Ducati Owners Club of Victoria Incorporated



Ducati Owners Club of Victoria IncorporatedFinancial StatementsFor the year ended 29 February 2020Contents TOC \o "1-1" Contents PAGEREF _Toc41124919 \h 2Committee’s Report PAGEREF _Toc41124920 \h 3Trading Account PAGEREF _Toc41124921 \h 7Income and Expenditure Statement PAGEREF _Toc41124922 \h 8Balance Sheet PAGEREF _Toc41124923 \h 9Notes to the Financial Statements PAGEREF _Toc41124924 \h 10Statement by Members of the Committee PAGEREF _Toc41124925 \h 14Certificate by Members of the Committee PAGEREF _Toc41124926 \h 15Committee’s ReportFor the year ended 29 February 2020Your committee members submit the financial accounts of the Ducati Owners Club of Victoria Incorporated for the financial year ended 29 February mittee MembersThe names of committee members at the end of the financial year were:Brendan Walpole, PresidentLex Villanueva, TreasurerMelanie Reynolds, Vice PresidentRhett Das, SecretaryJoe Ruspandini, Club CaptainRachael Alexander, EditorDaryl Grant, Spare PartsDuring the year, the following people retired as committee members:Neil Larson, PresidentKathie van Vugt, SecretaryGavin Hodge, Club CaptainChris Young, Spare PartsSubsequent to the end of the financial year, but prior to the date of this report Lex Villanueva retired as TreasurerPrincipal ActivitiesThe principal activities of the association during the financial year were: official factory-affiliated Ducati motorcycle club.Significant ChangesNo significant change in the nature of these activities occurred during the year.Operating ResultThe surplus from ordinary activities amounted to:Year ended 28 Feb 2020$Year ended 28 Feb 2019$7692(7,281)Comments on Operating ResultThe headline financial result for FY2020 showed an improvement in revenue and expenses with the major contributors being our major ride events, particularly the inclusion of the Tassie Tiger Hunt.To more fairly compare the results in each financial year, a normalised operating result has been prepared which adjusts the revenue and costs of each major event so that they occur in the period of the event, rather than when the cash is paid or received. The table below shows these conversions, with the FY2019 adjustments the same as was contained in the FY2019 annual report.Major ItemsMembership fees – decreased by 10% in FY2020, driven partly by the increase in membership prices, with membership fees stable but numbers down. Early renewals in February were slightly down from the very high base in 2019 (by a grand total of $470). Membership numbers (and revenue) as at the end of April 2020 are below the previous year, probably caused in part by the lack of events were are able to hold. Overnight rides – were the financial highlight of FY2020. All the overnight rides were well attended. The bi-annual Tassie Tiger Hunt (which the president had to withdraw from because of a stupid snowboarding accident resulting in a shoulder reconstruction ) would have been the pick of the bunch with some new roads and old favourites. But Dargo (which was the only one I actually managed to make it on), Grand Final Weekend and Mini-Turismo were also generally all-round awesome.Insurance – to say we’re not particularly happy with Aon would be an understatement. The main reason we have insurance is to cover certain public liability exposures on rides and track days. After being just a little problematic in 2018, last year saw our track day cover non-existent (for the same premium of course). So we also signed up as an affiliate with Motorcycling Victoria. For that we have to pay an annual fee (included in insurance expense), obtain event permits, and then pay a per rider fee, plus have all riders with an MV/MA licence (these are all included in the event expense). On the plus side, the insurance coverage is much better, as MV includes some injury cover for the participants.Broadford – didn’t exactly go to plan this year. Our December booking was on track, and then some contractor decided that they needed earlier access to start resurfacing works. Then they went and stuffed that up and it had to be basically re-done. During which time there was a bit of an earth tremor, plus some of the equipment being stolen (at least some of which has now been recovered, although I don’t think that included a bunch of training bikes that were nicked). With Broadford cancelling track days left, right and centre, we were holding our breath for the cancellation of our replacement March day (which they’d given to us cheap as an apology for cancelling December). Receive confirmation that we’re all good to be the second guinea pigs on the new surface, and then a week out, we decide to pull the pandemic escape pin (only a few days after we made the rest of the track payment of course). So, the next financial year will include a whole heap of refunds to those who were signed up (which have already been made).Our next day there is in October – you can check the stats, but the likelihood of