Annual Report 2004 - 2005

Canberra Southern Cross ClubAnnual Report 2004–2005

www.cscc.com.auLimited

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Terms & conditions: This is a member’s only promotion. By participating you are registering to receive club information via email & sms. One entry per membership ie family membership 1 entry. Any entry with incorrect or illegible details is disqualifi ed from draw. In the event of a dispute the decision of management is fi nal. Drawn 7.30pm Wednesday 19th October 2005 at CSCC Woden reception. Winner must be present at the draw to win the bonus prize

WIN HP LAPTOPSouthern Cross Club Members Info Service

ENTRY FORM

1st Prize: HP laptop. Bonus prize Olympus C-370 Digital Camera if your present at the draw.

Around an acre of trees is chopped down every year in order for CSCC members to receive their member information in the letterbox – not a fi gure to make the environmentally aware among us comfortable. To avoid this, CSCC members can now sign up to receive CSCC communications electronically. Not only is this a positive environmental measure, it also provides signifi cant fi nancial savings for CSCC members by saving a club expense. Printing and postage of reports is a considerable expense for the club and receiving communication updates via email and sms will contribute to lower report costs. How it works: By registering your email address and mobile phone number, you elect to receive all your CSCC communications electronically, including annual and fi nancial reports.

Completed entry forms must be placed in an entry barrel located at reception at all 4 CSCC venues by COB Tuesday 18th October 2005.

Name

Member no.

Mobile no.

Email

2. Contents page

2. Entry form

3. Newsletter

11. Event calender

12. Message from Bishop

12. Message from Chief Minister

13. Presidents report

14. Community support committee message

15. Planning & development report

16. Member services committee

18. CEO’s report

19. Clubs ACT

21. Health & Fitness Centre

22. Finance committee report

24. Director’s report

30. Finance report

38. Election & Nominees

39. AGM details

40. Board photosCO

NTEN

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WHAT’S ON AT THE CLUBS?Happy HourHappy Hour’s are great value at all 4 clubs with multiple happy hours running every week why not enjoy value Schooners & Middies. Check Happy Hour session times on the weekly event planner of your favourite venue.

Meat Raffl esPrizes include meat trays, cases of beer, wine and vouchers. Tickets start at just $2. Check out the great raffl e voucher on the back cover to get $10 worth of tickets for $5. Make sure you don’t miss the weekly mega raffl es at all 4 clubs. Session times on the weekly event planners.

TriviaTest your knowledge of trivia and win great prizes in the free raffl es. Trivia sessions are free and run every Saturday from 4.30pm at the Yamba Sports Club and every Thursday from 6pm at Yacht Club.

MAJOR PROMOTIONSBIG MONEY II8pm Tuesday & Wednesday at Woden and 8pm Thursday & 9pm Friday at Tuggeranong. With 10 draws, each winner present wins $60 as well as entry into the BIG MONEY II draw.

BIG MONEY II DrawEach winner that is present selects a number from 1-1000 from the barrel and then selects another number from 1-1000 using the random number generator. If the numbers are the same that person wins $10,000. If the numbers are within 5 places wins $1,000 and 100 places wins $100. To enter play the gaming machines with your membership card in the consol from 10am-9pm daily. Barrels open 2 hours before the draw.

$1000 WheelWin $1000 cash at Yamba, Woden & Tuggeranong. Play the gaming machines or swipe your membership card at the specifi ed times to enter. Venue sessions times on weekly events planner.

Are you in control of your gambling?

Call Clubcare on 6247 0655 during offi ce hours or Lifeline 24 hours on 131114

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CSCC — ANNUAL REPORT 2004–05

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Yamba Sports ClubIf the Terrace buffet is not the best value for money in the ACT then we don’t know what is.

Three Course Carvery BuffetSoup, Bread, Roast meats & roasted vegies, Pasta, Salads & Desserts

Monday – Thursday Lunch $14 Dinner $16

Friday – Sunday Lunch $15 Dinner $17

(Closed Saturday Lunch)

Make your booking on 6283 7300

Sunday Social BowlsShare in over $1000 prize money. $45 team entry ($15pp) Price includes hot lunch.

2 games of 15 ends of three bowl triples played each Sunday. First game commences at 11am. Entries at reception, for enquires call 6283 7300• Events details may change due to weather and attendance.

WEEKLY EVENTS YAMBAMonday Friday 12.00noon Happy Hour 12.00noon Happy Hour5.00pm Happy Hour 3.00pm $1000 Wheel Entry 5.00pm $1000 Wheel DrawTuesday 5.00pm Happy Hour12.00noon Happy Hour 6.00pm Raffl e5.00pm Happy Hour Saturday Wednesday 12.00noon Happy Hour12.00noon Happy Hour 4.30pm Trivia5.00pm Happy Hour 5.00pm Happy Hour Thursday Sunday 12.00noon Happy Hour 11.00am Sunday Bowls4.00am $1000 Wheel Entry 12.00noon Happy Hour5.00pm Happy Hour 3.00pm $1000 Wheel Entry6.00am $1000 Wheel Draw 5.00pm $1000 Wheel Draw 5.00pm Happy HourEvent times & details subject to change

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Yacht ClubVoted best restaurant in a club/pub/tavern 2005 according to the ACT Southern NSW Restaurant & Catering Association, and boasting one of the best views in Canberra. The Lotus Bay Restaurant at the Southern Cross Yacht Club is open for lunch and dinner 7 days a week and breakfast on Sunday’s.

Samples from new Yacht Club menuWhole Goulburn River Rainbow Trout En Papilotte – $18Cooked in a parcel with Onions, Carrots, Leek, Celery & White Wine with side of Baby Caper Salsa, Preserved Lemons & Chilli Vinegar

Lamb Kofta – $17Served with Jasmine Rice, Poppadams and Yogurt Raita

Stuffed Field Mushroom – $14Filled with Goats Fetta, Roast Capsicum & Parsley served on Mash Potato & Tomato Onion Chutney with Pesto Mayonnaise

Call 6273 1784 for bookings

mv Southern CrossThe best way to take advantage of one of Canberra’s most famous attractions Lake Burley Griffi n is to do so aboard the mv Southern Cross. We offer sight seeing cruises daily and run an exclusive cruise with a guided tour through the Garden’s at Government House and if you’re celebrating or want a unique dining experience then don’t miss the lunch and dinner cruises.

Fish & ChipsNot everyone wants to enjoy the view of Lake Burley Griffi n with a 3-course meal and for those after something simpler, fi sh and chips are available from the bar in the main area of the club for lunch and dinner 7 days a week or from downstairs Fridays 5pm-8pm and Saturday & Sundays from 12pm-8pm from October 2005 to May 2006.

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WEEKLY EVENTS YACHT CLUB & CRUISESMonday Friday 3.00pm 1 hour Sightseeing Cruise 3.00pm 1 hour Sightseeing Cruise5.00pm Happy Hour 5.00pm Happy Hour Tuesday Saturday 3.00pm 1 hour Sightseeing Cruise 3.00pm 1 hour Sightseeing Cruise5.00pm Happy Hour 5.00pm Happy Hour Wednesday Sunday 3.00pm 1 hour Sightseeing Cruise 12.00noon Lunch Cruise5.00pm Happy Hour 3.00pm 1 hour Sightseeing Cruise 3.00pm FREE Live EntertainmentThursday 6.00pm Raffl e10.00am Government House 5.00pm Happy Hour Gardens Cruise 3.00pm 1 hour Sightseeing Cruise 5.00pm Happy Hour 6.00pm Trivia 7.00pm Dinner CruiseEvent times & details subject to change

TuggeranongTuggeranong offers a wide range of outlets catering for all different styles of food and service.

Valley Carvery With premium roast meats and selected seasonal vegetables the Valley Carvery is great value for money. Open for lunch and dinner 7 days and open’s early from 5.30pm on Friday and Saturday nights.

Valley GrilleAffordable value for money bistro style dining. Open for lunch and dinner seven days a week. The Valley Grille provides meals to satisfy the whole family, from light snacks to hearty steaks.

CaféOffering value for money light meals, gourmet snacks, cakes & pastries, coffee and dessert. From 10am until late at night.

