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Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360 Financial Statements For the Year Ended 30 June 2018
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
Financial Statements
For the Year Ended 30 June 2018
Contents
Page
President’s Report
Treasurer’s Report
Secretary Manager’s Report
Lady President’s Report
Bowls Coordinator’s Report
Directors' Report
i
ii
iii
iv
v
1
Auditor's Independence Declaration
Financial Report 4
Statement of Profit or Loss and Other Comprehensive Income 5
Balance Sheet 6
Statement of Changes in Equity 7
Statement of Cash Flows 8
Notes to the Financial Statements 9
Directors' Declaration 25
Independent Auditor's Report 26
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
President’s Report
30 June 2018
i
I am proud to present my first report as President to the AGM for the year ended 30th June 2018.
There have been a few notable things that have happened in the club the biggest one being the closure of the club for almost 4 weeks due to electrical problems where we had to employ Star Electrical to renew our electrical board and make it safe for people to enter the club.
Another major edition to the club is our new kitchen staff who are doing a fantastic job for the club. The members and guests that have eaten there since Jack and his staff have taken over have returned on a regular basis so that all points to great food and magnificent service.
The next thing the club had to do was to hire a new greenkeeper and it is with great pleasure I can say that Sandra hired Rick Thompson and he has slotted in to the job fantastically. Our greens are as good as any in the district.
The greatest thing that I can report on that occurred during my first year as President is that our #2 Pennant side won the District Pennant and went to the state playoffs at Mt Lewis Bowling Club and made the semi‐final. What a fantastic achievement, nobody in their wildest dreams would have expected our team to do so well. I honestly can say all our bowlers have made me a very proud man with the way they have performed on and off the green this year especially during some hard times. Our #4 Pennant team struggled and our #7 Pennant team only just missed out on the playoffs at the last hurdle but all our bowlers handled themselves in a very positive manner showing just what sportsmanship is all about at Fairy Meadow Bowling Club.
By the time you read this report the new bar and gaming area building improvements should have been started by the builders and we hope to have them finished by the end of November. Please be patient and give them and our staff your full cooperation at this time in our club.
I would like to thank all the staff bar, green keeping and administration for your support to myself and to Sandra in a tough year for the club.
Special thanks to our generous sponsors for your financial support throughout the year and look forward to keeping our relationship going.
A huge thankyou to our hard‐working board of management and our Secretary Manager Sandra for the continued support that I have received from you all in a difficult year. We have had some tough times and decisions to make but with the new bar and other facilities we are looking to turn the place around.
I would also like to thank all our volunteers who generously give their time to help support our great club.
Most importantly I would like to thank the members and the visitors to our club for without your support we would not be able to call ourselves the friendly club.
Sadly, my last point is to convey my deepest sympathy to all the families of those members who have passed away during the year.
Gordon Lester President
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
Treasurer’s Report
30 June 2018
ii
I present to the members of Fairy Meadow Bowls & Recreation Club the 2018 Treasurer’s Report.
The Financial Statements have been subject to an independent audit by Daley & Co. Chartered Accountants, who have given and unqualified audit opinion. In this regard, I would like to thank Michael Mundt, Stephen Milgate and their associated staff for all their assistance throughout the year.
Over the last year, the club has experienced challenging and difficult trading conditions. The issues surrounding our dining room/catering and the closure of the club for (approx.) a month have not helped our trading position.
The Statement of Profit and loss for the year ended 30th June 2018 has recorded a net profit of $159,400. However, once “one‐off” items such as the profit on the sale of the investment property ($185,287) and the gain on the revaluation of the second investment property ($179,400) are excluded, the club incurred a loss of $205,287.
The above loss was severely impacted by the following items:‐
i. Bar sales decreasing by (approx.) $107,000 (14% decrease on the 2017 year).
ii. Gaming revenue by (approx.) $87,000 (22% decrease on the 2017 year).
As expected, in light of the above, the club’s net cash position has also decreased. The Club’s net cash position from operating activities was a negative (approx.) $113,000. A further (approx.) $124,000 was invested into asset purchases and the like.
As widely known, the club has divested itself of one of its investment properties and the funds from this sale are to be used in carrying out much needed improvements to the club’s interior. It is hoped that these improvements will see an increase in patronage and ultimately, an increase in profitability.
Finally, I would like to thank those loyal members who have continued to support the club over the last year. It is only with your loyalty and support that we can move positively forward.
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
Secretary Manager’s Report
30 June 2018
iii
Dear Members
I am glad to have the opportunity for the first time to present my annual report as Secretary Manager for the year ending 30 June 2018.
In the three years that I have been employed as Secretary Manager, there has been great change within the Club, from back of house procedures, staffing, some Club refurbs and even the culture of the Club has changed.
Although there had been an improvement in actual trading profit in the two previous financial years by $50K in 2016 and $68K in 2017, this year we have incurred a great loss due to a number of factors, being the closure of the Club for nearly a month due to electrical problems, change of caterers and the current trying social environment. This year included the sale of one of the Club’s villas and an increase in value of the Club’s other villa, which made the final nett look respectable at $159,400, but we actually had a trading loss of $205,287 (which includes $97,272 of depreciation).
We are about to start Club renovations which are planned to be finished by the end of November. These improvements will include the bar and gaming areas which is a necessity for the survival of the Club. These changes should show improved trading in those areas which are our main income areas and therefore, over time, should improve the financial situation of the Club. As time has shown, without timely upgrades and making improvements to the Club, you get left behind.
