2018
ANNUAL REPORT
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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 Annual Report 2018
Contents
Campbelltown Catholic Club Annual Report 2018
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PRESIDENTS WELCOME
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CEO’S REPORT
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LEADERSHIP TEAM
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OUR HIGHLIGHTS
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OUR PEOPLE
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OUR COMMUNITY
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OUR SCHOOLS
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NOTICE OF AGM
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ANNUAL REPORT
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President’s 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 2018. This report is to be considered at the Annual General Meeting to be held on Wednesday 7th November 2018 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 about $4.5m is a slight decrease on last year’s number, but still a very good result and reflects a continuingly pleasing return on our investment in upgraded Club facilities. Much of the decrease can be attributed to the effect on hotel trading of the extensions and renovations being undertaken, a position which is expected to reverse when the building works are completed. 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 17/18 we were once more able to provide a substantial level of donations to the community. A cash figure of over $1.4m was donated to schools, various charities and sporting clubs, a community assistance level of which all Club members should be very proud. As
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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 18/19. Members will be aware of extensions and renovations to our hotel, alluded to above and which are now largely complete. Parts of the new work are being handed over progressively as they complete and the results so far are extremely impressive. The work is due to be finalised in late October and interest in the new facilities has been very encouraging with a lot of functions and weddings already being booked. We are also looking to refresh a few more areas of the mother Club, hopefully this work commencing in the new calendar year. Several other investment options are being considered and further information will flow if these come to fruition. As has become part of our Corporate Governance regimen I have again conducted formal Board performance reviews with the Club Directors. I have previously said this process is designed to help the Board evaluate individual as well as collective performances over the review period. This year we utilised the Clubs NSW process which is in the form of a comprehensive questionnaire. Our methodology for review 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 Management team.
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 is testament to their attitude and dedication to their respective roles. I am regularly reminded that our Club is seen as a leader and an innovator by the industry and our standing is verification of 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 5pm on Wednesday 24th October 2018. 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 would normally conduct triumvirate elections with three positions on the Board up for election each year. However, the resignation of any Director(s) in the next couple of years will result in elections for a lesser number of Board positions. This is to comply with the change to the Club’s constitution endorsed by members at the 2017 AGM whereby Board numbers are to reduce to 7 by 2020. 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.
Campbelltown Catholic Club Annual Report 2018
CEO’s Report MICHAEL LAVORATO I am once again honoured to present this report to the members of Campbelltown Catholic Club. The financial year ended 30 June 2018 has been a very successful, albeit challenging, one for the Club. The profit of $4,511,083, which is a minor decrease from 2016/17, was delivered in an environment of low wage growth, restrained consumer confidence, increased utility costs and increasing competition for available disposable income. Construction work to add an additional 38 rooms to the Hotel, as well as refurbishing the existing 116 rooms, has been disruptive to Hotel trade during the year. This has had a significant impact on the Club’s profitability for the year, however we are very much looking forward to the completion of these works and presenting members with a stunning Hotel, food, beverage and conferencing facility in late 2018. The Club’s cash flows have remained very healthy and our strong EBITDA (Earnings before interest, tax and depreciation) has resulted in most of the construction costs for the Hotel being met from cashflow, without any increase in debt levels. Financial Overview The operating profit before income tax for the year was $4,511,083 which compared to a result of $4,782,878 last year. Revenues of $65,486 million were marginally below prior year due to construction work at the Hotel and the restraint on available accommodation and food and beverage offering. These Included: Gaming and revenue tax $13,683,022 Council & water rates $382,238 Payroll taxes $962,881 $15,028,141
Campbelltown Catholic Club Annual Report 2018
Cash donations to schools and the local community organisations increased to $1,425,824. In kind support in the hundreds of thousands of dollars in the form of subsidised room hire and meal costs added to the substantial community support total. Taxes and statutory charges were again significant in that they absorb 23 cents in each dollar of revenue earned. Future Investment
Aside from completion of the Hotel expansion in late 2018, the Club is currently finalising planning for improvements and refurbishment to the Club foyer, Café Samba and the internal gaming floor which will completely transform these areas. It is anticipated that these works will commence in 2019. I am pleased to inform members, and in particular members of Aquafit, that the replacement of the current cardio equipment with new Technogym equipment is scheduled for December 2018. Technogym is fast becoming the dominant equipment provider in the fitness industry and their offering in terms of quality, service and technology is far advanced on their competitors. Members will be very pleased with the new equipment and offering at Aquafit. The team at the Golf Club have a number of plans in place to ensure members and guests are provided with high quality facilities that they have come to expect. Some of these upgrades will not be readily recognisable to members, such as plant and equipment upgrades, access to water, and golf course improvements.
Restaurant property on Queen Street. The future use of this property will be detailed to members in due course Thank You
My thanks and appreciation goes to our President and Chairman David Olsson and to fellow Directors, who have given me, my Management team and staff support and encouragement throughout the year. To my Management team, thank you for your loyalty, dedication and hard work in achieving our strategic objectives. To all members of Staff, thank you for continuing to set benchmarks in service that are the envy of most Clubs and for your efforts to ensure that every visit from our members and guests is a memorable one. Finally to you the Members, thank you for your encouragement and support of the Club and its objectives and for all members who take the time to provide us with valuable feedback to ensure we are worthy to hold the title of “King of Clubs”.
Finally, the Club has made a strategic acquisition of the Fishers Ghost
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Leadership Team Back row left to right: Tony Holmes – Operations Manager Facilities, Security and Compliance David Turner – Manager Campbelltown Golf Club Graeme Derrig – Chief Marketing Officer Maryann Cook – Gaming Manager Roger Cubitt – Chief Financial Officer Peter Sheppard – Director Culinary Development Front row left to right: Megan Faint – Digital Manager Lance Howes – Information Technology Manager Jill Teeling – General Manager People and Culture Kristen Green – General Manager Aquafit Michael Lavorato – Chief Executive Officer Below: Brett Barlow – General Manager Rydges Campbelltown Absent from day of group photo
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Our Highlights Key Financial Information For The Year Ended 30 June 2018 The Club’s results were impacted by construction and refurbishment work at Rydges Campbelltown throughout the year, while general trading in other departments was pleasing. While households are experiencing increased costs for utilities, coupled with low wage growth, we are pleased to report that revenues have grown in the main Club, Aquafit and Campbelltown Golf Club during 2017-18.
During 2017-18 Campbelltown Catholic Club contributed $1,425,824 to the local community through grant funding, sponsorships, local projects, charity support and initiatives. In addition to this we provided in-kind support of $104,000, taking our total support for the community to $1,529,824. That is, of course, way above and beyond our NSW Clubgrants liability of $908,000.