JacksonsOffers modern Australian cuisine, a la carte dining and a view of the Valley! Open 5.30pm - 9.00pm Tuesday to Saturday

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DOUBLE YOUR MONEY POINT’S PROMOTIONSGaming patrons can now double their point’s value to purchase meals at CSCC Tuggeranong.

1. Withdraw 500 points from the reward centre2. present voucher to change desk 3. receive a $10 catering voucher valid at any outlet at CSCC Tuggeranong (ex Fridays and Saturdays)

WEEKLY EVENTS TUGGERANONGMonday Friday 12.00noon Happy Hour 12.00noon Happy Hour5.00pm Happy Hour 5.00pm Happy Hour 6.00pm $1000 Wheel EntryTuesday 7.00pm Raffl e12.00noon Happy Hour 7.00pm Big MoneyII Barrel Opens5.00pm Happy Hour 8.00pm $1000 Wheel Draw 6.00pm $1000 Wheel Entry 9.00pm Big Money II Draw 8.00pm $1000 Wheel Draw 10.00pm FREE Live Entertainment Wednesday Saturday12.00noon Happy Hour 12.00noon Happy Hour 5.00pm Happy Hour 5.00pm Happy Hour 6.00pm $1000 Wheel Entry 8.30pm FREE Live Entertainment8.00pm $1000 Wheel Draw SundayThursday 12.00noon Happy Hour12.00noon Happy Hour 3.00pm Raffl e5.00pm Happy Hour 3.00pm $1000 Wheel Entry6.00pm Raffl e 5.00pm Happy Hour 6.00pm Big Money II Barrel Opens 5.00pm $1000 Wheel Draw 8.00pm Big Money II Draw Event times & details subject to change

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WodenGolden GrilleThe ever popular Golden Grille continues to provide premium quality food from a wide menu selection. New items on our menu include:

• The Surf & Turf quality grain fed rump steak topped with char grilled marinated butterfl y king prawns, served with chips

• Chargrilled King Prawns marinated butterfl y king prawns, served with char grilled lemon & chips.

Café Cosmo

Café Cosmo is still great value a la carte dining. For only $18.00 per person, the Café Cosmo Lunch Special includes a fantastic 2 course meal and tea or coffee to fi nish.

is BACK!

Due to popular demands, Alberto’s is being converted to Henry’s and the menu modifi ed to create a more family friendly Henry’s style. The amusement machines are also being relocated to ensure children can’t wander away. A new kids party room will also be available.

WEEKLY EVENTS WODENMonday Friday 5.00pm Happy Hour 5.00pm Happy Hour6.00pm Bingo 6.00pm Raffl e Tuesday Saturday 5.00pm Happy Hour 4.00pm $1000 Wheel Entry 6.00pm $1000 Wheel Draw Sunday 6.00pm Big Money II Barrel OPEN 3.00pm Raffl e8.00pm Big Money II Draw 4.00pm $1000 Wheel Entry 6.00pm $1000 Wheel DrawWednesday 3.00pm $1000 Wheel 5.00pm Happy Hour 6.00pm Big Money II Barrel OPEN8.00pm Big Money II DrawThursday 10.00am Bingo 1.00pm $1000 Wheel Entry 3.00pm $1000 Wheel Draw 5.00pm Happy Hour Event times & details subject to change

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FUNCTIONSCanberra Southern Cross Club offers a wide range of functions facilities and services across its 4 venues and can therefore meet any functions requirments, with so many choices for functions planners and organisers. To download a functions package visit www.cscc.com.au

For a quote on your functions or to arrange an inspection, please contact our functions managers directly.

Tuggeranong email: [email protected], call: 02 6293 7200

Yamba Sports Club email: [email protected], call: 02 6283 7300

Yacht Club & Cruises email: [email protected], call: 02 6273 1784

Woden email: [email protected], call: 02 6283 7200

CAREERS AND EMPLOYMENT The Canberra Southern Cross Club continues to be an employer of choice in the hospitality industry in the ACT. Our employee value proposition is based on the diverse range of career opportunities we offer in all areas of hospitality. We are committed to fostering a strong employment culture that is based on three key principles;

• A culture that values the relationship with staff and service providers

• A culture of high performance and excellence in customer service

• A culture based on strong corporate values

If you would like to enquire about our recruitment process and current vacancies in hospitality management, commercial cookery and food and beverage service please visit our website at www.cscc.com.au/careers.html or contact the HR dept on (02) 6283 7200.

EMAIL & SMS COMMUNICATION The Canberra Southern Cross Club is developing new and more effi cient ways to communicate with our 72,000+ members. To be apart of The Southern Cross Club members info service just enter the promotion using the entry form on the inside front cover of this newsletter.

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NON-SMOKINGWhat’s happening?The ACT government has legislated that effective December 1, 2006, all enclosed areas in clubs will be required to become 100% non-smoking

What is Canberra Southern Cross Club doing about alternative areas for smoking patrons?To provide for non-smokers, your club has maintained non-smoking areas in all venues for some time. Careful consideration has been given to balancing an environment for smokers and non-smokers and maximising the comfort of all patrons.

Woden: as a part of the renovations completed in 2004, there is a large balcony area off the gaming lounge and bar area to cater for smoking patrons. Other areas will be considered.

Yacht Club: the Yacht Club currently has a large balcony area that would comply with the new non-smoking regulations.

Tuggeranong and Yamba: following member surveys, CSCC is currently considering the fl oorplans and facility layout of both of these venues.

COMMUNITY SUPPORTSPONSORSHIPS, DONATIONS AND SOCIAL GROUPSTo effectively manage the growing number of organisations which the Southern Cross Club looks after, the Board has instituted a number of changes in these areas for the 2005-2006 fi nancial year.

Sponsorships: Open to sporting and social organisations seeking cash support. These are managed by the executive management of the club and are assessed based on functions activity and expenditure. Applications have closed for 2005-2006 but may still be accessed on a case by case basis.

Social groups: The CSCC supports many social groups by supplying meeting rooms, storage and refreshment supplies. Social groups are also offered discounts on major functions.

Donations: Organisations / individuals are requested to submit a letter of request in writing to the Executive Offi ce. These letters are forwarded to the CEO and the Community Support Committee for consideration. For further information visit www.cscc.com.au

Community support is a key part of the Canberra Southern Cross Club and the Club will continue to closely manage these areas to ensure that members’ funds are distributed on an equitable basis and that the club is aligning that support with community needs.

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CALENDAR OF EVENTSDate What’s On Time Cost Description Venue Tues 27/09/05 The Spongebob Squarepants Movie G 87 mins 10.30am Free Kids Movie TOC Wed 28/09/05 Son of the Mask PG 94 mins 10.30am Free Kids Movie TOC Fri 30/09/05 The Incredibles PG 115 mins 10.30am Free Kids Movie TOC Tues 04/10/05 Lemony Snickets – 10.30am Free Kids Movie TOC A Series of Unfortunate Events PG 108 mins Wed 05/10/05 Racing Stripes G 102 mins 10.30am Free Kids Movie TOC Tues 18/10/05 Ladies Day 11.45am $12M $15NM Cabaret TOC Sat 29/10/05 Bob the Builder - Can we build it? 10am $15.50 under 12mths Free Kids Show TOC Tues 01/11/05 Melbourne Cup Luncheon Woden, Tuggeranong & Yamba Fri 11/11/05 Idea of North DS 7pm $57 A’Capello TOC SO 8.30pm $27 Sat 12/11/05 Stars on Parade DS 7pm $46 Country TOC SO 8.30pm $22 Tues 15/11/05 Ladies Day 11.45am $12M $15NM Cabaret TOC Sat 26/11/05 Christmas Show DS 7pm TBA Theatre Restaurant TOC SO 8.30pm Fri 02/11/05 Christmas Show DS 7pm TBA Theatre Restaurant TOC SO 8.30pm Sat 03/12/05 Christmas Show DS 7pm TBA Theatre Restaurant TOC SO 8.30pm Thur 8/12/05 Countdown to Christmas Draw 7pm Yacht Fri 9/12/05 Christmas Show DS 7pm TBA Theatre Restaurant TOC SO 8.30pm Sat 10/12/05 Second Movement – DS 7pm $52 60’s Rock & Roll TOC Celebrate Christmas SO 8.30pm $22 Thur 15/12/05 Countdown to Christmas Draw 7pm TBA Yamba Fri 16/12/05 Christmas Show DS 7pm TBA Theatre Restaurant TOC SO 8.30pm Sat 17/12/05 Christmas Show DS 7pm TBA Theatre Restaurant TOC SO 8.30pm Sun 18/12/05 Countdown to Christmas Draw 5pm TBA Tuggeranong Thur 22/12/05 Countdown to Christmas Draw 6.30pm Woden Sun 25/12/05 Christmas Day Luncheon TBA All Venues Sat 31/12/05 New Years Eve TBA Annie & the Armadillo’s DS 7pm TBA Top of the Cross SO 8.30pm Lisa Keen 7.30pm TBA Café CosmoKEY: TOC – Top of the Cross Woden, M – Members, NM – Non Members, DS – Dinner & Show, SO – Show Only

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MESSAGE FROM BISHOPI am delighted to once again have the opportunity to extend my best wishes and personal regards to members, staff and management of this wonderful Club which I am proud to have been Patron of since its inception in 1972.