Welcome to Ricky Thompson, our newly appointed Head Greenkeeper who has replaced Pat Heffernan whom I would like to thank very much for his never ending hard work over the past 40 years. Unfortunately for Pat, there isn’t any retirement just yet, as we now have him working alongside Ricky and what a fantastic job they are doing.
I would also like to thank the rest of my wonderful team who are the face of our Club which I rely on greatly for their experience, loyalty, professionalism and friendliness.
I would like to say a big thank you to our Bowls Officials and Men and Lady Bowlers for your commitment to our Club over the past year and a big Congratulations to our Mighty No.2 Pennant Team who not only won the Zone flag, but also made it to the semi‐final of the State Playoffs. It was great being part of the support group at the Zone Final and the State Playoffs. Just witnessing the determination and mateship of our No.2’s and to see the support they received from our Members was fantastic. Therefore, a big thanks to our Members for their support and the atmosphere they created for our team.
I would also like to thank the Members for your ongoing commitment to the Club and our Member Volunteers who we rely on so greatly.
In closing, I would like to thank the President, Gordon Lester and the Board of Directors for their tireless commitment over the past year and for all the voluntary work they perform in the Club. I thank them for their support, strength, and vision for the future.
Sandra Pegg Secretary Manager
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
Lady President’s Report
30 June 2018
iv
As the year as your President comes to an end, I would like to thank everyone who has helped with the running of our Ladies Club.
To Secretary, Sandra Lane, VP’s Helen Barlow and Margaret Walton, Treasurer Angela Knowles, Committee Ladies, Selectors and Chairman of Match, Mary Bulman and roster ladies, thank you all.
This year we celebrated our 60th birthday. The weather was miserable, but we had a great day. Thanks to everyone who worked to make it the success it was. We welcomed representatives for District Executive, District Clubs, Grandview, Club Ltd and invited past members.
Our lovely cake was made by Sandra Lane and decorated by Sandra with help from her friend, Helen.
The Biggest Morning Tea was successful again this year, raising $700, thanks to the ladies beautiful cakes and slices etc.
To Patron and Life Member, Val Latter, thank you for your continued generosity and support.
Welcome to our new members, Joy Hurworth and Barbara Johnston.
Sadly this year, we lost two treasured members, Patron and Life Member Netta Laidlaw and Gloria Murray. We also had 5 resignations, Isabella Chambers, Margaret Tougher, Doreen Waddell, Connie Ward and Carol Whelan. These ladies are going to be greatly missed.
To our Greenkeepers, Rick and Pat, thank you. To Club Ltd President, Gordon, Secretary Manager, Sandra and Board Members, thank you for your continued support.
To our playing and non‐playing members, it is lovely having your company and support each week.
Thank you ladies.
Margaret Hayman
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
Bowls Coordinator’s Report
30 June 2018
v
Thanks to all bowlers who played social club championships and other events.
To all the winners of club championships, well done.
Thanks to Bruce Evans for his work over the year.
To the Tournament Committee, Umpires and Greenkeepers, thank you for all your work.
To all Pennant players, well done.
To our No.2’s, job well done.
To Sandra, thanks for your work.
Ian Kenny Bowls Coordinator
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001028 360
Directors' Report
30 June 2018
Your directors present their report on Fairy Meadow Bowling & Recreation Club Limited for the financial year
ended 30 Ju ne 2018.
lnformation on directors
The names of each person who has been a director during the year and to the date of this report are:
Name Position Qualifications Appointed/Resigned
G LesterP O'ConnorF BrindleyF ApolloniM Ryan
J HeffernanA ChristieI KennyE RaccanelloP Ellem
PresidentDirectorDirectorDirectorDirectorVice PresidentTreasurerChairman/PresidentDirectorDirector
RetiredRoad Construction Foreman
Retired Building lnspectorRetired AccountantMarine Transport PilotStore CoordinatorFinance ManagerRetiredRetiredRetired
Appointed 24/9/2017Appointed 24/9/20L1Appointed 2419/20L7Resigned 2419/2OI7Resigned 24/9/2017Resigned 24/9l2Ol7Resigned 24/9l2Ol1Resigned 78/7 /2017
Directors have been in office since the start of the financial year to the date of this report, unless otherwisestated.
Review of operations
The resu lt of the Company was a surplus of $159,400 (2017: S351,9a9)
Principal activities
The principal activities of Fairy Meadow Bowling & Recreation Club Limited during the financial year were tomaintain and conduct a licensed Bowling Club for the accommodation of the members of the Company, topromote the game of Bowls and to encourage social activities between the members of the Company.
No significant changes in the nature of the entity's activity occurred during the financial year.
7
Fairy Meadow Bowling & Recreation Club [imited
ABN:86 001 028 360
Directors'Report
30 June 2018
Short and long term objectives
The Company will continue to promote the sport of bowls (as stated in 'Principal Activities') and encourage
people of all ages to visit the Club premises and enjoy the ambience of our small Club. ln the longer term, the
Company intends to further promote the club throughout the local community, and utilise the proceeds ofsurplus assets for the benefit of members by improving services and amenities.
So as to achieve the above objectives, the Company strategy will include pursuing membership drives using
local media, notification of new facilities using local media and development of forecasting models to ensureprofitability into the future.
Strategy for achievint the objectives
To achieve these objectives, the Company has adopted the following strategies:. implem€nt cost cutting measures to areas that are deemed non-value added; and. member drives to increase the Company's membership base.
