th annual report · understanding by members of the financial affairs of the squadron. the report...

Year Ended 30th April 2019

ANNUAL REPORT134th

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.

PATRONHis Excellency the Honourable Paul de Jersey AC, Governor of Queensland

COMMODOREMark Gallagher

VICE COMMODOREBarry Cuneo

REAR COMMODOREDavid Redfern

HONORARY TREASURERStephen Best

HONORARY MEASURERBill Wright

GENERAL MANAGERShawn Ket

GENERAL COMMITTEEStephen Best, Philippa Fenwick, Rod Johannessen, Fraser Spencer, Curtis Skinner, John Warlow

FINANCE, MARKETING &DEVELOPMENT COMMITTEEStephen Best (Honorary Treasurer & Chairman) Alexander Crooke, Peter Crowley, Andrew Gibbs, Westie McMillan

SAILING COMMITTEEJohn Warlow (Chairman), Louise Davis, Chris Morgan, Noel Paterson, Helen Warneke

POWERBOAT COMMITTEEPhilippa Fenwick (Chairperson), Glen Battershill, Peter Hulme, Chris Land, Simon McGuire

WORKS COMMITTEEFraser Spencer (Chairman)Geoff Stanhope, Rob Steele, Peter Watkins, Richard Wendt

HOUSE & ENTERTAINMENT COMMITTEE Rod Johannessen (Chairman),Todd Anderson, Trish Brewer, Stewart Cumming, Jan Ralph

MEMBERSHIP COMMITTEECurtis Skinner (Chairman), Daniel Alcock, Michael Moore, Grant Somerville, Cameron Whitford

Front Cover: VXOne Championship RacingOpposite page: Raceboards

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

ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITYABN 25 053 989 272


C O M M O D O R E ’ S A N N U A L R E P O R T 2019I am pleased to report to members that at the end of the Squadron’s 18/19 Financial Year all areas of the Squadron are in good shape. This has been achieved through:

• A continued increase in participation by members across all areas of the Squadron, especially in sailing with exceptional fleet growth in the VXOne and Finn Class. The development of new events such as the Lendlease Brisbane to Hamilton Island Yacht Race offers an alternative for deep draft vessels to the Club Marine Brisbane to Keppel Yacht Race.

• The 2018 Etchells Worlds saw the Squadron showcased to a ninety-four boat fleet that included the cream of World sailors. The positive feedback on the Squadron, its facilities, and friendliness of members from competitors and officials was universal.

• Improvements in our business operations and corporate governance which has seen the Squadron’s revenue grow by some $5.3m to $13.5m, while adding 1000 new members over the past four years.

• Leveraging enhanced member services off our business operations and successful corporate and function activities.

• Embracing the emerging sharing economy through:

• Sail on Our Boats • Our Major Sponsor, Yachtshare • Day Pass / Sail Pass point of entry• Strategic Planning underpinned by: • A ‘three horizon’ strategic planning process

• A Capital Expenditure Plan • A dynamic and forward-looking Risk

Management Plan • Due diligence on all major projects• A committed and innovative management team

I am pleased to report that Squadron membership sustainability initiatives continue to be successful, and a simple measure of this success is the growth in our junior members from 60 in 2014 to 329 in 2019 meaning that the Squadron has the membership growth and demographics to ensure its longevity. Total membership as at 30 April 2019 was 4,506, with 79% of these members belonging to on-water

categories. There are also strong trends in social and crew membership categories transitioning to full and other on water membership categories. Full membership has grown again this year.

Squadron sailing activities in the past year have continued to grow, and on-water participation remains strong especially in our Academy and in other Junior programs.

In considering our commitment to the support of sailing at all levels, particularly among youth, it is important to note that the John Harrison Olympic Support Foundation is now fully subscribed. This has allowed the Foundation to distribute $135,000 to athletes this year. In the lead-in to the 2020 Olympics there have been notable performances from Squadron sailors: Jake Lilley, Mara Stransky, Tom Needham and Annie Eastgate.

I am also pleased to report that $22,000 in donations to the Wyuna Syndicate via voluntary donations with annual subscriptions were received. The Squadron encourages our members to consider donating to the several Squadron sponsored Australian Sports Foundation funding initiatives.

As a not-for-profit sporting organisation, RQYS’s primary purpose is providing the necessary facilities and services that allow our members to participate in their ‘sport’ – all manifestations of yachting and boating. Although seemingly simple in concept, facilitating the sport is a complex mission and involves managing a balance between short and long-term priorities across multiple foci including member services and facilities, sustainability and responsible fiscal management.

This year we will return a Net Profit of $50,601. This result may seem modest but is in fact a good result considering the not-for-profit status of the Squadron and the purposeful investment made in our athletes, members and infrastructure. Additionally, Earnings Before Interest, Tax and Amortisation (EBITDA) gives a clearer picture of the financial performance of the Squadron and Entities and of our overall trading performance generally. This year our EBITDA was in the order of $2 million. EBITDA is essentially our profit before the deduction of non-cash depreciation charges for previously acquired facilities.

ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITY

ABN 25 053 989 272


C O M M O D O R E ’ S A N N U A L R E P O R T 2019Overall, Marina trading is positive based on continuing recoveries in Marina 1 and very efficient operations in Marina 2, Slipway and Rentals in 2018/19. To cater for the growing number of multihulls seeking to use Squadron slipping facilities, and beam limitations with the existing Travelift, the Squadron has introduced into service a Roodberg 47 tonne lifter to cater for multihulls and wide beam vessels. To date the bookings and lifts on the Roodberg have exceeded expectations.

Club facility usage by members and visitors continues to increase and our Conference, Event and Function business has a loyal group of regular clients; most weekdays there is a conference or meeting being held at the Squadron. Seven-day trading and breakfast to dinner service periods now offer members access to food and beverage at all times throughout the week and weekend and is being well utilised. The Harbour View Restaurant has recently introduced a new contemporary menu guided by our new Chef John and the improvement in quality and menu diversity is already evident.Strategically the Squadron is well placed with healthy relationships with the State Government where we have provided subject matter and expertise on Marina Development and Management. These Government relationships have led to positive assistance and advice to the Squadron on a range of Marina and Reclamation matters.

In 2019/20 the Squadron will focus on the delivery of services to members, families and their guests across all business areas.

I want to thank and acknowledge the dedication and contribution of the Flag Officers, Honorary Treasurer, General Committee, Committees, Volunteers and Staff who have been instrumental in the Squadron’s success in 2018/19.

In closing my report, I thank the Squadron and its members who have afforded me the privilege of being your Commodore for the past two years.

See you down the Bay

Mark Gallagher Commodore


ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITYABN 25 053 989 272

H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019As was the case last year, the accounts are presented short form to facilitate a better understanding by members of the financial affairs of the Squadron. The report complying with the Corporations Law appears later in this Annual Report.

Consistent with 2018, the consolidated financial statements of the Squadron and Controlled Entities (Squadron) include for reporting purposes the results of RQYS Marina Ltd and Royal Queensland Yacht Squadron John Harrison Olympic Support Foundation (JHOSF). It is important to note that the common or legal definition of “control” differs from the accounting definition contained within Australian Accounting Standard AASB 10. The accounting definition is broader in scope. Each entity within the consolidated group of companies is a separate legal entity. The consolidated group is not a legal entity.

The amount of income tax payable is determined for each legal entity. RQYS Marina Limited is assessed as being tax paying. With the exception of JHOSF, current tax rulings are in place recognising the other entities as non-tax paying. The tax status of JHOSF is dependent on its compliance with the Australian Tax Office Private Ancillary Fund guidelines under which it was established.

Near the end of the year, two new Trusts, RQYS Operations and RQYS Assets were established to hold, where feasible, the commercial operations and commercial assets of the Squadron. Income from these Trusts are distributed to the Squadron for the purpose of advancing sporting activities.

It is also important to note that as a Not for Profit organisation accounting standard AASB 1004 applies to the Squadron, with the exception of RQYS Marina Ltd, as such donations and grants are required to be recognised as income in the year they are received, even if the donation relates to an item of capital expenditure. The impact of this is for donations and grants to inflate profit/income in the year received and then subsequently to inflate depreciation in future years. Significant changes to relevant revenue and lease accounting standards will apply from the 2019/20 financial year. The impact of these changes have been assessed but not finalised.

The lease standard will result in the seabed lease covering the marina’s being capitalised as an asset and a liability, and a portion of the annual lease expense being recorded as interest expense.

The consolidated Profit After Tax (PAT) is $51k on revenue of $13.1 million. The primary variations between the 2017/18 consolidated PAT of $404k and the current year result, are lower government grant funding of $186k versus $213k, and the absence of a significant donation to JHOSF ($280k in 2018). The key components of the result based on management reports are as follows;

• Sporting operations incurred a loss of $431k before recognition of general sponsorships and government grants. Sailing Academy incurred a loss of $77k, Club Sailing a loss of $340k and Major Regattas a loss of $14k. Overall the operating expenditure on sporting operations was $998k compared to operating income of $567k. Sponsorships income of $61k and the government grants income of $186k for the Amenities Building and Windsurfing Precinct reduced the loss to $184k.

• The financial cornerstone of the Squadron is its substantial freehold property assets and facilities. Property, Fuel and Rentals plus Slipping generated a profit of $1,013k. A slipway trailer and tractor capable of providing incremental slipway capacity for vessels with a beam exceeding 5 metres, was acquired and started operation in February 2019. The new equipment was financed through equipment leases.

• Membership subscription income increased by 3.7%.

• The Marina’s excluding Slipping generated a profit of $122k. As foreshadowed at the 2016 AGM, the action of removing the subsidisation of Marina 1 sub-sub-lease berth charges from income derived from owned berths, berth rental commissions and other miscellaneous income continued. This action is being phased in over three years and follows on from the matters clarified by the legal judgement in Jensen &


ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES

ABN 25 053 989 272

H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019

Ors vs RQYS & Ors. Of note in the financial year is a $335k cost value transfer of 19 marina berths from RQYS Marina Ltd to the newly established RQYS Assets Trust. The cost base of the berths transferred is recognised as an expense in RQYS Marina Ltd financial statements and offset by income in RQYS Assets Trust, hence netting off in these consolidated financial statements. The last remaining significant asset in RQYS Marina Ltd is the travel lift which will be transferred on completion of a refurbishment due in the next few years.

• The other contributors to the profit result are Member Services, Utilities and Administration $785k loss, Bar, Café, Restaurant and Events $123k profit, Grounds $315k loss, Canaipa $115k loss, Harbour Dredging Trust profit $53k, Motel $171k profit, and JHOSF $32k loss.

Earnings before interest and depreciation (EBITDA) was $2.15 million. After adjusting for non-cash revenue and expenses Operating Cashflow for the

financial year is $1.0m, reflecting lower income from grants and donations, and the completion of expenditure on dredging.

The Squadron’s strong financial position is underwritten by freehold property assets and growing membership numbers and participation.

The overall debt level increased with the addition of the equipment lease for the slipway trailer and tractor. Loans are now separated into current and non-current portions, reflecting the scheduled repayment of the Motel Loan $2.0m over 5 years from 2019, and the five year equipment lease repayment.

The outlook for 2019/20 is for a small operating profit.

