2016/17 ANNUAL REPORT
CAMPBELLTOWN CATHOLIC CLUB LTD
Annual Report 2017
BOARD OF DIRECTORS Left to right: Peter Crittenden, Leo Delissen, Alan Scott, David Olsson, Mary Ellen Bland, Michael Lavorato (CEO), Andrew Stapleton, Steve Carter, Peter Meadows, David McDonald
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Campbelltown Catholic Club
CONTENTS 04
PRESIDENTS WELCOME
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CEO’S OVERVIEW
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OUR HIGHLIGHTS
10
OUR PEOPLE
14
OUR COMMUNITY
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OUR SCHOOLS
18
OUR INVESTMENTS
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NOTICE OF AGM
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ANNUAL REPORT
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Annual Report 2017
PRESIDENTS WELCOME DAVID OLSSON
It is my pleasure to present to the members of the Campbelltown Catholic Club Limited the Club’s Annual Report for the financial year ending 30th June 2017. This report is to be considered at the Annual General Meeting to be held on Wednesday 1st November 2017 at 7.00pm on the Club’s premises. The report, financial statements and notes pertaining thereto are very comprehensive and give an accurate account of the Club’s position. The profit of $4.783 million is a slight decrease on last year’s number, but still a very good result and reflects a continually pleasing return on our investment in upgraded Club facilities. Over the past year our debt has been significantly reduced in preparation for further investment which I will touch on later. Our cash surpluses will still primarily be used to pay down debt but we are again targeting new works which will cause debt levels to fluctuate over the next year or two. Our overall debt profile is, however, well within our capacity to manage.
“In 2016/17 we were once more able to provide a substantial level of donations to the community.” A cash figure of $1.366 million was donated to schools, various charities and sporting clubs, a community assistance level of which all Club members should be very proud. As is usual our schools were the main recipients of these donations along with significant grants to many charities and community groups. It should be remembered this figure doesn’t account for the many sponsorships we undertake nor for the non-cash support we provide to many different groups and individuals in our community. We are and will remain a community based club striving to be the best corporate citizen we can be. Some increases in donation levels are intended in 2017/18. In terms of operational costs which impact on the Club’s bottom line, members should be aware of significant price increases in the utilities area as well as huge increases in the cost of meat. Electricity and gas price increases are affecting everyone and
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Campbelltown Catholic Club
the Club is no exception, projecting consequent increases of many thousands of dollars in our operating costs. Hopefully governments will soon take action to ease this burden on all users of these utilities. Additionally over the past year meat prices have risen to unprecedented levels severely impacting our capacity to maintain a reasonable price for meals. We are endeavouring to restrict the impact of these price rises on members and guests but, as is the case for all businesses in the food area, some price rises are inevitable. In the past twelve months we have opened two new dining experiences in Embers and the world-class Kyubi. We have also been planning for an extension to our hotel, comprising additional rooms, more function space and another terrace. Contracts to commence this work will be signed in early August with work to start immediately thereafter. This project is scheduled to be completed in mid-2018. We are also exploring options for some further upgrades within the main Club with the focus on the indoor gaming area and a refresh of the Samba Café. Hopefully we’ll have something more concrete on this in the new year. As has become part of our Corporate Governance regimen I have again conducted reciprocal formal Board performance reviews with the Club Directors. As I have previously said this process is designed to help the Board evaluate individual as well as collective performances over the review period. As ever the scope of the process was again slightly expanded this year and will be regularly reviewed so as to maintain currency with best practice corporate governance standards. Annual performance reviews have also been carried out with the General Manager and the Executive team. After the untimely death of Board member John Towers last year, Andrew Stapleton was elected to the Board at the AGM in November 2016. Andrew has had a long career in banking and his expertise in this area is already proving to be invaluable. Welcome Andrew.
We were saddened by the recent death of life member, Bruce McDonald, a founder of our Club. In fact, the club’s first board meeting was held in his Lithgow Street living room in the 1960s. He was also one of Campbelltown’s most influential civic figures, serving as deputy town clerk in the 1960s, town clerk in the 1970s, and head of the Macarthur Development Board. Our thoughts go to Lenore and his family. On a lighter note I would like to take this opportunity to thank my fellow Directors, our CEO Michael Lavorato, the Management and Staff of our Club for their continuing professionalism and enthusiasm. It has again been a good year for our Club and the continuing pursuit of excellence by our staff speaks volumes for their attitude and dedication to their respective roles.
“I continue to be reminded that our Club is seen as a leader and an innovator by the industry and our standing is testament to the ongoing dedication of our staff and their relentless quest for excellence in the service levels provided to members.” A reminder to any Catholic member who wishes to nominate for a position on the Board of Directors for our Club, nominations must be received by the Club’s General Manager at least fourteen (14) days prior to the Annual General Meeting, ie by 8pm on Wednesday 18th October 2017. Forms can be obtained from the Club’s front desk together with an information pack detailing legal obligations and responsibilities. As per our Constitution we conduct triennial elections with three positions on the Board up for election each year. A big thankyou to all our members for the loyalty you show to the King of Clubs. Your support will ensure we will continue to provide members with venues and services of which you can all be proud.
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Annual Report 2017
THE BEDROCK, AND THE DOING AN OVERVIEW BY CHIEF EXECUTIVE OFFICER MICHAEL LAVORATO.
“Numbers and statistics are the bedrock of an annual report…but, it’s the heart of this great Club that shines through.” There I was, brush in hand, painting a 60-year-old window sill. Our management team was shoulderto-shoulder with me, sanding walls, scraping away muck, and out in the garden getting dirt under their fingernails. Not exactly another day in the office. But just another day for Campbelltown Catholic Club, which was supporting “Do Something Day” 2017 by helping with repairs around the homes operated by Macarthur Accommodation System (MAS). We get a glimpse of the self-worth and quality of life this program creates, because one of our club team members, Lizzie, lives in one of these homes. To me, it summed up a lot of the culture of this Club. Yes, numbers and statistics are the bedrock of an annual report – and we’ve got them in this report: More than $1.3 million in community donations, more than 35,000 hotel room nights, more than 607,000 meals served, more than 20,700 show ticket sold, the list goes on. But, it’s the heart of this great Club that shines through. It is what we do with the numbers and statistics that provokes the imagination, enlivens the senses, lifts our spirits and reminds us of the communityminded focus of our club founders in the 1960s. So, I welcome you to this annual report which sets out the financials and fundamentals that aid us to make our mark.
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Campbelltown Catholic Club
LEADERSHIP TEAM Back row left to right David Turner – Manager Campbelltown Golf Club, Brett Barlow – General Manager Rydges Campbelltown, Lance Howes – Information Technology Manager, Graeme Derrig – Chief Marketing Officer, Tony Holmes – Operations Manager Facilities, Security and Compliance. Centre row left to right Michael Lavorato – Chief Executive Officer, Paul Rifkin – Executive Chef, Craig Epton – Chief Operating Officer, Roger Cubitt – Chief Financial Officer, Stephanie Humphries – Operations Manager People and Events. Front row left to right Jill Teeling – General Manager People and Culture, Kristen Green – Executive General Manager Aquafit, Peter Sheppard – Director Culinary Development. Absent from photo Maryann Cook - Gaming Manager
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Annual Report 2017
OUR HIGHLIGHTS KEY FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2017
The Club’s results were impacted by concern around the housing market, increased mortgage costs, increased utility costs and the lowest wage growth in 20 years. When put together, this meant that members have understandably tightened their belts and become more discerning with their discretionary spend. In this environment - it is pleasing to report that Club revenues grew. Profit however declined slightly.
During 2016-17, Campbelltown Catholic Club contributed $1,366, 782 to the local community through grants funding, sponsorships, local projects, charity support and initiatives. That is, of course, way above and beyond our NSW Clubgrants liability of $887,000. We also provided an additional $104,000 in in-kind support.
