ABN 0 001 041 2 - Amazon S3s3-ap-southeast-2.amazonaws.com/wh1.thewebconsole... · ABN 0 001 041 2 2 NOTICE OF ANNUAL GENERAL MEETING & RESOLUTIONS Notice is hereby given of the Annual

GRAFTON DISTRICT SERVICES CLUB LIMITED ABN 90 001 041 327

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NOTICE OF ANNUAL GENERAL MEETING & RESOLUTIONS

Notice is hereby given of the Annual General Meeting of the Grafton District Services Club Limited to be held on Monday 26th October, 2015.

Commencing at 7.00pm at the premises of the club, Mary St, Grafton, NSW.

ADMITTANCE TO THE ANNUAL MEETING WILL ONLY BE ON PRESENTATION OF CURRENT MEMBERSHIP CARD

All business and Notices of Motion to be dealt with at the Annual General Meeting shall be handed to the CEO/Secretary at least 14 days prior to the date of such meeting.

AGENDA1. Apologies

2. To confirm the Minutes of the previous Annual General Meeting of the Grafton District Services Club Limited held 27th October, 2014.

3. To receive and consider the report of the board.

4. To receive and consider the Balance Sheet and Profit and Loss Statement and Report of the Auditors.

5. Ordinary Resolutions regarding Director’s Benefits.

6. Special Resolutions.

7. To deal with any other business of which notice has been given.

8. Recommendations to the Incoming Board.

Notes:For the resolutions to be passed as special resolutions, they must receive votes in their favour from not less than 75% of those members present and voting at the meeting.

G.E WILLIAMS CEO/SECRETARY

OFFICE BEARERSPresident ................................................................................................ W. TOZER

Vice Presidents ......................................................... T. COLEMAN & I. SPEECHLEY

Directors ......................................... J. GILLETT, D. PEARCE, A. HALL, P. HARVISON

Chief Executive Officer ...................................................................G. E. WILLIAMS

Sub Manager Operations ......................................................................... T.SMYTH

Finance Manager ...............................................................................MS. D. PAGE

Gaming Manager ......................................................................................M. SEAR

Restaurant/ Bistro Manager...............................................MRS. S. J. DONNOLLEY

Duty Managers ................................. S. ESSEX, S. DONNOLLEY, MRS. K. NEWMAN

Functions/ Catering Manager .......................................................MRS. E. BROWN

Butcher Shop Manager.................................................................P. BROTHERSON

Auditors ........................................................ CROWE HOWARTH CENTRAL NORTH

Solicitors ....................................................... POLLACK, GREENING & HAMPSHIRE


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ORDINARY RESOLUTIONS DIRECTOR’S BENEFITSThat pursuant to the Registered Clubs Act:a) The members hereby approve reasonable expenditure by the Club until the next annual General Meeting of the club for the following expenses:

i. Reasonable expenses occurred by the Directors in travelling by their private or public transport to and from Directors’ Meetings, or other duties associated with Club business, either within the Club or elsewhere, as approved by the Board.

ii. Reasonable cost of meal and beverages for each Director associated with the Directors’ attendance at Board or Community meetings or other Club duties on the date of such meeting or duty.

iii. Reasonable expenses incurred by Directors within the Club or elsewhere in relation to such duties, including entertainment of guests of the Club and promotional activities as approved by the board.

iv. Reasonable expenditure on food and beverages for Directors and Partners, where appropriate, to functions to represent the club on official business and such expenditure is approved at the next board meeting.

v. Reasonable expenses for attendance of Directors and Partners, where appropriate, at functions to represent the Club as approved by the Board.vi. Reasonable expenses on a pre- Christmas dinner for Directors and Partners. vii. Reasonable expenses on Club blazer, shirt, tie, slacks and associated items for each Director.viii. That the Club Boardroom be available for Directors and that all beverages and refreshments in the

boardroom be at the expense of the Club when dealing with Club business.ix. The reasonable expenses incurred in relation to providing a wake for departed members in circumstances

which the Board, in its discretion, determine are special and significant to the Club.x. That each Director be allotted to a specific parking place in the car park.

b) The members acknowledge that the benefits in paragraph (a) above are not available to members generally, but only for those who are Directors of the Club and those persons directly involved in the above activities.

ORDINARY RESOLUTIONS – SECOND RESOLUTIONThat pursuant to the Registered Clubs Act:a) The members hereby approve reasonable expenditure by the Club for the professional development and

education of Directors until the next Annual General Meeting.i. The reasonable cost of Directors and Partners attending the Club NSW Annual Meeting and Conference, to

represent the club.ii. The reasonable cost of Directors attending meetings of other Associations.iii. The reasonable cost of Directors attending other Registered Clubs for the purpose of viewing and

assessing facilities and methods of operation, as approved by the board.iv. The reasonable cost of Directors attending seminars, lectures, trade displays, organised study tours,

fact-finding tours and other similar events, in Australia or overseas as may be determined by the Board from time to time for the benefit of the future prosperity of the Club and its members.

b) The members acknowledge that the benefits in paragraph (a) above are not available to members generally, but only for those who are Directors of the Club and those persons directly involved in the above activities.

Notes to Members Regarding the Ordinary ResolutionsTo be passed, each Ordinary Resolution must receive votes in its favour from a majority of the eligible members who vote in person at the meeting. Proxy voting is not permitted under the Registered Clubs Act.


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NOTICE is hereby given that at the upcoming Annual General Meeting of GRAFTON DISTRICT SERVICES CLUB LIMITED which is to be held on Monday the 26th October, 2015 commencing at 7pm the members will be asked to consider and if thought fit pass the following Special Resolution:

SPECIAL RESOLUTIONThat the Constitution of the Grafton District Services Club Limited (“the Club”) in the form presented to the meeting (and having previously been made available to members on the Club’s notice board and on request) be adopted as the Constitution of the Club in substitution for and to the exclusion of the existing Memorandum and Articles of Association of the Club.

NOTES TO MEMBERSSpecial Resolution

1. The Special Resolution is to adopt a new Constitution of the Club to replace the existing Constitution. Please refer to the Explanatory Memorandum which accompanies this notice as it sets out a summary and the effect of the proposed Constitution and the reasons why it is proposed by the Board.

2. If members want copies of the proposed new Constitution and the existing Constitution, they can be obtained from the General Office. A copy of the proposed Constitution and a copy of the existing Constitution are also on display on the Club Notice Board.

3. To be passed a Special Resolution must receive votes from not less than three quarters of those members who being eligible to do so vote in person on the Special Resolution at the meeting. Under the Registered Clubs Act members who are employees of the Club are not entitled to vote. Proxy voting is prohibited by the Registered Clubs Act.

4. Under the existing Constitution Life members, financial RSL members, Other Sub Branch members and Associate members are eligible to attend and vote at the meeting.

5. Amendments (other than minor typographical corrections which do not alter the substance or effect of the Special Resolution or the proposed new Constitution) will not be permitted from the floor of the meeting.

6. The Board of the Club recommends to members to vote in favour of adopting the new Constitution.

Dated: Monday 31 August 2015 On behalf of the Board

Garry Williams Chief Executive Officer

NOTICE OF SPECIAL RESOLUTION FOR ANNUAL GENERAL MEETING


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Enclosed with this Memorandum is the Notice of the Annual General Meeting of the Club which is to be held on Monday the 26th October 2015. At the Annual General Meeting the members will be asked to consider and if thought fit pass a Special Resolution to adopt a new Constitution to replace the existing Memorandum and Articles of Association of the Club.This Explanatory Memorandum is to assist members to understand the proposed new Constitution and why it is appropriate to adopt it.Members who wish to review the proposed new Constitution can inspect it at the Club where it is prominently on display on the Club Notice Board together with a copy of the existing Memorandum and Articles of Association.Members may also obtain a copy of the proposed new Constitution and the existing Memorandum and Articles of Association upon request at the Club’s office.The existing Memorandum and Articles of Association of the Club were adopted some time ago. Although the Articles have been amended over time, the Club’s lawyers have advised that in many respects the existing document is out of date and does not strictly comply with what is contained in the Corporations Act, Registered Clubs Act, Liquor Act, Gaming Machines Act or their respective Regulations.A summary of the proposed new Constitution and its principal features is set out below. Significant variations from the existing Memorandum and Articles of Association have been set out in bold. However, there are many additional new provisions which reflect the requirements of various pieces of legislation which impact on the Club. These have not been set out in bold.NAME1. Rule 1 states that the name of the company is Grafton District Services Club Limited.PRELIMINARY 2. Rule 2.1 states that the Club is a company limited by guarantee and a non-proprietary company.3. Rule 2.2 provides that the company is established for the purposes set out in the Constitution.4. Rule 2.3 provides that the replaceable rules referred to in the Corporations Act are displaced or modified as provided

