The FY24 Annual Report is a Special Consolidated Report written and produced by Donna Bates, OnPoint! Strategy for the Owners of the Strata Plan 11104.
Contributions to this report were made by:
Mr Jamie Trawinski - Chairperson - Strata Council of Owners & MIS Board of Directors
Mrs Kerry Lee - Company Secretary - Strata Council of Owners & MIS Board of Directors
Mrs Donna Bates - Strategic Planning Consultant - CEO - OnPoint! Strategy
This is a controlled document and holds privileged company information regarding the audited financial position and strategic direction of the Atrium Group and as such cannot be forwarded or re-distributed outside of the Owner Group without the express permission of the Authors.
This report has been produced for the Owners of SP11104 and does not constitute advice and is of a general nature only. It is the individual owner’s responsibility to seek investment advice from a suitably qualified professional.
Vision - What we are aiming to achieve
Our Vision is to help families create experiences that exceed their expectations and make memories they will treasure for a lifetime, whilst creating profitable returns for owners.
Mission - How we will do that
Our Mission is to be the first choice for accommodation in the Peel Region for corporate, families, and seniors, as well as a bespoke function specialist. We aim to create a profit for the hotel to be disbursed back to owners. We will do this through good governance, strategically directed cost rationalisation, non-tourism-related growth strategies, excellent team training and development, well-managed strata, and agility when dealing with industry-related challenges.
Values - What we believe
We have a passionate team of people from our Owners, Council of Owners and Hotel Board, 1834 Management team, and staff who are dedicated to ensuring that our values are not only maintained but lived out every day when providing excellent hospitality in service to our guests.
FAMILY
We reflect our community and embrace the history and tradition of our role in the Peel region.
HOSPITALITY
We believe in providing hospitality through both our attitudes and actions towards our guests, members & owners.
TEAMWORK
We ensure that every staff member, management team member, Board Member, and Owner supports and encourages each other.
INTEGRITY
We believe in acting with the highest of integrity.
EXCELLENCE
We perform at the highest levels of service, language, behaviour, and appearance
2.1
1 CHAIRPERSON'S REPORT
1 JULY 2023 TO 30 JUNE 2024
1.1
FY24 Review
Welcome to the Atrium Annual Report for the 2024 Financial Year. I am proud to announce that 2024 has seen our most successful results in the last 17 years, with more to come.
Thank you to all owners who attended our successful Annual General Meeting (AGM) in November 2023 and for your continued support. 1834 Hotels Management had its first full 12 months of operational results with the Atrium Hotel (FY24). During this time, we were able to analyse results against the previous 12 months (which included 8 months owner-managed) with 4 months of management by 1834 Hotels implementing new systems from February 2023.
This financial year has been both exciting and challenging, with 1834 Hotels striving to achieve the required strategic objectives as set out in our Strategic Plan. I am delighted to share that we have achieved our strategic outcomes for FY24. Our General Manager, Kristy Coates is an asset to our company. She is employed by the Atrium Hotel, but works under the management of 1834 Hotels, and we are delighted with Kristy’s drive and commitment to achieve our goals and has flourished in the process.
. We are grateful for our entire team, the Council of Owners, Consultants, Staff and our amazing, supportive owner group, we’re excited to see the positive changes happening in our companies.
It's encouraging to see the Owner’s loans paid out (for those who have provided their payment details), and achieving our deadline to pay out all the old historical debt as a priority. As promised, cash distributions have begun flowing back into the hands of our valued owner group from October 2024.
Thank you to Kerry Lee, our Company Secretary, Donna Bates, our Strategic Planning & Governance Consultant, Jake Kneebone for Strata Management and Andrew Bullock and the entire team from 1834 Hotels who have been consistent and unfailing in their efforts creating the next evolution of growth.
1 CHAIRPERSON'S REPORT
It's very exciting to see things coming to fruition, especially the debt payout by the end of FY24 as promised, owner distributions being paid (the first time in over a decade) and achieving our milestones in our Strategic Plan, along with the recommendations of the Management Modality Project being delivered in its entirety.
To you all, may you have a safe and Happy Christmas and New Year. If you would like to discuss anything in this report, please do not hesitate to contact us directly.
Yours sincerely
Jamie Trawinski Chairperson - Council of Owners Director - Atrium Hotel Mandurah
ATRIUM GROUP COMPANY REPORTS
2.1 HOTEL REPORT - 1834 HOTELS
1 JULY 2023 TO 30 JUNE 2024
We are delighted to share the pleasing uplift in trade that Atrium Hotel has experienced over the past year. This strong performance is a testament to the onsite dedicated team's efforts and the strategic initiatives that have been implemented. The positive trends in our key financial metrics and performance indicators are particularly encouraging, as they not only reflect our current success but also provide a solid foundation for future growth.
Looking ahead, we are confident that the strong base we have established will support continued improvements and growth. The onsite team’s commitment to excellence and customer satisfaction remains unwavering as we set our sights on achieving even greater heights in the coming year. Of note I would like to thank Kristy Coates the Atrium General Manager – her work to achieve the results we have in the last 12 months has been extremely important to the success of the Atrium.
Occupancy and Revenue Per Available Room (RevPAR)
Occupancy: The full year occupancy was 71.7%, which exceeded both the budgeted 60.1% and last year’s 50.8%. This increase in occupancy positively impacted revenue.
RevPAR: Improved significantly, reaching $131.59 for the year, well above both the budgeted $100.36 and last year's $81.90. This reflects better room utilisation and pricing strategies.
Average Daily Rate (ADR): The full-year ADR was $183.66, surpassing last year’s ADR of $161.26. While slightly below budget, this still indicates improved pricing compared to previous periods, reflecting a shift toward higher room rates.
Total Operating Revenue: Full-year revenue reached approximately $6.28 million, exceeding the budget by $1.42 million and last year’s revenue by $1.79 million. Accommodation was the largest contributor, with additional revenue from room hire and beverages also showing growth.
Gross Operating Profit (GOP): The hotel achieved a full-year GOP of $2.55 million, significantly above both the budget and last year’s figures. GOP as a percentage of total operating revenue increased to 40.5%, reflecting efficient cost management and operational improvements.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): Full-year EBITDA was recorded at $1.78 million, which is an impressive improvement of $787,585 over budget. This reflects a 28.3% EBITDA margin, showing strong cost controls and effective revenue management.
2.1 HOTEL REPORT - 1834 HOTELS cont.
1 FEBRUARY 2023 TO 30 JUNE 2024
Departmental Performance
Rooms Department: The rooms department was a strong performer, achieving a departmental profit margin of 65.2%. Total rooms revenue exceeded budget by over $1 million, primarily due to higher-than-expected occupancy rates and RevPAR growth. Of note this year has been the ongoing focus of increasing distribution channels for the hotel. Historically it was quite reliant on limited channels, however we have actively moved that distribution network. Below is the chart of distribution for the full year showing a very healthy distribution spread.
Chart 1 shows:
The Global Distribution System whilst only in its infancy produced over $70k in revenue for the year – this is growing already into the new financial year.
Direct property website bookings were more than $650k for the year and other direct business was more than $1.4 million in revenue for the year. Particularly important as these are commission-free and very good for profitability versus OTAs (online travel agents) where much of the historical booking traction had been achieved. OTAs still provided a very important revenue source with more than $2.1 million coming from booking.com alone.
Food and Beverage (F&B) Department: F&B faced challenges, recording a low-profit margin of 1.6%. Both food and beverage revenue were below budget, with food showing a deficit of approximately $272,000. Although beverage revenue exceeded budget, costs were high, which reduced profitability. This is an area that will have a focus for improvement in the current financial year.
