2016-2017 ANNUAL REPORT - mlcsc.com.au

2016-2017

ANNUAL REPORT

CONTENTS Notices 3 Secretary Managers’ Report

9

Presidents’ Report

13

Directors’ Report

17

Auditors Annual Report

49

NOTICES

MEMBERS WE HAVE SADLY LOST Year ending 30 June 2017 ALCHIN DOROTHY ASKEW DOUGLAS BAIN NANCY BEALE JOHN BECKMAN BETTY BROOK ESMAY CAMPBELL GRAHAM GREETHEAD RONALD HILZINGER JEAN IMRIE DOUG JOHNS GARY KAPEEN OWEN MACAULEY TERRY MENDES MAXWELL MONTAGUE VERA NEW BRIAN O’REILLY MICHAEL PRATTEN BARBARA RHODES ELVERA SHEEHAN CHARLES SMITH NOELENE WALLACE DONALD YOUNG GARY

4

Maclean Lower Clarence Services Club Annual Report 2017

Maclean Lower Clarence Services Club ABN: 89 001 663 494

NOTICE TO ALL MEMBERS

THE ANNUAL GENERAL MEETING WILL BE HELD ON SUNDAY 29TH OCTOBER 2017 at 10AM.

www.mlcsc.com.au

5

LIST OF OFFICE BEARERS 2016 to 2017 President D. Jones Oct’16 – Mar ‘17 J. De Roos Vice Presidents J. De Roos Snr R. Jones Directors W. Baker, M. Want, N. Tollis, A. Hilliard, S.Hilliard, D. Noel Secretary Manager S. Shankland Assistant Manager B. Rediger Executive Chef S. Owen Functions Co-Ordinator P. Lane Bar Manager K. Page

6



WE SUPPORTED YOUR COMMUNITY 2016 to 2017 • Clarence Coast Junior Rugby League Club

• Lower Clarence Music Eisteddfod

• Maclean United Cricket Club

• Maclean Probus Club

• Lower Clarence Darts Association

• Maclean Laurel Club

• Lower Clarence Rowing Club

• Maclean RSL Sub-Branch

• Maclean Hospital Auxiliary

• Friends of Mareeba

• Maclean Show Society

• Maclean High School

• Lower Clarence Arts and Crafts

• Genes For Jeans Foundation

• Maclean Golf Club – Veterans Golfers

• Tartan Brushy Club

• Lower Clarence Scottish Association

• Maclean Orchid Society

• Lawrence Golf Club

• Clarence Coast Theatrical Society

• Maclean Highland Gathering

• Westpac Helicopter

• Maclean District Pipe Band

• Lower Clarence Netball Association

• Mareeba Aged Care • National Servicemen’s Association • Grafton Legacy • Maclean RSL Women’s Auxiliary

www.mlcsc.com.au

7

SECRETARY MANAGERS REPORT 2017

SECRETARY MANAGERS REPORT Dear Member Well, it’s hard to believe it’s that time of year again and it’s also hard to fathom that this is my 5th report to you, the Members and owners, of this fine Club. The great news is that our trading figures are still increasing from previous years but unfortunately on the back of that, wages and other expenses rise as a result. Despite this, we remain in a better position than last year and even though we’ve still produced a loss, it’s only minimal and shows that we are still receiving wonderful patronage from Members and Visitors alike. Our investment in the aesthetics of the Club, which has modernised and kept us current, has continued to attract patrons and even though we aren’t all the way there yet, the plans and ideas are at the forefront of myself and the Boards minds. We will keep investing in the Club for our Members and donating and sponsoring the many worthy Clubs, Charities and people in our beautiful Community. We have continued our legacy to our Ex-Service Members with our service and donations to them increasing dramatically this year. We believe in supporting those organizations that support our diggers, thus, RSL ladies Auxiliary, Legacy, Laurel Club, National Servicemans Association and in particular, the RSL Sub-Branch have received help/donations in some form and to different extents. We always have and always will be here for those whom have dedicated their lives and their time to our country. As I explained last year, Poker Machines operate on an expected return to player percentage, this unfortunately can have massive fluctuations and run over long periods of time. Unfortunately, due to the volatility of current Poker Machine games, it is often seen that this percentage is hard to obtain. Thus, causing us this year, to experience a drop in our percentage by .73%. This may not seem like much, but it represents about $85,000 in net poker machine revenue. This obviously has a big impact on a small Club like us. What can we do about it, I hear you ask. Well, the short answer is, nothing. This is totally controlled by regulation and is closely monitored to ensure compliance. Unfortunately, it is just something that we just must live with. I extend a personal thanks to the Dedicated Directors of this Club, some of whom, go far beyond expectation. Their help in this Club is numerous and they deserve a special thanks

