(A Company Limited by Guarantee) ANNUAL …...L I M I T E D (ABN 97 001 011 383) (A Company Limited by Guarantee) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018 CONTENTS President’s

L I M I T E D (ABN 97 001 011 383)

(A Company Limited by Guarantee)

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2018

CONTENTS

President’s Report General Manager’s Report Appendix A – Financial Report Appendix B – Supplementary Information Appendix C – Bega RSL Club Mortality & Relief Fund Summary Appendix D – Donations Listing

L I M I T E D (ABN 97 001 011 383)

PRESIDENT’S REPORT

Dear Members, I am pleased to report a trading profit for 2018 of $240,000, an increase of $128,000 from last year. It is also very pleasing to finally have all the Stratum leased. It has been a long time coming and I would like specially to thank David Mitchell for all his hard work in this area. Along with the lease of some of our poker machines and the lease of Auckland street we have almost half a million dollars of revenue coming in outside of the clubs. This I am sure will see the Club in a very favourable position into the future. This has allowed us to reduce our liabilities by nearly $500,000. The Board of Directors will vigorously continue to pay down our debt as quickly as possible. While it is still disappointing with the loss from the Golf Club of $108,000 this is down $25,000 on last year. We all know how hard it is to run a golf club profitably. With this in mind, we have started talks with Lincoln Place who are developers of Life Style Communities. It is only early days and we have a long way to go, however if this development does go ahead it will have dramatic change for the Golf Club. If we get to this point a special meeting will be held to discuss and inform all members of this proposal. Another pleasing aspect for the Club is our new caterers Rob and Katie who are doing an excellent job with both great food and service. This has seen a significant lift in our bar sales. In conclusion, I would like to thank all our volunteer workers and staff for all their efforts this year. Finally, I would like to thank my fellow Directors for all their efforts throughout the year. Howard Blacker President

L I M I T E D (ABN 97 001 011 383)

GENERAL MANAGER’S REPORT

It is with pleasure that I submit my report for the end of the 2018 financial year with a total profit of $240,523. The EBITDA result of $719,405 (20.7%) is a very pleasing result and will allow us to pursue the board’s aggressive loan repayment strategy. Last year I reported a disappointing trend in Club Bega bar sales which continued for the first half of this year. However, as most of you will have most likely witnessed, bringing Rob and Katie into the kitchen has had a dramatic effect on numbers visiting the club and also on bar sales which were up just $6,962 to the end of August but increased by $55K in the 4 months till the end on December. My sincere thanks to Rob, Katie and staff for providing great food and service. In last year’s report, I advised we were well involved in renting the other half of the Stratum rental area on top of Sapphire Market Place. I can advise that Grand Pacific Health have moved into that space, Local Lands and Water NSW have consolidated into 1 unit and Tulgeen Disability Services have moved into the vacated unit. Along with the RMS building, our rental spaces are fully tenanted with long leases. Another source of non-core business income has been secured in the form of a 5-year lease of 14 gaming entitlements to a Sydney club worth $76K per annum, most of which will be shown in the Country Clubs “other income” figures. These entitlements were idle for some time and thus not producing income. I can confirm that we are in early negotiations with Lincoln Place to progress a “lifestyle Community” at the Country Club which, if successful, will be a game changer to the financial fortunes of the club. More details to follow as we progress the proposal. I also wrote in my report last year that Mark and I had aimed to reduce his course maintenance spend by $40k which you can see he all but achieved and still presented a top-quality course. Unfortunately, rising fuel and electricity costs effected the overall course spend. I would like to thank Mark and his staff for their great work throughout the year. My thanks also to Ken and Phil for their great work on the greens and surrounds at Club Bega. I would like to thank all the bar and administrative staff for their efforts over the last year as we strive to offer the best products and service in the area. A special thanks go to all the volunteer workers at Club Bega and Bega Country Club course and bistro areas for going beyond the call of duty in many instances. To all our sponsors, too many to name, thank you again for supporting our clubs. Finally, I would like to thank the board of directors for their input and support during what has been a very challenging year when some difficult decisions needed to be made. To all our loyal members who have supported our clubs over the years, I thank you on behalf of the board of directors. David Mitchell General Manager

Bega RSL Club Limited ABN: 97 001 011 383

A Company Limited by Guarantee

APPENDIX A - Financial Statements For the Year Ended 31 December 2018


Contents For the Year Ended 31 December 2018

Page

Financial Statements Directors' Report 2 Auditors Independence Declaration under Section 307C of the Corporations Act 2001 4 Statement of Profit or Loss and Other Comprehensive Income 5 Statement of Financial Position 6 Statement of Changes in Equity 7 Statement of Cash Flows 8 Notes to the Financial Statements 9 Directors' Declaration 23 Independent Audit Report 24 Appendix B - Supplementary Information 26


Directors' Report 31 December 2018

2

The directors present their report on Bega RSL Club Limited for the financial year ended 31 December 2018.

1. General information

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

Qualifications Investor

Date of Appointment 25 March 2010

Richard COCK

Qualifications Maintenance

Date of Appointment 28 March 2012

David JONES

Qualifications Retired Teacher

Date of Appointment 17 April 2014

Brian MOORE

Qualifications Retired Manager


Jason HEFFERNAN

Qualifications Engineer

Date of Appointment 4 August 2016

Stephen KENNEDY

Qualifications Traffic Management


Michael HAIGH

Qualifications Self Employed

Date of Appointment 2 May 2018

John DEDMAN

Qualifications Retired Executive Officer South East NSW Area Consultative Committee (SEACC).