HERE’S SOME OF THE BIG STATISTICS IN A NUTSHELL: HIGHLIGHTS
$
GROWTH
Total Revenue
65,377,813
-0.7%
4,511,083
-5.7%
14,149,324
-3.3%
1,425,824
4.3%
Total Assets
133,071,379
3.7%
Net Assets
112,530,524
4.2%
Profit Net Cashflow Donations
TAXES PAID Gaming and revenue tax
$ 13,683,022
Council, water rates & Land tax
384,238
Payroll taxes
962,881
TOTAL 88
15,028,141
Welcomed over
1 million patrons
259,911 Aquafit visits
Recycled
68.3
tonne of food waste
568,707 meals served
30,873 hotel room nights
27,882 rounds of golf
brewed
10,120
litres of craft beer
hosted
96,311 function guests
entertained
23,360 show patrons
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Our People Our people are our greatest asset, throughout 2017-18 we continued to inspire and develop our team. Here are a few examples of our leadership development opportunities and how we strive to set new benchmarks within the workplace.
White Ribbon Workplace Accreditation
Kokoda Youth Leadership Challenge
Violence against women is a serious, prevalent and preventable issue in Australia.
The Kokoda Youth Leadership Challenge is a national program offering young people the opportunity to walk the Kokoda Track. The program aims to identify young people who are potential leaders, and who have the ability to both inspire and educate other young people within their community.
On average one woman in Australia is killed every week as a result of partner violence. With over 300 female employees (65% of our workforce) it’s an issue Campbelltown Catholic Club feel very strongly about. As a leader in the local business community we’re determined to make a difference on this issue. Campbelltown Catholic Club is proudly working towards a White Ribbon Accredited workplace. We’re promoting respectful relationships and gender equality within the workplace and broader community and demonstrating a culture of zero tolerance to violence against women.
Campbelltown Catholic Club is an active participant in the program, sponsoring staff members each year to act as representatives of the Clubs’ diverse range of young leaders. 2018 recipients Craig Bulter - Assistant IT Manager and Melanie Tincknell - Gaming Attendant both rose to the challenge.
The Board and Management team have completed White Ribbon accredited training and the Club has established a White Ribbon Committee who are working collaboratively with a wide range of Domestic Violence (DV) advocacy groups in the local area. Club policies and procedures have been reviewed to reflect best practice in supporting any staff member or patron who may be experiencing a Domestic Violence situation.
“It was good to learn more about the individual battles of the campaign in 1942 and meet some of the descendants of the fuzzy wuzzy angels. “It also taught me that we’re more capable than we understand”, said Craig.
Our White Ribbon Accreditation submission was formally lodged on 30 August and will now commence a 3-month appraisal process. We anticipate a successful outcome by 30 November 2018.
“Seeing the way the villagers still live really hit home, so not having phones and everything else like that on the trip was quite nice,” she said. “Seeing how simply they live compared to how we do”.
Special thanks to our White Ribbon committee members: Jill Teeling (Chair Person), Nicole Reilly, Jeff McGill, Kellie Lopez, Louise Molland, Jessica Ciccone, Adam Cooke, Melinda Shiel and Graeme Derrig.
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For Melanie it wasn’t just the mental and historic lessons, but the cultural ones.
Campbelltown Catholic Club Annual Report 2018
Leadership Development & Digital Transformation Megan Faint was appointed to the role of Digital Manager in November 2017. Megan began her a career at the Club in 2008 as a Marketing Assistant. She developed a strong skill set in the digital space and progressed into more senior marketing roles. In 2015 Megan resigned from the Club to travel and lived and worked abroad for 2 years before returning to Australia in 2017. Her appointment to the newly created role of Digital Manager aligns with the Clubs’ digital transformation strategy. As part of her role Megan is working with Industry leaders as a representative on the ClubsNSW Digital Advisory Committee which explores ways new technology can help shape our future offering and maximise the customer experience. As part of this process Megan recently took part in a US study tour and attended the global Sales Force conference in San Francisco. She also had the opportunity to meet and experience site tours through iconic organisations including Google and Amazon. It’s a great example of the development opportunities afforded to members of our team and ultimately the value this adds to our Member experience.
Campbelltown Catholic Club Annual Report 2018
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Our Community Changing community for good.
We have again backed a wide range of interactions and shared experiences to inrich macarathur and actively contributed to worthy charitys. Just a few highlights include:
Share The Dignity
Carols In The Garden
Members showed incredible generosity in supporting our Share The Dignity Drive. A huge pile of used handbags were donated jammed packed with toiletries and sanitary items to be issued to local homeless women and victims of domestic violence, as part of the Club’s White Ribbon campaign.
Campbelltown Catholic Club has been the Naming Sponsor for the Carols in Garden event since 2015. It is, by far and away, the largest Carols event held in Macarthur attracting over 10,000 people. We are delighted to be able to help facilitate this fantastic event for our local Community and recently extended our Sponsorship agreement for another 3 years to 2020. We look forward to celebrating this annual event with you.
Collection bins were placed at Club Reception and Aquafit Reception to collect handbags (new or pre-loved in good condition) and/or essential items from shampoo to tampons and toothbrushes. Over 250 bags were donated.
Camp Quality – Team Kermit Campbelltown Catholic Club has been supporting Camp Quality for the last five years through “Team Kermit” who partake in their annual outback adventure raising money for this great charity. Camp Quality provide for children (0-13 years) impacted by cancer and their families to help create a better life by building optimism and resilience throughout each stage of their cancer experience. Right from diagnosis, throughout treatment and in
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remission or bereavement their programs support the whole family; at hospital, at home, back at school and away from it all. In the Macarthur area, through our support in the last twelve months alone they have helped 64 children and their families including 24 children who currently have cancer, three families with children who have lost a sibling and children who have a parent with cancer or who are currently in remission. 100% of all money donated goes directly to Camp Quality and its programmes and we are proud to be able to do our part.