Honorary Treasurer’s Short Form Financial report continued on next page

8 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

ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272


Year Ended 30 April 2019

Short Form Financial Report (Unaudited)

Revenues and costs

2019 2018

Total revenues 13,124,766 13,183,119

Total Costs 13,074,165 12,778,831

Profit before Depreciation, Interest and Tax 2,147,812 2,428,754

Depreciation 1,831,293 1,796,112

Finance Costs 265,918 228,354

Income tax 0 0

Profit/(Loss) for the year 50,601 404,288

Assets and liabilities

Assets

Cash 599,796 813,589

Debtors 2,218,211 2,097,172

Inventories 271,637 171,112

Prepaid expenses and other current assets 625,317 275,615

Income Tax Accounts 33,546 60,512

Property plant and equipment at net book value

Land and improvements to land

Manly 3,288,247 3,296,819

Canaipa 399,599 400,990

Buildings

New Clubhouse 2,078,318 2,121,622

Cavill Building 81,430 135,000

Marquee 515,189 534,322

Motel 2,655,239 2,796,774

Canaipa 104,124 108,839

Olympic Foundation 558,895 564,655

Marina Sports Amenities 1,244,178 0

Other 92,258 71,885

Marinas 16,830,390 17,631,495

Equipment and other assets 2,930,666 3,380,135

Total assets 34,527,040 34,460,536


ABN 25 053 989 272



2019 2018

Liabilities and advance payments

Trade and other payables 2,411,127 2,074,136

Dredging fees in advance 331,317 263,105

Borrowings 3,197,071 2,864,868

Employee benefits provisions 388,249 533,258

Payments received in advance- marina rentals and membership fees 18,459,325 19,020,595

Liabilities and advance payments 24,787,089 24,755,962

Retained profits and reserves 9,739,951 9,704,574

Capital Expenditure (over $100,000)

Slipway Trailer and Tractor 329,594 0

Buildings - Sports Amenities Building 611,524 738,229

Vessels 135,643 246,457

RQYS JOHN HARRISON OLYMPIC SUPPORT

FOUNDATION and ISOSSF 2019 2018 2017

Payments in support of Sailors 135,000 81,575 20,428

Stephen BestHonorary Treasurer



S A I L I N G C O M M I T T E E R E P O R T 2019Participation is continuing to grow across the board, seasons entries are up 11% from last season and the number of sailors choosing to compete casually has increased. This comes in spite of a drop in Etchells seasons entries post the World Championships.

The Etchells Worlds were a resounding success and showcased our facilities and management across the world and most certainly will result in further international events held at our club..

New developing fleets include the Finns, VXOnes and Sabres and we are seeing an encouraging trend in viable one design fleets seeking quality club level competition for experienced competitors. The Inaugural VXOne International Cup (which may yet turn into their first worlds) will be held at RQYS in 2020.

The Academy and RQYouthSquad programs are continuing to perform well. This year we have seen more people participating, but an increasing trend from people to sail less regularly, and more occasionally. We have increasingly popular Off the Beach fleets like Windsurfing, Finns, Moths, and the VX’s, who are competing in regattas but not racing in regular club racing.

Club Junior members involved in Squad training now exceeds 140, with active participation in Optimist from Green Fleet to Open Fleet of over 60 sailors. The remainder are coming from strong fleets of sailors in the BicTechno, Laser 4.7, Laser Radial, Flying 11 and 29er classes.

Squadron results have continued to excel over the last 12 months, with great results across Olympic hopefuls, club sailors, and Junior and Youth. Our National Champions include Hamish Swain (Techno Windsurfing), Kristen Wadley (Laser 4.7), Luke Rogers (Flying 11 Junior), Annie Eastgate (US National Laser Radial), Mara Stransky (Australian Laser Radial), and senior sailors like Allan Moffat, Ben and Josh Franklin (VXOne Australian Champions) and Julien Savina (Windsurfing Australian Champion) to name just a few.

This year our Olympic aspirant sailors have represented us with distinction. In particular the

recent performances from Tom Needham and Mara Stransky, both graduates of our RQYouthSquad program, have demonstrated our Olympic hopes into the future, with Tom succeeding in cracking the top 25 in his first season in the 49er, and Mara qualifying herself for the Olympic Test event in Enoshima Japan later this year.

John Harrison Olympic Support Fund has provided $135,000 in funding to our Olympic athletes recipients in the last 12 months including, Jake Lilley, Mara and Tom. Our Youth athletes also received over $40,000 in funding through our Wyuna Interstate and Overseas Support Fund which has been generously boosted through member donations and is providing a huge leg up to our aspiring youth athletes.

Our Keel Boat divisions have also been seeing the benefits of running their own keel boat committee resulting in much better coordination for events on and off the water. Record entries were seen for Goodwill Cup and Myora Cup this season as well as a very strong showing for the upcoming club winter series and regattas. With more emphasis on invitation events the fleet sizes have improved substantially.

Our thanks once again go out to our multitude of Volunteers. It is humbling to see club members continually coming out of the woodwork to be involved in all manner of support activities on and off the water. There continues to be a great showing of community at the Squadron.

And last but not least thank you to our entire Sailing staff who are key to delivering world quality services that we enjoy at RQYS. John WarlowChairman - Sailing Committee



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P O W E R B O AT C O M M I T T E E R E P O R T 2019 The Powerboat Committee includes the Sail and Power Cruising groups which operate independently and have delegates that report their activities at our meetings throughout the year. This has allowed the sharing of knowledge and participation by all groups represented on the Committee.

We all meet up at the end of the season for our annual ‘Cruising and Navigation Presentation Dinner’ where we celebrate our achievements for the year and award our perpetual and special trophies.

NAVIGATIONThe Powerboat Committee is responsible for organising and running three competitive Navigation events throughout the season. We cater for both GPS and Traditional navigation methods.• Goodwill Cup – November 2018

This is the premier event in the Log Eventing calendar, a shared event with Southport Yacht Club. Unfortunately for us SYC won the event this year, but planning has already started to ensure the Goodwill Trophy is returned home to Manly next season.

• Myora Cup – March 2019Numbers were down on previous years, however many boats attended simply for the overnight event at Canaipa, making it a successful weekend.

• Past Commodores’ Cup – May 2019With a morning start everyone was back at the Squadron for lunch and presentations. This is a good event to introduce the family to the sport of navigation eventing.

The inaugural Night Raid Navigation Event introduced members to the experience of navigating at night. Whilst the first was in August 2018 it was decided to bring it earlier in the year before those that go north for the winter could participate. We have now set it as an annual event in June. The last two have both been to Myora where this year the event attracted comments from others in the anchorage, ‘What’s happening, we’re being invaded by RQYS boats’. 13 boats arrived at three minute intervals, just what a night raid is.

POWER CRUSING by John HigginsThis season took us to many and varied destinations from Bribie Island at Easter for a fun filled weekend of challenges and games to Southport Yacht Club for the October long weekend to watch the footy grand finals. We joined up with the Sail Cruising group for Xmas in July and the Australia Day weekend at Canaipa holding the compulsory intergroup games and cricket match. Other destinations have included St Helena, Myora, Karragarra and Macleay. We held our Christmas function at the RQ beach where a delicious Pigrumkin (whole pig stuffed with a rump) was roasted on a spit.

SAIL CRUISING by Rosalie DolanRQYS Sail Cruising Group currently has 106 yachts (and growing) on its membership register. The main focus of the group during the past year is to continue to share cruising knowledge, sail in company and encourage membership.

Over the last year there have been monthly cruises to anchorages within Moreton Bay. These have been themed with a knowledge sharing aspect or a social activity. The Friday evening before the cruise has provided the opportunity to share cruising knowledge including briefing new cruisers on what they may expect on the Bay during the forthcoming cruise.

The group has enjoyed cruises further afield, such as this year’s cruise to Lord Howe Island. Each year also sees either a formal or informal cruise north by members of the group. A formal cruise to Keppel Bay and the Whitsunday’s is planned for this coming August and is open to both Power and Sail Cruising Groups. Shared events include Australia Day, Christmas in July and the Cruising and Navigation Presentation Night

Our intention for next year is to continue to grow our membership and include some one day family events.

Thank you to my committee, our many volunteers and members who support our events and to our sponsors who donate. Whether it’s cruising in company or competitive navigation, there is something for everyone!

Philippa FenwickChairperson – Powerboat Committee


ABN 25 053 989 272


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 2019Membership of the Royal Queensland Yacht Squadron has continued an upward trend and in the last five years the Club has grown from 3,000 to over 4,000 members. At the heart of any club is its members and the Squadron is committed to giving value for membership to each member in a variety of ways. This remains the primary focus of the Membership Committee and is reflected in both member retention rates and new member numbers.

Upgrading from crew to full membership has been occurring at a steady rate and continues to be promoted at every opportunity. The new membership nights welcoming incoming members have grown in importance and the venue change to the deck has transformed these events into special social occasions.

Over the past year there has been significant growth in the engagement between sponsors and members and this has proven to be a positive relationship as it reaps additional benefits for both parties.

The Membership Committee has worked with the marketing team to ensure the club is utilising all possible avenues to promote the Squadron. For a second year running Royal Queensland Yacht Squadron has been involved with the Sanctuary Cove Boat Show. This presence at boating events provides a welcoming base for current members to visit, as well as, promoting the Squadron and all that it has to offer. This has been successful with several people taking up new membership.

To align with current trends Mainsheet is sent out on online as well now, to maximise accessibility for all members. Live streaming events and using social media has enabled the club to showcase a range of on-water events to a much wider audience than ever before possible.

Membership value is multi-faceted because the camaraderie gained amongst members is matched with world class facilities, including the marina complex and rigging lawns, restaurant and function areas, and Canaipa as an additional recreational space.

Royal Queensland Yacht Squadron is a premier club and the main function of the Membership Committee is to offer members a range of experiences which cater for all interests, meet new members and take recommendations to the General Committee. As Chairman of the Membership Committee I would like to personally thank my other Committee members; Michael Moore, Cameron Whitford, Daniel Alcock and Grant Somerville for their commitment over the past year and their input into decisions and initiatives. I would like to acknowledge Alicia Soszynski, our Membership Administrator, who should be commended for her tireless efforts this year, facilitating the Committee’s work.

Curtis SkinnerChairman - 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 2019The past year has been significant for the hospitality team with continued growth in activity in bar, café, restaurant and functions, and in the range of product being offered to members. The past year has seen a number of changes in the hospitality function with a focus on improving the quality and consistency of the food and beverage products for our members. There have been a number of initiatives across bar, café, restaurant and functions to support the goal of meeting the needs of our ever growing and diverse membership.

The number of meals and food items served provides an idea of the scale of the hospitality operation. In a typical month the following items are served in the Harbour View Restaurant 500 entrees, 1,100 main meals and 200 deserts. In the café there are 800 main meals, 3,000 all day dining meals and 1,500 cabinet items (rolls etc).

Some staff changes throughout the year have provided an opportunity for Hospitality Manager, Beth Kucks to put in place a team of long-term hospitality industry professionals. A training program has also been put in place for key staff. This training includes nationally recognised wine appreciation courses to provide wait staff with a better understanding of the wines that are available for members and guests.

Earlier this year the Food and Wine Club was launched. The Food and Wine club provides for pre-sale of tickets to events, discounted wine and exclusive offers direct from the wine makers. Participation in the Food and Wine Club is included in your membership fee and can be organised by emailing [email protected]

We have built upon the success of the inaugural Food and Wine dinner last year, by holding a further four wine dinners featuring wines from Taltarni, Hentley Farm, Peter Lehmann and Rymill. Food and Wine dinners are an example of a smaller group event and tailored approach to meeting the needs of our members.

The first Children’s Disco was held during the year. These events provide for a whole of family opportunity with parents dining in the restaurant while their children attend the Disco.

A recent initiative to assist members and class associations is the development of a comprehensive range of function packages to improve the consistency of our function product. These include a new initiative in the form of vessel catering. Members are now able to order food and beverages for delivery to your vessel to make that ‘day on the bay’ easier to organise.