Date of Resignation 2 May 2018

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

Principal activities The principal activity of Bega RSL Club Limited during the financial year were that of a Registered Club and provision of sporting facilities. No significant changes in the nature of the Company's activity occurred during the financial year.

Short term objectives The Company's short term objectives are to provide quality Club and sporting facilities in Bega for the benefit of members and guests.


Directors' Report 31 December 2018

3

Long term objectives The Company's long term objectives are to provide quality Club and sporting facilities in Bega for the benefit of members and guests.

Strategy for achieving the objectives To achieve these objectives, the Company has adopts current registered club industry practices and strategies to ensure that the short and long term objectives are met.

Performance measures The following measures are used within the Company to monitor performance:

the quality of the service and facilities provided to members; the ability to generate strong cash flows from its operating activities; the trading and overall financial result; and the stability of the balance sheet with respect to the Company’s liquidity and the total levels of debt

Members' guarantee

Bega RSL Club Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each member and any person who ceased to be a member in the year prior to the winding up, is limited to $10 subject to the provisions of the company's constitution. At 31 December 2018 the collective liability of members was $30,850 (2017: $26,260).

2. Other items

Meetings of directors During the financial year, 13 meetings of directors (including special meetings of directors) were held. Attendances by each director during the year were as follows:

Directors' Meetings

Number eligible to

attend Number attended

Howard BLACKER 13 13

Richard COCK 13 10

John DEDMAN 3 2

David JONES 13 13

Michael HAIGH 10 10

Jason HEFFERNAN 13 12

Stephen KENNEDY 13 13

Brian MOORE 13 13

3. Auditor's Independence Declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 31 December 2018 has been received and can be found on page 4 of the financial report.

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

Howard BLACKER

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

David JONES

BEGA Dated 28 February 2019

Auditors Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Bega RSL Club Limited

4

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2018, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

KOTHES Chartered Accountants

SIMON BYRNE Partner Registered Company Auditor (#153624) BEGA 28 February 2019


Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2018

The accompanying notes form part of these financial statements. 5

Note

2018

$

2017

$

Income 5 3,477,822 3,234,928

Gain on disposal of assets 3,183 19,520

Cost of sales (374,096) (356,144)

Employee benefits expense (1,108,053) (1,155,658)

Depreciation and amortisation expense (399,380) (356,659)

Provision for doubtful debts expense - (4,336)

Finance costs - Borrowing costs (79,052) (49,730)

Advertising (49,006) (46,035)

Entertainment expenses (118,662) (106,454)

Equipment rental (42,099) (48,827)

Insurance (97,248) (85,904)

Lighting, power and gas (114,557) (85,432)

Poker machine tax and monitoring (188,377) (197,211)

Printing, postage & stationery (12,179) (18,465)

Promotions (80,266) (94,453)

Rates, land tax and rent (80,074) (70,430)

Repairs and maintenance (314,923) (291,221)

Other expenses (182,510) (175,154)

Surplus before income tax 240,523 112,335 Income tax expense - -

Surplus for the year 240,523 112,335

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

Total comprehensive income for the year 240,523 112,335

The Company has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement.


Statement of Financial Position 31 December 2018


Note

2018

$

2017

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 7 139,100 228,883

Trade and other receivables 8 91,949 152,290

Inventories - stock on hand 30,257 29,241

TOTAL CURRENT ASSETS 261,306 410,414

NON-CURRENT ASSETS

Trade and other receivables - TAB security bond 5,000 5,000

Property, plant and equipment 9 3,471,501 3,691,317

Investment properties 10 4,501,281 4,444,113

TOTAL NON-CURRENT ASSETS 7,977,782 8,140,430

TOTAL ASSETS 8,239,088 8,550,844

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 11 255,860 313,520

Borrowings 12 236,422 545,000

Short-term provisions 13 34,584 55,588

Employee benefits 14 141,859 121,785

TOTAL CURRENT LIABILITIES 668,725 1,035,893

NON-CURRENT LIABILITIES

Borrowings 12 1,632,889 1,818,000

TOTAL NON-CURRENT LIABILITIES 1,632,889 1,818,000

TOTAL LIABILITIES 2,301,614 2,853,893

NET ASSETS 5,937,474 5,696,951

EQUITY

Retained earnings 5,937,474 5,696,951

TOTAL EQUITY 5,937,474 5,696,951

The Company has not restated comparatives when initially applying AASB 9, the comparative information has been prepared under AASB 139 Financial Instruments: Recognition and Measurement.


Statement of Changes in Equity For the Year Ended 31 December 2018


2018

Retained Earnings

$

Balance at 1 January 2018 5,696,951

Surplus for the year 240,523

Balance at 31 December 2018 5,937,474

2017

Retained Earnings

$

Balance at 1 January 2017 5,584,616

Surplus for the year 112,335

Balance at 31 December 2017 5,696,951


Statement of Cash Flows For the Year Ended 31 December 2018


Note

2018

$

2017

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers and members 3,840,941 3,520,709

Payments to suppliers and employees (3,124,620) (2,876,595)

Interest received 186 2,148

Interest paid (79,052) (49,730)

Net cash provided by/(used in) operating activities 637,455 596,532

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for property, plant and equipment (91,290) (407,037)

Payments for investment property (156,081) (2,390,900)

Proceeds from sale of property, plant and equipment 13,822 20,460

Net cash used by investing activities (233,549) (2,777,477)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from borrowings 50,000 1,900,000

Repayment of borrowings (543,689) (203,993)

