Annual Report 2014-15

a n n u a l

r e p o r t

2014 – 2015

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 2014/2015:

As at 31.05.2015

Platinum • Phil Hoffmann Travel

Foundation 22

•

Life 6 Senior 503

Southern Quarries

Port Vincent Senior

Gold • Ziptrak •

General Member NMAFC

Solar Depot

49 117 5

Racing 210

Silver • Robert Oatley Vineyards

Intermediate 8

•

Iocane

Associate/Family 60

•

Yalumba

Youth 56

•

Charlesworth Nuts

Casual Crew

39

Corporate • Port River Marine

Total 1075

•

Sportsmed SA

Miscellaneous Membership

•

Central Audio Visual

Corporate 19

Club Supporters • SALife Channel 7/Vislex •

The Stag/Peter Holden

•

Haese Marine Bavaria

•

Living Colour Plants

•

Canegrass Saltbush Lamb

•

Quin’s Yacht Brokerage

•

Wartershed Cafe and Function Centre

Contractors 58 Berth Licensee

98

Club Website • Corpor8 Solutions

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 2014/15

2

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

11

Finance, Audit and Risk Committee Report

13

Facilities Committee Report

14

CYCSA Marine Academy Advisory Committee Report

17

Membership Services, Sponsorship and Recruitment Committee Report

19

Groundswell Editorial Committee Report

20

Fishing Association Report

21

Cruising Association Report

22

Social Activities Association Report

23

Racing Association Report

25

Club Structure

27

CYCSA Inc and Controlled Entities Financial Report

28

3

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Administration

Committees

Chief Executive Officer Craig Evans Finance Manager Marina Segodina Admin and Operations Manager Jenny Krogdahl Comms and Membership Services Laura Turner (until Dec)

Mellissa Vahoumis (From Feb) Administration and Leasing Kirsty Winstone Receptionist Andrea Boylon 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 Kim Tran Port Vincent Manager Rob Marner Marine Academy Coordinator Matt Young

BOARD COMMITTEES Chair Peter Hall

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

CYCSA Marine Academy Advisory Committee Chair Rowland Richardson Andrew Saies, Geoff Boettcher, Andy Shipp, Rod Hunter, John Edwards, Craig Evans, Jess Hargreaves, Laura Turner, Mellissa Vahoumis

Facilities Committee Chair David Murray

Geoff Boettcher, Craig Evans

Membership Committee

David Knights, Martyn Heffernan, Jacq Heffernan, Trevor Kipling

Member Services, Sponsorship and Recruitment Committee

Club Associations

Chair Wayne Coonan and Sam Tolley

Craig Evans, Laura Turner, Mellissa Vahoumis

Cruising Association Committee Chair Richard Lea

Graham Patterson, Roger Flint, Adrian Wotton, Mike Holmes, Terry Nicholas, John Sibly

CLUB COMMITTEE Groundswell Editorial Committee

Fishing Association Committee Chair John Colella

Vlad Humeniuk, Peter Newmarch, Geoff Wiggins, Bruce Tasker, Leica Theodore, Romeo Macolino, Trevor Paynter

Racing Association Committee Chair Rob Sellick

William Strangways, Mark Hutton, Rob Sellick, Adrian Wotton, Shevaun Bruland, Steve Power

Social Activities Association Committee Chair Pam Humeniuk

Sandra Richards, Morag Draper, Karen Johns, Anne Burrow, Don Guy, Joe Mezzini, Polli Woods, Pat Catley, 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, Good Sports, STARCLUB, Recreation SA.

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Audit Committee

4

Chair Gay Footer Owen Mace, Terry Lockwood, Mellissa Vahoumis, Trevor Paynter, Don Burrow

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

Board of Management

Andrew Saies President

Chris Wood Treasurer

Wayne Coonan

David Murray

Glenn Spear

Sam Tolley

Peter Hall

Chief Executive Officer

Craig Evans

Flag Officers

Geoff Boettcher Commodore

Rowland Richardson Vice Commodore

David Knights Rear Commodore 5

Cruising Yacht Club of South Australia Annual Report for 2014/2015

President’s Report I am pleased to present the President’s annual report.

In a letter sent out to members in June this year I outlined a snapshot of the Club’s strong asset and current and projected cash flow position. I outlined this position in the context of the Club’s forty year history in which the long term strategy has been for successive Boards to acquire and hold adjacent land and assets as a “future fund” to be realised through sale or development, at the appropriate time, with the proceeds being used to fund major capital works such as marina replacement or an expansion of our existing facilities if and when membership increases might require this to happen.

I refer members back to that communication as a forerunner and supplement to this report.

I also pointed out that this strategy has required revision. Our membership numbers remain static or are slightly declining, new berth sales in MW remain very low as do existing berth turnovers.

At the same time the Club has had to borrow to fund the extension of the MW breakwater while finding an alternate solution to the previously envisaged wholesale replacement of the ME marinas and pontoons.

While our financial position is strong and the end of year result as good as we have had in some years it leaves little surplus or scope for prudent additional borrowings to fund other projects such as the Club house redevelopment.

The Board has spent considerable time this year reviewing and understanding our future capital expenditure requirements including the staged replacement of ME, and the projected cash flows to service all of these, along with all the usual operations of the Club, while taking into account our traditional revenue streams. We have been assisted by our auditors at Dean Newbury and Treasurer Chris Wood who have put in a tremendous amount of work in developing these financial models and who also has skilfully guided the Board on arriving at a set of well debated assumptions. The Board can with confidence monitor outcome against actual performance and hold management to account to deliver this now and into the future. The Treasurer’s report will outline this in more detail.

As part of exploring all options for realising assets in our “land bank” and as a consequence of the acrimonious negotiations with Government over its failure to grant our South Australia Boating Facility approved funding for the breakwater extension in the Western Basin, the Board appointed a consultant Matthew Clemow to advise on a variety of options for the potential sale or lease of the North Haven Boat Ramp and associated assets. A perception exists amongst some in the community that this is a ‘public ramp’ and any suggestion that the CYCSA may seek alternate use for the site has not been received favourably by the boating community or by the Government. Earlier in the financial year we engaged Rob Ball a media advisor and consultant to prepare a communications strategy that advocated our position that we could use with the various stakeholders involved with the ramp.

Matt Clemow recently reported to the Board and based on his extensive connections in Government and the relevant Government Cruising Yacht Club of South Australia Annual Report for 2014/2015

6

Departments was able to advise that there was little or no possibility of striking any deal with the current Government in relation to a sale or lease back transaction for the ramp and associated land areas.

A number of possibilities are now being looked at for the longer term that if successful and approved would result in a premium return to the Club in the future. Unfortunately there is no immediate or impending financial windfall for the Club. The ramp continues to remain profitable due to volume and an increase in fees this year but not to the level that would be achieved if the land was allowed to be developed to its full potential.

The Board brought to conclusion this year decisions and plans for a number of issues and projects that have required considerable time and deliberation over the last few years. As a consequence this year the following have been completed: •

Successful completion of the Western Basin breakwater extension, below budget.

•

Establishing that there is no imminent sale or purchaser of the North Haven Boat Ramp assets.

•

Upgrading our financial reporting to include accurate ten year cash flow forecasts allowing greater certainty about what we can and can’t afford.

•

Identification of the likely major capital expenditure requirements for the next ten years.

•

An affordable and timely program for repair and replacement of pontoons in Marina East which has been underway now for over twelve months and is already being positively commented on by members.

•

Establishment of an appropriate repair solution for pontoons in Port Vincent if and when they are required.

•

Solar panel installation.

•

Clarification of the basis for and right under the constitution to raise a corporate fee.

As a consequence of resolving or clarifying many of these issues the Board and the CEO in the last month or so of the year have found some clear air in which to bring new focus onto Club operations, including structure, administration, member services and facilities.

Two years ago an independent review into the Club’s organisational structure made recommendations to the Board which were largely accepted and rolled out through the CEO. This has resulted in a reduction in full time employees and an out sourcing of slipping services.

The Board is again looking at the best management resources and practices to effectively run the Club for the services that members have traditionally enjoyed or alternatively to understand what services members might be prepared to lose if cost reduction is a priority. By the time this report is delivered we hope to have put out an online survey seeking views on a wide range of Club issues, services and facilities. It will be the task of the new Board to analyse and act on these results and related matters as they see fit.

President’s Report The Board is very aware that the Club and members are keen to progress and sooner rather than later, an upgrade of our bar, dining room and patio facilities. The current facility is many years old and does not have the contemporary feel, functionality or ambience that we would all like to see in our Club. The Board takes the view that a substantially upgraded facility will see members wanting to use the bar and patio area more frequently as well as driving new business into the Club such as corporate lunches and functions. The business case under pins some but not all of the investment required.

In the past a variety of plans of varying size and design have been put forward but other capital priorities have prevented this from occurring, However in the past year further concepts have been explored with architect and member Caillin Howard who has very generously assisted with this preliminary work by donating his time so far.

The Facilities subcommittee of the Board continues to work to bed down an exciting but affordable development for this area and hopes to have a tangible design for release to members very soon.

At the same time it needs to be stated that in order to commence this project in the next six to twelve months a successful fund raising program from members along with additional commitment from new sponsors needs to occur.

Sam Tolley and the member services subcommittee are looking at models to harness the financial support needed from members to get this project started. It will be entirely voluntary. It is not a “call.� The Club can fund its current facilities and operations without resorting to fund raising. None the less we believe members would really like to see this development happen now and support through options at multiple levels will all add up to get this project happening.

I would like to thank and acknowledge our CEO Craig Evans and his team for all their work in managing and running the Club this year. Craig completed the Institute of Company Directors course at the direction of the Board and graduated this year and perhaps because of his new qualifications has had to endure greater scrutiny and has been subject to more intense questioning over a number of operational matters than has been the case in the past.

I would like to thank our Flag Officers Commodore Geoff Boettcher, Vice Commodore Rowley Richardson and Rear Commodore David Knights, they are often the eyes and ears of the Board with members as well as the many events they attend representing the Club.

Geoff Boettcher in his first year as Commodore has made valuable observations and contributions to the life of the Club.

I would like to thank the Board for their contribution this year. Robust questioning and debate at Board level is all part of good governance.

