2017 FINANCIAL STATEMENT
DIRECTORS' REPORT Your directors present this report on the entity for the financial year ended
31/10/2017
DIRECTORS The names of each person who has been a director during the year and to the date of this report are: Anter Isaac (elected 1 March 2013, re-elected 31 March 2017, Chairman since 11 May 2016) Rob Laws (elected 19 March 2016) Louie Apostolovski (elected 14 March 2014, appointed 11 May 2016) James Chetcuti (elected 1 March 2013, re-elected 31 March 2017) Chris Gardiner (elected 19 March 2016) Stephen Hayes (elected 14 March 2014, appointed 11 May 2016) Jeanette Jones (elected 19 March 2016) Carlos Gonzalez (elected 31 March 2017) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. PRINCIPAL ACTIVITIES The principal activity of the entity during the financial year was the fostering of the game at all levels from the Premier Leagues to grassroots community football for its members. Its primary objectives are to grow participation and enjoyment across the FNSW footprint and manage a Premier League and State league competition that drives the development of its players, coaches and referees for the longer term objectives of building a world class footballing nation. Its supplementary objectives are to promote the game, service it membership and act cohesively with FFA to provide a unity in purpose.
REVIEW OF OPERATIONS
DIRECTORS' REPORT
Football NSW is the governing body for association football (soccer) and futsal in the Australian state of New Sout��ith the exception of the northern regions of NSW (the governing body for which is Northern New South Wales Football). Football NSW Is a Member Federation ofthe national governing body, Football Federation Australia (FFA). Our aim is to grow, develop and promote the beautiful game by supporting our members, stakeholders and football family through effective governance, strong leadership, transparent communication, professional administration and clear strategic direction. The headquarters and offices of Football NSW are located at Valentine Sports Park. Valentine Sports Park is a multi-purpose sporting complex which caters for a range of sports clubs, groups and individuals. The complex boasts five playing fields {two synthetic fields), lecture rooms, international sized indoor futsal court, 20 metre indoor pool, on-site cafe and dining room. The operating performance this year is better than 2016, mainly due to increase in registered players, additional revenue from Valentine Sports Park and growth in other forms of the game including Summer Football. There was an increase in employee salary and wages costs due to additional roles, whilst insurance costs have increased in line with the higher amount of claims paid out under these policies. Increased investment has also been made in community football and elite player development. The financials reflect a minor increase in asset value of the land on which Valentine Sports Park is built. The market value should simply be seen as a paper valuation of the underlying land asset base that will be for future generations of the game should the park ever be sold for residential redevelopment. It should also be noted that any reduction in land values will require a devaluation of the asset and given the current market conditions such a devaluation in future should be considered quite possible.
INFORMATION ON DIRECTORS ANTER ISAAC (elected 1 March 2013, re-elected 31 March 2017, Chairman since 11 May 2016) Director & Chairman, Football NSW Limited Member of Audit & Risk Committee, Football NSW Limited Managing Director, Kleinmann Wang Director, Canterbury-Bankstown Bulldogs Rugby League Club Limited Chairman, Finance, Risk and Audit Committee, Canterbury-Bankstown Bulldogs Rugby League Club Limited Director, International Business Development, Beverly Hills Film Festival Lecturer and Masters Programme Curriculum Developer, International Centre for Sports Studies (GIES), University of Neuchatel, Switzerland Bachelor of Commerce (Accounting sub-major Corporate Law) Member, CPA Australia Member, Australian Institute of Company Directors ROB LAWS (elected 19 March 2016) Vice Chairman, Football NSW Limited Chairman of Audit & Risk Committee, Football NSW Limited STEPHEN HAYES (elected 14 March 2014, appointed 11 May 2016) Director, Football NSW Limited Self Employed George Churchward Medal Winner Life Member, Riverina Branch Life Member, Boomers Football Club {Albury Wodonga) Life Member, Albury Wodonga Football Association Life Member, Albury Wodonga Soccer Referees Association
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DIRECTORS' REPORT INFORMATION ON DIRECTORS (continued) JEANETTE JONES (elected 19 March 2016) Director, Football NSW Limited Member of Legal & Regulatory Committee Medical Practitioner MB BS (Hons) (UNSW) Life Member, North West Sydney Women's Football JAMES CHETCUTI (elected 1 March 2013, re-elected 31 March 2017) Director, Football NSW Limited Member of Legal & Regulatory Committee, Football NSW Limited Member of Project Control Group Sales Professional Diploma Accounting Diploma Business (Real Estate) Member - Australian Institute of Company Directors AFC C Coaching Licence LOUIE APOSTOLOVSKI (elected 14 March 2014, appointed 11 May 2016) Director, Football NSW Limited Director, itravel Diploma in Inventory ManagemenULogistics Diploma in Business Management Foundation Life Member, Bankstown City Lions CHRIS GARDINER (elected 19 March 2016) BA, MA, M Prof Ethics, MLM Director, Football NSW Limited Director, Lumina Learning Australia Fellow, Australian Institute of Management CARLOS GONZALEZ (elected 31 March 2017) State Director BGIS Corporate Real Estate Professional
