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Newcastle University Sport ACN 096 090 372

Annual Financial Report

for the Financial Year Ended 31 December 2017


Annual Financial Report for the Financial Year Ended 31 December 2017

Page

Financial Statements Directors' Report 1 Auditor's Independence Declaration 5 Independent Auditor's Report 6 Directors' Declaration 8 Statement of Profit or Loss and Other Comprehensive Income 9 Statement of Financial Position 10 Statement of Changes in Equity 11 Statement of Cash Flows 12 Notes to the Financial Statements 13


Directors' Report 31 December 2017

1

Your directors present their report on Newcastle University Sport (NUsport) for the financial year ended 31 December 2017.

1. General Information

Directors

The names of the directors in office at any time during, or since the end of the year are listed below. The number of directors' meetings held in the year and the number of meetings attended by each director while holding office in the Company during the year are also listed below:

Names Appointed/Resigned Board Meeting Attendance 2017 Ms Judith Alexander 5/5 Mr Tim Osborn 4/5 Prof Steven Fityus Mr Alex Hambly Mr Taylor Johnson Mr Joshua Manvell Ms Gabriella Sainsbury Prof Liz Burd Ms Dianne Allen Mr Derek Kinchela Mr Dominic May Mr Samuel Stephens

Resigned 26 February 2017 Resigned 26 February 2017

Resigned 19 January 2017 Appointed 27 March 2017

Resigned 4 December 2017 Appointed 24 May 2017

5/5

2/5 5/5 4/5 4/5

3/5

4/4

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 Newcastle University Sport during the financial year was the provision of sporting and recreational facilities and services.

No significant changes in the nature of the Company's activity occurred during the financial year.

2. Business review

Operating results

The loss of the Company after providing for income tax amounted to $ (69,610) (2016: profit of $190,779).

Dividends paid or declared

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made as the Company's constitution precludes the payment of dividends.

Newcastle University SportACN 096 090 372

Directors' Report31 December 2017

2. Business review

2

Information on Directors

The particulars of the qualifications, experience and special responsibilities of each Director in office during the 2017 year:

Ms Judith Alexander (Chair)

Mr Tim Osborn (Deputy Chair).

Bachelor of Laws (Newcastle); Bachelor of Business (Newcastle); Admitted to practice as a legal practitioner in the Supreme Court of NSW and in the High Court of Australia; Member of the Newcastle Law Society; Member of the NSW Law Society; Managing Director of Osborn Law and Director of the Nat Cook Live Out Loud Foundation.

Professor Stephen Fityus

Bachelor of Engineering (Hons) (Newcastle); B.Sc., PhD (Newcastle); Professor in Geotechnical Engineering in the School of Engineering; Life Member of Newcastle University Sport; Former Head of Discipline of Civil, Surveying & Environmental Engineering at The University of Newcastle (2008-2010); Principal Researcher in the Priority Research Centre for Geotechnical & Materials Modelling; Former elected member and Vice-President of Academic Senate (representing the School of Engineering); Former Chairman of the Newcastle Chapter of the Australian Geomechanics Society (2008-2009) and National Treasurer of the Australian Geomechanics Society (2016-); Assistant Dean (Research), Faculty of Engineering & Built Environment (2014-); Member Catholic Schools Committee, Maitland- Newcastle Diocese (2014-).

Mr Joshua Manvell

Currently studying Bachelor of Medicine, University of Newcastle; 2011 Bachelor of Physiotherapy (HONS I, University Medal), University of Newcastle; Physiotherapist, NU Moves Physiotherapy, Newcastle; Casual Lecturer, University of Newcastle; Physiotherapist, NSW Men's Hockey and University of Newcastle Rugby Club; Former Vice-President, NSW Branch, Australian Physiotherapy Association (APA); Past President, National Student Group, Australian Physiotherapy Association; current Australian Medical Students Association member; Musculoskeletal Physiotherapy Australian member; Sports Physiotherapy Australian member; 2008-13 Regional Representative, Newcastle Cricket, Soccer, Baseball and Men's Softball Teams, Sports Medicine Australia Lecturer and Vice President Sports and Exercise Medicine Student Association.

