2016-2017 ANNUAL REPORT - Maclean Services Club · · 2017-10-134 Maclean Loer Clarence Services...

2016-2017

ANNUAL REPORT

CONTENTS

Notices 3

Secretary Managers’ Report 9

Presidents’ Report 13

Directors’ Report 17

Auditors Annual Report 49

NOTICES

4 Maclean Lower Clarence Services Club Annual Report 2017

MEMBERS WE HAVE SADLY LOST Year ending 30 June 2017

ALCHIN DOROTHY

ASKEW DOUGLAS

BAIN NANCY

BEALE JOHN

BECKMAN BETTY

BROOK ESMAY

CAMPBELL GRAHAM

GREETHEAD RONALD

HILZINGER JEAN

IMRIE DOUG

JOHNS GARY

KAPEEN OWEN

MACAULEY TERRY

MENDES MAXWELL

MONTAGUE VERA

NEW BRIAN

O’REILLY MICHAEL

PRATTEN BARBARA

RHODES ELVERA

SHEEHAN CHARLES

SMITH NOELENE

WALLACE DONALD

YOUNG GARY

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Maclean Lower Clarence Services Club ABN: 89 001 663 494

www.mlcsc.com.au

NOTICE TO ALL MEMBERS

THE ANNUAL GENERAL MEETING

WILL BE HELD ON - SUNDAY 29TH OCTOBER 2017

at 10AM.


LIST OF OFFICE BEARERS

2016 to 2017

President

D. Jones Oct’16 – Mar ‘17 J. De Roos

Vice Presidents

J. De Roos Snr R. Jones

Directors

W. Baker, M. Want, N. Tollis, A. Hilliard, S.Hilliard, D. Noel

Secretary Manager

S. Shankland

Assistant Manager

B. Rediger

Executive Chef

S. Owen

Functions Co-Ordinator

P. Lane

Bar Manager

K. Page

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WE SUPPORTED YOUR COMMUNITY

2016 to 2017

• Clarence Coast Junior Rugby League Club

• Maclean United Cricket Club

• Lower Clarence Darts Association

• Lower Clarence Rowing Club

• Maclean Hospital Auxiliary

• Maclean Show Society

• Lower Clarence Arts and Crafts

• Maclean Golf Club – Veterans Golfers

• Lower Clarence Scottish Association

• Maclean Highland Gathering

• Maclean District Pipe Band

• Mareeba Aged Care

• National Servicemen’s Association

• Grafton Legacy

• Maclean RSL Women’s Auxiliary

• Lower Clarence Music Eisteddfod

• Lawrence Golf Club

• Maclean Probus Club

• Maclean Laurel Club

• Maclean RSL Sub-Branch

• Friends of Mareeba

• Maclean High School

• Genes For Jeans Foundation

• Tartan Brushy Club

• Clarence Coast Theatrical Society

• Maclean Orchid Society

• Westpac Helicopter

• Lower Clarence Netball Association

SECRETARY MANAGERS

REPORT 2017


SECRETARY MANAGERS REPORT

Dear Member

Well, it’s hard to believe it’s that time of year again and it’s also hard to fathom that this is my 5th report to you, the Members and owners, of this fine Club.

The great news is that our trading figures are still increasing from previous years but unfortunately on the back of that, wages and other expenses rise as a result. Despite this, we remain in a better position than last year and even though we’ve still produced a loss, it’s only minimal and shows that we are still receiving wonderful patronage from Members and Visitors alike.

Our investment in the aesthetics of the Club, which has modernised and kept us current, has continued to attract patrons and even though we aren’t all the way there yet, the plans and ideas are at the forefront of myself and the Boards minds. We will keep investing in the Club for our Members and donating and sponsoring the many worthy Clubs, Charities and people in our beautiful Community.

We have continued our legacy to our Ex-Service Members with our service and donations to them increasing dramatically this year. We believe in supporting those organizations that support our diggers, thus, RSL ladies Auxiliary, Legacy, Laurel Club, National Servicemans Association and in particular, the RSL Sub-Branch have received help/donations in some form and to different extents. We always have and always will be here for those whom have dedicated their lives and their time to our country.

As I explained last year, Poker Machines operate on an expected return to player percentage, this unfortunately can have massive fluctuations and run over long periods of time. Unfortunately, due to the volatility of current Poker Machine games, it is often seen that this percentage is hard to obtain. Thus, causing us this year, to experience a drop in our percentage by .73%. This may not seem like much, but it represents about $85,000 in net poker machine revenue. This obviously has a big impact on a small Club like us. What can we do about it, I hear you ask. Well, the short answer is, nothing. This is totally controlled by regulation and is closely monitored to ensure compliance. Unfortunately, it is just something that we just must live with.