HERE’S SOME OF THE BIG STATISTICS IN A NUTSHELL: HIGHLIGHTS
$
GROWTH
Total Revenue
$65,810,042
6%
$4,782,878
(-11.2%)
$14,634,796
13.1%
$1,366,782
1.4%
Total Assets
$128,345,290
2.1%
Net Assets
$108,019,441
4.6%
Profit Net Cashflow Donations
TAXES PAID Gaming and revenue tax
$ $13,340,849
Council, water rates & Land tax
$460,613
Payroll taxes
$976,181
TOTAL
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$14,777,643
Campbelltown Catholic Club
total cash donations to date
53,036
million in community donations
$27 m
members
new restaurants
4,307
35,080
607,224
20,761
424
65.9%
90%
1.5
$1.366
Aquafit members
Employees
hotel room nights
FEMALE EMPLOYEES
meals served
EMPLOYEES LIVING IN MACARTHUR
2
show tickets sold
million club visitations
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Annual Report 2017
OUR PEOPLE At Campbelltown Catholic Club, people are our greatest asset and throughout 2016-17 we continued to inspire and develop our team members to be the best they can be and to make the most of opportunities in a changing workplace. Here’s a few examples of how we are setting new benchmarks:
WHITE RIBBON ACCREDITATION Our staff are now taking the pledge – “I will stand up, speak out and act to prevent men’s violence against women. This is my Oath.” In an effort to tackle the statistics surrounding domestic violence against women, the Club has set out to become a white-ribbon accredited workplace – a rigorous two-year process. This has involved a dedicated committee, a range of programs and training sessions, and a heavily-involved staff. We have actually seen it here in the past with a number of staff members presenting as victims of domestic violence. It’s very personal from our point of view – and it’s not just physical. Victims can be financially deprived or deprived of seeing their family and friends. Our goal is to change attitudes and behaviours so women and children can be free from violence and abuse. We aim to do this through education, increasing awareness, developing prevention programs, forming partnerships, creative campaigns and fundraising events.
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Campbelltown Catholic Club
LEADERSHIP DEVELOPMENT -
VISION
VALUES
EMPOWER
Campbelltown Catholic Club has continued to engage in a comprehensive leadership development program for all 12 senior managers. This best of breed program integrates key levers of change which work towards building a constructive culture to enhance excellence in customer service, quality catering, efficient and effective operations, etc. Through workshops, 360 degree feedback and individual coaching, the program links culture and leadership in a way that allows individual managers and leaders to understand how they are perpetuating the current state through their thinking and behaviour. This level of insight empowers and motivates individual managers to make changes that directly increase performance.
ENCOURAGE
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Annual Report 2017
BOARD OF DIRECTORS
As part of our Corporate Governance regimen, formal Board performance reviews are completed with each Club Director. This process is designed to help the Board evaluate individual as well as collective performances over the review period. The scope of the process was expanded this year to include 360 degree reviews. Regular coaching and role reviews have also been carried out with the General Manager and the Executive team. In addition to the review process the Board undertake continual learning through the Club Directors Institute (CDI) and other mechanisms to ensure best practice corporate governance standards are maintained.
MAKING OUR BEST PERFORMERS EVEN
BETTER
“People in Campbelltown often go in to the city for special occasions but we need to show them they don’t need to leave, we have what they want here” Our team of chefs has proved this past year that club food is more than just chicken schnitzels, with our two important new restaurants – Kyubi Modern Asian Dining and Embers Charcoal Kitchen – turning Campbelltown Catholic Club into a new food capital of Macarthur. But, to raise the bar even higher, the club has hired award-winning chef Peter Sheppard as the director of Culinary Development, to help guide our chefs to even greater heights. His former restaurant, Caveau in Wollongong, has received 12 coveted chef’s hat awards (Sydney Morning Herald – Good Food Guide) for outstanding food and service. Yet, as the same time as the Catholic Club wins accolades and gets nominated for top dining awards, we still offer the best chicken schnitzels for members who love to keep it simple. It’s all about the range on offer.
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Better still, it’s not just about improving our staff, but giving our members new skills, too. Peter has also been running workshops to educate all ages with his cooking tips.
Campbelltown Catholic Club
RECOGNITION & REWARD We are the only Club in Australia with an online staff reward and recognition program with Redii (A division of Red Balloon). Our Kudos program allows employees to earn and accrue points for a choice of over 2500 experiences available throughout Australia, rewarding staff commitment to the Club values. Points can be earned peer to peer as well as through management recognition of exemplary team member behaviour.
INNOVATION
COMPASSION
COMMUNITY
RESPECT
TEAM
PASSION
INTEGRITY
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Annual Report 2017
OUR COMMUNITY “UNITED WE STAND, DIVIDED WE FALL” The importance of community is a key driver of the Club’s mission. We have again backed a wide range of interactions and shared experiences to enrich Macarthur and actively contributed to worthy charities. Just a few highlights include: DO SOMETHING DAY
LEARNING LINKS READING FOR LIFE
Staff and management rolled up their sleeves to paint, garden and do repairs around three homes in Campbelltown operated by Macarthur Accommodation System (MAS). These homes enable residents with a disability to live as independently as possible in their own home or group home while providing domestic assistance, financial management, personal care and health and lifestyle care.
We aided Learning Links by providing funding and reading buddy volunteers to this worthwhile cause.
Do Something Day, founded in 2016, is a celebration of volunteering and random acts of kindness, backed by ClubsNSW and NewsLocal newspapers.
They worked one-on-one with a child using a range of educational game-based activities to improve reading accuracy and confidence.
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Staff members Nicole Reilly, Louise Molland, Jessica Ciccone, Lachlan Carter, Megan Dengate, Kayla Crawford, Ally Carter, Leanna Field and Jessica Satara generously volunteered their time to the 15-week program.
Campbelltown Catholic Club
LIVING STRONGER
JUNIOR SPORTS HOT SHOT PROGRAM
Aquafit celebrated the 10 Year Anniversary of its Over 55’s Program “Living Stronger”, which has benefitted so many of our senior members improving their health, wellbeing and social connections. Almost 100 attendees joined myself, with Aquafit staff and General Manager Kristen Green, in the Phillip Room for a party to mark the event, with medals given to the 31 “originals” from 2007.
A popular new addition that encourages young sportspeople to share their story online for the chance to win $500 cash every month. Stories can be about participation, overcoming personal adversity or an unexpected win against all the odds. One of the monthly winners this year included Emily Stellino of Campbelltown who had been bullied – until she hit the taekwondo mat – and at age 17 was part of the Australian team competing at the World Championships in Korea on June 22-30, competing alongside Olympians. Her own goal is to represent Australia at the 2020 Tokyo Games.
CAROLS IN THE GARDEN A huge crowd of all ages flocked to Macarthur’s oldest and largest Christmas carols spectacular, proudly supported by Campbelltown Catholic Club and our own C4 Choir. There was kids entertainment and top quality food stalls for adults.
MORNING MELODIES Held in The Cube on the first Tuesday of every second month for our older and less mobile patrons. Many groups attend from local retirement villages, over 55 living communities as well as community groups such as the Stroke Club and Legacy. The events are extremely popular and sell out within days and often end with audience participating in an impromptu singalong as they relive the music of their youth, Guest artists have included Danielle Everett, Nathan Foley and Roland Storm.
24 HOUR FIGHT AGAINST CANCER In 2016, Campbelltown Catholic Club’s Aquafit Health Fitness Wellbeing continued to support this community walkathon that helps cancer patients and gives local doctors the best surgical equipment available.
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Annual Report 2017
OUR SCHOOLS
o
st
“This is what it is supposed to be about, the Club was founded in 1964 to raise money for local schools.” Campbelltown Catholic Club founding president Bill Meehan.
