October 2018 NSW Masonic Club 19 ANNUAL REPORT 2018 TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2018 ACCOMMODATION REAGH BAR CELLOS LOUNGE BAR TOTAL 2018 TOTAL 2017 $ $ $ $ $ $ Income Sales 3,830,069 100,269 203,552 91,714 4,225,604 4,078,957 Expenses Cost of Sales 180,999 89,351 125,913 70,109 466,372 322,538 Gross Profit 3,649,070 10,918 77,639 21,605 3,759,232 3,756,419 Direct labour expenses 1,148,206 - - 60,390 1,208,596 1,239,656 Direct expenses 153,806 795 21,410 841 176,852 167,042 1,302,012 795 21,410 61,231 1,385,448 1,406,698 Trading profit 2,347,058 10,123 56,229 (39,626) 2,373,784 2,349,721 POKER MACHINE OPERATING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2018 2018 2017 $ $ Net takings 8,861 18,909 Less direct expenses Repairs and maintenance 1,241 2,642 7,620 16,267 Less: Depreciation 188 14,340 Trading profit 7,432 1,927 Report on the Audit of the Financial Report Opinion We have audited the financial report of New South Wales Masonic Club Not for Profit (RDR), (the company), which comprised the statement of financial position as at 30 June 2018, the statement of profit or loss, statement of comprehensive Income, statement of changes in equity, and statement of cash flows for the year then ended, notes to the financial statements comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion, the accompanying financial report of New South Wales Masonic Club Not for Profit (RDR), is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the company’s financial position as at 30 June 2018 and of its financial performance for the year then ended; and (ii) Complying with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Financial Report section of our report. We are independent of the company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of The Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of New South Wales Masonic Club Not for Profit (RDR), would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis of opinion. Information Other than the Financial Report and Auditor’s Report Thereon The directors are responsible for the other information. The other information comprises the information included in the company’s annual report for the year ended 30 June 2018, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Name of Firm: Meagher Howard & Wright Name of Partner: Ken Wright Address: Suite 505, Lvl 5, 55 Grafton St, Bondi Junction NSW 2022 Signed: Dated this 3rd day of October 2018 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF NEW SOUTH WALES MASONIC CLUB