Performance measures
The Company assesses its performance in terms of its achievement of strategic and financial objectives withreference to:. the quality ofthe service and facilities provided to members;. the ability to generate strong cash flows from its operating activities;. the trading and overall financial result; and. the stability of the balance sheet with respect to the Company's liquidity and the total levels of debt.
Members guarantee
The Fairy Meadow Bowling & Recreation Club Limited is a Company limited by guarantee. ln the event of, andfor the purpose of winding up of the Company, the amount capable of being called up from each members andany person or association who ceased to be a member in the year prior to the winding up, is limited to S10 formembers, subject to the provisions of the Company's constitution.
At 30.lune 2018 the collective liability of members was 59,460 (2017: $ 9,510)
2.
Fairy Meadow Bowling & Recreation Club Limited
ABN:86 001 028 360
Directors'Report
30 June 2018
Meetings of directors
During the financial year, 13 meetings of directors (including committees of directors) were held. Attendances
by each director durinE the year were as follows:
Directors' lleqtings
Numbaroligible
G Lester
P O'Connor
F Brindley
F Apolloni
M Ryan
J Hefferman
A Christie
lKenny
E Raccanello
P Ellem
13
13
10
10
10
3
3
3
3
I)
t29
9
6
3
3
3
3
Auditor's independence declaration
The lead auditor's independence declaration in accordance with section 307C of th e Corporqtions Act 2001, fo(the year ended 30 June 2018 has been received and can be found on page 4 ofthe financial report.
Sign accorda ce with a resolution ofthe Board of oirectors
G LesterDirector
Dated 21 August 201.8
Wollongong
3
charlered accountants I nteq rated Fi n anc i al So/utlons
Auditor's lndependence Declaration under Section 307C of the Corporations Act 2001to the Directors of Fairy Meadow Bowling & Recreation Club Limited
I declare that, to the best of my knowledge and beliel during the year ended 30 June 2018, there have been:
(i) no contraventions of the auditor independence requirements as set out in the Corporotions Act 2007in relation to the audit; and
(ii) no contraventions ofany applicable code ofprofessional conduct in relation to the audit.
DaleyaCo
,4Da ley o
Chartered Accou nta nts
Pa rtne r
21 August 2018
Wollongong
Uability limited by a scheme approved under professional Standards Legislation
4.
fu/-4Stepfen Miffite
Fairy Meadow Bowling & Recreation Club Limited
ABN: 85 001 028 360
Statement of Profit or Loss and Other Comprehensive lncome
For the Year Ended 30 June 2018
Revenue
Other income
Cost of sales
Employee benefits expense
Clubhouse expense
Member expenses
Depreciation expense
Gaming expense
Competition fees
Property costs
Finance costs
Other operating expenses
Gain on disposal of assets
Gain on revaluation of investment property
Result for the year
Other comprehensive income for the year
Total comprehensive income for the year
Note
2018
s
2017
s
4
4
1,049,s43
228,989
(292,4731
(491,886)
(205,455)
1L29,2801
197,2721
ls7,74Ll
144,2591
(33,761)
(832)
(130,849)
L45,287
L79,400
t,242,596
240,604
\324,r6L\
{493,490)
1228,2821
(127 ,037].
(111,178)
14L,s79l(s5,s18)
(28,031)
(4,782\
l.702,7 44)
170,55r.
21s,000
10
11
The accompanying notes form part of these financial statements
159,400 351,949
5
159,400 35L,949
Fairy Meadow Bowling & Recreation Club Limited
ABN:86 001 028 360
Balance Sheet
As at 30 June 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
lnventories
Other assets
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipmenl
lnvestment property
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
Borrowings
Employee benefits
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
Employee benefits
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Retained earnings
TOTAL EQUITY
Note
2018
s
20L7
$
6
7
8
9
762,2L9
542,L44
29,777
37,566
398,610
t7,37L
3 L,015
35,116
47L,706 482,LL2
10
11
1,2
13
t4
13
t4
685,406
530,000
644,359
900,000
1,316,406 L,544,359
t44,6La
47,278
66,79L
88,234
63,2 95
724,828
258,687 276,357
19,159
7,894
3,746
3,996
27,053 7 ,142
285 740 283,499
1,902,172 1,142,972
L,902,172 L,742,972
_],e028?__!_!2P12_
The accompanying notes form part of these financial statements.
5.
2,188,LL2 2,026,471
Fairy Meadow Bowling & Recreation Club Limited
ABN:86 001028 360
Statement of Changes in Equity
For the Year Ended 30 June 2018
Balance at I luly 2Ol7
Result for the year
Balance at 30 June 2018
Balance at 1 July 2015
Result for the year
Balance at 30 June 2017
RetainedEarnings
s
L,742,972
159,400
L,902,372
L,39L,O23
351,949
t,7 42,972
The accompanying notes form part of these financial statements
7
Fairy Meadow Bowling & Recreation Club Limited
AgN:86 001028 360
Statement of Cash Flows
For the Year Ended 30 June 2018
CASH FTOWS FROM OPERATING ACTIVITIES:
Receipts from customers
Payments to suppliers and employees
lnterest received
lnterest paid
Net cash provided by/(used by) operating activities
CASH FTOWS FROM INVESTING ACTIVITIES:
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash provided by/(used by) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from/(repayment of) borrowings
Net cash provided by/(used by) financing activities
Net increase/(decrease) in cash and cash equivalents held
cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year 6 L62,2L9 398,510
Note
2018
s
2017
s
t,678,285
(1,557,700)
2,269
l.4,782].
lLt2,823l s8,O72
{139,s64)
15,000
l.46,9321
225,349
(123,s64) 178,417
(4) (50,336)
(4) ( 60,336)
(235,391)
398,610
176,153
222,457
The accompanying notes form part of these financial statements.