rain is basically the same then as in December, so no excuses.Phillip Island Fun Days – Two PI days, about two hundred bucks profit. Although for the November day, this did include paying for just about everyone’s MV day licence. We need some streamlining of that process.Obviously our April 2020 booking was cancelled – which was a bit of a disappointment as we had a discount deal for that day – Andrew Fox decided he wanted our previously booked day (I guess that’s what you do when your family owns a track), and as compensation we got a good rate.Merchandise –the club has transitioned to a new merchandise model, where the supplier directly manages sales and inventory, and pays a commission to DOCV. This has been a little slow – I guess there’s only so many red t-shirts one person needs. Remaining inventory was fully written off, but is still for sale (hint, hint)Website expenses – following the major upgrades and improvements last year, this year was just about tinkering and refining, resulting in a large cost reduction. We do have a rather long list of future changes, with the most important (at least in the writer’s personal opinion) facilitating the MV licence process for track days.Bank fees – are reported differently this year. Previously, Paypal fees were recorded directly as a reduction in revenue against each payment, but the new accounting system records full revenue, and then an associated expense bucket. No real changes here, apart from the fact that Paypal removed the discount rate scheme we were getting.Cash balance – at the end of the year, two term deposits were held. Apart from the additions of interest earned on those accounts, no deposits or withdrawals were made.The Year AheadTo put it bluntly, who knows. We managed to run the Mini Turismo and the Missed-Out Turismo before the world closed down, but cancelled two track days, all normal weekend and mid-week rides (not that they make money) and the Queen’s birthday brass monkey ride. With no raffles either, there will be limited income in the immediate future.To address this, printing the club magazine Desmoto has been suspended. As at the date of this report, the club has more than sufficient funds to pay other expenses for the next couple of years, even with no other revenue (“core expenses” are only about $15k per year). Refunds for the Broadford and PI cancellations have been paid, the Broadford track booking for later in the year has been paid, and we’ve covered the 50% deposit for booking PI. When normal operations resume (if not before) the key decision will be whether to resume printing (which does account for the vast majority of membership fees), or to do something else, such as fund other activities or reduce fees. Now there’s a good topic of conversation for the AGM!Signed in accordance with a resolution of the Members of the Committee on: 23rd May 2020Brendan WalpolePresidentTrading AccountFor the year ended 29 February 2020Income and Expenditure StatementFor the year ended 29 February 2020 Balance SheetAs at 29 February 2020Notes to the Financial StatementsFor the year ended 29 February 2020Note 1: Summary of Significant Accounting PoliciesThis financial report is a special purpose financial report prepared in order to satisfy the financial reporting requirements of the Associations Incorporations Act . The committee has determined that the association is not a reporting entity.The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where specifically stated, current valuations of non-current assets.The following significant accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of this financial report.(a) Property, Plant and Equipment (PPE)Leasehold improvements and office equipment are carried at cost less, where applicable, any accumulated depreciation.The depreciable amount of all PPE is depreciated over the useful lives of the assets to the association commencing from the time the asset is held ready for use.Leasehold improvements are amortised over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.(b) Impairment of AssetsAt the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.(c) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less. This also includes the balance in the club’s PayPal account.(d) Revenue and Other IncomeRevenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. For this purpose, deferred consideration is not discounted to present values when recognising revenue.Interest revenue is recognised as received. Dividend revenue is recognised when the right to receive a dividend has been established.Grant and donation income is recognised when the entity obtains control over the funds, which is generally at the time of receipt.All revenue is stated net of the amount of goods and services tax (GST).(e) Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the assets and liabilities statement are shown inclusive of GST.As the club is not required to be registered for GST, as a practical matter this means that no GST is collected on sales, and any GST on purchases is unrecoverable.