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2015-16 ANNUAL REPORT C A M P B E L LT O W N C A T H O L I C C L U B


BOARD OF DIRECTORS

LEFT TO RIGHT: LEO DELISSEN, MICHAEL LAVORATO (CEO), STEVE CARTER, PETER CRITTENDEN, MARY ELLEN BLAND, ALAN SCOTT, PETER MEADOWS, DAVID OLSSON, DAVID MCDONALD. NEWLY APPOINTED BOARD MEMBER MICHAEL BRISLANE ABSENT FROM PHOTO.


CONTENTS 04

PRESIDENTS WELCOME

06

CEO’S OVERVIEW

08

OUR HIGHLIGHTS

10

OUR PEOPLE

12

OUR COMMUNITY

14

OUR SCHOOLS

16

OUR INVESTMENTS

18

NOTICE OF AGM

24

OUR FINANCIALS


4 | ANNUAL REPORT 2016

LOOKING GOOD MORE TO COME

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 2016.

This report is to be considered

at the Annual General Meeting to be held on Wednesday 2nd November 2016 at 8.00pm 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 $5.383m, an increase on last year’s number, is an excellent result and reflects an immediate return on our investment in upgraded Club facilities. Our debt has remained at about the same level due to the additional enhancement projects we have undertaken. Our cash surpluses will still primarily be put towards the debt but we are again targeting new works which will cause debt levels to fluctuate over the next year or so. Our overall debt profile is, however, well within our capacity to manage. In 15/16 we were once more able to provide a substantial level of donations to the community. $1.348m was donated to schools, various charities and sporting clubs, a community assistance level of which all Club members should be very proud.

A WELCOME BY CLUB PRESIDENT, DAVID OLSSON

This figure is again an increase on the previous year, with our schools being the main recipients along with increases to many charities and community groups. It should be remembered this figure doesn’t account for the many sponsorships we undertake nor for the non-cash support we provide to many different groups and individuals in our community. We are and will remain a community based club striving to be the best corporate citizen we can be. Some further increases in donation levels are also intended in 16/17.


ANNUAL REPORT 2016 | 5

“I CONTINUE TO BE REMINDED THAT OUR CLUB IS SEEN AS A LEADER AND AN INNOVATOR BY THE INDUSTRY.” In the past year we have expanded the gaming area,

Ron was one of our “founding fathers”, a long-time

finished and populated a new administration block,

Director and Club stalwart and his presence around

added two new dining experiences (both of which will

the Club will be missed. Marg was an institution in the

be open by the time you read this) and modified the

Club and had a very long relationship with the Over

dining seating arrangements to significantly expand

50’s Social Club. Two great people who were well

seating availability in the dining areas. Enhancement

known and liked by all. Vale.

work has also been done in the dining and bar areas at Rydges as well as additional course work at the

On a lighter note I would like to take this opportunity

Golf Course. The Clubs are looking great and there is

to thank my fellow Directors, our CEO Michael

more to come. Critically we intend to expand the hotel

Lavorato, the Management and Staff of our Club for

by adding more rooms and expanding function areas.

their continuing professionalism and enthusiasm. It

Hopefully this work will commence in the new year

has been a good year for our Club and the continuing

and is a result of increasing demand.

pursuit of excellence by our staff speaks volumes for their attitude and dedication to their respective

As has become part of our Corporate Governance

roles. I continue to be reminded that our Club is seen

regime I have again conducted reciprocal formal

as a leader and an innovator by the industry and our

Board performance reviews with the Club Directors.

standing is testament to the ongoing dedication of our

As I have previously said this process is designed to

staff and their relentless quest for excellence in the

help the Board evaluate individual as well as collective

service levels provided to members.

performances over the review period. As ever the scope of the process was again slightly expanded this

A reminder to any Catholic member who wishes to

year and will be regularly reviewed so as to maintain

nominate for a position on the Board of Directors for

currency with best practice corporate governance

our Club, nominations must be received by the Club’s

standards. Annual performance reviews have also

General Manager at least fourteen (14) days prior to

been carried out with the General Manager and the

the Annual General Meeting, ie by 5pm on Wednesday

Executive team.

19th October 2016. Forms can be obtained from the Club’s front desk together with an information pack

Many members will be aware that we recently lost

detailing legal obligations and responsibilities. As per

a treasured Board member in John Towers after a

our Constitution we conduct triennial elections with

relatively short fight with an aggressive disease. John

three positions on the Board up for election each year.

had been on the Board of our Club for about 14 years and had been involved in many facets of the running of

A big thankyou to all our members for the loyalty you

the Club including a long association with our internal

show to the King of Clubs. Your support will ensure

sporting and recreational clubs. He will be sorely

we will continue to provide members with venues and

missed. Our sincere condolences go his family. Vale.

services of which you can all be proud.

Continuing in that sad vein we also lost life members Ron McDonald and Marg Ellich during the past year.


6 | ANNUAL REPORT 2016

MAKING OUR MARK

The old Chinese proverb says, “May you live in interesting times”. Our Prime Minister says we live in “exciting times”. Well, I think we nailed them both this year.

AN OVERVIEW BY CHIEF EXECUTIVE MICHAEL LAVORATO.

It has been interesting and exciting at Campbelltown Catholic Club as we’ve revamped our look, unveiled major expansion plans for Rydges, and embraced a food revolution that has seen the birth of Embers and Kyūbi restaurants. I’ve rarely felt prouder – or busier. Yet, despite all that growth, I am reminded daily that our club is not just real estate. Together with its members, it has developed a character all its own. A very giving character, as we continue to pour grants back into our local community and schools – the very reason our club was founded in the 1960s.

LET ME SHARE WITH YOU SOME OF OUR HIGHLIGHTS FROM 2015-16:


ANNUAL REPORT 2016 | 7

“WE’VE REVAMPED OUR LOOK, UNVEILED MAJOR EXPANSION PLANS FOR RYDGES, AND EMBRACED A FOOD REVOLUTION”

LEADERSHIP TEAM Back Row (L to R): Michael Lavorato Chief Executive Officer, Craig Epton Chief Operating Officer, Lance Howes – IT Manager, Graeme Derrig – Chief Marketing Officer. Centre Row: Dave Turner – Manager Golf Club, Roger Cubitt – Chief Financial Officer, Paul Rifkin – Executive Chef. Front row: Kristen Green – General Manager Aquafit, Maryann Cook – Gaming Manager, Tony Holmes – Operations Manager Facilities, Security & Compliance. Absent from photo: Jill Teeling – General Manager People & Culture, Stephanie Humphries – Operations Manager People & Events.


8 | ANNUAL REPORT 2016

OUR HIGHLIGHTS KEY FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2016 During 2015-16, Campbelltown Catholic Club contributed $1.348 million to the local community through grants funding, sponsorships, local projects, charity support and initiatives. That is, of course, way above and beyond our NSW Clubgrants liability of $692,093. We also provide a significant amount of in-kind support such as free and discounted room hire. Here’s some of the big statistics in a nutshell: HIGHLIGHTS

$

Total Revenue

$62,088,130

4.4%

$5,383,860

37.8%

$12,945,272

11.5%

$1,348,007

6.2%

Total Assets

$125,710,002

4.5%

Net Assets

$103,236,563

5.5%

Profit Net Cashflow Donations

TAX Gaming and revenue tax

$ $12,610,155

Council, water rates, land tax

$509,603

Payroll taxes

$899,636

Total

Growth

$14,019,394

$1.348 MILLION IN COMMUNITY DONATIONS FOR THE YEAR

4,010 AQUAFIT MEMBERS


ANNUAL REPORT 2016 | 9

TOTAL CASH DONATIONS NOW EXCEED $26 MILLION

51,747 MEMBERS

OVER 1.2 MILLION CLUB VISITATIONS

34,204 HOTEL ROOM NIGHTS

585,447 MEALS SERVED

24,629 SHOW TICKETS SOLD


10 | ANNUAL REPORT 2016

OUR PEOPLE At Campbelltown Catholic Club, people are our greatest asset and throughout 2015-16 we continued to inspire and develop our staff members to be the best they can be and to make the most of opportunities in a changing workplace. Three key parts of this are training, reward and inspiration. Here’s a few examples of how we are setting new benchmarks.

