Cranbourne Turf Club
ing Club c a R y r t n u o C 2010/11 of the Year
Cranbourne Turf Club Inc Annual Report 2010/2011 – Annual Report 2010/2011
1
Annual General Meeting The Annual General Meeting of the Cranbourne Turf Club Inc will be held in the Manikato Room, Cranbourne Racecourse on Wednesday 23 November 2011 @ 6.00pm. BUSINESS 1.
Apologies
2.
Confirmation of Minutes of Annual General Meeting held on Wednesday 24 November 2010
3.
Chairman’s Report
4.
Treasurer’s Report
5.
To receive and adopt Financial Statement and Auditors Report for season 2010-2011
6.
To appoint Auditors for 2011-2012 season
7.
To elect three members to the committee
The following nominations have been received David Cook, Garry Runge & Geoff Whiffin. As no other nominations have been received, they will be duly elected.
NEIL BAINBRIDGE CHIEF EXECUTIVE OFFICER
– Annual Report 2010/2011
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Chairman’s Report
It is my pleasure as Chairman to present the 2010-2011 Chairman’s Report. The 2010-2011 racing season has been an outstanding year for the Cranbourne Turf Club. The clubs growth strategies have enabled the clubs financial position to turn around significantly in recent years and place Cranbourne in a very strong financial position. This year the operating profit of $121,402 is an increase of over $186,000 from the previous year.
What is extremely pleasing for the Club is that the improvement across many areas has been the result of well made plans, hard work and dedication that I believe has laid the foundation for continued success of the Club. Its been widely acknowledged that the Clubs move to exclusive Sunday meetings has provided increased opportunities. However, this is not the reason for success. Success has been achieved due to a number of factors, largely based on the Club making good decisions and establishing a work force unequalled in Country Victoria. Our commitment to take risks and strive for innovation has continually been embraced by industry participants and has raised the profile of our great club, which was established 143 years ago.
In many ways 2010-2011 will be remembered as the year that transformed thoroughbred racing in Cranbourne. The platform was laid for the development of Night Racing with construction on the $6.7M project commencing in May 2011. Night Racing has long been a vision of the Club and it’s extremely pleasing that Night Racing will commence in 20112012 season. Cranbourne will be the first and only Country Racing Club to conduct Night Racing, with Moonee Valley continuing its current Night Racing program on Friday nights.
Reality is, success rarely comes overnight, however success does come to those who make the right decisions when a clear vision and direction is established.
This season the Club also completed a Master Plan for the Cranbourne Racing Centre, that includes both racing and training activities. The Master Plan will be the road map for future development
– Annual Report 2010/2011
The Clubs successful year was crowned in August 2011 when the Club won the prestigious Victorian Country Racing Club of the Year award.
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Chairman’s Report Cont... and provide the stimulus for significant To all our partners and sponsors I say Noonan won the Apprentice Jockeys growth and development through the thank you. Without their support racing Premiership. precinct. at Cranbourne would not be as healthy as it is today. On behalf of the committee I would like From an operational view point, the Club to thank the members for their support has had an exceptional year. Raceday I would also like to take the opportunity during the season. Membership is attendances exceeded 40,000 patrons, to thank our partners and the racing vitally important to the success of the with admission revenues up 17% from community who rallied with us to raise Club and in recent years the number the previous season, whilst corporate funds for communities in Australia that of new members joining our Club hospitality increased 21% this season. were devastated by floods in January has been very satisfying. Whilst night 2011. Over the course of two race racing will significantly change our meetings the Club raised over $76,000 product offering, I firmly believe that A highlight of the year was undoubtedly for affected areas, with a staggering membership numbers will continue to the TAB Cranbourne Cup day. A crowd $54,000 being raised for the Benjeroop grow with the excitement of Friday and of over 9,000 patrons watched local community in northern Victoria, on the Saturday Night racing. trainer Michael Kent run the quinella inaugural Benjeroop Cup meeting held with Starmon winning from My Bentley. on 15 May 2011. The day was perfectly capped with an We look forward to the future of night after race concert from Gabriella Cilmi racing as we strive to improve our who is a six time ARIA winner including I would like to congratulate local trainer facilities for members and race day Best Female, Best Album and the Michael Kent this season who won his patrons. A special thank you to Rob Single of the Year. I would like to thank fourth straight trainers premiership. Warburton who has been assisting the our major partner Tabcorp for their In addition to successfully defending club throughout the design process. wonderful support of the Club. We look his premiership, as mentioned earlier forward to working with Tabcorp well Michael quinelled the TAB Cranbourne into the future. Cup. Craig Newitt collected the Our track continues to race extremely Cranbourne Jockeys Premiership well and has gained a strong reputation whilst up and coming apprentice Jake within the racing industry. Full credit – Annual Report 2010/2011
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Chairman’s Report Cont. to all our track staff for their tireless work, especially our Tracks & Facilities Manager Simon Hodgson and Racecourse Manager Benny Spierings for their hard work and dedication. A special thank you also to our administration team who have delivered some outstanding results across all elements of the thoroughbred racing industry in Cranbourne. The Club plays a major role in the Victorian industry, not just through racing but also with the management responsibilities of the states premier training centre.
