ABN 97 480 072 940 Reg No: A0015279D
158th ANNUAL REPORT and
FINANCIAL STATEMENTS for the
Year Ended 30 June 2017 OFFICE BEARERS Commodore: Vice Commodore: Rear Commodore: Club Captain: Treasurer:
Chris Williams Peter Alexander Phil Francis Greg Sinclair Brian Marshman
BOARD MEMBERS Chris Manton Tom Boland Stuart Dickson Simon Guthrie Brenton Carnell Christie Alberts
Royal Geelong Yacht Cub 158th Annual Report and Financial Statements Year Ended 30 June 2017
CONTENTS Commodore’s Report
2-3
Treasurer’s Report
4
Membership Summary
5
Royal Geelong Yacht Club & Controlled Entities Financial Statements
6-19
Marina Management Geelong Pty Ltd Financial Statements
20-30
Bay City Marina Geelong Pty Ltd Financial Statements
31-40
Sail Victoria Pty Ltd Financial Statements
41-48
1
Commodore’s Report 2017 The Royal Geelong Yacht Club Board has had a constant focus on our Club’s stated purpose: “To be one of Australia’s cornerstone yachting and boating clubs, hosting world class events and home to the nation’s best sailors”. Our Club is the 2017 Victorian Yacht Club of the Year and the Discover Sailing Centre of the Year! These awards are a very pleasing recognition of all that we have done to develop the programs and activities at the Club. The time, skill and dedication to the Club by so many RGYC Members is fundamental to such success – well done everyone! The Board has maintained a very strong focus on sailing in regular Club racing and 10 successful regattas for a wide range of yacht classes. The Viper Worlds, Hansa Asia Pacific Championships, State titles in the following classes: Optimists, Laser Masters and Fireballs, the Noelex Australian Championships and our annual Springsail were highlights of the season. Competitors and visitors were very happy with the standard of racing and the friendly atmosphere at RGYC. The skilful work of our volunteers and staff is recognised by every sailor who visits our Club. Congratulations to everyone involved. RGYC Members have also taken on the challenges in events such as the Cadet Worlds in Argentina (2016) and the Netherlands (August 2017), the Laser Masters in Japan, 49er Worlds in Canada, many State and National titles and the Sydney-Hobart Race. Well done to all the sailors and their support teams. The 2017 Festival of Sails was held a week earlier than usual in response to the international cycling event on the waterfront and the funding provided to the Festival. The number of keelboat entries was down and the feedback from competitors and RGYC Members was strongly of the view that it should return to the Australia Day focus. The Board was able to make the required change with the essential support of the major funding providers. Despite the difficulties with this year’s Festival date, it was an enjoyable event with a strongly positive financial result. Planning for the 2018 Festival of Sails is well underway and it will be a great celebration of the 175th anniversary of the Passage Race. Membership numbers are steady and participation in yacht racing remains at similar levels to recent years. We have responded to the changing nature of sailing and the competing demands on people’s time. RGYC Members agreed to modify the Club Rules to encourage adult Off the Beach sailors to retain their membership and increase participation in sailing. Investment in learn to sail programs has continued so that we grow the pool of future sailors. The past year has seen us in a strong financial position with no long term debt. The Board has paid close attention to rising energy and insurance costs and has sought competitive prices in numerous cost centres. We have also increased reserves on term deposit to a level not seen before. Our Club has the financial support of many local and national business partners and their contribution to our successes is gratefully acknowledged. Our major events are also strongly supported by the Victorian Government and the City of Greater Geelong. Thank you. Geelong Waterfront Safe Harbour Precinct Project (GWSHP) is the master plan for the redevelopment of the Geelong waterfront. It has been a very public project for the Victorian Government and we continue to press our case for funding support. The recent decision by the Australian Government not to allocate money from the Building Better Regions Fund was disappointing but we have not been idle in the months leading up to that announcement. We take every opportunity to apply for funding when new grant programs are announced. We have recently applied for $2 million from the Regional Jobs and Infrastructure Fund (Australian Government) and are very active in seeking funds from the Australian Government “Cities Deal” for Geelong as well as other State Government funds. 2
