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2020 ANNUAL REPORT


Campbelltown Catholic Club Annual Report 2020

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Index 4

5

6

12

From the President

From the CEO

Notice of AGM

Annual Report

3


From the President David Olsson It is my pleasure to present to the members of Campbelltown Catholic Club Limited our Annual Report for the financial year ending 30 June 2020. This report is to be considered at the Annual General Meeting to be held on Wednesday 4 November 2020 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. It is fair to say the trading result in 2019/20 makes for uncomfortable reading but this can be directly attributed to the fact the Club and most of our associated businesses were closed at the direction of Government for more than 3 months. The only exceptions to this during that period were our hotel and golf course activity which were both severely restricted by Government regulation. Despite this we still managed to make donations totalling some $850,000 continuing our long standing commitment to our community. What a year! During last summer we had devastating bushfires followed by flooding rains. Too many deaths, extensive property damage with many people losing their homes. The one positive through it all was the way the Australian public rallied around and gave generously of their time and funds to help alleviate somewhat the suffering caused to so many. And after all that the COVID-19 virus hit us and we have lived through one of the toughest and scariest periods most of us have experienced. Widespread infection, huge job losses and a recession the likes of which we haven’t seen for many years. Our thoughts and condolences are with all those who suffered loss through these disasters. As I stated above our Club was impacted like the vast majority of leisure and dining businesses. Our entire industry was shut down for 3 months which meant no income was generated in most of our businesses. The Federal Government’s JobKeeper subsidy meant most of our staff had at least some income and our subsequent re-opening has eased the financial pressure a little. Trading is still well below pre-virus levels however and the Board has been working with Management to look at ways to keep costs down. We don’t qualify for JobKeeper after September and so we’ll have to tighten our collective belts for some time unless trading improves markedly.

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During this period renovations to the main Club have been largely completed. You will find more details on outcomes from this project in the report from our CEO. 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 particularly in these tough times. Our staff have unceasingly risen to the occasion, testament to their attitude and dedication to their respective roles. 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 8pm on Wednesday 21 October 2020. Forms can be obtained from the Club’s front desk. As per our Constitution we conduct triennial elections with three positions on the Board up for election this year. A big thankyou to all our members for the loyalty you show to the Campbelltown Catholic Club. Your support will ensure we will come out of this difficult time stronger and once again at the forefront of our industry.


Campbelltown Catholic Club Annual Report 2020

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From the CEO Michael Lavorato It is my privilege to present this report to members, stakeholders and the general community in which Campbelltown Catholic Club proudly operates.

Building works included:

The financial year ended 30 June 2020 resulted in a net loss of $1,761,449. It is undeniable that the second half of the financial year was the most difficult period in which the Club has traded since it first opened its doors in 1968.

• The Dove & Shears Restaurant to replace Café Samba

Profits for the first six months of $2m were effectively wiped out when the COVID-19 Pandemic forced closure of most hospitality businesses in NSW from 23 March 2020. In the three months prior to this date devastating bushfires followed by unprecedented flooding also impacted the Macarthur community very heavily. The Club was able to reopen on 22 June 2020, albeit with significant and ongoing restrictions which continue to constrain the operation of all our businesses.

• The refurbishment of the indoor gaming lounge

Whilst the financial effects have been significant, there has also been a profound impact on the lives of our 350 club employees. COVID-19 resulted in more than 300 of our team being stood down on 23 March and the Club became eligible for the Federal Government JobKeeper program. This support has been vital in staying connected and engaged with staff during this difficult time. Further complicating the COVID-19 impacts was the building and renovation program which commenced late in 2019. The Club was contractually obligated to complete the program, despite the fact very little revenue was being generated. Fortunately, the Club’s strong financial position and the fact that construction work was deemed an essential industry, meant the building works were able to be completed in a timely manner.

• The new Sage café

• A stunning new hotel style foyer • New reception area

• Improved access to ground floor eateries • A new bar and pizza offering to enhance the Embers Charcoal Kitchen experience • Refurbishment of ground floor toilets • Refurbishment of the upstairs pre function spaces The end result is a stunning transformation which I am sure members and guests will be very proud of. At the end of what has been a year without precedent it is appropriate to thank our President David Olsson and fellow Directors who have provided outstanding guidance and encouragement throughout this difficult time. My Management team and Staff have stepped up and faced each obstacle with perseverance, resilience and hard work and I am grateful for their support as always. We all look forward to the future with optimism and will continue to focus our energy on providing members and guests with a memorable experience.

