CASTLE HILL COUNTRY CLUB
ANNUAL REPORT AND
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2010
Office bearers 2010 Castle Hill Country Club Limited ABN 62 000 085 423
PRESIDENT:
David Geraghty VICE–PRESIDENT:
Robert Hickson CAPTAIN:
Lindsay Verdon VICE–CAPTAIN:
vacant
TREASURER:
Roy Jones
DIRECTORS:
Graham Hayton William Muter CHIEF EXECUTIVE OFFICER:
Stuart Fraser BANKERS:
Westpac
AUDITORS:
D A Strati & Associates SOLICITORS:
Snelgroves
ADDRESS:
Spurway Drive, Baulkham Hills NSW 2153
POSTAL ADDRESS:
PO BOX 6767, Baulkham Hills NSW 2153
CONTACT DETAILS:
Office: Golf Office: Email:
Castle Hill Country Club Limited ABN 62 000 085 423
9634 2499 9894 4155 admin@chcc.com.au
Pro Shop: Fax: Web:
9634 2573 9899 5086 www.chcc.com.au
Annual Report
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Notice of Annual General Meeting Notice is hereby given that the 60th Annual General Meeting of the Castle Hill Country Club Limited will be held at the Clubhouse, Windsor Road, Baulkham Hills on Monday, 18th October 2010, commencing at 7:30pm.
Resolution 8
Business
The members acknowledge that the benefits in Resolution 1 to 8 inclusive are only for certain members and Directors of the Club.
1. Apologies 2. To receive the report of the President and Committee for the year. 3. To receive and consider the Balance Sheet and Income and Expenditure Account for the year ended 30 June, 2010 together with the Reports of the Directors and Auditors thereon. 4. That pursuant to Section 10 (6) and 10 (6A) of the Registered Clubs Act 1976 the members approve and agree to the following expenditure and benefits for certain members of the Club during the period from the date of these resolutions to the date of the next Annual General Meeting.
Resolution 1 The Directors to have the right to enter their names with three others on competition booking sheets prior to the issue of such sheets to the general membership.
Resolution 2 Reserved car parking spaces for Directors and the Ladies Committee.
Provision of an expense account to the President and Captain to a maximum of $2,500 each p.a. All expenses incurred to be fully documented and approved by the Board.
5. To declare the result of the ballot for the election of the Board of Directors to hold office for the ensuing year.
Stuart Fraser
Chief Executive Officer
Note 1
To enable properly researched replies to be prepared for the benefit of members it would be appreciated if members who wish to raise any queries or seek information at the meeting concerning the annual Accounts, the Balance Sheet or Associated Statements or the affairs of the Club, give the Chief Executive Officer notice in writing of their queries by 11th October 2010.
Note 2
There is no requirement under the Corporations Law for the minutes of the previous General Meetings to be confirmed by this meeting. Minutes of the 59th Annual General Meeting held on Monday 19th October 2009 are on display on the Club’s Notice Board, or they may be inspected in the Office.
Resolution 3 The reasonable cost of a meal and beverage for each Director during/after each Board Meeting.
Resolution 4 The Annual Dinner for Board and Sub Committee Members and Partners – max cost $1850.
Resolution 5 The Annual President’s lunch for Sponsors and Invited members – max cost $1850.
Resolution 6 The Annual President’s Cocktail Party for members with 30 years membership.
Resolution 7 The reasonable cost of expenses incurred by Directors when representing the Club, such expenses to be approved by the Board.
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Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
President’s Report Dear Members, This year marks the 60th anniversary of the formation of Castle Hill Country Club Limited. The Club has grown from strength to strength over those years and has justifiably become one of the top 10 Sydney metropolitan courses. The last couple of years have not been easy for families and business, with greater pressure being put on our time and finances. On behalf of the Board I would like to thank our members for their support of the Club and assure each of you that your Club continues to remain financially secure and is well positioned to tackle the challenges that lay ahead of us. I am pleased to inform you that this year we are reporting a net profit of $161,487 which is a welcome improvement on the $29,510 profit last year. There has been a noticeable change in the structure of our membership with a number of members opting to avail themselves of the House and Non Play categories. Whilst there is an obvious resultant drop in subscription income, it is pleasing that those members have chosen to maintain their contact with the Club and, in doing so, secure the ability to move back to a playing category at a future point in time. Whilst our expenses have been kept in check throughout the year, income sources outside of subscriptions have shown a marked improvement. Whilst every effort is being made to minimise operational expenditure, it is important to focus on our ability to increase our income sources. Our course is by far our greatest asset and this year has seen one of the largest commitments of funds to the course in many years with the replacement of our irrigation system. The benefits of the new system include greater water use efficiency, reduced maintenance costs and, more notably for those who play on the course, a more expansive and healthier coverage of grass. The specification and tendering process for the irrigation system was very time consuming, as it was important to ensure that the final product was the most suitable for our application and that the pricing was fair. Weather delays have extended our anticipated completion date, and we now expect the project to be completed by the end of October 2010. The operation of the restaurant area is now under the direct management of the Club following negotiations with the proprietors of Ginnivans. New challenges are present with the operation of the restaurant. The recent member survey asked for feedback on catering options for that area and, at the time of writing, indications are that bistro style food is most preferred. Over the coming months you will notice cosmetic changes to the restaurant area. These changes are being made to freshen up the restaurants presentation and make it more appealing and comfortable for patrons. At the last AGM, members approved expenditure for an upgrade of the air-conditioning system within the Club. With the vacation of Ginnivans, we now have an opportunity to modify the entire floor space of the upstairs area of the Club. We have commissioned the preparation of a master plan for the entire upstairs area of the Club and, once the final design is decided upon (after
Castle Hill Country Club Limited ABN 62 000 085 423
consultation with members), we can more appropriately address the air-conditioning and future furnishing of the area. For a detailed explanation of the status of the air-conditioning project I refer you to the Vice President’s report in the August edition of Fairways. In the meantime, we will continue to maintain our existing air-conditioning system. I thank you for your patience and rest assured that it is our intention to end up with the most appropriate long term solution for the Club. The development of land surrounding the Club is forging ahead. We have been in regular consultation with Council and developers to ensure that the Club’s interests pertaining to safety, amenity and setbacks are protected. At the time of writing this report we are only a couple of weeks away from lodging our DA with Council for the subdivision of No 2 Fairway Drive. Once a DA has been granted we will register the subdivision and embark upon the sale of a portion of the subdivided land as approved by members at our EGM earlier this year. Many members will be aware of our recent ranking amongst Australia’s top 100 courses at position 97. Whilst it is pleasing that we remain in the top 100, I believe we certainly have scope not to just hold our place in the top 100, but rather to improve our ranking. We have a wonderful golfing facility and, amongst other things, it is the attention to detail which I believe will improve our ranking. Throughout the last year Martyn Black, his team and the Course Committee have been identifying and working on areas requiring improvement. The course has stood up exceptionally well to the cold of winter. The cooler months has enabled us to progress with our bunker improvement programme and provide you with better and more consistent bunkers. I would like to thank Martyn Black and his team for all their hard work in preparing and maintaining our course in such wonderful condition throughout the last year. By the time you read this report, nominations for elected positions will have closed. I would like to take this opportunity to remind all candidates, that Board members have a legal fiduciary duty to act in good faith and in the best interests of the members and it is essential to maintain confidentiality and objectivity at all times. The operation and successful management of our Club is an ongoing process. There are many goals to achieve during the coming months and years, some of which will require additional cash and others pure committed manpower – we have both. Members funds need to be managed with care and diligence and I believe that we, your Board, have done just that in the last year and will continue to do so into the future. I would like to take this opportunity to thank my fellow Board members, management and staff for their commitment throughout this last year. I look forward to the challenges that await us in the year ahead and thank you, the members for your continued support.
