2014 annual report · 2014 annual report for the year ended 30 june 2014 mounties / mounties...

2014 AnnuAl RepoRtfoR the yeAR ended 30 June 2014

mounties / mounties bowling club / harbord diggers / manly bowling club / club italia / mekong / triglav

our purposeMounties Group... connecting people with community.

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Our planning process ..............................................4

Our people ...............................................................5

Year at a glance .......................................................6

President’s report ....................................................7

Our achievements & fast facts ............................ 8-9

CEO’s report .................................................... 10-12

Community report ........................................... 14-16

Responsible gaming report ............................. 20-21

Harbord Diggers redevelopment plans .......... 22-23

Annual general meeting notice ........................ 24-30

Source application funds ......................................32

Director’s report ............................................... 36-37

Our financial statements ................................. 38-40

Auditor’s declarations ...................................... 56-57

Income & expenditure statement .................... 58-59

Schedule of lands ............................................ 62-63

Club contact information .......................................65

table of contents About this reportMounties Group 2013-14 annual report provides a comprehensive account of the Group’s performance from 1 July 2013 to 30 June 2014.

This publication reflects our commitment to improving member equity, to serving our community and to enhancing the working life of our employees.

In 2012-13 Mounties Group embarked on an ambitious program of amalgamation. This year’s annual report provides us with our first real opportunity to report on the achievements of each of our seven clubs, and address any minor setbacks experienced throughout the year. It also allows us to outline our priorities for 2014-15.

The reverse order 2013-14 annual report meets with our commitment to transparent performance reporting and good corporate governance.

our visionTo provide a destination of choice for the community to trust & enjoy.

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triglavCemented its spot as the most “family friendly” club in southwest Sydney, with record attendance at our Family Fun Days and school holiday programs. 13% growth on net profit return on revenue.

Mekong Celebrated 21 years serving the community of Cabramatta. Major sponsor of the Moon and TET Festivals. Outstanding EBITDA return on revenue at 40.6%.

Club ItaliaWelcomed new contract caterers and began a soft refurbishment program.

Manly Bowling ClubCompleted a soft refurbishment of the club; a review of its entertainment, and successfully leveraged its sponsorship of the Manly Marlins to drive attendance.

harbord diggersMasterplan D.A approved giving in-principle support for a new club, seniors living village, a child care facility, and a new fitness and aquatic centre.

Soft refurbishment of existing club facilities also achieved.

Mounties Bowling ClubPlaced strongly in Tabcorp’s Legends League and enjoyed revenue growth from seasonal Futsal competition.

MountiesWinner 2013 OOP’s Superior Service Award – Large Clubs.

Record year for community support with funding in excess of $5,577,883 distributed.

More than $1.4M given away via member promotions.

one card, 7 clubs

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our planning processAt the start of each new financial year, the board of directors and the executive management team workshop the Group’s priorities to deliver the Strategic Plan. This plan informs the budget. Management and staff tasked to deliver the Strategic Plan must then report to the board each quarter on their progress and achievements.

A demanding meeting schedule for board and appointed committee meetings is released at the beginning of the financial year. Attendance is strictly monitored and all meetings fully documented. Monthly management reports are tabled at board meetings via the CEO.

Annual business plans are drafted for each club, together with agreed KPI’s for key departments (such as gaming,

beverage and catering) to provide the foundation for our annual budget. Budgets are reviewed monthly and reported to members on a quarterly basis.

With the assistance of Fairfield, Liverpool and Warringah Councils, the Club conducts its annual ClubGRANTS program to determine funding priorities for the year. Additional funding and sponsorship requests are then channelled through the Grants Committee and whilst ongoing member feedback provides an insight on the will of the members.

The Annual Report closes the loop in the process, reporting back on achievements and financial results to members and key stakeholders.

Mon

thly

man

agement reports Annual planning w

orkshop

ClubGRANTS & SmartyGran

t Pro

gram

. Mem

be

r feedback

Review & set individual business K

PIs

Board & Committeemeetings

Board of Directors

Annual Strategic

Plan

Community Engagement

Annual Budget

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our people

Board of directors

Front row (left to right): Steve Fitzpatrick (Vice President), Kevin Ingram (President) & John Dean (Vice President).

• 700 employees group-wide, slightly favouring women who represent 53% of our workforce

• 44 languages are spoken by our staff

• 960,657 hours worked by Mounties Group employees for the year

• 62 employees recognised with a combined total of 545 years of service at our annual staff awards

• 11,000 hours was spent training at a cost of $340,000

• 180 employees recruited group-wide in 2013-14

• 16% reduction in wages lost to injury/illness

• Mounties – Finalist – South Western Sydney Business Awards 2014 – “Employer of Choice”

• Mounties - 2013 OOP’s Superior Service Award – Large Clubs

As one of the largest employment stakeholders in each of the LGA’s where our clubs are located, Mounties Group works with local schools, TAFE and support agencies to provide work experience, work placement and job trials for those looking for work or to return to work.

With seven registered clubs, two fitness centres and two holiday resorts, Mounties Group boasts a workforce of more than 700 employees, with the lion’s share residing in southwest Sydney. Here is just a snapshot of our employment portfolio for 2013-14:

Back row (left to right): Bill McGrory, Lorraine Dean, Tom Murphy, Leon Hansen, Noel Henry, Stephen Edwards, Marilyn Price & Trevor Forman.

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Membership No Gross Total Total Membership Equity Per Year Members Revenue Assets Liabilities Investments Equity Member

2014 106,849 $523,360,693 $250,886,705 $17,430,492 $13,830,798 $233,456,213 $2,185

2013 108,114 $435,960,287 $242,834,614 $18,091,562 $7,229,040 $224,743,062 $2,079

2012 105,574 $438,442,613 $230,849,006 $14,269,786 $37,486,651 $216,579,254 $2,051

2011 104,136 $391,438,675 $220,552,777 $13,452,852 $26,703,918 $207,099,925 $1,989

2010 103,639 $352,580,053 $212,895,264 $14,029,104 $24,460,915 $198,866,160 $1,919

2009 99,925 $342,877,227 $209,064,065 $14,906,301 $22,020,865 $194,157,764 $1,943

2008 94,505 $322,233,574 $199,086,561 $15,210,120 $24,170,000 $183,876,441 $1,946

2007 94,597 $331,118,057 $195,157,034 $17,740,617 $26,164,703 $177,416,417 $1,875

2006 82,949 $291,938,051 $189,284,877 $18,315,705 $25,758,169 $170,969,172 $2,061

2005 67,676 $268,590,382 $131,523,972 $10,686,670 $42,036,349 $120,837,302 $1,786

2004 66,544 $230,470,480 $109,874,597 $7,772,391 $36,500,000 $102,102,206 $1,534

2003 64,999 $189,943,144 $95,336,020 $7,414,288 $26,550,000 $87,921,732 $1,353

2002 60,516 $157,316,645 $85,243,204 $9,117,844 $19,750,000 $76,125,360 $1,258

2001 57,964 $131,864,083 $74,018,488 $7,919,527 $14,835,740 $66,098,961 $1,140

2000 38,110 $118,990,523 $64,969,108 $5,377,643 $10,143,772 $59,591,465 $1,564

1999 41,829 $107,963,620 $60,412,442 $5,653,519 $6,274,019 $54,758,923 $1,309

1998 38,044 $87,503,031 $49,733,021 $3,848,108 $265,255 $45,884,913 $1,206

1997 34,327 $71,319,118 $43,625,522 $3,447,893 $2,771,315 $40,177,629 $1,170

1996 32,528 $69,431,193 $37,068,953 $2,562,973 $9,077,575 $34,505,980 $1,061

1995 28,730 $67,075,259 $29,463,266 $3,071,239 $4,283,835 $26,392,027 $919

1994 22,651 $48,397,341 $21,974,299 $2,305,170 $1,300,105 $19,669,129 $868

1993 17,095 $38,471,739 $18,885,165 $2,107,982 $2,082,746 $16,777,183 $981

1992 16,954 $35,007,001 $16,988,357 $1,691,127 $883,070 $15,297,230 $902

Club’s progress at a glance

Growth

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

20,000

40,000

60,000

80,000

100,000

120,000

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

OF MEMBERSTOTAL ASSETS

GROSS REVENUE

NUMBER

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After a period of significant change and the challenge of multiple amalgamations, this year provided us with the opportunity to better understand the performance capabilities of our new clubs, and to reassess our priorities for major redevelopment projects.

The Group continued to show growth and a very pleasing profit of just over $8.7M was achieved. Our asset base increased to $250M, diversifying our contribution by business and by location.

With the additional three clubs, revenue increased by 14.43% but so too did operating costs which resulted in a wide scale review of club services and some success in clawing back overheads. Needless to say, the contribution from Mekong and Triglav exceeded our expectations and we will now begin the journey of master planning for these sites.

Increased revenue meant an increase in contribution by Mounties Group to the community and I am delighted to announce a new record for community support with $5,577,883 distributed in 2013-14. Of this, $2.6M was channelled towards our sub clubs and sporting groups to build a healthier and more active member base.

It is important we acknowledge member feedback for catering delivery at Mounties. We have moved quickly to resolve this and as this report went to print, the Club Catering Management Group have opened Emperor’s Buffet and Bistro East West, whilst works have commenced on building a new Vietnamese restaurant Bau Truong.

News from the northern sites is very positive with the redevelopment of Harbord Diggers now very clearly in sight. I invite you to read more about our plans for a new club at Freshwater and view artist impressions on the winning design, on pages 22 and 23.

Not wanting to disappoint members already eager for change, the Diggers delivered a soft refurbishment program including a redesign of the gaming floor, an extension to the outdoor gaming room and a new reception area. Manly Bowling Club also undertook refurbishment works, breathing new life into their downstairs bar and reinvigorating their lower bowling green.

To achieve such strong results is a reflection of the dedication of our board, our executive team and our staff.

I recognise that our staff are an important asset and we are particularly fortunate to have developed a high calibre team led very ably by Group CEO Greg Pickering. I would like to thank Greg and all of those who work tirelessly behind the scenes to ensure we remain one of the best performing clubs in the country.

To the hundreds of staff we employee to care for, and serve our members, thank you for your contribution to our vision “to provide a destination of choice for the community to trust and enjoy”.

I would also like to thank my colleagues on the board for their continued support and the significant contribution they have made to this year’s achievements. The work of our advisory committees at Harbord, Triglav, Mekong and Club Italia does not go unnoticed, nor does the kind hearted generosity of our Welfare Officers John Baron and Wal Edwards.

In closing, I would like to remind members that voting for the board of directors will commence on Sunday 19 October through to Saturday 25 October. Voting is a right of all members, and we encourage you to use your voice to guide the future of your club. The Annual General Meeting will be held on Sunday 26 October. I hope to see many of you there.

Kevin Ingram President

President’s report

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BuIlt new plAyGRound

for William Stimson Special School

A new record for community support with

$5.72 MIllIon distributed in 2013-14

RAnked 5th in NSW for World’s

Greatest Shave fundraising

lARGest 2-UP game in the world

hosted at Harbord Diggers

$70,000 raised at Mounties Group

annual charity race day in support of Bonnie Women’s Support Services and the Manly Women’s Resource Centre

$45,300 raised for Cancer Council

NSW at our inaugural

14,445 senIoRs entertained at senior’s concerts &

6,884 kIds entertained at family events

our key achievements and fast facts

Australian 128,672

Average pos spend per member

Group membership:

making us the largest club in Australia

106,849

$38.68 9.5%

khmer 6,706

Noting Asian languages reflect Fairfield whilst Arabic & Assyrian are predominantly Liverpool

key nationalities represented in our membership

Italian 11,561 serbian

9,239

Greek 2,941 Cantonese

11,997

Assyrian Aramaic 14,565

filipino tagalog 3,226

spanish 12,234

Vietnamese 35,839

Croatian 3,190

Arabic 30,944

hindi 8,042

Mandarin 4,612

suCCessful ACquIsItIon of Manly Fishos (to be relaunched in 2015 as Soldiers House Function Centre)

Mekong celebrated

21st birthday

oVeR 20,000 people entertained in Mounties Showroom

ouR CluBs

Harbord Diggers

suCCessful in its bid to redevelop

ouR ReACh

Total Facebook reach

of 4,409,342

22,635 digital community

ouR MeMBeRs

seRVInG

ouR CoMMunIty

8

suCCessful ACquIsItIon of Manly Fishos (to be relaunched in 2015 as Soldiers House Function Centre)

oVeR 20,000 people entertained in Mounties Showroom

ouR CluBs Mounties ranked

no 1 OLGR

State Rankings

Mounties won 2013 OOP’s Superior Service

Award for Large Clubs

IMpRoVInG MeMBeR fACIlItIes

New functional training studio & $1M worth of new cardio equipment for M1 Health & Fitness

Men’s change room renovation at Freshwater Fitness

Refurbishment of Manly Bowling Club greens & downstairs bar

New reception desk for Harbord Diggers

Extension of outdoor gaming & floor redesign at Harbord Diggers

D.A for new foyer at Mounties approved

Air conditioning upgrade at Club Italia

3 new restaurants scheduled for Mounties

ouR woRkfoRCe

87%

44

960,657

13%

62 employees recognised for combined total of

545 yeARs of seRVICe

11,000 houRs

spent in training

employees Group-wide

employees hiredlanguages spoken

permanent

casual

53% 47%women men

700

180 new

key suB CluB AChIeVeMents

Mounties Athletics Club brought home

9 Gold, 5 sIlVeR & 3 BRonze from State Masters Championships and

2 Gold, 1 sIlVeR & 4 BRonze at the Masters National Championships

JAyden lACh was selected to play for

Australia in the 10th ISF junior men’s softball championship

yussIf RIzVI, Aden sMIth,

JAde CAllAndeR & nAtAshA Bell

selected for state hockey squads

Mounties netball proudly boasted 12 players with

stAte seleCtIon

Mounties rugby league fielded

18 teAMs from U/6 to C Grade

Mounties junior soccer fielded 56 teams boasting

700+ plAyeRs and 150 coaches and managers

2014 Quinlan Shield

ChAMpIons

1.79M SMS sent to members

ouR ReACh

hours worked

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Hello members,

This 2013-14 financial report confirms that the expansion of the Group by amalgamation has resulted in a positive outcome for the Club and its members.