I extend a personal thanks to the Dedicated Directors of this Club, some of whom, go far beyond expectation. Their help in this Club is numerous and they deserve a special thanks

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from all the Members. From the likes of, repairs, raffles, purchasing prizes, brain-storming, going to community functions on behalf of the Club, you name it, these people volunteer their time and energy to this Club for FREE. It is a pleasure working with these select few. I have utmost respect for you.

A thank you also must go to all the volunteers of the Club. These people are not on the Board, yet love our Club as much as we do, and out of the goodness of their hearts, dedicate some of their precious time to us. These are the exceptional people we have in our community and appreciate their membership to our Club. So glad we’ve got you.

To the awesome staff of this Club, I once again, am humbled by your dedication and hard work you have produced this year. Technology and changing times force us to sometimes work outside our comfort zones, but you embrace these changes with energy and enthusiasm. The Club sincerely appreciates this. Sometimes it can get quite stressful, but as we are all a team, we can and will overcome all these issues, unfazed. The staffs’ professionalism and dedication is a vital ingredient in the success of any organization and our staff certainly provides this. A Special thanks to my fantastic assistant Manager, Briony and awesome office staff, of whom I rely heavily on. Where would I be without you? To the Executive Chef, Shae and our fabulous function coordinator, Penny, you guys are a privilege to work with.

I’m very happy to conclude that The Club is in good stead. We’ve got some wonderful staff, beautiful food, magnificent views, lovely surroundings and atmosphere and a great Board. The Board and I have accomplished a great many things in the last 5 years, and we will continue to make our little Club even better in the future. This Club is a genuine, friendly, hard- working Club, whom loves the Community and its’ Members.

Thanks again Members for your patronage, we hope to see you with us very soon. It’s been a pleasure serving you.

Thank You

Sharon Shankland

Secretary Manager

PRESIDENTS REPORT

2017


PRESIDENTS REPORT

It is with pleasure that I present to you the President’s Report for the 35th Annual Report of the Maclean Lower Clarence Services Club Ltd.

I embraced the role as President during the year after the resignation of the then President, Denis Jones.

It is an honour and a privilege to lead the Club as the first female President in the history of the Club. As a local person I have watched the Club grow from its inception and I know my father, a WWII veteran, would be delighted that I hold this position. I thank the Board for their confidence in me.

The Club has had a better year than last year, with a difference of $22,681.00, but still producing a small loss of $4,618.00. Our cashflow is still strong though, at $121,537.00 and our trading accounts have all seen a positive improvement.

We are continuing to refurbish areas of the Club as finances allow. There are always issues with an old building but we are managing to overcome most of them and keep the Club looking fresh and inviting. The back deck needs some major work on it to expand it and provide a covering. At the same time we want to expand the area and tie it in with the proposed boardwalk. This will give us an enhanced dining experience with great river views.

A special thank you to Sharon for her leadership and vision for the Club. She leads a dynamic team who are always willing to ensure patrons receive excellent service. Sharon is always looking to upgrade the facilities and to ensure that we stay on top of new developments for our poker machine installation.

The office, bar and kitchen staff have all worked to ensure the quality of the Club is maintained and for this, I thank them.

We are still attracting visitors to the Club, especially those from the RV area at the showground. Many of these are return visitors and some have become Members as they are regular visitors to the area.

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I would like to thank my fellow Board members for their support and commitment to helping in the Club when asked. A special thank you to Mary Want who is always available to help with the clearances and the office on Sunday mornings. Mary has given many years to the Club and for this we are very thankful.

I offer my heartfelt condolences to those who have suffered the loss of a loved one during the past year. And rest in peace those Members we have lost.

Finally I would like to thank all the members who have supported the Club over the last twelve months and I look forward to seeing all of you here over the next twelve months.

Joy de Roos

President

DIRECTORS REPORT

2017


DIRECTORS’ REPORT

The directors present this report on the company for the financial year ended 30 June 2017

DIRECTORS

The following persons held office of director during the year or since the end of the year. D Jones - President [Resigned March 2017] / J De Roos - President [Appointed March 2017], R. Jones - Vice-President, W. Baker - Director, M. Want - Director, N. Tollis - Director, D. Noel - Director, A. Hilliard - Director and S. Hilliard - Director.

The directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

DETAILS OF DIRECTORS ATTENDANCE AT MEETINGS

Since the commencement of the 2016/2017 financial year there have been twelve Directors Meetings. Detail of attendance are as follows:

NameNumber Eligible to

AttendPresent Apologies

J De Roos 12 12 0

W Baker 12 8 4

M Want 12 12 0

N Tollis 12 12 0

A Hillard 11 8 3

S Hillard 12 11 1

D Noel 8 7 1

R Jones 8 8 0

D Jones 11 10 1

K Jones 4 4 0

P Brossman 4 1 3

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DIRECTORS

The qualifications, experience and special responsibilities of the company’s directors are as follows:

Joy De RoosCert III in Admin & Management. 40 Years in Management Positions. Working in aged care. Maclean Services Club Director for 8 years, Vice President for 3.5 years & President for 6 months.

Current President & Representative on all Committees

Roger JonesServed in Royal Australian Navy. Club Management Qualifications. Club Manager for 25 years. Club Directorships – 11 years. Maclean Services Club Vice President, 1 year. Registered Justice of the Peace.

Current Vice President

William BakerRetired. Professional Fisherman. Director, Chairperson & Acting General Manager for Clarence River Fisherman’s Co-op. Director of Sydney Fishmarket. Foundation Director of Maclean Services Club. Director for 9 years, Vice President for 10 years, President for 2 Years.

Current Director

Mary WantRetired. 25 years as a Health Administrator. 28 Years as a Director/Treasurer Maclean Services Club.

Current Director


Neil TollisRetired. 6 Years in Naval Reserve. 2 years in Naval Reserve. 40 years as a Countrywide Autoparts Sales Rep. Director of Maclean Services Club for16 years.

Current Director

Susan HilliardCert III & IV in Business Admin. Worked in numerous admin positions over working life. Past Treasurer for Student ass. for TAFE & for Lower Clarence Rowing Club. Registered Justice of the Peace. Maclean Services Club Director for 3 years.

Current Director

Allan HilliardRetired. Operated own Bricklaying Business. Foreman during construction for Major Building Developments. Maclean Services Club Director for 4 years.

Current Director

Dennis NoelServed in the RNSWL. Previous positions include Company Executive, Retail & Sales Manager & Director positions. Club President of Lower Clarence Computer Club. Sub-Branch Vice President. Maclean Services Club Director for 1 year.

Current Director

MEMBERSHIP

The number and class of members registered in the Register of Members at the date of this report are:

Classification Numbers

Life Members 3

Service Members 93

Associate Members 2056

Total Members 2152

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PRINCIPAL ACTIVITIES

The company operates as a registered club in NSW. The principal activities of the company during the financial year were, the provision of social activities for members and guests.

No significant change in the nature of these activities occurred during the year.

OPERATING RESULTS

The net loss after providing for income tax amounted to $4,618.

REVIEW OF OPERATIONS

A review of the operations of the company during the financial year and the results of those operations are as follows:

2017 2016

Bar Trading Sales 553,352 476,420Gross Profit 310,068 242,668Gross Profit Percentage 56.03% 50.94%

Keno Trading Sales 49,438 42,138

Expenses 1,594 1,557

Keno Trading Profit/(Loss) 47,844 40,581

Kitchen Trading Sales 713,688 705,150Expenses 650,343 595,045Kitchen Trading Profit/(Loss) 63,345 110,105

Poker Machine Trading Revenue 929,985 896,196Expenses 191,607 163,115Poker Machine Trading Profit/(Loss) 738,378 733,081

Other Income 186,576 152,910

Total Operating Income 2,433,039 2,272,814

LESS: Total Expenses 2,437,657 2,300,113

Operating Profit/(Loss) before Income Tax (4,618) (27,299)


The total Operating Loss of $4,618 was a significant improvement on the loss of $27,299 in the previous year. When adding back accounting adjustments for amortisation, depreciation, loss on disposal of assets and profit on disposal of assets the profit for the year was $121,103 compared with $111,881 in the previous year.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the entity, the result of those operations, or the state of affairs of the entity in future financial years.

No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the company.

Auditors’ Independence Declaration

A copy of the auditors’ independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 8.

Signed in accordance with a resolution of the Board of Directors:

Director: J De Roos - President

Director: R Jones - Vice President

(i) Bar Trading Sales increased by $76,932 [16%] Gross profit increased by $67,400 [27.77%]

(i) Poker Machine Revenue The poker machine net surplus increased by $5,297 [0.72%]

(i) Kitchen Trading Sales increased by $8,538 [1.21%] Gross profit was $63,345

(i) Wages Total wages paid to employees (Bar & Kitchen) increased by $81,528 [10.96%]

(i) Electricity and Gas The cost of electricity increased by $7,686 [14.36%] The cost of gas increased by $5,182 [127.10%]

(i) Donations / Sponsorships Sponsorships and donations of $12,684 were made this year. [2016 $6,780]

AUDITORS’ INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF MACLEAN-LOWER CLARENCE SERVICES CLUB LIMITED

We declare that, to the best of our knowledge and belief, during the year ended 30 June 2017 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.

