Port City Bowling Club 2019/20 Annual Report

PORT MACQUARIE CITY BOWLING CLUB

Annual Report & Financial Statements YEAR END MAY 2020

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

CONTENTS Page NOTICE TO MEMBERS

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NOTICE OF SPECIAL RESOLUTIONS

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CHAIRMAN’S REPORT

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C.E.O’S REPORT

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DIRECTORS’ REPORT

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AUDITOR’S INDEPENDENCE DECLARATION

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STATEMENT OF COMPREHENSIVE INCOME

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STATEMENT OF FINANCIAL POSITION

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STATEMENT OF CHANGES IN EQUITY

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STATEMENT OF CASH FLOWS

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NOTES TO THE FINANCIAL STATEMENTS

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DIRECTORS’ DECLARATION

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INDEPENDENT AUDITOR’S REPORT

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PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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Annual Report and Financial Statement For The Year Ended May 31st, 2020

OFFICE BEARERS CHAIRMAN Chris King DEPUTY CHAIRMAN Mark Parry DIRECTORS Wayne Evans Judy Scholz Leigh Hardingham Paul Brady Michael Hayes Jeff Pattinson ACTING CEO Glen Stewart OPERATIONS MANAGER Glen Stewart FINANCE MANAGER Matthew Swain AUDITORS Northcorp Accountants

Reception: (02) 6583 1133 Bowls: (02) 6583 1153

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PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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NOTICE THE ANNUAL GENERAL MEETING WILL BE HELD IN THE CLUB’S FUNCTION ROOM ON SATURDAY 5th SEPTEMBER 2020 at 9:30AM AGENDA BUSINESS OF THE MEETING SHALL INCLUDE: 1. Confirmation of minutes from the previous Annual Meeting.

2. To receive reports from the Board of Directors.

3. To receive and consider the Annual Report and Financial Report for the year ended 31st May 2020 including the Independent Auditor’s Declaration and Audit Report.

4. To receive and if thought fit, pass the Special Resolutions contained in the Notice of Special Resolutions attached to this Notice of Annual General Meeting.

5. To receive and if thought fit, 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: i) Members who are employees of the Club are not entitled to vote. ii) Proxy voting is prohibited.

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.

Ordinary Resolution No. 1 – Honorariums for Directors Pursuant to the Registered Clubs Act 1976, the Members hereby authorise, for the period preceding the next Annual General Meetings, payment of the following honorarium at the expense of the Club, as recommended by the Board, in recognition of services rendered to the Club.

CHAIR $7,000.00

VICE CHAIR $5,000.00

The remaining five (5) Director’s receive an honorarium of $4,000.00 each for the year.

All honorariums are to be paid pro-rata to their service.

All honorariums, at the discretion of the Board, may be paid in installments (i.e. monthly or quarterly) in arrears.

All honorariums are to be considered all-inclusive.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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Explanatory Note An Honorarium may only be paid when approved by a resolution passed at a General Meeting.

The adoption of this resolution by the Members will confirm the amount paid as honorariums at the expense of the Club in recognition of special honorary services rendered to the Club for the period preceding the next Annual General Meeting and meet the requirements of the Corporations Act 2001 & the Registered Clubs Act 1976.

The Club’s Constitution requires subject to the provisions of the Registered Clubs Act, a member of the Club, whether or not he/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.

It is at the discretion of each Director as to whether or not they accept the honorarium.

The adoption of this resolution by the Members meets the requirements of our Constitution the Corporations Act 2001 & the Registered Clubs Act 1976.

The level of the honorarium remains the same as the previous year. An independent review of honorariums is to be conducted early 2021.

Ordinary Resolution No. 2 – Expenditure for Directors 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 provisions of: (a) The reasonable cost of light snacks during Board meetings. (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 which activities and the expenses are approved by the Board before payment or reimbursement is made on the production of proper documentation of expenditure. (c) Reasonable expenses for the holding of an annual end of term office dinner for the Board of Directors, their special guests and dignitaries. (d) The reasonable cost of attending General Meetings and training seminars of ClubsNSW Club Director’s Institute and any other recognised association within the Registered Club’s Industry as may be determined by the Board from time to time. (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 4

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determined by the Board from time to time. (f) Directors & Officers Insurance Policy. (g) The reasonable cost of apparel (for example monogrammed shirt or blouse) as required for the use of Directors when representing the Club. (h) The reasonable cost of an electronic device (for example laptop computer or tablet or similar device ) being made available in respect of their duties as directors of the Club. (i) The reasonable cost of Directors membership of professional associations such as “NSW Club Directors Institute”.

The Members acknowledge that the benefits above are not available to Members generally but only those Members who are Directors of the Club.

Explanatory Note Director’s out-of-pocket expenses reasonably incurred in the course of 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 types of expenses likely to be incurred.

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.

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 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.

The amount of Director expenses shown in the Club’s accounting records for 2020 is $8,495.00 (2019 $10,122.00).

The adoption of this resolution by the Members meets the requirements of the Club’s Constitution, the Corporations Act 2001 & the Registered Clubs Act 1976.

Ordinary Resolution No. 3 – 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 (i) (a) Reasonable sum towards the cost of travel, accommodation, and allowances, if required, for successful pennant teams involved in State Pennant Finals. (b) Reasonable sum towards assisting with the provision of a supporters Coach or similar to attend successful pennant team State Pennant Finals.

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(c) Reasonable sum towards the cost of travel accommodation and allowances for bowlers who represent the Club in State & National Final events. (d) Reasonable facilities and services in relation to bowling activities of the Sub Clubs. (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 Club’s facilities and services. (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. 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 at all times 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.

Explanatory Note 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.

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 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.

The amount of costs incurred as shown in the Club’s accounting records for State Pennant Finals is for 2020 $19,761.00 (2019 $nil).

The trading statement on Bowls as shown in the accounting records reveals a loss of $220,804.00 for 2020 (2019 $202,058.00).

The adoption of this resolution by the Members meets the requirements of the Clubs Constitution Corporations Act 2001 & the Registered Clubs Act 1976.

Ordinary Resolution No. 4 – Honorariums for Committees of the Club – 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 subsidiary Clubs (namely the Men’s Bowling Club and Women’s Bowling Club) the payment of the following honorariums as recommended by the Board in recognition of services rendered by the committee of those Sub Clubs.

