Murwillumbah Golf Club Limited€¦ · Murwillumbah Golf Club Limited ABN 80 001 034 813 Notes to...

Murwillumbah Golf Club Limited

ABN 80 001 034 813

Financial Report

For the Year Ended 30 June 2015


ABN 80 001 034 813

Contents


Page

Financial Statements

Directors' Report 1

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 5

Statement of Profit or Loss and Other Comprehensive Income 6

Statement of Financial Position 7

Statement of Changes in Equity 8

Statement of Cash Flows 9

Notes to the Financial Statements 10

Directors' Declaration 27

Independent Audit Report 28


ABN 80 001 034 813

Directors' Report

30 June 2015

The directors present their report together with the financial statements on Murwillumbah Golf Club Limited ("theCompany") for the financial year ended 30 June 2015.

Information on directors

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

Keith F O'Grady

Qualifications General Manager Williams Group Australia Pty Ltd, Director 19 years

Special responsibilities Chairman & Ex. Official member of all Committees

Rick Souter

Qualifications Director 3 years, Retired Teacher

Special responsibilities Member of Match Committee

Marilyn Parkes

Qualifications Director 5 years

Special responsibilities Member of Finance Committee

Graham Nelson

Qualifications Director 3 years, Retired

Special responsibilities Chairman House Committee

Neil Fogo


Special responsibilities Captain, Chairman Match Committee

Wayne Kendrigan

Qualifications Accountant, Director 4 years

Special responsibilities Chairman of Finance Committee

Warren D Colefax


Special responsibilities Chairman Greens Committee

Samuel Steen

Qualifications Director 2 years, Retired

Special responsibilities Member Greens Committee

Graham Rosenbaum

Qualifications Director 2 years, Retired School Teacher

Special responsibilities Member House Committee

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

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ABN 80 001 034 813

Directors' Report

30 June 2015

Objectives and Strategies

ObjectivesThe short and long term objectives of the Murwillumbah Golf Club Limited are to ensure that the Company's financialposition remains sound for both the short and long term, ensuring that members and patrons can enjoy their club formany years to come.

StrategyThe strategy that the Company employs to achieve those objectives is to:

Carefully monitor income and expenditure to improve operating profit;

Introduce new ideas that will attract more people to the club and improve income streams;

Continually strive towards improving amenities and facilities for Members and Patrons.

Principal activities

The principal activity of the Company during the financial year remained unchanged and were the provision of sportingand social activities for members.

These principal activities assisted in achieving the Company's objectives by providing the best facilities and bycontinually looking at ways to attract participants to both sporting and social activities. This has provided the Companywith an excellent source of income so the Company can continue to make improvements and remain viable into thefuture. The Company has to ensure that it continues to provide a quality venue for members and visitors to enjoy thefacilities both socially and through the game of golf. The Company has promoted its facilities to sporting organisationsand visitors in New South Wales and Queensland.

No significant changes in the nature of the Company's activity occurred during the financial year.

Operating Results

The operating loss made by the Company during the financial year was $ (1,635) (2014: $ 181,435). This was madeup of the following:

2015

$

2014

$

Parent Club Operating Profit / (Loss) 5,317 170,705

Murwillumbah Veterans Net Profit / (Loss) (3,924) 3,964

Women's Golf Net Profit / (Loss) (3,028) 6,766

Net Profit for Current Year (1,635) 181,435

No income tax is payable thereon.

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ABN 80 001 034 813

Directors' Report

30 June 2015

Review of Operations

The financial operations of the Company during the year are summarised as follows:

2015

$

2014

$

Bar Trading:

Sales 746,963 807,219

Gross profit 461,023 491,600

Gross profit percentage %61.72 %60.90

Net profit 175,235 210,134

Net profit percentage %23.46 %26.03

Poker Machines:

Revenue 561,842 567,476

Less: Expenses (143,062) (186,125)

418,780 381,351

Other revenue and income 1,508,768 1,548,205

Total revenue and other income 2,817,573 2,922,900

Less: Total expenses (2,819,208) (2,741,465)

Profit/(loss) from continuing operations (1,635) 181,435

Members guarantee

Murwillumbah Golf Club Limited is a company limited by guarantee. In the event of, and for the purpose of winding upof the Company, the amount capable of being called up from each member is limited to $ 1, subject to the provisionsof the Company's constitution.

