CYCSA Annual Report 2013-2014

A N N U A L

R E P O R T

2013 – 2014

C R U I S I N G YA C H T C L U B O F S O U T H A U S T R A L I A

Club Sponsors

Membership

The CYCSA thanks its sponsors for their support during 2013/2014:

As at 31.05.2014 Life 6

Platinum • Phil Hoffmann Travel • Southern Quarries

Foundation 25 Senior 503

Gold • Ziptrak

Port Vincent Senior

50

Silver • Robert Oatley Vineyards • Iocane • Yalumba Family Vignerons

Member 131

Corporate • Port River Marine • R Marine • Sportsmed SA • Central Audio Visual • Charlesworth Nuts

Intermediate 6

NMAFC Members

4

Racing 211

Associate/Family 56 Youth 4 Junior 39 Total 1035

Club Supporters • EverettBrookes Custom Jewellery • SALife Channel 7 / Vislex • The Stag • Haese Marine / Bavaria • Custom Cartons • Living Colour Plants • Canegrass Saltbush Lamb

Cruising Yacht Club of South Australia Inc. Lady Gowrie Drive North Haven South Australia PO Box 1020 North Haven SA 5018 Telephone: 08 8248 4222 Facsimile: 08 8248 5888 Email: reception@cycsa.com.au Web: www.cycsa.com.au Cruising Yacht Club of South Australia Annual Report for 2013/14

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Contents Administration 4 Board Committees

4

Club Committees

4

Club Association Committees

4

Life Members

4

Board of Management

5

Flag Officers

5

President’s Report

6

Treasurer’s Report

8

Commodore’s Report

10

Finance, Audit and Risk Committee Report

12

Facilities Committee Report

13

CYCSA Marine Academy Advisory Committee Report

14

Membership Services, Sponsorship and Recruitment Committee Report

16

Groundswell Editorial Committee Report

18

Fishing Association Report

19

Cruising Association Report

21

Social Activities Association Report

22

Racing Association Report

24

Club Structure

26

CYCSA Inc and Controlled Entities Financial Report

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Administration

Committees

Chief Executive Officer Craig Evans Finance Manager Marina Segodina Administration & Operations Manager Jenny Krogdahl Comms and Membership Services Laura Turner Administration and Leasing Mellissa Vahoumis Receptionist Angela Christofis Racing Manager Jess Hargreaves Gardener Robert Gray Maintenance Shanan Gilchrist Maintenance Andy Tanner Maintenance Gary Cavendar Maintenance David Holmes Food and Beverage Manager Mario Cataldi Head Chef Dorian Molga Second Chef Kim Tran Port Vincent Manager Rob Marner Marine Academy Coordinator Matt Young

BOARD COMMITTEES Audit Committee Chair Peter Hall

Wayne Coonan, Chris Wood, David Hughes (until March), Don Venn, Robert Ferguson, Craig Evans (by invitation)

CYCSA Marine Academy Chair Rowland Richardson Andrew Saies, Geoff Boettcher, Andy Shipp, Rod Hunter, Brett Yardley, John Edwards, Peter Hendy, Craig Evans, Jess Hargreaves, Laura Turner

Facilities Committee Chair David Murray

Graham Meyers, Geoff Boettcher, Craig Evans

Membership Committee

David Knights, Martyn Heffernan, Jacqu Heffernan, Trevor Kipling

Member Services, Sponsorship and Recruitment Committee

Club Associations

Chair Wayne Coonan and Sam Tolley

Geoff Catt, Craig Evans, Laura Turner

Cruising Association Committee

CLUB COMMITTEE

Chair Richard Lea

Graham Patterson, Roger Flint, Mike Draper, Mike Holmes, Terry Nicholas, John Sibly

Groundswell Editorial Committee

Gay Footer, Owen Mace, Laura Turner

Fishing Association Committee Chair Glenn Spear (until May), John Colella (from May) Peter Newmarch, Geoff Wiggins, Henry Garner, Bruce Tasker, Leica Theodore, Romeo Macolino, Vlad Humeniuk, Barrie Willoughby

Racing Association Committee Chair Traci Ayris

William Strangways, Brenton Pegler, Roger Nicolson,

John Gibson, Mark Hutton, Rob Sellick, Adrian Wottan, Shevaun Bruland

Social Activities Association Committee Chair Pam Humeniuk

Sandra Richards, Morag Draper, Karen Johns, Anne Burrow, Don Guy, Joe Mezzini, Polli Woods, Deb Kassebaum, Jacq Heffernan

Other Associations The Cruising Yacht Club of SA is a member of the following Associations: Boating Industry Association of SA, Marina Industries Association, Clubs SA, Yachting Australia, Yachting South Australia, Australian Bridal Industry Academy, Good Sports, STARCLUB, Recreation SA.

Cruising Yacht Club of South Australia Annual Report for 2013/2014

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Life Members Arthur F Carolan Richard H Fidock AO Graeme L Footer John Gerard James A Henry (deceased) Malcolm A Kinnaird AC Peter J Page

Board of Management

Andrew Saies President

Chris Wood Treasurer

Wayne Coonan

Graham Meyers

David Murray

Sam Tolley

Peter Hall

Chief Executive Officer

Craig Evans

Flag Officers

Geoff Catt Commodore (until 11.13)

Geoff Boettcher Commodore (from 11.13)

Rowland Richardson Vice Commodore 5

David Knights Rear Commodore

Cruising Yacht Club of South Australia Annual Report for 2013/2014

President’s Report Finances and Membership The consolidated entities at the Club before depreciation again show a very healthy surplus this year and ahead of last year’s surplus. This has largely come about as a consequence of the cash reserves held for expenditure on the new Western Marina breakwater which started construction later then was originally budgeted for.

However aside from the delays in the commencement of construction this contract will proceed in accordance with the advice that I gave to all members in a letter midway through the financial year. At the eleventh hour a change in the supplier of rocks for the project not only kept the contract price to the original price but resulted in some very generous sponsorship from Southern Quarries to the Club. I would like to thank and acknowledge the contribution and involvement of Brett Brown, Club member from Southern Quarries who was instrumental in assisting the Club with this commercial arrangement and the sponsorship that followed on from this.

The total membership numbers at the end of May represents a decrease of 56 on the previous financial year and a slight decrease on budget and racing membership accounts for half of the loss of members. Total marina berths listed for sale have increased while at 80 percent for berths leased, this figure is at the upper historical benchmark for leasing. Boat sales and new boat activity in the Club remain fairly static with only minor changes in racing fleet numbers and new power or sail boats in the Club.

Management have worked hard with a range of new membership initiatives to try and encourage membership, leasing and particularly hardstand berth ownership and these have met with small but limited success. In short the recreational boating market and the demand for premium quality boating club membership facilities remain small in South Australia at this point in time. Management also continue to pursue corporate and social function clients with the aim of increasing utilisation of the hospitality facilities and increasing Club revenue.

Board Activity Peter Hall completed his first twelve months term as a Director. As a lawyer, Peter is able to provide initial advice on the various matters that come before Management and Board saving the Club on many occasions valuable dollars that would be otherwise expended on external legal advice. As I have previously reported, most matters that come before the Board now need a careful legal and risk assessment before the Board responds. This unfortunately is even the case when responding to members’ comments or questions. The Board has seen examples where a considered Board response is not accepted and is challenged by a member often forwarding their own legal or accounting opinion as the basis for disputing the Board view.

As of November Geoff Boettcher took over from Geoff Catt as Commodore and has very quickly been a positive contributor to the life of the Club with new ideas and observations that will only make this Club better for all members. With full Board approval and support Geoff has initiated a voluntary donation program where members are asked to support the Club through the Australian Cruising Yacht Club of South Australia Annual Report for 2013/2014

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Sports Foundation or by way of direct donation to the Club. This is a practice that has been undertaken in other clubs such as Sandringham and CYCA in Sydney for many years and has been successful in providing much needed funds for various specific boating and youth development programs within those clubs. RSAYS has also had such a program in place for some time. Small donations from many members can make a huge difference and so I commend this program to you all. The sports boat program which sought major sponsorship or donations has been put on hold in favour of this more broad based fundraising effort.

Geoff has been well supported and assisted by Vice Commodore Rowley Richardson and Rear Commodore David Knights. Rowley also continues chairing the Marine Academy Advisory Committee.

His report will be presented as part of the AGM. From a Board perspective the Marine Academy has reached some significant milestones with full RYA/YA accreditation in place as a training centre allowing us to roll out a much wider range of certified courses and programs. Again the Adelaide market is small and finding the right programs that meet the needs and expectations of the various groups in the community seeking this type of instruction or experience is an ongoing challenge.

I will remind members that successive Boards over the last five years have made an active decision to invest in the Academy as an important part of the future development strategy of the Club. As an increasing number of non members participate in Academy courses there is both the potential and the very real outcome of converting these people into Club membership in the future. Thank you Rowley for continuing to steer this committee in the right direction, and to CYCSA Management in Matt Young, Craig, Laura, Jess, and all of the instructors for their commitment to this vision.

The Board has had two or three extended meetings this year in which the long term cash flow and profit loss projections for the Club out to ten years have been formulated. A variety of inputs and outputs have been built into these financial models and with the help of our auditors Dean Newbery and Partners we will very soon have these projections under best case, worse case and most likely case scenarios. Once these models are presented the Board will be able to upgrade or downgrade these models according to circumstances as they unfold over the next ten years. Currently our single biggest commitment will be to the loan repayments on the borrowing for the Western Marina Breakwater project. Unless additional revenue sources are found or assets realised the Club is constrained in its ability to pursue any other infrastructure projects at this time.

Over and above the normal annual revenues the Board continues to look for other sources of revenue for the Club but members would appreciate in the Adelaide market that these opportunities are limited.

After much deliberation the Board, Management and Associations have developed and agreed on a sponsorship template that sets out a range of opportunities and recognition at various levels of financial contribution that provides sponsors with fairness around their exposure, benefit packages and recognition within Associations

and the Club. This provides an exciting platform to put to and reward existing sponsors as well as being the central document by which Management or members can introduce and sign up new sponsors.

The Board shares a view that the next infrastructure priority is the renovation of the bar, dining room and patio area in keeping with the previous master infrastructure plan developed by Woods Bagot and the Club about five years ago. The Board’s general aim is to try and retain additional surpluses generated out of Club and Association operations in order to save funds for this project at some point in the future.

The Club’s other single biggest infrastructure priority is to repair and progressively replace Marina East pontoons and walkways as and when they deteriorate. The Club has employed in-house marina maintenance expertise and this program continues to be progressed within budgeted expenditure each year. Understandably more is being budgeted to this program each year.

At the time of writing Graham Meyers has elected to not renominate for a Board position. I would like to acknowledge and thank Graham for his contribution to Board activities over the last two years. In particular he oversaw the Western Marina Breakwater project documentation and contracts and bought some real commercial development knowledge into these deliberations and negotiations. Graham’s personal and professional commitments over the last few months have brought him to the decision to not re-nominate at this point in time.

It is fair to say that the aftermath of the Marina West development has not been plain sailing. Successive boards have spent considerable time working through a variety of issues and challenges that have arisen since the marina opened. These have been previously reported to members to the extent that confidentiality and commerciality would allow.

At the time of writing this report the extended Marina West inner breakwater is under construction and due for completion later this year. This breakwater will improve the wave climate considerably within the North Haven basin and particularly in relation to the outer berths in Marina West. The Club has been unsuccessful in obtaining Ministerial approval for the SABFAC approved funding for this project. This remains an issue of tension between the Club and the returned Labor Government and an issue which the boating industry representative group in South Australia continues to advocate for us on our behalf. John Darley Independent MLC has also been active in supporting our case for receiving this SABFAC funding.

The Board continues to explore with all relevant stakeholders opportunities for premium financial realisation of the assets in and around the boat ramp area.

Council Rates Finally I can report some good news under this heading. Again I have communicated to berth owners throughout the year on this subject.

