ANNUAL FINANCIAL REPORT HAWTHORN FOOTBALL CLUB LIMITED
| YEAR ENDING 31 OCTOBER 2018 |
ACN 005 068 851 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES ACN 005 068 851 ANNUAL REPORT FOR THE YEAR ENDED 31 OCTOBER 2018 HAWTHORNHawthorn Football FOOTBALL Club Limited CLUB and LIMITED its controlled entities AND ITS CONTROLLED ENTITIES CONTENTSContents
Page
Directors’ report 3
Lead auditor’s independence declaration 18
Statements of profit or loss and other comprehensive income 19
Statements of changes in equity 20
Statements of financial position 21
Statements of cash flows 22
Notes to the consolidated financial statements 23
Directors’ declaration 42
Independent auditor’s report 43
Appendix 1 – Foundation Report 45
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2 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT Hawthorn Football Club Limited and its controlled entities FORDirectors’ THE report YEAR ENDED 31 OCTOBER 2018 For the year ended 31 October 2018
The Directors present their report together with the financial report of Hawthorn Football Club Limited (“Club”) and the Group, (being the Club and its controlled entities), for the year ended 31 October 2018 and the auditor’s report thereon.
Directors e Directors o t e lu at an ti e durin or since t e end o t e inancial ear are ennett A resident an i ell ice resident R ar e A D o ers A a e A L rist anson A or er ice resident L olan R ali earer R anden er
Appointed ice resident 1 Fe ruar 1 replaced L rist anson Retired ro t e oard 1 Dece er 1 Appointed to t e oard 1 Fe ruar 1
Principal Activities
The principal activities of the Club are to compete within the Australian Football League (“AFL”) by maintaining, providing, supportin and controllin a tea o oot allers earin t e na e o t e a t orn Foot all lu In 1 t e lu also ielded a o ens tea in t e ictorian Foot all Lea ue FL ere ere no si ni icant c an es in t e nature o t e principal acti ities durin t e ear
Dividends
e onstitution o t e lu pro i its t e lu ro t e pa ent o di idends and accordin l no di idends ere paid or declared durin t e ear
Controlled Entities
The Club is required to present consolidated financial accounts. The consolidated group (“Group”) comprises the Club, HFC CS Fixed Trust (“CSFT”), Box Hill Hawks Football Club Ltd (“BHHFC”), HFC Foundation including the Public Ancillary Fund through its nominee HFC Foundation Nominees Pty Ltd (“Foundation”) and HFC Land Pty Ltd (“HFC Land”) as trustee of the HFC Land Trust.
e Foundation is t e trustee o t e F Foundation u lic Ancillar Fund
e lu is t e sole unit older o F Land rust or ic F Land t Ltd is t e trustee
e lu is t e sole unit older o F ic in turn o ns a interest in a aroline prin s oint enture t e no inee or ic is o inees t Ltd is t e lease old operator o t e est aters otel ntertain ent o plex
ile t e lu does not old an o ners ip interest in F t e lu is dee ed to a e t e a ilit to o ern t e inancial and operatin policies o F and conse uentl consolidates t is entit
3 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES DIRECTORS’ REPORT (CONTINUED) FOR t or THE oot YEAR ENDED i ite 31its co tro e OCTOBER e tities 2018 Directors’ report (continued) or t e e r e e cto er
per ti i ci e ie
The Club is delighted to announce a net profit for the year ended 31 October 2018 of 2,011,3 3 (Club 201 2,10 , ).
The consolidated net profit attributable to the members of the Group for the year ended 31 October 2018 is , 2 ,038 (Consolidated 201 , 3, 38).
ort o er ecti es o t e
At its 2017 AGM the Club launched its 2050 vision. The vision aims to see Hawthorn’s premiership tally rise to a total of 20 premierships by 20 0, two of which the Club aims to achieve in the next five years.
The 33 year vision will guide the Club to deliver long term ob ectives of continual growth, innovation and on field success.
The Club’s grand vision is formed by a series of five-year strategic plans; HFC1 2018 to 2022, HFC2 2023 to 2027, HFC3 2028 to 2032 and beyond.
The Club is currently in the first five-year strategic plan titled ‘Dare to be Different’ which will drive the Club’s priorities and decision making through to 2022.
There are several strategic priorities outlined within ‘Dare to be Different’ including winning two premierships, achieving 100,000 members, developing a new training and administration facility at the ennedy Community Centre, securing an AFL licence and extending the Club’s Tasmanian Government partnership.
The Club is progressing well with regards to the goals outlined in ‘Dare to be Different’ having reached its target of 81,000 members in 2018, beginning surcharge trial earth works at the ennedy Community Centre and continuing to build its presence in women’s football.
er or ce e e t
n the current strategic plan, the Club measures its performance across five key strategic pillars, namely Football, Commercial Growth, People, Family and Facilities.
An xecutive restructure was undertaken in 2018 to ensure the Club was fit for purpose and best placed to succeed across all strategic pillars.
The Club continues to focus on the development and wellbeing of its people, having elevated the People and Culture portfolio onto the xecutive team. n addition to this, the area of integrity has had significant growth in the past 12 months with the appointment of an ntegrity Facility anager and the restructured ntegrity and Compliance Board Sub Committee. These steps move to ensure the Club is safe guarded against the growing threats to the AFL industry, especially in the areas of gambling, anti doping and respect and responsibility.
The Club’s focus on innovation remains unwavering, with the introduction of the Hawks Abroad program. Hawks Abroad is an annual program which offers several staff within the business the opportunity to undertake an overseas study tour. The first Hawks Abroad trip took take place in October 2018.
hawthornfc.com.au 4 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES 5 DIRECTORS’ REPORT (CONTINUED) FORHawthorn Football Club Limited and its controlled entities THE YEAR ENDED 31 OCTOBER 2018 Directors’ report (continued) For the year ended 31 October 2018 Operating and financial review (continued)
Performance Management (continued)
Hawthorn is well placed and ready to embrace the challenges that lie ahead. With a strong Board and unified executive team the Club looks forward to setting higher aspirational goals as it continues to work towards the targets outlined in ‘Dare to be Different.'
Board of Directors
On 15 February 2018 the Board welcomed Radek Sali and Tim Shearer as Directors. The Board farewelled Andrew Gowers who retired as Director on 14 December 2017. On behalf of all members the Board extends our sincere thanks to Andrew for his contribution to the Club. Peter Nankivell was appointed as Vice President of the Board on 19 February 2018.
Football
Season 2018 was one of progress for the Hawks, with the Club returning not only to the top eight, but also securing a top four finish and a double chance in the 2018 finals.
While the side fell short in both finals played, the 2018 finals series still provided invaluable experience for the Club’s younger players, many of whom had not yet been exposed to finals football.
Regardless of the result, 2018 was an exciting season for Hawks fans with the emergence of a new generation of players. Four players made their AFL debut while James Sicily, Blake Hardwick, Harry Morrison and James Worpel all continued their development at AFL level. Worpel and Morrison were also nominated for the 2018 AFL Rising Star Award.
Hawthorn celebrated one of the most decorated servants of the game with Shaun Burgoyne celebrating his 350th game milestone. The milestone was celebrated by the Hawks with a big win over the Adelaide Crows at the MCG.
The Club also farewelled Cyril Rioli, who retired from AFL football to return home to Darwin to be with his family. Paul Puopolo, Jack Gunston and Ben Stratton all celebrated their 150 games milestone, while Tom Mitchell notched his 100th AFL game and James Frawley his 200th.
A highlight of the season was the form of Tom Mitchell, who became the fifth Hawthorn player to be awarded the Charles Brownlow Medal.
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After a stunning 2018 campaign in which he broke the AF record for most disposals in a season, Mitchell polled 28 votes to take out the prestigious award.
The ball magnet averaged 35.3 disposals a game this season, on eleven occasions gathering 0 touches or more.
The award was another in a string of accolades Mitchell received in 2018. He won his second eter Crimmins Medal, was voted by his peers as the AFLPA’s MVP and was named in the All Australian team along with teammates Jack Gunston and Luke reust.
Talented young defender lake Hardwick was named runner-up in the eter Crimmins Medal, with co-vice-captain saac mith rounding out the top three. Hardwick also won the award for most promising player, ack Gunston most consistent, iam hiels best player in finals, ames orpel best first year player and Taylor Duryea was celebrated as best clubman.
Hawthorn resident eff ennett announced to a packed Crown alladium that Alastair Clarkson had signed a contract extension, which would keep him at the Club until at least the end of the 2022 season.
Throughout the season, the Club extended the contracts of several players including haun urgoyne, ack Gunston, Harry Morrison, aiden rand, Conor ash, Mitchell ewis and liver Hanrahan.
Unfortunately, the Club was hit hard on the injury front late in the 2018 season, with Ben Stratton and Jaeger O’Meara both ruled out of the Club’s semi-final clash with Melbourne Football Club. Grant Birchall also had a frustrating year with injury, unable to play a single senior game all year.
