2018
BLACKTOWN WORKERS CLUB LIMITED
ANNUAL REPORT
Contents 03
About this report
04
Annual Highlights at a Glance
08
Our Mission & Values
12
President’s Report
14
CEO’s Report
16 Heritage 20 Members 26
Sub Clubs
30 Community 38 People 43 Future 46 Environment 48
Corporate Governance
57 Annual Financial Report
2
About This Report Welcome to the 2018 Blacktown Workers Club Group Annual Report. This year we introduce a new and more informative Annual Report as we provide members with an account of the Groups performance across the business and local community.
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We Make a
DIFFERENCE Over 60 years ago, Blacktown Workers was created to make a positive difference in our local community. This year we took the initiative to take an independent and transparent look at the impact we have in our local area. We contracted an independent international firm used by government and international business to take a critical, independent look at our Group, and report an our social-economic impact on the area in which we operate. Here are the results:
$899,807 TO SPORTING SUB CLUBS
$87.5 million contributed to the NSW economy
$13.1 MILLION PAID IN TAX
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$30 MILLION FOR COMMUNITY SPORTING FIELDS
$13.2 MILLION IN WAGES FOR LOCAL PEOPLE
$71 MILLION
IN DIRECT @ INDIRECT WAGES TO NSW SUPPLIERS STAFF
606 FULL TIME equivalent jobs supported in NSW in 2018
$1,642,923 IN COMMUNITY DONATIONS
By choosing Blacktown Workers as your venue of choice, we have been able to support our community to record high levels over the past year.
18,000 HOURS
IN VOLUNTEERING
$55 MILLION OPERATING TURNOVER IN 2018
5
We Care
ABOUT KEEPING YOU INFORMED NET ASSETS
$122,000,000 $120,000,000 $118,000,000 $116,000,000 $114,000,000 $112,000,000 $110,000,000 $108,000,000 $106,000,000 $104,000,000 $102,000,000
2015
2016
2017
2018
MEMBERS
55,500
55,000
54,500
54,000
53,500
53,000
52,500
52,000
2015
2016
REVENUE VS
56,000,000
2017
2018
EXPENSES
54,000,000
52,000,000
50,000,000
48,000,000
46,000,000
44,000,000
42,000,000
40,000,000
2015
2016
2017
2018
2017
2018
$6,000,000
NET PROFIT $5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2015
6
2016
THE RECORDS WE HAVE BROKEN
This Year
1.8 Million visitors to our Clubs WE DONATED more to our Community than in the past 10 YEARS
Over $3 Million in prizes won by our members
$30
$120 MILLION IN NET ASSETS
MILLION
an increase of $4.9 million
invested on sporting fields
FOR LOCAL
CHILDREN
100%
of staff received training by the club
in attendance at our free children’s party,
over 8,000 an increase of 34%
A PROFIT FROM TRADING OF
$5.5 MILLION Increase in Club owned properties by
$22.75 million
in 2018
More Than
18,000
in volunteer hours in our local community
WE ARE DEBT FREE 7
Our Vision To Create a better everyday life for our members.
OUR MISSION A culture of service supports our vision to provide venues, activities and lifestyle options that enhance and benefit our community through our Profit for Purpose business model.
OUR CORE VALUES
PEOPLE
WE TREAT ALL PEOPLE WITH RESPECT, DIGNITY AND EQUALITY.
We are a high performing team that never compromises or accepts mediocrity.
FINANCIAL SUSTAINABILITY
WE ARE A PROFIT FOR PURPOSE BUSINESS.
We perform in every department and invest in our business and community to ensure ongoing success for years to come.
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COMMUNITY
WE PROVIDE COMMUNITY SUPPORT THAT IS RELEVANT AND IMPROVES THE LIVES OF LOCAL PEOPLE.
We are a cornerstone of our community that people can trust and rely upon.
EXCELLENCE
WE ARE A DIVERSIFIED BUSINESS BASED ON THE NEEDS OF LOCAL PEOPLE.
We are setting new standards in meeting the needs of our members & community into the future.
Our Values exciting people
values fun
CARING PROFESSIONAL loyal
HEART
GENUINE
service
INDUSTRY-LEADER
9
We Are
PROFIT FOR PURPOSE
Companies traditionally operate in the ‘for profit’ environment or the ‘not-for-profit’ environment. The middle ground between the two opposing business models is known as ‘profit for purpose’. Profit for Purpose means we are led by a mission to achieve social and community benefit through trading an excellent business and then channelling our profits to improving our club and community. The Workers Group was born out of mateship and built to improve local lives. Today we exist to carry on that legacy.
•Profit from every beer poured,
every meal served, and every game played is invested back into our local community through either a grant, donation or new facilities and services for our locals to enjoy.
•We provide employment, leisure,
entertainment and care for local people.
•Through our whole of life approach, we aim for social engagement and social inclusion amongst our members, reducing the risk of social isolation.
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11
President’s REPORT
have been working on this project with many meetings and discussions over the last 3 years to get the right outcome for you. We have many anxious members already showing great interest.
Hello Members, 31st December bought a close to our 2018 financial year which passed us so rapidly. I would like to mention a few of the highlights included in this very busy year. I feel our members can be extremely proud of our new Sports Precinct at the Walters Road end of our Workers Sports Club on Reservoir Road. I believe this to be the largest privately owned Sporting area in New South Wales and features Rugby League and Soccer Fields with their own grandstands, Cricket area, playground for children, extensive landscaping and walking tracks (which will also be a valuable asset to our Seniors Living Resort). This area will provide much enjoyment and training for our members, their children and the community in general. I have been keeping our members updated on our Seniors Living Resort and as going to print we are very close to lodging the DA to council. I know it seems a long process but we 12
2018 also gave us changes in Management and Staff. We welcomed Dale Hunt as the new CEO of the Workers Group. Dale commenced in May and his feet haven’t touched the ground yet. Dale is extremely enthusiastic and is driven for success of our Clubs. Our movement in Management included Kylie Canning from Venue Manager at Workers Sports to Venue Manager of Blacktown Workers Club (Campbell St.), Brett Lane from Venue Manager at Hubertus Country Club to Workers Sports and John Filipec from Customer Service Manager at Blacktown Workers to Venue Manager at Hubertus Country Club, showing our staff there are pathways they can follow to achieve rewarding results. I congratulate the Managers on their appointments. Congratulations to my fellow Board Members, Management and Staff on the successful year and increased financial result. The Club still remains debt free. We are not standing still for 2019 and there are plenty of possibilities we are still working on for the benefit of our members and longevity of our Clubs. I thought the following stats would be of interest. As at the end of December we have 55066 members including 17 Foundation/Old Tin Shed (1955-1959), 422 VIP (with over 50 years membership) and 5770 Quarter Century (with over 25 years membership). All showing tremendous support to the Club. On behalf of the Board I take this opportunity to thank our hard-working committees of our 33 Sporting Bodies. Without their volunteered time and commitment, they would cease
to our members THAN WE HAVE IN THE PAST DECADE
to exist and our members and their children would miss out on this social and sporting interaction. Congratulations to Soccer, Softball, Ladies Golf and Intra Club, who celebrated their 50th Anniversary during 2018. Tremendous effort. The Children’s Christmas Party was held this year at Hubertus Country Club and was a great success with over 8,000 people attending and the number of children registered was well above previous years. We have approved some updating to many areas of our Blacktown Workers Club (Campbell Street) Club and we are finalising ideas and concepts. This will commence shortly in sections to eliminate as much disruption as possible. Bear with us during this time and I hope you will be pleased with outcome. Our Campbell St Club will always play a relevant part to the City of Blacktown and will do so well into the future. You as a member can be proud of what we stand for. Thank you all for the dedication and support you give the Board of Directors and myself. One team - Board - Management- Staff and Members. Keep Smiling and be Kind to each other. KAY KELLY Group President.
“
“We have given more back
$1,642,923 COMMUNITY DONATIONS
$150,630
IN KIND DONATIONS
$899,807
SPORTING & SUB CLUBS
$60,000 MORTALITY BENEFITS
$30 MILLION SPORTING FIELDS
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CEO’s REPORT
Dear Members, Firstly, thank you for welcoming me so warmly in my first year as CEO of the Workers Group. 2018 has certainly been a big year for the Workers and one of which we can all be proud. It was a year of change and improvement across the Club as we introduced a number of initiatives that will see long term benefits into the future. Improvements were made in our Corporate Governance including new policies and systems for procurement, controls and reporting, as well as improved efficiencies throughout the business to deliver a more robust and successful Club for our members.
