SUSF 2008 Financial Report

SYDNEY UNI SPORT & FITNESS 2008 FINANCIAL REPORT

CONTENTS

CONTENTS 2008 FINANCIAL REPORT

PRODUCED BY: SYDNEY UNI SPORT & FITNESS

01

WELCOME

ADDRESS: CNR OF CODRINGTON STREET AND DARLINGTON ROAD DARLINGTON NSW 2006

02

FINANCE & AUDIT COMMITTEE

03

STATEMENT BY MEMBERS OF THE COMMITTEE

04

INDEPENDENT AUDIT REPORT

06

BALANCE SHEET

08

CONSOLIDATED INCOME & EXPENDITURE STATEMENT

DETAILED INCOME & EXPENDITURE STATEMENTS

EMAIL: admin@sport.usyd.edu.au

09

NOEL MARTIN SPORTS & AQUATIC CENTRE

WEB: www.susf.com.au

10

ARENA SPORTS CENTRE AND HK WARD GYMNASIUM

11

GRANDSTAND SPORTS BAR & CAFE

12

BOATSHEDS

13

GROUNDS

14

ROBYN WEBSTER SPORTS CENTRE

15

CORPORATE & ALUMNI RELATIONS

16

SPORT & RECREATION - CLUBS

17

SPORT & RECREATION - PROGRAMS

18

ELITE ATHLETE PROGRAM - HIGH PERFORMANCE

19

ADMINISTRATION

20

STATEMENT OF CASH FLOWS

21

NOTES TO FINANCIAL STATEMENTS

28

SYDNEY UNIVERSITY SPORT FOUNDATION

32

NOTES

IBC

OUR SPONSORS

POSTAL ADDRESS: UNIVERSITY SPORTS & AQUATIC CENTRE BUILDING G09 UNIVERSITY OF SYDNEY NSW 2006 TELEPHONE: +61 2 9351 4960 FAX: +61 2 9351 4962

This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior permission from Sydney Uni Sport & Fitness.

Requests and enquiries concerning reproduction and rights should be addressed to Sydney Uni Sport & Fitness.

COPIES OF THIS REPORT: Requests for copies of this report can be made to the Marketing Department (marketing@sport.usyd.edu.au) or online www.susf.com.au.

WELCOME

FINANCE & ADMINISTRATION YEAR IN REVIEW

..................... .................... .................... ..................... ................

It gives me great pleasure to present to the Members and Stakeholders the 2008 Annual Financial Report for Sydney University Sport t/a Sydney Uni Sport & Fitness.

The Management of Sydney University Sport has once again continued to strengthen the financial growth of the organisation, being debt free and producing a surplus from operating activities that continues to build the cash reserves, all the while returning a larger amount than ever back to the constituent clubs.

The key financial highlights for the 2008 operating year were:

- Totally equity grew to $7.3 million.

- Overall revenue from operating activities grew to over $10 million.

- Operating surplus to retained earnings of $311 thousand.

- Cash on deposit of $1.9 million with a further $1 million in receivables due from the University of Sydney that was received in February 2009.

- Overall expenditure grew in line with operating activities and budget forecast while remaining under $10 million.

- Reserves and provisions for future infrastructure and capital projects totalling $3 million.

- Funds allocated and provided to constituent clubs totalling $1.4 million.

foundation has been operating under the security and compliance of the University of Sydney I am please to report that its financial position is extremely healthy currently holding $500 thousand in trust for the constituent clubs that have formed divisions of the foundation. These funds are invested through the University of Sydney’s Capital and Investment management team.

I wish to extend my sincere thanks and gratitude to the Finance & Administration team Greg Taylor, Jenny Lawler, Dean Jones and Stephen King for all their hard work and commitment to the quality of the work in the finance team. I would also like to extend my appreciation of thanks to my colleagues, the Senior Managers of Sydney University Sport and in particular the leadership of Robert Smithies our Executive Director. In addition I would like to acknowledge the direction and guidance of the organisations Honorary Treasurer, Patrick Cunningham and President, Bruce Ross who form the Finance & Audit team.

The organisations continued financial strength and confidence is provided with no question from the generous contributions from the University of Sydney’s Senior Administration.

I would like to formally acknowledge in particular the assistance and support of Deputy Chief Financial Officer, Paul Slater and his Corporate Finance team, as well as the Chief Accountant, Piyush Bhatt and his team.

