Concise Financial Report

30 June, 2009

Contents

Directors Report                                                                                       1

Auditor’s Independence Declaration under

s307 of the Corporations Act 2001                                                       4

Discussion and Analysis of Financial Statements                            5

Income Statement                                                                                    7

Balance Sheet                                                                                          8

Statement of Changes in Equity                                                           9

Cash Flow Statement                                                                             10

Notes to the Financial Statements                                                       11

Directors’ Declaration                                                                             13

Independent Audit Report                                                                     14

DIRECTORS’ REPORT

Your Directors submit the Financial Accounts of the Company for the year ended June 30, 2009 and report as follows:

Directors

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

Experience on the Board of Directors is shown as continuity of service since last elected.

General Manager

The following persons held the position of General manger and Company Secretary during the year ended June 30, 2009

David Cunningham resigned as General Manager on April 30, 2009.  He was replaced by Mr Tom Gallagher, who has been an employee of the Club since November 2002.

Activities

The principal activity of the Company was a Licensed Social Club in the promotion of the Gaelic cultural, social and sporting activities. During the year there was no significant change in the activities.

Membership

The Club is a Company Limited by Guarantee and without a Share Capital and the liability of members of the Licensed Club is limited (whilst a member or within one year afterwards) to an amount not exceeding fifty ($50.00) dollars towards the payments of debts and liabilities in the event of winding up.

The number of members as at June 30 2009 was:

Foundation/Permanent:                                   587
Full Members:                                                         565

Social:                                                             1825

DIRECTORS’ REPORT (cont.)

Results

The Net Operating Profit for the year after providing for depreciation on non-current assets and income tax amounted to $91,590 (2008: Loss - $117,420).

The Club showed a marked improvement in its trading performance, particularly in the second six months of the year ended June 30, 2009.  Careful management of expenditure has supported increased patronage by both members and guests.

Movement in significant items of revenue and expenses are as follows:

State Of Affairs

In the opinion of the Directors there were no significant changes in the state of affairs of the Company that occurred during the Financial Year under review not otherwise disclosed in this Report or the Accounts.

Events Subsequent To Balance Date

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company subsequent financial years.

Likely Developments and Results

The Directors do not anticipate any particular developments in the operations of the Company, which will affect the results in subsequent years.

DIRECTORS’ REPORT (cont.)

Directors’ Interest

Since the end of the previous financial year no Director of the Company has received or become entitled to receive a benefit (other than a benefit included in the aggregate amount of emoluments received or receivable by Directors shown in the accounts) by reason of a contract made by the Company or a related corporation with a Director or with a firm of which the Director is a Member, or with an entity in which the Director has a substantial interest.

Directors’ Indemnity

Directors’ indemnity premiums have been provided for and paid during the year for Directors’ and Officers’ Liability. The Insurance is in respect of legal liability for damages and legal costs arising from claims made by reason of any omissions or acts (other than dishonesty) by them, whilst acting in their individual or collective capacity as Directors or Officers.

The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the Directors’ and Officers Liability and legal expenses insurance contracts, as such disclosure is prohibited under the terms of the contracts.

Auditor’s Independence

The Auditor’s Independence Declaration for the year ended June 30 2009 has been received as shown on page 4 of the Directors’ Report.

This report is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the Directors by:

dated at Kingswood this 24^th day of August 2009.

Information On Auditor’s Independence Declaration Under Section 307c Of The Corporations Act 2001

We declare that, to the best of our knowledge and belief, during the year ended June 30 2009 there has been:

i)                    No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit, and

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

ROSS FOWLER & CO
CHARTERED ACCOUNTANTS

R.B. Fowler
Dated August 24^th, 2009

Liability limited by a scheme approved under Professional Standards Legislation

DISCUSSION AND ANALYSIS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2009

The concise financial report is an extract from the full financial report for the year ended June 30, 2008.  The financial statements and disclosures in the concise financial report have been derived from the June 30, 2009 full financial report of Penrith Gaels Cultural and Sporting Association Limited.

