DUNKELD RACES 2015
CRV Annual report 2015-2016
The racing industry
provides an
economic benefit
of $940 million
to both regional
and rural Victoria
with more than
43,000 regional
participants in
the industry.
Racing also Helps
sustain more than
9,250 full-time
equivalent jobs.
The Hon Martin Pakula
MP Minister for Racing
2015-2016
Annual Report
It’s a Great Day Out
®
Contents
Notice of Annual General Meeting
2
Directors’ Profiles
4
Chairman’s Report
6
Chief Executive Officer’s Report
8
Chief Financial Officer’s Report 12
Marketing14
MT. WYCHEPROOF
Picnic Racing
22
Picnic Cup Winners
25
Country Cup Winners
26
Financial Reports
28
1
Notice of
Annual
General
Meeting
Notice is given that the Annual General Meeting
of members of Country Racing Victoria Limited will
be held on:
Date: Time: Location: Vision
To be a leader in the entertainment
industry by delivering the best
country racing.
Wednesday 9th November 2016
11.30am
Committee Room
Bendigo Jockey Club,
4 Heinz St, White Hills
The business of the Annual General Meeting shall be:
a) To confirm the minutes of the last Annual General Meeting held on Monday 9th November 2015
b) To receive reports from the Directors regarding the significant transactions of Country Racing Victoria Limited during the financial year ending
31 July, 2016.
c) To receive and consider the Financial Statements and the Auditors’ Report of Country Racing Victoria Limited for the financial year ending
31 July 2016.
d) To elect Directors in the place of those retiring;
and
e) To transact any other business which, under the Constitution or by the
provisions of the Act, ought to be or may be transacted at an Annual
General Meeting.
Mission
To grow Victorian country racing by generating a
profitable and sustainable business through the
experience of a ‘great day out’ and by maximising
returns to participants.
Scott Whiteman
Chief Executive Officer
2
3
Director
Profiles
Lance McMillan - Chairman
Briga Fliedner
Teacher; former primary school principal (16 years); consultant to the Education Department; Moe
Racing Club Committee (21 years); Moe Racing Club Chairman (10 years); Moe Racing Club Life
Member; Victoria Racing Club Member; Gippsland Racing Inc Chairman (7 years); Board Member of
CRV’s Thoroughbred Gaming Group (TGG) which is a joint venture between CRV and the Melbourne
Racing Club in Gaming; thoroughbred owner, Member of the CRV/RV Steering Committee.
Born into a family (Coffey) of horse enthusiasts. The family involvement in horse racing dates back
to the early 1900’s. Married to Shane Fliedner, former jockey, now a trainer. Currently training in
Bendigo. When Shane was riding, Briga held a trainer’s licence and in the 96/97 season won the
Mildura Trainer’s Premiership, being the first female to do so. Member of the Bendigo Jockey Club for
18 years, including 4 years as a Committee Member. An active member of the Victoria Wakeful Club.
Appointed to the CRV Board in May 2016.
Neil McRae – Vice Chairman
CRV Director since 1996, Life Member, President (10 years), Treasurer (three years), Committee
Member (since 1984) of the Echuca Racing Club, Northern District Racing Association delegate, Victoria
Racing Club Member, Moonee Valley Racing Club Member, Thoroughbred Breeders Victoria Member,
Member of CRV/RVL Infrastructure Sub Committee, bred and raced horses for more than 30 years.
Charles Armytage
Farmer; Life Member, former Chairman, Committee Member 27 years Hamilton Racing Club; delegate
South West Racing Association (six years); held Owner -Trainer permit for 10 years and trained both flat
and jumping horses, CRV Director since 2001; former Chairman Charolais Society of Victoria; Member
of Dunkeld Racing Club; Member of the Jumps Racing Advisory Committee, Member of the CRV/RV
Steering Committee, bred and raced horses in excess of 30 years.
Simon Cox
Businessman; Bachelor of Economics, Master of Business Administration, former member of
Chartered Accountants Australia and New Zealand, Graduate/Member of Australian Institute of
Company Directors; thoroughbred breeder for over 20 years; racehorse owner for more than 25
years; former committee member/President Ballan Jockey Club (3 years); member Ballan Jockey Club;
member Ballarat Turf Club; Victoria Racing Club member; Board Member of CRV’s Thoroughbred
Gaming Group (TGG) which is a joint venture between CRV and the Melbourne
Racing Club in Gaming; elected CRV Director in 2007.
Dr Kim McKellar
Veterinarian; Bachelor of Vet Science with Honours (Melbourne); Ballarat Veterinary Practice
partner (1972-2002); Director of Kensington Banks Equine Service at Caulfield (since 2003); Owner
Wyndholm Park Thoroughbred Stud since 1985; Director of Aquanita Racing, former Ballarat Turf Club
Chairman (3 years); former Ballarat Turf Club committee (16 years); Member of CRV/RVL Infrastructure
Sub Committee, former Thoroughbred Breeders Victoria committee member, elected CRV Director
2007.
Tim O’Brien
Accountant; Associate of Australian Society of CPA’s; Director of Riverwood Group; Life Member
and former committee person of Kyneton District Racing Club for 26 years; Served in all Executive
positions including President (5 years) and Treasurer (5 years); Member of the Thoroughbred Club of
Australia; Thoroughbred owner; Member of Melbourne Racing Club, Moonee Valley Racing Club and
Victoria Racing Club; elected CRV Director in 2008.
Victoria Armstrong
Podiatrist; Bachelor of Applied Science in Podiatry. Owner of Victoria Armstrong Podiatry established
24 years ago. Ballarat Turf Club Committee member for 14 years (serving as Chairman and Vice
Chairman). Racing Victoria Lady of Racing Award 1999. Member of Victoria Racing Club. Racehorse
owner for 20 years. Facilitated the Women in Country Racing Conference 2012. Elected CRV
Director since 2011.
4
5
CHAIRMAN’S
REPORT
The 2015 – 16 racing season has again seen
country racing playing a pivotal role in the
industry’s racing program providing
approximately 80% of the racing product and
44% of Tabcorp turnover.
The season’s highlights have included:
• The Bashboy/Ruby Walsh Grand National
Steeplechase win at Ballarat.
• Darren Weir’s continued dominance of Trainers’
Premierships reinforcing the excellent training
facilities we have at Warrnambool & Ballarat.
• The launch of the Night Racing Program at
Racing.Com park complementing the highly
successful Night Program at Cranbourne, a
further significant step forward for country racing.
• The success of the well received “Country
Racing – It's Got It All” advertising campaign.
• The continued strong support of Racing
Minister Martin Pakula and the Andrews’ Labor
Government through the Victorian Racing
Infrastructure Fund (VRIF) and the Raceday
Attraction Program (RAP) funding initiatives.
• The continued success of our stand alone
Saturday meetings at Ballarat and Bendigo
and the announcement of our third Standalone
Saturday for Pakenham Cup Day on December 3rd.
• The success of the Public Holiday Wodonga
Cup Day resulting in the club winning the Country
Event of the Year Award.
• The continued success of our “once a year”
clubs headlined by Dunkeld’s naming as joint
Country Club of the Year 2015 – 2016.
• Our $300K country cups at premier venues
Ballarat, Bendigo, Cranbourne & Geelong.
6
The racing industry in rural Victoria alone
generates more than $940M annually for the
Victorian economy and helps to sustain more than
9250 full-time equivalent jobs locally.
Aside from these economic benefits, country
racing also maintains a cultural heritage and a way
of life that is invaluable to the identity of so many
regional towns & cities.
Neville Wilson Medal for the Country Racing
Victoria Jockey of the Year - Dean Yendall
Our very successful “Country Racing – It's Got It
All” campaign aims to not only maintain but to
grow these benefits.
Equine Welfare continues to form a vital part in
the industry’s strategic initiatives with the recently
approved equine welfare strategic plan to further
increase focus on welfare compliance.
We need to further promote these non sporting
aspects of our country racing industry – the
economic, employment, financial & social
impacts.
I take this opportunity to thank our track
management teams and club volunteers for
their work in presenting the best quality racing
surfaces to attract competitive and larger fields
and of course minimising the risk of track bias,
scratchings and abandonments.
Congratulations to all award winners:
Country Racing Victoria Customer Service Award Ararat Turf Club
Country Racing Victoria Event of the Year Wodonga Gold Cup
Country Racing Victoria Apprentice Jockey of the
Year Award - Ben Allen
Tony Shanahan Award for Services to Country
Racing Victoria - Terry Maher (Wodonga)
Benefits to Communities
George Hanlon Trophy for the Country Racing
Victoria Trainer of the Year - Darren Weir
Thoroughbred racing in regional Victoria provides
a vital contribution to the local economy.
Country Racing Victoria Horse of the Year Leveraction
Media Contribution to Country Racing Victoria
Award - Ric McIntosh
Country Racing Victoria Club of the Year Pakenham & Dunkeld (joint winners)
The horse is our sport’s centrepiece & its welfare
is strongly valued by both CRV & RVL. Owners
can now contact Racing Victoria’s Off The Track
Program to seek a list of acknowledged retrainers
who can prepare & campaign a thoroughbred in
an equestrian career.
We continue to reap the financial benefits from
our gaming ventures with Melbourne Racing
Club through the Thoroughbred Gaming Group
(TGG). Both venues Junction & Croydon Hotels
have again returned significant dividends for
distribution to various projects at our country
venues and events.
The CRV Board again has worked very closely &
co-operatively with RVL Chairman David Moodie,
CEO Bernard Saundry, Steering Committee
Chairman Michael Caveny & RV Board Members
through the Steering Committee schedule of
meetings.
I take this opportunity to again thank outgoing
CEO Bernard Saundry for his great support
of, interest in and attendance at country race
meetings across the state.
We wish Bernard & Samantha all the best for the
future.
I acknowledge the support of my Deputy
Chairman Neil McRae and other CRV Directors &
especially commend the outstanding leadership
of Chief Executive Officer Scott Whiteman & his
highly efficient management team & staff.
We are most fortunate to have a leader & team
members who are totally committed to the
promotion & support of country Victorian racing.
One of our challenges going forward is to find
new & innovative ways to ensure that we keep
patrons coming back to the races as well as
attracting new race goers.
We therefore encourage all clubs to apply for
the Raceday Attraction Program (RAP) funds with
initiatives to drive on – course patronage at your
event days.
