Campbelltown Catholic Club Annual Report 2021

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Campbelltown Catholic Club Annual Report 2021

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Index 4

5

6

18

From the President

From the CEO

Notice of AGM

Annual Report

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From the President 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 2021. This report is to be considered at the Annual General Meeting to be held on Wednesday 1st December 2021 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 $6.6m is an exceptional result in light of the hurdles presented by the first real pandemic in 100 years and reflects a very pleasing return on our investment in upgraded Club facilities. This profit was achieved in the period between shutdowns and was fortuitous given the almost certain negative impact on our 2021/22 result of the latest lockdown. Members should keep in mind that the 2021/22 result will be severely impacted by that forced 2021 pandemic lockdown which has seen our club and supporting businesses closed for a period of more than 3 months. At the time of writing this report we had just reopened, but I am hopeful the appetite for our members to enjoy some old freedoms will see trading return to somewhere near past levels. In 2020/21 we were once more able to provide a substantial level of donations to the community. A cash figure of over $1.1m 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. Members will be aware of renovations to our Club which were completed in late 2020. These works included the modernisation of our internal gaming facility, a new restaurant in the Dove and Shears, an upgrading of Embers restaurant, a new café in Sage and significant work to our foyer. Several other investment options are being considered for our precinct and further information will flow if and when these come to fruition.

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Meanwhile at the Golf Club the course has been our only business largely unaffected by lockdowns, although there were plenty of restrictions imposed on us. Golf play has seen a surge in interest and we now have quite a few new members. The course itself is looking great with a lot of work having been done over the past few months. A big thank you to our greens staff for their tireless efforts during trying times. Our popular golf professional, Scott Martyn is also doing a great job and is working hard to provide the kind of services members want. 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. The impact on all involved in the running of our Club has been negative to varying degrees and in varying ways. The continuing pursuit of excellence by our staff is testament to their attitude and dedication to their respective roles. I am proud of their loyalty to our Club. 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 8pm on Wednesday 17th November 2021. Forms can be obtained from the Club’s front desk together with an information pack detailing legal obligations and responsibilities. A big thankyou to all our members for the loyalty you show to the Club. 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 2021

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From the CEO Michael Lavorato It is my privilege to present this 2021 Annual Report of Campbelltown Catholic Club. The financial result of the club for the year ended 30th June 2021 has again been significantly impacted by the ongoing Covid-19 Pandemic. After recording a loss of $1,761,499 in 2020 the club rebounded successfully in 2021 to record a profit of $6,579,664. This turnaround can be attributed to all businesses being able to trade uninterrupted after re-opening on 22 June 2020. Unfortunately, this positive result will not be repeated in the 2022 financial reporting year as the re-emergence of Covid-19 and the “Delta” strain again forced the closure of the club on the 26 June 2021. At the time of writing, operations recommenced on 11 October after a mandated shutdown which lasted 106 days. The lockdown necessitated the standing down of over 350 staff members employed by the Club, Aquafit, Rydges and the Golf Club. It has certainly been a stressful period and the efforts of the Board and Management have been directed to ensure the health and well being of the team via regular engagement and check-ins. During the lockdown staff were consulted and encouraged to get vaccinated in line with NSW Government directives. Upon reopening it is pleasing to report that very few team members remain unvaccinated. We look forward to the easing of further restrictions and a more stable environment and a return to normalcy within the community.

It is appropriate at the end of what has been undeniably the most turbulent period for many decades to reflect and acknowledge the resilience of the club, the staff and the support of members and the community at large. Years of careful financial stewardship and outstanding corporate governance has ensured the club has emerged from the crisis in a strong position to take advantage of the opportunities the expected economic and social recovery will provide. I am proud of the efforts of my managers and staff who have faced each obstacle with skill, hard work and perseverance. I am proud to lead a team that serves the members and community with passion and care. Finally, I would like to thank our President David Olsson and the Board of Directors for their guidance and unwavering support and encouragement. We all look forward to a more stable, kinder and prosperous year ahead.

Despite these challenges there were many notable highlights during the year. In October 2020 the most recent renovations were completed which included a stunning transformation of the foyer, the construction of Sage Cage and the Dove and Shears and the refurbishment of the gaming lounge. Member feedback to the renovation has been extremely positive. Moving forward, plans are advanced for refreshment of Kings Food Court with work expected to commence in early 2022. It is also pleasing to report that a Memorandum of Understanding for a proposed Amalgamation with Campbelltown Bowling Club was signed on 14 October 2021. Members of both clubs will be consulted and then asked to approve this amalgamation over the coming months.

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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 Sixth 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 1 December 2021 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 17 November 2021. 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 2021

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Business of Annual General Meeting

1. Minutes

3. Election of Directors

To confirm the Minutes of the Fifty Fifth Annual General Meeting which was held on 4 November 2020.

To elect two (2) Directors to hold office for a period of three (3) years.

2. Annual Reports

Note to Members:

To receive and consider:

Life members, General members and Social members can vote in the election of the Board.

• the report of the Board of Directors for the year ended 30th June 2021;

However, only Life members and General members can nominate for and be elected to the Board.

• 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 2021;

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

• the Auditor’s Report on the Financial Report for the year ended 30th June 2021.

Note to Members: Copies of the abovementioned reports are available on request at the Club’s reception and they can be viewed on and downloaded from the Club’s website. In order to provide an informed and properly researched response, members are requested to lodge written questions in respect of the abovementioned reports to the Chief Executive Officer 7 days prior to the Annual General Meeting. If questions are not submitted in this manner, the Club may not be able to provide a complete answer at the Annual General Meeting.

