Post on 21-Oct-2020
BUNDEENA R
BUNDEENA R.S.L. MEMORIAL CLUB LIMITED
A.B.N : 16 001 037 350
FINANCIAL REPORT
FOR THE YEAR ENDED
31 MARCH 2009
BUNDEENA R.S.L. MEMORIAL CLUB LIMITED
A.B.N : 16 001 037 350
CONTENTS
Directors' Report
1
Auditor's Report
6
Auditor's Independence Declaration
8
Statement of Changes in Equity
11
Statement of Cash Flows
12
Notes to the Financial Statements
13
Directors' Declaration
32
Disclaimer on Additional Financial Information
33
Your directors present their report on the company for the financial year ended 31 March 2009.
The names of the directors in office at any time during or since the end of the year are:
Mr Graeme Kelly
Mr Barrie Dean
Mr Ken Woodbine
Mrs Joyce Drew
Mr Craig Hamilton
Mr David Lake
Mrs Kathleen Harrigan
Mr Robert Demeio
Mr John Scott - Resigned 3/02/2009
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Company Secretary
The following person held the position of company secretary at the end of the financial year :
Name :
Daniel Morris
Appointment Date :
23/09/2005
Experience and Qualifications :
Employed as Assistant Secretary Manager at Bundeena RSL Memorial Club from September 2004 until appointment as Secretary-Manager in September 2005. Previous experience includes position of Office and Bar Supervisor at North Bondi RSL Club 2003-2004 and Duty Manager at Hotel Bar Ace between July and November 2003.
Relevant training includes Clubs NSW courses in Code of Practice, OH&S Management and Finance Management. Other relevant training includes First Aid Certificate and Responsible Service of Alcohol and Responsible Conduct of Gaming Courses.
Principal Activities
The principal activities of the company during the financial year were :
Licensed Club
Operating Results
The net loss of the company for the financial year after providing for income tax amounted to $122,415.
Dividends
The company is prevented by law from paying dividends.
Review of Operations
A review of the operations of the company during the financial year and the results of those operations are as follows :
Results are detailed in the President's and Treasurer's reports which accompany the Annual Financial Report to the members.
Significant Changes
No significant changes in the company's state of affairs occurred during the financial year.
Future Developments
The likely developments in the operation of the company and the expected results of those operations in financial years subsequent to the year ended 31 March 2009 are as follows :
The Club has raised funds through members donations and is currently preparing to sell a further six poker machines licences.This along with a restructure of staff will enable the Club to continue its operations. As auditors Booth Partners will closely monitor trading conditions over the next six months to ensure the club remains solvent.
After Balance Date Events
The club sought amalgamation partners through CMP Lawler and subsequently received notice that amalgamation attempts had failed on 20 May 2009.As auditors Booth Partners have written to ASIC on 26 May 2009 notifying them that there were reasonable grounds to suspect that the Club may be insolvent trading as per RG34.49 and that s.588G of the Act has been breached.Directors called a general meeting of members on 21 June 2009 to vote on a special resolution "that the Club cannot by reason of its liabilities continue its business and that it is advisable to wind up the Club voluntarily in accordance with the Corporations Act".
Environmental Issues
The company's operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a State or Territory.
Membership
The number of members registered in the Register of Members at the 31 March 2009 were as follows :
Ordinary Members
1227
Total Members
1227
Directors
Qualifications, Experience and Special Duties of Directors
Graeme Kelly
President
Union Manager.Nine years Director.Eight years President.
Barrie Dean
Senior Vice President
Company Director.Ten years Director.
Ken Woodbine
Junior Vice President
Retired.Eight years Director.
Joyce Drew
Treasurer
Retired.Sixteen years Director.
Craig Hamilton
Director
IT Manager.One year Director.
David Lake
Director
Garbage Worker.Three years Director.
Kathleen Harrigan
Director
Retired.Three years Director.
Robert Demeio
Director
Project Manager.Two year Director.
John Scott
Director
Engineer.
