Issuu

YEAR END MAY 2021

ANNUAL REPORT & FINANCIAL STATEMENTS

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CONTENTS 03 04 12 15 18 24 25 26 27 28 29 44 46

NOTICE TO MEMBERS ORDINARY RESOLUTIONS CHAIRMAN’S REPORT CEO’S REPORT DIRECTORS’ REPORT AUDITOR’S INDEPENDENCE DECLARATION STATEMENT OF COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION STATEMENT OF CHANGES IN EQUITY STATEMENT OF CASH FLOWS NOTES TO THE FINANCIAL STATEMENTS DIRECTORS’ DECLARATION INDEPENDENT AUDITOR’S REPORT

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

OFFICE BEARERS CHAIRMAN Chris King DEPUTY CHAIRMAN Mark Parry DIRECTORS Wayne Evans, Ralph Gibbons, Jeff Pattinson, Mick Garrihy, Michael Hayes CHIEF EXECUTIVE OFFICER (CEO) David Gearing OPERATIONS MANAGER Glen Stewart FINANCE MANAGER Matthew Swain AUDITORS Northcorp Accountants

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

NOTICE THE ANNUAL GENERAL MEETING WILL BE HELD IN THE CLUB HOUSE ON FRIDAY 17TH SEPTEMBER, 2021 AT 6:00PM AGENDA BUSINESS OF THE MEETING SHALL INCLUDE: 1. Confirmation of minutes from the previous Annual Meeting. 2. To receive reports from the Board of Directors. 3. To receive and consider the Annual Report and Financial Report for the year ended 31st May 2021 including the Independent Auditor’s Declaration and Audit Report. 4. T o receive and if thought fit, to pass the Ordinary Resolutions contained in the Notice of Annual General Meeting. It is a legal requirement that no resolution may be proposed at the General Meeting that is not already listed on the Notice of Meeting. Any ordinary resolution must receive 50% +1 of those Members eligible to vote at the meeting. Under the Registered Clubs Act: i)

Members who are employees of the Club are not entitled to vote

ii)

Proxy voting is prohibited

Amendments to Ordinary Resolutions (other than minor typographical corrections which do not change the substance or effect of the resolution) will not be permitted from the floor of the meeting. NOTICE TO MEMBERS Any financial member of the Club attending the Annual General Meeting who needs clarification on any matter relating to the Financial Statements contained herein is requested to please submit your questions in writing to the CEO no later than the 10th September 2021, so that your questions may be answered fully at the meeting. Any member requiring a detailed profit and loss account please contact the undersigned.

David Gearing CEO PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

ORDINARY RESOLUTIONS Ordinary Resolution No 1 – Honorarium of Directors Pursuant to the Registered Clubs Act 1976 the Members hereby authorise for the period preceding the next Annual General Meeting payment of the following honorarium at the expense of the Club, as recommended by the Board, in recognition of services rendered to the Club. CHAIR

$7,000.00

VICE CHAIR $5,000.00 The remaining Directors (5) $4,000.00 each All honorariums are to be paid pro rata to their service provided the service is actually rendered. All honorariums, at the discretion of the Board may be paid in instalments (i.e. monthly or quarterly) in arrears. All honorariums are to be considered all inclusive. Explanatory Note An Honorarium may only be paid where approved by a resolution passed at a General Meeting. The adoption of this resolution by the Members will confirm the amount paid as Honorariums at the expense of the Club in recognition of special honorary services rendered to the Club for the period preceding the next Annual General Meeting and meet the requirements of the Corporations Act 2001 and the Registered Clubs Act 1976. The Constitution of the Club requires subject to the provisions of the Registered Clubs Act a Member of the Club, whether or not he/she is a Member of the Board or of any Committee of the Club, shall not be entitled under the Rules of the Club or otherwise, to derive directly or indirectly, any profit, benefit, or advantage from the Club that is not offered equally to every Full Member of the Club – provided that nothing shall be construed as to prevent the allowance of Honorariums as determined by the Board to any Member in respect of special honorary services rendered to the Club and such Honorarium shall be approved in advance by the Members of the Club at a General Meeting. It is at the discretion of each Director as to whether they accept the Honorarium. The CEO has undertaken an Independent Review of the Honorariums for the Directors and recommended that the Honorariums remain the same as the previous year for 2022. 4

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

The adoption of this resolution by the Members, meet the requirements of our Constitution the Corporations Act 2001 and the Registered Clubs Act 1976. Ordinary Resolution No 2 - Non Monetary Benefits of Directors Pursuant to the Registered Clubs Act 1976 the Members hereby approve the payment or reimbursement of expenditure, at the expense of the Club, during the period preceding the next Annual General Meeting for the provision of: (a) The reasonable cost of light snacks during Board meetings, (b) Reasonable expenses incurred in relation to such other duties including entertainment of special guests to the Club and other promotional activities performed by Directors which activities and the expenses are approved by the Board before payment or reimbursement is made on the production of proper documentation of expenditure, (c) Reasonable expenses for the holding of an annual end of term office dinner for the Board of Directors, their special guests & dignitaries, (d) The reasonable cost of attending the General Meetings and Training Seminars of Clubs NSW, Clubs Directors Institute and any other recognised association within the Registered Clubs Industry as may be determined by the Board from time to time, (e) The reasonable cost of Director’s attending seminars, lectures, trade displays, structured study tours, fact finding tours and other similar activities as may be determined by the Board from time to time, (f) Directors & Officers Insurance Policy, (g) The reasonable cost of apparel (for example monogramed shirt or blouse) as required for the use of Directors when representing the Club, (h) The reasonable cost of an electronic device (for example laptop computer or tablet or similar device) being made available in respect of their duties as directors of the Club, (i)

he reasonable cost of Director’s membership of professional associations T such as “NSW Club Director’s Institute”,