RECOGNITION & REWARD We are the only Club in Australia with an online reward and recognition program with Redballoon. Kudos allows employees to earn and accrue points for a choice of over 2500 experiences available throughout Australia, rewarding staff commitment to the Club values of: INNOVATION

COMPASSION

COMMUNITY

RESPECT

TEAM

PASSION

INTEGRITY


ANNUAL REPORT 2016 | 11

TRAINING The club has created training “cadetships” – a hand-crafted pathway for local school leavers into the hospitality industry. Those selected get two years hands-on experience in all areas, from the Club itself to Aquafit, The Cube, Rydges and Campbelltown Golf Club, and finish with

420 Employees

a Diploma of Hospitality Management. The program is partnered with Tactical Training Group (TTG) and Hospitality Training Network (HTN). “This has been an amazing opportunity that sets a great basis for any career in the hospitality industry.” Maddison Rullis. “I guess it’s cultivating our own. It has been so successful that every manager who has had the cadets has asked, ‘When are they coming back’. Great feedback, and the program is working.” Jill Teeling, General Manager People & Culture.

65.9% FEMALE EMPLOYEES

Employees AGE RANGE Pictured, from left, are Jenaye Collins, Maddison Rullis, Morgan Kitchener and Jessica Satara – the four pioneers of a successful new cadetship program.

16 -71 YRS

INSPIRATION In 2016, Campbelltown Catholic Club sent another two staffers over the rugged Kokoda Trail – Makedonka Stoilova, 25, and Luke Cantrill, 21. They were selected to follow in the footsteps of the Australian diggers who famously fought along the track in 1942, pushing boundaries they didn’t know they had. “We’d been told how challenging Kokoda was going to be and that we’d be

90%

EMPLOYEES LIVING IN MACARTHUR

tested physically and mentally – but nothing could prepare us for the flood of emotions we experienced.” Makedonka Stoilova.

$16.7 million Contribution to

Luke Cantrill, Makedonka Stoilova and trek leader Charlie Lynn at the completion of the Kokoda Tack.

household income in Macarthur


02 | ANNUAL REPORT 2016

OUR

COMMUNITY “UNITED WE STAND, DIVIDED WE FALL”.


ANNUAL REPORT 2016 | 13

CAROLS IN THE GARDEN

A huge crowd of all ages flocked to Macarthur’s oldest and largest Christmas carols spectacular, proudly sponsored by Campbelltown Catholic Club. Our own C4 Choir led the singing at the December 2015 event. There was also kids entertainment and top quality food stalls for the adults.

JUNIOR SPORTS HOT SHOT PROGRAM

Launched in 2016 to encourage young sportspeople to share their story online for the chance to win $500 cash every month. Stories can be about participation, overcoming personal adversity or an unexpected win against all the odds. Early winners have included swimmer Sheree Farrell, 17, of Magdalene Catholic High School aiming for the 2020 Tokyo Olympics, and Damian Eagles, 12, of St Benedict’s Catholic College who just returned from representing Australia at a World Series baseball event in the United States.

LIVING STRONGER PROGRAM

Aquafit is running an easily-affordable Living Stronger strength-training program for seniors designed to build muscle mass and increase bone density as well as improve strength, balance, gait, flexibility and coordination. A nice spin-off is that those involved not only feel fitter physically, but mentally. “Sometimes, the main reason I come along to Living Stronger is for the social aspect. The camaraderie we have found extends to occasional dinners, even an annual Christmas singalong where we reinvent songs as the "Von Crapp Singers." Ray McMahon, 80.

24 HOUR FIGHT AGAINST CANCER In 2015, Campbelltown Catholic Club’s Aquafit - Health Fitness Wellbeing, became one of the biggest supporters of this community walkathon that helps cancer patients and gives local doctors the best surgical equipment available. The Club result was more than $13,000 donated, thanks to our members and staff. The club’s varied efforts included Club CEO Michael Lavorato, in a yellow duck suit, diving into a pool to pull a prize-winning rubber duck from the water. “In addition to Aquafit’s annual sponsorship donation, they have developed numerous fun and innovative ways to involve their members.” Sue McGarrity, Deputy Chairperson of 24 Hr Fight Against Cancer.

YOUTH SOLUTIONS PARTNERSHIP

The Safer Celebrations partnership with Youth Solutions reached is sixth year in 2015-16 and ran throughout the festive season, urging our young people to take positive steps to safely enjoy end-of-year celebrations. Youth Solutions staff and volunteers hosted interactive stalls at the Club encouraging 18-25 year olds to stick to their own limits and be mindful of the impacts and consequences, while the Campbelltown Catholic Club provided free soft drink to all designated drivers.


02 | ANNUAL REPORT 2016 14

OUR SCHOOLS Over the past five decades the Catholic Club has invested in bricks and mortar, real estate and infrastructure – but in 2015/16 its most important investment remained its original one – our kids

CATHOLIC SCHOOLS Campbelltown Catholic Club has poured millions of dollars into local Catholic education, and this past year our beneficiaries were: St Anthony’s Primary School, Picton Holy Family Primary School, Ingleburn Mary Immaculate Primary School, Eagle Vale St John the Evangelist Primary School, Campbelltown St Justin’s Primary School, Oran Park St Paul’s Primary School, Camden St Clare’s Primary School, Narellan Vale St Thomas More Primary School, Ruse Our Lady Help of Christians Primary School, Rosemeadow St Gregory’s College, Campbelltown John Therry Catholic High School, Rosemeadow St Patrick’s College, Campbelltown Mt Carmel College, Varroville Mater Dei, Camden Magdalene High School, Narellan St Benedicts College, Oran Park

“THIS IS WHAT IT IS SUPPOSED TO BE ABOUT, THE CLUB WAS FOUNDED IN 1964 TO RAISE MONEY FOR LOCAL SCHOOLS.” CAMPBELLTOWN CATHOLIC CLUB FOUNDING PRESIDENT BILL MEEHAN.


ANNUAL REPORT 2016 | 03 15

NON-CATHOLIC SCHOOLS Campbelltown Catholic Club also gives a helping hand to local government schools. For example, in 2015 Ambarvale High School students got a $50,000 state-of-the-art gym donated by the patrons at Aquafit who won the equipment, with the help of the students, in a global fitness competition by Technogym aimed to combat childhood obesity. “Using this equipment is exciting. It allows us to train in a gym-like environment for free. That helps us build up our fitness and relieve stress during lunch times.” Ambarvale High School student “The importance of lifelong physical activity was made clear to students through the community partnership Aquafit and Ambarvale High were able to establish.’’ Ambarvale High Principal Louise Barnett Clement.