Like so many Canberrans, I have watched the Club grow and expand over the years and it is wonderful for patrons to have such a choice of fi rst class facilities at their four venues across the city. The Canberra Southern Cross Club is well and truly an institution in the Canberra community and much of that reputation is due to the loyal support of Members especially those families who visit the Club for a meal or to participate in the many recreational facilities available. During my most recent visit to the Woden Club, I was heartened

to see the number of young people relaxing in the comfortable lounge areas of the Club be it enjoying a quiet ale or tuning into television coverage of one or more of the sporting channels. From its inception, the Canberra Southern Cross Club was promoted as a family club and that objective I am sure, remains as strong today within the boardroom as it did back in 1972.

I encourage you to continue to support the club especially during this time when we can all benefi t from the signifi cant investment it has made in improving facilities that have come from refurbishment of the main club.

I pray God’s blessing, with peace of mind and heart, be with you all.

+ Bishop Aloysius Morgan

Our community is one of Canberra’s most precious assets.

For more than 30 years, the Canberra Southern Cross Club has been looking after that community. The club sets a high standard in catering for the needs of its

members and making sure that important local initiatives get the help they need.

Despite a diffi cult year, the club has

contributed more than $1 million in grants, sponsorship and in kind assistance to sporting, social, charity and community groups.

The Canberra Southern Cross Club has earned the high regard of Canberrans. I congratulate the Club on another year of serving the community.

Jon Stanhope MLAChief Minister

+ Bishop Aloysius Morgan

MESSAGE FROM CHIEF MINISTER

Jon Stanhope MLAChief Minister

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Your Club has experienced a most disappointing year with gaming machine revenue down at all venues.

Following the opening of the new carpark and Gaming Lounge at Woden, the Club was experiencing a

modest increase in gaming revenue when, in November 2004, the ACT Government decided to ban the use of $100 and $50 notes in gaming machine note acceptors. Over the following nine months revenue went into a signifi cant decline and our estimated lost revenue for the period November 2004 to June 2005 was $1.0m.

The ACT Government argues that such action was necessary to reduce problem gambling, however, there is no conclusive evidence to suggest that placing restrictions on note acceptors has done anything to promote harm minimisation.

The Southern Cross Club will support any effective measure to help minimize problem gambling and suggests that if the restrictions on note acceptors were proven effective, all forms of gambling would be restricted to maximum single wagers of $20.

The sale and lease back of the Yamba Club was effected in October 2004. The Club has an option to renew the lease in 2007 for a further three years, however unless there is a signifi cant improvement in revenue at theYamba Club, I believe it is inevitable that the Club will not be taking up that option.

In August 2004 Bob Lloyd, Adrian O’Loughlin, Simon Plummer and John Lewis were re elected unopposed to the Board giving us confi dence that our governance and strategic directions are generally acceptable to members. I would like to thank all my fellow Directors for their contributions and advice over the past twelve months.

At the Annual ClubsACT 2005 Awards for Excellence the Southern Cross Club was awarded:

• Member Services Award (Large Club Division).

• Club Development Award (Large Club Division)

• Industry Contribution (Large Club Division) - Commendation.

• Club Dining – Restaurant (Jackson’s Bar and Grill) – Commendation.

Winning the prestigious Members Services Award for the fourth year in a row is indicative of our commitment to providing the best possible services to our members.

It is with sincere regret that I record the passing of Paul Rice and Fred Quinane both past Directors and past Presidents of the Club. As foundation Directors, Paul and Fred did much to foster the growth and culture of the Southern Cross Club in its formative years. Our sincere sympathy is extended to the Rice and Quinane families.

The Club is fortunate to have retained the services of Greg Mitchell as its Chief Executive Offi cer. Greg has settled in well since his appointment in March 2004 and is certainly managing well in these

PRESIDENT’S REPORT

Paul RollingsClub President

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diffi cult times. On behalf of the Board I would like to thank Greg, Rod Frazer, Company Secretary, and indeed all of our staff for their ongoing dedication and professionalism which allows the Club to maintain its good reputation within the Club industry.

In conclusion could I ask you, the

members, to continue to support your club, as without your support, we will fi nd it diffi cult to continue to provide the high quality service you have come to expect.

Paul RollingsClub President

Legislation requires that the club provide a percentage of gaming income for community purposes and despite a tough trading year, the Club’s contribution has signifi cantly exceeded our statutory requirement. The Club covers

this obligation by cash grants and ‘in kind’ assistance. The board appointed the Community Support Committee to examine the many letters received from community organisations, groups and individuals for fi nancial and other support. All requests have merit and regrettably, not all requests can be granted, as the committee is required to manage within an allocated budget.

This year the total community assistance was $930,000, a small decrease from

previous years, which can be attributed to the decline in income caused by the reduced gaming machine revenue.

The community grants program this year provided assistance to over 100 organisations that assist people with disabilities, support parents and children, and those that provide services to families and the local community.

In partnership with ClubsACT, the club also sponsors The Big Issue – an initiative to assist the homeless, Marymead, Lifeline’s Clubcare and the Spastic Centre, which totals in excess of $ 90,000.

I would like to thank Rod Frazer and the staff in the Executive Offi ce for the excellent support provided to the committee of Carolynne Ryan, David Grimmond, Kim Marshall and John Lewis.

Mary LaughlinChair

COMMUNITY SUPPORT COMMITTEECOMMUNITY SUPPORT COMMITTEE

Mary Laughlin B Arts – Vice President

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The need to work within tighter fi nancial constraints has not dampened the enthusiasm of the Planning & Development Committee. With regular strategic planning sessions, considering the merits

of all possible business developments, and strategic alliances, the committee looks forward to continuing the expansion of member’s facilities as fi nances permit.

WodenThe buildings of the Woden Club precinct and surrounding areas are almost complete, that is except for Stage Four (the auditorium area on the top fl oor). As far as the auditorium area is concerned the committee is currently reviewing a possible alternative use of this area, a low cost measure, until such time as we continue our major fi t out. The multi-storey residential development next door “Sky Plaza” should be completed by the end of this year. Although this building is not part of the Canberra Southern Cross development, the Club will have on the eastern boundary between the two sites, a 6m landscaped walkway complete with appropriate lighting.

The multi-storey car park with direct entry into the Club has certainly been well received by our members. Being well lit, out of the weather, and with security cameras, gives us all that extra comfort on our visits.

Members and guests are asked to be

patient while the Club experiments with different areas within the club, in particular “Henrys” junior area, Fine Dining and Function areas. Management, together with the Member Services Committee, are currently undergoing a review of these areas. The Club does not expect any major disruption in these areas.

Yamba Sports Club is still of concern. The Board instigated a Sale/Leaseback agreement on the Yamba site (excluding the Pitch & Putt area) on the 30/9/2004. It is aware that there are many members, especially those from the bowling greens, the gym, the basketball stadium, and the pitch & putt, that enjoy the atmosphere Yamba offers. As they say there’s more! The patronage at the Yamba Club needs to be increased for the Club to extend its lease beyond the November 2007 renewal date.