Resigned 3/02/2009
Summary of Meeting Attendances :
14 ordinary meetings and 4 special meetings and 1 executive meeting were held during the year.
Number of
Number of
Meetings Eligible
Meetings
To Attend
Attended
Graeme Kelly
19
16
Barrie Dean
19
15
Ken Woodbine
18
18
Joyce Drew
14
7
Craig Hamilton
14
8
David Lake
14
14
Kathleen Harrigan
14
13
Robert Demeio
14
12
John Scott
12
9
Directors' Indemnity
Directors' and Officers' indemnity premiums have been paid by the company during the year for Directors' and Officers' liability insurance. The insurance is in respect of legal liability for damages and legal costs to a maximum of $2,000,000 arising from claims made by reason of any omission or acts (other than dishonesty) by them whilst acting in their individual or collective capacity as Directors or Officers of the company. The company has not, during or since the financial year, in respect of any person who is or has been an officer or auditor of the company indemnified or made any relevant agreement for indemnifying against a liability, including costs and expenses in successfully defending legal proceedings.
Directors Benefits
No director has received or become entitled to receive, during or since the end of the financial year, a benefit because of a contract made by the company or a related body corporate with the director, a firm of which a director is a member or a company in which a director has a substantial financial interest. This statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by directors shown in the company's accounts, prepared in accordance with applicable accounting standards and other mandatory professional reporting requirements and the Corporations Act 2001.
Non-audit Services
The board of directors is satisfied that the provision of non-audit services provided during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are satisfied that the services disclosed below did not compromise the external auditors independence for the following reasons :
-
all non-audit services are reviewed and approved prior to commencement to ensure they do not adversely affect the integrity and objectivity of the auditor; and
-
the nature of the services provided do not compromise the general principles relating to auditor independence as set out in the Institute of Chartered Accountants in Australia and CPA Australia's Professional Statement F1 : Professional Independence.
The following fees for non-audit fees were paid/payable to the external auditors during the year ended 31 March 2009:
$
Taxation services
1,000
Accounting services
7,900
8,900
Auditor's Independence Declaration
The auditor's independence declaration for the year ended 31 March 2009 as required under Section 307c of the Corporations Act 2001 is set out on page 8.
Signed in accordance with a resolution of the Board of Directors:
Director:
______________________
Mr Graeme Kelly
Dated this day of
Scope
We have audited the financial report of Bundeena R.S.L. Memorial Club Limited being the Income Statement, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, Notes to and Forming Part of the Accounts and Directors Declaration for the financial year ended 31 March 2009. The company's directors are responsible for the preparation and presentation of the financial report and the information they contain. 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 as to whether the financial report is free of material misstatement. 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.
These procedures have been undertaken to form an opinion whether, in all material respects, the financial report is presented fairly in accordance with Accounting Standards and other mandatory professional reporting requirements in Australia and statutory requirements 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 its operations and its cash flows.
The audit opinion expressed in this report has been formed on the above basis.
Independence
In conducting our audit, we followed applicable independence requirements of Australian professional and ethical pronouncements and the Corporations Act 2001.
In accordance with ASIC Class Order 05/83, we declare to the best of our knowledge and belief that the auditor's independence declaration, set out on page 8 of the financial report, has not changed as at the date of providing our audit opinion.
Matters relating to the electronic presentation of the audited financial report
The auditor's report relates to the financial report of Bundeena R.S.L. Memorial Club Limited for the financial year ended 31 March 2009 included on the company's website. The Director's are responsible for the integrity of the company's website. We have not been engaged to report on the integrity of the company's website. The auditor's report refers only to the statements named above. It does not provide an opinion on any other information which may have been hyperlinked to / from these statements. If users of this report are concerned with the inherent risks arising from electronic data communications they are advised to refer to the hard copy of the audited financial report to confirm the information included in the audited financial report presented on this website.