MAX POTENTIAL Our next generation of young leaders displayed a range of community projects as part of Campbelltown Catholic Club's partnership with the Max Potential youth mentoring program. Fourteen students from Camden High School, Mount Carmel Catholic College, St Patrick’s College, Elderslie High School, Wollondilly Anglican College, Campbelltown Performing Arts High School, Mount Annan High School and Magdalene Catholic High School worked with mentors from different local businesses and organisations, culminating in a community project of their choice.


16 | ANNUAL REPORT 2016

OUR INVESTMENTS FOOD REVOLUTION Our team of chefs is proving club food is more than just chicken schnitzels, with two important new restaurants turning Campbelltown Catholic Club into a new food capital of Macarthur. Bringing extraordinary flavours to Campbelltown Catholic Club, Embers Charcoal Kitchen is a unique charcoal kitchen with its highlight ‘The Josper Oven’, creating great aromatic flavours from around the world. As the name suggests, the secret to the restaurant’s flavours is not the flames, it’s the glowing bits at the bottom of the fire.

“It’s all about the charcoal, it’s all about the flavours that charcoal brings out of food. That enhancement. Think of camp cooking and the smell – real food, real fire – none of this manufactured stuff, just nice clean crisp flavours.” Executive chef Paul Rifkin.

Where our old club offices used to be on the top floor is now Kyūbi Modern Asian Dining – serving Asian food with a modern twist. Award winning chef Peter Sheppard was engaged to create a menu and then bring it to life. Each dish aspires to honour traditional Asian flavours and will take guests on a journey along the Mekong River to create a unique synergy of tradition and modern execution. “Watching the food trends in Sydney and Melbourne, and seeing the people queue out the door for this type of food, it’s great that the Catholic Club have brought an upmarket Asian offering to Campbelltown. People who live in Campbelltown shouldn’t have to travel to Sydney for great, on-trend food”. Consultant Peter Sheppard of Caveau, and MoChi Dining fame.


ANNUAL REPORT 2016 | 17

Rydges expansion Some critics claimed a four-and-a-half-star corporate hotel

Construction work should employ about 400 people. It

would never work in a place like Campbelltown, but they

will involve a redevelopment of the existing public areas,

were very wrong. Rydges Campbelltown has thrived and this

restaurant and terrace. In the past year or so, the hotel

year a major $12 million skyline expansion was announced.

has enjoyed an occupancy average of about 80 per cent,

Campbelltown Catholic Club plans to take the hotel

and is often booked out.

from 116 rooms to 154 rooms, as well as expanding its conference/function facilities.

CLUB RENOVATION The Club has created a beautiful new outdoor Gaming Lounge. Floating leaf like structures in the ceiling with LED lights highlighting the leaf veins creates a stunning the backdrop. A new state of the art TAB, Sports Lounge and Terrace is designed adjacent to the Gaming Area. A hit with members and guests. There has also been a major facelift for our foyer, Samba CafĂŠ & Grill and of course our Food Court dining area, which has been winning rave reviews for its classy ambience.


18 | ANNUAL REPORT 2016

CAMPBELLTOWN CATHOLIC CLUB LIMITED ACN 000 504 110

NOTICE OF ANNUAL GENERAL MEETING Notice is hereby given that the Fifty First 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 2nd November 2016 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 19 October 2016. A detailed notice about the nomination process is on the Club’s notice board and on the Club’s website.


ANNUAL REPORT 2016 | 19

Business of Annual General Meeting MINUTES

NOTE TO MEMBERS:

1. To confirm the Minutes of the Fiftieth Annual

Social (Non-Catholic) members as well as General

General Meeting held on 4 November 2015.

(Catholic) members are entitled to vote in the election for directors. However, Social members have

ANNUAL REPORTS

no other voting rights and are not entitled to stand for election to the Board of the Club.

2. To receive and consider: The Club’s Constitution provides for three year terms •

the report of the Board of Directors for the year

of office for directors with one third of the directors

ended 30th June 2016;

retiring each year and an election being held to fill the vacancies thereby created (this is known as the

the Financial Report, including the Income

triennial rule).

Statement, Balance Sheet, Statement of Cash Flows and Statement of Changes in Equity for

The three directors positions referred to at item 3 of

the year ended 30th June 2016;

the agenda are those that fall due to be filled in the normal course under the triennial rule.

the Auditor's Report on the Financial Report for the year ended 30th June 2016.

4. To elect one (1) director to hold office for a period of two (2) years.

NOTE TO MEMBERS: NOTE TO MEMBERS In order to provide an informed and properly researched response, members are requested to

The position of one (1) director who will hold

lodge questions in respect of the financial statements

office for a period of only two (2) years has arisen

to the Chief Executive Officer (preferably in writing) 7

because a director in his first year of office under

days prior to the Annual General Meeting.

the triennial rule passed away in July this year.

The Board filled this position as a casual vacancy.

ELECTION OF DIRECTORS

However, under the triennial rule, that casual vacancy comes to an end at this year’s Annual

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

General Meeting and the balance of the original term of office (being 2 years) can be filled by election at the Annual General Meeting.


20 | ANNUAL REPORT 2016

Business of Annual General Meeting CONTINUED •

Under a By-law made by the Board of the Club pursuant to Rule 50(n) of the Club’s Constitution,

Directors as being of benefit to the Club. (iv)

Sponsorship of Sporting Events and Sport

a person who nominates for election to the

Persons deemed by the Directors to be of

position of the two-year term is ineligible to

benefit to the Club and/or the Community.

nominate for any of the positions for three-year

(v)

terms referred to at Item 3 above. Similarly, a person who has nominated for one of the

Providing complimentary meals and beverages to Life Members.

(vi)

Reasonable expenses incurred by Directors in

positions for a three-year term is ineligible to

travelling by either private or public transport,

nominate for the position of the two-year term.

to and from Directors or other duly constituted Committee Meetings, either within the Club

• A copy of the relevant By-law is on display in the

or elsewhere - as approved by the Board, on

Club’s notice board and on the Club’s website.

production of documentary evidence of such expenditure.

ORDINARY RESOLUTIONS

(vii) The cost of meal and beverage for each Director at a reasonable time before or after

5. To consider, and if thought fit, pass the following

a Board or Committee Meeting, on the day of

six resolutions each of which is proposed as an Ordinary Resolution:

that Meeting. (viii) Reasonable expenses, incurred by Directors, either within the Club or elsewhere, in relation

FIRST ORDINARY RESOLUTION

to such other duties including entertainment of special guests of the Club and other

That pursuant to the Registered Clubs Act:

promotional activities approved by the Board, on production of documentary evidence of such

(a) The Members hereby approve expenditure by the Club not exceeding $175,000 until the

(b)

The Members acknowledge that the benefits

Annual General Meeting in 2017 for the following

in Paragraph (a) above are not available to

expenses subject to approval by the Board of

Members generally, but only for those who are

Directors:

Directors of the Club, Life Members of the Club

(i) Expenses involved in sponsorship of Affiliated Clubs. (ii) Annual Community Leaders Dinner Expenses. (iii)

expenditure.

Presentations to Members or other persons acknowledging services deemed by the

and those Members directly involved in the above activities.