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Men’s Committee: President

$2,000.00

Secretary

$1,500.00

Treasurer

$1,500.00

The remaining five (5) Committee Members to receive an honorarium of $1,000.00 each.

Women’s Committee: President

$1,500.00

Secretary

$1,000.00

Treasurer

$1,000.00

The remaining eight (8) Committee Members to receive an honorarium of $200.00 each.

All honorariums are to be paid pro-rata to their service.

All honorariums are to be considered all-inclusive.

Explanatory Note An Honorarium may only be paid where approved by a resolution passed at a General Meeting of the Club Ltd. The adoption of this resolution by the Members will confirm the amount paid as honorariums at the expense of the respective Sub Club of the Club in recognition of special honorary services rendered to the Sub Club for the period preceding the next Annual General Meeting and meet the requirements of the Corporations Act 2001 & the Registered Clubs Act 1976.

The Club lawyers have advised that even if there is no strict need to obtain approval for these honorariums, modern corporate governance would require that all honorariums paid by the Sub Clubs be approved in accordance with the Registered Clubs Act. Accordingly, the Board has submitted this resolution to satisfy corporate governance standards and as additional transparency.

The Clubs Constitution requires that a Member of the Club, whether or not he/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.

It is at the discretion of each committee member as to whether or not they accept the honorarium.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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All Honorariums are at the recommendation of the respective Sub Club Committees.

It is essential to remember that all monies held by the Sub Clubs remain the property and responsibility of Club Ltd. The level of the honorarium remains the same as the previous year. An independent review of honorariums is to be conducted early 2021.

The adoption of this resolution by the Members meets the requirements of our Constitution the Corporations Act 2001 & the Registered Clubs Act 1976.

Ordinary Resolution No. 5 – Non-Monetary Benefits for Sub Club Committees 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 Subsidiary Clubs of the Club (namely the Men’s Bowling Club and the Women’s Bowling Club) the payment of, or reimbursement of, expenditure reasonably & properly incurred in carrying out Sub Club activities by Committee Members, subject to the discretion of the Board, of the following: • Reasonable costs of travel for Committee Members attending District and Zone meetings.

• Reasonable expenses for the conduct of an end of term of office dinner for the Sub Club Committees and special guests.

• Reasonable cost of apparel (e.g. monogrammed shirt) as required for the use by Committee Members when carrying out their duties.

The Members acknowledge that the benefits above are not available to Members generally but only to those Bowling Members who are Committee Members of the respective Sub Clubs.

Explanatory Note 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 a specific class of Member is only permissible with a current authorisation from a General Meeting.

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.

Following advice from the Club’s lawyers, it is essential to remember that all monies held by the Sub Clubs remain the property & responsibility of Club Ltd. Ordinary Resolution No. 6 – Sub Club Benefits for Bowling Members 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 subsidiary Clubs (namely the Men’s Bowling Club and the Women’s Bowling Club) the payment of, or reimbursement of, expenditure reasonably and 8

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properly incurred in carrying out bowling activities, at the discretion of the Board, for the following: • Cash payments at the recommendation of the Sub Club Committee for Bowling Members who are championship winners.

• 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 way of Member Reward points. Such benefits are to be at the discretion of the CEO. This includes catering, working bees, maintenance, umpiring, and marker duties.

• Reasonable contribution towards the cost of food and beverages for Bowling Members and guests at special events.

• Reasonable contribution towards the cost of travel expenses for Pennant and State Championship events for Bowling Members.

The Members acknowledge that these benefits are not available to Members generally but only those Members who are Bowling Members of the Club.

Explanatory Note 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 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. 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.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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NOTICE OF SPECIAL RESOLUTIONS FOR ANNUAL GENERAL MEETING NOTICE is hereby given that during the Annual General Meeting of the PORT MACQUARIE CITY BOWLING CLUB LIMITED to be held on Saturday 5th September, 2020 commencing at 9:30am at the premises of the Club, 4 Owen Street, New South Wales.

PROCEDURAL MATTERS FOR SPECIAL RESOLUTIONS 1. The following members can vote on the Special Resolutions: (a) Life members. (b) Financial Bowling members who have been members of the Club for a continuous period of at least twelve (12) months. (c) Financial Social members who have been members of the Club for a continuous period of at least twelve (12) months.

2. To be passed, a Special Resolution must receive votes in favour from three quarters (75%) of those members who, being eligible to do so, vote in person on the Special Resolution at the meeting.

3. Under the Registered Clubs Act: (a) Members who are employees of the Club are not entitled to vote. (b) Proxy voting is prohibited.

4. Amendments to a Special Resolution (other than minor typographical corrections which do not change the substance or effect of the Special Resolution) will not be permitted from the floor of the meeting.

FIRST SPECIAL RESOLUTION [The First Special Resolution is to be read in conjunction with the notes to Members set out below.]

That the Constitution of Port Macquarie City Bowling Club Limited be amended by: (a) deleting Article 42(d) and in its place inserting the following new Article 42(d):

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“If an election for Directors is required, the election shall be conducted in such usual and proper manner as the Board shall determine from time to time and such an election may be held during the Club’s Annual General Meeting, or before the Annual General Meeting on the Club’s premises, or by a postal ballot, PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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or by use of electronic voting means, or a combination of any of these methods of voting.”

Notes to Members on First Special Resolution 1. The Club’s Articles of Association currently provide that the election of Directors will take place at the Annual General Meeting or on the Club’s premises prior to the Annual General Meeting or through a postal ballot.

2. The Articles do not provide or contemplate a method of electronic voting.

3. However, having regard to the challenges posed by the COVID-19 pandemic, the Board proposes the first special resolution to allow for electronic voting.

4. In addition to the current circumstances, a number of clubs have already introduced electronic voting to allow for a greater number of members to participate. A number of specialist returning officer companies operate secure electronic voting methods.

5. Accordingly, the Board is recommending the First Special Resolution to deal with the current situation, but also ensure the Club is best able to conduct Board elections into the future.

SECOND SPECIAL RESOLUTION [The Second Special Resolution is to be read in conjunction with the notes to members set out below.]

That the Constitution of Port Macquarie City Bowling Club Limited be amended by: (a) deleting Article 34 and its place inserting the following new Article 34: “(a) The Board shall consist of seven (7) Directors. (b) Up to two (2) Social members may be Directors at any one time. (c) The seven (7) directors of the Board will be elected by members in accordance with Articles 35 to 42. (d)

The directors will elect a Chairperson and Deputy Chairperson of the Board from among their own number following each Annual General Meeting in accordance with Article 42(f). Any director may be elected by the Board to the positions of Chairperson or Deputy Chairperson.”