in the Constitution.5. Rule 2.4 provides that the Club must supply a member with a copy of the Club’s Constitution if a copy is requested by

a member as prescribed by the Corporations Act.DEFINITIONS6. Rule 3 sets out definitions and terms used in the proposed new Constitution.OBJECTS7. Rule 4 sets out the objects for which the Club was established. 8. The objects reflect those in the existing Memorandum of Association. However, slight alterations have been made to

bring the objects into line with the Liquor Act and Registered Clubs Act.WINDING UP AND MEMBER’S LIABILITY 9. Rule 5 states that the liability of the members is limited. That limit is $5.00 as set out in Rule 6.10. Rule 6 provides that each member of the Club undertakes to contribute such amount as may be required not

exceeding $5.00 if the Club is wound up and the assets of the Club are insufficient to discharge the liabilities. This undertaking continues for a period of 12 months after the person ceases to be a member.

11. Rules 7.1 and 7.2 provide that on the winding up of the Club, if there remains any assets after the satisfaction of all debts and liabilities, those assets shall not be distributed among the members but shall be given or transferred to the Grafton District Services Sub-Branch of the Returned Services League of Australia.

PROPERTY AND INCOME 12. Rule 8.1 provides that the property and income of the Club must be applied solely towards the promotion of the

objects of the Club.

EXPLANATORY MEMORANDUM FOR PROPOSED NEW CONSTITUTION


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13. Rules 8.2 and 8.3 set out specific requirements of the Registered Clubs Act in relation to benefits available to members.

14. Rule 8.4 provides that a director of the Club cannot be appointed or elected to any office of the Club paid by salary or wages or any similar basis of remuneration.

15. Rule 8.5 provides that the payment in good faith of reasonable and proper remuneration to any officer, employee or to any member of the Club for services actually rendered is not prohibited.

16. Rule 8.6 specifies that a director shall not receive from the Club remuneration or any other benefit in money or monies worth except by way of an honorarium, reasonable out of pocket expenses or interest on money lent by the director to the Club or rent on property leased to the Club by the director.

LIQUOR & GAMING 17. Rules 9.1 and 9.2 provide that liquor shall only be supplied to persons of or over the age of 18 years in accordance

with the Registered Clubs Act. 18. Rule 9.3 states that a person using the gaming facilities of the Club must be of or over the age of 18 years.19. Rules 9.4 to 9.6 inclusive prohibit a person associated with the Club from receiving direct or indirect benefits including

but not limited to monetary payments or commissions from liquor sales and/or the use of poker machines at the Club.MEMBERSHIP20. Rule 10.1 provides that the number of full members shall not exceed the maximum permissible under the Registered

Clubs Act.21. Rule 10.2 states that no person under the age of 18 years is to be admitted as a member of the Club.22. Rules 10.3 and 10.4 set out the categories of membership of the Club. Full membership of the Club shall be divided

into the following categories: - RSL members; - Other Sub-Branch members; - Associate members; and - Life members.

23. Rule 10.5 provides that the number of full members having the right to vote in the election of the Board shall not be less than the minimum number of full members required by the Registered Clubs Act.

RSL Members24. Rules 10.6 and 10.7 set out the eligibility requirements and the entitlements of RSL members which reflect the

existing Articles and practice of the Club. RSL members have the right to attend and vote at all meetings of the Club and subject to the Constitution the right to nominate for and be elected to the Board

Other Sub-Branch Members25. Rules 10.8 and 10.9 set out the eligibility requirements and the entitlements of Other Sub-Branch members which

reflect the existing Articles and practice of the Club. Other Sub-Branch members have the right to attend and vote at all meetings of the Club and subject to the Constitution the right to nominate for and be elected to the Board

Associate Members26. Rules 10.10 to 10.11 set out the eligibility requirements and the entitlements of Associate members which reflect

the existing Rules and practice of the Club. As the current rules provide Associate members who have had at least 5 continuous year’s membership are eligible to attend and vote at all meetings of the Club and be elected to any position on the Board.

Life Members27. Rules 10.12 to 10.20 inclusive set out the eligibility requirements and the entitlements of Life members which reflect

the existing Articles and practice of the Club.Transfer between classes of membership28. Rules 11.1 to 11.4 inclusive provide for the transfer of members between classes of membership.


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Provisional Members29. Rule 12 deals with Provisional membership. Any person may apply for Provisional membership upon entering

the Club, completing and submitting to the Club the appropriate membership form and paying the membership subscription in advance. A Provisional member is entitled to use the facilities of the Club pending a determination by the Board on that person’s suitability for membership or for six (6) weeks whichever is the sooner.

Honorary Members30. Rule 13 deals with Honorary membership in a way that is consistent with the Registered Clubs Act.Temporary Members31. Rule 14 deals with Temporary membership in a way that is consistent with the requirements of the Registered Clubs

Act. ELECTION OF MEMBERS32. Rule 15 deals with the system of electing members to the Club.JOINING FEES, SUBSCRIPTIONS AND LEVIES33. Rule 16 deals with joining fees, subscriptions and levies. Subscriptions shall be due and payable in advance annually.

Renewal notices must be sent to all members. Any person who has not paid his or her subscription by the due date shall cease to be entitled to the privileges of membership of the Club and may by resolution of the Board be removed from membership of the Club.

NON-FINANCIAL MEMBERS34. Rule 17 sets out the rights and privileges that non-financial member are not entitled to.REGISTERS OF MEMBERS AND GUESTS35. Rule 18 sets out the registers the Club is required to maintain in respect of full, Honorary and Temporary members as

well as guests of members over the age of eighteen years. This is consistent with the Registered Clubs Act.ADDRESSES OF MEMBERS36. Rule 19 states that members must advise the Club of any change in their address within 7 days to ensure compliance

with the Registered Clubs Act.DISCIPLINARY PROCEEDINGS 37. Rule 20 deals with powers of the Board to discipline members. The provisions reflect the existing Rules. 38. Rule 21 clarifies that the Board may, by resolution, delegate its disciplinary powers to a disciplinary

committee comprising three (3) directors. The Board retains the power to review a decision of a disciplinary committee provided the Board follows the procedure set out in Rule 21.3.

39. Rule 22 sets out that any member suspended pursuant to Rules 20 or 21 shall cease to be entitled to the rights and privileges of membership, which include the right to attend at the premises of the Club, the right to participate in the social and sporting activities of the Club, the right to vote, the right to attend meetings of the Club and the right to be elected to the Board.

40. Rule 23 deals with the power given to the Secretary and employees of the Club under the Liquor Act to remove any person who, when on the premises of the Club, is then intoxicated, violent, quarrelsome, disorderly or smoking in a smoke free area and to prevent that person from returning to the Club. These powers given to the Secretary and employees are no wider than those given under the Liquor Act.

41. Rule 24 deals with the procedure for a member to resign from the Club.GUESTS 42. Rule 25 deals with guests and reflects the provisions of the Registered Clubs Act. 43. Every guest must be introduced by a member and that member must complete and sign the Guests Register in order

for that guest to enter the Club. The only exception to this is in relation to a guest who is a minor. A minor may be admitted as a guest of a member without the member having to complete the Guests Register. However, the minor (like any other guest) must remain in the reasonable company of that member at all times while on the premises of the Club.


