From the 2009 Annual Report...............
Treasurer's Report
On behalf of the Board, I am pleased to present the Club's financial report for the year ended October 31, 2009.
It is pleasing to report that the consolidated entity has recorded a net profit of $1,590,755.
The Club has now recorded profits for the past five consecutive years.
Year Net profit/(loss) '000
2009 1,591
2008 8,010
2007 1,031
2006 949
2005 41
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Importantly, the Club has been able to achieve this significant, sustained increase in profitability, while increasing Football Department expenditure by $4 million between 2005 and 2009.
Year Football dept expenditure ('000)
2009 14,224
2008 13,247
2007 12,000
2006 10,802
2005 10,277
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As at October 31, 2009, the Club has net assets of $10.45 million, which is a significant improvement on previous years.
Year Net assets ('000)
2009 10,449
2008 8,858
2007 848
2006 (183)
2005 (704)
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The Board communicated to members five years ago a clear direction to create a strong, sustainable financial position for the Club to achieve long-term success, both on and off the field. In each of the
past five years, we have taken a significant step towards that objective. This year, the collective efforts of many Richmond people have enabled the Club to raise the necessary capital to start the long-awaited
Punt Road redevelopment, and to commit to a significant investment increase in our football department that is sure to reflect positive returns in the short term. This year's net profit result, along with the investments we have made, again reaffirms the Board and management's commitment to this plan, and the finance and governance principles that were established to support our operations.
The 2009 profit and continued growth in net assets is an excellent result for the Club, particularly given our on-field results this year and the difficult economic conditions that have prevailed. The ability to generate a profit under such circumstances highlights the continued dedication of our members, staff, players, sponsors, coterie members, donors and supporters.
Governance
The Board Audit and Risk Committee operates under a charter approved by the Board. It is the Board's responsibility to ensure an effective internal control framework exists within the entity and that all risks identified are continually reviewed, and mitigating controls implemented, where appropriate, to minimise any potential impact on the on-going operations of the Richmond Football Club. The Committee previously developed a comprehensive risk review, which has been adhered to during the past five years.
In 2009, the Audit and Risk Committee has continued its extensive Risk and Corporate Governance program to ensure the Richmond Football Club maintains the highest possible level of Corporate
Governance in the AFL.
During the year, the Club's Audit and Risk Committee again liaised closely with the AFL's Risk Manager on the significant developments the AFL has undertaken during the past 12 months in the area of
Risk Mitigation for league clubs.
In 2009, the Audit and Risk Committee conducted a review of the following key operational areas.
• Gaming & Licensed Venues
• Occupational Health and Safety
° Training and Match Day Venue
° Player Welfare and Injury Management
• Data Security
• Thorough consideration of issues associated with our redevelopment of Punt Road Oval
• Key Management Orientation
The 2009 Committee comprised Mr R. Dalton (Chairman), Ms P Haines (Director), Mr J Matthies (Director) and Mr A Sloman (Committee Advisor). Mr Sloman is a partner at Deloittes Chartered Accountants, specialising in internal Audit and Risk management within the sporting industry. The Club's Chief Financial
Officer, Mr M Stahl, and a representative of PricewaterhouseCoopers (the Club's auditors), were also attendance at appropriate meetings.
Rob Dalton
Treasurer