David Geraghty President
Annual Report
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Captain’s report Dear Members, The past 12 months have seen many changes to golf at Castle Hill. Step 1 of a new handicapping system was introduced, there were course rating system changes and a new course irrigation system. All this has made for a very interesting time. We have also continued to work on our 5 Year Strategic Plan to deliver a better golf course for all members. This is the first time I have had the chance to formally thank Keith Watson for all his hard work over the many years as both Director and Captain. I wish he and Glenda all the best for many years to come and assure Keith that his efforts will never be forgotten.
Gold Medals 2009 A Grade: John Barbara B Grade: Graham Foxcroft C Grade: Luke Kang
Course
Castle Hill Spring Cup 2009 Colin Gallagher (Concord) 2010 Martin Carmichael
For the last 12 months our weather pattern has taken us from one extreme to another. The total year’s rainfall was 933.5mm however it tended to fall in large quantities over a very short period making management of our course a difficult task. We have however seen our course presented at all times in a manner of which we can be proud. Of course, we can and will do better – that is our goal for 2010/2011 and onwards with our new irrigation system assisting to make this possible. The continuation and completion of the bunker rebuilding program has given us a group of bunkers that are well formed, well drained, have reasonably flat sand bases and are accessible. It has seen the time to have the bunkers back in play after adverse weather greatly reduced. We are now replenishing all bunkers with the same sand to ensure similar playing conditions throughout the course. Ongoing maintenance will be easier as a result of the completion of this program. Another significant activity over the last 12 months has been the pruning and thinning of tree foliage throughout the course. This has been done to improve the amount of sunlight we get to fairways and tees, allowing for better grass coverage and growth. We have also ensured that additional trees have been strategically planted to protect our boundaries and improve the beautification of our course. The rebuild of the 6th, 10th and 15th tees throughout the last year will be continued over the next 2 years where needed. The larger flat tees will allow more even wear throughout the year. As this report goes to print, our new irrigation system continues to be installed. The main irrigation ring main lines have been installed, the ring mains to each green will be completed by early September, then the teeing areas will have the new irrigation system connected. The final stage will see the fairways completed by the end of October. This new system will enable us to present the course to members in a different way to ever before. Match I would like to take the opportunity to congratulate all winners of major events held throughout 2009 and 2010. All winners are listed next column.
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Club Championships 2009 Martin Carmichael A Grade: A Reserve: Ryan Hobbs B Grade: Geoff Watkinson C Grade: Col Hughes Junior: Rowan Furlong Senior: Tony Pagliaro Colts: Stephan Bevan
Annual Report
Foursomes Championship 2009 A Grade: Rod McDonald & Mark Thomson B Grade: Klaus Lewandowski & Peter Weber C Grade: Barry Evans & David Mansley Mixed Foursomes 2010 Ashley Cramond & Nabil Abdul Mauri Greenhalgh Trophy 2010 Jan Conyers & Paul Scuglia Bruce Cooper Memorial Trophy Not yet played Holes In One From 3 June 2008 G McGhee D Bell L Bessant B Zubrycki S Chang E Cho T Cruise M J Lee M Johnston P Hill C Wright S Collins J Potts J South I Motala M Hogg J Lele J Colombo J Reynolds C Wittenberg C Northcott B Phillips
26/09/09 21/10/09 25/10/09 21/11/09 06/12/09 21/12/09 27/12/09 11/01//10 20/01/10 30/01/10 21/02/10 13/03/10 26/04/10 02/05/10 02/06/10 09/06/10 20/06/10 14/07/10 17/07/10 13/08/10 15/08/10 25/08/10
4th 4th 4th 4th 4th 4th 2nd 4th 17th 17th 11th 2nd 4th 2nd 2nd 4th 11th 11th 2nd 17th 11th 2nd
Lindsay Verdon
Captain
Castle Hill Country Club Limited ABN 62 000 085 423
Finance Report As the recovery from the global financial crisis continued, revenues grew by $147,069 (2.8%) over the previous year. Declining membership and members moving to cheaper categories saw subscriptions fall by 3.4% over the previous year. The fall in subscriptions was more than offset by new member entrance fees which grew by 78.3% over the previous year to $242,014. Other revenue movements for the year are detailed in Note 2 of the annual financial statements. The highlights being: • Visitor green fees up 5.3% to $203,043 • Corporate golf up by 9.9% to $187,992 • Cart income grew by 18% to $271,843 mainly due to the initiative from club management to offer cart hire to other golf clubs for their corporate days. • Food and beverage sales grew by 6.1% to $1,117,746 • Interest received declined by 28.9% to $97,861 reflecting the decline in interest rates nationally for the first six months of the financial year. Net profit for the year is reported at $161,487, which is up on last year ($29,510) as a result of; the increasing revenues, and the improved returns from the Perpetual Managed Fund which was up by $57,659 (15.7%) but remains $75,708 (15.1%) below the club’s initial investment.
Net cash generated from operating activities for the year at $629,964 increased by $272,095 over last year ($357,869). Capital expenditure for the year was $367,228 versus last year $813,290. However, the $350,000 approved by members for the upgrade of the air conditioning for the clubhouse has not been spent. Club management with the help of external engineers are determining the best way to improve climatic conditions in the clubhouse. Free cashflow after capital improved by $276,445 which is again a good result. The cash at the end of the financial year was $2,533,579 compared to last year $2,257,134. Maintaining our cash position in year 2010/2011 will be a challenge as the expenditure on the course irrigation and the air conditioning remain to be completed. I would like to thank the management of the club and the Finance Committee comprising David Geraghty, Robert Hickson, Stuart Fraser and Norman Nasser for their support and valued contributions throughout the year.
Roy Jones Treasurer
Total expenses for the year were $5,234,169 up 0.3% on last year ($5,219,077) but down 1.2% on budget ($5,299,619). Major increases in expenses from last year included: • Course Materials ($150,293); up $34,436 (29.7%) • Repairs & Maintenance ($92,084); up $25,749 (38.8%) • Utilities ($119,127); up $20,085 (20.3%) Course expenses at $1,363,256 (including depreciation) were only $2,989 above last year ($1,360,267) which was a great result as the recent members survey rated highly the quality of the course.
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
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Social Report 2010 has seen some changes to the social program at Castle Hill Country Club and it has been pleasing to note that the efforts of the Social Committee, Events Coordinator and the staff have been rewarded by strong attendances at most of the planned social functions. We have attempted to re-invigorate the monthly Friday night socials and have been pleased to have attracted 70 – 90 members and guests to these functions. Our early difficulties in serving meals from the Sprig Bar kitchen were overcome thanks largely to the enthusiastic involvement of the bar and service staff. The change to table service and a limited menu has resulted in a steady improvement in service and quality with several pleasant evenings and well satisfied attendees. We have tried to incorporate a 9 hole golf program with these social nights and while we were successful in attracting a number of golfers in the warmer weather, this plan was abandoned in winter due to a lack of support. We do intend to resume the 9 hole events with bistro meals, during spring … watch for the advertising.
