KSCC 2018 Financial Report for Printer

KENDALL SERVICES AND CITIZENS CLUB LIMITED

(A Company limited by Guarantee)

ABN 43 001 058 153

ANNUAL FINANCIAL REPORT

FOR THE FINANCIAL YEAR ENDED 30 JUNE 2018

Presidents Report

Secretary Managers Report

Social Golf Club Report

Social Darts Club Report

Financial Statements

Kendall Services & Citizens Club Limited ABN 43 001 058 153

for the Year Ended 30 June 2018

PRESIDENT’S REPORT

A positive year although we didn’t achieve our aim to finish the year in a positive situation financially, the results were an improvement on the previous and resulted in a $15,884.00 deficit. A position we are reasonably comfortable with. We continue to trade well, we are debt free other than the loan we took to rebuild the Club which is now only $140,743.00 not a large amount for a small business our size.

Peter Hemingway joined us in November 2017 and has fitted in well with committee, staff and members; we wish him a long and successful stay with the Kendall Club.

Carol Hardy left us last October after a very successful two year stay with us, health reasons being her decision to leave. Carol’s time with us was a very eye opening experience, making us aware of the future possibilities available to our small Club. Her attitude was to please everyone which did extremely well.

There are only three Sub Clubs now, the Golfers who are having a strong following with some new faces, the Tuesday nights Social Darts who are also drawing a lot of new people and Wednesday night Bingo whose numbers stay steady.

On behalf of management, staff and directors we thank our Welfare Ladies for their continuing support with the very important job of taking care of the members families in their time of loss. I am sure everyone appreciates your input.

Thank you Bar Staff, your efforts in the period of changeover of managers, holiday breaks etc. have not gone unnoticed. Remember, look after the customer and they will look after you.

To the Directors thank you for your contribution, your roster responsibilities, monthly meeting (and the short notice meetings in between).

I take this opportunity to welcome Chris and staff in the “Fusions” Restaurant I hope we have a long and successful relationship.

Lastly our Members, without you we don’t have (need) a club, your continued presence is vital to our existence, invite your friends along to try the new catering and encourage them to become a member.

Bill Jones President

SECRETARY MANAGER’S REPORT

Dear Members,

I submit my first report as your Club’s Secretary Manager since taking up the role on 31st October 2017. To come to Kendall has been a great experience and a club that is unique in so many ways. After being in some larger clubs in recent times, it has been a rewarding experience to know many of the members by name and be actively involved in the club’s day to day trading activities.



SECRETARY MANAGER’S REPORT (cont.)

Financially this year we haven’t finished too bad. Cash flow from our normal operations was a surplus of $62,922 of which $3,490 was used to pay for the purchase of property, plant and equipment, $22,206 to repay our loans, giving us a net increase in cash flow this year of $37,226.

The net trading result after depreciation and non-cash items was a loss of ($15,884) compared to the prior year, a loss of ($19,544). A minor improvement for the year. Revenue was down approximately $7,330 with expenses also dropping by approximately $10,900. In the coming year, we have set a budget to benchmark our performance. Should this be achieved we can return the club to profitability.

During the year, the club has honoured all statutory, bank and hire purchase commitments.

In early July 2018 we upgraded four (4) of our poker machines. We installed another two lightning cash machines, converted one of our existing lightning cash machines over to a dragon cash and converted another with Aristocrat. The results since the change have been pleasing.

In the coming months we are looking to replace much of our TAB stools and commence the upgrading of our furniture as funds become available.

In August, we welcomed Riverside Fusion as our new contract caterers to the club. We made the decision to change cuisines to Chinese and Asian style from a Classic Australian menu. We believe the change has been embraced by many of our members. We continue to receive many favourable comments about the food.

Recently, we totally replaced our verandah roof in our outdoor smoking area and purchased a new wok for the kitchen and a commercial freezer.

The club has also applied for a NSW Government Grant to replace the existing air conditioning system which has been operating since the club was rebuilt in the early 2000’s. As part of the government grant we have also applied to be and SES Emergency Evacuation Centre in Kendall.

The forecast for the club this coming year has been positive. The first quarter we posted a profit in excess of $20,000. This was achieved through growth in both bar and gaming revenues. We believe a contributor to this is a change in our catering. Our expenses remained identical to the same period last year.

I must thank Bill and the Board of Directors for their enthusiasm in directing the club in a positive way and for their valuable assistance. The club is extremely lucky to have such a committed board.

