NORTHS GROUP ANNUAL REPORT - Amazon Web · PDF fileDance Chance Development Project ... Jeans for Genes RU OK? Day 5 ... management, transition planning and post-stay support

NORTH SYDNEY LEAGUES CLUB LIMITEDABN 92 000 147 544

NORTHS GROUP ANNUAL REPORTYEAR ENDED 31 DECEMBER 2016

FITNESS

inside front cover page

2 | NORTH SYDNEY LEAGUES CLUB LTD ▶ ANNUAL REPORT 2016

TABLE OF CONTENTS NORTHS Group in the community 4

President and CEO’s Report 40

Directors' Report 42

Auditor's Independence Declaration 45

Statement of Profit of Loss and Other Comprehensive Income 46

Statement of Financial Position 47

Statement of Changes in Equity 48

Statement of Cash Flows 48

Notes to the Financial Statements 49

Directors' Declaration 64

Auditor's Report 65


NORTHS GROUP IN THE COMMUNITYNORTHS, THE GREENS AND LANE COVE CLUB CLUBGRANTS CATEGORY 1 RECIPIENTS

▶ Future Achievement Foundation� Max Potential Program

▶ Phoenix House� Building Sustainable Living Skills Program

▶ Mary’s House Domestic Violence Shelter, � Positive Parenting Program

▶ Kirribilli Neighbourhood Centre � Wellbeing for Mothers with Post Natal Depression Happy Mum-Happy Bub

▶ Nordoff-Robbins Music Therapy� Musical Instruments for the North Clinic, Crows Nest

▶ Taldumande Youth Services� Life Lessons Educational Program

▶ Learning Links� Speech Therapy at Cammeray Public School

▶ St Vincent de Paul Society� Supper Night in Kirribilli for the homeless

▶ Dance Chance Incorporated� Dance Chance Development Project

▶ Kidsnest Crows Nest Occasional Care� Early Childhood Literacy Program

▶ Autism Spectrum Australia� Early intervention for 5 children in the North Sydney area

▶ Betsafe

CLUBGRANTS CATEGORY 2 RECIPIENTS ▶ North Sydney District Rugby League Football Club ▶ North Sydney District Junior Rugby League Football Club


INTRA-CLUBS ▶ Baseball ▶ Bowls (men’s and women’s) ▶ Bridge ▶ Chess ▶ Cricket ▶ Euchre ▶ Fishing ▶ Golf ▶ Hockey ▶ Indoor Bowls ▶ Junior League ▶ Photography ▶ Runners ▶ Snooker ▶ Softball ▶ Squash ▶ Table Tennis ▶ Tennis

COMMUNITY PARTNERSHIPS ▶ Qantas Pathfinders Revue ▶ Stand Tall The Event ▶ Northbridge Football Club ▶ Centre for Volunteering ▶ XVenture Experience

STAFF-LED FUNDRAISING AND VOLUNTEERING ▶ Daffodil Day ▶ Movember ▶ Jeans for Genes ▶ RU OK? Day


ADDITIONAL IN-KIND SUPPORT FUNDING $265,040

SEAGULLS CLUBGRANTS CATEGORY 1 RECIPIENTS

▶ Tweed Valley Relay For Life ▶ The Family Centre Inc (Creating Opportunities Fund) ▶ St Vincent De Paul Society (Fred’s Place) ▶ Riding For The Disabled Tweed Valley Centre ▶ Men Of League ▶ Life Education NSW ▶ Little Wings Limited ▶ Future Achievement Aust. Foundation (Max Potential) (Tabatinga Christmas Party) ▶ Tweed Valley Early Childhood Intervention Service Inc. ▶ Tweed Heads Community Preschool Inc ▶ Kids In Need Association Inc ▶ Give Me 5 For Kids ▶ Rotary Club Of Kingscliff ▶ Lara Jean Association Inc ▶ Betsafe ▶ Youth Frontier

CLUBGRANTS CATEGORY 2 RECIPIENTS ▶ Tweed Heads Rugby League Club ▶ Kirra Surf Life Saving Club ▶ School Raffles ▶ Bursarys ▶ Seagulls Junior Rugby League ▶ Bilambil Ball ▶ Camp Quality ▶ Dragon Boats ▶ Men Of League ▶ Little Athletics



▶ Netball ▶ SES ▶ Teddy Bears Pre School ▶ Vanuata ▶ Voice Weavers ▶ Scotts Heads ▶ Seagulls Sports Council

INTRA-CLUBS ▶ Chess Club ▶ Croquet Club ▶ Darts ▶ Dragon Boats (Kids In Need Regatta) ▶ Euchre ▶ Fishing Club ▶ J.r.l. ▶ Netball ▶ S.e.a.t.s. ▶ Table Tennis ▶ Ten Pin Bowling

COMMUNITY PARTNERSHIPS

▶ March for Melanoma

STAFF-LED FUNDRAISING AND VOLUNTEERING ▶ seagulls Community Support Squad ▶ The Family Centre Christmas Gift Wrapping ▶ You Have a Friend (Footsteps 4 Food) ▶ The Family Centre (Bunnings sausage sizzle)

$12,876 profit from Learning Links Charity Housie at NORTHS is

equivalent to 172 therapy sessions for children with

learning difficulties

Qantas Pathfinders Review “There’s

something about Joy” raised $154,773 nett for the Royal Institute for

Deaf and Blind Children

Over $265,040 donated to the NORTHS

community through in-kind donations alone

NORTHS commenced a sponsorship with

Northbridge Football Club which supports over 2,500 playing members from under 6’s - seniors.

A GLIMPSE OF 2016

In 2016 there were 25 live ticketed shows at NORTHS delighting

10,418 people

360,000 copies of NORTHS nJOY

magazine distributed around the local area

457,176 main meals were served in 2016

throughout the NORTHS group

NORTHS

154 91 71 11

The Greens Seagulls Lane Cove Club

TOTAL EMPLOYEES OF THE NORTHS GROUP 327Number of employees by venue


TOTAL MEMBERS OF THE NORTHS GROUP 66,197Number of members by venue

NORTHS CAMMERAY

21,648

NORTHS FITNESS

3,008

THE GREENS NORTH SYDNEY

22,103

LANE COVE CLUB

1,056

SEAGULLS

21,390

REVOLUTION FITNESS

1,303


260

< 5 YEARS

7

6-10 YEARS

12

11-15 YEARS

19

16-20 YEARS

29

> 20 YEARS

STAFF YEARS OF SERVICE

DID YOU KNOW?Across the NORTHS Group’s two largest properties, NORTHS and seagulls the clubs reduced their energy consumption significantly from the baseline of 2012.

ELECTRICTY CONSUMPTION

Down 11%

GAS CONSUMPTION

Down 37%

WATER CONSUMPTION

Down 37%

Cumulative energy savings to February 2017 from baseline $1,117,750

ENERGY SAVINGS

Cumulative water savings to February 2017 from baseline $221,019

WATER SAVINGS

Cumulative reduction in energy consumption from baseline 24,379 GJ

ENERGY SAVINGS

Cumulative reduction in water consumption from baseline 47,097 kL

WATER CONSUMPTION

NORTHS FITNESS AND REVOLUTION AT SEAGULLSSignificant increases during 2015 - 2016


10.3 % GROWTH Member attendance at

NORTHS Fitness

56% INCREASE In participation at weekly fitness

classes at Revolution seagulls

CLASS STATISTICS FOR NORTHS FITNESS 2016

56%Average penetration on

all member visits

3,008Total members of NORTHS Fitness

68,417Total attendance

1,652Avg. Weekly attendance. Approx 20 participants per class

COMPARED TO 2015NORTHS Fitness class statistics

TOTAL ATTENDANCE

57, 207

AVG. PENETRATION ON MEMBER VISITS

46%

AVG. WEEKLY ATTENDANCE

1,446


THE MIGHTY BEARS! The North Sydney District Rugby League Football Club compete in the NSW Rugby League Representative Competitions:• Intrust Super Premiership for the full (25) week season• SG Ball (under 18’s) nine week competition• Harold Matthews (under 16’s) nine week competition• Development squads (under 13’s, 14’s and 15’s)

The Bears provide elite development and pathway programs for targeted players. They deliver high performance coaching, training and medical support. In 2016 they had a staff of over 30 including doctors and physiotherapists, and a playing roster of over 150 players per annum.

