Club Code of Practice and Best Practice Guidelines

Transcription

For more information about the Club Code of Practice and
Best Practice Guidelines, contact:
The Code Administrator at ClubsNSW on 9268 3000 or
by email [email protected]
TABLE OF CONTENTS
CLUB CODE OF PRACTICE
PART A: INTRODUCTION AND APPLICATION
2
What is the Club Code?
Why is the Code Necessary?
Objectives of the Code
Scope of the Code
Conflict with Legislation
Best Practice Guidelines
Citation
Definitions
PART B: CODE COMMITMENTS
4
Legal Obligations
Club Constitutions
Conduct of Directors, Management and Staff
Commitment to the Communities in which Clubs are Located
Contracts with Key Executives
Human Resource Management and Industrial Relations
Procurement of Goods and Services and Capital Works
Responsible Provision of Gambling
Responsible Service of Alcohol
Financial Management and Reporting
Privacy and Confidentiality
PART C: MONITORING AND ADMINISTRATION
PART D: CODE ENFORCEMENT - RESPONSIBILITY, REVIEWS AND SANCTIONS
9
10
Responsibility of Clubs to Co-Operate with the Code Authority
Dealing with Alleged Breaches
Sanctions that may be Imposed by the Code Authority
Reporting
Review of Sanctions
Failure to Comply
Naming and Enforcement of Sanctions
APPENDICES
13
BEST PRACTICE GUIDELINES
14
MAJOR CAPITAL WORKS
15
PROCUREMENT OF GOODS AND SERVICES
24
BENCHMARKING CLUB PERFORMANCE
29
REMUNERATION OF CLUB EXECUTIVES
34
OVERSEAS TRAVEL
38
BOARD OPERATION
43
Appendix 1: Model Board Charter
Appendix 2: Model Board Agenda
48
49
FINANCIAL REPORTING
54
COMMUNITY SUPPORT
57
COMPLAINTS HANDLING
65
CONDUCTING DISCIPLINARY PROCEEDINGS
67
CONDUCT OF BOARD ELECTIONS
72
© ClubsNSW, September 2014
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PART A
INTRODUCTION AND APPLICATION
WHAT IS THE CLUB CODE?
OBJECTIVES OF THE CODE
1.
7.
A statement of common standards of
conduct for all Clubs that are
members of ClubsNSW.
8.
2.
An expression of the Club Industry’s
underlying values of honesty, fairness,
integrity, compassion and community.
3.
A single, plain-English point of
reference for the duty of care and
due-diligence expectations of Club
communities served.
WHY IS THE CODE NECESSARY?
4.
5.
The governance demands upon Clubs
continue to grow and become more
complex. The conduct of Club
Directors and managers is closely
scrutinised by Club members,
regulators, policy makers, trade
unions and the media. By adhering to
the Code, Clubs can have greater
confidence that they are meeting their
responsibilities to all stakeholders.
Club Directors, management and staff
are custodians of significant member
assets and have an obligation to
ensure that the administration and
management of the Club is conducted
with efficiency, fairness and integrity.
In particular, the service of food and
alcohol, and provision of gambling and
other entertainment facilities demand
high standards of responsible
governance and administration. The
Code reminds all those in leadership
positions of their obligations and
provides a framework for effective
Club performance.
9.
To
promote
consistently
high
standards of practice across the Club
Industry;
To bolster pride and confidence
amongst Club Directors, managers,
employees, members, suppliers and
volunteers;
To increase community trust in the
effectiveness, accountability and
transparency of Club administration;
and
10. To guide and support Clubs in fulfilling
their mission and their obligations to
all stakeholders.
SCOPE OF THE CODE
11. This Code of Practice sets standards of
conduct for Clubs who are members
of ClubsNSW.
12. An alleged breach of the Code by a
Club that is a member of ClubsNSW
will be dealt with in accordance with
Part D of the Code.
CONFLICT WITH LEGISLATION
13. Where there is any conflict or
inconsistency between the Code and
any
Commonwealth
or
State
legislation
or
regulation,
that
legislation or regulation will prevail to
the extent of the conflict or
inconsistency.
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INTRODUCTION AND APPLICATION
‘Code Administrator’ means the
individual authorised to investigate
and prepare a report to the Code
Authority on complaints against Clubs
involving alleged breaches of the
Code;
14. ClubsNSW periodically issues Best
Practice Guidelines for key areas of
Club operation. By following them,
Clubs can minimise their risk of
breaching the Code, or government
regulations. (See Appendix 2 for a list
of Best Practice Guidelines).
‘Code Authority’ means the authority
established under clause 51 of the
Code;
‘Senior Management’ means the
CEO/Secretary
Manager/General
Manager and other senior executives
of a Club;1
‘Natural Justice’ means the right to a
fair hearing free of bias; individuals
should not be penalized by decisions
affecting their rights or legitimate
expectations unless they have been
given prior notice of the matter, a fair
opportunity to answer it, and the
opportunity to present their own case.
CITATION
15. This Code may be cited as the Club
Code of Practice.
DEFINITIONS
16. In this Code, unless the context
requires otherwise:
‘Affiliates’
means
affiliated
Associations including: Bowls NSW;
Golf NSW; RSL & Services Club
Association; Leagues Clubs Australia;
and the Federation of Community,
Sporting and Workers Clubs;
‘Patron’ means a person visiting a
Club or using a Club’s facilities
including, but not limited to, a Club;
‘Staff’ means employees of a Club
other than the management.
‘Club
Managers’
Association
Australia’ is a union representing
professional managers of Clubs;
‘Systemic Failure’ means a pattern of
conduct or repeated Code breaches,
that points to a serious and/or
structural flaw in organisational
practice.
‘Club Industry’ means all licensed
Clubs in New South Wales, whether or
not they are members of ClubsNSW;
‘ClubsNSW’ means the Registered
Clubs Association of NSW, a State
organisation registered under Section
222 of the Industrial Relations Act.
ClubsNSW is the peak body for the
Club Industry, representing registered
Clubs in New South Wales;
‘Code’ means this Code of Practice as
revised and published by ClubsNSW
from time to time;
1
While there is normally a clear delineation
between elected officials and paid staff, in some
smaller clubs that rely heavily on volunteers to
fulfil management duties, Board Directors may
sometimes be considered senior management.
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PART B
CODE COMMITMENTS
LEGAL OBLIGATIONS
of natural justice in dealing with
disciplinary matters.3
17. Because the provision of gambling,
food services and alcohol are core
activities, we accept that the Club
Industry is highly regulated and that
we have a responsibility to be fully
informed as to our legal compliance
obligations.
18. In particular, we will ensure that our
Directors, management and staff are
informed
about
the
primary
instruments
regulating
Clubs,
particularly the Registered Clubs Act
1976
(and
Regulations),
the
Corporations Act 2001, the Gaming
Machines Act 2001 (and Regulations)
and the Liquor Act 2007 (and
Regulations).
19. We will provide adequate training and
supervision to ensure compliance with
all relevant laws relating to the Club
Industry.2
22. Where there is any inconsistency
between our Club constitution and
any State or Federal legislation, the
legislation will prevail.4
23. We are committed to promoting fair
and democratic elections and
maximising member involvement by
adhering to relevant law and following
appropriate procedures for the
conduct of Club elections.5
24. We will have in place speedy,
responsive, accessible and userfriendly procedures for dealing with
complaints.
CONDUCT OF DIRECTORS,
MANAGEMENT AND STAFF
25. We will pursue the aims and purpose
of our Club by:
CLUB CONSTITUTIONS
a.
20. We will have, in our constitution or
elsewhere, a clear expression of our
aims, purpose and governance
structure as an organisation. This will
be clearly communicated to members.
b.
21. We will have procedures in our
constitution
for
dealing
with
unacceptable behaviour by patrons.
We are committed to ensuring that
these procedures are faithfully
followed and will apply the principles
3
4
5
2
See Appendix 1.
making decisions that are
consistent with these
aims/purpose and the interests of
members;
complying with any relevant
legislative, industrial and
administrative requirement and
keeping up to date with any
changes to these requirements;
For assistance in conducting disciplinary
proceedings refer to the Guideline for the
Conduct of Disciplinary Proceedings.
Note: there may be instances where the Club
constitution is silent on matters that are
addressed in legislation or regulations. Club
Directors and Managers should take steps to
ensure that procedures contained in the club
constitution are consistent with statutory
requirements.
See: Guideline for the Conduct of Board
Elections.
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CODE COMMITMENTS
c.
d.
e.
f.
g.
h.
i.
maintaining adequate
documentation to support any
decisions made;
treating each Club member and
employee with due courtesy and
respect;
providing access to continuing
professional development for
managers, Directors and staff;
achieving operating efficiencies in
accordance with Board policies;6
obtaining value for Club money
spent;7
contributing to a safe, healthy
and discrimination-free Club
environment; and
not taking or seeking to take
improper advantage of any Club
information gained in the course
of our appointment (in the case
of Directors) or employment (in
the case of managers/staff).8
26. We will deal promptly and effectively
with information received that relates
to matters that may lead to a material
loss to our Club.
COMMITMENT TO THE COMMUNITIES
IN WHICH CLUBS ARE LOCATED
27. We acknowledge our responsibility to
the community in which our Club is
located in relation to key revenuegenerating activities, in particular the
provision of gambling and alcohol9.
6
7
8
9
Benchmarks for operating efficiencies are
contained in the Guideline for Benchmarking
Club Performance.
Examples of waste and extravagance may
include, but are not limited to: private use of Club
vehicles, telephone or other assets; or sending
more representatives than necessary on
overseas study tours.
Examples of taking improper advantage of Club
information may include: benefiting (either
themselves, a family member or an associate)
improperly from the disposal of Club assets such
as equipment or land; the improper awarding of
a contract for the provision of goods and
services; or the improper awarding of a contract
for major capital works.
See also clauses 39 and 40.
28. We will comply with all relevant noise
control
measures
and,
when
necessary, work with local councils
and the Environment Protection
Authority to resolve noise-related
issues.
29. As a not-for-profit community
organisation, we will meet our
ClubGRANTS 10 and other social
obligations and maximise our financial
commitment to and support for
community projects within the means
of the Club.
CONTRACTS WITH KEY EXECUTIVES
30. We will ensure that all senior
management have a contract that
details their terms of employment,
including roles and responsibilities,
the form of their remuneration, and
an appropriate termination clause.
These contracts will be reviewed by
our legal advisors before being
approved by our Club’s Board of
Directors.11
HUMAN RESOURCE MANAGEMENT
AND INDUSTRIAL RELATIONS
31. We are committed to promoting best
practice human resource management
and industrial relations between our
Club management and employees.
With the full support of the Board of
Directors, our Club manager(s) will
ensure the appropriate terms and
conditions of the Award and other
relevant industrial instruments are
10
11
The ClubGRANTS Scheme facilitates clubs in
NSW contributing to the provision of front-line
services to their local communities and helps
ensure that the disadvantaged in the community
are better positioned to benefit from the
substantial contributions made by those clubs.
An employment contract template is available
from ClubsNSW.
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applied at all times. This includes
effectively managing disputes that
may occur in the workplace from time
to time.12
32. We will make the continuing
professional development and training
of our Club managers and other
employees a priority.
PROCUREMENT OF GOODS & SERVICES
AND CAPITAL WORKS
33. We are committed to ensuring that
Club procurement of goods & services
and capital works represents quality
and good value, is subject to a proper
tendering process with competitive
quotes, and is done in the best
interests of the Club and its members.
34. We have in place and are committed
to following a sound framework for
major procurements 13 of goods &
services and capital works based on
the following criteria:
a)
b)
c)
12
13
All major procurements and
capital works will be properly
defined,
documented,
cost
planned and approved in
accordance with Board policy;
All major procurement and
capital works projects will be
subject to a risk assessment
analysis; and
All major procurements and
capital works will be subject to
appropriate written contracts
with the chosen supplier in
accordance with Board policy.
Nothing in this Code applies to the resolution of
industrial disputes or employment related
disputes between a Club and its employees.
For assistance in determining what constitutes
major procurements refer to the Guideline for the
Procurement of Goods, Services and Major
Capital Works.
35. If a Director of our Club has a real or
potential material personal interest
relating to the Club’s procurement of
goods & services or major capital
works, the nature of that interest will
be disclosed at the earliest possible
meeting of the Board and any
conflicted Director(s) will absent
themselves
from
the
Board’s
consideration of the procurement or
project.
36. Properly
documented
selection
criteria will be used to appoint
suppliers and service providers for
major procurements.
37. The Board of Directors will act
diligently and in the best interests of
the Club in approving and overseeing
procurement of goods & services and
major capital works.
RESPONSIBLE PROVISION OF
GAMBLING
38. We support the provision of a
responsible gambling environment for
all patrons of our Club by:
a)
b)
c)
Informing and training staff to
ensure they are familiar with all
legislative requirements of
licensed venues that offer their
patrons gambling activities;
Ensuring all staff who have
gambling-related duties are
trained in the Responsible
Conduct of Gambling (RCG) and
can respond appropriately to a
request for assistance from a
problem gambler or a concerned
other;
Implementing policies to
encourage responsible practices
in promotions related to
gambling;
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CODE COMMITMENTS
d)
e)
Informing patrons and staff of the
Club’s responsible gambling
policy and the availability of
support services for problem
gamblers; and
Establishing a responsible
gambling environment where
anybody requiring assistance with
a gambling problem will be
handled with respect and
discretion, and referred to
services that can assist (such as a
local cost-free gambling
counselling service &/or selfexclusion).
g)
to minors and intoxicated
persons; and
Not supporting any pricing
practice which encourages the
excessive consumption of alcohol.
FINANCIAL MANAGEMENT AND
REPORTING
40. Financial management practices will
be consistent with the appropriate
standards.15
41. Financial decisions will be consistent
with the Board’s approved goals and
approved budgets.
RESPONSIBLE SERVICE OF ALCOHOL
39. We will demonstrate our commitment
to the responsible service of alcohol
by:
a)
b)
c)
d)
e)
f)
14
Providing approved training of
management and staff in the
responsible service of alcohol;14
Refusing to serve alcohol to
persons who are obviously or
visibly affected by alcohol;
Avoiding the promotion of
alcohol in a way that could
encourage minors to seek to
purchase or to consume alcohol;
Avoiding the promotion of
alcohol in a way that could
encourage the excessive
consumption of alcohol;
Refusing alcohol service to under
age persons and requiring the
presentation of Proof of Age and
other approved forms of
identification before providing
services to persons we suspect of
being minors;
Making Club patrons aware of
their responsibility under the law
in respect of the supply of alcohol
Trainers must be approved by the Office of
Liquor, Gaming and Racing.
42. The Board will oversee and ensure
adherence to approved budgets.
43. The Board will establish boundaries
and limits regarding:
a)
b)
c)
d)
e)
f)
capital investments;
remuneration and benefits;
protection of assets;
tendering;
cost containment; and
efficient use of labour.
44. The Board will obtain from
management prompt and detailed
reporting where limits and boundaries
are exceeded.
45. Financial reports that accurately
reflect the true financial position of
the Club will be provided for each
Board meeting.
46. The operation of financial systems and
financial safeguards will be subject to
external audit at least on an annual
basis.
15
See: Guideline for Financial Reporting.
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PRIVACY AND CONFIDENTIALITY16
47. We acknowledge that, as a
membership-based organisation, our
Club is entrusted with personal
information. We will comply with our
duties under the Privacy Act 1998 (as
amended in 2013.
16
See Section 16: Anti Discrimination and Privacy
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PART C
MONITORING AND ADMINISTRATION
48. A Code Authority and Code
Administrator will oversee compliance
with the Code.
49. The Code Authority is appointed by
the Board of ClubsNSW. It is made up
of an independent Chair and two or
more persons selected for their
knowledge of the Club Industry and its
regulatory framework, including the
Code of Practice. All determinations
are made by consensus agreement.
50. The Code Administrator
appointed by ClubsNSW.
will
be
51. The Code Authority will report to the
Board of Directors of ClubsNSW
annually or more frequently, if
deemed necessary.
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PART D
CODE ENFORCEMENT - RESPONSIBILITY,
REVIEWS AND SANCTIONS
RESPONSIBILITY OF CLUBS TO COOPERATE WITH THE CODE AUTHORITY
52. Our Club will ensure that it:
a)
b)
co-operates with the Code
administrator
and
Code
Authority,
and
provides
information about any alleged
breach of the Code; and
monitors its compliance with the
Code.
DEALING WITH ALLEGED BREACHES17
53. The Code administrator will receive
complaints about alleged breaches of
the Code by Clubs and will consult
with Clubs in respect of the alleged
breaches and make recommendations
to the Club, if necessary, about the
alleged breach and the Club’s
compliance with the Code.
54. The Code administrator may receive
submissions
from
both
the
complainant and the Club, as well as
any other individual or organisation
deemed relevant, about alleged
breaches of the Code. The Club will
have an opportunity to make
representations to the Code Authority
in respect of the steps taken to
address the matter and to prevent the
alleged breach or breaches recurring.
This information will be compiled by
the Code Administrator and provided
to
the
Code
consideration.
The scope of Code enforcement procedures is
limited to alleged breaches of the Code. It does
not include resolution of complaints by
individuals or organisations against Clubs which
would normally be dealt with by the Club’s
internal complaints handling process. See:
Guideline on Complaints Handling.
for
55. The Code Administrator will provide
reports to the Code Authority
concerning the facts of alleged
breaches of the Code.
56. The Code Authority will determine the
outcome of alleged breaches of the
Code.
57. Where a report is made under clauses
59 and 60, the Code Administrator will
advise the Club of the Code
Authority’s determination.
58. If, after considering representations
from the Club, the Code Authority is of
the opinion that the steps taken for
rectification or to stop the breach or
breaches recurring are inadequate,
the Code Authority will advise the
Board of the Club in writing and give
notice to the Club whether or not it
proposes to impose sanctions on the
Club for non-compliance with the
Code and what the sanctions will be.
SANCTIONS THAT MAY BE IMPOSED
BY THE CODE AUTHORITY
59. If the Code Authority finds that a Club
has:
a)
b)
17
Authority
committed a breach of the Code;
or
committed a series of breaches of
the Code indicating systemic
failure, it may recommend one or
more of the following sanctions:
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CODE ENFORCEMENT - RESPONSIBILITY, REVIEWS AND SANCTIONS











