2021 Hornsby RSL Club Annual Report

Page 1

ANNUAL REPORT 2021


ACN - 002 513 251 Auditors - Brigden & Partners


CONTENTS

04

Board of Directors

22

Statement of Changes in Equity

05

Key Personnel

23

Statement of Cash Flows

06

Notice of Election

25

Notes to the Financial Statements

10

Annual General Meeting

42

Director's Declaration

17

Annual Financial Report

43

Independent Auditor's Report

20

Statement of Financial Position

46

ClubGRANTS

21

Statement of Profit or Loss and Other Comprehensive Income


Board of Directors

Rob Kennerley

Terence Clarke

President

Vice President

Denis Dempsey

Director

4

Norm Bakker

Director

Hornsby RSL Club Annual Report 2021

Mick Brodie

John Deane

Director

Director

Sharon Ho

John Warren

Director

Director


Key Personnel

Mario Machado

Daisy Brown

Andy Fung

Stuart Gabriel

Chief Executive Officer

Chief Operating Officer

Chief Financial Officer

Human Resources Manager

James Nicholas

Executive Chef

Gatsby Starkey

Food & Beverage Manager

David Reeve

Kellie Reeve

Gaming Coordinator & Compliance Officer

Employee Relations Manager

Steve Apostolou

Emma Strandquist

Luke Hay

Rachelle Smith

Venue Manager

Venue Manager

Venue Manager

Supervisor

Emma Ream

Tim Smith

Amy Cornale

Brie Sykes

Supervisor

Supervisor

Events Coordinator

Digital Coordinator

Andrew Hessel

Purchasing Officer

Indika Gajanayake

Stock Controller

Paul Barrow

Maintenance Manager

Hornsby RSL Club Annual Report 2021

5


Notice

of Election

A Mandatory course of instruction for candidates to the Board shall take place during the fourteen (14) days prior to each Annual General Meeting. The date(s) and time(s) of the course shall be advertised in the Notice of Election section of the

FOR THE BOARD OF DIRECTORS 2022

Annual Report. Once the date and time for the course of instruction is determined, a maximum of 10 minutes will elapse before the course starts, nominees not present at that time will not be

VOTING FOR BOARD OF DIRECTORS

eligible to attend the session after the 10 minutes

Nominations for the position of:

have expired.

Director (3 positions):

In accordance with the Club’s Constitution, in

Mick Brodie

order to be eligible for the election, candidates

John Deane

must attend this course.

Denis Dempsey Board Election Nomination and Acceptance Form CANDIDATES RESUMES

and Board Election Nominee Statutory Declaration.

Candidates to arrange suitable photograph for publication and submit same with brief resume to

Every candidate for election to any office must:

CEO’s office by 6.00 pm Friday 22 April 2022. Be proposed by one and seconded by another All Candidates Photographs to be same size.

Ordinary Member or Life Member; and

Personal details typed on same size form as photograph with only relevant details pertinent to

The candidate’s consent to nomination for Director

their interests in Club.

must first be obtained.

Chief Executive Officer to arrange Photographer to

The candidate’s name shall be posted on the Club’s

take suitable photographs of candidates for Board

Notice Board and every candidate must complete

of Directors.

a Board Election Nomination and Acceptance Form and the entry relating to the candidate’s

All Histories to be sent electronically to the CEO’s

nomination shall be signed by the candidate and

Executive Assistant in Microsoft Word format and

their proposer and seconder at which time the

prior to the date set each year.

candidate shall furnish proof of their membership of the Club and also complete the Board Election

Pertinent details in same order for each candidate:

Nominee Statutory Declaration.

i.e. Board Election Nomination and Acceptance Form NAME

and Board Election Nominee Statutory Declaration

DATE OF JOINING CLUB

can be obtained during office hours from the

DATE OF BIRTH

CEO’s Office (arrangements can be made to obtain

OCCUPATION

these forms outside office hours), from 9:30am on Monday 4 April 2022.

Resumes limited to a maximum of 200 words. Mandatory Course of Instruction for Candidates to

Once completed, Board Election Nomination and

the Board.

Acceptance Form and Board Election Nominee

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Hornsby RSL Club Annual Report 2021


Statutory Declaration Form, must be lodged with

VOTING TIMES

the CEO’s Office by 6pm, Friday 22 April 2022.

Tuesday 26th April 2022

Forms will not be accepted after this time.

12.00 pm to 8.00 pm

Mandatory course of instruction for candidates to

Wednesday 27th April 2022

the Board will take place on Tuesday 19 April 2022

12.00 pm to 8.00 pm

at 6.00pm and Friday 22 April 2022 at 6.00pm in

Thursday 28th April 2022

the Board Room. In accordance with the Club’s

12.00 pm to 8.00 pm

Constitution in order to be eligible for the election

Friday 29th April 2022

candidates must attend this course.

12.00 pm to 8.00 pm

Director Identification Number (DIN)

Saturday 30th April 2022 4.00 pm to 8.00 pm

The Director Identification Number (DIN) regime has been passed by parliament and is now law. Under the new law, all directors of companies registered under the Corporations Act 2001 will need to have one unique identifier. The DIN is unique to each director and is intended to help prevent the use of false or fraudulent director identities. Directors use the same DIN for all companies they are a director of.

result, it will be declared at the Annual General Meeting on Sunday 1 May 2022 at the appropriate time on the agenda. For further information, Members attention is drawn to the Club’s Constitution and By-Laws of Hornsby RSL Club Limited.

There are 3 methods to apply for a DIN, all will require various identification documents: 1. Online at the Australian Business Registry Services (ABRS) www.abrs.gov.au.

VOTING PROCEDURES Instructions for Election of Directors. 1. General - These instructions are in compliance with Hornsby RSL Club Constitution, the

2. By phoning the ABRS on 13 62 50. 3. Through lodgement of a paper application.

To be eligible to become a Director, you will need to obtain a DIN prior to the closing date for Nominations to the Board which is Friday 22 April at 6.00pm

When the Returning Officer has determined the

Corporations Act and the NSW Registered Clubs Act. 2. Triennial Election of the Board of Directors Hornsby RSL Club Limited shall conduct a secret ballot for the election of its Board of Directors in accordance with the Club’s Constitution to take place during the week prior to its Annual General Meeting.

WANTED - VOLUNTEER POLLING CLERKS Voting for the 2022 Board of Directors will be held at the Club from: Tuesday 26th April until Saturday 30th April 2022. Voting begins at 12 noon Monday to Friday and 4.00pm on Saturday. If you are able to assist as a Clerk, please contact Jaynie on 9485 3201 or jnovotny@hornsbyrsl.com.au

Hornsby RSL Club Annual Report 2021

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CONDUCT OF THE ELECTION OF BOARD

such area to be "out of bounds" to all Directors,

Chief Executive Officer shall be responsible for the

Members and Staff, during the period of the

provision of secret voting facilities in a section of

count.

the Club as directed by the Board of Directors. ii. Placing in a sealed envelope, the results of his The Election of the Board shall be conducted in

count, this envelope is to remain in his

accordance with rule 26 of the Club’s Constitution.

possession, to be opened by the Returning Officer, when requested to do so by the

VOTING /POLLING BOOTH FACILITIES

Chairman at the Annual General Meeting.

These facilities shall consist of:N.B. The Chief Executive Officer is to ensure i) Two (2) separate ballot booths.

adequate security in the event of the Returning Officer being on Club premises after the

ii) Table and Chairs for polling booth attendants.

departure of Club Staff.

iii) An up to date numerical membership register,

VOTING ELIGIBILITY

pens, pencils, rulers and highlighters for use by

All eligible financial Ordinary Members (except

polling booth attendants.

club staff) and Life Members of Hornsby RSL Club Limited shall be entitled to vote on producing

iv) A list of members of staff who are Club

a current membership card to polling booth

members and ineligible to vote.

attendants.

v) A board displaying photographs and resume of

Note: In accordance with the Club’s Constitution,

all Candidates

eligible members are members who have been financial members for at least 12 months before

Note: Details of candidate’s resumes shall be the

the date of the AGM.

Candidates responsibility. STAFF vi) Locked ballot boxes, the keys will be retained

Club Members who are also club staff are ineligible

by the Returning Officer.

to vote and are to be identified prior to any voting.

vii) Maintenance of and daily distribution to the

Chairman of the meeting is to request all staff

polling booth attendants of ballot papers and

move to a separate part of the room prior to any

instructions on the duties expected of them.

voting counts.

