SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS · SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS ABN: 47 001 067 081 DIRECTORS' REPORT Dated this 3rd October 2014

SOUTH TWEED BOWLS CLUB LTD

TRADING AS SOUTH TWEED SPORTS

ABN: 47 001 067 081

Financial Report For The Year Ended

30 June 2014

ABN: 47 001 067 081

Financial Report For The Year Ended

30 June 2014

CONTENTS Page

Directors' Report 1

Auditor's Independence Declaration 4

Income Statement 5

Statement of Comprehensive Income 6

Statement of Financial Position 7

Statement of Changes in Equity 8

Statement of Cash Flows 9

Notes to the Financial Statements 10

Directors' Declaration 21

Independent Audit Report 22

South Tweed Bowls Club Ltd trading as South Tweed

Sports

• Maintain high customer service by providing regular and up to date staff training

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• Maintain strong ties and support within our community via the relevant support of local charities and community organizations.

• Monthly Financial Reporting and Meetings using up to date accounting software and business tools.

• Comparison to Internal and Industry Financial Benchmarks to assess the outcomes of various strategic decisions.

The entity measures its performance (including any key performance indicators) by:

Board Member since 28/10/2002Qualifications and Experience

Key Performance Measures

The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are

used by the directors to assess the financial sustainability of the company and whether the company’s short-term and long-term

objectives are being achieved.

Short-term and Long-term Objectives

Chairman

Information on Directors

Principal Activities

The principal activity of the company during the financial year was:

• Provide for Members and Members Guests a social and sporting Club highlighting the promotion of lawn bowls, and to provide a

licensed club with all the usual facilities of a club catering for all age groups. The Club also endeavours to give the community a

significant proportion of the clubs profits back by improving the Club’s own amenities and continued support of various charities and

community organizations.

• Increase Membership numbers and attendance to ensure the Club’s Income levels continue to grow.

• Reinvest into our member’s facilities according to our patron’s changing needs.

• Improve and consolidate the financial performance and cash position of the Club, adhering to budget models, and making real

reductions in operating costs understanding that Revenue will fluctuate with market forces.

• Investigate alternatives for producing income from non-traditional sources.

• Review the Master Plan for the Club on a regular basis.

• Maximise advantages from any marketing opportunities they may arise

• Re-Investment so it contributes to our vision of making quality, affordable and accessible member’s facilities in line with market

trends and member expectations.

Charles Thygesen

Board Chairman, Ex-officio all Committees, Chairman Internal

Audit/Governance/Compliance Committee, Chairman

Remuneration Review Committee, Member Gaming Committee,

Chairman Finance Committee, Member Strategic Planning

Committee, Member of Constitution and By Laws Committee.

Special Responsibilities

SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS

ABN: 47 001 067 081

DIRECTORS' REPORT

Directors

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Kim Mitchell

Ben Bernotas

Noelene Tauris

The names of each person who has been a director during the year and to the date of this report are:

Your directors present this report on the company for the financial year ended 30 June 2014.

Charles Thygesen

Ronald Rendell

Russell Boyd

Hazel Ensbey

To achieve its stated objectives, the company has adopted the following strategies:

Strategies

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ABN: 47 001 067 081

DIRECTORS' REPORT

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Qualifications and Experience





Director

Member Finance Committee, Chairman of Food, Beverage and

Entertainment Committee, Member Internal Audit/Governance

Compliance Committee, Member Tournament Committee,

Member Strategic Planning Committee.

Board Member since 24/11/2011, Business Analyst, B.Comm,

BSc; Completed C.D.I Training - Director Foundation and

Management Collaboration, Finance for Club Boards,

Governance Orientation.

Board Member since 25/11/2007

Chairman Strategic Planning Committee, Member Finance

Committee, Member Tournament Committee, Member Building

and Maintenance Committee, Member Remuneration Review

Committee, Member Audit Governance/Compliance Committee.

Director

Deputy Chairman

No. eligible to attend No. attended

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13 13

Ben Bernotas

Noelene Tauris

Ronald Rendell

Russell Boyd

Hazel Ensbey

Directors' Meetings

Meetings of Directors

During the financial year, 13 meetings of directors were held. Attendances by each director were as follows:

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Kim Mitchell

Charles Thygesen

13 13

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Member Finance Committee, Chairperson Constitution and By

Laws Committee, Member Building and Maintenance Committee,

Member of Gaming Committee.

