Annual Report 2007 - 2008

Canberra Southern Cross Club – community-minded leisure experience

Canberra Southern Cross Club

ACN 008 488 855

CSCC Annual Report 07–082

President’s ReportBob Lloyd

I am pleased to report a better than budget surplus of $1.63 million.

As anticipated in last year’s annual report this years annual trading surplus was smaller than that achieved in 2006-2007. This downturn was a direct result of the increase in award wages and the increase in the ACT Government gaming tax.

The ACT Club Industry in relation to gaming has suffered a downturn. The telling statistic is how gaming revenue performance across the ACT has compared to the same period 18 months ago. On this comparison the outcome is down 6.5%.

However, the Club is recovering well from the smoking ban and has managed to ride the waves of a slowing economy caused by interest rate hikes and increases in fuel and other costs especially in the second half of the year. Therefore, the results achieved for this year are to be considered very good, all indications point to the fact that the Club has fared much better than the industry average.

Woden, Tuggeranong and the Yacht Clubs have all made a profitable contribution to the Group result. Yamba again showed a yearly operating loss and is facing a very difficult trading environment.

At the time of writing this report I can announce the result of our successful endeavours in achieving one of our strategic goals. A presence on the North side of Canberra.

We welcome the members of the Wests group of Clubs who will now trade under the banner of “Southern Cross Club – Wests”. The Board recognised the important role that Wests Rugby play within the rugby union fraternity and we are

pleased to continue our sporting support for this club and other sporting groups.

This acquisition will increase our membership base by 20,000 in the near future. I would like to remind all members that your one membership card entitles you to entry at all the Southern Cross venues.

Finance – Chairman Adrian Caddy

Finishing the year with very healthy cash reserves has put us in a good position to launch into the planned developments and provide the services mentioned respectively in the planning and members services sections of this report.

The finance committee has continued to ensure the health of the Club by rigorous monitoring of performance against industry benchmarks, the conduct of an internal audit program and a comprehensive risk management plan.

Planning – Chairman Paul Rollings

Strategic Objectives: In April the committee set the strategic agenda for the coming year. Topics included review of directions, club industry environment, management operations, members perspectives, focus groups, short and long term priorities, primary issues especially on the topic of social responsibility and our continuing support for gambling counselling though our commitment to the ClubCare program.

Woden: Project Coordination has been appointed Project Manager for the fit out of the “Event Centre” at the budgeted cost of $4.5 million dollars. Work has commenced with a completion date expected at the end of the year. The Centre will provide four (4) function rooms and Auditorium capable of seating up to 1000 for concert performances.

CSCC Annual Report 07–08 3

Yacht Club: GE Shaw and Associates has been appointed Project Manager for major redevelopment work including larger function rooms, verandas and new entrance with lift. Detailed planning is continuing and should be ready for final approval in Feb 2009.

Other noticeable works completed this year at the Yacht Club have been a new fenced area for yachts and boats and the extended car parking area granted under license by the government to the year 2032.

Yamba: Negotiations are continuing with the owner of Yamba premises regarding the lease over the Yamba Club, Bowling Greens and the Stadium but this continues to be very difficult financially. Negotiations are also continuing to secure an interest in the Health and Fitness Centre business.

Tuggeranong: Planning is complete for the refurbishment of the kitchen and dining areas. These minor works will commence soon.

Members Services & Community Support – Chairman Jack Rice

Members will already see the results of a busy committee program.

Woden

• ArevampedHenry’sandchildren’sgamesarea

• Sportsbar

• ArevampedloungeareaincludinglargescreenTVs dedicated to music in the evenings near the smoking patio

• Newcarpettofoyerandstairway

• Refittodownstairspoolandbilliardsarea

• Thenew“SouthernCrossEventsCentre”toopen in November.

Wests

• NewlayoutplanfortheWestsclub

All Venues

• Anemphasisonenvironmentalissueswithour“Green campaign”

Future Plans

• RefurbishmentoftheYachtClub

• RefitofthediningareaatTuggeranong

• Plansforextendedgymservice

• Furtherimprovementstothediningareas at Woden

As mentioned in the CEO’s report despite the decline in our surplus we are pleased to provide an increase in this year’s Community Contributions, a total of $1.4million.

The Board has also agreed to special new partnerships with Karinya House for Mothers and Babies, Marymead Child and Family Centre and the Australian Catholic University which will guarantee each organisation a funding grant of at least $30,000 per year for 3 years.

