Key Personnel
Notice of Election
VOTING FOR BOARD OF DIRECTORS
Nominations for the position of:
Director (2 positions):
Norm Bakker
Rob Kennerley
Nominations for position on the Board of Directors open Tuesday 2 April 2024 and shall close 6.00pm
Tuesday 23 April 2024.
Nominations must be in the hands of the CEO by 6.00pm Tuesday 23 April 2024.
Under the Club’s Constitution the following requirements shall be observed in connection with the election of directors.
(a) Every candidate for election as a Director must qualify under Rule 25 of the Club’s Constitution (available on the Club’s website and from the membership office).
(b) Nominations for election must be in writing on the Board Election Nomination Form signed by one ordinary member and or life member as nominator and signed by another ordinary member or life member as seconder and signed by the nominee as indicating his or her consent to the nominations.
Board Election Nomination Forms and Statutory Declaration Forms can be obtained from CEO’s office during office hours: from 9.30am on Tuesday 2 April 2024. Arrangements can also be made to obtain these forms outside office hours. (Contact Jaynie Novotny on 9485 3201 or email jnovotny@ hornsbyrsl.com.au).
Candidates must complete the Board Election Nomination Form and also complete the Board Election Nominee Statutory Declaration, and once completed, both forms must be lodged with the
CEO’s Office, at which time the candidate must furnish proof of their membership of the Club.
Board Election Nomination Form and Board Election Nominee Statutory Declaration Form, must be lodged with the CEO’s Office no later than by 6.00pm, Tuesday 23 April 2024. Forms will not be accepted after this time.
The CEO will arrange a photographer to take suitable photographs of candidates for the Board of Directors. Candidates may arrange their own suitable photograph for publication and submit same with brief resume to CEO’s office by 6.00pm Tuesday 23 April 2024. All candidates photographs must be the same size. Personal details typed on same size form as photograph with only relevant details pertinent to their interests in the Club.
All resumes to be typed by CEO’s EA in same format prior to 6.00pm Tuesday 23 April 2024. Relevant details will be in same order for each candidate:
i.e.
Name
Date of Joining Club
Date of Birth
Occupation
In case of a sitting Director, history of activities whilst a Director of the Club will be included in resume. Candidate’s resumes limited to 200 words.
Nominations including the name of each candidate and his/her proposer and seconder, will be posted on the Club’s notice board by the CEO.
Any person who nominates for election as a Club Director will be required to attend a pre-election
mandatory course of instruction for candidates to the Board.
Mandatory course of instruction for candidates to the Board will take place at Monday 22 April 2024 at 6.00pm and Tuesday 23 April 2024 at 6.00pm in the Boardroom. In accordance with the Club’s Constitution in order to be eligible for the election candidates must attend this course on one of these dates.
The Director Identification Number (DIN) regime has been passed by parliament and is now law. 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 Tuesday 23 April 2024 at 6.00pm.
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.
2. By phoning the ABRS on 13 62 50.
3. Through lodgement of a paper application.
VOTING TIMES
Monday 29th April 2024
12.00pm to 8.00pm
Tuesday 30th April 2024 12.00pm to 8.00pm
Wednesday 1st May 2024 12.00pm to 8.00pm
Thursday 2nd May 2024 12.00pm to 8.00pm
Friday 3rd May 2024 12.00pm to 8.00pm
Saturday 4th May 2024 4.00pm to 8.00pm
At the close of the ballot at 8.00pm on Saturday 4 May 2024, the Chief Executive Officer shall hand all locked ballot boxes, voting tally sheets, and membership register to the Returning Officer.
The Returning Officer shall then be responsible for:
i. Counting and collating of all votes in an area as allocated by the Chief Executive Officer, such area to be “out of bounds” to all Directors, Members and Staff, during the period of the count.
ii. Placing in a sealed envelope, the results of his/her count, this envelope is to remain in his/ her possession, to be opened by the Returning Officer, when requested to do so by the Chairman at the Annual General Meeting.
All Members in attendance are to produce their current financial membership card and sign the Annual General Meeting attendance book.
All Members in attendance are to receive two (2) drink tickets to the value of a schooner of beer and one (1) Courtyard Voucher to the value of $25.00 which are only valid for the day.
Note: In accordance with the Club’s Constitution eligible Members are Members who have been financial Members for at least 12 months before the date of the AGM.
Showroom Doors close at 11.00am.
- WANTED VOLUNTEER POLLING CLERKS
-
Voting for the 2024 Board of Directors will be held at the Club from:
Monday 29th April until Saturday 4th May 2024.
