Review of the Registered Clubs Industry in NSW - Clubs NSW

5 Refining the Community Development and Support
Expenditure Scheme
IPART believes a market price measure can avoid the current confusion experienced
by the industry. It will establish a clear, consistent and objective approach through
its simple, straightforward application of easily understood and observed values.
Surplus revenue funding and avoided cost are more complicated and require a
subjective assessment of cash flows and the costs clubs incur.
IPART considers that the CDSE Scheme guidelines should be amended to replace the
reference to actual cost with market value. Additionally, the guidelines should be
enhanced to include a more comprehensive explanation of the in-kind valuation
process, including examples of in-kind CDSE valuations.
Recommendation
10 That the CDSE Scheme guidelines be amended to:
– advise that a market value approach should be used to value the provision of in-kind
CDSE
– include a more comprehensive explanation of in-kind valuation.
5.5 Improving the way clubs report their social contributions
Documenting and reporting on club social contributions would make the task of
identifying and measuring the value of the contributions that clubs make to their
communities easier. 82
A mandatory reporting framework would require all clubs to record, report and
potentially measure the social contributions they make in communities. A
mandatory reporting framework was proposed by NCOSS at the second Sydney
roundtable. 83 However, such an obligation would impose a significant additional
burden on the industry (in particular for smaller clubs). Some case study clubs 84
noted the administrative burden measuring and recording involves and/or the
difficulties associated with the valuation of in-kind contributions.
The benefit provided by mandatory reporting thus needs to be balanced against the
administrative and procedural burden it would create for clubs. While a mandatory
reporting framework would conceivably be acceptable for the largest, strongly
managed clubs with multiple layers of management, smaller clubs may not have the
necessary resources to perform this task.
82 Outside CDSE requirements, clubs traditionally do not measure in-kind contributions. However,
some clubs have begun to record and value them.
83 NCOSS, Sydney roundtable, 7 May 2008, p 43.
84 For example Asquith Bowling and Recreation Club, Club Old Bar and Riverstone-Schofields
Memorial Club.
Review of the Registered Clubs Industry in NSW IPART 83