Net cash used by financing activities (493,689) 1,696,007

Net increase/(decrease) in cash and cash equivalents held (89,783) (484,938)

Cash and cash equivalents at beginning of year 228,883 713,821

Cash and cash equivalents at end of financial year 7 139,100 228,883


Notes to the Financial Statements For the Year Ended 31 December 2018

9

The financial report covers Bega RSL Club Limited as an individual entity. Bega RSL Club Limited is a not-for-profit Company limited by guarantee, incorporated and domiciled in Australia. The Company was incorporated as a Company limited by guarantee on 13 July 1972 (# 001 011 383) under the NSW Companies Act, 1961, NSW. It is registered with the Australian Business Register - Australian Business Number 97 001 011 383 and is registered for Goods & Services Tax purposes. The registered office and principal place of business of the company is 82 Gipps Street, BEGA, NSW, 2550.

The functional and presentation currency of Bega RSL Club Limited is Australian dollars.

The financial report was authorised for issue by the Directors on 28 February 2019.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

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

2 Change in Accounting Policy

Financial Instruments - Adoption of AASB 9

The Company has adopted AASB 9 Financial Instruments for the first time in the current year.

As part of the adoption of AASB 9, the Company adopted consequential amendments to other accounting standards arising from the issue of AASB 9 as follows:

AASB 101 Presentation of Financial Statements requires the impairment of financial assets to be presented in a separate line item in the statement of profit or loss and other comprehensive income. In the comparative year, this information was presented as part of other expenses.

AASB 7 Financial Instruments: Disclosures requires amended disclosures due to changes arising from AASB 9, these disclosures have been provided for the current year.

The key changes to the Company's accounting policy and the impact on these financial statements from applying AASB 9 are described below.

Changes in accounting policies resulting from the adoption of AASB 9 have been applied retrospectively except the Company has not restated any amounts relating to classification and measurement requirements including impairment which have been applied from 1 January 2018.

Classification of financial assets

The financial assets of the Company have been classified into the 'Measured at amortised cost' category on adoption of AASB 9 based on primarily the business model in which a financial asset is managed and its contractual cash flow characteristics.

Impairment of financial assets

The incurred loss model from AASB 139 has been replaced with an expected credit loss model in AASB 9 for assets measured at amortised cost, contract assets and fair value through other comprehensive income. This has had no effect for the recognition of credit loss (bad debt provisions).



10

3 Summary of Significant Accounting Policies

(a) Income Tax

The Company is a Not-for-Profit Entity with a main objective of providing quality sporting facilities in Bega NSW. The Board has reviewed its income tax status and have assessed the Company to be exempt from income tax under section 50-45 of the Income Tax Assessment Act, 1997 (Cth). Consequently, no provision for taxation has been made in the financial statements.

(b) Leases

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

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

(c) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the Company and specific criteria relating to the type of revenue as noted 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.

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 and rewards are transferred and there is no longer any ownership or effective control over the goods.

Rendering of services

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

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

Rental income

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

Subscriptions

Revenue from the provision of membership subscriptions is recognised on a straight line basis over the subscriptions period.




11

Other income

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

(d) Goods and Services Tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payable are stated inclusive of GST. Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(e) Inventories

Inventories are measured at the lower of cost and net realisable value.

(f) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment.

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at the acquisition date fair value.

Land and buildings

Land and buildings are measured using the cost model.

Plant and equipment

Plant and equipment are measured using the cost model.

Depreciation

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

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

The estimated useful lives used for each class of depreciable asset are shown below: Fixed asset class Useful life

Buildings 40 years

Plant and Equipment 3-15 years

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




12

(g) Investment properties

Investment properties are held at cost which includes expenditure that is directly attributable to the acquisition of the investment properties. The investment properties are depreciated on a straight line basis over 40 years.

(h) Financial instruments

Comparative Year

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

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

Impairment of Financial Assets

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

Financial assets at amortised cost

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

Impairment on loans and receivables is reduced through the use of an allowance accounts, all other impairment losses on financial assets at amortised cost are taken directly to the asset. Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.

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

Current Year

Financial instruments are recognised initially on the date that the Company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Classification

On initial recognition, the Company has only ever held financial assets categorised as at 'amortised cost'.




Financial assets

13

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets.

Amortised cost

Assets measured at amortised cost are financial assets where:

the business model is to hold assets to collect contractual cash flows; and

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

The Company's financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the statement of financial position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment.

Interest income is recognised in profit or loss.

Impairment of financial assets

Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financial assets measured at amortised cost.

When determining whether the credit risk of a financial assets has increased significant since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company's historical experience and informed credit assessment and including forward looking information.

The Company uses the presumption that an asset which is more than 30 days past due has seen a significant increase in credit risk.

The Company uses the presumption that a financial asset is in default when the other party is unlikely to pay its credit obligations to the Company in full, without recourse to the Company to actions such as realising security (if any is held).

Credit losses are measured as the present value of the difference between the cash flows due to the Company in accordance with the contract and the cash flows expected to be received. This is applied using a probability weighted approach.

Trade receivables

Impairment of trade receivables have been determined using the simplified approach in AASB 9 which uses an estimation of lifetime expected credit losses. The Company has determined the probability of non-payment of the receivable and multiplied this by the amount of the expected loss arising from default.




Financial assets

14

The amount of the impairment is recorded in a separate allowance account with the loss being recognised in finance expense. Once the receivable is determined to be uncollectable then the gross carrying amount is written off against the associated allowance.

Where the Company renegotiates the terms of trade receivables due from certain customers, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in profit or loss.

