2O17 PDRLFC ANNUAL REPORT
ANNUAL REPORT 2017 • 1
CONTENTS REPORTS & REVIEWS Season Sponsors
4
Life Members
5
Executive General Manager’s Report
7
Rugby League Development Report
8
ANNUAL FINANCIAL REPORT Board of Directors
1O
Directors’ Report
12
Auditor’s Independence Declaration
15
Statement of Profit or Loss and Other Comprehensive Income
16
Statement of Financial Position
17
Statement of Changes in Equity
18
Statement of Cash Flows
19
Notes to the Financial Statements
20
Directors’ Declaration
34
Independent Auditor’s Report
35
CORPORATE INFORMATION
DIRECTORS
ACN 003 908 503
D. O’Neill
Registered Office Mulgoa Road, Penrith NSW 2750
G. Alexander P. Graham
Company Secretary B. Fletcher
I. Hicks
Bankers ANZ
M. Mulock
Auditors Ernst & Young
D. Merrick FCPA JP
D. Mayne
ANNUAL REPORT 2017 • 3
SEASON SPONSORS Major Sponsor
Sleeve Sponsor
Stadium Naming Rights Sponsor
Shorts Sponsors
Lower Back Sponsor
Apparel Sponsor
Legal Sponsor
Executive Sponsors
Major Sponsors of Panthers on the Prowl
Sponsor of Junior League
4 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
LIFE MEMBERS Prior to 1966
Keith Dobson •
1989
Ron Mulock AO •
Herbert Dengate •
1989
Bruce Welladsen •
Bill Johnston •
1989
Don Courts
Harry Richardson •
1991
Leo Armstrong •
David Fitzgerald •
1992
Vern Mychael •
Gordon Roberts •
1992
Royce Simmons
Rocky Davis •
1994
Donald Ellks
Alf Maiden •
1994
Raymond Wiggins
1954
Jack Reddan •
1995
Terry Heidtmann •
1955
Merv Cartwright •
1995
Don Feltis OAM
1963
Noel East •
1996
Geoffrey James •
1964
Ken Ausburn •
1996
John Farragher OAM
1964
Norrie Brown •
1997
Leigh Mawhood •
1964
Edward Cullen •
1998
John Cartwright
1974
Tom O’Connor •
2001
Gregory Peter Alexander
1976
Max Connors •
2002
Harry John Kelly (Mick) •
1976
Lou Brown •
2002
Ross Henry Sinclair
1976
Ron Partridge •
2004
William Asher (Bill) •
1977
Murray Clarke •
2006
Terence Hancock
1977
Jock McKechnie •
2006
Patrick Lawford •
1979
Roger Cowan OAM •
2007
Tony Ferguson
1979
Harry Slaughter
2008
Arthur Riley
1980
John Hewett •
2009
Lou Zivanovic
1980
Tim Sheens
2011
Norm Southern
1980
Frederick Cunliffe OAM
2012
Michael Leary
1981
Leo Trevena •
2013
Brad Waugh
1983
Barry Hubbard
2013
Sue McNeill
1984
Walter Ward (Wally) •
2014
Alan Mair
1984
Keith French
2014
Brad Izzard
1984
Jack Harris
2014
Steve Carter
1985
William George McKillop Davies •
2015
John Hiatt OAM
1985
Norman Hancock •
2015
Ken Wolffe
1986
Keith Rhind OAM
2015
Phil Gould AM
1987
Moyston May •
2017
Carl Macnamara
1987
Barry Walsh OAM
2017
Ryan Girdler
1988
Len Manuel • ANNUAL REPORT 2017 • 5
6 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
EXECUTIVE GENERAL MANAGER’S REPORT people stands our club head and shoulders above all other NRL clubs. They are simply second to none. I say this every year, but we must always be reminded that none of this would be possible for Panthers rugby league without the support of the Panthers Board of Directors. Our club is blessed to have a great association with many corporate partners and sponsors who support our football program. However, it should never be forgotten that Panthers Group is by far the major financial contributor to our rugby league club. Chairman Dave O’Neill and his fellow board members are passionate about the Panthers club and in particular the propagation of rugby league in this wonderful area. We thank them for their ongoing support.
2018 represented another highly successful season for our Panthers rugby league program. Our SG Ball, National Youth Competition, Intrust Super Premiership NSW and NRL teams all qualified for finals football in their respective competitions.
To Panthers Group CEO Brian Fletcher and his wonderful staff in the hospitality side of the business, we sincerely thank you all for your amazing support. The success of Panthers Group is a major asset to the Panthers rugby league program. We in turn hope that the Panthers rugby league program is seen as a major asset to both Panthers Group and to the Penrith community. It’s an exciting time ahead for Panthers and Panthers Group. I believe in 2018 we will see a continuation of our growth and achievements.
The SG Ball and National Youth Competition sides both finished in the top four. The Intrust Super Premiership NSW side won their competition with a strong victory over the Sydney Roosters feeder team Wyong in the Grand Final, before defeating the winners of the Queensland Cup competition to claim the National Championship. It was a tremendous performance from such a young team.