Good Board decisions are based on facts presented in timely well considered and researched reports, prepared by directors, consultants or management. Good decisions are those that take into account both the short and long term interests of the shareholders or in our case the members.

Boards add value through both financial and qualitative success. In our Club lifestyle and leisure time enhancement is important currency for measuring value to members. However each Association rates this value in different ways and has different expectations of the Club in terms of competing for the allocation of available resources each year. The Board has always taken the view that membership is the passport to any and all of the various Club facilities, events and activities and importantly friendship and camaraderie. There are other options around for those who just want to park a boat.

Our current Board composition brings a diversity of skills and personalities but all have the interests of the members at heart.

All put in many hours of voluntary time. My job is to manage the diversity, achieve consensus in line with strategy and available resources and work with the CEO to deliver and implement. There is still and always will be plenty for the new Board to do but much business has been concluded successfully this year while earmarking other items for future attention.

Andrew Saies, President

7

Cruising Yacht Club of South Australia Annual Report for 2014/20145

Treasurer’s Report It is my pleasure to report to members on the financial activities of the Club for the 2014/15 financial year. My focus and interpretation is on the 2015 Consolidated Financial Report, 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 positive and exceeded budget. The Club has reported its second consecutive positive Operating Surplus / Total Comprehensive Income (after depreciation costs).

The financial report presented in the 2015 Annual Report represents the Consolidated Position of the Club and reports the Club’s financial performance and position for the 12 months ended 31st May 2015. All entities have been audited by our external auditor, with unqualified reports issued and included in this report.

“Overall, the Club finances are in good shape reflected by the Club’s solid cash flows and strong balance sheet“.

The year in review

The Board has been extremely mindful of the difficult prevailing economic conditions, in particular the pressures of being able to run and fund a Yacht Club, with relatively unchanged membership numbers, very few new boats delivered into the State, very few new berth sales or new leasing opportunities, whilst at the same time keeping our extensive assets well maintained, providing the fundamental services expected by the general membership base, and in particular ensuring that the basic underlying membership costs and corporate fees are reasonably contained. To achieve the pleasing financial results for the year under review, Management were set demanding budget performance targets to ensure that the Club operated profitably, generated the required cash to fund its business activities and provide the additional surplus cash necessary to assist funding capital works, including but not limited to contributing to the new Western Basin Break Water, which was successfully completed during the year. The comprehensive reporting systems (including cost centre budgets) in place have allowed both Management and the Board to thoroughly monitor all financial aspects of the Club on an ongoing monthly basis.

to the delays in commencing this project [mainly third party/ government approvals/awaiting competitive quotations], the Club borrowed $462,500 from Westpac, not the $925,000 previously estimated based on the original engineering costing. The remainder of the cost was sourced from the Club’s cash reserves and from the trading cash flows referred to above.

4. In addition to the above capital costs, the Club has also funded other capital additions including a new solar power system for $20,000 – this system has already demonstrated a significant return on investment. Other key additions include a replacement tractor, various hospitality upgrades, plus other replacements of essential nature.

5. Other contributions – highlights from key Club activities – extracts from Management Accounts X$000

Membership / Corporate fees/ Entrance fees -Income note 1

2014/15 2013/14 1,494

1,339

Berth sales and leasing - Income

142

141

Trading and hospitality -contribution

199

214

Ramp -contribution note 2

113

104

18

32

[11]

13

3

24

Slipping - contribution note 3 Marine Academy - contribution note 4 Associations - net contribution note 5 Sponsorships North Haven Property note 6

38

nil

[675]

[536]

174

154

Head Office Expenses including administration salaries [ex interest paid] [1,124] note7

[1,274]

Port Vincent Marina - contribution

I would like to highlight some of the Club’s performances:

Interest paid

[9]

nil

1. The Club generated an Operating Surplus / Total Comprehensive Income [after non cash / depreciation costs] of $112,147, compared to $8,345 surplus in 2013/14, $55,075 loss in 2012/13 and $161,995 loss in 2011/12. Note that effective depreciation costs decreased in the current year by $3,212. This result is extremely pleasing - management is to be commended on achieving this result.

Interest received

20

44

2. The Club’s Earnings Before Interest, Depreciation, Amortisation [EBIDA] for the year was $567,556, as compared to 2013/14 $457,693.

3. The new Western Basin Breakwater was completed at a total capital cost of $2.1m, including all preliminary costs such as design engineering. Careful management resulted in this project costing well below the original estimated cost. Due Cruising Yacht Club of South Australia Annual Report for 2014/2015

8

Treasurer’s Report continued Note 1. Membership / Corporate Fees / Entrance Fees - 2014/15 includes the recovery of Port Adelaide Enfield Council rates now charged to the Club for berths - now recovered by increased corporate fees. .

Note 2. Ramp Contribution – included in the net contribution is consultant expenses of $7,680 being fees paid to assist the Board in determining the possible methods of maximising the best long term opportunities of this major asset.

Note 3. Slipping Contribution – Included in the net contribution from slipping was $37,386 expenses for repairs, including major structural repairs to the crane wharf, which had become structurally unsound.

Note 4. Marine Academy – The Marine Academy had a disappointing result, mainly due to receiving late instructor invoices from the prior year and with additional staffing costs being apportioned to the Academy. The number of courses held and the overall number of students were also less than the prior year. There is still strong Club support for the Academy as it’s seen as one of the few methods of recruiting new members to the Club, whilst at the same time offering essential marine safety and other courses to all members. The improved performance of the Academy will be a major management focus for 2015/16.

Note 5. Associations – The contribution to the Club from the Associations [Social, Fishing, Cruising and Racing] was below that of the previous year. There are a number of reasons for the decline in contribution including difficulties in finding new and retaining sponsors, fewer functions and lower numbers of people attending those events. Also there have been changes to the purchasing of food and beverage that overall sees the Club benefit but is not reflected in the net results of the Associations.

The net contribution from the Associations trading accounts for the year has been added to the existing Club House Development Fund and will be applied to this proposed development as soon as final plans / costs have been considered, together with the best method/s of funding same. We again thank the all the Associations for all their fantastic efforts in promoting the Club and generating funds for Club use.

Note 6. North Haven Property – These costs include very significant repairs to Marina East pontoons together with the full impact of the Port Adelaide Enfield Council rates.

This year council rates in 2014/15 were $125,479 - last year $8,362.

Note 7. Head Office Expenses – These costs include; accounting and audit fees, computing and internet costs, legal fees, printing and stationery, telephone, administrative salaries and related oncost, opening day expenses, bank charges, interest paid, bad debts, quality audits, postage, annual report expenses, staff recruitment costs and other sundry

expenses The Board is continuing to investigate any further cost savings, including carrying out a detailed review of our computer systems and software.

6. Cash and cash equivalents as at 31st May 2015 was $370,089. Last year $1,325,027. As mentioned above, surplus cash has been applied to the western basin breakwater and other capital expenditure. Bank Debt [Westpac] as at 31st May 2015 was $462,500. This loan facility underpins the new Western Basin Breakwater. It has been negotiated on attractive terms and conditions and is repayable over ten [10] years with equal annual principal instalments. In addition, the facility can be repaid early with no penalty, together with the right to offset any surplus cash the Club may have from time to time. As members are aware, most of the Club’s income is received in June / July from membership / corporate fees and during this period our effective debt with Westpac will be almost zero, due to the offset arrangements in place. As the year progresses, the debt facility will be drawn down to met normal operating expenses.

7. Net Assets / Equity as at 31st May 2015 was $13.092m. Last year $12.975m.

8. Both long service leave and annual leave have been reduced during the year – management are on track to continue to reduce this liability over the current year.

9. The Club still has two [2] major assets that are basically set aside for marina and clubhouse renewals / refurbishments [Sinking Fund]. The first is the 28 unsold berths in the Western Marina Basin, The Board does not anticipate any material sales of these berths until the general economic conditions in the State improve – which should see new boats coming into the State, hopefully into our Club. The second major Club asset is the North Haven Boat Ramp facility and the adjoining land / car parking area. The Board has during the year sought professional third party advice as to the best method of looking at maximising the value of this asset to the Club, to allow it to be applied to future capital commitments.

No decision(s) have been made, however very valuable information has been and will continue to be developed that can be considered and applied at the appropriate time.

Notwithstanding the above, the Board has formulated a strategy that has already been implemented to refurbish and extend the life of Marina East.

Long Term Financial Plan including the strategy to refurbish Marina East

Members have been previously informed that the Board has been working on a very detailed forward ten [10] year financial plan, now completed. The highlights / forecasts of the ten year plan are summarised as follows; 1. All expected capital expenditure both essential (and some non-essential) has been documented. This expenditure ...continued over page 9

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Treasurer’s Report continued includes items such as; hospitality, kitchen, dining room upgrades, bathroom upgrades, office / computer upgrades and replacements, slipway priorities and upgrades, possible environmental upgrades, equipment upgrades and replacement , Port Vincent upgrades. The most immediate upgrade / refurbishment are the overwater assets at Marina East, followed by an upgrade of the Club’s hospitality facilities, in particular the bar and patio areas.

2. All these items have been financially modelled and included into detailed financial plans, encompassing projected profit and loss accounts, balance sheets and most importantly, forward cash flows. The profit and loss modelling has been undertaken on a very conservative basis - estimated future CPI has been used as income and expense inflators, sales of new berths (Marina West) have not been included given the current environment, no major asset sales have been forecast, and only very modest membership growth forecasted - what has been forecasted is strict budget controls to deliver core underlying earnings, the type of earnings we have seen from the last few years from trading and the application of the cash from these earnings to pay off the Marina West breakwater debt over ten years and apply surplus cash to Marina East refurbishment , then simultaneously consider the bar / patio upgrade. The plan has been very carefully considered [with many different models and sets of assumptions] by the Board and has been reviewed/discussed in micro detail with the Club’s external financial advisors.

