2017 Annual Report by Alberta Golf

2017 Annual Report

ALBERTA GOLF ASSOCIATION #22, 11410 27 STREET SE CALGARY ALBERTA T2Z 3R6 PHONE 403.236.4616 FAX 403.236.2915 TOLL FREE 1.888.414.4849 INFO@ALBERTAGOLF.ORG ALBERTAGOLF.ORG

Cover Photo Sharmaine Rapisura at the Coal Creek Golf Resort during the 2017 Alberta Junior & Juvenile Championships Inside Cover Photo Team Canada Development Squad member Max Sekulic grits his teeth after impact at the 2017 Alberta Junior & Juvenile Championships. He would go on to claim the title

4% hips 21% ction 10% s & Interest 2% Services 4%

& Grassroots Results ce 5%

By the Numbers

Financial Analysis

2017 Alberta Golf Directory BOARD OF DIRECTORS

STAFF (AS OF JUNE 1, 2017)

GOLF CANADA

PRESIDENT Tom Zariski, Dinosaur Trail

EXECUTIVE DIRECTOR & CEO Phil Berube

DIRECTORS AND GOVERNORS FROM ALBERTA

VICE PRESIDENT Peter Major, Calgary

DIRECTOR, BUSINESS DEVELOPMENT & BRAND Jack Lane

1ST VICE PRESIDENT Leslie Dunning

SECRETARY Tiffany Gordon, Cottonwood

MANAGER, HIGH PERFORMANCE SPORT Randy Robb

TREASURER Bill McNaughton, Glencoe

OFFICE MANAGER Shauna Maisey

PAST PRESIDENT Bob McGinn, Sturgeon Valley PROVINCIAL COUNCIL REPRESENTATIVE Susan MacKinnon, Willow Park DIRECTORS AT LARGE Steven Johnson, Golf Canada Edmonton Lorraine Moster, Golf Canada Edmonton Peter Davies, Pine Hills PRESIDENT - ALBERTA GOLF ASSOCIATION FOUNDATION Tom Zariski, Dinosaur Trail

COORDINATOR, GOLF COURSE SERVICES & COMMUNITY EVENTS Jennifer Davison

GOVERNORS Herb Schlotter Fran Marsden HONORARY LIFE GOVERNORS Thelma Coutts Wayne C. Petersen Karen Rackel, Q.C. Harry Zuzak

COORDINATOR, COMPETITIONS Stephen Wigington FIELD MANAGER, COMPETITIONS & COMMUNITY EVENTS Anthony Stirling EVENT ASSISTANT, DIGITAL MEDIA & COMPETITIONS Amanda Ducheminsky

The Alberta Golf Staff and members of the Board of Directors at the Spring season launch event held at the Sundre Golf Club

2017 STANDING COMMITTEES FINANCE, AUDIT & RISK MANAGEMENT Bill McNaughton – Chair Mark Bamford Leslie Dunning Susan MacKinnon

GOVERNANCE Peter Major – Chair Peter Davies Tiffany Gordon Susan MacKinnon

HUMAN RESOURCES & COMPENSATION Lorraine Moster – Chair Tiffany Gordon Ken Knowles Bob McGinn Tom Zariski

NOMINATING Steven Johnson – Chair Peter Davies Bob McGinn Tom Zariski

COMPETITIONS & HIGH PERFORMANCE Grant Cammidge Jared Engel Ken Arkley Kim Carrington Les Swelin Peter Davies Randy Robb Stephen Wigington Trent Matson Wes Gilbertson

MEMBERSHIP & GOLF COURSE SERVICES Alonzo Strange Chris Leach Herb Schlotter Janice Lamarre Letitia Dempster Lyndon King Shauna Maisey

RECREATIONAL & COMMUNITY EVENTS Gord Montgomery Jennifer Davison Jim Claggett John Deneer Lisa Vlooswyk Lois Gilbertson Rhys Royer Robert Rousselle Todd Fiske

2017 OPERATING COMMITTEES BRAND & BUSINESS DEVELOPMENT Bill Bamber Celine Copeland Curtis Stock Dean Ingalls Jack Lane Jim Richardson Paul Taylor Wendy Davies

PAST PRESIDENTS

President’s Report

ALBERTA GOLF ASSOCIATION AND ALBERTA LADIES GOLF ASSOCIATION

Tom Zariski, President, Alberta Golf

IT HAS BEEN A PRIVILEGE TO SERVE AS ALBERTA GOLF’S PRESIDENT IN 2017. I AM PLEASED TO SHARE OUR ANNUAL REPORT HIGHLIGHTING THE ACTIVITIES AND RESULTS OF THE ORGANIZATION THIS YEAR WITH YOU.

hours each year rating courses, officiating at tournaments and helping with community events and fundraising. A big thank you to all the volunteers! Lead by our professional staff Alberta Golf championships, programs and activities are ‘best in class’.

Alberta Golf was founded by golf clubs in Alberta who felt that there was need for an organization to conduct the provincial golf championships throughout the province. Alberta Golf, a non-profit organization, almost 50,000 members strong, has effectively fulfilled that mandate and achieved so much more over the last one hundred and five years.

The membership model evolution for clubs and individuals is gaining tremendous momentum. More and more facilities are getting onboard and realizing that if golf is going to grow we all need to be working in the same direction. The membership model gives the golfer great value with so many incentives and reasons to join the Alberta Golf and Golf Canada community. An increasing number of golfers and clubs are taking advantage of the tangible benefits. The recreational golfer is the most predominant golfer in Alberta. We will be looking at ways and means to involve the average golfer in more events, programs and golf opportunities.

Our vision that ‘through golf, Albertans will enjoy a high quality of life, improved health and wellness, a strong sense of community, economic benefits and personal fulfillment’ defines the importance and need to encourage juniors, seniors, women, men and families of all the many diverse demographic groups that have never been engaged in the game of golf to give it a try. This is the essence of Alberta Golf, to get people golfing! In 2017, the Alberta Golf team of staff and volunteers, along with the solidarity and collaboration of our industry partners, developed and enhanced programs to retain our core golfers, re-engage those that have left the game and encouraged new players to give it a try. We are confident that by working with our member clubs in a supportive way we will continue to grow participation in the game. Alberta Golf has a very experienced, efficient and dedicated staff that along with hundreds of volunteers create a golf experience in Alberta that is second to none. Without volunteers Alberta Golf could not possibly do what it does. They spend thousands of

On behalf of the Board of Directors thank you for your continued support.

Tom Zariski

1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940 1941 1942 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

AGA Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown A.W. Matthews A.W. Matthews B.V. Massie J. Ben Cool Unknown H.G. MacDonald R. Jennings Unknown Gordon Love J.B. Starkey A.J. Munro Robert Ainslie P.I. Cameron Bob Borland F.C. Smith Les Miller Joe Welsh Joe Welsh Gar Lush Les Delley Les Delley Harold McMahon Harold McMahon Charles Humber Charles Humber Dave Jones Dave Jones Ed Thomas Ed Thomas Bill Tait Bill Tait Al Williams Al Williams Glen Gray Dr. E.G. (Jim) Skinner Tom Wood Bruce Bailey Bruce Bailey Babe McAvoy Charlie Scott Pat Flanagan Ken Laubman Keith Alexander Suds Summerall Gerry Marshall Ken Sharratt Bill Ough John Higgin Gerry Marshall Fred Trumble Russ Powell Mike Seniuk Richard Beavers Frank McBride Frank McBride Bruce Cinnamon Bruce Cinnamon Wayne Petersen Wayne Petersen Ken Heywood Frank Crean Dave Bohlken Rick Wood Jack Brooks Gordon Groft Fran Marsden Bryan Nuebeker Bryan Nuebeker Karen Rackel Varley Weisman Enid Botchett Les Swelin Leslie Dunning Leslie Dunning Lonny Petersen Anne Ward Neville Tyrone Edwards Sandra Craig Sandra Craig Susan MacKinnon Susan MacKinnon Bob McGinn Tom Zariski

