graders of the future to participate in sport. The NRL questions and answers all year they belong. The incredible support for this team our Under 19s team won there 2018 development officers assisted us round as well as ensuring he attends has enabled WRTNC to ensure we season in great style defeating minor in this process visiting schools and Our partnership with Club Maitland our functions and games where have increased interest in the A1 premiers Wests Newcastle in the distributing Wallaroo flyers to all City enabled us to continue to grow possible. Thank you DJ. competition right here in Maitland, Grand Final, many of these boys primary schools in the area. our memberships, increase the and that we are continuing to Also, a massive shout out to the have moved onto higher honors in community spirit within our Club NEW Premiership wining Under 19s After the success of 2018, we inspire younger players to attain the CMC Board for coming and watching 2019, proving what a great breeding and ensure that our prices for our WEST MAITLAND JUNIOR RUGBY LEAGUE FOOTBALL CLUB INCORPRATED - for 2018 beyond to be used. ran our Academy Program again heights of A1 competition, as well as our girls and cheering them on and ground Maitland is for Rugby League members were kept to a minimum. to assist the kids and coaches in attracting and retaining some of our supporting our club. We hope to see talent. DJ was instrumental in assisting our
JUNIOR JUNIOR JUNIOR developing further skills. We would best players. more of you at the courts!
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A A A B B B At the endL of 2018 we lost L over 500 L like to thank Matt Lantry and the Y Y Y Wallaroos T T T I I I
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Rugby League
with the retirement of our captain the club. We have also invested participation at West proud to say that our apparel now on advancing in the Preliminary with Club Maitland City well into coach Luke F.C. DornINC. & big front Frower.C. INC. F.C. INC. heavily this year, in coach, support Maitland Wallaroos shows the Club Maitland City logo in Final and finishing in 3rd spot for the future. Thank you for all your Dane TilseTRAD IasTIONA Lwell of the departureMODERN staff and first aider development and is at an all-time high. the most prominent positions on all the season. In 2019, they are support. of the Newcastle Rugby League and education through various courses. Our primary objective is always to garments and equipment. sitting in second spot, with two more Maitland Pickers playerClub Colour sof the year Club Colours/integrated Our club would like to thank parents provide a safe and fun environment rounds to play before finals. With an Adam Clydsdale, a massive hole to and friends that volunteered to Club Maitland City were generous in for any young person, irrespective adjusted line-up this season, they fill. But we welcomed the returns attend. of ability or background, to learn the of former Maitland Juniors back to game of Rugby League and play the On behalf of the committee, I would club in Sam Anderson (Penrith & Q game we love. like to thank Club Maitland City for Cup) Marco Delapena (Q Cup) Peter their continued support, without their Cronin (Kurri) Jayden Butterfield In 2019, we had 350 players help club would not be where it is (Knights) as well as exciting registered across all age groups today. youngster Greg Morris from East ranging from Under 6’s to 16’s(Mini’s, Maitland Griffins just to name a few. Mod’s and International). This is up from 220 players in 2015 At the time of writing this report the 2019 season is also on track to be The strength of our Club is now a successful season for the Club recognised as one of strongest in Maitland City Maitland Pickers. With the district with numbers expected to three competition games to go First grow, with the bulk of players coming Grade are currently sitting third on from Abergasslyn, Rutherford, the table, Open Grade are 4th and Telarah and Maitland. I would also like to acknowledge the the Ladies League Tag are sitting Another exciting aspect to our game executive team, general committee 5th in there competition, so all going is the continued growth in the girls members and volunteers that made
XVIII Club Maitland City | Annual Report Club Maitland City | Annual Report XIX MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005
FINANCIAL REPORT MAITLAND CITY BOWLS, SPORTS & FOR THE YEAR ENDED 30 JUNE 2019 RECREATION CLUB LIMITED Financial Statements Directors’ Report 1
A.C.N. 000 912 005 Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 4
Statement of Profit or Loss and Other Comprehensive Income 5
Statement of Financial Position 6
FINANCIAL REPORT Statement of Changes in Equity 7 FOR THE YEAR ENDED 30 JUNE 2019 Statement of Cash Flows 8 Notes to the Financial Statements 9
Directors’ Declaration 23
Independent Audit Report 24
Disclaimer 28
Disclosure of Core and Non-Core Property 29
XX Club Maitland City | Annual Report Club Maitland City | Annual Report XXI MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005
Directors' Report 30 June 2019
The directors present their report on Maitland City Bowls, Sports and Recreation Club Limited for the financial year ended 30 June 2019.
Information on directors The names of each person who has been a director during the year and to the date of this report are: Mr H Meskauskas President Occupation Councillor Consecutive Years Service 9 years
Mr H Cheetham Vice President Occupation Retired (Business Manager) Consecutive Years Service 18 years
Mr R Bullen Treasurer Occupation Retired (Accountant) Consecutive Years Service 18 years
Mr D Button Director Occupation Retired (Business Manager) Consecutive Years Service 6 years
Mr G Moy Director Occupation Retired (Sales Manager) Consecutive Years Service 6 years
Ms J Drennan Director Occupation Australian Lawyer Consecutive Years Service 4 years
Mr Steven Schiffmann Director Occupation Retail Businessman Consecutive Years Service 2 year
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. The company secretary is Mr Ian Martin (Chief Executive Officer). Mr Martin was appointed to this position on 10 March 2010.
