TAMWORTH GOLF CLUB LIMITED
          THIRTY EIGHTH ANNUAL REPORT AND FINANCIAL STATEMENTS 2009
                         OF...
TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022
                             ORDINARY RESOLUTION
                           ...
TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022

  TAMWORTH GOLF CLUB LIMITED THIRTY EIGHTH ANNUAL REPORT AND FINANCIAL
    ...
Again, we travelled to several golf clubs who have on-course accommodation and can see some
really good benefits for the C...
TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022

FINANCE SUB-COMMITTEE REPORT

The 2009 financial year was always going to b...
The budget that has been set for 2010 forecasts a net profit of $47,000 with an operating profit
before depreciation of $2...
I would like to specially mention Scott for winning the PGA Club Professional of the Year award. I
was in attendance at th...
Detail   Year    Year    Year    Year     Year
                                   1989    1995    2000    2008     2009
  ...
MARKETING
Expenses                                              25         33         37       149        179
% of Total S...
60’s as the higher this figure is (generally speaking), the less pressure there is on increasing
member subscriptions, gre...
It was also very pleasing to see that Match revenue from members, guests and visitors playing
golf increased by $29,481 (6...
I have to say that I was sad to see Darren Williamson leave our employ, but he has moved to the
Sunshine Coast where is wi...
enjoy. Thanks also to Scott, Tiffany and the boys in the Pro Shop for the help they so patiently
give the ladies receive i...
The Sal/Wages increase from 2008 to 2009 was in part due to us having a full contingent of staff
during the whole of 2009,...
To the marvellous team from the Pro-shop Scott Roworth, Tiffany, Brock, Browny and Darren,
they carry out their roles in a...
Yours in Golf
Ken Mundy
Club Captain




                TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022

        TROPHY WIN...
April:    K Rule
Open Vets Champion: J. Pickrell         May:      R Wratten
B Grade Vets Champion: P King           June:...
G O’Neile      C Escott     M Cullen        B Rumble
D Ashford
                    WINNERS OF CLUB EVENTS
EVENT           ...
2 Man Team Event   North Tamworth Rotary      D Keech & T Moir
Mixed 4BBB S/Ford  North Tamworth Rotary      G & L.Hibbard...
Ind Stableford          T W Signs                A Ruttley
Ind Stableford          Hancocks                 J Jeffery
2 Ma...
Individual Stableford   Johnston & Sartori Fin. Plan R Gill
Individual v Par        Tam Regional Council        J Campbell...
Individual Stableford     Bankwest                   R Smith
Individual Stableford     Tam. Chainsaw & Mower B Thorne
2 Ma...
Experience      Responsibilities


HASLAM, Lou           Company Director           3 Year        President
              ...
Mr C Morris *                              5                                5
(Until May 2009)

Mr K Sartori *            ...
Student                                                8                        11
Junior - Men                           ...
No matters or circumstances have arisen since the end of the financial year which significantly
affected or may significan...
2.2     A contract is any commercial arrangement whether written or not.

2.3     In the reporting period there was one (1...
DIRECTORS and EMPLOYEES:

6.2    In the reporting period the club incurred no costs for the overseas travel of DIRECTORS
 ...
11.1     In the reporting period the club made no legal settlements with either a director or club
         employee. Bein...
b. no contraventions of any applicable code of professional conduct in relation to the audit.



MALVERN MATHEWS SMITH



...
The Directors of the company are responsible for the preparation and fair presentation of the
financial report and have de...
MALVERN MATHEWS SMITH




William A. Malvern (Partner)
Registered Company Auditor (# 3420)
234 Marius Street,
TAMWORTH 234...
Cost of Goods Sold                                                                332,949      252,994
 Employee Expenses ...
NON-CURRENT ASSETS:-
 Property Plant & Equipment                                         7A    5,982,359     4,732,448
 Ot...
Net Cash Inflow from Operating Activities                                              91,580     192,001

 Cash Flows fro...
TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022
     STATEMENT OF CHANGE IN EQUITY FOR THE YEAR ENDED 31ST DECEMBER, 2009

 ...
TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022

   NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2009

Not...
Increases in the carrying amount arising on revaluation of land and buildings are credited to
   the revaluation reserve i...
Held to maturity Investments

   These investments have fixed maturities, and it is the group’s intention to hold these
  ...
f) Provisions

   Provisions are recognised when the company has a legal or constructive obligation, as a
   result of pas...
m) Goods and Services Tax (GST)

   Revenues, expenses and assets are recognised net of the amount of GST, except where th...
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
TAMWORTH GOLF CLUB LIMITED.doc
Upcoming SlideShare
Loading in …5
×

TAMWORTH GOLF CLUB LIMITED.doc

3,041 views
2,960 views

Published on

Published in: Sports
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
3,041
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