There were several major events in the year. A stand out example was catering for the Etchell World Championships which was a challenge met with enthusiasm by the hospitality team. Over the 18th – 27th Oct period the Squadron served over 4,500 meals and 1,200 litres of tap beer. The success of the hospitality team in meeting the needs of both participants in the Etchell Worlds and RQYS members helps support our goal of being a preferred venue for regattas.

Two long standing members of the House and Entertainment Committee will not be continuing in 2019/2020. Jan Ralph has been a Committee member since 2016 and we appreciate Jan’s particular contribution as an elf for the Children’s Christmas party. Todd Andersen is stepping down to participate on Sailing Committee. Todd has been a Committee member for three years and a highlight of Todd’s time on the Committee includes proposing the Children’s Disco.

To keep up to date with what is happening at the RQYS social scene connect with us at Royal Queensland Yacht Squadron – Social on Facebook.

Rod JohannessenChairman - House & Entertainment Committee


W O R K S C O M M I T T E E R E P O R T 2019


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Major works for the year were the satisfactory completion of the new Marine Sports Amenity building. The building has been well received and now sits happily as an end stop to rigging lawn two and as a foil to the marine maintenance yard beyond.

Other projects in various stages of completion :• storage/dingy container sheds (in this years

budget)• multihull dry storage facility (commenced) • Cavill building rewaterproofing tenders received

and work commenced• marina piles lifecycle researched• marina headstocks investigated• Canipa ongoing maintenance • timber flag pole relocated

I will be stepping down this year as Works Committee chair and Curtis Skinner will move to this position from Membership. I wish Curtis well in this role and would to thank my fellow committee members for their continued and valued imput into the Squadron’s infrastructure.

Thank you: Richard Wendt, Peter Watkins, Geoff Stanhope and Rob Steele

Fraser Spencer Chairman - Works Committee

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Aerial View of RQYS Canaipa


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CONTENTS

Directors’ Report

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

Statement of Profit or Loss and Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Directors’ Declaration

Independent Audit Report

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F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019



D I R E C T O R S ’ R E P O R T 2019

Royal Queensland Yacht Squadron Limited & its Controlled Entities

ABN: 25 053 989 272

Directors' Report30 April 2019

The directors present their report, together with the financial statements of the Group, being the Company and itscontrolled entities, for the financial year ended 30 April 2019.

1. General information

Information on directors

The names of each person who has been a director during the year and to the date of this report are:

Mark Drew Gallagher

Qualifications Grad.Dip. Law; Bach. Prof Studies; Dip. Fraud Investigation

Experience Member of General Committee for 6 years and Flag Officer for 6 years

Special responsibilities Commodore

Captain Barry EdwardCuneo

Qualifications Master Class 1 (Foreign Going) FNI

Experience Membership of General Committee for 5 years and Flag Officer for 5 years

Special responsibilities Vice Commodore

David Thomas Redfern

Experience Appointed as a Director 18 July 2017

Special responsibilities Rear Commodore

Stephen Graham Best

Qualifications B. Bus, Grad Dip Management, Diploma Company Directorship, FIPA, FFA,GAICD

Experience Member of General Committee for 3 years

Special responsibilities Honorary Treasurer, Chairman of Finance, Marketing & DevelopmentCommittee

Fraser Adrian Spencer

Qualifications B.Des. ST., B Arch, F.R.A.I.A


Special responsibilities Chairman of Works Committee

Curtis David Skinner

Qualifications B. Eng., B. Com.


Special responsibilities Chairman of Membership Committee

John William Warlow

Qualifications Advanced Diploma in Project Management, Certificate 4 in Building andConstruction, Licensed Real Estate Agent


Special responsibilities Chairman of Sailing Committee

1



ABN 25 053 989 272

D I R E C T O R S ’ R E P O R T 2019

Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272

Directors' Report 30 April 2019



2

Philippa Anne Stafford Fenwick

Qualifications Cert. 4 in Maritime Operations, MICB Experience Member of General Committee for 4 years Special responsibilities Chairperson of House and Entertainment Committee (May - July 2018)

Chairperson of Powerboat Committee (August 2018 - July 2019)

Michael Charles Aitkinson Qualifications Cert IV Mech Experience Member of General Committee for 3 years - Resigned as director in July 2018 Special responsibilities Chairman of Powerboat Committee (May - July 2018)

Rod Johannessen Qualifications B. Bus, M. Bus Agribusiness, MAICD Experience Member of General Committee for 9 months - Appointed as director on 26 July 2018

Chairperson of House and Entertainment Committee (July 2018)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities

The principal activities of the Group during the financial year were to encourage, promote and further the sport of yachting, sailing, racing and to provide other services to members, acting as a marina and boat maintenance yard operator and landlord of a motel property .

No significant change in the nature of these activities occurred during the year.

Short & long term objectives

The Group's short and long term objectives are to:

Encourage people to the sport and pastime of sailing and boating, to provide marine sporting and recreational activities for members, foster members to achieve in competitive sailing, to provide a high standard of marina berths and facilities for members and to maintain the financial health of the entity.

Strategy for achieving the objectives

To achieve these objectives, the Group has adopted a strategic plan, annual business plan and planning by Directors and the Committees to support goals and actions of ongoing achievement.

Shawn KetQualifications MTMgt,GradDipExL,BA,DipT,FAIM,MAICDExperience CompanySecretaryfor2years GeneralManagerfor4yearsSpecialresponsibilities CompanySecretary GeneralManager





2

Philippa Anne Stafford Fenwick

Qualifications Cert. 4 in Maritime Operations, MICB Experience Member of General Committee for 4 years Special responsibilities Chairperson of House and Entertainment Committee (May - July 2018)

Chairperson of Powerboat Committee (August 2018 - July 2019)

Michael Charles Aitkinson Qualifications Cert IV Mech Experience Member of General Committee for 3 years - Resigned as director in July 2018 Special responsibilities Chairman of Powerboat Committee (May - July 2018)

Rod Johannessen Qualifications B. Bus, M. Bus Agribusiness, MAICD Experience Member of General Committee for 9 months - Appointed as director on 26 July 2018

Chairperson of House and Entertainment Committee (July 2018)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.


The principal activities of the Group during the financial year were to encourage, promote and further the sport of yachting, sailing, racing and to provide other services to members, acting as a marina and boat maintenance yard operator and landlord of a motel property .

No significant change in the nature of these activities occurred during the year.

Short & long term objectives

The Group's short and long term objectives are to:

Encourage people to the sport and pastime of sailing and boating, to provide marine sporting and recreational activities for members, foster members to achieve in competitive sailing, to provide a high standard of marina berths and facilities for members and to maintain the financial health of the entity.

Strategy for achieving the objectives

To achieve these objectives, the Group has adopted a strategic plan, annual business plan and planning by Directors and the Committees to support goals and actions of ongoing achievement.



D I R E C T O R S ’ R E P O R T FOR THE YEAR ENDED 30 APRIL 2019


ABN: 25 053 989 272



Members' guarantee

Royal Queensland Yacht Squadron is a Company limited by guarantee. In the event of, and for the purpose of windingup of the Company, the amount capable of being called up from each member and any person or association whoceased to be a member in the year prior to the winding up, is limited to $100 for members that are full members, $80 inthe case of country members and members who are residing outside of Queensland, life members, senior members,social members, crew members, young adult members and honorary members and $60 in respect of junior members.In the case of fully paid members, the payment of the fully paid membership fee discharges them from any furtherliability as members of the company.

2. Other items

Future developments and results

Likely developments in the operations of the Group and the expected results of those operations in future financialyears have not been included in this report as the inclusion of such information is likely to result in unreasonableprejudice to the Group.

Meetings of directors

During the financial year, 11 meetings of directors (including committees of directors) were held. Attendances by eachdirector during the year were as follows:

Directors'Meetings

Numbereligible to

attendNumberattended

Fraser AdrianSpencer

11 8

David ThomasRedfern

11 9

Curtis David Skinner 11 10

Mark Drew Gallagher 11 10

John William Warlow 11 11

Captain BarryEdward Cuneo

11 9

Philippa AnneStafford Fenwick

11 10

Michael CharlesAitkinson

2 2

Stephen GrahamBest

11 11

Rod Johannessen 9 7

3


ABN: 25 053 989 272


Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for theyear ended 30 April 2019 has been received and can be found on page 5 of the financial report.

Signed in accordance with a resolution of the Board of Directors:

Director: ............................................................... Director: ................................................................

Dated this .............................. day of .............................. 2019

4

Dated this 20th day of June 2019

21


ABN 25 053 989 272


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 2019

Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for the acts or omissions of financial services licensees.

The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.

Crowe Horwath BrisbaneABN79981227862MemberCroweHorwathInternational

AuditandAssuranceServices

Level16120EdwardStreetBrisbaneQLD4000AustraliaTel+61732333555Fax+61732333567www.crowehorwath.com.au

Auditor’s Independence Declaration

AsauditorofRoyalQueenslandYachtSquadronLimitedanditscontrolledentitiesfortheyearended30April2019, Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:

i. nocontraventionsoftheauditorindependencerequirementsassetoutintheCorporations Act 2001 inrelationtotheaudit;and

ii. nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.

ThisdeclarationisinrespectofRoyalQueenslandYachtSquadronLimited anditscontrolledentities duringtheyear.

Crowe Horwath Brisbane

John Zabala (FCA)SeniorPartner

Location:BrisbaneDate: 20 June2019

5



Crowe Horwath BrisbaneABN79981227862MemberCroweHorwathInternational


Level16120EdwardStreetBrisbaneQLD4000AustraliaTel+61732333555Fax+61732333567www.crowehorwath.com.au


AsauditorofRoyalQueenslandYachtSquadronLimitedanditscontrolledentitiesfortheyearended30April2019, Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:



ThisdeclarationisinrespectofRoyalQueenslandYachtSquadronLimited anditscontrolledentities duringtheyear.


John Zabala (FCA)SeniorPartner

Location:BrisbaneDate: 20 June2019

5



S TAT E M E N T O F P R O F I T O R L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M EFOR THE YEAR ENDED 30 APRIL 2019

The accompanying notes form part of these financial statements


ABN: 25 053 989 272

Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 30 April 2019

Note

2019

$

2018

$

Member subscriptions 1,654,878 1,596,152

Bar, café, restaurant and functions 3,620,696 3,394,408

Rental income 399,407 391,948

Fuel income 1,603,426 1,299,801

Sporting income 1,043,212 1,197,956

Marina operations income 3,020,247 3,509,801

Miscellaneous trade and slipping income 1,274,038 1,180,417

Other income 472,020 327,303

Donation income 36,842 285,333

Total revenue 13,124,766 13,183,119

Cost of goods sold (2,677,649) (2,274,835)

Employee benefits expense (4,741,052) (4,656,710)

Depreciation expense (1,831,293) (1,796,112)

Insurance expense (188,316) (222,930)

Occupancy expenses (1,213,169) (997,917)

Other expenses 5 (1,303,076) (1,798,519)

Professional & Association expenses (291,911) (337,759)

Repairs and maintenance (561,781) (465,695)

Finance costs (265,918) (228,354)

Total expenses (13,074,165) (12,778,831)

Profit before income tax 50,601 404,288

Income tax expense 4 - -

Profit from continuing operations 50,601 404,288

Profit for the year 50,601 404,288

Other comprehensive income, net ofincome tax

Total comprehensive income for theyear 50,601 404,288

Profit attributable to:

Members of the parent entity 50,601 404,288

Total comprehensive income attributableto:

Members of the parent entity 50,601 404,288

The accompanying notes form part of these financial statements.6


ABN 25 053 989 272


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 2019



ABN: 25 053 989 272

Statement of Financial PositionAs at 30 April 2019

Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 6 599,796 813,450

Trade and other receivables 7 2,003,667 1,632,210

Inventories 271,637 171,112

Current tax receivable 17 - 25,243

Other assets 10 625,317 289,437

TOTAL CURRENT ASSETS 3,500,417 2,931,452

NON-CURRENT ASSETS

Trade and other receivables 7 214,544 451,140

Property, plant and equipment 8 28,123,294 28,245,762

Investment properties 9 2,655,239 2,796,774

Deferred tax assets 17 33,546 35,262

TOTAL NON-CURRENT ASSETS 31,026,623 31,528,938

TOTAL ASSETS 34,527,040 34,460,390

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 11 2,411,127 2,073,994

Borrowings 12 730,701 2,864,868

Current tax liabilities - (4)

Employee benefits 14 388,249 504,551

Other financial liabilities 13 2,651,117 2,652,754

TOTAL CURRENT LIABILITIES 6,181,194 8,096,163

NON-CURRENT LIABILITIES

Borrowings 12 2,466,370 -

Employee benefits 14 - 28,707

Other financial liabilities 13 16,139,525 16,630,946

TOTAL NON-CURRENT LIABILITIES 18,605,895 16,659,653

TOTAL LIABILITIES 24,787,089 24,755,816

NET ASSETS 9,739,951 9,704,574

EQUITY

Reserves 52,526 67,750

Retained earnings/profit 9,687,425 9,636,824

Total equity attributable to equityholders of the Company 9,739,951 9,704,574

TOTAL EQUITY 9,739,951 9,704,574




S TAT E M E N T O F C H A N G E S I N E Q U I T YFOR THE YEAR ENDED 30 APRIL 2019


Royal Queensland Yacht Squadron Limited & its Controlled EntitiesABN: 25 053 989 272

Statement of Changes in EquityFor the Year Ended 30 April 2019

ISSOSF

$

ReservesWyuna

Syndicate

$

Trophy

$

RetainedEarnings

$

Total

$

Balance at 1 May 2018 23,521 2,320 41,909 9,636,824 9,704,574

Profit attributable to members ofthe parent entity - - - 50,601 50,601

Transactions with owners intheir capacity as owners - - - - -

Transfers to/(from) reserves (15,224) - - - (15,224)

Balance at 30 April 2019 8,297 2,320 41,909 9,687,425 9,739,951

ISSOSF

$

ReservesWyuna

Syndicate

$

Trophy

$

RetainedEarnings

$

Total

$

Balance at 1 May 2017 23,521 2,320 41,909 9,232,536 9,300,286

Profit attributable to members ofthe parent entity - - - 404,288 404,288

Transactions with owners intheir capacity as owners - - - - -

Balance at 30 April 2018 23,521 2,320 41,909 9,636,824 9,704,574



ABN 25 053 989 272


S TAT E M E N T O F C A S H F L O W SFOR THE YEAR ENDED 30 APRIL 2019



ABN: 25 053 989 272

Statement of Cash FlowsFor the Year Ended 30 April 2019

Note

2019

$

2018

$

CASH FLOWS FROM OPERATINGACTIVITIES:

Receipts from operations 12,502,888 12,157,827

Payments to suppliers andemployees (11,215,693) (10,928,491)

Interest received 157 1,815

Finance costs paid (265,918) (228,354)

Net cash provided by/(used in)operating activities 22 1,021,434 1,002,797

CASH FLOWS FROM INVESTINGACTIVITIES:

Payment for property, plant andequipment (1,567,292) (1,230,587)

Net cash used by investing activities (1,567,292) (1,230,587)

CASH FLOWS FROM FINANCINGACTIVITIES:

Net receipt/(repayment) ofborrowings 332,203 111,729

Net cash used by financing activities 332,203 111,729

Net increase/(decrease) in cash andcash equivalents held (213,655) (116,061)

Cash and cash equivalents atbeginning of year 813,450 929,511

Cash and cash equivalents at end offinancial year 6 599,795 813,450




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 2019


ABN: 25 053 989 272

Notes to the Financial StatementsFor the Year Ended 30 April 2019

The financial report covers Royal Queensland Yacht Squadron Limited & its Controlled Entities ('the Group'). RoyalQueensland Yacht Squadron Limited & its Controlled Entities is a not-for-profit Company limited by guarantee, incorporatedand domiciled in Australia.

Each of the entities within the Group prepare their financial statements based on the currency of the primary economicenvironment in which the entity operates (functional currency). The consolidated financial statements are presented inAustralian dollars which is the parent entity’s functional and presentation currency.

The financial report was authorised for issue by the Directors on the date of the Director Report signing.

Classification and presentation of items in the financial statements have changed in the 2019 financial year. Adherent toAustralian accounting standards, the comparative balances have also been reclassified and re-presented. Thisencompasses an overhaul of all items on the Statement of profit or loss and other comprehensive income into a moreappropriate disclosure of expenses by their nature. It is impracticable to state the amounts of all reclassified and re-presented balances. These adjustments were made to provide a greater value of reporting to the users of the financialstatements.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with theAustralian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001.

2 Summary of Significant Accounting Policies

(a) Basis for consolidation

The consolidated financial statements include the financial position and performance of controlled entities fromthe date on which control is obtained until the date that control is lost.

Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entitiesin the consolidated entity have been eliminated in full for the purpose of these financial statements.

Appropriate adjustments have been made to a controlled entity’s financial position, performance and cash flowswhere the accounting policies used by that entity were different from those adopted by the consolidated entity.All controlled entities have an April financial year end except for the Royal Queensland Yacht Squadron JohnHarrison Olympic Support Foundation, which has a June year end.

(b) Income Tax

(I) Royal Queensland Yacht Squadron Limited (Parent entity) - The company is exempt from the payment ofincome tax under Section 50-45 of the Income Tax Assessment Act 19997.

(II) RQYS Marina Limited (Controlled entity) - The charge for current income tax expense is based on theprofit/(loss) for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates thathave been enacted or are substantively enacted by the balance date.

Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts oftax bases of assets and liabilities to the carrying amounts in the consolidated financial statements.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted orsubstantively enacted by the end of the reporting period.

10


ABN 25 053 989 272




ABN: 25 053 989 272



(b) Income Tax

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extentthat it is probable that taxable profit will be available against which the deductible temporary differences andlosses can be utilised.

Current and deferred tax is recognised as income or an expense and included in profit or loss for the periodexcept where the tax arises from a transaction which is recognised in other comprehensive income or equity, inwhich case the tax is recognised in other comprehensive income or equity respectively.

(III) RQYS Motel Trust, RQYS Marina 1 Trust, Harbour Dredging Trust, RQYS New Marina Trust, RQYSDeanbilla Bay Trust, RQYS Nautical Trust and Royal Queensland Yacht Squadron John Harrison OlympicSupport Foundation (controlled entities) - These are discretionary trusts and as such will not pay income taxprovided the assessable income of the trust (calculated in accordance with the Income tax Assessment Act1997) is distributed to the trust's beneficiaries each year.

Royal Queensland Yacht Squadron is the nominated beneficiary of each trust (excluding Royal QueenslandYacht Squadron John Harrison Olympic Support Foundation) and it is the trustees' intention to ensure that theassessable income of the trusts is distributed each year.

(c) Leases

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,are charged as expenses on a straight-line basis over the life of the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis overthe life of the lease term.

(d) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the Group and specific criteria relating to the type of revenueas noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net ofreturns, discounts and rebates.

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

Sale of goods

Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time whenrisks and rewards are transferred and there is no longer any ownership or effective control over the goods.

Donations

Donations and bequests are recognised as revenue when received.

11



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 2019


ABN: 25 053 989 272



(d) Revenue and other income

Interest revenue

Interest is recognised using the effective interest method.

Rendering of services

Revenue in relation to rendering of services is recognised depending on whether the outcome of the servicescan be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the servicesis used to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognisedthat are recoverable.

Rental income

Investment property revenue is recognised on a straight-line basis over a period of the lease term so as toreflect a constant periodic rate of return on the net investment.

Member Subscriptions

Revenue from membership subscriptions is recognised on a straight line basis over the financial year.

Other income

Other income is recognised on an accruals basis when the Group is entitled to it.

(e) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payablesin the statement of financial position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flowsarising from investing and financing activities which is recoverable from, or payable to, the taxation authority isclassified as operating cash flows.

(f) Property, plant and equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulateddepreciation and impairment.

Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantlingand restoring the asset, where applicable.

12



ABN 25 053 989 272



ABN: 25 053 989 272



(f) Property, plant and equipment

Land and buildings

All assets are measured using the cost model.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assetsuseful life to the Group, commencing when the asset is ready for use.

Marina 1 is located in an area which is subject to a lease from the Department of Transport. The lease, whichcommenced 19 March 1999, has an expiration date of 31 December 2028. A second lease has been enteredinto for the period commencing 1 January 2029 and has an expiration date of 31 December 2051.

Marina 2 is located in an area which is subject to a lease from the Department of Transport. The lease, whichcommenced 25 February 2010, has been extended for the period commencing 1 January 2029 and has anexpiration date of 31 December 2051.

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Capital works in progress 0%

Freehold land and ground improvements 2-25%

Buildings and improvements 2-20%

Marina 3.3-4.5%

Furniture, plant and equipment 10-33%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each assetis reviewed. Any revisions are accounted for prospectively as a change in estimate.

(g) Investment property

Investment property is held at cost which includes expenditure that is directly attributable to the acquisition ofthe investment property. The investment property, being the Motel building and improvements are depreciatedon a straight line basis at 3.33% per annum.

(h) Financial instruments

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entitybecomes a party to the contractual provisions of the instrument.

The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fairvalue through profit or loss, transaction costs except where the instrument is classified at "fair value throughprofit or loss", in which case transaction costs are expensed to profit or loss immediately.

Financial assets at amortised costsThe Group classifies its financial assets as at amortised cost only if both of the following criteria are met: - the asset is held within a business model whose objective is to collect the contractual cash flows, and - the contractual terms give rise to cash flows that are solely payments of principal and interest

13



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 TSFOR THE YEAR ENDED 30 APRIL 2019


Notes to the Financial Statements For the Year Ended 30 April 2019


(h) Financial instruments

14

Impairment of financial assets

At the end of the reporting period the Group assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Financial assets at amortised cost

If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate.

Impairment on loans and receivables is reduced through the use of an allowance account, all other impairment losses on financial assets at amortised cost are taken directly to the asset.

Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.

(i) Impairment of non-financial assets

At the end of each reporting period the Group determines whether there is an evidence of an impairment indicator for non-financial assets. Where an indicator exists the recoverable amount of the asset is estimated. Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss, except for goodwill.

(j) Borrowings

Borrowing costs are recognised as an expense when incurred.

(k) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

(l) Trade and other receivables

Accounts receivable are classified as subsequently measured at amortised cost.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL). The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date.

Trade debtors and other receivables are non interest bearing and receipt is normally on 30 day terms. Therefore, the carrying value of trade debtors and other receivables approximates its fair value.


ABN 25 053 989 272






15

(m) Trade and other payables

A liability is recorded for goods and services received prior to balance date, whether invoiced to the company or not. Trade payables are normally settled within 30 days.

(n) Employee benefits

Provision is made for the Group's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is 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 for those benefits. In 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, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

(o) New Accounting Standards and Interpretations

New accounting standards for application in the current period

AASB 9 Financial Instruments AASB 9 Financial Instruments Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. The transition provisions of AASB 9 allow an entity not to restate comparatives and the Group has elected not to restate as there is no material impact to the financial statement.

a) Classification and measurement The classification and measurement requirements of AASB 9 did not have any impact on the Group. The Group continued measuring at fair value all financial assets previously held at fair value under AASB 139.

b) Impairment The adoption of AASB 9 has not materially changed the Group's accounting for impairment losses for financial assets, though it is replacing AASB 139's incurred loss approach with a forward-looking expected credit loss (ECL) approach. AASB 9 requires the Association to recognise an allowance for ECLs for all debt instruments not held at fair value through profit or loss and contract assets. Upon adoption of AASB 9, there has been no need to recognise additional impairment on the Group's Trade Receivable as the default rates for its customers is at 0%.