In the latter part of 2013 we amalgamated three new clubs into the Mounties Group. We now have a full year with those three clubs as part of the Group and the contribution has impacted what presents as a reasonable result.

The year started poorly with a quite significant defecit to our budget, after making some tough decisions early in Q2 it was pleasing to see our profitability return to expectation for the remainder of the year.

We continue to provide for our members, their club, and the community it serves – this is foremost in our focus. We must also continue to search for opportunities that will responsibly grow the Mounties Group. I am confident that this report confirms our commitment to the Club’s charter.

The following summarises our financial journey from 1 July, 2013:

Contributions 2014 2013

Gross Profit $48,442,121 $43,494,183

Overheads (inc Donations) ($39,919,822) ($38,143,621)

Profit Before Tax (Group) $8,522,299 $5,350,562

Income Tax $153,604 $105,204

Profit After Tax (Group) $8,675,903 $5,455,766

Ceo’s report

“ our result has been achieved by a team of very talented and committed people, our staff.

“

Audit processOnce again the leadership of our Finance Manager Ralph Wearne and the efforts of his team have delivered a strong and positive result for the Mounties Group. This report has been prepared for the scrutiny of our auditors their sign off confirms another great result.

Corporate governanceChanges to the Registered Clubs Act in 2004 require the production of a report on governance matters associated with the running of the Club, the activities of the board, and senior management. A number of the disclosures required by the Registered Clubs Act and Regulation have been duplicated in this report. The formal document (Secretary’s Register) will be available for inspection after the AGM, on written request.

neighbours and trading hoursWe continue to work to provide an environment which is safe, enjoyable, and free from negative impacts tend to associate with liquor and gambling. Our efforts have continued through 2014 with positive effect. Our neighbour relations program continues to ensure that the communities surrounding each of our premises provide us with the necessary feedback to improve our operations. Congratulations to our site General Managers, Darren and Dale, for their efforts in this regard.

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Factors affecting the result:

• A full year of trading for 3 amalgamated venues (2013 – 3 months)

• Gaming revenue increased by $12m

• Beverage revenue increased by $283K (3.4%)

• Overheads increased by $1.78m (4.7%)

• Member loyalty program had a total cost of $3.9m

• Fitness operations declined in profitability ($299k) in a continuing competitive market

• Catering loss (-$2.19m).

The key factors to note here are: • Increase in Current assets – $7.78m

Increase in Non Current assets – $233k Increase Equity less liabilities – $9,336,973

• The graph on the page 6 of this report tracks Mounties Group growth since 1992. It also depicts the value of member equity at $2,1851 at the end of FY 2014 – a healthy increase of $267 over 2013.

The operating result has improved member equity as follows:

Balance Sheet 2014 2013

Current Assets $22,070,952 $14,949,289

Non Current Assets $228,815,753 $227,922,583

Total Assets $250,696,708 $242,871,872

Current Liabilities $13,630,318 $16,244,750

Non Current Liabilities $3,800,174 $1,846,812

Total Liabilities $17,430,492 $18,091,562

Retained Equity $223,456,213 $224,780,310

Equity and Liabilities $250,886,705 $242,871,872

(1) It should be noted that the Registered Clubs Act prevents a member from obtaining this or any benefit that is not available to all members, unless approved by the members at the Annual General Meeting.

sportSport has been and always will be important to Mounties Group, and the success of the club.

Congratulations and thanks to the Sports Director Lorraine Dean, her Sports Committee, Sports Club Captain Jenny, Assistant Club Captain Dawn, and all of our sporting sub clubs, who contribute so much to club life. We couldn’t do it without you.

I mentioned in my report last year that we would be working toward a master plan for all our properties, not the least of which will be the development of the Club Italia land for our sporting needs. This work has commenced and will conclude with the consolidation of the plan early in 2015.

ResultThe report shows a profit for the Group of $8.69m for the year under review.

Revenues increased over 2013 year by $15.2m (14.43%), Profit increased by $3.22m (59.02%).

Annual General Meeting & election of directorsThe Annual General Meeting (AGM) is scheduled for Sunday 26 October 2014. It will be conducted at Mounties, whilst being video conferenced to the Harbord Diggers site. This is a great opportunity to give us your feedback and we welcome that (at any time). The meeting notice is posted elsewhere in this annual report and contains a copy of the resolutions proposed for member’s consideration at that meeting. If I can be of assistance in answering any questions don’t hesitate to let me know, otherwise, I look forward to seeing you on the day.

2014 is an election year, so I encourage all members to come along and vote for their preferred candidates. These are the people who are charged with the responsibility of providing direction for your club, and who look after your interests. Polling will take place from 19 October until 25 October. The results will be announced at the Annual General Meeting on 26 October.

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General operationsOur result has been achieved by a team of very talented and committed people, our staff. Without those team members none of our achievements would be possible. I encourage all members to congratulate our staff on their efforts during this past year.

I have recently announced some changes to our senior management team. Darren Marino has taken up General Management responsibility at Mounties, Dale Hunt will continue in the role of General Manager for our northern sites. I will take this opportunity to congratulate Caroline Lumley on her commencement in the role of General Manager. Caroline will be responsible for Mekong, Triglav, Mounties Bowling Club, and Club Italia. Thank you to each of the General Managers for their efforts in 2014.

harbord diggersAs Harbord Diggers approaches a very important time in its development, I would like to take this opportunity to thank General Manager Dale Hunt, and all of his team for the enthusiasm that they have shown for the “Dawn of a New Diggers”. Their tireless efforts have ensured that we will be celebrating the rebirth of that club in the near future. The team’s commitment over the past three years is exemplary and will ensure that the Diggers will again lead the club industry, this time into a new and unique market.

Thanks to all our members for their support as we bring this most important project to reality.

Bowling clubsThe efforts of all our bowling club management in Greg Silk and Tanya Newsome are equally important to the Group, and I acknowledge their efforts as part of the team.

other sitesThe introduction of Mekong, Triglav and Club Italia to the Mounties Group has been both challenging and worthwhile. My thanks go to all staff in those clubs and the leadership of Hung, Johnny and Frances respectively.

significant eventsI expect that the first stage of the Food and Beverage Masterplan at Mounties will be unveiled in the lead up to this year’s AGM. Bau Truong will offer a very unique menu of fine Vietnamese cuisine. The brand is well known for its offering, and we are honoured that they have agreed to produce that for us here at Mounties. Again, thank you to the members for your patience as we get this important project underway.

Work on the Humphries Rd foyer and porte cochere will commence in the next few months. I apologise that this has been delayed from the mid 2014 date I mentioned last year.

We have taken the opportunity to enhance the project with a further upgrade of our car parking so that members can find ample parking when they come to visit all of these new facilities at Mounties. Thank you in advance for your patience in what we know will be a difficult period of construction. The end result will be well worth the short term inconvenience.

I am proud of the efforts of the team in 2014, and I am cognisant of the responsibility that comes with providing strong and secure employment for our people. I do not take this responsibility lightly.

In closing, a special thanks to President Kevin Ingram and the board of directors for their policies, guidance and for the freedom they allow me in operating this business.

2015 has commenced and it will be the start of some very major developments within Mounties Group. Thank you for being part of that.

Greg Pickering

Chief Executive Officer

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“ we have taken the opportunity to enhance Mounties foyer project with a further upgrade of our car park so that members can find ample parking

“

Community grants reportIn 20141 the Mounties Group continued to make community grants at significant levels. This year, more than $5,577,883 was distributed through various programs and for a wide range of projects. Despite being a challenging trading year for the Club, we have continued to commit a significant part (40%) of our surplus to the community.

The most significant funding made available in FY 2014 was $1,627,015 which was made by way of donations and grants. This included ClubGRANTS funding.

Other support was provided as follows:

Sports Ground Expense (maintaining local sporting fields) $708,155

Children’s Christmas Party $136,406

Seniors Events $68,312

Carols by Candlelight $24,655

General Donations (inc ClubGRANTS) $1,627,015

Sub Club Expenses $1,419,751

Other Sport $1,215,221

ClubGRANTS is a scheme which sees clubs provide a portion of their total gaming revenue to recognised community projects. The scheme incorporates a process which scrutinises and ranks, local projects for this funding. The scheme is facilitated by local councils who best understand and plan for the broader social needs of local communities, the clubs are left with the final decision as to which projects they support.

Mounties Group actively participates in three (3) local council committees as part of the ClubGRANTS scheme. We are also fortunate to be able to fund a raft of other community support initiatives in all of our local areas (Fairfield, Liverpool, Warringah, and Manly).

As I mentioned last year, the introduction of Triglav and Mekong to the Mounties Group during this past year ensures a significant increase in the funding that is made available.

The next table shows how the Group has distributed the funds that have been made available by the ClubGRANTS1 scheme in 2014:

1 ClubGRANTS reporting year concludes 31 August, these figures reflect that period.

Community Report“ this year, more than $5.72 million was distributed through various programs and for a wide range of projects

“

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ClubGRANTS Mounties Harbord Mekong Triglav Group Minimum

Category 1 $613,294 $48,565 $91,390 $26,508 $779,757 $713,879

Category 2 $2,183,361 $286,700 $118,612 $36,851 $2,625,524 $1,047,021

Category 3 $303,582 $24,437 $40,823 $11,872 $380,714 $378,368

Total $3,100,237 $359,702 $250,825 $75,231 $3,785,995 $2,141,614

significant projects funded under ClubGRAnts through Mounties included:

Share Care Inc Program unite $10,000

Kookaburra Kids Neighbourhood Centre $10,000

Youth Off the Streets Fairfield outreach $11,000

Woodville Community Services Mental health first aid $11,519

Cabramatta Community Centre Sustainable communities through enterprise $14,000

Wheels Towards Independence “We Can Cook” $16,520

Special Olympics Disadvantaged services $20,000

Parks Community Network Vision wellness & volunteer support $23,340

Learning Links Financially disadvantaged kids “struggling to learn” $40,000

Ted Noffs Foundation Social enterprise/job creation $48,394

Street University “Streets to Success” $96,400

Ted Noffs Foundation Street University Campus $115,000

significant projects funded under ClubGRAnts through harbord diggers included:

Marine Rescue NSW Radio equipment $2,750

Bowel Care Australia Education kits $3,000

Heart Kids NSW Transport cost assistance $4,200

Stewart House Rash vests $5,250

Cerebral Palsy Alliance Technology and equipment $6,401

Royal Life Saving Courses & training $7,980

Volunteer Marine Rescue Emergency services $8,400

significant projects funded under ClubGRAnts through Mekong included:

Vietnamese Community in Australia New journey for new migrants $10,000

Cabramatta Community Centre Multicultural active seniors $11,760

Vietnamese Australian Welfare “Make them Happy” $12,500

Vietnamese Elderly Friendship Elderly life is precious $15,000

Vietnamese Parents Assoc Community education $9,150

Vietnamese Aust. Mutual Support Community education $19,000

significant projects funded under ClubGRAnts through triglav included:

Lighthouse Care “We Care” $4,950

Fairvale High School Student volunteering program $5,000

Fairfield City Art Society 2014 exhibition $8,000

HASA Community education $3,000

Woodville Community Services Health promotion $4,118

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Mounties support for the Noffs Foundation’s Street University project in Liverpool continues to gain recognition as a project which leads its field in engaging with marginalised youth. We can be proud in knowing that Mounties was part of the first of (now) four Street Universities. There has been great interest in the concept now that it has been recognised as best meeting the needs of disadvantaged youth.

Changes to ClubGRANTS in 2011 saw the introduction of Category 3 for major infrastructure projects. Mounties has contributed $380,714 ($307,427 – 2012) to this fund in the 2014 year. The Fairfield LGA is a significant contributor to this category, and deserves to receive consideration for a major project in the future. I know that our Mayor has been lobbying for some consideration for Fairfield in the allocation of Category 3 funds. It should also be noted that in the last few months a more structured process for applying for these funds has been advertised.

I would like to take this opportunity to acknowledge the efforts of the local committees for the role they play in making sure that our Community Grants Committee is aware of the most relevant projects for funding. The work to prioritise all the eligible projects is invaluable to our committee decision making process. Executive Assistant to the CEO, Nalan, is a member of two local committees and I thank her for her efforts in that regard.

As I mentioned earlier Mounties Group has provided more than $5.72m in Community Grants in the year under review. This is considerably more than the amount required under the ClubGRANTS program.