Finally, allow me to point out that this year’s busy social program could not exist without the support of members or the energetic efforts of our bar and service staff. Special thanks must go to Mirrella Buckler our Events Coordinator, and her predecessor, Michaele Bradley for their contribution and organising abilities. Our thanks also to Duncan, Matt, and their staff of hard working ladies and gents, and to the musicians, casual bar and service staff, chefs and general organizers who have helped to make the current year a success socially at Castle Hill Country Club. Finally, I wish to acknowledge the contribution and support for the club made by the members of the Social Committee.
Graham Hayton
Director Chairman – Social Committee
Our core events, the wine tastings, Pro Am, Christmas in July, Charity Golf Day and Night Golf have all been enjoyed enthusiastically by those who have attended and will continue into the 2011 program of events. During the year, it was necessary to cancel two events because of a poor response and while we could have “taken a risk” and proceeded with the planning it was felt prudent to make the hard decision rather than incur booking penalties for late cancellation of musicians and the like. Members can assist the staff in avoiding future cancellations by booking early for an event. For our part, we will learn from these instances and improve our planning and implementation of advertising to give adequate time for your support for each event. The very recent introduction of our new Lounge Bar Menu has implications for our future development of social activities at Castle Hill Country Club. It is envisaged that the social scene will change with more regular socials incorporating fine food, live music, golfing activity and some dancing for all members of the family. The club’s Member Survey, though still being analysed at this stage, has influenced our thinking for the future of our social program. How far these changes and the new influences extend is entirely dependent on the membership and the amount of support each event receives. What can be said without doubt is that on current indications our “social future” is full of promise and good cheer. Between now and years end we will be hosting the 30 Year Members Cocktail Party, the Captains and Presidents Dinner, the club Major Presentation Night, Melbourne Cup Lunch, the Kids Christmas Party and of course our New Year’s Eve celebration and we look forward to record attendances at each of these events.
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Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Ladies Committee Report On behalf of the ladies committee I would like to present the 60th Annual report for your consideration. Results of Major Events for 2009 that had not been played before last years report: Club Champion Division 2 Champion Division 3 Champion
Darrie Nightingale Tammy Hayton Sharen Mitchell
Results of Major Events for 2010 Club Champion Division 2 Champion Division 3 Champion Foursomes Bronze Foursomes Fourball Knockout Harvey Memorial Trophy Silver Salver Bronze Salver Junior Champion Summer Cup
Jenni Pridmore Gillian Hislop Diane Schultz Julie Cannon & Lynne Papandrea Jan Conyers and Gail Mahony Tammy Hayton and Arelene Thorn Carolyn James Lauren Hibbert [Pennant Hills] Lesley Jenkins Alyx Kemp Marian Van Der Weegen
Congratulations to all the winners and also to everyone that competed in these events. Presentation of minor trophies will take place on our closing day Thursday, 25th November, and our major trophies will be presented at our Annual Dinner on Friday, 26th November. These are always special events so please try and attend. Congratulations to our Pennant Teams who all played well this year. Our Grade team consisting of Julie Cannon, Jan Harrison, Raina Laughton, Darrie Nightingale, Lynne Papandrea, Jenni Pridmore, Toni Smillie, Alison Storey and Marian Van Der Weegen. A wonderful effort. Thank you to the dedicated caddies for their time and effort during the year. This year we fielded a junior girls Encourage Shield team. The team consisted of Amy and Taryn Farrington, Alyx Kemp, Sarah King and Corynne Van Veen. The girls won their division but were unsuccessful in the finals. Congratulations to all the girls for their dedication and thank you to all the families for encouraging the girls and helping with transport etc. Thank you to Raina Laughton for coordinating the girl’s team. Claudia Lim was awarded the most improved player. Congratulations Claudia.
Our Friendship day this year will be held on the 7th October. Thank you in advance to all the members and business owners who have generously donated gifts for our major raffle. Without these donations, support for our charities The Prostate Foundation and Riding for the Disabled would be difficult to achieve. Thank you to the Friendship committee Lynne Booth, Jacqui Kahler, Bronwyn Burnett and Anne Phelan, who have worked very hard all year to make this day such a success. Also thank you to Sue Mulligan, Judyanne Thrower and Arelene Thorn for helping with the Friendship Committee. Thank you to all our ladies who have knitted, sewn, cooked etc for all their hard work. Our major sponsors for the ladies competitions have continued this year. Thank you to Robert Cliff Master Jeweller of Castle Towers, for their sponsorship of three $500 vouchers being for the Best Net Score in a medal round in 2010 for the three Divisions. Also, thank you to Mario Raymond Hair Salon of Baulkham Hills who sponsor our nearest the pin prize of a $50 voucher once a fortnight. Also to Dennis Byrne, a member of our club who has donated golf balls for nearest the pin on the alternate fortnight. Lastly to Contours Norwest for a monthly voucher entitling the winner to one month’s free membership and a personal training session at Contours Norwest. It is awarded for the Best Net Score in the monthly medal. Thank you to all our sponsors. To Karen in the golf office, congratulations on being presented with the Pride of Workmanship Award from Glenhaven Rotary this year. Karen deserves to win it every year as she works tirelessly all the time to make sure our golf games run smoothly. She is always available to help and never complains no matter what we ask of her. Unfortunately we have lost some long time members this year, when they each decided not to renew their membership. These ladies are Beryl Auld, Clem Fugar and Alice Howard. We wish them all the best of luck. Thank you to all the members and staff of Castle Hill Country Club for your help and support of the Ladies and the Ladies Committee.
Lorraine Wilson Lady President
The Goodwill Cup was played at Asquith with Asquith winning. Thank you to all the girls who played in that event. Our interclub match against Pennant Hills was played at Castle Hill this year with Castle Hill winning the match. This year we are joining with Bonnie Doon Golf Club for a friendly match to be held at Bonnie Doon on the 8th October. Ladies Open Day was held again in January. It was a huge success with clubs from city and country areas participating. Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
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Membership Report Description 7 Day Playing 7 Day Senior 6 Day Playing 6 Day Senior 5 Day Playing Junior Members Cadet Members Sub Cadet Members Country Members Non Playing Members House Members Corporate Members Life Members Special Members Ladies Promotion
2009 2010
476 93 261 38 199 10 32 10 42 93 9 7 3 5 9
452 100 245 48 190 12 35 4 28 121 9 10 3 5 8
Total Club Members Social Members
1287 1270 176 170
TOTAL Â As at 31st August 2010
1463 1440
Maintaining membership and attracting new members is undoubtedly one of the great challenges for golf clubs, around the country. As living costs increase and personal finances are stretched, we compete in a market that sees golf club membership as a luxury. In a busy world, many who are time poor shy away from golf because of the time our game consumes. At Castle Hill, we have had another challenging year with our membership with decline noted in some of the categories (see comparative data above). Taken overall however, we seem to have reduced the attrition rate and our losses in 2010, while regrettable, indicate a significant slowing down to those recorded in recent years. So that we are better informed as to our membership losses we have refined and implemented a definite exit strategy whereby members who do not renew are contacted by letter and finally with a follow-up phone call which serves two purposes: firstly to ensure that members fully understand each category of membership that could be applied to them and secondly to provide us as a club, with an information base about our offerings and their suitability and applicability to each member. It is only in this way that we will be well enough informed to attempt to meet the requirements of those who see themselves as potentially lost to our club. Significantly, the changes made to our Non Playing membership category, has now attracted 121 members as people who choose to retain their links with Castle Hill Country Club, use the clubhouse facilities but not play on the course. This has provided them with the time to assess their membership before making any final decision, or to recover their health while retaining the option to play again. Similarly, the new House membership allows full use of our practice facilities and clubhouse without playing rights which has appeal to some golfers working nearby.