Voting begins at 12 noon Monday to Friday & 4.00pm on Saturday.
If you are able to assist as a Clerk, please contact Jaynie on 9485 3201 or jnovotny@hornsbyrsl.com.au
42nd Annual General Meeting
Notice is given that the next Annual General Meeting of members will be held on Sunday 5 May 2024 at 11.00am in the Club’s Showroom
4 High St, Hornsby 2077
Members attending will be required to present their current membership card on entering the meeting.
AGENDA
1. Announcement of quorum.
2. Apologies.
3. Confirmation of Minutes of Annual General Meeting of members of Hornsby RSL Club Limited held 30 April 2023.
4. To receive and consider the Audited Financial Report of Hornsby RSL Club Limited for year ended 31 December 2023.
5. To receive and consider reports of Board of Directors and Auditor.
6. Declaration of Ballot for the election of Directors.
7. To consider and, if thought fit, to pass the following three (3) ordinary resolutions, namely:
ORDINARY RESOLUTION NUMBER 1
(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 for
any broken period of less than a calendar month at the start or end of their term of office commencing on the date of this resolution and ending on the date of the next Annual General Meeting of the Club; and
(b) That each Director be paid an honorarium in respect of his or her services as a member of the Board of Directors at the monthly rate of $1,083.33 (plus Superannuation Guarantee Levy where applicable) payable in arrears and prorated on a daily basis for any broken period of less than a calendar month at the start or end of their term of office commencing on the date of this resolution and ending on the date of the next Annual General Meeting of the Club.
Explanatory Note –Ordinary Resolution 1: Honoraria
Under the Registered Clubs Act 1976 (NSW) (Registered Clubs Act), honoraria payable to Directors and the President must be approved by ordinary resolution. Members are advised that where required by law, the Club will make superannuation contributions in addition to the honoraria at a level which is sufficient to ensure that the Club is compliant with superannuation guarantee legislation.
The amount of the proposed honorarium for the President is unchanged from last year’s honorarium. The amount of the proposed honoraria for Directors is unchanged from last year’s honorarium.
ORDINARY RESOLUTION NUMBER 2
That until the next Annual General Meeting, members approve members of the Board receiving such of the following benefits and advantages, (being benefits and advantages not offered equally to every Full Member of the Club) as the
Board shall from time to time approve:
(a) The provision to each member of the Board, as required from time to time and at the expense of the Club, a Directors Club Uniform, to be worn when attending to or carrying out his or her duties as a member of the Board whether at the premises of the Club or otherwise.
(b) The provision to members of the Board of one car parking space each in that part of the Club’s carpark as the Board shall from time to time resolve to set aside for use by members of the Board.
(c) Reasonable expenditure for Directors to undertake training and education including but not limited to industry related meetings, organised study tours, seminars, trade displays etc as may be determined by the Board provided all expenditure is supported by documentary evidence.
(d) The provision to members of the Board of a free meal and refreshment, at a reasonable cost, on the day of attendance at Board Meetings, Finance Meetings and other Committee Meetings.
(e) The provision of an electronic device (for example a laptop computer, iPad, tablet or other similar device) and internet access being made available to Directors in respect of their duties as directors of the Club.
Explanatory Note –Ordinary Resolution 2: Director Benefits
Under the Registered Clubs Act, benefits may be given to Directors, which are not also available to every Full Member of the Club, if those benefits are approved by ordinary resolution of the members.
The benefits being authorised under Ordinary Resolution 2 are generally consistent with those benefits authorised at the Club’s AGMs in recent years.
ORDINARY RESOLUTION NUMBER 3
That until the next Annual General Meeting, the members approve that eligible members may receive such of the following benefits (which are not offered equally to every Full Member of the Club) as the Board shall from time to time approve:
(a) The expenditure by the Club of reasonable sums in payment of the costs of holding functions on the club’s premises to celebrate certain occasions, including but not limited to the Life Members’ Dinner.
(b) The provision to Life Members of one monthly free meal and refreshment, at a reasonable cost.
(c) The provision to Life Members of car parking spaces in that part of the Club’s carpark as the Board shall from time to time resolve to set aside for use by Life Members.
(d) The provision of membership of the Club to certain classes of person, including but not limited to Life Members of the Club and members of the Hornsby Branch of the Returned and Services League of Australia, for a reduced fee.
Explanatory Note –Ordinary Resolution 3: Member benefits
Under the Registered Clubs Act, benefits given to certain members (which are not available to every Full Member of the Club) may be given if those benefits are approved by ordinary resolution of the members.