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. Under the rotation system, the terms of office of the two (2) Directors in Group 3 come to an end at this year’s Annual General Meeting and nominations are called for these two (2) positions. If more than two nominations for Group 3 Directors are received by the close of nominations (8:00pm on 17 November 2021), an election by ballot will be conducted. Those two Directors who are declared elected will hold office for three years.

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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 from the date of this meeting until the Annual General Meeting in 2022 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 from the date of this meeting until the Annual General Meeting in 2022 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 2021

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 2021. • 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 2021. • To be passed, each of the First and Second Ordinary Resolutions requires votes from a simple majority of members who, being eligible to do so, are present at the meeting and vote on the resolution. • Only Life members and General members can vote on the First and Second Ordinary Resolutions. • The Registered Clubs Act provides that: -

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

-

proxy voting is prohibited.

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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 2022.

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 2022.

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 2022.

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 2022.

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Business of Annual General Meeting 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 directors on the Board according to the positions held by those directors. • 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. • Life members, General members and Social members can vote on the Third, Fourth, Fifth and Sixth Ordinary Resolutions.. • 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

5. Special Resolution To consider, and if thought fit, pass the following resolution which is proposed as a Special Resolution:

(d) deleting from Rule 12 the words “Certificate of Registration under Part II of the Registered Clubs Act” and inserting the words “club licence under the Liquor Act”. (e) deleting from Rule 12 the words “such a certificate” and inserting the words “such a licence”. (f) deleting Rule 17(a) and renumbering Rule 17(b) as Rule 17. (g) inserting the following new Rule 23(e): (e) “The Board shall have the power to transfer a full member (as defined in the Registered Clubs Act) who ceases to hold the necessary qualifications for their existing category of membership (including without limitation, a Junior member who has attained the age of eighteen (18) years) to another category of membership of the Club for which the full member (as defined in the Registered Clubs Act) has the necessary qualifications.” (h) deleting from Rule 25 the words “within six (6) weeks from the date of lodging the nomination form with the Secretary or should that person’s application for membership be refused (whichever is sooner)”. (i) deleting Rules 27(b) and (c) and inserting the following new Rules 27(b) and (c); “(b) Honorary members who are full members (as defined in the Registered Clubs Act) of the Club shall be entitled to the rights and privileges of the category of membership of which they are a full member (as defined in the Registered Clubs Act). (c)

That the Constitution of Campbelltown Catholic Club Limited be amended by: (a) inserting the following new Rule 4A: “4A Every member is bound by and must comply with the Constitution and By-laws of the Club and any other applicable determination, resolution or policy which may be made or passed by the Board.” (b) deleting from Rules 6(d) and 53(j) the figure “41J” and inserting the figure “41E”. (c) deleting from Rule 6(h) the words “Certificate of Registration under the Registered Clubs Act” and inserting the words “club licence under the Liquor Act”.

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Honorary members who are not full members (as defined in the Registered Clubs Act) of the Club shall be entitled to the social facilities and amenities of the Club as determined by the Board from time to time and to introduce guests into the Club but they shall not be entitled to attend or vote at any meeting of the Club, nominate or be elected to the Board or any office in the Club or participate in the management, business and affairs of the Club in any way”.

(j) inserting into Rules 27(d)(i) and 29(f)(i) the words “or the surname and initials” after the words “name in full”. (k)

deleting Rules 29(c) and (d) and inserting the following new Rules 29(c) and (d):


Campbelltown Catholic Club Annual Report 2021

“(c)

Temporary members shall be entitled to the social facilities and amenities of the Club as determined by the Board from time to time and subject to Rule 45, to introduce guests into the Club.

(d)

The Secretary or senior employee then on duty may refuse a person admission to the Club as a Temporary member and/or terminate the membership of any Temporary member at any time without notice and without having to provide any reason”.

chairperson (in their absolute discretion) may exclude the member charged from the hearing and continue to consider and deal with the charge in his or her absence.” (q) inserting the following new Rules 42(a)(vii) and (viii): “(vii) The Board may authorise the Secretary and other persons to attend the meeting to assist the Board in considering and dealing with the charge but those persons cannot vote at the meeting. (viii) The outcome of disciplinary proceedings shall not be invalidated or voided if the procedure set out in Rule 42(a) is not strictly complied with provided that there was no substantive injustice for the member charged.”

(l) inserting into Rules 33, 36 and 40 the words “, Junior member” after the words “General member”. (m) inserting the following new Rule 36(c): “(c)

The Secretary or senior employee then on duty may refuse an applicant for membership admission to the Club or remove an applicant for membership from the Club’s premises at any time without notice and without having to provide any reason.”

(n) deleting Rule 41 and the heading preceding that Rule and inserting the following new heading and Rule 41: “NOTIFICATION TO CLUB REGARDING CHANGE IN MEMBER’S DETAILS 41. Every member must advise the Secretary of any change to their personal details (including their address, email address and telephone number) within seven (7) days of the change to their personal details.”

(r) deleting from Rule 42(b) the words “or for thirty days whichever is sooner”. (s) inserting at the end of Rule 42(c)(iii) the words “, Liquor Act or any other applicable legislation”. (t) inserting into Rule 42(c)(v) the words “or any other employee of the Club exercising this power” after the words “substance that the Secretary”. (u) inserting into Rule 42(c)(vii) the words “, by law” after the words “Liquor Act”. (v) inserting the following new Rules 42(f) and (g) and renumbering the remaining provisions of Rule 42 accordingly:

(o) deleting from Rule 42(a)(i) the words “sent as a prepaid letter posted to the member’s last known address”.

“(f) Without limiting Rule 42(d), if a person has been refused admission to or turned out of the Club in accordance with Rule 42(c)(i)), the person must not re-enter or attempt to re-enter the Club within twenty four (24) hours of being refused admission or being turned out.