Mostly the organisation owes an enormous debt of gratitude to DVC, Professor Andrew Coats and the team of the External Relations portfolio.

Tony Jackson Finance and Administration Manager

This annual financial report also includes the report from the Sydney University Sports Foundation on its 2008 activities. After the

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 1

FINANCE & AUDIT COMMITTEE 2008 Chairperson Mr Patrick Cunningham

Honorary Treasurer

Committee Members Mr Bruce Ross

President

Sydney Uni Sport & Fitness Officers Mr Robert Smithies Mr Tony Jackson

2 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

Executive Director Finance & Administration Manager

STATEMENT BY MEMBERS OF THE COMMITTEE

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 3

INDEPENDENT AUDIT REPORT

4 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

2

INDEPENDENT AUDIT REPORT

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 5

3

BALANCE SHEET SYDNEY UNIVERSITY SPORT BALANCE SHEET AS AT 31st DECEMBER 2008 Note

2008 $

2007 $

7,555 1,532,123 327,394 1,867,072

7,000 2,216,477 0 2,223,477

30,000

150,000

1,153,976 932,219 15,909 (30,685)

837,903 201,189 61,526 (33,776)

63,999

41,463

4,032,490

3,481,782

8,081,345

8,231,776

8,081,345

8,231,776

12,113,835

11,713,558

CURRENT ASSETS Cash Cash on hand Cash at Bank Cash at Bank - Trust

Short Term Investment Receivables Account Receivables Constituent Clubs and Miscellaneous Prepayments Provision for Doubtful Debts Inventories Stock on Hand

1(c)

TOTAL CURRENT ASSETS NON CURRENT ASSETS Property,Plant &Equipment TOTAL NON CURRENT ASSETS

TOTAL ASSETS

4

6 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

1(b), 4

BALANCE SHEET SYDNEY UNIVERSITY SPORT BALANCE SHEET AS AT 31st DECEMBER 2008 Note

2008 $

2007 $

13,198 1,765,042 477,960 (74,859) 0

345,207 1,574,320 478,669 (125,904) 0

190,558 36,500 73,700

70,837 0 103,650

2,482,099

2,446,779

54,842 (77,994) 0

34,839 (88,045) 0

143,494 2,177,232

178,858 2,152,232

TOTAL NON-CURRENT LIABILITIES

2,297,574

2,277,884

TOTAL LIABILITIES

4,779,673

4,724,663

NET ASSETS

7,334,162

6,988,895

6,762,880

6,601,272

450,000 121,281

300,000 87,623

571,281

387,623

7,334,162

6,988,895

CURRENT LIABILITIES Creditors and Borrowings Bank Overdraft - Current Trade Creditors & Accruals Income in Advance Trust Funds held for Constituent Clubs University loan - NMRC Provisions Provision for Building Insurance Provision for Coaching Provision for USYD TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Creditors and Borrowings Non-current accruals Income in Advance University loan - NMRC Provisions Provision for Long Service Leave Provision for Building Maintenance

EQUITY Accumulated Funds

Reserves Boat Shed Replacement Club Asset Replacement

TOTAL RESERVES TOTAL EQUITY

1(d)

5

6(a) 6(c)

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 7

5

CONSOLIDATED INCOME & EXPENDITURE STATEMENT SYDNEY UNIVERSITY SPORT CONSOLIDATED INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $

2007 $

INCOME Annual & Life Membership USYD Recurrent Funding Investment Income

639,090 2,076,585 124,020

545,214 1,240,859 147,179

1,194,327 (193,045) 17,765 61,808 (260,574) 27,195 (20,425) (1,444,645) 84,812 (502,387)

693,218 (265,281) 2,948 (147,231) (273,396) 18,973 (29,236) (1,288,344) 107,256 (222,436)

1,804,526

529,723

1,436,159

1,196,436

OPERATING SURPLUS/(DEFICIT) FOR THE YEAR

368,367

(666,713)

Non-Operating Items Profit on sale of Motor Vehicles USYD NMRC Loan Writedown Provision for Taxation Liability

8,254 0 (65,000)

10,285 3,507,289

SURPLUS BEFORE PRIOR YEAR ADJUSTMENT

311,621

2,850,861

Sporting Activities/Facilities Noel Martin Sports & Aquatic Centre Arena & HK Ward Gymnasium Grandstand Sports Bar & Café Boatsheds Grounds Robyn Webster Sports Centre Corporate & Alumni Relations Sport & Recreation - Clubs Sport & Recreation - Programs Elite Athlete Program

Less: EXPENDITURE Administration

Less: Prior year adjustment SURPLUS FOR THE YEAR

6

8 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

0 311,621

2,850,861

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT NOEL MARTIN SPORTS & AQUATIC CENTRE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $ INCOME Less: EXPENDITURE Administration Advertising - Marketing incl.