The benefits being authorised under Ordinary Resolution 3 are being conferred on Life Members (who have been elected to this category for their outstanding service to the Club) and certain other members and are generally consistent with such benefits authorised at the Club’s AGMs in recent years.
8. To consider and, if thought fit, to pass the following Ordinary Resolutions for Life Membership.
1. Kerry Vivian
That Life Membership of Hornsby RSL Club Limited be conferred on Kerry Vivian Member 4451.
Moved John Deane Membership Number 309
Seconded Terry Clarke Membership Number 3291
2. Wing Kwai Chan
That Life Membership of Hornsby RSL Club Limited be conferred on Wing Kwai Chan Member 10655.
Moved Geoff Barrett Membership Number 42792
Seconded Wai (Sharon) Ho Membership Number 4628
9. To notify members of any expression of interest in an amalgamation, or any unsolicited merger offer, received by the Club from any other registered club in the previous 12 months before the Annual General Meeting (if any has been received).
None have been received.
10. General Business
The Board advises members that the Club’s Financial Year Period is changing to 1 July to 30 June each year (previously 1 January to 31 December each year). This will align with general taxation year end and allow for budgets and strategic planning meetings taking place around May-June, rather than the busy trading period for the Club in November-December.
Consequently, there will be and additional Annual
General Meeting, and Club Director elections in 2024, date to be confirmed in late October, early November.
General Notes for Members
1. Each Ordinary Resolution (including the Ordinary Resolution for Life Membership)will be passed if at least a simple majority of those members who are present and cast their votes on the Ordinary Resolution (being entitled to do so), vote in favour of the Ordinary Resolution. In accordance with Rules 10.5, 10.6A and 10.12 of the Constitution, the following members who attend the meeting are entitled to vote on the Ordinary Resolutions:
(a) all financial Ordinary members who were Ordinary members prior to the Club’s 2017 Annual General Meeting;
(b) all financial Ordinary members who became Ordinary members of the Club after the Club’s 2017 Annual General Meeting and have held at least 1 years’ continuous membership from the date of their admission to the Club’s membership; and
(c) all Life members.
2. Members will be given a reasonable opportunity to speak and ask questions at the meeting.
3. Proxy voting is not permitted and employees are prohibited from voting under the Registered Clubs Act.
Dated: 4 March 2024
By direction of the Board
MarioMachado
Chief Executive Officer
Annual Financial Report
DIRECTORS REPORT
Your Directors have pleasure in submitting to members their annual report on the Hornsby RSL Club Limited (the Club) covering year ended 31 December 2023.
OPERATIONS
The principal activity of the Club is the operation of licensed premises, including the provision of sporting, social and entertainment activities for members of the Club. The income from those activities is directed towards the improvement and maintenance of the Club’s facilities and the promotion of the social welfare of members including affiliated sub-clubs.
There were no significant changes to this activity during the financial year.
The short-term objectives of the Club are to make continuous improvements towards excellence in serving our members and community; reduce debt and implement revenue diversification strategies to ensure long-term financial sustainability.
The long-term objectives of the Club are to maintain the Anzac tradition and support the RSL movement, support our affiliated sub-clubs, charities and community organisations, and achieve excellence in serving our community by providing exceptional customer service and premium recreational and
leisure facilities in order to remain relevant to our members and the local community.
The strategy for achieving these objectives is to remain financially viable by adopting prudent financial management, whilst incorporating best practice corporate governance standards.
Measurement of performance: The Club measures its overall performance from the implementation of its mission statement and strategic plan through the performance of the Club against financial budgets, operating plans and by benchmarking identified key performance indicators (KPIs) against industry best practice.
The Board of Directors meet monthly to review and evaluate the Clubs operating and financial performance and the Board meets a minimum of once per year to review and monitor the Club’s strategic plan.