In closing I wish to record the CRV Board’s
appreciation for the valuable contribution of Peter
Crowe made during his tenure as a director of
CRV. We wish Peter & Toni all the best for their
future life adventures in Tasmania.
At the time of Peter’s resignation the Board took
the opportunity to co-opt Briga Fliedner on to the
team. Briga brings great experience & enthusiasm
for country racing in her newly appointed role.
Lance McMillan
Chairman
7
Chief
Executive
officer’s
REPORT
It is my honour to once again present the annual
report for Country Racing Victoria.
His season includes 223 country winners, 106
metro winners and 19 interstate winners.
The 2015/16 racing season was, by a number of
measures, an outstanding year for Country Racing
Victoria.
Prince of Penzance’s Melbourne Cup win was an
undeniable highlight of the racing season, and it
was a pleasure to witness Darren bringing the cup
home to Berriwillock.
The launch of the industry-owned Racing.com
television channel was a landmark moment for
Victorian racing, and we look forward to reaping
the benefits from it in the years to come.
Racing.com means Victorian racing is seen by
more Australians than ever, and the majority of the
racing shown is from country Victoria.
This has driven increased popularity of Victorian
wagering product, with annual turnover
increasing by 6.4%.
Racing.com continues to develop as a media
platform and we look forward to seeing coverage
of secondary country meetings expand in the
coming season.
The financial performance of our racing clubs was
another highlight for us, with only three of our
clubs not making a profit for the financial year.
Just three years ago twenty clubs suffered
operating losses.
These results are testament to sound financial
management and also the funding made available
to our industry thanks to the Victorian State
Government and Racing Victoria’s various funding
streams including media rights.
From a racing perspective, it was the year of
Darren Weir.
8
While “Weiry” has dominated on country
racetracks for years, last season saw him extend
that dominance to Melbourne and beyond,
breaking the national record for winners in a
single season of racing.
His success as a country trainer, and the
recognition given to Ballarat and Warrnambool as
training centres, can only benefit country racing
as a whole. As we’ve seen since, with the likes of
Michelle Payne and Matt Cumani choosing to train
at Ballarat, others will likely follow.
Ballarat also enjoyed one of the earliest highlights
of the season, with Irish Jumps champion Ruby
Walsh claiming the Grand National on Bashboy in
what was a memorable performance.
Racing.com Park continued to justify the effort and
vision of the Pakenham Racing Club, as it served as
the workhorse of the racing industry throughout
the 2015/16 racing season.
The racetrack hosted 48 meetings for the season:
19 on turf, 27 on the Polytrack synthetic surface,
and two hybrid meetings.
10 of those meetings were transfers from other
racecourses; 10 race meetings that may have
otherwise been lost.
The club also improved its training facilities and
financial performance for the season, while the
introduction of night racing was yet another
milestone for the club and another asset for
Country Racing Victoria and country racing in
general.
Pakenham also recorded record figures in
membership, social club members, cup day
packages and sponsorship was a deserving cowinner of the Country Racing Victoria Club of the
Year Award.
The co-winners of that award, the Dunkeld Racing
Club, are also to be commended for making the
most of their sole race day for the season.
The 2015 Dunkeld Cup was a truly great example
of the best of country racing, with close to 10,000
people attending the meeting.
The club also saw its profit increase by some 75
per cent, a fantastic result by any measure and a
reflection of the hard work put in by its passionate
volunteers each year.
Congratulations to all other winners and indeed
finalists for the season.
It was special to hear the heart-warming stories of
the owners of the horse of the year, Leveraction,
and also of Tony Shanahan Award winner Terry
Maher, having served racing with distinction over
many, many years on the committee at Wodonga.
Those of our race clubs willing to try something
innovative were most often rewarded.
The Benalla Racing Club’s decision to move
its cup day to the newly-founded Grand Final
Friday Public Holiday proved a winner, as the day
attracted a bumper crowd.
The club is also to be commended on securing a
stand-alone Saturday meeting for its cup day on
3rd December 2016.
9
Chief
Executive
officer’s
REPORT
CONT.
Yarra Valley Racing paired its Cox Plate Race Day
with an iconic element of the Yarra Valley tourism
scene – hot air balloons – and drew in thousands
of people through the day and night.
Racing Wodonga was rewarded for its previous
decision to pursue a local public holiday for its
cup day, with the Wodonga Cup named Country
Racing Victoria Event of the Year for the season
just gone.
The Ballarat Turf Club is to be commended for
its inaugural Jumps Racing Festival, despite the
uncooperative weather.
We encourage all of our clubs to think outside the
box, as the rewards are plain to see.
Our two hotels, the Junction and Croydon
continue to be an important part of our business.
Future revenue streams from their activities will
form a considerable funding source for clubs,
particularly after the successful renovation of the
Croydon Hotel this season.
CRV has committed to allocating 50% of the
profits to club projects and will deliver on this
commitment.
Kilmore is to be commended on its acquisition of a
second gaming venue, The Bendigo Club, which
will no doubt be of great benefit to the club.
Major infastructure projects such as the
Cranbourne Turf Club's on-course stabling and
the major track reconstruction at Seymour will
provide major benefits for participants in the years
to come.
On a personal note, I would like to thank outgoing
Racing Victoria CEO Bernard Saundry for his
efforts in supporting Country Racing Victoria
during his tenure.
10
Bernard has always done his utmost to help
improve country racing, and he will certainly be
missed.
His passion and enthusiasm for our industry and
his communication skills to all those involved in
country racing will be a necessary template for his
successor.
We are also grateful to Racing Victoria for their
ongoing support, as they undertake so many of
the functions vital to ensuring racing continues
around the state.
The club appointed Margot Falconer as chair,
the first female chair in the club’s history, and the
committee improved its female representation to
33%.
Of course there are many other ladies on our
committees, some on chairs and we thank them.
A number of important club committee members
resigned, retired or unfortunately passed away
this season and all will be sadly missed.
Thanks also to the city clubs for their assistance
during the season.
The Minister for Racing, Martin Pakula, continues
to be a very strong advocate for thoroughbred
racing in Victoria and we thank him for his
support.
Post this financial year, we were truly saddened by
the passing of Graham Brooke, our independent
governance consultant, whose wise counsel was
appreciated by all.
I would like to thank the Country Racing Victoria
board, and chairman Lance McMillan, for all
they’ve done this past year. The board as always
has demonstrated a great commitment to country
racing without bias.
Our small team at Country Racing Victoria
continues to do the work of many more, and I
thank them for their continued dedication and
hard work.
Thanks also to Peter Crowe, who resigned in May
after six distinguished years on the board.
The board was delighted to invite Briga Fliedner
to fill the casual vacancy after Peter’s resignation,
and she took to the role with great enthusiasm.
We now have a board with 25% female
representation and this is most important if we are
to grow our relevance in the wider community.
Croydon Hotel
Last, and certainly not least, thank you to our 67
racing clubs.
Thank you to the staff and volunteers who ensure
that country racing in Victoria is the best country
racing in this country, or any other.
Bring on 2016/17.
The number of female chairs and committee
members is increasing across our clubs as well.
The Bendigo Turf Club had some significant
changes to its committee, with long-term member
and chairman Brendan Drechsler retiring after
more than two decades of service.
Scott Whiteman
CEO
Country Racing Victoria
Croydon Hotel
11
Chief
FINANCIAL
officer’s
REPORT
CRV’s Operating Profit improved in the current
year to $515,911, after the loss recorded last year
due to the TVN valuation write-off.
interest rate of 8.41% in 2015/16, which is well
above the available term deposit rate of below
3%.
Marketing Spend on attracting customers to
Country racecourses increased to a record of over
$4m, largely due to support from the Office of
Racing for our marketing re-branding and other
initiatives.
CRV, together with MRC, have provided a letter of
financial support to TGG whereby CRV and MRC
are guaranteeing the liabilities of TGG. Due to the
existence of this guarantee, CRV is required to
recognise its share of TGG’s accumulated losses
of $831,000 at 30 June 2016 (2015: $342,000),
which CRV have recognised as a liability as at 31
July 2016.
The majority of our revenues from Racing Victoria
are still to be linked to the Victorian JV with
Tabcorp, which continue to face considerable
headwinds, so we continue to explore other
avenues of revenue to drive our support of
country clubs.
Thoroughbred Gaming Group (TGG) Update
Our 50% Joint Venture Partnership with
Melbourne Racing Club (MRC) continues to
perform well.
Our loan balance to TGG has increased to over
$10.7m, with the increase in the current year used
to fund a significant renovation at the Croydon
Hotel.
It is important to note that TGG has made a loss
over the life of its operations due to the higher
than normal interest rates paid to shareholders.
When you add together the interest received
in 2015/16 with the loss booked by equity
accounting then the profit earned by CRV for the
year from being invested in gaming is $407,831.
This means that the Internal Rate of Return (IRR)
was 3.83% for the year.
EBITDA is budgeted to increase significantly at the
Croydon Hotel next year as the full year impact of
the renovation is realised. This should improve our
total rate of return in future years.
CRV earns revenue from the joint venture by
providing loans to TGG and charging TGG interest
on those loans. As at TGG’s year end of 30 June
2016, CRV had outstanding loans to TGG of
$10,659,494. Interest was charged at an average
12
13
Marketing
Country
Racing
Victoria
Marketing
Update
During the 2015 – 2016 racing season Country Racing Victoria undertook a
significant relaunch of the brand by introducing the It’s Got It All Campaign.
The campaign was developed as a result of findings from an extensive
consumer research project conducted during the previous racing season.
The It’s Got It All campaign has 3 key communication pillars:
Social Day Out
• Country Racing is a great social outing
Celebrate the District
• Consumers want to know more about each of the regions that we race in
Spirit of Country
• Country Racing is the way racing used to be and is meant to be
The consumer research project also:
• Validated the work of CRV and the clubs over the past 5 years and continues the
momentum of A Great Day Out
• Reaffirms the importance of consistent marketing and on-track experience
• Explores and builds on CRV’s market position
It’s Got It All Campaign
A mix of 60 second and 3 x 30 second television commercials aired on high rotation in regional and
metro television markets from August 1st 2015.
The 3 x 30 second commercials focused on different experiences and packages suited to families,
metro audiences and a broader race-going audience. This was the largest television campaign ever
undertaken by Country Racing Victoria.
