(a company limited by guarantee) annual report for the ... · david jones 11 10 michael haigh 11 11...

L I M I T E D (ABN 97 001 011 383)

(A Company Limited by Guarantee)

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

CONTENTS

President’s Report General Manager’s Report Appendix A – Financial Report Appendix B – Supplementary Information Appendix C – Bega RSL Club Mortality & Relief Fund Summary Appendix D – Donations Listing

L I M I T E D (ABN 97 001 011 383)

PRESIDENT’S REPORT

Dear Members, I am pleased to report a trading profit of $303,700, an increase of $63,000 on the previous year. This has allowed us to decrease our total debt by more than $300,000 and places the club in a strong financial position. The start of 2020 saw strong trading and we were well ahead of the previous year’s figures. However, with the corona virus basically closing both clubs our future profitability is not so clear. While the last four months has cost us a considerable amount of profit we are still in a strong financial position mainly due to our rental investments and the government JobKeeper scheme which has allowed us to keep most of our staff employed. The year saw us start with new caterers with Hagen and Manuela, and while they were just starting to find their feet before the virus I’m sure they will do an excellent job once we get up to full speed. Due to the virus, negotiations with Lincoln Place have slowed mainly because of uncertainty in how we will trade when we finally get back to normality, but the board still feels that a lifestyle development at the golf club is still the way forward. With this in mind we have engaged the firm of Russell Corporate Advisory to look at the Lincoln Place proposal as well as any other potential options. In conclusion I would like to thank all our volunteers and staff for all their hard work, and David and my fellow board members for all their time and effort during the year. I hope the next Presidents report will see both clubs back fully operational and profitable. Howard Blacker President

L I M I T E D (ABN 97 001 011 383)

GENERAL MANAGER’S REPORT

I am pleased to report a profit for the organisation of $303,700 which is up $63,177 on last year’s result of $240,523 and our EBITA is 21.1% which is up on last year’s 20.7% In my report last year, I reported my disappointment with the Club Bega bar trade which has thankfully turned around in 2019 to be up $128,273 in comparison to the 2018 result. The gaming room revenue also showed an improvement of $67,892 on the 2018 result. The Country Club remains a concern which can only be resolved with housing development attracting more golfers and bar trade but more importantly, a steady and reliable flow of rental income. As I write my report, I am waiting on a feasibility report from Russell Corporate Advisory in relation to the Lincoln Place proposal. I do believe the report will need to be revisited when the dust settles after the coronavirus is beaten. I would like to thank Mark and staff for providing a great golf course over the year along with Ken and Phil for their work on Club Bega’s greens and surrounds. I would also like to thank the administration and bar staff for their great efforts over the year with their polite and efficient service. A special thank you goes to the volunteers at both club’s helping to take some burden from the staff, especially cleaning up after storm damage and those who cook in the bistro at the Country Club on Friday nights. My final thanks go to the board for their support throughout the year and I know we are about to face some real challenges ahead. Thank you all for supporting the club and look forward to seeing you again soon. For updates relating to the clubs please visit clubbega.com.au for our Facebook page. David Mitchell General Manager

Bega RSL Club Limited ABN: 97 001 011 383

A Company Limited by Guarantee

APPENDIX A - Financial Statements For the Year Ended 31 December 2019


Contents For the Year Ended 31 December 2019

Page

Financial Statements Directors' Report 2 Auditors Independence Declaration under Section 307C of the Corporations Act 2001 4 Statement of Profit or Loss and Other Comprehensive Income 5 Statement of Financial Position 6 Statement of Changes in Equity 7 Statement of Cash Flows 8 Notes to the Financial Statements 9 Directors' Declaration 27 Independent Audit Report 28


Directors' Report 31 December 2019

2

The directors present their report on Bega RSL Club Limited for the financial year ended 31 December 2019.

1. General information

Information on directors The names of each person who has been a director during the year and to the date of this report are: Howard BLACKER

Qualifications Investor

Date of Appointment 25 March 2010

Richard COCK

Qualifications Maintenance

Date of Appointment 28 March 2012

David JONES

Qualifications Retired Teacher

Date of Appointment 17 April 2014

Brian MOORE

Qualifications Retired Manager


Jason HEFFERNAN

Qualifications Engineer

Date of Appointment 4 August 2016

Michael HAIGH

Qualifications Self Employed

Date of Appointment 2 May 2018

Monica CULLEN

Qualifications Caterer


Stephen KENNEDY

Qualifications Traffic Management

Date of Resignation 24 April 2019

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities The principal activity of Bega RSL Club Limited during the financial year were that of a Registered Club and provision of sporting facilities. No significant changes in the nature of the Company's activity occurred during the financial year.

Short and Long term objectives The Company's short and long term objectives are to provide quality Club and sporting facilities in Bega for the benefit of members and guests.

Strategy for achieving the objectives To achieve these objectives, the Company has adopts current registered club industry practices and strategies to ensure that the short and long term objectives are met.


Directors' Report 31 December 2019

3

Performance measures The following measures are used within the Company to monitor performance:

the quality of the service and facilities provided to members; the ability to generate strong cash flows from its operating activities; the trading and overall financial result; and the stability of the balance sheet with respect to the Company’s liquidity and the total levels of debt

Members' guarantee Bega RSL Club Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each member and any person who ceased to be a member in the year prior to the winding up, is limited to $10 subject to the provisions of the company's constitution. At 31 December 2019 the collective liability of members was $33,030 (2018: $30,850).

2. Other items

Future developments and results The break out of the COVID 19 virus, the community's response to the break out and associated government regulations inMarch 2020 have significantly affected the Company's operations. The main operations of the Company being the operationof two licensed Clubs have in the main been shut down by government regulations with minimal operating activities occurringat the two Clubs since 23 March 2020 and it is not known when normal operations will begin again. It is not known as at thedate of this report whether other operations of the company (e.g. investment property revenue) will be affected by the outbreak.The financial effect of these disruptions to operations will result in significant declines in operating revenue and operatingresults however the amount is not known as at the date of this report.