The number of members as at 30 June 2015 is 2,142 (2014: 2,032). At 30 June 2015 the collective liability of memberswas $ 2,142 (2014: $ 2,032).

Core/ Non-Core Property

Directors advise that Core Property, as defined by section 41J of the Registered Clubs Act (1976), is the real propertyowned and occupied by Murwillumbah Golf Club Limited comprising the defined premises of the club being theclubhouse, golf shop, and golf course sheds; the golf course and its environs and any facility provided by the club forthe use of its members and their guests but specifically excluding the cottage currently leased.

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ABN 80 001 034 813

Directors' Report

30 June 2015

Meetings of directors

During the financial year, 12 meetings of directors (including committees of directors) were held. Attendances by eachdirector during the year were as follows:

Directors'Meetings

Numbereligible to

attendNumberattended

Keith F O'Grady 12 12

Rick Souter 12 8

Marilyn Parkes 12 10

Graham Nelson 12 12

Neil Fogo 12 12

Wayne Kendrigan 12 12

Warren D Colefax 12 10

Samuel Steen 12 10

Graham Rosenbaum 12 11

Auditor's independence declaration

The auditor's independence declaration in accordance with section 307C of the Corporations Act 2001 for the yearended 30 June 2015 has been received and can be found on page 5 of the financial report.

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

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

Keith O'Grady

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

Wayne Kendrigan

Dated at Murwillumbah this 19th day of September 2015

4

Auditor's Independence Declaration

As lead auditor for the audit of the financial report of Murwillumbah Golf Club Limited for the yearended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been nocontraventions of:

(i) the auditor independence requirements as set out in the Corporations Act 2001 in relation tothe audit; and

(ii) any applicable code of professional conduct in relation to the audit.

THOMAS NOBLE & RUSSELLCHARTERED ACCOUNTANTS

································································································································································································································································································································································································································································································································

G W DWYER (Partner)Registered Company Auditor

Dated at Lismore this 19th day of September 2015

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ABN 80 001 034 813

Statement of Profit or Loss and Other Comprehensive Income


Note

2015

$

2014

$

Revenue 4 2,815,755 2,925,907

Other income 4 1,818 (3,007)

Expenses 5 (2,774,697) (2,681,757)

Finance Costs (44,511) (59,708)

Profit before income tax (1,635) 181,435

Income tax expense 2(c) - -

Profit for the year (1,635) 181,435

Other comprehensive income

Items that will not be reclassified subsequently to profit or loss - -

Items that will be reclassified to profit or loss when specific conditions are met - -

Total comprehensive income for the year (1,635) 181,435

The accompanying notes form part of these financial statements.6


ABN 80 001 034 813

Statement of Financial Position

As At 30 June 2015

Note

2015

$

2014

$

ASSETS

CURRENT ASSETS

Cash and Cash Equivalents 6 209,191 239,393

Trade and other receivables 7 10,671 12,925

Inventories 8 90,279 80,809

Other assets 9 9,506 10,002

TOTAL CURRENT ASSETS 319,647 343,129

NON-CURRENT ASSETS

Property, Plant and Equipment 10 4,938,363 5,013,787

Intangible assets 11 220,000 220,000

TOTAL NON-CURRENT ASSETS 5,158,363 5,233,787

TOTAL ASSETS 5,478,010 5,576,916

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 12 165,695 131,712

Borrowings 13 448,326 669,500

Employee benefits 14 184,861 156,694

Other liabilities 15 467,902 475,588

TOTAL CURRENT LIABILITIES 1,266,784 1,433,494

NON-CURRENT LIABILITIES

Borrowings 13 93,166 24,782

Employee benefits 14 3,494 2,439

TOTAL NON-CURRENT LIABILITIES 96,660 27,221

TOTAL LIABILITIES 1,363,444 1,460,715

NET ASSETS 4,114,566 4,116,201

EQUITY

Reserves 16 2,226,489 2,226,489

Retained earnings 1,888,077 1,889,712

TOTAL EQUITY 4,114,566 4,116,201



ABN 80 001 034 813

Statement of Changes in Equity


2015

RetainedEarnings

$

AssetRevaluation

Surplus

$

Total

$

Balance at 1 July 2014 1,889,712 2,226,489 4,116,201

Net profit/(loss) for the year (1,635) - (1,635)

