FINANCIALS

Review Of Operations

DIRECTORS’ REPORT

Football NSW's short-term objectives are to: deliver financial and organisational sustainability through effective corporate gov ernance, ensure structural and philosophical alignment with the Football Australia, develop a strong customer service focus and service delivery ethos. Football NSW's long term objective is to grow, develop and promote the game by supporting our members, stakeholders and football family through effect ive governance, strong leadership, transparent communication, professional administration and clear strategic direction.

After two Covid impacted years, Football NSW saw a full season of football activity this year including hosting the NPL NSW M en’s Grand Final at the Commonwealth Bank Stadium, and the return of our annual dinners for players, coaches, referees and administrators.

The operating performance this year has improved marginally from previous year. Outdoor community player registrations decrea sed compared to the previous year by 11.9k community players with financial impact of $400k mainly due to the increase in 'omicron' wave case num bers in early 2022 impacting decisions to play sport, wet weather, and flooding over February. Despite the community player number decreasing in FY2022, capitation and insurance fees revenue shows an increase in comparison to FY2021 due to credit provided to associations and clubs in relation to shortened football season in FY2021 amounting to $1.6m.

Revenue and operating expenses have increased in line with increase in operating activities as football returned, and against the reduction in income from the $1.6m credits as mentioned above.

The financials reflect a decrease 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, should the park ever be sold for residential redevelopment. As in previous years , we have undertaken an independent land valuation at the end of the financial year. In the current financial year, a decrease in the land value has resulted in a devaluation of the asset due to current market conditions. The valuation is based on the estimate of the developable area and the number of pote ntial sites that could be accommodated within the developable area. The residential market is currently going through a period of volatility which has affected the value of the site.

Football NSW has this year aligned its insurance period with the insurance providers, to the Football NSW financial year (Nov 1 to Oct 31). This alignment will enable accurate pricing of insurance premium charges to the associations and clubs, and reporting of insurance charges i n the financial report. This has also resulted in a one-off additional insurance expense due to higher player personal accident claims in FY2022.

In 2022 Football NSW also engaged consulting firm BDO to undertake a ‘current state’ review to align our staff management pra ctices with long-term strategy, and the Board put the finishing touches on a new Strategic Plan for the period 2023 -2026. These two actions together will ensure that Football NSW refines its services to better meet its members’ needs, and that our people and our practices are aligned to ensure succe ssful delivery.

Football NSW had two of its directors, Stephen Hayes and Louie Apostolovski, resign as of 31 December 2022. Also, two new dir ectors, Deborah Chapman and Brett Mitchell, joined the Board as of November 2021.

Football NSW CEO, Stuart Hodge, resigned as at the end of 2022, with the new CEO, John Tsatsimas started in December 2022.

Information On Directors

GILBERT LORQUET (elected 19 March 2021)

Chairman, Football NSW Limited

Chief Executive Officer, NORTH Foundation (philanthropic arm of Northern Sydney Local Health District)

Advisory Board Member, One Eighty (youth suicide prevention)

Former Director and Deputy Chairman, Canterbury District & Soccer Football Association

Life Membership Abbotsford Juniors Football Club

FIONA LANG (appointed 29 August 2018)

Deputy Chair, Football NSW Limited

General Manager/MD of BBC Studios, ANZ

INSEAD Business School Program

LOUIE APOSTOLOVSKI (elected 14 March 2014, appointed 11 May 2016, retired 31 December 2022)

Director, Football NSW Limited

Director, itravel

Life Member, Football NSW Limited

Foundation Life Member, Bankstown City Lions

STEPHEN HAYES (appointed 10 November 2010, elected 11 August 2011, appointed 11th May 2016, retired 31 December 2022)

Director, Football NSW Limited

Self Employed

George Churchward Medal Winner

Life Member, Riverina Branch, Boomers Football Club (Albury Wodonga), Albury Wodonga Football Association, Albury Wodonga Soccer Referees Association

CARLOS GONZALEZ (elected 31 March 2017)

Director, Football NSW Limited

Corporate Real Estate Professional

MORRIS IEMMA (elected 20 March 2020)

Director, Football NSW Limited

Chairman, Clean Energy Partnerships & Cancer Institute NSW

Director Ingham Medical Research Institute

Former Premier of New South Wales

STEPHANIE BRANTZ (Appointed Director from 14 January 2021, then was appointed to fill a casual vacancy from 4 May 2021)

Director, Football NSW Limited

Ambassador for 1 goal

Chair, DFAT Sports Diplomacy Advisory Council

Respected Australian freelance television sport presenter, reporter and commentator

BRETT MITCHELL (appointed 1 November 2021)

Director, Football NSW Limited

Member of Audit and Risk Committee, Football NSW

National Partner in Charge, KPMG Enterprise - Tax Advisory, Deals and Specialist Services

Board Member & Audit Committee Chair, KPMG Chartered Accountant, Registered Auditor, Registered Tax Agent Member, Australian Institute of Company Directors

DEBORAH CHAPMAN (appointed 2 November 2021)

Director, Football NSW Limited

Chair of Audit and Risk Committee, Football NSW

Chartered Accountant

Graduate of the Australian Institute of Company Directors

Chief Financial Officer of New South Wales Treasury

DIRECTORS’ REPORT

Meetings Of Directors

During the financial year, 11 meetings of directors were held. Attendances by each director were as follows:

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 2022, the total amount that members of the company are liable to contribute if the company is wound up is $1,160 (2021: $1,160).

Indemnification 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.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

During the financial year, the Company paid a premium in respect of a contract insuring the directors of the company, the company secretary and all executive officers to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

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's operations in future financial years, the results of those operations or Football NSW's state of affairs in future financial years.

ENVIRONMENTAL LEGISLATION

Football NSW's operations are not subject to any particular or significant environmental regulation under a law of the Commonwealth or a State or Territory in Australia.