Phil Gould AM Executive General Manager Rugby League
The NRL team qualified for finals football for the third time in just four seasons. They enjoyed a strong win over Manly on the first weekend of the playoffs, before being narrowly beaten by the Brisbane Broncos in week two of the finals. Congratulations must go to our dedicated and hard-working players who represent our club impeccably both on and off the field. Congratulations too to our Head Coach Anthony Griffin and his entire coaching team. They continue to lift our club to new levels of performance and professionalism. Special thanks must go to our entire management and administrative teams. The quality of work produced by these passionate and talented ANNUAL REPORT 2017 • 7
RUGBY LEAGUE DEVELOPMENT REPORT JUNIOR LEAGUE Panthers Junior League had another successful season in 2017. A total of 8,092 players participated across 527 teams within the district. This season there was a significant increase in female teams at the junior level as a result of both the NRL and the NSWRL developing a new pathways model that encompasses the women’s game. This season filming of both the junior and senior level games was introduced. Having access to this type of footage has improved player and crowd behaviour at games. It has also allowed the Panthers recruitment and development staff to monitor player progression as they enter representative selection age groups. A special mention needs to be made of the referees at all levels. They have done an outstanding job for our clubs and players and are constantly willing to help educate and encourage both on and off the field. JUNIOR DEVELOPMENT PROGRAMS The club continued its commitment to junior development with its development programs at the under 13’s, 14’s, 15’s and 17’s level. The Cubs program for 13’s and 14’s engages with 80 players in each age group and serves as an entry-level program for players from our junior league. Running during the summer months, the program culminates with the selection of a squad of 25 players that participated against other NRL club teams in the NSWRL Challenge. The under 13’s went through the tournament undefeated and the under 14’s suffered only one loss. At the under 15’s level the club runs a ten week summer program where the players participate in a combination of training and development games. This program finishes with the club sending the two teams to participate in the CRL Easter Challenge, held at Nyngan. This is where the boys play against other regional group teams. We see this as a great opportunity for our players to experience the hospitality and experiences provided by the Country Rugby League, as well as a chance to play a competitive standard of rugby league against their regional counterparts. The boys had a tremendous experience on the 2017 trip and although having mixed results, they were able to represent the club proudly in their endeavours. REGIONAL DEVELOPMENT PROGRAMS The clubs regional development program was again a great success in 2017. It provided the High Performance Department the opportunity to engage with multiple group teams at the 13 to 16 year age groups. Our Bathurst Cubs program allows the club and the game development arm of the CRL, to engage with the group 10 representative teams. These teams have 35 players represented
in each age group. Academy Coach Ben Harden and Academy Strength and Conditioning Coach Sam Jones designed and delivered a comprehensive coaching program for the local coaches to implement. They also spent time with the local coaches in a coach education format. For the first time, the club also ran a country recruitment camp during the July school holidays. With the assistance of NRL regional game development officers, Panthers Recruitment Manager Jim Jones was able to identify 24 players at the under 15 level to travel to Penrith and spend three days training at the Glad Group Panthers Rugby League Academy. Also invited to the camp were regional coaches, allowing the club to continue its commitment to coach education in country areas. The boys undertook a number of activities outside the normal training routine. These included education and welfare talks, delivered by Shane Elford and Kevin Kingston, as well as talks regarding social media and nutrition. The success of this camp has led to the club re-evaluating its programs. In the 2018 season, Panthers will run three regional academies at Red Bend Catholic College Forbes, St Johns College Dubbo and Charles Sturt University Bathurst. This will assist with the coaching of the Western Rams programs. Also for the first time the Panthers will be fielding an under 16’s team and an under 18’s team in the 2018 CRL Country Championships. This initiative will allow Panthers to provide a more productive pathway into representative teams for our development players. It will also continue to build the strong relationship that the club has with Country Rugby League and its regional partners. JUNIOR REPRESENTATIVE COMPETITIONS The 2017 season saw the introduction of the inaugural women’s NSW under 18’s competition, named after Australian women’s representative Tarsha Gale. The club wanted to ensure that the best possible pathway was introduced for females. This ensures a positive introduction to the rugby league experience at a representative level. After a very successful home and away season, the competition format saw the girls playing week to week in sudden death football as they progressed through each round of the semi-final series. It was clear to all that the work coach Robbie Taylor and his staff had put in came to the fore, ultimately pitting them against Canterbury Bulldogs on Grand Final day. Although the Bulldogs were one of the standout teams of the competition, the girls kept their best football for the biggest day of the season and were convincing winners. The introduction of this pathway for women’s rugby league has been a great initiative from the NSWRL and we look forward to it continuing into the future.
8 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
After a tough and productive preseason, the playing group had a bright start to the under 16s Harold Matthews season. As the season progressed, the team went through a number of challenging situations compounded by being on the stronger side of the 18-team draw. We are constantly reminding players and parents at this age that although our programs are important, they do not pre-determine the player’s ability to progress to first grade. During the season we use all 25 players in our squads, with our emphasis being on developing first graders, not winning competitions. As disappointing as it was for both players and staff to miss out on the top eight, our program again delivered the outcomes we set out to achieve as an entry level opportunity for developing players within our system.
it is rewarding to know that in the ten years of the competition, the Panthers twice won the title and had players nominated in the team of the year on multiple occasions.
The Panthers strong tradition in the SG Ball competition continued throughout 2017. The great in-season showing propelled the boys into equal first on the competition ladder after the nine rounds of regular competition. The boys faced Cronulla Sharks in week one of the finals. After giving away a large early lead they couldn’t manage to bridge the gap, going down by a try. This forced them into knockout football in week 2 of the semi-finals where they faced Sydney Roosters. In a great exhibition of free flowing football the boys missed a couple of crucial opportunities, ultimately going down by a try. At the conclusion of the season a number of 18’s players progressed through to the NYC squad with Brad Gaut, Toby Westcott, J’maine Hopgood and Daine Laurie all playing a significant role.
JUNIOR REP HONOURS
NATIONAL YOUTH COMPETITION
PLAYER OF THE YEAR WINNERS Tarsha Gale Cup Player of the Year – Ashley Harrison Harold Matthews Player of the Year – Jye Wynbergen SG Ball Player of the Year – Brad Gaut NYC Player of the Year – Wayde Egan
2017 Junior Kangaroos - Stefano Hala 2017 Junior Kiwis - Jarome Luai 2017 U/20 NSW Origin - Stefano Hala 2017 U/20 QLD Origin -Tom Skinner 2017 U/18 NSW Origin - Lindsay Smith 2017 U/18 QLD Origin - J’maine Hopgood 2017 Australian Schoolboys –– Lindsay Smith –– Spencer Leniu –– Shawn Blore
In its final year as a nationally based competition, the club’s NYC team had another successful season in 2017, progressing all the way through to the grand final qualifier. The team was coached for the first time by David Tangata-Toa. David had a great introduction to coaching at the Panthers after spending a number of years as an NYC and reserve grade assistant coach. The boys had a very consistent year and managed to put a number of back-to-back wins together. These wins put them in great stead for the run into the semi-finals. This in itself is a great reflection of David’s coaching and his staff’s ability to keep a team on the park every week, with three of his top players spending multiple weeks in the club’s ISP reserve grade team. After finishing in the top four, the boys suffered a shattering loss against the Dragons at Allianz Stadium. However they were able to bounce back the following week to travel interstate to Brisbane and convincingly beat the Broncos at Suncorp Stadium. Progressing on to week 3 of the semi-finals and an opportunity to secure a place in the Grand Final, the boys faced a fast-finishing Parramatta Eels. Unfortunately they ultimately came up short, going down in an entertaining game. Although it is disappointing that the national format of the NYC competition will not continue in 2018,
ANNUAL REPORT 2017 • 9
BOARD OF DIRECTORS
DAVID O’NEILL, CHAIRMAN CHAIRMAN FOR 1 YEAR | DIRECTOR FOR 5 YEARS Director of ABCOE Distributors, Penrith. Chairman of Panthers on the Prowl. As a passionate Panthers supporter, he would like to repay Panthers with his time and energy in focusing on continuing growth of the Panthers Group. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses.
GREG ALEXANDER, DEPUTY CHAIRMAN DEPUTY CHAIRMAN FOR 1 YEAR | DIRECTOR FOR 15 YEARS Involved with rugby league in Penrith for over 40 years. Penrith’s “Rookie of the Year” in 1984. Won the prestigious Dally M Player of the Year in 1985. Played City Origin, State of Origin and for Australia. Captained Penrith’s first premiership win in 1991. Sports Commentator on Fox Sports. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses. Inducted into the Panthers Hall of Fame in 2016.
