Wangi RSL
the club with a view…
ABN: 20 001 020 784
275 Watkins Road
WANGI WANGI NSW 2267
P 49751433 F 49754372
wangirsl@westnet.com.au
www.wangirsl.com.au
Secretary’s Report
Dear Fellow Members,
As the Honorary Secretary of the Wangi Wangi RSL Sub-Branch Club Limited (Wangi RSL) I am writing
to make my maiden report to you on behalf of the Board of Management, to outline our activities
during 2015 and briefly comment on the 2015 Annual Report. The 2015 Annual Report will be
available for download at www.wangirsl.com.au in the near future or a printed copy will be provided
for pickup at the Club for members who request a copy.
The Annual General Meeting (AGM) is scheduled for 13 March 2016 and I look forward to meeting
up with you at this meeting. For the benefit of all attending members it will assist if questions
requiring an informed answer from the Board are submitted in writing to the Club at least 5 days
prior to the meeting. Questions without notice may lack detail in our responses that either the
enquirer or other members attending the meeting may want to know.
Introduction
At the March 2015 AGM a new President was elected and 3 new faces joined the 4 re-elected Board
members from the previous year(s). The Club has sustained losses over most of the last 10 years
with a loss of $118,000 in the 2014 year. At our second Board meeting in April 2015 the Auditors
presented a quarterly loss of $21,000 to March 31st 2015 which prompted an urgent rethink of how
the Club Ltd was going to survive financially using the same strategies that had produced these
sustained losses.
By dusting off the Business Plan, externally produced for the Board in 2013, there was a simple
strategy to improve the Club’s fortunes but more importantly, how was the strategy to be
implemented and then measured for success? The work required to implement and measure any
strategy meant that additional resources would be needed as the then Secretary Manager was
overloaded with duties, many unrelated to managing.
In July we had the Treasurer resign from the Board and an unrelated senior staff termination. The
appointment of a replacement Board Member that was constitutionally, but not traditionally,
correct saw discontent among some members, however the Board were unanimous in their resolve
to turn the Club’s fortunes around and thus sought specific expertise.
A Club’s success is directly related to the breadth of expertise on a Club Board and I invite members
who have social, technical or financial skills to seriously consider serving on the Board.
At the July Board meeting the second quarter financial results showed a profit, however, by
extracting one-off items in this period the result was flat, but not a loss. It became obvious, by the
replacement bar staff appointment in July, that an even greater workload had been self-imposed on
the Secretary Manager while the Board was actively encouraging the divestment of non-managerial
functions from the Secretary Manager to staff.
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Secretary’s Report Year Ending 30 December 2015
Board Strategy
During August and September the Board unanimously agreed to introduce some short term
structural measures to achieve the following:
1. A decrease in wages expenditure:
a. Align management and staff rosters for the benefit of the club,
b. Multi skilling,
c. Duties equivalent to the level of payment under the Award,
d. Short term strategy only as long term we will require more staff to serve more
customers.
2. Appropriately resource some areas of the operation:
a. A measured update to our poker machine operations through investment in new
machines and evaluation of systems that contribute to staff efficiency,
b. Enter discussions with our caterer, Mark, to review the alignment of the catering
functions with the Club’s objective of “Wangi RSL, the Club with a View…”
c. Develop a maintenance program to improve the Club amenities, particularly the bar
and kitchen facilities.
3. Ensure the financial strength of the Club for the longer term:
a. A management restructure to effectively operate the separate business units
identified by the Board, viz,
i. core operations – bar, gaming & catering,
ii. administration – back office data & financial reporting,
iii. member benefits – targeted entertainment, advertising & communication.
b. Adhere to strict financial controls and all expenditure is justified by cost/benefit
analysis then measured for success or otherwise,
c. Seek our member’s ideas relating to the future of the club,
d. Create a Vision statement and review the Constitution to reflect the vision.
Strategy Progress
The Secretary Manager was reluctant to implement the changes required and after several meetings
she was offered a redundancy package so that the Board strategy could be implemented.
I was then nominated by the Board and accepted the position of Honorary Secretary in October
2015 with the assignment to implement the Board’s strategy and while this is ongoing I would
strongly encourage any member seeking election to the Board to support this strategy.
The changes, particularly those outlined in Strategy 1 above, naturally impacted on staff and during
the final quarter, including 1 January 2016, there were four staff changes associated with rosters,
multiskilling or personal reasons. While these employees were valued for their contribution over
past years, change was inevitable and acceptance of change is a personal issue.
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Secretary’s Report Year Ending 30 December 2015
Similarly we have lost the regular attendance of some valued members that, in my mind, signifies
reluctance to change as I’m sure that their motive is not to contribute to the Club’s failure. Our
challenge is to have them return to enjoy a revitalised version of the “Old Club”.
What can I say about those members who visit regularly and constantly complain about new staff,
the service, etc? Thanks for continuing to support the Club as we strive to rectify the complaints and
make your next visit more enjoyable.
In Strategy 2 Patrons will have noted the purchase of new poker machines in early November and
with the introduction of new machine meter management software we are now measuring the
results of this investment. Further changes will be evaluated based on these results.