8.
L,437,209
(1,ss2,119)
2,9t9(832)
Fairy Meadow Bowling & Recreation Club [imited
ABN| 86 001028 360
The financial report covers Fairy Meadow Bowling & Recreation Club Limited as an individual entity. FairyMeadow Bowling & Recreation Club Limited is a not-for-for profit Company limited by guarantee, incorporatedand domiciled in Australia.
The functional and presentation currency of Fairy Meadow Bowling & Recreation Club Limited is Australiando lla rs.
Comparatives are consistent with prior years, unless otherwise stated.
1 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordancewith the Australian Accounting Standards - Reduced Disclosure Requirements, Australian Accountinglnterpretations, other authoritative pronouncements of the Australian Accounting Standards Board andthe Coryorotions Act 2001.
The financial statements have been prepared on an accruals basis and are based on historical costsmodified, where applicable, by the measurement at fair value of selected non-current assets, financialassets and financial liabilities.
Significant accounting policies adopted in the preparation of these financial statements are presented
below and are consistent with prior reporting periods unless otherwise stated.
2 Summary of Significant Accounting Policies
(a) Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable
that economic benefits associated with the transaction will flow to the Company and specific
criteria relating to the type of revenue as noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented
net of returns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax (GST)
sale of goods
Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the
transfer of significant risks and rewards of ownership of the Eoods and the cessation of all
involvement in those goods.
9
Notes to the Financial Statements
For the Year Ended 30 June 2018
Notes to the Financial Statements
For the Year Ended 30 June 2018
2 Summary of 5ignificant Accounting Policies (continued)
(a) Revenue and other income (continued)
Rental income
lnvestment property revenue is recognised on a straight-line basis over a period of the lease term soas to reflect a constant periodic rate of return on the net investment.
Subscriptions
Revenue from the provision of membership subscriptions is recognised in the year of receipt.
lnterest revenue
lnterest revenue is recognised using the effective interest rate method.
Donations
(b) Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred.
(cl lncome tax
(d) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term investmentswhich are readily convertible to known amounts of cash and which are subject to an insignificantrisk of change in value.
(e) Leases
Leases of fixed assets where substantially all the risks and benefits incidental to the ownership ofthe asset, but not the legal ownership that are transferred to the Company are classified as finance
leases.
10.
Fairy Meadow Bowling & Recreation Club Limited
ASN: 86 001028 360
Donations and bequests are recognised as revenue when received.
The Company is exempt from income tax under Division 50 of the /ncome Tox Assessment Act 1997.
Fairy Meadow Bowling & Recreation Club [imited
A8N:85 001 028 350
Notes to the Financial Statements
For the Year Ended 30 June 2018
2 Summary of Significant Accounting policies (continued)
(e) Leases (continued)
Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equalto the fair value of the leased property or the present value of the minimum lease payments,including any guaranteed residual values. Lease payments are allocated between the reduction ofthe lease liability and the Iease interest expense for the period.
Lease payments for operating leases, where substantially all of the risks and benefits remain withthe lessor, are charged as expenses on a straight-line basis over the life of the lease term.
(0 lnventories
lnventories are measured at the lower of cost and net realisable value. Cost of inventory is
determined using the weighted average costs basis and is net of any rebates and discounts received.Net realisable value is estimated using the most reliable evidence available at the reporting dateand inventory is written down through an obsolescence provision if necessary.
Net realisable value is the estimated selling price in the ordinary course of business, less theestimated costs of completion and the costs necessary to make the sale. Net realisable value is
estimated using the most reliable evidence available at the reporting date and inventory is writtendown through an obsolescence provision if necessary.
G) Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any
accumu lated depreciation and impairment.
Under the cost model, the asset is carried at its cost less any accumulated depreciation and any
impairment losses. Costs include purchase price, other directly attributable costs and the initial
estimate of the costs of dismantling and restoring the asset, where applicable.
Depreciotion
Property, plant and equipment, excluding freehold land, is depreciated on a straight-line or reducing
balance basis over the assets useful life to the Company, commencing when the asset is ready for
u5e.
Leased assets and leasehold improvements are amortised over the shorter of either the unexpired
period of the lease or their estimated useful life.
11.
Fairy Meadow Bowling & Recreation Club Limited
AsN:86 001 028 360
2 Summary of Significant Accounting Policies (continued)
k) Property, plant and equipment (continued)
The depreciation rates used for each class of depreciable asset are shown below:
Fixed asset class
Plant and equipment
Poker machines
Leasehold improvements
Depreciation rate
20 - 50.
20 - 330/0
2.s - 20%
At the end of each annual reporting period, the depreciation method, useful life and residual valueof each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.
lnvestment property is carried at fair value, determined annually by independent valuers. Changesto fair value are recorded in the statement of profit or loss and other comprehensive income as
other income/expenses.
Financial instruments are recognised initially using trade date accounting, i.e. on the date that theCompany becomes party to the contractual provisions of the lnstru ment.
On initial recognition, all financial instruments are measured at fair value plus transaction costs(except for instruments measured at fair value through profit or loss where transaction costs areexpensed as incurred).
Finonciol Assets
Financial assets are divided into the following categories which are described in detail below:o loans and receivables;. financial assets at fair value through profit or loss;o held-to-maturityinvestments.