PETER GRAHAM, DIRECTOR DIRECTOR FOR 1 YEAR Loyal supporter of the Panthers since 1967. Founding member of the Executive of Emu Plains Little Athletics Club. President of Nepean High P&C for 5 years. Mentor with Panthers on the Prowl Building Young Men Program. Director of Panthers on the Prowl. Played rugby league for Emu Plains. Extensive executive and board experience in the power and media industries and the university sector. Principal of PTG Consulting. Chair of Western Sydney University College. Graduate of Western Sydney University and Harvard Business School. Member of the Australian Institute of Company Directors. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses.
10 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
IAN HICKS, DIRECTOR DIRECTOR FOR 2 YEARS Managing Director of Hix Group Pty Ltd, a local business that employs over 70 local people. A passionate supporter of Panthers and is a corporate sponsor. Director of Western Sydney Business Centre, Director of Penrith CBD Corp. and a Director of Panthers on the Prowl. A Panthers member for more than 33 years, he is passionate about representing the members interest and helping Panthers to continue its growth to be the biggest and best club in Australia. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses.
DENIS MERRICK FCPA JP, DIRECTOR DIRECTOR FOR 9 YEARS Certified Practising Accountant (Retired). Principal in accounting firms in Penrith for over 40 years. Over 30 years’ experience in administration of sporting bodies. Life Member of Lower Mountains Junior Rugby League Club. Qualified Rugby League Coach and Referee. Accredited official with Swimming Australia. Swimming Life Member of a local club and district association. Panthers Member since 1973. Chairman of the Finance and Audit Sub-committee. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses.
MARK MULOCK, INDEPENDENT DIRECTOR DIRECTOR FOR 1 YEAR Born, bred and raised in Penrith. Lifetime Panthers supporter. Board Member of Panthers on the Prowl. Founding member of The Great Walk Foundation, Penrith charity. Member and current Chairman of Olatype Pty. Limited – Penrith business group. Legal Practitioner for 35 years practising in Penrith as Mark Mulock & Co Pty. Limited since 1991. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses.
DAVID MAYNE, INDEPENDENT DIRECTOR DIRECTOR FOR 4 YEARS Panthers Port Macquarie Advisory Committee member since 2005, Vice Chair since 2008 and elected Chair in 2014. A past Regional Manager of Wesley Mission. Management consultant conflict resolution, HRM, operations and structure. Marketing Manager TAFE. Councillor Hastings Council. President Chamber of Commerce. Assistant Governor Rotary. Chair Life Education. Extensive experience in business management and marketing with passion for operational and structural development whilst understanding the importance members play in the growth & vibrancy of Panthers. Completed ClubsNSW Finance for Club Boards, Director Foundation and Management Collaboration Courses.
ANNUAL REPORT 2017 • 11
DIRECTORS’ REPORT Your directors submit their report on Penrith District Rugby League Football Club Limited (the “Football Club”) for the year ended 31 October 2017. DIRECTORS All directors are current members of the Penrith District Rugby League Football Club Limited and were in office for this entire period unless otherwise stated. The names and details of the directors of the consolidated entity in office during the financial year and until the date of this report are as follows: –– –– –– –– –– –– ––
David O’Neill Gregory Alexander Peter Graham Ian Hicks Denis Merrick FCPA JP Mark Mulock David Mayne
DIVIDENDS The Football Club is limited by guarantee and is prevented by its constitution from paying any dividends. PRINCIPAL ACTIVITIES The principal activities of the Football Club during the year were: –– Promotion of the game of rugby league football; –– Provision of facilities for sport and recreation; –– Sponsorship activities; and –– Advertising and promotion activities. There have been no significant changes in the nature of these activities during the year. OPERATING AND FINANCIAL REVIEW Revenue from ordinary activities for the year increased by $558,000 or 2.1% to $26,735,000 (2016 $26,177,000). This was mainly due to: –– An increase in operational revenue of $565,000 or 4.4% to $13,270,000 (2016: $12,705,000) related largely to the increase in sponsorship, catering and beverages. –– An increase in grants received from the NRL of $210,000 or 2.7% to $8,060,000 (2016: $7,850,000). –– A decrease in other income of $1,122,000 or 20% to $4,500,000 (2016: $5,622,000). Operating results for the year The net deficit after tax of the Football Club for the year ended 31 October 2017 was $4,278,000 (2016: $3,713,000). Employees The Football Club employed 179 employees as at 31 October 2017 (2016: 194).
12 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
DIRECTORS’ REPORT (CONTINUED) SHORT AND LONG TERM OBJECTIVES The Football Club’s short term objectives are to utilise the new Academy facilities to provide a premium training and development environment for senior and junior players. The Football Club’s long term objectives are to harness and cultivate the rugby league talent of the Penrith region. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS On 20 December 2016, the Football Club entered into a Deed of Arrangement with the National Rugby League Limited that detailed the future grant funding to be provided by the NRL, to the Football Club, as a result of the Football Club’s continued participation in the NRL competition. The NRL have since clarified that the $3.0 million total payment received during FY16 & FY17 is to be treated as a Grant in advance which will be released across 5 years beginning FY18 with 1/5th current and 4/5ths non current. There have been no other significant changes in the state of affairs during the year. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD There have been no significant events after the reporting period which may affect either the Football Club’s operations or results of those operations or the Football Club’s state of affairs. LIKELY DEVELOPMENTS AND EXPECTED RESULTS Likely developments in the operations of the Football Club and the expected results of those operations in future financial years have not been included in this report, as the inclusion of such information is likely to result in unreasonable prejudice to the Football Club. ENVIRONMENTAL REGULATION AND PERFORMANCE The Football Club is not subject to any particular or significant environmental regulation. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS During the financial year, the parent entity, Penrith Rugby League Club Limited, held an insurance policy for the benefit of the directors and officers. In accordance with commercial practice, the insurance policy prohibits disclosure of the terms of the policy, including the nature of the liability insured against and the amount of the premium. INDEMNIFICATION OF AUDITORS To the extent permitted by law, the Football Club has agreed to indemnify its auditors, Ernst & Young (Australia), 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 (Australia) during or since the financial year.
