2 0 2 2 ENDYEAR 2022MAY
1PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 CONTENTS03 NOTICE TO MEMBERS 04 ORDINARY RESOLUTIONS 12 CHAIRMAN’S REPORT 15 CEO’S REPORT 23 DIRECTORS’ REPORT 29 AUDITOR’S INDEPENDENCE DECLARATION 30 STATEMENT OF COMPREHENSIVE INCOME 31 STATEMENT OF FINANCIAL POSITION 32 STATEMENT OF CHANGES IN EQUITY 33 STATEMENT OF CASH FLOWS 34 NOTES TO THE FINANCIAL STATEMENTS 49 DIRECTORS’ DECLARATION 50 INDEPENDENT AUDITOR’S REPORT
2 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 CHAIRMAN Christopher King DEPUTY CHAIRMAN Michael Hayes DIRECTORS Wayne Evans, Ralph Gibbons, Jeffrey Pattinson, Mick Garrihy CHIEF EXECUTIVE OFFICER David Gearing OPERATIONS MANAGER Glen Stewart FINANCE MANAGER Matthew Swain BEARERSOFFICE
5. To declare the results of the elections for positions on the Board in accordance with the triennial rule.
David Gearing CEO
3PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
i) Members who are employees of the Club are not entitled to vote ii) Proxy voting is prohibited
THE SEPTEMBER, 2022 AT
3. To receive reports from the Board of Directors.
6:00PM NOTICE
2. Confirmation of minutes from the previous Annual Meeting.
6. To receive and if thought fit, to pass the Ordinary Resolutions contained in the Notice of Annual General Meeting. It is a legal requirement that no resolution may be proposed at the General Meeting that is not already listed on the Notice of Meeting.
Any ordinary resolution must receive 50% +1 of those members eligible to vote at the meeting.
Under the Registered Clubs Act:
4. To receive and consider the Annual Report and Financial Report for the year ended 31st May 2022 including the Independent Auditor’s Declaration and Audit Report
ANNUAL GENERAL MEETING WILL BE HELD IN THE CLUB HOUSE ON WEDNESDAY 21ST
BUSINESSAGENDA OF THE MEETING SHALL INCLUDE: 1. Apologies
Amendments to Ordinary Resolutions (other than minor typographical corrections which do not change the substance or effect of the resolution) will not be permitted from the floor of the meeting.
Members are entitled to ask questions at the Annual General Meeting without giving this notice. However, if you do not submit questions in writing 7 days before the meeting, it may not be possible to provide you with an answer to your question at the meeting.
Members with questions on the Annual Report or accounts are asked to submit those questions in writing to the Chief Executive Officer 7 days before the meeting.
Chairman $7,000 plus 10.5% Superannuation.
7. The Board recommends that members vote in favor of the resolution.
3. Following this, the Board asked the current auditor, NorthCorp Accountants, to apply to the Australian Securities and Investments Commission for consent to resign from office as the Club’s auditors in accordance with the relevant provisions of the Corporations Act. The current auditor agreed to do this, and the application is expected to be determined by the date of the meeting.
Vice Chairman $5,000 plus 10.5% Superannuation. The remaining Directors (5) $4,000 each, plus 10.5% Superannuation.
ORDINARY RESOLUTIONS
The proposed honorariums are as follows:
4 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
All honorariums are to be paid pro rata to the service rendered, contingent on service being rendered.
Ordinary Resolution No. 1 – Resolution to appoint new auditor
Ordinary Resolution No. 2 – Honorariums of Directors
6. Below is a copy of the nomination of Mr. Edwards to be appointed as the Club’s auditor. This is also a requirement of the Corporations Act.
Explanatory Note
Pursuant to the Registered Clubs Act 1976 the members hereby authorise for the period preceding the next Annual General Meeting payment of the following honorariums at the expense of Club Ltd, as recommended by the board, in recognition of services rendered to Club Ltd.
5. In accordance with the Corporations Act, Mr. Edwards has consented in writing to being appointed as the Club’s auditor.
4. This means that the Board can now propose the appointment of the new auditors to member at the Annual General Meeting.
2. The results of that process were that Matthew Edwards of PDD Advisory was selected by the Board as the preferred auditors for the Club.
1. Last year, the Board conducted an expression of interest process for the office of the Club’s auditor and invited selected auditing firms to lodge an expression of interest.
That, subject to the Australian Securities and Investments Commission consenting to the resignation the Club’s current auditors, the members hereby appoint Matthew Edwards to be the auditor of Port Macquarie City Bowling Club Limited
(e) The reasonable cost of Director’s attending seminars, lectures, trade displays, structured study tours, fact finding tours and other similar activities as may be determined by the board from time to time.
The adoption of this resolution by the members meets the requirements of our Constitution, the Corporations Act 2001, and the Registered Clubs Act 1976.
Explanatory Note An honorarium may only be paid where approved by a resolution passed at a General Meeting of the Club Ltd.
It is at the discretion of each Director as to whether they accept the honorarium. Honorariums remain unchanged from previous year.
Ordinary Resolution No. 3 - Non-Monetary Benefits of Directors
The Constitution of the Club Ltd requires, subject to the provisions of the Registered Clubs Act 1976 a member of Club Ltd, whether or not he or she is a member of the board or any committee of the Club shall not be entitled under the rules of the Club or otherwise to derive directly or indirectly, any profit, benefit, or advantage from the Club that is not offered equally to every Full Member of the Club provided that nothing shall be construed as to prevent the allowance of honorariums as determined by the board to any member in respect of services rendered to the Club and such honorarium shall be approved in advance by the members of the Club at a General Meeting.
(b) Reasonable expenses incurred in relation to such other duties including entertainment of special guests to the Club and other promotional activities performed by Directors. Such activities and the expenses are approved by the Board before payment or reimbursement is made on the production of proper documentation of expenditure.
(f) Directors & Officers insurance policies.
As a result of the Treasury Laws Amendment (Enhancing Superannuation Outcomes for Australians and Helping Australian Business Invest) Act 2021 having received royal assent and associated removal of $450 minimum earnings threshold, all Club Ltd Director honorariums will now attract Superannuation Guarantee at the statutory rate.
(d) The reasonable cost of attending the General Meetings and training seminars of ClubsNSW, Club Directors Institute and any other recognised association within the Registered Clubs Industry as may be determined by the board from time to time.
(c) Reasonable expenses for the holding of an annual end of term office dinner, held at the board’s discretion for the Board of Directors, their special guests, and dignitaries.
All honorariums, at the discretion of the board may be paid in instalments (i.e., monthly, or quarterly) in arrears.
The adoption of this resolution by the members will confirm the amount paid as honorariums at the expense of Club Ltd in recognition of services rendered to Club Ltd for the period preceding the next Annual General Meeting and meet the requirements of the Corporations Act 2001 and the Registered Clubs Act 1976.
5PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
Pursuant to the Registered Clubs Act 1976 the members hereby approve the payment or reimbursement of expenditure, at the expense of the Club, during the period preceding the next Annual General Meeting for the provision of:
(a) The reasonable cost of light snacks during board meetings.
(g) The reasonable cost of apparel (for example monogramed shirt or blouse) as required
(b) Reasonable sum towards assisting with the provision of a supporters Coach or like to attend successful pennant team State Pennant finals.
(iii) The Club in its commercial dealings from time to time will engage in corporate sponsorships and trade suppliers and/or service providers which may result in the Club being entitled to benefits. These benefits may be in the form of function invitations, dinners, events, sporting matches or the like.
(i) The reasonable cost of directors’ membership of professional associations such as Club Directors Institute.
(h) The reasonable cost of an electronic device (e.g., laptop computer or tablet or similar device) being made available in respect of their duties as directors of the Club.
To the extent that this resolution involves the payment of out-of-pocket expenses, this resolution will acknowledge that expenses of these types proposed are prima facie acceptable and there is or will be a current resolution of the board authorising the payment of expenses of that kind before they are paid.
6 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 for the use of Directors when representing the Club.
