2012 2013 ANNUAL REPORT - Kuring-Gai Motor Yacht Club · The 2013 Annual Report of the Kuring-gai...

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2012 – 2013

ANNUAL REPORT

INDEX

Minutes of 2012 Annual General Meeting ………. …………………………… 2

Report of the Board of Directors & Commodore’s Report……………………... 5

Financial Report for the Year Ended 31st March 2013…………………………. 9

Auditor’s Report ………………………………………………………………... 26

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MINUTES OF THE 67TH ANNUAL GENERAL MEETING OF

THE KURING-GAI MOTOR YACHT CLUB LIMITED

HELD IN THE CLUBHOUSE, COTTAGE POINT

ON WEDNEDAY 27th

June 2012

Commodore John Goddard, occupying the chair, welcomed all to the meeting, which he declared open at 7.30pm.

ATTENDANCE: There were 34 members in attendance as per the attendance sheets.

1. APOLOGIES: Apologies were received from Kerry Trollope, Greg Pickering, Greg Russell, Ross

Littlewood, Ken Shields, Fausto Pastro, John Read & Russell Tyler.

2. MINUTES: of the 66th

Annual General Meeting Tuesday 28th

June 2011 having been circulated were taken

as read and confirmed as being a true and accurate record by the meeting, and signed by the Chairman.

Moved and seconded Ian Renton and Peter King.

3. BUSINESS ARISING: None

4 PROXIES: Proxies received

5. TO RECEIVE AND ADOPT THE REPORT OF THE DIRECTORS FOR 2011-2012 AND THE

COMMODORE’S REPORT.

Moved and seconded by Ken Stubbs and Glenn Dodson.

6. TO RECEIVE AND ADOPT THE DIRECTORS REPORT AND ACCOUNTS FOR THE YEAR

ENDED 31ST

MARCH 2012.

There were no questions tabled in advance. Glenn Dodson enquired when the last land valuation was

received. Alan Pears responded 2010. John Colquhoun noted some of the land values in Cottage Point

went down.

Vaughn Chapman asked what the balance in trade debtors is. Alan Pears responded the value included

outstanding mooring fees, membership subscriptions and purchases from waterfront including fuel and ice.

Moved and seconded Andrew Zanchetta and Terry Stone ‘that we receive and adopt the Directors’ Report

and accounts for the year ended 31st March 2012.’ Agreed to by the meeting.

At this time Phil Alchin presented an update on the mini marina.

He noted the following:

- it is difficult to entice new members without available mooring facilities

- marina will be a turnkey construction with approx 30 berths, work pontoon and fuel wharf remain

unchanged, minimal visual impact to Notting Lane residents

- additional berths are unknown due to NPWS Plan of Management

- Current cost estimate $1.2m

Rob Harrington suggested moving the fuel bowsers to the outside wharf which Phil responded can be done

at a cost.

Alan Pears explained we will lose 22 swing moorings initially with an additional 8 lost one per year for 8

years.

Alan also noted all money spent on improvements to the club in the past has not provided additional

revenue which the marina will.

Peter King asked can the current status of the marina be summarised as the actual costs are not yet known

and a number of factors including Parks response is uncertain. Phil Alchin agreed.

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Paul Jones asked if the price was fixed to which Phil responded not at this stage as we are only in early

discussion. Paul also requested a polling of membership before spending $40,000 to which John Goddard

responded that it would be reasonable.

Peter Burmeister suggested we increase fees instead of building a marina.

Terry Stone asked when the club will be ready to go to the members with a final proposal. Response was

unknown at this stage.

Andrew Zanchetta noted that if we offer more prepaid berths we could reduce the debt for the marina.

In summary Phil Alchin asked the membership to consider the future of the club.

John Goddard thanked Phil Alchin and the mini marina sub-committee for their work on the project so far.

7. TO ELECT FLAG AND EXECUTIVE OFFICERS FOR THE YEAR ENDED 31ST

MARCH 2012 –

2013.

The following nominations have been received in accordance with the Articles of Association of the Club:

COMMODORE Jim Murphy

VICE COMMODORE Phil Alchin

REAR COMMODORE Luis Garcia

HONORARY TREASURER Greg Russell

There being no other nominations the above were declared elected as the Executive for the coming year.

Moved and seconded by Alan Pears and Alan Judge.

John Goddard presented the Flag Officers with their burgee and epaulettes. Ian Renton presented John

Goddard with his Past Commodore burgee and epaulettes.

8. TO ELECT COMMITTEE MEMBERS FOR THE YEAR ENDED 2012-2013.

The following members nominated for committee.

RODGER, Toby RUSSELL, Paul ZANCHETTA, Andrew

KINNA, Michelle MUNRO, Doug

John Goddard thanked Garry Sexton for his service on the board for the past year.

Paul Russell and Andrew Zanchetta were asked to tell the members a bit about themselves.

Paul Russell noted he was a chartered accountant and was previously on the board.

Andrew Zanchetta has been a member since 2004 and is committed to ensuring the club is viable in the

future for his children.

