TAMWORTH GOLF CLUB LIMITED · TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 Tamworth Golf Club Limited Forty Seventh Annual Report And Financial Statements 2017 Page 4 of 45 hief

TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 Tamworth Golf Club Limited Forty Seventh Annual Report And Financial Statements 2017

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TAMWORTH GOLF CLUB LIMITED

FORTY SEVENTH ANNUAL REPORT AND FINANCIAL STATEMENTS 2017 OFFICE BEARERS AS AT 31/12/17

PRESIDENT: Robert DAVIS VICE PRESIDENT: Jenny TAYLOR

CAPTAIN: Ken MUNDY VICE CAPTAIN: Dan DALY

TREASURER: Ben LOCKWOOD LADIES GOLF CONVENOR: Pat CLARK

COMMITTEE

Peta JOHNSON, Saul BOURKE

NOTICE OF MEETING Notice is hereby given that the Forty Seventh Annual General Meeting of Tamworth Golf Club Limited will be held

at the Clubhouse, Mahony Avenue Tamworth, on Tuesday the 8th May 2018 at 7pm

BUSINESS

1. To confirm the minutes of the last Annual General Meeting.

2. To adopt the Financial Reports & Audited Financial Statements of Tamworth Golf Club Limited for the year ended 31st December, 2017.

3. To receive and adopt the Committee Reports.

4. To elect the office-bearers for the ensuing year.

Ken Mundy was elected at the 2015 AGM to the captains position and as such must resign at this AGM.

Ben Lockwood was elected at the 2016 AGM to serve the remaining 2 year term as Treasurer and as such must resign at this AGM. Pat Clark was elected at the 2015 AGM to the Lady Golf Convenors position and as such must resign at this AGM. Craig Wilson was elected at the 2017 AGM to the Directors position, he resigned in November and as such that position is vacant. Dan Daly was elected at the 2017 AGM to the Vice Captains position, he resigned in March 2018 and as such that position becomes vacant. As a consequence the positions to be filled at this AGM are;

Captain 3 year term Treasurer 3 year term Lady Golf Convenor 3 year term Vice Captain 2 year term Director 1 year term


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Nominations open on Tuesday 10th April 2018 at 6pm and close on Tuesday 1st May 2018 at 6pm.

5. To transact any other business that may be brought forward in accordance with the Articles of Association. 5.1 Matters of which due notice has been given;

5.2 Committee expenses for the ensuing year 2018. Passing this resolution annually is a requirement of

the Registered Clubs Act.

6. Note, as an Ordinary Resolution a simple majority of those members present at the meeting and eligible to vote is required.

7. General Business

8. Meeting Closed Dated 22nd March 2018 By direction of the Board

……………………………………………….. Andrew Graham Chief Executive Officer


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NOTES TO MEMBERS REGARDING THE ORDINARY RESOLUTIONS

A. That the members hereby approve and agree to expenditure by the Club, until the Annual General Meeting

in 2018, for the following:

i. The reasonable costs of Directors attending seminars, lectures, and other educational activities as

determined by the Board from time to time;

ii. The reasonable cost of meals and beverages for each Director before or after a Board or Committee

meeting on the day of that meeting when such meeting coincides with a normal meal time;

iii. The reasonable costs (including travel and accommodation expenses) of Directors attending meetings,

conferences and trade shows conducted by Clubs NSW, the Club Managers Association, Golf Australia,

Golf NSW, CNDGA and N&NWDLGA and other such conferences and trade shows as determined by

the Board from time to time;

iv. The reasonable costs associated with the entertainment of special guests of the club and/or other

promotional activities, either within the club or elsewhere, as approved by the Board from time to

time.

B. The members acknowledge that the benefits in paragraph (A) are not available for members generally but

are only for those who are Directors of the Club.

* Parts (i) and (iii) of the Ordinary Resolution is to have the members in General Meeting approve expenditure by the Club for Directors to attend seminars, lectures, trade displays and other similar events to be kept abreast of current trends and developments which may have a significant bearing on the club. * Part (ii) of the Ordinary Resolution is to have the members in General Meeting approve expenditure by the Club for each of the Directors to consume a meal and refreshments before or after Board/Committee meetings when that meeting corresponds with a normal meal time. * Part (iv) of the Ordinary Resolution is to have the members in General Meeting approve expenditure by the Club for the entertainment of sponsors and special guests, within the Club or elsewhere, for the positive promotion of Tamworth Golf Club. * The Ordinary Resolution must be passed as a whole and cannot be amended from motions from the floor of the meeting. * To be passed the Ordinary Resolution must receive votes in its favour from not less than a simple majority of those members, who being entitled to do so, vote in person at the meeting. * For the purposes of the Registered Clubs Act the Directors support and recommend that the Ordinary Resolution put forward be adopted by the members.


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Chief Executive Officer Report It is with great pleasure I write my third CEO’s report. This year was a tale of two halves, the first half of the year was very challenging with revenue down across the board and with ever increasing expenses, it was a difficult period for trading. With a lot of work from all of the staff we saw the results start to turn around in June and this gained momentum through the end of the year finishing with a profit of $49,886. Whilst this was a little under budget it is still a good result for a challenging year. The club made a major investment for a club our size in late 2016 of 10 new gaming licenses, 10 new machines and a new gaming management system. These were fully commissioned in mid January, whilst our gaming turnover was up significantly we were unable to keep our statistical profit which saw the gaming result a little lower than last year however we should see this come back in 2018 which has started off very strong. In 2017 we spent a significant amount on capital throughout the club, sadly it was not on shiny new mowers or new gaming machines that will make us money however most of this it was well over due. Ben will cover the specifics in his Treasurers report. The board chose not to continue its tee upgrade this year despite planning to do so, this was due to the slow start to the year and we thought it prudent to keep our cash reserves for operations rather than commit to a $20-30,000 project that could possibly place us under financial pressure. We did however complete the small six hole course on the practice fairway which can be used as a transitional course for the kids to go from clinics to the full course. The main project we undertook this year was the retro fit of the electronics on the sprinkler system, Steve and the boys have done a tremendous job of keeping this going over the years by sourcing old parts to keep it operating but last year we had exhausted the supply of parts and as such we had to undertake the project which was commissioned in August not without a few hiccups. The board have also approved an upgrade of our well on the Peel River which should see us a little closer to securing the appropriate water infrastructure for the course into the future. This year we see the changing of the guard in the pro shop with Scott and Tiffany deciding after 20 years in the golf industry and 12 as head professional at Tamworth Golf Club it was time to head on to bigger and better things. Scott will be finishing up on the 3rd June after 12 great years as head professional and we wish both Scott and Tiffany all the best in the future. After an exhaustive recruitment process to find Scott’s replacement it is also my pleasure to announce that Brock Sampson will be the new head professional starting his tenure on the 4th June 2018 I am sure you all will join me in congratulating Brock on his new appointment and wishing him all the best when he takes over. Overall it has been a pleasing year for the club and we have continued the investment into the club and its facilities. I would be remiss if I didn’t thank some people as well, firstly the volunteers they all do a fabulous job for the club and without these people both men and ladies a club like ours would struggle to survive. I would also like to thank the sub committees Paul McDougal and his vets committee as well as Lynn Collier and her Ladies committee for the tireless work you all put in. The Board of Directors deserve a special recognition for the work they put in behind the scenes the club just simply wouldn’t run as well without them. Last but certainly not least I would like to thank my team for the great job you all do, it is a pleasure to come to work and help you provide a great environment for our members and their guests to socialise. Andrew Graham CEO


