2021 Wenty Leagues Club Annual Report by Wenty Leagues

ANNUAL REPORT

2021

DIRECTORS

President Ian McCann

Vice President Alan Fowler

Laurie Capovilla

Adam Cromack

Justin Isaacs

Jody Manson

David Mumford

Robert Willis

OFFICE BEARERS HONORARY LIFE MEMBERS

MANAGEMENT

L. L. Rigby

1980

Deceased

Chief Executive Officer

Glenn Kovacs

W. L. Archer

1981

Deceased

Chief Operations Officer

Stuart Jamieson

R. A. McIntosh

1982

Deceased

Chief Financial Officer

Ian Dengate

R. L. Collison

1982

Deceased

R. N. Downing

1984

Deceased

Gaming Manager

Christie Wheeler

J. R. Scott

1986

Deceased

Commercial Manager

Mary McTaggart

R. R. Howard

1987

Facilities Manager

Paul Felice

T. P. Donoghue

1988

Deceased

Human Resources Manager

Rebecca Green

W. F. Webster OAM 1991

Deceased

D. R. Cromack

1992

Deceased

K. F. Darke

1992

Deceased

B. J. Doyle

1993

Deceased

R. L. Mavin

1995

J. Felstead

1999

L. Capovilla

1999

N. Stoddart

1999

T. Simpson OAM

2001

B. Bowman

2002

Deceased

A. Downing

2009

Deceased

A. Branson

2011

Deceased

J. Stephenson

2013

A. Cromack

2019

I. McCann

2021

Deceased Deceased

Auditors

KPMG

Bankers

Australia and New Zealand Banking Group

Solicitors

Thomson Geer Lawyers

64 TH ANNUAL REPORT 2021 WENTWORTHVILLE LEAGUES CLUB LIMITED - ABN 25 000 244 459 50 Smith St, Wentworthville NSW 2145 Phone: 02 8868 9200 Fax: 02 8868 9290 Email: info@wentyleagues.com.au

www.wentyleagues.com.au

Wentworthville Leagues Club Limited Contents

President's report

Chief executive's report

Constitutional reporting

Directors' report

Lead auditor's independence declaration

Independent auditor's report

Directors' declaration

Statement of profit or loss and other comprehensive income

Statement of financial position

Statement of changes in members' funds

Statement of cash flows

Notes to the financial statements

President’s Report Dear Members,

On behalf of the Board, I am pleased to submit to members for your approval the 64th Annual Report for the year ending 31st December 2021 of Wentworthville Leagues Club. 2021 has been another challenging year for us as a club with yet another prolonged government imposed Covid shutdown, this time for over 3 months, really testing our resolve and determination. Despite this longer shutdown and ongoing staff shortages the club still managed to deliver a $6m profit before tax, generate over $14m in cash from operations and reduce debt by $21m which is an overall outstanding result given the situation. Our balance sheet remains strong with members funds continuing to grow, up by another $9m, to $134m, in total placing us in a very enviable position. The 2022 Annual General Meeting will be held on Sunday 22 May in the Blaxland Room, Level 1 Wenty Events at 10.00am and I look forward to seeing as many members as possible at this meeting where the Board and I will report on both our strong financial growth and further updates on the next exciting chapters for Wenty Leagues. 2022 will be a year of great celebration for our club as it is our 60th anniversary. From our humble beginnings of the first licensed club oping in March 1962, to a club now boasting over 70,000 Members and recently completing a $120million Master Plan. Wenty Leagues Club remains at the forefront of innovation, passion, and vision for what our members want to see from their club. We are proud of our long and consistent commitment to our community over the many decades. We look forward to celebrating this achievement, along with many Member Promotions and Events to mark our milestone anniversary. I hope this is the last time that I ever have to mention Covid, but it would be remiss if me to report on 2021 without recapping what we have been through as a club, employer, and a community. The second lock down came out of the blue when it was announced on Saturday 26 June by the then Premier Gladys Berejiklian again within hours we had to clear members from the club, clear the club of perishable stock, clean the premises in preparation for a closure without any idea of a reopening date and contact staff and inform them of the closure with the limited information we had. For 15 weeks we continually updated staff and members with the information received from the New South Wales government via electronic messaging in phone calls to make sure they knew that we were working hard to make sure they were OK, and we would be ready to open once the government lifted restrictions. Once we were allowed to open on Monday 11 October we did so with heavy trade and density restrictions, but our members still returned in large numbers to show their continued support for the club. On behalf of the club, I want to thank the members for the patience and support for our staff thoughout this period. To our staff members that have returned, we cannot thank you enough for all your hard work since the reopening as it is your hard work and dedication that makes Wenty Leagues the club we are. To conclude, I would like to thank my fellow Board Members for the highly professional manner they conduct themselves as directors and their continued support and dedication to Wenty Leagues, throughout yet another incredibly challenging and demanding year. I also thank the management team, led by CEO Glenn Kovacs for their hard work throughout another Covid interrupted year and extend my thanks to the support of the families of the Board and Management Team for their understanding and patience in what has not been an easy time for all. Finally, to you the members, a huge thank you for your support of our club. Your patience, understanding and above all your loyalty to our club has been unwavering. Without our members, there is no Wenty Leagues, so again our greatest appreciation.