Credit Card/EFT Charges Chemicals Cleaning Computer Maintenance Depreciation Equipment Purchases Insurance Leased Equipment Long Service Leave Maintenance Power Salaries Staff Uniforms Stationery & Printing Sundry - Centre Sundry - Member Services Superannuation Swim Program Telephone & Postage Water Workers Compensation Insurance

SURPLUS FOR THE YEAR

2007 $

3,314,889

3,092,958

2,027 11,231 18,837 22,819 117,260 7,340 42,968 16,287 7,164 90,747 5,458 119,473 160,525 963,229 20,719 4,792 13,372 33,422 83,714 293,167 11,683 44,724 29,604

1,542 8,257 20,138 7,883 139,222 4,955 292,986 25,676 7,168 126,691 2,072 69,210 153,152 1,039,199 1,555 3,013 13,991 33,601 94,776 281,381 13,848 44,724 14,699

2,120,562

2,399,739

1,194,327

693,219

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 9

7

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT ARENA SPORTS CENTRE & HK WARD GYMNASIUM INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $ INCOME

878,360

969,176

Less: EXPENDITURE ARENA SPORTS CENTRE Advertising Cleaning Credit Card/EFT Charges Computer Expenses Depreciation Equipment Purchases Expenses - Ledge Insurance Leased Equipment Long Service Leave Maintenance Power Salaries - Ledge Salaries - Arena Staff Uniforms Stationery & Printing Sundry Superannuation Telephone & Postage Water Workers Compensation Insurance

0 75,190 5,614 2,022 8,262 3,452 7,174 5,064 63,425 3,292 52,548 24,840 88,734 416,618 633 7,384 19,531 41,800 4,686 14,712 16,596

1,807 82,041 5,054 3,333 113,762 8,287 7,252 5,064 87,214 1,436 73,913 24,840 90,541 412,704 1,150 8,026 19,549 42,527 4,879 14,712 9,652

861,577

1,017,743

731 25,352 816 20,373 2,530 2,556 21,937 12,516 101,507 0 2,310 7,819 3,725 3,828 3,828

553 26,075 1,500 39,724 3,744 2,556 12,079 12,516 98,364 0 1,760 8,564 3,529 3,828 1,923

209,828

216,715

Total Expenses

1,071,405

1,234,458

(DEFICIT) FOR THE YEAR

(193,045)

(265,282)

Less: EXPENDITURE HK WARD GYMNASIUM Credit Card/EFT Charges Cleaning Computer Maintenance Depreciation Equipment Purchases Insurance Maintenance Power Salaries Staff Uniforms Sundry Superannuation Telephone & postage Water Workers Compensation Insurance

8

2007 $

10 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT GRANDSTAND SPORTS BAR & CAFÉ INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $

2007 $

INCOME

59,666

62,798

Less: EXPENDITURE Depreciation Insurance Maintenance Power Provision Building Maintenance Sundry

29,592 1,236 4,309 6,180 584 0

47,190 1,236 4,634 6,180 0 611

Total Expenses

41,901

59,851

SURPLUS/(DEFICIT) FOR THE YEAR

17,765

2,948

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 11

9

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT BOATSHEDS INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $ 141,775

138,699

24,996

150,000

2,604 9,512 4,691 33,172 4,001 78,976

28,604 2,682 3,505 47,388 3,381 235,560

0 0 4,648 888 (4,545) 991

0 (355) 1,676 40,350 8,699 50,370

Total Expenditure

79,967

285,930

(DEFICIT) FOR THE YEAR

61,808

(147,231)

INCOME Less: EXPENDITURE Building Maintenance Provision Glebe Boatshed Depreciation Maintenance Power Rent Sundry Linley Point Boatshed Depreciation Maintenance Power Rent Sundry

12 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

10

2007 $

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT GROUNDS INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $

2007 $

INCOME

698,887

545,560

Less: EXPENDITURE Cleaning Depreciation Fuels & Equipment Insurance Long Service Leave Maintenance Motor Vehicles Power Salaries & Wages Soils and Fertilisers Staff Uniforms Sundry Superannuation Workers Compensation Insurance

2,965 50,745 12,607 47,304 3,384 233,018 5,571 7,224 441,446 96,454 5,814 257 39,424 13,248

8,556 64,914 15,371 47,304 4,112 163,070 6,574 7,181 384,383 68,002 4,333 2,270 34,893 7,994

959,461

818,957

(260,574)

(273,397)

(DEFICIT) FOR THE YEAR

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 13

11

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT ROBYN WEBSTER SPORTS CENTRE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $ INCOME Less: EXPENDITURE Cleaning Depreciation Equipment Purchases Insurance Power - Electricity Rent Salaries Staff Uniforms Stationery & Printing Sundry Superannuation Telephone Workers Compensation Insurance

SURPLUS/(DEFICIT) FOR THE YEAR

14 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

12

2007 $

106,573

82,670

0 564 505 948 0 29,770 43,448 0 0 0 2,369 1,426 348

0 560 149 948 0 27,400 32,034 0 0 0 1,830 1,752 (977)

79,378

63,696

27,195

18,974

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT CORPORATE & ALUMNI RELATIONS INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $

2007 $

INCOME Memberships Annual Sports Function Cricket Luncheon Rugby Function Xmas Hamper Golf Day Barassi Cup AFL Luncheon Alumni Sport Scholarships Sydney Uni Sport Sponsorships

4,785 11,793 14,986 11,225 9,817 12,729 33,020 179,896 278,251

10,494 8,284 22,825 15,621 11,393 18,804 (5,425) 176,185 258,181

Less: EXPENDITURE Administration / Management Club Disbursements

120,536 178,140

116,084 171,333

(DEFICIT) FOR THE YEAR

(20,425)

(29,236)

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 15

13

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT SPORT & RECREATION - CLUBS INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $ 36,000

24,000

Less: EXPENDITURE AUS Games NSWIS Blues Dinner Club Allotments/Grants Club Asset Replacement Insurance (Equipment) Motor Vehicle Salaries Sports Awards Dinner Sundry Superannuation Workers Compensation Insurance

27,288 4,236 14,735 1,205,999 39,930 18,808 16,997 82,305 25,037 9,635 9,263 26,412

20,094 0 17,847 1,035,798 24,740 16,981 11,676 114,725 27,739 10,968 14,299 17,478

Total Expenses

1,480,645

1,312,345

(1,444,645)

(1,288,345)

INCOME

(DEFICIT) FOR THE YEAR

16 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

14

2007 $

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT SPORT & RECREATION - PROGRAMS INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $

2007 $

647,176

685,803

Less: EXPENDITURE Healthworks Expenses Healthworks Salaries

29,043 58,143

41,240 8,723

Recreation Program Expenses Recreation Program Salaries

3,670 46,861

5,082 42,061

68,096 237,503

85,977 178,291

6,302 6,046

11,413 5,006

6,207 401 624 (547) 15,110 405 0 50,282 0 1,388 22,414 10,416

6,944 419 624 5,279 11,095 876 1,131 143,317 82 982 24,387 5,618

562,364

578,547

84,812

107,256

INCOME

Schools Program Expenses Schools Program Salaries Social Sport Expenses Social Sport Salaries Affiliated Campuses Equipment Purchases Insurance Inter Faculty Motor Vehicle Promotional Activities Publications Salaries - Coordinators Staff Uniforms Sundry Superannuation Workers Compensation Insurance

SURPLUS FOR THE YEAR

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 17

15

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT ELITE ATHLETE PROGRAM - HIGH PERFORMANCE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $ INCOME

1,027,731

787,226

Less: EXPENDITURE International Travel Grants Motor Vehicles Scholarships Salaries Superannuation Guarantee Workers Compensation

134,450 17,167 1,064,079 285,620 22,382 6,420

68,420 16,161 694,444 209,242 17,477 3,918

1,530,118

1,009,662

(502,387)

(222,436)

(DEFICIT) FOR THE YEAR

18 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

16

2007 $

DETAILED INCOME & EXPENDITURE STATEMENTS SYDNEY UNIVERSITY SPORT ADMINISTRATION INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2008 2008 $