We are happy that applications for new individual memberships continue to be received at a steady rate throughout the year for most categories and we have had recent additions to corporate membership as well. We have extended our member referral scheme to include additional benefits to existing members who refer a new player and our advertising of the scheme will be kept at the forefront of our effort over the next year. We will also continue to explore the potential of the increased commercial workforce in the Norwest Business precinct and plan to conduct another Norwest Open Day in March 2011. We area also happy to continue our relationship with property developers in the area as a potential source of new members, especially now that the Balmoral Estate really begins to expand. The membership committee this year has also undertaken a review of the Dress Code of the club with the twofold aim of aligning the rules for women and men more closely than before and giving due recognition to the changes in fashionable apparel that inevitably occur over time. These new changes will be communicated to members shortly and will be accompanied by a revision of the signage and photo boards related to the Dress Code that are throughout the clubhouse area. Finally, I would like to thank the members of the Membership Committee for the contribution to our tasks this year and for their commitment to the ongoing development of our club with special thanks to Sandra Turner who keeps the administration wheels of membership turning so smoothly.
Graham Hayton
Chairman – Membership Committee
At the time of writing we have achieved a membership attrition rate of 1% of playing members which compares quite favourably to last year.
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Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Directors’ Report Your Directors present their report on the Company for the financial year ended 30 June 2010.
Directors The names of each person who has been a director during the year and to the date of this report are: Name Roger Allsop – Resigned 19 October 2009 David Geraghty Keith Watson – Resigned 19 October 2009 Lindsay Verdon William Muter Robert Hickson Celestine Michel – Resigned 19 October 2009 Michael Roy Jones – Appointed 19 October 2009 Patrick Carr – Appointed 19 October 2009, Resigned 27 January 2010 Graham Hayton – Appointed 19 October 2009 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Company Secretary
After Balance Date Events
The following person has held the position of company secretary during the year and to date of this report: Stuart Norman Fraser – Bachelor of Arts (Human Movement Studies). Stuart Fraser has worked for the Castle Hill Country Club Limited for the past six and a half years, performing the role of Chief Executive Officer. Stuart was appointed company secretary on 1 March 2004.
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.
Principal Activities The principal activity of the company during the financial year was the operation of a golf club and it’s associated activities. No significant changes in the nature of the company’s activity occurred during the financial year.
Operating Results The profit of the company amounted to $161,487.
Dividends Paid or Recommended
Future Developments
The company expects to maintain the present status and level of operations and hence there are no likely changes envisaged in the company’s operations in the forseeable future.
Environmental Issues The company’s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory. The directors believe that the company has adequate systems in place for the management of its environmental requirements and are not aware of any breach of those environmental requirements as they apply to the company.
The company’s Constitution prohibits the payment of dividends.
Review of Operations The club’s Operating Profit of $161,487 is an increase of 447.23% from the previous year ($29,510). Revenue increased by 2.80% ($147,069), and operating costs increased by 0.29% ($15,092). Cash reserves at 30 June 2010 totalled $2,533,579. Capital expenditure for the year was $367,228.
Significant Changes in State of Affairs No significant changes in the company’s state of affairs occurred during the financial year.
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
9
Directors’ Report
continued
Information on Directors Roger Allsop Qualifications: Experience: Special Responsibilities: David Geraghty Qualifications: Experience: Special Responsibilities:
Keith Watson Qualifications: Experience: Special Responsibilities:
Lindsay Verdon Qualifications: Experience: Special Responsibilities:
William Muter Qualifications: Experience: Special Responsibilities:
Bachelor of Science, MBA Retired, formerly Operations Director. President Resigned 19/10/2009 Finance Committee member Planning and Development Committee member
Bachelor of Economics, Chartered Accountant General Manager and Director. Appointed 26/10/2004. President Appointed 19/10/2009. Finance Committee member Planning and Development Committee member Executive Remuneration Committee chairperson
Extensive sales experience Retired, formerly National Sales Manager. Captain Resigned 19/10/2009 Course Committee member Match Committee chairperson
Diploma of Architectural Drafting NSW Marketing Manager. Appointed 26/10/2004. Captain appointed 19/10/2009 Course Committee chairperson Match Committee chairperson Junior Development Committee chairperson Executive Remuneration Committee member
Robert Hickson Qualifications:
Experience: Special Responsibilities:
Celestine Michel Qualifications: Experience: Special Responsibilities: Michael Roy Jones Qualifications: Experience:
Special Responsibilities:
Qualifications: Experience:
Annual Report
Bachelor of Science, PHD in Science Senior Operations Executive. Director. Treasurer appointed 19/10/2009. Finance Committee Chairperson Membership/Social Committee member Executive Remuneration Committee member
Licensed Real Estate Agent Director Appointed 19/10/2009. Resigned 27/01/2010. Match Committee Member Course Committee Member Junior Development Committee Member
Graham Hayton Qualifications:
Experience: Special Responsibilities:
10
Masters in Project Management Director. Appointed 20/10/2008. Resigned 19/10/2009. Treasurer Finance Committee chairperson Membership/Social Committee member Planning and Development Committee member
Patrick Carr
Special Responsibilities: Retired, formerly General Manager. Appointed 26/10/2004. Director Course Committee member Match Committee member Junior Development Committee member
Bachelor of Engineering, Graduate Diploma in Business Management, Masters in Applied Finance Operations Director. Appointed 17/11/2003. Vice President appointed 19/10/9 Planning and Development Committee chairperson Finance Committee member Executive Remuneration Committee member
Bachelor Of Arts Graduate Diploma in Education Studies Director Appointed 19/10/2009. Membership/Social Committee chairperson Castle Hill Country Club Limited ABN 62 000 085 423
Directors’ Report
continued
Meetings of Directors
Auditor’s Independence Declaration
During the financial year, 13 meetings of directors were held. Attendances by each Director were as follows:
The lead auditor’s independence declaration for the year ended 30 June 2010 has been received and can be found on page 27 of the Annual Report.
Directors Meetings Director
No. Eligible to Attend
No. Attended
3 13 3 13 13 13 3 10 3 10
3 12 3 12 11 12 3 8 3 10
Roger Allsop David Geraghty Keith Watson Lindsay Verdon Robert Hickson William Muter Celestine Michel Michael Roy Jones Patrick Carr Graham Hayton
Indemnifying Officers or Auditor No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an auditor of the entity.
Signed in accordance with a resolution of the Board of Directors.
David Geraghty – Director
Michael Roy Jones – Director
Dated 25th day of August 2010
at Baulkham Hills
During the financial year the company has paid premiums to insure each of the directors against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director of the company, other than conduct involving a wilful breach of duty in relation to the company. The amount of the premium was $678 for each director.
