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Notes to the Financial Statements for the year ended 30 June 2022
The financial report is for Pennant Hills Golf Club Limited as an individual company, incorporated and domiciled in Australia. Pennant Hills Golf Club Limited is a company limited by guarantee.
Nature of Operations
Pennant Hills Golf Club’s principal activity was to provide golf facilities to members.
Basis of Preparation
The financial report is a general-purpose financial report that has been prepared in accordance with Australian Accounting Standards – Tier 2 Simplified Disclosures, Australian Accounting Interpretations, the Corporation Act 2001 and the Registered Clubs Amendment Act 2006. Pennant Hills Golf Club Limited is a not-for-profit entity for the purpose of preparing financial statements.
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. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.
The financial report has been prepared using the measurement bases specified by the Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are described in the accounting policies below.
The financial report was authorised for issue on the 31st August 2022 by the board of directors.
Net Current Liability Position
As at 30 June 2022 the company has a net current liability position of $2,414,916 (2021: $2,550,218) primarily due to the large balance of subscriptions paid in advance. The subscriptions paid in advance for the 2023 year are not refundable and will be recognised as revenue over the 2023 financial year. The company has access to a bank facility of $2.95 Million (2021: $2.95 Million) which it can draw down on when cash flow requires it. The facility will expire in July 2025. More details on this facility are included in Note 11 to these financial statements. Based on these factors the directors are of the opinion that the company will be able to pay its debts when they fall due.
Accounting Policies (a) Income Tax
No provision for income tax has been raised as the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.
(b) Inventories
Inventories are measured and carried at the lower of cost and current replacement cost.
(c) Property, Plant and Equipment
(i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of
(c) Property, Plant and Equipment (continued)
dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Cost also may include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings.
(ii) Subsequent Costs The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
(iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated.
The estimated useful lives for the current and comparative periods are as follows: Buildings 40 years Plant and equipment 3 - 20 years
Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.
(d) Leases
Where the Company is a lessee lease payments for operating leases, where substantially all the risks and benefits remain with the lessor are accounted for in accordance with AASB16 – Leases. At inception the present value of the leased asset is capitalised as an asset to be depreciated over the term of the lease. A corresponding lease liability is recorded and shown in Note 11 Borrowings. As lease payments are made the periodic principal reduction is charged to the lease liability and a charge for interest is expensed in the period in which the payment is incurred.
(e) Impairment of Assets
At each reporting date, the Company 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 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 excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.
(e) Impairment of Assets (continued)
Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
(f) Employee Benefits
Short-term Employee Benefits Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.
Other long-term Employee Benefits The Company’s liabilities for long service leave are included in other long-term benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees.
The expected future payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur.
The Company presents employee benefit obligations as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period, irrespective of when the actual settlement is expected to take place.
(g) Provisions, Contingent Liabilities and Contingent Assets
Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.
Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.
No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.
(h) Revenue and Other Income
Revenues are recognised at fair value of the consideration received.
Revenue from sales of goods comprises revenue earned from the provision of food and beverage facilities, and the sale of golf equipment. Revenue is recognised when the goods are provided.
Revenue from rendering services comprises revenue services to Members and other patrons of the Company.
(h) Revenue and Other Income (continued)
Revenue from rental income relating to the telecommunications tower lease is recorded on a straightline basis over the term of the lease.
PHGC Foundation donations and contributions made are credited to the PHGC Foundation in the year in which they are made.
All revenue is stated net of the amount of goods and services tax (GST).
(i) Borrowing Costs
Borrowing costs other than those that relate to the acquisition of qualifying assets are recognised in income in the period in which they are incurred.
(j) Goods and Services Tax
Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST). Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented in the Cash Flow Statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(k) Subscriptions in Advance
The Subscriptions in advance balance in Note 12 consists of 2023 membership subscriptions received prior to 30 June.