ALGA

J.R. Henley (ALGA est.) Mary Patrick J.A. McKinnon J.B. Starky C.R. Bunn Mrs. Roy H. Horne J. Train Grey Unknown Unknown Ethel Egbert Ethel Egbert Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Mrs. Victor Kastberg Catherine Rose H.C. Dalgleish Jean Wallbridge Mrs. John Michaels Louise Stempel A.C. Aherns Mrs. John Michaels S.D. McAra W.M. Hannah J.E. Walton Mina Lindberg Mrs. Glen Watson G.E. Lush Louise Stempel Mrs. John Kishiuchi Mrs. Robert Watson F. Walton Marg Ward Unknown G. Watson Unknown R.E. Stanhope R.E. Stanhope Blanche Williams Blanche Williams C.M. Campbell C.M. Campbell D.B. Grant D.B. Grant B. Hembling B. Hembling J.G. Peace J.G. Peace W.J. Siwak W.J. Siwak Lola Rozsa Lola Rozsa Thelma Coutts Thelma Coutts Catherine Simper Catherine Simper Jean Smeland Jean Smeland Pat Workun Pat Workun Penny Manson Penny Manson Corrine Wikjord Corrine Wikjord Fran Marsden Fran Marsden Fran Marsden (Amalgamation)

2017 ANNUAL REPORT — 5

Dustin Risdon takes aim at a birdie try at the 2017 SVR Alberta Open Championship at the Sundre Golf Club

6 â&#x20AC;&#x201D; ALBERTA GOLF

Executive Director/CEO’s Report A YEAR AGO, I WAS WRITING MY FIRST REPORT FOR THE ALBERTA GOLF ANNUAL GENERAL MEETING AND HAD JUST FINISHED REVIEWING THE ONE HUNDRED AND TWENTY-FIVE!! DIFFERENT PROGRAMS AND SERVICES THAT ALBERTA GOLF DID TO PROMOTE THE GAME OF GOLF IN OUR PROVINCE. THAT WAS A LOT OF DIGESTING.

on the bigger things, many other things will work themselves out. So, a big shout out to all the owners, operators, managers and professionals who contacted Golf Canada and registered their course as an active facility for us. It demonstrates that our work is being well received and that we are all in this together. I would like to thank our entire staff team who come into the office every day thinking about how to make Alberta Golf a better place. They are extremely professional in their approach to their work, they come in ready to help one another out and they are very respectful of the history and heritage of the Alberta Golf brand.

I spoke about the importance of learning, about communication and about the impact being made by our team. Our team is comprised of six staff members, nine board members, thirty-two committee members and one hundred and fourteen volunteers. This is what makes Alberta Golf work and as a group we are always learning new things and always trying to find ways to make things better. As I was reviewing our programs and thinking about what we could do in 2017, I had a phone call from our Vice President at the time, Tom Zariski, who told me he had played approximately one hundred rounds of golf in 2016. Now there’s an idea… Our focus in 2017 became about playing golf. As a Board and as a staff, we challenged ourselves to play four hundred rounds of golf as a group and I am pleased to report that we managed to do that successfully. We shattered it (445 rounds) and now we intend on doing much of the same in 2018. Not only are we confident we can accomplish this goal (let’s be honest, it’s a pretty fun goal to have), we are excited to be doing this. We will be enjoying our time on the golf course and spreading the word to friends and family about what a great investment this game really is on so many levels. We will also be bringing our committee members and our volunteers in on this challenge for 2018 and as our circle of influence grows we will measure the impact we are making, in rounds played and in experiences generated. During that phone call with Tom we also talked about the big picture impact of our efforts to boost membership numbers and the different things we could do to serve the needs of our membership. How could the 125 different things be assembled into a clear focus for the association? After all, 85% of our members were not really engaged with the activities of the association. We took into consideration the role we play in serving the industry’s needs, the impact of our golf development programs as well as how well received our competitions seem to be. Following a thorough discussion about how to measure our success, we decided to focus on membership. Our communication strategy was to work directly with golf course owners, operators, managers and professionals in building support for our new membership program by attending trade shows and

Phil Berube Executive Director/Chief Executive Officer Alberta Golf

conferences and exploring how we can better serve the industry through membership. Seventy-five meetings later, our membership numbers have grown for the first time in over a decade. Total membership reached 49,116 in 2017, up from 48,780 a year prior. It was refreshing for Alberta Golf to focus on a big target with big outcomes and galvanize our team towards achieving success that we can all be proud of. There is still a lot of work ahead of us and as we continue to work with our industry partners all indications are that we have turned the corner. Hopefully this will mean bright things ahead for the entire industry and for the game of golf.

As we welcome new Board Members to the Alberta Golf team, I would like to congratulate and thank Steve Johnson, Susan MacKinnon and Bob McGinn who will be leaving the Board in 2018. As a result of the incredible business expertise these individuals possess, their collective efforts in reviewing and improving our policies, procedures and programs, asking the right questions and generally setting the bar high in terms of expectations and professionalism, Alberta Golf is set up to enjoy long term success. I am pleased to share this annual report with you and I hope everyone enjoys a great 2018 season. I look forward to seeing you on the golf course. Sincerely,

Phil Berube

As we build out our communication plan in 2018 and increase the knowledge base of our committee members and volunteers, we will begin to measure the membership awareness levels amongst different control groups of golfers throughout the province. We are confident our results will demonstrate a positive trend as we integrate the benefits of our new membership model with all programming. Earlier this year I attended a national meeting in Saskatoon and Jeff Thompson, Golf Canada’s Chief Sport Officer mentioned that Future Links, driven by Acura facility numbers in Alberta had grown from 61 to 93. I didn’t realize that at the time and to be honest it was not a focus of ours. But it goes to show that sometimes when you set your sights 2017 ANNUAL REPORT — 7

2017 Championship Results OPEN QUALIFYING NORTH STONY PLAIN G&CC, STONY PLAIN, AB. MAY 15, 2017

SUN LIFE FINANCIAL ALBERTA LADIES AMATEUR CHAMPIONSHIP - RED DEER G&CC, RED DEER, AB. JULY 12 -14, 2017

Dale Rain - Pine Hills GC (71)

Sabrine Garrison - Country Hills GC (219)

OPEN QUALIFYING SOUTH CARSTAIRS GC, CARSTAIRS, AB. MAY 15, 2017

Mid-Amateur Champion Andrea Kosa - Glencoe G&CC (221) Mid-Master Champion Andrea Kosa - Glencoe G&CC (221)

Steven Henderson - Highwood G&CC (68) JUNIOR QUALIFYING NORTH ATHABASCA G&CC, ATHABASCA, AB. MAY 27, 2017

SUN LIFE FINANCIAL ALBERTA MEN’S AMATEUR CHAMPIONSHIP PONOKA COMMUNITY GC, PONOKA, AB. JULY 18-21, 2017

Theo Sekulic - Grande Prairie G&CC (76)

Brett Hogan - Glencoe G&CC (276)

JUNIOR QUALIFYING SOUTH BROOKS GC, BROOKS, AB. MAY 27, 2017

GUARDIAN CAPITAL ALBERTA SENIOR MEN’S CHAMPIONSHIP - HENDERSON LAKE G&CC, LETHBRIDGE, AB. JULY 25-27, 2017

Ryan Hodgins - Medicine Hat G&CC (72) JUNIOR QUALIFYING CALGARY COLLICUTT SIDING GC, CROSSFIELD, AB. MAY 28, 2017

Frank Van Dornick - Camrose GC (218) Super Senior Champion Frank Van Dornick - Camrose GC (218)

Jace Ouellette - Innisfail GC (68) JUNIOR QUALIFYING EDMONTON WHITETAIL CROSSING GC, MUNDARE, AB. MAY 28, 2017 Connor Ackroyd - Sturgeon Valley G&CC (77)

Kehler Koss and Annabelle Ackroyd 2017 Alberta Junior and Juvenile Girls Champions

AMATEUR QUALIFYING CALGARY HEATHER GLEN GC, ROCKYVIEW, AB. JUNE 5, 2017

SVR ALBERTA OPEN CHAMPIONSHIP SUNDRE GC, SUNDRE, AB. JUNE 19-20, 2017

Matt Codd - Red Deer G&CC (69)

Dustin Risdon - McCall Lake GC (139)

AMATEUR QUALIFYING CENTRAL OLDS GC, OLDS, AB. JUNE 8, 2017

Low Amateur Brendan MacDougall - Glencoe G&CC (142)

Ryan Hounjet - Priddis Greens G&CC (70) AMATEUR QUALIFYING NORTH WHITECOURT G&CC, WHITECOURT, AB. JUNE 8, 2017

SVR ALBERTA MATCH PLAY CHAMPIONSHIP - SUNDRE GC SUNDRE, AB. JUNE 21-22, 2017 Brendan MacDougall - Glencoe G&CC (Wins 2 up)