We gave more back to our members than we have in the past decade with over $3 Million. in member rewards and prizes. We delivered transformational projects such as the new $30 Million Sporting precinct for our local community to enjoy for decades to come. For the first time ever, every single employee received some form of training to improve their skills to better serve our members. We had the lowest level of workers compensation claims in more than 10 years now sitting 3% below industry average. 2018 was about creating a base from which to grow. The Board of Directors has given very clear direction that our Club is about our members and that we need to deliver to the members needs as our highest priority so 2018 was about forming the ability to do so. The Boards leadership and very clear instruction in this area has made it possible to plan for a strong future. Diversification is an important part of future plans, it not only reduces future risk however also meets the changing needs of our members. The key is in identifying areas where our members benefit and where we can add a positive contribution to the lives of our members. We must remain relevant and supportive in our members lives. Retirement Living is one such area of diversification and the unique model that Blacktown Workers has developed is about improving lives rather than simply providing accommodation. Things may have been able to have been achieved faster if we were willing to settle for less than the very best, however our members deserve something that is truly outstanding, and that goal takes time to achieve.
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Slowly and surely has certainly been the call to get things right. Improvement in existing Club facilities continue, with the refurbishment of the Campbell Street Club now underway and work being done in stages to reduce any negative impact on your enjoyment. The new look is to be matched with a new standard of food, promotions and enjoyment that will appeal to many and allow Blacktown Workers Club to enjoy more success over the coming years. Our talented and committed people have delivered a great result for the Club and for our Members, and I would like to take the moment to say a heartfelt thank you to each and every person employed by the Workers Group for all your efforts this year. The encouragement, guidance and support from President Kay Kelly and the Board of Directors has been invaluable and I thank them for leading us in such a robust and helpful manner. Dale Hunt Group Chief Executive Officer
TOTAL REVENUE $55 MILLION INCREASE OF $1.3 MILLION FROM LAST YEAR
TOTAL EXPENSES $49.7 MILLION REDUCTION OF $711,000 FROM LAST YEAR
PROFIT BEFORE INCOME TAX $5.5 MILLION INCREASE OF $2 MILLION FROM LAST YEAR
NET ASSETS $120.4 MILLION INCREASE OF $4.9 MILLION FROM LAST YEAR
21 January 2019
EBITDA $14 MILLION
INCREASE OF $2 MILLION (3.1%) FROM LAST YEAR
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We Care
ABOUT OUR HERITAGE
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“ We created a place that would bring “
our community together
AND MAKE A POSITIVE DIFFERENCE
Over the past 63 years,
the Workers has had an amazing positive impact on our local community. We often celebrate the accolades without remembering the history of where it all began. We should be proud and appreciative of the incredible foresight and vision of our original founders. Did you know that it all started over an argument about a beer? On the 23rd January 1955, the Blacktown branch of the Labor Party met at the Blacktown School of Arts to discuss the merit of forming a Club. The group led by Tom Gibbs had been drinking for years at the local Robin Hood Hotel and had been mistreated by the manager. They decided to boycott the hotel and create their own drinking establishment. This revolutionary meeting changed the history of Blacktown. Not only was the Club formed, key foundations were established for it’s existence. All people were to be treated equally. The venue was to be non-sectarian and non-political. The original suggested name of Blacktown Workingman’s Club was rejected as women should not feel precluded. Blacktown Workers Club was to be an inclusive venue for all.
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We Care
ABOUT OUR HERITAGE We remember those from whose combined efforts this Club was inaugurated. 1955 – Our Foundation Members H Allen S J Barter W Boardman W Brown R Burr A Colby A Davies D Dewar C B English R Finlay-Jones R Fredericks H E Green S R Hickman A M Hunt J Jobling L Keldie C Lane W Larkham A Lovegrove H Manfield L Masters F Moren J McCloskey Sn L O’Connor G Pedashekno J R Power L Robson L Rutherford C M Smith G T Stead F Svatos H Thomas O Robshaw K Williams E A Wright
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J Allen R H Bartley J S Bromfield R Brown J Cadman J Coles E J Davies A Dingwall C Evans W R Fraser G Gedgawd T Hall T Hoare L Irwin C Johns F Kentwood M G Lane A Laudenbach J Lynham A J Martin G F Menz D Morrison H Mcdonald O Coppo C L Phillips L Preston J H Robinson A Shakespeare G Smith W D Steel D Taylor A Thorne J Wall K Williams S Wright
H Antiss L Bassell D Brown P Bruton R Cameron C Cooper J Dale W R Dillon C S Evans C Fraser T A Gibbs I R Heine A G Hulbert D Maciver C Johnson J Kilpatrick W A Lane H E Laybutt L Maher A L Martin A Mitchell A C Munro J Newis A Patrick J C Phillips H Riordan J Roots T Shorrock K Smith T Stephens L Taylor J Timms A Ward R Whitelaw
W A Ashton J G Boyd E Brown F Burke E Clancy S Crawford A Davis N Doyle D Farrow J S Freeman A Goldring C Hellyer H C Hulbert H James R Jones W King C R Lansley H G Lenz D Maloney W Mark J G Moffatt S Muston W H Nicholas S Pawlak A Philpot R Ritchie W J Roots R W Sinclair J C Smith G N Stewart H Tebbet L Trinder C West A E Winter
S Barter C Brazill G Brown B Burr R Clay S I Crellin R A Dawson E R Dunn E J Faull V Frey K Goldring J Hennessy A S Hunt R Jessop P Karatus L C Land C Larkham C Locke J D Maloney A J Mason P Montiglio J McCloskey Jn J Noble K H Pearce S Portelli P Robson R Russell C E Smith R G Smith J Sturt L Tebbet C C Vincent M West H Whitton
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We Care
ABOUT OUR MEMBERS MEMBERSHIP We are proudly one of Australia’s largest Clubs with 55,066 members. We are extra proud of the loyalty and support shown by our members to the Club. A very special thank you to the 17 Foundation/Old Tin Shed (1955-1959), 422 VIP (with over 50 years membership) and 5,770 Quarter Century (with over 25 years membership) who remain members to this day.
The number of members as at 31 December 2018 and the comparison with last year is as follows:
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2018
2017
Ordinary 55,058
Ordinary 53,237
Life 8
Life 8
Total 55,066
Total 53,245
55,066
MEMBERS
OF BLACKTOWN WORKERS GROUP.
57
YEARS
THE AVERAGE AGE OF OUR MEMBERS.
64%
OF MEMBERS
LIVE WITHIN 5KM OF OUR MAIN CLUB.
46%
OF MEMBERS ARE FEMALE.
422
MEMBERS
HAVE HAD OVER 50 YEARS OF CONTINUOUS MEMBERSHIP.
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We Care
ABOUT OUR MEMBERS
CHILDREN’S CHRISTMAS PARTY For more than 40 years, the Workers has held a FREE annual Children’s Christmas Party. In 2018, more than 8,000 people enjoyed the carnival rides, animal experiences and free food.
AN INCREASE OF
34% FROM LAST YEAR 22
More Than $3 MILLION IN 2018 IN PRIZES WON BY OUR MEMBERS
SENIORS CHRISTMAS PARTY Over 500 people enjoyed a two-course meal, live entertainment and free gift at our annual seniors Christmas Party.
CELEBRATING WITH OUR SENIORS SINCE
1955
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We Care
ABOUT OUR MEMBERS
We Love Our Members!
AND THIS IS HOW WE SHOW IT ... CHANCE TO WIN IN A SHARE OF
$20,000 DURING THE MONTH OF YOUR BIRTHDAY
DISCOUNTED HOLIDAY UNITS
JUST FOR BEING A MEMBER
FREE
SHUTTLE BUS
SERVICE FOR MEMBERS
$1.50 SAVED
ON SCHOONERS JUST FOR BEING A MEMBER
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DISCOUNTED GYM MEMBERSHIP HAVE A DRINK ON US
FREE BEVERAGE
$5 SAVING ON SELECTED TICKETED SHOWS IN OUR DIAMOND SHOWROOM (ON AVERAGE)
DURING THE MONTH OF YOUR BIRTHDAY
MEMBERSHIP TO 3 VENUES
$6 MEMBERSHIP Exclusive Members Only Promotions ANNUAL CHILDREN’S CHRISTMAS PARTY
ACCESS TO SPORTING FACILITIES AND SUB CLUBS
FREE ENTRY
FOR MEMBERS AND THEIR KIDS
Discounts On Food & Beverage Across All Venues
Members enjoying our monthly Champagne Wednesday luncheon and show.