(i) (a) Reasonable sum towards cost of travel, accommodation, and allowances, if required, for successful pennant teams involved in State Pennant finals.
A profit, benefit or advantage that is not offered equally to every full member and able to be authorised as a non-monetary benefit is still permissible if the Independent Liquor, Gaming and Racing Authority determines that it is reasonable in the circumstances.
(ii) The members acknowledge that the benefits (a) (d) above are not available to members generally but only those members who are Bowling Members of the Club, however, all members are entitled to utilise the Clubs facilities and services equally.
This resolution seeks to acknowledge the types of profit, benefit or advantage that are regarded by the members as reasonable in the circumstances.
Explanatory Note Directors out-of-pocket expenses reasonably incurred while carrying out their duties can already under the law be authorised by the board. However, the resolution in the interests of transparency makes disclosures of some of the type of expenses likely to be incurred
The amount of Director expenses shown in the Clubs accounting records for 2022 is $12,288 (2021 $6,760). The adoption of this resolution by the members meets the requirements of the Clubs constitution the Corporations Act 2001 & the Registered Clubs Act 1976.
The members acknowledge that the benefits above are not available to members generally but only those members who are Directors of the Club.
Ordinary Resolution No. 4 Non - Monetary Specific Bowling Member Benefits & Others Pursuant to the Registered Clubs Act 1976 the members hereby approve the payment or reimbursement of expenditure, at the expense of the Club, and at the discretion of the board during the period preceding the next Annual General Meeting for the provision of:
(d) Reasonable facilities and services in relation to bowling activities of the Sub-Clubs.
(c) Reasonable sum towards cost of travel accommodation and allowances for bowlers who represent the Club in State & National final events.
Pursuant to the Registered Clubs Act 1976 the members hereby authorise for the period preceding the next Annual General Meeting at the expenses of the respective unincorporated Sub-Clubs of the Club Ltd namely the Men’s Bowling Club & Women’s Bowling Club the payment of the following honorariums as endorsed by the board in recognition of services rendered by the committees of those Sub-Clubs:
The adoption of this resolution by the members meets the requirements of the Clubs constitution, the Corporations Act 2001, and the Registered Clubs Act 1976.
Ordinary Resolution No. 5 - Honorarium of Committees of the Club – Sub-Clubs
The Board is willing, bound or required to pass on these benefits to our members where appropriate and practical. The members acknowledge that it is not always possible to pass on these benefits equally amongst the members and that the board will always have to determine which benefits of this nature will be offered to members equally or otherwise in the best interest of the Club in its corporate capacity.
Senior Vice-President $ 500 (2021 $1,000)
Treasurer $ 750 (2021 $1,500)
Secretary $ 750 (2021 $1,500)
Vice-President $ 500 (2021 $1,000)
The remaining (3) Committee Members to receive $500 each (2021 $1,000).
The remaining 3 Committee Members to receive $200 each (Committee Members have reduced from 8 (2021) to 3).
Men’s Committee:
Secretary $ 750 (2021 $1,000)
Explanatory Note
The amount of costs incurred as shown the Club’s accounting records for State Pennant finals is for 2022 $2,205 (2021 $15,025). The trading statement on Bowls as shown in the accounting records reveals a deficit of $225,375 for 2022 (2021 $254,468).
President $ 1,000 (2021 $2,000)
Treasurer $ 750 (2021 $1,000)
Women’s Committee:
President $ 1,000 (2021 $1,500)
All honorariums are to be paid pro rata to the service rendered, contingent on service being rendered
The provision of benefits by the Club not in the form of money or cheque being provided to a specific class of member, generally is only permissible with a current authorisation from a general meeting.
7PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
A profit, benefit or advantage that is not offered equally to every full member and able to be authorised as a non-monetary- benefit is still permissible if the Independent Liquor, Gaming and Racing Authority determines that it is reasonable in the circumstances. This resolution seeks to acknowledge the types of profit, benefit or advantage that are regarded by the members as reasonable in the circumstances.
On comparison to previous years the level of honoria shows a sharp decline. This is because over time it has been identified that a larger number of duties and responsibilities of the respective committees have been assumed by the Bowls Coordinator and other management staff employed by Club Ltd.
• The reasonable costs of travel for Committee Members attending District and Zone meetings.
Superannuation Guarantee is not applicable to Sub-Club honorariums as Sub-Clubs are not incorporated bodies.
8 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
The adoption of this resolution by the members will confirm the amount paid as honorariums at the expense of the respective unincorporated Sub-Clubs of the Club in recognition of special honorary services rendered to the unincorporated Sub-Club for the period preceding the next Annual General Meeting and meet the requirements of the Corporations Act 2001 and the Registered Clubs Act 1976.
The Club’s constitution requires a member of the Club, whether or not he or she is a member of the board or of any committee of the Club, shall not be entitled under the rules of the Club or otherwise to derive directly or indirectly, any profit, benefit, or advantage from the Club that is not offered equally to every Full Member of the Club provided that nothing shall be construed as to prevent the allowance of honorariums as determined by the board to any member in respect of special honorary services rendered to the Club and such honorarium shall be approved in advance by the members of the Club at a General Meeting.
Pursuant to the Registered Clubs Act 1976, the members hereby authorise, for the period preceding the next Annual General Meeting, at the expense of the respective unincorporated Sub-Clubs (namely the Port Macquarie City Men’s Bowling Club and the Port Macquarie City Women’s Bowling Club) the payment of, or reimbursement of, reasonably and properly incurred expenditure incurred in carrying out Sub-Club activities by Committee Members, subject to the discretion of the board, of the following:
Ordinary Resolution No. 6 – Non-Monetary Benefits for Sub-Club Committees
An honorarium may only be paid where approved by a resolution passed at a General Meeting of the Club Ltd.
It is at the discretion of each committee member as to whether they accept the honorarium. All honorariums are at the recommendation of the of the respective unincorporated Sub-Club committees.
Accordingly, the board has submitted this resolution to satisfy corporate governance standards and as additional transparency.
Generally, several Bowling Clubs are undertaking structural changes with respect to Sub-Clubs. If changes were to occur to Sub-Club structure at our Club during the year, honorariums will need to be reviewed and adjusted accordingly.
The Club’s lawyers have advised that there is no strict need to obtain approval for these honorariums, however, modern corporate governance would require that all honorariums paid by the Sub-Clubs be approved in accordance with the Registered Clubs Act.
It is essential to remember that all monies held by the unincorporated Sub-Clubs remain the property and responsibility of Club Ltd.
Explanatory Note
• Sundry benefits for Bowling Members who do not receive an honorarium, may be recognised for their services in assisting in the running of Sub-Club activities by the way of member reward points. Such benefits are to be at the discretion of the CEO. This includes activities such as working bees, maintenance, umpiring and marker duties.
• Reasonable contribution towards the cost of travel expenses for Pennant and State Championship events for Bowling Members.
9PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
The adoption of this ordinary resolution authorises for the provision of certain benefits, to be provided subject to the discretion of the Board and or the CEO.
The members acknowledge that these benefits are not available to members generally but only those members who are Bowling Members of Club Ltd.
Ordinary Resolution No. 7 – Sub-Club Benefits for Bowling Members
The provision of benefits not offered equally to every Full Member of the Club, not in the form of money or a cheque, being provided to a specific class of member is only permissible with a current authorisation from a General Meeting.
The members acknowledge that the benefits above are not available to members generally but only to those members who are Committee Members of the respective Sub-Clubs.
Explanatory Note
• Reasonable cost towards the cost of food and beverages for the Bowling Members and guests at special events.
Following advice from the Club’s lawyers, it is essential to remember that all monies held by the Sub-Clubs remain the property and responsibility of Club Ltd.
The provision of benefits not offered equally to every Full Member of the Club, not in the form of money or cheque, being provided to specific class of member is only permissible with a current authorisation from a General Meeting.
• Cash payments at the recommendation of the Sub-Club Committee for Bowling Members who are championship finalists.
