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Year Ended 30th April 2014

ANNUAL REPORT129th

Royal Queensland Yacht Squadron Limited

R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D2

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BY WARRANTDated 21 July 1894

Under the Seal of Office of the Lord High Admiral of the United Kingdom of Great Britain and Ireland etc., Members of the Club are permitted to wear on Board their respective vessels the Blue Ensign of Her Majesty’s Fleet, on certain conditions, as laid down in the said Warrant.

BY DESPATCHDated 13 March 1902

His Majesty, King Edward VII, has been pleased to bestow the title “Royal” upon the “Queensland Yacht Club”.

BY DESPATCHDated 12 July 1961

Her Majesty, Queen Elizabeth II, has been graciously pleased to approve the change of name of your club to the Royal Queensland Yacht Squadron.

INCORPORATIONRoyal Queensland Yacht Squadron Limited Australian Company Number 053 989 272 is a registered company under Division 1 or Part 2.2 of the Corporations Law of Queensland and because of its registration it is an incorporated company.

The company is limited by guarantee.

The company is a public company.

The day of commencement of registration is the fourteenth day of October 1991.

PATRONHer Excellency Ms Penelope Wensley AO, Governor of Queensland

COMMODOREKevin Miller

VICE COMMODOREIan Threlfall

REAR COMMODOREMark Gallagher

HONORARY TREASURERDavid Virgo

HONORARY MEASURERBill Wright

GENERAL MANAGERPaul Hughes

GENERAL COMMITTEERosemary Collins (resigned Nov 13), Dugald Henderson (from Dec 13), Mark Hipgrave, Michael Job, Brian Pozzey, Fraser Spencer, David Virgo,

FINANCE COMMITTEEDavid Virgo (Chairman), Peter Geroff, Stephen Best,Rod Stewart, Stephen Toms

SAILING COMMITTEEMichael Job (Chairman), Peter Bates,Tam Faragher, Curtis Skinner, Kerry Waraker

POWERBOAT COMMITTEEFraser Spencer (Chairman), Mick Atkinson, Colin Gibbons, Chris Land, Peter Tyquin

WORKS COMMITTEEMark Hipgrave (Chairman), John Nelson, Noel Paterson, John Webster, Peter Watkins

HOUSE & ENTERTAINMENT Brian Pozzey (Chairman), Trish Brewer, Vaness Freebairn, Maryna King, Roger McDowall

MEMBERSHIP COMMITTEEDugald Henderson (Chairman - from December 13) Rosemary Collins (resigned Nov 13), Chris Grantham, Michael Moore, Kim Redstall (resigned Sept 13), Curtis Skinner, Grant Somerville

Front Cover: Etchells Australasian Winter Championships 2014 - ‘Gen XY’ Matthew Chew with crew Ashley Deeks, Brian Donovan and Paul Wyatt on their way to the regatta win. Photo: Teri Dodds

3R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D

C O M M O D O R E ’ S A N N U A L R E P O R T 2014

ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES

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In the 130 year history of the Squadron there have been times for growth and times for consolidation. In the rising economic cycle throughout Australia, we have grasped several opportunities for growth and the 2013/14 financial year has been a period of building and planning for more building in the coming year. The biggest news of course was that in November 2013, having received building approval for a new kitchen at ground level to service the successful Pavilion and the whole functions area, an opportunity arose to have donated to us a 1000m2 building from the Port of Brisbane, used by them as a visitor’s centre. The building has in place a fully fitted kitchen, a 100 seat auditorium, a 250 seat bistro and a pre-function gallery, eminently suited to a display of our history. After frantic budgeting and planning, we agreed to take up the offer of the building which was then barged to our site and re-assembled for completion in July 2014, record time for such a structure but also at not much more cost than the proposed kitchen and services.

Elsewhere, Committee Chairmen have detailed their year’s performance but I would particularly like to thank the House Chairman, Brian Pozzey and his team, for returning the house to above budget performance and for Fraser Spencer and his Power Boat group, soon to be renamed Cruising and Navigation Committee, for their passion which manifested in increased numbers of both events and participants. Our core business of sailing was strongly managed by the Sailing Committee led by Michael Job and a group of active sailors. They need to be commended for bravely completely overhauling the sailing office staff configuration, for integrating a fleet of 6 Elliott match racing keel boats and for conducting a complete review of their Sailing Office Business Plan. In so doing, they will become more a liaison on behalf of sailing competitors and hand over the Sailing Committee to a group of active volunteers in race management and regatta planning to assist our limited staff, particularly in peak activity times. Despite a higher cost, our Sailing Academy and Sailing Administration staff have

excelled in the quality of their work and now that the gaps are identified, we are confident that the coming year will see a smoother operation of our fleet racing and sailing activities. What is indisputable though is that we can’t expect them to do everything and perhaps we have tried to be all things to all people. This coming year, we will focus on junior sail training and at the other end, training in small keelboats to provide a feeder to our yachts of skilled crew members. A focus group is currently reviewing how to handle the multiple middle grounds of schools sailing and two handed dinghies without straining the Squadron’s resources, both in equipment and manpower.