Proceedings on Behalf of the Entity
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year.
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
11
Income Statement for the year ended 30 June 2010
Note 2010 2009 $ $
Revenue from operating activities
2
5,395,656
5,248,587
Employee benefits expense
(2,342,415)
(2,312,930)
3
(574,778)
(553,391)
Administration expenses
(186,516)
(195,155)
Other expenses
(2,130,460)
(2,157,601)
Profit before income tax
161,487
29,510
Income tax expense
–
–
Profit for the year
161,487
29,510
Other comprehensive income for the year, net of tax
–
–
Total comprehensive income for the year
161,487
29,510
Profit attributable to members of the entity
161,487
29,510
Depreciation and amortisation
Total comprehensive income attributable to members of the entity 161,487 29,510
The accompanying notes form part of these financial statements.
12
Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Balance Sheet as at 30 June 2010 Note 2010 2009 $ $ ASSETS CURRENT ASSETS Cash and cash equivalents 4 2,533,579 2,257,134 Trade and other receivables 5 57,899 87,096 Inventories 6 237,842 217,819 Other current assets 7 131,210 11,451 TOTAL CURRENT ASSETS 2,960,530 2,573,500
NON-CURRENT ASSETS Financial assets 8 424,292 366,633 Property, plant and equipment 9 28,353,824 28,561,374 TOTAL NON-CURRENT ASSETS 28,778,116 28,928,007 TOTAL ASSETS 31,738,646 31,501,507
CURRENT LIABILITIES Trade and other payables 10 1,181,023 1,125,668 Short term provisions 11 419,238 398,941 TOTAL CURRENT LIABILITIES 1,600,261 1,524,609
TOTAL NON-CURRENT LIABILITIES – TOTAL LIABILITIES 1,600,261 NET ASSETS 30,138,385
– 1,524,609 29,976,898
EQUITY Retained earnings 13 3,782,890 3,621,403 Reserves 12 26,355,495 26,355,495 TOTAL EQUITY 30,138,385 29,976,898
The accompanying notes form part of these financial statements.
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
13
Statement Of Changes in Equity For The Year Ended 30 June 2010
Asset Capital Retained Revaluation Profits Total Earnings Reserve Reserve $ $ $Â $
Balance at 1 July 2007
3,378,432
4,478,905
44,937,108
Profit attributable to the entity
251,276
251,276
Retrospective adjustment to leave provisions
(37,815)
(37,815)
Revaluation decrement Balance at 30 June 2008 Profit attributable to the entity Balance at 30 June 2009 Profit attributable to the entity Balance at 30 June 2010
3,591,893
37,079,771
(15,203,181) 4,478,905
29,947,388
29,510
29,510
3,621,403
21,876,590
(15,203,181)
4,478,905
29,976,898
161,487
161,487
3,782,890
21,876,590
21,876,590
4,478,905
30,138,385
The accompanying notes form part of these financial statements.
14
Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Cash Flow Statement for the year ended 30 June 2010
Note
2010
2009
$
$
Receipts from customers
5,197,863
7,414,088
Payments to suppliers and employees
(4,665,760)
(7,191,357)
Interest received
97,861
135,138
14(a)
629,964
357,869
Proceeds from sale of property, plant and equipment
13,709
30,650
Payment for property, plant and equipment
(367,228)
CASH FLOW FROM OPERATING ACTIVITIES
Net cash generated from operating activities CASH FLOW FROM INVESTING ACTIVITIES
Payment for investments
–
(813,290) –
Net cash used in investing activities (353,519) (782,640) Net (decrease) increase in cash held
276,445
Cash at the beginning of the financial year
2,257,134
2,681,905
Cash at the end of the financial year
2,533,579
2,257,134
14(b)
(424,771)
The accompanying notes form part of these financial statements.
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
15
Notes to the Financial Statements for the year ended 30 June 2010 Note 1 Statement of Significant Accounting Policies The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards including Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The financial report is for Castle Hill Country Club Limited as an individual entity, incorporated and domiciled in Australia. The following is a summary of the material accounting policies adopted by the entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of Preparation Reporting Basis and Conventions The financial report has been prepared on an accruals basis and is based on historical costs. It does not take into account changing money values or, except where stated, current valuations of non current assets. Cost is based on the fair values of the consideration given in exchange for assets.
Accounting Policies (a) Revenue Revenue from the sale of goods is recognised at the time of sale to members and guests. Revenue from the rendering of a service is recognised upon the delivery of the service to members and guests. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax (GST).
(b) Inventories Inventories are measured at the lower of cost or estimated replacement cost in the ordinary course of business.
(c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair values less, where applicable, accumulated depreciation and impairment losses.
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. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same classes of assets are charged against revaluation reserves directly in equity; all other decreases are charged to the income statement.
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 16
Annual Report
by directors 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.
Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a straight line or diminishing value basis over their useful lives to the entity 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: Buildings 2 – 10% Course Plant 5 – 33% Clubhouse Equipment 5 – 40% Poker Machines 10 – 33% Leased Equipment 15 – 20% The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset classes carrying amount is written down immediately to its recoverable amount if the assetís 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 or losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings.
(d) Leases Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the entity, are classified as finance leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual values. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.
(e) Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Castle Hill Country Club Limited ABN 62 000 085 423
Notes to the Financial Statements for the year ended 30 June 2010 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 stated at amortised cost using the effective interest rate method.
liabilities are not material and are to be absorbed as an overhead in the period in which the expense is incurred. Contributions are made by the entity to employee superannuation funds and are charged as expenses when incurred.
Held-to-maturity Deposits
Cash and cash equivalents include cash on hand, deposits held atcall with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.
These investments have fixed maturities, and it is the entity’s intention to hold these investments to maturity. Any held-tomaturity investments held by the entity are stated at cost.
Financial liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.
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 arms length transactions, reference to similar instruments and option pricing models.
Financial Instruments Impairment At each reporting date, the entity assesses whether there is objective evidence that a financial instrument has been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the assets fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the Income Statement.
(f) Impairment of Assets
(h) Cash and Cash Equivalents
(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 expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a net basis. In prior years, cash flows were presented in the cash flow statement inclusive of GST.
(j) Income Tax No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.
(k) Intangibles Software Software is recorded at cost. Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of between one and two years. It is assessed annually for impairment.
At each reporting date, the entity 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 assets fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the Income Statement. Where the future economic benefits of the asset are not primarily dependent upon the assets ability to generate net cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an asset class, the entity estimates the recoverable amount of the cash-generating unit to which the class of asset belongs.
(l) Provisions
(g) Employee Benefits
Key estimates – Impairment
Provision is made for the entity’s liability for employee benefits arising from services rendered by employees to Balance Sheet date. Employee benefits arising from wages and salaries, annual leave and long service leave have been measured at their nominal amount plus on costs. Employee entitlements for sick leave have not been provided for in the accounts. The Directors consider that the sick leave is nonvesting in the employees and therefore believe that any future Castle Hill Country Club Limited ABN 62 000 085 423
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.
(m) Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform to changes in presentation for the current financial year.
(n) Critical Accounting Estimates and Judgments 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. The entity assesses impairment at each reporting date by evaluation conditions specific to the entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost calculations performed in assessing recoverable amounts incorporate a number of key estimates.
