ANNUAL REPORT 2015 - 2016
OUR VISION
MAKING A DIFFERENCE FOR OUR COMMUNITY. 2
ANNUAL REPORT 2015 - 2016
CONTENTS
Key Developments
04
Associated Venues
22
Board of Directors
05
Financial Summary
23
President’s Report
06
Directors’ Report
24
CEO’s Report
08
Independent Auditors Declaration
26
Our Community
10
Statement of Profit or Loss
27
ClubGRANTS
11
Statement of Financial Position
28
Community Engagement
12
Statement of Changes in Equity
29
Community Awards
16
Statement of Cash Flows
29
Sustainability
17
Notes to the Financial Statements
30
Local Sports 18
Directors’ declaration
42
Our Volunteers 20
Independent Audit Report
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Our People 21 Bankstown District Sports Club Ltd A Company Limited by Guarantee 8 Greenfield Parade, Bankstown, NSW 2200 Mark Condi, Chief Executive Officer
T 02 9722 9888 F 02 9793 9355 ABN 88 000 243 916 BankstownSports.com
ANNUAL REPORT 2015 - 2016
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BANKSTOWNSPORTSCLUB
KEY DEVELOPMENTS
Lucky Cheng’s 2015/16 has been a huge year of growth and development for Bankstown Sports Club, with several new venues opening to the public and other new dining spaces currently under construction. Members and patrons are embracing the changes and overall, they are pleased to see we are upgrading their club to provide a bigger and better entertainment venue for them to enjoy. SAN CHURRO Chocolateria San Churro opened its doors in November 2015 and has been very well received. Serving a variety of traditional Spanish desserts, it is the ultimate destination for a sweet treat after a meal or a movie inside the club. LUCKY CHENG’S & PEKING SQUARE Lucky Cheng’s opened in December 2015, offering members and patrons a unique Asian dining experience. Open-plan kitchens allow diners to watch our chefs make hand-made noodles, dumplings and pancakes, in an authentic old-Shanghai noodle house setting. In the six months since it opened, Lucky Cheng’s has proved very popular with our patrons.
Chocolateria San Churro which will be called Peking Square. This will be a 300-seat venue, serving yum cha and an al a carte menu, with four private dining rooms which will be available for hire. It will also accommodate a tea house, which will serve traditional Chinese herbal teas. It is due to open in December 2016. RAINFOREST LOUNGE & BASEMENT BREWHOUSE We replaced the old, outdated layout of the bar in the Rainforest Lounge with a much more modern, classy and chic design. It is now more compact and improves our customer service capabilities, and features a large high-tech visual display on the back wall. A new staircase leading from the Rainforest Lounge to the Total Sports Bar below was also completed in December 2015, and work has begun to redevelop that venue into a new contemporary restaurant and bar called Basement Brewhouse. This new 200-seat venue will house its own microbrewery which will create a range of craft beers, and will feature a gourmet burger bar and delicatessen. It is due to open in November 2016.
Given the success of Lucky Cheng’s, construction is now underway on a much larger Asian dining precinct at the rear of the club,
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ANNUAL REPORT 2015 - 2016
Travelodge Bankstown THE THEATRE The Theatre at Bankstown Sports Club has been equipped with a big screen and state-ofthe-art projection and audio system to allow us to show popular and recent release movies for our members and patrons. We also opened a candy bar inside the venue, which serves popcorn, drinks and ice-cream, as well as alcoholic beverages. TRAVELODGE The expansion of the Travelodge Hotel Bankstown was completed ahead of schedule, with an additional 54 rooms opened for operation at the end of March, 2016. Renovations and upgrades to existing rooms were also undertaken to give the entire hotel a clean, fresh feel, and a new foyer and dedicated reception area was built to create a better experience for our members and patrons. FLINDERS CENTRE Preliminary works began on the new ninestorey commercial office tower on the corner of Restwell Street and Greenfield Parade which will be called Flinders Centre. It will provide A-Grade office space that meets the best environmental standards, which will be leased out to tenants. The building will also accommodate all of the club’s administrative offices.
BOARD OF DIRECTORS
John Murray
Richard Phillips
Vern Falconer
Alex Fulcher MBE, OAM
President
Vice-President
Director
Director
Jim Ronis
Martin Klumpp
Jim Hanna
Mark Condi
Director
Director
Director
Chief Executive Officer
ANNUAL REPORT 2015 - 2016
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PRESIDENT’S REPORT On behalf of the board of directors, I am pleased to present the 58th Annual Report for Bankstown Sports Club and its associated venues, for the financial year ended June 2016. It has been another highly successful year, with continued strong support from members and patrons, and the local community.
JOHN MURRAY PRESIDENT
We have exceeded expectations with customer service targets and corporate governance, while an expanding management structure has allowed us to grow and develop internally. We are in the midst of some very exciting building developments and investments, with an extremely positive outlook for the years ahead. ASSOCIATED VENUES Our associated venues have performed extremely well over the last financial year, thanks again to the support of members and patrons. Baulkham Hills Sports, Birrong Sports and Bankstown Sports Bowls have all returned a profit and we’re poised for another positive year ahead. We have also entered into a partnership with Greenacre Bowling and Recreation Club. The club has been struggling financially in recent years due to reduced patronage, so the Bankstown Sports Club board decided to step in and offer assistance.
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ANNUAL REPORT 2015 - 2016
CHAPLAINCY PROGRAM I am pleased to report, the Chaplaincy program that was set up at the club last year has been a huge success, with Chaplain Shane Mount providing support, advice and encouragement to members and patrons about a variety of issues, including addiction, physical and mental health problems, bereavement and relationship breakdowns. He has been stationed at the club as part of a partnership initiative between the Salvation Army and ClubsNSW, and a large cross-section of our members and patrons have benefitted from his services over the past 12 months. RECRUITMENT & PROMOTION Recruitment, training and internal promotion has been a big focus of the club this year. We are committed to hiring enthusiastic, dedicated and forward-thinking staff who we feel fit in with the direction we want to take our business in the years to come. We have run over 260 training courses for our employees over the past year to ensure they have the knowledge and skills required to fulfil their duties, and to look ahead to potential career progression within the organisation. SOCIAL RESPONSIBILITY Your club continues to wholeheartedly support 42 local sporting clubs and a variety of different community organisations, to provide assistance both physically and financially, when required. We have again contributed above and beyond our statutory obligations for ClubGRANTS in the local Bankstown area, with almost $2.27 million dollars going to some very worthwhile causes. Baulkham Hills Sports Club also contributed over $155,000 to deserving local organisations.
“OUR SUCCESS AND GROWTH OVER THE PAST YEAR WOULD NOT HAVE BEEN POSSIBLE WITHOUT THEIR PASSION AND LEADERSHIP.” IN CONCLUSION Your club has been undergoing some major renovations and upgrades over the past 12 months and I’m confident we are building a bigger and better club, to meet the needs of all of our members and patrons in the future. I would like to take this opportunity to thank our board of directors and CEO Mark Condi, for their immeasurable contribution to the club, and the local community. Their dedication to all four of our venues has been outstanding, and our success and growth over the past year would not have been possible without their passion and leadership.
ANNUAL REPORT 2015 - 2016
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CEO’S REPORT It’s been another year of growth, development and positive change for Bankstown Sports Club and our associated venues, thanks largely to the ongoing support and commitment from our members, patrons, local sporting groups, community organisations and our staff.
MARK CONDI CHIEF EXECUTIVE OFFICER
We have again recorded a positive financial result for year ended June 2016, even with the increased disruption during construction projects and upgrades, which gives me confidence that we, as a business, continue to head in the right direction. Thank you for your patience. CONSTRUCTION UPDATE Renovations have begun on several new venues inside the club with the Total Sports Bar being redeveloped into the new Basement Brewhouse, which will be open in November 2016, and Peking Square, which is set to be operational by December 2016. Details on both of these projects have been released over the past few months, with very positive feedback from staff, members and patrons. We are undertaking these upgrades to ensure our club continues to offer new, exciting and enticing entertainment and dining options. As a business, we recognise the need to grow and develop, and we’re confident these new venues will allow us to do that.