Meetings of directors During the financial year, 11 meetings of directors (including special meetings of directors) were held. Attendances by each director during the year were as follows:

Directors' Meetings

Number eligible to

attend Number attended

Howard BLACKER 11 9

Richard COCK 11 9

Monica CULLEN 8 7

David JONES 11 10

Michael HAIGH 11 11

Jason HEFFERNAN 11 11

Stephen KENNEDY 3 3

Brian MOORE 11 11

3. Auditor's Independence Declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 31 December 2019 has been received and can be found on page 4 of the financial report.

Signed in accordance with a resolution of the Board of Directors: Director: ...............................................................

Howard BLACKER

Director: ................................................................

Richard COCK BEGA Dated 6 April 2020

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Bega RSL Club Limited

4

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2019, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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

KOTHES Chartered Accountants

SIMON BYRNE Partner Registered Company Auditor (#153624) BEGA 6 April 2020


Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2019

The accompanying notes form part of these financial statements. 5

Note

2019

$

2018

$

Revenue - trading 5 3,371,750 3,105,606

Finance income – interest on bank deposits - 186

Gain on disposal of assets 4,545 3,183

Lease income 11 424,911 372,030

Cost of sales (449,576) (374,096)

Employee benefits expense (1,207,887) (1,108,053)

Depreciation and amortisation expense 6 (434,892) (399,381)

Finance expenses - borrowing costs (61,587) (79,052)

Advertising (45,338) (49,006)

Equipment rental (4,140) (42,099)

Insurance (114,682) (97,248)

Repairs and maintenance (345,292) (314,923)

Entertainment expenses (116,625) (118,662)

Poker machine tax and monitoring (216,764) (188,377)

Promotions (116,530) (80,266)

Lighting, power and gas (112,480) (114,557)

Rates, land tax and rent (84,824) (80,074)

Other expenses (186,889) (194,688)

Surplus before income tax 303,700 240,523 Income tax expense 3(a) - -

Surplus from continuing operations 303,700 240,523

Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year 303,700 240,523

The Company has initially applied AASB 15 and AASB 1058 using the cumulative effect method and has not restated comparatives. The comparatives have been prepared using AASB 118, AASB 1004 and related interpretations.

The Company has initially applied AASB 16 using the cumulative effect method and has not restated comparatives. The comparatives have been prepared using AASB 117 and related interpretations.


Statement of Financial Position 31 December 2019


Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 7 137,936 139,100

Trade and other receivables 8 55,778 16,285

Inventories - stock on hand 37,712 30,257

Prepayments 83,919 75,664

TOTAL CURRENT ASSETS 315,345 261,306

NON-CURRENT ASSETS

Trade and other receivables - TAB security deposit 5,000 5,000

Property, plant and equipment 9 3,489,867 3,471,501

Investment properties 10 4,433,087 4,501,281

Right-of-use assets 11 60,275 -

TOTAL NON-CURRENT ASSETS 7,988,229 7,977,782

TOTAL ASSETS 8,303,574 8,239,088

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 12 259,362 255,860

Borrowings 14 251,578 236,422

Other liabilities 13 18,839 -

Lease liabilities 11 157 -

Short-term provisions 15 34,939 34,584

Employee benefits 16 153,960 141,859

TOTAL CURRENT LIABILITIES 718,835 668,725

NON-CURRENT LIABILITIES

Borrowings 14 1,284,824 1,632,889

Lease liabilities 11 58,741 -

TOTAL NON-CURRENT LIABILITIES 1,343,565 1,632,889

TOTAL LIABILITIES 2,062,400 2,301,614

NET ASSETS 6,241,174 5,937,474

EQUITY

Retained earnings 6,241,174 5,937,474

TOTAL EQUITY 6,241,174 5,937,474




Statement of Changes in Equity For the Year Ended 31 December 2019


2019

Retained Earnings

$

Balance at 1 January 2019 5,937,474

Surplus for the year 303,700

Balance at 31 December 2019 6,241,174

2018

Retained Earnings

$

Balance at 1 January 2018 5,696,951

Surplus for the year 240,523

Balance at 31 December 2018 5,937,474


Statement of Cash Flows For the Year Ended 31 December 2019


Note

2019

$

2018

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and members 4,135,340 3,840,941

Payments to suppliers and employees (3,360,112) (3,124,620)

Interest received - 186

Interest paid (61,587) (79,052)

Net cash provided by/(used in) operating activities 713,641 637,455

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for property, plant and equipment (342,655) (91,290)

Payments for investment property (38,391) (156,081)

Proceeds from sale of property, plant and equipment 4,545 13,822

Net cash provided by/(used in) investing activities (376,501) (233,549)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from borrowings - 50,000

Repayment of borrowings (332,909) (543,689)

Repayment of lease (5,395) -

Net cash provided by/(used in) financing activities (338,304) (493,689)

Net increase/(decrease) in cash and cash equivalents held (1,164) (89,783)

Cash and cash equivalents at beginning of year 139,100 228,883

Cash and cash equivalents at end of financial year 7 137,936 139,100




Notes to the Financial Statements For the Year Ended 31 December 2019

9

The financial report covers Bega RSL Club Limited as an individual entity. Bega RSL Club Limited is a Not-for-profit Company limited by guarantee, incorporated and domiciled in Australia. The Company was incorporated as a Company limited by guarantee on 13 July 1972 (# 001 011 383) under the NSW Companies Act, 1961, NSW. It is registered with the Australian Business Register - Australian Business Number 97 001 011 383 and is registered for Goods & Services Tax purposes. The registered office and principal place of business of the company is 82 Gipps Street, BEGA, NSW, 2550.

The functional and presentation currency of Bega RSL Club Limited is Australian dollars.

The financial report was authorised for issue by the Directors on 6 April 2020.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001.

2 Change in Accounting Policy

Revenue from Contracts with Customers - Adoption of AASB 15

The Company has adopted AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not-for-Profit Entities for the first time in the current year with a date of initial application of 1 January 2019.

The Company has applied AASB 15 and AASB 1058 using the cumulative effect method which means the comparative information has not been restated and continues to be reported under AASB 118, AASB 1004 and related interpretations. There were no prior year adjustments on adoption of AASB 15 and AASB 1058 to any account balances, only changes in the presentation in the financial statements.

Changes in presentation

The Company has amended the presentation of the liability for member subscriptions received in advance which has been transferred from Trade and Other Payables to Other Liabilities.