The appropriate amendment to the Local Government Act went through Parliament last year and has been gazetted accordingly. This has not stopped the Port Adelaide Enfield Council from continuing

to look for ways to maximise rates levied on marina and hardstand berths. Although some berth owners may still see the new rates as being an unfair increase, what has been achieved through the amendment of the act and the reality of what owners would have been charged on their berths now and on an ongoing permanent basis, is around 50% less on average compared to what would have been the case if the Club had not persisted with getting the Local Government Act amended in this way. Our members with berths in Port Vincent will also benefit from the change in legislation and because the District Council of Yorke Peninsula had already transitioned to full rates a number of years ago their saving will be significant and on average they will only pay around 30% of what they paid last year. Members and berth owners should recognise and appreciate the efforts of Club Management, particularly Craig Evans, and the Board for persisting with this reform that is fair and equitable.

In short, the Club and its berths will be rated as an entire entity. The Club will pay the rate levied by Council. The Club will collect rates from individual berth owners invoiced to berth owners at the time of collecting membership and corporate fees.

Volunteers, Sponsors, Associations and Staff I would like to acknowledge and thank all of those volunteers who contributed to the life of the Club this year including Board Members, Flag Officers and subcommittee members. Thanks to Jenny Krogdahl for her role as Board Secretary.

I would like to acknowledge and thank again the editors of Groundswell including Gay Footer, Laura Turner, Owen Mace and Trevor Paynter.

I would like to thank the Chairs of the four Associations and their committees: Cruising, Richard Lea; Fishing, Glenn Spear and most recently John Colella; Racing, Traci Ayris and Social Activities, Pam Humeniuk.

Finally I would like to extend a sincere thanks to Craig Evans, our CEO. He oversees the day to day operations of the Club to ensure it runs smoothly meeting member expectations on a seven day per week basis. In addition he immerses himself in some of the bigger and more strategic issues and projects affecting this Club. He does it with great skill and at all times with the best interests of members and the future success of the Club in mind.

Craig also leads a team of dedicated CYCSA staff who manage our hospitality, grounds, marina and member and customer services.

Your efforts and enthusiasm are key to member satisfaction and enjoyment at the Club. Thank you to all. Can I also particularly acknowledge our hospitality and dining services team who continue to think of interesting and novel ways to get patronage into our bar and dining area. You all do a great job.

Finally to the many loyal and long term sponsors of the Club, listed at the front of this Annual Report. Thank you.

Andrew Saies, President

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Treasurer’s Report It is my pleasure to report to members on the financial activities of the Club for the 2013/14 financial year. My focus and interpretation is on the Consolidated Accounts being the Cruising Yacht Club of SA Incorporated and Controlled Entities. Full details of all the Club Entities can be downloaded from the Club’s website. Hard copies of this report and the individual Controlled Entities can be requested from Reception. It is pleasing to report that the general trading activities of the Club for the year have been strong and exceeded budget. In fact, the Club has reported its first positive Operating Surplus / Total Comprehensive Income (after depreciation costs) for many years.

Financial Reports The financial report presented in this Annual Report represents the Consolidated Position of the Club and reports on the Club’s financial performance and position for the 12 months ended 31 May 2014.

During the reporting period the Board, in conjunction with the Club’s auditors, has again considered the carrying value of the Club’s assets, in particular the remaining economic life of both Marina West and Marina East, and agreed the settings put in place last year in relation to depreciation should remain. In no way does the depreciation charge alter our view on how we provide appropriate marina assets for members’ use including appropriate ongoing maintenance and ultimate replacement.

All entities, including the Consolidated Accounts, have been audited by our new auditors Dean Newbery and Partners with unqualified reports being issued and included in this report.

The Year in Review The Club, and in particular Club Management, has financially outperformed the budgets established at the beginning of the financial year, and has been able to maintain underlying trading performance (before depreciation) in excess of levels as in the previous 2012/13 financial year. This is extremely pleasing, especially in continuing difficult economic conditions. Notwithstanding these difficult conditions, the Club has come through the 2013/14 year in good shape on raised revenue to the previous year, and has generated a positive cash flow as a result of very careful expenditure controls for both capital and operating costs.

The Club at the date of this report had no external bank borrowings, and had cash at bank and cash equivalents of $1,352,027 as at 31 May 2014.

The new budgeting system is working extremely well. Each and every area of the Club’s activities is carefully budgeted at the beginning of the year. Management are required to operate within budget (both operating and capital). The Club’s internal management financial reporting systems are now showing detailed performance against budgets and are in particular showing the net contribution to profits from each major division/operations of the Club. All expenses relating to the divisions are coded to the divisions.

The Board and Management are now able to very quickly and clearly understand the trading performance of each and every section of the Club. Depreciation expense has not been allocated to the operating divisions of the Club as the majority of the depreciation cost relates to buildings and overwater assets. Depreciation is shown in the management accounts as a ‘below the line entry’.

Cruising Yacht Club of South Australia Annual Report for 2013/2014

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Another project for the Club during the year has been the commencement of the extension of the Western Basin Breakwater.

This project is a major capital commitment. In addition to the technical planning required, the Board reviewed the various methods of funding this project and after careful cash flow planning has entered into a funding arrangement with its bankers to fund a portion of this expense by debt. The Club intends drawing down approx $850K from Westpac during the extension of the breakwater. The term of the loan is 10 years; however the Club has the option to repay this loan early without penalty if circumstances permit. The balance of the funding will come from the Club’s existing cash reserves.

During the year the Board has worked extensively with John Jovicevic, Partner, Dean Newbery & Partners to extend out its existing three year financial models to a 10 year model. This process has been extremely valuable, and has allowed the Club to review and look closely at various impacts on long term revenue streams and in particular how it can fund major capital expenditure and essential replacements.

As mentioned by the President, the Board will continue to review all assets and in particular the opportunity to possibly realise non-essential assets at a ‘premium’ and apply these funds for future essential capital upgrades/replacements, in particular the replacement of overwater assets. As at the date of this report the Board has no formal proposals to put to members.

During the year the Board met with the Associations to discuss amongst other things the various Associations budgets. The Board has agreed with the Associations to set up a specific reserve in the consolidated accounts of the Club to be applied to future clubhouse/catering/bar facilities upgrades. The impact of this is disclosed on page 30 of this document and narrated in note 13 to the accounts on page 37 – ‘transfer between reserves’. It is anticipated that as soon as cash becomes available, these funds can be applied to these essential and worthwhile upgrades. The Board thanks all of the Associations for their past and continuing fundraising. Fundraising for replacement of Club assets is seen as highly important for our Club.

All the Associations made a positive contribution to the Club for the year, including the Racing Association, which now has allocated all of the direct expenses in running its operations, including staff and the costs of running the race support boats.

There are limited methods of generating funds for essential expenditure in sporting/social clubs without incurring debt or approaching members to make extraordinary contributions. Your Board will continue to look at ways to generate new revenue streams whilst at the same time will try to run its business activities to show positive contributions that can be applied to the Club for the benefit of all members.

Corporate Fees in the 2013/14 year increased by $64,736, being 7% over the 2012/13 year. The cost increases the Club incurred during the year which needed to be recovered by the Corporate Fee included, but was not limited to; increase in repairs and maintenance (mainly Marina East) $44,490, increase in water rates

$15,508 and increase in insurance costs $16,840. Just these three (3) cost increases totalled $76,838. The 2014/15 Corporate Fees include Council Rates which will now be levied to the Club by the various councils in one invoice and will need to be recovered by the Club. Individual berth owners will no longer receive a separate invoice for Council Rates from either the Port Adelaide Enfield or Yorke Peninsula Councils. The Council rate issue has been communicated to members regularly over the past few years by the Club. I echo compliments by the President on the tireless work undertaken by Craig Evans in his negotiating with the Port Adelaide Enfield and Yorke Peninsula Councils on the marina rating matter.

Without Craig’s efforts most berths owners would be paying materially more in rates over future years.

Capital Expenditure was contained to $36,000 (excluding preparatory works for the Western Basin Breakwater project costs).

Our hospitality operations have performed extremely well over the year. Volume has increased and margins have been maintained. The contribution from hospitality is a very important part of our Club finances. During the year many of the input costs for hospitality were put to tender in order to keep costs down. Thank you to all involved.

Salaries increased by $40K. (Includes the cost to undertake marina repairs in-house)

CYCSA Marine Academy contributions have also increased and are now an important financial contributor to the Club and are without doubt a great window to increase future membership.

The Year Ahead

The financial performance of the Club included $44,855 of interest received on its cash balances. Obviously a significant proportion of the cash balance will be applied to the Western Marina Breakwater project during 2014/15.

The Club is still holding a number of unsold berths in Marina West, most of them being the larger berths. The Board does not expect any significant sales of these berths until the general economy improves. South Australia does appear to currently have a surplus of marina berths available for sale.

During the year expenditure on Marina East repairs has increased the Board has adopted a works program using our owned trained staff. Repair costs for 2014/15 are also budgeted to further increase.

The commission on turnover of existing berths sales and leasing also provided the Club with a strong contribution of $150,636. This is higher than the previous year where only $118,994 was achieved.

General capital expenditure was contained during the year to approximately $36K, and included essential expenditure for hospitality, slipway, clubhouse, and general grounds. Budgeted essential capital expenditure for 2014/15 will be materially more.

Financial Highlights Revenue has increased by $134,834 or 4.3%.

Operating Surplus/Total Comprehensive Income (after depreciation costs) was $8,345 as compared to [$55,075] in 2013/14, [$161,955] in 2012/13 and [$179,010] in 2011/12.This is a very positive and material turnaround!

Net increase in cash was $177,060 to $1,352,027 or 15%.

Trade and other payables increased by $131,856, being the effect of a creditor payment due and payable in June relating to the Western Marina Breakwater.

Total Equity increased by $151,466 as compared last year ($65,025).

Long Service Leave liability decreased by $20K. Holiday liability increased by $30K. Insurance costs increased by $17K.

Total Repairs and Maintenance increased by $45K. Net trading contribution – catering, bar & resale increased by $79K (excellent result/trend).

Unfortunately, the year ahead will continue to remain difficult.

Business sentiment continues to remains highly cautious - consumer, business, and government spending will all continue to remain tight. That fiscal environment will continue to hit hard all clubs, not just ours. The Board will continue to ensure that our financial management and reporting systems will signal any material changes at the earliest possible time.

The Western Basin Breakwater should be completed, and the Club’s cash holdings will significantly reduce as a result.

The budget for 2014/15 has been approved by the Board, and the objective is to financially perform to similar levels as this year - tight controls on expenditure, and continuing to seek new revenue streams.

Meanwhile, the costs of maintaining Marina East will continue to increase, necessary to extend its economic working life - these maintenance costs have been factored into the forecasts mentioned above. The objective must always be to take a conservative approach to the financial management of the Club. We trust members will understand this important balance and the need for the Club (as would be the case for any business or commercial operation) to recover major cost increases as applicable.

In conclusion, the Board, Management and Staff continue to work extremely well together; the chemistry and the commitment to make the Club continue to prosper is highly positive.

I look forward to the year ahead. Happy boating for 2014/15.

Chris Wood, Treasurer

Commission on berth sales increased by $31,642 or 26.6% Depreciation costs reduced to $449,348 from $474,259 the previous year.

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Commodore’s Report On Opening Day 2013 I took up the position as Commodore of the CYCSA. As this is my first Annual Report I have had to draw from my predecessor’s experience. I would like to personally thank Geoff for his assistance in helping me establish my role as Commodore of the Club.

From day one Geoff Catt made taking over the role of Commodore a little easier, however his willingness to pass on his knowledge, his enviable administration skills and his immense commitment to the Club has left me with a very hard act to follow. Geoff in fact, was willing to hold the Commodore position until my wife and I returned from an extended holiday after competing in the Fastnet Race in the UK. When I look at Geoff Catt’s serving record, I realise his high standards have left the Club with a strong legacy for all future Commodores to uphold. After five terms as Commodore, three terms as President, three terms as Treasurer and a term on the Board, Geoff’s twelve years of service to the Cruising Yacht Club in such crucial positions has most definitely helped steer the Club forward.