Balance at 30 June 2015 1,888,077 2,226,489 4,114,566

2014

RetainedEarnings

$

AssetRevaluation

Surplus

$

Total

$

Balance at 1 July 2013 1,708,277 2,226,489 3,934,766

Net profit/(loss) for the year 181,435 - 181,435

Balance at 30 June 2014 1,889,712 2,226,489 4,116,201



ABN 80 001 034 813

Statement of Cash Flows


Note

2015

$

2014

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 2,814,568 2,930,079

Payments to suppliers and employees (2,307,457) (2,250,981)

Interest paid (44,511) (59,708)

Net cash provided by operating activities 462,600 619,390

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment (236,603) (501,274)

Net cash used in investing activities (236,603) (501,274)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of borrowings (220,000) (260,000)

Repayment of finance lease liabilities (35,253) (92,090)

Net cash used in financing activities (255,253) (352,090)

Net increase/(decrease) in cash and cash equivalents held (29,256) (233,974)

Cash and cash equivalents at beginning of year 238,447 472,421

Cash and cash equivalents at end of financial year 6(a) 209,191 238,447



ABN 80 001 034 813

Notes to the Financial Statements


The financial report covers Murwillumbah Golf Club Limited as an individual entity. Murwillumbah Golf Club Limited is anot-for-profit Company limited by guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of Murwillumbah Golf Club Limited is Australian dollars.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance with theAustralian Accounting Standards - Reduced Disclosure Requirements, Australian Accounting Interpretations, otherauthoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

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

Significant accounting policies adopted in the preparation of these financial statements are presented below and areconsistent with prior reporting periods unless otherwise stated.

2 Summary of Significant Accounting Policies

(a) Revenue

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

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

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

Financial assistance

Financial assistance received is recognised at fair value where there is reasonable assurance that the grant will bereceived and all attaching conditions will be complied with.

Sale of goods

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

Interest revenue

Interest is recognised using the effective interest method.

Rendering of service

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

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ABN 80 001 034 813



2 Summary of Significant Accounting Policies (continued)

(a) Revenue (continued)

Rendering of service (continued)

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognised that arerecoverable.

(b) Leases

Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not thelegal ownership that are transferred to the Company are classified as finance leases.

Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair valueof the leased property or the present value of the minimum lease payments, including any guaranteed residual values.Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

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

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

(c) Income Tax

The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(d) Cash and Cash Equivalents

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

Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flows and are presentedwithin current liabilities on the statement of financial position.

(e) Financial Instruments

Financial instruments are recognised initially using trade date accounting, i.e. on the date that the Company becomesparty to the contractual provisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instrumentsmeasured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial Assets

Financial assets are divided into the following categories which are described in detail below:

loans and receivables;

financial assets at fair value through profit or loss;

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ABN 80 001 034 813




(e) Financial Instruments (continued)

available-for-sale financial assets; and

held-to-maturity investments.

Financial assets are assigned to the different categories on initial recognition, depending on the characteristics of theinstrument and its purpose. A financial instrument’s category is relevant to the way it is measured and whether anyresulting income and expenses are recognised in profit or loss or in other comprehensive income.

All income and expenses relating to financial assets are recognised in the statement of profit or loss and othercomprehensive income in the ‘finance income’ or ‘finance costs’ line item respectively.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted inan active market. They arise principally through the provision of goods and services to customers but also incorporateother types of contractual monetary assets.