TAMWORTH GOLF CLUB LIMITED.doc

  1. 1. TAMWORTH GOLF CLUB LIMITED THIRTY EIGHTH ANNUAL REPORT AND FINANCIAL STATEMENTS 2009 OFFICE BEARERS AS AT 31/12/09 PRESIDENT: Lou HASLAM VICE PRESIDENT: Arthur RUTTLEY CAPTAIN: Ken MUNDY VICE CAPTAIN: Ashley CASTLES HON. TREASURER: Gerry JOHNSTON LADIES GOLF CONVENOR: Jan HARRIS COMMITTEE Gary ARMSTRONG, Col ESCOTT, W (Bill) HICKS NOTICE OF MEETING Notice is hereby given that the Thirty Eighth Annual General Meeting of Tamworth Golf Club Limited (seventy two years as Tamworth Golf Club) will be held at the Clubhouse, Mahony Avenue Tamworth, on Monday the 17th May 2010 at 8.00pm BUSINESS 1. To confirm the minutes of the last Annual General Meeting. 2. To adopt the Financial Reports & Audited Financial Statements of Tamworth Golf Club Limited for the year ended 31st December, 2009. 3. To receive and adopt the Committee Reports. 4. To deal with any business of which due notice has been given: 4.1 Director’s expenditure for the ensuing year – see attachment # 1 4.2 Life Member nomination of Dr. John W. Killen – see attachment # 2 5. To elect the office-bearers for the ensuing year. Nominations close Monday 10th May 2010 at 6.00pm. Directors G. Armstrong, C. Escott and W. Hicks having been elected under the Triennial Rule for 1 year must resign at this AGM, however, “a person whose term of office as a member of the governing body under the triennial rule expires is not for that reason ineligible for election for a further term” (Clause 6). The Director positions to be filled at this AGM will be for a 3 years. 6. To transact any other business that may be brought forward in accordance with the Articles of Association. Dated 31st March 2010 By direction of the Board .......................................................... Richard Watt Chief Executive Officer
  2. 2. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 ORDINARY RESOLUTION (Attachment # 1) (A) That the members hereby approve and agree to expenditure by the Club, until the Annual General Meeting in 2010, for the following: (i)The reasonable costs of Directors attending seminars, lectures, and other educational activities as determined by the Board from time to time; (ii) The reasonable cost of meals and beverages for each Director before or after a Board or Committee meeting on the day of that meeting when such meeting coincides with a normal meal time; (iii)The reasonable costs (including travel and accommodation expenses) of Directors attending meetings, conferences and trade shows conducted by Clubs NSW, the Club Managers Association, the New South Wales Golf Association and other such conferences and trade shows as determined by the Board from time to time; (iv)The reasonable costs associated with the entertainment of special guests of the club and/or other promotional activities, either within the club or elsewhere, as approved by the Board from time to time. (B) The members acknowledge that the benefits in paragraph (A) are not available for members generally but are only for those who are Directors of the Club. NOTES TO MEMBERS REGARDING THE ORDINARY RESOLUTION * Parts (i) and (iii) of the Ordinary Resolution is to have the members in General Meeting approve expenditure by the Club for Directors to attend seminars, lectures, trade displays and other similar events to be kept abreast of current trends and developments which may have a significant bearing on the club. * Part (ii) of the Ordinary Resolution is to have the members in General Meeting approve expenditure by the Club for each of the Directors to consume a meal and refreshments before or after Board/Committee meetings when that meeting corresponds with a normal meal time. * Part (iv) of the Ordinary Resolution is to have the members in General Meeting approve expenditure by the Club for the entertainment of sponsors and special guests, within the Club or elsewhere, for the positive promotion of Tamworth Golf Club. * The Ordinary Resolution must be passed as a whole and cannot be amended from motions from the floor of the meeting. * To be passed the Ordinary Resolution must receive votes in its favour from not less than a simple majority of those members, who being entitled to do so, vote in person at the meeting. * For the purposes of the Registered Clubs Act the Directors support and recommend that the Ordinary Resolution put forward be adopted by the members. Dated: 31st March 2010 By direction of the Board …………………………………. Rick Watt Chief Executive Officer
  3. 3. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 TAMWORTH GOLF CLUB LIMITED THIRTY EIGHTH ANNUAL REPORT AND FINANCIAL STATEMENTS – 2009 PRESIDENT’S REPORT It is with pleasure that I submit my first annual report. It certainly has been an interesting year with the successful opening of our new café restaurant and the breaking of the draught in late 2008, at least in this part of Australia, which has seen our course come back to possibly its best ever condition. Almost all of our key success indicators (“ksi”) were positive in 2009 where we have seen total income increase dramatically, cost of goods sold as a percentage of total income reduced, including salary/wages and beverage salary/wages. The number of playing members has increased, and the number of rounds of golf increased. The only ksi that did not improve in the year was gaming and that finished some $20,000 short of the 2008 figure. We probably have a little work yet to complete this room and make it a little more player friendly. And, as you would expect total “marketing” and total “other” expenses went up over last year by around $74,000 in total, the majority of which was what we spent extra on getting the new restaurant up and going. Much of this expenditure won’t be repeated next year. It is fair to say that we achieved what we set out to do in 2009 and that was to cover the increased interest costs, the increased depreciation, and the extra expenditure related to the launch of the restaurant and still have enough for capital repayments. 2010 will be a fairer test of this as we will have the new facilities operating for the full 12 months instead of only 24 weeks as was the case in 2009. The capital repayments don’t actually start until mid 2011 as we took out a 15 year loan with the first 2 years interest only. Your Board has also been looking at solving the long term problem of water and inspected the Pennant Hills Golf Club’s new water reclamation plant that has been running now for some 12 months. It is a tremendous project and would, I would imagine, solve many golf clubs water issues. However, it was pretty expensive and well beyond our means at the present time. The Tamworth Regional Council has been contacted and many discussions later we see that it has now commissioned a consultant to look at bringing treated sewer water back into Tamworth from Westdale Sewerage Plant for public parks and gardens and sports grounds, this may be expanded to include the Tamworth Golf Club and the Tamworth Jockey Club. This would be our preferred option even though this treated water would still require additional filtration prior to use, as we would be part of a larger and more efficient plan it would be much cheaper for the stakeholders involved. No doubt we might have to commit some capital to such a project, or more probably pay for the treated water we use in the future, but it certainly seems like the best option for us and it would provide the minimum 250 megalitres of “draught proof” water that we need to become immune to the weather conditions. We are presently building the 2nd golf cart shed, and should be finished by the end of April or even before. We are considering the purchase of a “courtesy bus” to assist in attracting motel guests in the area to our facilities. The major project we are looking at to take us into the future is on-course accommodation, we propose a very classy motel of up to 50 rooms and possibly a day spa.
  4. 4. Again, we travelled to several golf clubs who have on-course accommodation and can see some really good benefits for the Club. As an example, on a recent golf trip to Melbourne (to see Tiger Woods) Treasurer Gerry, General Manager Rick, Professional Scott and I visited Rosebud Country Club on the Mornington Peninsula near Melbourne where they have established this sort of development. We spoke to both the owner operator of the motel and the General Manager of the Club. The General Manager indicated that he estimated that the motel guest produced sales of some $750,000 in green fees, gaming, beverages and food and that around $350,000 to $400,000 of those sales impacted on that clubs bottom line. Now it is really early days yet to say if we even want to explore this possibility further, but we have taken steps to ensure that the changes in the State planning zoning interpretation of what can and can’t be constructed under the “recreation” zone is maintained for us. Under the old planning interpretation this Club could build a motel, or day spa or tennis facilities or swimming pool or accommodation cabins, but under the proposed new interpretation we could not. Once again the officers of the Tamworth Regional Council have been magnificent to the inception of our ideas and they will amend the new interpretation to allow the Club to undertake such projects into the future, if we so desire. Please keep in mind that no such development can happen unless the members approve it. And no proposal would ever be put forward if it meant that the course would be affected or the Club sold off land, or that it had to fund such a project itself. None of these things would ever happen, but your Board will look into it further and I will report back to you on any progress. Finally, I would like to thank all Directors for their great work during the past 12 months and in particular to Vice President, Arthur for stepping in for me over the past couple of months due to my family commitments. To the General Manager and his staff who have done a great job in the past year in particular, my sincere thanks. Lou Haslam President