CLOSE OF BALLOT

Door attendants are to identify club staff names in

At the close of the ballot at 8.00pm on Saturday 30

the Annual General Meeting attendance book to

April 2022, the Chief Executive Officer shall hand

assist the scrutineer in vote count reconciliation.

all locked ballot boxes, voting tally sheets, and membership register to the Returning Officer.

VOTING i. There will be no postal, absentee or proxy

RETURNING OFFICER

voting.

The Returning Officer shall then be responsible for: ii. Votes shall only be cast at the polling booth. i. Counting and collating of all votes in an area as allocated by the Chief Executive Officer

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Hornsby RSL Club Annual Report 2021

iii. Votes cast in any other area of the Club shall


be declared invalid.

All Members in attendance are to receive two (2) drink tickets to the value of a schooner of beer and

iv. It is an offence for any Club or Staff Member to

one (1) Courtyard Voucher to the value of $18.00

move blank ballot papers from the polling booth

which are only valid for the day.

area to any other area of the Club. Note: In accordance with the Club’s Constitution HOW TO VOTE CARDS

eligible Members are Members who have been

Individual Candidates may produce/distribute how

financial Members for at least 12 months before

to vote cards providing:-

the date of the AGM.

a. A copy of such how to vote card is submitted

Showroom Doors close at 11.00am.

to the Chief Executive Officer prior to the opening of the ballot.

That the AGM important dates and Procedures as set out above be adopted.

b. How to vote cards must be signed/authorised by all the Candidate(s) concerned who are named in the document. c. How to vote cards will not be distributed within the precincts of any Club Building, Carpark or within 50 metres of either Club Foyer. Any member found in breach of this rule may be subject to disciplinary action. Any candidate found in breach of this rule may render themselves ineligible to nominate for any Candidature. d. Any Member giving misleading information or attempting to utilise their association with Hornsby RSL Club Limited may render themselves ineligible to nominate for any Candidature. e. How to vote cards will not be distributed by Club Staff. f. How to vote cards will not be produced employing Club staff, stationery and/or Club photocopying facilities. MEMBERS IN ATTENDANCE All Members in attendance are to produce their current financial membership card and sign the Annual General Meeting attendance book.

Hornsby RSL Club Annual Report 2021

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40th Annual General Meeting Sunday 1st May 2022 at 11am

for any broken period of less than a calendar

In the Club’s Showroom

month at the start or end of their term of office,

4 High St, Hornsby 2077

commencing on the date of this resolution and

Members attending will be required to present

Meeting of the Club; and

ending on the date of the next Annual General

their current membership card on entering the meeting.

(b)

That

each

Director

be

paid

an

AGENDA

member of the Board of Directors at the monthly

1. Announcement of quorum.

Levy where applicable) payable in arrears and

2. Apologies

less than a calendar month at the start or end of

3. Confirmation of Minutes of Annual General

this resolution and ending on the date of the next

honorarium in respect of his or her services as a rate of $1,083.33 (plus Superannuation Guarantee prorated on a daily basis for any broken period of their term of office, commencing on the date of

Meeting of members of Hornsby RSL Club Limited held 2nd May 2021.

Annual General Meeting of the Club. Explanatory Note – Ordinary Resolution 1:

4.To receive and consider the Audited Financial Report of Hornsby RSL Club Limited for year

Honoraria Under the Registered Clubs Act 1976 (NSW)

ended 31 December 2021.

(Registered Clubs Act), honoraria payable to

5. To receive and consider reports of Board of

ordinary resolution.

Directors and the President must be approved by

Directors and Auditor.

Members are advised that where required by law,

6. Declaration of Ballot for the election of

the Club will make superannuation contributions

Directors.

in addition to the honoraria at a level which is

7. To consider and, if thought fit, to pass the

with superannuation guarantee legislation. The

sufficient to ensure that the Club is compliant

following three (3) ordinary resolutions, namely:

amount of the proposed honorarium for the

ORDINARY RESOLUTION NUMBER 1

Superannuation Guarantee Levy where applicable)

(a)

That

the

President

be

paid

an

honorarium in respect of his or her services as a member of the Board of Directors at the monthly rate of $1,416.66 (plus Superannuation Guarantee Levy where applicable). Such honorarium is payable in arrears, and prorated on a daily basis 10

Hornsby RSL Club Annual Report 2021

President is an increase of $5,000 per annum (plus from last year’s honorarium. The amount of the proposed honoraria for Directors is an increase of $5,000 per annum (plus Superannuation Guarantee Levy where applicable) from last year’s honoraria.


ORDINARY RESOLUTION NUMBER 2

every Full Member of the Club, if those benefits are

That until the next Annual General Meeting, the

approved by ordinary resolution of the members.

members of the Club approve members of the

The benefits being authorised under Ordinary

Board receiving such of the following benefits and

Resolution 2 are generally consistent with those

advantages, (being benefits and advantages not

benefits authorised at the Club’s AGMs in recent

offered equally to every Full Member of the Club)

years.

as the Board shall from time to time approve: ORDINARY RESOLUTION NUMBER 3 (a)

The provision to each member of the

That the members of the Club approve that

Board, as required from time to time and at the

until the next Annual General Meeting, eligible

expense of the Club, a Directors Club Uniform, to

members may receive such of the following

be worn when attending to or carrying out his or

benefits (which are not offered equally to every

her duties as a member of the Board whether at

Full Member of the Club) as the Board shall from

the premises of the Club or otherwise.

time to time approve:

(b)

(a)

The provision to members of the Board

The

expenditure

by

the

Club

of

of one car parking space each in that part of the

reasonable sums in payment of the costs of

Club’s carpark as the Board shall from time to time

holding functions on the Club’s premises to

resolve to set aside for use by members of the

celebrate certain occasions, including but not

Board.

limited to the Life Members’ Dinner.

(c)

Reasonable expenditure for directors

(b)

The provision to life members of

to undertake training and education including

one monthly free meal and refreshment, at a

but not limited to industry related meetings,

reasonable cost.

organised study tours, seminars, trade displays etc. as may be determined by the Board, provided

(c)

all expenditure is supported by documentary

parking spaces in that part of the Club’s carpark

The provision to life members of car

evidence.

as the Board shall from time to time resolve to set aside for use by life members.

(d)

The provision to members of the Board

of a free meal and refreshment, at a reasonable

(d)

cost, on the day of attendance at Board Meetings,

Club to certain classes of person, including but

The provision of membership of the

Finance Meetings and other Committee Meetings.

not limited to Life Members of the Club and members of the Hornsby Branch of the Returned

(e)

The provision of an electronic device

and Services League of Australia, for a reduced fee.

(for example a laptop computer, iPad, tablet or other similar device) and internet access being

Explanatory Note – Ordinary Resolution 3:

made available to directors in respect of their

Member benefits

duties as directors of the Club.

Under the Registered Clubs Act, benefits given to certain members (which are not available to every

Explanatory Note – Ordinary Resolution 2:

Full Member of the Club) may be given if those

Director Benefits

benefits are approved by ordinary resolution of

Under the Registered Clubs Act, benefits may be

the members.

given to Directors, which are not also available to Hornsby RSL Club Annual Report 2021

11


The benefits being authorised under Ordinary

phrase “only one (1) candidate” and replacing it

Resolution 3 are being conferred on Life Members

with the phrase “no more than two (2) candidates”

(who have been elected to this category for their

so that the new Rule 10.7 reads as follows:

outstanding service to the Club) and certain other members, and are generally consistent with such

10.7

benefits authorised at the Club's AGMs in recent

at an Annual General Meeting and no more than

Life membership may only be conferred

years.

two (2) candidates for Life membership can be submitted at such meeting.

8. To consider and, if thought fit, to pass each of the following six (6) special resolutions,

Explanatory Note – Special Resolution 2

namely:

The Board feels that it would be appropriate to increase the number of candidates who can be

SPECIAL RESOLUTION 3

elected to Life Membership at an Annual General

That the Constitution of Hornsby RSL Club Ltd

Meeting.

be amended by deleting the words “Rule 10.6” in existing Rule 10.6A and replacing it with the words

The existing rule has prevented the Club from

“Rule 10.5”, so that the new Rule 10.6A reads as

awarding Life membership to more than one

follows:

candidate in a year, which in a recent instance prevented the nomination of a highly suitable

10.6A

An ordinary member who joins the Club

candidate from being presented to an AGM who

after the Annual General Meeting in 2017 shall not

then passed away before being elected to Life

be entitled to the rights in paragraphs (b), (d), (e),

membership.