Moved and seconded by John Spry and John Garran ‘that the 5 committee members nominated be

appointed to the committee for 2012-2013’.

9. GENERAL BUSINESS.

a. Move to destroy proxies.

Proxy destroyed

b. Such General Business as may be determined.

John Garran asked a question on behalf some Cottage Point Community members. They asked about the

state of the kiosk path and tidying it up. Plants were suggested. John Colquhoun noted mud going down

the path is dangerous.

Peter King enquired about the progress of the mooring occupancy agreement. Doug Munro noted it is on

hold until the insurance questions are answered. Peter also asked if the new outboard motors had electric

starts to which Jim Murphy replied yes.

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Bob Allan asked if there was any plan to provide additional dinghy storage. The committee is looking into

options.

Paul Jones asked if the trees beside the slipway could be trimmed. Jim Murphy noted the trees around the

whole property have been assessed and waiting on council approval. The removal will be done once

approval is obtained.

John Spry commented that the grounds look good, the staff are great and it is a credit to the Committee.

Jim Murphy thanked outgoing Commodore, John Goddard for his service on the board.

There being no further business the Commodore thanked everyone for their attendance and declared the

meeting closed at 9.05pm.

CHAIRMAN: …………………………………………………….

DATED: ……………………………………………………..

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REPORT OF THE BOARD OF DIRECTORS

The 2013 Annual Report of the Kuring-gai Motor Yacht Club Limited together with the Directors Report and

Accounts is submitted on behalf of the Board of Directors.

To conform with the Constitution of the Club, the following information is presented.

Article 53(a)

A copy of the Income Statement and Balance Sheet as at 31st March 2013, the end of the Club’s financial year, is

forwarded with the report.

Article 53(b)

(i) The amount of depreciation during the year amounted to $73,625

(ii) The profit before income tax for the year is $127,524 (Year 2012: profit $46,942). The profit after

income tax is $127,524 (Year 2012: profit $46,942)

(iii) The number of members of each class in the Register of Members as at 31st March 2013 is:

2013 2012

Honorary Life Members 2 2

Members 143 144

Members Free 0 0

Past Boat Owners 24 27

Remote Members 25 20

Crew Members 3 1

Family Crew Members 31 30

Social Members 16 15

Coast Guard Members 3 5

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247 244

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(iv) BOARD OF DIRECTORS (Officers & General Committee) at 31st March 2013

COMMODORE Jim Murphy

VICE COMMODORE Phil Alchin

REAR COMMODORE Luis Garcia

HONORARY TREASURER Greg Russell

IMMEDIATE PAST COMMODORE John Goddard

COMMITTEE MEMBERS Michelle Kinna

Doug Munro

Toby Rodger

Paul Russell

Article 53(c)

All requirements complied with.

Meetings

Since the end of the financial year 2012, the Board of Directors have conducted 11 General Committee Meetings.

Attendances were as follows:

Murphy JL 11 Russell GA 9

Alchin P 11 Rodger TJ 11

Munro D 8 Zanchetta A 2 (resigned 05/11/12)

Russsell P 7 Garcia L 7

Sexton G 3 (resigned 25/06/12) Kinna M 9 Goddard.J 7

………………………………

Commodore

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KURING-GAI MOTOR YACHT CLUB LIMITED ABN: 87 000 262 920

COMMODORE’S REPORT The financial performance at KMYC in the past 12 months delivered a good result with a profit from ordinary

activities of $127,524 from total revenue of $978,438. The new waterfront building commercial loan of

$121,766.00 was fully paid out late March. This, in the Boards view, represents a satisfactory result and is

reflective of the clear focus we sought to achieve this financial year. My thanks to Treasurer, Greg Russell for his

very valuable input.

The Board has also been considering the future of the Club and its financial viability. There are significant

maintenance cost associated with the total property, and concerns regarding the long term sustainability of some of

the Club’s revenue streams that the Board takes this aspect of its governance seriously. In the past, member’s

voluntary labour has been a significant contributor to building the physical assets on site. Unfortunately voluntary

labour is no longer what it was, simply due to the changing demands on people’s time and as such the Club now

pays commercial prices for work done.

Marina Development: A detailed update from the Marina Committee was published via email on 22.05.13. The

Marina committee has still been considering the feasibility of the marina and even though the general committee of

the club has on two previous occasions approved expenditure on exploratory costs, it should be noted that

absolutely none of your funds have been spent to date. The quotes received for the necessary geotechnical work

with regard to the piling have been unacceptable. A number of concerns have also been raised, especially by

Cottage Point residents as to increased traffic, parking and noise on the marina.

Moorings - Membership: At year end, the Club has a waiting list of 13 vessels. Two being D (up to 60’), one C (up

to 46’), two B (up to 40’) and two A (up to 33’). All Club moorings at Cottage Point, Refuge and America Bays

and the Basin are serviced annually. Mooring Master Doug Munro has now firmly taken on this role with

confidence and has been diligent in ensuring the servicing of these moorings with the capable assistance of

M.S.M.O. Keith Davison. Michelle Kinna and Toby Rodger have spent much of their time interviewing new

prospective boat owning members during the year and as always, we have members relocating, selling boats or

retiring each year from the Club, which is normal attrition. Total Membership stands at 247 of which 169 are boat

owning members.