Campbelltown Catholic Club Annual Report 2018
Safe-T-Card Project
Junior Sports Hot Shots Program Our Junior Sports Hot Shots Program continues to provide grass root support for local athletes. Each month the Club donates $500 to the best Sports Story received through our online portal. Stories don’t just have to be about achievement, it could be participation, overcoming adversity or may even be your own “Steven Bradbury” moment. Recent “Junior Sports Hot Shots’’ include: • • • • • •
Erin Wooldridge - Triathlete Ali Saleh - Tennis Alessandro De Nuntiis - Taekwondo Grace Augustine - Cricket Steven Hall - Basketball Jakeelie Hook - Cross Country
The Safe-T-Card project was initiated by the Clubs’ White Ribbon Committee and is specifically targeted to help local women in the highest risk category of Domestic Violence. The Club has provided ten hi-tech Safe-T-Cards and is working in close collaboration with Macarthur Women’s Domestic Violence Court Advocacy Service to identify and distribute these potentially lifesaving devices. The Safe-T-Card device is worn around the neck similar to an ID Card. One press of the button activates a Red Alert and the device connects with a call centre where operators can listen live to what is being recorded on the device and notify the Police with an exact GPS location. The Safe-T-Card program commenced in August 2017. The Club has committed to fully fund 10 Safe-T-Card devices for 3 years. In the first 6 months 15 women have accessed the device. Tanya Whitehouse of the Macarthur Women’s Domestic Violence Court Advocacy Service tells us: “This is something we would normally have to apply to Victim Services for, and that can take up to two months, so for two months those women are highly vulnerable, so the Catholic Club’s help in this vital stage is huge and has made such a difference to the safety of these women.”
Campbelltown Catholic Club Annual Report 2018
Natalie Van Coevorden Campbelltown Catholic Club is proud to support local athletes representing Australia on the world stage. Elite Triathlete Natalie Van Coevorden is a worthy recipient of this support. Macarthur born and bred, Natalie now lives and trains 4-5 months of the year in Spain competing in the World Triathlon Series (WTS). This year Natalie had a breakthrough event finishing with a 3rd place podium at the 2018 ITU’s World Triathlon Series (WTS) in Abu Dhabi. She recently returned home to continue her training through the Australian Summer. When based in Australia, Natalie can be found training regularly at Aquafit taking advantage of our world-class strength training and pool facilities.
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Our Schools
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Campbelltown Catholic Club Annual Report 2018
Catholic Schools
Max Potential
Campbelltown Catholic Club was founded to support Catholic education, sport and culture and 50 years on we remain true to this mission. The Club has contributed millions of dollars into local education, this year’s recipients include:
Campbelltown Catholic Club is again proud to partner with The Future Leader Group and numerous schools and businesses in the Macarthur to deliver the Campbelltown Catholic Club Max Potential Program. Max Potential is aimed at developing local leadership. Our vision for the Program is:
• • • • • • • • • • • • • • • • •
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 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 Justin’s Primary School, Oran Park St Francis Catholic College, Edmondson Park St Gregory’s College, Campbelltown John Therry Catholic High School, Rosemeadow St Patricks College, Campbelltown Our Lady of Mt Carmel College, Varroville Mater Dei, Camden Magdalene High School, Narellan St Benedict’s College, Oran Park
“To enhance regional wellbeing through community engagement and common vision to maximise the lives and leadership potential of young people in the Macarthur region” As a community leader in Macarthur, we understand the importance of investing in the future leadership of our region. The young adult scholarship recipients have grown in their personal leadership through a strong and personal relationship with their individual coaches. They have also taken significant steps toward creating positive change for our community through their individual Community Service Projects. The Club had five team members participating as coaches this year including: Andrew Sykes, Amber Willsher, Bree Tierney, Dylan Small and Alan Montgomery.
Learning Links - Reading For Life Program The ‘Reading For Life Program’ is an evidence based program designed to target children in years 3-5 who are struggling and falling behind in their literacy development. The program, run by Learning Links, and has been enormously successful with children making valuable gains in reading accuracy, fluency and comprehension. Most importantly, the confidence and enjoyment of reading in participating children has increased, influencing their selfesteem and motivation to learn. “The program outcomes for these kids can be life changing. Without reading and literacy skills these children are at a high risk of disengaging from education altogether. It's incredibly important that we can help these kids before they enter high school.” Campbelltown Catholic Club is proud to partner with Learning Links by providing program funding and volunteers to run these programs. During 2017 the Club funded the Reading For Life program run at Guise Public School. For 2018 the Club doubled its support funding both a Reading for Life and Counting For Life program at Campbelltown Public Primary School. Catholic Club staff have generously donated their time to train and facilitate these programs.
Soup Plus program Each week a group of 10 school age students attend the Club to learn kitchen skills and produce fresh soup and bread to be distributed to those in need. The program designed by Peter Sheppard - Director Of Culinary Development, helps students develop an understanding of basic hygiene and safe food handling techniques. They also learn basic kitchen skills including: Bread making, baking, cutting/chopping and soup, stock and sauce making. Students also have the opportunity to tend the club gardens, growing their exposure to vegetables and healthy food options. The soup and bread is collected by Shining Stars and distributed to locals in most need.
Campbelltown Catholic Club Annual Report 2018
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Notice of annual general meeting Campbelltown Catholic Club Limited Acn 000 504 110 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2018
Notice is hereby given that the Fifty Third 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 7 November 2018 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 24 October 2018. 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 Annual Report 2018
Business of Annual General Meeting 1. MINUTES To confirm the Minutes of the Fifty Second Annual General Meeting held on 1 November 2017.
2. ANNUAL REPORTS To receive and consider: • the report of the Board of Directors for the year ended 30th June 2018; • 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 2018; • the Auditor’s Report on the Financial Report for the year ended 30th June 2018.
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 nine 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 2019 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
Campbelltown Catholic Club Annual Report 2018
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Business of Annual General Meeting CONTINUED or other duly constituted Committee Meetings, either within the Club or elsewhere - as approved by the Board, on production 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 2019 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
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Displays, Organised Study Tours, Factfinding Tours and other similar events, as may be determined by the Board from time to time. 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 2017. • 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.
Campbelltown Catholic Club Annual Report 2018
Campbelltown Catholic Club
Business of Annual General Meeting CONTINUED 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 2017. • 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 2019.
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 2019.
FIFTH ORDINARY RESOLUTION That pursuant to the Registered Clubs Act the
Campbelltown Catholic Club Annual Report 2018
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 2019.
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 Fifth 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 2019.
NOTES TO MEMBERS ON THE THIRD, FOURTH, FIFTH AND SIXTH ORDINARY RESOLUTIONS: 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.
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Business of Annual General Meeting CONTINUED • 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
SEVENTH ORDINARY RESOLUTION That for the purposes of section 41E of the Registered Clubs Act the members hereby declare the land comprising the Club’s Campbelltown clubhouse (being its licensed premises) and the adjoining driveway and car parking facilities to be core property of the Club.
EIGHTH ORDINARY RESOLUTION That for the purposes of section 41E of the Registered Clubs Act the members hereby declare the land comprising the Club’s Glen Alpine clubhouse (being its licensed premises) and the adjoining golf course to be core property of the Club.