After initial recognition these are measured at amortised cost using the effective interest method, less provision forimpairment. Any change in their value is recognised in profit or loss.

The Company’s trade and most other receivables fall into this category of financial instruments.

Discounting is omitted where the effect of discounting is considered immaterial.

Significant receivables are considered for impairment on an individual asset basis when they are past due at thereporting date or when objective evidence is received that a specific counterparty will default.

The amount of the impairment is the difference between the net carrying amount and the present value of the futureexpected cash flows associated with the impaired receivable.

In some circumstances, the Company renegotiates repayment terms with customers which may lead to changes in thetiming of the payments, the Company does not necessarily consider the balance to be impaired, however assessmentis made on a case-by-case basis.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets:

acquired principally for the purpose of selling in the near future

designated by the entity to be carried at fair value through profit or loss upon initial recognition or

which are derivatives not qualifying for hedge accounting.

Assets included within this category are carried in the statement of financial position at fair value with changes in fairvalue recognised in finance income or expenses in profit or loss.

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Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixedmaturity. Investments are classified as held-to-maturity if it is the intention of the Company's management to hold themuntil maturity.

Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method, withrevenue recognised on an effective yield basis. In addition, if there is objective evidence that the investment has beenimpaired, the financial asset is measured at the present value of estimated cash flows. Any changes to the carryingamount of the investment are recognised in profit or loss.

Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that do not qualify for inclusion in any of the othercategories of financial assets or which have been designated in this category.

Investments in unlisted entities are reported at cost less any impairment charges, as their fair value cannot currentlybe reliably estimated.

All other available-for-sale financial assets are measured at fair value, with subsequent changes in value recognised inother comprehensive income.

Gains and losses arising from financial instruments classified as available-for-sale are only recognised in profit or losswhen they are sold or when the investment is impaired.

In the case of impairment or sale, any gain or loss previously recognised in equity is transferred to the profit or loss.

Financial liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financialliabilities depending on the purpose for which the liability was acquired.

The Company‘s financial liabilities include borrowings, trade and other payables (including finance lease liabilities),which are measured at amortised cost using the effective interest rate method.

Impairment of financial assets

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

Financial assets at amortised cost

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

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

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ABN 80 001 034 813





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

Available-for-sale financial assets

A significant or prolonged decline in value of an available-for-sale asset below its cost is objective evidence ofimpairment, in this case, the cumulative loss that has been recognised in other comprehensive income is reclassifiedfrom equity to profit or loss as a reclassification adjustment. Any subsequent increase in the value of the asset is takendirectly to other comprehensive income.

(f) Inventories

Inventories consists of beer, spirits, wines, other sundry bar stock and golf shop stock. Inventories are measured at thelower of cost and net realisable value. Cost of inventory is determined using the first-in-first-out basis and is net of anyrebates and discounts received.

(g) Property, Plant and Equipment

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

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

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on a straight-line or diminishing value basisover the assets useful life to the Company, commencing when the asset is ready for use. Recent acquisitions arebeing depreciated by the straight-line basis and all assets will be converted to this method as they are replaced.

Leased assets and leasehold improvements are amortised over the shorter of either the unexpired period of the leaseor their estimated useful life.

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

Fixed asset class Depreciation rateStraight-Line Diminishing Value

Buildings and Improvements 2.5% - 10% -

Course Infrastructure 2% - 20% -

Plant and Equipment 5% - 22.5% 7.5% - 37.5%

Furniture and Fittings 20% - 25% 37.5%

Poker Machines 20% - 25% 37.5%

Crockery, cutlery and glassware are recorded at cost and replacements are charged against the income of that year.

Course infrastructure items of trees, gardens and nursery are recorded at cost and replacements will be chargedagainst the profits of that year.

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

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ABN 80 001 034 813




(g) Property, Plant and Equipment (continued)

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains andlosses are included in the statement of profit or loss and other comprehensive income.