Ms Gabriella Sainsbury (Company Secretary)

Master of Applied Law (Commercial Transactions) (Collaw), Bachelor of Commerce (Newcastle); Bachelor of Laws (Newcastle); Admitted to practice as a legal practitioner in the Supreme Court of NSW and High Court of Australia; Graduate of the Australian Institute of Company Directors; Blue (The University of Newcastle); Colour (The University of Newcastle); Vice President University of Newcastle Sports Laureates Association 2014 - Present and Secretary 2013; President of Newcastle University Water Polo Club 2011 - 2013; Australian University Games Green & Gold Team 2010, 2011, 2012 & 2013; University of Newcastle Australian University Games Captain 2012 & 2013


Directors' Report 31 December 2017

2. Business review

3

Information on Directors (cont'd)

Professor Liz Burd

Bachelor of Education (Hons) (Worcester College of Higher Education); Master of Science Human Computer Interaction (University of York); D.Phil. Risk Management (University of York); Ph.D. Software Maintenance (University of Durham).

Professor Burd joined the University of Newcastle in 2013 as Pro Vice-Chancellor (Learning and Teaching). With an international reputation in the field of education, Professor Burd is particularly recognised for her pioneering research into Technology Enhanced Learning.

Professor Burd has chaired a number of high profile international committees including that of Vice President of Educational Activities for the IEEE Computer Society. She has received 5 University awards for Enhancing the Learning and Teaching experience, 2 awards from the Higher Education Academy Information and Computer Sciences Subject Network, a National Teaching Fellowship and an international teaching award from the Institute of Electrical and Electronic Engineers, and has received three nominations for THE Awards. Professor Burd holds memberships with the Fellow Higher Education Academy, is a Senior member of the IEEE and IEEE Computer Society, and has held a number of research collaborations with IBM, Microsoft, British Telecommunication, BAe and Logica.

Ms Dianne Allen

Bachelor of Commerce (Newcastle); Fellow of the Institute of Chartered Accountants Australia & New Zealand;

Graduate of the Australian Institute of Company Directors; Registered Tax Agent; Deputy Chancellor of the University of Newcastle; Director - Lake Macquarie Economic Development Company Ltd; Chair of Audit, Risk and Improvement Committee - Lake Macquarie City Council; Member of Audit and Risk Committee - Hunter New England Local Health District; Board member of Castle Personnel Services Ltd; Former director of UON Services Ltd, University of Newcastle Union Ltd, St John of God Family Services Ltd and Mercy Community Services Ltd; Former principal of Dianne Allen Chartered Accountants.

Dominic May

Dominic is currently in his final year of a Bachelor of Business/Bachelor of Innovation and Entrepreneurship (Tourism Management/Leadership and Management) at the University of Newcastle. Dominic currently sits on the Faculty of Business and Law Board as an undergraduate representative as well as on the Student Advisory Council. Dominic has previously been the President of the University of Newcastle Business and Commerce Association.

Samuel Stephens

Bachelor of Medicine at UON (currently completed 3rd year); Bachelor of Physiotherapy at UON (2012-2014, completed 3 years); UON Tennis Club President (2015 - current); UON Tennis Club Vice President (2014 - 2015); UON Tennis Club Community Liaison (2013 - 2014); UON University Games Tennis Captain (2013 - 2017); UON Faculty of Health and Medicine - Discipline of Anatomy; Anatomy Laboratory Demonstrator (2016 - current) and UON Faculty of Health and Medicine - Faculty Scholar Program Member (2015 - current).

Corporations Act 2001

PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.For office locations visit www.pkf.com.au

Sydney

Level 8, 1 O’Connell StreetSydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001

p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited PartnershipABN 91 850 861 839

Liability limited by a scheme approved under Professional Standards Legislation

Newcastle

755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309

p +61 2 4962 2688 f +61 2 4962 3245

Australian Charities and Not-for-Profits Commission (ACNC) Act 2012

Australian Charities and Not-for-profits Commission Regulation 2013.

Auditor’s Responsibilities for the Audit of the Financial Reportustralian Charities and

Not-for-profits Commission Act 2012Code of Ethics for Professional Accountants

PKF(NS) Audit & Assurance Limited Partnership is a member firm of the PKF International Limited family of legally independent firms and does not accept any responsibility or liability for the actions or inactions of any individual member or correspondent firm or firms.For office locations visit www.pkf.com.au

Sydney

Level 8, 1 O’Connell StreetSydney NSW 2000 Australia GPO Box 5446 Sydney NSW 2001

p +61 2 8346 6000 f +61 2 8346 6099

PKF(NS) Audit & Assurance Limited PartnershipABN 91 850 861 839

Liability limited by a scheme approved under Professional Standards Legislation

Newcastle

755 Hunter Street Newcastle West NSW 2302 Australia PO Box 2368 Dangar NSW 2309

p +61 2 4962 2688 f +61 2 4962 3245

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Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2017