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President’s Report It is my great pleasure to present the Presidents report. I would like to thank the directors, members, staff and CEO, Andrew Graham, for your support throughout the year. Once again, congratulations to CEO Andrew Graham for your efforts in managing our great club. It’s appreciated by all. The club had another good year financially with a Nett Profit of $49,886. This was down on previous years, mainly due to the slow gaming performance until May, then it started to pick up. The View Restaurant is going well, with some exciting things planned. We had capital plans, however due to a slow start to the year these were put on hold. Main expenses were:

- Replacement of electronics in sprinkler system $112,715.00

- IT Infrastructure: Cash Machine $55,392.35

- Course Improvements: Cart Paths, Mini Course (for kids) practice area $39,852.77

I would like to thank the Directors, especially Vice President Jenny Taylor, Captain Ken Mundy and Vice-Captain Dan Daly for your efforts throughout the year. Thanks to the staff: Mel in the office and marketing, Kira in the front office, the Accounts staff, the bar and View staff, Steve and the boys out on the course and Scott, Tiffany and staff in the Pro Shop for your outstanding efforts throughout 2017. Once again, thanks to the wonderful members and visitors for supporting our Club throughout the year. Thank you to the wonderful volunteers for your fantastic efforts throughout the year. Steve and staff really appreciate your assistance out on the course, especially cleaning the roughs around trees, emptying bins and the construction of cart paths, etc. Also, thank you to the volunteers who look after the gardens and surrounds of the club house, repairs and painting inside and outside of the club. Your fantastic efforts are appreciated by all. Thanks to the Lady Golfers and Tamworth Veteran Golfers for your contributions toward the cart paths. To our many sponsors, thank you for your magnificent support of competitions and Club activities throughout 2017. Your support is appreciated by all. I would like to thank all the community and business groups that meet at the club, for your ongoing support. I would like to thank all the Twilight Players for another fantastic year. Members, we still need your ongoing support throughout 2018 to keep our wonderful club progressing in the right direction. Good dining, golfing and socialising in 2018. President Rob Davis.


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Finance Sub-Committee Report

It is my pleasure to report to you that 2017 has been another profitable year for the Tamworth Golf Club recording a Net Profit of $49,886. While performance was mixed across the clubs operations an improvement was observed through the second half of the year taking total revenue to $3,774,221. This was a slight drop on 2016 ($3,804,486). An overview of full year revenues on major revenues lines is tabled below:

2014 2015 2016 2017 Difference

(%)

Golf Revenues

Course Income $642,215 $669,560 $656,496 $683,178 ▲ 4.1%

Member Subscriptions $388,234 $389,837 $378,483 $377,038 ▼ 0.4%

Beverage Sales

Total Beverages $916,244 $920,998 $1,039,624 $1,023,640 ▼-1.5%

COGS - Beverage 39.24% 38.92% 37.75% 36.77% ▼-3.0%

Food Sales

Total Food Sales $912,784 $1,018,525 $1,157,968 $1,164,203 ▲ 0.5%

COGS - Food 40.92% 39.96% 43.32% 40.18% ▼-7.2%

Gaming $333,099 $353,942 $465,042 $444,021 ▼ -4.5%

Capital Expenditure $148,906 $462,902 $1,026,005 $222,968 ▼ -74.3%

Debt $1,642,982 $1,683,834 $1,959,762 $2,045,582 ▲4.4%

Golf As compared to the drop in golf course revenues in 2016, a 4.1% rise to $683,178 in 2017 was the best result in 5 years. This is a credit to the strong support of playing members, our growing base of twilight and social golfers, and the presentation of the course by our committed grounds staff. Playing Membership revenue was again steady, though I’m sure we’d all agree that increasing our member base for the longevity of our great facilities is a key concern. Your board continues to pursue initiatives in this key objective, extending on the new membership categories introduced in 2016. We are moving further with the times and being accommodative of these participants and our existing members with the introduction of 9 hole events in 2018. Clubhouse Operations Following strong growth in our Food and Beverage operations, 2017 saw our first dip in total sales revenue of $2,187,843. In an extremely competitive marketplace, focus remains on providing a quality product to our members and guests while ensuring cost pressures are maintained in check. To this point it was pleasing that overall gross profit in Food and Beverages held firm.


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The View The transformation of the Café and Restaurant business has gone from strength to strength in recent years however much of the transition to broader hours is complete. This is reflected in the sales reaching a strong but now sustained level. As we now work on increasing the utilisation of our facility to further lift revenues (as measured by total Food sales of $1,164,203 in 2017) a clear focus remains on quality of our product and cost of doing business. Marketing will play a role and it was pleasing to see the great number of new faces introduced to our club via the club’s promotion in which we gave away a new car. Gaming Gaming machine revenues retraced some of the 31% rise of 2016 to settle 4.5% lower in 2017, with the club achieving revenue of $444,021 in total gaming. As flagged in our prior reports, we have invested significantly in this area for the entertainment of members and guests. Expenses While our total expenses increased to a lesser degree than in previous years, the 6.33% increase on 2016 well exceeded growth in offsetting revenues. Our largest expense category, Employee Expenses comprised around half of this increase in total expenditure. Again, expanded hours in the view and statutory award increases during the period naturally added to the cost of operations. Maintenance continues to be an area of great expense and consistently runs at approximately half of depreciation, while at the very same time the board remains committed to ensuring other much needed investment is applied to areas of need. Capital Expenditure Capital expenditure, while in excess of depreciation, amounted to $222,968 in 2017. This is well below the previous few years during which a foundation has been established for strong profitability. Undoubtedly we will be required to repair or replace key infrastructure, such was the case with the irrigation controller units, however your board is committed to the forthcoming phase for the business that includes a strong focus on promotion of our great club, disciplined management of operational costs and efficiencies, and an aggressive period of debt reduction funded from cashflows. It is with great thanks to our members and guests that your board can continue to invest in our wonderful club, to improve the amenities, and therefore the enjoyment of your patronage. I would like to simply reiterate the words of our CEO and my fellow directors and join them in thanking you for your support. We remain committed to enhancing your experience each time you golf and socialize at our great club. Ben Lockwood Treasurer