Principal activities The principal activity of Maitland City Bowls, Sports and Recreation Club Limited during the financial year were the conduct of a bowling club and motels and the promotion of sport and bowling activities. No significant changes in the nature of the Company's activity occurred during the financial year.
Company objectives
The company has established short and long term objectives as outlined in the club’s business plan which is reviewed on an annual basis. These objectives are both financial and non-financial and are aimed towards providing a comfortable and secure environment to its members that continues to meet their needs. These objectives are measured through both financial and non-financial key performance indicators that have been determined relevant to the club industry.
1
Club Maitland City | Annual Report 1 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019 Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Directors' Report Directors' Report 30 June 2019 30 June 2019
Company objectives Review of operations Regular repayment of the Club’s loan facility in advance of its required commitments; The company’s vision is to be the club of choice for the community and employees by delivering a unique, modern, comfortable and diverse experience. Directors interests and benefits Input additional text here.No director of the Company has received or become entitled to receive any benefit by reason of a Strategy for achieving the objectives contract made by the Company or a related corporation with a director or with a firm of which he is a member, or with a Each year, the Directors and Senior Management conduct strategic planning sessions to improve the Club’s core functions Company in which he has a substantial financial interest other than as disclosed in Note 18. and financial performance as well as identify opportunities for new revenue streams. These activities are undertaken to progress the company’s objectives. Underpinning the achievement of the company’s objectives are the following key Significant changes in state of affairs strategies: During 2017/18, the Company entered into a memorandum of understanding with Maitland District Leagues Club (MDLC) Operation of a profitable business to create adequate capital for re-investment into member amenities and further which was approved by both memberships on 30 May 2018. The amalgamation did not proceed as planned in 2018/19 sporting and community initiatives. largely due to the administrator of MDLC being unable to secure a satisfactory sale price for the MDLC club premises. The Conduct company business under sound corporate governance principles and in compliance with relevant legislative Company purchased 15 GME blocks from the administrator at liquidation and has realised all investments with MDLC and other regulations. including the full repayment of all loaned funds from previous years. The amalgamation process has ceased with no further opportunity to the Company. In the opinion of the Directors there were no other significant changes in the state of affairs of the Company that occurred Performance measures during the financial year under review. The Company measures its own performance through the use of both financial and non-financial benchmarks. The benchmarks are used by the Directors to assess the financial sustainability of the Company and whether the Company’s short-term and long-term objectives are being achieved. Performance is assessed regularly against previous results, Meetings of directors approved budgets and relevant industry benchmarks. During the financial year, 30 meetings of directors (including committees of directors) were held. Attendances by each Key performance indicators used include: director during the year were as follows: Earnings before interest, tax, depreciation and amortisation; Gross profit analysis; Solvency tests; Wastage benchmarking; and Cost centre analysis.
Members' guarantee Maitland City Bowls, Sports and Recreation Club Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up, is limited to $ 20 for members that are corporations and $ 20 for all other members, subject to the provisions of the company's constitution. At 30 June 2019 the collective liability of members was $ 177,940 (2018: $ 174,620). Partial attendance is defined as attendance exceeding 50% of the time of the meeting. Directors further attended the annual Review of operations general meeting held on the 16 September 2018. The key financial results of the company’s operations have been outlined below: Auditor's independence declaration The profit of the company amounted to $555,464 (2018: $874,931). The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year Profit from bar trading amounted to $1,004,125 (2018: $1,028,299) and gross profit percentage of 55.4% (2018: ended 30 June 2019 has been received and can be found on page 4 of the financial report. 57.2%) was obtained from sales of $1,813,502 (2018: $1,797,023). Signed in accordance with a resolution of the Board of Directors: Net gaming revenue amounted to $7,448,470 (2018: $7,441,562). Net operating profit from the Maitland City Motel (excluding interest expenses) amounted to $205,490 (2018: $319,530). Net operating profit from the Old Maitland Inn (excluding interest expenses and acquisition costs) amounted to $270,910 (2018: $287,666). During the financial year the Club’s Directors were focussed on the following key matters: Ensuring the continued improvement of new business segments and operational departments; Continued review and development of the mid to long term strategic master plan; Continued vigilance of base cost monitoring and exploration of income expansion opportunities; and 2 3
2 Club Maitland City | Annual Report Club Maitland City | Annual Report 3 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2019