3. Commencing in the 2015/16 financial year, the Club will employ two [2] fulltime, suitably trained persons to continue the Marina East refurbishment, including repairing the walkways, fingers, barge boards, and all services. These two employees will be a capital expense, as will the materials they use. A full and detailed works program has been developed with the assistance of Board Member Mr. David Murray. In addition to these two [2] full time employees, the Club will employ one [1] other marina repair person to assist (this persons salary will be classified as operating repairs and maintenance). Where fingers are found not to be repairable, new fingers will be purchased and floated into position. The trail that has now been underway during 2014/15 has shown highly pleasing results. It is expected that this works program will take six [6] years - at the end of six years, Marina East life will be materially extended for a fraction of the cost of purchasing new marina walkways and the associated (major) disruption to the Club. Providing management can continue to deliver the current operating results, this major project will be funded internally, without extending the current borrowings. The continuing support of the Members is using the Club’s facilities is very important in order for these capital works to be internally funded.

4. The next project is the bar / patio area upgrade - it would be highly positive to see the Associations get behind a program to generate further funds to apply to this project.

Notwithstanding , the Board is currently seeking competitive Cruising Yacht Club of South Australia Annual Report for 2014/2015

10

quotes to carry out these works in the short term, given that the current bar/patio area is very tired and desperately in need of an upgrade. To allow these works to happen sooner rather than later, the Club may have to consider extending its current debt [$462.5K]. These decisions will be carefully considered by the Board before any decisions are made.

Summary

An enormous amount of financial planning/modelling work has been undertaken over the past 18 months, to fully support strategic decisions taken/to be taken by the Board. This work has resulted in a formal strategy to further improve the Club’s assets and where possible, extend the working lives of existing assets such as Marina East.

Importantly, the finances of the Club are in good shape – our Balance Sheet is relatively strong.

Your Board has implemented a ten year financial plan, incorporating projections that have been extensively modelled.

There is now in place a solid strategy for significantly extending the working life of Marina East and at this stage the Board is not relying on the selling of any Club assets.

The master plan and any or all documents relating to this very important strategy can be viewed by appointment with the CEO and or the Treasurer.

I would like to personally thank the strong leadership of the Club President, Andrew Saies, in guiding this process, and all the Board for their hard work and support. Special thanks also go to Club management and staff for delivering again the core underlying earnings and performance to allow this master plan to be implemented. Now that the Club has a ten year financial plan in place, if prevailing economic conditions become more difficult, expenditures can be scaled back without materially affecting the underlying core functions of the Club.

The Board have worked hard to ensure the best possible outcomes for all Members.

I look forward to the year ahead. Happy boating for 2015/16.

Chris Wood, Treasurer

Commodore’s Report Being well into my second year as Commodore of CYCSA, I am extremely honoured to have had the opportunity to serve the Club. Having been involved since the Club’s inception in 1973 as a Foundation Member, my only other contribution was to introduce and establish the concept of the Groundswell magazine.

In those early days it was a small humble magazine with content gathered and overseen by the late Bill Henry and Bryce Kinnear.

Groundswell has evolved into the classy gloss magazine thanks to the dedication of its editors. The Commodore’s role has been rewarding but my only wish is to have more time to dedicate to the position. Competitively sailing both at the CYCSA and interstate limits my time at the Club. However it does keep me abreast of how other Clubs operate and gives a high profile presence to our Club interstate. When asked why I accepted the position as Commodore it is a very simple answer. It is a chance to give back to the Club some of the great years I have experienced as a sailing member.

One of the main advantages of the position is that I have firsthand knowledge of the running and the financial positioning of the Club. I have attended the majority of Board Meetings and although I have no voting rights I do have a voice to what the members expect of the Board. There have been a few members who have been misinformed as to the viability of the Club and voiced inaccurate concerns to me. The Western Breakwater extension did place unexpected financial pressure on the Club however it was essential the work be carried out for the protection of boats and the future of the Basin. The project was professionally handled coming in under budget and having minimum effect on the cash flow of the Club due to prudent financial planning. The Club is now in a position to progress soundly into the future. It is my belief the Board is very astute and only has the future of our Club at heart.

One of the main tasks I have set as Commodore is to ensure the upgrade of our patio and bar area. When weddings and other functions are held in the dining room and main bar, members’ facilities are compromised. Coming back to our Club from a hot day on the water, is often not an enjoyable experience. The patio has no air conditioning, poor bar facilities and old décor. The Club needs the income from weddings to support our infrastructure but that should not be at the expense of members. You can follow the progress of our upgrade in the CEO and President’s various reports. Being part of a committee that has been formed to ensure a constructive and affordable financial approach is taken; I look forward to helping to bring this project into being.

As I have experienced firsthand the facilities other Clubs offer their members, I feel quite passionate about helping to drive this project. They upgrade their facilities regularly and their members show renewed interest in their Club, a sense of pride and are more actively supportive. On our doorstep is a prime example. The Royal South Australian Yacht Squadron has recently completed a major renovation on their entrance and upstairs dining facilities.

They are now drawing increased interest as a venue and larger member numbers at Club functions. It is my belief we must move ahead not only to attract outside interest but to cater for our future new and existing members who will ensure the Club continues to enjoy a successful future.

Unfortunately the Marine Academy did not achieve the enrolment numbers they expected this year. Matt Young, Marine Academy Coordinator and Vice Commodore, Rowley Richardson have been working together to develop new instructors and new courses to help encourage more students. The Marine Academy is open to members as well as the public to assist in developing skills in sailing, powerboating, seamanship and navigation. The Academy is internationally accredited and offers courses in basic sailing skills right up to three day live aboard training courses including Sea Survival Certificates.

Member’s donations, through the Marine Academy Foundation have been used to replace and enhance the assets used for training by the Academy. Funds have assisted with the purchasing of a floating dock for CYC3, our Club’s ridged inflatable boat which is used for training purposes. This dock also improves on water response time for the benefit of members, guests and the boating public. CYC3 has already assisted with the rescue of a man overboard, collected crew from a sinking yacht and assisted SA Police with saving a vessel that hit North Haven Breakwater during a storm. I sincerely thank the members who have got behind the Foundation and assisted with the purchase of new equipment for the Academy. Donations can be made as shown when renewing your annual Club membership.

The Club’s Social Activities Association, under Chairperson Pam Humeniuk, I must say has staged some excellent functions. My wife and I were fortunate enough to attend the successful Boat Hop which was followed by a pleasant dinner at the Club. It was a pleasure to meet some of the boat owners whilst sharing some stories, fine cheese and wine on each of their boats.

An ‘Evening with David Tillett’ gave us all an insight into his experience with the International Sailing Federation, the Olympics ...continued over page

11

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Commodore’s Report continued and the Americas Cup. I believe that other ‘colourful’ characters will be scheduled to be interviewed in coming months. I did say “don’t miss the Commodore’s Dinner”. Pam’s team excelled with their decorations, music and choice of entertainment. Guests seemed to enjoy the music by the renowned pianist/composer Bruce Hancock and his Quartet, joined later in the evening by vocalist Marlene Richards to deliver some great dance music. The night, compared by Wayne ‘Flipper’ Phillips, was a credit to the Social Activities volunteers and leaves a challenge for next year.

An annual favourite is the CYCSA Fishing Association’s Crab Catch and Cook Day. The crabbing day, run by the Association committee and volunteers, was more focused towards members this year, with numbers being capped to 125 people. This gave better access to the BBQ area and proved more manageable. The crabs were running and plenty of crabs and salads were eaten on the day. The event will again be scheduled in February next year.

Our next Opening Day is not too far away and the Club plans to again take the official Sail Past from the deck of the One and All. Last year we were fortunate enough to have good weather which gave us the opportunity to have all the formal ceremonies outside.

With our Scottish piper summoning members and guests to the Club lawn area for the proceedings, I believe helped make the day memorable. Even though we had to compete with the Rolling Stones concert in the evening, we managed to attract a strong crowd. I trust the weather permits another spectacular Opening Day on Saturday 31 October 2015.

The past year did not see our biggest fleet of racing yachts on the start line. However the intensity was still there. I will not name all the winners over the season but I enjoyed the battle between Shining Sea winning IRC Division 1 and Concubine winning the Offshore series. What was going to be a battle of these great competitors turned sour when weather conditions limited the Premier’s Cup to two races giving Aikin from the Squadron the Premier’s Cup. The other great race of the year, the Adelaide to Port Lincoln was won on IRC handicap by Shining Sea and Secret Mens Business taking out Race Week with Yacht of the Year going to Concubine. A thank you to the Racing Association (REX) for the effort put into designing our race program and a thank you to all the ‘Boys’ who dedicate their time on the Start Boats.

The Volunteer of the Year for 2014/2015 is Ray Evans. Ray can be found at the Club most days of the week, assisting staff or fellow members with any necessary task. Not only attending to most of the general maintenance on CYC1, Ray has assisted with carpentry, painting, metalwork repairs and even sausage making – Ray is passionate about his Club. Nothing is too much for Ray, he is a most worthy recipient of the Volunteer of the Year Award.

A special thank you to Ron Yeates, who celebrated a milestone 30 years as a volunteer on the start boat. A true champ! A mention also to our Race Officers John Gibson and Ray Evans, who have the thankless job of setting courses to please every competitor.

Also a special thank you to Craig Evans and his office staff who continue to give their support to allow me to carry out this privileged position more effectively. I wish all our members a successful up and coming season and whether fishing, cruising, racing or just enjoying the club atmosphere, I trust you all have a great summer on the water.

Geoff Boettcher, Commodore Cruising Yacht Club of South Australia Annual Report for 2014/2015

12

Finance, Audit and Risk Committee Report The Finance, Audit and Risk Committee (the Committee) met on four occasions during the 2014/2015 Financial Year on a formal basis. The Committee consisted of the following members during the financial year: Peter Hall (Board Member and Chair) Chris Wood (Treasurer and Board Member), Wayne Coonan (Board Member), Don Venn (senior Member), Robert Ferguson (senior Member) and CEO Craig Evans (ex officio) In accordance with its responsibilities, the first task of the Committee was to review the draft audited accounts for 2013/2014, the audit timetable for the current year and finally a review of the unaudited accounts for 2014/2015. Internal controls were also revisited and confirmed with the Auditors.

Other matters of significance to the Committee were the risks associated with the Marina West Breakwater Project and its ultimate completion within budget, the successful tender process to select a new insurer to satisfy the Club’s insurance requirements, verified by independent evaluation, and not least, the Solar Panel Project to defray the cost of electricity consumed on Club premises. The latter Project was driven by David Murray, Board Member and Chair of the Facilities Committee.

The Committee also held a watching brief over trading results from month to month and other areas where unusual risks to current expenditure were identified.