TuggeranongDuring the year the Committee considered the purchase of the parking area adjacent to the Tuggeranong Club and recommended that at a reasonable purchase price it would be benefi cial to the future development of this Club. Our valuations revealed a reasonable price, however the land was sold following auction well above valuation. This together with the downturn in poker machine revenue (12%-14%) with the ACT Governments ban on the use of $100 & $50 notes in gaming machine note acceptors, was beyond the Board’s expectations for a car park investment and it was decided to continue with other options.

The design of smoking areas to confi rm to ACT regulations due to commence on

PLANNING & DEVELOPMENT COMMITTEE REPORT PLANNING & DEVELOPMENT COMMITTEE REPORT

Bob Lloyd - Senior Vice President

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In my second year as chair of the Members Services Committee, I am pleased to report that club members have continued to receive a high standard of service at all the Club’s venues.

The Members Services Committee

has responsibility for investigating new services and facilities that may be of interest to members and monitor the quality of the current services. The committee also has responsibility to maintain the high standard of dress and behaviour from members and their guests.

Since the completion of our capital works at the Woden venue, there has been a consolidating of services at this venue.

There are three main eating areas, the Golden Grille, Café Cosmo and Albertos. In addition, the Star Café provides fresh food ready to eat every day until late. The Golden Grille, open for lunch and dinner, provides an excellent menu catering for all palates. At the top of the stairs, Café Cosmo provides fi ne dining at reasonable prices in a quiet atmosphere. This venue is perfect for that special occasion. The committee are looking at innovative ways of making better use of this space particularly focusing on facilities for members with young families. There is always a variety of entertainment for members at Woden with Jazz at the Cross particularly well attended by members.

The Southern Cross Club Tuggeranong continues to cater for families with Tunz of Fun, the enclosed amusement machine area, integral to this service. The Valley

MEMBERS SERVICES COMMITTEE

1/12/06 is currently under review by the Planning & Development Committee and the construction work will be completed by this time, not only at Tuggeranong but also at our other venues.

Yacht Club

A series of preliminary Sketch and Floor plans for a new look Yacht Club were presented to the Committee by a design architect recently. This was done in conjunction with a current building report. These plans are certainly exciting for the longer term development of the Yacht Club when fi nances allow. In the meantime the Committee is looking at the short term possibilities to improve the current facilities and services especially in respect to dining.

I would like to thank the Commodore of the Sailing Club Peter Dalton and his

committee for their cooperation during the year.

In order for the CSCC to remain at the forefront of the premier clubs in Canberra, the Planning & Development Committee will continue to plan for the medium to long term, being mindful of the short term requirements of all our valued members. Finally, I would like to thank the Planning & Development Committee members Carolynne Ryan, Adrian O’Loughlin, Jack Rice, David Grimmond and other members of the Board, Management and Staff for their support and advice during the year.

Bob LloydChairmanPlanning & Development Committee


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Grille provides bistro meals at reasonable prices. This year saw the introduction of the Valley Carvery providing premium roasts for lunch and dinner. Jackson’s (upstairs) provides modern Australian cuisine in a quiet non-smoking environment. Live local bands entertain members in the Southern Cross Arms on Saturday nights. The committee aims to monitor the services provided at Tuggeranong and endeavour to meet members needs.

The restaurant at the Southern Cross Yacht Club offers a choice of indoor or alfresco dining overlooking the lake. I would like to invite members to dine on Fish ‘n’ Chips while taking in the view of the lake. The MV Southern Cross departs daily for a trip around Lake Burley Griffi n. This is the perfect way to view the lake and its surrounds.

The Yamba Club provides an intimate atmosphere to relax after a hard days work or play. The bowling greens, the basketball stadium, the gym and the pitch and putt facilities all provide good services for members in this precinct. Get together with friends and enjoy the Terrace Restaurant that has the best quality, value for money, three-course buffet in town.

The Canberra Southern Cross Club received the ClubsACT, Members Services Award (Large Club Category) again this year. This gives us confi dence in the services we are meeting the expectations of our members. The committee welcomes feedback from members on any issue. Whether you are satisfi ed or not with the service or the facilities provided please let the Duty Manager or a Supervisor know at the time or write to me or a member of the committee at the Club.

Members should use the Canberra Southern Cross Club website at www.cscc.com.au. to fi nd the latest information about food and entertainment and details of the many social and sports clubs that operate within the Club. This year saw the introduction of renewing your membership on-line. Its easy, so give it a try.

Finally, I would like to thank my committee of Simon Plummer, David Grimmond, Kim Marshall and John Lewis. Our thanks also go to the management team of CEO Greg Mitchell, Chief Operating Offi cer Bevan Paul and the Company Secretary Rod Frazer

Mary LaughlinChair

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The fi rst quarter of the fi nancial year under review commenced strongly at all venues with Woden exceeding expectations.

However the Canberra Southern Cross Club, as did the whole Club industry, felt the fi nancial

impact of the banning of the use of $100 and $50 notes in the gaming machines note acceptors. What gain was made in the fi rst quarter was quickly lost over the next nine months. This coupled with additional competition in the Tuggeranong area meant that the organisation did not achieve its fi nancial year targets.

Whilst the annual report will show a signifi cant profi t, this profi t is attributed to the capital gain on the sale of the Yamba site. The actual trading activity improved some $300,000 from last year.

During the year the Board and Management have continuously reviewed the operations of the Club, in particular effi ciency, provision of products and customer service. As a consequence of these reviews you may have already noticed some changes. These changes are designed to be in the best interest of the organisation which in turn relies on the patronage of its members. Therefore if you feel that these changes are not in the best interest of the members I would be happy to discuss the matter with you.

The future environment for the club industry will be challenging. (to put it mildly). Whilst

the fi nancial year 2005/2006 is seen at this stage as interference free, December 2006 sees the introduction of non smoking within Clubs. Figures from Victoria which had a partial smoking ban two years ago saw an initial decline in gaming revenue of 18%. The average decline over the two years has been 12%. There is no other evidence to suggest that the ACT (under much stricter non smoking criteria) will not see a reduction of at least 15% in gaming revenue from December 2006. In addition, from July 2007, the gaming revenue tax will be increased by 16.7%. Based on this years gaming revenue an additional $500,000 in tax will be paid for a full fi nancial year.

Over the last twelve months the Canberra Southern Cross Club has continued to provide high quality product and services to its members. This achievement was recognised by the Canberra Southern Cross Club winning the ClubsACT Member Services Award for the fourth year in a row. In addition, the Club Development Award was won in recognition of the redevelopment works carried out over the last two years. Commendations were received for Industry Contribution and Jackson’s Restaurant & Bar at the Tuggeranong Venue. I would like to personally congratulate all staff who were part of the application process.

The winning of the awards and the ongoing provision of high quality products and services does not just happen. It is a combination of the Canberra Southern Cross Club team made up of some 380 staff, from reception to administration, who all make signifi cant contributions towards making the Canberra Southern Cross Club

CHIEF EXECUTIVE OFFICER’S REPORTCHIEF EXECUTIVE OFFICER’S REPORT

Greg MitchellChief Executive

Offi cer

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Recent developments have raised the issue of Canberra clubs and their support of the Canberra community. The Canberra Southern Cross Club has been caught up in this issue as well.

I want to take this opportunity to set the record straight and dispel any notion that clubs are reducing their desire to support the community. If permitted clubs will continue to be very much part of the Canberra community landscape well into the future.

What is sometimes forgotten is that many clubs are now incorporated – some of their own volition – but also as a result of ACT Government policy introduced in 2001. While clubs are not for profi t, the Directors on the Boards of clubs are no different to their commercial counterparts and operate under the full glare of the Corporations law.

This means that club Directors are required by Corporations Law to do everything in their power to ensure that their clubs are operated effi ciently and effectively to the benefi t of their members. Club viability

and sustainability are very much front and centre of the Directors’ minds - it has to be, otherwise they would be derelict in their fi duciary duty and be liable to quite onerous and severe sanctions.

On those occasions when there is a downturn in activity or a sustained reduction in revenue either actual or forecast, Boards have to make tough decisions about their clubs’ operations. This means they are obliged to look at the full range of costs and expenditures on the one side and revenue strategies on the other side to deal with the situation and to remain in business.

This is the situation facing all clubs now, and the Canberra Southern Cross Club is no exception.

ClubsACT, on behalf of the club industry, have made no secret of the fact that clubs are facing a very challenging period with the recent restriction on note acceptors, the impending smoking ban and the prospect of a substantial increase in gaming tax from July 2007.

