2015 Annual Report - Royal Melbourne Yacht Squadron

ROYAL
MELBOURNE
YACHT
SQUADRON
2015
ANNUAL REPORT
(A PUBLIC COMPANY LIMITED BY GUARANTEE)
ABN 64 006 124 867
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
www.rmys.com.au
ROYAL
MELBOURNE
YACHT
SQUADRON
COMMODORE’S REPORT
PHOTOGRAPHY BY CHRIS MAZZOTTA
Contents
3
VICE COMMODORE’S REPORT
4
REAR COMMODORE’S REPORT
5
CLUB CAPTAIN’S REPORT
6
TREASURER’S REPORT
DIRECTORS’ REPORT
8
10
AUDITOR’S INDEPENDENCE DECLARATION
13
STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
13
STATEMENT OF FINANCIAL POSITION
STATEMENT OF CHANGES IN EQUITY
STATEMENT OF CASH FLOWS
15
16
NOTES TO THE FINANCIAL STATEMENTS
DIRECTORS’ DECLARATION
INDEPENDENT AUDIT REPORT
14
17
26
27
ANNUAL REPORT 2015
1
Royal Melbourne Yacht
Squadron 2014-2015
FLAG OFFICERS
Commodore
Linda Goldsmith (AprilJuly 2014)
Commodore
Janet Dean (July
2014-March 2015)
Vice Commodore
Janet Dean (April-July
2014)
Vice Commodore Marcus
Coppens (July 2014-March
2015)
Rear Commodore
Ian Law (April-July 2014)
Rear Commodore
John Rea (July 2014-March
2015)
Club Captain
Matt Setton (April-July
2014)
Club Captain
Thomas Ely (July
2014-March 2015)
GENERAL
COMMITTEE
Honorary Treasurer Greg
Marino
David Connolly
Ian Lodewyckx
James Lynch
Rowena Jackson
Charles Meredith
John Rea
Amanda Wakeham
RESIGNED DURING
2014-2015
Linda Goldsmith
Ian Law
Matt Setton
Amanda Wakeham
2014-2015
SUBCOMMITTEES
FINANCE COMMITTEE
Chair Greg Marino
Linda Goldsmith
Janet Dean
Ian Lodewyckx
Peter Davison
Peter Newstead
Cherry Birch
2
FACILITIES COMMITTEE
Chair Marcus Coppens
Janet Dean
John Rea
Thomas Ely
David Connolly
Ian Lodewyckx
Charles Meredith
MEMBERSHIP
COMMITTEE
Chair John Rea
Ian Law
Jody Lukeman
Charles Meredith
Anthony Callanan
Ignatius Zanetidis
Ian Lodewyckx
SAILING COMMITTEE
Chair Thomas Ely
Jürgen Pfeiffer
Michael Culhane
Brian Burggraaf
Jeff Whiteside
David Croke
Jody Lukeman
Ian Lindsay
Andy Doolan
Alistair Hart
Handicapper Jack Setton
AWKR
Jody Lukeman
Celia Dymond
David Sudano
Dee Mason
Holly Savage
Janet Dean
Kathleen Mackian
Kristen Buckland
Louise Kavanagh
Rebecca Badenoch
Tony Lukeman
Amanda Wakeham
Virginie Lhermet
Kirby Roper
Mary O’Brien
Brooke Farkas
Dennice Allen
SAFETY, HEALTH
& ENVIRONMENT
COMMITTEE
Chair Neil Finlayson
David Connolly
Thomas Ely
David Croke
Leigh Brennan-Smith
ROYAL MELBOURNE YACHT SQUADRON
Julian Gibson
(food&desire)
EVENTS & ENGAGEMENT
COMMITTEE
Chair Rowena Jackson
Amanda Wakeham
Jennifer BussanichHudson
Lisa Paterson
Rob Graham
Janina Goethel
Jake Morley
Todd Pedler
Pat Milwright
Louise Kelly
Julian Gibson
(food&desire)
RACE OFFICERS
Andrew Gluth
Ian Guyett
Alistair Hart
Tony Lukeman
Amanda Wakeham
Louise Kavanagh
Ross Flood
David Croke
Louise Hutton
2014 CLUB
MEMBER OF THE
YEAR
Peter Davison
2014-2015
CENTENARY
TROPHY WINNER
Ellipse Jack Setton &
Albert Kaminsky
JUNIOR CLUB
CAPTAIN
Maxwell Murraylee
ADMINISTRATION
General Manager
Rod Austin
Assistant Manager
Louise Hutton
Operations Manager
Damien Ryan
Membership Liaison
Officer Jan Hurst
Admin & Accounts
Jan Fielding
Sailing Coordinator
Allicia Rae
Yard and Marina Assistant
Joel Carnes
Yard and Marina Assistant
Kuki Qura
Accountant Vicki Wright
Events Coordinator Robyn
Coombs
Venue Manager Julian
Gibson (food&desire)
Royal Melbourne Sail
Training Academy Leigh
Brennan-Smith
HONORARY LIFE
MEMBERS
George Wilson
John (Bert) Ferris
Murray McCutcheon
Ken Simpson
50 YEAR MEMBERS
Leo Perini – 1941
John H Ferris – 1944
William Toy – 1946
Eric Broadbent – 1946
Douglas Jenkin – 1948
Kim Chipman – 1951
Edward Montfort – 1952
William Maude – 1962
Stephen Hawes – 1962
Russell Nathan – 1964
MEMBERSHIP
As at 31 March 2015: 969
As at 31 March 2014: 928
RMYS IS PROUDLY
SPONSORED BY:
MAJOR SPONSORS
Helly Hansen
Club Marine
IBG Insurance Brokers
PREFERRED SUPPLIER
AdventureWare
SPONSORS
Banks Group
Rundles Chartered
Accountants
Morse Air Systems
UNi-PRO
Troubleshooters Available
Regis
Horizon Sailmakers
Sundance Marine
Mountain Goat Beer
Kiss Print Services
food&desire
Commodore’s Report
After the excitement of the 2014 year
with the opening of the marina, we have
been in a period of consolidation with the
first full year of the marina operation and
turning our attention to the future needs
of the Squadron.