(l) Deferred Income
The liability for deferred income relating to unutilised amounts of telecommunications tower rental received on the condition that specified conditions are fulfilled. Where the amount received is in respect of rental which is to be provided over a period that exceeds twelve (12) months after the reporting date, the liability is discounted and presented as non-current.
Deferred income relating to entrance or joining fees paid by new members are recorded as deferred income and shown in Note 10. Entrance fees are released to income over 10 years which is the deemed average period of membership. If a member leaves within the 10-year period the balance of joining fees deferred is released and shown as entrance fee income in the year of departure.
(m) Comparative Figures
When 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 Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are assessed using value-in-use calculations which incorporate various key assumptions.
(o) Government Grants
Government grants received from State and Federal governments comprising COVID-19 stimulus measures of Payroll Tax relief, Cash Boost, Jobkeeper, Jobsaver and BAC and CAC Apprentice funding are recorded as grant income when received or receivable. Expenses related to these grants are shown in expenses by function.
(p) Financial Instruments
Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument, and are initially measured at fair value adjusted by transaction costs.
Financial assets are derecognised when the contractual rights to cash flows from the financial asset expire, or when the financial asset and all subsequent risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged cancelled or expires.
Classification and measurement of financial assets For the purposes of subsequent measurement financial assets of the Company are classified as loans and receivables. All financial assets are subject to review for impairment at least at each reporting date to determine if there is objective evidence that a financial asset is impaired. All income and expenses relating to financial assets that are recognised in profit and loss are presented within finance costs or finance income except for impairment of trade receivables which is presented within other expenses.
Loans and receivables are non-derivative financial assets with fixed or determinable payments. After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect is immaterial. The Company’s trade and other receivables fall into this category of financial instruments.
Classification and measurement of financial liabilities The Company’s financial liabilities include trade and other payables.
Financial liabilities are measured subsequently at amortised cost using the effective interest method. All interest related charges, and if applicable, changes in an instruments fair value that are reported in profit and loss are included within finance costs or finance income.
(q) New and revised standards that are effective for these financial statements
AASB 1060 General Purpose Financial Statements - Simplified Disclosures For-Profit and Not-forProfit Tier 2 Entities became effective from 1 July 2021. The application of the standard does not materially affect the presentation or disclosures in the financial statements.
The Company previously prepared general purpose financial statements under Tier 2 - Reduced Disclosure Requirements. There were no transition adjustments other than a few disclosure changes on the adoption of Australian Accounting Standards – Tier 2 Simplified Disclosures.
The Company has elected not to present comparative information in the notes to these financial statements where comparable information was not disclosed in the company's most recent previous general purpose financial statements.
NOTE 2: REVENUE & OTHER INCOME
SALES REVENUE
Bar Sales Catering Sales
Pro Shop Sales
TOTAL SALES REVENUE
SERVICE REVENUE & OTHER INCOME
Golf Services
Competition Fees & Member Playing Fees Visitor & Corporate Fees
Pro Shop Services
Hire of Carts Pro Shop Lessons and Equipment Storage, Hire and Repairs