Notes to Members on Second Special Resolution 1. The Second Special Resolution proposes to amend the eligibility requirements for the positions of Chairperson and Deputy Chairperson.

2. Currently, the Articles provide that the Board consists of seven (7) Directors, being a Chairperson, a Deputy Chairperson and five (5) ordinary directors. The Articles also provide that no more than two (2) Social Members may be Directors at any one time.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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3. However, Social Members cannot be elected positions of Chairperson and Deputy Chairperson.

4. If the Second Special Resolution is passed, Social Members will be eligible to be elected by the Board to the positions of Chairperson and Deputy Chairperson.

Dated: 24/07/2020

By direction of the Board

Glen Stewart

Acting Chief Executive Officer

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CLUB LIMITED PATRON MEMBER Robert Langham CLUB LIMITED LIFE MEMBERS Ron Limbert, Bob Kane, Neville Schwartz, Rex Holihan MEN’S BOWLING CLUB LIFE MEMBERS Reg Lucas, Noel Paterson, Terry Schollum WOMEN’S BOWLING CLUB LIFE MEMBERS Norma Schwartz, Frances Green, Robyn Biddle, Shirley Devine

Port City Bowling Club is proud to support community, sporting, social and charity groups – your local supporting our locals!

BNI NSW North Coast & New England

Port Macquarie Bridge Club Inc.

Mixed Probus Club of the Hastings

Port Macquarie Landcare Group Inc.

Linked Community Services

Port Macquarie Senior Computer Group Inc.

Port City Travelling Bowlers

Rotary Club of Port Macquarie Sunrise

Hastings Public School

Zone 8 RSL Bowlers Association

Port Macquarie Animal Welfare Service Inc.

Port City Men’s Bowling Club

Hastings Valley Vikings Rugby Union

Port City Women’s Bowling Club

Cancer Council NSW

Port Macquarie Dog Club Inc.

Probus of Oxley NSW

Probus Club of Port Macquarie Inc.

Port Macquarie Blue Water Fishing Club

Mid North Coast Retired Police Association

News Watch Discussion Group

Hastings Cancer Trust

Hastings Fly Fishers

Give Me 5 for Kids

Port City Hockey Club

A.I.R Gentle Exercise

Port Macquarie Heritage Car Club

Nations Seniors Australia Ltd.

Port City Leagues Magpies Cricket Club

A.I.R Investor Education

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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CHARIMAN’S REPORT Hope this report meets you safe and well.

At the outset, I would like to pass on the Board’s sincere condolences to the families and friends of Members who have passed away over the last 12 months.

This year has been different to any other in the history of our Club, as we endured drought, fires and the Covid-19 pandemic, but we have so far managed through these and congratulations to everyone that has been involved in our wonderful Club.

The Board were particularly busy during the shutdown, ensuring the needs of our staff were met and that the Clubs financial impact was minimised in terms of managing our expenses and taking advantage of government support. Fortunately, our financial holdings and the governments JobKeeper Program enabled us to meet our debts and retain our wonderful staff. As well as introducing a hardship policy to assist staff in need of financial assistance, Board members along with the management team maintained regular contact with all staff and offered their assistance. The JobKeeper Program which we commenced paying once legislation was passed also enabled us to utilise staff for urgent cleaning and maintenance work throughout the Club, while shutdown.

During this unprecedented time the Board also continued to advocate for your Clubs future through regular liaison with stakeholders and regulators, including ClubsNSW, our local member and other clubs.

The pandemic has highlighted the need to review our priorities and appreciate that what was once considered a normal operating Club environment is no longer the case and that the Club industry doesn’t expect to recover for at least 18 months.

Supporting your Club now has never been more important.

Since reopening, patronage has been down which is to be expected but we do appreciate the support we have received from our Members, particularly in complying with the health and hygiene conditions while on Club premises. However, it is important that we all remain vigilant to avoid a second wave and risk being shut down again.

Even with these challenges our main focus is still about consolidating on the 2016 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.

This includes the extension of our Drift Café which as Members will know has outgrown its current kitchen and seating capacity. As a result, the Board approved plans to be drawn up and submitted to council for the provision of an outside al fresco dining facility with some 60 additional seats and a working kitchen environment that will meet our needs well into the future. We are pleased to announce we have received council approval for the renovations and have now put the call out for tenders. Construction is expected to commence by October this year.

As I have previously reported this extension will mean taking out 3-4 rinks of the current number 1 green. As a result, you will recall that the Board approved a synthetic green for the remainder of this green and which incorporated the existing smaller 14

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green. However, due to the financial impact of the Club shutdown and the urgent need to replace the older section of the Club’s roof, at an estimated cost of $400,000 this may need to be deferred. We need to minimise any borrowings and prioritise accordingly.

This will enable us time to build on our financial holdings and use this area to generate revenue during the Spring and Summer seasons, while maintaining some bowls presence. On that note we did seek out what government grants are available to assist us and will continue to do so. Including a $10,000 working capital grant and a building grant to enclose the BBQ area adjacent to the small green as well as provide bar facilities.

We now have around 9,718 Members as of 24th June 2020, the Board decided to go ahead with membership renewals whilst the Club was temporarily closed and to great success raising estimated $50,000 during this period. The Board would like to thank all those who renewed during this period and appreciate your support and encourage those that have not yet renewed to do so. During our forced closure the Club did exceed budget targets for revenue in bar, Keno, TAB and Drift Café. However, with the shutdown this has culminated in a small audited trading profit of $52,281 the past year.

Understandably, our overall visitor numbers have decreased due to Covid-19.

I can also report that our variable loan has been extinguished and our fixed loan currently stands at $879,329. On that note we did take advantage of the loan repayment deferral offered by our banker during the shutdown to assist in reducing our outgoings. However, 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.

While doing this we need to continue building on our brand and our vision as being a locally owned family entertainment venue with excellent bowling facilities. Especially during these uncertain times. As we start to move out of these restrictions we cannot stand still and 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 accommodation as a possible line of alternative income the timing of this will now need to be reviewed in line with our recovery, especially given this comes at significant costs, requires a lot more planning, stakeholder involvement and most importantly, funding and input from our Members. We will keep you informed as we continue to explore this possibility.

Feedback I continue to receive is that our Members are very proud of their Club.