Director

Board Member since 20/6/2012, Club Management 30 years:

Completed C.D.I Training - Governance Orientation


Director

Board Member since 25/11/2012; Completed C.D.I. Training -

Finance for Club Boards, Director Foundation and Management

Collaboration.

Chairman Building/Maintenance Committee, Member Gaming

Committee, Member Strategic Planning Committee, Member of

Food, Beverage and Entertainment Committee.

Chairman Gaming Committee, Member of Food, Beverage and

Entertainment Committee, Member Constitution and By Laws

Committee.


Ronald Rendell

Noelene Tauris


Director

Board Member since 7/11/2010; Completed C.D.I Training-

Governance Orientation, Director Foundation and Management

Collaboration.


Russell Boyd

Member Constitution and By Laws Committee, Chairperson

Tournament Committee, Member of Food, Beverage and

Entertainment Committee, Member Gaming Committee.

Board Member since 29/11/2009; Completed all C.D.I. Training -

Finance for Club Boards, Governance Orientation, Director

Foundation and Management Collaboration.

Kim Mitchell



Hazel Ensbey

Ben Bernotas


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ABN: 47 001 067 081

DIRECTORS' REPORT

3rd October 2014Dated this

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up,

the constitution states that each member is required to contribute a maximum of $3 each towards meeting any outstanding

obligations of the company. At 30 June 2014, the total amount that members of the company are liable to contribute if the company

is wound up is $25,935 (2013: $27,927).

day of

The Directors consider the Club's defined premises and all of its facilities to be Core Property. The directors do not consider the

Club to have Non-Core Property.

(c) any other property declared, by resolution passed by a majority of the members present at a general meeting of the ordinary

members of the club, not to be core property of the Club.

Non-core property is defined as meaning any real property owned or occupied by the Club that is not core property.

Core – Non Core Property as required under Section 41J of The Registered Clubs Act

Section 41J of the Act defines core property as meaning any real property owned or occupied by the Club that comprises:-

(a) the defined premises of the club, or

(b) any facility provided by the club for use of its members and their guests’ or

Charles Thygesen

This directors’ report is signed in accordance with a resolution of the Board of Directors.

Director

Auditor’s Independence Declaration

The lead auditor’s independence declaration for the year ended 30 June 2014 has been received and can be found on page 4 of the

financial report.

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(i)

(ii)


ABN: 47 001 067 081

AUDITOR’S INDEPENDENCE DECLARATION UNDER S 307C OF

THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF SOUTH TWEED BOWLS CLUB LTD TRADING AS

SOUTH TWEED SPORTS

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2014 there have been no contraventions of:

the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

any applicable code of professional conduct in relation to the audit.

Watson & Fenton Chartered AccountantsName of Firm

Name of Partner

Date 30/09/2014

Barry Dunnett

Address 39 Wharf Street

Tweed Heads NSW 2485

4

Note 2014 2013

$ $

Revenue 2 8,107,080 7,996,004

Other income 2 20,277 154,709

Employee benefits expense 3(a) (2,568,142) (2,496,800)

Depreciation and amortisation expense 3(a) (504,146) (483,078)

Interest paid (90,970) (173,705)

Cost of sales 3(a) (1,248,093) (1,169,405)

Other expenses 3(b) (3,697,224) (3,783,088)

Profit before income tax 18,782 44,637

Income tax expense 1(j) - - Profit for the year 18,782 44,637

The accompanying notes form part of these financial statements.