  5. 5. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 FINANCE SUB-COMMITTEE REPORT The 2009 financial year was always going to be difficult for the club due to the changes that we were undertaking. We had established a budget that forecast a net loss of $50,000 with an operating profit before depreciation of $120,000. This compares favourably with the actual result of a net loss of $42,076 with an operating profit of $122,357, before depreciation. All in all I think we can be fairly happy with this result, but personally I am disappointed in that we thought at one stage that the new facilities would be open in March 2009 and not 4 months later in July 2009. This would have given us a greater chance to beat budget. With regard to the Course and the water issues that we have been struggling with, the weather has been very kind to us in 2009 which is pretty obvious when you look at the wonderful condition of the Course during this time. Of course, as Treasurer I like it when it rains as I know it will provide a great playing surface, but it also costs us dearly if we lose a day’s play, say on a Wednesday or Saturday. We had 9 of these wash-out days during 2009 which cost us something in the order of $40,000 to $45,000 in lost green fees/comp entry and Spike Bar sales. These are sales that we can never get back. And of course we had the global financial crisis to deal with during the year and despite the uncertainty that it created, we were still able to push our total income past $2.2 million for the first time (an increase of 9.7%), we had just on 10,000 people through the View Café/Restaurant in 24 weeks, beverage sales were nearly $96,000 in the View and sales in the Spike Bar increased by $99,000. Additionally, we were able to increase playing member numbers by 5 (3 rd consecutive year of increases) – whilst this is only a small increase it is against the trend in NSW golf clubs. For a more detailed financial analysis please refer to the General Manager’s report. Based on the evidence of 2009, it would appear that we achieved what we set out to do. That is, cover the interest component, extra depreciation and additional and unavoidable other costs like advertising and still have enough profit left over to cover the principal of the loan that we have taken out, even though the principal repayments don’t commence until 2011. Whilst this assertion (of achieving our goal) won’t be fully tested until the end of 2010 when we can see the result of the first full trading year with the new facilities, we have been encouraged by our 2009 performance.
  6. 6. The budget that has been set for 2010 forecasts a net profit of $47,000 with an operating profit before depreciation of $226,000. Your Board has decided to expend additional capital funds at this time on a 2 nd golf cart/bike shed at a cost of $54,000. Already 20 members have committed to taking up a position, a further 12 members have expressed their interest in taking a position and one of our major sponsors, DTM has shown interest in taking up quite a few of the remaining positions. It looks likely therefore, that this new shed will fill fairly quickly and I would estimate that it should produce a rental income around $12,000 in 2010 and some $16,500 per year from then on. It has been the General Manager’s desire for some time to have a courtesy bus, especially now that we have the Café/Restaurant, as he believes that there are a considerable number of potential customers who will attend this Club if we were to provide a pick-up service to the motels and local residents’ homes. Additionally, he also believes that this service will come in very handy for members as well. As a consequence, we may have a Club courtesy bus sooner rather than later. The only other capital expenditure planned for 2010 is a new Rough Cutter for the Course to be delivered prior to Spring this year at a cost of $28,500, some concrete work under the balcony and a pathway from the driveway through the garden/lawn area leading to the Restaurant outside stairs so as patrons to the Restaurant would be able to, and encouraged, to access and egress the facility directly from the car park. We are also planning to introduce in the next month or so, our customer loyalty points promotion. Briefly, it is envisaged that every purchase by a member in the Spike Bar and in the Gaming room will accumulate points that can, (a) be converted into product like a free beer, or (b) into tickets in our great Harvey Norman promotion for 2010. The more tickets you have in this promotion the greater the chance of winning a very valuable prize. See the newsletter for more detail. It may be that we will expand this Harvey Norman points program to include social rounds of golf and even early payment of 2011 membership subscription fees around December 2010. I would like to take a moment to thank our very good partners in business, in Corey’s Catering and our Professional Scott Roworth. It is very important to the Club that both these people are successful, as their success becomes our success.
  7. 7. I would like to specially mention Scott for winning the PGA Club Professional of the Year award. I was in attendance at the PGA Dinner in Sydney with President Lou and General Manager Rick (and Scott of course) and it was a great feeling that our Professional had won this very prestigious award not only for himself, but also that he did it at our Club and that we could savour the moment as well. Scott was humble as ever but stressed in his response that he was just as proud being nominated by his club for the second year in a row as he was at actually winning the award. I would like to conclude by thanking our major non-golf sponsors in Harvey Norman and DTM. Both these companies have become quite involved with our Club and are providing excellent contributions and support – we are proud to have them on board. I would encourage you our members to support them and all of the clubs sponsors. Finally I would like to extend my personal thanks to Rick for his efforts during 2009, it is a pleasure to work with a person with that experience and knowledge, and of course his very capable and obliging staff, with a special mention to Steve and the boys on the course for their efforts during 2009 and the magnificent condition of the Course. Gerry Johnston TREASURER TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 CHIEF EXECUTIVE OFFICER’S REPORT Format Change In an effort to keep the printing and distribution costs of the annual report to a minimum, and given that we now have 2 years trading experience behind us using the new chart of accounts format that I introduced over 2 years ago, I have discontinued the detailed analysis that I had included for the past 2 years that took up some 8 pages at the back of those reports. In its place I have expanded the usual table of comparative data that appeared in my previous three CEO’s reports to include a much more detailed breakup of the various departments. I hope that those of you who desire to have detailed information will be satisfied with this new approach. Of course, if you do want more information I would be very happy to talk to you prior to the AGM or you can, as you well know, ask me questions on the night.
  8. 8. Detail Year Year Year Year Year 1989 1995 2000 2008 2009 000's 000's STATEMENT OF FINANCIAL PERFORMANCE INCOME: Clubhouse - Beverage Spike 614 708 - Beverage View 0 96 Total Beverage Sales 614 804 - Food 6 30 - House 24 19 - Keno/TAB 9 8 - Poker Machines 284 264 - Pro-Shop 0 0 - Admin 23 18 - Marketing 154 125 Total Clubhouse 590 764 925 1114 1268 % of Total 66% 61% 63% 56% 58% Members - Course 75 83 - Match 449 479 - Membership 366 368 Total Membership 302 491 542 890 930 % of Total 34% 39% 37% 44% 42% TOTAL INCOME 892 1255 1467 2004 2198 COST OF GOODS SOLD - Spike & View 253 333 Total COGS 198 246 246 253 333 COGS % 22% 20% 17% 13% 15% GROSS PROFIT 694 1009 1221 1751 1865 G/Profit % of Total Income 78% 80% 83% 87% 85% G/Profit % of Bev Sales 41% 41% SAL/WAGES Clubhouse Beverage – Spike 180 182 Beverage – View 0 35 Total Bev Sal/Wages 180 217 % of Bev Sales 29% 27% Course 285 303 House 111 70 Keno/TAB 11 10 Marketing 80 81 Poker Machines 106 105 Membership 0 0 Administration 105 106 TOTAL SAL/WAGES 263 428 500 878 892 Sal/Wages as % of Total Income 29% 34% 34% 44% 40%
  9. 9. MARKETING Expenses 25 33 37 149 179 % of Total Sales 3% 3% 3% 7% 8% OTHER Beverage 23 29 Course 139 126 Food 21 62 House 47 85 Keno/TAB 17 19 Match 146 144 Poker Machines 21 21 Pro-Shop 8 13 Membership 0 3 Administration 136 100 TOTAL OTHER 278 335 428 558 602 Other as % of Total Other 31% 27% 29% 28% 27% EBITDA 128 213 256 166 192 % of Total Income 14% 17% 17% 8% 9% INTEREST Loan 4 26 16 16 70 DEPRECIATION Course 72 86 Food 0 0 House 41 47 Keno/TAB 2 4 Poker Machines 16 27 TOTAL DEPRECIATION 49 122 181 131 164 IMPAIRMENT PROFIT/LOSS Adjustments 0 0 0 0 NET PROFIT/LOSS 75 65 59 19 -42 CASH SURPLUS FROM OPERATIONS 124 187 240 150 122 Overview The result for 2009 was a loss of $42,076 compared to a profit Last Year of $18,826. It was always going to be difficult to make a profit in the year that we opened the new facilities (café/restaurant, balcony and gaming room) as we did not have the opportunity of operating for a full year but still incurred a level of expense for TV, radio and print media and staff training and the like, that was unusually high. I believe that the Club performed very well especially when you also consider that we had a significant disruption to business in the first half of the year when the building was going on. Total income (sales & revenue) increased dramatically from $2,004,363 in 2008 to $2,198,210 in 2009, an increase of $193,847 or 9.67%. It is also pleasing to note that Clubhouse Income increased as a percentage of Total Income from 56% in 2008 to 58% in 2009. You can see from the above table that in the years 1989 to 2000 the Club consistently had this percentage well into the 60 percent mark. Our aim is to have a Clubhouse percentage in the mid