I have no doubt Mavis’s support helped to make Geoff’s job much easier.

Since my appointment I have attended all Board and Marine Academy Meetings. Although the Commodore has no voting rights on the Board, these meetings have given me a fast track into the workings of the Club. The position of Commodore, I believe, has more to do with listening and having a voice for its members, being involved with on-water and associated events and having a working knowledge of the difficult task Board Members have in running the logistics of the Club. To achieve ongoing success for the Club’s future it is my belief these crucial roles need to have a balanced approach.

Vice Commodore Rowley Richardson and Rear Commodore David Knight’s support and experience has been invaluable. They willingly attend functions and meetings in my absence ensuring a Flag Officer is always available.

One of my objectives as Commodore in relation to supporting our existing members is to lobby hard to the Board to upgrade our

Cruising Yacht Club of South Australia Annual Report for 2013/2014

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Clubhouse to a standard that offers members a venue of which they can be proud. I will also continue to support Rowley with the ongoing success of our Marine Academy. I believe we need to attract new members and between our excellent Academy training programs and a new modern Clubhouse, a fresh offer will help move the Club forward. Clubs, whether sailing or sports orientated will find their futures difficult if they are unable to maintain a high standard of facilities and a congenial atmosphere to their members when having to compete with what hotels are now offering. We need to retain the younger crews by having a modern ‘yachties bar’ superior to what other yacht clubs have to offer. Thankfully the sound management of the Club enables us to positively plan for our future.

I congratulate Rowley, Matt and his Instructors at the Marine Academy for their successful year. With the introduction of the tax deductible voluntary donation scheme in conjunction with the Australian Sports Foundation, we have already achieved substantial funds. These funds are paramount in maintaining safe reliable training equipment for all our vessels and current classroom equipment. I thank members who had the foresight to invest in the scheme ensuring a strong path forward for introducing new members and giving our existing members the vehicle to become proficient in all facets of sailing and powerboat handling. By having access to professional accreditation, these course pathways enable our skippers and crews to charter boats internationally.

We have experienced some excellent racing in the Club over the past season. At this stage, I believe we must continue racing using IRC handicap as our premium system. Our yachts compete interstate at a top level and while these races use the IRC handicap system we must enable crews to compete at this level. William Strangways has successfully introduced the AMS handicap system into the state with 48 yachts racing under this scheme. AMS is a little more favourable to the modern faster yachts similar to HPR used in America. It does not punish the high performance yachts as heavily. The AMS handicap system is inexpensive and results have been somewhat comparative to IRC results. At a Club level, we will still race under our PHS handicap system.

We have seen some promising new names appearing in our race results list. In Division 1 Concubine took out the prestigious Premiers Cup after a protest. Slipknot is another rising star with a win in the Great Southern Regatta and steady results throughout the season. But the winner for the season was Andrew Coletto’s consistently sailed Shining Sea. Andrew’s boat was the one to beat both inshore as SA State Champion as well as offshore. In Division 2, Peter Hall’s Locomotion, Rob Sellick’s Young Einstein and Bob Schahinger’s Freedom shared the limelight. In the J24s Doug Watson in El Fideldo took home his fair share of silverware.

CYCSA was represented in the 2013 Rolex Sydney to Hobart Race by Shining Sea. The Volunteer of the Year is rightly awarded to George Ottewell. I ‘borrowed’ the following words from the person who nominated George and sincerely concur with the nomination: “George has been a dedicated volunteer of the Racing Association since 1989, a 25 year span. His association began when his friend Bob Wannon invited him to assist on the Cougar Cat. George came along, joined the CYCSA and has been with us ever since. He was initially tasked with laying the courses on board YC02. His major role these days is displaying the race flags on CYC1 plus any other duties asked of him. George lives at O’Halloran Hill, a 40 minute drive to the Club but this does not prevent him from attending every race day, be it a Saturday, Sunday or Wednesday Twilight Race. He is incredibly dedicated and a top bloke who thoroughly deserves this accolade.”

On behalf of CYCSA Board, Flag Officers, Staff and competitors, thank you George and congratulations on achieving Volunteer of the Year. A worthy recipient.

On behalf of all the skippers and crews I would like to thank our start boats’ Duty Crews for their time and dedication in ensuring our races are run professionally and without incident. CYCSA can pride itself on running a high standard of race events thanks to these gentlemen.

The Social Activities Association, under the leadership of Pam Humeniuk, has created this year’s Commodore’s Dinner theme around the Venetian Masked Carnivale which is held each year in and around the City of Venice. I thank the Association for all their hard work, dedication and ongoing organisation in helping promote the Club. I look forward to the big night on 6 September and encourage members to book early.

Lastly I would like to particularly thank Craig and all his staff at the CYCSA for not only making me feel very welcome in the Commodore’s position, but assisting me with my administration responsibilities. I freely admit, I feel much more comfortable behind the wheel or tiller of a yacht than behind a keyboard.

Geoff Boettcher, Commodore

The position of Commodore, I believe, has more to do with listening and having a voice for its members, being involved with on-water and associated events and having a working knowledge of the difficult task Board Members have in running the logistics of the Club.

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Finance, Audit and Risk Committee Report As its title implies, the Finance Audit and Risk Committee has been established to oversee the internal control of the financial management of the Club and to maintain the integrity of its reporting procedures, the management of foreseeable risks to the financial viability of the organisation including the preservation and improvement of its assets, compliance with statutory and legal strictures and finance reporting on a regular basis, including trends, strengths and weaknesses.

The Finance, Audit and Risk Committee (the Committee) met on five occasions during the year on a formal basis, and considered and reported on matters as diverse as the audit timetable, contract management, amortisation of assets, a draft 10 year management plan, insurance of assets, formalisation of loan facilities, reduction of exposure to financial risk, and the impact of local government rates, to name but a few of the many matters within its purview.

The Committee consisted of the following members at the commencement of the current financial year: Peter Hall (Board Member and Chair), Chris Wood (Treasurer and Board Member), Wayne Coonan (Board Member), Don Venn (Senior Member), David Hughes (Senior Member), Robert Ferguson (Senior Member).

Unfortunately during the year David Hughes retired from the Committee due to pressing work and other commitments.

Eventually he was replaced by Robert Ferguson whose experience has proved invaluable and increased the depth of an already talented group of Committee members.

I would like to thank the members of the Committee for their valuable work over the past 12 months, including the contribution by the CEO, Craig Evans, who is an attendee by invitation.

Peter Hall, Chair Finance, Audit and Risk Committee

Cruising Yacht Club of South Australia Annual Report for 2013/2014

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Facilities Committee Report

The key facilities priorities over the 2013/14 year were the western basin breakwater extension and the ongoing maintenance of Marina East

Marina West The breakwater extension in the western basin was under construction at the time of writing and is due for completion by about November 2014. Currently around half of the 20,000 tonnes of rocks have been placed and include the foundation layer and core material. The large rock on the end of the existing breakwater will soon be removed so that the core in the new extension will join with the core in the original structure. Several layers of larger armour rock will then cover the inner core material. The breakwater project has also included the installation of new navigation lights that help define the re-alignment of the entrance channel into the marina.

Marina West has been having normal ‘bedding-in’ maintenance including tightening of the through-bolts.

Ongoing bird control using lasers has been having reasonable success but does involve periodic repair and maintenance of the laser equipment.

Other work in the western basin included the resurfacing of parts of the boat ramp that had deteriorated due to erosion and concrete cancer; the deteriorated concrete was cut out and patched to extend the life of the ramp.

Marina East In Marina East, various repair and maintenance processes have been underway. Jenny Krogdahl has set up a spreadsheet recording major repair works carried out on the marina, detailing each individual problem, the solution, outcome, time taken, costs of labour and materials and post-repair status of each job. Grounds staff members, in particular Shannon Gilchrist and Andy Tanner, have been dedicated to this work; they have developed skills in undertaking marina repairs and have trialled and succeeded with a range of novel and original solutions under the guidance of Craig Evans to fix marina issues. There will be continuing repair and replacement work to deal with the ageing of Marina East.

Fencing has been installed to control access to the crane wharf area by trespassers. While this presents some inconvenience to Club members using the crane wharf, it was necessary to address safety and potential liability concerns.

Another tractor which will become known as the ‘blue’ tractor has been ordered. This is a second hand tractor that is in the process of being modified to our specifications. The existing ’yellow’ tractor had been damaged by submersion during the year and had interim repairs done at no cost to the Club by Keith Flint’s Rapid Haulage workshop to get it going. When the blue tractor arrives, the yellow tractor will then be sent off for refurbishment.

When that work is complete it will be used for general towing work around the Club and will also become a back-up machine for boat launching and retrieval.

Clubhouse The Board has commissioned architects to come up with concept proposals for the re-development of the Clubhouse and in particular the bar area. The goal is to add to the pleasure and enjoyment of the Club for members and have its hospitality facilities become a major draw-card for existing and new members. Our financial planning modelling is looking to include these works within the early years of a longer term financial plan.

Preliminary architectural work by Hames Sharley is very exciting and concepts were in the process of being ’broad-sheet’ costed at the time of writing. From the outset we are looking to be able to identify an overall development that fits within the Club’s capacity to finance it. I look forward to seeing the planning work develop and expect to be able to report on this topic in detail by this time next year.

Construction of shade sails for the Club’s ceremony area is still on hold pending re-assessment of priorities and the development and costing of options for the Clubhouse upgrades but a decision on that project will need to be made before our Council approval windows close.

Over the year the lighting throughout the Club has been progressively changed to LED fittings with about 90% savings in power consumption over the old lighting fittings. A number of equipment upgrades and repairs were also done in the kitchen.

New clears for the patio area were installed at no cost to the Club, replacing the old ones that had become scratched and cloudy. The new clears and their installation were donated by Tony De Maaijer, the owner of Ziptrak, at a saving to the Club’s bottom line of about $8k. On behalf of Club members, thank you Tony. It is now a pleasure to be protected by the elements and enjoy the view over our eastern marina through fresh clears.

The driveway pavers at the entrance to the Clubhouse have been re-done as a ramp in place of the step that was a trip hazard.

Port Vincent The Port Vincent marina is now 12 years old. Repairs to the pontoon fingers continue with the key problem being at the connections between the main marina spines or walkways and the individual berth fingers. The marina builder, Pacific Pier and Pontoon, has not been helpful in providing the Club with repair specifications. However, with the recent experience and skills our grounds staff have developed at Marina East, they are now able to deal with the Port Vincent repairs as part of the general marina repair and maintenance program.

The Port Vincent BBQ shelter has not been forgotten and is budgeted for in the 2014/15 financial year.

David Murray, Chair Facilities Committee

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

CYCSA Marine Academy Advisory Committee Report On behalf of the Committee I am pleased to present the annual report of the CYCSA Marine Academy for the 2013/14 year.

The past year has been busy and successful. The development of a 12 month program and a printed Course Guide proved very worthwhile as a marketing tool and as a resource for staff.

Significant updating of the website, booking pages and booking forms, including the capacity to make online payments made it easier for prospective students to get information and to enrol as well as improving administrative efficiency. I am pleased to report changes and adjustments to staff duties have had a substantial and positive impact on our ability to market courses and follow up on previous enrolments. Matt Young has continued as Coordinator; Laura Turner is responsible for marketing and assisting with programming; Jess Hargreaves, after returning from maternity leave, has assisted with contacting instructors and students while reception staff have dealt with course inquiries.

Brett Yardley continued as Chief Instructor and Craig Evans has maintained oversight of the Academy. I thank these staff for their enthusiasm and ongoing support.