(h) Intangibles

Poker Machine Entitlements

Poker machine entitlements were granted to the Company by the NSW government prior to 1 July 2004. Pokermachine entitlements have been recognised in the statement of financial position at their fair value at 1 July 2004which has been deemed to be their cost. Subsequent acquisitions of poker machine entitlements are recognised atcost.

Poker machine entitlements are assessed as being intangible assets with an indefinite useful life and have not beenamortised. Poker machine entitlements are carried at cost in the statement of financial position and are subject to anannual impairment test.

(i) Impairment

At the end of each reporting period, the Company determines whether there is any indication evidence of impairmentfor its non-financial assets.

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

Where assets do not operate independently of other assets, the recoverable amount of the relevant cash-generatingunit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use.Value in use is the present value of the future cash flows expected to be derived from an asset or cash-generating unit.

Where the future economic benefits of an asset are not primarily dependent on the asset's ability to generate net cashinflows and where the Company, if deprived of the asset, would replace its remaining future economic benefits, valuein use shall be determined at the depreciated replacements cost of the asset.

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

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

(j) Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and servicesreceived by the Company during the reporting period which remain unpaid. The balance is recognised as a currentliability with the amounts normally paid within 30 days of recognition of the liability.

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(k) Employee Benefits

Provision is made for the Company's liability for employee benefits arising from services rendered by employees to theend of the reporting period. Employee benefits that are expected to be wholly settled within one year have beenmeasured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than twelve months after the end of the reporting period have beenmeasured at the present value of the estimated future cash outflows to be made for those benefits. In determining theliability, consideration is given to employee wage increases and the probability that the employee may satisfy vestingrequirements. Cashflows are discounted using market yields on corporate bonds with terms to maturity that match theexpected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

Employee benefits are presented as current liabilities in the statement of financial position if the Company does nothave an unconditional right to defer settlement of the liability for at least 12 months after the reporting date regardlessof the classification of the liability for measurement purposes under AASB 119.

(l) Provisions

Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, forwhich it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(m) Goods and Services Tax (GST)

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

Receivables and payable are stated inclusive of GST.

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

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

3 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regardingassumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financialstatements, however as additional information is known then the actual results may differ from the estimates.

The directors have not made any significant accounting estimates or judgements which are likely to affect the futureresults of the Company.

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4 Revenue and Other Income

2015

$

2014

$

Operating Revenue

Sales of goods

- Bar sales 746,963 807,219

- Golf shop sales 305,835 315,325

Total sales of goods 1,052,798 1,122,544

Services rendered:

- Poker machine & Keno revenue 566,860 572,720

- TAB commission 4,044 5,107

- Subscriptions 171,647 167,582

- Affiliation fee 22,360 19,157

- Competition, green fees, cart hire & golfing 710,249 749,037

Total services rendered 1,475,160 1,513,603

Revenue from sub-clubs:

- Murwillumbah Veterans 64,616 66,620

- Women's Golf Murwillumbah 51,875 56,371

Total revenue from sub-clubs 116,491 122,991

Total operating revenue 2,644,449 2,759,138

Non-Operating Revenue

- Poker machine GST subsidy 17,180 17,180

- Net insurance recoveries (1,100) 991

- Rents received 65,051 58,844

- Donations & sponsorship 43,447 34,573

- Other revenue 46,728 55,181

Total non-operating revenue 171,306 166,769

Total revenue 2,815,755 2,925,907

Other Income

Profit / (Loss) on disposal of non-current assets 1,818 (3,007)

Total other income 1,818 (3,007)

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5 Expenses

2015

$

2014

$

Depreciation and Amortisation:

Building and improvements 119,125 113,421

Furniture & fittings, plant & equipment 169,811 167,660

Poker machines 73,876 74,326

Course infrastructure 52,263 48,618

Total depreciation and amortisation 415,075 404,025

Sub-Club Expenses:

Murwillumbah Veterans 68,540 62,656

Womens Golf Murwillumbah 54,903 49,605

Total sub-club expenses 123,443 112,261

Employee costs 932,371 867,388

Cost of goods sold 499,614 528,775

Administration 137,239 130,125

Repairs & maintenance 149,483 129,158

Golf related expenses 112,915 130,117

Electricity & fuel 100,459 127,696

Members entertainment 69,414 80,048

Insurance 39,436 39,282

Operating lease rentals 32,383 20,412

TAB expenses 17,931 18,207

Other expenses 144,934 94,263

Total expenses 2,774,697 2,681,757

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6 Cash and Cash Equivalents

Note

2015

$

2014

$

Cash on Hand 53,000 53,060

Cash at bank:

Trading account 79,906 102,834

On-line saver account - 303

Keno account 2,594 4,037

TAB account 929 4,601

Total cash at bank 136,429 164,835

Sub-clubs:

Womens Golf 28,274 31,302

Veterens Golf 44,488 43,256

Total sub-clubs 72,762 74,558

Total cash and cash equivalents 6(a) 209,191 239,393

(a) Reconciliation of cash

Cash and Cash equivalents reported in the statement of cash flows are reconciled to the equivalent items in thestatement of financial position as follows:

Cash and cash equivalents 6 209,191 239,393

Bank overdrafts 13 - (946)

Balance as per statement of cash flows 209,191 238,447

7 Trade and Other Receivables

CURRENT

Debtors 5,571 7,125

TAB security deposit 5,000 5,000

Accrued income 100 800

Total current trade and other receivables 10,671 12,925

8 Inventories

CURRENT

At cost:

Bar and golf shop stock 90,279 80,809

Total current inventories 90,279 80,809

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9 Other Assets

2015

$

2014

$

CURRENT

Prepayments 9,506 10,002

Total current other assets 9,506 10,002

10 Property, Plant and Equipment

Freehold land

At cost 330,000 330,000

Total freehold land 330,000 330,000

Buildings and improvements

At cost 3,696,294 3,654,752

Accumulated depreciation (891,005) (774,640)

Total buildings and improvements 2,805,289 2,880,112

Furniture & fittings, plant & equipment

At cost 1,937,425 1,982,733

Accumulated depreciation (983,283) (1,020,796)

Total furniture & fittings, plant & equipment 954,142 961,937

Poker machines

At cost 447,977 396,164

Accumulated depreciation (189,426) (170,203)

Total poker machines 258,551 225,961

Course infrastructure

At cost 2,203,503 2,176,636

Accumulated depreciation (1,613,122) (1,560,859)

Total course infrastructure 590,381 615,777

Total property, plant and equipment 4,938,363 5,013,787

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ABN 80 001 034 813



10 Property, Plant and Equipment (continued)

(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:

Land

$

Building andImprovements

$

Furniture &Fittings, Plant& Equipment

$

PokerMachines

$

CourseInfrastructure

$

Total

$

Year ended 30 June 2015

Balance at the beginning of year 330,000 2,880,112 961,937 225,961 615,777 5,013,787

Additions - 44,326 214,194 109,475 26,867 394,862

Disposals - written down value - (24) (52,178) (3,009) - (55,211)

Depreciation expense - (119,125) (169,811) (73,876) (52,263) (415,075)

Balance at the end of the year 330,000 2,805,289 954,142 258,551 590,381 4,938,363

Leased assets are pledged as security for finance leases (refer Note 17).

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ABN 80 001 034 813



11 Intangible Assets

2015

$

2014

$

Poker machine entitlements

Cost 220,000 220,000

Total Intangibles 220,000 220,000

12 Trade and Other Payables

CURRENT

Accounts payable and accrued expenses 165,695 131,712

Total current trade and other payables 165,695 131,712

13 Borrowings

CURRENT

Secured liabilities:

Bank overdraft 6(a) - 946

Bank loans 410,000 630,000

Finance lease liabilities 17(a) 38,326 38,554

Total current borrowings 448,326 669,500

NON-CURRENT

Secured liabilities:

Finance lease liabilities 17(a) 93,166 24,782

Total non-current borrowings 93,166 24,782

(a) Bank loan facilities

Bank loans are classified as current liabilities as they are subject to annual review by the Commonwealth Bankof Australia. Current loan facilities in place are for a period of 2 years maturing in February 2016. Thesefacilities include interest only payments with a variable interest rate of 6.20% per annum and total $850,000. A$20,000 corporate card facility is also in place.