in 1972. Sam has been an outstanding contributor to the success of the Club, whilst also serving as the Club’s Medical Officer since 1970. A warm welcome to Sean Clarkson who joined the committee during the year in filling Sam’s vacant position in March 2011.
outstanding results, whilst also laying a solid platform for the future success of the Club. Cranbourne has a significant role to play in the Victorian Racing Industry and we are well placed to achieve our vision.
In closing I would like to thank Racing Victoria and Country Racing Victoria for their continued support of racing in Cranbourne and their commitment to the Club’s vision. During the 2010-2011 season many significant announcements that were made would not have been possible without the support of the industry. Those included ROBIN DALEY the opening of the $3.2M all weather CHAIRMAN training track at the Cranbourne Training Complex and $6.7M in funding for lighting the Cranbourne Turf Club for Night Racing.
To my fellow committee members, thank you for your support throughout what has been an exciting and rewarding year for the Club. Special thanks to my Vice Chairman’s Geoff Whiffin and Andrew Brumby for the assistance during the year. During the year life member Dr Sam Finally, I am pleased to sign off an Birman retired from the committee after exception year for the Cranbourne 39 years of service having commenced Turf Club that has delivered some – Annual Report 2010/2011
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Racing Report The 2010/11 racing season was the club’s third year of racing exclusively on Sundays’ and was yet again a great success for the club. Attendance levels were again very strong with the fast growing south eastern growth corridor supporting racing at Cranbourne. Strong Sunday programs became a feature, along with large crowds and plenty of owners enjoying the convenience of Sunday racing and the close proximity of Cranbourne to the metropolitan region. Racing was well supported across the season with strong racing and wagering results achieved. Cranbourne continues to be a popular launching pad for the stars of tomorrow. On Cranbourne Cup Day the Michael Kent trained ABSOLUTELY flew home in the first race and finished 0.1 lengths from the winner on debut. ABSOLUTELY went on to win the AJC Oaks in 2011. LIGHTS OF HEAVEN won a maiden by seven lengths on debut on 23 January 2011 and went on to the win the SA Oaks two months later and was at one stage equal favourite for the 2011 Caulfield Cup. – Annual Report 2010/2011
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Racing Report Cont. TAB CRANBOURNE CUP Tabcorp became the new sponsors of the Cranbourne Cup and again offered a $1mil bonus to any horse that could win the Cranbourne Cup and Caulfield Cup the week later. An increase of $25,000 saw the TAB Cranbourne Cup prizemoney jump to $175,000 (plus $6,000 trophy) in 2010 which was saw a highly competitive field led out by the Irish import and Lee Freedman trained, FANJURA. Cranbourne trainer Michael Kent quinelled the Cranbourne Cup with STARMON (ridden by Glen Boss) and MY BENTLEY (Craig Newitt). Starmon gave Kent his first ever local Cup winner. It became a Cranbourne trifecta in the feature race with TUBE, trained by Damien Williams finishing in third position. Whilst the bonus received a great deal of publicity, the winner of the Cranbourne Cup STARMON did not run in the Caulfield Cup. Cranbourne Cup Day also saw the inaugural running of the $75,000 Apache Cat Classic, an Open Handicap run over 1000m. The Apache Cat Classic was hotly contested with the local crowd favourite STANZOUT carrying the hopes and dreams of a growing suburb. New Zealand trained COUP ALIGN (ridden by Glen Boss) took out the inaugural Apache Cat Classic with STANZOUT flashing home late carrying 60.5kgs.