(f) and (g) of Rule 10.5 until the first anniversary of the date that the member was admitted to

SPECIAL RESOLUTION 3

membership of the Club according to the Club’s

That the Constitution of Hornsby RSL Club Ltd be

Register of Members.

amended by:

Explanatory Note – Special Resolution 1 Special

Resolution

1

seeks

to

correct

• deleting Rule 14.4(d) and renumbering the a

paragraphs in Rule 14.4 accordingly;

typographical error contained in existing Rule

• deleting the words “and address” in existing Rule

10.6A, which details the rights of the Club’s

14.8; and

Ordinary members who were admitted to the

• deleting the word “and” in Rule 17.1(a)(i);

Club’s membership after the Club’s 2017 Annual

• inserting the word “and” at the end of Rule 17.1(a)

General Meeting.

(iv); and • deleting Rule 17.1(a)(ii), and renumbering the sub-

Existing Rule 10.6A includes an incorrect reference

paragraphs in Rule 17.1(a) accordingly.

to Rule 10.6 as the rule which sets out the rights attaching to the Club’s Ordinary membership

Explanatory Note – Special Resolution 3

class, when it is Rule 10.5 that sets out these rights.

The Registered Clubs Act previously required the Club secretary to display both the name and

SPECIAL RESOLUTION 2

address of each candidate for the Club’s Ordinary

That the Constitution of Hornsby RSL Club Ltd

membership class in a conspicuous place at the

be amended by deleting in existing Rule 10.7 the

Club’s premises. It also required clubs to collect

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Hornsby RSL Club Annual Report 2021


details of a candidate’s occupation and record it in

While proposed new Rule 29.1 will impose a

the Club’s membership register.

minimum requirement of 4 meetings per calendar

The Registered Clubs Act was amended in

year, it enables the Board to meet more frequently

November 2021 to remove the need to display the

if it so determines.

address, or to collect and record the occupation of membership applicants. These changes better

SPECIAL RESOLUTION 5

maintain the applicants’ privacy.

That the Constitution of Hornsby RSL Club Ltd be amended by deleting existing Rules 43.1(c) and

Accordingly, Special Resolution 3 is being proposed

Rule 43.1(d) and replacing them with the following

to update those rules in the Constitution which

new Rules 43.1(c) and Rule 43.1(d):

provided for those old requirements.

This will

allow the Club to maintain consistency with these

43.1

recent changes to club legislation.

electronic address recorded for that member, as

(c)

by

sending

it

to

the

provided by that member to the Club; or SPECIAL RESOLUTION 4 That the Constitution of Hornsby RSL Club Ltd

(d)

be amended by deleting existing Rule 29.1 and

information in physical or electronic form to

by sending the recipient sufficient

inserting a new Rule 29.1 as follows:

allow the recipient to access it electronically, in accordance with the Act and the Registered Clubs

“29.1

The Board may meet together for

Act.

the dispatch of business, adjourn and otherwise regulate its meetings as it thinks fit provided

Explanatory Note – Special Resolution 5

that the Board shall meet whenever it deems

The Registered Clubs Act was amended to

it necessary but at least once every three (3)

expressly permit clubs to electronically distribute

calendar months for the transaction of business.”

notices of, or information about, meetings or Board elections (subject to certain requirements

Explanatory Note – Special Resolution 4

under the Registered Clubs Act).

Existing Rule 29.1 of the Constitution requires the Board to meet at least once a month for the

As a company, the Club remains subject to the

purposes of deliberating on matters relating to

Corporations Act which is scheduled to have

the Club’s business and affairs. This reflects the

changes

requirements under the Registered Clubs Act prior

permitting companies to give notices electronically,

to its amendment in late November 2021.

again subject to meeting requirements under

come

into

the Corporations Act.

effect

shortly

similarly

These changes make

The amendments to the Registered Clubs Act have

permanent some of the temporary measures

reduced the frequency at which club directors

introduced after the pandemic to assist clubs in

are required to meet.

Under the amendments,

convening meetings. The changes will also make

the Club’s Board must now meet at least once on

the giving of notices for Annual General Meetings

a quarterly basis, which amounts to a minimum

more cost-effective and efficient.

of 4 times per calendar year. Therefore, Special Resolution 4 proposes to update Rule 29.1 to

If members choose, they can expressly elect in

reflect this legislative change.

writing to still receive such documents in physical form.

Hornsby RSL Club Annual Report 2021

13


Special Resolution 5 proposes to ensure the

9.

Constitution is consistent with those legislative

pass the following Ordinary Resolution for Life

To consider and, if thought fit, to

changes.

Membership:

SPECIAL RESOLUTION 6

That Life Membership of Hornsby RSL Club Limited

That the Constitution of Hornsby RSL Club Ltd

be conferred on Peter Quirke Member 9805.

be amended by inserting the following new subheading and new Rule 35.41:

Mover:

Jeanette O’Keeffe

Member 1861 TECHNOLOGY 35.41

Notwithstanding

anything

in

this

Constitution but subject to the Corporations Act

Seconder:

Brian O’Keeffe

Member 2487

and the Registered Clubs Act, the Club may: 10.

To notify members of any expression

hold a meeting (including any general

of interest in an amalgamation, or any unsolicited

meeting) of the Club or the Board at which all or

merger offer, received by the Club from any other

some persons can attend by electronic means,

registered club in the previous 12 months before

provided that any person who speaks at the meeting

the Annual General Meeting (if any has been

can be heard by other persons in attendance and

received).

(a)

that, if a General Meeting, members as a whole have a reasonable opportunity to participate in

11.

General Business

the General Meeting; and GENERAL NOTES FOR MEMBERS (b)

allow any member entitled to vote at

1

Each Ordinary Resolution (including

meetings (including a General Meeting) of the Club

the Ordinary Resolution for Life Membership) will

or the Board to cast that vote electronically.”

be passed if at least a simple majority of those members who are present and cast their votes on

Explanatory Note – Special Resolution 6

the Ordinary Resolution (being entitled to do so),

The Registered Clubs Act was also amended to

vote in favour of the Ordinary Resolution.

enable clubs to now hold meetings electronically (subject to certain requirements under the

In accordance with Rules 10.5, 10.6A and 10.12 of

Registered Clubs Act) and allow eligible members

the Constitution, the following members who

to vote at meetings by electronic means.

attend the meeting are entitled to vote on the Ordinary Resolutions:

These will similarly increase some efficiencies for the Club, noting that it is not required to

(a)

introduce the change but the Club may choose to

were Ordinary members prior to the Club’s 2017

all financial Ordinary members who

implement electronic voting or hold the meeting

Annual General Meeting;

in part electronically (such as via Zoom). Whilst that would not be a preferred option for the

(b)

Club’s general meetings, it merely seeks to reflect

became Ordinary members of the Club after the

that flexibility under the new legislation in its

Club’s 2017 Annual General Meeting and have held

Constitution.

at least 1 years’ continuous membership from the

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Hornsby RSL Club Annual Report 2021

all financial Ordinary members who


date of their admission to the Club’s membership; and (c)

all Life members.

2

Each Special Resolution will be passed

if at least a 75% majority of those members who are present and cast their votes on the Special Resolution (being entitled to do so) vote in favour of the Special Resolution. Those members present at the meeting and entitled to vote on the Ordinary Resolutions above are also entitled to vote on the Special Resolutions. 3

The

Special

Resolutions

must

be

considered as a whole and the substance of the resolutions cannot be amended by motions from the floor of the meeting. 4

Members will be given a reasonable

opportunity to speak and ask questions at the meeting. 5

Proxy voting is not permitted and

employees are prohibited from voting under the Registered Clubs Act.