(f) Deposits and prepaymentsDeposits for major events (such as Phillip Island and Broadford fun days) are recognised as expenses at the time the amount is paid, usually immediately after the contract is signed. If the event is cancelled by the DOCV, then the deposit is unlikely to be recovered, and is therefore recognised as an expense.Note 2: Cash assetsNote 3: ReceivablesApart from $136 of merchandise commissions which were received after balance date, all receivables are trade debtors advertising in Desmoto. All receivables are expected to be recovered.Of the $4,423 Desmoto receivables, only $418 are outstanding from the prior year. Given the current pandemic, we do not expect to be too pushy with trying to recover the Desmoto debts in the short-term.Note 4: InventoriesDuring the year the club transitioned to a new merchandise arrangement where people order directly from the supplier, and DOCV is paid a commission. The only purchases of new stock during the year were so as to have a supply of goods during the Festival of Italian Motorcycles, and t-shirts for the Tassie Tiger Hunt (expensed in the Tiger Hunt Event rather than merchandise). As we are not actively marketing sales of existing holdings, some of which are old, we elected to write-off the remaining inventory (although will seek to sell them as opportunities arise).Note 5: Property, plant and equipment, and depreciationAll plant and equipment was previously fully depreciated in FY2019. No new equipment has been purchased through the year, although it is likely that the 2-valve shim kit (written off in the 2017-2018 financial year) will be replaced in future if there is a need for it.Note 6: Related partiesCommittee members’ interest in contracts: There were no related party transactions during the year, and no conflicts of interest declared by any committee members. Committee members are reimbursed for the cost of hosting meetings, and for any club costs they pay personally (such as where a supplier does not accept bank transfers, and the committee member pays with a personal credit card).During the ordinary course of business, club members or their related parties may enter into contracts with the club. These include Desmoto advertising, where members pay the same rate as other advertisers, and the supply of goods, where other quotes were obtained and the cheapest supplier utilised.Note 7: Events subsequent to reporting dateSince the end of the financial year Victoria entered a “lock-down” due to the COVID-19 pandemic. This has resulted in a number of changes to the club’s operations:General meetings held via video-conference. This has eliminated income from raffles for the time being;Slower membership renewals, as there are no rides being heldCancellation of two track days – at Phillip Island and BroadfordOvernight rides – cancellation of at least the Queen’s birthday weekend ride (Mini-Turismo and the Missed-Out Turismo just scraped in)The reduction in income has necessitated some cost reductions, such as ceasing to print the club magazine Desmoto, which represents (by far) the club’s largest single expense.Whilst it’s a bit of a fool’s errand to try and predict the removal of the current restrictions, we’re hopeful that we’ll be able to revert to “almost” normal activities later in the calendar year – enabling us to hold the two track days we have booked in (Broadford in October, PI in November), and the grand final weekend ride (whether that’s on the date of the actual grand final or on the date that it was meant to be).Statement by Members of the CommitteeFor the year ended 29 February 2020The Committee has determined that the association is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements.In the opinion of the Committee the Income and Expenditure Statement, Statement of Financial Position, and Notes to the Financial Statements:Presents fairly the financial position of Ducati Owners Club of Victoria Incorporated as at 29 February 2020 and its performance for the year ended on that date.At the date of this statement, there are reasonable grounds to believe that the association will be able to pay its debts as and when they fall due.This statement is made in accordance with a resolution of the Committee and is signed for and on behalf of the committee.Dated: 23rd May 2020Brendan WalpolePresidentCertificate by Members of the CommitteeFor the year ended 29 February 2020I, Brendan Walpole, and I, Melanie Reynolds certify that:a. We attended the annual general meeting of the association held on 16th June 2020 [via a Zoom conference call];b. The financial statements for the year ended 29 February 2020 were submitted to the members of the association at its annual general meeting.Dated: 17th June 2020[to be signed after the AGM]Brendan WalpolePresident[to be signed after the AGM]Melanie ReynoldsVice-President ................
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