NINTH ORDINARY RESOLUTION That for the purposes of section 41E of the Registered Clubs Act the members hereby declare the Club’s land comprising: • the hotel known as “Rydges Campbelltown”, • the building known as “Aquafit Health Fitness Wellbeing”, • the heritage listed building known as “Quondong”, • the vacant land identified as “Vacant” on the
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attached site plan, and • the property known as 316 Queen Street Campbelltown (adjacent to McDonalds) formerly known as Fishers Ghost Restaurant, to be non-core property of the Club.
NOTES TO MEMBERS ON SEVENTH, EIGHTH AND NINTH ORDINARY RESOLUTIONS: • The Seventh Ordinary Resolution and the Eighth Ordinary Resolution each declare various parcels of Club land described in those resolutions as being core property of the Club. • The Ninth Ordinary Resolution declares other parcels of Club land to be non-core property of the Club. • These resolutions are made pursuant to section 41E of the Registered Clubs Act which replaces and effectively repeats what was once section 41J of the Registered Clubs Act. • Section 41E divides land owned or occupied by the Club as being either core property or non-core property. • The difference between core property and non-core property is that section 41E prohibits the Club disposing of any core property unless: a. the property has been valued by a qualified valuer; and b. the disposal has been approved at a general meeting of the ordinary members of the Club at which a majority of the votes cast supported the approval; and c. any sale is by way of public auction or open tender conducted by an independent real estate agent or auctioneer. • Non-core property can be disposed of by the
Campbelltown Catholic Club Annual Report 2018
Business of Annual General Meeting CONTINUED Club in any way and on such terms as may be determined by the Board without having to refer to the members. • A disposal for the purposes of section 41E means a sale, lease or licence or otherwise a dealing with the property as may be prescribed by the Regulations. • Under the Regulations to the Registered Clubs Act there are a number of exceptions to these requirements but they do not affect the allocation of a club’s land between core and non-core property. • Section 41E defines core property as being any land owned or occupied by the club comprising: a. the licensed premises of the club; b. any facility provided by the club for the use of its members and their guests eg. the car parking facility; c. any other property declared by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club to be core property of the club. • However, section 41E also goes on to provide that the members of a club may by a resolution passed by a majority of the members present at a general meeting declare any land of the club to be non-core property of the club. • The Club’s licensed premises is core property of the Club but the title to the land on which the licensed premises are situated has in recent times, been consolidated with other titles including titles to Rydges Hotel, Aquafit, Quondong and the vacant block of land. This creates some uncertainty as to whether or not those properties are or are not core property. • Accordingly, so that there is certainty for the future for the Board and for the members, the Board has decided to submit each of
Campbelltown Catholic Club Annual Report 2018
the Seventh, Eighth and Ninth Ordinary Resolutions to clarify what is or is not core or non-core property of the Club. • Attached to this Notice is a plan of the Club’s Campbelltown site showing what is proposed to be the core and non-core areas pursuant to the Seventh and Ninth Ordinary Resolutions. Also satellite images will be displayed at the meeting showing the proposed core and noncore property at Campbelltown and at Glen Alpine. • 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. • The Board of the Club unanimously recommend that members vote in favour of each of the Seventh, Eighth and Ninth Ordinary Resolutions.
5. LIFE MEMBERSHIP To consider and if thought fit pass the following Resolution:
RESOLUTION That the members hereby confer Life Membership on David James Olsson (member number 3072)
NOTES TO MEMBERS • David James Olsson (member number 3072) has rendered long and meritorious service to the Club and the Board of Directors consider that it would be a fitting tribute if Life Membership were conferred on him.
21
Business of Annual General Meeting CONTINUED • David has been a member of the Club since October 1979. • David first joined the Board of Directors in 2000 and was appointed as President of the Club in April 2005, a position held continuously since that date. • David has made a significant contribution to the Club, having a very strong influence on corporate governance and the strategic direction of the Club during his time as a Director. • The Board has approved the nomination for Life Membership. • 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.
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: 27 August 2018
Michael Lavorato Chief Executive Officer
22
Campbelltown Catholic Club Annual Report 2018
Campbelltown Catholic Club Annual Report 2018
EXISTING PARKING
HOTEL PLAZA
[Client]
[Project]
ROAD
CAMPBELLTOWN CATHOLIC CLUB
RYDGES CAMPBELLTOWN HOTEL EXPANSION
EXISTING AQUAFIT
OLD MENANGLE
EXISTING CARPARK
D OA YR ER LL A TG AR
AD RO [Scale]
0
10
15
25 m
1 : 500 @ A1
5
20
KOSHIGAYA PARK
CAMPBELLTOWN ART GALLERY
EXISTING PRIVATE RESIDENCE
AD RO
EXISTING RYDGES HOTEL
'QUONDONG' (HERITAGE BUILDING)
EXISTING CARPARK
EN MD CA
EXISTING 'THE CUBE' CONVENTION AND ENTERTAINMENT CENTRE
EXISTING CATHOLIC CLUB
EN MD CA
NARELLEN ROAD
NARELLEN ROA D
Level One, One Chifley Square Sydney NSW 2000 Australia www.scottcarver.com.au +61 2 9957 3988
PROPOSED HOTEL EXPANSION
ROAD
ROAD AR ROAD KELLOC
AR ROAD KELLOC
Vacant
23
EMILY COTTAGE
[Ref]
20150055
90% TENDER REVIEW TENDER SUBMISSION ISSUED FOR CONSTRUCTION
E F 1
24.07.2017
21.03.2017
08.03.2017
[Date]
History
MEINHARDT ARUP HARON ROBSON ARUP
LANDSCAPE ARCHITECT : STRUCTURAL : MECHANICAL : ELECTRICAL : HYDRAULIC :
[Dwg No]
AD-CD006
[Rev]
1
SITE PLAN
REFER TO SHEET AS-CD001 FOR FULL CONSULTANT COMPANY CONTACT INFORMATION; GENERAL NOTES, LEGENDS AND CODES
SCOTT CARVER PTY LTD SCOTT CARVER PTY LTD
ARCHITECT :
Non-core
Core
[Description]
[Rev#]
25/7/17 1:27:16 PM
20150055-AB-CD01.rvt
[File]
[Print Date]
FOR CONSTRUCTION Doug Southwell /7362
[Status]
[Nom. Architect]
Non-core
24
Campbelltown Catholic Club Annual Report 2018
Directors Report THE DIRECTORS SUBMIT THEIR REPORT ON CAMPBELLTOWN CATHOLIC CLUB LIMITED (THE “CLUB”) FOR THE YEAR ENDED 30 JUNE 2018. 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
27
34
Mary Ellen Bland, GAICD Retired School Teacher Director from 2003
29
32
Stephen Wayne Carter, JP Company Director Director from 2002 Board Secretary from 2003
21
30
David Michael McDonald, CPA General Manager Director from 2002 Treasurer from 2005
30
35
Alan Anthony Scott Retired Director from 1988
27
30
Leo John Delissen Retired Director from 2005
32
35
Peter James Meadows, MBA Company Director Director from 2011
19
24
Peter Joseph Crittenden, Dip Law (SAB) Lawyer Director from 2015
19
21
Andrew James Stapleton General Manager Director from 2016
17
25
* Number of meetings held during the time the director held office during the year.
