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Year Ended 30th April 2019
ANNUAL REPORT134th
Royal Queensland Yacht Squadron Limited
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D2
F O U N D E D 1 8 8 5 O F F I C E B E A R E R S 2 0 1 8 - 2 0 1 9
BY WARRANTDated 21 July 1894
Under the Seal of Office of the Lord High Admiral of the United Kingdom of Great Britain and Ireland etc., Members of the Club are permitted to wear on Board their respective vessels the Blue Ensign of Her Majesty’s Fleet, on certain conditions, as laid down in the said Warrant.
BY DESPATCHDated 13 March 1902
His Majesty, King Edward VII, has been pleased to bestow the title “Royal” upon the “Queensland Yacht Club”.
BY DESPATCHDated 12 July 1961
Her Majesty, Queen Elizabeth II, has been graciously pleased to approve the change of name of your club to the Royal Queensland Yacht Squadron.
INCORPORATIONRoyal Queensland Yacht Squadron Limited Australian Company Number 053 989 272 is a registered company under Division 1 or Part 2.2 of the Corporations Law of Queensland and because of its registration it is an incorporated company.
The company is limited by guarantee.
The company is a public company.
The day of commencement of registration is the fourteenth day of October 1991.
PATRONHis Excellency the Honourable Paul de Jersey AC, Governor of Queensland
COMMODOREMark Gallagher
VICE COMMODOREBarry Cuneo
REAR COMMODOREDavid Redfern
HONORARY TREASURERStephen Best
HONORARY MEASURERBill Wright
GENERAL MANAGERShawn Ket
GENERAL COMMITTEEStephen Best, Philippa Fenwick, Rod Johannessen, Fraser Spencer, Curtis Skinner, John Warlow
FINANCE, MARKETING &DEVELOPMENT COMMITTEEStephen Best (Honorary Treasurer & Chairman) Alexander Crooke, Peter Crowley, Andrew Gibbs, Westie McMillan
SAILING COMMITTEEJohn Warlow (Chairman), Louise Davis, Chris Morgan, Noel Paterson, Helen Warneke
POWERBOAT COMMITTEEPhilippa Fenwick (Chairperson), Glen Battershill, Peter Hulme, Chris Land, Simon McGuire
WORKS COMMITTEEFraser Spencer (Chairman)Geoff Stanhope, Rob Steele, Peter Watkins, Richard Wendt
HOUSE & ENTERTAINMENT COMMITTEE Rod Johannessen (Chairman),Todd Anderson, Trish Brewer, Stewart Cumming, Jan Ralph
MEMBERSHIP COMMITTEECurtis Skinner (Chairman), Daniel Alcock, Michael Moore, Grant Somerville, Cameron Whitford
Front Cover: VXOne Championship RacingOpposite page: Raceboards
3R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITYABN 25 053 989 272
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D4
C O M M O D O R E ’ S A N N U A L R E P O R T 2019I am pleased to report to members that at the end of the Squadron’s 18/19 Financial Year all areas of the Squadron are in good shape. This has been achieved through:
• A continued increase in participation by members across all areas of the Squadron, especially in sailing with exceptional fleet growth in the VXOne and Finn Class. The development of new events such as the Lendlease Brisbane to Hamilton Island Yacht Race offers an alternative for deep draft vessels to the Club Marine Brisbane to Keppel Yacht Race.
• The 2018 Etchells Worlds saw the Squadron showcased to a ninety-four boat fleet that included the cream of World sailors. The positive feedback on the Squadron, its facilities, and friendliness of members from competitors and officials was universal.
• Improvements in our business operations and corporate governance which has seen the Squadron’s revenue grow by some $5.3m to $13.5m, while adding 1000 new members over the past four years.
• Leveraging enhanced member services off our business operations and successful corporate and function activities.
• Embracing the emerging sharing economy through:
• Sail on Our Boats • Our Major Sponsor, Yachtshare • Day Pass / Sail Pass point of entry• Strategic Planning underpinned by: • A ‘three horizon’ strategic planning process
• A Capital Expenditure Plan • A dynamic and forward-looking Risk
Management Plan • Due diligence on all major projects• A committed and innovative management team
I am pleased to report that Squadron membership sustainability initiatives continue to be successful, and a simple measure of this success is the growth in our junior members from 60 in 2014 to 329 in 2019 meaning that the Squadron has the membership growth and demographics to ensure its longevity. Total membership as at 30 April 2019 was 4,506, with 79% of these members belonging to on-water
categories. There are also strong trends in social and crew membership categories transitioning to full and other on water membership categories. Full membership has grown again this year.
Squadron sailing activities in the past year have continued to grow, and on-water participation remains strong especially in our Academy and in other Junior programs.
In considering our commitment to the support of sailing at all levels, particularly among youth, it is important to note that the John Harrison Olympic Support Foundation is now fully subscribed. This has allowed the Foundation to distribute $135,000 to athletes this year. In the lead-in to the 2020 Olympics there have been notable performances from Squadron sailors: Jake Lilley, Mara Stransky, Tom Needham and Annie Eastgate.
I am also pleased to report that $22,000 in donations to the Wyuna Syndicate via voluntary donations with annual subscriptions were received. The Squadron encourages our members to consider donating to the several Squadron sponsored Australian Sports Foundation funding initiatives.
As a not-for-profit sporting organisation, RQYS’s primary purpose is providing the necessary facilities and services that allow our members to participate in their ‘sport’ – all manifestations of yachting and boating. Although seemingly simple in concept, facilitating the sport is a complex mission and involves managing a balance between short and long-term priorities across multiple foci including member services and facilities, sustainability and responsible fiscal management.
This year we will return a Net Profit of $50,601. This result may seem modest but is in fact a good result considering the not-for-profit status of the Squadron and the purposeful investment made in our athletes, members and infrastructure. Additionally, Earnings Before Interest, Tax and Amortisation (EBITDA) gives a clearer picture of the financial performance of the Squadron and Entities and of our overall trading performance generally. This year our EBITDA was in the order of $2 million. EBITDA is essentially our profit before the deduction of non-cash depreciation charges for previously acquired facilities.
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITY
ABN 25 053 989 272
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C O M M O D O R E ’ S A N N U A L R E P O R T 2019Overall, Marina trading is positive based on continuing recoveries in Marina 1 and very efficient operations in Marina 2, Slipway and Rentals in 2018/19. To cater for the growing number of multihulls seeking to use Squadron slipping facilities, and beam limitations with the existing Travelift, the Squadron has introduced into service a Roodberg 47 tonne lifter to cater for multihulls and wide beam vessels. To date the bookings and lifts on the Roodberg have exceeded expectations.
Club facility usage by members and visitors continues to increase and our Conference, Event and Function business has a loyal group of regular clients; most weekdays there is a conference or meeting being held at the Squadron. Seven-day trading and breakfast to dinner service periods now offer members access to food and beverage at all times throughout the week and weekend and is being well utilised. The Harbour View Restaurant has recently introduced a new contemporary menu guided by our new Chef John and the improvement in quality and menu diversity is already evident.Strategically the Squadron is well placed with healthy relationships with the State Government where we have provided subject matter and expertise on Marina Development and Management. These Government relationships have led to positive assistance and advice to the Squadron on a range of Marina and Reclamation matters.
In 2019/20 the Squadron will focus on the delivery of services to members, families and their guests across all business areas.
I want to thank and acknowledge the dedication and contribution of the Flag Officers, Honorary Treasurer, General Committee, Committees, Volunteers and Staff who have been instrumental in the Squadron’s success in 2018/19.
In closing my report, I thank the Squadron and its members who have afforded me the privilege of being your Commodore for the past two years.
See you down the Bay
Mark Gallagher Commodore
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D6
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITYABN 25 053 989 272
H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019As was the case last year, the accounts are presented short form to facilitate a better understanding by members of the financial affairs of the Squadron. The report complying with the Corporations Law appears later in this Annual Report.
Consistent with 2018, the consolidated financial statements of the Squadron and Controlled Entities (Squadron) include for reporting purposes the results of RQYS Marina Ltd and Royal Queensland Yacht Squadron John Harrison Olympic Support Foundation (JHOSF). It is important to note that the common or legal definition of “control” differs from the accounting definition contained within Australian Accounting Standard AASB 10. The accounting definition is broader in scope. Each entity within the consolidated group of companies is a separate legal entity. The consolidated group is not a legal entity.
The amount of income tax payable is determined for each legal entity. RQYS Marina Limited is assessed as being tax paying. With the exception of JHOSF, current tax rulings are in place recognising the other entities as non-tax paying. The tax status of JHOSF is dependent on its compliance with the Australian Tax Office Private Ancillary Fund guidelines under which it was established.
Near the end of the year, two new Trusts, RQYS Operations and RQYS Assets were established to hold, where feasible, the commercial operations and commercial assets of the Squadron. Income from these Trusts are distributed to the Squadron for the purpose of advancing sporting activities.
It is also important to note that as a Not for Profit organisation accounting standard AASB 1004 applies to the Squadron, with the exception of RQYS Marina Ltd, as such donations and grants are required to be recognised as income in the year they are received, even if the donation relates to an item of capital expenditure. The impact of this is for donations and grants to inflate profit/income in the year received and then subsequently to inflate depreciation in future years. Significant changes to relevant revenue and lease accounting standards will apply from the 2019/20 financial year. The impact of these changes have been assessed but not finalised.
The lease standard will result in the seabed lease covering the marina’s being capitalised as an asset and a liability, and a portion of the annual lease expense being recorded as interest expense.
The consolidated Profit After Tax (PAT) is $51k on revenue of $13.1 million. The primary variations between the 2017/18 consolidated PAT of $404k and the current year result, are lower government grant funding of $186k versus $213k, and the absence of a significant donation to JHOSF ($280k in 2018). The key components of the result based on management reports are as follows;
• Sporting operations incurred a loss of $431k before recognition of general sponsorships and government grants. Sailing Academy incurred a loss of $77k, Club Sailing a loss of $340k and Major Regattas a loss of $14k. Overall the operating expenditure on sporting operations was $998k compared to operating income of $567k. Sponsorships income of $61k and the government grants income of $186k for the Amenities Building and Windsurfing Precinct reduced the loss to $184k.
• The financial cornerstone of the Squadron is its substantial freehold property assets and facilities. Property, Fuel and Rentals plus Slipping generated a profit of $1,013k. A slipway trailer and tractor capable of providing incremental slipway capacity for vessels with a beam exceeding 5 metres, was acquired and started operation in February 2019. The new equipment was financed through equipment leases.
• Membership subscription income increased by 3.7%.
• The Marina’s excluding Slipping generated a profit of $122k. As foreshadowed at the 2016 AGM, the action of removing the subsidisation of Marina 1 sub-sub-lease berth charges from income derived from owned berths, berth rental commissions and other miscellaneous income continued. This action is being phased in over three years and follows on from the matters clarified by the legal judgement in Jensen &
7R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019
Ors vs RQYS & Ors. Of note in the financial year is a $335k cost value transfer of 19 marina berths from RQYS Marina Ltd to the newly established RQYS Assets Trust. The cost base of the berths transferred is recognised as an expense in RQYS Marina Ltd financial statements and offset by income in RQYS Assets Trust, hence netting off in these consolidated financial statements. The last remaining significant asset in RQYS Marina Ltd is the travel lift which will be transferred on completion of a refurbishment due in the next few years.
• The other contributors to the profit result are Member Services, Utilities and Administration $785k loss, Bar, Café, Restaurant and Events $123k profit, Grounds $315k loss, Canaipa $115k loss, Harbour Dredging Trust profit $53k, Motel $171k profit, and JHOSF $32k loss.
Earnings before interest and depreciation (EBITDA) was $2.15 million. After adjusting for non-cash revenue and expenses Operating Cashflow for the
financial year is $1.0m, reflecting lower income from grants and donations, and the completion of expenditure on dredging.
The Squadron’s strong financial position is underwritten by freehold property assets and growing membership numbers and participation.
The overall debt level increased with the addition of the equipment lease for the slipway trailer and tractor. Loans are now separated into current and non-current portions, reflecting the scheduled repayment of the Motel Loan $2.0m over 5 years from 2019, and the five year equipment lease repayment.
The outlook for 2019/20 is for a small operating profit.
