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CONTENTS 01 Corporate Information 3
02 Director’s Report 11
03 Auditor’s Independence Declaration 14
04 Independent Auditor’s Report to the Members of Sanctuary Lakes Club Ltd 14
05 Declaration by Directors 16
06 Statement of comprehensive income for the financial year ended 30 June 2019 17
07 Statement of financial position as at 30 June 2019 18
08 Statement of Changes in Member’s Equity for the financial year ended 30 June 2019 19
09 Statement of cash flows for the financial year ended 30 June 2019 20
10 Notes to and forming part of the accounts for the financial year ended 30 June 2019 21
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01 CORPORATE INFORMATION
Directors Ruy Franco (Appointed 27 February 2017)
Dale Roseburgh (Appointed 24 November 2015) Brandon Dodds (Appointed 23 November 2016) Anthony Flynn (Appointed 23 November 2016)
Secretary Andrew Metcalfe Registered Office 70 Greg Norman Drive
Sanctuary Lakes VIC 3030 Main Business Address 70 Greg Norman Drive
Sanctuary Lakes VIC 3030
Auditors Frederik Eksteen Collins & Co 127 Paisley Street Footscray VIC 3011
Key Personnel Chief Executive Officer Adam Weeks Chief Financial Officer Ian Crews Administration Coordinator Kacey Dempsey
Hospitality Operations Sanctuary Lakes Function Centre Pty Ltd Director: Robert Merola & Nick Puopolo
Course Superintendent Mark Findlay Golf Operations Matthew Rogers
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Chairman’s Report
It gives me great pleasure to present my Chairman’s
Report on behalf of the board and management team
at Sanctuary Lakes Golf Club. The team had an
enormous year and worked through challenges new
and existing to continue strong positive momentum
across a wide range of aspects at the club.
A significant focus for the board and management
team has been to deliver the longer-term plan. This
commitment to deliver a strategic plan is to ensure
that decisions align where the club wants to be in the
future.
This planning has centred around a vision of making
Sanctuary Lakes Golf Club a premier golfing
experience that members are proud of. The main
aspects include:
● Our course and golfing experience
● Membership value and offerings
● Driving range and Academy income
● Retail offering and income
Course and Golfing Experience
At the heart of our golfing experience is the course,
and our decision to insource this is delivering results.
One of the most significant cost areas in previous
years has been water. A broad program of work has
been running throughout the year on rectifying our
irrigation. This has enabled the team to water where
and how it is needed and remove waste from the
system. New meters on water egress points allowed
the team to identify and resolve a leak in the 6th dam
our main water storage dam.
Additionally, we have undertaken works around the
3rd and 4th hole by extending our "peak" water
catchment and on the 8th hole. In total, we have
added 7 Megalitres of storage, which will generate a
net water benefit of 15 Megalitres each year.
All of these savings can be directed back into positive
areas of course management, increasing our curating
staff numbers to allow us to maintain more
consistent playing services all year round.
Course Architect
I am pleased to welcome Bob Harrison back to
Sanctuary Lakes as our consulting architect. Bob is
one of Australia's leading golf architects, and having
him again creates a strong team in Mark, Alex, and
Bob to deliver an excellent course. Through Bob, we
will be putting in place our course Strategic Master
Plan so all members can see what the long term
plans for the course are.
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Membership Our ongoing focus on membership continued with
work on our induction and renewals process to
ensure that we are growing membership numbers.
For the second year in a row, we have reduced
significantly the number of members that leave
during our renewals process. This number in 2019
was almost half the number in 2018. In 2017 we had
137 members resign, in 2018 96, and only 56 in 2019.
Financial Performance
Our financial performance continues to improve on
the back on improved cost management,
membership renewals, and growth initiatives. Our
result in the 2019 Financial Year saw us post a loss of
$140,061. This result was $218,452 better than the
previous year's result of -$358,513. While this shows
we are moving in the right direction, it also highlights
that we have some areas to continue to improve on.
Management
The team embarked on a significant change to our
management structure. Adam Weeks, our new CEO,
has quickly taken to his role delivering a range of
initiatives aimed at improving communication,
income generation, and cost management. With Ian
in a CFO role, we can tackle some more extensive
finance-related items to support future initiatives.
