TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED

ANNUAL REPORT 2017/2018 2 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED CONTENTS

NOTICE OF ANNUAL GENERAL MEETING 5 PRESIDENT’S REPORT 6 CEO’S REPORT 8 FINANCIAL REPORT YEAR ENDED 30 JUNE 2018 12 STATEMENT OF COMPREHENSIVE INCOME 15 STATEMENT OF FINANCIAL POSITION 16 STATEMENT OF CASH FLOWS 17 STATEMENT OF CHANGES IN EQUITY 18 NOTES TO THE FINANCIAL STATEMENTS 19 INFORMATION PROVIDED UNDER THE GAMING MACHINE ACT 2004 (ACT) 28

2017/2018 ANNUAL REPORT 3

NOTICE OF ANNUAL GENERAL MEETING

Notice is given to members that the 40th Annual General Meeting of Tuggeranong Valley Rugby Union and Sports Club Limited will be held at:

Place: Town Centre Vikings Rowland Rees Crescent GREENWAY ACT 2900 Date: Wednesday, 19 September 2018 Time: 7.00pm (doors will be locked at this time)

Agenda:

1. Welcome and Apologies 2. Members in Attendance 3. Confirmation of the Minutes of the 39th Annual General Meeting held on 20 September 2017 4. Business Arising from the 2017 Annual General Meeting Minutes 5. Presentation of the Annual Report 6. Presentation of the Finance Reports and Balance Sheets 7. Auditor’s Report 8. Ordinary Resolutions: i. Adoption of the Audited Financial Report for 2017/2018 ii. Election of Directors for 2018/19 iii. Appointment of the Auditor iv. Fixing of the Auditor's remuneration 9. General Business

2017/2018 ANNUAL REPORT 5 PRESIDENT’S REPORT

On behalf of the Board of Directors, it is with pleasure region. Our partnership is not just about raising much that I provide to you the Vikings Group Annual Report needed funds but also to raise the awareness of the for the period ending 30 June, 2018. A modest end range of services that provide great benefit to the of year financial result of $0.151m is indicative of the community. We are very proud to be working with environment in which the Club industry operates. The Marymead over the next 12 months. Board has embarked on a Strategic Plan that aims to We are also very proud to continue our commitment ensure that our business is sustainable and provides to local sport and community organisations. This opportunity to diversify and grow over time. The Board year we have contributed some $2 million to support acknowledges the pressures within the industry and sporting clubs, athletes, community groups and understands that, in conjunction with strategy, we the associated activities that they are involved will also continue to focus on reducing overheads with. The focus on Community Contributions by and better asset utilisation toward improved revenue Government has provided some uncertainty for the outcomes. We will also look to implementing future of how Vikings continues this support. It was strategies to improve patronage through marketing, encouraging to see the level of support from our developing hospitality services to our Members and sporting and community organisations at the recent guests, and improved Club facilities. information session outlining the potential impact of reduced future funding through this Scheme. The With this in mind, our Clubs continue to be busy Board and management continue to have a strong centres of activity. In particular, this year saw us focus on providing support to those organisations launch the refurbished Erindale Club. The Cookery and we will inform our Membership of the impacts and Brick & Basil have been standout performers of proposed changes to the Scheme through our and feedback from members and guests has been regular publications and sports and community clubs very supportive in identifying their enjoyment of the meetings in the coming months. various dining options now available without having to leave Tuggeranong. The outdoor beer garden, gelato The local rugby season has concluded with Vikings bar and especially the kids areas have been very Rugby taking out the Club Championship and being well received. Our continued focus is to provide our represented across all six Grades on Grand Final Day. Members and guests with modern, vibrant and family A fantastic effort culminating in three Premierships in friendly facilities across all of our Clubs. We welcome 1st Grade, Colts and Womens. Congratulations to your feedback towards improving these aspects of our the Rugby Committee, Head Coach Nick Scrivener, business. players, coaches and support staff on a successful season. This past year has seen Vikings raise over $60,000 for our second charity partner OzHarvest Canberra. After a successful season in 2017 where they finished We are thankful that we have been able to raise Minor Premiers, the Canberra Vikings kick off their awareness of the activities of OzHarvest during this 2018 campaign in the National Rugby Championship year. It has been a great pleasure working with such with an exciting Grand Final rematch against a fantastic organisation doing so many great things Queensland Country at Viking Park. The team has a in our community. In 2018, we are looking forward great representation from local Clubs and community to working with Marymead as our new Charity of the support is vital in what is sure to be another successful Year. Marymead is synonymous with the work they do season. We wish the team all the best as they take in providing support services to children, young people on some of the country’s best established and up and and their families in Canberra and the surrounding coming players.

6 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED PRESIDENT’S REPORT CONT.

Vikings Group CEO Anthony Hill, senior management and staff have worked tirelessly to provide a warm and enjoyable experience within our Clubs for our Members and guests. To be awarded the 2017 ACT Medium Employer of the Year is fantastic recognition for the ongoing programs that contribute to making Vikings an employer of choice. We thank our well trained, enthusiastic and dedicated team for another great year. Whilst it has been a busy year, the coming 12 months present some significant challenges to our business. It is fortunate that we have a stable and strong Board to meet these challenges and I thank them for their continued support. Finally, thank you to our Members for your continued support by coming along to any one of our Clubs. Vikings exists for its members and we hope to see you continuing to enjoy our hospitality as we farewell the cold and head into the warmer months.

