cranbourne turf club annual report - 2010 - 11

1– Annual Report 2010/2011

Cranbourne Turf Club IncAnnual Report 2010/2011

Cranbourne

Turf Club

Country Racing Club

of the Year 2010/11


Annual General MeetingThe Annual General Meeting of the Cranbourne Turf Club Inc will be held in the Manikato Room, Cranbourne Racecourse on Wednesday 23 November 2011 @ 6.00pm.

BUSINESS1. Apologies2. ConfirmationofMinutesofAnnualGeneralMeetingheldonWednesday24November20103. Chairman’s Report4. Treasurer’sReport5. To receive and adopt Financial Statement and Auditors Report for season 2010-20116. To appoint Auditors for 2011-2012 season7. To elect three members to the committee

ThefollowingnominationshavebeenreceivedDavidCook,GarryRunge&GeoffWhiffin.Asnoothernominationshavebeen received, they will be duly elected.

NEIL BAINBRIDGECHIEF EXECUTIVE OFFICER


Chairman’s Report

It is my pleasure as Chairman to present the 2010-2011 Chairman’s Report.

The 2010-2011 racing season has been an outstanding year for the Cranbourne Turf Club. The clubs growth strategies have enabled the clubs financialposition to turn around significantly inrecent years and place Cranbourne in a very strong financial position. Thisyeartheoperatingprofitof$121,402isanincreaseofover$186,000fromtheprevious year.

What is extremely pleasing for the Club is that the improvement across many areas has been the result of well made plans, hard work and dedication that I believe has laid the foundation for continued success of the Club. Its been widely acknowledged that the Clubs move to exclusive Sunday meetings has provided increased opportunities. However, this is not the reason for success. Success has been achieved due to a number of factors, largely based on the Club making good decisions and establishing a work force unequalled in Country Victoria.Our commitment to take risks and strive for innovation has continually been embraced by industry participants and hasraisedtheprofileofourgreatclub,whichwasestablished143yearsago.

Reality is, success rarely comes overnight, however success does come to those who make the right decisions when a clear vision and direction is established.

The Clubs successful year was crowned in August 2011 when the Club won the prestigious Victorian Country Racing Club of the Year award.

In many ways 2010-2011 will be remembered as the year that transformed thoroughbred racing in Cranbourne. The platform was laid for the development of Night Racing withconstructiononthe$6.7Mprojectcommencing in May 2011. Night Racing has long been a vision of the Club and it’s extremely pleasing that Night Racing will commence in 2011-2012 season. Cranbourne will be the firstandonlyCountryRacingClub toconduct Night Racing, with Moonee Valley continuing its current Night Racing program on Friday nights.

This season the Club also completed a Master Plan for the Cranbourne Racing Centre, that includes both racing and training activities. The Master Plan will be the road map for future development


Chairman’s Report Cont...

andprovidethestimulusforsignificantgrowth and development through the precinct.

From an operational view point, the Club has had an exceptional year. Raceday attendancesexceeded40,000patrons,with admission revenues up 17% from the previous season, whilst corporate hospitality increased 21% this season.

A highlight of the year was undoubtedly the TAB Cranbourne Cup day. A crowd of over 9,000 patrons watched local trainer Michael Kent run the quinella with Starmon winning from My Bentley. The day was perfectly capped with an after race concert from Gabriella Cilmi who is a six time ARIA winner including Best Female, Best Album and the Single of the Year. I would like to thank our major partner Tabcorp for theirwonderful support of the Club. We look forward to working with Tabcorp well into the future.

To all our partners and sponsors I say thank you. Without their support racing at Cranbourne would not be as healthy as it is today.

I would also like to take the opportunity to thank our partners and the racing community who rallied with us to raise funds for communities in Australia that weredevastatedby floods in January2011. Over the course of two race meetingstheClubraisedover$76,000for affected areas, with a staggering $54,000beingraisedfortheBenjeroopcommunity in northern Victoria, on the inauguralBenjeroopCupmeetingheldon 15 May 2011.