The television was supported by radio brand ads and live reads, as well an extensive print media
schedule, which included billboards across Melbourne’s major arterials and magazine and press ads
in multiple publications.
14
15
The key aims of evaluating the campaign were to determine its impact on:
• Awareness of country racing • Message
• Intention to attend
• Image of country racing
• Aware of campaign
• Emotional engagement with the campaign.
• Channel
• Likeability
Top 5
Key Post
Campaign
Research
Findings:
*Young and Jackson Billboard
Country
Racing
Victoria
Marketing
Update
cont.
Traditional communications were supplemented by an extensive digital media
campaign, including a redesigned responsive website, targeted banner
advertising, direct marketing to our customer database and more.
Country Racing Victoria also developed the new brand across its other major
seasonal campaigns for the remainder of the 2015/2016 racing season with
each country club provided with new marketing materials to support their own
local communications.
Post Campaign Research
Country Racing Victoria enlisted the services of Quantum Market Research to
conduct a post campaign research study of the Country Racing It’s Got It All
campaign.
The primary objective of this evaluation research was to understand the
impact the campaign has had in the marketplace via consumer engagement.
Additionally the findings from the research would be used to help secure
further Race Day Attraction funds for future advertising.
16
The research results have been overwhelmingly positive and provide CRV with a
tremendous insight on how we can move forward with the campaign.
1. These campaign evaluation results clearly demonstrate that CRV’s ‘It’s
got it all’ campaign was a success according to every measure.
It was well recalled, well liked, got the correct message across effectively, and
positively affected behavioural intention to attend Victorian country racing
events.
2. Of particular merit is how consistently the campaign resonated across
different demographics and backgrounds.
Young, old, men, women, avid race-goers and first-timers were all equally
positive toward the campaign, and were all influenced to increase their
attendance at country racing.
3. The campaign achieved the peripheral benefit of effectively promoting
Regional Victoria more broadly.
A large proportion of the audience agreed that it showcased the region
and made them feel good about country living (including those from Metro
Melbourne).
4. Notably, those who recalled seeing the campaign prior to being shown
ads as part of the survey were likely to answer even more positively than
those who had not.
This is a strong indication that, rather than becoming fatigued / annoyed by
the campaign, the audience has a threshold for repeat viewing, and that repeat
viewing effectively reinforces the message.
5. Additionally, when compared with VRC / MRC advertising, the majority
(72%) fed back that CRV advertising resonated more strongly with them.
Preference for CRV advertising was equally the case among the VRC / MRC’s
presumed target audiences of younger and metro race-goers.
17
Marketing
Campaigns
Christmas Phase 1
• Late July/Early August
• Mid November (Phase II)
• RAP funding of $150,000 received
for this campaign
Campaign Outcomes
Overall attendance improved by 63% and gate takings by 28%
2014
2015
ATTENDANCE 42,585 69,498
GATE
$342,609 $439,757
Spring Racing, It’s Got It All
• Early October to mid November
• RAP funding of $250,000 received
for this campaign
Campaign Outcomes
Overall attendance improved by 4.9% and gate takings by 3.1%
2014
2015
ATTENDANCE 139,702
146,598
GATE
$1,757,719 $1,812,621
Kids Summer of Country Racing
• Boxing Day to Australia Day
• Free kids’ showbags & activities
• 30 clubs including Picnoc clubs
• RAP funding of $300,000 received
for this campaign
Campaign Outcomes
Overall attendance declined by 4% and due to the poor weather on Boxing
Day gate takings declined by 1%.
18
2015
2016
ATTENDANCE 65,116
62,536
GATE
$580,432 $514,650
19
Marketing
Campaigns
Cont.
MArketing
objectives
2015/2016:
Relax at the Country Races
• Mid Feb - Late March
• RAP funding of $115,000 received
for this campaign
Campaign Outcomes
Overall attendance improved by 15.8% and gate takings by 13.6%
2015
2016
ATTENDANCE 49,457 57,268
GATE
$306,633 $355,061
Drive attendance for feature events
• Generate advanced bookings
Continually innovate our online experience
• Racing.com Integration
• Improved transactional processes – Magento/Dotmailer
• Improved customer analytics and reporting – ORO
• Improved scanning capabilities - ORO
Maintain our racing fashion presence (Online) – add metrics
MArketing
STRATEGIES
2015/2016:
Easter
• Free kids’ activities
• Easter egg hunt prize
• Family holiday prize
• RAP funding of $153,000 received
for this campaign
Country Racing Brand
• Grow the emotional connection with the consumer through our advertising
• 2nd Wave of advertising - It’s Got It All Campaign (August 1st 2016)
• Ensure all communication (CRV & Club) is consistent with new brand
• Drive traffic to the website (sales)
• Creates contacts for our remarketing program
• Develop new information and products to sell
Campaign Outcomes
Overall attendance improved by 24% and gate takings by 19%
• Celebrate the Region information and Packages
2015
2016
• Establish relationship with Tourism Victoria
ATTENDANCE 10,047*
12,528
• Continue the promotional budget to incentivise customers to buy
GATE
$67,133* $80,549
• It’s got it all products (Weekends Away, Picnic Packs etc.)
• Targeted offers (customers & B2B) via remarketing only to drive sales
* Last years numbers adjusted from actuals provided by clubs past last AGM.
20
21
DAVID BOURKE PICNIC CLUB
OF THE YEAR Balnarring Picnic Racing Club
NEVILLE & BEV SEYMOUR
ONE-MEETING CLUB AWARD Buchan & Gelantipy Race Club
TRAINER OF THE YEAR Barry Goodwin, with 15 wins for the season
UP & COMING RIDER Max Keenan
We congratulate all winners particularly Buchan
& Gelantipy Race Club for their first win in the
awards.
Picnic Racing
PICNIC
REPORT FOR
CRV 2016
AGM:
During the season 31 of the 34 allocated picnic
meetings were conducted. The Yea meeting on
19 December was abandoned on the Thursday
prior to the meeting due to a forecast for extreme
temperature. Drouin’s Boxing Day meeting
was cancelled on the day following rain on the
morning of the meeting, and the Woolamai
meeting of the 13 March was abandoned
following the discovery of a hole in the track.
The annual Picnic Awards Evening was again held
at the Cranbourne racecourse.
22
WINNERS OF THIS YEAR’S
AWARDS WERE:
PICNIC HORSE OF THE YEAR Freshwater Creek, trained by Barry Goodwin
LEADING RIDER Reece Goodwin, who had 104 rides for 29 wins
RUNNER-UP RIDER Courtney Pace, with 146 rides for 27 wins
BARRY RYAN MEMORIAL MEDAL Reece Goodwin
During the season a total of 59,833 customers
attended picnic racing, this is an increase on 14-15
of 3.7%. With gate revenue up 7.7% to $470,575,
this is a great achievement. Major contributors
to the increases were Balnarring’s 5 December
meeting – as the 2014 meeting was abandoned as
well as the improved weather for the Healesville
Cup Meeting in early January and increased
numbers at several other meetings.
Commencing with the Mansfield meeting on
6 December Sportsbet operated an off course
service to their customers. Of the 29 meetings
they operated on overall turnover was $389,777.
On course bookmakers turnover for the season
was$1,710,478. With on course tote turnover
totalling $976,916 28 meetings .
Starter numbers for the season were up 64 to
1233, with an average per race of 6.77 over the
182 picnic races.
Racing Victoria, after lobbying by CRV elected
to program a picnic race at the Cranbourne
professional night meeting on 9 October, some
2 weeks prior to the picnic season commencing
and a further race at the conclusion of the season
to celebrate the end of a successful season.
Turnover off and on course turnover on these races
was excellent, and RV have programmed similar
races for the coming season. These races gave
the picnic riders an opportunity to ride on a great
track and to show off their skills on television via
Racing.com and Sky Channel.
VRIF assistance was provided to the following
projects ensuring the season:
Drouin – Repairs/Upgrade to the Golf Crossing
Balnarring – Long sleeves for running rail.
Yea – Swab Box Upgrade
Mansfield – Law Water upgrade& Mower
purchase.
Alexandra-Yea – Tote Van & InfoVision Branding.
Dederang – Running Rail Improvements
23
Picnic Racing Highlights of the Year
• Balnarring PRC – 5 December meeting
Picnic Cup Winners 2015-2016
DateVenue
Race
Winner
Trainer
Jockey
$26,214. Australia Day Cup meeting 5,750 –
06/12/15
Mansfield
Christmas Cheer at
the Mansfield Cup
True Brave
Anthony Barber
Jack Peat
gate $53,190
26/12/15
Drouin
01/01/16
Merton
Merton Cup Picnic Races
Ruary Mac
Christopher Davis
Christopher Brown
02/01/16
Dederang
Dederang Cup Picnic Races
Mr Sommerville
Trevor Sutherland
Reece Goodwin
09/01/16
Healesville
Healesville Cup Picnic Races
Guadalcanal
Reg Manning
Toby Lake
23/01/16
Yea
Yea Cup Picnic Races
Kondoa
Barry Goodwin
Reece Goodwin
26/01/16
Balnarring
Balnarring Cup Picnic Races
Onya Keithy
Ricky Maund
Adam Bodey
06/02/16
Woolamai
Woolamai Cup Picnic Races
Keep Happy
Rebecca Waymouth
Debbie Waymouth
13/02/16
Buchan
Buchan Cup Picnic Races
Shanghai Rooster
Reg Manning
Toby Lake
28/02/16
Yea
Yea St Pats. Cup Picnic Races
Riley's Rocket
Paul Kramer Courtney Pace
05/03/16
Alexandra
Stonelea Alexandra Cup
The Sands
Barry Goodwin
Toby Lake
12/03/16
Hinnomunjie
Hinnomunjie Cup Picnic Races
Guadalcanal
Reg Manning
Courtney Pace
27/03/16
Swifts Creek
Tambo Valley Cup Picnic Races
Avon Country
John Kilgower
Reece Goodwin
attendance 4648 and gate revenue of
• Dederang Cup meeting attendance up 6.3%
to 1906
• Tambo Valley attendance up 1.8%, but gate
revenue up 67.3%
• Branding of tote trailer and InfoVision trailer
for the North East picnic Clubs.