Of course, we receive many requests for financial and other assistance from a wide range of community organisations and individuals, and we do our best to assist as many as possible. Requests are always assessed responsibly and where possible, supported at an appropriate level. Where we are able to support projects, we always make sure that the community is the beneficiary.

I am proud to have been Chairman of a committee that is able to oversee the distribution of club funds to the members of our community. Accordingly, I would like to acknowledge the efforts of the Grants Committee for their commitment and diligence – John Dean, Trevor Forman, Bill McGrory, Marilyn Price.

Steve Fitzpatrick Chairman

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“ harbord diggers family friendly AnzAC day service continues to grow in popularity

“

our work in the community

During the 2013/2014 financial year Mounties Group supported local communities and sporting group

with funding totalling a record $5.72m.

Pictured here are ClubGrants recipients from Mounties, Mekong and Triglav.

With the assistance of students from Bonnyrigg High School, Mounties offered free seminars for members

55 years & over to learn how to better use their mobile phones, laptops and tablets. Whilst our members

gained practical online skills, the students used the project to fulfil HSC work placement requirements.

Mounties Group got into the swing of

things and partnered with Liverpool Golf Club to launch the

Liverpool Junior Golf Academy.

Following intense bushfires in late 2013,

Mounties Group recognised the efforts

of the Rural Fire Service with a donation

of $25,000 towards equipment and training.

An eager team of Mounties Group

employees walked 60kms to raise

money for women’s cancers as part of

the “Weekend to End Women’s Cancer”.

Triglav threw its support behind member Barry

Stanshall in his bid to raise money for

seriously ill children with kidney disease.

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Our continued support of the Bonnyrigg

High School St Johns Ambulance Cadets assisted them to

launch a dedicated Community First Aid

Centre.

We hosted our first ‘tea party’ themed cake decorating

competition – ‘Icing on the Cake”

to launch 2014 Biggest Morning Tea

celebrations.

A total of 27 community projects

in southwest Sydney received

funding to the value of $516,094

at our western sites ClubGRANTS Presentation Night.

Mekong made friends with the

NSW Vietnamese Elderly Friendship

Association thanks to a generous donation

towards their services for the aging.

Harbord Diggers helped keep the beaches safe at Freshwater with

crucial sponsorship of IRB equipment.

Emerging wheelchairs athletes received a

boost to develop their skills when Mounties

Group agreed to sponsor their Talented

Athlete Program

Mounties Group lent a helping hand

to children with disabilities, donating in excess of $60,000 to William Stimson Public School in Wetherill Park to

open a purpose built playground.

Mekong successfully launched the inaugural Mrs

Vietnam Pageant to showcase the culture

and charitable work of Australian

Vietnamese women.

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our commitment to responsible gamblingMounties Group is committed to providing the highest standards of customer care and responsible gambling.

Responsible gambling in a regulated environment is when consumers have informed choices and can exercise a rational and sensible choice based on their circumstances. It means a shared responsibility with collective action by the gambling industry, government, individuals and communities.

Whilst an individual’s decision to partake in gaming is a personal choice, it is our responsibility to inform our customers about our gaming facilities and promote the services and support available to them should they seek help for problems associated with gambling.

self-exclusion schemeThe Club provides the most comprehensive self-exclusion scheme in NSW to its patrons. Mounties Group is one of the few clubs which has been providing a multiple venue self-exclusion scheme since 2002, preventing the need for patrons to visit each individual venue from which they wish to be self excluded.

The Group also offers its patrons a number of ways in which to sign up to its self-exclusion scheme:

1) in person at any Mounties Group club, at any time;

2) through a BetSafe counsellor as part of a counselling session; and

3) remotely by utilising BetSafe’s online self-exclusion service (at www.betsafe.com.au/self_exclusion).

Since 2001 we have assisted 563 patrons to ban themselves from gambling at the Mounties Group. According to statistics from the recent Productivity Commission Report, Mounties Group is one of, if not the, most effective venues at processing self-exclusions in NSW.

problem gambling counsellingWhilst the majority of other NSW gaming venues use their industry body’s referral service, Mounties patrons are referred to the fully integrated BetSafe problem gambling counselling service. The key characteristics of BetSafe’s counselling service are:

• 24 hour telephone counselling;

• business hours, evening and weekend face-to-face appointments;

• experienced problem gambling counsellors, a number of which have over 20 years’ experience;

• no limits on the number of sessions;

• no waiting lists;

• support for culturally and linguistically diverse (non-English speaking) clients

• flexible treatment models (as opposed to rigid cognitive therapy based models); and

• comprehensive counselling and support to family members of problem gamblers.

trainingAll staff members, including senior management, obtained Responsible Conduct of Gambling (RCG) and Responsible Service of Alcohol (RSA) certificates approved by the OLGR as conditions of their employment. In addition to this all staff undertake biennial problem gambler awareness training conducted by BetSafe to ensure any staff member is able to respond appropriately to a request for assistance. This additional training covers practical topics such as:

1) what to do when approached by a problem gambler;

2) how a problem gambler will react; and

3) the specific help available to patrons of the Club.

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our commitment to responsible gamblingpolicies and proceduresMounties Group has adopted BetSafe’s comprehensive policies and procedures manual. BetSafe’s policies and procedures cover such topics as dealing with:

1) unattended minors;

2) requests for assistance from family members; and

3) admissions of a gambling problem.

Although there are no legislative requirements relating to these types of incidents, the Group’s policies and procedures ensures it is exceeding the legislative requirements and showing a proper duty-of-care to all patrons.

Information and supportAll Mounties Group clubs display many additional signs and brochures to increase awareness and ensure patrons are easily able to access support services. BetSafe business cards, responsible gambling brochures and self-exclusion brochures are displayed at all clubs and the Group has even taken the step of developing a dedicated “help brochure” in the 12 most common languages in southwest Sydney.

ComplianceAll Mounties Group clubs are subject to BetSafe compliance audits every three months. These audits check for compliance in relation to the following requirements:

1) entry signage;

2) ATM & CRT signage;

3) gaming area signage;

4) gaming machine compliance;

5) keno signage;

6) TAB signage;

7) bar signage;

8) advertising compliance; and

9) website compliance.

BetSafe provides a comprehensive nine page report outlining requirements and recommendations. The Group has made the further commitment to respond to crucial report recommendations within 24 hours.

other initiativesMounties Group has adopted the ClubsNSW Registered Clubs Responsible Conduct of Gambling Code of Practice – Best Practice Guidelines, and has lodged a Responsible Gambling Affidavit with the (former) Liquor Administration Board (“LAB”).

All Mounties Group venues are certified by the Global Gambling Guidance Group (G4) as a world’s best practice responsible gambling venue.

The Group declines all patron requests to cash cheques. This goes beyond the requirements set out in Sections 29-31 of the Regulation (which allows cashing of cheques that are made out to the venue; below $400; for one single person per day; and not previously dishonoured).

All club advertising and promotions comply with the Act and Regulations.

Six out of the seven Mounties Group clubs have car parking facilities for members and guests. Several procedures are used to ensure that children are not left unattended in cars whilst the drivers are attending the Club, including signage informing patrons not to leave children unattended; video surveillance of the car park; regular patrolling by licensed security personnel during weekend evenings; and the implementation of emergency procedures to remove children left locked in cars, reporting children at risk, and disciplining members responsible.

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harbord diggers redevelopment unveiled

The Harbord Diggers development concept is considered a world first, with the creation of a truly intergenerational community hub.

With changing community needs and an ageing population in Australia, the entire community, no matter what age, needs a place to meet, gather and call their own.

In today’s busy society, we often don’t know our neighbours, don’t see our family as frequently or spend enough quality time with our kids. But with the new Harbord Diggers, we now have an opportunity to create a venue to facilitate all this and more.

A place where local children can learn to swim, be educated and cared for, all at the same time that our older aged residents have a safe and secure living environment that provides plenty of activities and social engagement.

A place where you can enjoy a beer with a mate or a relaxing meal with your family. A place where we can encourage healthy living, where you can take a break at the day spa, enjoy great entertainment or simply connect with friends and family.

More importantly, we will build an outstanding community asset that combines entertainment, living, fitness, dining, wellbeing, childcare and enjoyment - all in one place. The creation of an intergenerational community hub, a new dawn for the Diggers and our club of the future.

Key features of the final Harbord Diggers design include:

• a design approach informed by the local landscape & character of the area

• enhanced views & accessibility through the site

• improved flexibility & accessibility for all community members

• world class hospitality & entertainment facilities with panoramic views

• a high quality seniors living village with 1 to 3 bedroom apartments

• modern community facilities including a childcare centre & state-of-the-art fitness & aquatic centre

• improved landscaped areas & open public space.

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NOTICE is hereby given that the Annual General Meeting of Mount Pritchard & District Community Club Ltd ABN 98 000 458 622 (“the Club”) will be held on Sunday, 26 October 2014 at 10:00am in the Showroom at the Club’s premises at 101 Meadows Road, Mt Pritchard NSW 2170, (and video conferenced to the Harbord Diggers premises at Evans Street, Freshwater NSW).

BuSINESS

1. To receive and consider the Report of the Directors.

2. To receive and consider the Financial Statements.

3. To receive and consider the Auditors Report.

4. To receive the report of the Returning Officer regarding the Election of Directors.

5. Any other business of which proper notice has been given.

Resolution 1 – life membershipTo consider, and if thought fit, to pass the following Resolution to elect Mr Stephen Edwards as a Life Member of the Club:

“That Mr Stephen Edwards be elected as a Life Member of the Club in recognition of his distinguished, exceptional and meritorious service.”

EXPLANATORY NOTE

– The Board has resolved to recommend Mr Stephen Edwards for election to Life membership of the Club under Rule 25 of the Club’s Constitution in recognition of his distinguished, exceptional and meritorious service.

– Under Rule 25 of the Club’s Constitution a person may be elected as a Life Member at the Annual General Meeting.

– Life Membership Resolution 1 will be passed if at least a two thirds majority of those eligible members present and voting at the meeting, cast their vote in favour of the Resolution.

– Life Members and financial Club Members who have been members for 24 continuous months are entitled to vote on the Resolution.

Resolution 2 – ordinary resolutionTo consider, and if thought fit, to pass the following ordinary resolution:

“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the members of the Board, during the period preceding the next Annual General Meeting, receiving the following benefits having a total value not exceeding $250,000 and the members further acknowledge that the benefits outlined in paragraphs (a) to (g) are not available to members generally, but only to the Directors of the Club (and those other persons identified in this Resolution):

(a) reasonable meals and refreshments for each Director in conjunction with each Board or Committee meeting;

notice of Annual General Meeting

24

(b) reasonable costs or expenses in relation to the professional development and education of Directors including:

(i) attending meetings of associations of which the Club is a member or Directors of the Club are members;

(ii) attending seminars, lectures, trade displays, organised study tours, fact finding tours and other similar events as may be determined by the Board from time to time;

(iii) attending other registered clubs or gaming venues for the purpose of observing their facilities and methods of operation;

(iv) attending conferences and training sessions in relation to their roles and responsibilities under the Registered Clubs Act 1976, the Corporations Act 2001 and any other relevant legislation;

(c) reasonable costs or expenses of attending functions whilst representing the Club with partners where appropriate;

(d) reasonable costs or expenses of travelling by either private or public transport to and from Directors’ or other duly constituted meetings, held within the Club or elsewhere;

(e) reasonable costs or expenses in relation to such other duties including entertainment of special guests of the Club and other promotional activities approved by the Board;

(f) reasonable costs or expenses in relation to the provision of uniforms and associated apparel for the use of each Director when representing the Club; and

(g) the provision of reserved parking spaces at the Club for Directors’ use when attending the Club to carry out their duties”.

EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act 1976 (Registered Clubs Act) the Club is required at each Annual General Meeting to have approved by ordinary resolution, the benefits to be provided to the Directors of the Club. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.

– To be passed, Resolution 2 must receive a simple majority of votes in its favour from those members present at the meeting who are eligible to vote and who vote on the Resolution.


– The Board recommends Resolution 2 to the meeting.


“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the members of the Board, during the period preceding the next Annual General Meeting, receiving the following benefits having a value not exceeding $50,000 and the members further acknowledge that the benefits outlined are not available to members generally, but only to those members who are Directors of the Club:

(a) Reasonable costs or expenses in relation to:

(i) sponsorship of sub clubs;

(ii) holding of annual picnics;

(iii) attending presentations to members or other persons acknowledging services deemed by the Directors to be of benefit to the Club and/or the community; and

(iv) attending sporting matches, functions, corporate box activities, promotions, dinners, events or official functions whilst representing the Club in its corporate capacity pursuant to any sponsorship arrangement or other similar arrangement.

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(b) The Club conducts its business in the commercial world. From time to time, as a result of the Club engaging in corporate sponsorships, or ancillary to the Club’s commercial dealings with trade suppliers and service providers, the Club may become entitled to benefits. The benefits may take the form of invitations to functions, events, sporting matches, dinners or other forms of benefits. The Board is keen to pass on to members these benefits when it is appropriate to do so. The members acknowledge that it is not appropriate in every case to make the benefits available equally to all members. The members acknowledge that it is appropriate for the Board to determine which benefits should be offered to the members equally, and which benefits, in the best interests of the Club, should be offered to persons who are in the best position to represent the Club in its corporate capacity. Accordingly, the members acknowledge that the Board may receive benefits which are not offered equally to all members.”

EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required at each Annual General Meeting to have approved by ordinary resolution, the benefits to be provided to the Directors of the Club. Resolution 3 deals with the benefits which are provided as part of corporate/community sponsorship by the Club. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.





“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the members of the Board, during the period preceding the next Annual General Meeting, receiving honoraria to the positions named and for the sums referred to below, in respect of services rendered to the Club and the members further acknowledge that the honoraria are not available to members generally but only to those members who are Directors of the Club:

(i) $15,000 to the President; and

(ii) $12,000 to each other Director”.

EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required to have the honoraria for Directors approved by the members at the Annual General Meeting. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.

– Honoraria are paid annually in arrears, against a claim made by a director. The Board has recently approved that claims may be lodged, and paid 6 monthly in arrears.





“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the Club expending the reasonable cost of giving each Life Member, Director and member of the Harbord Advisory Committee a ham and a carton of beer (or equivalent) at Christmas, and the members further acknowledge that this benefit is not available to members generally, but only to those members who are Life Members, Directors of the Club, or members of the Harbord Advisory Committee.”

EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required at each Annual General Meeting to have approved by ordinary resolution, the benefits to be provided to Directors or other classes of membership of the Club. The benefit which is provided is the standard benefit which has been provided to Life Members, Directors and members of the Harbord Advisory Committee over a number of years. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.





“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the to the members undertaking the following roles, during the period preceding the next Annual General Meeting, receiving honoraria to the positions named and for the sums referred to below, in respect of services rendered to the Club and the members further acknowledge that the honoraria are not available to members generally but only to the following Sports Committee members:

(i) $1,000 to the Club Captain; and

(ii) $750 to the Assistant Club Captain”.

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EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required to have the honoraria for Office Bearers approved by the members at the Annual General Meeting. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.





“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the Welfare Officers, during the period preceding the next Annual General Meeting, receiving honoraria to the positions named and for the sums referred to below, in respect of services rendered to the Club and the members further acknowledge that the honoraria are not available to members generally, but only to the Welfare Officers:

(i) $3,000 to Mounties Welfare Officer; and

(ii) $1,200 to Harbord Welfare Officer”.

EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required to have the honoraria for special services rendered to the Club approved by the members at the Annual General Meeting. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.





“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the members of the Harbord Advisory Committee, during the period preceding the next Annual General Meeting, receiving honoraria to the positions named and for the sums referred to below, in respect of services rendered to the Club and the members further acknowledge that the honoraria are not available to members generally, but only to those members who are elected to the Harbord Advisory Committee:

(i) $2,500 to the Chairman; and

(ii) $2,000 to each other Committee Member”

EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required to have the honoraria for the Harbord Advisory Committee approved by the members at the Annual General Meeting. The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.





“That pursuant to the Registered Clubs Act 1976, the members hereby approve and agree to the members of the Committees of the Club Italia Sub Club, the Triglav Sub Club and the Mekong Sub Club receiving the following benefits, and the members further acknowledge that the benefits outlined in paragraphs (a) to (f) are not available to members generally, but only to those persons identified in this Resolution:

(a) reasonable meals and refreshments approved by the Board for each Committee member in conjunction with each authorised Committee meeting;

(b) reasonable costs or expenses in relation to the professional development and education of Committee members as approved by the Board, including:

(i) representing the Club at meetings of associations of which the Club is a member;

(ii) attending seminars, lectures, trade displays, organised study tours, fact finding tours and other similar events as may be approved by the Board from time to time;

(c) reasonable costs or expenses of attending functions whilst representing the Club with partners where appropriate and approved by the Board;

(d) reasonable costs or expenses of travelling by either private or public transport to and from meetings approved by the Board, held within the Club or elsewhere;

(e) reasonable costs or expenses approved by the Board in relation to such other duties including entertainment of special guests of the Club and other promotional activities; and

(f) reasonable costs or expenses approved by the Board in relation to the provision of uniforms and associated apparel for the use of each Committee member when representing the Club.”

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EXPLANATORY NOTE

– Pursuant to the requirements of the Registered Clubs Act the Club is required to have any benefits that are not generally available to all full members of the Club authorised by the members in General Meeting.

– The benefits proposed by this resolution are associated with the Committees of the sub clubs at the recently amalgamated premises: Mekong, Triglav, and Club Italia.

– Members will note that in all cases the Board must approve these benefits.

– The Board has determined that such benefits will only be provided where approval is given in advance of the expenditure.

– The purpose of this resolution is to comply with the requirements of the Registered Clubs Act.




Resolution 10 – special resolutionTo consider, and if thought fit, to pass the following resolution to amend the Club’s Constitution, which will be proposed as a special resolution:

“That the Constitution of Mount Pritchard & District Community Club Ltd be amended by:

1. Deleting Rule 54 in its entirety and replacing it with the following new Rule 54:

‘54 (a) A member is ineligible to be nominated for election to the Board, to hold office on the Board, or to vote upon the election of the Board if that member:

(i) as at the date of the closing of the roll of members eligible to vote in the election of the Board is either currently suspended from their rights and privileges of membership, or, has been found guilty of any charge brought against that member pursuant to Rule 49 of this Constitution within a period of 8 years immediately prior to the date of the closing of the roll;

(ii) has at any time been convicted of an indictable offence;

(iii) is a former employee of the Club whose services were terminated by the Club for misconduct;

(iv) is a director or top executive (as defined in the Registered Clubs Act and regulations to it) of another registered club;

(v) is the licensee or manager of a hotel;

(vi) is a director of, or controls the composition of the board of, any company which holds a liquor licence for a hotel;

(vii) is a sole trader, or partner in a partnership, which is a party to a contract with the Club;

(viii) subject to Rule 54(b), is a director of, or controls the composition of the board of, any company which is a party to a contract with the Club; or

(ix) subject to Rule 54(b), holds more than 50% of the voting rights in any entity which is a party to a contract with the Club.

(b) Rule 54(a)(viii) and Rule 54(a)(ix) shall not apply to render a member ineligible to be nominated for election to the Board or to vote on the election of the Board, and, Rule 54(a)(viii), Rule 54(a)(ix), Rule 80(p) and Rule 80(q) shall not apply to render a member ineligible to hold office on the Board, if:

(i) the company which is a party to the relevant contract with the Club is a related body corporate of the Club;

(ii) the member is appointed by the Club as a director of the company which is a party to the relevant contract with the Club;

(ii) the member holds office on the board of the company which is a party to the relevant contract with the Club, ex-officio because of their office on the Club’s Board;

(iii) the member controls the composition of the board of the company which is a party to the relevant contract with the Club, as the appointed representative of the Club; or

(iv) the member controls more than 50% of the voting rights in the entity which is a party to the relevant contract with the Club, as the appointed representative of the Club.’

2. Adding the words ‘subject to Rule 54(b)’ at the beginning of each of Rule 80(p) and Rule 80(q).”

EXPLANATORY NOTES

1. Rule 54 of the Constitution sets out circumstances when a member is ineligible to be nominated for election or hold office on the Board, or vote in Board elections, and this includes when a member is a director of, or holds a controlling interest in, a company or other entity which is a party to a contract with the Club. The Club is undertaking significant projects to redevelop some of its properties and for other business opportunities. The corporate structure of the Mounties Group may change to include one or more wholly owned subsidiaries, and, the Club may hold some ownership rights and/or have the right to appoint a representative to the board of other organisations that might be involved in these projects.

2. Therefore, it is proposed to amend Rule 54 so that a member remains eligible to be nominated for the Club’s Board, to hold office on the Club’s Board or to vote in Board elections, provided the member:

(a) is appointed to the board of that other organisation by the Club as its representative; or

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(b) holds their interest in that other organisation as a result of being appointed by the Club.

3. A copy of the current Constitution is available for members on the Club’s website.

4. To be passed, Resolution 10 must receive votes in its favour from not less than three quarters of those members who being eligible to do so, vote in person on that Special Resolution. Financial Life Members and Club Members who have been members for 5 continuous years are entitled to vote on Resolution 10.

Resolution 11 – special resolutionTo consider, and if thought fit, to pass the following resolution to amend the Club’s Constitution, which will be proposed as a special resolution:

“That the Constitution of Mount Pritchard & District Community Club Ltd be amended by:

1. Adding the following new definition to Rule 2(a):

”premises” means the licensed premises of the Club to which a Club Licence relates.

2. Replacing the definition of “Club Licence” in Rule 2(a) with the following new definition:

“Club Licence” means a club licence held by the Club under the Liquor Act.

3. Deleting the word ‘licensed’ from Rule 8(c).

4. Adding the words ‘or any other property’ after the word ‘premises’ in Rule 13.

5. Adding the words ‘or any other property owned or occupied by the Club’ after the word ‘premises’ in Rule 29(b).

6. Deleting the words ‘Casino, Liquor & Gaming Control Authority’ from Rule 33(f) and replacing them with the words ‘Independent Liquor & Gaming Authority’.

7. Deleting Rule 50(a) to Rule 50(c) inclusive in their entirety and replacing them with the following new Rule 50(a) to Rule 50(c):

“(a) The Secretary, or any other authorised person (having the meaning given by section 77 of the Liquor Act) has the power to refuse entry to, require a person to leave, or remove a person from, the premises of the Club or any other property owned or occupied by the Club, if:

(i) in the opinion of the Secretary or other authorised person, the person is intoxicated, violent, quarrelsome, indecent or disorderly;

(ii) the person’s presence on the Club’s premises or any other property owned or occupied by the Club, in the opinion of the Secretary or authorised person, may render the Club or the Secretary liable to a penalty under any applicable law;

(iii) the person has engaged or used any part of the Club’s premises or any other property owned or occupied by the Club for an unlawful purpose;

(iv) the person smokes, within the meaning of the Smoke-Free Environment Act 2000, while on any part of the Club’s premises or any other property owned or occupied by the Club that is a smoke-free area within the meaning of that Act;

(v) the person uses, or has in his or her possession, any substance that the Secretary or authorised person suspects of being a prohibited plant or a prohibited drug;

(vi) the person is a person whom the Secretary or authorised person, under the conditions of the Club Licence or according to a term (of the kind referred to in Section 134 or Section 136D of the Liquor Act) of a local liquor accord, is authorised or required to refuse access; or

(vii) the person has engaged in conduct which may be prejudicial to the interests of the Club or which may be conduct unbecoming of a member or render the person unfit for membership.

(b) The Secretary or the senior employee of the Club then on duty (‘the senior employee’) may immediately suspend the membership of a person who is refused entry to, required to leave, or removed from, the Club’s premises or any other property owned or occupied by the Club under Rule 50(a). The Secretary or the senior employee must then make a written report to the Board within 7 days of the date of the suspension. The report must set out the facts, matters and circumstances giving rise to the suspension.

(c) Any suspension of a member by the Secretary or the senior employee pursuant to Rule 50(b) will continue until further notice is given to the member pursuant to Rule 49 or for 6 weeks, whichever is the earlier.’

8. Adding the words ‘or any other property owned or occupied by the Club’ after the word ‘premises’ in Rule 56(t), Rule 59(j), Rule 60(c), and Rule 60(d).

9. Deleting the words ‘section 41C of the Registered Clubs Act’ from Rule 78(f) and replacing them with the words ‘Part 4A of the Registered Clubs Act’.

10. Replacing the word ‘causal’ in Rule 81 with the word ‘casual’.

11. Adding the words ‘postponement or’ before the word ‘cancellation’ in Rule 85A(b).”

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EXPLANATORY NOTES

(1) This special resolution amends the Constitution to differentiate between ‘premises’ on which the Club operates its registered club business under the relevant club licence for the premises, and, other property owned or occupied by the Club where it will operate other business activities. This change is proposed because some parts of the Constitution apply specifically to the registered club business operations, such as Rule 8(c) of the Constitution.

(2) Rule 50 of the Constitution is amended to confirm the Club’s right to immediately exclude members and other patrons from property owned or occupied by the Club (in addition to the registered club premises) for inappropriate behaviour as listed in the Rule.

(3) This special resolution also updates the Constitution to reflect current legislation applicable to registered clubs, such as the name of the relevant regulator is now the ‘Independent Liquor & Gaming Authority’ and Part 4A of the Registered Clubs Act sets out certain requirements for Directors to disclose a material personal interest in the affairs of the Club.

(4) This special resolution also amends Rule 85A(b) to provide that if a special General Meeting is called by or upon request of a certain group of members and those members then want it postponed, then those members could be required to pay the costs of the postponement to avoid inconvenience to the members as a whole.

(5) A copy of the current Constitution is available for members on the Club’s website.

(6) To be passed, Resolution 11 must receive votes in its favour from not less than three quarters of those members who being eligible to do so, vote in person on that Special Resolution. Financial Life Members and Club Members who have been members for 5 continuous years are entitled to vote on Resolution 11.

By order of the board

Greg PickeringSecretary & Chief Executive Officer

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“ family friendly? yes we are!