The outcome was a total of 34 courses and 207 enrolments with approximately a 32/68 split of members and non-members enrolling. The Academy now has an increased knowledge of courses that sell in South Australia with students tending to enrol in more advanced courses of longer duration. This is reflected in the increased income. The Discover Sailing promotion, an initiative of Yachting Australia, was successful in attracting a good crowd of non-members for a three hour fun sail and an introduction to the Club. Many of these people then went onto enrol in the Start Yachting course. Ten Live Aboard courses were run throughout the year. The most successful were the 3 Day Live Aboard courses with five run over the season, followed by four 2 Day Live Aboard courses and one 5 Day Live Aboard. Six Day Skipper students were congratulated on completing the requirements for their certificates while a further two completed their Essential Navigation and Safety course online and four completed the International Certificate of Competence assessment. Andy Shipp conducted the shorebased theory courses with the Marine Radio course being the most popular while the safety courses continue to attract good numbers. Support for Ocean View College’s sailing program continues with storage of their dinghies and provision of instructors.

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In line with the objective of attracting non-members to join the Club Craig Evans developed a package of offers to attract nonmembers to join by discounting their fees if enrolled in a Marine Academy course. Racing Manager Jess Hargreaves continues to find places for students who wish to race on boats while those who indicate that they want more information on the Club and owning a boat are assisted by Rod Hunter. With these initiatives it is hoped that the conversion of non-members to members will increase. A challenge for the forthcoming year is to attract more non-members to courses which will require additional expenditure to promote the Academy’s program.

Acquiring the resources required for training from the Academy’s modest operation is a challenge. To address this Geoff Boettcher and Craig Evans have established the CYCSA Marine Academy Foundation which aims to attract funds to assist with the purchase of equipment to ensure the standard of resources are appropriate for training needs. As a project registered with the Australian Sports Foundation, the CYCSA Marine Academy Foundation allows donations made in conjunction with payment of membership fees to be tax deductible.

The need to increase the number of instructors and for instructors with more advanced qualifications remains an area of concern.

However while no new instructors joined the Academy in the past year a recent call for expressions of interest in instructing has attracted several members. A review of instructor pay was completed and determined that existing remuneration is appropriate.

Financials The financial statement shows an operating surplus of $11,670 including the Coordinators’ wages. Jess Hargreaves’ contribution has not been included this year but will be in the year ahead.

Finally I wish to thank committee members Andrew Saies, Geoff Boettcher, Geoff Catt, Rod Hunter, Andy Shipp and John Edwards for their contribution and assistance and the Board for their ongoing support of the CYCSA Marine Academy.

Rowland Richardson, Chair CYCSA Marine Academy

Income Statement 2013/2014 Income SSSC $9,581.78 Safety Sunday $1,936.44 Intro Sail & WEA $9,027.25 Sail Cruising Scheme $30,881.79 Instructors Course $0.00 Youth Keelboat $0.00 RYA/YA Theory Course $12,186.36 Marine Radio Course $3,381.80 National Keelboat Scheme (NKBS) $0.00 Powerboat (NPBS) $2,943.64 Sponsorship/Fundraising $0.00 SA Water Atlas Income $197.27 Course Books Income $1,053.84 Other Income $3,633.52 ICC Income $1,281.82 Total $76,105.51

Expenses SSSC $2,789.40 Safety Sunday $808.45 Intro Sail & WEA $1,742.44 Sail Cruising Scheme $14,631.10 Instructors Course/Accreditation $0.00 RYA/YA Theory Course $7,790.93 Marine Radio Course $2,581.37 National Keelboat Scheme (NKBS) $544.80 Powerboat (NPBS) $1,984.75 Youth Keelboat $0.00 Administration $0.00 Advertising $700.00 SA Water Atlas $0.00 Course Books $2,639.77 Other expenses $3,589.62 MA Coordinator wages $13,902.24 R&M - Academy 1 $7,257.16 R&M - CYC3 $2,523.85 ICC expenses $950.00 Total $64,435.88

2013/2014 Result $11,670.00

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Member Services, Sponsorship and Recruitment Committee Report The Role of the Committee

Committee Projects

The Member Services, Sponsorship & Recruitment Committee was formed to develop a range of initiatives to enhance the services provided by the Club to our membership and to implement a ‘Whole of Club’ approach to sponsorship.

Committee Projects for the year included the following: • Trialling of improved sponsorship packages with selected sponsors

Greater promotion of marina and hardstand berth sales > Advertising on various marine and boating websites and online forums > Print publications based in metropolitan Adelaide and Port Vincent > Signage adjacent to the North Haven Boat Ramp > Membership discount packages on purchasing berths

•

Member recruitment strategies > Member renewal promotion, refer a friend competition > Special offers to Marine Academy students

•

Search Engine Marketing with Reach Local > Trail campaign focussing on entry level Marine Academy courses

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Preparation of new Advertising Kit to secure new advertisers for Groundswell

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Participation in the Clubs SA Awards of Excellence > The CYCSA was awarded Best Sporting/Community Club at the awards ceremony in November 2013, a significant achievement

The ‘Whole of Club’ approach to sponsorships increases the appeal to sponsors and the new presentation packages are a tool for Associations and indeed supportive members to secure new sponsors and to build upon existing sponsorships.

Notwithstanding what is a difficult economic climate in which to secure new sponsors the Club is now well prepared to build upon its current base. In particular it is pleasing to confirm inaugural Platinum Sponsorship members Phil Hoffmann Travel and Southern Quarries and to welcome new Gold Sponsor Ziptrak and our new Silver Sponsor, Iocane.

•

External marketing of the Club’s function and hospitality services with a noticeable increase in external function bookings

•

Market research and surveys > Restaurant satisfaction surveys > Member events survey > Survey to past Marine Academy students

•

Various improvements to the Club website, including completing implementation of the online payment processing facility and improvements to course booking process

The committee is currently considering ways in which recognition of sponsors’ support can be enhanced both within the Club and in its communications.

•

Improvements to email communications and database

•

Introduction of Twitter and Google+ social media pages.

Sponsorship The sponsorship program aims to encourage and facilitate financial and in-kind support agreements that provide mutual benefits to sponsors and the Club. These agreements are the product of initiatives from both Associations and Club Management.

As forecast in last year’s Annual Report the Committee and Club Management have completed the development of a sponsorship policy and the protocols necessary to support the development of a professional approach to sponsorship relationships. The subsequent sponsorship packages have been communicated to each of the Club’s Associations and have been well received. Most importantly existing and prospective sponsors have complimented the presentation resulting in confirmation of existing informal sponsorship arrangements and new sponsors. These new packages provide increased objectivity to the process while retaining the required level of flexibility to meet the individual needs of sponsors.

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•

Sponsorship Our sponsorship list for 2014 Includes: Platinum • Phil Hoffmann Travel • Southern Quarries Gold • Ziptrak Silver • Robert Oatley Vineyards • Iocane • Yalumba Family Vignerons Corporate • Port River Marine • R Marine • Sportsmed SA • Central Audio Visual • Charlesworth Nuts Club Supporters • EverettBrookes Custom Jewellery • SALife Channel 7 / Vislex • The Stag • Haese Marine / Bavaria • Custom Cartons • Living Colour Plants • Canegrass Saltbush Lamb The CYCSA is a not for profit Club and relies on the volunteering efforts of Club members and the professional expertise these volunteers bring with them. Their efforts enable us to contain costs and still get the important things done, especially during tight economic times.

On behalf of the Committee, we would like to acknowledge and thank all of our Club’s volunteers. In particular we acknowledge the support of our immediate past Commodore Geoff Catt.

Special thanks also to the Club’s Administration Team, in particular Laura and Craig for their patience and support.

Wayne Coonan and Sam Tolley, Co-Chairs Member Services, Sponsorship & Recruitment Committee

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Groundswell Editorial Committee Report Groundswell is the Club’s ‘flagship’ communication and promotion vehicle and attempts to reflect life at the Club by involving all the interest groups in contributing articles about their activities and seeking out topics that may be of interest to other members. The committee works hard to gather articles together for each edition occasionally resorting to writing some of them so that fast approaching deadlines are met and to ensure that the wide range of activities and events are reported on.

Jess Hargreaves, the Racing Manager, and Traci Ayris from the Racing Association have been wonderful contributors for the Racing Association and racing activities/events in general as racing is an integral part of Club life and to have such informative and complete reporting is invaluable. The chairperson of each Association puts together articles on their functions and the Marine Academy also keeps us up to date on the events and courses they run.

To put the magazine together it takes a bit of time on the part of an enthusiastic group of volunteers to make it happen and we really appreciate the input the Club Associations in particular and other members make. Without the interest and response by our members it would be a slim volume each quarter. However, for Groundswell to maintain the high quality I believe we have achieved, we would appreciate receiving more input from all areas of the Club. If you have been on a fishing trip, completed a Marine Academy course, a cruise or participated in a race that you found interesting, odds are that so will many members, so please put pen to paper and submit it to Reception who will pass on to the editorial committee.

Trevor Paynter, our graphic designer, not only lays out Groundswell ready for printing but he also contributes in a most enthusiastic way to the type of articles to be presented. Reflex Printing do a wonderful job of printing and getting the magazine out to members.

Advertising is an important component of Groundswell in order to make it cost neutral to members, so if you would like to gain exposure to over 1100 members plus friends and coffee table readers, please speak to Reception and they will advise you on advertising rates etc. The staff and in particular Laura are an important part of our production team and if the advertising revenue increases, then so can the quality and size of the magazine.

The Editorial Committee currently comprises myself, Laura Turner, Owen Mace, Terry Lockwood and Don Burrow so feel free to approach any one of us to talk over any ideas you may have regarding the magazine.

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Over the years that I have been editing Groundswell, I have derived considerable pleasure working with other volunteers on such a great project, and take pride in contributing to such a high quality publication four times each year. We are always looking for contributions of articles and if anyone would like to volunteer their time to join the production group in some capacity, please make your interest known to us. It is a terrific way to support members and the Club.

Thank you for your support over the year and I trust you continue to enjoy contributing to and reading Groundswell.

Gay Footer, Editor Groundswell Editorial Committee

Association Reports Fishing The Fishing Association Committee for 2013/14 consisted of Glenn Spear Chair (until May 2014), John Colella (Chair from May 2014), Bruce Tasker (Treasurer), Vlad Humeniuk (Secretary), Peter Newmarch, Geoff Wiggins, Leica Theodore, Romeo Macolino, Barry Willoughby and Henry Garner.

The Fishing Association Committee (FAC) under Glenn Spear’s leadership worked hard in presenting many functions for the benefit of our valued Fishing Association and CYCSA members.

Our core functions were the Fishing Association Riviera Boating Showcase in November 2013 and Crabbing Day in March 2014.

Boating Showcase was generously sponsored by Riviera Boats.

This was held on Friday 29 November with six Riviera boats on display, with most provided directly by Riviera. Once again a selection of food and drinks was provided on the night while people mingled with the crowd and casually strolled through the many styles of prestige boats, dreaming of owning one of their own. The event was attended by approximately 90 people of whom many were Riviera guests. Unfortunately attendance by Fishing Association members was down. The Fishing Association Committee is challenged to improve attendance by members to Boating Showcase which we see as one of our main functions.

Boating Showcase is once again scheduled for 14 November this year and we hope to see you all there.

Crabbing Day was a great success, held on the long weekend during Mad March with great attendance. The weather was ideal with low winds which resulted in a fantastic participation rate of boats catching crabs, the core of what the day is all about. Crabs came in late this season which gave us a little concern leading up to the day but this was soon dispelled as the crab tally for the day totalled 650. Crabs were plentiful and enjoyed by all the members, families and friends with many going back for seconds.

Ample leftovers remained for some to be taken home after the event. Due to a drop in sponsorship and the high cost of holding Crabbing Day, mainly contributed to marque hire, the event will be moved to end of February 2015, away from the long weekend and also Mad March. We hope this will increase attendance at the event and assist in covering the costs involved. The Fishing Association Committee is also looking at other strategies to reduce cost for the event.

not utilised as we would have hoped, but we continually work to enthuse members to submit photos and stories.

This year the Flying Gaff Trophy has been award to Tim Marsh based on his sailfish catch in Broome and will be awarded at the Fishing Association Seafood Experience Night.