Ian McCann President

Chief Executive Officer’s Report Dear Members,

We thought 2020 was a challenging year for our Industry and our club, unfortunately 2021 doubled down on us with the continuance of the worldwide Covid pandemic, which proved to be equally as challenging for our business and our operations. We had to again deal with the stop/start of business operations via further forced Lockdowns, QR Codes for entry, Vaccination policies, Facemasks, Virtual (Zoom) meetings, Density Limits, and everything else Covid decided to throw at us. I am pleased to report throughout all of this, your club, through Members support and patronage, Wenty again managed our finances and resources well, to ensure we could remain agile as we navigated and delivered upon the restrictions and government enforced rules that were put in place or taken away constantly at a moment’s notice. Which is certainly not an easy feat in a business our size. I need to again pass on a heartfelt and sincere THANK YOU! Firstly, to our agile and resilient Wenty Staff (we refer to as Family), who have continued to deliver a high standard of customer service excellence to our many loyal members and guests. It has not been easy going, in fact often quite challenging to find fresh staff after the stop/start years of plagued Covid, but our core group of our staff have remained, and they are unwavering in their commitment to their roles and to our club, particularly during those uncertain times. To our Membership, without your continued support and patronage none of this would be possible. Thank you for your ongoing patience and understanding whilst we essentially rebuilt, continually turned on and off all our club operations, favourite activities, entertainment, and promotions. Your support is evident in the pleasing results Wenty Leagues achieved throughout the fiscal year. I want to thank the Board of Directors for their ongoing support and guidance throughout what has been a challenging year for all. I appreciate all your efforts in ensuring we continued to support our staff, members & community needs during these difficult times. A special thank you also to the Executive Management Team, your assistance, professionalism, and commitment to your roles assisted me greatly to navigate our club through challenging times. The team was always willing and able to simply “get the job done” in the aim to meet our goal to provide exceptional hospitality, regardless of the circumstances. I am extremely proud that even through tough times, we cannot forget and nor did we forget, our community outside of the club. Our staff of volunteer’s setup a Community Care Call Team, who made over 4,000 phone calls during the 2021 15 week lockdown, calling our members, starting with those living alone, aging or more vulnerable than others, to spend time checking in, to make sure that they were doing ok or helping put them in touch with others if they needed assistance whilst isolated from their family and friends. Our Team, also continued to provide meals or donations of goods that were close to expiry, to those in need at Parramatta Mission, along with donating supplies to help and assist at Christmas. We continued to sponsor a room at Ronald McDonald House and help with donations to “Meals from the Heart” for families who are doing it tough while their young ones are in hospital. In closing, I do hope that this is the last time I need to refer to Covid and the impacts of the past two years it has placed on our community and our business. I am confident and look forward to a sense of normality in 2022 and welcome the opportunity to see our many members back through the doors of their favourite club, celebrating and enjoying great times with family and friends, as well as participating in all your favourite activities, promotions, and entertainment we have on offer. Looking forward to a successful year, I would like to thank all our members and guests for their patience and understanding. I also wish to thank the Board of Directors for their ongoing support and the Management Team and staff who continue to strive to provide exceptional hospitality.

Glenn Kovacs Chief Executive Officer

Constitutional Reporting 2021 $ Member statement of benefit (Rule 70) The apportionment of the annual profit has been appropriated for improvements to the benefit for the members. Donation - Sporting bodies

576,895

Donation - Accredited incorporated sport and recreational clubs

242,460

Donations - Clubgrants and other

422,730

Ringrose Park & bowling greens

683,964

Subsidised entertainment (non-gaming and net of revenue)

334,988

Members expenses

357,638 2,618,675

Directors Honorariums (Rule 86: Allowance $57,000 + CPI) Position

Name

President

I McCann

13,984

Vice President

A Fowler

7,904

Director

L Capovilla

7,904

Director

A Cromack

7,904

Director

J Isaacs

7,904

Director

J Manson

7,904

Director

D Mumford

7,904

Director

R Willis

7,904 69,312

Directors expenses In accordance with the Constitution the total value of directors expenses under Rule 87 to Rule 93 (excluding Rule 92) for the year 2021 (indexed for CPI) is $163,145 (2020: $158,316). The actual expenditure for the year of $50,063 (2020: $51,827) is $113,082 or 69% below the amount allocated for the year and a decrease of $4,829 or 3% (decrease in 2020: $33,436 or 39%) below the costs of the prior year. In accordance with the Constitution the Rule 92 Special functions and Rule 94 Club attire do not have approved amounts of expenditure but rather apply a "reasonable expenditure" test. The base year for the CPI annual increases is a combination of the adoption of the original Constitution in the year 2000 and subsequent amendments in the year 2005.

CPI Base Period

Constitution

Approved

Actual

Allowance

Amount

Expenditure

Rule

Clubs NSW, Leagues Club Association and trade shows

Jan-05

36,000

53,464

Board meetings Club, charity and community attendance Jan-00

18,000

31,577

19,509

Partner club, charity or community attendance

Jan-05

9,500

14,109

Director & guest - In house dinning

Jan-00

6,400

11,227

5,496

Annual sports, Board & AGM functions

Jan-00

25,000

43,857

15,873

Special function - service & achievement

N/A

782

Other expenses not specified in other rules

Jan-05

6,000

8,911

2,188

Uniform attire

N/A

100,900

163,145

6,208 50,062

Constitutional Reporting Directors expenses (continued)

2021 $

Professional development and education (Rule 87) Clubs NSW regional meetings, Gaming Expo conference and trade show and attendance other clubs.

Board meetings and community & charity attendance (Rule 88) Board meals & beverage

13,327

Cab charge

6,182

Club community & charity event

19,509 6

Partner attendance at community & charity events (Rule 89)

5,496

Directors entertainment in house dining facilities (Rule 90) Special functions (Rule 91) AGM

3,914

Board Election

9,900

Annual Board dinner

2,060 15,874 782

Special functions (Rule 92) Other expenditure (Rule 93)

2,188

Club attire (Rule 94)

6,208

Aggregate sum of the 6 highest paid officers of the club (Rule 156 (b)(i)) The aggregate sum representing the annual salaries, bonuses and emoluments paid (when taken together) to the 6 highest paid Officers of the club including the CEO without reference to name or title (2020: $1,322,957) Registered members (Rule 156 (b)(ii)) The number of members registered at the end of the club's financial year (2020 65,651)

1,288,904

74,169

Wentworthville Leagues Club Limited Directors' report For the year ended 31 December 2021 The directors present their report together with the financial report of Wentworthville Leagues Club Limited (the Company or the Club) for the financial year ended 31 December 2021 and the auditor’s report thereon. Directors The Directors of the Company at any time during or since the end of the financial year are: Name

Experience, qualifications, special responsibilities and interest in contracts

I McCANN President

Director 15 years including President 13 years. Honorary Life Member, Chairman of Board’s Remuneration Committee and Property Corporate and Investment Committee, Sponsorship Committee and Disciplinary Committee. Vice President of Leagues Club Association. Delegate of member bodies of Clubs NSW and member of Club Directors Institute. Member of Clubs Corporate Governance Working Group, Boards Representative at Sports Council. Member of all Sporting Associations and patron of Darts Club and Cricket Club. Life member of WDRLFC. Interest in contracts - Nil