David Assenheim President 2018

2017/2018 ANNUAL REPORT 7 CEO’S REPORT

Leading an organisation like Vikings Group is an room will provide access to someone that can help. It experience like no other. Each day I get to work with is an initiative we are proud of and complements the talented people trying to achieve great things in an harm minimisation initiatives already in place at Vikings. environment that is fresh, evolving and challenging. We have a Board that embraces and champions positive As mentioned, the last round of venue improvements change, and that is evident in our achievements. We was completed at the Erindale Club this year. I am have a future that we are in control of and despite extremely pleased with the outcome. Vikings Group the hurdles placed in our way we are determined to boasts four venues that are at a contemporary remain the Club our Members expect us to be. standard that we hope meets our Members’ wants and needs. Erindale Vikings now has a choice of three I would like to start by reinforcing that the foundations dining options, a new lounge area and entertainment of your Club are strong. Despite our current facilities. The addition of the Italian restaurant at challenges, I believe that the underlying business Erindale Vikings has been an overnight success and so strengths and our focus on managing for our future will too the fresh new bistro. If you haven’t already, please continue to strengthen your Club as we move through come down and enjoy the hospitality of our team at these uncertain times. Erindale in the best new Club in town. The past 12 months has seen a raft of regulatory The completion of the Erindale refurbishment is part change sweep through the ACT Club Industry. In of our ethos of continual improvement. We are fully particular further restrictions on how our Members committed to making our Members and their guests can access their money, changes to the Community experience in our clubs memorable for all the right Contributions scheme, a hand back of poker reasons. machines and, most recently, a levy placed upon those We value our relationship with our local community and that operate gaming machines in the ACT, combine to will do everything in our power to preserve the positive impact on how we do business. The measures put in contribution we make regardless of the headwinds place by the current ACT Government will have a long- we face. Vikings Group Charity of the Year program is lasting impact on the Club industry. These measures just one way your Club gives back to the community. have missed the mark on encouraging responsible This year the team raised over $60,000 for OzHarvest gaming and will, if anything, cause greater harm in Canberra, who provide much needed relief to people the community than they purport to reduce. If the in need in and around Canberra. The experience of Government wishes to genuinely promote responsible partnering with OzHarvest was positive for all involved. gaming practice in the Club industry, consultation with The contribution to OzHarvest was in addition to the whole of industry is required. $2million plus Vikings Group gave to the community last financial year. Our contribution to community Harm minimisation is something Vikings Group represents approximately 14% of net gaming revenue. treats with the respect and attention it deserves. We believe we are at the forefront of the industry with Vikings Group Sports Awards has been running for 34 the initiatives we have put in place. I am proud to years. These Awards are for our Affiliate Clubs and is announce the opening of the first ever dedicated harm an opportunity to celebrate their achievements through minimisation facility in the Club industry. As part of the the year and recognise outstanding contributions Erindale redevelopment the Club incorporated a facility made to the local sporting community. In 2017, the designed to be used by members experiencing crisis Sports Awards event was held at Town Centre Vikings or distress. The room designed with Members needs with 280 guests attending from across our 51 Affiliate in mind has a dedicated hotline to Lifeline; a quiet, safe Clubs. Caroline Buchanan (Tuggeranong Vikings BMX space where Members can seek help in confidence. Club) was the guest speaker at the event and local Be it help to escape domestic violence or advice on politicians also attended - Ms Joy Burch MLA, Ms how to gamble responsibly, the dedicated support Nicole Lawder MLA, Mr Mark Parton MLA and Mr

8 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED CEO’S REPORT CONT.

James Milligan MLA. Vikings Group invest $25,000 into whilst playing the game they love. From there grew this event each year. what is today one of Australia’s most successful Rugby Clubs. This is a success story that should be Each year, there are major award winners across five celebrated and promoted. different categories, the 2017/18 award winners were: I would like to thank the management and staff of • Outstanding Junior Athlete of the Year – Vikings Group for their continued support. We have the Connor Frew (Calwell Little Athletics Club) best in the industry working for us and I thank them for • Outstanding Senior Athlete of the Year – continuing to provide the level of hospitality service and Kelsey Lee Roberts (South Canberra Tuggeranong care to our Members that they do. The Board, led by Athletics Club) David Assenheim, continues to guide the organisation and provide valuable support to management. They • Outstanding Volunteer Contribution – are dedicated, progressive and firmly focused on the Sharon Wright (Tuggeranong Vikings Baseball future of the Vikings Group and continue to ensure the Club) community is always at the core of our Clubs. • Outstanding Coaching/Officiating Contribution – Lastly, thank you to our Members for your continued Chris Tarlinton (Tuggeranong Vikings Touch Club) support of the Vikings Group. These are the Members • Outstanding Team Performance – State League Clubs, built and operated to serve that purpose. With Division One Team (Tuggeranong Netball the support of our Members Vikings will continue to be Association) strong and serve the purpose for which we exist. I would like to take the opportunity to thank all those involved in the successful coordination of the Charity of the Year and our Sports and Community programs, in particular Sarah Gilbert, our Sports and Community Program Manager. As the Annual report shows, your Club, Vikings, is a strong healthy organisation, organically grown in the Anthony Hill community of the Tuggeranong Valley since 1978. Chief Executive Officer Four Clubs providing hospitality to more than 40,000 Members. Four Clubs providing over $2 million in community support annually. Four Clubs supporting over 7,000 local athletes in Canberra. Four Clubs providing funding for 120,000 meals for people in need through OzHarvest Canberra. Four Clubs our Members can be proud of. Rugby has been at the heart of the Vikings organisation since its inception. It is a little-known fact that the Club was started by a group of likeminded individuals, rugby tragics, who needed a way to fund the replacement footballs they often lost in the river

2017/2018 ANNUAL REPORT 9 10 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED 2017/2018 ANNUAL REPORT 11 FINANCIAL REPORT YEAR ENDED 30 JUNE 2018

DIRECTORS’ REPORT Principal Activities The principal activities of the Club during the financial year were running 4 licensed Clubs. Incorporation The Club is incorporated, as a company limited by guarantee, under the Corporations Act 2001 (C’Wlth). The Link Between These Activities and Achieving Objectives The Club’s 4 licensed premises earn the cash and Directors surpluses needed to support the Club’s sporting, The names of the Directors of the Club in office during community and social objectives. the year and until the date of this report were:

David Assenheim President Measuring Performance The Club operates a Sports Council that meets Martyn O’Brien Vice-President monthly to co-ordinate the Club’s support for all Timothy Hutchinson Executive Director its affiliated sporting and community clubs. That John McGrath Director body provides the feedback to allow performance measurement of all the Club’s sporting and community Peter Webb Director activities. Geoff Adam Director As far as the Club’s licensed premises are concerned, Dean Browne Director success is measured by meeting financial targets David Paull Director established at the start of the year, visitation numbers, external consultants reports and benchmarking Objectives against like ACT organisations. The Club’s objectives are to encourage rugby union and sport in the Tuggeranong Valley and to provide Results recreation and sporting facilities for its members. The The Club’s net operating surplus during the year was Club is a not - for - profit entity. $151,858 (2017: surplus $1,186,338).

