Page 1


3 2

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


INDEX

4

PRESIDENTS WELCOME

5

CEO’S REPORT

6

LEADERSHIP TEAM

8

OUR YEAR AT A GLANCE

10

OUR PEOPLE

12

OUR COMMUNITY

14

OUR SCHOOLS

16

NOTICE OF AGM

22

ANNUAL REPORT

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

3


President’s Welcome David Olsson

It is my pleasure to present to the members of the Campbelltown Catholic Club Limited the Club’s Annual Report for the financial year ending 30th June 2019. This report is to be considered at the Annual General Meeting to be held on Wednesday 6th November 2019 at 7.00pm on the Club’s premises. The report, financial statements and notes pertaining thereto are very comprehensive and give an accurate account of the Club’s position. The profit of about $3.6m is a slight decrease on last year’s number, but still a very good result and reflects a continuingly pleasing return on our investment in upgraded Club facilities. Much of the decrease can be attributed to the effect on hotel trading of the extensions and renovations undertaken. Over the past year our debt levels have reflected the additional investment in the hotel but are again being reduced in preparation for further investment which I will touch on later. Our cash surpluses will still primarily be used to pay down debt but we are again targeting new works which will cause debt levels to fluctuate over the next year or two. Our overall liability profile is, however, well within our capacity to manage. In 18/19 we were once more able to provide a substantial level of donations to the community. A cash figure of over $1.2m was donated to schools, various charities and sporting clubs, a community assistance level of which all Club members should be very proud. As is usual our schools were the main recipients of these donations along with significant grants to many charities and community groups. It should be remembered this figure doesn’t account for the many sponsorships we undertake nor for the non-cash support we provide to many different groups and individuals in our community. We are and will remain a community based club striving to be the best corporate citizen we can be. Some increases in donation levels are intended in 19/20. Members will be aware that extensions and renovations to our hotel were completed before Christmas last year. The final product is extremely impressive and trading results have more than justified the investment. I can also advise that contracts are about to be signed for the refurbishment of a number of areas of the mother Club. The indoor gaming area, the foyer, both the upstairs and downstairs pre-function spaces and a new eatery to replace Café Samba are all scheduled for renovation and renewal. These works will improve traffic flow through the Club and provide a bright new look to our facilities.

4

As an aside several other investment options are being considered and further information will flow if and when these come to fruition. As has become part of our Corporate Governance regimen I have again conducted formal Board performance reviews with the Club Directors. I have previously said this process is designed to help the Board evaluate individual as well as collective performances over the review period. Our methodology for review will be regularly reviewed so as to maintain currency with best practice corporate governance standards. Annual performance reviews have also been carried out with the General Manager and the Management team. I would like to take this opportunity to thank my fellow Directors, our CEO Michael Lavorato, the Management and Staff of our Club for their continuing professionalism and enthusiasm. It has again been a good year for our Club and the continuing pursuit of excellence by our staff is testament to their attitude and dedication to their respective roles. I am regularly reminded that our Club is seen as a leader and an innovator by the industry and our standing is verification of the ongoing dedication of our staff and their relentless quest for excellence in the service levels provided to members. A reminder to any Catholic member who wishes to nominate for a position on the Board of Directors for our Club, nominations must be received by the Club’s General Manager at least fourteen (14) days prior to the Annual General Meeting, ie by 5pm on Wednesday 23rd October 2019. Forms can be obtained from the Club’s front desk together with an information pack detailing legal obligations and responsibilities. As per our Constitution we would normally conduct triumvirate elections with three positions on the Board up for election each year. However, the resignation of any Director(s) in the year or so will result in elections for a lesser number of Board positions. This is to comply with the change to the Club’s constitution endorsed by members at the 2017 AGM whereby Board numbers are to reduce to 7 by the time of the AGM in 2020. A big thankyou to all our members for the loyalty you show to the King of Clubs. Your support will ensure we will continue to provide members with venues and services of which you can all be proud.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


CEO’s Report Michael Lavorato

It is my privilege to present this report to the members of Campbelltown Catholic Club. The financial year ended 30 June 2019 resulted in a net profit of $3,587,580. This was a good result, achieved in a difficult economic environment. Low wages growth and higher household living expenses have impacted on domestic consumption patterns, in particular retail and leisure spending. In addition, disruptors such as Uber EATS, together with the relatively low cost of home entertainment technology and the ready access to cheap alcohol are having a profound influence on the way consumers choose to spend their leisure time. Despite the downturn in profitability the Club maintained its donations at levels beyond its statutory requirements. Donations of $1,135,720. Were provided to schools, charities, community and sporting organisations. This year’s total donations meant that a new milestone was achieved whereby total donations to the local community since the Club inception now exceed $30 million. The 2019/20 year promises to be an exciting one for members of the Club with the commencement of long-awaited refurbishment of many areas in the Club. Work will soon commence on:• A new coffee shop • A new Restaurant to replace Café Samba • The complete gutting of the foyer to improve traffic flow which will involve the demolition and replacement of the main stairs

I am confident that members and guests will be impressed with the result which will be fully unveiled once construction is complete in October 2020. I am thrilled to advise that our popular and beautiful Modern Asian Restaurant Kyubi has been recognised in the recent Restaurant & Catering Awards. At a presentation night at the Star in Sydney, Kyubi won the award for Best Restaurant in a Club, Pub or Tavern – NSW. This is a wonderful endorsement from the foodie community and is well deserved. If you haven’t yet tried Kyubi, then I urge you to see and taste for yourself what everyone else is talking about. My thanks and appreciation goes to our President and Chairman David Olsson and to fellow Directors, who have given me, my Management team and staff support and encouragement throughout the year. To my Management team, thank you for your loyalty, dedication and hard work in achieving our strategic objectives. To all members of Staff, thank you for continuing to set benchmarks in service that are the envy of most Clubs and for your efforts to ensure that every visit from our members and guests is a memorable one. Finally, to you the Members, thank you for your encouragement and support of the Club and its objectives and for all members who take the time to provide us with ongoing and valuable feedback.

• New reception area • The refurbishment of the indoor gaming lounge • Improved traffic flow to ground floor eateries • A new bar and pizza offering to enhance the Embers Charcoal Kitchen experience • Refurbishment of ground floor toilets • Renewal of the upstairs pre function spaces

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

5


Leadership Team 1 2 3 4 5 6 7 8 9

10 11 12 13

3

Michael Lavorato

Chief Executive Officer

Brett Barlow

General Manager Rydges Campbelltown

Leigh Brassil

Operations Manager

Roger Cubitt

Chief Financial Officer

Maryann Cook

Gaming Manager

11

Graeme Derrig

Chief Marketing Officer

Megan Faint

Digital Manager

Kristen Green

General Manager Aquafit

Tony Holmes

Operations Manager Facilities, Security and Compliance

5

Lance Howes

Information Technology Manager

6

Kellie Lopez

Events Manager

Peter Sheppard

Director of Food & Beverage

David Turner

General Manager Campbelltown Golf Club

10

2

6

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

12


9

1

13

Our vision is to be a caring Community of Fun‌ To make lives better through communal experiences. Our Senior Leadership Team and their key team members are responsible for driving this vision. 7

8

4 Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

7


Our Year at a Glance ENTERTAINED

WELCOMED

38,051

24,990

1 Million

HOTEL ROOM NIGHTS

SHOW PATRONS

PATRONS

HOSTED

236,455

86,929

865,771

AQUAFIT VISITS

FUNCTION GUESTS

27,725 ROUNDS OF GOLF

MEALS SERVED

RECYCLED

81

TONNES OF FOOD WASTE

Total donations to the local community since the Club’s inception now exceed

$30 MILLION 8

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Financial Snapshot Key Financials