Leases - Adoption of AASB 16

The Company has adopted AASB 16 Leases using the modified retrospective (cumulative catch-up) method from 1 January 2019 and therefore the comparative information for the year ended 31 December 2018 has not been restated and has been prepared in accordance with AASB 117 Leases and associated Accounting Interpretations.




Leases - Adoption of AASB 16

10

Impact of adoption of AASB 16

The impact of adopting AASB 16 is described below:

Company as a lessee

Under AASB 117, the Company assessed whether leases were operating or finance leases based on its assessment of whether the significant risks and rewards of ownership had been transferred to the Company or remained with the lessor. Under AASB 16, there is no differentiation between finance and operating leases for the lessee and therefore all leases which meet the definition of a lease are recognised on the statement of financial position (except for short-term leases and leases of low value assets).

The Company has elected to use the exception to lease accounting for short-term leases and leases of low value assets, and the lease expense relating to these leases are recognised in the statement of profit or loss on a straight line basis.

Practical expedients used on transition

AASB 16 includes a number of practical expedients which can be used on transition, the Company has used the following expedients:

contracts which had previously been assessed as not containing leases under AASB 117 were not re-assessed on transition to AASB 16;

lease liabilities have been discounted using the Company's incremental borrowing rate at 1 January 2019;

right-of-use assets at 1 January 2019 have been measured at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued lease payments;

excluded leases with an expiry date prior to 31 December 2020 from the statement of financial position and lease expenses for these leases have been recorded on a straight-line basis over the remaining term;

used hindsight when determining the lease term if the contract contains options to extend or terminate the lease;

Financial statement impact of adoption of AASB 16

The Company has recognised right-of-use assets of $64,293 and lease liabilities of $64,293 at 1 January 2019, for leases previously classified as operating leases.

The weighted average lessee's incremental borrowing rate applied to lease liabilities at 1 January 2019 was 5.00%.

$

Lease commitments at 31 December 2018 112,565

Less: Interest calculated for term of lease (48,272)

Discounted using the incremental borrowing rate at 1 January 2019 64,293

Lease liabilities recognised at 1 January 2019 64,293




11

Company as a lessor

For the arrangements where the Company is a lessor, there are no significant accounting policy changes on adoption of AASB 16.

The Company has applied AASB 15 Revenue from Contracts with Customers to allocate consideration in the contract to each lease and non-lease component.

3 Summary of Significant Accounting Policies

(a) Income Tax

The Company is a Not-for-Profit Entity with a main objective of providing quality sporting facilities in Bega NSW. The Board has reviewed its income tax status and have assessed the Company to be exempt from income tax under section 50-45 of the Income Tax Assessment Act, 1997 (Cth). Consequently, no provision for taxation has been made in the financial statements.

(b) Revenue and other income

For comparative year

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

Revenue from contracts with customers

For current year

The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. Revenue is recognised by applying a five-step model as follows:

1. Identify the contract with the customer

2. Identify the performance obligations

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations

5. Recognise revenue as and when control of the performance obligations is transferred

Generally the timing of the payment for sale of goods and rendering of services corresponds closely to the timing of satisfaction of the performance obligations, however where there is a difference, it will result in the recognition of a receivable, contract asset or contract liability.




Revenue from contracts with customers

12

None of the revenue streams of the Company have any significant financing terms as there is less than 12 months between receipt of funds and satisfaction of performance obligations.

Specific revenue streams

The revenue recognition policies for the principal revenue streams of the Company are:

Sales revenue

Sale revenue includes bar sales, poker machine income, catering income, greens income, keno income and TAB income. All of the services and goods for these revenue items are provided to customers at the time of the sale and income is accounted for at that time. If deposits are held for any of these revenue items a liability is booked until the service or goods have been provided to the customer and then for as income.

Membership income

Membership income is received in advance for the period of membership paid for. A liability is booked for membership income received in advance with the income spread over the membership period paid for.

Other income

Other income is recognised on an accruals basis when the Company is entitled to it.

(c) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST. Cash flows in the statement of cash flows are included 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 operating cash flows.

(d) Volunteer services

No amounts are included in the financial statements for services donated by volunteers.

(e) Inventories

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

(f) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment.

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value.




(f) Property, Plant and Equipment

13

Land and buildings

Land and buildings are measured using the cost model.

Plant and equipment

Plant and equipment are measured using the cost model.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assets useful life to the Company, commencing when the asset is ready for use.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life.

The estimated useful lives used for each class of depreciable asset are shown below:

Fixed asset class Useful life

Buildings 40 years

Plant and Equipment 3-15 years

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

(g) Investment properties

Investment properties are held at cost which includes expenditure that is directly attributable to the acquisition of the investment properties. The investment properties are depreciated on a straight line basis over 40 years.

(h) Financial instruments

Financial instruments are recognised initially on the date that the Company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Classification

On initial recognition, the Company has only ever held financial assets categorised as at 'amortised cost'.




Financial assets

14

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets.

Amortised cost

Assets measured at amortised cost are financial assets where:

the business model is to hold assets to collect contractual cash flows; and

the contractual terms give rise on specified dates to cash flows are solely payments of principal and interest on the principal amount outstanding.

The Company's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment.

Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or loss on derecognition is recognised in profit or loss.

Impairment of financial assets

Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets measured at amortised cost.

When determining whether the credit risk of a financial assets has increased significant since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company's historical experience and informed credit assessment and including forward looking information.

The Company uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk.

The Company uses the presumption that a financial asset is in default when the other party is unlikely to pay its credit obligations to the Company in full, without recourse to the Company to actions such as realising security (if any is held).

Credit losses are measured as the present value of the difference between the cash flows due to the Company in accordance with the contract and the cash flows expected to be received. This is applied using a probability weighted approach.

Trade receivables

Impairment of trade receivables have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Company has determined the probability of non-payment of the receivable and multiplied this by the amount of the expected loss arising from default.




Financial assets

15

The amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is written off against the associated allowance.

Where the Company renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss.

Other financial assets measured at amortised cost

Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised.

Financial liabilities

The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are measured at amortised cost using the effective interest rate method.

The financial liabilities of the Company comprise trade payables, bank and other loans and lease liabilities.

(i) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

(j) Leases

For comparative year

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the life of the lease term.