Honorary Treasurer’s Short Form Financial report continued on next page
8 R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019
Year Ended 30 April 2019
Short Form Financial Report (Unaudited)
Revenues and costs
2019 2018
Total revenues 13,124,766 13,183,119
Total Costs 13,074,165 12,778,831
Profit before Depreciation, Interest and Tax 2,147,812 2,428,754
Depreciation 1,831,293 1,796,112
Finance Costs 265,918 228,354
Income tax 0 0
Profit/(Loss) for the year 50,601 404,288
Assets and liabilities
Assets
Cash 599,796 813,589
Debtors 2,218,211 2,097,172
Inventories 271,637 171,112
Prepaid expenses and other current assets 625,317 275,615
Income Tax Accounts 33,546 60,512
Property plant and equipment at net book value
Land and improvements to land
Manly 3,288,247 3,296,819
Canaipa 399,599 400,990
Buildings
New Clubhouse 2,078,318 2,121,622
Cavill Building 81,430 135,000
Marquee 515,189 534,322
Motel 2,655,239 2,796,774
Canaipa 104,124 108,839
Olympic Foundation 558,895 564,655
Marina Sports Amenities 1,244,178 0
Other 92,258 71,885
Marinas 16,830,390 17,631,495
Equipment and other assets 2,930,666 3,380,135
Total assets 34,527,040 34,460,536
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
9R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019
2019 2018
Liabilities and advance payments
Trade and other payables 2,411,127 2,074,136
Dredging fees in advance 331,317 263,105
Borrowings 3,197,071 2,864,868
Employee benefits provisions 388,249 533,258
Payments received in advance- marina rentals and membership fees 18,459,325 19,020,595
Liabilities and advance payments 24,787,089 24,755,962
Retained profits and reserves 9,739,951 9,704,574
Capital Expenditure (over $100,000)
Slipway Trailer and Tractor 329,594 0
Buildings - Sports Amenities Building 611,524 738,229
Vessels 135,643 246,457
RQYS JOHN HARRISON OLYMPIC SUPPORT
FOUNDATION and ISOSSF 2019 2018 2017
Payments in support of Sailors 135,000 81,575 20,428
Stephen BestHonorary Treasurer
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D10
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
S A I L I N G C O M M I T T E E R E P O R T 2019Participation is continuing to grow across the board, seasons entries are up 11% from last season and the number of sailors choosing to compete casually has increased. This comes in spite of a drop in Etchells seasons entries post the World Championships.
The Etchells Worlds were a resounding success and showcased our facilities and management across the world and most certainly will result in further international events held at our club..
New developing fleets include the Finns, VXOnes and Sabres and we are seeing an encouraging trend in viable one design fleets seeking quality club level competition for experienced competitors. The Inaugural VXOne International Cup (which may yet turn into their first worlds) will be held at RQYS in 2020.
The Academy and RQYouthSquad programs are continuing to perform well. This year we have seen more people participating, but an increasing trend from people to sail less regularly, and more occasionally. We have increasingly popular Off the Beach fleets like Windsurfing, Finns, Moths, and the VX’s, who are competing in regattas but not racing in regular club racing.
Club Junior members involved in Squad training now exceeds 140, with active participation in Optimist from Green Fleet to Open Fleet of over 60 sailors. The remainder are coming from strong fleets of sailors in the BicTechno, Laser 4.7, Laser Radial, Flying 11 and 29er classes.
Squadron results have continued to excel over the last 12 months, with great results across Olympic hopefuls, club sailors, and Junior and Youth. Our National Champions include Hamish Swain (Techno Windsurfing), Kristen Wadley (Laser 4.7), Luke Rogers (Flying 11 Junior), Annie Eastgate (US National Laser Radial), Mara Stransky (Australian Laser Radial), and senior sailors like Allan Moffat, Ben and Josh Franklin (VXOne Australian Champions) and Julien Savina (Windsurfing Australian Champion) to name just a few.
This year our Olympic aspirant sailors have represented us with distinction. In particular the
recent performances from Tom Needham and Mara Stransky, both graduates of our RQYouthSquad program, have demonstrated our Olympic hopes into the future, with Tom succeeding in cracking the top 25 in his first season in the 49er, and Mara qualifying herself for the Olympic Test event in Enoshima Japan later this year.
John Harrison Olympic Support Fund has provided $135,000 in funding to our Olympic athletes recipients in the last 12 months including, Jake Lilley, Mara and Tom. Our Youth athletes also received over $40,000 in funding through our Wyuna Interstate and Overseas Support Fund which has been generously boosted through member donations and is providing a huge leg up to our aspiring youth athletes.
Our Keel Boat divisions have also been seeing the benefits of running their own keel boat committee resulting in much better coordination for events on and off the water. Record entries were seen for Goodwill Cup and Myora Cup this season as well as a very strong showing for the upcoming club winter series and regattas. With more emphasis on invitation events the fleet sizes have improved substantially.
Our thanks once again go out to our multitude of Volunteers. It is humbling to see club members continually coming out of the woodwork to be involved in all manner of support activities on and off the water. There continues to be a great showing of community at the Squadron.
And last but not least thank you to our entire Sailing staff who are key to delivering world quality services that we enjoy at RQYS. John WarlowChairman - Sailing Committee
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ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
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R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D12
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
P O W E R B O AT C O M M I T T E E R E P O R T 2019 The Powerboat Committee includes the Sail and Power Cruising groups which operate independently and have delegates that report their activities at our meetings throughout the year. This has allowed the sharing of knowledge and participation by all groups represented on the Committee.
We all meet up at the end of the season for our annual ‘Cruising and Navigation Presentation Dinner’ where we celebrate our achievements for the year and award our perpetual and special trophies.
NAVIGATIONThe Powerboat Committee is responsible for organising and running three competitive Navigation events throughout the season. We cater for both GPS and Traditional navigation methods.• Goodwill Cup – November 2018
This is the premier event in the Log Eventing calendar, a shared event with Southport Yacht Club. Unfortunately for us SYC won the event this year, but planning has already started to ensure the Goodwill Trophy is returned home to Manly next season.
• Myora Cup – March 2019Numbers were down on previous years, however many boats attended simply for the overnight event at Canaipa, making it a successful weekend.
• Past Commodores’ Cup – May 2019With a morning start everyone was back at the Squadron for lunch and presentations. This is a good event to introduce the family to the sport of navigation eventing.
The inaugural Night Raid Navigation Event introduced members to the experience of navigating at night. Whilst the first was in August 2018 it was decided to bring it earlier in the year before those that go north for the winter could participate. We have now set it as an annual event in June. The last two have both been to Myora where this year the event attracted comments from others in the anchorage, ‘What’s happening, we’re being invaded by RQYS boats’. 13 boats arrived at three minute intervals, just what a night raid is.
POWER CRUSING by John HigginsThis season took us to many and varied destinations from Bribie Island at Easter for a fun filled weekend of challenges and games to Southport Yacht Club for the October long weekend to watch the footy grand finals. We joined up with the Sail Cruising group for Xmas in July and the Australia Day weekend at Canaipa holding the compulsory intergroup games and cricket match. Other destinations have included St Helena, Myora, Karragarra and Macleay. We held our Christmas function at the RQ beach where a delicious Pigrumkin (whole pig stuffed with a rump) was roasted on a spit.
SAIL CRUISING by Rosalie DolanRQYS Sail Cruising Group currently has 106 yachts (and growing) on its membership register. The main focus of the group during the past year is to continue to share cruising knowledge, sail in company and encourage membership.
Over the last year there have been monthly cruises to anchorages within Moreton Bay. These have been themed with a knowledge sharing aspect or a social activity. The Friday evening before the cruise has provided the opportunity to share cruising knowledge including briefing new cruisers on what they may expect on the Bay during the forthcoming cruise.
The group has enjoyed cruises further afield, such as this year’s cruise to Lord Howe Island. Each year also sees either a formal or informal cruise north by members of the group. A formal cruise to Keppel Bay and the Whitsunday’s is planned for this coming August and is open to both Power and Sail Cruising Groups. Shared events include Australia Day, Christmas in July and the Cruising and Navigation Presentation Night
Our intention for next year is to continue to grow our membership and include some one day family events.
Thank you to my committee, our many volunteers and members who support our events and to our sponsors who donate. Whether it’s cruising in company or competitive navigation, there is something for everyone!
Philippa FenwickChairperson – Powerboat Committee
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
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M E M B E R S H I P C O M M I T T E E R E P O R T 2019Membership of the Royal Queensland Yacht Squadron has continued an upward trend and in the last five years the Club has grown from 3,000 to over 4,000 members. At the heart of any club is its members and the Squadron is committed to giving value for membership to each member in a variety of ways. This remains the primary focus of the Membership Committee and is reflected in both member retention rates and new member numbers.
Upgrading from crew to full membership has been occurring at a steady rate and continues to be promoted at every opportunity. The new membership nights welcoming incoming members have grown in importance and the venue change to the deck has transformed these events into special social occasions.
Over the past year there has been significant growth in the engagement between sponsors and members and this has proven to be a positive relationship as it reaps additional benefits for both parties.
The Membership Committee has worked with the marketing team to ensure the club is utilising all possible avenues to promote the Squadron. For a second year running Royal Queensland Yacht Squadron has been involved with the Sanctuary Cove Boat Show. This presence at boating events provides a welcoming base for current members to visit, as well as, promoting the Squadron and all that it has to offer. This has been successful with several people taking up new membership.
To align with current trends Mainsheet is sent out on online as well now, to maximise accessibility for all members. Live streaming events and using social media has enabled the club to showcase a range of on-water events to a much wider audience than ever before possible.
Membership value is multi-faceted because the camaraderie gained amongst members is matched with world class facilities, including the marina complex and rigging lawns, restaurant and function areas, and Canaipa as an additional recreational space.
Royal Queensland Yacht Squadron is a premier club and the main function of the Membership Committee is to offer members a range of experiences which cater for all interests, meet new members and take recommendations to the General Committee. As Chairman of the Membership Committee I would like to personally thank my other Committee members; Michael Moore, Cameron Whitford, Daniel Alcock and Grant Somerville for their commitment over the past year and their input into decisions and initiatives. I would like to acknowledge Alicia Soszynski, our Membership Administrator, who should be commended for her tireless efforts this year, facilitating the Committee’s work.
Curtis SkinnerChairman - Membership Committee
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ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
H O U S E & E N T E R TA I N M E N T C O M M I T T E E R E P O R T 2019The past year has been significant for the hospitality team with continued growth in activity in bar, café, restaurant and functions, and in the range of product being offered to members. The past year has seen a number of changes in the hospitality function with a focus on improving the quality and consistency of the food and beverage products for our members. There have been a number of initiatives across bar, café, restaurant and functions to support the goal of meeting the needs of our ever growing and diverse membership.
The number of meals and food items served provides an idea of the scale of the hospitality operation. In a typical month the following items are served in the Harbour View Restaurant 500 entrees, 1,100 main meals and 200 deserts. In the café there are 800 main meals, 3,000 all day dining meals and 1,500 cabinet items (rolls etc).
Some staff changes throughout the year have provided an opportunity for Hospitality Manager, Beth Kucks to put in place a team of long-term hospitality industry professionals. A training program has also been put in place for key staff. This training includes nationally recognised wine appreciation courses to provide wait staff with a better understanding of the wines that are available for members and guests.
Earlier this year the Food and Wine Club was launched. The Food and Wine club provides for pre-sale of tickets to events, discounted wine and exclusive offers direct from the wine makers. Participation in the Food and Wine Club is included in your membership fee and can be organised by emailing [email protected]
We have built upon the success of the inaugural Food and Wine dinner last year, by holding a further four wine dinners featuring wines from Taltarni, Hentley Farm, Peter Lehmann and Rymill. Food and Wine dinners are an example of a smaller group event and tailored approach to meeting the needs of our members.
The first Children’s Disco was held during the year. These events provide for a whole of family opportunity with parents dining in the restaurant while their children attend the Disco.
A recent initiative to assist members and class associations is the development of a comprehensive range of function packages to improve the consistency of our function product. These include a new initiative in the form of vessel catering. Members are now able to order food and beverages for delivery to your vessel to make that ‘day on the bay’ easier to organise.
There were several major events in the year. A stand out example was catering for the Etchell World Championships which was a challenge met with enthusiasm by the hospitality team. Over the 18th – 27th Oct period the Squadron served over 4,500 meals and 1,200 litres of tap beer. The success of the hospitality team in meeting the needs of both participants in the Etchell Worlds and RQYS members helps support our goal of being a preferred venue for regattas.
Two long standing members of the House and Entertainment Committee will not be continuing in 2019/2020. Jan Ralph has been a Committee member since 2016 and we appreciate Jan’s particular contribution as an elf for the Children’s Christmas party. Todd Andersen is stepping down to participate on Sailing Committee. Todd has been a Committee member for three years and a highlight of Todd’s time on the Committee includes proposing the Children’s Disco.
To keep up to date with what is happening at the RQYS social scene connect with us at Royal Queensland Yacht Squadron – Social on Facebook.