Financial assets are assigned to the different categories on initial recognition, depending on thecharacteristics of the instrument and its purpose. A financial instrument's category is relevant to theway it is measured and whether any resulting income and expenses are recognised in profit or loss
or in other comprehensive income.
Notes to the Financial Statements
For the Year Ended 30 June 2018
(h) lnvestmentproperty
(i) Financialinstruments
L2.
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
2 summary of significant Accounting Policies (continued)
(il Financial instruments (continued)
All income and expenses relating to financial assets are recognised in the statement of profit or loss
and other comprehensive income in the 'finance income' or'finance costs' line item respectively.
Loons ond receivobles
Loans and receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market. They arise principally through the provision of goods and
services to customers but also incorporate other types of contractual monetary assets.
After initial recognition these are measured at amortised cost using the effective interest method,less provision for impairment. Any change in their value is recognised in profit or loss.
The Company's trade and other receivables fall into this category of financial instruments.
ln some circumstances, the Company renegotiates repayment terms with customers which maylead to changes in the timing of the payments, the Company does not necessarily consider thebalance to be impaired, however assessment is made on a case-by-case basis.
Finonciol ossets ot loir volue through profit or loss
Assets included within this category are carried in the balance sheet at fair value with changes in fairvalue recognised in finance income or expenses in profit or loss.
13
Discounting is omitted where the effect of discounting is considered immaterial.
Significant receivables are considered for impairment on an individual asset basis when they arepast due at the reporting date or when objective evidence is received that a specific counterpartywill default.
The amount of the impairment is the difference between the net carrying amount and the presentvalue of the future expected cash flows associated with the impaired receivable.
Financial assets at fair value through profit or loss include financial assets:. acquired principally for the purpose of selling in the near future. designated by the entity to be carried at fair value through profit or loss upon initial
recognition
Fairy Meadow Bowling & Recreation Club Limited
ABN:86 001028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
2 Summary of Significant Accounting Policies (continuedl
(i) Financial instruments (continued)
H e ld-to- mdtur ity i nve stme nts
Held-to-maturity investments are non-derivative financial assets with fixed or determinablepayments and fixed maturity. lnvestments are classified as held-to-maturity if it is the intention ofth€ Company's management to hold them until maturity.
Held-to-maturity investments are subsequently measured at amortised cost using the effectiveinterest method, with revenue recognised on an effective yield basis. ln addition, if there is
objective evidence that the investment has been impaired, the financial asset is measured at thepresent value of estimated cash flows. Any changes to the carrying amount of the investment arerecognised in profit or loss.
Ul lmpairment of non-financial assets
Where an indicator exists and regardless for indefinite life intangible assets and intangible assets
not yet available for use, the recoverable amount of the asset is estimated.
Where assets do not operate independently of other assets, the recoverable amount of the relevantcash-generating unit (CGU) is estimated.
The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal andthe value in use. Value in use is the present value of the future cash flows expected to be derivedfrom an asset or cash-generating unit.
Where the recoverable amount is less than the carrying amount, an impairment loss ls recognised in
profit or loss.
Reversal indicators are considered in subsequent periods for all assets which have suffered an
impairment loss.
L4.
At the end of each reporting period the Company determines whether there is an evidence of an
impairment indicatorfor non-financial assets.
Fairy Meadow Bowling & Recreation Club [imited
ABN: 86 001 028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
2 Summary of Significant Accounting Policies (continued)
(kl Employee benefits
Provision is made for the Company's liability for employee benefits arising from services renderedby employees to the end of the reporting period. Employee benefits that are expected to be whollysettled within one year have been measured at the amounts expected to be paid when the liabilityis settled.
Employee benefits expected to be settled more than one year after the end of the reporting period
have been measured at the present value of the estimated future cash outflows to be made forthose benefits. ln determining the liability, consideration is given to employee wage increases and
the probability that the employee may satisfy vesting requirements. Cashflows are discounted using
market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by creditagencies, with terms to maturity that match the expected timing of cashflows. Changes in themeasurement ofthe liability are recognised in profit or loss.
(l) Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST),
except where the amount of GST incurred is not recoverable from the Australian Taxation Office(Aro).
Receivables and payable are stated inclusive of GST
The net amount of GST recoverable from, or payable to, the ATo is included as part of receivables orpayables in the balance sheet.
Cash flows in the statement of cash flows are included on a gross basis and the GST component ofcash flows arising from investing and financing activities which is recoverable from, or payable to,the taxation authority is classified as operating cash flows.
15.
Fairy Meadow Bowling & Recreation €lub Limited
ABN:85 001028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
3 Critical Accounting Estimates and Judgments
The directors make estimates and iudgements during the preparation of these financial statementsregarding assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing thefinancial statements, however as additional information is known then the actual results may differ fromthe estimates.
The significant estimates and judgements made have been described below.
Key estimates - impairment of property, plant and equipment
The Company assesses impairment at the end of each reporting period by evaluating conditions specific tothe Company that may be indicative of impairment triggers.
Key estimates - provisions
As described in the accounting policies, provisions are measured at mana8ement's best estimate of theexpenditure required to settle the obligation at the end of the reporting period. These estimates are made
taking into account a range of possible outcomes and will vary as further information is obtained.
16.