Other financial assets measured at amortised cost

Impairment of other financial assets measured at amortised cost are determined using the expected credit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected credit losses for the next 12 months is recognised. Where the asset has experienced significant increase in credit risk then the lifetime losses are estimated and recognised.

Financial liabilities

The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financial liabilities are measured at amortised cost using the effective interest rate method.

The financial liabilities of the Company comprise trade payables, bank and other loans and finance lease liabilities.

(i) Cash and cash equivalents

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

(j) Employee benefits

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

Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates incorporating bonds rated AAA or AA by credit agencies, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.

(k) Provisions

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

Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period.




15

(l) Net current deficit At 31 December 2018, the company was in a net current liability position of $407,419 (2017: net current liability position $625,479). Notwithstanding this, management have prepared the accounts on a going concern basis on the basis of the following: Included in current liabilities is long service leave of $62,684, a significant portion of which is not expected

to be called upon in the next 12 months. The company records significant positive operating cash flows each year. The company has $1,195,000 of undrawn borrowing facilities available at 31 December 2018.

(m) Adoption of new and revised accounting standards

The Company has adopted all standards which became effective for the first time at 31 December 2018, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the Company.

4 Critical Accounting Estimates and Judgments

The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances. These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates. There are no significant estimates and judgements which would have a significant effect on the financial statements.

5 Revenue and Other Income

2018

$

2017

$

Sales revenue

- Bar sales 890,203 823,705

- Food service sales 18,715 19,707

- Course trading income 228,696 235,148

- Poker machine income 1,597,454 1,656,641

- Pro shop sales 8,007 9,532

- TAB commission 20,771 22,050

- Entertainment income 76,499 68,250

- Investment property rental and outgoings income 455,834 223,637

- Keno commission 50,503 49,837

3,346,682 3,108,507

Finance income

- Interest received 186 2,148

Other revenue

- Sporting club income and contributions 58,084 67,675

- Member subscriptions 10,275 16,129

- Other income 62,595 40,469

130,953 124,273

Total Revenue 3,477,822 3,234,928



16

6 Result for the Year

The result for the year includes the following specific expenses:

2018

$

2017

$

Depreciation

Buildings 75,560 74,198

Plant and equipment 122,382 122,777

Poker machines 102,525 93,548

Investment property 98,913 66,136

399,380 356,659

Impairment of receivables:

- Doubtful debts - 4,336

7 Cash and cash equivalents

Cash at bank and in hand 139,100 228,883

The above figure is reconciled to cash at the end of the financial year as shown in the statement of cashflows.

8 Trade and other receivables

CURRENT

Trade receivables 5,129 19,917

Provision for impairment - (5,897)

5,129 14,020

Other receivables 11,156 29,230

Prepayments 75,664 109,040

Total current trade and other receivables 91,949 152,290

The carrying value of trade receivables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements.



17

9 Property, plant and equipment

2018

$

2017

$

CORE PROPERTY - LAND AND BUILDINGS

Freehold land

At cost 689,333 689,333

Total Land 689,333 689,333

Buildings

At cost 2,612,193 2,605,841

Accumulated depreciation (553,325) (478,163)

Total buildings 2,058,868 2,127,678

Total land and buildings 2,748,201 2,817,011

PLANT AND EQUIPMENT

Plant and equipment

At cost 1,429,074 1,816,873

Accumulated depreciation (1,012,078) (1,329,742)

Total plant and equipment 416,996 487,131

Poker machines

At cost 1,357,211 1,384,674

Accumulated depreciation (1,050,907) (997,499)

Total Poker machines 306,304 387,175

Total plant and equipment 723,300 874,306

Total property, plant and equipment 3,471,501 3,691,317

(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

$

Buildings

$

Plant and Equipment

$

Poker machines

$

Total

$

Year ended 31 December 2018 Balance at the beginning of year 689,333 2,127,678 487,131 387,175 3,691,317

Additions - 6,750 59,730 24,810 91,290

Disposals - - (7,483) (3,156) (10,639)

Depreciation expense - (75,560) (122,382) (102,525) (300,467)

Balance at the end of the year 689,333 2,058,868 416,996 306,304 3,471,501



9 Property, plant and equipment

18

(b) Land & Buildings

Land and buildings at the Country Club complex were valued for the Club’s bank as at 25 July 2011 by an independent valuer. This value far exceeded the book value that is carried in the financial statements.

Land and buildings at the Club Bega complex were valued for the Club’s bank as at 30 August 2016 by an independent valuer. This value far exceeded the book value that is carried in the financial statements.

Land at Club Bega (Gipps Street) has been booked at the valuation from the Department of Lands on 29 December 2009. This valuation has been deemed as the fair value of the land which was transferred to the Company upon the amalgamation with Bega Bowling & Sporting Club Limited on 12 August 2010.

(c) Noncurrent assets pledged as security

Refer to Note 11 for information on non-current assets pledged as security by the Company.

10 Investment Property

(a) Investment Properties

2018

$

2017

$

Stratum - Sapphire Coast Market Place 2,353,335 2,059,062

153-159 Auckland Street 2,147,946 2,385,051

Total 4,501,281 4,444,113

Balance at beginning of the period 4,444,113 2,119,349

Acquisitions 156,081 2,390,900

Depreciation (98,913) (66,136)

Balance at end of the period 4,501,281 4,444,113

Non-current assets pledged as security Refer to Note 12 for information on non-current assets pledged as security by the Company.