2007 $

EXPENDITURE Administration & Representation Admin FBT Component Marketing Audit & Consulting Provision for Bad Debts Bank Charges Computer Expenses Depreciation - Office Equipmen Insurance - Office Equipment Insurance - Students Long Service Leave Maintenance & Equipment Motor Vehicles Salaries Security Staff Development Stationery & Printing Sundry Superannuation Telephone & Postage Workers Compensation Insurance DEFICIT FOR THE YEAR

38,257 15,295 239,250 33,898 14,188 12,606 147,126 5,524 7,968 87,698 2,159 8,265 26,025 568,191 24,283 49,134 57,412 10,004 40,955 35,249 12,672

26,978 600 102,122 34,756 37,799 11,237 164,339 10,396 7,968 85,719 2,009 3,643 22,497 491,109 16,391 53,410 44,917 11,259 30,517 32,299 6,470

1,436,159

1,196,435

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 19

17

STATEMENT OF CASH FLOWS SYDNEY UNIVERSITY SPORT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31st DECEMBER 2008 Note

2008 $

2007 $

3,028,486

2,386,289

123,089 4,253,966 993,036 1,564,703 (10,111,789)

141,131 2,598,543 894,594 2,746,401 (5,640,858)

(148,509)

3,126,100

Payments for property, plant and equipment Proceeds from sale of property, plant and equipment

(3,771) 24,799

185,756 10,285

NET CASH USED IN INVESTING ACTIVITIES

21,028

196,041

Transfer to Short Term investment University Loan

(16,915) 0

9,807 (3,507,289)

NET CASH USED IN FINANCING ACTIVITIES

(16,915)

(3,497,482)

Net Increase/(Decrease) in Cash Held

(144,396)

(175,341)

Cash at the Beginning of the Year

2,028,270

2,203,611

1,883,874

2,028,270

Cash Flow from Operating Activities Sales Revenue Other Revenue Interest Subscriptions Lease Income Other Outflow of Funds from Operations NET CASH PROVIDED BY OPERATING ACTIVITIES

7(b)

Cash Flow from Investing Activities

Cash Flow from Financing Activities

CASH AT THE END OF THE YEAR

20 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

18

7(a)

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008 NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES A summary of the significant accounting policies adopted by Sydney University Sport is set out in this note. The policies adopted are in accordance with accounting principles generally accepted in Australia and the financial requirements of Sydney University Sport’s Constitution. Unless stated otherwise, the policies adopted are consistent with those applied in previous years. (a)

Basis of Accounting (i)

Sydney University Sport is not a reporting entity because in the Management Committees’ opinion, there is unlikely to exist users who are unable to command the preparations of reports tailored so as to satisfy specifically all of their information needs. The financial statements have therefore been prepared as a special purpose finance report, and there is no requirement to apply the Corporations Law, Australian Account Standards, Australian equivalent to International Reporting Standards and Urgent Issues Group Consensus Views.

The financial statements have been prepared in accordance with all applicable Australian Accounting Standards and Urgent Issues Group Consensus except for the following: AASB 101 AASB 1017 AASB 1028 AASB 1033 AASB 1036 UIG 14

(ii) (b)

- First-time Adoption of IFRS - Related Party Disclosures - Accounting for Employee Entitlements - Presentation and Disclosure of Financial Instruments - Borrowing Costs - Director’s Remuneration

The financial statements have also been prepared in accordance with the historical cost convention.

Property, Plant & Equipment Sydney University Sport’s policy regarding depreciation is as follows: (i) (ii)

Capital expenses of a minor nature, less than $2,000, or at the committee’s discretion, are written off against operations in the year in which the expenditure is incurred.

Property, plant and equipment are depreciated over their useful economic lives using the straight line depreciation method.

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 21

19

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008 NOTE 1 – STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (iii)

(c)

The University of Sydney, under the provisions of the Service Level Agreement have guaranteed to fund all future major capital and building projects whether new buildings or renovations and improvements to existing buildings. Therefore under advice from the Office of the Chief Operating Officer, University of Sydney, Sydney University Sport has not depreciated the building asset in 2008 and the written down value of these assets is unchanged.

Inventories Inventories are valued at the lower of cost and net realizable value. Cost is assigned on a first-in first-out basis.