  10. 10. 60’s as the higher this figure is (generally speaking), the less pressure there is on increasing member subscriptions, green fees etc. Total Salary/Wages costs amounted to $891,741 in 2009 compared to $877,575 in 2008 an increase of $14,166 or 1.61%, even though our share of the salary/wages for the View amounted to $35,333. Total salary/wages expressed as a percentage of total income was 40.29% compared to 43.78% in 2008. This is a really good result that is a product of both efficient rostering and increased income, and it is in line with our business plan where we have forecast a return back to the high 30 percent mark over the next couple of years. Other expenses were $601,925 in 2009 compared to $558,188 in 2008, an increase of $43,737 or 7.84%. Many of these expenses won’t be repeated in subsequent years. Marketing expenses increased by $30,233 (20.27%) from $149,169 in 2008 to $179,402 in 2009 and again, some of these expenses will not recur again or certainly not to the same extent. The majority of these extra expenses in “Other Expenses” and in “Marketing” are in large part a measure of the additional costs incurred during the launch of the restaurant and promotion of it for the balance of 2009. Beverage I have to say that the View Café/Restaurant has gotten off to a very good start with 9,763 customers (i.e. members, guests and visitors) attending from late July when we opened to the end of December at an average of 408 per week. Total sales amounted to $324,957 (an average of $13,540 per week) with $95,793 of that total in Beverage Sales at an average of $3,991 per week. Additionally, we saw the sales in the Spike Bar increase from $614,671 Last Year to $708,783 in 2009 an increase of $94,113 (15.31%) with this increase occurring mainly in the second half of the year after the View was opened. We also introduced an up-dated Drinks Cart operation mid year and this also had a very positive effect on Spike Bar sales. The View Café/Restaurant was nominated in the Tamworth Chamber of Commerce and Industry awards as “Restaurant of the Year” even though we had been open for only 3 or 4 weeks when the judging was done. Total Beverage sales for the View and the Spike bars amounted to $804,578 compared to $614,670 in 2008, an increase of $189,906 or 30.94%. Our gross profit percentage margin on sales was almost the same as last year at 58.62% (58.84% in 2008) thus giving a gross profit of $471,627 compared to $361,676 Last Year, an increase of $109,951 or 30.4%. I am also pleased to report that in the first 9 weeks of 2010 the number of customers in the View Café/Restaurant has remained reasonably high at 3,459 (an average of 384 per week), total sales were $102,235 at an average of $11,359 per week with Beverage Sales of $24,948 at an average of $2,772 per week. Whilst these figures are not as good as we achieved in the second half of 2009, they are still strong especially when you take into account that February in Tamworth is very quiet after Country Music and that people spend much more in the lead up to Christmas than at any other time of year. The total Salary/Wages in the Spike Bar and the View for 2009 was $217,322 against $180,145 Last Year. As a percentage of Total Beverage Sales this is 27.01% compared to 29.31% Last Year. This is a very good result, and again, is in line with our 5 year business plan goals. Match Revenue
  11. 11. It was also very pleasing to see that Match revenue from members, guests and visitors playing golf increased by $29,481 (6.56%) from $449,184 in 2008 to $478,665 in 2009. A detailed analysis of the rounds of golf played for the year tells us that total 18 hole rounds increased by 700 and total 9 hole rounds decreased by 21 compared to 2008 for a reasonable net gain in golf activity for the year. The total 18 hole rounds plus 9 hole rounds played in 2009 amounted to 54,696 compared to 54,026 in 2008, an increase of 1.24%. Interestingly, the average number of rounds of golf played by each playing category member is (therefore) 37.6 rounds per year, which is well above the figure of 30 rounds per year that the AGU research says represents a (generally) happy playing membership. Membership Revenue The number of playing category members as at the 31st December 2009 was 1,458 (1,453 in 2008) and increase of 5, or 0.34%. Whilst this increase is small it does represent the 3rd year in a row that the Club has increased its numbers, which does go against the trend of what is happening to golf club memberships in NSW and indeed, Australia. Total Membership revenue for 2009 was $368,453 ($365,606 in 2008) an increase of $2,847 or 0.78%. Detail Year Year Year Year Year 1989 1995 2000 2008 2009 MEMBERSHIP Playing Members 1564 1504 1469 1453 1458 Social Members 107 210 279 504 965 Budget for 2010 We have set a reasonably optimistic budget in 2010 of $47,000 profit and anticipate improvements in all areas of the Club’s operation in terms of sales, staff cost percentages and other expense percentages. Additionally, we are hopeful of expanding our operations even further than we have already by going directly to some new market segments and also forging some more alliances with other like organizations. I really can’t elaborate more on these plans at this time as we are in a very competitive situation with the large number of hotels and clubs that Tamworth has. Conclusion In conclusion, I would like to thank the President and Directors for their direct assistance in a great many projects that we undertook during the year and for giving up their valuable time to participate in the many meetings that are part of running a democratic organization like a club. To Gerry Johnston our Treasurer, my thanks in particular for the huge number of hours that he generously gave me, whether to rake over budgets or consider new and existing projects or just to provide counsel. It is difficult for me to thank staff for their efforts in this report as I can’t name them all and to leave someone out who deserves mention would be unfair. Suffice to say that we are blessed with several absolute stars who do a magnificent job, and the vast majority of the others who do a very creditable job. I am presently preparing staff assessments for all of our employees so they will know soon enough which category that I believe they belong.
  12. 12. I have to say that I was sad to see Darren Williamson leave our employ, but he has moved to the Sunshine Coast where is wife has secured a very good position. I am sure that he will soon gain worthwhile employment in the area as there are many clubs and golf courses that would be looking for people of Darren’s ability. We wish him well in the future. Rick Watt Chief Executive Officer TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 LADY GOLF CONVENOR’S REPORT The past year has been an amazing time for Tamworth Golf Club, a very successful year and a year that has been ‘smooth sailing’ considering the challenges involved. The completion of ‘The View Café/Restaurant’ and also the many enhancements to the club house have given Tamworth golf Club a real presence in the Tamworth community. The role of Lady Convenor has been rewarding as we move with the growth of the club and this is possible because of the increased communication and cooperation the ladies enjoy with the management and board of the club. Thank you General Manager Rick, President Lou, Treasurer Gerry and the members of the board for your efforts in this regard. Our office staff play a vital role in achieving a well run and harmonious club and the ladies always appreciate the support they receive from Jenny, Belinda and Dianne. They are so obliging and have the happy knack of making us feel that nothing is too much trouble. Thank you to the bar staff for the hospitality we
  13. 13. enjoy. Thanks also to Scott, Tiffany and the boys in the Pro Shop for the help they so patiently give the ladies receive in every area of their golf. Thanks you lady golfers for your support during the year. I have appreciated this very much. Tamworth Golf Club has a very unique group of sportswomen who contribute great strength to the club in so many ways. The lady golfers were very proud to contribute $15,000 to the board for the improvements to the Fairways Room. This year has been wonderful for Tamworth Golf Club, both on our fantastic golf course and in all areas of club life. I have appreciated the opportunity to be involved during this important time. Jan Harris Lady Golf Convenor TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 GREENS REPORT 2009 Members: Lou Haslam (Chairman), Arthur Ruttley, Ken Mundy and Ashley Castles. We have been very fortunate during 2009 as the weather was very kind to us. Add to this our full allocation of water from our water licenses and we have seen the course in great shape for an extended period. All credit to our ground staff headed up by Steve Hirst and Craig Dimmock for making the most of the kinder seasonal conditions and water availability. A comparison of the last 2 years Grounds costs are as follows; Detail 2008 2009 Sal/Wages $285,207 $302,864 Other 138,590 125,644 $423,797 $428,508