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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 Fifth 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 4 November 2020 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 21 October 2020.

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

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Campbelltown Catholic Club Annual Report 2020

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Business of Annual General Meeting

1. Minutes

in each group has to be equal in number or as nearly as practicable equal in number.

To confirm the Minutes of the Fifty Fourth Annual General Meeting held on 6 November 2019.

At each Annual General Meeting, the terms of office of the group of Directors that was last elected at the Annual General Meeting three years earlier come to an end.

2. Annual Reports

Since 2009 the total number of Elected Directors has been 9, with each group having 3 Directors.

To receive and consider:

However, as a consequence of amendments made to the Constitution which take effect from the Annual General Meeting this year, the total number of Elected Directors reduces from 9 to 7 and as a consequence the three groups will be as follows:

• the report of the Board of Directors for the year ended 30th June 2020; • 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 2020; • the Auditor’s Report on the Financial Report for the year ended 30th June 2020.

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.

Group 1

2 Directors

Group 2

3 Directors

Group 3

2 Directors

Under the rotation system, the terms of office of Directors in Group 2 come to an end at this year’s Annual General Meeting and nominations are called for these positions. If more than three nominations for Group 2 Directors are received by the close of nominations (8:00pm on 21 October 2020), an election by ballot will be conducted. Those three Directors who are declared elected will hold office for three years. The reductions in the number of Directors in Group 1 and Group 3 have been achieved by one Director in each of those Groups resigning with effect from a date shortly before the Annual General Meeting. In accordance with the Constitution their positions will not be filled.

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 Constitution provides for a three year term for Directors on a rotating basis. This is known as the “triennial rule”. To achieve this, since 2009 the total number of Directors has been divided into three groups. The number of Directors

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Business of Annual General Meeting 4. Ordinary Resolutions To consider, and if thought fit, pass the following nine resolutions each of which is proposed as an Ordinary Resolution:

First Ordinary Resolution 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 2021 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 special guests of the Club and other promotional activities approved by the Board, on production of documentary evidence of such expenditure.

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(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 2021 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)

The reasonable cost of Directors attending mandatory training under the Registered Clubs Act and Regulations.

(v)

The reasonable cost of Directors attending other Clubs for the purpose of observing their facilities and methods of operation.

(vi)

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.


Campbelltown Catholic Club Annual Report 2020

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 2019. • 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 2019. • 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 2021.

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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 2021.

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 2021.

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 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 2021.

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.

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Business of Annual General Meeting • 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

Resolution That the members hereby confer Life Membership on Stephen Wayne Carter (member number 444)

Notes to Members • Stephen Wayne Carter (member number 444) 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.

5. Life Membership

• Stephen has been a member of the Club since September 1994.

To consider and if thought fit pass the following Resolution:

• Stephen first joined the Board of Directors in 2002, a position held continuously since that date.

Resolution That the members hereby confer Life Membership on Stephen John Muter (member number 1006)

• Stephen has made a significant contribution to the Club, holding the position of Board Secretary and more recently Chairing the Campbelltown Catholic Club Sports Committee.

Notes to Members

• The Board has approved the nomination for Life Membership.

• Stephen John Muter (member number 1006) 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.

• To be passed the Resolution requires votes from not less than two-thirds of the members present and voting at the meeting.

• Stephen has been a member of the Club since July 1973.

• Life members, General members and Social members are eligible to vote on the Resolution.

• Stephen first joined the Board of Directors in 1986, a position held for five years to 1991. • Stephen has made a significant contribution to the Club, having been one of the original employees in 1968, a member of a number of sub-committees from 1984 to 1986, a Director from 1986 to 1991 and Chief Executive Officer from 1991 to 2006. • 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.

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

By Order of the Board

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Dated: 31 August 2020

Michael Lavorato

Chief Executive Officer

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Campbelltown Catholic Club Annual Report 2020

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Director’s Report For the year ended 30 June 2020 The directors submit their report on Campbelltown Catholic Club Limited (the “Club”) for the year ended 30 June 2020.