ANNUAL REPORT 2017 • 13
DIRECTORS’ REPORT (CONTINUED) DIRECTORS’ MEETING The number of meetings of directors held during the year and the number of meetings attended by each director were as follows: Number of meetings held whilst in office
Number of meetings attended
D. O' Neill
12
12
G. Alexander
12
9
I. Hicks
12
12
D. Merrick FCPA JP
12
11
P. Graham
12
11
D. Mayne
7
5
M. Mulock
7
7
Number of meetings held: 12 Number of meetings attended:
Directors’ benefits The directors were remunerated for the performance of their duties as common directors of Penrith Rugby League Club Limited and Penrith District Rugby League Football Club Limited. ROUNDING The amounts contained in this report and in the financial report have been rounded to the nearest $1,000 (where rounding is applicable). Where noted ($’000) under the option available to the Football Club under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. The Football Club is an entity to which this legislative instrument applies. AUDITOR INDEPENDENCE AND NON AUDIT SERVICES The directors received an independence declaration from the auditor, Ernst & Young (Australia). A copy has been included on page 15 of the report. The directors are satisfied that the nature and scope of non audit services has not compromised the auditor’s independence. Signed in accordance with a resolution of the directors.
David O’Neill Chairman Penrith, 31 January 2018
14 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
Ernst & Young 200 George Street 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
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Auditor’s Independence Declaration to the Directors of Penrith Rugby League Club Limited
As lead auditor for the audit of Penrith Rugby Club Limited for the District financial Rugby year ended 31 Auditor’s Independence Declaration to League the Directors of Penrith League October 2017, I declare to the best of my knowledge and belief, there have been: Football Club Limited a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and As lead auditor for the audit of Penrith District Rugby League Football Club Limited for the financial year b) 31 noOctober contraventions of any applicable professional conduct in relation the audit. ended 2017, I declare to the bestcode of myofknowledge and belief, there have to been: Thisa)declaration is in respect of Penrith League requirements Club Limited and theCorporations entities it controlled no contraventions of the auditor Rugby independence of the Act 2001during in relation to the audit; and the financial year. b) no contraventions of any applicable code of professional conduct in relation to the audit.
Ernst & Young Ernst & Young
Daniel Cunningham Partner 31 January 2018 Daniel Cunningham Partner 31 January 2018
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
ANNUAL REPORT 2017 • 15 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 OCTOBER 2017
2017
2016
$'000
$'000
26,735
26,177
(1,697)
(1,649)
(18,848)
(18,578)
(1,576)
(1,525)
Notes
Income from operations
4
Raw materials and consumables used Salaries and employee benefits expenses Depreciation
5
(2)
-
Advertising and promotion
(395)
(399)
Artists and entertainment expenses
(250)
(267)
-
(18)
Insurance expenses
(261)
(406)
Repairs and maintenance expenses
(911)
(858)
Bad and doubtful debts
Net loss on disposal of property, plant and equipment
Rent and rates expenses
(172)
(169)
Electricity expenses
(229)
(241)
(2,566)
(2,474)
Medical expenses
(686)
(898)
Training expenses
(500)
(504)
Junior development
(226)
(211)
Other expenses
(2,200)
(1,668)
Impairment loss
(479)
-
(15)
(25)
(4,278)
(3,713)
-
-
(4,278)
(3,713)
Sponsorship expenses
Finance costs Deficit before income tax Income tax expense Deficit from operations after income tax
-
-
(4,278)
(3,713)
Other comprehensive income Total comprehensive loss for the year
The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
16 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2017
Notes
2017
2016
$'000
$'000
Assets Current assets Cash
6
236
172
Trade and other receivables
7
1,500
2,758
122
100
Inventories Prepayments Total current assets
252
311
2,110
3,341
Non-current assets Trade and other receivables
7
56,589
56,747
Property, plant and equipment
8
13,720
15,068
Total non-current assets
70,309
71,815
Total assets
72,419
75,156
1,288
1,277
Liabilities and equity Current liabilities Trade and other payables
9
Employee benefit liabilities
10
333
301
Deferred revenue
11
1,589
1,020
3,210
2,598
10
99
70
Deferred revenue
11
2,400
-
Interest-bearing loans and borrowings
12
-
1,500
Total non-current liabilities
2,499
1,570
Total liabilities
5,709
4,168
Retained earnings
66,710
70,988
Total equity
66,710
70,988
Total equity and liabilities
72,419
75,156
Total current liabilities Non-current liabilities Employee benefit liabilities
Equity
The above statement of financial position should be read in conjunction with the accompanying notes.
ANNUAL REPORT 2017 • 17
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2017
Retained earnings
Total equity
$'000
$'000
At 1 November 2016
70,988
70,988
Deficit for the year
(4,278)
(4,278)
-
-
Total comprehensive loss for the year
(4,278)
(4,278)
At 31 October 2017
66,710
66,710
At 1 November 2015
74,701
74,701
Deficit for the year
(3,713)
(3,713)
-
-
Total comprehensive loss for the year
(3,713)
(3,713)
At 31 October 2016
70,988
70,988
Other comprehensive income
Other comprehensive income
The above statement of changes in equity should be read in conjunction with the accompanying notes.
18 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2017
2017
2016
$'000
$'000
20,486
18,488
(30,673)
(28,560)
8,060
7,850
(15)
(25)
(2,142)
(2,247)
-
64
Purchase of property, plant and equipment
(357)
(4,508)
Net cash flows used in investing activities
(357)
(4,444)
Advances from National Rugby League Limited
1,500
1,500
Repayment of loans from related parties
1,063
4,558
Net cash flows from financing activities
2,563
6,058
Net increase/(decrease) in cash and cash equivalents
64
(633)
Cash and cash equivalents at 1 November
172
805
236
172
Notes
Operating activities Receipts from customers Payments to suppliers and employees Receipt from grants Interest paid Net cash flows used in operating activities Investing activities Proceeds from sale of property, plant and equipment
Financing activities
Cash and cash equivalents at 31 October
6
The above statement of cash flows should be read in conjunction with the accompanying notes.
ANNUAL REPORT 2017 • 19
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017 1.
CORPORATE INFORMATION The financial report of Penrith District Rugby League Football Club Limited (the “Football Club”) for the year ended 31 October 2017 was authorised for issue in accordance with a resolution of the directors on 31 January 2018. Penrith District Rugby League Football Club Limited is a company limited by guarantee that is incorporated and domiciled in Penrith, Australia. The directors have determined that the Football Club is a not-for-profit entity. The registered office of the Company is Mulgoa Road, Penrith, NSW 2750.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a.) Basis of preparation The financial report is a general purpose 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. The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($000), except when otherwise stated. (b.) Going concern This financial report has been prepared on the going concern basis. At the reporting date, the entity’s total current liabilities exceeded total current assets by $1,100,000. The directors of the entity have received a letter of continued financial support from its ultimate parent entity, Penrith Rugby League Club Limited (PRLC) which shows that PRLC will undertake to continue to provide such financial support as is necessary to enable the entity to meet its debts as and when they fall due and payable. (c.) Statement of compliance The financial statements of the Football Club are tier 2, general purpose financial statements which have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements (AASB - RDRs) (including Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The financial statements also comply with Australian Accounting Standards which contain requirements specific to not-for-profit entities, including standards AASB 116 Property, Plant and Equipment, AASB 136 Impairment of Assets, AASB 1004 Contributions and AASB 1054 Australian Additional Disclosures. (d.) Changes in accounting policies, new and amended standards and interpretations The accounting policies adopted are consistent with those of the previous financial year. The new and amended Australian Accounting Standards and AASB Interpretations that apply for the first time in 2016/2017 do not impact the financial statements of the Football Club.