We completed the Strategic Plan addressing the next 3 years and thinking
beyond that to determine the next stages of development and renewal. The
clean-up of the seabed and relaying of the moorings following the demolition of
the wooden marina, will be completed shortly; an under-utilised portion of the
yard has been recovered for RMSTA and dinghy use.
Activity around the Squadron has continued to increase and with the announcement that the ISAF
Sailing World Cup will be moving to St Kilda in December, there will be a lot more activity. The
Victorian School Teams Racing event continues to be a highlight of the March calendar having
now expanded to three days due to the level of interest. This year’s event saw Albert Park College
compete for the first time following training programs with the Royal Melbourne Sail Training
Academy.
The Royal Melbourne Sail Training Academy continues its training programmes in the enlarged safe
harbour area with local schools, juniors and adults. The Sail Training Academy continues to be a
source of new members for the Squadron.
RMYS always has a busy racing and cruising calendar. This year in a first, the annual away weekend
of racing combined with the cruising fleet at Safety Beach.
The Australian Women’s Keelboat Regatta recently celebrated its 25th year, with 25 boat entries and
over 160 individual women competitors ranging in age from 15 to 60 + years. This year, for the first
time, we had an international team from New Zealand.
The financial management of the Squadron remains strong, with a small deficit for 2014/2015 and
a projected surplus for 2015/2016. I thank Treasurer Greg Marino and the finance sub-committee
(Peter Davison, Ian Lodewyckx and Peter Newstead) for their advice and counsel.
The Squadron would not function without the office staff and volunteers. I thank the General
Manager Rod Austin, Assistant Manager Louise Hutton and Operations Manager Damien Ryan and
their office team - Jan Fielding, Jan Hurst, Allicia Rae, Joel Carnes, Kuki Qura, Vicki Wright and
Robyn Coombs for their dedication and commitment to the success and future of the Squadron.
I also take this opportunity to thank all the volunteers who contribute in so many ways to the
Squadron.
In closing, I thank each of the Squadron directors for their support and work; Treasurer Greg
Marino, Vice Commodore Marcus Coppens, Rear Commodore John Rea, Club Captain Tom Ely,
David Connolly, Rowena Jackson, Jim Lynch, Ian Lodewyckx and Charles Meredith.
Janet Dean
Commodore
ANNUAL REPORT 2015
3
Vice Commodore’s
Report
The Squadron is now 15 months into
enjoying the delights and comforts of the
new marina. One result that has emerged,
is an increase in the use by members of
the Squadron’s services.
RMYS is experiencing a spike in membership numbers, an achievement
not shared with other yacht clubs around the bay. A factor that contributed
towards this influx of members, is the closure of the wooden marina. This
resulted in the departure of around 40 older, smaller and infrequently
used boats that were replaced with larger, newer boats and more active
crews.
However, as yet, there has been no significant increase in the overall
number of Club registered boats despite that the new marina can accommodate seventy more.
This is expected to change once the yacht broker’s office becomes operational later this year.
It will be encouraged to attract short term berthing at RMYS to lift marina revenue and create
more competition on the water.
An immediate impact on the clubhouse is increased demands on both the Olympic Bar and
Harbour Room for pre and post race briefings, socialising and food and beverages. This demand,
plus the hosting of the much publicised ISAF championships in December this year, has
prompted your committee to prioritise plans to refurbish the Olympic Bar and related clubhouse
improvements. Interior design, with a vintage theme, is in the final stage of planning.
Your committee is continuing to work on the Master Plan, as it is directed to do in the approved
RMYS Strategic Plan. Once the club’s many short, medium and long term options are prioritised,
the plan will be ratified by the members. The plan is addressing the future direction of boat
slipping, dry-dock facilities, boat lockers, dinghy sailing, St Kilda harbour management, stage
2 marina and limited public use of club facilities. Wherever possible all efforts will be made to
ensure that such developments will add to our bottom line.
Discussions with City of Port Phillip have commenced to renew the clubhouse and yard Crown
lease which expires on 9 February 2016. RMYS seeks to enter into a new 21 year lease over
the existing Crown land under terms similar to the existing lease. All indications are that there
should be no impediment to securing the new lease.
Marcus L Coppens
Vice Commodore
4
ROYAL MELBOURNE YACHT SQUADRON
Rear Commodore’s
Report
Walking into RMYS you can be reminded
of the duck on a lake analogy, serene on
the surface and lots of frantic paddling
going on underneath.
I have been the Rear Commodore for 12 months now and I am still amazed
at the work put in by a great crew of volunteers and our staff to keep the
sailing, social and business activities of the club on course.
I must add my personal thanks to the Membership Committee; Anthony
Callanan, Ignatius Zanetidis, Jan Hurst, Lou Hutton and of course Ian
Lodewyckx and Charles Meredith who pull double watches serving on
Membership and General Committee.