10



from all the Members. From the likes of, repairs, raffles, purchasing prizes, brain-storming, going to community functions on behalf of the Club, you name it, these people volunteer their time and energy to this Club for FREE. It is a pleasure working with these select few. I have utmost respect for you. A thank you also must go to all the volunteers of the Club. These people are not on the Board, yet love our Club as much as we do, and out of the goodness of their hearts, dedicate some of their precious time to us. These are the exceptional people we have in our community and appreciate their membership to our Club. So glad we’ve got you. To the awesome staff of this Club, I once again, am humbled by your dedication and hard work you have produced this year. Technology and changing times force us to sometimes work outside our comfort zones, but you embrace these changes with energy and enthusiasm. The Club sincerely appreciates this. Sometimes it can get quite stressful, but as we are all a team, we can and will overcome all these issues, unfazed. The staffs’ professionalism and dedication is a vital ingredient in the success of any organization and our staff certainly provides this. A Special thanks to my fantastic assistant Manager, Briony and awesome office staff, of whom I rely heavily on. Where would I be without you? To the Executive Chef, Shae and our fabulous function coordinator, Penny, you guys are a privilege to work with. I’m very happy to conclude that The Club is in good stead. We’ve got some wonderful staff, beautiful food, magnificent views, lovely surroundings and atmosphere and a great Board. The Board and I have accomplished a great many things in the last 5 years, and we will continue to make our little Club even better in the future. This Club is a genuine, friendly, hard- working Club, whom loves the Community and its’ Members. Thanks again Members for your patronage, we hope to see you with us very soon. It’s been a pleasure serving you. Thank You Sharon Shankland Secretary Manager

www.mlcsc.com.au

11

PRESIDENTS REPORT 2017

PRESIDENTS REPORT It is with pleasure that I present to you the President’s Report for the 35th Annual Report of the Maclean Lower Clarence Services Club Ltd. I embraced the role as President during the year after the resignation of the then President, Denis Jones. It is an honour and a privilege to lead the Club as the first female President in the history of the Club. As a local person I have watched the Club grow from its inception and I know my father, a WWII veteran, would be delighted that I hold this position. I thank the Board for their confidence in me. The Club has had a better year than last year, with a difference of $22,681.00, but still producing a small loss of $4,618.00. Our cashflow is still strong though, at $121,537.00 and our trading accounts have all seen a positive improvement. We are continuing to refurbish areas of the Club as finances allow. There are always issues with an old building but we are managing to overcome most of them and keep the Club looking fresh and inviting. The back deck needs some major work on it to expand it and provide a covering. At the same time we want to expand the area and tie it in with the proposed boardwalk. This will give us an enhanced dining experience with great river views. A special thank you to Sharon for her leadership and vision for the Club. She leads a dynamic team who are always willing to ensure patrons receive excellent service. Sharon is always looking to upgrade the facilities and to ensure that we stay on top of new developments for our poker machine installation. The office, bar and kitchen staff have all worked to ensure the quality of the Club is maintained and for this, I thank them. We are still attracting visitors to the Club, especially those from the RV area at the showground. Many of these are return visitors and some have become Members as they are regular visitors to the area.

14



I would like to thank my fellow Board members for their support and commitment to helping in the Club when asked. A special thank you to Mary Want who is always available to help with the clearances and the office on Sunday mornings. Mary has given many years to the Club and for this we are very thankful. I offer my heartfelt condolences to those who have suffered the loss of a loved one during the past year. And rest in peace those Members we have lost. Finally I would like to thank all the members who have supported the Club over the last twelve months and I look forward to seeing all of you here over the next twelve months.

Joy de Roos President

www.mlcsc.com.au

15

DIRECTORS REPORT 2017

DIRECTORS’ REPORT The directors present this report on the company for the financial year ended 30 June 2017 DIRECTORS The following persons held office of director during the year or since the end of the year. D Jones - President [Resigned March 2017] / J De Roos - President [Appointed March 2017], R. Jones - Vice-President, W. Baker - Director, M. Want - Director, N. Tollis - Director, D. Noel - Director, A. Hilliard - Director and S. Hilliard - Director. The directors have been in office since the start of the financial year to the date of this report unless otherwise stated. DETAILS OF DIRECTORS ATTENDANCE AT MEETINGS Since the commencement of the 2016/2017 financial year there have been twelve Directors Meetings. Detail of attendance are as follows:

Number Eligible to Attend

Present

Apologies

J De Roos

12

12

0

W Baker

12

8

4

M Want

12

12

0

N Tollis

12

12

0

A Hillard

11

8

3

S Hillard

12

11

1

D Noel

8

7

1

R Jones

8

8

0

D Jones

11

10

1

K Jones

4

4

0

P Brossman

4

1

3

Name

18



DIRECTORS The qualifications, experience and special responsibilities of the company’s directors are as follows: Joy De Roos Cert III in Admin & Management. 40 Years in Management Positions. Working in aged care. Maclean Services Club Director for 8 years, Vice President for 3.5 years & President for 6 months. Current