The Club farewelled Kurt Heatherley, Jono O’Rourke, Kieran Lovell and Dallas Willsmore all of whom were delisted. Hawthorn’s 2018 best clubman , Taylor Duryea, was traded to the estern ulldogs and yan urton to ort Adelaide after three years at averley. ife member rendan hitecross finished his career at the Hawks after ten years in the brown and gold while ill angford hung up the boots following eight seasons with the Club. The Hawks thanked each of the players for their commitment and contribution to the Club over the ourney.
Director of High erformance Andrew ussell departed the Hawks for a new opportunity at the Carlton Football Club after 1 years of outstanding service to the club.
hile the Club did not raise the 2018 premiership Cup, the Hawks still managed to secure two new pieces of silverware with both their men’s and women’s VFL sides winning their respective premierships.
The Hawthorn F side completed a miraculous transformation in 2018 when it defeated Geelong by 11 points to claim the premiership at tihad tadium.
Defender Chantella erera was awarded the isa Hardeman Medal as best afield after an excellent game in defence for the Hawks.
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After a season of stellar performances three Hawks were also named in the 2018 VFLW Team of the ear.
mma Mackie, Rebecca Beeson and Jayde Van Dyk were all awarded the honour. While Van Dyk received double the honours on the night, also named the competition’s ‘Rising Star’.
To cap off her breakout season, she was also awarded Hawthorn’s first ever VFLW Best and Fairest award with 63 votes. Van Dyk averaged 15 disposals while serving as an impenetrable force in Hawthorn’s defence all season.
Rebecca Beeson came runner up in the women’s best and fairest on 53 votes, with veteran Meg Hutchins finishing third on 49 votes.
Premiership players Jayde Van Dyk, mmerson Woods and Mikala Cann were recognised for their e ceptional seasons in the brown and gold, realising their AFLW dream in the 2018 Draft.
Van Dyk and Woods were drafted to Carlton with Picks 21 and 8 respectively, while Mikala was selected by Collingwood with Pick 1 .
After an impressive season with the astern Ranges in the TAC Cup Girls competition which saw Cann earn Team of the ear honours, the 1 -year-old went on to become the youngest player in the Hawks premiership side.
The Bo Hill VFL side also had a fantastic 2018 season, taking home the premiership in a nail-biting victory over the Casey Demons to secure its second flag in si years.
The Hawks came from 2 points down in the opening term to post the 10.12 2 to 8.1 2 win.
t capped off a remarkable VFL finals series for Bo Hill, who finished si th after the home and away season and almost didn t progress past their elimination final, scraping past Port Melbourne in a match that went to e tra time.
Bo Hill s AFL-listed backman David Mirra won the orm Goss Medal for best afield. perienced Hawk Brendan Whitecross won his first premiership since being drafted in 200 , having seen Hawthorn win four flags in that time and Bo Hill claim the VFL crown in 201 .
s ni
n April this year Hawthorn celebrated 1 years of playing in Tasmania with its first ever Premiership season night game against another Tasmanian favourite, St Kilda. n front of an almost-capacity crowd at UTAS Stadium in Launceston, the event kicked off with AR A Award winner and urovision songstress Samantha Jade, whose high energy rendition of Firestarter was capped off by the largest fireworks display in AFL history, launching into the clear night sky from the entire roofline rim of the stadium. It was a fitting celebration for a club that has committed so much to its island home away from home. It’s also a great example of how Tasmania’s partnership with Hawthorn gives back in surprising and unusual ways.
The Hawks v Saints mar uee game, resplendent with award-winning entertainers and fireworks, helped cement Launceston as a major events capital and shone a national spotlight on the city as a fantastic sporting event and tourism destination. The match was also significant in launching the results of a PriceWaterhouseCoopers independent review into the value of the Tasmania Hawthorn relationship which revealed the partnership delivered an annual return of 28. million dollars in direct e penditure into the local economy.
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ci ities
The lub announced an extraordinary donation from former Director eoff Harris and his family to ensure the lub continues to thrive long into the future.
The $10 million gift (which is being pledged over 5 years) was the inaugural donation towards the Club’s future capital campaign which will underpin the delivery of vital elite training and administration facilities and transform the lub for its players, staff, members and the local community.
Hawthorn plans to transform the Dingley site into the premier sporting and community facility in Melbourne’s South East.
The development will go beyond the creation of an elite training and administration facility for Hawthorn’s staff and players, and encompass community focused facilities, such as alternate sporting amenities and community hubs.
The lub continues to work closely with local community stakeholders to ensure any future facilities are inclusive and create greater opportunities for those living in and around Melbourne.
In 1 the lub also announced its future home will be named the ennedy ommunity entre in honour of club Legend, ohn ennedy Snr.
The statue of ohn ennedy Snr which is currently situated at Waverley ark will be relocated to the entrance of the ennedy ommunity entre when the site officially becomes the new home of the Hawks.
o erci entures n est ents
The Clubs’ commercial investments continued to deliver strong results in 2018. WestWaters Hotel and Entertainment Complex maintained its status as a premier accommodation and entertainment venue in the western suburbs, completing a successful year across the business, bolstered by the first full financial year of the additional 4 Mercure branded hotel rooms bringing the total number of rooms to 9 .
Vegas at Waverley ardens completed its nd year of trade in 1 and has performed well throughout the financial year. The venue remains an important investment for the lub.
ponsors ip
In 2018 the Club’s major partnerships continued with the Tasmanian Government, iiNet, Audi, adidas and Bupa. New partnerships were signed with Thomson eer, arlton and nited Breweries and Van Heusen along with ma or partnerships for the Hawthorn VFLW team, Bingo Industries and Budget ar and Truck Rental.
The lub continues to service strong and rewarding relationships with these and its other commercial partners and thanks all partners for their ongoing support.
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orpor te es
The club’s Corporate Hospitality team delivered a strong result in 2018. Year-on-year, our sales team delivered 5% growth overall. In particular, Melbourne home game events and miscellaneous (or on sold) A products performed most strongly compared with our 201 season. leasingly, our non A events such as Melbourne Cup Carnival, Australian Grand rix and other major events continue to act as a solid revenue raiser within our commercial team.
e ers ip nd erc ndise
Hawthorn ootball Club bro e its all time membership record for the 12th consecutive year, surpassing the 80,000 mar for the first time in the Club’s history. This season’s final membership tally finished at 81,017 (2017: 75,663) and includes over ,000 Tasmanian members. 5 of members have joined our annual roll over payment plan Haw sDirect. The Club placed second on the A membership ladder behind ichmond.
The merchandise department recorded a sound result in 2018 with gross revenues exceeding $1.8 million and a healthy gross profit margin of , with online sales contributing over 5 of sales and Adidas product sales contributing to 0 of total sales.
tc D ttend nces
The Club recorded an average attendance of 5,12 across seven Melbourne home games in 2018 (201 , 1 ). Season highlights included the ound 20 match against Essendon ( 8,85 ) and the ound 21 match against traditional rivals Geelong (5 ,52 ). The average attendance across home games in Tasmania was 12,5 8, the highlight being ound v St ilda (15, 1).
ound tion
The Hawthorn ootball Club oundation plays a vital role in supporting the Club whilst it builds towards a prosperous future. ur goal is to be the leading Australian sporting club in the philanthropic space by developing a sustainable culture of philanthropy across the Hawthorn family.
Its objective is to ensure the Hawthorn ootball Club and its community survives and thrives today, tomorrow and always. The oundation has six pillars
Facility – Kennedy Community Centre At Hawthorn’s heart is the Kennedy family’s spirit of inclusion, of giving back, and of working together as a community. The Foundation’s vision is to create a world-class training and administration facility that is ours to own and incorporates fan and community expansion, integration and engagement.
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ound tion (continued)
Community The Foundation is committed to supporting the Club’s community pillars of Mental Health, Indigenous and Social Inclusion. It is committed to growing the community engagement programs which inspire and educate integrate and engage mentor, lead and support the community to ensure a better outcome not ust for Hawthorn supporters, but for everyone.
Innovation The Foundation is committed to leading through innovation both on and off the field through talent pathways, women’s football, e t eneration Academies and digital technologies.
Heritage The Foundation is committed to preserving and honouring the past so all Hawthorn supporters and the wider community have the opportunity to understand the role Hawthorn has played in shaping the Australian sporting landscape of today.
Endowment On field success doesn’t equal survival. The Foundation has established an endowment funding program to help safe-guard the Club for generations to come.
Bequests The Always Hawthorn e uest Club was formed to ensure that the Club remains strong and viable for generations to come, ensuring that future generations will e perience the same sense of oy and passion as those from yesterday and today. The Always Hawthorn e uest Club has 5 confirmed be uestors.
n 2018, the ublic Ancillary Fund received donations totalling 2,727, 70 and generated 8,537 in investment earnings. These contributions have assisted in increasing the funds of the ublic Ancillary Fund to 7,513,1 8 at 31 ctober 2018.
o unit
Hawthorn’s vision is to be a recognised industry leader in providing community programs which lead to meaningful outcomes and promote social change and inclusion.