2019 2018 Note $ $ Bar Sales 1,813,502 1,797,023 Cost of sales (809,377) (768,724) Gross profit 1,004,125 1,028,299 Auditor's Independence Declaration under Section 307C of the Net Poker Machine 7,448,470 7,441,562 Corporations Act 2001 to the Directors of Maitland City Bowls, Sports and Gaming Commissions 188,129 181,029 Recreation Club Limited Bowls Revenue 35,770 50,355 Bistro and catering revenue 1,577,964 1,525,244 Motel Revenue 2,054,655 2,211,049 I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019, there have been: Coffee Revenue 83,728 93,387 (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to Raffles & Commissions 413,776 404,461 the audit; and Other income 3 95,944 152,301 Expenditure (ii) no contraventions of any applicable code of professional conduct in relation to the audit. Bistro and catering (1,657,414) (1,629,793) Gaming Commissions (158,841) (156,084) Bar Trading (502,312) (550,091) Coffee shop (117,074) (132,256) Poker Machine (2,999,787) (3,011,985) Insurance (194,255) (133,756) Promotion and entertainment (712,149) (676,293) PROSPERITY AUDIT SERVICES Motel trading (1,534,441) (1,548,678) Bowling costs (435,509) (444,294) Administration (3,665,445) (3,532,341) Borrowing Costs (369,870) (397,185)
Profit before income tax 555,464 874,931 Income tax expense - -
Profit for the year 555,464 874,931
LUKE MALONE Other comprehensive income Partner Items that will not be reclassified subsequently to profit or loss 29 August 2019 Revaluation of intangible assets - 1,540,000
Newcastle Total comprehensive income for the year 555,464 2,414,931
The accompanying notes form part of these financial statements. 4 5
4 Club Maitland City | Annual Report Club Maitland City | Annual Report 5 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Statement of Financial Position Statement of Changes in Equity As At 30 June 2019 For the Year Ended 30 June 2019
2019 2018 Asset Note $ $ Retained Revaluation Earnings Surplus Total ASSETS $ $ $ CURRENT ASSETS Balance at 1 July 2018 17,272,084 5,641,669 22,913,753 Cash and cash equivalents 4 1,574,987 1,850,862 Profit/(Loss) for the year 555,464 - 555,464 Trade and other receivables 5 26,753 132,474 Other comprehensive income - - - Inventories 131,815 200,675 Other assets 16,331 40,532 Balance at 30 June 2019 17,827,548 5,641,669 23,469,217 TOTAL CURRENT ASSETS 1,749,886 2,224,543 NON-CURRENT ASSETS Asset Retained Revaluation Property, plant and equipment 6 27,282,811 25,893,507 Earnings Surplus Total Intangible assets 7 4,921,185 4,021,185 $ $ $ TOTAL NON-CURRENT ASSETS 30,814,692 31,303,996 Balance at 1 July 2017 16,397,153 4,101,669 20,498,822 TOTAL ASSETS 32,564,578 33,528,539 Profit/ (Loss) for the year 874,931 - 874,931 Other comprehensive income - 1,540,000 1,540,000 LIABILITIES CURRENT LIABILITIES Balance at 30 June 2018 17,272,084 5,641,669 22,913,753 Trade and other payables 8 1,049,405 1,240,528 Interest bearing liabilities 9 - 133,116 Employee benefits 10 202,353 263,092 Other liabilities 11 217,333 224,234 TOTAL CURRENT LIABILITIES 1,469,091 1,860,970 NON-CURRENT LIABILITIES Bank loans - secured 9 7,545,000 8,675,000 Employee benefits 10 81,270 78,816 TOTAL NON-CURRENT LIABILITIES 7,626,270 8,753,816 TOTAL LIABILITIES 9,095,361 10,614,786 NET ASSETS 23,469,217 22,913,753
EQUITY Reserves 12 5,641,669 5,641,669 Retained Earnings 17,827,548 17,272,084 TOTAL EQUITY 23,469,217 22,913,753
The accompanying notes form part of these financial statements. The accompanying notes form part of these financial statements. 6 7
6 Club Maitland City | Annual Report Club Maitland City | Annual Report 7 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Statement of Cash Flows Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
2019 2018 Note $ $ The financial report covers Maitland City Bowls, Sports and Recreation Club Limited as an individual entity. Maitland City Bowls, Sports and Recreation Club Limited is a not-for-profit Company limited by guarantee, incorporated and domiciled in CASH FLOWS FROM OPERATING ACTIVITIES: Australia. Receipts from customers 15,214,837 15,147,233 Payments to suppliers and employees (12,334,922) (11,776,746) The functional and presentation currency of Maitland City Bowls, Sports and Recreation Club Limited is Australian dollars. Interest received 8,581 12,985 Interest paid (351,533) (383,224) Comparatives are consistent with prior years, unless otherwise stated.Where required by Accounting Standards, Net cash provided by/(used in) operating activities comparative figures have been adjusted to conform with changes in presentation for the current financial year. 2,536,963 3,000,248 When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be CASH FLOWS FROM INVESTING ACTIVITIES: disclosed. Proceeds from sale of plant and equipment 143,699 89,420 Purchase of property, plant and equipment (795,221) (1,463,024) 1 Basis of Preparation Payments for intangible assets (900,000) - Extension of loan to Maitland District Leagues Club - (125,589) Maitland City Bowls, Sports & Recreation Club Limited has elected to adopt the Australian Accounting Standards – Net cash provided by/(used in) investing activities Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards. (1,551,522) (1,499,193)
The financial report is a general purpose financial report that has been prepared in accordance with Australian CASH FLOWS FROM FINANCING ACTIVITIES: Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and Repayment of borrowings (1,761,316) (1,679,674) the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Proceeds from borrowings 500,000 - Net cash provided by/(used in) financing activities (1,261,316) (1,679,674) Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied Net increase/(decrease) in cash and cash equivalents held (178,619) (275,875) unless otherwise stated. Cash and cash equivalents at beginning of year 1,850,862 2,029,481 Cash and cash equivalents at end of financial year 4 1,574,987 1,850,862 The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.