President & Representative on all Committees

Roger Jones Served in Royal Australian Navy. Club Management Qualifications. Club Manager for 25 years. Club Directorships – 11 years. Maclean Services Club Vice President, 1 year. Registered Justice of the Peace. Current

Vice President

William Baker Retired. Professional Fisherman. Director, Chairperson & Acting General Manager for Clarence River Fisherman’s Co-op. Director of Sydney Fishmarket. Foundation Director of Maclean Services Club. Director for 9 years, Vice President for 10 years, President for 2 Years. Current

Director

Mary Want Retired. 25 years as a Health Administrator. 28 Years as a Director/Treasurer Maclean Services Club. Current

Director

www.mlcsc.com.au

19

Neil Tollis Retired. 6 Years in Naval Reserve. 2 years in Naval Reserve. 40 years as a Countrywide Autoparts Sales Rep. Director of Maclean Services Club for16 years. Current

Director

Susan Hilliard Cert III & IV in Business Admin. Worked in numerous admin positions over working life. Past Treasurer for Student ass. for TAFE & for Lower Clarence Rowing Club. Registered Justice of the Peace. Maclean Services Club Director for 3 years. Current

Director

Allan Hilliard Retired. Operated own Bricklaying Business. Foreman during construction for Major Building Developments. Maclean Services Club Director for 4 years. Current

Director

Dennis Noel Served in the RNSWL. Previous positions include Company Executive, Retail & Sales Manager & Director positions. Club President of Lower Clarence Computer Club. SubBranch Vice President. Maclean Services Club Director for 1 year. Current

Director

MEMBERSHIP The number and class of members registered in the Register of Members at the date of this report are: Classification

Numbers

Life Members

3

Service Members

93

Associate Members

2056

Total Members

2152

20



PRINCIPAL ACTIVITIES The company operates as a registered club in NSW. The principal activities of the company during the financial year were, the provision of social activities for members and guests. No significant change in the nature of these activities occurred during the year. OPERATING RESULTS The net loss after providing for income tax amounted to $4,618. REVIEW OF OPERATIONS A review of the operations of the company during the financial year and the results of those operations are as follows:

Bar Trading

Keno Trading

2017

2016

Sales

553,352

Gross Profit

310,068

476,420 242,668

Gross Profit Percentage

56.03%

50.94%

49,438

42,138

1,594

1,557

47,844

40,581

Sales

713,688

Expenses

650,343

705,150 595,045 110,105

Sales Expenses Keno Trading Profit/(Loss)

Kitchen Trading

Kitchen Trading Profit/(Loss)

63,345

Revenue

929,985

Expenses

191,607

Poker Machine Trading Profit/(Loss)

738,378

896,196 163,115 733,081

186,576

152,910

Total Operating Income

2,433,039

2,272,814

LESS: Total Expenses

2,437,657

2,300,113

(4,618)

(27,299)

Poker Machine Trading

Other Income

Operating Profit/(Loss) before Income Tax

www.mlcsc.com.au

21

The total Operating Loss of $4,618 was a significant improvement on the loss of $27,299 in the previous year. When adding back accounting adjustments for amortisation, depreciation, loss on disposal of assets and profit on disposal of assets the profit for the year was $121,103 compared with $111,881 in the previous year. (i)

Bar Trading Sales increased by $76,932 [16%] Gross profit increased by $67,400 [27.77%]

(i)

Poker Machine Revenue The poker machine net surplus increased by $5,297 [0.72%]

(i)

Kitchen Trading Sales increased by $8,538 [1.21%] Gross profit was $63,345

(i)

Wages Total wages paid to employees (Bar & Kitchen) increased by $81,528 [10.96%]

(i)

Electricity and Gas The cost of electricity increased by $7,686 [14.36%] The cost of gas increased by $5,182 [127.10%]

(i)

Donations / Sponsorships Sponsorships and donations of $12,684 were made this year. [2016 $6,780]

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the entity, the result of those operations, or the state of affairs of the entity in future financial years. 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 officer or auditor of the company. Auditors’ Independence Declaration A copy of the auditors’ independence declaration 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: J De Roos - President

Director: R Jones - Vice President

22


AUDITORS’ INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF MACLEAN-LOWER CLARENCE SERVICES CLUB LIMITED We declare that, to the best of our knowledge and belief, during the year ended 30 June 2017 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.