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.

Like other Clubs gaming continues to be impacted by digital technology, particularly in regard to on-line gaming and there is a greater reliance on fewer regular people PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

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playing machines.

While doing the above your Club has and will continue to support community groups though donations and the grants program. This year formed a strategic partnership with Willing and Able Foundation and a sister Club relationship with Quirindi Bowling Club. On that note I would like to thank our Members for their generous donations to our drought relief effort to assist people in Quirindi and locally to Sister Marjorie’s and the Anglican Soup Kitchen. The Club provided almost $82,442 in grants including $21,000 to Willing and Able Foundation. The Club will also continue to sponsor and support local sporting groups. These sponsorships have proved to be successful with all parties benefiting from the arrangement.

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. Board members this year have also attended the ClubsNSW annual conference, CDI regional seminars and during the shutdown, virtual meetings with ClubsNSW to keep us abreast of what is happening in the Club industry and network with other Clubs to share experiences.

The Bowls Coordinator in collaboration with the Men’s and Women’s Bowling Clubs have again done a fantastic job in putting on events to encourage new Members and increasing participation levels, including events that support very worthy causes, such as Corporate Jack Attack competition for drought relief, Cancer Council, Give Me 5 For Kids, Sailability and bush fire appeal. Even during the shutdown, they organised roll ups for Members under strict Covid-19 conditions. Unfortunately, a number of Men’s and Women’s tournaments were cancelled this year but hopefully this will change as we begin to recover from the pandemic.

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.

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. I accept that we are a bowling club, but the future of bowls may mean making some difficult decisions and seeking further input from Members. However, clearly some things need to change as the current operating model and participation numbers are not sustainable in terms of our investment in bowls. This year, even with the shutdown the Club supported bowls to the extent of in excess of $220,000. We hear regularly about the fate of other bowling clubs and we don’t want to be next.

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. While we defer our plans for no.

1 green, I welcome any suggestions you may have in this regard. Including, whether we continue to need and maintain three and a half greens rather than focus our resources on the other two greens.

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I would like to take this opportunity to thank our previous CEO Russell Stockham for his service to the Club and for helping to put us in a position that facilitated a better recovery. Since his departure I would also like to thank our acting CEO Glen Stewart.

Glen’s management of his team and his assistance to the Board during the shutdown has been much appreciated and guided our recovery. Our search for a CEO was put on hold during the shutdown but I am pleased to say has now recommenced.

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.

I would also like to thank our auditors, NorthCorp and pleased that we have received an unqualified audit report for the past 12 months.

I welcome all our new Members and thank all our loyal Members for supporting us over the past years, especially during these uncertain times. I am sure you will continue to enjoy your Club as we endeavour to achieve our vision of being the best bowling and entertainment venue on the Mid North Coast.

In closing it would be remiss of me not to thank my Board of Directors for the support they have given me and the results they have achieved this year. A lot of time and effort goes into being a director, particularly during the Covid-19 shutdown and the fact we have managed to come out of this so well is testament to their input. I would like to extend a particular thank you to Leigh Hardingham, who resigned earlier this year, for his valuable contribution to the Club. The Board appointed Jeff Pattinson to fill the casual vacancy created by Leigh. Jeff previously served on our Board and appreciate that he was able to hit the ground running and assist us during these unprecedented times. To finish my report I would like to thank fellow Board Members Judy Scholz, Wayne Evans and Paul Brady for their contribution to the Club during their time on the Board and wish them the best of luck if they choose to re-elect.

Kind regards C K King Chairman

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

17

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

CEO’S REPORT I can safely say that the 2019/20 financial year has been one like no other for everyone and the effects of the COVID-19 virus have been felt significantly in the Club industry. Port Macquarie’s locally owned and run Club has been no different, in February the Club had approximately $450,000 in profit accumulated and was well on track to exceed budget with 3 months left to trade. Even with the forced closure of the Club I am pleased to report that we have recorded an audited profit of $52,281 versus a revised budget figure of $62,468 (and an original forecast profit of $443,075).

In achieving the profit for the financial year, the Club revenue in its core trading areas achieved the following: • Bar revenue - $2,717,338 down 12% • Net Gaming clearances - $5,034,396 down 18% • Café sales - $1,602,906 down 11% • Keno commissions - $112,386 down 21% • TAB commissions – $42,683 down 26% It is evident from these figures that the COVID-19 pandemic has resulted in a significant downturn in trade the major limitations were limited seating in Drift, every second gaming machine turned off and all areas being limited to numbers per floor space. These have limited us to a minimal profit with the business being closed for over 2 months and still having fixed costs while closed. When compared to the previous year the Club’s total revenue decreased by $1,522,138 or 12.5%.

We have seen a reduction in total costs of $1,230,846 due to the closure and cost reduction measures. This will be an ongoing area of review for the Management of the Club as we continue to come out of the lockdown period.

The Club had an EBITDA of $1,293,035 at 12.1% for the financial year. This is down on previous years and is the focus for management for the upcoming year. As a Management team we will be reviewing our gaming offering and looking to grow our loyalty program, renovating Drift Café for additional seating capacity and expanding our food offering, as well as investigating and reviewing some of our current costs for savings. Cash generated by the Club operating activities was $948,026 down $722,251 on the previous year. After the purchase of property, plant and equipment, repayment of loans and the forced closure period, the Club only had a net decrease in cash and cash equivalents of $26,371 for the year. The Club loan for the renovations has been reduced to $879,329.

The trading year also saw memberships increase to 16,475 an increase of 474 compared to last year.

During the closure period and the introduction of the JobKeeper program by the Federal Government, we were able to utilise the 44 staff members who were eligible for JobKeeper. The staff undertook maintenance around the Clubhouse that was well over due such as painted the greens shed and bowls shed, tables & skirting boards in 18

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

Drift, a deep clean of all bars along with the cellar. We also resurfaced the bowls ramp with a new non slip flooring and surrounds painted.

During the lockdown period the Board approved to proceed with the extension of Drift café.restaurant. Plans and designs have been lodged with council, this development will increase the kitchen size and include alfresco dining which will increase the seating capacity by approximately 60. The Board are also looking at further development of the Entertainment Lounge to use as a more multi- purpose room for events, functions and entertainment. This will be reviewed at the completion of the Drift café.restaurant renovation.

This year we saw the Ladies Grade 4 & Grade 1 Pennant sides played in the state finals at Kingscliff with the Ladies grade 1 finishing in 5th position in the state.