The Board would like to thank all our members for their continuing support and we hope you enjoy the changes made and those yet to be implemented, and once again welcome to the our new members on the Northside.

Finally, I would like to take this opportunity to thank our hard working and dedicated CEO – Greg Mitchell, GM – Carol Sawyer, Company Secretary – Rod Frazer and all the staff for a job well done. My thanks also go to the loyal and dedicated members of the Board for their guidance throughout the year.

Bob Lloyd President


Message from the Chief MinisterJon Stanhope MLA

Congratulations to the Canberra Southern Cross Club on its ongoing and invaluable support to local community organisations.

Over the past year, almost 100 not-for-profit community organisations have benefited from more than $1.3 million in grants, donations and in-kind assistance from the Club.

Once again, the Club has remained true to its mission by exceeding the level of contribution required by legislation. This level of support is clear testimony to the strength of the Club’s ethos and values and to the compassion and generosity of the Club management, staff and membership.

While many worthy organisations and projects will benefit from the support provided through the Annual Community Grants, Community Partnerships and Support for Sports programs, the community as a whole gains too from the forging

of strong partnerships and from the development of our social capital.

I was recently pleased to release The Canberra Plan – Towards Our Second Century which highlights the ACT Government’s commitment to providing opportunities for all Canberrans to fully participate in community life. Through its mission and partnerships, the Canberra Southern Cross Club helps build a stronger and more supportive community.

I thank the Club for its continued generosity and wish management, staff and members an even more successful year ahead.

Jon Stanhope MLA Chief Minister


Firstly, I would like to welcome our new members that have come across from the acquisition of the Wests group of Clubs.

The acquisition was completed recently and now Southern Cross Club members have access to three venues on the North Side at Macquarie, Kaleen and Turner.

With respect to the 2007/2008 financial year the Canberra Southern Cross Club has performed reasonably well compared to the ACT Club Industry as a whole. In summary, the difference between this year and last year’s results was some $700,000 additional gaming machine tax which is a result of the increased tax rate effective for the entire financial year.

Whilst the forecast for the Club Industry is for nil growth the Canberra Southern Cross Club is still in a strong financial position.

This strong financial position has enabled the acquisition of the Wests group of Clubs, and the completion of the Events Centre at Woden due to open in December this year. In addition the Club is also continuing with the design process of the redevelopment of the Yacht Club.

During the financial year the Club provided nearly $1.4million in support of the community of Canberra through Community Contributions, again this was 50% above the Government required contribution amount.

With the commitment from the Board to continue to support those organisations previously supported by Wests, the above amount will certainly be exceeded in the financial year 2008-09.

The Canberra Southern Cross Club, as always, participated in the ClubsACT Awards for Excellence. The Club once again received a number

of awards including:

• MembersServicesAward(7outofthelast 8 years)

• ResponsibleGaming&GamingFacilityAward

• ClubFunctionsAward(under200)–SouthernCross Yacht Club

• ChefsonShowBronze–SouthernCross Yacht Club

Commendation was received for:

• ClubDiningAward:PeppercressRestaurant,Tuggeranong

The Club was also awarded the Restaurant &CateringACT/SouthernRegionAwardsforExcellence for 2008, for the Southern Cross Restaurant&CocktailBar,Woden.OurTuggeranongPeppercress Restaurant was also a finalist in this category.

Over the next twelve months it is anticipated that you will see the continued upgrade of the ground floor at Woden including the Bar, Bistro and toilets. As well as the ground floor at Tuggeranong.

The new Clubs on the North Side will be upgraded as required to the high standard of the Canberra Southern Cross Club.

I would like to thank the Board of Directors, Carol Sawyer General Manager and Rod Frazer Company Secretary for their ongoing support and commitment to the success of the Canberra Southern Cross Club. In addition I would like to thank the Venue Managers and all staff for their significant contribution to the ongoing success of the Canberra Southern Cross Club for without the contribution from the 450 staff the Club would not be able to maintain such high quality service and facilities.

Chief Executive Officer’s ReportGreg Mitchell


Health and Fitness CentreRichard Peil

Back in early 2007 we took a gamble by sending two key staff to the US to work at one of the World’s largest and most respected Health Clubs. The Club,GainesvilleHealth&FitnessinFlorida,hasover 22,000 active members, employs hundreds of staff, and has won many National and International Fitness Industry and Business Awards. While this was an expensive exercise, the two staff Members we sent, Rhys and Lia, came back with a wealth of knowledge and experience that we immediately began to infiltrate into the everyday running of the Southern Cross Health Club.