  14. 14. The Sal/Wages increase from 2008 to 2009 was in part due to us having a full contingent of staff during the whole of 2009, as opposed to being without a part-time mechanic for several months in the middle of 2008 where Steve had to step in to cover until we found the right person. The cost of maintaining the course for 2009 of $429,000 is very good by comparison to other similar sized clubs and we should be proud of the staff’s efforts in this regard. We have also collected $71,862 in water levy from members, guests and social play in 2008 and another $77,655 in 2009. It is vital for this Club to solve its water problem if the course is to be consistently in its current condition. As you probably know we have 393 megalitres of water available to us from our various water licenses provided we get our full allocations each year. Obviously, we don’t get our full allocation when it gets dry and we got nil allocation from our surface water license and a minimal amount from our ground license during the recent draught. We need a draught proof supply of at least 250megalitres if we are to consider ourselves safe under any weather conditions. Our investment in new course equipment for the Course will continue in 2010 with the purchase of a new rough cutter at around $28,000. This machine will be purchased in September in time for Spring growth. I would like to extend my thanks to the sub-committee members and to the Course staff for a wonderful job in 2009. I wish all of you good golfing in 2010. Lou Haslam President & Chairman of the Grounds Sub-Committee TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 MATCH SUB-COMMITTEE REPORT Members: Ken Mundy Captain, Ashley Castles Vice Captain & Arthur Ruttley Firstly let me begin by saying how much of an honour it is to be Captain of the great Tamworth Golf Club, it is something that I will treasure for the rest of my life. I would like to pass on a big thank you to the following: Ashley Castles and Arthur Ruttley for carrying out all the tasks associated with Match, whilst I recovered from my operation, from all reports they did do an outstanding job, thanks guys. Belinda Brown from the front office, without her great assistance my job would be impossible, no task given represents any problem for Belinda.
  15. 15. To the marvellous team from the Pro-shop Scott Roworth, Tiffany, Brock, Browny and Darren, they carry out their roles in an impeccable manner and their contribution to Match is huge. Congratulations must go to Darren Burger for clinching his second consecutive club championship and of course Darren is now a trainee professional, so next year will see a new Champion. A special mention must be made of our most improved player, being one of our Juniors Zak Johns, who reduced his handicap from 24 to 12 in just twelve months. Congratulations also to all the other winners of various club events, there being too many here to mention in this report. I report also that our fields are continuing to be above average, Wednesdays are averaging around 180 and Saturday well in excess of 200. Sunday morning continues to grow averaging approximately 80 and the mixed on Sundays around 40, so very encouraging news. The Regional Championships were held this year at Gunnedah and unfortunately our Team of Darren Burger, Alan Hooper, Ben Lockwood and Graeme Nichols were unsuccessful, however I pass on to them my thanks for their efforts. I would like to pass on to all of our members my thanks to you all in the way the new internet booking system and inputting of scores through this system has been accepted, very rarely now do any of our members have any great difficulty in carrying out these tasks. A huge vote of thanks to our sponsors for 2009, Tamworth Golf Club I believe must have the most outstanding support in this area in NSW or indeed probably in Australia. When we compiled this years fixtures book I was greatly surprised to find that we only had approximately 5% of normal competition events not sponsored. Our major sponsors for 2009 were: GCR Golf Lyons Barnett& Kennedy Prime Television Brosie Martin Barnett North West Heating & Cooling + Carpetech Carpet Cleaning (Top Gun) Careys Freight Lines (Easter) Carpet Choice (Club Championships) Peel Valley Motors (Best Monthly score) Muller Family (Hams Day , unfortunately after 40 years they have called it a day, and will be replaced by the Barnes Family for that very popular event). Lavell-Ruttley Shield (Been running now for 38 Years) A huge vote of thanks goes to Kerry Sartori for organizing and running the Twilight Golf which runs on Tuesday’s and Thursday’s. The Sponsor here being Craftlatt. I believe this year’s numbers are pretty close to a record. To our Course Superintendent Steve Hirst and his team a huge thank you for presenting the golf course in magnificent condition, I must state that in my 31 years as a member I do not recall the course being in any better shape than it is right now. In closing, I would like to wish all members and lady members of our great club, a very satisfying golfing year in 2010, and may the best golfing round of everyone’s career be just around the corner.
  16. 16. Yours in Golf Ken Mundy Club Captain TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 TROPHY WINNERS AND WINNERS OF MAJOR EVENTS – 2009 EASTER OPEN TOURNAMENT SCOTT ROWORTH TROPHY: (Sponsored by Careys Freight Lines) A Grade: Ben Lockwood Tamworth Easter Cup: B Drewitt (Inverell) B Grade: Darren Hensby C Grade: Scott Flemming CLUB CHAMPIONSHIPS Open Champion: Darren Burger MONTHLY MEDAL WINNERS B Grade Champion: Rob English January: G Roberts C Grade Champion: Craig Berger February: D Hensby Junior Champion: Ryan English March: B Lockwood
  17. 17. April: K Rule Open Vets Champion: J. Pickrell May: R Wratten B Grade Vets Champion: P King June: D Tyack C Grade Vets Champion: P Heffernan July: J Pickrell August: M Varley Sept.: M Adams October: D Daly GOLD MEDAL WINNER Kevin Rule FOURSOMES: Open Champions: B Lockwood & D Burger B Grade Champions: W Mordue & W Maggan C Grade Champions: B Miller & T Targett Mixed Champions: D Burger & K King MATCH PLAY BROSIE, MARTIN, BARNETT Individual: Julian Pickrell SHIELD: Not Played Fourball: P. McIlwraith & P. Foster TAMWORTH OPEN FOURBALL: MOST IMPROVED PLAYER: (Sponsored by GCR Golf Co) Zak Johns Andrew Frost & Dennis Maunder TOP GUN SHOOTOUT: Michael King (Sponsored by North West Heating & Cooling and Beaurepaires Tyre Service) PRESIDENTS V’s CAPTAIN: Captain LAVELL-RUTTLEY SHIELD: Steve Lingwood PRIME WINTER CUP: K Smith PEEL VALLEY MOTORS (Best S’ford score during 2009) January: N Swain July: K Smith February: G Abra August: M Henry March: S Thompson Sept: R Kahler April: M Daniels October: A Hooper May: P Esdaile November: B Thorne June: I McKenzie December: D O’Dell EAGLES NEST: A Klassen A Hobbs C Adams A Hobbs D Sneddon G Way T Laws G McMillan HOLES-IN-ONE: H Smith R Delaney G Starr G McMillan
  18. 18. G O’Neile C Escott M Cullen B Rumble D Ashford WINNERS OF CLUB EVENTS EVENT TROPHY DONORS WINNERS Ind. Stableford Club D.McQueen I2 Man Team Event Club R.Aslin & N Abra Ind. Stableford Country Energy A.Wall Stroke Scott Roworth & Staff G. Roberts 2 Man Team Event Club A Rumble & M McKee Ind Stableford Absolute Carpet Cleaners T Brann Ind Stableford Club C Ryan 2 Man Team Event Club N Swain & S Thompson Ind Stableford Bankwest M Davidson Ind Stableford Club D Thompson Ind Stableford Club J Clery Ind Stableford National Bank J Ryan Ind Stableford Sullivan Pest M’ment C Hodgson 2 Man Team Event John Quinn Radiators S Moroney & T Hill Ind Stableford Priority Home Loans S Warden Stroke Superior Steel D Hensby 2 Man Team Event Club R Dunst & A Dunst Ind Stableford Dome Financial Group L Edwards Ind. Stableford Prime Television N Baker 4BBB Agg + Ind Brosie, Martin & Barnett C Redmayne & W May 2 Man Team Event Sauers Glass G Abra & G Nicholls Ind. Stableford Caltex Service Stat.Moonbi M Carey Ind.v Par Dungowan Olympic Group S Hopkins 2 Man Team Event Singapore Boys K Sartori & G Nicholls Mixed 4BBB Club G & P Nolan Ind Stableford Bankwest D Mann Stroke Medal B Pearson, C Halpin, B Lockwood D Sipple, K Smith 2 Man Team Event NWest Heat & Beaurepairs A O’Sullivan & J Quinn 4BBB Par Club B & J Hicks Ind. Stableford Bonnar, Smith & Hamilton R Barlow Ind Stableford Craftlatt G Nash 4 Man Ambrose Kings Smash Repairs A O’Sullivan & B Hilton J Quinn & A Murray Mixed 4BBB St’ford B & S Moss, P & G Nolan N & D Priestly Ind. Stableford Colour Copy Centre G Williams Ind Stableford Killen & Mayo T Gibson 2 Man Team Event Maurie Graham I Barnes & D Purkiss 4BBB Stableford Club J & E Coupland Ind. Stableford Longyard Hotel A Hobbs 4BBB Stableford Matt Halpin Plumbing S Krug & M Peters
  19. 19. 2 Man Team Event North Tamworth Rotary D Keech & T Moir Mixed 4BBB S/Ford North Tamworth Rotary G & L.Hibbard Ind. Stableford Bank of Queensland B Begley Stroke Medal Sauer’s Glass K Rule 2 Man Team Event Club B Johns & Z Johns Mixed 4BBB S/Ford Geoff & Lyn Hibbard P & C Bainbridge Ind. Stableford Ardina Electrical L Haslam Ind Stableford Careys Freight Lines-Easter Ladies - J Preston Men - Z Johns Ind. Stableford Careys Freight Lines- Easter C Ryan 4BBB v Par Careys Freight Lines- Easter P Greenwood & P Hanly Vardon Event Careys Freight Lines- Easter B Drewitt Ind Stableford Commonwealth Bank S McPherson Ind Stableford R.Loeve, B.Cox, A Frost B Rae T.Gibson, B.Clare,B.Hansen 2 Man Team Event Brian Haworth G Abra & A Simpson 2 Man Team Event M.Morris & T.Azzopardi D & A Ruttley Ind. Stableford Tudor Hotel M Whale 4BBB. Stableford T.W Signs K O’Brien & P Thompson 2 Man Team Event Calala Inn S Moroney & W Maggan Mixed 4BBB S’ford Club J & M Kelly Ind. Stableford Johnston & Sartori M Daniels Stroke Aldriges Crane Hire R Wratten 2 Man Team Event Club C Key & P Key 4BBB Stableford Club S & G Button Ind Stableford Carpet Choice D Burger Stroke Medal Carpet Choice A Klassen 4BBB Par Club M Kempton & N Miller 2ManTeam event Club T Whiley & S Allan Ind Stableford Auto Transmission Ser. S Wieland Ind Stableford Duttons Electrical D Ashford 2Man Team Event Club A. Allston & J Aslin Ind Stableford Bankwest B Stehr 4 Man Ambrose Wayne Reading J Siebels, P Sayer, B Pyne, N Harvey 2 Man Team Event Tamworth Pirates J Steir & L Chatfield 3 Stick Event P & C Bainbridge A & D Ruttley Ind Stableford Caltex Service Stat Moonbi L Rae Ind S/Ford A.Cracknell, T.McCann G Turner M.Russell, A . Kassis 2 Man Team Event Club S Ford & G Gardner Ind + 2Person Team Rabbit Electrical K & A Roberts Ind Stableford G J Gardner L Andrews Stroke Medal Brian Cox Business Equip D Tyack 2 Man Team Event Club C Halpin & N Baker 4BBB Par Club S Mingay & K Flood