The financial statements were authorised for issue on the date that the Directors’ Declaration was signed.
2 Summary of Significant Accounting Policies
(a) Revenue and other income
The club recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of Maitland City Bowls, Sports & Recreation Club Limited's activities as discussed below.
Revenue from the sale of goods is recognised at the point of delivery.
Gaming machine revenue is recognised at the point of sale and represents the difference between the amounts earned through gaming wagers less the payouts from those wagers. Liabilities are recognised for anticipated payouts for progressive jackpots.
Grant revenue is recognised in the statement of profit or loss and other comprehensive income on a systematic basis over the useful life of the underlying asset purchased using the grant revenue.
The accompanying notes form part of these financial statements. 8 9
8 Club Maitland City | Annual Report Club Maitland City | Annual Report 9 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
2 Summary of Significant Accounting Policies 2 Summary of Significant Accounting Policies
(a) Revenue and other income (f) Property, plant and equipment
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the Freehold Property financial assets. Increases in the carrying amount arising on revaluation of land and buildings are recognised in other Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the Revenue from membership subscriptions is recognised on a straight line basis over the financial year. All heading of revaluation surplus. All other decreases are recognised in profit or loss. revenue is stated net of the amount of goods and services tax (GST). Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of (b) Income Tax the asset and the net amount is restated to the revalued amount of the asset.
The Club is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.The Club has Freehold land and buildings that have been contributed at no cost, or for nominal cost, are initially recognised obtained a private ruling from the Australian Tax Office confirming the exemption up to and including the year and measured at the fair value of the asset at the date it is acquired. ending 30 June 2014. After this date the Club will need to reassess the tax exempt status and seek a new private ruling or perform a self-assessment. The Directors have assessed that there has been no material Plant and equipment change to the Club that would warrant seeking a new private ruling. Plant and equipment are measured using the cost model. Plant and equipment are carried at cost less (c) Cash and cash equivalents accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down Cash and cash equivalents include cash on hand, term deposits and deposits held at call with banks. immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present. (d) Receivables Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as Accounts receivable and other debtors include amounts due from customers for goods sold in the ordinary appropriate, only when it is probable that future economic benefits associated with the item will flow to the course of business. Receivables expected to be collected within 12 months of the end of the reporting period company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised are classified as current assets. All other receivables are classified as non-current assets. as expenses in profit or loss in the financial period in which they are incurred.
Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using Depreciation the effective interest method, less any provision for impairment.
Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets (e) Inventories useful life to the Company, commencing when the asset is ready for use.
Inventories are measured at the lower of cost and net realisable value.Components of cost include the The depreciation rates used for each class of depreciable asset are shown below: purchase price and, where applicable, any charges in the delivery of inventories.
(f) Property, plant and equipment Fixed asset class Depreciation rate Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any Buildings 2.5% - 10% accumulated depreciation and impairment. Plant and Equipment 10% - 70%
Freehold Property 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. Freehold land and buildings are shown at their fair value based on periodic, but at least every five years, valuations by external independent valuers, less subsequent depreciation for buildings.
In periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the carrying amount for the land and buildings is not materially different to the fair value.
10 11
10 Club Maitland City | Annual Report Club Maitland City | Annual Report 11 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
2 Summary of Significant Accounting Policies 2 Summary of Significant Accounting Policies
(g) Intangibles (i) Financial instruments
(i) Goodwill Financial liabilities
Goodwill is initially recorded at the amount by which the purchase price for a business combination Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. exceeds the fair value attributed to the interest in net fair value of identifiable assets, liabilities and Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability contingent liabilities acquired at date of acquisition. Goodwill is tested annually for impairment and is derecognised. carried at cost less accumulated impairment.Refer to Note 2(o) for further information. (j) Accounts Payable (ii) Poker Machine Entitlements Accounts payable and other payables represent the liability outstanding at the end of the reporting period for Poker machine entitlements held by the club are recorded at director's valuation. The valuation is based goods and services received by the company during the reporting period which remain unpaid. The balance is on information on recent sales activity from the NSW Office of Liquor, Gaming and Racing. recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(h) Impairment of assets (k) Employee provisions
At the end of each reporting period, the entity reviews the carrying amounts of its tangible and intangible assets Provision is made for the company’s liability for employee benefits arising from services rendered by employees to determine whether there is any indication that those assets have been impaired. If such an indication exists, to the end of the reporting period. Employee provisions that are expected to be settled within one year have the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in been measured at the amounts expected to be paid when the liability is settled. Employee provisions payable use, is compared to the asset’s carrying amount. Any excess of the asset’s carrying amount over its later than one year have been measured at the present value of the estimated future cash outflows to be made recoverable amount is recognised in profit or loss. for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to attributable to employee provisions. generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an asset’s class, the entity estimates the recoverable amount of Contributions are made by the entity to an employee superannuation fund and are charged as expenses when the cash-generating unit to which the class of assets belong. incurred.