that the matter be rectified
in line with the Code
Authority’s determination;
that particular remedial
steps be taken by the Club in
accordance with a specified
timetable;
that staff, management or
Director training be
undertaken;
that an apology be offered (if
appropriate);
that financial compensation
be made (if appropriate);
that the Club perform a
specified community service;
that a compliance audit be
undertaken;
that corrective advertising
be placed;
that the Club be named
either immediately and/or in
the ClubsNSW annual report
as having breached the
Code;
recommend to the Board of
ClubsNSW that the
membership of the
offending Club be cancelled;
or
refer the matter to the
Minister for Gaming and
Racing or other Government
Authority for further action.
60. Where the Code Authority is of the
view that a breach of the Code has not
occurred, then both the complainant
and the Club are advised and the
matter is concluded. Where the Code
Authority is of the view that a breach
of the Code has occurred, and the
steps taken to rectify the matter and
prevent its recurrence are satisfactory,
the Code Authority will advise both
the complainant and the Club in
writing of that conclusion.
61. The Code Authority will not impose
sanctions for at least 20 business days
after notice under clause 63 has been
given. The Club will have an
opportunity during this period to
make further representations for the
Code
Authority’s
further
consideration. If at the end of that
period the Code Authority is still of the
opinion that:
a)
b)
there has been a breach or a
systemic failure; or
there has been a breach or a
systemic failure and the steps
taken for rectification and to stop
the breach or breaches recurring
are inadequate;
the Code Authority may impose
further sanctions.
62. When imposing any sanctions on a
Club, the Code Authority will have
regard to:
a)
b)
c)
the objectives and purpose of the
Code; and
the severity of the breach of the
Code and the appropriateness of
the sanction;
the degree to which the Club
cooperated with the Code
Administrator and the Code
Authority during the investigation
and adjudication of the matter.
63. Where a Club does not cooperate with
the Code Administrator or does not
comply with the determination of the
Code Authority, it will be considered a
serious breach of the Code regardless
of the nature of the original
complaint. The Code Authority may
avail itself of any sanction under
clause 59.
| 11
REPORTING
64. The Code Authority may report to the
Board of ClubsNSW or an appropriate
agency in respect of its activities but it
shall not publicly disclose the name of
a Club that is alleged to have breached
the Code or on whom sanctions have
been imposed, or any information that
might identify the Club, unless it
recommends that the Club be named
immediately or in the annual report or
unless the Club consents.
65. Any complaint against a Club that is
not a member of ClubsNSW will be
referred to the NSW Office of Liquor,
Gaming and Racing or other relevant
body.
REVIEW OF SANCTIONS
66. A Club that is sanctioned under this
Code may request that the sanction be
reviewed by the Board of ClubsNSW
and, in that case, if the Board
considers that there are grounds for
review, the Board may refer the
matter to the Code Authority for
reconsideration.
relation to the matters contained in
the report.
NAMING AND ENFORCEMENT OF
SANCTIONS
69. The Code Authority, after considering
any submission made by the Club
under clause 68, may determine to
name a Club immediately or in the
annual report as having failed to
comply with the Code and set out the
nature of the non-compliance in a
report to the Board of ClubsNSW.
70. The Board of ClubsNSW may direct the
Code Administrator to take such steps
as it believes appropriate to enforce
any sanctions imposed by the Code
Authority. The Board of ClubsNSW
may take other disciplinary actions
against the member in accordance
with the ClubsNSW constitution.
FAILURE TO COMPLY
67. The Code Authority will report to the
Board of ClubsNSW any failure by a
Club to comply with a sanction
imposed on it and recommend action
to be taken by the Board.
68. A copy of the report to the Code
Authority by the Code Administrator
will be given to the Board of the Club
and the Club is entitled within 20
business days of receiving that report
or in such further period as the Code
Authority may permit to make a
submission to the Code Authority in
| 12
APPENDICES
APPENDIX 1
Listed below are the main Acts that apply to all Clubs.
Note: this is not an exhaustive list and Acts are not presented in alphabetical order.
NSW STATE LEGISLATION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Registered Clubs Act 1976
Gaming Machines Act 2001
Gaming Machines Tax Act 2001
Liquor Act 2007
Charitable Fundraising Act 1991
Fair Trading Act 1987
Industrial Relations Act 1996
Annual Holidays Act 1944
Long Service Leave Act 1955
Lotteries and Art Unions Act 1901
Public Lotteries Act 1996
Racing Administration Act 1998
Work Health and Safety Act 2011
Apprenticeship and Traineeship Act 2001
Unlawful Gambling Act 1998
Smoke-free Environment Act 2000
Food Act 2003
Anti-Discrimination Act 1977
COMMONWEALTH LEGISLATION
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
National Gambling Reform Act
Corporations Act 2001
Privacy Act 1988
Trade Practices Act 1974
Income Tax Assessment Act 1997
A New Tax System (Goods and Services Tax) Act 1999
Anti-Money Laundering and Counter-Terrorism Financing Act 2006
Sex Discrimination Act 1984
Disability Discrimination Act 1992
Registered and Licensed Clubs Award 2010
| 13
| 14
Best Practice Guideline:
MAJOR CAPITAL WORKS
1.
PURPOSE
This Guideline aims to assist ClubsNSW
Members dealing with major capital works
projects by:

setting out the main steps that should
be followed in evaluating, planning
and managing capital works projects;

considering the key questions that
need to be made at various stages;
and

describing the main criteria for
selecting outside experts to assist with
the project.
Given the wide variety of types and sizes of
Clubs, the term “major” is a relative one.
By the same token, projects vary in
complexity, size and importance.
The resources spent on appraisal of
projects should be in proportion with the
cost of the project, its degree of
complexity, risk and the size of the Club. In
general, more detailed appraisal criteria
should be applied to projects which:
‘Fixed assets’ are tangible Club assets such
as land, Club buildings and facilities,
accommodation and sporting facilities.
‘Major capital works’ are improvements,
replacement or additions to Clubs’ fixed
assets.
3.
BACKGROUND
Among the most important decisions Clubs
make are those relating to refurbishments,
extensions or other major capital works.
Clubs rely on improvements to fixed assets
such as buildings, plant and equipment,
parking, etc to provide services to
members and attract new patronage.
Major capital works involve a combination
of materials, plant, equipment and labour
and can include, for example:

New equipment (e.g. air conditioning);

Refurbishments
kitchen fit-out);

Extensions; and

Redevelopment of Club land (e.g.
residential development).
GUIDING PRINCIPLES
(e.g.
carpeting,

are estimated to have a capital cost in
excess of $500,000 or 2.5% of last
audited total revenue;

involve complex or specialised issues
or untried technology; or
4.

are unique and unprecedented in the
Club industry.
Major
capital
works
should
be
commissioned and implemented in the
best interests of Club members in line with
these principles:
2.
DEFINITIONS

‘Disposal of core property’ is defined as per
the Registered Clubs Act 1976.
Projects
should
be
properly
researched and analysed in respect to
market feasibility and the long term
strategic position of the Club;
‘EBITDA’ means earnings before interest,
taxes, depreciation and amortisation.
| 15

Projects should be properly defined,
documented, cost planned and
approved;

Projects should be subject to
appropriate contracts with the chosen
supplier;

Clubs should seek legal advice on
contracts associated with major
capital works;

Club members should be provided
information and given opportunities
to comment at regular intervals during
the planning and execution of major
capital works projects;

The Board of Directors should act
diligently and in the best interests of
Club members in approving and
overseeing major capital works
projects;

Directors should avoid any conflicts of
interest in relation to a capital works
project of the Club;

Proper processes should be used to
appoint third parties. Where non-price
criteria are used to select these third
parties, these criteria should be
documented; and

Legal requirements should be adhered
to.
5.
DISPOSAL OF CORE PROPERTY
There are controls on the disposal of core
property of a Club18. If the project involves
the disposal of core property, it should be
conducted in accordance with Sections 41J
of the Registered Clubs Act 1976.
Since 2004, section 41J of the Registered
Clubs Act has imposed very strict controls
on the disposal of Club land. Section 41J
18
Note: the Registered Clubs Act 1976 defines
core property as a Club’s defined premises (the
Club house), any facilities provided for members
and guests (car parks, bowling greens, golf
courses etc), but allows Members to declare
property as ‘non-core’.
includes the concepts of “core property”
and “non-core property”. All land owned
or occupied by a Club is classified as either
core property or non-core property for the
purposes of section 41J.
 Core property is:
- the defined premises/licensed
premises of the Club, that is the
Clubhouse;
- any facility provided by the Club
for the use of members of the
Club and their guests.

This is intended to catch facilities such
as car parks, bowling greens, golf
courses and tennis courts. However, it
has potentially wider implications and
may include other land; and

any other property which the
members at a general meeting, by a
resolution passed by a simple
majority, declare to be core property.
In other words, any land owned by the
Club can be designated as core
property by the members.
Non-core property is all land of the Club
which is not core property.
While these definitions of core and noncore property are contained in section 41J,
the section also provides that the ordinary
members of a Club can pass a resolution at
a general meeting to have core property
declared to be non-core property and vice
versa. Accordingly, a block of land which is
used for the Clubhouse or facilities such as
a golf course or bowling green or Club car
park is core property. However, the
ordinary members could pass an ordinary
resolution to have the land declared to be
non-core property.
The relevance of the distinction between
core and non-core property relates to how
land can be disposed of. A Club can only
dispose of core property in accordance
with section 41J(3) which requires:
| 16
MAJOR CAPITAL WORKS

the disposal to be approved by a
resolution passed by a majority of the
ordinary members of the Club;

the disposal must be by way of public
auction or open tender conducted by
an independent real estate agent or
auctioneer; and

ii.
iii.
iv.
the property must be valued by a
registered valuer within the meaning
of the Valuers Act 2003.
“Dispose of property” in section 41J means
to “sell, lease or licence the property or to
otherwise deal with the property in such
manner as may be prescribed by the
Regulation”.
This provides for a broad definition of
disposal. Clubs need to be aware whenever
they are dealing with any of their core
property that a transaction may be a
disposal for the purposes of section 41J,
even if the Club does not believe it is
disposing of any of its land.
v.
vi.
Exceptions to section 41J
Clause 19 of the Registered Clubs
Regulation sets out exceptions to section
41J of the Act. If an exception listed in the
Regulation applies to a particular
transaction, section 41J will not apply to
the disposal of that core property. Of
course, if the Club is disposing of non-core
property section 41J will not apply at all.
The exceptions to section 41J in clause 19
are expressed as follows:
vii.
Section 41J (3) of the Act does not apply in
relation to the leasing or licensing of any
core property of a registered Club if the
lease or licence:
i.
relation to the disposal of any core
property of a registered Club in any of the
following circumstances:
i.
the property is being leased or
licensed for a period not exceeding 10
years on terms that have been the
subject of a valuation by a registered
valuer,
the property is being disposed of to a
wholly owned subsidiary of the Club,
the property is being leased or
licensed to a telecommunications
provider for the purposes of a
telecommunication tower,
the disposal of the property involves
calling for expressions of interest and
a subsequent selective tendering
process, and the disposal and disposal
process has been approved by a
majority vote at a general meeting of
the ordinary members of the Club,
the property is being sold by private
treaty, but only if it failed to sell at
public auction or open tender
following compliance with the
requirements of section 41J (3) of the
Act,
the terms and nature of the disposal
(including details of the parties,
property, price and valuation) are
disclosed to the ordinary members of
the Club, and the disposal is approved
at a general meeting of the ordinary
members of the Club,
the Director has, on application by the
registered Club, approved of the
property being disposed of otherwise
than in accordance with section 41J
(3) of the Act.
ii.
is granted to a person for the purpose
of enabling the person to provide
goods or services exclusively to
members of the Club and their guests
and to other persons attending the
Club in accordance with a functions
authority held by the Club under
section 23 of the Act, or
is granted to a person for the purpose
of enabling the person to provide
goods or services to members of the
| 17
Club and their guests and to other
members of the public and the
granting of the lease or licence for
that purpose has been approved at a
general meeting of the ordinary
members of the Club.
relation to the disposal of any core
property of a registered Club to a
government department, statutory body
representing the Crown, State owned
corporation or local council.
Reporting to members
Section 41J(2) provides that “the annual
report” of each Club must specify the land
of the Club which is core property and the
land which is non-core property as at the
end of the financial year to which the
annual report applies.”
“Annual report” is not defined in the
Registered Clubs Act or the Corporations
Act but it has traditionally been held to
refer to the financial statements and
accounts, directors’ report and auditor’s
report which are sent to members each
year.
The members do not approve or determine
the classification between the Club’s land
as core property and non-core property.
This is the task of the Board. Once
allocated, the classification must be
included in the annual report.
A simple statement which sets out which
land is core property and which land is
non-core property is sufficient to meet the
obligation under section 41J(2). However,
this does not inform members of the effect
of the allocation between core and noncore property. It is preferable that the
consequences of the allocation be included
in the annual report so that members are
made aware.
If a Club disposes of core property other
than in accordance with the Registered
Clubs Act, the OLGR can make application
to the Supreme Court for an order:
 declaring a contract for the disposal of
land void;

that the land be transferred back to
the Club;

directing the payment of an amount
or further amount in relation to the
disposal of the land by the person to
whom the Club has disposed of the
land; and

such other
necessary.
orders
as
may
be
The Director General could also take
disciplinary action against the Club under
the Registered Clubs Act which could lead
to removal of office of directors and/or the
secretary, substantial monetary penalties
and possibly cancellation of the Club’s
licence.
6.
PRELIMINARY APPRAISAL
All major capital works projects should be
properly defined. This is a step-by-step
process commencing with an initial brief,
conceptual options with approximate cost
estimates and early feasibility analysis. The
systematic appraisal of all major capital
works projects helps ensure the best
choices are made and the best value for
money is obtained.
Before embarking on major capital works
projects, Club Directors and management
need to carefully consider and document
their justification for planned expenditure.
However, it is not enough to be satisfied
the investment is justified in terms of need;
it is also necessary to ensure that it
produces its planned benefits to Club
members and the wider community.
| 18
MAJOR CAPITAL WORKS
The preliminary appraisal should include a
clear statement of the need which the
project is designed to meet and how this
will be achieved. It should identify all
realistic options, including the option of
doing nothing and, where possible,
quantify the key elements of all options.
It should assess the costs and benefits of all
options, identify the preferred one, and
recommend whether its benefits are
sufficient to warrant incurring the costs.
Costs include the initial capital cost and the
ongoing costs generated by the use of the
capital asset.
Avoiding Premature Commitments
All involved in the appraisal and
management of projects should guard
against the danger that when a project is
mooted, it is given a degree of premature
commitment. This should be avoided. A
sequence of considered decisions generally
will lead to progressively greater
commitment of resources, but an
irrevocable commitment to proceed should
only be made after all appraisal stages
have been satisfactorily completed and
final approval obtained. These decision
points should be clearly noted in the
minutes of Board and/or relevant
Committee meetings.
Ability to Pay
Before moving on to a detailed appraisal of
the project, the Club needs to consider its
capacity to pay for the project. It should be
recognised at the outset that major capital
works projects involve the Club investing in
additional operating assets. If the Club
intends to rely on a financial institution for
funding, an initial approach should be
made at this stage to assess likely
repayment terms.
planned major capital works project. This
assessment should include:

profit and loss projections showing the
impact of the project on the main
revenues and costs of the Club;

balance sheet projections showing the
impact of the project on the finances
of the Club; and

cash flow analysis - showing the
impact of the project on cash flow.
While the assessment does not have to be
extremely detailed at this stage, it should
be recognised a more accurate analysis will
improve the confidence of members in the
viability of the project and the Board’s
ability to deliver it.
7.
DETAILED APPRAISAL
If the preliminary appraisal is favourable,
the proposal is further developed and
defined, usually by a third party entity.
Clubs should be aware of the different
approaches for major capital works and
carefully consider which is the most
appropriate approach for their specific
needs, remembering that the choice lays
with the Club, not the third party entity.
The way in which the Club allocates
responsibilities to third parties throughout
a project should be determined only once
the Club has established its key needs and
criteria for the project. Some common
methods include:

Design and Construction – where the
responsibility
for
the
design,
documentation and construction is
contracted to a single entity;

Design and Tender – where the design
is documented and then tenders
At this stage, Clubs should conduct an
assessment of the financial impact of the
| 19
sought from a single contractor for
construction19; and

Construction Management – where a
professional agent undertakes the
management of the individual trade
tendering for a management fee. The
Club enters contracts directly with
each trade rather than a single
building contractor.
At this stage, the Club should answer the
following questions:
Q1: Building upon the analysis done during
the preliminary appraisal, what is the
justification for the project?
documentation is appropriate to the Club’s
contractual needs.
Q3: Does the Club have the resources to
manage, supervise and accept construction
risk?
It often requires a high level of expertise to
properly design, document and construct.
Managing capital works projects is not part
of Clubs’ core activities, so outside
expertise may be required. In determining
the Club’s role, the Board should be aware
that:

a project manager who is an employee
will need to be qualified 20 and be
allocated sufficient resources and
time;

the Club will be deemed as being the
Principal Contractor under the Work
Health and Safety Act 2011 and will
require a safety system and
management practices which comply
with Work Health and Safety Act 2011,
and NSW Government Work Health
and Safety Management System
Guidelines21;

special insurances will be required;

the Club will require expertise to
properly manage the human resources
needed on a construction project such
as checking trade contractors’
credentials (work cover authority,
insurances, workers compensation
declaration forms, etc); and

the Club will require qualified
resources to establish formal contacts
with trade contractors and purchase
agreements with suppliers which
establish scope, risk allocation, price,
Clubs need to consider in detail:

affordability;

benefits to members;

increase to patronage/revenue;

benefits to community;

special features being considered;

necessity such as market demands,
compliance upgrade, wear and tear,
diversification of income, operational
efficiencies, maintenance problems,
etc; and

conformity with the Club’s medium to
long term business plans and goals.
Q2: Is there any design component?
Clubs need to consider the design in the
form of drawings and/or specifications that
are needed to obtain approvals from
authorities (if required) and to describe
quality, extent, visual and other
requirements of the Club. Consultants
should be briefed on the Club’s chosen
procurement methodology to ensure
19
Note: such tenders can be sought in a number of
formats. For example, lump sum, negotiated or
novated (where the remainder of the
design/documentation responsibility is ‘novated’
or transferred to the contractor).
20
21
E.g. hold a builders licence issued by the NSW
Department of Fair Trading and be properly
trained in the management of Workplace Health
and Safety in a major capital works environment
The majority of capital works projects
undertaken by Clubs involve at least some
refurbishment of their current premises. This
carries with it a high occupational health and
safety risk and the need for complex staging to
minimise the disruption to normal trading.
| 20
MAJOR CAPITAL WORKS
terms of payment, quality, time,
warranties,
maintenance
requirements and other obligations.
Q4: Has the Club addressed the key
financial issues?
A thorough financial analysis needs to be
prepared at this stage quantifying financial
costs (both current and ongoing capital)
and specifying sources of funding. Key
factors to consider in determining whether
the Club should undertake the project are:

Interest Coverage Ratio on Loans –
this is a calculation of the number of
times interest owed is covered by
EBITDA;

Maximum Debt Level – this is usually
determined by a multiple of EBITDA.
Financial institutions usually have a
minimum benchmark. Note: It is
important that the institution’s
lending
criteria
be
properly
understood;

Cash flow – this needs to be
monitored closely so that the
repayment can be met;

Return on investment – the Club
should determine in advance how it
intends to measure the results
projected to flow from the
expenditure. Not all major capital
works will be measurable in strict
dollar terms. For example, the return
on a Club’s investment in a sports field
will be difficult to quantify in financial
terms. However, major capital works
that are planned to deliver
commercial returns should be readily
quantifiable; and

Impact on current operations –
quantify potential disruption to
business (e.g. gaming floor, car park
etc).
Information to Members
Once the detailed appraisal has been
completed and a decision made to
proceed, members should be presented
with information that addresses at a
minimum, the “4w’s” (what, when, where,
and why). Sufficient information should be
provided to give members a clear
understanding of the scope and nature of
the project.
8.
PROJECT IMPLEMENTATION
Once the major capital works project is
fully defined, documented and approved,
further implementation can commence.
For larger projects, Clubs should select an
independent expert22 to act on their behalf
to manage the delivery of major capital
works projects. The independent expert
should, on behalf of the Club, arrange the
employment of necessary consultants to
define, design, document and gain
approvals for the project. They should
obtain at least three independent
quotations for all sub/trade contractor and
supplier works.
In some circumstances the Club and
independent expert may form the opinion
that the lowest tendered price does not
conform to the needs of the Club. An
example may be the capacity of the service
provider to perform the necessary works
within time, cost and ability, including
Work Health and Safety. In that
circumstance, the next lowest price should
be used, providing it conforms to the needs
of the Club.
22
An independent expert could for example be an
experienced quantity surveyor. It is suggested
that clubs use the Business Register on the
Australian Institute of Quantity Surveyors (AIQS)
website www.aiqs.com.au to locate an AIQS
member who is subject to the AIQS Code of
Conduct, professional indemnity insurance
requirements and professional standards of
practice
| 21
When making a decision it is important
that Clubs document the reasons why, and
why not, a particular action was taken. For
example, Clubs should document why an
organisation was suitable and why another
was not suitable.
Clubs may make a selection by comparing
capable organisations using non price
criteria, provided that fees and charges are
reviewed by a qualified independent
quantity surveyor 24 (with relevant
experience) engaged by the Club. Non
price selection criteria typically include:
Selection of Third Parties

Intellectual property from past work;
In most cases Clubs will need the expertise
of a number of outside specialist
organisations to enable major capital
works projects to be defined, documented,
cost-planned and approved. Third parties
include consultants, architects, engineers,
suppliers, builders, managing contractors,
project
managers
and
sub/trade
23
contractors, among others.