(p) inserting the following new Rules 42(a)(iii) and (iv) and renumbering the remaining provisions of Rule 42(a) accordingly: “(iii) If the chairperson determines (in their absolute discretion) that the member charged is not acting in an appropriate manner at the hearing, the chairperson may issue the member charged with a warning regarding the member’s conduct and advise the member that if the member fails to comply with the warning, the member may be asked to leave the meeting and the Board will continue to consider and deal with the charge in the absence of the member. (iv)

If the member charged does not comply with the warning given in accordance with Rule 42(a)(iii), the

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(g) Without limiting Rule 42(d), if a person has been refused admission to or turned out of the Club in accordance with Rule 42(c)(i), the person must not remain in the vicinity of the Club and/or re-enter the vicinity of the Club within six (6) hours of being refused admission or being turned out”. (w)

deleting Rule 43 and inserting the following new Rules 43 to 43B inclusive: “43.A member may at any time resign from his or her membership of the Club by giving notice in writing to the Secretary or by returning his or her membership card to

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Business of Annual General Meeting an officer of the Club and clearly indicating to the officer that he or she resigns from membership. 43A. A resignation pursuant to Rule 43 shall take effect from the date on which the notice is received by the Secretary or the date on which the membership card is received by the officer of the Club. 43B.A member will not be entitled to any refund of membership fees or any part thereof unless the Board considers that there are circumstances warranting an ex gratia payment of the unexpired portion of his or her membership fees from the date of resignation”.

(dd) deleting Rules 65 to 74 inclusive and the headings preceding those Rules and inserting the following new headings and Rules 65 to 74G inclusive: “MATERIAL PERSONAL INTERESTS OF DIRECTORS 65 Any director who has a material personal interest in a matter that relates to the affairs of the Club must, as soon as practicable after the relevant facts have come to the director’s knowledge: a)

declare the nature of the interest at a meeting of the Board; and

(b)

comply with Rule 66.

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(y) deleting Rule 46 and inserting the following new Rule 46: “46 For the purposes of Rule 45(c), “responsible adult” means an adult who is:

Notwithstanding anything contained in the Act, a director who has a material personal interest in a matter that is being considered at a meeting of the Board, or of the Directors of the Club:

(a)

must not vote on the matter; and

(a) a parent, step-parent or guardian of the minor; or

(b)

must not be present while the matter is being considered at the meeting.

(x) deleting from Rule 44(a) the word “Honorary” and inserting the word “Junior”

(b) the minor’s spouse or de facto partner; (c) for the time being, standing in as the parent of the minor. (z) inserting the following new Rule 49A(d):

REGISTERED CLUBS ACCOUNTABILITY CODE 67

The Club must comply with the requirements of the Registered Clubs Accountability Code (as amended from time to time) and the provisions of this Rule 67 to 74G inclusive. If there is any inconsistency between the Registered Clubs Accountability Code and the provisions of this Constitution, the provisions of the Registered Clubs Accountability Code shall prevail to the extent of that inconsistency.

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For the purposes of Rules 67 to 74G inclusive, the terms “close relative”, “controlling interest”, “manager”, “pecuniary interest” and “top executive” have the meanings assigned to them by the Registered Clubs Act and Registered Clubs Regulations.

“(d) Any person who is elected or appointed to the Board, must, unless exempted, complete such mandatory training requirements for directors as required by the Regulations made under the Registered Clubs Act.” (aa) inserting the following new Rules 53(r) and (s): “(o)

To delegate any of its powers to directors, members, employees, committees, sub clubs or any combination thereof.

(p)

To issue requests and directions to members which may be reasonably required for the proper conduct and management of the Club.”

(bb) deleting from Rule 58 the word “personally”. (cc) inserting at the end of Rule 63 the words “In addition to this, a resolution may be passed by the Board if the proposed resolution is emailed to all directors and all directors agree to the proposed resolution by sending a reply email to Secretary to that effect. The resolution shall be passed when the last director sends their email agreeing to the resolution.”

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Contracts with top executives 69

The Club must ensure that each top executive has entered into a written employment contract with the Club dealing with: (a)

the top executive’s terms of employment; and

(b)

the roles and responsibilities of the top executive;

(c)

the remuneration (including fees for service) of the top executive;

(d)

the termination of the top executive’s employment.


Campbelltown Catholic Club Annual Report 2021

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Contracts of employment with top executives: (a) (b)

will not have any effect until they are approved by the Board; and must be reviewed by an independent and qualified adviser before they can be approved by the Board.

Contracts with directors or top executives 71

72

Subject to any restrictions contained in the Registered Clubs Act and Rule 73 the Club must not enter into a commercial arrangement or a contract with a director or top executive or with a company or other body in which a director or top executive has a pecuniary interest, unless the proposed commercial arrangement or contract is first approved by the Board. A “pecuniary interest” in a company for the purposes of Rule 71 does not include any interest exempted by the Registered Clubs Act.

Contracts with Secretary and managers 73

Unless otherwise permitted by the Registered Clubs Act, the Club must not enter into a commercial arrangement or contract with: (a) the Secretary or a manager; or (b) any close relative of the Secretary or a manager; (c) any company or other body in which the Secretary or a manager or a close relative of the Secretary or a manager has a controlling interest.

Loans to directors and employees 74

The Club must not: (a) lend money to a director of the Club; and (b) unless otherwise permitted by the Registered Clubs Act and Regulations, the Club must not lend money to an employee of the Club unless the amount of the proposed loan is ten thousand dollars ($10,000) or less and the proposed loan has first been approved by the Board.