The Members acknowledge that the benefits above are not available to Members generally, but only those Members who are Director’s of the Club. Explanatory Note Director’s out-of-pocket expenses reasonably incurred while carrying out their duties can already under the law be authorised by the Board. However, the resolution in the interests of transparency makes disclosures of some of the types of expenses likely to be incurred. To the extent that this resolution involves the payment of out-of-pocket expenses, this resolution will acknowledge that expenses of these types proposed are PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

prima facie acceptable and there is or will be a current resolution of the Board authorising the payment of expenses of that kind before they are paid. A profit, benefit, or advantage that is not offered equally to every Full Member and able to be authorised as a non-monetary- benefit is still permissible if the Independent Liquor and Gaming Authority determines that it is reasonable in the circumstances. This resolution seeks to acknowledge the types of profit, benefit, or advantage that are regarded by the Members as reasonable in the circumstances. The amount of Director expenses shown in the Club’s accounting records for 2021 is $2,386.00 (2020 $8,495.00). The adoption of this resolution by the Members, meet the requirements of the Clubs Constitution the Corporations Act 2001 and the Registered Clubs Act 1976. Ordinary Resolution No 3 - Non Monetary-Specific Bowling Member Benefits & Others Pursuant to the Registered Clubs Act 1976 the Members hereby approve the payment or reimbursement of expenditure, at the expense of the Club, & at the discretion of the Board during the period preceding the next Annual General Meeting for the provision of: (i) (a) Reasonable sum towards cost of travel, accommodation and allowances, if required, for successful pennant teams involved in State Pennant Finals, (b) Reasonable sum towards assisting with the provision of a supporters Coach or similar to attend successful pennant team State Pennant Finals, (c) Reasonable sum towards cost of travel accommodation and allowances for bowlers who represent the Club in State & National Final Events, (d) Reasonable facilities and services in relation to bowling activities of the Sub Clubs, (ii) The Members acknowledge that the benefits (a) – (d) above are not available to Members generally, but only those Members who are Members of Bowling Members of the Club however all Members are entitled to utilise the Clubs facilities & services. (iii) The Club in it’s commercial dealings from time to time will engage in corporate sponsorships and trade suppliers and/or service providers which may result in the Club being entitled to benefits. These benefits may be in the form of function invitations, dinners, events, sporting matches or the like. The Board is willing, bound or required to pass on these benefits to our Members where appropriate & practical. The Members acknowledge that it is not always possible to pass on these benefits equally amongst the Members & that the Board will at all times have to determine which benefits of this nature will be offered to Members equally or otherwise in the best interest of the Club in it’s corporate capacity. 6

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Explanatory Note The provision of benefits by the Club not in the form of money or cheque being provided to a specific class of Member generally is only permissible with a current authorisation from a General Meeting. A profit, benefit, or advantage that is not offered equally to every Full Member and able to be authorised as a non-monetary-benefit is still permissible if the Independent Liquor and Gaming Authority determines that it is reasonable in the circumstances. This resolution seeks to acknowledge the types of profit, benefit, or advantage that are regarded by the Members as reasonable in the circumstances. The amount of costs incurred as shown in the Club’s accounting records for State Pennant Finals for 2021 $15,025.00 (2020 $19,761). The trading statement on Bowls as shown in the accounting records reveals a loss of $254,468.00 for 2021 (2020 $220,804.00). The adoption of this resolution by the Members, meet the requirements of the Clubs Constitution Corporations Act 2001 and the Registered Clubs Act 1976. Ordinary Resolution No 4 - Honorarium of Committee of the Club –Sub Clubs Pursuant to the Registered Clubs Act 1976 the Members hereby authorise for the period preceding the next Annual General Meeting at the expense of the respective unincorporated subsidiary Clubs namely the Men’s Bowling Club & Women’s Bowling Club the payment of the following honorariums as recommended by the Board, in recognition of services rendered by the committee of those Sub Clubs. Men’s Committee: President

$2,000.00

Secretary

$1,500.00

Treasurer

$1,500.00

The remaining (5) Committee Members to receive $1,000.00 each. Women’s Committee: President

$1,500.00

Secretary

$1,000.00

Treasurer

$1,000.00

The remaining 8 Committee Members to receive $200.00 each. All honorariums are to be paid pro rata to their service provided the services are actually rendered. All honorariums are to be considered all inclusive. PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Explanatory Note An Honorarium may only be paid where approved by a resolution passed at a General Meeting of the Club Ltd. The adoption of this resolution by the Members will confirm the amount paid as Honorariums at the expense of the respective Sub-Club of the Club in recognition of special honorary services rendered to the Sub-Club for the period preceding the next Annual General Meeting and meet the requirements of the Corporations Act 2001 and the Registered Clubs Act 1976. The Club lawyers have advised that even if there is no strict need to obtain approval for these Honorariums, modern corporate governance would require that all Honorariums paid by the Sub Clubs be approved in accordance with the Registered Clubs Act. Accordingly, the Board has submitted this resolution to satisfy corporate governance standards and as additional transparency. The Clubs Constitution requires a Member of the Club, whether or not he/she are a Member of the Board or of any Committee of the Club, shall not be entitled under the Rules of the Club or otherwise to derive directly or indirectly, any profit, benefit, or advantage from the Club that is not offered equally to every Full Member of the Club provided that nothing shall be construed as to prevent the allowance of Honorariums as determined by the Board to any Member in respect of special honorary services rendered to the Club and such Honorarium shall be approved in advance by the Members of the Club at a General Meeting. It is at the discretion of each Committee member as to whether they accept the Honorarium. The CEO has undertaken an Independent Review of the Honorariums for the Sub Committee’s and recommended that the Honorariums remain the same as the previous year for 2022. All Honorariums are at the recommendation of the respective Sub-Club Committees. It is essential to remember that all monies held by the Sub-Clubs remain the property and responsibility of Club Ltd. The adoption of this resolution by the Members meets the requirements of our Constitution the Corporations Act 2001 and the Registered Clubs Act 1976.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Ordinary Resolution No. 5 – Non-Monetary Benefits for Sub Club Committees. Pursuant to the Registered Clubs Act 1976, the Members hereby authorise, for the period preceding the next Annual General Meeting, at the expense of the respective unincorporated Subsidiary Clubs of the Club (namely the Port Macquarie City Men’s Bowling Club and the Port Macquarie City Women’s Bowling Club) the payment of, or reimbursement of, expenditure reasonably and properly incurred in carrying out Sub-Club activities by Committee Members, subject to the discretion of the Board, of the following:  Reasonable costs of travel for Committee Members attending District and Zone meetings.  Reasonable expenses for the conduct of an end of term of office dinner for the Sub Club Committees and special guests.  Reasonable cost of apparel (e.g., monogrammed shirt) as required for the use by Committee Members when carrying out their duties. The Members acknowledge that the benefits above are not available to Members generally, but only to those Bowling Members who are Committee Members of the respective Sub-Clubs. Explanatory Note The provision of benefits not offered equally to every Full Member of the Club, not in the form of money or cheque, being provided to a specific class of Member is only permissible with a current authorisation from a General Meeting. The adoption of this Ordinary Resolution authorises for the provision of certain benefits, at the discretion of the Board, to Committee Members of the Sub-Clubs. Following advice from the Club’s lawyers, it is essential to remember that all monies held by the Sub-Clubs remain the property and responsibility of Club Ltd. Ordinary Resolution No. 6 – Sub Club Benefits for Bowling Members. Pursuant to the Registered Clubs Act, 1976, the Members hereby authorise, for the period preceding the next Annual General Meeting, at the expense of the respective unincorporated subsidiary Clubs (namely the Port Macquarie City Men’s Bowling Club and the Port Macquarie City Women’s Bowling Club) the payment of, or reimbursement of, expenditure reasonably and properly incurred in carrying out bowling activities, at the discretion of the Board, for the following:  Cash payments at the recommendation of the Sub-Club Committee for Bowling Members who are championship winners.  Sundry benefits for Bowling Members, who do not receive an Honorarium, may be recognised for their services in assisting in the running of Sub-Club activities by way of Member Reward points. Such benefits are to be at the discretion of the CEO. This includes catering, working bees, maintenance, umpiring, and marker duties. PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