Valuation of Investment Properties The Stratum property was valued for the Club’s bank as at 4 June 2018 by an independent valuer. This value far exceeded the book value that is carried in the financial statements. The property at 153-159 Auckland Street was purchased in August 2017. Both properties are accounted for at cost less accumulated depreciation.



19

11 Trade and Other Payables

2018

$

2017

$

Current

Trade payables 183,674 234,699

Income received in advance 6,197 3,334

Sundry payables and accrued expenses 44,815 56,147

Members subscriptions in advance 21,174 19,340

255,860 313,520

Trade and other payables are unsecured, non-interest bearing and are normally settled within 30 days. The carrying value of trade and other payables is considered a reasonable approximation of fair value due to the short-term nature of the balances.

12 Borrowings

CURRENT

Unsecured liabilities:

Other loans - Mortality & Relief Fund 36,000 36,000

Secured liabilities:

Bank loan 200,422 509,000

Total current borrowings 236,422 545,000

NON-CURRENT

Unsecured liabilities:

Other loans - Mortality & Relief Fund 604,000 590,000

Secured liabilities:

Bank loan 1,028,889 1,228,000

Total non-current borrowings 1,632,889 1,818,000

Total borrowings 1,869,311 2,363,000



12 Borrowings

20

Security for Borrowings

Bank Loan - First Registered Mortgage over the Club property located at Gipps Street, Bega - First Registered Mortgage over the Club property located at 153-159 Auckland Street, Bega.. - First Registered Mortgage over the Club property located at 77 Upper Street, Bega. - Registered equitable mortgage over all the assets and undertakings.

Mortality & Relief Fund Loan This is an unsecured loan and is interest bearing (3% p.a.).

Financing Facilities The Company has a bank loan facility which with normal repayments per the loan facility would be $2,424,311 as at 31 December 2018 with $1,195,000 remaining as at 31 December 2018. Additionally, the Company has access to a business card facility of $10,000. The bank loan facility is in place to July 2023 and is reviewed on an annual basis.

13 Provisions

2018

$

2017

$

CURRENT

Provision for poker machine jackpots and bonus points 34,584 55,588

14 Employee Benefits

Current liabilities

Long service leave 62,684 53,261

Provision for employee benefits 79,175 68,524

141,859 121,785

15 Leasing Commitments

(a) Operating leases

Minimum lease payments under operating leases:

- not later than one year 4,140 4,140

- between one year and five years 2,415 6,554

6,555 10,694

Operating leases are in place for club equipment. It may be cancelled at any time however exit clauses apply.



21

16 Lessor Commitments

Operating lease commitments receivable - Company as lessor

Bega RSL Club Limited leases out its investment properties (see note 10) under commercial leases. These non-cancellable leases have initial terms of 5 years. All leases include an option for Bega RSL Club Limited to increase rent to current market rental on an annual basis.

The future minimum lease payments under non-cancellable leases are:

2018

$

2017

$

- no later than 1 year 360,324 250,530

- between 1 year and 5 years 883,930 643,650

Total minimum lease payments 1,244,254 894,180

17 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstandings and obligations of the Company. At 31 December 2018 the number of members was 3,085 (2017: 2,626).

18 Key Management Personnel Disclosures

The directors did not receive any remuneration from the company during the year other than reimbursement of out-of-pocket expenses that have been fully substantiated.

Other key management personnel transactions The Company is run by the Board of Directors. All major business decisions are made by the Board. The day to day business of the Company is run by the employees of the Company. As all major business decisions are made by the Board, no key management personnel disclosures are deemed appropriate.

19 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 31 December 2018 (31 December 2017: None).



22

20 Related Parties

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

Key management personnel - refer to Note 18.

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

(b) Transactions with related parties

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Director Michael Haigh received $375 during the financial year for services provided to the company under normal commercial terms and conditions. Director David Jones’s son’s partner was employed by the company during the financial year under normal commercial terms and conditions.

21 Events Occurring After the Reporting Date

The financial report was authorised for issue on 28 February 2019 by the Board of Directors.

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

22 Associated Entities

2018

$

2017

$

- Ladies' Bowls 4,679 6,000

- Ladies' Golf 17,270 14,885

- Men's Bowls 27,793 21,288

- Men's Golf 13,489 9,449

Total 63,231 51,622

There are currently four associated sports bodies as recognised under the constitution of the Company, managed and controlled by separate committees set up under the conditions inherent in those articles. These committee’s income and expenditure has not been consolidated in the books of account of the Company nor have they been part of the audit process of Bega RSL Club Limited. Men’s Golf, Ladies Golf and Men’s Bowls are audited by Kothes Chartered Accountants as a separate entity to Bega RSL Club Limited. These bodies hold funds in various bank accounts and investments as at December 31, 2018.


Directors' Declaration

23

The directors of the Company declare that: 1. The financial statements and notes, as set out on pages 5 to 22, are in accordance with the Corporations Act 2001 and:

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

b. give a true and fair view of the financial position as at 31 December 2018 and of the performance for the year ended on that 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 and

when they become due and payable.