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Campbelltown Catholic Club
CATHOLIC SCHOOLS Cambelltown Catholic Club has poured millions of dollars into local Catholic education, and this past year our beneficiaries were: • • • • • • • • • • • • • • • • •
St Anthony’s Primary School, Picton Holy Family Primary School, Ingleburn Mary Immaculate Primary School, Eagle Vale St John the Evangelist Primary School, Campbelltown St Justin’s Primary School, Oran Park St Paul’s Primary School, Camden St Clare’s Primary School, Narellan Vale St Thomas More Primary School, Ruse Our Lady Help of Christians Primary School, Rosemeadow St Gregory’s College, Campbelltown John Therry Catholic High School, Rosemeadow St Patrick’s College, Campbelltown Mt Carmel College, Varroville Mater Dei, Camden Magdalene High School, Narellan St Benedicts College, Oran Park St Francis Catholic College, Edmondson Park
LET’S MOVE FOR A BETTER WORLD Aquafit finished as the top facility in Australia, as part of a worldwide fitness challenge designed to get people moving. That success has also resulted in the donation of $15,000 in gym equipment to St Patrick’s College, Campbelltown.
Led by principal Simon Abernethy, St Francis College has established co-educational classes K-7 in 2017, and is expecting strong demand as the surrounding housing estates boom. The state-of-the-art college will be built over several stages and reach full capacity by 2022 with an expected student population of 1700. St Francis is the patron saint of ecology and, as such, the College is designed to be ecologically sustainable.
MAX POTENTIAL Young people are our future and we again tapped that potential – to the max. Campbelltown Catholic Club has again supported Max Potential, a youth leadership development program that connects local community leaders with aspiring young leaders. Sammie Gimbert, in Year 11 at Airds High School, gave a recent presentation with a cake she baked to symbolise her progress. “My personal goal is to make my friends feel more valued in my life, and my community goal is to provide some help for the homeless,” she said. “The cake explains my journey through Max Potential – the dark colours at the bottom represent how I felt at the beginning, and the bright colours show how I’m feeling right now.” Project manager Dee Raquel Joma said this year’s program has 24 young people and 24 community coaches learning leadership principles.
The ‘Let’s Move For a Better World’ challenge – a fun global initiative to address global obesity – ran from 13-31 March 2017. The fitness centre got everyone involved for the 19-day period, from management and reception to gym staff. About 60 students selected from Years 9, 10 and 11 at St Patrick’s were involved, making a total of seven visits to Aquafit in special time slots, with parents and teachers also coming along.
OUR NEW SCHOOL The latest member of the Club’s family of schools is St Francis Catholic College, built to serve the rapidlydeveloping community of Edmondson Park. It is an exciting new partnership between the Diocese of Wollongong and Edmund Rice Education Australia and will be connected to the parish of Mary, Mother of Church, Macquarie Fields.
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Annual Report 2017
OUR INVESTMENTS FOOD REVOLUTION Our Kyubi Modern Asian Dining officially cemented itself as one of the best newcomers to Sydney restaurant scene after being named one of 10 finalists in the Best New Restaurant category in the 2017 Savour Restaurant Catering Hostplus Awards For Excellence. Most of the other finalists are from inner Sydney city or North Shore, creating a great feather in the cap of Macarthur. It’s pretty exciting and comes as a great vindication of our ongoing food revolution.
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Campbelltown Catholic Club
RYDGES Work has started on a new-look for our hotel with brand new conference space, an outdoor terrace area, and an extra 38 rooms. The $16m project comes in the venue’s 10th year of operation, and also includes new styling and modern furnishings for its existing 161 rooms, and a brand new reception area. The hotel will also cater strongly as a wedding location. I’m calling it 10x10x10 – we've signed a 10-year contract renewal with Rydges, and we celebrate the 10 year anniversary of the hotel, with a new construction/refurbishment that will take us into the next decade.
CLUB EXPANSION We are also working with our architects on design concepts for the next phase of our Club renovations. This scope includes some exciting new concepts for our foyer area including the demolition of the grand staircase, the complete refurbishment of Samba café and significant changes to our internal gaming areas, main bar and consolidation of the TAB area.
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Annual Report 2017
NOTICE OF ANNUAL GENERAL MEETING CAMPBELLTOWN CATHOLIC CLUB LIMITED ACN 000 504 110
Notice is hereby given that the Fifty Second Annual General Meeting of the Campbelltown Catholic Club Limited ACN 000 504 110 will be held at the Club’s premises, 20-22 Camden Road, Campbelltown on Wednesday 1 November 2017 at 7.00pm. Notice is also given that nominations for the office of Director must be delivered to the Chief Executive Officer by no later than 8.00pm on 18 October 2017. A detailed notice about the nomination process is on the Club’s notice board and on the Club’s website.
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Campbelltown Catholic Club
BUSINESS OF ANNUAL GENERAL MEETING 1. MINUTES To confirm the Minutes of the Fifty First Annual General Meeting held on 2 November 2016.
2. ANNUAL REPORTS To receive and consider: • the report of the Board of Directors for the year ended 30th June 2017; • the Financial Report, including the Income Statement, Balance Sheet, Statement of Cash Flows and Statement of Changes in Equity for the year ended 30th June 2017; • the Auditor’s Report on the Financial Report for the year ended 30th June 2017.
NOTE TO MEMBERS: In order to provide an informed and properly researched response, members are requested to lodge questions in respect of the financial statements to the Chief Executive Officer (preferably in writing) 7 days prior to the Annual General Meeting.
3. ELECTION OF DIRECTORS To elect three (3) Directors to hold office for a period of three (3) years.
NOTE TO MEMBERS: Social (Non-Catholic) members as well as General (Catholic) members are entitled to vote in the election for directors. However, Social members have no other voting rights and are not entitled to stand for election to the Board of the Club.
The Club’s Constitution provides for three year terms of office for directors with one third of the directors retiring each year and an election being held to fill the vacancies thereby created (this is known as the triennial rule). The three directors positions referred to at item 3 of the agenda are those that fall due to be filled in the normal course under the triennial rule.
4. ORDINARY RESOLUTIONS To consider, and if thought fit, pass the following six resolutions each of which is proposed as an Ordinary Resolution:
FIRST ORDINARY RESOLUTION That pursuant to the Registered Clubs Act: a. The Members hereby approve expenditure by the Club not exceeding $175,000 until the Annual General Meeting in 2018 for the following expenses subject to approval by the Board of Directors: i. Expenses involved in sponsorship of Affiliated Clubs. ii. Annual Community Leaders Dinner Expenses. iii. Presentations to Members or other persons acknowledging services deemed by the Directors as being of benefit to the Club. iv. Sponsorship of Sporting Events and Sport Persons deemed by the Directors to be of benefit to the Club and/or the Community. v. Providing complimentary meals and beverages to Life Members. vi. Reasonable expenses incurred by Directors in travelling by either private or public transport, to and from Directors or other duly constituted Committee Meetings, either within the Club or elsewhere - as approved by the Board, on production
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of documentary evidence of such expenditure. vii. The cost of meal and beverage for each Director at a reasonable time before or after a Board or Committee Meeting, on the day of that Meeting. viii. Reasonable expenses, incurred by Directors, either within the Club or elsewhere, in relation to such other duties including entertainment of special guests of the Club and other promotional activities approved by the Board, on production of documentary evidence of such expenditure. b. The Members acknowledge that the benefits in Paragraph (a) above are not available to Members generally, but only for those who are Directors of the Club, Life Members of the Club and those Members directly involved in the above activities.
SECOND ORDINARY RESOLUTION That pursuant to the Registered Clubs Act. a. The Members hereby approve expenditure by the Club not exceeding $50,000 until the Annual General Meeting in 2018 for the professional development and education of Directors over the following twelve months, including:i. The reasonable cost of Directors attending the Registered Clubs Association Annual General Meeting. ii. The reasonable cost of Directors attending Meetings of other Associations of which the Club is a Member. iii. The reasonable cost of Directors attending Seminars, Lectures, Trade Displays, Organised Study Tours, Factfinding Tours and other similar events, as may be determined by the Board from time to time.