The North Sydney Bears are also a feeder club to the South Sydney Rabbitohs


Photography: Ian Reilly


Photography: Ian Reilly


JUNIOR BEARS “I am sure you would all agree with me in saying that 2016 has been a successful season both on and off the field with the quality of Junior Rugby League on offer in the North Shore region.” Chairman Perry Lopez

The Junior Bears have 53 teams spanning 8 clubs in the district which spans from Mosman, across to Lane Cove, then north to the Hills and Berowra which takes in 9 Local Government Areas.

The team at the Junior Bears were in regular contact with the 96 primary schools and 35 High Schools in their catchment with the result that over 15,000 children were involved in some kind of Rugby League interaction in 2016.

2016 ▶ 816 registered players | 160 registered volunteers.

All clubs had growth in numbers in the age groups from under 6 to under 12, which provides a solid foundation leading into teenage years.


LANE COVE TIGERS

Supported by the Lane Cove Club and the Junior Bears.The Lane Cove Tigers are a family friendly club that provides an opportunity for boys and girls to play junior rugby league. Their focus is on getting children participating, learning new skills, working as a team, exercising and having fun!The Lane Cove Tigers was founded in 1925 were known as the Tigers from 1956 until 1999. The club was re-formed in 2012 due to the significant interest in rugby league within the local schools, and is one of eight clubs that comprise the North Sydney Bears district rugby league football competition, which ultimately field a NSW Cup Team and is a feeder club for the South Sydney Rabbitohs. The club currently have teams from Under 6s to U11s with their home ground at Tantallon Oval. The Lane Cove Tigers are committed to inclusiveness, excellence, courage and teamwork defining every step.The Lane Cove Club is proud to be a sponsor of the Lane Cove Tigers.


SEAGULLS JUNIOR RUGBY LEAGUE

Founded in 1909, Tweed Heads “Seagulls” Junior Rugby League has been the longest standing club in the Tweed/Byron district & Group 18 Junior Rugby League Competition. In 2010, for the first time, Seagulls Juniors fielded an U/17’s team in the Gold Coast District Junior Rugby League competition.

The colours of our playing strip are the traditional Black & White butchers stripes.

The aim is to foster rugby league in the Tweed/Byron and Gold Coast regions, fielding teams in each of the following age groups:

Mini League - Under 7’s, 8’s and 9’s International League - Under 13’s, 14’s, 15’s , 16’s

Mod League - Under 10’s, 11’s and 12’s U/17’s in the Gold Coast District Junior Rugby League.

Throughout the years many former Tweed Heads “Seagulls” players have gone on to play for the Senior Club as well as at regional and state levels. Several of our players have also played in the National Rugby League competition, and further abroad overseas at an International level.


FUTURE ACHIEVEMENT AUSTRALIA - MAX POTENTIAL PROGRAM

Max Potential equips young adults in the community to manage all aspects of their lives well, through providing one-on-one coaching, group workshops and experiential learning opportunities – such as developing and implementing their own community service project. The community coaches’ skills in coaching are enhanced through the training and practice Max Potential provides over the 22-week program.

Through ClubGRANTS both NORTHS and seagulls involved staff and community members as coaches benefitting dozens of students in their local areas.

“Thank you so much for being my coach for these 22 weeks. I could definitely not have gotten to where I am right now. I am extremely grateful for all the help you have provided me with throughout the program. Through all the ups, downs and tough times your guidance has really helped me to build leadership skills and confidence. Thank you so much.” A North Sydney Boys High School student.


FUTURE ACHIEVEMENT AUSTRALIAMAX POTENTIAL PROGRAM – CHRISTMAS PARTY AT TABATINGA, TWEED HEADS

Zac King from Tweed Rivers High’s community inspired project was to focus on an experience that is often out of reach for many children in Tweed Heads and surrounding areas – a day of play at an indoor family fun centre.

Tabatinga at seagulls was more than happy to help the Max Potential student make this project happen. So thanks to an energetic young adult, Max Potential and Tabatinga, there was a free Christmas party for 50 parents and children who came from Murwillumbah and surrounding areas.

Santa also made a stop with every single child receiving a gift.

The event was a huge success with mini-golf at Tabatinga being the favourite, closely followed by slide races but glow in the dark provided the most laughs.


NORTH SYDNEY BENEVOLENT SOCIETYMARY’S HOUSE DOMESTIC VIOLENCE SHELTER, POSITIVE PARENTING PROGRAM Mary’s House was under renovation in early 2016 and opened its doors November 2016. A range of services are provided to the women (and children) who reside at Mary’s House including case management, transition planning and post-stay support.

NORTHS, through ClubGRANTS gave Mary’s House substantial support for their Positive Parenting Program. This program assists young mothers to build and strengthen their relationship with their children suffering from domestic violence.

NORTHS has also donated funds through the staff Christmas gift as the NORTHS 2016 charity.


ST VINCENT DE PAUL SOCIETY - VINNIE’S KITCHEN, NORTH SYDNEY

For many years St Vincent de Paul Society held a fortnightly meal for the hungry in North Sydney funded by the ClubGRANTS from NORTHS. What made Vinnie’s Kitchen special was the atmosphere that was consciously created by Vinnies. Vinnies members did not just serve their guests, but sat down and engaged with them. They talked about football, fishing and what they would do with a big lottery win. Their aim was to recognise them as people and accord them their inherent dignity.

“I don’t come for the food, though that’s really good. It’s the company that draws me here”.

St Vincent de Paul announced in December 2016 that Vinnie’s Kitchen would cease operating. Increasingly many of their guests were from other parts of the city and there were many alternatives to Vinnie’s kitchen – even if few had its character. In the North Sydney area their focus will be on victims of domestic violence, providing emergency shelter for the homeless and the constant need to assist those who do not have enough to feed and clothe themselves after paying their rent.

“We hung up our utensils reluctantly, but with a big thank you to NORTHS for enabling us to realise the dream”.


KIDSNEST CROWS NEST OCCASIONAL CAREEARLY CHILDHOOD LITERACY PROGRAM Kidsnest is an Occasional Care Centre located in the diverse linguistic community of Crows Nest. The ClubGRANT from NORTHS enabled them to extend their early years learning program for children aged 0 to 6 and ensuring that literacy promotes excitement for learning.

“The new library resources are fabulous - the books are nicely displayed on a low bookshelf the children can reach and browse, and both of my children come home from Kidsnest and talk about new books they have read at childcare. We often end up buying their favourite ones for home as well” - Sarah, Mum.

“Every time I pick up Imi, she is sitting in the library area, looking at books or reading stories to her brother. The new resources have really refreshed that library space, sparking a new interest and love for reading.” - Carmel, Mum.