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Lady Golf Convenor’s Report

It has been rewarding to be Lady Golf Convenor this year and see improvements around the course and clubhouse brought to fruition. Rob Davis as President, and Andrew Graham CEO of Tamworth Golf Club, with a proactive Board of Jenny, Ken, Ben, Dan, Peta, Saul, Craig and myself has been keen to add our ideas and expertise to enhance the Club’s position as a welcoming venue for golfers, social members and visitors alike. The ladies’ lounge, locker and rest rooms have been brightened with input from a dedicated cleaning group with President Lynne as leader. Quotes are now being sought to revamp the aged bathroom facilities to make a more modern welcoming area suited to cater for all patrons. Ladies have also rostered themselves on regular working bees to clean up within and outside the Club to continue to present it as a happy and inviting venue. We thank Scott for his expertise and professional support in assisting our beginner ladies to learn to play golf, and fitting, coaching and assisting all golfers on and off the course. Your contribution to the smooth running of our competitions is really appreciated. Scott and Tiffany will be missed but we wish them well in their new venture. Welcome to Brock Sampson on his appointment as our new professional. Congratulations Brock. We eagerly look forward to our journey with you in the future. The Beginner golfing group on Monday mornings is once again operating and we are eager to encourage more interested people to join their ranks. Thank you to Sue for her dedication to the role of mentor for the last few years as well as her assistants. We welcome Daphne and Lynne and their band of helpers to fulfil the role this year. All ladies graduate in their own time and progress to play competitively in Tuesday, Thursday and/or Saturday competitions or join the Vets for 9 holes on a Monday. Many thanks to Steve and the grounds staff for installing the new watering system and presenting the Course in a great state to the benefit of all our members and visitors regardless of the weather .Thank you to the wonderful volunteers who give so much of their time to make Tamworth Golf CLub such a wonderful venue. Additional cart paths, built by our wonderful volunteer men with Ken at the helm, have been welcomed and the ladies are most appreciative when we manage to experience wet weather. We are also enjoying the addition of new practice area greens with holes which are such a bonus for young golfers in learning and enjoying the challenge of golf on a reduced scale. Our lady golfers have particularly enjoyed the extended View hours, menu variations and pleasant staff. This has encouraged them to relax and share camaraderie with fellow golfers, friends and family over meals, coffee and snacks. The availability of the ramp and new children’s play area is of great benefit and appreciated by families. We are pleased to have Val Chorlton as our new Patroness for our Club. Lynne Collier will be busy as usual as President encouraging all lady members in their golfing pursuits and Head of House. Jenny Taylor as the new Lady Vice President, and Board Vice President, has been very busy. Stephanie King is our very organized Secretary with Jeanette Riordan her Assistant, Carey Larkworthy as Captain, has also been hard at work organizing our programme as we look forward to hosting the Treloar Cup, Two Day Tournament and Grant Harvey Specsavers competitions. These competitions encourage


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additional golfers from many outside Clubs to compete. Prue Done is our Handicap Manager and Jenny Butler is the Saturday liaison player. Maxine Crossley is Vets’ delegate and organizer of Monday Vet competitions. New ladies on Committee are Narelle Dunst and Evlyn Parnell. We wish them well and thank all our past and present lady Committee members for their contribution and dedication to making our golf experiences so wonderful. Thank you to all the Golf Club staff for your support and cheerful attention. Pat Clark Lady Golf Convenor

Match & Grounds Report

Ken Mundy, Dan Daly, Andrew Graham, Rob Davis, Jenny Taylor, Carey Larkworthy, Peta Johnston. I have much delight in presenting this report for our Club for 2017. A very busy year with approximately 46,000 rounds of golf, which showed a slight decrease compared to 2016. Our big improver was our Twilight Golf which for 2016/17 attracted 620 individual players’ registered (41 teams of 15) and all players were happy with the changes to our competition that allowed players to play on any day, therefore doing away with the Tuesday/Thursday concept. The commencement of 2016/2017 has seen a huge increase in numbers from 520 individual players in 2015/16. To Rob Davis and Scott Roworth and his team for getting players on the course, entering scores, keeping records, handicapping etc., a huge job and carried out without any problems. The Club’s Twilight sponsors Barnco Automotive and Rabbit Electrical who have both now been sponsoring this event for several years. Melissa Schwalbach & Kira Newton put together all the conditions attached to the Twilight and as usual carried out their duties in excellent fashion. I would like to pass on my thanks to the Match Committee for their outstanding support in running our golf events in conjunction with the Proshop staff. My thanks also go to the wonderful Proshop staff led by Scott, Tiffany, Brock, Nathan, & Tom Gill, who carry out their duties with a minimum of fuss. Also my thanks to Mel Schwalbach and Kira Newton for their excellent help in carrying out a myriad of tasks for me and I am forever grateful. Congratulations to our 2017 Club Champion Tom Gill, Tom is only 18 years of age and fully deserved his win. The Easter Cup was won by Logan Toms a visitor from Woolgoolga. Congratulations to Frank Henry on being our most improved player reducing his handicap from 32 to 24. We must pass on our thanks to our outstanding sponsors, who continue to assist our Club in providing excellent trophies for all of our events. I say without any reservation that our Club is very fortunate to have sponsors of this calibre, probably as good as anywhere in Australasia. Our main sponsors are: Lyons, Barnett & Kennedy - Presidents v Captains Village Pies - Winter Cup Brosie, Martin Barnett Match Shield Choices - Club Championships Barnes Family, Overlander Crew, Dome Financial & Priority Home Loans, Ruttley & Martin Families. These groups provide all sponsorship of our Hams Days.


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Lavell/Ruttley Shield Other Club Sponsors (Approx 100) We thank them all. GROUNDS Ken Mundy, Steve Hirst, Rob Davis, Andrew Graham &, Jenny Taylor. To Steve Hirst and his crew of Craig Dimmock, Wayne Magann, Andrew Belt & Michael McKenzie, Warren Richards our mechanic, we offer our appreciation for the wonderful way our course for each and every event and members are privileged to play on the course the way it is presented. Also during 2017, new cart paths have been constructed and our very able Volunteers, who have carried out all the preparatory work, a huge thank you. All of our members should be aware that all the concreting work has been carried out (free of charge) by Peter King Adam King & Rick Martin and for this our Board and our members are extremely grateful. The money for these projects have been provided by the Ladies and Veterans Committees and for this our Board is extremely grateful. A major project in regards to our watering system, which included an electronic upgrade at a cost of $120,000, which is now complete. All the green boxes scattered around the course are part of this upgrade. This will greatly enhance our watering for the future. Yours in golf Ken Mundy Club Captain


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Directors' Report The Directors have pleasure in presenting their Directors Report together with the Financial Report of Tamworth Golf Club Limited for the year ended 31st December 2017:- Directors The Directors of the company in office at the date of this report were as follows:

Name Qualification Board Exp. Special Responsibilities

DAVIS, Robert Truck Driver 27 Years President, Grounds, Match, House Ex-

Officio all other sub committees.

TAYLOR, Jenny Retired 6 Years Vice President, House Chair, Grounds

Match

LOCKWOOD, Ben Financial Advisor 6 years Treasurer, Finance Chair, Ex-Officio all

other sub committees.

MUNDY, Ken Retired 18 years Captain, Match, Greens

DALY, Daniel Manager 4 years Vice Captain, Match, Greens

CLARK, Pat Retired 8 years Ladies Golf Convenor, House & Marketing

JOHNSON, Peta Retired 2 Years Match, Greens, House

BURKE, Saul Mine Worker 2 Year Match & Greens

WILSON, Craig Executive 1 year Match

Directors Meetings The number of Directors' meetings held (including special meetings of Directors of the Company) and the number of meetings attended by each director of the Company during the (calendar) financial year 2016 are:

Name Meetings Held Meetings Attended

Mr R Davis 12 12

Mr B Lockwood 12 11

Mr K Mundy 12 11

Mrs P Clark 12 10

Mr D Daly 12 11

Mrs J Taylor 12 11

Mrs P Johnson 12 11

Mr S Burke 12 10

Mr Craig Wilson 6 3

For the period 1/1/17 to 31/12/17


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Principal Activities & Objectives The principal activities of the company during the financial year have been to provide a golf course of the highest possible standard and a clubhouse that encompasses restaurant, bars, poker machines, keno, TAB and function facilities for members and their guests and to promote the game of golf. There were no significant changes in the nature of those activities during the financial year.