Industry knowledge and specialty
expertise25;

Adequacy of insurances;

References/reputation;

Financial viability;

Resources
perform;

Work Health and Safety compliance;
A combination of price criteria and non
price criteria may be used to select these
third parties. The selection criteria should
be documented then conscientiously
applied. For example, selection criteria for
a construction project should establish
whether the company is a qualified
construction company that can act as the
Principal Contractor. Club Directors need to
ensure the company:

Unique product or services;

Industrial and workplace relations;

Qualifications (e.g. builder’s licence);

Contractual adequacy;

Guarantees/risk taking offered;

No conflicts of interest with Board and
management;

Transparency of costs; and

Weighing against other alternatives.

has necessary insurances (professional
indemnity, contract works, public
liability and workers compensation);

holds a builder’s licence;

has an occupational health and safety
system in place which complies with
Work Health and Safety Act 2011, and
NSW Government Work Health and
Safety
Management
System
Guidelines edition 4 (or the most
recent);

has a track record,
experience, etc; and

is to be formally evaluated against the
non price criteria listed below.
23
to
Subject to the above points, Clubs can
negotiate with one company to achieve a
desired outcome, provided that fees and
charges by the company are reviewed by a
qualified independent quantity surveyor
(with relevant experience) engaged by the
Club.
Clubs may also employ an
independent specialist at key milestones
throughout the project to undertake an
audit role by checking progress is as
expected.
references,
ClubsNSW can provide a list of suppliers with
extensive expertise and knowledge of the club
industry.
available/capacity
24
25
A quantity surveyor is usually required by banks
if debt funding is involved.
Due to the unique nature of the Club industry,
industry knowledge and experience should be
highly valued
| 22
MAJOR CAPITAL WORKS
Where a Club settles on a bid that was not
the lowest price, reasons for the decision
should be documented. Clubs should refer
to the Guideline for Procurement of Goods
and Services for detailed guidance in this
area.
| 23
1.
PURPOSE
The purpose of this Guideline is to
encourage the highest standard of practice
by Clubs in regard to the procurement of
goods and services.
2. DEFINITIONS
‘Contract’ means a legally binding
agreement involving mutual obligations.
4. GUIDING PRINCIPLES
Boards of Directors and management have
a responsibility to ensure that purchases of
goods and services are undertaken in an
ethical manner and should be guided by
the following principles.
Clubs should always seek to obtain value
for money when making procurement
decisions and balance both price and nonprice (e.g. quality, member demand)
considerations:
‘Fairness’ means being just, equitable,
reasonable and even-handed.

‘Tender’ means a written price, bid,
quotations and consultant proposals for
the supply of goods or services.
all aspects of the procurement process
should be conducted with honesty and
fairness at all levels of the industry;

Clubs and suppliers should conform to
all legal obligations;

material personal interests and
conflicts of interest should be avoided,
and any person (such as a Director or
Secretary of a Club) with such an
interest should declare that interest as
soon as the conflict is known to that
person; and

inducements offered by suppliers
relating to the purchase of goods or
services should not be allowed to
influence purchasing decisions.
‘Tenderer’ means any party submitting
tenders.
‘Value for money’ means the balance
between the price of goods or services and
other factors relevant to quality and
meeting specific needs of Clubs, for
example: experience, reliability, timeliness
and service.
3. BACKGROUND
Among the most important decisions Clubs
make are those relating to the provision of
goods and services. Clubs purchase a wide
array of goods ranging from food and
beverage to gaming and office equipment.
Outsourced services vary from professional
(accounting, legal, etc) to cleaning, catering
and maintenance. For major procurements
such as building projects Clubs can select a
supplier by way of tender.
5. DISCLOSURE
Consistent with the requirements of the
Registered Clubs Act 1976, a Director of a
Club who has a material personal interest26
26
For the purposes of Section 41K of the Act, a
Club Director or top executive is considered to
hold a pecuniary interest in a company if they
have a shareholding of more than 5 per cent, if
the company is involved in selling gaming
machines or liquor to the Club, any shareholding
gives rise to a pecuniary interest.
| 24
including a pecuniary interest or a conflict
of interest in a Club procurement should as
soon as practicable declare the nature of
the interest at a meeting of the Board of
Directors.
Invited Tenders
There are four types of invited tender:

Open - Clubs invite tenders by public
advertisement without restriction on
the number of tenders received.
Tenderers
are
required
to
demonstrate they have the right
product and the necessary skills,
resources, management practices and
financial capacity to meet Club
requirements;

Selective - Clubs with a continuous
program of works, select a limited
number of tenderers, from a register
of approved tenderers;

Expressions of interest - Clubs invite
expressions of interest for specific
projects or specific types of projects.
Applicants are evaluated against
published selection criteria and a
number of those who best meet the
required criteria are invited to tender;
and

Pre-qualified - Tenders are invited
from a register of approved tenderers
who are known to have the ability to
undertake a specialist project of the
type proposed.
Once a declaration has been made, notice
of that declaration should be:

recorded in a register in accordance
with Section 16 of the Registered
Clubs Regulation; and

made available to members pursuant
to Section 18 of the Regulation; and

noted in the minutes of the Board
Meeting that the conflict is declared.
6. TENDERING METHODS
Clubs should use the following processes
when selecting a supplier of goods or
services by means of a tender:

parties should not seek or submit
tenders without a firm intention to
proceed;

parties should not engage in any
practice that gives one party an
improper advantage over another;

conditions of procurement should be
the same for each tenderer on any
particular project;

Clubs should clearly specify their
requirements
in
the
tender
documents and indicate criteria for
evaluation;


evaluation of tenders should be based
on the conditions of procurement and
selection criteria defined in the tender
documents; and
non-price selection criteria and
evaluation are formally documented
and accepted by the Club’s Board of
Directors; and


the confidentiality of all information
provided in the course of procurement
should be preserved.
for capital works projects, an
independent qualified expert on costs
such as a quantity surveyor reviews
the fees, charges and costs quoted to
be reasonable for the goods, services
or works offered.
Negotiated Tenders
Clubs may negotiate with a single
supplier to achieve a desired outcome
provided that:
| 25
Negotiations should deal fairly with all
tenderers in a manner which reflects the
core principles of this Guideline. In some
circumstances the Club may form the
opinion that the lowest tendered price
does not conform to the needs of the Club.
An example may be the capacity of the
tenderer to provide the necessary services
within time, cost and ability. In that
circumstance, the next lowest price may be
used, providing it conforms to the needs of
the Club and the reasons for choosing it
are documented.
7. PREPARATION OF TENDERS

conformity of goods or services to
Club requirements;

value for money;

quality assurance;

price compared with estimated cost;

technical, management, physical,
environmental management and
financial resources;

current commitments;

innovation;

contractor’s previous performance;
and

industrial relations and work health
and safety record.
Tender Documents
The tender documents should:

clearly
define
the
contractual
obligations of the parties;

provide full details of all work covered
by the tender;

draw attention to any special
conditions or obligations under the
contract which depart from the Club’s
normal practice;

designate any supporting information
required from tenderers;

nominate a person for the provision of
additional information;

provide positive encouragement to
tenderers, allowing them the option,
in addition to submitting a conforming
tender, to show how an alternative
might offer better value for money;
and

identify the selection criteria on which
the assessment of tenders will be
based.
Selection Criteria
Selection criteria should include but may
not be limited to:
Selection criteria should be clearly
advertised in the tender documents. If
criteria have not been included in the
tender documents, the criteria should be
determined prior to evaluation of tenders
to ensure an objective and rational basis
for the assessment. Weighting of selection
criteria should be decided prior to the
closing of tenders but should not be
disclosed to tenderers.
8.
PROCEDURES FOR INVITED
TENDERS
Advertisement of Tenders
Where tenders are called by public
advertisement, Clubs should provide equal
opportunity to all qualified tenderers.
Tenders should be advertised so as to
attract suitable and competitive bidding
and the advertisements should include as a
minimum:

adequate description of the goods or
services required;

advice from where tender documents
may be obtained and particulars of
the contact officer;
| 26

precise details of where and when
tenders will close;

price of purchasing the
documents, if applicable; and

prominent notification of the need for
awareness of the Club Code of Practice
and Best Practice Guidelines.
tender
In framing the advertisement, Clubs should
allow a reasonable time for tenderers to
make site visits and undertake any other
work necessary to allow them to respond
fully. Clubs should make the site
reasonably available for inspection by
tenderers.
Communication with Tenderers
Any information given to a particular
tenderer should also be given promptly to
all other tenderers.
Clubs should nominate a person with
knowledge of the work to respond to all
enquiries from tenderers. All such
enquiries should be recorded, noting time
and date of receipt and the issue discussed.
Where an enquiry reveals a significant
error,
including
ambiguities
or
discrepancies, information provided should
be promptly conveyed in writing to all
tenderers. Where the tender documents
require a pre-tender conference, such
conference should be minuted and the
minutes should be forwarded to all
tenderers, and become a part of the tender
documents.
Amendments to Tender Documents
Where it becomes necessary to amend
tender documents, the amendments
should be advised as an addendum to all
tenderers in sufficient time for all
tenderers to properly and fully consider
the addendum before tenders close.
Each addendum should clearly state that it
is meant to be incorporated in the tender
documents. Tenderers should confirm in
their tenders that allowance has been
made for each addendum.
Receipt of Tenders
All necessary arrangements should be
made to safeguard the security and
confidentiality of all tenders. Tender
documents should specify the method and
time for lodgement of tenders. Public
acknowledgment of those tenderers
submitting a tender should be made.
Late tenders should not be accepted,
except:

when it is clear that the cause of the
lateness was beyond the tenderers’
control; and

when there is no possibility the
integrity of the procurement process
has been compromised.
Where a late tender is received, the time
and date of receipt shall be noted on the
document and endorsed by the recipient.
9. EVALUATION OF TENDERS
Tenders should be assessed by people who
are free of any conflict of interest that
might undermine the objectivity of the
assessment. Tenders should be assessed in
a consistent fashion against the selection
criteria contained in the tender
documents. If necessary, outside expertise
should be called upon to help with
assessment.
Any tender which does not comply with
the tender documents should be rejected.
Where a Club rejects a tender, the reasons
for such action should be clearly
documented by the Club.
| 27
Should Clubs seek a revised tender, they
should specify the conditions under which
revised proposals are to be submitted.
Where a tenderer offers an alternative, a
comparable price for the alternative should
not be obtained from other tenderers nor
should the detailed alternative be used as
the basis for the recall of tenders.
tenderers, as to how their tender
performed against the selection criteria,
may be pursued with the objective of
enhancing future performance.
12. FAIR DEALING
Negotiations
10. NEGOTIATIONS
Should none of the tenders be acceptable,
negotiations may be conducted, preferably
in the first instance with the least
unacceptable with the aim of achieving a
conforming tender. Unless time constraints
prevent it, Clubs should first exhaust
negotiations
with
the
preferred
tenderer(s), before negotiating with
subsequent tenderers.
Clubs should not in post tender negotiation
unfairly seek to trade off different
tenderers’ prices against others in an
attempt to seek lower prices. This practice
is sometimes known as ‘bid shopping’ and
is unacceptable.
In any tender related negotiations or
evaluation, the Club should deal fairly with
all tenderers in a manner that reflects the
core principles of this Guideline. Clubs
should not in any way seek to trade off
different tenderers’ prices against others in
an attempt to seek lower prices.
Confidentiality
Confidentiality of information, particularly
intellectual property, should be preserved
throughout the tender process. This means
that information provided by a tenderer
relating to a tender should not be divulged
to another tenderer, at any stage during
the process, or after it has been concluded.
Written records of all negotiations should
be maintained by the Club.
11. OUTCOMES OF TENDERS
Clubs may advise the name of the
successful tenderer and the awarded
contract sum. No information should be
released in relation to unsuccessful
tenders. Unsuccessful tenderers for major
procurements should be advised (in
writing) that their tenders have been
unsuccessful.
For major procurements, the option of
providing a debriefing for unsuccessful
| 28
to satisfy the needs of members and to
cater for changes in consumer demand.
1. PURPOSE
This Guideline establishes a framework for
benchmarking the financial performance of
Clubs.
2. DEFINITIONS
‘Benchmarking’ is the process whereby
Clubs measure their performance and
compare it with others (inside and outside
the industry) for the purpose of improving
performance in key areas of operation. This
process helps Clubs, among other things:

improve overall
efficiency;

improve productivity of staff;

control costs;

utilise equipment and other assets
more effectively; and

meet their
obligations.
profitability
community
and
support
‘Capital expenditure’ is expenditure
relating to extending, renovating or
maintaining Club facilities or the purchase
of capital items such as gaming machines.
‘EBITDA’ means earnings before interest,
tax, depreciation and amortisation.
‘EBITDARD’ is a variation of EBITDA and
means earnings before interest, tax,
depreciation, amortisation, rent and
donations.
‘Gross profit’ means sales revenue minus
sales costs. It is also sometimes called
“sales profit”.
‘Reinvestment’ is capital expenditure
necessary to upgrade or renovate facilities
3. BACKGROUND
By definition, Clubs are not-for-profit
organisations. They are established by
groups of people sharing a common
interest who come together to provide
facilities and benefits that promote the
common interest. They exist to provide
these benefits to members and the
surrounding community. Profits cannot be
distributed to individuals and Clubs cannot
be sold.
The unique nature of Clubs is reflected in
the way they operate and perform
financially. They are fundamentally
different from commercial enterprises such
as hotels or casinos whose primary goal is
the generation of profit for their owners or
shareholders.
In
this
increasingly
competitive
environment, the future viability of Clubs
relies upon their ability to operate
efficiently and in a manner consistent with
accepted
business
practice.
Club
operations need to be professionally
managed and financial performance
maximised so that Club facilities are
preserved and member benefits and
community support sustained over time.
Benchmarking plays a vital role in
promoting efficiency by ensuring that Clubs
have access to data that:

identifies performance gaps within
Club operations;

highlights strengths and weaknesses
within Club operations;
| 29

assists in developing
improvement strategies;

provides a platform for decisionmaking
and
performance
improvement; and

business
encourages best practice.
4. MEASURING PROFITABILITY AND
OVERALL EFFICIENCY
The key indicator in assessing the financial
position of a Club is profitability. The
profitability of Clubs relates to their ability
to cover their expenses and surpluses to
further invest in facilities and services for
the benefit of their members.
The primary indicator of a Club’s
profitability (and operating efficiency) is
EBITDARD – earnings before interest, tax,
depreciation, amortisation, rent and
donations.
From a benchmarking point of view, the
only appropriate measure of profitability is
a comparison of “bottom line” trading
performance of each Club before
expenditure on community support.
EBITDARD is a valid indicator of profitability
and efficiency for Clubs, irrespective of
size, purpose or location. The retention
and efficient use of revenues is one of the
keys to a successful operation.
5. CORE TRADING ACTIVITIES
Clubs should benchmark as a minimum the
following core trading activities:

bar;

food; and

gaming.
Minimum baseline benchmark key
performance indicators for bar, food and
gaming - KPIs:
Bar:
KPI
Explanation
Revenue
Total bar revenue as a % of
total Club revenue
COGS
Cost of goods sold as a % of
total bar revenue
GP
Gross profit as a % of total
bar revenue
Wages
Bar wages as a % of total
bar revenue
Other Costs
Other bar direct costs as a
% of total bar revenue
Net
Net contribution as a % of
Contribution total bar revenue
Food:
KPI
Explanation
Revenue
Total food revenue as a % of
total Club revenue
COGS
Cost of goods sold as a % of
total food revenue
GP
Gross profit as a % of total
food revenue
Wages
Food wages as a % of total
food revenue
Other Costs
Other food direct costs as a
% of total food revenue
Net
Contribution total food revenue
| 30
Gaming (Departmental):
industry benchmarking tools 27 or those
published from time to time by ClubsNSW.
KPI
Explanation
Revenue
Total gaming revenue as a
% of total Club revenue
6. EXPENSES
Tax
Gaming tax as a % of total
gaming revenue
Clubs should benchmark the following
major overhead running cost items:
Wages
Gaming wages as a % of
total gaming revenue

salaries and wages including on-costs
(as a percentage of revenue);
Promotions
Promotions as a % of total
gaming revenue

advertising, entertainment, marketing
and promotions;
Other Costs
Other gaming direct costs as
a % of total gaming revenue

repairs and maintenance;