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

16

14

8

7

16

14

9

8

16

14

2

2

16

14

5

5

16

15

6

6

16

14

4

4

16

13

2

2

16

14

3

2

16

14

6

5

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 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

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Campbelltown Catholic Club Annual Report 2020

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.

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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

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

Operating results for the year The net loss after tax of the Club for the year ended 30 June 2020 was $1,761,449 (2019: net profit after tax of $3,587,580).

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

• Capital investment in all facilities to ensure they continue to meet member expectations • Growth in revenues through an expansion of our business and offerings

Measurement of performance The financial performance of the Club for the year ended 30 June 2020 has been significantly impacted by the COVID-19 pandemic. The majority of our business operations were either closed or severely impacted from 23 March to 22 June 2020, while restricted trading conditions prior to March 2020, and from reopening in June 2020, continue to constrain the operation. The Club has been unable to operate in an efficient manner due to these constraints. The Club measures financial and operational performance using the following key indicators: • Trading performance to budget • EBITDA and EBITDARD performance to industry standards • Departmental measures such as gross profit and wage percentages • Members’ feedback • Patronage into the premises • Mystery Shopper reviews

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Director’s Report For the year ended 30 June 2020

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 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.

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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 18 - 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 15. Signed in accordance with a resolution of the directors.

David James Olsson Director 31 August 2020

David Michael McDonald Director 31 August 2020


Campbelltown Catholic Club Annual Report 2020

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

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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 the financial report of Campbelltown Catholic Club Limited for the financial year ended 30 June 2020, 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 31 August 2020

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Statement of profit or loss and other comprehensive income For the year ended 30 June 2020

Notes

2020 $

2019$

Revenue from contracts with customers

4.1

48,994,384

66,277,722

Other income

4.2

2,905,308

190,612

Cost of goods sold

(4,045,858)

(5,664,290)

Poker machine revenue taxes

(6,941,475)

(9,779,405)

(19,499,392)

(21,260,473)

(8,947,931)

(7,957,539)

(692,341)

(1,135,720)

Marketing and promotions

(3,107,497)

(4,588,936)

Repairs and maintenance

(2,028,884)

(2,464,056)

Utilities

(2,005,503)

(2,489,878)

(832,948)

(1,147,084)

3,205

6,474

(595,490)

(559,446)

Other expenses

(4,967,027)

(5,840,401)

(Loss)/Profit before income tax

(1,761,449)

3,587,580

-

-

(1,761,449)

3,587,580

-

-

(1,761,449)

3,587,580

Employee benefit expenses

4.3

Depreciation expense Donations

Cleaning Finance Income Finance costs

Income tax expense (Loss)/Profit for the year Other comprehensive income Total comprehensive income for the year

4.4

5

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

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Campbelltown Catholic Club Annual Report 2020

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Statement of financial position As at 30 June 2020

Notes

2020 $

2019 $

Assets Current assets Cash

6

2,271,826

3,580,575

Trade and other receivables

7

1,428,473

825,083

Inventories

8

217,406

260,080

Other assets

9

313,208

432,970

4,230,913

5,098,708

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

10

138,228,326

133,318,390

Intangible assets

11

4,852,044

4,852,044

Right-of-use assets

15

505,231

-

Total non-current assets

143,585,601

138,170,434

Total assets

147,816,514

143,269,142

Liabilities Current liabilities Trade and other payables

12

5,171,164

5,379,368

Lease liabilities

15

235,223

-

Interest-bearing loans and borrowings

13

191,234

158,103

Provisions

14

2,843,947

2,694,737

8,441,568

8,232,208

Total current liabilities Non-current liabilities Trade and other payables

12

-

8,166

Lease liabilities

15

255,440

-

Interest-bearing loans and borrowings

13

24,302,643

18,412,747

Provisions

14

460,208

497,917

Total non-current liabilities

25,018,291

18,918,830

Total liabilities

33,459,859

27,151,038

114,356,655

116,118,104

Retained earnings

114,356,655

116,118,104

Total members' equity

114,356,655

116,118,104

Net assets Members' equity

The above statement of financial position should be read in conjunction with the accompanying notes.