The Cash Flows for the Association have been healthy for this financial year. Incomes were at $13,644 and expenditure at $6,888, giving us a surplus of $6756. This is now added to the retained profit that the Association has and lifts it to $76,063. The Fishing Association has enjoyed the legacy of this healthy bank balance over the years, attributed to the efforts of the current and previous Fishing Association Committees. I want to publically thank all present and past members involved for their diligence and great work in achieving such a large amount, especially our Treasurer Bruce Tasker.

By Board direction, these moneys are held in trust by the CYCSA Board, and have been allocated to the CYCSA Building Fund rather than “for the exclusive use of the Association to further the objects of the Association”, as stated in the Regulations. The Fishing Association Committee has always endorsed these funds to be applied to upgrading the Bar and Patio Area and trust that the Board will honour this commitment.

The Fishing Association Committee now faces the challenge of entering the 2014/15 financial year under a new direction from the Board to use the CYCSA’s facilities more extensively. The loss of competitive outside suppliers will translate to higher costs for functions, but we still plan to hold ‘world class’ events and will work towards this outcome with CYCSA staff.

On a final note we wish to thank our sponsors, Central Audio Visual, Riviera Boats, Theodore Marine, Club Marine and Reflex Printing and look forward to their continuing generous support.

John Colella, Chair Fishing Association

Our next major function is the Seafood Experience which is scheduled for 26th July 2014. This event is similar in format to previous Seafood Nights which have been a tremendous success, so we look forward to a great night again. The Fishing Association Committee has worked with the CYCSA kitchen on a quality menu which we believe will excite the culinary appetites of attendees. The cost for the event is set at $69 per person and we are hoping to get a minimum of 80 people to make the evening a success.

The Fishing Association Fishing Trophy Board has been updated with the winners from last year. This is based on uploaded photos on the Fishing Association website photo gallery. This gallery is 19

Cruising Yacht Club of South Australia Annual Report for 2013/2014

Association Reports Fishing continued...

Income Statement 2013/2014 Balance Carried Forward

$69,307.00

Income Subscription Fees $3,140.00 Crabbing Day Income $4,022.72 Sponsorship $3,000.00 Shirts/Burgee/Flags Sales $0.00 Seafood Night Income $0.00 Fishing Competition $0.00 Boating Showcase Income $3,236.27 Moorings Income $0.00 Interest $0.00 Other Income $245.45 Total $13,644.44 Expenses Subscription Expenses $0.00 Bar/Catering Expenses $341.82 Crabbing Day Expenses $4,002.47 Shirts/Embroidery $0.00 Donations $0.00 Fishing Competition $0.00 Seafood Night Expenses $0.00 Boat Show Expenses $2,289.92 Flags $0.00 Other Expenses/Meeting/Badges $254.18 Total $6,888.39 2013/2014 Result Transfer to Bar/Club Redevelopment

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$6,756.05 $76,063.00

Association Reports Cruising This year the Cruising Association has focused on our (and perhaps the CYCSA’s) reason for existence – cruising!

The Committee consisted of Richard Lea (Chair), Graham Patterson (Secretary), Roger Flint (Treasurer), Mike Draper, Mike Holmes, John Sibly, Gerard Hughes and most recently Terry Nicholas.

All helped to ensure good representation across the Club and worked to increase the engagement of the CYCSA membership in cruising activities.

A number of small informal cruises have been held throughout the year. The Association is keen to support and promote any cruise being undertaken by members of the CYCSA, whether they are active in our Association or not. To that end we encourage members to join our web based group ‘SA Cruisers’.

In addition to cruising activities we are also looking, in cooperation with the Fishing Association, to improve both the number and maintenance of moorings held by the Club in coming years. Ongoing sponsorship of the Cruising Association by Charlesworth Nuts will be of great help in this regard.

The Second Saturday BBQs held in the warmer months have been well attended and the support of those, particularly Graham Patterson, Mike Draper and more recently Bravo Sails, has been greatly appreciated. A smaller group mostly comprised of members who live near the Club also meet for informal BBQs most Tuesday nights. If you happen to be at the Club on a Tuesday night you are always welcome to join us.

The ‘Tall Ship’s Cruise’ from 29 August to 2 September greeted the three Dutch ships Tecla, Oosterhelde and bark Europa as they sailed into Port Adelaide. Despite arriving on a weekday numerous CYCSA boats greeted them and travelled up the Port River in a massive flotilla to spend several nights in Dock One in Port Adelaide before sailing down the river in an even bigger flotilla for their departure. Members of the Cruising Association enjoyed a wonderful few days of sailing and nostalgia being in the company of these magnificent ships and the English Tall Ship Lord Nelson which came into port during the festivities.

The ‘Christmas – New Year Cruise’ saw many yachts heading down the gulf towards Kangaroo Island with some taking side trips to Port Lincoln, the Sir Joseph Banks Group and destinations on Yorke Peninsula. Small informal gatherings took place at numerous locations and around 30 yachts made it to American River for a New Years Eve Party on the beach, held jointly with the Social Activities Association. A great time was had by all despite the threat of strong northerly winds which had us all sheltering on moorings in the river. It provided us all with a salutary reminder of the need to anchor dinghies beached on an incoming tide!

Guests of the Fundraising Committee were ferried up the Port River from CYCSA and RSAYS to a welcome on the dockside and a special tour of the ship. We anticipate there will be an ongoing involvement in this endeavour, which as anyone who has seen the ship will know will be a massive task.

The ‘Easter – ANZAC Cruise’ saw a good fleet head to Kangaroo Island. We were fortunate to have two public holidays so close together that numerous boats turned it into a ten-day holiday with time spent cruising around Penneshaw, Eastern Cove, Bay of Shoals and American River. Adrian Wotton gave a stirring ANZAC Day memorial overlooking Christmas Cove, recalling the landing at Gallipoli.

Richard Lea, Chair Cruising Association Income Statement 2013/2014 Balance Carried Forward

$7,076.00

Income Burgees Sale $20.00 Moorings Income $0.00 Port Vincent Project $0.00 Sponsorship $2,000.00 Cruise of the Year $0.00 Interest $0.00 Other Income - raffle $124.55 Total $2,144.55 Expenses Environmental Day (BBQ) $0.00 Hospitality $71.82 Flags $0.00 Entertainment $0.00 Trophies/Prizes $0.00 Refridgerator $0.00 Other Expenses $100.45 Donations - Port Vincent BBQ Area $0.00 Total $172.27 2013/2014 Result Transfer to Bar/Club Redevelopment

$1,972.28 $9,048.28

The ‘City of Adelaide Clipper Ship Cruise’ saw a number of members assisting the fundraising efforts for the Clipper City of Adelaide which is now on a barge in Dock One in Port Adelaide.

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Association Reports Social The year of 2013/14 was a fun year for the Social Activities Committee. The main events organized were: • Art Exhibition • Commodore’s Dinner sponsored by Archer & Holland Jewellers • Queens of Clean – raising funds for Youth Opportunities • Girls Night In – raising funds and awareness of Breast Cancer • Show Bags for children on Opening Day • Children’s Christmas Party • Club Christmas Party • Bringing in New Years Eve on Kangaroo Island • Bavaria Boat Hop • New initiative of a Book Club This year’s Committee consisted of Pam Humeniuk (Chair), Don Guy (Treasurer), Morag Draper (Secretary), Karen Johns, Anne Burrow, Joe Mezzini, Polli Woods, Deb Kassebaum, Jacq Heffernan and Sandra Richards.

The Committee also welcomed additional assistance from Pauline Garner, Vicki Pearce and Linda Mendrin. I would like to thank this wonderful group of people for their support and unfailing sense of fun.

This was the second year for the Art Exhibition, and whilst enjoyable for all those attending it did not generate massive interest in the Club. Rowley Richardson and Trevor Paynter are to be thanked for their drive in making this happen. The Social Activities Committee provided the manpower to make sure the exhibition was fully staffed so that prospective buyers and those just browsing had a point of reference. However due to the tepid response this event received and the huge amounts of work involved it has been decided not to hold this event again.

We welcomed Archer & Holland Jewellers for the first time as sponsor of the Commodore’s Dinner. The theme of ‘Gatsby’ was warmly received and decorations were organized to express this fabulous era of history. Guests all got into the feel with many ‘authentic’ Gatsby costumes. We tried to create the’speakeasy’ feel with pre-dinner drinks being served in teacups. Again members expressed their delight at this evening, and appreciated the opportunity to dress up.

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The Queens of Clean again made an appearance at the Commodore’s Dinner, with the funds raised this year going to assist Youth Opportunities with their work. This organization assists youth at risk due to social reasons, and has a spectacular record in helping the young to put meaning into their lives.

The Girls Night In has been the ‘baby’ of Morag Draper since its inception and this year we had great support from the community with exhibitions of jewellery, domestic items, clothes and services such as manicures, pedicures, facials and many more. The Committee worked hard to get donations for a silent auction and to get donations of product to ensure that the costs could be controlled. This resulted in a donation to Breast Cancer of $3000.00. Thank you to all the hard working Committee and Club members who supported this event. And super thanks to Morag Draper who again was the driving force behind this event.

Our new format for the Children’s Christmas Party of being an afternoon event again proved popular. Santa Claus arrived by boat, courtesy of David Henderson, and was just in time to shelter from very heavy rains. However nothing could dampen the spirits of the 40+ children who waited patiently for Santa to distribute gifts. Thanks to Trevor Kipling for being such a staunch supporter of the Social Activities Committee.

The Club Christmas Party was held early December, and whilst numbers were reasonable, most guests were not Club members, but visitors from outside groups. For this reason the Committee has decided not to hold a traditional Christmas dinner in 2014, but rather a more informal Carols & Cocktails event nearer to Christmas. More details will follow in due course.

Many CYCSA boats were on Kangaroo Island for New Year’s Eve and we marked the party area on Strawbridge Point with flares in the waterline. We had a BYO everything party which was great fun. Many thanks to Carol from VMR American River for finding the flares and oil and bringing them down to the wharf. The night was magical and about 40 CYCSA members and friends greeted the New Year with sparklers and an occasional glass of bubbles.

The 2014 Bavaria Boat Hop was a success with about 140 people attending to first of all ‘hop’ from boat to boat, enjoy meeting new people, sample wines and cheeses and then congregate in the BBQ area for an informal dinner and fun entertainment.

Association Reports Social continued Graeme Haese and Bavaria are to be thanked for their ongoing sponsorship of this event.

The Social Activities Association began a new initiative of a Book Club. The Club meets on the first Friday of each month in the Members Lounge. We do not all read the same book, but rather come along, discuss a book that we have read recently and if possible lend it to the group for passing around. Numbers for this initiative are not high, but a core group come along whenever possible and enjoys the chance to learn about new books and discuss what they have been reading. New members are always welcome.

In the past few months the Social Activities Committee and all other Associations has been directed by the Board to change the way we organize our events. We have done some self-catering in the BBQ area, especially for the Boat Hop, and also raised funds via the Queens of Clean and raffles for charities outside of the Club. These are activities we believe must now change.

With this direction from the Board we have gone back to the Social Activities Association Regulations to find direction for upcoming events. We have determined to follow the Objects as set out in said Regulations and that our prime objective will be ‘FUN’ – or as stated in the regulations under Objects (A): To promote the enjoyment of the facilities of the Club by programming and organising social functions that can be enjoyed by all members of the Club.

The program we offer in 2014/15 will be first and foremost FUN. Some of our events will not be held, e.g. Girls Night In; some will change format, e.g. Christmas Party, now not a dinner but Carols on the lawn; and we will strive to find additional things to promote enjoyment among members which are focused on FUN.