With the new building in full operation by October, we propose a focus on corporate sailing, conferencing and seminars set around our sailing and boating sport facilities rather than rely on weddings as a function venue use alone. The auditorium, function rooms, board rooms and cocktail areas can be cross-utilised and spread throughout the week whereas weddings tend to be on Saturdays and interfere with our core business and member patronage.

Financially, the reported profit for the year using strict statutory accounting for depreciation, amortisation and expense interpretation was $182,000. However, after adding back Motel and Marina depreciation the E.B.I.T.D.A. was in excess of $1m for the year. This strong performance of our long term annuities of income from motel and retained marina berths allowed us to confidently redraw part of the original Westpac debt facility from the motel to fund the new clubhouse, with a view to paying that down fully over the next five years from recurring income. Any improvement of House performance as a result of the new building will be a bonus and can be used to further enhance the quality of our fit out and redecorate and repair the now 50 year old ‘Greg Cavill Building’, as it will be called as from its 50th Anniversary of its opening celebrated on Season Opening Day 2014. Credit for the financial stability of the Squadron over the past 10 years should go in no small part to our treasurer, David Virgo,


ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITYABN 25 053 989 272

who puts an enormous amount of hours into the Squadron’s financial affairs on both a micro and macro scale.

In dealing with our staff every day, I never cease to be amazed at their passion for and dedication to the Squadron. As the volume and size of commercial transactions and turnover grow, so does their workload and compliance requirements, yet they rarely complain. The new building will allow us to expand their office space to 150m2 and will allow a centralisation of sport and general administration for better efficiency and sharing of peak workloads. It will also give them a well-deserved boost in amenity and allow a slight expansion of our accounting and function workforce in response to the expansion of function capability. On behalf of all members, I thank every one of them for their superb work on our behalf.

Honouring Past Commodore John Harrison’s lifetime commitment to the support of Olympic Sailing, our new ‘RQYS John Harrison Olympic Support Foundation’ has been formed. Although it has taken several months to achieve formal tax deductibility in the coming year it will sponsor the construction of $500,000 worth of trade sheds on site to better house our quality boating trades on long term leases and will thereby have available up to $100,000pa to support our young

talented sailors get to qualifying international regattas. Thereby initial contributors of capital can confidently know that their capital will achieve a 20% return in perpetuity, making it the strongest donation they can ever make on a once and for all basis to the support of the Squadron’s sailing talent’s future. This year’s three supported athletes, Jake Lilley, Ashley Stoddart and Joanna Sterling have improved their performance and world rankings extraordinarily and if they all achieve a berth in the 2016 Rio Olympic team, our efforts to support them may inspire others to follow them through the Squadron’s Olympic pathway programme.

Recent legal challenges by a small group of three Marina berth holders has led us to focus heavily on our history and the efforts of those whom have gone before us and, more than ever, I am totally satisfied and proud of the decisions of my predecessors and the current Board in putting future generational interests ahead of individual gains. Confident in the diligence of the numerous talented and experienced businessmen whom have given their time free of charge to plan those structures, we will defend them vehemently and continue to look 20 and 25 years ahead with the interests of all members and indeed all berth holders in mind. History will prevail.

Kevin MillerCommodore

C O M M O D O R E ’ S A N N U A L R E P O R T 2014



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T R E A S U R E R ’ S R E P O R T 2014The Squadron made an operating profit of $182,506 in the 2013/2014 year which was an 89% improvement compared with a profit of $96,636 in the previous year. This improvement was largely due to a strong lift in profit from House.

In addition to the above profit by the Squadron, trust income of $16,980 was received from the Motel and $264,675 from RQYS Nominees. The trust income from Motel was lower than last year due to higher interest costs and the last of the key money being brought to account last year.

The income from Nominees was higher than last year as berth rental income was higher as berths used last year to house vessels displaced during the refurbishment of Marina 1 in the previous year were available for rent.

Our consolidated result from all entities was a profit of $158,902 which was lower than in the prior year due to a book loss in RQYS Marina 1 Trust due to depreciation of the refurbished Marina 1 structure.

Comments on the results of each of the sections follow:HouseHouse made a profit of $138,191 which was a very substantial improvement above the profit of $17,099 last year. Revenues and profits were up in all areas and were benefitted greatly by the new Boardwalk Pavilion and the better weather this year.

Sporting OperationsThe cost of Sporting Operations increased from last year’s level of $181,553 to $311,512 this year.

This increase was due to the need to support the activities with an investment in a club coach and a bosun to better handle the vessel maintenance. The slower implementation of the Elliot 6 program also impacted on the results.