Number of Members as at: 31/12/2017 31/12/2016

Playing - Men 680 701

Playing - Ladies 78 64

Associate - Men 42 50

Associate - Ladies 124 158

Student 10 12

Junior - Men 8 9

Junior - Ladies 0 1

Social - Men 898 969

Social - Ladies 396 488

Life - Men 3 3

Life - Ladies 0 0

Professional 8 8

Sub-Junior 0 21

Corporate 5 7

Total 2252 2491

Net Profit The Profit/Loss from ordinary activities of the company for the financial year was a profit of $49,886. Transfers to Reserves Material transfer to and from reserves or provisions were as follows:

31/12/2017

To Provision for Depreciation $201,260

To Long Service Leave Provision (Net) $12,280

To Annual Leave Provision (Net) ($30,618)

Dividends No dividends were paid to members as the company is precluded under the Articles of Association from paying dividends. Review of Club Operations Revenue derived from operations of the club for the year totalled $3,774,221 and expenditure amounted to $3,724,335. Depreciation for 2017 amounted to $201,261 and capital expenditure for the year amounted to $222,968. All figures stated in the review of club operations are net of GST and AIFRS adjustments.


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Number of Members 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 $1 each towards the outstanding obligations of the entity. As at 31st December 2017 the number of members was - 2,252 (2016 - 2,491). Derivatives & Other Financial Instruments The company has a strict credit policy for all customers trading on credit terms, and only deals with reputable banks. Financing facilities and operating cash flows are managed to ensure the company is not exposed to adverse liquidity risks. Environmental Regulations The Company’s operations are subject to various environmental regulations under both Commonwealth and State legislation. The Directors are not aware of any significant breaches during the year covered by this report. Options No options over issued shares or interests in the company were granted during or since the end of the financial year and there were no options outstanding at the date of this report. State of Affairs In the opinion of the Directors there were no significant changes in the State of Affairs of the Company that occurred during the financial year under review not otherwise disclosed in this report on the financial statement. Events Subsequent to Balance Date No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of these operations, or the state of affairs of the company in future financial years. Likely Developments In the opinion of the Directors it would prejudice the interests of the company to provide information additional to that reported in this Directors' Report relating to developments in the operations of the company and the expected results of those operations in the financial years subsequent to 31 December 2017. Directors' Benefits Since the end of the previous financial year no Director of the Company has received or become entitled to receive any benefit (other than a benefit included in the aggregate amount of remuneration received or due and receivable by Directors shown in the accounts) because of a contract made by the Company or a related corporation with a Director or with a firm of which a Director is a member, or with a company in which the Director has a substantial interest. Indemnification & Insurance of Director’s & Officers Insurance premiums have been provided for and paid by the Company during the year for current Directors' and Officers' liability insurance. The insurance is in respect of legal liability for damages and legal costs to a maximum of $2,000,000 arising from claims made by reasons of any omissions or acts (other than dishonesty) by them, whilst acting in their individual or collective capacity as directors or officers of the company. The premium paid amounts to $35,598 which includes which includes all our insurance.


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Auditors Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out elsewhere in this report. Rounding Amounts in this report have been rounded off to the nearest dollar. Signed in accordance with a resolution of the Board of Directors on behalf of the Directors; Dated at TAMWORTH on 22nd March 2018 …………………………………………………… …………………………………………………… Robert Davis Jenny Taylor President/Director Vice President


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Important Information For Club Members The Reporting period for Tamworth Golf Club Limited is 01/01/2017 to 31/12/2017 1. Important Notes 1.1 The Registered Clubs Act 1976 defines a TOP EXECUTIVE as being one of the five highest paid employees of the club at each separate premises of the club. 1.2 Club members may inspect the original of any disclosure or declaration made under Section 41C, 41D, 41E or 41F by making a written application to the Secretary. 2. Disclosure of Interests of Directors in Contracts with the Club - Section 41C 2.1 The Registered Clubs Act 1976 requires DIRECTORS who have a material personal interest in matters that relate to the affairs of the club to declare the interest at a board meeting AND the club to display the declaration on the club’s notice board. 2.2 A contract is any commercial arrangement whether written or not. 2.3 In the reporting period there was no occasion when a DIRECTOR reported a material personal interest in a matter relating to the club’s affairs: 3. Financial Interests in Hotels - Section 41D 3.1 In the reporting period there were no occasions when DIRECTORS reported a financial interest in a hotel in NSW. 3.2 In the reporting period there were no occasions when TOP EXECUTIVES reported a financial interest in a hotel in NSW. 4. Gifts to Directors and Staff - Section 41E and Section 41F 4.1 An affiliated body of the club includes subsidiary clubs, and anybody which the club made a grant to within the previous 12 months. 4.2 A gift includes money, hospitality, or discounts. 4.3 A gift valued at more than $500 must be disclosed; gifts from CONTRACTORS must be disclosed if they total more than $500 from an individual contractor in the reporting period. 4.4 Directors 4.4.1 In the reporting period there were no occasions when DIRECTORS of the club reported receiving gifts from AFFILIATED BODIES. 4.4.2 In the reporting period there were no occasions when DIRECTORS of the club reported receiving gifts from CONTRACTORS. 4.5 Top Executives and Employees 4.5.1 In the reporting period there were no occasions when TOP EXECUTIVES of the club reported receiving gifts from AFFILIATED BODIES. 4.5.2 In the reporting period there were no occasions when EMPLOYEES of the club reported receiving gifts from CONTRACTORS.


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4.6 Value of Gifts 4.6.1 The total value of all gifts that DIRECTORS and TOP EXECUTIVES received from AFFILIATED BODIES in the reporting period is $0.00.

4.6.2 The total value of all gifts that DIRECTORS and EMPLOYEES received from CONTRACTORS in the reporting period is $0.00.

5. Top Executives - S.41H (1)(b) 5.1 The number of club TOP EXECUTIVES whose total remuneration for the reporting period falls within each successive $10,000 band commencing at $100,000:

5.2 There was 1 TOP EXECUTIVE whose total remuneration for the reporting period exceeded $100,000

6. Overseas Travel - S.41H (1)(c) 6.1 In the reporting period the club incurred the following costs for the overseas travel of DIRECTORS and EMPLOYEES:

6.2 In the reporting period the club incurred no costs for the overseas travel of DIRECTORS and/or EMPLOYEES.

7. Loans to Staff - S.41H (1)(d) 7.1 The Registered clubs Act 1976 requires the club to report loans to EMPLOYEES of $1,000 or more.

7.2 In the reporting period, the club made no loans to EMPLOYEES.

8. Contracts approved by Board - S.41H (1)(e) 8.1 During the reporting period the Board approved no new contracts.

8.2 The Registered Clubs Act 1976 defines a Controlled Contract as being a club contract:

8.2.1 in which a DIRECTOR or TOP EXECUTIVE has a pecuniary interest, or

8.2.2 for provision of professional advice relating to the following, a.) significant change to management structure or governance of the club; b.) significant change to the financial management of the club; c.) disposal of land; and d.) the amalgamation of the club.