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PATRONS44. Rule 26 deals with patrons of the Club. The members of the Club may appoint patrons at a general meeting. Patrons

who are not full members of the Club shall be Honorary members of the Club whilst they remain a patron of the Club.BOARD OF DIRECTORS 45. Rule 27 deals with the composition of the Board. The Board will continue to consist of 7 directors comprising of a

President, 2 Vice-Presidents and 4 other directors 46. Rule 27.2 provides that the Board will continue to be elected every 2 years.47. Rule 27.3 provides that

- Life members; - RSL Members; - Other Sub-Branch Members; and - Life members,

48. Rule 27.4 states that a member who is an employee or currently under suspension or not a financial member shall not be eligible to stand for or be elected or appointed to the Board.

49. Rule 27.5 is a new rule which requires directors to undertake such mandatory director training as stipulated by the Registered Clubs Act.

50. Rule 27.6 provides that a member must have been a financial member of the club for a period of at least 2 years as at the close of nominations in order to be able to elected or appointed to the Board.

ELECTION OF BOARD 51. Rule 28 sets out the system for electing the Board. The provisions are more comprehensive than the existing Articles

however they generally reflect the existing Articles and the established practice of the Club. The Board will now determine the days and the times for the ballot instead of the current article 32 (c) which provides that the ballot is to be held over 7 days between the hours of 10.00am and 8pm.

POWERS OF THE BOARD 52. Rule 29 deals with the Board’s powers more comprehensively than the existing Articles. The power of the Board

to dispose of Club land has been amended to clarify that the power is subject to the restrictions contained in the Registered Clubs Act and the Liquor Act.

PROCEEDINGS OF THE BOARD53. Rule 30 deals with proceedings of the Board and reflect the existing Articles. 54. The President may at any time and the Secretary shall upon the request of two (2) directors convene a meeting of the Board. 55. The quorum for a meeting of the Board shall be five (5). 56. All decisions of the Board are determined by a majority vote. In the case of an equality of votes the chairperson of the

meeting has a second or casting vote.DECLARATIONS OF INTERESTS BY DIRECTORS57. Rule 31 relates to directors interested in matters that come before the Board. The provisions reflect the requirements

of the Registered Clubs Act and the Corporations Act.58. Directors are required to declare any material personal interest that they may have in a matter that relates to the

affairs of the Club. 59. A director with a material personal interest must abstain from taking any part in any discussion or voting on any

matter in which that director has such interest. CONTRACTS BETWEEN THE CLUB, DIRECTORS AND SECRETARY60. Rule 32 provides the circumstances where the Club can enter into a contract with a director. 61. Rule 33 prohibits the Club from entering into a commercial arrangement or contract with the Secretary, a close

relative of the Secretary, or any company or other body in which the Secretary or a close relative of the Secretary has a controlling interest. However, this does not apply to a contract of employment, or any other contract permitted by the Registered Clubs Act.


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REMOVAL FROM OFFICE OF DIRECTORS62. Rule 34 provides that the members in general meeting may by ordinary resolution remove any director, or the whole

Board, before the expiration of his, her or their period of office and appoint another person or persons in his, her or their place.

VACANCIES ON THE BOARD63. Rule 35.1 clarifies how a vacancy on the Board arises. 64. Rule 35.3 states that the Board has the power to fill a casual vacancy. Any person appointed to fill a casual vacancy

will hold office only until the next Biennial General Meeting.GENERAL MEETINGS65. Rules 36.1 to 36.19 inclusive relate to the calling and holding of general meetings (and Annual General Meetings) of

the Club. The provisions are more comprehensive than the existing Articles. However, they reflect the existing Articles, the Corporations Act and the established practice of the Club in all respects.

ATTENDANCE AND VOTING AT GENERAL MEETINGS66. Rules 36.20 to 36.32 inclusive relate to attendance and voting at general meetings.67. Life members, RSL members, Other Sub-Branch members and Associate members may attend and vote at a general

meeting (and an Annual General Meeting) of the Club. 68. Proxy voting is not permitted. This is a requirement of the Registered Clubs Act.69. Every member eligible to vote, either by show of hands or a poll, is entitled to one vote.70. A member, who is also an employee of the Club, is not permitted to vote. This is a requirement of the Registered

Clubs Act.71. All questions and resolutions (other than Special Resolutions) shall be decided by a simple majority of votes.72. Voting shall be on a show of hands unless a poll is demandedQUORUM AT GENERAL MEETINGS73. Rules 36.33 to 36.36 inclusive detail the quorum required for general meetings. These rules reflect the current

Articles.74. The quorum for any meeting convened by the Board will remain at 20 members.75. The quorum for any meeting called by members will remain at 35.76. No business may be transacted at a general meeting unless a quorum of members is present. 77. Rules 36.36 and 36.37 inclusive set out the procedure to be followed if a quorum is not present. 78. Rules 36.38 to 36.41 deal with the procedures to follow for adjournments of general meetings.MEMBERS’ RESOLUTIONS AND STATEMENTS79. Rule 37 amends existing provisions relating to members submitting items of business and notices of motion for

Annual General Meetings of the Club. 80. The proposed new Constitution provides that individual members may submit items of business and notices of motion

provided they are received by the Secretary of the Club at least forty-two (42) days prior to the date fixed for an Annual General Meeting.

81. Forty-two (42) days will allow sufficient time for the item of business or notice of motion to be incorporated into the notice of meeting and sent to members and if necessary for the Board to get advice about the particular item of business or notice of motion.

82. The Board retains the discretion as to whether to include items of business or notices of motion in the business of the Annual General Meeting.

83. Rule 37 also sets out the procedure for members to compel the Board to include an item of business or a notice of motion in the business of an Annual General Meeting. The procedure reflects the requirements of the Corporations Act.


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MINUTES84. Rule 38 provides that minutes of all resolutions and proceedings at general meetings must be entered in the Minute

Book within one month of the meeting and signed by the chairperson of that meeting or the chairperson of the next succeeding meeting.

ACCOUNTS 85. Rule 39 deals with the accounts and reporting to members and is consistent with the Corporations Act and Registered

Clubs Act. FINANCIAL YEAR86. Rule 40 provides that the financial year of the Club shall commence on the first day of July in each year and will end

on the last day of June in the same year. There is no change to the financial year of the Club.AUDITOR 87. Rule 41 requires the Club to appoint an auditor. The auditor holds office until removed by the members in general

meeting or resigns from office or dies. This is a requirement of the Corporations Act.SECRETARY 88. Rule 42 requires the Board to appoint one Secretary who will be the Chief Executive Officer of the Club for the

purposes of the Registered Clubs Act. EXECUTION OF DOCUMENTS89. Rule 43 deals with execution of documents and the common seal of the Club.NOTICES 90. Rule 44 deals with the requirements of giving notice to members. Where a notice of a meeting is sent by post it shall

be deemed to have been effectively served on the member on the day following the posting.INDEMNIFICATION OF OFFICERS 91. Rule 45 deals with the insurance and indemnification of the officers and auditors of the Club in accordance with the

Corporations Act.INTERPRETATION 92. Rule 46 provides that a decision of the Board on the construction or interpretation of the Constitution or any Rule, or

any By-Law of the Club made pursuant to this Constitution or on any matter arising therefrom, shall be conclusive and binding on all members of the Club.

AMENDMENTS TO CONSTITUTION 93. Rule 47 provides for amendments to the Constitution. The Constitution can only be amended by way of Special

Resolution passed at a general meeting of members. Only Life members, RSL members, Other Sub-Branch members and Associate members shall be shall be eligible to vote on any Special Resolution to amend the Constitution.

It is hoped that this summary will provide members with sufficient background and information to enable them to make an informed decision in relation to the proposed special resolution to adopt the new Constitution. However, there may be matters about which members may have questions not covered by this Memorandum. In those circumstances, they are invited to raise their questions with the Secretary of the Club who if necessary will obtain advice from the Club’s lawyers to pass back to the member.The Board of the Club considers that the proposed new Constitution as being a significant improvement on the existing Memorandum and Articles of Association and recommend that members vote in favour of the Special Resolution.To be passed the Special Resolution will need votes from not less than three-quarters (75%) of those members who being eligible to do so vote in person at the meeting.Dated: Monday 31 August 2015

Garry Williams Chief Executive Officer


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PRESIDENT’S REPORT 2015

It is with great pleasure that I present the 2015 Annual Report of Grafton District Services Club Limited. This report details the overall achievements made by Garry Williams and his management team in particular our financial situation throughout the year. With careful management of our operations expenditures we have delivered a result in line with expectations, returning a surplus of $224,592.