ANNUAL REPORT 2016 | 21

Business of Annual General Meeting CONTINUED

SECOND ORDINARY RESOLUTION

NOTES TO MEMBERS ON FIRST AND SECOND ORDINARY RESOLUTION:

That pursuant to the Registered Clubs Act. • (a) The Members hereby approve expenditure

The First Ordinary Resolution is to have members approve expenditure not exceeding

by the Club not exceeding $50,000 until

$175,000 for expenses incurred by the Club

the Annual General Meeting in 2017 for the

in sponsorships as set out in that resolution,

professional development and education of

reasonable expenses incurred by the Directors

Directors over the following twelve months,

in the performance of their duties and

including:-

expenses incurred by the Club in providing

(i) The reasonable cost of Directors attending the

meals and beverages to Life Members when

Registered Clubs Association Annual General

they attend the Club. This amount is the same

Meeting.

as the amount approved by members at the

(ii) The reasonable cost of Directors attending

Annual General Meeting in 2015.

Meetings of other Associations of which the Club is a Member.

(iii) The reasonable cost of Directors attending

The Second Ordinary Resolution is to have members approve expenditure not exceeding

Seminars, Lectures, Trade Displays, Organised

$50,000 for expenses incurred by the

Study Tours, Fact-finding Tours and other

Club for Directors to attend conferences,

similar events, as may be determined by the

seminars, lectures, trade displays and other

Board from time to time.

similar events and to visit clubs to enable

(iv) The reasonable cost of Directors attending

the Directors to be kept abreast of current

other Clubs for the purpose of observing their

trends and developments which may have a

facilities and methods of operation.

significant bearing on the nature and way in

(v) Attendance at functions, with spouses where

which the Club conducts its business. This

appropriate and required, to represent the

amount is the same as the amount approved

Club.

by members at the Annual General Meeting in

(b) The Members acknowledge that the benefits

2015.

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

To be passed, each Ordinary Resolution requires votes from a simple majority of members who, being eligible to do so, are present at the meeting and vote on the resolution.


22 | ANNUAL REPORT 2016

Business of Annual General Meeting CONTINUED •

The Registered Clubs Act provides that:

between the date of this meeting and the Annual

­

members who are employees of the Club are

General Meeting in 2017.

not entitled to vote; and ­

proxy voting is prohibited.

THIRD ORDINARY RESOLUTION

SIXTH ORDINARY RESOLUTION That pursuant to the Registered Clubs Act the members hereby approve the payment by the Club

That pursuant to the Registered Clubs Act the

of an honorarium to the director of the Club who as

members hereby approve the payment by the Club

determined by the Board has the portfolio of Vice

of an honorarium to the director who is President

President in the sum of $9,500 (inclusive of the

of the Club in the sum of $14,000 (inclusive of the

Superannuation Guarantee Levy) in respect of the

Superannuation Guarantee Levy) in respect of the

services performed by that director in that portfolio

services performed by the President of the Club

between the date of this meeting and the Annual

between the date of this meeting and the Annual

General Meeting in 2017.

General Meeting in 2017. Fourth Ordinary Resolution

Notes to Members on the Third, Fourth, Fifth and

That pursuant to the Registered Clubs Act the

Sixth Ordinary Resolutions:

members hereby approve the payment by the Club

The Third, Fourth, Fifth and Sixth Ordinary

of an honorarium to the director of the Club who

Resolutions are to approve honorariums for the

as determined by the Board has the School Liaison

Board according to the positions held.

portfolio in the sum of $9,500 (inclusive of the

Under the Registered Clubs Act directors can

Superannuation Guarantee Levy) in respect of the

be paid honorariums in respect of their services

services performed by the director in that portfolio

as directors provided that the sum of money

between the date of this meeting and the Annual

representing the honorariums has been approved

General Meeting in 2017.

by a resolution passed at a general meeting of

FIFTH ORDINARY RESOLUTION

members.

That pursuant to the Registered Clubs Act the

The members entitled to vote on the Third,

members hereby approve the payment by the Club

Fourth, Fifth and Sixth Ordinary Resolutions

of honorariums to the directors of the Club (other

must be those who are entitled under the Club’s

than those in in the Third, Fourth and Sixth Ordinary

Constitution to vote in the election of the Board.

Resolutions) in the sum of $7,000 (inclusive of the

To be passed, each of the Third, Fourth, Fifth and

Superannuation Guarantee Levy) for each director, in

Sixth Ordinary Resolutions requires a vote from a

respect of the services performed by each director

simple majority of members who being eligible to


ANNUAL REPORT 2016 | 23

Business of Annual General Meeting CONTINUED

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

GENERAL BUSINESS 6. Note to Members General business is an opportunity for individual members to make comments and recommendations to the Board. By Order of the Board

Michael Lavorato Chief Executive Officer

Dated: 29 August 2016


24 | ANNUAL REPORT 2016

DIRECTORS REPORT Your directors submit their report for the year ended 30 June 2016. The names of the directors in office during the year and at the date of this report and their attendances at full board and others meetings held during the year were as follows: DIRECTORS

NUMBER OF MEETINGS ATTENDED

NUMBER OF MEETINGS HELD*

David James Olsson, MBA, FCPA, JP Finance Manager Director from 2000 President from 2005

30

30

Mary Ellen Bland, GAICD Retired School Teacher Director from 2003

29

29

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

22

26

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

28

29

Alan Anthony Scott Retired Director from 1988

30

30

John William Towers (Ceased: 7 July 2016) Revenue Accountant Director from 2002

28

31

Leo John Delissen General Manager Director from 2005

35

38

Peter James Meadows, MBA Company Director Director from 2011

22

24

Peter Joseph Crittenden, Dip Law (SAB) Lawyer Appointed: 31 August 2015

20

21

2

2

T J Seymour (Resigned: 24 July 2015) * Number of meetings held during the time the director held office during the year.


ANNUAL REPORT 2016 | 25

DIRECTORS REPORT CONTINUED PRINCIPAL ACTIVITIES AND PERFORMANCE

MEASUREMENT OF PERFORMANCE

The principal activity of the company is that of a

The Club measures financial and operational

Registered Club (“Club”). In addition, the Club also

performance using the following key indicators:

operates a fitness centre, hotel, convention centre,

Trading performance to budget

golf course and clubhouse.

EBITDA and EBITDARD performance to industry

The net profit after tax of the Club for the year ended 30 June 2016 was $5,383,860 (2015: $3,907,281).

standards •

Cashflow

Departmental measures such as gross profit and

DIVIDENDS

wage percentages

The Club is prohibited from paying dividends by its

Members’ feedback

Constitution.

Patronage into the premises

Mystery Shopper reviews

Market research

SHORT AND LONG-TERM OBJECTIVES The Club’s short-term and long-term objective is to support Catholic Education, Sport and Culture in the

CHANGES IN THE STATE OF AFFAIRS

Macarthur area.

There were no significant changes in the state of affairs of the Club during the financial year.

The Club aspires to be the premier entertainment venue in South West Sydney through the provision of

DIRECTORS' REMUNERATION

high quality facilities and excellence in customer

No director of the company has, since the end of the

service, supported by quality entertainment, food,

previous financial year, received or become entitled

beverage, gaming, accommodation and fitness

to receive a benefit by reason of a contract made by

services for members and guests.

the director or with a company in which they have a substantial financial interest, except as detailed in

STRATEGIES FOR ACHIEVING OBJECTIVES

Note 19 - Related party information.

The Club undertakes a number of strategies to achieve the above objectives.