“

source and application of fundsSource of funds Source of funds other activities

Application of funds Application of funds direct

Application of funds

Direct other activities

Application of

funds indirect

Bars

Bars

FitnessCentres

Entertainment& raffles

Catering &Booking Fees

Member Loyalty& Gift Shop

Memberships

Keno & TABInterest Other

Direct

Indirect

Gamingmachines

Otheractivities

Gamingmachines

Otheractivities

FitnessCentre

Keno & TABEntertainment& raffles

Memberships

Catering

Resorts

Member Loyalty& Gift Shop

Administration& staff on costs

Advertising& promotion

Club services

Community support expenses

Depreciation & financing

Repairs &maintenance

Other

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your directors

Kevin Ingram

Qualifications and special responsibilities

- Club member 1972-current

- Club Life member

- Club Director 1980-current

- Club President 2003-current

- Club Vice President 1985-1995 and 1998-2003

- Minute Secretary – 4 years

- Entertainment Director 1993-2003

- Club Editor Publicity Officer 2003

- Catering Director 1989-1992

- Leagues Clubs Association delegate 2006-current

- ClubsNSW Northern Region delegate 2006-current

- RSL Services Club Delegate 2006-current

- Life member Parramatta District Junior Rugby League Club

- Life member Parramatta District Rugby League

- Life member Lawn Bowls sub club

- Retired Pool Manager

Current Sub Committee Membership

- Audit & Governance Committee

- Constitution Committee (Chair)

- Correspondence Committee

- Remuneration Committee (Chair)

Declared Interest in Contracts Nil

John Dean



- Club Life member

- Director 1997-current

- Vice President 2003-2009, 2011-current

- Treasurer 2007-current

- Sports Director 1997-2003

- Sports Committee 1995-2008

- Audit & Governance Committee member 2009, 2011-current

- Gaming Committee Chair 2013-current

- Gaming Committee member 2009-current

- Assistant Club Captain 1995

- Club Captain 1996 and 1997

- Life member Mounties Soccer Club

- Quinlan Shield delegate 1996-2010

- Engineering Manager


- Audit & Governance Committee

- Constitution Committee

- Community Grants Committee

- Gaming Committee (Chair)

- Remuneration Committee


Lorraine Dean




- Sports Director 2012-current

- Minute Secretary 2011-current

- Sports Committee 2008-2009, 2012-current

- RSL and Service Clubs Association delegate 2011-current

- Correspondence Committee Chair 2011-current

- OH&S Committee – Board representative 2008-2011

- Club Captain 2008

- Assistant Club Captain 2006-2007

- Life member Netball

- President Netball 1998-current

- Constitution Committee 2011

- Community Grants Committee 2011


- Building Defects Committee

- Sports Committee (Chair)


Directors:

Ingram, Kevin (President)

Dean, John Joseph

Dean, Lorraine

Edwards, Stephen

Fitzpatrick, Steve

Forman, Trevor

Hansen, Leon

Henry, Noel

McGrory, William

Murphy, Thomas

Price, Marilyn

Your directors submit their report for the year ended 30 June 2014.

The names and details of the directors in office during the financial year and until the date of this report are as follows:

Chief Executive Officer: Pickering, Gregory

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- Club Life member


- Club Vice President

- Delegate to ClubsNSW

- Community Grants Committee Chair 2000-current

- Pubilcity Director 2012-current

- Delegate to Federation of Workers Clubs

- President Snooker Club and committee member 29 Years

- Life member Snooker Club

- Quinlan Shield Life member

- Quinlan Shield Secretary/Recorder/Delegate/ Mounties Team Captain

- Customs Broker (47 years)


- Community Grants Committee (Chair)

- Gaming Committee

Declared interest in contracts Nil




- Leagues Clubs Association – Standby delegate

- Life member Junior Rugby League




- Gaming Committee





- Catering Director 2006-current

- Sports Committee 2003-current

- Grants Committee 2005-2010

- Gaming Committee 2004-2010

- ClubsNSW delegate 2004, 2010

- Entertainment Director 2011

- Publicity Director 2011

- Director overseeing Mounties Rugby League Club 2006-current

- Member Mounties Junior Rugby League Club

- Operations Manager



- Sports Committee





- RSL Services Association delegate 2011-current



- Harbord Advisory Committee

- Sports Committee


Stephen Edwards Stephen Fitzpatrick

Leon HansonTrevor Forman

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William McGrory




- Entertainment Director 2011-2012

- FCSWC delegate




- Constitution Committee




Thomas Murphy


- Club Foundation member 1964-Current

- Club Life member

- Assistant Club Captain 1993

- Club Captain 1994


- Beverage Director 2013-current

- Sports Committee 1995-2003, 2006-2009

- Delegate ClubsNSW 1995-2003, 2005-2007, 2009-current

- Catering Director 2003-2005

- President Indoor Bowls 1989-current

- Life Member Indoor Bowls

- Retired

Noel Henry




- Leagues Clubs Association – Standby delegate




- Gaming Committee

- Sports Committee





- Community Grants Committee 2002-current

- Beverage Director 2008-2010

- Building Defects Committee Chair 2010-current

- Entertainment Director 2013-current

- WHS delegate - current

- Sports Director 2004


- Leagues Club Association delegate 2006-current

- RSL Services Association delegate 2007-current

- Gaming Committee Chair 2006

- Gaming Committee 2004-current

- Sports Committee 2001-2007, 2009-2010

- Assistant Club Captain 1999-2000

- Life member Junior Soccer

- Full-time domestic engineer


- Building Defects Committee (Chair)



- Gaming Committee

- Sports Committee


Marilyn Price

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principal activitiesThe principal activity of Mt Pritchard & District Community Club Ltd (the “Club”) is the encouragement of sport and the provision of accommodation and facilities for members and the community, by operating clubs licensed under the provisions of the Registered Clubs Act 1976 as amended.

The number of members at the year end was 106,849 (2013: 108,114).

Measurement of successThe Club measures success by focussing on two key areas:

1. The financial performance of the Club, measured through:

(i) Earnings before interest, tax, depreciation, amortisation, rent, and donations (EBITDARD)

(ii) Revenue

(iii) Wages costs

(iv) Profitability

(v) Patron visitations

(vi) Return on capital employed

2. The provision of social welfare for Club members and the community.

operating results for the yearThe net profit of the Club for the financial year ended 30 June 2014 after providing for income tax was $8,675,903. (2013: $5,455,766).

Review of operationsA substantial improvement on last year with most of our clubs improving contribution. The two stand out clubs were Mekong and Triglav who both significantly exceeded our expectations for the year. Last year’s numbers were also impacted by “one off” business combination costs associated with the amalgamations of Mekong, Triglav and Club Italia under Acounting Standard AASB3.

The Club also continued its positive support of the community. For the year ending 30 June 2014 community contributions amounted to $5,577,883 (2013: $4,882,555).

The Club continues to perform exceptionally well in gaming. In February 2014 Mt Pritchard was ranked number one across the State for gaming machine profit.

The 2014 result was impacted by trading losses from operations of the buffet and brasserie restaurants at Mt Pritchard.

The loss from these operations was $2.4M. These losses were generated by poor patronage, start up costs and an inability to generate a competitive cost of sales percentage. Our main concern was a drop in patronage, and for this reason we will be changing to new contractors on 1 October 2014.

The 2014 year was a triumph for cost control at the overhead level. Whilst not obvious from the comparatives with 2013, General and administration expenses were $34.7m compared to $33.6m last year. That’s an increase of 3.3% on 2013. This is a great result given we have had nine months with three additional clubs in the report.

The significant operating cash flows generated by Mt Pritchard has been supported by Mekong and Triglav clubs. Together these three clubs generated the lion’s share of EBITDARD of $25.7M. Harbord whilst being close to a breakeven at the EBITDARD line is the club with most potential with the second DA lodged for a retirement village and club redevelopment. Our other three clubs being Mounties Bowling, Manly Bowling and Club Italia had weaker EBITDARD numbers and will continue to be strongly supported.

short and long term objectives of the clubThe short and long term objectives of the Group are to continue to provide and promote sporting and social activities for members in accordance with our constitution. These objectives are achieved by continuing to maintain a level of operational profitability that supports the objectives, and developing a long term supporter base which will benefit from the Club’s success.

director’s report 2014

Sports ground expense $708,155

Sub clubs expense and grants $1,419,751

Bowling club green service and repairs $141,612

Donations $1,627,015

Children’s Christmas party $136,406

Senior citizens Christmas party $68,312

Carols by candlelight $24,655

Sports $1,073,609

$5,199,515

Category 3 Statewide Funding Pool $378,368

Total Community Support $5,577,883

Net Profit of Club $8,675,903

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significant events after reporting dateThe Harbord development’s design was completed and lodged with Warringah Council as part of the second DA on 4 August 2014. Also after balance date a DA was lodged with Fairfield Council for an additional restaurant at Mt Pritchard. A further DA was lodged for a multi level underground car park at Mt Pritchard also.

There have been no other significant events occurring after the balance date which may affect either the Club’s operations or results of those operations or the Club’s state of affairs.

Members liabilityFor each class of membership in the Club – the amount which a member of that class is liable to contribute if the Club is wound up, and the total amount that members of the Club are liable to contribute if the Club is wound up.

The liability of members is limited to $2 in the event that the Club is wound up.

The total amount that members of the Club are liable to contribute in the event that the Club is wound up is $213,698. (2013: $216,230).

directors’ benefitsDuring or since the end of the financial year no director of the Club has received or become entitled to receive a benefit, other than a benefit included in the aggregate amount of emoluments received or due and receivable by the directors as shown in the financial statements, by reason of a contract entered into by the Club with:

• a director; or • a firm of which the director is a member; or • an entity in which a director has a substantial

financial interest.

Indemnification of auditorsTo the extent by law, the Club has agreed to indemnify its auditor, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Earnst & Young during or since the financial year.

Auditor independenceTwo directors received a declaration of independence from the auditors. The decaration is included within this annual report.

Indemnification and insurance of directors and officersDuring the financial year the Club paid premiums in respect of a contract insuring all the directors and executives of Mt Pritchard & District Community Club Ltd against legal liability arising for any wrongful act committed, attempted or allegedly committed or attempted in the course of their duties as a director or executive of the Club. The policies prohibits disclosure of the premium paid.

Signed in accordance with a resolution of the directors.

Ingram, Kevin Director

Dean, John Joseph

Director

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Notes 2014 2013

Revenue 4(a) $120,581,119 $105,374,104

Costs attributable 4(b) ($72,138,998) ($61,879,921)

Gross profit $48,442,121 $43,494,183

Community support expenses 4(b) ($5,199,515) ($4,548,729)

General and administration expenses 4(b) ($34,720,307) ($33,594,892)

Profit before income tax $8,522,299 $5,350,562

Income tax (expense)/benefit 5 $153,604 $105,204

Profit for the year $8,675,903 $5,455,766

OTHER COMPREHENSIvE INCOME

Other comprehehsive income to be reclassified to profit or loss in subsequent periods:

Net other comprehehsive income to be reclassified to profit or loss in subsequent periods

-

-

Other comprehensive income not to be reclassified to profit or loss in subsequent periods:

Gain arising on acquisition of Club Italia

-

$2,745,290

Net other comprehensive income not to be reclassified to profit or loss in subsequent periods

- $2,745,290

Other comprehensive income for the year

-

$2,745,290

Total comprehensive income for the year attributable to the members of Mt Pritchard & District Community Club Ltd

$8,675,903

$8,201,056

statement of comprehensive income

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

our financial statements

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statement of financial position

Notes 2014 2013

ASSETSCurrent assetsCash 6 $6,870,487 $5,448,837Trade and other receivables 7 $811,661 $1,000,342Inventories 8 $558,006 $611,429Other financial assets 9 $13,830,798 $7,229,040Total current assets $22,070,952 $14,289,648

Non-current assetsTrade and other receivables 7 $1,205,743 $468,518Deferred tax assets 5 $162,316 $163,073Property, plant and equipment 11 $174,339,152 $174,842,091Intangible assets 12 $53,108,542 $53,108,542Total non-current assets $228,815,753 $228,582,224Total assets $250,886,705 $242,871,872

LIABILITIES AND EQuITYCurrent liabilitiesTrade and other payables 13 $7,655,990 $8,701,380Provisions 14 $40,000 $45,000Employee benefits liability 15 $4,523,514 $6,187,414Deferred revenue 12 $1,410,814 $1,310,956Total current liabilities $13,630,318 $16,244,750

Non-current liabilitiesProvisions 14 $1,166,517 $1,151,244Employee benefits liability 15 $2,633,657 $695,568Total non-current liabilities $3,800,174 $1,846,812Total liabilities $17,430,492 $18,091,562

Members’ equityRetained earnings 16 $217,814,694 $209,138,791Revaluation reserve 16 $12,896,229 $12,896,229Amalgamation reserve 16 $2,745,290 $2,745,290Total members’ equity $233,456,213 $224,780,310Total equity and liabilties $250,886,705 $242,871,872

The above statement of financial position should be read in conjunction with the accompanying notes.

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Revaluation Amalgamation Retained earnings reserve (note 16) reserve (note 16) Total equity

At 1 July 2013 $209,138,791 $12,896,229 $2,745,290 $224,780,310

Profit for the year $8,675,903 - - $8,675,903

Other comprehensive income - - - -

Total comprehensive income for the year $8,675,903 - - $8,675,903

At 30 June 2014 $217,814,694 $12,896,229 $2,745,290 $233,456,213

At 1 July 2012 $203,683,025 $12,896,229 - $216,579,254

Profit for the year $5,455,766 - - $5,455,766

Other comprehensive income - - $2,745,290 $2,745,290

Total comprehensive income for the year $5,455,766 - $2,745,290 $8,201,056

At 30 June 2013 $209,138,791 $12,896,229 $2,745,290 $224,780,310

The above statement of changes in equity should be read in conjunction with the accompanying notes.

