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BONDI JUNCTION-WAVERLEY RSL SUB-BRANCH CLUB LIMITED ABN 87 001 057 594

Contents

Minutes of the Annual General Meeting held at Club Bondi Junction on Sunday 20th March 2016 ............................................1

Notice of Annual General Meeting .....................................................................17

President’s Report ............................................................................................20

Treasurer’s Report ............................................................................................22

General Manager’s Report ................................................................................25

Directors’ Report ..............................................................................................26

Auditors Independent Declaration ......................................................................29

Directors’ Declaration .......................................................................................30

Independent Audit Report to the Members of Bondi Junction-Waverly Sub-Branch Limited ..................................................31

Statement of Profit or Loss ...............................................................................33

Statement of Comprehensive Income ................................................................33

Statement of Change in Equity ..........................................................................34

Statement of Financial Position .........................................................................35

Notes to the Financial Statement .......................................................................36

Statement of Cash Flows ..................................................................................51

Indoor Bowls Report .........................................................................................53

Amateur Swimming Club Report .......................................................................54

Darts Club Report ............................................................................................55

Lawn Bowls Report ..........................................................................................56

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MINUTES OF THE ANNUAL GENERAL MEETING OF THE BONDI JUNCTION

WAVERLEY RSL SUB BRANCH CLUB LTD – TRADING AS CLUB BONDI JUNCTION –

HELD AT THE CLUB PREMISES, BONDI JUNCTION ON SUNDAY 20TH MARCH 2016

MEETING OPENED:Club President, Bill Harrigan, opened the meeting at 11:28am, apologising for the delay in the scheduled starting time owing to the increased number of people in attendance. The President then asked everyone to stand and face the eternal flame for the Ode of Remembrance, asking Sub Branch President, Kevin Hagan, to recite the Ode. The President introduced the executive and members of the Board of Directors, as well as the Club’s General Manager, Peter Swaby. A warm welcome was then extended to special guests invited to provide information, if necessary: Mr. Phil Jones, the Club’s Auditor from W.W. Vick and Co; Mr. Bruce Gotterson, Solicitor from Pigott Stinson; Mr. Terry Healy, the Club’s Returning Officer; and Mr. Bill Stinson, acting at the moment as Project Manager on any possible development that may occur in the future which is only at discussion stage currently. The President reiterated that these special guests were here to answer any questions arising which may be outside the scope of the Board. ATTENDANCE:As per attendance sheets. There were 97 members present.APOLOGIES:The Chairman called for apologies and the following were received:Mary Buchan, Peggy Watson, Joan Boulton, John Boulton, James Dean, James French, Patrick Fitzsimons, Paul Kane, Angelina Kane , Frank Galvin, Peter Ashton, Paul Lindsay, Edward Shaw and Rita Shaw. CARRIEDMINUTES:Moved C.Dent, seconded C. Santa Maria that the minutes of the previous A.G.M, held on the 22nd March 2015 be taken as read. CARRIEDBUSINESS ARISING:There was no business arising.ADOPTION:Moved V.Buchan, seconded G.Goodieson that the Report of Directors, the audited Balance sheet and the Financial Statements for the year ended 31st December 2015 be adopted. CARRIED PRESIDENT’S REPORT:The President asked that his report be taken as read from the Annual Report for 2015, adding that he had made particular mention of the possibility of a future development of the Club.

BONDI JUNCTION-WAVERLEY RSL SUB-BRANCH CLUB LIMITED

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GENERAL MANAGER’S REPORT:The General Manager requested that his report from the Annual Report 2015 be tabled as read.TREASURER’S REPORT:Club Treasurer, Mark Peoples, referred to his report in the Annual Report for 2015, emphasising the imperative need for development in order to secure the Club’s future viability. The trend towards reduced trading would suggest that the Club will be unable to sustain a profitable outcome indefinitely, necessitating the need to consider the Club’s future financial predicament and to pursue a redevelopment course of action. The Treasurer then asked the floor if there were any questions pertaining to his report. There were no questions from the floor.REPORT OF DIRECTORS, AUDITED BALANCE SHEET AND FINANCIAL STATEMENTS:There were no questions pertaining to the reports presented by Club auditor, Phil Jones. Moved V.Buchan, seconded C. Santa Maria that the Audited Balance Sheet and Financial Statements for the year ended 31st December 2015 be adopted.All in favour CARRIEDADOPTION:Moved V.Buchan, seconded G. Goodieson that all reports be adopted.All in favour CARRIEDSUSPENSION OF STANDING ORDERS:Moved V. Buchan, seconded S. Welman that the standing orders be suspended for the declaration of the poll in accordance with the declaration of the Returning Officer, Terry Healy. The Returning Officer commenced proceedings by declaring all positions vacant. He then announced the result of the election which was as follows:PRESIDENT: No. of votes HARRIGAN, William 207 HAGAN, Kevin 136 INFORMAL 6I declare Bill Harrigan elected.VICE PRESIDENT: HAGAN, Kevin unopposedI declare Kevin Hagan elected.TREASURER: PEOPLES, Mark unopposedI declare Mark Peoples elected. DIRECTORS (5) No. of votesCUNNINGHAM, Craig 217 LINDSAY, Erle 239GOODIESON, Greg 211KEATING, Phyllis 109WATSON, Peg 195BLAIMSCHEIN, Michael 105


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SHERIDAN, Denis 190AHRENS, Anne 124 BELL, Andy 175TOTAL 1565 INFORMAL 2I declare, in descending order, Erle Lindsay, Craig Cunningham, Greg Goodieson, Peg Watson and Denis Sheridan elected. RESUMPTION OF STANDING ORDERS:Moved V. Buchan, seconded S. Welman that standing orders be resumed. CARRIEDPATRONS:Moved J. Harrigan, seconded C. Santa Maria that the same Patrons as last year be invited to be the Club’s patrons until the next A.G.M. They include: Messrs E. Page, BE COMM; Mr. P King; the Prime Minister of Australia and member for Wentworth, Mr. Malcolm Turnball; and Mrs Gabriel Upton, Attorney General of New South Wales and Member for Vaucluse.All in favour CARRIEDHONORARY MEMBERS:Moved J. Harrigan, seconded D. Gabriel that the C.E.O of the War Memorial Hospital, Mr. Jed Hyde, be awarded Honorary Membership of the Club for his service in consistently providing buses for the Club’s Commemorative Services each year.All in favour CARRIEDAUDITORS:Moved V.Buchan, seconded P.Moores that Mr. Phil Jones of W.W.Vick and Co be retained as the Club’s Auditor. All in favour CARRIEDSOLICITORS:Moved G.Goodieson, seconded V.Buchan that the Club’s solicitor, Mark Peoples, be reappointed.All in favour CARRIEDRESOLUTIONS:The Chairman asked the members to consider and, if thought fit, to pass the following Resolutions which were proposed as Ordinary Resolutions. Club General Manager, Peter Swaby, read the first three Resolutions to the members. FIRST ORDINARY RESOLUTIONThat pursuant to the Registered Clubs Act:a) The members hereby approve and agree to expenditure by the Club in a sum

not exceeding $40,000 until the next Annual General Meeting for the Club for the following activities of Directors:(i) The reasonable cost of a meal and beverage for each Director

immediately before or after a Board or Committee Meeting on the day of that Meeting when that Meeting corresponds with a normal meal time Reasonable expenses incurred by Directors in travelling to and from


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Directors meetings or other duly constituted Committee Meetings as approved by the Board from time to time on a production of invoices, receipts or other proper documentary evidence of such expenditure.

(ii) Reasonable travel, accommodation and other out of pocket expenses incurred by Directors in relation to such other duties including attendance at official functions on behalf of the Club in New South Wales and interstate, entertainment of special guests to the Club and promotional activities performed by Directors provided all such activities and expenses relating thereto are approved by the Board on production of receipts, invoices and other paper documentary evidence

(iii) An Annual President’s Function with the person’s in attendance to comprise the Directors and other persons as chosen by the President

(iv) Expenses involved in sponsorship of Affiliated Clubs. Annual Community Leaders Dinner Expense. Presentation to Members or other persons acknowledging services deemed by the Directors as being of benefit to the Club and/or Community.

b) The Members acknowledge the benefits in paragraph (a) above are not available to members generally but only for those who are Directors of the Club.

Moved A.Bell, seconded G.Goodieson that this resolution be passed.All in favour by show of hands CARRIED SECOND ORDINARY RESOLUTION That pursuant to the Registered Clubs Act:a) The members hereby approve and agree to expenditure by the Club in a sum

not exceeding $12,000 for the professional development and education of Directors until the next Annual General Meeting being:(i) The reasonable cost of Directors attending the Clubs New South Wales

Annual General Meeting(ii) The reasonable cost of Directors attending seminars, lectures, trade

displays and other similar events as may be determined by the Board from time to time

(iii) The reasonable cost of Directors attending other Registered Clubs for the purpose of viewing and assessing their facilities and methods of operation provided such attendances are approved by the Board as being necessary for the betterment of the Club


Moved C.Dent, seconded A.Bell that this resolution be passed.All in favour by show of hands CARRIEDTHIRD ORDINARY RESOLUTIONThat pursuant to the Registered Clubs Act, the Members hereby approve and agree to expenditure by the Club of the following benefits for Members which are not offered equally to all full Members of the Club:


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a) That the Board of the Club makes such donations as it considers fit to each of the duly constituted social and sporting Sub-Clubs within the Club having regard to the needs and expenditure for those Sub-Clubs and without being required to maintain equality of expenditure between such Sub-Clubs.

b) That the President continues to receive an out of pocket expenses in the sum of $3,000 until the next Annual General Meeting.

c) That the Honorary Treasurer continues to receive an out of pocket expenses in the sum of $2,000 until the next Annual General Meeting.

d) That each Director continues to receive an out of pocket expenses in the sum of $1,000 until the next Annual General Meeting.

e) That Director’s each receive one (1) Christmas hamper not exceeding the value of $200 per hamper.

Moved S.Welman, seconded C. Santa Maria that this resolution be passed.All in favour by show of hands CARRIEDNOTE TO MEMBERSThese notes are to be read in conjunction with the above proposed Ordinary Resolutions:1st) The First Resolution is to have the members at the Annual General Meeting

approve an amount not greater than $40,000 for the expenditure by the Club in relation to duties performed by the Club’s Directors.

2nd) The Second Resolution is to have the Members at the Annual General Meeting approve an amount no greater than $12,000 for the expenditure by the Club for Directors to attend seminars, lectures, trade displays and other similar events including the Clubs New South Wales Annual General Meeting and to visit other Clubs to enable the Club’s Governing body to be kept abreast of current trends and developments which may have significant bearing on the nature and way in which the Club conducts its business.

3rd) The Third Resolution is to approve various benefits that have traditionally been provided in the Club and which, following certain amendments to the Registered Clubs Act in 1993, should be approved by the Members at this year’s Annual General Meeting.

4th) The amounts referred to in the three (3) resolutions have been based on the amounts approved by the Members at last year’s Annual General Meeting.