AUDITOR INDEMNIFICATION

The Board’s Strategic Plan is monitored and

To the extent permitted by law, the Club has agreed

reviewed on a regular basis

to indemnify its auditors, Ernst & Young, as part of

High level of financial support for community

the terms of its audit engagement agreement against

organisations in accordance with the Club’s

claims by third parties arising from the audit (for an

Charter

unspecified amount). No payment has been made to

Diversification of business to reduce the Club’s

indemnify Ernst & Young during or since the

reliance on gaming revenue

financial year.

• •

Capital investment in all facilities to ensure they continue to meet member expectations

Growth in revenues through an expansion of our business and offerings


26 | ANNUAL REPORT 2016

DIRECTORS REPORT CONTINUED INDEMNIFICATION OF DIRECTORS AND

AUDITOR’S INDEPENDENCE DECLARATION TO

OFFICERS

THE MEMBERS OF CAMPBELLTOWN CATHOLIC

During or since the financial year, the Club has not

CLUB LTD

indemnified or agreed to indemnify any person who

As lead auditor for the audit of Campbelltown

is or has been an officer or auditor of the Club or of a

Catholic Club Ltd for the financial year ended 30

related body corporate against any liability. No

June 2016, I declare to the best of my knowledge and

premiums were payable by the Club in respect of this

belief, there have been:

policy. The Club policy provides against certain liabilities (subject to exclusions) for persons who are

a. no contraventions of the auditor independence

or have been officers of the Club or of a related body

requirements of the Corporations Act 2001 in

corporate. The insurance policy does not provide

relation to the audit; and

details of the premiums paid in respect of individual officers of the Club.

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

This report is made in accordance with a resolution of the directors: Ernst & Young David James Olsson

David Michael McDonald

Director

Director

29 August 2016

29 August 2016

Daniel Cunningham Partner Sydney 29 August 2016


ANNUAL REPORT 2016 | 27

Independent auditor’s report to the members of Campbelltown Catholic Club Ltd REPORT ON THE FINANCIAL REPORT We have audited the accompanying financial report of Campbelltown Catholic Club Ltd, which comprises the statement of financial position as at 30 June 2016, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration. DIRECTORS' RESPONSIBILITY 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 – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. AUDITOR'S RESPONSIBILITY Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to the entity's preparation of the financial report that gives a true and fair view 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 entity's internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit we have complied with the independence requirements of the Corporations Act 2001. We have given to the directors of the company a written Auditor’s Independence Declaration, a copy of which is included in the financial report. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation Opinion In our opinion the financial report of Campbelltown Catholic Club Ltd is in accordance with the Corporations Act 2001, including: a. giving a true and fair view of the financial position of Campbelltown Catholic Club Ltd at 30 June 2016 and of its performance for the year ended on that date; and 2. complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

Ernst & Young

Daniel Cunningham Partner Sydney 29 August 2016


28 | ANNUAL REPORT 2016

Statement of profit or loss and other comprehensive income For the year ended 30 June 2016 NOTES

2016

2015

Sale of goods and services

5(a)

62,033,232

59,304,309

Other income

5(b)

-

68,877

Finance income

5(c)

54,898

74,885

Cost of goods sold

(5,524,177)

(5,266,180)

Poker machine revenue taxes

(9,051,364)

(8,429,826)

Employee benefit expenses

5(e)

(18,441,196)

(18,131,360)

Depreciation expense

5(f)

(7,363,802)

(7,237,625)

Donations

(1,348,007)

(1,269,137)

Marketing and promotions

(3,778,875)

(3,929,568)

Repairs and maintenance

(1,995,906)

(1,762,249)

Utilities

(1,717,184)

(1,952,818)

Cleaning

(1,066,024)

(989,921)

(694,603)

(1,159,551)

(32,071)

-

(5,691,061)

(5,412,555)

5,383,860

3,907,281

-

-

Profit for the year

5,383,860

3,907,281

Total comprehensive income for the year

5,383,860

3,907,281

Finance costs

5(d)

Loss on disposal of assets Other expenses Profit before income tax Income tax expense

6

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


ANNUAL REPORT 2016 | 29

Statement of financial position As at 30 June 2016 NOTES

2016

2015

Cash

7

2,120,567

6,515,675

Trade and other receivables

8

555,449

403,879

Inventories

9

402,198

388,782

10 309,692

333,071

3,387,906

7,641,407

Assets Current assets

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

11

117,470,052

107,763,839

Intangible assets

12

4,852,044

4,852,044

Total non-current assets

12

122,322,096

112,615,883

125,710,002

120,257,290

Total assets Liabilities and equity Current liabilities Trade and other payables

13

4,515,983

4,204,470

Interest-bearing loans and borrowings

14

238,295

262,215

Provisions

15

2,460,178

2,467,631

Other liabilities

16

65,650

65,072

7,280,106

6,999,388

Total current liabilities Non-current liabilities Trade and other payables

13

6,812

15,966

Interest-bearing loans and borrowings

14

14,730,532

14,968,826

Provisions

15

455,989

420,407

15,193,333

15,405,199

22,473,439

22,404,587

103,236,563

97,852,703

103,236,563

97,852,703

103,236,563

97,852,703

Total non-current liabilities Total liabilities Net assets Members' equity Retained profits Total members' equity

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


30 | ANNUAL REPORT 2016

Statement of CHANGES IN MEMBERS EQUITY As at 30 June 2016 RETAINED PROFITS

TOTAL MEMBERS EQUITY

93,945,422

93,945,422

3,907,281

3,907,281

Other comprehensive income

-

-

Total comprehensive income

3,907,281

3,907,281

At 30 June 2015

97,852,703

97,852,703

Profit for the year

5,383,860

5,383,860

Other comprehensive income

-

-

Total comprehensive income

5,383,860

5,383,860

103,236,563

103,236,563

At 1 July 2014 Profit for the year

At 30 June 2016

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


ANNUAL REPORT 2016 | 31

Statement of CASH FLOWS For the year ended 30 June 2016 NOTES

2016

2015

68,099,210

65,327,303

(54,514,233)

(52,635,164)

54,898

74,885

(694,603)

(1,154,135)

12,945,272

11,612,889

149,820

282,938

Acquisition of property, plant and equipment

(17,251,906)

(7,153,777)

Net cash flows used in investing activities

(17,102,086)

(6,870,839)

-

(1,000,000)

(238,294)

(237,141)

(238,294)

(1,237,141)

(4,395,108)

3,504,909

6,515,675

3,010,766

2,120,567

6,515,675

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

Financing activities Repayment of commercial bills Repayment of hire purchase principal Net cash flows used in financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June

7

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


32 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 1. CORPORATE INFORMATION

b. Statement of compliance

The financial report of Campbelltown Catholic

The financial report of the Club complies with

Club Limited for the year ended 30 June 2016 was

Australian Accounting Standards – Reduced

authorised for issue in accordance with a resolution

Disclosure Requirements (AASB – RDRs) (including

of the directors on 29 August 2016.

