JOURNAL AND BALANCE SHEET 2008

Annual General Meeting to be held Sunday 2nd November 2008 at 10.00am

GOULBURN WORKERS CLUB LIMITED

ABN 67 001 003 596

THIRTY SIXTH ANNUAL GENERAL MEETING

(since incorporation)

Notice is hereby given that the Thirty Sixth Annual General Meeting of the Goulburn Workers Club Limited will be held on the 2^nd November, 2008 commencing at 10.00am.  The meeting will be held in the McKell Lounge at the Club, McKell Place , Goulburn , New South Wales .

   AGENDA  

1. To confirm the minutes of the Thirty Fifth Annual General Meeting held on the 4^th November, 2007.

To receive and consider:  

2. Presidents Report.
3. Trading, Profit and Loss Accounts for the year ended 30^th June, 2008.
4. Balance Sheet for year ended 30^th June, 2008.
5. Special Business of which due notice has been received.

FIRST RESOLUTION

That approval is given to the provision of the following benefits to the Directors of the Club in respect to their services as members of the Board of Directors:

1. A Club uniform which includes jacket, trousers, shirt and tie as required.
2. Cost to cover attendance at conferences and any relevant training courses so they may carry out their duties and responsibilities as directors.
3. The reasonable cost of meal and beverages for each Director or Senior Management Officer at an appropriate time before or after a Board or Committee Meeting and which is incurred on the day of that Meeting.  Reasonable expenses incurred by a Director either within the Club or elsewhere in relation to the duties of a Director, including the entertainment of special guests of the Club in relation to Club business and such other promotional activities as may be approved by the Board.  Reasonable expenditure of food and refreshments for Directors and Senior Management Officers in entertaining guests of the Club in the Club dining rooms, where such expenditure is reasonable and properly incurred in the course of that Director’s or Senior Management Officer’s Club duties.

Note to Members

The above resolution ensures that the Club comply with Corporations Law and the Registered Clubs Act.

SECOND RESOLUTION

That the President be paid an honourarium of $194.00 per week in respect of his services as President of the Club, such sum to be paid weekly in arrears.

THIRD RESOLUTION

That each of the Directors be paid an honourarium of $80.00 per month, such sum to be in respect of their services as a member of the Board and to reimburse them their out of pocket expenses in attending such meetings and this is payable quarterly in arrears.

FOURTH RESOLUTION

That Life Membership be granted to Mr Roger Gann on the recommendation of the Members.

FIFTH RESOLUTION

That all Club property within the perimeter of McKell Place and Auburn Street buildings be defined as core property.  Other core property would be the area occupied by the All Weather Hockey Fields and the Hockey Clubrooms.  All other areas at the Arena and the carpark area on the corner of McKell Place and Clifford Street to be noted as non-core property.

Peter J Walker

Chief Executive Officer

By direction of the Board

Dated 2^nd October 2008

Questions Regarding Finance.

Members wishing to ask questions regarding finance at the Annual General Meeting are asked to convey those questions in writing to the Chief Executive Officer by Monday 27^th October, 2008.  This allows staff time to carry out the necessary research.

P J Walker

Chief Executive Officer

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2008

The Directors present their report together with the Balance Sheet as at 30 June 2008 and supporting financial statements for the year ended that date and in accordance with a resolution of Directors report as follows:

DIRECTORS

The names of the Directors of the Goulburn Workers’ Club Limited (“the Club”) during the whole financial year and until the date of this report (except as otherwise noted) are as follows:

COMPANY SECRETARY

The company secretary at the end of the financial year was Mr Peter Walker.  Mr Walker has worked for the Goulburn Workers Club for the past 7 years, performing management roles in the hospitality industry.  Mr Walker was appointed company secretary on 15 March 2002 .

PRINCIPAL ACTIVITIES

The nature of operations and principal activities of the Club during the financial year remained unchanged and were the provision of social, cultural, sporting and entertainment for the welfare of members.

The club is incorporated as a company limited by guarantee in NSW, Australia , having its registered office and principal place of business at McKell Place , Goulburn, NSW.

RESULTS

The deficit for the year was $223,775 (2007 surplus: $360,025).

REVIEW OF OPERATIONS

The Club’s deficit for the year was $223,775 compared to a surplus of $360,025 in the previous financial year.

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2008 (Continued)

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There have been no significant changes during the year in the state of affairs of the Club.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

At the date of this report there does not exist any matter or circumstance that has arisen since the end of the financial year that has or may significantly affect the operations of the Club.