FLINDERS CENTRE Bankstown Sports Club is extremely proud to be associated with the development of the new Flinders Centre, which will provide contemporary, efficient and sustainable A-Grade office space for businesses looking to base themselves in one of the fastest growing areas of Sydney. Preliminary works have begun for the project which will be located immediately adjacent to the Club, and will feature 8 levels of office accommodation, as well as retail space on the ground floor. Every level will feature stateof-the-art, energy saving equipment design, technology selection and design strategies. GO WEST Bankstown Sports Club was a major sponsor of the 2016 GO WEST campaign, which is an annual event run by NewsCorp, and we hosted the Best of the West Gala Dinner in The Grand Ballroom in May. We rolled out the red carpet for 450 invited guests and welcomed some very special attendees including Prime Minister Malcolm Turnbull, Labor leader Bill Shorten, Federal Treasurer Scott Morrison and Premier Mike Baird. The event was developed two years ago to highlight all of the outstanding food, sport and community features in the western Sydney area, and to push local, state and federal governments for more commitment on infrastructure and spending in the region. There were a variety of different categories for people to vote on this year, and La Piazza won the Favourite Restaurant category for the Canterbury-Bankstown region.
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ANNUAL REPORT 2015 - 2016
SUSTAINABILITY We are pleased to continue on with our focus on sustainability, everything we do has a focus on sustainability, whether it be touchless taps, air-conditioning, water harvesting initiatives, LED lighting or even the packaging we sell. This year we have replaced 95% of the main clubs lighting to LED bulbs, which is expected to save us thousands each year in power consumption. We replaced electric heaters with gas heaters and upgraded our CCTV system recording hardware, which should reduce our power consumption by a further $30,000 per annum.
IN CONCLUSION To finish, I would sincerely like to thank our board of directors, our staff, members, patrons, and associated sporting clubs and community groups for your ongoing support this year. Without you, the improvements to the club and continued growth and development of our business would not have been possible. Our membership base surpassed 65,000 with weekly visitations up around 42,000, and we continue to be a positive presence in the local Bankstown area. I would like to congratulate General Manager Andrew Kelly and Operations Manager Michael Clancy for their outstanding contribution to the business, and to all of their support staff who work tirelessly to make this club the best it can be. Thank you to all of our front line staff for your enthusiasm and dedication to our cause. Our customer service standards have never been better.
ANNUAL REPORT 2015 - 2016
“OVERALL, 2015/16 HAS BEEN A POSITIVE YEAR OF GROWTH AND I LOOK FORWARD TO WHAT THE FUTURE HOLDS.�
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OUR COMMUNITY Bankstown Sports Club Group contributes to local communities every year by providing cash grants and a range of in-kind support.
BANKSTOWN SPORTS CLUB GROUP
DONATED 40% MORE TO THE COMMUNITY THAN THE REQUIRED CONTRIBUTION.*
SUMMARY TOTALS
CATEGORY 1
CATEGORY 2
CASH AND IN-KIND
CASH AND IN-KIND
$707,302.31
$1,716,727.80
GRAND TOTAL
$2,424,030.11 *ClubGRANTS is a state-wide government initiative whereby registered clubs which earn more than $1 million annually in gaming revenue must contribute a minimum of 2.25% to the community through grants meeting specific criteria. The figures on this page reflect Bankstown Sports Club Group’s contribution from 1 September 2015 to 31 August 2016.
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ANNUAL REPORT 2015 - 2016
ClubGRANTS recipients
ClubGRANTS CATEGORY 1 57%
Aged, disability or youth services
11%
Community nursing/therapy/mental health servies
10%
Neighbourhood centre/youth drop in activities
8%
Community transport services
5%
Family support/emergency or low cost accommodation
3%
Child protection/child care/early childhood health/child and family services
3%
Home and community care and disability services
2%
Community education programs
1%
Health promotion initiatives
CATEGORY 2 61%
Sport
16%
Community activities
9%
Club facilities
8%
Education
5%
Cultural activities
1%
Health/medical research
ANNUAL REPORT 2015 - 2016
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COMMUNITY ENGAGEMENT
Gwen and Charlie, Bankstown Dementia Carers’ Group
Archie the Elder Clown, Bankstown City Aged Care THE ELDER CLOWN AND LAUGHTER BOSS PROGRAM AT BANKSTOWN CITY AGED CARE (BCAC) The Elder Clown’s program has been introduced to aged care facilities by The Humour Foundation, to help ease the burden of dementia for those living with the disease, and for those caring for them. The program brings medicine and the arts together in a professional partnership, and addresses the psychosocial needs of residents in a very unique way. Elder Clowns aim to improve the quality of life for people living with dementia, they encourage positive interactions with others and bring happiness to what can sometimes be a very lonely and confusing time.
Bankstown Sports Club has been supporting BCAC for over 40 years and has supported the Elder Clown and Laughter Boss programs with a $100,000 donation, to improve the quality of life for over 100 residents living with dementia. The program delivers a cost-effective way for aged care facilities to bring smiles and laughter into their environment on a regular basis, and the entire facility benefits, from the residents to their families and staff. Performers are partnered with staff from host facilities who have been trained and endorsed.
With support from Bankstown Sports Club through the ClubGRANTS scheme, the group meets every week for lunch and some entertainment, providing a platform for social and mental support for carers, giving them an opportunity to talk to volunteers and organisers about any concerns they have, and to organise additional home care and other help when it’s needed.
Archie began working with Bankstown City Aged Care in 2016 and knows almost every resident by name already. He knows their likes and their dislikes, he shares stories with them and asks them for advice – all while dressed as a clown. Complete with red nose, novelty flowers and a bag of tricks, each week he visits a select number of patients who the staff feel need a bit of extra attention. Support this year: $100,000 Length of association: 44 years
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GIVING A LITTLE HOPE TO DEMENTIA CARERS Bankstown Dementia Carers’ Group is a volunteer organisation that provides peer support to carers who are looking after someone with dementia at home, in the Bankstown area, and organises regular social activities in the community. The group’s aim is to assist carers to cope with the inevitable changes that come with caring for someone with dementia, and to help introduce them to the service and health care systems they need to deal with along the way.
ANNUAL REPORT 2015 - 2016
Support this year: $13,000 Length of association: 5 years
Girl Guides Australia
“IT PROVIDES LEADERSHIP AND PERSONAL SKILLS DEVELOPMENT TO 30,000 MEMBERS, INCLUDING 22,000 YOUNG PEOPLE” GIRL GUIDES MOVE HOUSE Girl Guides Australia is one of the largest not-for-profit organisations in Australia for girls and young women. It provides leadership and personal skills development to 30,000 members, including 22,000 young people, and relies solely on volunteers to carry out their work and run their vital services. It’s been a busy few months for one particular group of Guides in Sydney’s west who were evicted from their hall in North Strathfield earlier this year, to make way for the new WestConnex motorway. Their property
at North Strathfield had been the home for local Scouts and Guides groups since 1955 but in January 2016, the group was forced to relocate to a rundown hall at Greenacre which required $35,000 in renovations. To help out with some of those upgrades and to help get them back on their feet, Bankstown Sports Club has provided funding to cover some of the cost, and Program Advisor and Leader of Youth, Ann Maree Holmes, says the hall now looks amazing. “There are still a few little things we have to do but the majority of the work is done. We have been very lucky to receive donations from a few big businesses like Bankstown Sports and Bunnings, and it’s made a huge difference. “We did lose a few members when we moved because it was too far for people to travel and some people didn’t have transport, but over the last couple of months our numbers have actually increased which is really good. “We have definitely found a new home. Greenacre is a lovely area and we have a lot more space at the new hall which helps us run our programs. I think the eviction was a bit of a blessing in disguise”. Support this year: $4,697 Length of association: 1 year
ANNUAL REPORT 2015 - 2016
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“49 SCHOLARSHIPS WERE PRESENTED AT A SPECIAL AWARDS CEREMONY”
Bankstown Sports Directors and staff from Bankstown-Lidcombe Hospital
NURSES & MIDWIVES AT BANKSTOWNLIDCOMBE HOSPITAL We celebrated Nurses & Midwives Day at Bankstown-Lidcombe Hospital on May 12 2016, through ClubGRANTS we funded a range of scholarships, to further the education studies and skills of staff. 49 scholarships were presented at a special awards ceremony, which will allow nurses to attend conferences, seminars and courses around Australia including the General Surgical and Orthopaedic Nursing Conference in Brisbane, the Wound Management Course in
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Perth and the Advanced Paediatric Life Support Course in Sydney.
the nurses and this is why the club continues to support this initiative.
Several nurses have also been selected to undertake a Masters of Health Service Management at the University of Tasmania and the University of Technology in Sydney, a Graduate Certificate in Clinical Nursing through the Australian Catholic University, and a Masters of Public Health at the University of Western Sydney.
“This is the 10th year that Bankstown Sports has been involved in the scholarship program and to-date, the club has provided more than $400,000 for the scheme, to ensure the local community has the best health care services available, with staff who are highly skilled”.