Chart 1
2.1 HOTEL REPORT - 1834 HOTELS cont.
1 FEBRUARY 2023 TO 30 JUNE 2024
Cost Control and Expense
Management
Employment Expenses: Total employment expenses for full-year were $1.99 million, slightly over budget but lower as a percentage of operating revenue compared to last year. This improvement reflects better management of staffing costs in line with increased revenue.
Undistributed Expenses: Expenses in categories such as utilities and maintenance were generally within budget. Property operations and maintenance were well-controlled, with overall expenses coming in under budget.
Strategic Insights
Revenue Growth through Higher Occupancy and RevPAR: The Atrium Hotel’s strategy to increase occupancy and optimize room rates through increased distribution options has resulted in strong revenue growth. This approach has significantly improved the hotel’s financial standing compared to last year.
F&B Strategy: With F&B profits under pressure industry-wide, revisiting pricing, procurement, and menu optimisation has helped the department improve its profit margins. This is further being driven by a focus on conference and function trade into the current financial year.
Cost Control Measures: Effective cost management, particularly in employment, has played a crucial role in achieving higher profitability. Continuation of these efforts, especially in areas with high seasonal demand, could further enhance financial stability.
Overall Financial Health & Financial Year
Atrium Hotel’s 2024 full-year results demonstrate positive growth in both revenue and profitability metrics, with robust occupancy rates driving financial success. This has also delivered on the modality project recommendations implemented by Donna Bates of OnPoint! Strategy and the Board - Jamie Trawinski & Kerry-Anne Lee. We are looking forward to a strong year of trade with some healthy owner cash returns projected into the 2025 financial year.
Andrew Bullock CEO - 1834 Hotel Management
2.2 STRATA MANAGEMENT REPORT
1 JULY 2023 TO 30 JUNE 2024
Strata levies were maintained at a reduced level in FY24, which is testimony to the work that had been completed in FY21-FY23. The building is being well maintained by the hotel management maintenance team who are utilising state of the art applications to manage the compliance of WHS requirements.
The Council of Owners and Strata Manager worked through many of the building maintenance and projects for the Strata Company in FY24. Thank you again to Councillor, Elizabeth Zabrevski for her on-going input and liaison with engineers, building advisors, suppliers and Strategist, Donna Bates for her liaison support with the project manager and Structural Engineer (NRM) for working through the issues that presented themselves in FY24, with the Strata Company.
PROJECTS COMPLETED IN 2024:
A detailed structural report was undertaken by NRM Structural Engineering Consultants along with several other project assessments to update the 10-year maintenance plan: Fire Safety and System Upgrades in line with agreed DFES through Scavenger Fire Safety Services. An updated safety report was completed during this period. Work is continuing for this project on an on-going basis.
Asbestos Risk Mitigation and Remediation: Asbestos Fire Doors are continuing to be replaced as per the replacement schedule.
Water Ingress Issue (Basement & Roof Leaks):
Phase 1: Basement water leak remediation plan (Peppers): Investigated by hydrologists, plumbers, roof plumbers and structural engineers in FY23-4 who collaboratively identified the necessary issues and best solution to deal with this problem proactively. A remediation and repair plan was identified under special projects for 2024, and work commenced in September 2024 to allow this area to be reopened. This was approved in the FY24 budget at the Strata AGM.
Phase 2: Roof works - the exterior roof and parapets + Internal Ceiling & Acoustic
Panelling:
As noted in FY23, the external roof project and parapets were inspected by NRM Consultants, PRC Construction and the repair work completed; Storm damage to the external roof in 2024, was fixed through insurance, along with the subsequent internal water damage to the rooms, meant that these rooms were able to be refurbished through the same insurance claim.
Internal ceiling acoustic panels and debris capture netting was inspected by Skywalker. This project was deferred due to the cost and complex nature of the solution.
2.2 STRATA REPORT cont/
1 JULY 2023 TO 30 JUNE 2024
Roof Leaks due to Optus Tower: cracks have been appearing around the towers where they are attached to the building and have caused water ingress issues. Warranty and Repair Inspections have taken place by the Optus maintenance company who ensured that a repair team visited the Atrium to assess the damage and is currently fixing the issues.
Property Maintenance: a high level of building and property maintenance has been attended to reducing complaints, including on-going pothole fixes for the carpark area. Into the future, it is recommended that the entirety of the carpark be regraded and re-surfaced.
Move of pool & spa heater and ventilation to pump room
- This project is due for completion at the end of November/December 2024. (FY24 Budget)
WORKS TO BE COMPLETED
As in all Strata projects the ongoing maintenance or work, health and safety priorities are being managed on an ongoing basis, and are currently compliant.
Changerooms to the South side of the pool area (DEFERRED)
- Deferred due to cost and other facilities available near pool. Due to the damage to the changerooms and old saunas, an inspection was undertaken by the structural engineer, and maintenance team. Quotes were collected and presented to the Council of Owners, and 1834 Hotels. The hotel management team advised that there was no real requirement to refurbish the changerooms at this stage due to the significant cost. This project was deferred to FY25.
Laundry (1834 Hotels Project) Install - November 2024
Reducing after-hours break-ins to the laundry and manual handling, new security was installed for this area; 3 new washers and 3 new dryers via Dependable Laundry Solutions for installation in the guest laundry in November 2024; These are on a 25% commission with EFT payment facilities, 1834 will monitor the revenue stream and adjust pricing accordingly, if required.
2.3 KEY RESULT AREAS ACROSS GROUP
1July to 30 June 2024 [Results noted in financials & strategic plan results]
Governance - Executive Committee (Council of Owners)
Oversight & Strategy
Building Maintenance
OH&S including Fire Safety, Strata Maintenance
Key result areas across the group were identified as outlined in Diagram 1 above. At the heart of everything absolute, consistent governance and adherence to the strategic plan at all times generates results. This governance must be maintained continuously for the plans to work and the activity currently being undertaken to be fruitful.
STRATA GOALS:
Ensure the strata company is well governed and the strata manager ensures the hotel manager can operate 'unhindered'.
Ensure a well-kept and well-maintained building that meets or exceeds health & safety standards that doesn't pose a risk to owners, hotel management and staff, or the public in order to support the managed investment scheme to generate returns for owners.
HOTEL GOALS:
Ensure the highest possible profitability through innovative and market-leading technology and management;
Ensure the customer experience meets our goals and that the hotel is managed and presented to the highest standards as outlined in the Hotel Standards documentation; Liaise with the strata manager to ensure building and common property issues don't adversely affect hotel operations and ultimately profit;
Increase the value of the property through presentation and refurbishment; Ensure the Management team drives results, achieving returns for owners.
Diagram 1
3
ATRIUM HOTEL MANDURAH RESULTS ANALYSIS
30 JUNE 2024 (WITH FORECAST TO NOV 2024)
3 ATRIUM HOTEL MANDURAH RESULTS TO 30 JUNE 2024
3.1 HOTEL TRADING INCOME BY DEPARTMENT
FIGURE 1
Key result areas across the group were identified as outlined in Figure 1 above. This summary demonstrates the consistent and considerable growth since late FY21, culminating with the huge 41% growth from FY24 over FY23, representing a significant 145% increase when compared with FY17.