Rod JohannessenChairman - House & Entertainment Committee
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W O R K S C O M M I T T E E R E P O R T 2019
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
Major works for the year were the satisfactory completion of the new Marine Sports Amenity building. The building has been well received and now sits happily as an end stop to rigging lawn two and as a foil to the marine maintenance yard beyond.
Other projects in various stages of completion :• storage/dingy container sheds (in this years
budget)• multihull dry storage facility (commenced) • Cavill building rewaterproofing tenders received
and work commenced• marina piles lifecycle researched• marina headstocks investigated• Canipa ongoing maintenance • timber flag pole relocated
I will be stepping down this year as Works Committee chair and Curtis Skinner will move to this position from Membership. I wish Curtis well in this role and would to thank my fellow committee members for their continued and valued imput into the Squadron’s infrastructure.
Thank you: Richard Wendt, Peter Watkins, Geoff Stanhope and Rob Steele
Fraser Spencer Chairman - Works Committee
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ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
Aerial View of RQYS Canaipa
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
17R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
CONTENTS
Directors’ Report
Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
Statement of Profit or Loss and Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
PAGE
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24
25
26
42
43
F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D18
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
D I R E C T O R S ’ R E P O R T 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Directors' Report30 April 2019
The directors present their report, together with the financial statements of the Group, being the Company and itscontrolled entities, for the financial year ended 30 April 2019.
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:
Mark Drew Gallagher
Qualifications Grad.Dip. Law; Bach. Prof Studies; Dip. Fraud Investigation
Experience Member of General Committee for 6 years and Flag Officer for 6 years
Special responsibilities Commodore
Captain Barry EdwardCuneo
Qualifications Master Class 1 (Foreign Going) FNI
Experience Membership of General Committee for 5 years and Flag Officer for 5 years
Special responsibilities Vice Commodore
David Thomas Redfern
Experience Appointed as a Director 18 July 2017
Special responsibilities Rear Commodore
Stephen Graham Best
Qualifications B. Bus, Grad Dip Management, Diploma Company Directorship, FIPA, FFA,GAICD
Experience Member of General Committee for 3 years
Special responsibilities Honorary Treasurer, Chairman of Finance, Marketing & DevelopmentCommittee
Fraser Adrian Spencer
Qualifications B.Des. ST., B Arch, F.R.A.I.A
Experience Member of General Committee for 8 years
Special responsibilities Chairman of Works Committee
Curtis David Skinner
Qualifications B. Eng., B. Com.
Experience Member of General Committee for 5 years
Special responsibilities Chairman of Membership Committee
John William Warlow
Qualifications Advanced Diploma in Project Management, Certificate 4 in Building andConstruction, Licensed Real Estate Agent
Experience Member of General Committee for 4 years
Special responsibilities Chairman of Sailing Committee
1
19R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
D I R E C T O R S ’ R E P O R T 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Directors' Report 30 April 2019
1. General information
Information on directors
2
Philippa Anne Stafford Fenwick
Qualifications Cert. 4 in Maritime Operations, MICB Experience Member of General Committee for 4 years Special responsibilities Chairperson of House and Entertainment Committee (May - July 2018)
Chairperson of Powerboat Committee (August 2018 - July 2019)
Michael Charles Aitkinson Qualifications Cert IV Mech Experience Member of General Committee for 3 years - Resigned as director in July 2018 Special responsibilities Chairman of Powerboat Committee (May - July 2018)
Rod Johannessen Qualifications B. Bus, M. Bus Agribusiness, MAICD Experience Member of General Committee for 9 months - Appointed as director on 26 July 2018
Chairperson of House and Entertainment Committee (July 2018)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Principal activities
The principal activities of the Group during the financial year were to encourage, promote and further the sport of yachting, sailing, racing and to provide other services to members, acting as a marina and boat maintenance yard operator and landlord of a motel property .
No significant change in the nature of these activities occurred during the year.
Short & long term objectives
The Group's short and long term objectives are to:
Encourage people to the sport and pastime of sailing and boating, to provide marine sporting and recreational activities for members, foster members to achieve in competitive sailing, to provide a high standard of marina berths and facilities for members and to maintain the financial health of the entity.
Strategy for achieving the objectives
To achieve these objectives, the Group has adopted a strategic plan, annual business plan and planning by Directors and the Committees to support goals and actions of ongoing achievement.
Shawn KetQualifications MTMgt,GradDipExL,BA,DipT,FAIM,MAICDExperience CompanySecretaryfor2years GeneralManagerfor4yearsSpecialresponsibilities CompanySecretary GeneralManager
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Directors' Report 30 April 2019
1. General information
Information on directors
2
Philippa Anne Stafford Fenwick
Qualifications Cert. 4 in Maritime Operations, MICB Experience Member of General Committee for 4 years Special responsibilities Chairperson of House and Entertainment Committee (May - July 2018)
Chairperson of Powerboat Committee (August 2018 - July 2019)
Michael Charles Aitkinson Qualifications Cert IV Mech Experience Member of General Committee for 3 years - Resigned as director in July 2018 Special responsibilities Chairman of Powerboat Committee (May - July 2018)
Rod Johannessen Qualifications B. Bus, M. Bus Agribusiness, MAICD Experience Member of General Committee for 9 months - Appointed as director on 26 July 2018
Chairperson of House and Entertainment Committee (July 2018)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Principal activities
The principal activities of the Group during the financial year were to encourage, promote and further the sport of yachting, sailing, racing and to provide other services to members, acting as a marina and boat maintenance yard operator and landlord of a motel property .
No significant change in the nature of these activities occurred during the year.
Short & long term objectives
The Group's short and long term objectives are to:
Encourage people to the sport and pastime of sailing and boating, to provide marine sporting and recreational activities for members, foster members to achieve in competitive sailing, to provide a high standard of marina berths and facilities for members and to maintain the financial health of the entity.
Strategy for achieving the objectives
To achieve these objectives, the Group has adopted a strategic plan, annual business plan and planning by Directors and the Committees to support goals and actions of ongoing achievement.
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D20
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
D I R E C T O R S ’ R E P O R T FOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Directors' Report30 April 2019
1. General information
Members' guarantee
Royal Queensland Yacht Squadron is a Company limited by guarantee. In the event of, and for the purpose of windingup of the Company, the amount capable of being called up from each member and any person or association whoceased to be a member in the year prior to the winding up, is limited to $100 for members that are full members, $80 inthe case of country members and members who are residing outside of Queensland, life members, senior members,social members, crew members, young adult members and honorary members and $60 in respect of junior members.In the case of fully paid members, the payment of the fully paid membership fee discharges them from any furtherliability as members of the company.
2. Other items
Future developments and results
Likely developments in the operations of the Group and the expected results of those operations in future financialyears have not been included in this report as the inclusion of such information is likely to result in unreasonableprejudice to the Group.
Meetings of directors
During the financial year, 11 meetings of directors (including committees of directors) were held. Attendances by eachdirector during the year were as follows:
Directors'Meetings
Numbereligible to
attendNumberattended
Fraser AdrianSpencer
11 8
David ThomasRedfern
11 9
Curtis David Skinner 11 10
Mark Drew Gallagher 11 10
John William Warlow 11 11
Captain BarryEdward Cuneo
11 9
Philippa AnneStafford Fenwick
11 10
Michael CharlesAitkinson
2 2
Stephen GrahamBest
11 11
Rod Johannessen 9 7
3
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Directors' Report30 April 2019
Auditor's independence declaration
The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for theyear ended 30 April 2019 has been received and can be found on page 5 of the financial report.
Signed in accordance with a resolution of the Board of Directors:
Director: ............................................................... Director: ................................................................
Dated this .............................. day of .............................. 2019
4
Dated this 20th day of June 2019
21
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
21R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
A U D I T O R ’ S I N D E P E N D E N C E D E C L A R AT I O N FOR THE YEAR ENDED 30 APRIL 2019
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for the acts or omissions of financial services licensees.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
Crowe Horwath BrisbaneABN79981227862MemberCroweHorwathInternational
AuditandAssuranceServices
Level16120EdwardStreetBrisbaneQLD4000AustraliaTel+61732333555Fax+61732333567www.crowehorwath.com.au
Auditor’s Independence Declaration
AsauditorofRoyalQueenslandYachtSquadronLimitedanditscontrolledentitiesfortheyearended30April2019, Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:
i. nocontraventionsoftheauditorindependencerequirementsassetoutintheCorporations Act 2001 inrelationtotheaudit;and
ii. nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.
ThisdeclarationisinrespectofRoyalQueenslandYachtSquadronLimited anditscontrolledentities duringtheyear.
Crowe Horwath Brisbane
John Zabala (FCA)SeniorPartner
Location:BrisbaneDate: 20 June2019
5
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for the acts or omissions of financial services licensees.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
Crowe Horwath BrisbaneABN79981227862MemberCroweHorwathInternational
AuditandAssuranceServices
Level16120EdwardStreetBrisbaneQLD4000AustraliaTel+61732333555Fax+61732333567www.crowehorwath.com.au
Auditor’s Independence Declaration
AsauditorofRoyalQueenslandYachtSquadronLimitedanditscontrolledentitiesfortheyearended30April2019, Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:
i. nocontraventionsoftheauditorindependencerequirementsassetoutintheCorporations Act 2001 inrelationtotheaudit;and
ii. nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.
ThisdeclarationisinrespectofRoyalQueenslandYachtSquadronLimited anditscontrolledentities duringtheyear.
Crowe Horwath Brisbane
John Zabala (FCA)SeniorPartner
Location:BrisbaneDate: 20 June2019
5
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D22
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
S TAT E M E N T O F P R O F I T O R L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M EFOR THE YEAR ENDED 30 APRIL 2019
The accompanying notes form part of these financial statements
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 30 April 2019
Note
2019
$
2018
$
Member subscriptions 1,654,878 1,596,152
Bar, café, restaurant and functions 3,620,696 3,394,408
Rental income 399,407 391,948
Fuel income 1,603,426 1,299,801
Sporting income 1,043,212 1,197,956
Marina operations income 3,020,247 3,509,801
Miscellaneous trade and slipping income 1,274,038 1,180,417
Other income 472,020 327,303
Donation income 36,842 285,333
Total revenue 13,124,766 13,183,119
Cost of goods sold (2,677,649) (2,274,835)
Employee benefits expense (4,741,052) (4,656,710)
Depreciation expense (1,831,293) (1,796,112)
Insurance expense (188,316) (222,930)
Occupancy expenses (1,213,169) (997,917)
Other expenses 5 (1,303,076) (1,798,519)
Professional & Association expenses (291,911) (337,759)
Repairs and maintenance (561,781) (465,695)
Finance costs (265,918) (228,354)
Total expenses (13,074,165) (12,778,831)
Profit before income tax 50,601 404,288
Income tax expense 4 - -
Profit from continuing operations 50,601 404,288
Profit for the year 50,601 404,288
Other comprehensive income, net ofincome tax
Total comprehensive income for theyear 50,601 404,288
Profit attributable to:
Members of the parent entity 50,601 404,288
Total comprehensive income attributableto:
Members of the parent entity 50,601 404,288
The accompanying notes form part of these financial statements.6
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
23R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
S TAT E M E N T O F F I N A N C I A L P O S I T I O NFOR THE YEAR ENDED 30 APRIL 2019
The accompanying notes form part of these financial statements
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Statement of Financial PositionAs at 30 April 2019
Note
2019
$
2018
$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 6 599,796 813,450
Trade and other receivables 7 2,003,667 1,632,210
Inventories 271,637 171,112
Current tax receivable 17 - 25,243
Other assets 10 625,317 289,437
TOTAL CURRENT ASSETS 3,500,417 2,931,452
NON-CURRENT ASSETS
Trade and other receivables 7 214,544 451,140
Property, plant and equipment 8 28,123,294 28,245,762
Investment properties 9 2,655,239 2,796,774
Deferred tax assets 17 33,546 35,262
TOTAL NON-CURRENT ASSETS 31,026,623 31,528,938
TOTAL ASSETS 34,527,040 34,460,390
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 11 2,411,127 2,073,994
Borrowings 12 730,701 2,864,868
Current tax liabilities - (4)
Employee benefits 14 388,249 504,551
Other financial liabilities 13 2,651,117 2,652,754
TOTAL CURRENT LIABILITIES 6,181,194 8,096,163
NON-CURRENT LIABILITIES
Borrowings 12 2,466,370 -
Employee benefits 14 - 28,707
Other financial liabilities 13 16,139,525 16,630,946
TOTAL NON-CURRENT LIABILITIES 18,605,895 16,659,653
TOTAL LIABILITIES 24,787,089 24,755,816
NET ASSETS 9,739,951 9,704,574
EQUITY
Reserves 52,526 67,750
Retained earnings/profit 9,687,425 9,636,824
Total equity attributable to equityholders of the Company 9,739,951 9,704,574
TOTAL EQUITY 9,739,951 9,704,574
The accompanying notes form part of these financial statements.7
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D24
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
S TAT E M E N T O F C H A N G E S I N E Q U I T YFOR THE YEAR ENDED 30 APRIL 2019
The accompanying notes form part of these financial statements
Royal Queensland Yacht Squadron Limited & its Controlled EntitiesABN: 25 053 989 272
Statement of Changes in EquityFor the Year Ended 30 April 2019
ISSOSF
$
ReservesWyuna
Syndicate
$
Trophy
$
RetainedEarnings
$
Total
$
Balance at 1 May 2018 23,521 2,320 41,909 9,636,824 9,704,574
Profit attributable to members ofthe parent entity - - - 50,601 50,601
Transactions with owners intheir capacity as owners - - - - -
Transfers to/(from) reserves (15,224) - - - (15,224)
Balance at 30 April 2019 8,297 2,320 41,909 9,687,425 9,739,951
ISSOSF
$
ReservesWyuna
Syndicate
$
Trophy
$
RetainedEarnings
$
Total
$
Balance at 1 May 2017 23,521 2,320 41,909 9,232,536 9,300,286
Profit attributable to members ofthe parent entity - - - 404,288 404,288
Transactions with owners intheir capacity as owners - - - - -
Balance at 30 April 2018 23,521 2,320 41,909 9,636,824 9,704,574
The accompanying notes form part of these financial statements.8
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
25R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
S TAT E M E N T O F C A S H F L O W SFOR THE YEAR ENDED 30 APRIL 2019
The accompanying notes form part of these financial statements
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Statement of Cash FlowsFor the Year Ended 30 April 2019
Note
2019
$
2018
$
CASH FLOWS FROM OPERATINGACTIVITIES:
Receipts from operations 12,502,888 12,157,827
Payments to suppliers andemployees (11,215,693) (10,928,491)
Interest received 157 1,815
Finance costs paid (265,918) (228,354)
Net cash provided by/(used in)operating activities 22 1,021,434 1,002,797
CASH FLOWS FROM INVESTINGACTIVITIES:
Payment for property, plant andequipment (1,567,292) (1,230,587)
Net cash used by investing activities (1,567,292) (1,230,587)
CASH FLOWS FROM FINANCINGACTIVITIES:
Net receipt/(repayment) ofborrowings 332,203 111,729
Net cash used by financing activities 332,203 111,729
Net increase/(decrease) in cash andcash equivalents held (213,655) (116,061)
Cash and cash equivalents atbeginning of year 813,450 929,511
Cash and cash equivalents at end offinancial year 6 599,795 813,450
The accompanying notes form part of these financial statements.9
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D26
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
The financial report covers Royal Queensland Yacht Squadron Limited & its Controlled Entities ('the Group'). RoyalQueensland Yacht Squadron Limited & its Controlled Entities is a not-for-profit Company limited by guarantee, incorporatedand domiciled in Australia.