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We Care
ABOUT OUR SUB CLUBS
SPORTING GROUPS The encouragement of sport has always been a high priority for the Workers Club. Today we are the home of 33 Sporting & Sub-Clubs and the owner of Australia’s largest privately owned sporting complex, H.E Laybutt Reserve. In 2018, we were pleased to congratulate Blacktown Workers Softball Club, Blacktown Workers Football Club, Blacktown Workers Ladies Social Golf Club and Blacktown Workers Intra-Club on their 50th year anniversaries. The difference sporting and sub-clubs make in our community are often overlooked. When you consider the vital role in terms of social inclusion for our local community, the positive impact that these groups have on making our community a better place is a truly valuable asset. We thank our sub-club and sporting team volunteers for their thousands of hours of their own time given. We continue to be proud of the tens of thousands of lives that our sporting and Sub Clubs have improved over the years and look forward to growing their support into the future.
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We Care
ABOUT OUR SUB CLUBS PROVIDING SPORTING FACILITIES UNLIKE ANY OTHER No other business in Australia provides the level of commitment to sporting and sub clubs as the Workers. We own and operate Australia’s largest privately owned sporting complex at Workers Sports Club and an entire floor of the Club in Campbell Street as well as Shooting ranges and lake at Hubertus Country Club. Our fully owned sporting facilities include: • Rugby League Fields • Soccer / Football Fields • Lawn Bowling Greens • Pistol Shooting Range • Table Tennis Room
• Netball Courts • Baseball Fields • Cricket Oval • Snooker Room • Darts Room
• Indoor Bowls • Tennis Courts • Rifle Range • Model Boats Lake • Fitness Centre
Each of these facilities come at a cost to maintain and operate, including the time involved in serving our sporting and sub clubs. We see it as an integral part of who the Workers is and our role in the local community to provide these for our local people to enjoy.
$899,807 IN SPORTING & SUB CLUB SUPPORT IN 2018
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We Care
ABOUT OUR COMMUNITY Our commitment to improving the lives of local people has never been as high as it is today. Whilst we often act and support quietly in the background, letting others take the credit, we are supporting and assisting more than ever before‌. Here are just a few of the stories from behind the scenes.
THE CLONTARF FOUNDATION The Clontarf Foundation is about improving education, discipline, life skills, self esteem and employment prospects of young Aboriginal and Torres Strait Islander men. The Foundation believes that failure to experience achievement when young, coupled with a position of underprivilege can lead to serious consequences. As a prelude to tackling these and other issues, participants are given the opportunity to succeed and in turn raise their self esteem using football as the vehicle for achieving this outcome.
Using the existing passion for football, the program attracts the boys to school and keeps them being educated and supported.Upon completing the program, graduates are assisted to find employment and given support until they are comfortable with their new job and surroundings. We were very proud this year to have the Blacktown Workers partnership with the Clontarf Foundation awarded the ClubsNSW award for best Youth Leadership program of any Club in the industry.
SETTING
FOUNDATIONS FOR GREAT LIVES AHEAD
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TATHRA BUSHFIRES On Sunday 18 March 2018, a bushfire swept through the town of Tathra on the South Coast of NSW. More than 200 people were evacuated and 69 homes were lost. The call went out for help and Blacktown Workers were there to support.
REBULIDING LIVES IN TIMES THAT MATTER
In came Team Rubicon Australia with the skills and Blacktown Workers Group with the support. 83 volunteers logged over 5300 hours helping the community and its residents. Blacktown Workers was the largest single contributor to the relief operation.
RATHAS PLACE We were proud to partner with help2help in establishing Rathas Place in St Marys. A cafĂŠ that has been established to provide training and employment opportunities for local people with intellectual and developmental disabilities. The aim is to show, through a cup of coffee, that disability is simply a label and that the people behind that label are just bursting with ability.
SUPPORTING THE LOCAL COMMUNITY
BLACKTOWN HOSPITAL This year we were pleased to donate a much needed Fibroscan machine to Blacktown Hospital. This ultrasound like machine is a non-invasive and safe way to assess damage to the liver caused by diabetes, obesity or hepatitis and will replace the need for invasive liver biopsies. A simple action that will have a huge positive impact on improving local lives.
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WARAKIRRI COLLEGE Warakirri College in Blacktown is for students from 14 to 22 years of age that have disconnected from mainstream schools due to mental health challenges, complex and traumatic family circumstances or behaviours that have lead to expulsion.
CONNECTING OUR
COMMUNITY
Using evidence that outdoor education activities in bushland settings help to promote social skills, self-confidence and self-discipline. This year we sent students on overnight camps to help build better kids for a better local community.
LEARNING LINKS Our support of Learning Links helps local children and young people with learning difficulties and special needs overcome their barriers and fulfilling their lives. We now fund a Speech Therapist to work one day a week with children and teachers at Blacktown North Public School.
MEALS ON WHEELS
HELPING FOR OVER 32
20 YEARS
For more than 20 years, Blacktown Workers has been providing the transport, doing the rosters and providing the lunch and drinks for the volunteers of Blacktowns Meals on Wheels program. It has been a big commitment from the Workers but knowing that local people are getting a meal and a visit makes a huge difference in the lives of local people. The opportunity to see a friendly smile, have a chat and know that someone cares, is often more important than the meal they receive. We really are proud to be supporting this very worthwhile cause.
MAKING OUR COMMUNITY A BETTER PLACE There are many community groups in our local area making a wonderful difference in peoples lives. Not many realise that standing quietly behind them in support and giving them the resources to succeed is one consistent community enterprise…. The Blacktown Workers Group. This year, we are proud to have supported many groups making a real positive difference. Listed below are just a few of those groups: • Rotary Police Officer of the Year Awards • Mt Druitt Hospital • Access Industries for the Disabled Ltd • Miracle Babies Foundation • Apex Club • Holy Family Primary School • Warakirri College Blacktown • Blacktown City Lantern Club • Western Sydney Local Health • Lions Club • Inner Wheel Club of Blacktown City • Guide Dogs NSW • Learning Links • AFFORD • Delta Society • Rotary Club • Ornamental Turning Group of Australia • Zonta Club • Cumberland Nationals Servicemen’s Association • KYCL Benevolent Fund • Madison Sport • Traffic Offenders Program • Pathways Community Care • Leukemia Foundation • Lalor Park Public School • Autism Community Network • Forsight Foundation • Better Foundation • Veterans Benevolent Fund RSL & Services • Autism Spectrum Australia • Clontarf Foundation • Blacktown Hospital • View Club • Blacktown City Umpires Association • Blue Datto • Parramatta Mission • Meals On Wheels 33
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We Care
ABOUT OUR COMMUNITY SPORTING FIELDS We invested $30 Million in upgrading and improving our Sports Fields at Workers Sports. H.E. Laybutt Reserve was already Australia’s largest privately-owned sporting fields however we took the standard of grounds to an entirely new level so local children have the opportunity to train and play on the best fields in Western Sydney. The official opening held on 2 March 2019 marks a new level in quality sporting facilities for local people to enjoy with 54 acres (21.8 hectares) providing sporting facilities for:
• Rugby League • Football (Soccer) • Lawn Bowls • Tennis • Netball • Baseball • Cricket Add children play grounds, a walking path and a Club to stop and enjoy and it is certainly a one of a kind destination.
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We Care
ABOUT OUR COMMUNITY RANDOM ACTS OF KINDNESS Our staff also took up the challenge to make a difference this year and donated more than 350 hours of their own time, efforts and support in team activities in our local community‌.. check out what the Workers Crew has been active in this year.
MT DRUITT PALLIATIVE CARE Our staff from Workers Group arrived at the entrance of Mt Druitt Palliative Care and performed a random act of kindness that changed a dusty patch of land into a green and peaceful oasis.
WINTER WARMERS Our amazing staff created a Winter Warmers appeal. Staff donated and filled backpacks with supplies and goods to keep local homeless people warm and more comfortable during cold winter nights.
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HEROES WALK Our staff stepped forward in supporting the Australian Defence Force Veterans in need of assistance. The Honour our Heroes walk in Parramatta Park saw our staff undertake a 42 km walk to raise funds and awareness of our veterans needs.
OTHERS TALK THE TALK WALK THE WALK
WE
HOMELESS PERSONS WEEK Staff arrived at Parramatta Mission and delivered a surprise bus load of much needed items donated by our staff to homeless people. Not only that but our amazing staff then donated their time assisting with handing out food, drinks and hampers to those in need.
ITEMS DONATED BY OUR OWN
STAFF
A PROUD GROUP The Blacktown Workers Group were proud to be awarded the ClubsNSW Youth Leadership Award for doing the most of any club in terms of supporting youth in the community.