The accompanying notes form part of these financial statements. 9

Note 2017

$ 2016

$ Revenue 2 6,225,980 6,347,654 Employee benefits expense 2 (3,761,801) (3,766,623) Depreciation and amortisation expense 2 (651,821) (711,532) Forum venues and facilities running expense 2 (1,002,154) (818,557) Raw materials and consumables used (87,843) (82,672) Finance costs and merchant fees 2 (120,016) (177,550) Advertising expense (96,014) (103,005) Representative team and affiliated club expense (132,460) (113,797) Other expenses (443,481) (383,139)

(Loss)/profit before income tax (69,610) 190,779 Income tax expense 1(h) - -

(Loss)/profit after income tax (69,610) 190,779

Other comprehensive income - -

Total comprehensive income (69,610) 190,779


Statement of Financial Position As At 31 December 2017


Note 2017

$ 2016

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 18(a) 1,537,921 1,278,645 Trade and other receivables 5 137,283 116,903 Inventories 6 77,536 113,665 Other assets 7 45,991 85,561

TOTAL CURRENT ASSETS 1,798,731 1,594,774 NON-CURRENT ASSETS

Property, plant and equipment 8 11,182,525 11,118,557 TOTAL NON-CURRENT ASSETS 11,182,525 11,118,557 TOTAL ASSETS 12,981,256 12,713,331

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 862,338 775,648 Borrowings 10 179,252 161,703 Provisions 11 215,836 219,742 TOTAL CURRENT LIABILITIES 1,257,426 1,157,093 NON-CURRENT LIABILITIES

Borrowings 10 707,113 470,564 Provisions 11 54,355 53,702 TOTAL NON-CURRENT LIABILITIES 761,468 524,266 TOTAL LIABILITIES 2,018,894 1,681,359 NET ASSETS 10,962,362 11,031,972

EQUITY

Retained earnings 12 10,962,362 11,031,972 TOTAL EQUITY 10,962,362 11,031,972


Statement of Changes in Equity For the Year Ended 31 December 2017


2017

Ordinary Shares

$

Retained Earnings

$ Total

$ Balance at 1 January 2017 - 11,031,972 11,031,972 Loss for the year - (69,610) (69,610)

Balance at 31 December 2017 - 10,962,362 10,962,362 2016

Ordinary Shares

$

Retained Earnings

$ Total

$ Balance at 1 January 2016 - 10,841,193 10,841,193 Profit for the year - 190,779 190,779

Balance at 31 December 2016 - 11,031,972 11,031,972


Statement of Cash Flows For the Year Ended 31 December 2017


Note 2017

$ 2016

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 5,845,448 6,009,014 Receipts from service level agreements 946,000 951,500 Payments to suppliers and employees (5,982,021) (5,890,686) Interest received 18,641 16,910 Interest paid (120,016) (177,550) Net cash provided by operating activities 18(b) 708,052 909,188

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sale of plant and equipment 16,461 31,986 Purchase of property, plant and equipment (291,687) (203,385) Net cash used in investing activities (275,226) (171,399)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of borrowings (173,550) (228,813) Net cash used in financing activities (173,550) (228,813) Net increase/(decrease) in cash and cash equivalents held 259,276 508,976 Cash and cash equivalents at beginning of year 1,278,645 769,669 Cash and cash equivalents at end of financial year 18(a) 1,537,921 1,278,645


Notes to the Financial Statements For the Year Ended 31 December 2017

13

1 Summary of Significant Accounting Policies

General Information

The financial report covers Newcastle University Sport as an individual entity. Newcastle University Sport is a Company limited by guarantee, incorporated and domiciled in Australia.

The financial report is a general purpose report that has been prepared in accordance with the Corporations Act 2001, Australian Charities and Not-for-Profit Commission (ACNC) Act 2012, Australia Accounting Standards and Interpretations and complies with other requirements of the law. Accounting Standards include Australian equivalents to International Financial Reporting Standards ('A-IFRS'). Compliance with A-IFRS ensures that the Company's financial statements and notes of the Company comply with International Financial Reporting Standards ('A-IFRS').