The Men’s Grade 7 Pennant team also won the Zone 14 Title and represented Port City in the state playoffs. We had several Individual performances this year with Max Glasse selected to represent the Australian Blind Bowlers in the Trans-Tasman and world (Australian) Championships and Kylie Hardy & Phil Baker were placed 3rd in the state mixed pairs. Port City also held the NSW Fire Brigade State Titles this year and are holding them for the next few years which is a great event to showcase our great Club.

It would be remiss of me not to mention and thank Russell Stockham for his efforts and guidance over the last 7 years, his leadership has contributed to the Club’s strong financial position. As always, I am proud to be a part of the team as they continue to grow and provide exceptional service to our Members. The Club again reached the finals of the Port Macquarie Business Awards and has maintained Trip Advisor rating from last year. Our social media pages are full of praise for our staff and it is well deserved.

I would also like to express my thanks to Chairman Chris King and his fellow Directors for their guidance and support during this year. It has been a very productive year and the Board will continue to update and review Club policies as well as undertake thorough investigations of the options for the use of Club property and possible alternate income streams.

Lastly, to you our Members, thank you for your support over the last 12 months and we look forward to ensuring we stay one of the premier entertainment venues on the Mid North Coast.

Glen Stewart Acting CEO

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

19

PortRTMacquarie Bowling ANNUAL REPO & F IN A NC I A LCity S TAT EM ENTS –Club YEAR Limited EN D 31ST M AY 2020 ABN 71 001 056 211

DIRECTORS' REPORT 31 May 2020 Your Directors present their report on the Company for the financial year ended 31 May 2020.

Directors The names of the Directors in office at any time during or since the end of the financial year are: Christopher KING Mark PARRY Wayne EVANS Judy SCHOLZ Paul BRADY Michael HAYES Jeff PATTINSON Leigh HARDINGHAM

(Appointed 27/04/2020) (Resigned 25/04/2020)

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 short-term objectives of the Company are to: •

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;

•

Provide entertainment, food and beverages for the members and visitors at reasonable prices.

Long-Term Objectives The long term objectives of the Company are to: •

Increase the Club's membership;

•

Extend, renovate and improve the Club's facilities;

•

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.

1

20

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

PortRTMacquarie ANNUAL REPO & F IN A NC I A LCity S TATBowling EM ENTS –Club YEAR Limited EN D 31ST M AY 2020 ABN 71 001 056 211

DIRECTORS' REPORT 31 May 2020 Strategies To achieve the objectives of the Company the following strategies have been adopted: •

Retain and engage suitably qualified and experienced employees to provide the best possible service and maintain the Club's facilities;

•

Provide entertainment, bowls tournaments and promotions to attract patronage to the Club;

•

Offer high quality, reasonably priced meals and beverages;

•

Conduct promotions throughout the year for the benefit of members and their guests;

•

Annual development of financial budgets and monthly monitoring of financial performance and financial position to ensure the Club operates within its financial capabilities.

Principal Activities 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.

Means by which Principal Activities Assisted in Achieving the Company's Objectives The profit and cash flows generated from the Company's principal activities were utilised in achieving the Company's objectives.

Key Performance Measures 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 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 2020 there were 16,475 members with a collective liability of $329,500.

Auditor's Independence Declaration 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.

2

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

21

PortRTMacquarie ANNUAL REPO & F IN A NC I A LCity S TATBowling EM ENTS –Club YEAR Limited EN D 31ST M AY 2020 ABN 71 001 056 211

DIRECTORS' REPORT 31 May 2020 Significant Changes in State of Affairs On 11 March 2020, the World Health Organisation declared a global pandemic in relation to the COVID-19 virus.

On 23 March 2020, registered clubs in New South Wales were ordered to close in accordance with State and Federal Government initiatives to reduce the spread of the virus.

The disruption to business, resulting from the implementation of government measures to reduce the risk of COVID-19 in the community, has had an adverse impact on the revenue and profitability of the Company for the year ended 31 May 2020. However, it is not practicable to provide a reliable estimate of the financial effect of this event on the operations of the Company as at the date of this report.

Events After the Reporting Period After balance date, on 1 June 2020, the Company recommenced trading subject to compliance with certain requirements of the New South Wales Public Health Act, including adherence to social distancing rules.

Measures to reduce the spread of COVID-19 are expected to have a continuing detrimental impact on revenue and profitability during the 2021 financial year. However, due to the uncertainty in relation to the extent of containment of the virus it is not possible to reliably estimate the effect of the matter on the operations of the Company in future financial years.

No other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

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.

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.

3

22

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Eligible to attend Number attended Eligible to attend Number attended

15 15 15

15 15 15

15 -

15

15

15

15

1

14 1

15 -

DIRECTORS' REPORT

ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

-

14

31 May 2020

Directors' Meetings

15 -

15 -

al year, 52 meetings of Directors (including committees of Directors) were held. Attendances by each Director during the year were as Executive Committee

-

-

-

-

-

-

3 -

5 5

-

3

3

-

-

3

3

-

-

-

-

5

-

-

3

-

-

5

-

-

-

3

5

5

5

5

Eligible to attend

-

5

5

5

Number attended

-

-

Number attended

3 5 5

5 5

3 3 3

5 5

-

5 5

-

5 5

-

5 5

5 5

5 5

-

Eligible to attend

-

Number attended

-

Eligible to attend

5

5

5

5

Number attended

5

-

5

5

5

Risk and Audit Committee

-

-

14

14

Leigh HARDINGHAM

-

1

Jeff PATTINSON

-

3

3

4

-

-

3

3

4

3

-

-

-

-

-

14

-

15

Michael HAYES

-

-

3

-

3

-

3

1

-

15

15

Paul BRADY

-

-

-

-

4

Number attended

-

-

-

-

-

4 3

5

Eligible to attend

-

3

3

4

-

-

15

15

Judy SCHOLZ

-

-

14

3

15

Eligible to attend

-

-

15

15

Wayne EVANS

4

4

15

Number attended

Number attended

Building Committee

Eligible to attend

Remuneration Committee

Policy Committee

15

15

15

15

Mark PARRY

15

15

15

Christopher KING

3

Eligible to attend

-

Number attended

4

Eligible to attend

-

Number attended

-

Eligible to attend

-

Risk and Audit Committee

-

Number attended

Policy Committee

-

Eligible to attend

Executive Committee

-

-

8

-

5

8

-

5

Eligible to attend

-

-

8

-

5

8

-

5

4

Number attended

Constitution and

By Laws Committee

ors

Directors' Meetings

During the financial year, 52 meetings of Directors (including committees of Directors) were held. Attendances by each Director during the year were as follows:

Meetings of Directors

AM

PortRT Macquarie Bowling ANNUAL REPO & F IN A NC I ACity L S TAT EM ENTS –Club YEARLimited EN D 31ST M AY 2020 DIRECTORS' REPORT

ABN 71 001 056 211

31 May 2020

Remuneration Committee Building Committee

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

23

C E a

City Bowling Limited ANNUAL Port REPO Macquarie RT & F IN A NC I A L S TAT EM ENTS Club – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

DIRECTORS' REPORT 31 May 2020 Information on Current Directors Christopher KING Qualifications Experience Special Responsibilities

Mark PARRY Qualifications Experience Special Responsibilities

Wayne EVANS (OAM) Qualifications Experience Special Responsibilities

Commerce Certificate Diploma, Certificate III in Corporate Governance, Justice of the Peace, Member Club Directors Institute, CDI Mandatory Courses completed.

Director Port City Bowling Club 6 years, Past member of 3 Boards in Western Sydney, Vice President Port Macquarie Blue Water Fishing Club, President Willing & Able Foundation, Director Linked Community Services.

Chairperson of the Board of Directors Executive Committee Risk and Audit Committee Policy Committee Remuneration Committee Club Grants Committee Constitution and By Laws Committee Building Committee

Public Practicing Accountant as a senior manager for 15 years, Owner and Operator of the Federal Hotel Temora, Member Club Directors Institute, CDI Mandatory Courses completed.

Director of Port Macquarie City Bowling Club 4 years.

Deputy Chairperson Executive Committee Risk and Audit Committee Club Grants Committee Remuneration Committee Building Committee Retired Magistrate, Non practising Barrister, Member Club Directors Institute, CDI Mandatory Courses completed.

Director of Port Macquarie City Bowling Club for 6 years.

Disciplinary Controller Workplace Health and Safety Board Delegate Constitution and By Laws Committee Building Committee

5

24

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

DIRECTORS' REPORT 31 May 2020 Information on Current Directors (continued) Judy SCHOLZ Qualifications Experience Special Responsibilities

Paul BRADY Qualifications Experience

Special Responsibilities

Michael HAYES Qualifications

Experience Special Responsibilities

Owner and Operator Bookkeeping business for over 20 years, Certificate IV in Accounting and Communications, Member of Club Directors Institute, CDI Mandatory Course completed.

Director Port City Bowling Club 3 years, President of La Trobe Valley Softball Association, Treasurer of La Trobe Valley Badminton Association, Treasurer of Port Macquarie City Women’s Bowling Club.

Risk and Audit Committee Constitution and By Laws Committee Building Committee

Officer in Australian Army for 30 years, Workplace Health and Safety Manager, Member of Club Directors Institute, CDI Mandatory Courses completed.

Director Port City Bowling Club 3 years, President and Director Warringah Bowling Club, President Australian Services Bowls Association, Vice President Port Macquarie RSL Sub Branch, Committee Member of Port Macquarie City Men’s Bowling Club for 10 years and President for 7 years.

Workplace Health and Safety Board Delegate Club Grants Committee Constitution and By Laws Committee Building Committee

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 Governance completed.

Director of Port Macquarie City Bowling Club for 6 years, Auditor, Advisor and Officer Holder to numerous registered clubs, sporting association and charities.

Risk and Audit Committee Policy Committee Constitution and By Laws Committee Board Assessment Facilitator Building Committee Remuneration Committee

6

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

25

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

26

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

27

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 31 May 2020 2020

Note 2

Revenue Changes in inventories Inventories purchased Advertising and promotion Bingo and raffle prizes Bowls expenses Depreciation Donations Electricity and gas Employee benefits expense Entertainment Finance costs Insurance Other poker machine expenses Poker machine supplementary tax Rates and taxes Repairs and maintenance

2019

$

3 3

3

3

Other expenses

$

10,632,715

12,154,853

(23,661) (1,600,260) (924,173) (110,208) (71,039) (1,189,172) (150,453) (249,442) (3,303,922) (277,217) (53,168) (154,658) (148,750) (948,481) (196,178) (515,807)

(6,352) (1,888,395) (797,199) (161,846) (27,936) (1,231,638) (201,881) (291,971) (3,621,368) (354,486) (83,630) (191,213) (144,476) (1,186,274) (265,504) (688,797)

(663,845)

(668,314)

(10,580,434) (11,811,280) Profit before income tax Income tax expense

1(a)

Profit for the year Other comprehensive income for the year

52,281 -

343,573 -

52,281

343,573

-

-

Total comprehensive income for the year

52,281

343,573

Profit attributable to members of the entity

52,281

343,573

Total comprehensive income attributable to members of the entity

52,281

343,573

The accompanying notes form part of these financial statements.

28

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

9

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

STATEMENT OF FINANCIAL POSITION As at 31 May 2020

Note

2020

2019

$

$

ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Other assets

1,631,275 238,558 73,027 27,443

1,657,646 227,427 96,688 110,499

1,970,303

2,092,260

84,000 16,281,211

84,000 17,086,722

Total non-current assets

16,365,211

17,170,722

TOTAL ASSETS

18,335,514

19,262,982

572,755 723,458 120,442 319,992

894,829 736,079 150,810 321,130

1,736,647

2,102,848

305,400 29,124

882,534 65,538

334,524

948,072

4 5 6 7

Total current assets Non-current assets Intangible assets Property, plant and equipment

8 9

LIABILITIES Current liabilities Trade and other payables Borrowings Other current liabilities Short-term provisions

10 11 12 13

Total current liabilities Non-current liabilities Borrowings Long-term provisions

11 13

Total non-current liabilities TOTAL LIABILITIES

2,071,171

3,050,920

NET ASSETS

16,264,343

16,212,062

EQUITY Retained earnings

16,264,343

16,212,062

TOTAL EQUITY

16,264,343

16,212,062

The accompanying notes form part of these financial statements.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

10

29

PortRT Macquarie Bowling ANNUAL REPO & F IN A NC I ACity L S TAT EM ENTS –Club YEAR Limited EN D 31ST M AY 2020 ABN 71 001 056 211

STATEMENT OF CHANGES IN EQUITY For the Year Ended 31 May 2020

2020

Balance at 1 June 2019

Retained Earnings $ 16,212,062

Total $ 16,212,062

52,281 -

52,281 -

Profit attributable to members of the Company Other comprehensive income Total comprehensive income for the year

52,281

52,281

16,264,343

16,264,343

Retained Earnings $ 15,868,489

Total $ 15,868,489

Profit attributable to members of the Company Other comprehensive income

343,573 -

343,573 -

Total comprehensive income for the year

343,573

343,573

16,212,062

16,212,062

Balance at 31 May 2020 2019

Balance at 1 June 2018

Balance at 31 May 2019

The accompanying notes form part of these financial statements.