(i) Financial instruments (l) Goods and services tax (GST)
Initial recognition and measurement 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). Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of to either purchase or sell the asset (i.e. trade date accounting is adopted). GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Financial instruments are initially measured at fair value plus transaction costs. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities, which are recoverable from or payable to the ATO, are presented as operating cash flows Classification and subsequent measurement included in receipts from customers or payments to suppliers.
Financial instruments are subsequently measured at fair value, amortised cost using the effective interest (m) Comparative Figures method, or cost. Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in Loans and receivables presentation for the current financial year.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not (n) Fair value of assets and liabilities quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. The company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.
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12 Club Maitland City | Annual Report Club Maitland City | Annual Report 13 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
2 Summary of Significant Accounting Policies 2 Summary of Significant Accounting Policies
(n) Fair value of assets and liabilities (p) New Australian Accounting Standards
"Fair value" is the price the company would receive to sell an asset or would have to pay to transfer a liability in AASB 16 Leases (applicable to annual reporting periods beginning on or after 1 January 2019) an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market The Club has chosen not to early-adopt AASB 16. However, the Club has conducted a preliminary assessment pricing information is used to determine fair value. Adjustments to market values may be made having regard to of the impact of this new Standard. the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. A core change resulting from applying AASB 16 is that most leases will be recognised on the balance sheet by lessees as the standard no longer differentiates between operating and finance leases. An asset and a financial liability are recognised in accordance to this new Standard. There are, however, two exceptions allowed: short- To the extent possible, market information is extracted from the principal market for the asset or liability (i.e. the term and low-value leases. As the Club does not have any material operating leases, the standard is not market with the greatest volume and level of activity for the asset or liability). In the absence of such a market, expected to have a material impact on the Club. market information is extracted from the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs). AASB 15 Revenue from Contracts with Customers (applicable to annual reporting periods beginning on or after 1 January 2019) For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its The Club has chosen not to early-adopt AASB 15. However, the Club has conducted a preliminary assessment highest and best use. of the impact of this new Standard. AASB 15 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle is that an entity recognises revenue to depict the transfer of promised goods or services to customers at an amount that reflects the The fair value of liabilities and the entity's own equity instruments (if any) may be valued, where there is no consideration to which the entity expects to be entitled in exchange for those goods or services. AASB 15 is not observable market price in relation to the transfer of such financial instrument, by reference to observable expected to have a significant impact on the Club. market information where such instruments are held as assets. Where this information is not available, other valuation techniques are adopted and where significant, are detailed in the respective note to the financial statements. AASB 1058 Income of Not for Profit Entities (applicable to annual reporting periods beginning on or after 1 January 2019) (o) Critical Accounting Estimates and Judgments The Club has chosen not to early-adopt AASB 1058. However, the Club has conducted a preliminary assessment of the impact of this new Standard. The Group generates approximately 98% of revenue from sale The Directors evaluate estimates and judgments incorporated into the financial report based on historical of goods, which will be subject to the requirements of AASB 15 Revenue from Contracts with Customers. knowledge and best available current information. Estimates assume a reasonable expectation of future events Accordingly, AASB 1058 is not expected to have a significant impact on the Club. and are based on current trends and economic data, obtained both externally and within the Company.
(q) New and Amended Accounting Policies Adopted by the Club Key Estimates - Impairment
The Club has adopted AASB 9 Financial Instruments with an initial application date of 1 July 2018. New The Company assesses impairment at each reporting date by evaluating conditions specific to the Company requirements have been introduced for the classification and measurement of financial assets and financial that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset liabilities, as well as for impairment. As a result, the Club has changed its financial instruments accounting is determined. policies. There were no financial assets/liabilities which the Club held that were subject to reclassification/elected reclassification upon the application of AASB 9 and accordingly, there have been no The company recognises goodwill for previous business combinations. The Directors have assessed the changes to financial statement line items. carrying value of the balance at the reporting date. The result of this analysis indicates that no impairment of goodwill exists as at 30 June 2019. As per AASB 9, an expected credit loss model is applied, not an incurred credit loss model as per the previous Standard applicable (AASB 139). To reflect changes in credit risk, this expected credit loss model requires the There were no other assets that were subject to impairments assessments as, in the opinion of the directors, Club to account for expected credit loss since initial recognition. A simple approach is followed in relation to there were no indicators of impairment during the year ended 30 June 2019. trade receivables, as the loss allowance is measured at lifetime expected credit loss. The Club reviewed and assessed the existing financial assets on 1 July 2018. The assessment was made to test the impairment of (p) New Australian Accounting Standards these financial assets using reasonable and supportable information that is available to determine the credit risk of the respective items at the date they were initially recognised, and to compare that to the credit risk as at 1 July 2017 and 1 July 2018. No adjustments have arisen from this assessment. The AASB has issued a number of new and amended Accounting Standards that have mandatory application dates for future reporting periods, some of which are relevant to the Club. The directors have decided not to early-adopt any of the new and amended pronouncements. The following sets out their assessment of the There are no other new or amended accounting policies adopted by the Club for the year ended 30 June 2019. pronouncements that are relevant to the Group but applicable in future reporting periods.