Significant changes in the state Environmental Regulation of affairs and Performance There have been no significant changes during 2017- 18 in the Club’s state of affairs. The Club’s operations are subject to various environmental regulations under both Commonwealth and Territory legislation. The Board believes that Strategy for Achieving Objectives the Club has adequate systems in place for the The Club provides about $2M per annum in grants, management of its environmental requirements and is infrastructure and other support to more than not aware of any breach of those requirements as they 50 sporting and community based clubs in the apply to the Club. Tuggeranong Valley. It also maintains four licensed Club premises that provide a social outlet for approximately 40,000 members in the Tuggeranong Valley.

12 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED Directors’ Benefits Auditor’s Independence and Non-Audit The directors received honorariums of $75,002 (2017: Services $75,002) during the year. The directors have received a declaration of independence from the auditor and this is included Directors’ Meetings in the financial report. The directors are satisfied that The Board met 12 times in the year ended 30 June the nature and scope of non-audit services has not 2018: compromised the auditor’s independence. Signed in accordance with a resolution of the Director’s Name No. Eligible No. Meetings directors. Meetings Attended David Assenheim 12 11 Martyn O’Brien 12 9 Timothy Hutchinson 12 8 David Assenheim Martyn O’Brien President Executive Director John McGrath 12 10 23 August 2018 23 August 2018 Peter Webb 12 9 Geoff Adam 12 10 David Paull 12 7 Dean Browne 12 11

Indemnification and Insurance of Officers During the financial year, the Club paid $15,499 for Directors and Officers Liability Insurance which covered those persons and the Club against losses arising out of wrongful acts of those persons (2017: $15,315.30).

2017/2018 ANNUAL REPORT 13

Directors’ Declaration

In accordance with a resolution of the Directors This declaration has been made after receiving the of Tuggeranong Valley Rugby Union and Sports declarations required to be made to the Directors Club Limited (the Club), I state that: in accordance with sections 295A of the Corporations Act 2001 for the financial period ended 30 June 2018. In the opinion of the Directors: On behalf of the Board, a. the financial statements and notes of the Club are in accordance with the Corporations Act 2001 and the Gaming Machine Act 2004 (ACT), including: i. giving a true and fair view of the Club’s financial position as at 30 June 2018 and David Assenheim of its performance for the year ended on President that date; and 23 August 2018 ii. complying with Accounting Standards - Reduced Disclosure Requirements and Corporations Regulations 2001; 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.

14 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 JUNE 2018 NOTES 2018 2017 $ $ CONTINUING OPERATIONS

SALES REVENUE 32,610,217 32,891,532

COST OF SALES (14,620,332) (14,281,721)

GROSS SURPLUS 17,989,885 18,609,811

RENT FROM COMMERCIAL PROPERTY INVESTMENTS 8 3,458,475 1,621,054

OTHER REVENUE FROM CONTINUING OPERATIONS 3 1,396,249 1,284,094

Depreciation and Impairment 4a) (5,586,488) (5,159,747)

Borrowing Cost Expense 4b) (1,325,990) (501,909)

Commercial Property Investment Operating Costs 8 (400,945) (209,448)

Costs of Non-Core Activities 4c) (2,046,894) (1,852,616)

Operating Overheads 4d) (13,332,434) (12,604,901)

(22,692,751) (20,328,621)

SURPLUS FROM CONTINUING OPERATIONS BEFORE 151,858 1,186,338 INCOME TAX EXPENSE

Income Tax Expense Relating to Continuing Operations 5 - -

SURPLUS FROM CONTINUING OPERATIONS AFTER 151,858 1,186,338 INCOME TAX EXPENSE

SURPLUS/(DEFICIT) FOR THE YEAR 151,858 1,186,338

OTHER COMPREHENSIVE INCOME 602,000 -

TOTAL COMPREHENSIVE INCOME 753,858 1,186,338

2017/2018 ANNUAL REPORT 15 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018 NOTES 2018 2017 $ $ ASSETS Current Assets Cash Assets 2,348,861 7,830,393 Investments 6 8,759,038 8,836,797 Trade & Other Receivables 7 2,605,763 3,190,804 Inventories 272,867 217,623 Other 614,318 559,550 Asset Held for Sale 397,336 - Total Current Assets 14,998,183 20,635,167 Non-Current Assets Investments 6 2,082,000 1,480,000 Trade & Other Receivables 7 675,320 179,464 Investment Properties 8 35,721,531 36,943,917 Property, Plant & Equipment 9 48,103,395 41,345,120 Intangibles 222,000 222,000 Total Non-Current Assets 86,804,246 80,170,501 TOTAL ASSETS 101,802,429 100,805,668 LIABILITIES Current Liabilities Payables 10 2,494,458 804,808 Interest-Bearing Liabilities 11 1,487,955 1,505,218 Provisions 1,179,288 1,108,443 Total Current Liabilities 5,161,701 3,418,468 Non-Current Liabilities Payables 10 83,333 98,419 Interest-Bearing Liabilities 11 27,733,413 29,169,628 Provisions 70,924 119,952 Total Non-Current Liabilities 27,887,670 29,388,000 TOTAL LIABILITIES 33,049,371 32,806,468