I would like to congratulate local trainer Michael Kent this season who won his fourth straight trainers premiership. In addition to successfully defending his premiership, as mentioned earlier Michael quinelled the TAB Cranbourne Cup. Craig Newitt collected the Cranbourne Jockeys PremiershipwhilstupandcomingapprenticeJake

Noonan won the Apprentice JockeysPremiership.

On behalf of the committee I would like to thank the members for their support during the season. Membership is vitally important to the success of the Club and in recent years the number of new members joining our Clubhas been very satisfying. Whilst night racing will significantly change ourproduct offering, I firmly believe thatmembership numbers will continue to grow with the excitement of Friday and Saturday Night racing.

We look forward to the future of night racing as we strive to improve our facilities for members and race day patrons. A special thank you to Rob Warburton who has been assisting the club throughout the design process.

Our track continues to race extremely well and has gained a strong reputation within the racing industry. Full credit


to all our track staff for their tireless work, especially our Tracks & Facilities Manager Simon Hodgson and Racecourse Manager Benny Spierings for their hard work and dedication.

A special thank you also to our administration team who have delivered some outstanding results across all elements of the thoroughbred racing industry in Cranbourne. The Club plays amajor role in the Victorian industry,not just through racing but also withthe management responsibilities of the states premier training centre.

To my fellow committee members, thank you for your support throughout what has been an exciting and rewarding year for the Club. Special thanks to myViceChairman’sGeoffWhiffinandAndrew Brumby for the assistance during the year. During the year life member Dr Sam Birman retired from the committee after 39 years of service having commenced

Chairman’s Report Cont.

in 1972. Sam has been an outstanding contributor to the success of the Club, whilst also serving as the Club’s Medical Officer since 1970. A warmwelcometoSeanClarksonwhojoinedthecommitteeduringtheyearinfillingSam’s vacant position in March 2011.

In closing I would like to thank Racing Victoria and Country Racing Victoria for their continued support of racing in Cranbourne and their commitment to the Club’s vision. During the 2010-2011 season many significantannouncements that were made would not have been possible without the support of the industry. Those included the opening of the $3.2M all weathertraining track at the Cranbourne TrainingComplexand$6.7Minfundingfor lighting the Cranbourne Turf Club for Night Racing.

Finally, I am pleased to sign off an exception year for the Cranbourne Turf Club that has delivered some

outstanding results, whilst also laying a solid platform for the future success of the Club. Cranbourne has a significant role to play inthe Victorian Racing Industry and we are well placed to achieve our vision.

ROBIN DALEYCHAIRMAN


Racing ReportThe 2010/11 racing season was the club’s third year of racing exclusively on Sundays’ and was yet again a great success for the club. Attendance levels were again very strong with the fast growing south eastern growth corridor supporting racing at Cranbourne.

Strong Sunday programs became a feature, along with large crowdsandplentyof ownersenjoying theconvenience of Sunday racing and the close proximity of Cranbourne to the metropolitan region.

Racing was well supported across the season with strong racing and wagering results achieved.

Cranbourne continues to be a popular launching pad for the stars of tomorrow. On Cranbourne Cup Day the MichaelKenttrainedABSOLUTELYflewhomeinthefirstraceandfinished0.1lengthsfromthewinnerondebut.ABSOLUTELYwentontowintheAJCOaksin2011.

LIGHTS OF HEAVEN won a maiden by seven lengths ondebuton23January2011andwentontothewinthe SA Oaks two months later and was at one stage equalfavouriteforthe2011CaulfieldCup.