“I have to go and practice my English classes so much and my son is also learning English. This is a good place for him because he will have teachers who will read to him, talk with him and help him to learn how to speak with other children. This is important for me because I am getting him ready for preschool.”- Jane, Mum




DANCE CHANCE INCORPORATEDDANCE CHANCE DEVELOPMENT PROJECT The ClubGRANT from NORTHS has made a huge impact on Dance Chance. The grant has given us the capability to hire a Dance Chance manager, allowing us to bring more structure and sustainability to the class. As a result we’ve been able to design and implement a volunteer recruitment strategy that is already yielding results, we’ve been able to develop a robust income generation plan to ensure we can sustain growth and quality over the coming years, and we’ve been able to bring a new level of rigour and quality to our teachers. All of this is setting Dance Chance up to exist well into the future. Dance Chance is an integral part of the week for over 30 dancers and 20 volunteers.

The lack of social and wellbeing programs for people with a disability is staggering, and so it’s vitally important that services like Dance Chance can continue to prosper. A parent of a young dancer had this to say what would happen if Dance Chance wasn’t around anymore. “If Dance Chance didn’t exist my son would be SAD. He loves music and he loves dancing and most of all the socialising.” Parent of Dance Chance dancer

Dance Chance is committed to using the momentum gained from the ClubGRANT to ensure the community continues to grow and develop long into the future.

The ClubGRANT has had a truly significant impact on our organisation, we’re grateful for the support of NORTHS and the whole Northern Sydney community for helping us create such a magical community”. Jess Timmins, President.

“Dance Chance gives me the chance to live out my dreams every week. Not just for me, but for everyone I think.” Dance Chance dancer, aged 32


LEARNING LINKSSPEECH THERAPY AT CAMMERAY PUBLIC SCHOOL Learning Links is an organisation dedicated to helping kids who struggle to learn reach their full potential.

Learning difficulties are common - between 5-15% of children are affected by learning disabilities and difficulties.

“Providing Speech Therapy in the school setting is assisting the school, community, principal, learning support teachers and guiding the teachers on how to assist these targeted children with their specific needs, giving them activity suggestions in class. This is productive for the school as the teachers are more aware of the strategies utilised for the children, they can provide more tailored tools for the children who require further individualised support. This brings teachers more productivity and will facilitate each child to make greater progress in their specific areas of weakness. This may ensure that they will not fall behind in class and have difficulties as time proceeds”. Speech Pathologist, learning Links



YOU HAVE A FRIENDFOOTSTEPS 4 FOOD APPEAL

seagulls were involved in the Footsteps 4 Food appeal and the Can Food Drive in 2016 with You Have a Friend (YHAF).

YHAF is a charity in Tweed Shire who support the homeless and families in need. YHAF provide over 320 meals to homeless and marginalised people on the street a week in Coolangatta and Tweed.

The Footsteps 4 Food appeal raises money through sponsorship for tins of food or cash donations by running, jogging, or walking 5km. The Can Food Drive is raising money or donating tinned food to support the charity.

Di Bailey and Craig Geary (pictured) regularly volunteer through the seagulls Community Support Squad with You Have a Friend, giving up their time on weekends to help out. Whether that be cooking meals, making tea and coffee, driving vans or even just chatting with the people and being supportive.

KIRRIBILLI NEIGHBOURHOOD CENTREWELLBEING FOR MOTHERS WITH POSTNATAL DEPRESSION (PND) “The support of this grant made an extremely valuable and positive difference to the mothers who attended the Wellbeing Program. Those mothers who have or are at risk of PND need support, professional help – all in a safe environment. This grant has enabled us to continue this program and support parents. To bring these mothers together and watch them gain in confidence, support each other and get valuable information from our professional team is extremely rewarding. Most of these mums feel they have nowhere to go, no-one to listen to them and they feel lost as well as socially isolated. To give them a place to come and seek help with others is extremely rewarding for us and for the mums. We could not do this without the ClubGRANTS support. To say that we have made a difference to these mums is an understatement. We are helping them at their most vulnerable – and now able to offer ongoing support.” Jo Harvey, Programs and Marketing, The Kirribilli Centre.

“The New Mums Support Group is a forum to connect with other new mums while discussing issues and challenges related to being a new parent. This group provides an open forum to acquire information, share ideas and reflect on the processes of adjusting to parenthood. It is facilitated by two professional counsellors who monitor the mental health of each member while allowing them to transition smoothly into their new roles. A valuable tool to prevent postnatal depression in a population ‘at risk’.” Liliane Benti – Counsellor

FEEDBACK FROM THE MUMS

“This program has been really helpful and I appreciate it so much – especially at this challenging time in my life.”

“The counsellors were great, lovely people and they gave me the most useful and appropriate information. More programs like this would help save many mums. The support of the other mums was wonderful and it was great to know and learn that I wasn’t the only mum feeling the way I did. A big thank you.”

“A wonderful program – I cannot begin to explain how this has helped. The support has been fantastic and meeting other mums in this environment has also been great.”

“This is the best group I have ever been to.”



PHOENIX HOUSE BUILDING SUSTAINABLE LIVING SKILLS PROGRAM

The ClubGRANT NORTHS provided to Phoenix House had a direct impact on the lives of 16 young people who they put through a program called ‘Transit’ which focuses on Building Living Skills.

The program has a strong education, work skills and living skills component.

On the commencement of the program only one student surveyed achieve high scores in all of the three factors of Hope, Engagement and Wellbeing classifying them as “Ready for the Future”. Following the completion of the program 60% of the students surveyed achieved scores that classified them as “Ready for the Future”.


A comparison of the engagement index from before and after the program shows a dramatic increase in student engagement from 8% to 80%. An analysis of the responses show that low engagement prior to completing the program may have been the result of students not feeling socially accepted, safe or supported by their teachers at school. Following the completion of the program, students who believed that the staff on the program were committed to building their strengths increased to 80%. Also 70% of students felt socially accepted, 90% of students felt safe and 80% of students reported receiving regular praise for their school work.

HOPE INDEX After

Stuck Hopeful

WELL-BEING INDEX After

Struggling Thriving

90%

10%

90%

10%

ENGAGEMENT INDEX After

Not engaged Engaged

80%

20%

More students were hopeful at the end of the program (90%) than at the start (69%). The increase in hope was driven by an increase in the young people’s confidence in their ability to finish high school, get good marks, pursue their goals, solve problems and find a job after finishing school.

While 52% of the students were classified as struggling or suffering prior to the program, this fell to only 10% alongside an increase in thriving students from 46% to 90% following the completion of the program. Students reported being treated with respect (100%), smiling and laughing more (90%), being healthy (90%) and feeling supported by at least one close friend or family member (100%) after completing the program than before it.


HOPE INDEX Before

Discouraged Stuck Hopeful

WELL-BEING INDEX Before

Suffering Struggling Thriving

69%

8%

23%

46%46%

8%

ENGAGEMENT INDEX Before

Not engaged Engaged

92%

8%

TALDUMANDE YOUTH SERVICES LIFE LESSONS EDUCATIONAL PROGRAM

“While every family at Taldumande has their own story, they all share the unwavering support of our team, who are committed to transforming the lives of young people and their families every day.”

The NORTHS grant provided Taldumande with funding to run their Life Lessons Education Programs. These young people within the accommodation services were able to participate in various workshops such as cyber safety and bullying workshops, body image and self-esteem seminars, drugs and alcohol workshops and sessions on dealing with stress management.

By completing these workshops young people could understand the importance of these social issues to enhance their emotional wellbeing.