MarketingMarketing made a profit of $62,437 in the year compared with a loss of $53,105 in the previous year. This turnaround was due to substantially higher sponsorship income supporting the acquisition of the Elliot 6’s.

Miscellaneous TradingThis area which includes revenues from both the hardstand area and fuel sales made a profit of $716,534 which was a 5% improvement over the $684,401 earned last year.

Grounds and CanaipaThe cost to the Squadron of maintaining its grounds and Canaipa of $259,393 increased marginally from the cost last year of $244,603.

Member Services and AdministrationThe net cost of member services and administration was $168,842 in 2013/2014 compared with $123,295 in the prior year. This increase was due to increases in wages including the costs of “days in lieu”.

Capital ExpenditureThe Squadron spent $952,148 on capital expenditure during the year of which $681,592 was capital work in progress costs was for the new building. The remaining $270,556 included $203,700 for vessels and equipment for Sporting Operations and $28,692 for the new point of sale upgrade.

Cash FlowCash from operating activities was positive at $441,397.This cash inflow together with increased borrowings of $536,129 funded the capital expenditure of $952,148. There was a net cash flow of $25,378 which has lifted the cash on hand at year end to $210,836.

Financial PositionThe financial position of the Squadron remains sound although the increased borrowings for the new building will place pressure on this financial position.

SummaryThe year saw a much improved trading result for the Squadron although work remains to be done to reduce the costs of Sporting Operations.

David VirgoHonorary Treasurer


ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272

S A I L I N G C O M M I T T E E R E P O R T 2014Recognising that sailing is the core activity of the Squadron, your Sailing Committee have, over the past 12 months, continued to support a long term commitment to the future of the sport and the ongoing growth of the Squadron’s sailing activities.

This includes both staff and resources to grow membership and participation levels in sailing. New key personnel have been sourced including a highly regarded full time Club Coach, Tackers Co-ordinator, Sailing Office Manager and a Boson to maintain the Squadron’s 93 training and support craft. The fleet of Elliot 6’s have opened many new opportunities for our sailing academy and for new events. The Optimist dinghy, Pacer and support boat fleets have been added to, and much overdue maintenance has been undertaken. On-going maintenance systems are now in place to protect the Squadron’s assets.

All of this is very much an investment in the Squadron’s future, with participation in sailing, membership growth and sustaining membership our goals. These strategies have already begun to bear fruit with the Squadron’s junior sailing ‘Tackers’ programme amongst the largest in the country. The Opti fleet is now enjoying record numbers and the Sabot fleet is the largest it has been in a decade. Support coaching for all juniors is part of what we do, not just to identify talent but to encourage all our juniors to both enjoy and remain in the sport.

The Tackers programme, Sail and Play, Ladies Sailing and now with the Keelboat school coming on line, we are introducing hundreds of potential new members each year to the Squadron – juniors, youths, their parents and other adults alike. We are instigating strategies to keep these juniors in the sport (and at the club) during their distracting teenage years and into young adulthood. Pathways are available to continue into Olympic and high performance classes and the E6’s for match racing and training crew to sail on our division yacht fleets. All this activity has already begun to reap rewards in both increased new membership and traffic

though the house facilities. No one could visit the Squadron on a weekend and not be blown away by the amount of junior sailing activity. We have invested in training and new staff to service our sailing members in the area of results and regatta management and this is now in place (However the sailing office is always looking for volunteers to help with results!)

As I said before this is a long term strategy and does come with some considerable cost, and as income from the E6’s and the Sailing Academy increases and expenses are fixed, this cost will reduce significantly. Over the past few months this cost of sailing has been the subject of a review of the Squadron’s sailing activities and further strategies have been put in place. This investment in sailing is vital to protect the Squadron from the global shrinking of the sport and to ensure that our service to members and the Squadron’s reputation for excellence in sailing continues into future generations.

The Squadron enjoyed many sailing highlights this past season and whilst numbers were down in the senior off-the-beach classes the results of some of our sailors were remarkable.

Greg Adams took out his 3rd World Laser Masters title, this time in his first year as a Grand Master. This year the Squadron had the great honour of, once again, hosting the Australian Finn Championships, an event the Squadron has a long history with. Jake Lilly added his to the many other Squadron members’ names that are engraved on that famous trophy. Jake was the first junior to win the senior trophy and has gone on to many other great results this year, most notably the European Junior title. Mitch Kennedy, Joanna Sterling, Ashley Stoddard and Lewis Brake have also achieved some great results in Europe recently.

Our junior Yachtsman of the Year Lara O’Brien was the only Queenslander selected in the Australian Youth team for the Youth World



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S A I L I N G C O M M I T T E E R E P O R T 2 0 1 4 Championships and we wish her every success.Ben Markey was 3rd in the Australian Sabot Championships and Josh Van Roon was the highest place Queenslander at the Australian Optimist Championships as well as 11th highest Australian. He was selected in the Australian Opti team. Hamish Thorne took at 1st overall in the Intermediate fleet at the Opti Nationals.