Basis of Preparation

This financial report has been prepared on an accruals basis and is based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The following significant accounting policies have been adopted in the preparation and presentation of the financial report:

(a) 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 which are convertible to a known amount of cash and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(b) 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 settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. These cashflows are discounted using market yields on national corporate bonds with terms to maturity that match the expected timing of cashflows.

(c) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax 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 the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

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.

(d) Inventories

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




14

(e) Leased assets

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

(f) Plant and equipment

Depreciation is provided on plant and equipment on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method is reviewed at the end of each annual reporting period.

The depreciation rates used for each class of depreciable assets are shown below: Class of Fixed Asset Depreciation rate Plant and Equipment 10% - 33% Leasehold improvements shorter of life of the lease or useful life

(g) Impairment of assets

At each reporting date, the Company 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 an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income.

(h) Income tax

The Company is exempt from income tax under Subdivision 50-B of the Income Tax Assessment Act 1997. Accordingly no provision for income tax is required.

(i) Payables

Trade payables and other accounts payable are recognised when the Company becomes obliged to make future payments resulting from the purchase of goods and services.

(j) 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. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows.




15

(k) Revenue recognition

Service fee revenue is recognised on a basis which reflects the stage of completion of the contract performed.

Revenue from the sale of goods and disposal of other assets is recognised when the entity has passed control of the goods or other assets to the buyer.

(l) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit/ (loss) in the period in which they are incurred.

(m) New accounting standards for application in future periods The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Company has decided against early adoption of these Standards. The following summarises those future requirements, and their impact on the Company. AASB 9: Financial Instruments and associated Amending Standards (applicable for annual reporting periods commencing on or after 1 January 2018). This standard is not expected to have a significant impact on the Company's financial statements. AASB 15: Revenue from contracts with customers and associated Amending Standards (applicable for annual reporting periods commencing on or after 1 January 2018). This standard is not expected to have a significant impact on the Company's financial statements. AASB 16: Leases (applicable for annual reporting periods commencing on or after 1 January 2019). Whilst the impact of AASB 16 has not yet been quantified, the Company currently has operating leases as detailed in note 14(c) which will be recorded in the statement of financial position in future periods.




16

(n) Critical accounting estimates and judgements

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.

The significant estimates and judgements made have been described below.

Estimation of useful lives

The Company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

Long service leave provision

As discussed in Note 1(b), the liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

Provision for doubtful debts

The valuation of provision for doubtful debts is estimated by considering the ageing receivables, communication with the debtors and prior history. The directors determined that nil provision for impairment of receivables was an appropriate provision based on aged receivables and industry debtor days.



17

2 Result for the Year

The following items of revenue and expense items are relevant in explaining the financial performance:

2017 $

2016 $

Membership and hire fees 5,039,471 5,102,986 Service level agreement revenue 860,000 865,000 Sport & recreation course revenue 10,296 17,957 Personal training revenue 57,538 122,160 Merchandise sales 121,959 132,505 Rental income 52,953 25,557 Interest received 29,631 23,756 Other revenue 54,132 57,733

6,225,980 6,347,654 Employee benefits expense

3,761,801 3,766,623

Depreciation & amortisation expense 651,821 711,532 Forum venues & facilities running expense 1,002,154 818,557 Finance costs & merchant fees 120,016 177,550 5,535,792 5,474,262

Included in the operating result for the year ended 31 December 2017 was the depreciation and amortisation expense of $651,821 (2016: $711,532).

The depreciation and amortisation expense reflects the diminishing value of the Company's plant, equipment and leasehold improvements. The significant value of the leasehold improvements includes amounts contributed by Newcastle University Sport and its predecessors for the construction of major sporting and recreational infrastructure including The Forum Sports & Aquatic Centre, The Forum Health & Wellness Centre, sporting ovals and squash courts.

The following analysis shows the Company's result should the depreciation and amortisation expense be excluded from the accounting result:

2017 $

2016 $

Accounting (loss)/profit (69,610) 190,779 Plus: Depreciation of property, plant and equipment 651,821 711,532

582,211 902,311

The directors consider that the exclusion of depreciation and amortisation provides a better reflection of trading performance in light of the circumstances noted above.



18

3 Remuneration of Directors

All directors of the Company act in honorary capacity and receive no remuneration from the company in respect of their directorship.