For current year

At inception of a contract, the Company assesses whether a lease exists - i.e. does the contract convey the right to control the use of an identified asset for a period of time in exchange for consideration. This involves an assessment of whether:

The contract involves the use of an identified asset - this may be explicitly or implicitly identified within the agreement. If the supplier has a substantive substitution right then there is no identified asset.

The Company has the right to obtain substantially all of the economic benefits from the use of the asset throughout the period of use.

The Company has the right to direct the use of the asset i.e. decision making rights in relation to changing how and for what purpose the asset is used.




(j) Leases

16

Lessee accounting

At the lease commencement, the Company recognises a right-of-use asset and associated lease liability for the lease term. The lease term includes extension periods where the Company believes it is reasonably certain that the option will be exercised.

The right-of-use asset is measured using the cost model where cost on initial recognition comprises of the lease liability, initial direct costs, prepaid lease payments, estimated cost of removal and restoration less any lease incentives received.

The right-of-use asset is depreciated over the lease term on a straight line basis and assessed for impairment in accordance with the impairment of assets accounting policy.

The lease liability is initially measured at the present value of the remaining lease payments at the commencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Company's incremental borrowing rate is used.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. The lease liability is remeasured whether there is a lease modification, change in estimate of the lease term or index upon which the lease payments are based (e.g. CPI) or a change in the Company's assessment of lease term.

Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Exceptions to lease accounting

The Company has elected to apply the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal to 12 months) and leases of low-value assets. The Company recognises the payments associated with these leases as an expense on a straight-line basis over the lease term.

Lessor accounting

When the Company is a lessor, the lease is classified as either an operating or finance lease at inception date based on whether substantially all of the risks and rewards incidental to ownership of the underlying asset have been transferred to the lessee. If the risks and rewards have been transferred then the lease is classified as a finance lease, otherwise it is an operating lease.

If the lease contains lease and non-lease components then the non-lease components are accounted for in accordance with AASB 15 Revenue from Contracts with Customers.

The lease income from operating leases is recognised on a straight line basis over the lease term.




17

(k) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

(l) Provisions

Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

(m) Net current deficit At 31 December 2019, the company was in a net current liability position of $403,490 (2018: net current liability position $407,419). Notwithstanding this, management have prepared the accounts on a going concern basis on the basis of the following: Included in current liabilities is long service leave of $87,044, a significant portion of which is not expected

to be called upon in the next 12 months. The company records significant positive operating cash flows each year. The company has $1,294,056 of undrawn borrowing facilities available at 31 December 2019.

(n) Adoption of new and revised accounting standards

The Company has adopted all standards which became effective for the first time at 31 December 2019, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the Company or refer to Note 2 for details of the changes due to standards adopted.

4 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. There are no significant estimates and judgements which would have a significant effect on the financial statements.



18

5 Revenue and Other Income

Revenue from continuing operations

2019

$

2018

$

Revenue from contracts with customers (AASB 15)

- Bar sales 1,045,045 890,203

- Course Income - Country Club 163,604 163,939

- Food service sales - 18,715

- Keno commission 39,583 50,503

- Poker machine income 1,631,927 1,597,454

- Pro shop sales 8,668 8,007

- TAB commission 16,758 20,771

- Entertainment income 73,990 76,499

- Member subscriptions 71,586 75,032

- Caterer rent and room hire 27,944 24,045

- Commissions 16,111 15,206

- Poker machine lease income 76,650 16,713

- Sporting club income and contributions 70,247 58,084

- Investment property outgoings income 122,687 83,805

- Sundry revenue 6,950 6,630

Total Revenue 3,371,750 3,105,606

Disaggregation of revenue from contracts with customers

Revenue from contracts with customers has been disaggregated into revenue recognised at a point in time and over time which is only applicable to membership subscriptions, and the following table shows this breakdown:

2019

$

Timing of revenue recognition

- At a point in time 3,300,164

- Over time - membership subscriptions 71,586

Revenue from contracts with customers 3,371,750



19

6 Result for the Year

The result for the year includes the following specific expenses:

2019

$

2018

$

Depreciation and amortisation

Buildings 77,480 75,560

Plant and equipment 137,834 122,383

Poker machines 108,975 102,525

Investment property 106,585 98,913

Amortisation of right-of-use assets - land lease 4,018 -

434,892 399,381

7 Cash and cash equivalents

Cash at bank and in hand 137,936 139,100

The above figure is reconciled to cash at the end of the financial year as shown in the statement of cashflows. Cash on hand included in the above balance is restricted to daily operational use.

8 Trade and other receivables

CURRENT

Trade receivables 50,823 5,129

Other receivables 4,955 11,156

Total current trade and other receivables 55,778 16,285

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.



20

9 Property, plant and equipment

2019

$

2018

$

CORE PROPERTY - LAND AND BUILDINGS

Freehold land

At cost 689,333 689,333

Total Land 689,333 689,333

Buildings

At cost 2,631,327 2,612,193

Accumulated depreciation (630,805) (553,325)

Total buildings 2,000,522 2,058,868

Total land and buildings 2,689,855 2,748,201

PLANT AND EQUIPMENT

Plant and equipment

At cost 1,548,129 1,429,074

Accumulated depreciation (1,144,246) (1,012,078)

Total Plant and equipment 403,883 416,996

Poker machines

At cost 1,516,070 1,357,211

Accumulated depreciation (1,119,941) (1,050,907)

Total Poker machines 396,129 306,304

Total plant and equipment 800,012 723,300

Total property, plant and equipment 3,489,867 3,471,501

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Land

$

Buildings

$

Plant and Equipment

$

Poker machines

$

Total

$

Year ended 31 December 2019 Balance at the beginning of year 689,333 2,058,868 416,996 306,304 3,471,501

Additions - 19,134 124,721 198,800 342,655

Depreciation expense - (77,480) (137,834) (108,975) (324,289)

Balance at the end of the year 689,333 2,000,522 403,883 396,129 3,489,867



9 Property, plant and equipment

21

(b) Land & Buildings

Land and buildings at the Country Club complex were valued for the Club’s bank as at 25 July 2011 by an independent valuer. This value far exceeded the book value that is carried in the financial statements.

Land and buildings at the Club Bega complex were valued for the Club’s bank as at 30 August 2016 by an independent valuer. This value far exceeded the book value that is carried in the financial statements.