2018/19

Growth

Total Revenue

66,277,722

1.4%

3,587,580

-20.5%

13,043,199

-7.8%

1,135,720

-20.3%

Total Assets

143,269,142

7.7%

Net Assets

116,118,104

3.2%

Taxes Paid

$

Profit Net Cashflow Donations

Gaming and Revenue Tax Council, Water Rates, Land Tax Payrol Tax Total Taxes Paid

Taxes as a Proportion of Revenue

13,583,031 374,164 1,033,616 14,990,811

23%

December 2018 marked Campbelltown Catholic Club’s 50th Anniversary. Past and present Directors joined to celebrate this major milestone. (L to R) David McDonald, Alan Scott, Bernie McGrath, Steve Muter, Steve Carter, Mary Ellen Bland, Peter Meadows, David Olsson, Tony Fitzgerald, Paul O’Loughlan, Andrew Stapleton, Trevor Seymour, Scott Wakeling, Peter Crittenden and Leo Delissen.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

9


Our People Our people are our greatest asset, throughout 2018-19 we continued to inspire and develop our team. Here are a few examples of our Leadership development opportunities and how we continually strive to challenge ourselves and set new benchmarks.

2019 Trek For Opportunity - Peter Sheppard An eclectic group of 16 met at Sydney airport for the once a day flight into Alice Springs. An accountant, a cook, an athlete, businesspeople and salesmen all sharing one single purpose, to raise funds and awareness for the Next Path program run by Mater Dei. Next Paths goal is to provide opportunities for young adults with an intellectual disability to be supported in ongoing learning, to be engaged in purposeful activities and in working towards achieving individual goals.

Alice Springs itself is the home of the ironically Australian flying doctor service, and school of the air but began as a telegraph relay station in the late 1800s connecting Adelaide to Darwin and the rest of the world. Some of the lines remain to this day. On the 3rd day we were wakened at 1.30 in the morning to begin a torchlit ascent to the peak of Mount Sonder. As we laboured up hill in the dark, uncertain of our destination, it is easy to draw parallels to the lives of the young adults and their families we are here to support. For us there is the knowledge that in the next few hours we will reach the peak and the sun will rise, for some the future is far less certain. As we resume our seats on the once a day flight out of Alice each member of our party has changed slightly by something they will takeaway from the experience or something they will leave behind. For me the vastness of the outback and the complexity of its ecosystem was a reminder that we are all only a small part of something much bigger. The sun will rise and set each day despite the problems of our individual lives as it has for billions of lives before. But as I look around the plane at my new friends and contemplate how the funds raised from this trek will affect so many, I know that together we can make a difference.

Over the next 5 days we stepped out of our comfort zone on the Larapinta trek amongst some of the most spectacular scenery in Australia. We slept under the stars in swags. We showered rarely. We rose before dawn to begin the day before the suns heat could slow us. The Larapinta trail runs 223 kilometres westward of Alice Springs and was only completed in 2002. Our party walked 5 stages of it totalling 85km and each day returned to our camp near Glenn Helen. For some this region of the McDonnell ranges is the spiritual centre of Australia and standing on one of the peaks at dawn it is easy to understand why. According to the local custodians, the Arrernte (pronounced Arrunder) people the area was created by giant caterpillars who then became immortalised as the spectacular rocky ridges that curve protectively around Alice Springs.

10

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Beyond Excellence Leadership Development Course

1

During 2018/19 nineteen team members completed the Beyond Excellence Leadership Development Course. This Program is part of our ongoing strategy to develop our current and future leaders. The program challenges participants to shift their mindset, gain a deeper understanding of themselves and in turn create an outstanding positive culture, through the art of communicating with influence. They also recognise their own personal brand and what that means within the business. During the program team members are given the opportunity to develop and deliver a presentation of interest to the business, which builds teamwork and creates pride in each and every one of them! Participants finished the program with improved confidence, newfound skills with the ability to lead others in a more positive way.

2

Congratulations to: Lynne Blinman, Alan Montgomery, Antoine Vincent, Thieng Seignarak, Jacqui Downes, Britney Cochrane, Jody Saunders, Kevin Black, Mel Tincknell, Bree Jackson, Lleyton D’Souza, Bailey Ward, Yuba Adhikari, Adam Christiansen, Amy Atkinson, Lindsay Hunter, Tiahnee Kerewaro, Georgina Barry and Maddie Salter.

3 1

Café Blue team members Lesley, Dearna, Nancy, Melissa and Toni winning big at the staff BBQ.

2

Gary, Amanda and Adam help Pink Up Campbelltown as part of the ‘’Pink Up Your Town’’, McGrath Foundation initiative.

3

Operations Manager Leigh Brassil, Olive and Hannah pose with Paddy the Platypus during SES Wear Orange Wednesday.

4

Madison and Madeleine creating cocktails at the Multi Award Winning - Kyūbi Modern Asian Dining.

4 Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

11


Our Community 2019 Safer Celebrations Project: ‘What About Tomorrow?’ Campbelltown Catholic Club shares Community Concerns relating to irresponsible consumption of alcohol. Binge drinking, pre-loading and increased violence all have severe repercussions for the individuals involved and the broader community. As the largest licenced venue in Macarthur we feel compelled to take a leadership role within the community in addressing this growing phenomenon. In 2009 Campbelltown Catholic Club formed a strategic partnership with Youth Solutions. Youth Solutions is a youth drug and alcohol prevention and health promotion charity working with young people 12 – 25 years of age and the broader community in the Macarthur and Wingecarribee regions of NSW to provide a specialist resource in youth drug and alcohol prevention and to develop and maintain drug and alcohol health promotion strategies, in an effort to prevent or reduce alcohol or drug related harm among young people.

Each campaign has shared common objectives; To improve the health, wellbeing and resilience of young people by encouraging safe celebration and promoting a culture of responsibility. Campbelltown Catholic Club has contributed over $500,000 to the Youth Solution ‘Safe Celebrations’ Project over the past 10 years and is committed to ongoing funding of $50,000 per annum. In addition to financial funding the Club also provides FREE soft drink throughout December in support of the ‘Designated Driver’ initiative.

Since that time Campbelltown Catholic Club has worked closely with the Youth Solutions Team and their Youth Advisory Group (YAG) to deliver the ‘Safe Celebrations’ Project each and every year to educate and empower young people, promote safer choices and build a stronger sense of community.

12

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Junior sports Hot Shots Our Junior Sports Hot Shots Program continues to provide grass roots support for local athletes. Every month (from Feb- Oct) the Club awards $500 to the best junior sports story submitted online. Stories can be one of achievement, participation, overcoming adversity or may even be your own “Steven Bradbury” moment where you achieved a positive outcome against all the odds. Congratulations to all our 2018/19 Hot Shot winners: Steven Hall – Basketball, Jakeelie Hook – Athletics, Christian Lipovic – Tee Ball, Alexis Mutiatai Julia Brunt – Track, Amy Sligar – Netball, Mason McPhee – Baseball and Georgia O’Grady-Shorten – Hockey.

24-Hour Fight Against Cancer This year marks the 14th Consecutive year that Campbelltown Catholic Club has been a major supporter of the 24-Hour Fight Against Cancer – Macarthur The Aquafit Health Fitness Wellbeing team lead the charge organising numerous fund-raising activities including the famous duck Dive. This year’s fund-raising target will once again exceed $10,000.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

13


Our Schools Domestic Violence Youth Forum Violence Against Women (Emotional, Financial and Physical) continues to be a major issue across Australia. As a White Ribbon accredited workplace, Campbelltown Catholic Club continually strives to educate and raise awareness around this important issue.