4 Auditor's Remuneration

2017 $

2016 $

Remuneration of the auditor of the company for:

Audit of the financial report 23,500 23,500

5 Trade and Other Receivables Trade receivables 137,283 116,903

137,283 116,903

6 Inventories Merchandise 50,948 72,604 Other inventories 26,588 41,061

77,536 113,665

7 Other Current Assets Prepayments and deposits 45,991 85,561



19

8 Property, plant and equipment

2017 $

2016 $

Capital works in progress

At cost 157,757 59,316

Total capital works in progress 157,757 59,316

Plant and equipment

At cost 2,734,114 2,258,649 Accumulated depreciation (2,032,349) (1,913,606)

Total plant and equipment 701,765 345,043

Leasehold improvements

At cost 18,491,882 18,420,995 Accumulated depreciation (8,168,879) (7,706,797)

Total leasehold improvements 10,323,003 10,714,198

Total property, plant and equipment 11,182,525 11,118,557

(a) Movements in carrying amounts of property, plant and equipment

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

Capital Works in Progress

$

Plant and Equipment

$

Leasehold Improvements

$ Total

$ Balance at the beginning of year at 1 January 2017 59,316 345,043 10,714,198 11,118,557 Additions 157,757 586,182 70,886 814,825 Disposals (59,316) (39,711) - (99,027) Depreciation expense - (189,749) (462,081) (651,830)

Balance at 31 December 2017 157,757 701,765 10,323,003 11,182,525

Balance at the beginning of year at 1 January 2016 - 516,279 11,146,207 11,662,486 Additions 59,316 111,675 32,394 203,385 Disposals - (35,782) - (35,782) Depreciation expense - (247,129) (464,403) (711,532)

Balance at 31 December 2016 59,316 345,043 10,714,198 11,118,557



20

9 Trade and Other Payables

2017 $

2016 $

Unsecured liabilities

Deposits collected 19,476 26,976 Trade payables 411,160 298,284 Sundry payables and accrued expenses 130,230 135,755 Unexpired term memberships (i) 301,472 314,633

862,338 775,648

(i) Unexpired term memberships reflects the remaining value of term memberships paid in advance and in the normal course of business, these amounts will not be required to be repaid.

10 Borrowings

2017 $

2016 $

CURRENT

Unsecured liabilities:

Loan from the University of Newcastle 78,869 74,007

Secured liabilities:

Lease liability secured (i) 100,383 87,696

179,252 161,703

NON-CURRENT

Unsecured liabilities:

Loan from the University of Newcastle 370,812 449,681

Secured liabilities:

Lease liability secured (i) 336,301 20,883

707,113 470,564

(i) Secured over the assets leased.

11 Provisions Current employee entitlements 215,836 219,742 Non-current employee entitlements 54,355 53,702

270,191 273,444



21

12 Retained Earnings

2017 $

2016 $

Balance at the beginning of financial year

11,031,972 10,841,193 Net (loss)/profit attributable to the members of the entity (69,610) 190,779

Retained earnings at end of the financial year 10,962,362 11,031,972

13 Members' Guarantee

The Company is limited by guarantee. The constitution states that each member is required to contribute a maximum of $1 each towards meeting any outstandings and obligations of the Company on winding up.

14 Capital and Leasing Commitments

(a) Finance lease commitments as the lessee

The finance lease commitments relate to the acquisition by NUsport of gymnasium equipment and motor vehicles.

2017 $

2016 $

Minimum lease payments:

- no later than one year 134,885 92,517 - between 12 months and 5 years 393,185 21,361 Minimum lease payments 528,070 113,878 Less: future finance changes (91,386) (5,299) Lease Liability 436,684 108,579

Included in the financial statements as:

Current lease liability 100,383 87,696 Non-current lease liability 336,301 20,883

436,684 108,579



14 Capital and Leasing Commitments

22

(b) Operating lease commitments as the lessor

Newcastle University Sport's lessor leasing arrangements in the current year relate to:

- Lease of premises to a Physiotherapy practice. Term of lease from 1 September 2013 to 31 December 2018.

- Lease of the Forum Cafe premises. Term of lease from 1 November 2016 to 31 December 2019 with an option to renew for a further four years.

2017 $

2016 $

Minimum lease receipts:

- no later than one year 54,696 54,696 - between 12 months and 5 years 32,700 87,396

87,396 142,092

(c) Operating Lease Commitments - as the lessee

Newcastle University Sport's lessee leasing arrangements relate to:

- Lease of a photocopier with a term of 5 years commencing from 6 November 2014.