Bankstown Sports Club President, John Murray, says these scholarships are of great benefit to
Support this year: $40,000 Length of association: 10 years
ANNUAL REPORT 2015 - 2016
Stuart De Pede, Bankstown Sports Men’s Bowls Club
“SUCCESS AGAIN THIS YEAR AND RAISED CLOSE TO $3,500 FOR BANKSTOWN LEGACY” ANNUAL REPORT 2015 - 2016
ANZAC DAY MIXED FOUR BOWLS FOR LEGACY Our annual ANZAC Day bowls competition, organised by the Bankstown Sports Men’s Bowls Club, was a big success again this year and raised close to $3,500 for Bankstown Legacy, which helps to support our war widows. It was a particularly special event this year with bowls club member Stuart De Pede agreeing to shave his head on the day to raise extra funds. He offered the highest bidder the opportunity to cut off his long pony tail, and was able to put $350 towards the donation total.
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COMMUNITY AWARDS
Clubs and Community Awards
2015 NATIONAL RESTAURANT AND CATERING AWARDS The Atrium Bar, inside Bankstown Sports Club won a 2015 National Restaurant and Catering Award in the Small Bar Category, at the 17th Restaurant and Catering Awards. More than 380 local restaurants, cafes and catering businesses were judged across 71 categories, by a team of independent adjudicators, who anonymously visited venues. SERVICE TO SPORT MEDAL AND AWARDS The Service to Sport Medal and Awards night was held in October 2015 in The Grand Ballroom, where dedicated members of our sporting clubs were recognised for their hard work. Gary Penman from Bankstown Sports Women’s Cricket Club was named Volunteer of the Year for his role as an executive committee member and volunteer for the past 15 years. Bankstown Sports Athletics Club was named Club of the Year, after it won five Athletics NSW Club Winter championships in a row, and featured Olympians at the London Games, as well as five Australian Junior Champions in 2015.
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We also gave out three Service to Sport medals, acknowledging volunteers to sport with 20 or more years of service in their sporting club. The recipients were Phil Watson from the Bankstown Sports Strikers Football Club, Terry Minton of Baulkham Hills Football Club and Max McLeay of Bankstown Sports Women’s Cricket Club. CLUBS & COMMUNITY AWARDS Bankstown Sports Club is proud and very humbled to have been named the winner of the 2016 Clubs & Community Awards category – Health & Wellbeing. This category recognises organisations who have helped to sustain and build on improvements in quality health and wellbeing in the community. We were nominated by the Little Wings charity for our on-going financial support, and for providing accommodation for families who use the service. Little Wings is a not-for-profit children’s charity that provides free ongoing flight and ground transport to families in need, and it operates out of Bankstown Airport. Bankstown Sports would like to thank the charity for its
ANNUAL REPORT 2015 - 2016
nomination, and would like to congratulate everyone involved in the work it does. GO WEST 2016 On 19 May, 2016, Bankstown Sports Club rolled out the red carpet and welcomed some very special guests for the Champions of the West Awards Gala Dinner, held in The Grand Ballroom. Prime Minister Malcolm Turnbull and Labor leader Bill Shorten were guests of honour, along with Federal Treasurer Scott Morrison, Premier Mike Baird, and the Go West ambassadors who have been on the Best of the West campaign trail, promoting everything that is good about the western Sydney region. Sporting celebrities including former Australian Cricket Captain Michael Clarke and former NRL stars Nathan Hindmarsh and Anthony Minichiello also rubbed shoulders with actors, singers and entertainers from the local western Sydney area. The night was particularly special for the owners of Bankstown Sports Club’s La Piazza, who won Go West’s Favourite Restaurant Award in the Canterbury-Bankstown region.
SUSTAINABILITY
Bankstown Sports Club and its associated venues continue to strive for a more environmentally friendly workplace, focusing on improved sustainability across all facets of the business.
We recently installed LED lights in the carpark of Bankstown Sports, which are more costeffective and energy efficient, and we are in the process of installing them throughout the entire club.
There has been a lot happening within our clubs over the past 12 months, but despite additional construction and upgrade work, our venues have actually reduced their energy consumption by almost a million kilowatt hours, which is the equivalent of more than 120 average sized homes in Australia.
After positive results seen at Bankstown Sports, we have introduced the Tersano cleaning system at Baulkham Hills Sports Club, Birrong Sports and Bankstown Sports Bowls. The ‘Magic Water’ is a special cleaning agent that can safely be used as a replacement for traditional chemical cleaners, killing all known food and human pathogens, and posing little to no risk to employees, or the environment. All of our venues now use the Tersano system at reception and front desk areas, on our gaming
To help us achieve these results, we have rolled out several initiatives to make us more environmentally friendly as an organisation.
USAGE IN 2014-15 11,820,600KWH
floors, bathrooms, meeting and convention rooms, restaurants, bars and staffroom. We also submitted an entry into the 2016 Green Globe Awards, which is the NSW government’s leading environmental recognition program, celebrating the work of organisations and individuals who are leading the way in making the state a more sustainable place to live and work. Our entry included details of major upgrades to the club’s air-conditioning and ventilation system, and the replacement of two out-dated water-cooled chillers with one state-of-the-art chiller, which is 50 per cent more efficient.
USAGE IN 2015-16 10,840,000KWH
TOTAL ENERGY SAVING FOR 12 MONTHS: 980,589KWH TOTAL FINANCIAL SAVING FOR 12 MONTHS: APPROX. $430,000 ANNUAL REPORT 2015 - 2016
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LOCAL SPORTS BANKSTOWN SPORTS ATHLETICS
Athletes from all over NSW and ACT gathered at The Crest in Bass Hill in December 2015 to compete in the Albie Thomas Mile. The event celebrates the life of one of Australia’s greatest distance runners, Albie Thomas, who was the first athlete to break the sub four-minute mile on grass in 1960.
Elite NSW athlete Jordan Gusman won the 2015 Albie Thomas Mile and also achieved the first ever sub four-minute mile at the Bass Hill venue. He was running the race in honour of his dear friend and training partner, Harry Scouller, who had passed away earlier in that week.
Jordan Gusman Image by Isabella Moro
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ANNUAL REPORT 2015 - 2016
From Left: Director Vern Falconer with Victor Gauci, Bankstown Sports Cricket Club
BANKSTOWN SPORTS CRICKET CLUB Congratulations to Club President Victor Gauci, who was awarded a life membership to the Bankstown Sports Cricket Club in May 2016. He was presented with the traditional green jacket and a medal, by club patron and Director Vern Falconer, at a senior presentation awards evening. Victor has been a member of Bankstown Sports Cricket Club for 20 years and during that time, he has also received an Australia Day award for his dedication to sport.
NETSETGO! Zach Facer, Bankstown Sports Little Athletics Club
BANKSTOWN SPORTS LITTLE ATHLETICS CLUB Zach Facer has been a member of the Bankstown Sports Little Athletics Club for several years and celebrated his 10th birthday in June 2016. Instead of getting presents from his family and friends, Zach asked them to donate the money they would have spent on gifts to the Little Wings charity, to help sick kids in rural NSW. Little Wings is a not-for-profit children’s charity that provides free ongoing flight and ground transport to families in need, and it operates out of Bankstown Airport. Zach originally set himself a target of $500, but managed to get almost $2,000 in donations!
Managing Director of Little Wings, Richelle Koller, says they rely on donations from the community, and Zach’s contribution will go a long way. “Zach’s donation will go towards funding more flights and more ground transfers for seriously ill kids who need treatment in Sydney and Newcastle. The families that use our service live in rural parts of the state and it’s often impossible for them to get to their medical appointments without our help. “We are so impressed and humbled by Zach’s generosity and thoughtfulness at such a young age, and his ability to put himself in the shoes of other kids who are sick and doing it tough. He is a true role model”.
ANNUAL REPORT 2015 - 2016
Our associated netball clubs at Bankstown Sports, Baulkham Hills Sports and Birrong Sports have jumped on board the NetSetGO program again this year. Developed by Netball Australia and the Australian Sport Commission, the online module explains in detail, the benefits of teaching young children about the sport, with the aim to introduce more kids to the game and to help children foster a lifelong interest in being active. It can be used by anyone – from parents and family members, to teachers, coaches and umpires, and is being run through Sporting Schools as well as Australia’s largest school-based sports participation program. The program has been implemented for several junior teams at all three of our clubs, with very positive feedback. Coaches and mentors say it’s a wonderful scheme which has been embraced by players and parents, and has increased their membership numbers.