Land at Club Bega (Gipps Street) has been booked at the valuation from the Department of Lands on 29 December 2009. This valuation has been deemed as the fair value of the land which was transferred to the Company upon the amalgamation with Bega Bowling & Sporting Club Limited on 12 August 2010.

(c) Non-current assets pledged as security

Refer to Note 14 for information on non-current assets pledged as security by the Company.

10 Investment Property

Investment Properties

2019

$

2018

$

Stratum - Sapphire Coast Market Place 2,342,976 2,353,335

153-159 Auckland Street 2,090,111 2,147,946

Total 4,433,087 4,501,281

Balance at beginning of the period 4,501,281 4,444,113

Acquisitions 38,391 156,081

Depreciation (106,585) (98,913)

Balance at end of the period 4,433,087 4,501,281

Non-current assets pledged as security Refer to Note 14 for information on non-current assets pledged as security by the Company.

Valuation of Investment Properties The Stratum property was valued for the Club’s bank as at 4 June 2018 by an independent valuer. This value far exceeded the book value that is carried in the financial statements. The property at 153-159 Auckland Street was purchased in August 2017. Both properties are accounted for at cost less accumulated depreciation.



22

11 Leases

The Company has applied AASB 16 using the modified retrospective (cumulative catch-up) method and therefore the comparative information has not been restated and continues to be reported under AASB 117 and related Interpretations.

Company as a lessee

The Company has a lease for land at the Country Club complex. The lease expires in April 2036. Lease (rental) payments are made annually.

Information relating to the leases in place and associated balances and transactions are provided below.

Concessionary lease

The Company has elected to measure the right of use asset arising from the concessionary lease at cost which is based on the associated lease liability. The lease of the golf course land has been accounted for in this manner as the use of the land is restricted and the lease term currently expires in April 2036. Yearly lease fees for this land are non-interest bearing and are increased by the CPI each year.

Right-of-use assets

Land

$

Year ended 31 December 2019

Operating lease capitalised 1 January 2019 64,293

Amortisation charge for year (4,018)

Balance at end of year 60,275

Lease liabilities

2019

$

2018

$

Lease liabilities - current 157 -

Lease liabilities - non-current 58,741 -

Total 58,898 -

The initial liability booked for the lease to April 2036 was $64,293 (equal to amount allocated to Right of Use asset). The 2019-2020 lease (rental) payment was $5,395. Future rental commitments are not known however will be at least $5,395 p.a. plus CPI each year.

Statement of Profit or Loss and Other Comprehensive Income

The amounts recognised in the statement of profit or loss and other comprehensive income relating to leases where the Company is a lessee are shown below:

Amortisation of right-of-use assets (4,018) -

Statement of Cash Flows

Total cash outflow for leases 5,395 -



11 Leases

23

Company as a lessor

Operating leases

The Company leases out a number of properties to various government and not-for-profit bodies. These leases have been classified as operating leases for financial reporting purposes and the assets are included as investment property in the statement of financial position (refer note 10).

The amounts recognised in the statement of profit or loss and other comprehensive income relating to operating leases where the Company is a lessor are shown below:

2019

$

2018

$

Operating leases

Investment property rental income 424,911 372,030

Maturity analysis of lease receivables showing the undiscounted lease payments to be received after reporting date for operating leases:

< 1 year 368,182 360,324

Between 1 – 2 years 314,158 360,324

Between 2 – 3 years 164,255 306,300

Between 3 – 4 years 56,980 160,326

Between 4 – 5 years - 56,980

Total undiscounted lease receivable 903,575 1,244,254

12 Trade and Other Payables

Current

Trade payables 220,606 183,674

Income received in advance 6,556 6,197

Sundry payables and accrued expenses 32,200 44,815

Members subscriptions in advance ** - 21,174

259,362 255,860

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

** Members subscriptions in advance transferred to Other Liabilities in current year.



24

13 Other liabilities

2019

$

2018

$

CURRENT

Members subscriptions in advance 18,839 -


14 Borrowings

CURRENT

Unsecured liabilities:

Other loans - Mortality & Relief Fund 36,000 36,000

Secured liabilities:

Bank loan 215,578 200,422

Total current borrowings 251,578 236,422

NON-CURRENT

Unsecured liabilities:

Other loans - Mortality & Relief Fund 568,000 604,000

Secured liabilities:

Bank loan 716,824 1,028,889

Total non-current borrowings 1,284,824 1,632,889

Total borrowings 1,536,402 1,869,311

Security for Borrowings

Bank Loan - First Registered Mortgage over the Club property located at Gipps Street, Bega - First Registered Mortgage over the Club property located at 153-159 Auckland Street, Bega.. - First Registered Mortgage over the Club property located at 77 Upper Street, Bega. - Registered equitable mortgage over all the assets and undertakings.

Mortality & Relief Fund Loan This is an unsecured loan and is interest bearing (2% p.a.).

Financing Facilities The Company has a bank loan facility which with normal repayments per the loan facility would be $2,226,458 as at 31 December 2019 with $1,294,056 remaining as at 31 December 2019. Additionally, the Company has access to a business card facility of $10,000. The bank loan facility is in place to July 2023 and is reviewed on an annual basis.



25

15 Provisions

2019

$

2018

$

CURRENT

Provision for poker machine jackpots and bonus points 34,939 34,584

16 Employee Benefits

Current liabilities

Long service leave 87,044 62,684

Provision for annual leave 66,916 79,175

153,960 141,859

17 Leasing Commitments

Minimum lease payments under operating leases:

- not later than one year 2,415 4,140

- between one year and five years - 2,415

2,415 6,555

One operating lease is in place for club equipment. It ends in July 2020 and has not been capitalised under AASB 16 Leases.

18 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstandings and obligations of the Company. At 31 December 2019 the number of members was 3,303 (2018: 3,085).

19 Key Management Personnel Disclosures

The directors did not receive any remuneration from the company during the year other than reimbursement of out-of-pocket expenses that have been fully substantiated.

Other key management personnel transactions The Company is run by the Board of Directors. All major business decisions are made by the Board. The day to day business of the Company is run by the employees of the Company. As all major business decisions are made by the Board, no key management personnel disclosures are deemed appropriate.

20 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2019 (31 December 2018: None).



26

21 Related Parties

(a) The Company's main related parties are as follows:

Key management personnel - refer to Note 19.

Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members.