This year has seen a restructure of staffing roles and responsibilities which has primarily focused on improving the efficiency of our clubs delivery of service and the alignment of the management structure to the clubs business priorities. Processes have been introduced to further enhance business planning with member’s needs and expectations as our focal point. These processes will require change but I am sure will maintain and increase the level of support we are able to give in returns to members and donations. Last year we increased this to $1,092,509.

I would like to thank my fellow Club Directors, staff as well as all our clubs sporting and social clubs. We have amazing people involved in our club, all who share a passion for what we do and a shared commitment to provide and build an improved facility to cater for our existing and future members.

In conclusion I hope you have all enjoyed the past year as a member of our club and are inspired by the contents of this report. Overall this report reflects great examples of how a collective of management and members can build a better club to serve our community.

Warren Tozer President


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CHIEF EXECUTIVE OFFICER’S REPORT

It gives me great pleasure to present the Chief Executive Officer’s report to members for the year ended 30th June, 2015. The last year, again has been very challenging for the club and the industry as a whole. Our trading profit of $224,592 was an increase of $155,093 on 2014.

E.B.I.T.D.A for 2015 was $1,193,221, an increase of $100,838 (9.2%) in earnings before interest, tax and depreciation. This result has been achieved through the hard work of the employees of the GDSC and the support of the members.

Financial factors include Operating Revenue for the year was $10,620,276 with operating expenses for the year of $10,395,684 and returns to members of $1,092,509 (once again an increase on 2014 of $84,821).

We value our relationship with our community, and through the club GRANTS scheme, have assisted many organisations, representing Sport, Health, Education and Community Services. Our contribution this year was in excess of $100,000.

I wish to express my sincere gratitude to all our staff. Their efforts and commitment are greatly appreciated and contribute to the overall success of our club.

Regrettably, the club has endured the loss of many good and loyal members during the year, to all members who have lost loved ones, I extend condolences on behalf of all members.

To the Board of Directors of the GDSC I would like to take this opportunity to thank all of you for your efforts during the year and look forward to further improving the clubs amenities for the benefit of our members and visitors.

G.E. Williams, JP, CCM. CHIEF EXECUTIVE OFFICER


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FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Contents PAGE

Directors’ Report ............................................ 14

Auditors’ Independence Declaration .............. 17

Statement of Profit or Loss and Other Comprehensive Income ....................... 18

Statement of Financial Position ...................... 19

Statement of Changes in Equity ..................... 20

Statement of Cash Flows ............................... 21

Notes to the Financial Statement ................... 22

Directors’ Declaration ..................................... 36

Independent Auditors’ Report ........................ 37

Disclaimer ....................................................... 39

Profit and Loss Statement .............................. 28


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DIRECTOR’S REPORT FOR THE YEAR ENDED 30 JUNE 2015

Surplus, after income tax expense, for the financial year was $224,592.

Cash flow from operating activities for the financial year was $841,969.

Membership for the financial year was 7,347.

Performance Measurement

The company uses the following key performance indicators to measure performance:

the company has complied with all Work, Health and Safety, Employment and Environmental requirements.

the monitoring of the ongoing business and strategic plan that identifies the future for the club and the initiatives that will needto be implemented to promote the club.

to ensure a sustainable club.

to continue to be financially secure.

to grow the company operations in accordance with member interests.

to provide a workplace that is compliant with industry standards and the Fair Work Act.

the review of the company compliance with work health and safety and compliance with employment law including the FairWork Act.

Strategies

The company has identified the following long term objectives:

The company has adopted the following strategies in order to achieve these objectives:

The company has identified the following short term objectives:

to provide services to members commensurate with industry needs and regulatory requirements.

the preparation of an annual budget for financial performance and the regular review of the company performance against thebudget by management and directors.

to encourage more members to use club sporting facilities.

to meet financial viability and accountability requirements.

These principal activities assist in achieving the short term and long term objectives of the company by:

Your directors present their report on the company for the financial year ended 30 June 2015

Principal Activities

The company's principal activities are the operation of a registered club for the promotion of sport in Grafton and the surroundingdistrict.

providing turnover, cash flow and profit to meet the financial objectives of the company.

providing sporting facilities for the members and the community.

providing entertainment, dining, gaming and social facilities for members and the community.

Short and Long Term Objectives of the Company

GRAFTON DISTRICT SERVICES CLUB LIMITEDABN 90 001 041 327

DIRECTORS REPORTFOR THE YEAR ENDED 30 JUNE 2015

Page 1


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DIRECTORS REPORTFOR THE YEAR ENDED 30 JUNE 2015

Directors Name Special Responsibilities

Period as Director

Warren Tozer PresidentFinance and Incident Committees

Appointed 31 October 2005

Trevor Coleman Vice PresidentFinance Committee


Ian Speechley Vice PresidentIncident and Finance Committees


Janice Gillett DirectorFinance and Incident Committees

Appointed29 March 1999

Alfred Hall DirectorIncident Committee

Appointed25 October 2010

Paul Harvison Director Appointed25 October 2010

Dennis Pearce Director Appointed 31 October 2011

Eligible toattend

Number attended

Warren Tozer 12 11Trevor Coleman 12 11Ian Speechley 12 10Janice Gillett 12 10Alfred Hall 12 12Paul Harvison 12 12Dennis Pearce 12 10

Business ProprietorDirector 4 years

Retired Police SergeantDirector 7 years, Vice President 2 year

Retired Regional Manager Tooheys, Powers & Carlton Breweries for 46 YearsDirector 10 years, Vice President 4 years, President 5 years

Business ProprietorDirector 10 years, Vice President 7 years

Prison Manager 30 yearsDirector 5 years

Meetings of Directors

Registered Nurse for 54 yearsJustice of the Peace for 45 yearsDirector 16 years, Vice President 3 years

Hospitality Worker 28 yearsRetail Sales Worker for 5 yearsBusiness ProprietorDirector 5 years

Directors' Meetings

During the financial year, 12 meetings of directors (including special meetings of directors) were held and the attendances byeach director during the year were as follows:

Directors Information

Qualifications and Experience

The names of the directors in office at any time during, or since the end of, the year and the period that each director has beenin office:

Directors

Company Secretary

Garry Williams was appointed as the company secretary on 5 September 2013. Garry has worked in the Registered Clubsindustry for 27 years.

Page 2


16



17

Crowe Horwath Central North is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

Crowe Horwath Central North ABN 91 680 058 554 Member Crowe Horwath International 24 Queen Street Grafton NSW 2460 Australia PO Box 13 Grafton NSW 2460 Australia Tel 02 6640 9200 Fax 02 6642 7993 www.crowehorwath.com.au

AUDITORS' INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATION ACT 2001

TO THE DIRECTORS OF GRAFTON DISTRICT SERVICES CLUB LIMITED

ABN 90 001 041 327

I declare that, to the best of my knowledge and belief, during the financial year to 30 June 2015 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.

CROWE HORWATH CENTRAL NORTH

Leah J Russell Registered Company Auditor (ASIC RAN 299077) 24 Queen Street GRAFTON NSW 2460 Dated: 7 September 2015

AUDITORS’ INDEPENDENCE DECLARATIONUNDER SECTION 307C OF THE CORPORATION ACT 2001

TO THE DIRECTORS OFGRAFTON DISTRICT SERVICES CLUB LIMITED

ABN 90 001 041 327





ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.




18

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015

2015 2014Note $ $

Sales revenue 3 4,517,489 4,358,575Cost of goods sold 4 (2,272,782) (2,216,849)

Gross profit 2,244,707 2,141,726

Gaming revenue 5,536,649 5,503,258Other revenue 3 566,138 557,261Advertising and promotional expenses 4 (478,341) (476,035)Depreciation and amortisation expenses 4 (943,839) (1,022,302)Employee benefits expense 4 (3,010,651) (3,166,404)Finance costs 4 (24,790) (682)Occupancy expenses 4 (956,731) (856,607)Poker machine taxes 4 (1,041,188) (1,040,111)Returns to members 4 (1,092,509) (1,007,688)Other expenses 4 (574,853) (562,917)

Surplus before income tax expense attributable to members 224,592 69,499Income tax expense 1(b), 5 - -

Surplus after income tax expense 224,592 69,499

Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year attributable to members 224,592 69,499


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 30 JUNE 2015

The accompanying notes form part of these financial statements.Page 5

The accompanying notes form part of these financial statements.