Dated: 23rd February 2022 By direction of the Board

Mario Machado Chief Executive Officer Hornsby RSL Club Annual Report 2021

15


16

Hornsby RSL Club Annual Report 2021


Annual

Financial Report

DIRECTORS REPORT Your directors have pleasure in submitting to

The short-term objectives of the Club are to make

members their annual report on the Hornsby RSL

continuous improvements towards excellence in

Club Limited (the Club) covering year ended 31

serving our members and community; reduce debt

December 2021.

and implement revenue diversification strategies to ensure long-term financial sustainability.

OPERATIONS The long-term objectives of the Club are to maintain The principal activity of the Club is the operation

the Anzac tradition and support the RSL movement,

of licensed premises, including the provision of

support our affiliated sub-clubs, charities and

sporting, social and entertainment activities for

community organisations, and achieve excellence

members of the Club. The income from those

in serving our community by providing exceptional

activities is directed towards the improvement

customer service and premium recreational and

and maintenance of the Club’s facilities and the

leisure facilities in order to remain relevant to our

promotion of the social welfare of members

members and the local community.

including affiliated sub-clubs. The strategy for achieving these objectives is to There were no significant changes to this activity

remain financially viable by adopting prudent

during the financial year.

financial management, whilst incorporating best practice corporate governance standards.

COVID-19 Pandemic - the Club’s operations continued to be significantly impacted by the

Measurement of performance: The Club measures

COVID-19 pandemic and the resulting public health

its overall performance from the implementation of

restrictions to combat the virus in 2021. The Club

its mission statement and strategic plan through the

was closed for four months and since reopening

performance of the Club against financial budgets,

in October, has been required to operate at a

operating plans and by benchmarking identified

reduced capacity whilst incurring additional costs.

key performance indicators (KPIs) against industry

The Club did benefit from the NSW government’s

best practice.

economic response to the pandemic namely, the JobSaver wage subsidy. Although the public health

The Board of Directors meet monthly to review

restrictions are easing, there is a general reticent

and evaluate the Clubs operating and financial

amongst the public to use entertainment and

performance and the Board meets a minimum of

hospitality facilities, and so the financial impact of

once per year to review and monitor the club’s

COVID-19 continues to be felt in 2022.

strategic plan.

Hornsby RSL Club Annual Report 2021

17


Annual

Financial Report

DIRECTORS' PARTICULARS

Investigating/Disciplinary

Robert Kennerley

Wai Han Ho (Sharon)

President, Director 7 Years

Appointed Director 2 Year

Committees – Building, Renumeration and Audit,

Committees - Remuneration and Audit,

Investigating/Disciplinary

Investigating/Disciplinary, Sports Secretary

Michael Brodie

John Warren

Director 28 Years, Life Member

Director 1 year

Committees - Remuneration and Audit,

Committees - Building, Remuneration and Audit,

Investigating/Disciplinary

Investigating/Disciplinary

John Deane

Director 32 Years, Life Member, JP Committees - Remuneration and Audit, Investigating/Disciplinary

DIRECTORS MEETINGS

Norm Bakker DIRECTORS

ELIGIBLE TO ATTEND

MEETINGS ATTENDED

R. Kennerley

14

14

M. Brodie

14

14

J. Deane

14

14

Director 9 Years

N. Bakker

14

14

Committees - Building, Remuneration and Audit,

D. Dempsey

14

13

T. Clarke

14

13

Terence Clarke

S. Ho

14

14

Vice President, Director 5 Years

J. Warren

14

14

Director 17 Years Sports Secretary Committees - Remuneration and Audit, Investigating/Disciplinary Denis Dempsey

Investigating/Disciplinary

Sports Convener Committees - Building, Remuneration and Audit,

18

Hornsby RSL Club Annual Report 2021


MEMBERSHIP LIABILITY The Club is incorporated under the Corporation Act 2001 and is a company limited by guarantee. If the Club is wound up, the constitution states that each member is required to contribute $2.00 towards meeting the outstanding obligations of the Club. Further details of this liability can be found at Note 23 of the financial statements. AUDITORS INDEPENDENCE DECLARATION The lead auditor’s independence declaration for the year ended 31 December 2021 has been received and is included with the financial report. Made and signed in accordance with a resolution of the Board of Directors on 23 February 2022.

Robert Kennerley

Terence Clarke

Director

Director

AUDITOR’S INDEPENDENCE DECLARATION This declaration is made under Section 307C of the Corporations Act 2001 to the Directors of Hornsby RSL Club Limited. As lead auditor of Hornsby RSL Club Limited, I declare that, to the best of my knowledge and belief, during the year ended 31 December 2021 there has been: (a) no contraventions of the auditor independence requirements as set out in 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.

David SMITH – DIRECTOR BRIGDEN & PARTNERS PTY LTD CHARTERED ACCOUNTANTS HORNSBY – 23 February 2022 Hornsby RSL Club Annual Report 2021

19


STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021 Notes

2021 ($)

2020 ($)

5,624,080

CURRENT ASSETS Cash and cash equivalents

4

5,111,901

Trade and other receivables

5

51,585

75,139

Inventories

6

334,490

244,821

Other current assets

8

TOTAL CURRENT ASSETS

343,323

321,262

5,841,299

6,265,302

NON-CURRENT ASSETS Financial assets

7

15,000

15,000

Property, plant & equipment

9

86,865,093

85,559,572

Intangible assets

10

1,956,224

1,956,224

Deferred tax assets

11

139,557

200,412

88,975,874

87,731,208

94,817,173

93,996,510

TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables

12

2,625,828

2,712,917

Financial liabilities

13

942,788

2,133,247

Employee benefit liabilities

14

1,137,984

1,208,123

Other current liabilities

16

139,776

127,414

4,846,376

6,181,702

2,169,911

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Financial liabilities

13

4,341,916

Employee benefit liabilities

14

193,129

161,850

Deferred tax liabilities

15

6,394,141

6,394,141

Other non-current liabilities

16

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES

176,014

176,227

11,105,200

8,902,129

15,951,576

15,083,831

78,865,597

78,912,680

Accumulated Funds

42,258,463

42,305,546

Asset Revaluation Reserve

36,552,034

36,552,034

NET ASSETS MEMBERS FUNDS

Members Benefit Fund TOTAL MEMBERS FUNDS

55,100

55,100

78,865,597

78,912,680

94,817,173

93,996,511

Total Liabilities & Members Funds

20 The accompanying notes form part of these financial statements


STATEMENT OF PROFIT AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2021 Notes

2021 ($)

2020 ($)

21,635,385

Revenue: Revenue from contract with customers

2

22,640,047

Other income

2

895,275

3,310,792

23,535,322

24,946,177

Cost of goods sold

2,750,168

2,758,504

Employee benefit expenses

8,071,272

9,412,095

Marketing & entertainment

1,279,165

988,481

Poker machine gaming tax

3,549,773

3,437,362

Total Revenue and Other Income Expenses:

Poker machine monitoring fees

154,679

132,977

2,262,202

2,101,799

Security expenses

287,160

270,776

Welfare, ClubGrants & Sub-Clubs

220,667

185,312

Other expenses

767,790

847,240

19,342,876

20,134,546

4,192,446

4,811,631

Property & maintenance

Earnings before Interest & Depreciation Interest Income

94

467

Finance costs

2

(98,407)

(183,232)

Depreciation & amortisation

2

(4,080,361)

(3,987,904)

Net Profit before income tax

2

13,772

640,962

Income tax expense (benefit)

3

60,855

-

(47,083)

640,962

-

-

(47,083)

640,962

Net profit for the year Other Comprehensive Income Total other comprehensive income for the year

Total comprehensive income attributable to members of the entity

The accompanying notes form part of these financial statements

21


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2021

Balance as at 31 December 2019

ACCUMULATED FUNDS

ASSET REVALUATION RESERVE (A)

MEMBERS BENEFIT FUND (B)

TOTAL

41,662,284

36,552,034

57,400

78,271,718

640,962

-

-

640,962

Net profit (loss) attributable to members of the entity Transfer from members benefit fund: - for payment of death benefits

900

-

(900)

-

1,400

-

(1,400)

-

42,305,546

36,552,034

55,100

78,912,680

(47,083)

-

-

(47,083)

Transfer from members benefit fund:

-

-

-

-

- for payment of death benefits

-

-

-

-

42,258,463

36,552,034

55,100

78,865,597

- to reflect non-renewing members Balance as at 31 December 2010 Net profit (loss) attributable to members of the entity

- to reflect non-renewing members Balance as at 31 December 2021

(a)

Asset Revaluation Reserve

The asset revaluation reserve records revaluations of non-current assets. Generally the balance in the reserve will reflect the after tax unrealised gain on non-current assets. The Club's land and buildings were revalued as at 31 December 2018. (b)

Members Benefit Fund

The members benefit fund is an amount set aside for the payment of funeral benefits to eligible members. The payment of this benefit is at the discretion of the Directors, and at balance date there were 19 members eligible for a $500 benefit and 152 eligible for a $300 benefit.