The Divisional yachts had a great season with good fleets and some remarkable results in major offshore events including Tony Kinsman and his crew aboard Blunderbuss taking out first overall in the 2013 Brisbane to Keppel Yacht Race and Sailing Committee member Tam Faragher and his crew on Kerumba taking out 6th overall in this year’s Sydney to Hobart Race.

The Etchells fleet continues to buck the trend of shrinking fleets and was regularly getting 12 boats on the start line each Saturday throughout the past season.

The Etchells Brisbane Fleet Championships had an amazing 19 entries with several interstate crews competing. Particular mention to Matt Chew and his crew for consistently being in the top 5 at regattas around the country. We are expecting big things from this crew at the Worlds in 2018 here at the Squadron, be it that the Squadron’s bid is successful!

In closing let me acknowledge our wonderful team of volunteers that continue to provide world championship level race management every weekend of the year. The Squadron is very fortunate in having such a dedicated team. On behalf of all competitors, thank you.

It has been my great honour to serve as your Chairman of Sailing over the past three years. My Committee and I are proud of what we have achieved. We wish the new Sailing Committee and all competitors every success in season 2014/15.

Michael JobChairman - Sailing Committee



P O W E R B O AT & C R U I S I N G C O M M I T T E ER E P O R T 2014

Our Committee has had another good year thanks to our team members. Our events have run smoothly with good camaraderie.

The Goodwill Cup was successful with RQ retaining the trophy from Southport for yet another year.

Myora Cup attracted 20 boats and the Past Commodores’ Cup, our new day event, has been well received and supported.

Next season we plan to drop Division 1 and 2 in favour of a single speed category for all our navigation events. The Tack Tracker system is now running well with Chris Land finalising results for the Past Commodores’ event within an hour. At the request of members we rejuvenated the Heavies Race, an event not held since 1995. This is where the power boats carry a sailing rig and the yachts are required to sail backwards. We received good support for this fun event and at this stage it will continue to be held annually.

With our representatives from the very active power and sail cruising groups our Committee scope of interest is broadening. Check the RQ web page for their monthly cruise calendar!

We look forward to our third Presentation Dinner this year, aptly named - The Cruising and Navigation Presentation Dinner. This event is well attended with good representation from each sector.

Our first Opening Day ‘Pirate Challenge’ is being planned this year where we are tempting members from all boating areas to participate in our questionnaire and treasure hunt.

Thanks to our Committee, our active members, our many volunteers who support our events and to our sponsors who donate prizes.

Fraser SpencerChairman - Powerboat Committee



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M E M B E R S H I P C O M M I T T E E R E P O R T 2014

Membership Committee focus for 2014 has been to ensure that members have fun through their membership of the Squadron. A number of new initiatives can be found in the Winter issue of “Mainsheet”.

The main function of Membership Committee remains making recommendations to General Committee in respect of applications for membership and transfers between classes.

Membership numbers have remained reasonably steady over the last few years with only slight increases in numbers being recorded. The challenge is to ensure all members continue to enjoy our world class facilities and participate in Squadron activities, whether that be racing to Keppell or attending the popular social events or joining one of the cruising groups.

A Membership Drive has been announced for the whole of the 2014 2015 Squadron year. To help achieve some permanent growth in our numbers, General Committee has approved a moratorium on Joining Fees. Members are encouraged to seek like minded people and encourage them to join the club. The facilities are here and available for immediate enjoyment. Incentives have been provided with an exciting reward to be announced later in the year for the member who introduces the most Full Members or equivalent.

Investigations into One Day memberships have been undertaken and this form of membership

will be introduced in the immediate future. This will facilitate the operation of our Elliott 6 fleet and help develop interest in the sport of sailing and in our club.

Discover Sailing as promoted by Yachting Australia was held in October 2013 and will be conducted again later this year. This is an opportunity for us to showcase, not only our club, but the potential for enjoyment on the water or simply relaxing in the magnificent Boardwalk Café.

One of the issues that the Committee will focus on next year will be to ensure members understand that the Royal Queensland Yacht Squadron is at the forefront of yachting clubs in Australia both in facilities available, but more importantly through the camaraderie that pervades the club and makes the club a great place to be.

Lastly, my thanks to the other Committee members for their dedication over the whole year and making my task both that much easier and enjoyable. I also wish to acknowledge the work done by Rosemary Collins during her period as Chairman prior to joining the Board of Yachting Australia. The efforts of Alicia Soszynski, Membership Administrator, in facilitating the Committees’ work are also greatly appreciated.