Income Statement 2013/2014 Balance Carried Forward

$7,118.00

Income Boat Hop $5,786.38 Kids Xmas Party Income $909.08 Commodore’s Dinner $6,436.25 Girls Night In $0.00 Interest $0.00 Art Exhibition $2,276.35 Christmas Dinner Raffle $231.82 Raffle banked $454.55 Total $16,094.43 Expenses Boat Hop $3,513.43 Kids Xmas Party Expenses $1,527.62 Commodore’s Dinner $7,414.06 Girls Night In $0.00 Capital Items for the Club $0.00 Funds donated to Racing Association $0.00 Hospitality Expenses $851.32 Progressive Dinner $0.00 Art Exhibition $1,534.09 Wrist Bands $0.00 Port Vincent BBQ Area $0.00 Poker Tournament -$1,818.18 Other $28.91 Total $13,051.25 2013/2014 Result Transfer to Bar/Club Redevelopment

$3,043.18 $10,161.18

The new initiative of ‘Most Valued Volunteer’ is welcomed by the Social Activities Association and we nominate Morag Draper for this honour. Morag is always active in making sure our events run smoothly and is always working hard behind the scenes.

Pam Humeniuk, Chair Social Activities Association

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Cruising Yacht Club of South Australia Annual Report for 2013/2014

Association Reports Racing CYCSA Racing Association Committee members for 2013/14 were Traci Ayris (Chair), William Strangways (Vice Chair, Brenton Pegler, Roger Nicholson, Shevaun Bruland, Adrian Wotton, Rob Sellick and Mark Hutton.

John Gibson resigned during the season due to an increased work load and we thank him for his years of service to the REX and his continued dedication as Race Officer. Our Racing Manager Jess Hargreaves was away on maternity leave for the first half of the season and in her absence the Racing Association employed Jon Henschke, a student from the school of Sports Management at UniSA to first complete his Industry practicum placement, and then to take on casual employment in the role of Assistant Racing Manager. On behalf of all Racing Members I thank each and every one for their time and support.

The Racing Executive (REX) wishes to acknowledge our Race Officers for the season, John Gibson and Ray Evans. We recognise that this role is an often demanding and thankless task and we acknowledge the time and effort our RO’s invest to facilitate our program. We also acknowledge the contribution and valued support of our Volunteer Duty Crews on CYC1 and CYC2.

Once again our protest committee has only convened on a few occasions this season; however we thank Protest Chairman Simon Irving who has been generous with his time and expertise when called upon.

For the fourth year running REX collaborated with the Royal SA Yacht Squadron in order to produce and facilitate the 2013/14 Racing Program. Via survey, we again canvassed our members for feedback on the past season and believe that our 2014/15 program will reflect the wishes of the majority of our racing members. The level of co-operation between CYCSA and RSAYS has continued to be satisfactory and for the most part skippers and crews are enjoying the combined fleet racing.

After remaining fairly stable over the past four years, Racing Association membership numbers decreased this past season. REX will continue to focus on redressing this loss through a number of measures including working in conjunction with the CYCSA Marine Academy to encourage course members to extend their skills by joining our racing fleet wherever possible.

Our Regatta fleets have continued to grow; once again proving their popularity amongst the SA based clubs. The Premier’s Cup numbers remained stable with 36 nominations, which were evenly spread out amongst CYCSA, RSAYS and PASC. The Great Southern Regatta had a record breaking 38 boats entered, and once again, many entries came from Port Adelaide and RSAYS. In addition to our staple regattas, the J24 State Championships were held at the CYCSA in March. The Destination Race to Port Vincent once again proved popular, and our on-water fleets for Twilight Racing (30) and the Coaster Series (14) once again proved their popularity with our members.

Cruising Yacht Club of South Australia Annual Report for 2013/2014

24

The CYCSA was well-represented at interstate campaigns over the past season by Shining Sea, in both the Sydney to Hobart Yacht Race, where they placed third in their division and 18th overall in IRC; and also at Victoria’s 2014 Festival of Sails, where they won their division on IRC in the passage race, topped the podium for the Regatta in both IRC and AMS divisions and also took the top prize for the Beneteau Nationals.

We were also represented internationally at the Rolex Fastnet Yacht Race in August by Geoff Boettcher’s Secret Mens Business 3.5, Andrew Saies’ crew aboard Two True Tarka and our adopted British boat Quokka. (Quokka, owned by RORC past Commodore Peter Rutter was invited to join our CYCSA crews to form a Club team in the event) The Rolex Fastnet Yacht Race ranks as one of the most prominent and difficult ocean races in the world and takes yachts from the start line in Cowes around Fastnet Rock south of Ireland to the finish line in Plymouth. Secret Mens Business raced in IRC Z Division and out of 14 boats in that division finished 3rd. Two True Tarka was in IRC 2 Division and in a field of 78 boats finished 14th. Two True Tarka achieved 36th place overall and Secret Mens Business placed 93rd in the 288 boat fleet. Our adopted boat, Quokka, was placed 29th overall. REX acknowledges the enormous commitment made by Geoff Boettcher to take his boat to the UK to compete in this race and also to the local crews from both boats who took up the challenge.

As we have noted in previous years, no racing season is without its challenges. As a committee we continue to adapt, learn from mistakes, make adjustments where necessary, and work to solidify our position in this extremely challenging financial climate.

REX continues to seek out people who are willing to volunteer for our Duty Crew volunteer pool. Our core group is as reliable as ever but we recognise the importance of training more people, thereby ensuring that we have a solid back up for the future.

It is as important as ever to have our boats crewed with teams as fantastic as those we currently have. As always, we welcome assistance from any interested members who might like to join our wonderful volunteer crews on race days.

We are grateful for the wonderful support of our sponsors this past season. Phil Hoffmann Travel, Port River Marine, Yalumba, Robert Oatley Vineyards, The Stag Hotel and Canegrass Saltbush Lamb have once again been integral to the success of our season.

We are also thankful to businesses such as Sportsmed SA, SALife Channel 7/Vislex and EverettBrookes Jewellers, whose sponsorship of individual races and regattas during the season was a valuable addition to our bottom line. We also conducted another successful raffle (courtesy of Phil Hoffmann Travel and our other valued sponsors) in an effort to boost our figures and offset lost sponsorships.

Sponsorship continues to be a major challenge but with the support of our current sponsors we are managing well. The introduction of the Whole of Club Sponsorship has started to take effect which helps us in the current financial climate.

Income Statement 2013/2014 Balance Carried Forward

Racing continued) Once again, our Race Office management has kept close tabs on our Association financials, and REX is happy with where they sit at the end of the financial year.

The 2014/15 Racing Association Committee will soon convene. I will be standing down as Chair of the Racing Executive after four years at the helm and nine years on the committee, however I will continue to work in an ex-officio capacity and anticipate that the new Committee will strive to maintain the core business of the Association which is to: • Work with members and solicit feedback to produce a program which caters for the ongoing needs of racing members; • Improve the skill set/size of the volunteer pool and streamline protocols with a view to Duty of Care; • Work with associated groups to further the sport of yachting; • Maintain/improve the Association’s financial position via membership, sponsorship and fundraising initiatives.

I thank all Racing Members, CYCSA Office and Hospitality Staff, Volunteer Duty Crew and Racing Association Committee members for their help and support throughout the past season.

The Racing Association is happily embracing the new ‘Most Valued Volunteer’ initiative the Club has put forward and we nominate John Gibson as our Most Valued Volunteer this season.

He has given up much of his leisure time to be out on CYC1 during the year and our Association could not run as well without him.

Thanks also to our Racing Manager Jess Hargreaves, and Assistant Racing Manager Jon Henschke; the Racing Association can report that the past season, while not without its challenges, has progressed well. The Committee looks forward to finalising the 2014/15 Program as it prepares for another successful season of racing.

Traci Ayris, Chair Racing Association

$66,998.00

Income Racing Membership Fees $13,437.82 Casual Membership Fees $727.22 Racing Nominations $22,446.41 Casual Nominations $1,563.76 Regatta Income $650.00 Raffle Income $3,678.05 Fundraising $0.00 Racing Flags $327.24 Blue Book Sales $231.84 Presentation Night Income $7,660.00 Sail Storage Shed $7,485.40 Canegrass Lamb Packs $0.00 J24 Championship $716.81 Interest Income $0.00 Other Income $418.18 Sponsorship Musto $0.00 Yalumba $2,000.00 Phil Hoffmann Travel $7,500.00 Port River Marine $2,727.30 Prescott Securities $0.00 Sportsmed SA $2,000.00 EverettBrookes Custom Jewellery $0.0 Vislex $500.00 Robert Oatley Vineyards $2,000.00 Total $76,070.03 Expense Wages $29,223.13 Superannuation $2,260.19 Administration $1,860.00 Engraving/Signage expense $0.00 Racing/Regatta Expenses $2,733.32 Staff Training $0.00 Airhorn $0.00 Office Expenses $0.00 Buoy Maintenance $0.00 Sponsors Expenses $749.06 Canegrass Lamb Packs $0.00 Duty Crew Expenses $2,680.85 Hospitality $672.91 Blue Books Expenses -$48.86 Clothing $0.00 Internet /Computing $350.00 Phone Expenses $164.85 Racing Flags $709.09 Motor Vehicle Expenses $0.00 Presentation Night Expenses $9,462.38 Trophies/Prizes $575.27 Other Expenses $1,769.77 Total $53,161.96

2013/2014 Result $22,908.07 Transfer to Bar/Club Redevelopment $89,906.07 25

Cruising Yacht Club of South Australia Annual Report for 2013/2014

Club Structure The following diagrammatical representation of the Club’s structure is provided to clarify the relationship between the associated entities and the function each entity undertakes in the total Club structure.

CYCSA Incorporated (referred to as ‘the Club’) • •

Senior Members elect a seven member Board of Management annually.

All Senior Members hold units in this trust and therefore have a beneficial interest in the above assets.

•

As an asset holding entity, the trust’s affairs do not generate profits that can be distributed to unit holders.

CYC Ramp Trust •

This is the trust established in the early 1990s to facilitate the purchase of property including the southern area of the carpark, the land to the south and the Western Basin.

- is responsible for the management of the Club with delegation of appropriate responsibilities to the Chief Executive Officer.

•

The major assets of the trust are the Western Basin including Marina West and the water area adjoining the northern peninsula.

- act as Directors of CYC (SA) Management Pty Ltd, the trustee of the CYC (SA) Unit Trust.

•

The trust also operates the public boat ramp.

•

The trust leases Marina West land/water to the CYC (SA) Unit Trust.

•

The trust, being a discretionary trust, does not have owners, but the beneficiaries of the trust are the Club and the CYC (SA) Unit Trust. The trust has made distributions to the Club in the past.

The Board of Management (‘the Board’)

- act as Directors of CYC Ramp Pty Ltd, the trustee of the CYC Ramp Trust.

•

•

The Club owns the floating assets in Marina West.

CYC (SA) Unit Trust •

The major assets of this trust are the freehold of the Club Eastern Basin at North Haven, including land, water and buildings, and the sub-lease of the Port Vincent Marina and a lease of the land and water of Marina West (which is sublet to the Club).

BOARD OF MANAGEMENT Directors elected annually by Senior Members

CYC Ramp Pty Ltd As trustee for

CYC Ramp Trust Owns Marina West, ramp and adjacent land and water, including channel

CYC (SA) Management Pty Ltd

CYC (SA) Unit Trust Owns land and water, buildings, Marina East • Underlease of Port Vincent Marina from the Yorke Peninsula Council • Lease of Marina West

Profits

Profits

Beneficiaries CYC (SA) Unit Trust CYCSA Inc

Beneficiaries Senior Members

Cruising Yacht Club of South Australia Annual Report for 2013/2014

26

CYCSA Incorporated • Operates bar and slip • Staff • Rents buildings and Marina East from CYC (SA) Unit Trust • Underlease of Marina West and Port Vincent from CYC (SA) Unit Trust

Members

The Cruising Yacht Club of SA Incorporated and Controlled Entities Statement by the Board of Management In the opinion of the Board of Management, the Financial Report as set out on pages 28 to 41.

1. Presents fairly the financial position of The Cruising Yacht Club of SA Incorporated & Controlled Entities as at 31 May 2014 and its performance for the year ended on that date in accordance with Australian Accounting Standards (including Australian Accounting Interpretations), mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board.