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Statement of changes in members’ equity For the year ended 30 June 2020

Retained Earnings $

Total Members’ Equity $

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

At 30 June 2019

116,118,104

116,118,104

As at 1 July 2019

116,118,104

116,118,104

Loss for the year

(1,761,449)

(1,761,449)

-

-

(1,761,449)

(1,761,449)

114,356,655

114,356,655

Other comprehensive income Total comprehensive income for the year

Other comprehensive income Total comprehensive loss for the year At 30 June 2020

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

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Campbelltown Catholic Club Annual Report 2020

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Statement of cash flows For the year ended 30 June 2020

Note

2020 $

2019 $

54,331,432

72,689,748

(48,861,780)

(60,262,256)

1,692,000

-

3,205

6,474

(595,490)

(559,446)

6,569,367

11,874,520

296,632

234,360

Acquisition of property, plant and equipment

(13,766,396)

(16,683,822)

Net cash flows used in investing activities

(13,469,764)

(16,449,462)

Repayment of hire purchase principal

(177,989)

(65,088)

Proceeds from borrowings

6,000,000

6,000,000

Payment of principal portion of lease liabilities

(230,363)

-

Net cash flows used in financing activities

5,591,648

5,934,912

(1,308,749)

1,359,970

3,580,575

2,220,605

2,271,826

3,580,575

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

Financing activities

Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June

6

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

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Notes to the financial statements For the year ended 30 June 2020

1. Corporate information

2.2 Changes in accounting policies, disclosures, standards and interpretations

The financial statements of Campbelltown Catholic Club Limited (the “Club”) for the year ended 30 June 2020 were authorised for issue in accordance with a resolution of the directors on 31 August 2020.

New and amended standards and interpretations

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.

The Club applied AASB 15 Revenue from Contracts with Customers, AASB 1058 Income of Not-For-Profit Entities and AASB 16 Leases for the first time. The nature and effect of the changes as a result of adoption of these new accounting standards are described below.

The registered office and principal place of business of the Club is 20-22 Camden Road, Campbelltown, NSW, 2560. The nature of the operations and principal activities of the Club are described in the Directors’ report.

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. Australian Accounting Standards contain requirements specific to not-for-profit entities, including standards AASB 116 Property, Plant and Equipment, AASB 138 Intangible Assets, AASB 136 Impairment of Assets, AASB 1004 Contributions and AASB 1058 Income for Not-For-Profit Entities. 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 ($).

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Several other amendments and interpretations apply for the first time in 2020, but do not have an impact on the 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 15 Revenue from Contracts with Customers AASB 15 supersedes AASB 18 Revenue and related Interpretations and it applies, with limited exceptions, to all revenue arising from contracts with its customers. AASB 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. AASB 15 requires entities to exercise judgement, taking into consideration all of the relevant facts and circumstances when applying each step of the model to contracts with their customers. The standard also specifies the accounting for the incremental costs of obtaining a contract and the costs directly related to fulfilling a contract. In addition, the standard requires extensive disclosures. The Club adopted AASB 15 using the modified retrospective method of adoption with the date of initial application of 1 July 2019. Under this method, the standard can be applied either to all contracts at the date of initial application or only to contracts that are not completed at this date. The Club elected to apply the standard to all contracts as at 1 July 2019.


Campbelltown Catholic Club Annual Report 2020

AASB 1058 Income of Not-For-Profit Entities AASB 1058 will defer income recognition in some circumstances for not-for-profit entities, particularly where there is a performance obligation or any other liability. In addition,certain components in an arrangement, such as donations, may be separated from other types of income and recognised immediately. The standard also expands the circumstances in which not-for-profit entities are required to recognise income for goods and services received for consideration that is significantly less than the fair value of the asset principally to enable the entity to further its objectives (discounted goods and services). The Club adopted AASB 1058 using the modified retrospective method of adoption. The classification and measurement requirements of AASB 1058 did not have a material impact in the Club, but there have been some changes in the disclosures resulting from the adoption of the accounting standard.