As a direct result of this visit, the staff decided we needed an audacious goal to strive towards! What they collectively came up with was simple, but I wondered at the time whether it was achievable (knowing the amount of money being spent on new Centres around the country). The goal was to become the best Health Club in Australia in the eyes of our Members and Industry peers, by 2010. Well, as many of you reading this will already know, we achieved just that, “Best Health &FitnessFacility2008”attheannualFitness

Australia Awards, putting to rest any doubts I had regarding the goal being too audacious.

We have many people to thank for helping us achieve this milestone. Firstly the Board of the CSCC and the CEO Greg Mitchell for their continued support and encouragement. Secondly theManagement&staffoftheHealthClubwhoare simply outstanding at what they do day in day out. Finally the Members, who’s continued support means we have unheard of “member retention” in a facility of nearly 6000 Members.

This Award is recognition of the hard work of many individuals (too many to list), but more importantly it has served as a motivational tool to ensure we continue to provide an even better service and facility to the Members of the Health Club! Once again, thank you and congratulations to everyone involved in the Health Club for the outstanding achievements over the past 12 months.

Yours in Health,

Richard Peil Managing Director


The directors of Canberra Southern Cross Club Limited submit herewith the annual financial report for the financial year ended 30 June 2008. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

The names and particulars of the directors of the company during or since the end of the financial year are:

Name Special Responsibilities Years Service Occupation

R. W. Lloyd President 12 Company Director

J. J. Rice B Econ. Senior Vice President 27 Business Manager

P. L. Rollings Vice President 17 Retired

A. F. Caddy P.S.M., B Comm. Vice President 34 Retired

D. N. Grimmond OAM FREIA Director 7 Real Estate Agent

M. B. Laughlin B Arts Director 15 Public Servant

J .J. Lewis Director 5 Company Manager

K. Marshall Director 5 Public Servant

J. A. O’Loughlin AFSAE Director 32 Executive Director

S. C. Plummer Director 9 Manager

C. Behrens Director 2 Senior Executive Lawyer

COMPANY SECRETARYRod Frazer has 12 years service with Canberra Southern Cross Club Limited and 14 years as a director, of which 3 were as President.

PRINCIPAL ACTIVITIESThe consolidated entity’s activity in the course of the financial year was the operation of licensed club facilities.

During the financial year there was no significant change in the nature of that activity.

DIVIDENDSIn accordance with the constitution, the company is a company limited by guarantee to the extent of $2.00 per member, and accordingly no shares or debentures have been issued and no dividends have been recommended or paid since the start of the financial year.

Director’s Report


REVIEW OF OPERATIONSOperations comprised the running of licensed club facilities and the provision of member services.

CHANGES IN STATE OF AFFAIRSDuring the financial year there was no significant change in the state of affairs of the consolidated entity other than that referred to in the financial statements or notes thereto.

SUBSEQUENT EVENTSOn 1 July 2008 the company paid a deposit of $1,000,000 to secure the acquisition of the Western Districts Rugby Union Club (‘Wests’) from the Receivers and Managers, McGrathNicol. On 2 July 2008 the company agreed to the terms of sale. Following the agreement members of both clubs voted in an official ballot to authorise the transfer of the gaming machine licences held at each of the Wests three premises. As at 2 September 2008 the acquisition price was still being finalised with an estimated purchase price of $9,012,000.

FUTURE DEVELOPMENTSDisclosure of information regarding likely developments in the operations of the consolidated entity in future financial years and the expected results of those operations is likely to result in unreasonable prejudice to the consolidated entity. Accordingly, this information has not been disclosed in this report.

INDEMNIFICATION OF OFFICERS AND AUDITORSDuring the financial year, the company paid a premium in respect of a contract insuring the directors of the company (as named on page 7), the company secretary, and all executive officers of the company and of any related body corporate against a liability incurred as such a director, secretary or executive officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

The consolidated entity has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the company or of any related body corporate against a liability incurred as such an officer or auditor.

DISCUSSION AND ANALYSISFor a discussion and analysis on the concise financial report refer to pages 7 to 24 in the annual report.