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OUR VOLUNTEERS JIMMY MORELAND GOES THE EXTRA MILE Jimmy Moreland is a well-known face around Baulkham Hills Football Club, serving as club captain, player, coach, manager, age coordinator, referee, volunteer, and now mentor for the next generation of football referees in the local area. Since hanging up his playing boots in 2009 after 40 years in the game, Jimmy recognised the need for a training program for junior referees, and subsequently set one up. It has been running for four years now and has become the model for other clubs across the association. HELPING THE HOMELESS Gabriel Oliveiro works on the reception desk at Bankstown Sports Club, greeting guests, signing up new members and directing visitors to where they need to go. He is a dedicated and enthusiastic worker who always has a smile on his face and who goes the extra mile for his colleagues. Outside of work, Gabriel continues helping people, and most Saturday mornings he heads into the city to volunteer at the Matthew Talbot Hostel in Woolloomooloo, cooking food and serving meals for homeless men in the local area.
He began volunteering with the hostel once he finished high school, after being introduced to the organisation through a school community service initiative. He says he was taught from a very young age to help others in need, and plans to continue helping the community as much as he can.
LACHLAN HUNT & JASON GAUCI 19-year-old Lachlan Hunt and 20-year-old Jason Gauci are two mates from the Bankstown region, with a passion for cricket. Both play for the Bankstown Cricket Club and have been members for 11 and 15 years, respectively. But it’s not just their dedication to the team that has earned them the praises of their peers and club members. Lachlan and Jason both coach junior teams and happily mentor players from other age divisions, with senior members of the club recognising them as being good examples and positive role models for younger players to look up to. They are also qualified Bankstown and NSW umpires, and give up several hours a week to oversee games. Lachlan and Jason have both been nominated as Volunteer of the Year and Young Club Person of the Year, at the upcoming Service to Sport Medal and Awards, for going above and beyond what’s expected of a player.
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ANNUAL REPORT 2015 - 2016
OUR PEOPLE TRAINING AND DEVELOPMENT It’s been a very busy year behind-the-scenes at all of our venues, with plenty of staff undertaking specialised training and study courses. Over the past 12 months, our Human Resources department has organised more than 260 training courses, with more than 17,000 hours of face-to-face paid training. Almost 2,500 employees attended specialised training and we have recorded more than 6,000 on-the-job training hours. Some of the standout achievements for the financial year include awarding Cert IV or Diploma Scholarships in Hospitality and Leadership to 14 staff members, while apprentice chef Sammy Carbone was nominated for the Apprentice of the Year award. We have also had 170 work-placement students from schools in the local Bankstown area come and spend time with us for some hands-on, industry experience in our kitchens, admin offices and the Human Resources department. MILLION PAWS WALK The staff at Bankstown Sports Club are always keen to give back to the community, whether it be a local cause or something a little bigger, they’re always putting their hands up to help. We also have a lot of animal lovers in our ranks, and the RSPCA’s Million Paws Walk is something very close to our hearts. Our employees have supported this very worthy cause for the past two years, and wanted to do more to help this year! 8 staff members and a few animal-loving buddies met at Sydney Olympic Park in May and set off on the 4km journey around Homebush, accompanied by their fury friends. All up, the Bankstown Sports group managed to raise $671.21 for the charity, with the event generating $236,861.08 nationally.
GOLDEN CHEF Bankstown Sports’ young chef Sarah Hanslow and apprentice chef Sammy Carbone came second in the NSW Metropolitan final of the 2016 Nestle Golden Chef’s Hat Award, which was held at TAFE NSW Northern Sydney Institute in Ryde. The competition is dedicated to helping junior and apprentice chefs to develop their cooking skills and showcase their abilities in front of their peers. It also provides them with the opportunity to be mentored by culinary instructors and gives them access to a national network of professional chefs. Competitors were given 3 hours to cook a main meal and a dessert, which were chosen from a selection of dishes set out by the judges. Judges awarded our team the best dish of day one, but they were narrowly pipped at the post by a team from Surry Hills on day two, with just a few points separating first and second place. Sarah says the whole competition was a great experience. “Being part of this competition has been amazing. We have met some very talented chefs and learned a lot from the judges and mentors. I would definitely encourage other young chefs to get involved if they are ever given the opportunity”. DO SOMETHING DAY Bankstown Sports Club took part in Do Something Day again this year. The event is an initiative created by ClubsNSW in conjunction with politicians, celebrities, sports stars and other ambassadors, to encourage individuals and organisations to carry out random acts of kindness for someone or something that they care about. It’s all in the spirit of ‘giving’ – which is the central theme of the Your Local Club campaign.
Bankstown Sports came up with two initiatives to give back to our local community. The first was a series of movie screenings in The Theatre, with $7.50 from all adult tickets and $2.50 from all children’s tickets sold, going directly back to nominated charities. We raised money for The Dandelion Network, the Salvation Army and Step Ahead. The second initiative was a food drive, where staff collected non-perishable goods to donate to the Salvation Army. Hundreds of items were brought in and were handed over to help those in need. Club CEO, Mark Condi, says he’s delighted that the club has been able to help. “Do Something Day is such a great initiative, and we’re proud to have Bankstown Sports be a part of it. We often take things for granted and forget that others may not be as fortunate. This is a good reminder to be appreciative of what we have and to give back to the community whenever we can”. KOKODA Bankstown Sports Club Duty Manager Daniel Warren was selected to take part in the ClubsNSW Kokoda Youth Leadership Challenge. Staff at clubs in Sydney’s west and southwest were given the opportunity to submit an entry to take part in a once in a lifetime trip to trek the Kokoda trail, and Daniel was successful in securing a spot in the group. As part of his application, Daniel detailed his family’s history of service in the Australian Army, with his father giving over 26 years of service and his grandfather serving 2 years in Gallipoli. He also acknowledges the impact that history has on his current role at the club, and how it inspires him to become a better leader. Daniel joins 15 other future leaders in the clubs’ industry, to trek 150km over 10 days in August, 2016.
ANNUAL REPORT 2015 - 2016
21
ASSOCIATED VENUES BAULKHAM HILLS SPORTS CLUB Baulkham Hills Sports welcomed Sarah Hillhouse as its new venue manager. Sarah has been working with Bankstown Sports and Baulkham Hills Sports for almost 9 years and has experience in a variety of different roles throughout the clubs. She took over the role in February, 2016 and has settled in very well. Her role involves overseeing all operations at the club, including bar, catering, gaming, customer service and staff management. Baulkham Hills has been very successful over the past 12 months, recording $1.5M in beverage sales and $1.6M in food sales through The Gallery Restaurant, and various events. BIRRONG SPORTS CLUB We gave our bar a facelift at the beginning of 2016, replacing all of the beer taps to improve service and overall presentation. We also added a few new taps to increase our product range and provide more beverage options for our members and guests. A media panel has been installed on the back wall of the bar to advertise all promotions and events within the club and we have also made some logistical changes to the keg room to make it more efficient. BANKSTOWN SPORTS BOWLS We gave the bowls club a fresh coat of paint in early 2016 to freshen up the venue for visitors. We’re celebrating 87 years as a club in the local area, and we look forward to serving the community for many more years to come. Members and patrons continue to enjoy regular weekly activities including line dancing, poker, trivia and meat and veggie raffles, and patronage has been steady over the last financial year.
GREENACRE BOWLING CLUB Bankstown Sports Club is pleased to announce it has entered into a Memorandum of Understanding in relation to a proposed amalgamation with Greenacre Bowling and Recreation Club. Greenacre had called for expressions of interest for amalgamation from other registered clubs in the local area and Bankstown Sports submitted an interest. Members from both clubs were then asked to vote on the proposal at separate general meetings, and it was subsequently approved. Greenacre Bowling Club has struggled financially in recent years due to reduced patronage, and despite the board’s best efforts they were forced to look for assistance. The proposed amalgamation by Bankstown Sports is intended to preserve, and where possible enhance the existing facilities and amenities at Greenacre. The agreement is still subject to approval by the Independent Liquor and Gaming Authority.
22
ANNUAL REPORT 2015 - 2016
FINANCIALS 2015 - 2016 Overall membership base as at 30 June 2016
Sporting clubs and community donations
State and federal taxes
Employment
Percentage of profits invested in community and sport*
Total turnover
16.1%
$111.6 MILLION
Surplus before objectives
Purchase of food and beverage
69,827
$2.4 MILLION
$24.5 MILLION
$24.3 MILLION
$15 MILLION
$7.3 MILLION
*The local government areas of Bankstown and Baulkham Hills.