Membership categories are being streamlined and with agreement from the Membership
various new and exciting options will be offered taking the club into the future.
There are several sails being set to enhance Senior membership at RMYS; Sailing and Social
members are not being left behind either.
As with most sporting and social clubs in Victoria, RMYS is facing a challenging future with
a slowing economy and a contraction of spending income. Maintaining and growing club
membership will continue to be a challenge but we have a strong base on which to build.
The removal of the old marina is the most obvious indication that the club is continuing to move
forward from the great work done by Past Commodore Linda Goldsmith and her committee.
We are now looking to the onshore facility, improving the functionality of the yard, more room for
off the beach sailing and the improving the overall appearance of the club.
“Fair Winds and a following sea”
John Rea
Rear Commodore
ANNUAL REPORT 2015
5
Club Captain’s Report
I am pleased to present the
RMYS Club Captain’s report for
season 2014-15.
I have been involved in the Sailing Committee for over 10
years and have helped several Captains over that period.
I thought I had a good grasp of the responsibilities when
I nominated for this position but I must say I have been
surprised by the scope of the position.
Firstly I must thank my Sailing Committee for the support
they have given me throughout the year and I do hope they
can stay on for the next year which has some particularly
exciting challenges. Thanks go to Jody, Allicia, Louise,
Alistair, Andrew, Brian, David, Ian, Jeffrey, Jürgen, and
Michael. I must also thank Rob Murraylee and Jan Talacko for continuing their good work with the
Juniors, both operating beautifully with minimal input from Sailing Committee. I will also like to
thank Lawrence Dean for stepping so keenly into Rob’s shoes with the Cadet group.
It has been another eventful year in which RMYS has successfully delivered and participated in
sailing events both in Victoria and interstate, including:
-T
he Dennis Connor International Yacht Club Challenge, where RMYS Team B finished 9th;
RMYS Team A placed 19th and were also voted the “Friendliest Team”.
-T
he Stonehaven Cup, which 8 Junior members attended and gained valuable experience to
take to next year’s event which will be held at RMYS. In other junior events, Linus Talacko took
1st in the under 12’s at the Optimist Victorian Championships and another 1st in the Victorian
Open Team Racing Championship at Albert Park. Charlie Langdon also took a 1st in the Lidgett
Trophy Novice Blue event at Davey’s Bay Yacht Club.
-T
he Club Marine Series, where Addiction put in another solid performance in Div 1, whilst
Salamander III and Mrs Overnewton performed well in Div 2 and Johnny B Goode excelled in
Div 3.
-T
he Geelong Festival of Sails, where Sea Eagle, Johnny B Goode, Kaberet and Take Five all
performed well.
-T
he William Angliss Institute Victorian Schools Team Racing Championships, hosted by RMYS
for the third time in March. All who attended agreed we have the very best venue for this event,
with over 200 students involved.
-T
he Big Bay Challenge, which was run and won in fine weather and style by Remedy who were
a cut above the competition this year.
- The Association Cup, where our teams performed well to put us in 4th place overall.
-T
he 25th AWKR, which has been run and won by the time this has gone to print. We are
justifiably proud of this standout women’s sailing event at RMYS.
RMYS was well represented in offshore racing, with a number of boats participating in the various
Hobart events and other ocean races. In the Sydney to Hobart race we were represented by
Primitive Cool, Ninety Seven and Tina of Melbourne. In the Melbourne to Hobart Westcoaster,
special mention goes to Addiction taking 1st PHS, 2nd Line Honours and 2nd AMS.
6
ROYAL MELBOURNE YACHT SQUADRON
PHOTOGRAPHY BY BRUNO COCOZZA / SAILSTATION
Cruises are still increasing in popularity with many thanks to Pat Milwright for his continued efforts
in co-ordinating the cruising events.
The year ahead sees a new challenge with the exciting addition of the ISAF Sailing World Cup being
held at St. Kilda from 7th to 13th December. We will need all our regular volunteers and more to
help the support this YV event. It will be a spectacular advertisement for our sport to the city of
Melbourne and to the world. I encourage you all to consider a few days’ volunteering at this event.
RMYS is home to the 2016 Stonehaven Cup in January, and I am sure our Cadet fleet will perform
well in front of a home crowd. We will also be holding the Victorian Trailable Championships in
2016.
None of these events could occur without the involvement and support of our dedicated staff, Race
Officers and volunteers. I thank you on behalf of all members for your contributions.
I wish you all safe and happy sailing and successful racing in the year ahead.
Thomas F. Ely
Club Captain
ANNUAL REPORT 2015
7
Treasurer’s Report
31 March 2015
This Treasurer’s Report focuses on the financial affairs of the Squadron for
the year ended 31 March 2015. As expected, it was a difficult trading period
in the first full year of operation of the new marina. This was primarily due to
occupancy levels of the short term marina leases and other marina-related
costs. The cashflow was also impacted by the prepaid long term leases, but we
managed to generate $36,105 in additional cash for the year as shown in the
Statement of Cash Flows.
OVERVIEW
The Statement of Profit or Loss and Other Comprehensive Income shows the
total revenue and a summary of the major expenses. The Revenue of $2,290,631
compares favourably with $1,907,839 for the previous year (minus the $553,000
gift from SSH that year). However, for the first time in many years we recorded
a loss which amounted to $86,521, although this was much lower than the
budgeted loss of $154,718. I am also pleased to report that the Squadron’s performance satisfied
the bank’s financial covenants.
