Page 1

NORTHS GROUP 2017 ANNUAL REPORT

1NORTHS GROUP INCORPORATING: NORTHS, THE GREENS NORTH SYDNEY, LANE COVE CLUB AND SEAGULLS TWEED HEADS


2


TABLE OF CONTENTS NORTHS Group in the community

4

President and CEO’s Report

46

Directors' Report

48

Auditor's Independence Declaration

51

Statement of Profit or Loss and Other Comprehensive Income

52

Statement of Financial Position

53

Statement of Changes in Equity

54

Statement of Cash Flows

54

Notes to the Financial Statements

55

Directors' Declaration

70

Auditor's Report

71

3


NORTHS GROUP IN THE COMMUNITY NORTHS, THE GREENS AND LANE COVE CLUB

CLUBGRANTS CATEGORY 1 RECIPIENTS Dance Chance Development Project Phoenix House Youth Services Building Sustainable Living Skills Program Learning Links Occupational Therapy at Cammeray Public School Counting for Life Program at Anzac Park Public School North Sydney Women’s Benevolent Association Mary’s House Domestic Violence Shelter, IT Project Catholic Care Diocese Broken Bay Naremburn Family Centre ‘Keeping Kids in Mind’ Program Gidget House Extended Operating Hours The Kirribilli Neighbourhood Centre Wellbeing for Mother’s ‘Happy Mum, Happy Bub’ Program North Sydney Police Citizens Youth Club (PCYC) NSW Fresh Start Program St Vincent de Paul Society NSW The Shelter Project Mary’s House Rebuilding Lives Taldumande Youth Services Financial Assistance Program for Homeless Youth Kids Like Brett Providing Medical Equipment for Sick Children Vision Australia Limited Orientation and Mobility Services in North Sydney LGA Betsafe

CLUBGRANTS CATEGORY 2 RECIPIENTS North Sydney District Rugby League Football Club North Sydney District Junior Rugby League Football Club

4


NORTHS GROUP IN THE COMMUNITY NORTHS, THE GREENS AND LANE COVE CLUB

INTRA-CLUBS

Baseball

Bowls

Bridge

Chess

Cricket

Euchre

Fishing

Golf

Hockey

Indoor Bowls

Junior League

Photography

Runners

Snooker

Softball

Squash

COMMUNITY PARTNERSHIPS Qantas Pathfinders Revue The Resilliance Project Stand Tall The Event Northbridge Football Club Northern Suburbs Netball Association Centre for Volunteering Stars of the North Dance for Cancer, Cancer Council

Table Tennis

Tennis

STAFF-LED FUNDRAISING AND VOLUNTEERING Daffodil Day Movember Jeans for Genes RU OK? Day Pink Ribbon Day

$355,485.

Additional in-kind support funding of In-kind support is often accepted as an alternative, or additional, to a financial contribution. NORTHS has contributed more than $355,485 through the giving of goods, services and resources to local organisations and groups.

5


NORTHS GROUP IN THE COMMUNITY SEAGULLS

CLUBGRANTS CATEGORY 1 RECIPIENTS Camp Quality St Vincent de Paul Society Kids in Need Association Inc Ladies in League Lara Jeans Association Inc Life Education NSW Little Wings Limited Max Potential NSW Police Force - Tweed Byron Local Area Command Riding for the Disabled, Tweed Valley Centre Salvation Army - Red Shield Appeal Tweed Heads Seagulls RLFC Ltd Tweed Heads/Coast Liquor Accord Tweed Valley Early Childhood Intervention Service Inc Tweed Wildflowers CF Twin Towns Kindergarten Association You Have a Friend Youth Frontier BetSafe

CLUBGRANTS CATEGORY 2 RECIPIENTS Tweed Heads Senior Rugby League Club Seagulls Junior Rugby League Tweed United Football Club Inc Seagulls Sports Council Tweed/Byron Group Junior Rugby League AMAA Condong Bowls Club Marine Rescue - Point Danger Men of League

6


NORTHS GROUP IN THE COMMUNITY SEAGULLS

INTRA-CLUBS

500 & games

Fishing

Chess

Croquet

Junior League

Netball

COMMUNITY PARTNERSHIPS

Darts

Dragon Boats

S.E.A.T.S

Euchre

Tenpin Bowling

ADDITIONAL IN-KIND SUPPORT FUNDING

Animal Welfare League QLD March for Melanoma The Family Centre, Tweed Heads

$27,753.88

STAFF-LED FUNDRAISING AND VOLUNTEERING

seagulls Community Support Squad

The Family Centre Christmas Gift Wrapping

You Have a Friend (Footsteps 4 Food)

The Family Centre Tweed Heads

7


A GLIMPSE OF 2017

In 2017 there were 37 live ticketed shows at NORTHS delighting 11,395 people

Over 400,000 copies of NORTHS nJOY magazine distributed around the local area

252,047 main meals were served in 2017 throughout the NORTHS group

TOTAL EMPLOYEES OF THE NORTHS GROUP 341 Number of employees by venue

162

74

92

13

NORTHS

The Greens

seagulls

Lane Cove Club

$13,800 profit from Learning Links Charity Housie is equivalent to 184 therapy sessions for children with learning difficulties

8

Over $355,485 donated to the NORTHS community through in-kind donations alone

The Greens North Sydney hosted in excess of 500 Christmas Parties in 2017.

The Northern Suburbs Netball Association juniors played at The Greens North Sydney.


TOTAL MEMBERS OF THE NORTHS GROUP 64,125

Number of members by venue as at 31 December 2017 - Note that members of NORTHS Fitness and Revolution Health and Fitness are automatically members of NORTHS and seagulls respectively.

NORTHS CAMMERAY

21,998 LANE COVE CLUB

892 NORTHS FITNESS

3,052 SEAGULLS

20,992 THE GREENS NORTH SYDNEY

20,243 REVOLUTION FITNESS

1,483

STAFF YEARS OF SERVICE

271 < 5 YEARS

13

9 6-10 YEARS

11-15 YEARS

16

32

16-20 YEARS

> 20 YEARS

9


DID YOU KNOW?

Across the NORTHS Group’s two largest properties, NORTHS and seagulls the clubs reduced their energy consumption significantly from the baseline of 2012.

ELECTRICTY CONSUMPTION Down 17%

GAS CONSUMPTION Down 41%

WATER CONSUMPTION Down 35%

ENERGY SAVINGS

WATER SAVINGS

ENERGY SAVINGS

WATER CONSUMPTION

Cumulative energy savings to February 2018 from baseline $1,303,284

Cumulative water savings to February 2018 from baseline $282,739

Cumulative reduction in energy consumption from baseline 28,657 GJ

Cumulative reduction in water consumption from baseline 60,782 kL

BEING RESPONSIBLE ABOUT GAMBLING

As well as being a founding member of the BetSafe Responsible Gambling Program, the NORTHS Group is a member of the National Institute for Gambling Studies Inc – Australia’s leading research forum into all areas of gambling activity. The National Association of Gambling Studies develops knowledge and understanding of gambling and gambling-related issues in the community.

NORTHS FITNESS AND REVOLUTION AT SEAGULLS Significant increases during 2016 - 2017

34% GROWTH Member attendance at NORTHS Fitness classes

10

13.9 % INCREASE In membership at Revolution Health and Fitness at seagulls


CLASS STATISTICS FOR NORTHS FITNESS 2017

91,982 Total attendance

57%

Average penetration on all member visits

1,769

Avg. Weekly attendance. Approx 20 participants per class

3,053

Total members of NORTHS Fitness

COMPARED TO 2016 NORTHS Fitness class statistics

TOTAL ATTENDANCE 68,417

AVG. PENETRATION ON MEMBER VISITS 56%

AVG. WEEKLY ATTENDANCE 1,652

11


MEALS SERVED BY CLUB Favourite meals served by our clubs

NORTHS Favourite meal: Chicken Schnitzel with 7,232 served 5,816 kids meals

THE GREENS Favourite meal: The Greens Burger with 20,495 served 14,300 kids meals

LANE COVE CLUB Favourite meal: Chicken Schnitzel with 895 served 144 kids meals

SEAGULLS Favourite meal: Tuesday special (steak) with 8,444 served 3,035 kids meals

12


SEAGULLS JUNIOR RUGBY LEAGUE Founded in 1909, Tweed Heads “seagulls” Junior Rugby League has been the longest standing club in the Tweed/Byron district and Group 18 Junior Rugby League Competition. With the support of the NORTHS Group and the coaches, volunteers and parents, seagulls junior rugby fosters the game throughout the Tweed Coast, with many of our players going on to play rep football at regional, state and even national level. The seagulls junior rugby league club had a successful 2017 season with a record five teams making the grand finals. The U10s, 11s, 12s, 14s and 16s all had stand out seasons to reach the finals, with the 11s winning their final, making it back to back championships for the team. The Minis and Mods U8s, 10s, 11s and 12s won their finals in the DB Cup at the start of the year in their respective A&B Grades. Two players were selected to the Under 18’s Marlins representative team - Liam Robinson and Jordan Tauali’I, while 14s players Jayden Aberdeen and Jack Sharp were also selected to play rep football. These players competed in the Andrew Johns Cup and the Laurie Daily Cup. With the pathway from the seagulls to the Gold Coast Titans, our juniors were fortunate enough to spend time with Titans players throughout the course of the season. The successful year saw a sharp increase in numbers from the 2017 season to the 2018 sign on as well as the addition of the Munchkin league! seagulls junior rugby would like to thank the sponsors who continue to support us and help us making a difference to over 180 kids.