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14 Club Maitland City | Annual Report Club Maitland City | Annual Report 15 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
6 Property, plant and equipment 2 Summary of Significant Accounting Policies 2019 2018 $ $ (r) Business combinations Freehold land At fair value 1,955,000 1,955,000 Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business combination is measured at fair value which is calculated as the sum of the acquisition-date fair Total freehold land 1,955,000 1,955,000 values of assets transferred by the Company, liabilities incurred by the Company to the former owners of the acquiree and the equity instruments issued by the Company in exchange for control of the acquiree. Buildings Acquisition-related costs are recognised in profit or loss as incurred. At fair value 23,310,410 23,107,630 Accumulated depreciation (3,732,280) (2,961,774)
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair Total buildings 19,578,130 20,145,856 value. Goodwill is measured as the excess of the sum of the consideration transferred over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, Plant and equipment the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the At cost 11,505,853 11,352,611 sum of the consideration transferred, the excess is recognised immediately in profit or loss as a bargain Accumulated depreciation (7,265,449) (6,197,395) purchase gain. Total plant and equipment 4,240,404 5,155,216 3 Revenue and Other Income 2019 2018 Capital Works in Progress at cost 119,973 26,739 $ $ Total capital works in progress 26,739 - Trading revenue 13,615,994 13,704,111 119,973 27,282,811 Other Income Total property, plant and equipment 25,893,507 - Profit on sale of assets 29,280 88,847 - Reversal of realised acquisition costs 14,386 10,669 (a) Core and non-core property - Interest received 8,581 12,985 - Membership subsciptions 43,697 39,800 As required by the Registered Clubs Act 1976 all Clubs are required to specify core and non-core property of the Club. As at 30 June 2019, the Directors consider that the entire balance shown for property, plant and 95,944 152,301 equipment above is core property with the exception of the Old Maitland Inn which is considered to be non-core. The total value ascribed to the Old Maitland Inn at 30 June 2019 is approximately $4.5m. Total Revenue and Other Income 13,711,938 13,856,412
(b) Revaluation of land and buildings 4 Cash and Cash Equivalents Cash on hand 243,000 237,400 The Club's land and building assets were revalued at 30 June 2015 by the independent valuers, Andrew Nock Cash at bank 1,331,987 1,613,462 Valuers (Valuer Registration No. 2144). Valuations were made on the basis of fair value in accordance with Australian Accounting Standards using the cost approach for the Club's building assets due to their specialised 1,574,987 1,850,862 nature and the market approach for the Club's land assets based on comparison to recent market evidence.
5 Trade and Other Receivables The directors have reviewed the key assumptions adopted by the valuers in 2015 and do not believe there has Trade receivables 24,768 124,975 been a significant change in the assumptions at 30 June 2019. The directors therefore believe the carrying Other receivables 1,985 7,499 amount of the land and helding assets correctly reflects the fair value at 30 June 2019.
26,753 132,474 (c) 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:
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16 Club Maitland City | Annual Report Club Maitland City | Annual Report 17 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
6 Property, plant and equipment 7 Intangible Assets $20,000 per entitlement (2018: $20,000). The company acquired 45 poker machine licences in 2018/19 at a cost of $20,000 per entitlement. Legislation mandates that 1 in every 3 licenses to be forfeited upon purchase. Accordingly, (c) Movements in Carrying Amounts the company holds an additional net 30 entitlements from this transaction. Capital Works in Progress at Plant and 8 Trade and Other Payables cost Land Buildings Equipment Total 2019 2018 $ $ $ $ $ $ $ Year ended 30 June 2019 CURRENT Balance at 1 July 2018 26,739 1,955,000 20,145,855 5,155,216 27,282,810 Trade creditors 661,276 678,104 Additions 93,234 - 202,781 499,206 795,221 GST payable - 186,806 Disposals - - - (172,979) (172,979) Sundry payables and accruals 388,129 375,618 Depreciation - - (770,506) (1,241,039) (2,011,545) 1,049,405 1,240,528 Balance at the end of the year 119,973 1,955,000 19,578,130 4,240,404 25,893,507
9 Interest bearing liabilities 7 Intangible Assets CURRENT 2019 2018 IGT gaming system finance - secured - 133,116 $ $ Goodwill 1,315,676 1,315,676 - 133,116 Accumulated impairment losses (94,491) (94,491) NON-CURRENT Net carrying value 1,221,185 1,221,185 Bank loans - secured 7,545,000 8,675,000 Poker machines licenses (170) (2018: 140) 7,545,000 8,675,000 at directors valuation 3,700,000 2,800,000
Total Intangibles 4,921,185 4,021,185 (a) Bank loans
The Club has two bank loans with maximum facility limits of $5,250,000 and $5,800,000 (terminating on 31 (a) Movements in carrying amounts of intangible assets August 2020). These loans incurred an interest rate of 4.4% during the year. Poker Machine The above facilities are subject to 14 loan covenants based on certain financial ratios and operating conditions. Entitlements Goodwill Total The Club complied with all loan covenants during the year. $ $ $ Year ended 30 June 2019 (b) Gaming system finance Balance at the beginning of the year 2,800,000 1,221,185 4,021,185 Additions 900,000 - 900,000 During the 2015-16 year, the Club entered into a payment arrangement with IGT to fund the installation of a new gaming system. The arrangement requires the Club to repay the cost of the system in 36 monthly Closing value at 30 June 2019 3,700,000 1,221,185 4,921,185 instalments, terminating in February 2019. The arrangements are not subject to an interest rate.