A FOWLER Vice President

Director 11 years, Vice President 1 year , Previous Vice President for 2 years (20112013). Member of Board’s Audit Risk and Compliance Committee, Remuneration Committee and Sponsorship Committee. Member of Member Bodies of Leagues Club Association and Club Directors Institute. Member of all Sporting Associations. Interest in contracts - Laing + Simmons

L CAPOVILLA Director

Director 33 years. Honorary Life Member, Member of the Board’s Property Corporate and Investment Committee, Sponsorship Committee and Disciplinary Committee, Delegate of WLC 60years Anniversary Committee, Delegate to Leagues Clubs Association and Member of ClubsNSW and Clubs Directors Institute. 33 years’ service Leagues Club Australia. Member of all Sporting Associations and Patron of Wenty Leagues Golf Club and Life Member of WDRLFC and WUJRLFC. Interest in contracts - Nil

A CROMACK Director

Director 19 years including past Vice President for 6 years (2013 - 2019). Member of Boards Remuneration Committee, Sponsorship Committee and Disciplinary Committee. and Chairman of Audit Risk and Compliance Committee. Member of member bodies of ClubsNSW and Club Directors Institute. Delegate of Leagues Club Association. Alternate at Sports Council. Member of all Sporting Associations, including Life Member of WDRLFC. Interest in Contract: Platinum Electricians

J ISAACS Director

Director 13 years. Member of Board's Remuneration Committee and Audit, Risk and Compliance Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Member of all Sporting Associations including patron of Darts Club and Life member and President of Cricket Club. Interest in contracts - Wentworthville Leagues Cricket Club.

Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2021 Name

Experience, qualifications, special responsibilities and interest in contracts

J MANSON Director

Director 1 year. Member of Board's Audit, Risk and Compliance Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Member of all Sporting Associations including Life Member and President of Netball Club Interest in contracts - Wentworthville Leagues Netball Club.

D MUMFORD Director

Director 2 years. Member of Board's Audit Risk and Compliance Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Member of all Sporting Associations. Interest in contracts - Nil

R WILLIS Director

Director 7 years. Vice President of Cricket Club. Member of the Board's Property Corporate and Investment Committee, Sponsorship Committee and Disciplinary Committee. Member of member bodies of Leagues Club Association, ClubsNSW and Club Directors Institute. Sports Council Chairman, Life Member of the Cricket Club and Member of all Sporting Associations. Interest in contracts - Wentworthville Leagues Cricket Club

Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2021 SHORT AND LONG TERM OBJECTIVES To promote and encourage the sport of Rugby League in the Wentworthville district. To be the community's venue of choice, that special destination every day of the week for that memorable experience. STRATEGY FOR ACHIEVING OBJECTIVES The objectives will be achieved through providing a value offering in product and service while increasing profitability in a quality hospitality and entertainment venue. PRINCIPAL ACTIVITIES The principal activities of the Company during the course of the financial year were that of a licensed club. The purpose of the club is to promote and encourage the sport of Rugby League and to provide facilities and services to its members. ACTIVITIES IN ACHIEVING THE OBJECTIVES The principal activities provided a financial return sufficient to maintain the assets of the club, promote and encourage the sport of Rugby League in the Wentworthville district and provide, promote and develop an environment within the club directed towards good fellowship and social harmony amongst its members. MEASUREMENT OF PERFORMANCE The entity is measured against a financial budget, a strategic plan and a set of key performance indicators that are assigned to its senior management team. In addition, research is carried out to assess the team's performance with regard to the demographic of the area and our competition. MEMBERSHIP The company is limited by guarantee and without share capital. If the company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. As at 31 December 2021 there are 74,169 (2020: 65,651) current members across the following membership classes:-

Type Foundation life Honorary life Companion Life Twenty five year Fifty year Standard Concessional Staff

Number 29 8 4 2,314 597 56,706 14,460 51 74,169

RESULTS OF OPERATIONS The profit after tax for the financial year is $5,865,972 (2020: $5,772,262).

Wentworthville Leagues Club Limited Directors' report (continued) For the year ended 31 December 2021 RESULTS OF OPERATIONS (continued) 2021 Comparative earning position 5,865,972 Profit / (Loss) after tax Add: 3,281,643 Interest expense (2,433,690) Derivative revaluation 10,060,037 Depreciation 120,280 Tax expense 10,360 Loss from disposal of plant, property and equipment (Reversal)/Impairment of property, plant and equipment Adjusted earnings

2020 5,772,262 3,313,606 291,645 9,626,420 259,947 796 (546,304) 18,718,372

16,904,602

DIRECTORS' MEETINGS The following table sets out the number of Director's meetings held and attended during the year. During the year, 15 board meetings were held. Under the Board's Charter for its Committee the Directors along with management combine to undertake the responsibilities of the Property Corporate and Investment Committee, Audit Risk and Compliance Committee, Sponsorship Committee, Disciplinary Committee and Remuneration Committee meetings. The directors have also attended other meetings and functions in fulfilling their duties, inclusive but not limited to industry professional bodies, sporting associations, councils and political representatives functions and sporting club committees throughout the year.

Director Ian McCann Alan Fowler Laurie Capovilla Adam Cromack Justin Isaacs Jody Manson David Mumford Trevor Simpson OAM Robert Willis

Board meetings and Charter Committees Available Attendance 38 37 35 30 38 36 35 31 35 30 17 16 35 34 15 15 38 35 286 264

Other meetings 14 2 6 6 6 4 9 2 6 55

DIRECTORS' AND EXECUTIVES' REMUNERATION Remuneration of directors is in accordance with Rule 86 of the Constitution. Details of remuneration provided to directors is as follows:Directors I McCann (President) A Fowler (Vice President) L Capovilla A Cromack J Isaacs J Mason D Mumford R Willis

Honorarium 13,984 7,904 7,904 7,904 7,904 7,904 7,904 7,904

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Wentworthville Leagues Club Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Wentworthville Leagues Club Limited for the financial year ended 31 December 2021 there have been: i.

no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii.

no contraventions of any applicable code of professional conduct in relation to the audit.