Bar, Catering & Function Services
Room and Equipment Hire & Other Function Income
House Services
Locker Rentals
Other Operating Income
Members’ Subscriptions & Affiliation Fees Interest Received Finance Fees Received Other Income
Non-Operating Income
Entrance Fees Telecommunications Tower Rent Unredeemed levy Vouchers
TOTAL SERVICE REVENUE & OTHER INCOME
Government Grants
NSW Payroll Tax Relief – COVID 19 Stimulus Federal Cash Boost Relief – COVID 19 Stimulus Federal & State JobSaver/Jobkeeper Relief –COVID 19 Stimulus Federal BAC Apprentice Funding – COVID 19 Stimulus
Legal Settlements
Legal Settlement
2022 2021 $ $
661,861 974,930 604,210 880,619 1,266,071 1,855,549 612,718 632,377 1,878,789 2,487,926
363,443 413,824 190,698 307,070 554,141 720,894
124,128 215,403 214,213 234,145 338,341 449,548
15,535 21,371
4,003 3,983
3,442,201 3,145,118 - 1 39,760 51,395 2,652 2,841 3,484,613 3,199,355
108,715 96,526 36,800 48,412 8,394 10,059 153,909 154,997
4,550,542 4,550,148
34,397 - - 50,000 286,030 300,000 78,003 46,086 398,430 396,086
300,000 - 300,000 -
TOTAL REVENUE & OTHER INCOME
7,127,761 7,434,160
NOTE 2: REVENUE & OTHER INCOME (continued)
Other Income
Gain on Disposal of Property, Plant and Equipment Members’ Contributions to Course Development Fund Ex-Serviceman’s Donation to Memorial Gates Fund
2022 2021 $ $
21,078 - 92,616 107,759 5,000 1,500 118,694 109,259
NOTE 3: INCLUDED IN DETERMINING SURPLUS FOR THE YEAR
Remuneration of the Auditor for:
- Auditing the Accounts - Taxation Services Provided by Related Practice of Auditor
Depreciation of:
Building Plant, Equipment & Course Irrigation System Total Depreciation and Amortisation
Impairment of Assets
Write Down in Clubhouse Assets
Interest Paid & Payable
Bank Loans Equipment Finance
Cost of Sales
Bar Catering
Pro Shop
Cost of Rendering Services – Pro Shop
Cart Running and Hire Costs Repair and Service Costs & Teaching Commission
Member Benefits
Member Outlander Benefits Golf Services – Visitor Passes & Business Golf 20,895 19,900 2,097 1,300
265,215 261,741 380,768 341,208 645,983 602,949
32,511 56,038 7,041 11,307 39,552 67,345
298,313 391,895 293,478 351,732 591,791 743,627 419,520 433,201 1,011,311 1,176,828
21,698 42,820 89,637 115,811 111,335 158,631
52,607 - 50,791 76,050 103,398 76,050
NOTE 4: TRADE AND OTHER RECEIVABLES
Trade Receivables Provision for Impairment of Receivables
2022 2021
849,674 859,019 (420) (420) 849,254 858,599
Current trade receivables are non-interest bearing. A provision for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts have been included in the other expenses item.
(ii) Provision for Impairment of Receivables Opening Balance Charge for the Year
Amounts Written Off
Closing Balance 1-Jul-20 30-Jun-21
$ $ $ $ Trade Receivables 8,024 3,064 (10,668) 420
Opening Balance Charge for the Year
Amounts Written Off
Closing Balance 1-Jul-21 30-Jun-22
$ $ $ $ Trade Receivables 420 - - 420
NOTE 5: INVENTORIES
Finished Goods – at Cost
NOTE 6: OTHER ASSETS
Prepayments Government Grants Receivable
2022 2021 $ $
202,464 213,621
149,158 124,267 53,099 41,762 202,257 166,029
NOTE 7: CORE PROPERTY, PLANT & EQUIPMENT
Freehold Land Buildings Plant and Equipment
Capital Work in Progress Total $ $ $ $ $
Balance at 1 July 2020 9,500 7,926,673 2,687,878 6,803 10,630,854 Additions at Cost - - 206,407 196,834 403,240 Disposals - - - - - Transfers - - 6,803 (6,803) - Depreciation Expense - (261,741) (341,208) - (602,949)
Carrying Amount at 30 June 2021 9,500 7,664,932 2,559,879 196,834 10,431,145
Additions at Cost - 70,050 400,539 40,677 511,266 Disposals at Cost - - 215,378 - 215,378 Disposals Accumulated Depreciation - - (215,378) - (215,378) Transfers - - 196,834 (196,834) - Depreciation Expense - (265,215) (380,768) - (645,983)
Carrying Amount at 30 June 2022 9,500 7,469,767 2,776,484 40,677 10,296,428
In accordance with Section 41J of the Registered Clubs Amendment Act 2006 the Directors have determined that all freehold land and buildings held by the Club forms part of the Club’s premises and the facilities provided by the Club are for the use of its members and is therefore core property.