It is important to value and respect yourself in a relationship. You must speak to and to seek help from the people and groups that you feel comfortable with. Thank you for this wonderful Opportunity. – Macquarie Fields High School Student.

During 2018/19 The Club was proud to co-present a Domestic Violence Youth Forum. The free event was attended by over 350 Year 11 students from 6 local high school. The keynote speaker was 2011 Young Australian of The Year recipient and Domestic Violence survivor, Angela Barker.

Ang’s story was so inspiring. I learnt that I need to be aware and take note of even the smallest of signs, that may potentially lead to a domestic violence relationship. Everything Ang said will help me keep myself safe, but also the people I care about. – St Patricks College Student Hearing Angela’s story really inspired me and made me think about a lot of things and be aware of signs of an abusive relationship before it gets to late. – Leumeah High School Student Everybody deserves to be respected in a relationship. – Airds High School Student

Angela is as inspirational young woman who grew up in Benalla in rural Victoria. Anj’s life changed forever in 2002 at the age of 16 when she was brutally bashed to near death by her exboyfriend. She suffered severe brain damage, and the prognosis was that she would remain in a vegetative state for the rest of her life. She spent three years in hospital, rehabilitation and a nursing home before being able to return home, needing full time care. Today Anj educates the public on anti-violence, talking to tens of thousands of Students, Men, Women, Health Workers, Police, Politicians and Prisoners. Her personal strength and courage is inspirational. Her presentation leaves a deep and lasting impression and empowers students to stand up for themselves and understand the red flags associated with Domestic Violence.

14

Photos: Anj’s motto is “Believe in yourself and anything is possible. Her video story, ‘’Loves Me, Loves Me Not’, is recommended viewing. Visit www.anjbarker.com.au

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Foodie School: Youtube Series Serves Up Next Generation Of Foodies Created by Campbelltown Catholic Club, ‘Foodie School’ is an engaging educational YouTube series hosted by dad and award-winning chef, Peter Sheppard. The series aims to help kids and families in Australia enjoy the steps in food preparation and encourages good eating habits by learning the source and importance of cooking with fresh, quality ingredients.

Since launch in April, Campbelltown Catholic Club has been endorsed by local principals, families and guests at the club for its dedication in providing balanced, health-conscious alternatives and promoting a passion for bonding families in the kitchen. Foodie School has also been utilised as a school resource, promoting balanced, healthy eating and wellbeing. Foodie School has had over 130,000 views on YouTube with the first episode garnering 42,000 views alone. Local media, including the radio station C91.3 FM, Campbelltown-Macarthur Advertiser, Greater Sydney Living, Three Little Hines and Social 101 have interviewed Peter Sheppard on the benefits of Foodie School, promoting this to their highly engaged audience with a combined reach of 500,000+.

Foodie School features six, bite-sized three-minute episodes. In each episode Peter is assisted by two students from local primary schools. Together they prepare meals based on simple yet delicious recipes across breakfast, lunch, dinner and dessert. The series was crafted by the club to engage with the local community providing a relatable and educational tool for them to utilise. Its dedicated website includes recipe cards, fun facts and provides a platform to continue engagement to watch, re-watch and share the short episodes when being inspired to cook.

“We’re really passionate about student wellbeing at our school. The social, physical and emotional wellbeing of our students is at the forefront of our school plan. When we got the call from Campbelltown Catholic Club to be involved in this initiative I had to say yes because we’re really passionate about building knowledge in our students around healthy eating.” - Renee Langdon, Deputy Principal Ruse Public School

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

15


Notice of Annual General Meeting

CAMPBELLTOWN CATHOLIC CLUB LIMITED ACN 000 504 110

Notice of Annual General Meeting Notice is hereby given that the Fifty Fourth Annual General Meeting of the Campbelltown Catholic Club Limited ACN 000 504 110 will be held at the Club’s premises, 20-22 Camden Road, Campbelltown on Wednesday 6 November 2019 at 7.00pm.

Notice is also given that nominations for the office of Director must be delivered to the Chief Executive Officer by no later than 8.00pm on 23 October 2019.

A detailed notice about the nomination process is on the Club’s notice board and on the Club’s website.

16

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Business of Annual General Meeting Overview

1. Minutes To confirm the Minutes of the Fifty Third Annual General Meeting held on 7 November 2018.

The three directors positions referred to at item 3 of the agenda are those that fall due to be filled in the normal course under the triennial rule.

4. Ordinary Resolutions

2. Annual Reports To receive and consider:

To consider, and if thought fit, pass the following nine resolutions each of which is proposed as an Ordinary Resolution:

• the report of the Board of Directors for the year ended 30th June 2019;

First Ordinary Resolution

• the Financial Report, including the Income Statement, Balance Sheet, Statement of Cash Flows and Statement of Changes in Equity for the year ended 30th June 2019; • the Auditor’s Report on the Financial Report for the year ended 30th June 2019.

Note to Members: In order to provide an informed and properly researched response, members are requested to lodge questions in respect of the financial statements to the Chief Executive Officer (preferably in writing) 7 days prior to the Annual General Meeting.

3. Election of Directors To elect three (3) Directors to hold office for a period of three (3) years.

Note to Members: Social (Non-Catholic) members as well as General (Catholic) members are entitled to vote in the election for directors. However, Social members have no other voting rights and are not entitled to stand for election to the Board of the Club. The Club’s Constitution provides for three year terms of office for directors with one third of the directors retiring each year and an election being held to fill the vacancies thereby created (this is known as the triennial rule).

That pursuant to the Registered Clubs Act: (a) The Members hereby approve expenditure by the Club not exceeding $175,000 until the Annual General Meeting in 2020 for the following expenses subject to approval by the Board of Directors: (i)

Expenses involved in sponsorship of Affiliated Clubs.

(ii)

Annual Community Leaders Dinner Expenses.

(iii) Presentations to Members or other persons acknowledging services deemed by the Directors as being of benefit to the Club. (iv) Sponsorship of Sporting Events and Sport Persons deemed by the Directors to be of benefit to the Club and/or the Community. (v) Providing complimentary meals and beverages to Life Members. (vi) Reasonable expenses incurred by Directors in travelling by either private or public transport, to and from Directors or other duly constituted Committee Meetings, either within the Club or elsewhere - as approved by the Board, on production of documentary evidence of such expenditure. (vii) The cost of meal and beverage for each Director at a reasonable time before or after a Board or Committee Meeting, on the day of that Meeting. (viii) Reasonable expenses, incurred by Directors, either within the Club or elsewhere, in relation to such other duties including entertainment of

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

17


Business of Annual General Meeting Continued special guests of the Club and other promotional activities approved by the Board, on production of documentary evidence of such expenditure. (b) The Members acknowledge that the benefits in Paragraph (a) above are not available to Members generally, but only for those who are Directors of the Club, Life Members of the Club and those Members directly involved in the above activities.

Second Ordinary Resolution That pursuant to the Registered Clubs Act. (a) The Members hereby approve expenditure by the Club not exceeding $50,000 until the Annual General Meeting in 2020 for the professional development and education of Directors over the following twelve months, including:(i)

The reasonable cost of Directors attending the Registered Clubs Association Annual General Meeting.

(ii)

The reasonable cost of Directors attending Meetings of other Associations of which the Club is a Member.

(iii)

The reasonable cost of Directors attending Seminars, Lectures, Trade Displays, Organised Study Tours, Fact-finding Tours and other similar events, as may be determined by the Board from time to time.