ANNUAL REPORT 2015 - 2016
23
Bankstown District Sports Club Limited | ABN: 88 000 243 916
DIRECTORS’ REPORT The Directors present their report together with the financial report of the Bankstown District Sports Club Limited for the financial year ended 30 June 2016 and the auditor’s report thereon. a) Directors The names, qualifications and responsibilities of the Directors in office as at the date of this report are:-
NAME
OCCUPATION
No. of Years On Board
No. of Attendance at Board Meetings
Retired
10
12 of 12
FULCHER, Alexander Frederick MBE,OAM
Company Director
10
12 of 12
HANNA, Jim
Company Director
1
12 of 12
KLUMPP, Martin
Consultant
3
12 of 12
MURRAY, John
Company Director, President
36
12 of 12
Retired, Vice - President
34
12 of 12
Company Director
10
10 of 12
FALCONER, Vernon Frederick
PHILLIPS, Richard RONIS, Jim
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. No other persons have been a director at any stage during the financial year. b) Company Secretary The Company Secretary at the end of the financial year is Mark Christopher Condi MBA, BBusClubMgt, GAICD, JP. Mr. Condi was appointed company secretary on 7 July 2012.
24
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
c) The principal activities of the Company during the course of the financial year were the promotion of sport and games and the operation of a Licensed Club. There has been no significant change in the nature of these activities since the last report. d) The Net Surplus after Tax and Objectives for the year ended 30 June 2016 amounted to $12,641,994 ($8,967,470 - 2015), an increase of $3,674,524. This increase in surplus is after charging to expenditure depreciation and impairment of non-current assets $10,717,727 ($11,202,030 - 2015), and income tax expense $755,698 ($509,163 - 2015). The higher surplus was due to an increase in trading activity. e) The short and long term objectives of the Company are to continue to provide the very best facilities for its members and guests, support and foster sport in the local area, provide a high level of financial support to community organisations. The strategy for achieving these objectives is to diversify income streams and to lessen the reliance on gaming revenue. f) The Company measures financial and operation performance by: • Benchmarking to industry standards • Profitability • Cash flow • Trading versus Budget • Using gross profit and wage cost ratios • Return on Capital Employed • Patron Visitations g) Bankstown District Sports Club Limited is a company limited by guarantee with the liability of the members to $4 per member as set out in the Company’s constitution. h) There has been no significant change in the state of affairs of the Company in the past financial year. i) A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on the following page. Dated at BANKSTOWN This 11th day of October 2016 ON BEHALF OF THE BOARD AND IN ACCORDANCE WITH ITS RESOLUTION
John Murray Richard Phillips Director Director
ANNUAL REPORT 2015 - 2016
25
Bankstown District Sports Club Limited | ABN: 88 000 243 916
INDEPENDENT AUDITORS DECLARATION 2016 GREG HUGGETT & CO
Phone
(02) 9570 9951
CHARTERED ACCOUNTANT
Fax
(02) 9570 9291
ABN 33 155 958 377
Mobile
0412 239 579
7/83 Mulga Road, Oatley West NSW 2223
ghuggett@bigpond.com
All correspondence: PO Box 4125, Oatley West, 2223
Principal
G W Huggett
The Directors Bankstown District Sports Club Limited PO Box 213 BANKSTOWN NSW 1885
AUDITOR’S INDEPENDENCE DECLARATION SECTION 307C OF CORPORATION ACT 2001 I declare that to the best of my knowledge and belief, during the year ended 30 June 2016 there has been: 1. No contraventions of the auditor’s independence requirements as set out in the Corporation Act 2001 in relation to the audit, and 2. No contraventions of any applicable code of professional conduct in relation to the audit.
G W HUGGETT Greg Huggett & Co Registered Company Auditor Date: 10 October 2016 Oatley West
26
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2016
Revenue from ordinary activities
2016
2015
Revenue from sale of goods
19,356,588
19,291,958
Revenue from gaming
86,683,187
79,217,526
Members’ subscriptions
624,641
572,001
Bank interest received
215,662
102,273
Rental income
1,442,420
1,369,873
Other revenue from ordinary activity
3,341,060
3,130,133
-
37,208
Gain on amalgamation
Note
26
Gain on disposal of real estate held for sale Total revenue
-
25,193
111,663,558
103,746,165
Less expenditure from ordinary activities Cost of goods sold Employment expenses
7,336,477
7,723,607
24,374,560
22,850,246
Depreciation expense
7
9,407,130
9,457,480
Impairment of non-current assets
7
1,310,597
1,744,550
19,580,679
18,399,517
Administration and operating expenses Entertainment, marketing and promotions
7,636,041
7,899,412
Finance costs
1,830,637
1,765,429
Loss (Profit) on disposal of fixed asset
(153,393)
2,243
24,511,868
22,424,749
Total expenses from ordinary activities
95,834,596
92,267,233
Surplus before tax and objectives
15,828,962
11,478,932
755,698
509,163
15,073,264
10,969,769
919,425
764,732
1,511,845
1,237,567
2,431,270
2,002,299
12,641,994
8,967,470
State and federal taxes
Less: income tax expense / (benefit)
12
13
Surplus after tax but before objectives Less expenditure in futherance of the Club’s objectives Sports expenses Community support and welfare Total comprehensive income for the year
The statement of profit or loss and other comprehensive income is to be read in conjuction with the notes to and forming part of the accounts.
ANNUAL REPORT 2015 - 2016
27
Bankstown District Sports Club Limited | ABN: 88 000 243 916
STATEMENT OF FINANCIAL POSITION As at 30 June 2016 Current assets
Note
2016
2015
3
19,661,069
11,249,388
Inventories
4
652,234
593,836
Trade and other receivables
5
2,113,741
2,047,946
Other current assets
6
1,791,395
1,204,692
24,218,439
15,095,862
7
216,831,448
207,889,073
Deferred tax asset
13
510,407
481,871
Intangible assets
8
3,833,028
3,365,243
Other non-current assets
6
Cash and cash equivalents
Total current assets Non-current assets Property, plant and equipment
Total non-current assets Total assets
-
41,667
221,174,883
211,777,854
245,393,322
226,873,716
Current liabilities Trade and other payables
9
9,865,141
9,263,915
Interest bearing liabilities
10
4,771,498
4,766,735
Current tax liability
13
590,904
180,604
Employee benefits
27
3,129,865
2,857,049
Short term provisions
11
Total current liabilities
423,558
436,071
18,780,966
17,504,374
Non-current liabilities Interest bearing liabilities
10
29,393,970
24,849,409
Employee benefits
27
1,438,305
1,403,542
Deferred tax liability
13
2,172,373
2,150,677
33,004,648
28,403,628
51,785,614
45,908,002
193,607,708
180,965,714
7,111,305
7,111,305
Retained surplus
186,496,403
173,854,409
Total equity
193,607,708
180,965,714
Total non-current liabilities Total liabilities Net assets Made up of: Equity Land and buildings revaluation reserve
The statement of financial position is to be read in conjuction with the notes to and forming part of the accounts.
28
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2016
Retained earnings
Reserves
Total
164,886,939
7,111,305
171,998,244
Net surplus for the year
8,967,470
-
8,967,470
Transfers from reserves
-
-
-
173,854,409
7,111,305
180,965,714
12,641,994
-
12,641,994
As at 1 July 2014
As at 30 June 2015 Net surplus for the year Transfers from reserves As at 30 June 2016
-
-
-
186,496,403
7,111,305
193,607,708
STATEMENT OF CASH FLOWS For the year ended 30 June 2016 Cash flows from operating activities
Note
2016
2015
117,475,589
109,163,115
(89,599,569)
(86,660,919)
(1,748,813)
(1,734,755)
217,145
100,674
(352,237)
-
25,992,115
20,868,115
301,083
374,000
Payment for property, plant and equipment
(22,040,756)
(11,675,582)
Net cash used in investing activities
(21,739,673)
(11,301,582)
Proceeds from borrowings
8,321,762
-
Repayment of borrowings
(3,772,438)
(4,057,798)
Funds received from other parties
100,000
91,667
Funds advanced to other parties
(490,085)
-
Net cash used in financing activities
4,159,239
(3,966,131)
Net increase / decrease in cash held
8,411,681
5,600,402
Cash receipts in the course of operations Cash payments in the course of operations Borrowing costs paid Interest received Income taxes paid Net cash provided by operating activities Cash flows from investing activities Proceeds from sale of property,plant and equipment
Cash flows from financing activities
Cash at the beginning of financial year Cash at the end of financial year
14(i)
11,249,388
5,648,986
19,661,069
11,249,388
The statement of cash flows is to be read in conjuction with the notes to and forming part of the accounts.