OPERATING AREAS
The financial performance of the Squadron is monitored by operating area. The following table
illustrates the net surplus/(deficit) for each operating area, and also shows a comparison between
budget 2015, actual 2014 and actual 2015.
OPERATING AREAS
BUDGET 2015
ACTUAL 2014
ACTUAL 2015
($71,151)
($62,240)
($49,445)
($356,775)
($217,048)
($311,923)
$16,935
$15,621
$20,314
$164,963
$153,633
$139,095
$98,704
$460,276
$128,296
($7,394)
($19,096)
($12,858)
($154,718)
$331,146
($86,521)
Sailing
Net Deficit
Administration
Net Deficit
Training Operations
Net Surplus
Clubhouse Facilities
Net Surplus
Yard & Marina
Net Surplus
Other
Net Deficit
TOTAL SURPLUS/(DEFICIT)
SAILING
The sailing expenditure budget is set at approximately double the revenue budget. The result
was better than budgeted mainly due to higher sponsorship income and lower expenditure than
budgeted. Thanks go to our sponsors and to Tom Ely and the sailing committee for the management
of their budget.
8
ROYAL MELBOURNE YACHT SQUADRON
ADMINISTRATION
Administration includes membership fees and expenditure not attributed to the other operating areas.
Total administration revenue was $577,658, which was about $40,000 higher than 2014 and $14,000 higher
than budgeted. Revenue is mostly from membership fees which were on budget and higher than the
previous year. Membership numbers increased from 928 at the start of the year to 969 by year end, but
were as low as 880 in July 2014. It’s also pleasing to note that the increase in voting members over the
year was 15, many of them with boats in the marina. The main administration expenses are labour-related
costs not directly attributed to any other operating areas. It is interesting to note that based on an average
membership numbers (920 for last year) the administration cost per member is about $958 per annum.
TRAINING OPERATIONS
This area relates to the Royal Melbourne Sail Training Academy (RMSTA). Their income was above budget
and expenditure below budget, resulting in much better than budget performance for the year. The
Squadron supported the RMSTA in funding the purchase of six Pacer dinghies in November to expand their
operations. We are also grateful to Leigh for introducing new members to the Squadron.
CLUBHOUSE FACILITIES
The contribution from our clubhouse facilities is primarily due to food&desire. The results were down
on budget and the previous year due to their lower revenue from Harbour Room functions. It is however
pleasing to note that their revenue from Wednesday night trading was the best ever. The Facilities
Committee is working with food&desire to improve this area of operations.
YARD & MARINA
This area includes the yard, moorings and marina; the 2014 comparative figure relates mostly to the old
marina. The surplus was well down on the previous year. The revenue includes non-cash long term pen
rental of $592,268, and the expenditure includes the depreciation and amortisation expense of the marina
and rock wall of $667,101. The marina performance will improve as occupancy levels increase. We are
also offering antifouling services which will improve the performance of the yard, currently a loss maker
for the Squadron.
BALANCE SHEET
During the year we spent approximately $370,000 on capital works. Post the marina project we are in a
much better position than expected, with a lower bank debt than projected and enough cash in the bank
to repay the debt if required. Currently the bank loan is $400,000 with a redraw facility of $1,600,000. The
Statement of Position shows a strong Net Assets position of $1,921,830 underpinned by our new marina.
BUDGET 2015-16
We have developed a sound budgeting system, well scrutinised by the Finance and General Committees,
and I am pleased that the budget is projecting a surplus of $60,192 with a positive cashflow of $236,394.
The capital expenditure budget is focused on much needed renovations to the clubhouse and on sailingrelated expenditure. The Squadron’s involvement with ISAF has certainly influenced the priority of our
capital expenditure wish list.
ACKNOWLEDGEMENTS
As Treasurer I chair the monthly Finance Sub-committee consisting of Peter Davison, Ian Lodewyckx,
Peter Newstead, and Janet Dean. The General Manager Rod Austin also attends and prepares the
minutes. I again thank the committee members and Rod for their contribution and responsible financial
administration of the Squadron. We are also thankful for the good work of Louise Hutton, Jan Fielding, Jan
Hurst and Vicki Wright. I also acknowledge the Assurance team at Banks Group for once again donating
their time to prepare the statutory Financial Statements.
Greg Marino
Treasurer
ANNUAL REPORT 2015
9
Directors’ Report
31 March 2015
The directors present their report on Royal Melbourne Yacht Squadron (the Squadron) for the financial year
ended 31 March 2015.
1. GENERAL INFORMATION
INFORMATION ON DIRECTORS
The names of each person who has been a director during the year and to the date of this report are:
10
Janet Hilary Dean
Commodore & Chair
Qualifications B Comm, CA
Experience IT Consultant-Finance Systems
Gregory Marino Honorary Treasurer
Qualifications FCA, FCPA
Experience Business services, tax advice and audit
Charles William Meredith General Committee
Qualifications BSc, PhD, FEIANZ
Experience Environmental scientist
John Rea General Committee
Qualifications Post Grad Diploma Business
Experience Induction bending and testing of steel pipelines
David Leonard Connolly
General Committee
Qualifications Practicing chemical engineer
Experience Design and construction projects in Australian process industries
Rowena Alexandra Jackson General Committee
Qualifications B.Bus. Marketing, MBA, HR and Entrepreneurship
Experience Events and fundraising
Marcus Coppens Vice Commodore
Experience Licensed Real Estate Agent
Appointed 19 July 2014
Thomas Ely Club Captain
Qualifications Bachelor of Engineering
Experience Mechanical & Computer Engineering
Appointed 19 July 2014
ROYAL MELBOURNE YACHT SQUADRON
James Michael Lynch General Committee
Qualifications MBBS, Diploma of Obstetrics & Gynaecology
Experience Clinical Lecturer, Tutor, Examiner & Full Time General Practitioner
Appointed 19 July 2014
Ian Lodewyckx General Committee
Qualifications Bachelor of Engineering
Experience IT Industry
Appointed 19 July 2014
Linda Joan Goldsmith
Resigned 19 July 2014
Ian Law
Resigned 19 July 2014
Matthew Setton
Resigned 19 July 2014
Amanda Joanne Wakeham
Resigned 19 July 2014
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
COMPANY SECRETARY
Rod Austin held the position of secretary at the end of the financial year.