CLUBS ACT OPEN LETTER TO MEMBERSCLUBS ACT OPEN LETTER TO MEMBERS

the Industry Leader that it is. Therefore I would like to extend my appreciation to all staff of the Canberra Southern Cross Club for their ongoing dedication and support.

I would like to thank my Executive Team of Carol Sawyer - Chief Financial Offi cer, Bevan Paul – Chief Operating Offi cer, James Hall – Human Resource Manager and Rod Frazer – Company Secretary for their continuous support and management skills.

The Board of Directors headed by Paul Rollings have spent considerable time over the last twelve months reviewing

the strategic direction of the Canberra Southern Cross Club. With all the previously mentioned items to have a signifi cant impact on the Canberra Southern Cross Club in the not to distant future, Board members will be required to continue these commitments to ensure the ongoing success of the Canberra Southern Cross Club.

I commend the Board for their ongoing commitment and appreciate their support.

Greg MitchellChief Executive Offi cer

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Against this backdrop many clubs have been reviewing their expenditures, implementing cost cuts and encouraging behavioural change in club patrons. Where clubs have the opportunity and fi nancial resources, they are making structural changes to accommodate smokers in ‘unenclosed areas”.

Unfortunately, clubs’ discretionary spends in the form of their formal community contributions cannot be immune from this exercise, and it is not surprising that some clubs have made decisions to reduce their contributions to recipients to levels that are closer to the legislated amount, and this is affecting some affi liated sporting groups, charities and welfare organisations.

But it should also be remembered that such contributions have fl uctuated over recent years refl ecting the circumstances of the time and should the situation improve clubs will no doubt increase their contributions as they have done in the past.

The key thing to remember is that all revenue (including gaming revenue) earned by ACT clubs is distributed in a range of ways – back to the community:

• fi rst, the Government receives their share in the form of gaming tax and

other charges levied by the ACT Government and at the Federal level, GST;

• secondly, there is the legislated requirement to allocate at least 7% of NGMR to eligible community recipients and clubs have allocated consistently more – an additional 5-7% over recent years;

• thirdly, the remainder is then used by the club to buy goods and services, pay wages, service debt etc – in others words it is used to operate the club; and

• fi nally, any residual revenue is then used to enhance the services and amenities for members, improve club facilities and community infrastructure, and invest in the club’s future.

None of the surplus or excess revenue is able to be accrued privately – dividends are not paid to individuals. The fact is that the money stays with the club and is used for the benefi t of its members – the people of Canberra who are part of the ACT community.

Bob SamarcqChief ExecutiveClubsACT

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Can you believe it has been 10 years since the Southern Cross Health Club fi rst opened its’ doors? That’s right, in late1995 Richard & Inge Drake, on behalf of the Southern Cross Club commenced trading at what used to be the old Club Henry site. The mandate of the Club was, and still is, to provide all Southern Cross Members with a clean, up to date, service focused facility, at a low price. The Club Board committed over $500,000 to ensure the Health Club was stocked with the best equipment available (at today’s prices and to do the same set-up would cost in excess of $1.2 million). Over the ensuing 10-year period we have spent over $700,000 continually updating the equipment to stay ahead of our competitors.

Even more importantly the Club Board chose the reputable Drake’s, who set about developing a business strategy and philosophy that focused on delivering services to Members, rather than just selling Fitness Memberships. The foundation set by the Drake’s carries on today, and customer satisfaction will continue to be the primary business driver while ever I stay involved with the Club!

For me personally, it is nearly 9 years since I agreed to come down to Canberra to help Richard, Inge and the team in their quest to become Canberra’s premier fi tness provider. I initially agreed to a 1-year deal, but soon found myself entrenched in the lifestyle this city has to offer and now consider Canberra my permanent home.

Over the past 10 years the Health Club has helped over 10,000 Canberran’s enjoy a greater quality of life. We have achieved this by focusing our resources on helping

people achieve their desired health goals, and by trying to make the Club comfortable to novice exercisers (unlike most ‘Gyms’) as well as experienced trainers. I sincerely congratulate and thank all the Members, new and old, for supporting the Health Club over the years!

On September 10th we celebrated the Club’s 10-year anniversary by hosting the inaugural 2005 ACT Community Health Expo & Open Day. We invited high profi le organizations like Diabetes Australia, Arthritis Australia, The Heart Foundation and The Cancer Council, as well as involving local businesses like The Athlete’s Foot & Chiropractic Health Services, to provide their knowledge for FREE and answer questions. The day was a huge success. For more information on the Health Services we provide go to www.southerncrosshealthclub.com.au, or call the Health Club on 62837340.

I would like to congratulate the Club Board for their vision and commitment to the Health of their Members. I also congratulate and thank the Club CEO Greg Mitchell for his continued support towards our business strategies; these include eventually providing all Canberran’s with the chance to enjoy superb Health & Fitness Facilities at a reasonable price. Last of all I would like to thank the Health Club staff, headed by the managers, Duncan, Kris, Kath and Jacqui, for their tireless work, personal sacrifi ce and honesty. Your efforts are the driving force behind the success of the Health Club. I thank you!

Yours in health,Richard Peil

HEALTH & FITNESS CENTRE

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The trading performance of the club is not as good as the bottom line surplus of $1.36 million suggests. The surplus results purely from a profi t made on the sale of Yamba; the club lost around $570,000 on

normal trading operations.

In terms of core trading, apart from poker machine revenue the Club performed reasonably well overall. For the combined venues, revenue from beverage and food sales was up on last year. This refl ects the continued appreciation by members of the very good services provided by the Club. As could be expected the Woden venue is the best performer of the Group; on the other side of the ledger Yamba continues to incur quite heavy losses.

The major issue for the year was that gaming revenue fell far below budget. As can be seen from the statement by the CEO of ClubsACT all clubs faced a similar situation. In the case of CSCC, the fi rst quarter of the year was quite profi table followed by losses in most months in the rest of the fi nancial year. Because Woden started from a very low base, overall the Club’s performance in gaming compared to the previous year was amongst the best in the ACT, but revenue was insuffi cient to pull the Club into profi t for the year.

The future is going to be tough. The Club is budgeting for very small surpluses in 2005-06 and 2006-07. The smoking ban legislated for December 2006 is expected to have a serious impact on revenue and based on

evidence from Victoria where lesser bans were introduced some years ago the Club is budgeting for a 20% downturn in poker machine revenue. Looking further ahead, the Government’s proposed increase of 16.7% in Gaming Tax from 1 July 2007 will have a very severe effect on profi tability in that year.

Despite the diffi cult environment, the club remains asset strong with very positive cash fl ow and the future for the club looks quite bright. The challenge for this club (and other clubs) is to lessen reliance on poker machines while improving services and profi tability in other activities. No club is better placed than this one to achieve these outcomes.

The Financial Management Committee’s major objectives continue to be monitoring and reporting on the fi nancial performance of the club and to advise on the fi nancial viability of investments. A series of processes ensures that the Club fulfi ls its obligations to all stakeholders.

Each month the Committee measures the performance of the Club against the budget and a regimen of benchmarks contained in the Club’s business plan. A member of the Committee heads up the Internal Audit Committee which reports each month. Additionally the Financial Management Committee is responsible for the risk Management Plan.

In the fi nancial year under review the club concluded a 3-year cycle of reports covering all the risk areas identifi ed in the Risk Management Plan. That plan was introduced after a review by independent consultants and following a further review the club will now launch into a second

FINANCIAL MANAGEMENT COMMITTEE REPORTFINANCIAL MANAGEMENT COMMITTEE REPORT

Adrian Caddy PSM– Vice President

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plan. It is worth noting that recently, the existence of the plan was a factor in gaining reduced insurance premiums.

Once again the Club has provided much more fi nancial information than is legally required and in a form that the Board hopes is meaningful to most members. This year we have included a new chart to show you where the dollar that you, as a member, slotted into a poker machine was distributed; importantly it shows that only 4 cents of the dollar was ‘garnered’ by the Club to cover general overheads and

fi nance future developments.

I take this opportunity to thank the Committee, Adrian O’Loughlin, Simon Plummer, Jack Rice and John Lewis. I thank the management group, Greg Mitchell, Rod Frazer and Carol Sawyer for excellent and timely reports that made our work possible. I also thank the Commonwealth Bank for its advice and support in a diffi cult year.