Annual Financial Report
DIRECTORS' PARTICULARS
Robert Kennerley
President, Director 9 Years
Committees - Building, Remuneration and Audit, Investigating/Disciplinary
Member of the Australian Institute of Company Directors
Fitness Institute Australia Certificate III (Fitness Instructor)
Fitness Institute Australia Certificate IV (Personal Trainer)
Occupation: Aircraft Maintenance
Engineer (Qantas Airways) - Current
Terence Clarke
Vice President, Director 7 Years Sports Convener
Committees - Building, Remuneration and Audit, Investigating/Disciplinary
Member of the Australian Institute of Company Directors
Graduate - Institute of Transport Studies with certificate in Coach Management
Small business owner since 1992
Committee member and life member of HRSL Football Club
Patron of HRSL Hockey Club
Michael Brodie
Director 30 Years, Life Member, Retired 4 March 2024
Committees - Remuneration and Audit, Investigating/Disciplinary
Retired. Royal Australian Airforce 1969-1974, Vietnam 1971-1972
Completed numerous ClubNSW courses
Patron and life member of the HRSL Social Golf Club
Norm Bakker
Director 19 Years
Committees - Remuneration and Audit, Investigating/Disciplinary
Over 50 years of experience in the entertainment industry, including director of entertainment agencies and production companies (1968-1983), and HRSL Entertainment Manager (1984-2003)
The latter role included booking all shows, managing the Club’s night spot and all promotional activities
Denis Dempsey
Director 11 Years
Committees - Building, Remuneration and Audit, Investigating/Disciplinary Small business owner
Captain and Life Member of HRSL Social Golf Club
President and Life Member of HRSL Indoor Bowls Club
Life Member of HRSL Football Club
Life Member of Hornsby RSL Club
Wai Han Ho (Sharon)
Director 4 Years
Committees - Remuneration and Audit, Investigating/Disciplinary, Cyber Security, Sports Secretary.
PhD in Information Technology
Member of Australian Institute of Company Directors
Management and technical lead roles in government and community services sectors
Treasurer of HRSL Table Tennis Club since 2001
John Warren
Director 3 years
Committees - Building, Remuneration and Audit, Investigating/Disciplinary, Sports Secretary
Member of Australian Institute of Company Directors
Managing Director – Business Fitness Group Pty Ltd
Director – Innovative Tradies Club Pty Ltd, and Aware4 Pty Ltd
President of Hornsby Chamber of Commerce
of HRSL Social Golf Club
Past President & Life Member of HRSL Football
Kerrie Daynes
Director 1 year
Committees - Remuneration and Audit, Investigating/Disciplinary, Cyber Security. Graduate Certificate in Management (Professional Practice)
Graduate member of the Australian Institute of Company Directors
Director of several financial institutions 2004 to present, and senior roles at Department of Human Services
Secretary of HRSL Table Tennis Club since 2018
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 in the Notes to the Financial Statements.
AUDITORS INDEPENDENCE DECLARATION
The lead auditor’s independence declaration for the year ended 31 December 2023 has been received and is included with the financial report.
Made and signed in accordance with a resolution of the Board of Directors on 4 March 2024.
Robert Kennerley DirectorAUDITOR’S INDEPENDENCE DECLARATION
TThis 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 2023 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 – DIRECTORBRIGDEN & PARTNERS PTY LTD
CHARTERED ACCOUNTANTS
HORNSBY – 4 March 2024
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Financial assets
Property, plant & equipment
Right of use assets
Intangible assets
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS CURRENT LIABILITIES
Trade and other payables
Financial liabilities
Lease liabilities
Employee benefit liabilities
Other current liabilities
TOTAL
Financial liabilities
Lease liabilities
Employee benefit liabilities
Deferred tax liabilities
Other non-current liabilities
6,347,402 140,229 354,401 397,022 7,239,054 15,000 106,898,408 178,959 1,956,224 109,048,591 116,287,645 2,451,731 1,535,249 1,033,021 1,376,817 129,717 6,526,535 5,265,608 1,543,686 152,079 8,186,570 196,844 15,344,787 21,871,322 94,416,323
The accompanying notes form part of these financial statements.
Revenue:
Revenue from contract with customers
Other income
Total Revenue and Other Income
Expenses: Cost of goods sold
Computer & software expenses
Employee benefit expenses
Marketing & entertainment
Poker machine gaming tax
Poker machine monitoring fees
Property & maintenance
Security expenses
Welfare, ClubGrants & Sub-Clubs
Other expenses
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
ACCUMULATED FUNDS
Balance as at 31 December 2021
Net profit (loss) attributable to members of the entity
Transfer from members benefit fund:
- for payment of death benefits
- to reflect non-renewing members
Revaluation surplus (loss)
Balance as at 31 December 2022
Net profit (loss) attributable to members of the entity
Transfer from members benefit fund:
- for payment of death benefits
- to reflect non-renewing members
Balance as at 31 December 2023
(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 2022.
(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 16 members eligible for a $500 benefit and 109 eligible for a $300 benefit.