printing, postage and stationary; and
Net
Contribution total food revenue

energy costs.
Gaming (Product):
KPI
Explanation
Average Turnover
per Machine per Day
– by Manufacturer
Self-explanatory
Average Turnover
per Machine per Day
– by Denomination
Self-explanatory
Average Profit per
Machine per Day –
by Manufacturer
Self-explanatory
Average Profit per
Machine per Day –
by Denomination
Self-explanatory
Machine
Distribution – by
Manufacturer
Reflects market
share
Machine
Distribution – by
Denomination
Reflects market
share
KPI
Explanation
Wages
Non-departmental wages
as a % of total Club
revenue
On-costs
On-costs as a % of total
Club revenue
R&M
Repairs and maintenance
costs as a % of total Club
revenue
Promotions
Promotion costs as a % of
total Club revenue
Advertising
Advertising costs as a % of
total Club revenue
Entertainment Entertainment costs as a
% of total Club revenue
Energy
Energy costs as a % of
total Club revenue
PPS
Postage, printing and
stationary costs as a % of
total Club revenue
Other costs
Miscellaneous overhead
costs as a % of total Club
revenue
The KPI performance levels of each of
these core activities should be measured
and compared against benchmarks set by
27
Club Data Online (CDOL).
| 31
7. CAPITAL EXPENDITURE
Capital
expenditure,
including
reinvestment, is essential to both maintain
the existing level of trade but also to, if
appropriate, grow the business in the
future.
KPI / Ratios
Operating
Margin
Explanation
Cash Solvency Ratio
Cash Payments to
Cash Receipts
Solvency Ratio
Current – Working
Capital Ratio
Liquidity Ratio
Quick Ratio
Liquidity Ratio
Debt Ratio
Debt Performance
Ratio
Interest Cover
Ratio
Debt Performance
Ratio
Gross Profit
Margin
Profitability Ratio
As for all major expenditures, it is essential
the investment in Club facilities be
supported by appropriate research and
analysis (including consultation with
members). A comprehensive business case
should be prepared and considered by the
Club board and management.
Net Profit Margin
Profitability Ratio
Stock Turnover
Ratio
General Ratio
Debtors Turnover
ratio
General Ratio
The business case analysis should include:
8. PRICES

the financial implications of the
investment, its costs and the capacity
of the Club to pay the sum concerned
from cash reserves or borrowings;
Clubs should benchmark pricing levels for:

the likely impact on the business of
the Club as a result of that
expenditure; and

the return on investment from that
expenditure through an analysis of
incremental cash flows.
The hospitality industry constantly changes
to meet consumer tastes and preferences.
In the face of significant competitive
pressure, Clubs that fail to reinvest in
income-producing assets such as gaming
machines or to adequately maintain or
renovate bars, lounges and food service
facilities, jeopardise their future financial
well-being.
The following financial and balance sheet
ratios should also be considered as part of
the benchmarking process:

beverages;

food; and

membership.
9. COMMUNITY SUPPORT (GRANTS
AND DONATIONS)
Clubs should benchmark both monetary
and in-kind support they provide to the
community.
Categories of
support
include28:
a)
b)
28
Community Welfare and
Services;
Community Development;
Social
This is not an exhaustive list.
| 32
c)
d)
Community Health Services; and
Employment Assistance Activities.
The relevant benchmark of Club
community support is the total value of
cash and in-kind support as a proportion of
operating surpluses/profit.
For details on the types of community
support provided by Clubs, please refer to
the Guideline for Community Support.
10. COMMUNITY CONTRIBUTION
(EMPLOYMENT, SOCIAL AND
LOCAL ECONOMY)
Clubs should benchmark the contribution
they provide to the community from an
employment, social & local economy
perspective, including, but not limited to:

Number of people employed by the
Club and associated wages and oncosts (i.e. superannuation);

Training costs for Club employees and
community based training programs;

Number of local suppliers and service
providers engaged and the Clubs
financial contribution to the local
economy;

Capital investment in community
assets – parks, sporting grounds,
recreational centres etc; and

Support of the performing arts in the
local
community
(i.e.
bands,
musicians, singers) and the fees
incurred by the Club to engage and
support their services.
| 33
1. PURPOSE
The purpose of this Guideline is to provide
Clubs with information regarding the key
principles and processes that should be
followed when remunerating
Club
executives, including top executives. This
includes CEOs/Secretary Managers and
may also include senior and department
managers.
2. DEFINITIONS
‘Remuneration’ means payment, reward or
recompense for services rendered. This
includes all monetary benefits such as
salary, wages, leave entitlements, salary
sacrifice
arrangements,
performance
bonuses and/or incentives and other
allowances and/or concessions, any Fringe
Benefit Tax (FBT) paid on any part of the
remuneration
package,
and
any
termination, severance or end of
employment contract payments.
‘EBITDARD’ means earnings before
interest, taxes, depreciation, amortisation,
rent and donations.
3. EMPLOYMENT RELATED
DISCLOSURES
The Registered Clubs Act 1976 requires
that Clubs record and make available to
members:

the number of top executives of the
Club (if any) whose total remuneration
for the reporting period (comprising
salary, allowances and other benefits)
falls within each successive $10,000
band commencing at $100,000;

details of any loan made during the
reporting period to an employee of
the Club if the amount of the loan
(together with amount of any loan to
the employee of the Club that has not
been repaid) is more than $1,000
including the amount of the loan and
interest, if any;

details of any contract approved
during the reporting period under
Section 41M of the Act; and

the name of any employee of the Club
who the Club is aware is a close
relative of a member of the governing
body of the Club or of a top executive
of the Club and the amount of the
remuneration package paid to the
employee.
4. DEFINING A TOP EXECUTIVE
The definition of top executive has been
clarified so that it applies only to those
Club employees with clear managerial
responsibilities. The definition captures the
secretary of the Club, a person appointed
under Section 14 of the Regulation as the
manager of any premises of the Club, any
person paid more than $100,000 involved
in the general administration, liquor or
gaming operations of a Club who is one of
the five (5) highest paid employees.
Top executives have additional disclosure
under Part 4A of the Act.
5. CLUB AWARDS
Most Club executives have their terms and
conditions of employment determined and
regulated by the Registered and Licensed
| 34
Clubs Award 2010. Generally, the award
serves the Club industry well because it
provides clear information and reference
about work value, work standards, pay
rates and terms and conditions of
employment for Club managers in New
South Wales.
6. THE ROLE OF THE BOARD OF
DIRECTORS
Boards of Directors are ultimately
responsible
for
determining
the
remuneration for Club executives and
monitoring and reviewing performance.
Boards of Directors must:

establish and consistently enforce,
and update where necessary, an
executive remuneration policy for
their Clubs;

determine, agree and
remuneration
package
CEO/Secretary Manager;

consider the CEO/Secretary Manager’s
recommendation(s)
for
the
remuneration
of
other
Club
executives;

develop measurable key performance
indicators (KPIs) and periodically
review and assess (at least annually)
the performance of the CEO/Secretary
Manager against those KPIs to
determine whether they are being
met;


offer a
to
the
be aware and comply with any
legislative requirements that pertain
to executive remuneration; and
7. CONTRACT OF EMPLOYMENT29
Club CEOs/Secretary Managers must have
an employment contract approved by the
Board of Directors that expressly states
their terms and conditions of employment,
their roles and responsibilities, and the
classification level (and structure) of
remuneration they will receive.
A Club must not enter into an employment
contract for the remuneration of a top
executive unless the proposed contract has
first been approved by the Board of
Directors30.
8. EXECUTIVE REMUNERATION
COMMITTEE
Clubs should establish an Executive
Remuneration Committee (ERC). The ERC
can oversee remuneration of Club
executives and other key personnel such as
senior and department managers. The ERC
can only make recommendations to the
Board of Directors on the Club’s
remuneration policy and packages for the
CEO/Secretary Manager and other Club
executives.
The ERC should:

develop, review and update (the latter
only when necessary) the Club’s
remuneration policy to ensure its
contemporary relevance and that it
adequately and satisfactorily rewards
performance;

establish the remuneration packages
for the CEO/Secretary Manager and
other Club executives. An ERC can
then make recommendations to the
ensure that “value for money” is
achieved.
29
30
The Club Managers (State) Award 2006 (NSW)
NAPSA sets out the minimum terms and
conditions of employment for club managers
which includes remuneration.
See Section 41M of the Registered Clubs Act
1976 (NSW).
| 35
Board of Directors and seek their
approval;

establish KPIs for the CEO/Secretary
Manager. An ERC can then make
recommendations to the Board of
Directors and seek their approval;
Club executives. This may involve
consulting the Club Managers (State)
Award 2006 (NSW) NAPSA, and may also
necessitate seeking advice from ClubsNSW.
Work Value

consider the CEO/Secretary Manager’s
recommendation(s)
for
the
establishment of KPIs for other Club
executives;
To accurately identify the true work value
of any Club executive position, the
following steps need to be undertaken:

research and be informed about
market rates of pay for executive
remuneration; and
Step 1:

be aware and comply with any
legislative requirements that pertain
to executive remuneration.
Note: A majority of the Board of Directors
must approve the remuneration of a
CEO/Secretary Manager and other Club
executives, not an ERC.
9. DETERMINING THE LEVEL OF
REMUNERATION
Step 3:
Step 4:
Market Rate of Pay
Generally, there are five key factors in
determining remuneration:

A consideration of the form of
employment regulation;

The work value of the position;

The market rate of pay for a position
of similar work value;

The performance of the
occupying the position; and

The capacity of the Club to pay, its
business circumstances, and its
dependence upon the person being
employed.
person
Employment Regulation
Considering the form of employment
regulation is the starting point when
determining the remuneration for a
CEO/Secretary Manager and any other
Step 2:
Identify all the duties, tasks and
responsibilities required of the
position.
Identify the level of complexity
and difficulty associated with
each duty, task and responsibility.
Identify the essential and
desirable skills, knowledge and
expertise required of the
position.
Prepare a job or position
description that incorporates the
information gathered from Steps
1, 2 and 3.
A common way to determine the market
rate of pay for a Club executive position is
to compare the skills, knowledge and
expertise required of the position with
identical or similar positions in the Club
industry and/or the broader labour market.
This may be a difficult exercise, but is also a
necessary one.
Performance
An important aspect of any remuneration
package is to account for performance.
Strong performance from a Club executive
should be rewarded. The role of an ERC in
this process is important and is outlined
above.
Capacity to Pay
The business and financial circumstances of
the Club are a critical consideration when
determining remuneration. Boards of
| 36
Directors should have a clear and current
awareness and understanding of the Club’s
business and financial position before
determining the remuneration of a
CEO/Secretary Manager, or considering the
CEO/Secretary
Manager’s
recommendation(s) for the remuneration
of other Club executives.
10. REVIEW OF CLUB EXECUTIVE
PERFORMANCE
The Board of Directors or an ERC should
periodically (at least annually) review the
performance of the CEO/Secretary
Manager for remuneration purposes. The
Board of Directors or an ERC can also, in
conjunction with and on advice from the
CEO/Secretary Manager, periodically (at
least annually) review the performance of
other Club executives.
The performance of Club executives should
be measured against quantitative financial
benchmarks such as, but not limited to,
Club profitability (measured by EBITDA or
EBITDARD 31 and the levels of working
capital. Performance should also be
measured against qualitative benchmarks
such as, but not limited to, vision and
leadership, accomplishment of long-term
strategic objectives, and development of
staff and management.
The criteria and KPIs against which a Club
executive’s performance is measured
should be clearly expressed in the contract
of employment.
31
Earnings before interest, tax, depreciation,
amortisation, rent and donations.
| 37
OVERSEAS TRAVEL
1. PURPOSE
This Guideline provides Clubs with
information that will assist them in
planning and justifying overseas travel by
Directors, management or staff. It will also
help to maximise the benefits of overseas
travel to the Club.
should exercise financial prudence,
accountability
and
transparency
particularly in relation to overseas travel,
and at all times seek tangible benefits from
it for the Club that are commensurate to
the expense involved.
4. APPROVAL OF OVERSEAS TRAVEL
2. DEFINITIONS
“Overseas travel” means travel for Clubrelated purposes from Australia to an
overseas country where travel and related
costs (including expenses and allowances)
are either fully or partially met by the Club,
or where the costs of overseas travel for
official duties are funded from other
sources including suppliers (e.g. fee for
service activities, full costs covered by a
conference organiser, grants and other
funds).
“Inducement” means an offer of overseas
travel or another offer of material value
which is made to a Club employee or
director by a supplier of product, whether
that product is purchased by the Club or
not and whether the supplier’s offer is
accepted by the individual or not. It may
be an inducement if the supplier offers
‘free’ or sponsored travel, but it will not be
an inducement if the travel is in connection
with or coordinated by a supplier and is
paid for wholly by the Club.
Directors and managers should provide a
written justification for any planned
overseas travel that clearly sets out:
a)
b)
c)
d)
Overseas travel should only be approved if
it is considered necessary in the pursuit of
the Club’s objectives.
In considering
applications for overseas travel Boards
should be satisfied that:
a)
3. GUIDING PRINCIPLE
Club representatives sometimes travel in
order to better understand and evaluate
opportunities that may exist for the Club or
to further their education. However Clubs
the proposed travel itinerary;
the purpose and objectives of the
travel;
expected benefits from the travel; and
the estimated cost including airfares
and
other
travel
costs,
accommodation and living expenses,
meal and other allowances and
incidentals.
b)
the sites to be visited/investigated on
the trip are closely related to the
individual’s area of responsibility. For
example, travel associated with
attending gambling sites could be
undertaken by those Directors or
managers with responsibility or
oversight of that area of Club
operations;
sites investigated are relevant to Club
trading activities or planned capital
works (such as renovations or
extensions) or investment;
| 38
OVERSEAS TRAVEL
c)
d)
e)
the travel is necessary to ensure that
the Club and Directors exchange ideas
with international operators, and take
account
of
international
developments and best practice in
areas of high priority to the Club; so as
to
enhance
the
reputation,
attractiveness and competitiveness of
the Club as a business;
other avenues for obtaining the same
information, knowledge or experience
have been considered, that in order to
properly evaluate a concept that is
relevant and important to Club
activities (i.e. one that has been
successful overseas) Board or
management representative(s) need
to see it in operation. Having seen it,
those representative(s) will be in a
better position to evaluate and report
on its merits; and
the frequency of overseas travel is
within reasonable expectations, given
the
Club’s
circumstances
and
resources.
All overseas travel should be planned and
budgeted-for in accordance with the Club’s
capacity to pay. Expenditure on overseas
travel should be regarded as discretionary.
All overseas travel applications should be
considered and ultimately approved by the
Board by way of a formal resolution
recorded in the minutes of a board
meeting.
a)
b)
c)
d)
6. OVERSEAS TRAVEL REPORTS
As a condition of official overseas travel,
the Director or manager should provide a
written report to the Board on return from
an overseas trip. The following elements
should be included in a report:
a)
b)
c)
5. TRAVEL EXPENSES
Those representing their Club on overseas
trips should ensure that their expenses are
reasonable and justifiable. At all times
economy should be exercised.
Clubs should set and document
appropriate limits for the following
expenditures:
alternatives to business class airfares
such as premium economy or
economy should be considered, where
appropriate and in accordance with
the Club’s capacity to pay;
in general, travel and all other
expenses for a partner should be at
the person’s own expense, not the
Club’s, though the person should be
able to downgrade their airfare (e.g.
from business to premium or
economy) in order to take their
partner;
accommodation should be at a
standard equivalent to that used for
domestic travel; and
meals and incidentals – a guide to
appropriate rates is published
annually by the ATO 32 in its ruling
dealing with reasonable travelling
allowance amounts.
d)
e)
32
dates of travel and places visited;
objectives of the trip and how those
objectives were met or if they were
not met then the reasons for this;
details of expenses incurred by the
Club;
benefits to the Club and its members;
and
recommendations and/or action plans
arising from the overseas trip.
See
http://law.ato.gov.au/atolaw/view.htm?Docid=TX
D/TD201217/NAT/ATO/00001&PiT=9999123123
5958
| 39
7. INFORMING MEMBERS
Section 18(2) of the Registered Clubs
Regulation requires that Clubs make
available to members the information of
any overseas travel by a Club Director or
employee in an official capacity including
associated costs met by the Club. Clubs are
required to display a notice on the Club’s
premises and on the Club’s website
advising how members can access such
information; and members may view the
information by way of written request to
the Club.
For further information on this subject
refer to the Guideline for Financial
Reporting.
8. OVERSEAS TRAVEL AS AN
INDUCEMENT TO PURCHASE
GOODS OR SERVICES
Inducements of overseas travel should not
influence Club procurement decisions.
Inducement for the purchase or provision
of goods or services is regulated by section
43A of the Registered Clubs Act 1976.
Section 43A(1) prohibits a person providing
or offering to provide or causing to be
provided or offered to a registered Club or
any other person any benefit or advantage
as the whole or a part of the consideration
for the purchase by, or provision to, the
Club of goods or services unless the benefit
or advantage:
a)
b)
is to be received by the Club and
comprises money or money’s worth
(including any trade-ins) that is clearly
set out in a written agreement for
purchase or provision of the goods or
services, or
is clearly set out in a written
agreement and comprises reasonable
training of a member of the staff of
the Club in the operation or
maintenance of approved gaming
machines.
Subsection (3) of section 43A provides that
a Registered Club or other person is guilty
of an offence if the Club or other person
accepts or agrees to accept the benefit or
advantage that is offered. The maximum
penalty for each offence is $11,000.00.
Suppliers who offer inducements such as
overseas travel as part of the marketing of
their products or services typically recover
these costs through the final price paid by
the Club for the product or service. There
may also be a presumption by the supplier
of future favourable purchasing decisions.
Clubs whose directors or staff accept such
inducements may be found not to have
acted in the best interests of members due
to a perceived or actual conflict of interest
as well as being guilty of the criminal
offence of breaching section 43A.
In principle, overseas travel with suppliers
must only be for genuine educational
purposes, not an inducement to purchase
products or services. The important
criterion to be borne in mind is that the
Club, as a whole, should gain (and be seen
to gain) the benefit of the travel
opportunity, rather than the individual
undertaking the travel. This is essential to
avoid giving rise to perceptions of conflicts
of interest in respect of any subsequent
purchase of goods or services from the
supplier.
Sponsored travel includes cases where
transport, accommodation or living
expenses are paid for or provided other
than from the Club’s own funds or the Club
representative's
own
resources.
Acceptance of such travel may lead to the
perception that the Club director or
employee is favouring the organisation
concerned or using their position with the
Club to gain a personal benefit.
| 40
OVERSEAS TRAVEL
Clubs being offered ‘free’ overseas travel
or other inducements by a supplier should
request the supplier put the offer in writing
to outline details of the offer and explain if,
and how, it complies with legislative
requirements of the Registered Clubs Act.
any person to receive the benefit
or advantage, or take part in the
selection of such a person, or
make any representations in
relation to the selection of such a
person.
Details of offers of sponsored travel should
be referred to the full board for
consideration before they are accepted
and a record of decision, including the
rationale for accepting the hospitality,
recorded in the minutes of the meeting.
Once again, the maximum penalty is
$11,000 for each offence. However, the
offence in these circumstances, is
committed by the person making the offer.
When boards are considering details of any
benefit or advantage, including sponsored
travel from a third party, they need to be
aware of section 43A(2) of the Registered
Clubs Act which provides:
A person who provides, or offers to
provide, or causes to be provided or
offered, to a registered Club a benefit
or advantage for use by a person, or
by more than one person individually,
is guilty of an offence unless:
(a) the benefit or advantage is
openly and generally available to
all Clubs or other persons or to
those of a specified class or
specified classes, and
(b) the benefit or advantage is
predominantly educational and
relates to a specific and genuine
course of study, and
(c) the benefit or advantage would
be of significant assistance to the
Club, and
(d) the person making the offer does
not, in making the offer or before
a decision on the offer is made by
the Club, select a person to
benefit from the offer or make
any representations in relation to,
or take part in, the selection of
such a person, and
(e) the person making the offer does
not, if the offer is accepted, select
However, the various conditions which
must be met should act as a guideline for
directors and senior management when
considering sponsored travel from a third
party.
In the case of managers or other staff, it
makes no difference if sponsored travel is
undertaken during a period of leave.
Overseas travel will not be considered an
inducement if the travel is in connection
with or coordinated by a supplier and is
paid for wholly by the Club.
For best practice, and in order to avoid an
actual or perceived conflict of interest or
being guilty of an offence arising from an
inducement of overseas travel in
connection with a major capital investment
such travel should be approved by the
board and paid wholly by the Club,
regardless of whether the investment
would have been made without the offer
of an inducement.
For further information about proper
procurement processes Clubs should refer
to the Guideline for the Procurement of
Goods, Services and Major Capital Works.
9. EMPLOYMENT CONTRACTS AND
OVERSEAS TRAVEL
Employment contracts for Club employees
(including Senior Executives) may include
| 41
an entitlement to education opportunities
potentially delivered overseas. Clubs
should ensure that any overseas trips are
for educational/professional development
purposes and in the interests of the Club.
However, this entitlement should be
subjected to analysis as detailed above and
be regularly reviewed. For further guidance
on remuneration policy, refer to the
Guideline for Executive Remuneration.
| 42
BOARD OPERATION
1. PURPOSE
An effectively operating Board is an
essential component of an effective Club.
Effective Boards are clear about their
practices, their role and their results. This
Guideline aims to assist Members who
seek effective and efficient operation of
their Board by:

describing a framework for effective
Board functioning;

identifying best practice strategies for
Board functioning; and

affirming
individual
responsibility.
Director
2. DEFINITIONS
‘Business plan’ means any plan for the
future administration of the Club (including
strategic and operational plans) developed
by senior management and approved by
the Board.
‘Close associate’ means any family
member, personal friend or business
associate of a Director.