LEADERSHIP 2018 YOUTH AWARD WINNER
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We Care
ABOUT OUR PEOPLE
270
STAFF
ARE THE HEART OF OUR BUSINESS
350
HOURS
OF THEIR OWN TIME WAS DONATED BY OUR STAFF TO IMPROVE THE COMMUNITY
64%
OF OUR STAFF
LIVE WITHIN 5KM OF OUR MAIN CLUB
60%
OF OUR STAFF
ARE FEMALE, 13% HIGHER THAN THE NATIONAL AVERAGE
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39
We Care
ABOUT OUR PEOPLE
From left to right - Ange Humphries, Robert Vincent, George Vella, Jim Buckley, Kay Kelly, Jack Miller, Terry O’Loughlin, Pat Collins, Gary Callaghan
OUR DIRECTORS Our Board of Directors are a group of individuals that are elected by our members and donate their own time to work for the Club. The Board is responsible for the overall corporate governance of the Workers and as part of their role are required to undertake annual training, attend regular meetings, take on liability and responsibility for legal matters and to take on fiduciary and governance responsibilities.
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OUR MANAGEMENT
The Board is complemented by a management team of high-performance professionals with wide industry experience and skills. We have carefully chosen our management team to be able to combine experience and skills in areas that benefit our business today and into the future, together our Board and Management bring experience in: • Club Management • Medical • Seniors Living • Aged Care • Elite Sport • Human Resources & Recruitment • Change Management • Environmental • Travel • Insurance
• Construction • Workplace Safety • Public Relations • Promotions • Marketing • Risk Management • Governance • Professional Services • Retail • Information Technology
Back Row - Elizabeth Star (Entertainment Manager) Kiran Arora (Catering Manager) Sue Macdonald (Executive Assistant) Ross Siragusano (Gaming Manager) Tina Maamari (Community Relations Manager) 41 Front Row - Shelley Fletcher (HR Manager) Dale Hunt (Chief Executive Officer) Anneke Lemmerman (Strategic Manager) Frank Raiti (Chief Financial Officer)
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We Care
ABOUT OUR FUTURE
Blacktown Workers Club Group has always been about meeting our members needs and today that core purpose remains at the heart of what we do. In the 1950’s locals needed a place to gather with mates and enjoy a beer. In the 1960’s, the community lacked sporting fields for young families so land was purchased on Reservoir Road In the 1970’s, people of Blacktown needed live bands and entertainment and in the 1980’s the focus was on affordable meals for local families to enjoy. Today, it is about creating intergenerational community hubs where all are equal, cared for, have access to quality facilities and service at an affordable price. Community venues for all ages and all demographics in our local area. The future brings with it new challenges and new opportunities. We are now planning on staying relevant and of value to our members over the coming years. The average age of our members has moved from their 30’s to now in their late 50’s. Our community is changing and our local area is growing. With those changes come new needs for our members. We will always remain a Club however we will also be adding new services for our members to enjoy well into the future. That’s the difference between Blacktown Workers and others. We see more than today, we plan on being an important and valued part of your life for decades to come.
Creating a better life for our members
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We Care
ABOUT YOUR FUTURE Whilst others may look to build retirement living, the Workers knows we can do better. We are about Intergenerational Living, its more than a place to put your feet up, it’s a place to enjoy life. From watching children play, to living within an environment that attracts all ages to gather, for us retirement is about living life. It is a place where you can choose to take it easy or be involved, a place to relax or a place to play, a place to gather with others of your own age or mix with all ages… it is a place for YOU. The Workers Group has been a part of every stage of many members lives, so when looking for a place to reward ourselves after all the years of work, why shouldn’t it be the Workers that we enjoy in this stage of life as well. This year we start construction on what we believe will be the best retirement village in Australia, a place where people can enjoy being part of an interconnected community including a Club, sporting facilities, a variety of dining options and much more. We are looking to set a new standard in retirement for our members to enjoy because our members deserve the best we can do.
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We Care
ABOUT OUR ENVIRONMENT INITIATIVES Blacktown Workers Club Group is committed to a better environment and are transitioning each year to even higher standards of improvement. For a business like Blacktown Workers, it not only makes sense to lead our community in caring about our environment. We also use it to encourage other businesses to do the same by comparing the amounts we have saved in dollar terms by being environmentally conscious.
79,545Gj
IN ENERGY SAVING
SINCE 2012, RESULTING IN A SAVING OF $3,458,682
$137,618
OF SOLAR ENERGY SAVINGS SINCE 2013
81,322kl
OF WATER SAVINGS
RESULTING IN A SAVING OF $280,561
46
The development of our newest addition to facilities also shows our commitment with our new sporting fields at Workers Sports Club. The 37,000m² of grass that has been laid is complemented by 20km of irrigation pipe using runoff and residual stormwater for 100% of our irrigation needs. All four playing surfaces have been designed to retain and recycle water. Our stormwater and irrigation water is collected into a 1,000,000 litre water tank and then used to irrigate the area. The environmentally sensitive area had significant works undertaken by Garry Allen – Head Greenkeeper of the Blacktown Workers Club Group. His team rehabilitated the area using a Management Plan which involved removing all the introduced planting and replacing with local native species. Over 150 trees were retained and the trees that were permanently removed were turned into mulch for landscaping around the sporting precinct. Nesting boxes and landing pads were introduced into the trees for the use of over 5 species of Micro bats. Flora corridors were planted to assist with the movement of the bats. An exclusion zone was also created around an area of the dam for the protection of the endangered Meridolum Corneovirens also known as the Cumberland Plain Land Snail.
47
We Care
ABOUT OUR CORPORATE GOVERNANCE In June 2018, following the start of our new Group CEO, the Board of Directors and Senior Management team met to discuss and deliver the Strategic Plan for the business. We adopted a proactive approach to creating a good governance culture that values our members, promotes ethical, responsible behaviour and contributes sustainable value to our members. At the start of each financial year, we set a demanding meeting schedule and training calendar for Directors. Attendance is strictly monitored and each meeting is documented. Monthly reporting from Management is tabled and KPIs reported. This year we introduced a number of new initiatives including: • Code of Conduct for Directors • Training for all Directors • Delegation of Authority • Risk Management Strategy • New Sub-Committees for Risk, Audit, Buildings & Donations • New policies for procurement, tenders, contracts, and agreements including independent review. The Board reserves certain powers for itself and delegates certain authority and responsibility for the day to day management of the Club to the Group CEO (and other people responsible for the day to day management of the Club). The Group CEO in turn delegates certain authorities to senior executives. These delegations are regularly reviewed and confirmed and are consistent with the requirements of the Australian Institute of Company Directors.
48
THE ROLE & RESPONSIBILITIES OF THE BOARD
Performance
Culture & Conduct
Integrity of External Reporting
• Overseeing and guiding the culture, reputation and standards of conduct of the Workers Club Group. • Evaluating the effectiveness of policies and processes established to promote the maintenance of high ethical standards. • Monitoring and influencing the Workers Club Group’s culture, including by overseeing the implementation of strategies, policies and controls that motivate desired behaviours and promote sustainable outcomes for customers, shareholders and other stakeholders.
• Reviewing with the guidance of the Audit Committee, the processes, controls and procedures in place to maintain the integrity of accounting and financial records and statements. • Reviewing monitoring our reporting to members and regulators, including the provision of objective, comprehensive, factual and timely information.
Members Interests • Representing members whilst having regard to the interests of other stakeholders including our customers and community. • Maintaining a focus on consistent business performance, behaviour, transparency and accountability. • Reviewing and approving corporate governance principles and policies.
Strategy • Considering and approving corporate strategy and plans. • Reviewing and approving major investment and strategic commitments. • Reviewing and approving capital management initiatives.
• Overseeing performance against the Group’s operating budgets, financial plan, strategic plan, risk appetite statement, financial operating plan, capital management and funding strategy. • Reviewing and approving the Group’s audited financial statements.
Risk Management and Compliance • With the guidance of the Risk Committee, review, oversight and challenge the risk management framework, and its implementation by management. • Maintaining appropriate ongoing dialogue with principal regulators. • Overseeing and approving the Group’s Risk Appetite Statement. • Overseeing our approach to climate change and climate change risk.
Executive Review and Succession Planning • Approving key executive appointments and remuneration, and monitoring and reviewing executive succession planning and diversity. • Evaluating the performance of the Group CEO, Executive Leadership Team and other senior executive.