The Valuer General land value at 1/7/19 was $4.94 million. There has not been an updated valuation issued as at the date of this report.
Included within the carrying amount of Plant & Equipment is $43,245 (2021: $64,192) of financed equipment and $32,085 (2021: $82,771) of capitalised operating leases. Refer to Note 17 for further details of operating leases and financed equipment.
Refer to Note 11 for details of security over property, plant and equipment.
NOTE 8: TRADE AND OTHER PAYABLES
Trade Payables Sundry Payables and Accrued Expenses
Trade and Other Payables
207,761 439,317 577,229 572,005 784,990 1,011,322
A provision has been recognised for employee benefits relating to long service leave for employees. In calculating the present value of future cash flows of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been included in Note 1 (f).
NOTE 9: PROVISIONS Current
Short Term Employee Benefits
Employee Benefits – Annual Leave
134,674 110,679 Employee Benefits – Long Service Leave 28,012 42,280 162,686 152,959
Non-Current
Long Term Employee Benefits
Employee Benefits - Long Service Leave 29,622 23,902
NOTE 10: DEFERRED INCOME
Current
Deferred Income – Communications Tower Deferred Income – Entrance Fees
Non-Current
Deferred Income – Communications Tower Deferred Income – Entrance Fees
2022 2021 $ $
36,800 36,800 70,906 65,432 107,706 102,232
591,623 628,423 384,630 316,804 976,253 945,227
In the 2015 financial year the Company leased the telecommunications tower site for 25 years. Rental for the 25 years has been received up front. In determining the correct treatment for the transaction the Company has taken a view that the monies received are in the nature of a receipt of future rental income. Consistent with the Company’s treatment of other deferred income received in advance the amount received is being released to revenue on a straight-line basis over the full term of the lease period. Deferred income received which will not be released in the next year is treated as long term deferred income. Entrance fees received are deferred and released over 10 years. In the event of a member resigning within the 10 years the balance of a member’s entrance fee not previously recognised is released.
NOTE 11: BORROWINGS
Current
Commercial Loan - Equipment Leases – Equipment
2022 2021 $ $
22,350 21,209 35,294 54,814 57,644 76,023
Non-Current
Bank Loan Commercial Loan - Equipment Leases - Equipment - 600,000 24,499 46,848 1,084 36,379 25,583 683,227
Facilities
In the current year the Company’s NAB borrowing facility of $2.95 Million was renegotiated. The facility will reduce to $2.35 Million in April 2023, $1.75 Million in April 2024 and $1.15 Million in April 2025. The facility expires in July 2025.
The Company has previously entered into four Commercial Loans for the purchase of course equipment. The term of each of these arrangements is five years and expire between November 2023 and June 2024.
The Company has operating leases for carts and office printers being recorded as lease borrowings.
Security
The Company’s primary banker holds registered first mortgages and floating charges over the assets and uncalled capital of the Company. The Company’s equipment financier holds a security interest over the equipment purchased for the duration of the financing agreement.
NOTE 12: OTHER LIABILITIES
Current
Subscriptions in Advance Food and Beverage Levy in Advance Functions in Advance Unredeemed Vouchers Other
2022 2021 $ $
2,564,159 2,434,218 235,490 191,400 28,630 33,209 12,113 9,199 23,238 28,149 2,863,630 2,696,175
The Pennant Hills Golf Club Foundation is a fund operating under a deed of trust and administered by nominated trustees in accordance with the deed. The fund raises income by way of gift, donation, legacy, bequest or otherwise. The fund currently has three specific projects registered with the Australian Sports Foundation to receive donations for the development of promising junior members, the build of the second entry memorial gates and the build of an indoor teaching facility. The Club has established a “Pennant Hills Golf Club Foundation Reserve” whereby the monies raised by way of donations from members and contributions from Club activities are held specifically for the foundation. The foundation funds are solely for the benefit of the nominated projects where specifically identified for the project purpose or where not identified as general funding for purposes identified by the trustees. Unspent monies at the close of the financial year being the opening position for the year plus the contributions and less expenditure are represented in the Pennant Hills Foundation Reserve in the Members funds. The underlying cash is held in a separate bank account and recorded in Cash and cash equivalents. During the year net of contributions of $32,600 (2021: $35,375) together with the balance of the Memorial Gates Reserve were transferred into the reserve.