AASB 16 Leases AASB 16 supersedes AASB 117 Leases and it replaces AASB 117 Leases, AASB Interpretation 4 Determining whether an Arrangement contains a Lease, AASB Interpretation 115 Operating Leases-Incentives and AASB Interpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases on the statement of financial position. The Club adopted AASB 16 using the modified retrospective method of adoption, with the date of initial application of 1 July 2019. Under this method, the standard is applied retrospectively with the cumulative effect on initially applying the standard recognised at the date of initial application. The Club elected to use the transition practical expedient to not reassess whether a contract is, or contains, a lease at 1 July 2019. Instead, the Club applied the standard only to contracts that were previously identified as leases applying AASB 117 and AASB Interpretation 4 Determining whether an Arrangement contains a Lease at the date of initial application.

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The Club has lease contracts for various items of equipment. Before the adoption of AASB 16, the Club classified each of its leases (as lessee) at the inception date as either a finance lease or an operating lease. Upon adoption of AASB 16, the Club applied a single recognition and measurement approach for all leases except for short-term leases and leases of low-value assets. The standard provides specific transition requirements and practical expedients, which have been applied by the Club.

Leases previously accounted for as operating leases The Club recognised right-of-use assets and lease liabilities for those leases previously classified as operating leases, except for short-term leases and leases of low-value assets. The rightof-use assets for most leases were recognised based on the carrying amount as if the standard had always been applied, apart from the use of incremental borrowing rate at the date of initial application. In some leases, the right-of-use assets were recognised based on the amount equal to the lease liabilities, adjusted for any related prepaid and accrued lease payments previously recognised. Lease liabilities were recognised based on the present value of the remaining lease payments, discounted using the incremental borrowing rate at the date of initial application. The Club also applied the available practical expedients wherein it: • Used a single discount rate to a portfolio of leases with reasonably similar characteristics • Relied on its assessment of whether leases are onerous immediately before the date of initial application • Applied the short-term leases exemptions to leases with lease term that ends within 12 months of the date of initial application • Excluded the initial direct costs from the measurement of the right-of-use asset at the date of initial application • Used hindsight in determining the lease term where the contract contained options to extend or terminate the lease

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Notes to the financial statements For the year ended 30 June 2020 b) Current versus non-current classification

The lease liabilities as at 1 July 2019 can be reconciled to the operating lease commitments as of 30 June 2019, as follows: $ Operating lease commitments as at 30 June 2019 Weighted average incremental borrowing rate as at 1 July 2019

68,405 2.11%

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;

Discounted operating lease commitments as at 1 July 2019

59,151

• Held primarily for the purpose of trading;

Lease liabilities as at 1 July 2019

59,151

• Expected to be realised within twelve months after the reporting period, or

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 2020. The Club intends to adopt these new and amended standards and interpretations, when they become effective.

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 2020, the Club’s total current liabilities exceeded total current assets by $4,210,655 (2019:$3,133,500). Given that significant positive cash flows from operations are being generated and the Club has significant financing facilities available (Note 13), the directors have considered the uncertainties and business impact arising from COVID-19 and concluded that the use of the going concern assumption in the preparation of this year’s financial report is appropriate.

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• 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; • Held primarily for the purpose of trading; • 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.

d) Trade and other receivables 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


Campbelltown Catholic Club Annual Report 2020

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.

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.

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Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Land Buildings Plant and equipment Motor vehicles Course improvement

not depreciated 40 years 4 to 15 years 4 to 8 years 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 or groups of assets. Non-financial assets that suffered an impairment, are tested for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed.

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Notes to the financial statements For the year ended 30 June 2020 h) Intangible assets

k) Borrowing costs

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.

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

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.

The Club assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

i) Trade and other payables Trade and other payables initially recognised at fair value and subsequently are carried at amortised cost. 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. 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.

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l) Leases For the year ended 30 June 2020

Club as a lessee The Club applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Club recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

(i) Right-of-use assets The Club recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-ofuse assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: • Equipment

3 to 5 years

If ownership of the leased asset transfers to the Club at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of-use assets are also subject to impairment. Refer to the accounting policies in section (g) Impairment.


Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

(ii) Lease liabilities

For the year ended 30 June 2019

At the commencement date of the lease, the Club recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Club and payments of penalties for terminating the lease, if the lease term reflects the Club exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

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.

In calculating the present value of lease payments, the Club uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

(iii) Short-term leases and leases of low-value assets The Club applies the short-term lease recognition exemption to its short-term lease of Campbelltown Golf Club premises (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of equipment that are considered to be low value. Lease payments on short-term leases and leases of lowvalue assets are recognised as expense on a straight-line basis over the lease term.