ANNUAL REPORT 2015 - 2016
29
Bankstown District Sports Club Limited | ABN: 88 000 243 916
NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016
1. Corporate Information This financial report is for Bankstown District Sports Club Ltd as an individual entity, incorporated and domiciled in Australia and is a company limited by guarantee. The Registered Office is located at 8 Greenfield Parade Bankstown NSW 2200. The financial statements were approved by the Board of Directors on 11 October 2016. 2. Summary of significant accounting policies a. Basis of Preparation This financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB), International Financial Reporting Standards as issued by the International Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below and they have been consistently applied unless otherwise stated. Except for cashflow information, the financial statements have been prepared on an accruals basis and are based on historical costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. This financial report has been prepared under the Going Concern concept. b.
30
Statement of Compliance Certain Australian Accounting Standards and Interpretations have recently been issued or amended but have not been adopted by the Club for the annual reporting period ended 30 June 2016. The directors have not early adopted any of these new or amended standards or interpretations as the directors have not yet fully assessed the impact of these new or amended standards (to the extent relevant to the Club) and interpretations.
c.
Changes in Accounting Policies There were no changes in accounting policies during the year.
d.
Inventories Inventories are valued at the lower of cost and net realisable value.
e.
Income Tax In accordance with the concept of mutuality, income tax is liable on income derived from non-members and other parties. The charge for current income tax is based on the surplus for the year, adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted at the balance sheet date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements.
e.
Income Tax - continued No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting, or taxable profit or loss. Deferred tax liability is calculated at the tax rates they are expected to apply to the period when an asset is realised or a liability is settled. Deferred tax is credited in the income statement, except where it relates to items that may be credited to equity, in which case the deferred tax is adjusted against equity. Deferred tax assets are recognised to the extent that it is probable that future tax profit will be available against which deductible temporary differences can be utilised. The amount of benefits brought to account, or which may be realised in the future, is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with conditions of deductibility imposed by the law.
f.
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 provisions that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee provisions payable later than one year 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 employees wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows attributable to employee provisions.
g.
Leases Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the lease property, or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight line basis, over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as expenses in the period in which they are incurred.
h.
Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year.
i.
Property, Plant & Equipment i. Property, plant and equipment are brought to account at cost, or at independent valuation where cost cannot be ascertained, less, where applicable any accumulated depreciation. The carrying amount of property, plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
2. Summary of significant accounting policies - continued i. Property, Plant & Equipment - continued of the expected net cash flows, which will be received from the assets employment and subsequent disposal. ii. Buildings are depreciated on a straight-line basis where as all other depreciable assets are on a diminishing value basis over their estimated lives. Buildings on leasehold land are written off on the consideration of the remaining term of the lease, likelihood of the lease being renewed, and the present cash generation ability of the building. There is the exception of leasehold poker machines that are amortised on a straight-line basis.
l.
m. Trade and Other Receivables Sales made on credit and due in 30 days are included in Trade Debtors at balance date net of a provision for amounts estimated to be uncollectible. The Company does not have any material risk in this area. Other debtors have been complying with their obligations on a timely basis to the extent that there is presently no material credit risk. n.
Trade Creditors Liabilities are recognised for amounts to be paid in the future for goods or services received whether or not billed to the Company. Trade accounts are normally settled within 30 days unless there are specific arrangements to the contrary.
o.
Bank Bill Facility The bank bill facility in current liabilities comprises the current portion of the Company’s bank bill repayment within one year. The bank bill facility is repayable in minimum quarterly instalments of $1,000,000. The Company does have the right to make additional reductions in principal. The bill bears interest at the bank’s interest rate plus a margin. The Company is required to submit to the bank an annual capital budget for approval. That part of interest that relates past 30 June is included as a prepayment.
p.
Subscription Income Members’ subscriptions, which are paid in respect of the coming years, are not brought to account as revenue in this financial year but expressed as unearned income (liability) in the statement of financial position.
q.
Goods and Services Tax (GST) Receivables and Payables in the statement of financial position are shown inclusive of GST. Revenues, expenses, and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or an item of the expense.
r.
Impairment of Assets At each reporting date the Company reviews the carrying value of its assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the assets, being the higher of the assets fair value less costs to sell, and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the statement of profit or loss and other comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which that asset belongs. The following impairment write offs were recorded:
iii. Land and buildings are revalued by a professional independent valuer every three years. That valuation is shown in the notes to and forming part of the financial statements, but not the actual statement of financial position. iv. In the earlier years of the Company, there was regular revaluation of real estate being land and buildings and the revaluation was expressed in the statement of financial position. That policy ceased in 1986. Due to the time periods when such revaluations occurred it appears impossible to fully apply AASB 116:Property, Plant and Equipment, whereby such assets are to be reduced back to their original cost. The departure from this standard is considered to have an immaterial effect v. In this year, as in previous years, the Company at 30 June has had considerable building works under construction. Advice is received annually from the Company’s quantity surveyors, Kinlay Grinham Casey Burne as to completed works and that are still under construction at 30 June. The quantity surveyor further advises as to completed works in respect of dividing costs between buildings, plant and equipment and repairs. vi. When real estate is purchased the acquisition cost is divided between land and buildings. The land value is determined by a recent Valuer Generals Valuation and the balance of the purchase price is allocated to buildings. vii. Depreciation rates for each class of depreciable asset are: Class of fixed assets Buildings Poker Machines Leased Poker Machines Motor Vehicles Other Plant & Equipment
Depreciation rate 1 - 10% 21% 21% 22.50% 1.5 - 40%
viii. The potential capital gains tax on the disposal of applicable land and buildings has not been taken into account. j.
Cash and Cash Equivalents For the purposes of the statement of cash flows, cash includes cash on hand and at bank.
Intangibles - Poker Machine Entitlements The Directors believe that the value shown in respect of poker machine entitlements is based on an active market at 30.6.16, and accordingly the values are not impaired, and as such, entitlements have an indefinite life and amortisation need not be considered. Each poker machine licence is an effective cash generating unit.
Impairment of assets
Note
Buildings Plant and Equipment Intangibles 7
k.
2016
2015
-
949,105
1,310,597
685,231
-
110,214
1,310,597
1,744,550
Revenue Trading revenue is recognised upon the delivery of goods and services to customers. Interest revenue is recognised at the earliest of receipt or being due and receivable. The profit and loss on disposal of assets is brought to account at the date an unconditional contract comes into being. ANNUAL REPORT 2015 - 2016
31
Bankstown District Sports Club Limited | ABN: 88 000 243 916
NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2016
2. Summary of significant accounting policies - continued s.
Investment Property Investment property consists of local real estate and it is held for the purpose of deriving rental income. All tenant leases are on an arm’s length basis.
t.
Critical Accounting Estimates and Judgements Critical Accounting Estimates and Judgements incorporated in the Financial Report are based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. Key estimates - Impairment The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amounts incorporate a number of key estimates. Estimates assume a reasonable expectation of future events are based on current trends and economic data, obtained both externally and within the organisation. Property, plant and equipment, licences, poker machine entitlements and receivables have been reviewed by the Company and impairment losses have been reflected in the statement of profit or loss and other comprehensive income.
u.
Financial Instruments Cash on hand and at bank are measured at face value. Receivables are measured at face value less provision for likely non recovery. Bank bills and members’ debentures (unsecured) are measured at face value. Interest income and interest expense is recognised as earned or incurred.
v.