Note 2014 2013

Operating activities

Receipts from customers $131,341,661 $113,604,777

Payments to suppliers and employees ($113,304,089) ($96,623,311)

Interest received $704,906 $1,846,904

Income tax received $154,361 $69,839

Net cash flows from operating activities $18,896,839 $18,898,209

Investing activities

Proceeds from sale of property, plant and equipment $179,455 $72,294

Payments for purchase of property, plant and equipment ($11,575,221) ($12,834,769)

Payments for purchase of other financial assets ($6,601,758) -

Proceeds from sale of other financial assets - $24,757,611

Payment for purchase of Club Mekong and Club Triglav, net of cash acquired $522,335 ($37,000,000)

Net cash flows used in investing activities ($17,475,189) ($25,004,864)

Financing activities

Repayment of finance lease principal (net) - -

Net cash flows used in financing activities - -

Net increase/(decrease) in cash and cash equivalents $1,421,650 ($6,106,655)

Cash and cash equivalents at 1 July $5,448,837 $11,555,492

Cash and cash equivalents at 30 June 6 $6,870,487 $5,448,837

The above statement of cash flows should be read in conjunction with the accompanying notes.

statement of changes in equity

Cash flow statement for the year ended 30 June 2014

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1 - Corporate information

Mt Pritchard & District Community Club Ltd (the “Club”) is a company limited by guarantee and a not-for-profit entity. The Constitution prohibits paying a dividend to members. The Club is incorporated and domiciled in Australia.

The primary objective of the Club is the provision of services for members; the directors have accordingly determined the Club is a not-for-profit entity for accounting purposes. In accordance with its Constitution the liability of members in the event of the Club being wound up would not exceed $2 per member.

The registered office of Mt Pritchard & District Community Club Ltd is located at:

101 Meadows Road Mt Pritchard NSW 2170

The Club employed 687 employees as at 30 June 2014 (2013: 709).

The principal activity of the Club during the year was the encouragement of sport and the provision of facilities for members and the community, by operating clubs licensed under the provisions of the Registered Clubs Act 1976 as amended.

The financial statements of the Club for the year ended 30 June 2014 were authorised for issue in accordance with a resolution of the directors on 27 August 2014.

The financial statements of the Club for the year ended 30 June 2013 was authorised for issue in accordance with a resolution of the directors on 27 August 2013.

2 - Summary of significant accounting policies

(a) Basis of preparation

The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards - Reduced Disclosure Requirements and and other authoritative pronouncements of the Australian Accounting Standards Board. Australian Accounting Standards contain requirements specific to not-for-profit entities, including standards AASB 116 Property, Plant and Equipment, AASB 138 Intangible Assets, AASB 136 Impairment of Assets and AASB 1004 Contributions. The financial report has been prepared on the basis of historical cost, except for certain assets which, as noted, are measured at fair value.

The financial report is presented in Australian dollars ($).

(b) Statement of compliance

The financial statements of the Club comply with Australian Accounting Standards – Reduced Disclosure Requirements (AASB – RDRs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB).

(c) Going concern

The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business.

At 30 June 2014, the Club’s total current assets exceeded total current liabilities by $8,440,634 (2013: total current liabilities exceeded total current assets of $1,955,102). Given that there are $10,000,000 of financing facilities available for use at 30 June 2014 (2013: $10,000,000), the Directors have concluded that the use of the going concern assumption in the preparation of this year’s financial report is appropriate.

(d) Changes in accounting policy, disclosures, standards and interpretations

(i) Changes in accounting policy and disclosures.

The accounting policies adopted are consistent with those of the previous financial year.

The Club has adopted the following new and amended Australian Accounting Standards and AASB Interpretations as of 1 July 2013:

AASB 13 Fair Value Measurement

AASB 13 establishes a single source of guidance under Australian Accounting Standards for all fair value measurements. AASB 13 does not change when an entity is required to use fair value, but rather provides guidance on how to measure fair value under Australian Accounting Standards. AASB 13 defines fair value as an exit price. As a result of the guidance in AASB 13, the Club re-assessed its policies for measuring fair values, in particular, its valuation inputs. AASB 13 also requires additional disclosures.

Application of AASB 13 has not materially impacted the fair value measurements of the Club. Additional disclosures where required, are provided in the individual notes relating to the financial assets whose fair values were determined.

AASB 101 Presentation of Items of Other Comprehensive Income – Amendments to AASB 101

The Club has adopted AASB 101 Presentation of Items of Other Comprehensive Income – Amendments to AASB 101 as of 1 July 2013. The amendments have no impact on the presentation of the financial statements, the Club’s financial position, or performance.

Several other amendments apply for the first time in 2013-14. However, they do not impact the annual financial statements of the Club.

notes to the financial statements for the year ended 30 June 2014

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(e) Business combinations

Club amalgamations are accounted for in accordance with AASB 3 Business Combinations using the purchase method of accounting. The purchase method of accounting involves assessing the fair value of the assets and liabilities acquired and the contingent liabilities assumed at the date of amalgamation; gains from amalgamation are recognised as a direct addition to amalgamation reserve within equity and any goodwill arising from amalgamation is brought into account as goodwill on amalgamation if such value is sustainable.

(f) Current versus non-current classification

The Club presents assets and liabilities in statement of financial position based on current/non-current classification. An asset is current when it is:

- Expected to be realised or intended to be sold or consumed in the normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current. A liability is current when:

- It is expected to be settled in the normal operating cycle

- It is held primarily for the purpose of trading

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The Club classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

(g) Cash

Cash in the statement of financial position comprises cash at banks and on hand.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash as defined above.

(h) Trade and other receivables

Trade receivables are recognised and carried at amortised cost less a provision for any uncollectible debts. An estimate for doubtful debts is made when collection of the full amount is not longer probable. Bad debts are written off as incurred.

(i) Inventories

Inventories are valued at the lower of cost and net realisable value.

Costs incurred in bringing each product to its present location and condition are accounted for as follows:

Raw materials – purchase cost on a first-in, first-out basis

Finished goods and work in progress – cost of direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity, but excluding borrowing costs

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(j) Financial assets

(i) Initial recognition

Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

(ii) Subsequent measurement

Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net changes in fair value in the statement of profit or loss and other comprehensive income.

(iii) Derecognition

A financial asset is primarily de-recognised (i.e. removed from the Club’s statement of financial position) when:

- The rights to receive cash flows from the asset have expired; or

- The Club has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Club has transferred substantially all the risks and rewards of the asset, or (b) the Club has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

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2014 2013

Buildings and improvements 5-30 years 5-30 years

Leasehold improvements 33 years 33 years

Other buildings 5-30 years 5-30 years

Plant and equipment 3-20 years 3-20 years

(iv) Impairment of financial assets

The Club assesses, at each reporting date, whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that has occurred since the initial recognition of the asset (an incurred ‘loss event’) has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.

(k) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the property, plant and equipment. When significant parts of property, plant and equipment are required to be replaced at intervals, the Club recognises such parts as individual assets with specific useful lives and depreciates them accordingly. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows:

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss and other comprehensive income when the asset is derecognised.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(l) Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the inception date. The arrangement is assessed for whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Club as a lessee

Operating lease payments are recognised as an operating expense in the statement of profit or loss and other comprehensive income on a straight-line basis over the lease term.

(m) Impairment of non-financial assets

At each reporting date, the Club assesses whether there is an indication that an asset may be impaired. Where an indicator of impairment exists or where annual impairment testing for an asset is required, the Club makes a formal estimate of the recoverable amount. An impairment loss is recognised for the amount by which the carrying amount of an asset exceeds recoverable amount, which is defined for not-for-profits entities as the higher of an asset’s fair value less costs to sell or depreciated replacement cost. For the purpose of assessing impairment, assets are grouped at the level for which there are separately identifiable cash flows. An impairment loss is recognised in the statement of comprehensive income.

(n) Goodwill

Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of the business combination over the Club’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities.

Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.

Impairment is determined by assessing the recoverable amount of the cash-generating unit, to which the goodwill relates. When the recoverable amount of the cash-generating unit is less than the carrying amount, an impairment loss is recognised. When goodwill forms part of a cash-generating unit and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained.

Impairment losses recognised for goodwill are not subsequently reversed.

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(o) Intangible assets

Electronic Gaming Machine (EGM) Entitlements are considered intangibles in accordance with AASB 138 Intangibles and recognised at fair value up to 30 June 2009. Fair value was determined by reference to market prices at which the entitlements had been traded. It is considered that an active market for these entitlements ceased to exist from 1 July 2009 and consequently they are carried at the most recent valuation.

The entitlements are considered to have an indefinite life and accordingly are not amortised.

The entitlements are tested for impairment on an annual basis or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

The Club conducts an annual internal review of asset values, which is used as a source of information to assess for any indicators of impairment. External factors, such as changes in Government regulations, technology and economic conditions, are also monitored to assess for indicators of impairment. If any indication of impairment exists, an estimate of the asset’s recoverable amount is calculated.

An impairment loss is recognised for the amount by which the entitlements’ carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Impairment losses are written off against the revaluation reserve (arose due to recording the entitlements at fair value up to 30 June 2009) to the extent the revaluation reserve is exhausted and against statement of profit or loss and other comprehensive income.

The gain or loss brought to account on sale of revalued entitlements will represent the difference between the proceeds on disposal and the revalued carrying amount.

Electronic Gaming Machine Entitlements acquired by way of club amalgamation are, in accordance with AASB 3 Business Combinations initially brought to account at the date of acquisition at the fair value at that date, and subsequently accounted for in accordance with the above policy.

(p) Trade and other payables

Trade and other payables are carried at cost and represent liabilities for goods and services provided to the Club prior to the end of the financial year that are unpaid and arise when the Club becomes obliged to make future payments in respect of the purchase of goods and services.

(q) Provisions and employee benefit liabilities

General

Provisions are recognised when the Club has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Club expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss and other comprehensive income net of any reimbursement.

Mortality payment

A provision for mortality payment is recognised for the expected costs associated with the members eligible to receive the mortality payment. The provision is based on the number of members entitled to receive the payment, discounted for the time value of money.

Wages, salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

Long service leave

The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

Employee benefits expenses and revenues arising in respect of the following categories:

• wages and salaries, non-monetary benefits, annual leave, long service leave, sick leave and other leave benefits;

and

• other types of employee benefits; are recognised against profits on a net basis in their respective categories. In respect of superannuation plans, any contributions made to the fund by the Club are recognised against profits when incurred.

44

(r) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Club and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty.

The Club assesses its revenue arrangements against specific criteria to determine if it is acting as principal or agent. The Club has concluded that it is acting as a principal in all of its revenue arrangements. The specific recognition criteria described below must also be met before revenue is recognised.

Club revenue

(i) Sale of goods

Revenue from the sale of goods relates to the sale of the Club’s products (including food and beverage) is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods.

(ii) Rendering of services

Revenue from rendering of services comprises revenue earned from the provision of gaming facilities together with other services to members and other patrons of the Club. Revenue is recognised when the service is provided.

(iii) Interest income

Interest income is recorded using the effective interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or receipts over the expected life of the financial instrument or a shorter period, where appropriate, to the net carrying amount of the financial asset or liability. Interest income is included in other income in the statement of profit or loss and other comprehensive income.

(iv) Commissions and member fees and subscriptions

Commissions and member fees and subscriptions are recognised as revenue over the period to which they relate.

(s) Taxes

The Income Tax Assessment Act 1997 (Amended) provides that under the concept of mutuality, Clubs are only liable for income tax on income derived from non-members and from outside entities. Current tax assets and liabilities for the current period are measured at the amount expected to be recovered from or paid to the taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred income tax liabilities are recognised for all taxable temporary differences except when the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

In determining tax balances, the Waratah formula applicable to registered licensed clubs is used.

Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except:

- When the GST incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable

- When receivables and payables are stated with the amount of GST included

The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

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

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(t) Comparatives

The financial report provides comparative information in respect of the previous period. Where necessary, comparative information has been reclassified and repositioned for consistency with current year disclosure.

(u) Other member use properties

The Club owns or holds an occupancy right to a number of holiday properties. The properties are held for the primary purpose of member use. The properties are accounted for on the same basis as the other property, plant and equipment as set out in note 2(k).

(v) Fair value measurement

The Club measures financial assets such as held for trading instruments (refer to Note 9) at fair value at each reporting date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Club.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Club uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

3 - Significant accounting estimates and assumptions

The preparation of the Club’s financial statements requires management to make judgements, estimates and

assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying

disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could

result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in

future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.

The Club based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Club. Such changes are reflected in the assumptions when they occur.

Impairment of non financial assets

The Club assesses impairment of all non-financial assets at each reporting date by evaluating conditions specific to the Club and to the particular asset that may lead to impairment. These include economic and political environments and business expectations. If an impairment trigger exists the recoverable amount of the asset is determined. Management do not consider that the triggers for impairment testing have been significant enough and as such these assets have not been tested for impairment in this financial period.

Long service leave provision

The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at balance date. In determining the present value of the liability, attrition rates and pay increases through promotion and inflation have been taken into account.

Taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded.

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The Club establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

Mortality provision

Provision is made for the anticipated costs with respect to the passing of qualifying members. In determining the present value of the liability, mortality estimates and the time value of money have been taken into account.