(iv)

(v)

(vi)

The reasonable cost of Directors attending mandatory training under the Registered Clubs Act and Regulations. The reasonable cost of Directors attending other Clubs for the purpose of observing their facilities and methods of operation. Attendance at functions, with spouses where appropriate and required, to represent the Club.

(b) The Members acknowledge that the benefits in Paragraph (a) above are not available to Members generally, but only for those who are Directors of the Club.

18

Notes to Members on First and Second Ordinary Resolutions: • The First Ordinary Resolution is to have members approve expenditure not exceeding $175,000 for expenses incurred by the Club in sponsorships as set out in that resolution, reasonable expenses incurred by the Directors in the performance of their duties and expenses incurred by the Club in providing meals and beverages to Life Members when they attend the Club. This amount is the same as the amount approved by members at the Annual General Meeting in 2018. • The Second Ordinary Resolution is to have members approve expenditure not exceeding $50,000 for expenses incurred by the Club for Directors to attend conferences, seminars, lectures, trade displays and other similar events and to visit clubs to enable the Directors to be kept abreast of current trends and developments which may have a significant bearing on the nature and way in which the Club conducts its business. The sum approved by the Second Ordinary Resolution is also for the costs of mandatory training for Directors under the Registered Clubs Act and Regulations. This amount is the same as the amount approved by members at the Annual General Meeting in 2018. • To be passed, each Ordinary Resolution requires votes from a simple majority of members who, being eligible to do so, are present at the meeting and vote on the resolution. -

The Registered Clubs Act provides that:

-

members who are employees of the Club are not entitled to vote; and

-

proxy voting is prohibited.

Third Ordinary Resolution That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of an honorarium to the director who is President of the Club in the sum of $14,000 (inclusive of the Superannuation Guarantee Levy) in respect of the services performed by the President of the Club between the date of this meeting and the Annual General Meeting in 2020.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Business of Annual General Meeting Continued Fourth Ordinary Resolution That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of an honorarium to the director of the Club who as determined by the Board has the School Liaison portfolio in the sum of $9,500 (inclusive of the Superannuation Guarantee Levy) in respect of the services performed by the director in that portfolio between the date of this meeting and the Annual General Meeting in 2020.

Fifth Ordinary Resolution That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of an honorarium to the director of the Club who as determined by the Board has the portfolio of Vice President in the sum of $9,500 (inclusive of the Superannuation Guarantee Levy) in respect of the services performed by that director in that portfolio between the date of this meeting and the Annual General Meeting in 2020.

• To be passed, each of the Third, Fourth, Fifth and Sixth Ordinary Resolutions requires a vote from a simple majority of members who being eligible to do so vote in person on each resolution at the meeting. • The Registered Clubs Act provides that: -

members who are employees of the Club are not entitled to vote; and

-

proxy voting is prohibited

Seventh Ordinary Resolution That for the purposes of section 41E of the Registered Clubs Act the members hereby declare the Club’s land comprising: • the property known as 1 Old Menangle Road Campbelltown known as Emily Cottage, to be non-core property of the Club.

Notes to Members on Seventh Ordinary Resolution:

Sixth Ordinary Resolution That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club of honorariums to the directors of the Club (other than those in the Third, Fourth and Fifth Ordinary Resolutions) in the sum of $7,000 (inclusive of the Superannuation Guarantee Levy) for each director, in respect of the services performed by each director between the date of this meeting and the Annual General Meeting in 2020.

Notes to Members on the Third, Fourth, Fifth and Sixth Ordinary Resolutions: • The Third, Fourth, Fifth and Sixth Ordinary Resolutions are to approve honorariums for the Board according to the positions held. • Under the Registered Clubs Act directors can be paid honorariums in respect of their services as directors provided that the sum of money representing the honorariums has been approved by a resolution passed at a general meeting of members. • The members entitled to vote on the Third, Fourth, Fifth and Sixth Ordinary Resolutions must be those who are entitled under the Club’s Constitution to vote in the election of the Board.

• The Seventh Ordinary Resolution declare a parcel of Club land to be non core property of the Club. • The resolution is made pursuant to section 41E of the Registered Clubs Act which replaces and effectively repeats what was once section 41J of the Registered Clubs Act. • Section 41E divides land owned or occupied by the Club as being either core property or non-core property. • The difference between core property and non-core property is that section 41E prohibits the Club disposing of any core property unless: (a) the property has been valued by a qualified valuer; and (b) the disposal has been approved at a general meeting of the ordinary members of the Club at which a majority of the votes cast supported the approval; and (c) any sale is by way of public auction or open tender conducted by an independent real estate agent or auctioneer. • Non-core property can be disposed of by the Club in any way and on such terms as may be determined by the Board without having to refer to the members. • A disposal for the purposes of section 41E means a

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

19


Business of Annual General Meeting Continued sale, lease or licence or otherwise a dealing with the property as may be prescribed by the Regulations. • Under the Regulations to the Registered Clubs Act there are a number of exceptions to these requirements but they do not affect the allocation of a club’s land between core and non-core property. • Section 41E defines core property as being any land owned or occupied by the club comprising: (a) the licensed premises of the club; (b) any facility provided by the club for the use of its members and their guests eg. the car parking facility; (c) any other property declared by a resolution passed by a majority of the members present at a general meeting of the ordinary members of the club to be core property of the club. • However, section 41E also goes on to provide that the members of a club may by a resolution passed by a majority of the members present at a general meeting declare any land of the club to be non-core property of the club.

• The Registered Clubs Act provides that: -

members who are employees of the Club are not entitled to vote; and

-

proxy voting is prohibited.

• The Board of the Club unanimously recommend that members vote in favour of each of the Seventh Ordinary Resolution.

5. Life Membership To consider and if thought fit pass the following Resolution:

Resolution That the members hereby confer Life Membership on Mary Ellen Bland (member number 1308)

Notes to Members

• The Club’s licensed premises and the adjoining driveway and car parking facilities are core property of the Club as approved by members at the Annual General Meeting on 7 November 2018

• Mary Ellen Bland (member number 1308) has rendered long and meritorious service to the Club and the Board of Directors consider that it would be a fitting tribute if Life Membership were conferred on her.

• The Club’s Glen Alpine clubhouse (being its licensed premises) and the adjoining golf course are core property of the Club as approved by members at the Annual General Meeting on 7 November 2018

• Mary Ellen has been a member of the Club since November 1980.

• The properties known as Rydges Hotel, Aquafit, Quondong and the vacant block of land on the same title are non-core property of the Club as approved by members at the Annual General Meeting on 7 November 2018 • The property known 316 Queen Street Campbelltown, formerly known as Fishers Ghost Restaurant, is non-core property of the Club as approved by members at the Annual General Meeting on 7 November 2018 • To be passed, each Ordinary Resolution requires votes from a simple majority of members who, being eligible to do so, are present at the meeting and vote on the resolution.

20

• Mary Ellen first joined the Board of Directors in 2003, a position held continuously since that date. • Mary Ellen has made a significant contribution to the Club, having a very strong influence in her school liaison role working tirelessly with the Catholic and non denominational schools in the area during her time as a Director. • The Board has approved the nomination for Life Membership. • To be passed the Resolution requires votes from not less than two-thirds of the members present and voting at the meeting. • Life members, General members and Social members are eligible to vote on the Resolution.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Business of Annual General Meeting Continued Resolution

General Business

That the members hereby confer Life Membership on Leo John Delissen (member number 285)

Note to Members General business is an opportunity for individual members to make comments and recommendations to the Board.