Kendal Binns Junior Memorial Indoor Teaching
Total PHGC Fund Gates Facility General Foundation $ $ $ $ $
Balance at 1 July 2020
25,336 - - - 25,336
Transfer from Memorial Gates reserve - 17,000 - - 17,000 Donations and ASF grants received 22,617 3,437 22,649 9,150 57,853 Foundation funds expended (19,134) - - (2,503) (21,637) GST Recoveries/(payments) 744 (162) (1,651) 228 (841)
Balance at 30 June 2021
29,563 20,275 20,998 6,875 77,711
Transfer from Memorial Gates reserve - 5,000 - - 5,000 Donations and ASF grants received 12,299 26,634 57,552 3,600 100,085 Government development grant 55,000 55,000 Foundation funds expended GST Recoveries/(payments) (15,813) - (100,160) (6,769) (122,742) 1,085 (816) (627) 615 257
Balance at 30 June 2022 27,134 51,093 32,763 4,321 115,311
NOTE 14: RELATED PARTIES
(a) Key Management Personnel
Key management personnel of the Company are those persons having authority and responsibility for planning, directing and controlling activities of the Club.
Short-Term Benefits
Post- Employment Benefit Total $ $ $
2021
Total Compensation 646,499 - 646,499
2022
Total Compensation 615,241 6,504 621,745
NOTE 14: RELATED PARTIES (Continued)
(b) Transactions with Related Parties
During the year the Company incurred expenses related to future course development from a firm over which one of the directors exercises significant influence. The amount billed for this service amounted to $9,652 (2021: $9,000), based on normal market rates and was fully paid as of the reporting date. Apart from transactions related to activities as members which include golf, golf services and food and beverage operations the company has incurred no other material transactions with related parties.
NOTE 15: NOTES TO THE STATEMENT OF CASH FLOWS
a) Reconciliation of Cash
For the purposes of the statement of cash flows, 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 short-term borrowings in current liabilities on the balance sheet
2022 2021 $ $
Cash Assets
b) Reconciliation of Cash Flow from Operations . . with Net Surplus for the Year
Net Surplus for the Year
Add/(Less) Items Classified as Investing/ Financing Activities: Profit on Sale of Non-Current Assets
Add/(Less) Non-Cash Items: Depreciation Provision for Employee Benefits Amortisation of Tower Rental Income Received in Advance Amortisation of Entrance Fees Received in Advance Net Cash Provided by Operating Activities before Change in Assets & Liabilities 307,765 250,244
621,483 854,422
(21,078) -
645,983 602,949 15,447 4,649 (36,800) (36,800) 73,300 68,020
1,298,335 1,493,240
Change in Assets and Liabilities (Increase)/Decrease in Receivables (Increase)/Decrease in Inventories (Increase)/Decrease in Other Assets Increase/(Decrease) in Accounts Payable Increase/(Decrease) in Other Liabilities
Cash Flow from Operations
9,345 (150,457) 11,157 (61,808) (36,228) 102,191 (226,332) 166,423 167,455 257,126
1,223,732 1,806,715
NOTE 16: FAIR VALUE MEASUREMENT
Net Fair Values
Fair Value Estimation
The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the balance sheet. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below.