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DIRECTORS' REPORT
MEETINGS OF DIRECTORS During the financial year, 14 meetings of directors were held. Attendances by each director were as follows: Number Number eligible to Director attend attended Anter Isaac Rob Laws Louie Apostolovski James Chetcuti Chris Gardiner Stephen Hayes Jeanette Jones Carlos Gonzalez
13 13 13 13 13 13 13 8
13 10 12 13 12 12 13 8
MEMBERS'GUARANTEE The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $ 20 each towards meeting any outstanding obligations of the entity. At 31 October 2017, the total amount that members of the company are liable to contribute if the company is wound up is $1,160 (2016: $1,160). INDEMNIFICIATION OF AUDITORS To the extent permitted by law, Football NSW 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 the financial year or since the financial year end. SIGNIFICANT EVENTS AFTER BALANCE DATE Other than that disclosed in this report and to the knowledge of directors, there has been no other matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may affect Football NSW' operations in future financial years, the results of those operations or Football NSW' state of affairs in future financial years. ENVIRONMENTAL LEGISLAT!ON Football NSW operations are not subject to any particular or significant environmental regulation under a law of the Commonwealth or a State of Territory in Australia.
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AUDITOR'S INDEPENDENCE DECLARATION The lead auditor's independence declaration for the year ended 31 October 2017 has been received and can be found on the following page.
Signed in accordance with a resolution of the Board of Directors.
ANTERISMC Director
Dated:
5
nd
22
February 2018
ROB LAWS Director
EV
Building a better working world
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 Football NSW Limited As lead auditor for the audit of Football NSW Limited for the financial year ended 31 October 2017, I declare to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) no contraventions of any applicable code of professional conduct in relation to the audit.
Ernst & Young
Daniel Cunningham Partner 22 February 2018
A member firm of Ernst & Young Global Limited Liability llmited by a scheme approved under Praressional Standards Legislation
INCOME STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2017
Note
2016 $
Revenue
2
15,083,150
13,935,626
Other income
2
18,477
7,831
Cost of Goods Sold Employee benefits expense Depreciation expense Finance costs Other expenses
3
Profit before income tax
(539,481)
(459,551)
(4,909,831)
(4,561,891)
(497,087)
(506,790)
(36,555)
(69,795)
(8,279,265)
(7,809,909)
839,408
535,521
839,408
535,521
Other comprehensive income after income tax: Fair Value Adjustment on Valentine Sports Park
2,645,009
936,935
Other comprehensive income for the year, net of tax:
2,645,009
936,935
Total comprehensive income for the year
3,484,417
1,472,456
Total comprehensive income attributable to members of the entity
3,484,417
1,472,456
Income tax expense
1(k)
Profit for the year
The accompanying notes form part of these financial statements.
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2017 $
STATEMENT OF FINANCIAL POSITION AS AT 31 OCTOBER 2017
Note
2016 $
CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other assets TOTAL CURRENT ASSETS
4 5 6 9
5,617,709 1,056,218 25,527 508,459 7,207,913
5,157,154 1,110,832 49,129 463,572 6,780,687
NON-CURRENT ASSETS Financial assets Property, plant and equipment TOTAL NON-CURRENT ASSETS
7 8
8,587 47,656,016 47,664,603
6,828 45,470,831 45,477,659
54,872,516
52,258,346
10 11 12 13
1,934,247 13,072 686,121 3,377,738 6,011,178
2,851,180 67,847 625,465 1,752,200 5,296,692
11 12 13
1,470 56,658
14,543 66,725 1,561,593
58,128
1,642,861
6,069,306
6,939,553
48,803,210
45,318,793
12,587,599 36,215,611 48,803,210
12,638,271 32,680,522 45,318,793
TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings Short-term provisions Other liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings Long-term provisions Other liabilities TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY
Retained earnings Reserves TOTAL EQUITY The accompanying notes form part of these financial statements.
8
2017 $
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 OCTOBER 2017 The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. Reserves Capital Asset Retained Profits Earnings Revaluation $ $ $ 12,237,111
Balance as at 1 November 2015 Total comprehensive income for the year Profit attributable to members Other comprehensive income for the year Fair value adjustment Addition to sinking fund
1(q)
Balance as at 31 October 2016 Total comprehensive income for the year Profit attributable to members
Total comprehensive income for the year Balance as at 31 October 2017
(134,361)
936,935
401,160
936,935
12,638,271
18,493,288
9
112,520
134,361 134,361 13,940,353
246,881
839,408
1(q) 1(r)
(143,580) (746,500) (50,672) 12,587,599
2,645,009
143,580 746,500
2,645,009 21,138,297
(a) Capital Profits Reserve The capital profits reserve records profits on sale of land. (b)
13,940,353
535,521
Total comprehensive income for the year
Other comprehensive income for the year Fair value adjustment Addition to sinking fund Addition to capital fund
17,556,353
Sinking/ Capital Fund $
Asset Revaluation Reserve The asset revaluation reserve records the revaluations of property, plant and equipment. The accompanying notes form part of these financial statements.