Australian Interpretations) adopted by the Australian Accounting Standards Board (AASB)

Campbelltown Catholic Club Limited is a company

and the Corporations Act 2001.

limited by guarantee with each member of the company liable to contribute an amount not

c. Going concern

exceeding $2.00 in the event of the company being

The financial report has been prepared on a going

wound up.

concern basis, which contemplates continuity of normal business activities and realisation of assets

The nature of the operations and principal activities

and settlement of liabilities in the ordinary course

of the Club are described in the directors’ report.

of business.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

At 30 June 2016, the Club’s total current liabilities exceeded total current assets by $3,892,200 (2015: total current assets exceeded total current

a. Basis of preparation

liabilities by $642,019). Given that significant

The financial report is a general purposes financial

positive

report, which has been prepared in accordance

cash flows from operations are being generated

with the requirements of the Corporations Act

and the Club has significant financing activities

2001, Australian Accounting Standards – Reduced

available,

Disclosure Requirements and other authoritative

the directors have concluded that the use of the

pronouncements of the Australian Accounting

going concern assumption in the preparation of this

Standards Board. The financial report has also

year’s

been prepared on a historical cost basis, except

financial report is appropriate.

where stated. Accounting policies adopted by the Club are consistent with those of the previous year, unless otherwise stated.

d. Current versus non-current classification The Club presents assets and liabilities in the statement of financial position based on current/

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

non-current classification. An asset is current when it is:


ANNUAL REPORT 2016 | 33

Expected to be realised or intended to be sold or

g. Inventories

consumed in the normal operating cycle

Inventories are measured at the lower of cost

Held primarily for the purpose of trading

and net realisable value. The cost of inventories is

Expected to be realised within twelve months after

based on the first-in first-out principle, and includes

the reporting period; or

expenditure incurred in acquiring the inventories

Cash or cash equivalent unless restricted from

and other costs incurred in bringing them to their

being exchanged or used to settle a liability for at

existing location and condition.

least twelve months after the reporting period All other assets are classified as non-current.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated

A liability is current when:

costs of completion and the estimated costs

necessary to make the sale.

It is expected to be settled in the normal operating cycle

h. Property, plant and equipment

It is held primarily for the purpose of trading

It is due to be settled within twelve months after

Capital work in progress and plant and equipment

the reporting period; or

are stated at cost, net of accumulated depreciation

There is no unconditional right to defer the

and accumulated impairment losses, if any. Such

settlement of the liability for at least twelve

cost includes the cost of replacing part of the

months after the reporting period

plant and equipment if the recognition criteria

are met. When significant parts of plant and The Club classifies all other liabilities as non-current.

equipment are required to be replaced at intervals, the Club depreciates them separately based on

e. Cash

their specific useful lives. Likewise, when a major

Cash in the statement of financial position

inspection is performed, its cost is recognised in

comprises cash at bank and on hand.

the carrying amount of the plant and equipment as a replacement if the recognition criteria are

For the purpose of the statement of cash flows,

satisfied. All other repair and maintenance costs

cash and cash equivalents consist of cash as

are recognised in profit or loss as incurred.

defined above. Depreciation is calculated on a straight-line basis f. Trade and other receivables Trade receivables, which generally have 30 day

over the estimated useful lives of the assets, as follows:

terms, are recognised and carried at original invoice amount less an allowance for any uncollectible

Buildings

amounts.

Plant and equipment

Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Club will not be able to collect the receivable.

Motor vehicles Course improvement

40 years 4 to 15 years 4 to 8 years 4 to 25 years

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain


34 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) or loss arising on derecognition of the asset

and value in use. For the purposes of assessing

(calculated as the difference between the net

impairment, assets are grouped at the lowest

disposal proceeds and the carrying amount of the

levels for which there are separately identifiable

asset) is included in the statement of profit or loss

cash inflows from other assets or groups of assets.

and other comprehensive income when the asset is

Non-financial assets, other than goodwill, that

derecognised.

suffered an impairment, are tested for possible reversal of the impairment whenever events

The residual values, useful lives and methods of

or changes in circumstances indicate that the

depreciation of property, plant and equipment are

impairment may have reversed.

reviewed at each financial year end and adjusted prospectively, if appropriate.

j.

Intangible assets Intangible assets acquired separately are measured

i.

Impairment

on initial recognition at cost. The cost of intangible

Non-financial assets, other than goodwill and

assets acquired in a business combination is their

indefinite life intangibles, are tested for impairment

fair value at the date of acquisition. Following initial

whenever events or changes in circumstances

recognition, intangible assets are carried at

indicate that the carrying amount may not be

cost less any accumulated amortisation and

recoverable.

accumulated impairment losses.

The Club conducts an annual internal review

The useful lives of intangible assets are assessed

of asset values, which is used as a source of

as either finite or indefinite.

information to assess for any indicators of impairment. External factors, such as changes

Intangible assets with finite lives are amortised

in expected future processes, technology and

over the useful economic life and assessed for

economic conditions, are also monitored for

impairment whenever there is an indication that the

indicators of impairment. If any indication of

intangible asset may be impaired. The amortisation

impairment exists, an estimate of the assets

period and the amortisation method for an

recoverable amount is calculated.

intangible asset with a finite useful life are reviewed at least at the end of each reporting period.

An impairment loss is recognised for the amount by

Changes in the expected useful life or the expected

which the asset’s carrying amount exceeds its

pattern of consumption of future economic benefits

recoverable amount. Recoverable amount is the

embodied in the asset are considered to modify the

higher of an asset’s fair value less costs to sell

amortisation period or method, as


ANNUAL REPORT 2016 | 35

appropriate, and are treated as changes in

conveys a right to use the asset or assets,

accounting estimates. The amortisation expenses

even if that right is not explicitly specified in an

on intangible assets with finite lives is recognised

arrangement.

in the statement of profit or loss and other comprehensive income in the expense category

A lease is classified at the inception date as a

that is consistent with the function of the intangible

finance lease or an operating lease. A lease that

assets.

transfers substantially all the risks and rewards incidental to ownership to the Group is classified as

k. Trade and other payables

a finance lease.

Trade and other payables are carried at amortised cost and due to their short-term nature they are

An operating lease is a lease other that a finance

not discounted. They represent liabilities for goods

lease. Operating lease payments are recognised as

and services provided to the Club prior to the end

an operating expense in the statement of profit or

of the financial year that are unpaid and arise

loss and other comprehensive income on a straight-

when the Club becomes obliged to make future

line basis over the lease term.

payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

n. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of an asset

l.

Interest-bearing loans and borrowings

that necessarily takes a substantial period of

All loans and borrowings are initially recognised

time to get ready for its intended use or sale are

at the fair value of the consideration received less

capitalised as part of the cost of the asset. All other

directly attributable transaction costs.

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

After initial recognition, interest-bearing loans and borrowings are subsequently measured at

o. Provisions

amortised cost using the effective interest method.

Provisions are recognised when the company has

Fees paid on the establishment of loan facilities

a present obligation (legal or constructive) as a

that are yield related are included as part of the

result of a past event, it is probable that an outflow

carrying amount of the loans and borrowings.

of resources embodying economic benefits will be required to

Borrowings are classified as current liabilities

settle the obligation and a reliable estimate can be

unless the Club has an unconditional right to defer

made of the amount of the obligation.

settlement of the liability for at least 12 months after the reporting date.

Provisions are measured at the present value of management’s best estimate of the expenditure

m. Leases

required to settle the present obligation at the

The determination of whether an arrangement is

reporting date. The discount rate used to determine

(or contains) a lease is based on the substance of

the present value reflects current market

the arrangement at the inception of the lease. The

assessments of the time value of money and the

arrangement is, or contains, a lease if fulfilment

risks specific to the liability. The

of the arrangement is dependent on the use of

increase in the provision resulting from the passage

a specific asset or assets and the arrangement

of time is recognised in finance costs.