Our aim is to provide programs and partnerships that deliver positive community impact, through the strength of the Club’s brand and players as role models within the community.
artnerships with key philanthropic, community, government and commercial organisations enable the Club to reach deeply into the community, particularly in relation to health, education and social disengagement.
Guiding principles for the Club’s community engagement help form decision making and ensure the Club and its partners remain true to its vision. All partnerships need to be effective with measurable outcomes to demonstrate their purpose. The programs and partnerships must have a shared value with high community impact and be focussed to ensure we deliver the greatest impact in the areas of most importance. ur community programs are tailored to meet the needs of the communities in which they are delivered but, most importantly, they are woven into the overall purpose and priorities of the Club and embedded into our every day.
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o unit (continued)
The Club’s strategic priority is to deliver significant programs and outcomes for: • Indigenous Australians • Mental Health • Social Inclusion
The Club recognises its social responsibility to engage in community activities and to this end is involved in a variety of activities nationally, in particular astern and South- ast Melbourne, Gippsland, Tasmania and the orthern Territory.
Hawthorn’s Indigenous Program continues to benefit from Epic Good Foundation’s philanthropic donation of $1 million over five years. This donation enables the Club’s vision of assisting in closing the gap in Indigenous health and education with partnerships that enable delivery of key programs. ey partnerships include the Indigenous iteracy Foundation, orawa Girls College and the ig iver Hawks.
The Club’s vision is for every Australian to have the knowledge of the necessary tools to tackle anxiety and depression so that they can help themselves and others on the road to recovery. The Club’s Beyond Blue partnership is into its 13th year with the eyond lue Cup now a permanent fi ture of the Hawthorn schedule.
Hawthorn is committed to social inclusion to empowering people of all abilities, gender and cultural background to collaborate, lead and create a sense of belonging. It works diligently to embrace the abilities of all people to create an integrated and inclusive environment. Highlights this year included the Club’s involvement in the National Inclusion Carnival in Tasmania and the launch of our very own heelchair Football team.
The Club’s broad contribution to Tasmania has been highlighted as the Hawks were named as a finalist in the 2018 Tasmanian Tourism Awards. This accolade is a strong endorsement of Hawthorn’s commitment to delivering a broad range of benefits to the Tasmanian people. hilst the Club delivered over , worth of community investment throughout in the areas of grass roots football, health, nutrition and literacy partnerships with the state government and a range of community organisations, the realisation of the significant impact to the tourism economy delivered by Hawthorn matches in aunceston may be news to many. It’s indicative of the multi-faceted, far reaching and innovative ways Hawthorn contributes to the people of Tasmania.
s useu
The Hawks Museum helps to tell the story of the Hawthorn Football Club. The museum highlights the people and events that have shaped the successful Club we know today. It ensures that the history, achievements and the ongoing development of the Hawthorn Football Club are preserved for future generations. The Hawks Museum actively embraces the achievements of the Club as a whole – past, present and future.
The Hawks Museum has en oyed another successful year in welcoming more than , visitors, including many from interstate and overseas. More than 650 people have joined or re-joined the ‘Friends of the Hawks Museum’ program and the year has seen the addition of thirteen new ‘Glenferrie Gold’ Life Patrons of the Hawks Museum, bringing the number of Life atrons to .
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s useu (continued)
Major projects included the expansion of the Best and Fairest Cabinet, which has allowed the display of generous new ac uisitions of trophies from players. An expansion of the Guernsey Chronology increased hanging space to accommodate at least eight more guernseys. This expansion presents a more complete narrative for the evolution of the Club’s guernsey.
The Museum is also nearing the conclusion of the Museums Australia e-Accreditation Program. This rigorous two-year process has ensured the Hawks Museum maintain its high standards and is the only Museum in the AFL to have this level of accreditation, a great credit to Peter Haby and achel Bradshaw.
i ni ic nt n es in t e t te o irs
In the opinion of the irectors there were no significant changes in the state of affairs of the Club, other than those disclosed in this report.
n iron ent re u tion
The ingley property owned by HFC Land is subject to environmental regulations and the Club actively manages its obligations in this respect.
The Club’s day to day operations are not subject to any significant environmental regulations under either Commonwealth or State legislation. However, the Board believes that the Club should be environmentally responsible and have an objective to be a leader within the AFL and sporting community generally.
ents u se uent to nce D te
ther than the matters discussed above, no matters or circumstances have arisen in the interval between the end of the financial year and the date of this report, including any item, transaction or event of a material and unusual nature likely, in the opinion of the irectors of the Club, to affect significantly the operations of the Club, the results of those operations, or the state of affairs of the Club in future years.
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nde ni ic tion nd nsur nce o icers nd uditors
The irectors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the Directors’ and Officers’ liability and legal expenses’ insurance contracts; as such disclosure is prohibited under the terms of the contract.
The Club has not during or since the end of the financial year in respect of any person who is or has been an auditor of the Club or a related body corporate
• indemnified or made any relevant agreement for indemnifying against a liability incurred as auditor including costs and expenses in successfully defending legal proceedings or • paid or agreed to pay a premium in respect of a contract insuring against a liability as auditor incurred for the costs or expenses to defend legal proceedings.
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e u i ic tions u ort o io perience D te ppointed esi ned
Directors
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e u i ic tions u ort o io perience D te ppointed esi ned
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The number of Directors’ meetings and number of meetings attended by each of the Directors of the Club during the financial e r ere Directors’ meetings e o Director ennett ( resident) n i e ( ice resident) r e D o ers e rist nson o n i e rer nden er
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o ern nce
in nce nd is n e ent o ittee ( )
The Club’s Finance and Risk Management Committee comprises: R Garvey (Chair), P Nankivell (Director), J Reeves, T Silvers, A lein in o n E ecu i es E ill nd O sel nde enden e bers ic ee s on l rior o e o rd meetings and is primarily responsible for reviewing the Club’s financial position and providing recommendations to the Board.
nte rit nd o p i nce o ittee ( )
The Club’s Integrity and Compliance Committee comprises: L Nolan (Chair), L Kristjanson (Director), T Silvers, C Pettyfor, J Burt E ecu i es C se uic rrell nde enden e bers ic ee s bi on l nd is ri ril res onsible or re ie in e in e ri nd co li nce re ul or re uire en s cross e Club
ro ine prin s oint enture ( )
e o rd o direc ors o C o inees d e n er co rises R r e C ir n i ell E uci uci irec ors il ers in M O ens E ecu i es e bo rd ee s bi on l o re ie nd ssess e o er ions o es ers o el nd En er in en Co le nd ro ide s r e ic direc ion
enned o unit entre o ittee ( )
The Club’s Kennedy Community Centre Committee comprises: P Nankivell (Chair), J Reeves, G Wright, T Silvers, T Gallina, K re er C e or E ecu i es e ue nde enden e ber ic ee s bi on l nd is ri ril res onsible or providing strategic direction in the Club’s relocation of its training and administration base to Dingley, and then providing reco end ions o e bo rd
eop e nd u ture o ittee ( )
The Club’s People and Culture Committee comprises: L Kristjanson (Chair), A Kaye (Director), J Reeves, J Burt, C Matthews, P e n Mill rd E ecu i es M cin re nde enden e ber ic ee s bi on l nd is ri ril res onsible or the review and strategic direction of the club’s people and culture structure and human resources function.
hawthornfc.com.au 16 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES 17 DIRECTORS’ REPORT (CONTINUED) FOR THE YEAR ENDED 31 OCTOBER 2018 Hawthorn Football Club Limited and its controlled entities Directors’ report (continued) For the year ended 31 October 2018 Operating and financial review (continued)
Football Sub Committee (FSC)
The Club’s Football Sub Committee comprises: R Vandenberg (Chair), J Reeves, G Wright, J Burt, A Clarkson, A Russell, D Carroll, R McCartney (Executives) which meets monthly and is responsible for overseeing the operations, list management and integrity of the football department.
Dare to be Different Committee (D2BDC)
The Club’s Dare to be Different Committee comprises: R Sali (Chair), P Nankivell (Director), J Reeves, T Silvers, A Klein, T Gallina, A Singh (Executives), B Harris, A Gregory, C Mills, M Berriman (Independent members) which meets bi‐monthly and is primarily responsible for reviewing the development and implementation of strategic business development initiatives, and ensuring initiatives are consistent with the Club's Strategic Plan.
History and Tradition Committee (H&TC)
The Club’s History and Tradition Committee comprises: A Kaye (Chair), J Burt, R Haas (Executives), D Harford, P Hudson, J Kennedy (Jnr), A Martello, B Sewell (Independent members) which meets bi‐monthly and is primarily responsible for reviewing and providing ongoing direction for the preservation of the Club’s history and traditions.
