Review of the Registered Clubs Industry in NSW - Clubs NSW

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7 Improving clubs’ financial reporting and performance benchmarking Box 7.2 Clubs Secure - Greyhound Racing NSW’s standardised financial reporting and performance benchmarking program Greyhound Racing NSW (GRNSW) is the independent body charged with representing, funding and controlling the commercial operations of greyhound racing in NSW. GRNSW uses Clubs Secure – a financial performance benchmarking system – to monitor the operational and financial performance of 39 greyhound racing clubs in NSW. These clubs vary in size from small country clubs with annual revenue of less than $100,000 to large metropolitan clubs with annual revenue in excess of $3.5 million. All greyhound racing clubs in NSW are required to keep a standardised set of management accounts prescribed by GRNSW. Using information from these accounts, clubs are required to enter information into Club Secure – an online reporting tool – that calculates a set of operating and financial measures for each club. These include: five financial measures (for example, working capital ratio, solvency ratio, interest cover ratio) five operational measures specific to the greyhound racing industry (for example, prize money ratio, race day income to race day expenses). Each club receives an immediate report on how they are performing relative to industry benchmarks. These benchmarks vary based on club type (TAB club/non-TAB club) and location (metropolitan/country). Clubs that have performed below the benchmark for three consecutive periods are formally notified by GRNSW and an explanation sought. Clubs may be eligible for further assistance including a more detailed investigation of their performance by GRNSW. TAB clubs are required to enter data monthly while non-TAB clubs are required to enter data quarterly. Results are compared to audited financial statement at the completion of each financial year. GRNSW also assists clubs by: providing training and advice on how to enter financial data and interpret results providing funds, where appropriate, to obtain necessary accounting software and obtain the services of a suitably qualified bookkeeper. 120 IPART Review of the Registered Clubs Industry in NSW
7 Improving clubs’ financial reporting and performance benchmarking Recommendations 20 That the Club Viability Panel be asked to develop and recommend to the Minister for Gaming and Racing a suite of business efficiency and financial viability measures appropriate for clubs with annual gaming machine revenue of less than $5 million, using the measures outlined in Recommendations 18 and 19 as a starting point. 21 Once these measures are approved, that the Registered Clubs Regulation be amended to require: – Clubs with annual gaming machine revenue of between $1 million and $5 million to calculate the full suite of measures on an annual basis. – Clubs with annual gaming machine revenue of less than $1 million to calculate only the ‘whole of business’ measures on an annual basis. – Clubs to provide data on the relevant measures to the Club Viability Panel by the date and in the format specified by the Regulation. 22 That the Club Viability Panel use the data provided by clubs to calculate industry-wide benchmarks for each measure, and segment these benchmarks by club size, type and location to allow clubs to compare their performance with ‘like’ clubs. 7.4 All clubs should be required to calculate a single financial viability measure and submit this data to the Club Viability Panel As Chapter 6 discussed, it is important to consider a range of financial viability measures to obtain an accurate picture of a club’s financial viability. Nevertheless, IPART considers that all clubs should be required to calculate a single financial viability measure on an annual basis, so this data can be used to identify clubs that are at risk of being in financial distress. Those clubs could then be offered assistance to further investigate their financial viability, plus, if necessary, advice and funding to help them improve their financial position. In addition, IPART considers that: the Club Viability Panel should be responsible for analysing the data on clubs’ performance on the single financial viability measure to identify those at risk of being in financial distress, and for approaching these clubs to offer them assistance EBITDARD as a percentage of revenue (EBITDARD%) should be used as the measure of financial viability for this purpose EBITDARD% of less than 15 per cent should be the indicator that a club is at risk of being in financial distress. Review of the Registered Clubs Industry in NSW IPART 121
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Independent Pricing and Regulatory
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© Independent Pricing and Regulato
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Contents 6 Strengthening the financ
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Executive Summary Executive Summary
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Executive Summary estimated the val
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Executive Summary Therefore, IPART
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Executive Summary However, IPART al
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Executive Summary List of Recommend
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Executive Summary 15 Once the stand
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Executive Summary 29 That ClubsNSW
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Executive Summary 46 That ClubsNSW
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Executive Summary 60 That OLGR deve
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1 Introduction 1 Introduction Over
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1 Introduction 1.1.2 Review’s foc
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1 Introduction 1.2 Other reviews an
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1 Introduction 1.3 The structure of
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2 The registered clubs industry in
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3 Understanding the social contribu
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Page 173 and 174: 10 Helping clubs better understand
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10 Helping clubs better understand
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10 Helping clubs better understand
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11 Making it easier for clubs to am
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12 Making it easier for new clubs t
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13 Removing unnecessary regulatory
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14 A framework for a management pla
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A Terms of reference A Terms of ref
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A Terms of reference The proc
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B Terms of reference checklist Term
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C List of submitters, roundtable pa
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D Gambling expenditure and problem
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E IPART’s methodology for recordi
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F ACG’s approach to measuring the
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G ClubsNSW - steps to establishing
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G ClubsNSW - steps to establishing
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Glossary and Abbreviations Glossary
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Review of the Registered Clubs Industry in NSW - Clubs NSW

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