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023
Cash Flows From Operations:
Receipts from members & guests
Payments to suppliers & employees
Rental Income
Interest received
Finance costs
Net Operating Cash Flows
Cash Flows From Investments:
Asset purchasesFurniture, plant & equipment
Land & building additions/ renovations
Net Investment Cash Flows
Cash Flows From Financing:
Borrowings recieved
Repayment of borrowings
Hire purchase repayments
Lease payments
2023 ($)
(344,135)
(227,790) (2,815,398)(1,997,471) (47,123) (1,588,141) (3,632,735) (1,214,171)
(5,482,223) (972,300) (6,454,523)
(256,250) (243,917) (615,876)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
The financial report is for Hornsby RSL Club Ltd (“the Company/Club”) as an individual entity for the year ended 31 December 2023 and was authorised for issue in accordance with a resolution of the Directors on 4 March 2024.
The Club is a company limited by guarantee, incorporated and domiciled in Australia. The Club is a not-for-profit entity for financial reporting purposes under the Australian Accounting Standards.
The Club’s registered office and business address is 4 High Street Hornsby NSW 2077.
1. SUMMARY OF ACCOUNTING POLICIES
Basis of Preparation
The financial statements are a general-purpose financial report and have been prepared in accordance with the Corporation Act 2001 and Australian Accounting Standards – Simplified Disclosures made by the Australian Accounting Standards Board (“AASB”).
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 financial statements have been rounded to the nearest dollar.
The financial report has been prepared on a going concern basis, which contemplates continuity of normal business activities, and the realisation of assets and settlement of liabilities in the ordinary course of business. The Directors considered the profitability, liquidity and solvency of the Club and have concluded that the use of the going concern assumption in the preparation of the financial report is appropriate.
Both the functional and presentation currency of the Club is Australian dollars ($).
Accounting Policies
(a) 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 dollars spent. The redemption of points for Club products and services is treated as revenue at the time of sale.
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 and payables in the statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.
(c) Cash and Cash Equivalents - Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.
(d) Trade and Other Receivables - Trade and other receivables represent the principal amounts due at balance date less where applicable a provision for doubtful debts. These accounts are generally non-interest bearing on 30-day terms and are treated as current assets. A provision for doubtful debt is recognised when there is objective evidence that an account is impaired.
Due to the short-term nature of these receivables, the carrying value is assumed to equal the fair value.
(e) Inventories - Inventories are measured at the lower of cost or net realisable value.
Due to the relatively short shelf life and quick turnover (less than 30 days) the Club does not recognise catering stock as inventory but rather expenses the cost at the time of purchase.
(f) Property, Plant and Equipment, and Depreciation - Each class of property, plant and equipment is carried at cost or fair values as indicated, less, where applicable, accumulated depreciation and impairment losses.
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 periods when the freehold land and buildings are not subject to an independent valuation, the directors assess whether the carrying values for the land and buildings are materially different to the fair value.
Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation reserve in members’ equity.
Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation gain/loss. All other decreases are charged to the statement of comprehensive income.
Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.
Plant and equipment are measured on the cost basis less accumulated depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not more than the recoverable amount from these assets. The recoverable amount is assessed based on the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.
Depreciation The depreciable amount of all fixed assets including buildings and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the entity commencing from the time the asset is held ready for use. The depreciable amount of buildings includes revaluations where applicable.
Depreciation rates:
Buildings 2.5% - 5%
Plant & Equipment 7.5% - 25%
Poker machines 25%
(g) Intangible Assets - Gaming machine entitlements are initially recognised at their acquisition cost. Entitlements acquired or granted for no cost are not brought to account. Entitlements have an indefinite life and so their costs are not amortised. The carrying value is assessed annually for impairment.
(h) Financial Instruments - Financial instruments are accounted for in accordance with AASB 9: Financial Instruments – Measurement and Recognition.
Broadly, financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the Company commits itself to either purchase or sell the asset.
Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified “at fair value through profit or loss” in which case transaction costs are expensed to profit or loss immediately.
(i) Impairment of Assets - At each reporting date the Club reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such indication exists, then the recoverable amount of the asset is compared to the carrying value, and any excess in carrying value over the recoverable amount is expensed.
Where the future economic benefits of the asset are not primarily dependent upon the asset's ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.
(j) Trade and Other Payables - Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the company during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Due to the short-term nature of these payables, the carrying value is assumed to equal the fair value.
(k) Employees’ Benefits - Provision has been made for long service leave and annual leave
in accordance with statutory requirements, based on pro rata entitlement on the wage and salary levels, including salary on-costs, of employees at reporting date.
The long service leave provision applies only to those employees who have completed at least five years’ service with the Club, which is based on experience of staff turnover. The amounts attributable to employees with at least ten years’ service is shown as a current liability, and the balance is shown as a non-current liability
Employee benefits that are expected to be settled within one year have been measured at the amounts 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 basis rather than the standards based present value of future cash flows method, however the result under each of these methods is not materially different.