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Restrictions on the employment of close relatives of directors and top executives 74A A person who is a close relative of a director or top executive must not be employed by the Club unless their employment is approved by the Board. 74B If a person who is being considered for employment by the Club is a close relative of a director of the Club, the director must not take part in any decision relating to the person’s employment. Disclosures by directors and employees of the club 74C A director, top executive or employee of the Club must disclose any of the following matters to the Club to the extent that they relate to the director, top executive or employee: (a) any material personal interest that the director has in a matter relating to the affairs of the Club; and (b) any personal or financial interest of the director or top executive in a contract relating to the procurement of goods or services or any major capital works of the Club; (c) any financial interest of the director or top executive in a hotel situated within forty (40) kilometres of the Club’s premises; (d) any gift (which includes money, hospitality and discounts) valued at one thousand dollars ($1,000) or more, or any remuneration (including any fees for service) of an amount of one thousand dollars ($1,000) or more, received by the director, top executive or employee from an affiliated body of the Club or from a person or body that has entered into a contract with the Club. 74D The Club must keep a register in an approved form containing details of the disclosures made to the Club in accordance with this Rule 74C. Training disclosures 74E The Club must make available to members: (a) details of any training which has been completed by directors, the Secretary and managers of the Club in accordance with the Registered Clubs Regulation; and

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Business of Annual General Meeting (b) the reasons for any exemptions of directors, the Secretary or managers from undertaking the training prescribed by the Registered Clubs Regulation. 74F The Club must indicate, by displaying a notice on the Club’s premises and on the Club’s website (if any), how the members of the Club can access the information. Provision of information to members 74G The Club must: (a) make the information required by the Registered Clubs Regulations available to the members of the Club within four (4) months after the end of each reporting period to which the information relates: and (b) indicate, by displaying a notice on the Club’s premises and on the Club’s website (if any), how the members of the Club can access the information.” (ee) deleting Rule 75(d) and inserting the following new Rule 75(d): “(d) is absent from meetings of the Board for a period of ninety (90) days (calculated from the last meeting of the Board attended) without the prior written consent of the Board unless the Board determines that their office is not be vacant as a result of that absence”. (ff) deleting Rule 75(f) and inserting the following new Rule 75(f): “(f)

becomes prohibited from being a member of the Board by reason of any order or declaration made under the Act, the Registered Clubs Act or the Liquor Act”.

(gg) inserting the following new Rules 75(i) and (j): (i)

was not eligible to stand for or be elected or appointed to the Board.

(j)

ceases to hold the necessary qualifications to be elected or appointed to the Board.”

(hh) deleting Rule 78(b) and inserting the following new Rule 78(b): “(b) The Board must call and arrange to hold a general meeting of the Club on the request of members with at

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least 5% of the votes that may be cast at the general meeting”. (ii) inserting the following new Rules 79A to 79F inclusive: “79A The Board may cancel or postpone any general meeting prior to the date on which it is to be held, except where such cancellation or postponement would be contrary to the Act. The Board may give such notice of the cancellation or postponement as it thinks fit but any failure to give notice of the cancellation or postponement does not invalidate the cancellation or postponement or any resolution passed at a postponed meeting. This Rule will not operate in relation to a meeting called pursuant to a request or requisition of members. 79B The Board may withdraw any resolution which has been proposed by the Board and which is to be considered at a general meeting, except where the withdrawal of such a resolution would be contrary to the Act. 79C If permitted by the Act, the Club may hold virtual only general meetings or Annual General Meetings. The provisions of the Act shall apply to such meetings and to the extent of any inconsistencies between the Act and the Constitution, the provisions of the Act shall prevail. 79D The Club may record general meetings (including Annual General Meetings) using audio and/or visual technology but members are not permitted to do so.” 79E The chairperson: (a) is responsible for the conduct of the general meeting; and (b) shall determine the procedures to be adopted and followed at the meeting; (c) may refuse a member admission to a general meeting or require a member to leave a general meeting if in his or her opinion, the member is not complying with reasonable directions and/or is acting in an offensive and disruptive manner at the meeting. 79F The Board may authorise persons other than members to attend and speak at a general meeting but those persons shall not be entitled to vote at general meetings.”


Campbelltown Catholic Club Annual Report 2021

(jj) deleting Rule 94 and inserting the following new Rule 94: “94. The Board shall: (a)

cause proper accounts and records to be kept with respect to the financial affairs of the Club in accordance with the Act and the Registered Clubs Act.

(b)

prepare, on a quarterly basis, financial statements that incorporate: (i) the Club’s profit and loss accounts and trading accounts for the quarter; and (ii) a balance sheet as at the end of the quarter. (iii) cause the financial statements referred to in paragraph (b) of this Rule to be submitted to a meeting of the Board.

(c)

make the financial statements referred to in paragraph (b) of this Rule available to members of the Club within seven (7) days of the statements being adopted by the Board.

(d)

indicate, by displaying a notice on the Club’s premises and on the Club’s website, how the members of the Club can access the financial statements referred to in paragraph (b) of this Rule.

(e)

provide a copy of the financial statements referred to in paragraph (b) of this Rule available to any member on the written request of the member.”