Explanatory Note
• The reasonable cost of apparel (e.g., monogrammed shirt) as required for the use by Committee Members when carrying out their duties.
The adoption of this ordinary resolution authorises for the provision of certain benefits, at the discretion of the board, to Committee Members of the Sub-Clubs.
Pursuant to the Registered Clubs Act 1976, the members hereby authorise, for the period preceding the next Annual General Meeting, at the expense of the respective unincorporated Sub-Clubs (namely the Port Macquarie City Men’s Bowling Club and the Port Macquarie City Women’s Bowling Club) the payment of, or reimbursement of, expenditure reasonably and properly incurred in carrying out bowling activities, at the discretion of the board, for the following:
Following advice from the Club’s lawyers, it is essential to remember that all monies held by the unincorporated Sub-Clubs remain the property and responsibility of Club Ltd.
• Reasonable expenses for the conduct of an end of term of office dinner for the SubClub Committees and special guests.
10 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 PORT CITY BOWLING CLUB IN THE COMMUNITY CLUB LIMITED PATRON MEMBER Robert Langham CLUB LIMITED LIFE MEMBERS Ron Limbert*, Bob Kane*, Neville Schwartz, Rex Holihan MEN’S BOWLING CLUB LIFE MEMBERS Mervyn Green*, Reg Lucas, Noel Paterson, Alan Ison*, Terry Schollum WOMEN’S BOWLING CLUB LIFE MEMBERS Norma Schwartz, Frances Green, Robyn Biddle, Shirley Devine Mixed Probus Club of the Hastings Linked Community Services Port City Travelling Bowlers Port Macquarie Animal Welfare Service Inc. Hastings Valley Vikings Rugby Union Port Macquarie Blue Water Fishing Club News Watch Discussion Group Hastings Fly Fishers Port Macquarie Heritage Car Club Port City Leagues Cricket Club Port Macquarie Landcare Group Inc. Rotary Club of Port Macquarie Sunrise Zone 8 RSL Bowlers Association Port City Men’s Bowling Club Port City Women’s Bowling Club Probus Club of Port Macquarie Inc. Mid North Coast Retired Police GentleAssociationExercise Nations Seniors Australia Ltd. A.I.R Investor Education Sailability NSW inc. Port Macquarie Branch Port Macquarie Tennis Club Make A Difference Port Macquarie Cerebral Palsy Alliance Heart Health NSW Inc. Willing & Able Foundation Ltd. Port Macquarie Community Preschool Surf Life Saving Mid North Coast Beach to Brother Trail Running Festival Telepoint Flood Disaster HastingsRecovery AssociationResidents Hastings Valley Fine Art Association Inc Marine Rescue Port Macquarie Port City Bowling Club is proud to support community, sporting, social and charity groups – your local supporting our locals!
11PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Proudlypartnershiptogetherworkingin
REPORTCHAIRMEN’SChrisKing
Living with COVID-19 This year we have all learnt to live with the COVID-19 pandemic and while our primary focus has been on ensuring the health and hygiene of our staff, members, and guests we have also continued to minimise the financial impact by managing our expenses and protecting our financial holdings.
12 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211
All of this requires significant financial
Even with these challenges our focus is still about consolidating on the extension and refurbishment and carrying out due diligence on other options, including development opportunities that will help ensure the future and growth of our Club. Particularly, those areas that have the potential to generate the most revenue and diversify our revenue streams. This includes the extension of our Drift Bar.Café.Restaurant which has provided additional seats inside, an outside al fresco dining facility and a larger more workable kitchen. These have proven to be successful with staff, members, and visitors.
Vale I would like to pass on the Board’s sincere condolences to the family and friends of members who have passed away over the last 12 months.
During these unprecedented times the Board also continued to advocate for your Clubs future through regular liaison with stakeholders and regulators, including ClubsNSW, our local Members and other Clubs. Renovations and Refurbishment
The feedback has been nothing short of fantastic. This extension meant relocating the number 1 green and creating an area adjacent to Drift that the Board has earmarked as a future al fresco entertainment area which we hope to commence working on in the new year.
Introduction I hope this report meets you safe and well. This is my seventh report as Chairman of our wonderful Club and each year has brought new challenges and opportunities that have inspired me to continue to achieve our vision of being the best bowls and entertainment venue on the Mid North coast. I welcome all new members and thank our loyal members for supporting us over the past year, particularly in recent uncertain times. I am confident that you will continue to enjoy our Club.
The Board has engaged the same architect that was used in the 2016 extension to design this area as well as recommending uses and developing designs for other areas within the Club. This will form part of our 10-year renovation and refurbishment program. Other areas under consideration include the extension of the gaming area to accommodate all gaming machines, best use of the upstairs area previously occupied by the buffet, the installation of an elevator to service that area, relocation of the administration area downstairs, function rooms and private dining areas and extending and improving the NonThinkers bar, including audio visual upgrades.
investment which is why we embarked on a project to better utilise our carpark and seek a joint venture partner to redevelop this area while continuing to provide parking for our members and guests. At the time of writing this report we have conducted member information sessions, went out to market to seek expressions of interest from joint venture partners, short listed those partners who best aligned with our vision and received presentations from those shortlisted. As previously advised the board has engaged property experts to guide and assist us through this process and we will keep you informed on the progress of this major project.
Financials I can also report that we extinguished our fixed loan during the year. However, we did receive a low interest loan of $400k from the Rural Assistance Authority. Our goal is still to continue to reduce and eliminate this loan at the earliest opportunity and to minimise borrowings while continuing to satisfy the needs of our members. Including utilising accumulated funds to pay for the above mentioned $2m Drift extension, rather than drawing down additional debt.
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Our financial holdings currently stand at circa $2.5m which we will continue to build on to fund future improvements and facilities for members and guests.
Membership We now have around 12,394 social members and more than 300 bowling members as of July 2022 and thanks to their support and good management I am proud to report that the Club has managed to post an audited trading surplus of $684,730 in the past year, which was a good outcome under the circumstances.
Community Support While doing the above your Club has and will continue to support community groups though donations and the grants program. The Club provided more than $100,000 in ClubGrants. The Club also continued to support worthy causes, including those impacted by the floods, as well as sponsor and support local sporting groups, including the Hastings Valley Vikings Rugby Union Club and Port City Leagues Cricket Club. These sponsorships have proved to be successful with all parties benefiting from the arrangement.
Branding While doing this we need to continue to build on our brand and our vision as being a locally owned family entertainment venue with excellent bowling facilities. Your board is committed to continually reviewing and improving our products and services, examining opportunities to diversify our offering, improve our revenue stream, look at other revenue opportunities and ensure that we continue to meet if not exceed your expectations. While our real estate holdings may put us in a strong position to pursue residential or retirement accommodation as a possible line of alternative income the timing of this has been reviewed in terms of our 10-year master plan Feedback I continue to receive is that our members are very proud of their Club, particularly our Bar.Café.Restaurant, which is booked out most evenings. Visitors and other organisations also continue to acknowledge our Club and its staff. However, we always welcome your suggestions on how we can improve. The suggestion box, which we consistently review, is one way you can do this.
Over the last year, the Board continued to pay particular attention to ensuring the Club had good corporate governance in place. Including implementing the initiatives outlined in the Club’s strategic plan, developing, and reviewing key policies and placing greater rigor around risk and audit compliance. I would also like to thank our auditors, Northcorp and I am pleased that we have again received an unqualified report for the past 12 months.
Good Governance and Audit
I welcome any suggestions you may have in this regard.
Bowls The Bowls Co-ordinator in collaboration with the Men’s and Women’s Bowling Sub-Clubs have again done a fantastic job in putting on events to encourage new members and increase participation levels, including events that support very worthy causes, such as Corporate Jack Attack, Cancer Council, Give Me 5 For Kids and Sailability. Congratulations also to the Women’s Grade 1 Triples and the Men’s Grade 1 team in winning the state finals. A fantastic achievement I would also like to thank the Travelling Bowlers for their contribution to the Club and the work that they do to support charities and other worthy causes.