Name of Firm: D W BROWN ACCOUNTANCY SERVICES PTY LTD Chartered Accountants Name of Partner: Address:

5

DARRELL BROWN 8 River Street, MACLEAN NSW 2463

Dated this 2nd day of October 2017

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 Note

2017

2016

2,272,814

Income Revenue

2

2,427,053

Other income

2

5,986 2,433,039

2,272,814

Changes in inventories of finished goods and work in progress

(567,156)

(478,050)

Raw materials and consumables used

(490,689)

(484,446)

(8,196)

(7,965)

(24,491)

(21,224)

(8,476)

(7,935)

Depreciation and amortisation expenses

(131,707)

(136,131)

Employee benefits expenses

(535,612)

(498,587)

(499)

(499)

(6,760)

(6,622)

(664,071)

(658,654)

(4,618)

(27,299)

(4,618)

(27,299)

(4,618)

(27,299

Expenditure Accountancy expenses Advertising expenses Auditors' remuneration

Finance costs

3

4

Freight and cartage Other expenses

Loss for the year

4

Total comprehensive income for the year

24



STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Financial assets Property, plant and equipment Intangible assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and Other Payables Borrowings Other current liabilities TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Borrowings Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Reserves Retained earnings TOTAL EQUITY

2017

2016

5

343,162

328,195

6

19,037

17,020

7

33,617

33,750

8

631

1,130

396,447

380,095

9

200

200

10

537,804

610,688

11

610,840

610,840

1,148,844

1,221,728

1,545,291

1,601,823

12

152,817

155,011

13

75,587

119,507

14

1,394

1,834

229,798

276,352

13

9,191

19,503

15

31,829

26,876

41,020

46,379

270,818

322,731

1,274,473

1,279,092

584,238

584,238

690,235

694,854

1,274,473

1,279,092

16

www.mlcsc.com.au

25

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

Retained earnings $ Balance at 1 July 2015

722,153

Opening balance for the year {27,299)

Balance at 1 July 2015

694,854

Profit attributable to equity shareholders

{4,618)

Balance at 30 June 2017

690,236

Total $ 722,153

575,000

Profit attributable to equity shareholders

26

Asset Revaluation Reserve $

Family Assistance Fund Reserve $

9,238

584,238 {27,299)

575,000

9,238

1,279,092 {4,618)

575,000


9,238

1,274,474


STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Note

2017

2016

2,422,175

2,273,094

(2,243,794)

(2,065,664)

(47,518)

(65,454)

{9,327)

(13,835)

121,536

128,141

7,320

3,049

Payments for property, plant and equipment

(60,156)

(131,398)

Net cash used in investing activities

(52,836)

(128,349)

499

499

Repayment of borrowings

(54,232)

(63,968)

Net cash used in financing activities

(53,733)

(63,469)

14,967

(63,677)

328,195

391,872

343,162

328,195

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees General administration expenses and direct expenses Interest Paid Net cash provided by operating activities

18

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings

Net increase (decrease) in cash held Cash at beginning of financial year Cash at end of financial year

5

www.mlcsc.com.au

27

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 1

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial statements cover Maclean-Lower Clarence Services Club Limited as an individual entity. Maclean-Lower Clarence Services Club Limited is a company limited by guarantee, incorporated and domiciled in Australia.

Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The financial statements were authorised for issue on 02 October 2017 by the directors of the company.

Accounting Policies Inventories Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined using the first-in-first-out basis and is net of any rebates and discounts received. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the reporting date and inventory is written down through an obsolescence provision if necessary.

28



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less. where applicable, any accumulated depreciation and impairment.

Plant and equipment Plant and equipment are measured using the cost model.

Depreciation Property, plant and equipment, is depreciated on a straight line basis over the assets useful life to the Company, commencing when the asset is ready for use. Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life.

Financial Instruments Recognition Financial instruments are initially recognised at cost on the trade date, which includes transaction costs, when the contractual rights or obligations exist. After initial recognition, financial instruments are measured as set out below:

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.

Held to maturity investments Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities. It is the company’s intention to hold these investments to maturity.

Financial liabilities Non-derivative financial liabilities are brought to account at amortised cost, comprising original debt less principal payments and amortisation.

www.mlcsc.com.au

29

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Impairment The company assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of available-forsale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. Impairment losses are recognised in the income statement.

Impairment of Non-Financial Assets At the end of each reporting period the company determines whether there is an evidence of an impairment indicator for non-financial assets. Where this indicator exists the recoverable amount of the asset is estimated. Where assets do not operate independently of other assets, the recoverable amount of the relevant cash-generating unit (CGU) is estimated. The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit. Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss. Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss , except for goodwill.

Intangibles Other Intangible The preliminary expenses incurred during the set up of the company have been capitalised and are valued in the accounts at cost. No amortisation is applied to these costs. Poker Machine Licences represent an intangible asset. Upon transition to AIFRS the company recognised the Poker Machine Licences as at 1 July 2004 at their fair value. These intangibles will continue to be valued at deemed cost being the fair value at 1 July 2004. The Directors believe that these licences have an indefinite useful life, therefore, they will not be amortised.