 Reasonable contribution towards the cost of food and beverages for Bowling Members and Guests at special events.  Reasonable contribution towards the cost of travel expenses for Pennant and State Championship events for Bowling Members. The Members acknowledge that these benefits are not available to Members generally but only those Members who are Bowling Members of the Club Ltd. Explanatory Note The provision of benefits not offered equally to every Full Member of the Club, not in the form of money or a cheque, being provided to a specific class of Member is only permissible with a current authorisation from a General Meeting. The adoption of this Ordinary Resolution authorises for the provision of certain benefits, to be provided subject to the discretion of the Board and or the CEO. Following advice from the Club’s lawyers, it is essential to remember that all monies held by the Sub Clubs remain the property and responsibility of Club Ltd.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

CLUB LIMITED PATRON MEMBER Robert Langham CLUB LIMITED LIFE MEMBERS Ron Limbert*, Bob Kane*, Neville Schwartz, Rex Holihan MEN’S BOWLING CLUB LIFE MEMBERS Mervyn Green*, Reg Lucas, Noel Paterson, Alan Ison*, Terry Schollum WOMEN’S BOWLING CLUB LIFE MEMBERS Norma Schwartz, Frances Green, Robyn Biddle, Shirley Devine

PORT CITY BOWLING CLUB IN THE COMMUNITY Port City Bowling Club is proud to support community, sporting, social and charity groups – your local supporting our locals! Mixed Probus Club of the Hastings

Port Macquarie Landcare Group Inc.

Sailability NSW inc. Port Macquarie Branch

Linked Community Services

Port Macquarie Senior Computer Group Inc.

Port Macquarie Tennis Club

Port City Travelling Bowlers Hastings Public School Port Macquarie Animal Welfare Service Inc. Hastings Valley Vikings Rugby Union Port Macquarie Blue Water Fishing Club News Watch Discussion Group Hastings Fly Fishers Port Macquarie Heritage Car Club Port City Leagues Magpies Cricket Club

Rotary Club of Port Macquarie Sunrise Zone 8 RSL Bowlers Association Port City Men’s Bowling Club Port City Women’s Bowling Club Probus Club of Port Macquarie Inc. Mid North Coast Retired Police Association Gentle Exercise Nations Seniors Australia Ltd.

Make A Difference Port Macquarie Cerebral Palsy Alliance Heart Health NSW Inc. Willing & Able Foundation Ltd. Port Macquarie Neighbourhood Centre Autism Spectrum Australia (Aspect) Port Macquarie Community Preschool Surf Life Saving Mid North Coast

A.I.R Investor Education

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

CHAIRMEN’S REPORT Chris King I hope this report meets you safe and well. At the outset, I would like to pass on, on behalf of the Board our most sincere condolences to the family and friends of members who have passed away over the last 12 months. This year we continued to endure the COVID-19 pandemic, but we have so far managed through it and congratulations to everyone that has been involved in our wonderful Club. Particularly during the restrictions when our primary focus has been on ensuring the health and hygiene of our Staff, Members and Guests while minimising the financial impact in terms of managing our expenses and protecting our financial holdings. It is important that we all remain vigilant to avoid any cases being contracted locally and being shut down again. During these unprecedented times, the Board also continued to advocate for your Clubs future through regular liaison with stakeholders and regulators, including ClubsNSW, our Local Government Member, and other Clubs. Even with these challenges, our focus is still about consolidating on the extension and refurbishment and carrying out due diligence on other options, including development opportunities that will help ensure the future and growth of our Club. Particularly, those areas that have the most potential to generate diversified and ongoing revenue. 12

These plans include the extension of our Drift Café which is in the final stages of approval and expected to commence shortly. This will provide an outside al-fresco dining facility with some 80 additional seats and a working kitchen environment that will meet our needs well into the future. To better service this area the Board also approved and extension of the Drift Bar and the installation of an additional coffee and cake bar adjacent to the lounge. As I have previously reported this extension will mean taking out 3-4 rinks of the current No. 1 Green. As a result of your feedback and consultation with other Clubs and bowling green experts the Board reviewed their decision to install a synthetic green on the remainder of the No. 1 Green and the existing smaller green. Consequently, the Board approved the retention of a grass green for this consolidated area. Construction is expected to commence in Spring. During the year we lost the upstairs Eastern Tiger Restaurant who were unable to recover financially from the impact that the COVID-19 pandemic had on their business model. This has provided us with a temporary venue for the Drift Café while construction is underway on the extension of the Café downstairs. Planning is also underway to explore future uses of this area once construction is completed. Including function areas and other food and beverage options. The Board is also

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

considering the installation of another elevator to assist patrons accessing in this area and is currently sourcing designs and planning approvals. This year has also seen the replacement of the older section of the Club’s roof and air conditioning ducts, the construction of the Adrift Bar and BBQ, redesigning of the gaming room floor and planning for is expansion, refurbishment of the entertainment area. Planning has also commenced on improving the internal ceiling, which has water damage and requires ongoing maintenance. We now have 13,936 Members as of 31st May 2021 and thanks to their support and good management I am proud to report that the Club managed to post an audited trading profit of $1,886,894 in the past year, which is a fantastic outcome under the circumstances. Understandably, our overall visitor numbers have decreased due to COVID-19. I can also report that our fixed loan currently stands at just over $500k. However, our goal is still to continue to reduce and eliminate this loan during the upcoming financial year and to minimise any future borrowings while continuing to satisfy the needs of our members. Including utilising our financial holdings, which currently stand at circa $4.0m, to undertake the roof replacement and the Drift extension without the need for any borrowings. While doing this we need to continue building on our brand and our vision as being a locally owned family entertainment venue with excellent bowling facilities. Your Board is committed to continually reviewing and improving our products and services, examining opportunities to diversify our offering, improve our revenue stream, look at other revenue opportunities and ensure that we continue to meet if not

exceed your expectations. While our real estate holdings may put us in a strong position to pursue hotel and residential accommodation as a possible line of alternative income the timing of this has been reviewed in terms of our 10-year master plan. However, your Board continues to keep this on its radar and in this regard is currently working with a property consultant to explore various options for our property while building on our financial holdings. We will keep you informed as we continue to explore this possibility. Feedback I continue to receive is that our members are very proud of their Club, particularly our Drift Café, which is booked out most evenings. Visitors and other organisations also continue to acknowledge our Club and its staff. However, we always welcome your suggestions on how we can improve. The suggestion box, which we consistently review, is one way you can do this. While doing the above your Club has and will continue to support community groups though donations and the grants program. This year we continued our strategic partnership with Willing & Able Foundation. The Club provided more than $100,000 in category 1 & 2 grants including $15,000 to Willing & Able Foundation. The Club will also continue to sponsor and support local sporting groups, including the Hastings Valley Vikings. These sponsorships have proved to be successful with all parties benefiting from the arrangement. Over the last year, the Board continued to pay particular attention to ensuring the Club had good corporate governance in place. Including implementing the initiatives outlined in the Club’s strategic plan, developing, and reviewing key