13


NORTH SYDNEY BEARS AND JUNIOR RUGBY LEAGUE â&#x20AC;&#x153;Both the North Sydney Bears and the North Sydney Junior League are operational largely because of the ongoing support of the NORTHS Group. There are over 1,000 men and women participants, officials, referees and volunteers who give their time to Rugby League, and NORTHS help to provide them an opportunity to be involved in sport, in a safe, fun and supportive environment. In season 2017 the North Sydney Bears competed in the New South Wales Intrust Super Premiership (open age), the SG Ball (u/18) and the Harold Matthews (u/16) competitions. Players in these competitions are on the pathway to the NRL, and all of the expectations of a highperformance program are provided to these young athletes. In the age groups of u/13, u/14, and u/15, local players are selected into development squads and are exposed to a higher standard of coaching and competition, within an intensive 8-week program. In season 2017 the North Sydney Junior League experienced growth in participation numbers. There are 8 clubs across the district including North Sydney Brothers, Willoughby Roos, Lane Cove Tigers, Kuringai Cubs, Hills Hawks, Pennant Hills/Cherrybrook Stags, Asquith Magpies and Berowra Wallabies, starting with players from u/6 through to A grade. The North Sydney Junior League helps develop clubs and individuals who want to play the game, become a coach, provide game day medical support or just help out in the canteen.â&#x20AC;? Greg Florimo General Manager North Sydney Bears North Sydney Junior Rugby League

14


Photography: Ian Reilly

15


he Club also has a successful Representative program, The North Shore Mariners. These ams are directly linked to the Central Coast A League Team. This link serves as a pathway rogram to the National Competition for both players and coaches.

ust as the program has grown dramatically over the past decade the demand for better cilities, equipment and coaching expertise has also grown.This is where Norths has ecome an outstanding supporter. Norths have provided much needed funding that filters rough all parts of the Club, from the Under 6 Mini Roos to the Over 45 Seniors.

orths also provides the perfect venue for all our big and small events. From a simple am dinner to a spectacular major presentation for 400 plus guests in the Clubâ&#x20AC;&#x2122;s theatre.

orthbridge FC is proud of our association with Norths and will continue to explore more ays to create closer ties between our members and all facilities, Cammeray, The Greens North Sydney and the Lane Cove Club.

16


NORTHBRIDGE FOOTBALL CLUB “Northbridge FC and the North Shore Mariners thank NORTHS for their ongoing support. Northbridge is one of Australia’s biggest Football Clubs with around 2,500 players, aged between 5 and 65, The majority of the players are part of community teams that compete in the local Northern Suburbs Football Competition. The Club also has a successful Representative program, The North Shore Mariners. These teams are directly linked to the Central Coast A League Team. This link serves as a pathway program to the National Competition for both players and coaches. Just as the program has grown dramatically over the past decade the demand for better facilities, equipment and coaching expertise has also grown. This is where NORTHS has become an outstanding supporter. NORTHS have provided much needed funding that filters through all parts of the Club, from the Under 6 Mini Roos to the Over 45 Seniors. NORTHS also provides the perfect venue for all our big and small events. From a simple team dinner to a spectacular major presentation for 400 plus guests in the Club’s theatre. Northbridge FC is proud of our association with NORTHS and will continue to explore more ways to create closer ties between our members and all facilities – NORTHS Cammeray, The Greens in North Sydney and the Lane Cove Club.” Kym Griffen, General Manager

17


NORTHERN SUBURBS NETBALL ASSOCIATION â&#x20AC;&#x153;Northern Suburbs Netball Association would like to thank NORTHS Cammeray for coming on board as our Gold Sponsor in 2017. The funds were used to help pay for our Coaching Program which included specialist coaching from the NSW Swifts for our Representative Players. This Coaching Program enables us to develop both our Representative players (ages 11-15yrs plus our metro league players aged 16-opens) and players on a club level. Additionally we ran an umpiring program for all clubs wanting more specific mentoring. These funds contributed significantly to the progression of these programs. The generous contra was used to bring together our Metro League teams at an end of season celebration (which has never previously been done before), we ran a trivia night for our Premier League team NORTH SHORE UNITED, held a subsidised social evening for umpires and thanked all our wonderful volunteers with a luncheon immediately following our AGM which was held at NORTHS. We were also able to hand out gift vouchers to our tireless committee members, none of whom ever previously received a thanks due to budget constraints. These gestures spoke volumes for our association and have helped build a culture within our Association that enables us to reinforce how valued our people are within our community. We sincerely thank NORTHS for being a part of our netball family and look forward to the sponsorship continuing in 2018 and beyond.â&#x20AC;? Glenys Paranihi President

18


19


20


DANCE CHANCE VOLUNTEER DEVELOPMENT PROGRAM â&#x20AC;&#x153;Dance Chance is so pleased to have had the support and backing of NORTHS over the past few years. 2017 was a big year of transition for our dance group for people with a disability. After 8 years in the one location, we were required to move to a new venue for our weekly class. This also meant that we had to change the structure of our class and the time commitment for volunteers increased from 1 hour to 2. Our volunteers are the backbone of our community, they provide guidance, friendship and support to over 30 dancers. We recognised that we would have to invest in our volunteer development to ensure that we were able to recruit more volunteers into the group to cover the longer duration of the class. NORTHS provided us with the backing to do that by funding our volunteer development project. As a result of the backing of NORTHS, we were able to add 5 new volunteers teams and continue to deliver Dance Chance to the quality that our community deserves.â&#x20AC;? Jess Timmins, President, Dance Chance

21


PHOENIX HOUSE YOUTH SERVICES TRANSIT PROGRAM Phoenix House were able to make a significant difference to the lives of 11 young people in the recent Transit cohort from August to December 2017, funded by NORTHS. Transit is a highly successful program, and has been funded by NORTHS ClubGRANTS over a number of years. The program is their intensive re-engagement course, which runs together with TAFE for 16 weeks, during which the young people are assigned a case manager, have access to a counsellor, complete the FRIENDS Youth Resilience program, and participate in any number of their more social programs – most commonly, Active Tuesdays and Feel Good Nights. Of the 14 young people enrolled into the program 11 of them graduated, achieving 79% completion rate. Over 70% of them will be pursuing further study, primarily Certificate III courses or progressing on an academic pathway toward attaining their HSC qualification. The completion rate is pleasing, particularly when considering the nature of their clients – disengaged from education (often as a result of very negative experiences), experiencing homelessness, addressing mental health issues, substance use and fractured home lives. The NORTHS and Phoenix House relationship has further developed in 2017 with a NORTHS staff member participating in some Feel Good Nights by cooking and NORTHS hiring a graduate of Phoenix House’s Transit program.

PROGRAM GOALS “Our goal is really to improve all aspects of a young person’s life and the opportunities that lie ahead. Learning difficulties, family breakdowns, mental health and anxiety can happen anywhere, regardless of the area or wealth of the community.” Jerico Naves Phoenix House Youth Development Specialist

22


FEEDBACK FROM GRADUATES OF THE RECENT TRANSIT PROGRAM: Self-reported scores for hope and self-belief:

23


24


LEARNING LINKS THERAPY IN SCHOOLS PROGRAM, CAMMERAY PUBLIC SCHOOL A Learning Links Occupational Therapist has been working within Cammeray Public School to build teachers capacity to help children with learning difficulties. The therapist – who works at Cammeray Public School one day a week is solely funded by the ClubGRANT from NORTHS. How the support is making a difference…. A* has microcephaly (a medical condition in which the brain does not develop properly resulting in a smaller than normal head) and has difficulties with her gross motor skills, balance and coordination as well as muscle tone. Following Occupational Therapy A* has increased core tone, endurance and improved confidence with her gross motor skills. A* also received intervention for her visual memory skills and this has positively increased her spelling and reading recall skills.