• Healesville Christmas meeting attendance
up 31.9% to 3,107
24
A
B
A
N
D
O
N
E
D 25
Country Cup Winners 2015-2016
DateVenue
Race
Winner
Trainer
Jockey
DateVenue
Race
Winner
Trainer
Jockey
27/9/15
Coleraine
Coleraine Bendigo Bank Cup
Testy Sue
Ciaron Maher
Jackie Beriman
26/12/15
Nhill
Jim's Butchery Nhill Cup
Lady Cumquat
Patrick Payne
Holly McKechnie
2/10/15
Benalla
Sportsbet Benalla Gold Cup
Araldo Junior
Michael Moroney
Patrick Moloney
27/12/15
Warrnambool
Mac’s Hotel Woodford Cup Profit Share
Darren Weir
Kyle Maskiell
3/10/15
Gunbower
Procal Dairies Gunbower Gold Cup
Leveraction
Daryl Archard
Carryn Londregan
1/1/16
Burrumbeet
Burrumbeet Cup
Treasure Map
Mick Sell
Chelsea Jokic
3/10/15
Murtoa
K&J Baker Cartage Murtoa Cup
Rainbow Storm
Darren Weir
Dean Yendall
16/1/16
Camperdown
Sungold Milk Camperdown Cup
See What I Bring
Symon Wilde
Declan Bates
4/10/15
Bairnsdale
Patties Foods Bairnsdale Cup
Vizhaka
Monica Cid
Jye McNeil
23/1/16
Hanging Rock
Hanging Rock Cup
Laundered
Rick Harrison
Alan Creighton
10/10/15
Manangatang
Agfarm Manangatang Cup
Treasure Map
Mick Sell
Roger Booth
24/1/16
Great Western
Seppelt Salinger Great Western Cup
Scelto
Robbie Laing
James Bates
11/10/15
Cranbourne
TAB Cranbourne Cup
Digitalism
John Sadler
Michael Dee
Peter Moody Damien Oliver
Moe
The WIN Network Moe Cup
Abandoned
Australian Lamb Company Group Colac Gold Cup
Ancient King
15/10/15
14/2/16
Colac
17/10/15
Avoca
Pyrenees Winemakers Avoca Cup
Upbeat
12/3/16
Towong
Costello Rural Life / Plan
Strategic Solutions Towong Cup
Toolango
Brian Cox
Jake Duffy
18/10/15
Seymour
Darley Seymour Cup
Turn Me Loose
Aaron Purcell
Jason Benbow
Murray Baker
Opie Bosson
Ben Allen
James Mc Donald
JH Greenhill West Wimmera
Shire Edenhope Cup
Darren Weir
David Hayes & Tom Dabernig
12/3/16
Edenhope
Killarney Kid
21/10/15
Geelong
Sportingbet Geelong Cup
Almoonqith
Brandon Stockdale
Weirs Supa IGA St Arnaud Cup
Something to Share
Darren Weir
Matthew Allen
TAC Be Races Ready
Stony Creek Cup
Robbie Laing
St Arnaud
13/3/16
Stony Creek
Scelto
24/10/15
25/10/15
Hamilton
CrownBet Hamilton Cup
Rainbow Storm
Darren Weir
Dean Yendall
13/3/16
Euston Club Resort Mildura Cup Gingerboy
Darren Weir
Dean Yendall
25/10/15
Sale
Eastcoast Plumbtec Sale Cup
Evangelist
Tony McEvoy
Daniel Stackhouse
Darren Weir
Dean Yendall
Bendigo
Jayco Bendigo Cup
The Offer
Gai Waterhouse
Michael Walker
Redline Constructions
Geelong St Pat's Cup
Try Four
28/10/15
19/3/16
Geelong
30/10/15
Horsham
Miller Contractors & Plant
Hire 2014 Horsham Cup
Magic Consol
Paul Preusker
Holly McKechnie
20/3/16
Yarra Valley
Jack Hirsch Memorial Yarra Valley Cup Falago Darren Weir
Glen Boss
20/3/16
Tatura
Tatura Cup
Mr Journeyman
Simon Morrish
Regan Bayliss
31/10/15
Mortlake
Moyne Shire Mortlake Cup
Straight Jacket
Symon Wilde
Dean Yendall
26/3/16
Kerang
Kerang Cup
Angelology
Patrick Payne
Tahila Hope
31/10/15
Wycheproof
Elders Mt. Wycheproof Cup
Diamond Duke
Paul Preusker
Holly McKechnie
26/3/16
Warracknabeal
Emmetts/John Deere Warracknabeal Cup Live for Today
Darren Weir
Dean Yendall
4/11/15
NMIT Kyneton Park
XXXX Kyneton Cup
Tristram's Sun
Robbie Laing
Vlad Duric
27/3/16
Stawell
Ecycle Solutions Stawell Gold Cup
Killarney Kid
Darren Weir
Dean Yendall
Wangaratta
Winsec Savings & Loans Wangaratta Cup
Entre Nous
Gerald Egan
Mitchell Aitken
Mildura
7/11/15
Geelong
Sportingbet Ballan Cup
The New Boy
Danny O'Brien
Darren Gauci
27/3/16
8/11/15
NMIT Ararat Park
NMIT Ararat Cup
Something to Share
Darren Weir
Harry Coffey
17/4/16
Terang
Sungold Milk Terang Cup Master Zephyr
Darren Weir
Dean Yendall
14/11/15
Dunkeld
Royal Mail Hotel William
Thomson Dunkeld Cup
Diamond Duke
Paul Preusker
Holly McKechnie
5/5/16
Warrnambool
Sungold Milk Warrnambool Cup Master of Arts
Darren Weir
Dean Yendall
22/5/16
Casterton
Casterton Cup
Sandhill Chief
Sam Turner
Linda Meech
15/11/15
Donald
Michael's Donald Cup
Tonopah
Darren Weir
Dean Yendall
29/5/16
Echuca
Moama Bowling Club Echuca Cup
Leveraction
Darryl Archard
Brooke Sweeney
21/11/15
Sportsbet-Ballarat
Sportsbet.com.au Ballarat Cup
Junoob
Chris Waller
Brad Rawiller
12/6/16
Swan Hill
Murray Downs Swan Hill Cup Day
Minnie Downs
Brian Cox
Mitch Aitken
22/11/15
Kilmore
Wandong Bus and Coach Kilmore Cup Rhythm To Spare
Michael Moroney
Mark Zahra
12/6/16
Apsley
Di Giorgio Family Wines Apsley Cup
Sandhill Chief
Sam Turner
Linda Meech
27/11/15
Wodonga Nordcon LAND Park
Telstra Business Centre Wodonga Cup
Master Reset
Matt Laurie
Jason Benbow
29/11/15
Pakenham
Pakenham Cup
Our Voodoo Prince
Darren Weir
Damien Oliver
6/12/15
Traralgon
Traralgon Cup
Beau Brommel
Luke Oliver
Jye McNeil
13/12/15
Werribee
TAB Werribee Cup
Tall Ship
Darren Weir
Brad Rawiller
26
27
Financial
Reports
FOR THE FINANCIAL
YEAR ENDED
31 JULY 2016
DIRECTORS’ REPORT
30
LEAD AUDITOR’S INDEPENDENCE DECLARATION
33
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
34
STATEMENT OF FINANCIAL POSITION
35
STATEMENT OF CHANGES IN EQUITY
36
STATEMENT OF CASHFLOWS
37
NOTES TO THE FINANCIAL STATEMENTS
38
DIRECTORS’ DECLARATION
55
INDEPENDENT AUDITOR’S REPORT
56
MOE
28
29
DIRECTORS’
REPORT
FOR THE FINANCIAL
YEAR ENDED
31 JULY 2016
The Directors of Country Racing Victoria Ltd
(“CRV” or “the Company”) submit herewith the
annual financial report of CRV for the financial
year ended 31 July 2016, and the audit report
thereon. In order to comply with the provisions of
the Corporations Act 2001, the directors report as
follows:
The names of the Directors of CRV at any time
during or since the end of the financial year are as
follows
Lance McMillan
(appointed 8 December 2006)
Lance McMillan is a former Chairman and
Committee member of the Moe Racing Club.
Neil McRae
(appointed 3 February 2005)
Neil McRae is a former President, Treasurer, and
Committee Member of Echuca Racing Club.
Charles Armytage
(appointed 3 February 2005)
Charles Armytage is a former Committee Member
of the Hamilton Racing Club.
Brian Dougherty
(appointed 3 February 2005, resigned 9
November 2015)
Brian Dougherty is a Life Member and a former
Treasurer and Committee Member of the Geelong
Racing Club.
Simon Cox
(appointed 13 December 2007)
Simon Cox holds a Bachelor of Economics, Master
of Business Administration and is a Member and
Graduate of the Australian Institute of Company
Directors. He is a former Committee Member and
President of the Ballan Jockey Club.
30
Dr Campbell McKellar
(appointed 13 December 2007)
Campbell McKellar holds a Bachelor of Vet
Science with Honours and is a former Committee
member and Chairman of the Ballarat Turf Club.
Gerard O’Brien
(appointed 9 December 2008)
Gerard O’Brien is an Associate of the Australian
Society of CPAs and a Life Member and former
Committee member of the Kyneton District Racing
Club.
Peter Crowe
(appointed 30 November 2008, resigned
9 May 2016)
Peter Crowe is a former Committee member and
President of the Seymour Racing Club.
Victoria Armstrong
(appointed 30 November 2011)
Victoria Armstrong holds a Bachelor of Applied
Science in Podiatry and is a former Committee
member of the Ballarat Turf Club.
Briga Fliedner
(appointed 16 May 2016)
Briga Fliedner is a former Committee Member of
the Bendigo Jockey
Company Secretary
Scott Whiteman
Chief Executive Officer, commenced in May 2006,
having previously held the position of CEO at
the Gold Coast Turf Club since 1998. Scott has
attained over 25 years of experience within the
Australian thoroughbred racing industry.
Principal Activities
CRV’s principal activities during the course
of the financial year were the administration,
management, planning and development of nonmetropolitan thoroughbred racing in Victoria.
Objectives
CRV is established with the objectives to
administer the development of non-metropolitan
thoroughbred racing in Victoria having regard
for the needs and aspirations of all Members and
Stakeholders in the successful conduct of Victorian
country thoroughbred racing.
