2011 REPORT ANNUAL - Racing NSW

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RACING NSW COUNTRY LTD ACN 075 186 873 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2011 NOTE 19: KEY MANAGEMENT PERSONNEL (a) Directors The following persons were directors of the company during the financial year: Mr Bob Pavitt (Chairman) (appointed chairman 26 November 2010) Mr Don Hopkins Mr Michael Kennedy Mr Les Maley Mr Max Walker Mr Rod Watt Mr Michael Inglis (commenced 31 December 2010) Mr Gordon Lindley (retired on 31 December 2010) Other than the Chairman who receives an honorarium of $39,000 pa; (2010:$26,000), directors received no remuneration from the company during the year (2010:Nil). (b) Other key management personnel The following persons also had authority and responsibility for planning, directing and controlling the activities of the company, directly or indirectly during the financial year: Name Position Employer Brian Judd Chief Executive Racing NSW Country Scott Kennedy General Manager – Analytical/Industry Racing NSW Shane Meaney Racing Manager Racing NSW Andrew Small Projects Manager Racing NSW (c) Key management personnel compensation 2011 2010 Short-term employee benefits 22,750 26,000 Total 22,750 26,000 NOTE 20: RELATED PARTY DISCLOSURES Transactions with Other Related Parties During the year ended 30 June 2011, the company engaged in the following transactions with other entities involved in the racing industry: Racingcorp Pty Ltd Received as revenue $39,176,764 (2010: $40,311,204) being the total fees due to the company under the Racing Distribution Agreement, Inter-Code Deed and Thoroughbred Racing Intra-Code Deed. At 30 June 2011 the company had a receivable of $10,828,816 (2010: $8,655,963) from Racingcorp Pty Ltd arising from the Racing Distribution Agreement and Inter-Code Deed and Thoroughbred Racing Intra-Code Deed. Racing NSW Received as revenue $1,065,000 (2010: $1,065,000) as an administration subsidy in accordance with clause 14.9 of the Intra-code Deed. Paid as expenses $487,361 (2010: $473,166) being the employment costs of race stewards employed by Racing NSW who worked on country race meetings, other than Chairmen of Stewards for regional racing associations. Paid as expenses $280,000 (2010: $322,000) being an agreed fee for the provision of administrative services. Paid as expenses $215,767 (2010: $205,729) being for racing services provided through Racing NSW’s agreement with its associate Racing Information Services Australia for the Trainers Services Centre. At 30 June 2011 an amount of $2,808,371 (2010: $4,202,861) was payable to Racing NSW. 36
RACING NSW COUNTRY LTD ACN 075 186 873 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH JUNE, 2011 2011 $ 2010 $ NOTE 21: RISK MANAGEMENT POLICIES AND OBJECTIVES Activities undertaken by the company may expose it to credit risk, economic dependency risk and interest rate risk. The company’s risk management policies and objectives are therefore designed to minimise the potential impacts of these risks on the financial performance of the company where such impacts may be material. The totals for each category of the financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements are as follows: Financial assets Cash and cash equivalents 9 1,372,438 1,318,158 Trade and other receivables 10,11 11,770,016 9,633,201 13,142,454 10,951,359 Financial liabilities Financial liabilities at amortised cost: Trade and other payables 13 4,382,100 5,164,525 4,382,100 5,164,525 Credit risk The company trades only with recognised, credit worthy third parties. Receivable balances are monitored on an ongoing basis with the result that the company’s exposure to bad debts is not significant. The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts of those assets, as disclosed in the Statement of Financial Position and notes to the financial statements. The company has credit risk exposure to Tabcorp Holdings Ltd and Sky Channel Pty Ltd. 2011 $ 2010 $ Racingcorp Pty Ltd 10,828,816 8,655,963 Trade and other receivables 851,200 887,238 Loans to race clubs 90,000 90,000 11,770,016 9,633,201 Objectives and Policies Policies require that Cash at Bank and Term Deposits be placed with major banks. Individual debtors are small in number and assessed as to likely recovery prior to advancing credit. Racing NSW Country's major sources of revenue are from Tabcorp. The company is satified with Tabcorp's credit worthiness given the long term strength of its operation and the fact that its wagering operation is predominatly a cash business. Process for Managing the Risk No changes are made to investment policy without Board approval. Debtors are reviewed on an ongoing basis depending on type of debt. Collectability is assessed on a regular basis. Reporting requirements of Tabcorp to the racing industry. Methods used to Measure the Risk The holdings and performance of Cash at Bank and Term Deposits are reported to the Board. Debtors are reviewed on a regular basis. The Racing Distribution Agreement, Inter-Code Agreement and the Intra-Code Agreement. Economic Dependency Risk The company is dependent on Distributions Pursuant to the Racing Distribution Agreement. This distribution is governed by the NSW Racing Distribution Agreement as entered into by Racingcorp Pty Limited and TAB Limited (Tabcorp Holdings Ltd). Consequently, Racing NSW Country is economically dependent on Tabcorp Holdings Ltd. Borrowings and Interest Risk The company has no borrowings at 30 June 2011; (30 June 2010: Nil) 37
Page 1 and 2: RACINGNSWCOUNTRY 2011ANNUALREPORT
Page 3 and 4: C o n t e n t s Notice of Annual Ge
Page 5 and 6: TOTAL NSW TAB MEETINGS 400 350 300
Page 7 and 8: Mr Bob Pavitt Chairman Consultant R
Page 9 and 10: Prior to government approval a comm
Page 11 and 12: In other compliance issues, the Onl
Page 13 and 14: TRAINER’S PREMIERSHIP Trainer Win
Page 15 and 16: CLASS DIST. WINNER JOCKEY TRAINER A
Page 17 and 18: CLASS DIST. WINNER JOCKEY TRAINER A
Page 19 and 20: Financial year 2010-11 represented
Page 22 and 23: Snapshots from Awards Night 2010-11
Page 24 and 25: RACING NSW COUNTRY LTD ACN 075 186
Page 44 and 45: 44 No. Meetings Total RNSWC Distrib
Page 46 and 47: A p p e n d i x 2 Country Racecours
Page 48: RACINGNSWCOUNTRY L e v e l 7 , 5 1

2011 REPORT ANNUAL - Racing NSW

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