49
We Care
YOUR BOARD OF DIRECTORS The Directors present their report together with the financial statements of Blacktown Workers Club Limited (the company) for the year ended 31 December 2018. The Directors of the company in office at any time during or since the end of the financial year were:
Kay Kelly President Life Member
With more than 43 years membership of Blacktown Workers and 24 years as a Director of the Club, Kay Kelly as President for the last 11 years, has lead Blacktown Workers to become one of the industry’s most successful and recognised Clubs. Her passion for members and helping the community sees her currently sit on all Sub-Committees as well as the Site committee for delivering the new sporting complex and the Seniors Living project. Kay brings a unique set of skills and knowledge to the Club and a wealth of historical knowledge to ensure we always remember why we exist.
CLUB MEMBER SINCE
1976
50
Jack Miller JP Senior Vice President
Jacks passion for the sporting bodies and Club business combined with more than 30 years of management experience and construction knowledge has resulted in Club membership of more than 43 years and as a Director from 2010-2012 and from 2015 – present. His commitment to the community sees him as delegate to the Sister City Committee on Blacktown Council and a member of Blacktown Lions.
PASSIONATE ABOUT CLUB BUSINESS
Volunteers Making a
Terry O’Loughlin JP Junior Vice President Life Member
A Club member since 1969 and a Club Director for 25 years. Terry, as House & Field Committee Chairman and as an Executive on the Federation of Workers Club Holiday Units represents our members and Sporting Groups to maximise social inclusion and an improved life. A life member of both the Club and the Blacktown Workers Golf Club clearly shows a commitment to members for many years.
CLUB DIRECTOR FOR
25 YEARS
POSITIVE DIFFERENCE
“
“ Your Board, 9 Dedicated
James Buckley JP Treasurer Life Member
As Treasurer of Blacktown Workers, Jim holds a steady reign of a business that he has been a member of for more than half a century. A Club Director 1998,1991-1994 and from 2007 – Present, his long term commitment to the club also sees him represent Blacktown Workers as a State Councillor of ClubsNSW, the industry body and as a former owner of a family transport company. His business knowledge and skills add to the success of the Club.
CHAIRMAN OF DONATIONS COMMITTEE 51
We Care
YOUR BOARD OF DIRECTORS Gary Callaghan Director
In his 20th year of Club membership, Gary has served the Club in numerous positions from holding senior positions in our Rugby League committee through to 7 years as a Club Director. His professional knowledge in the areas of Human Resources and Workplace Development have been important in decision making and his position as a trustee for Media Superannuation have resulted in improved outcomes for our staff.
SERVING THE CLUB IN NUMEROUS POSITIONS
Pat Collins Director Life Member
As a Blacktown resident for more than 40 years, Pat is passionate about improving life in the local area. As a Club member for 34 years and a Club Director for 12 years. Pat has bought his experience to assist in astute decisions on business development and growth that complement the social and care needs of the local community.
CLUB MEMBER SINCE
1984
52
Ange Humphries Director
With experience in journalism, PR and small business, Ange has a commitment to ensuring an inclusive social hub for all the community to enjoy. Her commitment to sporting and sub clubs means that all of our community have a place to gather, be included and enjoy. As a Director of AFFORD (Australian Foundation for Disability), her commitment to the disabled in our community results in a better life for the disadvantaged and as a member of the Institute of Company Directors, she places strong importance on governance.
STRONG IMPORTANCE ON GOVERNANCE George Vella Director
Having lived and worked in Blacktown since 1959, George is committed to ensuring Blacktown Workers makes a positive difference in the local area. As the owner of a local business (Breakaway Travel) his daily involvement with local people give an insight into local needs and his involvement in sporting clubs and business associations bring attention to the Board of needs and desires in the local community.
LIVED IN BLACKTOWN SINCE
1959
Robert Vincent Director Life Member
A life member of the Club and a member for 54 years, Bob brings his intimate knowledge of the local community to benefit decisions being made. Having worked in Blacktown all his working life, his daily feedback from Club members and the community contribute to the Clubs current and future direction and his involvement in Rotary and Apex bring a community focussed approach to our community club.
MEMBER FOR
54 YEARS 53
We Care
DIRECTORS MEETING GENERAL BOARD MEETING Kay Kelly Jack Miller Terry O’Loughlin James Buckley Gary Callaghan Pat Collins George Vella Ange Humphries Robert Vincent STRATEGIC BOARD MEETING Kay Kelly Jack Miller Terry O’Loughlin James Buckley Gary Callaghan Pat Collins George Vella Ange Humphries Robert Vincent AUDIT & RISK MEETING Kay Kelly Jack Miller Gary Callaghan George Vella Pat Collins DONATIONS COMMITTEE Kay Kelly James Buckley George Vella
54
NUMBER HELD 11 11 11 11 11 11 11 11 11 NUMBER HELD 13 13 13 13 13 13 13 13 13 NUMBER HELD 02 02 02 02 02 NUMBER HELD 10 10 10
NUMBER ATTENDED 10 11 11 09 09 10 09 08 11 NUMBER ATTENDED 13 13 11 09 09 10 12 08 12 NUMBER ATTENDED 02 01 02 01 01 NUMBER ATTENDED 05 09 06
BUILDING COMMITTEE Kay Kelly Jack Miller Terry O’Loughlin James Buckley Gary Callaghan Pat Collins George Vella Ange Humphries Robert Vincent EXECUTIVE MEETING Kay Kelly Jack Miller Terry O’Loughlin James Buckley
NUMBER HELD 08 08 08 08 08 08 08 08 08 NUMBER HELD 03 03 03 03
NUMBER ATTENDED 07 06 06 05 04 06 06 07 05 NUMBER ATTENDED 03 03 03 03
During 2018, Directors were also required to attend meetings relating to project control groups, sports and field committees,sporting presentations, industry association meetings and community meeting. 55
We Care
DIRECTORS TRAINING 2018 2018 saw a year of increased commitment to Corporate Governance and business. related courses.
COURSE
Role Of Director Date Security Future Planning Global Gaming Trends Industry Issues Developing People & Culture Branding E Commerce Food & Beverage Economic Trends Business Comms E Sports Maximising Technology Office Networking Payment Devices & Content Digital Technology
Digital Marketing
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KAY KELLY
JACK MILLER
TERRY O’LOUGHLIN
JAMES BUCKLEY
GARY CALLAGHAN
PAT COLINS
GEORGE VELLA
ANGE HUMPHRIES
ROBERT VINCENT
BLACKTOWN WORKERS CLUB LIMITED DIRECTORS’ REPORT
MEMBERSHIP The company is a company limited by guarantee and is without share capital. The number of members as at 31 December 2018 and the comparison with last year is as follows: MEMBERSHIP Ordinary Life
Total
2018
2017
55,058
53,237
8
8
55,066
53,245
MEMBERS’ LIMITED LIABILITY In accordance with the Constitution of the company every member of the company undertakes to contribute an amount limited to $2 per member in the event of the winding up of the company during the time the he or she is a member or within one year thereafter. The total liability in the event of winding up is $110,132 (2017: $106,490).
OPERATING RESULT The table below shows a reconciliation of Blacktown Workers Club Limited earnings before interest, income tax, depreciation, amortisation and impairment losses. This is referred to as EBITDA.
Net profit after income tax expense attributable to members Add back:
Depreciation & amortisation expense Income tax expense EBITDA
2018 $
2017 $
4,947,732
3,239,043
8,470,072 556,718
8,504,663 262,997
$13,974,522 25.4%
$12,006,703 22.3%
According to reports, a Club with an EBITDA above over 25% is considered “very healthy”.
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BLACKTOWN WORKERS CLUB LIMITED DIRECTORS’ REPORT
OBJECTIVES The objectives for which the company is established are to provide for members and for members’ guests a social and sporting Club with all the usual facilities of a Club, to look after the members in every possible way by providing service, comfort, entertainment, good food and a wide range of facilities to cater for every age group, and to give the community a significant proportion of the Club’s profits in support of various charities and community organisations.
• • • • •
Maintain membership numbers and increase attendance at all premises Improve the experience of members using the Club facilities Improve profitability and efficiency of Club operations Increase cash reserves of the Club Maintain level of community support funding
LONG TERM OBJECTIVES
• • • •
Diversify income streams Maintain financial stability of the Club Ensure facilities continue to cater for members’ needs Increase efficiency of energy consumption
STRATEGY FOR ACHIEVING THE OBJECTIVES
• • • •
Research on members’ preferences for facilities and services Review promotional activity conducted in the Club Evaluate operational procedures and staff training Investigate alternatives for producing income from non-traditional sources
SHORT TERM OBJECTIVES
PRINCIPAL ACTIVITIES The principal activities of the company during the course of the financial year consisted of the conduct and promotion of licensed social and sporting Clubs, and the provision of sporting and recreation facilities to members of the company.