Each of the entities within the Group prepare their financial statements based on the currency of the primary economicenvironment in which the entity operates (functional currency). The consolidated financial statements are presented inAustralian dollars which is the parent entity’s functional and presentation currency.
The financial report was authorised for issue by the Directors on the date of the Director Report signing.
Classification and presentation of items in the financial statements have changed in the 2019 financial year. Adherent toAustralian accounting standards, the comparative balances have also been reclassified and re-presented. Thisencompasses an overhaul of all items on the Statement of profit or loss and other comprehensive income into a moreappropriate disclosure of expenses by their nature. It is impracticable to state the amounts of all reclassified and re-presented balances. These adjustments were made to provide a greater value of reporting to the users of the financialstatements.
1 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with theAustralian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001.
2 Summary of Significant Accounting Policies
(a) Basis for consolidation
The consolidated financial statements include the financial position and performance of controlled entities fromthe date on which control is obtained until the date that control is lost.
Intragroup assets, liabilities, equity, income, expenses and cashflows relating to transactions between entitiesin the consolidated entity have been eliminated in full for the purpose of these financial statements.
Appropriate adjustments have been made to a controlled entity’s financial position, performance and cash flowswhere the accounting policies used by that entity were different from those adopted by the consolidated entity.All controlled entities have an April financial year end except for the Royal Queensland Yacht Squadron JohnHarrison Olympic Support Foundation, which has a June year end.
(b) Income Tax
(I) Royal Queensland Yacht Squadron Limited (Parent entity) - The company is exempt from the payment ofincome tax under Section 50-45 of the Income Tax Assessment Act 19997.
(II) RQYS Marina Limited (Controlled entity) - The charge for current income tax expense is based on theprofit/(loss) for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates thathave been enacted or are substantively enacted by the balance date.
Deferred tax is provided on temporary differences which are determined by comparing the carrying amounts oftax bases of assets and liabilities to the carrying amounts in the consolidated financial statements.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period whenthe asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted orsubstantively enacted by the end of the reporting period.
10
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
27R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
(b) Income Tax
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extentthat it is probable that taxable profit will be available against which the deductible temporary differences andlosses can be utilised.
Current and deferred tax is recognised as income or an expense and included in profit or loss for the periodexcept where the tax arises from a transaction which is recognised in other comprehensive income or equity, inwhich case the tax is recognised in other comprehensive income or equity respectively.
(III) RQYS Motel Trust, RQYS Marina 1 Trust, Harbour Dredging Trust, RQYS New Marina Trust, RQYSDeanbilla Bay Trust, RQYS Nautical Trust and Royal Queensland Yacht Squadron John Harrison OlympicSupport Foundation (controlled entities) - These are discretionary trusts and as such will not pay income taxprovided the assessable income of the trust (calculated in accordance with the Income tax Assessment Act1997) is distributed to the trust's beneficiaries each year.
Royal Queensland Yacht Squadron is the nominated beneficiary of each trust (excluding Royal QueenslandYacht Squadron John Harrison Olympic Support Foundation) and it is the trustees' intention to ensure that theassessable income of the trusts is distributed each year.
(c) Leases
Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,are charged as expenses on a straight-line basis over the life of the lease term.
Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis overthe life of the lease term.
(d) Revenue and other income
Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the Group and specific criteria relating to the type of revenueas noted below, has been satisfied.
Revenue is measured at the fair value of the consideration received or receivable and is presented net ofreturns, discounts and rebates.
All revenue is stated net of the amount of goods and services tax (GST).
Sale of goods
Revenue is recognised on transfer of goods to the customer as this is deemed to be the point in time whenrisks and rewards are transferred and there is no longer any ownership or effective control over the goods.
Donations
Donations and bequests are recognised as revenue when received.
11
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D28
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
(d) Revenue and other income
Interest revenue
Interest is recognised using the effective interest method.
Rendering of services
Revenue in relation to rendering of services is recognised depending on whether the outcome of the servicescan be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the servicesis 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 recognisedthat are recoverable.
Rental income
Investment property revenue is recognised on a straight-line basis over a period of the lease term so as toreflect a constant periodic rate of return on the net investment.
Member Subscriptions
Revenue from 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 Group is entitled to it.
(e) Goods and services tax (GST)
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere 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 payablesin 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 flowsarising from investing and financing activities which is recoverable from, or payable to, the taxation authority isclassified as operating cash flows.
(f) Property, plant and equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulateddepreciation and impairment.
Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantlingand restoring the asset, where applicable.
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29R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
(f) Property, plant and equipment
Land and buildings
All assets are measured using the cost model.
Depreciation
Property, plant and equipment, excluding freehold land, is depreciated on a straight-line basis over the assetsuseful life to the Group, commencing when the asset is ready for use.
Marina 1 is located in an area which is subject to a lease from the Department of Transport. The lease, whichcommenced 19 March 1999, has an expiration date of 31 December 2028. A second lease has been enteredinto for the period commencing 1 January 2029 and has an expiration date of 31 December 2051.
Marina 2 is located in an area which is subject to a lease from the Department of Transport. The lease, whichcommenced 25 February 2010, has been extended for the period commencing 1 January 2029 and has anexpiration date of 31 December 2051.
The depreciation rates used for each class of depreciable asset are shown below:
Fixed asset class Depreciation rate
Capital works in progress 0%
Freehold land and ground improvements 2-25%
Buildings and improvements 2-20%
Marina 3.3-4.5%
Furniture, plant and equipment 10-33%
At the end of each annual reporting period, the depreciation method, useful life and residual value of each assetis reviewed. Any revisions are accounted for prospectively as a change in estimate.
(g) Investment property
Investment property is held at cost which includes expenditure that is directly attributable to the acquisition ofthe investment property. The investment property, being the Motel building and improvements are depreciatedon a straight line basis at 3.33% per annum.
(h) Financial instruments
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entitybecomes a party to the contractual provisions of the instrument.
The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fairvalue through profit or loss, transaction costs except where the instrument is classified at "fair value throughprofit or loss", in which case transaction costs are expensed to profit or loss immediately.
Financial assets at amortised costsThe Group classifies its financial assets as at amortised cost only if both of the following criteria are met: - the asset is held within a business model whose objective is to collect the contractual cash flows, and - the contractual terms give rise to cash flows that are solely payments of principal and interest
13
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D30
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N TSFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Notes to the Financial Statements For the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
(h) Financial instruments
14
Impairment of financial assets
At the end of the reporting period the Group assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired.
Financial assets at amortised cost
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate.
Impairment on loans and receivables is reduced through the use of an allowance account, all other impairment losses on financial assets at amortised cost are taken directly to the asset.
Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.
(i) Impairment of non-financial assets
At the end of each reporting period the Group determines whether there is an evidence of an impairment indicator for non-financial assets. Where an indicator exists the recoverable amount of the asset is estimated. Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.
Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss, except for goodwill.
(j) Borrowings
Borrowing costs are recognised as an expense when incurred.
(k) 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.
(l) Trade and other receivables
Accounts receivable are classified as subsequently measured at amortised cost.
The Company measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL). The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of conditions at the reporting date.
Trade debtors and other receivables are non interest bearing and receipt is normally on 30 day terms. Therefore, the carrying value of trade debtors and other receivables approximates its fair value.
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
31R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Notes to the Financial Statements For the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
15
(m) Trade and other payables
A liability is recorded for goods and services received prior to balance date, whether invoiced to the company or not. Trade payables are normally settled within 30 days.
(n) Employee benefits
Provision is made for the Group's liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be wholly settled within one year have been measured at the amounts expected to be paid when the liability is settled.
Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cashflows are discounted using market yields on high quality corporate bond rates, with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss.
(o) New Accounting Standards and Interpretations
New accounting standards for application in the current period
AASB 9 Financial Instruments AASB 9 Financial Instruments Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement; impairment; and hedge accounting. The transition provisions of AASB 9 allow an entity not to restate comparatives and the Group has elected not to restate as there is no material impact to the financial statement.
a) Classification and measurement The classification and measurement requirements of AASB 9 did not have any impact on the Group. The Group continued measuring at fair value all financial assets previously held at fair value under AASB 139.
b) Impairment The adoption of AASB 9 has not materially changed the Group's accounting for impairment losses for financial assets, though it is replacing AASB 139's incurred loss approach with a forward-looking expected credit loss (ECL) approach. AASB 9 requires the Association to recognise an allowance for ECLs for all debt instruments not held at fair value through profit or loss and contract assets. Upon adoption of AASB 9, there has been no need to recognise additional impairment on the Group's Trade Receivable as the default rates for its customers is at 0%.
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D32
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
(o) New Accounting Standards and Interpretations
New accounting standards for application in future periods
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatoryapplication dates for future reporting periods. The Group has decided not to early adopt these Standards. Thefollowing table summarises those future requirements, and their impact on the Group where the standard isrelevant:
Pronouncement AASB 15 Revenue from Contracts with Customers
Nature of the Change inAccounting Policy
The standard shifts the focus from the transaction-level to a contract-basedapproach.
Recognition is determined based on what the customer expects to beentitled to (rights and obligations), while measurement encompassesestimation by the entity of the amount expected to be entitled forperforming under the contract.
Effective Date Effective for periods beginning on or after 1 January 2019
Expected Impact on theFinancial Statements
The impact of this new standard will be assessed in the 2019 financialyear. It is not expected to have a significant material impact on the revenuerecognition of future revenues.
Pronouncement AASB 16 leases
Nature of the Change inAccounting Policy
Lessee entities will be required to recognise assets and liabilities arisingfrom all leases on the balance sheet, with the exception of leases of 12months or less and leases of small assets, such as laptops. Interestexpense and amortisation charges will be recognised in profit or loss.
A lessee is required to recognise a right of use asset representing its rightto use the underlying leased asset and a lease liability representing itsobligations to make lease payments. The right of use assets is measuredsimilarly to other non financial assets (such as property, plant andequipment) and lease liabilities similarly to other financial liabilities.