KPM_INI_01 PAR_SIG_01

KPMG

PAR_NAM_01

PAR_POS_01

PAR_DAT_01

PAR_CIT_01

Richard Drinnan Partner Sydney 13 April 2022

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

Independent Auditor’s Report To the members of Wentworthville Leagues Club Limited Opinion We have audited the Financial Report of Wentworthville Leagues Club Limited (the Company).

The Financial Report comprises:

In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including:

•

Statement of financial position as at 31 December 2021

•

Statement of profit or loss and other comprehensive income, Statement of changes in members’ funds, and Statement of cash flows for the year then ended;

•

Notes including a summary of significant accounting policies;

•

Directors’ Declaration.

•

giving a true and fair view of the Company’s financial position as at 31 December 2021 and of its financial performance for the year ended on that date; and

•

complying with Australian Accounting StandardsReduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Company in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with these requirements. Other Information Other Information is financial and non-financial information in Wentworthville League Club Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. The Other Information we obtained prior to the date of this Auditor’s Report was the Constitutional Reporting, Director’s Report, President’s Report and Chief Executive Officer’s Report. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. We are required to report if we conclude that there is a material misstatement of this Other Information and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: •

preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001

•

implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error

•

assessing the Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report Our objective is: •

to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error; and

•

to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. This description forms part of our Auditor’s Report.

KPMG

Richard Drinnan Partner Sydney 13 April 2022 12

Wentworthville Leagues Club Limited Directors· declaration In the opinion of the directors of Wentworthville Leagues Club Limited (the Company): (a) the Company is not publicly accountable; (b) the financial statements and notes, set out on pages 14 to 37, are in accordance with the Corporations Act 2001, including: (i)

giving a true and fair view of the Company's financial position as at 31 December 2021 and of its performance for the financial year ended on that date; and

(ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001; and (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of directors.

Ian McCann Director Dated at Wentworthville this 13th day of April 2022

Wentworthville Leagues Club Limited Statement of profit or loss and other comprehensive income For the year ended 31 December 2021 Note

In AUD

Revenue Other income Raw materials and consumables used Poker machine compliance costs Personnel expenses Loss from disposal and write-off of non current assets Change of inventories of finished goods Donations Entertainment, advertising and promotions Repairs, consumables and maintenance Legal, consulting and auditor fees Utilities and government charges Reversal of prior year impairment loss recognised Other expenses Profit before depreciation, income tax and finance costs

4 4

5 4

Depreciation and amortisation Results from operating activities

6 6

Finance income Finance expenses Net finance costs Profit before income tax

Income tax expense Profit for the year Other comprehensive income Gain on asset revaluation Total comprehensive income for the year

The notes on pages 18 to 36 are an integral part of these financial statements.

2021

2020

55,286,210 1,159,692 (3,218,564) (12,215,321) (12,856,751) (10,360) (53,488) (1,242,084) (2,520,255) (1,945,856) (250,355) (2,357,003) (2,893,035) 16,882,830

56,513,116 3,924,000 (3,189,223) (12,568,772) (15,356,932) (796) 106,750 (958,841) (2,598,253) (2,070,163) (188,854) (2,470,621) 546,304 (2,442,953) 19,244,762

(10,060,037) 6,822,793

(9,626,420) 9,618,342

2,445,102 (3,281,643) (836,541)

19,118 (3,605,251) (3,586,133)

5,986,252

6,032,209

(120,280) 5,865,972

(259,947) 5,772,262

3,566,500 9,432,472

11,118,281 16,890,543

Wentworthville Leagues Club Limited Statement of financial position As at 31 December 2021 Note

In AUD

Assets Cash and cash equivalents Trade and other receivables Inventories Other assets Total current assets Property, plant and equipment Intangibles Investments Total non-current assets Total assets Liabilities Trade and other payables Borrowings Derivatives Lease liability Employee benefits Provisions Total current liabilities Borrowings Derivatives Lease liability Employee benefits Deferred tax liabilities Trade and other payables Provisions Total non-current liabilities Total liabilities Net assets

The notes on pages 18 to 36 are an integral part of these financial statements.

2020

8 9 10 12

8,840,906 215,614 251,554 511,000 9,819,074

17,491,360 85,467 198,066 572,718 18,347,611

19 13 11

212,041,061 1,790,717 213,831,778 223,650,852

214,626,644 1,790,717 14,822 216,432,183 234,779,794

14 16 17 20 15 18

10,034,110 6,213,671 651,176 55,843 1,990,503 535,526 19,480,829

8,816,073 6,243,740 1,041,612 53,328 1,747,861 574,611 18,477,225

16 17 20 15

62,519,907 6,461 1,081,640 195,975 6,126,333 147,792 181,199 70,259,307 89,740,136 133,910,716

83,522,313 1,908,904 1,137,483 164,163 4,740,116 143,826 207,520 91,824,325 110,301,550 124,478,244

14,684,781 119,225,935 133,910,716

11,118,281 113,359,963 124,478,244

14 18

Members' funds Revaluation surplus Retained profits Total members' funds

2021

Wentworthville Leagues Club Limited Statement of changes in members' funds As at 31 December 2021

In AUD

Retained profits

Revaluation surplus

Total equity

Balance at 1 January 2020

107,587,701

5,772,262

11,118,281

5,772,262

11,118,281

16,890,543

Balance at 31 December 2020

113,359,963

11,118,281

124,478,244

Balance at 1 January 2021

113,359,963

11,118,281

124,478,244

5,865,972

3,566,500

5,865,972

3,566,500

9,432,472

119,225,935

14,684,781

133,910,716

Total comprehensive income for the period Profit for the year Other comprehensive income Total comprehensive loss for the period

Total comprehensive income for the period Profit for the year Other comprehensive income Total comprehensive income for the period Balance at 31 December 2021

The notes on pages 18 to 36 are an integral part of these financial statements. 16

Wentworthville Leagues Club Limited Statement of cash flows For the year ended 31 December 2021 Note

In AUD

Cash flows from operating activities Cash receipts from customers Cash paid to suppliers and employees Cash generated from operations Dividends received Interest paid and other finance costs paid Income tax (paid)/refund Net cash from operating activities

2021

2020

60,645,285 (43,146,400) 17,498,885 252 (2,997,814) (43,438) 14,457,885

62,194,436 (41,750,079) 20,444,357 504 (3,634,901) 420,430 17,230,390

Cash flows from investing activities Proceeds from sale of property, plant and equipment Proceeds from sale of investments Acquisition of property, plant and equipment Interest received Net cash flows used in investing activities

17,955 16,175 (2,397,407) 11,159 (2,352,118)

77,437 (12,972,253) 19,118 (12,875,698)

Cash flows from financing activities Proceeds from borrowings Repayment of borrowings Net cash flows (used in)/from financing activities

771,630 (21,527,851) (20,756,221)

8,099,490 (1,281,953) 6,817,537

Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

(8,650,454) 17,491,360 8,840,906

11,172,229 6,319,131 17,491,360

The notes on pages 18 to 36 are an integral part of these financial statements.