ABN: 25 053 989 272



(o) New Accounting Standards and Interpretations

New accounting standards for application in future periods

The AASB has issued new and amended Accounting Standards and Interpretations that have mandatoryapplication dates for future reporting periods. The Group has decided not to early adopt these Standards. Thefollowing table summarises those future requirements, and their impact on the Group where the standard isrelevant:

Pronouncement AASB 15 Revenue from Contracts with Customers

Nature of the Change inAccounting Policy

The standard shifts the focus from the transaction-level to a contract-basedapproach.

Recognition is determined based on what the customer expects to beentitled to (rights and obligations), while measurement encompassesestimation by the entity of the amount expected to be entitled forperforming under the contract.

Effective Date Effective for periods beginning on or after 1 January 2019

Expected Impact on theFinancial Statements

The impact of this new standard will be assessed in the 2019 financialyear. It is not expected to have a significant material impact on the revenuerecognition of future revenues.

Pronouncement AASB 16 leases

Nature of the Change inAccounting Policy

Lessee entities will be required to recognise assets and liabilities arisingfrom all leases on the balance sheet, with the exception of leases of 12months or less and leases of small assets, such as laptops. Interestexpense and amortisation charges will be recognised in profit or loss.

A lessee is required to recognise a right of use asset representing its rightto use the underlying leased asset and a lease liability representing itsobligations to make lease payments. The right of use assets is measuredsimilarly to other non financial assets (such as property, plant andequipment) and lease liabilities similarly to other financial liabilities.

Lessor accounting will generally remain unchanged, meaning lessor andlessee accounting will not be ‘symmetrical’.

Effective Date Effective for periods beginning on or after 1 January 2019

Expected Impact on theFinancial Statements

As at the reporting date, the Group has non-cancellable operating leasecommitments of $14,242,921, see note 15. From preliminary assessment,the Group expects to recognise on 1 May 2019, right-of-use assets andlease liabilities (after adjustments for prepayments and accrued leasepayments recognised as at 30 April 2019) amounts not materially differentto the current year commitment as 30 April 2019.

The Group’s activities as a lessor are not material and hence the Groupdoes not expect any significant impact on the financial statements.However, some additional disclosures will be required from next year.

16


ABN 25 053 989 272




ABN: 25 053 989 272


3 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regardingassumptions 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 the financialstatements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below;

Impairment

The Group assesses impairment at each reporting date by evaluating conditions specific to the consolidated entity thatmay lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset isdetermined. Value in-use calculations performed in assessing recoverable amounts incorporate a number of keyestimates. No impairment has been recognised for the year ended 30 April 2019 (2018: $NIL).

Useful lives

The Group assesses and determines the useful lives and residual values of property, plant and equipment. Thisassessment is made upon acquisition of the asset and reviewed on an annual basis for changes in estimate.Thisannual review has not resulted in the re-assessment of the useful lives for major assets held by the Group.

17






18

4 Income Tax Expense

(a) Reconciliation of income tax to accounting profit:

2019 $

2018 $

Profit 50,601 404,288 Prime facie tax payable @27.5% (PY: 27.5%) 13,915 113,201

Add:

Tax effect of:

13,915 113,201

Less:

Tax effect of:

- Permanent adjustments 13,915 115,213 - Deductible temporary differences - (2,012)

- -

5 Other Expenses

Athlete distributions 157,010 81,575 Consumables 194,187 282,741 Function costs 234,182 176,780 Vessel costs 239,138 342,120 Volunteer expenses 38,178 40,065 Other expenses 440,381 875,238

1,303,076 1,798,519

6 Cash and Cash Equivalents Cash on hand 29,738 33,434 Bank balances 570,058 780,016

599,796 813,450

7 Trade and Other Receivables CURRENT

Trade and other receivables 1,852,682 1,479,510 Provision for impairment (26,000) (6,000) Dredging expenses recoverable 176,985 158,700

2,003,667 1,632,210

NON-CURRENT

Dredging expenses recoverable 214,544 451,140


ABN 25 053 989 272




ABN: 25 053 989 272


8 Property, plant and equipment

2019

$

2018

$

Freehold land

At cost 2,120,000 2,120,000

Buildings

At cost 6,974,376 5,494,508

Accumulated depreciation (2,299,984) (1,958,185)

Total buildings 4,674,392 3,536,323

Capital works in progress

At cost 232,035 958,035

Furniture, plant and equipment

At cost 7,373,549 7,080,446


Total furniture, fixtures and fittings 2,698,631 2,422,100

Land and ground improvements

At cost 2,545,524 2,462,625

Accumulated depreciation (977,678) (884,816)

Total land and groundimprovements 1,567,846 1,577,809

Marina

At cost 23,856,975 23,856,975


Total Marina 16,830,390 17,631,495

28,123,294 28,245,762

9 Investment Properties

Cost 4,285,530 4,283,449


2,655,239 2,796,774

19





ABN: 25 053 989 272


10 Other Assets

2019

$

2018

$

CURRENT

Prepayments 625,317 289,437

11 Trade and Other Payables

CURRENT

Trade payables 2,411,127 2,073,994

12 Borrowings

CURRENT

Secured liabilities:

Bank overdraft 29,700 32,063

Bank loans 394,251 2,832,805

Equipment leases 306,750 -

730,701 2,864,868

NON-CURRENT

Secured liabilities:

Bank loans 2,466,370 -

The bank loan is secured by a registered mortgage over the head lease held by RQYS Motel Pty Ltd over the propertyknown as "Manly Marina Cove Motel", a fixed and floating charge over all assets and uncalled capital of RQYS MotelPty Ltd and a guarantee by Royal Queensland Yacht Squadron Limited.

13 Other Financial Liabilities

CURRENT

Marina leases received in advance 2,319,800 2,389,649

Dredging trust funds held 331,317 263,105

2,651,117 2,652,754

NON-CURRENT

Marina leases received in advance 16,139,525 16,630,946

20


ABN 25 053 989 272




ABN: 25 053 989 272


14 Employee Benefits

2019

$

2018

$

CURRENT

Long service leave 149,899 257,012

Provision for employee benefits 238,350 247,539

388,249 504,551

NON-CURRENT

Long service leave - 28,707

15 Leasing Commitments

(a) Operating leases

Minimum lease payments under non-cancellable operating leases:

- not later than one year 442,390 436,137

- between one year and five years 1,769,558 1,744,549

- later than five years 12,030,973 12,513,271

14,242,921 14,693,957

Marina 1 is located in an area which is subject to a lease held in the name of RQYS Marina Limited from theDepartment of Transport. The lease, which commenced 19 March 1999, has an expiration date of the 31 December2028. RQYS Nominees Pty Ltd as trustee of the Marina 1 Trust has entered into a lease from the Department ofTransport covering the area of Marina 1 for the period commencing 1 January 2029 and has an expiration date of 31December 2051. The lease commitments shown take into account the rentals in the lease from 2019 to 2051.

Marina 2 is located in an area subject to a lease from the Department of Transport. The lease, which commenced onthe 25 February 2010, had an expiration date of 24 February 2035, RQYS Nominees Pty Ltd as trustee for the NewMarina Trust has finalised negotiations with the Department of Transport to extend the lease from 25 February 2035and has an expiration date of 31 December 2051. The lease commitments shown include the Marina 2 lease to 2051

16 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each full member is required to contribute a maximum of $100 eachtowards meeting any outstandings and obligations of the Company, $80 in the case of country members and memberswho are residing outside of Queensland, life members, senior members, social members, crew members, young adultmembers and honorary members and $60 in respect of junior members. In the case of fully paid members, thepayment of the fully paid membership fee discharges them from any further liability as members of the company. At 30April 2019 the number of members was 4,506 (2018: 4,363).

21





ABN: 25 053 989 272


17 Tax assets and liabilities

2019

$

2018

$

Current tax - 25,243

Note

OpeningBalance

$

Charged toIncome

$

ClosingBalance

$

Deferred tax assets

Provisions 2,100 (175) 1,925

Provisions - employee benefits 3,872 1,073 4,945

Fair value gain adjustments 27,285 1,114 28,399

Balance at 30 April 2018 33,257 2,012 35,269

Doubtful debts 1,925 - 1,925

Other provisions and accruals 4,945 - 4,945

Other temporary differences 28,399 - 28,399

Balance at 30 April 2019 4 35,269 - 35,269

18 Key Management Personnel Remuneration

Key management personnel remuneration included within employee expenses for the year is shown below:

Short-term employee benefits 297,662 290,416

Long-term benefits 16,640 16,640

Post-employment benefits 27,737 26,125

342,039 333,181

The above remuneration is of key executives, being the General Manager and Financial Controller of RoyalQueensland Yacht Squadron Limited. There has been no remuneration paid to Directors during the year.

22



ABN 25 053 989 272



ABN: 25 053 989 272


19 Interests in Subsidiaries

Composition of the Group

Parent

Royal Queensland Yacht Squadron Limited

Subsidiaries

RQYS Marina Limited

RQYS Motel Trust

RQYS Motel Pty Ltd ATF RQYS Motel Trust

RQYS New Marina Trust

RQYS Nominees Pty Ltd ATF RQYS New Marina Trust

RQYS Marina 1 Trust

RQYS Nominees Pty Ltd ATF RQYS Marina 1 Trust

RQYS Harbour Dredging Trust

RQYS Harbour Dredging Pty Ltd ATF RQYS Harbour Dredging Trust

RQYS Nautical Trust

RQYS Nominees Pty Ltd ATF RQYS Nautical Trust

RQYS Deanbilla Bay Trust (terminated during 2019)

RQYS Nominees Pty Ltd ATF RQYS Deanbilla Bay Trust (teriminatedduring the 2019)

RQYS Assets Trust

RQYS Assets Pty Ltd ATF RQYS Assets Trust

Manly Operations Trust

Manly Operations Pty Ltd ATF Manly Operations Trust

Royal Queensland Yacht Squadron John Harrison Olympic SupportFoundation

Royal Queensland Yacht Squadron John Harrison Olympic SupportFoundation Pty Ltd ATF Royal Queensland Yacht Squadron JohnHarrison Olympic Support Foundation

Country of Incorporation

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

Australia

PercentageOwned (%)

2019

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

PercentageOwned (%)

2018

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

20 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 30 April 2019 other than the existenceof a guarantee still in place between Westpac Banking Corporation and Royal Queensland Yacht Squadron Limitedwith respect to loan repayment obligations of RQYS Motel Pty Ltd, and a new guarantee between Westpac BankingCorporation and Royal Queensland Yacht Squadron Limited with respect to equipment lease of RQYS Nominees PtyLtd. At the date of this statement, there is no indication that any demand will be made under the guarantee. (30 April2018: Same circumstances as the current year).

21 Related Parties

The ultimate parent entity, which exercises control over the Group, is Royal Queensland Yacht Squadron Limitedwhich is incorporated in Australia and owns 100% of its Controlled Entities.

Key management personnel - refer to Note 18.

23






21 Related Parties

24

Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members.