22

The accompanying notes form part of these financial statements


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021 Notes

2021 ($)

2020 ($)

Cash Flows From Operations: Receipts from members & guests Payments to suppliers & employees Government support payments Interest received

25,253,301

24,069,609

(21,979,327)

(22,069,995)

716,496

3,112,000

94

467

(139,072)

(124,301)

3,851,492

4,987,780

Furniture, plant & equipment

(2,954,790)

(3,878,507)

Land & building additions/ renovations

(2,431,092)

(104,253)

(5,385,882)

(3,982,760)

Financing costs paid Net Operating Cash Flows

19

Cash Flows From Investments: Asset purchases -

Net Investment Cash Flows

Cash Flows From Financing: Asset finance borrowings

1,032,790

-

Asset finance repayments

(636,895)

(738,148)

Borrowings received

2,050,000

2,000,000

Repayment of borrowings

(1,423,684)

(497,207)

Net Financing Cash Flows

1,022,211

764,645

Net Surplus/(Deficit) in Cash Flows

(512,179)

1,769,665

Cash at the Beginning of the Year Cash at Year End

19

5,624,080

3,854,415

5,111,901

5,624,080

The accompanying notes form part of these financial statements

23


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

24 The accompanying notes form part of these financial statements


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

The financial report is for Hornsby RSL Club Ltd

financial statements have been rounded to the

(“the Company/Club”) as an individual entity for the

nearest dollar.

year ended 31 December 2021 and was authorised for issue in accordance with a resolution of the

The financial report has been prepared on a going

directors on 23 February 2022.

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

The Club is a company limited by guarantee,

assets and settlement of liabilities in the ordinary

incorporated and domiciled in Australia. The Club

course of business. The Directors considered the

is a not-for-profit entity for financial reporting

profitability, liquidity and solvency of the Club and

purposes

have concluded that the use of the going concern

under

the

Australian

Accounting

Standards.

assumption in the preparation of the financial report is appropriate.

The Club’s registered office and business address is 4 High Street Hornsby NSW 2077.

Bother the functional and presentation currency of the Club is Australian dollars ($).

1. SUMMARY OF ACCOUNTING POLICIES

Accounting Policies (a)

Basis of Preparation The financial statements are a general purpose financial report and have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements (RDR) (including Australian Accounting Interpretations) and the Corporations Act 2001.

Revenue -

Revenue is recognised in

the accounts from the sale of goods and services upon delivery of the goods and services. Revenue is measured based on the cash or cash equivalent consideration received, after deducting discounts. The Club operates a member loyalty and rewards program whereby members accumulate points for

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the

dollars spent. The redemption of points for Club products and services is treated as revenue at the time of sale, with a corresponding expense at that time. Interest revenue is recognised on an accruals basis in the period it is derived. (b)

Goods & Service Tax (GST) - Revenues,

expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables

Notes to the financial statements for the year ended 31 December 2020 2021

25


and payables in the statement of financial position

periods when the freehold land and buildings

are shown inclusive of GST.

are not subject to an independent valuation, the directors assess whether the carrying values for the

Cash flows are presented in the statement of

land and buildings are materially different to the

cash flows on a gross basis, except for the GST

fair value.

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

Increases in the carrying amount arising on revaluation of land and buildings are recognised

(c)

Cash and Cash Equivalents - Cash and

in other comprehensive income and accumulated

cash equivalents include cash on hand, deposits

in the revaluation reserve in members’ equity.

held at-call with banks, other short-term highly

Revaluation decreases that offset previous increases

liquid investments with original maturities of three

of the same class of assets shall be recognised in

months or less, and bank overdrafts. Bank overdrafts

other comprehensive income under the heading

are shown within short-term borrowings in current

of revaluation gain/loss. All other decreases are

liabilities on the statement of financial position.

charged to the statement of comprehensive income.

(d)

Trade and Other Receivables - Trade

and other receivables represent the principal

Any accumulated depreciation at the date of the

amounts due at balance date less where applicable

revaluation is eliminated against the gross carrying

a provision for doubtful debts. These accounts are

amount of the asset and the net amount is restated

generally non-interest bearing on 30-day terms

to the revalued amount of the asset.

and are treated as current assets. A provision for

Plant and equipment are measured on the cost basis

doubtful debt is recognised when there is objective

less accumulated depreciation and impairment

evidence that an account is impaired.

losses.

Due to the short-term nature of these receivables,

The carrying amount of plant and equipment is

the carrying value is assumed to equal the fair value.

reviewed annually by directors to ensure it is not more than the recoverable amount from these

(e)

Inventories - Inventories are measured

at the lower of cost or net realisable value.

assets. The recoverable amount is assessed based on the expected net cash flows that will be received from the assets employment and subsequent

Due to the relatively short shelf life and quick

disposal. The expected net cash flows have been

turnover (less than 30 days) the Club does not

discounted to their present values in determining

recognise catering stock as inventory but rather

recoverable amounts.

expenses the cost at the time of purchase. Depreciation The depreciable amount of all fixed (f)

Property, Plant and Equipment, and

assets including buildings and capitalised lease

Depreciation - Each class of property, plant and

assets, but excluding freehold land, is depreciated

equipment is carried at cost or fair values as

on a straight-line basis over the asset's useful life

indicated, less, where applicable, accumulated

to the entity commencing from the time the asset

depreciation and impairment losses.

is held ready for use. The depreciable amount of buildings includes revaluations where applicable.

Freehold land and buildings are shown at their fair value based on periodic valuations by an independent valuer, less subsequent depreciation for buildings and accumulated impairment. In

26 Notes to the financial statements for the year ended 31 December 2021 2020


Depreciation rates:

If such indication exists, then the recoverable amount of the asset is compared to the carrying

Buildings

2.5% - 5%

value, and any excess in carrying value over the

Plant & Equipment

7.5% - 25%

recoverable amount is expensed to the statement

Poker machines

25%

of comprehensive income.

(g)

Investment

Properties

-

Properties

Where the future economic benefits of the asset

that are held to earn rentals and/or for capital

are not primarily dependent upon the asset's

appreciation are defined as investment properties.

ability to generate net cash inflows and when the

Investment properties are initially measured at

entity would, if deprived of the asset, replace its

cost, including transaction costs. Subsequent to

remaining future economic benefits, value in use is

initial recognition, investment properties are stated

determined as the depreciated replacement cost of

at fair value.

an asset.

(h)

(k)

Intangible Assets - Gaming machine

Trade and Other Payables - Trade and

entitlements are initially recognised at their

other payables represent the liability outstanding

acquisition cost. Entitlements acquired or granted

at the end of the reporting period for goods and

for no cost are not brought to account. Entitlements

services received by the company during the

have an indefinite life and so their costs are not

reporting period, which remain unpaid. The balance

amortised. The carrying value is assessed annually

is recognised as a current liability with the amounts

for impairment.

normally paid within 30 days of recognition of the liability.

(i)

Financial

Instruments

-

Financial

instruments are accounted for in accordance with

Due to the short-term nature of these payables, the

AASB 9: Financial Instruments – Measurement and

carrying value is assumed to equal the fair value.

Recognition. Broadly, financial assets and financial liabilities are

(l)

recognised when the entity becomes a party to

been made for long service leave and annual leave

Employees’ Benefits - Provision has

the contractual provisions to the instrument. For

in accordance with statutory requirements, based

financial assets, this is equivalent to the date that

on pro rata entitlement on the wage and salary

the Company commits itself to either purchase or

levels, including salary on-costs, of employees at

sell the asset (ie trade date accounting is adopted).

reporting date.

