HOLIDAY CONCEPTS GROUP Holiday Concepts Corp Pty Ltd ABN 84 007 146 367

10 Dover Street, Cremorne VIC 3121 PO Box 2287, Richmond, Victoria 3121 Australia

phone: 03 9243 9480 facsimile: 03 9243 9498 email: info@holidayconcepts.com.au web: www.holidayconcepts.com.au

1st October 2019 Dear Member Re: Lakeside Numurkah Country Club Limited

Please find enclosed herewith: -

1. Annual Accounts for year ended 30/06/2019. 2. Budget for year ended 30/06/2020.

2019 Financial Year In the 2019 financial year, Lakeside Numurkah Country Club Limited spent $231,607.00 on Refurbishment/Improvements. Another entity that owns nine (9) units at the resort contributed $40,000.00, so the net figure in the accounts is $191,607.00. Attached is a list which displays how this money was spent. Listed below are the other major variances in income/expenditure for the 2019 financial year compared to budget. Category Actual Budget Comments Net GST Adjustment $17,059 $0.00 Bonus Time & On-site Management

Fee income are still taxable supplies. Accordingly, where appropriate, a net adjustment was made to recover input tax credits relating to these supplies that were remitted to the ATO.

Onsite Management Fee Income $236,723 $249,686 The running expenses for the units

another entity owns at Lakeside Numurkah were not as much as budgeted, therefore Lakeside Numurkah did not need to be reimbursed as much.

Profit on sale of non current assets $1,444 $0.00 Sale of the resort bobcat. Cleaning Wages $202,037 $225,493 Occupancy of units was not 100%. Electricity $98,810 $122,000 The electricity supplier is not doing

enough actual reads of the resort meters.

They are just estimating the power usage so we are

not getting an accurate cost of electricity expenditure at the moment. We have budgeted $120,000.00 for the 2020 financial year.

Gas $28,726 $33,500 Over budgeted. Annual Leave Provision ($18) $4,880 More resort staff took annual leave

during the 2019 financial year which reduced the annual leave provision.

Long Service Leave Provision $6,889 $1,536 More staff qualified for LSL during the

2019 financial year so provision was made.

2020 Financial Year

The Maintenance Fee for the 2020 calendar year should be struck at $770.00. This $10.00 increase is required to cover the increase in the normal every day running expenses of the Resort. We are also again proposing a $50.00 Maintenance Refurbishment Fee (Special Levy) per

week owned, as detailed in my letter to members dated the 1st July 2014. Like last year, the Maintenance Refurbishment Fee (Special Levy) will be invoiced each and every year with the Annual Maintenance Fee. In the 2020 financial year, Lakeside Numurkah Country Club Limited proposes to spend $250,000.00 on Resort Refurbishment/Improvements. The Club will receive $46,875.00 reimbursement from another entity that owns nine (9) units at the resort. This will result in a net figure of $203,125.00 being spent on Resort Refurbishment/Improvements. The $250,000.00 will be spent on:-

• Block out & screen pull down blinds on all windows in units 40-59.

• Timber lining of walls in unit 23.

• Repairs & replacement of rotten timberwork & rusted gutters on eaves & posts outside of some units & painting of the new timberwork.

• Repaint as well as new kitchen, tiled flooring, carpet & in units 22 & 23.

• Upgrade both bathrooms in unit 54.

• Underpinning of units 42, 56 & one (1) other unit.

• Paint architraves & skirting boards in unit 27.

• Whitegoods-Dishwashers, microwaves, washing machines, refrigerators, clothes dryers, cooktops (if needed).

• Appliances-Reverse cycle air conditioners, televisions & hot water services (if needed).

• Complete upgrade of main BBQ area. ie. painting, electrical works & new lighting, new concrete slab & posts.

A detailed list will be provided in the 2020 accounts to display how all refurbishment monies were spent. At the end of the 2020 financial year, I forecast Lakeside Numurkah Country Club Limited will have a retained profit of $229,910.00. Yours faithfully, Lakeside Numurkah Country Club Limited A.C.N. 006 359 404

Derek Reynolds DIRECTOR

Lakeside Numurkah Country Club Limited-Refurbishment/Improvements

Budget For Year Ended 30/06/2019Units

Purchase of more quilts, protectors, bed runners &

cushions for all 48 units $6,524.10

Underpinning of unit 13 $19,751.00

Blockout & screen pull down blinds on all windows in

units 22, 23, 26, & 29-37 $39,270.00Repair & replacement of rotten timberwork & rusted

gutters on eaves and posts outside of units &

painting of the new timberwork $26,153.63

Repair & replace broken tiles & mortar on units 2, 5,

7, 8, 22 & 23 $6,500.00

New ramp & railing for disabled unit (unit 51) $4,519.00New kitchen cabinets & benchtops, tiled flooring,