(kk) deleting Rules 102 and 103 and inserting Rules 102 to 103C inclusive: “102 A notice may be given by the Club to any member either: (a) personally; or (b) by sending it by post to the address of the member; (c) by sending it to the electronic address (if any) of the member; (d) by notifying the member in accordance with Rule 103 (in the case of notices of general meetings (including Annual General Meetings) only). 103 If the member nominates:

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(a) an electronic means (the nominated notification means) by which the member may be notified that notices of meeting are available; and (b) an electronic means (the nominated access means) the member may use to access notices of meeting; the Club may give the member notice of the meeting by notifying the member (using the nominated notification means); (c) that the notice of meeting is available; and (d) how the member may use the nominated access means to access the notice of meeting. 103A Where a notice is personally given to a member in accordance with Rule 102(a), the notice is received on the day the member is given the notice. 103B Where a notice is sent to a member in accordance with Rules 102(b) and (c), the notice is received on the day following that on which the notice was sent. 103C Where a notice of general meeting (including Annual General Meeting) is sent to a member in accordance with Rules 102(d) and 103, the notice is received on the day following that on which the member is notified that the notice of meeting is available.” (ll) deleting from Rule 104 the figure “82A” and inserting the figure “9”. Explanatory Notes to Members on Special Resolution 1. The Special Resolution proposes a series of amendments to the Constitution to bring it into line with best practice and the Corporations Act, Liquor Act and Registered Clubs Act. 2. Paragraph (a) clarifies that members are bound by and must comply with the Constitution, By-laws and any other applicable determinations, resolutions and policies of the Club. 3. Paragraph (b) updates cross references to the Registered Clubs Act. 4. Paragraphs (c) to (e) inclusive delete references to the certificate of registration which was previously held by the Club and inserts references to the club licence which is now held by the Club.

15


Business of Annual General Meeting 5. Paragraph (f) deletes a provision which is no longer required. In this regard, the Registered Clubs Act no longer prescribes a maximum number of members for registered clubs. 6. Paragraph (g) clarifies that the Board may transfer a member who ceases to hold the necessary qualifications for a particular category of membership to another category of membership for which the member holds the appropriate qualifications. For example, the Board can transfer a Junior member to another category of membership when the Junior member turns eighteen (18) years old. 7. Paragraphs (h) to (k) inclusive slightly amend existing provisions relating to Provisional, Honorary and Temporary membership to bring the Constitution into line with the Registered Clubs Act. 8. Paragraphs (l) and (x) insert appropriate references to Junior members.

15. Paragraph (y) amends the definition of “responsible adult” to reflect the definitions contained in the Liquor Act. 16. Paragraph (z) clarifies that any person who is elected or appointed to the Board must complete the mandatory director training as prescribed by the Registered Clubs Act and Regulation. 17. Paragraph (aa) better clarifies the powers of the Board but it does not change the powers of the Board. 18. Paragraph (bb) clarifies that the quorum for a board meeting is the majority of directors present. 19. Paragraph (cc) clarifies that a board resolution can be passed by way of email. This is permitted by the Corporations Act 20. Paragraph (dd) amends existing provisions relating to corporate governance and accountability to bring the Constitution into line with the Corporations Act, Registered Clubs Act and Registered Clubs Regulation.

9. Paragraph (m) clarifies that the Club may refuse an applicant for membership admission to the Club or remove an applicant for membership from the Club’s premises. This provision does not apply to members of the Club.

21. Paragraphs (ee) to (gg) inclusive amends existing provisions relating to vacancies on the Board to bring the Constitution into line with best practice and Registered Clubs Act.

10. Paragraph (n) clarifies that members must advise the Club of any change to their contact details (including their address, email address and telephone number).

22. Paragraphs (hh) and (ii) amend existing provisions relating to general meetings (including Annual General Meetings) to bring the Constitution into line with the Corporations Act.

11. Paragraphs (o) to (q) inclusive amend existing provisions relating to disciplinary proceedings to bring the Constitution into line with best practice. 12. Paragraph (r) clarifies that a member who has been issued with a notice of disciplinary charge and hearing can be provisionally suspended from membership pending their disciplinary hearing. 13. Paragraphs (s) to (v) inclusive amend existing provisions relating to the removal of persons from the Club’s premises to bring the Constitution into line with the Liquor Act. 14. Paragraph (w) amends existing provisions relating to the resignation of membership to bring the Constitution into line with best practice.

16

23. Paragraph (jj) amends existing provisions relating to reporting to members to bring the Constitution into line with the Corporations Act. 24. Paragraph (kk) amends existing provisions relating to the sending of notices to members to bring the Constitution into line with the Corporations Act. 25. Paragraph (ll) amends a cross reference to the Corporations Act.


Campbelltown Catholic Club Annual Report 2021

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Procedural Notes for Special Resolution • To be passed, the Special Resolution must receive votes in favour from not less than three quarters (75%) of those members who, being eligible to do so, vote in person on the Special Resolution at the meeting. • Only Life members and financial General members can vote on the Special Resolution. • The Registered Clubs Act provides that: - members who are employees of the Club are not entitled to vote; and - proxy voting is prohibited.

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: 30 August 2021

Michael Lavorato

Chief Executive Officer

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Director’s Report For the year ended 30 June 2021 The directors submit their report on Campbelltown Catholic Club Ltd (the “Club”) for the year ended 30 June 2021.

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, unless otherwise stated.

Directors

David James Olsson, MBA, FCPA, JP

Board Meetings eligible to attend

Board Meetings attended

Other Meetings eligible to attend

Other Meetings attended

15

15

7

7

7

7

3

3

15

14

4

4

15

15

5

4

7

7

4

4

7

7

3

3

15

14

1

1

15

12

6

6

15

14

8

8

15

15

5

5

Finance Manager Director from 2000 President from 2005

Mary Ellen Bland, GAICD, JP Retired School Teacher Director from 2003 Resigned: 4 November 2020

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 Resigned: 26 October 2020

Leo John Delissen Retired Director from 2005 Resigned: 26 October 2020

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

Julie Puckrin Solicitor Director from 2020

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Campbelltown Catholic Club Annual Report 2021

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..

Members limited liability 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.

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

Operating results for the year The net profit after tax of the Club for the year ended 30 June 2021 was $6,579,664 (2020: net loss after tax of $1,761,449).

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.