Dugald HendersonChairman - Membership Committee



H O U S E & E N T E R TA I N M E N T C O M M I T T E E R E P O R T 2014Overall the House has had a successful year. The financial performance has increased with a profit figure of $138,191 as opposed to 2013 where the performance was less than desired.

This is a significant result that can be attributed to a number of factors; however, it is felt that the new Pavilion building is the most significant factor in presenting us with a first class under cover/outdoor facility which is a joy to use and with views to die for.

Another factor has been improved service by the introduction of table ordering systems which have taken the pressure off the bistro counter. The feeling of a more a-la-carte menu has also enhanced the experience of those dining in the Pavilion.

Much of the early stage of the year was taken up with the proposal to build a new kitchen facility and upgrade the Flags experience. This was soon to be dropped as negotiations commenced to

transport and reassemble the Port of Brisbane Visitor’s Centre from the Port to Manly. This facility, when it is up and running, will provide us with a working kitchen, a new 250 seat function room, auditorium and a warm welcoming entry to the club. This should open up a whole new set of opportunities for the club and take us to a new plain as far as the hospitality offerings we will have. This will enable us to chase the conference, convention, larger function markets, small meeting markets as well as display and meeting facilities.

Following the success of The Commodore’s Ball in the Pavilion, we held the Jimmy Buffet night in February. The night was a roaring success and will be followed up by a ‘Cuban’ night in September. Other functions are planned for later in the year as soon as we get budgeting and concept ideas together.

I commend this report to the members.

Brian PozzeyChairman – House & Entertainment Committee

W O R K S C O M M I T T E E R E P O R T 2014Works Committee struggled to find a purpose during the year. It had been decided during 2012/13 that all capital works projects (including the new clubhouse building) would be managed by external project managers reporting to the General Manager, with day-to-day grounds maintenance activities to be carried out by the Marina Manager, also reporting to the General Manager.

Works Committee’s role was to be limited to providing advice on capital projects and the like on an ‘as requested‘ basis.

This meant there was little for the Works Committee to do during this year, and the decision to cancel/delay the upgrade of the Marina Office and Canaipa facilities exacerbated this situation.

Meetings were held with the Commodore and General Manager in September 2013 and again in March 2014 to clarify a new role for this Committee, and it was confirmed at the General Committee meeting on 27 February, that the Works Committee would be redirected to give more emphasis on infrastructure development rather than day to day issues.

This new group is to be formed to commence in the new club year.

Mark HipgraveChairman - Works Committee



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CONTENTS

Director’s Report

Independence Declaration

Statement of Comprehensive Income

Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Consolidated Financial Statements

Director’s Declaration

Independent Auditor’s Report

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C O N S O L I D AT E D F I N A N C I A L R E P O R TFOR THE YEAR ENDED 30 APRIL 2014



D I R E C T O R S ’ R E P O R T 2014



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D I R E C T O R S ’ R E P O R T 2014



A U D I T O R ’ S I N D E P E N D E N C E D E C L A R AT I O N FOR THE YEAR ENDED 30 APRIL 2014

S TAT E M E N T O F C O M P R E H E N S I V E I N C O M EFOR THE YEAR ENDED 30 APRIL 2014



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S TAT E M E N T O F C O M P R E H E N S I V E I N C O M EFOR THE YEAR ENDED 30 APRIL 2014



S TAT E M E N T O F F I N A N C I A L P O S I T I O NFOR THE YEAR ENDED 30 APRIL 2014

Notes to the financial statements are attached



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C O N S O L I D AT E D S TAT E M E N T O F C H A N G E S I N E Q U I T Y

FOR THE YEAR ENDED 30 APRIL 2014




C O N S O L I D AT E D S TAT E M E N T O F C A S H F L O W SFOR THE YEAR ENDED 30 APRIL 2014




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N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2014



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N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2014



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N O T E S T O T H E C O N S O L I D AT E D F I N A N C I A L S TAT E M E N TSFOR THE YEAR ENDED 30 APRIL 2014



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D I R E C T O R ’ S D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2014

19-34



I N D E P E N D E N T A U D I T O R ’ S R E P O R T FOR THE YEAR ENDED 30 APRIL 2014



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M E M O R I A L A N D T R O P H Y D O N AT I O N SFOR THE YEAR ENDED 30 APRIL 2014