Superannuation contributions are made to an employee superannuation fund and charged as expenses in the period in which they are incurred.
(l) Leases -
(1) Club as Lessee – the Club applies a single recognition approach for all leases, except short-term leases and low value assets. The Club recognises lease liabilities to make lease payments and right-of-use (“ROU”) assets representing the right to use the underlying assets.
ROU Assets
The Club recognises the assets at the commencement date of the lease. ROU assets are measured at cost less any accumulated depreciation or impairment losses. ROU assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful life of the asset.
Lease Liabilities
At the commencement of the lease, the Club recognises lease liabilities measured at the present value of the lease payments to be made over the lease term, including any purchase option available
at the end of the term where it is reasonably certain to be exercised by the Club.
In calculating the present value of lease payments, the Club uses its incremental borrowing rate at the lease commencement date unless the interest rate implicit in the lease can be determined. After commencement date, the lease liability is increased to reflect the interest accrued and reduced by the lease payments.
Short term leases and leases of low value assets Club applies the recognition exemption for leases with a term at commencement of less than 12 months and to leases of assets considered to be of low value. Such lease payments are recognised as an expense over the term of the lease.
(2) Club as Lessor – rental income from operating leases is recognised as revenue in the period it is earned.
(m) Income Tax - Income tax expense for the year comprises current income tax expense and deferred income tax expense. Current income tax expense charged to the profit and loss is tax payable on taxable income calculated using current tax rates as at reporting date. Current tax liabilities are therefore the amounts expected to be paid in the forthcoming financial year.
Deferred income tax expense reflects movements in the deferred tax asset and deferred tax liability balances during the year as well as where applicable unused tax losses.
Deferred tax assets and liabilities are ascertained based on temporary differences between the tax bases of assets and liabilities and their carrying amount in the financial statements.
Deferred tax assets arising from deductible temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the deferred tax assets can be utilised.
The Club is a non-profit entity and can apply the “principle of mutuality” whereby net income derived from members is exempt from income tax.
(n) Current versus Non-Current Classification - The Club presents assets and liabilities in the statement of financial position based on current/non-current classification.
An asset is current when it is: expected to be realised, sold or consumed in the normal operating cycle; held for the purpose of trading; expected to be realised within twelve months after reporting date; or cash or cash equivalent. All other assets are classified as non-current.
A liability is current when it is expected to be settled in the normal operating cycle; held primarily for trading; due to be settled within twelve months after the reporting date; or there is no unconditional right to defer settlement of the liability for at least twelve months after reporting date. All other liabilities are classified as non-current.
(o) Comparative Figures - Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year. When an entity applies an accounting policy retrospectively, makes a retrospective restatement or reclassifies items in its financial statements, a statement of financial position as at the beginning of the earliest comparative period must be disclosed.
(p) Significant Accounting Estimates, Judgements and Assumptions - The Directors evaluate estimates, judgments and assumptions incorporated in the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable 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 longterm liabilities.
(3) Member loyalty program liability for points redemption.
(4) Incremental borrowing rate used to capitalise certain leases liabilities.
(q) 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.
2. REVENUE & EXPENSES
The following specific items are included in the net profit for the year:
(a) Revenue from contracts with customers:
Revenue from sale of goods
Revenue from services
Geographical Markets
- Australia
Timing of Revenue Recognition
- Goods and services at point of time
- Services transferred over time
(b) Other Income
- Rental Income
- Other income
(c) Finance costs:
- Bank loan interest
- Hire purchase & chattel mortgage
- Lease charge - other leases
(d) Depreciation & amortisation
- buildings
- gaming equipment
- other plant & equipment
- loss on disposal of fixed assets
(e) Auditor's remuneration:
- audit of the financial statements
- fees for other services 2022
Employee benefits:
- defined contribution superannuation plans
- the Club contributes 11.0% of each employees' base salary as perscribed by law (10.5% prior to 30/06/2023)
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.
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 25% is:
Current tax expense
Deferred tax liability - increase
4. CASH AND CASH EQUIVALENTS
deposit
These financial assets are held at amortised cost.
5. TRADE AND OTHER RECEIVABLES
Trade
Sundry debtors
Provision for doubtful debts
These financial assets are held at amortised cost. Trade receivables are not interest-bearing and usually settled within 30 days.
6.