5th) Each of the resolutions must be passed as a whole and cannot be amended by motions from the floor or divided into two or more separate resolutions.

6th) To be passed, each ordinary resolution must receive votes in its favour from not less than a simple majority of those members, who being entitled to do so, vote in person at the meeting.

FOURTH RESOLUTION (Read by President, Bill Harrigan)Prior to addressing this Ordinary Resolution, the Chairman invited newly elected directors, Craig Cunningham and Greg Goodieson to the executive table, congratulating them on their election and thanking outgoing Directors, Andy Bell and Raymond Wildman for their efforts over the past two years.The President then proceeded to read the notes and procedures pertaining to the


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Fourth Ordinary Resolution as follows:FOURTH ORDINARY RESOLUTIONFor the purposes of section 41J (1) of the Registered Clubs Act, the members hereby declare that:

(a) the following land shall be non-core property of the Club:

all of the Club’s land located in Bondi Junction at 84 Ebley Street (folio identifier 1/735713), 36 Bronte Road (folio identifier A/161158), 38 Bronte Road (folio identifier 1/226425) and 40-42 Bronte Road (folio identifier 2-3/226425) (“the Club’s land”); and

all of the land legally owned on behalf of the beneficial owner, Bondi Junction-Waverley Sub-Branch of the RSL by William Thomas Harrigan, Noel Mayes and Andrew Bell as joint tenants) upon which the Club currently occupies pursuant to Lease AH22498 as part of its licensed premises at 1-9 Gray Street and 28-34 Bronte Road Bondi Junction (folio identifier 1/621398) (“the Sub-Branch land”); and

Property being 19 The Parade, North Haven (lots 1, 2 and 3 – SP21414).(b) The declaration made in paragraph (a) will remain valid and continue to be

legally binding notwithstanding the purchase of the Sub-Branch land by the Club.

NOTES TO MEMBERS ON THE ORDINARY RESOLUTION

1) As members are aware the Club has for some time now been looking at the possible development of the Club’s site in Bondi Junction.

2) Before the Club can develop the site it needs to acquire the Sub-Branch land. Any development proposal will involve the Club acquiring the Sub-Branch land and entering into a venture with a developer, yet to be selected, to undertake a mixed use residential and commercial development on the Club’s land and the Sub Branch land, together with the redevelopment of the Club premises (proposed development).

3) In order to proceed with this proposed development the Club requires members to pass the above Ordinary Resolution.

4) The Ordinary Resolution proposes to have the members convert the Club’s land and the Sub-Branch land which is currently core property of the Club to non-core property of the Club for the purposes of section 41J of the Registered Clubs Act (“Act”).

Core and non-core property5) The Act provides that all real property (including all land and buildings owned

or occupied by the Club) is classified as either “core” or “non-core” property.6) “Core property” is defined in Section 41J of the Act as any real property owned

or occupied by the Club that comprises:(a) the licensed premises of the Club;(b) any facility provided by the Club for the use of Club members and their

guests; and


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(c) any other property of the Club which is declared by the members to be core property

but does not include any land which is declared by the members to be non-core property.

As indicated above, the Club’s land and Sub Branch’s land is “core property” of the Club.7) Non-core property is any land which is not core property. The Act allows

members, at a general meeting, to declare core property as non-core property and/or non-core property as core property.

8) The major difference between core property and non-core property is the restrictions imposed by the Act on the disposal of core property (which includes the sale of core property). In this regard:(a) Unless one of the exemptions applies, core property cannot be

“disposed” (sold) by the Club unless:(i) It has been valued by a registered valuer; and(ii) The disposal has been approved at a general meeting of the

ordinary members of the Club (by majority vote);(iii) If the disposal is by way of sale, the sale must be by way of open

tender or public auction conducted by an independent real estate agent or auctioneer.

(b) Non-core property can be disposed of (sold) without having to follow the procedure set out in paragraph (a) above. That is, non-core property can be disposed in any way that the Board determines appropriate such as by private treaty but in particular does not require the approval of the members of the Club.

9) The proposed development will involve the construction of residential apartments and commercial suites, which the Club intends to sell “off the plan” once constructed. The Club does not propose to sell the residential apartments and commercial suites by way of public auction or open tender.

10) Accordingly, to enable the marketing and sale of the developed product (comprising the residential apartments and commercial suites) “off the plan”, the Board recommends that members pass the Ordinary Resolution.

Effect of Ordinary Resolution11) If the Ordinary Resolution is passed, the Club’s land and the Sub-Branch land

will be non-core property and the Sub Branch land will remain as non-core property after the Club has purchased it from the Sub Branch.

12) This means that after the Club has purchased the Sub Branch land the Board will have the authority to sell the residential apartments and sell or lease the commercial suites created under the proposed development without having to obtain members approval every time a residential apartment is to be sold or a commercial suite is to be sold or leased and without being restricted by having to sell by public auction or open tender.


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Background13) The Board has been considering options available to the Club in relation to the

possible development of the Club’s land and Sub Branch’s land over a number of years and in particular over the last six (6) to twelve (12) months.

14) The Club does not have the funds to acquire the Sub Branch’s land and build a new club house, undertake the significant building works that would be required to renovate the current premises or develop the land to provide additional cash reserves for the Club to secure its future.

15) Accordingly, in the opinion of the Board, the only option for the Club is to enter into an agreement with a third party developer (“TPD”) to achieve these goals.

16) A special corporate governance team will be created to manage and oversee the proposed development to ensure that the Club acts correctly and is transparent.

17) The Board will conduct a limited tender process for the appointment of an experienced project manager/development team to assist the Board through the process.

18) A development committee will also be established, consisting of 3 board members and the CEO, to take recommendations to the Board for approval.

19) The Club has received various development proposals from interested parties experienced in redevelopment and these have been considered by the Club.

20) The Club reviewed the development proposals which were lodged and is now considering those proposals.

Approval from members21) As the Club’s land and the Sub Branch land are core property, they cannot be

disposed (sold) without the approval of members or unless members declare the Club’s land and Sub Branch’s land to be non-core property.

22) For the above reason, the Board is seeking the approval of members to have the land declared to be non-core property.

Why is the Board proceeding in this way?23) The Board has considered the different methods under the Act and Regulations

for the proposed development and sale of the land.24) The Board has determined that the most appropriate manner in which

to proceed is to have the Club’s land and Sub Branch’s land declared as “non-core property” of the Club.

25) This will provide the Board with greater flexibility in relation to the proposed development and sale of the land because the Club will not be required to comply with the onerous requirements of section 41J of the Act.

26) The Board appreciates that the proposed development and sale of land is a significant matter for members and the Club generally. For this reason, the Board also wishes for members to consider and approve the proposed development before the Club enters into an agreement with a TPD.

27) Additionally, the Board wishes to have the necessary member approvals in place before the Club incurs considerable costs and commits significant time and resources on the proposed development. The Board understands


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that TPD’s will also require such approvals to be in place before they incur considerable costs on the proposed development.

28) If the resolution is passed, the Club will commence negotiating the terms of a Joint Venture Agreement with the TPD.

Procedural matters29) Under Section 41J of the Act all members of the Club, apart from Provisional,

Honorary and Temporary members are eligible to vote. 30) To be passed, the Ordinary Resolution requires votes from a simple majority

(50%+1) of those members who, being eligible to do so vote on the resolution at the meeting.

31) Under the Act, members who are employees of the Club are not eligible to vote, and proxy voting is prohibited.

32) The Board unanimously recommends to members that they vote in favour of the Ordinary Resolution.

After The President read the above he handed over to Mr. Bruce Gotterson, solicitor from Pigott Stinson, to clarify and explain to the members present the purpose of changing the land the Club is built upon from core to non-core property. As a starting point, Mr. Gotterson defined core property as the land upon which the Club is built, as distinct from non-core property i.e. investment property e.g. the units at North Haven. The significance of this distinction is that, with core property, as defined under the Registered Club’s Act, approval must be attained from the members before such property can be sold. In the event that the Club should seek future redevelopment, currently under consideration, this would prove impractical for the Board in making an agreement with a joint third party developer, as the sale of core property must receive approval from the members and can only be sold by public tender. This would prove an impractical restriction, inhibiting the Club from moving forward. In summation, the purpose of the Resolution is to declare the land that the Club is built on change from core to non-core property to assist efficient possible future development.

The President then invited members present at the meeting to speak for or against the motion. While no one spoke against the resolution, R. Duarte asked how much of the existing land would be occupied by the proposed new Club; in other words, how many square meters? President’s Response: The desired floor size would be 2200 square meters. However, at this point in time, this remains undetermined. The Chairman instructed R.Duarte that he was moving beyond the scope of the Resolution; that issues such as size of the occupied Club and car space etc are, at present, unknown entities and will be determined at a subsequent date. He informed the member that the purpose of the Resolution is to provide approval to assist the Board of Management in achieving the best possible deal for the members. Moved P. Moores, seconded T. Wilson that this Ordinary Resolution be passed. All in favour by show of hands. CARRIED


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FIFTH ORDINARY RESOLUTION (Read by Bill Harrigan)That the board of the Bondi Junction Waverley RSL sub-branch Club Limited for the time being is authorised to sell at current market value the property being 19 The Parade, North Haven (lots 1,2 and 3 – SP21414).Having read the notes and procedures pertaining to this Ordinary Resolution, the President informed the meeting that this resolution had previously been passed by the members present at the A.G.M of the Club on 22nd March 2015. He emphasised that the resolution authorised the Board of Management to sell the units at North Haven, at current market value, if necessary, assuring the members that, in the unlikely event of this occurring, the Sub Branch will be the first to put in a bid to purchase the property in order to keep it in Club hands. Moved S. Welman, seconded R.W. Elliott that this Ordinary Resolution be passed.All in favour by show of hands. CARRIED The members were then asked to consider and if thought fit pass the Special Resolutions set out below.NOTICE OF SPECIAL RESOLUTIONS FOR ANNUAL GENERAL MEETING

PROCEDURAL MATTERS FOR SPECIAL RESOLUTIONS1) To be passed, a Special Resolution must receive votes from not

less than three quarters (75%) of those members who, being eligible to do so, vote in person on the Special Resolution at the meeting.

2) The Special Resolutions should be read in conjunction with the notes to members which follow the Special Resolutions.

3) Only Life Members, financial RSL and financial Associate Members with at least five (5) years continuous membership shall be eligible to vote on the Special Resolutions.

4) Under the Registered Clubs Act:(a) members who are employees of the Club are not entitled to vote;

and(a) proxy voting is prohibited.5) Amendments to the Special Resolutions (other than minor

typographical corrections which do not change the substance or effect of the Special Resolutions) will not be permitted from the floor of the meeting.

6) The Board of the Club recommends the Special Resolutions to members.