2. At the date of this statement, there are reasonable grounds to believe that The Cruising Yacht Club of SA Incorporated & Controlled Entities will be able to pay its debts as and when they fall due.

3.

In accordance with Section 35(5) of the Associations Incorporation Act 1985 the Board of The Cruising Yacht Club of SA Incorporated & Controlled Entities, hereby states that during the year ended 31 May 2014:

- Other than disclosed in Note 19 in the financial statements, no officer of the Association has, since the end of the previous financial year, received, or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the officers of the Association shown in the financial report) as a result of a contract between the officer or a firm of which his is a member or an entity in which has a substantial financial interest and the Association;

- No officer of the Association has, since the end of the previous financial year, received directly or indirectly from the Association, any payment or other benefit of a pecuniary value (other than a benefit included in the aggregate amount of emoluments received or due and receivable by the officers of the Association shown in the financial report).

This statements is made in accordance with a resolution of the Board of Management and is signed for and on behalf of the Board of Management by:

President Director - Cruising Yacht Club of SA Inc.

- CYC (SA) Management Pty Ltd

- CYC Ramp Pty Ltd

Treasurer Director - Cruising Yacht Club of SA Inc.

- CYC (SA) Management Pty Ltd

- CYC Ramp Pty Ltd Dated this 26th day of July 2014

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Cruising Yacht Club of South Australia Annual Report for 2013/14

Statement of Comprehensive Income for the Year Ended 31 May 2014

Note 2014

$

2013 $

Revenue 2 3,234,249 3,099,378 Other revenue 2 144,532 131,996 Employee benefits expense (1,152,556) (1,112,450) Depreciation 8 (449,348) (474,259) Other expenses 3 (997,427) (953,771) Finance costs

- (7,564) Cost of sales

(456,848) (475,478) Insurance

(102,679) (85,839) Impairment expense - (10,000) Repairs & maintenance expenses

(211,578) (167,088) Net Profit / (Loss) 8,345 (55,075)

Other Comprehensive Income -

Total Comprehensive Income 8,345 (55,075)

The accompanying notes form part of these financial statements.

Cruising Yacht Club of South Australia Annual Report for 2013/14

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Statement of Financial Position as at 31 May 2014

Note 2014 2013 $ $ Assests CURRENT ASSETS Cash and cash equivalents 4 1,352,027 1,174,967 Trade and other receivables 5 87,779 107,154 Inventories 6 74,192 74,307 Other assets 7 67,081 127,984 TOTAL CURRENT ASSETS 1,581,079 1,484,412 NON-CURRENT ASSETS Property, plant and equipment 8 17,660,121 17,513,876 TOTAL NON-CURRENT ASSETS 17,660,121 17,513,876 TOTAL ASSETS 19,241,200 18,998,288

LIABILITIES CURRENT LIABILITIES Trade and other payables 9 751,414 619,558 Borrowings - Short-term provisions 10 209,319 152,183 TOTAL CURRENT LIABILITIES 960,733 771,741 NON-CURRENT LIABILITIES Trade and other payables 9 5,286,737 5,337,433 Borrowings - Long-term provisions 10 17,891 64,721 TOTAL NON-CURRENT LIABILITIES 5,304,628 5,402,154 TOTAL LIABILITIES 6,265,361 6,173,895 NET ASSETS 12,975,839 12,824,393

EQUITY Issued capital 11 6,133,187 6,108,787 Reserves 13 1,605,504 1,305,150 Retained earnings

5,237,148 5,410,456 TOTAL EQUITY 12,975,839 12,824,393

The accompanying notes form part of these financial statements.

2929 Cruising Cruising Yacht Yacht Club Club of South of South Australia Australia Annual Annual Report Report forfor 213/14 2013/14

Statement of Changes in Equity for the Year Ending 31 May 2014

Contributed Retained Premium Club House Total Equity Earnings Reserve Reserve $ $ $ $ $

Balance at 1 June 2012 6,118,737 5,465,531 1,305,150 - 12,889,418 Capital Redemption (9,950) - - - (9,950) Operating Result for the Year - (55,075) - - (55,075) Balance at 31 May 2013 6,108,787 5,410,456 1,305,150 - 12,824,393

Balance at 1 June 2013 6,108,787 5,410,456 1,305,150 - 12,824,393 Contributed (Reduction) in Capital 24,400 - 38,200 - 62,600 Operating Result for the Year - 8,345 - - 8,345 Prior Period Adjustment/Reclassification - 80,501 - - 80,501 Transfer Between Reserves - (262,154) - 262,154 Balance at 31 May 2014 6,133,187 5,237,148 1,343,350 262,154 12,975,839

The accompanying notes form part of these financial statements.

Statement of Cash Flows for the Year Ending 31 May 2014

Note 2014 $

2013 $

CASH FLOWS FROM OPERATING ACTIVITIES Receipt from customers

3,229,326 3,151,617 Payments to suppliers and employees

(2,724,685) (2,838,762) Interest received 44,854 43,801 Interest paid

- (7,564) Net cash generated from operating activities 549,495 349,092

CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant and equipment (435,035) (31,052) Net cash used in investing activities (435,035) (31,052)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds / (Redemption) from issue of units in Unit Trust 62,600 (9,950) Net cash used in financing activities 62,600 (9,950)

Net increase in cash held

177,060 308,089 Cash and cash equivalents at beginning of financial year

1,174,967 866,877 Cash and cash equivalents at end of financial year 4 1,352,027 1,174,967

The accompanying notes form part of these financial statements.

Cruising Yacht Club of South Australia Annual Report for 2013/14

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Notes to the Financial Statements for the Year Ending 31 May 2014

Note 1: Summary of Significant Accounting Policies

The financial statements were authorised for issue on 22 July 2014 by the Board of Directors.

Basis of Preparation The Cruising Yacht Club of SA Inc. (the Club) & Controlled Entities comprising the Club, CYC (SA) Unit Trust and CYC Ramp Trust, as a consolidated group (the economic entity), applies Australian Accounting Standards (AASB) – Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements and other applicable Australian Accounting Standards – Reduced Disclosure Requirements.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Associations Incorporation Act 1985. The economic entity is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of the financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for the cash flow information, 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. The amounts presented in the financial statements have been rounded to the nearest dollar.

Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets, is depreciated on a straight-line basis over the asset’s useful life commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation Rate

Buildings 2.5 – 3 %

Marina 2–7% Plant and Equipment 5 – 50 % The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.

(b) Property and Equipment

Plant and Equipment Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(e) for details of impairment).

The cost of fixed assets constructed within by the entity includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Gains and losses on disposals are determined by comparing net proceeds with the carrying amount. These gains and losses are recognised in profit or loss in the period in which they occur.

(c) Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal ownership) are transferred to the economic entity, are classified as finance leases.

Accounting Policies (a) Income Tax The Club is exempt from income tax under Division 50 of the Income Tax Act 1997. Under current income tax legislation, the CYC (SA) Unit Trust and the Ramp Trust are not liable to income tax provided their taxable income is fully distributed to beneficiaries.

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 association and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.

Finance leases are capitalised by recognising an asset and a liability at the lower of the amount equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or ownership over the term of the lease.

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

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. (d) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified “at fair value through profit or loss” in which case transaction costs are recognised immediately as expenses in profit or loss.

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Cruising Yacht Club of South Australia Annual Report for 213/14

Notes to the Financial Statements for the Year Ending 31 May 2014

Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between that initial amount and the maturity amount calculated using the effective interest method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of an income or expense item in profit or loss.

(i) Financial assets at fair value through profit or loss Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss.

(ii) Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the association’s intention to hold these investments to maturity.

They are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised.

(iv) Available-for-sale investments Available-for-sale investments are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with any remeasurements other than impairment losses and foreign exchange gains and losses recognised in other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss Cruising Yacht Club of South Australia Annual Report for 2013/14

32

pertaining to that asset previously recognised in other comprehensive income is reclassified into profit or loss.

Available-for-sale financial assets are classified as non-current assets when they are not expected to be sold within 12 months after the end of the reporting period. All other available-for-sale financial assets are classified as current assets.

(v) Financial liabilities Non-derivative financial liabilities are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised.

Impairment A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a “loss event”) having occurred, which has an impact on the estimated future cash flows of the financial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged decline in the market value of the instrument is considered to constitute a loss event. Impairment losses are recognised in profit or loss immediately. Also, any cumulative decline in fair value previously recognised in other comprehensive income is reclassified into profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

When the terms of financial assets that would otherwise have been past due or impaired have been renegotiated, the association recognises the impairment for such financial assets by taking into account the original terms as if the terms have not been renegotiated so that the loss events that have occurred are duly considered.

Derecognition

Financial assets are derecognised when the contractual right to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset.

Financial liabilities are derecognised when the related obligations are discharged or cancelled, or have expired. The difference between the carrying amount of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. (e) Impairment of Assets At the end of each reporting period, the Group assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s carrying amount over its recoverable amount is recognised immediately in profit or loss,

Notes to the Financial Statements for the Year Ending 31 May 2014

unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the association estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset.

(f) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. (g) Accounts Receivable and Other Debtors Accounts receivable and other debtors include amounts due from members as well as amounts receivable from customers for goods sold in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as noncurrent assets.

Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Refer to Note 1(f) for further discussion on the determination of impairment losses. (h) Revenue and Other Income Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risk and reward of ownership of the goods and the cessation of all involvement in those goods.

Annual member subscriptions and fees raised by the economic entity during the year are recognised as gross revenue.

License rental income to occupy Marina West berths have been accounted for in accordance with AASB 117 Leases. In accordance with that standard, the license to occupy a berth income received is proportionately recognised over a 40 year period. The amount of license income received that represents income to be earned in future accounting periods is disclosed in the Statement of Financial Position as being revenue received in advance.

The accounting policy for the historic sale of Marina East Berths was to recognise the entire License Income in the year received.

All revenue is stated net of the amount of goods and services tax (GST).

(i) Borrowing Costs

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

All other borrowing costs are recognised as expenses in the period in which they are incurred. (j) Goods and Services Tax (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 (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

(k) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

The economic entity has previously elected to recognise all assets at Deemed Cost under AASB 116 Property, Plant and Equipment in accordance with the provisions allowable under the transition to International Financial Reporting Standards. The economic entity no longer therefore record an Asset Revaluation Reserve in the Statement of Financial position and have transferred the balance of the reserve into Retained Earnings. (l) Accounts Payable and Other Payables Accounts payable and other payables represent the liabilities outstanding at the end of the reporting period for goods and services received by the association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (m) New and Amended Accounting Policies Adopted by the Entity The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods and which the entity has decided not to early adopt. The entity does not expect these requirements to have any material effect on the entity’s financial statement. (n) Key Estimates

Impairment

The economic entity assesses impairment at the end of each reporting period by evaluation of conditions and events specific to the association that may be indicative of impairment triggers.

Recoverable amounts of relevant assets are reassessed using value-inuse calculations which incorporate various key assumptions.

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Cruising Yacht Club of South Australia Annual Report for 2013/14

Notes to the Financial Statements for the Year Ending 31 May 2014

2014 $

Note 2: Revenue and Other Income

2013 $

Revenue Sale of goods

954,579 970,911 Commissions 150,636 118,994 Corporate fees

969,778 905,042 Membership subscriptions

538,735 545,216 Income – Marine Academy

76,105 43,159 License fee – Marina West 152,253 152,253 Income – Racing Association

76,070 80,433 Ramp income

113,569 119,751 Slipway

88,228 78,345 Other revenue

114,296 85,274

3,234,249 3,099,378 Other Income Other income 144,532 131,996

144,532 131,996

Note 3: Surplus / (Deficit) for the Year Expenses Depreciation

Impairment expense Interest paid

Advertising expenses

Computing/IT expenses

Rental expense

449,348 474,259 - 10,000 - 7,564 34,776 26,975 43,678 50,633 6,965 13,380 534,767 582,811

Note 4: Cash and Cash Equivalents Cash on hand Cash at bank and in hand

Savings account

The effective interest rate on the savings account was 2.4% (2013: 2.75%) Reconcilliation of Cash Cash at the end of the financial year as shown in the cash flow statement is reconciled to items in the Statement of Financial Position as follows: Cash and cash equivalents

Bank overdraft

Cruising Yacht Club of South Australia Annual Report for 2013/2014

34

20 21,175 1,330,832 1,352,027

20 118,963 1,055,984 1,174,967

1,352,027 - 1,352,027

1,174,967 1,174,967

Notes to the Financial Statements for the Year Ending 31 May 2014

2014 $

Note 5: Trade and Other Receivables

Current Trade receivables

Provision for impairment

108,779 (21,000) 87,779

2013 $

128,155 (21,000) 107,155

Provision for Impairment Current trade receivables are non-interest bearing loans and generally are receivable within 7 to 30 days. A provision for impairment is recognised against trade receivables where there is objective evidence that an individual trade receivable is impaired. These amounts have been listed separately as impairment expenses.