MEMORIALS

C Andrew 1,000 E Amos 200 H B Lucas 200W S Brett 200 R G Andrew 200 R W Mathers 1,000F A Bruce 200 J G P Baron 200 Mowbray Park Sailing Club 200R Burton 200 W Bishop 200 Sir Ellis Murphy 400D Campbell 900 P M Brady 200 W S Norton 200L Curtin 250 G Cavill 200 P F O’Hare 200W A Douglas 500 J B Cuneo 200 J D Perrins 200N T C Ekelund 1,000 V R Day 200 B C Robinson 200G H Griffiths 110 E A Dolby 200 B J Russell 200E N Ham 200 C A Fraser 200 G Savage 750J H Hart 250 N J Ham 200 Sir Frank Sharpe 200J Hunter 1,000 Sir Byrne Hart 200 B G S Schooley 100M Leutenegger 4,000 L R Hendy 300 R V & W J Thompson 200J M MacGibbon 200 W G Kirby 200 W E Whatmore 200R McQuaker 5,000 J Larking 300 S N Wood 500D G & H W Munro 200 N G Lockyer 300 The Allan Wilson Family 1,000W A O’Hare 2,000 E Lockyer 200 S Winston-Smith 200J H Robinson 400 R & J Legg 200 N J Wright 200F W Tritton 800 J P Love 200 Inter-Club Laser Trophy 100J Underwood 400 A J Love 100A & J Brooke 1,000

$19,810 $10,450Total Donations $30,260

PERPETUAL TROPHY FUNDS

$ $$


RQYS MARINA LIMITEDABN 23 010 217 991



M A R I N A C H A I R M A N ’ S R E P O R T 2014

With the completion of a full rebuild of the 464 berths in Marina One by mid-2013, on time and on budget, it is noteworthy that the maintenance costs have substantially reduced and values of leasehold berths are slowly increasing. Leases to 2041 are complete and the Marina is in splendid condition, ready for its next 25 year life cycle.

Whilst 32% of Marina One berths are under 12 metres, this reflected the demand and size of boats in the 1980’s, lately most of the vacancies and lesser rates of sales per linear metre are in those smaller berths. Nevertheless, they provide good value with the net present value of a 10 metre berth lease to 2041 at 6% is $72,341 yet they are selling for less than $60,000. Larger berths are in stronger demand and are transacting at closer to $10,000/linear metre and above. Whilst individual berth registered leases stopped us from being able to redesign the Marina layout in 2012, there is no doubt that a reconfiguration will be necessary by 2041. The extra 10 year term held by the Squadron to 2051 will allow future committees the freedom to deal with a reconfiguration and negotiate new lease arrangements with the comfort of 10 years of term up their sleeve. A formal first right in priority to occupy a berth beyond 2041 is clearly set out in the new sub-lease document whereas a formal option would have continued the complication of individual location rights again stopping the Committee at that time from redesigning the layout to suit the market at that time. I predict that the demand will be for more and more multi hull berths of which we officially have none in Marina One and a greater proportion of larger berths as smaller boats are more economically stored out of the water.

Values of berth resales should not be our focus, rather the provision of safe and convenient berthing for member boats at the least possible expense. It is notable that with the negotiated reduction in seabed rent and lesser maintenance cost, that our berth outgoings have reduced 32-42% depending on berth size and are substantially less than commercial marinas up and down the coast.

Our Marina Management team continue to excel in their work. David McTaggart and Val Meggs are on hand daily and Barbara has returned part time to help administer the registration of new sub leases, which I am pleased to say have now been distributed to every berth holder. We intend also to relieve pressure in peak times on Val and Barbara by locating them with the central administration and sailing staff in the new building. The existing Marina office will be retained for dredging control and boatyard administration. Reserves are set aside for a refurbishment of the Marina toilets and showers plus the provision of handicapped access and staff amenities. Work will be underway on that project this year.

The long awaited and methodically planned dredging programme is underway. Stage one, at a cost of $100,000, was the excavation of the dredge spoil zone and increase in bund wall height with hydra mulching of the bunds to reduce dust nuisance. Our methodology plan, now approved by the Department of Environment, is based on a slower dredge pump flow that is usually commercially viable. It allows the sediment and dewatering process time to achieve filling the bunded dredge spoil zone with 102,000m3 of wet material which, when dried, will compact to 56,000m3 against a previous capacity of 32,000m3. If we had used a commercial dredging company, not only would they have cost $18-35/m3 but they would have to stop and start whilst the volume of spoil was dewatered. That was also the case in 2002 when the operation had to be ceased without ultimate depths being met in all areas. By purchasing a small dredge which can also manoeuvre between individual berths for maximum efficiency, and by employing our own dredge operating team, our budget shows that we can achieve the entire 102,000m3 for less than $11/m3 including the cost of acquiring the machine, which with proper maintenance will be available for the next dredge programme in the harbour. It is being acquired in a separate entity in order to isolate RQYS Marina Ltd from the operational risk and will hold the Marina Co indemnified. Further the agreement between the two entities provides for the work



M A R I N A C H A I R M A N ’ S R E P O R T 2014

to be done at cost and for regular reporting to and monitoring by the Marina Board of staged costings. This also avoids establishment and re-establishment costs associated with a large commercially operated dredge. The dredging operations will continue for at least 12 months and your co-operation in relocating your vessel temporarily will be sought by our Marina staff but the smaller dredge allows the interruption to be to minimal numbers at any one time.