Development
One of the future initiatives is our development
aspirations. We have now run the first cycle for this,
talking to a potential tenant; the resort services.
While this has not resulted in a tenant for
development, it has been valuable to inform and
shape what the club believes will be the right
direction. Ensuring we have the correct development
plan is crucial, and while this will undoubtedly take
longer than initially anticipated, it's vital that we don't
panic into a decision. The Board is pleased to secure
the services of JLL to assist in the next phase of the
project.
Acknowledgements
The Board would like to thank our sponsors for their
ongoing support and our gratitude to all sponsors of
the club.
I want to thank my fellow Directors Anthony Flynn,
Dale Roseburgh, and Brandon Dodds, for the tireless
work that they put into their positions as volunteers,
and Alex Franklin, our Club Captain. Similarly, to all
the people that volunteer on committees, and around
the course, we sincerely appreciate the work you put
into helping make this a great club.
On behalf of all members, I would like to thank the
wonderful staff that are truly passionate about
providing a leading experience for all members. We
have a great leadership team across the club now,
including Mark Findlay, Matt Rogers, and Ian Crews.
Ruy Franco Chairman
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CEO Report
Having now occupied the role since late August I
believe the organisation has undertaken a number of
positive changes to not only improve its financial
position but also the value proposition to both
members and the public.
This process involved executing a significant
restructure process which meant the club is now able
to strategically align to best work practices as a
recreational sports entity. The appointment of a
marketing expert and re-establishing responsibilities
back in Golf Operations now headed by Matt Rogers
means the focus aims firmly at member acquisition
and driving income performance.
The course operations headed by Mark Findlay
continues to provide an agile in-house resource to
the club. His team do a diligent job of accessing the
challenging nature of course curating in Victoria to
provide the best product possible to our members
and guests. This operation in 2019 saw a major
expansion of our dams around the course to better
capture this valuable resource, along with adding
safety measures by way of increase the boundary
height of the range area to protect both the public
and members alike.
For the year ahead a thorough exploration into
driving income streams both existing and new to the
organisation will be a major focus. The range and
teaching area, pro shop, member services and
member acquisition processes are all significant
areas of opportunity.
Conversely, I am firmly of the opinion that broader
levels of communication are imperative to our
organisation moving forward, along with updating
many of our policies and procedures to form good
governance in conjunction Victorian Institute of Sport
and Golf Australia. Finally reconfirming the club’s
culture and identity is a component I will look to the
membership to help shape as we embark on the next
evolution of Sanctuary Lakes Golf Club.
Thank you to each and every member of our
organisation for making me feel welcome
Adam Weeks Chief Executive Officer
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Club Captain’s Report
Although challenging, upon reflection 2019 has been
a year of consolidation that has set ourselves up for a
successful future.
I am very proud of being able to connect with and get
our original course architect Bob Harrison back at our
club. Bob visited us several times during the year to
provide us with the expert guidance we require to
ensure we improve and remain not only the best golf
course in the West of Melbourne, but in the top 75
courses in the Country. Bob will continue to be
involved as our consulting architect in 2020 and
beyond, and I look forward to be able to defer to a
world class architect in all decisions that impact upon
our course design and playability from the shape of
new mounds, to the mowing lines Mark’s team take,
to the types of vegetation we plant, we keep and what
we remove. Having Bob back involved will ensure our
course continues to improve and plays the way it was
intended and that any changes are not at the whim of
Committee Members.
It was also fantastic to be able to connect with the
original chief engineer of the Sanctuary Lakes
development and current member David Hunter to
pick his brain and assist Mark Findlay with many of
his irrigation questions. Access to this level of
intellectual property is invaluable and will ensure our
goal of making Sanctuary Lakes an exceptional club is
achieved.
We learned a lot about our vulnerabilities over the
dry stretch we experienced early this year and have
already implemented actions to ensure we don’t
suffer from the same exposure to disease in our
greens and hydrophobic conditions in our fairways
moving forward.
To assist in achieving these goals we moved our Club
Championships forward by about 5 weeks to allow us
to renovate our greens and verti-drain our fairways at
an optimum time of the year, when the temperatures
are warm and growing conditions just right.
Conducting an aggressive renovation regime now will
set us up for better and healthier course conditions
over our most challenging months in Summer. Mark
has now experienced our course in every season and
has a better understanding of what needs to be done
at key moments of the year to ensure our course
plays its best.