Movement in the provision for impairment of receivables is as follows: Opening provision for impairment 21,000 11,000 Charge for the year - 10,000 Closing provision for impairment 21,000 21,000

Note 6: Inventories At lower cost or net realisable value Stock on hand

74,192 74,192

74,307 74,307

67,081 67,081

127,984 127,984

Note 7: Other Assets Prepayments

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Cruising Yacht Club of South Australia Annual Report for 213/14

Notes to the Financial Statements for the Year Ending 31 May 2014

2014 2013

$ $

Note 8: Property, Plant and Equipment

Land – At Deemed Cost 6,800,000 6,800,000

Leased Asset – At Deemed Cost 32,800 32,800 Accumulated Depreciation (32,800) (32,800)

-

Buildings – At Deemed Cost

2,075,030 2,064,770 Accumulated Depreciation

(373,614) (311,031)

1,701,416 1,753,739

Plant and Equipment – At Deemed Cost

945,607 931,195 Accumulated Depreciation (604,820) (520,195)

340,787 411,000

Office Equipment – At Deemed Cost 105,925 105,128 Accumulated Depreciation

(87,304) (82,967)

18,621 22,161

Marina and Improvements (Marina West) – At Deemed Cost

8,474,840 8,308,666 Accumulated Depreciation

(1,044,568) (853,978)

7,430,272 7,454,688

Marina and Improvements (Marina East) – At Deemed Cost

1,936,477 1,929,299 Accumulated Depreciation

(1,040,865) (857,011)

895,612 1,072,288

Works-in-Progress (WIP)* 473,413 Total property, plant and equipment 17,660,121 17,513,876

Cruising Yacht Club of South Australia Annual Report for 2013/14

36

Notes to the Financial Statements for the Year Ending 31 May 2014

Note 8: Property, Plant and Equipment continued Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year:

Balance at 1 June 2013

Land Assets Buildings Assets Plant and Equipment Office Equipment $ $ $ $ 6,800,000

1,753,739

411,000

22,161

Additions

-

10,260

14,412

7,889

Disposals

-

-

- (3,385)

Prior Year Adjustment/Reclassification

-

-

-

-

Depreciation expense

-

(62,583)

(84,625)

(8,044)

6,800,000

1,701,416

340,787

18,621

Carrying amount at 31 May 2014

Marina and Marina and Improvements Improvements WIP Total Marina West Marina East $ $ $ $ 7,454,688

1,072,288

-

17,513,876

Additions

-

7,178

473,413

513,152

Disposals

- -

Balance at 1 June 2013

- (3,385)

166,174

(80,346)

-

85,828

Depreciation expense

(190,590)

(103,508)

-

(449,350)

Carrying amount at 31 May 2014

7,430,272

895,612

473,413

17,660,121

Prior Year Adjustment/Reclassification

* Works-in-Progress (WIP) reflects works being carried out on the Inner Breakwater Project. Once these project is completed, all costs will be capitalised and transferred to Marina and Improvements – At Cost asset class. There is no depreciation recorded on WIP assets until the project is completed in accordance with the requirements under AASB 116 Property, Plant and Equipment.

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Cruising Yacht Club of South Australia Annual Report for 213/14

Notes to the Financial Statements for the Year Ending 31 May 2014

2014 2013 $ $

Note 9: Trade and Other Payables

Current Trade payables 328,413 116,096 Marina West revenue in advance 152,253 152,253 Other payables

270,748 351,209

751,414 619,558 Terms and conditions of the above financial liabilities are as follows: - Trade payables and non-interest bearing are normally settled on a 60 day terms.

NON-CURRENT Unsecured Liabilities Marina West revenue in advance

5,286,737 5,337,433

5,286,737 5,337,433

Note 10: Provisions CURRENT Provision for annual leave

140,227 110,403 Provision for long service leave

69,092 41,780

209,319 152,183 Non-Current Provision for long service leave

17,891 64,721

17,891 64,721 Employee Provisions – Annual Leave Entitlements The provision for employee benefits represents amounts accrued for annual leave.

Based on past experience, the economic entity expects the full amount of annual leave balance to be settled within the next 12 months. Further, these amounts must be classified as current liabilities since the economic entity does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlements.

2014 $ Note 11: Issued Capital Settled Capital 122,101 (2013: 121,613) fully paid issued units at $50 each 27,545 (2013: 27,545) fully paid issued units at $1 each

592 6,105,050 27,545 6,133,187

2013 $ 592 6,080,650 27,545 6,108,787

Note 12: Events after the Reporting Period There were no events subsequent to 31 May 2014 that need to be disclosed in the financial statements.

Note 13: Reserve The Clubhouse Upgrade Reserve was established by the Board of the economic entity with the express purpose of committing future funding towards the redevelopment of the club hospitality facilities located at North Haven.

Cruising Yacht Club of South Australia Annual Report for 2013/14

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Notes to the Financial Statements for the Year Ending 31 May 2014

2014 2013 $ $

Note 14: Capital and Leasing Commitments

(a) Operating Lease Commitments Payable – minimum lease payments: No later than 12 months

6,733 7,860 Between 1 – 5 years 21,525 34,440

28,258 42,300 (b) Capital Expenditure Commitments No later than 12 months 1,650,985 Between 1 – 5 Years -

1,650,985 Capital Commitments recorded are for the remaining balance for the Marina West Inner Breakwater Project that is expected to be completed during the 2014/15 financial year.

Note 15: Financial Risk Management The entity’s financial instruments consist mainly of deposits with banks, accounts receivable and payables.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: NOTE 2014 2013 $ $ Financial Assests Cash and cash equivalents 4 1,352,027 1,174,947 Accounts receivable and other debtors 5 87,779 107,154 Total financial assets 1,439,806 1,282,101

Financial liabilities Financial liabilities at amortised cost: – accounts payable and other payables 9 751,414 619,558 Total financial liabilities 751,414 619,558 The economic entity has a bank overdraft and commercial bill facility amounting to $50,000 (2012: $50,000). This may be terminated at any time at the option of the bank. At 31 May 2013, $Nil of this facility was used (2013: $Nil). Interest rates are variable.

Note 16: Contingent Liabilities A bill discount line is provided to CYC (SA) Management Pty Ltd as trustee for the CYC (SA) Unit Trust. Cross guarantees in support of the facility have been provided over the non-current assets of CYC (SA) Unit Trust. As at 31 May 2013 $Nil was drawn down on the bill facility (2012: $Nil).

A bank overdraft facility of $50,000 is provided to the Cruising Yacht Club of SA Inc., which is secured by an unlimited interlocking guarantee for CYC (SA) Management Pty Ltd as trustee for the CYC (SA) Unit Trust and CYC Ramp Pty Ltd as trustee for the CYC Ramp Trust. The facility was drawn down of $Nil at 31 May 2014 (2013: $Nil).

The Club has an undrawn loan facility as at 31 May 2014 of $925,000 held with the Westpac Banking Corporation.

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Cruising Yacht Club of South Australia Annual Report for 213/14

Notes to the Financial Statements for the Year Ending 31 May 2014

Note 17: Hire Purchase Agreement The Minister for Transport has leased the Port Vincent Marina Basin to the District Council of Yorke Peninsula for a term of 99 years commencing from 1 May 2003. The Council has agreed to under lease that portion of the marina basin on which the Marina is situated to CYC (SA) Management Pty Ltd for an annual rent of $500 per annum with an annual CPI increase every year after (if demanded) for a term of 99 years less one day commencing on 1 May 2003. CYC (SA) Management Pty Ltd has under leased the area it is leasing to the Cruising Yacht Club of South Australia Inc. (the Club) for the same nominal rent and on the same terms and conditions for a term of 99 years less 2 days commencing 1 May 2003.

The lease is of the land without the infrastructure. The infrastructure is separately hired from the developer Paradise Developments (Investments) Pty Ltd. The Club is acquiring the infrastructure pursuant to a hire purchase agreement in which each hire instalment is paid when the Club sells a licence to occupy a berth to a Club member and CYC (SA) Management Pty Ltd issues units in CYC (SA) Unit Trust to a value which in aggregate equals the hire instalment amount. The Club can require transfer of ownership of each marina finger when one half of the berths which use that marina finger for access have been licensed to Club members.

CYC Ramp Pty Ltd, as trustee for the CYC Ramp Trust, has leased the Western Marina Basin to the CYC (SA) Management Pty Ltd, as trustee for the CYC (SA) Unit trust, for a term commencing on 1 November 2008 and ending on 1 October 2083, at the same rent.

The lease is of the land without the infrastructure. The infrastructure has been separately acquired from the CYC Ramp Pty Ltd, as trustee for the CYC Ramp Trust. The Club has acquired the infrastructure pursuant to a hire purchase agreement to which each hire instalment is paid when the Club sells a license to occupy a berth to a Club member and CYC (SA) Management Pty Ltd issues units in CYC (SA) Unit Trust.

Note 18: Key Management Personnel

Salary Superannuation Non-Cash Benefits Contributions

$ $ $ 2014 2013

148,389 13,581 2,204 131,978 11,878 1,976

2014 2013 $

Note 19: Related Party Transactions $

The following Board members, through entities associated with them, provided goods and/or services during the year under normal commercial terms and conditions, to the value of: Wayne Coonan

3,076 2,946

3,076 2,946

Note 20: Club Details The registered office and principal place of business of the economic entity is: Cruising Yacht Club of South Australia Inc. Lady Gowrie Drive NORTH HAVEN SA 5018

Cruising Yacht Club of South Australia Annual Report for 2013/14

40

CYCSA Inc and Controlled Entities Independent Audit Report to the Members of the Cruising Yacht Club of SA Inc and Controlled Entities

Report on the Financial Report We have audited the accompanying financial report of the Cruising Yacht Club of SA Inc. (the Club) and Controlled Entities comprising the Club, CYC (SA) Unit Trust and CYC Ramp Trust, as a consolidated group (the economic entity), which comprises the statement of financial position as at 31 May 2014, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the certification by the Trustees and Board of Management on the annual statements giving a true and fair view of the financial position and performance of the Club and Controlled Entities.

Board’s Responsibility for the Financial Report The Board of Management of the Club and Controlled Entities is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Associations Incorporation Act 1985 and for such internal control as the Board determines is necessary to enable the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we 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.

and fair presentation of the financial report 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 Club and Controlled Entities internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit we have complied with the independence requirements of Australian professional ethical pronouncements.

Auditor’s Opinion In our opinion, the financial report of the Cruising Yacht Club of SA Inc. and Controlled Entities is in accordance with the Associations Incorporation Act 1985, including:

i.

giving a true and fair view of the Association’s financial position as at 31 May 2014 and of its performance for the year ended on that date; and

ii. complying with Australian Accounting Standards as disclosed in Note 1.

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 Managements preparation

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Cruising Yacht Club of South Australia Annual Report for 2013/14

Cruising Yacht Club of South Australia Annual Report for 2013/14

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Cruising Yacht Club of South Australia Annual Report for 2013/14

Cruising Yacht Club of South Australia Annual Report for 2013/14

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