DIVIDENDS

The Club is a company limited by guarantee and accordingly no shares, debentures or options have been issued by the Club and no dividends have been recommended or paid since the commencement of the financial year.

DIRECTORS’ BENEFITS

Since the end of the previous financial year, no director has received or become entitled to receive a benefit, other than a benefit included in the aggregate amount of emoluments received or due and receivable by Directors shown in the accounts or the fixed salary of a full-time employee of the company, by reason of a contract made by the company or a related corporation with the Director or with a firm of which he is a member or with a company in which he has a substantial financial interest.

During the year, the Club paid $3,465 (2007: $4,620) to insure the Directors and Officers of the Club.  The liabilities insured against include costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought against the officers and Directors of the Club in their capacity as officers and Directors of the Club.

It is also noted that;

·        There were no occasions where Directors reported a material personal interest in a matter relating to the Club’s affairs;

·        There were no occasions where Directors or top executives reported a financial interest in a hotel in NSW;

·        There were no grants made out to an affiliated body of the Club in the past 12 months;

·        No employees or Directors undertook overseas travel on behalf of the Club during the year;

·        No loans were granted to Directors or employees at any stage during the year;

·        No close relatives of Directors or top executives received, or became entitled to receive any remuneration during the year;

·        There was one contract negotiated or renewed with a top executive during the year;

·        There was no Controlled Contract approved by the Board and forwarded to the Director of Liquor and Gaming;

·        Total profits made from gaming for the 12 months ending 30 June 2008 were $3,471,389;

·        The total amount applied to community development and support during the twelve months to June 2008 was $260,473;

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2008 (Continued)

DIRECTORS’ BENEFITS (Continued)

·        There were no legal settlements made with any members of the board or any employees during the year;

·        There were no legal fees paid on behalf of the board or any employees during the year, and;

·        No gifts from affiliates or contractors of the Club were received with a total value in ex ces s of $500.

CONSULTANTS USED BY THE CLUB

During the financial year the Club used a number of consultants, the following received in ex ces s of $30,000:

Visionads Pty Ltd received $34,700 (2007: $40,640).

Visionads provided analysis and advice on the operations of the Club’s poker machines as well as market research, data management and information technology servi ces . Visionads provided a facilitator at Board and management workshops and assisted the Club to develop, implement and monitor policies and procedures in a range of areas, with a focus on food safety. The above fees also include travelling costs and out of pocket expenses.

Grant Business Management: $53,455 (2007: $53,326).

Grant Business Management provided data pro ces sing, bookkeeping, financial accounting and management accounting servi ces .

Grant Business Management provided monthly Profit and Loss Statements for each section of the Club, monthly Balance Sheets, bank reconciliations, management accounts for executives and the board and preparation of documents and financial records for the annual audit. Business Activity Statements and quarterly bank financial data is also provided.

The fee includes attendance at meetings.

DIRECTORS’ BENEFITS

Board Meetings

The Club held   4 board meetings during the year ended 30 June 2008.  The number of meetings attended by each Director while in office were:

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2008 (Continued)

DIRECTORS’ ATTENDANCE AT MEETINGS (Continued)

Finance Meetings

The Club held 4 finance subcommittee meetings during the year ended 30 June 2008. The number of meetings attended by each Director while in office were:

Combined Board and Finance Meetings

The Club held   8 combined board and finance meetings during the year ended 30 June 2008. The number of meetings attended by each Director while in office were:

Sundry sub-committees who held meetings at various times throughout the year:

Executive Committee: A Dawson, B Bugden, B Dell, G McAleer, T McEachan

Building Committee: A Dawson, B Bugden, G McAleer, M Humphries, W Sharwood ,

House Committee: A Dawson, B Dell, G McAleer, T McEachan, W Sharwood

Arena Committee: B Bugden, B Dell, R Pollack, W Sharwood

Gaming/Finance Committee: A Dawson, B Bugden, B Dell, M Humphries, G McAleer,
W Sharwood ,

Sports Council Delegates: B Bugden, B Dell, R Pollack

Poker Machine Committee: A Dawson, B Bugden, W Sharwood , Reserve B Dell

DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2008 (Continued)

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 follows this Directors’ Report.