Notes to Members • Leo John Delissen (member number 285) has rendered long and meritorious service to the Club and the Board of Directors consider that it would be a fitting tribute if Life Membership were conferred on him.

By Order of the Board

• Leo has been a member of the Club since January 1969.

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Dated: 28 August 2019

• Leo first joined the Board of Directors in 2006, a position held continuously since that date.

Michael Lavorato

Chief Executive Officer

• Leo has made a significant contribution to the Club, having been a President and Committee member of the Campbelltown Catholic Club Sports Council, and subsequently the Club’s Sports Committee, since 1985. • The Board has approved the nomination for Life Membership. • To be passed the Resolution requires votes from not less than two-thirds of the members present and voting at the meeting. • Life members, General members and Social members are eligible to vote on the Resolution.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

21


Director’s Report For the year ended 30 June 2019 The directors submit their report on Campbelltown Catholic Club Limited (the “Club”) for the year ended 30 June 2019.

Directors The names of the Club’s directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period.

Directors

David James Olsson, MBA, FCPA, JP

Board Meetings eligible to attend

Board Meetings attended

Other Meetings eligible to attend

Other Meetings attended

14

13

15

14

14

10

16

13

14

12

7

6

14

14

8

5

14

14

12

10

14

13

8

7

14

10

3

2

14

8

5

4

14

12

10

9

Finance Manager Director from 2000 President from 2005

Mary Ellen Bland, GAICD, JP Retired School Teacher Director from 2003

Stephen Wayne Carter, JP Company Director Director from 2002 Board Secretary from 2003

David Michael McDonald, CPA General Manager Director from 2002 Treasurer from 2005

Alan Anthony Scott Retired Director from 1988

Leo John Delissen Retired Director from 2005

Peter James Meadows, MBA Company Director Director from 2011

Peter Joseph Crittenden, Dip Law (SAB Lawyer Director from 2015

Andrew James Stapleton General Manager Director from 2016

22

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Director’s Report For the year ended 30 June 2019

Principal activity The principal activity of the Club is that of a Registered Club. In addition, the Club also operates a fitness centre, hotel, convention centre, golf course and clubhouse. There have been no significant changes in the nature of these activities during the year.

Strategies for achieving objectives The Club undertakes a number of strategies to achieve the above objectives. • The Board’s Strategic Plan is monitored and reviewed on a regular basis

Members limited liability

• High level of financial support for community organisations in accordance with the Club’s Charter

The Club is a Company limited by guarantee without any share capital. The Club is a not-for-profit entity. In accordance with the constitution the liability of members in the event of the Club being wound up is limited to $2 per member.

• Diversification of business to reduce the Club’s reliance on gaming revenue • Capital investment in all facilities to ensure they continue to meet member expectations • Growth in revenues through an expansion of our business and offerings

Dividends The Club is prohibited from paying dividends by its Constitution.

Operating results for the year

Measurement of performance The Club measures financial and operational performance using the following key indicators:

The net profit after tax of the Club for year ended 30 June 2019 was $3,587,580 (2018: $4,511,083).

• Trading performance to budget • EBITDA and EBITDARD performance to industry standards

Short and long-term objectives

• Departmental measures such as gross profit and wage percentages

The Club’s short-term and long-term objective is to support Catholic Education, Sport and Culture in the Macarthur area.

• Patronage into the premises

• Members’ feedback

The Club aspires to be the premier entertainment venue in South West Sydney through the provision of high quality facilities and excellence in customer service, supported by quality entertainment, food, beverage, gaming, accommodation and fitness services for members and guests.

• Mystery Shopper reviews • Market research

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

23


Director’s Report For the year ended 30 June 2019

Significant changes in the state of affairs There have been no significant changes in the state of affairs of the Club during the year.

Significant events after the reporting period There have been no significant events occurring after the reporting period which may affect either the Club’s operations or results of those operations or the Club’s state of affairs.

Indemnification and insurance of directors and officers During or since the financial year, the Club has not indemnified or agreed to indemnify any person who is or has been an officer or auditor of the Club or of a related body corporate against any liability. No premiums were payable by the Club in respect of this policy. The Club policy provides against certain liabilities (subject to exclusions) for persons who are or have been officers of the Club or of a related body corporate. The insurance policy does not provide details of the premiums paid in respect of individual officers of the Club.

Indemnification of auditor To the extent permitted by law, the Club has agreed to indemnify its auditor, Ernst & Young (Australia), as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young (Australia) during or since the financial year.

24

Directors’ remuneration No director of the Club has, since the end of the previous financial year, received or become entitled to receive a benefit by reason of a contract made by the director or with a Club in which they have a substantial financial interest, except as detailed in Note 17 - Related party information.

Auditor’s independence declaration The directors have received a declaration from the auditor of Campbelltown Catholic Club Limited. This has been included on page 25. Signed in accordance with a resolution of the directors.

David Michael McDonald Director 28 August 2019

Andrew James Stapleton Director 28 August 2019

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Ernst & Young 200 George Street Sydney NSW 2000 Australia GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555 Fax: +61 2 9248 5959 ey.com/au

Auditor’s Independence Declaration to the Directors of Campbelltown Catholic Club Limited As lead auditor for the audit of Campbelltown Catholic Club Limited for the financial year ended 30 June 2019, I declare to the best of my knowledge and belief, there have been: a) no contraventions of the auditor independence requirements of 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.

Ernst & Young

Daniel Cunningham Partner Sydney 28 August 2019

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

25


Statement of profit or loss and other comprehensive income For the year ended 30 June 2019 Notes

2019 $

2018 $

Sale of goods and services

4.1

66,277,722

65,377,813

Other income

4.2

197,086

108,060

Cost of goods sold

(5,664,290)

(5,675,041)

Poker machine revenue taxes

(9,779,405)

(9,823,805)

(21,260,473)

(19,978,067)

Depreciation expense

(7,957,539)

(7,778,777)

Donations

(1,135,720)

(1,425,824)

Marketing and promotions

(4,588,936)

(4,159,101)

Repairs and maintenance

(2,464,056)

(2,141,925)

Utilities

(2,489,878)

(2,249,504)

Cleaning

(1,147,084)

(1,172,484)

(559,446)

(541,700)

(5,840,401)

(6,028,562)

3,587,580

4,511,083

-

-

3,587,580

4,511,083

-

-

3,587,580

4,511,083

Employee benefit expenses

Finance costs

4.4

4.3

Other expenses Profit before income tax Income tax expense Profit for the year Other comprehensive income Total comprehensive income for the year

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

26

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Statement of financial position As at 30 June 2019 Notes

2019 $

2018 $

3,580,575

2,220,605

Trade and other receivables

825,083

666,983

Inventories

260,080

304,997

432,970

375,324

5,098,708

3,567,909

Assets Current assets Cash

Other assets

6

9

Total current assets Non-current assets Property, plant and equipment

10

133,318,390

124,651,426

Intangible assets

11

4,852,044

4,852,044

Total non-current assets

138,170,434

129,503,470

Total assets

143,269,142

133,071,379

Liabilities Current liabilities Trade and other payables

12

5,379,368

5,194,722

Interest-bearing loans and borrowings

13

158,103

35,923

Provisions

14

2,694,737

2,689,556

8,232,208

7,920,201

Total current liabilities Non-current liabilities Trade and other payables

12

8,166

1,416

Interest-bearing loans and borrowings

13

18,412,747

12,097,587

Provisions

14

497,917

521,651

Total non-current liabilities

18,918,830

12,620,654

Total liabilities

27,151,038

20,540,855

116,118,104

112,530,524

Retained earnings

116,118,104

112,530,524

Total members' equity

116,118,104

112,530,524

Net assets Members' equity

The above statement of financial position should be read in conjunction with the accompanying notes. Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

27


Statement of changes in members’ equity For the year ended 30 June 2019 Retained Earnings $

Total Members’ Equity $

As at 1 July 2017

108,019,441

108,019,441

Profit for the year

4,511,083

4,511,083

-

-

4,511,083

4,511,083

At 30 June 2018

112,530,524

112,530,524

As at 1 July 2018

112,530,524

112,530,524

Profit for the year

3,587,580

3,587,580

-

-

3,587,580

3,587,580

116,118,104

116,118,104

Other comprehensive income Total comprehensive income for the year

Other comprehensive income Total comprehensive income for the year At 30 June 2019

The above statement of changes in members’ equity should be read in conjunction with the accompanying notes.