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[The First Special Resolution is to be read in conjunction with the notes to members set out below.]FIRST SPECIAL RESOLUTION(Read by Peter Swaby) That, with effect from and for the purposes of the Annual General Meeting of the Club to be held in 2017, the Constitution of Bondi Junction-Waverley RSL Sub-Branch Club Limited by amended by:inserting the following new Rule 3.1(b) and renumbering the remaining provisions of Rule 3.1 accordingly:

“(b) “Biennial General Meeting” means the Annual General Meeting to be held in 2017 and every second Annual General Meeting thereafter at which the Board is elected to office in accordance with this Constitution.”

deleting from Rule 27.2 the word “annually” and in lieu thereof inserting the word “biennially”.deleting from Rules 28.1(b), (c), (n), (v) and 35.3 the word “Annual” and in lieu thereof inserting the word “Biennial”.

Notes to Members on First Special Resolution

The First Special Resolution proposes to alter the term of office for the Board, with such amendment to take effect from and for the purposes of the Annual General Meeting to be held in 2017.The Constitution currently provides that the Board is elected annually. If the First Special Resolution is passed, the directors will be elected biennially. The biennial election of the Board provides for two (2) year terms of office for directors. The laws relating to registered clubs are becoming more complex. The Board operates under the provisions of the Corporations Act, Gaming Machines Act, Liquor Act, Registered Clubs Act and their associated regulations as well as many other laws. The biennial election of the Board provides for greater stability on the Board and allows a greater time for a Board member to acquire the requisite knowledge (from more experienced directors and from educational programs attended over time) and apply that knowledge to the Club. If the First Special Resolution is passed, the Club must hold an Annual General Meeting each year. However, the Board will only be elected at every second Annual General Meeting.

After the resolution was read, the President informed the meeting that it was a Special Resolution, requiring 75% approval from the floor to be passed. Furthermore, he stipulated that only Service members and Associate members with a minimum of five (5) years continuous membership were eligible to vote. These members had been allocated with orange cards when signing in for the meeting. He then called for debate for and against the motion.

C. Dent spoke against the Special Resolution pertaining to the biennial election of members of the Board of Management. Mr. Dent cited the President’s Report


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from the Club Newsletter dated 26th February 2016 to stipulate that no mandatory requirement has been induced by the Government for compulsory biennial voting as was stated by the President, proving misleading and incorrect. President’s Response: The President concurred, apologising for an oversight in misusing the word “mandatory” instead of “proposed” which he had not realised until subsequently. C. Dent continued, lending his support to the current system of annual voting, maintaining that it is a system of accountability that works and urging that it be retained.R. Duarte spoke against the Special Resolution, referring to the current system of annual voting and the A.G.M as system of accountability that has worked well in the past so why change it. President’s Response: The President qualified Mr. Duarte’s confusion in relation to the A.G.M, stipulating that, regardless of whether the members vote to approve biennial voting of Board members, there would still be an Annual General Meeting held on an annual basis. M. Fowler spoke in favour of the resolution, referring to the excessive costs imposed by the Government’s mandatory training requirements for Directors.President’s response: The President thanked Mr. Fowler for making this very valid point, informing the members that the two mandatory course requirements for Club Directors: Corporate Governance and Finance for Club Boards, have an approximate cost of $1200 per Director. The President then called on Pigott Stinson solicitor, Bruce Gotterson, to clarify and explain the Special Resolution, after which he asserted that the reason the Board of Directors had proposed the resolution for biennial voting from 2017 is that, in the event of a future likely re development, continuity of Board could prove extremely beneficial. Moved M.Fowler, seconded D. Gregory that the Special Resolution be passed.All in favour by show of orange card. 85% in favour /15% against CARRIED

SECOND SPECIAL RESOLUTION (Read by Peter Swaby)

[The Second Special Resolution is to be read in conjunction with the notes to members set out below.]If the First Special Resolution is passed, that with effect from and for the purposes of the Annual General Meeting of the Club to be held in 2017, the Constitution of Bondi Junction-Waverley RSL Sub-Branch Club Limited by amended by:deleting from Rule 28.1(a) the words “any position” and in lieu thereof inserting the words “election to the Board”.inserting the following new Rules 28.1(bb) and (cc):

“(bb) The Board shall, as soon as reasonably practicable after an Annual General Meeting, elect from among their number a President, Senior Vice President and Treasurer.


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(cc) The directors elected to the positions of President, Vice President and Treasurer shall, subject to this Constitution, hold those offices until the conclusion of the next Annual General Meeting.”

deleting Rule 28.1(f) to (k) inclusive, inserting the following new Rules 28.1(f) to (i) inclusive and renumbering the remaining provisions of Rule 28.1 accordingly:“(f) The Secretary shall post the name of the candidate on the Club Notice Board.(g) If the full number of candidates for election to the Board is not nominated then

those candidates who are nominated shall be declared elected to the Board and additional nominations shall with the consent of the nominee or nominees be made at the meeting for the remaining positions on the Board not so filled.

(h) If there be only the requisite number nominated for election to the Board, those candidates shall be declared duly elected.

(i) If there be more than the required number of candidates nominated for the Board an election by secret ballot shall take place.”

Notes to Members on Second Special Resolution

1. The Second Special Resolution will only be considered if the First Special Resolution is passed.

2. The Second Special Resolution proposes to amend provisions regarding the election of the Board, with such amendment to take effect from and for the purposes of the Annual General Meeting to be held in 2017.

3. Currently, the members directly elect candidates to the positions of President, Vice President, Treasurer and Ordinary director.

4. If the Second Special Resolution is passed:(a) members will elect the directors to the Board; and(b) directors will elect the President, Vice President and Treasurer from

amongst their number after each Annual General Meeting.5. The Second Special Resolution will allow directors to choose from amongst

their number the best directors to hold the office bearer positions for the next year.

The President called for debate regarding the second Special Resolution providing authority to newly elected boards to choose their own executive.

C. Dent spoke against the motion, referring to the past success of the system and asserting that it should be retained.President’s Response: The President spoke of the equality of all directors; they are all elected equally.Moved P. Moores, seconded V. Buchan that this Special Resolution be passed. All in favour by show of orange card. LOST


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THIRD SPECIAL RESOLUTION (Read by Peter Swaby)[The Third Special Resolution is to be read in conjunction with the notes to members set out below.]That the Constitution of Bondi Junction-Waverley RSL Sub-Branch Club Limited by amended by deleting Rule 27.1 and in lieu thereof inserting the following new Rule 27.1:“27.1 (a) Subject to Rule 27.1(b), the Board shall consist of eight (8) directors

who shall comprise a President, Vice President, Treasurer and five (5) Ordinary directors.(b) The Board may appoint up to two (2) persons to be members of the

Board (in addition to the directors referred to in Rule 27.1(a)) pursuant to the Registered Clubs Act and Registered Clubs Regulations provided that any appointment under this Rule must not cause the number of directors on the Board (elected and appointed under this Rule) to exceed nine (9). For the avoidance of doubt, if the number of elected directors remains at eight (8), the Board may only appoint one (1) person to be a member of the Board pursuant to the Registered Clubs Act and Registered Clubs Regulations.

(c) The provisions of the Registered Clubs Act and Registered Clubs Regulations shall apply in respect of any person appointed to the Board pursuant to Rule 27.1(b).

(d) Any person appointed by the Board to be a director pursuant to Rule 27.1(b), only has to satisfy the requirements of the Registered Clubs Act and Registered Clubs Regulations to be appointed and does not have to satisfy any requirement in this Constitution including without limitation belonging to a particular category of membership or being a member for a specific period of time before being appointed to the Board.”

Notes to Members on the Third Special Resolution

7) The Third Special Resolution proposes to allow the Board to appoint up to two (2) directors to the Board (who are not elected by members).

8) The Registered Clubs Act and Registered Clubs Regulations enable boards of registered clubs to appoint up to two (2) directors (who are not elected by members) to the Board provided the number of directors on the Board (elected or appointed by the Board) does not exceed nine (9) directors.

9) Given the Board currently comprises eight elected (8) directors, the Board will only be entitled to appoint one (1) director (and not two (2) directors) to the Board. However, if the number of elected directors was reduced to seven (7) at a later date, the Board will be entitled to appoint two (2) directors to the Board.

10) This amendment is intended to allow boards to identify persons with particular skills, expertise and experience which may be beneficial to the registered club and allow the Board to appoint those persons to the Board.

11) The provisions of the Registered Clubs Act and Registered Clubs Regulations (being the power to appoint persons to the Board applies irrespective of whether or not the Third Special Resolution is passed.


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12) Although it is not legally required to do so, the Board believes that it is prudent for the power referred to in paragraph 1 to be incorporated into the Constitution so members are aware of the provisions and their operation.

13) The provisions to be inserted into the Constitution reflect the Registered Clubs Act and Registered Clubs Regulations and do not provide the Board with any powers over and above those contained in the Registered Clubs Act and Registered Clubs Regulations.

14) For the avoidance of doubt: (a) the directors appointed to the Board are in addition to the directors

elected by members or appointed by the Board to fill casual vacancies; and

(b) the Board is not required to appoint persons to the Board but it may do so if it wishes;

(c) any person appointed by the Board to be a director only has to satisfy the requirements of the Registered Clubs Act and Registered Clubs Regulations to be appointed and does not have to satisfy any requirement in the Constitution such as belonging to a particular category of membership or being a member for a specific period of time before being appointed to the Board;

(d) if a person is appointed to the Board, the Club must, within twenty one (21) days of the appointment, display a notice on the Club’s noticeboard and website stating the reasons for the person’s appointment, the person’s relevant skills and qualifications and any payments to be made to the person in connection with his or her appointment.

The President qualified the purpose of the Board of Management in proposing this Special Resolution which enables elected Boards to appoint as many as two (2) additional Directors who are not elected by the members, provided that the number of elected Directors does not exceed nine (9). This provides an avenue through which people with particular skills and professional expertise may be appointed to the Board. Given the prospect of a future re development of the Club, the passing of this Special Resolution could prove beneficial to the Club’s interests. Moved P.Moores, seconded J. Newman that this special Resolution be passed.All in favour by show of orange card. 63% against LOST NOMINATION FOR LIFE MEMBERS: There were no nominations for life membership.POSSIBLE FUTURE DEVELOPMENT OF CLUB AND INTRODUCTION OF BILL STINSONThe President addressed the members present at the meeting in regard to the possible future development of the Club. At the Meeting of the Board of Directors held in February 2016, it was decided that, with the possibility of future development becoming more imminent, the Board needed to appoint a project manager to oversee the process. To this end, Bill Stinson was appointed to assist, during the discussion phase, with viewing various applications from interested parties. The President stipulated that the Board has not yet called for expressions of interest, before inviting Bill Stinson to address the members.