  20. 20. Ind Stableford T W Signs A Ruttley Ind Stableford Hancocks J Jeffery 2 Man Team Event Prime S Kennedy & S Flemming 4BBB S/Ford Club S Button & A Ruttley Ind Stableford Health Care At Home B Thomas Individual Stableford Health Care At Home D Johnston 4Man Multi Bob Newlan A O’Sullivan, J Quinn C Eunson, W Chillingworth 4BBB Stroke K & A Roberts D & K McIlveen Ind Stableford Trinder Scott & Davis T Fisher 4Ball Agg G Whackett, K O’Brien, S Mitchell & J Crowe P Smitham , M Turner 2 Man Team Event Nick Taggart D Purkiss & G Hobbs 4BBB S/Ford A& D Ruttley P & D Martin Individual S/Ford Doug Ashford L Anthoney Individual Stroke Roland Loeve J Pickerell 3 Man Ambrose The Pub Group E Burraston, S Ryman,M McIlveen 4BBB Agg + Ind D & P Martin D & A Ruttley Individual Stableford Club D Easterman 4BBB S/Ford Futcher, Hinwood,Buckland W Pittman & J Smith & Cracknell 2 Man Ambrose Rabbits Day B Wright & B Collier 4BBB Stableford Members v Ladies D Ruttley & J Clery Individual Stableford Club K Jones Individual Stableford Country Energy K Smith 2 ManTeam Event Club M Halpin & C Halpin 4BBB S/Ford Club P & P Heffernan Individual Stableford Dynamic Fire G Steele Individual v Par Club C Redmayne 2 Man Team Event Club R Ingram & G O’Dell Mixed 4BBB Stroke Prime Television A & D.Ruttley Individual Stableford Garvin & Cousens A Nicholls Individual Stroke B Hansen R Wratten Individual Stableford Caltex Service Stat Moonbi I Trickett Ind v Par Terry Howe Memorial A Hobbs 4 Man Ambrose Holden Scramble Kensells G Burns, A Hooper W Pittman & R Burns Individual Stableford Rick Watt TGC CEO M Henry Individual Stableford Trinder Scott & Davis D Hinwood 4 Man Ambrose M. Shearer, M. Sweeney, L Edwards, G Pennell D. Russ & P. Russ B Lavell & A Beer Individual Stableford Club G & P Nolan Individual Stableford Bendemeer Hotel M King 4BBB Aggregate Rosco Group A Jones & A Turner Individual Stableford Club D Petty 4BBB Stableford Club G & B Boyd
  21. 21. Individual Stableford Johnston & Sartori Fin. Plan R Gill Individual v Par Tam Regional Council J Campbell Individual Stableford Lavell Ruttley Shield S Lingwood 4BBB Stableford Hudson Cleaning Service M & J Clery Individual Stableford Dome Financial Group J Robertson Individual Stroke Past Captains M Varley 2 Man Team Event Past Captains B Johns & Z Johns Mixed 4BBB v Par Past Captains H & D Smith Individual Stableford Tudor Hotel G Pennell 4BBB Aggregate Terry Hanly Memorial D Martin & D Russell 2 Man Team Event Aeria Family T Hill & O Whale 4BBB Stableford D & K McIlveen P & D Martin Individual Stableford Bank of Queensland D Macqueen Individual v Par Phil Heffernan Auctioneers J Newlan 2 Man Team Event T W Signs S Ford & T Shorten 4BBB Par Club T & M Kempton Individual Stableford TGC D Frame 2 Man Team Event Craig & Grant Long S Krug & B O’Keefe 2 Man Team Event Brian Hilton R Kahler & G Urqhart 4BBB Par Event Maree & Trevor Kempton A Roberts & P Nolan Individual Stableford P. Anderson T Jones Individual Stroke B Begley, J Campbel M Adams T Clarke, R Wratten 2 Man Team Event Tamworth City Toyota S Rasmussen & M Thomas 4BBB Stableford Club J & B Hicks Individual Stableford TGC Vets A Nicholls Individual v Par Harry Wicks D Martin Individual Stableford Tamworth Auto Trans. J Hislop Individual Stableford Raine & Horne Real Estate P York Mixed 4BBB v Par Club M Gurd & M Gillies 2 Man Ambrose Tudor Hotel G Tumeth & D Tumeth Individual Stableford Noel Bennett J Begley Individual Stableford Ashley Castles R Loeve 4BBB v Par GCR Golf A Frost & D Maunder Individual. S’ford Prime Television A Hooper Individual. S’ford L. Carney, M. King, & D. Taylor D Daly 4BBB Stableford Bursons Auto Parts J Siebels & C Wilson Mixed 4BBB S/Ford Sauers Glass C & S Pyne Individual Stableford Malvern Mathews Smith P McIlwraith Ind v Par Club M Barratt 2 Man Team Event Brian Cox Business Equip G O’Toole & A Horton 4BBB Stableford Northern Inland Cr Union T Germon & R Hillier Individual Stableford Brosie,Martin,Barnett J Clery 4BBB Stroke All Settlers Motor Inn S Krug & B O’Keefe 2 Man Team Event Barnco Automotive H Tan & C Peng Mixed 4BBB S’ford Hicks Plumbing R Terone & M Carey
  22. 22. Individual Stableford Bankwest R Smith Individual Stableford Tam. Chainsaw & Mower B Thorne 2 Man Team Event Larry Marker Constructions S Rasmussen & S Mulligan 2 Person Ambrose Mick & Kylie King T Azzopardi & G Nicholls Individual Stableford Malvern,Matthews,Smith A Murray 4BBB v Par Lyons Barnett Kennedy D Burger & L Haslam Individual S’ford Priority Home Loans J Ryman 4BBB v Par South Tamworth Butchery J L Gray & K Bals American 4B S’ford Muller Family (Hams Day) D Evans, K Fittler N Williams, B Miller Mixed 4BBB v Par Club (Hams Day) C Pyne & T Targett Individual Stableford J. Ryman, A. Osborne, R English C. McInnes & L. Smith 2 Man Team Event D Thompson, S Thompson B May M Barnett, D Russ 2 Man Team Event Club P Hurn & K Reading Individual Stableford Caltex Service Stat Moonbi J Hislop 2 Man Ambrose Best of the Boys B Baldwin & B Hansen 2 Man Team event. Club S Mulligan & S Rasmussen Individual Stableford Donut King B Hall Individual Stableford Club S Bradbery 2 Man Team Event Club J Bowden & A Bowden Individual Stableford Club D Turner TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 DIRECTORS' REPORT The Directors have pleasure in presenting their Directors Report together with the Financial Report of Tamworth Golf Club Limited for the year ended 31st December 2009:- Directors The Directors of the company in office at the date of this report were as follows: Name Qualification Board Special
  23. 23. Experience Responsibilities HASLAM, Lou Company Director 3 Year President Greens, Building & Ex-Officio all other Sub-Committees RUTTLEY, Arthur Retired 11 Years Vice President Building & Match, Greens JOHNSTON, Gerry Company Director 6 Years Treasurer Finance & Ex-Officio all other Sub-Committees MUNDY, Ken Accounts Manager 10 Years Captain Match, Greens CASTLES, Ashley Company Director 2 Years Vice Captain Match, Greens HARRIS, Jan Retired Hotelier 3 Year Ladies Golf Convenor House & Marketing ARMSTRONG Gary Teacher 12 Years Committee House & Marketing HICKS Bill Plumber 4 Year Committee Building ESCOTT, Col Retired Teacher 1 Year Committee Website TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 DIRECTORS' REPORT Continued DIRECTORS MEETINGS The number of Directors' meetings held (including special meetings of Directors of the Company) and the number of meetings attended by each director of the Company during the financial year 2009 are: Number of Number of Meetings Meetings Held Attended
  24. 24. Mr C Morris * 5 5 (Until May 2009) Mr K Sartori * 5 4 (Until May 2009) Mr M Whale * 5 5 (Until May 2009) Mr K Mundy 13 12 Mr G Armstrong 13 12 Mr W Hicks 13 13 Mr A Ruttley 13 13 Mr A Castles 13 11 Mr. G Johnston 13 12 Mr L Haslam 13 12 Mrs J Harris 13 10 Mr G Roberts * 5 4 (Until May 2009) Mr C. Escott * 8 8 (Since May 2009 For the period 1/1/09 to 31/12/09 * Reflects the number of meetings held during the time the Director held office. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 DIRECTORS' REPORT Continued Principal Activities The principal activities of the company during the financial year have been to provide golf club facilities for members and their guests and to promote the game of golf. There were no significant changes in the nature of those activities during the financial year. Number of Members as at: 31/12/2009 31/12/2008 Playing - Men 998 1006 Playing - Ladies 45 31 Associate - Men 62 60 Associate - Ladies 246 265
  25. 25. Student 8 11 Junior - Men 26 26 Junior - Ladies 1 2 Social - Men 580 363 Social - Ladies 385 141 Life - Men 2 2 Life - Ladies 1 1 Professional 9 9 Sub-Junior 56 40 Corporate 4 Total 2423 1957 Net Profit The Profit/Loss from ordinary activities of the company for the financial year was a loss of $42,076 (2008 profit of $18,826) after income tax expense of $nil. Transfers to Reserves Material transfer to and from reserves or provisions were as follows: 31/12/09 31/12/08 To Provision for Depreciation $164,433 $131,555 To Long Service Leave Provision (Net) ($6,702) ($1,640) To Annual Leave Provision (Net) ($13,742) $22,993 Dividends No dividends were paid to members as the company is precluded under the Articles of Association from paying dividends. Review of Club Operations Revenue derived from operations of the club for the year totalled $2,198,210 (2008 $2,004,364) and expenditure amounted to $2,240,286 (2008 $1,985,538). Depreciation for 2009 amounted to $164,433 (2008 $131,555) and capital expenditure for the year amounted to $1,414,431 (2008 $339,383). The figures relating to Revenue & Expenditure do not take into consideration the movement in provisions, profit/loss on sale of assets or movements in stock value. All figures stated in the review of club operations are net of GST and AIFRS adjustments. Derivatives & Other Financial Instruments The company has a strict credit policy for all customers trading on credit terms, and only deals with reputable banks. Financing facilities and operating cash flows are managed to ensure the company is not exposed to adverse liquidity risks. Environmental Regulations The Company’s operations are subject to various environmental regulations under both Commonwealth and State legislation. The Directors are not aware of any significant breaches during the year covered by this report. Options No options over issued shares or interests in the company were granted during or since the end of the financial year and there were no options outstanding at the date of this report. State of Affairs In the opinion of the Directors there were no significant changes in the State of Affairs of the Company that occurred during the financial year under review not otherwise disclosed in this report on the financial statement. Events Subsequent to Balance Date