30



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability,consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cash flows. Changes in the measurement of the liability are recognised in profit or loss.

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 at the present value of management’s best estimate of the outflow required to settle the obligation at the end of the reporting year. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the unwinding of the discount is taken to finance costs in the statement of other comprehensive income.

Cash and Cash Equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Revenue and Other Income Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the company and specific criteria relating to the type of revenue as noted below, has been satisfied. Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

www.mlcsc.com.au

31

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Sale of goods Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time when risks and rewards are transferred and there is no longer any ownership or effective control over the goods.

Dividend revenue Dividends are recognised when the right to receive payment is established.

Rendering of services Revenue in relation to rendering of services is recognised depends on whether the outcome of the services can be measured reliably. If this is the case then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be reliably measured then revenue is recognised to the extent of expenses recognised that are recoverable.

Other income Other income is recognised on an accruals basis when the company is entitled to it.

Borrowing Costs All borrowing costs are recognised as an expense in the period in which they are incurred.

Comparative Amounts Comparatives are consistent with prior years, unless otherwise stated. Where a change in comparatives has also affected the opening retained earnings previously presented in a comparative period, an opening statement of financial position at the earliest date of the comparative period has been presented. The financial report was authorised for issue on 2 October 2017 by the board of directors.

32




2

2017

2016

2,246,463

2,119,904

128,471

131,245

2,374,934

2,251,149

REVENUE AND OTHER INCOME Revenue Sales revenue: Sale of goods Rendering of services Other revenue: Dividends received Other revenue Total revenue

600 51,519

21,665

52,119

21,665

2,427,053

2,272,814

Other income Profit on sale of property, plant and equipment

5,986

Total other income

5,986

Dividend revenue from: Dividends Received

600

Total dividend revenue

600

Other revenue from: Sundry Income

51,519

21, 665

Total other revenue

51,519

21, 665

www.mlcsc.com.au

33


3

2017

2016

8,476

7,935

1,086,828

993,469

Borrowing Expenses

499

499

Total finance costs

499

499

79,896

84,320

AUDITORS’ REMUNERATION Auditor’s Remuneration - Audit of Accounts

4

LOSS FOR THE YEAR Profit before income tax from continuing operations includes the following specific expenses: Expenses Cost of sales

Depreciation of property, plant and equipment Revenue and Other Income Profit on sale of property, plant and equipment

5

CASH AND CASH EQUIVALENTS Cash on Hand Deposits Petty Cash Cash at Bank - Commonwealth Bank (OD Facility) Cash at Bank - Commonwealth Bank

34

5,986


53,606

55,536

5,000

5,000

300

300

230,662

207,066

53,594

60,293

343,162

328,195



2016

343,162

328,195

343,162

328,195

Trade Debtors

6,201

1,763

Prepayments

12,836

15,257

19,037

17,020

Stock on Hand - Bar

6,255

7,270

Stock on Hand - Wine

3,789

3,692

Stock on Hand - Cans & Bottles

4,673

5,416

Stock on Hand - Spirits

6,325

5,717

Stock on Hand - Bar Sundries

3,193

2,713

Stock on Hand - Kitchen

7,682

7,242

Stock on Hand - Raffles

1,700

1,700

33,617

33,750

Reconciliation of cash Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in the statement of financial position as follows: Cash and cash equivalents

6

TRADE AND OTHER RECEIVABLES Current

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short term nature of the balances

7

INVENTORIES Current At cost:

www.mlcsc.com.au

35


8

2017

2016

631

1,130

200

200

2,061,582

2,019,219

(1,523,778)

(1,408,531)

537,804

610,688

OTHER NON-FINANCIAL ASSETS Current Borrowing Expenses

9

FINANCIAL ASSETS Non-Current Shares in Unlisted Companies

10

PROPERTY, PLANT AND EQUIPMENT PLANT AND EQUIPMENT Plant and Equipment: At cost Accumulated depreciation Total Plant and Equipment

Core and Non-Core Property of the Club The Club holds core assets being the Lease of Business premises and car park at 36-38 River Street, Maclean and leasehold improvements. There have been no change in these core assets during the year.