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Bill Stinson, in his presentation speech to the members, immediately declared his independence, stating that in the appointed role of project manager he would represent the interests of the Club solely and not those of third parties. Then, in a very articulate and concise manner, he explained the Club’s cost inefficiency predicament with an outdated and deteriorating building structure, and the crucial need to pursue a re development pathway to ensure future viability. He then encouraged members present to ask any questions. A. Duffy enquired why there have not been any expressions of interest. Response: The pursuit of this course of action is entirely up to the Board and the proposed development is presently only at discussion stage. C.Dent: Is it envisaged that the proposed re development will involve the land occupied by the Club’s land or the whole block? Response: Only the Club land. The President thanked Bill Stinson for his address to the members before providing a brief commendation on the solid reputation he has earned from past performance and the level of trust and confidence that the Board has instilled in him, entrusting him to guide them diligently through the future processes.Treasurer, M. Peoples referred to a question asked by R. Duarte previously in the meeting, pertaining to the Club retaining the land. The Treasurer explained to the member the concept of a “strata” and that, in the joint venture arrangement the Club may be seeking, the licensed Club would end up retaining a “strata” i.e. Clubhouse, shops etc within a larger “strata” i.e. the apartments above. The licensed Club does not own the land in entirety; it owns its component of the “strata”. This is the best situation that we can achieve within this type of development. RECOMMENDATIONS TO INCOMING BOARD:R. Duarte recommended the inclusion of conference rooms and setting up a convention centre with the proposed re development. President’s Response: the President aptly informed the member that these were all matters to be decided at a subsequent time.T. Brennan commented that the music of an afternoon in the Club was far too loud; patrons could hardly hear each other speak.President’s Response: The President asked the member whether she meant the live performer variety or the background music. T. Brennan indicated that it was just the music in general. The President referred this matter to General Manager, P.Swaby, for further investigation.R. Lingard indicated that, in her opinion, the music on Sunday afternoons was not loud enough. The President referred this dilemma of perceptions to the General Manager.The President thanked everyone for their attendance and closed the meeting at 12:45pm.

PRESIDENT DATE


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NOTICE OF ANNUAL GENERAL MEETINGNotice is hereby given that the 45th Annual General Meeting of the Bondi Junction – Waverley RSL Sub Branch Club Limited will be held in the first floor Auditorium of the Club, Gray Street, Bondi Junction, on Sunday 26th March 2017 at 11.00am.

BUSINESS1. Open meeting.2. Apologies.3. Confirmation of the Minutes of the previous Annual General Meeting held on

20th March 2016.4. To consider and if thought fit adopt the Report of the Directors, the audited

Balance Sheet and Financial Statements for the year ended 31st December 2016.

5. To receive and consider the reports of:(i) The President(ii) The General Manager(iii) The Treasurer

6. SUSPENSION OF STANDING ORDERS Declaration of the Poll by Returning Officer RESUMPTION OF STANDING ORDERS7. To elect Patrons for 2017.8. Honorary Members.9. To confirm continuation in office of the Auditors, WW Vick & Co.10. To confirm continuation in office of the Club’s Solicitor, Mark Peoples.11. Members will be asked to consider and if thought fit, to pass the following

resolutions which are proposed as Ordinary Resolutions.

FIRST RESOLUTIONThat pursuant to the Registered Clubs Act:a) The members hereby approve and agree to expenditure by the Club in a sum

not exceeding $40,000 until the next Annual General Meeting for the Club for the following activities of Directors:(i) The reasonable cost of a meal and beverage for each Director

immediately before or after a Board or Committee Meeting on the day of that Meeting when that Meeting corresponds with a normal meal time Reasonable expenses incurred by Directors in travelling to and from Directors meetings or other duly constituted Committee Meetings as approved by the Board from time to time on a production of invoices, receipts or other proper documentary evidence of such expenditure.


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(ii) Reasonable travel, accommodation and other out of pocket expenses incurred by Directors in relation to such other duties including attendance at official functions on behalf of the Club in New South Wales and interstate, entertainment of special guests to the Club and promotional activities performed by Directors provided all such activities and expenses relating thereto are approved by the Board on production of receipts, invoices and other paper documentary evidence

(iii) An Annual President’s Function with the person’s in attendance to comprise the Directors and other persons as chosen by the President

(iv) Expenses involved in sponsorship of Affiliated Clubs. Annual Community Leaders Dinner Expense. Presentation to Members or other persons acknowledging services deemed by the Directors as being of benefit to the Club and/or Community.


SECOND RESOLUTIONThat pursuant to the Registered Clubs Act:a) The members hereby approve and agree to expenditure by the Club in a sum

not exceeding $12,000 for the professional development and education of Directors until the next Annual General Meeting being:(i) The reasonable cost of Directors attending the Clubs New South Wales

Annual General Meeting(ii) The reasonable cost of Directors attending seminars, lectures, trade

displays and other similar events as may be determined by the Board from time to time

(iii) The reasonable cost of Directors attending other Registered Clubs for the purpose of viewing and assessing their facilities and methods of operation provided such attendances are approved by the Board as being necessary for the betterment of the Club


THIRD RESOLUTIONThat pursuant to the Registered Clubs Act, the Members hereby approve and agree to expenditure by the Club of the following benefits for Members which are not offered equally to all full Members of the Club:a) That the Board of the Club makes such donations as it considers fit to each

of the duly constituted social and sporting Sub-Clubs within the Club having regard to the needs and expenditure for those Sub-Clubs and without being required to maintain equality of expenditure between such Sub-Clubs.

b) That the President continues to receive an out of pocket expenses in the sum of $3,000 until the next Annual General Meeting.


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c) That the Honorary Treasurer continues to receive an out of pocket expenses in the sum of $2,000 until the next Annual General Meeting.

d) That each Director continues to receive an out of pocket expenses in the sum of $1,000 until the next Annual General Meeting.

e) That Director’s each receive one (1) Christmas hamper not exceeding the value of $200 per hamper.

NOTE TO MEMBERSThese notes are to be read in conjunction with the above proposed Ordinary Resolutions:1st) The First Resolution is to have the members at the Annual General Meeting

approve an amount not greater than $40,000 for the expenditure by the Club in relation to duties performed by the Club’s Directors.

2nd) The Second Resolution is to have the Members at the Annual General Meeting approve an amount no greater than $12,000 for the expenditure by the Club for Directors to attend seminars, lectures, trade displays and other similar events including the Clubs New South Wales Annual General Meeting and to visit other Clubs to enable the Club’s Governing body to be kept abreast of current trends and developments which may have significant bearing on the nature and way in which the Club conducts its business.

3rd) The Third Resolution is to approve various benefits that have traditionally been provided in the Club and which, following certain amendments to the Registered Clubs Act in 1993, should be approved by the Members at this year’s Annual General Meeting.

4th) The amounts referred to in the three (3) resolutions have been based on the amounts approved by the Members at last year’s Annual General Meeting.

5th) Each of the resolutions must be passed as a whole and cannot be amended by motions from the floor or divided into two or more separate resolutions.

6th) To be passed, each ordinary resolution must receive votes in its favour from not less than a simple majority of those members, who being entitled to do so, vote in person at the meeting.

12. Recommendations to the incoming Board of Directors.

13. To transact any other business which may be brought before the Meeting in the conformity with the Articles of Association?

14. Closure of Meeting

Dated: 24th February 2017 By direction of the Board

Peter SwabyGeneral Manager


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PRESIDENT’S REPORT

On behalf of the Board of Directors, I present to you our members the 45th Annual Report and Financial Statements of the Bondi Junction-Waverley RSL sub-Branch for the year ending 31st December 2016, and my 18th report as your Club President.

In my Annual Report last year I clearly indicated to all of our members the possibility of forthcoming changes to our Club. Although we were unable to secure a bank loan to purchase the Sub-Branch property, we accepted expressions of Interest from Developers prepared to discuss a development whereby we the Club could formerly be involved. While I have kept our members fully informed in my fortnightly newsletter column, I will repeat in this report briefly what took place.

During the process of selecting a Developer, we hired a very experienced Project Manager to assist the Board with the selection process. The Project Manager Mr Bill Stinson came as a highly respected person in the industry to look at the process. I personally carried out checks with several persons and in my opinion he was the right man for the job.

The Board and Mr Stinson went through a process of taking submissions some by way of presentations from six unselected developers. The Board selected its current choice developer Capital Bluestone from the six presentations. Capital Bluestone agreed as part of the deal to assist the club with the purchase of the Sub-Branch property this finally allowing a development to take place.

The settlement took place on the 1st February 2017 with the Sub-Branch being paid $6.5M which included an accommodation agreement in perpetuity for the Sub-Branch to remain within the Club and the Club to continue to use the RSL indicia.

Prior to this year’s AGM it is intended to provide an exhibition of plans and models of the intended development somewhere in the Club for all interested members to inspect. The actual plans and layout of the ground floor and first floor and car space are currently under consideration and will be delivered after the development application is approved by the Waverley Council.

The financial statements contained in this Annual report should be examined as they indicate the need for this development to go ahead now; otherwise we would surely follow the fate of some other Clubs that have been forced to close.

It would be remiss of me as this report goes to the printer in not mentioning a matter raised in the media over the 4th and 5th February 2017 concerning a former member, Mr. Ted Kawicki, and the alleged unfair treatment he has alleged against myself and the Club. Mr. Kawicki was dealt with fairly back in 2009 and 2010 by the Board. He was the subject of disciplinary proceedings on two occasions and he declined to appear for a hearing and under the Constitution (Rules) he is not entitled to enter the Club or renew his membership until that outstanding matter is finalised. It was not my decision as he has stated but the Board’s decision.


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My thanks to our General Manager Peter Swaby, the management and staff for the great job they continue to do in looking after the needs of our members and guests. To the sub-Branch President Kevin Hagan, the Committee and members, together with the ladies of the Women’s Auxiliary for their continuing commitment to the Club, our thanks.

Once again I wish to thank all of our members for their continuing support and allowing me the privilege to serve as your President. It is also my intention to stand for another term as your President.

Bill Harrigan JP Club President


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TREASURER’S REPORTDear Members and Associates,

It is my privilege once again to report to you in relation to the financial affairs of the Club. We all know and understand that without proper financial viability we would not have a Club. The past year for the Club has been good and has also been not so good. It has been good in that we have managed to trade with the result that is similar to the year prior and thus we have stopped the financial slide for the time being. The bad side of course is the fact that the Club is still trading at a loss and as everyone knows with their own budgets this cannot go on forever. The Club of the future will be heavily reliant on the proposed redevelopment and hopefully reinvigoration and renewal of the Club by existing and new members to the new facilities.

The President and I have represented the Club in the negotiations and meetings with the developer that has been chosen by the board, Capital Bluestone. The President has given you a rundown of what has been transpiring and all I wish to say is that at this stage the Club has purchased and is finally the owner of the whole block which will be subject to the redevelopment. Along with ownership unfortunately there comes the price of the purchase and we are now holding the mortgage in excess of 7 million dollars. Part of this is GST that had to be paid but the Club will be able to claim back and this will assist finances over the next couple of years prior to the closure of the Club for redevelopment.

Myself and our vice chairman, Kevin Hagan were lucky enough to strike an accord with members of Capital Bluestone at the annual Clubs NSW Convention at the Gold Coast and it was through this introduction and their subsequent contact with me that they became one of the contenders for the joint redevelopment of the Club.. All the board consider them to be the most suitable joint developers after the appraisal of many others and on this basis a joint development agreement has been signed. Whilst the Club has plenty of assets it was let down by the Commonwealth Bank and others in providing finance. Capital Bluestone has manager to arrange alternate finance for the Club the result of which is that the Club has now purchased the sub branch part of the lot as I mentioned above and the development process is well under way. During the early stages of the discussions with Capital Bluestone myself and other members of the board were introduced to Bill Stinson and after discussion with him the board was of the opinion that he was the development consultant that the Club required to look after the Clubs interest.