carpet, paint brick walls & refurbish bathrooms in

units 7 & 8 $65,085.29

Paint architraves & skirting boards in unit 27 $1,540.00

Upgrade both bathrooms in unit 56 $13,412.74

Whitegoods

Refrigerator x 2 $1,321.00

Clothes Dryer x 1 $339.00

Convection microwave x 2 $542.00

Washing machine x 1 $630.00

Dishwasher x 1 $484.00

Television x 10 $3,886.00

Appliances

Hot water service x 2 $1,847.60

Air conditioner x 3 $9,042.00

Pool & Complex

Raypak heater for outdoor pool $6,160.00

New security camera's for resort $17,200.16

Pull down all weather Blinds for main BBQ area $699.48

Grounds

Concrete slab on new BBQ area outside units 24 &

25 $2,700.00

Repair concrete pathways around resort $4,000.00

Sub Total $231,607.00

Less other entities share of

Refurbishment $40,000.00

Total $191,607.00

ActualTotal 2018/2019

IncomeAnnual Maintenance Fees 753,920 767,690 1,521,610 1,491,320 Maintenance Refurbishment Fees - 99,700 99,700 99,200 Bonus Time 20,450 20,450 40,900 42,870 Commission Income - - - - On-Site Management Fees 128,324 128,324 256,648 236,723 Interest Received 8,250 8,250 16,500 17,566 Bus Income 1,000 1,000 2,000 2,027 Sundry Income - - - 164 Outside Activities Income - - - 53 Hospitality Income 10,250 10,250 20,500 20,567 GST Adjustment - - - 17,060 Rounding - - - Loss/profit on Sale of Non-Current Asset - - - 1,444

922,194 1,035,664 1,957,858 1,928,994 Less: Variable Operating ExpensesActivities Officer 6,711 6,712 13,423 10,947 Bus Expenses 1,000 1,000 2,000 1,923 Cleaning Wages 110,264 110,264 220,528 202,037 Cleaning Materials 8,500 8,500 17,000 14,772 Electricity 60,000 60,000 120,000 98,810 Gas 16,500 16,500 33,000 28,726 Ground Upkeep 26,000 26,000 52,000 49,302 Ground Wages 80,998 80,998 161,996 148,128 Hospitality 15,500 15,500 31,000 30,410 Laundry 32,500 32,500 65,000 59,449 Outside Activities 2,250 2,250 4,500 4,277 Pay TV 12,000 12,000 24,000 22,835 Pool & Complex 23,500 23,500 47,000 44,548 Telephone 3,500 3,500 7,000 6,002 Vehicle Running Costs 10,500 10,500 21,000 20,705 Villa Upkeep 28,500 28,500 57,000 56,350 Wast Disposal/Pest Control 9,250 9,250 18,500 17,284 Total Variable Operating Expenses 447,473 447,474 894,947 816,505

474,721 588,190 1,062,911 1,112,489 Less: Fixed and Financial ExpensesAnnual General Meeting 1,350 1,350 2,700 2,272 ASIC Fees 700 700 1,400 1,370 Audit & Accountancy 11,700 11,700 23,400 22,950 Provision for Annual Leave 2,350 2,350 4,700 (18) Bank Charges 5,500 5,500 11,000 10,257 Central Administration 32,713 32,713 65,426 63,014 Computer Expenses 2,500 2,500 5,000 4,474 Secretarial Fees 6,017 6,017 12,034 12,034 Depreciation 9,402 9,401 18,803 16,926 Group Management Fees 62,198 63,335 125,533 123,065 Insurance 22,000 22,000 44,000 39,205 Interest Paid - - 10 Long Service Leave Provision 1,160 1,160 2,320 6,889 Management & Office Salaries 80,113 80,113 160,226 151,110 Manager's Training 2,000 2,000 4,000 5,341 Member Services 84,902 84,901 169,803 164,858 Newsletter 250 250 500 82 Photocopier Lease 1,250 1,250 2,500 2,243 Printing, Postage & Stationery 3,100 3,100 6,200 6,134 Rates & Taxes 107,500 107,500 215,000 207,801 Security Costs 4,000 4,000 8,000 7,260 Staff Uniforms 1,500 1,500 3,000 2,547 Sundry Expenses 2,500 2,500 5,000 4,260 Superannuation Contributions 24,000 24,000 48,000 47,392 Workcover Claims - - - 453 Workcover 6,252 6,251 12,503 12,778 Total Fixed and Financial Expenses 474,957 476,091 951,048 914,707

(236) 112,099 111,863 197,782 Other ExpensesResort Refurbishment 125,000 125,000 250,000 231,607 Less Resort Vacation Trust Share (23,438) (23,437) (46,875) (40,000) Total Other Expenses 101,562 101,563 203,125 191,607 Operating Surplus/(Deficit) Before Tax (101,798) 10,536 (91,262) 6,175 Income Tax Expense - - - - Operating Surplus/(Deficit) After Tax (101,798) 10,536 (91,262) 6,175

Retained Profits at the Beginning of the Year 321,172 314,997 Retained Profits at the End of the Year 229,910 321,172

Lakeside Numurkah Country Club LtdA C N 006 356 404

Budget for the Year Ended 30th June 2020

6 Months EndedDec-19

6 Months EndedJun-20