30

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

11

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

STATEMENT OF CASH FLOWS For the Year Ended 31 May 2020

Note Cash from operating activities: Receipts from customers Payments to suppliers and employees Interest received Interest paid

2020

2019

$

$

11,543,282 13,287,265 (10,543,674) (11,536,893) 1,586 3,535 (53,168) (83,630)

Net cash provided by (used in) operating activities

948,026

1,670,277

Cash flows from investing activities: Purchase of property, plant and equipment

(384,642)

(665,178)

Net cash provided by (used in) investing activities

(384,642)

(665,178)

Cash flows from financing activities: Proceeds from borrowings Repayment of borrowings

94,750 (684,505)

78,840 (705,868)

Net cash provided by (use in) financing activities

(589,755)

(627,028)

Net cash increase (decreases) in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of year

4

(26,371) 1,657,646

378,071 1,279,575

1,631,275

1,657,646

The accompanying notes form part of these financial statements.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

12

31

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 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.

Note 1

Summary of Significant Accounting Policies

Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.

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 financial report was authorised for issue on 7 July 2020 by the Board of Directors.

Accounting Policies (a)

Income Tax

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. (b)

Inventories

Inventories are measured at the lower of cost and net realisable value. (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Property Freehold land and buildings are measured on the cost basis less accumulated impairment losses and accumulated depreciation for buildings.

Plant and equipment Plant and equipment are measured on the cost basis less accumulated depreciation and any accumulated 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 the statement of comprehensive income. An assessment of recoverable amount is made when impairment indicators are present (refer to Note 1( g) for details of impairment).

13

32

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 1 Summary of Significant Accounting Policies (continued) (c) Property, Plant and Equipment (continued) Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

Depreciation 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.

The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Buildings and freehold improvements Plant and Equipment

Depreciation Rate 2.5 - 20% 10 - 20%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

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.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in the statement of comprehensive income in the period in which they arise. (d)

Intangible Assets

Poker machine licences 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. (e)

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (f)

Financial Instruments

Initial Recognition and Measurement 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.

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.

Trade receivables are initially measured at the transaction price.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

14

33

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 1 Summary of Significant Accounting Policies (continued) (f) Financial Instruments (continued) Classification and Subsequent Measurement Financial liabilities Financial liabilities are subsequently measured at amortised costs using the effective interest method.

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 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 Financial assets are subsequently measured at: •

amortised cost; or

•

fair value through other comprehensive income.

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: •

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 Derecognition of financial assets 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.

•

All of the following criteria need to be satisfied for derecognition of a financial asset:

•

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.

On derecognition of a financial asset classified under fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the financial asset reserve is not reclassified to profit or loss, but is transferred to retained earnings.

Impairment of Financial Assets The Company recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost.

A loss allowance is not recognised for investments measured at fair value through other comprehensive income.

15

34

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Limited ANNUAL REPO RTMacquarie & F IN A NC I A LCity S TATBowling EM ENTS – Club YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 1 Summary of Significant Accounting Policies (continued) (f) Financial Instruments (continued) Impairment of Financial Assets (continued) Recognition of expected credit losses in financial statements 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.

The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset.

Financial assets measured at fair value through other comprehensive income are recognised at fair value with changes in fair value recognised in other comprehensive income. The amount in relation to change in credit risk is transferred from other comprehensive income to profit or loss at the end of the reporting period. (g) Impairment of Non-Financial Assets 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 expensed to the statement of comprehensive income.

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.

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.

16

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

35

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 1 Summary of Significant Accounting Policies (continued) (h)

Employee Benefits

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 oncosts. 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 requirements.

Contributions are made by the Company to an employee superannuation fund 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 recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (j) Trade and Other Payables 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. (k)

Revenue Recognition

The Company has applied AASB 15: Revenue from Contracts with Customers using the cumulative effective method. Therefore, the comparative information has not been restated and continues to be presented under AASB 118: Revenue. No impact is shown in relation to the initial adoption of AASB 15 as the Directors have assessed that there is no material difference in the result of the Company between applying AASB 118: Revenue and AASB 15.

In accordance with AASB 15, revenue continues to be 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.

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

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.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

17

36

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 1 Summary of Significant Accounting Policies (continued) (m)

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian 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.

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, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (n)

Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (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.

Key Estimates - Impairment 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 Judgements - Provisions 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 2020, however it is unlikely that the aggregate balance of the bonus points will be redeemed in full. (p)

Adoption of new and revised accounting standards

Initial Application of AASB 15: Revenue from Contracts with Customers The Company has adopted AASB 15: Revenue from Contracts with Customers with a date of initial application of 1 June 2019. As a result, the Company has changed its revenue recognition accounting policy as detailed Note 1 (k).

No impact is shown in relation to the initial adoption of AASB 15 as the Directors have assessed that there is no material difference in the results of the Company between applying AASB 118: Revenue and AASB 15.

18

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

37

PortRTMacquarie Limited ANNUAL REPO & F IN A NC I A LCity S TATBowling EM ENTS – Club YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 2

Revenue and Other Income

The Company has recognised the following amounts relating to revenue in the statement of comprehensive income.