58
BLACKTOWN WORKERS CLUB LIMITED DIRECTORS’ REPORT
HOW THESE ACTIVITIES ASSIST IN ACHIEVING THE OBJECTIVES The principal activities of the company contributed to achieving the objectives by providing a stable base of operations. This ensured the financial position of the company remained stable and generated funds to meet the demands of the company and maintain high levels of service to members and guests.
PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS The financial performance of the Club is measured against the budget set and benchmark data from the Club industry. Some of the criteria reported on are: • • • • •
Earnings before Interest, Taxation, Depreciation and Amortisation (EBITDA) Per Capita Spend Gross Profit Margins Expense Ratios and Analysis Cash Flow
NON-FINANCIAL PERFORMANCE IS ASSESSED BY A VARIETY OF MEASURES INCLUDING: • • • • •
Mystery shoppers Members’ feedback Staff turnover Comparison with industry wide initiatives Market research
KEY PERFORMANCE INDICATORS
BAR GROSS PROFIT 2018 $2,841,910 2017 $2,918,041
CATERING WAGES TO SALES % 2018 29% 2017 33%
GROSS PROFIT % 2018 59% 2017 60%
GROSS PROFIT 2018 $2,249,210 2017 $2,203,771
WAGES TO SALES % 2018 60% 2017 65% GROSS PROFIT % 2018 63% 2017 61% 59
BLACKTOWN WORKERS CLUB LIMITED DIRECTORS’ REPORT
AUDITOR’S INDEPENDENCE DECLARATION A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 61.
Signed in accordance with a resolution of the Directors.
Dated at Blacktown this 25th day of February 2019.
Kay Kelly President
60
Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au
Level 11, 1 Margaret St Sydney NSW 2000 Australia
DECLARATION OF INDEPENDENCE BY PAUL CHEESEMAN TO THE DIRECTORS OF BLACKTOWN WORKERS CLUB LIMITED
As lead auditor of Blacktown Workers Club Limited for the year ended 31 December 2018, I declare that, to the best of my knowledge and belief, there have been no contraventions of: • •
The auditor independence requirements of the Corporations Act 2001 in relation to the audit; and Any applicable code of professional conduct in relation to the audit.
Paul Cheeseman Partner
BDO East Coast Partnership Sydney, 25 February 2019
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
8
61
Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au
Level 11, 1 Margaret St Sydney NSW 2000 Australia
To the members of Blacktown Workers Club Limited
Report on the Audit of the Financial Report Opinion We have audited the financial report of Blacktown Workers Club Limited (the Company), which comprises the statement of financial position as at 31 December 2018, the statement of profit or loss and other comprehensive income, the statement of changes in members’ funds and the statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies, and the Directors’ declaration. In our opinion the accompanying financial report of Blacktown Workers 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 31 December 2018 and of its financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.
Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other information The Directors are responsible for the other information. The other information obtained at the date of this auditor’s report is information included in the Directors’ report and the President’s Report, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO (Australia) Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO (Australia) Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
62
9
If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: http://www.auasb.gov.au/auditors_files/ar1.pdf. This description forms part of our auditor’s report. BDO East Coast Partnership
Paul Cheeseman Partner 25 February 2019
11
63
BLACKTOWN WORKERS CLUB LIMITED DIRECTORS’ DECLARATION
The Directors of Blacktown Workers Club Limited declare that: (a) In the Directors’ opinion the financial statements and notes set out on pages 69 to 86, are in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the company’s financial position as at 31 December 2018 and of its performance, for the financial year ended on that date; and (ii) Complying with Australian Accounting Standards – Reduced Disclosure Requirements and Corporations Regulations 2001. (b) There are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of the Directors.
Dated at Blacktown this 25th day of February 2019
Kay Kelly President
64
BLACKTOWN WORKERS CLUB LIMITED DIRECTORS’ REPORT
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2018 NOTE Revenue Sale of goods Rendering of services Other revenue
2018 $
2017 $
8,391,283 45,680,302 968,673
8,481,764 44,075,661 1,200,049
Total revenue
1
55,040,258
53,757,474
Other income
1
136,030
127,647
2
(3,300,162) (13,354,995) (8,470,072) (1,642,923) (4,128,166) (11,344,023) (4,035,479) (556,560) (2,839,458)
(3,359,952) (13,988,452) (8,504,663) (1,613,181) (4,246,152) (11,033,893) (4,210,180) (415,367) (3,011,241)
(49,671,838)
(50,383,081)
5,504,450
3,502,040
(556,718)
(262,997)
4,947,732
3,239,043
-
-
4,947,732
3,239,043
Expenses Raw materials and consumables used Employee benefits expense Depreciation expense Grants paid Marketing and promotional expenses Poker machine licences and taxes Property expenses Contractor expenses Other expenses
2
Total expenses Profit before income tax Income tax expense Net profit after income tax expense attributable to members Other comprehensive income Total comprehensive income for the year attributable to members
3(a)
The Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes set out on pages 69 to 86.
65
BLACKTOWN WORKERS CLUB LIMITED
Statement of Financial Position As at 31 December 2018 2018 $
2017 $
ASSETS Current Assets Cash and cash equivalents Trade and other receivables Inventories Prepayments Deposits paid Financial asset – Clubs 4 Fun
10,836,531 291,007 334,959 669,393 62,501 50,000
17,569,219 313,002 380,938 661,579 76,257 -
Total Current Assets
12,244,391
19,000,995
4 3(c) 5
116,403,764 141,365 889,596 117,434,725 129,679,116
105,357,584 140,590 889,596 106,387,770 125,388,765
6 3(b) 8 9
3,799,228 37,317 2,448,366 120,000 223,434 6,628,345
4,155,394 269,241 2,560,659 120,000 247,550 7,352,844
8 9
132,099 1,849,057 695,133 2,676,289 9,304,634 120,374,482
119,510 1,848,498 641,163 2,609,171 9,962,015 115,426,750
120,374,482 120,374,482
112,187,707 2,591,753 115,426,750
NOTE
Non-Current Assets Property, plant and equipment Deferred tax assets Intangible assets Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Current tax liabilities Employee benefits Other provisions Income received in advance Total Current Liabilities Non-Current Liabilities Employee benefits Provisions Income received in advance Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS MEMBERS’ FUNDS Retained profits Equity reserve TOTAL MEMBERS’ FUNDS
The Statement of Financial Position should be read in conjunction with the accompanying notes set out on pages 69 to 86. 66
BLACKTOWN WORKERS CLUB LIMITED
Statement of Changes in Members’ Funds For the Year Ended 31 December 2018 RETAINED EARNINGS $ Balance at 1 January 2017
TOTAL EQUITY $
EQUITY RESERVE $
109,595,954
2,591,753
112,187,707
3,239,043
-
3,239,043
-
-
-
3,239,043
-
3,239,043
112,834,997
2,591,753
115,426,750
4,947,732
-
4,947,732
-
-
-
Total comprehensive income for the year
4,947,732
-
4,947,732
Transfer between reserves
2,591,753
(2,591,753)
-
120,374,482
-
120,374,482
Net profit for the year Other comprehensive income for the year Total comprehensive income for the year Balance at 31 December 2017
Net profit for the year Other comprehensive income for the year, net of tax
Balance at 31 December 2018
The Statement of Financial Position should be read in conjunction with the accompanying notes set out on pages 69 to 86. 67
BLACKTOWN WORKERS CLUB LIMITED
Statement of Cash Flows For the Year Ended 31 December 2018 2018 $
2017 $
59,706,586 (47,188,308) 782,867 185,806 (789,417)
57,789,154 (46,791,747) 435,431 764,618 (349,054)
12,696,534
11,848,402
Cash Flows From Investing Activities Proceeds from sale of property, plant and equipment Payment for property, plant and equipment Payment for financial assets
173,844 (19,554,066) (50,000)
245,530 (17,363,845) -
Net cash outflow from investing activities
(19,430,222)
(17,118,315)
Net decrease in cash and cash equivalent
(6,732,688)
(5,269,912)
Cash and cash equivalent at the beginning of the financial year
17,569,219
22,839,132
10,836,531
17,569,219
NOTE Cash Flows From Operating Activities Receipts from customers Payments to suppliers and employees Interest received Rent received Income taxes paid Net cash inflow from operating activities
Cash and cash equivalent at the end of the financial year
The Statement of Financial Position should be read in conjunction with the accompanying notes set out on pages 69 to 86.