8.3 During the reporting period no controlled contracts were approved by the Board and forwarded to the Director of Liquor and Gaming, of which:

8.3.1 No such contracts related to contracts in which a DIRECTOR or TOP EXECUTIVE has a pecuniary interest.

8.3.2 No such contracts related to the provision of professional advice. These contracts fall into the following advice categories:

8.3.3 Significant change to the management structure or governance of the club.

8.3.4 Significant changes to the financial management of the club.

8.3.5 Disposal of club land. 8.3.6 Amalgamation of the club.


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9. Employees related to Directors and Top Executives - S.41H (1)(f) 9.1 A CLOSE RELATIVE is defined in section 41B of the Registered Clubs Act 1976 and includes the immediate family. 9.2 In the reporting period, the club did not employ any person who was a close relative of a DIRECTOR or TOP EXECUTIVE of the club. 10. Payments to Consultants - S.41H (1)(g) and (h) 10.1 During the reporting period there was no instance where the club engaged a consultant. 10.2 The total costs paid by the club to a consultant in the reporting period was $nil. 10.3 Which included the following instances when consultants were paid $30,000 or more: Nil consultants. 11. Details of Settlements paid by the Club - S.41H (1)(i) 11.1 In the reporting period the club made no legal settlements with either a director or club employee. Being: 11.1.1 Nil with a director of the club. 11.1.2 Nil with a club employee. 11.2 The total value of all legal settlements was $0.00. 11.3 The total legal costs paid by the club for such settlements was $0.00. 12. Legal Fees paid by the Club - S.41H (1)(j) 12.1 In the reporting period, there were no instances when the club paid legal fees for DIRECTORS and EMPLOYEES. This included: 12.1.1 Nil instances for DIRECTORS and 12.1.2 Nil instances for EMPLOYEES. 12.2 In the reporting period the club paid a total of $0.00 being for legal fees paid for DIRECTORS and EMPLOYEES. 13. Gaming Machine Profit - S.41H (1)(k) 13.1 Gaming machine profit and the gaming machine tax period are defined in the Gaming Machine Tax Act 2001. 13.2 In the most recent gaming machine tax period the total profit from gaming machines was $444,021. 14. Amount paid to Community Development - S.41H (1)(l) 14.1 Clubs earning in excess of $1,000,000 p.a. in gaming machine profit can apply part of such profit to community development and support. 14.2.1 In the reporting period the Club applied $0.00 to community development and support under the CDSE

scheme.


Page 18 of 45

Tamworth Golf Club Limited Financial Report For the period ended 31st December 2017 Contents Financial Report - Auditor’s independence declaration

- Independent auditors report to the members of Tamworth Golf Club Limited.

- Statement of Profit or Loss and other Comprehensive Income

- Statement of Financial Position

- Statement of Cash Flows

- Statement of Changes in Equity

- Notes to the financial statements

- Directors declaration

General Information The financial report covers Tamworth Golf Club Limited, a company Limited by Guarantee. The financial report is presented in Australian Dollars. The financial report consists of the financial statements, notes to the financial statements and the Director’s declaration. Tamworth Golf Club Limited, a company Limited by Guarantee, is incorporated and domiciled in Australia. Its registered office and principal place of business are; Registered Office Principal place of business Mahony Avenue Mahony Avenue Tamworth NSW 2340 Tamworth NSW 2340 A description of the nature of the company’s operations and its principal activities are included in the Directors’ report, which is not part of the financial report. The financial report was authorised for issue, in accordance with a resolution of directors at a Board of Directors meeting held on the 22nd of March, 2018. The directors have the power to amend and re-issue the financial report if considered appropriate.


Page 19 of 45

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 I declare that, to the best of my knowledge and belief during the year ended 31st December 2017 there have been: a. no contraventions of the auditor’s independence requirements as set out in the Corporations Act 2001 in relation

to the audit; and

b. no contraventions of any applicable code of professional conduct in relation to the audit.

MALVERN MATHEWS SMITH Michael J Smith (Partner) Registered Company Auditor 234 Marius Street TAMWORTH 2340 26th March 2018


Page 20 of 45

Independent Auditors Report to the Members of Tamworth Golf Club Limited

ABN 41 792 195 022

Report on the Financial Report Opinion We have audited the financial report of Tamworth Golf Club Limited (the company), which comprises the statement of financial position as at 31 December 2017, the statement of profit or loss and other 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. In our opinion, the accompanying financial report of Tamworth Golf Club Limited is in accordance with the Corporations Act 2001, including:

(i) Giving a true and fair view of the company’s financial position as at 31 December 2017 and of its

financial performance for the year then ended; and

(ii) Complying with Australian Accounting Standards – Reduced Disclosure Requirements and the

Corporations Regulations 2001.

Basis of Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which have been given to the directors of Tamworth Golf Club Limited, 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 opinion.


Page 21 of 45

Basis of Accounting Without modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the Director’s financial reporting responsibilities under the Corporations Act 2001 and the Company’s Constitution reporting requirements. As a result, the financial report may not be suitable for any other purpose.

Other Information Those charged with governance are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 31 December 2017, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation preclude public disclosure about the matter or when, in extremely rare circumstances, we determine that matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. We have no key audit matters to communicate to members in our report. In preparing the financial report the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.


Page 22 of 45

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or

error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is

sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the

effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the company’s ability to continue as a going concern. If

we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify

our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s

report. However, future events or conditions may cause the company to cease to continue as a going

concern.

• Evaluate the overall presentation, structure and content of the financial report, including the

disclosures, and whether the financial report represents the underlying transactions and events in a

manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including significant deficiencies in internal control that we identify during our audit.

MALVERN MATHEWS SMITH Michael J Smith (Partner) Registered Company Auditor (# 84901) 234 Marius Street TAMWORTH 2340 Dated this 26 March 2018


The accompanying notes form part of these accounts. These financial statements have been subject to audit and should be read in conjunction with the attached Audit Report.

Page 23 of 45

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017

Detail Note 2017 2016

REVENUE 2

Club House & Course 2,653,718 2,691,527

Members 1,060,660 1,041,719

Other Revenue 59,843 71,240

TOTAL SALES 3,774,221 3,804,486

EXPENDITURE 2

Cost of Goods Sold 844,197 894,105

Employee Expenses 1,609,771 1,536,696

Depreciation 1 (b) 201,261 198,676

Finance Costs 145,988 139,952

Administration Expenses 923,118 842,691

TOTAL EXPENSES 3,724,335 3,612,120

CURRENT YEAR SURPLUS BEFORE INCOME TAX 13 49,886 192,366

INCOME TAX EXPENSE 1 (k) 0 0

NET CURRENT YEAR SURPLUS 13 49,886 192,366



Page 24 of 45

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017

Detail Note 2017 2016 CURRENT ASSETS:-

Cash 3 89,455 185,381

Accounts Receivable & Other Debtors 4 252,539 53,334

Inventories on hand 5 70,890 61,944

Other 6 90,711 119,020

TOTAL CURRENT ASSETS 503,595 419,679 NON-CURRENT ASSETS:-

Property Plant & Equipment 7A 8,357,676 8,295,628

Other 7B 145,932 145,932

TOTAL NON-CURRENT ASSETS 8,503,608 8,441,560

TOTAL ASSETS 9,007,203 8,861,239

CURRENT LIABILITIES:-

Bank Overdraft 8B 234,868 0

Accounts Payable & Other Payables 8A 592,826 839,435

Loans 8B 1,158,493 1,108,552

Employee Provisions 9 142,957 161,295

TOTAL CURRENT LIABILITIES 2,129,144 2,109,282 NON-CURRENT LIABILITIES:-

Loans 8C 887,090 851,210

TOTAL NON-CURRENT LIABILITIES 887,090 851,210

TOTAL LIABILITIES 3,016,230 2,960,492

NET ASSETS:- 5,990,969 5,900,747

EQUITY:- Retained Surplus

13 1,643,554 1,593,671

Asset Revaluation Reserve 21 4,347,415 4,307,075

TOTAL EQUITY 5,990,969 5,900,746



Page 25 of 45

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017

Detail Note 2017 2016

Cash Flows from Operating Activities

Receipts from Clubhouse/Members 3,515,173 3,720,660 Payment to Suppliers & Employees (3,622,671) (3,061,974)