ABN: 47 001 067 081

STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2014

5

Note 2014 2013

$ $

Profit for the year 18,782 44,637

Other comprehensive income for the year - -

Total comprehensive income for the year 18,782 44,637



ABN: 47 001 067 081

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014

6

Note 2014 2013

$ $

ASSETS

Current assets

Cash and cash equivalents 4 362,050 368,476

Trade and other receivables 5 13,267 47,307

Inventories 6 137,538 141,361

Other current assets 7 24,726 48,295

Total current assets 537,581 605,439

Non-current assets

Property, plant and equipment 8 9,345,048 9,467,788

Total non-current assets 9,345,048 9,467,788

TOTAL ASSETS 9,882,629 10,073,227

LIABILITIES

Current liabilities

Trade and other payables 9 753,770 663,720

Borrowings 10 35,518 39,472

Provisions 11 453,098 459,861

Total current liabilities 1,242,386 1,163,053

Non-current liabilities

Trade and other payables 9 33,272 -

Borrowings 10 1,406,282 1,741,800

Provisions 11 41,876 28,342

Total non-current liabilities 1,481,430 1,770,142

TOTAL LIABILITIES 2,723,816 2,933,195

NET ASSETS 7,158,813 7,140,032

EQUITY

Retained earnings 7,158,813 7,140,032

TOTAL EQUITY 7,158,813 7,140,032



ABN: 47 001 067 081

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

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Retained

EarningsTotal

$ $

7,095,394 7,095,394

44,637 44,637

44,637 44,637

7,140,031 7,140,031

7,140,031 7,140,031

18,782 18,782

18,782 18,782

7,158,813 7,158,813


Total comprehensive income attributable to the entity

Balance at 30 June 2014


ABN: 47 001 067 081

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014

Profit for the year

Profit for the year

Balance at 1 July 2012

Balance at 30 June 2013

Comprehensive Income

Comprehensive Income

Balance at 1 July 2013

Total comprehensive income attributable to the entity

8

Note 2014 2013

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from members and Club patrons 8,955,413 8,782,245

Payments to suppliers, employees and ATO (8,172,040) (8,151,895)

Interest received 1,775 32,550

Receipt of insurance claim 19,646 2,892

Interest paid (90,970) (173,705)

Net cash generated from operating activities 713,824 492,087

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment 4,088 151,000

Decrease in held to maturity investments (term deposits) - 635,805

Payment for property, plant and equipment (384,865) (180,698)

Net cash from/(used in) investing activities (380,777) 606,107

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of finance lease liabilities - (5,481)

Repayment of borrowings 10(b) (300,000) (3,082,000)

Repayment of hire purchase liabilities (39,472) (74,619)

Proceeds on borrowings 10(b) - 2,000,000

Net cash generated by/(used in) financing activities (339,472) (1,162,100)

Net increase in cash held (6,425) (63,906)

Cash on hand at beginning of financial year 368,475 432,382

Cash on hand at end of financial year 4 362,050 368,476



ABN: 47 001 067 081

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2014

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(a)

Gaming subsidies are recognised in the period receipted, which aligns with the timeframe the poker machines are patronised.

Donations and bequests are recognised as revenue when received.

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

the instrument.

Sponsorship revenue is recognised upon invoice to the sponsor; this amount is determined in accordance with the amount

pledged and the timing with which the agreed pledge will flow to the Company.

Revenue from promotional rebates are recognised in the period they are earned, per the negotiated contracts.

Revenue from raffles is derived from ticket sales and is recognised in the period the raffle is drawn.

Commission revenue derived from patronising the ATM, Keno and TAB facilities provided, are recognised in the period it is

earned.

Revenue from beverage sales is recognised when beverage is acquired by patrons.

Revenue from gaming is derived from poker machines and is recognised 'net' of payouts to players.

Revenue from green fees is recognised in the period the bowling green is used by playing patrons for such purposes. The

receipt of fees and playing of bowls usually occurs in the same timeframe.

Revenue from membership subscriptions are recognised upon receipt. However, those received in advance for future years are

deferred until those timeframes are reached and are recognised, in the meanwhile, as a liability in the statement of financial

position. Revenue from members subscriptions is aligned with the period the members utilise the facilities provided and paid

for.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Revenue from catering sales is recognised when food is acquired by patrons.

Consequently, the Company has also early adopted the following reduced disclosure (Tier 2) standards:

AASB 2011–2: Amendments to Australian Accounting Standards arising from the Trans-Tasman

Convergence Project – Reduced Disclosure Requirements which incorporates Tier 2 disclosure requirements for amendments

made to AASB 101: Presentation of Financial Statements and AASB 1054: Australian Additional Disclosures;

AASB 2012-1: Amendments to Australian Accounting Standards – Fair Value Measurement – Reduced Disclosure

Requirements which contains the Tier 2 disclosure requirements for AASB 13: Fair Value Measurement; and

AASB 2012–7: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements as it relates to

the full-disclosure (Tier 1) standards that are mandatorily applicable for not-for-profit entities for the year ending 31 December

2013.