NET ASSETS 68,753,058 67,999,200

MEMBERS’ FUNDS

Accumulated Funds 68,151,058 67,999,200

Reserves 602,000 -

TOTAL MEMBERS’ FUNDS 68,753,058 67,999,200

16 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018 NOTES 2018 2017 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers 40,398,523 37,246,619 Payments to Suppliers and Employees (33,529,701) (29,484,827) Interest Received 319,905 401,651 Borrowing Costs (1,325,990) (501,909) Net Cash Flows from Operating Activities 5,862,737 7,661,534

CASH FLOWS FROM FINANCING ACTIVITIES Loans Re-Paid by Sporting Clubs 36,454 234,740 Loans (Provided) to Sporting Clubs (271,755) (836,000) Receipts from borrowings - 31,576,737 Repayments of borrowings (1,453,478) (4,765,414) Net Cash Flows from / (used in) Financing Activities (1,688,779) 26,210,063

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Property, Plant & Equipment 578,669 717,134 Proceeds from Investments 3,312,238 6,049,380 Payments for Investments (3,234,479) (3,583,166) Payments for Investment Properties - (32,654,113) Payments for Property, Plant & Equipment (10,311,918) (5,383,807) Net Cash Flows used in Investing Activities (9,655,491) (34,854,573)

NET (DECREASE)/INCREASE IN CASH HELD (5,481,532) (982,976)

ADD OPENING CASH BROUGHT FORWARD 7,830,393 8,813,369

CLOSING CASH CARRIED FORWARD 2,348,861 7,830,393

2017/2018 ANNUAL REPORT 17 STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2018

Investment Accumulated Total Revaluation Funds Reserve

$ $ $ BALANCE AT 30 JUNE 2016 - 66,812,862 66,812,862 Net Surplus for the Year - 1,186,338 1,186,338 Other Comprehensive Income for the Year - - -

BALANCE AT 30 JUNE 2017 - 67,999,200 67,999,200 Net Surplus for the Year - 151,858 151,858 Other Comprehensive Income for the Year 602,000 - 602,000

BALANCE AT 30 JUNE 2018 602,000 68,151,058 68,753,058

18 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS

measured reliably. Risks and rewards of ownership are considered FOR THE YEAR ENDED 30 JUNE 2018 passed to the buyer at the time of delivery of the goods to the customer. NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Taxes Significant accounting policies are as follows: Income Tax: Current tax assets and liabilities for the current and Basis of Accounting prior periods are measured at the amount expected to be recovered The financial report is a general purpose financial report, which from or paid to the Australian Taxation Office. The tax rates and tax has been prepared in accordance with the requirements of the laws used to compute the amount are those that are enacted or Corporations Act 2001, Australian Accounting Standards – Reduced substantially enacted by the reporting date. Deferred income tax is Disclosure Requirements and other authoritative pronouncements provided on all temporary differences at the reporting date between of the Australian Accounting Standards Board. The financial report the tax base of assets and liabilities and their carrying amounts has also been prepared on a historical cost basis, except for financial for financial reporting purposes. Deferred income tax assets are instruments which have been measured at fair value. The financial recognised for all deductible temporary differences, carry-forward report is presented in Australian dollars and all values are rounded to of unused tax assets and unused tax losses, to the extent that it the nearest dollar unless otherwise stated. The financial statements is probable that taxable profit will be available against which the provide comparative information in respect of the previous period. deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised. Critical accounting estimates The preparation of the financial statements requires the use of certain The carrying amount of deferred income tax assets is reviewed at critical accounting estimates. It also requires management to exercise each reporting date and reduced to the extent that it is no longer its judgement in the process of applying the Club’s accounting probable that sufficient taxable profit will be available to allow all or policies. The areas involving a higher degree of judgement or part of the deferred income tax asset to be utilised. Unrecognised complexity, or areas where assumptions and estimates are significant deferred income tax assets are re-assessed at each reporting date to the financial statements, are disclosed in note 2. and are recognised to the extent that it has become probable that future taxable profits will be available to allow all or part of the deferred Corporate Information income tax asset to be utilised. The Club, incorporated in Australia, is a Company limited by Goods & Services Tax (GST): Revenues, expenses and assets guarantee under the Corporations Act 2001. As such no dividends are recognised net of the amount of GST except when GST is not can be paid to members. The liability of each member is limited to recoverable in which case the GST is recognised as a part of the any unpaid amounts outstanding on any entrance fee and annual cost of the expense item or asset in question. Trade and other subscription. The Club’s registered office is located at 6 Ricardo receivables as well as are stated with GST included, payables with Street, Wanniassa in the Australian Capital Territory. The Club’s GST excluded. The net amount of GST recoverable from, or payable financial report for the year ended 30 June 2018 was authorised for to, the taxation authority, is included as part of trade and other issue in accordance with a resolution of the directors that was taken receivables or payables in the Statement of Financial Position. Cash on 23 August 2018. The Club employed 219 employees as at 30 flows are included in the Cash Flow Statement on a gross basis and June 2018 (2017: 203). the GST component of cash flows arising from financing and investing Statement of Compliance activities, which is recoverable from, or payable to, the taxation The Club is a not-for-profit, private sector entity which is not publicly authority, is included as part of operating cash flows. accountable. Therefore, the financial statements for the Club are tier Current and non-current classification 2 general purpose financial statements which have been prepared Assets and liabilities are presented in the statement of financial in accordance with Australian Accounting Standards – Reduced position based on current and non-current classification. Disclosure Requirements (AASB – RDRs). An asset is classified as current when: it is either expected to be Revenue Recognition realised or intended to be sold or consumed in the Club’s normal Revenue is recognised to the extent that it is probable that the operating cycle; it is held primarily for the purpose of trading; it is economic benefits will flow to the Club and the revenue can be reliably expected to be realised within 12 months after the reporting period; measured. or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the Rental income: Income arising from operating leases on investment properties is accounted for in revenue in the Statement of reporting period. All other assets are classified as non-current. Comprehensive Income due to its operating nature. Where it has a A liability is classified as current when: it is either expected to be material impact operating leases are accounted for on a straight-line settled in the Club’s normal operating cycle; it is held primarily for basis over the lease terms. the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the Sale of Goods (includes liquor and gaming machine revenue): Revenue is recognised when the significant risks and rewards of settlement of the liability for at least 12 months after the reporting ownership of the goods have passed to the buyer and the costs period. All other liabilities are classified as non-current. incurred or to be incurred in respect of the transaction can be