I would like to thank all the members of the Committee for their expertise and assistance during the financial year.

Peter Hall, Chair Finance, Audit and Risk Committee

13

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Facilities Committee Report Western Basin Breakwater extension The job is done. Preliminary works involving bathometric surveys, wave modelling, engineering, legal and associated consulting commenced in March 2011 and by April 2014, the first rocks were being placed. The work, including navigation aids was completed in December 2014 and came in under the construction budget to the tune of some $53k. However, at one stage the job cost looked like increasing significantly with the original rock supplier wanting to increase their price but that was averted when we changed to Southern Quarries who not only held to the original price but also came in with $42k in Club sponsorship. On behalf of all members, a mighty thank you to senior member Brett Brown and Southern Quarries for this outcome. Inclusive of preliminaries, the total cost to the Club, excluding GST was $2.1m. A special thank you to our CEO, Craig Evans, whose project management, oversight and negotiations saved the Club in the order of $200k on the overall job.

The break water extension is providing a more comfortable wave environment in the northern part of Marina West, substantially improving conditions for users of the marina and will add to the marketability of the unsold berths. The benefits extend beyond our marina by cutting out the surge that comes through the outer breakwater entrance - that has damaged private pontoons in the past, and flattening out the water for all boating traffic in the North Haven Marina precinct.

A lot of time and effort from management and the Board went into seeking a $1M grant from the South Australia Boating Facility Fund to assist in the funding of the project.

Despite strong support from the wider boating community (whose boating facilities levy money goes into the fund) and a strong recommendation from the South Australian Boating Facility Advisory Committee (SABFAC) to award the grant, the Minister took a political stand on the matter and quashed the award by placing onerous conditions on the funding that were unacceptable to the Club.

Early plans for realising the value of our boat ramp and car park asset The Board is looking to “broad canvas” development options for our boat ramp and car park land holdings to maximise its value in

Cruising Yacht Club of South Australia Annual Report for 2014/2015

14

the future. The objective is to attract investor interest in readiness for a more politically favourable environment. Watch this space!

Other Western Basin works The boat ramp surface had developed concrete cancer and associated erosion that has been repaired, there has been landscaping work at the entrance and corrosion in the amenities building steel work has been addressed.

Marina East Floating infrastructure repair and replacement By way of background, estimated costs for replacement of Marina East (excluding the poles which are in good condition and demolition and removal of existing pontoons) is just shy of $5m.

This is the sum of AB $1.74m; CD $1.54m; EF $1.37m; Connector $0.2m. However, that figure is now “academic” because much of the Connector walkway has been repaired, AB and CD “T” heads have been done and 14 fingers have been either replaced or repaired.

As an alternative to replacing Marina East, a strategy of undertaking a rolling works program involving a mix of repair and replacement has been developed.

Survey work has been undertaken by the Club’s maintenance staff and management to identify, on a finger by finger basis, which ones need to be replaced and when, and which ones can be repaired and when. Due to construction differences, a larger proportion of the southern than the northern fingers will need replacing.

Costs have been assessed and averages based on the most common 12m berth are as follows: To recondition a finger costs, in materials and labour, about $6.5k.

That applies where the finger is suitable for reconditioning and a good number – perhaps around 60, are not.

The average cost to bring in and install Bellingham fingers from Brisbane is about $16k - we may be able to get that cost down with a local build, saving freight from Queensland. A local build may be under a licensing agreement with Bellingham or possibly by having a local contractor come up with their own design and construction. Both alternatives are under investigation.

Facilities Committee Report continued The Board has agreed an increase in the Capital budget for Marina East that will allow for replacement of about 10 fingers and reconditioning of about 17 per year. Over 6 years, the aim is to replace about 58 to 62 fingers and repair about 98 to 102, at an all up cost of about $1.7m. There are 14 that have already either been replaced or re-furbished, making up the total of the 174 Marina East fingers. In addition, there will be pontoon works (the pontoons are the main walkways that the fingers connect to), the EF “T” head and additional EF Connector work – allow about $0.8m.

Risks will be offset by: • The Board’s approval to have a dedicated 2 man team on the rolling capital program with a third man available from the repair and maintenance staff as a back-up •

Cost savings to be made by improving work systems and process during the rolling program – increasing efficiency and effectiveness with experience gained on the job

•

Cost savings to be made by having fingers manufactured locally under licence or by a contractor, saving on freight from Queensland and possibly achieving lower build costs

Broadly, the cost of the mixed repair and replacement strategy is, in current dollars, exclusive of GST about $2.5m over a 6 year rolling program. This represents a capital cost of about $420k per year, an increased spend of about $150k per year over the current combined budget for staff on repair and maintenance that will transfer to capital works and over the current capital budget allocations for Marina East.

•

Additional funding availability due to future savings to be made in the Club’s operations reducing budget pressures.

The 6 year time frame is a desirable balance to undertake repairs and replacements within an achievable budget and to squeeze out as much remaining life from the current infrastructure as is practicable. The 6 year period is not hard and fast – it may be possible to run the program out a little longer depending on how the infrastructure holds up.

Crane wharf repairs

Key risks with the strategy are: • Some fingers and pontoons may need to be done earlier than anticipated due to unexpected rates of deterioration – however, the rates of deterioration have been conservatively assessed so fingers generally may provide service for a little longer rather than a little less than the times estimated

The rolling repair and replacement program approach also overcomes practical problems of keeping a marina functional and accommodating boats if a replacement strategy were used.

Moreover, it is realistic to achieve within our budgets.

The concrete and steel structure supporting the crane wharf had progressively suffered the ravages of concrete cancer and corrosion to the point where it was deemed to be structurally compromised. Loading on the wharf was restricted until repairs were effected to the concrete piers and steel framing that was completed at a cost of about $37k.

Energy - Solar PV system A 30kW solar PV system was installed on the Club-house roof with an estimated return on investment of 1.5 years on the $22.4k spend. See my article on pages 28 and 29 of the May 2015 Groundswell for details. Actual savings over the first 6 months of operation are tracking well to achieve the estimate ROI.

•

Being able to sustain the work program with staffing available

•

Re-direction of staffing to other unforseen urgent priority works eg if there is a need to deal with a marina repairs and maintenance in Marina West or at Pt Vincent

An evaluation is currently underway on changing the Club’s 400W car park lights to 100W LED fittings.

•

Practical issues associated with the process of replacing some sections of the main walk-way pontoons requiring new and novel methods to be developed, including dealing with the water line and power conduits during the process

•

Any unforseen material adverse budget climate restricting available funding

Functions, particularly weddings, have made a substantial contribution to the Club’s bottom line - about $300k over the past 5 years. Shade sails had been part of the original concept for the area but became a Category 3 development. To gain approval, the Club had to go through the ERD Court where local residents’

Ceremony area shade sails

...continued over page

15

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Facilities Committee Report continued objections and the Club’s responses were determined in the Club’s favour. Construction however was delayed due to other budget priorities and was completed in July 2015 at the originally quoted price of $36k ex GST. The shade sails will add to the marketability of our functions venue, provide a safer environment for all those who use the area and fulfils the Club’s duty of care to provide a better fit-for-purpose venue. While it cannot be quantified, the Board is looking to an even greater contribution to the bottom line as a return on this investment.

Tractors Following the purchase of the blue tractor in the last financial year, the yellow tractor has also now been re-conditioned and will serve as a yard tractor. The yellow tractor will also act as an emergency back-up for the blue tractor for hard-stand members to launch and retrieve from the slipway ramp.

Council approval has been granted for a tractor shed to house the tractors freeing up the old shed, which was too low, for use for Marina East refurbishment workshop functions.

General maintenance and improvements

a floating dock, installed on the Connector on the west side of the Marina East bridge was purchased by the Marine Academy to take the RIB to enable quick launch and docking rather than have the RIB sit on a trailer in the car park

•

paving has been installed by the sail storage containers in a joint project with Ocean View College where students provided labour and learnt paving skills, including skills in use of the school’s equipment

•

a second-hand ute has been purchased, primarily to assist with Marina East refurbishment works but also serves as a general run-around vehicle for the Club’s staff who had previously been using their own vehicles and claiming mileage.

Pt Vincent A shade sail is to be installed over the BBQ area – the aim is to have it in place for the coming summer season.

One of the fingers in the marina broke away and has been repaired and reinstalled.

David Murray, Chair Facilities Committee

General maintenance and improvements include: • re-painting of the function room •

progressive replacement of lights with low energy LED fittings

•

storm water sumps in the main car park, hard stand and slip areas have been re-done

Cruising Yacht Club of South Australia Annual Report for 2014/2015

•

16

CYCSA Marine Academy Advisory Committee Report On behalf of the Committee I am pleased to present the annual report of the Marine Academy.

Courses All together there were 197 course enrolments this year which was slightly down on the previous year’s 221 enrolments. Discover Sailing, Start Yachting, Start Powerboating and Safety courses were the most popular. Five live aboard courses were conducted on Academy 1 with the Marine Radio and the Day Skipper Theory courses attracting reasonable numbers. Of those attending 41 or 21% were members, 156 or 79% were non-members with 29% being female and 71% male. Similar to the previous year 10 took up club membership.

Human Resources Matt Young as Principal of the Academy has coordinated activities on a nominal 7 hour per week basis. Brett Yardley has maintained his position as Chief Instructor with John Edwards, Andy Shipp and Rod Hunter as instructors. Several members have shown interest in becoming instructors and have embarked on instructor training. As a result it is expected that there will be four new Powerboat and Keelboat instructors for the start of summer 2015. The committee acknowledges the support of the Club’s administrative staff, Racing Manager and CEO all whom have supported the Academy in their various capacities.

Marketing and Administration Since its inception eight years ago significant advances have been made in marketing and administrative operations. Courses are now advertised in a course brochure and on the web. The Marine Academy web pages have gone through constant development and now present a professional face for the Academy and the CYCSA. The ability for students to enrol and pay for courses on line has substantially assisted with these procedures. Standard operating procedures have been developed for most Academy tasks. As a result a large proportion of the administrative work is now completed by the administrative staff. This includes enquiries, enrolments, sale of books, completion of certificates and support for instructors.

Marine Academy Foundation In 2014-15 members were invited to contribute to Marine Academy Foundation to support the activities of the Academy.