36 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) p. Revenue

taken into account in determining taxable income,

Revenue is recognised to the extent that it is

the net related taxation benefit or liability,

probable that the economic benefits will flow to

calculated at current rates, is disclosed as a future

the Club and the revenue can be reliably measured,

income tax benefit or a provision for deferred

regardless of when the payment is received.

income tax. The net future income tax benefit

Revenue is measured at the fair value of the

relating to tax losses and timing differences is not

consideration received or receivable, taking into

carried forward as an asset unless it is probable

account contractually defined terms of payment

that the benefit will be realised.

and excluding taxes or duty. The directors have adopted a conservative stance The specific recognition criteria described below

in relation to the likelihood of realisation of future

must also be met before revenue is recognised.

income tax benefits in relation to timing differences and tax losses and have therefore not recognised

Sale of goods

them as an asset.

Control of the goods has passed to the buyer. Goods and services tax (GST) Rendering of services

Revenues, expenses and assets are recognised net

Control of the right to receive payment for the

of the amount of GST except where:

services performed has passed to the company. •

When the GST incurred on a sale or purchase of

Interest

assets or services is not payable to or recoverable

Control of the right to receive the interest payment

from the taxation authority, in which case the GST

has passed to the company as the interest accrues.

is recognised as part of the revenue or the expense item or as part of the cost of acquisition of the

q. Taxes Income taxes Tax-effect accounting is applied using the liability

asset, as applicable •

When receivables and payables are stated with the amount of GST included

method whereby income tax is regarded as an expense and is calculated on the accounting profit

The net amount of GST recoverable from, or

after allowing for permanent differences. To the

payable to, the taxation authority is included as

extent timing differences occur between the time

part of receivables or payables in the statement of

items are recognised in the financial statements

financial position. Commitments and contingencies

and when items are


ANNUAL REPORT 2016 | 37

are disclosed net of the amount of GST recoverable

changes are reflected in the assumptions when

from, or payable to, the taxation authority.

they occur.

Cash flows are included in the statement of cash

Taxes

flows on a gross basis and the GST component

Deferred tax assets are recognised for unused tax

of cash flows arising from investing and financing

losses to the extent that it is probable that taxable

activities, which is recoverable from, or payable

profit will be available against which the losses can

to, the taxation authority is classified as part of

be utilised. Significant management judgement is

operating cash flows.

required to determine the amount of deferred tax assets that can be recognised, based upon the

r. Comparatives Certain numbers of the prior period have been

likely timing and the level of future taxable profits, together with future tax planning strategies.

reclassified to be consistent with the current year’s disclosure presentation.

Impairment of intangibles with indefinite useful lives

1. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

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

The preparation of the Club’s financial statements

which the intangibles with indefinite useful lives are

requires management to make judgements,

allocated.

estimates and assumptions that affect the reported amounts of revenues, expenses, assets and

4. PRIOR PERIOD ERROR

liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty

Correction of a period error

about these assumptions and estimates could

In the financial statements for the year ended 30

result in outcomes that require a material

June 2008, the Club recognised an impairment

adjustment to the carrying amount of assets or

charge related to gaming machine entitlements

liabilities affected in future periods.

as the asset’s carrying value at the time was not considered recoverable. The Directors have

Estimates and assumptions

determined that an error was made in calculating

The key assumptions concerning the future and

this impairment charge after reconsidering the

other key sources of estimation uncertainty at the

requirements of Australian Accounting Standard

reporting date, that have a significant risk of

AASB136 Impairment of Assets.

causing a material adjustment to the carrying

The recoverable amount of the intangible asset did

amounts of assets and liabilities within the next

in fact exceed its carrying value at 30 June 2008

financial year, are described below. The Club based

andeach subsequent year end through to 30 June

its assumptions and estimates on parameters

2016.

available when the financial statements were prepared. Existing circumstances and assumptions

The error has been corrected by restating each of

about future developments, however, may change

the affected financial statement line items for the

due to market changes or circumstances arising

prior period as follows:

that are beyond the control of the Club. Such


38 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) 30 JUNE 2015

1 JULY 2014

Retained profits

2,675,747

2,675,747

Total members equity

2,675,747

2,675,747

Increase/(decrease) to statement of changes in Members’ equity

Increase/(decrease) to statement of financial position Intangible assets

2,675,747

Non-current assets

2,675,747

Total assets

2,675,747

Net assets

2,675,747

Retained profits

2,675,747

Total Members equity

2,675,747

5. Revenue and expenses 2016

2015

35,885,870

33,752,504

Liquor revenue

4,726,114

4,922,506

Catering revenue

6,906,927

6,974,877

Aquafit revenue

3,459,856

3,450,866

Rydges revenue

8,443,331

7,793,143

Golf course revenue

868,236

765,684

Entertainment receipts

520,266

404,891

Subscriptions

704,185

703,469

Commissions

365,047

362,359

Room and equipment hire

151,400

172,365

2,000

1,645

62,033,232

59,304,309

-

68,877

a. Sale of goods and services Gaming revenue

Other income b. Other income Net profit on sale of fixed assets


ANNUAL REPORT 2016 | 39

5. Revenue and expenses (continued) 2016

2015

c. Finance income Interest income - other corporation

54,898

74,885

d. Finance costs Interest expense - bank Interest expense - hire purchase

664,162 30,441

1,112,784 46,767

694,603

1,159,551

16,227,542

6,974,877

1,289,172

1,252,502

899,636

862,196

24,846

4,427

18,441,196

18,131,360

3,211,955

3,096,451

4,057,463

4,066,640

94,384

74,534

7,363,802

7,237,625

2016

2015

232,229

(18,995)

(232,229) -

2,076 16,919

-

-

e. Employee benefit expenses Wages and salaries Superannuation Payroll tax Fringe benefits tax

f. Depreciation expense buildings Plant and equipment Course improvements

6. Income tax NOTES a. The major components of income tax expense for the year ended 2016: Current income tax Current income tax charge/(benefit) Deferred tax Utilisation of carried forward tax losses Adjustments to opening timing differences Tax effect of timing differences not booked Income tax benefit reported in the statement of profit or loss and other comprehensive income

6(b)

b. A reconciliation of tax expense and accounting profit multiplied by Australia’s domestic tax rate for the year ended 2016 Accounting profit before tax

5,383,860

At Company’s statutory income tax rate of 30%

1,615,158

Member only income Member only expenses Other items (net) Effect of mutuality Current income tax charge

(1,222,057) 1,291,354 417,710 (1,869,936) 232,229


40 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) 6. Income tax (continued) At 2016, the Club had accumulated taxable losses of $656,242 (2015: $888,471) carried forward. Future income tax benefits have not been brought to account at balance sheet date as the directors do not believe that the realisation of the asset is probable. 7. Cash 2016

2015

2,120,567

6,515,675

2016

2015

Trade receivables

48,049

110,374

Allowance for doubtful accounts

(1,750) 46,299

(1,750) 108,624

509,150

295,255

555,449

403,879

2016

2015

271,406

277,574

Catering stock - at cost

94,925

78,472

Golf shop stock - at cost

35,867

32,736

402,198

388,782

Cash at bank and on hand For the purpose of the statement of cash flows, cash comprises the above. For details of commercial bill and bank overdraft facilities, refer to note 14. 8. Trade and other receivables

Current

Other receivables

9. Inventories

Liquor stock - at cost


ANNUAL REPORT 2016 | 41

10. Other assets 2016

2015

Current Prepayments Security deposits

295,692

319,071

14,000

14,000

309,692

333,071

11. Property, plant and equipment 2016

2015

3,100,343

3,100,343

At cost

133,688,819

124,093,638

Accumulated depreciation

(36,446,529)

