2017 annual financial report · all nominations must include a brief resume of relevant experience,...

2017

Annual Financial

Report

Berowra RSL t/a Club Berowra

ACN 000 967 180

997 Pacific Highway

Berowra NSW 2081

Contents

Company Information

Notice of AGM

Nominations and Voting for Directors

2017 Annual General Meeting Minutes

Presidents Report

Treasurers Report

Full Financial Report

Directors Report

Auditors Independence Report

Statement of Financial Position

Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Directors Declaration

Independent Auditors Report

Company Information

Berowra RSL Club Limited President

(incorporated in NSW) Garth Lindsay

ABN 66 000 967 180

Acting Vice

President

Address Greg Fielder

997 Pacific Highway

Berowra NSW 2081 Treasurer

Andrew Robertson

Phone

(02) 9456 1844 Directors

S Atkins

Fax C Trewhella

(02) 9456 2028 S Boyce

M Summerhayes

Email M Bolan

[email protected]

Acting CEO

Website Renee Healey

www.berowrarsl.com.au

Bankers

Catering Bendigo Bank &

Berowra RSL Club Westpac

Auditors

Brigden & Partners Pty Ltd

VALE It is inevitable that during the course of the year that some of our Members and their families will suffer

the loss of a loved one.

To those Members who have suffered a bereavement – Our sincere condolences and deepest sympathy

mailto:[email protected]

http://www.berowrarsl.com.au/

Notice of Annual General Meeting

Notice is hereby given that the 22nd Annual General Meeting of the Berowra RSL Club Limited will be held at the

registered office of the Company, 997 Pacific Highway, Berowra on Sunday 20th

May 2018 at 11.00am.

Business of the Annual General Meeting

1. To confirm the minutes of the previous Annual General Meeting of the Berowra RSL Club Limited, held

on 23rd

April 2017

2. To receive and consider the report of the Board

3. To receive and consider the statement of financial position and statement of financial performance and

report of the auditor, Brigden & Partners Pty. Ltd. Chartered Accountants. To confirm the appointment of the

auditor

4. The declaration of names of Directors elected for the ensuing year 2018 – 2019

5. To deal with any business notices of motion of which due notice (21 days) has been given

6. To consider any general business

7. To consider and if thought fit, to adopt resolutions pertaining to honorariums and reasonable costs for

Directors expenses and insurance cover

Nominations for the following position for Board of Directors for 2018 – 2019

President

Vice President

Director

Director

Director

We hereby nominate…………………………………………Memb. No………………………..

For the position of…………………………………………….Dated…………………………….

Name………………………………Memb. No………………Signed……………………………

Name………………………………Memb. No………………Signed……………………………

I consent to the above nomination

Signed……………………………..Memb. No………………Dated……………….……………

Address………………………………………………………………………………………………

All nominations must include a brief resume of relevant experience, all nominees will be invited to meet with the

Board of Directors.

Nominations commence on 29th

April, 2018 and close at 6pm on 6th

May, 2018.

By order of the Board

Renee Healey

Acting Chief Executive Officer

Nominations and Voting for the election of Directors

2018 – 2019

NOMINATIONS

Nominations for positions on the Board of Directors for the 2018 – 2019 year

will commence on Sunday, 29th

April 2018 and conclude on Sunday, 6th

May 2018

at 6.00pm.

Nomination forms are available either from Reception or from the Administration

Office. Completed nomination forms may be deposited in the ballot box at

Reception or handed to the Acting Chief Executive Officer.

VOTING

The requirement to vote for the members who have been nominated for the

positions of Directors will be determined by the Returning Officer, after the

conclusion of nominations.

The nominations will be finalised on Sunday, 6th

May 2018 at 8.00pm. In the

event that there are more nominees for any position than required, the Returning

Officer will conduct a ballot draw to determine the order that nominees will

appear on the ballot paper.

Voting (if required) will be conducted by the Returning Officer at the

following times at the Club:

Day Times

Saturday, 12th

May 4.00pm to 6.00pm

Thursday, 17th


Friday, 18th


Members will be able to vote outside of these official hours during Club

trading hours as follows:

Sunday, 13th May 12.00 noon to 6.00pm

Monday, 14th May 12.00 noon to 7.00pm

Tuesday, 15th

May 12.00 noon to 8.00pm

Wednesday, 16th


Thursday, 17th


Friday, 18th


Voting commences on Saturday, 12th

May at 4.00pm

Voting concludes on Friday, 18th

May at 8.00pm

Minutes of the 21st Annual General Meeting 23rd

April 2017

Meeting opened at 11am

Attendance: As per registers The Chairman, Garth Lindsay called for one minute silence in memory of our departed members and also to reflect

after the loss of life member and friend John Shiach this week.