68
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements For the Year Ended 31 December 2018 About this report Blacktown Workers Club Limited is a company limited by guarantee, incorporated and domiciled in Australia and is a non-for-profit entity for the purposes of preparing the financial statements. The financial statements are for Blacktown Workers Club Limited as a standalone legal entity. The financial statements were approved for issue by the Directors on 25 February 2019. The financial statements are general purposes financial statements which: • • • • • •
Have been prepared in accordance with the requirements of the Corporations Act 2001 and Australia Accounting Standards – Reduced Disclosure Requirements of the Australia Accounting Standards Board; Have been prepared under the historical cost convention; Are presented in Australian dollars; Where necessary comparative information has been restated to conform with changes in presentation in the current year; and Adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to the operations of the Company and effective for reporting periods beginning on or after 1 January 2018. Have been prepared on a going concern basis.
The notes to the financial statements The notes include information which is required to understand the financial statements and is material and relevant to the operations, financial position and performance of the company. Information is considered material and relevant if, for example: • The amount in question is significant because of its size or nature; • It is important for understanding the results of the company; • It helps to explain the impact of significant changes in the company’s business – for example, acquisitions and impairment write downs; and • It relates to an aspect of the Company’s operations that is important to its future performance Significant and other accounting policies that summarise the measurement basis used and are relevant to an understanding of the financial statements are provided throughout the notes to the financial statements. Critical Accounting Judgements, Estimates and Assumptions In the process of applying the company’s accounting policies, management has made a number of judgements and applied estimates of future events. Judgements and estimates that are material to the financial statements include: Estimation of useful lives of assets Intangible Assets Long service leave liability Mortality Fund Provision
Note 4 Note 5 Note 8 Note 9
69
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements For the Year Ended 31 December 2018
2018 $
2017 $
4,816,004 3,575,279
4,869,092 3,612,672
8,391,283
8,481,764
43,910,278 355,956 526,448 406,220 481,400
42,759,397 369,059 55,656 419,952 471,597
45,680,302
44,075,661
Other Revenues Interest received Rent received
185,806 782,867
435,431 764,618
Total other revenue
968,673
1,200,049
55,040,258
53,757,474
136,030
127,647
55,176,288
53,885,121
1 REVENUE Sale of Goods Revenue Bar sales Catering sales
Rendering of Services Revenue Poker machines – net clearances Members’ subscriptions Entertainment, promotions and sundry income TAB and Keno sales Commission received
Total Revenue Other Income Net gain on disposal of non-current assets Total Revenue and Other Income
The Statement of Financial Position should be read in conjunction with the accompanying notes set out on pages 69 to 86.
70
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018 1 REVENUE (continued) Revenue Recognition Revenues are recognised at fair value of the consideration received or receivable net of the amount of goods and services tax (GST) payable to the taxation authority. Exchanges of goods or services of the same nature and value without any cash consideration are not recognised as revenues. Sale of Goods Revenue from the sale of goods comprises revenue earned from the provision of food, beverage and other goods and is recognised (net of rebates, returns, discounts and other allowances) on the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods. Rendering of Services Revenue from rendering services comprises revenue from gaming facilities together with other services to members and other patrons of the Club and is recognised when the services are provided. Interest Revenue Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rate inherent in the instrument. Rent Revenue Rent revenue is recognised on a straight-line basis over the lease term. Lease incentives granted are recognised as part of the rental revenue. Contingent rentals are recognised as income in the period when earned. Other Income Other revenue is recognised when it is received or when the right to receive payment is established.
71
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
2 EXPENSES Profit before income tax including the following specific expenses:
2018 $
2017 $
3,300,162
3,359,952
Buildings and improvements Plant and equipment Poker machines
3,697,922 2,497,249 2,274,901
3,674,977 2,536,769 2,292,917
Total depreciation and amortisation
8,470,072
8,504,663
(99,704)
130,125
1,036,690
1,073,719
Cost of sales
Depreciation
(Profit)/ loss from movements in provision for employee benefits
Defined contribution superannuation expense
SIGNIFICANT JUDGEMENTS (i) Estimation of Useful Lives of Assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Revenue Recognition
72
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018 3 INCOME TAX
2017 $
2018 $
(a) Income Tax Expense - The Income Tax Assessment Act, 1997 (amended) provides that under the concept of mutuality Clubs are only liable for income tax on income derived from non-members and from outside entities.venue Recognition
The amount set aside for income tax in the Statement of Profit or Loss and Other Comprehensive Income has been calculated as follows:
Current income tax applicable at rate of 30% (Increase)/decrease in deferred tax
557,493 (775)
258,623 4,374
Income tax attributable to operating profit
556,718
262,997
269,241 (789,417) 557,493
359,672 (349,054) 258,623
37,317
269,241
141,365
140,590
141,365
140,590
140,590
144,964
775
(4,374)
141,365
140,590
(b)
Current Tax Liabilities Movements during the year: Balance at beginning of year Income tax paid Current year’s income tax expense on profit
(c)
Deferred Tax Assets
The balance comprises temporary differences attributable to: Amounts recognised in profit or loss Employee benefits
Net deferred tax assets Movements: Opening balance at 1 January 2018 Debited/(credited) to the Statement of Profit or Loss and Other Comprehensive Income Closing balance at 31 December 2018
73
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
3 INCOME TAX (continued) Recognition and Measurement The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the applicable income tax rate, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and the adjustment recognised for prior periods, where applicable. The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entity’s which intend to settle the claim simultaneously. Mutuality Principle The company calculates its income in accordance with the mutuality principle which excludes from income, any amounts of subscriptions and contributions from members, and payments received from members for particular services provided by the Club or association, e.g. poker machines, bar and dining room service in the case of social Clubs. The Commissioner of Taxation accepts this method of calculating income as appropriate for recognised Clubs and associations. Amendments to the Income Tax Assessment Act 1997 ensure social Clubs continue not to be taxed on receipts from contributions and payments received from members.
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BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
4 PROPERTY, PLANT AND EQUIPMENT Freehold land At cost Buildings At cost Accumulated depreciation
Total Land and Buildings
Plant and equipment At cost Accumulated depreciation Total Plant and equipment
Poker machines At cost Accumulated depreciation Total Poker machines
Total capital works in progress At cost
Total property, plant and equipment net book value
2018 $
2017 $
3,686,680
3,686,680
115,621,361 (47,917,074) 67,704,287
115,531,595 (44,219,152) 71,312,443
71,390,967
74,999,123
38,950,386 (31,232,300)
38,119,050 (28,734,887)
7,718,086
9,384,163
19,456,998 (13,947,277)
18,770,046 (12,582,792)
5,509,721
6,187,254
31,784,990
14,787,044
116,403,764
105,357,584
75
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
Valuation An independent valuation by Andrew Nock Pty Limited of the company’s properties being the land and buildings was carried out in December 2018 with an effective date of December 2018 on the basis of open market value for existing use resulted in a valuation of $149,440,000. As the properties are recorded at cost the valuation has not been brought to account.
2018 $
2017 $
Reconciliations Movements in carrying amounts Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year are set out below: Buildings Carrying amount at beginning of year Additions Transfer from WIP Depreciation expense
Carrying amount at end of year
76
171,312,443 76,024 13,742 (3,697,922)
73,863,455 1,008,705 115,260 (3,674,977)
67,704,287
71,312,443
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
4 PROPERTY, PLANT AND EQUIPMENT (continued)
2018 $
2017 $
Reconciliations (continued) Plant and Equipment Carrying amount at beginning of year Additions Depreciation expense Disposals
9,384,163 836,332 (2,497,249) (5,160)
10,887,462 1,112,744 (2,536,769) (79,274)
7,718,086
9,384,163
6,187,254 1,630,022 (2,274,901) (32,654)
6,040,052 2,478,728 (2,292,917) (38,609)
5,509,721
6,187,254
Capital Works in Progress Carrying amount at beginning of year Additions Transfers to buildings
14,787,044 17,011,688 (13,742)
2,160,214 12,742,090 (115,260)
Carrying amount at end of year
31,784,990
14,787,044
Carrying amount at end of year Poker Machines Carrying amount at beginning of year Additions Depreciation expense Disposals Carrying amount at end of year
The land holdings of Blacktown Workers Club Limited are classified as either core or non-core properties, as listed below: Core properties • Workers Blacktown Club premises, air-bridge and airspace at 55 Campbell Street, Blacktown • Multi-storey car park at Colo Lane, Blacktown • Workers Sports Club premises and car park and sporting facilities at 170 Reservoir Road, Blacktown excluding part of the land comprised in certificate of title 201/880404 held as non-core property per page 78 • Hubertus Club premises at Adams Road, Luddenham 77
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018 4 PROPERTY, PLANT AND EQUIPMENT (Continued) Non-core Properties • • • • •
Sporting Fields at Walters Road, Blacktown Ground level car park at Colo Lane, Blacktown 34 Campbell Street, Blacktown 52 Campbell Street, Blacktown Part of the land comprised in certificate of title 201/880404 known as 170 Reservoir Road Blacktown NSW
Recognition and Measurement All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or loss during the financial period in which they are incurred. Useful lives are estimated as follows: Buildings 40 years Plant and Equipment 5-15 years Poker Machines 4-5 years The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each Statement of Financial Position date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the profit or loss. Capital works in progress are the cost incurred to date for capital projects that are underway at reporting date. Capital works in progress are not depreciated until they are ready for use and allocated to the appropriate asset category. Impairment of Assets Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. 78
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
5 INTANGIBLE ASSETS Poker machine entitlements At cost Accumulated impairment losses
2018 $
2017 $
247,000 -
247,000 -
247,000
247,000
Licence to occupy holiday units
642,596
642,596
Total intangibles
889,596
889,596
Licences The amount represents the costs incurred in acquiring licences at certain holiday units in Sussex Inlet, Fingal Bay and Uranga.