Racing Report Cont.TAB CRANBOURNE CUPTabcorp became the new sponsors of the Cranbourne Cupand again offered a $1mil bonus to any horsethatcouldwintheCranbourneCupandCaulfieldCupthe week later. Anincreaseof$25,000sawtheTABCranbourneCupprizemoneyjumpto$175,000(plus$6,000trophy)in2010 which was saw a highly competitive field ledout by the Irish import and Lee Freedman trained, FANJURA.CranbournetrainerMichaelKentquinelledtheCranbourneCupwithSTARMON(riddenbyGlenBoss) and MY BENTLEY (Craig Newitt). StarmongaveKenthisfirsteverlocalCupwinner.Itbecamea Cranbourne trifecta in the feature race with TUBE, trainedbyDamienWilliamsfinishinginthirdposition.Whilst the bonus received a great deal of publicity, the winner of the Cranbourne Cup STARMON did not run intheCaulfieldCup.Cranbourne Cup Day also saw the inaugural running ofthe$75,000ApacheCatClassic,anOpenHandicaprun over 1000m. The Apache Cat Classic was hotly contested with the local crowd favourite STANZOUT carrying the hopes and dreams of a growing suburb.NewZealand trainedCOUPALIGN(riddenbyGlenBoss)tookouttheinauguralApacheCatClassicwithSTANZOUTflashinghomelatecarrying60.5kgs.


Racing Report Cont.PREMIERSHIPSCongratulations to our 2010-2011 premiership winners. Local Cranbourne trainer Michael Kent collected his fourth straight premiershipwithanimpressive21winsandafurther38placings.Michaelisagreatsupporterofhishometowntrackwith129runnersfortheseasonandwonhisfirsteverCranbourneCupwhenStarmonsalutedinthebigrace.

CraigNewittwonhissecondCranbournejockeyspremiershipswith14wins,whilstapprenticeriderJakeNoonanwonhisfirstCranbourneApprenticeJockey’sPremiership.

Apprentice Jockey Wins Seconds Thirds Starts Strike RateJNoonan 10 5 5 55 18%IGundogdu 7 5 5 49 14%AMcCabe 7 4 8 60 12%JMaskiell 4 4 1 37 11%K Mallyon 2 3 2 17 12% Senior Jockeys Wins Seconds Thirds Starts Strike RateCNewitt 14 16 8 88 16%BRawiller 11 13 14 71 15%LNolen 10 2 8 38 18%CSymons 9 11 10 88 10%BMelham 8 15 10 64 13% Trainer Wins Seconds Thirds Starts Strike RateM Kent 21 22 16 129 16%PGMoody 13 5 5 48 27%RSmerdon 9 4 6 47 19%LFreedman 8 0 4 26 31%RGriffiths 7 6 4 43 16%


Treasurer’s ReportTheCranbourneTurfClubrecordedaprofitforthe2010/11financialyearof$121,402,anincreaseofover$186,000on last yearand thehighest profitrecorded inanumberofyears.Thecashprofit,akey statistic referred to by Country Racing Victoria was $235,707, more than double the next bestresult of the last seven years.

There were a number of significant increases inrace day income during the year highlighted by a 35% increase in sponsorship, a 21% increase in hospitality packages and an 18% increase inadmissions income. The total of these amounts meant raceday incomewasclose to$1.6millionfortheyear,morethan$250,000upontheprevioushighest annual total.

Another significant factor for the profit increasewas the improved result of Trios which saw a doublinginprofitofthevenuefromtheprioryear.Trios achieved good income growth from bars and gaming and under a new management structure foundsignificantcostsavings.Triosisanextremelyimportant part of our business and the success of itdirectlybenefitsourcluballowingus to reinvestin the facilities for thebenefitofallmembersandpatrons.


Treasurer’s Report Cont.

The Club’s inhouse catering department continued to grow during the year, now catering for all Cranbourne Greyhound Club events, 20 Cranbourne Harness Club race meetings, Yarra Valley Racing Club events as well as a number of non race day functions. Over 140 events are now catered forannually by over 150 food and beverage staff.

Another highlight for the year was our ability to raiseover$76,000forfloodvictimsinbothVictoriaand Queensland. This money was raised through corporate donations as well as the club contributing 100% of gate admissions and a percentage of food and beverage sales from our 23rd January raceday.

While the Club has successfully increased race day and catering income, there are parts of the business which we have little control of. One such area is oncourse wagering, which continued the declining trend of the past decade. The fall in commission over thepast12month’swas2%whilstsince2004/05the decrease is $92,000 or 38%.Over the sametime frame total attendance at our race meetings hasincreasedby17%,reflectingthesignificantshiftof betting from the TAB to corporate bookmakers

through both phone and internet options.