Apologies: C Batterham, S Hawkins, R Hawkins,N Denby and C Mulherin

Confirmation of Minutes of the 20th

Annual General Meeting held on 17th

April 2016:

Moved A Lindsay, seconded A Foody, that the Minutes of the 20th

Annual General Meeting be confirmed.

Carried.

Receive and consider the statement of financial position and statement of financial performance and report

of the auditor, Brigden & Partners Pty Ltd. Chartered Accountants:

Moved R Foster, seconded M Bolan, that the Statement of Financial Position and statement of Financial

Performance and report of the auditor be received.

Carried.

Confirm the appointment of the auditor, Brigden & Partners Pty Ltd.

Moved R Foster, seconded M Bolan

G Lindsay welcomed Representative from Brigden & Partners Pty Ltd, Mr Ben Perrot to the meeting.

President’s report presented by G Lindsay

Treasurer’s report presented by A Robertson

Election of Directors 2017 – 2018

The meeting was handed over to returning officer, John Andrews to advise of nominations and the elected Directors

The following nominees were elected unopposed:-

Vice President J Muirhead three (3) year term

Voting was conducted for Director 3 and 4 with the following results:-

Directors Simon Boyce (74), Carl Batterham (37), Neil Denby (10),

Gillian Reischl (37), Craig Trewhella (50),

Declaration of Directors;-

Director 3 – Simon Boyce – three (3) year term

Director 4 – Craig Trewhella – three (3) year term

Thank you to Malcolm Schofield for his assistance

with the voting process.

Returning Officer Requests permission to destroy ballot papers

Moved R Foster, seconded A Lindsay carried.

G Lindsay resumes role as Chairperson.

Agenda resumed.

Welcome Craig Trewhella to the board, thank you to outgoing director Carl Batterham for his service over the past

11 years. Also thanking all nominees for offering their service to the Club.

The consideration for approval of the following resolutions:

1. That the following Honorariums be available for the 2015 – 2016 Board Year:

President $2500

Vice President $ 750

Treasurer $1125

Directors (6) $1800

$6175

2. The reasonable cost of a meal and a beverage for each director immediately before or immediately after

a Board, Special or Committee Meeting on the day of the meeting.

3. Payment of the Premium for Directors and Office Bearers Insurance Cover.

4. The Club shall be entitled to budget, allocate and disburse such funds as may be considered reasonable expenditure

of Directors for professional development, including but not limited to, industry related meetings, organised study

tours, seminars, trade display, etc. as may be determined by the Board. All expenditure must be supported by

documentary evidence.

Moved A Foody, seconded R Foster that the aforementioned resolution is approved. Carried.

General Business:

G Fiedler: Urgency regarding nomination for Life Membership and Chair to be handed to Vice President John

Muirhead

Board & members agreed.

G Fiedler :

Motion: That Mr Garth Lindsay be granted Life Membership for his services to Berowra RSL Club, seconded A

Robertson.

Greg Fiedler spoke to the motion citing Garth’s commitment to the Club through his time and responsibility of

holding the role of President.

All in favour. Mr Garth Lindsay is declared Life Member of the Club.

Garth thanked the Board and members for the honour.

N Fisher: Congratulations for effort it has been a great achievement. Thank you to staff that drive the bus for their

assistance however would like a handrail for the bus to help with access.

J Andrew: Thank you to Board and club for their continued support of the social golf club especially with

President’s Day.

M Bolan: concerned about lack of attendance from the Sub Branch. D Ross explained that usual attendees were

unfortunately away or unable to attend due to illness.

D Ross: Informed all that he will be shaving off his beard on ANZAC Day at the Club to raise money for returning

servicemen with PTSD.

Meeting closed 11.30am

President’s Report

On behalf of the Board, I submit to the members, the 2017 Annual Report for Berowra RSL Club Ltd.

I advise that the 2017 result after tax is a profit of $55,603. Despite not achieving our budgeted profit, we

are excited by the opportunities, and driven to develop robust plans and pathways.

We have continued to support the community in funding and support. This includes sponsorship of local

sporting codes, being Berowra Cricket Club, Berowra Wallabies Rugby League and Berowra Netball

Club. Our funding provided essential support to these organisations and assisted them in providing

quality programs and facilities.

Our membership has grown by 9% with 1968 members at 31st December 2017 compared to 1832 at 31

st

December 2016. This is a good result and we are very proud of our growth in membership to date.

I would like to congratulate our staff who are working hard, amongst change, to deliver the customer

service experience that we aspire to.

We acknowledge the hard work of Nicole Rothwell and thank her for her efforts. Thank you to Renee

Healey, appointed Acting CEO in November 2017 for her support as the year wound up. With Renee’s

assistance, the Board is excited to deliver some real venue improvements for our members.