Name of Firm: D W BROWN ACCOUNTANCY SERVICES PTY LTD Chartered Accountants

Name of Partner: DARRELL BROWN

Address: 5 8 River Street, MACLEAN NSW 2463

Dated this 2nd day of October 2017


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

Note 2017 2016

Income

Revenue 2 2,427,053 2,272,814

Other income 2 5,986

2,433,039 2,272,814

Changes in inventories of finished goods and work in progress (567,156) (478,050)

Raw materials and consumables used (490,689) (484,446)

Expenditure

Accountancy expenses (8,196) (7,965)

Advertising expenses (24,491) (21,224)

Auditors' remuneration 3 (8,476) (7,935)

Depreciation and amortisation expenses (131,707) (136,131)

Employee benefits expenses (535,612) (498,587)

Finance costs 4 (499) (499)

Freight and cartage (6,760) (6,622)

Other expenses (664,071) (658,654)

(4,618) (27,299)

Loss for the year 4 (4,618) (27,299)

Total comprehensive income for the year (4,618) (27,299

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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note 2017 2016

ASSETSCURRENT ASSETSCash and cash equivalents 5 343,162 328,195

Trade and other receivables 6 19,037 17,020

Inventories 7 33,617 33,750

Other current assets 8 631 1,130

TOTAL CURRENT ASSETS 396,447 380,095

NON-CURRENT ASSETSFinancial assets 9 200 200

Property, plant and equipment 10 537,804 610,688

Intangible assets 11 610,840 610,840

TOTAL NON-CURRENT ASSETS 1,148,844 1,221,728

TOTAL ASSETS 1,545,291 1,601,823

LIABILITIESCURRENT LIABILITIESTrade and Other Payables 12 152,817 155,011

Borrowings 13 75,587 119,507

Other current liabilities 14 1,394 1,834

TOTAL CURRENT LIABILITIES 229,798 276,352

NON-CURRENT LIABILITIESBorrowings 13 9,191 19,503

Provisions 15 31,829 26,876

TOTAL NON-CURRENT LIABILITIES 41,020 46,379

TOTAL LIABILITIES 270,818 322,731

NET ASSETS 1,274,473 1,279,092

EQUITYReserves 584,238 584,238

Retained earnings 16 690,235 694,854

TOTAL EQUITY 1,274,473 1,279,092


STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

Retainedearnings

$

AssetRevaluation

Reserve $

FamilyAssistance

Fund Reserve

$Total

$

Balance at 1 July 2015 722,153 722,153

Opening balance for the year 575,000 9,238 584,238

Profit attributable to equity shareholders

{27,299) {27,299)

Balance at 1 July 2015 694,854 575,000 9,238 1,279,092

Profit attributable to equity shareholders

{4,618) {4,618)

Balance at 30 June 2017 690,236 575,000 9,238 1,274,474

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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note 2017 2016

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 2,422,175 2,273,094

Payments to suppliers and employees (2,243,794) (2,065,664)

General administration expenses and direct expenses

(47,518) (65,454)

Interest Paid {9,327) (13,835)

Net cash provided by operating activities 18 121,536 128,141

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale of property, plant and equipment

7,320 3,049

Payments for property, plant and equipment

(60,156) (131,398)

Net cash used in investing activities (52,836) (128,349)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 499 499

Repayment of borrowings (54,232) (63,968)

Net cash used in financing activities (53,733) (63,469)

Net increase (decrease) in cash held 14,967 (63,677)

Cash at beginning of financial year 328,195 391,872

Cash at end of financial year 5 343,162 328,195


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements cover Maclean-Lower Clarence Services Club Limited as an individual entity. Maclean-Lower Clarence Services Club Limited is a company limited by guarantee, incorporated and domiciled in Australia.

Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards as issued by the IASB. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated.

The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

The financial statements were authorised for issue on 02 October 2017 by the directors of the company.

Accounting Policies Inventories

Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined using the first-in-first-out basis and is net of any rebates and discounts received.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the costs necessary to make the sale. Net realisable value is estimated using the most reliable evidence available at the reporting date and inventory is written down through an obsolescence provision if necessary.

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Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less. where applicable, any accumulated depreciation and impairment.

Plant and equipment

Plant and equipment are measured using the cost model.

Depreciation

Property, plant and equipment, is depreciated on a straight line basis over the assets useful life to the Company, commencing when the asset is ready for use.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the lease or their estimated useful life.