Lessor accounting will generally remain unchanged, meaning lessor andlessee accounting will not be ‘symmetrical’.
Effective Date Effective for periods beginning on or after 1 January 2019
Expected Impact on theFinancial Statements
As at the reporting date, the Group has non-cancellable operating leasecommitments of $14,242,921, see note 15. From preliminary assessment,the Group expects to recognise on 1 May 2019, right-of-use assets andlease liabilities (after adjustments for prepayments and accrued leasepayments recognised as at 30 April 2019) amounts not materially differentto the current year commitment as 30 April 2019.
The Group’s activities as a lessor are not material and hence the Groupdoes not expect any significant impact on the financial statements.However, some additional disclosures will be required from next year.
16
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
33R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
3 Critical Accounting Estimates and Judgments
The directors make estimates and judgements during the preparation of these financial statements regardingassumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financialstatements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below;
Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the consolidated entity thatmay lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset isdetermined. Value in-use calculations performed in assessing recoverable amounts incorporate a number of keyestimates. No impairment has been recognised for the year ended 30 April 2019 (2018: $NIL).
Useful lives
The Group assesses and determines the useful lives and residual values of property, plant and equipment. Thisassessment is made upon acquisition of the asset and reviewed on an annual basis for changes in estimate.Thisannual review has not resulted in the re-assessment of the useful lives for major assets held by the Group.
17
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D34
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Notes to the Financial Statements For the Year Ended 30 April 2019
18
4 Income Tax Expense
(a) Reconciliation of income tax to accounting profit:
2019 $
2018 $
Profit 50,601 404,288 Prime facie tax payable @27.5% (PY: 27.5%) 13,915 113,201
Add:
Tax effect of:
13,915 113,201
Less:
Tax effect of:
- Permanent adjustments 13,915 115,213 - Deductible temporary differences - (2,012)
- -
5 Other Expenses
Athlete distributions 157,010 81,575 Consumables 194,187 282,741 Function costs 234,182 176,780 Vessel costs 239,138 342,120 Volunteer expenses 38,178 40,065 Other expenses 440,381 875,238
1,303,076 1,798,519
6 Cash and Cash Equivalents Cash on hand 29,738 33,434 Bank balances 570,058 780,016
599,796 813,450
7 Trade and Other Receivables CURRENT
Trade and other receivables 1,852,682 1,479,510 Provision for impairment (26,000) (6,000) Dredging expenses recoverable 176,985 158,700
2,003,667 1,632,210
NON-CURRENT
Dredging expenses recoverable 214,544 451,140
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
35R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
8 Property, plant and equipment
2019
$
2018
$
Freehold land
At cost 2,120,000 2,120,000
Buildings
At cost 6,974,376 5,494,508
Accumulated depreciation (2,299,984) (1,958,185)
Total buildings 4,674,392 3,536,323
Capital works in progress
At cost 232,035 958,035
Furniture, plant and equipment
At cost 7,373,549 7,080,446
Accumulated depreciation (4,674,918) (4,658,346)
Total furniture, fixtures and fittings 2,698,631 2,422,100
Land and ground improvements
At cost 2,545,524 2,462,625
Accumulated depreciation (977,678) (884,816)
Total land and groundimprovements 1,567,846 1,577,809
Marina
At cost 23,856,975 23,856,975
Accumulated depreciation (7,026,585) (6,225,480)
Total Marina 16,830,390 17,631,495
28,123,294 28,245,762
9 Investment Properties
Cost 4,285,530 4,283,449
Accumulated depreciation (1,630,291) (1,486,675)
2,655,239 2,796,774
19
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D36
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
10 Other Assets
2019
$
2018
$
CURRENT
Prepayments 625,317 289,437
11 Trade and Other Payables
CURRENT
Trade payables 2,411,127 2,073,994
12 Borrowings
CURRENT
Secured liabilities:
Bank overdraft 29,700 32,063
Bank loans 394,251 2,832,805
Equipment leases 306,750 -
730,701 2,864,868
NON-CURRENT
Secured liabilities:
Bank loans 2,466,370 -
The bank loan is secured by a registered mortgage over the head lease held by RQYS Motel Pty Ltd over the propertyknown as "Manly Marina Cove Motel", a fixed and floating charge over all assets and uncalled capital of RQYS MotelPty Ltd and a guarantee by Royal Queensland Yacht Squadron Limited.
13 Other Financial Liabilities
CURRENT
Marina leases received in advance 2,319,800 2,389,649
Dredging trust funds held 331,317 263,105
2,651,117 2,652,754
NON-CURRENT
Marina leases received in advance 16,139,525 16,630,946
20
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
37R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
14 Employee Benefits
2019
$
2018
$
CURRENT
Long service leave 149,899 257,012
Provision for employee benefits 238,350 247,539
388,249 504,551
NON-CURRENT
Long service leave - 28,707
15 Leasing Commitments
(a) Operating leases
Minimum lease payments under non-cancellable operating leases:
- not later than one year 442,390 436,137
- between one year and five years 1,769,558 1,744,549
- later than five years 12,030,973 12,513,271
14,242,921 14,693,957
Marina 1 is located in an area which is subject to a lease held in the name of RQYS Marina Limited from theDepartment of Transport. The lease, which commenced 19 March 1999, has an expiration date of the 31 December2028. RQYS Nominees Pty Ltd as trustee of the Marina 1 Trust has entered into a lease from the Department ofTransport covering the area of Marina 1 for the period commencing 1 January 2029 and has an expiration date of 31December 2051. The lease commitments shown take into account the rentals in the lease from 2019 to 2051.
Marina 2 is located in an area subject to a lease from the Department of Transport. The lease, which commenced onthe 25 February 2010, had an expiration date of 24 February 2035, RQYS Nominees Pty Ltd as trustee for the NewMarina Trust has finalised negotiations with the Department of Transport to extend the lease from 25 February 2035and has an expiration date of 31 December 2051. The lease commitments shown include the Marina 2 lease to 2051
16 Members' Guarantee
The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each full member is required to contribute a maximum of $100 eachtowards meeting any outstandings and obligations of the Company, $80 in the case of country members and memberswho are residing outside of Queensland, life members, senior members, social members, crew members, young adultmembers and honorary members and $60 in respect of junior members. In the case of fully paid members, thepayment of the fully paid membership fee discharges them from any further liability as members of the company. At 30April 2019 the number of members was 4,506 (2018: 4,363).
21
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D38
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
17 Tax assets and liabilities
2019
$
2018
$
Current tax - 25,243
Note
OpeningBalance
$
Charged toIncome
$
ClosingBalance
$
Deferred tax assets
Provisions 2,100 (175) 1,925
Provisions - employee benefits 3,872 1,073 4,945
Fair value gain adjustments 27,285 1,114 28,399
Balance at 30 April 2018 33,257 2,012 35,269
Doubtful debts 1,925 - 1,925
Other provisions and accruals 4,945 - 4,945
Other temporary differences 28,399 - 28,399
Balance at 30 April 2019 4 35,269 - 35,269
18 Key Management Personnel Remuneration
Key management personnel remuneration included within employee expenses for the year is shown below:
Short-term employee benefits 297,662 290,416
Long-term benefits 16,640 16,640
Post-employment benefits 27,737 26,125
342,039 333,181
The above remuneration is of key executives, being the General Manager and Financial Controller of RoyalQueensland Yacht Squadron Limited. There has been no remuneration paid to Directors during the year.
22
39R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Notes to the Financial StatementsFor the Year Ended 30 April 2019
19 Interests in Subsidiaries
Composition of the Group
Parent
Royal Queensland Yacht Squadron Limited
Subsidiaries
RQYS Marina Limited
RQYS Motel Trust
RQYS Motel Pty Ltd ATF RQYS Motel Trust
RQYS New Marina Trust
RQYS Nominees Pty Ltd ATF RQYS New Marina Trust
RQYS Marina 1 Trust
RQYS Nominees Pty Ltd ATF RQYS Marina 1 Trust
RQYS Harbour Dredging Trust
RQYS Harbour Dredging Pty Ltd ATF RQYS Harbour Dredging Trust
RQYS Nautical Trust
RQYS Nominees Pty Ltd ATF RQYS Nautical Trust
RQYS Deanbilla Bay Trust (terminated during 2019)
RQYS Nominees Pty Ltd ATF RQYS Deanbilla Bay Trust (teriminatedduring the 2019)
RQYS Assets Trust
RQYS Assets Pty Ltd ATF RQYS Assets Trust
Manly Operations Trust
Manly Operations Pty Ltd ATF Manly Operations Trust
Royal Queensland Yacht Squadron John Harrison Olympic SupportFoundation
Royal Queensland Yacht Squadron John Harrison Olympic SupportFoundation Pty Ltd ATF Royal Queensland Yacht Squadron JohnHarrison Olympic Support Foundation
Country of Incorporation
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
PercentageOwned (%)
2019
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
PercentageOwned (%)
2018
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
20 Contingencies
In the opinion of the Directors, the Company did not have any contingencies at 30 April 2019 other than the existenceof a guarantee still in place between Westpac Banking Corporation and Royal Queensland Yacht Squadron Limitedwith respect to loan repayment obligations of RQYS Motel Pty Ltd, and a new guarantee between Westpac BankingCorporation and Royal Queensland Yacht Squadron Limited with respect to equipment lease of RQYS Nominees PtyLtd. At the date of this statement, there is no indication that any demand will be made under the guarantee. (30 April2018: Same circumstances as the current year).
21 Related Parties
The ultimate parent entity, which exercises control over the Group, is Royal Queensland Yacht Squadron Limitedwhich is incorporated in Australia and owns 100% of its Controlled Entities.
Key management personnel - refer to Note 18.
23
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D40
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Notes to the Financial Statements For the Year Ended 30 April 2019
21 Related Parties
24
Other related parties include close family members of key management personnel and entities that are controlled or significantly influenced by those key management personnel or their close family members.
Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.
Some of the Directors of the Company are also Directors of RQYS Marina Limited, RQYS Motel Pty Ltd (as trustee for RQYS Motel Trust), RQYS Nominees Pty Ltd (as trustee for the New Marina Trust, RQYS Marina 1 Trust, RQYS Nautical Trust, RQYS Deanbilla Bay Trust), RQYS Assets Pty Ltd (as trustee for RQYS Assets Trust), Manly Operations Pty Ltd (as trustee for Manly Operations Trust), Harbour Dredging Pty Ltd (as trustee for the Harbour Dredging Trust) and Royal Queensland Yacht Sqaudron John Harrison Olympic Support Foundation Pty Ltd (as trustee for Royal Queensland Yacht Squadron John Harrison Olympic Support Foundation.
It is to be noted that all the current Directors of Royal Queensland Yacht Squadron Limited, with the exception of Michael Charles Atkinson, Curtis David Skinner, Matthew Harrison, Matthew Allen, Fraser Adrian Spencer and Rod Johannessen, have an interest in berths managed and maintained by RQYS Marina Limited and/or RQYS Nominees Pty Ltd. This interest involves the lease holding or rental of Marina berths, with all transactions conducted at all times strictly at arm's length.
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Notes to the Financial Statements For the Year Ended 30 April 2019
26
22 Cash Flow Information
(a) Reconciliation of result for the year to cashflows from operating activities
Reconciliation of net income to net cash provided by operating activities:
2019
$ 2018
$ Profit/(loss) for the year 50,601 404,288 Cash flows excluded from profit attributable to operating activities
Non-cash flows in profit:
- depreciation 1,687,677 1,708,066 - amortisation of investment property 143,616 144,631 - provision for doubtful debt 20,000 6,000
Changes in assets and liabilities:
- (increase)/decrease in trade and other receivables (154,860) (71,703) - (increase)/decrease in other assets (335,880) (451,140) - (increase)/decrease in inventories (100,525) (2,072) - (increase)/decrease in deferred tax asset 1,719 576 - increase/(decrease) in current tax assets 25,248 (31,070) - increase/(decrease) in trade and other payables 321,905 (214,451) - increase/(decrease) in fees and levies in advance (493,058) (442,148) - increase/(decrease) in provisions (145,009) (48,180)
Cashflows from operations 1,021,434 1,002,797
23 Events after the end of the Reporting Period
The financial report was authorised for issue on the date of the Director report signing by the Board of Directors.