The green dotted line which can be seen in Figure 2 above, shows the implementation of the new strategic plan and the successful implementation of initiatives as voted in by owners at the subsequent Extraordinary and Annual General Meetings. The green arrow pointing from FY21 to FY24 indicates the significant growth trajectory for the hotel, growing exponentially from FY23 to FY24 with accommodation revenue exceeding expectations over this period. [Further Analysis can be seen on Pages 5 through 7]
FIGURE 2
3.2 HOTEL OCCUPANCY ANALYSIS
Figure 3 demonstrates the hotel's occupancy has continued on its upward trajectory as reported in the 1834 Hotels report. As seen in the graph in Figure 4 above, analysis of the last 8 years has indicated a consistently higher occupancy up to a high in January 2024 of 81.99%. The red line indicates the start of the Strategic Planning project implementation by OnPoint! Strategy. With the implementation of sophisticated pricing systems utilising marketdriven algorithms we have seen an increase in the bookings and access to the Global Distribution Systems and networks of new customers through the 1834 Hotels networks. [Please see more analysis of this in the 1834 Hotel Management Report on Page 9.]. Figure 4 below demonstrates the significant upswing in Revenue per available room (REVPAR) to an annual average for FY24 at $131.59 [See 1834 Hotel Report pg5]. In this same graph, a similar upswing has been delivered for the Average Daily Rate (ADR) [See 1834 Hotels Report pg5]. The trendline for both steepens post-1834 hotel management takeover which can be seen from July 2023 onwards.
FIGURE 3
FIGURE 4
3 ATRIUM HOTEL MANDURAH RESULTS TO 30 JUNE 2024
3.3 HOTEL 8-YEAR PROFIT & LOSS COMPARISON TO 30 JUNE 2024 AND FY25 YEAR TO DATE (NOVEMBER 2024)
Figure 5 identifies the profit comparison year on year from 2017 - 2024 and a budget forecast for FY25.
The 30 June 2024 result of +$1,631,623 was an incredible result, with distributions paid to the Body Corporate as a Special Levy on behalf of owners to pay the historical debt, and finalise the Modality Management Project recommendations, particularly with the move away from being an Owner Managed site.
The hotel is currently sitting at October 2024 net profit of $511K which is up $159K on same time year and is very slightly behind budget by $37K. November is tracking to be in line with last year. We are forecasting achieving budget for the balance of the 2025 year. The FY25 end of year profit is projected to be $2,132,000 and once realised, will be an incredible result for the hotel/Managed Investment Scheme.
**Owners are reminded that now the Managed Investment Scheme is delivering profits, and the Management Modality Project debt repayment schedule is complete, profits will be distributed direct to owners as quarterly cash deposits into owner-nominated bank accounts. It is encumbant on owners to seek their own independent tax advice.**
FIGURE 5
3 ATRIUM HOTEL MANDURAH RESULTS TO 30 JUNE 2024
3.4 REVPAR AND ADR COMPARISON 8-YEARS TO 30 JUNE 2024
FIGURE 6
Figure 6 shows the comparison to historical figures, the Average Daily Rate (ADR) and the Revenue per available room (REVPAR) in the FY24 year, delivering some of the strongest and most consistent increases of recent years. [Please see the 1834 Hotel Reports Pages 5-7].
3.5 MIS HEALTH - OWNER DISTRIBUTIONS HISTORICAL & FORECAST TO FY25
Following on from actions taken in FY21-23, a key strategic objective for FY24 was the repayment of the Lannock Loan debt and delivery of quarterly cash distributions to owners. This began in October 2024, and it is an extremely positive position to see the forecast for the FY25 year, at $1.77M or $272 per Unit Entitlement, as shown below in Figure 7.
7
FIGURE
4
CORPORATE STRATEGIC DIRECTION STRATEGIC PLAN (2021-2025)
4.1 CORPORATE STRATEGIC UPDATE (FY21 - FY25)
PROJECT PHASE 1-2
CRISIS CONTAINMENT
FOUNDATIONS
11 Jan 21 - 30 June 21
Project Illumination/EGM
90 days crisis management and Hotel Operations res-
structure
Corporate Strategic Plan
Robust Governance
Structure & Reporting
PROJECT PHASE 3
REINVIGORATE
Transition => Profitability
1 July 21 - 30 June 22
2021 AGM's
Companies separated
Accounting separated
On-going review & reporting
Hotel Mgt Modality Project
Gap Analysis
PHASE 1 (This report)
ACCELERATE
1 July 22 - 30 June 23
2022 AGM's
Future-proof sustainable model
Reviewed annually
Monthly reporting
Profitability Modelling
PHASE 2 (CURRENT)
GROW
1 Jul 23 - 30 June 24
2023 AGM's
Growth Activity
Profitability Modelling
Reviewed Monthly
Figure 8: months to June 30, 2023 and chart showing Accelerate and Grow Phasing of the Strategic Plan
The Corporate Strategic Plan was implemented in early 2021, and encompassed the findings and recommendations from the Crisis Containment Project Illumination with the findings of this project presented at the June 27, 2021 EGM with a resolution passed to turn the Atrium Group around and bring the companies back into profit.
The Atrium Group of Companies is now well into the Growth Phase of the Strategic Plan in FY25.
MIS returns as noted in the 2023 Annual report, and presented as part of the Management Modality Project were forecast to be in the vicinity of $153 per unit entitlement at 30 June 2024. In actuality, $1.6M or $245.89 per UE was delivered through Owner Distributions paid into the Body Corporate as a Special Levy to pay out the historical debt in the Body Corporate. [For explanation see Special Levy Income Page 21]
Update to Strategic Plan FY21-25 => FY25-FY30
In October each year, a Strategic review is undertaken by our Strategic Consultant and the Council of Owners and MIS Board. The outcome of this review is to ensure the companies are on track to deliver as per the previous years AGM’s, and to set out a planning schedule for February 2025, at which the Council of Owners and the MIS board will work with the Strategic Consultant and 1834 team to create a strategic plan to deliver results for the owner group.
Owner’s feedback will be sought in early 2025, to consolidate information and final planning to update the FY25-30 Strategic Plan.
strategy. These loans were closed out in their entirety as at 30th June 2024.
Special Levy Income (Strategic Objective Achieved
as at 30th June 2024)
A motion will be presented at the 2024 Atrium Strata AGM to ensure that the resolution is finalised in the FY24 accounting policy for special levy income. The special levy was established to facilitate the repayment of the significant historical debts (pre-2021) incurred by the Body Corporate. The repayment of these historical debts has now been fully realised. Distributed profits to owners from the unit trust will be applied against the special levy for the 2024 financial year.
Outstanding Tax & Super Debt
(Strategic Objective Achieved as at 30th June 2024)
All historical tax debt has been paid out. The hotel is awaiting the ATO to respond to the Atrium regarding a Superannuation payment query, where the hotel proved it had paid all pre-FY21 employee’s historical superannuation when it paid out all historical unpaid super in FY22 (approx $550K), but the ATO was showing a $35K discrepancy on their portal. This is with the ATO for response.
Unit Secondary Sales Notices
Owners are reminded that should they wish to sell their units they must register the sale with the Company Secretary (Kerry Lee and ESM Strata). Prospective buyers must receive a video and information on how the companies (Strata Managed Investment Scheme) work. To ensure owners understand what they have purchased, with full disclosure and explanation, the process of a Secondary Sale notice was re-introduced in FY22, and is still in place today. **Please note: Should you choose to ignore this information given to you, please be aware that this could leave the door open for future legal action against you from the purchaser.
Governance Review (Finalised October 2024)
A governance document review has been on-going since late 2021, and relevant document review and actions have been completed up to October 2024.
Work in Progress (Current)
An updated Unitholder Management Agreement is with legal and currently being drafted to finalise the deliverables as promised in governance document review from FY21-24. An updated constitution for the Atrium Hotel Mandurah Pty Ltd is also being drafted, to ensure we remain compliant with all current Corporations Act and Strata Titles Act (WA) and other relevant legislation. These will be presented to owners in early 2025.
AUDITOR'S REPORT & AUDITED FINANCIAL STATEMENTS
Audited Financials
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
ABN 87 208 464 910
Atrium Body Corporate
ABN 83 733 720 581
Atrium Hotel Mandurah Pty Ltd (Lot 1)
ABN 96 102 783 942
Unaudited Financials
Atrium Resort Hotel Group
Consolidated Accounts (Group Report)
ARSN 87 208 464 910
Financial Report - 30 June 2024
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Directors' report
30 June 2024
The directors present their report, together with the financial statements, on the unit trust for the year ended 30 June 2024.