– Annual Report 2010/2011
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Racing Report Cont. PREMIERSHIPS Congratulations to our 2010-2011 premiership winners. Local Cranbourne trainer Michael Kent collected his fourth straight premiership with an impressive 21 wins and a further 38 placings. Michael is a great supporter of his home town track with 129 runners for the season and won his first ever Cranbourne Cup when Starmon saluted in the big race. Craig Newitt won his second Cranbourne jockeys premierships with 14 wins, whilst apprentice rider Jake Noonan won his first Cranbourne Apprentice Jockey’s Premiership. Apprentice Jockey Wins J Noonan 10 I Gundogdu 7 A McCabe 7 J Maskiell 4 K Mallyon 2 Senior Jockeys Wins C Newitt 14 B Rawiller 11 L Nolen 10 C Symons 9 B Melham 8 Trainer Wins M Kent 21 P G Moody 13 R Smerdon 9 L Freedman 8 R Griffiths 7 – Annual Report 2010/2011
Seconds 5 5 4 4 3
Thirds 5 5 8 1 2
Starts 55 49 60 37 17
Strike Rate 18% 14% 12% 11% 12%
Seconds 16 13 2 11 15
Thirds 8 14 8 10 10
Starts 88 71 38 88 64
Strike Rate 16% 15% 18% 10% 13%
Seconds 22 5 4 0 6
Thirds 16 5 6 4 4
Starts 129 48 47 26 43
Strike Rate 16% 27% 19% 31% 16% 8
Treasurer’s Report The Cranbourne Turf Club recorded a profit for the 2010/11 financial year of $121,402, an increase of over $186,000 on last year and the highest profit recorded in a number of years. The cash profit, a key statistic referred to by Country Racing Victoria was $235,707, more than double the next best result of the last seven years. There were a number of significant increases in race day income during the year highlighted by a 35% increase in sponsorship, a 21% increase in hospitality packages and an 18% increase in admissions income. The total of these amounts meant race day income was close to $1.6 million for the year, more than $250,000 up on the previous highest annual total. Another significant factor for the profit increase was the improved result of Trios which saw a doubling in profit of the venue from the prior year. Trios achieved good income growth from bars and gaming and under a new management structure found significant cost savings. Trios is an extremely important part of our business and the success of it directly benefits our club allowing us to reinvest in the facilities for the benefit of all members and patrons. – Annual Report 2010/2011
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Treasurer’s Report Cont. The Club’s inhouse catering department continued to grow during the year, now catering for all Cranbourne Greyhound Club events, 20 Cranbourne Harness Club race meetings, Yarra Valley Racing Club events as well as a number of non race day functions. Over 140 events are now catered for annually by over 150 food and beverage staff. Another highlight for the year was our ability to raise over $76,000 for flood victims in both Victoria and Queensland. This money was raised through corporate donations as well as the club contributing 100% of gate admissions and a percentage of food and beverage sales from our 23rd January race day. While the Club has successfully increased race day and catering income, there are parts of the business which we have little control of. One such area is oncourse wagering, which continued the declining trend of the past decade. The fall in commission over the past 12 month’s was 2% whilst since 2004/05 the decrease is $92,000 or 38%. Over the same time frame total attendance at our race meetings has increased by 17%, reflecting the significant shift of betting from the TAB to corporate bookmakers – Annual Report 2010/2011
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Treasurer’s Report Cont. through both phone and internet options. Prizemoney and returns to owners of over $3.5 million was paid out on races conducted during 2010/11, with a record $175,000 on offer for the Cranbourne Cup. This places Cranbourne near the top of the list for country club returns. In closing, the Club has enjoyed an extremely successful 2010/11 season culminating in receiving the Country Racing Victoria Club of the Year award. This award recognises the hard work and terrific results our dedicated team has achieved. We are well situated financially as we head in to a new and exciting phase of night racing.