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.

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.

n) Revenue from contracts with customers For the year ended 30 June 2020 Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Club expects to be entitled in exchange for those goods or services. The Club has generally concluded that it is the principal in its revenue arrangements and that it typically controls the goods or services before revenue transferring them to the customer.

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Notes to the financial statements For the year ended 30 June 2020 Contract liabilities A contract liability is the obligation to transfer goods or services to a customer for which the Club has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Club transfer goods and services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Club performs under the contract.

For the year ended 30 June 2019 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 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.

o) Other income Government grants The government introduced a JobKeeper Payment scheme to support businesses significantly affected by the Coronavirus pandemic to help keep more Australians in jobs. The JobKeeper Payment is available to eligible employers to enable them to

26

pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight. Eligible employers are reimbursed a fixed amount of $1,500 per fortnight for each eligible employee from 30 March 2020, for up to 13 fortnights. Employers are required to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This is paid to the employer in arrears each month by the Australian Taxation Office (ATO). If employers do not continue to pay their employees for each pay period, they cease to qualify for the JobKeeper payment. The Club is eligible for this payment and has claimed a total amount of $2,733,000 as at 30 June 2020. The Jobkeeper Payment scheme is accounted for in line with AASB 1058 Income of Not-for-Profit Entities. The Club has recognised a receivable and income when it obtained control over the funding.

p) Finance income Interest income is recognised upon control of the right to receive the interest payment has been passed to the Club as the interest accrues.

q) 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:


Campbelltown Catholic Club Annual Report 2020

• 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. 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. 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.

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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.

r) Comparatives Where necessary, comparative figures have been reclassified to conform with changes in presentation in the current year.

27


Notes to the financial statements For the year ended 30 June 2020

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.

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.

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

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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.

Leases - Estimating the incremental borrowing rate The Club cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Club would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Club ‘would have to pay’, which requires estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions) or when they need to be adjusted to reflect the terms and conditions of the lease (for example, when leases are not in the subsidiary’s functional currency). The Club estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates (such as the subsidiary’s stand-alone credit rating).


Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

4. Revenue and expenses 4.1 Disaggregated revenue information Type of goods or services

2020 $

2019 $

Gaming

27,683,685

38,326,562

Catering

6,928,853

7,247,423

Rydges Hotel

5,353,084

9,473,876

Liquor

4,114,559

4,928,538

Aquafit gym

2,682,687

3,714,111

Golf course

810,814

882,811

Subscriptions

601,368

680,127

Entertainment

405,495

579,515

Commissions

248,609

341,835

Room and equipment hire

161,365

91,626

3,865

11,298

Others Total revenue from contracts with customers

48,994,384

Sale of goods and services

66,277,722

Timing of revenue recognition Transferred at a point in time

36,382,892

Transferred over time

12,611,492

Total revenue from contracts with customers

48,994,384

All revenue from contracts with customers are earned within New South Wales, Australia.

4.2 Other income Gain on disposal of assets Government Grants

2020 $

2019 $

172,308

190,612

2,733,000

-

2,905,308

190,612

2020 $

2019 $

17,299,750

18,622,641

1,335,267

1,568,618

836,901

1,033,616

27,474

35,598

19, 499,392

21,260,473

4.3 Employee benefits expense Wages and salaries Superannuation Payroll tax Fringe benefits tax

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Notes to the financial statements For the year ended 30 June 2020 4. Revenue and Expenses (Continued)

4.4 Finance costs 2020 $ Interests on lease liabilities

2019 $

15,214

-

553,425

547,618

26,851

11,828

595,490

559,446

2020 $

2019 $

Current income tax expense

-

-

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

-

-

Interest expense - bank Interest expense - hire purchase liabilities

5. Income tax The major components of income tax expense for the years ended 30 June 2020 and 2019 are:

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 2019 and 2020:

2020 $

2019 $

(1,761,449)

3,587,580

At Club’s statutory income tax rate of 30% (2019: 30%)

(528,435)

1,076,274

Member only income

(952,526)

(1,305,319)

Member only expenses

963,543

1,303,086

Effect of mutuality

(36,444)

173,841

Other items (net)

553,862

(1,247,882)

-

-

Accounting (loss)/profit before income tax

Income tax expense

At 30 June 2020, the Club had accumulated taxable losses with a future income tax benefit of $1,479,032 (2019:$836,912) 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.