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

policies and placing greater rigour around risk and audit compliance. The Bowls Coordinator in collaboration with the Men’s and Women’s Bowling Clubs have again done a fantastic job in putting on events to encourage new Members and increasing participation levels, including events that support very worthy causes. Congratulations also to the Men’s Grade 1 team and the Women’s Grade 1 Team for reaching the State Pennant Finals. I would also like to thank the Travelling Bowlers for their contribution to the Club and the work that they do to support charities and other worthy causes. The Board is proud of our Bowls history and will continue to undertake and explore every opportunity in collaboration with both Sub Clubs to ensure this tradition is continued. We will continue to consider opportunities to reduce maintenance costs, increase bowler participation numbers, provide more game options to attract social members and visitors, project the number of greens that will be required over the next 10 years, assess the types of bowls surface best suited to our environment and which greens are best covered to maximise their usage. While we continue with our plans for No. 1 Green, as mentioned earlier, I welcome any suggestions you may have in this regard. I would like to take this opportunity to thank our CEO David Gearing who joined us in September 2020, David has proved to be a valuable addition to our Club. His previous experience as well as his initiative, drive, professionalism and commitment to our Staff and Members contributed greatly to our successful year. I would also like to thank Glen Stewart, our Operations Manager who acted as 14

CEO up until David’s commencement. Glen continues to provide valuable support and his knowledge and experience is greatly appreciated. The level of service from Staff to our Members continues to be at the highest level and the recognition they consistently receive is well deserved. I would also like to thank our auditors, Northcorp and pleased to report that we have received an unqualified audit report for the past 12 months. I welcome all of our new Members and thank all our loyal Members for supporting us over the past year, especially during these uncertain times. I am sure you will continue to enjoy your Club as we endeavour to achieve our vision of being the best bowling and entertainment venue on the Mid North Coast. In closing it would be remiss of me not to thank my Board of Directors for the support they have given me and the results they have achieved this year. A lot of time and effort goes into being a Director, particularly during the COVID-19 restrictions and the fact we have managed to come out of this so well and post a resounding profit is testament to their input. I particularly would like to thank Mark Parry who has continued to serve as Deputy Chairman, although being appointed earlier this year to the position of CEO at Urunga Bowling Club. To finish my report, I would like to thank fellow Board Members, Mick Hayes and Ralph Gibbons for their contribution to the Club during their time on the Board and wish them the best of luck if they choose to re-elect. Kind regards C K King Chairman

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

CEO’S REPORT David Gearing Dear Members, It is with great pleasure that I present my first report as Chief Executive Officer at Port Macquarie City Bowling Club Ltd. At the outset, I would like to thank each and everyone of you for your ongoing support of the Club throughout the past 12 months. Following my appointment by the Board to the position of CEO I was thrilled to be leaving Melbourne’s long lock down periods and to move to the beautiful city of Port Macquarie. The Members of the Club and the management and staff were so accommodating and made me feel part of the team from the outset. The feeling of being a locally owned Club is really what sets the Port City Bowling Club apart and what makes it so special. From September 2020 to now the Club has made some exciting changes and improvements that have been positively received. Such changes include upgrading the gaming room with spacing our machines and the addition of some greenery. We have also upgraded the BBQ area with a new fully enclosed bar and BBQ area, which we have formally dubbed the ‘Adrift Bar’. This has been popular through the warmer months and we are really looking forward to testing the Adrift BBQ and Bar this summer. One of the less glamorous but just as essential tasks that we have undertaken over the past 12 months was the replacement of

the Clubhouse roof, which I am pleased to report has now been completed. One of the highlights for myself on commencement with the Club is the support that I have received from the Board, together we have developed a full strategic plan which will see the Club achieve its full potential. Unfortunately, Eastern Tiger Restaurant did not see out the year and prematurely ended their lease via mutual agreement. I wish Restaurant the very best with their future endeavours. However, I believe the upstairs area of the Club to be one of, if not the best areas in Port Macquarie and I am excited to be able to start with a blank canvas and paint a masterpiece. The downstairs of the Club will also be looked at to bring it up to scratch with areas such as Drift and the gaming room. The need for a coffee style bar is also being looked at to service the needs of our patrons in the entertainment lounge. We are also looking at the space between the new Drift extension and the newly established No. 1 Green as a potential outdoor entertainment area for all ages. These upgrades to the Club are currently being discussed with our design teams to ensure best usage for the Club and its Members and guests. Financially, 2021 has been a record trading year for the Club and I am pleased to report the following excellent financial results. Our EBITDA profit for

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

the Club was $3,126,123 with a net profit of $1,886,894. The net profit shows an increase on the previous year by an unbelievable 3,500%. The total revenue for the Club was $13,494,127 which was an increase on the previous year of 27%. The main trading areas are summarised below: 

Bar Revenue - $2,892,347 up 6% on the previous year



Café Sales - $2,059,146 up 28% on the previous year



Gaming Revenue - $6,962,085 up 38% on the previous year



Keno Revenue - $139,594 up 24% on the previous year



TAB Commissions - $41,922 down 2% on the previous year

I look forward to the renovation of the Drift Café starting on 2 August as this will provide a further 60 seats and hopefully alleviate the disappointment of Members and guests that cannot access Drift to dine with us. Unfortunately, our current dining numbers are so restricted due to the size limitations of the kitchen. Upon completion of the Drift extension, I am confident that we will see a significant uplift in revenue across all areas of the Club. We will continually review our food and beverage offerings at the Club ensure that we are able to cater to the growing population of Port Macquarie and surrounds. Memberships have decreased during the year with a summary of current memberships outlined below. These number have understandably been affected by the constant COVID-19 outbreaks and uncertainty around travel that have been experienced throughout the year. The Member numbers for the respective categories as at the end of June are as follows: 16