Fairy Meadow Eowlint & Recreation Club Limited
ABN:86 001028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
4 Revenue and Other lncome
Reve n ue from conti n u i ng ope rotio ns
- Bar sales
- Gaming machine revenue
- Commission income
Other revenue
- lnterest received
- Rental income
- Donations and sponsorship
- Catering and club hire
- Subscriptions
- Competition fees
- Raffle income
- Rebate income
- Sundry income
5 Result for the Year
Expenses
lnterest expense on financial liabilities
Superannuation contributions
Rental expense on operating leases
Minimum lease payments
20L8
s
20t7
s
575,019
?L6,O77
58,447
78L,826
403,34L
57 ,429
2,919
47,9t0
599
25,538
L4,789
5,131
80,724
L9,957
31,322
2,269
44,970
7 ,837
24,949
10,668
5,669
81,428
L5,679
47 ,t35
228,989 240,604
832
39,172
4,782
39,174
29,27L 23,405
L7.
1,049,543 7,242,596
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 350
Notes to the Financial Statements
For the Year Ended 30 June 2018
6 Cash and Cash Equivalents
Cash on hand
Cash at bank
7 Trade and Other Receivables
2018
s
2017
s
52,295
LOg,924
52,788
345,822
t6z,zt9 398,610
Trade receivables
Other receivables
L,769
640,375
17,407
5,964
642,L44 11 ,311
8 lnventories
lnventories 29,777 31,015
9 Other non-financial assets
Prepayments 37,566 35,116
18
The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in
the financial statements.
Fairy Meadow Bowling & Recreation Club [imited
ABN: 86 001 028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
10 Property, Plant and Equipment
Leasehold bu ildings & greens
At cost
Accumulated depreciation
Plant and equipment
At cost
Accumulated depreciation
Poker machines
At cost
Accu mu lated depreciation
2018
s
942,O93
(48s,617)
2017
s
922,893
(451,181)
456,476 477,772
341,634
1292,2061
339,02s
127 s,94Ol
49,42A 63,085
293,603
(113,101)
176,738
(67 ,L761
Total property, plant and equipment 586,406 644,359
(a) Movements in Carrying Amounts
Movement in the carrying amounts for each class of property, plant and equipment between thebeginning and the end of the current financial year:
Leaseholdbuildings & Plant and Poker
greens equipment machines Total
sssSBalance at the beginning of year 471,712 63,085 109,562 544,359
Additions 19,200 3,499 1.16,855 139,564
Disposals - written down value l.245]. - 12451
Depreciation expense (34,4361 (16,911) (45,925) 197,2721
Balance at 30 June 2018
19.
456,476 49,428 180,502 685,406
180,502 109,562
Fairy Meadow Bowling & Recreation Club Limited
ABN: 86 001 028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
10 Property, Plant and Equipment (continued)
(b) Core and non-core property
As required under section 4U of the Registered Clubs Act 1975, the Club is required to specify thecore property and non-core properties owned as at the end of the financial year. The Companybeing Fairy Meadow Bowls & Recreation Club Ltd conducts and maintains a licensed bowling club onleased land at Lot 2 Cambridge Ave, Fairy Meadow NSW. Accordingly the premises on that leasedland and the adjoining bowling greens are regarded as core property.
The property at 5 Cambridge Avenue, Fairy Meadow NSW, is not considered to be core property ofthe Club given that it is not the defined premises of the Club, nor any facility provided by the Clubfor the use of its members and their guests, nor any other property declared, by a resolution passed
by a majority of the members present at a general meeting of the ordinary members of the Club, tobe core property of the Club.
11 lnvestment Property
2018
s
900,000
(449,400)
179,400
2017
s
685,000
215,000
Balance at start of year
Disposals
Fair value adiustments (note a)
Balance at end of year
Trade payables
Other payables
530,000 900,000
(a) lndependentvaluation
The Company's investment property is carried at fair value, as determined with reference to the saleof one of the properties amounting to 5530,000 in June 2018. The valuation is considered by theDirectors to be a reliable assessment offair value.
12 Trade and Other Payables
103,658
40,960
44,442
43,792
L44,6t8 88 ,234
20.
Fairy Meadow Bowlint & Recreation Club [imited
ABN:86 0O1 028 360
Notes to the Financial Statements
For the Year Ended 30 June 2018
13 Borrowings
CURRENT
Unsecured liabilities:
Other financial liabilities
Secured liabilities:
Lease Iiability secured
NON-CURRENT
Secured liabilities:
Lease liability secured
Leased liabiliti€s are secured by the underlying leased assets.
14 Employee Benefits
CURRENT
Provision for employee benefits
Long service leave
NON-CURRENT
Long service leave
2018
s
20L7
s
26,757
47,278 37,738
47 ,278 63 ,295
19,159 3,r45
43,326
23,465
62,1-39
62,689
7,894 3,996
2L
66,791 t24,828
Fairy Meadow Bowlint & Recreation Club [imited
ABN: 86 001028160
Notes to the Financial Statements
For the Year Ended 30.,une 2018
15 Leasint Commitments
(a) Finance lease commitments
Payable - minimum lease payments:
- no later than l year
- between l year and 5 years
Minimum lease payments
2018
s
2017
s
48,847
L7,297
38,940
3,151
66,L44 42,09t
Finance lease relates to recreational assets, solar panels and green equipment with terms of 1to 5years.
(b) Operating lease commitments
Non-cancellable operating leases contracted for but not capitalised in the financial statements
Payable - minimum lease payments:
- no later than 1 year 31,688 28,998
- between L year and 5 years 60,6?4 86,994
92,352 71,s ,992
Leases relate to the premises and office equipment with terms up to 15 years.