SILVIO MARINELLI TREASURER – Annual Report 2010/2011
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CRANBOURNE TURF CLUB INCORPORATED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 JULY 2011 Note Revenue
2
Employee benefits expense
2011 $
2010 $
2,774,166
2,366,602
(1,138,768)
(1,027,069)
Finance Costs
3
Depreciation and amortisation expense
3
(167,472)
(178,585)
Other expenses
3a
(1,396,692)
(1,278,170)
Profit / (Loss) before income tax
-
71,234
Income tax expense
1(a)
-
-
(117,222) -
Profit / (Loss) for the year
71,234
(117,222)
Other comprehensive income after income tax
50,168
52,552
Total comprehensive income for the year
121,402
(64,670)
Total comprehensive income attributable to members of the entity
121 402 121,402
(64 670) (64,670)
The accompanying notes form part of this financial report – Annual Report 2010/2011
12
CRANBOURNE TURF CLUB INCORPORATED
STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 2011 Note
2011 $
2010 $
Current Assets Cash and Cash equivalents Trade and Other receivables Inventories Other Current Assets Total Current Assets
4 5 6 7
186,799 103,582 46,636 18,057 355,074
121,695 170,574 52,307 17,802 362,378
Non-Current Assets Financial Assets Property, plant and equipment Total Non-Current Assets
8 9
1,563,524 12,825,594 14,389,118
1,414,803 12,909,548 14,324,351
14,744,192
14,686,729
Total Assets Current Liabilities Trade and Other Payables Provisions Total Current Liabilities
10 11
262,234 68,609 330,843
308,993 58,581 367,574
Non-Current Liabilities Provisions Total Non-Current Liabilities
11
31,759 31,759
8,799 8,799
362,602
376,373
14,381,590
14,310,356
2,980,917 11,400,673 14,381,590
3,031,085 11,279,271 14,310,356
Total Liabilities Net Assets Equity Reserves Retained Earnings Total Equity
12
The accompanying notes form part of this financial report – Annual Report 2010/2011
13
CRANBOURNE TURF CLUB INCORPORATED
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2011 Retained Earnings
Revaluation Surpluses
Capital Grant Reserve
Total
2010 Balance at beginning of the financial year Profit/(loss) for the year Other comprehensive income / (expenses) Balance at end of the financial year
11,343,941 (117,222) 52,552 11,279,271
Retained Earnings
2,563,110 2,563,110
Revaluation Surpluses
520,527 (52,552)
14,427,578 (117,222) -
467,975
14,310,356
Capital Grant Reserve
Total
2011 Balance at beginning of the financial year Profit/(loss) for the year Other comprehensive income / (expenses) Balance at end of the financial year
11,279,271 71,234 50,168 11,400,673
2,563,110 2,563,110
467,975 (50,168) 417,807
14,310,356 71,234 14,381,590
The accompanying notes form part of this financial report – Annual Report 2010/2011
14
CRANBOURNE TURF CLUB INCORPORATED
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2011
Cash Flows From Operating Activities
Note
Receipts from racing and gaming activities Operating grants received Payments to suppliers and employees Interest paid Interest received Distributions received from Joint Venture
2011 $ 2,460,650 3,000 (2,549,485) 8,712 180,289
Net cash flows from / (used in) operating activities
2010 $ 2,228,753 (2,389,996) 6,463 192,592
103,166
37,812
Payments for property, plant and equipment Proceeds from sale of property, plant and equipment
(92,497) 54,435
(65,484) -
Net cash flows from/(used in) investing activities
(38,062)
(65,484)
65,104
(27,672)
121,695
149,367
186,799
121,695
Cash Flows From Investing Activities
Net increase/(decrease) in cash held Cash at the beginning of the financial year Cash at the end of the financial year
4
The accompanying notes form part of this financial report – Annual Report 2010/2011
15
CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report covers Cranbourne Turf Club Inc as an individual entity. Cranbourne Turf Club Inc. is an association incorporated in Victoria under the Associations Incorporation Act (Victoria) 1981. Basis of Preparation Cranbourne Turf Club Inc has elected to early adopt the pronouncements AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements to the annual reporting period beginning 1July 2010. 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 Associations Incorporation Act 1981 . Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated. The financial statements has 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 (a) Income Tax Cranbourne Turf Club Inc. is exempt from income tax under Section 50-45 of the Income Tax Assessment Act 1997. (b) Inventories Inventories consist of food and beverages and are measured at the lower of cost and net realisable value. Costs are assigned on a specific identification basis and include direct costs and appropriate overheads, if any. (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Property Leasehold buildings and improvements are shown at committee's valuation. A valuation is carried out by the clubs insurer on a periodic but at least triennial basis to ensure that the carrying amount of leasehold buildings and improvements is not greater than fair value. g Any accumulated depreciation at the date of any revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by the committee to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets' employment and subsequent disposal. The expected net cash flows have not been discounted to their present values in determining recoverable amounts. The cost of fixed assets constructed within the club includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the club and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets including building and capitalised lease assets, is depreciated on a straight-line basis over their useful lives to the club commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Leasehold Improvements Office Equipment Computer Equipment Motor vehicles Plant & equipment Fixtures & Fittings
– Annual Report 2010/2011
Depreciation rate 2.50% to 10.0% 10.0% to 33.3% 33.33% 20.00% 10.00% to 33.3% 20.00% to 33.3% 16
CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each balance date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation relating to that asset are transferred to retained earnings. (d) Financial Instruments Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provision to the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted) Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified at "fair value through profit and loss" in which case transaction costs are expensed to the profit and loss immediately Classification and subsequent measurement Finance instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: (i) the amount at which the financial asset or financial liability is measured at initial recognition; (ii) less principal repayments; (iii) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and (iv) less any reduction for impairment. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. The club does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments. (i) Financial assets at fair value through profit or loss 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, 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 Loans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period, which will be classified as non-current assets (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the association's intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method. The association has not held any held-to-maturity investments in the current or comparative financial year. (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.
– Annual Report 2010/2011
17
CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011
(v) 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 club assesses 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 determine whether an impairment has arisen. Impairment losses are recognised in the statement of comprehensive income. Derecognition 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 expire. The difference between the carrying value of the financial liability 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. (e) Impairment of Assets At each reporting date, the club reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value-in-use, is compared to the asset's carrying value. Any carrying value. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the club estimates the recoverable amount of the cash-generating unit to which the asset belongs. (f) Employee Benefits Provision is made for the Club’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. These cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows. (g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. (h) Revenue and Other Income Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any income deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue. Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. 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 provision of memberships subscriptions is recognised on a straight-line basis over the financial year. All revenue is stated net of the amount of goods and services tax (GST). (i) 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 Taxation 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. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position Cash flows are included in the statement of cash flows on a gross basis, except for the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the ATO. The GST component of financing and investing activities which is recoverable from, or payable to, the ATO is classified as a part of operating cash flows. Accordingly, investing and financing cash flows are presented in the statement of cash flows net of the GST that is recoverable from, or payable to, the ATO