1 Year Memberships – 4,024



3 Year Memberships – 9,561



Life Memberships - 11



Men’s Bowling Memberships - 328



Women’s Bowling Memberships - 120

Lawn Bowls at Port City saw some excellent events and results across the year. The Men’s and Women’s number one Pennant Teams have made it through to the State Finals and I would like to wish them all the best with their finals. Three teams made the State Championship Finals, the Men’s Bowling Club Triples, Women’s Bowling Club Pairs, and the Women’s Bowling Club Fours. Well done to those three teams. The Bowls Premier League National titles saw three Port City Men’s finalists at the tournament. Well done also to these three Bowlers. The Club also hosted the Australian Blind Bowlers Championships that was simply amazing to watch. The tournament was a huge success. Unfortunately, we have had to postpone the Paul Webster Memorial Grade 6 and 7’s due to the COVID-19 outbreak in Sydney. Finally, I would like to take this opportunity to thank the Chairman, Chris King, and his fellow Directors for their ongoing support. Also, I would like to thank Glen Stewart and the rest of the management team including and the amazing staff that have given nothing but their best efforts in the day to day running of the Club. Without the team of great staff, the Club would not be what it is today!

David Gearing Chief Executive Officer

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2021

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

DIRECTORS' REPORT

Your Directors present their report on the Company for the financial year ended 31 May 2021. Directors The names of the Directors in office at any time during or since the end of the financial year are: Christopher KING Mark PARRY Wayne EVANS Michael HAYES Jeff PATTINSON Mick GARRIHY Ralph GIBBONS Paul BRADY Judy SCHOLZ

(Appointed 05/09/2020) (Appointed 05/09/2020) (Resigned 05/09/2020) (Resigned 05/09/2020)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Short-Term Objectives The short-term objectives of the Company are to: •

Provide support for community groups and to provide a place for these groups to meet;

•

Sponsor and support local sporting groups and community organisations;

•

Continue to promote and improve member facilities;

•

Provide entertainment, food and beverages for the members and visitors at reasonable prices.

Long-Term Objectives The long term objectives of the Company are to: •

Increase the Club's membership;

•

Extend, renovate and improve the Club's facilities;

•

Improve the Club's financial position;

•

Promote the Club as the hub of the community that brings members and guests together;

•

Provide for and promote the game of lawn bowls.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

DIRECTORS' REPORT Strategies Adopted for Achieving Objectives To achieve the objectives of the Company the following strategies have been adopted: •

Retain and engage suitably qualified and experienced employees to provide the best possible service and maintain the Club's facilities;

•

Provide entertainment, bowls tournaments and promotions to attract patronage to the Club;

•

Offer high quality, reasonably priced meals and beverages;

•

Conduct promotions throughout the year for the benefit of members and their guests;

•

Annual development of financial budgets and monthly monitoring of financial performance and financial position to ensure the Club operates within its financial capabilities.

Principal Activities The principal activities of the Company during the financial year was the conduct of a licensed Bowling Club. No significant change in the nature of this principal activity occurred during the financial year. Means by which Principal Activities Assisted in Achieving the Company's Objectives The profit and cash flows generated from the Company's principal activities were utilised in achieving the Company's objectives. Key Performance Measures The Company measures and monitors performance by comparing actual monthly results to budgets and past performance. The Company reviews key performance indicators such as membership numbers, gross profit margins and trading results of key income areas such as bar, bistro and poker machine operations. Members' Guarantee Port Macquarie City Bowling Club Limited is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $20 towards meeting any outstanding obligations of the Company. At 31 May 2021 there were 13,596 members with a collective liability of $271,920. Auditor's Independence Declaration A copy of the lead auditor's independence declaration as required under section 307C of the Corporations Act 2001 has been received and is included in this financial report. Core and Non-Core Property Core property is defined as any real property owned by the Club that comprises the defined premises of the Club or any facility provided by the Club for the use of its members and their guests. Core property of the Club consists of the land occupied by the Clubhouse and bowling greens at 4 Owen Street and the carpark on the corner of Owen and Church Streets, Port Macquarie New South Wales. Non-core property of the Club means any real property owned by the Club that is not core property. Non-core property consists of 7-9 Church Street, Port Macquarie New South Wales. 2

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Judy SCHOLZ

Number attended

Eligible to attend

Number attended

Special Board Meetings

Eligible to attend

Number attended

Remuneration Committee

Eligible to attend

Number attended

Building Committee

Eligible to attend

Number attended

Constitution and By Laws Committee

Eligible to attend

Number attended

Sub-Club Meetings

Eligible to attend

Number attended

Executive Committee

* Due to COVID-19 circumstances, business relating to the Policy Committee and the Audit, Risk and Corporate Governance Committee was addressed at Directors’ Meetings during the year.

Mick GARRIHY*

Paul BRADY

Jeff PATTINSON*

Ralph GIBBONS*

Michael HAYES

Mark PARRY

Wayne EVANS

Christopher KING*

Eligible to attend

Directors' Meetings

During the financial year, 40 meetings of Directors (including committees of Directors) were held. Attendances by each Director during the year were as follows:

Meetings of Directors

DIRECTORS' REPORT

ABN 71 001 056 211

Port Macquarie City Bowling Club Limited

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

DIRECTORS' REPORT Information on Current Directors Christopher KING Qualifications

Experience Special Responsibilities

Mark PARRY Qualifications

Experience Special Responsibilities

Wayne EVANS (OAM) Qualifications

Experience Special Responsibilities

Commerce Certificate Diploma, Certificate III in Corporate Governance, Justice of the Peace, Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed. Director Port City Bowling Club 7 years, Past member of 3 Boards in Western Sydney, Vice President Port Macquarie Blue Water Fishing Club, President Willing & Able Foundation, Director Linked Community Services. Chairperson of the Board of Directors Executive Committee Risk, Audit and Corporate Governance Committee Strategic Planning Committee Policy Committee Remuneration Committee Bowls Committee Disciplinary Committee, Whistle-blower Committee

Registered and Licensed Club Manager, Public Practicing Accountant as a senior manager for 15 years, Owner and Operator of the Federal Hotel Temora, Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed. Director of Port Macquarie City Bowling Club 5 years. Deputy Chairperson Executive Committee Remuneration Committee Strategic Planning Committee

Retired Magistrate, Non practising Barrister, Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed. Director of Port Macquarie City Bowling Club for 6 years, Director of Port Macquarie Race Club Disciplinary Controller Workplace, Health and Safety Committee Strategic Planning Committee Constitution and By Laws Committee Whistle-blower Committee

4 PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

DIRECTORS' REPORT Information on Current Directors (continued) Michael HAYES Qualifications