Finally, it would be remiss of me not to thank my fellow volunteer Board members whose expertise and patience has been fully tested to conclude the completion of the refurbishment and most recently the conclusion of the dredging plan,

which can and will remarkably be achieved within our available funds and budget. Disappointingly, a small group of berth holders have seen fit to cast rocks at them for their efforts but we should all be grateful for their input and determination on behalf of all berth holders and indeed all members. As a clearer understanding, by all members, of the complications of the dredge spoil works and the potential of the re-use of that material is obvious, I hope that the doubters will see fit to apologise for their mis-judgement and ill-founded accusations.

Kevin MillerChairman - RQYS Marina Limited



T R E A S U R E R ’ S R E P O R T 2014

What was the result for the year and how did it differ from last year?

The Marina Company incurred an accounting loss after tax expense of $56,548.This loss is lower than $225,690 in the previous year.

There are several factors giving rise to this reduced book loss. The most significant is the depreciation of the marina structure which was $449,667 last year has reduced to $48,179.This gain was offset in part by higher administration expenses of $115,058 including higher legal expenses of $66,021 and consulting fees of $16,818. Also tax expense moved from a gain last year of $96,724 to an expense of $12,648 in the current year as current year tax losses were not treated as deductible for accounting purposes.

Why did depreciation reduce?

Last year it was decided that the old marina structure should be fully written off in the year 2012/13 as the refurbishment would have been largely completed in that year.

Why did the Marina Company make a loss?

A loss was incurred as there were expenses such as legals and electricity in the second half of the year which was not recovered in the half yearly charges.

What were the more significant items affecting the result, other than depreciation, that varied from last year?

The revenue iTems

Crown Rental Trust ReleaseDuring last year the Marina Company incurred Berth Rental Expenses (see below) arising out of the refurbishment and in consequence the Directors decided to release the surplus to offset this expense. There was no corresponding release in the 2013/14.

Berth Rentals-from Owned berthsThese increased from $62,286 last year to $101,455 in the 2013-14 as in the previous year owned berths were used to house vessels displaced during the marina refurbishment.

Interest IncomeInterest income of $5,131 was $30,565 lower than last year as the loan to New Marina Trust was repaid in November 2012.

The expense iTems

Dredging Preliminary ExpensesThese reduced by $39,138 to $8,590 as the dredging planning was largely completed during the 12-13 year.

Berth Rental ExpenseDuring the refurbishment of the marina, vessels had to be moved from the rows being refurbished into other berths. Many of these were moved into Marina 2. Some were moved into berths in Marina 1 held by berth holders which were rented out and as a consequence those berth holders could not receive the rental income they had previously enjoyed. The expense last year of $147,235 arose as it was decided such berth holders should be compensated by the Marina Company for the foregone rental. Up to the completion of the refurbishment a further $55,038 was incurred and none thereafter.There was no compensation paid to Nominees where vessels were moved into owned berths that had previously been rented out.

Facilities Usage FeeUnder the refurbishment arrangements the Marina Company contributed its cash reserves (from repayment of loans by New Marina Trust and the Squadron) to Marina 1 Trust to partially fund the refurbishment. The berth holders contribute $8.7m and Marina Company contributes its cash reserves of $1.8m making up the total cost of $10.5m.

These contributions by Marina Company (other than the payments for the new lease term for

R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D



T R E A S U R E R ’ S R E P O R T 2014

the owned berths) are payments for the use of facilities Marina 1 Trust owns (the refurbished marina) and are treated as Facilities Payments in Advance in Marina Company books. The Facilities Payments in Advance will be expensed as Facilities Usage Fee over the remaining period to the expiry of the current lease on 31/12/2028.During the 2012/13 financial year $35,085 has been expensed as Facilities Usage Fee and $111,372 was expensed in the 2013/14 year.The Facilities Usage Fee is a tax deductible expense in the Marina Company and does not form part of the amounts to be recovered in the half yearly charges to berth holders. Note: it is a book entry only and is not a cash outlay expense.

Repairs and MaintenanceRepairs and Maintenance costs of $23,443 were $42,836 lower than last year as the result of the marina being refurbished and hence maintenance was not required on the refurbished rows.

Legal ExpensesThese increased by $66,021 due to costs associated with the AGM.

Consulting FeesThese increased by $16,818 due to the accounting advices sought and provided to the AGM.

What were the more significant changes to the Balance Sheet (Statement of Financial Position)?

CashA separate bank account now operates for Marina Company and at year end had a balance of $597,519.Loan to RQYS by Marina Company and Berth HoldersThis loan last year had an amount owing of $613,941. This has now reduced to $223,084 at year. This balance is more than accounted for by credit balances which berth holders choose to leave in their accounts from rent collected on

their berths. The credit balances, which is berth holder’s money and not Marina Company money, at 30/4/2014 was $544,453.