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

Some of the Directors of the Company are also Directors of RQYS Marina Limited, RQYS Motel Pty Ltd (as trustee for RQYS Motel Trust), RQYS Nominees Pty Ltd (as trustee for the New Marina Trust, RQYS Marina 1 Trust, RQYS Nautical Trust, RQYS Deanbilla Bay Trust), RQYS Assets Pty Ltd (as trustee for RQYS Assets Trust), Manly Operations Pty Ltd (as trustee for Manly Operations Trust), Harbour Dredging Pty Ltd (as trustee for the Harbour Dredging Trust) and Royal Queensland Yacht Sqaudron John Harrison Olympic Support Foundation Pty Ltd (as trustee for Royal Queensland Yacht Squadron John Harrison Olympic Support Foundation.

It is to be noted that all the current Directors of Royal Queensland Yacht Squadron Limited, with the exception of Michael Charles Atkinson, Curtis David Skinner, Matthew Harrison, Matthew Allen, Fraser Adrian Spencer and Rod Johannessen, have an interest in berths managed and maintained by RQYS Marina Limited and/or RQYS Nominees Pty Ltd. This interest involves the lease holding or rental of Marina berths, with all transactions conducted at all times strictly at arm's length.



26

22 Cash Flow Information

(a) Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2019

$ 2018

$ Profit/(loss) for the year 50,601 404,288 Cash flows excluded from profit attributable to operating activities

Non-cash flows in profit:

- depreciation 1,687,677 1,708,066 - amortisation of investment property 143,616 144,631 - provision for doubtful debt 20,000 6,000

Changes in assets and liabilities:

- (increase)/decrease in trade and other receivables (154,860) (71,703) - (increase)/decrease in other assets (335,880) (451,140) - (increase)/decrease in inventories (100,525) (2,072) - (increase)/decrease in deferred tax asset 1,719 576 - increase/(decrease) in current tax assets 25,248 (31,070) - increase/(decrease) in trade and other payables 321,905 (214,451) - increase/(decrease) in fees and levies in advance (493,058) (442,148) - increase/(decrease) in provisions (145,009) (48,180)

Cashflows from operations 1,021,434 1,002,797

23 Events after the end of the Reporting Period

The financial report was authorised for issue on the date of the Director report signing by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.


ABN 25 053 989 272





26

24 Parent entity

2019 $

2018 $


Assets

Current assets 3,092,607 1,162,159 Non-current assets 9,122,210 8,689,016

Total Assets 12,214,817 9,851,175 Liabilities

Current liabilities 1,959,438 2,100,924 Non-current liabilities 931,370 28,707

Total Liabilities 2,890,808 2,129,631 Equity

Retained earnings 9,271,483 7,653,655 General reserve 52,526 67,750

Total Equity 9,324,009 7,721,405

Statement of Profit or Loss and Other Comprehensive Income

Profit/(loss) for the year (370,110) (369,520)

Total comprehensive income (370,110) (369,520)

Guarantees

Details of guarantees are disclosed in note 20.

Contingent liabilities

The parent entity did not have any contingent liabilities as at 30 April 2019 or 30 April 2018.

25 Statutory Information The registered office of and principal place of business of the company is: 578 Royal Esplanade, Manly QLD 4179



D I R E C T O R S ’ D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2019


ABN: 25 053 989 272

Directors' Declaration

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 6 to 25, are in accordance with the Corporations Act 2001and:

a. comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

b. give a true and fair view of the financial position as at 30 April 2019 and of the performance for the year ended onthat date of the Company and consolidated group.

2. In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as andwhen they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director ................................................................................................................................................

Director ................................................................................................................................................

Dated this .............................. day of .............................. 2019

26


26-41


ABN 25 053 989 272


I N D E P E N D E N T A U D I T R E P O R T FOR THE YEAR ENDED 30 APRIL 2019



28

Crowe Horwath Brisbane ABN79981227862 MemberCroweHorwathInternational


Level16120EdwardStreet BrisbaneQLD4000 Australia Tel+61732333555 Fax+61732333567 www.crowehorwath.com.au

RoyalQueenslandYachtSquadron Limited anditsControlledEntities

Independent Auditor’s Report to the Members of Royal Queensland Yacht Squadron Limited and its Controlled Entities

Opinion

WehaveauditedthefinancialreportofRoyalQueenslandYachtSquadronLimited (theCompanyanditscontrolledentities (the“Group”)),whichcomprisestheconsolidatedstatementoffinancialpositionasat 30April2019,theconsolidatedstatementof profitorlossandother comprehensiveincome,theconsolidatedstatementofchangesinequityandtheconsolidatedstatementofcashflowsfortheyearthenended,andnotestothefinancialstatements,including a summary of significant accounting policies, and the directors’ declaration.

Inouropinion,theaccompanyingfinancialreportoftheGroupisinaccordancewiththeCorporations Act 2001,including:

(a) GivingatrueandfairviewoftheGroup’s financialpositionasat30April2019 andofitsfinancialperformancefortheyearthenended.

(b) ComplyingwithAustralianAccountingStandards– ReducedDisclosureRequirementsand theCorporations Regulations 2001.

Basis for Opinion

WeconductedourauditinaccordancewithAustralianAuditingStandards.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’s Responsibilities for the Audit of the Financial Report sectionofourreport.WeareindependentoftheGroup in accordancewiththeauditorindependencerequirementsoftheCorporations Act 2001 andtheethicalrequirementsoftheAccountingProfessionalandEthicalStandards Board’s APES 110 Code of Ethics for Professional Accountants (theCode)thatarerelevanttoourauditofthefinancialreportinAustralia.WehavealsofulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.

WeconfirmthattheindependencedeclarationrequiredbytheCorporations Act 2001,whichhasbeengiventothedirectorsoftheCompany,wouldbeinthesametermsifgiventothedirectorsasatthetimeofthisauditor’s report.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.



I N D E P E N D E N T A U D I T R E P O R T FOR THE YEAR ENDED 30 APRIL 2019

30

▪ Concludeontheappropriateness of the directors’ use of the going concern basis of accounting and, basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditions that may cast significant doubt on the Group’s ability to continue asagoingconcern.Ifweconclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the relateddisclosuresinthefinancialreportor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.

▪ Evaluatetheoverallpresentation,structureandcontentofthefinancialreport,includingthedisclosures,andwhetherthefinancialreportrepresentstheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.

Wecommunicatewiththedirectorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Crowe Horwath Brisbane John Zabala (FCA) SeniorPartner

Location:Brisbane Date: 27June2019


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 2019

The 2018/19 financial year was a year of moving forward steadily for the Marina Company. Berthed in one of the best marinas in Australia our members have enjoyed making the most of their boating activities. Ongoing maintenance and quality management has kept the facilities world class and the envy of many other marina facilities, especially with the completion of the Marina and Sports Amenities Building offering improved toilet and shower facilities. Events of note in the year have been:• Good occupancy rates.• The generosity of C/D Row occupants vacating

their berths for the 94 boats that competed in the 2018 Etchells Worlds.

• The arrival and introduction into service of the Roodberg 47 tonne lifter. Since becoming operational we have seen an impressive array of vessels lifted that would been impossible with the travel lift.

• Hardstand usage has increased across the board, especially to cater for the Roodberg lifts.

• An ongoing emphasis on safe work practices throughout the Marina and work areas.

In response to member enquiries plans are well advanced for the development of onsite storage. I encourage you to read the Honorary Treasurer’s Report on Marina activities for further information on Marina financial and corporate operations.

Efficient marina, yard and hardstand operations ensure that optimum services are provided to members. Mark GallagherCommodore and Chairman RQYS Marina Ltd



H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019R 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

The Statement of Profit and Loss is presented in a simpler format this year as the additional information provided last year was subsequently viewed as not being in strict compliance with accounting standards.

The overall Profit after Tax is a loss of $673k. The operating loss is $337k, the difference being an expense recognised of $335k for the transfer of berths at cost to the newly established RQYS Assets Trust. Following completion of Dredging the related income and expenses do not feature in the current years result. Employee expenses increased following the inclusion of annual leave and other on-costs.

As foreshadowed at the 2016 AGM, the action of removing the subsidisation of Marina 1 sub-sub-lease berth charges (half yearly charges) from

income derived from owned berths, berth rental commissions and other miscellaneous income, over three years was effectively completed. The RQYS Marina Board has agreed an annual half yearly charge increment of 5%+ CPI for the 2019/20 year.

It is important to note that the dredging cost in excess of the levies accumulated of $610k has been funded by a loan from RQYS Motel Limited, repayable from future dredge levies. This loan was reduced by $219k in the financial year.

Stephen Best Honorary Treasurer



CONTENTS

Directors’ Report

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

Statement of Profit and Loss and other Comprehensive Income


Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Directors’ Declaration

Independent Audit Report

PAGE

50

52

53

54

55

56

57

67

68

F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019


D I R E C T O R ’ S R E P O R TFOR THE YEAR ENDED 30 APRIL 2019

RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991


1

ThedirectorspresenttheirreportonRQYSMarinaLimitedforthefinancialyearended30April2019.

1 General information


Thenamesofeachpersonwhohasbeenadirectorduringtheyearandtothedateofthisreportare:

Mark Drew Gallagher Qualifications Grad.Dip.Law,B.ProfStudies,Dip.FraudInvestigation Experience Directorforsixyears InterestsintheCompany BerthLeaseHolder Specialresponsibilities Commodore

Captain Barry Edward Cuneo

Qualifications MasterClass1(ForeignGoing)FNI Experience Directorforfouryears InterestsintheCompany BerthLeaseHolder Specialresponsibilities

ViceCommodore

David Thomas Redfern Experience Directorfortwoyears Specialresponsibilities RearCommodore

Stephen Graham Best Qualifications B.Bus,GradDipManagement,DiplomaCompanyDirectorship,

FIPA,FFA,GAICD Experience MemberofGeneralCommitteefor2years.Directorfortwoyears Specialresponsibilities HonoraryTreasurer,ChairmanofFinance,Marketing&Development

Committee

Samuel Dugald Henderson Qualifications FellowoftheInstituteofCharteredAccountants Experience FormerHonoraryTreasurer,FormerDirectorofRoyalQueensland

YachtSquadronLimited InterestsintheCompany BerthLeaseHolder

Directorshavebeeninofficesincethestartofthefinancialyeartothedateofthisreportunlessotherwisestated.


TheprincipalactivityofRQYSMarinaLimitedduringthefinancialyearwasprovidingandmaintainingmarinaberths.

NosignificantchangesinthenatureoftheCompany'sactivityoccurredduringthefinancialyear.



D I R E C T O R ’ S R E P O R TFOR THE YEAR ENDED 30 APRIL 2019

RQYS Marina Limited ABN: 23 010 217 991


1 General information

2

Short and Long term objectives

The Company's short and long term objectives are to provide the members with a high standard of marina berths, quality services and facilities.

Members' guarantee

RQYS Marina Limited is a Company limited by guarantee. In the event of, and for the purpose of winding up of the Company, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up, is limited to $10 for all members, subject to the provisions of the company's constitution.

At 30 April 2019 the collective liability of members was $ NIL (2018: $ 4,640).

2 Other items

Future developments and results

Meetings of directors

During the financial year, 5 meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows:

Directors' Meetings

Number eligible to

attend Number attended

Mark Drew Gallagher 5 4 Captain Barry Edward Cuneo 5 5 David Thomas Redfern 5 4 Stephen Graham Best 5 5 Samuel Dugald Henderson 5 3

Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 April 2019 has been received and can be found on page 3 of the financial report.

Signed in accordance with a resolution of the Board of Directors:

Director: ...............................................................

Director: ................................................................