2015$

2014$NOTE


19

2015 2014Note $ $

ASSETS

CURRENT ASSETS

Cash and cash equivalents 6 614,677 565,428Trade and other receivables 7 72,333 72,869Inventories 8 182,689 169,736Other current assets 9 145,222 143,922

TOTAL CURRENT ASSETS 1,014,921 951,955

NON CURRENT ASSETS

Financial assets 10 250 250Property, plant and equipment 11 12,247,155 12,297,614Investment property 12 864,635 513,729Intangible assets 13 72,054 72,054

TOTAL NON CURRENT ASSETS 13,184,094 12,883,647

TOTAL ASSETS 14,199,015 13,835,602

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 14 872,033 925,721Borrowings 15 419,718 48,500Employee benefits 17 487,912 538,040Other liabilities 18 3,935 9,621

TOTAL CURRENT LIABILITIES 1,783,598 1,521,882

NON CURRENT LIABILITIES

Trade and other payables 14 - 125,227Borrowings 15 36,462 -Employee benefits 17 47,760 88,164Other liabilities 18 42,451 36,177

TOTAL NON CURRENT LIABILITIES 126,673 249,568

TOTAL LIABILITIES 1,910,271 1,771,450

NET ASSETS 12,288,744 12,064,152

EQUITY

Retained surpluses 12,288,744 12,064,152

TOTAL EQUITY 12,288,744 12,064,152

STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2015




STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 30 JUNE 2015

2015$

2014$NOTE


20

Retained TotalSurpluses

$ $

Balance at 1 July 2013 11,994,653 11,994,653

Surplus after income tax expense 69,499 69,499Total other comprehensive income for the year - -

Balance at 30 June 2014 12,064,152 12,064,152

Surplus after income tax expense 224,592 224,592Total other comprehensive income for the year - -

Balance at 30 June 2015 12,288,744 12,288,744


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2015



STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

Retained Surpluses

$

Total

$


21

2015 2014Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Surplus from ordinary activities after income tax expense 224,592 69,499

Adjustments for:

Non cash flows in profit from ordinary activities:

Depreciation and amortisation 943,839 1,022,302Profit on sale of fixed assets (43,886) (59,253)

Changes in Assets and Liabilities:

Decrease/(increase) in trade and other receivables 536 (1,698)Decrease/(increase) in inventories (12,953) (3,811)(Increase)/decrease in prepaid expenses (1,300) (28,148)Increase/(decrease) in creditors and accruals (178,915) 11,178Increase/(decrease) in provisions (90,532) 752Increase/(decrease) in other liabilities 588 (9,883)

Income tax paid 1(b), 5 - -

Net cash provided by operating activities 841,969 1,000,938

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 98,489 98,952Purchase of property, plant and equipment (1,298,889) (1,446,784)

Net cash used in investing activities (1,200,400) (1,347,832)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 410,097 38,500Repayment of borrowings (2,417) -

Net cash provided by financing activities 407,680 38,500

Net decrease in cash held 49,249 (308,394)

Cash at the beginning of the financial year 565,428 873,822

Cash at the end of the financial year 6 (a) 614,677 565,428


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2015



STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

2015$

2014$NOTE


22

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015

Note 1: Statement of Significant Accounting Policies

Basis of Preparation

Accounting Policies

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requiresmanagement to exercise its judgement in the process of applying the company's accounting policies. The areas involving ahigher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financialstatements, are disclosed in note 1 (o).

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based onhistorical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assetsand financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

Rent revenue from investment properties is recognised when the right to receive the income has been established in line withthe lease.

(a) Revenue

NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2015

All revenue is stated net of the amount of goods and services tax (GST).

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards -Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board ('AASB') and theCorporations Act 2001, as appropriate for not-for-profit oriented entities.

The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies havebeen consistently applied to all the years presented, unless otherwise stated.

The financial statements cover Grafton District Services Club Limited as an individual entity. Grafton District Services ClubLimited is a public company limited by guarantee, incorporated and domiciled in Australia.

Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discountsand volume rebates allowed.

The financial statements were authorised for issue by the directors on 31 August 2015.


Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rateinherent in the instrument.

Revenue form the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks andrewards of ownership of the goods and the cessation of all involvements in those goods.

Other revenue is recognised when the right to receive the income has been established.

Page 9


23




Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probablethat future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

The income tax expense (income) for the year comprises current income tax expense (income) and deferred tax expense(income).

(f) Inventories

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset isrealised or the liability is settled, and their measurement also reflects the manner in which management expects to recover orsettle the carrying amount of the related asset or liability.

Trade and other receivables include amounts due from customers for goods sold and services performed in the ordinary courseof business. Receivables expected to be collects with 12 months of the end of the reporting period are classified as currentassets. All other receivables are classified as non-current assets.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in normaloperating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reportingperiod; or the asset is cash or cash equivalent unless restricted from being exchange or used to settle a liability for at least 12months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in normal operating cycle; it is held primarily for thepurpose of trading; it is due to be settled with 12 months after the reporting period; or there is no unconditional right to defer thesettlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

(e) Trade and Other Receivables

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investmentswith original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings incurrent liabilities on the statement of financial position.

Current tax assets and liabilities are offset where a legally enforceable right to set-off exists and is intended that net settlementor simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities areoffset where a legally enforceable right of set-off exists, and the deferred tax assets and liabilities relates to income taxes leviedby the same taxation authority on either the same taxable entity or different taxable entities, where it is intended tat netsettlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in whichsignificant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

(b) Income Tax

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year aswell as unused tax losses.

(c) Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

(d) Cash and Cash Equivalents

Inventories are measured at the lower of cost and net realisable value on a first in first out basis.

Current and deferred income tax expense (income) is charged or credited outside profit or loss when the tax relates to itemsthat are recognised outside profit or loss.

Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost using theeffective interest rate method, less any provision for impairment. Refer to Note 1(i) for further discussion on the determination of impairment losses.

Current income tax expense charged to the profit or loss is the tax payable on taxable income. Current tax liabilities (assets) aretherefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

Page 10


24



Class of Fixed Asset Depreciation Rate

Buildings and Improvements 3%Plant & Equipment, Furniture & Fittings 10-20%

The assetsʼ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

The depreciable amount of all fixed assets including building and capitalised leased assets, but excluding freehold land, isdepreciated on a straight-line basis over their useful lives to the company commencing from the time the asset is held ready foruse. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimateduseful lives of the improvements.

The depreciation rates used for each class of depreciable asset are:

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

Property

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverableamount from these assets. The recoverable amount is assessed on the basis of expected net cash flows which will be receivedfrom the assets employment and subsequent disposal. The expected net cash flows have been discounted to their presentvalues in determining the recoverable amounts.

Subsequent costs are included in the assetʼs carrying amount or recognised as a separate asset, as appropriate, only when it isprobable that future economic benefits associated with the item will flow to the company and the cost of the item can bemeasured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during thefinancial period in which they are incurred.

Plant and Equipment

(h) Intangibles

The poker machine entitlements shown in the accounts at cost. The company holds other poker machine entitlements that havea market value. If the company were to be wound up or the number of entitlements were in excess of requirements then thepoker machine entitlements would be able to be sold at the prevailing market price. Poker machine entitlements are intangibleassets classified with an indefinite life. The intangible asset is subject to annual impairment testing to the higher of fair valueless related costs to sell and value in use.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses areincluded in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluationreserve relating to that asset are transferred to retained earnings.

Poker Machine Entitlements

Freehold land and buildings are shown at cost less depreciation and impairment losses.

(g) Property, Plant and Equipment

Depreciation

An assets' carrying amount is written down immediately to its recoverable amount if the assets' carrying amount is greater thanits estimated recoverable amount.

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulateddepreciation and impairment losses.