Grounds and Buildings: Following the early year rainfall and under the care of Keith, the Club grounds are looking

magnificent at this time. As a considerable amount of work was carried out on the main Clubhouse last year, other

areas requiring maintenance has been undertaken this financial year. A new Security fob system was introduced to

members to control access to the grounds and car park. Following a large gum tree falling across the lower car park,

and after approval from Warringah Council, an arborist trimmed and removed trees from all areas of the Club

grounds. Also included was new vinyl floor covering in the food prep area of the Kiosk as well as maintenance to

both cottages. A special thanks to Phil Alchin for overseeing these necessary projects.

Waterfront & Staff: The Founders Lounge continues to be a comfortable venue for both the Rally Medallion

presentations as well as for the Social Committee meetings. Keith capably installed a new lighter aluminium

walkway to the pontoon to replace the unsafe and heavy timber walkway and also applied Non Skid paint to the

pontoon edges as the existing painted edge was becoming slippery when wet. A Polaris Buggy was purchased for

the waterfront to replace the ride on lawnmower that had been used as mode of transport for the past few years. The

buggy was a component of the overall plan of upgrading the waterfront rubbish situation. A drop down aluminium

bin holder has been fitted to the buggy as well as a mechanical bin lifter installed at the lower car park rubbish bin

area to assist the waterfront staff. We now also have a keen and dedicated team of six waterfront staff who provide

an excellent service to members over the weekends and holiday periods, five who have been with us for at least 2

years with one recent addition who is fitting in very well. Thank you from all members for your dedication and

assistance.

Social, Rallies and Website: Social activities, both on and off the water have played an important role in the Club’s

calendar since I joined the Club in 2004 but over the past couple of years numbers attending these functions have

been dwindling apart from the ever popular Opening Day. We had a full year of activities under the guidance of

Rear Commodore Luis Garcia and Rita with the support of our very dedicated and capable Social Committee. I

encourage members to participate in at least some of the planned activities that are printed in the Club’s Year book.

New Sailing Master, Graham Astridge prepared some new and different on and off water activities which were

well attended. Sadly and a great loss to both KMYC and the Halvorsen Club, Graham passed away 20/05/2013.

Toby Rodger continues to manage the KMYC website with the online work pontoon booking system becoming

very popular with members. Internet access from the Clubs Wi Fi network is also becoming popular. My thanks to

fellow Rally Master John Spry for his guidance and help during the Rally season where we lost two long term

ralliers and although numbers of participants varied widely there is a small group of keen and dedicated ralliers.

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And in conclusion I would like to thank all of the Committee for their support, commitment and tolerance

throughout the past year and also the many other volunteers, Social Committee, Sailing Master, and Honorary

Solicitor who have in any way contributed to the Clubs continued success. I thank also Club Secretary, Janelle

Jordan for her help and assistance and Member Services and Maintenance Officer Keith Davison with his many

skills and after achieving 10 years’ service late August 2012, continues to be a valuable asset to KMYC.

KMYC is undoubtedly unique in style, location and membership. May you all continue to work hard in its best

interest.

CHAIRMAN: ____________________________________________

DATED: ____________________________________________

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DIRECTOR’S REPORT

Your directors present their report on the club as a company for the financial year ended 31 March 2013.

1. The names of the Directors in office at any time during or since the end of the year are:

Murphy JL Russell P Russell GA Russell P (appointed 27/06/2012)

Alchin P Rodger TJ Kinna M Sexton G (resigned 25/06/2012)

Garcia L Goddard JL Munro D

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

stated.

2. The profit of the club for the financial year amounted to $127,524.

3. A review of the operations of the club during the financial year and the results of those operations are as

follows:

- The principal activities of the club in the course of the financial year consisted of the provision of boating

and clubhouse facilities for members.

- There were no significant change in the nature of those activities during the year.

4. No matters or circumstances have arisen since the end of the financial year which significantly affected or may

significantly affect the operations of the club, the results of those operations, or the state of affairs of the club in

future financial years.

5. The club’s operations are subject to Compliance with the requirements of the National Parks and Wildlife Act,

1974 and any Regulations and By-Law, the Environmental Protection Authority’s (EPA) Environment Best

Management Practice for Marinas and Slipways and relevant legislation.

The company’s operations are consistently monitored to ensure compliance with relevant environmental laws

and regulations. The company has established control procedures and guidelines to ensure compliance exists.

All relevant licences and approvals are held and the company has not been prosecuted for any environmental

offence.

The company is committed to minimising any adverse environmental impact of its activities, while continuing

to meet expectations of members for best services and providing a safe working environment for employees.

6. No dividends have been paid or declared since the start of the financial year.

7. No options over issued shares or interests in the club were granted during or since the end of the financial year

and there were no options outstanding at the date of this report.

8. No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for

any person who is or has been an officer or auditor of the club, with the exception of the following matters.