• Protect and promote the interests of
thoroughbred racing and the interests of all
and any Member organisations
• Ensure it promotes efficiency in Victorian
country thoroughbred racing and allows it to
meet its objectives
• Ensure that Victorian thoroughbred racing
meets its social obligations to Stakeholders
and the communities in which its members
conduct race meetings
• Foster excellent service to patrons, punters
and other customers
• Foster Victorian country thoroughbred
racing as a centre of racing excellence
Dividends
Under the Company’s constitution no dividends
may be declared or paid.
Review of Operations
The majority of the revenue received by the
Company is through the Industry Joint Venture
and allocated as a Priority Grant from Racing
Victoria and funds the marketing program and
administration costs. The net operating profit of
the Company for the 12 months to 31 July 2016
was $515,911, compared to a net operating loss of
$1,152,709 for the prior 12 months.
Changes in State of Affairs
In the opinion of the Directors, there was no significant change in the state
of affairs of CRV other than as referred to in the financial statements or notes
thereto.
Subsequent Events
There has not been any matter or circumstance occurring subsequent to the
end of the financial year that has 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 other than that
referred to in the financial statements or notes thereto.
Environmental Regulation
The Company is not subject to any significant environmental laws and
regulations under State or Federal legislation. However, the Directors believe
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.
Future Developments
Disclosure of information regarding likely developments in the operations
of the Company in future financial years and the expected results of those
operations is likely to result in unreasonable prejudice to the Company.
Accordingly, this information has not been included in this report.
Indemnification of Officers and Auditors
During the financial year, the Company paid a premium in respect of a
contract insuring the directors, officers and employees of the Company
against a liability incurred as such director, officer or employee to the extent
permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium. The
Company has not otherwise, during or since the financial year, indemnified
or agreed to indemnify an officer or auditor of the Company against a liability
incurred as such an officer or auditor.
31
DIRECTORS’
REPORT
Directors’ Meetings
The following table sets out the number of directors’ meetings (including
meetings of committees of directors) held during the financial year and the
number of meetings attended by each director (while they were a director
or committee member). During the financial year, 14 Board meetings and 4
Racing Infrastructure Joint RVL / CRV Sub Committee meetings were held.
BOARD OF DIRECTORS
RACING
INFRASTRUCTURE RVL/
CRV SUB COMMITTEE
DIRECTORS
HELD
ATTENDED
HELD
ATTENDED
Mr L. McMillan
14
14
4
4
Mr N. McRae
14
14
4
4
Mr C. Armytage
14
14
4
4
Mr B. Dougherty
3
3
––
––
Mrs B. Fliedner
3
2
––
––
Mr S. Cox
14
13
––
––
Dr C. McKellar
14
11
4
3
Mr G. O’Brien
14
12
––
––
Mr P. Crowe
11
11
3
2
Ms V. Armstrong
14
8
––
––
Lead Auditor’s Independence Declaration
The lead auditor’s independence declaration is included on page 33 and
forms part of the directors’ report.
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To: the directors of Country Racing Victoria Ltd
I declare that, to the best of my knowledge and belief, in
relation to the audit for the year ended 31 July 2016, there
have been:
( i ) no contraventions of the auditor independence
requirements as set out in the Corporations Act 2001 in
relation to the audit; and
( ii) no contraventions of any applicable code of
professional conduct in relation to the audit.
KPMG
Dana Bentley
Partner
Melbourne
3 October 2016
Signed in accordance with a resolution of the directors made pursuant to
s.298 (2) of the Corporations Act 2001.
On behalf of the Directors
L McMillian
Director
Melbourne, 3 October 2016
32
33
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED 31 JULY 2016
STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2016
NOTES2016
2015
REVENUE($)
($)
RVL Funding Contribution
641,022
643,993
RVL Priority Grant
5,096,864
5,028,704
Interest — Finance Income
7
972,759
720,212
Sky Channel International
-
2,749,249
3
516,266
472,936
Sponsorship 2,264,893
1,440,284
TOTAL INCOME
9,491,804
11,055,378
Sundry Income
Picnic Services
(43,011)
(38,728)
Sky Channel International Rights
-
(2,749,249)
Compensation Payments
(41,224)
(30,000)
Sponsorship Distribution
(269,126)
(193,676)
(21,838)
(399,214) (3,033,491)
OTHER EXPENSES
Administration Costs
4
Operating Costs
5
(985,435)
(914,360)
Marketing and Promotions
6
(4,072,988)
(2,965,992)
Interest & Bank Charges
(2,554)
Depreciation
(2,848,199)
11(219,753)
(2,963,104)
(7,453)
(229,187)
(8,128,929)(7,080,096)
TOTAL EXPENDITURE(8,528,143)(10,113,587)
Impairment of TVN Investment and Liabilities Refunded/(Paid)
10(a)
41,250
Write-off of TVN Investment reclassified from ARR to profit & loss
10(a)
-
3,625,000
CRV’s share of TGG’s (Loss) / Profit by Equity Accounting
10(c)
(489,000)
(94,500)
(LOSS) / PROFIT FOR THE YEAR BEFORE TAX
515,911
(1,152,709)
-
-
TAX EXPENSE
2
(5,625,000)
(LOSS) / PROFIT FOR THE YEAR AFTER TAX
515,911
(1,152,709)
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Actuarial Gains/(Losses) on Defined Benefit Plan
19
(68,602)
NOTES 2016
CURRENT ASSETS ($) 2015
($) 3,477,164
4,006,934
Trade and Other Receivables
1,273,123
2,437,451 8
548,745
548,594
5,299,032
6,992,979 NON-CURRENT ASSETS Payments to Clubs:
(45,853)
Cash and Cash Equivalents
Prepayments
TOTAL CURRENT ASSETS
EXPENDITURE
Capital Grants Receivables
9 10,740,649
7,815,863
Defined Benefit Fund Plan Assets
19
196,714
Investments
10
1,001
260,753
1,001 Property, Plant & Equipment
11
546,010
576,201
Intangible Assets
12
381,300 381,300 TOTAL NON-CURRENT ASSETS
11,865,674 9,035,118
TOTAL ASSETS
17,164,706
16,028,097
CURRENT LIABILITIES Trade and Other Payables
13
789,160
Provisions - Employee Benefits
14
603,096
10(c)
831,000
2,223,256
TGG Liability - CRV’s share of the loss
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
457,503 342,000 1,480,187 20,247
74,016 20,247
74,016 TOTAL LIABILITIES
2,243,503
1,554,203 NET ASSETS
14,921,203
14,473,894
Provisions - Employee Benefits
TOTAL NON-CURRENT LIABILITIES
14
680,684 ACCUMULATED FUNDS Reserves
15 6,850,000
Undistributed Funds
16 7,555,292 (Loss) /Profit for the year
16 515,911
TOTAL ACCUMULATED FUNDS
14,921,203
6,850,000 8,776,603
(1,152,709) 14,473,894
The notes on pages 38 - 53 are an integral part of these financial statements.
35,411
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
447,309(1,117,298)
The notes on pages 38 - 53 are an integral part of these financial statements.
34
35
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED 31 JULY 2016
STATEMENT OF CASH FLOWS
FOR THE FINANCIAL YEAR ENDED 31 JULY 2016
UNDISTRIBUTED
FUNDS
GENERAL
CONTINGENCY
RESERVE
ASSET
REVALUATION
RESERVE
GAMING
RESERVE
TOTAL
($)
($)
($)
($)
($)
Balance as at
31 July 2014
Total comprehensive
income for the year
8,741,192
650,000
3,625,000
INFLOWS / (OUTFLOWS)
20162015
CASH FLOWS FROM OPERATING ACTIVITIES
6,200,000
Actuarial Gain on
Defined Benefit Plan
-
19,216,192
3,630,963
RVL Priority Grant
5,600,038
5,516,188
705,123
3,732,565
Other RVL Distributions
Finance Cash Receipts
35,411
-
Write off of TVN
investment reclassified
to profit and loss
-
-
Balance as at
31 July 2015
Profit for the year
Actuarial Loss on
Defined Benefit Plan
Total comprehensive
income for the year
(1,152,709)
Net Payments to RVL/Clubs
-
-
35,411
Bank Charges
581,668
75,928
197,625
612,421
712,534
(144,255)
(4,281,575)
(8,856,132)
(7,096,260)
(2,554)
(7,454)
-
-
(1,117,298)
Net cash from/(used in) operating activities
1,621,532
(644,709)
Cash Flows from Investing Activities
(3,625,000)
-
(3,625,000)
Reimbursement / (payment) for settlement of share in TVN
-
(650,000)
-
650,000
-
Payments for Plant and Equipment
Proceeds from disposal of Plant and Equipment
41,250
(500,000)
(233,754)
(33,803)
69,157
60,320
-
(650,000)
(3,625,000)
650,000
(3,625,000)
Net cash (used in) investing activities
(123,347)
(473,483)
7,623,894 - - 6,850,000 14,473,894
515,911
-
-
-
515,911
(68,602)
-
-
-
(68,602)
Cash Flows from Financing Activities
Proceeds from Club / TVN / RVL Loans Repaid
Amount Advanced to RVL / Clubs / TGG
44,317
30,460
(2,072,272)
(128,737)
Net cash from/(used in) financing activities
(2,027,955)
(98,277)
447,309
-
-
-
447,309
Net decrease in cash and cash equivalents
(529,770)
(1,216,469)
Transfers to/(from)
Reserves
-
Transactions with
Members, recorded
directly in equity
-
Balances as at
31 July 2016
-
(1,117,298)
Transactions with
Members, recorded
directly in equity
-
Administration & Other Expenses
Total comprehensive
income for the year
Transfers to/(from)
Reserves
36
(1,152,709)
($)
Receipts from Sponsors
Other Income
Loss for the year
($)
-
-
-
-
Cash and cash equivalents at 1 August
4,006,934
5,223,404
-
-
-
-
Cash and cash equivalents at 31 July
3,477,164
4,006,934
8,071,203
-
The notes on pages 38 - 53 are an integral part of these financial statements.
-
6,850,000
14,921,203
The notes on pages 38 - 53 are an integral part of these financial statements.