A copy of the full financial report and auditor’s report is available, free of charge, upon request from the Club.  A copy maybe requested by contacting the Club and can be collected from the Club’s premises at Corner Glebe Place and Phillip Street, Kingswood NSW 2747.

The discussion and analysis is provided to assist members in understanding the concise financial report.  The discussion and analysis is based on the full financial report of Penrith Gaels Cultural and Sporting Association Limited for the year ended June 30, 2009.

INCOME STATEMENT

The operating result for the year was a profit after income tax of $91,590 (2008- Loss $118,339).

Total revenue increased by $371,363 (12.5%) to $3,347,852.  The increase was the result of the marked improvement in poker machine clearances, which rose by $323,708 (18.4%).  The directors believe that the increase was due to a number of separate factors:

• a general recovery from the smoking bans implemented in July 2007;
• the improvements in the Club’s gaming facilities over the last eighteen months – including the purchase of poker machine licenses; and
  • improved economic confidence in the second six months of the year.

The increased gaming revenue was supported by a smaller increase (12.8%) in bar and function sales to a total of $979,795.

Notwithstanding these increased revenues conditions remained tough for the Club. 

a).    Gaming taxes rose by some $66,174 to $326,883 for the year ended June 30, 2009. 

b).    The directors consciously decided not to pass on all price rises at the bar and hence gross profit margin fell to just 53.4% (2008 – 58.99%).

c).    Depreciation and amortisation was some $227,760 (2008 – 193,099), an increased charge of $ 34,891 (18.1%).

Notwithstanding these increases administrative expenditure fell buy some $60,000 to $1,258,000.  The major factor for the reduction was the lower interest charge faced by the Club, which fell by some $34,743 to $131,164 - a decline of some 20.9%.

DISCUSSION AND ANALYSIS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED JUNE 30, 2009 (cont.)

BALANCE SHEET

The directors believed the year in question was one of consolidation; whereby monies from operations were expended to both improve the members’ amenities and the Club’s operational facilities, with the completion of a new staff room and storeroom; and to reduce debt.

The Club also used the opportunity to repay some of its mortgage borrowings and as a consequence total liabilities fell by $120,669 (5.6%).  Notwithstanding the repayment of debt the Club’s financial borrowings due to be repaid within twelve months as at June 30, 2009 is some $248,411.  This represents a further significant burden on the Club’s finances but represents slightly more than a third of the Club’s available cash reserves of $725,664 as at June 30, 2009.

The repayment of debt and fixed additions meant that while total assets fell by $29,500 to $5,019,834 overall the Club’s net assets rose to $2,960,436, an increase of $91,590 (3.2%).

STATEMENT OF CASH FLOWS

Cash flows from operations rose by $195,317 to $350,467.

As outlined above the majority of these funds from operations were expended on new fixed asset additions $154,919 and the repayment of borrowings $145,128.

As a consequence the Club’s net cash reserves improved by $50,420 to $725,664.

statement of changes in equity

Total equity increase by $91,590 (3.2%) to $2,960,436.  The increase was due entirely to the profit from operations for the year ended June 30, 2009.

INCOME STATEMENT
FOR THE YEAR ENDED JUNE 30, 2009

The accompanying Notes form part of these Financial Statements.

BALANCE SHEET
as at JUNE 30, 2009

The accompanying Notes form part of these Financial Statements

 STATEMENT OF CHANGES IN MEMBERS FUNDS
For The Year Ended JUNE 30, 2009

The accompanying Notes form part of these Financial Statements.

Statement of Cash Flows

For The Year Ended June 30, 2009

The accompanying Notes form part of these Financial Statements.

NOTES TO AND FORMING PART OF THE ACCOUNTS

FOR THE YEAR ENDED JUNE 30, 2009

NOTE 1. STATEMENT OF ACCOUNTING POLICIES

The concise financial report is an extract from the general purpose financial report for the year ended June 30, 2009.  The concise financial report has been prepared in accordance with Accounting Standard 1039: Concise Financial Reports and the Corporations Act 2001.

The financial statements, specific disclosures and other information included in the concise financial report are derived from and are consistent with the full financial report of Penrith Gaels Cultural and Sporting Association Limited.  The concise financial report cannot be expected to provide as detailed an understanding of the financial performance, financial position and financing and investing activities of Penrith Gaels Cultural and Sporting Association Limited as the full financial report.