AASB 2011-11: Amendments to AASB 119 (September 2011) arising from Reduced Disclosure Requirements which contains

the Tier 2 disclosure requirements for AASB 119: Employee Benefits (September 2011);

Accounting Policies

Revenue

Basis of Preparation

South Tweed Bowls Club Ltd trading as South Tweed Sports has elected to early adopt the Australian Accounting Standards –

Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010-

2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting

Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act

2001 . The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements

containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the

preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements were authorised for issue on 3 October 2014 by the directors of the company.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical

costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial

liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

Summary of Significant Accounting PoliciesNote 1


ABN: 47 001 067 081

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

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ABN: 47 001 067 081


(b)

(c)

Depreciation Rate

(d)

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are recognised as

expenses on a straight-line basis over the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the

lease term.

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

Land and improvements 0- 2.9%

Buildings 1.5 - 2.0%

Leased plant and equipment 27%

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

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are

recognised in profit or loss in the period in which they arise.

Inventories are measured at the lower of cost and current replacement cost.

Inventories acquired at no cost or for nominal consideration are measured at the current replacement cost as at the date of

acquisition.

The entity applies the cost model as its accounting policy to property, plant and equipment.

Freehold land is shown at cost.

Buildings are shown at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying

amount of buildings is greater than its estimated recoverable amount, the carrying amount is written down immediately to its

estimated recoverable amount and impairment losses recognised in profit and loss.

Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset (but not the legal

ownership) are transferred to the entity, are classified as finance leases.

Plant and equipment 5 - 33%

Finance leases are capitalised, recognising an asset and a liability equal to the present value of the minimum lease payments,

including any guaranteed residual values.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the entity will

obtain ownership of the asset. Lease payments are allocated between the reduction of the lease liability and the lease interest

expense for the period.

Class of Fixed Asset

Property, Plant and Equipment

Freehold Property

Inventories

Plant and Equipment

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any

accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated

recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment

losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A

formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(f) for details of

impairment).

Plant and equipment that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value of

the asset at the date it is acquired.

Depreciation

The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding freehold land, is

depreciated on a straight-line basis over the asset's useful life to the entity commencing from the time the asset is held ready

for use.

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

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ABN: 47 001 067 081


(e)

Impairment

Derecognition

(f)

(g)

Financial Instruments

Initial Recognition and Measurement

Employee Benefits

Provision is made for the Company’s obligation for short-term employee benefits. Short-term employee benefits are benefits

(other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting

period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee

benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Company’s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of

current trade and other payables in the statement of financial position.

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments,

and it is the company’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the

instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the

asset (i.e. trade date accounting is adopted).

Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to

another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with

the asset. Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The

difference between the carrying amount of the financial liability, which is extinguished or transferred to another party, and the

fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(iii) Financial liabilities

Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost.

Where the future economic benefits of the asset are not primarily dependent upon the asset’s ability to generate net cash

inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is

determined as the depreciated replacement cost of an asset.

Short-term employee benefits

Other long-term employee benefits

Company classifies employees’ long service leave and annual leave entitlements as other long-term employee benefits as they

are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees

render the related service. Provision is made for the Company’s obligation for other long-term employee benefits, which is

measured at the present value of the expected future payments to be made to employees. Expected future payments

incorporate anticipated future wage and salary levels, durations of service and employee departures and are discounted at

rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates

approximating the terms of the obligations. Upon the remeasurement of obligations for other long-term employee benefits, the

net change in the obligation is recognised in profit or loss classified under employee benefit expense.

Classification and Subsequent Measurement

Financial instruments are subsequently measured at fair value (refer to Note 1(q)), amortised cost using the effective interest

method, or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances,

valuation techniques are adopted.

Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair

value through profit or loss’ in which case transaction costs are recognised immediately as expenses in profit or loss.