Campbelltown Catholic Club Annual Report 2018
25
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. There have been no significant changes in the nature of these activities during the year.
DIVIDENDS The Club is prohibited from paying dividends by its Constitution.
• Diversification of business to reduce the Club’s reliance on gaming revenue • Capital investment in all facilities to ensure they continue to meet member expectations • Growth in revenues through an expansion of our business and offerings
MEASUREMENT OF PERFORMANCE The Club measures financial and operational performance using the following key indicators: • Trading performance to budget
OPERATING RESULTS FOR THE YEAR The net profit after tax of the Club for year ended 30 June 2018 was $4,511,083 (2017: $4,782,878).
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 high quality 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
• 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 Subsequent to year end, the following property was acquired: 316 Queen Street Campbelltown
• High level of financial support for community organisations in accordance with the Club’s Charter
26
Campbelltown Catholic Club Annual Report 2018
Directors Report CONTINUED
Contracts were exchanged on this property on 18 July 2018 and settlement is scheduled to take place on 5 September 2018. The purchase price is $3,300,000. There have been no other 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.
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.
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’S INDEPENDENCE DECLARATION The Directors have received a declaration from the auditor of Campbelltown Catholic Club Limited. This has been included on page 4. Signed in accordance with a resolution of the Directors.
David James Olsson Director 27 August 2018
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.
David Michael McDonald Director 27 August 2018
DIRECTORS’ REMUNERATION No director of the company has, since the end of
Campbelltown Catholic Club Annual Report 2018
27
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 2018, 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 27 August 2018
28
Campbelltown Catholic Club Annual Report 2018
Statement of profit or loss and other comprehensive income FOR THE YEAR ENDED 30 JUNE 2018
NOTES
2018 - $
2017 - $
Sale of goods and services
4.1
65,377,813
65,810,042
Other income
4.2
108,060
50,772
Cost of goods sold
(5,675,041)
(6,177,405)
Poker machine revenue taxes
(9,823,805)
(9,617,338)
Employee benefit expenses
4.4
(19,978,067)
(20,274,091)
Depreciation expense
10
(7,778,777)
(7,917,034)
Donations
(1,425,824)
(1,366,782)
Marketing and promotions
(4,159,101)
(3,866,102)
Repairs and maintenance
(2,141,925)
(2,004,920)
Utilities
(2,249,504)
(2,104,913)
Cleaning
(1,172,484)
(1,216,380)
(541,700)
(610,562)
(6,028,562)
(5,922,409)
4,511,083
4,782,878
-
-
4,511,083
4,782,878
-
-
4,511,083
4,782,878
Finance costs
4.3
Other expenses Profit before income tax 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.
Campbelltown Catholic Club Annual Report 2018
29
Statement Of Financial Position FOR THE YEAR ENDED 30 JUNE 2018
NOTES
2018 - $
2017 - $
Cash
6
2,220,605
6,821,596
Trade and other receivables
7
666,983
426,946
Inventories
8
304,997
398,677
Other assets
9
375,324
312,975
3,567,909
7,960,194
ASSETS Current assets
Total current assets Non-current assets Property, plant and equipment
10
124,651,426
115,533,052
Intangible assets
11
4,852,044
4,852,044
Total non-current assets
129,503,470
120,385,096
Total assets
133,071,379
128,345,290
Liabilities Current liabilities Trade and other payables
12
5,194,722
4,951,441
Interest-bearing loans and borrowings
13
35,923
230,530
Provisions
14
2,689,556
2,675,019
7,920,201
7,856,990
Total current liabilities Non-current liabilities Trade and other payables
12
1,416
5,402
Interest-bearing loans and borrowings
13
12,097,587
12,000,000
Provisions
14
521,651
463,457
Total non-current liabilities
12,620,654
12,468,859
Total liabilities
20,540,855
20,325,849
112,530,524
108,019,441
112,530,524
108,019,441
112,530,524
108,019,441
Net assets Members' equity Retained earnings Total members' equity
The above statement of financial position should be read in conjunction with the accompanying notes.
30
Campbelltown Catholic Club Annual Report 2018
Statement of changes in members equity AS AT 30 JUNE 2018
Retained Earnings - $ Total Members’ Equity - $ As at 1 July 2016
103,236,563
103,236,563
Profit for the year
4,782,878
4,782,878
-
-
4,782,878
4,782,878
At 30 June 2017
108,019,441
108,019,441
As at 1 July 2017
108,019,441
108,019,441
4,511,083
4,511,083
-
-
4,511,083
4,511,083
112,530,524
112,530,524
Other comprehensive income Total comprehensive income for the year
Profit for the year Other comprehensive income Total comprehensive income for the year At 30 June 2018
The above statement of financial position should be read in conjunction with the accompanying notes.
Campbelltown Catholic Club Annual Report 2018
31
Statements of cash flow FOR THE YEAR ENDED 30 JUNE 2018
NOTES
2018 - $
2017 - $
71,613,208
72,538,856
(58,516,557)
(58,534,709)
35,025
23,113
(541,700)
(610,562)
12,589,976
13,416,698
147,814
55,000
(17,093,775)
(6,031,375)
(16,945,961)
(5,976,375)
(245,006)
(239,294)
-
(2,500,000)
Net cash flows used in financing activities
(245,006)
(2,739,294)
Net (decrease)/increase in cash and cash equivalents
(4,600,991)
4,701,029
6,821,596
2,120,567
2,220,605
6,821,596
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
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
Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June
6
The above statement of cash flows should be read in conjunction with the accompanying notes.