Support for the scheme was enthusiastic with 445 members contributing a total of $23,050. These funds have been used to replace and enhance the assets used for training by the Marine Academy. Items purchased include a touch screen chartplotter with Navionics charts, instruments for wind speed and direction as well as depth and boat speed, a new VHF radio with DSC, an AIS package and a new headsail all for Academy 1. A new cover and a floating dock system for CYC3. A 10 man liferaft for training has been purchased and new stronger and movable tables to replace the existing tables in the Kinnaird Room have also been purchased. Details of this expenditure is included in the financial statement.

Financials The financial statement for the Academy, included with this report, shows an income of $58,335 with expenses totalling $69,884 resulting in a loss of $11,549 after a positive result of $12,963 in 2013/14.

Originally the fixed cost of the Marine Academy such as the Coordinators wage and running costs of vessels were covered by the Club. Over the past few years these items have been attributed to the direct expenditure of the Marine Academy in line with original goals that the Marine Academy should cover its costs. This now includes 0.1 of the Racing Managers salary for Marine Academy duties. 2013/14 saw the Marine Academy operate with a healthy surplus; however this surplus was assisted by the very late invoicing for work completed in 2013/14 not being submitted until the 2014/15 year. The result of this was to start the year with a negative balance of approximately $6,000.

Future Direction Only through an increase in enrolments can the Academy cover its costs. To achieve this there must be an increase in non CYCSA members in courses. Therefore the primary focus of marketing will be to attract more non-members. This will require a revamp of our marketing material and collaboration with our yachting partners. An initial meeting with Ian Leeson, Development Manager, Yachting SA has shown a willingness to assist with the development and promotion of our program. Parents of students undertaking school sailing programs have been identified as a potential market. The Twilight and Saturday post-race gatherings ...continued over page

17

Cruising Yacht Club of South Australia Annual Report for 2014/2015

CYCSA Marine Academy Advisory Committee Report continued offer further opportunities for promotion particularly to racing members on the various aspects of racing and sail handling.

To minimize the risk of a negative return for 2015/16 it is proposed to offer a 6 month program with a review towards the end of November 2015. Throughout these 6 months targets for income and expenditure, enrolments, marketing and instructor development will be closely monitored.

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 to the Marine Academy.

Rowland Richardson, Chair CYCSA Marine Academy

Cruising Yacht Club of South Australia Annual Report for 2014/2015

18

Income Statement 2014/2015 Income SSSC $5,505.00 Safety Sunday $1,296.00 Intro Sail & WEA $0.00 Sail Cruising Scheme $32,216.00 Instructors Course $0.00 Youth Keelboat $0.00 RYA/YA Theory Course $4,595.00 Marine Radio Course $3,127.00 National Keelboat Scheme (NKBS) $0.00 National Powerboat Scheme (NPBS) $5,160.00 Sponsorship/Fundraising $0.00 SA Water Atlas Income $5.00 Course Books Income $898.00 Other Income $3,636.00 ICC Income $1,897.00 Total $58,335.00

Expenses SSSC $2,256.00 Safety Sunday $560.00 Intro Sail & WEA $86.00 Sail Cruising Scheme $25,173.00 Instructors Course/Accreditation $0.00 RYA/YA Theory Course $5,326.00 Marine Radio Course $3,378.00 National Keelboat Scheme (NKBS) $0.00 National Powerboat Scheme (NPBS) $4,688.00 Youth Keelboat $0.00 Administration $0.00 Advertising $0.00 SA Water Atlas $0.00 Course Books $569.00 Other expenses $9,896.00 MA Coordinator wages $11,005.00 R&M - Academy 1 $5,196.00 R&M - CYC3 $10.00 ICC expenses $1,066.00 Fuel for Boats $407.00 RYA Radar Course $268.00 Total $69,884.00

2014/2015 Result ($11,549.00)

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

Activities Management have built upon the advancements of last year to implement the concepts and materials to market new membership concessions when purchasing hardstands, links to Marine Academy programs and opportunities to gain crewing experience as well as new tailored sponsorship packages.

The committee’s focus this year has been to investigate the short to medium term opportunities to upgrade member facilities within a prudently managed budget. In recognition of the need to adequately consult members, a survey has been designed for circulation in the new financial year. It is important to receive a clear appreciation of members’ preferences and the committee asks members to recognise this by completing the survey for their ultimate benefit.

•

Preparation of new Advertising Kit to secure new advertisers for Groundswell

•

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

Special thanks to the members from the Club’s Administration Team; in particular Laura, Mellissa and Craig for their patience and support. The club is fortunate indeed to have the expertise and enthusiasm within its existing team to support the committee’s activities as Mellissa succeeded Laura, whose contribution was greatly valued.

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

The process of preparing for a potential facilities upgrade involves evaluation of cost and budgeting implications and the development and testing of several financing scenarios. In order to ensure any such developments meet members’ expectations the committee acts in concert with management, the Board and other relevant sub committees providing a coordinated and carefully analysed approach.

Committee Projects for the year included the following: •

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

•

Member recruitment strategies o Special offers to Marine Academy students to join the Club

19

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Groundswell Editorial Committee Report Groundswell is an important communication and promotion vehicle for the Club. It attempts to reflect life at the Club by involving all interest groups and individuals through the publishing of articles about their activities and interests.

The committee works together to gather articles for each of the four editions published annually in both printed and on-line form, aiming to encompass a wide range of activities and events.

Putting each magazine together takes time for the small group of volunteers on the Committee. We really appreciate the input from members and in particular from the Club administration, the Commodore and the Associations. Without the interest and response from our members there would be no Club magazine publication of this type.

Jess Hargreaves, Racing Manager, and Rob Sellick, Chair of the Racing Association have been wonderful contributors for the Racing Association and racing activities/events in general. Racing is an integral part of Club life and to have such informative and comprehensive reporting is valued by members.

The Chairperson of each Association contributes articles about their functions, as do members participating in social, cruising and fishing events. Pam Humeniuk’s Social Activities Committee continues to be very active in promoting their popular social events and new initiatives. The CYCSA Marine Academy Coordinator, Matt Young, has also kept members up to date on events and courses presented by the Academy.

Regular contributor and Groundswell Editorial Committee member, Owen Mace, always provides well researched and educational articles. Always looking for new topics to present, Owen is happy to work with other members on boating issues of interest and even write collaborative articles. Don’t hestitate to contact him – berth C28 aboard the lovely Espirit.

Cruising voyager, Alan Noble, has contributed a number of informative articles about sailing in local waters and we appreciate his willingness to share his knowledge and experience.

For Groundswell to maintain the high quality others say we have achieved, input (and feedback) from all areas of the Club is needed. If you have been on a cruise, race or a fishing trip, completed a Marine Academy course, that you have found interesting, it’s likely that other members will be interested too.

Cruising Yacht Club of South Australia Annual Report for 2014/2015

20

The Editorial Committee currently comprises myself, Mellissa Vahoumis, Owen Mace, Terry Lockwood, Don Burrow and Trevor Paynter. Please feel free to ring, email or discuss with any one of us ideas to improve our journal and maintain its relevence to members. You can submit your contribution directly to Mellissa, Club Communications and Members’ Services. Mellissa is an important part of the editorial committee and contributes tirelessly to the production of the journal with advertising coordination, Club news, editing, proof reading and print liaison.

I would especially like to thank Laura Turner, who left the Club in December, and acknowledge her excellent and consistent contribution to the editorial group over many years.

One member said to me early this year that she had a funny boating experience she would have liked to share in Groundswell but “didn’t have the writing skill or enough adjectives to make it sound interesting”. Don’t worry, we’ve got that covered.

Prose, poetry, photographs are always welcome. The Editorial Committee always proofs articles, making editing changes and correcting grammar where required. Contributions are generally published within the magazine’s editorial style guidelines (unless a contributor’s article is specifically intended to be ‘different’).

Advertising is an important component of Groundswell in order to make it cost neutral to members. We appreciate our long supporting advertisers who, though their support, enable us to go to print. And there’s always room for new advertisers.

Trevor Paynter, our graphic designer, presents and prepares Groundswell ready for printing and contributes enthusiastically to the editorial process. He clearly enjoys his work. Reflex Printing do a professional job of printing and getting the magazine out to members.

As an editor, I’ve derived considerable pleasure working alongside other members on Groundswell and take pride in contributing to our publication. We are always looking for volunteers to join our editorial group in some capacity such as proof reading articles, talking with other members or photography. Please make your interest known to us. You will be most welcome and it is a terrific way to support our Club.

Thank you for your support over the year.

Gay Footer, Editor Groundswell Editorial Committee

Association Reports Fishing I would like to thank members and the CYCSA for the opportunity to represent the Fishing Association members and also be part of the 2014 – 2015 committee, which consisted of Peter Newmarch (Deputy Chair), Vlad Humeniuk (Secretary), Bruce Tasker (Treasurer), Romeo Macolino, Trevor Paynter, Leica Theodore and Geoff Wiggins.

The year of 2014 - 2015 has been a good year for FAC. We have held successful functions for members and put in planning to revitalise events but also add new events.

Our year started off with Boating Showcase in Nov 2014. With this event we moved away from our previous theme and went to an event focused on our members and members boats. Many members boats were on display for all to experience and, with liberal amounts of wine flowing to wash down the great food provided by the CYCSA kitchen staff, the night was a long one with many a sore head the following day. This event was provided at no cost to FA members so it was great value. Members are reminded that these events can only continue with your support.

Boating Showcase 2015 is already being planned and will see many exciting things incorporated into this year’s event;, watch this space.

Crab Catch and Cook Day was once again a successful event for members with crab numbers and weather playing their crucial part. After a jumpy start and also listening to members’ feedback we focused on an event to cater for FA members and as such reduced the seating to target this core group. This was achieved by removing the hire of the large marquee and utilising the CYCSA BBQ facilities. We had an above average amount of boats participating and catching crabs. This resulted in good numbers of large crabs being caught and put into the tally. Crabs where expertly cooked & cleaned by the FAC and volunteers. We can’t hold this event without the support of volunteers and wish to officially thank them. A thankyou is also extended to the CYCSA kitchen & staff for the great salads and support during this day.