36




2016

Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Leasehold Leased Improvements Plant and Plant and Poker Directors Equipment Equipment Machines Valuation $ $ $ $

Total $

Balance at 1 July 2015

214,879

122,990

Additions

105,348

26,050

131,398

Disposals

(6,288)

3,801

(2,487)

Depreciation expense

(53,347)

(30,973)

(51,811)

(136,131)

Balance at 30 June 2016

260,592

121,868

228,229

610,689

12,351

47,805

60,156

(1,334)

(1,334)

Additions Disposals

280,040

617,909

Depreciation expense

(50,913)

(28,983)

(51,811)

(131,707)

Carrying amount at 30 June 2017

222,030

139,356

222,030

176,418

www.mlcsc.com.au

37


11

2017

2016

10,160

10,160

Poker Machine Licences

600,680

600,680

Net carrying amount

610,840

610,840

Total

610,840

610,840

10,160

10,160

Poker Machine Licences

600,680

600,680

Closing carrying value at 30 June 2017

610,840

610,840

Goods and Services Tax

23,193

31,989

Trade Creditors

56,154

62,303

7,664

7,063

65,806

53,656

152,817

155,011

INTANGIBLE ASSETS Preliminary Expenses - at cost

Reconciliation of Formation Expenses Preliminary Expenses - at cost

12

TRADE AND OTHER PAYABLES Current

Other Creditors and accruals Provision for Annual Leave & Sick Leave

38




2016

75,587

119,507

Chattel Mortgage - Esanda

9,504

20,908

Unexpired Interest

{313)

{1,405)

Total non-current borrowings

9,191

19,503

84,778

139,010

1,394

1,834

Provision for Long Service Leave

31,829

26,876

Total provisions

31,829

26,876

Analysis of Total Provisions

31,829

26,876

Non-current

31,829

26,876

All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value

13

BORROWINGS Current Loans - Secured

Non-Current

Total borrowings

14

OTHER LIABILITIES Current Income in Advance

15

PROVISIONS

www.mlcsc.com.au

39


16

2016

694,853

722,153

{4,618)

{27,299)

690,235

694,854

RETAINED EARNINGS Retained earnings at the beginning of the financial year

Net loss attributable to members of the company Retained earnings at the end of the financial year 17

2017

EVENTS AFTER THE REPORT PERIOD The directors of the company have authorised the financial report to be issued to the members/shareholders as at 2nd October 2017. The directors of the company have the power to amend the financial report after issue, should events arise that require them to do so. As at 2nd October 2017 the directors are not aware of any conditions that existed at the reporting date that require changes to the disclosures made in the financial report. As at 2nd October 2017 the directors are not aware of any non-adjusting events after the reporting date that could influence the economic decisions of users of this financial report.

40




18

2017

2016

(4,618)

(27,299)

Amortisation

47,614

47,614

Depreciation

78,106

88,517

(Increase) Decrease in current inventories

133

965

(Increase) Decrease in current receivables

(4,438)

607

2,421

(13,554)

Increase (Decrease) in trade creditors

(6,149)

17,907

Increase (Decrease) in Other Creditors

(8,195)

3,064

Increase (Decrease) in current provisions

12,150

18,821

4,953

(8,174)

(440)

(327)

121,537

128,141

CASH FLOW INFORMATION Reconciliation of Cash Flow from Operations with Profit after Income Tax Loss after income tax Non-cash flows in profit

Changes in assets and liabilities, net of the effects of purchase and disposals of subsidiaries

(Increase) Decrease in prepayments

Increase (Decrease) in non-current provisions Increase (Decrease) in income in advance

www.mlcsc.com.au

41


19

2016

FINANCIAL RISK MANAGEMENT The company is exposed to a variety of financial risks through its use of financial instruments. The company's overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets. Financial Assets Cash and cash equivalents

338,162

323,195

Loans and receivables

6,201

1,763

Deposits

5,000

5,000

349,363

329,958

Bank loan secured

75,587

119,507

Trade and other payables

87,011

101,355

9,191

19,503

171,789

240,365

Total Financial Assets Financial Liabilities

Chattel Mortgage Total Financial Liabilities

The company does not have any derivative instruments at 30 June 2017.

42



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Objectives, Policies and Processes Risk management is carried out by the company’s risk management committee under the delegated power from the Board of Directors. The Finance Manager has primary responsibility for the development of relevant policies and procedures to mitigate the risk exposure of the company, these policies and procedures are then approved by the risk management committee and tabled at the board meeting following their approval. Reports are presented at each Board meeting regarding the implementation of these policies and any risk exposure which the Risk Management Committee believes the Board should be aware of. Specific information regarding the mitigation of each financial risk to which company is exposed is provided below. Weighted Average Effective Interest Rate %

2017

2016

75,587

119,507

75,587

119,507

Floating Rate Instruments Bank loan secured Total floating rate financial liabilities

8.50

www.mlcsc.com.au

43

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Liquidity Risk The Company presently has loans with the Commonwealth Bank Maclean. The balance owing on these loans as at 30 June 2017 is $75,587. Fixed Interest Rate Maturing 2017