20 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (e.) Current versus non-current classification The Football Club presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: –– Expected to be realised or intended to be sold or consumed in the normal operating cycle –– Held primarily for the purpose of trading –– Expected to be realised within twelve months after the reporting period, or –– Cash or a cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after 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 Football Club classifies all other liabilities as non-current. (f.) Cash Cash in the statement of financial position comprises cash at bank and on hand. The main treasury function of the Football Club is operated on a central basis and is controlled by the parent entity. For the purposes of the statement of cash flows, all cash received or paid by the parent entity on behalf of the Football Club has been included in the statement of cash flows. The ‘advances from related parties’ represents the net effect of transactions conducted through the central treasury function. (g.) Trade and other receivables Trade receivables, which generally have 7, 14 or 30-days terms, are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence that the Football Club will not be able to collect the debts. Bad debts are written off when identified. Loan receivables from related parties are classified as loans and receivables and carried at amortised cost using the effective interest rate method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the loans are derecognised or impaired, as well as through the amortisation process. (h.) Inventories Inventories are valued at the lower of cost and net realisable value. Costs have been assigned to inventory quantities on hand at reporting date using the weighted average basis. Cost comprises invoiced cost plus freight and handling charges. Net realisable value is the estimated selling price in the ordinary course of business less estimated costs necessary to make the sale.
ANNUAL REPORT 2017 • 21
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (i.) Property, plant and equipment (i.) Cost and valuation Plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. (ii.) Capital work in progress Costs incurred which are related to capital projects are carried forward and capitalised where future benefits are expected, beyond any reasonable doubt, to exceed these costs. (iii.) Depreciation Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets as follows: Land is not depreciated.
Buildings Plant and equipment Leasehold improvement Motor vehicles
2017
2016
40 years
40 years
2-15 years
2-15 years
expected lease term
expected lease term
3-5 years
3-5 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 method of depreciation of property, plant and equipment are reviewed at each financial year and adjusted prospectively, if appropriate. (j.) Leases The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement. 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. (k.) Trade and other payables Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Football Club prior to the end of the financial year that are unpaid and arise when the Football Club becomes obliged to make future payments in respect of the purchase of these goods and services.
22 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (l.) 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. Gains and losses are recognised in income statement when the liabilities are derecognised. Borrowings are classified as current liabilities unless the Football Club has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. (m.) Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. 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 that asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. The Football Club does not currently hold qualifying assets but, if it did, the borrowing costs directly associated with this asset would be capitalised (including any other associated costs directly attributable to the borrowing and temporary investment income earned on the borrowing). (n.) Employee benefit liabilities General Provisions are recognised when the Football 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. When the Football Club expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss and other comprehensive income net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as finance costs. (i.) Wages, salaries, and sick leave Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave which are expected to be settled within 12 months of the reporting date are recognised in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.
ANNUAL REPORT 2017 • 23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (n.) Employee benefit liabilities (continued) (ii.) Long service leave and annual leave The Football Club does not expect its long service leave or annual leave benefits to be settled wholly within 12 months of each reporting date. The Football Club recognises a liability for long service leave and annual leave measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows. (o.) Revenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Football Club and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The Football Club has concluded that it is acting as a principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements, has pricing latitude and is also exposed to inventory and credit risks. The specific recognition criteria described below must also be met before revenue is recognised. Merchandise Sales Revenue is taken to account when the control of the goods has passed to the buyer. Sponsorship Income Revenue is taken to account in the period to which the sponsorship relates. Grant Income Revenue is taken to account in the period in which all the attached conditions have been complied with, the Football Club has control of the grant monies (the right to receive the grant) and it is probable that the economic benefits comprising the grant will flow to the Football Club. Trust Income Revenue is taken to account when the control of the right to receive the distribution has passed to the Football Club.
(p.) Taxes Income tax The Football Club is exempt from income tax under Section 50-45 of the Income Tax Assessment Act (1997). 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
24 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (p.) Taxes (continued) The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows. (q.) Distributions Distributions from a trust of which the Football Club is a beneficiary are taken to income when the distribution is made. (r.) Impairment of non-current assets The Football Club assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Football Club makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Football Club’s assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cashgenerating unit (CGU) to which it belongs. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the Football Club has used depreciated replacement cost since the Football Club is a not-for-profit entity where the future economic benefits of its assets are not primarily dependent on the ability of the assets to generate net cash inflows and the Football Club would, if deprived of the asset, replace its remaining future economic benefits. Impairment losses are recognised in those expense categories consistent with the function of the impaired asset period. An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit or loss and other comprehensive income. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.
ANNUAL REPORT 2017 • 25
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
3. SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS The preparation of the Football Club’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Football 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 beyond the control of the Football Club. Such changes are reflected in the assumptions when they occur. Impairment of non-financial assets An impairment exists when the carrying value of an asset or CGU exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Football Club is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.
26 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017 4. INCOME FROM OPERATIONS
(a.)
2016
$’000
$’000
Revenues from operating activities Revenue from sponsorship
7,846
7,138
Revenue from catering and beverages
1,647
1,449
Revenue from functions and banquets
257
203
Revenue from gate receipts
2,130
2,328
Revenue from merchandise sales
1,390
1,587
13,270
12,705
905
-
2,860
3,266
Total revenue from operating activities (b.)
2017
Other income Trust income - other related party (a) Interest received from related parties
890
1,606
8,060
7,850
750
750
Total other income
13,465
13,472
Total income from operations
26,735
26,177
Other revenue NRL grant Grant received from related parties
(a) Mulgoa Land Trust (No 1) This trust owns land and buildings from which it derives rents. Each year the trust distributes its income to the discretionary beneficiary which is Penrith District Rugby League Football Club Limited. Distribution made to Penrith District Rugby League Football Club Limited for the year ended 31 October 2017 was $905,000 (2016: $nil).
5. EXPENSES
2017
2016
$’000
$’000
15,853
15,809
Defined contribution plan expense
1,160
1,099
Payroll and FBT tax
1,835
1,670
18,848
18,578
2017
2016
$’000
$’000
236
172
Salaries and employee benefits expense Wages and salaries
Total salaries and employee benefits expense
6. CASH
Cash at bank and on hand
ANNUAL REPORT 2017 • 27
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
7.