DIRECTOR’S MEETINGSThe following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member).

Board of Directors Meetings

Directors Held Attended

C.Behrens 13 11

A. F. Caddy 13 13

D. N. Grimmond 13 9

M. B. Laughlin 13 11

J. J. Lewis 13 12

R. W. Lloyd 13 13

K. Marshall 13 10

J. A. O’Loughlin 13 9

S. C. Plummer 13 10

P. L. Rollings 13 12

J. J. Rice 13 10

Director’s Report (continued)


Financial Management Committee

Member Services Committee

Planning and Development Committee

Directors Held Attended Held Attended Held Attended

C. Behrens – – 12 11 12 9

A. F. Caddy 12 12 – – – –

D. N. Grimmond – – 12 7 12 8

M. B. Laughlin – – 12 9 12 11

J. J. Lewis 12 12 12 9 – –

R. W. Lloyd – – – – – –

K. Marshall 12 9 – – 12 10

J. A. O’Loughlin 12 10 – – 12 11

S. C. Plummer 12 11 12 8 – –

P. L. Rollings – – – – 12 11

J. J. Rice – – 12 10 – –

-: Director not required to attend Committee Meeting

In all cases of absences, directors were absent on club business, on leave or absent due to work commitments. In all instances leave of absence was sought and approved.

The auditor’s independence declaration is included in page 11 of the financial report.





The directors declare that:

(a) in the directors’ opinion, the attached financial statements and notes thereto comply with Accounting Standard AASB 1039 ‘Concise Financial Reports’; and

(b) the attached financial statements and notes thereto have been derived from the full financial report of the company.

Director’s Declaration


Consolidated

Note 2008 2007

$ $

Revenue 3 38,318,690 36,406,438

Cost of sales 3 (9,863,397) (9,195,685)

Gross Profit 28,455,293 27,210,753

Other income 3 146,005 256,108

Administration expenses (16,707,923) (15,362,101)

Finance costs 3 (421,276) (423,128)

Marketing expenses (1,218,956) (868,547)

Occupancy expenses (6,347,155) (6,326,532)

Operating lease expenses 3 (566,250) (765,267)

Show expenses (717,408) (606,998)

Other expenses (992,491) (770,632)

Profit before income tax expense 1,629,839 2,343,656

Income tax expense – –

Profit for the period 1,629,839 2,343,656

Profit attributable to members of the parent entity 1,629,839 2,343,656

Notes to the financial statements are included on pages 19 – 24.

Consolidated Income StatementFor the financial year ended 30 June 2008


Consolidated Balance SheetAs at 30 June 2008

Consolidated

Note 2008 2007

$ $

Current assets

Cash and cash equivalents 10,146,074 8,465,778

Trade and other receivables 553,658 389,570

Other financial assets 393,052 377,296

Inventories 385,583 408,139

Total current assets 11,478,367 9,640,783

Non-current assets

Other financial assets 35,000 86,017

Property, plant and equipment 39,161,181 40,881,971

Total non-current assets 39,196,181 40,967,988

Total assets 50,674,548 50,608,771

Current liabilities

Trade and other payables 1,928,171 2,417,905

Borrowings 1,103,279 1,063,437

Provisions 4 581,678 554,558

Other 402,927 401,214

Total current liabilities 4,016,055 4,437,114


Consolidated

Note 2008 2007

$ $

Non-current liabilities

Borrowings 4,213,465 5,356,467

Provisions 4 185,213 185,214

Total non-current liabilities 4,398,678 5,541,681

Total liabilities 8,414,733 9,978,795

Net assets 42,259,815 40,629,976

Equity

Retained earnings 42,259,815 40,629,976

Total Equity 42,259,815 40,629,976


Consolidated Balance Sheet (continued)As at 30 June 2008

Consolidated Statement of Recognised Income and ExpenseFor the financial year ended 30 June 2008

Consolidated

2008 2007

$ $

Profit for the period 1,629,839 2,343,656

Total recognised income and expense for the period 1,629,839 2,343,656



Consolidated Cash Flow StatementFor the financial year ended 30 June 2008

Consolidated

2008 2007

$ $

Cash flows from operating activities

Receipts from customers 37,589,331 39,595,803

Payments to suppliers and employees (32,166,564) (32,617,490)

Interest and other costs of finance paid (421,276) (423,128)