28

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Statement of cash flows For the year ended 30 June 2019 Note

2019 $

2018 $

72,689,748

71,613,208

(54,262,256)

(58,516,557)

6,474

35,025

(559,446)

(541,700)

17,874,520

12,589,976

234,360

147,814

Acquisition of property, plant and equipment

(16,683,822)

(17,093,775)

Net cash flows used in investing activities

(16,449,462)

(16,945,961)

Repayment of hire purchase principal

(65,088)

(245,006)

Net cash flows used in financing activities

(65,088)

(245,006)

Net increase/(decrease) in cash and cash equivalents

1,359,970

(4,600,991)

Cash and cash equivalents at 1 July

2,220,605

6,821,596

3,580,575

2,220,605

Operating activities Receipts from customers (inclusive of GST) Payments to suppliers and employees (inclusive of GST) Interest received Interest paid Net cash flows from operating activities Investing activities Proceeds from sale of property, plant and equipment

Financing activities

Cash and cash equivalents at 30 June

6

The above statement of cash flows should be read in conjunction with the accompanying notes.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

29


Notes to the financial statements For the year ended 30 June 2019

1. Corporate information The financial statements of Campbelltown Catholic Club Limited (the “Club”) for the year ended 30 June 2019 were authorised for issue in accordance with a resolution of the directors on 28 August 2019.

financial statements of the Club. The Club has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.

AASB 9 Financial Instruments

Campbelltown Catholic Club Limited is a not-for-profit Club limited by guarantee with each member of the Club liable to contribute an amount not exceeding $2.00 in the event of the Club being wound up.

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018 bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting.

The registered office and principal place of business of the Club is 20-22 Camden Road, Campbelltown, NSW, 2560.

The Club has applied AASB 9 retrospectively, with the initial application date of 1 January 2018.

The nature of the operations and principal activities of the Club are described in the Directors’ report.

The classification and measurement requirements of AASB 9 did not have a material impact on the Club but there have been some changes in the disclosures resulting from the adoption of the accounting standard.

2. Summary of significant accounting policies 2.1 Basis of preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards - Reduced Disclosure Requirements and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis, except where stated. Accounting policies adopted by the Club are consistent with those of the previous year, unless otherwise stated. The financial report is presented in Australian dollars ($).

2.2 Changes in accounting policies, disclosures, standards and interpretations New and amended standards and interpretations The Club applied AASB 9 for the first time. The nature and effect of the changes as a result of adoption of these new accounting standards are described below. Several other amendments and interpretations apply for the first time in 2019, but do not have an impact on the

30

Accounting standards and interpretations issued but not yet effective Certain Australian Accounting Standards and Interpretations have recently been issued or amended but are not yet effective and have not been adopted by the Club for the annual reporting year ended 30 June 2019. The directors have not early adopted any of these new or amended standards or interpretations. The directors are in the process of assessing the impact of the applications of AASB 15 Revenue from contracts with customers (effective 1 July 2019) and AASB 16 Leases (effective 1 July 2019) and its amendments to the extent relevant to the financial statements of the Club.

a) Going concern The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. At 30 June 2019, the Club’s total current liabilities exceeded total current assets by $3,133,500 (2018:$4,352,292). Given that significant positive cash flows from operations are being generated and the Club has significant financing activities available, the directors have concluded that the use of the going concern assumption in the preparation of this year’s financial report is appropriate.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Notes to the financial statements For the year ended 30 June 2019 d) Trade and other receivables

2. Summary of significant accounting policies (Continued)

b) Current versus non-current classification The Club presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realised or intended to be sold or consumed in the normal operating cycle • Held primarily for the purpose of trading • Expected to be realised within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle • It is held primarily for the purpose of trading

A receivable represents the Club’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). They are generally due for settlement within 30-60 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional. The Club holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest rate (EIR) method. For trade receivables, the Club applies a simplified approach in calculating expected credit losses (ECLs). Therefore, the Club does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Club has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

e) Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

• It is due to be settled within twelve months after the reporting period, or • There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period The Club classifies all other liabilities as non-current.

c) Cash Cash in the statement of financial position comprises cash at bank and on hand. For the purpose of the statement of cash flows, cash and cash equivalents consist of cash as defined above.

f) Property, plant and equipment Capital work in progress and plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of replacing part of the plant and equipment if the recognition criteria are met. When significant parts of plant and equipment are required to be replaced at intervals, the Club depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in profit or loss as incurred. Land is stated at cost.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

31


Notes to the financial statements For the year ended 30 June 2019 2. Summary of significant accounting policies (Continued) Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Land

not depreciated

Buildings

40 years

Plant and equipment

4 to 15 years

Motor vehicles

4 to 8 years

Course improvement

4 to 25 years

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss and other comprehensive income when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

g) Impairment Non-financial assets and indefinite life intangibles, are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Club conducts an annual internal review of asset values, which is used as a source of information to assess for any indicators of impairment. External factors, such as changes in expected future processes, technology and economic conditions, are also monitored for indicators of impairment. If any indication of impairment exists, an estimate of the assets recoverable amount is calculated. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows from other assets

32

or groups of assets. Non-financial assets that suffered an impairment, are tested or possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.

h) Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The useful lives of intangible assets are assessed as either finite or indefinite. Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

i) Trade and other payables Trade and other payables are carried at amortised cost and due to their short-term nature they are not discounted. They represent liabilities for goods and services provided to the Club prior to the end of the financial year that are unpaid and arise when the Club becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

j) Interest-bearing loans and borrowings All loans and borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Notes to the financial statements For the year ended 30 June 2019 n) Revenue recognition

2. Summary of significant accounting policies (Continued) Borrowings are classified as current liabilities unless the Club has an unconditional right to defer settlement of the liability for a least 12 months after the reporting date.

k) Borrowing costs Borrowing costs are expensed in the period in which they occur.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Club and the revenue can be reliably measured, regardless of when the payment is received. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duty. The specific recognition criteria described below must also be met before revenue is recognised.

Sale of goods

l) Leases The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset (or assets), even if that asset is (or those assets are) not explicitly specified in an arrangement. A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Club is classified as a finance lease. An operating lease is a lease other than a finance lease. Operating lease payments are recognised as an operating expense in the statement of profit or loss and other comprehensive income on a straight-line basis over the lease term.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, trade discounts and volume rebates.

Rendering of services Revenue from the rendering of a service is recognised upon control of a right to receive payment for the services has been passed to the Club.

Other income Other income is recognised upon control of the right to receive the interest payment has been passed to the Club as the interest accrues.

m) Provisions Provisions are recognised when the Club has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

33


Notes to the financial statements For the year ended 30 June 2019 2. Summary of significant accounting policies (Continued)

o) Taxes Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.