TRADE AND OTHER RECEIVABLES 2017
2016
$’000
$’000
947
1,913
Current Trade debtors
(2)
-
945
1,913
555
845
1,500
2,758
Provision for doubtful debts Sundry debtors Carrying amount of trade and other receivables
Credit sales are on 7, 14 or 30 days terms. Other receivables represent loans to players and are ordinarily recouped from their salaries.
2017
2016
$’000
$’000
At 1 November
-
6
Charge for the year
2
-
Amounts written off
-
(6)
At 31 October
2
-
2017
2016
$’000
$’000
Receivables due from related party
56,589
56,747
Carrying amount of non-current receivables
56,589
56,747
Provision for doubtful debts Movements in the provision for doubtful debts were as follows:
Non-current
Terms and conditions of the receivables are disclosed in Note 14.
28 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
8. PROPERTY, PLANT AND EQUIPMENT 2017
2016
$’000
$’000
At cost
575
575
Net carrying amount
575
575
2,730
2,720
(1,655)
(1,620)
1,075
1,100
6,350
6,106
(2,323)
(1,593)
4,027
4,513
At cost
16,128
16,128
Accumulated depreciation
(8,106)
(7,305)
8,022
8,823
135
107
(124)
(93)
11
14
At cost
10
43
Net carrying amount
10
43
25,928
25,679
(12,208)
(10,611)
13,720
15,068
Land
Buildings At cost Accumulated depreciation Net carrying amount Plant and equipment At cost Accumulated depreciation Net carrying amount Leasehold improvement
Net carrying amount Motor vehicles At cost Accumulated depreciation Net carrying amount Work in progress
Total property, plant and equipment At cost Accumulated depreciation Net carrying amount
ANNUAL REPORT 2017 • 29
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
8. PROPERTY, PLANT AND EQUIPMENT (continued) Reconciliation of carrying amounts at the beginning and end of the year
2017
2016
$’000
$’000
Carrying amount at the beginning of the year
575
575
Balance at the end of the year - Net carrying amount
575
575
1,100
1,136
10
-
Land
Buildings Carrying amount at the beginning of the year Additions Depreciation charge for the year Balance at the end of the year - Net carrying amount
(35)
(36)
1,075
1,100
4,513
774
114
4,405
Plant and equipment Carrying amount at the beginning of the year Additions
129
-
Depreciation charge for the year
(729)
(666)
Balance at the end of the year - Net carrying amount
4,027
4,513
Carrying amount at the beginning of the year
8,823
9,632
Depreciation charge for the year
(801)
(809)
Balance at the end of the year - Net carrying amount
8,022
8,823
14
22
Transfers from work in process
Leasehold improvement
Motor vehicles Carrying amount at the beginning of the year Additions
8
88
Disposals
-
(82)
(11)
(14)
11
14
Carrying amount at the beginning of the year
43
28
Additions
96
15
(129)
-
10
43
Depreciation charge for the year Balance at the end of the year - Net carrying amount Work in progress
Transfers to property, plant and equipment Balance at the end of the year - Net carrying amount
30 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
8. PROPERTY, PLANT AND EQUIPMENT (continued) Reconciliation of carrying amounts at the beginning and end of the year
2017
2016
$’000
$’000
15,068
12,167
Additions
228
4,508
Disposals
-
(82)
Transfers
-
-
Depreciation charge for the year
(1,576)
(1,525)
Balance at the end of the year - Net carrying amount
13,720
15,068
Total property, plant and equipment Carrying amount at the beginning of the year
9. TRADE AND OTHER PAYABLES 2017
2016
$’000
$’000
Trade creditors
273
544
Other creditors and accruals
861
521
Goods and services tax
154
212
1,288
1,277
2017
2016
$’000
$’000
251
230
82
71
333
301
99
70
99
70
Current
Carrying amount of other payables
10. EMPLOYEE BENEFIT LIABILITIES
Current Annual leave Long service leave
Non-current Long service leave
Superannuation commitments All employees are entitled to varying levels of benefits on retirement, disability or death. The superannuation plans provide accumulated benefits. Employees contribute to the plans at various percentages of their wages and salaries. Contributions by the Football Club of up to 9.5% of employees’ wages and salaries are legally enforceable. The Football Club contributions for the year ended 31 October 2017 amounted to $1,159,724 (2016: $1,097,853).
ANNUAL REPORT 2017 • 31
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
11. DEFERRED REVENUE 2017
2016
$’000
$’000
1,589
1,020
1,589
1,020
Grants revenue (received in advance)
600
-
Sponsorship revenue (received in advance)
360
463
Membership income in advance
546
467
Current Including:
83
90
1,589
1,020
2,400
-
2017
2016
$’000
$’000
-
1,500
Rental revenue Non-current Grant in advance
12. INTEREST-BEARING LOANS AND BORROWINGS
Non-current Loans-NRL
During the year, the Company entered into a Deed of Agreement (the “Deed”) with the National Rugby League Limited with respect to the Company’s existing license agreement to participate in the NRL competition. As a result of entering into the agreement the National Rugby League Limited converted the prior year loan advanced to the Company of $1,500,000 to grant in advance. In addition, during the current year the National Rugby League Limited provided an additional $1,500,000 grant in advance. The $3,000,000 advance grants will be recognised as income over the 5 year period from 2018 to 2022.
13. CONTINGENT LIABILITIES AND COMMITMENTS (a.) Operating Lease Commitments - Football Club as lessee The Football Club has entered into a lease with Penrith City Council over the stadium located at Mulgoa Road, Penrith. The noncancellable lease has a remaining term of 11 years and 2 months. The lease includes a clause to enable upward revision of the base rental charge on an annual basis according to prevailing market conditions. Future minimum rentals payable under non-cancellable operating leases as at 31 October are as follows: 2017
2016
$’000
$’000
90
88
Within one year After one year but not more than five years
358
353
After more than five years
552
634
1,000
1,075
(b.) There are no capital commitments (2016: none). (c.) There are no contingent liabilities (2016: none). 32 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
14. RELATED PARTY DISCLOSURES (a.) The immediate and ultimate parent entity of the Football Club is Penrith Rugby League Club Limited. (b.) Transactions with related parties
(i.)
2017
2016
$’000
$’000
55,125
55,297
750
750
714
700
2017
2016
$’000
$’000
2,860
3,266
Amounts receivable at reporting date Ultimate parent entity Penrith Rugby League Club Limited Loans between related parties are charged at 5.41% per annum and have no fixed maturity date. Grants from Penrith Rugby League Club Grants from Penrith Rugby League Club remain unpaid as at balance sheet date. Other related entity Mulgoa Land Trust (No.1) Mulgoa Land Trust (No.1) owns land and buildings from which it derives rents. Each year the Trust distributes its income to the discretionary beneficiary Penrith District Rugby League Football Club Limited.