Annual Report
17
Notes to the Financial Statements for the year ended 30 June 2010
Note 2: Revenue
Operating Activities Subscriptions Entrance Fees Visitors Green Fees Corporate Green Fees Competition Fees Cart Income Main Bar Sales Sprig Bar Sales Restaurant Bar Sales Professional Shop Sales Poker Machine Takings (Net) Interest Received Clubhouse Receipts Rental Income Gain on Perpetual Fund Investment Unused Bar credits
2010 $
2009 $
1,813,890 242,014 203,043 187,992 328,010 271,843 512,429 551,270 54,047 723,964 156,146 97,861 85,496 89,530 57,659 20,462 5,395,656
1,877,528 135,729 192,739 170,984 320,229 230,380 477,342 506,238 69,844 715,995 190,633 137,495 102,443 103,285 – 17,723 5,248,587
Note 3: Profit from Ordinary Activities
Profit from Ordinary Activities has been determined after: (a) Expenses Depreciation and Amortisation of: – Buildings – Plant & Equipment
Movement in Provisions Employee Benefits
(b) Significant Revenue and Expenses Revenue: Property, Plant & Equipment Proceeds on disposal
Note 4: Cash Assets
WBC Operating Account WBC Investment Maxi Account WBC Term Deposit Suncorp Metway Cash On Hand Automatic Teller Machine
Note 5: Receivables
Trade Receivables Other Receivables Security Deposits Interest Receivable
18
Annual Report
181,074 393,704 574,778
178,372 375,019 553,391
20,297
78,091
13,709
27,864
268,448 926,410 300,000 1,009,441 21,250 8,030 2,533,579
49,963 – 1,410 6,526 57,899
301,604 472,509 1,453,291 – 21,050 8,680 2,257,134
80,216 3,112 1,410 2,358 87,096
Castle Hill Country Club Limited ABN 62 000 085 423
Notes to the Financial Statements for the year ended 30 June 2010
Note 6: Inventories
Goods Held for Resale – at Cost
2010 $ 237,842
2009 $ 217,819
Note 7: Other Current Assets
Prepayments Current Non Current
29,894 101,316 131,210
11,451 – 11,451
Note 8: Financial Assets
Available-for-sale financial assets Perpetual Trustees Investment – at cost Add: reinvestment of distributions received Less: Diminution in market value
500,000 30,799 (106,507) 424,292
500,000 12,799 (146,166) 366,633
The Club made a long term investment in units in Perpetual Investment Management Limited Charitable and Community Investor Fund on 9 January 2008. The initial investment cost was $500,000 with a further $30,799 reinvested from fund earnings. Due to reductions in the value of units held by the Fund for the period 30 June 2010 the market value as at that date was $424,292. The movement in market value of the investment is shown in the income statement. The Club intends to retain this investment for the long term however as the Fund does not have a fixed maturity date, Accounting Standards require it to be classified as an available for sale financial asset.
Note 9: Property, Plant & Equipment
Freehold Land and Golf Course Improvements at Independent Valuation – 2008 Accumulated Depreciation – Improvements Club Buildings at Independent Valuation – 2008 Accumulated Depreciation Course Plant & Equipment at Cost Accumulated Depreciation Clubhouse Equipment at Cost Accumulated Depreciation Poker Machines at Cost Accumulated Depreciation
Total Property, Plant and Equipment
Castle Hill Country Club Limited ABN 62 000 085 423
19,355,849 9,398 19,346,451
19,274,338 2,582 19,271,756
7,727,391 359,446 7,367,945
7,727,391 178,372 7,549,019
2,443,430 1,635,224 808,206
2,400,461 1,503,913 896,548
2,612,370 1,793,713 818,657
2,429,585 1,615,477 814,108
195,711 183,146 12,565
195,712 165,769 29,943
28,353,824
28,561,374
Annual Report
19
Notes to the Financial Statements for the year ended 30 June 2010 Note 9: Property, Plant & Equipment (continued)
2010
2009
Movement in the carrying amounts for each class of Property, Plant and Equipment between the beginning and the end of the current financial year
$
$
Freehold Land and Golf Course Improvement Balance at the beginning of the year Additions Revaluation Depreciation – Improvements Carrying amount at the end of the year
19,000,000 274,338 – (2,582) 19,271,756
Club Buildings Balance at the beginning of the year Additions Revaluation Depreciation Expense Carrying amount at the end of the year
7,549,019 – – (181,074) 7,367,945
7,700,000 27,391 – (178,372) 7,549,019
Course Plant & Equipment Balance at the beginning of the year Additions Disposals Depreciation Expense Carrying amount at the end of the year
896,548 102,932 – (191,274) 808,206
895,555 195,988 – (194,995) 896,548
Clubhouse Equipment Balance at the beginning of the year Additions Depreciation Expense Carrying amount at the end of the year
814,108 182,786 (178,237) 818,657
679,491 290,988 (156,371)) 814,108
Poker Machines Balance at the beginning of the year Additions Depreciation Expense Carrying amount at the end of the year Total Balance at the beginning of the year Additions Revaluations Disposals Depreciation Expense Carrying amount at the end of the year
20
19,271,756 81,510 – (6,815) 19,346,451
Annual Report
29,943 – (17,378) 12,565 28,561,374 367,228 – – (574,778) 28,353,824
26,429 24,585 (21,071) 29,943 28,301,475 813,290 – – (553,391) 28,561,374
Castle Hill Country Club Limited ABN 62 000 085 423
Notes to the Financial Statements for the year ended 30 June 2010
2010 $
Trade Payables Members Subscriptions in Advance Charity Day Account Other Deposits
252,871 880,990 20,872 26,290 1,181,023
216,879 899,898 4,267 4,624 1,125,668
154,902 63,951 200,385 419,238
140,427 60,855 197,659 398,941
21,876,590 4,478,905 26,355,495
21,876,590 4,478,905 26,355,495
Note 10: Trade and Other Payables
2009 $
Note 11: Provisions
Employee Entitlements Long Sevice Leave Leave On Costs Annual Leave
Note 12: Reserves
Asset Revaluation Reserve Capital Profits Reserve
Note 13: Retained Surplus
Retained Surplus at beginning of financial year Profit from ordinary activities Retained Surplus at end of financial year
3,621,403 161,487 3,782,890
3,591,893 29,510 3,621,403
161,487
29,510
574,778 (57,659) (13,709)
553,391 75,903 (30,650)
29,197 (20,023) (119,759) 55,355 20,297 629,964
(34,073) 184 9,114 (323,601) 78,091 357,869
Note 14: Cash Flow Information
(a) Reconciliation of cash flow from operations with profit from ordinary activities Profit (Loss) from ordinary activities Non cash flows in profit from ordinary activities Depreciation Unrealised Loss (Gain) on Investment Net gain on disposal of fixed assets Changes in Assets and liabilities (Increase)/Decrease in trade and other receivables (Increase)/Decrease in inventories (Increase)/Decrease in other current assets Increase/(Decrease) in trade and other payables Increase/(Decrease) in short-term provisions (b) Reconciliation of Cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows: Cash on Hand and at Bank At call and short term deposits with banks
Castle Hill Country Club Limited ABN 62 000 085 423
297,728 2,235,851 2,533,579
331,334 1,925,800 2,257,134
Annual Report
21
Notes to the Financial Statements for the year ended 30 June 2010
Note 15: Interests of Key Management Personnel
The name of each person holding the position of Director of the club during the financial year is listed in the Directors Report.