I must also thank all the staff for their hard work. Sometimes, the job is onerous and staff are required to perform a number of duties, unlike working in larger clubs. I appreciate your work and change in rostered hours sometimes at short notice.

Thanks to all of our sub-clubs that continue to patronise us which includes the Social Golf Club, Social Darts Club, Kendall Blues Rugby League Football Club and the Kendall-Comboyne Cricket Club.

Lastly, thank you to all club members for your patronage and support. I remain positive and optimistic for the new financial year ahead.

Peter Hemingway Secretary Manager



SOCIAL GOLF CLUB REPORT

As we approach the end of another year of Social Golf firstly I would like to thank all the players old and new for coming along every fortnight for a friendly game of social golf. I would also like to thank Pete and the Staff at the club for making us so welcome not only after golf but also for the BBQ and anytime we are in the club. This year we have only had a few away games and inter club challenges but we are looking towards organising more in the New Year. Finally I would like to thank all my committee and helpers that are there each game to help me out, it makes my job so much easier and enjoyable. I look forward to seeing you all again at our next game. Also I am looking forward to another year of Kendall Social Golf. Kind Regards Phil Dykes President Kendall Social Golf

SOCIAL DARTS CLUB REPORT

On behalf of the Darts Social Club I would like to thank the secretary manager and the board for their support in 2018. We have had an enjoyable year with increase in our playing numbers. We are all looking forward to our Christmas Party in December. All players welcome on Tuesday evenings. Names to be in by 7pm for 7:15pm start. Secretary Garry Rowe

Kendall Services & Citizens Club Limited

ABN 43 001 058 153

Financial Statements


Contents Page

Directors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Auditor's Independence Declaration . . . . . . . . . . . . . . . . 4

Independent Auditor's Report . . . . . . . . . . . . . . . . . . . . . 5

Directors' Declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Statement of Comprehensive Income . . . . . . . . . . . . . . . 8

Statement of Financial Position . . . . . . . . . . . . . . . . . . . 9

Statement of Changes in Equity . . . . . . . . . . . . . . . . . . . 10

Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . 11

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . 12

Compilation Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Trading Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Profit & Loss Statement . . . . . . . . . . . . . . . . . . . . . . . . . 41

Kendall Services & Citizens Club LimitedABN 43 001 058 153Directors' Report


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Your directors present this report on the Club for the financial year ended 30th June 2018.

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

Director Qualifications Special Responsibilities

William Jones Retired Pesident

Allan Sandersan Storeman Vice PresidentRaymond O'Neill Retired Forestry Worker

Michael Douglas (Res. 16/11/18) RetiredIan Twomey Air-conditioning Technician

Margot McLennan Home DutiesBarry Barr Retired

Jim Stewart Self EmployedGray Malone (App. 03/10/17) Retail Assistant

Ross Bate (App. 20/02/18/) Retired

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

Short Term ObjectivesThe Club's short term objectives are to:

1. Maintain a viable community asset that offers licensed facilities with gaming, dining and entertainment options

for our members, their families and their guests.

2. Consolidate the Club's financial position by increasing income and strictly controlling expenditure.

3. Be sustainable and strive for continuous improvement so as to offer the best facility in the local area and onethat is inviting to people of all ages and gender.

Long Term ObjectivesThe Club's long term objectives are to:

1. Retire the Club's debt and focus on savings accumulation.

2. Maintain the Club's property and when necessary make alterations to accommodate new trends and potentialmarkets.

3. Increase membership in the local area and offer the products and services that will ensure a members

relationship with the Club continues year after year.

StrategiesTo achieve these objectives, the Club has adopted the following strategies:

1. Develop and nurture a culture within the community that the Club's reason for existence and its objectives are

focused on our members. Building and maintaining membership through our product range, exceptional serviceand diverse entertainment options is a prerequisite for our future success.

2. Developing income streams independent of gaming has become extremely important for clubs of all sizes. In

uncertain times of legislation changes and economic downturns, the Board has committed to exploring alternativeforms of income away from normal daily trade as a strategy to lessen our reliance on income generated in this

area.

Kendall Services & Citizens Club LimitedABN 43 001 058 153Directors' Report


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Principal ActivitiesThe principal activities of the Club during the course of the year were to operate a registered Club.

No significant changes in the nature of this activity occurred during the financial year.

How Activities Assist in Meeting ClubThe principal activities of the Club include the operation of the bar and gaming area, provision of entertainment

and the sale of take home liquor. The operation, management and promotion of these activities assisted the Clubin achieving its objectives.