Allan Elliott - Whitecourt G&CC (74)

Runner up – Emmett Oh - Glencoe G&CC

AMATEUR QUALIFYING SOUTH VULCAN G&CC, VULCAN, AB. JUNE 8, 2017

ALBERTA MEN’S MID-AMATEUR CHAMPIONSHIP - GRANDE PRAIRIE G&CC GRANDE PRAIRIE, AB. JUNE 26-28, 2017

Brett Sheridan - Paradise Canyon G&CC (70) Glen Lengyel - Lethbridge CC (70)

Neil Thomas - Edmonton CC (223)

AMATEUR QUALIFYING EDMONTON GOOSE HUMMOCK GR, GIBBONS, AB. JUNE 9, 2017 Neil Thomas - Edmonton CC (72) SENIOR QUALIFYING SOUTH MCKENZIE MEADOWS GC, CALGARY, AB. JUNE 12, 2017 Cliff Williamson - Coyote Creek G&RVR (72) Ken Griffith - Alberta Springs Resort (72) SENIOR QUALIFYING NORTH DEVON G&CC, DEVON, AB. JUNE 13, 2017 Kevin Sieben - Northern Bear GC (73)

8 — ALBERTA GOLF

Mid Master Champion Tom Mckinlay Jr. - Lacombe G&CC (223) ALBERTA JUNIOR & JUVENILE CHAMPIONSHIPS - COAL CREEK GR RYLEY, AB. JULY 4-7, 2017 Boys Champion Max Sekulic - Grande Prairie G&CC (283) Girls Champion Kehler Koss - Glencoe G&CC (221) Boys Juvenile Champion Kai Iguchi - Banff Springs GC (287) Girls Juvenile Champion Annabelle Ackroyd - Silver Springs G&CC (222)

GUARDIAN CAPITAL ALBERTA SENIOR LADIES CHAMPIONSHIP - EDMONTON PETROLEUM G&CC, EDMONTON, AB. AUGUST 1-3, 2017 Kim Carrington - Cottonwood G&CC (229) Super Senior Champion Alison Murdoch - Victoria GC (237) ALBERTA LADIES TEAM CLASSIC STEWART CREEK G&CC, CANMORE, AB. AUGUST 1, 2017 Sue Keenan & Deborah Green Golf Canada Gold & Valley Ridge GC (58) ALBERTA BANTAM CHAMPIONSHIPS THE BRIDGES OF CLARESHOLM, CLARESHOLM, AB. AUGUST 24-25, 2017 Boys Champion Hunter Thomson- Glencoe G&CC (139) Girls Champion Kaitlyn Wingnean - Derrick G&WC (152) ALBERTA NET AMATEUR CHAMPIONSHIP LACOMBE G&CC, LACOMBE, AB. AUGUST 30-31, 2017 Men’s Champion Mike Ross - Golf Canada Gold (81 points) Ladies Champion Bonny Leenstra - Ponoka Community GC (74 points) ALBERTA MEN’S INTERCLUB CHAMPIONSHIP - CANMORE G&CC, CANMORE, AB. SEPTEMBER 7, 2017 Gross Champions Cam Dunning, Jimmy Cowan, Jordan Ediger, Scott Walker - Earl Grey GC (211) Net Champions Lee Rusinko, Greg Intenberg, Dave Reynolds, Mick Johnson - The Derrick G&WC (205)

Brett Hogan 2017 Sun Life Financial Alberta Men’s Amateur Champion

2017 ANNUAL REPORT — 9

The Alberta Junior Boys Team celebrates their interprovincial team championship victory at the 2017 Canadian Junior Boys Championship in Kingston, Ontario

10 â&#x20AC;&#x201D; ALBERTA GOLF

2017 Team Results 51ST PACIFIC COAST AMATEUR CHAMPIONSHIP - CHAMBERS BAY, UNIVERSITY PLACE, WA. JULY 18-21, 2017

CANADIAN WOMEN’S SENIOR CHAMPIONSHIP - HUMBER VALLEY RESORT, LITTLE RAPIDS, NL. AUGUST 22-24, 2017

Morse Cup Team Result - Stroke Play Tied 12th Place

Inter-Provincial Team Result - Stroke Play Fourth Place

Emmett Oh, Jack Wood, Evan Holmes (295)

Kim Carrington, Lynn Kuehn, Joan Wilson (320)

CANADIAN WOMEN’S AMATEUR CHAMPIONSHIP - CUTTEN FIELDS, GUELPH, ON. JULY 25-28, 2017

CANADIAN MEN’S MID-AMATEUR CHAMPIONSHIP - WASCANA CC, REGINA, SK. AUGUST 22-25, 2017

Inter-Provincial Team Result - Stroke Play Tied Third Place

Inter-Provincial Team Result - Stroke Play Fifth Place

Kat Kennedy, Kenna Hughes, Lauren Diederichs (306)

Brian Laubman, Tom McKinlay Jr., Gerry Macdonald (287)

CANADIAN JUNIOR BOYS CHAMPIONSHIP CATARAQUI G&CC, KINGSTON, ON. JULY 31 - AUGUST 3, 2017

CANADIAN MEN’S SENIOR CHAMPIONSHIP - KANAWAKI GC, MONTRÉAL, QC. SEPTEMBER 11-14, 2017

Inter-Provincial Team Result - Stroke Play Champions Max Sekulic, Chandler McDowell, Matt Bean (280) CANADIAN JUNIOR GIRLS CHAMPIONSHIP CAMELOT G&CC, CUMBERLAND, ON. AUGUST 1-4, 2017

The victorious Alberta Senior Men’s Team standing proudly with the provincial flag at the 2017 Canadian Senior Men’s Championship in Montreal, Quebec

Inter-Provincial Team Result - Stroke Play Champions Frank Van Dornick, Brian Laubman, Ken Griffith (283)

Inter-Provincial Team Result - Stroke Play Fourth Place Kehler Koss, Annabelle Ackroyd, Tillie Claggett (318) ALBERTA/MONTANA RYDER CUP DESERT BLUME GC, MEDICINE HAT, AB. AUGUST 7-9, 2017 Team Result - Match Play - Boys First Place Girls First Place Boys - Marko Banic, Nicholas Mah, Connor Ackroyd, Jarrett Bossert, Sam Hamelin, Ryan Hodgins Girls - Tillie Claggett, Abi Hartzler, Lauren Koenig, Jessica Marks, Victoria Tse, Grace Bell CANADIAN MEN’S AMATEUR CHAMPIONSHIP - THE TORONTO GC & ISLINGTON GC, MISSISSAUGA, ON. AUGUST 7-10, 2017 Inter-Provincial Team Result - Stroke Play Tied Fourth Place Brett Hogan, Max Sekulic, Carter Graf (289) CANADA SUMMER GAMES SOUTHWOOD G&CC, WINNIPEG, MB. AUGUST 8-11, 2017 Boys Team Result - Fourth Place Ethan Choi, Kai Iguchi, Max Murchison Girls Team Result - Fifth Place Taylor Stone, Annabelle Ackroyd, Sharmaine Rapisura

The Team Alberta contingent at the 2017 Canada Summer Games golf competition at Southwood Golf & Country Club in Winnipeg, Manitoba

2017 ANNUAL REPORT — 11

Team Alberta U19 member Jessica Marks at the 2017 Canadian Junior Girls Championship at Camelot Golf & Country Club in Cumberland, Ontario

12 â&#x20AC;&#x201D; ALBERTA GOLF

Team Alberta Provincial Squad HIGH PERFORMANCE SQUAD 2017

UNDER 19 TEAM

Brendan MacDougall - Glencoe G&CC Best notable finish - Champion, SVR Alberta Match Play Championship

Chris Horton – Glencoe G&CC Best notable finish – Champion, MJT Heritage and MJT Cottonwood

Ethan Choi - Pincher Creek GC Best notable finish - T4th place, Canada Summer Games

Benjamin Farrington – Miskanaw GC Best notable finish – 5th place, CJGA Coal Creek

Evan Holmes - Glencoe G&CC Best notable finish - Champion, Canadian University/College Championship

Matt Campbell – Earl Grey GC Best notable finish – 2nd place, PGA of Alberta Junior Masters

Matt Williams - Glencoe G&CC Best notable finish - T8th place, Canadian Men’s Amateur Championship