- Lease of digital signage equipment with a term of 5 years commencing from January 2017.

2017 $

2016 $

Payable: minimum lease payments

- no later than 12 months 38,991 38,991 - between 12 months and 5 years 52,502 91,493

91,493 130,484

15 Commitments for expenditure

There were no commitments for expenditure in respect of the Company other than those disclosed in Note 14.

16 Contingent Liabilities and Contingent Assets

The directors are not aware of any contingent assets or liabilities existing in respect to the Company at the date of signing this report.



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17 Related Party Transactions

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transaction with related parties are detailed as follows:

(a) The University of Newcastle

2017 $

2016 $

Revenue from hire of facilities for academic use

85,290 76,123

SSAF funding received 860,000 865,000 Loans owing to The University of Newcastle 449,681 523,688 Payment to UoN for utilities and parking permits 405,111 379,309

(b) Osborn Law Pty Ltd

Tim Osborn is the Director of Osborn Law Pty Ltd and also the Deputy Chair of the NUsport Board of Directors. NUsport engage with Osborn Law Pty Ltd for legal services therefore giving rise to the following related party transactions:

2017 $

2016 $

Legal services provided

3,276 8,531

18 Cash Flow Information

(a) Reconciliation of cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows:

2017 $

2016 $

Cash and cash equivalents 1,537,921 1,278,645



18 Cash Flow Information

24

(b) Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2017 $

2016 $

Net (loss)/profit attributable to the members of the entity (69,610) 190,779 Cash flows excluded from profit attributable to operating activities

Depreciation 651,821 711,532 Net gain/(loss) on disposal of property, plant and equipment (12,915) 3,796 Changes in assets and liabilities

(Increase)/decrease in trade and other receivables (20,380) (6,800) (Increase)/decrease in inventories 36,129 (34,881) (Increase)/decrease in other assets 39,570 (29,137) Increase/(decrease) in trade and other payables 86,690 60,217 Increase/(decrease) in provisions (3,253) 13,682 Cashflow from operations 708,052 909,188

(c) Non-cash Financing and Investing Activities

During the financial year the Company acquired $427,648 of plant and equipment under finance lease (2016: Nil).

19 Segment information

The Company manages and operates sporting facilities and activities in Newcastle, New South Wales, Australia.

20 Financial Instruments

(a) Significant accounting policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect to each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to the financial statements.

(b) Net fair values

The aggregate net fair values of financial assets and financial liabilities both recognised and unrecognised at balance date are the values as disclosed in the statement of financial position and the notes to the financial statements.

(c) Credit risk

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognise financial assets is the carrying amount, net of any provision for doubtful debts, as disclosed in the statement of financial position and the notes to the financial statements.




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(d) Interest Rate Risk

The Company's exposure to interest rate risk, which is the risk that a financial instruments value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

Weighted Average Effective

Interest Rate Floating Interest

Rate Maturing within

1 Year Maturing 1 to 5

Years Maturing Over 5

Years Non-interest

Bearing Total

2017 %

2016 %

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

2017 $000

2016 $000

Financial Assets:

Cash and cash equivalents 2.16 2.10 1,538 1,279 - - - - - - - - 1,538 1,279 Receivables - - - - - - - - - - 137 117 137 117

Total Financial Assets 1,538 1,279 - - - - - - 137 117 1,675 1,396

Financial Liabilities:

Loan from UoN 6.38 6.38 - - 79 74 371 450 - - - - 450 524 Lease liabilities 7.31 4.44 - - 100 88 336 21 - - - - 436 109 Payables - - - - - - - - - - 862 776 862 776 Employee benefits - - - - - - - - - - 270 273 270 273

Total Financial Liabilities - - 179 162 707 471 - - 1,132 1,049 2,018 1,682




26

(e) Financing Facilities

2017 $

2016 $

Unsecured bank facility, reviewed annually and payable at-call:

Amount used - - Amount unused 250,000 250,000

21 Events After the Balance Date

There have not been any events subsequent to balance date which require separate disclosure in this report.

22 Company Details

Newcastle University of Sport is a Company limited by guarantee, incorporated and operating in Australia. The registered office of and principal place of business of the company is:

Newcastle University Sport c/- The University of Newcastle University Drive CALLAGHAN NSW 2308 Tel: (02) 4921 7001

newcastle university sport - theforum.org.au agm/newcastle... · 31-12-2017 · notes to the...

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