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iv. The reasonable cost of Directors attending mandatory training under the Registered Clubs Act and Regulations. v. The reasonable cost of Directors attending other Clubs for the purpose of observing their facilities and methods of operation. vi. Attendance at functions, with spouses where appropriate and required, to represent the Club. b. The Members acknowledge that the benefits in Paragraph (a) above are not available to Members generally, but only for those who are Directors of the Club.
NOTES TO MEMBERS ON FIRST AND SECOND ORDINARY RESOLUTION: • The First Ordinary Resolution is to have members approve expenditure not exceeding $175,000 for expenses incurred by the Club in sponsorships as set out in that resolution, reasonable expenses incurred by the Directors in the performance of their duties and expenses incurred by the Club in providing meals and beverages to Life Members when they attend the Club. This amount is the same as the amount approved by members at the Annual General Meeting in 2016. • The Second Ordinary Resolution is to have members approve expenditure not exceeding $50,000 for expenses incurred by the Club for Directors to attend conferences, seminars, lectures, trade displays and other similar events and to visit clubs to enable the Directors to be kept abreast of current trends and developments which may have a significant bearing on the nature and way in which the Club conducts its business. The sum approved by the Second Ordinary Resolution is also for the costs of mandatory training for Directors under the Registered Clubs Act and Regulations. This amount is the same as the amount approved by members at the Annual General Meeting in 2016.
Campbelltown Catholic Club
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• To be passed, each Ordinary Resolution requires votes from a simple majority of members who, being eligible to do so, are present at the meeting and vote on the resolution. • The Registered Clubs Act provides that: - members who are employees of the Club are not entitled to vote; and - proxy voting is prohibited.
THIRD ORDINARY RESOLUTION That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of an honorarium to the director who is President of the Club in the sum of $14,000 (inclusive of the Superannuation Guarantee Levy) in respect of the services performed by the President of the Club between the date of this meeting and the Annual General Meeting in 2018.
FOURTH ORDINARY RESOLUTION That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of an honorarium to the director of the Club who as determined by the Board has the School Liaison portfolio in the sum of $9,500 (inclusive of the Superannuation Guarantee Levy) in respect of the services performed by the director in that portfolio between the date of this meeting and the Annual General Meeting in 2018.
FIFTH ORDINARY RESOLUTION That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of an honorarium to the director of the Club who as determined by the Board has the portfolio of Vice President in the sum of $9,500 (inclusive of the Superannuation Guarantee Levy) in respect of the services performed by that director in that portfolio between the date of this meeting and the Annual General Meeting in 2018.
SIXTH ORDINARY RESOLUTION That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of honorariums to the directors of the Club (other than those in in the Third, Fourth and Sixth Ordinary Resolutions) in the sum of $7,000 (inclusive of the Superannuation Guarantee Levy) for each director, in respect of the services performed by each director between the date of this meeting and the Annual General Meeting in 2018.
NOTES TO MEMBERS ON THE THIRD, FOURTH, FIFTH AND SIXTH ORDINARY RESOLUTIONS: • The Third, Fourth, Fifth and Sixth Ordinary Resolutions are to approve honorariums for the Board according to the positions held. • Under the Registered Clubs Act directors can be paid honorariums in respect of their services as directors provided that the sum of money representing the honorariums has been approved by a resolution passed at a general meeting of members. • The members entitled to vote on the Third, Fourth, Fifth and Sixth Ordinary Resolutions must be those who are entitled under the Club’s Constitution to vote in the election of the Board. • To be passed, each of the Third, Fourth, Fifth and Sixth Ordinary Resolutions requires a vote from a simple majority of members who being eligible to do so vote in person on each resolution at the meeting. • The Registered Clubs Act provides that: - members who are employees of the Club are not entitled to vote; and - proxy voting is prohibited
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5. LIFE MEMBERSHIP To consider and if thought fit pass the following Resolution:
RESOLUTION That the members hereby posthumously confer Life membership on the late Jack Crawford
NOTES TO MEMBERS • The late Jack Crawford rendered long and meritorious service to the Club during his lifetime and the Board of the Club consider that it would be a fitting tribute to him if Life membership could be conferred on him. • Jack joined the Board in 1969 and was a Director of the Club until 1987. Jack made a significant contribution to the Club, having a very strong influence on financial procedures and controls in the Club during his time as a Director. • Jack also acted as an auditor or treasurer for many local sporting, cultural and charitable organisations in and around Campbelltown until his untimely passing in December 1987 • To be passed the Resolution requires votes from not less than two-thirds of the members present and voting at the meeting. • Life members, General members and Social members are eligible to vote on the Resolution.
6. SPECIAL RESOLUTION The Special Resolution is to be read in conjunction with the notes to members set out below. Also only General members and Life members can vote on the Special Resolution.
To consider and if thought fit pass the following resolution which is proposed as a Special Resolution: That the Constitution of Campbelltown Catholic Club Limited be amended as follows: a. By deleting paragraph (a) of Rule 47 and in its place inserting the following new paragraph and sub paragraphs: a. (i) The Board shall consist of not more than nine (9) directors who shall comprise a President (elected by the directors in accordance with Rule 47(c) and up to eight (8) ordinary directors. (ii) Notwithstanding sub paragraph (i) of this Rule 47(a), if prior to the Annual General Meeting in 2020 casual vacancies occur in the Board the Board shall not fill those casual vacancies nor will those casual vacancies be filled by election at a general meeting so that eventually (but subject to subparagraph (iii) of this Rule 47(a), the number of directors remaining is seven (7) being a President and six (6) ordinary directors. (iii) For the purposes of the Annual General Meeting in 2020 and thereafter sub paragraphs (i) and (ii) of this Rule 47(a) shall cease to apply and in their place the Board shall (subject to Rule 49A) consist of not more than seven (7) directors comprising a President (elected by the directors in accordance with Rule 47(c) and six (6) ordinary directors.” b. By deleting from paragraph (b) of Rule 47 the opening words which are as follows: “Until the Annual General Meeting in 2009 the Board shall be elected annually but for the purposes of and with effect from the Annual General Meeting in 2009 and thereafter” so that the opening words of that paragraph read:
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Campbelltown Catholic Club
BUSINESS OF ANNUAL GENERAL MEETING
CONTINUED
“The directors shall be elected in accordance with the triennial rule as provided in Schedule 4 to the Registered Clubs Act which is set out in the Schedule below”. c. By inserting after Rule 49 the following new Rule 49A: a. “49A. a. Notwithstanding Rule 47(a), when the Board of Directors comprises not less than seven (7) directors being a President and six (6) ordinary directors (all of whom are to be elected in accordance with this Constitution), then pursuant to section 30(1)(b1) of the Registered Clubs Act and pursuant to and on the terms and conditions set out in Regulation 31 of the Registered Clubs Regulations 2015 the Board may appoint up to two (2) persons who are General members or Social members of the Club to be directors each with a maximum term of office as determined by the Board but not exceeding three (3) years. b. Rule 48 shall not apply to a member appointed as a director pursuant to this Rule 49A. c. A director appointed pursuant to this Rule 49A has all the rights and duties of a director but notwithstanding any other Rule, is not eligible to be elected or appointed to the office of President or as chairperson of the Board.”