15 Financial Risk Management
The main risks Fairy Meadow Bowling & Recreation Club Limited is exposed to through its financialinstruments are credit risk, liquidity risk and market risk consisting of interest rate risk.
The Company's financial instruments consist mainly of deposits with banks, accounts receivable andpayable and leases.
22.
Fairy Meadow Bowling & Recreation Club Limited
ABN:86 001028 360
Notes to the Financial Statements
For the Year Ended 30 lune 2018
15 Financial Risk Management (continued)
The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in
the accounting policies to these financial statements, are as follows:
2018 2017
ssFinancial Assets
Cash and cash equivalents
Trade and other receivables
Total financial assets
Financial Liabilities
Financial liabilities at amortised cost
Trade and other payables
Borrowings
Total fi nancial liabilities
5
7
t62,219
642,144
398,510
!7,37L
804353 41s,981
12 L44,6La
66,417
88,234
66,44t13
211,055 ts4,675
Net fair values
Fair value estimation
Fair values derived may be based on information that is estimated or subject to judgment, where changesin assumptions may have a material impact on the amounts estimated. Areas of judgment and theassumptions have been detailed below. Where possible, valuation information used to calculate fair valueis extracted from the market, with more reliable information available from markets that are activelytraded.
17 lnterests of Key Manatement Personnel
The total remuneration paid to key management personnel of the Company was S109,7602017: S98,4s2).
18 Contingent Liabilities and contintent Assets
ln the opinion of the directors, the Company did not have any contingencies at 30 June 2018 (30 .lune
2017: None).
23.
Fair values are those amounts at which an asset could be exchanged, or a liability settled, betweenknowledgeable, willinB parties in an arm's length transaction.
Fairy Meadow Bowlint & Recreation Club Limited
ABN: 86 001028 360
Notes to the Financial Statements
For the Year Ended 30.lune 2018
19 Related Party Transactions
(a) During the year, there were two occasions where a family member of a Director was employed by
the Club under the relevant industrial award and is subject to the terms and conditions applicableto all employees of the Company.
(b) ln June 2018, an investment property was sold to a director for 5530,000. The terms of thecontract were on normal commercial terms and conditions no more favourable than thoseavailable to other parties.
20 Events after the end of the Reporting Period
The financial report was authorised for issue on 21 August 2018 by the Board of Directors
No matters or circumstances have arisen since the end of the financial year which significantly affected ormay significantly affect the operations of the company, the results of those operations or the state ofaffairs of the Company in future financial years.
24.
Transactions between related parties are on normal commercialterms and conditions no more favourable
than those available to other parties unless otherwise stated.
Fairy Meadow Bowling & Recreation Club Limited
ABN:86 001 028 350
Directors' Declaration
The directors of the Company declare that
1. The financial statements and notes, as set out on pages 5 to 24, are in accordance with the CorpordtionsAct 2001 and:
comply with Australian Accounting Standards - Reduced Disclosure Requirements; anda
b. give a true and fair view of the financial position as at 30 June 2018 and of the performance for theyear ended on that date of the Company.
2. ln the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay itsdebts as and when they become due and payable.
This declarat is made in accordance with a resolution of the Board of Directors
G Lester
Chairman
Wollongong
2l August 2018
25.
a
DaleyaCochartered accountants I nteq rated F i n ancial So/utions
We have audited the financial report of Fairy Meadow Bowling & Recreation Club Limited ("the Company"),which comprises the balance sheet as at 30 June 2018, the statement of profit or loss and othercomprehensive income, statement of changes in equity and statement of cash flows for the year ended, andnotes to the financial statements, including a summary of significant accounting policies, and the directors'declaration.
ln our opinion, the accompanying financial report of the Company is in accordance with the Corporotions Act2001, including'.
(i) giving a true and fair view of the company's financial position as at 30 June 2018 and of its financialperformance for the year ended; and
(ii) complying with Australian Accounting StandardsCor po rotions Re g ulotio n s 200 1.
Reduced Disclosure Requirements and the
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under thosestandards are further described as in the Auditor's Responsibilities for the Audit of the Finonciol Report sectionof our report. We are independent of the Company in accordance with the auditor independencerequirements ol lhe Corporotions Act 2001 and the ethical requirements of the Accounting Professional andEthical Standards Board's APES 1L0 Code of Ethics for Professionol Accountonts (the code) that are relevant toour audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in
accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropin ion.
lnformation other than the Financial Report and Auditor's Report Thereon
The directors are responsible for the other information. The other information is the directors' report for theyear ended 30 June 2018, but does not include the financial report and auditor's report thereonaccompanying the financial report.
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
ln connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
26
lndependent Audit Report to the members of Fairy Meadow Bowling & Recreation club Limited
Report on the Financial Report
Opinion
DaleyaCochartered accountants I nteg rated Financial So/utlons
lndependent Audit Report to the members of Fairy Meadow Bowling & Recreation Club Limited
lf, based on the work we have performed, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.
The directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and theCorpordtions Act 2001 and for such internal control as the directors determine is necessary to enable thepreparation of the financial report that gives a true and fair view and is free from material misstatement,whether due to fraud or error.
ln preparing the financial report, the directors are responsible for assessing the Company's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the directors either intend to liquidate the Company or to cease operations, orhave no realistic alternative but to do so.
Auditor's Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free frommaterial misstatement, whether due to fraud or error, and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,the could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial report.
ldentify and assess the risks of material misstatement of the financial report, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error, as fraud may involvecollusion, forgery, intentional omissions, misrepresentations, or the override of internal control.Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on theeffectiveness of the Company's internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
27.