(ii.)
Provision of accounting and administrative assistance from controlling entity Accounting and administrative assistance provided by the controlling entity is free of charge.
(iii.)
Interest received Interest received on intercompany loans
15. MEMBERS’ GUARANTEE Pursuant to the Memorandum of Association, every member has undertaken, in the event of a deficiency on winding up, to contribute an amount not exceeding $5 (2016: $5). At 31 October 2017, such guarantees aggregated $440,015 (2016: $400,690). 16. KEY MANAGEMENT PERSONNEL Key management personnel compensation:
Total compensation
2017
2016
$’000
$’000
1,086
983
17. EVENTS AFTER THE REPORTING PERIOD There are no matters or circumstances that have arisen since the end of the financial year which significantly affected or may affect the operations of the club, the results of those operations, or the state of affairs of the club in future financial years.
ANNUAL REPORT 2017 • 33
DIRECTORS’ DECLARATION In accordance with a resolution of the trustees of Penrith District Rugby League Football Club Limited, I state that: In the opinion of the directors: (a.) The financial statements and notes of Penrith District Rugby League Football Club Limited for the financial year ended 31 October 2017 are in accordance with the Corporations Act 2001, including: (i.) giving a true and fair view of the Football Club’s financial position as at 31 October 2017 and its performance for the year ended on that date; and (ii.) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001 (b.) There are reasonable grounds to believe that the Football Club will be able to pay its debts as and when they become due and payable.
On behalf of the Board
David O’Neill Chairman Panther Group
Penrith, 31 January 2018
34 • PENRITH DISTRICT RUGBY LEAGUE FOOTBALL CLUB LIMITED
Ernst & Young 200 George Street Sydney NSW 2000 Australia Ernst & Young GPO Box 2646 Sydney NSW 2001 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 Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Independent auditor's report to the members of Penrith District Rugby League Football Club Limited Independent auditor's report to the members of Penrith District Rugby League Football Club Limited Opinion We have audited the financial report of Penrith District Rugby League Football Club Limited Opinion (the Company), which comprises the statement of financial position as at 31 October 2017, We have audited financial report of Penrith District Rugby League Football Club Limited the statement of the comprehensive income, statement of changes in equity and statement of (the which thenotes statement financial position asincluding at 31 October 2017, cashCompany), flows for the yearcomprises then ended, to theof financial statements, a summary the statementaccounting of comprehensive of changes in equity and statement of of significant policies,income, and the statement directors' declaration. cash flows for the year then ended, notes to the financial statements, including a summary of significant policies, and the directors' In our opinion,accounting the accompanying financial report of declaration. the Company is in accordance with the Corporations Act 2001, including: In our opinion, the accompanying financial report of the Company is in accordance with the Corporations including: a) giving a Act true2001, and fair view of the Company's financial position as at 31 October 2017 and of its financial performance for the year ended on that date; and a) giving a true and fair view of the Company's financial position as at 31 October 2017 and of its financial performance for theStandards year ended on that date; and Requirements b) complying with Australian Accounting – Reduced Disclosure and the Corporations Regulations 2001. b) complying with Australian Accounting Standards – Reduced Disclosure Requirements Corporations Regulations 2001. Basisand forthe Opinion We conducted our audit in accordance with Australian Auditing Standards. Our Basis for Opinion responsibilities under those standards are further described in the Auditor’s Responsibilities We conducted in accordance with Australian Auditing Standards. Our of the for the Audit ofour theaudit Financial Report section of our report. We are independent responsibilities under those areindependence further described in the Auditor’s Responsibilities Company in accordance withstandards the auditor requirements of the Corporations Act for theand Audit the Financial Reportofsection of our report. We are independent of the 2001 theofethical requirements the Accounting Professional and Ethical Standards Company in accordance the auditor independence requirements of thethat Corporations Act Board’s APES 110 Code with of Ethics for Professional Accountants (the Code) are relevant 2001 the requirements the Accounting Professional and Ethical to ourand audit ofethical the financial report inofAustralia. We have also fulfilled our otherStandards ethical Board’s APES 110 Code of Ethics Accountants (the Code) that are relevant responsibilities in accordance withfor theProfessional Code. to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities accordance with the Code.obtained is sufficient and appropriate to provide We believe that in the audit evidence we have a basis for our opinion. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ourOther opinion. Information than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information obtained at Information Other thanreport the Financial Reportreport and Auditor’s Report Thereonreport. the date of this auditor’s is the directors’ accompanying the financial The directors are responsible for the other information. The other information obtained at the of this auditor’s report is the directors’ report accompanying theand financial report.we Our date opinion on the financial report does not cover the other information accordingly do not express any form of assurance conclusion thereon. Our opinion on the financial report does not cover the other information and accordingly we do not expresswith anyour form of assurance conclusion thereon. In connection audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially In connectionwith withthe ourfinancial audit ofreport the financial report, our obtained responsibility to read the other inconsistent or our knowledge in theisaudit or otherwise information and, in doing so, consider whether the other information is materially appears to be materially misstated. inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears materially If, basedto onbe the work we misstated. 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 If, on the work we have performed, we conclude that there is a material misstatement thisbased regard. 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 A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
ANNUAL REPORT 2017 • 35
Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
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Responsibilities of the Directors for the Financial Report The directors of the are responsible for the preparation Responsibilities ofCompany the Directors for the Financial Report of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Independent auditor's report to the members of Penrith District Rugby The directors of the Company areCorporations responsible for preparation of the financial report Disclosure Requirements and the Actthe 2001 and for such internal control asthat the gives a true and fair view in accordance with Australian Accounting Standards – Reduced League Football Club Limited directors determine is necessary to enable the preparation of the financial report that gives a Disclosure Requirements andfrom the Corporations Act 2001 and for such as the true and fair view and is free material misstatement, whether dueinternal to fraudcontrol or error. directors determine is necessary to enable the preparation of the financial report that gives a Opinion true and fair the viewfinancial and is free fromthe material misstatement, whether due to fraud or error. In preparing report, directors are responsible for assessing the Company’s
We have audited the financial report of Penrith District Rugby League Football Club Limited ability to continue as a going concern, disclosing, as applicable, matters relating to going (the Company), which comprises the the statement ofare financial position as at 31 October 2017, In preparing the financial report, directors responsible for assessing the Company’s concern and using the going concern basis of accounting unless the directors either intend the statement of comprehensive income, statement of changes in equity and statement of to ability to the continue as a or going concern, disclosing, as applicable, matters relating totogoing liquidate Company to cease operations, or have no realistic alternative but do so. cash concern flows forand theusing year the then ended, notesbasis to the financial statements, includingeither a summary going concern of accounting unless the directors intend to of significant policies, and operations, the directors' declaration. liquidate accounting the Company or to cease have no realistic alternative but to do so. Auditor's Responsibilities for the Audit of or the Financial Report