– Annual Report 2010/2011
18
CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011 (j) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (k) 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 association 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. (l) Provisions Provisions are recognised when the association 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. NOTE 2. REVENUE AND OTHER INCOME Sales Revenue Non raceday catering Racing Income Other Revenue Gaming revenue Grant Income Industry Prizemoney Funding Interest received Joint venture distributions Other revenue Profit/(loss) on disposal of plant & equipment
2011 $
2010 $
214,731 1,991,622
300,971 1,740,289
315,524 3,000 63,720 8,712 13,486 117,913 45,458 2,774,166
155,204 72,520 6,463 3,259 87,898 2,366,602
167,472
178,585
-
-
314,446 134,578 111,229 761,408 75,031 1,396,692
270,472 176,756 115,477 643,787 71,677 1,278,170
28,244 5,018 153,537 186,799
8,011 1,829 111,855 121,695
NOTE 3.PROFIT FOR THE YEAR EXPENSES Depreciation of non-current assets: Depreciation Finance costs (a) Other expenses Administration & Marketing Non raceday catering Racecourse maintenance Race day expenses & services Prize monies, trophies & other owners benefits
NOTE 4. CASH AND CASH EQUIVALENTS Cash at bank Cash on hand Cash on deposit
The effective interest rate on short term bank deposits was 4.0% (2010 4.5%); these deposits have an average maturity of 30 days Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows is reconciled to items in the statement of financial position as follows Cash and cash equivalents
186,799
121,695
NOTE 5. TRADE AND OTHER RECEIVABLES Current Trade receivables Other Receivables Total current trade and other receivables
54,421 49,161 103,582
118,402 52,172 170,574
Financial assets classified as loans and receivables Trade and other receivables Total current
103,582
170,574
– Annual Report 2010/2011
19
CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011
NOTE 6. INVENTORIES Current At Cost - Stock of food and beverages NOTE 7. OTHER CURRENT ASSETS Current Prepayments NOTE 8. FINANCIAL ASSETS - NON CURRENT Investment in Radio Sport 927 at cost Investment in Cranbourne Racing Centre Joint Venture Investment in Trios Tabaret Joint Venture
2011 $
2010 $
46,636 46,636
52,307 52,307
18,057 18,057
17,802 17,802
82,450 117,260 1,363,814 1,563,524
82,450 103,774 1,228,579 1,414,803
11,481,858 (77,751) 11,404,107
11,481,858 (61,494) 11,420,364
14,057 (13,192) 865
14,057 (11,523) 2,534
7,778 (7,778) -
15,887 (14,415) 1,472
15,500 (15,500) -
33,400 (28,548) 4,852
712,285 (436,592) 275,693
636,791 (394,885) 241,906
439 799 439,799 (387,734) 52,065
491 374 491,374 (414,263) 77,111
84,330 (36,695) 47,635
66,189 (20,366) 45,823
1,160,774 (124,268) 1,036,506
1,090,774 (79,498) 1,011,276
NOTE 9. PROPERTY, PLANT AND EQUIPMENT Leasehold buildings & Improvements at Committee Valuation July 1997 At valuation Less accumulated depreciation Office Equipment At cost Less accumulated depreciation Computer Equipment At cost Less accumulated depreciation Motor Vehicles At cost Less accumulated depreciation Plant and equipment At cost Less accumulated depreciation Furniture and fittings At cost Less accumulated depreciation Catering Equipment At cost Less accumulated depreciation Industry Funded Assets At cost Less accumulated depreciation Work In Progress At cost Less accumulated depreciation Total property, plant and equipment
8,723 8,723
104,210 104,210
12,825,594
12,909,548
11,420,364 (16,257) 11,404,107
11,436,792 (16,427) 11,420,364
2,534 (1,669) 865
5,345 (2,811) 2,534
Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Leasehold buildings & Improvements at Committee Valuation July 1997 Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011 Office Equipment Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
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CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011
Computer Equipment Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
2011 $ 1,472 (1,472) -
2010 $ 3,597 (2,125) 1,472
Motor Vehicles Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
4,852 (314) (4,538) -
11,257 (6,405) 4,852
Plant and equipment at cost Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
241,906 99,844 (8,663) (57,394) 275,693
275,985 21,693 (55,772) 241,906
Furniture and fittings Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
77,111 (25,046) 52,065
129,051 2,550 (54,490) 77,111
Catering Equipment Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
45,823 18,142 (16,329) 47,635
36,936 22,171 (13,285) 45,823
Industry Funded Assets Balance at 1 August 2010 Additions Disposals Depreciation expense Carrying amount at 31 July 2011