Make decisions that are consistent
with the Club’s role/purpose and the
interests of members;

Comply with any relevant legislative,
industrial
and
administrative
requirement and keep up to date with
any changes;

Maintain adequate documentation to
support any decisions made;

Treat each Club member and staff
members with courtesy and sensitivity
to their rights;

Provide all necessary and appropriate
assistance to members of the Club;

Promote a culture of continuous
professional
development
and
training;

Strive to obtain value for Club money
spent and avoid waste and
extravagance in the use of Club
resources;

Contribute to a safe, healthy and
discrimination-free Club environment;
and

Not take or seek to take improper
advantage of any Club information
gained in the course of their
appointment (in the case of Directors)
or employment (in the case of
managers/staff).
‘Material personal interest’ means the
Director stands to personally benefit
financially or in some other material way.
‘Board charter’ means an agreement that
outlines the role, structure and
responsibility of the Board.
3. GUIDING PRINCIPLES
Boards should pursue the aims and
purpose of their Club by actively ensuring
that management and staff:
The Board should have a clearly defined
and expressed statement 33 or equivalent
expression of their aims and purpose as an
organisation. This should be clearly
communicated
to
members
and
stakeholders.
33
Normally, this is contained in the Club’s
Constitution.
| 43
4. FUNCTIONS OF THE BOARD OF
DIRECTORS
law, accounting, public administration and
marketing.
The Board of a Club is responsible to
members for the overall governance and
performance of the Club. The functions of
the Board include the following:
Board make-up should be representative of
the Club membership. For example, Clubs
that have a large number of women in
membership should actively encourage
appropriately qualified women to seek
directorship. Clubs should avail themselves
of the services of the Club Directors
Institute of ClubsNSW to provide training
to prospective Board candidates from
under-represented segments of the
membership.

Providing strategic direction to the
Club by constructive engagement in
the development, execution and
modification of the Club’s strategy;

Appointing the Club manager and
approving succession plans;

Monitoring the performance of the
Club manager and approving senior
management remuneration policies
and practices;

Reporting to members and ensuring
that all regulatory requirements are
met;

Providing advice and counsel to
management on a periodic and ad hoc
basis, adding strategic value;

Ensuring appropriate compliance
frameworks and controls are in place;

Approving policies governing
operations of the Club;

Monitoring financial results on an
ongoing basis;



the
Boards should be of an optimum size34,
according to the needs of the Club.
Excessively large Boards tend to be
inefficient and should be avoided.
However, diversity on the Board is
encouraged.
6. ETHICS
In accordance with legal and statutory
requirements, Directors should:

Ensuring the Board’s effectiveness by
operating as a team;
Discharge their duties in good faith
and act honestly, in the best interests
of the Club, and with the level of skill
and care agreed in their role
expectations;

Ensuring the Club’s business is
conducted ethically and transparently;
and
Act with required care and diligence,
demonstrating
commercial
reasonableness in their decisions;

Declare any conflicts of interest35;

Act for the benefit of the Club at all
times;

Not make improper use of information
gained through their position as a
34
The optimum size of the Board is six Directors
plus Chair.
Consistent with the requirements of the
Registered Clubs Act 1976, a Director of a club
who has a material personal interest in a matter
that relates to the affairs of the club must as
soon as practicable declare the nature of the
interest at a meeting of the Board of Directors.
Overseeing
management.
strategic
risk
5. BOARD COMPOSITION
To provide competent leadership and
direction, Boards should contain, if
available, an appropriate mix of skills from
professions such as business, management,
35
| 44
BOARD OPERATION
Director or otherwise take improper
advantage of the position of Director;
9. CONDUCT OF BOARD MEETINGS

Not allow personal interests, or the
interests of any close associate, to
conflict with the interests of the Club;
Key criteria for the conduct of Board
meetings are:

Make reasonable enquiries to ensure
that the Club is operating efficiently,
effectively and legally towards
achieving its goals; and

The Board should meet at least
monthly on previously determined
dates and conduct special meetings at
the request of the Chair;

Undertake diligent analysis of all
proposals placed before the Board.

The chair establishes the agenda for
each Board meeting. Board members
should be encouraged to suggest
items for inclusion on the agenda;

The agenda for each meeting should
be provided to the Directors in
advance of the meeting together with
written materials on certain matters
to be presented for consideration.
Management should endeavour to
provide material that is concise and
informative;

The agenda36 should, at a minimum,
include:
minutes of the last meeting and
business arising;
finance
(including
gaming
machine operations);
Chairs’ report;
tabling of ClubsNSW Circulars;
and
other business; and

Financial reports which accurately
reflect the true financial position of
the Club should be provided for each
Board meeting.
7. ROLE OF THE CHAIR
The Chairperson’s responsibilities include:

Providing appropriate leadership to
the Board and the Club;

Facilitating Board discussions to
ensure the core issues facing the Club
are addressed;

Maintaining a regular dialogue and
mentor relationship with the Club
manager;

Monitoring Board performance; and

Guiding and promoting the on-going
effectiveness and development of the
Board and individual Directors.
8. ROLE OF THE CLUB MANAGER
The Club manager is responsible to the
Board for the overall management and
performance of the Club in accordance
with the strategy, plans and policies
approved by the Board to achieve the
agreed results.
For more information on executive
appointments,
remuneration
and
evaluation refer to the Guideline for
Remuneration of Club Executives.
10. CONFLICTS OF INTEREST
If a Director has a real or potential material
personal interest relating to Club
procurement of goods and services and/or
major capital works, the nature of that
interest should be disclosed at the earliest
possible meeting of the Board.
36
See appendix 1 for model Board Agenda.
| 45
11. CONFIDENTIALITY
Directors have a duty to question, request
information, raise any issue which is of
concern to them, fully canvas all aspects of
any issue confronting the Club and cast
their vote on any resolution according to
their own judgement. Outside the
boardroom, Directors should support the
letter and spirit of Board decisions.
Directors should keep confidential Board
discussions, dialogue and decisions that are
not publicly known.
Confidential information received by a
Director in the course of the exercise of
directorial duties remains the property of
the Club and it is improper to disclose it, or
allow it to be disclosed, unless that
disclosure has been properly authorised, or
is required by law.
13. SUPPORTING TEAMWORK AND
DIVERSITY
Each financial year the Board should
facilitate:

A review and modification of the
Club’s strategic plan to ensure the
Club’s aims and purpose are realised;

The agreement of role expectations
for each Director that identifies what
results each Director has committed
to deliver to the Board;

Personal learning plans for each
Director, agreed with the Chairperson,
which identifies what and how new
skills should be developed, based on
the role expectations; and

The giving and receiving of
performance feedback for Directors by
their peers based on the agreed role
expectations.
12. BOARD SUB-COMMITTEES
The full Board is ultimately responsible for
the conduct of a Club’s affairs. However,
larger Clubs may opt for supervision of
major functional areas to be handled by
specialised Committees (e.g. audit and
remuneration) of the Board while ensuring
that the full Board remains ultimately
responsible for the Committees’ decisions.
It is important that all Committees should
be established with clearly defined
objectives, authorities, responsibilities and
tenure and that they report regularly to the
full Board. The Board should ensure that
the structure of each Committee is suitable
having regard to the Club’s size and
business, the Board’s composition and
individual Directors expertise.
14. RELATIONSHIP BETWEEN BOARD
AND MANAGEMENT
Club Directors decide what matters are
delegated to management and should
ensure that adequate controls are in place
to oversee the operation of these
delegated powers.
Except in smaller Clubs with few paid staff
where the use of volunteer staff is
required, Directors should not participate
in the day to day management of the Club.
Agreements with suppliers, customers,
employees, consultants, professional firms
or other parties or organisations should be
made by management unless such an
authority is explicitly delegated by the
Board to a Director, either individually or
as a member of a Committee.
| 46
BOARD OPERATION
15. STRATEGIC PLANNING
A critical role of the Board is to ensure that
the Club is pursuing an appropriate
strategy in line with its aims and purpose.
To achieve this, the Board should
constructively engage with management
concerning the development, execution
and modification of the Club’s strategy.
governance in the execution of the
responsibilities reserved for the Board.
Management, in consultation with the
Board should review and update the Board
Charter annually, with all Directors
required to review and ‘sign-on’ to the
Charter following each election. 37
Management and the Board should agree
on the processes used to develop the
Club’s strategy and business plan. Each
financial year management and the Board
should discuss the substantive elements
that are to be considered in the
development and execution of the
strategy.
Management then prepares and proposes
a written strategy for consideration and
approval by Directors. The approved
strategy forms the basis for the business
plan, which is also prepared by
management
and
considered
and
approved by the Board.
In reviewing the strategy and business
plan,
Directors
should
consider
implementation and timing issues and
monitor on a continuing basis the
execution of the strategy against
milestones and targets set down in the
business plan.
The full Board should review and approve
the strategic and business plans, including
financial objectives and budgets.
16. BOARD CHARTER
The implementation of Board Charters for
both Boards of Directors and Committees
is becoming more commonplace to ensure
that all Directors/Committee members are
aware of their roles and responsibilities. A
Board Charter endeavours to provide the
framework for the Board to deliver best
practice
standards
of
corporate
37
See Appendix 2 for model Board Charter.
| 47
Appendix 1:
MODEL BOARD AGENDA
1.
MINUTES

Monthly Board of Directors Meeting [date]
2.
FINANCIAL REPORTS [DATE]

Complete profit and loss comparing actuals to budget

Cash Payments report

Director Benefits Report

ClubGRANTS Report

Bank Reconciliation

Cash at Bank

Statement that all Creditors have been paid in accordance with Club policy
3.
COMPLIANCE REPORT

ATO Activity Statement has been paid

Payroll Tax has been paid

Superannuation contribution has been paid

Copies of Insurance and Workers Compensation payments (yearly)

Essential Services

WH&S Committee Report
4.
CORRESPONDENCE (INCLUDING ALL CLUBSNSW CIRCULARS)
5.
SECRETARY MANAGER’S REPORT
6.
GAMING REPORT

Detailed listing to ensure compliant with legislation
7.
NEW MEMBERS – APPROVAL
8.
FUNCTIONS AUTHORITY – APPROVAL
9.
CHAIR’S REPORT
10. CITATIONS
11. OTHER REPORTS
12. GENERAL BUSINESS
13. NEXT MEETING
| 48
Appendix 2:
MODEL BOARD CHARTER
1.
OVERVIEW AND PURPOSE OF THE
CHARTER
The operations and activities of [Club
name] and its subsidiaries are managed
under the direction of the Board of
Directors, in the best interest of the
members as a whole.
The Board is responsible for the business
and affairs of [Club name], except for
matters reserved for members in general
meeting. The Board is responsible to the
members of [Club name] for the direction
and performance of the Club. The Board is
governed by all applicable law, the Club
Constitution and the Club Code of Practice
and Best Practice Guidelines.
The purpose of this Charter is to set out
the functions, responsibilities and key
protocols of the [Club name] Board and the
basis of delegation of its authority to Board
committees and members.
2.
ROLE OF THE BOARD
The Board has responsibility to Club
members for the conduct of the affairs and
activities of [Club name]. In carrying out its
responsibilities, the Board undertakes to
serve the interests of all [Club name]
members, employees, other stakeholders
and the broader community.
Each Director of [Club name] will act in
good faith in the best interests of [Club
name] as a whole and collectively oversee
and appraise the strategies, major policies,
processes and performance of the
company using care and diligence to
ensure that [Club name)’s long-term
sustainability is assured.
3.
STRUCTURE AND COMPOSITION
OF THE BOARD
The [Club name] Constitution provides for
the election of [number of] directors made
up
of
a
[President/Chair,
Vice
President/Chair etc] and [insert] ordinary
directors. The directors are elected
[annually/biennially/triennially]
to
[one/two/three] year terms of office.
Board elections are held pursuant to clause
[clause number] of the Constitution. Each
Director will hold office until the applicable
Annual General Meeting and/or as
determined by the Constitution.
(Further information is available from paragraph 5 of
the Best Practice Guideline for Board Operation).
4.
BOARD RESPONSIBILITIES
The Board is responsible to members for
the overall governance and performance of
the Club, for determining the strategic
direction of the Club and monitoring Club
management’s implementation of that
strategy.
The Board:

Selects and appoints the Secretary
Manager and identifies an appropriate
succession plan;

Determines the Secretary Manager’s
conditions of service, delegates
responsibilities and monitors his/her
performance against established
objectives;

Approves
senior
management
remuneration policies and practices;

Monitors financial outcomes and the
integrity of reporting, particularly
| 49
approving annual budgets and longerterm strategic and business plans;

Sets specific limits of authority for
management to commit to new
expenditure, enter new contracts or
acquire businesses without Board
approval;

Approves acquisitions and disposals of
businesses and investments above the
delegated limits of authority;

Approves significant changes of key
policies;

Monitor compliance with legislative
requirements and ethical standards
and reporting back to members on
these issues;

Appoints any such Committees of the
Board as may be appropriate to assist
in the discharge of its responsibilities,
determines their responsibilities and
approves a charter for each
Committee;

Ensures that the Club conforms with
the principles and practices of
economic, social and environmental
sustainability and best practice
wherever possible;

Ensures that the Club’s business is
conducted ethically and transparently;

Oversees strategic risk management;
and

Meets in accordance with the
Constitution and By-Laws of the Club
and any other relevant legislative
requirements.
5.
CLUB CONSTITUTION
The Board is governed by the Constitution
of [Club name]. This Charter supports the
Constitution of [Club name]. The
Constitution takes precedence in the event
of inconsistency.
6.
DELEGATIONS OF AUTHORITY AND
COMMITTEES
To assist in the discharge of its
responsibilities, the Board has delegated
the following responsibilities to the
Secretary Manager and Committees.
Secretary Manager:

The Board delegates the responsibility
for the day to day operation and
management of the Club’s business to
the Secretary Manager;

A Director will not interfere with the
day
to
day
operation
and
management of [Club name], and will
make all enquiries concerning
employees, contractors or the
operation of the Club to the Secretary
Manager;

Management must report to the
Board on a regular basis to maintain
accountability and to inform the Board
so that it can make its decisions in the
best interests of [Club name] and the
members as a whole;

Deals
with
attendance
of
management and invited experts at
Board meetings; and

The Board will ensure that it retains its
independence which may require
independent expert advice from time
to time.
(Further information is available from
paragraph 14 of the Best Practice Guideline for
Board Operation).
Board Committees:

The Board, in accordance with the
Club Constitution, may form advisory
and other Board Committees to assist
in carrying out its responsibilities;

The Board will appoint the members
of each Committee, including each
Committee Chair who will be
| 50
BOARD OPERATION
responsible for governing the
Committee and may allow for external
expertise where appropriate;


The Board will establish Charters
setting out matters relevant to the
composition, responsibilities and
administration of the Committees and
other matters that the Board may
consider appropriate; and
A Committee to which any powers
have been delegated must exercise
the powers delegated in accordance
with the Charter for that Committee,
as approved by the Board from time
to time.
8. ROLE OF THE CHAIR
The responsibilities of the Chair are
principally to:

Lead the Board;

Chair Board and General Meetings of
the Club competently, ethically and
transparently and ensure Board
effectiveness;

Ensure that general meetings are
conducted efficiently and that
members have adequate opportunity
to express their views and obtain
answers to their queries;

Liaise with the Secretary Manager to
ensure that new Board members are
briefed and have access to
information on aspects of the Club’s
operations;

Facilitating the effective contribution
of all Directors;

Establish the agenda for Board
meetings in consultation with the
Secretary Manager;

Be the main point of contact and
communication between the Board
and the Secretary Manager, ensuring
that
the
Board’s
views
are
communicated clearly and accurately;

Lead the review of the Board’s
performance and the review of the
Secretary Manager’s performance,
ensuring that the delegated authority
of the Secretary Manager and
expected key performance criteria for
the Secretary Manager are clear;

Ensure that there is regular and
effective evaluation of the Board’s
performance;

Set a standard for Board members in
terms of attendance at meetings and
prior familiarity with Board Papers
7. DIRECTORS’ DUTIES
Directors must carry out their duties in
compliance with all applicable law
including the Corporations Act, [Club
name] Constitution and By-Laws, the Club
Code of Practice and Best Practice
Guidelines and all Club policies and
procedures. In discharging his/her duties,
each Director must:

Exercise care and diligence;

Inform themselves about the subject
matter of a decision to the extent they
reasonably believe to be appropriate;

Act in good faith in the best interests
of the Club;

Declare any material personal interest
or pecuniary/financial interest they
have in the affairs of the Club;

Not improperly use his/her position or
misuse information of the Club;