(d)

Provision for Employee Entitlements Provision has been made in the financial statements for benefits accruing to employees in relation to annual leave and long service leave. All provisions are measured at their nominal amounts. No provision has been made for on-costs in these provisions for employee entitlements.

(e)

Leased Assets Sydney University Sport held an operating lease on land at Linley Point, Sydney, where the University boatshed is located. This property was destroyed by fire in March 2006. The entire value of the property was written off in the operating year.

The Treasurer has seen fit to make a reserve in the Financial Accounts for future liability to rebuild the boatshed.

(f)

Prior Year Comparatives Where necessary the figures for the previous year have been reclassified to facilitate comparison.

(g)

Capital Commitments As at 31st December 2007 there were no contracts entered into that have not been disclosed in these Financial Statements.

22 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

20

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008 NOTE 2 – AFTER BALANCE DATE EVENT (a)

The Federal Government’s voluntary student unionism legislation passed on December 8 2005 came into effect on July 1 2006, no compulsory student fees were received in 2008. The University of Sydney has agreed with the management of Sydney University Sport to replace the compulsory fees previously received in the form of recurrent funding from the University Deputy Vice Chancellor’s Community portfolio to the value of $2.8M in direct funding indexed for the years 2007, 2008 and 2009.

CONTROLLED ENTITIES The consolidated financial report comprises the accounts of Sydney University Sport, its affiliated constituent clubs and the following entities; (a)

NMRC (Building) Pty Ltd

The Company NMRC (Building) Pty Ltd was incorporated in 1998 and is limited by shares.

Its main activity it to undertake the administration of building projects associated with the Sydney University Sport All costs of the company are reimbursed by Sydney University Sport.

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 23

21

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008

2008 $

2007 $

NOTE 3 - REVENUE & EXPENSES Profit for the year has been arrived at after including

Operating Revenue 1 Sales 2 Other Operating Revenue - Interest - Subscription - University Recurrent Funding - Lease income - Other Total Operating Revenue Less: Expenses - Depreciation on Fixed Assets - Interest Expenses - Provision for Long Service Leave - Rental Expense on Operating Leases - Expense on Finance Leases - Provision for Bad Debts

24 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

22

3,028,486

2,386,289

123,089 710,872 3,543,094 993,036 1,564,703

141,131 738,778 1,859,765 894,594 2,746,401

9,963,280

8,766,959

133,510 37,788 (35,364) 63,830 170,784 14,188

475,859 36,982 10,583 120,534 131,026 37,799

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008 2008 $

2007 $

NOTE 4 - PROPERTY, PLANT & EQUIPMENT Leased Property Less: Accumulated Depreciation

(0) (0) (0)

(0) (0) (0)

13,430,733 5,735,232 7,695,501

13,405,726 5,649,778 7,755,948

Motor Vehicles & Rolling Plant Less: Accumulated Depreciation

169,601 122,703 46,898

210,536 128,945 81,591

Plant & Equipment Less: Accumulated Depreciation

1,444,486 1,104,541 339,945

1,444,480 1,050,243 394,237

TOTAL PROPERTY, PLANT & EQUIPMENT

8,082,344

8,231,776

6,356,708

3,805,855

Property & Gymnasium Equipment Less: Accumulated Depreciation

NOTE 5 - ACCUMULATED FUNDS Balance at the Beginning of the Year Less: Amounts Transferred to/(from) Reserves Boat Shed Replacement Reserve Building Maintenance Reserve Coaching Reserve

Add: Surplus/(Deficit) for the Year ACCUMULATED FUNDS AT END OF THE YEAR

450,000 0 0

300,000 -

5,906,708

3,505,855

311,621

2,850,853

6,218,329

6,356,708

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 25

23

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008 2008 $

2007 $

Boat Shed Replacement Fund Balance 1 January Add: Contribution for Year Less: Expenditure for Year

300,000 150,000 -

150,000 150,000 -

Less: Transfer to Accumulated Funds Closing Balance 31st December

450,000

300,000

NOTE 6 - MOVEMENTS IN RESERVES (a)

(b)

Š

(d)

Building Maintenance Fund Balance 1 January Add: Contribution for Year Less: Expenditure for Year Less: Transfer to Accumulated Funds Closing Balance 31st December

-

Club Asset Replacement Fund Balance 1 January Add: Contribution for Year Add: Asset sales/prior yr adjustments Less: Expenditure for Year Balance 31 December