37
NOTES TO THE FINANCIAL STATEMENTS
NOTECONTENTS
1
SIGNIFICANT ACCOUNTING POLICIES
2
INCOME TAX
3
SUNDRY INCOME
4
ADMINISTRATION COSTS
5
OPERATING COSTS
6
MARKETING AND PROMOTION EXPENSES
7
FINANCE INCOME
8
TRADE AND OTHER RECEIVABLES
9
NON CURRENT RECEIVABLES
10INVESTMENTS
11
PLANT AND EQUIPMENT
12
INTANGIBLE ASSETS
13
TRADE AND OTHER PAYABLES
14
PROVISIONS FOR EMPLOYEE BENEFITS
15RESERVES
38
16
UNDISTRIBUTED FUNDS
17
RELATED PARTIES
18
KEY MANAGEMENT PERSONNEL COMPENSATION
19
DEFINED BENEFIT FUND PLAN ASSETS
20
CONTINGENT LIABILITIES
21
SUBSEQUENT EVENTS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 JULY 2016
CRV ACTIVITIES
Funds received by CRV from its share of monies
distributed to the Thoroughbred Racing Code are
distributed in accordance with the relative Racing Industry
Agreements.
CRV also provides country clubs with marketing
support, resource support and other specialised
programs.
1. SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The financial statements of CRV (Reduced Disclosure
Regime) are prepared on a not-for-profit basis, for the year
ended 31 July 2016. The financial statements comprise the
Company and its interests in associates.
The following significant accounting policies have
been adopted in the preparation and presentation of the
financial report:
(a) Statement of Compliance
In the opinion of the directors, the Company is not
publicly accountable. The financial report of the Company
is a Tier 2 general purpose financial report that has been
prepared in accordance with Australian Accounting
Standards – Reduced Disclosure Requirements adopted
by the Australian Accounting Standards Board (AASB) and
the Corporations Act 2001. These financial statements
comply with Australian Accounting Standards – Reduced
Disclosure Requirements.
The Company has early adopted the amendments
to AASB 127 and has applied equity accounting to its
financial statements in the current and prior period.
The financial statements were authorised for issue by
the directors on the 3 October 2016.
(b) Basis of Preparation
The financial report has been prepared on the basis
of historical cost, except for the fair value of certain noncurrent assets and financial instruments as described in the
notes. Cost is based on the fair values of the consideration
given in exchange for assets.
The company has early adopted the amendments to
IAS 127 and has applied equity accounting to its financial
statements in the current and prior period.
All amounts are presented in Australian dollars which is
the Company’s functional currency, unless otherwise noted.
(c) Use of Estimates and Judgements
The preparation of financial statements in conformity
with AASBs requires management to make judgements,
estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are
recognised prospectively.
Information about assumptions and estimation
uncertainties that have a significant risk of resulting in
a material adjustment within the next financial year are
included in the following notes:
•
note [10] – other financial assets
•
note [19] – defined benefit superannuation plan
(d) Revenue
Revenue is recognised on an accruals basis at the fair
value of consideration received. The relevant contractual
agreements form the basis for measuring and reporting
this revenue over the financial year.
CRV’s main sources of revenue are the Racing
Victoria Priority Grant and Sponsorship income. These
distributions are received in accordance with the relative
Racing Industry Agreements and revenue is recognised at
the time CRV has fulfilled its obligations.
(e) Provisions
Provisions are recognised when CRV has a present
obligation (legal or constructive) as a result of a past
event, it is probable that CRV will be required to settle the
obligation, and a reliable estimate can be made of the
amount of the obligation.
The amount recognised as a provision is the best
estimate of the consideration required to settle the present
obligation at reporting date, taking into account the risks
and uncertainties surrounding the obligation. Where a
provision is measured using the cash flows estimated to
settle the present obligation, its carrying amount is the
present value of those cash flows.
When some or all of the economic benefits required
to settle a provision are expected to be recovered from a
third party, the receivable is recognised as an asset if it is
virtually certain that reimbursement will be received and
the amount of the receivable can be measured reliably.
39
NOTES TO THE
FINANCIAL
STATEMENTS
(cont...)
(f) Employee Benefits
Short term employee benefits
Short-term employee benefits are expensed as the
related service is provided. A liability is recognised for
the amount expected to be paid if the Company has a
present legal or constructive obligation to pay this amount
as a result of past service provided by the employee and
the obligation can be estimated reliably. A liability is
recognised for benefits accruing to employees in respect
of wages and salaries, annual leave and long service leave,
when it is probable that settlement will be required and is
capable of being measured reliably.
Liabilities recognised in respect of employee benefits
expected to be settled within 12 months, are measured at
their nominal values using the remuneration rate expected
to apply at the time of settlement.
Liabilities recognised in respect of employee benefits
which are not expected to be settled within 12 months are
measured as the present value of the estimated future cash
outflows to be made by the entity in respect of services
provided by employees up to the reporting date.
Defined contribution plans
Contributions to defined contribution superannuation
plans are expensed when incurred.Obligations for
contributions to defined contribution plans are expensed
as the related service is provided. Prepaid contributions
are recognised as an asset to the extent that a cash refund
or a reduction in future payments is available.
Other long term employee benefits
The Company’s net obligation in respect of longterm employee benefits is the amount of future benefit
that employees have earned in return for their service in
the current and prior periods. That benefit is discounted
to determine its present value. Remeasurements are
recognised in profit or loss in the period in which they
arise.
Defined benefit plans
40
rate risk and market (investment) risk.
The Company’s net obligation in respect of the
defined benefit plan is calculated by estimating the
amount of future benefit the employee has earned in the
current and prior periods, discounting that amount and
deducting the fair value of any plan assets.
The calculation of defined benefit obligations is
performed annually by a qualified actuary using the
projected unit credit method. When the calculation results
in a potential asset for the Company, the recognised
asset is limited to the present value of economic benefits
available in the form of any future refunds from the plan or
reductions in future contributions to the plan. To calculate
the present value of economic benefits, consideration is
given to any applicable minimum funding requirements.
Remeasurements of the net defined benefit liability,
which comprise actuarial gains and losses, the return on
plan assets (excluding interest) and the effect of the asset
ceiling (excluding interest), are recognised immediately
in OCI. The Company determines the net interest income
on the net defined benefit asset for the period by applying
the discount rate used to measure the defined benefit
obligation at the beginning of the annual period to the
then-net defined benefit asset, taking into account any
changes in the net defined benefit asset during the period
as a result of contributions and benefit payments. Net
interest expense and other expenses related to defined
benefit plans are recognised in profit and loss.
When the benefits of a plan are changed or when
a plan is curtailed, the resulting change in benefit that
relates to past service or the gain or loss on curtailment
is recognised immediately in profit or loss. The Company
recognises gains and losses on the settlement of a defined
benefit plan when the settlement occurs.
(g) Financial Instruments
The Company classifies non-derivative financial assets
into the following categories: available for sale and loans
and receivables. The Company classifies non-derivative
financial liabilities into the other financial liabilities
category.
Non-derivative financial assets and financial liabilities
The defined benefit plans are administered by a
single pension fund that is legally separated from the
Company. The board of the pension fund is required by
law to act in the best interests of the plan participants and
is responsible for setting certain policies (e.g. investment,
contribution and indexation policies) of the fund.
The Company initially recognises loans and
receivables and debt securities issued on the date when
they are originated. All other financial assets and financial
liabilities are initially recognised on the trade date.
These defined benefit plans expose the Company to
actuarial risks, such as longevity risk, currency risk, interest
The Company derecognises a financial asset when the
contractual rights to the cash flows from the asset expires,
- recognition and derecognition
or it transfers the rights to receive the contractual rights
to receive the contractual cash flows in a transaction in
which substantially all the risks and rewards of ownership
of the financial asset are transferred, or it neither transfers
nor retains substantially all of the risks and rewards of
ownership and does not retain control over the transferred
asset. Any interest in such derecognised financial assets
that is created or retained by the Company is recognised
as a separate asset or liability.
The Company derecognises a financial liability when
its contractual obligations are discharged or cancelled, or
expire.
Financial assets and financial liabilities are offset and
the net amount presented in the statement of financial
position when, and only when, the Company has a legal
right to offset the amounts and intends either to settle the
on a net basis or to realise the asset and settle the liability
simultaneously.
Non-derivative financial assets – measurement
Available-for-sale financial assets
Investments held by CRV are classified as being
available-for-sale and are stated at fair value. Fair value is
determined in the manner described in note 10. Gains and
losses arising from changes in fair value are recognised
directly in the revaluation reserve, with the exception
of impairment of assets, which are recognised directly
in profit and loss. Where the investment is disposed of
or is determined to be impaired, the cumulative gain or
loss previously recognised in the revaluation reserve is
included in profit or loss for the period.
Loans and receivables
Trade receivables, loans, and other receivables are
initially measured at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, they
are measured at amortised cost using the effective interest
method.
Debt and equity instruments
Debt and equity instruments are classified as either
liabilities or as equity in accordance with the substance of
the contractual arrangement.
Non-derivative financial liabilities – measurement
Borrowings and trade and other payables, are
recorded initially at fair value, net of transaction costs.
Subsequent to initial recognition, borrowings are
measured at amortised cost with any difference between
the initial recognised amount and the redemption value
being recognised in profit or loss over the period of the
borrowing using the effective interest rate method.
Trade payables and other payables are recognised
when CRV becomes obliged to make payments resulting
from the purchase of goods and services.
(h) Intangible Assets
Intangible assets acquired separately are recorded at
cost. Subsequent to initial recognition, intangible assets
are recognised at cost less accumulated impairment
losses. Refer to note 12 for details of the Intangible assets.
Subsequent expenditure is capitalised only when it
increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure,
including expenditure on internally generated goodwill
and brands, is recognised in profit or loss as incurred.
(i) Goods and Services Tax
Revenues, expenses and assets are recognised net of the
amount of goods and services tax (GST), except:
I. where the amount of GST incurred is not recoverable
from the taxation authority, it is recognised as part of
the cost of acquisition of an asset or as part of an item of
expense; or
II. for receivables and payables which are recognised
inclusive of GST.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables.
Cash flows are included in the Cash Flow Statement
on a gross basis. The GST component of cash flows arising
from investing and financing activities which is recoverable
from, or payable to, the taxation authority is classified as
operating cash flows.
(j) Plant and Equipment
Items of property, plant and equipment are measured
at cost less accumulated depreciation and accumulated
impairment losses. Any gains or losses on disposal of an
item of property, plant and equipment (calculated as the
difference between the net proceeds from disposal and
the carrying amount of the item) is recognised in profit or
loss.