Performance MeasurementThe Club's board is currently developing a Strategic Plan culminating with a Masterplan that will serve the Clubfor many years. This Strategic Plan will be reviewed on a regular basis to ensure relevance.

A number of Key Performance Indicators (KPI's) are used by the Club to measure, monitor and improve the

Club's performance and to achieve our objectives through sound financial management.

Business activities are monitored to ensure that the goals, objectives and business strategies are achieved.

Meetings of DirectorsDuring the twelve months ended 30 June 2018, 15 ordinary meetings of the Club's directors were held, and

attendances were:

Director Meetings Eligible to Attend Number Attended

William Jones 15 14Allan Sandersan 15 14

Raymond O'Neill 15 14Michael Douglas 8 1

Ian Twomey 15 11Margot McLennan 15 15

Barry Barr 15 15Jim Stewart 15 13

Gray Malone (App. 03/10/17) 14 10Ross Bate (App. 20/02/18) 7 4

Limited by GuaranteeThe Club is an incorporated company under the Corporations Act 2001 and is a company limited by guarantee. Ifthe Club is wound up, the constitution states that each member is required to contribute a maximum of $1 each

towards any outstanding obligations of the Club. As at 30 June 2018 the collective liability of members was$677.

Kendall Services & Citizens Club LimitedABN 43 001 058 153

Statement of Profit or Loss and Other Comprehensive IncomeFor the Year ended 30 June 2018

Note 2018$

2017$

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

Revenue 2 1,679,122 1,685,288

Other Income 2 18,448 19,616

1,697,570 1,704,904

Cost of Sales 1,029,797 960,551

Employee Benefits 261,479 290,725

Advertising 19,177 14,887

Bingo Expenses 13,414 13,021

Cleaning 37,284 39,242

Depreciation 45,485 57,172

Electricity & Gas 20,685 40,560Entertainment for Members & Guests 12,207 15,106

Insurance 30,007 30,261

Interest Paid 10,050 10,550

Promotional Drinks/Giveaways 14,020 22,257

Raffle Expenses 60,839 54,116

Repairs & Maintenance 26,293 28,580

Sky Channel 17,268 16,532

Other Expenses 115,449 130,888

1,713,454 1,724,448

Current year deficit 3 (15,884) (19,544)

Income tax (expense)/benefit 4 - -

Net current year deficit (15,884) (19,544)

Other comprehensive income - -

Total other comprehensive income for the year (15,884) (19,544)

Total comprehensive income attributable to members (15,884) (19,544)


Statement of Financial PositionAs at 30 June 2018

Note 2018$

2017$

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The accompanying notes form part of these financial statements.These Financial Statements have been subject to audit and should be read in conjunction with the attached Independent Auditor's Report.

CURRENT ASSETSCash and Cash Equivalents 5 101,952 64,726

Trade and Other Receivables 6 20,187 20,770Inventories 7 22,489 36,501

Other 8 5,162 11,679

TOTAL CURRENT ASSETS 149,790 133,676

NON-CURRENT ASSETSProperty, Plant and Equipment 9 2,514,066 2,556,061

TOTAL NON-CURRENT ASSETS 2,514,066 2,556,061

TOTAL ASSETS 2,663,856 2,689,737

CURRENT LIABILITIESTrade and Other Payables 10 66,152 41,590

Borrowings 11 66,774 51,673

Provisions 12 11,664 24,616Other 13 5,050 4,349

TOTAL CURRENT LIABILITIES 149,640 122,228

NON-CURRENT LIABILITIESBorrowings 11 111,567 148,874

Provisions 12 359 461

TOTAL NON-CURRENT LIABILITIES 111,926 149,335

TOTAL LIABILITIES 261,566 271,563

NET ASSETS 2,402,290 2,418,174

EQUITYReserves 14 1,058,471 1,058,471Retained Earnings 1,343,819 1,359,703

TOTAL EQUITY 2,402,290 2,418,174


Statement of Changes in EquityFor the Year ended 30 June 2018

2018$

2017$

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The accompanying notes form part of these financial statements.These financial statements have been subject to audit and should be read in conjunction with the attached Independent Auditor's

Report.