Experience Special Responsibilities

Jeff PATTINSON Qualifications

Experience

Special Responsibilities

Ralph GIBBONS Qualifications Experience

Special Responsibilities

Retired Certified Practising Accountant (CPA), Registered Company Auditor, Registered Tax Agent, Member of the Club Directors Institute, Justice of the Peace, CDI Mandatory Courses and Clubs NSW Masterclasses on Strategic Planning and Corporate Governance completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed. Director of Port Macquarie City Bowling Club for 7 years, Auditor, Advisor and Officer Holder to numerous registered clubs, sporting associations and charities. Board Assessments Executive Committee Member Remuneration Committee Strategic Planning Committee Constitution and By-Laws Committee

Diploma Health Administration (DipHA), Certificate Hospital Administration (CHA), Fellow Australian Institute of Company Directors (FAICD), Company Directors Diploma (AICD), Justice of the Peace (JP),Member Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed. Director of Port City Bowling Club 4 years, 42 years Hospital / Health Administration, 8 years General Manger Port Macquarie Base Hospital, Kempsey and Wauchope Hospitals and Community Health Services, Chairman Holiday Coast Credit Union for 10 years, Member Club Directors Institute CDI Mandatory Courses completed. Policy Committee Audit, Risk and Corporate Governance Committee Strategic Planning Committee Remuneration Committee

Member of Club Directors Institute, CDI Mandatory Courses completed, Responsible Service of Alcohol (RSA) and Responsible Conduct of Gambling (RCG) Competency Courses completed. Director of Port City Bowling Club 1 year, Chief Executive Officer (CEO) of several Registered and Licensed Clubs for a combined tenure of greater than 25 years, Director of a Sydney based sporting Club and successfully owned and leased Hotels. Policy Committee Building Committee Bowls Committee Strategic Planning Committee Constitution and By-Laws Committee

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

STATEMENT OF COMPREHENSIVE INCOME For the Year Ended 31 May 2021 2021

Note 2

Revenue Changes in inventories Inventories purchased Advertising and promotion Bingo and raffle prizes Bowls expenses Depreciation Donations Electricity and gas Employee benefits expense Entertainment Finance costs Insurance Other poker machine expenses Poker machine supplementary tax Rates and taxes Repairs and maintenance

3 3

Other expenses

2020

13,494,127

10,632,715

(1,025) (1,849,217) (1,079,093) (53,469) (57,596) (1,189,385) (134,042) (234,609) (3,707,622) (187,656) (50,718) (187,272) (135,483) (1,367,170) (151,674) (571,019)

(23,661) (1,600,260) (924,173) (110,208) (71,039) (1,189,172) (150,453) (249,442) (3,303,922) (277,217) (53,168) (154,658) (148,750) (948,481) (196,178) (515,807)

(650,183)

(663,845)

(11,607,233) (10,580,434) Profit before income tax Income tax expense

1,886,894 -

52,281 -

1,886,894

52,281

Other comprehensive income for the year

Total comprehensive income for the year

1,886,894

52,281

Profit attributable to members of the Company

1,886,894

52,281

Total comprehensive income attributable to members of the Company

1,886,894

52,281

1(a)

Profit for the year

The accompanying notes form part of these financial statements.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

STATEMENT OF FINANCIAL POSITION As at 31 May 2021

Note

2021

2020

ASSETS Current assets Cash and cash equivalents Trade and other receivables Inventories Other assets

4,819,178 157,105 72,002 19,679

1,631,275 238,558 73,027 27,443

5,067,964

1,970,303

84,000 16,210,828

84,000 16,281,211

Total non-current assets

16,294,828

16,365,211

TOTAL ASSETS

21,362,792

18,335,514

1,381,210 725,042 128,268 401,062

572,755 723,458 120,442 319,992

2,635,582

1,736,647

551,480 24,493

305,400 29,124

4 5 6 7

Total current assets Non-current assets Intangible assets Property, plant and equipment

8 9

LIABILITIES Current liabilities Trade and other payables Borrowings Other current liabilities Provisions

10 11 12 13

Total current liabilities Non-current liabilities Borrowings Provisions

11 13

Total non-current liabilities

575,973

334,524

TOTAL LIABILITIES

3,211,555

2,071,171

NET ASSETS

18,151,237

16,264,343

EQUITY Retained earnings

18,151,237

16,264,343

TOTAL EQUITY

18,151,237

16,264,343

The accompanying notes form part of these financial statements.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

STATEMENT OF CHANGES IN EQUITY For the Year Ended 31 May 2021

2021

Balance at 1 June 2020

Retained Earnings $ 16,264,343

Total $ 16,264,343

Profit attributable to members of the Company Other comprehensive income

1,886,894 -

Total comprehensive income for the year

1,886,894

Balance at 31 May 2021

18,151,237

Retained Earnings $ 16,212,062

Total $ 16,212,062

52,281 -

2020

Balance at 1 June 2019 Profit attributable to members of the Company Other comprehensive income Total comprehensive income for the year Balance at 31 May 2020

52,281

16,264,343

The accompanying notes form part of these financial statements.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

STATEMENT OF CASH FLOWS For the Year Ended 31 May 2021

Note Cash Flows from Operating Activities Receipts from customers Payments to suppliers and employees Interest received Interest paid

2021

2020

14,783,313 11,543,282 (11,062,870) (10,543,674) 874 1,586 (50,718) (53,168)

Net cash provided by (used in) operating activities

3,670,599

948,026

Cash Flows from Investing Activities Purchase of property, plant and equipment

(730,360)

(384,642)

Net cash provided by (used in) investing activities

(730,360)

(384,642)

Cash Flows from Financing Activities Proceeds from borrowings Repayment of borrowings

787,643 (539,979)

94,750 (684,505)

Net cash provided by (use in) financing activities

247,664

(589,755)

3,187,903 1,631,275

(26,371) 1,657,646

4,819,178

1,631,275

Net cash increase (decreases) in cash and cash equivalents Cash and cash equivalents at beginning of financial year Cash and cash equivalents at end of year

The accompanying notes form part of these financial statements.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 The financial report is for Port Macquarie City Bowling Club Limited as an individual entity, incorporated and domiciled in Australia. Port Macquarie City Bowling Club Limited is a Company limited by guarantee. The financial statements were approved and authorised for issue on 13 July 2021 by the Directors of the Company. Note 1

Summary of Significant Accounting Policies

Basis of Preparation The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied, unless otherwise stated. The financial statements, except for the cash flow information, 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. The amounts presented in the financial statements have been rounded to the nearest dollar. Accounting Policies (a)

Income Tax

The Company has been granted an exemption from income tax under Section 50-45 of the Income Tax Assessment Act 1997. The exempt status of the Company applies indefinitely or until such time as a change in circumstances warrants a review of the exempt status. (b)

Inventories

Inventories are measured at the lower of cost and net realisable value. (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are measured on the cost basis less accumulated impairment losses and accumulated depreciation for buildings. Plant and equipment Plant and equipment are measured on the cost basis less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised in profit or loss. An assessment of recoverable amount is made when impairment indicators are present (refer to Note 1( g) for details of impairment).