From an event standpoint, 2019 was very successful.
We enhanced our national and international profile
by being asked to host the final qualifying for the
Women’s Victorian Open Championship, a US LPGA
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Tour Event. It is a testament to the strength of our
course design that although we struggled with the
condition of our greens during this time, we were
again selected to host the final qualifying in February
2020.
We also saw two of our most popular and unique
club events the Greg Norman Australia Day Cup and
Anzac Day trophy successfully conducted and well
supported by our members. It is great to see how
these 2 events continue to grow each year and
contribute to the fabric of our club.
A big congratulations to all our Board event winners
over the year. A special thank you to all the members
that competed in our largest ever Club
Championships with over 190 entrants representing
every demographic section of our club. The
championship finale culminated in an exciting sudden
death playoff that took 4 holes to see Imran Muftarov
crowned as the Open Men’s Champion over Daniel
Adem.
It was particularly exciting to see several Junior
winners over some of the major Championship
categories including 14 year old Joanne Tey winning
the Open Women’s event, and Ethan Di Battista win
the C Grade Men’s as well as the Captain’s Trophy.
Jake Findlay also successfully defended his Junior
Championship. Separately Taegan Dodds was
selected in the Under 12s Victorian Team. These great
results don’t happen by accident, and are a testament
to our strong junior golf program and tireless efforts
of Byron Dodds and our Junior Committee who put in
countless hours into developing the future of our
club.
If the Championships are anything to go by, the
2019/2020 golfing season promises to be another
exciting year for all of our Pennant players who
represent our club so well. We look forward to
supporting you all as you compete against
Melbourne’s best in Victorian Pennant competitions.
On the subject of volunteers, we are a better club for
the members who contribute their time across all our
various committees who organise our golf and non-
golf events. I would like to take this opportunity to
say thank you to all our volunteers.
Lastly, from a personal standpoint November 2019
marks the completion of my first two year stint as
Club Captain. I’d be lying if I said it hasn’t been a
challenge and my golf game has certainly regressed
in this time. However, I remain committed and see
the potential of our club. I’d like to thank the support
I’ve received through the year from the majority of
members, including our Vice Captain Shaun Smith, as
well as fellow members of our M&G Committee.
I’d also like to specifically recognise the work of Dale
Roseburgh and Jason Box around Club Championship
time. I do appreciate this support especially when
dealing with a number of challenging issues that a
Club Captain faces at various times. After careful
consideration I would like to keep representing you
as your Captain for a further two years. I believe we
are on the right path and through the hard work and
vision of Ruy Franco and the Board, supported by
Mark Findlay, our Club’s Administration and Golf
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Operations teams we will continue to improve and
most importantly provide all our members with a
premium golfing and club experience that will see us
remain the best golf club in the West.
See you around the Club.
Alex Franklin
Sanctuary Lakes Club Captain
Honorary Mentions & Acknowledgements The Board wishes to acknowledge and thank the
following individuals who sat on the various
committees throughout this year.
Match and Green Committee
Alex Franklin, Shaun Smith, Dale Roseburgh, Janice
McCormack, Jason Box, Mark Findlay, Trevor Hillier
Membership Committee
Ian Crews, Jeanne Burbidge, Mark Winter, Bernard
Malcolm, Kacey Dempsey and Michael McDade
Ladies Committee
Jeanne Burbidge, Janice McCormack, Kaoru Curmi,
Kacey Dempsey and Ian Crews
House and Social Committee
The Board would also like to thank all those
volunteers and other individuals who have
contributed to the Club over the year.