During the financial year the club paid a premium to insure any current, past or future directors against

liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their

conduct while acting in the capacity of director of the company, other than conduct involving wilful breach of

duty in relation to the club.

9. No person has applied for leave of Court to bring proceedings to which the club is a party for the purpose of

taking responsibility on behalf of the club for all or any part of those proceedings.

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

………………………………….. …………………………………..

J L Murphy - Commodore G A Russell – Treasurer

(Director) (Director)

Dated this …………………day of …………………..2013

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KURING-GAI MOTOR YACHT CLUB LIMITED

ABN: 87 000 262 920

INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2013

Note

2013

$

2012

$

Sales Revenue 2 978,438 959,827

Cost of Sales 3 155,244 174,965

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Gross Profit 823,194 784,862

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Administration & Finance Expense 3 195,802 213,469

Personnel Costs 3 196,813 202,155

Licences & Rates 3 95,627 98,405

Member Expense 3 35,017 28,866

Maintenance & Consumables 3 172,411 195,025

------------- -------------

Total Expenses 695,670 737,920

------------- -------------

Profit from ordinary activities before income tax 127,524 46,942

------------- -------------

Income Tax expense relating to ordinary activities 4 0 0

------------- -------------

Net Profit after income tax from ordinary activities 127,524 46,942

------------- -------------

Net Increase in Asset Revaluation Reserve (255,000) 0

------------- -------------

Total change in Equity other than those resulting

from transactions with owners as owners (127,476) 46,942

------------- -------------

The accompanying notes form part of the financial statements

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ABN: 87 000 262 920

BALANCE SHEET

AS AT 31 MARCH 2013

Note

2013

$

2012

$

CURRENT ASSETS

Cash 5 182,990 137,188

Receivables 6 323,753 324,661

Inventories 7 28,517 23,503

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TOTAL CURRENT ASSETS 535,260 485,352

------------- ------------- NON CURRENT ASSETS

Property, Plant and Equipment 8 7,822,743 8,101,503

------------- -------------

TOTAL NON CURRENT ASSETS 7,822,743 8,101,503

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TOTAL ASSETS 8,358,003 8,586,855

------------- -------------

CURRENT LIABILITIES

Accounts Payable 9 101,816 45,035

Provisions 10 1,091 1,091

Other 11 276,663 224,897

------------- -------------

TOTAL CURRENT LIABILITIES 379,570 271,023

------------- ------------- NON CURRENT LIABILITIES

Bank Loans 12 69,037 278,960

------------- -------------

TOTAL LIABILITIES 448,607 549,983

------------- ------------- NET ASSETS 7,909,396 8,036,872

======== ========

MEMBERS FUNDS

Asset Revaluation Reserve 13 6,583,709 6,838,709

Retained Profits 1,325,687 1,198,163

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TOTAL MEMBERS FUNDS 7,909,396 8,036,872

======== ========


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ABN: 87 000 262 920

STATEMENT OF CASH FLOWS


Note

2013

$

2012

$

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from Customers 973,060 847,687

Payments to Suppliers and Employees (658,423) (710,381)

Interest Received 2,350 3,509

Interest Paid (18,199) (27,408)

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Cash Flow from Operating Activities 15 298,788 113,407

------------- -------------

CASH FLOW FROM INVESTING ACTIVITIES

Proceeds from Sale of Fixed Assets 0 0

Payment for Fixed Assets (49,863) (7,988)

------------- -------------

Cash Flow from Investing Activities (49,863) (7,988)

------------- -------------

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from Borrowings 0 0

Repayment of Borrowings (209,923) (132,245)

------------- -------------

Cash Flow from Financing Activities (209,923) (132,245)

------------- -------------

Net increase/(decrease) in cash held 45,802 (26,826)

Cash at the beginning of the financial year 137,188 164,014

------------- -------------

Cash at the end of the financial year 15 182,990 137,188

------------- -------------


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ABN: 87 000 262 920

STATEMENT OF CHANGES IN EQUITY


Note

2013

$

2012

$

Balance at beginning of year 8,036,872 7,989,930

Profit attributable to members of parent equity 3 127,524 46,942

Income tax on items taken directly to equity 4 0 0

Revaluation of Land 13 (255,000) 0

------------- -------------

Subtotal 7,909,396 8,036,872

------------- -------------

Dividends paid for or provided for 0 0

------------- -------------

Balance at end of year 7,909,396 8,036,872

------------- -------------


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NOTES TO THE FINANCIAL STATEMENTS


1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a general-purpose financial report that has been prepared in accordance with

Accounting Standards, Urgent Issues Group Consensus Views and other authoritative

pronouncements of the Australian Accounting Standards Board. The financial report has been

prepared on an accruals basis and is based on historical costs and does not take into account changing

money values or, except where stated, current valuations of non-current assets.

The Kuring-gai Motor Yacht Club Limited is a company limited by Guarantee, incorporated and

domiciled in Australia. The financial report of the Kuring-gai Motor Yacht Club Limited complies

with all Australian equivalents to International Financial Reporting Standards (IFRS) in their entirety.

Cost is based on the fair values of the consideration given in exchange for assets. The accounting

policies have been consistently applied, unless otherwise stated.