Maintain Board confidentiality at all
times;

Commit the time necessary to
discharge effectively his/her role as a
Director; and

Engage in ongoing skill development
in relation to their role as Director.
| 51
distributed and issues to be raised;
and

Be the media spokesperson for the
Board where appropriate and
represent the Club’s interests.
(Further information is available in paragraph 7 of
9.
ROLE
OF
MANAGER
THE
The role of the Secretary Manager includes
but is not limited to:

Organising Board Meetings, Agendas,
Board Papers etc;

Monitoring compliance with the Club
Constitution and this Charter;

Advising the Board on compliance
with meeting procedure (in line with
paragraph 9 of the Best Practice
Guideline for Board Operation); and
Preparing minutes of Board meetings,
arranging approval of minutes and
entering into minute book within one
month of the meeting.
10. BOARD
ATTENDANCE
MANAGEMENT
BY
In the interests of ensuring the full
accountability and support of the Secretary
Manager by the Board, the Secretary
Manager (or in his/her absence the Acting
Secretary Manager) is, in general, the only
However, the Secretary Manager at his/her
discretion and in consultation with the
Chair, may arrange for senior staff
members to attend parts of Board
meetings where he/she determines that
there is benefit in relation to his/her
providing clarification to the Board.
SECRETARY
The Secretary Manager is responsible for
the day to day management of [Club name]
in an efficient and effective manner. The
Secretary Manager is to have a formal
employment agreement describing his/her
term of office, duties, rights and
responsibilities and entitlements on
termination.

member of management who attends
Board meetings.
11. BOARD AND DIRECTOR MEETINGS
Full Board meetings will occur at a
frequency determined by the current
Constitution of [Club name] and the
Registered Clubs Act, which is generally at
least once each month.
Board Meetings are be conducted in
accordance with the Club Constitution,
standing orders and fair rules of debate.
Sub-committee meetings will occur at a
frequency determined by the current
Constitution of [Club name] or at a
frequency determined by the Board which
is congruent with any requirement of the
Constitution.
12. PROFESSIONAL DEVELOPMENT
Prior to and after their election, each
Director is to commit to ongoing education
and professional skills development as
determined by the Board, ClubsNSW or
applicable law, and is subject to annual
review. The Board will have access to
resources and training specific to the Club
Industry as offered by ClubsNSW and other
providers.
| 52
BOARD OPERATION
13. CLUB CODE OF CONDUCT AND
PROTOCOLS
The Board and Directors will be guided at
all times by the Club Code of Practice as
published by ClubsNSW and from time to
time revised. Directors are bound by the
principle of transparency and will at all
times ensure that issues are discussed in
open forums where the Board is able to
openly evaluate strategies, ideas and
suggestions.
17. AMENDMENT OF THE CHARTER
This Charter has been adopted by the
Board. Any amendment to this Charter can
only be approved by the Board.
The Secretary Manager is responsible for
reviewing this Charter on an annual basis
to ensure its continued compliance with
legal requirements, corporate governance
requirements applicable to the Club and
the Club Code of Practice, and if necessary,
suggesting amendments to the Charter for
consideration by the Board.
14. REVIEW OF PERFORMANCE
The Board will conduct regular reviews of
its performance. The method of conducting
each review and the extent of that review
is for the Board to determine from time to
time and in conjunction with the [Club
name] Constitution and Club Code of
Practice.
The Chair or the Board may elect to be
assisted by an external independent
agency in undertaking the Review of
Performance. The review of the Chair’s
performance will also be conducted in
accordance with this Charter.
15. REVIEW OF THE CHARTER
The Board will regularly review this Charter
and the Charters of Board Committees to
ensure they remain consistent with the
Board’s objectives and responsibilities and
relevant
standards
of
corporate
governance.
16. PUBLICATION OF THE CHARTER
This Charter will be made available to the
Club’s members upon request and key
features may be outlined in the [Club
name] Annual Report.
| 53
FINANCIAL REPORTING
1.
PURPOSE
The purpose of this Guideline is to improve
the accuracy and transparency of Club
financial reporting. The guideline informs
Clubs on their legal financial reporting
obligations, and suggests ways of
improving the flow of financial information
to members.
2.
GUIDING PRINCIPLES
Financial reports should be prepared in
accordance with Accounting Standards and
all mandatory professional reporting
requirements and the Corporations Act
2001. Reports should cover the Club and
any other Club or entity it controls. To the
extent possible, all Members should aspire
to a common set of benchmarks for
financial reporting that constitute industry
best practice.
3.
BACKGROUND
The various Acts and accounting and
auditing standards spell out the
information that must be declared in a set
of published financial accounts. Clubs that
adhere to the provisions of legislation and
standards will provide their members and
other
stakeholders
with
sufficient
information in order to ascertain the
financial performance of the Club as well as
its financial viability.
While there is a great deal of commonality
among Clubs (e.g. revenues from bar sales,
gaming machines, membership fees, etc)
there is also a great deal of diversity. Apart
from the fact that some Clubs may be RSLs,
some bowling, some golf, some leagues,
some sporting and some ethnic, they often
have differences that may affect their
respective chart of accounts. This is
compounded by the fact that some Clubs
are large while others are small, and many
are members of an amalgamated entity.
Additionally, some may derive revenues
from other non-Club business activities.
This Guideline has been developed in the
full knowledge that a single, industry-wide,
standardised set of accounts will be
difficult to achieve. Nevertheless, it is
considered that an industry best practice
benchmark be established as a model to
which all Members should aspire.
4. REPORTS REQUIRED BY THE
REGISTERED CLUBS ACT 1976 AND
REGULATIONS
Financial Reporting
The financial reporting requirements for
Clubs have been transferred from the
Registered Clubs Act 1976 into Section 17
of the Registered Club Regulation 2009.
Clubs must now prepare and make
available to members on a quarterly basis:

profit and loss and trading accounts
for the quarter; and

a balance sheet as at the end of the
quarter.
These financial statements must be
provided to the Club governing body and
made available to members within 48
hours of them being adopted by the
governing body.
Clubs must display a notice on the Club’s
premises and website, in the form
| 54
FINANCIAL REPORTING
approved by the OLGR 38 , advising how
members can access the information, with
Clubs required to provide this information
to any member or Director when
requested in writing.
e)
f)
Provision of Information to Members
Reporting
The provision of information to members
reporting requirements are now contained
in Section 18 of the Regulation. The
information to be recorded is as follows:
a)
b)
c)
d)
any disclosure, declaration or return
received by the Club under Division 2
of Part 4A of the Act during the
reporting period;
the number of top executives of the
Club (if any) whose total remuneration
for the reporting period (comprising
salary, allowances and other benefits)
falls within each successive $10,000
band commencing at $100,000;
details (including the main purpose) of
any overseas travel during the
reporting period by a member of the
governing body of the Club or an
employee of the Club in the person’s
capacity as a member of the governing
body or employee, including the costs
wholly or partly met by the Club for
the member of the governing body,
employee and any other person
connected with any such travel;
details of any loan made during the
reporting period to an employee of
the Club if the amount of the loan
(together with the amount of any
other loan to the employee of the
Club that has not been repaid) is more
than $1,000, including the amount of
the loan and the interest rate, if any;
g)
h)
i)
j)
k)
l)
38
The notice must be printed in colour, not less
than A4 size and displayed conspicuously on the
main notice board. It may also be
purchased from the Office of Liquor, Gaming and
Racing (OLGR).
details of any contract approved
during the reporting period under
Section 41M of the Act;
the name of any employee of the Club
who the Club is aware is a close
relative of a member of the governing
body of the Club or of a top executive
of the Club and the amount of
remuneration package paid to the
employee;
details of any amount equal to or
more than $30,000 paid by the Club
during the reporting period to a
particular consultant, including the
name of the consultant and the nature
of the services provided by the
consultant;
the total amount paid by the Club
during the reporting period to
consultants (other than amount
required to be included under
paragraph (g));
details of any settlement made during
the reporting period with a member of
the governing body of the Club or an
employee of the Club as a result of a
legal dispute and the amount of any
associated legal fees incurred by the
member or employee that were or are
to be paid by the Club, unless the
disclosure of such information would
be in breach of any confidentiality
provision agreed to by the Club;
details of any legal fees (note referred
to in paragraph (i)) paid by the Club on
behalf of a member of the governing
body of the Club or an employee of
the Club;
the total amount of the profits (within
the meaning of the Gaming Machine
Tax Act 2001) from the operation of
approved gaming machines in the Club
during the gaming machine tax period
relating to the reporting period; and
the amount applied by the Club during
the gaming machine tax period to
community development and support
| 55
under Part 4 of the Gaming Machine
Tax Act 2001.
Clubs must record the above information in
a form approved by the Director General39
and make the information available to
members of the Club within four (4)
months after the end of the reporting
period to which the information relates.
Clubs must display a notice on the Club’s
premises and website, in the form
approved by the Director General 40 ,
advising how members can access the
information, with Clubs required to provide
this information to any member or Director
when requested in writing.
5. REPORTS REQUIRED BY
CORPORATIONS ACT 2001
THE
The Corporations Act 2001 requires that
Clubs prepare audited financial reports on
an annual basis.
them that the annual report will be
accessible on the Club website, but
allowing them to elect to receive the
annual report separately either in hardcopy
or (if offered by the Club), by fax or email.
This is a once only requirement – it does
not need to be done each year.
Clubs still have to produce both a full
annual report (comprising the financial,
Directors’ and auditor’s reports) and a
concise report.
7. ‘SUNDRY’ OR ‘MISCELLANEOUS’
EXPENSES
Clubs should not in either full or concise
financial accounts excessively group
expenses. A limit should be placed on the
value that can be accumulated under the
sundry expenses category. The limit should
be 5% of the total expenses generated by
the business during the year.
8. AMALGAMATED CLUBS
6. CONCISE ACCOUNTS
Clubs are allowed to choose to provide
their annual report to members by
publishing the concise version on the Club
website. However, Clubs that make that
choice must also provide the report in hard
copy (or, if offered by the Club, by fax or
email), to members who choose to receive
it this way. This is to be done free of
charge.
Clubs wishing to provide concise reports
must write to all existing members advising
39
40
Members of individual Clubs within an
amalgamated group may be interested in
the performance of their particular venue.
This is particularly likely when there are
large differences in the geographical
location of such amalgamated entities.
The consolidated accounts should clearly
spell out the operating profit or loss from
each venue. At a minimum, an abridged
version of trading as well as profit and loss
accounts for each venue should be made
available to members of individual Clubs.
The club must keep records concerning the
Club’s management and administration in either
electronic or hard copy form, so that it may be
viewed by a member attending the Club who has
made a written request to view such records.
The notice must be printed in colour, not less
than A4 size and displayed conspicuously on the
main notice board. It may also be purchased
from the Office of Liquor, Gaming and Racing
(OLGR).
| 56
COMMUNITY SUPPORT
1. PURPOSE
The purpose of this Guideline is to assist
Clubs to meet their community support
obligations, as set down in their
Constitution, by helping them to identify,
value and report (i.e. benchmark) the
extent of their contribution to the
community.
Clubs with gaming revenues of $1 millionplus participate in the ClubGRANTS
(formerly CDSE) Scheme and must comply
with the requirements of that scheme.
For more detail on ClubGRANTS visit
www.Clubsnsw.com.au.
2. DEFINITIONS
‘‘Category 1’ means expenditure on
specific community welfare and social
services,
community
development,
community
health
services
and
employment assistance activities.
‘Category 2’ means expenditure on Club’s
core purpose activities and other
community development and support
services not included under Category 1.
‘Category 3’ means money paid to a statewide funding pool for large scale projects
associated with sport, health and
community infrastructure.
‘ClubGRANTS is a state-wide initiative
whereby Clubs provide financial support
for projects and services that contribute
to the wellbeing of their communities.
Clubs that earn over $1 million annually in
gaming machine revenue provide funding
for community projects and services, and
in turn receive an equivalent tax rebate.
‘Community support’ means both cash
and ‘in kind’ contributions made by Clubs
to
community
organisations
and
programs.
‘In-kind’ means non-monetary.
3. BACKGROUND
Clubs exist to promote the interests of
their members and the surrounding
community. They achieve this by, among
other things, building and maintaining
facilities and local infrastructure and
providing cash donations and in-kind
support for charities and community
groups.
The most visible mechanism for
community support is ClubGRANTS.
However, Clubs that earn less than $1
million from gaming do not participate in
ClubGRANTS; thus, the value of their
community
contributions,
although
significant, is not well understood. Even
Clubs that do participate in ClubGRANTS
often provide additional benefits to the
community that fall outside the
parameters of that scheme and go
unaccounted-for.
By better understanding the nature of
their own community contributions, Clubs
will be able to better understand and
improve the effectiveness of the cash and
in-kind support they provide.
4. GUIDING PRINCIPLE
Clubs should meet their community
support
obligations
(including
ClubGRANTS) and maximise their financial
commitment to, and support of,
| 57
community projects, consistent with the
Club’s purpose.
5. CATEGORY 1 EXPENDITURE
Eligible Category 1 expenditure is for
projects and/or services that contribute to
the welfare and broader social fabric of
the local community, and are aimed at
improving the living standards of low
income and disadvantaged people.
Community Welfare and Social Services

Family support;

Supported emergency or low cost
accommodation;

Counselling services;

Childcare and child protection;

Aged, disability or youth services;

Veteran welfare services

Services to victims of natural or other
disasters; and

Volunteer emergency services, such
as surf life-saving and rural fire
services.
Community Development

Neighbourhood centre activities;

Community education programs;

Youth drop-in facilities;

Community transport services;

Tenants’ services; and

State-wide or regional services
developing social policies and
providing
advocacy
for
local
community services.
Community Health Services

Early childhood health;

Child and family services;

Community nursing;

Therapy;

Community mental health services;

Health promotion initiatives;

Drug and alcohol services;

Palliative care/women’s
dental/disability services;

Aboriginal and Torres Strait Islander
health services; and

Home and community care (HACC)
services.
health/
Funding for buildings and equipment for
in-patient care may be recognised as
Category 1 expenditure in certain limited
circumstances, so long as the expenditure
is identified by the ClubGRANTS Local
Committee to be of considerable
importance and value to the local
community. Otherwise such grants will
only be recognised as Category 2
expenditure. Funding for medical research
is not eligible as Category 1 expenditure.
Employment Assistance Activities

Employment placement services;

Group training;

Employment advocacy;

Community enterprises; and

Local job creation schemes.
Eligible Category 2 expenditure is that
expenditure allocated to community
development and support activities and
projects not listed under Category 1.
Category 2 expenditure has been
expanded to include expenditure on:

a Club's core activities including
sport,
returned
servicemen's
league/veteran welfare, golf course
and bowling green maintenance
including for wages paid to staff to
carry out maintenance; and

payments to professional and semi
professional sport, including the
National Rugby League, with the
| 58
COMMUNITY SUPPORT
exception of monetary payments to
professional or semi professional
players and their coaches and
managers.
However, there are a number of specific
funding allocations that are disallowed
under Category 2, as follows:

Professional
entertainers
and
entertainment provided for Club
patrons and used for the purpose of
directly
promoting
activities
associated
with
the
trading
operations of the Club;

Expenditure on a Club’s commercial
activities or activities directly related
to fulfilling its obligation under the
legislative and licence requirements
applying to its trading operations;
and

Capital and related expenditure on
Club facilities where the project is
primarily commercial in nature, or
related to the upgrading or
enhancement of gaming facilities, or
when the facility is operated on a
profit basis.
This is not a full account of all Category 1
and Category 2 criteria and exceptions.
Further information on Category 1 and
Category 2 expenditure and a copy of the
full ClubGRANTS Guidelines is available
on
the
ClubsNSW
website
www.Clubsnsw.com.au
Approximately $12
available each year.
million
will
be
The ClubGRANTS Category 3 Fund is
managed by the Office of Liquor, Gaming
& Racing (OLGR). The minimum funding
that can be approved for a single project
is $500,000 and the maximum is $2
million.
The OLGR has published Guidelines that
explain the application process and
eligibility criteria for Category 3 funds.
The Guidelines can be accessed at
www.olgr.nsw.gov.au/ClubGRANTS
Category3/.
Registered Clubs are ineligible to apply for
Category 3 funds. Additionally, projects
that have sought funding under
Categories 1 and 2 are also ineligible.
The following organisations are eligible to
apply:

A NSW not-for-profit organisation
that provides facilities and services to
the community;

Other incorporated not-for-profit
entities such as sporting Clubs,
charities, private schools, and
community groups; and

A body established by legislation,
such as a local government authority
or university.
To be eligible, an applicant must either:
In 2011 the ClubGRANTS scheme was
expanded with the development of the
ClubGRANTS Category 3, a state-wide
funding pool established to support the
development of large scale sport, health
and community infrastructure projects.
Under Category 3, 0.4 per cent of a Club’s
gaming profits over $1 million that would
otherwise be paid in tax is paid into the
ClubGRANTS
Category
3
Fund.