Junior Committee
Helen Frost, Byron Dodds, Ian Crews, Suzi Wesley and
Anthony Di Battista
Ground Crew
Mark Findlay and his ground staff; Darren Russell,
Heath Grundy, Ben Rakuz, Scott Hayes, Kortez
HaWes-King, and Lucas Markham
The Vets
Thank you for all your effort during the year,
including filling divots, repairing, picking up balls
along the driving range and all other bits and pieces
you volunteer for and support
Barbara Lawn, Ian Crews and Kacey Dempsey
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Major Event Winners 2018-2019
Club Championships Gross Winner
Men’s Club Champion 2018: Mark Grimsditch
A Grade Champion 2018: Steele Denman
B Grade Champion 2018: Adam Mallabone
C Grade Champion 2018: Luke Evans
Ladies Club Champion 2018: Kiandra Hughes
Junior Club Champion 2018: Jake Findlay
Foursomes Championships 2018
Mens Foursomes Champions 2018: Dion Tamatea &
Francois Butterworth
Ladies Foursomes Champions 2018: Suzette Ma &
Sammy Yang
Mixed Foursomes Champions 2018: Kerry Hansford
& Zach McIsaac
Mens Foursomes Nett Champions 2018: Laurie Grioli
& Alex Grioli
Mixed Nett 2018: Diane Hills & Michael Lawler
4 BBB Matchplay Championship
2018 Men 4BBB Matchplay: Marcus Bertino & Matt
Carr
2018 Ladies 4BBB Matchplay: Sally Schott & Kerry
Hansford
Matchplay Champion
A Grade Matchplay Winner 2018: Marcin Kaszkiel
B Grade Matchplay Winner 2018: Brett Clements
C Grade Matchplay Winner 2018: Michael Sarpi
Ladies Matchplay Winner 2018: Choy Hong
Hole in One
Brandon Dodds 2nd Hole 25th August 2018
Craig Parkinson 6th Hole 5th November 2018
Kayden Ling 6th Hole 26th December 2018
Alan Paterson 11th Hole 21st January 2019
Sean Jenkins 11th Hole 28th January 2019
Shane Hooton 11th Hole 14th April 2019
Penny Heron 2nd Hole 12th May 2019
David Van Ryn 6th Hole 18th May 2019
Paul Didham 17th Hole 9th June 2019
Angelo Puopolo 6th Hole 15th June 2019
Monthly Medal Winners
2018
July: Luke Parker
August: Imran Muftarov
September: Gregory Den Mulder
October: Sam Vailmuthu
November: Adam Wilson
December: Eugene Korbut
2019
January: David Galligan
February: Alan Gesmundo
March: Daniel Saykan
April: Shane Freeman
May: Jonathan Kaklikos
June: Michael Lawler
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02 DIRECTORS’ REPORT The Directors of Sanctuary Lakes Club Ltd submit
herewith their report together with the accounts of the
Company for the year ended 30 June 2019. The
following persons were Directors of the Company
during the financial year and up to the date of this
report:
Ruy Franco (Chair) Elected 27 February 2017
Dale Roseburgh Elected 24 November 2015
Brandon Dodds Elected 23 November 2016
Anthony Flynn
Craig Kennedy
Elected 23 November 2016
Elected 14 August 2014;
resigned 28 November 2018
PRINCIPAL ACTIVITIES
The company's principal activit ies have been
the operation of a golf club.
RESULTS
Net comprehensive loss of the company for
the f inancial year was $140,061 compared
with a net comprehensive loss of $358,513
for the 2018 f inancial year.
FINANCIAL PERFORMANCE
The f inancial performance in 2019 showed
remarkable improvement over 2018’s
results. the company undertook a number
of projects throughout the year to continue
to improve its cost base in the course. staff
costs and addit ional course costs due to
adverse course condit ions led to a loss
where a posit ive result was expected.
The board’s primary objective is for the
company to del iver an operating surplus
and a strong f inancial posit ion as a
foundation for future growth.
STATE OF AFFAIRS
during the f inancial year, there was no
other signif icant change in the company's
state of affairs.
LIKELY DEVELOPMENTS
In the opinion of the directors, disclosure of
information regarding l ikely developments
in the company's operations and the
expected results of its operations in future
f inancial years is l ikely to result in
unreasonable commercial prejudice to the
company. accordingly, this information has
not been disclosed in this report.
SUBSEQUENT EVENTS
There were no events of material nature to
report.
DIRECTORS' INTERESTS AND BENEFITS
No director of the company has received or
become entit led to receive any benefit
(because of a contract made by the
company or a related body corporate with
the director, a f irm of which the director is
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a member or a company in which the
director has a substantial f inancial interest)
other than:
i . a benefit included in the aggregate
amount of remuneration received or due
and receivable by directors; or
i i . amounts paid or payable as disclosed in
the notes to the accounts.
DIVIDENDS
pursuant to clause 5.1 of the company's
constitution, the company cannot pay or
declare dividends.