The documentation required for the application for $3.5 million from the Shared Facilities Fund (Victorian Government) focused on the OTB / Sailing School building has been completed. This will lead to a Ministerial decision in a short time. We still hold funding commitments of $4 million from the Victorian Government and $3 million from the City of Greater Geelong. We have met the City Administrators recently to discuss how the funding timeline can be managed to suit the needs of the Project. Our club has a once in a lifetime opportunity to use this support to significantly improve our facilities for members and visitors and particularly to provide a long-term solution our safe harbour issues. Dredging the basin and its approaches saw the removal of a very large amount of material deposited from the city’s storm water drain outlet near the boat ramp. The seaward approach to the basin was deepened as well as the areas not dredged a few years ago. Some large pieces of concrete and old wharf piles were also removed, further improving boat access. RGYC has also been awarded International Clean Marina Accreditation Level 3, which reflects our dedication to environmental best practice across our entire marina operations. Our community involvement through activities such as Sailability, Sailing for the Vision Impaired, the St. Ayles Skiffs building project (funded by Victorian Government) and the Wooden Boat Festival is well supported by our Members and appreciated by the many participants. The 2017-2020 Strategic Plan adopted by the Board sets challenging but achievable goals with specific initiatives in the six key areas. I encourage Members to play an active part in the delivery of the Strategic Plan. The RGYC Foundation continues its great work in its quest to meet its purpose to maintain, improve and develop the sport of sailing at RGYC. I strongly encourage our Members, past and present, to consider the range of opportunities that the Foundation provides to assist in the growth and development of our club. Our RGYC staff, led by General Manager Phil Clohesy, have been recognised by the Board for their skill and commitment. I thank all the staff for their support for the Club, our Members and our visitors. They have been major contributors to our success. We are in a period of rapid change in sailing and in our city so the Club has had to adapt to the new circumstances and take opportunities not previously available. If we do not act, we still have to take responsibility for the decision to do nothing while all around us is changing. It is better for the Club to take control of its future than to be passive and have others make decisions for us. I reach the end of my time as Commodore after a total of eight very active and constructive years on the Board. I have enjoyed leading the introduction of events (such as Corio Cruisers), programs and policies to support the Club and its Members. Most pleasing is the sight of our Members creating their own new experiences and successes in sailing, boating and social activities with the support of the Board and fellow Members. I wish the incoming Board every success in further developing the sailing and boating programs, facilities and social events for the wide range of interests of all RGYC Members. Chris Williams Commodore
3
Treasurer’s Report 2017 I report to the members of Royal Geelong Yacht Club on the financial results for the year ending 30th June 2017. The year has seen a most successful result with a consolidated Net Profit of $57622 compared with last year’s Loss of $34235. This represents an improvement of $91857 over the previous year and I can further report that it is the best result in the last 10 years. The net cash surplus has increased from $287363 in 2016 to $371732 in 2017. Funds now held on Term deposit with Bendigo Bank at June 30th are $704787 compared with $578746 last year. Capital expenditure for the year, which included the dredging of the basin, amounted to $341626 compared with $211967 in 2016 and together with the transfer of funds to our term deposit, put some pressure on our short term cash requirements. The Club is and remains debt free and is in a sound position to undertake any future redevelopment. Festival of Sails resulted in a net benefit to the Club of $90841 compared with $16220 in 2016 despite lower than expected entries, but higher sponsorship income. Membership subscription income has been slightly lower than the previous year and can be put down partly by a transfer of more members to the Silver category from Gold and a lower than expected uptake of new members. Many members who had completed 40 years continuous membership were transferred this year to the Veteran rate and this will have an impact on the current year’s subscription levels, but is also pleasing to have so many loyal members. The following is a summary of the Club’s operations, extracted from our audited accounts: 2017 Net Operating Profit
2016
2015
2014
57,622
(34,235)
30,435
54,234
Depreciation
298,300
286,627
272,720
313,724
Amortization
14,986
12,504
16,669
13,905
824
22,467
23,780
2,915
Movement in Provisions Net Cash Surplus
371,732
287,363
343,604
388,378
FOS Revenue
1,007,631
887,458
861,663
887,532
FOS Surplus
90,841
16,220
57,561
24,908
Capital Expenditure
341,626
211,967
296,273
402,924
Invested funds
704,787
578,746
514,003
252,250
Brian Marshman FCPA Hon. Treasurer
4
MEMBERSHIP SUMMARY
Male Female
Male Female
Male Female Male Female Male Female Male Female
2017 Platinum Honorary Life 10 1 Platinum 50 Year 41 6 Platinum Veteran 40 2 Gold 316 8 Silver Voting 1 36 Silver 330 141
2016 Platinum Honorary Life 9 1 Platinum 50 Year 38 7 Platinum Veteran 44 3 Gold 344 7 Silver Voting 1 37 Silver 323 145
Male Female
Male Female
Male Female Male Female Male Female Male Female 2017 1152
TOTAL MEMBERS
2017
2016
Bronze
Bronze
22 10
16 5
Blue
Blue
67 30 Leave of Absence 30 7 Gold Corporate 6 0 Silver Corporate 23 9 OTB Senior 15 1
68 34 Leave of Absence 20 8 Gold Corporate 5 0 Silver Corporate 26 9 OTB Senior 0 0
2016 1150
Obituary It is with great sadness and regret that we record the passing during the year of the following esteemed members: Anita Allen Neil Campigli Don Fagg John Evans John Lindros
Joined 1950 Joined 1955 Joined 2003 Joined 2016 Joined 1961
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
WE THANK OUR MAJOR PARTNERS
AND OUR CLUB AND EVENT PARTNERS