Dated this .............................. day of .............................. 2019 Dated this 20th day of June 2019

52



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 2019



3





AsauditorofRQYSMarinaLimitedfortheyearended30April2019,Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:



ThisdeclarationisinrespectofRQYSMarinaLimited duringtheyear. Crowe Horwath Brisbane John Zabala (FCA) SeniorPartner Location:Brisbane Date: 20 June2019



3





AsauditorofRQYSMarinaLimitedfortheyearended30April2019,Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:



ThisdeclarationisinrespectofRQYSMarinaLimited duringtheyear. Crowe Horwath Brisbane John Zabala (FCA) SeniorPartner Location:Brisbane Date: 20 June2019



S TAT E M E N T O F P R O F I T A N D L O S S A N D O T H E R 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 2019



Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 April 2019

Theaccompanyingnotesformpartofthesefinancialstatements. 4

Note 2019

$ 2018

$

Revenue Halfyearlymanagementcharges 1,158,768 944,921 Dredgingincome - 677,786 Otherincome 30,548 104,391 Totalrevenue 1,189,316 1,727,098

Expenses Employeebenefitsexpense (610,024) (476,855) Occupancyexpenses (482,923) (461,596) Professionalandassociationfees (41,944) (28,056) Repairsandmaintenance (54,726) (64,013) Insuranceexpense (80,490) (66,410) Facilitiesusagefee (117,161) (117,161) Financecosts (51,986) (34,129) Dredgingexpenses - (677,786) Otherexpenses (69,246) (64,877) Depreciationexpense (18,627) (27,960) Donationexpense - (480,000) Intra-companyassettransfer 4 (335,548) -

Totalexpenses (1,862,675) (2,498,843)

Profit/(loss) before income tax (673,359) (771,745)

Profit/(loss) for the year (673,359) (771,745)

Other comprehensive income for the year, net of tax - -

Total comprehensive income/(loss) for the year (673,359) (771,745)


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 2019




Statement of Financial Position 30 April 2019


Note 2019

$ 2018

$

ASSETS CURRENTASSETS Cashandcashequivalents 5,605 5,953 Tradeandotherreceivables 6 249,053 1,098,506 Currenttaxasset 11 - 25,243 Otherassets 8 145,722 171,661 TOTALCURRENTASSETS 400,380 1,301,363 NON-CURRENTASSETS Tradeandotherreceivables 6 214,544 451,140 Property,plantandequipment 7 18,195 417,991 Deferredtaxassets 11 33,546 35,269 Otherassets 8 1,248,222 1,365,374 TOTALNON-CURRENTASSETS 1,514,507 2,269,774 TOTALASSETS 1,914,887 3,571,137

LIABILITIES CURRENTLIABILITIES Tradeandotherpayables 9 868,620 1,152,851 Otherliabilities 10 167,950 866,610 TOTALCURRENTLIABILITIES 1,036,570 2,019,461 NON-CURRENTLIABILITIES TOTALLIABILITIES 1,036,570 2,019,461 NETASSETS 878,317 1,551,676

EQUITY RetainedEarnings 878,317 1,551,676 TOTALEQUITY 878,317 1,551,676



S TAT E M E N T O F C H A N G E S I N E Q U I T YFOR THE YEAR ENDED 30 APRIL 2019



Statement of Changes in Equity For the Year Ended 30 April 2019


2019

Retained Earnings

$ Total

$ Balance at 1 May 2018 1,551,676 1,551,676 Profit/(loss)fortheyear (673,359) (673,359)

Balance at 30 April 2019 878,317 878,317 2018

Retained Earnings

$ Total

$ Balance at 1 May 2017 2,323,421 2,323,421 Profit/(loss)fortheyear (771,745) (771,745)

Balance at 30 April 2018 1,551,676 1,551,676


S TAT E M E N T O F C A S H F L O W SFOR THE YEAR ENDED 30 APRIL 2019




Statement of Cash Flows For the Year Ended 30 April 2019


Note 2019

$ 2018

$

CASH FLOWS FROM OPERATING ACTIVITIES: Receiptsfromcustomers 2,014,225 1,520,944 Paymentstosuppliersandemployees (1,962,744) (1,900,309) Interestreceived 157 1,013 Borrowingcostspaid (51,986) - Netcashprovidedby/(usedin)operatingactivities 16 (348) (378,352)

CASH FLOWS FROM INVESTING ACTIVITIES: Paymentforproperty,plantandequipment - (3,263) Netcashusedbyinvestingactivities - (3,263)

CASH FLOWS FROM FINANCING ACTIVITIES: Netincrease/(decrease)incashandcashequivalentsheld (348) (381,615) Cashandcashequivalentsatbeginningofyear 5,953 387,568 Cashandcashequivalentsatendoffinancialyear 5,605 5,953






8

The financial report covers RQYS Marina Limited as an individual entity. RQYS Marina Limited is a Company limited by guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of RQYS Marina Limited is Australian dollars.

The financial report was authorised for issue by the Directors on the date of the Directors report signing.

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 accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001.

The financial statements cover the RQYS Marina Limited as an individual entity. RQYS Marina Limited is a public company limited by guarantee, incorporated and domiciled in Australia.

The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presented in the accounting treatment area of the relevant notes and are consistent with prior reporting periods unless otherwise stated.


(a) Income Tax

The charge for current income tax expense is based on the profit/(loss) for the year adjusted for any non-assessable or disallowed items including commercial operations. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income except where it relates to items directly to equity, in which case the deferred tax is adjusted directly in other comprehensive income.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and losses can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.






9

(b) Leases

Leasepaymentsforoperatingleases,wheresubstantiallyalloftherisksandbenefitsremainwiththelessor,arechargedasexpensesonastraight-linebasisoverthelifeoftheleaseterm.

(c) Revenue and other income

ThecompanyisresponsibleformanagingtheberthswithinMarina1attheRoyalQueenslandYachtSquadronandchargeshalf-yearlymanagementfeestotheownersofthesubsub-leases.Half-yearlyfeesoccurinApril(forMaytoOctober)andOctober(NovembertoApril).Aliabilityforincomeinadvanceisrecognisedbythecompanywhenthefeeischarged,andrevenueisrecognisedeachmonth.

Interestisrecognisedasitaccruesusingtheeffectiveinterestmethod.Thisisamethodofcalculatingtheamortisedcostofafinancialassetandallocatingtheinterestincomeovertherelevantperiodusingtheeffectiveinterestratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialasset.

(d) Goods and services tax (GST)

Revenue,expensesandassetsarerecognisednetoftheamountofgoodsandservicestax(GST),exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice(ATO).

ReceivablesandpayablesarestatedinclusiveofGST.

ThenetamountofGSTrecoverablefrom,orpayableto,theATOisincludedaspartofreceivablesorpayablesinthestatementoffinancialposition.

CashflowsinthestatementofcashflowsareincludedonagrossbasisandtheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,thetaxationauthorityisclassifiedasoperatingcashflows.

(e) Property, plant and equipment

Eachclassofproperty,plantandequipmentiscarriedatcostless,whereapplicable,anyaccumulateddepreciationandimpairment.

Costsincludepurchaseprice,otherdirectlyattributablecostsandtheinitialestimateofthecostsofdismantlingandrestoringtheasset,whereapplicable.

Plantandequipmentaremeasuredusingthecostmodel.

Plantandequipment,isdepreciatedonastraight-linebasisovertheassetsusefullifetotheCompany,commencingwhentheassetisreadyforuse.

Thedepreciationratesusedforeachclassofdepreciableassetareshownbelow: Fixed asset class Depreciation rate Plant&Equipment 10-25%

Attheendofeachannualreportingperiod,thedepreciationmethod,usefullifeandresidualvalueofeachassetisreviewed.Anyrevisionsareaccountedforprospectivelyasachangeinestimate.







10

(f) Financial instruments

Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument.

The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs except where the instrument is classified at "fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately.

Impairment of financial assets

At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Financial assets at amortised cost

If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate.

Impairment on loans and receivables is reduced through the use of an allowance account, all other impairment losses on financial assets at amortised cost are taken directly to the asset.

Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.

(g) Impairment of non-financial assets

At the end of each reporting period the Company determines whether there is an evidence of an impairment indicator for non-financial assets.

Where an indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss.

(h) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

(i) Trade and other receivables

Accounts receivable are classified as subsequently measured at amortised cost.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL). The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of






(i) Trade and other receivables

11

both the current as well as the forecast direction of conditions at the reporting date.

Trade debtors and other receivables are non-interest bearing and receipt is normally on 30-day terms. Therefore, the carrying value of trade debtors and other receivables approximates its fair value.

(j) Trade and other payables

A liability is recorded for goods and services received prior to balance date, whether invoiced to the company or not. Trade payables are normally settled within 30 days.







12

New Accounting Standards and Interpretations

New accounting standards for application in the current period

AASB 9 Financial Instruments (effective 1 January 2018) IFRS9FinancialInstrumentsFinancialInstrumentsreplacesIAS39FinancialInstruments:RecognitionandMeasurementforannualperiodsbeginning onorafter1January2018,bringingtogetherallthreeaspectsoftheaccountingforfinancialinstruments:classificationandmeasurement;impairment;andhedgeaccounting.ThetransitionprovisionsofAASB9allowanentitynottorestatecomparativesandtheCompanyhaselectednottorestateasthereisnomaterialimpacttothefinancialstatement.

a)Classificationandmeasurement TheclassificationandmeasurementrequirementsofIFRS9didnothaveanyimpactontheCompany.TheCompanycontinuedmeasuringatfairvalueallfinancialassetspreviouslyheldatfairvalueunderIAS39.

b)Impairment TheadoptionofIFRS9hasnotmateriallychangedtheCompany'saccountingforimpairmentlossesforfinancialassets,thoughitisreplacingIAS39'sincurredlossapproachwithaforward-lookingexpectedcreditloss(ECL)approach.IFRS9requirestheCompany torecogniseanallowanceforECLsforalldebtinstrumentsnotheldatfairvaluethroughprofitorlossandcontractassets.UponadoptionofAASB9,therehasbeennoneedtorecogniseadditionalimpairmentontheCompany'sTradeReceivableasthedefaultratesforitscustomersisat0%.

AASB 15 Revenue from Contract with Customers (effective 1 January 2018) AASB15establishesacomprehensiveframeworkfordeterminingwhether,howmuchandwhenrevenueisrecognised.ItreplacesAASB118Revenue,andrelatedinterpretations.UnderAASB15,revenueisrecognisedwhenacustomerobtainscontrolofthegoodsorservices.Determiningthetimingofthetransferofcontrol- atapointintimeorovertime- requiresjudgement.UponadoptionofAASB15,therehasbeennoimpactfortheCompany'srevenuerecognition.

New accounting standards for application in future periods

TheAASBhasissuednewandamendedAccountingStandardsandInterpretationsthathavemandatoryapplicationdatesforfuturereportingperiods.TheCompanyhasdecidednottoearlyadopttheseStandards.Thefollowingtablesummarisesthosefuturerequirements,andtheirimpactontheCompanywherethestandardisrelevant:

Pronouncement AASB 16 leases NatureoftheChangeinAccountingPolicy Lesseeentitieswillberequiredtorecogniseassetsand

liabilitiesarisingfromallleasesonthebalancesheet,withtheexceptionofleasesof12monthsorlessandleasesofsmallassets,suchaslaptops.Interestexpenseandamortisationchargeswillberecognisedinprofitorloss.

EffectiveDate Effectiveforperiodsbeginningonorafter1January2019 ExpectedImpactontheFinancialStatements Theimpactofthisnewstandardistobeassessedinthe2020

financialyear.Itisnotexpectedtohaveasignificantmaterialimpactonthefinancialstatementsoftheentity.





13

3 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regarding 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 the financial statements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Key estimates - Impairment

The Company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value in-use calculations are performed in assessing recoverable amounts and incorporate a number of key estimates.

No impairment has been recognised for the year ended 30 April 2019 (2018: $NIL).