The FAC is planning a good many things this year, with the inaugural Cockling Day at Goolwa to kick it off. While dates have not yet been set (as it is due to weather), it will be after cockling

season opens on 31st Oct. This will be a good opportunity for members to come and have a bit of fun catching and collecting cockles and enable you to restock your bait ready for a good fishing season ahead.

This will be followed later in the year with a Boating Showcase Day, Crab Catch & Cook Day next year and then also with a few “Come-Fishing” days throughout the coming months.

For all, at CYCSA, the Fishing Association are always looking for new ideas and events so please feel free to make contact directly with one of our committee members or even nominate to become a committee member,. New ideas and new members are always welcome and appreciated.

The Fishing Association acknowledge the work and commitment of committee member Leica Theodore and wished to nominate Leica as their Association Volunteer of the Year.

The FAC wish to thank the members and CYCSA for their support and look forward to getting together at future events.

John Colella, Chair Fishing Association

Income Statement 2014/2015 Income Subscription Fees $2,759.21 Crabbing Day Income $1,854.53 Sponsorship $0.00 Shirts / Burgee /Flags Sales $0.00 Seafood Night Income $0.00 Fishing Competition $0.00 Boat Party Income $250.02 Other Income $0.00 Total $4,863.76 Expenses Subscription Expenses $0.00 Bar / Catering Expenses $374.01 Crabbing Day Expenses $816.82 Shirts / Embroidery $147.27 Fishing Competition $0.00 Seafood Night Expenses $274.73 Boat Party Expenses $745.45 Flags $0.00 Other Expenses/Meeting/Badges $997.05 Total $3,355.33 2014/2015 Result 21

$1,508.43

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Association Reports Cruising

Income Statement 2014/2015

The Cruising Association has continued with much enthusiasm from a variable membership. The most popular activity remains the regular ‘Second Saturday BBQs’ held in the outdoor BBQ area of the Club during the warmer months of the year. A smaller, but possibly far more devoted, group often meet for a BBQ on Tuesday nights in any weather. We are keen to encourage members to continue to participate in both of these social occasions, as they are a great way of getting to know one another and for sharing cruising and maintenance ideas.

The City of Adelaide Clipper Ship Committee held a presentation in December 2014 for boats who supported the first open day flotilla up the Port River last year. A number of skippers from the CYCSA, including many members of the Cruising Association were given Commemorative Medallions as a memento of the occasion.

The committee has tackled a number of issues during the year, the main ones being: organising (or helping coordinate) cruising events: helping improve the functionality of the SA Cruisers Google Group and planning for mooring repairs and additions.

Successful cruises have been held to Port Vincent (on the October 2014 Long Weekend and Easter this year) and to Kangaroo Island (over the Xmas New Year period). Three yachts set out just before the Adelaide Lincoln Race in February intending to make a cruising voyage of the trip to Port Lincoln and back, but following winds and rolling seas in Investigator Straight turned some of the crew very green and the group disbanded at Western Cape Bay to do their own thing. Members of the Cruising Association also promoted their own trips in Gulf waters over the year using the SA Cruisers Google Group in the hope of finding boats to join them. Planning is well underway for a small fleet who plan to circumnavigate Tasmania over a 2-3 month trip in early 2016.

SA Cruisers continues to be great resource as a large number of cruising sailors across SA have the opportunity to link in to each other’s ideas and activities. While it is not officially part of the Club, a number of committee members of the Cruising Association are now moderators of the Group. We were keen to become more involved so as to give the Group some longevity and to help ensure any moderation of member’s comments was done in a fair and balanced way.

The main item of expenditure this year has been approximately $4,000 to assist with purchasing a shade structure over at Port Vincent Marina. The shade over the new BBQ will make life more comfortable for all CYCSA members that venture over to Port Vincent on warm summer days and is paid for through the generous donations that we receive from Charlesworth Nuts. A fitting tribute to Chappy Charlesworth who loved cruising these waters.

Finally I am stepping down from the Committee and wish the new Committee all the best for the future.

Richard Lea, Chair Cruising Association Cruising Yacht Club of South Australia Annual Report for 2014/2015

22

Income Burgee Sale $0.00 Sponsorship $4,000.00 Cruise of the Year $0.00 Other Income $0.00 Total $4,000.00 Expenses Hospitality $0.00 Flags $0.00 Entertainment $0.00 Trophies/Prizes $0.00 Other Expenses $3,900.94 Total $3,900.94 2014/2015 Result

$99.06

Association Reports Social 2014/2015 has been one of change for the Social Activities Association with new things being tried and experimented with.

Main events organized were: • Whisky Tasting Night – held in August, 2014 • Commodores Dinner held in September, 2014 • Progressive Dinner in Pt. Vincent Marina, October 2014 • Queens of Clean for our VMR radio stations • Show bags for children on Opening Day • Children’s Christmas Party • Carols on the Lawn – new Free event • Bringing in New Years Eve on Kangaroo Island • The Jeanneau Boat Hop – held May 2015 • Guest Speaker Evening ... with David Tillett held May 2015 This year’s committee consisted of: Pam Humeniuk – Chair Don Guy – Treasurer Morag Draper – Secretary Karen Johns Anne Burrow Joe Mezzini Polli Woods Jacq Heffernan Sandra Richards Pat Catley With the additional assistance of Pauline Garner, Vicki Pearce, Angela Holmes and Linda Mendrin. I would like to thank this wonderful group of people for their support and unfailing sense of fun.

A whisky tasting was something we trialed for the first time and it was well received. Forty whisky aficionados gathered in the Horizons Room to be skillfully introduced to various whiskies which we enjoyed with savoury ‘bar snacks’. The whiskies were ‘piped’ in by bagpipes which set the scene for a great night.

‘Everyone loves Romance’, and this year’s Commodores Dinner proved this saying once again. The scene was dark and moody, with stunning masks as the table centre pieces. Karen Johns and Sue Boettcher were the artistic inspiration of these wonderful sculptures. Soft lighting set the scene as the guests were welcomed to this special night with a red carpet receiving line by Commodore Geoff Boettcher with Sue Boettcher and President Andrew Saies with Susan Saies. The Queens of Clean again made

an appearance at the Dinner, with the funds this year going to send tokens of our appreciation to our local VMR stations in American River, Ardrossan and Tumby Bay. We had a Progressive Dinner planned for the October long weekend in Port Vincent. As always this event was ‘weather dependant’ and the forecast on the day of the dinner was dreadful. Most participants headed home and left a small dedicated band of stayers to enjoy the company and fun.

Each year the Social Activities Association organize the ‘show bags’ for the children attending Opening Day. This year we opted to purchase ‘real’ show bags and a variety of chocolate, chips and sweets bags were purchased at the time of the Adelaide Show. From the feedback we received, the parents and the kids all enjoyed these bags.

The Children’s Christmas Party was again held as an afternoon tea and the parents seemed to appreciate the timing at this busy time of the year. We had the big jumping castle and games to precede Father Christmas and then a fun afternoon tea of all the favourites and most importantly ice creams and honey crackles.

Trevor Kipling again gets our grateful thanks for his support and David Henderson for allowing Santa to arrive on his boat.

Parents only get charged for the cost of the child’s present and the shortfall in funds is made up by the committee with profits from our other events, and this year from the proceeds of the Christmas Raffle.

The Social Activities Association are always looking for new ways to engage our members and so this year rather than have a formal Christmas Dinner we had Carols On The Lawn.

The committee worked hard to sell raffle tickets to make this a FREE event for members. Linda McCarthy was our headliner leading the carols in her wonderful, enthusiastic way. We also had the Swing High Swooners appearing; a disability group who are mentored by Linda. This group epitomized the true spirit of Christmas and the 100 plus people attending this event got right behind our special performers and really enjoyed this entertainment. This is an event to be repeated this year, 2015.

New Years Eve on Kangaroo Island was impacted by the prediction of bad weather coming in, but the few boats and their crews who gathered on the sand at American River were able to celebrate the arrival of 2015 with fun and comradeship.

We had a new sponsor this year for the Boat Hop, and we welcomed Jeanneau aboard for this now almost traditional event. ...continued over page

23

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Association Reports Social continued

Income Statement 2014/2015

Over 100 people attended with a minor change of the meal being held in the Patio Area, rather than the BBQ area. The feedback has been that everyone had a great night and want to do it again.

Our Book Club has not been such a success with the attendance being very patchy. We have decided to disband this initiative and have advertised that there is a collection of books that members and friends can borrow in the Members Lounge.

The idea of ‘guest speaker’ events came about on the night I was invited to be present when David Tillett was honoured by our club. As a long standing club member I did not know of David’s impressive profile and right in our own club. After discussion with our committee we decided to highlight local and club members to our own members and this was our first: ‘An Evening With….David Tillett’, was a very successful event. Geoff Boettcher researched and proved to be an interviewer worthy of Parkinson. Thanks to David and to Geoff for making this such a successful event. We will be repeating this format and have our next such event penciled in for September, 2015.

Our nomination for ‘Most Valued Volunteer’ for 2015 is Karen Johns. Karen has been the creative person behind many of our table decorations at events for five or six years, and she has hand crafted all of the wonderful menu covers for our Commodore’s Dinner for the last five or six years. These items have become ‘collectables’ and I have members telling me they look forward to seeing what Karen has organized each year.

Pam Humeniuk, Chair Social Activities Association

Cruising Yacht Club of South Australia Annual Report for 2014/2015

24

Income Boat Hop $5,163.60 Christmas Raffle $1,008.18 Kids Xmas Party Income $1,036.37 Commodore’s Dinner $8,518.08 Evening with David Tillett $3,098.27 Other Income $0.00 Total $18,824.50 Expenses Boat Hop $3,855.50 Kids Xmas Party Expenses $1,457.90 Christmas Raffle $92.44 Commodore’s Dinner $9,558.28 Hospitality Expenses $1,181.92 Carols on the Lawn $55.27 Evening with David Tillett $2,368.17 Other expenses $0.00 Total $18,569.48 2014/2015 Result

$255.02

Association Reports Racing

Racing Association Committee members for 2014-15 were Rob Sellick (Chairperson), William Strangways (Vice Chair), Mark Hutton, Shevaun Bruland, Adrian Wotton and Steve Power. 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, Ray Evans and David Saies.