Wentworthville Leagues Club Limited Notes to the financial statements For the year ended 31 December 2021 1

Reporting entity Wentworthville Leagues Club Limited (the Company) is a company limited by guarantee incorporated and domiciled in Australia. The address of the Company's registered office is 50 Smith Street, Wentworthville, NSW, 2145. The financial statements of the Company are as at and for the year ended 31 December 2021.

2 (a)

Basis of preparation Statement of compliance In the opinion of the directors, the Company is not publicly accountable. The financial statements are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements adopted by the Australian Accounting Standards Board and the Corporations Act 2001. These financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements. The financial statements were approved by the Board of Directors on 13th of April 2022.

(b) Basis of measurement The financial statements have been prepared on the historical cost basis, with the exception of some financial instruments which are measured on fair value basis, and component of property, plant and equipment which is measured on revaluation model basis. (c)

Going concern The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business operations and realisation of assets and settlement of liabilities in the ordinary course of business. The Company has generated a net profit after tax of $5,865,972 for the year ended 31 December 2021 (2020: $5,772,262) and, as at that date, is in a net current liability position of $9,661,755 (2020: $129,614) and in a net asset position of $133,910,716 (2020: $124,478,244). During the year the Company generated cash inflows of $14,457,885 (2020: $17,230,390) from operating activites. The Company also has access to a financing facility with its bank and, as at balance date $13,000,720 of this is yet to be drawn. Based on the above, the Directors consider that the Company will be able to continue to fulfil all obligations as and when they fall due for the foreseeable future, being at least twelve months from the date of approval of these financial statements, and that the Company's financial statements should be prepared on a going concern basis.

(d) Functional and presentation currency These financial statements are presented in Australian dollars, which is the Company's functional currency. (e)

Use of estimates and judgements The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes: • Note 13 Intangible assets • Note 19 Property, plant and equipment - residential property land • Note 24 Contingencies 18

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 3

Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

(a) (i)

Financial instruments Recognition and initial measurement Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit and loss transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(ii)

Classification and subsequent measurement On initial recognition, a financial asset is classified as measured at: amortised cost; fair value through other comprehensive income - debt investment: fair value through other comprehensive income - equity investment: or fair value through profit and loss. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model. A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at fair value through profit or loss: • it is held within a business model whose objective is to hold assets to collect contractual cash flows: and • its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. All financial assets not classified at amortised cost or fair value through other comprehensive income (FVOCI) as described above are measured at fair value through profit and loss (FVTPL). This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets at fair value through profit and loss These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by any impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 3 (a) (iii)

Significant accounting policies Financial instruments (continued) Derecognition Financial assets The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial liabilities The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. (b) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, except residential property - land which is measured at fair value under the revaluation model. The increase in an asset class' carrying amount as a result of a revaluation is recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the asset class previously recognised in profit and loss. Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment and is recognised net in profit or loss. A gain arising from revaluation is recognised within other comprehensive income. A loss arising from revaluation is recognised within profit or loss to the extent that it exceeds any existing revaluation surplus for the asset.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 Significant accounting policies 3 (b) Property, plant and equipment (continued) (ii) Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred. (iii)

Depreciation Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use. Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Depreciation is generally recognised in profit or loss, unless the amount is included in the carrying amount of another asset. Land is not depreciated. The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows: • • • • • • •

Buildings including residential property buildings Leasehold improvements Plant and equipment Equipment under finance lease Furniture, fixtures and fittings Office machines Motor vehicles

40 years 11 years 5 - 10 years 3 years 5 - 10 years 3 - 5 years 8 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (c)

Intangible assets Poker machine entitlements Poker machine entitlements that are acquired by the Club, which have infinite useful lives, are measured at cost less accumulated impairment losses. Subsequent expenditure Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred. Impairment Poker machine entitlements have indefinite useful lives as they have no expiry date. Accordingly, such intangible assets are not amortised but are systematically tested for impairment at each reporting date (see note 3(f)).

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 Significant accounting policies 3 (d) Non-current assets held for sale Non-current assets, that are expected to be recovered primarily through sale rather than through continuing use, are classified as held for sale. Immediately before classification as held for sale, the assets are remeasured in accordance with the Club's accounting policies. Thereafter generally the assets are measured at the lower of their carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss. Property, plant and equipment once classified as held for sale is not depreciated. (e)

Inventories Inventories are measured at the lower of cost and net realisable value. The cost of inventories is calculated on a weighted-average cost basis, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and estimated costs necessary to make the sale.

(f)

Impairment Non-derivative financial assets Financial instruments and contract assets The Company recognises loss allowances for expected losses on: • financial assets measured at amortised cost; • debt investments measured at fair value through other comprehensive income; and • contract assets. The Company measures loss allowances at an amount equal to lifetime expected credit losses. Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime expected credit losses. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company's historical experience and informed credit assessment and including forwardlooking information. The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due. The Company considers a financial asset to be in default when: • the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held): • or the financial asset is more than 90 days past due.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 3 (f)

Significant accounting policies (continued) Impairment (continued) Non-derivative financial assets (continued) 12-month expected credit losses are the portion of credit losses that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months). The maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is exposed to credit risk. Measurement of expected credit losses Credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Company expects to receive). Credit losses are discounted at the effective interest rate of the financial asset. Presentation of allowance for expected credit losses in the statement of financial position Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. For debt securities at fair value through other comprehensive income, the loss allowance is charged to profit or loss and is recognised in other comprehensive income. Write-off The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company expects no significant recovery from the amount written off.