32
Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
1. CORPORATE INFORMATION The financial statements of Campbelltown Catholic Club Limited (the “Club”) for the year ended 30 June 2018 were authorised for issue in accordance with a resolution of the Directors on 27 August 2018. Campbelltown Catholic Club Limited is a Club limited by guarantee with each member of the Club liable to contribute an amount not exceeding $2.00 in the event of the Club being wound up. The nature of the operations and principal activities of the Club are described in the Directors’ report.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 2.1 Basis of preparation Statement of compliance The financial report is a general purposes financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards - Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except where stated. Accounting policies adopted by the Club are consistent with those of the previous year, unless otherwise stated. The financial report is presented in Australian dollars ($). 2.2 Changes in accounting policies, disclosures, standards and interpretations New and amended standards and interpretations The new and amended Australian Accounting Standards and AASB Interpretations that apply for the first time in 2017/2018 do not
Campbelltown Catholic Club Annual Report 2018
materially impact the financial statements of the Club. 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 year ended 30 June 2018. The Directors have not early adopted any of these new or amended standards or interpretations. The Directors are in the process of assessing the impact of the applications of AASB 9 Financial Instruments (effective 1 January 2018), AASB 15 Revenue from Contracts with Customers (effective 1 January 2018), and AASB 16 Leases (effective 1 January 2019) and its amendments to the extent relevant to the financial statements of the Club. a. Going concern The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. At 30 June 2018, the Club’s total current liabilities exceeded total current assets by $4,352,292 (2017: total current assets exceeded total current liabilities by $103,204). Given that significant positive cash flows from operations are being generated and the Club has significant financing activities available, the directors have concluded that the use of the going concern assumption in the preparation of this year’s financial report is appropriate. The Company has a commercial bill facility of $25,000,000 (2017: $25,000,000) which matures on 19 December 2018. Prior to the end of the financial year, the Company
33
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) received a letter of offer from its bankers offering the provision of a $25,000,000 commercial bill facility and a $1,000,000 overdraft facility to expire in December 2021. At the completion of due diligence by the Board of Directors, and prior to December 2018, the Company will sign a letter of offer for an appropriate level of borrowings to meet the Company’s future requirements. b. 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
c. 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. d. 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.
• Held primarily for the purpose of trading
e. Inventories
• Expected to be realised within twelve months after the reporting period, or
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition.
• 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. 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
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. f. Property, plant and equipment 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
The Club classifies all other liabilities as noncurrent.
34
Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
in circumstances indicate that the carrying amount may not be recoverable.
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.
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.
Land is stated at cost. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
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.
Land
Not Depreciated
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 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. g. Impairment Non-financial assets, other than goodwill and indefinite life intangibles, are tested for impairment whenever events or changes
Campbelltown Catholic Club Annual Report 2018
h. 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.
35
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) i. Trade and other payables Trade and other payables are carried at amortised cost and due to their short-term 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. j. 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 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. k. 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. l. Leases The determination of whether an arrangement is (or contains) a lease is
36
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 the statement of profit or loss and other comprehensive income on a straight-line basis over the lease term. m. 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. n. 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
Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 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. o. 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.
Campbelltown Catholic Club Annual Report 2018
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. The Club offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.
37
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 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
38
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 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 Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS 4.1 SALES OF GOODS AND SERVICES
2018 - $
2017 - $
38,666,299
37,884,214
Liquor revenue
5,021,583
4,976,313
Catering revenue
7,699,746
7,818,610
Aquafit revenue
3,856,932
3,787,103
Rydges revenue
7,545,133
8,991,323
Golf course revenue
862,529
765,328
Entertainment receipts
542,484
384,613
Subscriptions
672,521
658,137
Commissions
345,451
365,734
Room and equipment hire
153,726
172,125
11,409
6,542
65,377,813
65,810,042
Gain on disposal of assets
73,035
27,659
Interest income
35,025
23,113
108,060
50,772
532,295
591,085
9,405
19,477
541,700
610,562
17,600,928
17,844,442
1,398,514
1,400,526
963,214
976,182
15,411
52,941
19,978,067
20,274,091
Gaming revenue
Other income 4.2 OTHER INCOME
4.3 FINANCE COSTS Interest expense - bank Interest expense - hire purchase liabilities 4.4 EMPLOYEE BENEFITS EXPENSE Wages and salaries Superannuation Payroll tax Fringe benefits tax
Campbelltown Catholic Club Annual Report 2018
39
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
5. INCOME TAX The major components of income tax expense for the years ended 30 June 2018 and 2017 are: 2018 - $
2017 - $
-
180,621
Utilisation of carried forward tax losses
-
(180,621)
Income tax expense reported in the statement of profit or loss and other comprehensive income
-
-
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Current income tax: Current income tax charge Deferred tax:
Reconciliation of tax expense and the accounting profit multiplied by Australia’s domestic tax rate for 2017 and 2018:
ACCOUNTING PROFIT BEFORE INCOME TAX Accounting profit before income tax
At Club's statutory income tax rate of 30% (2017: 30%) Member only income Member only expenses Effect of mutuality Utilisation of tax losses Other items (net) Income tax expense
4,511,083
4,782,878
1,353,325
1,434,863
(1,318,405)
(1,356,427)
1,403,552
1,333,572
(1,657,371)
(1,612,466)
-
(180,621)
218,899
381,079
-
-
At 2018, the Club had accumulated taxable losses with a future income tax benefit of $579,155 (2017: $475,621) 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.
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Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
6. CASH Cash at bank and on hand
2018 - $
2017 - $
2,220,605
6,821,596
199,714
71,663
(1,750)
(1,750)
197,964
69,913
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 Trade receivables Allowance for doubtful accounts Other receivables
469,019 357,033 666,983
426,946
240,232
291,453
64,765
107,224
304,997
398,677
361,324
298,975
14,000
14,000
375,324
312,975
8. INVENTORIES Current Liquor stock - at cost Catering stock - at cost
9. OTHER ASSETS Current Prepayments Security deposits
Campbelltown Catholic Club Annual Report 2018
41
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
10. PROPERTY, PLANT AND EQUIPMENT 2018 - $
2017 - $
3,100,343
3,100,343
At cost
138,884,963
138,837,570
Accumulated depreciation
(42,210,684)
(38,701,414)
96,674,279
100,136,156
13,676,046
1,276,787
27,947,417
26,860,562
(17,880,669)
(17,005,573)
10,066,748
9,854,989
92,947
92,947
Freehold land At cost Buildings
Net carrying amount Capital work in progress At cost Plant and equipment At cost Accumulated depreciation Net carrying amount Motor vehicles At cost Accumulated depreciation
(63,484) (46,470) 29,463
46,477
At cost
1,392,404
1,291,218
Accumulated depreciation
(597,459) (473,929)
Net carrying amount Course improvements
Net carrying amount
794,945
817,289
At cost
1,006,154
817,518
Accumulated depreciation
(696,552) (516,507)
Leased plant and equipment
Net carrying amount
309,602
301,011
At cost
186,100,274
172,276,945
Accumulated depreciation
(61,448,848)
(56,743,893)
Net carrying amount
124,651,426
115,533,052
Total property, plant and equipment
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Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
RECONCILIATION OF CARRYING AMOUNTS AT THE BEGINNING AND THE END OF THE YEAR
2018 - $
Freehold land At 1 July Net book value at 30 June
3,100,343 3,100,343
Buildings At 1 July Additions
100,136,156 47,393
Depreciation charge for the year
(3,509,270)
Net book value at 30 June
96,674,279
Capital work in progress At 1 July Additions Costs written off Transfer from work in progress Net book value at 30 June
1,276,787 12,547,654 (121,845) (26,550) 13,676,046
Plant and equipment At 1 July
9,854,989
Additions
4,208,906
Transfer from work in progress Disposals
26,550 (74,779)
Depreciation charge for the year
(3,948,918)
Net book value at 30 June
10,066,748
Motor vehicles At 1 July Depreciation charge for the year Net book value at 30 June
46,477 (17,014) 29,463
Course improvements At 1 July
817,289
Additions Depreciation charge for the year
101,186
Net book value at 30 June
Campbelltown Catholic Club Annual Report 2018
(123,530) 794,945
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Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
10. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
2018-$
Leased plant and equipment At 1 July
301,011
Additions
188,636
Depreciation charge for the year Net book value at 30 June
(180,045) 309,602
Total property, plant and equipment At 1 July
115,533,052
Additions
17,093,775
Disposals
(74,779)
Costs written off Depreciation charge for the year Net book value at 30 June
(121,845) (7,778,777) 124,651,426
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.