RETAINED SURPLUS

Balance at 1 July 1,359,704 1,379,248

Surplus/(Deficit) for the year attributable to members (15,885) (19,545)

- -

Balance at 30 June 1,343,819 1,359,703

ASSET REVALUATION RESERVE

Movement for the year 1,058,471 1,058,471

Balance 30 June 1,058,471 1,058,471


Statement of Cash FlowsFor the Year ended 30 June 2018

Note 2018$

2017$

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

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 1,778,269 1,814,805Payments to suppliers and employees (1,722,505) (1,769,889)

Receipts from government 17,180 17,180

Interest received 28 24

Finance costs (10,050) (10,550)

Net cash provided by operating activities 17 62,922 51,570

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of plant & equipment (3,490) (86,705)

Additions to land & building - -

Net cash used in investing activities (3,490) (86,705)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings - 74,729

Repayment of borrowings (22,206) (64,196)

Net cash provided by/(used in) financing activities (22,206) 10,533

NET INCREASE/(DECREASE) IN CASH HELD 37,226 (24,602)

Cash and cash equivalents - beginning of the financial year 64,726 89,328

Cash and cash equivalents - end of the financial year 5 101,952 64,726


Notes to the Financial StatementsFor the Year ended 30 June 2018

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These Notes to the Financial Statements should be read in conjunction with the attached Independent Auditor's Report.

These financial statements cover Kendall Services & Citizens Club Limited as an individual entity,

incorporated and domiciled in Australia. Kendall Services & Citizens Club Limited is a company

limited by guarantee.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

These general purpose financial statements have been prepared in accordance with Australian

Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act

2001. The company is a for-profit entity for financial reporting purposes under Australian Accounting

Standards.

Except for cash flow information, these financial statements have been prepared on an accruals basis

and are based on historical costs, modified, where applicable, by the measurement at fair value of

selected non-current assets, financial assets and financial liabilities.

Material accounting policies adopted in the preparation of the financial statements are presented

below and have been consistently applied unless otherwise stated.

Accounting Policies

(a) Cash and Cash EquivalentsCash and cash equivalents includes cash on hand, deposits held at call with banks, other short

term highly liquid investments with original maturities of three months or less and bankoverdrafts. Bank overdrafts are shown within current borrowings on the Statement of Financial

Position.

(b) Employee BenefitsProvision is made for the company's liability for employee benefits arising from services

rendered by employees to balance date. Employee benefits have been measured at the amount

expected to be paid when the liability is settled for all employees with service periods

exceeding 5 years.

(c) InventoriesInventories are measured at the lower of cost and net realisable value.

(d) Property, Plant & EquipmentEach class of property, plant and equipment is carried at cost or fair value, as indicated, less any

accumulated depreciation and impairment losses.

PropertyFreehold land & buildings are measured on the cost basis and are therefore carried at cost less

accumulated depreciation and any accumulated impairment losses.



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Plant & EquipmentPlant and equipment are measured on the cost basis and are therefore carried at cost less

accumulated depreciation and any accumulated impairment losses.

The directors annually review the carrying amount of property, plant and equipment to ensure it

is not in excess of the estimated recoverable amount of those assets. In the event the carrying

amount is greater than the estimated recoverable amount, the carrying amount is written down

immediately to the estimated recoverable amount and impairment losses are recognised in

either 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 note 1(g)).

DepreciationThe depreciable amount of all fixed assets including buildings and capitalised leased asset, butexcluding freehold land, is depreciated over the useful lives of the assets to the Club

commencing from the time the asset is ready for use.

The depreciation rates used for each class of assets are:

Class of Fixed Assets Depreciation Rate

Buildings 2.5 - 30%

Plant & Equipment 5 - 40%

Gaming Machines 30 - 40%

Office Equipment 7.5 - 50%

Kitchen Equipment 7.5 - 20%

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

The gains or losses are recognised in profit or loss in the period in which they arise.



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(e) Income TaxIncome tax expense/(revenue) for the year comprises current income tax expense/(income) and

deferred tax expense/(income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income

calculated using applicable income tax rates enacted, or substantially enacted, as at reporting

date. Current tax liabilities/(assets) are therefore measured at the amounts expected to be

paid/(recovered from) the relevant taxation authority,

Deferred income tax expense reflects movements in deferred tax assets and deferred tax liability

balances during the year as well as unused tax losses.

Current and deferred income tax expense/(income) is charged or credited directly to equityinstead of profit or loss when the tax relates to items that are credited or charged directly to

equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising

between the tax bases of assets and liabilities and their carrying amounts in the financial

statements. Deferred tax assets also result where amounts have been fully expensed but future

tax deductions are available. No deferred income tax will be recognised from the initial

recognition of an asset or liability, excluding a business combination, where there is no effect on

accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the

period when the asset is realised or the liability is settled, based on the tax rates enacted orsubstantially enacted at reporting date. Their measurement also reflects the manner in which

management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only

to the extent that it is probable that future taxable profit will be available against which the

benefits of the deferred tax asset can be utilised.