Directors
The following persons were directors of the responsible entity during the whole of the financial year and up to the date of this report, unless otherwise stated:
Mr. Jamie Trawinski
Ms. Kerry Lee
Review of operations
The profit for the unit trust after providing for distribution to unitholders amounted to $nil (30 June 2023: $60,201).
Principal activities
The principal activity of the unit trust during the financial year was the provision of accommodation and hospitality.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the unit trust during the financial year.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 30 June 2024 that has significantly affected or may significantly affect the unit trust's operations, the results of those operations, or the unit trust's state of affairs in future financial years.
Likely developments and expected results of operations
No matter, circumstance or likely development in operations has arisen during or since the end of the financial year that has significantly affected or may significantly affect the operations of the unit trust, the results of those operations or the state of affairs of the unit trust.
Environmental regulation
The unit trust is not subject to any significant environmental regulation under Australian Commonwealth or State law.
Indemnity and insurance of directors and officers
The unit trust has indemnified all directors and management in respect of liabilities to other persons (other than the unit trust or related body corporate) that may arise from their position as directors or manager of the unit trust except where the liability arises out of conduct involving the lack of good faith.
Disclosure of the nature of the liability and the amount of the premium is prohibited by the confidentiality clause of the contract of insurance.
Proceedings on behalf of the unit trust
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the unit trust, or to intervene in any proceedings to which the unit trust is a party for the purpose of taking responsibility on behalf of the unit trust for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the unit trust with leave of the Court under section 237 of the Corporations Act 2001.
Indemnity and insurance of auditor
During the financial year, the unit trust has not paid a premium in respect of a contract to insure the auditor of the unit trust or any related entity.
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 immediately after this directors' report.
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Directors' report
30 June 2024
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Jamie Trawinski Kerry Lee Director Director
21 November 2024
Lead auditor’s independence declaration to the Directors of The Trustee for Atrium Resort Hotel - Managed Investment Scheme
As lead auditor for the audit of The Trustee for Atrium Resort Hotel - Managed Investment Scheme for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been:
i) no contraventions of the auditor independence requirements in relation to the audit, and ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Andrew Frewin Stewart Adrian Downing 61 Bull Street, Bendigo Vic 3550 Lead Auditor Dated 21 November 2024
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
For the year ended 30 June 2024
(5,663,440) (3,748,877)
The Trustee for Atrium Resort Hotel - Managed Investment Scheme Statement of financial position As at 30 June 2024
The Trustee for Atrium Resort Hotel - Managed Investment Scheme Statement of changes in equity
For the year ended 30 June 2024
The Trustee for Atrium Resort Hotel - Managed Investment Scheme Statement of
flows For the year ended 30 June 2024
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information
The financial statements cover the trust as an individual entity. The trust is a for-profit entity, established and domiciled in Australia.
Basis of preparation
These general purpose financial statements have been prepared in accordance with the Australian Accounting StandardsSimplified Disclosures issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities.
Statement of compliance
The unit trust does not have 'public accountability' as defined in AASB 1053: Application of Tiers of Australian Accounting Standards and is therefore eligible to apply the 'Tier 2' reporting framework under Australian Accounting Standards.
The financial statements comply with the recognition and measurement requirements of Australian Accounting Standards, the presentation requirements in those Standards as modified by AASB 1060: General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060) and the disclosure requirements in AASB 1060. Accordingly, the financial statements comply with Australian Accounting Standards – Simplified Disclosures.
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the unit trust's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Going concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
Income tax
The entity is structured as a unit trust and is therefore not subject to income tax under the Income Tax Assessment Act Instead, all income and gains generated by the Trust are attributed to unit holders based on their proportionate share of distributions. Each unit holder is then taxed on their share of the Trust's distributable income at their respective marginal tax rates. As a result, the Trust itself does not incur a tax liability, and no income tax expense is recognised in these financial statements.
Functional and presentation currency and rounding
The financial statements are presented in Australian dollars, which is the unit trust's functional and presentation currency, and are rounded to the nearest dollar.
Adoption of new and revised accounting standards
The unit trust has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current financial year. A description of the impact of new or amended Accounting Standards and Interpretations that have had a material impact on the unit trust during the current financial year is outlined below:
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates is mandatory for annual reporting periods beginning on or after 1 January 2023 and was adopted by the unit trust in the preparation of the 30 June 2024 financial statements.
AASB 2021-2 includes amendments to AASB 101 Presentation of Financial Statements, requiring the unit trust to disclose material accounting policy information in its financial statements rather than significant accounting policies which was required in previous financial years. Accounting policy information is material if it, when considered with other information, could reasonably be expected to influence decisions of primary users based on the financial statements.
Adoption of AASB 2021-2 has had no impact on the numerical information disclosed in the unit trust’s financial statements. Rather, adoption has required the unit trust to remove significant accounting policy information from the notes to the financial statements that is not considered material.
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
Accounting standards issued but not yet effective
An assessment of accounting standards and interpretations issued by the AASB that are not yet mandatorily applicable to the unit trust has been performed. No new or amended Accounting Standards or Interpretations that are not mandatory have been early adopted, nor are they expected to have a material impact on the unit trust in future financial years.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.
Under current legislation, the unit trust is not subject to income tax provided it attributes the entirety of its taxable income, including realised capital gains, to its unit holders.
Note 2. Critical accounting judgements, estimates and assumptions
Estimation of useful lives of assets
The unit trust determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Lease term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the unit trust's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The unit trust reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances.
Borrowing rate under AASB 16
Where necessary, lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for the corporation's leases, the corporation's incremental borrowing rate is used, being the rate that the corporation would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Notes to the financial statements 30 June 2024
Note 3. Income
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
6,279,046 4,453,452
Accounting policy for income recognition
Revenue from hotel services, such as room bookings, food, and beverages, is recognised at the point in time when the customer obtains control over the service or goods. For room bookings, revenue is recognised when the guest checks in and gains access to the room. For food and beverages, revenue is typically recognised at the point of sale or delivery, when the customer receives their order.
Note 4.
Note 5. Trade and other receivables
5,791 1,482,887 187,419
Loans - related parties
The related party loans relate to interest free loans to Atrium Body Corporate.
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Notes to the financial statements
30 June 2024
Note 6. Right-of-use assets
-
Note 7. Property, plant and equipment
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated to write off the net cost of each item of property, plant and equipment over their expected useful lives as follows:
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Notes to the financial statements
30 June 2024
Note 8. Trade and other payables
Note 9. Distribution to unitholders
Accounting policy for distribution to unitholders
At year-end, the trust has allocated the entirety of its distributable profit to unitholders. This distribution represents the full profit generated for the period and is payable in accordance with the trust deed. The distribution to unitholders is calculated based on the net profit for the period, after accounting for all relevant expenses, and is intended to be paid in full within the upcoming financial period.
Note 10. Lease liabilities
Accounting policy for lease liabilities
The above lease liability is for the commercial lease of the property, 1/65 Ormsby Terrace, Mandurah, WA 6210, between Atrium Hotel Mandurah Pty Ltd and the trust.
Note 11. Other liabilities
liabilities
Accounting policy for other liabilities
Revenue received in advance from hotel bookings represents payments collected before the guest’s stay begins. This amount is initially recorded as a liability and is recognised as revenue when the guest checks in and control of the room is transferred.
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Notes to the financial statements
30 June 2024
Note 12. Key management personnel disclosures
The following persons were directors of the unit trust during the financial year and/or up to the date of signing of these Financial Statements:
Mr. Jamie Trawinski
Ms. Kerry Lee
No director of the unit trust receives remuneration for services as a director.
There are no executives within the unit trust whose remuneration is required to be disclosed.