Audit Opinion
In our opinion, the financial report of Bundeena R.S.L. Memorial Club Limited is in accordance with:
(a)
the Corporations Act 2001, including:
(i)
giving a true and fair view of the company's financial position as at the year ended 31 March 2009 and of their performance for the year ended on that date; and
(ii)
complying with Accounting Standards in Australia and the Corporation Regulations 2001; and
(b)
other mandatory professional reporting requirements
Booth Partners
Certified Practising Accountants
____________________________
Tony Federici
52 Osborne Street, Nowra NSW 2541
Dated this day of
I declare that, to the best of my knowledge and belief, during the year ended 31 March 2009, there have been :
i)
no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
ii)
no contraventions of any applicable code of professional conduct in relation to the audit.
Booth Partners
Certified Practising Accountants
Tony Federici
52 Osborne Street, Nowra NSW 2541
Dated this day of
Sales and trading revenue
2
921,331
1,102,696
Cost of sales and trading expenses
(519,020)
(579,215)
Gross profit
402,311
523,481
Revenue from ordinary activities
2
167,652
124,072
Administration, Security Wages and Wage on Costs
(177,608)
(194,897)
Borrowing Expenses
(56,074)
(47,018)
Depreciation and Amortisation
(64,192)
(67,057)
Promotion and Entertainment Expenses
(132,018)
(152,076)
Occupancy Expenses
(157,118)
(141,484)
Other Expenses from Ordinary Activities
(105,368)
(117,122)
Loss before income tax
3
(122,415)
(72,101)
Income tax expense
-
(7,255)
Loss attributable to members of the company
16
(122,415)
(79,356)
CURRENT ASSETS
Cash and cash equivalents
5
80,553
171,718
Trade and other receivables
7
11,375
12,142
Financial assets
8
750
-
Inventories
9
72,769
73,751
Other current assets
10
8,920
10,330
TOTAL CURRENT ASSETS
174,367
267,941
NON-CURRENT ASSETS
Property, plant and equipment
11
1,405,203
1,492,459
TOTAL NON-CURRENT ASSETS
1,405,203
1,492,459
TOTAL ASSETS
1,579,570
1,760,400
CURRENT LIABILITIES
Trade and other payables
12
93,293
74,276
Borrowings
13
55,443
189,138
Short term provisions
14
45,167
39,609
Tax liabilities
(1,148)
-
Other current liabilities
15
7,774
3,918
TOTAL CURRENT LIABILITIES
200,529
306,941
NON-CURRENT LIABILITIES
Borrowings
13
557,033
508,476
Long term provisions
14
13,727
14,287
TOTAL NON-CURRENT LIABILITIES
570,760
522,763
TOTAL LIABILITIES
771,289
829,704
NET ASSETS
808,281
930,696
EQUITY
Reserves
4
159,933
159,933
Retained earnings
16
648,348
770,763
TOTAL EQUITY
808,281
930,696
Retained Profits
Reserves
Total
Balance at 1 April 2007
850,119
159,933
1,010,052
Profit attributable to members of the entity
(72,101)
(72,101)
Income tax expense
(7,255)
(7,255)
Balance at 31 March 2008
770,763
159,933
930,696
Balance at 1 April 2008
770,763
159,933
930,696
Profit attributable to members of the entity
(122,415)
(122,415)
Balance at 31 March 2009
648,348
159,933
808,281
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
999,865
1,195,556
Payments to suppliers and employees
(1,040,130)
(1,146,386)
Interest received
1,576
8,362
Borrowing costs paid
(29,678)
(37,000)
Income tax paid
-
(7,255)
Net cash provided by (used in) operating activities
(68,367)
13,277
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment
104,500
15,000
Payments for property, plant and equipment
(41,411)
(313,356)
Payments for investments
(750)
-
Net cash provided by (used in) investing activities
62,339
(298,356)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
-
409,397
Repayment of borrowings
(85,138)
(117,489)
Net cash provided by (used in) financing activities
(85,138)
291,908
Net increase (decrease) in cash held
(91,166)
6,829
Cash at beginning of financial year
171,719
164,890
Cash at end of year
80,553
171,719
1
Statement of Significant Accounting Policies
Basis of Preparation
The financial report is a general purpose financial report that has been prepared in accordance with applicable Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.