Weighted Average Effective Interest Rate %

Within 1 Year $

1 to 5 Years $

Overs Years $

Total $

Financial liabilities due for payment Bank loan secured

8.50

52,125

Chattel Mortgage

7.36

9,191

Total expected outflows Net (outflow)/ inflow on financial instruments

44

23,462

75,587 9,191

61,316

23,462

84,778

(61,316)

(23,462)

(84,778)



NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Fixed Interest Rate Maturing 2016

Weighted Average Effective Interest Rate %

Within 1 Year $

1 to 5 Years $

Overs Years $

Total $

Financial liabilities due for payment Bank loan secured

8.50

52,125

67,382

119,507

Chattel Mortgage

7.36

10,312

9,191

19,503

62,437

76,573

139,010

(62,437)

(76,573)

(139,010)

Total expected outflows Net (outflow)/ inflow on financial instruments

The company does not hold any financial assets with terms that have been renegotiated, but which would otherwise be past due or impaired. The other classes of receivables do not contain impaired assets.

www.mlcsc.com.au

45

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 Fair Values 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 statement of financial position. 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. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

Carrying Amount $

2017 Net Fair Value $

Carrying Amount $

2016 Net Fair Value $

Financial Assets Cash and cash equivalents

338,162

338,162

323,195

323,195

Loans and receivables

6,201

6,201

1,763

1,763

Deposits

5,000

5,000

5,000

5,000

349,363

349,363

329,958

329,958

Bank loan secured

75,587

75,587

119,507

119,507

Trade and other payables

87,011

87,011

101,355

101,355

9,191

9,191

19,503

19,503

171,789

171,789

240,365

240,365

Total Financial Assets Financial Liabilities

Chattel Mortgage Total Financial Liabilities

46




COMPANY DETAILS The registered office of the company is: Maclean-Lower Clarence Services Club Limited 36-38 River Street, MACLEAN NSW 2463 The principal place of business is: 36-38 River Street, MACLEAN NSW 2463

21

SEGMENT REPORTING Maclean-Lower Clarence Services Club Limited operates in the Licenced Club Industry at 36-38 River Street Maclean NSW.

www.mlcsc.com.au

47

DIRECTORS’ DECLARATION The directors of the company declare that: 1. The financial statements and notes, as set out on pages 1 to 22, for the year ended 30 June 2017 are in accordance with the Corporations Act 2001 and: (i)

comply with Accounting Standards, which, as stated in basis of preparation Note 1 to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and

(ii)

give a true and fair view of the financial position and performance of the company.

3. 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:

J De Roos - President Dated this 2nd day of October 2017

48


AUDITORS REPORT 2017

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MACLEAN-LOWER CLARENCE SERVICES CLUB LIMITED A.B.N. 89 001 663 494 Report on the Financial Report We have audited the accompanying financial report of Maclean-Lower Clarence Services Club Limited which comprises the statement of financial position as at 30 June 2017 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101: Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards (IFRS).

Auditors’ Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

50



Independent In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the company, would be in the same terms if given to the directors as at the time of this auditor’s report.

Auditors’ Opinion In our opinion: (a) the financial report of Maclean-Lower Clarence Services Club Limited is in accordance with the Corporations Act 2001, including: (i)

giving a true and fair view of the company’s financial position as at 30 June 2017 and of its performance for the year ended on that date; and

(ii)

complying with Australian Accounting Standards and the Corporations Regulations 2001;and

(b) The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Name of Firm: D W BROWN ACCOUNTANCY SERVICES PTY LTD Chartered Accountants

Name of Partner: DARRELL BROWN

Address:

58 River Street, MACLEAN NSW 2463

Dated this 2nd day of October 2017

www.mlcsc.com.au

51

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 2017 2017

2016

2,246,463

2,119,904

32,050

33,340

Purchases

490,689

484,446

Closing Stock

(31,917)

(32,050)

490,822

485,736

3,295

2,943

Depreciation

28,983

30,973

Analysis Expenses

18,587

21,955

Poker machine Supplementary Tax

15,643

36,924

Service Fees

17,820

46,567

Leasing charges - System 7000 eCo

26,696

26,696

Lease - Poker Machine

74,057

SALES Sales LESS: COST OF GOODS SOLD Opening Stock

LESS: MANUFACTURING COSTS Bar Waste

Poker Machine Expenses Wages - Kitchen

9,821 374,701

325,731

12,540

8,186

Repairs & Maintenance

1,594

1,557

Consumables

7,685

4,076

Cooking Oil

4,584

2,125

596,006

507,733

1,159,635

1,126,435

Gas

GROSS PROFIT FROM TRADING

52




2016

Commissions Received

14,823

15,259

Subscription

10,172

14,573

Market Prize

103,476

98,663

OTHER INCOME

Sponsorship Dividends Received Sundry Income Profit on sale of property, plant and equipment