Note 13. Remuneration of auditors
During the financial year the following fees were paid or payable for services provided by the auditor of the unit trust:
Note 14. Related party transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
No director or related entity has entered into a material contract with the unit trust. No director's fees have been paid.
During the year ended 30 June 2024 the unit trust entered into the following transactions with related parties:
● The unit trust recorded a loan receivable to Atrium Body Corporate at 30 June 2024 equal to $1,427,780. The loan was provided on interest free terms and is repayable on demand.
Note 15. Commitments
The unit trust has no commitments contracted for which would be provided for in future reporting periods.
Note 16. Contingencies
There were no contingent liabilities or contingent assets at the date of this report.
Note 17. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the unit trust's operations, the results of those operations, or the unit trust's state of affairs in future financial years.
The Trustee for Atrium Resort Hotel - Managed Investment Scheme
Directors' declaration
30 June 2024
In the opinion of the directors of the responsible entity:
● the attached financial statements and notes comply with the Australian Accounting Standards - Simplified Disclosures.
● the attached financial statements and notes give a true and fair view of the unit trust's financial position as at 30 June 2024 and of its performance for the financial year ended on that date; and
● there are reasonable grounds to believe that the unit trust will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Jamie Trawinski Kerry Lee Director Director
21 November 2024
Independent auditor’s report to the Directors of The Trustee for Atrium Resort Hotel
- Managed Investment Scheme
Report on the audit of the financial statements
Opinion
We have audited the financial report of The Trustee for Atrium Resort Hotel - Managed Investment Scheme (the unit trust), which comprises:
▪ Statement of financial position as at 30 June 2024
▪ Statement of profit or loss and other comprehensive income for the year then ended
▪ Statement of changes in equity for the year then ended
▪ Statement of cash flows for the year then ended
▪ Notes comprising a summary of significant accounting policies and other explanatory notes
▪ The directors' declaration of the unit trust.
In our opinion, the financial report of the unit trust is in accordance with the Corporations Act 2001, including:
i. giving a true and fair view of the unit trust’s financial position as at 30 June 2024 and of its financial performance for the year ended on that date, and ii. complying with Australian Accounting Standards – Simplified Disclosures.
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independence
We are independent of the unit trust in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Directors’ responsibility for the financial report
The directors of the unit trust are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Simplified Disclosures 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 is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the unit trust’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 unit trust or cease operations, or have no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional 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 unit trust’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 unit trust’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 unit trust 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.
▪ 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.
AASB2021-2includesamendmentstoAASB101PresentationofFinancialStatements,requiringthebodycorporate to disclosematerialaccountingpolicyinformationinitsfinancialstatementsratherthansignificantaccountingpolicieswhichwas requiredinpreviousfinancialyears.Accountingpolicyinformationismaterialifit,whenconsideredwithotherinformation, couldreasonablybeexpectedtoinfluencedecisionsofprimaryusersbasedonthefinancialstatements.
The directors present their report, together with the financial statements, on the company for the year ended 30 June 2024.
Directors
The following persons were directors of the company during the whole of the financial year and up to the date of this report, unless otherwise stated:
Mr. Jamie Trawinski
Ms. Kerry Lee
Review of operations
The profit for the company after providing for income tax amounted to $17,718 (30 June 2023: $12,357).
Operations have continued to perform in line with expectations.
Principal activities
The principal activity of the company during the financial year was the provision of accommodation and hospitality.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the company during the financial year.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 30 June 2024 that has significantly affected or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years.
Likely developments and expected results of operations
No matter, circumstance or likely development in operations has arisen during or since the end of the financial year that has significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company.
Environmental regulation
The company is not subject to any significant environmental regulation under Australian Commonwealth or State law.
Indemnity and insurance of directors and officers
Disclosure of the nature of the liability and the amount of the premium is prohibited by the confidentiality clause of the contract of insurance.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the company with leave of the Court under section 237 of the Corporations Act 2001
Indemnity and insurance of auditor
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity.
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 immediately after this directors' report.
Atrium Hotel Mandurah Pty Ltd
Directors' report
30 June 2024
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Jamie Trawinski
Kerry Lee Director Director
21 November 2024
Lead auditor’s independence declaration to the Directors of Atrium Hotel Mandurah Pty Ltd
As lead auditor for the audit of Atrium Hotel Mandurah Pty Ltd for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief, there have been:
i) no contraventions of the auditor independence requirements in relation to the audit, and ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Andrew Frewin Stewart
Adrian Downing 61 Bull Street, Bendigo Vic 3550 Lead Auditor Dated 21 November 2024
For the year ended 30 June 2024
of financial position
at 30 June 2024
Hotel Mandurah Pty Ltd Statement of changes in equity For the year ended 30 June 2024 The above statement of changes in equity should be read in conjunction with the accompanying notes
(17,718)
For the year ended 30 June 2024
Atrium Hotel Mandurah Pty Ltd
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information
The financial statements cover Atrium Hotel Mandurah Pty. Ltd. as an individual entity. Atrium Hotel Mandurah Pty. Ltd. is a trustee and for-profit company, established and domiciled in Australia.
Basis of preparation
These general purpose financial statements have been prepared in accordance with the Australian Accounting StandardsSimplified Disclosures issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities.
Statement of compliance
The company does not have 'public accountability' as defined in AASB 1053: Application of Tiers of Australian Accounting Standards and is therefore eligible to apply the 'Tier 2' reporting framework under Australian Accounting Standards.
The financial statements comply with the recognition and measurement requirements of Australian Accounting Standards, the presentation requirements in those Standards as modified by AASB 1060: General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060) and the disclosure requirements in AASB 1060. Accordingly, the financial statements comply with Australian Accounting Standards – Simplified Disclosures.
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Going concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
The company incurred a deficit of $17,718 during the financial year, and recorded a working capital deficiency at 30 June 2024, with current liabilities of $608,589 exceeding its current assets of $8,254. These conditions raise doubt about the company’s ability to continue as a going concern, however it is noted the unit trust has agreed to support the company as required for the foreseeable future. As such, the financial statements have been prepared on the going concern basis.
Functional and presentation currency and rounding
The financial statements are presented in Australian dollars, which is the company's functional and presentation currency, and are rounded to the nearest dollar.
Adoption of new and revised accounting standards
The company has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current financial year. A description of the impact of new or amended Accounting Standards and Interpretations that have had a material impact on the company during the current financial year is outlined below:
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates is mandatory for annual reporting periods beginning on or after 1 January 2023 and was adopted by the company in the preparation of the 30 June 2024 financial statements.
AASB 2021-2 includes amendments to AASB 101 Presentation of Financial Statements, requiring the company to disclose material accounting policy information in its financial statements rather than significant accounting policies which was required in previous financial years. Accounting policy information is material if it, when considered with other information, could reasonably be expected to influence decisions of primary users based on the financial statements.
Adoption of AASB 2021-2 has had no impact on the numerical information disclosed in the company’s financial statements. Rather, adoption has required the company to remove significant accounting policy information from the notes to the financial statements that is not considered material.
Atrium Hotel Mandurah Pty Ltd
Notes to the financial statements
30 June 2024
Note
1. Material accounting policy information (continued)
Accounting standards issued but not yet effective
An assessment of accounting standards and interpretations issued by the AASB that are not yet mandatorily applicable to the company has been performed. No new or amended Accounting Standards or Interpretations that are not mandatory have been early adopted, nor are they expected to have a material impact on the company in future financial years.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
Impairment of non-financial assets
Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.
Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.
Economic dependence
The company is economically dependent on related parties, specifically the unit trust, for the majority of its revenue required to operate the business. At the date of this report, the directors have no reason to believe that the support from the unit trust will not continue to sustain the association and its operations.