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 1

Summary of Significant Accounting Policies (continued)

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets, including buildings and capitalised leased assets but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the Company commencing from the time the asset is held ready for use. Depreciation is recognised in profit or loss. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Buildings and freehold improvements Plant and Equipment

Depreciation Rate 2.5 - 20% 10 - 20%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss in the period in which they arise. (d)

Intangible Assets

Poker machine licences Poker machine licences are recognised at cost of acquisition. Poker machine licences are tested annually for impairment and carried at cost less accumulated impairment losses. (e)

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (f)

Financial Instruments

Initial Recognition and Measurement Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date the Company commits itself to either the purchase or sale of the asset. Financial instruments (except for trade receivables) are initially measured at fair value plus 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. Trade receivables are initially measured at the transaction price. 13

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 1 (f)

Summary of Significant Accounting Policies (continued) Financial Instruments (continued)

Classification and Subsequent Measurement Financial liabilities Financial liabilities are subsequently measured at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or financial liability, that is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition. Financial assets Financial assets are subsequently measured at amortised cost. Financial assets comprising cash and cash equivalents, trade and other receivables and interest bearing deposits are subsequently measured at amortised cost as they meet the following conditions: •

the financial assets are managed solely to collect contractual cash flows; and

•

the contractual terms within the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates.

Derecognition Derecognition of financial liabilities A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability, is treated as an extinguishment of the existing liability and recognition of a new financial liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. Derecognition of financial assets A financial asset is derecognised when the Company's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred. All of the following criteria need to be satisfied for derecognition of a financial asset: •

the right to receive cash flows from the asset has expired or been transferred;

•

all the risks and rewards of ownership of the asset have been substantially transferred; and

•

the Company no longer controls the asset.

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. Impairment of Financial Assets The Company recognises a loss allowance for expected credit losses on financial assets that are measured at amortised cost. 14

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 1 (f)

Summary of Significant Accounting Policies (continued) Financial Instruments (continued)

Impairment of Financial Assets (continued)

Recognition of expected credit losses in financial statements At each reporting date, the Company recognises the movement in the loss allowance as an impairment gain or loss in the statement of comprehensive income. The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to that asset. (g)

Impairment of Non-Financial Assets

At the end of each reporting period, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is recognised in profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for intangible assets with indefinite useful lives. Poker machine licences Poker machine licences have been determined to have indefinite useful lives as the Company has no intention to sell poker machine licences.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 1

(h)

Summary of Significant Accounting Policies (continued)

Employee Benefits

Provision is made for the Company'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 settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related oncosts. Employee benefits payable later than one year 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 not satisfy vesting requirements. Contributions are made by the Company to employee superannuation funds and are charged as expenses when incurred. (i)

Provisions

Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period. (j) Trade and Other Payables Trade and other payables are carried at amortised cost and represent the liabilities for goods and services received by the Company during the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Trade and other payables are initialy measured at fair value and subsequently measured at amortised cost using the effective interest method. (k)

Revenue Recognition

Revenue is recognised when control of the goods and services has transferred to the customers. For such transactions, this is the point in time when the goods are delivered to the customers or the services are received by customers. Interest revenue is recognised using the effective interest method. Receivables are recognised when items are delivered or services received, as at this point consideration is unconditional since only time needs to pass before payment of that consideration is due. (l)

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 1

(m)

Summary of Significant Accounting Policies (continued)

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities, which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers. (n)

Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. (o)

Critical Accounting Estimates and Judgements

The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. Key Estimates - Impairment The Company assesses impairment at the end of each reporting period by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations which incorporate various key assumptions. No impairment has been recognised in respect of assets at reporting date. Key Judgements - Provisions Included in provisions is an amount provided for poker machine bonus points. The amount provided represents the aggregate balance of poker machine bonus points accrued as at 31 May 2021, however it is unlikely that the aggregate balance of the bonus points will be redeemed in full. (p) New and Amended Accounting Policies not yet Adopted by the Company AASB 1060: General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities The AASB has issued AASB 1060: General Purpose Financial Statements - Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities. AASB 1060 defines the disclosure requirements for Tier 2 general purpose financial statements, as defined by Australian Accounting Standards, and serves as a replacement for the existing Reduced Disclosure Regime. AASB 1060 may be early-adopted and is mandatory for periods beginning on or after 1 July 2021 (and is mandatory for the Company’s 31 May 2023 year end).

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 2

Revenue and Other Income

The Company has recognised the following amounts relating to revenue in the statement of comprehensive income. 2021 2020 $

Continued operations Sale of goods Other sources of revenue

4,951,493 8,542,634

4,320,244 6,312,471

13,494,127

10,632,715

Bar sales Cafe sales

2,892,347 2,059,146

2,717,338 1,602,906

Total Sales Revenue

4,951,493

4,320,244

Goods and services tranferred to customers: - at a point in time

4,951,493

4,320,244

(b) Other Sources of Revenue Bingo Bistro rental Commissions and rebates Green and competition fees Government funding - Cash Flow Boost Government funding - Jobkeeper Payments Interest received Members' subscriptions Other revenue Poker machines (net of payouts)

73,532 33,760 407,012 109,775 50,000 612,000 874 112,670 180,926 6,962,085

104,641 111,367 278,192 102,700 50,000 277,500 1,586 137,337 214,752 5,034,396

Total Other Revenue

8,542,634

6,312,471

(a)

2(a) 2(b)

Revenue Disaggregation

The revenue is disaggregated along the following product lines:

Timing of revenue recognition

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021

Note 3 (a)

Profit for the year Expenses

Cost of goods sold Bar trading

2021

2020

1,071,832

1,034,769

778,410

589,152

1,850,242

1,623,921

Finance Costs Interest expense

50,718

53,168

Depreciation Buildings and improvements Plant and equipment

421,050 768,335

421,179 767,993

1,189,385

1,189,172

4,819,178

1,631,275

Cafe trading

Note 4

Cash and Cash Equivalents

Cash at bank and on hand Reconciliation of Cash

Cash and cash equivalents at the end of the financial year as shown in the statement of cash flows are reconciled to items in the statement of financial position as follows: Cash and cash equivalents Note 5