2022 2021 Footnote Net Carrying Value Net Fair Value Net Carrying Value Net Fair Value $ $ $ $
Financial Assets
Cash and Cash Equivalents (i) 307,765 307,765 250,244 250,244 Trade and Other Receivables (i) 849,254 849,254 858,599 858,599 Total Financial Assets 1,157,019 1,157,019 1,108,843 1,108,843
Financial Liabilities
Trade and Other Payables (i) 784,990 784,990 1,011,322 1,011,322 Borrowings (i) 83,227 83,227 759,250 759,250 Total Financial Liabilities 868,217 868,217 1,770,572 1,770,572
The fair values disclosed in the above table have been determined based on the following methodologies: (Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in Inature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating )to annual leave and deferred income which is not considered a financial instrument.
Borrowings includes $Nil million drawn against a current $2.95 million bank facility. The current drawings interest period applies until 22 July 2022. Interest will be reset at the time of the next drawdown for a period of between 30 and 180 days at the discretion of the Company.
Borrowings also includes commercial loan equipment finance for six items of course equipment. Equipment loan finance is taken over a period of five years. The carrying value of equipment finance does not include future financing costs and as such carrying value is equivalent to fair value.
The Company borrowings includes the principal amounts outstanding on leases of golf carts and office copier printers which were taken over a period of 5 years and will expire in February 2023 and October 2023. The carrying value of the leases does not include future financing costs and as such carrying value is equivalent to fair value.
NOTE 17: CAPITAL AND LEASING COMMITMENTS
Operating Lease Commitments
The Company’s future minimum operating lease payments are as follows:
2022 2021 Minimum Lease Payment Due $ $
Within 1 Year 36,121 58,795 1 to 5 years 1,095 37,217 37,216 96,012 Less: Future Finance Costs 838 4,819
36,378 91,193
The equipment lease commitments comprising golf cart and photocopier leases are non-cancellable operating leases with lease terms of five years. Lease finance commitments are shown in Borrowings (Note 11) as current borrowings of $35,294 (2021: $54,814) and non-current borrowings of $1,084 (2021: $36,379). The present value of operating leases is booked as an asset and a corresponding liability raised for the outstanding principal. Lease payments are charged to the liability as a reduction in principal and interest is charged to interest expense. During the current year $3,980 (2021: $7,167) was charged to interest cost and $54,814 (2021: $51,630) allocated to reduce principal for operating leases.
Equipment Finance Commitments
2022 2021 Payable – Minimum Repayments $ $
Within 1 Year 24,270 24,269 1 to 5 years 25,523 49,792 49,793 74,061 Less: Future Finance Costs 2,944 6,004
46,849 68,057
Equipment finance commitments are shown in Borrowings (Note 11) as current borrowings of $22,350 (2021: $21,209) and non-current borrowings of $24,499 (2021: $46,848).
NOTE 18: SEGMENT REPORTING
The Company operates predominantly in the hospitality, sporting and entertainment industry.
The Company’s operations and customers are located predominantly in Sydney, New South Wales. The Company provides golfing facilities, food, beverage and other entertainment facilities to Members and guests.
NOTE 19: COMPANY DETAILS
The Company is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the Company, every Member of the Company undertakes to contribute an amount limited to $2.00 per Member in the event of the winding up of the Company during the time that they are a Member or within one year thereafter. At 30 June 2022 there were 1,297 members.
The registered office and principal place of the Company is:
Copeland Road, Beecroft NSW 2119
NOTE 20: CONTINGENT LIABILITIES
There are no contingent liabilities that have been incurred by the Company in relation to 2022 or 2021.
NOTE 21: COMMITMENTS
At 30 June 2022 the company has no material commitments which will be paid in the 2022 year.
NOTE 22: EVENTS AFTER THE BALANCE SHEET DATE
There have been no significant events since the end of the financial year up to the date of this report.
The financial report was authorised for issue on 31st day of August 2022 by the Board of Directors.
NOTE 23: REPORTING REQUIREMENTS - REGISTERED CLUBS ACT 1976
The Club maintains a register in accordance with the Registered Clubs Act 1976. This register is available for members to view on appointment at the front office.