Taldumande as a youth organisation not only supports vulnerable and at risk young people with accommodation, but provides a streamlined pathway from homelessness and family breakdown to independence and stability


QANTAS PATHFINDERS REVUE 2016 – A JOYOUS OCCASION ALL ROUND From 11th-15th October 2016, NORTHS in Cammeray played host to the Qantas Pathfinders Revue – one of the highlights of Pathfinders’ and many Revue regulars’ calendars. Over five nights, the audience was treated to an evening of laughter and foot tapping performances, created by some very talented Qantas employees who generously donate countless hours of their time. We met Joy, a girl with her head in the clouds and her feet firmly on the ground who, having just left high school, decides to become a Qantas Flight Attendant. After a fun filled interview by the Spice Girls, Joy is instantly thrown into the rigours of Qantas training school and before she knows it, is having a ball flying in her dream job, meeting new and interesting people.

With a near sellout and record raffle ticket sales, the Revue raised a phenomenal $154,773! This formed more than half of Pathfinders’ donation to the children at the Royal Institute for Deaf and Blind Children last year.


XVENTURE EXPERIENCE PRESENTED BY NORTHS “The inaugural XVenture Experience at NORTHS was held on Friday 30 September, 2016 with a total of 28 teams of 6 taking part in this four hour Business Leadership event. Teams came from a wide range of organisations including some heavy hitters such as Westpac, Deloitte and Sydney FC. With participants being given very little information prior to the day about what they will be taking part in, there was a lot of anticipation building up in NORTHS Auditorium. Things became a lot clearer once XVenture Founder and CEO Mike Conway turned on the microphone.

Mike outlined the significance of teamwork and leadership in today’s fast paced business world. He emphasised the importance around Emotional Intelligence (the ability to identify and manage your own emotions and the emotions of others) and how some of the world’s strongest and most respected leaders encompass this quality in their leadership style. After a quick outline of the XVenture rules it was downstairs for a group shot and from that point on it was GAME ON!

The hard work put in by all teams throughout the experience meant we all truly were winners and everybody came out of the day with a more enriched knowledge of leadership and teamwork.” Robert Lopez – Marketing & Promotions NORTHS



BEING RESPONSIBLERESPONSIBLE CONDUCT OF GAMING (RCG) As a registered club, we have an obligation to create a safe and healthy gaming environment for our patrons. For the majority of players gaming machines are a form of recreational activity that is conducted in a setting that complies with application legislation to minimise risk.

The NORTHS Group require staff to have completed a course in Responsible Conduct of Gaming (RCG) in order for them to recognise the risk factors that do exist and the strategies in place to monitor and reduce them.

The BetSafe Responsible Gambling Program was developed in 1998 by responsible gambling expert Paul Symond. BetSafe is considered the leading program of its kind in the world and now has a membership of over 50 clubs in NSW and the ACT. It is a detailed, comprehensive and integrated program that has been proven effective for more than a decade. North Sydney Leagues was one of the founding clubs.

“BetSafe, an initiative of a number of large New South Wales clubs, represents the most thorough and coherent approach of its kind.” The Productivity Commission in its landmark report on Australia’s Gambling Industries.


RESPONSIBLE SERVICE OF ALCOHOL (RSA) As part of our service involves the consumption of alcohol in a licensed venue, we have a responsibility to minimise the risk associated to members, guests, our staff, and our community.

The NORTHS Group is currently involved with three Liquor Accords and through these are involved in the community to foster the responsible consumption of alcohol.

In NSW Liquor accords are voluntary industry-based partnerships working in local communities to introduce practical solutions to liquor-related problems. They reach agreements on ways to improve the operation of licensed venues so that entertainment venues and precincts are safe and enjoyable.

Most liquor accords include members from the local business community, local councils, police, government departments and other community organisations such as the NORTHS Group.


OUR HOLIDAY RESORT SEASIDE HOLIDAY RESORT FINGAL BAY DISCOUNTED ACCOMMODATION FOR MEMBERS

RESORT FACILITIESKids PlaygroundHeated PoolWater ParkSpring-less Trampolines ACCOMMODATION FACILITIESThe resort has 60 self-contained two-bedroom units which can sleep a maximum of six guests. There are also two disabled units and four which have been modified to be wheelchair accessible. Accommodation at Seaside Holiday Resort Fingal Bay is available for bookings all year round, excluding Christmas School Holidays, which are selected by a ballot draw with member clubs.

Members can call NORTHS friendly reception staff for information on this discounted holiday accommodation.

Body Board HireSheltered BBQ areasFree WIFI



FINANCIAL HIGHLIGHTSThe 2016 result is one our employees and members can be proud of. The NORTHS Group assets now exceed $100 million. The total comprehensive income for the year totalled close to $14.9 million with a $6.4 million revaluation of our properties, a $6.0 million gain on amalgamation with the Lane Cove Club and over $2.4 million trading profit for the year. This was achieved in addition to proudly contributing $1.35 million towards football and community support in 2016.

We have been able to focus on operations following renovation works completed in 2015 and improve our operating cash flow from $3.6 million to $7.9 million. This has provided a great platform as we enter 2017 with many projects being planned to improve member amenities and deliver services that are relevant for the communities we operate within.

20 July 2016 saw an exciting addition to the NORTHS Group with Liquor and Gaming NSW formally transferring the Lane Cove Club Ltd liquor licence to the NORTHS Group. As a result, the NORTHS Group now holds a liquor licence in respect of the Lane Cove Club premises and can operate from those premises. The rights, entitlements and assets of Lane Cove Club were also formally transferred to the NORTHS Group.

2017 FOCUSThe NORTHS Group has continued to support a broad range of community activities and charities. We are excited to be hosting the annual Royal Institute of Deaf and Blind Children (RIDBC) fundraiser which if last year is any indication will hopefully see over $150K raised to put toward the wonderful support given to the kids of RIDBC every year across NSW. The event is run over five consecutive nights and open to members to attend.

2017 & 2018 will be exciting periods for the NORTHS Group as we execute on the many plans that are being finalised for council development applications through the first six months of this year.

2016 FINANCIAL STATEMENTS2016

$2015

$

Revenue 52,235,378 51,241,848 Expenses 41,362,499 41,339,097

Operating Profit 10,872,879 9,902,751

Payroll Tax 748,921 756,163 Poker Machine Tax 6,786,720 6,660,406

State Government Taxes 7,535,641 7,416,569

Community Football 785,671 790,353 Community Club Grants 490,449 405,342 Community Other 73,963 92,588

Total Community Support 1,350,083 1,288,283

Profit For The Year 2,477,603 1,197,899

Revaluation increment (decrement) 6,399,715Gain on Amalgamation 6,005,302

Other comprehensive income for the year net of Tax 12,405,017

Total comprehensive income for the year 14,882,620 1,197,899

PRESIDENT AND CEO’S REPORT


PRESIDENT AND CEO’S cont...Whilst we are not ready to highlight all capital works scheduled within this report, a few of the notable projects that are either already in Development Application stage or nearing include:

NORTHSA new club entry within each level of the covered carpark will include a passenger lift for people travelling to the ground floor reception in order to provide a quality arrival experience. Additionally, these works will involve an upgrade of the staff room and locker facilities.

Further planning continues to be finalised for an outdoor area at NORTHS, a car park management system and multiple upgrades to the entertainment areas of our Club.

THE GREENS Works will finally commence mid 2017 with the restructure of the back of house services and infrastructure to remove the temporary cool rooms within the Club carpark, ensure outdoor utilisation and improve the service offering front of house. It is however, very frustrating that for nearly two years, the NORTHS Group has had to successfully fight North Sydney Council to achieve the recent positive result in the Land and Environment Court given the ongoing support The Greens has had from its 22,000 community members.

We wish to thank Bruce Malouf who has operated his very successful Rock n Bowl operations out of The Greens for well over 10 years, keeping members and guests entertained with the fun of bowls. This partnership has now come to an end and means The Greens will run its own fantastic barefoot and traditional bowls operations.