DIRECTORS' MEETINGS
The number of directors' meetings held and
attended by each director of the company
during the f inancial period up to and
including the date of this report were:
Director Number of Meetings Attended
Number of Meetings held whilst in office
Ruy Franco 5 5
Dale Roseburgh
5 5
Anthony Flynn 4 5
Brandon Dodds 5 5
Craig Kennedy 2 3
OTHER MATTERS
There are no unissued shares under option
as at the date of this report.
The company has not, during or since the
end of the f inancial year, in respect of any
person who is or has been an off icer or
auditor of the company:
i . indemnified them or made any relevant
agreement for indemnifying them against a
l iabi l i ty including costs and expenses in
successful ly defending legal proceedings; or
i i . paid or agreed to pay a premium for
them in respect of a contract insuring
against a l iabi l i ty for the costs or expenses
to defend legal proceedings.
ENVIRONMENTAL ISSUES
The company's operations are bel ieved to
be in accordance with al l s ignif icant
environmental regulations under a law of
the commonwealth or of a state or territory.
Signed in accordance with a resolution of
the directors made pursuant to the
corporations act. , on behalf of the directors.
Ruy Franco, Anthony Flynn
Chairman , Director
4 NOVEMBER 2019
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03 AUDITOR’S INDEPENDENCE DECLARATION
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04 INDEPENDENT AUDITORS REPORT TO THE MEMBERS OF SANCTUARY LAKES CLUB LTD
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05 DECLARATION BY DIRECTORS (i) As detailed in Note 1 to the financial report the
Company is not a reporting entity because in
the Directors' opinion, there is unlikely to exist
users who are unable to command the
preparation of reports tailored so as to satisfy
specifically all of their information needs. This
financial report is therefore a "Special Purpose
Financial Report" that has been prepared
solely for the Directors and members of the
Company.
(ii) The Directors of the Company declare that.-
(iii) The Statement of Comprehensive Income is
drawn up so as to present fairly the results of-
the Company for the financial year ended 30
June 2019;
(iv) The Statement of Financial Position is drawn
up so as to present fairly the position of the
Company for the financial year ended 30 June
2019;
(v) The Statement of Changes in Equity is drawn
up so as to present fairly the position of the
Company for the financial year ended 30 June
2019;
(vi) The Statement of Cash Flows is drawn up so as
to present fairly the results of the Company for
the financial year ended 30 June 2019;
(vii) As indicated in Note 1, at the date of this
statement there are reasonable grounds to
believe that the Company will be able to pay its
debts as and when they become due and
payable; and
(viii) The accompanying accounts have
been made out in accordance with applicable
accounting standards and other mandatory
professional reporting requirement in
Australia except as set out in the Note 1 to the
accounts.
On behalf of the Board
Ruy Franco Chairman 4 November 2019
Anthony Flynn Director 4 November 2019
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06 STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
Note 2019 2018
$ $
Subscription Fees 2 1,262,454 1,388,745 Trading Revenue 2 1,059,576 1,024,577
Other Revenue from Ordinary Activities 2 496,744 444,236
2,818,774 2,857,558 Employment Costs (1,035,528) (687,660)
Cost of Sales
(394,522)
(428,036)
Other Expenses from Ordinary Activities (1,521,352) (2,093,914)
(2,951,402) (3,209,610)
Operating Profit/(Loss) for the year (132,628) (352,052)
Non-operating items Profit from the Sale of Assets 3 - -
Interest on finance facilities (7,433) (6,461) (140,061) (358,513)
Total Comprehensive Income/(Loss) for the year (140,061) (358,513)
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07 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019
Note 2019
$ 2018
$ Current Assets Cash & Cash Equivalents 4 102,858 62,732 Trade & Other Receivables
5 210,886 471,240
Inventory 6 109,210 (-
87,301 (-
Total Current Assets 422,954 621,273 Non-Current Assets Land and Buildings 7 7,913,024 7,928,302 Plant & Equipment 7 489,270 356,971
Loan to Sanctuary Lakes Resort Services Ltd - 300,000
Total Non-Current Assets 8,402,294 8,585,273 Total Assets
8,825,248
9,206,546
Current Liabilities Trade & Other Payables 8 695,744 934,579
Provisions 9 46,427 35,176 Financial Liabilities 10 18,046 16,622
Total Current Liabilities 760,217 986,377 Non-Current Liabilities Provisions 9 13,200 12,000 Financial Liabilities 10 43,628 59,905 Total Non-Current Liabilities 56,828 71,905 Total Liabilities