4 - Revenue and expenses

(a) Revenue 2014 2013

Poker machines $90,683,602 $78,685,947

Bars $8,498,673 $8,216,029

Fitness centers $6,371,585 $6,564,214

Membership $462,502 $673,728

Admissions and raffles $879,648 $824,046

Internet café and kids amusements $90,959 $91,136

Club Keno and tab commissions $534,259 $411,027

Catering commissions and booking fees $9,267,477 $5,772,886

Holiday cottages, lodges and apartments $619,686 $656,982

Member loyalty and gift shop $960,582 $732,257

Total revenue $118,368,973 $102,628,252

Other income Interest – financial

institutions $704,906 $1,846,904

Net gains on disposal of property, plant and equipment $179,455 $72,294

Other revenue $1,327,785 $826,654

Total other income $2,212,146 $2,745,852

$120,581,119 $105,374,104

(b) Expenses

Costs attributable 2014 2013

Poker machines $35,584,400 $31,238,581

Bars $9,352,259 $8,874,250

Fitness centers $6,124,622 $5,577,884

Membership $791,679 $852,647

Admissions and raffles $2,842,768 $2,511,464

Club Keno and Tab commissions $844,453 $870,075

Catering commissions and booking fees $11,154,239 $6,119,344

Resort expenses $868,666 $967,542

Member loyalty and gift shop $4,575,912 $4,868,134

Total costs attributable $72,138,998 $61,879,921

Included in costs attributable

Depreciation and amortisation of non-current assets $11,900,551 $10,657,700

Total depreciation and amortisation of non-current assets $11,900,551 $10,657,700

Community support expenses

Sports ground expense $708,155 $608,457

Sub clubs expense and grants $1,419,751 $1,534,016

Bowling club green service and repairs $141,612 $133,591

Donations $1,627,015 $1,190,567

Children’s Christmas party $136,406 $139,213

Senior citizens Christmas party $68,312 $64,345

Carols by candlelight $24,655 $26,133

Sports $1,073,609 $852,407

$5,199,515 $4,548,729

General and administration expenses

Club services $7,745,351 $6,756,519

Advertising and promotions $3,331,133 $2,542,988

Administration expenses and staff on-costs $11,296,264 $13,197,618

Repairs and maintenance $4,984,822 $4,582,841

Property costs $7,362,737 $6,514,926

$34,720,307 $33,594,892

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5 - Income tax

2014 2013 (a) Income tax benefit

The major components of income tax benefit are:

Statement of comprehensive income

Current income tax

Current income tax charge ($153,604) $130,515

($757) ($200,354)

Deferred income tax

Deferred income tax credit $757 ($35,365)

Income tax benefit reported in the statement of profit or loss and other comprehensive income ($153,604) ($105,204)

A reconciliation between tax benefit and the product of accounting profit before income tax multiplied by the Club’s statutory tax rate 30% (2013: 30%) is as follows:

Income tax expense prima facie $2,556,690 $1,605,169

Utilisation of prior year income tax losses ($757) ($200,354)

Amount exempted from tax ($2,709,537) ($1,510,019)

Income tax benefit attributable to ordinary activities (153,604) (105,204)

Deferred tax assets

Employee entitlements $162,316 $163,073

Net deferred tax asset $162,316 $163,073

Opening balance $163,073 $127,708

Recognised in the statement of profit or loss and other comprehensive income ($757) $35,365

Net deferred tax asset at the end of the year 162,316 163,073

6 - Cash and cash equivalents

2014 2013

Cash at bank and in hand $6,870,487 $5,448,837

$6,870,487 $5,448,837

Financing facilities available

At reporting date, the Club had negotiated total financing facilities of $10,000,000 (2013: $10,000,000). The $10,000,000 facility had been used. At balance date, an amount of $8,869,248 was unused.

7 - Trade and other receivables

Current 2014 2013

Other debtors and prepayments $811,661 $1,000,342

$811,661 $1,000,342

Non-current

Other debtors and prepayments $1,205,743 $468,518

$1,205,743 $468,518

8 - inventories

Catering and bar 2014 2013

At cost $457,124 $517,533

Merchandise

At cost $100,882 $93,896

Total inventory at the lower of cost and net realisable value $558,006 $611,429

9 - Other financial assets (current)

2014 2013

Held for Trading Investments $13,830,798 $7,229,040

$13,830,798 $7,229,040

Held for Trading Investments include floating rate notes in banks, hybrid securities and short-term deposits invested in either 11AM deposits or term deposits. Term deposits have a maturity of up to 365 days.

10 - Fair value measurement

The following table provides the fair value measurement of the Club’s financial assets.

Quantitative disclosures fair value measurement for financial assets as at 30 June 2014.

Assets measured at fair value Held for Trading Investments Date of valuation Total

- Floating rate notes in banks 30 June 2014 $3,322,457

- Hybrid securities 30 June 2014 $1,763,730

- Term deposits and at call 30 June 2014 $8,744,611

$13,830,798

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11 - Property, plant and equipment

Freehold land 2014 2013

Cost $37,238,419 $36,728,698

Net carrying amount $37,238,419 $36,728,698

Building and improvement

Cost $127,359,355 $127,147,029

Accumulated depreciation ($39,320,426) ($35,520,315)


Leasehold improvement

Cost $6,558,917 $6,558,917

Accumulated depreciation ($986,363) ($776,703)


Other buildings

Cost ($115,553) ($115,553)

Accumulated depreciation ($180,955) ($174,407)

Net carrying amount ($296,508) ($289,960)

Plant and equipment

Cost $98,920,622 $92,900,042



Member use properties

Cost $9,686,569 $9,626,859



Contruction in progress

Cost $8,563,133 $4,427,814


Total property, plant and equipment

Cost $288,211,462 $277,273,806



Reconciliation of carrying amounts at the beginning and end of the year

Freehold land

Balance at the beginning of the year 2014

Net carrying amount $36,728,560

Additions $509,859

Balance at the end of the year


Building and improvement



Additions $249,586

Depreciation charge for the year ($3,023,408)



Leasehold improvement

Balance at the beginning of the year


Depreciation charge for the year ($986,363)



Other buildings


Net carrying amount ($289,959)



Net carrying amount ($296,508)

Plant and equipment



Additions $6,620,747

Disposals ($600,167)




Member use properties


Additions $59,710




Contruction in progress






Total property, plant and equipment

Balance at the beginning of the year $174,804,694


Disposals ($600,167)




50

12 - Intangible assets and goodwill

Electronic gaming machine entitlement 2014 2013

Cost $39,298,193 $39,298,193


Goodwill

Cost (gross carrying amount) $13,810,349 $13,810,349


Total intangibles

Cost (gross carrying amount) $53,108,542 $53,108,542


(a) Reconciliation of carrying amount at beginning and end

of the year

Electronic gaming machine entitlement


Cost (gross carrying amount) $39,298,193

Carrying amount - opening $39,298,193

Carrying amount - closing $39,298,193

Goodwill



Carrying amount - opening $13,810,349

Carrying amount - closing $13,810,349

Total intangibles



Cost (gross carrying amount) - opening $53,108,542

Cost (gross carrying amount) - closing $53,108,542

(b) Description of the Club’s intangible assets

For the nature and description of the intangible assets please refer to the descriptions in note 2(n) and 2(o).

13 - Trade and other payables (current)

2014 2013

Trade creditors and accruals $7,655,990 $8,701,380

Total trade and other payables $7,655,990 $8,701,380

Deferred revenue $1,410,814 $1,310,956

Total deferred revenue $1,410,814 $1,310,956

Deferred revenue

The Club collects club membership and gym membership fees in advance. At any point in time the services for those membership fees have not yet been provided and has been recorded as deferred revenue.

14 - Provisions

Current 2014 2013

Mortality payments $40,000 $45,000

$40,000 $45,000

Non current Mortality payments $1,166,517 $1,151,244

$1,166,517 $1,151,244

Mortality payment

A provision for mortality payment is recognised for the expected costs associated with the members eligible to receive the mortality payment. The provision is based on the number of members entitled to receive the payment, discounted for the time value of money.

Movements in provision Mortality At 1 July 2012 (current and non-current) ($1,112,241)

Utilised/paid ($50,500)

Other adjustments ($33,503)

At 30 June 2013 (current and non-current) ($1,196,244)

Utilised/paid $53,173

Other adjustments ($63,446)

At 30 June 2014 (current and non-current) ($1,206,517)

15 - Employee benefits liability

Current 2014 2013

Employee benefits $4,523,514 $6,187,414

$4,523,514 $6,187,414

Non current

Employee benefits $2,633,657 $695,568

$2,633,657 $695,568

Employee benefits and superannuation

The aggregate employee benefit liability is comprised of:

Current provisions $4,523,514 $6,187,414

Non-current provisions $2,633,657 $695,568

$7,157,171 $6,882,982

All employees are entitled to benefits on retirement, disability or death. The defined contribution superannuation plan provides for payment of benefits accumulated. Certain employees contribute to a private fund at 5% of their wages and salaries; the Club generally contributes at the same rate. The Club also contributes to the defined contribution superannuation fund at the rate of 9.5% (2013: 9.25%); these contributions are legally enforceable.

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16 - Members’ equity

Retained earnings 2014 2013

Balance at beginning of the year $209,138,791 $203,683,025

Net profit attributable to members of Mt Pritchard & District Community Club Ltd $8,675,903 5,455,766

Balance at end of the year $217,814,694 $209,138,791

Revaluation reserve

Balance at beginning of the year $12,896,229 $12,896,229


Amalgamation reserve

Balance at beginning of the year $2,745,290 -

Amalgamation reserve - $2,745,290


$233,456,213 $224,780,310

Revaluation reserve

The revaluation reserve is used to record increases and decreases in the fair value of Electronic Gaming Machine Entitlements to the extent that they offset one another. There were no movements in their carrying values during the current financial year and the previous financial year.

Amalgamation reserve

The amalgamation reserve represents the gain arising on the acquisition in the current year.

17 - Commitments

(a) Commitments

Capital expenditure commitments

Estimated capital expenditure contracted for at balance date but not provided for 2014 2013

- Payable not later than one year $1,639,622 $117,308

(b) Contingencies

During the year, the Club had no contingent liabilities relating to membership entitlements.

In prior year the Club had a contingent liabilty relating to membership entitlements for Diamond and Double Diamond member benefits of $360,688.

18 - Related party disclosures

Key management personnel

Details referring to KMP, including remuneration paid, are included in note 19.

Related party balances

Mounties Group has an equity interest in an entity which at reporting date owes $992,977 (2013: $255,752). The terms and conditions are pursuant to the shareholders agreement.

19 - Director and executive disclosures

Key management personnel

Key management personnel, being those persons having authority and responsibility for planning, directing and

controlling the activities of the entity, include the directors and senior management.

Total compensation for key management personnel including directors and senior management for Mt Pritchard & District Community Club Ltd during the financial year are set out below:

2014 2013

Total remuneration $1,394,389 $1,392,923

The directors’ remuneration is of the nature of expense reimbursements, and is capped at the amounts approved each year by the members at the Annual General Meeting. The remuneration of directors is all of the nature of short term compensation; the directors are not entitled to post retirement benefits or other long term benefits.

Senior management are entitled to normal annual leave, vesting sick leave, and long service leave (subject to qualification) and superannuation benefits, they are not entitled to any other long term benefits.

Compensation of management

(a) Compensation policy

The performance of the Club depends on the quality of its directors and management staff. To prosper, the Club must be able to attract, motivate and retain highly skilled management staff. To this end, the Club embodies the following principles in its compensation framework:

• Provide competitive rewards to attract high calibre executives;

• Establish appropriate market measures of salaries and ensure that management salaries are maintained at market value.

52

(b) Remuneration committee

Four (4) members of the board of directors, together with the Employment Relations Manager and Chief Executive Officer form the Remuneration Committee, and maintain responsibility for reviewing compensation arrangements for senior management personnel.

The Remuneration Committee assess the appropriateness of the nature and amount of compensation of key management personnel on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum membership and Club benefit from the retention of a high quality executive team.

(c) Compensation structure

In accordance with best practice corporate governance, the Remuneration Committee use information obtained from an external consultant in the form of a written report detailing market levels of compensation for comparable executive roles. The report is then presented to a meeting of the Remuneration Committee who review executive remuneration levels, and make recommendations to the board.

In consideration of the job market, state of the economy, business location, type of organisation and business performance, it has been resolved that the Club will reward management personnel within the market range relevant to the position that they hold, and that the market will be checked every 2 years to ensure that this is maintained.

Senior management personnel are on employment contracts which specify all conditions of employment and remuneration details. These contracts are reviewed at determined intervals in line with performance, salary and market reviews.

20 - Events after reporting date

The Harbord development’s design was completed and lodged with Warringah Council as a Development Application (“DA”) 4 August 2014. Also after balance date a DA was lodged with Fairfield Council for a restaurant at Mt Pritchard. A further DA was lodged for a multi level underground car park at Mt Pritchard, after reporting date.

There have been no other significant events occurring after the reporting date which may affect either the Club’s operations or results of those operations or the Club’s state of affairs.

In accordance with a resolution of the directors of Mt Pritchard & District Community Club Ltd, we state that:

In the opinion of the directors:

(a) the financial statements and notes of the Club for the financial year ended 30 June 2014 are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Club’s financial position as at 30 June 2014 and of its performance for the year ended on that date

(ii) complying with Australian 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.