Mason Harder – Lethbridge CC Best notable finish – Champion, MJT Paradise Canyon

Kenna Hughes - Willow Park G&CC Best notable finish - 5th place, Sun Life Financial Ladies Amateur Championship

Zander Park – Glencoe G&CC Best notable finish – 7th place, CJGA Coal Creek Owen Murray – Lynx Ridge GC Best notable finish – T5th place, MJT Paradise Canyon Ethan de Graaf – Royal Mayfair GC Best notable finish – Champion, McLennan Ross Tour Championship Max Murchison – Glencoe G&CC Best notable finish – T9th place, Alberta Junior Boys Championship Carter Graf – Red Deer G&CC Best notable finish – 3rd place, Alberta Men’s Amateur Championship Kai Iguchi – Banff Springs GC Best notable finish – Champion, Alberta Juvenile Boys Championship Bradley Mckeating – Glencoe G&CC Best notable finish – Champion, CJGA RedTail Landing Michael Lavorato – Canyon Meadows G&CC Best notable finish – M/C, Alberta Junior Boys Championship Jessica Marks – Country Hills GC Best notable finish – 2nd place, McLennan Ross Tour Championship Kehler Koss – Glencoe G&CC Best notable finish – Champion, Alberta Junior Girls Championship Alicia Easthope – Sandpiper GC Best notable finish – 3rd place, CJGA Coal Creek Taylor Stone – Pinebrook G&CC Best notable finish – Champion, MJT Paradise Canyon & MJT Banff Cassidy Laidlaw – Glencoe G&CC Best notable finish – 2nd place, PGA of Alberta Junior Masters Annabelle Ackroyd – Silver Springs G&CC Best notable finish – Champion, Alberta Juvenile Girls Championship

2017 ANNUAL REPORT — 13

49,116

= 1000 members

Total Alberta Golf members

3000+ Participants in Future Links Program

$16,755

Paid out to members through Incident Protection Claims

25 Courses Rated 63

36 scholarship recipients received a combined total of

$55,250

Members that retrieved lost equipment via the Equipment ID Program

2,918 competitive rounds played 14 â&#x20AC;&#x201D; ALBERTA GOLF

Alberta High Performance Athletes on Team Canada

12 5

boys and girls on Team Alberta U19 program

male and female athletes in the top 25 of the Golf Canada Order of Merit

3,159

Participants in the Ladies Team Classic

1.6

Twitter Followers

Average stroke margin of victory in Provincial Championships

$49.95 Cost of a

1,200

Facebook Followers

Gold Golf Canada membership valid for 365 days

20,138

1,217

Instagram Followers

Gold level members

$33,698 raised by clubs in support of Golf Fore the Cure

1,254,002

Rounds posted in the Golf Canada Score Centre

Trained Community Golf Coaches

Playoffs needed to decide Provincial Champions

Years of publishing The Alberta Golfer Magazine

54,349 Unique visitors to www.albertagolf.org 2017 ANNUAL REPORT â&#x20AC;&#x201D; 15

Financial Analysis ALBERTA GOLF EXPERIENCED AN EXCESS OF TOTAL REVENUE OVER TOTAL EXPENSE OF $15,827 FOR THE YEAR ENDED SEPTEMBER 30, 2017 COMPARED TO $12,911 IN 2016. IT IS GRATIFYING TO REPORT THIS TO BE A SUCCESSFUL YEAR IN TERMS OF THE BUSINESS PLAN AND BUDGET THAT WAS UNDERTAKEN IN A YEAR OF SUBSTANTIAL CHANGE WITHIN THE ORGANIZATION. IT IS IMPORTANT TO EMPHASIZE THAT CHANGE CONTINUES IN THE WAY THE ORGANIZATION’S MANDATE IS BEING DELIVERED; REFINEMENTS IN BUSINESS PLANNING AND FINANCIAL REPORTING ARE ALSO EVOLVING POSITIVELY AS A RESULT. Reference was made in the 2016 Annual Report to changes in financial statement presentation that were made to better describe the results of operations in financial terms. Some of these changes have had beneficial impact beyond more meaningful presentation in the year-end financial statements as data is now being recorded in a manner that much more closely matches to the business plan, thus enabling better evaluation of performance on an ongoing basis. It is anticipated that increasing opportunities and efficiencies will be identified with better reporting, notwithstanding comparison to prior years is difficult in some cases. Much credit is due to our Executive Director/ CEO in his first full year in the role as well as his relatively new team for their efforts in the important area of financial management. REVENUE Total Revenue for the year was $1,434,609 compared to $1,486,729 in fiscal 2016. The main and most important component of revenues are the fees collected from member clubs and their members. Alberta Golf membership dues in 2017 were $777,808, up from $731,477 in 2016. Notwithstanding this increase, due in part to the “New Membership Model” referred to below and described elsewhere in this report, the challenges involved with growing the game and attracting new members to governing associations in general are well known. The number of individual members of Alberta Golf has declined in recent years to the current 49,116, from a high of 60,912 in 2004. This is the case even though there are, according to information from our allied industry associations, as many as 400,000 individuals in Alberta that are described as “golfers”, whatever their level of play might be. The New Membership Model is anticipated to be effective in enhancing the appeal of membership to this large group who might not

16 — ALBERTA GOLF

currently see membership as relevant to them. The opportunity is seen to be exceedingly important in financial terms and thus, obviously, in terms of an increased ability to improve and expand the Alberta Golf mandate. An important source of funding for Alberta Golf is from Alberta Sport Connection (ASC). ASC provided close to $140,000 in support of programs in recognition of the association as the Provincial Sport Organization for golf. Total grant funding in 2017 was $139,630 (2016 - $152,829) and is detailed in Note 9 to the financial statements. The decrease is due to revenues earned in the previous year attributed to our Alberta/Japan sport exchange program. It is noteworthy that there is no casino revenue reported in 2017. Included in Alberta Golf’s 2016 revenue was $15,108 from a casino held in 2015 in respect to designated expenses incurred in that fiscal year. A successful casino took place in 2017 that raised $64,615, received in November of 2017, however timing of the event necessitates delaying recording the revenue proceeds until expenses occur that are designated as supportable by the Alberta Gaming and Liquor Commission, likely into 2018 and possibly beyond. Additional comments on revenues and expenses follow under the headings below. SPORT DEVELOPMENT Sport Development revenues are derived primarily from program and project registration fees in programs including our Team Alberta High Performance Program. Revenues decreased to $75,480 from $101,895 in 2016 due to our grant funding being applied to government grant revenues rather than directly to sport development. Expenses connected with Sport Development increased by 7% to $276,940 in 2017 reflecting an increase in our athlete assistance program and an increased investment into coaching. COMPETITIONS Entry fees and sponsorships account for 95% of the total ($357,306, 2016 - $390,694) in this revenue category. Fewer registrations and a slow start to the season contributed to the decline. Expenses associated with the management of the 25 competitions and qualifiers during the year were $455,076 compared to $500,205 in 2016 reflecting efficiencies in the use of staff, volunteer and facilities along with the factors that affected revenue.

MEMBER PROGRAMS Member program revenue declined to $60,023 from $72,919 in 2016 due to lower advertising revenue in The Alberta Golfer print and digital magazine. Expenses associated with member programs are up approximately 26% to $241,588 due to an increased investment we are continuing to make into membership support and golf course services. COMMUNICATIONS AND BUSINESS DEVELOPMENT EXPENSES This expense classification decreased in fiscal 2017 to $156,388 from $174,904 in 2016 reflecting savings realized due to staff resources being directed to membership support. ADMINISTRATION AND OVERHEAD EXPENSES A significant reduction in reported administrative expense ($242,442, 2016 $312,937) is due to a much more accurate allocation of staff and other costs to program and project areas. Savings have been experienced across many of the line items in this expense category through careful attention to cost saving opportunities. FINANCIAL POSITION Working Capital as at September 30, 2017 was $455,661 compared to $436,659 on September 30, 2016. Of note are the decreased amounts in Cash and Accounts Payable balances resulting from the earlier reconciliation and payment of dues payable to Golf Canada in 2017. The $64,615 from the casino that was held during the year referred to above was received in November, 2017, after year end and thus is not included in the current year’s financial statements. During the 2017 fiscal year, the association incurred capital expenditures of $36,339, the major portion of which ($27,864) related to renovation work to Office Premises that enhanced functionality in the operations. Additions to Office Equipment, Computers and Electronics accounted for the remainder. As described in the Notes to the Financial Statements, income from Restricted endowment funds are recognized as an increase to net assets, primarily the cause of the increase in the carrying value in Investments to $597,524 in 2017 from $580,905 in 2016. The association completed the 2017 year without drawing upon the approved $325,000 line of credit it has with the Canadian Western Bank.