Discussions with our Caterer are ongoing and at this stage the status quo has been maintained as a
result of compliments to the kitchen from patrons and the overall workload on Directors dealing
with a few more pressing issues.
In December the Board appointed Angela Sanders as the Operations Manager, responsible for the
duties in Strategy 3(a)(i) and oversee those in 3(a)(ii) above.
Angela has extensive experience in club operations and finance, having accountancy qualifications,
and accepted the challenge with enthusiasm.
The previous Board purchased a Swiftpos club management system which appeared to be a white
elephant in September 2015. With perseverance by a capable volunteer and assistance from a
determined team it is now being aligned to its original capabilities. Stock control procedures have
been implemented, member management improved and income and general reporting redesigned
to add value to financial controls. There is still much more to be done.
Reports relating to the marina extension will be presented at the AGM, suffice to say that
development consent for the project was granted on 6 October 2015. I’m expecting a report from
the current jetty committee regarding a few aspects of the consent that require some significant
decisions. Specifically, the requirement to amalgamate land held by the Sub-Branch and Club Limited
for the marina operation may mean further legal costs to satisfy or modify the consent condition.
I’m extremely interested to hear from Members about their vision for the Club as they will be
considered carefully so that discussions can be started for the future development of the Club.
Financial Report
The annual audited financial report is now available and our Auditors will attend the AGM to answer
questions relating to the finances and governance of the Club.
The report shows a return to a small profit for 2015 and there are signs that operating performance
is improving. Operations provide the cash flow while a Board that spends money on the Club and its
Members prudently and diligently will eventually provide a cash surplus to pay back debt and invest
in the Club’s future, eg the marina extension, Club improvements, etc.
The club profit before tax of $37,552 compares favourably to a loss last year of $118,706,
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Secretary’s Report Year Ending 30 December 2015
EBITDA of 9.3% for the year was slightly below our target of 10% however, the last 3 quarters being
9.5%, 8.0% and 9.3% respectively. The new target for 2016 is 15% requiring a net improvement of
$25,000 per quarter. Achieving this EBITDA will allow us to recommence the repair and maintenance
program that has been neglected over recent years.
The working capital at Dec 2015 is negative $213k compared with negative $168k at Dec 2014 which
is due to the decision to invest in new poker machines. Working capital is a function of current
assets versus current liabilities.
The Board, in conjunction with our Auditors, has changed the way that fireworks donations and
expenses are treated. It is not the Club’s money therefore the bank account now has a
corresponding liability to reflect that fact rather than being reported as income and expense.
As previously mentioned, financial questions should be submitted to the Secretary at least 5 days
prior to the meeting to allow an informed answer for the enquirer.
Opportunities and Challenges
In the coming year the opportunities are:
1. Improving the use of the club facilities for functions, including functions arranged by our
associated clubs,
2. Improving efficiencies in our bar and gaming operations,
3. Broadening the bistro menu options and evaluating the need for café style dining outside of
the current bistro hours,
4. Working co-operatively to bring the marina extension to a shovel-ready project.
And the challenges are:
Upgrading the kitchen and bar areas to a standard acceptable to the Health Inspector, who
is threatening future action, as the promises of the past to complete this work have not
occurred,
2. Investigating the covering of the tiled area in front of the restaurant to enhance outside
dining and prepare a budget for major repairs to the car park,
3. Unravelling the Development Consent for the marina extension and formulating a budget to
complete progressive works.
4. Evaluating our financial position and options to refinance current debt at competitive rates
or future debt/equity structures to meet our needs.
1.
In Appreciation
During the final quarter of 2015 I had exceptional assistance from many concerned club members
and I want to publicly acknowledge a few of these.
Colin Dilworth - for his accounting advice and assistance in advising on a compliant software system
to audit and analyse poker machine operations.
Ross Ahrens - for setting up the point of sale and stock control system on the Swiftpos system.
Swiftpos was installed in February 2015.
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Secretary’s Report Year Ending 30 December 2015
Our employees Natalie and Ursula, who went beyond the call of duty to help me personally with the
back-office duties required prior to opening each day. Nat, with children in tow, turned up regularly
to help while Ursula had a “holiday” for 3 weeks at Wangi Caravan Park so she could assist on a daily
basis. Jamie, Ursula’s husband assisted indirectly by taking on Ursula’s babysitting duties.
Subsequently Karen was employed to lighten the administrative load.
My fellow Directors, who had the resolve to formulate and put the appropriate measures in place to
effectively operate the Club and provide a platform for future financial viability.
Past and present staff for their service over the final quarter of 2015 and to date.
Conclusion
This report briefly outlines the current strategy and progress and I can assure all members that this is
but a scratch on the surface compared with the work that still has to be done.
Commitment and hard work are the essential characteristics of Directors, Management and Staff for
the foreseeable future but I would urge all members to show loyalty to our Club while the results
continue to indicate a viable future.
If you wish to make a comment regarding this report or would like to forward any suggestions to the
Board either by email to wangirsl@westnet.com.au or in writing to Wangi RSL Club, 275 Watkins
Road, WANGI WANGI NSW 2267.
Regards,
Ray
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