PRINCIPAL ACTIVITIES
The principal activities of Royal Melbourne Yacht Squadron during the financial year were the promotion and
encouragement of recreational and competitive sailing.
No significant changes in the nature of the Squadron's activities occurred during the financial year.
SHORT TERM AND LONG TERM OBJECTIVES
The Squadron's objectives are to promote and encourage recreational and competitive sailing.
STRATEGY FOR ACHIEVING THE OBJECTIVES
The overall strategy for achieving these objectives of the Squadron is set out in the Business Plan and Budget
which are regularly reviewed throughout the year. Decisions based on major expenditure should coincide with
the Business Plan and Budget of the Squadron.
HOW PRINCIPAL ACTIVITIES ASSISTED IN ACHIEVING THE OBJECTIVES
Through the course of the year these activities assisted in achieving the objectives of the Squadron by
maintaining and increasing membership.
PERFORMANCE MEASURES
The Squadron measures the achievement of its objectives monthly in a variety of ways including regular
comparisons with similar organisations.
ANNUAL REPORT 2015
11
Directors’ Report
31 March 2015
2. OPERATING RESULTS AND REVIEW OF OPERATIONS FOR THE YEAR
The deficit of the Squadron amounted to $ (86,521) (2014: surplus of $884,146). The 2014
surplus includes a gift of $553,000 received from St Kilda Safe Harbour Ltd.
MEETINGS OF DIRECTORS
During the financial year, 12 meetings of directors (including committees of directors) were held.
Attendances by each director during the year were as follows:
DIRECTORS’ MEETINGS
Number eligible to attend
Number attended
Janet Hilary Dean 12 12
Gregory Marino 12 11
Charles William Meredith 12 9
John Rea 12 11
David Leonard Connolly 12 12
Rowena Alexandra Jackson 12 8
Marcus Coppens 9
9
Thomas Ely 9
9
James Michael Lynch 9
6
Ian Lodewyckx 9
8
Linda Joan Goldsmith 3
3
Ian Law 3
3
Matthew Setton 3
3
Amanda Joanne Wakeham 3
2
AUDITOR’S INDEPENDENCE DECLARATION
The lead auditor’s independence declaration in accordance with section 307C of the Corporations Act
2001, for the year ended 31 March 2015 has been received and can be found on page 13 of this report.
Signed in accordance with a resolution of the Board of Directors:
Director:
12
Director:
Janet Hilary Dean
Dated 17 June 2015
ROYAL MELBOURNE YACHT SQUADRON
Marcus Coppens
Dated 17 June 2015
Auditor’s Independence
Declaration
Under Section 307C of the Corporations Act 2001 to
the Directors of Royal Melbourne Yacht Squadron
I declare that, to the best of my knowledge and belief, during the year ended 31 March 2015, there
have been:
(i) no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
(ii) no contraventions of any applicable code of professional conduct in relation to the audit.
Brian N Jones
Chartered Accountant
Registered Company Auditor number 9921
Ahead for Business Pty Ltd
Statement of Profit
or Loss and Other
Comprehensive Income
For the Year Ended 31 March 2015
2015
2014
NOTE
$
$
3
2,290,631
2,460,839
(24,103)
(59,312)
(812,490)
(173,336)
13,405
(24,000)
Employee expenses
(598,513)
(507,381)
Finance costs
(156,666)
(30,039)
Other operating expenses
(798,785)
(782,625)
(86,521)
884,146
Revenue
Direct costs and consumables
Depreciation and amortisation expense
Doubtful debts
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
ANNUAL REPORT 2015
13
Statement of
Financial Position
31 March 2015
NOTE
2015
2014
$
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents
4
1,389,160
1,353,055
Trade and other receivables
5
235,025
310,044
41,157
53,990
144,302
154,723
1,809,644
1,871,812
Inventories
Other assets
6
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Loan RMSTA
5
23,609
-
Property, plant and equipment
7
13,970,376
14,300,699
TOTAL NON-CURRENT ASSETS
13,993,985
14,300,699
TOTAL ASSETS
15,803,629
16,172,511
235,429
298,790
13,308
24,497
1,151,481
989,155
1,400,218
1,312,442
1,448,836
1,443,592
19,839
17,005
11,012,906
11,391,721
TOTAL NON-CURRENT LIABILITIES
12,481,581
12,852,318
TOTAL LIABILITIES
13,881,799
14,164,760
1,921,830
2,007,751
28,905
28,305
Retained earnings
1,892,925
1,979,446
TOTAL EQUITY
1,921,830
2,007,751
LIABILITIES
CURRENT LIABILITIES
Trade and other payables
8
Employee benefits
Other liabilities
9
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Borrowings
10
Employee benefits
Other liabilities
NET ASSETS
9
EQUITY
Reserves
14
ROYAL MELBOURNE YACHT SQUADRON
Statement of
Changes in Equity
For the Year Ended 31 March 2015
2015
BALANCE AT 1 APRIL 2014
Deficit attributable to members
Member contributions
BALANCE AT 31 MARCH 2015
Retained
Earnings
$
Trophy Trust
Reserve
$
Total
$
1,979,446
28,305
2,007,751
(86,521)
-
(86,521)
-
600
600
1,892,925
28,905
1,921,830
Retained
Surplus
$
Trophy Trust
Reserve
$
Total
$
1,095,300
28,305
1,123,605
884,146
-
884,146
1,979,446
28,305
2,007,751
2014
BALANCE AT 1 APRIL 2013
Surplus attributable to members
PHOTOGRAPHY BY LOUISE HUTTON
BALANCE AT 31 MARCH 2014
ANNUAL REPORT 2015
15
Statement of
Cash Flows
For the Year Ended 31 March 2015
NOTE
2015
2014
$
$
2,086,891
4,784,848
(1,441,884)
(2,091,894)
47,695
149,206
(156,666)
(30,039)
536,036
2,812,121
(482,166)
(11,207,406)
(23,609)
-
(505,775)
(11,207,406)
5,244
1,443,592
600
-
5,844
1,443,592
36,105
(6,951,693)
1,353,055
8,304,748
1,389,160
1,353,055
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment
Loans to related parties
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from borrowings