Net cash provided by operating activities 5,001,491 6,555,185

Cash flows from investing activities

Interest received 554,082 309,537

Loan repayments received 60,238 –

Payments for property, plant and equipment (3,098,595) (3,630,922)

Proceeds from the sale of property, plant and equipment 273,070 280,517

Net cash used in investing activities (2,211,205) (3,040,868)

Cash flows from financing activities

Repayment of borrowings (1,103,160) (1,293,437)

Net cash used in financing activities (1,103,160) (1,293,437)

Net increase in cash and cash equivalents 1,687,126 2,220,880

Cash and cash equivalents at the beginning of the financial year

8,602,380 6,381,500

Cash and cash equivalents at the end of the financial year

10,289,506 8,602,380



NOTE 1 – BASIS OF PREPARATIONThe concise financial report has been prepared in accordance with the Corporations Act 2001 and Accounting Standard AASB 1039 ‘Concise Financial Reports’. The concise financial report, including the financial statements and specific disclosures included in the concise financial report, has been derived from the full financial report of Canberra Southern Cross Limited.

All amounts are presented in Australian dollars

A full description of the accounting policies adopted by the consolidated entity is provided in the 2008 financial statements which form part of the full financial report.

NOTE 2 – ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDSIn the current year, the Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current annual reporting period. Details of the impact of the adoption of these new accounting standards are set out in the individual accounting policy notes set out below. The Group has also adopted the following Standards as listed below which only impacted on the Group’s financial statements with respect to disclosure:

• AASB101‘PresentationofFinancialStatements(revisedOctober2006)

• AASB7‘FinancialInstruments:Disclosures’

Notes to the Financial StatementsFor the financial year ended 30 June 2008


NOTE 3 – PROFIT/ (LOSS) FROM OPERATIONS

Consolidated

a) Revenue2008 2007

$ $

Revenue from operations consisted of the following items:

Gaming Revenue 20,304,757 19,660,487

Revenue from the sale of goods 14,319,508 13,354,913

Rental Revenue 1,245,652 1,116,737

Interest Revenue 554,082 309,537

Membership income 364,181 367,198

Bowling income 41,901 37,488

Members’ entertainment income 633,995 552,527

Other 854,614 1,007,551

Total 38,318,690 36,406,438

Consolidated

b) Profit before income tax 2008 2007

$ $

Profit before income tax has been arrived at after crediting/(charging) the following gains and losses from operations

Profit on sale of property, plant and equipment 146,005 256,108


NOTE 3 – PROFIT/ (LOSS) FROM OPERATIONS (CONTINUED)

Consolidated

2008 2007

$ $

Profit before income tax has been arrived at after (charging) the following expenses

Cost of Sales:

Gaming 4,478,845 3,923,230

Other sales 5,384,552 5,272,455

9,863,397 9,195,685

Finance costs

Interest – other entities 414,796 415,459

Interest – finance leases 6,480 7,669

421,276 423,128

Bad debts written off – other entities 12,900 8,566

Depreciation and amortisation of non-current assets:

Buildings 1,644,860 1,647,725

Property, plant and equipment 3,016,317 3,046,443

Leased assets 31,146 39,187

4,692,323 4,733,355

Operating lease rental expenses:

Minimum lease payments 566,250 765,267

Employee benefits expense:

Post employment benefits:

Defined contribution plans 823,146 742,848

Termination benefits 174,116 137,190

Other employee benefits 10,262,412 9,240,615

11,259,674 10,120,653


Consolidated

2008

$

2007

$

The aggregate employee entitlement liability recognised and included in the financial statements is as follows:

Provisions for employee benefit

Current 581,678 554,558

Non-current 185,213 185,214

766,891 739,772

NOTE 5 – REMUNERATION OF AUDITORS

Audit of the parent entity

Audit of the financial report 50,000 48,000

Other non-audit services – 24,150

50,000 72,150

The auditor of Canberra Southern Cross Club Limited is Deloitte Touche Tohmatsu.