Foundation and Fundraising Committee (F&FC)
The Club’s Foundation and Fundraising Committee comprises: T Shearer (Chair), R Garvey (Directors), T Silvers, K Brewer (Executives), A Badger (Independent member) which meets quarterly and is primarily responsible for reviewing and providing strategic direction across all the Club's fundraising initiatives.
Capital Campaign Committee (CCC)
The Club's Capital Campaign Committee comprises: T Shearer (Chair), R Sali (Director), J Reeves, T Silvers, K Brewer (Executives), P Hudson, P Knights, S Crawford, S Paterson, C Karagounis, J Dicker, M Ralston (Independent members). This newly formed Committee will meet monthly and is primarily responsible for raising funds through donations to deliver the Kennedy Community Centre.
Other
Individual Club Directors chair meetings of these Board Sub Committees. The Club is represented on the Board of the HFC Foundation and Box Hill Hawks Ltd.
Lead Auditor’s Independence Declaration
The Lead Auditor’s Independence Declaration is set out on page 18 and forms part of the Directors’ report for the financial year ended 31 October 2018.
Signed in accordance with a resolution of the Board of Directors.
J G Kenne�, President R J Garvey, Director
Dated at Melbourne 13 November 2018
17
17 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 31 OCTOBER 2018
Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
To the Directors of Hawthorn Football Club Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Hawthorn Football Club Limited for the financial year ended 31 October 2018 there have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG Tony Romeo
Partner
Melbourne
13 November 2018
hawthornfc.com.au 18
18 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2018 t orn oot u imited nd its contro ed entities t tements o pro it or oss nd ot er compre ensi e income
or t e e r ended cto er onso id ted e u ote ontinuing oper tions Revenue , , , , , , , , Cost of sales ( , , ) ( , , ) ( , , ) ( , , ) Gross profit , , , , , , , ,
ther income , , , ,
Sponsorship, membership fundraising e penses ( , , ) ( , , ) ( , , ) ( , , ) mployee and player e penses ( , , ) ( , , ) ( , , ) ( , , ) Marketing e penses ( , , ) ( , , ) ( , ) ( , ) Depreciation amortisation ( , , ) ( , , ) ( , , ) ( , , ) enue management fees ( , ) ( , ) ( , ) ther football operations e penses ( , , ) ( , , ) ( , , ) ( , , ) ther e penses in respect to ordinary activities ( , , ) ( , , ) ( , , ) ( , , ) ( , , ) ( , , ) ( , , ) ( , , )
esu ts rom oper ting cti ities
Finance income , , , , Finance e penses ( , ) ( , ) et in nce income ( )
ro it e ore income t
Income ta e pense (p)
et pro it or t e e r
t er compre ensi e income
tems t t re or m e rec ssi ied su se uent to t e pro it or oss
Net change in fair value of available for sale investments , , , , ot ot er compre ensi e income or t e e r ot compre ensi e income or t e e r
ot pro it ttri ut e to
Members of awthorn Football Club , , , , , , , , Minority Interests , ,
ot compre ensi e income ttri ut e to
Members of awthorn Football Club , , , , , , , , Minority Interests , ,
The income statements are to be read in conjunction with the notes of the financial statements set out in pages to .
19 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2018 t orn oot u imited nd its contro ed entities t tements o c nges in e uit
or t e e r ended cto er inorit et ined ir ue ot onso id ted nterest e rnings reser e e uit pening balance November , , , , , ,
ot compre ensi e income or t e e r
Total other comprehensive income , ,
Profit for the period , , , , , Total comprehensive income for the year , , , , , ,
Minority uity Contribution Closing balance at ctober
pening balance at November , , , , , ,
ot compre ensi e income or t e e r
Fair value movement of available for sale financial assets , ,
Profit for the period , , , , , Minority uity Contribution Total comprehensive income for the year , , , , , ,
osing nce t cto er
inorit et ined ir ue ot mem ers u nterest e rnings reser e e uit pening balance November , , , , ,
ot compre ensi e income or t e e r
Total other comprehensive income , ,
Profit for the period , , , , Total comprehensive income for the year , , , , , Closing balance at ctober
pening balance at November , , , , ,
ot compre ensi e income or t e e r
Fair value movement of available for sale financial assets , ,
Profit for the period , , , , Total comprehensive income for the year , , , , , osing nce t cto er
The statements of changes in e uity are to be read in conjunction with the notes of the financial statements set out on pages to .
hawthornfc.com.au 20 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES STATEMENTS OF FINANCIAL POSITION FOR THE YEAR ENDED 31 OCTOBER 2018 t orn oot u imited nd its contro ed entities t tements o in nci position
s t cto er onso id ted e u ote urrent ssets Cash and cash e uivalents , , , , , , , , Trade other receivables , , , , , , , , Inventory , , , , ther , , , , ot current ssets
on urrent ssets Investments , , , , , , , , Investment property , , , , , , , , Property, plant e uipment , , , , , , , , Intangible assets , , , , , , Trade other receivables , , , , ther , , ot non current ssets ot ssets
urrent i i ities Payables , , , , , , , , Interest bearing loans borrowings , , , , mployee entitlements , , , , , , , , ther liabilities , , , , , , , , ot current i i ities
on urrent i i ities Payables , Interest bearing loans borrowings , , mployee entitlements , , , , ot non current i i ities ot i i ities et ssets
uit Reserves , , , , Minority interest (CSJ ) , , Retained profits , , , , , , , , ot e uit
The statements of financial position are to be read in conjunction with the notes to the financial statements set out on pages to .
21 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES STATEMENTS OF CASH FLOWS FOR t orn THE oot YEAR ENDED u imited 31 ndOCTOBER its contro ed 2018 entities t tements o c s o s
or t e e r ended cto er onso id ted e u ote s o s rom oper ting cti ities Cash receipts in the course of operations , , , , , , , , Cash payments in the course of operations ( , , ) ( , , ) ( , , ) ( , , ) et c s rom oper ting cti ities
s o s rom in esting cti ities Interest received , , , , Dividends received , , , , Payments for property, plant e uipment ( , , ) ( , , ) ( , ) ( , ) Deposits paid for gaming entitlements ( , ) ( , ) Transfer to Inter Company entity ( , , ) Li uidation of managed funds , , et c s used in in esting cti ities ( ) ( ) ( ) ( )
s o s rom in ncing cti ities Borrowing costs paid ( , ) ( , ) Proceeds from borrowings , Repayment of borrowings ( , ) ( , ) et c s used in in ncing cti ities ( ) ( ) et incre se (decre se) in c s c s e ui ents ( )
s nd c s e ui ents t o em er
s nd c s e ui ents t cto er
The statements of cash flows are to be read in conjunction with the notes to the financial statements set out on pages to .
hawthornfc.com.au 22 23 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTESHawthorn Football Club Limited and its controlled entitie TO THE CONSOLIDATED FINANCIALs STATEMENTS FORNotes to the consolidated financial statements THE YEAR ENDED 31 OCTOBER 2018 For the year ended 31 October 2018
1. Reporting entity The Hawthorn Football Club Limited (the ‘Club’) is a company domiciled in Australia. The financial report was authorised for issue by the Directors on 13 November 2018. The Club is a not for profit entity. The significant policies which have been adopted in the preparation of this financial report are set out below.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial report of the Group and the financial report of the Club are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (AASB‐RDR’s) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
(b) Basis of measurement Functional Currency The financial report is presented in Australian dollars.
It is prepared on the historical cost basis, except for financial instruments that are available for sale which are stated at fair value.
(c) Use of estimates and judgements The preparation of this financial report requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may be different from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Key estimates and judgements in the context of the preparation of the financial report include the estimation of the fair value and recoverable amount of certain assets, and calculation of provisions.
3. Significant accounting polices
The accounting policies set out below have been consistently applied to all periods presented in these consolidated financial statements, and have been applied consistently by group entities.
Where necessary, comparative information has been reclassified to achieve consistency in disclosure with current financial year amounts and other disclosures.
23
23 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES
NOTES t orn TO oot THE u CONSOLIDATED imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued) ( ) sis o onso id tion u sidi ries Subsidiaries are entities controlled by the group, such as CSJ and the Bo ill awks Football Club. Control e ists where the parent entity is e posed, or has rights to, variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. A parent entity has power over the subsidiary, when it has e isting rights to direct the relevant activities of the subsidiary. The relevant activities are those which significantly affect the subsidiary’s returns. The ability to approve the operating and capital budget of a subsidiary and the ability to appoint key management personnel are decisions that demonstrate that the group has the e isting rights to direct the relevant activities of a subsidiary.
Subsidiaries are included in the consolidated financial statements from the date control commences until the date control ceases. Where the group’s interest is less than 100 per cent, the interest attributable to outside shareholders is reflected in non controlling interests. The effects of all transactions between entities within the group have been eliminated.