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

Measurement of performance The financial performance of the Club for the year ended 30 June 2021 has again been significantly impacted by the COVID-19 pandemic. The majority of our business operations reopened on 22 June 2020 with restricted trading conditions which continued to constrain operations. While growing consumer confidence lead to improved trading performance across the reporting period, the lockdown and forced closure of club and fitness operations on 26 June 2021 has again impacted operations. 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 • Market research

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Director’s Report For the year ended 30 June 2021

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.

20

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 21. Signed in accordance with a resolution of the directors.

David James Olsson Director 7 September 2021

David Michael McDonald Director 7 September 2021


Campbelltown Catholic Club Annual Report 2021

Ernst & Young 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 2021, 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 7 September 2021

21


Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

Notes

2021 $

2020$

Revenue from contracts with customers

4.1

57,033,545

48,994,384

Other income

4.2

2,764,506

2,905,308

Cost of goods sold

(3,548,752)

(4,045,858)

Poker machine revenue taxes

(9,920,502)

(6,941,475)

4.3

(16,984,335)

(19,499,392)

10, 15

(9,000,703)

(8,947,931)

Donations

(1,076,349)

(692,341)

Marketing and promotions

(2,190,211)

(3,107,497)

Repairs and maintenance

(2,101,843)

(2,028,884)

Utilities

(2,175,313)

(2,005,503)

(919,015)

(832,948)

218

3,205

(464,260)

(595,490)

(4,837,322)

(4,967,027)

6,579,664

(1,761,449)

-

-

6,579,664)

(1,761,449)

-

-

6,579,664

(1,761,449)

Employee benefit expenses Depreciation expense

Cleaning Finance Income Finance costs

4.4

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

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 2021

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Statement of financial position As at 30 June 2021

Notes

2021 $

2020 $

Assets Current assets Cash

6

4,913,971

2,271,826

Trade and other receivables

7

369,708

1,428,473

Inventories

8

317,812

217,406

Other assets

9

310,782

313,208

5,912,273

4,230,913

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

10

137,035,157

138,228,326

Intangible assets

11

4,852,044

4,852,044

Right-of-use assets

15

269,818

505,231

Total non-current assets

142,157,019

143,585,601

Total assets

148,069,292

147,816,514

Liabilities Current liabilities Trade and other payables

12

3,696,168

4,611,110

Lease liabilities

15

240,186

235,223

Interest-bearing loans and borrowings

13

180,035

191,234

Provisions

14

3,494,129

3,404,001

7,610,518

8,441,568

Total current liabilities Non-current liabilities Trade and other payables

12

15,522

-

Lease liabilities

15

15,254

255,440

Interest-bearing loans and borrowings

13

19,122,608

24,302,643

Provisions

14

369,071

460,208

Total non-current liabilities

19,522,455

25,018,291

Total liabilities

27,132,973

33,459,859

120,936,319

114,356,655

Retained earnings

120,936,319

114,356,655

Total members' equity

120,936,319

114,356,655

Net assets Members' equity

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

23


Statement of changes in members’ equity For the year ended 30 June 2021

Retained Earnings $

Total Members’ Equity $

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)

At 30 June 2020

114,356,655

114,356,655

As at 1 July 2020

114,356,655

114,356,655

Profit for the year

6,579,664

6,579,664

-

-

6,579,664

6,579,664

120,936,319

120,936,319

Other comprehensive income Total comprehensive loss for the year

Other comprehensive income Total comprehensive income for the year At 30 June 2021

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 2021

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Statement of cash flows For the year ended 30 June 2021

Note

2021 $

2020 $

62,770,187

54,331,432

(50,467,978)

(48,861,780)

3,774,000

1,692,000

218

3,205

(464,260)

(595,490)

15,612,167

6,569,367

87,985

296,632

Acquisition of property, plant and equipment

(7,631,550)

(13,766,396)

Net cash flows used in investing activities

(7,543,565)

(13,469,764)

(191,234)

(177,989)

(5,000,000)

6,000,000

(235,223)

(230,363)

Net cash flows (used in)/from financing activities

(5,426,457)

5,591,648

Net increase/(decrease) in cash and cash equivalents

2,642,145

(1,308,749)

Cash and cash equivalents at 1 July

2,271,826

3,580,575

4,913,971

2,271,826

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 Repayment of hire purchase principal (Repayments of)/proceeds from borrowings Payment of principal portion of lease liabilities

Cash and cash equivalents at 30 June

6

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

25


Notes to the financial statements For the year ended 30 June 2021

1. Corporate information

2.2 Changes in accounting policies, disclosures, standards and interpretations

The financial statements of Campbelltown Catholic Club Ltd (the “Club”) for the year ended 30 June 2021 were authorised for issue in accordance with a resolution of the directors on 7 September 2021.

New and amended standards and interpretations

Campbelltown Catholic Club Ltd 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 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 new and amended Australian Accounting Standards and Interpretations that apply for the first time in 2021/2020 do not materially impact the financial statements of the Club.

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 2021. The Club is assessing the below new standard to the extent relevant to the Club.

AASB 1060 General Purpose Financial Statements - Simplified Disclosure for ForProfit and Not-for-Profit Tier 2 Entities

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.

Entities will be required to follow the recognition and measurement requirements under Australian Accounting Standards but may apply the simplified disclosure requirements in AASB 1060. AASB 1060 is the new simplified disclosure standard developed by the AASB based on IFRS for Small and Medium-sized 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.

a) Going concern

The financial report is presented in Australian dollars ($).

2.3 Summary of significant accounting policies

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 2021, the Club’s total current liabilities exceeded total current assets by $1,698,245 (2020: $4,210,655). Given that significant positive cash flows from operations are being generated and the Club has significant financing facilities

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Campbelltown Catholic Club Annual Report 2021

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2. Summary of significant accounting policies (Continued) 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.