Going back to the financial side of the Club’s operations for the last year the actual figures for the last year in comparison with the year prior one will note that the bar trading, excluding depreciation amounted to $321,321 in comparison to $318,442 for the previous year. This was a slight increase and was the first time since 2009 that the bar trade has not shown a decrease.

Poker machine trading excluding depreciation showed a return for the last year in the sum of $680,140 compared to $752,052 in prior year and $770,223 in the year prior to that. This trading figures is of course after all payouts have been taken out. Looking at the cash taken for the year (before payouts) there was only a slight


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difference to the year before which represented less than one day’s trade. This again I believe is a pleasing sign.

There were other positive aspects to the trading figures including function room hire sales of $73,000 which was $21,000 higher than the previous year and the second highest since 2009 but due to increases in areas such as rates, utilities and cleaning costs the cash loss before depreciation and interest was $58,915 compared to the previous years surplus of $35,791. The lower than expected gaming nett was also a major contributor to this.

Luckily the board has had the foresight over prior years to build up cash reserves in our Westpac account to meet outstanding liabilities and to generally have money available for when the closing of the Club takes place. The Westpac account got to nearly $1 million however due to expenses that have been incurred in the initial stages of the redevelopment negotiations such as valuations etc. and the Club now incurring further taxation liabilities the balance at the Westpac account has dropped however our projections seem to indicate that there are sufficient funds to carry the Club through the redevelopment stage. It may be necessary however to sell the Club property at North Haven (Calwalla) which was discussed and approved at the last annual general meeting. This would allow the Club to have further funds of $800,000 and luckily as the property was purchased only several months before capital gains tax was introduced no capital gains tax will be payable by the Club on the sale. It will be a shame to lose this holiday letting asset however as it is being purchased by the subbranch who are now flush with funds it still will be available for use by Club members.

I wish to take this opportunity to thank the whole board who, as a united team, spent many hours of their personal time visiting development sites and listening to proposals by various developers before deciding on the current developer, Capital Bluestone who will be undertaking the rebuilding of the Club and residential tower above. It was due to their ability to be able to finance the Club’s purchase of the subbranch land, following the refusal by the banks that we were able to proceed with the development. Bill Stinson who will manage the development on behalf the Club is proving to be a valuable asset and a comfort to the board due to his knowledge of the building industry.

Should anyone have any queries in relation to the financial aspects of the redevelopment and what will be happening financially up to demolition and reopening I am more than happy to discuss the process at mutually convenient times. I do believe it is the responsibility of members to keep up-to-date on all aspects of the Club. Members should be fully aware that whilst new Club is being built its future is totally dependent on the patronage it receives and I believe it is up to members to introduce to the Club new members to swell the ranks of the patrons.

Club elections will be coming around shortly and I ask that all members take the time to cast their vote as it is only with large majority of the members voting that true representation of the members can be obtained. I will be running again and hope to continue my work in relation to the redevelopment of the Club with your approval.


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2016 2015 2014 2013 Bar trading, excluding depreciation 321,321 318,442 349,218 429,664 Poker machine trading, excluding depreciation 680,140 752,052 770,223 705,307 Net rental income, excluding depreciation 319,446 304,252 291,308 191,224 Other regular income 193,068 169,351 183,034 212,288 1,513,975 1,544,097 1,593,783 1,538,483 Expenses, excluding depreciation & interest paid 1,572,890 1,508,306 1,442,217 1,562,188

Surplus (profit) before depreciation, interest & non-reoccuring or non-regukar items (58,915) 35,791 151,566 (23,705)

Profit on disposal of assets 12,161 6,782 57,025 - Sale of poker machine entitlements - 179,730 -

Venue receipts - 12,000 -

Profit/loss before depreciation and interest paid -46,754 42,573 400,321 (23,705)

Deduct: depreciation and interest paid 168,968 170,430 153,552 172,361

Operating (loss)/profit before Income Tax Expense including depreciation and interest paid (215,722) (127,857) 246,769 (196,066)

RESULTS COMPARISON

I thank you for having me as your Treasurer for the last year. It is a position that I have enjoyed and hopefully played a positive role together with the rest of the board in the management of the Club over the last year.

I cannot close this report without wishing to thank our Secretary Manager, Peter Swaby, for all work and assistance he has given both the president and myself in relation to the negotiation of the joint development agreement and all other matters pertaining to the joint development. His assistance with the numbers was invaluable.

Mark H. Peoples Llb (Syd)

Honorary Treasurer


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GENERAL MANAGER’S REPORTDear Members,As you will read in our Treasurers Report there are many positive aspects to take out of the 2016 trading figures including a slight increase in Bar Sales compared to the previous year and a $21,000 increase in Function Room Hire sales which represents the second highest since 2009.

The overall Management of the Clubs finances is still a difficult one with issues such as aging equipment including refrigeration and air conditioning leading to an increase in repair and replacement bills, add to this the cost increases in utilities, rates, wages and other items and it shows the need for a long term plan to ensure the survival of your Club.

This has been achieved with the signing of a Development Agreement with Capital Bluestone that is explained in more detail in the President’s and Treasurer’s Reports and it was a pleasure to work closely with your Board during the year to achieve what I believe is a great outcome for the future of your Club and all its Members.

I encourage you all to have a good read of the Treasurers and Presidents reports and all the finances which will give you more detail into our current situation and what is happening with the future of your Club.

We will continue to look into new promotions and loyalty options for all our Members in the coming year and I hope that you will show your support by participating in any new events that we try.

I would like to thank all our Board Members for their continued support and I look forward to working with you all in the coming year.

To our Managers and Administration staff - Rob, Shawn, Alex, Debbie, Graeme, Tina and Sharon, thank you once again for your dedication and continued support.

Thank you also to our loyal team of staff who are all committed to making your experience here when you visit a very pleasant one.

Finally, thank you to our loyal Members for your patronage throughout the year and I encourage you all to use the facilities we have to offer on more occasions and tell your friends and family to join and experience all Club Bondi Junction has to offer.

I look forward to seeing you all at your Club soon

Peter Swaby

General Manager


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DIRECTORS’ REPORTYour Directors present this report on the Club for the financial year ended 31 December, 2016.

DIRECTORSThe Directors in office at any time during or since the end of the year and information on each arelisted hereunder:

(a) William (Bill) Harrigan JP - President* Retired AFP Detective Superintendent. Board member since March 1997.

Sub-Branch Secretary. Ex-officio Chairman of all Sub-Committees. NSW RSL State Councilor (16 years), RSL Life Member and Club Life Member.

(b) Kevin Hagan - Vice President* Board member from March 2000 to March 2001 , then re-elected to the Board

of Directors on 6 April 2003. Club member since December 1987. Sub Branch President, Past President of the Darts Club. Involved in indoor bowls, darts and swimming clubs. Self-employed as a carpet layer. Elected Vice President on 25th March, 2007.

(c) Mark Peoples - Hon. Treasurer* Elected to the Board of Directors on 30 March 2008 until 24 March 2014. Club

member since 1995. Practising Solicitor in Bondi Junction. Has been the Club’s legal advisor for the

past 9 years.

(d) Andrew Bell* (no re-elected 20 March 2016) Elected to the Board of Directors on 23 March 2015. Service member of the

Club since 2006.

(e) Craig Cunningham* Elected to the Board of Directors on 20 March 2016. Club member since

January 2011. Retired NSW Police inspector.

(f) Greg Goodieson* Elected to the Board of Directors on 20 March 2016. Service member of the

Club since December 2012. Senior technical liaison officer with the Defence Department.

(g) Erie Lindsay* Elected to the Board of Directors on 22 March 2015. Club member since

August 2000. Occupation - physiotherapy assistant.

(h) Denis Sheridan* Elected to the Board of Directors on 23 March 2015. Club member since

2006.(i) Raymond Wildman* (resigned 23 February 2016) Club member since November 2013. Employed in the Cub industry in the

Eastern Suburbs. Indoor bowls club committee member.


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(j) Peg Watson * Elected to the Board of Directors on 22 March 2015. Club member since

February 1999. Member of the nursing profession.The Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. *Denotes Directors who have undertaken finance and club governance training. All Directors are members of Clubs NSW Directors’ Institute.

MEETINGS OF DIRECTORSDuring the financial year the Board of Directors met for 12 regular monthly meetings. The number of Meetings attended by each director was:

a b a b

W. Harrigan 12 12 E. Lindsay 12 12

K. Hagan 12 12 D Sheridan 12 9

M. Peoples 12 11 P. Watson 12 9

C. Cunningham 9 8 R. Wildman 2 1

G Goodieson 9 5 A. Bell 3 3

a = meetings eligible to attend b = meetings attended

OBJECTIVESShort Term:To provide an enjoyable club experience for members, their guests and the public.To properly maintain club facilities for the enjoyment of all and to provide a level of customer service in keeping with the expectations of members and their guests.

Long Term:To continue to uphold the traditions of the RSL movement by creating a safe and friendly environment for members to meet and socialize.To expand and improve club facilities by redeveloping the site on which the Club is situated to meet the expectations of members.

Strategy:To achieve the above objectives the Club:1. Will put in place and maintain appropriate strategies and programmes to

facilitate the required level of amenity and service within the club operations.

2. Will develop business plans and strategies which will achieve both the financial and cultural objectives in line with the long-term objectives.

3. Has acquired the portion of the Club’s premises at Bondi Junction owned by the associated Sub-branch and entered in to a development agreement with Capital Bluestone Pty Limited, a property development Company.


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PRINCIPAL ACTIVITIESThe principal activities of the Club during the course of the financial year were: 1. Participation in ClubsNSW Governance and Compliance programs.2. Commercial leaser of club property and facilities.3. Clubhouse operations including:

a) Bar and restaurant facilitiesb) Gaming and wagering facilitiesc) Function facilitiesd) Sporting groups for memberse) Other services for members and their guests

These activities assisted in achieving the objectives of the Club by providing the income required to sustain current operations and to assist in the planning of longer term developments.The Club measures its performance by:1. Comparing financial and non-financial outcomes against previous results.2. Comparing itself against entities within the industry.3. Evaluating itself against the performance indicators to ensure that its results

are consistent and within accepted guidelines.There were 4,609 financial members of the Club at balance date of which 214 were service members, 44 were associate members and 2,265 were club members of 5 or more years.

MEMBERS’ GUARANTEEBondi Junction-Waverley R.S.L. Sub-Branch Club Limited is a company limited by guarantee.Every member of the Club undertakes in accordance with the Memorandum of Association to contribute such amount, not exceeding $2, as may be required in the event of the winding up of the Club during the period of membership or within one year afterwards.At 31 December 2016 the collective liability of members was $9,218 (2015: $9,396).

AUDITORS’ INDEPENDENCE DECLARATIONThe auditors’ independence declaration for the year ended 31 December 2016 as required under Section 307C of the Corporations Act 2001 has been received and can be found on the page following this Directors’ Report.