817,045
1,058,282
Net Assets
8,008,203
8,148,264
Members' Equity
Members' Surplus 8,008,203 8,148,264 8,148,264
Total Members' Equity 8,008,203 8,148,264
8,148,264 8,148,264
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08 STATEMENT OF CHANGES IN MEMBER’S EQUITY FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
Members' Surplus
$
Balance at 30 June 2017 8,506,777
Profit/ (Loss) attributable to Members (358,513)
Balance at 30 June 2018 8,148,264
Profit/ (Loss) attributable to Members 4,937,764
(140,061) Balance at 30 June 2019 8,008,203
The Statement of Changes in Members’ Equity should be read in conjunction with the notes to and forming part of the accounts
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09 STATEMENT OF CASH FLOWS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
Notes 2019 2018
Cash Flow from Operating Activities $ $ Receipts from customers 2,879,127 2,840,657 Payments to suppliers and employees (3,115,402) (3,168,821) Interest Paid (7,432) (6,461) Net Cash from Operating Activities 11(i) (243,707) (334,625) Cash Flows from Investing Activities Proceeds on Sale of Land - - Payments for Plant and Equipment (201,314) (200,930) Net Cash (used in) Investing Activities (201,314) (200,930) Cash Flows from Financing Activities Repayment of HP Liability (14,853) (19,122) Proceeds from HP Liability - 83,754 Proceeds/ (Payment) from SLRS Loan 500,000 300,000 Repayment of SLRS Loan - - Net Cash (used in) Financing Activities 485,147 364,632 Net Increase/(Decrease) in Cash 40,126 (170,923) Cash Held at the Beginning of the Financial Year 62,732 233,655 Cash Held at the End of the Financial Year 11(ii) 102,858 62,732
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10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
1 SUMMARY OF ACCOUNTING POLICIES Financial Reporting Framework
This financial report is a special purpose financial
report prepared for use by the Directors and Members
of the Company. The Directors have determined that
the Company is not a reporting entity, and therefore
there is no requirement to apply all applicable
accounting standards or other mandatory
professional reporting requirements in the-
preparation and presentation of this report. The
Company is limited by guarantee, incorporated and
domiciled in Australia.
The report has been prepared in accordance with the
requirements of the Corporations Act 2001, and the
following applicable Australian Accounting Standards
and Accounting Interpretations:
AASB 107: Cash Flow Statements;
AASB 108: Accounting Policies, Changes in Accounting
Estimates and Errors;
AASB 110: Events after the Balance Sheet Date;
AASB 117: Leases;
AASB 1031: Materiality;
AASB 1048: Interpretation and Applicable Standards
No other Accounting Standards, Accounting
Interpretations or other authoritative
pronouncements of the Australian Accounting
Standards Board have been applied.
Reporting Basis and Conventions
The report has been prepared on an accruals basis
and is based on historical costs modified by the
revaluation of selected non-current assets, financial
assets and financial liabilities for which the fair value
basis of accounting has been applied.
The following is a summary of the material policies
adopted by the Company in the preparation of the
financial report. Taxation Pursuant to a review of the
affairs of the Company by the Australian Taxation
Office "ATO", the income tax exempt status of the
Company was withdrawn on the basis that the ATO
believed the Company's principal activity had not been
the promotion of sport.
The Directors have since re-structured the business
affairs of the Company, effective from 1 July 2010, to
ensure the principal activity remains the promotion of
sport, thereby facilitating the tax-exempt status of the
Company.
Recognition
Financial instruments are initially measured at cost on
trade date, which includes transaction costs, when the
related contractual rights or obligations exist.
Subsequent to initial recognition these instruments
are measured as set out below
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10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
1 SUMMARY OF ACCOUNTING POLICIES (CONT'D)
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired
principally for the purpose of settling in the short term
or if so designated by management and within the
requirements of AASB 139: Recognition and
Measurement of Financial Instruments. Derivatives
are also categorised as held for trading unless they are
designated as hedges. Realised and unrealised gains
and losses arising from changes in the fair value of
these assets are included in the income statement in
the period in which they arise.