The financial report of Penrith Gaels Cultural and Sporting Association Limited as an individual entity complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety. 

The presentation currency used in the concise financial report is Australian dollars.

NOTE 3 CASH FLOW information

a) Reconciliation Of Net Cash From Operations

With Operating Profit/(Loss) After Income Tax

b) Credit Standby Arrangements and Loan Facilities

The Club has a credit standby facility with regard to a NAB Business Credit Card of $5,000 (2008- $5,000).

NOTE 4 SEGMENT REPORTING

The Club operates predominantly in one business and geographical segment being in Kingswood, New South Wales.  It provides amenities consistent with those of a Licensed Club to its members and visitors.

NOTE 5 EVENTS AFTER BALANCE SHEET DATE

There are no matters or circumstances that have arisen since the end of the financial year, which significantly affected or may significantly affect the operations of the Club, the results of those operations or the state of affairs of the Club in future financial years.

DIRECTORS’ DECLARATION

The Directors of the company declare that:

1. The financial statements and notes, as set out on Income Statement, Balance Sheet, Statement of Cash Flows, Statement of Changes in Equity and Discussion and Analysis and Notes to the financial statements are in accordance with the Corporations Act 2001; and

a)      comply with Accounting Standards and the Corporations Act 2001; and

b)      give a true and fair view of the financial position as at June 30, 2009 and performance for the year ended on that date of the Company.

2.   In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due and payable.

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

John GRIEVE
Director

Director

Dated at Kingswood this 24th day of August 2009.

AUDITOR’S REPORT TO THE MEMBERS

Report on the Financial Report

We have audited the concise financial report of Penrith Gaels Cultural and Sporting Association Limited for the financial year ended June 30, 2009, comprising the Directors Declaration, Income Statement, Balance Sheet, Statement of Cash Flows, Statement of Changes in Equity and Discussion and Analysis and Notes to the financial statements.  The directors of the Company are responsible for the preparation and presentation of the concise financial report.

Auditor’s Responsibility

We have conducted an independent audit of this concise financial report in order to express an opinion on it to the members of the Company.  Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonable assurance as to whether the concise financial report is free of material misstatement. The nature of our audit is influenced by factors such as the use of professional judgement, selective testing, the inherent limitations of internal controls and the availability of persuasive rather than conclusive evidence. Therefore an audit cannot guarantee that all material misstatements have been detected.

We also performed an independent audit of the full financial report of the Club for the financial year ended June 30, 2009. Our audit report on the full financial report was signed on 24th August 2009, and was not subject to any qualification.

In conducting our audit of the concise financial report, we performed procedures to assess whether in all material respects the concise financial report is presented fairly in accordance with Australian Accounting Standards AASB 1039: Concise Financial Reports.

We formed our audit opinion on the basis of these procedures, which included:

• testing that the information included in the concise financial report is consistent with the information in the full financial report, and

• examining, on a test basis, information to provide evidence supporting the amounts, discussion and analysis, and other disclosures in the concise financial report, which were not directly derived from the full financial report.

When this audit report is included in an Annual Report, our procedures include reading the other information in the Annual Report to determine whether it contains any material inconsistencies with the financial report.

Independence

In conducting our audit, we have followed the applicable independence requirements of Australian professional and ethical pronouncements and the Corporations Act 2001. 

We confirm that the independence declaration required by ASIC Class Order 05/83 and provided to the directors of Penrith Gaels Cultural and Sporting Association Limited as set out in the financial report has not changed as at the date of providing our audit opinion.

Audit opinion

In our opinion, the concise financial report of Penrith Gaels Cultural and Sporting Association Limited complies with Accounting Standard AASB 1039 “Concise Financial Reports”.

ROSS FOWLER & CO

CHARTERED ACCOUNTANTS

R.B. Fowler                                                                            Dated:  24^th August 2009

Address: 11 Tindale Street Penrith NSW 2750

Liability limited by a scheme approved under Professional Standards Legislation