Member contributions
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents held
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of financial year
16
ROYAL MELBOURNE YACHT SQUADRON
4
Notes to the
Financial Statements
For the Year Ended 31 March 2015
1. BASIS OF PREPARATION
The directors have prepared the financial statements on the basis that the notfor-profit entity is a non-reporting entity because there are no users dependent on
general purpose financial statements. These financial statements are therefore a
special purpose set of financial statements that have been prepared in order to meet
the requirements of the Corporations Act 2001.
The financial statements have been prepared in accordance with recognition and
measurement criteria in the Australian Accounting Standards and the disclosure
requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement
of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and
Errors and AASB 1054 Australian Additional Disclosures.
The significant accounting policies disclosed below are those which the directors have
determined are appropriate to meet the needs of members. Such accounting policies
are consistent with the previous period unless otherwise stated.
The financial statements have been prepared on an accruals basis and are based on
historical costs unless otherwise stated in the notes.
Comparative Amounts
Comparatives are consistent with prior years, unless otherwise stated.
Where a change in comparatives has also affected the opening retained earnings
previously presented in a comparative period, an opening statement of financial
position at the earliest date of the comparative period has been presented.
Income Tax
No provision for income tax has been raised as the Squadron is exempt from income
tax under Div 50 of the Income Tax Assessment Act 1997.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a)
Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably,
it is probable that economic benefits associated with the transaction will flow to the
Squadron and specific criteria relating to the type of revenue as noted below, has
been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and
is presented net of returns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax (GST).
Interest revenue
Interest is recognised using the effective interest method.
ANNUAL REPORT 2015
17
Notes to the
Financial Statements
For the Year Ended 31 March 2015
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED
Rendering of services
Revenue in relation to rendering of services is recognised depending on whether the
outcome of the services can be estimated reliably. If the outcome can be estimated
reliably then the stage of completion of the services is used to determine the
appropriate level of revenue to be recognised in the period.
If the outcome cannot be reliably estimated then revenue is recognised to the extent
of expenses recognised that are recoverable.
Subscriptions
Revenue from the provision of membership subscriptions is recognised on a straight
line basis over the financial year.
Other income
Other income is recognised on an accruals basis when the Squadron is entitled to it.
b)
Goods and Services Tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and
services tax (GST), except where the amount of GST incurred is not recoverable from
the Australian Taxation Office (ATO).
Receivables and payables are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as part of
receivables or payables in the statement of financial position.
Cash flows in the statement of cash flows are included on a gross basis and the GST
component of cash flows arising from investing and financing activities which is
recoverable from, or payable to, the taxation authority is classified as operating cash
flows.
c)Inventories
Inventories are measured at the lower of cost and net realisable value. Cost of
inventory is determined using the first-in-first-out basis and is net of any rebates and
discounts received.
(d) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less,
where applicable, any accumulated depreciation and impairment of losses.
Where the cost model is used, the asset is carried at its cost less any accumulated
depreciation and any impairment losses. Costs include purchase price, other directly
attributable costs and the initial estimate of the costs of dismantling and restoring
the asset, where applicable.
Assets measured using the revaluation model are carried at fair value at the
revaluation date less any subsequent accumulated depreciation and impairment
losses. Revaluations are performed whenever there is a material movement in the
value of an asset under the revaluation model.
18
ROYAL MELBOURNE YACHT SQUADRON
Notes to the
Financial Statements
For the Year Ended 31 March 2015
Land and buildings
Land and buildings are measured using the cost model.
Plant and equipment
Plant and equipment are measured using the cost model, other than the Breakwater
which is measured using the revaluation model.
Depreciation
The depreciable amount of all property, plant and equipment, except for freehold land
is depreciated on a straight line method from the date that management determine
that the asset is available for use.
Assets held under a finance lease and leasehold improvements are depreciated over
the shorter of the term of the lease and the asset’s useful life.