LOOKING AHEAD The extensive planning and budgeting exercises for 2018 operations have been completed and financial performance is anticipated to show modest but steady growth. The focus on membership in 2017 resulted in a larger than anticipated number of golf facilities embracing the New Membership Model. That, along with focused, professional planning and execution of programs generally bodes well for the future. Respectfully submitted,

SOURCES OF FUNDS

Membership Dues 54% Amateur Championships 21% Alberta Sport Connection 10% Casino, Other Grants & Interest 2% Member Programs & Services 4% Sponsorship 4% Sport Development & Grassroots and High Performance 5%

Bill McNaughton, Treasurer

Phil Berube, Executive Director/CEO

USES OF FUNDS

December 2017

Administration & Overhead 18% Amateur Championships 33% Member Programs & Services 18% Sport Development & Grassroots and High Performance 20% Communications & Business Development 11%

2017 ANNUAL REPORT â&#x20AC;&#x201D; 17

ALBERTA GOLF ASSOCIATION Financial Statements Year Ended September 30, 2017

18 â&#x20AC;&#x201D; ALBERTA GOLF

INDEPENDENT AUDITOR'S REPORT

To the Members of Alberta Golf Association We have audited the accompanying financial statements of Alberta Golf Association, which comprise the statement of financial position as at September 30, 2017, and the statement of operations, cash flows and changes in net assets for the year ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Alberta Golf Association as at September 30, 2017 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Calgary, Alberta December 6, 2017

CHARTERED PROFESSIONAL ACCOUNTANTS

2017 ANNUAL REPORT â&#x20AC;&#x201D; 19

20 â&#x20AC;&#x201D; ALBERTA GOLF

ALBERTA GOLF ASSOCIATION Statement of Operations Year Ended September 30, 2017

REVENUE Membership fees Less amounts paid to Golf Canada

Program Revenue Grants - Alberta Sport Connection (Note 9) Investment income - endowment funds Casino Sport development (Schedule 1) Competitions (Schedule 1) Member programs and services (Schedule 1)

Interest and other income TOTAL REVENUE

2017

2016

1,454,982 $ (677,174) 777,808

1,287,889 (556,412) 731,477

139,630 12,080 108 75,480 357,306 60,023 644,627

152,829 11,556 15,108 101,895 390,694 72,919 745,001

12,174 1,434,609

10,251 1,486,729

276,940 455,076 241,588 973,604

257,997 500,205 191,175 949,377

156,388 242,442 398,830 1,372,434

174,904 312,937 487,841 1,437,218

EXPENSES Program Expense Sport development (Schedule 2) Competitions (Schedule 3) Member programs and services (Schedule 4) Program Support Expenses Communication and business development (Schedule 5) Administration (Schedule 6) TOTAL EXPENSES Operational excess of revenue over expenses Amortization (Note 7) Unrealized gain on investments (Note 5) EXCESS OF REVENUE OVER EXPENSES

62,175 (51,298) 4,950 $

15,827

49,511 (53,633) 17,033 $

12,911

See accompanying notes to the financial statements

2017 ANNUAL REPORT â&#x20AC;&#x201D; 21

ALBERTA GOLF ASSOCIATION Statement of Cash Flows Year Ended September 30, 2017 2017

2016

CASH PROVIDED BY (USED FOR): OPERATING ACTIVITIES Excess of revenue over expenses Items not affecting cash: Amortization (Note 7) Donation recognized (Note 7) Unrealized gain on investments (Note 5)

Net change in non-cash working capital Changes in non-current liabilities Change in restricted cash

INVESTING ACTIVITIES Capital assets additions (Note 4) Changes in marketable securities

INCREASE (DECREASE) IN CASH CASH Beginning of year End of year

See accompanying notes to the financial statements

22 â&#x20AC;&#x201D; ALBERTA GOLF

15,827

12,911

54,651 (3,353) (4,950) 62,175

57,163 (3,530) (17,033) 49,511

(208,728) (3,461) (108) (150,122)

107,407 (18,638) (15,108) 123,172

(36,339) (3,265) (39,604)

(20,611) 26,887 6,276

(189,726)

129,448

664,890 475,164

535,442 664,890

ALBERTA GOLF ASSOCIATION Statement of Changes in Net Assets Year Ended September 30, 2017

Balance, beginning of the year Excess of revenue over expenses Interfund transfers Investment in capital assets Unrealized gain on marketable securities Interest on endowment funds Net change in the year

2017 Unrestricted Capital Assets Endowment Fund Fund Fund $ 369,597 $ 817,216 $ 580,905 70,478 (54,651) (11,784) 11,784 (36,339) 36,339 2,082 2,753 22,355 (18,312) 16,619

Balance, end of the year

391,952

798,904

597,524

2016

Total 1,767,718 15,827 2,082 2,753 20,662 1,788,380

Total 1,744,869 12,911 7,165 2,773 22,849 1,767,718

See accompanying notes to the financial statements

2017 ANNUAL REPORT â&#x20AC;&#x201D; 23

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 1.

NATURE OF THE ASSOCIATION AND BASIS OF PRESENTATION The Alberta Golf Association ("Alberta Golf") is a society founded in 1912 and established under the Societies Act (RSA 2000 cS-14) through an amalgamation with the Alberta Ladies Golf Association on January 1, 2000. Recognized as the provincial sport organization by the Alberta Sport Connection (“ASC”), Alberta Golf is committed to realizing the positive impacts of golf on individuals and communities across Alberta. Alberta Golf operates as a not-for-profit organization, and accordingly, does not pay income taxes. In order to maintain its status as a not-for-profit organization under the Income Tax Act (the “Act”), Alberta Golf must meet certain requirements within the Act. In the opinion of management, these requirements have been met.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations (“ASNFPO”) and reflect the following significant accounting policies: a) Revenue recognition: Alberta Golf follows the deferral method of accounting for contributions, as follows: Membership fees sold to golf courses are recognized as revenue as fees become due. Membership fees for Gold memberships sold online to individuals are recognized as revenue proportionately over the fiscal year to which they relate. Membership fees received in advance of the membership year to which they relate are recorded as deferred revenue. Unrestricted contributions are recognized as revenue when received or receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured. Unrestricted investment income is recognized as revenue in operations when earned. Restricted contributions, for which the related expenses have not yet been incurred, are deferred until the related expenses are incurred. Unrestricted endowment fund income is recognized as revenue in operations when expended on programs and services. Restricted endowment fund income is recognized as an increase to net assets. Sponsorships, entry fees and registrations are recognized as revenue upon completion of the particular tournament or event. Included in membership fees collected, are amounts collected on behalf of, and remitted, to Golf Canada. b) Capital assets: Capital assets are recorded at cost. Rates and bases of amortization applied to write off the cost of the capital assets over their estimated useful lives are as follows: Office premises Office and field equipment Computers and electronics

5% 20% 25%

declining balance method declining balance method declining balance method

c) Cash and cash equivalents: Alberta Golf considers all balances with banks and highly liquid investments with maturities of three months or less at the date of purchase to be cash and cash equivalents. (continues)

24 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) d) Contributed materials and services: Volunteers contribute a substantial number of hours each year to assist Alberta Golf in fulfilling its mandate. The value of contributed services is not recognized in these financial statements. Contributed materials, the value of which can be reasonably estimated, are recorded in the financial statements at that estimated value. e) Financial instruments policy: Financial instruments are recorded at fair value on initial recognition. Equity instruments that are quoted in an active market are subsequently recorded at fair value, with any unrealized gains and losses reported in income. All other financial instruments are recorded at cost or amortized cost, unless management has elected to record at fair value. Alberta Golf has not elected to carry any such financial instruments at fair value. With respect to financial assets measured at cost or amortized cost, Alberta Golf recognizes in the statement of operations, an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed in the statement of operations in the period the reversal occurs. f) Foreign currency transactions: Monetary assets (investments) of Alberta Golf which are denominated in foreign currencies are translated at year end exchange rates. Investment revenue and expenses are translated at the rates of exchange in effect at the respective transaction dates. The resulting foreign exchange gains and losses are recorded as income or expense in the period realized for unrestricted assets and as an increase or decrease in funds for restricted assets. g) Use of accounting estimates: The preparation of financial statements in conformity with ASNFPO requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Specific items subject to estimation include amortization of capital assets and provision for allowance for doubtful accounts. The allocation of salaries expense to individual programs is based on management's estimate of hours spent on each program. These estimates are subject to measurement uncertainty and the effects of changes in these estimates could be significant.