LEARNING LINKS COUNTING FOR LIFE PROGRAM, ANZAC PARK PUBLIC SCHOOL The second NORTHS ClubGRANT for Learning Links granted funding for 10 places in their Counting for Life Program. Learning Links’ Counting for Life Program is an early intervention numeracy program for primary school aged children. The program works by marrying a school with volunteers from the community to help children weekly for 10 weeks to improve their numeracy skills and enhance their self-esteem and confidence. The goal is to fill existing numeracy gaps of struggling students and engage NORTHS staff and the community to become volunteers.

25


VISION AUSTRALIA ORIENTATION AND MOBILITY SERVICES IN NORTH SYDNEY LGA “Vision Australia would like to thank NORTHS for their generous support of our Orientation and Mobility program in the North Sydney area. NORTHS have helped transform the lives of 6 clients living in the North Sydney area by providing them with a tailored Orientation and Mobility service and white canes that is paramount to their well-being, both physical and emotional and to ensure safe, equitable and independent travel in their community.” Yael Berger Gudes Vision Australia Living with blindness or low vision can be extremely frustrating, especially when newly diagnosed. Everyday tasks such as locating items in the kitchen, hanging out the clothes, walking down the street, going to the library or other community facilities can become insurmountable and sometimes dangerous. Vision Australia’s Orientation and Mobility (O&M) program is designed to tailor an adequate strategy for regaining confidence at home without fear of falling or tripping, walking to the bus stop without fear of disorientation, and to being able to continue to actively participate in social, work, recreational or other pursuits. These impacts serve to increase the diversity and interconnectedness of the community and its’ members, as well as expanding its awareness and ability to look after the needs of those living with blindness or low vision. Participants have reported acceptance of their vision loss more readily when they can maintain their independence in their daily life, feeling more comfortable in accessing public transport, continuing to meet friends for social interactions and maintaining control over aspects of their life that are personal and private. Because orientation and mobility skills are generally non-transferable, sessions were based where the client requires orientation to new or familiar environments, such as medical centres, the bank, shops and other places they normally would frequent in their local community, including their favourite local Club.

26


27


28


NORTH SYDNEY WOMEN’S BENEVOLENT ASSOCIATION MARY’S HOUSE DOMESTIC VIOLENCE SHELTER IT PROJECT NORTHS funded an extensive IT project which has enabled Mary’s House residents, employees and volunteers to have a dependable and accessible IT system which integrates all aspects of the business. Now each area can access and communicate sensitive information securely. The purpose of the IT project is to enable Mary’s House to operate effectively with an IT platform that integrates secure and efficient client management with flexible and secure communications. “Thank you to NORTHS for the incredibly generous grant that we received from you under the ClubGRANTS program. We are humbled by, and grateful for, your generosity. Your generous grant means that we can further improve the IT environment of Mary’s House which is so important in enabling us to operate efficiently and safely.” Liz Mackinlay Chair North Sydney Benevolent Association Limited

29


GIDGET FOUNDATION AUSTRALIA EXTENDED OPENING HOURS Gidget Foundation Australia is a not-for-profit organisation that provides programs to support the emotional wellbeing of expectant and new parents. Gidget was the nickname of a young mother who took her own life while suffering postnatal depression. All those close to her were unaware she was suffering so desperately and were devastated by her death. The Gidget Foundation evokes Gidget’s warmth and lively spirit. Established by Gidget’s friends and sisters in 2001, the Foundation has grown significantly and is now supported by passionate individuals, community leaders and health professionals. Nearly 1 in 5 mothers and 1 in 10 fathers will experience perinatal depression and anxiety that is often hidden and not fully understood. It impacts around 100,000 Australians each year, and suicide is the leading cause of maternal death. Nearly 50% of all parent’s experience adjustment disorders. “The support from NORTHS, via a ClubGRANT, has allowed the Foundation to expand operating hours of Gidget House North Sydney, to allow more parents to access the service. Gidget Foundation Australia is incredibly grateful to NORTHS for their support and commitment to supporting local families.” Natalie Speranza Business Development Manager

30


31


32


THE KIRRIBILLI CENTRE WELLBEING FOR MOTHERS ‘HAPPY MUM, HAPPY BUB’ PROGRAM “It is with so much appreciation we have yet again been able to run this extremely important program, with the support of NORTHS. Our program helps those mums who are at their most vulnerable. The mums who attend our program are in need of support, coping skills, friendship, help and most of all understanding. These mums feel isolated, ashamed and feel they are at the end of the road, nowhere to go and no one to help. Mums are faced with a barrage of social media pressure to be perfect, but in reality, life just isn’t like that. The pressure on today’s parents is immense, especially for those suffering or at risk of suffering from PND. The fact we are able to support struggling mums through our program has been tremendous. Here are some comments from a few mums that attended our 2017 groups.” Jo, Programs and Marketing Manager, The Kirribilli Centre Sara – I meet some lovely women who I will continue to see and I very much appreciated coming to the group, the support from other mums and TKC and staff has been just wonderful and it was nice for my son too. I would definitely recommend this programme to anyone who is having a challenging time as a mum. Both the professional help and group support was fantastic – how lucky are we to have this program. Bella – This was the best thing I have done. I was really struggling in the first few weeks. Although it has become easier, this group helped share but also put my own issues into perspective. Most importantly, I made some great friends and got to know TKC. I feel very supported and part of the community – very important when you are on your own far from family. Natasha – This program was much better than I expected! I found it beneficial and would recommend it to others. Thank you so much – it was better than anything else I have tried. Staff, other mums and our facilitators were amazing! I left the program feeling more confident and to be honest, a much better mum. Most importantly, I learnt not be so hard on myself. Alice – From the bottom of my heart thankyou – you don’t know how much this program meant to me. I felt alone, scared, confused, ashamed and isolated. The friends I made, the incredible supportive people made my life, and that of my baby, better. Please keep doing this program, because I know it will help many other mums – especially us first time mothers who struggle. (Names have been changed due to confidentially).

33


ST VINCENT DE PAUL SOCIETY NSW THE SHELTER PROJECT The ‘Shelter Project’ is a program of specific assistance to people who are disadvantaged and marginalised and at risk of losing the roof over their heads. This may be because they have fallen behind in their rental payments for reasons such as illness and increased medical expenses, or because of the increasing cost of private rental which can absorb 80-90% of their income. At times, the choice may be between having food on the table and electricity connected or paying the rent. Regardless of the reason these vulnerable people, many of whom are experiencing mental health issues, face eviction and homelessness. The majority of those assisted through the Shelter Project have experienced homelessness in the past and suffered the indignity, the cold, the theft of their possessions and, frequently, the violence at the hands and boots of others that often comes with homelessness. They fear letters arriving in the mail and often do not open them, particularly window envelopes because they are generally bills. But their greatest fear is of receiving a notice of eviction or a letter advising the intention to terminate the tenancy, even in situations where their accommodation is substandard. The Shelter Project has been supported by members of the St Vincent de Paul Society Northern Suburbs Region and NORTHS, ensuring that they have a safe place to call home and hope for the future. The funds have been used to pay rental arrears to enable people to remain in their homes and to assist people to move to more affordable and suitable housing. “To give people hope is a precious gift and through the Shelter Project, NORTHS has enabled many, who have had few breaks in life, to breathe again with hope.” Catherine Carmichael, Special Works Manager St Vincent de Paul Society NSW

ST VINCENT DE PAUL SOCIETY NSW MARY’S HOUSE DOMESTIC VIOLENCE SHELTER Mary’s House is a Domestic Violence shelter on the Lower North Shore of Sydney supporting women and their children who have experienced domestic violence. Through the assistance of a ClubGRANT from NORTHS, members of the St Vincent de Paul Society in the Northern Suburbs Region have been able to help residents of Mary’s House successfully transition from the shelter and establish new homes. Families come to Mary’s House in a time of crisis, typically bringing only their children and the clothes they are wearing. Once they are settled in the House, all their immediate needs are catered for: clothing, food, toiletries, privacy, counselling, company and security. When the time comes for these families to move from the service back into independent living in the community, Society members work in collaboration with Mary’s House to make this transition as smooth as possible. This has included providing beds, bedding and bedlinen; dining table and chairs; lounge and easy chairs; television; refrigerator and washing machine; cutlery, crockery and cooking utensils; and gift cards to enable them to purchase an initial stock-up of food, toiletries and cleaning items from supermarkets. The average cost of setting up a home for these vulnerable families is around $3,300. NORTHS grant has enabled three women and their children to establish a new home and begin to rebuild their lives with confidence and hope.