87,622 37,430 (3,771) 121,281

73,912 22,429 (8,719) 87,622

-

-

Coaching Grant Fund Balance 1 January Add: Contribution for Year Less: Expenditure for Year Less: Transfer to Accumulated Funds Closing Balance 31st December

26 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

24

NOTES TO FINANCIAL STATEMENTS SYDNEY UNIVERSITY SPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2008 2008 $

2007 $

7,555 1,889,517 (13,198)

7,000 2,366,477 (345,207)

1,883,874

2,028,270

311,621

2,850,853

133,510 (35,364) (8,254) 14,188 37,430

475,859 10,583 10,285 37,799 22,429

(1,047,103) 45,617 (22,536) 261,770 9,342 6,550 144,721

(341,834) 60,752 (15,146) (119,317) (49,907) 33,745 150,000

(148,509)

3,126,100

NOTE 7 - CASH FLOW INFORMATION

(a) Reconciliation of Cash Cash at bank at the end of the financial year as shown in the statements of cash flows is reconciled to the related items in the balance sheet as follows: Cash on Hand Cash at Bank Cash at Bank/(Bank Overdraft) - Current

(b) Reconciliation of cash flow from operations with surplus from ordinary activities and extraordinary items Surplus after extraordinary items Non-cash flows in surplus - Depreciation - Amounts charged to employee entitlements - (Profit)/Loss on sale of property - Provision for doubtful debts - Club Asset Replacement Changes in assets and liabilities - (Increase)/decrease in receivables - (Increase)/decrease in prepayments - (Increase)/decrease in inventory - Increase/(decrease) in payables - Increase/(decrease) in income in advance - Increase/(decrease) in provision for scholarships - Increase/(decrease) in provision for building maintenanc Net cash provided by operating activities

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 27

25

SYDNEY UNIVERSITY SPORT FOUNDATION Annual Report 2008 The Foundation submits the following Annual Report for 2008 The establishment of the Foundation was approved by Senate in June 2005, with its prime responsibility being for fundraising for sports in the University, including for Sydney University Sport and its constituent clubs, and to ensure compliance with relevant tax and fundraising laws.

At the time there was already an established Sydney University Cricket Club Foundation in place, and a Rugby Foundation established outside of the University, and managed by the Australian Sports Foundation. Pressure to fundraise by other clubs within the University, and a desire to raise funds for capital projects and scholarships resulted in applications being prepared to create a number of new foundations, with more in the pipeline.

It was considered more appropriate to establish one Foundation, namely the University of Sydney Sport Foundation, with the capability of creating Divisions within that Foundation.

In August 2006 four Divisions were created, namely;

Rowing Division

Sporting Scholarships Division

Blue and Gold Division (for capital projects)

Women in Sport Division In October 2007, two more Divisions were approved, namely;

Hockey Division

Soccer Division In July 2008 a further two Divisions were approved, namely;

Athletics Division

Aussie Rules Division As can be seen from the Income Statement and Balance Sheet, at the end of 2008, the total of accumulated funds in the Foundation were in excess of $490k, an increase of $165k over 2007.

In a fundraising sense, the most successful Divisions to date would be Rowing, Hockey, and Scholarships.

Since 2006 the University has conducted a review of the operation of its numerous Foundations and Institutes, with a focus on their compliance with its taxation and fundraising obligations. As a result, the University of Sydney Sport Foundation with its intended Divisional Structure is not fully compliant with the newly created Rules for Foundations and definitions as they apply to Divisions.

A staff resource has been dedicated since March 2009 on a part-time basis to the Foundation, and a project is underway to ensure that the Foundation is compliant with the Rules. This involves the re-constitution of the Foundation, establishment of sub-committees (called Divisions), and establishing clear guidelines for clubs, associations and services as to their obligations pertaining to fundraising through the Foundation. This project is expected to be completed in the third quarter of 2009.

David Collins SUSF Foundation Officer March 2009 28 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

26

SYDNEY UNIVERSITY SPORT FOUNDATION

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 29

27

SYDNEY UNIVERSITY SPORT FOUNDATION

30 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

SYDNEY UNIVERSITY SPORT FOUNDATION

SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008 31

NOTES

32 SYDNEY UNI SPORT & FITNESS FINANCIAL REPORT 2008

WWW.SUSF.COM.AU