  26. 26. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of these operations, or the state of affairs of the company in future financial years. Likely Developments In the opinion of the Directors it would prejudice the interests of the company to provide information additional to that reported in this Directors' Report relating to developments in the operations of the company and the expected results of those operations in the financial years subsequent to 31 December, 2009. Directors' Benefits Since the end of the previous financial year no Director of the Company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by Directors shown in the accounts) because of a contract made by the Company or a related corporation with a Director or with a firm of which a Director is a member, or with a company in which the Director has a substantial interest. Indemnification & Insurance of Director’s & Officers Insurance premiums have been provided for and paid by the Company during the year for current 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 reasons of any omissions or acts (other than dishonesty) by them, whilst acting in their individual or collective capacity as directors or officers of the company. The premium paid for this cover amounts to $2,475.00. Auditor’s Independence Declaration (Section 307C Corporations Act 2001) The lead auditor’s independence declaration for the year ended 31st December 2009 has been received and has been included in this report. Signed in accordance with a resolution of the Board of Directors: Dated at TAMWORTH on 30th March 2010 President/Director - Lou Haslam Treasurer – Gerry Johnston TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 IMPORTANT INFORMATION FOR CLUB MEMBERS The Reporting period for Tamworth Golf Club Limited is 31/12/2009 1. Important Notes 1.1 The Registered Clubs Act 1976 defines a TOP EXECUTIVE as being one of the five highest paid employees of the club at each separate premises of the club. 1.2 Club members may inspect the original of any disclosure or declaration made under Section 41C, 41D, 41E or 41F by making a written application to the Secretary. 2. Disclosure of Interests of Directors in Contracts with the Club - Section 41C 2.1 The Registered Clubs Act 1976 requires DIRECTORS who have a material personal interest in matters that relate to the affairs of the club to declare the interest at a board meeting AND the club to display the declaration on the club’s notice board.
  27. 27. 2.2 A contract is any commercial arrangement whether written or not. 2.3 In the reporting period there was one (1) occasion when a DIRECTOR reported a material personal interest in a matter relating to the club’s affairs: 2.3.1 DIRECTOR CONTRACT DESCRIPTION/NATURE W. Hicks Plumber to the Tamworth Golf Club 3. Financial Interests in Hotels - Section 41D 3.1 In the reporting period there were no occasions when DIRECTORS reported a financial interest in a hotel in NSW. 3.2 In the reporting period there were no occasions when TOP EXECUTIVES reported a financial interest in a hotel in NSW. 4. Gifts to Directors and Staff - Section 41E and Section 41F 4.1 An affiliated body of the club includes subsidiary clubs, and any body which the club made a grant to within the previous 12 months. 4.2 A gift includes money, hospitality, or discounts. 4.3 A gift valued at more than $500 must be disclosed; gifts from CONTRACTORS must be disclosed if they total more than $500 from an individual contractor in the reporting period. 4.4 Directors 4.4.1 In the reporting period there were no occasions when DIRECTORS of the club reported receiving gifts from AFFILIATED BODIES. 4.4.2 In the reporting period there were no occasions when DIRECTORS of the club reported receiving gifts from CONTRACTORS. 4.5 Top Executives and Employees 4.5.1 In the reporting period there were no occasions when TOP EXECUTIVES of the club reported receiving gifts from AFFILIATED BODIES. 4.5.2 In the reporting period there were no occasions when EMPLOYEES of the club reported receiving gifts from CONTRACTORS. 4.6 Value of Gifts 4.6.1 The total value of all gifts that DIRECTORS and TOP EXECUTIVES received from AFFILIATED BODIES in the reporting period is $0.00. 4.6.2 The total value of all gifts that DIRECTORS and EMPLOYEES received from CONTRACTORS in the reporting period is $0.00. 5. Top Executives - S.41H (1)(b) 5.1 The number of club TOP EXECUTIVES whose total remuneration for the reporting period falls within each successive $10,000 band commencing at $100,000: 5.2 There were no TOP EXECUTIVES whose total remuneration for the reporting period exceeded $100,000. 6. Overseas Travel - S.41H (1)(c) 6.1 In the reporting period the club incurred the following costs for the overseas travel of
  28. 28. DIRECTORS and EMPLOYEES: 6.2 In the reporting period the club incurred no costs for the overseas travel of DIRECTORS and/or EMPLOYEES. 7. Loans to Staff - S.41H (1)(d) 7.1 The Registered clubs Act 1976 requires the club to report loans to EMPLOYEES of $1,000 or more. 7.2 In the reporting period, the club made no loans to EMPLOYEES. 8. Contracts approved by Board - S.41H (1)(e) 8.1 During the reporting period the Board approved no contracts relating to the remuneration of the club’s TOP EXECUTIVES. 8.2 The Registered Clubs Act 1976 defines a Controlled Contract as being a club contract: 8.2.1 in which a DIRECTOR or TOP EXECUTIVE has a pecuniary interest, or 8.2.2 for provision of professional advice relating to the following, a.) significant change to management structure or governance of the club; b.) significant change to the financial management of the club; c.) disposal of land; and d.) the amalgamation of the club. 8.3 During the reporting period no controlled contracts were approved by the Board and forwarded to the Director of Liquor and Gaming, of which: 8.3.1 No such contracts related to contracts in which a DIRECTOR or TOP EXECUTIVE has a pecuniary interest. 8.3.2 No such contracts related to the provision of professional advice. These contracts fall into the following advice categories: 8.3.3 Significant change to the management structure or governance of the club. 8.3.4 Significant changes to the financial management of the club. 8.3.5 Disposal of club land. 8.3.6 Amalgamation of the club. 9. Employees related to Directors and Top Executives - S.41H (1)(f) 9.1 A CLOSE RELATIVE is defined in section 41B of the Registered Clubs Act 1976 and includes the immediate family. 9.2 In the reporting period, the club did not employ any persons who was a close relative of a DIRECTOR or TOP EXECUTIVE of the club. 10. Payments to Consultants - S.41H (1)(g) and (h) 10.1 During the reporting period there was one instance where the club engaged a consultant. 10.2 The total costs paid by the club to a consultant in the reporting period was $1,020.00. 10.3 Which included the following instances when consultants were paid $30,000 or more: Nil consultants. 11. Details of Settlements paid by the Club - S.41H (1)(i)
  29. 29. 11.1 In the reporting period the club made no legal settlements with either a director or club employee. Being: 11.1.1 Nil with a director of the club. 11.1.2 Nil with a club employee. 11.2 The total value of all legal settlements was $0.00. 11.3 The total legal costs paid by the club for such settlements was $0.00. 12. Legal Fees paid by the Club - S.41H (1)(j) 12.1 In the reporting period, there were no instances when the club paid legal fees for DIRECTORS and EMPLOYEES. This included: 12.1.1 Nil instances for DIRECTORS and 12.1.2 Nil instances for EMPLOYEES. 12.2 In the reporting period the club paid a total of $0.00 being for legal fees paid for DIRECTORS and EMPLOYEES. 13. Gaming Machine Profit - S.41H (1)(k) 13.1 Gaming machine profit and the gaming machine tax period are defined in the Gaming Machine Tax Act 2001. 13.2 In the most recent gaming machine tax period (12 months to 31st August 08) the total profit from gaming machines was $293,307. 14. Amount paid to Community Development - S.41H (1)(l) 14.1 Clubs earning in excess of $1,000,000 p.a. in gaming machine profit can apply part of such profit to community development and support. 14.2.1 In the reporting period the Club applied $0.00 to community development and support under the CDSE scheme. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 I declare that, to the best of my knowledge and belief, during the year ended 31 December 2009 there have been: a. no contraventions of the auditor’s independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
  30. 30. b. no contraventions of any applicable code of professional conduct in relation to the audit. MALVERN MATHEWS SMITH William A. Malvern (Partner) Registered Company Auditor 234 Marius Street TAMWORTH 2340 1st February 2010 TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF THE TAMWORTH GOLF CLUB LIMITED Report on the financial report We have audited the accompanying financial report, being a general purpose financial report, of Tamworth Golf Club Limited (the company), which comprises the balance Sheet as at 31 st December 2009, and the income statement, statement of change in equity and cash flow statement for the year then ended 31st December 2009, a summary of significant accounting policies, other explanatory notes and the Director’s Declaration. Director’s responsibility for the financial report
  31. 31. The Directors of the company are responsible for the preparation and fair presentation of the financial report and have determined that the accounting policies described in Note 1 to the financial statements, which form part of the financial report, are appropriate to meet the requirements of the Corporations Act 2001 and the Constitution, and are appropriate to meet the needs of the members. The Directors’ responsibility also includes establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor’s responsibility Our responsibility is to express an opinion on the financial report based on our audit. No opinion as to whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurances 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 auditor’s judgement, 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 auditor considers internal control relevant to the company’s preparation and fair presentation of the financial report 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 company’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. The financial report has been prepared for distribution to members for the purpose of fulfilling the Directors’ financial reporting under the Corporations Act 2001 and the Constitution. We disclaim any assumption of responsibility for any reliance on this report or on the financial report to which it relates to any person other than the members, or for any purpose other than that for which it is prepared. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence 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, provided to the Directors of the Tamworth Golf Club Limited on the 1st February 2010 would be in the same terms if provided to the Directors as at the date of this auditors report. Auditor’s opinion In our opinion the financial report of the Tamworth Golf Club Limited is in accordance with the Corporations Act 2001, including: a. giving a true and fair view of the company’s financial position as at 31 st December 2009 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1; and b. complying with Australian Accounting Standards to the extent described in Note 1 and complying with the Corporations Regulations 2001.