Other Financial Assets-Term DepositThe term deposit of $809,821 at year end is being held to fund future dredging.

Facilities Payments in AdvanceAn explanation of how this arises is included above under Facilities Usage Fee. The balance at year end of $1,707,825 (current $113, 658, non-current $1,594,167).

Dredging TrustThis amount of $810,424 is the amount owing to the Dredging Trust by the Marina Company. It is offset by the amount of the Term Deposit referred to above which is held to fund future dredging.

Amounts Owing to MembersThis amount, which originated from money not spent on repairs and maintenance and saved in the lead up to the refurbishment, was $5,581 at last year end was $2,036 at this year end.

David VirgoRoyal Queensland Yacht Squadron LimitedHonorary Treasurer

R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D


CONTENTS

Director’s Report

Independence Declaration

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Director’s Declaration

Independent Auditor’s Report

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F I N A N C I A L R E P O R TFOR THE YEAR ENDED 30 APRIL 2014




D I R E C T O R ’ S R E P O R TFOR THE YEAR ENDED 30 APRIL 2014


D I R E C T O R ’ S R E P O R T FOR THE YEAR ENDED 30 APRIL 2014




A U D I T O R ’ S I N D E P E N D E N C E D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2014


S TAT E M E N T O F C O M P R E H E N S I V E I N C O M E FOR THE YEAR ENDED 30 APRIL 2014





S TAT E M E N T O F F I N A N C I A L P O S I T I O NFOR THE YEAR ENDED 30 APRIL 2014



S TAT E M E N T O F C H A N G E S I N E Q U I T Y FOR THE YEAR ENDED 30 APRIL 2014





S TAT E M E N T O F C A S H F L O W SFOR THE YEAR ENDED 30 APRIL 2014



N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2014




N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2014



D I R E C T O R ’ S D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2014

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Royal Queensland Yacht Squadron LimitedSponsors 2013 / 2014

We gratefully acknowledge the generous support and assistance provided by our sponsors.

Major SponsorsMotorline BMW

Lion NathanMorgans CIMB

Corporate SponsorsAlarm Industries

Angove Family Wines

Black Auto

Bundaberg Rum

Classic Hits 4KQ

Club Marine

Club Super

Coca Cola

Envy Scooters

Hardy Brothers Jewellers / Wallace Bishop Jewellers

Jetty Specialists

Keppel Bay Marina

Marine Auctions

Maui Jim

Robin Spencer Architects

SeAirLand

Telstra Shop - Wynnum

Trymax Marine

Westpac


Royal Queensland Yacht Squadron LimitedCommodores

1885 - 1887 Sir Thomas McIlwraith, K.C.M.G, M.L.A.1887 - 1890 The Hon. E B Forrest, M.L.C., M.L.A.1890 - 1892 G Markwell1892 - 1893 R P Earle1893 - 1984 R H Lawson1894 - 1895 J G Vidgen1895 - 1897 J Clark1897 - 1898 W J Weatherill1898 - 1900 W A Douglass1900 - 1902 J Clark1902 - 1903 W A Douglas1903 - 1919 T Welsby1919 - 1921 W A Douglas1921 - 1922 D MacTaggart1922 - 1923 J Clark1923 - 1925 J Love1925 - 1927 W A Douglas1927 - 1928 A L M Wilson1928 - 1929 V Campbell1929 - 1931 T L Jones1931 - 1933 Dr C Croll1933 - 1935 E Sparkes1935 - 1936 T L Jones1936 - 1938 A S Huybers1938 - 1939 J R Figgis1939 - 1946 F A Bruce1946 - 1948 J Kelly1948 - 1951 S N Gow1951 - 1953 J H Robinson

1953 - 1955 T M Foggitt, D.S.C.1955 - 1957 S N Wood1957 - 1958 J H Robinson, M.B.E.1958 - 1961 W E Whatmore1961 - 1964 G Cavill1964 - 1966 E T Early1966 - 1968 N G Lockyer1968 - 1971 K G N Kibble1971 - 1973 J G M Tyquin1973 - 1976 J Hattrick1976 - 1979 D Bowly1979 - 1981 N S Girdis, C.B.E.1981 - 1982 A J Love1982 - 1984 W J Thompson1984 - 1986 J E Harrison, A.M.1986 - 1988 W Bishop1988 - 1990 G J Sneesby1990 - 1992 R E Crooke, O.A.M.1992 - 1994 J A Ferguson1994 - 1996 B J Phillips1996 - 1998 S H R Morris1998 - 2000 R H Seymour2000 - 2002 D R Land2002 - 2004 J E Miall2004 - 2006 W G Kirby2006 - 2008 K A Miller2008 - 2009 K J Anderson2009 - 2011 C R McCart2011 - 2014 G D Clarke2014 - 2014 K A Miller

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