I extend my thanks to my fellow Board members for their support, dedication and hard work throughout

this year. The Board will continue to ensure statutory compliance and provide dynamic strategic

direction, with vision, that will deliver our members, our people and ultimately our community, a club of

the future.

I look forward to the coming year at our club, Berowra RSL Club.

Garth Lindsay,

President.

Treasurer’s report

Thanks for the opportunity to present the 2017 Audited financial results on behalf of the Club’s board

for Berowra RSL club.

There are three key indicators of financial success that we use:

1) Revenue growth – which tell us “are we growing” and a measure of whether we are providing

value to our members and the community.

2) Profitability – it is one thing to grow, although to be here in the long run we must growth in a

profitable way.

3) Operating cash flow – Cash is the life blood of this business and ensures that we can pay our

bills and continue to make the necessary investments to secure our future.

2017 financial results

1) Revenues

Our revenues for FY 2017 were $2.8 million representing a growth of 8 % from 2016 (last year we grew

6%) so we are accelerating this growth. Where CPI sits around 3% this is a very solid result and

demonstrates the increasing value that we are offering members (new and existing). We are very

proud of this and thank you for your continued support.

2) Profitability

Clubs NSW encourages all Clubs to use a measure called EBITDARD which is essentially profitability

with ‘non-operational items like interest, tax, rent, depreciation and donations removed; it is designed to

get to the ‘underlying truth’ of the clubs operational performance. We achieved a return about 15% -

which is about 3% lower that we would have liked but still a very good result.

That areas that we are focused on to improve our profitability are

1) Gaming machine performance was about 8% less what we expected (this is also impacted by

payouts – so a mixed blessing) ~37k

2) An increased tax on our gaming revenues (as we reached certain hurdles) ~35k

3) Sales of our Promotions and the resulting Bar sales were less than we expected – as a result we

have a much more aggressive events schedule in 2018 that is already showing large improvements. ~52k

4) Bistro GP and Expenses ~ $24k

3) Cash balances

We are pleased to share that we have continued to improve our cash balances by some 24% with a

closing cash balance of $303k up from $244k at the beginning of the year

Whilst these results are solid, we see a lot more opportunity and have/ are in the process of implementing

several initiatives to increase growth (especially in Promotions, Bar and Bistro), increased productivity

through better use of systems (rostering, members etc) and further maintain expenses relative to revenue.

Long term property

We continue to explore options to secure some premises on a much longer term than the current lease we

have as well as build the financial reserves to support that.

In conclusion I would like to acknowledge you our members for your role in making this the great Club

that it is, our Management team and the staff for making all this a reality and the Board for their

stewardship and commitment.

If you have any specific questions as they relate to the financials please address them in writing to myself

seven days prior to the AGM and this will ensure that I can prepare an appropriate response.

Regards

Andrew Robertson – Treasurer

BEROWRA RSL CLUB LIMITED

ACN 000 967 180

ANNUAL FINANCIAL REPORT

FOR YEAR ENDED 31 DECEMBER 2017

TABLE OF CONTENTS

Full Financial Report

Comprising:

Directors’ Report

Auditors’ Independence Declaration

Statement of Financial Position

Statement of Profit and Other Comprehensive Income

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Directors’ Declaration

Independent Auditors Report


ACN 000 967 180

DIRECTORS’ REPORT

Your directors have pleasure in submitting to members their annual report on the Club covering

year ended 31 December 2017.

Operations

The principal activity of the Club during the financial year was to provide the facilities of a

licensed club to members and visitors. There were no significant changes to this activity during

the financial year.

The Club’s short term objectives are to:

Continue improving the financial viability of the Club; and

Continue the improvement of facilities for members and visitors.

The Club’s long term objectives are to:

Maintain financial stability and sustainability as a business; and

Provide quality facilities and continue to improve those facilities.

The short term and long term objectives will be achieved by:

Strict control over the Club’s finances and sound economic operation of the Club as a

business.

The maintenance and development of quality management personnel.

Ensuring the Club meets the required standards of governance and professional

accountability.

Maintaining consistent high standards of service to customers.

The Club measures its financial performance by benchmarking its key performance indicators

(KPIs) against those of other similar clubs. The KPI’s include but are not limited to:

EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) to Revenue.