(f) Impairment of AssetsAt the end of each reporting period, the company reviews the carrying values of its tangible and

intangible assets to determine whether there is any indication that those assets have beenimpaired. 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 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.

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.



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(g) Revenue and Other IncomeRevenue from the sale of goods is recognised when the goods are delivered to customers.

Interest income is recognised on a proportional basis taking into account the interest rates

relevant to the financial assets.

Income from providing a service is recognised when the customer receives the service.

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

(h) 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, it is thenrecognised as part of the cost of acquisition of an asset or as part of an item of expenses.

Receivables and payables in the Balance Sheet are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST

component of investing and financing activities, which are disclosed as operating cash flows.

(i) Critical Accounting Estimates and JudgementsThe directors evaluate estimates and judgments incorporated in the financial report based on

historical knowledge and best available current information. Estimates assume a reasonable

expectation of future events and are based on current trends and economic data, obtained both

externally and within the company.

Key Estimates - Impairment

The company assesses impairment at the end of each reporting period by evaluating conditions

and events specific to the company that may be indicative of impairment triggers. Recoverable

amounts of relevant assets are reassessed using value -in-use calculations which incorporate

various key assumptions.

No impairment has been recognised in respect of assets at 30 June 2018.

Key Judgments - Provision for Impairment of Receivables

The directors believe the full amount of trade receivables are recoverable, and no doubtful debtprovision has been made at 30 June 2018.



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(j) Financial Instruments

Initial Recognition and MeasurementFinancial 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.

Financial instruments are initially measured at fair value plus transaction costs except where

the instrument is classified as 'at fair value through profit or loss' in which case transaction

costs are expensed to profit and loss immediately.

Classification and Subsequent MeasurementFinancial instruments are subsequently measured at either cost, fair value or amortised costusing the effective interest rate method.

Fair value represents the amount for which an asset could be exchanged or a liability settled,

between knowledgeable, willing parties. Where available, quoted prices in an active market are

used to determine fair value. In other circumstances valuation techniques are adopted.

Amortised cost is calculated as: (i) the amount by which the financial asset or financial liability

is measured at initial recognition, (ii) less principal repayments; (iii) plus or minus the

cumulative amortisation of the difference, if any, between the amount initially recognised and

the maturity amount calculated using the effective interest method; and (iv) less any reduction

for impairment.

The effective interest method is used to allocate interest income or interest expense over the

relevant period and is equivalent to the rate that exactly discounts future cash payments or

receipts (including fees, transaction costs and other premiums or discounts) through the

expected life (or when this can not be reliably predicted, the contractual term) of the financial

instrument to the net carrying amount of the financial asset or financial liability. Revisions to

expected net cash flows will necessitate an adjustment to the carrying value with a

consequential recognition of an income or expense in the profit and loss.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at 'fair value through profit or loss' when they are either held fortrading for the purpose of short term profit taking, derivatives not held for hedging purposes, or

when they are designated as such to avoid an accounting mismatch or to enable performance

evaluation where a group of financial assets is managed by key management personnel on a fair

value basis in accordance with a documented risk management or investment strategy. Such

assets are subsequently measured at fair value with changes in carrying value being included in

profit or loss.

(ii) 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.



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(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities or

fixed or determinable payments, and it is the companies intention to hold these investments to

maturity. They are subsequently measured at amortised cost.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not capable

of being classified into other categories of financial assets due to their nature, or they are

designated as such by management. They comprise investments in the equity of other entities

where there is neither a fixed maturity nor fixed or determinable payments.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured

at amortised cost.

Derecognition

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 where the related obligations are either discharged, cancelled or expire. The

difference between the carrying value of the financial liability extinguished or transferred toanother party and the fair value of consideration paid, including the transfer of non-cash assets

or liabilities assumed, is recognised in profit or loss.

(k) Comparative FiguresWhere required by accounting Standards, comparative figures have been adjusted to conform to

changes in presentation for the current financial year.