• This reduction in the number of directors is to be achieved by not filling casual vacancies as they arise but in any event for the purposes of the Annual General Meeting in 2020 and thereafter the number of directors will be seven (7) comprising a President and six (6) ordinary directors. • The reason for this proposed reduction in the number of directors is to keep up with current trends in corporate governance where there is a move to smaller more focused and hardworking boards which is a move supported by ClubsNSW. The maximum number of directors which registered clubs are allowed to have is nine (9) but ClubsNSW consider a smaller number better and in this regard ClubsNSW itself has a board of six (6) directors. • A further reason to reduce the Board from nine (9) to seven (7) is to allow the Club to make use of the powers given under section 30(1)(b1) of the Registered Clubs Act and Regulation 31 of the Registered Clubs Regulations 2015 to appoint up to two (2) directors who have special skills relevant to the Club. In this regard Regulation 31 of the Registered Clubs Regulations 2015 provides as follows: “31 Appointments made by governing body (1) The elected members of the governing body of a registered club may appoint up to 2 persons as members of the governing body. (2) A person appointed under subclause (1):
NOTES TO MEMBERS ON SPECIAL RESOLUTION
a. may be appointed for a term of no more than 3 years, and
• If the Special Resolution is passed its effect will be to reduce the Board from nine (9) directors to seven (7) directors.
b. must be an ordinary member of the club at the time of, and for the duration of, his or her appointment, and
25
Annual Report 2017
BUSINESS OF ANNUAL GENERAL MEETING
CONTINUED
c. is not eligible for re-appointment under subclause (1), including reappointment after the end of that term. (3) Within 21 days of an appointment being made under subclause (1), a notice must be clearly displayed on a notice board on the premises of the registered club and on the club’s website (if any) that states: a. the reasons for the person’s appointment, and b. the person’s relevant skills and qualifications, and c. any payments to be made to the person in connection with his or her appointment.” • Please note that all General Members, Social Members and Life Members under the Club’s Constitution are “ordinary members” for the purposes of Regulation 31 and generally under the Registered Clubs Act. • Given the significant projects that the Club is likely to be pursuing over the next few years and the need for diversity on the Board (while retaining a majority of the Board as members of the Catholic faith) these two (2) appointments are viewed as being beneficial to the Club. • Although the maximum term of office for a director appointed under Regulation 31 is three years the Board proposes to make appointments for periods of six months but reserving the right to extend this period for further periods of six months up to the maximum of three years permitted under Regulation 31. • Only General Members and Life Members are eligible under the Constitution to vote on the Special Resolution (refer Rule 106).
26
• To be passed the Special Resolution requires votes from not less than three quarters of those General Members and Life Members who vote on the Special Resolution at the meeting. • The Registered Clubs Act provides that: - Members who are employees of the Club are not entitled to vote on the Special Resolution. - Proxy voting is prohibited.
7. GENERAL BUSINESS NOTE TO MEMBERS General business is an opportunity for individual members to make comments and recommendations to the Board.
By Order of the Board
Dated: 29 August 2017 Michael Lavorato Chief Executive Officer
Campbelltown Catholic Club
DIRECTORS REPORT YOUR DIRECTORS SUBMIT THEIR REPORT ON CAMPBELLTOWN CATHOLIC CLUB LIMITED (THE “CLUB”) FOR THE YEAR ENDED 30 JUNE 2017. The names of the Club’s Directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period.
DIRECTORS
NUMBER OF MEETINGS ATTENDED
NUMBER OF MEETINGS HELD*
David James Olsson, MBA, FCPA, JP Finance Manager Director from 2000, President from 2005
28
28
Mary Ellen Bland, GAICD School Teacher Director from 2003
25
26
Stephen Wayne Carter, JP Company Director Director from 2002, Board Secretary from 2003
23
25
David Michael McDonald,CP General Manager Director from 2002, Treasurer from 2005
31
31
Alan Anthony Scott Retired Director from 1988
23
24
-
-
Leo John Delissen Retired Director from 2005
26
28
Peter James Meadows, MBA Company Director Director from 2011
18
18
Peter Joseph Crittenden, DipLaw(SAB) Lawyer Director from 2015
13
16
Andrew James Stapleton General Manager Appointed: 2 November 2016
11
11
John William Towers (ceased: 7 July 2016) Revenue Accountant Director from 2002
* Number of meetings held during the time the director held office during the year.
27
Annual Report 2017
DIRECTORS REPORT CONTINUED
PRINCIPAL ACTIVITIES The principal activity of the Club is that of a Registered Club (“Club”). In addition, the Club also operates a fitness centre, hotel, convention centre, golf course and clubhouse.
DIVIDENDS
• Capital investment in all facilities to ensure they continue to meet member expectations • Growth in revenues through an expansion of our business and offerings
The Club is prohibited from paying dividends by its Constitution.
MEASUREMENT OF PERFORMANCE
OPERATING RESULTS FOR THE YEAR
• Trading performance to budget
The net profit after tax of the Club for year ended 30 June 2017 was $4,782,878 (2016 : $5,383,860).
SHORT AND LONG-TERM OBJECTIVES The Club’s short-term and long-term objective is to support Catholic Education, Sport and Culture in the Macarthur area. The Club aspires to be the premier entertainment venue in South West Sydney through the provision of highquality facilities and excellence in customer service, supported by quality entertainment, food, beverage, gaming, accommodation and fitness services for members and guests.
STRATEGIES FOR ACHIEVING OBJECTIVES The Club undertakes a number of strategies to achieve the above objectives. • The Board’s Strategic Plan is monitored and reviewed on a regular basis • High level of financial support for community organisations in accordance with the Club’s Charter • Diversification of business to reduce the
28
Club’s reliance on gaming revenue
The Club measures financial and operational performance using the following key indicators:
• EBITDA and EBITDARD performance to industry standards • Departmental measures such as gross profit and wage percentages • Members’ feedback • Patronage into the premises • Mystery Shopper reviews • Market research
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There have been no significant changes in the state of affairs of the Club during the year.
SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD There have been no significant events occurring after the reporting period which may affect either the Club’s operations or results of those operations or the Club’s state of affairs.
Campbelltown Catholic Club
DIRECTORS REPORT CONTINUED
INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS During or since the financial year, the Club has not indemnified or agreed to indemnify any person who is or has been an officer or auditor of the Club or of a related body corporate against any liability. No premiums were payable by the Club in respect of this policy. The Club policy provides against certain liabilities (subject to exclusions) for persons who are or have been officers of the Club or of a related body corporate. The insurance policy does not provide details of the premiums paid in respect of individual officers of the Club.
DIRECTORS’ REMUNERATION No director of the company has, since the end of the previous financial year, received or become entitled to receive a benefit by reason of a contract made by the director or with a company in which they have a substantial financial interest, except as detailed in Note 18 - Related party information.
AUDITOR INDEPENDENCE DECLARATION The Directors have received a declaration from the auditor of Campbelltown Catholic Club Limited. This has been included on page 4.
INDEMNIFICATION OF AUDITORS To the extent permitted by law, the Club has agreed to indemnify its auditors, Ernst & Young, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young during or since the financial year.
Signed in accordance with a resolution of the Directors.
David Michael McDonald Director 29 August 2017
Stephen Wayne Carter Director 29 August 2017
29
Annual Report 2017
Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Auditor’s Independence Declaration to the Directors of Campbelltown Catholic Club Limited As lead auditor for the audit of Campbelltown Catholic Club Limited for the financial year ended 30 June 2017, I declare to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) no contraventions of any applicable code of professional conduct in relation to the audit.