In the Club’s financial statements, investments in subsidiaries are carried at cost, unless impaired.
oint rr ngements ssoci tes nd oint contro ed entities (e uit ccounted in estees)
Joint arrangements e ist when two or more parties have joint control. Joint control is the contractually agreed sharing of control of an arrangement, which e ists only when decisions about the relevant activities re uire the unanimous consent of the parties sharing control.
Associates are entities in which the Group holds significant influence. Significant influence is the power to participate in the financial and operating policy decisions of an entity but is not control or joint control. If the group holds per cent or more of the voting power of an entity, it is presumed that the group has significant influence, unless it can be clearly demonstrated that this is not the case. Significant influence can also arise when the group has less than per cent of voting power but it can be demonstrated that the group has the power to participate in the financial and operating policy decisions of the associate. Investments in associates are accounted for using the e uity method as described above.
The Club has no such investments.
( ) ropert p nt nd e uipment ned ssets Items of property, plant and e uipment are stated at cost or deemed cost less accumulated depreciation (see below) and impairment losses (see accounting policy (i)).
Where parts of an item of property, plant and e uipment have different useful lives, they are accounted for as separate items of property, plant and e uipment.
e sed ssets Leases in terms of which the Club assumes substantially all the risks and rewards of ownership are classified as finance leases, by comparison to operating leases, and are conse uently included as property, plant and e uipment with a corresponding liability for future payments. Lease payments are accounted for as described in accounting policy ( (o)).
hawthornfc.com.au 24 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES t orn TO oot THE u CONSOLIDATED imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t e YEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued)
u se uent costs The Club recognises in the carrying amount of an item of property, plant and e uipment the cost of replacing part of such an item hen that cost is incurred if it is probable that the future economic benefits embodied ithin the item ill flo to the consolidated entity and the cost of the item can be measured reliably. ll other costs are recognised in the statements of profit or loss and other comprehensive income as an e pense as incurred.
Depreci tion epreciation is charged to the statements of profit or loss and other comprehensive income over the estimated useful life of each part of an item of property, plant and e uipment. and is not depreciated.
The estimated useful lives for each class of asset in the current and comparative period are as follo s et od o depreci tion uildings 0 0 traight line uilding improvements 0 0 traight line lant and e uipment 0 0 traight line educing balance uilding leasehold improvements 0 0 traight line
(c) nt ngi e ssets ood i ood ill that arises upon the ac uisition of subsidiaries is included in intangible assets.
Subsequent measurement ood ill is measured at cost less accumulated impairment losses. In respect of e uity accounted investees, the carrying amount of good ill is included in the carrying amount of the investment, and an impairment loss on such an investment is not allocated to any asset, including good ill, that forms part of the carrying amount of the e uity accounted investee.
t er int ngi e ssets ther intangible assets that are ac uired by the roup and have finite useful lives are measured at cost less accumulated amortisation and accumulated impairment losses.
u se uent e penditure ubse uent e penditure is capitalised only hen it increases the future economic benefits embodied in the specific asset to hich it relates. ll other e penditure, including e penditure on internally generated good ill and brands, is recognised in the statement of profit or loss and other comprehensive income as incurred.
mortis tion mortisation is based on the cost of an asset less its residual value.
25 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES
NOTES t orn TO oot THE u CONSOLIDATED imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued) (c) nt ngi e ssets (continued) mortisation is recognised in the statements of profit or loss and other comprehensive income on a straight line basis over the estimated useful lives of intangible assets, other than good ill, from the date that they are available for use. The estimated useful lives for the current and comparative years are as follo s
ease premium 0yrs aming entitlements 10yrs
mortisation methods, useful lives and residual values are revie ed at each reporting date and ad usted if appropriate.
The C ominees purchased a further 10 gaming entitlements in 01 . The entitlements ill be amortised over the years the venture holds them.
(d) n estments inancial instruments held for trading are classified as current assets and are stated at fair value, ith any resultant gain or loss recognised in the statements of profit or loss and other comprehensive income.
ther financial instruments held by the Club are classified as being available for sale and are stated at fair value, ith any resultant gain or loss being recognised directly in e uity, e cept for impairment losses. When these investments are sold, the cumulative gain or loss previously recognised directly in e uity is recognised in statements of profit or loss and other comprehensive income. Where these investments are interest bearing, interest calculated using the effective interest method is recognised in the statements of profit or loss and other comprehensive income.
The fair value of financial instruments classified as held for trading and available for sale is their uoted bid price at the statement of financial position date.
inancial instruments classified as held for trading or available for sale investments are recognised derecognised by the Club on the date it commits to purchase sell the investments.
(e) n estment propert Investment property is held to earn rental income and for capital appreciation, ho ever is not for sale in the ordinary course of business, or used for administrative purposes. Investment property is measured at cost on initial recognition and depreciated over the asset’s useful life being 40 years.
Cost includes e penditure that is directly attributable to the ac uisition of the investment property. The cost of self constructed investment property includes the cost of materials and direct labour, other costs directly attributable to bringing the investment property to a or ing condition for their intended use and capitalised borro ing costs.
When the use of a property changes such that it is reclassified as property, plant and e uipment, its fair value at the date of reclassification becomes its cost for subse uent accounting.
(f) r de nd ot er recei es Trade and other receivables are stated at their amortised cost less impairment losses see accounting policy i .
hawthornfc.com.au 26 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES t orn TO oot THE CONSOLIDATED u imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued) (g) n entories nventories co prise clothing lub erchandise and food and beverage. ll inventories are carried at the lo er of cost and net realisable value. et realisable value is the esti ated selling price in the ordinary course of business less the esti ated costs of co pletion and selling e penses. ost of inventory is based on average cost and incorporates e penditure incurred in ac uiring the inventories and bringing the to their e isting condition and location.
( ) s ash and cash e uivalents in the balance sheet co prise cash at ban and on hand and highly li uid cash deposits ith short ter aturities and are readily convertible to no n a ounts of cash ith insignificant ris of change in value. he lub considers that the carrying value of cash and cash e uivalents appro i ate fair value due to their short ter to aturity.
(i) mp irment The carrying amounts of the Club’s assets, other than inventories (see accounting policy 3(g)) are reviewed at each state ent of financial position date to deter ine hether there is any indication of i pair ent. f any such indication exists, the asset’s recoverable amount is estimated. Goodwill and intangible assets with an indefinite useful life are tested annually for i pair ent.
n i pair ent loss is recognised henever the carrying a ount of an asset or its cash generating unit e ceeds its recoverable a ount. pair ent losses are recognised in the state ents of profit or loss and other co prehensive inco e unless an asset has previously been revalued in hich case the i pair ent loss is recognised as a reversal to the e tent of that previous revaluation ith any e cess recognised through the state ents of profit or loss and other co prehensive inco e.
Impairment losses recognised in respect of cash generating units (CGU’s) are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGU’s) on a pro-rata basis.
hen a decline in the fair value of an available for sale financial asset has been recognised directly in e uity and there is then ob ective evidence that the asset is i paired the cu ulative loss that had been recognised directly in e uity is then recognised in the state ents of co prehensive inco e even though the financial asset has not been derecognised. he a ount of the cu ulative loss that is recognised in the state ents of co prehensive inco e is the difference bet een the ac uisition cost and current fair value less any i pair ent loss on that financial asset previously recognised in the state ents of co prehensive inco e. air value less costs to sell is calculated using independent valuations.
The recoverable amount of the Club’s receivables carried at amortised cost is calculated as the present value of the esti ated future cash flo s discounted at the original effective interest rate i.e. the effective interest rate co puted at the initial recognition of these financial assets . eceivables ith a short duration are not discounted.
pair ent of receivables is not recognised until ob ective evidence is available that a loss event has occurred. ignificant receivables are individually assessed for i pair ent. pair ent testing of significant receivables that are not assessed as i paired individually is perfor ed by placing the into portfolios of significant receivables ith si ilar ris profiles and underta ing a collective assess ent of i pair ent. on significant receivables are not individually assessed. nstead i pair ent testing is perfor ed by placing non significant receivables in portfolios of si ilar ris profiles based on ob ective evidence fro historical e perience ad usted for any effects of conditions e isting at each state ent of financial position date.
27 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018
HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES t orn TO oot THE CONSOLIDATED u imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued)
The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. s the Club is a not for profit entity, value in use is determined with reference to the depreciated replacement cost of the asset, unless the asset generates independent cash flows in which case value in use is determined with reference to discounted future cash flows.
e ers s o imp irment Impairment losses are reversed when there is an indication that the impairment loss may no longer exist and there has been a change in the estimate used to determine the recoverable amount.
n impairment loss in respect of a receivable carried at amortised cost is reversed if the subse uent increase in the recoverable amount can be related ob ectively to an event occurring after the impairment loss was recognised.
n impairment loss in respect of an investment in an e uity instrument classified as available-for-sale is not reversed through the statements of comprehensive income.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
n impairment loss in respect of goodwill is not reversed.