2018$

2017$

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2. REVENUE AND OTHER INCOME

Revenue

Sale of goods 1,544,225 1,554,505

Bingo Takings 12,036 12,738

Keno Commission 34,093 35,572

TAB Commission 11,546 2,799

Other Commissions 12,994 14,760

Raffle Ticket Sales 60,233 57,106

Membership Fees 3,995 7,808

1,679,122 1,685,288

Other IncomeInterest Received 28 24

Sundry Income 18,420 19,592

18,448 19,616

3. DEFICIT FOR THE YEAR

(a) Expenses

Cost of Sales 1,029,797 960,551Finance costs 10,050 10,550

Movements in Provisions

- depreciation of Club property, plant & equipment 45,485 57,172

- employee entitlements (13,054) 12,707

Remuneration of the Auditor:-

- audit of financial statements 9,990 9,420

- other services 230 220



2018$

2017$

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4. INCOME TAX EXPENSE

(a) The components of tax expense comprise:

Current year tax - -

Deferred tax - -

- -

(b) The prima facie tax payable on profit from ordinary activities

is reconciled to the income tax income tax expense

at a rate of 27.5% (2017: 30%) as follows;

Prima Facie Income Tax on the Operating Profit (4,368) (5,863)

Add:

Tax effect of:

Other Non Allowable Items 156,111 189,837

Non-assessable income (149,263) (183,701)

Recoupment of Prior Year Tax Losses (2,480) (273)

Income Tax Expense - -

The Club has carry forward income tax losses at 30 June 2018 of $185,486

A Deferred Tax Asset has not been recognised for these losses as it is not

probable that future tax profits will be available against which deductible

temporary differences can be utilised.

5. CASH AND CASH EQUIVALENTS

Cash Floats 30,000 32,418

ANZ Cheque Account - 14,386

Bendigo Bank Business Cash Management Account 71,952 17,922

101,952 64,726



2018$

2017$

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6. TRADE AND OTHER RECEIVABLES

CurrentTrade Receivables 867 1,223

Other Receivables

- ATM Clearing 5,090 9,600

- ATO RBA 27 27

- EFTPOS Clearing 2,837 150

- Undeposited Funds Account 9,514 -

GST Provision 1,852 9,770

20,187 20,770

7. INVENTORIES

Stock on Hand - at cost

- Bulk Beer 3,955 12,329

- Packaged Beer 5,546 7,454

- Softdrinks 931 515

- Spirits/Liqueurs 3,632 7,422

- Wine 3,050 2,416

- Ready To Drink 2,455 2,959

- Other Miscellaneous Bar 2,920 3,406

22,489 36,501

8. OTHER ASSETS

CurrentPrepayments 5,162 11,679

5,162 11,679



2018$

2017$

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9. PROPERTY, PLANT & EQUIPMENT

Land & Buildings - 4 Graham St., Kendall

- Land - at Cost 20,613 20,613

- Revaluation June 2017 99,387 99,387

120,000 120,000

Car Park - Leasehold Expenses at Cost- Professional Fees 3,070 3,070

3,070 3,070

Buildings - at Cost- Club Council Fees 13,262 13,262

- Club Professional Fees 12,153 12,153

- Club Construction and Additions 1,867,292 1,867,292

- Verandah Council Fees 21,476 21,476

- Verandah Professional Fees 8,730 8,730

- Verandah Construction Costs 149,063 149,063

- Building Works 4,893 4,893

- Revaluation June 2017 959,084 959,084

Less Accumulated Depreciation (792,953) (792,953)

2,243,000 2,243,000

Total Land & Buildings 2,366,070 2,366,070

Plant & Equipment

Plant & Equipment - at Cost 243,229 239,739


70,097 79,737

Gaming Machines - at Cost 330,225 330,225


39,505 64,918

Office Equipment - at Cost 36,305 36,305


19,335 21,370

Kitchen Equipment - at Cost 39,765 39,765


19,059 23,966

Total Plant & Equipment 147,996 189,991

Total Property, Plant & Equipment 2,514,066 2,556,061



2018$

2017$

- 22 -


(a) Movements in Carrying AmountsMovement in the carrying amounts for each class of property, plant and

equipment between the beginning and the end of the current financial year:

Land and BuildingsBalance at beginning of year 2,366,070 1,307,599

Additions - -

Revaluation - 1,058,471

Depreciation expense - -

Balance at end of year 2,366,070 2,366,070

Plant and EquipmentBalance at beginning of year 189,991 160,458

Additions 3,490 86,705

Disposal proceeds - -

Depreciation expense (45,485) (57,172)

Balance at end of year 147,996 189,991

Total Carrying amount at end of year 2,514,066 2,556,061

(b) Insured ValueThe Club has insured its building for $5.52m and its contents, plant and equipment for $1.145m.

(c) ValuationIn August 2017, PM Valuations Pty Ltd valued the land, buildings

and site improvements of the Club. For the purposes of AASB 116, they

determined the fair value of the assets at 30/06/17 to be $2,363,000.