The recoverable amount of poker machines entitlements is based on the fair value less costs to sell. The methodology (c) Security used to determine fair value less costs to sell is the observable market price per unit as at the reporting date. The bank loans are secured by a first registered and equitable mortgage over the land and improvements of the Poker machine entitlements have been assessed as having an indefinite useful life. An indefinite useful life is Club together with an equitable mortgage and floating charge over the assets and undertakings of the Club supported by the absence of an expiry date for the licenses. Factors that were important in determining this indefinite (including the liquor license). useful life include current government policy, current market conditions and current economic conditions.
The directors assessment of the market value of the 140 existing poker machine entitlements as at 30 June 2019 was
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18 Club Maitland City | Annual Report Club Maitland City | Annual Report 19 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Notes to the Financial Statements For the Year Ended 30 June 2019 For the Year Ended 30 June 2019
10 Provisions 13 Auditors' Remuneration 2019 2018 2019 2018 $ $ $ $ CURRENT Remuneration of the auditor for Provision for long service leave 24,086 45,545 - auditing or reviewing the financial statements 13,500 13,125 Provision for annual leave 178,267 217,547 - tax compilation and advisory services 1,135 3,200 - advice, implementation and training for finance system 202,353 263,092 transition 61,021 - NON-CURRENT - review of salary packaging 400 - Provision for long service leave 81,270 78,816 - other assurance services - 408
81,270 78,816 76,056 16,733
The current portion for employee provisions includes the total amount accrued for annual leave entitlements and the 14 Capital and Leasing Commitments amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the company does not expect the full amount of annual leave or (a) Capital expenditure projects long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the company does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement. There were no capital expenditure commitments entered into at the reporting date.
The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not (b) Operating lease commitments yet vested in relation to those employees who have not yet completed the required period of service. There were no operating lease commitments entered into at the reporting date. 11 Other liabilities Grant funding received 160,875 197,235 15 Related Party Transactions Income received in advance 56,458 26,999 There were no related party transactions during the 2019 financial year. 217,333 224,234
16 Key Management Personnel Remuneration 12 Reserves Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, Revaluation Reserve directly or indirectly, including any director (whether executive or otherwise) is considered key management personnel. Key management personnel compensation: The revaluation reserve records the directors annual revaluation of intangible assets as well as the independent Short-term benefits valuations performed over the Club's land and building assets. The revaluation reserve by class: Salaries, wages and allowances 264,728 254,498 Superannuation 31,668 21,757 Non-financial benefits 26,628 Intangible assets - poker machine licenses 2,800,000 2,800,000 36,500 Property, plant and equipment - land 1,007,329 1,007,329 332,896 302,883 Property, plant and equipment- buildings 1,834,340 1,834,340
5,641,669 5,641,669
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20 Club Maitland City | Annual Report Club Maitland City | Annual Report 21 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Maitland City Bowls, Sports and Recreation Club Limited Maitland City Bowls, Sports and Recreation Club Limited
ACN: 000 912 005 ACN: 000 912 005
Notes to the Financial Statements Directors' Declaration For the Year Ended 30 June 2019 The directors of the Company declare that:
17 Financial risk management 1. The financial statements and notes, as set out on pages 5 to 22, are in accordance with the Corporations Act 2001 and: The company’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and accounts payable. The carrying amounts for each category of financial instruments, measured in a. comply with Australian Accounting Standards - Reduced Disclosure Requirements; and accordance with AASB 9 as detailed in the accounting policies to these financial statements, are as follows: 2019 2018 b. give a true and fair view of the financial position as at 30 June 2019 and of the performance for the year ended on $ $ that date of the Company.
Financial Assets 2. In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and Cash and cash equivalents 1,574,987 1,850,862 when they become due and payable. Trade and other receivables 26,753 132,474 This declaration is made in accordance with a resolution of the Board of Directors. 1,601,740 1,983,336 Financial Liabilities Trade and other payables 1,049,396 1,240,528 Bank loans - secured 7,545,000 8,808,116
8,594,396 10,048,644
18 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 30 June 2019 (30 June 2018: None).
19 Events after the end of the Reporting Period
No 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.