2017 ANNUAL REPORT â&#x20AC;&#x201D; 25

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 3.

DEFERRED CASINO REVENUE Pursuant to the requirements set out by the Alberta Gaming and Liquor Commission (“AGLC”), funds raised through casinos and not yet expensed have been designated as being held for future years’ expenses of the following types: a) Administrative costs (maximum 10%) b) Awards, trophies and plaques c) Equipment purchase and repair for Junior programs d) Promotional activities e) Rental facilities for Junior tournaments and camps f) In-province travel g) Volunteer conferences, seminars and training Details of deferred revenue are as follows: 2017 Deferred casino revenue, beginning of year Casino proceeds

206

206 (108)

Designated expenses Deferred casino revenue, end of year

2016

15,314 15,314 (15,108)

206

CAPITAL ASSETS Office Premises

2017 Cost at beginning of year

Additions $

Additions Accumulated amortization Net book value at end of year

206,475 $ (193,633)

744,756 $ Office Premises

Computers & Electronics

6,925

(454,496)

2016 Cost at beginning of year

1,171,388 $ 27,864

Accumulated amortization Net book value at end of year

Office Equipment

19,767 $

Office Equipment

204,957 $

4,208

1,518

(415,076)

(188,691)

756,312 $

65,007 $

17,784 $

103,402 $

1,546,272

1,550

36,339

(89,356)

(783,707)

20,335 $

14,046 $

Field Equipment

50,122 $

103,402 $

798,904

Total 1,525,661

14,885

20,611

(39,444)

(85,845)

(729,056)

25,563 $

17,557 $

The office premises are held as collateral for a line of credit from Canadian Western Bank (Note 10).

26 — ALBERTA GOLF

Total

(46,222)

Computers & Electronics

1,167,180 $

Field Equipment

817,216

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 5.

FUND ACCOUNTING a) Capital Assets fund: Capital expenditures are allocated to Office Premises, Office Equipment, Computer and Electronics or Field Equipment. b) Endowment funds: E. Lynne Cox Memorial Fund (original endowment of $20,000 contributed in 1995) Provides program funding for junior girls golf annually. Arthur P. and E. Lynne Cox Memorial Fund (original endowment of $100,000 was accumulated from 1995 â&#x20AC;&#x201C; 1997) Provides program funding for the Alberta Montana Junior Ryder Cup Teams. General Endowment Funds Investment income from Alberta Golf General Endowment Funds is intended for Alberta Golf programs and services. Title to investments with respect to the E. Lynne Cox Memorial Fund and a portion of the General Endowment Fund managed by the ASC is held, in perpetuity, by the ASC. Income on these investments may be paid to Alberta Golf on request, providing that the project description falls within the purpose for which the funds are maintained. The marketable securities managed by CIBC Wood Gundy are recorded at cost and unrealized gains or losses are recorded to reflect the fair market value of the securities. The carrying value of the marketable securities, managed by the ASC on behalf of Alberta Golf, approximates their fair market value. ENDOWMENT FUNDS 2016

Interest

Used in Unrealized Gain Programs on Investments

2017

Funds Held by ASC E. Lynne Cox Memorial Funds

21,108 $

187 $

82,913

735

83,648

104,021

922

104,943

Arthur P. & E. Lynne Cox Memorial Funds

141,199

2,566

2,082

145,847

General Endowment Funds

335,685

6,099

4,950

346,734

476,884

8,665

7,032

492,581

580,905 $

9,587 $

7,032 $

597,524

General Endowment Funds

21,295

Funds Held by CIBC Wood Gundy

Total Endowment Funds

2017 ANNUAL REPORT â&#x20AC;&#x201D; 27

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 6.

DEFERRED REVENUE Deferred revenue consists of: 2017 Deferred membership fees Deferred grant revenue - ASC (Note 9) Total

2016

52,228 16,250

46,502 20,611

68,478

67,113

DEFERRED DONATIONS In 2009, Alberta Golf received a donation of $100,000 from Lola Rozsa for the construction of its new office building. Recognition of this revenue will occur over the life of the building and is included in the calculation of amortization of the building. Amortization was calculated as follows: 2017 Amortization - building

Amortization - other assets Deferred donation recognized Amortization expense

2016

39,420 $

39,806

15,231

17,357

54,651

57,163

(3,353)

(3,530)

51,298 $

53,633

The remaining amount of deferred donation was calculated as follows: 2017 Deferred donations, beginning of the year

Donation recognized Deferred donations, end of the year

2016

67,062 $

70,592

(3,353)

(3,530)

63,709 $

67,062

COMMITMENTS Alberta Golf has existing lease agreements for two vehicles. The leases expire in 2018. Monthly lease payments under these agreements total $896. Payments may be reduced due to personal use of vehicles by employees. Future operating lease payments are as follows: 2018

28 â&#x20AC;&#x201D; ALBERTA GOLF

$ 4,948

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 9.

GRANT REVENUE During the year, Alberta Golf received grants totaling $135,269 (2016 - $138,557) from the ASC and $16,250 in grants was deferred to 2018. This is comprised of the following amounts: 2017 Annual Association Funding Sport Support Grant Canada Summer Games Western Canada Summer Games

135,269 20,611 (16,250) -

Deferred Grant Revenue from prior year Sport Support Grant deferred (Note 6) Canada Summer Games deferred (Note 6) Total

83,769 32,500 19,000 -

2016

139,630

85,257 32,500 19,000 1,800 138,557 34,883 (15,619) (4,992)

152,829

10. LINE OF CREDIT Alberta Golf has a $325,000 line of credit with the Canadian Western Bank. The line of credit bears interest at a rate that is the greater of prime plus 1.65% or 4.35%. As at September 30, 2017, the interest rate is 4.85%. It was undrawn as at September 30, 2017. The line of credit is subject to review at any time by the Bank. The next annual review is scheduled for completion by January 31, 2018. The line of credit is secured by a general security agreement over all present and after acquired property of Alberta Golf and a first fixed charge of the office premises with a carrying value of $744,756. 11. RELATED PARTY TRANSACTIONS Alberta Golf’s related parties include directors and management. In addition, directors and management, or their related parties, may hold positions in other entities that result in them having significant influence over the strategic operating, financing and investing activities of these entities. The Alberta Golf Association Foundation (the “Foundation”) provides scholarships on an annual basis for all eligible Albertans. The Foundation president is an invited guest at all Alberta Golf board meetings. All transactions with related parties were in the normal course of operations. Transactions between related parties are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties and which are similar to those negotiable with third parties. Included in Alberta Golf's accounts receivable as at September 30, 2017 is an amount receivable from the Foundation of $2,500 (2016 - nil). Included in Alberta Golf's accounts payable and accrued liabilities as at September 30, 2017 is an amount owing to the Foundation of $6,000 (2016 - $235) payable to the Foundation. Included in salaries and benefits expense (Schedule 7) is $308,587 paid to management.