(33,231,574)

97,242,290

90,862,064

5,221,530

2,434,424

26,325,678

29,932,055

(15,700,757)

(19,925,958)

10,624,921

10,006,097

92,947

32,384

(29,154)

(12,244)

63,793

20,140

At cost

1,146,692

999,132

Accumulated depreciation

(404,588)

(310,204)

742,104

688,928

817,518

817,518

(342,447)

(165,675)

475,071

651,843

At cost

170,393,527

161,409,494

Accumulated depreciation

(52,923,475)

(53,645,655)

Net carrying amount

117,470,052

107,763,839

Freehold land At cost Buildings

Net carrying amount Capital work in progress At cost Plant and equipment At cost Accumulated depreciation Net carrying amount Motor vehicles At cost Accumulated depreciation Net carrying amount Course improvements

Net carrying amount Leased plant and equipment At cost Accumulated depreciation Net carrying amount Total property, plant and equipment


42 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) 11. Property, plant and equipment (continued) Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the current and previous financial year. 2016 Freehold land At 1 July 2015

3,100,343

At 30 June 2016

3,100,343

Buildings At 1 July 2015 Additions

90,862,064 80,640

Transfers from work in progress

9,511,541

Depreciation charge for the year

(3,211,955)

Net carrying amount

97,242,290

Capital work in progress At 1 July 2015

2,434,424

Additions

13,328,736

Transfers to buildings

(9,511,541)

Transfers to course improvements

(106,779)

Transfers to plant and equipment

(923,310)

Net carrying amount

5,221,530

Plant and equipment At 1 July 2015 Additions Transfers from work in progress Disposals

10,06,97 3,741,187 923,310 (181,892)

Depreciation charge for the year

(3,863,781)

Net carrying amount

10,624,921


ANNUAL REPORT 2016 | 43

11. Property, plant and equipment (continued) 2016 Motor vehicles At 1 July 2015

20,140

Additions

60,563

Depreciation charge for the year Net carrying amount

(16,910) 63,793

Course improvements At 1 July 2015 Additions

688,928 40,781

Transfers from work in progress

106,779

Depreciation charge for the year

(94,384)

Net carrying amount

742,104

Leased plant and equipment At 1 July 2015 Depreciation charge for the year Net carrying amount

651,843 (176,772) 475,071

Total property, plant and equipment At 1 July 2015

107,763,839

Additions

17,251,907

Transfers from work in progress

10,541,630

Transfers to buildings

(9,511,541)

Transfers to course improvements

(106,779)

Transfers to plant and equipment

(923,310)

Disposals

(181,892)

Depreciation charge for the year Net carrying amount

(7,363,802) 117,470,052

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 14


44 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) Valuations The Club's land, buildings and plant and equipment were valued by Global Valuation Services in February 2015. These valuations were based upon the fair values in an open market of assets held at that time and were as follows: Land

$13,000,000

Buildings

$99,700,000

Plant and equipment

$11,258,522

The Club's Golf Course leasehold land improvements, buildings and plant and equipment were valued by Global Valuation Services in February 2015. These valuations were based upon the fair values in an open market of assets held at that time and were as follows: Leasehold land and building improvements

$4,720,000

Plant and equipment

$1,490,110

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. 12. Intangible assets 2016

2015

4,705,044

4,705,044

147,000

147,000

4,852,044

4,852,044

Poker machine licences At cost Holiday accommodation licences At cost Total intangibles At cost 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.


ANNUAL REPORT 2016 | 45

13. Trade and other payables 2016

2015

Trade payables

1,608,465

1,595,524

Other payables and accrued expenses

2,286,282

2,204,654

621,236

404,292

4,515,983

4,204,470

6,812

15,966

6,812

15,966

2016

2015

238,295

262,215

14,500,000

14,500,000

230,532

468,826

14,730,532

14,968,826

Current

Deferred revenue Non-current Deferred revenue

14. Interest-bearing loans and borrowings

Current Hire purchase liability Non-current Commercial bills Hire purchase liability

Terms and conditions The commercial bill facility of $25,000,000 (2015: $16,500,000) is a fixed term facility maturing in December 2018. The facility is a rolling commercial bill facility with commercial bills 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 commercial bills totalling $14,500,000 (2015: $14,500,000) at rates prevailing at the time of roll-over. At 30 June 2016, the average implicit interest rate on the outstanding commercial bills was 3.7% (2015: 3.7%). Hire purchase agreements have remaining terms ranging from 0.5 to 3.5 years and an average implicit discount rate of 5.5% (2015: 5.5%). 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 (2015: Nil). This facility has not been drawn in the current financial year.


46 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) 15. Provisions 2016

2015

2,460,178

2,467,631

455,989

420,407

2016

2015

65,650

65,072

Current Employee entitlements Non-current Employee entitlements 16. Other current liabilities

Staff deposits Terms and conditions

Staff deposits represent funds held by the company on behalf of staff under a staff Christmas saving plan. The deposits are non-interest bearing and are expected to be repaid in December 2016. 17. Commitments and contingencies a. Operating lease commitments Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows: 2016

2015

Within one year

25,472

26,644

After one year but not more than two years

24,570

26,304

-

24,570

50,042

77,518

After two years but not more than five years Total minimum lease payable


ANNUAL REPORT 2016 | 47

b. Hire purchase contracts 2016

2015

Within one year

257,773

295,246

After one year but not more than two years

237,134

257,772

-

237,134

Total minimum lease payable

494,907

790,152

Future finance charges

(26,081)

(59,111)

Hire purchase liability

468,826

731,041

Current liability

238,295

262,215

Non-current liability

230,532

468,826

468,826

731,041

After two years but not more than five years

Comprises:

c. Capital commitments Capital expenditure of $1,487,385 (2015: $6,859,599) has been contracted at balance date but not provided in the financial statements. d. Contingencies There were no contingencies as at the reporting date (2015: $nil). e. Non-core property The directors of the Club have not determined if any segment of the Club’s property is to be defined as noncore property in accordance with Section 41J of the Registered Clubs Act. Any proposal to classify a segment of the Club’s property as non-core property in accordance with Section 41J of the Registered Clubs Act will be considered by members at that time. 19. Related party information a. 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. b. 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: 2016

2015

68,500

56,833

Number

Number

$0 - $9,999

9

8

$10,000 - $19,999

1

1

Applicable income

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


48 | ANNUAL REPORT 2016

NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016 (CONTINUED) 19. Related party information (continued) 2016 c. Directors’ expenses Expenses incurred by directors

2015

-

62,057

Other transactions with related parties 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. d. 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. 20. 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. Chief Executive Officer Chief Financial Officer Chief Operating Officer Chief Marketing Officer General Manager Aquafit General Manager People & Culture General Manager Rydges Key management personnel compensation

Short-term Post-employment

2016

2015

1,518,050

1,213,711

126,468

93,039

1,644,518

1,306,750

21. Subsequent events There have been no events subsequent to reporting date which would have a material effect on the Club’s financial statements at 30 June 2016.


ANNUAL REPORT 2016 | 49

Directors’ declaration 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 the Campbelltown Catholic Club Limited for the financial year ended 30 June 2016 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 2016 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. Signed in accordance with a resolution of directors. David James Olsson Director 29 August 2016 David Michael McDonald Director 29 August 2016


50 | ANNUAL REPORT 2016


ANNUAL REPORT 2016 | 51



Campbelltown Catholic Club Annual report 2015-16