Non-Current
-
in listed securities, at cost
OTHER CURRENT ASSETS
9. PROPERTY, PLANT & EQUIPMENT
Freehold land & buildings, at fair valueClubhouse & carpark:
At independent valuation - 2022
Additions & renovations - at cost
Capital works in progress - at cost
Less: Accumulated depreciation
Other properties:
At independent valuation - 2022
Less: Accumulated depreciation
Total Land & Buildings
Plant and equipment, furniture and fittings:
At cost
Less: Accumulated depreciation
Gaming machines:
At cost
Less: Accumulated depreciation
Total Property, Plant & Equipment
79,000,000 229,180 140,772 79,369,925 (1,204,435) 78,165,517 12,900,000 12,900,00012,900,000 91,065,517 30,006,965 (19,284,802) 10,722,163 16,308,237 (11,766.155) 4,542,082 106,329,762
79,000,000142,162 79,142,16279,142,162 12,900,000 12,900,00012,900,000 92,042,162 27,818,446 (17,411,843) 10,406,603 15,748,494 (11,298,851) 4,449,643 106,898,408
The freehold land and buildings were independently valued by Global Valuation Services Pty Ltd on 31 August 2022 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 2022. 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 2022. 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 as at 31 December 2023. The Directors do not believe that there has been a material movement in the fair values since the last independent valuation.
RECONCILIATIONS OF CARRYING VALUES
Land & Buildings
Carrying value at start of year
Additions
Revaluations
Depreciation
Carrying value at year end
Plant & Equipment
Carrying value at start of year
Additions
Disposals
Depreciation
Carrying value at year end
Gaming Machines
Carrying value at start of year
Additions
Disposals
Depreciation
Carrying value at year end
Total Carrying Value
Carrying value under the cost model of assets at fair value: - Freehold land & buildings
(27,431) (1,642,384)
The carrying amount of assets pledged as security are:
- Freehold land & buildings
- Gaming machines & equipment
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 2023 ($)
10. RIGHT OF USE ASSETS
Plant and equipment, furniture and fittings:
The following amounts were recognised in the profit & loss account in
to right of use assets:
11. INTANGIBLE ASSETS
Gaming machine entitlements, at cost
Less: Provision for Impairment
Carrying value at start of year Additions
Impairments
Carrying value at year end
12. TRADE AND OTHER PAYABLES
Trade creditors & accruals
Trade payables are not interest-bearing and usually settled within 30 days
13. FINANCIAL LIABILITIES
CurrentBank loan
Hire purchase liabilities
Deferred charges
Non-CurrentBank loan
Hire purchase & chattel mortgage
The Club has a borrowing facility with the Commonwealth Bank of Australia. The bank loan facility, bank overdraft, 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.
The bank loan is a Market Rate Loan facility which commenced on 20 September 2021 with a term of 5 years. The current facility limit is $5,531,250. The facility requires quarterly principal repayments of $523,125 commencing 27 December 2023.
Covenants imposed by the bank in relation to the loan facility require minimum earnings before interest, tax, depreciation & amortisation (EBITDA) of $3,200,000 on a rolling 12 month basis; and a maximum loan to value ratio (LVR) of 30%. The LVR at balance date was 13.52%
The Club has an equipment finance facility of $1,000,000 with Bank of Queensland which expires on 16 March 2024 and is generally renewed annually. Equipment purchased using this facility is subject to a specific security agreement, whereby the Club grants a registered security interest for equipment purchased. The facility is not secured by mortgage.
The weighted average interest rates on the bank loans and asset finance facilities are:
Loan facility 6.22%
Hire purchase & asset finance facilities 9.38%
The proportion of borrowings to net tangible assets at year end was 5.3% which is less than the 60% limit prescribed in the Club's constitution.
These financial liabilities are held at amortised cost.
FINANCING FACILITIES
The Club has the following financing facilities:
Asset finance facilities
Bank lending facilities
Bank guarantees
Bank overdraft
Corporate credit cards
Amounts used
Unused facilities
14. LEASE LIABILITIES
2023 ($) 2022 ($)
Club as a lessee - the Club has lease contracts for various items of equipment used in its operations, including right of use assets. The lease terms are generally between 3 and 5 years. The Club's obligations under the leases are secured by the lessor's title to the leased assets.
The Club on occasions has short-term (12 months or less) leases and/or leases with low value. The Club applies the recognition exemption for such leases.