Wages to Revenue

Gross Profit

Entertainment Costs


ACN 000 967 180

DIRECTORS’ REPORT (cont)

Directors’ Particulars

Name

Details

Interest in

Contracts

Garth LINDSAY

President

Greenkeeper

Appointed June 2007

Nil

Greg FIEDLER

Vice President

Finance Manager

Appointed August 2007

Nil

Andrew ROBERTSON

Treasurer

Principal

Appointed: April 2015

Nil

Simon BOYCE

Director

Small Business Owner


Nil

Matthew SUMMERHAYES

Director

National Parks Ranger


Nil

Stephen ATKINS

Director

Payroll Officer


Nil

Craig TREWHELLA

Director

Builder


Nil

Murray BOLAN

Director

Small Business Owner

Appointed: March 2018

Nil

Carl BATTERHAM

Director

Printer

Appointed: December 2006

Resigned: April 2017

Nil

John MUIRHEAD

Vice President;

Co-ordinator Infrastructure Services


Resigned: February 2018

Nil

Mark MUIRHEAD

Director

Marketing Manager

Appointed: March 2012

Resigned: March 2018

Nil


ACN 000 967 180

DIRECTORS’ REPORT (cont)

Directors’ Meetings

The number of Directors and Board meetings attended by directors who held office during the

year are as follows:

Directors

Eligible

Board Meetings

Meetings

Attended

Greg Fiedler 11 10

Carl Batterham 3 2

Garth Lindsay 8 6

John Muirhead 11 10

Simon Boyce 11 11

Matthew Summerhayes 11 10

Mark Muirhead 11 6

Stephen Atkins 11 10

Andrew Robertson 11 10

Craig Trewhella 8 8

Membership Liability

The Club is incorporated under the Corporations Act 2001 and is a company limited by

guarantee. If the Club is wound up, the Constitution states that each member is required to

contribute $5.00 towards meeting any outstanding obligations of the entity. Further details of this

liability can be found at Note 18 of the financial statements.

Auditors’ Independence Declaration

The lead auditor’s independence declaration for the year ended 31 December 2017 has been

received and is included with the financial report.

Made and signed in accordance with a resolution of the Board of Directors this 23rd day of April

2018.

………………………………….……………

Garth Lindsay - Director

………………………………..………………

Andrew Robertson – Director/ Treasurer


ACN 000 967 180

AUDITOR’S INDEPENDENCE DECLARATION

This declaration is made under Section 307C of the Corporations Act 2001 to the Directors of

Berowra RSL Club Limited.

As lead auditor of Berowra RSL Club Limited, I declare that to the best of my knowledge and

belief, during the year ended 31 December 2017 there has been:

(a) no contraventions of the auditor independence requirements as set out in the Corporations

Act 2001 in relation to the audit; and

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

BRIGDEN & PARTNERS PTY LIMITED

Chartered Accountants

………………………………………………..

David Smith - Director

Level 3, 20 George Street HORNSBY NSW 2077

23 April 2018


ACN 000 967 180

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2017

Notes 2017 2016

CURRENT ASSETS

Cash and cash equivalents 3 303,430 243,922

Inventories 4 55,212 49,058

Financial assets 5 60,000 60,000

Other current assets 6 29,479 20,141

TOTAL CURRENT ASSETS $448,121 $373,121

NON-CURRENT ASSETS

Property, plant and equipment 7 919,215 873,062

TOTAL NON-CURRENT ASSETS $919,215 $873,062

TOTAL ASSETS $1,367,336 $1,246,183

CURRENT LIABILITIES

Payables 8 311,131 206,596

Financial liabilities 9 49,205 49,205

Provisions 10 53,499 48,658

Other current liabilities 11 9,915 11,408

TOTAL CURRENT LIABILITIES $423,750 $315,867

NON-CURRENT LIABILITIES

Financial liabilities 9 61,749 103,193

Provisions 10 12,346 19,139

Other non-current liabilities 11 13,830 7,926

TOTAL NON-CURRENT LIABILITIES $87,925 $130,258

TOTAL LIABILITIES $511,675 $446,125

NET ASSETS $855,661 $800,058

MEMBERS FUNDS

Accumulated Funds 759,865 704,262

Reserves 95,796 95,796

TOTAL MEMBERS FUNDS $855,661 $800,058

The accompanying notes form part of these financial statements.


ACN 000 967 180

STATEMENT OF PROFIT AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2017

Notes 2017 2016

Revenue:

Sale of goods – food and beverages 1,250,890 1,220,790

Gaming and provision of other services 1,480,787 1,280,990

Interest received – other persons 2,202 4,417

Membership subscriptions 19,304 18,314

Profit (loss) on sale of fixed assets (3,034) 26,072

Other income 30,967 32,305

Total Revenue and Other Income $2,781,116 $2,582,888

Expenses:

Cost of goods sold 512,470 501,936

Depreciation and amortisation 2 203,613 149,421

Employee benefit expenses 1,048,158 993,713

Director honorarium - 2,500

Finance costs 2 7,760 10,185

Marketing and entertainment 270,253 255,067

Poker machine gaming tax 132,857 56,075

Property and maintenance 317,065 275,655

Other expenses 233,337 195,167

$2,725,513 $2,439,719

Net Profit before Income Tax 2 55,603 143,169

Income tax expense (benefit) - -

Net Profit for the Year 2 $55,603 $143,169

Total comprehensive income attributable to members of

the entity $55,603 $143,169

STATEMENT OF CHANGES IN EQUITY


Accumulated Asset

Funds Realisation TOTAL

Balance 31 December 2015 561,093 95,796 656,889

Net profit/ (loss) attributable to members 143,169 - 143,169

Balance 31 December 2016 $704,262 $95,796 $800,058

Net profit/ (loss) attributable to members 55,603 - 55,603

Balance 31 December 2017 $759,865 $95,796 $855,661



ACN 000 967 180

STATEMENT OF CASH FLOWS


Notes 2017 2016

Cash Flows From Operations

Receipts from members and guests 3,009,857 2,774,378

Payments to suppliers and employees (2,695,465) (2,441,511)

Interest received 2,202 4,417

Financing costs paid (7,760) (10,185)

Net Operating Cash Flows 13 $308,843 $327,099

Cash Flows From Investments

Proceeds from sale of plant & equipment 10,855 31,220

Payments for property, plant & equipment (218,745) (404,389)

Net Investment Cash Flows $(207,890) $(373,167)

Cash Flows From Financing

Repayment of borrowings (41,445) (39,020)

Net Financing Cash Flows $(41,445) $(39,020)

Net Surplus/ (Deficit) in Cash Flows 59,508 (85,088)

Cash at the Beginning of the Year 243,922 329,101

Cash at end of Year 3 $303,430 $243,922



ACN 000 967 180

NOTES TO THE FINANCIAL STATEMENTS


The financial report is for Berowra RSL Club Ltd (“the Company/Club”) as an individual entity,

for the year ended 31 December 2017, and was authroised for issue in accordance with a

resolution of the directors on 23 April 2018

The Club is a company limited by guarantee, incorporated and domiciled in Australia. The Club

is a not-for-profit entity for financial reporting purposes under the Australian Accounting

Standards

The Club’s registered office and business address is 997 Pacific Highway Berowra NSW 2081

1. STATEMENT OF ACCOUNTING POLICIES

Basis of Preparation

The financial statements are a general purpose financial report and have been prepared in

accordance with Australian Accounting Standards – Reduced Disclosure Requirements

(RDR) (including Australian Accounting Interpretations) and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has

concluded would result in financial statements containing relevant and reliable

information about transactions, events and conditions. Material accounting policies

adopted in the preparation of these financial statements are presented below and have

been consistently applied unless otherwise stated.

The financial statements, except for the cash flow information, have been prepared on an

accruals basis and are based on historical costs, modified, where applicable by the

measurement at fair value of selected non-current assets, financial assets and financial

liabilities. The amounts presented in the financial statements have been rounded to the

nearest dollar.

The financial report has been prepared on a going concern basis, which contemplates

continuity of normal business activities, and the realisation of assets and settlement of

liabilities in the ordinary course of business. The Directors considered the profitability,

liquidity and solvency of the Club and have concluded that the use of the going concern

assumption in the preparation of the financial report is appropriate.

Accounting Policies

(a) Revenue

Revenue is recognised in the accounts from the sale of goods and services upon

delivery of the goods and services. Revenue is measured based on the cash or cash

equivalent consideration received, after deducting discounts.

Interest revenue is recognised on a cash basis in the period it is received.

(b) Goods & Service Tax (GST)

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

where the amount of GST incurred is not recoverable from the Australian Taxation

Office. In these circumstances the GST is recognised as part of the cost of

acquisition of the asset or as part of an item of expense. Receivables and payables

in the statement of financial position are shown inclusive of GST.


ACN 000 967 180



Cash flows are presented in the statement of cash flows on a gross basis, except

for the GST component of investing and financing activities, which are disclosed

as operating cash flows.

(c) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks,

other short-term highly liquid investments with original maturities of three months

or less, and bank overdrafts. Bank overdrafts are shown within short-term

borrowings in current liabilities on the statement of financial position.

(d) Inventories

Inventories are measured at the lower of cost or net realisable value.

(e) Property, Plant and Equipment, and Depreciation

Each class of property, plant and equipment is carried at cost or fair values as

indicated, less, where applicable, accumulated depreciation and impairment losses.

Plant and equipment are measured on the cost basis less accumulated depreciation

and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to

ensure it is not in excess of the recoverable amount from these assets. The

recoverable amount is assessed on the basis of the expected net cash flows that

will be received from the assets employment and subsequent disposal. The

expected net cash flows have been discounted to their present values in

determining recoverable amounts.