( ) nterest e ring orro ings Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. ubse uent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between cost and redemption value being recognised in the statements of comprehensive income over the period of the borrowings on an effective interest basis.
( ) mp o ee ntit ements De ined contri ution super nnu tion unds bligations for contributions to defined contribution superannuation funds are recognised as an expense in the statements of comprehensive income as incurred.
ong er ice e e The provision for employee benefits for long service leave is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wages and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the rates attaching to the high uality corporate bond rate at balance date which most closely match the terms of maturity of the related liabilities. The unwinding of the discount is treated as a long service leave expense.
s a result of a federally certified long service leave agreement between the players and the , the Club has no obligation for long service leave in respect of players.
hawthornfc.com.au 28 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES t orn TO oot THE CONSOLIDATED u imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued)
i i ities or ges s ries nd nnu e e mployee ene its or ages salaries and annual leave that are expected to e settled ithin months o the reporting date represent present obligations resulting from employees’ services provided up to the reporting date. The provisions are calculated at undiscounted amounts ased on remuneration rates the lu expects to pay including on costs such as or ers compensation insurance and payroll tax on accumulating non monetary ene its are expensed ased on the net marginal cost to the lu as the ene its are ta en y the employees
( ) ro isions A provision is recognised in the statement o inancial position hen the lu has a present legal or constructive o ligation as a result o a past event and it is pro a le that an out lo o economic ene its ill e re uired to settle the o ligation rovisions are determined y discounting the expected uture cash lo s at a pre tax rate that re lects current mar et assessments o the time value o money and here appropriate the ris s speci ic to the lia ility
(m) r de nd ot er p es rade and other paya les are stated at their amortised cost rade paya les are non interest earing and are normally settled on day terms
(n) e enue evenues are recognised at air value o the consideration received net o the amount o goods and services tax paya le to the Australian axation ice A o revenue is recognised i there are signi icant uncertainties regarding recovery o the consideration due the costs incurred or to e incurred cannot e measured relia ly there is a ris o return o goods or there is continuing management involvement ith the goods
es e enue ales revenue rom oot all activities comprises revenue earned rom the sales o mem erships corporate mar eting the sale o merchandise gate receipts and A distri utions em ership donations corporate mar eting and merchandise income are all recognised as earned hilst gate receipts and A distri utions are recognised as received
distri ution nd pri e mone A distri ution and pri e money revenue is recognised as it is received
Don tions onations are recognised at the air value o the contri ution received or receiva le
em ers ip nd m tc d re enue em ership revenue is recognised throughout the duration o the A ome and A ay season atch day revenue is recognised at the conclusion o each A home game
erc ndise re enue erchandise revenue is recognised as the merchandise is provided to the customer
r eting re enue ar eting revenue is recognised in proportion to the state o completion o the transaction at alance date in accordance ith the terms and conditions o the sponsorship contract
29 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES t orn TO oot THE CONSOLIDATED u imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued) ccommod tion re enue ccommodation revenue is recognised as it is provided.
ming r nd istro re enue ales comprise revenue earned net of returns discounts and allo ances from gaming machines and provisions of food and beverages. aming bar and bistro revenue is recognised as they are provided.
(o) penses per ting e se p ments ayments made under operating leases are recognised on a straight line basis over the term of the lease.
in nce e se p ments inimum lease payments are apportioned bet een the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
(p) ncome o income ta is payable as the lub is an e empt sporting organisation in accordance ith ection of the ncome Ta ssessment ct .
( ) oods nd ser ices t evenues e penses and assets are recognised net of the amount of goods and services ta T e pect here the amount of T incurred is not recoverable from the T . n these circumstances the T is recognised as part of the cost of ac uisition of the asset or as part of an item of the e pense.
eceivables and payables are stated ith the amount of T included.
The net amount of T recoverable from or payable to the T is included as a current asset or liability in the statement of financial position.
ash flo s are included in the statement of cash flo s on a gross basis. The T components of cash flo s arising from investing and financing activities that are recoverable from or payable to the T are classified as operating cash flo s.
(r) egment reporting The lub operates solely as a constituent member of the ustralian ootball eague.
(s) in nce re enue nd e penses inance revenue comprises interest revenue on funds invested dividend revenue gains on the disposal of available for sale financial assets gains on e tinguishment of financial liabilities and changes in the fair value of financial assets. inance e penses comprise interest e pense on borro ings changes in the fair value of financial assets and impairment losses recognised on financial assets.
(t) nges in ccounting po icies cept for here identified belo the roup has consistently applied its accounting policies for the years presented in these consolidated financial statements.
hawthornfc.com.au 30 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES
NOTES t orn TO oot THE u CONSOLIDATED imited nd its contro ed FINANCIAL entities STATEMENTS FOR otes THE to t eYEAR conso id ted ENDED in nci 31 OCTOBER st tements 2018 or t e e r ended cto er
t tement o signi ic nt ccounting po icies (continued)
(u) e ccounting st nd rds nd interpret tions not et dopted
in nci nstruments ( ) in nci nstruments ( )
inancial nstruments becomes mandatory for the roup s financial statements for the period beginning on or after anuary and could change the classification and measurement of financial assets and the measurement of impairment on financial instruments. The roup plans to adopt this standard in and ill elect to maintain the current policy ith nil financial statement impact.
e enue rom ontr cts it ustomers
evenue from ontracts ith ustomers hich modifies the determination of hen to recognise revenue and ho much revenue to recognise and becomes applicable for the period beginning and or after anuary . The core principle is that an entity recognises revenue to depict the transfer of promised goods and services to the customer of an amount that reflects the consideration to hich the entity e pects to be entitled in e change for those goods or services. The roup does not plan to adopt this standard early and the e tent of the impact has not been determined.
e ses
eases as issued in ebruary and is mandatory from anuary . The standard is li ely to result in further leases being recognised on the balance sheet. The roup does not plan to adopt this standard early and the e tent of the impact has not been determined.
31 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED
AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR t orn THE YEAR oot ENDED u imited 31 ndOCTOBER its contro ed 2018 entities otes to t e conso id ted in nci st tements or t e e r ended cto er
e enue
onso id ted e u per ting re enue distribution and pri e money embership income atch day income ar eting income erchandise income aming income ar and bistro income ccommodation income onations and special fundraising ental income ot oper ting re enue on operating revenue ot re enue ther income
ot re enue nd ot er income
oundation ublic ncillary und received donations of . m to ards its ingley facility pro ect during the year . m .
in nce income nd e pense nterest income on ban deposits ividend income from available for sale investments et profit loss on disposal of inance ncome
nterest e pense inance e pense et in nce income ( )
hawthornfc.com.au 32 HAWTHORN FOOTBALL CLUB LIMITED
AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR t orn THE YEAR oot ENDED u imited 31 OCTOBER nd its contro ed 2018 entities otes to t e conso id ted in nci st tements or t e e r ended cto er
s nd c s e ui ents onso id ted e u ash on hand ash at ban hort term deposit
r de nd ot er recei es urrent Trade receivables ther debtors
on urrent mount receivable from related parties
Loan to subsidiary – CSJV Loan to subsidiary – CSFT Loan to subsidiary – HFC Land
n entor urrent nventory
t er ssets repayments urrent repayment on urrent
n estments on urrent uity securities managed funds
These investments are made up of Term Deposits and Equities which are invested in line with the Club’s investment policy.
33 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR t orn THE YEAR oot ENDED u imited 31 OCTOBER nd its contro ed 2018 entities otes to t e conso id ted in nci st tements or t e e r ended cto er
n estment ropert onso id ted e u ost alance at ovember cquisitions Disposals alance at ctober
Depreci tion alance at ovember Depreciation char e for the year alance at ctober
rr ing mounts t ovember t ctober
nvestment property is property held either to earn rental income or for capital appreciation or for both but not for sale in the ordinary course of business use in the production or supply of oods or services or for administrative purposes
nvestment property comprises the ymnasium at averley ar which is leased to a third party under commercial leasin terms and conditions ncluded in investment property is land totallin which is not depreciated
hawthornfc.com.au 34 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2018 t orn oot u imited nd its contro ed entities otes to t e conso id ted in nci st tements or t e e r ended cto er
ropert p nt nd e uipment onso id ted reconci i tion nd ui dings nt nd ui ding ot ui ding e uipment e se o d mpro ements impro ements ost alance at ovember cquisitions Disposals alance at ctober
Depreci tion alance at ovember Depreciation amortisation char e for the year Disposals alance at ctober
rr ing mounts t ovember t ctober
u reconci i tion nd ui dings nt nd ui ding ot ui ding e uipment e se o d mpro ements impro ements ost alance at ovember cquisitions Disposals alance at ctober
Depreci tion alance at ovember Depreciation amortisation char e for the year Disposals alance at ctober
rr ing mounts t ovember t ctober
The averley ar land buildin s and oval are sub ect to certain usa e and disposal restrictions
35 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR t orn THE YEAR oot ENDED u imited 31 nd OCTOBER its contro ed 2018entities otes to t e conso id ted in nci st tements or t e e r ended cto er
nt ngi e ssets ming onso id ted reconci i tion ood i e se premium ot entit ements alance at ovember cquisitions Disposals alance at ctober
mortis tion nd imp irment alance at ovember mortisation char e for the year alance at ctober
rr ing mounts t ovember t ctober
ming u reconci i tion ood i e se premium ot entit ements alance at ovember cquisitions Disposals alance at ctober
mortis tion nd imp irment alance at ovember mortisation char e for the year alance at ctober
rr ing mounts t ovember t ctober
e se premium
s part of commercial arran ements in respect to the acquisition of the est aters Hotel Entertainment Comple in the CSJV entered into an a reement to pay m as a lease premium for access to the site The premium is amortised over the 40 years of the joint venture’s rental option period.