(b) Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Director Michael Haigh received $336 during the financial year for services provided to the company under normal commercial terms and conditions. Director David Jones’s son’s partner was employed by the company during the financial year under normal commercial terms and conditions.

22 Events Occurring After the Reporting Date

The financial report was authorised for issue on 6 April 2020 by the Board of Directors.

The break out of the COVID 19 virus, the community's response to the break out and associated government regulations in March 2020 have significantly affected the Company's operations. The main operations of the Company being the operation of two licensed Clubs have in the main been shut down by government regulations with minimal operating activities occurring at the two Clubs since 23 March 2020 and it is not known when normal operations will begin again. It is not known as at the date of this report whether other operations of the company (e.g. investment property revenue) will be affected by the outbreak. The financial effect of these disruptions to operations will result in significant declines in operating revenue and operating results however the amount is not known as at the date of this report.

Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

23 Associated Entities

2019

$

2018

$

- Ladies' Bowls 2,384 14,679

- Ladies' Golf 11,655 17,270

- Men's Bowls 26,427 27,793

- Men's Golf 5,952 13,489

Total 46,418 73,231

There are currently four associated sports bodies as recognised under the constitution of the Company, managed and controlled by separate committees set up under the conditions inherent in those articles. These committee’s income and expenditure has not been consolidated in the books of account of the Company nor have they been part of the audit process of Bega RSL Club Limited. Men’s Golf, Ladies Golf and Men’s Bowls are audited by Kothes Chartered Accountants as a separate entity to Bega RSL Club Limited. These bodies hold funds in various bank accounts and investments as at December 31, 2019.


Directors' Declaration

27

The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 5 to 26, are in accordance with the Corporations Act 2001 and:

a. comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position as at 31 December 2019 and of the performance for the year ended on that date of the Company.

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 the Board of Directors.

Director .................................................................. Howard BLACKER

Director .................................................................. Richard COCK

BEGA Dated 6 April 2020

Independent Audit Report to the members of Bega RSL Club Limited

28

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Bega RSL Club Limited (the Company), which comprises the statement of financial position as at 31 December 2019, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the 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 the Company is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company's financial position as at 31 December 2019 and of its financial performance for the year ended; and

(ii) 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.

Other Information

The directors are responsible for the other information. The other information obtained at the date of this auditor's report is included in the annual report, (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 on the other information obtained prior to the date of this auditor's report, 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 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 - Reduced Disclosure Requirements 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.

Independent Audit Report to the members of Bega RSL Club Limited (Continued)

29

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 Entity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's 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 Entity'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 Entity to cease to continue as a going concern.

We communicate with those charged with governance 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.

KOTHES Chartered Accountants


APPENDIX B - Supplementary Information For the Year Ended 31 December 2019

The additional financial data presented on the following pages is in accordance with the books and records of the Company which have been subjected to the auditing procedures applied in our statutory audit of the Company for the year ended 31 December 2019. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Bega RSL Club Limited) in respect of such data, including any errors of omissions therein however caused. KOTHES Chartered Accountants


LIMITED (ABN 97 001 011 383)

2015 2016 2017 2018 2019

Bar Sales 869,651 859,542 823,705 890,203 1,032,234

Poker Machine Receipts 1,511,155 1,543,921 1,627,072 1,572,692 1,607,626

Employee Expenses 899,317 989,696 1,155,658 1,108,053 1,208,218

Depreciation 390,122 359,859 356,658 399,830 430,874

Operating Surplus/(Deficit) 130,357 244,577 112,335 240,523 303,700

EBITDA % 17.8% 16.0% 16.0% 20.7% 21.1%

Net Assets 5,340,039 5,584,616 5,696,951 5,937,474 6,241,174

5 YEAR SUMMARY - KEY FIGURES

APPENDIX B ‐ PAGE 1

2019 2018

Bar & Catering Sales 305,156 310,113

Purchases - Bar CC 141,886 143,488Stock Movement - Bar CC (4,807) 1,472Bar Rebate CC 0 (2,378)Total Cost of Good Sold 137,079 142,582

Wages - Bar CC 136,227 133,242Gas Bar CC 1,063 1,709R&M Bar CC 814 279Unders/Overs - Bar CC (2,180) (639)Total Direct Costs 135,924 134,591

Gross Profit - Tarraganda Bar 168,077 167,531

Gross Profit Margin - Tarraganda Bar 55% 54%

Net Profit/(Loss) - Tarraganda Bar 32,153 32,940

Poker Machine Revenue 74,035 106,993

Wages - Gaming CC 30,271 27,654R&M Poker Machines CC 6,742 8,921Depreciation Exp. P/M CC 13,080 14,222Data Monitoring CC 4,365 3,938P/M Rebate CC (7,121) (10,234)Unders/Overs - Gaming CC (175) (462)Total Poker Machine Direct Costs 47,161 44,038

Profit/(Loss) - Tarraganda Poker Machines 26,874 62,956

Keno Revenue 13,044 19,300Keno Expense 1,665 1,602

Profit/(Loss) - Tarraganda Keno 11,380 17,697

Pro Shop Sales 8,668 8,619

Purchases - Pro Shop 7,235 6,777Stock Movement - Proshop (748) (1,737)Total Cost of Goods Sold 6,487 5,040Unders/Overs - Pro Shop 359 612

Profit/(Loss) - Pro Shop 1,821 2,967

Tarraganda - Poker Machines

For the year ended 31 December 2019

Cost of Good Sold

DIVISIONAL TRADING ACCOUNTS

Direct Costs

Tarraganda - Pro Shop

Bega RSL Club Ltd.

Poker Machine Direct Costs

Tarraganda - Bar

Tarraganda - Keno

Cost of Goods Sold

APPENDIX B - PAGE 2

2019 2018


DIVISIONAL TRADING ACCOUNTSBega RSL Club Ltd.