2017/2018 ANNUAL REPORT 19 NOTES TO THE FINANCIAL STATEMENTS (CONT)

Cash & Cash Equivalents Investment Properties Cash includes cash on hand and in banks, and money market Investment Properties are measured initially at cost, including investments readily convertible to cash within 30 working days, net of transaction costs. The carrying amount includes the cost of replacing outstanding bank overdrafts. part of an initial investment property at the time that cost is incurred if the recognition criteria are met and excludes the cost of day to day Trade & Other Receivables servicing of an investment property. Subsequent to initial recognition, Trade Receivables, which generally have 30 day terms, are recognised investment properties are carried at cost less accumulated and carried at original invoice amount less any impairment. depreciation and any accumulated impairment losses. Collectability of trade receivables is reviewed on an ongoing basis and individual debts that are likely to be uncollectible are written off when Investment Properties are derecognised either when they have identified. Loans and receivables are not derivative financial assets been disposed of or when the investment property is permanently with fixed or determinable payments that are not quoted in an active withdrawn from use and no further economic benefit is expected from market. Loans and receivables are initially measured at fair value its disposal. Any gains or losses on the retirement or disposal of an and subsequently at amortised cost using the effective interest rate investment property are recognised in the surplus or deficit in the year method, less impairment. of retirement or disposal. Inventories Interest Bearing Liabilities Inventories comprise liquor, dry goods and consumables and are Interest Bearing liabilities are initially recognised at the fair value of valued at the lower of cost or net realisable value. Cost is actual the consideration received less directly attributable transaction costs. purchase price on a first in first out basis. After initial recognition, interest-bearing liabilities are subsequently measured at amortised cost using the effective interest method. Fees Payables paid on the establishment of loan facilities that are yield related are Liabilities for trade creditors and other payables are initially recognised included as part of the carrying amount of the loans and borrowings. at fair value being the transaction price and subsequently carried Interest Bearing liabilities are classified as current liabilities unless the at amortised cost and due to their nature they are not discounted. Club has an unconditional right to defer settlement of the liability for at They represent liabilities for goods and services provided to the Club least 12 months after the reporting date. prior to the end of the financial year that are unpaid and arise when Borrowing Costs are expensed in the period they occur. They consist the Club becomes obliged to make future payments in respect of of interest and other costs incurred in connection with the borrowing the purchase of those goods and services. These amounts are of funds. unsecured and are usually paid within 30 days of recognition. Employee Benefits Property, Plant & Equipment Wages, Salaries and Annual Leave: Liabilities for wages and Property, Plant & Equipment is carried at historical cost less salaries, including non-monetary benefits and annual leave are accumulated depreciation and any accumulated impairment losses. recognised in other payables in respect of employees’ services up to Disposal: Any gain or loss on the disposal of assets is determined the reporting date. They are measured at the amounts expected to be as the difference between the carrying value of the asset at the time paid when the liabilities are settled. of disposal and the proceeds from disposal, and is included in the Long Service Leave: The liability for long service leave is recognised results of the Club in the year of disposal. in the provision for employee benefits and measured as the present Impairment: Non-financial assets are reviewed for impairment value of expected future payments to be made in respect of services whenever events or changes in circumstances indicate that the provided by employees up to the reporting date. Consideration carrying amount may not be recoverable. An impairment loss is is given to expected future wage and salary levels and periods of recognised for the amount by which the asset’s carrying amount service. exceeds its recoverable amount. Recoverable amount is the higher Chisholm Sports, Town Centre Sports and Lanyon Rugby Clubs of an asset’s fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows As these clubs are trading names owned by the Club, and are relating to the asset using a pre-tax discount rate specific to the asset not separate legal entities, transactions involving them have been or cash-generating unit to which the asset belongs. Assets that do incorporated into the accounts of the Club. not have independent cash flows are grouped together to form a Fair value measurement cash-generating unit. When an asset or liability, financial or non-financial, is measured at fair Depreciation: is provided on a straight line basis on all property, plant value for recognition or disclosure purposes, the fair value is based and equipment other than leasehold land. The rates below allocate on the price that would be received to sell an asset or paid to transfer the cost of the asset over its estimated useful life. a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place Buildings 50 years 2% per annum either: in the principal market; or in the absence of a principal market, Furniture & Fittings 5 years 20% per annum in the most advantageous market. Fair value is measured using the Plant & Equipment 10 years 10% per annum assumptions that market participants would use when pricing the Poker Machines 4 years 25% per annum asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its Kitchen Equipment 10 years 10% per annum highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