Prizemoney and returns to owners of over $3.5million was paid out on races conducted during 2010/11, with a record $175,000 on offer for theCranbourne Cup. This places Cranbourne near the top of the list for country club returns.

In closing, the Club has enjoyed an extremelysuccessful 2010/11 season culminating in receiving the Country Racing Victoria Club of the Year award. This award recognises the hard work and terrificresults our dedicated team has achieved. We are wellsituatedfinanciallyasweheadintoanewandexciting phase of night racing.

SILVIO MARINELLITREASURER

Treasurer’s Report Cont.



2011 2010Note $ $

Revenue 2 2,774,166 2,366,602

Employee benefits expense (1,138,768) (1,027,069)

Finance Costs 3 - -

Depreciation and amortisation expense 3 (167,472) (178,585)

Other expenses 3a (1,396,692) (1,278,170)

Profit / (Loss) before income tax 71,234 (117,222)

Income tax expense 1(a) - -

Profit / (Loss) for the year 71,234 (117,222)

Other comprehensive income after income tax 50,168 52,552

Total comprehensive income for the year 121,402 (64,670)

Total comprehensive income attributable to members of the entity 121 402 (64 670)

STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 JULY 2011

CRANBOURNE TURF CLUB INCORPORATED

The accompanying notes form part of this financial report

Total comprehensive income attributable to members of the entity 121,402 (64,670)



2011 2010Note $ $

Current AssetsCash and Cash equivalents 4 186,799 121,695 Trade and Other receivables 5 103,582 170,574 Inventories 6 46,636 52,307 Other Current Assets 7 18,057 17,802 Total Current Assets 355,074 362,378

Non-Current AssetsFinancial Assets 8 1,563,524 1,414,803 Property, plant and equipment 9 12,825,594 12,909,548 Total Non-Current Assets 14,389,118 14,324,351

Total Assets 14,744,192 14,686,729

Current LiabilitiesTrade and Other Payables 10 262,234 308,993 Provisions 11 68,609 58,581 Total Current Liabilities 330,843 367,574

Non-Current LiabilitiesProvisions 11 31,759 8,799 Total Non-Current Liabilities 31,759 8,799

Total Liabilities 362,602 376,373

Net Assets 14,381,590 14,310,356

EquityReserves 12 2,980,917 3,031,085 Retained Earnings 11,400,673 11,279,271 Total Equity 14,381,590 14,310,356

STATEMENT OF FINANCIAL POSITIONAS AT 31 JULY 2011




CapitalRetained Revaluation GrantEarnings Surpluses Reserve Total

2010

Balance at beginning of the financial year 11,343,941 2,563,110 520,527 14,427,578 Profit/(loss) for the year (117,222) - - (117,222) Other comprehensive income / (expenses) 52,552 - (52,552) -

Balance at end of the financial year 11,279,271 2,563,110 467,975 14,310,356

CapitalRetained Revaluation GrantEarnings Surpluses Reserve Total

2011

Balance at beginning of the financial year 11,279,271 2,563,110 467,975 14,310,356 Profit/(loss) for the year 71,234 - - 71,234 Other comprehensive income / (expenses) 50,168 - (50,168) -

Balance at end of the financial year 11,400,673 2,563,110 417,807 14,381,590


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2011



2011 2010Note $ $

Cash Flows From Operating Activities

Receipts from racing and gaming activities 2,460,650 2,228,753 Operating grants received 3,000 - Payments to suppliers and employees (2,549,485) (2,389,996) Interest paid - - Interest received 8,712 6,463 Distributions received from Joint Venture 180,289 192,592

Net cash flows from / (used in) operating activities 103,166 37,812

Cash Flows From Investing Activities

Payments for property, plant and equipment (92,497) (65,484) Proceeds from sale of property, plant and equipment 54,435 -

Net cash flows from/(used in) investing activities (38,062) (65,484)

Net increase/(decrease) in cash held 65,104 (27,672)

Cash at the beginning of the financial year 121,695 149,367

Cash at the end of the financial year 4 186,799 121,695


STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 JULY 2011




NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 JULY 2011

NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe financial report covers Cranbourne Turf Club Inc as an individual entity. Cranbourne Turf Club Inc. is an associationincorporated in Victoria under the Associations Incorporation Act (Victoria) 1981.