All aspects were considered in developing the latest Bowls Strategic Direction which I invite you to read. However, as mentioned earlier any investment comes at a cost and the car park development if implemented will assist us in not only meeting our financial obligations but improving our facilities.
The Board is proud of our bowls history and will continue to undertake to explore every opportunity in collaboration with both Sub-Clubs to ensure this tradition is continued. We will continue to consider opportunities to reduce maintenance costs, increase bowler participation numbers, provide more game options to attract social members and visitors, project the number of greens that will be required over the next 10 years, assess the types of bowls surface best suited to our environment and which greens are best covered to maximise their usage in the medium to longer term.
It would be remiss of me not to thank my Board of Directors for their support and the results they have achieved this year. A lot of time and effort goes into being a director, particularly in positioning us to meet current and future challenges.
Management, Staff, and Board I would like to take this opportunity to thank our CEO David Gearing who joined us in 2020, David has proved to be a valuable addition to our club. His previous experience as well as his initiative, drive, professionalism and commitment to our staff and members again contributed greatly to our successful year. Through his initiative the Club has conducted several major promotions, introduced new menus, wine lists and cocktails and improved audio and visuals throughout the Club. All of which have proved to be successful with members. He continues to promote our brand through his involvement in the local community and throughout the Club industry. Including benchmarking our services, entering our Club into the local business awards, where we were again a finalist and in entering the Club into the ClubsNSW Perfect Plate Competition, where our dish has attracted great reviews. With COVID-19 it has been a difficult year for David and his management team, particularly in employing and retaining skilled staff but regardless the level of service from staff to our members continues to be at the highest level and the recognition they consistently receive is well deserved.
Warm regards Chris ChairmanKing
To finish my report, I would like to mention that my term of office ends at the upcoming AGM and regardless of whether I choose to seek re-election I have enjoyed my time on the board and I wish to thank all of those that have assisted and supported me in presenting you with a Club that you can feel proud to be a member.
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Over the last 5 months of last year, we embarked on a project to extend the very popular Drift Café and Restaurant from 80 seats to 180 seats to really cater to the uplift in demand. We tried to get through as much of the work as possible while locked down so that our members and guests were not subject to heavy machinery operating whilst trying to relax and enjoy the Club’s facilities. During the lockdown we launched our takeaway service for food and beverage which was taken up by many Port Macquarie residents. This also proved to be valuable for our staff to re-engage them back to the workplace. Once our lockdown was finished, we operated the Drift restaurant in the upstairs space which was well received by our members and guests. I was extremely happy with how Drift traded upstairs giving confidence to operate further food and beverage upstairs once we moved the Drift Café back downstairs. We finished the renovation to Drift the week before Christmas which was a really great effort by our builder Joyce Constructions to get the project finished in time for the busy period. From December to present day, the Drift has seen a dramatic raise in revenue and the numbers of attendance to the Club has risen as well. It has been very encouraging for the management and staff to see the Drift trading back to its best.
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The Club also was given a brand-new roof across the older part of the Club which couldn’t have been timed better to hold off the heavy rains. I was very pleased to see the Club involved in some fantastic community events and fundraisers for charity groups. Events like the Rotary’s Big Dig and Tele Point Fundraiser on the greens, Make a Difference’s Ride the Wave Festival and ongoing sponsorship to Sister Marjorie’s Soup Kitchen. I am also pleased to announce the ongoing sponsorship to the Viking’s Rugby and Port City Leagues Cricket Club. We also donated furniture to the flood stricken Club’s in northern NSW along with a new dingy to Sailability which was such a great help to those in need.
Over the course of the year we engaged with Barrington’s College and enrolled management and staff to complete
Over the past year the Club experienced more lockdowns and restricted trade over 4 months from COVID-19 and more wet weather which made trading a rocky road but by March we really felt that we had seen the last of the restrictions to our trading. Once the COVID-19 restrictions were eased the rain started to ease as well, the Club has been trading excellently and our membership renewals have shown this. It has been great to see the Club back to its trading best and we are looking forward to a restriction free year.
REPORTCEO’SDavidGearing
Dear Members, It is with great pleasure that I present my 2022 report to you. At the outset, I would like to thank each and every one of you for your ongoing support of the Club throughout the past 12 months.
follows: 1 Year Memberships 3,819 3 Year Memberships 8,565 Life Memberships 10 Men’s Bowling Memberships 252
We are also planning to upgrade the grassed area between the bowling green and the Drift terrace for more alfresco areas and to also encourage our visitors to have a game of bowls to try and grow our sport. We will hopefully have our approvals by the end of the year and look to commence construction early in the new year. With these upgrades to the Club, I strongly believe that our Club will continue to be one of the leading Bowling Clubs in regional NSW.
Financially, 2022 has been a solid trading year for the Club even with forced closures and reduced consumer sentiment and I am pleased to report the following excellent financial results. Our EBITDA profit for the year was $1,875,866 with a net profit of $684,730. The total revenue for the Club was $11,985,890 which was a decrease on the previous year of 11%. The main trading areas are summarised below: Bar Revenue $2,607,393 down 10% on the previous year Sales $2,074,638 up 1% on the previous year Revenue $5,928,734 down 15% on the previous year Keno Revenue $128,272 down 8% on the previous year TAB Commissions $38,600 down 8% on the previous year
Member numbers
16 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 different levels of training and certificates in Kitchen Leadership, Certificate IV in Leadership and Management and Club Operations. I was very proud of the management and staff that enrolled in these courses and completed them successfully. I will continue to upskill and grow our management staff with further training and courses throughout the year.
The Board and I have also started the process of evaluating our under utilised carpark. The Club then engaged with our consultant on the project, Suburbanite, who will be consulting for the Club throughout the project. With carparking a necessity for the Club, we have looked at what would be the value of the air space above the carpark. There is an 8-storey height limit, and the Club has gone to an Expression of Interest in the market for retired living units, residential units or short-term accommodation (hotel/ motel). At this point in time, we are still in early stages and the Board, Suburbanite and I are looking into the best model for us. We held two information sessions for the members to ask questions and most importantly we held the sessions to really take the members on this exciting journey from the start to finish. Once the Club has moved to the next stage, we will be certainly inviting our members to the next information sessions which we will continue to hold for the project. I urge all members to come along and give your feedback for a project that could see a great financial structure for the next 100 years of the Club.
are
Memberships have decreased during the year with a summary of current memberships outlined below. These numbers have understandably been affected by the constant COVID-19 outbreaks and uncertainty around travel that have been experienced throughout the year. The for the respective as at the end of May as
categories
The Board and I have continued to work together on further renovations to the back end of the Club with proposed upgrades to the bowler’s lounge, entertainment lounge, a total upgrade of the upstairs area including a new function room, extension of the gaming room to allow us to incorporate our gaming machines that are currently in storage, inclusion of another staircase and lift for access for our members and guests to access upstairs.
Café
Gaming
Kylie Hardy was selected for the over 40s NSW V Qld test series to be played at Taren Point. Kylie has also qualified for the Australian Indoor in Tweed Heads. We all wish Kylie the best of luck for her upcoming tournaments at a State level. I would also like to thank Phil Baker, the Sub Club Committee’s and the volunteers that did a fantastic job all year on making the sport of bowls so successful at our Club. Finally, I would like to take this opportunity to thank the Chairman, Chris King, and his fellow Directors for their ongoing support. Also, I would like to thank Glen Stewart, Matthew Swain and the rest of the management team including the amazing staff that have given nothing but their best efforts in the day to day running of the Club. Without the team of great staff, the Club would not be what it is today!
17PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Womens Bowls Memberships 101 Lawn Bowls at Port City saw some excellent events and results across the year with both Men’s and Ladies bowls achieving: Womens State Fours Champions 2021
2021 Greg Keft, Ken Paulsen, Peter Macdonald, Craig Cooper, Ross Langsford, Michael Taylor, Matthew Carter, Peter O’Connell, Michael Brennan, Richard Trow, Ken Paulsen, Jake Waterhouse, Phil Baker, Cody Griffin, Jai Whelan, Womens Grade 1 State Pennant Finalist 2021 Lyn Zahra, Kylie Hardy, Robyn Hehir, Faye Schollum, Rhonda Evans, Carol White, Sue Wood, Karen McFarlane, Julie McKay. These are the major events above however
David Gearing Chief Executive Officer
Jeanice Schiemer, Sonny Willis, Karen McFarlane, Kylie Hardy, Runner Up State Womens Pairs 2021 Kylie Hardy, Carol White, Mens State Triples Champions 2021 Jai Whelan, Jake Waterhouse, Matthew Carter, Mens Grade 1 State Pennant Finalist
18 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Having a FUNCTION Port City is your perfect venue! CORPORATE | PARTIES | WEDDINGS | MEMORIALS For more information call 6583 1133 or email rose@portcity.com.au At Port City we offer friendly and professional service to ensure your event is everything you imagined it to be. PRIVATE ROOMS CATERING & FUNCTION PACKAGES
19PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 WHEN BOWLS & CRICKET COLLIDE BOOK INGS ESSENTIAL *CONDITIONS APPLY | MININUM OF 10 PEOPLE Fun & competitive social bowls game PERFECT FOR PARTIES, TEAM BUILDING & $15FUNDRAISERS PER PERSON
20 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 OURCELEBRATINGMEMBERS
21PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 In-Kind Contribution: $45,450 Cash Contribution: Category 1 $48,763 Category 2 $71,518 OUR CLUB IN NUMBERS 91 EMPLOYEESTOTALFull-Time:29Part-Time:2Casual:60 856538191yearsocialMembers3yearsocialMembers Life10Members350SplashKidsMembers DemographicMember45%Female55%Male 12,646PortCityMembers OrganisationsCommunity35Supported MembershipBowlingWomen’sClub101Men’sClub252
22 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 STATEMENTSFINANCIAL FOR THE YEAR ENDED 31 MAY 2022
•
The short term objectives of the Company are to: Provide entertainment, food and beverages for the members and visitors at reasonable prices; Provide support for community groups and to provide a place for these groups to meet; Sponsor and support local sporting groups and community organisations; Continue to promote and improve member facilities.
23PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 DIRECTORS' REPORT 1 Your Directors present their report on the Company for the financial year ended 31 May 2022. Directors
•
The long term objectives of the Company are to: Extend, renovate and improve the Club's facilities; Increase the Club's membership; Improve the Club's financial position; Promote the Club as the hub of the community that brings members and guests together; Provide for and promote the game of lawn bowls.
•
•
•
•
(Resigned
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Short-Term Objectives
•
The names of the Directors in office at any time during or since the end of the financial year are:
Long-Term Objectives
Christopher KING Wayne EVANS (OAM) Michael HAYES Jeffrey PATTINSON Mick MarkRalphGARRIHYGIBBONSPARRY 29/11/2021)
•
•
• Conduct promotions throughout the year for the benefit of members and their guests;
Principal Activities
To achieve the objectives of the Company the following strategies have been adopted:
• Offer high quality, reasonably priced meals and beverages;
Means by which Principal Activities Assisted in Achieving the Company's Objectives
The Company measures and monitors performance by comparing actual monthly results to budgets and past performance. The Company reviews key performance indicators such as membership numbers, gross profit margins and trading results of key income areas such as bar, bistro and poker machine operations.
Members' Guarantee
Core and Non Core Property Core property is defined as any real property owned by the Club that comprises the defined premises of the Club or any facility provided by the Club for the use of its members and their guests. Core property of the Club consists of the land occupied by the Clubhouse and bowling greens at 4 Owen Street and the carpark on the corner of Owen and Church Streets, Port Macquarie New South Wales.
Strategies Adopted for Achieving Objectives
Non core property of the Club means any real property owned by the Club that is not core property. Non core property consists of 7 9 Church Street, Port Macquarie New South Wales.
Port Macquarie City Bowling Club Limited is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $20 towards meeting any outstanding obligations of the Company. At 31 May 2022 there were 12,394 members with a collective liability of $247,880.
• Retain and engage suitably qualified and experienced employees to provide the best possible service and maintain the Club's facilities;
Auditor's Independence Declaration
Key Performance Measures
24 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 DIRECTORS' REPORT 2
A copy of the lead auditor's independence declaration as required under section 307C of the Corporations Act 2001 has been received and is included in this financial report.
• Provide entertainment, bowls tournaments and promotions to attract patronage to the Club;
• Annual development of financial budgets and monthly monitoring of financial performance and financial position to ensure the Club operates within its financial capabilities
The principal activities of the Company during the financial year was the conduct of a licensed Bowling Club. No significant change in the nature of this principal activity occurred during the financial year.
The profit and cash flows generated from the Company's principal activities were utilised in achieving the Company's objectives.
25PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 LimitedClubBowlingCityMacquariePort 21105600171ABN REPORTDIRECTORS' DirectorsofMeetings follows:aswereyeartheduringorDirecteachbyAttendancesheld.wereDirectors)ofcommittees(includingDirectorsofmeetings44year,financialtheDuring Directors' Meetings BoardSpecial Meetings RemunerationCommitteePolicyCommittee andConstitution LawsBy Committee ClubSub- Meetings Executive Committee Eligible to attend Number attended Eligible to attend Number attended Eligible to attend Number attended Eligible to attend Number attended Eligible to attend Number attended toEligible attend Number attended toEligible attend Number attended KING*Christopher12127722331212 (OAM)EVANSWayne121177115533 HAYESMichael1211772211551211 PATTINSON*Jeffrey1212772233--331211 GARRIHY*Mick12127632 GIBBONS*Ralph121276115532 116PARRYMark454-------- COVIDtoDue*19circumstances,businessrelatingtotheAudit,RiskandCorporateGovernanceCommitteewasaddressedatBoardlevelduringtheyear. 3
Experience Director Port City Bowling Club 8 years, Senior Vice President of Port Macquarie City Men's Bowling Club for 1 year, Past member of 3 Boards in Western Sydney, Past Director of Linked Community Services, Past Vice President and Life Member of Port Macquarie Blue Water Fishing Club, President Willing & Able Foundation. Responsibilities Chairperson of the Board of Directors Executive Committee Member Risk, Audit and Corporate Governance Committee Planning Committee Policy
Special
WhistleDisciplinaryBowlsRemunerationCommitteeCommitteeCommitteeCommittee,blowerCommittee
Strategic
Experience Director of Port Macquarie City Bowling Club for 7 years, Director of Port Macquarie Race Club
Special Responsibilities Disciplinary Controller Workplace, Health and Safety Committee Strategic Planning Committee Constitution and By Laws Committee Whistle blower Committee
Wayne EVANS (OAM) Qualifications Retired Magistrate, Non practising Barrister, Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) Competency Course Completed and Responsible Conduct of Gambling (RCG) Competency Course to be completed.
26 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 DIRECTORS' REPORT 4 Information on Current Directors Christopher KING Qualifications Commerce Certificate Diploma, Certificate III in Corporate Governance, Justice of the Peace, Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed.
Special Responsibilities
Michael HAYES Qualifications Retired Certified Practising Accountant (CPA), Registered Company Auditor, Registered Tax Agent, Member of the Club Directors Institute, Justice of the Peace, CDI Mandatory Courses and Clubs NSW Masterclasses on Strategic Planning and Corporate Governance completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed.
Strategic Planning Committee Constitution and By Laws Committee
Jeffrey PATTINSON Qualifications Diploma Health Administration (DipHA), Certificate Hospital Administration (CHA), Fellow Australian Institute of Company Directors (FAICD), Company Directors Diploma (AICD), Justice of the Peace (JP),Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) Competency Course and Responsible Conduct of Gambling (RCG) Competency Course.