20 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED Intangible Assets Gaming Machine Entitlements Estimation of useful lives of assets Intangible assets acquired separately are measured on initial The Club determines the estimated useful lives and related recognition at cost. Following initial recognition, intangible assets are depreciation and amortisation charges for its property, plant and carried at cost less any accumulated amortisation and accumulated equipment and finite life intangible assets. The useful lives could impairment losses. The useful lives of intangible assets are assessed change significantly as a result of technical innovations or some other as indefinite and are therefore not amortised, but are tested for event. The depreciation and amortisation charge will increase where impairment annually, either individually or at the cash-generating the useful lives are less than previously estimated lives, or technically unit level. The assessment of indefinite life is reviewed annually to obsolete or non-strategic assets that have been abandoned or sold determine whether the indefinite life continues to be supportable. will be written off or written down. If not, the change in useful life from indefinite to finite is made on a Impairment of non-financial assets other than goodwill and other prospective basis. Gains or losses arising from derecognition of an indefinite life intangible assets intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are The Club assesses impairment of non-financial assets other than recognised in the statement of comprehensive income when the asset goodwill and other indefinite life intangible assets at each reporting is derecognised. date by evaluating conditions specific to the Club and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value NOTE 2: CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES less costs of disposal or value-in-use calculations, which incorporate AND ASSUMPTIONS a number of key estimates and assumptions. The preparation of the financial statements requires management Employee benefits provision to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually As discussed in note 1, the liability for employee benefits expected evaluates its judgements and estimates in relation to assets, liabilities, to be settled more than 12 months from the reporting date are contingent liabilities, revenue and expenses. Management bases its recognised and measured at the present value of the estimated future judgements, estimates and assumptions on historical experience cash flows to be made in respect of all employees at the reporting and on other various factors, including expectations of future events, date. In determining the present value of the liability, estimates of management believes to be reasonable under the circumstances. The attrition rates and pay increases through promotion and inflation have resulting accounting judgements and estimates will seldom equal the been taken into account. related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

2017/2018 ANNUAL REPORT 21 NOTES TO THE FINANCIAL STATEMENTS (CONT)

2018 2017 $ $

NOTE 3: OTHER REVENUE FROM CONTINUING OPERATIONS Net Gain on the sale of Non-Current Assets 825,019 430,380 Interest - Bank 319,905 401,651 Returns from Financial Investments 251,325 452,062 1,396,249 1,284,093 NOTE 4: EXPENSES a) Depreciation & Impairment Losses Buildings 857,010 815,274 Investment Properties 825,051 326,658 Furniture & Fittings 519,359 535,833 Plant & Equipment 836,728 828,912 Poker Machines 2,341,561 2,598,529 Kitchen Equipment 206,779 54,541 5,586,488 5,159,747 b) Borrowing Cost Expense Interest 1,325,990 501,909

c) Non-Core Activities Community Contributions 2,046,894 1,852,616

d) Operating Overheads Indirect Trading Expenses 4,139,437 3,961,017 Administrative Expenses 7,484,150 6,659,718 Promotional Expenses 1,708,847 1,984,166 13,332,434 12,604,901

22 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED 2018 2017 $ $

NOTE 5: INCOME TAX The estimated cumulative potential future income tax benefit at 30 June 2018 in respect of tax losses not brought to account is $5,481,890 and accumulated capital losses of $1,771,081. This benefit from tax losses will only be obtained if the club derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions from the losses to be realised. Income tax is payable on that proportion of the income less expenses contributed by non-members. The aggregate amount of income tax attributable to the financial year differs from the amount prima facie payable on the operating surplus. The difference is reconciled as follows:

Income Statement Current income tax Accounting profit/(loss) 151,858 1,186,338

Tax at the applicable corporate tax rate of 30% 45,557 355,901 Tax effect of -

non taxable member income and expenses arising from the principle of mutuality 5,074 61,243 50,631 417,144 Prior Year Tax Losses Recouped Benefit of Current year tax losses not recognised (50,631) (417,144) Income Tax Expense - -

NOTE 6: INVESTMENTS Shares listed on the Australian Stock Exchange 3,062,488 - Term Deposit 5,696,550 8,836,797 Unit Trust Holding in Bunnings Belconnen Site 679,000 480,000 Unit Trust Holding in Lawley House Site 1,403,000 1,000,000 10,841,038 10,316,797 Represented by: Current Asset 8,759,038 8,836,797 Non-Current Asset 2,082,000 1,480,000 10,841,038 10,316,797

NOTE 7: TRADE & OTHER RECEIVABLES Trade Debtors 1,028,481 1,352,967 QSCC Receivable* 533,328 440,000 Loan Receivable** 148,652 186,679 Loan Receivable*** 1,570,622 1,390,622 3,281,083 3,370,268 Represented by: Current Asset 2,605,763 3,190,249 Non-Current Asset 675,320 180,019 3,281,083 3,370,268

*The above receivable is a cash advance to the Queanbeyan Sports & Community Club (QSCC) and is expected to be repaid in full. **The above loan was made to the Vikings Fishing Club Inc. at a fixed rate of 6.00%pa (2017: 6%) and is secured by first mortgage and charge over the borrower’s assets. ***The above loan was made to the Queanbeyan Bowling Club Limited at a rate equal to the 6 month call deposit rate from the Commonwealth Bank of Australia and is secured by first mortgage and charge over the borrower’s land. The Queanbeyan Bowling Club Limited has now amalgamated with the Queanbeyan Sports and Community Club.

2017/2018 ANNUAL REPORT 23 NOTES TO THE FINANCIAL STATEMENTS (CONT)

2018 2017 $ $

NOTE 8: INVESTMENT PROPERTIES Investment Properties - at cost 38,245,413 38,757,799 Accumulated Depreciation (2,523,883) (1,813,882) 35,721,531 36,943,917

The Club’s Investment Properties consist of three commercial properties within the A.C.T. being a suburban child care centre, a suburban medical centre and a suburban car wash as well as a hotel in Sydney

Operating Income derived from Investment Properties 3,442,248 1,621,055 Direct operating expenses from Investment Properties (389,512) (209,448) Profit arising from Investment Properties carried at fair value 3,052,736 1,411,607

Operating Income derived from Asset Held for Sale 16,227 - Operating Overheads - Asset Held for Sale (11,433) - Profit arising from Discontinued Operations carried at fair value 4,794 -

The Club has entered into a contract for sale of the Unit at Batemans Bay and contracts were exchanged prior to 30 June 2018. Settlement on the sale will be in September 2018. The agreed sale price is $430,000. The accounting profit on the sale will be approximately $20,000.