Ernst & Young
Daniel Cunningham Partner Sydney 29 August 2017
30
Campbelltown Catholic Club
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2017
NOTES
2017 - $
2016 - $
Other income
4.2
50,772
54,898
Sale of goods and services
4.1
65,810,042
62,033,232
Cost of goods sold
(6,177,405)
(5,524,177)
Poker machine revenue taxes
(9,617,338)
(9,051,364)
Employee benefit expenses
4.4
(20,274,091)
(18,441,196)
Depreciation expense
4.5
(7,917,034)
(7,363,802)
Donations
(1,366,782)
(1,348,007)
Marketing and promotions
(3,866,102)
(3,778,875)
Repairs and maintenance
(2,004,920)
(1,995,906)
Utilities
(2,104,913)
(1,717,184)
Cleaning
(1,216,380)
(1,066,024)
(610,562)
(694,603)
-
(32,071)
Other expenses
(5,922,409)
(5,691,061)
Profit before income tax
4,782,878
5,383,860
-
-
4,782,878
5,383,860
-
-
4,782,878
5,383,860
Finance costs
4.3
Gain/(loss) on disposal of assets
Income tax expense Profit for the year Other comprehensive income Total comprehensive income for the year
5
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
31
Annual Report 2017
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017
CURRENT ASSETS
NOTES
2017 - $
2016 - $
Cash
6
6,821,596
2,120,567
Trade and other receivables
7
426,946
555,449
Inventories
8
398,677
402,198
Other assets
9
312,975
309,692
7,960,194
3,387,906
115,533,052 4,852,044
117,470,052 4,852,044
120,385,096
122,322,096
Total current assets Non-current assets Property, plant and equipment
10
Intangible assets
11
Total non-current assets Total assets
128,345,290 125,710,002
Liabilities and equity Current liabilities Trade and other payables Interest-bearing loans and borrowings
12 13
4,880,802 230,530
4,515,983 238,295
Provisions
14
2,675,019
2,460,178
Other liabilities
15
70,639
65,650
7,856,990
7,280,106
Interest-bearing loans and borrowings
12 13
5,402 12,000,000
6,812 14,730,532
Provisions
14
463,457
455,989
12,468,859
15,193,333
20,325,849
22,473,439
Total current liabilities Non-current liabilities Trade and other payables
Total non-current liabilities Total liabilities Net assets
108,019,441 103,236,563
Members’ equity Retained earnings Total members’ equity
108,019,441
103,236,563
108,019,441 103,236,563
The above statement of financial position should be read in conjunction with the accompanying notes.
32
Campbelltown Catholic Club
STATEMENT OF CHANGES IN MEMBERS EQUITY
FOR THE YEAR ENDED 30 JUNE 2017
RETAINED EARNINGS As at 1 July 2015
Profit for the year Other comprehensive income Total comprehensive income
$97,852,703
TOTAL MEMBERS EQUITY $ 97,852,703
5,383,860 5,383,860 5,383,860 5,383,860
At 30 June 2016
103,236,563
103,236,563
As at 1 July 2016
103,236,563
103,236,563
Profit for the year
4,782,878
4,782,878
Other comprehensive income Total comprehensive income At 30 June 2017
- 4,782,878 4,782,878 108,019,441
108,019,441
The above statement of changes in Members’ equity should be read in conjunction with the accompanying notes.
33
Annual Report 2017
STATEMENTS OF CASHFLOW
FOR THE YEAR ENDED 30 JUNE 2017 Notes
2017 - $
2016 - $
72,538,856 (58,534,709)
68,099,210 (54,514,233)
23,113
54,898
Operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received
Interest paid Net cash flows from operating activities
(610,562)
(694,603)
13,416,698
12,945,272
55,000
149,820
Investing activities Proceeds from sale of property, plant and equipment
Acquisition of property, plant and equipment Net cash flows used in investing activities Financing activities Repayment of hire purchase principal Payment of borrowings Net cash flows used in financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June
6
(6,031,375)
(17,251,906)
(5,976,375)
(17,102,086)
(239,294) (2,500,000)
(238,294) -
(2,739,294) 4,701,029
(238,294) (4,395,108)
2,120,567
6,515,675
6,821,596
2,120,567
The above statement of cash flows should be read in conjunction with the accompanying notes.
34
Campbelltown Catholic Club
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
1. CORPORATE INFORMATION The financial statements of Campbelltown Catholic Club Limited for the year ended 30 June 2017 were authorised for issue in accordance with a resolution of the Directors on 29 August2017. Campbelltown Catholic Club Limited is a Club limited by guarantee with each member of the Club liable to contribute an amount not exceeding $2.00 in the event of the Club being wound up. The nature of the operations and principal activities of the Club are described in the directors’ report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Basis of preparation Statement of compliance The financial report is a general purposes financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards - Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except where stated. Accounting policies adopted by the Club are consistent with those of the previous year, unless otherwise stated. The financial report is presented in Australian dollars ($). b. Changes in accounting policies and disclosures i. Changes in accounting policies, new and amended standards and interpretations The accounting policies adopted are consistent with those of the previous financial year.
ii. Accounting Standards and Interpretations issued but not yet effective Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Club for the annual reporting period ended 30 June 2017. The Directors have not early adopted any of these new or amended standards or interpretations. The Director have not yet fully assessed the impact of these new or amended standards (to the extent relevant to the Club) and interpretations. c. Current versus non-current classification The Club presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current.
35
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) A liability is current when: • It is expected to be settled in the normal operating cycle • It is held primarily for the purpose of trading • It is due to be settled within twelve months after the reporting period, or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Club classifies all other liabilities as non-current. d. Cash Cash in the statement of financial position comprises cash at bank and on hand. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash as defined above. e. Trade and other receivables Trade receivables, which generally have 30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Club will not be able to collect the receivable. f. Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in firstout principle, and includes expenditure
36
incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale. g. Property, plant andequipment Capital work in progress and plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Club depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. Depreciation is calculated on a straightline basis over the estimated useful lives of the assets, as follows: Buildings 40 years Plant and equipment 4 to 15 years Motor vehicles 4 to 8 years Course improvement 4 to 25 years An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and
Campbelltown Catholic Club
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
the carrying amount of the asset) is included in the statement of profit or loss and other comprehensive income when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. h. Impairment Non-financial assets, other than goodwill and indefinite life intangibles, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Club conducts an annual internal review of asset values, which is used as a source of information to assess for any indicators of impairment. External factors, such as changes in expected future processes, technology and economic conditions, are also monitored for indicators of impairment. If any indication of impairment exists, an estimate of the assets recoverable amount is calculated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows from other assets or groups of assets. Non-financial assets, other than goodwill, that suffered an impairment, are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.
i. Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis. j. Trade and other payables Trade and other payables are carried at amortised cost and due to their shortterm nature they are not discounted. They represent liabilities for goods and services provided to the Club prior to the end of the financial year that are unpaid and arise when the Club becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition. k. Interest-bearing loans and borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid on
37
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings. Borrowings are classified as current liabilities unless the Club has an unconditional right to defer settlement of the liability for a least 12 months after the reporting date. l. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. m. Leases The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset (or assets), even if that asset is (or those assets are) not explicitly specified in an arrangement. A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Club is classified as a finance lease. An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an operating expense in
38
the statement of profit or loss and other comprehensive income on a straight-line basis over the lease term. n. Provisions Provisions are recognised when the Club has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs. o. Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Club and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The specific recognition criteria described below must also be met before revenue is recognised. Sale of goods Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of
Campbelltown Catholic Club
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates. Rendering of services Revenue from the rendering of a service is recognised upon control of the right to receive payment for the services has been passed to the Club. Interest income Interest income is recognised upon control of the right to receive the interest payment has been passed to the Club as the interest accrues. p. Taxes Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date. Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except: • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. The carrying amount of deferred tax assets is reviewed at each reporting date
and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except: • When the GST incurred on a sale or purchase of assets or services is not payable to or recoverable from the taxation authority, in which case the GST is recognised as part of the revenue or the expense item or as part of the cost of acquisition of the asset, as applicable • When receivables and payables are stated with the amount of GST included
39
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows.
3. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the Club’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Club based its assumptions and estimates on parameters available when
40
the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Club. Such changes are reflected in the assumptions when they occur. Taxes Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies. Impairment of intangibles with indefinite useful lives The Club determines whether intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash generating units to which the intangibles with indefinite useful lives are allocated. Long service leave The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at reporting date. In determining the present value of the liability, attrition rates and pay increase through promotion and inflation have been taken into account.