SEAGULLS CLUB2016 was another strong year for the Seagulls Club. The continued support the community has shown for our Club makes many proud and we believe there is great opportunity to continue to invest in great initiatives that will position the Club well into the future. We are currently planning improvements to the lounge and entertainment areas near the Lake View Bar and preparing to transition from the Mangrove restaurant to our internally run food operations for this area. We wish to provide an enormous thank you to the Cenfi family and all their staff over the years. Marco in particular was instrumental in bringing together the Mangrove restaurant both operationally and through the design and construction of the facility at a time when the Club was crying out for direction in food.

THE LANE COVE CLUBMulti stage plans continue to be drawn up for the Lane Cove Club that will re-establish this once thriving little Club back in to its place within the community. The Lane Cove area is experiencing enormous growth and we understand the potential that can be unlocked with this Club as it develops its connection and relevance within the community. Stage one works include but are not limited to: a new lift to four levels within the Club, external façade improvements and various internal improvements that will establish a good base for further works to be executed in the New Year.

As a Board and senior leadership team, we are committed to clarifying our “why” across the NORTHS Group. The focus of how we ensure relevance and purpose for our communities with heavy investment within our communities is our priority. The common thread throughout all four of our clubs is how we have an opportunity to enrich our communities in many ways and sits at the heart of why we operate the way we do. We seek to act responsibly in all activities and understand there must be strong standards of governance, good financial performance and a quality workplace provided where our staff can make a difference in the lives of our members and ultimately the level of community engagement.

We wish to thank all the wonderful people that make up our 325+ employees and our Board of Directors. We enter 2017 full of optimism and look forward to executing the many opportunities ahead for our members and their guests to enjoy in the years to come.

Luke Simmons Mark HolmanChief Executive Officer PresidentNORTHS Group NORTHS Group


INFORMATION ON DIRECTORS

NAME OF DIRECTOR QUALIFICATIONS EXPERIENCE

Mark Holman Chartered Accountant

- President of North Sydney Leagues Club Ltd since December 2010- Vice-President of North Sydney Leagues Club Ltd from May 2008 to

December 2010- Director of North Sydney Leagues Club Ltd for 10 years- Director of Carlson Hotels Asia Pacific Holdings Pty Ltd, which operates the

Radisson chain of hotels throughout Australia- Member of the Audit Committee- Member of the Risk Committee

Willis Salier Lawyer

- Vice-President of North Sydney Leagues Club Ltd since December 2010- Director of North Sydney Leagues Club Ltd for 16 years- Director of private companies, and trustee of charitable foundations and estates,

with combined assets well in excess of $100 million- Chair of the Audit Committee- Chair of the Risk Committee- Life member of North Sydney District Rugby League Football Club

Warren Morris Retired Customs Broker

- Vice-President of North Sydney Leagues Club Ltd from May 2000 to 2008- Director of North Sydney Leagues Club Ltd for 28 years- Life Member of North Sydney Leagues Club Ltd- Secretary of the Sports Council- Delegate and Patron of Metropolitan Leagues Sports Council- Patron of the Bridge, Indoor Bowls, Camera, Joggers’, Snooker, Squash,

Swimming and Tennis Clubs- Co-Patron of the Lawn Bowls Clubs- Delegate to Leagues Clubs Australia- Member of the Audit Committee

DIRECTORS’ REPORTYour directors present their report on North Sydney Leagues Club Limited (“the company”) for the financial year ended 31 December 2016.

DIRECTORSThe following table sets out the Directors of the company at any time during or since year end of the financial year and the number of board meetings held and attended by each director.

NAME OF DIRECTOR CLUB POSITION

TOTAL NUMBER OF DIRECTORS’ MEETINGS ATTENDED

TOTAL NUMBER OF DIRECTORS’ MEETINGS WHILST IN OFFICE

Mark Holman President 13 14Willis A Salier Vice President 12 14Warren F Morris Director 14 14Frere Thompson Director 13 14Terence Keen Director 13 14Perry Lopez Director 13 14Peter Wood Director 13 14Wayne G Bennett (Appointed 28/01/16) Director 14 14

Number of Directors meetings 14


DIRECTORS’ REPORT cont...

INFORMATION ON DIRECTORS

NAME OF DIRECTOR QUALIFICATIONS EXPERIENCE

Frere Thompson Retired Painter

- Director of North Sydney Leagues Club Ltd for 14 years- Director of North Sydney District Rugby League Football Club Ltd- Life Member of North Sydney Leagues Club Ltd- Life Member of North Sydney Junior Rugby League- Life Member of North Sydney District Rugby League Football Club Ltd- Life Member of NSW Rugby League- Delegate to Metropolitan Leagues Sports Council- Committeeman on North Sydney Leagues Club Sports Council- Delegate to New South Wales Rugby League- Delegate to Clubs NSW- Delegate to Leagues Clubs Australia- State Councillor of Australian Legion of Ex-Service Men and Women

Terence KeenCertified Work Place Trainer & Assessor in Hospitality

- Director of North Sydney Leagues Club Ltd for 9 years- QRL game day ground manager for Tweed Heads Seagulls Rugby League Football Club Ltd

Perry Lopez Retired Managing Director

- Director of North Sydney Leagues Club Ltd for 5 years- Chairman of North Sydney Rugby League Football Club since 2012- Director of North Sydney Rugby League Football Club since 2008- Director Central Coast Bears since 2009- Director SME Association since 2011

Peter Wood

Diploma Building & ConstructionCertified Developer of Enterprise Cert IV WHSRegistered Builder NSW/QLD

- Director of North Sydney Leagues Club Ltd for 3 years- Construction Manager- Chair HIA (Qld) Technical committee- Life member of the Bilambil Jets JRLFC

Wayne G Bennett

Electronics and communications Cert 3Qualified single engine jet pilot 1980’s

- Director of North Sydney Leagues Club Ltd for 2 years- Secretary of North Sydney Leagues Social Golf Club for in excess of 15 years- Telstra technical officer- Naval fleet air arm pilot course 81/82- Network engineer Computer sciences Australia- Owner/manager of a data communications company 1984 to present

OPERATING RESULTSThe profit of the company for the financial year after providing for income tax amounted to $2,477,603.

SHORT TERM OBJECTIVESProviding great clubs with a commitment to enriching our communities.


LONG TERM OBJECTIVESTo provide, maintain and grow a profitable and diverse club business operation in a strategic and responsible manner, capitalising on new and expanding market opportunities.

STRATEGY FOR ACHIEVING THE OBJECTIVESThe development of a Strategic Plan that focuses on:- Deepening the relationship with members and our communities- Investing in our people to deliver superior customer service - Maximise utilisation of the company’s infrastructure for the benefit of members- Financial sustainability of the NORTHS Group.

PRINCIPAL ACTIVITIESThe principal activities of the company during the course of the financial year consisted of the conduct and promotion of licensed social and sporting clubs, and the provision of sporting and recreation facilities to members of the company, including the propagation of Rugby League.

HOW THESE ACTIVITIES ASSIST IN ACHIEVING THE OBJECTIVESThe principal activities of the company contributed to achieving the objectives by providing a stable base of operations. This ensured the financial position of the company remained stable and generated funds to meet the demands of the company and maintain high levels of service to members and guests.

PERFORMANCE MEASUREMENT AND KEY PERFORMANCE INDICATORSPerformance is assessed regularly against rolling forecasts, strategic plans and industry benchmarks using various metrics such as financial and non-financial metrics and financial analysis to measure whether strategic initiatives have been effective in achieving company short and long term objectives.

A number of KPI’s are employed by the company in order to measure, monitor and hence improve the club’s performance and to achieve the club objectives through sound financial management.