On behalf of the Board

Goulburn             21 August 2008

AUDITOR’S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF

GOULBURN WORKERS’ CLUB LIMITED

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2008 there have been:

i.        no contraventions of the independence requirements of the Corporations Act in relation to the audit; and

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

Duesburys Nexia                                                                                                                     R C Scott

Canberra , 21 August 2008                                                                                                          Partner

BALANCE SHEET

   AS AT 30 JUNE 2008

S TATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2008

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2008

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2008

NOTE 1 STATEMENT OF ACCOUNTING POLICIES

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

Goulburn Workers’ Club Ltd (the Club) is a company limited by shares, incorporated and domiciled in Australia . The financial report covers the Club as an individual entity.

The financial report of the Club complies with all Australian equivalents to International Financial Reporting Standards (AIFRS) in their entirety.

The following is a summary of the material accounting policies adopted in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation

Reporting Basis and Conventions

The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Accounting Policies

(a)     Income Tax

The Club is exempt from income taxation under the relevant provisions of the Income Tax Assessment Act 1997.

(b)          Inventories

Inventories are measured at the lower of cost and net realisable value. The cost includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs.

(c)     Property, Plant and Equipment

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

Where a revaluation has been performed, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Property, Plant and Equipment (cont’d)

The carrying amount of property, plant and equipment is reviewed at each balance sheet date 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.

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

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

Increases in the carrying amount arising on revaluation of assets are credited to a revaluation reserve in shareholder’s equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the income statement.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

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

Depreciation

The depreciable amounts of all fixed assets including capitalised leased assets are depreciated on either a straight line or diminishing value basis over their estimated useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

(d)     Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the entity are classified as finance leases.

Finance leases are capitalised, recording an asset and a liability at the lower of the amounts equal to the fair value of the leased asset or the present value of the minimum lease payments, including any guaranteed residual.  Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated over their estimated useful lives.

Leases (cont’d)

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

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

(e)     Financial Instruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value through profit and loss

A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139:  Recognition and Measurement of Financial Instruments.  Gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments and are stated at amortised cost using the effective interest rate method.

Held-to-maturity investments

These investments have fixed maturities, and it is the intention to hold these investments to maturity. Any held-to-maturity investments held are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories.  Available-for-sale financial assets are reflected at fair value.  Unrealised gains and losses arising from changes in fair value are taken directly to equity.

Financial liabilities

Financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Financial Instruments (cont’d)

Fair Value

Fair value is determined based on current bid prices for all quoted investments.  Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arms length transactions, reference to similar instruments and option pricing models.

Impairment

At each reporting date, an assessment is made of 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.

(f)      Impairment of Assets

At each reporting date, the Club reviews the carrying values of its 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.

Where it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the cash generating unit (CGU) to which the asset belongs is estimated.

(g)     Intangible Assets

Intangible assets acquired separately are initially measured at cost. The Club’s intangible assets are comprised of poker machine entitlements. The poker machine entitlements are capitalised when purchased at cost. The entitlements have an infinite useful life as there is no expiry date attached to the entitlements.

(h)     Employee Benefits

Provision is made for the liability for employee benefits arising from services rendered by employees to balance date.  The benefits expected to be settled within one year to employees for their entitlements have been measured at the amounts expected to be paid including on-costs and are disclosed as current liabilities.  Employee benefits payable later than one year are measured at the present value of the estimated future cash outflows to be made in respect of those benefits. 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 upon historical data.

(i)      Provisions

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investment with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities on the balance sheet.

(k)     Revenue

Revenue from poker machine clearances is the amount of monies collected from the poker machine, net of the amount paid out as winnings to customers.

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

Revenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Income from grant funding is recognised as the relevant grant funding requirements are satisfied Grant funding received but not yet recognised as revenue is deferred to the balance sheet as income in advance.

All revenue is stated net of the amount of goods and services tax (GST).

(l)            Goods and services tax (GST)

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

Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(m)    Comparatives

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

NOTE 1      STATEMENT OF ACCOUNTING POLICIES (CONT’D)

Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Club.

The directors do not believe that there were any key estimates or key judgements used in the development of the financial report that give rise to a significant risk of material adjustment in the future.

NOTE 2      COMPANY LIMITED BY GUARANTEE

The liability of members is limited.  Every member of the Club undertakes to contribute to the assets of the Club in the event of the same being wound up during the time that he or she is a member or within one year afterwards for the payment of the debts and liabilities of the Club contracted before the time at which he/she ceases to be a member and of the costs, charges and expenses of winding up the same and for the adjustment of the rights of the contributories amongst themselves such amount as may be required not exceeding twenty dollars.