Financial Instruments

Recognition

Financial instruments are initially recognised at cost on the trade date, which includes transaction costs, when the contractual rights or obligations exist. After initial recognition, financial instruments are measured as set out below:

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Held to maturity investments

Held to maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities. It is the company’s intention to hold these investments to maturity.

Financial liabilities

Non-derivative financial liabilities are brought to account at amortised cost, comprising original debt less principal payments and amortisation.


Impairment

The company assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. Impairment losses are recognised in the income statement.

Impairment of Non-Financial Assets

At the end of each reporting period the company determines whether there is an evidence of an impairment indicator for non-financial assets.

Where this indicator exists the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash-generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss , except for goodwill.

Intangibles

Other Intangible

The preliminary expenses incurred during the set up of the company have been capitalised and are valued in the accounts at cost. No amortisation is applied to these costs.

Poker Machine Licences represent an intangible asset. Upon transition to AIFRS the company recognised the Poker Machine Licences as at 1 July 2004 at their fair value. These intangibles will continue to be valued at deemed cost being the fair value at 1 July 2004. The Directors believe that these licences have an indefinite useful life, therefore, they will not be amortised.


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Employee Benefits

Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability,consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cash flows. Changes in the measurement of the liability are recognised in profit or loss.

Provisions

Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured at the present value of management’s best estimate of the outflow required to settle the obligation at the end of the reporting year. The discount rate used is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the unwinding of the discount is taken to finance costs in the statement of other comprehensive income.

Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

Revenue and Other Income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the company and specific criteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net of returns, discounts and rebates.


Sale of goods

Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time when risks and rewards are transferred and there is no longer any ownership or effective control over the goods.

Dividend revenue

Dividends are recognised when the right to receive payment is established.

Rendering of services

Revenue in relation to rendering of services is recognised depends on whether the outcome of the services can be measured reliably. If this is the case then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be reliably measured then revenue is recognised to the extent of expenses recognised that are recoverable.

Other income

Other income is recognised on an accruals basis when the company is entitled to it.

Borrowing Costs

All borrowing costs are recognised as an expense in the period in which they are incurred.

Comparative Amounts

Comparatives are consistent with prior years, unless otherwise stated.

Where a change in comparatives has also affected the opening retained earnings previously presented in a comparative period, an opening statement of financial position at the earliest date of the comparative period has been presented.

The financial report was authorised for issue on 2 October 2017 by the board of directors.


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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2017 2016

2 REVENUE AND OTHER INCOME

Revenue

Sales revenue:

Sale of goods 2,246,463 2,119,904

Rendering of services 128,471 131,245

2,374,934 2,251,149

Other revenue:

Dividends received 600

Other revenue 51,519 21,665

52,119 21,665

Total revenue 2,427,053 2,272,814

Other income

Profit on sale of property, plant and equipment

5,986

Total other income 5,986

Dividend revenue from:

Dividends Received 600

Total dividend revenue 600

Other revenue from:

Sundry Income 51,519 21, 665

Total other revenue 51,519 21, 665



2017 2016

3 AUDITORS’ REMUNERATION

Auditor’s Remuneration

- Audit of Accounts 8,476 7,935

4 LOSS FOR THE YEAR

Profit before income tax from continuing operations includes the following specific expenses:

Expenses

Cost of sales 1,086,828 993,469

Borrowing Expenses 499 499

Total finance costs 499 499

Depreciation of property, plant and equipment

79,896 84,320

Revenue and Other Income

Profit on sale of property, plant and equipment

5,986

5 CASH AND CASH EQUIVALENTS

Cash on Hand 53,606 55,536

Deposits 5,000 5,000

Petty Cash 300 300

Cash at Bank - Commonwealth Bank (OD Facility)

230,662 207,066

Cash at Bank - Commonwealth Bank 53,594 60,293

343,162 328,195

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2017 2016

Reconciliation of cash

Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in the statement of financial position as follows:

Cash and cash equivalents 343,162 328,195

343,162 328,195

6 TRADE AND OTHER RECEIVABLES

Current

Trade Debtors 6,201 1,763

Prepayments 12,836 15,257

19,037 17,020

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short term nature of the balances

7 INVENTORIES

Current

At cost:

Stock on Hand - Bar 6,255 7,270

Stock on Hand - Wine 3,789 3,692

Stock on Hand - Cans & Bottles 4,673 5,416

Stock on Hand - Spirits 6,325 5,717

Stock on Hand - Bar Sundries 3,193 2,713

Stock on Hand - Kitchen 7,682 7,242

Stock on Hand - Raffles 1,700 1,700

33,617 33,750



2017 2016

8 OTHER NON-FINANCIAL ASSETS

Current

Borrowing Expenses 631 1,130

9 FINANCIAL ASSETS

Non-Current

Shares in Unlisted Companies 200 200

10 PROPERTY, PLANT AND EQUIPMENT

PLANT AND EQUIPMENT

Plant and Equipment:

At cost 2,061,582 2,019,219

Accumulated depreciation (1,523,778) (1,408,531)

Total Plant and Equipment 537,804 610,688

Core and Non-Core Property of the Club

The Club holds core assets being the Lease of Business premises and car park at 36-38 River Street, Maclean and leasehold improvements. There have been no change in these core assets during the year.