NOTE 6 – KEY MANAGEMENT PERSONNEL COMPENSATION

THE SPECIFIED DIRECTORS OF THE CONSOLIDATED ENTITY DURING THE YEAR WERE:

NOTE 4 – EMPLOYEE ENTITLEMENTS

R. W. Lloyd (President) J. J. Rice, B.Econ. (Senior Vice President)

A F Caddy, P.S.M., B.Comm. (Vice President) P. L. Rollings (Vice President)

D. N. Grimmond OAM FREIA (Director) J. A. O’Loughlin, AFSAE (Director)

M. B. Laughlin B Arts (Director) K. Marshall (Director)

S. C. Plummer (Director) J. J. Lewis (Director)

C.Behrens (Director)

The specified executives and other key members of management personnel of the consolidated entity during the year were:

G. Mitchell (Chief Executive Officer) C. Sawyer (General Manager)

R. Frazer (Company Secretary) E. Khaw (Finance Manager)


NOTE 6 – KEY MANAGEMENT PERSONNEL COMPENSATION (CONTINUED)

Consolidated

a) Key management personnel compensation2008

$

2007

$

The aggregate compensation of the key management personnel of the consolidated entity, is set out below:

Short-term employee benefits 646,534 729,643

Other long-term benefits 21,199 13,739

Termination benefits 33,327 7,609

701,060 750,991

During the year, there were 5 employees who received total remuneration equal to or more than the amount prescribed under regulation 74 of the Gaming Machine Act 2004, being $100,000 (2007:5 employees).

Consolidated

b) Directors compensation2008

$

2007

$

Included within key management compensation in note 6 (a) above is compensation paid or payable, or otherwise made available, in respect of the financial year, to all directors of the company, directly or indirectly, by the company or by any related party. This represents payments for out of pocket expenses as approved at the 2001 Annual General meeting in accordance with Article 56A of the articles of association.

103,329 96,551

NOTE 7 – SEGMENT REPORTINGThe consolidated entity operates in one business segment, being the operation of a registered club. Although this business generates different revenues (refer note 3) the risks and returns are considered to be similar. The consolidated entity also operates in only one geographic segment as it operates solely within the ACT.

NOTE 8 – CONTINGENT LIABILITIESIn the ordinary course of business, the consolidated entity becomes involved in litigation, most of which falls within the consolidated entity’s insurance arrangements. While the outcomes are uncertain, the directors believe that no other matters exist which would have a material adverse effect on the consolidated entity’s operations.


NOTE 9 – REMUNERATION UNDER CONTRACTUAL ARRANGEMENTS AND CONSULTANCIESContractors or consultants who received or were due to receive $49,999 or more under contractual arrangements:

Contractor/Consultant

A1 Premium Services ACTEWAGL

ALSCO Aristocrat Leisure Industries

Chubb Security Deloitte Touche Tohmatsu

De Marco Property Developments Epicurean Contract Caterers

Honeywell Premier Venue Entertainment

International Gaming Technologies (I.G.T) Leading Edge Amusements

Reel Gaming Solutions SITA Environmental Solutions

Sky Channel Transact

TTM Security

NOTE 10 – SUBSEQUENT EVENTS On 1 July 2008 the company paid a deposit of $1,000,000 to secure the acquisition of the Western Districts Rugby Union Club (‘Wests’) from the Receivers and Managers, McGrathNicol. On 2 July 2008 the company agreed to the terms of sale. Following the agreement members of both clubs voted in an official ballot to authorise the transfer of the gaming machine licences held at each of the Wests three premises. As at 2 September 2008 the acquisition price was still being finalised with an estimated purchase price of $9,012,000.

NOTE 11 – ADDITIONAL COMPANY INFORMATIONCanberra Southern Cross Club Limited is a company limited by guarantee, incorporated and operating in Australia. Its registered office and principal place of business is:

92-96 Corinna Street Phillip ACT 2606

Every member undertakes to contribute to the assets of the company in the event of and for the purposes of the winding up of the company, an amount not exceeding $2. There were 73,454 members at 30 June 2008 (2007: 72,971 members).