Financial instruments are initially measured at

The long service leave provision applies only to

fair value plus transactions costs except where

those employees who have completed at least

the instrument is classified “at fair value through

five years’ service with the Club, which is based

profit or loss” in which case transaction costs are

on experience of staff turnover. The amounts

expensed to profit or loss immediately.

attributable to employees with at least ten years’ service is shown as a current liability, and the

(j)

Impairment of Assets

- At each

balance is shown as a non-current liability.

reporting date the Club reviews the carrying values of its tangible and intangible assets to determine

Employee benefits that are expected to be settled

whether there is any indication that those assets

within one year have been measured at the amounts

have been impaired.

expected to be paid when the liability is settled. Employee benefits that are payable later than one year have been calculated using a nominal value

Notes to the financial statements for the year ended 31 December 2020 2021

27


basis rather than the standards based present value

Deferred

of future cash flows method, however the result

temporary differences and unused tax losses are

tax

assets

arising

from

deductible

under each of these methods is not materially

recognised only to the extent that it is probable

different.

that future taxable profit will be available against which the deferred tax assets can be utilised.

Superannuation contributions are made to an employee superannuation fund and charged as

The Club is a non-profit entity and can apply the

expenses in the period in which they are incurred.

“principle of mutuality” whereby net income derived from members is exempt from income tax.

(m)

Leases -

(1) Club as Lessee – Finance leases that transfer

(o)

substantially all the risks and benefits incidental

Classification - The Club presents assets and

Current

versus

Non-Current

to ownership of the leased item to the Club, are

liabilities in the statement of financial position

capitalised at the commencement of the lease at

based on current/non-current classification.

the fair value of the leased property or, if lower, at the present value of the minimum lease payments.

An asset is current when it is: expected to be realised, sold or consumed in the normal operating

Lease payments are apportioned between finance

cycle; held for the purpose of trading; expected to

charges and reduction of the lease liability so

be realised within twelve months after reporting

as to achieve a constant rate of interest on the

date; or cash or cash equivalent. All other assets are

remaining balance of the liability. Finance charges

classified as non-current.

are recognised in finance costs in the statement of profit or loss and other comprehensive income.

A liability is current when it is expected to be settled in the normal operating cycle; held primarily

(2) Club as Lessor – rental income from operating

for trading; due to be settled within twelve months

leases is recognised as revenue in the period it is

after the reporting date; or there is no unconditional

earned.

right to defer settlement of the liability for at least twelve months after reporting date. All other

(n)

Income Tax - Income tax expense for

liabilities are classified as non-current.

the year comprises current income tax expense and deferred income tax expense. Current income

(p)

tax expense charged to the profit and loss is tax

by Accounting Standards comparative figures

Comparative Figures - Where required

payable on taxable income calculated using current

have been adjusted to conform with changes in

tax rates as at reporting date. Current tax liabilities

presentation for the current financial year. When an

are therefore the amounts expected to be paid in

entity applies an accounting policy retrospectively,

the forthcoming financial year.

makes a retrospective restatement or reclassifies items in its financial statements, a statement of

Deferred income tax expense reflects movements

financial position as at the beginning of the earliest

in the deferred tax asset and deferred tax liability

comparative period must be disclosed.

balances during the year as well as where applicable unused tax losses.

(q)

Significant

Accounting

Estimates,

Judgements and Assumptions - The directors Deferred tax assets and liabilities are ascertained

evaluate estimates, judgments and assumptions

based on temporary differences between the tax

incorporated in the financial statements based on

bases of assets and liabilities and their carrying

historical knowledge and best available current

amount in the financial statements.

information. Estimates assume a reasonable

28

Notes to the financial statements for the year ended 31 December 2021 2020


expectation of future events and are based on current trends and economic data, obtained both externally and within the company. The Directors review these key estimates, assumptions and judgements annually. The key estimates used are: (1) Useful lives of fixed assets are estimated to calculate depreciation rates. (2) Future cash flows are estimated to calculate net present values for impairment calculations and for long-term liabilities. (3) Member loyalty program liability for points redemption. (r)

Changes

in

Accounting

Policies,

Disclosures, Standards and Interpretations - During the current year the company adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory. The new or amended Australian Accounting Standards that apply for the first time in this financial year do not have a significant impact on the disclosures in the Club’s financial statements or the measurement of the Club’s revenue, expenses, assets and liabilities.

Notes to the financial statements for the year ended 31 December 2020 2021

29


2. REVENUE & EXPENSES The following specific items are included in the net profit for the year:

2021 ($)

2020 ($)

(a) Revenue from contracts with customers: Revenue from sale of goods

6,466,521

6,248,345

Revenue from services

16,173,526

15,387,040

22,640,047

21,635,385

22,640,047

21,635,385

22,640,047

21,635,385

22,473,307

21,442,804

Geographical Markets - Australia

Timing of Revenue Recognition - Goods and services at point of time - Services transferred over time

166,740

192,581

22,640,047

21,635,385

subsidies*

716,496

3,112,000

- Other income

178,778

198,792

895,274

3,310,792

- Bank interest

61,776

110,227

- Hire purchase charges

36,641

73,005

98,407

183,232

* (b) Other Income - Government COVID support payments and

(c) Finance costs:

(d) Depreciation & amortisation - buildings

1,018,431

1,017,291

- gaming equipment

1,510,171

1,674,146

1,537,140

1,296,467

- other plant & equipment - loss on disposal of fixed assets

14,619

-

4,080,361

3,987,904

51,000

45,000

(e) Auditor's remuneration: - audit of the financial statements - fees for other services

8,020

8,000

59,020

53,000

30 Notes to the financial statements for the year ended 31 December 2021 2020


2021 ($)

2020 ($)

36,000

30,480

662,291

708,138

-

(1,364)

(f) Other specific expenses Operating lease expenses - these are exempt short-term and low value rentals Employee benefits: - defined contribution superannuation plans Bad & doubtful debts

*The Club received COVID support payments from the NSW government under the JobSaver program and the general business support grant. In 2020 the COVID support payments were from the Commonwealth Government under the JobKeeper and Cash Flow Boost programs. These support payments are not expected to continue in 2022.

Notes to the financial statements for the year ended 31 December 2020 2021

31


3. INCOME TAX EXPENSE (BENEFIT) The Club is a non-profit entity for income tax purposes and is able to apply the "principle of mutuality" whereby income derived from club members is exempt from income tax.

2021 ($)

2020 ($)

60,855

-

Prima facie tax expense (benefit) on Net Profit after adjusting for mutual net income and other permanent and temporary tax differences, at the corporate tax rate of 30% is:

Current tax expense (benefit) Deferred tax asset - decrease (increase)

4. CASH AND CASH EQUIVALENTS Cash at bank and in hand

5. TRADE AND OTHER RECEIVABLES Trade debtors Sundry debtors

6. INVENTORIES Bar Inventories - at cost

-

-

60,855

-

60,855

-

5,111,901

5,624,080

5,111,901

5,624,080

21,305

59,196

30,280

15,943

51,585

75,139

334,490

244,821

334,490

244,821

15,000

15,000

15,000

15,000

343,323

321,262

343,323

321,262

7. FINANCIAL ASSETS Non-Current Assets Investments in listed securities, at cost

8. OTHER CURRENT ASSETS Prepayments

32

Notes to the financial statements for the year ended 31 December 2021 2020


2021 ($)

2020 ($)

At independent valuation - 2018

68,000,000

68,000,000

Additions & renovations - at cost

415,808

415,808

Capital works in progress - at cost

393,787

142,162

68,809,595

68,557,970

9. PROPERTY, PLANT & EQUIPMENT Freehold land & buildings, at fair value Clubhouse & carpark:

Less: Accumulated depreciation

(3,534,853)

(2,516,423)

65,274,742

66,041,547

8,750,000

8,750,000

Other properties: At independent valuation - 2018 Additions & renovations Less: Accumulated depreciation

2,179,466

-

10,929,466

8,750,000

-

-

10,929,466

8,750,000

Total Land & Buildings

76,204,208

74,791,547

Plant and equipment, furniture and fittings: At cost Less: Accumulated depreciation

23,525,648

22,661,790

(15,773,266)

(14,498,378)

7,752,382

8,163,412

Gaming machines: At cost Less: Accumulated depreciation Total Property, Plant & Equipment

14,114,850

13,684,002

(11,206,347)

(11,079,389)

2,908,503

2,604,613

86,865,093

85,559,572

The freehold land and buildings were independently valued by Global Valuation Services Pty Ltd on 30 June 2018 and the directors made the decision to use that valuation as the fair value of the Club's land and buildings as at 31 December 2018. The valuation model is based on fair value of the land plus depreciated replacement cost of the buildings. The critical assumptions adopted in determining the valuation were the location, zoning and use of the land and buildings, and comparative recent property sales in the area. The directors have reviewed the key assumptions made by the independent valuers in 2018. They concluded that these assumptions remain materially unchanged and are satisfied that the carrying values do not exceed the recoverable amount of the land and buildings. The directors do not believe that there has been a material movement in the fair values since valuation date. Accordingly, no revaluation or impairment losses were recognised this financial year.