34


35


36


TALDUMANDE YOUTH SERVICES FINANCIAL ASSISTANCE PROGRAM Taldumande Youth Services is a not-for-profit organisation that supports vulnerable and homeless children, young people aged 12-21 years and their families. They operate the only 24/7 crisis refuge for young people in Northern Sydney and offer supported accommodation and community programs that provide a streamlined pathway from homelessness and family breakdown, to independence and stability. The funding from NORTHS helped provided our young people with the financial means to improve their overall well-being and fulfilment by enabling them to achieve their personal development, educational, employment and independent-living goals. The financial support gives them practical access to services and item which are deemed important in their developmental path and can include anything from food, clothing, education and training, and personal care. “Taldumande is pleased to have been supported by NORTHS once again this year. The funds had been directed to assist our accommodated young people enabling them to have access to food, clothing, education and training, transport and other independently living related expenses. Thank you, NORTHS, for your ongoing support.” Lisa Graham, CEO Taldumande Youth Services

BEING RESPONSIBLE RESPONSIBLE CONDUCT OF GAMING (RCG) As a registered club, we have an obligation to create a safe and healthy gaming environment for our patrons. For the majority of players gaming machines are a form of recreational activity that is conducted in a setting that complies with application legislation to minimise risk. The NORTHS Group require staff to have completed a course in Responsible Conduct of Gaming (RCG) in order for them to recognise the risk factors that do exist and the strategies in place to monitor and reduce them. The BetSafe Responsible Gambling Program was developed in 1998 by responsible gambling expert Paul Symond. BetSafe is considered the leading program of its kind in the world and now has a membership of over 50 clubs in NSW and the ACT. It is a detailed, comprehensive and integrated program that has been proven effective for more than a decade. North Sydney Leagues was one of the founding clubs. “BetSafe, an initiative of a number of large New South Wales clubs, represents the most thorough and coherent approach of its kind.” The Productivity Commission in its landmark report on Australia’s Gambling Industries.

37


THE FAMILY CENTRE THE GIVING TREE AND ANNUAL PLAYGROUP CHRISTMAS PARTY AT SEAGULLS We are extremely humbled to say that we received well over 100 gift donations to The Giving Tree in the lead up to Christmas. seagulls donated a further $1000 in electronic gifts and $500 in gift cards. Jo Blanchard of The Family Centre said, “We are so overwhelmed with generosity of your members! Our volunteer elves are wrapping the presents now!” A wonderful result for our first year! We are thrilled to report that all of these gifts were passed onto local families in need just in time for Christmas. The Family Centre services families in need on the Tweed Coast and Northern Rivers district, providing support, relationship education and homelessness services for children, young people and families. A non-profit organisation, TFC rely on community partnerships to build community and deliver outstanding services, reaching over 3500 children, young people and families each year. As long-time supporters of The Family Centre, seagulls also sponsored this year’s Annual Playgroup Christmas Party in our Jacana room with 60 children and their parents enjoying music, dancing, face painting and a special visit from Santa Claus himself! In the lead-up to Christmas several of our staff members also supported The Family Centre by donating time to wrapping gifts at Tweed Mall, with all proceeds going directly to supporting their programs in the local community. Thank you to all our members who donated to The Giving Tree, helping it to be one of the biggest fundraising initiatives The Family Centre has received. We look forward to this becoming a new seagulls tradition each Christmas, continuing to help our local community.

38


39


40


TWIN TOWNS KINDERGARTEN ASSOCIATION ENTRANCE UPGRADE Twin Towns Kindy (TTK) is a not for profit Lady Gowrie affiliated community kindergarten based in Coolangatta serving the local Tweed and Gold Coast area since 1961. TTK provides services for 44 local children aged 3.5 to 4.5 years and assists in their transition to Prep. Funding for the TTK was used to upgrade the entrance to protect families from rain and establish a dry waiting area that improves the safety and ease of access for children and their families.

KIDS IN NEED ASSOCIATION SERVICE PROVISION Kids In Need has an ongoing commitment to provide specialised equipment and/or treatment for local area children who are disabled or seriously ill, especially where families are financially stressed e.g single parent and/or low income. Funds donated will assist Kids In Need to continue to provide their services across the Tweed area.

41


RIDING FOR THE DISABLED ASSOCIATION (RDA) TWEED VALLEY NEW FACILITY Riding for the Disabled provides equine assisted activities for people with disabilities. The primary objective of Riding for the Disabled Association (NSW) is to provide most people with a disability, the opportunity to ride and enjoy all the activities connected with horse riding. Riding for people with a disability is both therapeutic and recreational and RDA (NSW) is in fact one of the few organisations who offer a multi-diagnostic service, catering for people with a wide range of disabilities. Horse riding is a unique form of exercise and rehabilitation. The complex movement of the horse helps to improve coordination, balance, muscular development and fitness. Horse riding and horse related activities assist greatly and often dramatically in the development and restoration of personal confidence, self esteem, communication skills, leadership and trust. For people with challenging behavior for example horses offer a powerful medium for restoring a sense of personal control, which significantly improves behavior towards family teachers and friends. They were in need of funds to build clean toilet and shower facilities for their volunteers and riders after the 2017 flood tipped their port-a-loo toilets over. The new facility ensures RDA provides clean, comfortable and hygienic facilities for all who visit.

LIFE EDUCATION TWEED HEALTHY HAROLD FUND Life Education is a not for profit, preventative health education charity focused on drug and alcohol misuse, healthy lifestyles, bullying, positive relationships and online safety. Our tailored learning experience educates children to develop knowledge, strategies, confidence and skills to make informed, safer decisions. Funds helped to set up the â&#x20AC;&#x2DC;Tweed Healthy Harold Fundâ&#x20AC;&#x2122;. The aim of this fund is to increase the engagement of disadvantaged children and help deliver our preventative health program to these children in the Tweed LGA.

42


43


44


DISCOUNTED ACCOMMODATION FOR MEMBERS FINGAL BAY, SUSSEX INLET AND URUNGA RESORT FACILITIES Kids Playground Heated Pool Water Park Spring-less Trampolines

Body Board Hire Sheltered BBQ areas Free WIFI

ACCOMMODATION FACILITIES The Federation of Community, Sporting and Workers Clubs Inc. boast three fantastic New South Wales coastal holiday destinations which Norths Group members have access to. Across these three locations, 110 modern two-bedroom and three-bedroom, completely selfcontained units and an apartments are available for holiday rental throughout the year. Each site also has specifically modified, fully-functional and accessible units for disabled patrons and their families. While prices vary according to peak and off peak periods, holidaying at any of these terrific locations is always affordable for couples and families alike. Special rates are also available for members of NORTHS, The Greens, Lane Cove Club and seagulls.

45


PRESIDENT AND CEOâ&#x20AC;&#x2122;S REPORT 2017 FINANCIAL STATEMENTS

2017 $

2016 $

Revenue

55,213,985

52,235,378

Expenses

44,007,414

40,872,050

11,206,571

11,363,328

843,042

748,921

Poker Machine Tax

6,834,442

6,786,720

State Government Taxes

7,677,484

7,535,642

Community Football

802,783

785,671

Community Club Grants

366,184

490,449

79,935

73,963

Total Community Support

1,248,902

1,350,083

Profit For The Year

2,280,185

2,477,603

Revaluation increment (decrement)

-

6,399,715

Gain on Amalgamation

-

6,506,902

Other comprehensive income for the year net of Tax

-

12,906,617

2,280,185

15,384,220

Operating Profit Payroll Tax

Community Other

Total comprehensive income for the year

FINANCIAL HIGHLIGHTS In 2017, The NORTHS Group increased revenue to $55 million. There was a comparable increase in costs as we managed the first full year operation of the Lane Cove Club and commenced running the ground floor food within seagulls. The additional costs allowed us to maintain member benefits whilst preparing to reposition both areas for future growth. The total comprehensive income for the year totalled over $2.2 million. This was achieved after returning close to $1.25 million to the community in direct financial support. Additionally, we contributed over $380,000 of in-kind support funding. This is another strong result which strengthens our ability to invest back into member facilities and our community, whilst underpinning the ongoing sustainability of the NORTHS Group. Training and development of our staff has been a major emphasis of the Board and Management in the 2017 year. We want our staff to be able to develop professionally and personally whilst in our employ. Their training has not only focussed on traditional areas of employee safety, work skills and customer service but teaching other skills such as member engagement, problem solving and cross selling. We believe these skills not only enhance our membersâ&#x20AC;&#x2122; experiences, but equip our staff with the resilience to deal with change into the future.