The following is a summary of the material accounting policies adopted by the company in the

preparation of the financial report. The accounting policies have been consistently applied, unless

otherwise stated.

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis, and is based on historical costs modified

by the revaluation of selected non-current assets, and financial assets and financial liabilities for

which the fair value basis of accounting has been applied.

(a) Inventories

Inventories, comprising fuel, oil, ice, gas and other goods held for resale are stated at the lower of

cost and net realisable value.

(b) Property, Plant & Equipment

Property, plant and equipment are carried at cost or at independent or directors’ valuation, less where

applicable, any accumulated depreciation or amortisation. The carrying amount of property, plant

and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable

amount from those assets. The recoverable amount is assessed on the basis of the expected net cash

flows which will be received from the assets employment and subsequent disposal. The expected net

cash flows have not been discounted to present values in determining recoverable amounts.

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but

excluding freehold land, are depreciated on a straight line basis over their estimated useful lives to the

company commencing from the time the asset is held ready for use. Properties held for investment

purposes are not subject to a depreciation charge. Leasehold improvements are depreciated over the

shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

Profits and losses on disposal of property, plant and equipment are taken into account in determining

the profit for the year.

The depreciation rates used for each class of assets are:

Buildings 4%

Boat shed equipment 5% - 10%

Plant and equipment 5% - 20%

Furniture and fittings 10% - 20%

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NOTES TO THE FINANCIAL STATEMENTS (cont’d)


1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

The revaluations of freehold land and buildings have not taken account of the potential capital gains

tax on assets acquired after the introduction of capital gains tax.

(c) Debtors

Receivables are recognised and carried at original invoice amount less a provision for any

uncollectible debts. An estimate of doubtful debts is made when collections for the full amount is no

longer probable. Bad debts are written off as incurred.

(d) Employee Entitlements

The provisions for employee entitlements to wages, salaries and annual leave represents the amount

which the company has a present obligation to pay resulting from employee’s services provided up to

the balance date. The provisions have been calculated based on the amount expected to be paid when

the liabilities are settled.

The liability for employees’ entitlements to long services leave has been calculated at undiscounted

amounts based on current wage and salary rates. The provision relates to amounts expected to be

paid to employees for long services leave and is based on legal and contractual entitlements and

assessments having regard to experience of staff departures and leave utilisation.

(e) Taxation

The charge for current income tax expenses is based on the profit for the year adjusted for any non

assessable or disallowed items. 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 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 liability is settled. Deferred tax is credited in the income statement except where it relates

to items that may be credited directly to equity, in which case the deferred tax is adjusted directly

against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will

be available against which deductible temporary differences 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 entity will derive sufficient future assessable income to enable the benefit to be realised and

comply with the conditions of deductibility imposed by the law.

(f) Revenue Recognition

Revenue from sale of goods is recognised upon delivery of goods to the customers.

Interest income is recognised as it accrues.

Revenue from rendering of services is recognised upon the delivery of services to customers.

Rental income is recognised as it accrues.

(g) Impairment of Assets

At each reporting date, the entity 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

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NOTES TO THE FINANCIAL STATEMENTS (cont’d)


2. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value

over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates

the recoverable amount of the cash-generating unit to which the asset belongs.

(h) Trade and other payables

Liabilities for trade creditors and other amounts are carried at cost which is the fair value of the

consideration to be paid in the future of goods and services received, whether or not billed to the

entity.

Provisions

Provisions are recognised when the entity 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.

Goods and services tax

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. 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 expenses.

Receivables and payables in the balance sheet are shown inclusive of GST.

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component

of investing and financing activities, which are disclosed as operating cash flows.

Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to

changes in presentation for the current financial year.

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 group.

Key estimates – Impairment

The entity assesses impairment at each reporting date by evaluating conditions specific to the

company that may lead to the impairment of assets. Where an impairment trigger exists, the

recoverable amount of the asset is determined. Value in use calculations performed in assessing

recoverable amounts incorporate a number of key estimates.

No impairment has been recognised for assets at 31

st March 2013.

Key estimates – Doubtful debts provision

Amounts of accounts receivable were assessed. The directors believe that no provision for doubtful

debts should be made at 31st March 2013. ($ 0 31

st March 2012)

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ABN: 87 000 262 920



2013

$

2012

$

2 REVENUE

Operating Activities

Moorings 395,161 367,574

Members’ Subscriptions & Entrance Fees 129,470 111,501

Members Capital Levy 39,553 34,842

Fuel, Oil, Ice and Gas 195,135 216,206

Slipway 20,134 19,666

Dinghy Storage 10,448 9,615

Sundry Income 333 7,693

Boatshed and House Rentals 146,198 152,243

Interest 2,350 3,509

Tenant Reimbursement 39,656 36,978

------------- -------------

Total Revenue 978,438 959,827

------------- -------------

3 PROFIT FROM ORDINARY ACTIVITIES

Cost of Sales 155,244 174,965

------------- -------------

Personnel Costs 196,813 202,155

------------- -------------

Licenses & Rates 95,627 98,405

------------- -------------

Members Expense 35,017 28,866

------------- -------------

Maintenance & Consumables 172,411 195,025

------------- -------------

Administration & Finance Cost:

Depreciation of property, plant & equipment 73,625 69,155

Insurance 82,329 80,113

Bank charges & card fees 3,546 7,786

Auditors Remuneration 8,346 7,803

Other Administration & Finance Costs 27,956 48,612

------------- -------------

Total Administration & Finance Costs 195,802 213,469

------------- -------------

Profit attributable to members of parent entity 127,524 46,942

------------- -------------

4 INCOME TAX EXPENSE

Prima facie tax payable on operating profit before

Income tax at 30% (2012:30%) 38,257 14,083

Adjustments for non taxable items:

- Non assessable income (213,368) (202,463)

- Non deductible expenses 169,178 195,297

- Income tax benefit on loss carried forward 5,933 (6,917)

------------- -------------

INCOME TAX EXPENSE 0 0

------------- -------------

- 17 -


ABN: 87 000 262 920



2013

$

2012

$

5 CASH

Deposit – at call 0 30

Cash at Bank – Cash Management 83,925 51,575

Cash at Bank 98,261 84,779

Petty Cash Imprest Account 804 804

------------- -------------

182,990 137,188

------------- -------------

6 RECEIVABLES

Trade Debtors 238,115 229,864

Less: Provision for Doubtful Debt 0 0

------------- -------------

238,115 229,864

Other Debtors and Prepayments 85,638 94,797

------------- -------------

323,753 324,661

------------- -------------

7 INVENTORIES

Stock on Hand (at cost) 28,517 23,503

------------- -------------

28,517 23,503

------------- -------------

8 PROPERTY, PLANT & EQUIPMENT

Freehold Land – based on Directors valuation 2013 6,630,000 6,885,000

------------- -------------

Buildings at cost 1,534,791 1,534,791

Less: Accumulated Depreciation 463,558 415,843

------------- -------------

1,071,233 1,118,948

------------- -------------

Boatshed Equipment at cost 112,953 105,539


------------- -------------

10,137 3,986

------------- -------------

Plant & Equipment at cost 506,527 468,418


------------- -------------

103,141 87,836

------------- -------------

- 18 -


ABN: 87 000 262 920



2013

$

2012

$

8 PROPERTY, PLANT & EQUIPMENT (con’d)

Furniture & Fittings at cost 43,415 43,415


------------- -------------

3,192 5,033

------------- -------------

Slipway – at cost 0 700

Less: accumulated depreciation 0 0

------------- -------------

0 700

------------- -------------

Security Fobs 5,040 0

------------- -------------

TOTAL PROPERTY, PLANT & EQUIPMENT 7,822,743 8,101,503

------------- -------------

The directors valuation of freehold land in 2013 was carried out as at 31st March 2013 and was on the

basis of the latest unimproved capital value of the land as advised by the Valuer General.

The valuation was made in accordance with a regular policy of revaluing property. (a) Movements in Carrying Amounts

Freehold Boat Plant Furniture Security

Land Buildings Equip & Equip & Fittings Slipway Fobs

Bal, at the beginning of the year 6,885,000 1,118,948 3,986 87,836 5,033 700 -

Additions - - 7,414 38,109 - (700) 5,040

Depreciation Exp. - (47,715) (1,263) (22,804) (1,841) - -

Revaluation (255,000) - - - - - -

Carrying Amount at the

end of the year 6,630,000 1,071,233 10,137 103,141 3,192 - 5,040

9 ACCOUNTS PAYABLE

Current

Other creditors and accruals 101,816 45,035

------------- -------------

10 PROVISIONS

Current

Provision for Employees Entitlements 1,091 1,091

------------- -------------

- 19 -


ABN: 87 000 262 920



2013

$

2012

$

11 OTHER LIABILITIES

Current

GST Payable 15,823 14,703

PAYG Payable 2,546 19,528

Provision for Long Service Leave 17,066 14,739

Income received in Advance

- Members Subscriptions 135,046 126,063

- Moorings and Dinghy Storage 10,363 10,400

- Capital Fund 79,519 39,464

Security Fob Deposits 16,300 0

------------- -------------

276,662 224,897

------------- -------------

12 BANK LOANS 69,037 278,960

------------- -------------

13 ASSET REVALUATION RESERVE

Asset Revaluation Reserve 6,583,709 6,838,709

------------- -------------

(a) Movements during the year:-

Asset Revaluation Reserve – Opening Balance 6,838,709 6,838,709

Revaluation increment on freehold land (255,000) 0

------------- -------------

6,583,709 6,838,709

------------- -------------

14 MEMBERS’ GUARANTEE

Members’ Guarantee 3,880 3,860

------------- -------------

The company is limited by guarantee. If the company is

would up, the Constitution states that each member is

required to contribute a maximum of $20 each towards

meeting any outstanding obligations of the company.