No Director has entered into a material contract with the company since the end of the previous financial year and there were no material contracts involving directors’ interests existing at year end.
Directors’ Remuneration All Directors positions are honorary. The directors received no remuneration or retirement benefits from the Club.
Key Management Personnel The following were key management personnel of the company at any time during the reporting period:
Executive Management Stuart Fraser – Chief Executive Officer Duncan Walker – House Manager Martyn Black – Superintendent Transactions with Key Management Personnel The key management personnel remuneration included in “employee benefits expense” is as follows: Short term employee benefits Salaries, allowances and fringe benefits Post employment benefits Superannuation
2010 $
2009 $
436,546
403,910
42,228
36,965
Note 16: Related Party Transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. During the year the club commenced business dealings with a firm called “On-Pin GPS Golf Systems” whose Director, Alan Hickson is the brother of company Director Robert Hickson. Transactions with related parties: Other Related Parties – Purchases from On-Pin GPS Golf Systems 5,422 –
Note 17: Capital Commitments
Expenditure commitments arising from contract to supply and install a new Irrigation system
Payable; – Not later than 12 months
1,065,184
–
Note 18: Auditors Remuneration
Remuneration of the Auditor of the company for: – Auditing the financial report 17,120 – Preparation of statutory financial report 4,100 21,220
22
Annual Report
16,500 4,100 20,600
Castle Hill Country Club Limited ABN 62 000 085 423
Notes to the Financial Statements for the year ended 30 June 2010 Note 19: Segment Reporting
Castle Hill Country Club operates as a Golf Club, providing facilities for Golf and associated social activities.
Note 20: Member’s Guarantee
The company is limited by guarantee. If the company is wound up, the Constitution and Regulations state that each member is required to contribute a maximum of $2 each towards meeting any outstanding obligations of the company. At 30 June 2010 the number of members was 1,506 (1,547 at 30 June 2009).
Note 21: Poker Machine Entitlements
The company acknowledges that the Poker Machine Entitlements now have a value. The value of these entitlements is the market value determined by the trading of such entitlements. Clubs NSW has provided a deemed value of $13,000 for each entitlement. The club currently holds seventeen (17) poker machine entitlements. No amount for these entitlements has been provided for in the financial report of the company.
Note 22: Company Details
The registered office of the company is: Castle Hill Country Club Limited RMB 49 Windsor Road Baulkham Hills NSW 2153
Note 23 Financial Instruments (a) Financial Risk Management The company’s financial instruments consist mainly of deposits with banks, long-term investments, bank bill investments, accounts receivable and accounts payable. The main purpose of non-derivative financial instruments is to raise finance for company operations. The company does not have any derivative instruments at 30 June 2010. Financial Risks The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. (i) Interest rate risk The company exposure to interest rate risk arises predominantly from assets and liabilities bearing variable interest rates, as the company intends to hold fixed rate assets and liabilities to maturity. For further details on interest rate risk refer to Note 23(b). (ii) Liquidity risk The company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. (iii) Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance sheet and notes to the financial statements. The company does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the company.
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
23
Notes to the Financial Statements for the year ended 30 June 2010 Note 23 Financial Instruments (continued) (b) Interest Rate Risk The company’s expsoure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows: Weighted Average Effective Interest Rate
Floating Interest Rate
2010 %
2009 %
2010 $
2009 $
5%
7%
2,533,579
2,257,134
Fixed Interest Rate Maturing Within Year 2010 $
2009 $
Fixed Interest Rate Maturing 1 to 5 Years 2010 $
2009 $
Non Interest Bearing 2010 $
Total
2009 $
2010 $
2009 $
2,533,579
2,257,134
Financial Assets Cash & Cash Equivalents Investments Trade & Other Receivables Total Financial Assets
424,292
366,633
424,292
366,633
–
–
57,899
87,096
57,899
87,096
2,533,579
2,257,134
482,191
453,729
3,015,770
2,710,863
1,181,023
1,125,668
1,181,023
1,125,668
–
–
1,181,023
1,125,668
Financial Liabilities Trade & Other Payables Short Term Borrowings
–
–
Total Financial Liabilities
–
–
–
–
1,181,023
1,125,668
(c ) Net Fair Values The net fair values of listed investments have been valued at the quoted market bid price at balance date adjusted for transaction costs expected to be incurred. For other assets and other liabilities the net fair value approximates their carrying value. No financial liabilities are readily traded on organised markets in standarised form other than listed investments. Financial assets where the carrying amount exceeds net fair values have not been written down as the company intends to hold these assets to maturity. The agregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and in the notes to the financial statements.
24
Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Directors’ Declaration The Directors of the entity declare that: 1. The financial statements and notes, as set out on pages 12 to 24, are in accordance with the Corporations Act 2001: (a) comply with Accounting Standards and the Corporations Regulations 2001; and (b) give a true and fair view of the financial position as at 30 June 2010 and of the performance for the year ended on that date of the company. 2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors.
............................................................................... David
Geraghty – Director
...............................................................................
Michael Roy Jones – Director
25th August 2010
Dated:....................................................................
Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
25
Independent Audit Report
To the Members of Castle Hill Country Club Limited SCOPE
The financial report and Directors’ responsibility The financial report comprises the balance sheet, income statement, cash flow statement, statement of changes in equity, a summary of significant accounting policies and other explanatory notes and the Directors’ declaration for Castle Hill Country Club Limited for the financial year ended 30 June 2010 as set out on pages 12 to 25. The Directors of the company are responsible for the preparation and true and fair presentation of the financial report in accordance with Accounting Standards in Australia and the Corporations Act 2001. This includes responsibility for the maintenance of adequate financial records and internal controls that are designed to prevent and detect fraud and error, and for the accounting policies and accounting estimates inherent in the financial report
Audit Approach
We have conducted an independent audit of the financial report in order to express an opinion on it to the members of the company. Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the financial report is free of material misstatement. The nature of an audit is influenced by factors such as the use of professional judgment, selective testing, the inherent limitations of internal controls, and the availability of persuasive rather than conclusive evidence. Therefore, an audit cannot guarantee that all material misstatements have been detected. We performed procedures to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards in Australia and the Corporations Act 2001 so as to present a view which is consistent with our understanding of the company’s financial position and performance as represented by the results of it’s operations, changes in equity and cash flows. Our procedures included examination, on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and the evaluation of accounting policies and significant accounting estimates made by the Directors. While we considered the effectiveness of management’s internal controls over financial reporting when determining the nature and extent of our procedures, our audit was not designed to provide assurance on internal controls. The audit opinion expressed in this report has been formed on the above basis.
Audit Opinion
In our opinion, the financial report of Castle Hill Country Club Limited is in accordance with the Corporations Act 2001, including: (a)
giving a true and fair view of the company’s financial position as at 30 June 2010 and of it’s performance for the year ended on that date; and
(b)
complying with Accounting Standards in Australia and the Corporations Regulations 2001.