We recognise that this role is an often demanding and thankless task and we acknowledge the time and effort our ROs invest to facilitate our program. We also acknowledge the contribution and valued support of our Volunteer Duty Crews on CYC1 and CYC2, especially Ron Yeates who celebrated 30 years of volunteering at the CYCSA this season. Unfortunately, at the end of the season Ron will step down from his role as Coxswain on CYC1. However, Ron will continue to be an active member of crew on CYC1 in other capacities for as long as he likes.

Once again, our protest committee has only convened on a few occasions this season; however we thank Protest Chairman Simon Irving, as well as YSA Rules Officials Andrew Waterman and Lisa Bettcher, who have been generous with their time and expertise when called upon. We also give thanks to the general members who gave their time to sit on the hearings. Special thanks to David Tillett for his guidance throughout the year.

For the fifth year running, REX collaborated with the Royal SA Yacht Squadron in order to produce and facilitate the Racing Program for Season 2014-15. We once again conducted a survey at the end of last season to garner feedback and our program reflected 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.

As a result of our survey feedback, we made some changes to our Regatta formats this season which did not prove to be successful after previously having record number fleets in season 2013-14. We increased the number of races in our regattas (five in Premier’s Cup, five in Great Southern and three in Queen of the Gulf) and our fleet numbers were substantially down this season. We have taken this into consideration with our planning for the coming season and have reverted the format to three races each for Premier’s Cup and Great Southern, and one race for the Queen of the Gulf.

In addition to our staple regattas, the J24 National Championships were held at the CYCSA in January, and 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 and the Coaster Series once again proved their popularity with our members.

As a safety initiative this year, REX purchased ten Mini YachtBot Trackers. These allow us to track where the offshore fleet is in real-time. They have also been used for regular Saturday and Wednesday races, which has added some lively talk in the bar as who went what way.

After last year’s slight decrease in Racing Membership numbers, it is pleasing to report that this season the numbers have increased again. The Racing Executive and Racing Manager have been proactive in regards to our membership base, with plenty of

reminders issued to skippers to ensure that their crews have been financial during the season. We have also continued to interact with recent Marine Academy graduates by inviting them along on races days and we have managed to convert a small number of graduates to racing members this past season.

For this year we have worked out the average number of racing participants per series for the season: • Club Inshore Series: An average of 97 participants per race •

Coaster Series: An average of 94 participants per race

•

Offshore Series: An average of 43 participants per race

•

Twilight Series 1: An average of 177 participants per race; and

•

Twilight Series 2: An average of 141 participants per race.

The Twilight series continues to bring fresh faces to see our magnificent club, some of whom go on to become members.

The CYCSA was once again represented in the Sydney to Hobart Yacht Race thanks to Concubine (Jason Ward, Shevaun Bruland and their crew) who were 68th over the line and placed 18th in IRC 3 and 43rd overall in IRC. We were well represented at this year’s Festival of Sails, with Shining Sea, Concubine, Slipknot, Vertigo and Game On all heading to Geelong to participate.

Concubine placed 1st in both Division 2 IRC and AMS, Shining Sea placed 3rd in Division IRC and 4th in Division 2 AMS. Vertigo came 6th in Division 3 AMS and 5th in Division 3 IRC, Slipknot placed 6th in the Sydney 38 OD Category, and Game On placed 4th in the Sportsboats division.

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 join our Duty Crew volunteer pool. With the loss of Ron Yeates as Coxswain on CYC1, this position is required to be filled as soon as possible. We are aware that we need to find and train more people to ensure that we have a solid pool of volunteers for future years. As always, we welcome assistance from any interested members who might like to join our wonderful volunteer crews on race days.

Once again, this season we are grateful for the wonderful support of our valued sponsors. 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 happy to welcome new sponsors Southern Quarries and the Watershed Cafe and Function Centre who have come on board to sponsor the Short-handed Series this season. The Watershed Cafe and Function Centre will also join our group of Twilight Series Sponsors in the coming season.

We are also thankful to businesses such as Sportsmed SA and SALife Channel 7/Vislex, whose sponsorship of individual races and regattas during the season was a valuable addition to our bottom line.

Sponsorship continues to be a major challenge and we will be proactive in attempting to source more sponsorship relationships in the coming season to assist our bottom line. ...continued over page 25

Cruising Yacht Club of South Australia Annual Report for 2014/2015

Association Reports Income Statement 2014/2015

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 2015-16 Racing Association Committee will soon convene and our goals will be to continue to 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;

•

Provide a checklist on club assets for operation and safety;

•

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 REX is very happy to put announce that we have selected John Collett as the Racing Association’s Most Valued Volunteer for Season 2014-15.

John was selected due to his commitment as both a member and ‘leader’ of our CYC2 Duty Crew. John has been involved on CYC2 since approx 2007 and has taken a leadership role over his crew on the boat and maintains a very well-oiled crew, which is of great assistance to the Race Office. John is the driver of CYC2, maintains the boat and gives up a lot of his time to be down at the Club in either an official capacity, or to do jobs on the boat.

He is also a qualified Race Officer and has stepped in to help us out as RO from time to time when our main ROs are unavailable.

We are pleased to put John’s name forward for this honour.

Thanks also to our Racing Manager Jess Hargreaves, who will be taking maternity leave during the next season, and REX wish her all the best. The Racing Association can report that the past season, while not without its challenges, has progressed well.

The committee looks forward to finalising the 2015-16 programs as it prepares for another successful season of racing.

Rob Sellick, Chairman Racing Association

Income Racing Membership Fees $24,034.59 YA/YSA Membership Income $31,303.34 Casual Membership Fees $2,286.28 Racing Nominations $21,073.20 Casual Nominations $1,200.13 Regatta Income $54.55 Raffle Income $851.89 Fundraising $0.00 Racing Flags $218.16 Blue Book Sales $115.92 Presentation Night Income $7,854.68 Sail Storage Shed $8,445.47 J24 Championship $3,824.51 Other Income $0.00 Sponsorship Yalumba $2,000.00 Phil Hoffmann Travel $12,000.00 Port River Marine $2,727.30 Sportsmed SA $2,000.00 EverettBrook Custom Jewellery $500.00 SA Life/Vislex $500.00 Robert Oatley Vineyards $0.00 Quins Yacht Brokerage $500.00 Total $121,490.02 Expense Wages $53,776.25 Superannuation $4,913.89 Administration $2,013.00 Engraving/Signage expense $1,600.91 Racing/Regatta Expenses $594.58 Staff Training $0.00 Airhorn $84.09 Buoy Maintenance $29.86 Sponsors Expenses $1,380.56 Duty Crew Expenses $3,073.44 Hospitality $532.32 Blue Books expenses $0.00 Clothing $0.00 Internet /Computing $543.41 Phone expenses $677.21 Racing Flags $781.82 Motor Vehicle Expenses $0.00 Presentation Night expenses $8,532.57 Trophies/Prizes $1,905.26 YachtBot $1,308.89 YA/YSA Yearly Membership expense $31,303.34 Other Expenses $310.87 Repairs & Maintenance - CYC1 $2,546.50 Repairs & Maintenance - CYC2 $3,185.68 Fuel for boats $1,501.09 Total $120,595.54 2014/2015 Result

Cruising Yacht Club of South Australia Annual Report for 2014/2015

26

$894.48

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

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

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

Members

27

Cruising Yacht Club of South Australia Annual Report for 2014/2015

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 29 to 42.

1. Presents fairly the financial position of The Cruising Yacht Club of SA Incorporated and Controlled Entities as at 31 May 2015 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 2015:

- 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 they are 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 2015

Cruising Yacht Club of South Australia Annual Report for 2014/2015

28

Statement of Comprehensive Income for the Year Ended 31 May 2015

Note 2015

$

2014 $

Revenue 2 3,621,211 3,341,826 Other revenue 2 46,696 36,955 Employee benefits expense (1,296,061) (1,152,556) Depreciation 8 (446,136) (449,348) Other expenses 3 (1,015,617) (997,427) Finance costs (9,273) Cost of sales (447,411) (456,848) Insurance (109,607) (102,679) Repairs & maintenance expenses (231,655) (211,578) Net Profit / (Loss) 112,147 8,345

Other Comprehensive Income -

Total Comprehensive Income 112,147 8,345

The accompanying notes form part of these financial statements.

29

Cruising Yacht Club of South Australia Annual Report for 2014/15

Statement of Financial Position as at 31 May 2015

Note 2015 2014 $ $ Assests CURRENT ASSETS Cash and cash equivalents 4 370,089 1,352,027 Trade and other receivables 5 75,029 87,779 Inventories 6 52,919 74,192 Other assets 7 49,799 67,081 TOTAL CURRENT ASSETS 547,836 1,581,079 NON-CURRENT ASSETS Property, plant and equipment 8 18,913,172 17,660,121 TOTAL NON-CURRENT ASSETS 18,913,172 17,660,121 TOTAL ASSETS 19,461,008 19,241,200

LIABILITIES CURRENT LIABILITIES Trade and other payables 9 560,554 751,414 Borrowings - Short-term provisions 10 187,709 209,319 TOTAL CURRENT LIABILITIES 748,263 960,733 NON-CURRENT LIABILITIES Trade and other payables 9 5,142,728 5,286,737 Borrowings 11 462,500 Long-term provisions 10 15,381 17,891 TOTAL NON-CURRENT LIABILITIES 5,620,609 5,304,628 TOTAL LIABILITIES 6,368,872 6,265,361 NET ASSETS 13,092,136 12,975,839

EQUITY Issued capital 12 6,137,337 6,133,187 Reserves 1,605,504 1,605,504 Retained earnings 5,349,295 5,237,148 TOTAL EQUITY 13,092,136 12,975,839

The accompanying notes form part of these financial statements.

Cruising Yacht Club of South Australia Annual Report for 2014/15

30

Statement of Changes in Equity for the Year Ending 31 May 2015

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

Balance at 1 June 2013 6,108,787 5,410,456 1,305,150 - 12,824,393 Capital Redemption 24,000 - 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

Balance at 1 June 2014 6,133,187 5,237,148 1,343,350 262,154 12,975,839 Contributed (Reduction) in Capital 4,150 - - - 4,150 Operating Result for the Year - 112,147 - - 112,147 Transfer Between Reserves - (2,756) - 2,756 Balance at 31 May 2015 6,137,337 5,346,539 1,343,350 264,910 13,092,136

The accompanying notes form part of these financial statements.