(107,498) 658,686 Other Revenue 59,843 60,637 Interest Paid (145,988) (139,952)

Net Cash Inflow from Operating Activities 12 (193,643) 579,371

Cash Flows from Investing Activities Payment for Property, Plant & Equipment (222,972) (1,026,005) Proceeds from Sale of Property, Plant & Equipment

0 63,021

Net Cash Inflow (Outflow) from Investing Activities (222,972) (962,984)

Cash Flows from Financing Activities Proceeds from borrowings 85,821 275,928 Transfers to Reserves

Net Cash Outflow from Financing Activities 85,824 275,928

Net Increase (Decrease) in Cash Held (330,794) (107,685) Cash at the beginning of the Financial Year 185,381 293,066

Net Cash (Borrowings) at the end of the Financial Year

(145,413) 185,381

Cash Comprises: Cash on Hand 3 24,480 55,543 Cash at Bank 3 64,975 Overdraft 8b (234,868) 129,838

(145,413) 185,381



Page 26 of 45

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017

Retained Surplus

Asset Revaluation Reserve

Total

Balance as at 1st January 2016 1,401,305 4,655,608 6,056,913

Surplus for year after Income Tax 192,366 0 192,366

Revaluation Adjustments 0 (348,533) (348,533)

Balance as at 31st December 2016 1,593,671 4,307,075 5,900,746

Surplus for year after Income Tax 49,886 0 49,886

Revaluation Adjustments 0 40,340 40,340

Balance as at 31st December 2017 1,643,557 4,347,415 5,990,972


These notes form part of the financial statements Page 27 of 45

Note 1 SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New, revised or amending Accounting Standards and Interpretations adopted The company has adopted all of the new, revised or amending Accounting Standards - reduced reporting requirements and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Any significant impact on the accounting policies of the company from the adoption of these Accounting Standards and Interpretations are disclosed below. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the company.

Basis of Preparation The financial report covers Tamworth Golf Club as an individual entity. Tamworth Golf Club is a company limited by guarantee, and is domiciled in Australia. The company is a not for profit entity for financial reporting purposes. The financial report is a Tier 2 general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards – reduced reporting requirements, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board. The directors have determined that the company is a reporting entity. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated. The financial report has been prepared on an accruals basis and is based on historical costs or 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. a) Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Poker Machine income, commissions and member fees are recognised in the period to which they are set. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST).



b) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revaluation amount of the asset. Plant and Equipment Plant and Equipment are measured on the cost or directors valuation basis less appropriate depreciation. The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Increases in the carrying amount arising on revaluation of Plant and Equipment and Land and Buildings are credited to the revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement. Each year the difference between depreciation based on the re-valued carrying amount of the asset charged to the income statement and depreciation based on the asset’s original cost is transferred from the revaluation reserve to retained earnings. Depreciation The depreciable amount of all fixed assets, excluding freehold land, is depreciated on a straight-line basis over their useful lives to the company commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate (Diminishing Value) Course Watering 2 - 5% Buildings 1 - 5% Course Improvements 2.5% Plant & Equipment 10% Poker Machines 7.55% Air-conditioning 7.5% Fixtures & Fittings 10% The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.



An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount/fair value. Gains and losses on disposals are determined by deducting sale proceeds from the carrying amount. These gains or losses are included in the income statement. When re-valued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. c) Intangibles Water Access Licence Water access licenses are recognised at cost of acquisition. Water access licences have an indefinite useful life and are carried at cost less any impairment losses. As water access licenses have an indefinite useful life they are tested for impairment annually, they have not been amortised. Carrying value is considered to be fair value, no impairment or revaluation adjustment required. Poker Machine Licences Poker machine licences have an indefinite life and are carried at cost less any impairment losses. The company has recorded the poker machine licences in the financial statements at a market value of $733,227 (2016: $733,227). Software Software is recorded at cost. It has a finite life and is carried at market valuation less any accumulated amortisation and impairment losses. Software has an estimated useful life of between one and three years. It is assessed annually for impairment. d) Financial Assets Recognition Financial assets are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management. Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise. Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method. Held to maturity Investments These investments have fixed maturities, and it is the company’s intention to hold these investments to maturity. Any held-to-maturity investments held by the company are stated at amortised cost using the effective interest rate method. Inventories Inventories consisting of liquor, food and sundry items are valued at Fair Value.



Accounts Receivable and Other Debtors Receivables and debtors include amounts for receivables from members and customers for goods sold in the ordinary course of business. Receivables to be collected within twelve months are classified as current assets. All other receivables are classified as non current assets. Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost after determining any impairments. (Provision for doubtful debts). e) Financial Liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Derivative Instruments Derivative instruments are measured at fair value. Gains and losses arising from changes in fair value are taken to the income statement unless they are designated as hedges. Fair Value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models. Impairment At each reporting date, the entity assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. f) Impairment of Assets At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and the value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement or revaluation reserve for non current assets. Impairment testing is performed annually for non-current assets and intangible assets with indefinite lives. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. g) Employee Benefits Provision is made for the company’s liability for employee benefits arising from service rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.



h) Provisions (Annual Leave and Long Service Leave) Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Movement in employee provisions are recognised in the income statement annually. i) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. j) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of these assets, until such time as the assets are substantially ready for their intended use of sale. All other borrowing costs written off are recognised in expenses in the period to which they relate. k) Taxation No provision for taxation has been made in the accounts since the company is currently exempt from incurring any income tax liability in terms of Section 50.45 of the Income Tax Assessment Act, 1997(as amended). l) Superannuation Contributions are made by the company to award based superannuation fund’s for all employees. All contributions are charged as expenses when incurred. The company has no legal obligations to cover any shortfall in the Fund’s obligations to provide benefits to employees on retirement. m) Repairs & Maintenance Maintenance, repair costs and minor capital replacement/renewals are charged as expenses as incurred. n) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a net basis. o) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.



p) Critical accounting estimates and judgements. The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Key Judgements – Estimation of useful lives of assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life of intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. – Impairment The company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. q) Going Concern The Company financial statements have been prepared on the going concern basis. r) Economic Dependence The Tamworth Golf Club is dependent on its members, their guests and visitors (residents outside a 5 kilometre radius) for the majority of its revenue to operate the business. At the date of this report the Board of Directors have no reason to believe these people will not continue to support the Tamworth Golf Club Ltd.