Recognition and Measurement Poker Machine Entitlements Poker machine entitlements are considered to be intangible assets with an indefinite life as there is no set term for holding the entitlements. As a result, the entitlements are not subject to amortisation. Instead, poker machine entitlements are tested for impairment annually and are carried at cost less accumulated impairment losses. Poker machine entitlements are not considered to have an active market, hence the fair value is calculated using the value in use method based on management’s 5 year forecasts. Licences to Occupy Holiday Units Licences held by the company are considered to be intangible assets with an indefinite life as there is no set term to the contractual agreement. As a result, the licences are not subject to amortisation. Instead the licences are tested for impairment annually and are carried at cost less accumulated impairment losses.
79
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
6 TRADE AND OTHER PAYABLES Trade creditors Goods and Services Tax (GST) payable Other creditors and accruals
2018 $
2017 $
1,821,389 313,348 1,664,491
2,293,064 229,398 1,632,932
3,799,228
4,155,394
Recognition and Measurement These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.
7 FINANCIAL LIABILITIES
2018 $
2017 $
Financing Arrangements The company has access to the following lines of credit: Total facilities available and unused: Bank overdraft Line of credit
10,000,000
500,000 -
10,000,000
500,000
Security over the financial liabilities consists of: •
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Registered mortgage by Blacktown Workers Club over land and Club premises situated at 55 Campbell Street, Blacktown NSW
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 208 8 EMPLOYEE BENEFITS Current Non-current
2018 $
2017 $
2,448,366 132,099
2,560,659 119,510
2,580,465
2,680,169
The present value of employee benefits not expected to be settled within 12 months of reporting date have been calculated using the following weighted averages: Assumed rate of increase in wage and salary rates 1.8% Discount rate 3.81% Significant judgements Long Service Leave Provision The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect to all employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases through promotion and inflation have been taken into account. Recognition and Measurement Wages and Salaries, Annual Leave and Sick Leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave are recognised in other payables with respect to employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. Long Service Leave The provision for employee benefits relating to long service leave represents the present value of the estimated future cash outflows to be made resulting from employees’ services provided to reporting date. The provision is calculated using expected future increases in wage and salary rates including related on-costs and expected settlement dates based on turnover history and is discounted using the market yields on national government bonds at reporting date which most closely match the terms of maturity with the expected timing of cash flows. The unwinding of the discount is treated as long service leave expense. Superannuation Plan The company contributes to several defined contribution superannuation plans. Contributions are recognised as an expense as they are made. The company has no legal or constructive obligation to fund any deficit. 81
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018 9 PROVISIONS
2018 $
2017 $
Current Mortality Fund
120,000
120,000
Non-Current Mortality Fund
1,849,057
1,848,498
Carrying amount at the beginning of theyear Contributions to the fund Payments from the fund
1,968,498 97,859 (97,300)
1,991,782 88,516 (111,800)
Carrying amount at the end of the year
1,969,057
1,968,498
Recognition and Measurement The valuation of the Mortality Fund liability was performed by Professional Financial Solutions Pty Ltd as at 31 December 2015. The Fund’s liability is calculated for the death benefit of an average of 15 years discounted at 2%. The Fund is a closed fund. Per the charter, a valuation is required every 5 years. Significant judgements (i) Mortality Fund Provision A mortality fund provision is recognised based on the estimated future cash outflows to members of the mortality fund. The provision is based on the maximum amount payable on the death of a member. The maximum amount payable is determined by the company’s constitution.
82
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
2017 $
2018 $
10 COMMITMENTS Capital Expenditure Commitments Buildings Contracted but not provided for and payable: Within one year
3,516,580
16,867,146
11 KEY MANAGEMENT PERSONNEL DETAILS (a Directors The following persons were non-executive Directors of the company during the financial year: •James Buckley •Kay Kelly •Robert Vincent
•Gary Callaghan •Jack Miller
•Pat Collins •Terry O’Loughlin
•Ange Humphries •George Vella
(b) Other Key Management Personnel The following persons also had authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly during the 2018 financial year: Name Position Dale Hunt Group Chief Executive Officer / Company Secretary (Appointed 14 May 2018) Brad Woodhead Group Operations Manager / Company Secretary (Resigned 6 Nov 2018) Frank Raiti Group Chief Financial Officer Shelley Fletcher Group HR Manager Anneke Lemmerman Group Strategic Manager (Appointed 26 Sep 2018) (c) Key Management Personnel Compensation Benefits and payments made to the Directors and Other Key Management Personnel
2018 $ 1,057,424
2017 $ 996,904
83
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018
2018 $
2017 $
12 RELATED PARTIES Key Management Personnel Disclosures relating to key management personnel are set out in Note 11. Directors’ Transactions with the Company A Director of the company, K Kelly, has an interest in a promotions company, which offers services to the company under normal commercial terms and conditions. The value of the transactions during the year with Directors and their Director related entities were as follows: Director Director Related Entity Transaction 2018 $ K Kelly Tovemint Pty Limited Promotions expense 128,526
2017 $ 136,879
During the year 2 relatives of S Fletcher, Group HR Manager of the Club, were employed by Blacktown Workers Club Limited and received wages within normal employee terms and conditions. From time to time Directors of the company may purchase goods from the company or participate in other Club activities. These purchases and participations are on the same terms and conditions as those entered into by any other member of the Club. Apart from the details disclosed in this note, no Director has entered into a material contract with the company since the end of the previous financial year and there were no material contracts involving Directors’ interests subsisting at year end. 13 COMPANY DETAILS The Club is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the company, every member of the company undertakes to contribute an amount limited to $2 per member in the event of the winding up of the company during the time that he is a member or within one year thereafter. At 31 December 2018 there were 55,066 members. The registered office of the company is 55 Campbell Street, Blacktown NSW 2148. 14 EVENTS SUBSEQUENT TO REPORTING DATE There are no matters or circumstances that have arisen since the end of the financial year that have significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years.
84
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018 15 SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES (a) Cash and Cash Equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (b) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian Taxation Office is included as a current asset or liability in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Taxation Office. (c) Trade and Other Receivables Trade debtors and other receivables represent the principal amounts due at reporting date plus accrued interest and less, where applicable, any unearned income and provisions for doubtful accounts, including expected credit losses, as per AASB 9. (d) Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs. (e) Fair Value Estimation The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for disclosure purposes. The fair value of financial instruments traded in active markets such as trading and available-for-sale securities is based on quoted market prices at the Statement of Financial Position date. The quoted market price used for financial assets held by the company is the current bid price; the appropriate quoted market price for financial liabilities is the current ask price.
85
BLACKTOWN WORKERS CLUB LIMITED
Notes to the Financial Statements (continued) For the Year Ended 31 December 2018 15 SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES (Continued) (f) Customer Loyalty Program The company operates a loyalty program where customers accumulated points for dollars spent. The award points are recognised as a separately identifiable component of the initial sale transaction, by allocating the fair value of the consideration received between the award points and the other components of the sale that the award points are recognised at their fair value. Revenue from the award points is recognised when the points are redeemed. The amount of revenue is based on the number of points redeemed relative to the total number expected to be redeemed. (g) Financial Assets The company made an investment in Clubs 4 Fun, being shares in a company held for the sole purpose of producing an intangible asset. The asset is not yet completed and further investment will be required. A useful life has not yet been assigned as the asset is still under development.
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WORKERS BLACKTOWN 55 Campbell Street, Blacktown 2148 WORKERS SPORTS 170 Reservoir Road, Blacktown 2148 HUBERTUS COUNTRY CLUB 55 Adams Road, Luddenham 2745 www.workersclub.com.au