A.F.CaddyVice President

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DIRECTOR’S REPORTThe directors of Canberra Southern Cross Club Limited submit herewith the annual fi nancial report for the fi nancial year ended 30 June 2005. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

The names and particulars of the directors of the company during or since the end of the fi nancial year are:

Name Special Years Responsibilities Service OccupationP. L. Rollings President 14 RetiredR. W. Lloyd Senior Vice President 9 Company DirectorA. F. Caddy P.S.M., B Comm Vice President 31 RetiredM. B. Laughlin B Arts Vice President 12 Public ServantD. N. Grimmond OAM FREIA Director 4 Real Estate AgentJ. J. Lewis Director 2 Company DirectorK. Marshall Director 2 Public ServantJ. A. O’Loughlin AFSAE Director 29 Executive DirectorS. C. Plummer Director 6 ManagerJ. J. Rice B Econ. Director 24 Business ManagerC. A. Ryan B Arts Director 6 Retired

PRINCIPAL ACTIVITIESThe consolidated entity’s activity in the course of the fi nancial year was the operation of licensed club facilities.

During the fi nancial year there was no signifi cant change in the nature of that activity.

DIVIDENDSIn accordance with the Articles of Association, the company is a company limited by guarantee to the extent of $2.00 per member, and accordingly no shares or debentures have been issued and no dividends have been recommended or paid since the start of the fi nancial year.

REVIEW OF OPERATIONSOperations comprised the running of licensed club facilities and the provision of member services.

CHANGES IN STATE OF AFFAIRSDuring the fi nancial year there was no signifi cant change in the state of affairs of the consolidated entity other than that referred to in the fi nancial statements or notes thereto.

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SUBSEQUENT EVENTSThere has not been any matter or circumstance, other than that referred to in the fi nancial statements or notes thereto, that has arisen since the end of the fi nancial year, that has signifi cantly affected, or may signifi cantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future fi nancial years.

FUTURE DEVELOPMENTSDisclosure of information regarding likely developments in the operations of the consolidated entity in future fi nancial years and the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this information has not been disclosed in this report.

INDEMNIFICATION OF OFFICERS AND AUDITORSDuring the fi nancial year, the company paid a premium in respect of a contract insuring the directors of the company (as named above), the company secretary, and all executive offi cers of the company and of any related body corporate against a liability incurred as such a director, secretary or executive offi cer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

The consolidated entity has not otherwise, during or since the fi nancial year, indemnifi ed or agreed to indemnify an offi cer or auditor of the company or of any related body corporate against a liability incurred as such an offi cer or auditor.

DIRECTORS’ MEETINGSThe following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the fi nancial year and the number of meetings attended by each director (while they were a director or committee member).

BOARD OF DIRECTORS MEETINGSDirectors Held AttendedA. F. Caddy 12 12D. N. Grimmond 12 9M. B. Laughlin 12 9R. W. Lloyd 12 12J. A. O’Loughlin 12 10J. J. Rice 12 10P. L. Rollings 12 12S. C. Plummer 12 11J. J. Lewis 12 12K. Marshall 12 9C. A. Ryan 12 11

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Financial Member Planning and Management Services Development Committee Committee CommitteeDirectors Held Attended Held Attended Held AttendedA. F. Caddy 13 13 - - - -D. N. Grimmond - - 11 7 12 7M. B. Laughlin - - 11 11 - -R. W. Lloyd - - - - 12 11J. A. O’Loughlin 13 13 - - 12 10J. J. Rice 13 9 - - 12 10P. L. Rollings - 5 - 2 - 4S. C. Plummer 13 13 11 10 - -J. J. Lewis 13 13 11 11 - -K. Marshall - - 11 11 - -C. A. Ryan - - - - 12 10

-: Director not required to attend Committee Meeting

In all cases of absences, directors were absent on club business, on leave or absent due to work commitments. In all instances leave of absence was sought and approved.

The auditor’s independence declaration is included in page 27 of the fi nancial report.

Signed in accordance with a resolution of the directors made pursuant to Section 298(2) of the Corporations Act 2001.

On behalf of the Directors

A F CADDY

Director

Dated: 7 September 2005 P L ROLLINGS

Canberra, ACT Director

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Deloitte Touche TohmatsuA.C.N. 74 490 121 060

Level 28 Brindabella Circuit

Brindabella Business Park ACT 2609GPO Box 823

Canberra ACT 2601 Australia

DX 5661Tel: +61 (0) 2 6263 7000

Fax: +61 (0) 2 6263 7001www.deloitte.com.au

Canberra Southern Cross Club Limited

PO Box 53

WODEN ACT 2606

7 September 2005

Dear Directors

Canberra Southern Cross Club Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Canberra Southern Cross Club Limited.

As lead audit partner for the audit of the fi nancial statements of Canberra Southern Cross Club Limited for the fi nancial year ended 30 June 2005, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

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

Yours sincerely

DELOITTE TOUCHE TOHMATSU

David Black

Partner

Chartered Accountants

Liability limited by the Accountant’s Scheme, approved under the Professional Standards Act 1994 (NSW).

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Deloitte Touche TohmatsuA.C.N. 74 490 121 060

Level 28 Brindabella Circuit

Brindabella Business Park ACT 2609GPO Box 823

Canberra ACT 2601 Australia

DX 5661Tel: +61 (0) 2 6263 7000

Fax: +61 (0) 2 6263 7001www.deloitte.com.au

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF CANBERRA SOUTHERN CROSS CLUB LIMITED

Scope

We have audited the concise fi nancial report of Canberra Southern Cross Club Limited for the fi nancial year ended 30 June 2005 as set out on pages 29 to 37, in order to express an opinion on it to the members of the company. The concise fi nancial report includes the consolidated fi nancial statements of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the fi nancial year. The company’s directors are responsible for the concise fi nancial report.

Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance whether the concise fi nancial report is free of material misstatement. We have also performed an independent audit of the full fi nancial report of Canberra Southern Cross Club Limited for the year ended 30 June 2005. Our audit report on the full fi nancial reports was signed on 7 September 2005, and was not subject to any qualifi cation.

Our procedures in respect of the audit of the concise fi nancial report included testing that the information in the concise fi nancial report is consistent with the full fi nancial report, and examination on a test basis, of evidence supporting the amounts, discussion and analysis, and other disclosures which were not directly derived from the full fi nancial report. These procedures have been undertaken to form an opinion whether, in all material respects, the concise fi nancial report if presented fairly in accordance with Accounting Standard AASB 1039‘ Concise Financial Reports’.

The audit opinion expressed in this report has been formed on the above basis.

Audit Opinion

In our opinion, the concise fi nancial report of Canberra Southern Cross Club Limited complies with Accounting Standard AASB 1039 ‘Concise Financial Reports’.

DELOITTE TOUCHE TOHMATSU

David Black

Partner

Chartered Accountants

7 September 2005Liability limited by the Accountant’s Scheme, approved under the Professional Standards Act 1994 (NSW).

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CANBERRA SOUTHERN CROSS CLUB LIMITEDDIRECTORS’ DECLARATION

The directors declare that:

(a) the attached fi nancial statements and notes thereto comply with Accounting Standard AASB 1039’ Concise Financial Reports’; and

(b) the attached fi nancial statements and notes thereto have been derived from the full fi nancial report of the company.

Signed in accordance with a resolution of the directors made pursuant to Section 295(5) of the Corporations Act 2001.

On behalf of the Directors

A F CADDY

Director

Dated: 7 September 2005 P L ROLLINGS

Canberra, ACT Director

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FINANCIALS

STATEMENT OF FINANCIAL PERFORMANCEFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005

Consolidated Note 2005 2004 $ $

Sales revenue 2 31,253,832 30,681,365

Cost of sales 2 (8,718,997) (8,951,874)

Gross Profi t 22,534,835 21,729,491

Other revenue from ordinary activities 2 11,401,419 7,318,343

Administration expenses (15,085,327) (15,897,366)

Borrowing costs 2 (753,424) (1,091,844)

Marketing expenses (1,372,325) (287,522)

Occupancy expenses (6,126,988) (6,340,363)

Operating lease expenses (573,750) -

Show expenses (668,218) (774,627)

Net value of property, plant and equipment disposals (6,827,239) (4,564,574)

Other expenses from ordinary activities (1,162,192) (954,626)

Profi t/ (Loss) From Ordinary Activities Before Income Tax Expense 1,366,791 (863,088)

Income tax expense relating to ordinary items - -

Net Profi t / (Loss) 1,366,791 (863,088)

Total Revenue, Expenses and Valuation Adjustments Recognised Directly in Equity - -

Total Changes in Equity Other than those Resulting from Transactions with Owners as Owners 1,366,791 (863,088)

Notes to the fi nancial statements are included on pages 33 to 37.