The financial report has been prepared on an accrual basis and is based on historical costs and 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.
Income Tax
The income tax expense for the year is the tax payable on the current year's taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.
Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets and liabilities are recognised at the tax rates expected to apply when the assets are recovered or the liabilities are settled. Current and deferred tax is recognised as an expense in the income statement except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity.
Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available, against which deductible temporary differences can be utilised.
Under the concept of mutuality, clubs are only assessed for income tax on that proportion of income derived from non-members and other external sources.
Inventories
Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basis.
Stores are valued at cost.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.
Property
Freehold land and buildings are measured at cost less depreciation. It is the policy of the entity to have annual appraisals by the directors to ensure the carrying amount is not in excess of the recoverable amount from those assets.
Plant and Equipment
Plant and equipment is measured on the cost basis less depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually 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 present values in determining the recoverable amount.
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation
The depreciable amount of all fixed assets including buildings, but excluding freehold land, are depreciated on diminishing value basis over the asset's useful life to the company commencing from the time the asset is held ready for use. Properties held for investment purposes are not subject to a depreciation charge.
The depreciation rates used for each class of depreciable asset are:
Class of Fixed Asset
Depreciation Rate
Buildings
2.5%
Plant and Equipment
10 - 40%
Poker Machines
20%
Motor Vehicles
22%
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains 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.
Employee Benefits
Provision is made for the company's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from wages and salaries, annual leave and long service leave which will be settled after one year, have been measured at the amounts expected to be paid when the liability is settled plus related on-costs. Other employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.
Provisions
Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Provisions are measured using the best estimate of the amounts required to settle the obligation at balance date.
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 company, 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 value. Leased assets are depreciated on a straight line basis over their estimated useful lives where it is likely that the company will obtain ownership of the asset, or over the term of the lease. 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 periods in which they are incurred.
Lease incentives received under operating leases are recognised as a liability. Lease payments received reduce the liability.
Financial Instruments
Initial Recognition and Measurement
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (ie trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified
Classification and Subsequent Measurement
(i) Financial assets at fair value through profit and loss
Financial assets are classified at fair value through profit and loss when they are held for trading for the purpose of short term profit taking, where they are derivatives not held for hedging purposes, or designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Realised and unrealised gains and losses arising from changed in fair value are included in profit or loss in the period in which they arise.
(ii) Loans and Receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments which are not quoted in an active market and are stated at an amortised cost using the effective interest rate method.
(iii) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the group's intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated as such or that they are not classified in any of the other categories. They compromise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.
(v) Financial Liabilities
Non-derivative financial liabilities (excluding financial guarantee) are subsequently measured at amortised cost using the effective interest rate method.
Fair value
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm's length transactions, reference, to similar instruments and option pricing models.
Impairment
At each reporting date, the Company assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in profit or loss.
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 an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the income statement.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.
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.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the Balance sheet.
Revenue
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and cessation of all involvement in those goods.
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).
Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in income in the period in which they are incurred.
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST.
Cash flows are presented on a gross basis, except for the GST component of investing and financing activities which are disclosed as operating cash flows.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
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.
Key Estimates - Impairment
The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.
2
Revenue
Operating activities
Trading Revenue
921,331
1,102,696
Interest
1,576
8,362
Kitchen Rent
(1,797)
10,822
Members Subscriptions
10,718
7,534
Sundry Income
64,990
82,634
996,818
1,212,048
Non-operating activities
Profit on disposal of property, plant and equipment
92,165
14,720
92,165
14,720
1,088,983
1,226,768
3
Loss from Ordinary Activities
Loss from ordinary activities before income tax expense has been determined after:
Expenses:
Cost of sales
519,020
579,215
Borrowing costs
Borrowing Costs
420
203
Total borrowing costs
420
203
Auditors' Remuneration
Accounting Fees
8,900
9,800
Auditors Remuneration
7,300
6,200
16,200
16,000
Total Auditors' Remuneration
16,200
16,000
No other benefits were received.