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22 Club Maitland City | Annual Report Club Maitland City | Annual Report 23 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Auditor's Independence Declaration under Section 307C of the Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Maitland City Bowls, Sports and Corporations Act 2001 to the Directors of Maitland City Bowls, Sports and Recreation Club Limited Recreation Club Limited
Report on the Audit of the Financial Report Classification of Interest-Bearing Liabilities
Qualified Opinion For the financial year ended 30 June 2018, the Company’s secured bank loans for $3,295,000 and $5,380,000 had termination dates of 29 November 2018 and 31 August 2018 respectively. Notwithstanding the termination dates, the Company classified the secured bank loans as non-current liabilities in the Statement of Financial Position. This is outside We have audited the financial report of Maitland City Bowls, Sports and Recreation Club Limited (the Company), which the requirements of AASB 101 Presentation of Financial Statements as the Company did not have an unconditional right to comprises the statement of financial position as at 30 June 2019, the statement of profit or loss and other comprehensive defer settlement of the liabilities for at least twelve months after the reporting period. The financial effect for the year ended income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the 30 June 2018 of the above departure is an overstatement of non-current interest-bearing liabilities of $8,675,000 and an financial statements, including a summary of significant accounting policies, and the directors' declaration. understatement of current interest-bearing liabilities of the same amount. During the financial year ended 30 June 2019, the Company was successful in rolling over the secured bank loans and has now correctly classified the secured bank loans as In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the non-current liabilities in the Statement of Financial Position. Our opinion is not qualified in respect of the figures presented accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: for 30 June 2019.
(i) giving a true and fair view of the Company's financial position as at 30 June 2019 and of its financial performance for We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are the year ended; and 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 (ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Regulations 2001. 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. Basis for Qualified Opinion 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. Director’s Valuation of Poker Machine Licenses We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified As outlined in Note 2(g) to the financial statements, the Company has recognised a director’s valuation in the amount of opinion. $3,700,000 for 140 poker machines licenses held as at 30 June 2018. This practice is not in accordance with the recognition requirements of AASB 138 Intangible Assets. Of this balance, 10 licenses were purchased in 2011 at a cost of $165,000 and an additional 30 licenses were purchased in 2019 at a cost of $900,000. The remaining balance relates to Responsibilities of Directors for the Financial Report licenses that were allocated and not purchased by the Company. In our opinion, the value of the licenses above the initial cost and the licenses not purchased should not have been recognised on the Statement of Financial Position. The financial The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in effect for the year ended 30 June 2019 of the above departure is an overstatement of poker machine licenses of accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and $2,635,000 and an overstatement of the Revaluation Reserve of the same amount. 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.
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24 Club Maitland City | Annual Report Club Maitland City | Annual Report 25 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019
Auditor's Independence Declaration under Section 307C of the Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Maitland City Bowls, Sports and Corporations Act 2001 to the Directors of Maitland City Bowls, Sports and Recreation Club Limited Recreation Club Limited
Auditor's Responsibilities for the Audit of the Financial Report 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. 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 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: PROSPERITY AUDIT SERVICES
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. LUKE MALONE Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are Partner appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. 29 August 2019 Newcastle Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
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.
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.
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26 Club Maitland City | Annual Report Club Maitland City | Annual Report 27 MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED MAITLAND CITY BOWLS, SPORTS & RECREATION CLUB LIMITED A.C.N. 000 912 005 A.C.N. 000 912 005 Maitland City Bowls, Sports and Recreation Club Limited FOR THE YEAR ENDED 30 JUNE 2019 FOR THE YEAR ENDED 30 JUNE 2019 ACN: 000 912 005 For the Year Ended 30 June 2019
Disclaimer Disclosure of Core and Non-Core Property
Pursuant to Section 41J(2) of the Registered Clubs Act for the financial year ended 30 June 2019:
The additional financial data presented on page 29 is in accordance with the books and records of the Company which a) the following properties are core property of the Club; have been subjected to the auditing procedures applied in our statutory audit of the Company for the year ended 30 June 2019. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data i) Clubhouse and Car Park located at LOT 842 — DP 774734 provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Maitland City Bowls, Sports and Recreation Club Limited) in respect of such data, including any errors or ii) Three (3) Bowling Greens located at LOT 842 — DP 774734 omissions therein however caused. iii) Maitland City Motel located at LOT 47 — DP 1122802
iv) Vacant Land located at LOT 8416 — DP 884390
v) Car Park Land located at LOT 83 — DP 734577
b) the following properties are non-core property of the Club: PROSPERITY AUDIT SERVICES i) Old Maitland Inn at LOT 2 — DP 560296
Notes to members
1. Section 41J(2) of the Registered Clubs Act requires the annual report to specify the core property and non-core property of the Club as at the end of the financial year which the report relates. LUKE MALONE Partner 2. Core property is any real property owned or occupied by the Club that comprises:
29 August 2019 a) the defined premises of the Club; or Newcastle 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.
3. Non-core property is any 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.
4.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
c) any sale is by way of public auction or open tender conducted by an independent real estate agent or auctioneer.
5. 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 and by Section 41J itself. For example, the requirements in paragraph 4 above do not apply to;
a) Core property that is being leased or licensed for a period not exceeding 10 years on terms that have been the subject of a valuation by a registered valuer; 28 b) Core property that is leased or licensed to a telecommunications provider for the purposes of a telecommunications tower.
29 28 Club Maitland City | Annual Report Club Maitland City | Annual Report 29 14 Arthur Street, Rutherford, NSW 2320 p. 02 4939 1200 e. [email protected] www.maitlandcity.com.au 30 Club Maitland City | Annual Report