2017 ANNUAL REPORT — 29

ALBERTA GOLF ASSOCIATION Notes to Financial Statements Year Ended September 30, 2017 12. FINANCIAL INSTRUMENTS Alberta Golf is exposed to financial risks through its financial instruments. Market risk Alberta Golf’s assets include significant amounts of marketable securities. These assets are externally managed. The value of marketable securities changes in concert with the business, financial condition, management and other relevant factors affecting the underlying organization that issued the securities. In addition, general economic conditions of the markets, in which such organizations operate, change, thereby exposing Alberta Golf to fluctuations in the value of investments. The fair market value of marketable securities at September 30, 2017 is $492,581 (2016 - $476,884). A sensitivity analysis shows that a change in 1% of equity prices will result in a $4,926 change in net assets. Credit risk Alberta Golf is exposed to credit risk to the extent that club members may experience financial difficulty and would be unable to meet their obligations. Alberta Golf has a large number of club members, which minimizes the concentration of credit risk. Interest rate risk Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows associated with the instruments will fluctuate due to changes in interest rates. The exposure of Alberta Golf to interest rate risk arises from its interest bearing assets. Alberta Golf manages its exposure to interest rate risk on its cash and cash equivalents and investments by maximizing interest income earned on excess funds while maintaining the liquidity to conduct operations on a day to day basis. Fluctuations of market rates of interest on cash and cash equivalents and investments do not have a significant impact on Alberta Golf’s results of operations. The objective of Alberta Golf with respect to fixed income investments is to ensure the security of principal amounts invested, provide a high degree of liquidity, and achieve a satisfactory investment return. Alberta Golf manages the interest rate risk exposure on its fixed income investments by using a laddered portfolio with varying terms to maturity and minimizing the average term to maturity. Currency risk Currency risk refers to the risk that the fair value of financial instruments or future cash flows associated with the instruments will fluctuate relative to the Canadian dollar due to changes in foreign exchange rates. The functional currency of Alberta Golf is the Canadian dollar. Alberta Golf infrequently transacts in U.S. and foreign currencies. Alberta Golf invests a portion of its investment portfolio in foreign equities. Alberta Golf mitigates its currency risk exposure by placing limits on the proportion of portfolio investments in foreign currencies. Liquidity risk Liquidity risk is the risk that Alberta Golf will not be able to meet a demand for cash or fund its obligations as they become due. Alberta Golf meets its liquidity requirements by monitoring cash flows from operations and anticipating investing and financing activities. Alberta Golf has a short term secured bank facility of up to $325,000. At September 30, 2017 and 2016, the bank facility had not been drawn upon. 13. COMPARATIVE FIGURES The comparative figures have been reclassified, where necessary, for consistency with current year disclosure.

30 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION Notes to the Financial Statements September 30, 2017

SCHEDULE OF PROGRAM REVENUE Year Ended September 30, 2017 SCHEDULE 1 2017 Sport Development $ 56,749 18,731 $ 75,480

Entry fees and registrations Sponsorships Grants and other Total

Competitions $ 276,837 62,450 18,019 $ 357,306

Member Programs and Services $ 762 $ 59,261 $ 60,023 $

Total 334,348 62,450 96,011 492,809

Member Programs and Services $ 546 $ 72,373 $ 72,919 $

Total 379,597 62,633 123,278 565,508

2016 Sport Development $ 69,342 32,553 $ 101,895

Entry fees and registrations Sponsorships Grants and other Total

Competitions $ 309,709 62,633 18,352 $ 390,694

SCHEDULE OF SPORT DEVELOPMENT EXPENSES SCHEDULE 2

Contract fees Salaries and benefits (Schedule 7) Travel Clothing Grants and donations Facility and equipment fees Food and beverage Registrations Team member recognition award Team Alberta equipment Total

2017 92,584 63,112 39,091 26,873 20,903 15,399 12,475 4,633 1,770 100 276,940

2016 68,230 69,360 47,979 13,852 6,290 29,201 11,605 9,113 2,367 257,997

2017 ANNUAL REPORT â&#x20AC;&#x201D; 31

ALBERTA GOLF ASSOCIATION Notes to the Financial Statements September 30, 2017

SCHEDULE OF COMPETITIONS EXPENSES SCHEDULE 3

Facility and equipment fees Salaries and benefits (Schedule 7) Food and beverage Travel Competitor participation awards Competitor performance awards Clothing Contract fees Signs and banners Media day Office and courier Grants and other Total

2017 101,663 86,087 57,989 46,946 45,641 41,738 24,764 17,088 16,439 12,617 4,104 455,076

2016 119,477 104,375 77,302 46,945 56,143 32,698 8,492 16,983 15,304 8,347 13,330 809 500,205

SCHEDULE OF MEMBER PROGRAMS AND SERVICE EXPENSES SCHEDULE 4 2017 Salaries and benefits (Schedule 7) Contract fees Printing, postage & telephone Travel Clothing Grants & other Food and beverage Facility and equipment Miscellaneous members services Total

32 â&#x20AC;&#x201D; ALBERTA GOLF

93,616 36,075 29,425 21,638 19,714 16,831 15,942 7,613 734 241,588

2016 48,474 38,898 27,734 28,068 17,856 6,273 14,510 6,737 2,625 191,175

ALBERTA GOLF ASSOCIATION Notes to the Financial Statements September 30, 2017

SCHEDULE OF COMMUNICATIONS AND BUSINESS DEVELOPMENT EXPENSES SCHEDULE 5 2017 Salaries and benefits (Schedule 7) Registrations Travel Food and beverage Printing, postage & telephone Facility fee Miscellaneous members services Contract fees Total

92,811 25,729 16,639 10,630 8,854 925 800 156,388

2016 94,907 23,935 27,245 13,572 8,289 1,670 886 4,400 174,904

SCHEDULE OF ADMINISTRATION AND OVERHEAD EXPENSES SCHEDULE 6 2017 Salaries and benefits (Schedule 7) Legal and audit Contract fees Building maintenance and repairs Insurance Property taxes Office supplies and printing Telephone Information technology Delivery costs Utilities Management fees Professional development Travel Bad debts Loss on termination of lease Total

96,703 25,000 20,136 16,800 15,707 14,985 12,586 11,944 9,184 6,762 5,896 4,940 789 718 292 242,442

2016 125,962 25,000 42,000 14,781 19,184 14,275 9,289 15,791 12,134 7,482 5,665 4,696 10,671 1,493 4,514 312,937

2017 ANNUAL REPORT â&#x20AC;&#x201D; 33

ALBERTA GOLF ASSOCIATION Notes to the Financial Statements September 30, 2017

SCHEDULE OF SALARIES AND BENEFITS SCHEDULE 7 2017 Salaries and benefits for all employees, including management, are allocated between programs as follows: Sport Development (Schedule 2) Competitions (Schedule 3) Member Programs and Services (Schedule 4) Communications and Business Development (Schedule 5) Administration and Overhead (Schedule 6) Total

34 â&#x20AC;&#x201D; ALBERTA GOLF

63,112 86,087 93,616 92,811 96,703 432,329

2016

69,360 104,375 48,474 94,907 125,962 443,078

Young golfers making new friends at the 2017 Alberta Bantam & Novice Championships at the Bridges at Claresholm Golf Club

2017 ANNUAL REPORT â&#x20AC;&#x201D; 35

Foundation President’s Report

Allan Pruss - University of Jamestown

Chad Cole - University of Alberta Colsen Bajema - SAIT Conaire Kehoe - University of British Columbia Dalton Ronan - University of Alberta Danny Ngo - University of Calgary

Each year the Foundation awards upwards of 40 scholarships and over $50,000 to deserving applicants. These scholarships are awarded due to the contributions of participants and supporters of the game, endowments from loyal patrons, and a casino fundraising initiative supported by a dedicated group of volunteers. Since the Foundation was established in 1994 it has supported over 400 individuals with over $600,000 in scholarships funds.

I wish to thank the volunteers who serve on the Foundation Board of Directors and the Scholarship Selection Committee. Sadly, we lost a key member of our community in 2017 in Mike Gendron. Mike was serving as President of the Foundation and was part of the scholarship selection process before passing away unexpectedly. We wish to thank Mike for his contributions and leadership.

Alicia Easthope - University of Montevallo

Celine Copeland - Mount Royal University

THE ALBERTA GOLF ASSOCIATION FOUNDATION HAS BEEN PROVIDING POST-SECONDARY SCHOLARSHIP FUNDING FOR NEARLY TWENTY-FIVE YEARS AND IS FOCUSED ON SUPPORTING STUDENTS ON THEIR PATH TO PURSUE A POSTSECONDARY EDUCATION.

Eligibility for scholarships is open to the public, to male and female Alberta residents of all backgrounds, is representative of the larger community, and not dependent on an individual’s relationship with any particular sport or individual. The Foundation was pleased to receive a very high number of scholarship applications this year. On this page is a listing of this year’s award winners and their scholarship bursaries. Candidates are selected based on financial need, academic standing, as well as volunteer work and references. This year a total of $55,250 has been awarded to the 36 students listed to the right. What an incredible organization!