4
Reserves
Capital Profits Reserve
159,933
159,933
5
Cash and Cash Equivalents
Current
Cash on Hand
45,222
48,004
Macquarie Cash Management Account
625
1,723
National Australia Bank - TAB & Keno
9,000
9,000
National Australia Bank - Current Account
25,706
1,991
IMB Term Deposit
-
111,000
80,553
171,718
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 balance sheet as follows:
Cash and cash equivalents
80,553
171,718
80,553
171,718
6
Key Management Personnel Compensation
Directors' Remuneration
Honoraria and Expenses paid or payable to directors of the Company by the Company and any related parties
-
2,000
Key Management Personnel Remuneration
Total Remuneration
87,598
88,687
87,598
88,687
7
Trade and Other Receivables
Current
Debtors
11,375
12,142
8
Financial Assets
Current
ILG Co-Op Shares
750
-
9
Inventories
Current
Stock on Hand
33,450
32,005
Stock on Hand - Other
39,319
41,746
72,769
73,751
10
Other Current Assets
Current
Prepayments
6,446
8,511
Prepaid Borrowing Expenses
2,474
1,819
8,920
10,330
11
Property, Plant and Equipment
Land and Buildings
Leasehold Improvements
1,344,211
1,328,013
Less: Accumulated Depreciation
(170,841)
(135,905)
1,173,370
1,192,108
Total Land and Buildings
1,173,370
1,192,108
Plant and Equipment
Plant & Equipment at Cost
409,116
395,472
Less: Accumulated Depreciation
(288,270)
(263,927)
120,846
131,545
Motor Vehicles at Cost
24,050
24,050
Less: Accumulated Depreciation
(20,091)
(18,942)
3,959
5,108
Office Furniture & Equipment at Cost
106,584
105,499
Less: Accumulated Depreciation
(78,892)
(75,128)
27,692
30,371
Poker Machines at Cost
425,483
550,786
Less: Accumulated Depreciation
(346,147)
(417,459)
79,336
133,327
Bar at Cost
53,085
53,085
Less: Accumulated Depreciation
(53,085)
(53,085)
Total Plant and Equipment
231,833
300,351
Total Property, Plant and Equipment
1,405,203
1,492,459
Movements in Carrying Amounts
Movements in carrying amount for each class of property, plant and equipment between the beginning and the end of the current financial year
Leasehold Improvements
Plant & Equipment
Poker Machines
Motor Vehicles
Total
$
$
$
$
$
$
Balance at 1 April 2007
1,026,333
154,904
117,765
6,591
-
1,305,593
Additions
198,368
39,993
74,995
-
-
313,356
Disposals
-
-
(281)
-
-
(281)
Depreciation expense
(32,593)
(32,981)
(59,152)
(1,483)
-
(126,209)
Balance at 31 March 2008
1,192,108
161,916
133,327
5,108
-
1,492,459
Balance at 1 April 2008
1,192,108
161,916
133,327
5,108
-
1,492,459
Additions
16,198
14,730
10,483
-
-
41,411
Disposals
-
-
(12,336)
-
-
(12,336)
Depreciation expense
(34,936)
(28,107)
(52,139)
(1,149)
-
(116,331)
Carrying amount at 31 March 2009
1,173,370
148,539
79,335
3,959
-
1,405,203
12
Trade and Other Payables
Current
Accrued Expenses
58,120
23,344
Trade Creditors
35,173
50,932
93,293
74,276
13
Borrowings
Current
Hire Purchase Liability
66,148
71,308
Less: Unexpired Hire Purchase Liability
(10,705)
(16,170)
Loan - A & M Livingston
-
134,000
55,443
189,138
Non-Current
Hire Purchase Liability
95,991
162,139
Less: Unexpired Hire Purchase Liability
(7,708)
(18,413)
Loan - A & M Livingston
468,750
364,750
557,033
508,476
Loans are expected to be settled :
within 12 months
-
134,000
12 months or more
468,750
364,750
468,750
498,750
The loans from Alick William & Margaret Eileen Livingston are secured by a registered first mortgage over all licences, fixtures, fittings, plant and equipment, uncalled capital, book debts, assets, undertaking and goodwill of the Club.