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2017 2016

Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

Plant and Equipment

$

Poker Machines

$

Leasehold Improvements

DirectorsValuation

$

Leased Plant and

Equipment $ Total

$

Balance at 1 July 2015

214,879 122,990 280,040 617,909

Additions 105,348 26,050 131,398

Disposals (6,288) 3,801 (2,487)

Depreciation expense (53,347) (30,973) (51,811) (136,131)

Balance at 30 June 2016

260,592 121,868 228,229 610,689

Additions 12,351 47,805 60,156

Disposals (1,334) (1,334)

Depreciation expense (50,913) (28,983) (51,811) (131,707)

Carrying amount at 30 June 2017

222,030 139,356 222,030 176,418



2017 2016

11 INTANGIBLE ASSETS

Preliminary Expenses - at cost 10,160 10,160

Poker Machine Licences 600,680 600,680

Net carrying amount 610,840 610,840

Total 610,840 610,840

Reconciliation of Formation Expenses

Preliminary Expenses - at cost 10,160 10,160

Poker Machine Licences 600,680 600,680

Closing carrying value at 30 June 2017 610,840 610,840

12 TRADE AND OTHER PAYABLES

Current

Goods and Services Tax 23,193 31,989

Trade Creditors 56,154 62,303

Other Creditors and accruals 7,664 7,063

Provision for Annual Leave & Sick Leave 65,806 53,656

152,817 155,011


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2017 2016

All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value

13 BORROWINGS

Current

Loans - Secured 75,587 119,507

Non-Current

Chattel Mortgage - Esanda 9,504 20,908

Unexpired Interest {313) {1,405)

Total non-current borrowings 9,191 19,503

Total borrowings 84,778 139,010

14 OTHER LIABILITIES

Current

Income in Advance 1,394 1,834

15 PROVISIONS

Provision for Long Service Leave 31,829 26,876

Total provisions 31,829 26,876

Analysis of Total Provisions 31,829 26,876

Non-current 31,829 26,876


2017 2016

16 RETAINED EARNINGS

Retained earnings at the beginning of the financial year

694,853 722,153

Net loss attributable to members of the company

{4,618) {27,299)

Retained earnings at the end of the financial year

690,235 694,854


17 EVENTS AFTER THE REPORT PERIOD

The directors of the company have authorised the financial report to be issued to the members/shareholders as at 2nd October 2017. The directors of the company have the power to amend the financial report after issue, should events arise that require them to do so.

As at 2nd October 2017 the directors are not aware of any conditions that existed at the reporting date that require changes to the disclosures made in the financial report.

As at 2nd October 2017 the directors are not aware of any non-adjusting events after the reporting date that could influence the economic decisions of users of this financial report.

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2017 2016

18 CASH FLOW INFORMATIONReconciliation of Cash Flow from Operations with Profit after Income Tax

Loss after income tax (4,618) (27,299)

Non-cash flows in profit

Amortisation 47,614 47,614

Depreciation 78,106 88,517

Changes in assets and liabilities, net of the effects of purchase and disposals of subsidiaries

(Increase) Decrease in current inventories 133 965

(Increase) Decrease in current receivables (4,438) 607

(Increase) Decrease in prepayments 2,421 (13,554)

Increase (Decrease) in trade creditors (6,149) 17,907

Increase (Decrease) in Other Creditors (8,195) 3,064

Increase (Decrease) in current provisions 12,150 18,821

Increase (Decrease) in non-current provisions 4,953 (8,174)

Increase (Decrease) in income in advance (440) (327)

121,537 128,141


2017 2016

19 FINANCIAL RISK MANAGEMENT

The company is exposed to a variety of financial risks through its use of financial instruments.

The company's overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets.

Financial Assets

Cash and cash equivalents 338,162 323,195

Loans and receivables 6,201 1,763

Deposits 5,000 5,000

Total Financial Assets 349,363 329,958

Financial Liabilities

Bank loan secured 75,587 119,507

Trade and other payables 87,011 101,355

Chattel Mortgage 9,191 19,503

Total Financial Liabilities 171,789 240,365

The company does not have any derivative instruments at 30 June 2017.