As at 31 March 2013 the number of members was 194

(2012:193)

15 NOTES TO STATEMENT OF CASH FLOWS

(i) Reconciliation of Cash

For the purpose of the Statement of Cash Flows, cash includes cash on hand and at bank net of

the outstanding Bank overdraft. Cash at the end of the financial year as shown in the Statement

of Cash Flows is reconciled to related items in the balance sheet as follows:-

2013

$

2012

$

- Petty Cash 804 804

- Bank Overdraft / Cash on Hand 182,186 136,384

------------- -------------

182,990 137,188

- 20 -


ABN: 87 000 262 920



2013

$

2012

$

15 NOTES TO STATEMENT OF CASH FLOWS(con’d)

(ii) Reconciliation of Operating Profit after income

Tax to net cash provided by operating activities

Operating Profit after income tax 127,524 46,942

Add/Less: Non Cash items:

- Depreciation 73,625 69,155

- Provision for Long Service Leave 2,327 4,314

- Doubtful Debts 0 (1,168)

------------- -------------

Net cash provided by operating activities before

change in assets and liabilities 203,476 119,243

Change in Assets and Liabilities

(Increase)/decrease in Inventories (5,014) 15,758

(Increase)/decrease in Receivables 41,962 (46,343)

Increase/(decrease) in Current Liabilities 58,364 24,749

------------- -------------

95,312 (5,836)

------------- -------------

Net cash provided by operating activities 298,788 113,407

------------- -------------

16 FINANCIAL INSTRUMENTS

(a) Financial Risk Management

The company’s financial instruments consist mainly of deposits with banks, accounts

receivable and payable, loans and borrowings. The main purpose of non-derivative financial

instruments is to raise finance for the operations of the Club. The Club does not have any

derivative instruments at 31st March 2013.

(i) Treasury Risk Management

As part of the Board’s regular meetings, material exposure to currency and interest rates

are evaluated, in the context of recent economic conditions.

(ii) Financial Risks

The main risks the Club is exposed to through its financial instruments are interest rate

risk, credit risk and liquidity risk.

Interest Rate Risk

For details on interest rate risk, refer to note (b).

Foreign Currency Risk

The Club is not exposed to fluctuations in foreign currency.

- 21 -


ABN: 87 000 262 920



16 FINANCIAL INSTRUMENTS (Con’d)

Liquidity Risk

The group manages liquidity risk by monitoring forecast cash flows and ensuring that

adequate unutilised borrowing facilities are maintained.

Credit Risk

The maximum exposure to credit risk, excluding the value of any collateral or other

security, at balance date to recognised financial assets is the carrying amount, net of any

provisions for doubtful debts, as disclosed in the balance sheet and notes to the financial

statements.

The economic entity does not have any material credit risk exposure to any single debtor

or group of debtors under financial instruments entered into by the economic entity.

Price Risk

The Club is not exposed to any commodity price risk.

(b) Interest Rate Risk

The company exposure to interest rate risk, which is the risk that a financial instrument’s

value will fluctuate as a result of changes in the market interest rates and the effective

weighted average interest rates on those financial assets and financial liabilities, is as

follows:

Weighted Average Fixed interest rate Fixed interest rate

Effective Interest Floating Interest Rate maturing in 1 year or less maturing between 1 & 2 yrs non interest bearing

Rate

2013 2012 2013 2012 2013 2012 2013 2012 2013 2012

% % $ $ $ $ $ $ $ $ Financial Assets

- Cash at bank 3.0 4.00 99,065 85,613 - - - - - - -

- Cash on deposit 3.0 4.25 83,925 51,575 - - - - - - -

- Receivables n/a n/a 0 0 - - - - 282,699 324,661

Total Financial Assets 182,990 137,188 - - - - 282,699 324,661

Financial Liabilities

- Accounts payable n/a n/a - - - - - - 101,816 45,035

- Provisions / Other n/a n/a - - - - - - 281,991 225,988

- Bank Loan 6.9 8.48 69,037 278,960 - - - - -

Total Financial Liabilities 69,037 278,960 - - - - 383,807 271,023

(c) Net Fair Value

The net fair value of other assets approximates their carrying value. No financial assets are

readily traded on organised markets in standardised form other than listed investments. Financial

assets where the carrying amount exceeds net fair values have not been written down as the

economic entity intends to hold these assets to maturity. The aggregate net fair value and

carrying amounts to financial assets are disclosed in the balance sheet and in the notes to and

forming part of the accounts.

- 22 -


ABN: 87 000 262 920



2013

$

2012

$

17 RELATED PARTY TRANSACTIONS

(a) Directors in Office

The names of the directors who have held office during the financial year are:

Murphy JL Russell P Russell GA Goddard JL

Alchin P Rodger TJ Kinna M

Munro D Sexton G Garcia L

(b) Directors Fees

During the year the following director fees / out of pocket expenses, including insurance

premiums to indemnity liabilities while acting as a director were paid to directors:

2013 2012

0 0

------------- -------------

(c) Related Parties transaction

All transactions entered into during the year with directors, including the provisions of

moorings and the sale of goods and services, were on normal member terms and conditions.

18 FINANCIAL REPORTING BY SEGMENTS

The Club operates predominately in the provision of boating and clubhouse facilities in one

geographical area being Cottage Point, NSW, Australia.

