Tamworth Services Club: Financial Statements

Directors’ report
For the year ended 30 June 2007

The directors present their report together with the financial report of Tamworth Services Club Limited (“the Company”) for the year ended 30 June 2007 and the auditor’s report thereon.

1.	Directors

The directors of the Company at any time during or since the end of the financial year are:

Director	Board Experience	Special Responsibility

Lloyd A Johnston	23 years	Chairman
Kenneth Halliday	19 years	Vice Chairman
Cedric C Green	19 years	Sports council
Fred Knight	15 years	Sports council
John M Wood	10 years	Treasurer / Membership committee
Graham Smee	3 years	Membership Committee
John K Black	2 year	Director (appointed 11 August 2006)

2.		Company secretary

Mr Gil Swan was appointed to the position of company secretary in January 2004. Mr Gil Swan is also the Chief Executive Office of the company.

3.			Directors’ meetings

The number of directors’ meetings and number of meetings attended by each of the directors of the Company during the financial year are:
	The number of directors’ meetings (including meeting of committees of directors) and number of meetings attended by each of the directors of the Company during the financial year are:
				Board meetings		Other meetings
	Director name			No. of meetings attended	No. of meetings held*	No. of meetings attended	No. of meetings held*

	Lloyd A Johnston			15	15	1	1
	Kenneth Halliday			14	15	1	1
	Cedric C Green			15	15	1	1
	Fred Knight			14	15	1	1
	John M Wood			13	15	1	1
	Graham Smee			13	15	1	1
	John K Black*			10	14	1	1


	* Reflects the number of meetings held during the time the director held office during the year.

Directors’ report (continued)
For the year ended 30 June 2007

4.					Principal activities

The principal activities of the Company during the course of the financial year consisted of the conduct and promotion of a licensed social club for members of the Company.

There were no significant changes in the nature of the activities of the Company during the year.

5.		Membership

The Company is a Company limited by guarantee and without a share capital. The number of members as at 30 June 2007 and the comparison with prior year is as follows:


					2007	2006
					No.	No.

	Ordinary				5,921	5,949
	Life				10	10
					5,931	5,959

6.		Operating and financial review

	*Overview of the company*

The profit for the year amounted to $113,305 compared with $300,105 for the prior year. This resulted after charging $357,987 of net depreciation (2006: $383,459) and $154,025 of net financing costs (2006: $160,533).

*Significant changes in the state of affairs*

In the opinion of the directors there were no significant changes in the state of affairs of the Company that occurred during the financial year under review.

7.			Dividends

The Company is a non-profit organisation and is prevented by its constitution from paying dividends.

8.				Environmental regulation

The Company’s operations are subject to various environmental regulations under both Commonwealth and State legislation.

The Board believes that the Company has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the Company.

Directors’ report (continued)
For the year ended 30 June 2007

9.	Events subsequent to reporting date

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

10.	Likely developments

The directors do not anticipate any particular development in the operations of the Company which will affect the result in subsequent years.

11.	Indemnification and insurance of officers

The Company has provided for and paid premiums during the year for directors’ and officers’ liability and legal expenses insurance contracts.

The insurance premiums relate to: · Costs and expenses incurred by the relevant officers in defending proceedings, whether civil or criminal and whatever their outcome. · Other liabilities that may arise from their position, with the exception of conduct involving a wilful breach of duty or improper use of information or position to gain a personal advantage.

The directors have not included details of the nature of the liabilities covered and the amount of the premium paid in respect of the directors’ and officers’ liability and legal expenses insurance contracts, as such disclosure is prohibited under the terms of the contract.

12.	Lead auditor’s independence declaration

The Lead auditor’s independence declaration, is set out on page 4.



This report is made with a resolution of the directors:

Dated at Tamworth this 24th day of August 2007.

______________________                       ___________________
L A Johnston                                        K Halliday
Director                                                       Director

Lead auditor’s independence declaration under Section 307C of the Corporations Act 2001

To: the directors of Tamworth Services Club Limited

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2007 there have been:

· no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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

KPMG

John O'Donnell

Partner

Sydney

24 August 2007