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Objectives, Policies and Processes

Risk management is carried out by the company’s risk management committee under the delegated power from the Board of Directors. The Finance Manager has primary responsibility for the development of relevant policies and procedures to mitigate the risk exposure of the company, these policies and procedures are then approved by the risk management committee and tabled at the board meeting following their approval.

Reports are presented at each Board meeting regarding the implementation of these policies and any risk exposure which the Risk Management Committee believes the Board should be aware of.

Specific information regarding the mitigation of each financial risk to which company is exposed is provided below.

Weighted Average Effective Interest

Rate %

2017 2016

Floating Rate Instruments

Bank loan secured 8.50 75,587 119,507

Total floating rate financial liabilities

75,587 119,507



Fixed Interest Rate Maturing

2017 Weighted Average Effective Interest

Rate %

Within 1 Year

$1 to 5 Years

$

Overs Years

$Total

$

Financial liabilities due for payment

Bank loan secured 8.50 52,125 23,462 75,587

Chattel Mortgage 7.36 9,191 9,191

Total expected outflows

61,316 23,462 84,778

Net (outflow)/inflow on financial instruments

(61,316) (23,462) (84,778)

Liquidity Risk

The Company presently has loans with the Commonwealth Bank Maclean. The balance owing on these loans as at 30 June 2017 is $75,587.

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Fixed Interest Rate Maturing

2016 Weighted Average Effective Interest

Rate %

Within 1 Year

$1 to 5 Years

$

Overs Years

$Total

$

Financial liabilities due for payment

Bank loan secured 8.50 52,125 67,382 119,507

Chattel Mortgage 7.36 10,312 9,191 19,503

Total expected outflows

62,437 76,573 139,010

Net (outflow)/inflow on financial instruments

(62,437) (76,573) (139,010)

The company does not hold any financial assets with terms that have been renegotiated, but which would otherwise be past due or impaired.

The other classes of receivables do not contain impaired assets.



Fair Values

The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

Carrying Amount

$

2017 Net Fair

Value$

Carrying Amount

$

2016 Net Fair

Value$

Financial Assets

Cash and cash equivalents 338,162 338,162 323,195 323,195

Loans and receivables 6,201 6,201 1,763 1,763

Deposits 5,000 5,000 5,000 5,000

Total Financial Assets 349,363 349,363 329,958 329,958

Financial Liabilities

Bank loan secured 75,587 75,587 119,507 119,507

Trade and other payables 87,011 87,011 101,355 101,355

Chattel Mortgage 9,191 9,191 19,503 19,503

Total Financial Liabilities 171,789 171,789 240,365 240,365

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20 COMPANY DETAILS

21 SEGMENT REPORTING

The registered office of the company is:

Maclean-Lower Clarence Services Club Limited 36-38 River Street, MACLEAN NSW 2463

The principal place of business is:

36-38 River Street, MACLEAN NSW 2463

Maclean-Lower Clarence Services Club Limited operates in the Licenced Club Industry at 36-38 River Street Maclean NSW.


The directors of the company declare that:

1. The financial statements and notes, as set out on pages 1 to 22, for the year ended 30 June 2017 are in accordance with the Corporations Act 2001 and:

(i) comply with Accounting Standards, which, as stated in basis of preparation Note 1 to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and

(ii) give a true and fair view of the financial position and performance of the company.

3. In the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director:

J De Roos - President


DIRECTORS’ DECLARATION

AUDITORS REPORT

2017


INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MACLEAN-LOWER CLARENCE SERVICES CLUB LIMITED A.B.N. 89 001 663 494

Report on the Financial Report

We have audited the accompanying financial report of Maclean-Lower Clarence Services Club Limited which comprises the statement of financial position as at 30 June 2017 and the state-ment of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Cor-porations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in ac-cordance with Accounting Standard AASB 101: Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards (IFRS).

Auditors’ Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We con-ducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also in-cludes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Independent

In conducting our audit, we have complied with the independence requirements of the Corpo-rations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the company, would be in the same terms if given to the directors as at the time of this auditor’s report.

Auditors’ Opinion

In our opinion:

(a) the financial report of Maclean-Lower Clarence Services Club Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2017 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;and

(b) The financial report also complies with International Financial Reporting Standards as disclosed in Note 1.