1,011,276 70,000 (44,769) 1,036,506
1,038,545 (27,269) 1,011,276
Work In Progress Balance at 1 August 2010 Additions Transfer to Assets Depreciation expense Carrying amount at 31 July 2011
104,210 8,723 (104,210) 8,723
85,140 19,070 104,210
Total property, plant and equipment
NOTE 10. TRADE AND OTHER PAYABLES Current Trade payables Sundry payables Income in advance Employee benefits
a) Financial liabilities at amortised cost classified as trade and other payables Trade and other payables: Total current Total non-current Less employee benefits Less income in advance Financial liabilities as trade and other payables
12,825,594
12,909,547 65,484
95,937 55,142 53,047 58,108 262,234
99,243 40,110 123,689 45,951 308,993
262,234
308,993
262,234 (58,108) (53,047) 151,079
308,993 (45,951) (123,689) 139,353
Collateral pledged No collateral has been pledged for any trade and other payable balances
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CRANBOURNE TURF CLUB INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2011
NOTE 11. PROVISIONS Opening balance at 1 August 2010 Additional provisions raised during year Balance at 31 July 2011 Analysis of total provisions Current Non Current
Long-term Employee Benefits 67,380 32,988 100,368
Total 67,380 32,988 100,368
68,609 31,759 100,368
58,581 8,799 67,380
Provision for Long-term Employee Benefits A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits have been included in Note 1. NOTE 12. RESERVES Asset and Revaluation Reserve The asset revaluation reserve records revaluation of non current assets. Capital Grant Reserve The capital grant reserve records receipt of capital funding from Racing Victoria Limited and Country Racing Victoria Limited prior to 1st August 2006. NOTE 13. CONTINGENT LIABILITIES There were no contingent liabilities at the date of this report to affect the financial statements. NOTE 14. RELATED PARTY TRANSACTIONS The names of persons who were members of the Committee at any time during the year were: Dr Sam Birman Robin Daley Chairman Paul Birman Silvio Marinelli Andrew Brumby Ken McCormack Sean Clarkson Garry Sidwell David Cook Geoff Whiffin No remuneration or retirement benefits are payable as the positions are voluntary. The following Committee members of the Club have received benefits from the business transactions arising in the ordinary course of the Club's business and conducted at ordinary commercial terms and conditions no more favourable than those it is reasonable to expect the Club would have adopted if dealing at arm's length in the same circumstances. Committee Member Nil NOTE 15. KEY MANAGEMENT PERSONNEL COMPENSATION The totals of remuneration paid to key management personnel (KMP) of the Club during the year are as follows: Key management personnel compensation
2011 $ 241,796
NOTE 16. FINANCIAL RISK MANAGEMENT
-1
2010 $ 229,173 0
The Club's financial instruments consist mainly of deposits with banks, local money market instruments, short term investments, accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements as follows: Financial Assets Cash and cash equivalents Loans and receivables Total Financial Assets Financial Liabilities Financial Liabilities at amortised cost - trade and other payables Total Financial Liabilities
Note 4 5
10
186,799 103,582 290,381
121,695 170,574 292,269
151,079 151,079
139,353 139,353
NOTE 17. CLUB DETAILS The registered office and principal place of business is Grant Street, Cranbourne Vic 3977 NOTE 18. SEGMENT REPORTING The club operates in the thoroughbred racing sector in Victoria.
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CRANBOURNE TURF CLUB INCORPORATED
STATEMENT BY MEMBERS OF THE COMMITTEE
In the opinion of the committee the financial report as set out in pages 1 to 11 1
Presents a true and fair view of the financial position of the Cranbourne Turf Club Inc. as at 31 July 2011 and its performance for the year ended on that date in accordance with Australian Accounting Standards, (including Australian Accounting Interpretations) of the Australian Accounting Standards Board.
2
At the date of this statement, there are reasonable grounds to believe that Cranbourne Turf Club inc. will be able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the committee and is signed for and on behalf of the Committee by:
Chairman ………………………………………… Robin Daley
Treasurer ………………………………………… Silvio Marinelli Dated this
17th
day of
October 2011
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Cranbourne Turf Club Inc Grant Street, Cranbourne 3977 Tel: (03) 5996 1300 Fax: (03) 5996 4972 Email: info@cranbourneturfclub.com.au www.cranbourneturfclub.com.au ABN: 72 001 641 203
– Annual Report 2010/2011
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