Campbelltown Catholic Club
4. REVENUE AND EXPENSES 4.1 SALES OF GOODS AND SERVICES 2017 - $
2016 - $
37,884,214
35,885,870
Liquor revenue
4,976,313
4,726,114
Catering revenue
7,818,610
6,906,927
Aquafit revenue
3,787,103
3,459,856
Rydges revenue
8,991,323
8,443,331
Golf course revenue
765,328
868,236
Entertainment receipts
384,613
520,266
Subscriptions
658,137
704,185
Commissions
365,734
365,047
Room and equipment hire
172,125
151,400
Gaming revenue
Other income
6,542 2,000 65,810,042
62,033,232
2017 - $
2016 - $
27,659
-
4.2 OTHER INCOME Gain on disposal of assets Interest income
23,113 54,898 50,772
54,898
2017 - $
2016 - $
591,085
664,162
4.3 FINANCE COSTS Interest expense - bank Interest expense - hire purchase liabilities
19,477 30,441 610,562
694,603
2017 - $
2016 - $
17,844,442
16,227,542
1,400,526
1,289,172
976,182
899,636
4.4 EMPLOYEE BENEFITS EXPENSE Wages and salaries Superannuation Payroll tax Fringe benefits tax
52,941 24,846 20,274,091
18,441,196
2017 - $
2016 - $
Buildings
3,483,875
3,211,955
Plant and equipment
4,323,364
4,057,463
4.5 DEPRECIATION EXPENSE
Course improvements
109,795 94,384 7,917,034
7,363,802
41
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
5. INCOME TAX The major components of income tax expense for the years ended 30 June 2017 and 2016 are: STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
2017 - $
2016 - $
180,621
232,229
(180,621)
(232,229)
-
-
Current income tax: Current income tax charge Deferred tax: Utilisation of carried forward tax losses Income tax expense reported in the statement of profit or loss and other comprehensive income
Reconciliation of tax expense and the accounting profit multiplied by Australia’s domestic tax rate for 2016 and 2017:
Accounting profit before tax At Club’s statutory income tax rate of 30% (2016: 30%) Member only income Member only expenses Other items (net) Effect of mutuality Utilisation of tax losses Income tax expense
2017 - $
2016 - $
4,782,878 1,434,863
5,383,860 1,615,158
1,333,572
(1,222,057)
(1,356,427)
1,291,354
381,079
417,710
(1,612,466)
(1,869,936)
(180,621) (232,229) -
At 2017, the Club had accumulated taxable losses of $475,621 (2016: $656,242) carried forward. Future income tax benefits have not been brought to account at balance sheet date as the directors do not believe that the realisation of the asset is probable. Terms and conditions The commercial bill facility of $25,000,000 (2016: $25,000,000) is a fixed term facility maturing in December 2018. The facility is a rolling commercial bill facility with commercial bills taken out for periods of 30 to 180 days. Payment of interest and fees only is required during the term of the facility, with the facility subject to half yearly review. Under the terms of the facility, the Club is required to comply with certain financial and non-financial covenants.
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-
Campbelltown Catholic Club
NOTES TO FINANCIAL STATEMENTS
CONTINUED
6. CASH 2017 - $
2016 - $
6,821,596
2,120,567
2017 - $
2016 - $
Trade receivables
71,663
48,049
Allowance for doubtful accounts
(1,750)
(1,750)
69,913 357,033
46,299 509,150
426,946
555,449
2017 - $
2016 - $
Liquor stock - at cost
291,453
271,406
Catering stock - at cost
107,224
94,925
-
35,867
398,677
402,198
2017 - $
2016 - $
298,975
295,692
14,000
14,000
312,975
309,692
Cash at bank and on hand
For the purpose of the statement of cash flows, cash comprises the above. For details of commercial bill and bank overdraft facilities, refer to note 13.
7. TRADE AND OTHER RECEIVABLES Current
Other receivables
8. INVENTORIES Current
Golf shop stock - at cost
9. OTHER ASSETS Current Prepayments Security deposits
43
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
10. PROPERTY, PLANT AND EQUIPMENT 2017 - $
2016 - $
3,100,343
3,100,343
At cost
138,837,570
133,688,819
Accumulated depreciation
(38,701,414)
(36,446,529)
100,136,156
97,242,290
1,276,787
5,221,530
26,860,562
26,325,678
Accumulated depreciation
(17,005,573)
(15,700,757)
Net carrying amount
9,854,989
10,624,921
92,947
92,947
Freehold land At cost Buildings
Net carrying amount Capital work in progress At cost Plant and equipment At cost
Motor vehicles At cost Accumulated depreciation Net carrying amount
(46,470) (29,154) 46,477
63,793
1,291,218
1,146,692
Course improvements At cost Accumulated depreciation Net carrying amount
(473,929) (404,588) 817,289
742,104
817,518
817,518
Leased plant and equipment At cost Accumulated depreciation Net carrying amount
(516,507) (342,447) 301,011
475,071
At cost
172,276,945
170,393,527
Accumulated depreciation
(56,743,893)
(52,923,475)
115,533,052
117,470,052
Total property, plant and equipment
Net carrying amount
44
Campbelltown Catholic Club
RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND THE END OF THE YEAR
2017 - $ 2017 -$
Freehold land At 1 July Net book value at 30 June
3,100,343 3,100,343
Buildings At 1 July Additions Transfer from work in progress Depreciation charge for the year Net book value at 30 June
97,242,290 6,674 6,371,067 (3,483,875) 100,136,156
Capital work in progress At 1 July
5,221,530
Additions
2,960,782
Transfers to buildings Transfers to course improvements Transfers to plant and equipment
(6,371,067) (91,758) (442,700)
Net book value at 30 June
1,276,787
Plant and equipment At 1 July
10,624,921
Additions
2,970,697
Transfer from work in progress
442,700
Disposals
(51,341)
Depreciation charge for the year Net book value at 30 June Motor vehicles At 1 July Depreciation charge for the year Net book value at 30 June
(4,131,988) 9,854,989
63,793 (17,316) 46,477
45
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
2017 -$
Course improvements At 1 July
742,104
Additions
93,222
Transfer from work in progress
91,758
Depreciation charge for the year Net book value at 30 June
(109,795) 817,289
Leased plant and equipment At 1 July Depreciation charge for the year Net book value at 30 June
475,071 (174,060) 301,011
Total property, plant and equipment At 1 July Additions
117,470,052 6,031,375
Disposals
(51,341) -
Transfer Depreciation charge for the year Net book value at 30 June
(7,917,034) 115,533,052
Assets pledged as security A mortgage over freehold land and buildings has been granted as security for the commercial bill and bank overdraft facilities. The terms of the mortgage preclude the assets being sold or being used as security for further mortgages without the permission of the mortgage holder. The mortgage also requires buildings that form part of the security to be fully insured at all times. Floating and fixed charges over the assets have also been granted as security for the commercial bill and bank overdraft facilities except for assets under hire purchase which are pledged as security for the associated liability. For details of commercial bill and bank overdraft facilities, refer to note 13.
46
Campbelltown Catholic Club
Valuations The Club’s land, buildings and plant and equipment were valued by Global Valuation Services in February 2017. These valuations were based upon the fair values in an open market of assets held at that time and were as follows: Land
$13,000,000
Buildings
$99,700,000
Plant and equipment
$11,258,522
For details of commercial bill and bank overdraft facilities, refer to note 13. The Club’s Golf Course leasehold land improvements, buildings and plant and equipment were valued by Global Valuation Services in February 2017. These valuations were based upon the fair values in an open market of assets held at that time and were as follows: Leasehold land and building improvements
$4,720,000
Plant and equipment
$1,490,110
The directors have not adopted the above valuations for the purposes of the financial statements and are of the opinion that land, buildings and plant and equipment are not being carried at amounts in excess of their recoverable amounts.
11. INTANGIBLE ASSETS 2017 - $
2016 - $
4,705,044
4,705,044
147,000
147,000
Poker machine licences At cost Holiday accommodation licences At cost Total intangible assets At cost Net carrying amount
4,852,044 4,852,044 4,852,044
4,852,044
Measurement Poker machine entitlements have been determined to be intangible assets with an indefinite useful life. They are not being amortised but are tested for impairment at least annually. Impairment testing by the directors has concluded that there are no indicators of impairment.