BOARD COMMITTEES The Board maintains two advisory committees to examine issues relating to audit and risk.

The audit committee consists of Willis Salier, Warren Morris & Mark Holman. The committee meets approximately three times a year with the company auditors to review their findings and reports.

The risk committee consists of Willis Salier, Mark Holman and Luke Simmons. It meets approximately 12 times a year and identifies risks faced by the NORTHS Group and makes proposals to the Board as to how to deal with them.

MEMBERS’ LIMITED LIABILITYThe entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up the constitution states that each member is required to contribute a maximum of $4.00 towards meeting any outstanding obligations of the entity. At 31 December 2016 the total amount that members of the company are liable to contribute if the company is wound up is $257,084.

AUDITOR’S INDEPENDENCE DECLARATIONA copy of the auditor’s independence declaration as required under section 307C of the Corporations Act2001 is set out on page 45.

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

Director:

Mark Holman

Director:

Willis Salier Dated this 18th day of April 2017


AUDITOR’S INDEPENDENCE DECLARATIONUNDER SECTION 307C OF THE CORPORATIONS ACT 2001TO THE DIRECTORS OFNORTH SYDNEY LEAGUES CLUB LIMITED

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2016 there have been:

(i) no contraventions of the auditor independence requirements of 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.

Maher Partners Assurance Pty Limited

Jason Maher

Taren Point

Dated this 18th day of April 2017


The accompanying notes form part of these financial statements.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2016

NOTE 2016$

2015 $

Revenue 2 52,235,378 51,241,84852,235,378 51,241,848

Cost of sales (6,064,123) (6,240,504)Advertising expenses (468,717) (790,440)Auditor’s remuneration 3 (83,075) (76,925)Bad and doubtful debt expenses (4,200) (12,336)Depreciation and amortisation expenses (4,364,497) (3,936,375)Directors’ expenses (85,021) (65,476)Employee benefits expenses (14,923,726) (14,917,806)Unrealised loss on derivatives (203,084) -Other expenses (23,678,051) (24,053,250)Profit before income tax 4 2,360,884 1,148,736Income tax revenue/(expense) 5 116,719 49,163Profit for the year 2,477,603 1,197,899

Other comprehensive income after taxRevaluation increment (decrement) 6,399,715 -Gain on amalgamation 6,005,302 -Other comprehensive income for the year net of tax 12,405,017 -Total comprehensive income for the year 14,882,620 1,197,899Total comprehensive income attributable to members of the entity 14,882,620 1,197,899


The accompanying notes form part of these financial statements.

STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2016

NOTE 2016 $

2015 $

CURRENT ASSETSCash and cash equivalents 6 2,455,753 1,867,995Trade and other receivables 7 242,906 266,525Inventories 8 567,105 625,217Other current assets 9 417,952 478,160TOTAL CURRENT ASSETS 3,683,716 3,237,897

NON-CURRENT ASSETSTrade and other receivables 7 80,000 80,000Financial assets 10 112,500 112,500Property, plant and equipment 11 97,442,110 84,848,103Intangible assets 12 171,636 171,636Deferred tax assets 5 337,658 220,939TOTAL NON-CURRENT ASSETS 98,143,904 85,433,178TOTAL ASSETS 101,827,620 88,671,075

CURRENT LIABILITIESTrade and other payables 13 6,094,484 5,964,357Financial liabilities 14 2,754,518 3,131,558Provisions 15 865,049 746,891Other current liabilities 16 701,432 346,343TOTAL CURRENT LIABILITIES 10,415,483 10,189,149

NON-CURRENT LIABILITIESFinancial liabilities 14 18,001,439 20,111,732Provisions 15 577,964 504,481Tax liabilities 5 1,109,491 1,121,911Other non-current liabilities 16 322,486 225,665TOTAL NON-CURRENT LIABILITIES 20,011,380 21,963,789TOTAL LIABILITIES 30,426,863 32,152,938NET ASSETS 71,400,757 56,518,137

MEMBERS’ EQUITYReserves 17 55,650,783 43,245,766Retained earnings 18 15,749,974 13,272,371TOTAL MEMBERS’ EQUITY 71,400,757 56,518,137


STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2016

NoteRetained earnings

$

Asset Revaluation

Reserve$

Capital Redemption

Reserve$

Amalgamation Reserve

$

Total$

Balance at 1 January 2015 12,074,472 43,082,634 163,132 - 55,320,238

Profit attributable to members 1,197,899 - - - 1,197,899

Balance at 31 December 2015 13,272,371 43,082,634 163,132 - 56,518,137

Profit attributable to members 2,477,603 - - - 2,477,603Other comprehensive income - Movement in reserves 17 - 6,399,715 - 6,005,302 12,405,017

Balance at 31 December 2016 15,749,974 49,482,349 163,132 6,005,302 71,400,757

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2016

2016$

2015$

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 52,676,552 51,298,245Payments to suppliers and employees (43,866,028) (46,576,472)Interest received 10,737 2,358Finance costs paid (873,727) (1,154,084)Net cash provided by operating activities 24 7,947,534 3,570,047

CASH FLOWS FROM INVESTING ACTIVITIESPayments for property, plant and equipment (4,553,487) (8,307,078)Payments for investments - (112,500)Net cash used in investing activities (4,553,487) (8,419,578)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from borrowings 727,731 4,952,311Repayment of borrowings (3,069,556) (726,786)Net cash provided by (used in) financing activities (2,341,825) (4,225,525)

Net increase (decrease) in cash held 1,052,222 (624,006)Cash at beginning of financial year 1,402,272 2,026,278Cash at end of financial year 24 2,454,494 1,402,272


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2016 1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements cover North Sydney Leagues Club Limited as an individual entity. North Sydney Leagues Club Limited is a company limited by guarantee, incorporated and domiciled in Australia.

BASIS OF PREPARATIONThe financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

The financial statements were authorised for issue on 18th April 2017 by the directors of the company.

ACCOUNTING POLICIESComparative Figures

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

BUSINESS COMBINATIONS Club amalgamations are accounted for in accordance with AASB 3 Business Combinations using the acquisition method, with transaction costs directly attributable to the amalgamation forming part of the acquisition costs. This method involves recognising the fair values of the identifiable assets acquired and liabilities assumed. The difference between the above items represents gain on amalgamation in other comprehensive income.

INCOME TAXThe income tax expense for the year is the tax payable on the current year’s taxable income. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred income tax is provided on all temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax assets and liabilities are recognised at the tax rates expected to apply when the assets are recovered or the liabilities are settled. Current and deferred tax is recognised as an expense in the income statement except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity.

Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits will be available, against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation, and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.


NOTES TO THE FINANCIAL STATEMENTS cont...FOR THE YEAR ENDED 31 DECEMBER 2016

INVENTORIESInventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out basis. PROPERTY, PLANT AND EQUIPMENTEach class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation.

PROPERTY

Freehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, but at least triennial, valuations by external independent valuers, less accumulated depreciation for buildings.

In the periods when the freehold land and buildings are not subject to an independent valuation, the directors conduct directors’ valuations to ensure the land and building’s carrying amount is not materially different to the fair value.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are recognised against fair value reserves directly in equity; all other decreases are recognised in profit or loss.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

PLANT AND EQUIPMENT

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses.

In the event the carrying value of plant and equipment is greater than the estimated recoverable amount, the carrying value is written down immediately to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present.

The cost of fixed assets constructed within the company includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.



DEPRECIATION

The depreciation method and useful life used for items of property, plant and equipment (excluding freehold land) reflects the pattern in which their future economic benefits are expected to be consumed by the company. Depreciation commences from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation method and useful life of assets is reviewed annually to ensure they are still appropriate.