Reconciliation Reconciliations of the carrying amounts of Investment Properties at the beginning and end of the current and previous financial year.

Carrying amount at start 36,943,917 4,215,202 Additions during Year - 32,654,113 Asset Reclassification* (397,335) 694,160 Disposals during Year - (284,949) Depreciation Expense (825,051) (334,609) Carrying Amount at end 35,721,531 36,943,917

*The above reclassification relates to the Unit at Batemans Bay, which was previously classified as Investment properties but is now held for sale.

2018 2017 $ $

NOTE 9: PROPERTY, PLANT & EQUIPMENT 1,390,860 1,390,860 Leasehold Land - at cost 47,429,142 41,380,058 Leasehold Buildings - at cost (14,206,847) (13,349,836) Accumulated Depreciation 33,222,295 28,030,222

Furniture & Fittings - at cost 6,208,236 5,857,748 Accumulated Depreciation (5,011,381) (4,492,023) 1,196,855 (1,365,725)

Plant & Equipment - at cost 16,305,808 15,530,240 Accumulated Depreciation (11,786,956) (10,950,228) 4,518,852 4,580,012

24 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED NOTE 9: PROPERTY, PLANT & EQUIPMENT (CONTINUED)

2018 2017 $ $

Poker Machines - at cost 28,796,183 27,097,512 Accumulated Depreciation (21,312,273) (21,539,805) 7,483,910 5,557,707

Kitchen Equipment - at cost 1,486,673 1,409,863 Accumulated Depreciation (1,196,048) (989,269) 290,625 420,594

Total Property, Plant & Equipment - at cost 101,616,902 92,666,281 Accumulated Depreciation (53,513,505) (51,321,161) Total Written Down Value 48,103,397 41,345,120

Reconciliation Reconciliations of the carrying amounts of Property, Plant & Equipment at the beginning and end of the current and previous financial year.

Leasehold Buildings and Furniture and Plant and Poker Kitchen Total land leasehold fittings equipment machines equipment land Balance at the 1,390,860 28,030,222 1,365,725 4,580,012 5,557,707 420,594 41,345,120 beginning of the year Additions - 6,049,083 350,489 775,568 4,296,187 76,810 11,548,137 Disposals - - - - (28,423) - (28,423) Depreciation - (857,010) (519,359) (836,728) (2,341,561) (206,779) (4,761,437) expense Carrying amount at 1,390,860 33,222,295 1,196,855 4,518,852 7,483,910 290,625 48,103,397 the end of the year

2018 2017 $ $

NOTE 10: PAYABLES Trade Creditors 540,919 167,990 GST Payable 158,320 128,901 Accrued Expenses 1,878,552 606,335 2,577,791 903,227

Represented by: Current Asset 2,494,458 804,807 Non-Current Asset 83,333 98,419 2,577,791 903,227

2017/2018 ANNUAL REPORT 25 NOTES TO THE FINANCIAL STATEMENTS (CONT)

2018 2017 $ $

NOTE 11: INTEREST BEARING LIABILITIES ANZ Bank - Commercial Bills 29,221,368 30,674,846 Represented by: Current Liability 1,487,955 1,505,218 Non-Current Liability 27,733,413 29,169,628 29,221,368 30,674,846

Financing Facilities Available At balance date, the following financing facilities had been negotiated and were available.

Total Facilities Available at Reporting Date Contingencies/Credit Cards 185,000 185,000 Bank Overdraft 400,000 400,000 Bank Loans 29,221,368 30,674,846 29,806,368 31,259,846

Total Facilities Used at Reporting Date Bank Overdraft - 123,198 Bank Loans 29,221,368 30,674,846 29,221,368 30,798,044

Total Facilities Unused at Reporting Date Contingencies/Credit Card 185,000 185,000 Bank Overdraft facility 400,000 276,802 585,000 461,802

Assets Pledged as Security The above facilities are secured by a floating charge held by the ANZ Bank over all the Club’s assets and undertakings. That bank also holds first mortgages over the land and buildings at the Chisholm, Erindale, Town Centre and Lanyon Clubs, The North Ryde apartments, the Medical Centre, the Car Wash, the Guardian Childcare Centre and the Batemans Bay Unit. Terms and Conditions of Bank Loan The facility arrangements for the above loan are reviewed annually. Forecasted principal repayments of $1,500,039 will be made over the next 12 months. Bank Loan Covenants There have been no breaches of loan covenants.

NOTE 12: CONTINGENT LIABILITIES The Club has guaranteed the ACTTAB $85,000 in respect of any shortfall in the Chisholm, Erindale, Town Centre or Lanyon clubs’ TAB Facilities. ACTTAB is a wholly owned subsidiary of Tabcorp ACT Pty Ltd.

NOTE 13: REGISTER OF MEMBERS The Club’s membership register is kept at the Club’s Registered Office at 6 Ricardo Street, Wanniassa, ACT.

26 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED NOTE 14: RELATED PARTY DISCLOSURES

Club Directors during the financial year were:

David Assenheim President Martyn O’Brien Vice-President Timothy Hutchinson Executive Director John McGrath Director

Peter Webb Director

Geoff Adam Director Dean Browne Director David Paull Director

Honorariums of $75,002 (2016/17: $75,002) were paid during the 2017/18 financial year. Directors and Officers Liability Insurance of $15,499.00 (2016/17: $15,315.30) was paid by the Club during the year. Director/Director Related Entity Transactions As part of Mr Adams agreement with TVRUFC Inc., and in his duties as Rugby House Master, Mr Adam resides at a Club owned property in Monash where the market rent for this property would normally be $31,200 p.a. of which Mr Adam’s share would be $6,240 p.a. No rent is received from Mr Adam whilst residing in the property.

NOTE 15: COMMITMENTS

There were no commitments of any note outstanding at the end of the financial year except for loan repayments.