Impairment of Assets

At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such

an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the

higher of the asset’s fair value less costs to sell and value in use, to the asset’s carrying amount. Any excess of the asset’s

carrying amount over its recoverable amount is recognised immediately in profit or loss.

At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been

impaired.

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active

market and are subsequently measured at amortised cost.

(ii) Held-to-maturity investments

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ABN: 47 001 067 081


(h) Cash and Cash Equivalents

(i) Goods and Services Tax (GST)

(j) Income Tax

(k) Intangibles

(l) Provisions

Linked Jackpots

(m) Comparative Figures

(n) Trade and Other Payables

Turbo Bonus Points

(o) Critical Accounting Estimates and Judgments

The provision for poker machine link jackpots represents the Company's estimated present obligation to members and visitors

in respect of poker machine payouts.

The provision is expected to be realised within 12 months of the reporting date.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities

which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers

or payments to suppliers.

The entity has self-assessed and has deemed itself as exempt from income tax under Div 50 of the Income Tax Assessment

Act 1997. Accordingly, no provision for income tax has been raised.

Defined contribution superannuation benefits

Retirement benefit obligations

All employees of the Company receive defined contribution superannuation entitlements, for which the Company pays the fixed

superannuation guarantee contribution (currently 9.25% of the employee’s average ordinary salary) to the employee’s

superannuation fund of choice. All contributions in respect of employees’ defined contribution entitlements are recognised as an

expense when they become payable. The Company’s obligation with respect to employees’ defined contribution entitlements is

limited to its obligation for any unpaid superannuation guarantee contributions at the end of the reporting period. All obligations

for unpaid superannuation guarantee contributions are measured at the (undiscounted) amounts expected to be paid when the

obligation is settled and are presented as current liabilities in the Company’s statement of financial position.

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 (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST

recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position.

Trade and other payables represent the liabilities for goods and services received by the company during the reporting period

that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally

paid within 30 days of recognition of the liability.

The directors evaluate estimates and judgments incorporated into the financial statements 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.

Software

Software is initially recognised at cost. It has a finite life and is carried at cost less any accumulated amortisation and

impairment losses. Software has an estimated useful life of between 1 and 3 years. It is assessed annually for impairment.

Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is

probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised

represent the best estimate of the amounts required to settle the obligation at the end of reporting period.

Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for

the current financial year.

Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments

with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in

current liabilities on the statement of financial position.

The Company’s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial

position, except where the Company does not have an unconditional right to defer settlement for at least twelve months after

the reporting date, in which case the obligations are presented as current liabilities.

The amount payable in respect of Turbo Bonus points represents the Company's estimated present obligation to members and

visitors.

The amount payable is expected to be realised within 12 months of the reporting date.

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ABN: 47 001 067 081


(p) Fringe benefits tax (FBT)

(q) Economic Dependence

2014 2013

Revenue Note $ $

Revenue from operating activities

— gaming 4,250,722 4,081,270

— catering 1,921,538 1,833,330

— beverage 1,372,134 1,272,853

— entertainment and promotions 213,561 326,165

— commission received 130,327 149,452

— bowls and tournaments 100,365 91,142

— rental 26,915 31,400

— 89,743 177,842

8,105,305 7,963,454

Other revenue

— 1,775 32,550

1,775 32,550

Total revenue 8,107,080 7,996,004

Other income

— 631 817

— 19,646 2,892

— 2(a) - 151,000

Total other income 20,277 154,709

8,127,357 8,150,713

(a)

2014 2013

$ $

(a)

Employee benefits expense:

—

2,568,142 2,496,800

— 205,824 253,269

Total employee benefits expense 2,773,966 2,750,069

employee benefits expense including contributions

to defined contribution superannuation funds

Depreciation and impairment considerations

Assessment of the useful life of buildings, land improvements, plant and machinery and their appropriate deprecation rates.

Also an assessment of the aforementioned for impairment.

The Board approved the disposal of gaming entitlements for which it made a net profit of $151,000. This had a material impact

on the results of the company for the 2013 financial year.