2020 2019 $

Continued operations Sale of goods Other sources of revenue

$

4,320,244 6,312,471

4,896,300 7,258,553

10,632,715

12,154,853

2,717,338 1,602,906

3,086,789 1,809,511

4,320,244

4,896,300

Goods and services tranferred to customers: - at a point in time

4,320,244

4,896,300

(b) Other Sources of Revenue Bad debts recovered Bingo Bistro rental Commissions and rebates Green and competition fees Government funding - Cash Flow Boost Government funding - Jobkeeper Payments Interest received Members' subscriptions Other revenue Poker machines (net of payouts)

104,641 111,367 278,192 102,700 50,000 277,500 1,586 137,337 214,752 5,034,396

2,482 125,287 135,719 350,992 132,179 3,535 123,600 270,105 6,114,654

Total Other Revenue

6,312,471

7,258,553

(a)

2(a) 2(b)

Revenue Disaggregation

The revenue is disaggregated along the following product lines: Bar sales Cafe sales

Timing of revenue recognition

19

38

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 3 (a)

Profit for the year Expenses

Cost of goods sold: Bar trading Cafe trading Finance Costs: Interest expense Depreciation Buildings and improvements Plant and equipment

Note 4

2020

2019

$

$

1,034,769

1,251,136

589,152

643,611

1,623,921

1,894,747

53,168

83,630

421,179 767,993

420,086 811,552

1,189,172

1,231,638

1,631,275

1,657,646

Cash and Cash Equivalents

Cash at bank and on hand Reconciliation of Cash

Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows are reconciled to items in the statement of financial position as follows: Cash and cash equivalents Note 5

1,631,275

1,657,646

238,558

227,427

238,558

227,427

Trade and Other Receivables

Current Trade and other receivables

20

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

39

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 6

Inventories

2020

2019

$

$

73,027

96,688

27,443

110,499

Poker Machine Licences Poker machine licences at cost

84,000

84,000

(a) Movements in Poker Machine Licences Opening balance Additions Disposals

84,000 -

84,000 -

Closing balance

84,000

84,000

Current Finished Goods - at Cost Bar and cafe stock Note 7

Other Assets

Current Prepayments and other assets Note 8

Intangible assets

21

40

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 9

Property Plant and Equipment

2020 $

2019 $

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 Less accumulated depreciation

17,824,839 (7,258,565)

17,764,312 (6,837,386)

Total buildings and freehold improvements

10,566,274

10,926,926

Total land and buildings

13,711,145

14,071,797

Plant and Equipment Plant and equipment at cost Less accumulated depreciation

10,659,901 (8,089,835)

10,379,838 (7,364,913)

Total plant and equipment Total property, plant and equipment

2,570,066

3,014,925

16,281,211

17,086,722

(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 Freehold Plant and freehold Total land improvements Equipment $ $ $ $ Balance at 1 June 2019 3,144,871 10,926,926 3,014,925 17,086,722 Additions 60,527 324,115 384,642 Disposals (981) (981) Depreciation expense (421,179) (767,993) (1,189,172) Balance at 31 May 2020

3,144,871

10,566,274

2,570,066

16,281,211

22

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

41

PortRTMacquarie Limited ANNUAL REPO & F IN A NC I A LCity S TATBowling EM ENTS – Club YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020 Note 10

Trade and Other Payables Note

2020 $

Current Unsecured liabilities Trade payables Other payables and accrued expenses

Note 11

2019 $

32,189 540,566

372,074 522,755

572,755

894,829

54,018

113,758

669,440

622,321

723,458

736,079

19,710

56,696

285,690

825,838

305,400

882,534

1,028,858

1,618,613

955,130

1,448,159

16,281,211

17,086,722

1,631,275 238,558

1,657,646 227,427

1,869,833

1,885,073

Borrowings

Current Unsecured liabilities Other equipment loans Secured liabilities Bank loans

11(d)

11(a)(b)(c)

Total current borrowings Non-Current Unsecured liabilities Other equipment loans Secured liabilities Bank loans

11(d)

11(a)(b)(c)

Total non-current borrowings Total borrowings (a)

Total current and non-current secured liabilities

Bank loans (b)

The carrying amounts of non-current assets pledged as security are:

Property, plant and equipment (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: Cash and cash equivalents Trade and other receivables

42

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211 23

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 11 (d)

Borrowings (continued) Collateral Provided

Bank Loans and Bank Overdraft Facilities 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 2020. 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.

Other Equipment Loans Equipment loans are unsecured and comprise of finance contracts for the purchase of poker machines with 3 year terms. The loans are interest free.

Note 12

Other Liabilities

Current Subscriptions and income in advance

2020

2019

$

$

120,442

150,810

120,442

150,810

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

43 24

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 13

Provisions

Employee benefits

Other provisions

$

$

Total $

Opening balance at 1 June 2019 Additional / (utilised) provisions

344,238 (37,770)

42,430 218

386,668 (37,552)

Balance at 31 May 2020

306,468

42,648

349,116

Analysis of Total Provisions

2020 $

Current Non-current

2019 $

319,992 29,124

321,130 65,538

349,116

386,668

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.

25

44

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 14

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: 2020 2019 $ $ Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits

150,907 11,864 25,035

166,753 12,270 2,167 -

187,806

181,190

Note 15 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 16

Events Occurring After the Reporting Period

On 11 March 2020, the World Health Organisation declared a global pandemic in relation to the COVID-19 virus. On 23 March 2020, registered clubs in New South Wales were ordered to close in accordance with State and Federal Government initiatives to reduce the spread of the virus.

After balance date, on 1 June 2020, the Company recommenced trading subject to compliance with certain requirements of the New South Wales Public Health Act, including adherence to social distancing rules.

Measures to reduce the spread of COVID-19 are expected to have a continuing detrimental impact on revenue and profitability during the 2021 financial year. However, due to the uncertainty in relation to the extent of containment of the virus it is not possible to reliably estimate the effect of the matter on the operations of the Company in future financial years.

No other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

26

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

45

PortRTMacquarie Limited ANNUAL REPO & F IN A NC I A LCity S TATBowling EM ENTS – Club YEAR EN D 31ST M AY 2020 ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2020

Note 17 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: 2020 2019 Note $ $ Financial Assets Financial assets at amortised costs Cash and cash equivalents Trade and other receivables

4 5

Total financial assets Financial Liabilities Financial liabilities at amortised cost Trade and other payables Bank loan Other equipment loans Total financial liabilities

1,631,275 238,558

1,657,646 227,427

1,869,833

1,885,073

572,755 955,130 73,728

894,829 1,448,159 170,454

1,601,613

2,513,442

10 11 11

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 18

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

27

46

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

47

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

48

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

49

ANNUAL REPO RT & F IN A NC I A L S TAT EM ENTS – YEAR EN D 31ST M AY 2020

50

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club 4 Owen Street, Port Macquarie 2444 Club Reception 6583 1133 Bowls Office 6583 1153

www.portcity.com.au