2018 2017 $ $

NOTE 16 REMUNERATION OF KEY MANAGEMENT PERSONNEL Short-term employee benefits including superannuation. From March 2017 to March 2018 the 979,266 1,082,759 Chief Finance Officer was contracted to the organisation rather than employed and the cost of that contract has been included in the remuneration for Key Management Personnel.

These benefits were provided to the Chief Executive Officer, Group Operations Manager, Gaming Manager and the Chief Financial Officer. Directors do not receive remuneration.

NOTE 17: SUBSEQUENT EVENTS

There were no matters of any note arising subsequent to the financial year but before the adoption of this report.

2018 2017 $ $

NOTE 18: GROSS REVENUE - Section 158 Gaming Machine Act 2004 (ACT) Chisholm Sports Club 5,020,717 5,580,895 Tuggeranong Valley Rugby Union and Sports Club 7,297,687 7,463,458 Town Centre Sports Club 7,651,466 6,650,209 Lanyon Valley Sports Club 4,716,199 4,832,720 24,686,069 24,527,282

Above figures are GST inclusive

2017/2018 ANNUAL REPORT 27 INFORMATION PROVIDED UNDER THE GAMING MACHINE ACT 2004 (A.C.T)

FOR THE YEAR ENDED 30 JUNE 2018

1. ARRANGEMENTS WITH “INFLUENTIAL PERSONS” (Sections 7(1)(a) and 54(a) Gaming Machine Act 2004) The Club has written employment contracts, on normal commercial terms, with senior management. There are no contracts or arrangements with directors, other than those disclosed in Note 14 of the Financial Report.

2. CONTRACTS OVER $99,999 Including GST (Section 54(aa) Gaming Machine Act 2004)

ACTEWAGL Gas & Electricity AMC ARCHITECTURE PTY LTD Building Services AINSWORTH Gaming Machines AON PROFESSIONAL SERVICES Insurance ARISTOCRAT TECHNOLOGIES Gaming Machines ASAHI PREMIUM BEVERAGES Liquor AUSCAN SOLUTIONS PTY LTD Electrician Services AUSTRALIAN LIQUOR MARKETER Liquor BUNZL Dry Goods CALLIDA CONSULTING Audit & Accounting CARRIER AUSTRALIA PTY LTD Repairs & Maintenance C J GAMING PTY LTD Gaming Machines COCA COLA AMATIL(AUST) P/L Soft Drinks COOL CHILLI PTY LTD IT Services DAILY PRESS Marketing ERNST & YOUNG Audit & Accounting ETS COMMERCIAL REFRIGERATI Repairs & Maintenance FM PROJECTS AUSTRALIA Building Services FOSTERS AUSTRALIA LIMITED Liquor ICON Water Water & Sewerage IGT (AUSTRALIA) PTY LTD Gaming Machines MORRIS WALKER Marketing NATIONAL CAPITAL GUARDS PT Security Services PALTRONICS AUSTRALASIA Gaming Signage ROBERT OATLEY Liquor ROLFE PROPERTY SERVICES Cleaning ROSE CLEANING GROUP PTY LT Cleaning SG GAMING Gaming Machines TELSTRA Phone/IT Services

3. REMUNERATION OVER $150,000 (Section 54(b) Gaming Machine Act 2004) The number of employees receiving remuneration in excess of $150,000 was four.

28 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED 4. BENEFITS (Section 54(d) Gaming Machine Act 2004)

Benefit Value $ Position Purpose Provider of Benefit

Rugby Match 1,300 2 Directors & 1 Manager Sponsors Networking Brumbies

Corporate Bowls 360 3 Managers Sponsors Networking CUB

Christmas Gifts 2,073 8 Directors & 13 Managers Christmas Event/Gifts TVRU & SC Ltd and Suppliers

Cabcharge 1,393 8 Directors Travel to Functions TVRU & SC Ltd

Mobile Phones and 22,954 8 Directors & 5 Managers Home Office TVRU & SC Ltd Internet

2016/2017 ANNUAL REPORT 29 ERINDALE CHISHOLM VIKINGS VIKINGS 02 6121 2100 02 6209 0200 6 Ricardo Street, Wanniassa Benham Street, Chisholm Sunday to Wednesday 10am–1am Sunday to Wednesday 10am–12am Thursday to Saturday 10am–4am Thursday to Saturday 10am–1am

THE COOKERY CHAMPS BISTRO & GRILL BISTRO 02 6121 2116 02 6209 0206 Lunch – Everyday Noon–2pm Lunch – Monday to Sunday Noon–2pm Dinner – Everyday 6pm–9pm Dinner – Sunday to Monday 6pm–8.30pm Tuesday to Saturday 6pm–9pm BRICK & BASIL 02 6121 2120 Lunch – Everyday Noon–2pm Dinner – Everyday 6pm–9pm

VIKINGS 24/7 FITNESS 02 6231 6597 Open 24/7 Staffed hours; Monday & Wednesday 6am-2pm & 3pm-7.30pm Tuesday & Thursday 9.30am-2pm & 3pm-7.30pm Friday 6am-11am Saturday 9am-12noon

30 TUGGERANONG VALLEY RUGBY UNION AND SPORTS CLUB LIMITED TOWN LANYON CENTRE VIKINGS 02 6200 8400 VIKINGS Heidelberg Street, Conder Sunday to Wednesday 10am–1am 02 6208 6300 Thursday to Saturday 10am–3am Cnr. Athllon Drive & Rowland Rees Crescent, Greenway RED ROCK Monday to Friday 9am–4am BISTRO Saturday to Sunday 10am–4am 02 6200 8406 Lunch – Everyday Noon–2pm BAAMOO Dinner – Everyday 6pm–9pm BISTRO & GRILL 02 6208 6307 Lunch – Everyday 12pm–2pm Dinner – Sunday to Wednesday 6pm–8:30pm Thursday – Saturday 6pm–9pm

2017/2018 ANNUAL REPORT 31 VIKINGS.COM.AU