objectives are to obtain reasonable assurance about whether financial report a In ourOur opinion, the accompanying financial report Company isthe in accordance withasthe Auditor's Responsibilities for the Audit of of thethe Financial Report whole is free from material misstatement, whether due to fraud or error, and to issue an Corporations Act 2001, including: Our objectives toincludes obtain reasonable assurance about whetheristhe financial as a auditor’s reportare that our opinion. Reasonable assurance a high levelreport of assurance, whole is free from material misstatement, whether due to fraud or error, and to issue an is not a guarantee that audit conducted in accordance with as theatAustralian Auditing a) but giving a report true and fair viewanofour theopinion. Company's financial position 31level October 2017 auditor’s that includes Reasonable assurance is a high of assurance, Standards alwaysperformance detect a material misstatement it exists. can arise and of itsawill financial the year endedwhen on that date; Misstatements and but not guarantee auditfor conducted Australian Auditing fromisfraud or error andthat arean considered materialinif,accordance individuallywith or inthe the aggregate, they Standards will always detect a to material misstatement when it exists. reasonably be expected influence the economic decisions of Misstatements users taken on can the arise basis b) could complying with Australian Accounting Standards – Reduced Disclosure Requirements from fraud or error and are considered material if, individually or in the aggregate, they of this financial report. and the Corporations Regulations 2001.the economic decisions of users taken on the basis could reasonably be expected to influence of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise Basisprofessional for Opinion judgment and maintain professional scepticism throughout the audit. We also: As part of our an audit with the AustralianAuditing AuditingStandards. Standards, Our we exercise We conducted auditininaccordance accordance with Australian professional judgment and maintain professional scepticism throughout the audit. We also: responsibilities under those standards are further described in the Auditor’s Responsibilities for the of theand Financial of our report. We are independent of thewhether Audit Identify assess Report the riskssection of material misstatement of the financial report, Company in accordance the auditor of the Corporations Act due to fraud orwith error, design andindependence perform auditrequirements procedures responsive to those risks, Identify andaudit assess the risks of material misstatement of the and ethical obtain evidence that is sufficient and appropriate tofinancial provide aStandards basis whether for our 2001 and the requirements of the Accounting Professional and Ethicalreport, due to fraud or error, and perform audit proceduresresulting responsive to fraud those is risks, opinion. risk notdesign detecting a material misstatement from Board’s APES 110 The Code of of Ethics for Professional Accountants (the Code) that are relevant and obtain audit evidence that is sufficient and appropriate to provide a basis for higher for one resulting from error, fraudalso mayfulfilled involveour collusion, forgery, our to our audit of thethan financial report in Australia. Weashave other ethical opinion. The risk of not detecting a material misstatement resulting from fraud is intentional omissions, misrepresentations, or the override of internal control. responsibilities in accordance with the Code. higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, the override of internal control. Obtain an audit understanding controlor relevant to the audit in order totodesign We believe that the evidence of weinternal have obtained is sufficient and appropriate provide audit procedures that are appropriate in the circumstances, but not for the purpose of a basis for our opinion. Obtain an understanding controlof relevant to the audit in order to design expressing an opinion on of theinternal effectiveness the Company’s internal control. audit procedures that are appropriate in the circumstances, but not for the purpose of Information Other than the Financial Report andthe Auditor’s Report Thereon expressing anappropriateness opinion on the effectiveness Company’s control. Evaluate the of accountingofpolicies used andinternal the reasonableness of The directors are responsible for the other information. The other information obtained at accounting estimates and related disclosures made by the directors. the date this auditor’s report is the directors’ report accompanying thereasonableness financial report. ofEvaluate the appropriateness of accounting policies used and the of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors’ use of the going concern basis of Our opinion on the financial report does not cover the other information and accordingly we accounting and, based on the audit evidence obtained, whether a material uncertainty do not form assurance conclusion thereon. express Conclude on the appropriateness of the directors’ of the going concern of existsany related toofevents or conditions that may castuse significant doubt on thebasis Company’s accounting and, based on the audit evidence obtained, whether a material uncertainty ability to continue as a going concern. If we conclude that a material uncertainty exists, In connection with our audit of the financial our cast responsibility to read theCompany’s other in exists related to to events or conditions thatauditor’s may significant ondisclosures the we are required draw attention inreport, our report to theisdoubt related ability to continue as a going concern. If we conclude that a material uncertainty information and, in doing so, consider whether the other information is materially the financial report or, if such disclosures are inadequate, to modify our opinion. exists, Our we are required to draw our auditor’s report inconsistent with the financial report ourinevidence knowledge obtained in audit ordisclosures otherwise conclusions are based onattention theoraudit obtained up to to the the related date of our auditor’sin report or, ifevents such disclosures aremay inadequate, toCompany modify our appears tothe be financial materially misstated. report. However, future or conditions cause the toopinion. cease toOur conclusions are based on the audit evidence obtained up to the date of our auditor’s continue as a going concern. report. However, future events orwe conditions Company cease to If, based on the work we have performed, concludemay thatcause therethe is a materialtomisstatement continue as& a going concern. A member firm of Ernst Young Global Limited of this other information, we are required to report that fact. We have nothing to report in Liability limited by a scheme approved under Professional Standards Legislation this regard. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation
36
Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001
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Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au
Evaluate the overall presentation, structure and content of the financial report,
Independent auditor's report to thethe members of Penrith District Rugby including the disclosures, and whether financial report represents the underlying transactions and events in a manner that achieves fair presentation. League Football Club Limited Opinion
We have communicate with the directors among Rugby other matters, the planned and We audited the financial report regarding, of Penrith District League Football Clubscope Limited timing of the audit and significant audit findings, including any significant deficiencies in (the Company), which comprises the statement of financial position as at 31 October 2017, internal control we identify during audit. of changes in equity and statement of the statement ofthat comprehensive income,our statement cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: a)
giving a true and fair view of the Company's financial position as at 31 October 2017
b)
complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.
Ernst & Young and of its financial performance for the year ended on that date; and
Daniel Cunningham
Basis Partnerfor Opinion
Sydney We conducted our audit in accordance with Australian Auditing Standards. Our 31 January 2018under those standards are further described in the Auditor’s Responsibilities responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is the directors’ report accompanying the financial report. 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 byErnst a scheme approved Professional Standards Legislation A member firm of & Young Global under Limited Liability limited by a scheme approved under Professional Standards Legislation
ANNUAL REPORT 2017 • 37