46


PRESIDENT AND CEO’S cont... 2018 FOCUS NORTHS We are currently finalising the refurbishment of the bar lounge space to reposition an old room into a vibrant over 18’s area. We continue to refine plans for the redevelopment of several key areas at NORTHS. Those with Development Application approval include the following: • An additional lift that will stop at all levels of the Club. This will include the three levels of car park. The arrival experience will present similar to a “Westfield” glass door car park entrance with lift and coincides with the refurbishment of the stairwell. • A modern makeover of the gaming floor which will include refurbished toilets, dispense bar and cashier areas.

THE GREENS In last year’s report we indicated our successful drawn out fight against council would result in the immediate commencement of works to remove external temporary cool rooms, return the use of the car park and add other improvements on infrastructure. Regrettably council appealed the decision in the Land and Environment Court which delayed our planned works and we have only just been permitted to proceed. We anticipate we will have completed the works for additional toilet facilities at the northern end, added a fully equipped outdoor bar, staff facilities and additional car parking space prior to June 2018. We have also received approval to replace the marquee between the two full size greens. Unfortunately, our request for four fixed umbrellas was met with an approval for three.

SEAGULLS CLUB Major works have commenced on the redevelopment of our ground floor area which includes the indoor and outdoor gaming rooms, the TAB and lounge area. With the first stage scheduled to be complete before August we are committed to keeping disruption to a minimum but appreciate there will be impact on the current lounge space during this time in order to complete works as soon as possible.

THE LANE COVE CLUB What an opportunity Lane Cove has before it! There are many projects underway in the Lane Cove community that the timing for our refurbishment works could not be better. Members can now be reassured our promise to upgrade the Club facilities is a firm commitment. Getting council approval has taken some time, however we know the result will be a much better outcome for members and residents of Lane Cove. At the time of printing, the renovation is well underway and following the two-month closure of the Club, members will have the opportunity to return to a wonderful new food and beverage experience that will grow our membership.

NORTHS FITNESS AND REVOLUTION HEALTH AND FITNESS A big thank you to all our members who have made a firm commitment toward improving their health within our fully equipped fitness centres. We continue to invest in the latest technologies and in finding the best people to work with you in achieving fitness goals through one of our 130 classes a week or on the gym floor. Throughout the year as a leadership team we progressed our strategic planning with a long term lens. Having committed in 2016 to clarifying the “why” across the NORTHS Group, we have set about strategies to ensure we maintain our relevance to the community. How we support our communities will continue to sit at the heart of the efforts of staff, management and the Board. Additionally, we are proud to sponsor the North Sydney Bears Inaugural team into the Harvey Norman NSW Women’s premiership 2018 competition and we wish them every success. We wish to thank all the wonderful people that make up our 340+ employees and Board of 8 Directors. We are so proud of all the hard work they put into providing a truly unique difference between our venues and any others.

Mark Holman President NORTHS Group

Luke Simmons Chief Executive Officer NORTHS Group

47


DIRECTORS’ REPORT Your directors present their report on North Sydney Leagues Club Limited (“the company”) for the financial year ended 31 December 2017.

DIRECTORS The following table sets out the Directors of the company at any time during or since year end of the financial year and the number of board meetings held and attended by each director. CLUB POSITION

NAME OF DIRECTOR

TOTAL NUMBER OF DIRECTORS’ MEETINGS ATTENDED

TOTAL NUMBER OF DIRECTORS’ MEETINGS WHILST IN OFFICE

Mark Holman

President

12

13

Tony Salier

Vice President

12

13

Warren Morris

Director

13

13

Frere Thompson

Director

13

13

Terence Keen

Director

13

13

Perry Lopez

Director

11

13

Peter Wood

Director

12

13

Wayne G Bennett

Director

13

13

Number of Directors meetings

13

INFORMATION ON DIRECTORS NAME OF DIRECTOR

Mark Holman

Tony Salier

Warren Morris

48

QUALIFICATIONS

EXPERIENCE

Chartered Accountant

- President of North Sydney Leagues Club Ltd since December 2010 - Vice-President of North Sydney Leagues Club Ltd from May 2008 to December 2010 - Director of North Sydney Leagues Club Ltd since May 2006 - Director of Carlson Hotels Asia Pacific Holdings Pty Ltd, which operates the Radisson chain of hotels throughout Australia - Member of the Audit Committee - Member of the Risk Committee

Lawyer

- Vice-President of North Sydney Leagues Club Ltd since December 2010 - Director of North Sydney Leagues Club Ltd since May 2000 - Director of private companies, and trustee of charitable foundations and estates, with combined assets well in excess of $100 million - Chair of the Audit Committee - Chair of the Risk Committee - Life member of North Sydney District Rugby League Football Club

Retired Customs Broker

- Vice-President of North Sydney Leagues Club Ltd from May 2000 to 2008 - Director of North Sydney Leagues Club Ltd since May 1987 - Life Member of North Sydney Leagues Club Ltd - Secretary of the Sports Council - Delegate and Patron of Metropolitan Leagues Sports Council - Patron of the Bridge, Indoor Bowls, Camera, Joggers’, Snooker, Squash, Swimming and Tennis Clubs - Co-Patron of the Lawn Bowls Clubs - Delegate to Leagues Clubs Australia - Member of the Audit Committee


DIRECTORS’ REPORT cont... INFORMATION ON DIRECTORS NAME OF DIRECTOR

QUALIFICATIONS

EXPERIENCE

Fred Thompson

Retired Painter

- Director of North Sydney Leagues Club Ltd since November 2001 - Director of North Sydney District Rugby League Football Club Ltd - Life Member of North Sydney Leagues Club Ltd - Life Member of North Sydney Junior Rugby League - Life Member of North Sydney District Rugby League Football Club Ltd - Life Member of NSW Rugby League - Delegate to Metropolitan Leagues Sports Council - Committeeman on North Sydney Leagues Club Sports Council - Delegate to New South Wales Rugby League - Delegate to Clubs NSW - Delegate to Leagues Clubs Australia - State Councillor of Australian Legion of Ex-Service Men and Women

Terence Keen

Certified Work Place Trainer & Assessor in Hospitality

- Director of North Sydney Leagues Club Ltd since May 2006 - QRL game day ground manager for Tweed Heads Seagulls Rugby League Football Club Ltd - SRLFC Administrator from 199-2002 - SRLFC CEO 2003, 2010-2013 - SRLFC Director 2005-2009

Perry Lopez

Retired Managing Director

- Director of North Sydney Leagues Club Ltd since January 2012 - Chairman of North Sydney Rugby League Football Club since 2012 - Director of North Sydney Rugby League Football Club since 2008

Peter Wood

Diploma Building & Construction Certified Developer of Enterprise Cert IV WHS Registered Builder NSW/ QLD

- Director of North Sydney Leagues Club Ltd since April 2014 - Construction Manager - Chair HIA (Qld) Technical committee - Life member of the Bilambil Jets JRLFC

Electronics and communications AQF Wayne G Bennett diploma level, single engine jet pilot 1980’s

- Director of North Sydney Leagues Club Ltd since January 2016 - Secretary of North Sydney Leagues Social Golf Club for in excess of 15 years - Telstra technical officer - Naval fleet air arm pilot course 81/82 - Network engineer Computer sciences Australia - Owner/manager of a data communications company 1984 to present

OPERATING RESULTS

The profit of the company for the financial year after providing for income tax amounted to $2,280,185.

SHORT TERM OBJECTIVES

Providing great clubs with a commitment to enriching our communities.

49


LONG TERM OBJECTIVES

To become the community’s social, recreational and entrepreneurial hub.

STRATEGY FOR ACHIEVING THE OBJECTIVES

The development of a Strategic Plan that focuses on: Deepening the relationship with members and our communities Improving venue yield and diversifying club operations Investing in our people Being innovative and adaptive Operating ethically

PRINCIPAL ACTIVITIES

The principal activities of the company during the course of the financial year consisted of the conduct and promotion of licensed social and sporting clubs, and the provision of sporting and recreation facilities to members of the company, including the propagation of Rugby League.

HOW THESE ACTIVITIES ASSIST IN ACHIEVING THE OBJECTIVES

The principal activities of the company contributed to achieving the objectives by providing a stable base of operations. This ensured the financial position of the company remained stable and generated funds to meet the demands of the company and maintain high levels of service to members and guests.

PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORS

Performance is assessed regularly against rolling forecasts, strategic plans and industry benchmarks using various metrics such as financial and non-financial metrics and financial analysis to measure whether strategic initiatives have been effective in achieving company short and long term objectives. A number of KPI’s are employed by the company in order to measure, monitor and hence improve the company’s performance and to achieve the company’s objectives through sound financial management.

BOARD COMMITTEES

The Board maintains two advisory committees to examine issues relating to audit and risk. The audit committee consists of Tony Salier, Warren Morris and Mark Holman. The committee meets approximately three times a year with the company auditors to review their findings and reports. The risk committee consists of Tony Salier, Mark Holman and Luke Simmons. It meets approximately 12 times a year and identifies risks faced by the NORTHS Group and makes proposals to the Board as to how to deal with them.