  32. 32. MALVERN MATHEWS SMITH William A. Malvern (Partner) Registered Company Auditor (# 3420) 234 Marius Street, TAMWORTH 2340 Dated 30th Day of March, 2010 TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 INCOME STATEMENT YEAR ENDED 31 DECEMBER 2009 Detail Note 2009 2008 REVENUE Club House & Course 1207,929 1,021,563 Members 847,118 814,790 Other Revenue 143,163 168,011 TOTAL SALES 2,198,210 2,004,364 EXPENDITURE
  33. 33. Cost of Goods Sold 332,949 252,994 Employee Expenses 891,741 877,575 Depreciation 1 (a) 164,433 131,555 Finance Costs 69,836 16,056 Administration Expenses 781,327 707,358 Impairment losses 0 0 TOTAL EXPENSES 2,240,286 1,985,538 PROFIT FROM ORDINARY ACTIVITIES (42,076) 18,826 INCOME TAX EXPENSE 1 (g) 0 0 NET PROFIT FROM ORDINARY ACTIVITIES 14A (42,076) 18,826 The accompanying notes form part of these accounts. These financial statements have been subject to audit and should be read in conjunction with the attached Audit Report. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 BALANCE SHEET AS AT 31ST DECEMBER 2009 Detail Note 2009 2008 CURRENT ASSETS:- Cash and Cash Equivalents 3 151,589 99,015 Trade & Other Receivables 4 96,830 59,800 Inventories 5 32,796 25,793 Other 6 110,921 29,250 TOTAL CURRENT ASSETS 392,136 213,858
  34. 34. NON-CURRENT ASSETS:- Property Plant & Equipment 7A 5,982,359 4,732,448 Other 7B 145,932 145,932 TOTAL NON-CURRENT ASSETS 6,128,291 4,878,380 TOTAL ASSETS 6,520,427 5,092,238 CURRENT LIABILITIES:- Trade & Other Payables 8A 470,424 357,963 Financial Liabilities 8B 1,589,636 171,857 Short Term Provisions 9 100,128 120,571 TOTAL CURRENT LIABILITIES 2,160,188 650,391 NON-CURRENT LIABILITIES:- Financial Liabilities 8C 39,903 79,435 TOTAL NON-CURRENT LIABILITIES 39,903 79,435 TOTAL LIABILITIES 2,200,091 729,826 NET ASSETS:- 4,320,336 4,362,412 ACCUMMULATED FUNDS:- Retained Earnings 14A 1,789,501 1,831,577 Asset Revaluation Reserve 14B 2,530,835 2,530,835 TOTAL ACCUMMULATED FUNDS 4,320,336 4,362,412 The accompanying notes form part of these accounts. These financial statements have been subject to audit and should be read in conjunction with the attached Audit Report. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2009 Detail Note 2009 2008 Cash Flows from Operating Activities Receipts from Clubhouse/Members 2,218,204 1,994,641 Payment to Suppliers & Employees -2,057,181 -1,788,778 161,023 205,863 Interest Received 392 2,194 Interest Paid -69,835 -16,056
  35. 35. Net Cash Inflow from Operating Activities 91,580 192,001 Cash Flows from Investing Activities Payment for Property, Plant & Equipment -1,417,243 -339,358 Proceeds from Sale of Property, Plant & Equipment 15,000 Net Cash Inflow (Outflow) from Investing Activities -1,417,243 -324,358 Cash Flows from Financial Activities Proceeds from borrowings 1,417,673 214,830 Repayment of Borrowings -39,436 -101,515 Net Cash Outflow from Financial Activities 1,378,237 113,315 Net Increase (Decrease) in Cash Held 52,574 -19,042 Cash at the beginning of the Financial Year 99,015 118,057 Net Cash (Borrowings) at the end of the Financial Year 151,589 99,015 Cash Comprises: Current Assets: Cash on Hand 33,000 31,000 Cash at Bank 118,589 68,015 151,589 99,015 The accompanying notes form part of these accounts. These financial statements have been subject to audit and should be read in conjunction with the attached Audit Report
  36. 36. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 STATEMENT OF CHANGE IN EQUITY FOR THE YEAR ENDED 31ST DECEMBER, 2009 Retained Asset Total Earnings Revaluation Reserve Balance as at 1st January 2009 $1,831,577 $2,530,835 $4,362,412 Loss for the Year (42,076) (42,076) $1,789,501 $2,530,835 $4,320,336 Revaluation Increment/Decrement Balance as at 31st Dec. 2008 $1,789,501 $2,530,835 $4,320,336 The accompanying notes form part of these accounts. These financial statements have been subject to audit and should be read in conjunction with the attached Audit Report
  37. 37. TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2009 Note 1 STATEMENT OF ACCOUNTING POLICIES The financial report covers Tamworth Golf Club as an individual entity. Tamworth Golf Club is a company limited by guarantee, and is domiciled in Australia. The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards. The Directors have determined that the company is a reporting entity. The financial report has been prepared in accordance with 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 accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. a) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revaluation amount of the asset. Plant and Equipment Plant and Equipment are measured on the cost basis. 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 asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. These notes are to be read in conjunction with the accompanying Audit Report.
  38. 38. Increases in the carrying amount arising on revaluation of land and buildings are credited to the revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the re-valued carrying amount of the asset charged to the income statement and depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained earnings. Depreciation The depreciable amount of all fixed assets, excluding freehold land, is depreciated on a straight-line basis over their useful lives to the company commencing from the time the assets is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate (Diminishing Value) Course Watering 5-20% Buildings 2% Course Improvements 5% Plant & Equipment 15-20% Poker Machines 12.5% Air-conditioning 10% The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by deducting sale proceeds from the carrying amount. These gains or losses are included in the income statement. When re-valued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. b) Financial Assets Recognition Financial assets are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. Derivatives are also categorised as held for trading unless they are designated as hedges. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise. 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. These notes are to be read in conjunction with the accompanying Audit Report.
  39. 39. Held to maturity Investments These investments have fixed maturities, and it is the group’s intention to hold these investments to maturity. Any held-to-maturity investments held by the group are stated at amortised cost using the effective interest rate method. Inventories Inventories consisting of liquor, food and sundry items and are valued at Fair Value. c) Financial Liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Derivative Instruments Derivative instruments are measured at fair value. Gains and losses arising from changes in fair value are taken to the income statement unless they are designated as hedges. 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 entity 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. d) Impairment of Assets At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and the value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expenses to the income statement. Impairment testing is performed annually for non-current assets and intangible assets with indefinite lives. Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. e) Employee Benefits Provision is made for the company’s liability for employee benefits arising from service rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. These notes are to be read in conjunction with the accompanying Audit Report.
  40. 40. f) 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. g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short- term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. h) Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Poker Machine income and commissions and member subscriptions are recognised in the period to which they are set. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST). Membership Fees are recognised in the financial year to which they relate. i) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of these assets, until such time as the assets are substantially ready for their intended use of sale. All other borrowing costs written off are recognised in expenses in the period to which they relate. j) Taxation No provision for taxation has been made in the accounts since the company is currently exempt from incurring any income tax liability in terms of Section 50.45 of the Income Tax Assessment Act, 1997. k) Superannuation Contributions are made by the company to an award based superannuation fund for all employees and company retirement fund for the employees who qualify for acceptance. All contributions are charged as expenses when incurred. The company has no legal obligations to cover any shortfall in the Fund’s obligations to provide benefits to employees on retirement. l) Repairs & Maintenance Maintenance, repair costs and minor capital replacement/renewals are charged as expenses as incurred. These notes are to be read in conjunction with the accompanying Audit Report.
  41. 41. m) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a net basis. n) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. o) Critical accounting estimates and judgements. The directors evaluation estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the company. Key Judgements – 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. p) Going Concern The Company financial statements have been prepared on the going concern basis. These notes are to be read in conjunction with the accompanying Audit Report.

×