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Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

6. Cash 2020 $

2019 $

2,271,826

3,580,575

2020 $

2019 $

Trade receivables

47,860

234,834

Expected credit losses

(1,750)

(1,750)

46,110

233,084

1,382,363

591,999

1,428,473

825,083

2020 $

2019 $

187,691

224,878

29,715

35,202

217,406

260,080

2020 $

2019 $

299,208

418,970

14,000

14,000

313,208

432,970

Cash at bank and on hand 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.

7. Trade and other receivables Current

Other receivables

8. Inventories Current Liquor stock - at cost Catering stock - at cost

9. Other assets Current Prepayments Security deposits

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Notes to the financial statements For the year ended 30 June 2020

10. Property, plant and equipment 2020 $

2019 $

Freehold land

At cost

3,100,343

3,100,343

Buildings

At cost

164,271,078

162,236,913

Accumulated depreciation

(49,971,338)

(45,849,874)

Net carrying amount

114,299,740

116,387,039

Capital work in progress

At cost

8,879,338

776,674

Plant and equipment

At cost

31,340,484

29,098,056

(20,170,130)

(17,755,876)

11,170,354

11,342,180

85,440

85,440

(84,431)

(70,722)

1,009

14,718

At cost

1,623,266

1,574,598

Accumulated depreciation

(845,724)

(682,591)

777,542

892,007

At cost

-

945,491

Accumulated depreciation

-

(140,062)

Net carrying amount

-

805,429

At cost

209,299,949

197,817,515

Accumulated depreciation

(71,071,623)

(64,499,125)

Net carrying amount

138,228,326

133,318,390

Accumulated depreciation Net carrying amount Motor vehicles

At cost Accumulated depreciation Net carrying amount

Course improvements

Net carrying amount Leased plant and equipment

Total property, plant and equipment

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Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

10. Property, plant and equipment (Continued) Reconciliation of carrying amounts at the beginning and the end of the year

2020 $ Freehold land

Buildings

At 1 July

3,100,343

Net book value at 30 June

3,100,343

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

Capital work in progress

Plant and equipment

At 1 July

(4,121,464) 114,299,740 776,674 8,102,664

Net book value at 30 June

8,879,338

At 1 July Transfer from leased plant and equipment Disposals

11,342,180 3,580,899 805,429 (124,324)

Depreciation charge for the year

(4,433,830)

Net book value at 30 June

11,170,354

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

Course improvements

2,034,165

Additions

Additions

Motor vehicles

116,387,039

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

14,718 (13,709) 1,009 892,007 48,668 (163,133) 777,542

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Notes to the financial statements For the year ended 30 June 2020 10. Property, plant and equipment (Continued) 2020 $ Leased plant and equipment

At 1 July Transfer to plant and equipment

805,429 (805,429)

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

At 1 July

133,318,390

Additions

13,766,396

Disposals

(124,324)

Depreciation charge for the year Net book value at 30 June

(8,732,136) 138,228,326

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.

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Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

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.

35


Notes to the financial statements For the year ended 30 June 2020

11. Intangible assets 2020 $

2019 $

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 2020 $

2019 $

537,229

2,055,708

4,063,340

2,593,575

537,975

688,459

32,620

41,626

5,171,164

5,379,368

-

8,166

Current Trade payables Other payables and accrued expenses 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 2020.

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Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

13. Interest-bearing loans and borrowings 2020 $

2019 $

191,234

158,103

24,000,000

18,000,000

302,643

412,747

24,302,643

18,412,747

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

Terms and conditions The market rate loan of $30,000,000 (2019: $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 totalling $24,000,000 (2019: $18,000,000) at rates prevailing at the time of roll-over. At 30 June 2020, the average implicit interest rate on the outstanding loan was 0.16% (2019:2.11%). Hire purchase agreements have remaining terms ranging from 0.5 to 3.5 years and an average implicit discount rate of 4.73% (2019: 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 (2019: $1,000,000). This facility has not been drawn in the current financial year.