Note 2. Critical accounting judgements, estimates and assumptions
Estimation of useful lives of assets
The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Identifying performance obligations under AASB 15
To identify a performance obligation under AASB 15: Revenue from Contracts with Customers, the promise must be sufficiently specific to be able to determine when the obligation is satisfied. Management exercises judgement to determine whether the promise is sufficiently specific by taking into account any conditions specified in the arrangement, explicit or implicit, regarding the promised goods or services. In making this assessment, management includes the nature/-type, cost/value, quantity and the period of transfer related to the goods or services promised.
Determination and timing of revenue recognition under AASB 15
For each revenue stream, the company applies significant judgement to determine when a performance obligation has been satisfied and the transaction price that is to be allocated to each performance obligation. The output method is used to recognise revenue once performance obligations are satisfied and goods/services are transferred to a customer.
Note 3. Revenue
Atrium Hotel Mandurah Pty Ltd
Notes to the financial statements 30 June 2024
Note 3. Revenue (continued)
Disaggregation of revenue
The disaggregation of revenue from contracts with customers is as follows:
Rent revenue from investment properties is recognised on a straight-line basis over the lease term. Lease incentives granted are recognised as part of the rental revenue. Contingent rentals are recognised as income in the period when earned.
Note 4. Cash and cash equivalents
Note 5. Trade and other receivables
Note 6. Property, plant and equipment
Atrium Hotel Mandurah Pty Ltd
Notes to the financial statements
Note 6. Property, plant and equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current financial year are set out below:
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:
Note 7. Trade and other payables
Note 8. Borrowings
Accounting policy for borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method.
Loans - related parties
The related party loan relates to an interest free loan from Atrium Body Corporate and The Trustee for Atrium Resort HotelManaged Investment Scheme.
Atrium Hotel Mandurah Pty Ltd
Notes to the financial statements
30 June 2024
Note 9. Key management personnel disclosures
The following persons were directors of the company during the financial year and/or up to the date of signing of these Financial Statements:
Mr. Jamie Trawinski
Ms. Kerry Lee
No director of the company receives remuneration for services as a director.
There are no executives within the company whose remuneration is required to be disclosed.
Note 10. Related party transactions
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
No director or related entity has entered into a material contract with the company. No director's fees have been paid.
During the year ended 30 June 2024 the company entered into the following transactions with related parties:
● The company recorded a loan payable to Atrium Body Corporate at 30 June 2024 equal to $523,716. The loan was provided on interest free terms and is repayable on demand.
● The company recorded a loan payable from The Trustee for Atrium Resort Hotel - Managed Investment Scheme at 30 June 2024 equal to $22,756. The loan was provided on interest free terms and is repayable on demand.
Note 11. Commitments
The company has no commitments contracted for which would be provided for in future reporting periods.
Note 12. Contingencies
There were no contingent liabilities or contingent assets at the date of this report.
Note 13. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the company's operations, the results of those operations, or the company's state of affairs in future financial years.
Note 14. Remuneration of auditors
Audit fees for all entities have been recorded within the The Trustee for Atrium Resort Hotel - Managed Investment Scheme accounts.
Atrium Hotel Mandurah Pty Ltd
Directors' declaration
30 June 2024
In the directors' opinion:
● the attached financial statements and notes comply with the Australian Accounting Standards - Simplified Disclosures.
● the attached financial statements and notes give a true and fair view of the company's financial position as at 30 June 2024 and of its performance for the financial year ended on that date; and
● there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Jamie Trawinski Kerry Lee Director Director
21 November 2024
Independent auditor’s report to the Directors of Atrium Hotel Mandurah Pty Ltd
Report on the audit of the financial statements
Opinion
We have audited the financial report of Atrium Hotel Mandurah Pty Ltd’s (the company), which comprises:
▪ Statement of financial position as at 30 June 2024
▪ Statement of profit or loss and other comprehensive income for the year then ended
▪ Statement of changes in equity for the year then ended
▪ Statement of cash flows for the year then ended
▪ Notes comprising a summary of significant accounting policies and other explanatory notes
▪ The directors' declaration of the company.
In our opinion, the financial report of the company is in accordance with the Corporations Act 2001, including:
i. giving a true and fair view of the company’s financial position as at 30 June 2024 and of its financial performance for the year ended on that date, and ii. complying with Australian Accounting Standards – Simplified Disclosures.
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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Independence
We are independent of the company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Material uncertainty related to going concern
We draw attention to Note 1 in the financial report, which indicates that the company incurred a deficit of $17,718 during the year ended 30 June 2024, further reducing the company’s net assets to ($51,479) The company recorded a working capital deficiency, with current liabilities of $608,589 exceeding is current assets of $8,254 These conditions, along with other matters as set forth in Note 1, indicate the existence of a material uncertainty that may cast doubt over the company’s ability to continue as a going concern and therefore, the company may be unable to realise its assets and discharge its liabilities in the normal course of business.
Directors’ responsibility for the financial report
The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Simplified Disclosures 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 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 cease operations, or have no realistic alternative but to do so.
Auditor’s responsibility for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional 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 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.
▪ 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.
Andrew Frewin Stewart
61 Bull Street, Bendigo, 3550
Dated this 21st day of November 2024
Adrian Downing
Lead Auditor
Resort Hotel Group
Financial Report - 30 June 2024
Atrium
Atrium Resort Hotel Group
Directors' report
30 June 2024
The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'group') consisting of Atrium Resort Hotel Group (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2024.
Directors
The following persons were directors of the group during the whole of the financial year and up to the date of this report, unless otherwise stated:
Mr. Jamie Trawinski
Ms. Kerry Lee
Review of operations
The profit for the group after providing for income tax amounted to $1,883,467 (30 June 2023: $173,602).
Principal activities
The principal activity of the group during the financial year was the provision of accommodation and hospitality.
Significant changes in the state of affairs
There were no significant changes in the state of affairs of the group during the financial year.
Matters subsequent to the end of the financial year
No matter or circumstance has arisen since 30 June 2024 that has significantly affected or may significantly affect the group's operations, the results of those operations, or the group's state of affairs in future financial years.
Likely developments and expected results of operations
No matter, circumstance or likely development in operations has arisen during or since the end of the financial year that has significantly affected or may significantly affect the operations of the group, the results of those operations or the state of affairs of the group.
Environmental regulation
The group is not subject to any significant environmental regulation under Australian Commonwealth or State law.
Indemnity and insurance of officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
Proceedings on behalf of the company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the directors
Jamie Trawinski
Kerry Lee Director Director
21 November 2024
Atrium Resort Hotel Group
For the year ended 30 June 2024
Atrium Resort Hotel Group Statement of financial position As at 30 June 2024
Atrium Resort Hotel Group Statement of changes in equity For the year ended 30 June 2024 The above statement of changes in equity should be read in conjunction with the accompanying notes
1,883,467 1,883,467
1,883,467 1,883,467 Balance at 30 June 2024 1,013,879 1,013,879
Atrium Resort Hotel Group Statement of
flows
the year ended 30 June 2024
Atrium Resort Hotel Group
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information
Basis of preparation
These general purpose financial statements have been prepared in accordance with the Australian Accounting StandardsSimplified Disclosures issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for profit oriented entities.
Statement of compliance
The group does not have 'public accountability' as defined in AASB 1053: Application of Tiers of Australian Accounting Standards and is therefore eligible to apply the 'Tier 2' reporting framework under Australian Accounting Standards.
The financial statements comply with the recognition and measurement requirements of Australian Accounting Standards, the presentation requirements in those Standards as modified by AASB 1060: General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060) and the disclosure requirements in AASB 1060. Accordingly, the financial statements comply with Australian Accounting Standards – Simplified Disclosures.
Historical cost convention
The financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Going concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.