Responsibilities of Directors for the Financial Report
As part of an audit in accordance with the Australian Auditing Standards, we exercise professionaljudgementand maintain professional scepticism throughout the audit. We also:
chartered accountants I nteg rated Financ i al So/utlons
lndependent Audit Report to the members of Fairy Meadow Bowling & Recreation Club Limited
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and,based on the audit evidence obtained, whether a material uncertainty exists related to events orconditions that may cast significant doubt on the Company's ability to continue as a going concern. lfwe conclude that a material uncertainty exists, we are required to draw attention in our auditor'sreport to the related disclosures in the financial report or, if such disclosures are inadequate, to modifyour opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However, future events or conditions may cause the Company to cease to continue as a going
concern.
Evaluate the overall presentation, structure and content of the financial report, including thedisclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
DaleyaCo
r-6
We also provide the directors with a statement that we have complied with relevant ethical requirementsregarding independence, and to communicate with them all relationships and other matters that mayreasonably be thought to bear on our independence, and where applicable, related safeguards.
DaleyChartered Accountants
ffiPa rtn er
21 August 2018
Wollongong
Liability limited by a scheme approved under Professiona I Standa rds Legislation
28
We communicate with the directors regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.
29.
Disclaimer The additional financial data presented on pages 30 ‐ 33 was compiled by the Fairy Meadow Bowls & Recreation Club Ltd (“the Company”). This data has not been subjected to the auditing procedures applied in our statutory audit of the Company for the year ended 30 June 2018. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person in respect of such data, including any errors of omissions therein however caused. Daley & Co Chartered Accountants 12 September 2018 Liability limited by a scheme approved under Professional Standards Legislation
Fairy Meadow Bowling & Recreation Club Limited ABN 86 001 028 360
30.
FAIRY MEADOW WOMEN’S BOWLING CLUB ACCOUNT FOR THE YEAR ENDED 30 JUNE 2018
2018
$ 2017
$ BALANCE SHEET CURRENT ASSETS
Operating Account 7,637 7,382
Investments 5,830 7,658
TOTAL ASSETS 13,467 15,040
REPRESENTED BY:- ACCUMULATED FUNDS
Balance at Start of Year 15,040 16,667
Surplus/(Loss) for the Year (1,573) (1,670)
Unpresented Cheques - 43
Balance at End of Year 13,467 15,040
Fairy Meadow Bowling & Recreation Club Limited ABN 86 001 028 360
31.
FAIRY MEADOW WOMEN’S BOWLING CLUB ACCOUNT FOR THE YEAR ENDED 30 JUNE 2018
2018 $
2017 $
DETAILED INCOME STATEMENT
INCOME Members Fees 3,060 3,200
Competition Fees 6,987 8,410
Competition Fees Special Events 244 -
Donations 66 40
Goods for Resale 20 80
Fundraisings 1,204 1,252
Interest Received 172 190
Carnivals, Trophies & Sundries 4,300 3,617
Reimbursement – FMBRC Limited 170 -
16,223 16,789
EXPENDITURE Affiliation & Registration 4,241 4,231
Catering 4,874 4,765
Committee Expenses 669 292
Donations & Gifts 1,529 937
Raffle Prizes 180 386
Green Fees 465 1,165
Transport 155 489
Trophies 1,440 2,138
Carnivals & Sundries 3,243 4,057
Presentation Expenses 1,000 -
17,796 18,459
Loss for the Year (1,573) (1,670)
Fairy Meadow Bowling & Recreation Club Limited ABN 86 001 028 360
32.
SOCIAL FISHING CLUB ACCOUNT FOR THE YEAR ENDED 30 JUNE 2018
2018
$ 2017
$ BALANCE SHEET CURRENT ASSETS Cash on Hand 478 1,156 Cash at Bank - IMB Account 47 397
525 1,553
REPRESENTED BY:- ACCUMULATED FUNDS
Balance at beginning of year 1,553 811
Surplus/(Loss) for the Year (1,028) 743
Balance at end of year 525 1,553
DETAILED INCOME STATEMENT
INCOME Membership Fees - 155
Raffles 4,240 9,328
4,240 9,483
EXPENDITURE Raffle Prizes 5,078 5,500
Jackpot Prizes - 3,240
Raffle Tickets 190 -
5,268 8,740
Surplus/(Loss) for the Year (1,028) 743
Fairy Meadow Bowling & Recreation Club Limited ABN 86 001 028 360
33.
ROAD RUNNERS ACCOUNT FOR THE YEAR ENDED 30 JUNE 2018
2018
$ 2017
$ BALANCE SHEET
CURRENT ASSETS Cash on Hand 422 444
Cash at Bank - IMB Account 3,731 3,411
4,153 3,855
REPRESENTED BY:- ACCUMULATED FUNDS
Balance at Start of Year 3,855 1,591
Surplus/(Loss) for the Year 298 2,264
Balance at End of Year 4,153 3,855
DETAILED INCOME STATEMENT INCOME Membership Fees 415 160
Competition Fees 835 520
Interest Received - 1
Travel Fares - 437
Raffles 456 2,304
ABC Competition - 622
Sales - shirts 895 -
3,561 4,044
EXPENDITURE
AGM Expenses - 95
Bank Charges 2 -
Bus Hire - 605
Dinners 526 560
Prizes 334 520
Green Fees 256 -
Purchases – Shirts 2,145 -
3,263 1,780
Surplus/(Loss) for the Year 298 2,264