Depreciation The depreciable amount of all fixed assets including buildings and

capitalised lease assets, but excluding freehold land, is depreciated on a straight-

line basis over the asset's useful life to the entity commencing from the time the

asset is held ready for use

Depreciation rates:

Leasehold improvements 10 - 15%

Plant & Equipment 10 - 25%

Poker machines 20 - 25%

(f) Financial Instruments

Financial instruments are accounted for in accordance with AASB139: Financial

Instruments – Measurement and Recognition.

Broadly, financial assets and financial liabilities are recognised when the entity

becomes a party to the contractual provisions to the instrument. For financial

assets, this is equivalent to the date that the Company commits itself to either

purchase or sell the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transactions costs

except where the instrument is classified “at fair value through profit or loss” in

which case transaction costs are expensed to profit or loss immediately.


ACN 000 967 180



(g) Impairment of Assets

At each reporting date the Club reviews the carrying values of its tangible and

intangible assets to determine whether there is any indication that those assets

have been impaired. If such indication exists, then the recoverable amount of the

asset is compared to the carrying value, and any excess in carrying value over the

recoverable amount is expensed to the statement of comprehensive income.

Where the future economic benefits of the asset are not primarily dependent upon

on the asset's ability to generate net cash inflows and when the entity would, if

deprived of the asset, replace its remaining future economic benefits, value in use

is determined as the depreciated replacement cost of an asset.

(h) Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the

reporting period for goods and services received by the company during the

reporting period, which remain unpaid. The balance is recognised as a current

liability with the amounts normally paid within 30 days of recognition of the

liability.

(i) Employees’ Benefits

Provision has been made for long service leave and annual leave in accordance

with statutory requirements, on the basis of pro rata entitlement on the wage and

salary levels, including salary on-costs, of employees at reporting date.

The long service leave provision applies only to those employees who have

completed at least five years’ service with the Club, and is shown as non-current

liabilities.

Employee benefits that are expected to be settled within one year have been

measured at the amounts expected to be paid when the liability is settled.

Employee benefits that are payable later than one year have been calculated using

a nominal value basis rather than the standards based present value of future cash

flows method, however the result under each of these methods is not materially

different.

Superannuation contributions are made to an employee superannuation fund and

charged as expenses in the period in which they are incurred.

(j) Income Tax

No income tax has been provided in the accounts as the Club did not derive any

taxable income.

Under present income tax legislation and in accordance with mutuality principles,

net income derived from members is not assessable for income tax purposes.

Deferred tax assets arising from tax losses are brought to account only when it is

probable that taxable income will be available in the future to absorb these losses.


ACN 000 967 180



(k) Current versus non-current classification

The Club presents assets and liabilities in the statement of financial position based

on current/non-current classification.

An asset is current when it is: expected to be realised, sold or consumed in the

normal operating cycle; held for the purpose of trading; expected to be realised

within twelve months after reporting date; or cash or cash equivalent. All other

assets are classified as non-current.

A liability is current when it is expected to be settled in the normal operating

cycle; held primarily for trading; due to be settled within twelve months after the

reporting date; or there is no unconditional right to defer settlement of the liability

for at least twelve months after reporting date. All other liabilities are classified as

non-current.

(l) Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted

to conform with changes in presentation for the current financial year. When an

entity applies an accounting policy retrospectively, makes a retrospective

restatement or reclassifies items in its financial statements, a statement of financial

position as at the beginning of the earliest comparative period must be disclosed.

(m) Critical Accounting Estimates and Judgements

The directors evaluate estimates and judgments incorporated into the financial

statements based on historical knowledge and best available current information.

Estimates assume a reasonable expectation of future events and are based on

current trends and economic data, obtained both externally and within the

company. The Directors review these key estimates, assumptions and judgements

annually.

The key estimates used are:

(1) Useful lives of fixed assets are estimated in order to calculate depreciation

rates.

(2) Future cash flows are estimated in order to calculate net present values for

impairment calculations and for long-term liabilities.

(n) Changes in accounting policies, disclosures, standards and interpretations

During the current year the company adopted all of the new and revised Australian

Accounting Standards and Interpretations applicable to its operations which

became mandatory.

The new or amended Australian Accounting Standards that apply for the first time

in this financial year do not have a significant impact of the disclosures in the

Club’s financial statements or the measurement of the Club’s revenue, expenses,

assets and liabilities.