Note 2

Note 2017 2016 REVENUE 1(a) Food & Beverage 2,187,843 2,197,592 Poker Machines 444,021 465,041 Match Revenue 726,202 696,621 Membership 339,709 353,311 Other Income 76,446 91,921

TOTAL REVENUE AND OTHER INCOME 3,774,221 3,804,486

EXPENSES Interest Paid 102,197 79,623 Depreciation 201,261 198,676 Provision for Annual Leave (Net) 1 (g) (30,618) 20,047 Provision for LSL (Net) 1 (g) 12,280 4,375 Audit Fees 11 17,500 14,003

Note 3

CASH (CURRENT ASSET)

- Cash on Hand 24,480 55,543 - Cash at Bank 64,975 129,838

89,455 185,381

Note 4

ACCOUNTS RECEIVABLE & OTHER DEBTORS (CURRENT ASSET)

- Sundry Debtors 1 (a) 252,539 53,334

252,539 53,334

Note 5

INVENTORIES ON HAND (CURRENT ASSET)

1 (d)

- Beverage & Food 66,190 58,762 - Maintenance Supplies 4,700 3,182

70,890 61,944



Note 6

2017 2016 OTHER (CURRENT ASSET)

- Prepayments General 90,711 119,020

90,711 119,020

Note 7A PROPERTY, PLANT & EQUIPMENT 1(b) (NON-CURRENT ASSET)

Land 1,650,000 1,650,000

Buildings and improvements 3,344,981 3,401,515

Course Plant & Machinery 335,301 352,758

Club House Plant, Furniture & Fittings 374,423 359,217

Air Conditioning 26,581 21,239

Poker Machines 748,111 753,479

Poker Machine Licences 1(c) 733,227 733,227

Course Water System & Improvements 814,156 723,528

Course Improvements 221,816 187,212

TAB Equipment 17,925 19,917

Kitchen Equipment 91,155 93,536

TOTAL 8,357,676 8,295,628

Land and buildings are shown at their fair value based on regular valuations by external independent valuers, less subsequent depreciation for buildings. In periods when the freehold land and buildings are not subject to an independent valuation, the directors have conducted a review to ensure the carrying amount for the land and buildings is not materially different to the fair value. Increases in the carrying value arising on revaluation of land and buildings are recognised in other comprehensive statements of income and accumulated in the revaluation reserve in equity. Revaluation decreases offset previous increases of same classes of assets and shall be recognised under the heading of revaluation reserve. All other decreases are recognised in profit or loss. Any accumulated depreciation at the date of revaluation is credited against the gross carrying amount of the asset and the net amount is restated to the valued amount of the asset. Freehold land and buildings that have been shown at cost are valued and recognised at the fair value of the asset at each reporting date.



Note 7B 2017 2016 OTHER (NON-CURRENT ASSET) - Surface Water Licence 1(c) 145,932 145,932

Note 7C (i) Movement in Asset Values during the Year

Carrying Amount At Start Of Year

Additions Disposals Depreciation

Revaluation Adjustment / Impairment Loss

Carrying Amount At End Of Year

Land 1,650,000 0 0 0 0 1,650,000 Buildings and improvements 3,401,515 450 0 56,984 0 3,344,981

Course Plant & Machinery 352,758 763 0 18,220 0 335,301 Club House Plant, Furniture & Fittings 359,217 55,392 0 40,186 0 374,423

Air Conditioning 21,239 7,251 0 1,909 0 26,581

Kitchen Equipment 93,536 6,544 0 8,926 0 91,154

Poker Machines 753,479 0 0 45,708 40,340 748,111

Poker Machine Licences 733,227 0 0 0 0 733,227 Course Water System & Improvements 723,528 112,715 0 22,087 0 814,156

Course Improvements 187,212 39,853 0 5,249 0 221,816

TAB Equipment 19,917 0 0 1,992 0 17,925

TOTAL 8,295,628 222,968 0 201,261 40,340 8,357,676



Note 2017 2016

Note 8A

ACCOUNTS PAYABLE & OTHER PAYABLES (CURRENT LIABILITIES)

Sundry Creditors & Accrued Charges 408,628 602,479

Subscriptions In Advance 184,184 236,956

592,826 839,435

Note 8B

LOANS (CURRENT LIABILITIES)

- Bank Overdraft 234,868 0

- ECash machine loan 2,775 0

- Hire Purchase Loans 10 35,353 39,684

- Ebet Equipment Loan 10 43,647 48,000

- ANZ Commercial Bill & Business Loan 1,076,714 1,020,868

1,393,359 1,108,552

Note 8C

LOANS (NON-CURRENT LIABILITIES)

- Hire Purchase Loan 10 35,292 65,100

- Ebet Equipment Loan 10 48,586 88,030

ANZ Business Loan 803,212 698,080

887,090 851,210

The bank loan and overdraft are secured by registered first mortgage over freehold land & buildings and a floating charge over the company’s assets.

Note 9 EMPLOYEE BENEFITS (CURRENT LIABILITIES) 1(g)

- Long Service Leave 70,784 58,504

- Annual Leave 72,173 102,791

142,957 161,295

Note 10 CAPITAL COMMITMENTS

Hire Purchase & Lease Commitments

Payable not later than 12 months 79,000 87,684

Payable between 12 months to 5 years 83,878 153,130

Greater than 5 years 0 0

162,878 240,814

These liability commitments are secured by the underlying assets



Note 11 AUDITORS REMUNERATION Malvern Mathews Smith were the auditors of the Tamworth Golf Club Limited for the year.

2017 2016

Audit Fees 17,500 14,003

Other Services 0 0

17,500 14,003

Note 12 RECONCILIATION OF NET CASHFLOW FROM OPERATING PROFIT/LOSS AFTER TAX

Net Profit/Loss after Income Tax per Statement of Comprehensive Income

49,886 192,366

Depreciation 201,260 198,676

Net Loss (Gain) on Sale Non Current Assets 0 (10,603)

Change in Operating Assets and Liabilities

(Increase) Decrease in Prepayments 28,310 (12,585)

(Increase) Decrease in Inventories (8,946) (3,563)

(Increase) Decrease in Other Debtors (199,205) (13,274)

(Decrease) Increase in Subscriptions In Advance (52,767) (17,226)

(Decrease) Increase in Sundry Creditors (193,843) 221,158

(Decrease) Increase in Provision for Employee Entitlements

(18,338) 24,422

Net Cash Inflows/Outflows from Operating Activities (193,643) 579,371

Note 13 RETAINED SURPLUS

Retained Surplus – beginning of period 1,593,668 1,401,305

Net Current Year Surplus 49,886 192,363

Retained Surplus – end of period 1,643,554 1,593,668



Note 14 Financial Risk Management The company’s financial instruments consist mainly of deposits with banks, short term investments, receivables and payables, commercial bills and hire purchase agreements. 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 (refer to Table at 14c). Financial Risk Management Policies

The finance committee is responsible for monitoring and managing the company’s compliance with its risk management strategy and consists of senior board members. The finance committee’s overall risk management strategy is to assist the company in meeting its financial targets while minimising potential adverse effects on financial performance. Risk management policies are approved and reviewed by directors on a regular basis. These include credit risk policies and future cash flow requirements.

Specific Financial Risk Exposures and Management

The main risks the company is exposed to through its financial instruments are credit risk, liquidity and market risk relating to interest rate risk and other price risk. There have been no substantive changes in the types of risks the company is exposed to, how these risks arise, or the board’s objectives, policies and processes for managing or measuring the risks from the previous period.

a. Credit Risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss for the company. The company does not have any material credit risk exposure as its major source of revenue is from memberships, green fees and gaming machines. Some interest is received from fixed rate term deposits within the ANZ. Sufficient funds are retained in the working account to meet ongoing needs.

Credit Risk Exposures

The maximum exposure to credit risk is by class of recognised financial assets at the end of the reporting period and is equivalent to the carrying amount and classification of those financial assets (net of any provisions) as presented in the statement of financial position. Accounts receivable and other debtors that are neither past due nor impaired are considered to be of high credit quality. The company has no significant concentrations of credit risk exposure to any single counterparty or group of counterparties. Credit risk related to balances with banks and other financial institutions is managed by the directors in accordance with approved board policy. Such policy requires that surplus funds are only invested with counterparties with a Standard and Poor’s rating of at least AA-.

b. Liquidity Risk

Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise meeting its obligations in relation to financial liabilities. The company manages risk through the following mechanisms:

• preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities;

• maintaining a reputable credit profile;

• managing credit risk related to financial assets;

• only investing surplus cash with major financial institutions; and

• comparing the maturity profile of financial liabilities with realisation profile of financial assets.