Signed in accordance with a resolution of the Board of Directors. W. Harrigan – President M. Peoples - Hon. Treasurer

Dated this 6th day of February, 2017


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AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE

CORPORATIONS ACT 2001 TO THE DIRECTORS OF

BONDI JUNCTION-WAVERLEY R.S.L. SUB-BRANCH 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 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.

5th Floor379-383 Pitt Street Sydney NSW 2000

W W Vick & Co Phillip Jones - Partner Chartered Accountants



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DIRECTORS’ DECLARATIONThe directors of the Club declare that: 1. the financial statements and notes, being the Statement of Financial Position,

Statement of Profit or Loss, Statement of Comprehensive Income, Statement of Change in Equity, Statement of Cash Flows and Notes to the Financial Statements, are in accordance with the Corporations Act 2001 and:(a) comply with Australian Accounting Standards; and(b) give a true and fair view of the financial position as at 31 December

2016 and of the performance for the year ended on that date of the Club.

2. in the director’s opinion there are reasonable grounds to believe that the Club will be able to pay its debts as and when they become due and payable.

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

W. Harrigan – President M. Peoples - Hon. Treasurer



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INDEPENDENT AUDIT REPORT TO THE MEMBERS OF


Report on the Financial ReportWe have audited the accompanying financial report of Bondi Junction-Waverley RSL Sub-branch Club Limited (the company) which comprises the Statement of Financial Position as at 31 December 2016, and the income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration.

Directors’ Responsibility for the Financial ReportThe directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Audit ResponsibilityOur responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those Standards require that we comply with relevant 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 judgement, 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 of the financial report that gives a true and fair view 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.


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IndependenceIn conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Bondi Junction-Waverley RSL Sub-branch Club Limited, is in the same terms as provided to the directors as at the date of this auditor’s report.

OpinionIn our opinion, the financial report of Bondi Junction-Waverley RSL Sub-branch Club Limited is in accordance with the Corporations Act 2001, including:(a) 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(b) complying with Australian Accounting Standards and the Corporations

Regulations 2001.

5th Floor379-383 Pitt Street Sydney NSW 2000

W W Vick & Co Phillip Jones - Partner Chartered Accountants



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STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER, 2016

NOTE 2016 2015 $ $

Revenue 2 2,542,295 2,603,712Other Income 2 574,543 534,913Profit on Disposal of Non-current assets 12,161 6,781Changes in Inventories (6,324) (1,375)Consumables Used (431,909) (434,632)Employee Benefits Expense (1,092,040) (1,061,126)Depreciation and Losses on Disposal 3 (160,052) (166,000)Finance Costs 3 (8,916) (4,430)Occupancy Costs (221,641) (209,320)Rental Expenses (152,873) (147,871)Poker Machine Supplementary Tax (157,546) (175,844)Cleaning, Cleansers & Laundry (98,340) (92,840)Light, Power & Heat (132,262) (124,910)Repairs & Maintenance (210,795) (238,236)Other Expenses from Ordinary Activities (672,023) (616,679) __________ __________Profit/(Loss) before Income Tax Expense 2/3 (215,722) (127,857)Income Tax Attributable to Profit/(Loss) 4 (37,403) (39,009) __________ __________Profit/(Loss) attributable to the Members (253,125) (166,866) __________ __________ __________ __________

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER, 2016

Profit/(Loss) for the Year (253,125) (166,866)Other comprehensive income after income tax - - __________ __________Total comprehensive income for the year (253,125) (166,866) __________ __________Total comprehensive income attributable to the Members (253,125) (166,866) __________ __________ __________ __________

The accompany Notes form part of these financial statements


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STATEMENT OF CHANGE IN EQUITY FOR THE YEAR ENDED 31 DECEMBER, 2016

CAPITAL RETAINED PROFITS NOTE EARNINGS RESERVE TOTAL

Balance 31 December 2014 648,563 2,750,298 3,398,861Profit/(Loss) attributable to the members – 2015 year (166,866) - (166,866) ________ _________ __________Balance 31 December 2015 481,697 2,750,298 3,231,995Profit/(Loss) attributable to the members – 2016 year (253,125) - (253,125) ________ _________ __________Balance 31 December 2016 228,572 2,750,298 2,978,870 ________ _________ __________ ________ _________ __________

Capital profits reserve records profits on sale of non-current assets.



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STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER, 2016

NOTE 2016 2015 $ $ASSETSCURRENT ASSETSCash and Cash Equivalents 5 745,860 1,014,872Trade and Other Receivables 6 3,865 6,436Inventories 1(a) 31,570 37,894Other Current Assets 7 59,752 80,007Non-Current Assets Held for Resale 8(c) 80,000 - __________ __________TOTAL CURRENT ASSETS 921,047 1,139,209 __________ __________

NON-CURRENT ASSETSProperty, Plant and Equipment 8(a) 940,079 975,519Investment Property 8(b) 1,500,000 1,580,000 __________ __________TOTAL NON-CURRENT ASSETS 2,440,079 2,555,519 __________ __________TOTAL ASSETS 3,361,126 3,694,728 __________ __________

LIABILITIESCURRENT LIABILITIESTrade and Other Payables 9 258,556 324,255Short-term Provisions 10 69,310 70,793Current Tax Liabilities 11 (12,110) 7,685 __________ __________TOTAL CURRENT LIABLITIES 315,756 402,733 __________ __________NON-CURRENT LIABILITIESLong-term Provisions 10 66,500 60,000 __________ __________

TOTAL LIABILITIES 382,256 462,733 __________ __________NET ASSETS 2,978,870 3,231,995 __________ __________ __________ __________

MEMBERS’ EQUITYReserves 2,750,298 2,750,298Retained Earnings 228,572 481,697 __________ __________TOTAL MEMBERS’ EQUITY 2,978,870 3,231,995 __________ __________ __________ __________



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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER, 2016

The financial statements are for Bondi Junction-Waverley RSL Sub-branch Club Limited as an individual entity incorporated and domiciled in Australia. Bondi Junction-Waverley RSL Sub-branch Club Limited is a company limited by guarantee.

1. Summary of Significant Accounting PoliciesBasis of PreparationThese general purpose financial statements have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards and Interpretations of the Australian Accounting Standards Board. The Company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. 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 amount presented in the financial statements have been rounded to the nearest dollar. The financial statements were authorised for issue on 6th February 2017 by the Directors of the Club.

Accounting Policies

(a) Inventories Inventories, comprising liquor and other bar stocks, have been measured

at cost. Cost has been arrived at by using the “first in first out” method of assigning costs.

(b) Plant and Equipment Plant and equipment are measured on the cost basis less depreciation and

impairment losses. The carrying amount of plant and equipment is reviewed annually by directors

to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

(c) Freehold Land and Buildings These assets are shown at cost less, in the case of buildings, accumulated

depreciation. The Directors of the Club have formed the opinion from enquiries made of the various properties managing agents and from insurance valuations that the replacement cost of this class of assets is, in total, in excess of the carrying amounts in the balance sheet.


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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER, 2016

(d) Depreciation and Amortisation Depreciation has been provided on buildings using the straight line method

whereby equal depreciation charges are written off over the estimated useful life of the building. Depreciation has been provided on all other fixed assets using the reducing balance method. Under this method a greater depreciation charge is incurred in the earlier years of the useful life of the asset with the charge decreasing from year to year.

Clubhouse extensions and alterations were amortised over a seven year period ending on 31 December 2012, being the end of the term of the Club’s then lease from the Sub-Branch. By that method equal charges were incurred each year and written off against the asset.

The Depreciation and Amortisation rates used for each class of depreciable assets are:

Class of Fixed Asset Rates Used Clubhouse extensions & alterations to 31/12/2012 (see above) Buildings 5% Plant & equipment 15% Furniture & fittings 15% Poker machines 25%

(e) Impairment of Assets At each reporting date, the directors review the carrying values of the Club’s

tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

(f) Employee Entitlements Provision is made for the company’s liability for employee benefits arising

from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.

Contributions are made by the Club to employee superannuation funds and charged as expenses when incurred.


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(g) Income Tax The Club operates the liability method of tax effect accounting. Due to the

doctrine of mutuality, the Club is taxed on net income from non-members and other external sources only, and accordingly, taxable income does not relate to operating results as disclosed in the financial statements.

The income tax expense for the year comprises current income tax payable and is charged to the income statement based on tax payable on taxable income.

Deferred tax asset in relation to capital losses is not brought to account as it is not yet probable that those losses will be utilised. At balance date convincing evidence does not exist that the capital losses will be realised.

(h) Members’ Subscriptions Subscriptions income has been taken into account in the profit and loss

statement in the year in which they are received, regardless of the subscription year to which they may relate.

(i) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, cash at bank, deposits

held at call with banks and other short-term highly liquid term deposits with maturities not exceeding twelve months.

(j) Investment Properties Investment properties comprise one residential rental property and one

commercial rental building which are held to generate rental revenue. Investment properties are carried at cost. The replacement cost of this class of asset is in excess of the carrying amount in the balance sheet.

(k) Revenue and Expenses All revenue and expenses are stated net of the amount of goods and services

tax (GST). Revenue from bar sales is recognised when the goods and services are

provided. Poker machine revenue is recognised net of payouts and when the goods and services are provided. Rental income is recognised as the right to receive income accrues. Interest income is recognised as it accrues. Commission revenue is recognised when the Club acts as an agent rather than a principle in the transaction as is brought to account at the net amount received by the Club.

Expenses are classified by nature in the financial statements.


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(l) Financial Instruments

Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity

becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs except where the instrument is classified ‘at fair value through profit or loss’ in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement Finance instruments are subsequently measured at either fair value, amortised

cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Amortised cost is calculated as: i. the amount at which the financial asset or financial liability is measured

at initial recognition;ii. less principal repayments;iii. plus or minus the cumulative amortisation of the difference, if any,

between the amount initially recognised and the maturity amount calculated using the effective interest method; and

iv. less any reduction for impairment. The effective interest method is used to allocate interest income or interest

expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss.

(i) Financial assets at fair value through profit or loss Financial assets are classified at ‘fair value through profit or loss’ when they

are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss.


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(ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or

determinable payments that are not quoted in an active market and are subsequently measured at amortised cost.

(iii) Held-to-maturity investments Held-to-maturity nvestments are non-derivative financial assets that

have fixed maturities and fixed or determinable payments, and it is the entity’s intention to hold these investments to maturity. They are subsequently measured at amortised cost.

(iv) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are

subsequently measured at amortised cost.

Impairment At each reporting date, the entity assesses whether there is objective evidence

that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the Income Statement.

Derecognition Financial assets are derecognised where the contractual rights to receipt

of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.

(m) Comparative Figures Where required by Accounting Standards comparative figures have been

adjusted to conform with changes in presentation for the current financial year.