Long Service Leave Entitlements

Assessments are made on the probability of staff taking long service leave. This took into account history with the Club itself

and characterisation of the Club industry. Staff with four years services were assessed at 49%, seven years at 75% and beyond

that at 100%.

The entity self assesses its liability for fringe benefits tax on an annual basis.

interest received

Key Estimates

South Tweed Bowls Club Ltd trading as South Tweed Sports is dependent on the members and guests for the majority of its

revenue used to operate the business. At the date of this report the Board of Directors has no reason to believe the members

and guests will not continue to support South Tweed Bowls Club Ltd trading as South Tweed Sports.

Total revenue and other income

Expenses

profit/(loss) on sale of fixed assets

insurance claim refund

profit on sale of gaming entitlements

Note 3

Expenses

employment on-costs

other

Note 2 Revenue and Other Income

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ABN: 47 001 067 081


Depreciation and amortisation:

— 219,408 219,408

— 274,688 231,349

— 10,050 32,321

Total depreciation and amortisation 504,146 483,078

Directors' honorariums 25,000 28,083

— 587,563 555,231

— 660,530 614,174

1,248,093 1,169,405

(b)

— 1,085,530 1,145,242

— 804,539 866,178

— 895,820 859,467

— 361,056 309,359

— 205,824 253,269

— 119,041 109,510

— 89,846 108,888

— 54,805 43,824

— 10,772 26,442

— 23,431 24,982

— 31,387 20,586

— 15,173 15,341

3,697,224 3,783,088

Note 2014 2013

$ $

CURRENT

Cash at bank - unrestricted 362,050 368,476

15 362,050 368,476

Total cash and cash equivalents as stated in the cash flow statement 362,050 368,476

2014 2013

$ $

CURRENT

Other receivables 13,267 47,307

Total current trade and other receivables 15 13,267 47,307

2014 2013

$ $

CURRENT

At cost

122,013 133,007

15,525 8,354

137,538 141,361

gaming

repairs & maintenance

employee on costs

catering

beverage

finance costs

tournament costs

members amenities

administrative & overheads

catering

Cost of sales

Trade and Other Receivables

buildings

Inventories

Food & beverage stock

Note 4

leased assets and hire purchase assets

beverage

Bowls stock

entertainment & promotions

bowling costs

sub - club costs

Cash and Cash Equivalents

Other

plant and equipment

Note 6

Note 5

Total cash and cash equivalents as stated in the statement of

financial position

15


ABN: 47 001 067 081


2014 2013

$ $

Prepayments 24,726 48,295

24,726 48,295

2014 2013

$ $

LAND AND BUILDINGS

Freehold land:

— At cost 3,580,238 3,580,238

— (911,599) (871,422)

Total land 2,668,639 2,708,816

Buildings:

— 8,522,986 8,522,986

— (3,386,241) (3,207,011)

Total buildings 5,136,745 5,315,975

Total land and buildings 7,805,384 8,024,791

PLANT AND EQUIPMENT

Plant and equipment:

— 6,375,097 6,799,879

— (4,944,784) (5,527,952)

1,430,313 1,271,927

Leased and HP assets:

— 150,000 265,128

— (40,649) (94,058)

109,351 171,070

Total plant and equipment 1,539,664 1,442,997

Total property, plant and equipment 9,345,048 9,467,788

Movements in Carrying Amounts

Land &

improvements

$

Buildings

$

Plant and

Equipment

$

Leased &

HP Assets

$

Total

$

2,708,815 5,315,975 1,271,925 171,071 9,467,786

- - 384,865 - 384,865

- - (3,457) - (3,457)

- - 51,668 (51,668) -

(40,176) (179,230) (274,688) (10,052) (504,146)

2,668,639 5,136,745 1,430,313 109,351 9,345,048

At cost

Less accumulated depreciation

Balance at the beginning of the year

Additions at cost

Disposals

Transfer between categories

Depreciation expense

Carrying amount at the end of the year

At cost


At cost


Note 8 Property, Plant and Equipment

2014

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current

financial year:


Note 7 Other Current Assets

16


ABN: 47 001 067 081


2014 2013

$ $

CURRENT

Trade payables 207,383 282,927

Deferred income 77,948 99,066

Payables - gaming machines 151,116 -

106,177 98,653

115,696 103,618

95,450 79,456

753,770 663,720

NON-CURRENT

Deferred income 33,272 -

33,272 -

2014

$

2013

$

Note

Trade and other payables

— Total current 753,770 663,720

— Total non-current 33,272 -

787,042 663,720

Less deferred income (111,220) (99,066)

Financial liabilities as trade and other payables 15 675,822 564,654

2014 2013

$ $

CURRENT

35,518 39,472

35,518 39,472

NON-CURRENT

6,282 41,800

1,400,000 1,700,000

1,406,282 1,741,800

TOTAL BORROWINGS 15 1,441,800 1,781,272

Hire purchase liabilities are secured by the underlying HP assets.

(a)8 7,805,384 8,024,791

(b)

Freehold land and buildings

Terms

The loan is called a "Better Business Loan - variable rate".

The facility has a 'redraw' clause, which means the company can redraw funds up to the original $2,000,000 provided, during

the period of the loan.

Interest only is the minimum repayment required until 26 March 2016. The loan is due for settlement on this date. The interest

rate is variable.

The carrying amounts of non-current assets pledged as

Mortgage loan details

In the 2013 financial year a loan of $2,000,000 was provided by Commonwealth Bank Australia (CBA) to the company.

Amounts owing to Perpetual Investments Management Ltd were settled in that year.

Background

Hire purchase liabilities

Mortgage loan - CBA

GST payable

BorrowingsNote 10

Hire purchase liabilities

Note 9

Clearing accounts

Trade Payable and Other Payables

Other payables

Financial liabilities at amortised cost classified as trade

and other payables

17


ABN: 47 001 067 081


—

—

--

(c) Exposure of loan 2014 2013

$ $

— 1,400,000 1,700,000

1,400,000 1,700,000

CURRENT 2014 2013

Short-term Employee Benefits $ $

Opening balance at 1 July 2013 387,517 371,801

Additional provisions raised during year 188,130 178,746

Amounts used (149,173) (163,030)

Balance at 30 June 2014 426,474 387,517

26,624 72,344

453,098 459,861

NON-CURRENT

Long-term Employee Benefits

Opening balance at 1 July 2013 28,342 41,825

Additional provisions raised during year 13,534 -

Amounts used - (13,483)

Balance at 30 June 2014 41,876 28,342

2014 2013

Analysis of Employee Provisions $ $

453,098 459,861

41,876 28,342

494,974 488,203

The exposure of the loan to interest rate fluctuations are as follows:

Variable

Security

Excluding any property that does not relate in any way to the Registered Club business of the Grantor known as

South Tweed Sports (the Business) or used in any way in relation to the Business.

First Registered Mortgage by South Tweed Bowls Club Ltd over non-residential property situated at 4-8 Minjungbal Dr and

1 Altair Street Tweed Heads South NSW 2486

General Security Interest by South Tweed Bowls Club Ltd comprising:

First ranking charge over All Present and After Acquired Property

Linked Jackpot Liability

Provisions

Poker machine link jackpots is the current balance of available jackpots that accumulate from turnover play on poker machines.

These jackpots are returned to players by achieving the required combination for the link jackpot on the machine being played.

Provision for Linked Jackpot Liability

Note 11

Non-current

The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for

long service leave entitlements that have vested due to employees having completed the required period of service. Based on past

experience the company does not expect the full amount of annual leave or long service leave balances classified as current

liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the company

does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave

entitlement.

Current

Provision for Employee Benefits

Provision for employee benefits represents amounts accrued for annual leave and long service leave.

A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future

cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The

measurement and recognition criteria relating to employee benefits has been included in Note 1 of financial statements.

18


ABN: 47 001 067 081


(a) Hire Purchase Commitments

2014 2013

$ $

— 38,175 45,703

— 6,363 44,538

44,538 90,241

a. Key Management Personnel

2014 2013

$ $

Key Management Personnel Compensation 321,998 324,033

Note

2014

$

2013

$

Financial assets

Cash and cash equivalents 4 362,050 368,476

Trade and other receivables 5 13,267 47,307

Total financial assets 375,317 415,783

Financial liabilities

Financial liabilities at amortised cost

— trade and other payables 9 675,822 564,654

— borrowings 10 1,441,800 1,781,272

Total financial liabilities 2,117,622 2,345,926

The hire purchase commitment is in regards to the chiller.