Golf Sponsorship Revenue 22,773 19,332Green Fee Revenue CC 44,364 50,213Golf Membership Revenue CC 58,789 64,757Competition Fees 45,934 45,418Cart Hire Revenue 44,378 42,273Fuel Tax Rebate 6,154 6,703Total Golf Course Revenue 222,392 228,696

R&M Course CC 96,249 83,659Affiliation Fees Golf CC 7,563 7,402Electricity Golf Course CC 18,770 20,647Fuel & Oil CC 16,776 17,512Wages - Course CC 178,311 174,659Superannuation - Course CC 7,950 0Water Expense Course 1,928 4,303Total Direct Costs 327,549 308,183

Profit/(Loss) - Tarraganda Course (105,156) (79,486)

Bar 32,153 32,940

Poker Machines 26,874 62,956

Keno 11,380 17,697

Pro Shop 1,821 2,967

Course (105,156) (79,486)

Total Department P/(L) - Tarraganda (32,929) 37,074

Direct Costs

Tarraganda - Course

Tarraganda - Department P/(L)

Golf Course Revenue

APPENDIX B - PAGE 3

2019 2018



Advertising Expense CC 6,597 15,712Amortisation - Leased Land CC 4,018 0Audit Fees CC 1,188 3,960Bank Charges CC 1,946 2,690Bingo Expenses CC 0 388Cleaning Supplies CC 5,716 6,253Computer Costs CC 1,826 933Depreciation Exp. CC 50,898 46,100Electricity CC 28,322 31,617Equipment Rental Exp. CC 0 2,246Garbage Collection CC 3,704 3,788Gas & Heating CC 3,019 3,028Insurance CC 28,670 24,452Members Draw CC 1,864 1,791Music Entertainment Exp. CC 6,383 6,685Other Expenses CC 2,379 2,083Payroll Tax CC 2,802 2,847Post/Print/Stat. CC 2,194 2,875Promotions Exp. CC 9,660 11,007R&M Clubhouse CC 12,662 12,861Raffle Expense CC 18,483 17,690Rates - Water CC 1,197 2,654Rates & Taxes CC 5,453 10,235Staff Amenities CC 966 921Staff Uniforms CC 2,295 564Telephone CC 5,198 3,823Wages - Cleaning CC 12,604 13,031Worker's Comp. Ins CC 471 595

Total Tarraganda - Expenditure 220,514 230,829

ATM/EFTPOS Revenue CC 1,432 1,265Bega Ball Drop CC 7,404 6,872Bingo Revenue CC 0 1,053P/M Lease Revenue CC 60,684 13,211Profit/Loss On Sale Asset CC 4,545 543Raffle Revenue CC 20,914 20,026Room Hire CC 2,900 1,131Sporting Clubs Contrib. Golf 24,457 15,000Squash Revenue CC 22,492 22,851Sundry Revenue CC 3,573 3,807Vending Machine Revenue CC 395 474

Total Tarraganda - Other Income 148,795 86,232

Total Profit/(Loss) - Tarraganda (104,648) (107,522)

Tarraganda - Expenditure

Tarraganda - Other Income

APPENDIX B - PAGE 4

2019 2018



Bar Sales 727,079 598,806

Purchases - Bar CB 307,909 250,171Stock Movement - Bar CB (1,899) (752)Total Cost of Goods Sold 306,010 249,419

Wages - Bar CB 292,007 266,496Gas Bar CB 1,358 1,170R&M Bar CB 1,279 775Unders/Overs - Bar CB 316 864Total Direct Costs 294,960 269,305

Gross Profit - Club Bega Bar 421,069 349,386

Gross Profit Margin - Club Bega Bar 58% 58%

Profit/(Loss) - Club Bega Bar 126,109 80,081

Poker Machine Revenue 1,533,591 1,465,699

Wages - Gaming CB 110,157 105,427P/M Bonus Prizes Exp. CB 35,201 18,414P/M Rental Exp. CB 0 29,138P/M Tax Expense CB 192,319 167,455R&M Poker Machines CB 44,722 44,884Depreciation Exp. P/M CB 95,895 88,303Data Monitoring CB 20,080 20,922P/M Rebate CB (17,180) (17,180)Other Expenses Gaming CB 2,076 4,516Unders/Overs - Gaming CB 629 303Total Direct Costs 483,898 462,181

Profit/(Loss) - Club Bega Poker Machines 1,049,693 1,003,518

Keno Revenue 26,538 31,203Keno Expenses 5,201 5,125

Profit/(Loss) - Club Bega Keno 21,337 26,078

TAB Revenue 16,758 20,771

TAB Expenses CB 8,125 5,314TV Expenses CB 15,533 17,019Total Direct Costs 23,659 22,333

Profit/(Loss) - Club Bega TAB (6,901) (1,562)

Direct Costs

Club Bega - Keno

Cost of Goods Sold

Club Bega - Bar

Direct Costs

Direct Costs

Club Bega - Poker Machines

Club Bega - TAB

APPENDIX B - PAGE 5

2019 2018



Bar 126,109 80,081

Poker Machines 1,049,693 1,003,518

Keno 21,337 26,078

TAB (6,901) (1,562)

Total Club Bega - Department P/(L) 1,190,239 1,108,115

Advertising Expense CB 38,741 33,294Affiliation Fees Subs CB 5,859 6,914Audit Fees CB 19,097 15,600Bank Charges CB 4,533 3,671Cleaning Supplies CB 12,989 12,301Computer Costs CB 34,789 21,505Consulting & Accounting 7,273 6,570Depreciation Exp. CB 164,417 151,843Directors Meals/Drinks CB 1,927 1,988Donation Expense CB 22,262 34,144Electricity CB 62,370 57,518Entertainment - Bingo 4,465 2,391Entertainment - Raffles 38,806 38,505Entertainment - Bands/Other 32,954 35,983Garbage Collection CB 3,073 3,864Insurance CB 44,726 37,518Licensing Fees CB 6,686 6,144Members Draw CB 12,364 12,468Motor Vehicle Expenses 15,309 14,529Other Expenses CB 4,600 3,278Post/Print/Stat. CB 13,800 9,303Promotions Exp. CB 57,442 35,277Rates & Taxes CB 34,170 32,371Rent - Equipment 4,140 10,715Repairs & Maintenance 58,794 55,957Payroll Tax CB 10,878 11,288Staff Salaries & Wages 262,255 204,262Staff Wages Accrual Leave 0 22,765Staff Amenities CB 11,627 10,482Staff Superannuation - CSGC 25,670 21,313Staff Training & Wellbeing CB 27,698 23,852Staff Uniforms CB 2,152 1,512Telephone CB 16,275 8,979Unders/(Overs) - Admin (1,860) (100)Wages & Super - Bowling Green 91,661 86,388Worker's Comp. Ins CB 1,885 758