Alick William & Margaret Eileen Livingston is a fixed and floating charge over all of the assets and goodwill of the Club therein.
14
Provisions
Current
Provision for Annual Leave
37,693
32,551
Provision for Long Service Leave
7,474
7,058
45,167
39,609
Non-Current
Provision for Long Service Leave
13,727
14,287
Aggregate employee benefit liability
58,894
53,896
15
Other Liabilities
Current
Poker Machine Tax Rebate
2,871
2,863
Subscriptions in Advance
4,903
1,055
7,774
3,918
16
Retained Earnings
Retained earnings at the beginning of the financial year
770,763
850,119
Net loss attributable to members of the company
(122,415)
(79,356)
Retained earnings at the end of the financial year
648,348
770,763
17
Capital and Leasing Commitments
Hire Purchase Commitments
Payable:
Not later than one year
66,148
71,308
Later than one year but not later than five years
95,991
162,139
Minimum payments
162,139
233,447
Less future finance charges
(18,413)
(34,583)
Total hire purchase liability
143,726
198,864
18
Cash Flow Information
Reconciliation of cash flow from operations with profit after income tax
Profit (loss) after income tax
(122,415)
(79,356)
Non-cash flows in profit :
Profit on sale of non-current assets
(92,165)
(14,720)
Depreciation
116,331
126,209
Changes in assets and liabilities :
(Increase) Decrease in current inventories
982
(9,128)
(Increase) Decrease in current receivables
767
(6,718)
(Increase) Decrease in prepayments
1,410
(438)
Increase (Decrease) in trade creditors
19,017
(12,523)
Increase (Decrease) in current provisions
4,410
7,583
Increase (Decrease) in non-current provisions
(560)
3,780
Increase (Decrease) in income in advance
3,856
(1,412)
Cash flows from operations
(68,367)
13,277
19
Company Limited by Guarantee
Bundeena R.S.L. Memorial Club Limited is a Company limited by guarantee with the liability of members limited to the amount of $2 as set out in the Company's Memorandum and Articles of Association.
20
Company Details
Bundeena R.S.L. Memorial Club Limited
The principal place of business is:
69-71 Loftus Street, Bundeena
21
Financial Risk Management
Financial Risk Management Policies
The company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable and leases.
The main purpose of non-derivative financial instruments is to raise finance for company operations.
The company does not have any derivative instruments at 31/03/2009.
(i) Treasury Risk Management
Senior management meet on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.
The overall risk management strategy seeks to assist the company in meeting its financial targets, whilst minimising potential adverse effects on financial performance.
(ii) Financial Risk Exposures and Management
The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk.
Interest rate risk
Interest rate risk is managed by assessing the company's exposure and using an appropriate mixture of fixed and floating rate debt.
Foreign currency risk
The company is not exposed to fluctuations in foreign currencies
Liquidity risk
The company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.
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 of those assets, net of any provisions for doubtful debts, as disclosed in the statement of financial position and notes to the financial statements. The company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company.
Price risk
The company is not exposed to any material commodity price risk.
Financial Instrument Composition and Maturity Analysis
The tables below reflect the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management's expectations of the settlement period for all other financial instruments.