Statement of Cash Flows for the Year Ending 31 May 2015

Note 2015 $

2014 $

CASH FLOWS FROM OPERATING ACTIVITIES Receipt from customers 3,525,659 3,229,326 Payments to suppliers and employees (2,595,431) (2,724,685) Interest received 20,029 44,854 Interest paid (9,273) Net cash generated from operating activities 940,984 549,495

CASH FLOWS FROM INVESTING ACTIVITIES Payment for property, plant and equipment (2,389,572) (435,035) Net cash used in investing activities (2,389,572) (435,035)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings 462,500 Proceeds / (Redemption) from issue of units in Unit Trust 4,150 62,600 Net cash used in financing activities 466,650 62,600

Net increase(decrease) in cash held (981,938) 177,060 Cash and cash equivalents at beginning of financial year 1,352,027 1,174,967 Cash and cash equivalents at end of financial year 4 370,089 1,352,027

The accompanying notes form part of these financial statements.

31

Cruising Yacht Club of South Australia Annual Report for 2014/15

Notes to the Financial Statements for the Year Ending 31 May 2015

Note 1: Summary of Significant Accounting Policies

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.

The financial statements were authorised for issue on 23 July 2015 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 %

Inner Breakwater 1%

The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period.

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. (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.

Subsequent costs are included in the asset’s carrying amount or

Cruising Yacht Club of South Australia Annual Report for 2014/15

32

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.

Notes to the Financial Statements for the Year Ending 31 May 2015

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

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, 33

Cruising Yacht Club of South Australia Annual Report for 2014/15

Notes to the Financial Statements for the Year Ending 31 May 2015

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).

Cruising Yacht Club of South Australia Annual Report for 2014/15

34

(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. Comparative figures in Note 2 and Note 3 have been amended to provide more detailed breakdown of information presented. There has been no change in the overall financial position or performance of the entity compared to previous reported periods. (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.

Notes to the Financial Statements for the Year Ending 31 May 2015

2015 $

Note 2: Revenue and Other Income

2014 $

Revenue Sale of goods – Food & Beverage, Retail 1,038,586 954,579 Sundry function income 44,895 82,412 Commissions 104,429 150,636 Corporate fees 1,179,020 969,778 Membership subscriptions 513,470 538,735 Income – Marine Academy 58,248 76,105 Ramp income 133,041 113,569 Licence fees – Marina West 148,131 152,253 Interest 20,029 44,854 Slipway 89,586 88,228 Sponsorship 42,933 Equipment Hire 13,696 12,847 Lease income 51,836 14,624 Marketing 34,135 35,254 Racing Association income 121,489 76,070 Social Activities income 18,824 16,094 Cruising Association income 4,000 2,144 Fishing Association income 4,863 13,644

3,621,211 3,341,826 Other Income Other income 46,696 36,955

46,696 36,955 In previous financial years a higher proportion of fees paid under the Racing Membership category were retained by the Club under Membership Subscriptions. In 2014/15 changes were made to apportion the cost of the Repairs and Maintenance of duty boats CYC1 and CYC2 and also include the Subscription Fees that are paid to Yachting Australia within the Racing Association’s financials. As a result of the movement of these expenses from General Club expenditure a higher proportion of fees that were previously recorded in the Club’s Membership Subscription have been allocated to the Racing Association to offset these expenses.

2015 $

Note 3: Other Expenses

2014 $

Rates & Taxes 265,517 122,297 Advertising – General 31,583 34,776 Bank Charges 17,897 14,238 Computer/IT 47,920 43,678 Club publications 23,453 26,390 Racing Association expenses 120,597 64,084 Social Activities expenses 18,569 13,051 Cruising Association expenses 3,900 172 Fishing Association expenses 3,355 6,888 Utilities – Power & Water 105,580 111,811 Other expenses 374,246 560,042

1,015,617 997,427

35

Cruising Yacht Club of South Australia Annual Report for 2014/15

Notes to the Financial Statements for the Year Ending 31 May 2015

2015 $

Note 4: Cash and Cash Equivalents

Cash on hand Cash at bank and in hand Savings account

2014 $

20 20 49,217 21,175 320,852 1,330,832 370,089 1,352,027

The effective interest rate on the savings account was 1.7% (2014: 2.4%) 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

370,089 1,352,027 - 370,089 1,352,027

2015 $

Note 5: Trade and Other Receivables

Current Trade receivables Provision for impairment

2014 $

96,029 108,779 (21,000) (21,000) 75,029 87,779

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 21,000 Charge for the year - Closing provision for impairment 21,000 21,000

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

52,919 74,192 52,919 74,192

Note 7: Other Assets Prepayments 49,799 67,081

49,799 67,081 Cruising Yacht Club of South Australia Annual Report for 2014/15

36

Notes to the Financial Statements for the Year Ending 31 May 2015

2015 2014

$ $

Note 8: Property, Plant and Equipment

Land – At Deemed Cost

Leased Asset – At Deemed Cost Accumulated Depreciation

Buildings – At Deemed Cost Accumulated Depreciation

Plant and Equipment – At Deemed Cost Accumulated Depreciation

Office Equipment – At Deemed Cost Accumulated Depreciation

Marina and Improvements (Marina West) – At Deemed Cost Accumulated Depreciation

Marina and Improvements (Marina East) – At Deemed Cost Accumulated Depreciation

Inner Breakwater – At Deemed Cost Accumulated Depreciation

Works-in-Progress (WIP)

Total property, plant and equipment

6,800,000

6,800,000

32,800 (32,800) -

32,800 (32,800) -

2,078,855 2,075,030 (436,405) (373,614) 1,642,450 1,701,416 993,061 945,607 (677,793) (604,820) 315,268 340,787 109,823 105,128 (92,935) (87,304) 16,888 18,621 8,474,840 8,474,840 (1,235,158) (1,044,568) 7,239,682 7,430,272 1,936,477 1,936,477 (1,144,425) (1,040,865) 792,052 895,612 2,100,755 (10,592) 2,090,163 16,669

473,413

18,913,172 17,660,121

37

Cruising Yacht Club of South Australia Annual Report for 214/15

Notes to the Financial Statements for the Year Ending 31 May 2015

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 2014

Land Assets Buildings Plant and Office

Assets Equipment Equipment $ $ $ $ 6,800,000

1,701,416

340,787

18,621

Additions

- 3,825 47,453 4,695

Disposals

- - - -

Depreciation expense

-

(62,791)

(72,972)

(5,631)

6,800,000

(62,791)

315,268

16,888

Carrying amount at 31 May 2015

Balance at 1 June 2014

Marina and Marina and Inner WIP Total Improvements Improvements Breakwater Marina West Marina East $ $ $ $ $ 7,430,272

895,612

-

Additions

-

- 2.100,755

Disposals

-

-

473,413

17,660,121

16,669 2,172,600

- (473,413) (473,413)

Depreciation expense

(190,590)

(103,560)

(10,592)

-

(446,136)

Carrying amount at 31 May 2015

7,239,682

792,052

2,090,163

16,669

18,913,172

Cruising Yacht Club of South Australia Annual Report for 2014/15

38

Notes to the Financial Statements for the Year Ending 31 May 2015

2015 2014 $ $

Note 9: Trade and Other Payables

Current Trade payables 103,775 328,413 Marina West revenue in advance 148,131 152,253 Other payables 308,648 270,748

560,554 751,414 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 5,142,728 5,286,737

5,142,728 5,286,737

Note 10: Provisions CURRENT Provision for annual leave 121,508 140,227 Provision for long service leave 66,201 69,092

187,709 209,319 Non-Current Provision for long service leave 15,381 17,891

15,381 17,891 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.

2015 $

Note 11: Borrowings

Westpac Loan – Marina West Inner Breakwater

462,500 462,500 -

2015 $

Note 12: Issued Capital

Settled Capital 122,184 (2014: 122,101) fully paid issued units at $50 each 27,545 (2014: 27,545) fully paid issued units at $1 each

2014 $

2014 $

592 592 6,109,200 6,105,050 27,545 27,545 6,137,337 6,133,187

39

Cruising Yacht Club of South Australia Annual Report for 2014/15

Notes to the Financial Statements for the Year Ending 31 May 2015

Note 13: Events after the Reporting Period There were no events subsequent to 31 May 2015 that need to be disclosed in the financial statements.

Note 14: Reserves 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.

2015 2014 $ $

Note 15: Capital and Leasing Commitments

Operating Lease Commitments Payable – minimum lease payments: No later than 12 months 6,820 6,733 Between 1 – 5 years 26,640 21,525

33,460 28,258 Capital Expenditure Commitments No later than 12 months - 1,650,985 Between 1 – 5 Years -

- 1,650,985

Note 16: 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 2015 2014 $ $ Financial Assests Cash and cash equivalents 4 370,089 1,352,027 Accounts receivable and other debtors 5 75,029 87,779

445,118 1,439,806

Financial liabilities Financial liabilities at amortised cost: - accounts payable and other payables 9 567,823 751,414

567,823 751,414

The economic entity has a bank overdraft and commercial bill facility amounting to $100,000 (2014: $50,000).

This may be terminated at any time at the option of the bank. At 31 May 2015, $Nil of this facility was used (2014: $Nil). Interest rates are variable.

Cruising Yacht Club of South Australia Annual Report for 2014/15

40

Notes to the Financial Statements for the Year Ending 31 May 2015

Note 17: 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 2015 $Nil was drawn down on the bill facility (2014: $Nil).

A bank overdraft facility of $100,000 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 2015 (2014: $Nil).

The Club has an undrawn bank overdraft facility as at 31 May 2015 of $100,000 held with the Westpac Banking Corporation.

Note 18: 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.

41

Cruising Yacht Club of South Australia Annual Report for 2014/15

Notes to the Financial Statements for the Year Ending 31 May 2015

Note 19: Key Management Personnel

Salary Superannuation Non-Cash Benefits Contributions

$ $ $ 2015 2014

154,635 14,449 1,976 148,389 13,581 2,204

2015 2014 $

Note 20: 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 3,520 3,076

3,520 3,076

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 2014/15

42

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

43

Cruising Yacht Club of South Australia Annual Report for 2014/15