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
41R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities ABN: 25 053 989 272
Notes to the Financial Statements For the Year Ended 30 April 2019
26
24 Parent entity
2019 $
2018 $
Statement of Financial Position
Assets
Current assets 3,092,607 1,162,159 Non-current assets 9,122,210 8,689,016
Total Assets 12,214,817 9,851,175 Liabilities
Current liabilities 1,959,438 2,100,924 Non-current liabilities 931,370 28,707
Total Liabilities 2,890,808 2,129,631 Equity
Retained earnings 9,271,483 7,653,655 General reserve 52,526 67,750
Total Equity 9,324,009 7,721,405
Statement of Profit or Loss and Other Comprehensive Income
Profit/(loss) for the year (370,110) (369,520)
Total comprehensive income (370,110) (369,520)
Guarantees
Details of guarantees are disclosed in note 20.
Contingent liabilities
The parent entity did not have any contingent liabilities as at 30 April 2019 or 30 April 2018.
25 Statutory Information The registered office of and principal place of business of the company is: 578 Royal Esplanade, Manly QLD 4179
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D42
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
D I R E C T O R S ’ D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2019
Royal Queensland Yacht Squadron Limited & its Controlled Entities
ABN: 25 053 989 272
Directors' Declaration
The directors of the Company declare that:
1. The financial statements and notes, as set out on pages 6 to 25, are in accordance with the Corporations Act 2001and:
a. comply with Australian Accounting Standards - Reduced Disclosure Requirements; and
b. give a true and fair view of the financial position as at 30 April 2019 and of the performance for the year ended onthat date of the Company and consolidated group.
2. In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as andwhen they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Director ................................................................................................................................................
Director ................................................................................................................................................
Dated this .............................. day of .............................. 2019
26
Dated this 20th day of June 2019
26-41
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIES
ABN 25 053 989 272
43R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
I N D E P E N D E N T A U D I T R E P O R T FOR THE YEAR ENDED 30 APRIL 2019
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for the acts or omissions of financial services licensees.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
28
Crowe Horwath Brisbane ABN79981227862 MemberCroweHorwathInternational
AuditandAssuranceServices
Level16120EdwardStreet BrisbaneQLD4000 Australia Tel+61732333555 Fax+61732333567 www.crowehorwath.com.au
RoyalQueenslandYachtSquadron Limited anditsControlledEntities
Independent Auditor’s Report to the Members of Royal Queensland Yacht Squadron Limited and its Controlled Entities
Opinion
WehaveauditedthefinancialreportofRoyalQueenslandYachtSquadronLimited (theCompanyanditscontrolledentities (the“Group”)),whichcomprisestheconsolidatedstatementoffinancialpositionasat 30April2019,theconsolidatedstatementof profitorlossandother comprehensiveincome,theconsolidatedstatementofchangesinequityandtheconsolidatedstatementofcashflowsfortheyearthenended,andnotestothefinancialstatements,including a summary of significant accounting policies, and the directors’ declaration.
Inouropinion,theaccompanyingfinancialreportoftheGroupisinaccordancewiththeCorporations Act 2001,including:
(a) GivingatrueandfairviewoftheGroup’s financialpositionasat30April2019 andofitsfinancialperformancefortheyearthenended.
(b) ComplyingwithAustralianAccountingStandards– ReducedDisclosureRequirementsand theCorporations Regulations 2001.
Basis for Opinion
WeconductedourauditinaccordancewithAustralianAuditingStandards.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor’s Responsibilities for the Audit of the Financial Report sectionofourreport.WeareindependentoftheGroup in accordancewiththeauditorindependencerequirementsoftheCorporations Act 2001 andtheethicalrequirementsoftheAccountingProfessionalandEthicalStandards Board’s APES 110 Code of Ethics for Professional Accountants (theCode)thatarerelevanttoourauditofthefinancialreportinAustralia.WehavealsofulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.
WeconfirmthattheindependencedeclarationrequiredbytheCorporations Act 2001,whichhasbeengiventothedirectorsoftheCompany,wouldbeinthesametermsifgiventothedirectorsasatthetimeofthisauditor’s report.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D44
ROYAL QUEENSLAND YACHT SQUADRON LIMITEDAND CONTROLLED ENTITIESABN 25 053 989 272
I N D E P E N D E N T A U D I T R E P O R T FOR THE YEAR ENDED 30 APRIL 2019
30
▪ Concludeontheappropriateness of the directors’ use of the going concern basis of accounting and, basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditions that may cast significant doubt on the Group’s ability to continue asagoingconcern.Ifweconclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the relateddisclosuresinthefinancialreportor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, futureeventsorconditionsmaycausetheGrouptoceasetocontinueasagoingconcern.
▪ Evaluatetheoverallpresentation,structureandcontentofthefinancialreport,includingthedisclosures,andwhetherthefinancialreportrepresentstheunderlyingtransactionsandeventsinamannerthatachievesfairpresentation.
Wecommunicatewiththedirectorsregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.
Crowe Horwath Brisbane John Zabala (FCA) SeniorPartner
Location:Brisbane Date: 27June2019
45R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D46
47R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
RQYS MARINA LIMITEDABN 23 010 217 991
M A R I N A C H A I R M A N ’ S R E P O R T 2019
The 2018/19 financial year was a year of moving forward steadily for the Marina Company. Berthed in one of the best marinas in Australia our members have enjoyed making the most of their boating activities. Ongoing maintenance and quality management has kept the facilities world class and the envy of many other marina facilities, especially with the completion of the Marina and Sports Amenities Building offering improved toilet and shower facilities. Events of note in the year have been:• Good occupancy rates.• The generosity of C/D Row occupants vacating
their berths for the 94 boats that competed in the 2018 Etchells Worlds.
• The arrival and introduction into service of the Roodberg 47 tonne lifter. Since becoming operational we have seen an impressive array of vessels lifted that would been impossible with the travel lift.
• Hardstand usage has increased across the board, especially to cater for the Roodberg lifts.
• An ongoing emphasis on safe work practices throughout the Marina and work areas.
In response to member enquiries plans are well advanced for the development of onsite storage. I encourage you to read the Honorary Treasurer’s Report on Marina activities for further information on Marina financial and corporate operations.
Efficient marina, yard and hardstand operations ensure that optimum services are provided to members. Mark GallagherCommodore and Chairman RQYS Marina Ltd
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D48
RQYS MARINA LIMITEDABN 23 010 217 991
H O N O R A RY T R E A S U R E R ’ S R E P O R T 2019R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
The Statement of Profit and Loss is presented in a simpler format this year as the additional information provided last year was subsequently viewed as not being in strict compliance with accounting standards.
The overall Profit after Tax is a loss of $673k. The operating loss is $337k, the difference being an expense recognised of $335k for the transfer of berths at cost to the newly established RQYS Assets Trust. Following completion of Dredging the related income and expenses do not feature in the current years result. Employee expenses increased following the inclusion of annual leave and other on-costs.
As foreshadowed at the 2016 AGM, the action of removing the subsidisation of Marina 1 sub-sub-lease berth charges (half yearly charges) from
income derived from owned berths, berth rental commissions and other miscellaneous income, over three years was effectively completed. The RQYS Marina Board has agreed an annual half yearly charge increment of 5%+ CPI for the 2019/20 year.
It is important to note that the dredging cost in excess of the levies accumulated of $610k has been funded by a loan from RQYS Motel Limited, repayable from future dredge levies. This loan was reduced by $219k in the financial year.
Stephen Best Honorary Treasurer
RQYS MARINA LIMITEDABN 23 010 217 991
49R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
CONTENTS
Directors’ Report
Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001
Statement of Profit and Loss and other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
PAGE
50
52
53
54
55
56
57
67
68
F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D50
D I R E C T O R ’ S R E P O R TFOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991
Directors' Report 30 April 2019
1
ThedirectorspresenttheirreportonRQYSMarinaLimitedforthefinancialyearended30April2019.
1 General information
Information on directors
Thenamesofeachpersonwhohasbeenadirectorduringtheyearandtothedateofthisreportare:
Mark Drew Gallagher Qualifications Grad.Dip.Law,B.ProfStudies,Dip.FraudInvestigation Experience Directorforsixyears InterestsintheCompany BerthLeaseHolder Specialresponsibilities Commodore
Captain Barry Edward Cuneo
Qualifications MasterClass1(ForeignGoing)FNI Experience Directorforfouryears InterestsintheCompany BerthLeaseHolder Specialresponsibilities
ViceCommodore
David Thomas Redfern Experience Directorfortwoyears Specialresponsibilities RearCommodore
Stephen Graham Best Qualifications B.Bus,GradDipManagement,DiplomaCompanyDirectorship,
FIPA,FFA,GAICD Experience MemberofGeneralCommitteefor2years.Directorfortwoyears Specialresponsibilities HonoraryTreasurer,ChairmanofFinance,Marketing&Development
Committee
Samuel Dugald Henderson Qualifications FellowoftheInstituteofCharteredAccountants Experience FormerHonoraryTreasurer,FormerDirectorofRoyalQueensland
YachtSquadronLimited InterestsintheCompany BerthLeaseHolder
Directorshavebeeninofficesincethestartofthefinancialyeartothedateofthisreportunlessotherwisestated.
Principal activities
TheprincipalactivityofRQYSMarinaLimitedduringthefinancialyearwasprovidingandmaintainingmarinaberths.
NosignificantchangesinthenatureoftheCompany'sactivityoccurredduringthefinancialyear.
RQYS MARINA LIMITEDABN 23 010 217 991
51R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
D I R E C T O R ’ S R E P O R TFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Directors' Report 30 April 2019
1 General information
2
Short and Long term objectives
The Company's short and long term objectives are to provide the members with a high standard of marina berths, quality services and facilities.
Members' guarantee
RQYS Marina Limited is a Company limited by guarantee. In the event of, and for the purpose of winding up of the Company, the amount capable of being called up from each member and any person or association who ceased to be a member in the year prior to the winding up, is limited to $10 for all members, subject to the provisions of the company's constitution.
At 30 April 2019 the collective liability of members was $ NIL (2018: $ 4,640).
2 Other items
Future developments and results
Meetings of directors
During the financial year, 5 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
Mark Drew Gallagher 5 4 Captain Barry Edward Cuneo 5 5 David Thomas Redfern 5 4 Stephen Graham Best 5 5 Samuel Dugald Henderson 5 3
Auditor's independence declaration
The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 April 2019 has been received and can be found on page 3 of the financial report.
Signed in accordance with a resolution of the Board of Directors:
Director: ...............................................................
Director: ................................................................
Dated this .............................. day of .............................. 2019 Dated this 20th day of June 2019
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RQYS MARINA LIMITEDABN 23 010 217 991
A U D I T O R ’ S I N D E P E N D E N C E D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2019
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for the acts or omissions of financial services licensees.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
3
Crowe Horwath Brisbane ABN79981227862 MemberCroweHorwathInternational
AuditandAssuranceServices
Level16120EdwardStreet BrisbaneQLD4000 Australia Tel+61732333555 Fax+61732333567 www.crowehorwath.com.au
Auditor’s Independence Declaration
AsauditorofRQYSMarinaLimitedfortheyearended30April2019,Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:
i. nocontraventionsoftheauditorindependencerequirementsassetoutintheCorporations Act 2001 inrelationtotheaudit;and
ii. nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.
ThisdeclarationisinrespectofRQYSMarinaLimited duringtheyear. Crowe Horwath Brisbane John Zabala (FCA) SeniorPartner Location:Brisbane Date: 20 June2019
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation. Liability limited other than for the acts or omissions of financial services licensees.
The title ‘Partner’ conveys that the person is a senior member within their respective division, and is among the group of persons who hold an equity interest (shareholder) in its parent entity, Findex Group Limited. The only professional service offering which is conducted by a partnership is the Crowe Horwath external audit division. All other professional services offered by Findex Group Limited are conducted by a privately owned organisation and/or its subsidiaries.
3
Crowe Horwath Brisbane ABN79981227862 MemberCroweHorwathInternational
AuditandAssuranceServices
Level16120EdwardStreet BrisbaneQLD4000 Australia Tel+61732333555 Fax+61732333567 www.crowehorwath.com.au
Auditor’s Independence Declaration
AsauditorofRQYSMarinaLimitedfortheyearended30April2019,Ideclarethat,tothebestofmyknowledgeandbelief,therehavebeen:
i. nocontraventionsoftheauditorindependencerequirementsassetoutintheCorporations Act 2001 inrelationtotheaudit;and
ii. nocontraventionsofanyapplicablecodeofprofessionalconductinrelationtotheaudit.