Functional and presentation currency and rounding
The financial statements are presented in Australian dollars, which is the group's functional and presentation currency, and are rounded to the nearest dollar.
New or amended Accounting Standards and Interpretations adopted
The group has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current financial year. A description of the impact of new or amended Accounting Standards and Interpretations that have had a material impact on the group during the current financial year is outlined below:
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of Accounting Estimates is mandatory for annual reporting periods beginning on or after 1 January 2023 and was adopted by the group in the preparation of the 30 June 2024 financial statements.
AASB 2021-2 includes amendments to AASB 101 Presentation of Financial Statements, requiring the group to disclose material accounting policy information in its financial statements rather than significant accounting policies which was required in previous financial years. Accounting policy information is material if it, when considered with other information, could reasonably be expected to influence decisions of primary users based on the financial statements.
Adoption of AASB 2021-2 has had no impact on the numerical information disclosed in the group's financial statements. Rather, adoption has required the group to remove significant accounting policy information from the notes to the financial statements that is not considered material.
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Atrium Resort Hotel Group ('company' or 'parent entity') as at 30 June 2024 and the results of all subsidiaries for the year then ended. Atrium Resort Hotel Group and its subsidiaries together are referred to in these financial statements as the 'group'.
Subsidiaries are all those entities over which the group has control. The group controls an entity when the group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are de-consolidated from the date that control ceases.
Atrium Resort Hotel Group
Notes to the financial statements
30 June 2024
Note 1. Material accounting policy information (continued)
Intercompany transactions, balances and unrealised gains on transactions between entities in the group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.
Note 2. Critical accounting judgements, estimates and assumptions
Allowance for expected credit losses
The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates.
Estimation of useful lives of assets
The group determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.
Lease
term
The lease term is a significant component in the measurement of both the right-of-use asset and lease liability. Judgement is exercised in determining whether there is reasonable certainty that an option to extend the lease or purchase the underlying asset will be exercised, or an option to terminate the lease will not be exercised, when ascertaining the periods to be included in the lease term. In determining the lease term, all facts and circumstances that create an economical incentive to exercise an extension option, or not to exercise a termination option, are considered at the lease commencement date. Factors considered may include the importance of the asset to the group's operations; comparison of terms and conditions to prevailing market rates; incurrence of significant penalties; existence of significant leasehold improvements; and the costs and disruption to replace the asset. The group reassesses whether it is reasonably certain to exercise an extension option, or not exercise a termination option, if there is a significant event or significant change in circumstances.
Atrium Resort Hotel Group
Notes to the financial statements
30 June 2024
Note 3. Revenue
Accounting policy for revenue recognition Sales
Revenue from hotel services, such as room bookings, food, and beverages, is recognised at the point in time when the customer obtains control over the service or goods. For room bookings, revenue is recognised when the guest checks in and gains access to the room. For food and beverages, revenue is typically recognised at the point of sale or delivery, when the customer receives their order.
Strata levies
Revenue from strata levies is recognised as income when the right to receive payment is established, and it is probable that economic benefits associated with the transaction will flow to the entity.
Note 4. Special levy income
Accounting policy for special levy income
The special levy was established to facilitate the repayment of historical debts incurred by the Body Corporate. The repayment of these historical debts has now been fully completed. Distributed profits to owners from the unit trust will be applied against the special levy during the 2025 financial year.
Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows:
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Note 10. Trade and other payables
Atrium Resort Hotel Group
Notes to the financial statements
30 June 2024
Note 11. Borrowings
1,591,313
Accounting policy for borrowings
The related party loans relate to interest free loans from owners.
Note 12. Lease liabilities
Accounting policy for lease liabilities
The above lease liability is for the commercial lease of the property, 1/65 Ormsby Terrace, Mandurah, WA 6210, between Atrium Hotel Mandurah Pty Ltd and the trust.
Note 13. Distribution to unitholders
Current liabilities
Distribution to unitholders 1,631,623 -
Accounting policy for distribution to unitholders
At year-end, the trust has allocated the entirety of its distributable profit to unitholders. This distribution represents the full profit generated for the period and is payable in accordance with the trust deed. The distribution to unitholders is calculated based on the net profit for the period, after accounting for all relevant expenses, and is intended to be paid in full within the upcoming financial period.
Note 14. Key management personnel disclosures
The following persons were directors of the group during the financial year and/or up to the date of signing of these Financial Statements:
No director of the group receives remuneration for services as a director.
There are no executives within the group whose remuneration is required to be disclosed.
Note 15. Contingencies
The body corporate is currently involved in a legal dispute regarding an alleged loan claimed by David Evans. In 2020, David Evans, who previously served as Chairperson and Director of Atrium Hotel Mandurah, claimed he had provided three payments of $50,000 each to the body corporate over a span of several years. David Evans is pursuing legal action to recover these alleged loans. During the reporting year, the alleged loan has been recorded as forgiven in the financial statements, as its resolution is contingent upon the outcome of an ongoing court case and potential settlement. Management is monitoring the legal proceedings closely and will adjust the accounting treatment as necessary, depending on the final outcome of the case.
There were no other contingent liabilities or contingent assets at the date of this report.
Note 16. Commitments
The group has no commitments contracted for which would be provided for in future reporting periods.
Note 17. Events after the reporting period
No matter or circumstance has arisen since 30 June 2024 that has significantly affected, or may significantly affect the group's operations, the results of those operations, or the group's state of affairs in future financial years.
Atrium Resort Hotel Group
Directors' declaration
30 June 2024
In the directors' opinion:
● the attached financial statements and notes comply with the Australian Accounting Standards - Simplified Disclosures.
● the attached financial statements and notes give a true and fair view of the company's financial position as at 30 June 2024 and of its performance for the financial year ended on that date; and
● there are reasonable grounds to believe that the group will be able to pay its debts as and when they become due and payable.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
Jamie Trawinski Kerry Lee Director Director
21 November 2024
Compilation report to Atrium Resort Hotel Group
We have compiled the accompanying general purpose financial statements of Atrium Resort Hotel Group, which comprise the statement of financial position as at 30 June 2024, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the period then ended, a summary of material accounting policy information and other explanatory notes.
These have been prepared in accordance with the recognition and measurement requirements of Australian Accounting Standards and the mandatory disclosure requirements applicable to the preparation of general purpose financial statements in accordance with Australian Accounting Standards – Simplified Disclosures
The responsibility of directors
The Directors of Atrium Resort Hotel Group are solely responsible for the information contained in the general purpose financial statements, the reliability, accuracy and completeness of the information and for the determination that the financial reporting framework used is appropriate to meet their needs and for the purpose that the financial statements were prepared.
Our responsibility
On the basis of information provided by management of Atrium Resort Hotel Group, we have compiled the accompanying general purpose financial statements in accordance with the financial reporting framework and APES 315 Compilation of Financial Information.
We have applied our expertise in accounting and financial reporting to compile these financial statements in accordance with the financial reporting framework Australian Accounting Standards – Simplified Disclosures. We have complied with the relevant ethical requirements of APES 110 Code of Ethics for Professional Accountants (including Independence Standards).
Assurance disclaimer
Since a compilation engagement is not an assurance engagement, we are not required to verify the reliability, accuracy or completeness of the information provided to us by management to compile these financial statements. Accordingly, we do not express an audit opinion or a review conclusion on these financial statements.
Basis of accounting
The general purpose financial statements were compiled exclusively to meet the needs of Directors of Atrium Resort Hotel Group who are responsible for the reliability, accuracy and completeness of the information used to compile them. Accordingly, these general purpose financial statements may not be suitable for other purposes. We do not accept responsibility for the contents of the general purpose financial statements.