Weighted Average
Floating Interest
Fixed Interest Rate Maturing
Non Interest
Effective Interest
Rate
Within 1 year
1 to 5 years
Over 5 years
Bearing
Rate
2009
2008
2009
2008
2009
2008
2009
2008
2009
2008
2009
2008
%
%
$
$
$
$
$
$
$
$
$
$
Financial Assets
National Australia Bank Current Account
-
-
25706
1991
-
-
-
-
-
-
-
-
National Australia Bank Deposits
-
4.50
9000
9000
-
-
-
-
-
-
-
-
Macquarie Cash Management Account
2.06
6.58
625
1723
-
-
-
-
-
-
-
-
IMB Term Deposit
-
8.00
-
111000
-
-
-
-
-
-
-
-
Cash on Hand
-
-
-
-
-
-
-
-
-
-
45222
48004
Debtors
-
-
-
-
-
-
-
-
-
-
11375
12142
Total Financial Assets
35331
123714
-
-
-
-
-
-
56597
60146
Financial Liabilities
Hire Purchase Liabilities
-
-
-
-
55443
55138
88283
143726
-
-
-
-
Loan - A&M Livingston
8.00
8.00
-
-
-
134000
-
364750
468750
-
-
-
Creditors & Accruals
-
-
-
-
-
-
-
-
-
-
95293
74276
Total Financial Liabilities
-
-
55443
189138
88283
508476
468750
-
95293
74276
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 net fair value approximates their carrying value. No financial assets and financial liabilities are readily traded on organised markets in standardised 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 aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements.
Aggregate net fair values and carrying amounts of financial assets and financial liabilities at balance date:
2009
2008
Carrying Amount
Net Fair Value
Carrying Amount
Net Fair Value
$
$
$
$
Financial Assets
Debtors
11,375
11,375
12,142
12,142
Total Financial Assets
11,375
11,375
12,142
12,142
Financial Liabilities
Creditors & Accruals
(95,293)
(95,293)
(74,276)
(74,276)
Total Financial Liabilities
(95,293)
(95,293)
(74,276)
(74,276)
Sensitivity Analysis
Interest Rate Risk
The company has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in this risk.
Interest Rate Sensitivity Analysis:
At 31/03/2009, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant, would be as follows:
2009
2008
$
$
Change in Profit
Increase in interest rate by 2%
(9,675)
(8,675)
Decrease in interest rate by 2%
9,675
8,675
Change in Equity
Increase in interest rate by 2%
(9,675)
(8,675)
Decrease in interest rate by 2%
9,675
8,675
The above interest rate sensitivity analysis has been performed on the assumption that all other variables remain unchanged.
No sensitivity analysis has been preformed on foreign exchange risk, as the entity is not exposed to foreign currency fluctuations.
The directors of the company declare that:
1.
The financial statements and notes 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 31 March 2009 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.
Director:
____________________________
Mr Graeme Kelly
Dated this day of
The additional information on the proceeding pages is in accordance with the books and records of Bundeena R.S.L. Memorial Club Limited which have been subjected to the auditing procedures applied in the statutory audit of the company for the year ended 31 March 2009. It will be appreciated that the statutory audit did not cover all details of the additional financial information. Accordingly, we do not express an opinion on such financial information and no warranty of accuracy or reliability is given.
In accordance with our firm policy, we advise that neither the firm nor any member or employee of the firm undertakes responsibility arising in any way whatsoever to any person (other than the company) in respect of such information, including any errors or omissions therein, arising through negligence or otherwise however caused.