2,750 600 51,519

21,665

5,986 186,576

152,910

1,346,211

1,279,345

8,196

7,965

Advertising

24,491

21,224

Amortisation

51,811

51,811

Auditor's Remuneration

8,476

7,935

Bank Charges

4,821

4,306

499

499

Cleaning

25,240

21,664

Contract Cleaning

48,000

48,000

Depreciation

50,913

53,347

Donations

8,684

1,130

Electricity

61,202

53,516

Entertainment Expenses

5,103

6,844

Freight & Cartage

6,760

6,622

34,133

33,785

9,327

13,835

EXPENSES Accountancy Fees

Borrowing Expenses

Insurance Interest Paid Loss on Sale of Non-Current Assets Market Expenses

3,049 122,168

118,285

www.mlcsc.com.au

53


2016

90,624

92,359

Motor Vehicle Expenses

6,519

6,508

Night Security

7,626

7,070

Permits, Licences & Fees

3,707

2,004

Printing & Stationery

22,464

23,571

Promotions

64,581

62,552

Members Amenities

Protective Clothing

3,034

Rates

11,786

12,715

Rent

49,554

49,406

Repairs & Maintenance

37,345

48,414

Sky channel

33,668

32,757

Sponsorship

4,000

5,650

11,387

12,060

3,502

6,213

73,769

68,629

6,983

5,021

450,456

417,898

1,350,829

1,306,644

(4,618}

(27,299}

Staff Training & Welfare Subscriptions Superannuation Contributions Telephone - Office Wages Loss before income tax

54




2016

292,457

256,023

7,270

4,500

119,175

121,871

{6,255)

{7,270)

120,190

119,101

Bar Waste

3,295

2,943

Gas - Beer

3,281

4,109

Consumables

7,685

4,076

14,261

11,128

158,006

125,794

BULK BEER TRADING STATEMENT Sales LESS: COST OF GOODS SOLD Opening Stock Purchases Less Closing Stock

LESS: MANUFACTURING COST


www.mlcsc.com.au

55


2016

64,797

51,771

3,692

4,150

Purchases

23,960

21,443

Less Closing Stock

{3,789)

(3,692)

23,863

21,901

40,934

29,870

WINE TRADING STATEMENT Sales LESS: COST OF GOODS SOLD Opening Stock


56




2016

83,928

75,013

2,713

4,926

Purchases

35,447

31,638

Less Closing Stock

(3,193)

(2,713)

34,967

33,851

48,961

41,162

SOFTDRINK TRADING STATEMENT Sales LESS: COST OF GOODS SOLD Opening Stock


www.mlcsc.com.au

57


2016

61,844

50,855

5,416

5,200

Purchases

31,992

29,999

Less Closing Stock

(4,673)

(5,416)

32,735

29,783

29,109

21,072

PACKAGED BOTTLES & CANS TRADING STATEMENT Sales LESS: COST OF GOODS SOLD Opening Stock


58




2016

929,985

896,196

Depreciation

28,983

30,973

Analysis Expenses

18,587

21,955

Poker Machine Supplementary Tax

15,643

36,924

Service Fees

17,820

46,567

Leasing charges - System 7000 eCo

26,696

26,696

Lease - Poker Machine

74,057

Software Maintenance

9,821

POKER MACHINE STATEMENT Poker Machine Revenue LESS: MANUFACTURING COST


191,607

163,115

738,378

733,081

www.mlcsc.com.au

59


2016

49,438

42,138

1,594

1,557

47,844

40,581

CLUB KENO & TAB STATEMENT Club Keno & TAB Revenue LESS: MANUFACTURING COST Repairs & Maintenance GROSS PROFIT FROM TRADING

60




2016

713,688

705,150

7,242

7,914

262,239

262,440

{7,682)

{7,242)

261,799

263,112

Bar Waste

374,701

325,731

Gas - Beer

9,259

4,077

Consumables

4,584

2,125

388,544

331,933

63,345

110,105

KITCHEN TRADING STATEMENT Sales - kitchen LESS: COST OF GOODS SOLD Opening Stock Purchases Less Closing Stock

LESS: MANUFACTURING COST


www.mlcsc.com.au

61


2016

50,326

42,758

5,717

6,650

Purchases

17,876

17,055

Less Closing Stock

{6,325)

(5,717)

17,268

17,988

33,058

24,770

SPIRIT TRADING STATEMENT Sales LESS: COST OF GOODS SOLD Opening Stock


62



www.mlcsc.com.au

63

Maclean Services Club 36-38 River St PO Box 6 Maclean NSW 2463

Phone: 02 6645 2946 Kitchen: 02 6645 2556 Fax: 02 6645 4235

Email: [email protected] Web: www.mlcsc.com.au

2016-2017 ANNUAL REPORT - mlcsc.com.au

Recommend Documents