Depreciation is calculated to write off the cost of
property, plant and equipment less their estimated
residual values using the straight-line basis over their
estimated useful lives, and is generally recognised in profit
or loss. Leased assets are depreciated over the shorter of
the lease term and their useful lives unless it is reasonably
certain that the Group will obtain ownership by the end of
the lease term.
41
NOTES TO THE
FINANCIAL
STATEMENTS
(cont...)
The following estimated useful lives are used in the
calculation of depreciation in the current and prior period:
Plant & Equipment 5 – 10 years
Fixtures & Fittings 3 – 10 years
Office Equipment 4 – 5 years
Mobile Facilities 3 – 5 years
Depreciation methods, useful lives and residual
values are reviewed at each reporting date and adjusted if
appropriate.
(k) Impairment
Non-derivative financial assets
Financial assets not classified as fair value through
profit or loss, including an interest in an equity accounted
investee, are assessed at each reporting date to determine
whether there is objective evidence that it is impaired.
Objective evidence that financial assets are
impaired can include default or delinquency by a debtor,
restructuring of an amount due to the Company on
terms that the Company would not consider otherwise,
indications that a debtor or issuer will enter bankruptcy
and/or the disappearance of an active market for a
security. In addition, for an investment in an equity security,
a significant or prolonged decline in its fair value below its
cost is objective evidence of impairment.
Financial assets measured at amortised cost
The Company considers evidence of impairment for
financial assets measured at both a specific asset and
collective level. All individually significant assets are
assessed for specific impairment. Those found not to be
impaired are then collectively assessed for any impairment
that has been incurred but not yet individually identified.
Assets that are not individually significant are collectively
assessed for impairment. Collective assessment is
carried out by grouping together assets with similar risk
characteristics.
In assessing collective impairment the Company uses
historical trends of the probability of default, timing of
recoveries and the amount of loss incurred, adjusted for
management’s judgement as to whether current economic
and credit conditions are such that the actual losses are
likely to be greater or less than suggested by historical
trends.
An impairment loss in respect of a financial asset
measured at amortised cost is calculated as the difference
between its carrying amount and the present value of
the estimated future cash flows discounted at the asset’s
42
original effective interest rate. Losses are recognised in
profit or loss and reflected in an allowance account against
receivables. Interest on the impaired asset continues to be
recognised through the unwinding of the discount. When
a subsequent event causes the amount of impairment loss
to decrease, the decrease in impairment loss is reversed
through profit or loss.
Available-for-sale financial assets
Impairment losses on available-for-sale financial assets
are recognised by reclassifying the losses accumulated
in the fair value reserve in equity, to profit or loss. The
cumulative loss that is reclassified from equity to profit or
loss is the difference between the acquisition cost, net
of any principal repayment and amortisation, and the
current fair value, less any impairment loss previously
recognised in profit or loss. Changes in impairment
provisions attributable to application of the effective
interest method are reflected as a component of interest
income. If, in a subsequent period, the fair value of an
impaired available-for-sale debt security increases and the
increase can be related objectively to an event occurring
after the impairment loss was recognised in profit or loss,
then the impairment loss is reversed, with the amount
of the reversal recognised in profit or loss. However,
any subsequent recovery in the fair value of an impaired
available-for-sale equity security is recognised in other
comprehensive income.
Equity-accounted investees
An impairment loss in respect of an equity-accounted
investee is measured by comparing the recoverable
amount of the investment with its carrying amount. An
impairment loss is recognised in profit or loss, and is
reversed if there has been a favourable change in the
estimates used to determine the recoverable amount.
Non-financial assets
At each reporting date, the Company reviews the
carrying amounts of its non-financial assets to determine
whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount
is estimated. Indefinite life intangible assets are tested
annually for impairment. Goodwill is tested annually for
impairment.
For impairment testing, assets are grouped together
into the smallest group of assets that generates cash
inflows from continuing use that are largely independent
of the cash inflows of other assets or CGUs. The
43
NOTES TO THE
FINANCIAL
STATEMENTS
(cont...)
recoverable amount of an asset or CGU is the greater of its
value in use and its fair value less costs to sell. Value in use
is based on the estimated future cash flows, discounted
to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of
money and the risks specific to the asset or CGU.
An impairment loss is recognised if the carrying
amount of an asset or CGU exceeds its recoverable
amount.
Impairment losses are recognised in profit or loss.
They are allocated first to reduce the carrying amount of
any goodwill allocated to the CGU, and then to reduce
the carrying amounts of the other assets in the CGU, on a
pro rata basis. An impairment loss is reversed only to the
extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss
had been recognised.
(l) Finance Income
Finance income comprises interest income on funds
invested (including available-for-sale financial assets
and loans receivable), gains on the disposal of availablefor-sale financial assets and changes in the fair value of
financial assets at fair value through profit or loss. Interest
income is recognised as it accrues in profit or loss, using
the effective interest method.
(m) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and at
financial institutions that have maturities of less than
3 months.
(n) Investments in Equity-Accounted Investees
Associates are those entities in which the Company
has significant influence, but not control or joint control,
over the financial and operating policies. Significant
influence is presumed to exist when the Company holds
between 20 and 50 percent of the voting power of
another entity. Investments in associates are accounted
for using the equity method (equity-accounted investees)
and are initially recognised at cost. The cost of investment
includes transaction costs.
44
The financial statements include the Company’s share
of the profit or loss and other comprehensive income of
equity-accounted investees, after adjustments to align
the accounting policies with those of the Company,
from the date that significant influence or joint control
commences until the date that significant influence or
joint control ceases. When the Company’s share of losses
exceeds its interest in an equity-accounted investee, the
carrying amount of that interest, including any long-term
investments that form part thereof, is reduced to zero, and
the recognition of further losses is discontinued except
to the extent that the Company has an obligation or has
made payments on behalf of the investee.
(o) New standards and interpretations not
yet adopted
A number of new standards, amendments to
standards and interpretations are effective for annual
periods beginning after 1 August 2015, and have not been
applied in preparing these financial statements. Those
which may be relevant to the Company are set out below.
The Company does not plan to adopt these standards
early.
AASB 9 Financial Instruments (2013), AASB 9 Financial
Instruments (2010) and AASB 9 Financial Instruments
(2009) (together AASB 9)
AASB 9 (2009) introduces new requirements for
the classification and measurement of financial assets.
Under AASB 9 (2009), financial assets are classified and
measured based on the business model in which they are
held and the characteristics of their contractual cash flows.
AASB 9 (2010) introduces additional changes relating
to financial liabilities. The IASB currently has an active
project to make limited amendments to the classification
and measurement requirements of AASB 9 and add new
requirements to address the impairment of financial assets.
AASB 9 is effective for annual periods beginning on
or after 1 January 2018. The adoption of this standard is
not expected to have a material impact on the Company’s
financial assets, but no impact on the Company’s financial
liabilities.
AASB 15 Revenue from Contracts with Customers
AASB 15 establishes a comprehensive framework
for determining whether, how much and when revenue
is recognised. It replaces existing revenue recognition
guidance, including AASB 118 Revenue, AASB 111
Construction Contracts and IFRIC 13 Customer Loyalty
Programmes.
AASB 15 is effective for annual reporting periods
beginning on or after 1 January 2018. The Company is
assessing the potential impact on its financial statements
resulting from the application of AASB 15.
2. INCOME TAX
CRV is a tax exempt entity under section 50.45 of the Income Tax Assessment Act, 1997.
NOTES2016 2015
3. SUNDRY INCOME($)
CRV Awards Night Income
Defined Benefit Interest recognised
144,770
($)
44,864
19
4,563
6,697
Big Screen/Infovision Income
223,250
252,950
Tote Caravan Hire
96,900
103,950
Gain on disposal / write down of Asset
24,965
-
Other21,818
64,475
516,266
472,936
4. ADMINISTRATION COSTS
Salaries2,026,528
Audit of CRV
1,936,889
26,500
25,750
Audit of Country Racing Clubs
90,810
90,245
Directors Fees and Expenses
200,787
224,523
Loss on disposal of Asset
-
989
Insurance71,565
70,593
Vehicle Expenses
83,038
93,690
Travel Accommodation
27,525
Telephone39,766
59,513
46,792
FBT72,613
47,501
Rent77,362
77,362
Printing and Stationery
24,087
11,851
General119,854
265,170
2,848,199
2,963,104
5. OPERATING COSTS
Country Racing Awards Night
256,646
Big Screen/Infovision
174,036
226,650
190,428
Mobile Facilities
396,710
324,996
Club Assistance 1,750
-
Conference/Workshops -200
Tote Caravan Expenses
105,480
106,936
Picnic Meetings
25,004
54,206
Other Operating Costs
25,809
10,944
985,435
914,360
45
(a) Available for Sale Investments at Fair Value: Investment in TVN
$nil (2015: $nil)
TVN was wound up in 2015 and the full carrying amount of the investments
was written-off in the prior year.
In the current year, CRV received a refund on the net liabilities paid as a result
of the wind up of $41,250.
(b) Investment in Thoroughbred Racing Productions $1 (2015: $1)
CRV together with the Victorian metropolitan race clubs have each acquired
a 25% shareholding in Victorian Thoroughbred Outside Broadcasting Pty
Ltd (trading as Thoroughbred Racing Productions) represented by a funding
commitment of $1 made in July 2008.
NOTES TO THE
FINANCIAL
STATEMENTS
(cont...)
2016
The Company is responsible for all the on-course audio visual production at
2015
all Victorian racetracks.
6. MARKETING & PROMOTION EXPENSES
($)($)
Event Development
4,069,369
2,960,671
Administration and other Marketing Costs
3,619
5,321
4,072,988
2,965,992
(c) Investment in TGG $1,000 (2015: $1,000)
Equity accounted investment share of loss at 30 June 2016 was $831,000
(2015: $342,000).
In the 2016 financial year TGG recorded a loss of $978,000 after tax
including related party loan interest. Prior accumulated losses have resulted
7. FINANCE INCOME
Interest from TGG
896,831
593,012
in negative equity as at 30 June 2016 as expected. As such the Shareholders
Interest from Term Deposits and Other Loans
75,928
127,200
(including CRV) have given an undertaking to provide sufficient financial
720,212
assistance to TGG as and when it is needed to enable TGG to continue its
972,759
The net gain on financial assets at amortised cost is determined as interest revenue on cash and cash equivalents and loans
receivable less any impairment recognised in profit or loss.
operations and fulfil its financial obligations for the next twelve months. The
losses are expected to be recouped in future years.