Page 11



25



In addition, the company has a pre-approved finance facility with a limit of $1,121,359 at 30 June 2015, of which an amount of$409,702 was owing, allowing for ready access to short terms funds if considered necessary by the directors and management.This facility expires on 26 February 2016. Following the end of the reporting period, the company has entered into new financefacilities to replace this facility as described in Note 20.

In the unlikely event that the above results in a negative outcome, then the going concern basis may not be appropriate. Noallowance for such circumstances has been made in the financial report.

(n) Going Concern

The financial statements have been prepared on a going concern basis, which assumes that the company will be able tocontinue their trading activities. The company has recognised a profit after income tax of $224,592 and positive net operatingcash flows of $841,969 for the year ended 30 June 2015 and as at that date, current liabilities exceed current assets by$768,677.

The company is in a net current liability position largely due to the level of current employee benefits owing at 30 June 2015.The company does not expect that the full amount of employee benefits would be required to be repaid within a 12 monthperiod, unless the company was to wind up operations of which the directors currently have no intention.

Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the receivableamount of the cash-generating unit to which the asset belongs.

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is notrecoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition ofthe asset or as part of an item of the expense. Receivables and payables in the statement of financial position are showninclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing andfinancing activities, which are disclosed as operating cash flows.

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services receivedby the company during the reporting period, which remain unpaid. The balance is recognised as a current liability with theamounts normally paid within 30 days of recognition of the liability.

(j) Trade and Other Payables

(k) Borrowings

Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They aresubsequently measured at amortised cost using the effective interest rate method.

(l) Employee Benefits

Provision is made for the companyʼs liability for employee benefits arising from services rendered by employees to the end ofthe reporting period. Employee benefits that are expected to be settled within one year have been measured at the amountsexpected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at thepresent value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration isgiven to employee wage increases and the probability that the employee may not satisfy vesting requirements.

(i) Impairment of Assets

At the end of each reporting period, the company assesses whether there is any indication that an asset may be impaired. Theassessment will include considering external sources of information and internal sources of information. If such an indicationexists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of theasset's fair value less costs to sell and value in use to the asset's carrying value. Any excess of the asset's carrying value of itsrecoverable amount is expensed to the statement of comprehensive income.

(m) Goods and Services Tax

Impairment testing is performed annually for intangible assets with indefinite lives.

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26



(p) New, revised or amending Accounting Standards and Interpretations adopted

The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by theAustralian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

There were no new standards this year that had a significant impact on the company. Any new, revised or amendingAccounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The company assesses impairment of indefinite life intangible assets at each reporting date by evaluating conditions specific tothe company and to the particular asset that may lead to impairment. If an impairment trigger exists, the recoverable amount ofthe asset is determined. This involves fair value less costs of disposal or value-in-use calculations, which incorporate a numberof key estimates and assumptions.

As discussed in note 1 (l), the liability for employee benefits expected to be settled more than 12 months from the reporting dateare recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees atthe reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases throughpromotion and inflation have been taken into account.

Impairment of indefinite life intangible assets

Employee benefits provision

(o) Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affectthe reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation toassets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptionson historical experience and on other various factors, including expectations of future events, management believes to bereasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actualresults. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to thecarrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plantand equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations orsome other event. The depreciation and amortisation charge will increase where the useful lives are less than previouslyestimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or writtendown.

Estimation of useful lives of assets

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27



Note 2: Accounting Policies, Changes in Accounting Estimates and Errors

Original Effect of Restated2014 Restatement 2014

$ $ $

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Gaming revenue - 5,503,258 5,503,258Other revenue 6,060,519 (5,503,258) 557,261Advertising and promotional expenses (476,035) - (476,035)Depreciation and amortisation expenses (1,022,302) - (1,022,302)Employee benefits expense (3,132,994) (33,410) (3,166,404)Finance costs (682) - (682)Occupancy expenses (780,158) (76,449) (856,607)Poker machine taxes - (1,040,111) (1,040,111)Returns to members - (1,007,688) (1,007,688)Other expenses (2,720,574) 2,157,657 (562,917)

Surplus before income tax expense attributable to members 69,499 - 69,499Income tax expense

Surplus after income tax expense 69,499 - 69,499

2015 2014Note $ $

Note 3: RevenueSales revenue:

Bar trading 1,892,191 1,815,959Butcher shop trading 1,146,405 1,134,289Catering trading 1,478,893 1,408,327

4,517,489 4,358,575

Gaming revenue 5,536,649 5,503,258

Other revenue:

Other Income 224,332 195,222Subscriptions 89,000 100,500TAB and Keno receipts 154,243 153,867Interest received from other persons 7,385 14,567Profit/(loss) on disposal of property, plant and equipment 43,886 59,253Rental revenue 47,292 33,852

566,138 557,261

Total revenue 10,620,276 10,419,094

During the 2015 reporting process, a number of accounts have been reclassified based upon the nature of the balances inorder to improve the accuracy of disclosures. These items were considered to be a material error, accordingly these balanceswere adjusted in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, the prior periodaccounts have been restated. What follows is the result of the restatement.

Page 14





$ $ $





2015 2014Note $ $



4,517,489 4,358,575

Gaming revenue 5,536,649 5,503,258

Other revenue:


566,138 557,261

Total revenue 10,620,276 10,419,094


Page 14


Retained Surpluses

$

Total

$

2015$

2014$NOTE

Original2014

$





$ $ $





2015 2014Note $ $



4,517,489 4,358,575

Gaming revenue 5,536,649 5,503,258

Other revenue:


566,138 557,261

Total revenue 10,620,276 10,419,094


Page 14


28

2015 2014Note $ $

Note 4: Profit Before Income Tax Expense

Expenses

Cost of sales 2,272,782 2,216,849

Advertising and promotional

Advertising 105,122 109,770Promotion 373,219 366,265

478,341 476,035

Depreciation and amortisationAmortisation 337,528 319,215Depreciation 606,311 703,087

943,839 1,022,302

Employee benefits expense

Fringe benefits tax 27,139 33,410Payroll tax 113,663 117,510Provision for employee entitlements 14,664 53,852Salary and wages 2,489,331 2,599,268Superannuation 257,656 287,363Other staff costs 108,198 75,001

3,010,651 3,166,404

Finance costs - external 24,790 682

Occupancy expensesInsurance 170,591 142,115Repairs and maintenance 418,472 323,214Utility expenses 356,756 377,238Other expenses 10,912 14,040

956,731 856,607

Poker machine duty 1,041,188 1,040,111

Returns to members 1,092,509 1,007,688

Other expenses

Directors expenses 44,705 42,068Printing, postage and stationery 116,377 119,746Professional costs 25,450 29,000Property expenses 30,969 20,412Other operating expenses 357,352 351,691

574,853 562,917



Page 15


2015$

2014$NOTE


29

2015 2014Note $ $



Note 5: Income Tax Expense

67,378 20,850

Less: Tax effect of;

Non-assessable profit from members (122,747) (92,326)Tax losses not brought to account 55,369 71,476

(67,378) (20,850)

Income tax expense attributable to the company - -

(b) The components of tax expense comprise:

Current tax - -Deferred tax - -

- -

Note 6: Cash and Cash Equivalents

Cash on hand 173,887 178,561Cash at bank 440,790 386,867

614,677 565,428

Cash and cash equivalents 614,677 565,428

614,677 565,428

Note 7: Trade and Other Receivables

CURRENT

Trade receivables 52,461 51,318Other receivables 19,872 21,551

72,333 72,869

A floating charge over cash and cash equivalents has been provided for certain debt. Refer to Note 15 for further detail.