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Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
Valuations The Club’s land, buildings and plant and equipment and Club’s Golf Course leasehold land improvements, buildings and plant and equipment were valued by Global Valuation Services. These valuations were based upon the fair values in an open market of assets held at that time and were as follows: Valuation Date
2018-$
Club Land
22 February 2018
22,900,000
Buildings
22 February 2018
118,725,000
Plant and equipment
22 February 2018
16,393,345
28 February 2018
4,400,000
28 February 2018
1,373,715
Club’s Golf Course
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 2018 - $
2017 - $
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 lives. 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.
Campbelltown Catholic Club Annual Report 2018
45
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
12. TRADE AND OTHER PAYABLES 2018 - $
2017 - $
2,262,710 2,349,107
1,924,194 2,472,121
Current Trade payables Other payables and accrued expenses Deferred revenue Staff deposits*
531,519 484,487 51,386
70,639
5,194,722
4,951,441
1,416
5,402
Non-current Deferred revenue
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 2018.
13. INTEREST-BEARING LOANS AND BORROWINGS Current Hire purchase liability
35,923
230,530
12,000,000 97,587
14,500,000
12,097,587
12,000,000
Non-current Commercial bills Hire purchase liability
-
Terms and conditions
The commercial bill facility of $25,000,000 (2017: $25,000,000) is a fixed term facility maturing in 19 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 (2017: $12,000,000) at rates prevailing at the time of roll-over. At 30 June 2018, the average implicit interest rate on the outstanding commercial bills was 2.13% (2017: 2.32%). Hire purchase agreements have remaining terms ranging from 0.5 to 3.5 years and an average implicit discount rate of 4.73% (2017: 5.48%). 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 (2017: $1,000,000). This facility has not been drawn in the current financial year. Prior to the end of the financial year, the Company received a letter of offer from its bankers offering the provision of a $25,000,000 commercial bill facility and a $1,000,000 overdraft facility to expire in December 2021. As at the end of the financial year, this letter of offer had not been signed by either party. At the completion of due diligence by the Board of Directors, and prior to December 2018, the Company will sign a letter of offer for an appropriate level of borrowings to meet the Company’s requirements.
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Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
14. PROVISIONS 2018 - $
2017 - $
2,689,556
2,675,019
521,651
463,457
Current Employee entitlements Non-current Employee entitlements
15. COMMITMENTS AND CONTINGENCIES 15.1 OPERATING LEASE COMMITMENTS Future minimum rentals payable under non-cancellable operating leases as at 30 June 2018 are, as follows: Within one year
19,592
26,696
After one year but not more than five years
71,920 15,681
Total minimum lease payable
91,512
42,377
Within one year
41,466
237,134
After one year but not more than two years
41,466
-
After one year but not more than five years
62,199 -
15.2 HIRE PURCHASE CONTRACTS
Total minimum lease payments
145,131
237,134
Future finance charges
(11,619) (6,604)
Hire purchase liability
133,512
230,530
Comprises: Current liability Non-current liability
230,530 35,923 97,589 133,512
230,530
15.3 CAPITAL COMMITMENTS Capital expenditure of $5,632,887 (2017: $817,830) has been contracted at balance date but not provided in the financial statements.
Campbelltown Catholic Club Annual Report 2018
47
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
15.4 CONTINGENT LIABILITIES There were no contingencies as at the reporting date (2017: $nil).
16. CORE AND NON-CORE PROPERTY Core property All of the land at Camden Road Campbelltown NSW on the one title comprising the Club’s licensed premises and car parking. All of the land at Golf Course Road Glen Alpine NSW comprising Campbelltown Golf Club clubhouse, car parking and golf course. Non-core property The Hotel (known as Rydges Campbelltown), the fitness centre (known as Aquafit), the heritage listed building (known as Quondong) and the vacant block of land on Old Menangle Road, being facilities on the same title as the core property at Campbelltown NSW but which cannot be disposed of as being non-core property unless severed from the title by way of subdivision.
17. RELATED PARTY INFORMATION 17.1 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. 17.2 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: 2018 - $
2017 - $
84,855
58,291
The above remuneration relates to honorariums paid to the directors during the year. 17.3 DIRECTORS’ EXPENSES
Expenses incurred by directors
14,013
34,807
17.4 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.
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Campbelltown Catholic Club Annual Report 2018
Notes to financial statements FOR THE YEAR ENDED 30 JUNE 2018
18. 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 Aquafit General Manager People & Culture Director of Culinary Development General Manager Rydges KEY MANAGEMENT PERSONNEL COMPENSATION Short-term Post-employment
2018 - $
2017 - $
1,774,130
1,603,387
134,656 136,309 1,908,786
1,739,696
19. EVENTS AFTER THE REPORTING PERIOD Subsequent to year end, the following property was acquired: 316 Queen Street Campbelltown Contracts were exchanged on this property on 18 July 2018 and settlement is scheduled to take place on 5 September 2018. The purchase price is $3,300,000. There have been no other 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.