LEASE LIABILITIES
- Current Liability
- Non-Current Liability
Reconciliation to liability
Opening Liability
Interest accrued
New Leases
Less: Payments
Closing Liability
Maturity Analysis
- Less than 1 year - From 1 to 5 years - Greater than 5 years
15. EMPLOYEE BENEFITS LIABILITIES
Accrued annual leave
Long service leave
Represented by:
Current Liability
Non-current Liability
Reconciliation of Liability:
Opening balance
Accrued benefits
Less: Payments
Closing balance
16. TAX LIABILITIES
Non-Current -
Provision for deferred tax liabilities
Provision for deferred CGT liabilities
17. OTHER LIABILITIES
18. CONTINGENT LIABILITIES
(a) Bank guarantees
(b) Gaming machine jackpots
(c) Legal liabilities
There are no other material legal matters pending against the Club.
19. CAPITAL COMMITMENTS
Capital expenditure commitments contracted for:
- Building refurbishment costs
- Plant and equipment purchases
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) The following persons were non-executive directors of the Club during the financial year:
Robert Kennerley
Terence Clarke
Michael Brodie
Norm Bakker
Denis Dempsey
Wai Han Ho (Sharon)
John Warren
Kerrie Daynes
(b) Other key management personnel:
Mario Machado (Chief Executive Officer)
Daisy Brown (Chief Operating Officer)
Andy Fung (Chief Financial Officer)
Stuart Gabriel (People & Culture)
James Nicholas (Executive Chef)
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. Except for the disclosures below, the value of these services are immaterial and details of these services arrangements are available on request from the CEO.
The Club has for many years engaged GNB Productions ("GNB") to provide services including electrical works, audio visual, IT and related equipment purchases. GNB is related to a senior executive, and so the engagement with GNB is considered to be a related party transaction. The services provided were on commercial arms-length terms, and are fully disclosed in accordance with the applicable regulations. The value of the related party transactions with GNB for the year was $193,021 (2022: $295,639) excluding GST. There was $4,286 owing to GNB at year end.
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, except $1,060 was owed by Wai Han Ho.
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 21.
Directors and other key management personnel attended various industry exhibitions, conferences and other training events. All costs associated with these events are paid for by the Club and/or club suppliers. The individuals attending these events are reimbursed for reasonable incidental travel costs.
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.
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 2023 the number of members was 32,584 (2022: 32,983), and the total members' liability was $65,168
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 – Simplified Disclosure.
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 – Simplified Disclosure; and
(b) give a true and fair view of the Company’s financial position as at 31 December 2023 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 DirectorDated: 4 March 2024
Independent Auditor's Report
To the Members of Hornsby RSL Club Limited
OPINION
We have audited the financial report of Hornsby RSL Club Limited (the company), which comprises the statement of financial position as at 31 December 2023, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of Hornsby RSL Club Limited is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the company's financial position as at 31 December 2023 and of its performance for the year then ended; and
(b) complying with Australian Accounting Standards - Simplified Disclosure and the Corporations Regulations 2001.
BASIS FOR OPINION
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 : Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the company, would be in the same terms if given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
INFORMATION OTHER THAN THE FINANCIAL REPORT AND AUDITOR’S REPORT THEREON
The Directors are responsible for the other information. The other information comprises the information included in the company's annual report for the year ended 31 December 2023 but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL REPORT
The Directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL REPORT
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.
As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the
Independent Auditor's Report
related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.
• 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: 15 March 2024
BRIGDEN
& PARTNERS PTY LTD, CHARTERED ACCOUNTANTSDavid Smith – Director
Level 3, 20 George Street, Hornsby NSW 2077
ClubGRANTS
2022 - 2023
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 $577,338 to many community groups and organisations.
Category 1 - 236,118
Category 2 - 239,287
Category 3 - 101,933
Below is a list of organisations who received Category 1 Grants:
Epilepsy Action Australia
Hornsby & District TPI Social & Welfare Club
Dance for Parkinson's Australia
The Dish of St John's Wahroonga
Rainbow Club
Northern District Cricket Club
Women's Justice Network
NSW GOALBALL
Hornsby/ Kuringai Stroke Recovery Club
StreetWork Australia
Hornsby Ku-ring-gai Women's Shelter
Hornsby Woodworking Mens Shed Inc.
The Northcott Society
RSL & Service Clubs Association
Cancer Patients Foundation
Odyssey House NSW
Bridge for Asylum Seekers Incorporated
Westleigh RFB
Nordoff-Robbins Music Therapy Australia Ltd
The Shepherd Centre - For Deaf Children
Northside CALD Carers Network
CareFlight
Stand Tall-The Event
Learning Links
Macular Disease Foundation Australia
Hornsby RSL Sub-Branch
Vision Australia
Indian Seniors Group Hornsby Inc
Fair fight Foundation ltd
Royal Life Saving NSW
Our National Heart Pty Limited
RSL LifeCare
Girl Guides Association (New South Wales)
Cancer Council NSW