(e) Cash and cash equivalents
Cash and cash equivalents comprises cash on hand, demand deposits and short-term
investments which are readily convertible to known amounts of cash and which are
subject to an insignificant risk of change in value.
Bank overdrafts also form part of cash equivalents for the purpose of the statement
of cash flows and are presented within current liabilities on the statement of financial
position.
(f)Provisions
Provisions are recognised when the Squadron has a legal or constructive obligation,
as a result of past events, for which it is probable that an outflow of economic benefits
will result and that outflow can be reliably measured.
Provisions are measured at the present value of management’s best estimate of
the outflow required to settle the obligation at the end of the reporting period. The
discount rate used is a pre tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. The increase in the provision
due to the unwinding of the discount is taken to finance costs in the statement of
profit or loss and other comprehensive income.
ANNUAL REPORT 2015
19
Notes to the
Financial Statements
For the Year Ended 31 March 2015
3. REVENUE AND OTHER INCOME
2015
2014
$
$
23,052
88,732
487,649
481,797
47,695
149,206
-
553,000
263,433
285,023
1,256,383
686,403
Racing
72,375
55,975
Shipyard
54,058
58,643
Administration income
85,986
102,060
2,290,631
2,460,839
Sales revenue:
Retail sales
Member subscriptions
Interest received
St Kilda Safe Harbour Ltd
Function income
Marina income
TOTAL REVENUE
Revenue for the year ending 31 March 2014 includes the sum of $553,000 as a gift from St
Kilda Safe Harbour Ltd.
This company was formed with capital pledged by members to fund the preliminary costs of
constructing the new marina over a number of years; on completion of the project, the asset
was handed over to the Squadron.
4. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Other cash and cash equivalents
2015
2014
$
$
26,819
202,794
1,362,341
1,150,261
1,389,160
1,353,055
RECONCILIATION OF CASH
Cash and Cash equivalents reported in the statement of cash flows are reconciled to the
equivalent items in the statement of financial position as follows:
2015
2014
$
$
Cash and cash equivalents
1,389,160
1,353,055
BALANCE AS PER STATEMENT OF CASH FLOWS
1,389,160
1,353,055
NOTE
20
ROYAL MELBOURNE YACHT SQUADRON
Notes to the
Financial Statements
PHOTOGRAPHY BY BRUNO COCOZZA / SAILSTATION
For the Year Ended 31 March 2015
5. TRADE AND OTHER RECEIVABLES
2015
2014
$
$
233,823
294,267
1,202
15,777
235,025
310,044
Loan RMSTA
23,609
-
TOTAL NON-CURRENT TRADE AND OTHER RECEIVABLES
23,609
-
2015
2014
$
$
Prepayments
77,406
77,748
Borrowing costs
66,896
76,975
144,302
154,723
CURRENT
Trade receivables
GST receivable
TOTAL CURRENT TRADE AND OTHER RECEIVABLES
NON-CURRENT
6. OTHER ASSETS
CURRENT
ANNUAL REPORT 2015
21
Notes to the
Financial Statements
For the Year Ended 31 March 2015
7. PROPERTY, PLANT AND EQUIPMENT
2015
2014
$
$
At cost
595,985
567,207
Accumulated depreciation
(29,497)
(2,293)
Total marina services
566,488
564,914
47,959
47,959
(31,312)
(28,981)
16,647
18,978
369,265
344,644
(289,999)
(274,352)
79,266
70,292
507,033
507,033
(507,033)
(483,633)
-
23,400
At cost
6,921,438
6,642,311
Accumulated depreciation
(346,984)
(26,853)
Total floating marina
6,574,454
6,615,458
39,965
39,964
(39,965)
(39,479)
-
485
At valuation
6,608,589
6,608,589
Accumulated depreciation
(341,285)
(26,717)
Total breakwater
6,267,304
6,581,872
Marina services
Members’ bar
At cost
Accumulated depreciation
Total members’ bar
Fixtures and fittings
At cost
Accumulated depreciation
Total fixtures and fittings
Timber marina
At cost
Accumulated depreciation
Total timber marina
Floating marina
Computer software
At cost
Accumulated depreciation
Total computer software
Breakwater
22
ROYAL MELBOURNE YACHT SQUADRON
Notes to the
Financial Statements
For the Year Ended 31 March 2015
7. PROPERTY, PLANT AND EQUIPMENT CONTINUED
2015
2014
$
$
Clubhouse
At cost
1,924,537
1,912,755
Accumulated depreciation
(1,715,432)
(1,695,129)
Total clubhouse
209,105
217,626
At cost
312,653
204,917
Accumulated depreciation
(208,541)
(182,729)
Total cradles and slipway
104,112
22,188
At cost
389,495
379,823
Accumulated depreciation
(272,809)
(219,485)
Total boats and marina equipment
116,686
160,338
At cost
50,624
30,174
Accumulated depreciation
(14,310)
(5,026)
Total rental moorings
36,314
25,148
TOTAL PLANT AND EQUIPMENT
13,970,376
14,300,699
Cradles and slipway
Boats and marina equipment
Rental moorings
8. TRADE AND OTHER PAYABLES
2015
2014
$
$
Trade payables
88,149
216,549
Other payables
147,280
82,241
235,429
298,790
CURRENT
ANNUAL REPORT 2015
23
Notes to the
Financial Statements
For the Year Ended 31 March 2015
9. OTHER LIABILITIES
2015
2014
$
$
1,151,481
989,155
11,012,906
11,391,721
2015
2014
$
$
248,836
243,592
Bank loans
1,200,000
1,200,000
Total non-current borrowings
1,448,836
1,443,592
CURRENT
Prepaid revenue
NON-CURRENT
Prepaid revenue
10. BORROWINGS
NON-CURRENT
Unsecured liabilities:
Member loans
Secured liabilities:
11. REMUNERATION OF AUDITORS
Remuneration of the auditor of the Squadron, Brian N Jones, for auditing the financial report
was $9,759 (2014: $9,622).