In accordance with a resolution of the Directors of Campbelltown Catholic Club Limited, we state that:
Campbelltown Catholic Club Annual Report 2018
49
Directors Declaration
In the opinion of the Directors: (a) the financial statements and notes of Campbelltown Catholic Club Limited for the financial year ended 30 June 2018 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 2018 and of its performance for the year ended on that date; and
(i)
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 James Olsson Director 27 August 2018
David Michael McDonald Director 27 August 2018
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Campbelltown Catholic Club Annual Report 2018
Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
ey.com/au
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Independent Auditor's Report to the Members of Campbelltown 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 Independent the Members of for Campbelltown income, statementAuditor's of changes inReport equity andto statement of cash flows the year then ended, notes to the financial Club statements, including a summary of significant accounting policies, and the directors' Catholic Limited declaration.
Opinion
In opinion, thethe accompanying financial report of theCatholic Company is inLimited accordance with the which Weour have audited financial report of Campbelltown Club (the Company), Corporations 2001, including: comprises theAct statement of financial position as at 30 June 2018, the statement of comprehensive
income, statement of changes in equity and statement of cash flows for the year then ended, notes to a) giving astatements, true and fairincluding view of the Company's financial position as atpolicies, 30 Juneand 2017 of its the financial a summary of significant accounting theand directors' financial performance for the year ended on that date; and declaration.
b) complying Australian financial Accounting Standards – Reduced Requirements and the In our opinion, thewith accompanying report of the Company is inDisclosure accordance with the Corporations Corporations Regulations 2001. Act 2001, including:
Basis for Opinion a) giving a true and fair view of the Company's financial position as at 30 June 2018 and of its
financial our performance for the yearwith ended on that date; andStandards. Our responsibilities under We conducted audit in accordance Australian Auditing those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial b) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Report section of our report. We are independent of the Company in accordance with the auditor Corporations Regulations 2001. independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Basis for Opinion Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also We conducted ourethical audit inresponsibilities accordance with Australian Auditing Our responsibilities under fulfilled our other in accordance with theStandards. Code. those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section report. We are independent Company accordancetowith the aauditor We believe that of theour audit evidence we have obtainedofisthe sufficient andin appropriate provide basis independence requirements of the Corporations Act 2001 and the ethical requirements of the for our opinion. Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) thatthe areFinancial relevant toReport our audit of Auditor’s the financial report Thereon in Australia. We have also Information Other than and Report fulfilled our other ethical responsibilities in accordance with the Code.
The directors are responsible for the other information. The other information comprises the We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for information included in the annual report, but does not include the financial report and our auditor’s our opinion. 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.
Information Other than the Financial Report and Auditor’s Report Thereon
In connection with our audit of the financial report, our responsibility is to read the other information The directors are responsible for the other information. The other information comprises the and, in doing so, consider whether the other information is materially inconsistent with the financial information included in the annual report, but does not include the financial report and our auditor’s report or our knowledge obtained in the audit or otherwise appears to be materially misstated. 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. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
Campbelltown Catholic Club Annual Report 2018 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
51
Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Responsibilities of the DirectorsAct for2001 the Financial Report Requirements and the Corporations and for such internal control as the directors determine directors the Company are responsible for thereport preparation of the financial report isThe necessary toof enable the preparation of the financial that gives a true and fair viewthat and gives is freea true material and fairmisstatement, view in accordance withtoAustralian Accounting Standards – Reduced Disclosure from whether due fraud or error. Requirements and the Corporations Act 2001 and for such internal control as the directors determine In financial the directors are responsible forgives assessing ability to is preparing necessarythe to enable thereport, preparation of the financial report that a truethe andCompany’s fair view and is free continue as a going concern, disclosing, as to applicable, matters relating to going concern and using the from material misstatement, whether due fraud or error. going concern basis of accounting unless the directors either intend to liquidate the Company or to In preparing the financial report, thealternative directors are cease operations, or have no realistic butresponsible to do so. for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes Auditor's for the theofFinancial Report our opinion.Responsibilities Reasonable assurance is Audit a high of level assurance, but is not a guarantee that an audit Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free conducted in accordance with the Australian Auditing Standards will always detect a material from materialwhen misstatement, whether due to can fraud or error, toor issue an and auditor’s report thatmaterial includes misstatement it exists. Misstatements arise from and fraud error are considered ourindividually opinion. Reasonable assurance isthey a high level of assurance, but is nottoa influence guaranteethe that an audit if, or in the aggregate, could reasonably be expected economic conducted in accordance with theofAustralian Auditing decisions of users taken on the basis this financial report. Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material As of an audit accordance with thecould Australian Auditing exercisethe professional if, part individually or ininthe aggregate, they reasonably be Standards, expected toweinfluence economic judgment maintain professional throughout the audit. We also: decisionsand of users taken on the basisscepticism of this financial report. As part Identify assess the risks of material misstatement of the financialwe report, whether due to of an and audit in accordance with the Australian Auditing Standards, exercise professional fraud or error, design and perform audit procedures responsive to those risks, and obtain audit judgment and maintain professional scepticism throughout the audit. We also: evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material resultingmisstatement from fraud is higher for one resulting from error, Identify and assessmisstatement the risks of material of thethan financial report, whether due to as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or audit the fraud or error, design and perform audit procedures responsive to those risks, and obtain override of internal control. evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, Obtain an may understanding of internal control relevant to the auditmisrepresentations, in order to design or audit as fraud involve collusion, forgery, intentional omissions, the procedures are control. appropriate in the circumstances, but not for the purpose of expressing an override of that internal opinion on the effectiveness of the Company’s internal control. Obtain an understanding of internal control relevant to the audit in order to design audit Evaluate the that appropriateness of accounting policies used and accounting procedures are appropriate in the circumstances, but notthe forreasonableness the purpose of of expressing an estimates disclosures made by the directors. opinion onand therelated effectiveness of the Company’s internal control.
Conclude appropriateness of the directors’ useused of the concern basis of Evaluate on thethe appropriateness of accounting policies andgoing the reasonableness ofaccounting accounting and, basedand on related the audit evidencemade obtained, a material uncertainty exists related to estimates disclosures by thewhether directors. events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that aofmaterial uncertainty exists, we are required to draw attention Conclude on the appropriateness the directors’ use of the going concern basis of accounting inand, our based auditor’s report to the related disclosures in the financial report or, if such disclosures on the audit evidence obtained, whether a material uncertainty exists relatedare to inadequate, to modify that our opinion. conclusions areon based on the auditability evidence obtainedas upa events or conditions may castOur significant doubt the Company’s to continue to the date of our auditor’s report. eventsexists, or conditions may cause the Company going concern. If we conclude that However, a materialfuture uncertainty we are required to draw attention to cease to continue as a going concern. in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
52
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
Campbelltown Catholic Club Annual Report 2018

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Ernst & Young
Daniel Cunningham Partner Sydney 27 August 2018
Campbelltown Catholic Club Annual Report 2018
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