Cranbourne Turf Club Inc. is exempt from income tax under Section 50-45 of the Income Tax Assessment Act 1997.

(b) InventoriesInventories consist of food and beverages and are measured at the lower of cost and net realisable value.Costs are assigned on a specific identification basis and include direct costs and appropriate overheads, if any.

(c) Property, Plant and EquipmentEach class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulateddepreciation and impairment losses.

PropertyLeasehold buildings and improvements are shown at committee's valuation. A valuation is carried out by the clubsinsurer on a periodic but at least triennial basis to ensure that the carrying amount of leasehold buildings and improvementsis not greater than fair value.

Cranbourne Turf Club Inc has elected to early adopt the pronouncements AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010–2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements to the annual reporting period beginning 1July 2010.

The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Associations Incorporation Act 1981 .

Basis of Preparation

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

The financial statements has 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

(a) Income Tax

g

Any accumulated depreciation at the date of any revaluation is eliminated against the gross carrying amount of the assetand the net amount is restated to the revalued amount of the asset.

Plant and equipmentPlant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by the committee to ensure it is not in excess ofthe recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected netcash flows that will be received from the assets' employment and subsequent disposal. The expected net cash flowshave not been discounted to their present values in determining recoverable amounts.

The cost of fixed assets constructed within the club includes the cost of materials, direct labour, borrowing costs andan appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the assets' carrying amount or recognised as a separate asset, as appropriate,only when it is probable that future economic benefits associated with the item will flow to the club and the cost ofthe item can be measured reliably. All other repairs and maintenance are charged to the income statement duringthe financial period in which they are incurred.

DepreciationThe depreciable amount of all fixed assets including building and capitalised lease assets, is depreciated on astraight-line basis over their useful lives to the club commencing from the time the asset is held ready for use.Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimateduseful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset Depreciation rateLeasehold Improvements 2.50% to 10.0%Office Equipment 10.0% to 33.3%Computer Equipment 33.33%Motor vehicles 20.00%Plant & equipment 10.00% to 33.3%Fixtures & Fittings 20.00% to 33.3%




The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at each balance date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount isgreater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains andlosses are included in the statement of comprehensive income. When revalued assets are sold, amounts included inthe revaluation relating to that asset are transferred to retained earnings.

(d) Financial Instruments

Initial Recognition and MeasurementFinancial assets and financial liabilities are recognised when the entity becomes a party to the contractual provision to the instrument. For financial assets, this is equivalent to the date that the association commits itself to either purchaseor sell the asset (i.e. trade date accounting is adopted)

Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classifiedat "fair value through profit and loss" in which case transaction costs are expensed to the profit and loss immediately

Classification and subsequent measurementFinance instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method orcost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as: (i) the amount at which the financial asset or financial liability is measured at initial recognition; (ii) less principal repayments; (iii) plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and (iv) less any reductionfor impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs andother premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of thefinancial instrument to the net carrying amount of the financial asset or financial liability.

Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

The club does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments.

(i) Financial assets at fair value through profit or loss

(ii) Loans and receivables

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments,and it is the association's intention to hold these investments to maturity. They are subsequently measured at amortised cost using the effective interest rate method.

The association has not held any held-to-maturity investments in the current or comparative financial year.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into othercategories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments.

Financial assets are classified at “fair value through profit or loss” when they are held for trading for the purpose of short-term profit taking, where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised costLoans and receivables are included in current assets, except for those which are not expected to mature within 12 months after the end of the reporting period, which will be classified as non-current assets




(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost.

Fair value

ImpairmentAt each reporting date, the club assesses whether there is objective evidence that a financial instrument has been impaired.In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determinedetermine whether an impairment has arisen. Impairment losses are recognised in the statement of comprehensive income.