The directors have determined that this value would be representative of the

fair value of the assets as at 30 June 2018.



2018$

2017$

- 23 -


10. TRADE AND OTHER PAYABLES

CurrentUnsecured LiabilitiesOther Payables

- BAS 12,731 19,414

- Superannuation 2,388 -

- TAB Clearing 1,330 566

- Keno Clearing (2,621) 2,555

13,828 22,535

Trade Payables 42,464 10,064

Accrued Expenses 9,860 8,991

66,152 41,590

11. BORROWINGS

CurrentBank Overdraft 17,125 -

Secured LiabilitiesANZ Business Loan 36,000 36,000

Aristocrat Loans (Poker Machines) 13,649 15,673

66,774 51,673

Non-CurrentSecured LiabilitiesANZ Business Loan 104,743 130,262

Aristocrat Loans (Poker Machines) 6,824 18,612

111,567 148,874

(a) Collateral ProvidedThe bank loan is secured by registered first mortgage over the land and buildings owned by the Club.

The remaining loans and leases are secured by the assets to which the finance relates.

(b) Overdraft FacilityThe Club has a $49,000 overdraft facility with the ANZ Bank.



2018$

2017$

- 24 -


12. PROVISIONS

CurrentProvision for Annual Leave 6,706 16,274

Provision for Long Service Leave 4,958 8,342

11,664 24,616

Non-CurrentProvision for Long Service Leave 359 461

(a) Aggregate Employee Benefits Liability 12,023 25,077

(b) Movement in ProvisionsOpening Balance 1 July 25,077 12,370

Additions during the year 1,799 12,707

Amounts used or reversed (14,853) -

Balance at 30 June 12,023 25,077

13. OTHER LIABILITIES

CurrentMemberships in Advance 5,050 4,349

5,050 4,349

14. RESERVES

Asset Revaluation Reserve (Land) 1,058,471 1,058,471

1,058,471 1,058,471

Movements during the year were due to the revaluation of

land & buildings at 4 Graham Street Kendall.



2018$

2017$

- 25 -


15. KEY MANAGEMENT PERSONNEL COMPENSATION

Key management personnel have been taken to comprise the Directors and the Secretary Manager

during the financial year. The aggregate compensation of key management personnel during the

financial year comprising amounts paid or payable or provided for was as follows:-

Short Term Benefits 100,941 90,835

Long Term Benefits (2,012) 523

Post Employment Benefits 9,589 7,545

Total Compensation 108,518 98,903

16. AUDITOR'S REMUNERATION

Remuneration of the Auditor of the company for:

- Audit & review of financial reports 9,990 9,420

9,990 9,420

17. CASH FLOW INFORMATION

(a) Reconciliation of Cash Flow from Operations with Profit/(Loss) after Income Tax

Profit/(Loss) after income tax (15,885) (19,545)

Non Cash Flows in Profit:

- Depreciation 45,485 57,172

- Profit on sale non-current assets - -

Changes in Assets and Liabilities:

- Decrease/(increase) in trade & other receivables (7,335) 954

- Decrease/(increase) in other assets 6,517 (2,289)

- Decrease/(increase) in inventories 14,011 (2,973)- Increase/(decrease) in trade & other payables 36,662 (5,981)

- Increase/(decrease) in other liabilities (3,480) 11,525

- Increase/ (decrease) in provisions (13,054) 12,707

Net Cash provided by operating activities 62,922 51,570



2018$

2017$

- 26 -


18. FINANCIAL RISK MANAGEMENT

The Company's financial instruments consists of cash and cash equivalents, accounts receivable, term

deposit, accounts payable and a fixed term bank loan. The totals 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:

Financial assets

Cash and cash equivalents 101,952 64,726

Trade and other receivables 20,187 20,770

122,139 85,496

Financial liabilities

Trade and other payables 66,152 41,590

Borrowings 178,341 200,547

244,493 242,137

Financial Risk Management Policies

The directors' overall risk management strategy seeks to assist the company in meeting its financial

targets, whilst minimising potential adverse effects on financial performance. Risk managementpolicies are approved and reviewed by the directors on a regular basis. These include the credit risk

policies and future cash flow requirements.

Specific Financial Risk Exposures andManagement

The main risks the company is exposed to through its financial instruments are interest rate risk,

liquidity risk and credit risk.

(a) Interest Rate RiskExposure to interest rate risk arises on financial assets and financial liabilities recognised at reporting

date whereby a future change in interest rates will affect future cash flows or the fair value of fixedrate financial instruments. The company is also exposed to earnings volatility on floating rate

instruments.