MEMBERS’ LIMITED LIABILITY

The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up the constitution states that each member is required to contribute a maximum of $4.00 towards meeting any outstanding obligations of the company. At 31 December 2017 the total amount that members of the company are liable to contribute if the company is wound up is $236,808.

AUDITOR’S INDEPENDENCE DECLARATION A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 45. Signed in accordance with a resolution of the Board of Directors: Director:

Mark Holman

Director: 50

Willis Salier

Dated this 23rd day of March 2018


AUDITORâ&#x20AC;&#x2122;S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF NORTH SYDNEY LEAGUES CLUB LIMITED I declare that, to the best of my knowledge and belief, during the year ended 31 December 2017 there have been:

(i) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii)

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

Maher Partners Assurance Pty Limited

Jason Maher Taren Point

Dated this 23rd day of March 2018

51


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2017 NOTE

2017 $

2016 $ 52,235,378

Revenue

2

55,213,985 55,213,985

52,235,378

Cost of sales

3

(6,522,157)

(6,064,123)

Depreciation and amortisation expenses

3

(4,094,272)

(4,364,497)

(16,832,098)

(14,923,726)

(5,003)

(203,084)

(863,674)

(989,600)

(24,624,312)

(23,329,464)

Employee benefits expenses Unrealised loss on derivatives Finance costs

3

Other expenses Profit before income tax

3

2,272,469

2,360,884

Income tax revenue / (expense)

4

7,716

116,719

2,280,185

2,477,603

Revaluation increment (decrement)

-

6,399,715

Gain on amalgamation

-

6,506,902

Other comprehensive income for the year net of tax

-

12,906,617

Total comprehensive income for the year

2,280,185

15,384,220

Total comprehensive income attributable to members of the entity

2,280,185

15,384,220

Profit for the year

Other comprehensive income after tax

The accompanying notes form part of these financial statements.

52


STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 NOTE

2017 $

2016 $

CURRENT ASSETS Cash and cash equivalents

5

3,308,650

2,455,753

Trade and other receivables

6

139,537

254,488

Inventories

7

527,896

567,105

Other current assets

8

375,539

417,951

4,351,622

3,695,297

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables

6

70,000

80,000

Financial assets

9

112,500

112,500

Property, plant and equipment

10

98,695,444

97,430,529

Intangible assets

11

673,236

673,236

Deferred tax assets

4

345,374

337,658

TOTAL NON-CURRENT ASSETS

99,896,554

98,633,923

TOTAL ASSETS

104,248,176

102,329,220

CURRENT LIABILITIES Trade and other payables

12

6,004,555

5,237,500

Financial liabilities

13

1,453,481

2,754,518

Provisions

14

1,040,967

865,049

Other current liabilities

15

443,358

701,432

8,942,361

9,558,499

TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Trade and other payables

12

1,287,253

856,984

Financial liabilities

13

17,941,936

18,001,439

Provisions

14

608,070

577,964

Deferred tax liabilities

4

1,109,491

1,109,491

Other non-current liabilities

15

176,523

322,486

21,123,273

20,868,364

30,065,634

30,426,863

74,182,542

71,902,357

TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS MEMBERS’ EQUITY Reserves

16

56,152,383

56,152,383

Retained earnings

17

18,030,159

15,749,974

74,182,542

71,902,357

TOTAL MEMBERS’ EQUITY The accompanying notes form part of these financial statements.

53


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017

Note

Retained earnings $

Balance at 1 January 2016 Other comprehensive income Movement in reserves

13,272,371

Capital Redemption Reserve $

Amalgamation Reserve

Total

$

$

43,082,634

163,132

-

56,518,137

6,399,715

-

6,506,902

12,906,617

Asset Revaluation Reserve $

16

Profit attributable to members

2,477,603

-

-

-

2,477,603

Balance at 31 December 2016

15,749,974

49,482,349

163,132

6,506,902

71,902,357

Profit attributable to members

2,280,185

-

-

-

2,280,185

Balance at 31 December 2017

18,030,159

49,482,349

163,132

6,506,902

74,182,542

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $

2016 $

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to suppliers and employees Interest received Finance costs paid

54,705,220

52,574,802

(46,273,603)

(43,866,028)

14,266

10,737

(758,060)

(873,727)

7,687,823

7,845,784

-

101,750

Payments for property, plant and equipment

(5,363,769)

(4,553,487)

Net cash used in investing activities

(5,363,769)

(4,451,737)

991,736

727,731

Repayment of borrowings

(2,461,634)

(3,069,556)

Net cash used in financing activities

(1,469,898)

(2,341,825)

Net increase (decrease) in cash held

854,156

1,052,222

Net cash provided by operating activities

23

CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of intangibles

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings

Cash at beginning of financial year Cash at end of financial year

54

23

2,454,494

1,402,272

3,308,650

2,454,494


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial statements cover North Sydney Leagues Club Limited (the company) as an individual entity. North Sydney Leagues Club Limited is a company limited by guarantee, incorporated and domiciled in Australia.

BASIS OF PREPARATION The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. 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 financial statements are presented in Australian dollars, which is the companyâ&#x20AC;&#x2122;s functional currency, and have been rounded to the nearest dollar. 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 were authorised for issue on 23 March 2018 by the directors of the company.

ACCOUNTING POLICIES Cash and Cash Equivalents Cash and cash equivalents comprises cash on hand, deposits held at call with financial institutions, and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

TRADE AND OTHER RECEIVABLES Trade receivables are recognised initially at the transaction price (i.e. cost) and are subsequently measured at cost less provision for impairment. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets. All other receivables are classified as non-current assets. At the end of each reporting period, the carrying amount of trade and other receivables are reviewed to determine whether there is any objective evidence that the amounts are not recoverable. If so, an impairment loss is recognised immediately in statement of comprehensive income.

INVENTORIES Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a weighted-average basis. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the reporting date and inventory is written down through an obsolescence provision if necessary.

FINANCIAL ASSETS Financial assets are initially recognised on the cost basis, including acquisition charges associated with the financial asset. The carrying amounts of financial assets are reviewed annually by the directors. The recoverable amounts are assessed from the quoted market value for shares in listed companies or the underlying net assets for other non listed corporations. The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts, unless otherwise stated.

55


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017

PROPERTY, PLANT AND EQUIPMENT Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation. PROPERTY Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less accumulated depreciation for buildings. In the periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the land and building’s carrying amount is not materially different to the fair value. Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are recognised against fair value reserves directly in equity; all other decreases are recognised in profit or loss. Any accumulated depreciation at the date of 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 Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying value of plant and equipment is greater than the estimated recoverable amount, the carrying value is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present. The cost of fixed assets constructed within the company includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

56


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 DEPRECIATION The depreciation method and useful life used for items of property, plant and equipment (excluding freehold land) reflects the pattern in which their future economic benefits are expected to be consumed by the company. Depreciation commences from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation method and useful life of assets is reviewed annually to ensure they are still appropriate. The depreciation rates used for each class of depreciable asset are: Class of Fixed Asset Buildings & Refurbishments Plant & Equipment

Depreciation Rate 2.0% - 10.0% 5.0 - 33.0%

The useful life for each class of depreciable asset are: Class of Fixed Asset Buildings & Refurbishments Plant & Equipment

Useful Life 10 - 50 Years 3.0 - 20 Years

The assetsâ&#x20AC;&#x2122; residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The directors have reviewed the useful life building and refurbishment assets and have adjusted the depreciation rates from 2.5% to 2.0%. An assetâ&#x20AC;&#x2122;s carrying amount is written down immediately to its recoverable amount if the assetâ&#x20AC;&#x2122;s carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

LEASES The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or the arrangement conveys a right to use the asset. A lease is classified at the inception date as either a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the company is classified as a finance lease. Finance leases are capitalised by recording an asset and a liability at the fair value of the leased property or, if lower, the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for that period. Leased assets are depreciated over their estimated useful lives where it is likely that the company will obtain ownership of the asset, or otherwise over the shorter of the estimated useful life and the term of the lease. Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are recognised as operating expenses in the statement of profit or loss and other comprehensive income on a straight line basis over the lease term. Lease incentives under operating leases are recognised as a liability and amortised over the lease term.

57


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017

INTANGIBLES POKER MACHINE ENTITLEMENTS Poker machine entitlements are carried at cost less accumulated impairment losses. Poker machine entitlements are not amortised as they are deemed to have an indefinite useful life. Poker machine entitlements are tested for impairment annually.