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ABN 80 001 034 813



13 Borrowings (continued)

(b) Securities pledged

The Commonwealth Bank of Australia holds a registered first mortage over the Company's freehold land andbuildings at Murwillumbah to secure the term loan.

The carrying amounts of assets pledged as security for borrowings are:

2015

$

2014

$

First Mortgage

Freehold land 330,000 330,000

Buildings and improvements 2,805,289 2,880,112

Total assets pledged as security for borrowings 3,135,289 3,210,112

(c) Leased liabilities

Leased liabilities are secured by the underlying leased assets.

(d) Fair value

The fair value of borrowings equals their carrying amount.

14 Employee Benefits

CURRENT

Long service leave 73,120 64,541

Annual leave 111,741 92,153

Total current employee benefits 184,861 156,694

NON-CURRENT

Long service leave 3,494 2,439

Total non-current employee benefits 3,494 2,439

The current long service leave provision includes all employees who have accumulated 10 years service and thereforehave an unconditional right to take long service leave. The amount of long service leave expected to be taken byemployees during the financial year is $13,828 (2014: $Nil).

15 Other Liabilities

CURRENT

Unearned income 406,160 404,823

Net GST payable 38,299 50,196

Prize liability 23,443 20,569

Total current other liabilities 467,902 475,588

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ABN 80 001 034 813



16 Reserves

2015

$

2014

$

Asset revaluation reserve

Opening balance 2,226,489 2,226,489

Total reserves 2,226,489 2,226,489

(a) Asset revaluation reserve

The asset revaluation reserve records fair value movements on property, plant and equipment.

17 Capital and Leasing Commitments

(a) Finance Leases

Minimum lease payments:

- not later than one year 48,034 42,714

- between one year and five years 103,501 26,295

Minimum lease payments 151,535 69,009

Less: finance changes (20,043) (5,673)

Present value of minimum lease payments 131,492 63,336

Finance leases are in place for poker machines, golf buggies and other course equipment which are leasedunder terms of between 3 and 5 years. Lease liabilities are secured by the underlying leased assets. The netcarrying amount of assets under finance lease at the end of the reporting period was $178,933 (2014: $74,979).

(b) Operating Leases

Minimum lease payments under non-cancellable operating leases:

- not later than one year 27,520 27,319

- between one year and five years 17,866 19,580

Total minimum lease payments 45,386 46,899

Operating leases have been taken out for Golf Course Equipment over a 2 to 4 year term.

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ABN 80 001 034 813



18 Financial Risk Management

The Company's financial instruments consist mainly of deposits with banks, short-term investments, accountsreceivable and payable, bank loans and overdrafts.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in theaccounting policies to these financial statements, are as follows:

Note

2015

$

2014

$

Financial Assets

Cash and cash equivalents 6 209,191 239,393

Loans and receivables 7 10,671 12,925

Total financial assets 219,862 252,318

Financial Liabilities

Financial liabilities at amortised cost:

- Trade and other payables 12 165,695 131,712

- Borrowings 13 541,492 694,282

Total financial liabilities 707,187 825,994

19 Fair Value Measurement

The Company does not measure any assets or liabilities at fair value on a recurring or non-recurring basis in thestatement of financial position after initial recognition.

20 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $ 1 eachtowards meeting any outstandings and obligations of the Company. At 30 June 2015 the number of members was2,142 (2014: 2,032).

21 Key Management Personnel Disclosures

The total remuneration paid to key management personnel of the Company is $ 311,636 (2014: $ 285,050).

Other key management personnel transactions

For details of other transactions with key management personnel, refer to Note 22: Related Parties.

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ABN 80 001 034 813



22 Related Parties

(a) The Company's main related parties are as follows:

(i) Key management personnel:

Any person(s) having authority and responsibility for planning, directing and controlling the activities of theentity, directly or indirectly, including any director (whether executive or otherwise) of that entity are consideredkey management personnel.