Booth Partners
Certified Practising Accountants
Kade Wallace
52 Osborne Street, Nowra NSW 2541
Dated this day of
Bar Trading
Bar Sales
540,789
498,397
Function Room Sales
24,590
22,492
565,379
520,889
LESS: COST OF GOODS SOLD
Opening Stock
32,005
27,222
Purchases
226,387
222,534
Closing Stock
(33,450)
(32,005)
224,942
217,751
GROSS PROFIT FROM TRADING
340,437
303,138
Sales Rebate
3465
-
Sales Support
5000
-
8465
-
TOTAL INCOME
348902
-
EXPENDITURE
Bar Supplies & Requisites
1,840
714
Bar Snacks
178
1,730
Equipment hire
715
3,000
Happy Hour
5,136
4,903
Sundry Purchases
10,300
14,260
Stock Control
3,120
3,120
Wages - Bar
149,907
164,109
Wages - Function Room
5,437
4,981
176,633
196,817
NET PROFIT
172,269
106,321
Poker Machine Trading
Net Clearances
347,487
581,807
347,487
581,807
GROSS PROFIT FROM TRADING
347,487
581,807
EXPENDITURE
Data Monitoring Services
11,706
13,149
Finance Charges
6,102
3,367
Depreciation
52,139
59,152
Quickchange Fees
263
540
Hopper Variations
1,195
(872)
Promotions
4,648
6,385
Metered Profit Adjustment
34
184
Poker Machine Turnover Duty
14,450
54,146
Repairs & Maintenance
8,950
9,217
Wages
17,958
19,379
117,445
164,647
NET PROFIT
230,042
417,160
INCOME
Bar Trading
172,269
106,321
Poker Machine Trading
230,042
417,160
Interest Received
1,576
8,362
Kitchen Rent
(1,797)
10,822
Members Subscriptions
10,718
7,534
Sundry Income
22
64,990
82,634
Profit on Sale of Fixed Assets
92,165
14,720
569,963
647,553
LESS : EXPENDITURE
Accounting & Audit Services
16,200
16,000
Advertising & Sponsorships
4,580
8,921
Affiliation Fees
3,431
3,693
Cleaning Materials & Laundry
55,157
57,193
Bank Charges & Government Duties
14,820
10,849
Computer Expenses
2,663
1,877
Borrowing Costs
420
203
Directors Expenses
-
2,397
Entertainment & Promotion Expenses
132,018
152,076
Electricity & Gas
34,489
34,538
Donations
3,071
2,807
Depreciation
64,192
67,057
Fees & Licences
2,764
2,681
General Expenses
23
22,875
19,989
Hire Purchase Charges
9,976
9,815
Honorariums
-
2,000
Insurance
29,899
30,614
Interest Paid
45,678
37,000
Members Benefits
834
1,130
Mortality Payments
136
-
Motor Vehicle Expenses
1,404
2,716
Printing & Stationery
7,566
11,139
Provision for Annual Leave
7,102
14,779
Provision for Long Service Leave
(143)
4,232
Rates
4,899
4,603
Repairs & Maintenance
31,793
18,424
Rent
19,025
18,476
Security Costs
6,580
4,271
Sporting Club Subsidies
1,543
3,400
Superannuation
24,752
25,653
Telephone - Club
3,276
3,512
Telephone - Members
902
1,277
Wages - General & Administration
135,301
142,353
Water Rates
5,175
3,979
692,378
719,654
OPERATING LOSS
(122,415)
(72,101)
22
Sundry Income
ATM Commission
5,666
4,042
Bingo Income
5,781
4,535
Catering and Room Hire
6,503
6,545
Cigarette Commission
616
679
Creditor Adjustment
-
20,315
Insurance Recoveries
327
2,193
Poker Income
-
2,149
Keno Commission
14,948
14,502
Pool Table
2,226
1,728
Raffles
11,749
13,772
Sports Pick Subscriptions
418
690
Snack Machine Commission
1,714
1,823
Sundries
-
10
TAB Commission
11,146
7,335
Telephone and Printing
185
503
Video Games/Pool Table/Juke Box
3,711
1,813
64,990
82,634
23
General Expenses
Courtesy Bus Expenses
313
4,001
First Aid Supplies
109
173
Internet Expenses
1,454
1,589
Consultancy & Legal Fees
4,893
2,028
Staff Amenities
2,444
1,458
Staff Training
1,901
3,273
Sundries
85
146
Travelling Expenses
68
78
Unders & Overs
804
(371)
Uniforms
780
708
ATM & EFTPOS Expenses
3,714
2,800
Keno Expenses
4,494
2,241
TAB Expenses
1,816
1,865
22,875
19,989