Total Expenditure - Club Bega 1,153,826 1,035,149

Club Bega - Department P/(L)

Expenditure - Club Bega

APPENDIX B - PAGE 6

2019 2018



ATM/EFTPOS Revenue CB 13,999 13,163Bar Rebate CB 12,811 11,679Bingo Revenue CB 20,488 16,510Bowling Green Revenue 15,894 13,361Interest Revenue 0 620P/M Lease Revenue CB 15,966 3,502Profit/Loss On Sale Asset CB 0 2,640Raffle Revenue CB 32,589 35,221Rent Caterers CB 13,000 10,400Room Hire CB 12,045 12,515Social Membership Revenue CB 12,798 10,275Sundry Revenue CB 1,600 6,511Vending Machine Revenue CB 285 304Return and Earn 1,777 0

Total Club Bega - Other Income 153,251 136,702

Total Profit/(Loss) - Club Bega 189,664 209,668

Rental Income Stratum 234,069 186,482Outgoings Income Stratum 22,675 6,993Total Income - Stratum 256,744 193,475

Depreciation Exp. Stratum 67,805 61,267Insurance Stratum 25,230 21,296Interest Expense Stratum 17,691 20,956Land Tax - Stratum 2,513 2,606Legal Fees Stratum 0 7,893Other Expenses Stratum 2,475 5,521R&M Stratum 21,927 19,696Rates & Taxes Stratum 13,420 12,425Total Direct Costs 151,061 151,659

Total Profit/(Loss) - Stratum 105,682 41,816

Rental Income Auckland Street 190,842 185,547Outgoings Income Auckland 100,012 76,812Total Income - Auckland Street 290,854 262,359

Depreciation Exp. AS 38,779 37,646Insurance Auckland Street 16,055 13,982Interest Expense AS 43,896 56,713Land Tax - Auckland St 6,462 6,700Other Expenses AS 0 1,003R&M Auckland Street 52,979 36,669Rates & Water Auckland St 19,681 13,084Total Direct Costs 177,852 165,797

Total Profit/(Loss) - Auckland Street 113,002 96,562

Direct Costs

Club Bega - Other Income

Stratum - Sapphire MarketplaceIncome - Stratum

Direct Costs

Income - Auckland StreetAuckland Street

APPENDIX B - PAGE 7

2019 2018



Operating Profit/(Loss) - Tarraganda (104,648) (107,522)

Operating Profit/(Loss) - Club Bega 189,664 209,668

Operating Profit/(Loss) - Stratum 105,682 41,816

Operating Profit/(Loss) - Auckland Street 113,002 96,562

Total Operating Profit/(Loss) 303,700 240,523

Profit/(Loss) Summary

APPENDIX B - PAGE 8

L I M I T E D

MORTALITY & RELIEF FUND ABN 86 681 129 988

APPENDIX C - BEGA RSL CLUB LIMITED MORTALITY & RELIEF FUND The statements below have been extracted from the full financial statements of the Bega RSL Club Limited Mortality & Relief Fund. The full financial statements are available to members of the fund upon request.

INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2019 2019 2018 Income: Interest 17,690.83 19,557.44 Subscriptions 6,590.00 7,020.00 ------------------- ------------------- 24,280.83 26,577.44 ------------------- ------------------- Expenses: Accountancy fees 1,259.50 2,464.00 Audit fee 2,300.00 2,361.50 Bank charges -- 192.34 Mortality payments 26,400.00 25,000.00 ------------------- ------------------- 29,959.50 30,017.84 ------------------- ------------------- Operating (Loss) for the Year (5,678.67) (3,440.40) ------------------- ------------------- Income tax relating to operating (Loss) (159.90) -- ------------------- ------------------- (Loss) after income tax for the year (5,838.57) (3,440.40) =========== ===========

BALANCE SHEET AS AT 31 DECEMBER 2019

Current Assets General Bank Account 84,157.95 53,643.79 Online Bank Account 1,008.03 1,008.03 Loan to Bega RSL Club Limited 36,000.00 36,000.00 Accrued Interest 1,166.67 -- ------------------- ------------------- TOTAL CURRENT ASSETS 122,332.65 90,651.82 ------------------- ------------------- Non-Current Assets Loan to Bega RSL Club Limited 568,000.00 604,000.00 ------------------- ------------------- TOTAL NON-CURRENT ASSETS 568,000.00 604,000.00 ------------------- ------------------ TOTAL ASSETS 690,332.65 694,651.82 ------------------- ------------------- Current Liabilities Accrued charges 4,359.50 3,000.00 Income Tax Payable 159.90 -- ------------------- ------------------- TOTAL LIABILITIES 4,519.40 3,000.00 ------------------- ------------------- NET ASSETS 685,813.25 691,651.82 =========== =========== EQUITY Opening Accumulated Funds 691,651.82 695,092.22 (Loss) for Year (5,838.57) (3,440.40) ------------------- ------------------- Accumulated Funds as at 31 December 2019 685,813.25 691,651.82 =========== ===========

L I M I T E D (ABN 97 001 011 383)

APPENDIX D

DONATIONS AND SPONSORSHIP

Organisations and persons supported throughout the year included: Bemboka Show Society Inc

Bega High School Bega Men's Golf Committee

Candelo Karate Dojo Inc Bega Sub-Branch

7th Light Horse Bemboka Troop Sapphire Coast Turf Club Cobargo District Museum Bega Showjumping Club Candelo AH & DF Ass

Bega Devils Bega Squash Club

Bega RSL Sub Branch Bega District Netball ass

H Peterson Bega Valley Motorcycle Expo

Cobargo P & C Ass Bemboka Public School

Bega Men's Bowls Committee FSC Student Gardeners Convergence 2019

Bega Hospital Auxiliary Bega Ladies Golf Committee

1st Cobargo Scout Group Bega Men's Shed

Bega Senior Citizens Bega Valley Archers

Bega Valley Evening VIEW Club Bega Gallery

Span Bemboka Sports, Social and Rec Club

Bermagui & District Lions Club Cobargo School of Arts Hall Committee

Bermagui Men's Shed Cobargo CWA

Bega CWA FSC Family Support Services

FliNG Physical Theatre Women’s Resource Centre St Vincent De Paul Bega

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