47
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
12. TRADE AND OTHER PAYABLES 2017 - $
2016 - $
1,924,194 2,472,121
1,608,465 2,286,282
Current Trade payables Other payables and accrued expenses Deferred revenue
484,487 621,236 4,880,802
4,515,983
5,402
6,812
2017 - $
2016 - $
230,530
238,295
12,000,000 -
14,500,000
12,000,000
14,730,532
Non-current Deferred revenue
13. INTEREST-BEARING LOANS AND BORROWINGS Current Hire purchase liability Non-current Commercial bills Hire purchase liability
230,532
Terms and conditions The commercial bill facility of $25,000,000 (2016: $25,000,000) is a fixed term facility maturing in December 2018. The facility is a rolling commercial bill facility with commercial bills taken out for periods of 30 to 180 days. Payment of interest and fees only is required during the term of the facility, with the facility subject to half yearly review. Under the terms of the facility, the Club is required to comply with certain financial and non-financial covenants. Interest is charged at variable rates on the outstanding commercial bills totalling $12,000,000(2016:$14,500,000) at rates prevailing at the time of roll-over. At 30 June 2017, the average implicit interest rate on the outstanding commercial bills was 2.32% (2016: 3.7%). Hire purchase agreements have remaining terms ranging from 0.5 to 3.5 years and an average implicit discount rate of 5.48% (2016: 5.5%). Hire purchase liabilities are secured by a charge over the associated assets. The Club has access to a bank overdraft facility of $1,000,000 (2016: $1,000,000). This facility has not been drawn in the current financial year.
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Campbelltown Catholic Club
14. PROVISIONS 2017 - $
2016 - $
2,675,019
2,460,178
463,457
455,989
2017 - $
2016 - $
70,639
65,650
Current Employee entitlements Non-current Employee entitlements
15. OTHER LIABILITIES Current Staff deposits Terms and conditions Staff deposits represent funds held by the Club on behalf of staff under a staff Christmas saving plan. The deposits are non-interest bearing and are expected to be repaid in December 2017.
16. COMMITMENTS AND CONTINGENCIES 16.1 OPERATING LEASE COMMITMENTS Future minimum rentals payable under non-cancellable operating leases as at 30 June are, as follows: 2017 - $
2016 - $
26,696
25,472
15,681
24,570
42,377
50,042
2017 - $
2016 - $
237,134
257,773
-
237,134
237,134
494,907
Future finance charges
(6,604)
(26,080)
Hire purchase liability
230,530
468,827
230,530 -
238,295
230,530
468,827
Within one year After one year but not more than five years Total minimum lease payable 16.2 HIRE PURCHASE CONTRACTS Within one year After one year but not more than five years Total minimum lease payments
Comprises: Current liability Non-current liability
230,532
49
Annual Report 2017
NOTES TO FINANCIAL STATEMENTS
CONTINUED
16.3 CAPITAL COMMITMENTS Capital expenditure of $817,830 (2016: $1,487,385) has been contracted at balance date but not provided in the financial statements.
16.4 CONTINGENT LIABILITIES There were no contingencies as at the reporting date (2016: $nil).
17. NON-CORE PROPERTY The Directors of the Club have not determined if any segment of the Club’s property is to be defined as non-core property in accordance with Section 41J of the Registered Clubs Act. Any proposal to classify a segment of the Club’s property as non-core property in accordance with Section 41J of the Registered Clubs Act will be considered by members at that time.
18. RELATED PARTY INFORMATION 18.1 DIRECTORS The directors named in the attached Directors’ report each held office as a director of the Club for the duration of the financial year or for the periods indicated.
18.2 REMUNERATION OF DIRECTORS Income paid or payable, or otherwise made available, in respect of the financial year to all directors of the Club who were directors during the year: 2017 - $
2016 - $
58,291
68,500
Number
Number
8 1
9 1
Applicable income bands: $0 - $9,999 $10,000 - $19,999 The above remuneration relates to honorariums paid to the directors during the year.
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Campbelltown Catholic Club
18.3 DIRECTORS’ EXPENSES 2017 - $ Expenses incurred by directors
34,807
2016 - $ 37,610
18.4 OTHER RELATED TRANSACTIONS All other transactions entered into during the year with related parties, directors and director-related entities were on terms and conditions no more favourable to those available to other customers and suppliers. Peter Crittenden is a partner at Marsdens Law Group. The Club engages Marsdens Law Group from time to timefor various legal matters including property, commercial and civil matters. The Club paid $6,808 (2016: $3,692) for services provided during theyear.
19. KEY MANAGEMENT PERSONNEL The key management personnel who held the following positions had authority and responsibility for planning, directing and controlling the activities of the entity directly or indirectly during the financial year. Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Marketing Officer General Manager People & Culture General Manager Rydges Executive General Manager Aquatfit KEY MANAGEMENT PERSONNEL COMPENSATION Short-term Post-employment
2017 - $
2016 - $
1,603,387
1,518,050
136,309 126,468 1,739,696
1,644,518
20. EVENTS AFTER THE REPORTING PERIOD There have been no events subsequent to reporting date which would have a material effect on the Club’s financial statements at 30 June 2017.
51
Annual Report 2017
DIRECTORS’ DECLARATION In accordance with a resolution of the Directors of Campbelltown Catholic Club Limited, we state that: In the opinion of the Directors: a. the financial statements and notes of Campbelltown Catholic Club Limited for the financial year ended 30 June 2017 are in accordance with the Corporations Act 2001,including: (i)
giving a true and fair view of the entity’s financial position as at 30 June 2017 and of its performance for the year ended on that date;and
(ii)
complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001;
b. there are reasonable grounds to believe that the Club will be able to pay its debts as and when they become due and payable.
On behalf of the board
David Michael McDonald Director 29 August 2017
Stephen Wayne Carter Director 29 August 2017
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Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
ey.com/au
Campbelltown Catholic Club
Ernst & Young
Tel: +61 2 9248 5555
200 George Street Fax: +61 2 9248 Independent Auditor's Report to the Members of5959 Campbelltown Sydney NSW 2000 Australia ey.com/au GPO Box 2646 Sydney NSW 2001 Catholic Club Limited
Opinion We have audited the financial report of Campbelltown Catholic Club Limited (the Company), which comprises the statement of financial position as at 30 June 2017, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements, including a summary significant accounting policies, and the directors' Independent Auditor's Report to ofthe Members of Campbelltown declaration. Catholic Club Limited In our opinion, the accompanying financial report of the Company is in accordance with the Opinion
Corporations Act 2001, including: We have audited the financial report of Campbelltown Catholic Club Limited (the Company), which comprises thea statement of view financial position as at financial 30 June 2017, the comprehensive a) giving true and fair of the Company's position asstatement at 30 Juneof2017 and of its income, statement of changes inthe equity statement cashand flows for the year then ended, notes to financial performance for yearand ended on thatof date; the financial statements, including a summary of significant accounting policies, and the directors' declaration. b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under a) giving a true and fair view of the Company's financial position as at 30 June 2017 and of its those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial financial performance for the year ended on that date; and Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and theDisclosure ethical requirements of the b) complying with Australian Accounting Standards – Reduced Requirements and the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Corporations Regulations 2001. Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled ourOpinion other ethical responsibilities in accordance with the Code. Basis for We accordance with Australian Standards. Our responsibilities under We conducted believe thatour theaudit auditinevidence we have obtained isAuditing sufficient and appropriate to provide a basis those for ourstandards opinion. are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the Report ethical requirements of the Information Other than the Financial Report and Auditor’s Thereon Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants that are toinformation. our audit of The the financial report in Australia. The directors(the are Code) responsible forrelevant the other other information comprisesWe thehave also fulfilled our other ethical responsibilities in accordance with the Code. information included in the annual report, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and We believe that thenot audit evidence have obtained isconclusion sufficient thereon. and appropriate to provide a basis accordingly we do express any we form of assurance for our opinion.
In connection with our audit of the financial report, our responsibility is to read the other information
Information Other than whether the Financial Report and Auditor’s Report Thereon and, in doing so, consider the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated. The directors are responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
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