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

Howard BLACKER

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

David JONES BEGA Dated 28 February 2019

Independent Audit Report to the members of Bega RSL Club Limited

24

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Bega RSL Club Limited (the Company), which comprises the statement of financial position as at 31 December 2018, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company's financial position as at 31 December 2018 and of its financial performance for the year ended; and

(ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other Information

The directors are responsible for the other information. The other information obtained at the date of this auditor's report is included in the annual report, (but does not include the financial report and our auditor’s report thereon). Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed on the other information obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Independent Audit Report to the members of Bega RSL Club Limited (Continued)

25

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Entity's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Entity to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. KOTHES Chartered Accountants


26

APPENDIX B - Supplementary Information For the Year Ended 31 December 2018

The additional financial data presented on the following pages is in accordance with the books and records of the Company which have been subjected to the auditing procedures applied in our statutory audit of the Company for the year ended 31 December 2018. It will be appreciated that our statutory audit did not cover all details of the additional financial data. Accordingly, we do not express an opinion on such financial data and we give no warranty of accuracy or reliability in respect of the data provided. Neither the firm nor any member or employee of the firm undertakes responsibility in any way whatsoever to any person (other than Bega RSL Club Limited) in respect of such data, including any errors of omissions therein however caused.

KOTHES Chartered Accountants


LIMITED (ABN 97 001 011 383)

2014 2015 2016 2017 2018

Bar Sales 916,063 869,651 859,542 823,705 890,203

Poker Machine Receipts 1,671,186 1,511,155 1,543,921 1,627,072 1,572,692

Employee Expenses 892,946 899,317 989,696 1,155,658 1,108,053

Depreciation 384,758 390,122 359,859 356,658 399,830

Operating Surplus/(Deficit) 296,704 130,357 244,577 112,335 240,523

EBITDA % 20.7% 17.8% 16.0% 16.0% 20.7%

Net Assets 5,209,682 5,340,039 5,584,616 5,696,951 5,937,474

2018 2017

OPERATING RESULT SUMMARY

OPERATING PROFIT - CLUB BEGA 210,551 213,982OPERATING PROFIT - TARRAGANDA (108,405) (133,351)OPERATING PROFIT - STRATUM 41,816 11,876OPERATING PROFIT - AUCKLAND STREET 96,562 19,829

------------------- -------------------OVERALL OPERATING RESULT 240,523 112,335

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

5 YEAR SUMMARY - KEY FIGURES

APPENDIX B ‐ PAGE 1

LIMITED (ABN 97 001 011 383)

2018 2017

TARRAGANDA - BAR

Bar Sales 291,398 286,865

LESS: Cost of Goods Sold

Opening Stock 12,342 12,942

Bar Purchases 122,582 118,569

Tooheys Rebate (2,378) (1,361)

------------------- -------------------132,546 130,151

Closing Stock 11,187 12,659

------------------- -------------------Cost of Goods Sold 121,359 117,492

------------------- -------------------GROSS PROFIT 170,039 169,373

GP % to Sales 58% 59%

LESS: Direct Costs

Wages 133,242 135,604

Gas 1,709 1,649

Freight and Sundries 4,001 3,694

Repairs & Maintenance 279 -

Bar Unders/Overs (639) (336)

------------------- -------------------Total Direct Costs 138,592 140,612

------------------- -------------------GROSS PROFIT FROM TRADING 31,447 28,762

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

TARRAGANDA - POKER MACHINES

Net Poker Machine Receipts 106,993 126,227

LESS: Direct Costs

Wages 24,400 25,062

Repairs and Maintenance 8,921 12,339

Depreciation 14,222 14,429

Data Monitoring Charges 3,938 5,830

Quickchange - 600

Gaming Tax Rebate (10,234) (12,389)

Pokies Unders/Overs (417) (217)



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

DIVISIONAL TRADING ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2018


LIMITED (ABN 97 001 011 383)

2018 2017

TARRAGANDA - KENO

Keno Commission 19,300 19,020

LESS: Direct Costs

Wages 3,253 11,971

Maintenance & Stationery 1,602 1,719

Keno Unders/Overs (45) 117-



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

TARRAGANDA - BAR CATERING

Sales 18,715 19,707


Purchases 17,193 21,422

------------------- -------------------GROSS PROFIT FROM TRADING 1,522 (1,716)

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

TARRAGANDA - PRO-SHOP

Sales 8,619 9,332


Opening Stock 519 5,247

Purchases 6,777 6,791

------------------- -------------------7,296 12,038

Closing Stock 2,255 519


Pro Shop Unders/Overs 612 200-

------------------- -------------------GROSS PROFIT FROM TRADING 2,967 (1,988)

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



LIMITED (ABN 97 001 011 383)

2018 2017

TARRAGANDA - COURSE

Sponsorship 19,332 23,159

Green Fees 50,213 48,904

Subscriptions 64,757 59,938

Competition Fees 45,418 46,214

Golf Cart Hire 42,273 51,516

Fuel Tax Rebate 6,703 5,417

------------------- -------------------Total Course Income 228,696 235,148

LESS: Direct Costs

Repairs & Maintenance 83,659 119,822

Affilliation Fees & Subs 7,402 9,095

Electricity 20,647 13,166

Fuel & Oil 17,512 14,366

Wages 174,659 178,195

Water Expenses 4,303 5,168


------------------- -------------------PROFIT/(LOSS) FROM TRADING (79,486) (104,664)

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

TRADING CONTRIBUTION - TARRAGANDA

BAR 31,447 28,762

POKER MACHINES 66,164 80,573

KENO 14,489 5,447

CATERING 1,522 (1,716)

PRO-SHOP 2,967 (1,988)

COURSE (79,486) (104,664)

------------------- -------------------GROSS TRADING CONTRIBUTION 37,103 6,414

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



LIMITED (ABN 97 001 011 383)