(g) Employee benefits (i) Defined contribution plans A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognised as an employee benefit expense in profit or loss in the periods during which services are rendered by employees. (ii)

Other long-term employee benefits The Company’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the Company’s obligations.

(iii)

Short-term benefits Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(h) Provisions A provision is recognised if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost. 23

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 3 (i)

Significant accounting policies (continued) Revenue Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company identifies the contract with a customer, identifies the performance obligations in the contract, determines the transaction price which takes into account estimates of variable consideration and the time value of money, allocates the transaction price to the separate performance obligations on the basis of the relative standalone selling price of each distinct good or service to be delivered, and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services

(i)

Goods sold Revenue from the sale of goods is recognised at the point in time the goods are provided and payment is collected.

(ii)

Rendering of services Revenue from gaming services is the net difference between gaming wins and losses, and is recognised upon the outcome of the game at the close of business.

(iii)

Rental income Rental income is recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

(iv) Dividend and interest revenue Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. (j)

Leases At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: • the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; • the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and • the Company has the right to direct the use of the asset. The Company has this right when it has the decisionmaking rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either: • the Company has the right to operate the asset; or • the Company designed the asset in a way that predetermines how and for what purpose it will be used. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 3 (j)

Significant accounting policies (continued) Leases (continued) For contracts entered into before, the Company determined whether the arrangement was or contained a lease based on the assessment of whether: • fulfilment of the arrangement was dependent on the use of a specific asset or assets; and • the arrangement had conveyed a right to use the asset. An arrangement conveyed the right to use the asset if one of the following was met: - the purchaser had the ability or right to operate the asset while obtaining or controlling more than an insignificant amount of the output; - the purchaser had the ability or right to control physical access to the asset while obtaining or controlling more than an insignificant amount of the output; or - facts and circumstances indicated that it was remote that other parties would take more than an insignificant amount of the output, and the price per unit was neither fixed per unit of output nor equal to the current market price per unit of output. As a lessee The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-ofuse asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date and plus any initial direct costs incurred. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, and the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: • fixed payments, including in-substance fixed payments; • variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; and • lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-of-use assets and lease liabilities separately in the statement of financial position.

(k)

Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance cost on loans and borrowings is recognised in profit or loss using the effective interest method. 25

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 3 (l)

Significant accounting policies (continued) Income tax Tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

(i)

Current tax Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the declaration of dividends.

(ii)

Deferred tax Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction and that affects neither accounting nor taxable profit or loss. The measurement of deferred tax reflects the tax consequences that could follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, clubs are only liable for income tax on income derived from non-members and from outside entities.

(m) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to the Australian Taxation Office (ATO) is included as a current asset or liability in the statement of financial position. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 Significant accounting policies (continued) 3 (n) Fair value measurement When measuring fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs) The fair value assessment of the freehold land and buildings was carried out as at 31 December 2021 by Global Valuations Services Pty Limited (Certified practicing valuer no. 67391). The Company has elected to revalue only the land component associated with the residential properties, and has recognised buildings under residential properties (buildings) category on a cost model, refer to note 2(e) and 3(b). The following table details the assets which are measured and disclosed at fair value categorised under the three level hierarchy.

Assets Residential property - Land Measured at fair value

Level 1

Level 2

Level 3

36,130,000 36,130,000

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 4

Profit from operations 2021

In AUD

Revenue from continuing activities Revenue from rendering services Revenue from catering and beverage outlet sales Membership subscriptions Commissions Entertainment and promotion Property rentals Other revenue Total revenue from operations Loss from disposal and write-off of non current asset Loss from disposal of property, plant and equipment

Other income Government grants

44,642,434 8,449,633 212,158 486,631 476,218 977,797 41,339 55,286,210

46,756,549 7,987,443 221,383 432,312 178,836 902,662 33,931 56,513,116

(10,360) (10,360)

(796) (796)

1,159,692 1,159,692

3,924,000 3,924,000

Personnel expenses 2021

In AUD

Wages and salaries Payroll tax Workers compensation Contributions to defined contribution plans Other associated employee expenses

2020

10,885,793 443,051 244,202 988,770 294,935 12,856,751

2020

13,113,156 587,533 294,464 984,905 376,874 15,356,932

Finance income and finance costs In AUD

2021

Interest income Change in Financial assets at fair value through profit or loss Finance income

11,412 2,433,690 2,445,102

19,118 19,118

Interest expense Change in Financial assets at fair value through profit or loss Finance costs

3,281,643 3,281,643

3,313,606 291,645 3,605,251

2020

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 7

Tax expense 2021

In AUD

Current tax expense Movement in deferred tax asset Current tax liability/(asset) Income tax expense/(benefits)

2020

(126,039) 246,319 120,280

225,547 34,400 259,947

Numerical reconciliation between tax expense and pre-tax accounting profit The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, registered clubs are only liable for income tax on income derived from non-members and from outside entities. The amount set aside for income tax in the statement of profit or loss and other comprehensive income has been calculated as follows: 2021

In AUD

Profit/(Loss) from operations Income tax expense calculated at 30% Effect of revenue that is exempt from taxation Effect of expenses that are not deductible in determining taxable profit Adjustment relating to non-assessable income and non-deductible expenses Utilisation of prior period losses Under/(over) provided in prior years Income tax expense recognised in profit or loss 8

5,986,252

6,032,209

1,795,876 (13,600,965) 11,496,105 624,358 (195,094) 120,280

1,809,663 (14,138,007) 12,184,955 689,710 (150,230) (136,144) 259,947

Cash and cash equivalents 2021

In AUD

Cash at bank Cash at call Cash floats Cash and cash equivalents 9

2020

1,038,190 3,001,518 4,801,198 8,840,906

1,576,567 11,327,477 4,587,316 17,491,360

Trade and other receivables 2021

In AUD

2020

215,614 215,614

Trade receivables

85,467 85,467

10 Inventories 2021

In AUD

2020

251,554 251,554

Finished goods - at cost

198,066 198,066

11 Investments 2021

In AUD

Shares in listed companies

2020

14,822 14,822

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 12 Other assets 2021

In AUD

Current Prepayments

511,000 511,000

2020

572,718 572,718

13 Intangible assets In AUD

2021

2020

Balance at the beginning of the year

1,790,717

Balance at the end of the year

1,790,717

Poker machine entitlements are stated at cost less accumulated impairment losses. Poker machine entitlements have an indefinite useful life given they have no expiry date, and accordingly are not amortised but are to be assessed annually for impairment.