Notes to the financial statements for the year ended 31 December 2020 2021

33


2021 ($)

2020 ($)

74,791,547

75,704,585

RECONCILIATIONS OF CARRYING VALUES Land & Buildings Carrying value at start of year Additions Depreciation Carrying value at year end

2,431,092

104,253

(1,018,431)

(1,017,291)

76,204,208

74,791,547

Plant & Equipment Carrying value at start of year

8,163,412

6,051,312

Additions

1,127,296

3,408,567

Disposals

(1,186)

-

(1,537,140)

(1,296,467)

7,752,382

8,163,412

Carrying value at start of year

2,604,613

3,808,820

Additions

1,838,993

469,939

Disposals

(24,932)

-

(1,510,171)

(1,674,146)

Depreciation Carrying value at year end Gaming Machines

Depreciation Carrying value at year end Total Carrying Value

2,908,503

2,604,613

86,865,093

85,559,572

32,864,246

31,703,210

Carrying value under the cost model of assets at fair value: - Freehold land & buildings

34 Notes to the financial statements for the year ended 31 December 2021 2020


2021 ($)

2020 ($)

The carrying amount of assets pledged as security are: - Freehold land & buildings

56,965,956

- Gaming machines & equipment

57,643,137

1,506,566

1,167,521

58,472,522

58,810,658

Core Properties Pursuant to Section 41J of the Registered Clubs Act 1976, the following properties that are owned by the Club are core properties: 4 High Street, Hornsby The following properties owned by the Club are non-core properties: 2-5 William Street, Hornsby 2 Ashley Lane, Hornsby 7-17 Ashley Street, Hornsby 19 Ashley Street, Hornsby 2-4 Webb Avenue, Hornsby 289 Peats Ferry Road, Hornsby

2021 ($)

2020 ($)

10. INTANGIBLE ASSETS Gaming machine entitlements, at cost Less: Provision for Impairment

1,956,224

1,956,224

-

-

1,956,224

1,956,224

Carrying value at start of year

1,956,224

1,956,224

Carrying value at year end

1,956,224

1,956,224

Opening balance

200,412

200,412

Net movement

(60,855)

-

Closing balance

139,557

200,412

2,625,828

2,712,917

2,625,828

2,712,917

11. DEFERRED TAX ASSETS

12. TRADE AND OTHER PAYABLES Trade creditors & accruals

Notes to the financial statements for the year ended 31 December 2020 2021

35


2021 ($)

2020 ($)

­

13. FINANCIAL LIABILITIES Current - 378,125

1,500,000

Leasing & HP liability

607,585

663,204

Deferred charges

(42,922)

(29,957)

942,788

2,133,247

Bank loan

Non-Current - 3,671,875

1,923,684

Hire purchase liability

699,497

247,983

Deferred HP charges

(29,456)

(1,756)

4,341,916

2,169,911

5,284,704

4,303,158

Bank loan

Total Borrowings

The bank overdraft, bank loan facility, commercial bank bills and bank guarantees are all secured by a first registered mortgage over real property located at 4 High Street Hornsby and a first registered equitable mortgage over the whole of the company's assets and undertakings. A Market Rate Loan facility commenced on 20 September 2021 with a term of 5 years. The facility limit is $8,050,000. The facility requires quarterly principal repayments of $378,125 commencing 23 December 2022. The Club has an equipment finance facility of $2,500,000 which expires on 16 March 2022 and is generally renewed annually. Equipment purchased using this facility are subject to a specific security agreement, whereby the Club has granted a security interest to the specific equipment purchased. The facility is not secured by mortgage. The weight average interest rates on the bank bill and hire purchase facilities are: Loan facility 1.96% Asset purchase finance facilities

4.81%

The proportion of borrowings to net tangible assets at year end was 6.7% which is less than the 60% limit prescribed in the Club's constitution.

36

Notes to the financial statements for the year ended 31 December 2021 2020


2021 ($)

2020 ($)

Accured annual leave

654,424

652,139

Long service leave

676,689

717,834

1,331,113

1,369,973

1,137,984

1,208,123

14. EMPLOYEE BENEFITS LIABILITIES

Represented by: Current Liability Non-current Liability

193,129

161,850

1,331,113

1,369,973

Superannuation - in accordance with the relevant law, the Club contributes 10.00% (9.50% prior to 30/6/2021) of each employee's base salary to a superannuation fund.

15. TAX LIABILITIES Non-Current Provision for deferred tax liabilities

6,394,141

6,394,141

Notes to the financial statements for the year ended 31 December 2020 2021

37


2021 ($)

2020 ($)

139,776

127,414

154,681

140,227

21,333

36,000

176,014

176,227

100,000

100,000

89,888

97,110

-

-

3,179,214

-

-

-

Payable

-

-

- within 1 year

-

-

- greater than 1 year

-

-

16. OTHER LIABILITIES Current Income received in advance Non-Current Income received in advance Supplier rebate agreement

17. CONTINGENT LIABILITIES (a) Bank guarantees (b) Gaming machine jackpots (c) Legal liabilities There are no other material legal matters pending against the Club.

18. CAPITAL AND LEASING COMMITMENTS (a) Capital Expenditure Commitments Capital expenditure commitments contracted for: - Building Costs

38

Notes to the financial statements for the year ended 31 December 2021 2020


Notes

2021 ($)

2020 ($)

(47,083)

640,962

4,080,361

3,987,905

Receivables

23,554

146,569

Inventories

(89,669)

154,074

Other assets

(22,061)

14,264

Trade creditors & accruals

(87,089)

362,492

Deferred hire purchase charges

(40,665)

58,931

Employee leave provisions

(38,860)

(282,862)

12,149

(94,555)

3,790,637

4,987,780

5,111,901

5,624,080

5,111,901

5,624,080

Asset finance facilities

2,500,000

2,500,000

Bank lending facilities

8,050,000

3,423,684

100,000

100,000

Bank overdraft

50,000

50,000

Corporate credit cards

70,000

70,000

10,770,000

6,143,684

19. CASH FLOW INFORMATION (a) Reconciliation of Net Profit to Net Operating Cash Flows Net profit after tax Non-cash (income) and expenses Depreciation & amortisation (Increases)/decreases in assets -

Increases/(decreases) in liabilities -

Other liabilities Net Operating Cash Flows (b) Cash at Year End Cash assets

4

(c) Financing Facilities The Club has the following financing facilities:

Bank guarantees

Amounts used

5,284,704

4,303,158

Unused facilities

5,485,296

1,840,526

Notes to the financial statements for the year ended 31 December 2020 2021

39


2021 ($)

2020 ($)

20. KEY MANAGEMENT PERSONNEL Key management personnel are those persons having authority and responsibility for planning, directing and controlling activities of the Club, including the directors. (a) Directors – the following persons were non-executive directors of the Club during the financial year: Robert Kennerley Terence Clarke Michael Brodie John Deane Norm Bakker Denis Dempsey Wai Han Ho (Sharon) John Warren (b) Other key management personnel: Mario Machado (Chief Executive Officer) Sue Backhouse (Gaming Manager) Stuart Gabriel (Human Resources Manager) Andy Fung (Financial Controller) James Nicholas (Executive Chef) (c) Total remuneration to key management personnel