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.
FINANCIAL INSTRUMENTS
Held to maturity investments
These investments have fixed maturities, and it is the
Company's intention to hold these investments to
maturity. Any held to maturity investments are stated
at amortised cost using the effective interest rate
method.
Available for sale financial assets
Available for sale financial assets include any financial
assets not included in the above categories. Available
for sale financial assets are reflected at fair value.
Unrealised gains and losses arising from changes in
fair value are taken directly to Member's equity.
Financial liabilities
Non-derivative financial liabilities are recognised at
amortised cost, comprising original debt less principal
payments using the effective interest rate method.
Fair Value
The Company measures some of its assets and
liabilities at fair value on either a recurring or non-
recurring basis, depending on the requirements of the
applicable Accounting Standard.
Fair value is the price the Company would receive to
sell an asset or would have to pay to transfer a liability
in an orderly (i.e. unforced) transaction between
independent, knowledgeable and willing market
participants at the measurement date.
As fair value is a market-based measure, the closest
equivalent observable market pricing information is
used to determine fair value. Adjustments to market
values may be made having regard to the
characteristics of the specific asset or liability. The fair
values of assets and liabilities that are not traded in an
active market are determined using one or more
valuation techniques. These valuation techniques
maximise, to the extent possible, the use of
observable market data
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10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
1 SUMMARY OF ACCOUNTING POLICIES (CONT'D)
To the extent possible, market information is
extracted from either the principal market for the
asset or liability (i.e. the market with the greatest
volume and level of activity for the asset or liability) or,
in the absence of such a market, the most
advantageous market available to the entity at the end
of the reporting period (i.e. the market that maximises
the receipts from the sale of the asset or minimises the
payments made to transfer the liability, after taking
into account transaction costs).
For non-financial assets, the fair value measurement
also takes into account a market participant's ability to
use the asset in its highest and best use or to sell it to
another market participant that would use the asset in
its highest and best use.
The fair value of liabilities may be valued, where there
is no observable market price in relation to the
transfer of such financial instruments, by reference to
observable market information where such
instruments are held as assets. Where this information
is not available, other valuation techniques are
adopted and, where significant, are detailed in the
respective note to the financial statement.
Impairment
At each reporting date, the Company 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 determine
whether an impairment has arisen. Impairment losses
are recognised in the Statement of Comprehensive
Income.
Impairment of Assets
At each reporting date, the Company reviews the
carrying values of its tangible and intangible assets to
determine whether there is any indication that those
assets have been impaired. If such an indication exists,
the recoverable amount of the asset, being the higher
of the asset's fair value less costs to sell and value in
use, is compared to the asset's carrying value. Any
excess of the asset's carrying value over its
recoverable amount is expensed to the income
statement.
Impairment testing is performed annually for
intangible assets with indefinite lives.
Where it is not possible to estimate the recoverable
amount of an individual asset, the Company
estimates the recoverable amount of the cash
generating unit to which the asset belongs.
24
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand,
deposits held at call with banks, other short term
highly liquid investments with original maturities of
three months or less and bank overdrafts. Bank
overdrafts are shown within short term borrowings in
current liabilities on the balance sheet
Revenue
Revenue from the sale of goods and services is
recognised upon the delivery of goods and services to
customers.
Interest revenue is recognised on a proportional basis
taking into account the interest rates applicable to the
financial assets.
Goods and Services Tax (GST)
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 Tax
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. Receivables and payables in
the balance sheet are shown inclusive of GST. Cash
flows are presented in the cash flow statement on a
gross basis, except for the GST component of investing
and financial activities, which are disclosed as
operating cash flows.
Comparative Figures
When required by Accounting Standards, comparative
figures have been adjusted to conform to changes in
presentation for the current financial year.
Property, Plant and Equipment
Each class of property, plant and equipment is carried
at cost or fair value less, where applicable any
accumulated depreciation.
Depreciation
All assets, excluding freehold land, are depreciated on
a reducing balance basis over their useful lives to the
Company, rates generally varying between 20% and
40%.
Inventories
Inventories are measured at the lower of cost and net
realisable value. Costs are assigned on an average cost
basis and include direct materials, direct labour and an
appropriate proportion of variable and fixed overhead
expenses.