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; • Held primarily for the purpose of trading; • Due to be settled within twelve months after the reporting period, or

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 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.

• 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.

27


Notes to the financial statements For the year ended 30 June 2021 2. Summary of significant accounting policies (Continued)

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.

not depreciated 40 years 2 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

28

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.

h) Intangible assets

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

conditions, are also monitored for indicators of impairment. If any indication of impairment exists, an estimate of the assets recoverable amount is calculated.

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.


Campbelltown Catholic Club Annual Report 2021

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2. Summary of significant accounting policies (Continued) A summary of the policies applied to the Club’s intangible assets is as follows: Poker machine licences

Holiday accommodation licences

Useful lives

Indefinite

Indefinite

Amortisation method used

No amortisation but tested for

No amortisation but tested for impairment at least annually

impairment at least annually Internally generated or acquired

Acquired

Acquired

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 EIR 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.

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

l) Leases 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.

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 note 2.3(g) Impairment.

29


Notes to the financial statements For the year ended 30 June 2021 2. Summary of significant accounting policies (Continued) (ii) Lease liabilities

m) Provisions

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.

Provisions are recognised when the Club has a present obligation (legal or constructive) as a result of a past

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.

n) Revenue from contracts with customers

(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.

30

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.

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.

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.


Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

2. Summary of significant accounting policies (Continued)

o) Other income Government grants The government’s JobKeeper Payment scheme was able to support businesses significantly affected by the COVID-19 pandemic and help keep more Australians in jobs. This payment scheme is available to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight. Eligible employers reimbursed a fixed amount of $1,500 per fortnight for each eligible employee from 30 March 2020 to 27 September 2020. 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 2021 (2020: $2,733,000). 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: • 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 ignificant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

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Notes to the financial statements For the year ended 30 June 2021 2. Summary of significant accounting policies (Continued)

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.

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.

Estimation of useful lives of property, plant and equipment The Club determines the estimated useful lives and related depreciation charge for its property, plant and equipment. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written-off or written down.

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Campbelltown Catholic Club Annual Report 2021

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3. Significant accounting judgements, estimates and assumptions (Continued)

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 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).

33


Notes to the financial statements For the year ended 30 June 2021

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

2021 $

2020 $

Gaming

38,730,273

27,683,685

Catering

5,445,504

6,928,853

Rydges Hotel

4,200,880

5,353,084

Liquor

3,813,353

4,114,559

Aquafit gym

2,660,335

2,682,687

Golf course

867,960

810,814

Subscriptions

692,913

601,368

Entertainment

177,443

405,495

Commissions

290,166

248,609

Room and equipment hire

154,668

161,365

Others Total revenue from contracts with customers

50

3,865

57,033,545

48,994,384

47,989,130

36,382,892

9,044,415

12,611,492

57,033,545

48,994,384

2021 $

2020 $

31,506

172,308

2,733,000

2,733,000

2,764,506

2,905,308

2021 $

2020 $

14,993,496

17,299,750

1,265,202

1,335,267

699,182

836,901

Timing of revenue recognition Transferred at a point in time Transferred over time Total revenue from contracts with customers All revenue from contracts with customers are earned within New South Wales, Australia.

4.2 Other income Gain on disposal of assets Government Grants

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

34

26,455

27,474

16,984,335

19,499,392


Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

4. Revenue and Expenses (Continued)

4.4 Finance costs 2021 $ Interests on lease liabilities

2020 $

10,354

15,214

433,450

553,425

20,456

26,851

464,260

595,490

2021 $

2020 $

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 2021 and 2020 are:

Statement of profit or loss and other comprehensive income Current income tax:

Reconciliation of tax expense and the accounting profit/(loss) multiplied by Australia’s domestic tax rate for 2021 and 2020:

2021 $

2020 $

Accounting profit/(loss) before income tax

6,579,664

1,761,449)

At Club’s statutory income tax rate of 30% (2020: 30%)

1,973,899

(528,435)

Member only income

(985,177)

(952,526)

991,139

963,543

(1,535,684)

(36,444)

(444,177)

553,862

-

-

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

At 30 June 2021, the Club had accumulated taxable losses with a future income tax benefit of $1,479,032 (2020: $1,479,032) 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

35


Notes to the financial statements For the year ended 30 June 2021

6. Cash Cash at bank and on hand

2021 $

2020 $

4,913,971

2,271,826

2021 $

2020 $

149,149

47,860

(1,750)

(1,750)

147,399

46,110

222,309

1,382,363

369,708

1,428,473

2021 $

2020 $

247,151

187,691

70,661

29,715

317,812

217,406

2021 $

2020 $

296,782

299,208

14,000

14,000

310,782

313,208

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 Trade receivables Expected credit losses

Other receivables

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

9. Other assets Current Prepayments Security deposits

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Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

10. Property, plant and equipment 2021 $

2020 $

Freehold land

At cost

3,100,343

3,100,343

Buildings

At cost

177,617,685

164,271,078

Accumulated depreciation

(54,301,483)

(49,971,338)

Net carrying amount

123,316,202

114,299,740

Capital work in progress

At cost

-

8,879,338

Plant and equipment

At cost

33,347,801

31,340,484

(23,380,079)

(20,170,130)

9,967,722

11,170,354

85,440

85,440

(85,440)

(84,431)

-

1,009

1,653,706

1,623,266

(1,002,816)

(845,724)

650,890

777,542

At cost

215,804,975

209,299,949

Accumulated depreciation

(78,769,818)

(71,071,623)