1,016,695

40 Notes to the financial statements for the year ended 31 December 2020

952,943


21. RELATED PARTY TRANSACTIONS From time to time, related parties including key management personnel, have purchased goods and services from the Club. These purchases were made on an arms-length basis, on the same commercial terms as those entered into by other Club employees or customers. From time to time, certain directors have provided additional services to the Club. These services and the compensation paid for these services were on commercial arms-length terms, and are fully disclosed in accordance with the applicable regulations. Details of these services arrangements are available on request from the CEO. Apart from the detail disclosed in this note, no related party has entered into a material contract with the club since the end of the previous financial year, and no such material contracts existed at year end. There were no amounts receivable from or payable to related parties at the current or previous reporting date. The directors receive an honorarium each month and have received other benefits as approved by the members at last year's annual general meeting. The directors' honorariums are included in the key management personnel remuneration in Note 20. 22. EVENTS SUBSEQUENT TO BALANCE DATE There have been no significant events occurring after the reporting date which may affect either the Club's operations or results of those operations, or the Club's state of affairs, except: - the on-going COVID-19 public health restrictions mean that the Club will continue to suffer from reduced trading revenue and some additional costs. 23. MEMBERS GUARANTEE The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $2.00 towards meeting any outstanding obligations of the entity. At 31 December 2021 the number of members was 31,252 (2020: 32,275), and the total members' liability was $62,504

Notes to the financial statements for the year ended 31 December 2020 2021

41


DIRECTORS DECLARATION

The directors have determined that the company is a reporting entity that does not have public accountability as defined in AASB 1053: Application of Tiers of Australian Accounting Standards and that these general purpose financial statements should be prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements. In accordance with a resolution of the directors of Hornsby RSL Club Limited, the directors of the company declare that: 1.

The accompanying financial statements and notes are in accordance with the Corporations Act 2001 and:

(a)

comply with Australian Accounting Standards – Reduced Disclosure Requirements; and

(b)

give a true and fair view of the Company’s financial position as at 31 December 2021 and of its performance and cash flows for the year ended on that date.

2.

In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Robert Kennerley

Director

Terence Clarke

Director

Dated: 23 February 2022

42 Hornsby RSL Club Annual Report 2021


Independent Auditor's Report

To the Members of Hornsby RSL Club Limited OPINION We have audited the financial report of Hornsby

Australia. We have also fulfilled our other ethical

RSL Club Limited (the company), which comprises

responsibilities in accordance with the Code.

the statement of financial position as at 31 December 2021, the statement of profit or loss and

We confirm that the independence declaration

other comprehensive income, statement of changes

required by the Corporations Act 2001, which has

in equity and statement of cash flows for the year

been given to the directors of the company, would

then ended, and notes to the financial statements,

be in the same terms if given to the directors as at

including a summary of significant accounting

the time of this auditor's report.

policies, and the directors' declaration. We believe that the audit evidence we have In our opinion, the accompanying financial report

obtained is sufficient and appropriate to provide a

of Hornsby RSL Club Limited is in accordance with

basis for our opinion.

the Corporations Act 2001, including: INFORMATION OTHER THAN THE FINANCIAL (a)

giving a true and fair view of the

REPORT AND AUDITOR’S REPORT THEREON

company's financial position as at 31 December 2021 and of its performance for the year then ended; and

The directors are responsible for the other information. The other information comprises the

(b)

complying with Australian Accounting

information included in the company's annual

Standards – Reduced Disclosure Requirements and

report for the year ended 31 December 2021 but does

the Corporations Regulations 2001.

not include the financial report and our auditor's report thereon. Our opinion on the financial

BASIS FOR OPINION

report does not cover the other information and accordingly we do not express any form of

We conducted our audit in accordance with

assurance conclusion thereon. In connection with

Australian Auditing Standards. Our responsibilities

our audit of the financial report, our responsibility

under those standards are further described in

is to read the other information and, in doing

the Auditor's Responsibilities for the Audit of

so, consider whether the other information is

the Financial Report section of our report. We

materially inconsistent with the financial report, or

are independent of the company in accordance

our knowledge obtained in the audit or otherwise

with the auditor independence requirements

appears to be materially misstated. If, based on the

of the Corporations Act 2001 and the ethical

work we have performed, we conclude that there is

requirements of the Accounting Professional and

a material misstatement of this other information,

Ethical Standards Board's APES 110: Code of Ethics

we are required to report that fact. We have nothing

for Professional Accountants (the Code) that are

to report in this regard.

relevant to our audit of the financial report in

Hornsby RSL Club Annual Report 2021

43


Independent Auditor's Report

RESPONSIBILITIES OF THE DIRECTORS FOR THE

As part of an audit in accordance with Australian

FINANCIAL REPORT

Auditing

Standards,

we

exercise

professional

judgement and maintain professional scepticism The directors of the company are responsible for

throughout the audit. We also:

the preparation of the financial report that gives a true and fair view in accordance with Australian

Accounting Standards and the Corporations Act

misstatement of the financial report, whether

Identify and assess the risks of material

2001 and for such internal control as the directors

due to fraud or error, design and perform audit

determine is necessary to enable the preparation

procedures responsive to those risks, and obtain

of the financial report that gives a true and fair view

audit evidence that is sufficient and appropriate

and is free from material misstatement, whether

to provide a basis for our opinion. The risk of not

due to fraud or error.

detecting a material misstatement resulting from fraud is higher than for one resulting from error,

In preparing the financial report, the directors

as fraud may involve collusion, forgery, intentional

are

omissions, misrepresentations, or the override of

responsible

for

assessing

the

company's

ability to continue as a going concern, disclosing,

internal control.

as applicable, matters related to going concern and using the going concern basis of accounting

unless the directors either intend to liquidate the

control relevant to the audit in order to design

Obtain an understanding of internal

company or to cease operations, or have no realistic

audit procedures that are appropriate in the

alternative but to do so.

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT

internal control.

OF THE FINANCIAL REPORT •

Evaluate

the

appropriateness

of

Our objectives are to obtain reasonable assurance

accounting policies used and the reasonableness of

about whether the financial report as a whole is

accounting estimates and related disclosures made

free from material misstatement, whether due to

by the directors.

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

the directors' use of the going concern basis of

an audit conducted in accordance with Australian

accounting and, based on the audit evidence

Auditing Standards will always detect a material

obtained, whether a material uncertainty exists

misstatement when it exists. Misstatements can

related to events or conditions that may cast

arise from fraud or error and are considered

significant doubt on the company's ability to

material if, individually or in the aggregate, they

continue as a going concern. If we conclude that

could reasonably be expected to influence the

a material uncertainty exists, we are required

economic decisions of users taken on the basis of

to draw attention in our auditor's report to the

the financial report.

related disclosures in the financial report or, if such

44 Hornsby RSL Club Annual Report 2021

Conclude on the appropriateness of


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. •

Obtain

sufficient

appropriate

audit

evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion. 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.

Signed on: 2nd March 2022 BRIGDEN & PARTNERS PTY LTD, CHARTERED ACCOUNTANTS

David Smith – Director Level 3, 20 George Street, Hornsby NSW 2077

Hornsby RSL Club Annual Report 2021

45


ClubGRANTS 2020 - 2021

Hornsby RSL Club is about community. We appreciate the opportunity to serve people who live locally and those who are proud members of the Club. For this reason we support a diverse group of local community organisations through the ClubGRANTS program. What is ClubGRANTS? ClubGRANTS is a shared State Government and club industry program which provides support for local community services and development needs. Each year Clubs in NSW provide grants totaling more than $100 million to local groups. As a proud community supporter Hornsby RSL donated ClubGRANTS totalling $384,843.51 to many community groups and organisations. Category 1 - $128,281.17 Category 2 - $188,145.72 Category 3 - $68,416.62 Below is a list of organisations who received Category 1 Grants: HK Parkinson Choir Streetwork Hornsby & District TPI &Welfare Club Northside CALD Carers Network Cancer Patients Foundation Hornsby Autism Carer's Peer Support Gp Macular Disease Foundation Epilepsy Action Australia SHINE for Kids Hornsby RSL Sub-Branch

Vision Australia Shepherd Centre for Deaf Children Women's Justice Network Northcott Society St Edmunds

46 Hornsby RSL Club Annual Report 2021

Rainbow Hornsby Bridge for Asylums Seekers Inc Learning Links Dance for Parkinsons Hornsby Woodworking Mens Shed KYDS HK Parkinson Assoc Hornsby Relay for Life Studio ARTES St Lucy's School Hawkesbury River Child Centre Indian Seniors Group Hornsby The Reconnect Program Tour de Cure Hornsby-Kuring-gai Women's Shelter


Hornsby RSL Club Annual Report 2021

47