hawthornfc.com.au 36 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR t orn THE YEAR oot ENDED u imited 31 OCTOBER nd its contro ed 2018 entities otes to t e conso id ted in nci st tements or t e e r ended cto er
es
onso id ted e u urrent rade aya les 0 4 0 0 ther reditors and a ruals 4 4 00 4 on current ther reditors and a ruals 0 0
nterest e ring i i ities
onso id ted e u urrent Bank loan – secured* 0 000 000 000 0 000 000 000
on current Bank loan – secured* 4 000 4 000
n o n n 0 4 ominees refinan ed the e istin an loan and used the funds to e tin uish the spe ial rent lia ility. eneral se urity interest e ists over the assets and underta in of ominees ty td. nterest is har ed on these loans at fi ed and varia le rates. he loan alan e at st to er 0 totalled . m. he an loan is due to mature durin e ruary 0 and mana ement are finalisin ne otiations relatin to the fa ility and have re eived indi ative offers from t o an s hi h are urrently ein onsidered.
37 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR t orn THE YEAR oot ENDED u imited 31 nd OCTOBER its contro ed 2018 entities otes to t e conso id ted in nci st tements or t e e r ended cto er
mp o ee pro isions
onso id ted e u urrent ro s on or annual lea e ro s on or lon ser ce lea e on current ro s on or lon ser ce lea e
De ined contri ution super nnu tion unds e lu and rou akes con r u ons o a de ned con r u on su erannua on und e a oun reco n sed as an e ense as lu and rou or e nanc al ear ended c o er
t er i i ities urrent nearned re enue
e lu as unearned re enue rela n o e ers s and re a d cor ora e unc on cke sales
hawthornfc.com.au 38 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2018 t orn oot u imited nd its contro ed entities otes to t e conso id ted in nci st tements or t e e r ended cto er
ommitments
onso id ted e u ( ) per ting e se commitments e ses s essee on cancella le o era n lease ren als are a a le n one ear Be een one and e ears ore an e ears
ur n e ear as reco n sed as an e ense n e s a e en s o ro or loss and o er co re ens e nco e n res ec o o era n leases on er o era n lease co en s rela e o re a l ren al a ree en s n lace or e es a ers n er a n en o le and e a erle ardens enue
e rou as lon er o era n lease co en s n e n c e rou as a n eres rela n o a ren al a ree en co enc n n ece er a e es a ers n er a n en o le e rou as ncluded e ull a oun o CSJV’s operating lease commitments in the above disclosures.
n u us a lease ar a on as s ned n res ec o an acco oda on e ans on e end n e curren lease o on o s o c all co enced n ul en e acco oda on e ans on as co le e
( ) er commitments
ue o e con rac er s ar n cons dera l a on s la ers s no rac cal o rel a l easure e u ure co en s under player contracts. The Club will continue to comply with the prescribed AFL’s Total Player Payments limits.
(c) pit commitments
The club’s capital commitments as at 31 October 2018 were $10,849,245 (2017: $0) which relate to the gaming entitlements to ake e ec ro o e clu as re u red o a l and ake a de os o ards e a n en le en s dur n e nanc al ear o s de os s class ed as a re a en a no e
39 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 HAWTHORN FOOTBALL CLUB LIMITED AND ITS CONTROLLED ENTITIES 40 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FORHawthorn Football Club Limited and its controlled entities THE YEAR ENDED 31 OCTOBER 2018 Notes to the consolidated financial statements For the year ended 31 October 2018
19. Related parties
Transactions with Directors
During the year a number of the Directors purchased Club membership packages, finals tickets, attended Club functions, made donations and contributed towards fundraising auctions. It's the clubs policy the terms and conditions of the transactions with the Directors and their Director related entities were no more favourable than those available, or which might be reasonably expected to be available, on similar transactions to non‐Director related entities on an arm’s length basis.
Key management personnel compensation
The key management personnel compensation included in employee and player expenses is as follows:
Consolidated The Club 2018 2017 2018 2017 $$ $ $ Salaries and incentives 2,791,151 2,190,190 2,791,151 2,190,190
Other related parties Amounts receivable from other related parties are shown in note 7 of these financial statements.
The Club has a related party receivable totalling $2,870,063 (2017: $2,870,063) with CSFT, a wholly owned subsidiary. The amount is not repayable within twelve months, is non interest bearing and is unsecured.
The Club has a related party receivable totalling $3,246,021 (2017: $3,246,021) with CSJV of which it owns a 73% interest. The amount is not repayable within twelve months, is non interest bearing and is unsecured.
The Club also made operating payments totalling $502,500 (2017: $734,307) to the BHHFC. These payments have been eliminated in the consolidated financial statements.
The Club has a related party receivable totalling $8,596,564 (2017: 8,186,548) with HFC Land Trust, a wholly owned subsidiary. The amount is not repayable within twelve months, is non interest bearing and is unsecured.
40 hawthornfc.com.au 40 HAWTHORN FOOTBALL CLUB LIMITED 41 AND ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS t orn oot u imited nd its contro ed entities FOR otes THE to t e YEAR conso id ted ENDED in nci 31 st tements OCTOBER 2018 or t e e r ended cto er
ontri uted e uit nd reser es awthorn Football Club Limited is a company limited by guarantee only and there ore does not have share capital. The amount capable o being called up only in the event o , and or the purpose o , the winding up o the Club is limited to the outstanding annual membership fee per member in line with section 2a of the Club’s constitution.
The air value reserve comprises the cumulative net change in the air value o available or sale inancial assets, until the investments are de recognised or impaired.
roup entities
The Club presents consolidated in ormation which comprises the Club, FC CSFT, FC, FC Foundation including the Public Ancillary Fund and FC Land.
The Foundation is the trustee o FC Foundation (Public Ancillary Fund), the trust being established on 10 arch 201 .
The Club is the sole unit holder o FC Land Trust. FC Land Pty Ltd is the trustee, which became a subsidiary on 8 ay 201 .
The Club is the sole unit holder of CSFT. The CSFT holds the Club’s interest in the CSJV, which became a subsidiary on 11 October 2010.
hile the Club does not hold an ownership interest in FC, the Club is deemed to govern the inancial and operating policies o FC, and conse uently the Club is re uired to consolidate this entity.
ound tion The FC Foundation actively continued its role o providing the Club with access to income and capital or speci ic pro ects which may not be otherwise funded from normal profits or reserves. HFC Foundation Nominees Pty Ltd (“Foundation”) acts as nominee or the FC Foundation and is primarily responsible or its operation and governance. The Club owns all o the shares in ominees and one of its nine Directors are currently Directors of the Club. The Foundations’ relationship with the Club and its responsibilities are governed by both a charter and nominee agreement. The Foundation’s financial operations and position are included within the Club’s financial statements.
u se uent e ents o other matters or circumstances have arisen since 31 October 2018 that will signi icantly a ect, or may signi icantly a ect, the operations o the group, the results o the operations, or the state o a airs o the group in subse uent years.
t er in orm tion egistered o ice: 3 2 Stadium Circuit, ulgrave, Victoria, Australia 3170 awthorn Football Club Limited is incorporated and domiciled in Australia, is a company limited by guarantee.
41
41 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 42
Directors’ declaration In the opinion of the Directors of Hawthorn Football Club Limited (“the Club”) and its controlled entities:
(a) the financial statements and notes, set out on pages 19 to 41, are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the financial position of the Club and the Group as at 31 October 2018 and of their performance, as represented by the results of their operations and their cash flows, for the year ended on that date; and
complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations (ii) Regulations 2001; and
(b) there are reasonable grounds to believe that the Club will be able to pay its debts as and when they become due and payable.
Dated at Melbourne this 13th day of November 2018.