This investment is recognised via the Equity method of accounting which
8. TRADE AND OTHER RECEIVABLES
Net GST Receivable
Trade Debtors
-
8,525
1,273,124
2,428,926
1,273,1242,437,451
has been adopted in line with AASBs. As such CRV have taken up their share
of TGG’s loss for the year ending 30 June 2016 of $489,000 after tax (2015:
$94,500).
Further details of the transaction are governed by a confidentiality agreement
9. NON CURRENT RECEIVABLES
Loan to Benalla Racing Club - unsecured
Loan to 3UZ - unsecured
Loan to TGG – related party
10. INVESTMENTS 46
-
entered into by all parties.
25,000
-
19,317
10,740,649
7,771,546
10,740,6497,815,863
Investment in TVN (a)
-
-
Investment in TRP (b)
1
1
Investment in TGG (c)
1,000
1,000
1,0011,001
47
NOTES TO THE
FINANCIAL
STATEMENTS
(cont...)
11. PLANT AND EQUIPMENT
2016 2015
12. INTANGIBLE ASSETS
OFFICE
FIXTURES &
FITTINGS
OFFICE
EQUIPMENT
PLANT &
EQUIPMENT
MOBILE
FACILITIES
TOTAL
Gross Carrying Amount
($)
($)
($)
($)
($)
Balance as at 31 July 2014
668,351
129,762
1,094,440
3,699,246
5,591,799
Additions
2,359
-
22,843
8,600
33,802
Disposals
-
-
(89,603)
-
(89,603)
670,710
129,762
1,027,680
3,707,846
5,535,998
-
-
233,754
-
233,754
Balance as at 31 July 2015
Additions
Disposals
Balance as at 31 July 2016
-
-
(140,933)
-
(140,933)
670,710
129,762
1,120,501
3,707,846
5,628,819
(559,740)
(122,264)
(515,740)
(3,561,160)
(4,758,904)
-
-
28,294
-
28,294
(51,535)
(3,016)
(115,058)
(59,578)
(229,187)
(611,275)
(125,280)
(602,504)
(3,620,738)
(4,959,797)
-
-
96,741
-
96,741
(51,716)
(2,369)
(117,606)
(48,062)
(219,753)
(662,991)
(127,649)
(623,369)
(3,668,800)
(5,082,809)
Accumulated Depreciation
Balance as at 31 July 2014
Disposals
Depreciation expense
Balance as at 31 July 2015
Disposals
Depreciation expense
Balance as at 31 July 2016
Net Carrying Amount
Water Rights
59,435
4,482
425,176
87,108
576,201
As at 31 July 2016
7,719
2,113
497,132
39,046
546,010
381,300381,300
CRV owns permanent water entitlements in the Victorian Water Register. These entitlements in the Murray and Goulburn
systems are available for use by clubs operating within these declared water systems. Intangible assets acquired by the
Company are measured at cost less accumulated impairment losses. The intangible asset is assessed at the end of each
reporting period to determine whether there is any indication of impairment. During the year the Company did not impair
its water rights as no impairment indicators were identified (2015: $0). 13. TRADE AND OTHER PAYABLES
Trade Creditors (i)
354,083
396,490
Sundry Creditors (i)
420,277
227,825
14,800
56,369
Deferred Income
789,160680,684
(i) The average credit period on purchases is 22 days. No interest is charged on the trade payables.
14. PROVISIONS FOR EMPLOYEE BENEFITS
Employee Entitlements
The aggregate employee entitlement liability recognised and included in the accounts is as follows:
Provisions for employee entitlements:
Current - Annual and long service leave
Non-Current - Long service leave
603,096
457,503
20,247
74,016
623,343
531,519
15. RESERVES
The creation, application and termination of these reserves is entirely at the discretion
of the Company.
General Contingency Reserve
-
Asset Revaluation Reserve
-
-
6,850,000
6,850,000
Gaming Reserve
As at 31 July 2015
($)($)
-
6,850,0006,850,000
General Contingency Reserve
Balance at beginning of financial year
-
650,000
Transfer to undistributed funds
-
(650,000)
Balance at end of financial year
-
-
The board decided in 2015 that the General Contingency Reserve was no longer required and it was transferred to the Gaming Reserve.
Asset Revaluation Reserve
48
Balance at beginning of financial year
-
3,625,000
Write off of TVN investment
-
(3,625,000)
Balance at end of financial year
--
The asset revaluation reserve related solely to the revaluation of CRV’s Investment in TVN. When TVN was wound up
in January 2015, this reserve was written down to zero against the value of the investment in the statement of financial
position.
49
NOTES TO THE
FINANCIAL
STATEMENTS
(cont...)
20162015
Gaming Reserve
Balance at beginning of financial year
6,850,000
6,200,000
-
650,000
Transfer from General Contingency Reserve
Balance at end of financial year
6,850,0006,850,000
The gaming reserve was created in the event that CRV was able to secure gaming venues to increase non-racing returns on
behalf of country clubs.
16. UNDISTRIBUTED FUNDS
Balance at beginning of financial year
7,623,894
8,741,192
515,911
(68,602)
(1,152,709)
35,411
Profit / (Loss) for the year
Actuarial Gain on Defined Benefit Fund
Balance at end of financial year
8,071,2037,623,894
17. RELATED PARTIES
The following parties are considered to be related parties to CRV:
CRV directors are listed in the Director’s Report. Certain members of the Board participate in the Thoroughbred Racing
Industry via means of ownership of racehorses either individually or through related entities. This involvement is on terms and
conditions no more favourable than other participants in the Thoroughbred Racing Industry.
CRV recognised interest income of $896,831 (2015: $593,012) from its associate TGG and has a loan receivable at 31 July
2016 of $10,740,649 (2015: $7,771,546).
18. KEY MANAGEMENT PERSONNEL COMPENSATION
The aggregate compensation of the directors and the key management personnel of CRV are set out below:
Total 938,617944,360
The prior year aggregate compensation of the directors and Key Management Personnel has been reduced to be
consistent with the current year determination of Key Management Personnel. 19. DEFINED BENEFIT FUND PLAN ASSETS
($)($)
NON CURRENT ASSET
Office holders and other employees
Present value of funded obligations
50
366,847
297,725
Fair value of plan assets – funded
(563,561)
(558,478)
(196,714)(260,753)
51
NOTES TO THE
FINANCIAL
STATEMENTS 19. DEFINED BENEFIT FUND PLAN ASSETS CONT.
(cont...) Movements in the net asset for defined benefit obligations
20. CONTINGENT LIABILITIES
20162015
On the 23rd January 2012 CRV provided a Corporate Guarantee of $600,000 to the ANZ Bank as security for a Yarra
Valley Racing Club loan to assist the funding of the reinstatement of the Thoroughbred Race Track at the Yarra Glen Race
Course Facility. This guarantee covers the full term of the loan. At 31 July 2016, the guarantee has been reduced to $500,000.
recognised in the statement of financial position:
Net asset for the defined benefit obligations as at 1 July
(260,753)
(215,305)
Defined benefit cost recognised in income statement
(2,170)
4,342
Defined benefit gain recognised in other comprehensive income
68,602
(35,411)
Less Employer contributions
(2,393)
(14,379)
(196,714)(260,753)
Reconciliation of the present value of the defined benefit obligation:
Present value for the defined benefit obligations as at 1 July
Current service cost
Interest cost
Actuarial losses arising from experience
Actuarial losses arising from changes in financial assumptions
Member contributions
Benefit and tax paid
Reconciliation of the fair value of the plan assets
Fair value of plan assets at start of the year
Expected interest income
Return on plan assets (excluding interest income)
Employer contributions
Member contributions
Benefit and tax paid
297,725
272,098
6,947
11,039
9,604
9,379
51,469
3,308
1,607
-
959
5,625
(1,464)
(3,724)
At 31 July 2016 the Yarra Valley Racing Club liability outstanding on this loan was $310,354 (2015: $259,916), and the
CRV board are satisfied at 31 July 2016 that the guarantee is not likely to be called upon.
CRV together with Melbourne Racing Club (MRC), have provided a letter of financial support to TGG whereby CRV and
MRC are guaranteeing the liabilities of TGG. Due to the existence of this guarantee, CRV is required to recognise its share of
TGG’s accumulated losses of $831,000 at 31 July 2016 (2015: $342,000), which CRV have recognised as a liability as at 31
July 2016.
21. SUBSEQUENT EVENTS
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.
366,847297,725
558,478
487,403
18,723
16,076
(15,527)
38,719
2,393
14,379
958
5,625
(1,464)
(3,724)
563,561558,478
Actuarial Assumptions
Principal actuarial assumptions at the reporting date
Discount rate
3.1%
4.0%
Future Salary Increases
3.5%
3.5%
Number of active defined benefit members
Weighted average duration of defined benefit plan (period)
1
1
0.5 years
1.0 years
The major categories of plan assets as a percentage of total fund assets are as follows:
52
Growth assets
Australian Shares
47.5%
13.3%
46.9%
15.5%
International shares
29.3%
25.8%
Listed Property
2.7%
3.5%
Direct Property
2.2%
2.1%
Income assets
42.9%
41.1%
Australian fixed interest
Cash
International fixed interest
Other alternative
Total
12.5%
11.5%
17.0%15.3%
13.4%
14.3%
9.6%
12.0%
100%100%
53
Directors’
declaration
In the opinion of the directors of Country Racing Victoria Ltd:
(a) The Company is not publicly accountable;
(b) The financial statements and notes, set out on pages 34 to 56 are in
accordance with the Corporations Act 2001, including:
i) giving a true and fair view of the Company’s financial position as
at 31 July 2016 and of its performance for the financial year ended on
that date; and
ii) complying with Australian Accounting Standards – Reduced
disclosure and the Corporations Regulations 2001; and
(c)
There are reasonable grounds to believe that the Company will be able to
pay its debts as and when they become due and payable.
Signed in accordance with a resolution of directors:
Lance McMillan
Chairman
Neil McRae
Charles Armytage
Briga Fliedner
Campbell McKellar
Simon Cox
Gerard O'Brien
Victoria Armstrong
Melbourne, 3 October 2016
RACING AT PAKENHAM
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55
56
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