Experience Director of Port City Bowling Club 5 years, 42 years Hospital / Health Administration, 8 years General Manger Port Macquarie Base Hospital, Kempsey and Wauchope Hospitals and Community Health Services, Chairman Holiday Coast Credit Union for 10 years, Member Club Directors Institute CDI Mandatory Courses completed.
27PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 DIRECTORS' REPORT 5
Vice ExecutiveBoardChairpersonAssessmentsCommittee Member Remuneration Committee
Information on Current Directors (continued)
Experience Director of Port Macquarie City Bowling Club for 8 years, Treasurer of Port Macquarie City Men's Bowling Club for 1 year, Auditor, Advisor and Officer Holder to numerous registered clubs, sporting associations and charities.
Executive Committee Member Policy Committee Audit, Risk and Corporate Governance Committee Strategic Planning Committee Remuneration Committee
Special Responsibilities
28 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 DIRECTORS' REPORT 6 Information on Current Directors (continued) Ralph QualificationsGIBBONSExperienceSpecialResponsibilitiesMickGARRIHYQualificationsExperienceSpecialResponsibilities
Policy
Member of Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed.
Building
Policy ConstitutionStrategicBowlsBuildingCommitteeCommitteeCommitteePlanningCommitteeandByLawsCommitteeMemberofClubDirectorsInstitute,CDI Mandatory
Director of Port City Bowling Club 2 years, Chief Executive Officer (CEO) of several Registered and Licensed Clubs for a combined tenure of greater than 25 years, Director of a Sydney based sporting Club and successfully owned and leased Hotels. Courses completed, various Club Managers Association Australia courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed.
Signed in accordance with a resolution of the Board of Directors: Cha Christopher KING Dated: 27 July 2022
Director of Port City Bowling Club 2 years, Worked in Club Industry for 40 years with 25 years at a Senior Management level. Committee Audit, Risk and Corporate Governance Committee StrategicCommitteePlanningCommittee
29PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 AUDITOR'S INDEPENDENCE DECLARATION Under Section 307C of the Corporations Act 2001 To the Directors of Port Macquarie City Bowling Club Limited I declare that, to the best of my knowledge and belief, during the year ended 31 May 2022 there have been no contraventions of: (i) the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. NorthCorp Accountants Darren Johnson Lead Auditor 10-12 Short Street Port Macquarie NSW 2444 Dated: 27 July 2022 PaulPARTNERSFahey B Bus CA Bart Lawler B Com CA
30 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 The accompanying notes form part of these financial statements. 8 STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 31 May 2022 2022 2021 Note $ $ Revenue 2 11,985,890 13,494,127 Changes in inventories 3 11,504 (1,025) Inventories purchased 3 (1,769,599) (1,849,217) Advertising and promotion (1,087,283) (1,079,093) Bingo and raffle prizes (78,206) (53,469) Bowls expenses (43,303) (57,596) Depreciation 3 (1,190,376) (1,189,385) Donations (103,522) (134,042) Electricity and gas (266,720) (234,609) Employee benefits expense (3,775,714) (3,707,622) Entertainment (246,260) (187,656) Finance costs 3 (760) (50,718) Insurance (207,196) (187,272) Other poker machine expenses (145,700) (135,483) Poker machine supplementary tax (1,139,339) (1,367,170) Rates and taxes (136,250) (151,674) Repairs and maintenance (521,533) (571,019) Other expenses (600,903) (650,183) (11,301,160) (11,607,233) Profit before income tax 684,730 1,886,894 Income tax expense 1(a) Profit for the year 684,730 1,886,894 Other comprehensive income for the yearTotal comprehensive income for the year 684,730 1,886,894 Profit attributable to members of the Company 684,730 1,886,894 Total comprehensive income attributable to members of the Company 684,730 1,886,894
31PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 The accompanying notes form part of these financial statements. 9 STATEMENT OF FINANCIAL POSITION As at 31 May 2022 2022 2021 Note $ $ CurrentASSETSassets Cash and cash equivalents 4 2,951,534 4,819,178 Trade and other receivables 5 314,042 157,105 Inventories 6 83,506 72,002 Other assets 7 26,571 19,679 Total current assets 3,375,653 5,067,964 Non current assets Intangible assets 8 84,000 84,000 Property, plant and equipment 9 17,666,030 16,210,828 Total non current assets 17,750,030 16,294,828 TOTAL ASSETS 21,125,683 21,362,792 CurrentLIABILITIESliabilities Trade and other payables 10 976,411 1,381,210 Borrowings 11 202,850 725,042 Other current liabilities 12 129,560 128,268 Provisions 13 409,452 401,062 Total current liabilities 1,718,273 2,635,582 Non-current liabilities Borrowings 11 545,056 551,480 Provisions 13 26,387 24,493 Total non-current liabilities 571,443 575,973 TOTAL LIABILITIES 2,289,716 3,211,555 NET ASSETS 18,835,967 18,151,237 EQUITY Retained earnings 18,835,967 18,151,237 TOTAL EQUITY 18,835,967 18,151,237
32 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 The accompanying notes form part of these financial statements. 10 STATEMENT OF CHANGES IN EQUITY For the Year Ended 31 May 2022 2022 EarningsRetained Total Balance at 1 June 2021 18,151,237$ 18,151,237$ Profit attributable to members of the Company 684,730 684,730 Other comprehensive income -Total comprehensive income for the year 684,730 684,730 Balance at 31 May 2022 18,835,967 18,835,967 2021 EarningsRetained Total Balance at 1 June 2020 $ 16,264,343 $ 16,264,343 Profit attributable to members of the Company 1,886,894 1,886,894 Other comprehensive income Total comprehensive income for the year 1,886,894 1,886,894 Balance at 31 May 2021 18,151,237 18,151,237
33PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 The accompanying notes form part of these financial statements. 11 STATEMENT OF CASH FLOWS For the Year Ended 31 May 2022 2022 2021 Note $ $ Cash Flows from Operating Activities Receipts from customers 12,549,348 14,783,313 Payments to suppliers and employees (10,905,014) (11,062,870) Interest received 293 874 Interest paid (760) (50,718) Net cash provided by (used in) operating activities 1,643,867 3,670,599 Cash Flows from Investing Activities Proceeds from sale of property, plant and equipment 27,149 Purchase of property, plant and equipment (3,010,044) (730,360) Net cash provided by (used in) investing activities (2,982,895) (730,360) Cash Flows from Financing Activities Proceeds from borrowings 266,490 787,643 Repayment of borrowings (795,106) (539,979) Net cash provided by (use in) financing activities (528,616) 247,664 Net cash increase (decreases) in cash and cash equivalents (1,867,644) 3,187,903 Cash and cash equivalents at beginning of financial year 4,819,178 1,631,275 Cash and cash equivalents at end of year 4 2,951,534 4,819,178
The financial report is for Port Macquarie City Bowling Club Limited as an individual entity, incorporated and domiciled in Australia. Port Macquarie City Bowling Club Limited is a Company limited by guarantee.
(c) Property, Plant and Equipment
Summary of Significant Accounting Policies Basis of Preparation
Plant and equipment Plant and equipment are measured on the cost basis less accumulated depreciation and any accumulated impairment losses.
34 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS
Note
The financial statements were approved and authorised for issue on 27 July 2022 by the Directors of the Company. 1
Ended 31 May 2022 12
The Company has been granted an exemption from income tax under Section 50 45 of the Income Tax Assessment Act 1997 The exempt status of the Company applies indefinitely or until such time as a change in circumstances warrants a review of the exempt status.
Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where applicable, accumulated depreciation and any impairment losses.
In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised in profit or loss. An assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(g) for details of impairment).
(b) Inventories
Accounting Policies
Property Freehold land and buildings are measured on the cost basis less accumulated impairment losses and accumulated depreciation for buildings.
Inventories are measured at the lower of cost and net realisable value.
For the Year
(a) Income Tax
The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards Simplified Disclosures of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied, unless otherwise stated.
The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date the Company commits itself to either the purchase or sale of the asset.
Poker machine licences
The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Buildings and freehold improvements 2.5 20% Plant and Equipment 10 50%
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.
35PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 13 Note 1
Summary of Significant Accounting Policies (continued)
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss in the period in which they arise.
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities on the statement of financial position.
Trade receivables are initially measured at the transaction price.
(f) Financial Instruments
(d) Intangible Assets
Initial Recognition and Measurement
The depreciable amount of all fixed assets, including buildings and capitalised leased assets but excluding freehold land, is depreciated on a straight line basis over their useful lives to the Company commencing from the time the asset is held ready for use. Depreciation is recognised in profit or loss
Poker machine licences are recognised at cost of acquisition. Poker machine licences are tested annually for impairment and carried at cost less accumulated impairment losses.
(c) Property, Plant and Equipment (continued)
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
(e) Cash and Cash Equivalents
Depreciation
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred.
Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified at "fair value through profit or loss" in which case transaction costs are expensed to profit or loss immediately.
The effective interest rate is the internal rate of return of the financial asset or financial liability, that is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition. Financial assets
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant period.
• the right to receive cash flows from the asset has expired or been transferred; • all the risks and rewards of ownership of the asset have been substantially transferred; and • the Company no longer controls the asset.
On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.
Impairment of Financial Assets
Financial liabilities
Derecognition
Financial assets comprising cash and cash equivalents, trade and other receivables and interest bearing deposits are subsequently measured at amortised cost as they meet the following conditions:
36 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 14 Note 1 Summary of Significant Accounting Policies (continued) (f) Financial Instruments (continued) Classification and Subsequent Measurement
• the financial assets are managed solely to collect contractual cash flows; and • the contractual terms within the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates.
Derecognition of financial assets
Financial liabilities are subsequently measured at amortised cost using the effective interest method.
Financial assets are subsequently measured at amortised cost.
The Company recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost.
A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability, is treated as an extinguishment of the existing liability and recognition of a new financial liability.
All of the following criteria need to be satisfied for derecognition of a financial asset:
Derecognition of financial liabilities
The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non cash assets transferred or liabilities assumed, is recognised in profit or loss.
A financial asset is derecognised when the Company's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.
(h) Employee Benefits
Impairment testing is performed annually for intangible assets with indefinite useful lives. Poker machine licences Poker machine licences have been determined to have indefinite useful lives as the Company has no intention to sell poker machine licences.
Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.
Provision is made for the Company's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting Contributionsrequirements. are made by the Company to employee superannuation funds and are charged as expenses when incurred.
(i) Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.
Recognition of expected credit losses in financial statements
(f) Financial Instruments (continued) Impairment of Financial Assets (continued)
At each reporting date, the Company recognises the movement in the loss allowance as an impairment gain or loss in the statement of comprehensive income.
At the end of each reporting period, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is recognised in profit or loss.
(g) Impairment of Non Financial Assets
37PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 15 Note 1 Summary of Significant Accounting Policies (continued)
Revenue is recognised when control of the goods and services has transferred to the customers. For such transactions, this is the point in time when the goods are delivered to the customers or the services are received by customers. Interest revenue is recognised using the effective interest method.
(k) Revenue Recognition
(n) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
(j) Trade and Other Payables
38 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 16 Note 1 Summary of Significant Accounting Policies (continued)
Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.
Trade and other payables are carried at amortised cost and represent the liabilities for goods and services received by the Company during the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Trade and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
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 ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.
(m) Goods and Services Tax (GST)
Receivables are recognised when items are delivered or services received, as at this point consideration is unconditional since only time needs to pass before payment of that consideration is due.
(l) Borrowing Costs
Included in provisions is an amount provided for poker machine bonus points. The amount provided represents the aggregate balance of poker machine bonus points accrued as at 31 May 2022, however it is unlikely that the aggregate balance of the bonus points will be redeemed in full.
(p) New and Amended Accounting Standards Adopted by the Company
The Company assesses impairment at the end of each reporting period by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value in use calculations which incorporate various key assumptions. No impairment has been recognised in respect of assets at reporting date.
Key Estimates - Impairment
The entity has adopted AASB 1060: General Purpose Financial Statements Simplified Disclosures for For Profit and Not for Profit Tier 2 Entities for the first time this reporting period. The Standard, which sets out a new separate disclosure Standard to be applied by all entities that are reporting under Tier 2 of the Differential Reporting Framework in AASB 1053: Application of Tiers of Australian Accounting, replaces the previous Reduced Disclosure Requirements (RDR) framework. The application of this standard has resulted in reductions in disclosures compared to RDR in Revenue, Leases and Financial Instruments; however has resulted in new and/or increased disclosures in areas such as Audit Fees and Related Parties.
Key Judgements - Provisions
AASB 1060: General Purpose Financial Statements Simplified Disclosures for For Profit and Not-for-Profit Tier 2 Entities
39PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 17 Note 1 Summary of Significant Accounting Policies (continued) (o) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company.
40 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 18 Note 2 Revenue and Other Income The Company has recognised the following amounts relating to revenue in the statement of comprehensive income. 2022 2021 Note $ $ Continued operations Sale of goods 2(a) 4,682,031 4,951,493 Other sources of revenue 2(b) 7,303,859 8,542,634 11,985,890 13,494,127 (a) Revenue Disaggregation The revenue is disaggregated along the following product lines: Bar sales 2,607,393 2,892,347 Cafe sales 2,074,638 2,059,146 Total Sales Revenue 4,682,031 4,951,493 Timing of revenue recognition Goods and services tranferred to customers: at a point in time 4,682,031 4,951,493 (b) Other Sources of Revenue Bingo 67,452 73,532 Bistro rental - 33,760 Commissions and rebates 437,814 407,012 Green and competition fees 91,892 109,775 Government funding Cash Flow Boost - 50,000 Government funding Jobkeeper Payments - 612,000 Government funding JobSaver 322,242 Interest received 293 874 Members' subscriptions 106,257 112,670 Other revenue 349,175 180,926 Poker machines (net of payouts) 5,928,734 6,962,085 Total Other Revenue 7,303,859 8,542,634
41PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 19 Note 3 Profit for the year (a) Expenses 2022 $ 2021 $ Cost of goods sold Bar trading 989,313 1,071,832 Cafe trading 768,782 778,410 1,758,095 1,850,242 Finance Costs Interest expense 760 50,718 Depreciation Buildings and improvements 432,201 421,050 Plant and equipment 758,175 768,335 1,190,376 1,189,385 Note 4 Cash and Cash Equivalents Cash at bank and on hand 2,951,534 4,819,178 Reconciliation of Cash Cash and cash equivalents at the end of the financial year as shown in the reconciled to items in the statement of financial position as follows: statement of cash flows are Cash and cash equivalents 2,951,534 4,819,178 Note 5 Trade and Other Receivables Current Trade and other receivables 314,042 157,105
42 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 20 Note 6 Inventories 2022 2021 $ $ FinishedCurrent Goods at Cost Bar and cafe stock 83,506 72,002 Note 7 Other Assets Current Prepayments and other assets 26,571 19,679 Note 8 Intangible assets Poker Machine Licences Poker machine licences at cost 84,000 84,000 (a) Movements in Poker Machine Licences Opening balance 84,000 84,000 DisposalsAdditions Closing balance 84,000 84,000
43PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 21 Note 9 Property Plant and Equipment 2022$ 2021$ Land and Buildings Freehold land Freehold land at cost 3,144,871 3,144,871 Total freehold land 3,144,871 3,144,871 Buildings and freehold improvements Buildings and freehold improvements at cost 20,400,658 18,323,957 Less accumulated depreciation (8,111,816) (7,679,615) Total buildings and freehold improvements 12,288,842 10,644,342 Total land and buildings 15,433,713 13,789,213 Plant and Equipment Plant and equipment at cost 11,806,148 11,237,297 Less accumulated depreciation (9,573,831) (8,815,682) Total plant and equipment 2,232,317 2,421,615 Total property, plant and equipment 17,666,030 16,210,828 (a) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Buildings and Freeholdland improvementsfreehold Plant Equipmentand Total $ $ $ $ Balance at 1 June 2021 3,144,871 10,644,342 2,421,615 16,210,828 Additions 2,076,701 596,026 2,672,727 Disposals (27,149) (27,149) Depreciation expense - (432,201) (758,175) (1,190,376) Balance at 31 May 2022 3,144,871 12,288,842 2,232,317 17,666,030
44 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 22 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 Note 10 Trade and Other Payables UnsecuredCurrent liabilities Note 2022$ 2021$ Trade payables 276,103 643,789 Other payables and accrued expenses 700,308 737,421 976,411 1,381,210 Note 11 UnsecuredCurrentBorrowingsliabilities Other equipment loans 11(d) 158,924 115,324 Secured liabilities Bank loans 11(a)(b)(c)(d) 19,400 609,718 Government loan 24,526 Total current borrowings 202,850 725,042 Non UnsecuredCurrentliabilities Other equipment loans 11(d) 142,320 104,368 Secured liabilities Bank loans 11(a)(b)(c)(d) 27,262 47,112 Government loan 11(a)(b)(d) 375,474 400,000 Total non-current borrowings 545,056 551,480 Total borrowings 747,906 1,276,522 (a) Total current and non-current secured liabilities Bank loans 46,662 656,830 Government loan 400,000 400,000 446,662 1,056,830 (b) Carrying amounts of non current assets pledged as security Freehold land 9 3,144,871 3,144,871 Buildings and freehold improvements 9 12,288,842 10,644,342 Plant and equipment 9 2,232,317 2,421,615 17,666,030 16,210,828
The Special Disaster Bushfire Recovery loan provided by the New South Wales Rural Assistance Authority is secured by a registered second mortgage over the freehold land of the Company. 129,560 128,268
Note 12 Other Liabilities Current Subscriptions and income in advance
Other Equipment Loans
45PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 23 Note 11 Borrowings (continued) (c) Financial assets pledged as security Financial assets that have been pledged as part of the collateral for the benefit of the bank loan are as follows: 2022 2021 Note $ $ Cash and cash equivalents 4 2,951,534 4,819,178 Trade and other receivables 5 314,042 157,105 3,265,576 4,976,283 (d) Collateral Provided Bank Loans and Bank Overdraft Facilities
Government Loan
The bank loans are secured by a registered first mortgage over the freehold land and buildings of the Company, and a fixed and floating charge over the assets and uncalled capital of the Company. The Club maintains bank overdraft facilities totaling $100,000 with its banker. The facilities were unutilised as at 31 May 2022. The bank overdrafts are secured by a first mortgage over freehold properties owned by the Club and a fixed and floating charge over the business.
Equipment loans are unsecured and comprise of finance contracts for the purchase of poker machines with 1 3 year terms. The loans are interest free.
46 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 24 Note 13 Provisions Employeebenefits provisionsOther Total $ $ $ Opening balance at 1 June 2021 363,978 61,577 425,555 Additional / (utilised) provisions 16,661 (6,377) 10,284 Balance at 31 May 2022 380,639 55,200 435,839 Analysis of Total Provisions Employee Benefits Current 2022 $ 409,452 2021 $ 401,062 Non current 26,387 24,493 435,839 425,555 Provision for Employee Benefits Provision for employee benefits represents amounts accrued for annual leave and long service leave.
The current portion for the provision includes the total amount accrued for annual leave entitlements and amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. These amounts are classified as current liabilities since the Company does not have an unconditional right to defer settlement of these amounts in the event employees wish to use their leave entitlement.
The non current portion of the provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.
47PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 25 Note 14 Capital and Leasing Commitments (a) Capital Expenditure Commitments Contracted commitments for: 2022$ 2021$ Buildings and improvements 1,380,376 Payable:notlater than one year 1,380,376 between one year and five years later than five years -- 1,380,376 Note 15 Key Management Personnel Compensation Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any Director (whether executive or otherwise) of that entity. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The aggregate compensation of key management personnel during the financial year comprising amounts paid or payable or provided for was as follows: Short term employee benefits 211,011 179,782 Post employment benefits 17,380 13,591 Other long term benefits Termination benefits 228,391- 193,373 Note 16 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. Note 17 Auditors' Remuneration Remuneration of the auditor for: Auditing the financial statements 22,000 21,500 Other non assurance services 4,250 4,200 26,250 25,700
48 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2022 26 Note 18 Financial Risk Management The Company's financial instruments consist mainly of deposits with banks, cash on hand, accounts receivable and payable, bank loans and other borrowings. The carrying amounts for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these financial statements, are as follows: 2022 2021 Note $ $ Financial Assets Financial Assets at Amortised Cost Cash and cash equivalents 4 2,951,534 4,819,178 Trade and other receivables 5 314,042 157,105 Total financial assets 3,265,576 4,976,283 Financial Liabilities Financial Liabilities at Amortised Cost Trade and other payables 10 976,411 1,381,210 Bank loans 11 46,662 656,830 Other equipment loans 11 301,244 219,692 Government loan 11 400,000 400,000 Total financial liabilities 1,724,317 2,657,732 (a) Net fair values The net fair values of financial assets and financial liabilities approximates their carrying values. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements. Note 19 Company Details The registered office and principal place of business of the Company is: Port Macquarie City Bowling Club Limited 4 Owen Street Port Macquarie NSW 2444
2. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
1. The financial statements, comprising the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and notes to and forming part of the financial statements, are in accordance with the Corporations Act 200J and: (a) comply with Australian Accounting Standards Simplified Disclosures and (b) give a true and fair view of the financial position of the Company as at 31 May 2022 and of its performance for the year ended on that date.
49PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 Port Macquarie City Bowling Club Limited ABN 71 001 056 211 27 DIRECTORS’ DECLARATION
In accordance with a resolution of the Directors of Port Macquarie City Bowling Club Limited, the Directors of the Company declare that:
Chairp Christopher KING Dated: 27 July 2022
INDEPENDENT AUDITOR'S REPORT
We have audited the financial report of Port Macquarie City Bowling Club Limited, which comprises the Statement of Financial Position as at 31 May 2022, the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the Directors' Declaration.
To the Members of Port Macquarie City Bowling Club Limited Opinion
In our opinion, the accompanying financial report of Port Macquarie City Bowling Club Limited is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Company's financial position as at 31 May 2022 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards AASB 1060: General Purpose Financial Statements Simplified Disclosures for For Profit and Not for Profit Tier 2 Entities and the Corporations Regulations 2001 Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Information Other than the Financial Report and Auditor's Report Thereon
The Directors are responsible for the other information. The other information comprises the information included in the Company's annual report for the year ended 31 May 2022, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
50 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 PaulPARTNERSFahey B Bus CA Bart Lawler B Com CA Patrick Brennan B Com CA Alison McKinnon B Bus CA
Auditor’s Responsibilities for the Audit of the Financial Report
• 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.
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 AASB 1060: General Purpose Financial Statements Simplified Disclosures for For Profit and Not for Profit Tier 2 Entities and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of a financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
51PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 PaulPARTNERSFahey B Bus CA Bart Lawler B Com CA Patrick Brennan B Com CA Alison McKinnon B Bus CA INDEPENDENT AUDITOR'S REPORT
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
Responsibilities of the Directors for the 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:
To the Members of Port Macquarie City Bowling Club Limited
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
• 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.
•
52 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 PaulPARTNERSFahey B Bus CA Bart Lawler B Com CA Patrick Brennan B Com CA Alison McKinnon B Bus CA INDEPENDENT AUDITOR'S REPORT To the Members of Port Macquarie City Bowling Club Limited Auditor’s Responsibilities for the Audit of the Financial Report (continued)
• 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, 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.
We
NorthCorp Accountants Darren Johnson Lead Auditor 10-12 Short Street Port Macquarie NSW 2444 Dated: 27 July 2022
53PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 NOTES
4 OWEN ST PORT MACQUARIE P 6583 1133 | PORTCITY.COM.AU