Deferred tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except: • When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

The Club offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except: • When the GST incurred on a sale or purchase of assets or services is not payable to or recoverable from the taxation authority, in which case the GST is recognised as part of the revenue or the expense item or as part of the cost of acquisition of the asset, as applicable • When receivables and payables are stated with the amount of GST included The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as part of operating cash flows.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

34

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Notes to the financial statements For the year ended 30 June 2019

3. Significant accounting judgements, estimates and assumptions The preparation of the Club’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Long service leave The liability for long service leave is recognised and measured at the present value of the estimated future cash flows to be made in respect of all employees at reporting date. In determining the present value of the liability, attrition rates and pay increase through promotion and inflation have been taken into account.

Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Club based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Club. Such changes are reflected in the assumptions when they occur.

Impairment of intangibles with indefinite useful lives The Club determines whether intangibles with indefinite useful lives are impaired at least on an annual basis. This requires an estimation of the recoverable amount of the cash generating units to which the intangibles with indefinite useful lives are allocated.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

35


Notes to the financial statements For the year ended 30 June 2019

4. Revenue and expenses 4.1 Sale of goods and services 2019 $

2018 $

Gaming revenue

38,326,562

38,666,299

Liquor revenue

4,928,538

5,021,583

Catering revenue

7,247,423

7,699,746

Aquafit revenue

3,714,111

3,856,932

Rydges revenue

9,473,876

7,545,133

Golf course revenue

882,811

862,529

Entertainment receipts

579,515

542,484

Subscriptions

680,127

672,521

Commissions

341,835

345,451

91,626

153,726

Room and equipment hire Miscellaneous income

11,298

11,409

66,277,722

65,377,813

2019 $

2018 $

190,612

73,035

6,474

35,025

197,086

108,060

2019 $

2018 $

547,618

532,295

11,828

9,405

559,446

541,700

2019 $

2018 $

4.2 Other income Gain on disposal of assets Interest income

4.3 Finance costs Interest expense - bank Interest expense - hire purchase liabilities

4.4 Employee benefits expense Wages and salaries

18,622,641

17,600,928

Superannuation

1,568,618

1,398,514

Payroll tax

1,033,616

963,214

Fringe benefits tax

36

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

35,598

15,411

21,260,473

19,978,067


Notes to the financial statements For the year ended 30 June 2019

5. Income tax The major components of income tax expense for the years ended 30 June 2019 and 2018 are:

Statement of profit or loss and other comprehensive income

2019 $

2018 $

Current income tax charge

-

-

Income tax expense reported in the statement of profit or loss and other comprehensive income

-

-

Current income tax:

Reconciliation of tax expense and the accounting profit multiplied by Australia’s domestic tax rate for 2018 and 2019:

2019 $

2018 $

Accounting profit before income tax

3,587,580

4,511,083

At Club's statutory income tax rate of 30% (2018: 30%)

1,076,274

1,353,325

(1,305,319)

(1,318,405)

1,303,086

1,403,552

173,841

(1,657,371)

(1,247,882)

218,899

-

-

Member only income Member only expenses Effect of mutuality Other items (net) Income tax expense

At 30 June 2019, the Club had accumulated taxable losses with a future income tax benefit of $836,912 (2018:$579,155) carried forward. Future income tax benefits have not been brought to account at reporting date as the directors do not believe that the realisation of the asset is probable.

6. Cash Cash at bank and on hand

2019 $

2018 $

3,580,575

2,220,605

For the purpose of the statement of cash flows, cash comprises the above. For details of commercial bill and bank overdraft facilities, refer to note 13.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

37


Notes to the financial statements For the year ended 30 June 2019

7. Trade and other receivables 2019 $

2018 $

234,834

199,714

(1,750)

(1,750)

233,084

197,964

591,999

469,019

825,083

666,983

Current Trade receivables Expected credit losses

Other receivables

8. Inventories 2019 $

2018 $

Current Liquor stock - at cost Catering stock - at cost

224,878

240,232

35,202

64,765

260,080

304,997

9. Other assets 2019 $

2018 $

Current Prepayments Security deposits

38

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

418,970

361,324

14,000

14,000

432,970

375,324


Notes to the financial statements For the year ended 30 June 2019

10. Property, plant and equipment 2019 $

2018 $

Freehold land

At cost

3,100,343

3,100,343

Buildings

At cost

162,236,913

138,884,963

Accumulated depreciation

(45,849,874)

(42,210,684)

Net carrying amount

116,387,039

96,674,279

Capital work in progress

At cost

776,674

13,676,046

Plant and equipment

At cost

29,098,056

27,947,417

(17,755,876)

(17,880,669)

11,342,180

10,066,748

85,440

92,947

(70,722)

(63,484)

14,718

29,463

At cost

1,574,598

1,392,404

Accumulated depreciation

(682,591)

(597,459)

Net carrying amount

892,007

794,945

At cost

945,491

1,006,154

(140,062)

(696,552)

805,429

309,602

At cost

197,817,515

186,100,274

Accumulated depreciation

(64,499,125)

(61,448,848)

Net carrying amount

133,318,390

124,651,426

Accumulated depreciation Net carrying amount Motor vehicles

At cost Accumulated depreciation Net carrying amount

Course improvements

Leased plant and equipment

Accumulated depreciation Net carrying amount Total property, plant and equipment

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

39


Notes to the financial statements For the year ended 30 June 2019 10. Property, plant and equipment (Continued) Reconciliation of carrying amounts at the beginning and the end of the year

2019 $ Freehold land

Buildings

At 1 July

3,100,343

Net book value at 30 June

3,100,343

At 1 July

96,674,279

Additions

11,307,098

Transfer from work in progress

12,122,134

Depreciation charge for the year

(3,716,472)

Net book value at 30 June Capital work in progress

At 1 July

659,849

Costs written off

(15,567)

Transfers to course improvements Transfers to plant and equipment Net book value at 30 June At 1 July

(4,462) (1,417,058) 776,674 10,066,748 3,842,124

Transfer from work in progress

1,417,058 (43,752)

Depreciation charge for the year

(3,939,998)

Net book value at 30 June

11,342,180

At 1 July Depreciation charge for the year Net book value at 30 June

40

(12,122,134)

Additions Disposals

Motor vehicles

13,676,046

Additions Transfers to buildings

Plant and equipment

116,387,039

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

29,463 (14,745) 14,718


Notes to the financial statements For the year ended 30 June 2019 10. Property, plant and equipment (Continued)

2019 $ Course improvements

At 1 July

794,945

Additions

238,862

Transfer from work in progress Depreciation charge for the year

Leased plant and equipment

4,462 (146,262)

Net book value at 30 June

892,007

At 1 July

309,602

Additions

635,889

Depreciation charge for the year

(140,062)

Net book value at 30 June Total property, plant and equipment

At 1 July

805,429 124,651,426

Additions

16,683,822

Disposals

(43,752)

Costs written off

(15,567)

Depreciation charge for the year Net book value at 30 June

(7,957,539) 133,318,390

Assets pledged as security A mortgage over freehold land and buildings has been granted as security for the commercial bill and bank overdraft facilities. The terms of the mortgage preclude the assets being sold or being used as security for further mortgages without the permission of the mortgage holder. The mortgage also requires buildings that form part of the security to be fully insured at all times. Floating and fixed charges over the assets have also been granted as security for the commercial bill and bank overdraft facilities except for assets under hire purchase which are pledged as security for the associated liability. For details of commercial bill and bank overdraft facilities, refer to note 13.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

41


Notes to the financial statements For the year ended 30 June 2019 10. Property, plant and equipment (Continued)

Valuations The Club’s land, buildings and plant and equipment and Club’s Golf Course leasehold land improvements, buildings and plant and equipment were valued by Global Valuation Services. These valuations were based upon the fair values in an open market of assets held at that time and were as follows:

Validation date

2018 $

Land

22 February 2018

22,900,000

Buildings

22 February 2018

118,725,000

Plant and equipment

22 February 2018

16,393,345

Leasehold land and building improvements

28 February 2018

4,400,000

Plant and equipment

28 February 2018

1,373,715

Club

Club's Golf Course

The directors have not adopted the above valuations for the purposes of the financial statements and are of the opinion that land, buildings and plant and equipment are not being carried at amounts in excess of their recoverable amounts.