The tables below reflect an undiscounted contractual maturity analysis for non-derivative financial liabilities. The company does not hold directly any derivative financial liabilities. Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial liabilities reflects the earliest contractual settlement dates. Financial Liability and Financial Asset Maturity Analysis:

Within 1 year 1 – 5 Years Over 5 Years Total

2017 2016 2017 2016 2017 2016 2017 2016

Financial Liabilities

Trade and Other Payables

(excludes subs in advance & provisions)

643,496 602,479 - - - - 643,496 602,479

Hire Purchase Loans 38,126 87,684 35,292 153,130 - - 73,418 240,814

Business Loans 167,457 - 851,798 698,080 - - 1,019,255 698,080

Commercial Bill 952,909 1,020,868 - - - - 952,909 1,020,868

Total Financial Liabilities

1,801,988 1,711,031 887,090 851,210 - - 2,689,078 2,562,241

Within 1 year 1 – 5 Years Over 5 Years Total

2017 2016 2017 2016 2017 2016 2017 2016

Financial Assets

Cash 89,455 185,381 - - - - 89,455 185,381

Other Debtors and Receivables

239,849 53,749 - - - - 239,849 53,749

Total Financial Assets 329,304 239,130 - - - - 329,304 239,130

The cash flows in the maturity analysis are not expected to occur significantly earlier than contractually disclosed above. c. Market Risk i Interest Rate Risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate instruments. The company is also exposed to earnings volatility on floating rate instruments. The financial instruments that expose the company to interest rate risk are limited to fixed interest securities and cash on hand. The company manages interest rate risk by ensuring, whenever possible, payables are paid within agreed credit terms. ii Other Price Risk The company does not have any financial instruments subject to price risk



Sensitivity Analysis The following table illustrates sensitivities to the company’s exposure to changes in interest rates. The table indicates the impact on how profit reported at the end of the reporting period would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables. Profit Equity Year Ended 31 December 2017 $ $ +/-0% in interest rates +/-0 +/-0 Year Ended 31 December 2016 +/-0% in interest rates +/-0 +/-0 No sensitivity analysis has been performed for foreign exchange risk, as the company has no exposure to currency risk. There have been no changes in any of the assumptions used to prepare the above sensitivity analysis from the prior year. Net Fair Values Fair Value Estimation The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the change in discount rates applied by the market since their initial recognition by the company. Most of these instruments, which are carried at amortised cost (ie accounts receivables) are to be held until maturity and therefore the net fair value figures calculated bear little relevance to the company.



Detail Weighted Average

Effective Rate %

Floating Interest Rate $

Maturing Within 0-5 Years $

Non-Interest Bearing $

Total $

2017 2016 2017 2016 2017 2016 2017 2016 2017 2016

Financial Assets

Cash & Cash Equivalents

- - - - 22,299 21,745 67,156 163,636 89,455 185,381

Receivables - - - - - - 252,539 53,334 252,539 53,334

Total Financial Assets

- - - - 22,299 21,745 319,695 216,970 341,994 238,715

Financial Liabilities

Bank Overdrafts

6.40 - 234,868 - - - - - 234,868 -

Bank Bills 6.05 4.52 - - 952,909 1,020,868 - - 952,909 1,020,868

ANZ Business Loan

4.60 4.60 927,019 698,080 927,019 698,080

Trade & Sundry

Payables - - - - - - 408,628 602,479 408,628 602,479

Hire Purchase Liabilities

6.2 6.2 - - 73,420 104,784 - - 73,420 104,784

EBet Equipment

Loan - - - - 92,234 136,030 - - 92,234 136,030

Total Financial Liabilities

234,868 0 2,045,582 1,959,762 408,628 602,479 2,689,078 2,562,241

Cash on hand, accounts receivable and other debtors, and accounts payable and other payables are short-term instruments in nature whose carrying amount is equivalent to fair value. Trade and other payables exclude amounts provided for annual leave and sick leave and subscriptions in advance, which are outside the scope of AASB 139. Note 15 Segment Reporting The company operates in one industry, the principal activity being that of a Licensed Golf Club. The company operates predominantly in one geographic area, this being Tamworth, NSW. Note 16 Events Subsequent to Balance Date No matter or circumstance has arisen since 31st December 2017 which could significantly affect or may significantly affect the company’s operations, the result of operations or the company’s state of affairs as at 31st December 2017 or future financial year.



Note 17 Related Party Transactions (a) Key Management Personnel 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) are considered key management personnel. No key management personnel receive compensation or remuneration. The names of each person holding the position of Director of Tamworth Golf Club Limited during the year were; R. Davis, B. Lockwood, K. Mundy, P. Clark, S Burke, D. Daley, P Johnson and J. Taylor. (b) Director’s Remuneration & Benefits

Other related parties include close family members of key management personnel, and entities that are controlled or jointly controlled by those key management personnel individually or collectively with their close family members. Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated. (c) Transactions

The company sold liquor and provided sports facilities to the directors during the year within a normal customer relationship and on terms and conditions no more favourable than those available to other members. (d) Loans to/from Related Parties

There were no loans to or from related parties during the course of the current or past period. (e) Receivable from / payable to Related Parties

There were no transactions with related parties during the current or past period. Note 18 Members Guarantee The company is incorporated under the Corporations Act 2001 and is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of one dollar ($1) each, towards meeting any outstanding obligations of the company. At 31st December 2017 the number of members was 2,252 (2016: 2,491)



Note 19 Contingent Liabilities The Directors are not aware of any contingent liabilities in existence which would materially affect the financial position or trading result of the company’s operations at the 31st December, 2017. Note 20 Capital Commitments for expenditure The company has no capital commitments for expenditure at 31st December, 2017. Note 21 Reserves (a) Revaluation Reserve The revaluation reserve records the revaluations on non-current assets. (b) Analysis of Revaluation Reserve

2017 2016 Balance of Revaluation Reserve at 1st Jan 2017 4,307,075 4,655,608 Movement in Revaluation Reserve 40,340 (348,533)

Balance of Revaluation Reserve at 31st Dec 2017 4,347,415 4,307,075

Note 22 Company Details The registered office of the company is; 1 Mahony Avenue Tamworth, NSW 2340 The principal place of business; 1 Mahony Avenue Tamworth, NSW 2340


DIRECTORS DECLARATION In the directors’ opinion;

• the attached financial statements and notes thereto comply with the Corporations Act 2001, the

Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting

requirements;

• the attached financial statements and notes thereto comply with International Financial Reporting

Standards as issued by the International Accounting Standards Board as described in note 1 to the financial

statements;

• the attached financial statements and notes thereto give a true and fair view of the company’s financial

position as at the 31st December 2017 and of its performance for the financial year ended on that date; and

• there are reasonable grounds to believe that the company will be able to pay it’s debts as and when they

become due and payable.

Signed in accordance with a resolution of Directors on the 22nd March 2018 made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors,



Documents

TAMWORTH GOLF CLUB LIMITED · TAMWORTH GOLF CLUB LIMITED ABN 41 792 195 022 Tamworth Golf Club Limited Forty Seventh Annual Report And Financial Statements 2017 Page 4 of 45 hief