The Company is exposed to interest rates risk on cash at bank and term deposits and its fixed rate

loan.



2018$

2017$

- 27 -


(b) Credit RiskExposure 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 to the company. Credit risk

may arise from exposures to customers and deposits with financial institutions.

Credit risk is managed through maintaining procedures ensuring, to the extent possible, that clients

and counterparties to transactions are of sound credit worthiness.

The company is not materially exposed to credit risk.

(c) Liquidity RiskLiquidity risk arises from the possibility that the company might encounter difficulty in settling its

debts or otherwise meeting its obligations related to financial liabilities. The company manages this

risk by monitoring forecast cash flows on a monthly basis.

Net Fair Values

The net fair values of financial assets and financial liabilities approximates their carrying values.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are

disclosed in the balance sheet and in the notes to the financial statements.

Interest Rate Risk Sensitivity Analysis

The company has not performed a sensitivity analysis relating to its exposure to interest rate risk

at balance date as the directors believes the effect on profitability and equity is immaterial.

(d)

2018 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 2017% % $ $ $ $ $ $ $ $ $ $

FINANCIAL ASSETS:

Cash on Hand 30,000 46,804 30,000 46,804Cash at Bank 0.06% 0.14% 71,952 17,922 0 0 71,952 17,922Trade & Other Receivables - - 20,187 20,770 20,187 20,770

Total Financial Assets 71,952 17,922 0 0 0 0 50,187 67,574 122,139 85,496

FINANCIAL LIABILITIES:

Trade and Other Payables - - 66,152 41,590 66,152 41,590Borrowings 6.20% 6.20% 157,868 166,262 0 0 0 0 20,473 34,285 178,341 200,547

Total Financial Liabilities 157,868 166,262 0 0 0 0 86,625 75,875 244,493 242,137

Effective Interest Rate Within 1 Year 1 - 5 Years

These Notes to the Financial Statements should be read in conjunction with the attached Independent Auditor's Report

- 28 -

Weighted Average Floating Interest Rate Fixed Interest Rate Maturing Non-Interest Bearing Total

NOTE 18: FINANCIAL RISK MANAGEMENT (Cont.)

The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed period of maturity, as well as management's expectations of the settlement period for all other financial instruments. As such, the amounts may not reconcile to the Statement of Financial Position.


Notes to the Financial Statements for the Year ended 30 June 2018

Financial Instrument Composition and Maturity Analysis



2018$

2017$

- 29 -


19. CAPITAL AND LEASE COMMITMENTS

A. Capital Commitments

In October 2016 the Club committed to the purchase of a new gaming machine licence (diamond type

4) through Aristocrat. The total cost of the hardware and software is $37,224 plus GST, payable in

equal ($1,034.00 plus GST) interest free monthly instalments over 3 years, payments commenced in

January 2017.

B. Finance Lease Commitments

Payable - minimum lease payments

- not later than 12 months 13,649 15,673

- later than 12 months but not later than 5 years 6,824 18,612

Minimum lease payments 20,473 34,285

Present value of minimum lease payments 20,473 34,285

20. CONTINGENT ASSETS & LIABILITIES

Contingent Assets:

The Club holds entitlements for 15 poker machines. No cost was attached to these entitlements, but

they would currently have value if sold.

Contingent Liabilities:

The company has a contingent liability for permanent employees' sick leave. As sick leave is not

payable unless physically taken, no liability for this leave has been taken up in the financial

statements.

21. RELATED PARTY TRANSACTIONS

Transactions between related parties are on normal commercial terms and conditions unless otherwisestated.

(a) During the 2018 financial year the Club paid Hastings Air Conditioning Services a total of $10,097

for general repairs. Hastings Air Conditioning Services is a related entity of Club director, Ian

Twomey.



- 30 -


22. EVENTS AFTER THE REPORTING DATE

The directors are not aware of any other events after 30 June 2018 that may have a significant affect

on these financial statements.

23. MEMBERS' GUARANTEE

The Company is incorporated under the Corporations Act 2001 and s a company limited by

guarantee. If the company is wound up, the Articles of Association state that each member is required

to contribute a maximum of $1 each towards meeting outstanding obligations of the company.

Membership numbers as at 30 June 2018: 677 (2017: 1,300)

24. COMPANY DETAILS

The registered office of the Club is;

C/- PDD Advisory Group

2/75 Bold Street, Laurieton NSW 2443

The principal place of business is;

4 Graham Street, Kendall NSW 2439

KSCC 2018 Financial Report for Printer

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