Own the land and the premises or
facility which is to be constructed or
enhanced; or

Be a trustee having care, control and
management of the land and the
premises or facility;

Possess tenure for the premises or
facility and have approval to
undertake
construction
or
enhancement; or
| 59

Intend to use the grant (if approved)
to purchase land in order to develop
a facility.
a)
All applications must have relevant
planning/building approvals granted or be
in the process of obtaining approval.
b)
c)
8. TREATMENT OF EXPENDITURE
‘IN-KIND’
Category 1 expenditure ‘in-kind’ provided
to the community is acceptable provided
that claims for such expenditure are
calculated at market rate, are properly
documented and are eligible for Category
1 expenditure. ‘In-kind’ expenditure
cannot exceed 20% of combined Category
1 and Category 2 ClubGRANTS.
However, Clubs may apply to the
Commissioner of the Office of Liquor,
Gaming and Racing (OLGR) for
exemptions to the 20% limit.
9. EXPENDITURE OUTSIDE OF NEW
SOUTH WALES
Expenditure on ClubGRANTS outside of
NSW is only recognised if it is made in
respect of services provided to victims of
natural or other disasters within Australia,
to locally based activities that are of a
genuine cross-border nature or to
nationally operating organisations with a
presence in NSW.
d)
e)
f)
g)
Has the Club supported this
[project/program/cause] before? If
so, has the recipient reported on the
previously funded project?
Has it applied for funding from other
registered Clubs?
Does the [project/program/cause]
historically receive funding from a
local Club in the area? If so, is
continued funding vital for its
viability?
Are other sources of funding
available from Federal, State or Local
government or other funding sources
for this [project/program/cause]?
Is the [project/program/cause] based
locally, regionally, state-wide or
nationally? Projects outside NSW
should not be funded.
represent good “value for money”?
duplicate existing services in the
same area?
When receiving funding applications,
Clubs should assess each application
based on its merits, consistent with the
ClubGRANTS guidelines; and give equal
consideration to both new applications
and to applications from organisations
which have an established relationship
with the Club and have received funding
in previous years.
For ClubGRANTS Clubs, Local Committee
funding priorities should be taken into
account.
10. FUNDING DECISIONS
Conflicts of Interest
The Selection Process
Clubs should avoid a situation where
funding decisions are influenced by the
interests of Directors or management.
Clubs should establish a fair, transparent
and consistent process for managing
funding allocations. The following
questions should be answered before
providing community support:
Directors and managers must declare any
conflict of interest in relation to the
provision of funding to a particular
organisation or group and withdraw from
| 60
COMMUNITY SUPPORT
the meeting during the discussion of any
such matter.
The list should include, for every grant
made:
General

The name
organisation
When providing cash or in-kind support
Clubs should be satisfied that:

The name of the program, project or
service funded

The total amount of the grant

Whether the expenditure
Category 1 or Category 2

Whether the funding was in cash or
in-kind

For in-kind expenditure, the nature
and value of each type of
expenditure

For Category 1 expenditure, the
subcategory of expenditure, as listed
in paragraph 2.1.Clubs should
recommend
that
benefiting
organisations list all ClubGRANTS
funding grants received in their
annual reports, and send copies of
these to their local committee.
a)
b)
c)
11.
the form of support is consistent with
the aims and purpose of the Club as
set out in the Constitution and Bylaws;
the support will benefit the wider
community; and
the support complements the work
of other local bodies (Clubs, local
government, churches, charities etc).
REPORTING
Reporting to members
Clubs should make every attempt to
publicise the programs, projects or
services for which funding has been
provided.
Clubs should conduct an annual
assessment of their community support
activity, using the categories outlined in
this Guideline. The results of the
assessment should be reported to
members, either as part of the annual
report or separately.
Regardless of the number of categories,
or prescribed percentage allocations, it is
essential that all expenditures and in-kind
benefits
are
correctly
identified,
quantified and reported.
Paragraph 4.10 of the ClubGRANTS
Guidelines state that Clubs should make
every attempt to maintain on a publiclyaccessible website, a list of all programs,
projects or services for which funding has
been provided in the current and previous
gaming machine tax year. The list should
be updated twice a year.
of
the
benefiting
was
Reporting to the Office of Liquor, Gaming
and Racing
Clubs claiming a tax deduction under
ClubGRANTS must satisfy the OLGR that
appropriate expenditure has been applied
to Category 1 and Category 2 purposes.
A standard electronic form has been
developed for reporting this expenditure
which is available from the OLGR website
www.olgr.nsw.gov.au. The form must be
completed by qualifying Clubs and
submitted within 7 days of the end of the
tax year (7 September of that year).
Clubs participating in the ClubGRANTS
scheme are required to keep funding
reports from benefiting organisations for
at least five (5) years in the event of later
review of either the Club or Organisation
by the Authority.
| 61
12. PARTICIPATION IN CLUBGRANTS
LOCAL COMMITTEES
contribution of 0.4% is automatically
deducted along with a Club’s quarterly tax
contribution.
ClubGRANTS Clubs should:
a)
b)
c)
d)
participate in the Local Committee
process, including attendance at
meetings;
provide their Local Committee with
details of each Category 1 funding
project, including:
i. name of funding recipient;
ii. nature of project;
iii. amount allocated; and
iv. whether the project aligned with
identified local community
priorities;
inform their Local Committee of any
pre-existing
or
long
term
commitments to organisations; and
obtain from the Local Committee a
certificate of attendance.
Clubs’ participation in the Local
Committee process requires more than
simply attending meetings. Clubs should
be open with information about past and
future funding allocations, as well as
playing an active role in identifying local
priorities, agreeing on the process and
criteria for reviewing applications, and
then assessing applications received.
It is recommended that Clubs allocate a
minimum of 75% of Category 1 funds in
accordance with the Local Committee’s
recommendations.
13. QUALIFYING FOR THE MAXIMUM
CLUBGRANTS DEDUCTION
To qualify for the gaming machine tax
rebate of 2.25%, Clubs must contribute
0.75% of those funds to Category 1
purposes, with 1.1% to Category 2
purposes. Category 1 expenditure may be
used to cover shortfalls in Category 2, but
the reverse does not apply. A Category 3
As a general rule, it is important that
funding preference is not given to
projects or services that can be readily
assisted by an existing Government
funding program.
Clubs should be aware that any shortfall
will be returned to the Government in the
form of tax and that it is preferable to
expend these monies on worthy local
causes.
Full details on the criteria for Category 1
and Category 2 and further information
are available in the ClubGRANTS section
of
the
ClubsNSW
website
www.Clubsnsw.com.au
14. HOW TO MAXIMISE, RECORD
AND PROMOTE CLUBS’ SOCIAL
CONTRIBUTION
Recording and Promoting
Clubs should make every attempt to
publicise the programs, projects or
services for which funding or other
support has been provided. Clubs should
publish a list of benefitting organisations
and projects funded in their annual
reports, Club website and member
newsletters,
correspondence
and
magazines. Clubs should recommend that
benefiting
organisations
list
all
ClubGRANTS and other funding grants
received in their annual reports and other
communications.
Clubs should consider erecting signage
and
other
promotional
material
throughout prominent locations in the
Club, such as the entry, listing the
successful recipients and the projects
funded.
| 62
COMMUNITY SUPPORT
Where possible, Clubs should seek to
promote and generate media interest in
their social contribution though social
media tools such as Twitter and Facebook,
which allow Clubs to communicate with
members and the public at little to no
operational cost.
Events
Clubs should consider holding events to
promote a Club’s support for the
community through ClubGRANTS and
other funding, and to raise awareness of
the Club's role in developing and
supporting community organisations.
Events to consider conducting include
(but not exclusive to):


ClubGRANTS launch: At the beginning
of each ClubGRANTS year, Clubs
should consider hosting an applicant
information day, highlighting how
the ClubGRANTS scheme works and
how to apply. Clubs should seek to
invite local media and previous
recipients of funding to speak about
their experience.
Cheque Presentations:
Where
possible, Clubs should seek to ask
one or more of the funding recipients
to speak about how the funding will
be applied. Clubs should seek to
invite Club staff, members of the
general public, local media and
respective local, State and Federal
Members of Parliament.
Engaging with politicians in social
activities reinforces to them the value of
the Club Movement, the support Clubs
provides to local organisations and the
way Clubs enhance the lives of members
and the general community, as well as
maximising the potential of photo
opportunities.
At every opportunity, Clubs should
actively inform their local representatives
of any good news stories regarding the
Club or the social contribution of the
Industry generally.
Media Releases
In most cases, local media is genuinely
interested in Clubs’ involvement with the
community and is on the lookout for good
stories that are happening in their local
area. Therefore, Clubs should actively
seek to build and maintain relationships
with local media.
Clubs should issue a media release that
highlights the people who benefit from
ClubGRANTS
and
underlines
the
community focus of the Club. This will
reinforce a positive public image and help
garner valuable coverage at little cost to
the Club. Clubs should make it clear that
the money came from the Club rather
than from local or state government.
The media release should include all the
key information and where possible, a
photo. A good media release will include
the following information:

Who will benefit from the project(s)?

What is the aim of the project(s)?

How much funding is the Club(s)
providing and how long will it last?

What is ClubGRANTS? (Use a
definition which emphasises Clubs'
community role)

Comment from Club President or
Committee Chairperson

Comment from funding recipient(s)

Comment from Mayor or State MP

A contact name and telephone
number for follow-up.
ClubsNSW can assist with the preparation
of media releases.
Leveraging Support
ClubGRANTS and community support is a
reciprocal relationship based on mutual
trust, respect and common objectives.
| 63
Clubs
should
view
benefiting
organisations not as ‘grantees’, but as
strategic partners. Therefore, Clubs
should not be afraid to leverage their
partnerships with benefiting organisations
in order to promote and maximise the
level of support provided to local
community.
When evaluating potential benefiting
organisations, Clubs should determine
whether the benefiting organisation
and/or project:

Is aligned to the Club’s objectives or
purpose, and those of the Club
Industry;

has received previous funding and/or
other support from the Club;

Is the most worthy recipient; and

has a structured organisation and
assets so that they can actively
promote and publicise the support
provided by the Club.
Clubs should review previous recipients of
funding and/or other support, and
determine
whether
appropriate
recognition and/or other support was
received
from
the
benefiting
organisations in return for the Club’s
social contribution.
| 64
COMPLAINTS HANDLING
1. PURPOSE
The purpose of this Guideline is to provide
Clubs with information regarding the
management of complaints.
2. DEFINITIONS
‘Complainant’ means an individual making
a complaint.
‘Complaint’ is any expression of
dissatisfaction with a product or service
offered by a Club or any other matter
relating to Club operations.
‘Systemic problem’ is failure(s) in the
design, delivery, policies or procedures of
a Club.
3. GENERAL PRINCIPLES
An effective complaints handling system
should:

improve the satisfaction of members,
visitors and staff;

recognise and protect an individual’s
right to complain;

be accessible, fair and efficient; and

enable the Club to channel feedback
into improvements in its services to
members.
Club management must be committed to
resolving complaints in a fair and effective
manner. This involves allocating the
necessary
resources to
receiving,
investigating
and
responding
to
complaints. It also means making the
process visible and accessible to all. For
example, some individuals may need help
putting their complaint in writing; the
Club should be willing to offer that
assistance.
Complaints should be dealt with quickly
and at no cost to the complainant.
Throughout the process, complainants
should be treated with courtesy and
respect.
Sometimes a complaint can signal a
systemic problem with the way the Club
operates. It is important that, when
systemic problems are revealed, the
necessary changes to policies and/or
procedures be made to prevent the
problem from recurring.
Finally, there needs to be proper record
keeping in regard to complaints handling.
4. COMPLAINT HANDLING
PROCEDURES
These are the recommended steps for
managing complaints:

The Club must make appropriate
arrangements to ensure that
complaints
are
received and
recorded by a responsible person
during normal office hours.

A complaint must be in writing and
contain the particulars of the
allegations upon which it is founded.

The Club must consider the
complaint as soon as practicable
after the complaint is received. It
may:
require the complainant to
provide further particulars of
the complaint;
| 65
-
-
-
-


41
carry out an investigation into
the complaint;
attempt to resolve the matter by
conciliation;
decline to entertain the
complaint because the matter is
considered frivolous, vexatious
or lacking in substance; or
conduct a hearing into the
complaint41.
After conducting a hearing into a
complaint against one or more staff
members, if the Club finds the
complaint substantiated, it may:
caution or reprimand the staff
member who is the subject of
the complaint;
require the staff member to
undertake specified remedial
training or instruction;
require the staff member to
apologise to the complainant, if
appropriate; or
undertake disciplinary measures
in accordance with industrial
relations legislation.
5. RECORD OF COMPLAINTS
A record of complaints should be kept by
Club management in written form and
should include:

the date and time the complaint was
received;

the name and address of the
complainant;

the substance of the complaint; and

the substance and date of the Club’s
response(s).
Each record should be retained by the
Club for a period of one (1) year from the
date of receipt of the complaint or for a
longer period if the Club so chooses.
After conducting a hearing into a
complaint that does not concern the
conduct of one or more staff
members, if the Club finds the
complaint substantiated, it may:
offer an apology to the
complainant;
offer financial compensation to
the complainant, if appropriate
and at the Club’s sole discretion;
with the agreement of the
complainant, refer the matter to
a third party for conciliation; or
undertake remedial measures to
avoid
recurrence
of the
circumstances giving rise to the
complaint.
For more information on conducting disciplinary
hearings refer to the guideline for Conducting
Disciplinary Proceedings.
| 66
The purpose of this Guideline is to inform
Clubs on how to follow the correct
procedure when conducting disciplinary
proceedings involving their members.
charge must not be affected by either
personal bias against the member or any
issue of pre-determination of the charge.
It is also important that the question of
guilt or innocence is answered separately
to the issue of penalty.
2. BACKGROUND
4. THE CLUB’S CONSTITUTION
One of the most contentious areas in Club
administration occurs when a member is
cited to face the Board of Directors for a
breach of the Club Rules.
Frequently, the Club’s Constitution may
provide that a committee may take
disciplinary action against a member and
report that action and reasons for the
action to the Board, together with a
recommendation as to further action (if
any) to be taken by the Board.
1. PURPOSE
Disciplinary matters can be stressful for
both the Board and the Club member
involved. Increasingly, members are
prepared to challenge the authority of the
Board in conducting these proceedings.
For their part, Boards face a difficult job in
administering their duties in this area.
However they have a responsibility to
follow correct disciplinary procedures as if
they do not, they can open the Club up to
potential legal action.
3. NATURAL JUSTICE
The fundamental principles which apply
to disciplinary action by Clubs against
members are the principles of natural
justice, now often referred to as
procedural fairness.
One principle of natural justice is the
accused member must be given full
particulars of the charge, be given a full
and fair opportunity to be heard and to
present his or her case in relation to any
charge and to call any witnesses before
the Board makes any determination.
Another principle of natural justice is the
Directors who hear and determine the
Only the Board or a properly constituted
disciplinary committee of the Board (if the
Constitution permits) may take action
involving a reprimand, suspension or
expulsion of a member from the Club.
The Board or disciplinary committee
should not pre-determine whether or not
the charge is substantiated, as to do so
will mean that the Directors on the
committee have made a determination on
the alleged breach without reference to
the principles of natural justice.
This Guideline should be read in
conjunction with the Club’s Constitution.
If the Constitution imposes additional
requirements to the Guideline, the Board
should follow the additional requirements
of the Constitution. For example, a Club’s
Constitution may allow the Board to
immediately suspend a member’s
privileges until their disciplinary hearing is
held.
If, on the other hand the Constitution
imposes fewer requirements than the
Guideline, the Board should consider
| 67
using the Guideline to supplement the
requirements of the Constitution.

If the member pleads not guilty then
the Chairman should advise the
member of the following conduct of
the disciplinary proceedings:
5. CONDUCTING A DISCIPLINARY
HEARING

The Club’s witnesses should be called
to give their evidence or read a
prepared statement.
The disciplinary proceedings should be
conducted in accordance with the
requirements of the Club’s Constitution.
The proceedings should be commenced
with the sending of a ‘notice of charge’
letter to the member. Care should be
taken to ensure the letter is not written in
such a way as to pre-judge the outcome
of the proceedings by implying guilt. A
suggested form of disciplinary meeting
letter is set out at the end of this
Guideline, but please note it must be
carefully adapted to your Club’s particular
Constitution and requirements.

The member can ask the witnesses
any questions, relevant to the
matter.

Once the Club’s witnesses are
completed, the member can call any
witness in his/her defence, including
him or herself.

The member and his/her witnesses
can be asked questions by the
Chairman and the other Board
members.

Once all the evidence is completed,
the member should be asked if he or
she wishes to make any summary
statement.

The member should be requested to
leave the room and the Board
decides whether the charge is
proved.

The member should be invited back
and advised of the decision. If the
member is not guilty, the matter is at
an end.
The Chairman of the meeting hearing the
disciplinary proceedings should have
primary control of the disciplinary
proceedings. Other members of the Board
should only participate as necessary.
If the member does not appear at the
meeting after being given due notice of
the meeting, then any written
representation by the member which
addresses any of the following points is to
be taken as the response of the member
on that point. In the absence of the
member and any written representation,
the Chairman should still be mindful of
the procedure set out below.
If the member does appear at the
meeting, the member should be invited
into the room and then advised that the
following procedure will be followed in
the conduct of the disciplinary
proceeding:

The charge should be read to the
member.

The member should be asked how
he/she pleads.
If the member pleads guilty or if the
Board finds the member guilty of the
charge, the Chairman should advise the
member of the range of penalties allowed
under the Club’s Constitution and then
invite the member to make any comment
about which penalty should be imposed.
The member should then be requested to
leave the room and the Board then
decides the penalty. The member should
then be requested to return to the room
to be advised of the penalty. The member
should then be informed that the Board’s
decision will be confirmed as soon as
possible in writing to him/her (usually, the
Constitution will not require the Board to
give reasons for its decision).
| 68
6. RECORD KEEPING
A record of proceedings should be kept by
Club management in written form and
should include:

the date and time of the hearing;

the name and address of the
member who is the subject of the
hearing;

the names of Directors attending the
hearing;

a copy of the notice of charge;

minutes of the proceedings;

the decision reached and actions to
follow; and

a copy of the notice of the Board’s
decision.
7. SUGGESTED DISCIPLINARY
MEETING LETTER
The text on the following page is a
suggested form of letter to a member to
notify him/her of a disciplinary meeting. It
is intended to provide an example of the
level of detail which is required to
adequately advise the member of the
charge which he/she has to answer.
Before using this suggested form it is
important Clubs confirm the wording of
the letter is consistent with their
Constitution.
| 69
[On Club Letterhead]
Insert Date
PRIVATE AND CONFIDENTIAL
TO BE OPENED BY ADDRESSEE ONLY
Member’s name
Membership number
Address
Dear Mr/Ms/Mrs
NOTICE OF CHARGE
The following charge pursuant to Rule [x] of the Constitution of [insert Club name] Club
Limited (“the Club”) has been made against you:
it is alleged that you have engaged in conduct prejudicial to the interests of the Club; and/or
[INSERT AS APPROPRIATE]
it is alleged that you have engaged in conduct which is unbecoming of a member; and/or
[INSERT AS APPROPRIATE]
it is alleged that you have engaged in conduct which may render you unfit for membership
of the Club. [INSERT AS APPROPRIATE]
PARTICULARS
[Insert time, date and place details of the alleged offence including details as to who
witnessed the alleged offence and what it is alleged the member did.]
HEARING
On [insert date] at [insert time] in the Boardroom of the Club at [insert address], the Board
of Directors of the Club will meet to hear the charge and consider and if thought fit, pass any
resolution pursuant to Rule [x] of the Constitution of the Club as is considered by the Board
in the circumstances to be appropriate.
Pursuant to Rule [x] of the Constitution, you are required to be present at the meeting of the
Board at the time, date and place stated above.
At that meeting and before any resolution is moved you will have the opportunity of giving
in writing or orally any explanation or defence you may think fit in relation to this matter, to
call any witnesses in your defence and, if found guilty, before any resolution imposing any
penalty is passed you will be given the opportunity of addressing the Board on that penalty.
You may also submit to the Board any representations in writing regarding the charge in
advance of the meeting for the Board’s consideration.
Pursuant to Rule [x] of the Constitution, the Board has the power at the meeting to
reprimand you, suspend you from all privileges of membership of the Club for such period as
it thinks fit, expel you from membership of the Club or accept your resignation as a member
of the Club.
| 70
If you do not attend the meeting of the Board at the date, time and place stated in
paragraph 2 of this Notice, the Board may hear and determine the charges in your absence
and pass such resolution as it considers fit pursuant to Rule [x] of the Constitution.
Pursuant to Rule [x] of the Constitution, the Board has determined that you be immediately
suspended from all privileges of membership until the meeting of the Board referred to in
paragraph 2 of this Notice.
For your information, a copy of Rule [x] of the Constitution is enclosed.
[Signed]
Chief Executive Officer / Secretary Manager
| 71
1. PURPOSE

This Guideline assists Clubs in
conducting fair and open elections for
Boards of Directors. The Guideline must
be read in conjunction with the Club’s
Constitution.
A returning officer should not be a
candidate for any position being
contested in an election. A returning
officer cannot be seen to have any
affiliation with or show support to any
candidate or group of candidates. The
integrity of an election relies on the
ability and complete impartiality of the
returning officer. The returning officer
may or may not be a member of the
Club but should not be an employee of
the Club.42
2. CLUB CONSTITUTIONS AND BYLAWS
Elections are to be conducted according
to the Club’s Constitution and any Bylaws passed by the Board. If the Club’s
Constitution or By-laws do not provide
clear rules for conducting elections then
they should be updated and amended
to do so.
The role of a returning officer is to
conduct, in its entirety, the election for
the Board of Directors. Broadly
speaking, this role includes:

preparing the
nominations;

ensuring the notice is published;

receiving nominations;

acceptance of nominations and
declaring formal acceptance when
nominations close;

conducting the draw for positions
on the ballot paper;

drafting and printing ballot papers;

distributing ballot papers to eligible
members;

counting ballot papers; and
4. POWERS OF THE RETURNING
OFFICER
In conducting elections, the power and
role of the returning officer includes:
3. RETURNING OFFICER
notice
providing the result to the Club.
inviting

42
The returning officer fulfils a critical
function in ensuring a fair and
transparent election process for all
Clubs with more than 10,000 members will be
required to have the election of the Club’s
governing body conducted by a person or body
approved by the Director General. Clubs with
10,000 members or less have the option of
using an external person/body to conduct their
elections. It is recommended however that
they also use an external person/body.
Pursuant to Section 30(1)(a2) of the Registered
Clubs Act 1976, the Director General approves
the following persons/bodies to conduct
elections for Clubs with more than 10,000
members:
a. Employee or a person authorised or
approved by the Australian Electoral
Commission to be a returning officer;
b. Secretary, or Top Executive of a Club
within 50km of the Club and with more than
10,000 members;
c. Solicitor not currently acting for the Club; or
d. Accountant not currently acting for the
Club.
| 72
candidates in accordance with the
Club’s Constitution and By-Laws.