2018 2017

EXPENDITURE - TARRAGANDA

Advertising 15,712 16,689

Auditor's Remuneration 3,960 3,560

Bank Charges 2,690 1,515

Cleaning Materials 6,253 6,441

Computer Costs 933 1,822


Depreciation - Property Improvements 8,889 7,611


Entertainment Bands/Raffles 24,375 22,220

Entertainment Bingo 388 1,951

Gas & Heating 3,028 2,901

Garbage Collection 3,788 5,409

Insurance Fees 24,452 23,754

Legal Fees 232 232

Licencing Fees 1,024 486

Printing & Stationery 2,875 3,488

Promotions Members 12,797 6,826

Rates & Taxes 12,889 6,674

Refreshments Golf/Bistro - 2,144

Rent Equipment 2,246 2,686

Rent Lands Department - 4,524


Security 827 709

Staff Salaries & Wages 13,031 13,341

Staff Training & Welfare 301 2,987

Staff Refreshments & Amenities 620 1,668

Staff Uniforms 564 1,628

Staff Payroll Tax 2,847 2,609

Superannuation Contrib. - CSGC - 10

Superannuation Employee Contribution 912 912

Telephone 3,823 3,349

Workers Compensation Insurance 595 (3,984)

------------------- -------------------TOTAL PAYMENTS - TARRAGANDA 231,741 228,494

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

OTHER INCOME - TARRAGANDA

Commission ATM/Vending 1,739 2,125

Entertainment Bands/Raffles 23,715 26,295

Entertainment Bingo 1,053 2,675

Insurance Recovery 13,211 -

Room Hire 1,131 4,282

Sporting Clubs Contribution 15,000 20,000

Squash Fees 22,851 24,780

Sundry Revenue 6,991 8,571

Profit on Sale of Assets 543 -

------------------- -------------------TOTAL RECEIPTS - TARRAGANDA 86,233 88,729

------------------- -------------------TRADING CONTRIBUTION - TARRAGANDA (108,405) (133,351)

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



LIMITED (ABN 97 001 011 383)

2018 2017

CLUB BEGA - BAR

Bar Sales 598,806 536,840


Opening Stock 16,063 19,650

Purchases 242,907 212,100

Tooheys Rebate (11,679) (9,977)

------------------- -------------------247,291 221,773

Closing Stock 16,815 16,063


------------------- -------------------Gross Profit 368,330 331,130

------------------- -------------------GP % to Sales 62% 62%

LESS: Direct Costs

Wages 266,496 272,520

Gas 1,170 990

Freight & Sundries 7,264 6,578

Repairs & Maintenance 775 -

Bar Unders/Overs 864 787



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

CLUB BEGA - POKER MACHINES

Net Poker Machine Receipts 1,465,699 1,500,845

LESS: Direct Costs

Wages 77,131 76,802

Bonus Prizes 18,414 46,179

Rental 29,138 35,733

P/M Tax 167,455 174,391



Data Monitoring Charges 20,922 22,821

P/M Expired Gaming Ticket 2,653 -

Quickchange 552 1,140

Gaming Tax Rebate (17,180) (17,180)

Gaming Promotions 183 2,101

Pokies Unders/Overs 222 1,621


------------------- -------------------GROSS PROFIT FROM TRADING 1,033,023 1,033,241

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



LIMITED (ABN 97 001 011 383)

2018 2017

CLUB BEGA KENO

Keno Commission 31,203 30,816

LESS: Direct Costs

Keno Wages 18,864 18,136

Maintenance & Stationery 5,125 4,276

Keno Unders/Overs 19 22



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

CLUB BEGA TAB

Tab Commission 20,771 22,050

LESS: Direct Costs

Tab Wages 9,432 9,068

Promotions 1,128 1,828

Stationary & Papers 5,314 5,649

Tab Unders/Overs 63 532



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

TRADING CONTRIBUTION - CLUB BEGA

BAR 91,761 50,255

POKER MACHINES 1,033,023 1,033,241

KENO 7,195 8,382

TAB 4,835 4,972

------------------- -------------------GROSS TRADING CONTRIBUTION 1,136,813 1,096,851

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



LIMITED (ABN 97 001 011 383)

2018 2017

EXPENDITURE - CLUB BEGA

Accountancy Fees 22,170 20,140

Affiliation Fees & Subscriptions 6,914 7,024

Advertising 33,294 29,346

Austar/Sky Channel 17,019 14,577

Bank Charges 3,671 3,747

Bad Debts Expense - 4,336

Cleaning 12,301 11,832

Computer Costs 21,505 16,193


Depreciation - Prop Improvements 66,671 66,587

Directors Refreshments 1,988 2,202

Donations Club Grants 34,144 20,360


Entertainment Expenses 76,879 63,494

Garbage Collection 3,864 5,254

Insurance 37,518 37,879

Interest Paid 34 1

Legal Fees 1,528 659

Licencing Fees 6,144 2,736

Motor Vehicle Expenses 14,529 14,353

Security 1,716 1,789

Printing & Stationery 9,303 14,976

Promotions Members 47,774 41,732

Rates & Taxes 32,371 36,700

Refreshment Members/Anzac Day - 579

Rent Equipment 10,715 10,407

Repars & Maintenance 55,957 43,525

Staff Salaries & Wages 233,074 240,923

Staff Salary & Wages - accrued leave 1,050 802

Staff Training & Welfare 23,852 48,833

Staff Refreshments & Amenities 10,482 13,646

Staff Uniforms 1,512 601

Staff Payroll Tax 11,288 11,402

Superannuation - CSGC 20,401 18,327

Telephone 8,979 9,505

Under (Over) Banking (100) (407)