42

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Notes to the financial statements For the year ended 30 June 2019

11. Intangible assets 2019 $

2018 $

Poker machine licences

At cost

4,705,044

4,705,044

Holiday accommodation licences

At cost

147,000

147,000

Total intangible assets

At cost

4,852,044

4,852,044

4,852,044

4,852,044

Net carrying amount

Measurement Poker machine entitlements have been determined to be intangible assets with an indefinite useful lives. They are not being amortised but are tested for impairment at least annually. Impairment testing by the directors has concluded that there are no indicators of impairment.

12. Trade and other payables 2019 $

2018 $

Trade payables

2,055,708

2,262,710

Other payables and accrued expenses

2,593,575

2,349,107

688,459

531,519

41,626

51,386

5,379,368

5,194,722

8,166

1,416

Current

Deferred revenue Staff deposits*

Non-current Deferred revenue

Terms and conditions * Staff deposits represent funds held by the Club on behalf of staff under a staff Christmas saving plan. The deposits are non-interest bearing and are expected to be repaid in December 2019.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

43


Notes to the financial statements For the year ended 30 June 2019

13. Interest-bearing loans and borrowings 2019 $

2018 $

158,103

35,923

18,000,000

12,000,000

412,747

97,587

18,412,747

12,097,587

Current Hire purchase liability Non-current Market rent loan Hire purchase liability

Terms and conditions The market rate loan of $25,000,000 (2018: $25,000,000) is a fixed term facility which will mature in December 2021. The facility is a rolling loan facility with loan taken out for periods of 30 to 180 days. Payment of interest and fees only is required during the term of the facility, with the facility subject to half yearly review. Under the terms of the facility, the Club is required to comply with certain financial and non-financial covenants. Interest is charged at variable rates on the outstanding loan totaling $18,000,000 (2018: $12,000,000) at rates prevailing at the time of roll-over. At 30 June 2019, the average implicit interest rate on the outstanding loan was 2.11% (2018:2.13%). Hire purchase agreements have remaining terms ranging from 0.5 to 3.5 years and an average implicit discount rate of 4.73% (2018: 4.73%). Hire purchase liabilities are secured by a charge over the associated assets. The Club has access to a bank overdraft facility of $1,000,000 (2018: $1,000,000). This facility has not been drawn in the current financial year.

14. Provisions 2019 $

2018 $

2,694,737

2,689,556

497,917

521,651

Current Employee entitlements Non-current Employee entitlements

44

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Notes to the financial statements For the year ended 30 June 2019

15. Commitments and contingencies 15.1 Operating lease commitments Future minimum rentals payable under non-cancellable operating leases as at 30 June 2019 are, as follows:

2019 $

2018 $

Within one year

19,612

19,592

After one year but not more than five years

48,793

71,920

Total minimum lease payable

68,405

91,512

2019 $

2018 $

Within one year

183,255

41,466

After one year but not more than two years

183,255

41,466

After one year but not more than five years

257,047

62,199

Total minimum lease payments

623,557

145,131

Future finance charges

(52,707)

(11,619)

Hire purchase liability

570,850

133,512

Current liability

158,103

35,923

Non-current liability

412,747

97,589

570,850

133,512

15.2 Hire purchase contracts

Comprises:

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

45


Notes to the financial statements For the year ended 30 June 2019 15. Commitments and contingencies (Continued)

15.3 Capital commitments Capital expenditure of $nil (2018: $5,632,887) has been contracted at reporting date but not provided in the financial statements.

15.4 Contingent liabilities There were no contingencies as at the reporting date (2018: $nil).

16. Core and non-core property Core property All of the land at Camden Road Campbelltown NSW on the one title comprising the Club’s licensed premises and car parking. All of the land at Golf Course Road Glen Alpine NSW comprising Campbelltown Golf Club clubhouse, car parking and golf course.

Non-core property The Hotel (known as Rydges Campbelltown), the fitness centre (known as Aquafit), the heritage listed building (known as Quondong) and the vacant block of land on Old Menangle Road, being facilities on the same title as the core property at Campbelltown NSW but which cannot be disposed of as being non-core property unless severed from the title by way of subdivision. Property at 316 Queen Street Campbelltown. Property at 1 Old Menangle Road Campbelltown known as Emily Cottage.

17. Related party information 17.1 Directors The directors named in the attached Directors’ report each held office as a director of the Club for the duration of the financial year or for the periods indicated.

17.2 Remuneration of directors Income paid or payable, or otherwise made available, in respect of the financial year to all directors of the Club who were directors during the year:

The above remuneration relates to honorariums paid to the directors during the year.

46

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

2019 $

2018 $

75,000

84,855


Notes to the financial statements For the year ended 30 June 2019 17. Related party information (Continued)

17.3 Directors’ expenses Expenses incurred by directors

2019 $

2018 $

18,198

14,013

17.4 Other related transactions All other transactions entered into during the year with related parties, directors and director-related entities were on terms and conditions no more favourable to those available to other customers and suppliers.

18. Key management personnel The key management personnel who held the following positions had authority and responsibility for planning, directing and controlling the activities of the entity directly or indirectly during the financial year. Directors Chief Executive Officer Chief Financial Officer Chief Marketing Officer General Manager Aquafit Director of Food & Beverage General Manager Rydges

Key management personnel compensation Short-term Post-employment

2019 $

2018 $

1,653,016

1,774,130

135,034

134,656

1,788,050

1,908,786

19. Events after the reporting period There have been no significant events occurring after the reporting period which may affect either the Club’s operations or results of those operations or the Club’s state of affairs.

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

47


Director’s Declaration For the year ended 30 June 2019 In accordance with a resolution of the directors of Campbelltown Catholic Club Limited, we state that: In the opinion of the directors: (a) the financial statements and notes of Campbelltown Catholic Club Limited for the financial year ended 30 June 2019 are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the entity’s financial position as at 30 June 2019 and of its performance for the year ended on that date; and (ii)

complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001;

(b) there are reasonable grounds to believe that the Club will be able to pay its debts as and when they become due and payable.

On behalf of the board

David Michael McDonald

Director

28 August 2019

Andrew James Stapleton Director

28 August 2019

48

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


This page intentionally left blank

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au

49


Campbelltown Catholic Club has commenced a 12-month building program that will completely transform the ground level of the Club. The new foyer, depicted provides a grand sense of arrival and reflects the contemporary textures, finishes and greenery that will be feature throughout the new facilities. Works are due to be completed by October 2020.

50

Campbelltown Catholic Club Annual Report 2019 cathclub.com.au


Profile for Campbelltown Catholic Club

Campbelltown Catholic Club 2019 Annual Report  

Read about our 2019 year. Learn about our community, our people and our Club.

Campbelltown Catholic Club 2019 Annual Report  

Read about our 2019 year. Learn about our community, our people and our Club.

Profile for cathclub