The decisions of the returning
officer should be accepted by the
Board and management of the Club
unless there is some clearly stated
reason to the contrary.

The returning officer should be
consulted on any discrepancy or
concern raised about the election
process.

If the returning officer raises a
concern about the manner or
conduct of the election or
candidates then these concerns
should be addressed by the Club.
5. ELECTION TIMETABLE
to members and return of ballot
papers; and

if the Club’s Constitution does not
permit the above guidelines to be
given effect, the Club should
consider reviewing its Constitution.
6. NOTICE OF ELECTION
RETURNING OFFICER
BY
Subject to the requirements of the
Club’s Constitution, an election notice
should be:

prominently displayed on the Club
noticeboards;

posted or e-mailed to all members;
and

advertised in a newspaper.
Subject to the Club’s Constitution and
By-laws for Club elections:
The notice should:

there should be a period of at least
two weeks but generally not more
than four weeks between the date
nominations are invited and the
close of nominations;

state that an election is to be held
and identify and provide contact
details for the returning officer;

the close of roll of members
entitled to vote should be no later
than the time set for the close of
nominations;
set the time and date for the close
of the roll of eligible members;

invite nominations, listing
positions to be contested;

clearly set out any requirements or
qualifications required under the
Constitution to be eligible to
contest any position;

advise where nomination forms
may be obtained;

specify
the
place
where
nominations are to be lodged;

fix the time and date for the close
of nominations; and

advise the day(s) and time(s) for
voting; or if a postal ballot, when
ballot papers will be posted and
when and where they are to be
returned; or if voting is at the AGM,




there should be a period of at least
two weeks between the close of
nominations
and
the
commencement of the voting
period for the AGM if voting is at
the AGM;
the days and times for voting
should be convenient to members
and should ensure that as far as
practicable, members are given
adequate opportunity to vote;
where ballot papers are posted to
members, there should be a period
of about 21 days between posting
the
| 73
the time, date and location of the
meeting.
7. NOMINATIONS
Before nomination
Clubs should make available to all
candidates
the
Future
Director’s
information kit that can be obtained from
ClubsNSW.
General
A nomination form should require
completion of the following information:

the full name, residential address,
contact details (home or business
phone/fax/email/ mobile phone
number) and membership number
of the candidate;

the position or positions for which
the candidate is standing;

the candidate’s written consent to
the nomination;

the full names, residential address,
membership
number
and
signatures of the required number
of eligible nominators; and

the place and time by which to
lodge nominations.

Statutory declaration on the form
provided by ClubsNSW (every
director standing for election or reelection must fill in a statutory
declaration)
If the returning officer is of the opinion
that there is an anomaly in a
nomination, such that it may require the
returning officer to reject the
nomination, the returning officer
should, as soon as practicable after
receiving the nomination, contact the
candidate and advise that the anomaly
should be rectified before the time for
close of nominations.
Unless
there
are
exceptional
circumstances the returning officer
cannot accept a nomination after the
time and date fixed for the close of
nominations.
Withdrawal of a Nomination
A candidate who has been nominated in
an election should be permitted to
withdraw that nomination, but only in
writing addressed to the returning
officer, provided it is received by the
returning officer before the close of
nominations.
Certification of a Nomination
For the purpose of enabling the
returning officer to form an opinion as
to the eligibility of a candidate and the
candidate’s nominators/proposers, the
returning officer should require the CEO
of the Club to furnish him/her with such
information regarding the candidate
and nominators/proposers as the
returning officer may specify. The CEO
of the Club should provide the required
information, in writing, as soon as
practicable after the request is made
and certainly before nominations close.
8. UNCONTESTED ELECTIONS
If, when nominations close, the number
of persons who have been duly
nominated as candidates for a particular
position does not exceed the number to
be elected to a position, each of those
persons is elected. Any positions
remaining unfilled should be filled
according to the Club’s Constitution.
| 74
9. CONTESTED ELECTIONS
If, by the close of nominations, the
number of persons who have been
nominated as candidates for a position
or positions exceeds the number of
persons to be elected, then a ballot
must be held for the position(s).
Candidate Profiles
The following applies if candidates are
permitted to provide information
(profiles) about themselves, which
would be made available to members:

Profiles should be submitted to the
returning officer, in an approved
format, at any time before the
close of nominations;

The returning officer should
compile and present the profiles in
a manner agreed with the Club
prior to the commencement of the
election;

If it is considered that any
information
provided
by
a
candidate is not appropriate; is
false or misleading; or exceeds a
stipulated word limit, the returning
officer may, take action to omit or
rectify the information, or reduce
the length of the information, as
the case requires;

Where voting is conducted at the
Club, the profiles should be
displayed throughout the voting
period, and for a postal ballot,
posted with the ballot paper.
Alternatively, they could be
included in the Club’s journal or
annual report; and

The profiles should be displayed in
the same order as the candidates
on the ballot paper. Where
photographs are included, all
photographs should be the same
size and ideally, current Directors
should not be shown wearing
Director’s apparel.
10. DELIVERY OF ROLL OF ELIGIBLE
VOTERS TO THE RETURNING
OFFICER
As soon as practicable after the close of
nominations, the returning officer
should receive a roll of eligible voting
members certified to that effect by the
CEO.
The roll should show, in alphabetical
order and consecutively numbered, the
full surname, given names, residential
address and membership number of
each member entitled to vote. If the
election is to be conducted by post,
corresponding address details supplied
as labels or on disk (or other means as
agreed between the Club and the
returning officer) should be supplied to
the returning officer at the same time.
Candidates are entitled to a copy of the
roll in order to pursue their candidature.
11. ORDER OF CANDIDATES ON
BALLOT-PAPERS
A returning officer should not conduct a
draw for positions on the ballot paper
without at least one independent
witness present. Ideally, candidates or
their representatives should be present.
The time and place for the conduct of
the draw should have been adequately
advertised.
Where a Club’s Constitution contains
any particular requirements as to the
manner or order candidates are to
appear on the ballot paper, the
returning officer must comply with
those requirements.
| 75
Otherwise, the returning officer, as soon
as possible after the close of
nominations, should conduct a ballot to
determine the order of candidates on
the ballot-paper. Where there are
separate positions, a separate draw is
conducted for each position.
Such a ballot could be conducted in the
following manner, which is consistent
with Parliamentary elections:


on identical slips of paper show
each candidate’s name as it will
appear on the ballot paper;
enclose the slips in separate,
identical containers, seal each
container and deposit all the
containers in a ballot-box and
fasten the ballot box;

rotate the ballot-box and allow any
other person present to do the
same;

unfasten the ballot-box and take
out a container. Announce and
record the name of the candidate
whose name is on the slip taken
from the first container. Repeat the
process until all containers have
been withdrawn and all names
recorded; and

sign the record and ask someone
else to sign as well.
position should be shown separately
and in order of seniority.
The returning officer is responsible for
printing the ballot-papers. This could be
done “in house” or by a commercial
printer, however, security is paramount.
A certificate should be issued and
signed by the returning officer,
acknowledging the exact number of
ballot papers printed. They should be
securely stored at all times.
The ballot papers are:

to show the position(s) being
contested;

to show the names of the
candidates contesting each position
(in the order prescribed by the
ballot or some other way if so
prescribed
by
the
Club’s
Constitution);

to distinguish names from each
other where a similarity in the
names of two or more candidates is
likely to cause confusion;

to give the candidates preferred
use of name where possible. For
example, candidate may prefer Bill
for William or Jim for James but
nicknames are not acceptable;

to provide clear and concise
direction as to the manner in which
the vote is to be recorded, having
regard to the system of voting
required by the Constitution; and

where the ballot is conducted by
post to provide instructions on how
the ballot paper is to be returned to
the returning officer and the date
for the close of the ballot.
All candidates should be formally
advised of the result of the draw.
12. FORM OF BALLOT-PAPERS
Separate ballot papers can be prepared
for each position, or several positions
can be included on a single ballot paper.
The returning officer should make this
decision in consultation with the CEO.
Where there are multiple positions on
one ballot paper (e.g. President, Vice
President, Treasurer, Committee) each
| 76
13. ADVICE TO MEMBERS AND
CANDIDATES
The returning officer should ensure that
a list of the candidates and the office for
which they have nominated, along with
other information such as the days and
hours of voting, availability of postal
voting, name and contact phone
number of the returning officer are
displayed on the Club’s noticeboards.
This information may also appear in the
Club’s journal.
The returning officer should write to all
candidates following the close of
nominations providing them with a copy
of the ballot paper draw, the
arrangements for voting, the method of
voting, information regarding the
appointment of scrutineers, the day and
time of counting the votes and any
other information as the returning
officer determines.
14. VOTING
Voting options are as follows (note: in
accordance with Section 30(1)(d) of the
Registered Clubs Act 1976 there is no
proxy voting).
Attendance Voting at the Club
Voting takes place at the Club during
the days and times as advertised. A
member wishing to vote should produce
his/her membership card and have
his/her name marked off the roll.
The member should record acceptance
of his/her ballot paper by listing their
membership number and signature on
an attendance sheet.
This then
becomes a daily and continuing record
of ballot papers issued.
If the Club’s membership card does not
contain photo identification the
member should be asked to produce
another form of photo identification. If
photo identification is not available then
another form/s of identification should
be produced to satisfy the returning
officer/polling official of the identity of
the person.
The returning officer/polling official
should initial the ballot paper before
handing it to the member who, having
voted, should place the completed
ballot-paper in a locked ballot box.
Ballot papers should not be numbered
as this compromises the confidentiality
of the vote.
If a member makes a mistake when
voting, a replacement ballot paper can
be given in exchange for the spoilt one.
Members should not be allowed to take
their ballot paper from the voting area
and then return to cast their vote as this
may cause the validity of the ballot
paper to be in jeopardy.
Candidates should not assist persons as
to how to complete their ballot papers.
Members who require assistance should
obtain assistance from the returning
officer or polling official.
At some Clubs voting may take place at
more than one location. As members
may attend both premises, there arises
the opportunity for a person to vote at
both locations. While procedural checks
would identify any instance of this after
the ballot had closed, it would be too
late to guarantee the integrity and
correctness of the result.
Some possible alternatives are:

amend the hours of voting so that
voting is not concurrent at two
locations. This would allow a single
| 77
roll to be used. Sufficient time
would have to be allowed to open
voting at the 2nd location, using the
same roll; and

require members to place their
ballot papers in an envelope, and
complete a declaration on the
envelope before placing it in the
ballot box. It would then be
possible to isolate and reject any
envelopes should someone have
voted more than once.
This situation should of course, be
addressed and resolved prior to the
start of the election process and
candidates advised of procedures.
Postal Voting
The returning officer should, as soon as
practical after the printing of the ballot
papers, send by post to each person
included on the roll:

a ballot paper (or papers) initialled
by the returning officer, containing
the directions for voting and for
return of the ballot paper;

an envelope addressed to the
returning officer with spaces on the
back for the member to print their
name and address, and a space for
the
member’s
signature.
If
considered
necessary,
the
member’s membership number
may also be required. (An inner
“ballot paper only” envelope may
also be provided if considered
necessary); and

if applicable, candidate profiles.
The envelope containing the completed
ballot paper is to be received by the
returning officer prior to the close of the
ballot. It can be posted or delivered.
On receipt of an envelope, the returning
officer must, if satisfied that a person of
that name is included on the roll for the
election, accept the ballot paper in the
envelope without opening the envelope
and make a mark on the roll to indicate
that the person has voted.
If the returning officer is not satisfied
that a person of that name is included
on the roll, or if the person’s name and
signature does not appear on the
envelope, it should be rejected and the
envelope not opened.
Envelopes received by the returning
officer after the date for the close of the
ballot should be rejected and remain
unopened.
Combination of Attendance Voting and
Postal Voting
The same procedures outlined above for
attendance voting are to be followed.
However, where a member is unable to
attend the Club during the hours of
voting he/she may apply in writing to
the returning officer for a postal ballot
paper.
The returning officer should mark the
roll to identify that a postal vote has
been issued to the member. The same
procedures for postal voting as outlined
above are followed.
Voting at the AGM
Some members (and employees) may
be entitled to attend the AGM and vote
on general matters, but are not entitled
to vote in the election of the Board of
Directors.
The CEO, when preparing a list of
members entitled to attend the AGM
should prepare a separate roll of
| 78
members entitled to vote in the election
of the Board of Directors.
The returning officer should initial the
ballot paper before handing it to the
member who, having voted, should
place the completed ballot paper in the
locked ballot box.
Clubs with Multiple Premises
Members of Clubs with multiple
premises
(including
amalgamated
Clubs), regardless of their location, must
be given a reasonable opportunity to
participate in the election process at the
premises they usually patronise. If it is
impracticable for this to occur because
of the small number of persons
participating in voting at a particular set
of premises then a postal vote should be
offered.
15. INCENTIVES TO VOTE
Incentives to vote before or during an
election period are not desirable. For
example, free drinks or free or
discounted meal vouchers. It is,
however, customary to provide some
reasonable free refreshments and/or
food after the conclusion of an Annual
General Meeting.
17. ‘HOW TO VOTE’ MATERIAL
While candidates are normally entitled
to post out ‘how to vote’ material to
members in order to pursue their
candidature, the distribution of “how to
vote” material on Club premises is
subject to any restrictions specified in
the
Club’s
Constitution/By-laws.
Generally it is recommended that Clubs
do not allow the distribution of “how to
vote” material on Club premises.
Enforcement of any restrictions on the
distribution of “how to vote” material
on the Club’s premises should be the
responsibility of Club management.
Clubs should also ensure that neither
incumbent Board members nor other
particular candidates in Board elections
are given any special treatment or
promotion in Club publications or on the
Club premises over other candidates.
Examples include particular candidates
being promoted in a President’s
message in the Annual Report or
promotional material being authorised
by the Board for particular candidates
on the Club’s premises.
How to vote material should not contain
any defamatory statements and should
clearly state on the material who
authorised the material.
16. SECURITY OF THE BALLOT
18. SCRUTINY AND COUNTING
The returning officer must at all times
ensure the security of the returned
postal vote envelopes and the ballot
papers completed at an attendance
ballot. The unused ballot papers should
be securely stored by the returning
officer, preferably in a separate ballot
box.
At the close of the ballot (postal ballot)
the returning officer is to open each
envelope which has been determined as
acceptable, extract the ballot paper
(without unfolding it) and place it in a
ballot box. In an attendance ballot, the
ballot papers should remain in the
locked ballot box up to the close of the
ballot. The returning officer will then
remove the ballot papers from the
| 79
ballot box, examine each ballot paper
for formality and conduct the count.
20. PERSONS PRESENT AT
SCRUTINY AND COUNT
The ballot is to be counted in order of
seniority. Any candidate elected to a
higher position will be excluded from
subsequent ballots.
The returning officer, polling officials,
and scrutineers appointed on behalf of
candidates are entitled to be present
during the scrutiny of envelopes, issuing
of ballot papers, and the counting of the
ballot papers. A scrutineer is a person
appointed by the candidate to observe
the process on his/her behalf. A
scrutineer is therefore not entitled to
assist the returning officer in the
counting of ballot papers.
In the event that two or more
candidates have an equal number of
votes and one has to be excluded or one
has to be elected, unless the
Constitution/By-laws provide a means
of resolution of a tie other than by “a
draw from a hat” the returning officer
will conduct a draw.
19. INFORMAL BALLOT PAPERS
A ballot paper is generally considered to
be informal if it:

A candidate may not act as a scrutineer
in any of the ballots being contested.
Subject to the requirements of the
Club’s Constitution a scrutineer need
not be a member of the Club. The Club
solicitor or auditor for example could
act as a scrutineer.
has not been completed in
accordance with the directions on
it; or
21. RESULT OF ELECTION

has not been initialled by the
returning officer or the polling
official; or

contains a mark or writing which, in
the returning officer’s opinion,
would enable the elector to be
identified, for example, roll
number, name.
Once the result of the election has been
determined, the returning officer should
advise the CEO of the Club of the result
in writing, including:
Before starting the count, the returning
officer should be perfectly clear on the
criteria for informality and should
ensure that scrutineers observing the
count on behalf of candidates have a
clear understanding. The returning
officer’s
decision
on
the
formality/informality of a ballot paper
should be regarded as final.

(in the case of a postal ballot) the
number of envelopes rejected and
the reason for the rejection;

the number of votes received by
each candidate;

the number of informal votes; and

the total number of votes cast.
Once the result has been announced, a
copy of the result should be placed on
the Club noticeboard.
22. RETENTION OF MATERIALS
All materials (roll of electors, ballot
papers, etc) are to be kept by the
| 80
returning officer for one month prior to
being destroyed. This is in case there is
any challenge by a candidate concerning
the result of the election. After the
election result is declared at the Annual
General Meeting a resolution should be
sought from the members to destroy
the ballot papers after one month.
| 81

Club Code of Practice and Best Practice Guidelines

Transcription

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