12. CONTINGENCIES
In the opinion of the Directors, the Squadron did not have any contingencies at 31 March
2015 (31 March 2014: None).
24
ROYAL MELBOURNE YACHT SQUADRON
Notes to the
Financial Statements
For the Year Ended 31 March 2015
13 CASH FLOW INFORMATION
RECONCILIATION OF RESULT FOR THE YEAR TO CASHFLOWS FROM OPERATING ACTIVITIES
Reconciliation of net income to net cash provided by operating activities:
2015
2014
$
$
(86,521)
884,146
812,490
173,336
decrease in trade and other receivables
75,019
2,026,267
decrease/ (increase) in other assets
10,421
(46,619)
decrease/ (increase) in inventories
12,831
(36,448)
(216,488)
446,948
(63,361)
(643,357)
(8,355)
7,848
536,036
2,812,121
(Deficit)/ surplus for the year
Cash flows excluded from profit attributable to operating
activities
Non-cash flows in profit:
depreciation and amortisation
Changes in assets and liabilities:
(decrease)/ increase in income in advance (other liabilities)
decrease in trade and other payables
(decrease)/ increase in employee benefits
Cashflow from operations
14 COMPANY DETAILS
The registered office and the principal place of business of the Squadron is:
Royal Melbourne Yacht Squadron
Club House
Pier Road
ST KILDA VIC 3182
ANNUAL REPORT 2015
25
Directors’ Declaration
The directors have determined that the Squadron is not a reporting entity and that these special
purpose financial statements should be prepared in accordance with the accounting policies
described in Note 2 of the financial statements.
The directors of the Squadron declare that:
1.
The financial statements and notes for the year ended 31 March 2015 are in accordance with
the Corporations Act 2001 and:
(a) comply with Australian Accounting Standards as stated in Note 2; and
(b)give a true and fair view of the financial position as at 31 March 2015 and of the
performance for the year ended on that date in accordance with the accounting policy
described in Note 2 of the financial statements.
2.
In the directors’ opinion, there are reasonable grounds to believe that the Squadron will be
able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Director:
Janet Hilary Dean
Marcus Coppens
PHOTOGRAPHY BY BRUNO COCOZZA / SAILSTATION
Director:
26
ROYAL MELBOURNE YACHT SQUADRON
Independent Audit
Report to the members of Royal Melbourne Yacht
Squadron
REPORT ON THE FINANCIAL REPORT
We have audited the accompanying financial report, being a special purpose financial report of
Royal Melbourne Yacht Squadron, which comprises the statement of financial position as at 31
March 2015, the statement of profit or loss and other comprehensive income, statement of changes
in equity and statement of cash flows for the year then ended, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration.
DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL REPORT
The directors of the Squadron are responsible for the preparation of the financial report that
gives a true and fair view and have determined that the basis of preparation described in Note 1
to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and
is appropriate to meet the needs of the members. The directors’ responsibility also includes such
internal control as the directors determine is necessary to enable the preparation of a financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud
or error.
AUDITOR’S RESPONSIBILITY
Our responsibility is to express an opinion on the financial report based on our audit. We conducted
our audit in accordance with Australian Auditing Standards. Those standards require that we comply
with relevant ethical requirements relating to audit engagements and plan and perform the audit to
obtain reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial report. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the financial report, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant
to the Squadron’s preparation of the financial report that gives a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Squadron’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made
by the directors, as well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
ANNUAL REPORT 2015
27
Independent Audit
Report to the members of Royal Melbourne Yacht
Squadron
INDEPENDENCE
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of Royal Melbourne Yacht Squadron, would be in the same
terms if given to the directors as at the time of this auditor’s report.
OPINION
In our opinion the financial report of Royal Melbourne Yacht Squadron is in accordance with the
Corporations Act 2001,including:
(a) giving a true and fair view of the Squadron’s financial position as at 31 March 2015 and of
its performance for the year ended on that date; and
(b) complying with Australian Accounting Standards to the extent described in Note 2, and
the Corporations Regulations 2001.
Basis of Accounting
Without modifying our opinion, we draw attention to Note 1 to the financial report which describes
the basis of accounting.
The financial report is prepared for the purpose of fulfilling the directors’ financial reporting
responsibilities under the Corporations Act 2001. As a result, the financial report may not be
suitable for another purpose.
Brian N Jones
Chartered Accountant
Registered Company Auditor number 9921
Ahead for Business Pty Ltd
Melbourne, Australia
28
ROYAL MELBOURNE YACHT SQUADRON
PHOTOGRAPHY BY BRUNO COCOZZA / SAILSTATION
ROYAL
MELBOURNE
YACHT
SQUADRON
PO BOX 2001, ST KILDA WEST, VICTORIA 3182
TELEPHONE: (03) 9534 0227
FACSIMILE: (03) 9534 4478
EMAIL: [email protected]
COVER PHOTOGRAPHY BY ANDREW ASHTON
www.rmys.com.au