Investment in Subsidiary The Bankstown District Sports Club Ltd holds a 100% interest in the share capital of BDSC Agencies P/L. This company is a trading entity. As the financial position of this company is totally immaterial, consolidated financial reports are not required in accordance with AASB 10 - Consolidated Financial Statement and therefore have not been prepared. The net assets of BDSC Agencies Pty Limited as at 30.6.16 was $122,446 (2015-$Nil). A further subsidiary was established , being BDSC Properties Pty Limited with net assets at 30.6.16 as $Nil.
w. Business Combinations AASB 3 Business Combinations has been applied with respect to the amalgamation of Revesby Heights Ex-Servicemen’s Memorial Club Ltd in 2014. Identifiable assets and liabilities have been recorded at either their fair values or where applicable the value that was realised in an active and open market. 3. Cash and cash equivalents 2016
2015
19,661,069
11,249,388
Beverage
577,930
526,343
Catering
74,304
67,493
652,234
593,836
1,580,729
1,947,946
533,012
100,000
2,113,741
2,047,946
Cash at bank and on hand
4. Inventories
5. Trade and other receivables
Trade debtors (Net of doubtful debt provision of $3,815 ($3,815 - 2015)) Other receivables and loans
32
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
6. Other assets 2016
2015
1,447,350
1,199,463
344,045
5,229
1,791,395
1,204,692
-
41,667
Current Prepayments Deposits
Non-Current Other receivables and loans 7. Property, plant and equipment 2016
2015
Land
21,497,214
21,497,214
Land held for investment
1,379,000
1,379,000
22,876,214
22,876,214
171,251,080
158,974,851
3,618,016
3,618,016
Buildings - leasehold land
4,863,695
4,863,695
Buildings - under construction
9,255,105
6,984,131
188,987,896
174,440,693
(29,869,796)
(27,228,644)
159,118,100
147,212,049
91,803,361
91,206,261
(56,966,227)
(54,793,159)
34,837,134
36,413,102
Leased plant and equipment
-
2,780,338
Less: accumulated amortisation
-
(1,392,630)
-
1,387,708
216,831,448
207,889,073
Buildings Buildings - held for investment
Less: accumulated amortisation
Plant and equipment Less: accumulated depreciation
Total property, plant and equipment
Land and buildings were independently valued at open market value by Ben Hill,AAPI Registered Valuer No. 024135 of Global Valuation Services Pty Ltd on 23 March 2016 at $250,940,000 (GST exclusive). This value has not been taken up in the accounts. This valuation was prepared on the basis of completed works (renovations) at that point in time. It does not take into account any additions and improvements to buildings since that date or the acquisition of land. Details of the Company’s property, plant and equipment and their carrying amount are as follows: Land Balance 1 July 2015
22,876,214
23,206,214
Additions
-
-
Disposals
-
(330,000)
22,876,214
22,876,214
Balance 30 June 2016
ANNUAL REPORT 2015 - 2016
33
Bankstown District Sports Club Limited | ABN: 88 000 243 916
NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2016
7. Property, plant and equipment - continued Buildings Balance 1 July 2015 Transfers from capital works in progress Disposals Balance 30 June 2016
Amortisation Balance 1 July 2015 Amortisation written back on disposal
2015
167,456,562
168,465,789
12,276,229
1,241,716
-
(2,250,943)
179,732,791
167,456,562
2016
2015
(27,228,644)
(25,777,017)
-
1,301,839
(2,641,152)
(2,753,466)
Balance 30 June 2016
(29,869,796)
(27,228,644)
Carrying amount at end of year - buildings
149,862,995
140,227,918
2016
2015
Balance 1 July 2015
91,206,261
87,574,243
Additions
4,345,493
6,573,354
1,126,557
782,992
2,780,339
94,333
Disposals
(7,655,289)
(3,818,661)
Balance 30 June 2016
91,803,361
91,206,261
2016
2015
(54,793,159)
(51,637,378)
4,502,720
3,186,320
(6,675,788)
(6,342,101)
(56,966,227)
(54,793,159)
34,837,134
36,413,102
2016
2015
2,780,339
2,305,922
-
568,750
(2,780,339)
(94,333)
Disposals
-
-
Balance 30 June 2016
-
2,780,339
2016
2015
(1,392,630)
(1,030,717)
Amortisation
Plant and equipment
Transfers from capital works in progress Transfers from plant and equipment under lease
Depreciation Balance 1 July 2015 Depreciation written back on disposal Depreciation Balance 30 June 2016 Carrying amount at end of year - plant and equipment
Plant and equipment under lease Balance 1 July 2015 Additions Transfers to plant and equipment
Depreciation Balance 1 July 2015 Depreciation written back on disposal
1,482,820
-
(90,190)
(361,913)
Balance 30 June 2016
-
(1,392,630)
Carrying amount at end of year - plant and equipment under lease
-
1,387,709
Depreciation
34
2016
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
7. Property, plant and equipment - continued Capital Works in Progress
2016
2015
Balance 1 July 2015
6,984,130
3,163,410
Additions
15,739,681
5,911,238
(12,276,229)
(1,241,716)
(1,126,557)
(782,992)
Transfers to expenses
(65,920)
(65,810)
Balance 30 June 2016
9,255,105
6,984,130
216,831,448
207,889,073
Cost written back
-
2,250,944
Amortisation written back
-
(1,301,839)
Impairment
-
949,105
Cost written back
6,424,521
3,848,826
Depreciation written back
(5,113,924)
(3,163,595)
Impairment
1,310,597
685,231
-
110,214
1,310,597
1,744,550
3,833,028
3,365,243
6,352,325
6,267,963
3,512,816
2,995,952
9,865,141
9,263,915
Transfers to buildings Transfers to plant and equipment
Asset write off / impairment Buildings
Plant and Equipment
Intangibles Impairment Total impairment
8. Intangible assets
Poker machine entitlements
9. Trade and other payables
Trade creditors Other
ANNUAL REPORT 2015 - 2016
35
Bankstown District Sports Club Limited | ABN: 88 000 243 916
NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2016
10. Interest bearing liabilities 2016
2015
4,000,000
4,000,000
771,498
766,735
4,771,498
4,766,735
28,600,000
23,278,238
714,340
1,490,601
79,630
80,570
29,393,970
24,849,409
Current Bank cash advance facility Bank loan
Non-current Bank cash advance facility Bank loan Members’ debentures (unsecured)
The Westpac Bank holds a registered equitable mortgage over the assets and undertakings of the Company and also holds registered mortgages on real estate owned by the Company to support a maximum cash advance facility of $33,000,000. The actual indebtedness at 30.06.2016 was $32,600.000 ($27,278,238 - 2015). The interest rate as at 30th June was 2.65%, with the average for the current year being 2.78% (In 2015 the interest rate at 30th June was 3.99% and the average for the year 4.4%).
In accordance with the finance agreement in place, the Bank has the right to give notice to the effect that all indebtedness will convert to a current liability. In the ordinary course of events this is not expected to occur. Bank indebtedness is made up of: Cash advance facility 1 - $30,000,000 - This facility has quarterly principal reductions of $1,000,000 and matures 19.11.2018. Cash advance facility 2 - $2,600,000 - This facility matures 19.11.2020. Contingency Liability - Bank Guarantees - $1,107,000. Overdraft - $2,000,000 Financial Risk Exposure and Management The Company has two areas of exposure being interest and liquidity. The directors and management have addressed the area of interest rate rises by capping the maximum interest rate that may be charged on $15,000,000 of the present debt. With respect to liquidity the Company has further developed its gaming capacity and broadened its income base by continuing to provide new and contemporary facilities. The Company also has real estate that may be disposed of if liquidity demands. The Company has a cashflow budget which is continually monitored and updated. Apart from bank indebtedness other areas of financial risk are minimal.