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2016 2015 $ $

2. REVENUE AND OTHER INCOME Revenue Bar Sales 1,019,877 1,021,574 Poker Machine Revenue 1,439,973 1,495,578 Commissions – vending machines, etc. 10,206 9,385 Keno and TAB Commissions 49,903 51,154 Interest Received – other persons 22,336 26,021 __________ __________ Total Revenue 2,542,295 2,603,712 __________ __________

Other Income Rents Received 472,319 452,122 Members’ Subscriptions 16,675 20,050 Function Rooms Rental 73,532 51,626 Sundry Other Income 12,017 11,115 __________ __________ Total Other Income 574,543 534,913 __________ __________ Total Revenue and Other income 3,116,838 3,138,625 __________ __________ Profit on Disposal of Non-Current Assets 12,161 6,781 __________ __________

3. PROFIT/(LOSS) FOR THE YEAR(a) Expenses Cost of Sales 438,233 436,007 __________ __________ Finance Costs Interest Paid 8,916 4,430 __________ __________ Depreciation of Non-current Assets Plant & Equipment 56,985 53,320 Furniture, Fittings & Office Machines 15,008 29,281 Poker Machines 88,059 83,399 __________ __________ 160,052 166,000 Losses on Disposal of Non-current Assets - - __________ __________ 160,052 166,000 __________ __________ Bad debts written off – trade debtors - - __________ __________ Promotions and Prizes 225,515 194,363 __________ __________ Contributions to employees’ defined superannuation funds 88,159 86,296 __________ __________


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2016 2015 $ $

(b) Significant Revenue and Expenses The following significant revenue and expense items are relevant in explaining the financial performance: Consideration on disposal of Non-current Assets 14,140 14,640 Carrying amount of the Assets disposed 1,979 7,859 __________ __________ Profit/(Loss) on disposal 12,161 6,781 __________ __________

(c) Auditors’ Remuneration Auditing or reviewing the financial report 9,920 8,800 Accounting and Secretarial services 9,000 7,360 Taxation services 800 700 __________ __________ 19,720 16,860 __________ __________

4. INCOME TAX(a) Income Tax Expense Prima facie tax payable on profit/(loss) From ordinary activities before Income tax at 30% (2015: 30%) (64,716) (38,357) Add: Tax effect of: Non-deductible expenses 585,757 571,413 __________ __________ 521,041 533,056 __________ __________ Less: Tax effect of: Non-assessable income 453,587 463,138 Tax deductible timing differences 30,051 30,909 Tax losses deducted - - __________ __________ 483,638 494,047 __________ __________ Income Tax Expense 37,403 39,009 __________ __________

Weighted average effective tax rate 0% 0%

(b) The Club also has capital tax losses for which no deferred tax asset is recognised on the balance sheet of $281,134 (2015: $281,134) and are available indefinitely for offset against future capital gains of a similar nature subject to continuing to meet relevant statutory tests.


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2016 2015 $ $

5. CASH AND CASH EQUIVALENTS Cash on Hand 50,000 50,000 Cash at Bank 31,379 16,650 __________ __________ 81,379 66,650 __________ __________ Cash Management and Term Deposit Accounts 664,481 948,222 __________ __________ Total Cash and Cash Management Accounts 745,860 1,014,872 __________ __________ __________ __________

Cash at bank and cash on hand are carried at their face value. There is no interest received on cash at bank as it comprises working bank accounts.

The cash management accounts are 24 hour call accounts and pay interest at rates between 0.01% and 2.9% p.a. (2015: 0.01% to 3.3%). Credit risk is minimal as the deposits are held with the Westpac Banking Corporation.

6. TRADE AND OTHER RECEIVABLES Trade Debtors 3,765 6,061 Other Debtors 100 375 __________ __________ 3,865 6,436 __________ __________ __________ __________

The collectability of debts is assessed at balance date, bad debts are written off in the Profit and Loss Statement and specific provision is made for any doubtful accounts. There were no specific debts considered doubtful as at 31 December 2016. Trade debtors are generally settled within 30 days and are past due but not impaired.

The Club does not have any material credit risk exposure to any single debtor or group of debtors.

7. OTHER CURRENT ASSETS Prepayments 54,752 75,007 Security Deposit 5,000 5,000 __________ __________ 59,752 80,007 __________ __________ __________ __________


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2016 2015 $ $

8. PROPERTY, PLANT AND EQUIPMENT(a) Property Plant and Equipment Clubhouse Extensions and Alterations At Cost 5,859,861 5,859,861 Less: Accumulated Amortisation 5,859,861 5,859,861 Club Redevelopment – At Cost to Date 42 953 - __________ __________ 42,953 - __________ __________ Furniture, Fittings, Carpets, Plant and Equipment - At Cost 2,974,576 2,972,918 Less: Accumulated Depreciation 2,566,082 2,503,066 __________ __________ 408,494 469,852 __________ __________ Poker Machines - At Cost 1,060,687 1,004,740 Less: Accumulated Depreciation 773,440 700,458 __________ __________ 287,247 304,282 __________ __________ Freehold Land and Buildings LAND - At Cost as Apportioned 82 Ebley Street, Bondi Junction 52,000 52,000 84 Ebley Street, Bondi Junction 45,000 45,000 86 Ebley Street, Bondi Junction 45,000 45,000 9 Gray Street Bondi Junction 59,385 59,385 __________ __________ 201,385 201,385 __________ __________ 940,079 975,519 __________ __________ __________ (b) Investment Property Freehold Land and Buildings LAND – At Cost as Apportioned 19 The Parade, North Haven - 80,000 36-42 Bronte Road, Bondi Junction 1,500,000 1,500,000 __________ __________ 1,500,000 1,580,000 __________ __________ BUILDINGS - At Cost as Apportioned 19 The Parade, North Haven - 210,388 Less Accumulated Depreciation - 210,388 __________ __________ - - __________ __________ 1,500,000 1,580,000 __________ __________ __________ __________


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2016 2015 $ $

(c) Non-Current Assets Held for Sale 19 The Parade, North Haven Land - at Cost as apportioned 80,000 - __________ __________ Buildings- at Cost as apportioned 210,388 - Less: Accumulated Depreciation 210,388 - __________ __________ - - __________ __________ 80,000 - __________ __________ __________ __________ The Board of Directors have proposed to sell “Calwalla Court” 19 The

Parade North Haven to the associated Sub-branch. Indications are that the sale will be finalised within 6 months of balance date.

(d) Valuations of Land and Buildings The Club’s accounting policy is to carry the value of land and buildings in

the books at cost as stated in Note 1 of the notes to and forming part of the accounts.

Land and buildings were last valued by Global Valuation Services Pty Limited in May 2006. Current replacement insurance values are for:

1-9 Gray Street and 36-42 Bronte Road Bondi Junction $18,790,000 A current valuation has been received from Paul Hancox of PRD Nationwide for 19 The Parade, North Haven $ 800,000

(d) Movements in Carrying Amounts Furniture Poker Land Total Plant etc. Machines Bal 31/12/14 475,127 327,438 1,781,385 2,583,950

Additions 82,807 62,620 - 145,427 Disposals (5,481) (2,377) - (7,858) Depreciation expense (82,601) (83,399) - (166,000) ___________________________________ Bal 31/12/2015 469,852 304,282 1,781,385 2,555,519

Additions 12,422 71,120 42,953 126,495 Disposals (1,787) (96) - (1,883) Depreciation expense (71,993) (88,059) - (160,052) ___________________________________

Bal 31/12/2016 408,494 287,247 1,824,338 2,520,079 ___________________________________ ___________________________________


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Core and Non-Core PropertyCore Property

In accordance with the Registered Clubs Act 1976, under section 41J, the following properties are core property of the Club:• AttheClub’sAGMon20March2016theClubmembersbyordinaryresolution

resolved to reclassify the defined Premises of the Club situated at Gray Street Bondi Junction NSW 2022 and disclosed as 9 Gray Street and 82-86 Ebley Street Bondi Junction in the financial statements as non-core property.

Non-Core PropertyIn accordance with the Registered Clubs Act 1976, under section 41J, the following properties are non-core property of the Club:• ThedefinedPremisesoftheClubsituatedatGrayStreetBondiJunctionNSW 2022 and disclosed as 9 Gray Street and 82-86 Ebley Street Bondi Junction in the financial statements• 36-42BronteRoad,BondiJunctionNSW2022• 19TheParade,NorthHavenNSW2443

9. TRADE AND OTHER PAYABLES 2016 2015 $ $

CURRENT – Unsecured LiabilitiesTrade Creditors 83,286 183,082Sundry Payables & Accrued Expenses 168,577 134,415Income Received in Advance 7,158 7,158Net GST Payable (Refundable) (465) (400) __________ __________ 258,556 324,255 __________ __________ __________ __________

Accounts Payable Liabilities are recogonised when the Club becomes obliged to make future

payments resulting from the purchasing of goods and services. Liabilities are normally settled within 30 days of due dates.


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10. PROVISIONSEmployee Entitlements Long

Annual Service Leave Leave Total Balance 31 December 2014 63,976 48,185 112,161 Additional provisions raised

during the year 6,817 11,815 18,632 Amounts used/written back - - - ________ _________ __________ Balance 31 December 2015 70,793 60,000 130,793 Additional provisions raised

during the year - 6,500 6,500 Amounts used/written back (1,483) - (1,483) ________ _________ __________ Balance 31 December 2016 69,310 66,500 135,810 ________ _________ __________ ________ _________ __________

2016 2015 $ $

Analysis of Total Provisions Current 69,310 70,793 Non-Current 66,500 60,000 __________ __________

135,810 130,793 __________ __________ __________ __________

Provision for Long-term Employee Benefits

A provision has been recognised for employee entitlements relating to long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits have been included in Note 1.

11. CURRENT TAX LIABILITY Income tax expense 37,403 39,009 Instalments paid (49,513) (31,324) __________ __________ Current Tax Liability/(Refund) (12,110) 7,685 __________ __________ __________ __________

12. CAPITAL AND LEASING COMMITMENTS(a) Operating Equipment Agreements Payable - not later than 12 months 1,200 5,240 - between 2 years and 5 years - 1,200 __________ __________ 1,200 6,440 __________ __________ __________ __________


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(b) The Club entered in to a new lease from 1 January 2016 for the premises it occupies at Bondi Junction until 31 December 2017, with a 2 year option to 31 December 2019.

On 1 February 2017 the Club acquired the premises it occupies and rental commitments ceased on that date

13. CONTINGENT LIABILIITESUnredeemed members’ reward points 45,265 44,129 __________ __________ __________ __________

14. KEY MANAGEMENT PERSONNEL COMPENSATION Key Management Personal are defined as any person(s) having authority and

responsibility for planning, directing and controlling the activities of the Company directly or indirectly.

Short-term employee benefits 106,670 103,427 Post-employment benefits 9,362 9,283 Other long-term benefits - - __________ __________ 116,032 112,710 __________ __________ __________ __________

15. MEMBERS’ GUARANTEE Bondi Junction-Waverley R.S.L. Sub-Branch Club Limited is a company limited by

guarantee. Every member of the Club undertakes in accordance with the Memorandum of

Association to contribute such amount, not exceeding $2, as may be required in the event of the winding up of the Club during the period of membership or within one year afterwards. The total number of members at 31 December 2016 was 4,609 (2015: 4,698).

