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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