DerecognitionFinancial assets are derecognised where the contractual right to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks, and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire.The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(e) Impairment of AssetsAt each reporting date, the club reviews the carrying values of its tangible and intangible assets to determine whether thereis any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, beingthe higher of the asset's fair value less costs to sell and value-in-use, is compared to the asset's carrying value. Any carrying value.Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income.

Where it is not possible to estimate the recoverable amount of an individual asset, the club estimates the recoverableamount of the cash-generating unit to which the asset belongs.

(f) Employee Benefits

Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models

Provision is made for the Club’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. These cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows.

(g) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly liquidinvestments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown withinborrowings in current liabilities on the balance sheet.

(h) Revenue and Other IncomeRevenue is measured at the fair value of the consideration received or receivable after taking into account any tradediscounts and volume rebates allowed. Any income deferred is treated as the provision of finance and is discounted ata rate of interest that is generally accepted in the market for similar arrangements. The difference between the amountinitially recognised and the amount ultimately received is interest revenue.

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significantrisks and rewards of ownership of the goods and the cessation of all involvement in those goods.

Interest revenue is recognised using the effective interest rate method, which, for floating rate financial assets is the rateinherent in the instrument. Dividend revenue is recognised when the right to receive a dividend has been established.

Revenue from the provision of memberships subscriptions is recognised on a straight-line basis over the financial year.

All revenue is stated net of the amount of goods and services tax (GST).

(i) Goods and Services Tax (GST)

Cash flows are included in the statement of cash flows on a gross basis, except for the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the ATO. The GST component of financing and investing activities which is recoverable from, or payable to, the ATO is classified as a part of operating cash flows. Accordingly, investing and financing cash flows are presented in the statement of cash flows net of the GST that is recoverable from, or payable to, the ATO

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the statement of financial position




(j) Comparative Figures

(k) Trade and Other Payables

(l) Provisions

NOTE 2. REVENUE AND OTHER INCOME 2011 2010Sales Revenue $ $

Non raceday catering 214,731 300,971Racing Income 1,991,622 1,740,289

Other RevenueGaming revenue 315,524 155,204Grant Income 3,000 -Industry Prizemoney Funding 63,720 72,520Interest received 8,712 6,463Joint venture distributions 13,486 3,259Other revenue 117,913 87,898Profit/(loss) on disposal of plant & equipment 45,458 -

2,774,166 2,366,602

NOTE 3.PROFIT FOR THE YEAR

EXPENSESDepreciation of non-current assets:

Depreciation 167,472 178,585

Finance costs - -

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

Provisions are recognised when the association has a legal or constructive obligation, as a result of past events, for which itis probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the association during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(a) Other expensesAdministration & Marketing 314,446 270,472Non raceday catering 134,578 176,756Racecourse maintenance 111,229 115,477Race day expenses & services 761,408 643,787Prize monies, trophies & other owners benefits 75,031 71,677

1,396,692 1,278,170

NOTE 4. CASH AND CASH EQUIVALENTSCash at bank 28,244 8,011Cash on hand 5,018 1,829Cash on deposit 153,537 111,855

186,799 121,695

The effective interest rate on short term bank deposits was 4.0% (2010 4.5%);these deposits have an average maturity of 30 days

Reconciliation of cashCash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows is reconciled to items in the statement of financial position as follows

Cash and cash equivalents 186,799 121,695

NOTE 5. TRADE AND OTHER RECEIVABLESCurrentTrade receivables 54,421 118,402Other Receivables 49,161 52,172Total current trade and other receivables 103,582 170,574

Financial assets classified as loans and receivablesTrade and other receivablesTotal current 103,582 170,574




2011 2010NOTE 6. INVENTORIES $ $CurrentAt Cost - Stock of food and beverages 46,636 52,307