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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2005

Consolidated Notes 2005 2004 $ $CURRENT ASSETS

Cash assets 3,279,255 3,837,588

Receivables 579,156 615,058

Inventories 397,356 408,895

Other fi nancial assets 174,859 166,138

Total Current Assets 4,430,626 5,027,679

NON-CURRENT ASSETS

Other fi nancial assets 151,384 208,681

Receivables 35,000 35,000

Property, plant and equipment 43,581,539 51,235,879

Total Non-Current Assets 43,767,923 51,479,560

TOTAL ASSETS 48,198,549 56,507,239

CURRENT LIABILITIES

Payables 2,040,506 2,516,833

Interest-bearing liabilities 1,331,245 1,120,995

Provisions 624,048 609,377

Other 341,096 190,904

Total Current Liabilities 4,336,895 4,438,109

NON-CURRENT LIABILITIES

Interest-bearing liabilities 7,483,326 17,110,852

Provisions 201,137 276,167

Other 128,289 -

Total Non-Current Liabilities 7,812,752 17,387,019

TOTAL LIABILITIES 12,149,647 21,825,128

NET ASSETS 36,048,902 34,682,111

MEMBERS’ FUNDS

Retained profi ts 36,048,902 34,682,111

TOTAL MEMBERS’ FUNDS 36,048,902 34,682,111


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STATEMENT OF CASH FLOWSFOR THE FINANCIAL YEAR ENDED 30 JUNE 2005

Consolidated Notes 2005 2004 $ $Cash Flows from Operating Activities: Receipts from customers 37,221,735 36,005,740

Payments to suppliers and employees (32,663,303) (30,756,274)

Interest received 80,452 156,273

Interest and other costs of fi nance paid (753,424) (1,091,844)

Net cash provided by operating activities 3,885,460 4,313,895

Cash Flows from Investing Activities:

Payments for property, plant and equipment (3,536,039) (13,041,004)

Proceeds from the sale of property, plant and equipment 8,460,945 7,497,059

Net cash provided by /(used) in investing activities 4,924,906 (5,543,945)

Cash Flows from Financing Activities: Repayment of loan (53,377) -

Proceeds from borrowings - 7,718,988

Repayment of borrowings (9,363,899) (4,500,000)

Net cash (used in)/ provided by fi nancing activities (9,417,276) 3,218,988

Net Increase / (Decrease) in Cash Held (553,533) 1,988,938

Cash held at the beginning of the year 3,957,585 1,968,647

Cash at the end of the year 3,404,052 3,957,585


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NOTE 1 – BASIS OF PREPARATIONThe concise fi nancial report has been prepared in accordance with the Corporations Act 2001 and Accounting Standard AASB 1039 ‘ Concise Financial Reports’. The concise fi nancial report, including the fi nancial statements and specifi c disclosures included in the concise fi nancial report, has been derived from the full fi nancial report of Canberra Southern Cross Club Limited.

A full description of the accounting policies adopted by the consolidated entity is provided in the 2005 fi nancial statements, which form part of the full fi nancial report. The accounting policies of the consolidated entity are consistent with those of the previous fi nancial year.

NOTE 2 – PROFIT/ (LOSS) FROM ORDINARY ACTIVITIESThe profi t from ordinary activities before income tax includes the following items of revenue and expense:

Consolidated 2005 2004 $ $(a) Operating Revenue

Sales revenue:

Gaming revenue 18,459,844 18,111,743

Beverage sales 4,697,393 4,567,531

Food sales 8,096,595 7,928,865

Pitch and Putt - 73,226

31,253,832 30,681,365

Other operating revenue:

Other rental revenue 986,923 754,309

Interest revenue – other entities 80,452 156,273

Membership income 362,658 365,780

Bowling income 47,809 44,660

Members’ entertainment income 614,487 684,151

Other revenue 848,145 743,427

2,940,474 2,748,600

Total Operating Revenue 34,194,306 33,429,965

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NOTE 2 – PROFIT/ (LOSS) FROM ORDINARY ACTIVITIES (CONTINUED)

Consolidated 2005 2004(b) Non-Operating Revenue $ $Proceeds from sale of non-current assets:


Total Revenue 42,655,251 37,999,708

(c) Expenses

Cost of sales:

Gaming 3,745,431 4,113,990

Beverage sales 1,965,610 1,903,889

Food sales 3,007,956 2,933,995

Total Cost of sales 8,718,997 8,951,874

Borrowing Costs:

Interest - other entities 747,174 1,076,718

Interest - fi nance leases 6,250 15,126

753,424 1,091,844

Net transfers (from)/to provisions:

Employee benefi ts (60,359) 120,187

Bad debts 145 40,908

Bad debts written off - other entities 11,573 42,139

Depreciation and amortisation of non-current assets:

Buildings 1,629,993 1,605,144


Leased assets 70,607 141,401

4,363,141 4,354,696

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ConsolidatedNOTE 3 – EMPLOYEE ENTITLEMENTS 2005 2004 $ $The aggregate employee entitlement liability recognised and included in the fi nancial statements is as follows: Provisions for employee benefi t Current 624,048 609,377

Non-current 201,137 276,167

825,185 885,544

Number of employees (on a full-time equivalent basis) at the end of the fi nancial year 162 174

NOTE 4 – REMUNERATION OF AUDITORS Auditing the fi nancial report 31,040 30,130

Other services 44,250 43,950

75,290 74,080

NOTE 5 – EXECUTIVES REMUNERATIONThe number of executives who received or were to receive total remuneration of $100,000 or more during the year:

$100,000 - $200,000 2

$200,001 - $300,000 1

NOTE 6 – DIRECTORS’ REMUNERATION The directors of the consolidated entity during the year were:

P. L. Rollings R. W. Lloyd

J. J. Rice, B.Econ. J. A. O’Loughlin, AFSAE

A F Caddy, P.S.M., B.Comm. K. Marshall

D. N. Grimmond OAM FREIA J. J. Lewis

M. B. Laughlin B Arts C. A. Ryan B Arts

S. C. Plummer

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NOTE 6 – DIRECTORS’ REMUNERATION(Continued) Consolidated 2005 2004The aggregate of income paid or payable, or otherwise made available, in respect of the fi nancial year, to all directors of the company, directly or indirectly, by the company or by any related party. This represents payments for out of pocket expenses as approved at the 2001 Annual General meeting in accordance with Article 56A of the articles of association. 90,080 85,591

The number of directors of the consolidated entity whose total income falls within each successive $10,000 band of income:

$0 - $9,999 10 13

$10,000 - $19,999 1 -

NOTE 7 – SEGMENT REPORTINGThe consolidated entity operates in one business segment, being the operation of a registered club. Although this business generates different revenues (refer note 2) the risks and returns are considered to be similar. The consolidated entity also operates in only one geographic segment as it operates solely within the ACT.

NOTE 8 – CONTINGENT LIABILITIESIn the ordinary course of business, the consolidated entity becomes involved in litigation, most of which falls within the consolidated entity’s insurance arrangements. While the outcomes are uncertain, the directors believe that no other matters exist which would have a material adverse effect on the consolidated entity’s operations.

The Canberra Southern Cross Club Limited has applied to the Australian Taxation Offi ce (ATO) for a private ruling in respect of a transaction between the Canberra Southern Cross Club Limited and the ACT Government. If the private ruling is not accepted by the ATO, the Canberra Southern Cross Club Limited may be liable to make a penalty payment to the ATO of $183,882.