Wokers Compensation Insurance 758 464

Wages - Bowling Greens 79,290 74,131

Valuation Fees - 1,857

------------------- -------------------TOTAL PAYMENTS - CLUB BEGA 1,051,285 1,008,333

------------------- -------------------OTHER INCOME - CLUB BEGA

Commission ATM/Vending 13,466 13,004

Entertainment 51,732 39,279

Interest Received 620 2,148

Insurance Recovery 3,502 -

Rent Caterers 10,400 5,200

Room Hire 12,515 12,121

Subscriptions/Memberships 10,275 16,129

Sundry Revenue 6,511 1,422

Sporting Contribution - Men's Bowls 13,361 16,339

Sporting Contribution - Women's Bowls - 300

Profit on Sale of Assets 2,039 19,520

Loss on Sale of Assets 602 -

------------------- -------------------TOTAL OTHER RECEIPTS - CLUB BEGA 125,023 125,464

------------------- -------------------TRADING CONTRIBUTION - CLUB BEGA 210,551 213,982

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



LIMITED (ABN 97 001 011 383)

2018 2017

STRATUM- SAPPHIRE MARKETPLACE

INCOME:

Rent 186,482 131,525

Outgoings Income Stratum 6,993 2,667

------------------- -------------------Total Income Stratum 193,475 134,192

LESS: Direct Costs

Bank Fees 1,350 1,650

Cleaning 1,224 1,287



General Expenses 1,200 -

Insurance 21,296 21,296

Interest 20,956 19,618

Land Tax 2,606 -

Legal Fees 7,893 -

Rates & Taxes 12,425 11,792



------------------- -------------------GROSS PROFIT/LOSS FROM TRADING 41,816 11,876

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

AUCKLAND STREET

INCOME:

Rent Auckland Street 185,547 76,113

Outgoings Income Auckland 76,812 13,331

------------------- -------------------Total Income Auckland Street 262,359 89,445

LESS: Direct Costs

Bank Fees 980 4,662


Land Tax 6,700 -

Legal Fees 23 12,564

Insurance 13,982 2,976

Interest 56,713 28,461


Rates & Taxes 13,084 10,740

------------------- -------------------TOTAL DIRECT COSTS 165,797 69,616

------------------- -------------------AUCKLAND STREET PROFIT (LOSS) 96,562 19,829

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



L I M I T E D

MORTALITY & RELIEF FUND ABN 86 681 129 988

APPENDIX C - BEGA RSL CLUB LIMITED MORTALITY & RELIEF FUND The statements below have been extracted from the full financial statements of the Bega RSL Club Limited Mortality & Relief Fund. The full financial statements are available to members of the fund upon request.

INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2018 2018 2017 Income: Interest 19,557.44 19,412.29 Subscriptions 7,020.00 7,460.00 ------------------- ------------------- 26,577.44 26,872.29 ------------------- ------------------- Expenses: Accountancy fees 2,464.00 1,204.50 Audit fee 2,361.50 2,117.50 Bank charges 192.34 264.00 Mortality payments 25,000.00 28,000.00 ------------------- ------------------- 30,017.84 31,586.00 ------------------- ------------------- Operating Profit for the Year (3,440.40) (4,713.71) ------------------- ------------------- Income tax relating to operating Profit -- -- ------------------- ------------------- Profit after income tax for the year (3,440.40) (4,713.71) =========== ===========

BALANCE SHEET AS AT 31 DECEMBER 2018

Current Assets General Bank Account 53,643.79 70,292.19 Online Bank Account 1,008.03 1,008.03 Loan to Bega RSL Club Limited 36,000.00 36,000.00 Income tax refundable -- 872.00 ------------------- ------------------- TOTAL CURRENT ASSETS 90,651.82 108,172.22 ------------------- ------------------- Non-Current Assets Loan to Bega RSL Club Limited 604,000.00 590,000.00 ------------------- ------------------- TOTAL NON-CURRENT ASSETS 604,000.00 590,000.00 ------------------- ------------------ TOTAL ASSETS 694,651.82 698,172.22 ------------------- ------------------- Current Liabilities Accrued charges 3,000.00 2,800.00 Trade creditors -- 280.00 ------------------- ------------------- TOTAL LIABILITIES 3,000.00 3,080.00 ------------------- ------------------- NET ASSETS 691,651.82 695,092.22 =========== =========== EQUITY Opening Accumulated Funds 695,092.22 699,805.93 Profit for Year (3,440.40) (4,713.71) ------------------- ------------------- Accumulated Funds as at 31 December 2018 691,651.82 695,092.22 =========== ===========

L I M I T E D (ABN 97 001 011 383)

APPENDIX D

DONATIONS AND SPONSORSHIP

Organisations and persons supported throughout the year included:

Bemboka Show Society Bega High School Bega High School Bega Squash Club

Sapphire Coast Runners Bega RSL Sub-Branch

Bemboka Troop 7th Light Horse Bega Country Club Men's Committee

Sapphire Coast Turf Club Sapphire Coast Anglican College

Candelo AH Ass Bega Show Jumping Tathra Sea Eagles

Bega Devils Bega Men's Bowling Club

Bega Squash Club Bega RSL Sub Branch BV Motorcycle Expo

Tathra Fire Appeal Mayoral Fund Bega Ladies Golf Committee Connections Plus Merimbula

Bega Valley Parkinson’s Support Group Bega Valley SPAN

Bega Rotary Bega Valley Meals on Wheels

Documents

(A Company Limited by Guarantee) ANNUAL …...L I M I T E D (ABN 97 001 011 383) (A Company Limited by Guarantee) ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2018 CONTENTS President’s