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

Class of Fixed Asset Depreciation RateBuildings & Refurbishments 2.0% - 10.0%Plant & Equipment 5.0 - 33.0%

The useful life for each class of depreciable asset are:

Class of Fixed Asset Useful LifeBuildings & Refurbishments 10 - 50 YearsPlant & Equipment 3.0 - 20 Years

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

LEASESLease 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.

FINANCIAL ASSETSFinancial assets are initially recognised on the cost basis, including acquisition charges associated with the financial asset. The carrying amounts of financial assets are reviewed annually by the directors. The recoverable amounts are assessed from the quoted market value for shares in listed companies or the underlying net assets for other non listed corporations. The expected net cash flows from investments have not been discounted to their present value in determining the recoverable amounts, unless otherwise stated.



INTANGIBLESThe club owns licenses in certain holiday units in Fingal bay. The licences are carried at cost less accumulated impairment losses and are tested for impairment annually.

EMPLOYEE BENEFITSProvision 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 have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.

Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred.

CASH AND CASH EQUIVALENTSCash 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.

REVENUERevenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST).

BORROWING COSTSAll borrowing costs are recognised as an expense in the period in which they are incurred.

GOODS AND SERVICES TAX (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense.

TRADE AND OTHER PAYABLESThese amounts represent unpaid liabilities for goods received and services provided to the entity prior to the end of the financial year. These amounts are unsecured and are normally settled within 14 to 45 days.



2016 $

2015$

2 REVENUE

Operating activitiesSale of goods and Gaming revenue 46,222,107 45,728,941Interest Received 10,737 2,358Rendering of services 4,165,270 3,815,518Other revenue 1,837,264 1,695,031Total revenue 52,235,378 51,241,848

3 AUDITOR’S REMUNERATION

Auditor’s RemunerationAudit & Review of Financial Reports 71,900 70,250Other Services 11,175 6,675

83,075 76,925

4 PROFIT

ExpensesFinance CostsInterest Paid 989,600 1,201,267Depreciation of property, plant and equipmentDepreciation - Buildings 1,644,136 1,575,208Depreciation - Plant & Equipment 2,720,361 2,361,167

4,364,497 3,936,375

Bad Debts Written Off 4,200 12,336Total bad and doubtful debts 4,200 12,336


NOTES TO THE FINANCIAL STATEMENTS cont...FOR THE YEAR ENDED 31 DECEMBER 2016 5 INCOME TAX EXPENSE

North Sydney Leagues Club Limited is liable for income tax, based upon income derived from non-members and from investments in outside entities. In view of these special circumstances, it is not appropriate to compare income tax payable with the net profit disclosed in the Statement of Comprehensive Income.

a) INCOME TAX EXPENSE

The Income Tax Assessment Act, 1997 (amended) provides that under the concept of mutuality clubs are only liable for income tax on income derived from non-members and from outside entities.

2016$

2015$

The amount set aside for income tax in the Statement of Comprehensive Incomes has been calculated as follows:

Portion of income attributable to non-members 8,625,116 8,423,522Less: Portion of expenses attributable to non-members (8,279,960) (8,008,636)

345,156 414,886

Add: Other assessable income 1,071,950 1,434,419Less: Other deductible expenses (2,607,047) (2,638,185)Tax loss carried forward (2,731,907) (1,943,027)Net income subject to tax (3,921,848) (2,731,907)

Current income tax applicable to above at 30% - -Increase (decrease) in deferred tax liability - -Decrease (Increase) in deferred tax asset (116,719) (49,163)Over provision in prior year - -Income tax attributable to operating profit (116,719) (49,163)



INCOME TAX EXPENSE cont...2016

$2015

$

b) CURRENT TAX (ASSET)/LIABILITIES

Movements during the year:Balance at beginning of year - -Income tax paid - -

c) DEFERRED TAX ASSETS

The balance comprises temporary differences attributable to amounts recognised in profit or loss

Employee benefits 78,874 68,400Accruals 33,314 3,213Tax losses 214,368 149,326Unrealised gains 11,101 -

337,658 220,939

MovementsOpening balance 220,393 171,776Credited to profit or loss and other comprehensive income 116,719 49,163Closing balance 337,658 220,939

d) DEFERRED TAX LIABILITIES

The balance comprises temporary differences attributable to amounts recognised in OCI

Revaluations of property, plant and equipment 1,109,491 1,121,911

MovementsOpening balance 1,121,911 1,121,911Credited to profit or loss and other comprehensive income (12,420) -Closing balance 1,109,491 1,121,911


2016 $

2015 $

6 CASH AND CASH EQUIVALENTS

CurrentCash on Hand & Cash at Bank 2,455,753 1,867,995

7 TRADE AND OTHER RECEIVABLES

CurrentTrade Debtors 120,649 141,614Other Debtors 122,257 124,911

242,906 266,525

Non-CurrentLoan - Tweed Heads Seagulls RLFC 80,000 80,000

8 INVENTORIES

CurrentAt cost:Stock on Hand - Bar 426,682 414,406Stock on Hand - Other 140,423 210,811

567,105 625,217

9 OTHER NON-FINANCIAL ASSETS

CurrentPrepayments 417,952 478,160

10 FINANCIAL ASSETS

Non-CurrentShares in Unlisted Companies 112,500 112,500



2016 $

2015 $

11 PROPERTY, PLANT AND EQUIPMENT

LAND AND BUILDINGSLand and Buildings at:Independent valuation 85,806,724 69,650,000Refurbishments and Improvements at cost - 12,874,337Less accumulated depreciation - (8,250,123)Total Land and Buildings 85,806,724 74,274,214

PLANT AND EQUIPMENT

Plant and Equipment:At cost 28,920,379 25,816,077Accumulated depreciation (17,512,262) (15,476,358)

11,408,117 10,339,719

Capital Work in Progress 227,269 234,170227,269 234,170

Total Plant and Equipment 11,635,386 10,573,889Total Property, Plant and Equipment 97,442,110 84,848,103


Refer to Note 12 for details of security over property, plant and equipment.

VALUATION

The freehold land and buildings were independently valued at 17 January 2017 by registered valuers, CBRE using a combination of valuation methods. It resulted in a valuation of Land and Building at $85,806,724.



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 & Equipment

$

Capital Work in Progress

$

Total$

Balance at 1 January 2015 70,776,226 8,678,520 1,037,339 80,492,085Additions 5,073,196 4,095,205 234,170 9,402,571Disposals - (37,350) (1,037,339) (1,074,689)Depreciation expense (1,575,208) (2,396,656) - (3,971,864)

Balance at 31 December 2015 74,272,214 10,339,719 234,170 84,848,103

Additions 704,351 3,720,491 - 4,424,842Disposals / transfers - (90,125) (6,901) (97,026)Additions through acquisition of entity 6,085,000 158,393 - 6,243,393Revaluation increments/(decrements) 6,387,295 - - 6,387,295Depreciation expense (1,644,136) (2,720,361) - (4,364,497)Carrying amount at 31 December 2016 85,806,724 11,408,117 227,269 97,442,110

2016 $

2015 $

12 INTANGIBLE ASSETS

Licences 171,636 171,636

171,636 171,636

Licences

The amount represents the costs incurred in acquiring licences at certain holiday units in Fingal Bay. Licences held by the company are considered to be intangible assets with an indefinite life as there is no set term to the contractual agreement. As a result the licences are not subject to amortisation. Instead the licences are tested for impairment annually and are carried at cost less accumulated impairment losses.