46,636 52,307NOTE 7. OTHER CURRENT ASSETSCurrentPrepayments 18,057 17,802

18,057 17,802NOTE 8. FINANCIAL ASSETS - NON CURRENTInvestment in Radio Sport 927 at cost 82,450 82,450Investment in Cranbourne Racing Centre Joint Venture 117,260 103,774Investment in Trios Tabaret Joint Venture 1,363,814 1,228,579

1,563,524 1,414,803

NOTE 9. PROPERTY, PLANT AND EQUIPMENT

Leasehold buildings & Improvements at Committee Valuation July 1997At valuation 11,481,858 11,481,858Less accumulated depreciation (77,751) (61,494)

11,404,107 11,420,364Office EquipmentAt cost 14,057 14,057Less accumulated depreciation (13,192) (11,523)

865 2,534Computer EquipmentAt cost 7,778 15,887Less accumulated depreciation (7,778) (14,415)

- 1,472Motor VehiclesAt cost 15,500 33,400Less accumulated depreciation (15,500) (28,548)

- 4,852Plant and equipmentAt cost 712,285 636,791Less accumulated depreciation (436,592) (394,885)

275,693 241,906Furniture and fittingsAt cost 439 799 491 374At cost 439,799 491,374Less accumulated depreciation (387,734) (414,263)

52,065 77,111Catering EquipmentAt cost 84,330 66,189Less accumulated depreciation (36,695) (20,366)

47,635 45,823Industry Funded AssetsAt cost 1,160,774 1,090,774Less accumulated depreciation (124,268) (79,498)

1,036,506 1,011,276Work In ProgressAt cost 8,723 104,210Less accumulated depreciation - -

8,723 104,210

Total property, plant and equipment 12,825,594 12,909,548

Movements in carrying amounts

Leasehold buildings & Improvements at Committee Valuation July 1997Balance at 1 August 2010 11,420,364 11,436,792Additions - -Disposals - -Depreciation expense (16,257) (16,427)Carrying amount at 31 July 2011 11,404,107 11,420,364

Office EquipmentBalance at 1 August 2010 2,534 5,345Additions - -Disposals - -Depreciation expense (1,669) (2,811)Carrying amount at 31 July 2011 865 2,534

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




2011 2010Computer Equipment $ $Balance at 1 August 2010 1,472 3,597Additions - -Disposals - -Depreciation expense (1,472) (2,125)Carrying amount at 31 July 2011 - 1,472

Motor VehiclesBalance at 1 August 2010 4,852 11,257Additions - -Disposals (314) -Depreciation expense (4,538) (6,405)Carrying amount at 31 July 2011 - 4,852

Plant and equipment at costBalance at 1 August 2010 241,906 275,985Additions 99,844 21,693Disposals (8,663) -Depreciation expense (57,394) (55,772)Carrying amount at 31 July 2011 275,693 241,906

Furniture and fittingsBalance at 1 August 2010 77,111 129,051Additions - 2,550Disposals - -Depreciation expense (25,046) (54,490)Carrying amount at 31 July 2011 52,065 77,111

Catering EquipmentBalance at 1 August 2010 45,823 36,936Additions 18,142 22,171Disposals - -Depreciation expense (16,329) (13,285)Carrying amount at 31 July 2011 47,635 45,823

Industry Funded AssetsBalance at 1 August 2010 1,011,276 1,038,545Additions 70,000 -Disposals - -Depreciation expense (44,769) (27,269)Carrying amount at 31 July 2011 1,036,506 1,011,276

Work In ProgressBalance at 1 August 2010 104,210 85,140Additions 8,723 19,070Transfer to Assets (104,210) -Depreciation expense - -Carrying amount at 31 July 2011 8,723 104,210

Total property, plant and equipment 12,825,594 12,909,54765,484

NOTE 10. TRADE AND OTHER PAYABLESCurrentTrade payables 95,937 99,243Sundry payables 55,142 40,110Income in advance 53,047 123,689Employee benefits 58,108 45,951

262,234 308,993

a) Financial liabilities at amortised cost classified as trade and other payablesTrade and other payables:

Total current 262,234 308,993Total non-current

262,234 308,993Less employee benefits (58,108) (45,951)Less income in advance (53,047) (123,689)Financial liabilities as trade and other payables 151,079 139,353