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NOTE 9: REMUNERATION UNDER CONTRACTUAL ARRANGEMENTS AND CONSULTANCIESContractors or consultants who received or were due to receive $49,999 or more under contractual arrangements:

Contractor/Consultant ACTEWAGL

Aristocrat Leisure Industries

Chubb Security

De Marco Property Developments

Deloitte Touche Tohmatsu

EM & EJ Security

Epicurean Contract Caterers

Fox Sports

GHD Pty Ltd

Guideline ACT Pty Ltd

J G Service

Kell & Rigby

Leading Edge Amusements

Mayfair Cleaning Services

Monica Lee

Reel Gaming Solutions

Schiavello

SITA Environmental Solutions

Sky Channel

St Hilliers Interiors

NOTE 10 – ADDITIONAL COMPANY INFORMATIONCanberra Southern Cross Club Limited is a company limited by guarantee, incorporated and operating in Australia. Its registered offi ce and principal place of business is:

92-96 Corinna StreetPhillip ACT 2606

Every member undertakes to contribute to the assets of the company in the event of and for the purposes of the winding up of the company, an amount not exceeding $2. There were 76,330 members at 30 June 2005 (2004: 76,699 members).

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Canberra Southern Cross Club Consolidated Expenses

From Ordinary Activity 2005

Cost of Goods – $4.9 Million

Utilities (Electricity, Fuel, Phone and

Rates) – $1.2 Million

Salaries and On Costs – $10.1 Million

Other Expenses – $13.2 Million

Gaming Promotions – $898, 785

Depreciation and Amortisation – $4.3 Million

Canberra Southern Cross Club Consolidated Revenue

From Ordinary Activity 2005

Gaming Revenue – $18.4 Million

Beverage Revenue – $4.6 Million

Food Revenue – $8.0 Million

Membership Income – $369,478

Members Entertainment

Income – $614,487

Other Revenue – $2 Million

Canberra Southern Cross Club Gaming Trading 2005

Gaming Machine Levy – $3.4 Million

Depreciation – $1.8 Million

Gaming Promotions – $884, 745

Wages and On Costs – $1.8 Million

Other Expenses – $858, 910

Operating Surplus – $9.5 Million

Canberra Southern Cross Club Liquor Trading 2005

Cost of Sales – $1.9 Million

Depreciation Expenses – $54,925


Other Expenses – $346,043

Operating Surplus – $652, 739

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Canberra Southern Cross Club Members Trading 2005

Entertainment Expenses – $314, 632

Members Promotion Expenses – $532,304

Wages and On Costs – $711,895


Operating Defi cit – $1.5 Million

Canberra Southern Cross Club Food Trading 2005

Cost of Goods – $2.9 Million

Depreciation – $109,799



Operating Surplus – $107, 347

Canberra Southern Cross Club Sport and Recreation Trading 2005

Cost of Goods – $86,110

Depreciation – $359,210

Wages and On Costs – $388,862


Operating Defi cit – $58,314

Distribution of Poker Machine Dollars

Return to players

Club Hold

Direct Expenses including taxes and

comunity Expenses

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41

Under our Constitution, three Directors of the Board must retire at each Annual General Meeting (but are eligible for re-election, subject to the usual criteria) which is determined on a rotation basis and the three Directors who need to retire this year are Paul Rollings, Mary Laughlin and David Grimmond. They are all eligible for re-election and have been nominated for election.

One other candidate has nominated for election and therefore we have four candidates standing for the three positions to be declared vacant.

Details of all candidates appear on page 40-41 in this report and members will be requested to vote for the three candidates they would like to see elected as a Director of the Club.

The Board of Directors has appointed the ACT Electoral Commissioner to be

responsible for counting votes for this year’s election and the Board has appointed the Company Secretary, Rod Frazer as the Returning Offi cer.

After the ACT Electoral Commissioner has advised the results of the election the successful candidates will meet with the other eight Directors of the club (prior to the Annual general Meeting on 19th October 2005) and elect the Board Executive for the forthcoming year.

The remaining eight Directors who did not need to stand for election at this time are,

Bob Lloyd, Adrian Caddy, John Lewis, Kim Marshall, Adrian O’Loughlin, Simon Plummer, Jack Rice and Carolynne Ryan.

Rod FrazerCompany Secretary

David Grimmond OAMBoard member for 3 years. Resident of Torrens for 36 years and has been a Real Estate Agent for 33 years. Married to Beverley and they

have 3 adult children. David is a member of the Planning & Development Committee, the Community Support Committee and the Member Services Committee and he is committed to ensuring Club continues to provide economical and quality facilities, particularly for families. In his sporting career over a number of years he represented Australia in both Rugby Union and Rugby League. He also coached Junior Rugby at Marist College and has been awarded Order of Australia Medal for services to Rugby Union and to the community .

Paul RollingsPaul has been on the Board of the Southern Cross Club since January 1992 and is currently serving a second term as President.

Paul is married to Evelyn and they have lived in Chapman since 1975. They have two married children and fi ve grandchildren. Paul retired in 1999 after 30 years as Chief Executive Offi cer at John James Memorial Hospital.

His main focus is on the future success of the club and he is dedicated to providing

ongoing quality services to all members.

Paul is a keen gardener and golfer and attends most Brumbies home games.

ELECTION OF DIRECTORS 2005 ANNUAL GENERAL MEETINGELECTION OF DIRECTORS 2005 ANNUAL GENERAL MEETING

NOMINEES FOR ELECTION OF DIRECTORSNOMINEES FOR ELECTION OF DIRECTORS

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MARY LAUGHLINMary has been a director of the Canberra Southern Cross Club for thirteen years and served as a vice-president for the past two years. She

has served on all committees of the board and is currently the chair of the Member Services Committee and the Community Support Committee in addition to her duties as a vice-president.

Mary’s focus for the next three years will be to ensure that club services meet the needs of all members and that a high level of customer service is maintained at all club venues.

Mary is a public servant with tertiary qualifi cations. She has sound administration and communication skills. She has been an ACT resident since 1970 and lives in Kambah with her husband Stephen.

Sylvia MarshallSylvia is a strategic planner for a Federal Government Department and a member since moving to Canberra in 1991. She lives in Calwell

with her husband, Alex. They have one adult child, currently overseas. Sylvia’s business management skills were developed as a partner in a food retail business in Melbourne. She has also held business management roles in the fi nance and insurance industries. Tertiary qualifi ed in politics, journalism and business management, Sylvia is currently researching a Masters thesis in archaeology. She also enjoys dancing, travelling and current affairs. With considerable experience and an emphasis on good governance, Sylvia is keenly interested in the views of members and staff; and working with all parties to ensure the best for the club.

NOTICE TO MEMBERS – ANNUAL GENERAL MEETINGNOTICE TO MEMBERS – ANNUAL GENERAL MEETING

Members should note that the next Annual General Meeting will be held in the Orion Room at Woden, on Wednesday 19th October 2005 commencing at 8pm.

AGENDA1 Apologies

2 Minutes of the 33rd Annual General Meeting of 20th October 2004

3 Presentation of Annual report.

4. Presentation of Finance Reports and Balance Sheets.

5.Auditor’s Report

6.Election of Directors

7.Appointment and remuneration of Auditors

8.Appointment of Patron.

9 Such other business brought forward in conformity with the Constitution

10 Setting the Director’s honoraria for out of pocket expenses in accordance with

Article 12.6

11. General Business

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You can provide fi nancial support to your local charity or non profi t organisation. The Canberra Southern Cross Club is an offi cial Home loan Referral Source for the Commonwealth Bank. This means the bank will pay a commission to the Canberra

Southern Cross Club for any successful home loan, which will then be forwarded in full to your nominated charity or non profi t organisation. For further information visit www.cscc.com.au

Paul Rollings – President

Bob Lloyd - Senior Vice President

Adrian Caddy PSM– Vice President


Adrian O’Loughlin AFSAE - Director

Jack Rice B Econ - Director

Carolynne Ryan B Arts - Director

Simon Plummer - Director

David Grimmond - Director

Kim Marshall - Director

John Lewis BA, CS, FAICD - Director

Rod Frazer - Company Secretary

2004/2005 BOARD OF DIRECTORS

SUPPORT YOUR LOCAL CHARITY OR NON PROFIT ORGANISATIONSUPPORT YOUR LOCAL CHARITY OR NON PROFIT ORGANISATION

Documents

Annual Report 2004 - 2005