Critical Estimates and Judgments
The Directors evaluate estimates and judgments using
historical knowledge and best available current
information.
25
10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
2. Revenues
Operating Revenue:
2019 $
2018 $
Subscription Fees 1,249,186
1,352,680
Member Joining Fees 13,268 36,065 Golf Operations 852,250 869,169 Group Golf 207,326 155,408 Rental Income 400,176 389,227 Interest - - Other 96,568 55,009
Total Operating Revenue 2,818,774 2,857,558
3. Non-Operating Revenue Revenue from Sale of Land
Total Non-Operating Revenue - -
4.
CASH & CASH EQUIVALENTS
Cash At Bank and On Hand 102,858 62,732
102,858 62,732 5.
TRADE & OTHER RECEIVABLES
Current
Trade Debtors 6,564 98,548 Provision for Doubtful Debts (14,000) (14,000) Sundry Debtors 16,775
3,822
Accrued Income 66,965 21,407
Prepaid Expenses 34,582 61,463 Sanctuary Lakes Resort Services Ltd Loan 100,000 300,000 210,886 471,240 6.
INVENTORY
Current Stock - at cost 109,210 87,301
26
10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
2019 $
2018 $
7. PROPERTY, PLANT & EQUIPMENT
Golf Course & Clubhouse at valuation 7,177,885 7,177,885 Buildings & Improvements 1,054,787 1,048,709 Accumulated Depreciation (319,648) (298,292)
7,913,024 7,928,302
Plant and Equipment – cost 1,167,467 983,266 Accumulated Depreciation (702,098)
(648,733)
465,369 334,533 Office Equipment – cost 180,723 170,520
Accumulated Depreciation (156,822) (148,082)
23,901 22,438
Total Property Plant and Equipment - Book Value
8,402,294
8,285,273
8.
TRADE & OTHER PAYABLES
Current
Trade Creditors 60,268 263,157 Accruals 54,562 99,665 Other Payables 140,680 16,246 Prepaid Subscriptions 440,234 555,511
695,744 934,579
9. PROVISIONS Current
Provision for Annual Leave
46,427
35,176
Provision for Long Service Leave - - 46,427 35,176 Non-Current
Provision for Long Service Leave
13,200
12,000
13,200 12,000
27
10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
2019
$ 2018
$ 10. FINANCIAL LIABILITIES Current HP Liabilities 18,046 16,622
18,046 16,622 Non-Current
HP Liabilities
43,628
59,905
43,628 59,905 11. NOTES TO THE STATEMENT OF CASH FLOWS Reconciliation of Net Cash from Operating Activities to Profit after Income Tax i) Operating profit/(loss) after income tax
Non-Cash Items:
(140,061)
(358,513)
Depreciation 84,295 93,028
Profit from the Sale of Assets -
-
Doubtful Debts - (22,293)
1,050 (22,293)
Change in operating assets and liabilities: Receivables (net of impairment)
60,354
(16,901)
Inventories (21,910) (18,906) Payables (238,836) (48,236)
Provisions 12,451 13,853 Net Cash from Operating Activities (243,707) (334,625) ii)
Reconciliation of Cash
Cash includes cash on hand, short term deposits, net of bank overdrafts and is reconciled to the statement of financial position as follows:
net of bank overdrafts and is reconciled to the
Cash 102,858 62,732
102,858 62,732
28
10 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2019
2019 $
2018 $
12. AUDITOR'S REMUNERATION
Audit
15,600 13,350
15,600 13,350 13. HIRE PURCHASE COMMITMENTS
Gross Hire Purchase Payments< 1 year 21,215 20,743 7,418 Future Finance Charges< 1 year
(3,170) (4,121)
18,045 16,622 Gross Hire Purchase Payments 1- 5 years
46,996
66,443
Future Finance Charges 1- 5 years
(3,368)
(6,538)
43,628 59,905
14. RELATED PARTIES
The Directors of the Company are named in the
Directors' Report.
During the year, the Company did not have any
transactions with related entities.
15. SHARE CAPITAL
The Company is limited by guarantee (i.e. it has no
share capital). Each Member does not have a right to
vote at any general meeting until Completion Date (as
defined in the Constitution). On winding up of the
Company, any surplus assets (after all debts are
settled) will be distributed to a company with similar
objects and similar constitutional restrictions.
29