16. RELATED PARTIES The names of each person holding the position of Director of the Club during the

financial year were: K. Hagan M Peoples P. Watson G. Goodieson W. Harrigan R. Wildman E. Lindsay D. Sheridan A. Bell C. Cunningham


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17. FINANCIAL RISK MANAGEMENT(a) Interest Rate Risk The Club’s exposure to interest rate risk, which is the risk that a financial

instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows:

Financial Assets Cash and Cash Equivalents – funds held on deposit during the financial

year were $745,859 (2015: $1,014,872) and earned a weighted average effective interest rate of 2.35% p.a. (2015: 2.45% p.a.).

Receivables of $3,865 (2015: $6,436) were not interest bearing. Financial Liabilities Trade and Other Payables were $258,556 (2015: $324,255) were not

interest bearing.(b) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral

or other security, at balance date to recognised financial assets is the carrying amount of those assets, net of any provisions for doubtful debts of those assets, as disclosed in the balance sheet and notes to and forming part of the financial statements.

The Club does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Club.1) Receivables are generally settled in 30-45 days. No allowance is

required for irrecoverable receivables which was determined by reference to past collections experience.

2) Trade and other payables are recognised when the Club becomes obliged to make future

payments resulting from the purchase of goods and services. Payables are generally

settled in 30-60 days.

18. ECONOMIC DEPENDENCYThe Club is dependent upon its revenue from rental properties to sustain positive cash flows from operating activities.

19. DIRECTORS’ BENEFITSThe Directors of the Club are elected on an honorary basis and do not receive remuneration or retirement benefits. Out of pocket expenses are reimbursed and the reasonable costs of food anddrink are met in the course of carrying out their duties at Board and Committee meetings and the costs of continuing education are also met by the Club.


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2016 2015 $ $

Directors expenses and honorarium 18,817 17,370 __________ __________ __________ __________

20. ENTITY DETAILSThe registered office and principal place of business of the Club is:1-9 Gray Street, Bondi Junction NSW 2022.

21. EVENTS AFTER THE REPORTING PERIODOn 1 February 2017 the Club acquired the premises it occupies at 1-9 Gray street Bondi Junction and the shops at 28 to 34 Bronte Road Bondi Junction for $6,500,000 plus GST.There have been no other events after the reporting date which would have a material effect on the Club’s financial statements at 31 December 2016.


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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2016

2016 2015 $ $Cash Flows from Operating ActivitiesBar Sales 1,019,877 1,021,574Revenue - Poker Machines 1,439,973 1,495,578Revenue – Rentals 545,851 503,748Members Subscriptions 16,675 20,050Interest Income 22,336 26,021Other Income 14,313 6,804Keno, TAB & Other Commissions 60,110 60,538 __________ __________ 3,119,135 3,134,313Payments to Suppliers & Employees 3,275,695 3,042,563 __________ __________Net Cash provided by (used in) Operating Activities (156,560) 91,750 __________ __________

Cash Flows from Investing ActivitiesPayments for Plant, Equipment, Furniture,Poker Machine & Buildings (126,495) (145,427)Proceeds from Sales of Property, Plant & Equipment 14,043 -Net Proceeds from Sales of Poker Machine Entitlements - 14,640 __________ __________ (112,452) (130,787) __________ __________Cash Flows from Financing Activities - - __________ __________ NET INCREASE/(DECREASE) IN CASH HELD (269,012) (39,037)Cash at Beginning of Year 1,014,872 1,053,909 __________ __________CASH AT END OF YEAR 745,860 1,014,872 __________ __________ __________ __________


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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2016

2016 2015 $ $CASH FLOWS INFORMATION

(a) Reconciliation of Cash Cash includes cash at bank and on hand which is shown in the Balance Sheet as: Short-term Bank Deposit accounts 664,481 948,222 Cash on Hand 50,000 50,000 Cash at Bank 31,379 16,650 __________ __________ 745,860 1,014,872 __________ __________ __________ __________

(b) Reconciliation of Cash Flows from Operating Activities Operating Profit/(Loss) after Income Tax (253,125) (166,866) Non Cash Flows in Operating Activities Depreciation and write-offs 160,052 166,000 (Profit)/Loss on Disposal of Assets (12,161) (6,782) Changes in Assets and Liabilities (Increase)/Decrease in Receivables 22,826 3,797 (Increase)/Decrease in Stocks on Hand 6,324 1,375 (Decrease)/Increase in Creditors & Payables (65,634) 91,895 (Decrease)/Increase in Provisions (14,842) 2,331 __________ __________ Cash Flows from Operations (156,560) 91,750 __________ __________ __________ __________


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INDOOR BOWLS REPORT 2016We would like to thank The Board of Directors and The Sub-Branch for their financial support during 2016. And also, thank you to our Patron, Bill Harrigan, for his efforts to ensure that the sporting bodies remain active and relevant in today’s Club life.Competition winners for 2016 were:Singles: Ernie WhitbournePairs: Kevin Graham and Alby WestonUppers and Downers:Pairs: Boris Itskovic and Brett WilbowUppers Singles: Stan RuglessDowners Singles: Joy HarriganOur AGM was held on Tuesday, March 22nd.The new committee was:President: Vince BuckanSecretary: Philip WalmsleyTreasurer: Ted WilsonCommittee: Rosemary Lingard, Barbara Urquahart, Alby Weston, Tom WhartonSports Council: Philip Walmsley and Tom WhartonPatron: Bill HarriganOne of the highlights of the year was the Indoor Bowls and Outdoor Bowls combined day held on Sunday, September 11th. Thank you to all the members of both Clubs who contributed to making this an enjoyable day.Vince Buckan and Ted Wilson have continued catering regular sausage sizzles throughout the year. Special thanks go to Vince and Ted for their efforts to enhance the social aspects of the club.Good wished for the New Year and thank you to the members who have turned out week after week to make 2016 such a successful year.

Philip Walmsley

Indoor Bowls Secretary


ABN 87 001 057 594

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AMATEUR SWIMMING CLUB REPORT 2016The club has 32 active members and if we could all get down to Bondi at the same time we would have a much more entertaining swimming season. Unfortunately that is not the case but in those weeks where we do have a good roll up it is certainly a lot of fun.In the early part of the year we won the Ray Weekes Trophy, were second in the Waverley Shield and third in the Tobruk Shield. Over all we won the inter club points score for season 2015-2016 which was a good result indeed. Individually Campbell MacKellar won the 100 metres time swim, John Kirby won the 2015 Xmas cup, Joe Gjedsted took out the Ray Giles trophy, Ian Dupree the Steve Malyon trophy and David Gabriel triumphed in the Joe Thomas trophy.We had a good representation at the AIF carnival held at Southport Queensland during March 2016 which all enjoyed but sadly we brought no silver home. Andrew Bell won both the 50 and 30 metre opens and Patricia Kinghorn won the Open Form stroke.In the overall points score David Gabriel won the 50 metres and John Kirby the 30 Metres.At the clubs AGM for the 2015-2016 season Angelina Kane deservedly won Club Person of the Year for her service as Treasurer, Handicapper and Race Setter.The second half of the year, season 2016-2017 opened brightly when we won the inter club Old Rams swim. Then a huge highlight when we attended the 4-way swim at Wentworthville with Bondi Diggers and Maroubra being the other competitors. Bondi Diggers had arranged a bus which made the trip there and back so much easier, thanks to Peter Payne of North Bondi who was our driver for the day. This annual competition coincided with Wentworthvilles 50th anniversary and representatives from Blacktown, Castle Hill, Gladesville, Hornsby and Seven Hills-Toongabbie were present making it a 9 club carnival which was most enjoyable with some very good performances and followed by a memorable function afterwards at the Wentworthville Leagues Club.On a sad note we lost long time club members Ross Phillips and Darryl Barnet who passed on during the year. They were good members and good mates.Our executive Eric Rees, Bob Smith, Angelina Kane and Patricia Kinghorn are keeping the club on course with the assistant of others in the background like Barbara Urquhart who keeps our records and others who do those wee things that every club must have to run successfully.Financially the club is sound. We thank the Board of Club Bondi Junction for their annual grant and those of the staff who help us out. We swim at Bondi baths at 9.30am October to April and would love to see more club members join us.

Don Johnston


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DARTS CLUB REPORT 2016It is with pleasure that I submit the CBJ social darts annual report for 2016. It was a quiet year competition wise. We finished just off the pace in the SEDDA summer competition, which was won by Matraville RSL It was a thrill to play our home games in the main bar area on the new portable board, which CBJ purchased. This created a lot of interest from club members. The winter season was put on hold. In April we played the Diggers at North Bondi, and in a thrilling day of darts, they pipped us at the post, 10/12. Come November, the Diggers could not muster enough players to play us at home, very disappointing indeed. Socially, we played in the sports bar on Friday nights, with varying success. We will endeavour to do more this year. Membership is solid with sixteen registered and financial players. The combined sporting bodies’ presentation day went over very well, and congratulations to John Bolton for a stirling effort with the catering.Big thanks to Bondi Junction Waverley RSL sub-branch along with CBJ and board of directors for their generous financial support which assists us immensely. Thanks also to management and staff for attending to our needs throughout the year. It is very pleasing to hear visiting players comment on the friendly atmosphere and staff in our wonderful club. Clubman of the year is Ray Keyes. President, Tony O’Connor.Secretary/Treasurer, Erle Lindsay.Committee, Aiden Egerton, Ray Keyes, Allan Bourke, Adrian Glavey.Sports Council, Tony O’Connor, Erle Lindsay. In closing, social darts would like to wish all members a healthy and happy 2017.

Erle Lindsay Secretary/Treasurer


ABN 87 001 057 594

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LAWN BOWLS REPORT 20162016 was an eventful year for Club Bondi Junction RSL Lawn Bowls Club.Probably the highlight of the year was Tony Manning constructing an interactive website for the membership at http://clubbondijunctionlawnbowling.blogspot.com.au/. All members are encouraged to familiarise themselves with and make use of their website.Our competition with Scarborough-Wombarra suffered a hiccup last year with our match at Coogee Bowls Club being washed out by torrential rainfall. As a result only one leg of our competition was held last year, at Scarborough, and the day was won by Scarborough/Wobarra.The Wallaby Shield against Victoria Barracks was again won by the Barracks.Presentation Day was well attended and the collective catering by the sporting bodies appeared to be a resounding success.The results for 2016 were:Singles Winner: Ernie Whitbourne Runner-Up: Tom WhartonPairs Winners: Christine Shelley & Tony KrasnodebskiRunners-Up: Geoff Delagarde & Tom WhartonTriples Winners: Tony Manning. Tom Wharton, Di Wilcock Runners-Up: Stan Rugless, Sharon McAfee, Jimmy FrenchAll of this of course was made possible by the financial assistance provided to the Lawn Bowls Club by Club Bondi Junction and the Sub-Branch and their generous financial assistance toward the sporting bodies and keeping them operating as successfully as they do. Many thanks.

Antoni Krasnodebski Secretary



ABN 87 001 057 594

notes

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