Signed in accordance with a resolution of the Directors:
J G Kennett President
R J Garvey Director
42
hawthornfc.com.au 42
Independent Auditor’s Report
Independent Auditor’s Report
Independent To the members Auditor’s of Hawthorn Report Football Club Limited To the members of Hawthorn Football Club Limited
To theOpinion members of Hawthorn Football Club Limited OpinionWe have audited the Financial Report of The Financial Report comprises: Hawthorn Football Club Limited (the “Club”). We have audited the Financial Report of The Financial• Statements Report of comprises:financial position as at 31 October OpinionHawthornIn our Football opinion, Club the Limitedaccompanying (the “Club”). Financial 2018; Report of the Club is in accordance with the • Statements of financial position as at 31 October • Statements of profit or loss and other comprehensive WeIn our have Corporationsopinion, audited the the accompanyingAct Financial 2001, including: Report Financial of The2018; Financial Report comprises: Report of the Club is in accordance with the income, Statements of changes in equity, and Hawthorn Football Club Limited (the “Club”). • Statements of profit or loss and other comprehensive Corporations• giving Act a true 2001 and, including: fair view of the Club's and• StatementsStatements of financial of cash position flows for as the at 31year October then ended; In our theopinion, Group’s the accompanyingfinancial position Financial as at 31 October2018;income, Statements of changes in equity, and • Notes including a summary of significant accounting Report• giving2018 of a truethe and Club and of theirfairis in view financialaccordance of the performance Club's with the and for theStatements of cash flows for the year then ended; the Group’s financial position as at 31 October • Statementspolicies; of and profit or loss and other comprehensive Corporationsyear ended Act 2001on that, including: date; and • Notes including a summary of significant accounting 2018 and of their financial performance for the income, Statements of changes in equity, and policies;• Directors' and Declaration. •year giving ended• complyinga true on andthat with fairdate; view Australian and of the AccountingClub's and Statements of cash flows for the year then ended; the Group’s financial position as at 31 October Standards - Reduced Disclosure Requirements• NotesDirectors' The including Group Declaration. consistsa summary of theof significant Club and theaccounting entities it 2018• complying and of theirwith Australianfinancial performance Accounting for the and the Corporations Regulations 2001. policies;controlled and at the year-end or from time to time during yearStandards ended - onReduced that date; Disclosure and Requirements The Groupthe financial consists year. of the Club and the entities it and the Corporations Regulations 2001. •controlled Directors' at Declaration. the year-end or from time to time during • complying with Australian Accounting the financial year. Standards - Reduced Disclosure Requirements The Group consists of the Club and the entities it and theBasis Corporations for opinion Regulations 2001. controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit Basisevidence Ourfor we opinionresponsibilities have obtained under is sufficient those standards and appropriate are further to provide described a basis in the for Auditor’s our opinion. responsibilities for the audit of the Financial Report section of our report. WeOur conductedresponsibilities our audit under in those accordance standards with are Australian further describedAuditing Standards in the Auditor’s. We believe responsibilities that the audit for the evidenceaudit ofWe the weare Financial haveindependent obtained Report of issection the sufficient Group of our and report. appropriateClub in accordance to provide with a basisthe Corporations for our opinion. Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for OurWe areresponsibilitiesProfessional independent Accountants under of the those Group (thestandards and Code) Club arethat in accordancefurther are relevant described with to ourthe in audittheCorporations Auditor’s of the Financial responsibilitiesAct 2001 Report and the in for Australia. ethical the We auditrequirements ofhave the fulfilled Financial of the our Accounting Report other sectionethical Professional responsibilitiesof our report. and Ethical in accordance Standards with Board’s the Code. APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We Wehave are fulfilled independent our other of ethicalthe Group responsibilities and Club in inaccordance accordance with with the the Corporations Code. Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We Other Information have fulfilled our other ethical responsibilities in accordance with the Code. Other Information Other Information is financial and non-financial information in Hawthorn Football Club Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are Other responsibleInformation foris financial the Other and Information. non-financial information in Hawthorn Football Club Limited’s annual reportingOther Information which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsibleOur opinion for the on Other the FinancialInformation. Report does not cover the Other Information and, accordingly, we do not Other expressInformation an audit is financial opinion and or anynon-financial form of assurance information conclusion in Hawthorn thereon. Football Club Limited’s annual Ourreporting opinion which on the is provided Financial in Report addition does to thenot Financcover tialhe Report Other Informationand the Auditor’s and, accordingly, Report. The we Directors do not are responsibleexpress an audit for the opinion Other or Information. any form of assurance conclusion thereon. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.
KPMG, an Australian partnership and a member firm of the KPMG Liability limited by a scheme approved under network of independent member firms affiliated with KPMG Professional Standards Legislation. 43 International Cooperative (“KPMG International”), a Swiss entity. KPMG, an Australian partnership and a member firm of the KPMG Liability limited by a scheme approved under network of independent member firms affiliated with KPMG Professional Standards Legislation. 43 International Cooperative (“KPMG International”), a Swiss entity.
KPMG, an Australian partnership and a member firm of the KPMG Liability limited by a scheme approved under network of independent member firms affiliated with KPMG Professional Standards Legislation. 43 HAWTHORN43 FOOTBALL CLUBInternational ANNUAL Cooperative FINANCIAL (“KPMG International”), REPORT a Swiss 2018 entity.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for: • preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001; • implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and • assessing the Group and Club's ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Club or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is: • 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. They 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. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our Auditor’s Report.
KPMG Tony Romeo
Partner
Melbourne
13 November 2018
hawthornfc.com.au 44
44
ppendi ound tion eport
ngaging meaningfully with the Hawthorn Family will be central to achieving our vision to be the leading ustralian sporting club in the philanthropic space by developing a sustainable culture of philanthropy. Si fundraising pillars underpin the wor of the Hawthorn Football Club Foundation facilities, community, innovation, heritage, future fund and be uests.
The Foundation will play a significant role in bringing the ennedy Community Centre to life. The centre will provide the club and the community with state of the art facilities to educate, plan, prepare and e ecute an integrated grass roots through to elite performance program with a ‘one club’ approach. I have always said that fundraising is the ultimate team sport, and this transformational pro ect will re uire the support of our entire community as we loo to bring it to life.
The Foundation also enables the Club to reach out and engage with the community. Sport is a powerful facilitator and conduit to unifying people and to building strong, healthy and safe communities.
s a club, we want to provide community programs which lead to meaningful outcomes that promote social change and inclusion. Partnerships with ey philanthropic, community, government and commercial organisations enable the club to reach deeply into community, particularly in the areas of health, education, social disengagement and inclusion. The club’s strategic priority is to deliver significant programs which deliver positive outcomes in the areas of ental Health and Social nclusion, and our commitment to the welfare of indigenous communities is another focus.
I’d like to thank the Epic Good Foundation for its ongoing support of our Indigenous program. We are e tremely grateful for the contribution the Foundation continues to ma e in helping close the gap by driving ongoing opportunities to create sustainable social change in indigenous communities nationally.
n the competitive FL landscape we need to ensure we are committed to leading through innovation, both on and off the field. The Foundation will play a ey role in identifying programs and opportunities within our VFL program and the Ne t eneration cademy.
mportantly, the Foundation will ensure we preserve and honour the past so all Hawthorn supporters and the wider community have the opportunity to understand the role Hawthorn has played in shaping the ustralian sporting landscape. e are also committed to providing the club with a reliable and growing income stream through our ndowment Fund.
Bequests from members of the Hawthorn Family will continue to play a critical role in shaping our club’s future. This year we were fortunate to receive a be uest totalling 1 , . These members of our community had both the foresight and the generosity of spirit to invest in the future of their club.
Foundation supporters and their families en oyed an array of functions throughout the year. These functions allowed Foundation members to get to now each other, and provided an avenue for the club to than them for their support. e love these opportunities to get Hawthorn people and their families together to celebrate all that we love about the club.
The information contained in this ppendi does not form part of the audited statutory financial report of the Club for the year ended 1 October 2 1 . 1 t has been prepared solely for the information of members and report users.
45 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018 eople are the most important ingredient of the Foundation. The Foundation is built upon the work ethic and values of great people who add significant credibility and respect to our vision and our ob ectives. The ongoing involvement of our Foundation atron and mbassadors is fundamental to our success. Ian icker Graham rthur avid arkin eter Hudson eter nights and iam hiels all give their time and support without question. We acknowledge their ongoing commitment and thank them for their passion loyalty and support.
n behalf of the lub I take this opportunity to thank my fellow Foundation irectors for their contribution over the year oug Battersby hris oigt cott atterson Geoff ammons Geraldine Farrell aria ui Brad Harris and Ian Fullagar have all welcomed me to the team and played their part in leading the way. I also would like to acknowledge the commitment made by Kerrie Brewer and her office team who ‘ride the bumps with a grin’ and understand better than most that ‘teamwork is the thing that talks.’
I have saved the most important thank you for last. Thank you for investing so generously in your club. Thank you for your ongoing generosity and thank you for your loyalty. Together I believe we can achieve an even brighter future for the Hawthorn Football lub.
our club. ne for ll. lways.
T hearer Director t orn oot u Chairman – Hawthorn Football Club Foundation
hawthornfc.com.au 46 NOTES:
47 HAWTHORN FOOTBALL CLUB ANNUAL FINANCIAL REPORT 2018