Graphs

Consolidated Expenses from Ordinary Activity 2007/08

Depreciation and amortisation – $4.7m

Utilities (Electricity, Fuel, Telephone and Rates) – $1.3m

Salaries&OnCosts–$11.8m

Gaming Promotions – $1m

Cost of Goods – $9.9m

Other Expenses – $8m

Gaming Revenue – $20.3m

Beverage Revenue – $5.1m

Food Revenue – $9.3m

Membership Income – $364,181

Members Entertainment Income – $633,995

Other Revenue – $2.7m

Consolidated Revenue from Ordinary Activity 2007/08


Cost of Sales – $2.1m

Depreciation Expense – $70,741

Wages and On Costs – $1.8m

Other Expenses – $338,574

Operating Surplus – $737,953

Graphs

Club Gaming Trading 2007/08

Club Liquor Trading 2007/08

Gaming Machine Levy – $4.5m


Gaming Promotions – $1m

Depreciation – $2m

Other Expenses – $1.6m

Operating Surplus – $9.3m


Entertainment Expenses – $242,012

Members Promotion Expenses – $380,875


Wages and On Costs – $772,318

Operating Deficit – $1.4m

Cost of Goods – $3.3m


Depreciation – $142,160



Graphs

Club Food Trading 2007/08

Club Members Trading 2007/08


Cost of Goods – $85,617

Wages and On Costs – $462,895

Depreciation – $310,700



Graphs

Sports & Recreation Trading 2007/08

Distribution of Poker Machine Dollars 2007/08

Return to Players – 91%

Direct Expenses including taxes and community expenses – 6%

Club Hold – 3%


In terms of the Club’s constitution the Directors of the Club can be 11 and no less than 9 in number. Currently there are 11 Directors of which 3 are required to stand down each year which is determined on a rotation basis.

This year the 3 Directors who had to stand down on a rotation basis were John Lewis, Mary Laughlin and Paul Rollings. Each of these Directors was eligible for re-election.

On the 23rd June nominations were called for the 3 positions of Directors and when nominations closed on the 7th July the only nominations

received were for the 3 Directors who needed to stand down, i.e. John Lewis, Mary Laughlin and Paul Rollings. Therefore there will be no need to conduct a ballot this year in regard to the election of Directors.

The election of the Board Executive for the 2008/2009 year is determined by ballot by all Directors and therefore the board will meet prior to the Annual General Meeting on the 15/10/08 and elect the Executive for the forthcoming year which will be announced at the Annual General Meeting.

Members should note that the next Annual General Meeting will be held in the Orion Room at Woden,

on Wednesday 15th October 2008 commencing at 8pm.

AGENDA

1 Apologies

2 Minutes of the 36th Annual General Meeting of 17th October 2007

3 Presentation of Annual Report

4 Presentation of Finance Reports and Balance Sheets

5 Auditor’s Report

6 Election of Directors

7 Appointment and remuneration of Auditors

8 Appointment of Patron

9 Such other business brought forward in conformity with the Constitution

10 Setting the Director’s honoraria for out of pocket expenses in accordance with Article 12.6

11 General Business

Election of Directors – 2008 General Meeting

Notice to Members – Annual General Meeting


Kim Marshall DiRECTOR

Rod Frazer COMPAny SECRETARy

Christopher Behrens DiRECTOR

John Lewis BA, CS, FAiCD DiRECTOR

Simon Plummer DiRECTOR

Mary Laughlin B Arts DiRECTOR

David Grimmond OAM (FREiA) DiRECTOR

Adrian O’Loughlin AFSAE DiRECTOR

Adrian Caddy PSM ViCE PRESiDEnT

Jack Rice B Econ SEniOR ViCE PRESiDEnT

Paul Rollings ViCE PRESiDEnT

Bob Lloyd PRESiDEnT

The Board of DirectorsCanberra Southern Cross Club


Woden | 6283 7200 92-96 Corinna Street Phillip ACT 2606

TuggeRAnong | 6293 7200 Cnr Holwell & Pitman Sts Tuggeranong ACT 2900

YAmbA SpoRTS Club | 6283 7300 Irving Street Phillip ACT 2606

YAChT Club & CRuiSeS | 6273 1784 ‘Lotus Bay’ Mariner Place Yarralumla ACT 2600

WeSTS | 6251 2255 Cnr Catchpole & Bowman Sts Macquarie ACT 2614

KAleen | 6241 2509 Georgina Cres Kaleen ACT 2617

TuRneR | 6247 7838 McCaughey St Turner ACT 2612

SouTheRn CRoSS heAlTh Club | 6283 7340 Irving St Phillip ACT 2606

piTCh n puTT | 6232 5494 Irving St Phillip ACT 2606

SouTheRn CRoSS SpoRTS STAdium – Woden | 6293 2275 Irving St Phillip ACT 2606

SouTheRn CRoSS SpoRTS STAdium – TuggeRAnong | 6293 2275 Cnr Colishaw & Athllon Dr Tuggeranong ACT 2900

[email protected]

www.cscc.com.au

Documents

Annual Report 2007 - 2008