For details of remuneration disclosures relating to key management personnel, refer to Note 21: KeyManagement Personnel (KMP) Disclosures.

Other transactions with KMP and their related entities are shown below.

(ii) Other related parties include close family members of key management personnel and entities that arecontrolled.

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

(b) Transactions with related parties

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

There were no related party transactions during the year (2014: None), except for the amounts disclosed inNote 21.

23 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 30 June 2015 (30 June 2014: None).

24 Events Occurring After the Reporting Date

The financial report was authorised for issue on 19 September 2015 by the Board of Directors.

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

25 Company Details

The registered office of the Company is:


233 Byangum Road

Murwillumbah NSW 2484

26


ABN 80 001 034 813

Directors' Declaration

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 6 to 26, are in accordance with the Corporations Act 2001and:

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

b. give a true and fair view of the financial position as at 30 June 2015 and of the performance for the year ended onthat date of the Company.

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

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

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

Keith O'Grady

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

Wayne Kendrigan

Dated at Murwillumbah this 19th day of September 2015

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MURWILLUMBAH GOLF CLUB LIMITEDABN 80 001 034 813

INDEPENDENT AUDITOR'S REPORTFOR THE YEAR ENDED 30 JUNE 2015

To the members of Murwillumbah Golf Club Limited

Report on the Financial Report

We have audited the accompanying financial report of Murwillumbah Golf Club Limited ("theCompany"), which comprises the statement of financial position as at 30 June 2015, the statementof profit or loss and other comprehensive income, statement of changes in equity and statement ofcash flows for the year then ended, notes comprising a summary of significant accounting policiesand other explanatory information, and the directors' declaration, for the Company.

Directors' Responsibility for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives atrue and fair view in accordance with Australian Accounting Standards - Reduced DisclosureRequirements and the Corporations Act 2001 and for such internal control as the directorsdetermine is necessary to enable the preparation of the financial report that is free from materialmisstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. Weconducted our audit in accordance with Australian Auditing Standards. Those standards requirethat we comply with relevant ethical requirements relating to audit engagements and plan andperform the audit to obtain reasonable assurance about whether the financial report is free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial report. The procedures selected depend on the auditor’s judgement,including the assessment of the risks of material misstatement of the financial report, whether dueto fraud or error. In making those risk assessments, the auditor considers internal control relevantto the Company’s preparation of the financial report that gives a true and fair view in order todesign audit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the Company’s internal control. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonableness ofaccounting estimates made by the directors, as well as evaluating the overall presentation of thefinancial report.

Our audit did not involve an analysis of the prudence of business decisions made by directors ormanagement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

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Independence

In conducting our audit, we have complied with the independence requirements of the CorporationAct 2001.

We confirm that the independence declaration required by the Corporations Act 2001, given to thedirectors of the Company on 19th September 2015, would be in the same terms if provided to thedirectors as at the time of this auditor's report.

Opinion

In our opinion, the financial report of Murwillumbah Golf Club Limited is in accordance with theCorporations Act 2001, including:

(a) giving a true and fair view of the Company’s financial position as at 30 June 2015 and of itsperformance for the year ended on that date; and

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements andthe Corporations Regulations 2001.

Matters Relating to the Electronic Presentation of the Audited Financial Report

This auditor's report relates to the financial report of the Company for the financial year ended 30June 2015 published in the annual report and included on the Company's website. The Company'sdirectors are responsible for the integrity of the Company's website. We have not been engaged toreport on the integrity of this website. The auditor's report refers only to the financial reportidentified above. It does not provide an opinion on any other information which may have beenhyperlinked to/from the financial report. If users of the financial report are concerned with theinherent risks arising from publication on a website, there are advised to refer to the hard copy ofthe audited financial report to confirm the information contained in this website version of thefinancial report.

Dated at Lismore this 19th day of September 2015

THOMAS NOBLE & RUSSELLCHARTERED ACCOUNTANTS

................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................G W DWYER (Partner)Registered Company Auditor

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