Name of Firm: D W BROWN ACCOUNTANCY SERVICES PTY LTD Chartered Accountants

Name of Partner:

DARRELL BROWN

Address: 58 River Street, MACLEAN NSW 2463



PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 30 JUNE 2017

2017 2016

SALES

Sales 2,246,463 2,119,904

LESS: COST OF GOODS SOLD

Opening Stock 32,050 33,340

Purchases 490,689 484,446

Closing Stock (31,917) (32,050)

490,822 485,736

LESS: MANUFACTURING COSTS

Bar Waste 3,295 2,943


Analysis Expenses 18,587 21,955

Poker machine Supplementary Tax 15,643 36,924

Service Fees 17,820 46,567

Leasing charges - System 7000 eCo 26,696 26,696

Lease - Poker Machine 74,057

Poker Machine Expenses 9,821

Wages - Kitchen 374,701 325,731

Gas 12,540 8,186

Repairs & Maintenance 1,594 1,557

Consumables 7,685 4,076

Cooking Oil 4,584 2,125

596,006 507,733

GROSS PROFIT FROM TRADING 1,159,635 1,126,435

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2017 2016

OTHER INCOME

Commissions Received 14,823 15,259

Subscription 10,172 14,573

Market Prize 103,476 98,663

Sponsorship 2,750

Dividends Received 600

Sundry Income 51,519 21,665

Profit on sale of property, plant and equipment 5,986

186,576 152,910

1,346,211 1,279,345

EXPENSES

Accountancy Fees 8,196 7,965

Advertising 24,491 21,224

Amortisation 51,811 51,811

Auditor's Remuneration 8,476 7,935

Bank Charges 4,821 4,306

Borrowing Expenses 499 499

Cleaning 25,240 21,664

Contract Cleaning 48,000 48,000


Donations 8,684 1,130

Electricity 61,202 53,516

Entertainment Expenses 5,103 6,844

Freight & Cartage 6,760 6,622

Insurance 34,133 33,785

Interest Paid 9,327 13,835

Loss on Sale of Non-Current Assets 3,049

Market Expenses 122,168 118,285



2017 2016

Members Amenities 90,624 92,359

Motor Vehicle Expenses 6,519 6,508

Night Security 7,626 7,070

Permits, Licences & Fees 3,707 2,004

Printing & Stationery 22,464 23,571

Promotions 64,581 62,552

Protective Clothing 3,034

Rates 11,786 12,715

Rent 49,554 49,406


Sky channel 33,668 32,757

Sponsorship 4,000 5,650

Staff Training & Welfare 11,387 12,060

Subscriptions 3,502 6,213

Superannuation Contributions 73,769 68,629

Telephone - Office 6,983 5,021

Wages 450,456 417,898

1,350,829 1,306,644

Loss before income tax (4,618} (27,299}

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2017 2016

BULK BEER TRADING STATEMENT

Sales 292,457 256,023



Purchases 119,175 121,871

Less Closing Stock {6,255) {7,270)

120,190 119,101

LESS: MANUFACTURING COST

Bar Waste 3,295 2,943

Gas - Beer 3,281 4,109


14,261 11,128

GROSS PROFIT FROM TRADING 158,006 125,794



2017 2016

WINE TRADING STATEMENT

Sales 64,797 51,771



Purchases 23,960 21,443

Less Closing Stock {3,789) (3,692)

23,863 21,901


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2017 2016

SOFTDRINK TRADING STATEMENT

Sales 83,928 75,013



Purchases 35,447 31,638

Less Closing Stock (3,193) (2,713)

34,967 33,851




2017 2016

PACKAGED BOTTLES & CANS TRADING STATEMENT

Sales 61,844 50,855



Purchases 31,992 29,999

Less Closing Stock (4,673) (5,416)

32,735 29,783


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2017 2016

POKER MACHINE STATEMENT

Poker Machine Revenue 929,985 896,196



Analysis Expenses 18,587 21,955

Poker Machine Supplementary Tax 15,643 36,924

Service Fees 17,820 46,567

Leasing charges - System 7000 eCo 26,696 26,696

Lease - Poker Machine 74,057

Software Maintenance 9,821

191,607 163,115




2017 2016

CLUB KENO & TAB STATEMENT

Club Keno & TAB Revenue 49,438 42,138




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2017 2016

KITCHEN TRADING STATEMENT

Sales - kitchen 713,688 705,150



Purchases 262,239 262,440

Less Closing Stock {7,682) {7,242)

261,799 263,112


Bar Waste 374,701 325,731

Gas - Beer 9,259 4,077


388,544 331,933




2017 2016

SPIRIT TRADING STATEMENT

Sales 50,326 42,758



Purchases 17,876 17,055

Less Closing Stock {6,325) (5,717)

17,268 17,988


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Maclean Services Club36-38 River StPO Box 6Maclean NSW 2463

Email: [email protected]: www.mlcsc.com.au

Phone: 02 6645 2946 Kitchen: 02 6645 2556Fax: 02 6645 4235

2016-2017 ANNUAL REPORT - Maclean Services Club · · 2017-10-134 Maclean Loer Clarence Services...

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