ThisdeclarationisinrespectofRQYSMarinaLimited duringtheyear. Crowe Horwath Brisbane John Zabala (FCA) SeniorPartner Location:Brisbane Date: 20 June2019
RQYS MARINA LIMITEDABN 23 010 217 991
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S TAT E M E N T O F P R O F I T A N D L O S S A N D O T H E R C O M P R E H E N S I V E I N C O M E
FOR THE YEAR ENDED 30 APRIL 2019
The accompanying notes form part of these financial statements
RQYS Marina Limited ABN: 23 010 217 991
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 April 2019
Theaccompanyingnotesformpartofthesefinancialstatements. 4
Note 2019
$ 2018
$
Revenue Halfyearlymanagementcharges 1,158,768 944,921 Dredgingincome - 677,786 Otherincome 30,548 104,391 Totalrevenue 1,189,316 1,727,098
Expenses Employeebenefitsexpense (610,024) (476,855) Occupancyexpenses (482,923) (461,596) Professionalandassociationfees (41,944) (28,056) Repairsandmaintenance (54,726) (64,013) Insuranceexpense (80,490) (66,410) Facilitiesusagefee (117,161) (117,161) Financecosts (51,986) (34,129) Dredgingexpenses - (677,786) Otherexpenses (69,246) (64,877) Depreciationexpense (18,627) (27,960) Donationexpense - (480,000) Intra-companyassettransfer 4 (335,548) -
Totalexpenses (1,862,675) (2,498,843)
Profit/(loss) before income tax (673,359) (771,745)
Profit/(loss) for the year (673,359) (771,745)
Other comprehensive income for the year, net of tax - -
Total comprehensive income/(loss) for the year (673,359) (771,745)
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D54
S TAT E M E N T O F F I N A N C I A L P O S I T I O NFOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991
The accompanying notes form part of these financial statements
RQYS Marina Limited ABN: 23 010 217 991
Statement of Financial Position 30 April 2019
Theaccompanyingnotesformpartofthesefinancialstatements. 5
Note 2019
$ 2018
$
ASSETS CURRENTASSETS Cashandcashequivalents 5,605 5,953 Tradeandotherreceivables 6 249,053 1,098,506 Currenttaxasset 11 - 25,243 Otherassets 8 145,722 171,661 TOTALCURRENTASSETS 400,380 1,301,363 NON-CURRENTASSETS Tradeandotherreceivables 6 214,544 451,140 Property,plantandequipment 7 18,195 417,991 Deferredtaxassets 11 33,546 35,269 Otherassets 8 1,248,222 1,365,374 TOTALNON-CURRENTASSETS 1,514,507 2,269,774 TOTALASSETS 1,914,887 3,571,137
LIABILITIES CURRENTLIABILITIES Tradeandotherpayables 9 868,620 1,152,851 Otherliabilities 10 167,950 866,610 TOTALCURRENTLIABILITIES 1,036,570 2,019,461 NON-CURRENTLIABILITIES TOTALLIABILITIES 1,036,570 2,019,461 NETASSETS 878,317 1,551,676
EQUITY RetainedEarnings 878,317 1,551,676 TOTALEQUITY 878,317 1,551,676
RQYS MARINA LIMITEDABN 23 010 217 991
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S TAT E M E N T O F C H A N G E S I N E Q U I T YFOR THE YEAR ENDED 30 APRIL 2019
The accompanying notes form part of these financial statements
RQYS Marina Limited ABN: 23 010 217 991
Statement of Changes in Equity For the Year Ended 30 April 2019
Theaccompanyingnotesformpartofthesefinancialstatements. 6
2019
Retained Earnings
$ Total
$ Balance at 1 May 2018 1,551,676 1,551,676 Profit/(loss)fortheyear (673,359) (673,359)
Balance at 30 April 2019 878,317 878,317 2018
Retained Earnings
$ Total
$ Balance at 1 May 2017 2,323,421 2,323,421 Profit/(loss)fortheyear (771,745) (771,745)
Balance at 30 April 2018 1,551,676 1,551,676
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S TAT E M E N T O F C A S H F L O W SFOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991
The accompanying notes form part of these financial statements
RQYS Marina Limited ABN: 23 010 217 991
Statement of Cash Flows For the Year Ended 30 April 2019
Theaccompanyingnotesformpartofthesefinancialstatements. 7
Note 2019
$ 2018
$
CASH FLOWS FROM OPERATING ACTIVITIES: Receiptsfromcustomers 2,014,225 1,520,944 Paymentstosuppliersandemployees (1,962,744) (1,900,309) Interestreceived 157 1,013 Borrowingcostspaid (51,986) - Netcashprovidedby/(usedin)operatingactivities 16 (348) (378,352)
CASH FLOWS FROM INVESTING ACTIVITIES: Paymentforproperty,plantandequipment - (3,263) Netcashusedbyinvestingactivities - (3,263)
CASH FLOWS FROM FINANCING ACTIVITIES: Netincrease/(decrease)incashandcashequivalentsheld (348) (381,615) Cashandcashequivalentsatbeginningofyear 5,953 387,568 Cashandcashequivalentsatendoffinancialyear 5,605 5,953
RQYS MARINA LIMITEDABN 23 010 217 991
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
8
The financial report covers RQYS Marina Limited as an individual entity. RQYS Marina Limited is a Company limited by guarantee, incorporated and domiciled in Australia.
The functional and presentation currency of RQYS Marina Limited is Australian dollars.
The financial report was authorised for issue by the Directors on the date of the Directors report signing.
Comparatives are consistent with prior years, unless otherwise stated.
1 Basis of Preparation
The financial statements are general purpose financial statements that have been prepared in accordance with the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001.
The financial statements cover the RQYS Marina Limited as an individual entity. RQYS Marina Limited is a public company limited by guarantee, incorporated and domiciled in Australia.
The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.
Significant accounting policies adopted in the preparation of these financial statements are presented in the accounting treatment area of the relevant notes and are consistent with prior reporting periods unless otherwise stated.
2 Summary of Significant Accounting Policies
(a) Income Tax
The charge for current income tax expense is based on the profit/(loss) for the year adjusted for any non-assessable or disallowed items including commercial operations. It is calculated using tax rates that have been enacted or are substantively enacted by the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. Deferred tax is credited in the statement of profit or loss and other comprehensive income except where it relates to items directly to equity, in which case the deferred tax is adjusted directly in other comprehensive income.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and losses can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
9
(b) Leases
Leasepaymentsforoperatingleases,wheresubstantiallyalloftherisksandbenefitsremainwiththelessor,arechargedasexpensesonastraight-linebasisoverthelifeoftheleaseterm.
(c) Revenue and other income
ThecompanyisresponsibleformanagingtheberthswithinMarina1attheRoyalQueenslandYachtSquadronandchargeshalf-yearlymanagementfeestotheownersofthesubsub-leases.Half-yearlyfeesoccurinApril(forMaytoOctober)andOctober(NovembertoApril).Aliabilityforincomeinadvanceisrecognisedbythecompanywhenthefeeischarged,andrevenueisrecognisedeachmonth.
Interestisrecognisedasitaccruesusingtheeffectiveinterestmethod.Thisisamethodofcalculatingtheamortisedcostofafinancialassetandallocatingtheinterestincomeovertherelevantperiodusingtheeffectiveinterestratethatexactlydiscountsestimatedfuturecashreceiptsthroughtheexpectedlifeofthefinancialasset.
(d) Goods and services tax (GST)
Revenue,expensesandassetsarerecognisednetoftheamountofgoodsandservicestax(GST),exceptwheretheamountofGSTincurredisnotrecoverablefromtheAustralianTaxationOffice(ATO).
ReceivablesandpayablesarestatedinclusiveofGST.
ThenetamountofGSTrecoverablefrom,orpayableto,theATOisincludedaspartofreceivablesorpayablesinthestatementoffinancialposition.
CashflowsinthestatementofcashflowsareincludedonagrossbasisandtheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivitieswhichisrecoverablefrom,orpayableto,thetaxationauthorityisclassifiedasoperatingcashflows.
(e) Property, plant and equipment
Eachclassofproperty,plantandequipmentiscarriedatcostless,whereapplicable,anyaccumulateddepreciationandimpairment.
Costsincludepurchaseprice,otherdirectlyattributablecostsandtheinitialestimateofthecostsofdismantlingandrestoringtheasset,whereapplicable.
Plantandequipmentaremeasuredusingthecostmodel.
Plantandequipment,isdepreciatedonastraight-linebasisovertheassetsusefullifetotheCompany,commencingwhentheassetisreadyforuse.
Thedepreciationratesusedforeachclassofdepreciableassetareshownbelow: Fixed asset class Depreciation rate Plant&Equipment 10-25%
Attheendofeachannualreportingperiod,thedepreciationmethod,usefullifeandresidualvalueofeachassetisreviewed.Anyrevisionsareaccountedforprospectivelyasachangeinestimate.
RQYS MARINA LIMITEDABN 23 010 217 991
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
10
(f) Financial instruments
Financial instruments, incorporating financial assets and financial liabilities, are recognised when the entity becomes a party to the contractual provisions of the instrument.
The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs except where the instrument is classified at "fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately.
Impairment of financial assets
At the end of the reporting period the Company assesses whether there is any objective evidence that a financial asset or group of financial assets is impaired.
Financial assets at amortised cost
If there is objective evidence that an impairment loss on financial assets carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial assets original effective interest rate.
Impairment on loans and receivables is reduced through the use of an allowance account, all other impairment losses on financial assets at amortised cost are taken directly to the asset.
Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.
(g) Impairment of non-financial assets
At the end of each reporting period the Company determines whether there is an evidence of an impairment indicator for non-financial assets.
Where an indicator exists and regardless for goodwill, indefinite life intangible assets and intangible assets not yet available for use, the recoverable amount of the asset is estimated.
Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss.
Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss.
(h) 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.
(i) Trade and other receivables
Accounts receivable are classified as subsequently measured at amortised cost.
The Company measures the loss allowance for trade receivables at an amount equal to lifetime expected credit loss (ECL). The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for factors that are specific to the debtors, general economic conditions of the industry in which the debtors operate and an assessment of
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D60
N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
(i) Trade and other receivables
11
both the current as well as the forecast direction of conditions at the reporting date.
Trade debtors and other receivables are non-interest bearing and receipt is normally on 30-day terms. Therefore, the carrying value of trade debtors and other receivables approximates its fair value.
(j) Trade and other payables
A liability is recorded for goods and services received prior to balance date, whether invoiced to the company or not. Trade payables are normally settled within 30 days.
RQYS MARINA LIMITEDABN 23 010 217 991
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
2 Summary of Significant Accounting Policies
12
New Accounting Standards and Interpretations
New accounting standards for application in the current period
AASB 9 Financial Instruments (effective 1 January 2018) IFRS9FinancialInstrumentsFinancialInstrumentsreplacesIAS39FinancialInstruments:RecognitionandMeasurementforannualperiodsbeginning onorafter1January2018,bringingtogetherallthreeaspectsoftheaccountingforfinancialinstruments:classificationandmeasurement;impairment;andhedgeaccounting.ThetransitionprovisionsofAASB9allowanentitynottorestatecomparativesandtheCompanyhaselectednottorestateasthereisnomaterialimpacttothefinancialstatement.
a)Classificationandmeasurement TheclassificationandmeasurementrequirementsofIFRS9didnothaveanyimpactontheCompany.TheCompanycontinuedmeasuringatfairvalueallfinancialassetspreviouslyheldatfairvalueunderIAS39.
b)Impairment TheadoptionofIFRS9hasnotmateriallychangedtheCompany'saccountingforimpairmentlossesforfinancialassets,thoughitisreplacingIAS39'sincurredlossapproachwithaforward-lookingexpectedcreditloss(ECL)approach.IFRS9requirestheCompany torecogniseanallowanceforECLsforalldebtinstrumentsnotheldatfairvaluethroughprofitorlossandcontractassets.UponadoptionofAASB9,therehasbeennoneedtorecogniseadditionalimpairmentontheCompany'sTradeReceivableasthedefaultratesforitscustomersisat0%.
AASB 15 Revenue from Contract with Customers (effective 1 January 2018) AASB15establishesacomprehensiveframeworkfordeterminingwhether,howmuchandwhenrevenueisrecognised.ItreplacesAASB118Revenue,andrelatedinterpretations.UnderAASB15,revenueisrecognisedwhenacustomerobtainscontrolofthegoodsorservices.Determiningthetimingofthetransferofcontrol- atapointintimeorovertime- requiresjudgement.UponadoptionofAASB15,therehasbeennoimpactfortheCompany'srevenuerecognition.
New accounting standards for application in future periods
TheAASBhasissuednewandamendedAccountingStandardsandInterpretationsthathavemandatoryapplicationdatesforfuturereportingperiods.TheCompanyhasdecidednottoearlyadopttheseStandards.Thefollowingtablesummarisesthosefuturerequirements,andtheirimpactontheCompanywherethestandardisrelevant:
Pronouncement AASB 16 leases NatureoftheChangeinAccountingPolicy Lesseeentitieswillberequiredtorecogniseassetsand
liabilitiesarisingfromallleasesonthebalancesheet,withtheexceptionofleasesof12monthsorlessandleasesofsmallassets,suchaslaptops.Interestexpenseandamortisationchargeswillberecognisedinprofitorloss.