4,819,178

1,631,275

157,105

238,558

Trade and Other Receivables

Current Trade and other receivables

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021

Note 6

Inventories

2021

2020

72,002

73,027

19,679

27,443

Poker Machine Licences Poker machine licences at cost

84,000

(a) Movements in Poker Machine Licences Opening balance Additions Disposals

84,000 -

Closing balance

84,000

Current Finished Goods - at Cost Bar and cafe stock Note 7

Other Assets

Current Prepayments and other assets Note 8

Intangible assets

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021

Note 9

Property Plant and Equipment

2021 $

2020 $

Freehold land Freehold land at cost

3,144,871

Total freehold land

3,144,871

Buildings and freehold improvements Buildings and freehold improvements at cost Less accumulated depreciation

18,323,957 (7,679,615)

17,824,839 (7,258,565)

Total buildings and freehold improvements

10,644,342

10,566,274

Total land and buildings

13,789,213

13,711,145

Plant and Equipment Plant and equipment at cost Less accumulated depreciation

11,237,297 (8,815,682)

10,659,901 (8,089,835)

Land and Buildings

Total plant and equipment

2,421,615

2,570,066

Total property, plant and equipment

16,210,828

16,281,211

(a) Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Buildings and Freehold Plant and freehold Total land improvements Equipment $ $ $ $ Balance at 1 June 2020 3,144,871 10,566,274 2,570,066 16,281,211 Additions 499,118 624,802 1,123,920 Disposals (4,918) (4,918) Depreciation expense (421,050) (768,335) (1,189,385) Balance at 31 May 2021

3,144,871

10,644,342

2,421,615

16,210,828

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 10

Trade and Other Payables

2021 $

2020 $

643,789 737,421

32,189 540,566

1,381,210

572,755

11(d)

115,324

54,018

11(b)(c)(d)

609,718

669,440

725,042

723,458

104,368

19,710 285,690

Note Current Unsecured liabilities Trade payables Other payables and accrued expenses

Note 11

Borrowings

Current Unsecured liabilities Other equipment loans Secured liabilities Bank loans Total current borrowings Non-Current Unsecured liabilities Other equipment loans

11(d)

Secured liabilities Bank loans

11(b)(c)(d)

47,112

Government loan

11(b)(d)

400,000

551,480

305,400

1,276,522

1,028,858

Bank loans

656,830

955,130

Government loan

400,000

1,056,830

955,130

Total non-current borrowings Total borrowings (a)

(b)

Total current and non-current secured liabilities

Carrying amounts of non-current assets pledged as security

Freehold land

3,144,871

Buildings and freehold improvements Plant and equipment

10,644,342 2,421,615

10,566,274 2,570,066

16,210,828

16,281,211

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021

Note 11 (c)

Borrowings (continued) Financial assets pledged as security

Financial assets that have been pledged as part of the collateral for the benefit of the bank loan are as follows:

Cash and cash equivalents Trade and other receivables

(d)

Note 4 5

2021 $ 4,819,178 157,105

2020 $ 1,631,275 238,558

4,976,283

1,869,833

Collateral Provided

Bank Loans and Bank Overdraft Facilities The bank loans are secured by a registered first mortgage over the freehold land and buildings of the Company, and a fixed and floating charge over the assets and uncalled capital of the Company. The Club maintains bank overdraft facilities totaling $100,000 with its banker. The facilities were unutilised as at 31 May 2021. The bank overdrafts are secured by a first mortgage over freehold properties owned by the Club and a fixed and floating charge over the business. Other Equipment Loans Equipment loans are unsecured and comprise of finance contracts for the purchase of poker machines with 1 - 3 year terms. The loans are interest free. Government Loan The Special Disaster Bushfire Recovery loan provided by the New South Wales Rural Assistance Authority is secured by a registered second mortgage over the freehold land of the Company. Note 12

Other Liabilities

Current Subscriptions and income in advance

2021

2020

128,268

120,442

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021

Note 13

Provisions

Employee benefits

Other provisions

Opening balance at 1 June 2020 Additional / (utilised) provisions

306,468 57,510

42,648 18,929

349,116 76,439

Balance at 31 May 2021

363,978

61,577

425,555

Total

Analysis of Total Provisions Employee Benefits 2021 Current Non-current

2020

401,062 24,493

319,992 29,124

425,555

349,116

Provision for Employee Benefits Provision for employee benefits represents amounts accrued for annual leave and long service leave. The current portion for the provision includes the total amount accrued for annual leave entitlements and amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. These amounts are classified as current liabilities since the Company does not have an unconditional right to defer settlement of these amounts in the event employees wish to use their leave entitlement. The non-current portion of the provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021 Note 14 Capital and Leasing Commitments (a)

Note 15

Capital Expenditure Commitments

2021 $

2020 $

Contracted commitments for: - Buildings and improvements

1,380,376

Payable: - not later than one year - between one year and five years - later than five years

1,380,376 -

1,380,376

Key Management Personnel Compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any Director (whether executive or otherwise) of that entity. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The aggregate compensation of key management personnel during the financial year comprising amounts paid or payable or provided for was as follows: 2021 2020 $ $ Short-term employee benefits Post-employment benefits Other long-term benefits Termination benefits

179,782 13,591 -

150,907 11,864 25,035

193,373

187,806

Note 16 Related Party Transactions Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

Port Macquarie City Bowling Club Limited ABN 71 001 056 211

NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 May 2021

Note 17 Financial Risk Management The Company's financial instruments consist mainly of deposits with banks, cash on hand, accounts receivable and payable, bank loans and other borrowings. The carrying amounts for each category of financial instruments, measured in accordance with AASB 9 as detailed in the accounting policies to these financial statements, are as follows: 2021 2020 Note $ $ Financial Assets Financial Assets at Amortised Cost Cash and cash equivalents Trade and other receivables

4 5

Total financial assets Financial Liabilities Financial Liabilities at Amortised Cost Trade and other payables Bank loans Other equipment loans Government loan Total financial liabilities

10 11 11 11

4,819,178 157,105

1,631,275 238,558

4,976,283

1,869,833

1,381,210 656,830 219,692 400,000

572,755 955,130 73,728 -

2,657,732

1,601,613

(a) Net fair values The net fair values of financial assets and financial liabilities approximates their carrying values. The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the statement of financial position and in the notes to the financial statements. Note 18

Company Details

The registered office and principal place of business of the Company is: Port Macquarie City Bowling Club Limited 4 Owen Street Port Macquarie NSW 2444

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

NOTES

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

NOTES

PORT MACQUARIE CITY BOWLING CLUB LIMITED ABN 71 001 056 211

4 OWEN ST PORT MACQUARIE P 6583 1133 P O R T C I T Y. C O M . A U