890,080 13,940,353
1,136,961
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 OCTOBER 2017
Note
2017 $
2016 $
CASH FLOWS FROM OPERATING ACTIVITIES 16,265,690 (15,642,924) 18,477
Receipts from sponsors, customers and members Payments to suppliers and employees Interest received
14,829,275 (12,822,409) 7,831
641,243
2,014,697
Payment for property, plant & equipment Government Funding - Facility Program
(37,562)
(278,636) 3,435,504
Net cash (used in) investing activities
(37,562)
3,156,868
Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES 3,000,000 (3,106,571) (36,555)
2,500,000 (4,122,594) (69,795)
Net cash (used in) financing activities
(143,126)
(1,692,389)
Net increase (decrease) in cash held
460,555
3,479,176
5,157,154
1,677,978
5,617,709
5,157,154
Proceeds from borrowings Repayments of borrowings Finance costs
Cash at beginning of financial year Cash at end of financial year
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The accompanying notes form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report of Football NSW Limited for the year ended 31 October 2017 was authorised for issue by the Directors on the 22 nd February 2018. The financial statements are for Football NSW Limited as an individual not for profit entity, incorporated and domiciled in Australia. Football NSW Limited is a company limited by guarantee.
Basis of Preparation The financial report is presented in Australian dollars. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Accounting Policies (a) Revenue and Other Income Revenue from the sale of goods is recognised upon delivery of goods to customers. Grant revenue is recognised in the statement of comprehensive income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably. Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established. Revenue from the rendering of a service is recognised upon delivery of the service to the customers. (b) Inventories Inventories are valued at the lower of cost or net realisable value.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair values as indicated, less, where applicable, accumulated depreciation and impairment losses. Freehold Property Freehold land and buildings are shown at their fair value based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings In periods where the freehold land and buildings are not subject to an independent valuation, the directors conduct directors' valuations on the carrying amount of the land and buildings to review that it is not materially different to the fair value. Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation surplus in equity. Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus. All other decreases are charged to the statement of comprehensive income. As the revalued buildings are depreciated, the difference between depreciation recognised in the statement of comprehensive income, which is based on the revalued carrying amount of the asset and the depreciation based on the asset's original cost, is transferred from the revaluation surplus to retained earnings. Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Property, plant and equipment Property, plant and equipment are measured on the cost basis less depreciation and impairment losses. The carrying amount of property, plant and equipment is reviewed annually by the entity to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of expected net cash flows which will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Depreciation The depreciable amount of all fixed assets including capitalised lease assets, but excluding freehold land and buildings, is depreciated on a straight-line basis over the asset's useful life to the entity commencing from the time the asset is held ready for use. Buildings are depreciated on written- down value (WDV) basis. The depreciation rates used for each class of depreciable assets are: Class of fixed asset Depreciation rate Freehold land and buildings 0-10% Motor vehicles 12.5-20% Plant and equipment 5-50%
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
..-ooTl!IALL
NSW
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (i) Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss. (ii) Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. (iii) Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference to similar instruments and option pricing models. Impairment At each reporting date, the entity assess whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the statement of comprehensive income. De-recognition Financial assets are derecognised where the contractual right to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017
FOOTBALL
NSW NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (j) Goods and Services Tax (GST} Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (k) Income Tax No provision for income tax has been raised as the entity is exempt income tax under Div 50 of the Income Tax Assessment Act 1997. (1) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (m) Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year. (n) Trade and Other Payables Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2017 Note
2017 $
2016 $
751,485 9,967,208 163,458 1,121,625 1,579,770 321,867 443,990 235,968 321,328 176,452
837,900 9,202,425 155,168 980,632 33,839 1,424,830 320,503 418,011 211,089 281,170 70,058
15,083,151
13,935,625
18,477
7,831
18,477
7,831
15,101,628
13,943,456
18,477
7,831
18,477
7,831
NOTE 2: REVENUE AND OTHER INCOME Revenue: Sales of goods Capitation and insurance fees Fines and appeals Football development grants Gross gates Revenue from Valentine Sports Park Marketing and promotion levy Membership fees Rent received Sponsorship Sundry revenue Total Revenue Other income: Interest received Total Other income Total Revenue and Other income (a) Interest revenue from: - external Total interest revenue
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2(a)