ACN 000 967 180



2017 2016

2. PROFIT FOR THE YEAR

The Net Profit for the year has been determined after

charging for:

Finance costs

- Interest paid 7,760 10,184

$7,760 $10,184

Depreciation and amortisation:

- Leasehold Improvements 45,556 34,416

- Plant and equipment 158,057 115,005

$203,613 $149,421

Employee leave provisions 9,258 8,457

$9,258 $8,457

Operating lease expense 115,234 107,915

$115,234 $107,915

Superannuation - defined contributions plan 85,241 78,625

$85,241 $78,625

3. CASH AND CASH EQUIVALENTS

Cash at bank 244,838 186,430

Cash on hand 58,592 57,492

$303,430 $243,922

4. INVENTORIES

Bar Stock 43,888 39,310

Bistro Stock 11,324 9,748

Stock on hand at cost $55,212 $49,058

5. FINANCIAL ASSETS

Current -

Bank fixed interest deposits (a) $60,000 $60,000

(a) This term deposit has been used to secure a bank

guarantee required by the premises lease agreement

6. OTHER CURRENT ASSETS

Prepayments 27,090 7,067

Sundry debtors 2,389 13,074

$29,479 $20,141


ACN 000 967 180



2017 2016

7. PLANT AND EQUIPMENT

Furniture, fittings, plant and equipment - at cost 446,598 537,285

Provision for depreciation (218,331) (350,537)

228,267 186,748

Motor vehicles – at cost 22,727 22,727


- -

Leasehold Improvements – at cost 421,647 386,100


286,245 276,865

Poker machines – at cost 893,641 833,861


404,703 409,449

Total Plant and Equipment $919,215 $873,062

Reconciliation of Carrying Values

Furniture, fittings, plant and equipment

Carrying value at start of year 186,748 131,934

Additions 111,353 104,312

Disposals (10,505) (3,643)

Depreciation (59,329) (45,855)

Carrying value at year end 228,267 186,748

Motor Vehicles

Carrying value at start of year - -

Depreciation - -

Carrying value at year end - -

Leasehold Improvements


Additions 57,496 117,195

Disposals (2,560) -



Poker Machines


Additions 94,489 182,880

Disposals (821) (1,504)



$919,215 $873,062


ACN 000 967 180


FOR THE YEAR ENDED 31 DECEMBER 2017 2017 2016

8. TRADE AND OTHER PAYABLES - CURRENT

Trade creditors and accruals 217,137 151,216

Poker Machine purchases 44,910 -

Employees’ leave entitlements 49,084 55,380

$311,131 $206,596

9. FINANCIAL LIABILITIES

Current -

Secured Loan 49,205 49,205

$49,205 $49,205

Non-Current -

Secured Loan 61,749 103,193

$61,749 $103,664

Secured Loan – is a commercial loan agreement with the

Westpac Bank. It is secured by first registered goods security

over poker machine and other gaming equipment that was

acquired in May 2015, and a first registered general security

over all existing and future assets and undertakings of the Club.

The carrying value of the secured assets is: $128,793

The weighted average interest rate on the loan is: 6.00%

10. PROVISIONS

Long term employee leave entitlements -

Opening balance 67,797 $59,340

Additional provisions raised during year 9,258 8,457

Amounts used (11,210) -

Closing balance at year end $65,845 $67,797

Represented by:-

- Current 53,499 48,658

- Non-Current 12,346 19,139

$65,845 $67,797

11. OTHER LIABILITIES

Current -

Income received in advance $9,915 $11,408

Non-Current -

Income received in advance $13,830 $7,926


ACN 000 967 180



2017 2016

12. CAPITAL AND LEASING COMMITMENTS

(a) Capital Expenditure Commitments

There are no material capital expenditure commitments.

(b) Finance Leasing and Hire Purchase Commitments

There are no finance lease or hire purchase commitments

(c) Operating Lease (Rental) Commitments

Non-cancellable operating leases contracted for, but not

capitalised in the financial statements:

Property Plant & Equipment Payable

- within one year 4,217 4,217

- between one and five years 704 4,921

Leasehold Premises Rent Payable

- within one year 115,457 110,016

- between one and five years 682,758 505,393

- between five and ten years 154,521 447,324

$952,737 $1,071,871

(d) Other Contractual Liabilities

Programmed Maintenance

- within one year 8,508 8,508

- between one and five years 20,561 29,069

Total Commitment $29,061 $37,577

13. CASH FLOW INFORMATION

(a) Reconciliation of Operating Profit After Tax to

Net Operating Cash Flows

Operating profit after tax 55,603 143,169

Non-cash (income) and expenses -

Depreciation and amortisation 203,613 149,421

(Profit)/Loss on disposal assets 3,034 (26,072)

Changes in assets and liabilities -

Decrease/ (increase) in inventories (6,154) 1,306

Decrease/ (increase) in other assets (9,338) (9,631)

(Decrease)/ increase in payables 59,626 61,969

(Decrease)/ Increase in other liabilities 4,411 (1,520)

(Decrease)/ Increase in provisions (1,952) 8,457

Net Operating Cash Flows $308,843 $327,099

14. KEY MANAGEMENT PERSONNEL

Total compensation of key management personnel $268,602 $189,209


ACN 000 967 180



15. RELATED PARTY TRANSACTIONS Transactions between related parties are on normal commercial terms and conditions no more

favourable than those available to other persons unless otherwise stated, or approved at an

Annual General Meeting.