Jessica Ritchie
AFS & Associates Pty Ltd
61 Bull Street, Bendigo, 3550
Dated: 21 November 2024
APPENDICES
APPENDIX 6.1
INTRODUCTION TO CONSULTANTS & 1834 HOTELS TEAM
APPENDIX 6.2
APPROVED CORPORATE GOVERNANCE MODEL RESOLUTION PASSED [EGM 27 JUNE 2021, IMPLEMENTED 1 JULY 2021]
APPENDIX 6.3
PROJECT PHASES & IMPLEMENTATION PLAN
APPENDIX 6.4
CORPORATE STRUCTURE
APPENDIX 6.1 INTRODUCTION TO CONSULTANTS
CONSULTANTS
DONNA BATES – STRATEGIC PLANNING CONSULTANT
Donna Bates is an Award-winning Strategic Planning Consultant and Owner of OnPoint! Strategy. She has over 28+ years’ of experience in C-Suite Executive Leadership specialising in Corporate Strategy & Restructure, Governance and Marketing. She aligns companies to their Vision designing exceptional strategies to future-proof the companies she is consulting with, maximising sustainable profitability for ongoing growth. She’s worked for some of the world’s largest and most respected brands, most notably News Corporation and the Royal Automobile Clubs where she worked on National and International projects innovating and re-imagining these companies into agile, profitable businesses. She was also a Senior Media Advisor with the Department of Defence and is currently a member of the Australian Institute for Company Directors, Fellow of the Governance Institute of Australia, Conscious Capitalism, and the Centre for Public Integrity. In late 2020, Donna was the recipient of the Australian Women in Finance Award and runner-up for Businessperson of the Year with the RKCC in 2021. In 2022, she was awarded the Peel CCI Business of the Year. In 2023, she became the Chair of the Board of the Bendigo Bank and VicePresident for the Chamber of Commerce in Rockingham-Kwinana.
BARRY MANSOM – CHARTERED ACCOUNTANT & TAX ADVISOR
Barrie Manson has been providing accounting and taxation advice to the hospitality sector for more than 30 years. He is the Chairman of MC Lewan Chartered Accountants a Chartered Tax Advisor and a Fellow of the Chartered Accountants Australia and New Zealand.
Barrie holds a Diploma of Financial Planning and is an Associate of the Institute of Credit Management, and is a Justice of the Peace in and for the State of South Australia.
MC Lewan Chartered Accountants were appointed to manage the Atrium’s accounts post-FY23 with the changeover to industry-specific USALI accounting systems.
CONSULTANTS
VICKI MOUNTAIN – OWNER & SENIOR SOLICITOR
Vicki Mountain is the owner of one of WA's premier boutique law firms. She has represented clients in various courts and tribunals across Australia and is an admitted Barrister and Solicitor of the High Court of Australia and Supreme Court of Western Australia. Vicki has both accounting and legal qualifications providing her clients with a complete advocacy experience specialising in trade practices, contractual disputes, mediation, and conduct of major insolvency and other commercial litigation matters. Vicki's experience with the Department of Consumer and Employment Protection, various forensic accountants, and insolvency practitioners was instrumental to her engagement with (ASIC) the Australian Securities and Investment Commission, where she provided legal advice and appeared and assisted counsel with Federal Court actions concerning entities within the "Westpoint Group". During her engagement with ASIC, the Federal Court handed down the groundbreaking decision with ramifications for accessing trust assets if a debtor is deemed to be the ultimate controller of the trust funds. In 2000, she established Mountains Lawyers, providing access to affordable justice for her business clients. She is an active member/ committee member of the Insolvency Practitioners Association and the International Women's Insolvency Committee, and a member of the Executive Committee of the Rockingham-Kwinana Chamber of Commerce.
JAKE KNEEBONE - STRATA MANAGER
Jake Kneebone is the Owner of ESM Strata Pty Ltd established in 1987. ESM Strata is one of the largest Strata Management Companies in WA and has grown over this time, to manage in excess of 850 strata companies, representing over 11,000 lot proprietors. Jake has been a councillor of the Strata Titles Institute of WA (now SCA(WA)) and held committee positioning on Professional Standard, Law Review, and Business Planning. He was vice president and treasurer for a number of years. Jake is also a consultant to the property industry.
Jakes has represented the SCA(WA) on the Community Titles Advisory Committee (CTAC), a committee appointed by the Minister of Lands to advise the minister on community titles needs, including proposed amendments to the existing strata titles legislation. Jake is in regular contact to keep up to date with current practices and procedures in the eastern states to ensure that ESM embraces the latest technologies and practices.
HOTEL MANAGEMENT
ANDREW BULLOCK Chief Executive Officer
1834 Hotels
LEIGH KENTWELL
Managing
Partner
1834 Hotels
SAM PARKER Director of Finance
1834 Hotels
SHARNI KING Vice President Operations
1834 Hotels
KRISTY COATES
General Manager
Atrium Hotel Mandurah (Employed by AHM)
1834 HOTEL MANAGEMENT TEAM
1834 Hotels is an experienced, market leading, hospitality management company and consultancy specialising in the overall management of hotels, motels, pubs and resorts within the hospitality and tourism sectors.
We offer a complete “white label” management solution for investors, 1834 Hotels facilitates the undertaking of strategic operational, finance, WHS, sales, marketing, and revenue management for hospitality businesses.
1834 Hotels is working with Atrium owners to explore the strategic direction of the business and build a highly detailed budget and map daily revenue and expense totals to achieve and exceed those budget expectations. Which has become evident since the takeover of the hotel management in February 2023.
1834 Hotels not only focus on growing and maximising top-line sales but as crucially focuses on the controls of variable expense lines (e.g. wages, kitchen cost of goods and general expenses). We are seeing this across the figures in this Annual Report and the current YTD financials for the Atrium Hotel Mandurah. We look forward to the next evolution of growth and returns for owners.
APPENDIX 6.2: APPROVED CORPORATE GOVERNANCE MODEL
The above model was tabled and agreed upon by the Council or Owners and Board collectively at a meeting on the 27th January 2021, placing strict governance and oversight across the entirety of the Atrium Group of Companies.
This structure can only work as it should if it is upheld and used to govern the companies that have governance and oversight of the Atrium Hotel Mandurah for and on behalf of the Owners of SP11104.
It is highly recommended that the adopted model including non-owner professionals used to support the Council of Owners and Board of Directors in their capacity as Auditor, Company Accountants, Legal, Strategic Advisory, and Strata Management due to the significant complexities now in the governance and hotel operational industry. This is to ensure unbiased compliance across all levels of operations and strategic implementation is upheld.
Multi-level oversight and accountability have been implemented to ensure compliance standards are maintained, and as noted above this is only as good as the commitment of the Owner governing bodies to ensure remains in place.
Some decisions made historically (including some 10-15 years ago) were devoid of compliance, governance, or oversight putting the Owners, the Directors, and the Strata company at risk. This is no longer acceptable and the new model will ensure this not happen.
IMPORTANT FOR ALL OWNERS!
New strict government regulations surrounding employment law, OH&S manslaughter laws identify the company and directors as liable for non-compliance to OH&S regulations, along with other new Corporations and Strata Act provisions, and require additional resources to support them in their volunteer capacity roles. It is also recommended that the honorariums that were paid historically to directors and council of owner members be re-instated due to the hours required to be committed to these roles.
CRISIS RECOVERY TO PRODUCTIVITY
APPENDIX 6.4 CORPORATE STRUCTURE
The above is the Structure of the Atrium Group of Companies as created in 1982.
In 2021 as part of a governance review, governance documentation was updated to ensure compliance with ASIC, the Corporations Act 2001, and the Strata Titles Act (WA) 1985 This was shared with owners and ratified through owner resolution passed at the MIS EGM in June 2021 and communicated annually at the MIS Annual General Meetings.
As required by law, the Owner Group must ensure that all necessary legislative changes are reflected in their governing documents. This program of work is on-going on behalf of owners to ensure compliance.