D A STRATI & ASSOCIATES Certified Practising Accountants Domenic Strati Level 3, 376 Bay Street Brighton Le Sands NSW 2216 Dated: 25th August 2010
26
Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Auditor’s Independence Declaration
Under Section 307c Of The Corporations Act 2001 I declare that, to the best of my knowledge and belief, during the year ended 30 June 2010 there have been: a)
no contraventions of the auditor independence requirements as set out in 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.
Name of Firm
D A STRATI & ASSOCIATES
Name of Partner
Domenic Strati
Date 17th August 2010 Address
Castle Hill Country Club Limited ABN 62 000 085 423
Level 3, 376 Bay Street BRIGHTON LE SANDS NSW 2216
Annual Report
27
Compilation Report
To the Members of Castle Hill Country Club Limited SCOPE
On the basis of information provided by the Directors of Castle Hill Country Club Limited, we have compiled in accordance with APS 9: Statement on Compilation of Financial Reports the special purpose report, being a Detailed Profit and Loss Statement of Castle Hill Country Club Limited for the year ended 30 June 2010. The specific purpose for which the special purpose financial report has been prepared is to provide private information to the Directors. The extent to which Accounting Standards and other mandatory professional reporting requirements have or have not been adopted in the preparation of the special purpose financial report is set out in Note 1. The Directors are solely responsible for the information contained in the Detailed Profit and Loss Statement and have determined that the accounting policies used are consistent and are appropriate to satisfy the requirements of the Directors. Our procedures use accounting expertise to collect, classify and summarise the financial information, which the Directors provided, into a financial report. Our procedures do not include verification or validation procedures. No audit or review has been performed and accordingly no assurance is expressed. To the extent permitted by law, we do not accept liability for any loss or damage, which any person, other than the Company, may suffer arising from any negligence on our part. No person should rely on the Detailed Profit and Loss Statement without having an audit or review conducted. The Detailed Profit and Loss Statement was prepared for the benefit of the Company and its members and the purpose identified above. We do not accept responsibility to any other person for the contents of the Detailed Profit and Loss Statement.
D A STRATI & ASSOCIATES Certified Practising Accountants Domenic Strati Brighton Le Sands Dated this 25th day of August 2010
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Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Detailed Profit and Loss Statement for the year ended 30 June 2010
2010
2009
Income Note
$ $ Subscriptions 1,813,890 1,877,528 Entrance Fees 242,014 135,729 Visitors Green Fees 203,043 192,739 Corporate Green Fees 187,992 170,984 Competition Fees 328,010 320,229 Cart Income 271,843 230,380 Main Bar Trading 512,429 477,342 Restaurant Bar Trading 54,047 69,844 Sprig Bar Trading 551,270 506,238 Professional Shop Trading 723,964 715,995 Unused Bar Credit 20,462 17,723 Poker Machines (Net) 156,146 190,633 Interest Received 97,861 137,495 Profit on Sale of Fixed Assets 13,709 27,864 Rent Received 89,530 103,285 Sundry Income 24 71,787 74,579 Unrealised Profit on Investment 57,659 0 Net Operating Revenue 5,395,656 5,248,587
Expenses
Course 25 1,363,256 1,360,267 Competition 26 355,518 416,485 Main Bar Trading 27 572,927 560,814 Restaurant Bar Trading 51,239 69,673 Sprig Bar Trading 28 472,849 421,114 Poker Machines 29 29,449 33,700 House 30 862,986 797,471 Administration 31 732,135 753,750 Professional Shop 32 793,810 729,900 Unrealised Loss on Investment 0 75,903 Net Operating Expenses 5,234,169 5,219,077 Operating Profit (Loss)
161,487
29,510
These financial statements should be read in conjunction with the attached Compilation Report. Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
29
Notes to the Detailed Profit and Loss Statement for the year ended 30 June 2010
2010
2009
Note 24: Sundry Income $ Keno Commissions 2,971 Locker Fees 5,857 Room Hire 14,393 Sponsorship Income 24,136 Training Rebates – Other Food Income – Other Sundry Income 24,430 71,787 Note 25: Course Expenditure
Wages and Associated Costs Depreciation Expense Repairs & Maintenance Materials Course Improvements Other Costs
Note 26: Competition Expenditure
Wages and Associated Costs Ball Competition & Trophies Expense Golf Cart Costs Affiliation Fees Other Costs
Note 27: Main Bar Expenditure
Wages and Associated Costs Cost of Goods Sold Repairs & Maintenance Other Costs
Note 28: Sprig Bar Expenditure
Wages and Associated Costs Cost of Goods Sold Repairs & Maintenance Other Costs
Note 29: Poker Machine Expenditure
Depreciation Expense Repairs and Maintenance Other Costs
$ 3,018 6,318 8,809 19,500 5,773 1,802 29,359 74,579
826,054 197,015 67,113 150,293 76,987 45,794 1,363,256
801,636 197,577 80,184 115,857 107,653 57,360 1,360,267
95,051 146,328 41,732 44,712 27,695 355,518
99,628 146,917 93,433 45,273 31,234 416,485
317,467 206,348 5,733 43,379 572,927
306,844 205,835 4,980 43,155 560,814
203,680 236,272 12,171 20,726 472,849
197,371 201,096 3,952 18,695 421,114
17,377 4,877 7,195 29,449
21,071 5,633 6,996 33,700
These financial statements should be read in conjunction with the attached Compilation Report
30
Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423
Notes to the Detailed Profit and Loss Statement for the year ended 30 June 2010
Note 30: House Expenditure Wages and Associated Costs Depreciation Expense Repairs & Maintenance Insurance Utilities Rates Cleaning Services Security Costs Members Benefits & Associated Costs Function Expenses Service Contracts Other Costs
2010 2009 $ $ 51,385 64,888 323,290 297,647 92,084 66,335 70,449 66,107 119,127 99,042 29,362 31,309 20,745 18,456 27,197 26,357 30,651 25,051 30,396 29,503 34,147 38,588 34,153 34,188 862,986 797,471
Note 31: Administration Expenditure Wages and Associated Costs Audit & Professional Fees Legal Expenses Printing, Postage & Office Supplies Telephone Bank, EFTPOS Charges & Interest Computer Charges Subscriptions & Licences Directors & CEO Expenses Other Costs
545,619 33,378 4,335 34,584 19,544 22,247 25,666 10,816 10,954 24,992 732,135
558,595 24,121 1,740 41,740 19,444 20,345 32,382 7,596 8,469 39,318 753,750
303,159 450,308 40,343 793,810
283,968 421,211 24,721 729,900
Note 32: Professional Shop Expenditure Wages and Associated Costs Cost of Goods Sold Other Costs
These financial statements should be read in conjunction with the attached Compilation Report Castle Hill Country Club Limited ABN 62 000 085 423
Annual Report
31
Nomination for Board of Directors The following nominations have been received for positions as Directors of Castle Hill Country Club Limited:
Mr Roger Allsop
President Elected unopposed
Mr Terry Greenhalgh
Vice President Elected unopposed
Mr Lindsay Verdon
Captain Elected unopposed
Mr Bill Muter Vice Captain Elected unopposed Mr Paul Moynihan Treasurer Elected unopposed
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Mr Glen Byrnes
Director Elected unopposed
Mr Alann James
Director Elected unopposed
Annual Report
Castle Hill Country Club Limited ABN 62 000 085 423