OTHER INTANGIBLES The company owns licences in certain holiday units in Fingal Bay. Licences held by the company are considered to be intangible assets with an indefinite life as there is no set term to the contractual agreement. As a result the licences are not subject to amortisation. Instead the licences are tested for impairment annually and are carried at cost less accumulated impairment losses.

TRADE AND OTHER PAYABLES Trade and other payables represent the liabilities at the end of the reporting period for goods and services received by the company that remain unpaid. Trade payables are recognised at their transaction price. Trade payables are obligations on the basis of normal credit terms.

EMPLOYEE BENEFITS Provision is made for the companyâ&#x20AC;&#x2122;s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred.

REVENUE AND OTHER INCOME Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the company and specific criteria relating to the type of revenue as noted below, has been satisfied. All revenue is stated net of the amount of goods and services tax (GST). Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.

SALE OF GOODS Revenue from the sale of goods comprises revenue earned from the provision of food, beverage and other goods to members and other patrons and is recognised at the point the goods are provided as this corresponds to the transfer of significant risks and rewards of ownership of the goods.

RENDERING OF SERVICES Revenue from rendering of services comprises revenue from gaming facilities together with other services to members and other patrons and is recognised when the services are provided.

INTEREST REVENUE Interest revenue is recognised using the effective interest rate method.

58


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017

DIVIDEND REVENUE Dividends are recognised when the right to receive payment is established.

MEMBERSHIP SUBSCRIPTIONS Membership subscriptions paid in advance are initially recognised as a liability. Revenue is recognised on a straight line basis over the membership period, based on the membership category for which subscriptions have been received.

SALE OF PROPERTY, PLANT AND EQUIPMENT The gain or loss on disposal of property, plant and equipment is calculated as the difference between the carrying amount of the asset at the time of disposal and the net proceeds on disposal (including incidental costs) and is recognised as other income or other expenses at the date control of the asset passes to the buyer.

OTHER INCOME Other income is recognised on an accruals basis when the company is entitled to it.

BORROWING COSTS All borrowing costs are recognised as an expense in the period in which they are incurred.

BUSINESS COMBINATIONS Club amalgamations are accounted for in accordance with AASB 3 Business Combinations using the acquisition method, with transaction costs directly attributable to the amalgamation forming part of the acquisition costs. This method involves recognising the fair values of the identifiable assets acquired and liabilities assumed. The difference between the above items represents gain on amalgamation in other comprehensive income.

GOODS AND SERVICES 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 Tax 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 the expense. Receivables and payables are shown inclusive of GST.

INCOME TAX The income tax expense for the year is the tax payable on the current yearâ&#x20AC;&#x2122;s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date. Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax assets and liabilities are recognised at the tax rates expected to apply when the assets are recovered or the liabilities are settled. Current and deferred tax is recognised as an expense in the income statement except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity. Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available, against which deductible temporary differences can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation, and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

COMPARATIVES

Comparative figures have been adjusted to conform to changes in presentation for the current financial year. 59


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017

2

2017 $

2016 $

48,318,764

46,222,107

14,266

10,737

Rendering of services

4,810,246

4,168,412

Other revenue

2,070,709

1,834,122

Total revenue

55,213,985

52,235,378

6,522,157

6,064,123

863,674

989,600

REVENUE Operating activities Sale of goods and Gaming revenue Interest Received

3 PROFIT Expenses

Cost of sales Finance Costs Interest Paid Depreciation of property, plant and equipment

60

Depreciation - Buildings

1,145,294

1,644,136

Depreciation - Plant & Equipment

2,948,978

2,720,361

4,094,272

4,364,497

Bad Debts Written Off

-

4,200

Total bad and doubtful debts

-

4,200


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017

4 INCOME TAX EXPENSE Statement of profit or loss and other comprehensive income

2017 $

2016 $

Current income tax Current income tax charge

-

-

Origination and reversal of temporary differences

(7,716)

(116,719)

Income tax expense/(benefit)

(7,716)

(116,719)

(7,716)

(116,719)

2,272,469

2,360,884

681,741

708,265

Income attributable to members

1,024,654

958,786

Expenses attributable to members

(954,185)

(1,050,712)

Mutuality principle

(943,742)

(1,581,985)

183,816

848,927

(7,716)

(116,719)

Tax losses

208,412

214,368

Accruals

35,725

33,314

Employee entitlements

90,136

78,875

11,101

11,101

345,374

337,658

Revaluations of property, plant and equipment

1,109,491

1,109,491

Deferred tax liabilities

1,109,491

1,109,491

Deferred tax

Income tax expense/(benefit) reported in the statement of profit or loss and other comprehensive income Reconciliation between income tax expense and prima facie tax on accounting profit Accounting profit/(loss) before income tax Tax at Australiaâ&#x20AC;&#x2122;s statutory income tax rate of 30% Adjust for tax effect of:

Other items (net) Income tax expense/(benefit) Deferred tax assets

Unrealised gains Deferred tax assets Deferred tax liabilities

61


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $

2016 $

5 CASH AND CASH EQUIVALENTS Current Cash on Hand & Cash at Bank

3,308,650

2,455,753

128,158

120,649

6 TRADE AND OTHER RECEIVABLES Current Trade Debtors Other Debtors

11,379

133,839

139,537

254,488

70,000

80,000

Stock on Hand - Bar

427,167

426,682

Stock on Hand - Other

100,729

140,423

527,896

567,105

375,539

417,951

112,500

112,500

Non-Current Loan - Tweed Heads Seagulls RLFC

7

INVENTORIES Current At cost:

8 OTHER ASSETS Current Prepayments

9 FINANCIAL ASSETS Non-Current Shares in Unlisted Companies

62


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2016 2017 $

2016 $

10 PROPERTY, PLANT AND EQUIPMENT LAND AND BUILDINGS Land and Buildings at: Independent valuation Refurbishments and Improvements at cost

85,806,724

85,806,724

4,774

-

Accumulated depreciation

(1,145,294)

-

Total Land and Buildings

84,666,204

85,806,724

32,637,244

28,908,798

(19,722,720)

(17,512,262)

12,914,524

11,396,536

1, 114, 716

227,269

1, 114, 716

227,269

PLANT AND EQUIPMENT Plant and Equipment: At cost Accumulated depreciation

Capital Work in Progress Total Plant and Equipment Total Property, Plant and Equipment

4,029,240

11,623,805

98,695,444

97,430,529

Refer to Note 13 for details of security over property, plant and equipment. VALUATION The freehold land and buildings were independently valued at 17 January 2017 by registered valuers, CBRE using a combination of valuation methods. It resulted in a valuation of Land and Building at $85,806,724.

63


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 MOVEMENTS IN CARRYING AMOUNTS Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Land & Buildings $ Balance at 1 January 2016

Plant & Equipment $

Capital Work in Progress $

74,274,214

10,339,719

Additions

704,351

Disposals

-

Additions through acquisition of entity

Total $

234,170

84,848,103

3,708,910

-

4,413,261

(90,125)

(6,901)

(97,026)

6,085,000

158,393)

-

6,243,393

Revaluation increments/(decrements)

6,387,295

-

-

6,387,295

Depreciation expense

(1,644,136)

(2,720,361)

-

(4,364,497)

85,806,724

11,396,536

227,269

97,430,529)

4,774

4,471,548

887,447

5,363,769

Balance as at 31 December 2016 Additions Disposals / transfers Depreciation expense Carrying amount at 31 December 2017

-

(4,582)

-

(4,582)

(1,145,294)

(2,948,978)

-

(4,094,272)

84,666,204

12,914,524

1,114,716

98,695,444

2017 $

2016 $

11 INTANGIBLE ASSETS Poker Machine Entitlements Licences

501,600

501,600

171,636

171,636

673,236

673,236

Poker Machine Entitlements The amount represents the fair value of poker machine entitlements acquired through amalgamation with Lane Cove Club at the date of amalgamation. Poker machine entitlements are carried at cost (being the fair value at the date of amalgamation) less accumulated impairment losses. Poker machine entitlements are not amortised as they are deemed to have an indefinite useful life. Poker machine entitlements are tested for impairment annually. Licences The amount represents the costs incurred in acquiring licences at certain holiday units in Fingal Bay. Licences held by the company are considered to be intangible assets with an indefinite life as there is no set term to the contractual agreement. As a result the licences are not subject to amortisation. Instead the licences are tested for impairment annually and are carried at cost less accumulated impairment losses.