Net carrying amount

137,035,157

138,228,326

Accumulated depreciation Net carrying amount Motor vehicles

At cost Accumulated depreciation Net carrying amount

Course improvements

At cost Accumulated depreciation Net carrying amount

Total property, plant and equipment

37


Notes to the financial statements For the year ended 30 June 2021 10. Property, plant and equipment (Continued) Reconciliation of carrying amounts at the beginning and the end of the year

2021 $ Freehold land

Buildings

At 1 July

3,100,343

Net book value at 30 June

3,100,343

At 1 July Additions

4,892,739

Transfer from construction in progress

8,453,868

Depreciation charge for the year Net book value at 30 June Capital work in progress

At 1 July Transfer to buildings and plant and equipment Net book value at 30 June

Plant and equipment

At 1 July Additions

8,879,338 (8,879,338) 11,170,354 2,708,371

Disposals

(56,479)

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

38

123,316,202

422,520

Net book value at 30 June

Course improvements

(4,330,145)

Transfer from construction in progress Depreciation charge for the year

Motor vehicles

114,299,740

(4,277,044) 9,967,722 1,009 (1,009) 777,542 30,440 (157,092) 650,890


Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

10. Property, plant and equipment (Continued) 2021 $ Total property, plant and equipment

At 1 July

138,228,326

Additions

7,631,550

Disposals

(56,479)

Costs written off Depreciation charge for the year Net book value at 30 June

(2,950) (8,765,290) 137,035,157

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.

39


Notes to the financial statements For the year ended 30 June 2021 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

$

Land

22 January 2021

32,850,000

Buildings

22 January 2021

131,000,000

Plant and equipment

22 January 2021

12,768,410

10 February 2021

4,250,000

29 January 2021

1,255,340

Land

10 February 2021

3,800,000

Building and site improvement

10 February 2021

200,000

Main Club, Rydges Hotel, Aquafit Gym, The Cube

Club's Golf Course Leasehold land and building improvements Plant and equipment Commercial Premises

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.

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Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

11. Intangible assets 2021 $

2020 $

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 2021 $

2020 $

889,349

537,229

2,165,593

3,503,286

600,906

537,975

40,320

32,620

3,696,168

4,611,110

15,522

-

Current Trade payables Other payables and accrued expenses Contract liabilities Staff deposits*

Non-current Contract liabilities 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 2021.

41


Notes to the financial statements For the year ended 30 June 2021

13. Interest-bearing loans and borrowings 2021 $

2020 $

180,035

191,234

19,000,000

24,000,000

122,608

302,643

19,122,608

24,302,643

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

Terms and conditions The market rate loan of $25,000,000 (2020: $30,000,000) is a fixed term facility which will mature in December 2024. 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 $19,000,000 (2020: $24,000,000) at rates prevailing at the time of roll-over. At 30 June 2021, the average implicit interest rate on the outstanding loan was 0.10% (2020: 0.16%). Hire purchase agreements have remaining terms ranging from 0.5 to 3.5 years and an average implicit discount rate of 4.68% (2020: 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 (2020: $1,000,000). This facility has not been drawn in the current financial year.

14. Provisions 2021 $

2020 $

3,494,129

3,404,001

369,071

460,208

Current Employee entitlements Non-current Employee entitlements

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Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

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 Additions Depreciation expense As at 30 June 2020 Depreciation expense As at 30 June 2020

Equipment $ 59,151 661,875 (215,795) 505,231 (235,413) 269,818

43


Notes to the financial statements For the year ended 30 June 2021 15. Leases (Continued) Set out below are the carrying amounts of lease liabilities and the movements during the period:

2021 $

2020 $

490,663

59,151

-

661,875

10,354

15,214

(245,577)

(245,577)

As at 30 June

255,440

490,663

Current

240,186

235,223

15,254

255,440

2021 $

2020 $

235,413

215,795

Interest expense on lease liabilities

10,354

15,214

Expense relating to short-term leases

36,620

36,158

4,036

4,036

286,423

271,203

As at 1 July Additions Accretion of interest Payments

Non-current The following are the amounts recognised in profit or loss:

Depreciation expense of right-of-use assets

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

The Club had total cash outflows for leases of $286,233 in 2021.

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Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

16. Commitments and contingencies 16.1 Lease commitments The Club has no lease contracts that have not yet commenced as at 30 June 2021.

16.2 Hire purchase contracts The future lease payments for these non-cancellable lease contracts are $190,858 within one year and $125,225 after one year but not more than five years.

2021 $

2020 $

Within one year

190,858

211,591

After one year but not more than two years

125,225

190,858

After one year but not more than five years

-

125,225

Total minimum lease payments

316,083

527,674

Future finance charges

(13,440)

(33,797)

Hire purchase liability

302,643

493,877

Current liability

180,035

191,234

Non-current liability

122,608

302,643

302,643

493,877

Comprises:

16.3 Capital commitments Capital expenditure of $nil (2020: $4,424,907) 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 (2020: $nil).

45


Notes to the financial statements For the year ended 30 June 2021

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.

46

2021 $

2020 $

34,125

56,250


Campbelltown Catholic Club Annual Report 2021

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18. Related Party Information (Continued)

18.3 Directors’ expenses Expenses incurred by directors

2021 $

2020 $

12,178

17,936

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

2021 $

2020 $

1,446,865

1,554,177

104,148

114,517

1,551,013

1,668,694

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.

47


Notes to the financial statements For the year ended 30 June 2021 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 2021 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 2021 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

7 September 2021

David Michael McDonald

Director

7 September 2021

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Campbelltown Catholic Club Annual Report 2021

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 2021, 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 2021 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

49


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:

50

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.


Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

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 7 September 2021

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

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Campbelltown Catholic Club Annual Report 2021

cathclub.com.au

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