On behalf of the Board

Ingram, Kevin Director

Dean, John Joseph Director

Sydney, 27 August 2014

director’s declaration

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Auditor declaration

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(This statement does not form part of the financial report)

Dir

ect

cont

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ties

Gro

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litie

s P

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/ (

Loss

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Pro

fit /

( Lo

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mac

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s $4

1,75

2,01

7 $6

,990

,910

$3

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$2

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,188

$4

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95

$127

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($

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$5

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$37,

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$23,

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$53,

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fit /

( Lo

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. ($

160,

057)

($

27,1

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($68

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($43

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- ($

330,

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Pro

fit /

( Lo

ss) B

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s ($

149,

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($

32,1

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($13

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($37

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($15

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($40

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fit /

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$8,8

42

$6,3

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($43

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-

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($22

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($

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($16

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($51

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($96

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($28

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($3,

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($1,

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($

215,

341)

$2

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$47,

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$186

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($57

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853,

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-

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entr

e ($

266,

049)

-

$40

9,55

0

-

-

-

-

$143

,502

Pro

fit /

( Lo

ss) F

unct

ions

& e

nter

tain

men

t $

34,8

99

($35

6,42

6)

$90

,899

($

97,4

63)

($53

,711

) ($

9,32

0)

$71

,596

($

319,

526)

Pro

fit /

( Lo

ss) M

emb

ersh

ips

($42

5,57

5)

-

-

-

($

1)

-

-

($42

5,57

6)

Pro

fit /

( Lo

ss) E

xter

nal f

unct

ions

$

104

-

($15

4,64

0)

-

-

-

-

($15

4,53

6)

Sun

dry

Inco

me

Inte

rest

rec

eive

d

$702

,229

-

$2,

677

-

-

-

-

$7

04,9

06

Sp

orts

act

iviti

es

$41

,544

-

-

-

-

$

113,

225

$6

,066

$

160,

835

Com

mis

sion

s $

79,0

60

$3,2

01

$12,

550

$

4,37

3

$3,2

66

$965

$

392

$

103,

806

Oth

er

$973

,636

$

124,

653

$

157,

840

$3

8,29

1

$15

,341

$

6,25

0

$1,

208

$

1,31

7,21

8

Tota

l Dir

ect

Co

ntri

but

ion

$35

,811

,746

$6

,310

,265

$

3,14

9,35

9

$2,

094,

387

$

575,

966

$8

9,85

3

($15

2,48

4)

$47

,506

,054

Exp

ense

s M

ead

ow

s R

d

Mek

ong

E

vans

St

Trig

lav

Man

ly

Fair

field

It

alia

M

oun

ties

Gro

up

Mem

ber

& C

lub

Ser

vice

s

Op

erat

ions

, tra

nsp

ort

& s

ecur

ity

$4,7

72,6

96

$802

,573

$9

50,2

98

$467

,528

$2

49,0

32

$89,

702

$4

5,83

1

$7,3

77,6

60

Boo

king

Offi

ce

$325

,090

$1

17,9

67

$323

,080

$8

8,08

2

-

-

-

$

854,

220

Chi

ld c

are

$365

,464

-

-

-

-

-

-

$3

65,4

64

Ad

vert

isin

g &

pro

mot

ions

$2

,190

,434

$4

60,9

08

$473

,196

$1

58,7

41

$8,6

01

$14,

041

$2

0,99

5

$3,

326,

917

Gar

den

ing,

land

scap

ing

$340

,337

-

$74,

045

$8

,257

$6

3,49

0

$86,

373

$2

7,10

5

$599

,607

Rep

airs

& m

aint

enan

ce

$3,3

67,8

81

$171

,721

$6

68,2

14

$112

,693

$1

05,4

60

$89,

109

$1

73,8

09

$4,

688,

886

Tota

l $

11,3

61,9

02

$1,

553,

169

$

2,48

8,83

3

$83

5,30

2

$426

,584

$

279,

225

$

267,

740

$

17,2

12,7

55

Income & expenditure statement

58

Co

mm

unit

y E

xpen

ses

Sp

orts

are

a ex

pen

ses

$700

,168

-

-

-

-

$7

,987

-

$708

,155

Chi

ldre

ns C

hris

tmas

Par

ty

$13

6,40

8

-

-

-

-

-

-

$136

,408

Sen

ior

Citi

zens

Chr

istm

as p

arty

$

68,3

12

-

-

-

-

-

-

$68,

312

Car

ols

by

Can

dle

light

$

24,6

55

-

-

-

-

-

-

$24,

655

Com

mun

ity s

ervi

ces

($11

,784

) -

($49

,046

) -

-

-

-

($

60,8

29)

Com

mun

ity d

onat

ions

$

1,08

1,68

1

$25

0,68

3

$231

,666

$6

0,80

1

-

-

$2,1

85

$1,6

27,0

15

Sp

ortin

g S

ub C

lub

exp

ense

s $

1,96

2,15

4

-

$8

4,62

0

$55,

768

-

-

$9

3,80

8

$2,1

96,3

50

Sp

ortin

g S

ub C

lub

gra

nts

$297

,011

-

-

-

-

-

-

$2

97,0

11

Tota

l $

4,25

8,60

3

$25

0,68

3

$267

,241

$

116,

569

-

$7,

987

$

95,9

93

$4,

997,

076

Ad

min

istr

atio

n, F

inan

ce E

tc.

Man

agem

ent

– ad

min

istr

atio

n $

378,

794

$

398,

626

$

888,

080

$

27,5

82

$26

,167

$

20,3

70

$22

,325

$6

,288

,243

Dep

reci

atio

n b

uild

ing

& g

ener

al

$4,

758,

595

$

263,

394

$

955,

982

$

82,9

35

$80

,598

$

172,

838

$

144,

859

$

6,45

9,20

1

Hum

an R

esou

rces

-

$450

$

148,

323

$

2,19

1

$149

-

-

$8

42,4

27

Info

rmat

ion

tech

nolo

gy

-

$2

0,65

4

$34,

129

$

27,8

71

$9,

766

$

5,30

4

$8,

110

$

1,25

6,07

4

Util

ities

$3

49,8

09

$58

,950

$

514,

215

$

39,0

43

$58

,012

$

57,4

14

$50

,886

$

1,12

8,32

8

Sal

arie

s &

wag

es o

n -

cost

s -

$57

,214

$6

0,68

2

$76

,338

$8

0

$541

$1

,817

$6

46,0

49

Tota

l $5

,487

,198

$7

99,2

88

$2,6

01,4

11

$255

,960

$1

74,7

71

$256

,467

$2

27,9

97

$16,

620,

322

Tota

l Exp

ense

s $2

1,10

7,70

4

$2,6

03,1

39

$5,3

57,4

84

$1,2

07,8

31

$601

,355

$5

43,6

80

$591

,729

$3

8,83

0,15

3

Net

Pro

fit fo

r th

e p

erio

d

$14,

704,

042

$3

,707

,125

($

2,20

8,12

6)

$88

6,55

6

($25

,389

) ($

453,

827)

($

744,

213)

$8

,675

,901

Inte

rest

/ r

enta

l exp

ense

s $3

13

$163

,797

$5

1,43

1

$2,

021

$

8,00

0

$14

,992

-

$240

,554

Tax

exp

ense

($

153,

604)

-

-

-

-

-

-

($

153,

604)

Don

atio

ns e

xpen

ses

$4,2

73,2

93

$250

,683

$

316,

286

$

116,

569

-

$7,

987

$9

5,99

3

$5,

060,

811

Dep

reci

atio

n ex

pen

se

$8,5

80,8

25

$561

,507

$

1,68

7,06

5

$20

1,45

9

$14

2,97

2

$21

1,65

0

$15

2,71

3

$11

,900

,687

E.B

.I.T.

D.A

.R.D

. $

27,4

04,8

68

$4,

683,

112

($

153,

343)

$1

,206

,605

$1

25,5

84

($21

9,19

7)

($49

5,50

7)

$25,

724,

349

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“ with the support of our members, Mounties Group has again scored another strong balance sheet

“

schedule of lands owned by Mount pritchard & district Community Club ltd

CoRe pRopeRty

Mounties Site Certificate of Title

1 101 Meadows Road, Mount Pritchard Volume 8261 Folio 233 Volume 9060 Folio 131 Folio Identifier 1/204779 Vol 10577 Fol 99 Folio Identifier 4/524205 Folio Identifier 21/536004 Folio Identifier 12/521803

2 Property at end of Lena Street Mt Pritchard 2005/1090149 221568 Lot 200 DP 1015848 & Lot 1 DP 837474 Consolidation Lena Street (12, 14, 16, 18, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31 and Lot 1 Lena)

3 Property Young Street Mount Pritchard 101/ 1085221 Consolidated Property (Lot 13 Lot 14 & Lot 18 Young St) (formerly 29,21 & 33 Young St )

4 Closed Road Houston Place Mount Pritchard 101/1006165

5 1 Houston Place Mount Pritchard 7/231805





10 4 Kewin Avenue Mount Pritchard 2/231805


12 8 Kewin Avenue 22/231805




16 35 Young St Mount Pritchard 12/231805

17 254 Humphries Road Mount Pritchard 1/231805

18 113 Meadows Road Mount Pritchard 31/201418

19 Manly Bowling Club (Perpetual Lease) 2661/1752038

20 Fairfield Bowling Club (Perpetual Lease) Folio ID 385 / 752060

21 Fairfield Bowling Club (Perpetual Lease) Folio ID 387 / 752060

22 Club Italia Mounties Group Lot C in DP 421416 Lot 3 in DP805378 Lot 2 in DP805378

23 Mekong Mounties Group Lot 10 in SP23152 Lot 11 in SP23152

24 Triglav Mounties Group Lot 1 in DP1079685

62

schedule of lands owned by Mount pritchard & district Community Club ltd

non CoRe pRopeRty

1 17 Lena Street Mount Pritchard 7/203051


99 Meadows Road Mount Pritchard 10/515019


4 3 Leo Street Mount Pritchard 20/220028




8 10 Cherry Street Mount Pritchard 28/220028

9 1 Speed Street Mount Pritchard Auto Consol 14129-172

10 19 Young Street Mount Pritchard 13/235239



13 9 Lena Street Mount Pritchard 11/203051


14 80 Evans Street Freshwater Folio ID 100 / 1136132 Consolidated Lots

15 4a Lumsdaine Drive Freshwater 2/579837

16 Waves Site 23 Oliver Street Freshwater 1/517620

17 2 Harbord Street Sussex Inlet 116/521290

18 153/6-8 Stuart Street Tweed Heads 153/SP77177

19 191/6-8 Stuart Street Tweed Heads 191/SP 77177

20 Kooloora Site (NPWS Lease) Register Deed Book 752 / 4500

21 11 Young Street Mount Pritchard 22/220028


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Use yoUr voice to gUide the fUtUre of yoUr clUb

SuNDAY 19 OCTOBER TO SATuRDAY 25 OCTOBERTaking the time to vote reflects your pride in your club. When you vote,

you contribute to building a stronger club. When you vote, you are actively helping to guide the future priorities of your club and its community.

Cast your vote for the Mounties Group Board

When you vote, it counts.

be heard. See your club notice board for more information

NOTICE TO MEMBERS Notice is hereby given that the Annual General Meeting of

Mounties Group will be held on Sunday 26 October at 10.00am at Mounties and videoconferenced live to Harbord Diggers.

MountIes GRoup101 Meadows Road, Mt Pritchard NSW 2170

Locked Bag 1, Wetherill Park NSW 2164

Ph: (02) 9822 3555

Fax: (02) 9610 6832

e/ [email protected]

w/ www.mountiesgroup.com.au

MountIes101 Meadows Rd

Mount Pritchard 2170

Ph: (02) 9822 3555

Fax: (02) 9610 6832

Email: [email protected]

Web: www.mounties.com.au

Facebook: www.facebook.com/mountiesclub

MountIes BowlInG CluBCnr Ulverstone & Lawson Streets

Fairfield NSW 2165

Ph: (02) 9726 9692

Fax: (02) 9755 0800


Web: www.mountiesbowlingclub.com.au

hARBoRd dIGGeRsEvans Street

Freshwater NSW 2096

Ph: (02) 9938 1444

Fax: (02) 9938 4360


Web: www.harborddiggers.com.au

F: www.facebook.com/harborddiggers

CluB ItAlIACnr of Hollywood Drive & Wharf Road

Lansvale NSW 2166

Ph: (02) 97264511

Fax: (02) 9726 4855

web: www.clubitaliamounties.com.au

tRIGlAV80-84 Brisbane Road,

St Johns Park NSW 2176

Ph: (02) 9426 1000

Fax: (02) 9823 2522


Web: www.triglav.com.au

MAnly BowlInG CluBRaglan Street

Manly NSW 2095

Ph: (02) 9938 7657

Bowls: (02) 9977 3786

Fax: (02) 9977 3786


Web: www.manlybowlingclub.com.au

MekonG1st Floor, 117 John Street,

Cabramatta NSW 2166

Ph: (02) 9725 8500

Fax: (02) 9724 1798


Web: www.mekongmounties.com.au

Cast your vote for the Mounties Group Board

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mounties / mounties bowling club / harbord diggers / manly bowling club / club italia / mekong / triglav

2014 annual report · 2014 annual report for the year ended 30 june 2014 mounties / mounties...

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