14. Provisions 2020 $

2019 $

2,843,947

2,694,737

460,208

497,917

Current Employee entitlements Non-current Employee entitlements

37


Notes to the financial statements For the year ended 30 June 2020

15. Leases Club as a lessee The Club has lease contracts for various items of equipment and other equipment used in its operations. Leases of equipment generally have lease terms between 3 and 5 years. The Club’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Club is restricted from assigning and subleasing the leased assets and some contracts require the Club to maintain certain financial ratios. There are several lease contracts that include extension and termination options and variable lease payments, which are further discussed below. The Club also has certain leases of machinery with lease terms of 12 months or less and leases of office equipment with low value. The Club applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period: As at 1 July 2019 (On adoption of AASB 16) Additions Depreciation expense

Equipment $ 59,151 661,875 (215,795)

As at 30 June 2020

505,231

Set out below are the carrying amounts of lease liabilities and the movements during the period:

2020 $

As at 1 July 2019 (On adoption of AASB 16) Additions Accretion of interest Payments

59,151 661,875 15,214 (245,577)

As at 30 June 2020

490,663

Current

235,223

Non-current

255,440

The following are the amounts recognised in profit or loss:

2020 $

Depreciation expense of right-of-use assets

215,795

Interest expense on lease liabilities

15,214

Expense relating to short-term leases

36,158

Expense relating to leases of low-value assets Total amount recognised in profit or loss

4,036 271,203

The Club had total cash outflows for leases of $281,735 in 2020. The Club also had non-cash additions to right-of-use assets and lease liabilities of $661,875 in 2020.

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Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

16. Commitments and contingencies 16.1 Lease commitments Future minimum rentals payable under non-cancellable operating leases as at 30 June 2019 are, as follows:

2019 $ Within one year

19,612

After one year but not more than five years

48,793

Total minimum lease payable

68,405

The Club has no lease contracts that have not yet commenced as at 30 June 2020.

16.2 Hire purchase contracts The future lease payments for these non-cancellable lease contracts are $211,591 within one year and $316,083 after one year but not more than five years.

2020 $

2019 $

Within one year

211,591

183,255

After one year but not more than two years

190,858

183,255

After one year but not more than five years

125,225

257,047

Total minimum lease payments

527,674

623,557

Future finance charges

(33,797)

(52,707)

Hire purchase liability

493,877

570,850

Current liability

191,234

158,103

Non-current liability

302,643

412,747

493,877

570,850

Comprises:

39


Notes to the financial statements For the year ended 30 June 2020 16. Commitments and contingencies (Continued)

16.3 Capital commitments Capital expenditure of $4,424,907 (2019: $nil) has been contracted at reporting date but not provided in the financial statements

16.4 Contingent liabilities There were no contingencies as at the reporting date (2019: $nil).

17. 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. Property at 3 Old Menangle Road Campbelltown.

18. Related party information 18.1 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.

18.2 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.

40

2020 $

2019 $

56,250

75,000


Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

18. Related Party Information (Continued)

18.3 Directors’ expenses Expenses incurred by directors

2020 $

2019 $

17,936

18,198

18.4 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.

19. 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

2020 $

2019 $

1,554,177

1,653,016

114,517

135,034

1,668,694

1,788,050

20. 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.

41


Notes to the financial statements For the year ended 30 June 2020 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 2020 are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Club’s financial position as at 30 June 2020 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 James Olsson Director

31 August 2020

David Michael McDonald

Director

31 August 2020

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Campbelltown Catholic Club Annual Report 2020

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

cathclub.com.au

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

Independent Auditor's Report to the Members of Campbelltown Catholic Club Limited Opinion We have audited the financial report of Campbelltown Catholic Club Limited (the Company), which comprises the statement of financial position as at 30 June 2020, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including: a)

giving a true and fair view of the Company's financial position as at 30 June 2020 and of its financial performance for the year ended on that date; and

b)

complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information is the directors’ report accompanying the financial report. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation ACN 004 860 860

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2

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation ACN 004 860 860

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Campbelltown Catholic Club Annual Report 2020

cathclub.com.au

3

Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

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

Ernst & Young

Daniel Cunningham Partner Sydney 31 August 2020

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation ACN 004 860 860

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