14 Trade and other payables In AUD

2021

2020

Current Trade payables GST payable Other payables Accruals

5,877,528 487,775 677,159 2,603,487

5,144,637 422,497 715,848 2,338,469

Income tax payable

246,319

34,400

Members' subscriptions in advance

141,842

160,222

10,034,110

8,816,073

147,792 147,792

143,826 143,826

Non-Current Members' subscriptions in advance

15 Employee benefits In AUD

Current Liability for annual leave Liability for long service leave Non-current Liability for long service leave

2021

2020

1,311,691 678,812 1,990,503

1,094,968 652,893 1,747,861

195,975 195,975

164,163 164,163

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 16 Borrowings In AUD

2021

2020

Current Bills payable

5,340,000

873,671

903,740

6,213,671

6,243,740

62,192,280 327,627 62,519,907

82,862,280 660,032 83,522,312

80,533,000 50,000 700,000 2,598,000 3,000,000 86,881,000

88,203,000 50,000 700,000 2,598,000 3,000,000 94,551,000

67,532,280 7,063 344,188 1,201,298 69,084,829

88,202,280 6,474 608,938 1,563,773 90,381,465

13,000,720 42,937 355,812 1,396,702 3,000,000 17,796,171

720 43,526 91,062 1,034,227 3,000,000 4,169,535

Equipment loan

Non-Current Bills payable Equipment loan

The club has access to the following lines of credit: Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility Facilities utilised at balance date Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility Facilities not utilised at balance date Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility

Security consists of: Registered first mortgage by Wentworthville Leagues Club Limited over club premises situated at Wentworthville Leagues Club, Smith Street, Wentworthville, NSW, 2145. A first registered equitable mortgage by Wentworthville Leagues Club Limited over the whole of its assets and undertakings including uncalled capital. Registered first mortgage by Wentworthville Leagues Club Limited over 40 properties situated in Wentworthville.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 17 Derivatives 2021

In AUD

Current Derivative liability

2020

(653,485)

(1,041,612)

2,309

(651,176)

(1,041,612)

Derivative liability

(280,442)

(1,908,904)

Derivative asset

273,981

(6,461)

(1,908,904)

Derivative asset

Non-Current

18 Provisions 2021

In AUD

Current Linked poker machine jackpot Provision for mortality commitment Provision for player bonus points Non-Current Provision for mortality commitments

2020

273,978 19,903 241,645 535,526

263,471 18,668 292,472 574,611

181,199 181,199

207,520 207,520

Linked poker machine jackpot Poker machine link jackpots is the current balance of available jackpots that accumulate from turnover play on poker machines. These jackpots are returned to players by achieving the required combination for the link jackpot on the machine being played. Member mortality commitment Members who joined the club between 1970 and 1989 may have been eligible for a mortality payment. No external fund exists and all commitments are met out of current cash flow. The present value of the mortality commitment reflects managements estimates based upon similar lapse rates and discount rates to prior year Actuarial valuations. Rewards bonus points The best estimate of the commitment to members in relation to unredeemed bonus points is $241,645 (2020: $292,472). Earning rates, lapse rates and terms and conditions shall impact on future estimates.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 19 Property, plant and equipment

In AUD

Freehold land & buildings (Club premises and residential buildings)

Residential properties land

Leasehold improvements

Plant and equipment

Furniture, fixtures and fittings

Office machines

Motor vehicles

Right of use asset

Capital work in progress

Cost Balance at 1 January 2021 Additions Disposals Transfers Revaluation Balance at 31 December 2021

167,569,340 6,750 167,576,090

31,035,000 5,095,000 36,130,000

2,572,871 2,572,871

41,847,425 1,334,503 (1,231,805) 728,269 42,678,392

18,205,537 75,854 (5,707) 163,910 18,439,594

2,174,307 124,855 (3,540) 18,465 2,314,087

117,652 117,652

1,253,405

Depreciation Balance at 1 January 2021 Depreciation for the year Disposals Balance at 31 December 2021

18,176,144 3,871,821 22,047,965

976,531 113,306 1,089,837

21,917,946 4,652,174 (1,216,787) 25,353,333

7,525,313 1,047,914 (3,044) 8,570,183

1,590,229 285,641 (3,268) 1,872,602

52,723 14,721 67,444

12,410 74,460 86,870

149,393,196 145,528,125

31,035,000 36,130,000

1,596,340 1,483,034

19,929,479 17,325,059

10,680,224 9,869,411

584,078 441,485

64,929 50,208

1,240,995 1,166,535

102,403 47,204

Carrying amounts At 1 January 2021 At 31 December 2021

1,253,405

102,403 855,445 (910,644) 47,204

Total

264,877,940 2,397,407 (1,241,052) 5,095,000 271,129,295

50,251,296 10,060,037 (1,223,099) 59,088,234

214,626,644 212,041,061

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 20 Leases The Company holds an operating lease with Cumberland Council for the use of the Ringrose Oval adjacent to the property. (i)

Right of use asset Balance as at 1 January 2021

1,240,995

Additions

Depreciation expense

(74,460)

Balance as at 31 December 2021 (ii)

1,166,535

Amounts recognised in profit or loss Depreciation expense

74,460

Interest expense

12,190 86,650

(iii) Amount recognised in statement of cash flows Total cash outflows

65,518

(iv) Lease liability Current lease liability

55,843

Non-current lease liability

1,081,640 1,137,483

21 Related party transactions The directors of the club may from time to time hold a director's role, have membership, life membership or be the patron of the various sport and recreational clubs and football clubs that are governed and controlled by the Leagues Club constitution. A Director of the Company is the principal of a business that has a contract for the provision of rental management of the residential property portfolio. The contract is on commercial terms. The rental management fees paid in the 2021 year were $42,785 (2020: $51,472). A Director of the Company is the principal of a business appointed from time to time to perform contract electrical work. Such appointments are made through a commercial tender process coordinated by Project Management and Building Contractors engaged by the Club. There were nil transactions with this party during the year and no outstanding liability as at balance date. One Director of the Company during the year received honorariums as a Director of the Cricket Club. From time to time, Directors of the Company may purchase goods and engage in services that are provided by the Company and available to all members. These purchases are on the same terms and conditions as those available to all other members and may be in addition to allowances entitled by the Constitution and approved by the members at the AGM. Apart from the details disclosed in this note, no Director has entered into any contract with the Company since the end of the previous financial year and there were no contracts involving Directors interests at year end.