64


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $

2016 $

Trade Creditors

2,401,549

2,026,550

Other Creditors

3,603,006

3,210,950

6,004,555

5,237,500

1,287,253

856,984

12 TRADE AND OTHER PAYABLES Current

Non-Current Other Creditors

13 BORROWINGS Current Bank Overdraft

-

1,259

Hire Purchase Liability

-

142,271

666,556

710,718

400,000

1,600,000

71,867

-

208,087

203,084

106,971

97,186

1,453,481

2,754,518

Other Secured Loans Commercial Loan Facility Finance Lease Liability Derivatives - Interest Rate Swaps Hunter Premium Funding

Non-Current Finance Lease Liability Commercial Loan Facility Other Secured Loans

236,986

-

17,200,000

17,200,000

504,950

801,439

17,941,936

18,001,439

Security The security for the commercial bill facility is: Registered first mortgage over: - 12 Abbott Street, Cammeray known as North Sydney Leagues Club, - 50 Ridge Street, known as The Greens North Sydney - Gollan Drive, Tweed Heads West known as Seagulls Club - 1 Birdwood Avenue, Lane Cove known as Lane Cove Club - First Registered Company Charge Number 1190698 (Mortgage Debenture) over all the assets and undertakings of the club. 65


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $

2016 $

14 PROVISIONS Provision for Annual Leave Provision for Long Service Leave

1,040,967

865,049

608,070

577,964

1,649,037

1,443,013

1,040,967

865,049

608,070

577,964

1,649,037

1,443,013

Income In Advance

129,619

345,670

Subscriptions In Advance

313,739

355,762

443,358

701,432

Income in Advance

22,702

159,801

Subscriptions In Advance

153,821

162,685

176,523

322,486

49,482,349

43,082,634

-

6,399,715

49,482,349

49,482,349

163,132

163,132

Total provisions Analysis of Total Provisions Current Non-current

15 OTHER LIABILITIES Current

Non Current

16 RESERVES Asset Revaluation Reserve Opening Balance for the year Revaluation increment (decrement) Capital Redemption Reserve Opening Balance for the year Amalgamation Reserve Opening Balance for the year Gain on Amalgamation

6,506,902

-

-

6,506,902

56,152,383

56,152,383

15,749,974

13,272,371

2,280,185

2,477,603

18,030,159

15,749,974

17 RETAINED EARNINGS Retained earnings at the beginning of the financial year Net profit attributable to members of the company Retained earnings at the end of the financial year 66


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $

2016 $

18 CAPITAL AND LEASING COMMITMENTS Finance Lease/Other Secured Loan Commitments: Not later than one year

930,325

927,817

Later than one year but not later than two years

443,411

593,177

Later than two years but not later than five years

369,399

245,545

Minimum lease payments

1,743,135

1,766,539

Less future finance charges

(155,805)

(112,111)

Total finance lease / other secured loan liability

1,587,330

1,654,428

1,487,431

1,212,494

19 CONTINGENT LIABILITIES The directors are of the opinion that there are no contingent liabilities.

20 KEY MANAGEMENT PERSONNEL The totals of remuneration paid to key management personnel (KMP) of the company during the year are as follows: Key management personnel compensation

21 RELATED PARTY TRANSACTIONS No director has entered into a material contract with the company since the end of the previous financial year and there were no material contracts involving directorsâ&#x20AC;&#x2122; interests existing at year end.

22 AMALGAMATION On 2 December 2016, North Sydney Leagues Club Limited acquired all assets and liabilities of Lane Cove Club Limited for nil consideration. The fair value of the assets and liabilities acquired as at the date of acquisition were: Assets Cash and cash equivalents

10,344

Receivables and other assets

42,352

Property, plant and equipment Intangible assets Total assets

6,243,393 501,600 6,797,689

67


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017 2017 $

2016 $

Liabilities Payables and other liabilities

104,983

Provisions

177,216

Income in advance

8,588

Total liabilities

290,787

Total identifiable net assets at fair value

6,506,902

The company has made a retrospective restatement of the amalgamation note to account for the fair value of poker machine entitlements acquired at the date of amalgamation. This resulted in increases to intangible assets and the amalgamation reserve, as well as the gain on amalgamation in other comprehensive income. Comparative figures have been adjusted to conform to the change in presentation.

23 CASH FLOW INFORMATION a)

Reconciliation of Cash

Cash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts: Cash on Hand & Cash at Bank Bank Overdraft

b)

2,455,753

-

(1,259)

3,308,650

2,454,494

2,280,185

2,477,603

Reconciliation of net cash provided by operating activities to profit after income tax Operating profit (loss) after income tax adjustments: (Profit) / Loss on sale of non-current assets Depreciation Unrealised gain on derivatives Financing flows in operating profits Profit on sale of intangible assets

4,582

-

4,094,272

4,364,497

5,003

203,084

105,614

115,872

-

(101,750)

(Increase) Decrease in inventories

39,209

58,112

(Increase) Decrease in receivables

124,951

23,619

(Increase) Decrease in prepayments

42,412

60,208

(Increase) Decrease in deferred tax assets

(7,716)

(116,719)

Increase (Decrease) in trade creditors

374,999

(1,620,060)

Increase (Decrease) in other creditors

822,325

1,750,187

Increase (Decrease) in provisions

206,024

191,641

Increase (Decrease) in tax liabilities Increase (Decrease) in other liabilities

68

3,308,650

-

(12,420)

(404,037)

451,910

7,687,823

7,845,784


NOTES TO THE FINANCIAL STATEMENTS cont... FOR THE YEAR ENDED 31 DECEMBER 2017

24 COMPANY DETAILS The registered office of the company is: 12 Abbott Street, Cammeray, NSW 2062 The principal place of business is: 12 Abbott Street, Cammeray, NSW 2062 The principal activities of the company are that of a Registered Club.

25 DISCLOSURE REQUIREMENTS UNDER SECTION 41J OF THE REGISTERED CLUBS ACT Core and Non Core Property Section 41J of the Act defines core property as meaning any real property owned or occupied by the company that comprises:(a) the defined premises of the company, or (b) any facility provided by the company for use of its members and their guestsâ&#x20AC;&#x2122; or (c) any other property declared, by resolution passed by a majority of the members present at a general meeting of the ordinary members of the company, not to be core property of the company. Non-core property is defined as meaning any real property owned or occupied by the company that is not core property. Core property of the company consists of the following premises: - North Sydney Leagues Club at 12 Abbott Street, Cammeray, NSW 2062 - The Greens North Sydney at 50 Ridge Street, North Sydney, NSW 2060 - Lane Cove Club at 1 Birdwood Avenue, Lane Cove, NSW 2066 - Sections of Seagulls Club at Gollan Drive, Tweed Heads West, NSW 2486 The remaining sections of Seagulls Club as voted by members by ordinary resolution at the Annual General Meetings on 25th May 2009 and 14th May 2012 are considered non-core property.

69


DIRECTORSâ&#x20AC;&#x2122; DECLARATION The directors of the company declare that: 1. The financial statements and notes, as set out on pages 52-69, are in accordance with the Corporations Act 2001:

(a)

Give a true and fair view of the financial position as at 31 December 2017 and of its performance as represented by the results of its operations and its cash flows for the year ended on that date of the company.

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and Corporations Regulations 2001. 2. In the directorsâ&#x20AC;&#x2122; 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. This declaration is made in accordance with a resolution of the directors.

Director:

Mark Holman

Director:

Willis Salier

Dated this 23rd day of March 2018

70


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NORTH SYDNEY LEAGUES CLUB LIMITED

OPINION We have audited the accompanying financial report of North Sydney Leagues Club Limited (the company), which comprises the statement of financial position as at 31 December 2017, and 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 comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion, the accompanying financial report of the company is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the company’s financial position as at 31 December 2017 and of its financial performance for the year then ended; and

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001.

BASIS FOR OPINION We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. Our responsibilities under those standards are further described in the Auditor’s Responsibility section of our report. We are independent of the company in accordance with 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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

71


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NORTH SYDNEY LEAGUES CLUB LIMITED

DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL REPORT The directors of the company are responsible for the preparation of the financial report and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and Australian Accounting Standards - Reduced Disclosure Requirements and is appropriate to meet the needs of the members. The directors’ responsibility also includes such internal control as the directors determine necessary to enable the preparation of a financial report that 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 RESPONSIBILITY Our responsibility is to express an opinion on the financial report based on our audit. 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 this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. 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.

72


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NORTH SYDNEY LEAGUES CLUB LIMITED

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the company to express an opinion on the financial report. 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. Maher Partners Assurance Pty Limited

Jason Maher Taren Point Dated this 23rd day of March 2018

73


NOTES

74


75


12 Abbott Street. Cammeray NSW 2062 Tel | 02 9245 3000 Fax | 02 9955 1543 Email | member.info@norths.com.au Web | norths.com.au ABN 92 000 147 544

76

Norths Group Annual Report 2017  
Norths Group Annual Report 2017