Key estimates - Useful Lives

The company assesses and determines the useful lives and residual values of property, plant and equipment. This assessment is made upon acquisition of the asset and reviewed on an annual basis for changes in estimate.

Key judgement - Income tax

For income tax purposes, the member contributions received for the dredging in advance constructive trust has been deferred for tax purposes on the basis that it qualifies as a constructive trust in favour of the berth sub sublessees.

4 Expenses

On 30 April 2019, 19 berths were transferred from Marina Ltd to RQYS Asset Trust at the book value. 17 berths do not have a book value as they were obtained at no cost, the other two berths have a book value of $408,000 at cost and $72,452.49 accumulated depreciation. This has resulted in a decrease in plant and equipment and a loss of $335,548 in the company.






14

5 Income Tax Expense

(a) Reconciliation of income tax to accounting profit:

2019 $

2018 $

Prime facie tax payable 27.5% (2018: 27.5%) (185,174) (212,230)

Less:

Tax effect of:

Add:

Tax effect of: - Permanent adjustments 185,174 214,242 - Deductible temporary differences - (2,012)

Income tax expense - -

6 Trade and Other Receivables CURRENT Trade receivables 84,068 503,028 Allowance for expected credit losses (12,000) (2,000) Dredge expenses recoverable 176,985 158,700

249,053 659,728

Related party debtors 15 - 438,778

249,053 1,098,506

NON-CURRENT Dredge expenses recoverable 214,544 451,140





15

7 Property, plant and equipment Plant and equipment Atcost 731,703 1,139,703 Accumulateddepreciation (726,360) (779,289)

Totalplantandequipment 5,343 360,414 Capitalworksinprogress 12,852 57,577

18,195 417,991

8 Other Assets CURRENT Prepayments 145,722 171,661

NON-CURRENT Facilitiesusageandleasefeeinadvance 1,248,222 1,365,374

9 Trade and Other Payables CURRENT

Tradepayables 446,943 1,152,851 Relatedpartypayables 421,677 -

868,620 1,152,851

Tradeandotherpayablesareunsecured,non-interestbearingandarenormallysettledwithin30days. Thecarryingamountsareconsideredtobeareasonableapproximationoffairvalue.

10 Other Liabilities CURRENT Leviesandleasefeespaidinadvance 167,950 865,586 DredgingTrust - 1,024

167,950 866,610



16

11 Tax assets and liabilities Current tax asset - 25,243

Note

Opening Balance

$

Charged to Income

$

Closing Balance

$

Deferred tax assets

Balance at 30 April 2018 33,257 2,012 35,269 Doubtful debts 1,925 - 1,925 Other provisions and accruals 4,945 - 4,945 Other temporary differences 28,399 - 28,399

Balance at 30 April 2019 5 35,269 - 35,269

The fair value of the berths transferred would have been $806,000.






17

12 Leasing Commitments

Operatingleases

2019 $

2018 $

Minimumleasepaymentsundernon-cancellableoperatingleases: - notlaterthanoneyear 326,761 321,798 - betweenoneyearandfiveyears 1,307,042 1,287,193 - laterthanfiveyears 1,529,061 1,827,637

3,162,864 3,436,628

ThemarinaislocatedinanareawhichissubjecttoaleasefromtheDepartmentofTransport.Thelease,whichcommenced19March1999,hasanexpirationdateof31December2028.

13 Members' Guarantee

TheCompanyisincorporatedundertheCorporations Act 2001 andisaCompanylimitedbyguarantee.IftheCompanyiswoundup,theconstitutionstatesthateachmemberisrequiredtocontributeamaximumof$10eachtowardsmeetinganyoutstandingsandobligationsoftheCompany.At30April2019thenumberofmemberswas- (2018:464).

14 Contingencies

IntheopinionoftheDirectors,theCompanydidnothaveanycontingenciesat30April2019(30April2018:None).

15 Related Parties

RoyalQueenslandYachtSquadronLimited(ultimateparententity)whichisincorporatedinAustralia,exercisescontroloverRQYSMarinaLimited.

Directors' Remuneration and Retirement Benefits

Thedirectors'receivednoremunerationorretirementbenefits(2018:$NIL).

Transactions and Balances with Director Related Entities

Detailsofdirector'sberthholding'sareincludedintheDirector'sreport.Transactionsenteredintowiththedirectorsare atarm'slengthandinaccordancewiththenormaltradingtermsofthecompany.



15 Related Parties

18

Loans to/from related parties

Unsecured loans are made between entities on an arm's length basis. There are no repayment terms set for any balance outstanding nor is there any interest payable for any balance outstanding. 2019 2018

Loans to/(from) related parties RQYS Motel Pty Ltd (421,677) 438,778





19

16 Cash Flow Information

Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2019

$ 2018

$ Profit for the year (673,359) (771,745) Cash flows excluded from profit attributable to operating activities Non-cash flows in profit:

- depreciation 18,627 50,919 - movement in provision of doubtful debts 20,000 (5,000) - net (gain)/loss on transfer of plant and equipment 335,548 - - other non-cash income/expense item 45,620 -

Changes in assets and liabilities: - (increase)/decrease in trade and other receivables 627,271 28,899 - (increase)/decrease in related party loans 860,456 654,722 - (increase)/decrease in prepayments 143,092 132,462 - (increase)/decrease in fees and levies in advance (698,660) 112,218 - (increase)/decrease in deferred tax asset 1,719 (17,832) - increase/(decrease) in dredge expense recoverable - (609,840) - increase/(decrease) in trade and other payables (705,910) 46,845 - increase/(decrease) in current tax liability 25,248 -

Cashflows from operations (348) (378,352)



20

17 Events after the end of the Reporting Period

The financial report was authorised for issue on the date of the Directors Report by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

18 Statutory Information The registered office of and principal place of business of the company is:

578 Royal Esplanade MANLY QLD 4179



D I R E C T O R S ’ D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2019


Directors' Declaration

20

ThedirectorsoftheCompanydeclarethat: 1. Thefinancialstatementsandnotes,assetoutonpages4to19,areinaccordancewiththeCorporations Act 2001 and:

a. complywithAustralianAccountingStandards- ReducedDisclosureRequirements;and

b. giveatrueandfairviewofthefinancialpositionasat30April2019andoftheperformancefortheyearendedonthatdateoftheCompany.

2. Inthedirectors'opinion,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasand

whentheybecomedueandpayable.

ThisdeclarationismadeinaccordancewitharesolutionoftheBoardofDirectors.

Director................................................................................................................................................

Director................................................................................................................................................

Datedthis..............................dayof..............................2019


57-66,



I N D E P E N D E N T A U D I T R E P O R TFOR THE YEAR ENDED 30 APRIL 2019

21

Our opinion on the financial report does not cover the other information and accordingly we do not express

any form of assurance conclusion thereon.

In 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.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

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 the

Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the

preparation of the financial report that gives a true and fair view and is free from material misstatement,

whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the ability of the Company to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the Directors either intend to liquidate the Company or to cease

operations, or have 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 from

material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted

in accordance with the 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, they could reasonably be expected to influence the economic decisions of users taken on the

basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional

judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or

error, 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 material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to o audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness 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.

Conclude on the appropriateness of the Director’s use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the

related disclosures in the financial report or, if such disclosures are inadequate, to modify our auditor’s

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Company to cease to continue as a going concern.



I N D E P E N D E N T A U D I T R E P O R TFOR THE YEAR ENDED 30 APRIL 2019

21

Our opinion on the financial report does not cover the other information and accordingly we do not express

any form of assurance conclusion thereon.

In 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.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

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 the

Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the

preparation of the financial report that gives a true and fair view and is free from material misstatement,

whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the ability of the Company to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the Directors either intend to liquidate the Company or to cease

operations, or have 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 from

material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted

in accordance with the 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, they could reasonably be expected to influence the economic decisions of users taken on the

basis of this financial report.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional

judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or

error, 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 material

misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to o audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness 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.

Conclude on the appropriateness of the Director’s use of the going concern basis of accounting and,

based on the audit evidence obtained, whether a material uncertainty exists related to events or

conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we

conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the

related disclosures in the financial report or, if such disclosures are inadequate, to modify our auditor’s

opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.

However, future events or conditions may cause the Company to cease to continue as a going concern.

22

Evaluate the overall presentation, structure and content of the financial report, including the disclosures,

and whether the financial report represents the underlying transactions and events in a manner that

achieves fair presentation.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the

audit and significant audit findings, including any significant deficiencies in internal control that we identify

during the audit.


John Zabala (FCA)

Senior Partner

Location: Brisbane

Date: 27 June 2019


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 Markwell

1892 - 1893 R P Earle

1893 - 1984 R H Lawson

1894 - 1895 J G Vidgen

1895 - 1897 J Clark

1897 - 1898 W J Weatherill

1898 - 1900 W A Douglass

1900 - 1902 J Clark

1902 - 1903 W A Douglas

1903 - 1919 T Welsby

1919 - 1921 W A Douglas

1921 - 1922 D MacTaggart

1922 - 1923 J Clark

1923 - 1925 J Love

1925 - 1927 W A Douglas

1927 - 1928 A L M Wilson

1928 - 1929 V Campbell

1929 - 1931 T L Jones

1931 - 1933 Dr C Croll

1933 - 1935 E Sparkes

1935 - 1936 T L Jones

1936 - 1938 A S Huybers

1938 - 1939 J R Figgis

1939 - 1946 F A Bruce

1946 - 1948 J Kelly

1948 - 1951 S N Gow

1951 - 1953 J H Robinson

1953 - 1955 T M Foggitt, D.S.C.

1955 - 1957 S N Wood

1957 - 1958 J H Robinson, M.B.E.

1958 - 1961 W E Whatmore

1961 - 1964 G Cavill

1964 - 1966 E T Early

1966 - 1968 N G Lockyer

1968 - 1971 K G N Kibble

1971 - 1973 J G M Tyquin

1973 - 1976 J Hattrick

1976 - 1979 D Bowly

1979 - 1981 N S Girdis, C.B.E.

1981 - 1982 A J Love O.A.M.

1982 - 1984 W J Thompson

1984 - 1986 J E Harrison, A.M.

1986 - 1988 W Bishop, O.A.M.

1988 - 1990 G J Sneesby

1990 - 1992 R E Crooke, O.A.M.

1992 - 1994 J A Ferguson, O.A.M.

1994 - 1996 B J Phillips

1996 - 1998 S H R Morris

1998 - 2000 R H Seymour

2000 - 2002 D R Land

2002 - 2004 J E Miall

2004 - 2006 W G Kirby

2006 - 2008 K A Miller

2008 - 2009 K J Anderson

2009 - 2011 C R McCart

2011 - 2013 G D Clarke

2013 - 2015 K A Miller

2015 - 2017 I R Threlfall

2017 - 2019 M D Gallagher

Major SponsorYacht Share

Corporate SponsorsAustralian Industry Trade College

Boutique Boats Company Club Marine

Coca ColaEnvy Scooters

Fareast GOA

Gold Coast City Marina Hardy Brothers Jewellers &

Wallace Bishop JewellersHeineken

Jetty Specialists Lendlease

Madison Technologies Marine Auctions

Maui Jim McGrath Real Estate

Moet & Chandon Morgans

Motorline Moco Food Services

Multihull Central Musto

North Sails Oatley Wines

PODS Ray White Marine

Robin Spencer Architects Safe Boating

SeAirLand Stefan

The Brokerage Trymax Marine

Veracity

ROYAL QUEENSLAND YACHT SQUADRON LIMITED

Sponsors 2018 | 2019We gratefully acknowledge the generous support

and assistance provided by our sponsors.

th annual report · understanding by members of the financial affairs of the squadron. the report...

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