36
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
Sensitivity Analysis The Company has performed a sensitivity analysis relating to its exposure to Interest Rate Risk at balance date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these risks. At date of this report, a stable low interest environment exists and is expected to continue. Interest Rate Risk Sensitivity Analysis: At 30 June 2016, the effect on surplus and equity as a result of changes in the Interest Rate Risk, with all other variables remaining constant would be as follows: Change in surplus
2016
2015
Increase in interest rate risk by 1%
(293,163)
(285,567)
Decrease in interest rate risk by 1%
293,163
285,567
Increase in interest rate risk by 1%
(293,163)
(285,567)
Decrease in interest rate risk by 1%
293,163
285,567
143,487
140,768
5,000
5,000
275,071
290,303
423,558
436,071
Poker machine tax
23,214,797
21,151,244
Payroll tax
1,204,826
1,203,205
Fringe benefits tax
74,602
52,590
Land tax
17,643
17,710
24,511,868
22,424,749
Change in equity
11. Short term provisions
Members’ debentures (unsecured) interest Members’ debentures (unsecured) redemptions Poker machine link jackpot
12. State and federal taxes
ANNUAL REPORT 2015 - 2016
37
Bankstown District Sports Club Limited | ABN: 88 000 243 916
NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2016
13. Income tax The Company is liable for Income Tax only on non-member income, external investments and monies paid by other parties. The statement showing how the tax expense for 30 June 2016 has been calculated is: 2016
2015
34,138,412
33,416,703
(28,361,973)
(28,591,815)
5,776,439
4,824,888
2,042,176
1,840,006
7,818,615
6,664,894
(5,276,821)
(5,319,198)
2,541,794
1,345,696
-
(743,684)
2,541,794
602,012
Tax Payable at 30%
762,538
180,604
Less: instalment taxes paid
(171,634)
-
Balance due as at 30.6.16
590,904
180,604
Tax payable at 30%
762,538
180,604
21,696
163,039
Less: decrease - deferred tax asset
(28,536)
165,520
Income tax expense / (benefit)
755,698
509,163
429,910
409,613
Poker machine link accrual
25,887
15,821
Superannuation accrual
54,610
56,437
Deferred tax asset as per statement of financial position
510,407
481,871
Opening balance 01.07.2015
481,871
647,391
Credited (debited) to statement of profit or loss
28,536
(165,520)
Closing balance 30.06.2016
510,407
481,871
Non-member income Less: non-member expenses Add: income / (loss) taxable in full
Less: expenses allowable in full
Less: prior years carried forward losses Taxable income / (loss)
Add: increase - deferred tax liability
Deferred tax asset The balance comprises temporary differences attributable to: Amounts recognised in income Employee benefits
38
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
13. Income tax - contiued The deferred tax asset will only be realised if: 1) the Company derives future assessable income of a nature and of an amount sufficient to enable the asset to be realised; 2) the Company continues to comply with the conditions for deductibility imposed by law; and 3) no changes in tax legislation adversely affect the Company in realising the asset. Deferred tax liability
2016
2015
Depreciation - timing differences
2,172,373
2,150,677
Opening balance 01.07.2015
2,150,677
1,987,638
21,696
163,039
2,172,373
2,150,677
The balance comprises temporary differences attributable to:
Debited (credited) to statement of profit or loss Closing balance 30.06.2016 14. Cash flow information
(i) Reconciliation of cash For the purposes of the statement of cash flows, cash includes cash on hand, cash at bank and investments in money market instruments. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position. (i) Reconciliation of cash Cash at bank and on hand
19,661,069
11,249,388
33,000,000
27,278,238
(32,600,000)
(27,278,238)
(ii) Financing facilities The Company has an arrangement with the Westpac Bank to provide funds and support facilities: (ii) Financing facilities Credit facility Amount utilised Overdraft
2,000,000
2,000,000
Unused credit facility
2,400,000
2,000,000
15. Superannuation commitments The Company has superannuation plans in place to provide employees with benefits in the event of retirement, death, or disability. There is a legally enforceable obligation on the Company to contribute to a superannuation fund at a rate that is determined by industrial agreement. 16. Commitments (a) Capital expenditure commitment Capital expenditure committed but not provided for or payable: 12,165,644
8,986,927
Not later than one year
-
5,112
Between one year and five years
-
-
Total lease liability
-
5,112
-
5,112
Not later than one year
(b) Lease commitment Lease commitments payable:
Represented by Current liability Non-current liability
ANNUAL REPORT 2015 - 2016
-
-
-
5,112
39
Bankstown District Sports Club Limited | ABN: 88 000 243 916
NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2016 17. Auditor’s remuneration 2016
2015
63,710
61,575
3,160
3,010
During the year the following fees were paid or payable to Greg Huggett & Co for: Audit Other services: Taxation services
18. Contingent liabilities There were no known material contingent liabilities as at 30 June 2016. Any legal action afoot is not likely to significantly affect the Company’s future operations. 19. Mortality Benefit The Company’s current policy is to pay each full member a mortality benefit of $200 provided that he was a full member for at least five years prior to 31.12.1983. 20. After Balance Date Events No events have occurred since 30th June to date of signing this report that would have a significant financial affect on the company apart from: i. An application has been made to the Independent Liquor & Gaming Authority of NSW, for the amalgamation of Greenacre Bowling & Recreational Co-Operative Club Limited with Bankstown District Sports Club Ltd and negotiations are afoot. The financial exposure to the company is expected to be not material. ii. The Company will be advancing BDSC Properties Pty Limited $5.4 million to further its development. 21. Related Party Transactions & Directors Remuneration The Company has paid Ronis Real Estate, in which Director Jim Ronis has an interest, an amount of $9,783 in property management fees for the year ended 30 June 2016. No Director or a near relative of a Director has benefited from a transaction involving the Company other than stated above. No Director has been paid remuneration or is owed remuneration. No loan or advances have been made to Directors or their relatives. Except when on official duties, Directors pay usual commercial prices for goods and services. 22. Company Limited by Guarantee Bankstown District Sports Club Limited is a company limited by guarantee with the liability of the members to $4 per member as set out in the Company’s Constitution. Membership numbers at 30 June 2016 were 69,827. 23. Employee benefits
Net movement in provision for employee benefits Number of employees at year end
307,579
124,341
488
516
24. Core property disclosure Section 41J of the Registered Clubs Amendment Act 2006 requires Bankstown District Sports Club to nominate its core and non core property assets. Core Property Assets are: The Club premises comprised on the whole of the land at 8 Greenfield Parade, Bankstown and the Club premises comprised on the whole of the land at 11 Renown Road, Baulkham Hills. Non core property assets are: 41 Northam Avenue 9 Greenfield Parade 9A Greenfield Parade 11 Greenfield Parade 13 Greenfield Parade 22 Bankstown City Plaza
40
Bankstown Bankstown Bankstown Bankstown Bankstown Bankstown
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
25. Key management personnel Remuneration paid or directed to key management personnel was:
2016
2015
2,783,739
2,765,370
Key management personnel are arm-length employees and are not Directors of Bankstown District Sports Club Ltd. Remuneration consists of salary, wages, superannuation, fringe benefits, annual leave, sick leave and long service leave as legally required. The directors, CEO, and General Manager review and decide wage remuneration packages. 26. Gain on amalgamation Bankstown District Sports Club Ltd acquired the assets and liabilities of Revesby Heights Ex-Servicemen’s Memorial Club Ltd in 2014. Assets Land and buildings Plant and equipment Poker machine entitlements Total assets
2016
2015
-
-
-
-
Liabilities Mortgage - real estate Other liabilities and creditors Total liabilities Surplus on amalgamation
(37,207) (37,207) 37,207
27. Employee provisions Opening balance at 1 July 2015
4,260,591
4,136,251
Additional provisions raised during year
2,081,455
1,613,544
Amounts used
(1,773,876)
(1,489,204)
Balance at 30 June 2016
4,568,170
4,260,591
Employee benefits - current liability
3,129,865
2,857,049
Employee benefits - non current liability
1,438,305
1,403,542
4,568,170
4,260,591
Made up of:
ANNUAL REPORT 2015 - 2016
41
Bankstown District Sports Club Limited | ABN: 88 000 243 916
DIRECTORS’ DECLARATION The Directors of the Company declare that the financial report and notes as set out on pages 27 to 41 for the year ended and as at 30 June 2016 are in accordance with the Corporations Act 2001 including:
1. (a) comply with Accounting Standards and the Corporations Regulations 2001; and (b) give a true and fair view of the financial position as at 30 June 2016 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. ON BEHALF OF THE BOARD and in accordance with its resolutions Dated at BANKSTOWN This 11th day of October 2016.
John Murray Richard Phillips Director Director
42
ANNUAL REPORT 2015 - 2016
Bankstown District Sports Club Limited | ABN: 88 000 243 916
INDEPENDENT AUDIT REPORT Independent Audit Report to the members of Bankstown District Sports Club Limited ABN 88 000 243 916 Report on the financial report I have audited the accompanying financial report of Bankstown District Sports Club Limited, which comprises the statement of financial position as at 30 June 2016, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Directors’ declaration. Directors’ responsibility 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 (including the Australian Accounting interpretations) 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 is free from material misstatement, whether due to fraud or error. Auditor’s responsibility My responsibility is to express an opinion on the financial report based on my audit. I conducted the audit in accordance with Australian Auditing Standards. Those standards require that I comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for the audit opinion. Independence In conducting the audit, I have complied with the independence requirements of the Corporations Act 2001. I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Bankstown District Sports Club Limited, would be in the same terms if given to the Directors as at the time of this auditor’s report. Opinion In my opinion, the financial report of Bankstown District Sports Club Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. G W HUGGETT Registered Company Auditor Greg Huggett & Co Chartered Accountant ABN: 33 155 958 377 7/83 Mulga Road, Oatley West This 12th day of October 2016 Liability limited by a scheme approved under Professional Standards Legislation.
ANNUAL REPORT 2015 - 2016
43
44
ANNUAL REPORT 2015 - 2016
ANNUAL REPORT 2015 - 2016
45
T 02 9722 9888 F 02 9793 9355 8 Greenfield Parade Bankstown, NSW 2200