(a) Reconciliation of cash and cash equivalents

Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows is reconciled to items in thestatement of financial position as follows:

(a) The prima facie tax on profit from ordinary activities before income tax isreconciled to the income tax as follows:

Prima facie tax payable on profit from ordinary activities before income tax at 30%(2014: 30%)

Page 16


2015$

2014$NOTE


30

2015 2014Note $ $



Note 8: Inventories

CURRENT

Stock on Hand, at cost:

Bar 80,781 80,502Butcher shop 13,242 10,291Membership cards 3,503 5,643Poker machine spare parts 3,834 6,755Restaurant 23,124 22,259Trophies 58,205 44,286

182,689 169,736

Note 9: Other Assets

CURRENT

Prepayments 145,222 143,922

145,222 143,922

Note 10: Financial assets

Available-for-sale financial assets 250 250

Note 11: Property, Plant & Equipment

Land, Buildings and Improvements (at cost)

Land, buildings and improvements 11,708,046 11,435,528Less: Accumulated depreciation (2,578,919) (2,251,644)

Total Land and Buildings 9,129,127 9,183,884

Plant and Equipment (at cost)

Plant and equipment 8,984,732 8,790,232Less: Accumulated depreciation (5,866,704) (5,676,502)

Total Plant and Equipment 3,118,028 3,113,730

Total Property, Plant and Equipment 12,247,155 12,297,614

(a) Movements in carrying amounts

Land and Buildings

Plant and Equipment Total

$ $ $

Balance at the beginning of the year 9,183,884 3,113,730 12,297,614Additions 272,517 665,446 937,963Disposals - (54,603) (54,603)Depreciation expense (327,274) (606,545) (933,819)

Carrying amount at the end of the year 9,129,127 3,118,028 12,247,155

(b) There is a registered mortgage over all properties owned by the company as well as a registered equitable mortgage overthe assets of the club including working capital.

(c) No impairment has been recognised in respect of plant and equipment.

Page 17


2015$

2014$NOTE

Plant andEquipment

$

Total

$

Land andBuildings

$


31

2015 2014Note $ $



Note 12: Investment property

Investment property (at cost) 930,084 568,882Less: Accumulated depreciation (65,449) (55,153)

Total Land and Buildings 864,635 513,729

(a) Movements in carrying amounts

Balance at the beginning of the year 513,729 474,948Additions 360,926 45,800Disposals - -Depreciation expense (10,020) (7,019)

Carrying amount at the end of the year 864,635 513,729

Note 13: Intangible Assets

Goodwill 41,247 41,247Less: accumulated amortisation (41,247) (41,247)

- -

Poker machine entitlements (at cost) 72,054 72,054

72,054 72,054

Poker Machine Entitlements

Note 14: Trade and Other Payables

CURRENT

Unsecured liabilities;

Trade payables 555,313 541,812GST payable 33,690 31,278Sundry payables and accrued expenses 283,030 352,631

872,033 925,721

NON CURRENT

Unsecured liabilities;

Trade payables - 125,227

- 125,227

Total Trade and Other Payables 872,033 1,050,948

The company purchased a poker machine system in March 2013 on extended payments terms. The purchase will be paid overa period of 36 months. This purchase has been included in the Trade Payables balance above and as at 30 June 2015 anamount of $125,227 (2014: $292,194) was owing.

Poker machine entitlements have been impairment tested using calculations of the higher of fair value, less costs to realise,and value in use. The directors believe that the carrying amount of poker machine entitlements are not impaired and annualimpairment testing will be conducted at 30 June 2016.

Poker machine entitlements are assessed as having an indefinite useful life. The measurement and recognition criteria isoutlined in Note 1 to the financial statements.

Page 18


2015$

2014$NOTE


32

2015 2014Note $ $



Note 15: Borrowings

CURRENT

Secured liabilities:

Bank loan 409,702 48,500Lease liability 10,016 -

419,718 48,500

NON-CURRENT

Secured liabilities:

Lease liability 36,462 -

36,462 -

Total Borrowings 456,180 48,500

Bank loan 409,702 48,500Lease liability 46,478 -

456,180 48,500

First mortgage over freehold land and buildings 9,129,127 9,183,884Mortgage debenture as a fixed and floating charge over company assets 4,060,031 3,994,067

13,189,158 13,177,951

Cash and cash equivalents 6 614,677 565,428Trade receivables 7 72,333 72,869Inventory 8 182,689 169,736Financial Assets 10 250 250Plant and Equipment 11 3,118,028 3,113,730Poker machine entitlements 13 72,054 72,054

4,060,031 3,994,067

Assets that have been pledged as part of the total collateral for the benefit of bank debt are as follows:

(c) The bank debt is secured by a first registered mortgage over certain freehold properties owned by the company and afloating charge over the other assets of the company. Covenants imposed by the bank require an interest coverage ratio of notless than 2.0, total wages to not exceed 30% of total revenue, net gaming machine revenue to be greater than $4,470,000 anddonations and grant to be less than 60% of net profit before income tax expense.

(b) The carrying amounts of non-current assets pledged as security are:

(a) Total current and non-current secured liabilities:

Page 19


2015$

2014$NOTE


33

2015 2014Note $ $



Note 16: Tax assets and liabilities

(a) Liabilities

CURRENT

Income tax - -

NON-CURRENT

Deferred tax liability - -

(b) Assets

CURRENT

Income tax - -

NON-CURRENT

Deferred tax asset - -

Temporary differences

Accrued expenses 1,370 1,086Provision for employee entitlements 33,747 31,936Provisions 2,466 2,403Tax losses 341,556 286,186

379,139 321,611

Note 17: Employee Benefits

CURRENT

Provision for employee benefits 487,912 538,040

487,912 538,040

NON CURRENT

Provision for employee benefits 47,760 88,164

47,760 88,164

Provision for employee benefits

A provision has been recognised for employee entitlements relating to annual and long service leave. In calculating the presentvalue of future cash flows in respect of long service leave, the probability of long service leave being taken is based onhistorical data. The measurement and recognition criteria relating to employee benefits has been included in Note 1 to thisreport.

Deferred tax assets not brought to account, the benefits of which will only be realisedif the conditions for deductibility set out in Note 1(b) occur are:

Page 20


2015$

2014$NOTE


34

2015 2014Note $ $



Note 18: Other Liabilities

CURRENT

Subscriptions received in advance 3,935 9,621

3,935 9,621

NON-CURRENT

Subscriptions received in advance 42,451 36,177

42,451 36,177

Note 19: Capital Commitments, Contingent Assets and Contingent Liabilities

(a) Finance Lease Commitments

Payable - minimum lease payments:

- not later than 12 months 10,016 -

- between 12 months and five years 36,462 -

Minimum lease payments 15 46,478$ -$

(b) Capital Expenditure Commitments

Note 20: Events After the End of the Reporting Period

No other matters or circumstances have arisen since the end of the financial year which significantly affected or maysignificantly affect the operations of the company, the results of those operations, or the state of affairs of the company infuture financial years.

The company entered into a 5 year agreement with Telstra to upgrade the phone system. The above represents paymentsowing for this facility.

The company did not have any capital commitments, contingent assets or contingent liabilities as at 30 June 2015.

Following the end of the reporting period, the company has entered into new finance facilities with the Commonwealth Bank ofAustralia to replace those facilities which has a maturity date of 26 February 2016. These new facilities expire on 2 September2018 with a facility limit of $1,106,702.

Page 21


2015$

2014$NOTE


35

2015 2014Note $ $



Note 21: Financial Risk Management

Financial assets

Cash and cash equivalents 6 614,677 565,428Loans and receivables 7 72,333 72,869Available-for-sale financial assets, at cost 10 250 250

687,260 638,547

Financial liabilities

Financial liabilities at amortised cost:Trade and other payables 14 872,033 1,039,770Borrowings 15 456,180 48,500

1,328,213 1,088,270

Note 22: Related Party Transactions

The totals of remuneration paid to key management personnel (KMP) during the year are as follows:

Key management personnel compensation 359,053 546,056

Transactions with related parties were:

3,725 1,865

11,623 2,248

Note 23: Company Details

GRAFTON NSW 2460

The registered office and principal place of business is:

Director, D Pearce, has an interest in a window blinds business that provides services to the club

Other Related Parties

105-107 Mary Street

Director, T Coleman, has an interest in a motor vehicle business that provides services to the club

Key Management Personnel

Transactions between related parties are on normal commercial terms and conditions no more favourable than those availableto other parties unless otherwise stated.

The club is incorporated and domiciled in Australia as a company limited by guarantee.

The company's financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable andpayable and leases.

The totals for each category of financial instruments measured in accordance with AASB 139 as detailed in the accountingpolicies to these financial statements, are as follows:

Page 22


2015$

2014$NOTE


36

DIRECTORS’ DECLARATION FOR THE YEAR ENDED 30 JUNE 2015


37



INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF GRAFTON DISTRICT SERVICES CLUB LIMITED

ABN 90 001 041 327

Report on the financial report We have audited the accompanying financial report of Grafton District Services Club Limited, which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity and statements 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 – Reduced Disclosure Requirements 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 is free from material misstatement, whether due to fraud or error. Auditor’s 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 auditor's judgement, including the assessment of 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 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.





ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.



INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF

GRAFTON DISTRICT SERVICES CLUB LIMITED

ABN 90 001 041 327


38





ABN 90 001 041 327

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, which has been provided to the directors of Grafton District Services Club Limited , would be in the same terms if given to the directors as at the time of this auditors' report. Audit Opinion In our opinion the financial report of Grafton District Services Club Limited is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company's financial position as at 30 June 2015 and of its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards Reduced Disclosure Requirements as

described in Note 1 and the Corporations Regulations 2001.







ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.



INDEPENDENT AUDITORS’ REPORTTO THE MEMBERS OF


ABN 90 001 041 327





ABN 90 001 041 327

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, which has been provided to the directors of Grafton District Services Club Limited , would be in the same terms if given to the directors as at the time of this auditors' report. Audit Opinion In our opinion the financial report of Grafton District Services Club Limited is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company's financial position as at 30 June 2015 and of its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards Reduced Disclosure Requirements as

described in Note 1 and the Corporations Regulations 2001.







ABN 90 001 041 327




audit.




39





ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.





DISCLAIMER


ABN 90 001 041 327

The additional financial data presented on page 27 is in accordance with the books and records of the company which have been subjected to the auditing procedures applied in our statutory audit of the company for the financial year ended 30 June 2015. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Grafton District Services Club Limited) in respect of such data, including any errors of omissions therein however caused.







ABN 90 001 041 327




audit.







ABN 90 001 041 327




audit.



DISCLAIMERTO THE MEMBERS OF


ABN 90 001 041 327





ABN 90 001 041 327




audit.





DISCLAIMER


ABN 90 001 041 327

The additional financial data presented on page 27 is in accordance with the books and records of the company which have been subjected to the auditing procedures applied in our statutory audit of the company for the financial year ended 30 June 2015. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Grafton District Services Club Limited) in respect of such data, including any errors of omissions therein however caused.




40

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 2015

2015 2014$ $

Income

Net surplus from trading:

Bar surplus 544,171 470,438Catering surplus 94,034 66,431Poker machine surplus 3,744,260 3,768,377TAB and Keno surplus 59,928 50,474Butcher shop surplus 102,123 78,491

4,544,516 4,434,211

Other income

Bowls playing fees 33,854 33,992Commission received 65,736 48,865Golf playing fees 47,034 59,002Interest received 7,385 14,567Rental income 47,292 33,852Sporting fees and facility hire 58,561 48,102Subscriptions 89,000 100,500Sundry income 16,647 5,259Subsidy 2,500 -

368,009 344,139

Total income 4,912,525 4,778,350

Operating expenses (3,639,310) (3,760,416)

Surplus before return to members 1,273,215 1,017,934

Returns to members and donationsCourtesy bus expenses 38,843 19,049Dinner tickets and badge draw 210,755 158,235Donations 17,156 16,814Entertainment 89,769 101,325Family assistance payments 14,400 14,200Loyalty Expenses 30,534 -Patrons amenities 133,656 137,020Refreshments, competition subsidies and trophies 455,501 461,194Sky Channel and Austar 36,239 55,035Subsidies sporting bodies 65,656 44,816

1,092,509 1,007,688

Surplus from ordinary activities 180,706 10,246

Surplus on disposal of property, plant and equipment 43,886 59,253

Surplus before income tax expense 224,592 69,499


PROFIT AND LOSS STATEMENTFOR THE YEAR ENDED 30 JUNE 2015

This statement is to be read in conjunction with the attached disclaimer.Page 27

This statement is to be read in conjunction with the attached disclaimer.

2015$

2014$NOTE


41

2015 2014$ $

Income

Net surplus from trading:

Bar surplus 544,171 470,438Catering surplus 94,034 66,431Poker machine surplus 3,744,260 3,768,377TAB and Keno surplus 59,928 50,474Butcher shop surplus 102,123 78,491

4,544,516 4,434,211

Other income

Bowls playing fees 33,854 33,992Commission received 65,736 48,865Golf playing fees 47,034 59,002Interest received 7,385 14,567Rental income 47,292 33,852Sporting fees and facility hire 58,561 48,102Subscriptions 89,000 100,500Sundry income 16,647 5,259Subsidy 2,500 -

368,009 344,139

Total income 4,912,525 4,778,350

Operating expenses (3,639,310) (3,760,416)

Surplus before return to members 1,273,215 1,017,934

Returns to members and donationsCourtesy bus expenses 38,843 19,049Dinner tickets and badge draw 210,755 158,235Donations 17,156 16,814Entertainment 89,769 101,325Family assistance payments 14,400 14,200Loyalty Expenses 30,534 -Patrons amenities 133,656 137,020Refreshments, competition subsidies and trophies 455,501 461,194Sky Channel and Austar 36,239 55,035Subsidies sporting bodies 65,656 44,816

1,092,509 1,007,688

Surplus from ordinary activities 180,706 10,246

Surplus on disposal of property, plant and equipment 43,886 59,253

Surplus before income tax expense 224,592 69,499


PROFIT AND LOSS STATEMENTFOR THE YEAR ENDED 30 JUNE 2015

This statement is to be read in conjunction with the attached disclaimer.Page 27

DECEASED MEMBERS 2014-2015

ALFORD JOSEPHINE

ALLISON LESLIE

ARNOTT NORMA

BALDERSTON RAYMOND

BALDERSTON GREGORY

BERRY MAVIS

BIBBY VIC

BLANCH JOHN

BOYD DELORES

BREE CATHERINE

BROWN VALERIE

BROWN LEXIE

BURNS ROBERT

BURRIS PETER

BUSHELL PATRICK

BUTCHER WARREN

CAIRNS DOREEN

CAMPBELL RONALD

CAMPBELL MELVA

CARR DONALD

CLARKE LANCE

CLOVER RODNEY

COLLINS PATRICIA

CONNOR HAROLD

COOPER VALDA

COWAN ATHOL

COWAN JOAN

COX WESLEY

CROMPTON ALLAN

CRONIN THOMAS

CROPPER VIDA

CROWE MARGARET

DELARUE GORDON

DONNELLY KATHLEEN

ELLEM LEWIS

FINNERTY STEPHEN

FRAME KATHLEEN

FULLER ROBERT

GAM FAY

GORMAN ROSS

GROVER JAMES

HAWKEN KELVEN

HEINZ NORM

JEITZ PAMELA

JOHNSON DENNIS

JONES IAN

KATON SANDRA

KELLY PATRICK

KIRBY GLAVES

LUMSDEN JOYCE

MACKIE DONALD

MARR WILLIAM

MARSH SIDNEY

MARSH ARTHUR

MCINNES CHARLES

MCKEE RAYMOND

MCLENNAN BRUCE

MEARNS HAROLD

MEERS HAZEL

MEREDITH KEVIN

MOIR DOUGLAS

MORRISSEY FRANCIS

MURRAY ALAN

NAGELE FERDINAND

NAYLOR MARGE

O’CONNOR RONALD

O’GRADY FAY

O’HARA MERVYN

OWEN BEVERLEY

PARDOE PAMELA

PARKER MARGARET

PARTRIDGE EVELYN (GRACE)

PILGRIM STUART

POORE CHRISTOPHER

PRESTON ANNE MAREE

RADCLIFFE ALWYN

REDIGER DULCIE

REGAN NOEL

REILLY LESLIE

ROGAN TERESE

SANNE GRAHAM

SCOPE KEN

SELLER ROMA

SHARPE JOHN

SOLOMON AGNES

SPENCER BEVERLEY

STEPHENSON GREGORY

STEVENSON EWAN

SUTHERLAND DOUGLAS

TIMBS EVELINE

TOLHURST BARRY

TOSHACK MARIE

WALLS DENNIS

WALTERS BETTY

WANT WALTER

WATKINS NOEL

WELLER ROSEMARIE (JEAN)

WHITE JUNE

WILKS JUNE

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