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 21 Related party transactions (continued) Key management personnel compensation The aggregate compensation made to directors and other members of key management personnel of the company is set out below: In AUD

Short term employee benefits Post employment benefits

2021

2020

1,234,405 120,107 1,354,512

1,222,262 100,695 1,322,957

22 Financial reporting period The Company has always used a 52 week cycle for its reporting. The monthly reporting cycle is grouped by weeks and follows a 5, 4, 4 cycle resulting in uniform days in the relative months across consecutive years with the exception of December. Consequently, the close off day for annual reporting purposes changes every year by a day and two days every leap year. The actual month end date for 2021 is 28 December and the actual close for 2020 was 29 December 2020. 23 Core properties Pursuant to Section 41J of the Registered Club Amendments Act 2006, the club categorises property as follows 2021

Core property

188,130,000 188,130,000

Core properties held by the Club are: 50 Smith Street, Wentworthville NSW 2145 2 Dawes Street, Wentworthville NSW 2145 3 Dawes Street, Wentworthville NSW 2145 4 Dawes Street, Wentworthville NSW 2145 5 Dawes Street, Wentworthville NSW 2145 6 Dawes Street, Wentworthville NSW 2145 7 Dawes Street, Wentworthville NSW 2145 8 Dawes Street, Wentworthville NSW 2145 9 Dawes Street, Wentworthville NSW 2145 10 Dawes Street, Wentworthville NSW 2145 11 Dawes Street, Wentworthville NSW 2145 12 Dawes Street, Wentworthville NSW 2145 13 Dawes Street, Wentworthville NSW 2145 14 Dawes Street, Wentworthville NSW 2145 15 Dawes Street, Wentworthville NSW 2145 16 Dawes Street, Wentworthville NSW 2145 17 Dawes Street, Wentworthville NSW 2145 19 Dawes Street, Wentworthville NSW 2145 432 Great Western Hwy, Wentworthville NSW 2145 430b Great Western Hwy, Wentworthville NSW 2145 3 Jewelsford Street, Wentworthville NSW 2145 5 Jewelsford Street, Wentworthville NSW 2145 7 Jewelsford Street, Wentworthville NSW 2145 9 Jewelsford Street, Wentworthville NSW 2145 11 Jewelsford Street, Wentworthville NSW 2145 13 Jewelsford Street, Wentworthville NSW 2145 15 Jewelsford Street, Wentworthville NSW 2145 35

2020

185,180,000 185,180,000

Wentworthville Leagues Club Limited Notes to the financial statements (continued) For the year ended 31 December 2021 23 Core properties (continued) 17 Jewelsford Street, Wentworthville NSW 2145 19 Jewelsford Street, Wentworthville NSW 2145 21 Jewelsford Street, Wentworthville NSW 2145 27 Jewelsford Street, Wentworthville NSW 2145 31 Jewelsford Street, Wentworthville NSW 2145 51 Smith Street, Wentworthville NSW 2145 68 Smith Street, Wentworthville NSW 2145 70 Smith Street, Wentworthville NSW 2145 72 Smith Street, Wentworthville NSW 2145 74 Smith Street, Wentworthville NSW 2145 76 Smith Street, Wentworthville NSW 2145 78 Smith Street, Wentworthville NSW 2145 80 Smith Street, Wentworthville NSW 2145 24 Contingent assets and contingent liabilities The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement. 2021

In AUD

2020

Guarantees 344,188

Bank guarantees

608,938

25 Members guarantee The Company is limited by guarantee. If the Company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. At 31 December 2021 the number of members were 74,169 (2020: 65,651). 26 Coronavirus Covid-19 The coronavirus Covid-19 has had an impact on the Company's operations and activities during the year, however is not expected to materially affect the operations of the Company. On 26 June 2021, the State Government of NSW announced mandatory lockdown orders with all Registered Clubs closing from 6pm Saturday 26 June 2021. The Registered clubs were able to re-open from 11 October 2021. As a result of the closure of the Club, the Company stood down most of its employees. The Company was eligible for and received the JobSaver subsidy during the period of closure. Based on the current available information, the Directors believe that the Company will remain a going concern. 27 Events subsequent to reporting date There have been no other events subsequent to reporting date which would have a material effect on the Company’s financial statements at 31 December 2021.

Wenty Leagues in Partnership with the Community Wenty Leagues has a proud record of supporting welfare, charitable and sporting organisations within our community.

The following were the beneficiaries of financial and in-kind support in 2021: • Adam Gardiner Fund

• Leukaemia Foundation

• Australian Foundation for Disability

• Multicultural Disability Advocacy Association of NSW

• Autism Spectrum Australia (Aspect)

• Odyssey House NSW

• BE UNSTOPPABLE FOUNDATION Ltd

• Parramatta Mission

• Blues Wheelchair Basketball

• Refugee Advice and Casework Service (RACS)

• Camp Quality Ltd.

• Royal Lifesaving Society Australia

• Cultural Diversity Network Incorporated

• Ronald McDonald House Charities,

• Cumberland Council • Dandelion Support Network Inc • Good360 Australia Ltd • Greystanes High School P and C Association • Hilltop Road Public School P and C Association

Greater Western Sydney • Technical Aid to the Disabled • The International Therapy Alliance (TITA) • The Northcott Society • The Salvation Army - The Greater West TSA Auburn CORPS IMPREST

• Holroyd High School

• Toongabbie East Public School

• Koori Kids

• Usman Khawaja Foundation Ltd.

• Learning Links

WENTWORTHVILLE LEAGUES CLUB LIMITED For The Financial Year Ended 31 December 2016

Wentworthville Leagues Club Limited

50 Smith St, Wentworthville NSW 2145

59th Annual Report 2016

Wentworthville Leagues Club Limited

2021 Wenty Leagues Club Annual Report

Articles inside

Directors' report

President's report

Statement of cash flows

Statement of financial position

Independent auditor's report

Directors' declaration

Chief executive's report