EffectiveDate Effectiveforperiodsbeginningonorafter1January2019 ExpectedImpactontheFinancialStatements Theimpactofthisnewstandardistobeassessedinthe2020
financialyear.Itisnotexpectedtohaveasignificantmaterialimpactonthefinancialstatementsoftheentity.
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
13
3 Critical Accounting Estimates and Judgments
The directors make estimates and judgements during the preparation of these financial statements regarding assumptions about current and future events affecting transactions and balances.
These estimates and judgements are based on the best information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
The significant estimates and judgements made have been described below.
Key estimates - Impairment
The Company assesses impairment at each reporting date by evaluating conditions specific to the company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value in-use calculations are performed in assessing recoverable amounts and incorporate a number of key estimates.
No impairment has been recognised for the year ended 30 April 2019 (2018: $NIL).
Key estimates - Useful Lives
The company assesses and determines the useful lives and residual values of property, plant and equipment. This assessment is made upon acquisition of the asset and reviewed on an annual basis for changes in estimate.
Key judgement - Income tax
For income tax purposes, the member contributions received for the dredging in advance constructive trust has been deferred for tax purposes on the basis that it qualifies as a constructive trust in favour of the berth sub sublessees.
4 Expenses
On 30 April 2019, 19 berths were transferred from Marina Ltd to RQYS Asset Trust at the book value. 17 berths do not have a book value as they were obtained at no cost, the other two berths have a book value of $408,000 at cost and $72,452.49 accumulated depreciation. This has resulted in a decrease in plant and equipment and a loss of $335,548 in the company.
RQYS MARINA LIMITEDABN 23 010 217 991
63R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
14
5 Income Tax Expense
(a) Reconciliation of income tax to accounting profit:
2019 $
2018 $
Prime facie tax payable 27.5% (2018: 27.5%) (185,174) (212,230)
Less:
Tax effect of:
Add:
Tax effect of: - Permanent adjustments 185,174 214,242 - Deductible temporary differences - (2,012)
Income tax expense - -
6 Trade and Other Receivables CURRENT Trade receivables 84,068 503,028 Allowance for expected credit losses (12,000) (2,000) Dredge expenses recoverable 176,985 158,700
249,053 659,728
Related party debtors 15 - 438,778
249,053 1,098,506
NON-CURRENT Dredge expenses recoverable 214,544 451,140
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
15
7 Property, plant and equipment Plant and equipment Atcost 731,703 1,139,703 Accumulateddepreciation (726,360) (779,289)
Totalplantandequipment 5,343 360,414 Capitalworksinprogress 12,852 57,577
18,195 417,991
8 Other Assets CURRENT Prepayments 145,722 171,661
NON-CURRENT Facilitiesusageandleasefeeinadvance 1,248,222 1,365,374
9 Trade and Other Payables CURRENT
Tradepayables 446,943 1,152,851 Relatedpartypayables 421,677 -
868,620 1,152,851
Tradeandotherpayablesareunsecured,non-interestbearingandarenormallysettledwithin30days. Thecarryingamountsareconsideredtobeareasonableapproximationoffairvalue.
10 Other Liabilities CURRENT Leviesandleasefeespaidinadvance 167,950 865,586 DredgingTrust - 1,024
167,950 866,610
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
16
11 Tax assets and liabilities Current tax asset - 25,243
Note
Opening Balance
$
Charged to Income
$
Closing Balance
$
Deferred tax assets
Balance at 30 April 2018 33,257 2,012 35,269 Doubtful debts 1,925 - 1,925 Other provisions and accruals 4,945 - 4,945 Other temporary differences 28,399 - 28,399
Balance at 30 April 2019 5 35,269 - 35,269
The fair value of the berths transferred would have been $806,000.
RQYS MARINA LIMITEDABN 23 010 217 991
65R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
N O T E S T O T H E F I N A N C I A L S TAT E M E N T SFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
17
12 Leasing Commitments
Operatingleases
2019 $
2018 $
Minimumleasepaymentsundernon-cancellableoperatingleases: - notlaterthanoneyear 326,761 321,798 - betweenoneyearandfiveyears 1,307,042 1,287,193 - laterthanfiveyears 1,529,061 1,827,637
3,162,864 3,436,628
ThemarinaislocatedinanareawhichissubjecttoaleasefromtheDepartmentofTransport.Thelease,whichcommenced19March1999,hasanexpirationdateof31December2028.
13 Members' Guarantee
TheCompanyisincorporatedundertheCorporations Act 2001 andisaCompanylimitedbyguarantee.IftheCompanyiswoundup,theconstitutionstatesthateachmemberisrequiredtocontributeamaximumof$10eachtowardsmeetinganyoutstandingsandobligationsoftheCompany.At30April2019thenumberofmemberswas- (2018:464).
14 Contingencies
IntheopinionoftheDirectors,theCompanydidnothaveanycontingenciesat30April2019(30April2018:None).
15 Related Parties
RoyalQueenslandYachtSquadronLimited(ultimateparententity)whichisincorporatedinAustralia,exercisescontroloverRQYSMarinaLimited.
Directors' Remuneration and Retirement Benefits
Thedirectors'receivednoremunerationorretirementbenefits(2018:$NIL).
Transactions and Balances with Director Related Entities
Detailsofdirector'sberthholding'sareincludedintheDirector'sreport.Transactionsenteredintowiththedirectorsare atarm'slengthandinaccordancewiththenormaltradingtermsofthecompany.
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
15 Related Parties
18
Loans to/from related parties
Unsecured loans are made between entities on an arm's length basis. There are no repayment terms set for any balance outstanding nor is there any interest payable for any balance outstanding. 2019 2018
Loans to/(from) related parties RQYS Motel Pty Ltd (421,677) 438,778
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N O T E S T O T H E F I N A N C I A L S TAT E M E N T S FOR THE YEAR ENDED 30 APRIL 2019
RQYS MARINA LIMITEDABN 23 010 217 991RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
19
16 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:
2019
$ 2018
$ Profit for the year (673,359) (771,745) Cash flows excluded from profit attributable to operating activities Non-cash flows in profit:
- depreciation 18,627 50,919 - movement in provision of doubtful debts 20,000 (5,000) - net (gain)/loss on transfer of plant and equipment 335,548 - - other non-cash income/expense item 45,620 -
Changes in assets and liabilities: - (increase)/decrease in trade and other receivables 627,271 28,899 - (increase)/decrease in related party loans 860,456 654,722 - (increase)/decrease in prepayments 143,092 132,462 - (increase)/decrease in fees and levies in advance (698,660) 112,218 - (increase)/decrease in deferred tax asset 1,719 (17,832) - increase/(decrease) in dredge expense recoverable - (609,840) - increase/(decrease) in trade and other payables (705,910) 46,845 - increase/(decrease) in current tax liability 25,248 -
Cashflows from operations (348) (378,352)
RQYS Marina Limited ABN: 23 010 217 991
Notes to the Financial Statements For the Year Ended 30 April 2019
20
17 Events after the end of the Reporting Period
The financial report was authorised for issue on the date of the Directors Report by the Board of Directors.
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.
18 Statutory Information The registered office of and principal place of business of the company is:
578 Royal Esplanade MANLY QLD 4179
RQYS MARINA LIMITEDABN 23 010 217 991
67R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
D I R E C T O R S ’ D E C L A R AT I O NFOR THE YEAR ENDED 30 APRIL 2019
RQYS Marina Limited ABN: 23 010 217 991
Directors' Declaration
20
ThedirectorsoftheCompanydeclarethat: 1. Thefinancialstatementsandnotes,assetoutonpages4to19,areinaccordancewiththeCorporations Act 2001 and:
a. complywithAustralianAccountingStandards- ReducedDisclosureRequirements;and
b. giveatrueandfairviewofthefinancialpositionasat30April2019andoftheperformancefortheyearendedonthatdateoftheCompany.
2. Inthedirectors'opinion,therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsasand
whentheybecomedueandpayable.
ThisdeclarationismadeinaccordancewitharesolutionoftheBoardofDirectors.
Director................................................................................................................................................
Director................................................................................................................................................
Datedthis..............................dayof..............................2019
Dated this 20th day of June 2019
57-66,
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RQYS MARINA LIMITEDABN 23 010 217 991
I N D E P E N D E N T A U D I T R E P O R TFOR THE YEAR ENDED 30 APRIL 2019
21
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the
Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the
preparation of the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the ability of the Company to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to o audit 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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
Conclude on the appropriateness of the Director’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to modify our auditor’s
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
RQYS MARINA LIMITEDABN 23 010 217 991
69R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D
I N D E P E N D E N T A U D I T R E P O R TFOR THE YEAR ENDED 30 APRIL 2019
21
Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and
fair view in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the
Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the
preparation of the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the ability of the Company to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Directors either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or
error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to o audit 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 Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the Directors.
Conclude on the appropriateness of the Director’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the
related disclosures in the financial report or, if such disclosures are inadequate, to modify our auditor’s
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Company to cease to continue as a going concern.
22
Evaluate the overall presentation, structure and content of the financial report, including the disclosures,
and whether the financial report represents the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify
during the audit.
Crowe Horwath Brisbane
John Zabala (FCA)
Senior Partner
Location: Brisbane
Date: 27 June 2019
R O YA L Q U E E N S L A N D YA C H T S Q U A D R O N L I M I T E D70
Royal Queensland Yacht Squadron LimitedCommodores
1885 - 1887 Sir Thomas McIlwraith, K.C.M.G, M.L.A.
1887 - 1890 The Hon. E B Forrest, M.L.C., M.L.A.
1890 - 1892 G Markwell
1892 - 1893 R P Earle
1893 - 1984 R H Lawson
1894 - 1895 J G Vidgen
1895 - 1897 J Clark
1897 - 1898 W J Weatherill
1898 - 1900 W A Douglass
1900 - 1902 J Clark
1902 - 1903 W A Douglas
1903 - 1919 T Welsby
1919 - 1921 W A Douglas
1921 - 1922 D MacTaggart
1922 - 1923 J Clark
1923 - 1925 J Love
1925 - 1927 W A Douglas
1927 - 1928 A L M Wilson
1928 - 1929 V Campbell
1929 - 1931 T L Jones
1931 - 1933 Dr C Croll
1933 - 1935 E Sparkes
1935 - 1936 T L Jones
1936 - 1938 A S Huybers
1938 - 1939 J R Figgis
1939 - 1946 F A Bruce
1946 - 1948 J Kelly
1948 - 1951 S N Gow
1951 - 1953 J H Robinson
1953 - 1955 T M Foggitt, D.S.C.
1955 - 1957 S N Wood
1957 - 1958 J H Robinson, M.B.E.
1958 - 1961 W E Whatmore
1961 - 1964 G Cavill
1964 - 1966 E T Early
1966 - 1968 N G Lockyer
1968 - 1971 K G N Kibble
1971 - 1973 J G M Tyquin
1973 - 1976 J Hattrick
1976 - 1979 D Bowly
1979 - 1981 N S Girdis, C.B.E.
1981 - 1982 A J Love O.A.M.
1982 - 1984 W J Thompson
1984 - 1986 J E Harrison, A.M.
1986 - 1988 W Bishop, O.A.M.
1988 - 1990 G J Sneesby
1990 - 1992 R E Crooke, O.A.M.
1992 - 1994 J A Ferguson, O.A.M.
1994 - 1996 B J Phillips
1996 - 1998 S H R Morris
1998 - 2000 R H Seymour
2000 - 2002 D R Land
2002 - 2004 J E Miall
2004 - 2006 W G Kirby
2006 - 2008 K A Miller
2008 - 2009 K J Anderson
2009 - 2011 C R McCart
2011 - 2013 G D Clarke
2013 - 2015 K A Miller
2015 - 2017 I R Threlfall
2017 - 2019 M D Gallagher
Major SponsorYacht Share
Corporate SponsorsAustralian Industry Trade College
Boutique Boats Company Club Marine
Coca ColaEnvy Scooters
Fareast GOA
Gold Coast City Marina Hardy Brothers Jewellers &
Wallace Bishop JewellersHeineken
Jetty Specialists Lendlease
Madison Technologies Marine Auctions
Maui Jim McGrath Real Estate
Moet & Chandon Morgans
Motorline Moco Food Services
Multihull Central Musto
North Sails Oatley Wines
PODS Ray White Marine
Robin Spencer Architects Safe Boating
SeAirLand Stefan
The Brokerage Trymax Marine
Veracity
ROYAL QUEENSLAND YACHT SQUADRON LIMITED
Sponsors 2018 | 2019We gratefully acknowledge the generous support
and assistance provided by our sponsors.