19 CONTINGENT LIABILITIES

(a) Assets Pledged as Security

Included in the balances of freehold land and buildings are assets over which first mortgages

have been granted as security. The terms of the first mortgages preclude the assets being sold

or being used as security for further mortgages without the permission of the first mortgage

holder.

(b) The board of the club is in the process of considering the construction of a mini marina with a

total cost in excess of $1,000,000. Subject to the necessary approvals it is likely that the

construction will commence within two years.

- 23 -


DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out in pages 8 to 22 present fairly the club’s financial

position as at 31st March 2013 and to the performance for the year ended on that date in

accordance with Accounting Standards and other mandatory professional reporting

requirements.

2. In the directors’ opinion, there are reasonable grounds to believe that the club will be able to pay

its debts as and when they become due and payable.

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

…………………………………. ………………………………….

JL Murphy GA Russell

Commodore Treasurer

(Director) (Director)

Dated this ……………………day of……………….. 2013

- 24 -


DETAILED STATEMENT OF INCOME & EXPENDITURE


2013 2012 2011

$

INCOME

Total Sales Revenue 978,438 959,827 918,961

------------- ------------- -------------

Sales of Fuel, Oil, Ice, Gas & Water 195,135 216,206 201,316

Less: Cost of Goods sold (155,244) (174,965) (156,707)

------------- ------------- -------------

Net Income from Sales of Fuel, Oil, Ice, Gas

& Water

39,891

41,241 44,609

Members Subs and Entrance fees 129,470 111,501 116,301

Members Capital Levy 39,553 34,842 36,235

Mooring Revenue 395,161 367,574 353,054

Dinghy Storage 10,448 9,615 10,032

Slipway Rent 20,134 19,666 18,819

Boatshed, Shop and House Rents 146,198 152,243 140,611

Sundry Income 333 7,693 3,907

Interest Received 2,350 3,509 1,842

Tenant Reimbursement 39,656 36,978 36,844

------------- ------------- -------------

GROSS PROFIT 823,194 784,862 762,254

------------- ------------- -------------

LESS EXPENDITURE

Administration & Finance -

Audit and Accountancy fees 8,346 7,803 7,217

Bank Charges & Card Fees 3,546 7,786 3,569

Computer & Website 4,006 12,492 3,062

Depreciation 73,625 69,155 70,158

Doubtful Debts 0 (1,168) 0

General Expenses 1,661 4,738 2,397

Insurance 82,329 80,113 77,565

Interest 18,199 27,408 35,590

Telephone 4,090 5,142 6,834

------------- ------------- -------------

195,802 213,469 206,392

------------- ------------- -------------

Personnel Costs -

Superannuation 15,901 16,780 14,107

Wages & Employee Entitlements 180,912 185,375 168,327

------------- ------------- -------------

196,813 202,155 182,434

------------- ------------- -------------

- 25 -


DETAILED STATEMENT OF INCOME & EXPENDITURE


2013 2012 2011

$

Licenses & Rates -

NPWS & Waterways License 40,392 39,148 38,000

Council Rates & License Fees 55,235 59,257 54,755

------------- ------------- -------------

95,627 98,405 92,755

------------- ------------- -------------

Member Expense -

Advertising & Promotion 200 3,730 2,666

Club Keys 7,580 59 1,154

Committee Expenses 8,768 7,352 6,140

Logs & Annual Club Books 0 0 1,739

Printing, Stationery & Postage 14,672 10,843 10,308

Social Functions (including Open Day) 2,414 6,263 2,095

Trophies & Race Committee 1,383 619 445

------------- ------------- -------------

35,017 28,866 24,547

------------- ------------- -------------

Maintenance & Consumables -

Consumable Stores 7,659 7,373 5,827

Electricity & Gas 7,636 7,912 6,973

Maintenance - Clubhouse 3,532 65,996 5,737

- Buildings 18,933 29,935 19,892

- Grounds, Gardens & Lawns 27,062 6,433 11,682

- Moorings 28,728 5,370 25,648

- Plant & Equipment 2,813 549 7,080

- Pontoons & Wharf 9,347 2,212 539

- Tenders 3,977 5,178 14,239

- Pool 583 568 2,910

- Fuel Supplies 350 19,928 0

Property Security 1,345 1,634 1,568

Rubbish Removal & Cleaning Materials 38,476 37,152 37,589

Water Supply & Sewerage Maintenance 21,970 4,785 3,652

------------- ------------- -------------

172,411 195,025 143,336

------------- ------------- -------------

TOTAL EXPENSES 695,670 737,920 649,464

------------- ------------- -------------

Profit before Tax 127,524 46,942 112,790

------------- ------------- -------------

Income Tax Expense 0 0 0

------------- ------------- -------------

NET PROFIT AFTER TAX 127,524 46,942 112,790

------------- ------------- -------------

This statement is to be read in conjunction with the attached disclaimer

2012 2013 ANNUAL REPORT - Kuring-Gai Motor Yacht Club · The 2013 Annual Report of the Kuring-gai...

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