Any person(s) having authority and responsibility for planning, directing and controlling the activities of the company, directly or

indirectly, including any director (whether executive or otherwise) is considered key management personnel.

Events After the Reporting Period

Note 14

Payable – minimum payments

not later than 12 months

Financial Risk Management

Note 13

The directors are not aware of any significant events since the end of the reporting period.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as detailed in the

accounting policies to these financial statements, are as follows:

The company’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments,

receivables and payables, and HP liabilities.

Capital and Leasing Commitments

Entity Details

Related Party Transactions

Note 12

Note 15

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

later than 12 months but not later than 5 years

Note 15

4 Minjungbal Drive

Tweed Heads South NSW 2486

4 Minjungbal Drive

Tweed Heads South NSW 2486

The registered office of the entity is:

South Tweed Bowls Club Ltd trading as South Tweed Sports

South Tweed Bowls Club Ltd trading as South Tweed Sports

The principal place of business is:

19


ABN: 47 001 067 081


The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the

constitution states that each member is required to contribute a maximum of $3 each towards meeting any outstandings and

obligations of the entity. At 30 June 2014 the number of members was 8,645.

Members' GuaranteeNote 16

20

1.

(a)

(b)

2. In the directors’ opinion there are reasonable grounds to believe that the entity will be able to pay its debts

as and when they become due and payable.

October 2014Dated this 3rd

Director

day of

Charles Thygesen


ABN: 47 001 067 081

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of South Tweed Bowls Club Ltd trading as South Tweed Sports,

the directors of the company declare that:

comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

give a true and fair view of the financial position of the company as at 30 June 2014 and its

performance for the year ended on that date.

The financial statements and notes, as set out on pages 5 to 20, are in accordance with the Corporations

Act 2001 and:

The directors have determined that the company is a reporting entity that does not have public accountability as

defined in AASB 1053: Application of Tiers of Australian Accounting Standards and that these general purpose

financial statements should be prepared in accordance with Australian Accounting Standards – Reduced

Disclosure Requirements.

21

(i)

(ii)

Matters Relating to the Electronic Publication of the Audited Financial Report

giving a true and fair view of the company's financial position as at 30 June 2014 and of its performance for the year

ended on that date; and

complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations

2001.

Other matters

This auditor’s report relates to the financial report of South Tweed Sports for the year ended 30 June 2014 included on South

Tweed Sports website. The Club's directors are responsible for the integrity of South Tweed Sports website. We have not been

engaged to report on the integrity of the South Tweed Sports website. The auditor’s report refers only to the subject matter

described above. It does not provide an opinion on any other information which may have been hyperlinked to/from these

statements. If users of the financial report are concerned with the inherent risks arising from publication on a website, they are

advised to refer to the hard copy of the audited financial report to confirm the information contained in this website version of the

financial report.

Report on the Financial Report


ABN: 47 001 067 081

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF


In our opinion, the financial report of South Tweed Bowls Club Ltd trading as South Tweed Sports is in accordance with

Corporations Act 2001, including:

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.

We have audited the accompanying financial report of South Tweed Bowls Club Ltd trading as South Tweed Sports, which

comprises the statement of financial position as at 30 June 2014, the statement of profit or loss, statement of comprehensive

income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of

significant accounting policies and other explanatory information and the directors’ declaration.

Opinion

Directors' Responsibility for the Financial Report

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 judgment, including the assessment of the risks of material misstatement of the

financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to

the company’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.

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 given to the directors of South Tweed Bowls

Club Ltd trading as South Tweed Sports, would be in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

22

Name of Firm Watson and Fenton Chartered Accountants

Auditor's signature:

Address:

Tweed Heads

NSW 2485

Dated this 6th day of October 2014

39 Wharf Street

Barry Dunnett

23

Documents

SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS · SOUTH TWEED BOWLS CLUB LTD TRADING AS SOUTH TWEED SPORTS ABN: 47 001 067 081 DIRECTORS' REPORT Dated this 3rd October 2014