Collateral pledgedNo collateral has been pledged for any trade and other payable balances




Long-termEmployee

NOTE 11. PROVISIONS Benefits TotalOpening balance at 1 August 2010 67,380 67,380Additional provisions raised during year 32,988 32,988Balance at 31 July 2011 100,368 100,368

Analysis of total provisionsCurrent 68,609 58,581Non Current 31,759 8,799

100,368 67,380Provision for Long-term Employee BenefitsA provision has been recognised for employee entitlements relating to long service leave. In calculating the present valueof future cash flows in respect of long service leave, the probability of long service leave being taken is based on historicaldata. The measurement and recognition criteria relating to employee benefits have been included in Note 1.

NOTE 12. RESERVESAsset and Revaluation ReserveThe asset revaluation reserve records revaluation of non current assets.

Capital Grant ReserveThe capital grant reserve records receipt of capital funding from Racing VictoriaLimited and Country Racing Victoria Limited prior to 1st August 2006.

NOTE 13. CONTINGENT LIABILITIESThere were no contingent liabilities at the date of this report to affect the financial statements.

NOTE 14. RELATED PARTY TRANSACTIONSThe names of persons who were members of the Committee at any time during the year were:Dr Sam Birman Robin Daley ChairmanPaul Birman Silvio MarinelliAndrew Brumby Ken McCormackSean Clarkson Garry SidwellDavid Cook Geoff Whiffin

No remuneration or retirement benefits are payable as the positions are voluntary. The following Committee members of the Club have received benefits from the business transactions arising in the ordinary course of the Club's business and conducted at ordinary commercial terms and conditions no more favourable than those it is reasonable to expect the Club would have adopted ifconditions no more favourable than those it is reasonable to expect the Club would have adopted ifdealing at arm's length in the same circumstances.

Committee MemberNil

NOTE 15. KEY MANAGEMENT PERSONNEL COMPENSATIONThe totals of remuneration paid to key management personnel (KMP) 2011 2010of the Club during the year are as follows: $ $Key management personnel compensation 241,796 229,173

NOTE 16. FINANCIAL RISK MANAGEMENT -1 0

The Club's financial instruments consist mainly of deposits with banks, local money market instruments,short term investments, accounts receivable and payable.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in theaccounting policies to these financial statements as follows:

Financial Assets NoteCash and cash equivalents 4 186,799 121,695Loans and receivables 5 103,582 170,574Total Financial Assets 290,381 292,269

Financial LiabilitiesFinancial Liabilities at amortised cost - trade and other payables 10 151,079 139,353Total Financial Liabilities 151,079 139,353

NOTE 17. CLUB DETAILSThe registered office and principal place of business is Grant Street, Cranbourne Vic 3977

NOTE 18. SEGMENT REPORTINGThe club operates in the thoroughbred racing sector in Victoria.


In the opinion of the committee the financial report as set out in pages 1 to 11

1 Presents a true and fair view of the financial position of the Cranbourne Turf Club Inc. as at31 July 2011 and its performance for the year ended on that date in accordance withAustralian Accounting Standards, (including Australian Accounting Interpretations) of theAustralian Accounting Standards Board.

2 At the date of this statement, there are reasonable grounds to believe that CranbourneTurf Club inc. will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the committee and is signed for and on behalfof the Committee by:

Chairman …………………………………………Robin Daley

Treasurer …………………………………………Silvio Marinelli

STATEMENT BY MEMBERS OF THE COMMITTEE


Dated this 17th day of October 2011


This page intentionally left blank


Cranbourne Turf Club IncGrant Street, Cranbourne 3977

Tel: (03) 5996 1300 Fax: (03) 5996 4972Email: [email protected]

www.cranbourneturfclub.com.auABN: 72 001 641 203

cranbourne turf club annual report - 2010 - 11

Documents

racing season

cranbourne racing centre

thoroughbred racing

auditors report

place cranbourne

cranbourne racecourse

current night racing

outstanding year