13 TRADE AND OTHER PAYABLES

CurrentTrade Creditors 2,026,550 3,646,610Other Creditors 4,067,934 2,317,747

6,094,484 5,964,357



2016 $

2015 $

14 BORROWINGS

CurrentBank Overdraft 1,259 465,723Hire Purchase Liability 142,271 286,085Other Secured Loans 710,718 568,750Commercial Loan Facility 1,600,000 1,600,000Loan - Ebet - 109,404Derivatives - Interest Rate Swaps 203,084 -Hunter Premium Funding 97,186 101,596

2,754,518 3,131,558

Non-CurrentHire Purchase Liability - 142,516Commercial Loan Facility 17,200,000 18,800,000Other Secured Loans 801,439 1,169,216

18,001,439 20,111,732SecurityThe security for the commercial bill facility is:

Registered first mortgage over:- 12 Abbott Street, Cammeray known as North Sydney Leagues Club,- 50 Ridge Street, known as The Greens North Sydney- Gollan Drive, Tweed Heads West known as Seagulls Club

- First Registered Company Charge Number 1190698(Mortgage Debenture) over all the assets and undertakings of the club.

15 PROVISIONS

Provision for Annual Leave 865,049 746,891Provision for Long Service Leave 577,964 504,481Total provisions 1,443,013 1,251,372

Analysis of Total ProvisionsCurrent 865,049 746,891Non-current 577,964 504,481

1,443,013 1,251,372


2016 $

2015 $

16 OTHER LIABILITIES

CurrentIncome In Advance 345,670 47,437Subscriptions In Advance 355,762 298,906

701,432 346,343Non CurrentIncome in Advance 159,801 -Subscriptions In Advance 162,685 225,665

322,486 225,665

17 RESERVES

Asset Revaluation ReserveOpening Balance for the year 43,082,634 43,082,634Revaluation increment (decrement) 6,399,715 -

49,482,349 43,082,634Capital Redemption ReserveOpening Balance for the year 163,132 163,132

Amalgamation ReserveGain on Amalgamation 6,005,302 -

55,650,783 43,245,766

18 RETAINED EARNINGS

Retained earnings at the beginning of the financial year 13,272,371 12,074,472Net profit attributable to members of the company 2,477,603 1,197,899Retained earnings at the end of the financial year 15,749,974 13,272,371



2016 $

2015 $

19 CAPITAL HIRE PURCHASE (HP), FINANCING AND LEASING COMMITMENTS

Finance HP/ Financing / Lease Commitments Payable:Not later than one year 927,817 1,031,342Later than one year but not later than two years 593,177 556,368Later than two years but not later than five years 245,545 387,191Minimum lease payments 1,766,539 1,974,901Less future finance charges (112,111) (109,260)Total HP/lease liability 1,654,428 1,865,641

20 CONTINGENT LIABILITIES

The directors are of the opinion that there are no contingent liabilities.

21 KEY MANAGEMENT PERSONNEL

The totals of remuneration paid to key management personnel (KMP) of the company during the year are as follows:

Key management personnel compensation 1,212,494 1,124,329

22 RELATED PARTY TRANSACTIONS

No director has entered into a material contract with the company since the end of the previous financial year and there were no material contracts involving directors’ interests existing at year end.

23 AMALGAMATION

On 2 December 2016, North Sydney Leagues Club Limited acquired all assets and liabilities of LaneCove Club Limited for nil consideration.

The fair value of the assets and liabilities acquired as at the date of acquisition were:

Assets

Cash and cash equivalents 10,344Receivables and other assets 42,352Property, plant and equipment 6,243,393Total assets 6,296,089



2016 $

2015 $

Liabilities

Payables and other liabilities 104,983Provisions 177,216Income in advance 8,588Total liabilities 290,787

Total identifiable net assets at fair value 6,005,302

24 CASH FLOW INFORMATION

a) Reconciliation of CashCash and cash equivalents consist of cash on hand and balances with banks, and investments in money market instruments. Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts:

Cash on Hand & Cash at Bank 2,455,753 1,867,995Cash at Bank - Bank Overdraft (1,259) (465,723)

2,454,494 1,402,272

b) Reconciliation of net cash provided by operating activities to profit after income taxOperating profit (loss) after income tax 2,477,603 1,197,899

Non-cash flows in profit:(Profit) / Loss on sale of non-current assets - 14,685Depreciation 4,364,497 3,936,375Unrealised gain on derivatives 203,084 -Financing flows in operating profits 115,872 47,183

Changes in assets and liabilities, net of the effects of purchase and disposals of subsidiaries(Increase) Decrease in current inventories 58,112 60,926(Increase) Decrease in current receivables 23,619 14,526(Increase) Decrease in prepayments 60,208 (98,396)(Increase) Decrease in deferred tax assets (116,719) (49,163)Increase (Decrease) in trade creditors (1,620,060) (2,979,498)Increase (Decrease) in other creditors 1,750,187 1,180,704Increase (Decrease) in provisions 191,641 107,360Increase (Decrease) in tax liabilities (12,420) -Increase (Decrease) in other liabilities 451,910 137,446

7,947,534 3,570,047




25 COMPANY DETAILSThe registered office of the company is:

12 Abbott Street, Cammeray, NSW 2062

The principal place of business is:

12 Abbott Street, Cammeray, NSW 2062

The principal activities of the company are that of a Registered Club.

26 DISCLOSURE REQUIREMENTS UNDER SECTION 41J OF THE REGISTERED CLUBS ACTCore and Non Core Property

Section 41J of the Act defines core property as meaning any real property owned or occupied by the company that comprises:-

(a) the defined premises of the company, or(b) any facility provided by the company for use of its members and their guests’ or(c) any other property declared, by resolution passed by a majority of the members present at ageneral meeting of the ordinary members of the company, not to be core property of the company.

Non-core property is defined as meaning any real property owned or occupied by the company that is not core property.

Core property of the company consists of the following premises:- North Sydney Leagues Club at 12 Abbott Street, Cammeray, NSW 2062- The Greens North Sydney at 50 Ridge Street, North Sydney, NSW 2060- Lane Cove Club at 1 Birdwood Avenue, Lane Cove, NSW 2066- Sections of Seagulls Club at Gollan Drive, Tweed Heads West, NSW 2486

The remaining sections of Seagulls Club as voted by members by ordinary resolution at the AnnualGeneral Meetings on 25th May 2009 and 14th May 2012 are considered non-core property.


DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 46 - 65, are in accordance with the Corporations Act 2001:

(a) give a true and fair view of the financial position as at 31 December 2016 and of its performance as represented by the results of its operations and its cash flows for the year ended on that date of the company.

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

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 directors.

Director: Mark Holman

Director: Willis Salier

Dated this 18th day of April 2017


INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF NORTH SYDNEY LEAGUES CLUB LIMITED

REPORT ON THE FINANCIAL REPORTI have audited the accompanying financial report of North Sydney Leagues Club Limited which comprises the statement of financial position as at 31 December 2016 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration.

DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL REPORTThe directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

AUDITOR’S RESPONSIBILITYMy responsibility is to express an opinion on the financial report based on my audit. I conducted my audit in accordance with Australian Auditing Standards. These Auditing Standards require that I comply with ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

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

INDEPENDENCEIn conducting my audit, I have complied with the independence requirements of the Corporations Act 2001.

AUDITOR’S OPINIONIn my opinion:

(a) the financial report of North Sydney Leagues Club Limited 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 2016 and of its performance for

the year ended on that date; and (ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations

Regulations 2001.

Maher Partners Assurance Pty Limited

Jason MaherTaren PointDated this 18th day of April 2017


NOTES

12 Abbott Street.Cammeray NSW 2062

Tel. 02 9245 3000Fax: 02 9955 1543

Email: [email protected]: norths.com.au

ABN 92 000 147 544

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