Apart for the detail disclosed in this note, no related party has entered into a material contract

with the club since the end of the previous financial year, and no such material contracts existed

at year end. There were no amounts receivable from or payable to related parties at the current

or previous reporting date.

16. EVENTS SUBSEQUENT TO BALANCE DATE There are no matters or circumstances that have arisen since the end of the financial year that

have significantly affected or may significantly affect the operations of the company, the

results of those operations, or the state of affairs of the company in future financial years.

18. MEMBERSHIP GUARANTEE

The entity is incorporated under the Corporations Act 2001 and is an entity limited by

guarantee. If the entity is wound up, the Constitution states that each member is required to

contribute a maximum of $5.00 towards meeting any outstanding obligations of the entity. At

31 December 2017, the number of members was 1,248 and the total member liability is $6,240


ACN 000 967 180

DIRECTORS’ DECLARATION

The directors have determined that the company is a reporting entity that does not have public

accountability as defined in AASB 1053: Application of Tiers of Australian Accounting

Standards and that these general purpose financial statements should be prepared in accordance

with Australian Accounting Standards – Reduced Disclosure Requirements.

In accordance with a resolution of the directors of Berowra RSL Club Limited the directors of the

company declare that:

1. The accompanying financial statements and notes are in accordance with the Corporations

Act 2001 and:

(a) comply with Australian Accounting Standards – Reduced Disclosure

Requirements;

(b) give a true and fair view of the Company’s financial position as at 31 December

2017 and of its performance for the year ended on that date.

2. In the directors’ opinion, there are reasonable grounds to believe that the Company will be

able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of Board of Directors this 23rd

day of

April 2018.

………………………………….……………

Garth Lindsay – Director / President

………………………………..………………

Andrew Robertson – Director/ Treasurer


ACN 000 967 180

INDEPENDENT AUDITORS REPORT

To the members of Berowra RSL Club Limited

Opinion

We have audited the financial report of Berowra RSL Club Limited (the company), which comprises the

statement of financial position as at 31 December 2017, the statement of profit or loss and other

comprehensive income, statement of changes in equity and statement of cash flows for the year then

ended, and notes to the financial statements, including a summary of significant accounting policies, and

the directors’ declaration.

In our opinion, the accompanying financial report of Berowra RSL Club Limited is in accordance with the

Corporations Act 2001, including:

(a) giving a true and fair view of the company's financial position as at 31 December 2017 and of its

performance for the year then ended; and

(b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the

Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under

those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial

Report section of our report. We are independent of the company in accordance with the auditor

independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting

Professional and Ethical Standards Board’s APES 110 : Code of Ethics for Professional Accountants (the

Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other

ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been

given to the directors of the company, would be in the same terms if given to the directors as at the time of

this auditor’s report.

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

opinion.

Information Other than the Financial Report and Auditor’s Report Thereon

The directors are responsible for the other information. The other information comprises the information

included in the company’s annual report for the year ended 31 December 2017, but does not include the

financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the

other information and accordingly we do not express any form of assurance conclusion thereon. In

connection with our audit of the financial report, our responsibility is to read the other information and, in

doing so, consider whether the other information is materially inconsistent with the financial report or our

knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we

have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true

and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for

such internal control as the directors determine is necessary to enable the preparation of the financial

report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the

going concern basis of accounting unless the directors either intend to liquidate the company or to cease

operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with Australian Auditing Standards will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and are considered material if, individually or

in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of the financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement

and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or

error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the company’s ability to continue as a going concern. If

we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report

to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s

report. However, future events or conditions may cause the company to cease to continue as a going

concern.

Evaluate the overall presentation, structure and content of the financial report, including the

disclosures, and whether the financial report represents the underlying transactions and events in a

manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within the company to express an opinion on the financial report. We are

responsible for the direction, supervision and performance of the company audit. We remain solely

responsible for our audit opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the

audit and significant audit findings, including any significant deficiencies in internal control that we

identify during our audit.

Signed on: 26 April 2018

Brigden & Partners Pty Ltd, Chartered Accountants

David Smith – Director

Level 3, 20 George Street, Hornsby NSW 2077

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