2017 SCHOLARSHIP RECIPIENTS

Elizabeth Zee - The King’s University Farhan Zahid - University of Calgary Geoffrey Coulthard - University of Alberta Grant Numrich - Missouri Valley College Hamzah Naeem - University of Calgary Heather Gisi - University of Lethbridge James Robillard - University of West Georgia JJ Beitel - Mount Royal University Jolene Freerksen - University of Western States Kate Martens - University of Victoria Kehler Koss - New Mexico State University

Tom Zariski President Alberta Golf Foundation THANK YOU TO OUR PATRONS: Charles C. Reid Foundation Frank Lindsay Memorial Foundation McLennan Ross Sun Junior Golf Tour R.E. Courage Memorial Fund Christa Spahmann Memorial Lola Rozsa Jeff Llewellyn Memorial Fund Sun Life Financial Bob Rintoul Memorial Fund

Kirsten Throndson - University of Alberta Liam Hirch - University of Saskatchewan Lindsay Almberg - University of Alberta Luke Scanlon - Mount Royal University Melanie Murchison - University of Victoria Michael Pruss - University of Jamestown Miranda Tobert - University of Alberta Nicole Renchko - The King’s University Quinn Ceplis - University of Calgary Quinn Fitzgerald - University of Victoria Rachel Bokenfohr - University of Alberta Rachel Wiebe - MacEwan University Rebecca Todd - University of Lethbridge Ryan Rody - Drury University Shaye Leidenius - Red Deer College Taylor Stone - University of Texas at El Paso Tyler Vandermeer - University of Alberta

Tom Zariski President

36 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION FOUNDATION Financial Statements Year Ended September 30, 2017

2017 ANNUAL REPORT â&#x20AC;&#x201D; 37

INDEPENDENT AUDITOR'S REPORT

To the Members of Alberta Golf Association Foundation We have audited the accompanying financial statements of Alberta Golf Association Foundation, which comprise the statement of financial position as at September 30, 2017, and the statements of operations, changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Alberta Golf Association Foundation as at September 30, 2017 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Calgary, Alberta December 6, 2017

38 â&#x20AC;&#x201D; ALBERTA GOLF

CHARTERED PROFESSIONAL ACCOUNTANTS

2017 ANNUAL REPORT â&#x20AC;&#x201D; 39

ALBERTA GOLF ASSOCIATION FOUNDATION Statement of Operations Year Ended September 30, 2017 2017 REVENUE Casino revenue (Note 5) Scholarships - not tax receipted Scholarships - tax receipted General - not tax receipted General - tax receipted

EXPENSES Scholarships and bursaries General and administrative Casino expenses

EXCESS OF REVENUE OVER EXPENSES

See accompanying notes to the financial statements 40 â&#x20AC;&#x201D; ALBERTA GOLF

39,069 11,909 2,000 9,000 2,045

2016

36,933 11,193 2,000 5,393 2,035

64,023

57,554

48,000 7,048 3,069

48,000 6,073 933

58,117

55,006

5,906

2,548

ALBERTA GOLF ASSOCIATION FOUNDATION Statement of Cash Flows Year Ended September 30, 2017 2017 OPERATING ACTIVITIES Excess of revenue over expenses

Changes in non-cash working capital: Changes in accounts receivable and accounts payable Changes in non-current deferred casino revenue Changes in restricted cash Endowment scholarships paid Endowment donations received

DECREASE IN CASH FLOW Cash - beginning of year Cash - end of year

5,906

2016

2,548

(3,378) (35,936) 35,936 (7,250) 3,000

(2,274) (36,182) 39,527 (6,000) -

(7,628)

(4,929)

(1,722)

(2,381)

4,656

7,037

2,934

4,656

See accompanying notes to the financial statements 2017 ANNUAL REPORT â&#x20AC;&#x201D; 41

ALBERTA GOLF ASSOCIATION FOUNDATION Statement of Changes in Net Assets Year Ended September 30, 2017 Unrestricted Fund Net assets - beginning of year $ Donations

5,906 $ -

2,978 -

(2,978) (48,000)

(10,117)

Gain and management fee Net assets - end of year $

50,978

Scholarships Disbursements

223 $

13,045

Investment income Interfund transfer

Restricted Fund

11,812 $

Endowment Fund

280,246

Total 2017

280,381

73,261

57,559

9,280

9,220

(7,250)

(15,666) 223 $

9,238

286,375

Total 2016

275,848

(55,250)

(54,000)

(10,117)

(7,010)

(15,666) $

287,883

225 $

286,375

Statement of Changes in Unrestricted Net Assets Year Ended September 30, 2017 2017 Unrestricted donations and membership fees Transfer from/(to) restricted fund General expenses

See accompanying notes to the financial statements 42 â&#x20AC;&#x201D; ALBERTA GOLF

5,906 5,906

Unrestricted funds, beginning of year Unrestricted funds, end of year

13,045 2,978 (10,117)

2016

11,812

9,433 (67) (7,010) 2,356 3,550

5,906

ALBERTA GOLF ASSOCIATION FOUNDATION Statement of Changes in Restricted Funds Year Ended September 30, 2017

Scholarships Balance Donations and and Interfund Investment Beginning Disbursements Transfers Income of Year Scholarships and Grants: Casino scholarships Charles C. Reid McLennan Ross Sun Life Financial Mike Bower Scholarship Funds: Turf Project Total restricted scholarships and funds

(826) $ 54 183

36,000 $ 8,000 2,000 2,000 -

812 223 $

48,000 $

Balance End of Year

(36,000) $ (8,000) (2,000) (2,000) -

(826) 54 183

(48,000) $

812 223

Statement of Changes in Restricted Funds Year Ended September 30, 2016

(826) $ (139) 183

36,000 $ 9,193 2,000 1,000 -

812 30 $

48,193 $

Balance End of Year

(36,000) $ (9,000) (2,000) (1,000) -

(826) 54 183

(48,000) $

812 223

See accompanying notes to the financial statements

2017 ANNUAL REPORT â&#x20AC;&#x201D; 43

ALBERTA GOLF ASSOCIATION FOUNDATION Statement of Changes in Endowment Funds Year Ended September 30, 2017

Lola Rozsa Jeff Llewellyn Bob Rintoul Christa Spahmann Frank Lindsay R.E. Courage Total endowment funds

Balance Beginning of Year $ 55,995 55,643 51,760 47,605 42,065 27,178 $ 280,246

Scholarships Gain/(Loss) and Balance Donations and Interfund Investment and Management End of Transfers Income Disbursements fees Year $ $ 1,854 $ (1,500) $ (3,130) $ 53,219 $ 1,843 (1,000) (3,112) 53,374 $ 1,714 (1,000) (2,893) 49,581 $ 9,238 1,576 (2,000) (2,661) 53,758 $ 1,393 (1,000) (2,351) 40,107 $ 900 (750) (1,519) 25,809 $ 9,238 $ 9,280 $ (7,250) $ (15,666) $ 275,848

Statement of Changes in Endowment Funds Year Ended September 30, 2016

Lola Rozsa Jeff Llewellyn Bob Rintoul Christa Spahmann Frank Lindsay R.E. Courage Total endowment funds

See accompanying notes to the financial statements

44 â&#x20AC;&#x201D; ALBERTA GOLF

Scholarships Gain/(Loss) and Balance Balance Donations and Interfund Investment and Management End of Beginning Transfers Income Disbursements fees Year of Year $ 55,598 $ $ 1,852 $ (1,500) $ 45 $ 55,995 54,774 1,824 (1,000) 45 55,643 51,020 1,699 (1,000) 41 51,760 47,001 1,566 (1,000) 38 47,605 41,644 1,387 (1,000) 34 42,065 26,764 892 (500) 22 27,178 $ 276,801 $ $ 9,220 $ (6,000) $ 225 $ 280,246

ALBERTA GOLF ASSOCIATION FOUNDATION

Notes to Financial Statements Year Ended September 30, 2017

NATURE OF THE BUSINESS AND BASIS OF PRESENTATION

The Alberta Golf Association Foundation (“the Foundation”) is a not-for-profit association organized to provide scholarships to Albertans for post-secondary education and fund research projects relating to golf and golf facilities. The Foundation was established under the Societies Act on February 10, 1994 with active operations commencing October 1, 1995. As the Foundation is registered as a charitable organization authorized to issue donation receipts for income tax purposes under the Income Tax Act (“the Act”), the Foundation does not pay taxes on its net revenue. In order to maintain its status as a charitable organization under the Act, the Foundation must meet certain requirements within the Act. In the opinion of management, these requirements have been met. 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations ("ASNFPO") and reflect the following significant accounting policies. a) Revenue recognition The Foundation follows the deferral method of accounting for contributions, as follows: Unrestricted contributions are recognized as revenue when received or receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured. Restricted contributions are recognized when the externally imposed restrictions are fulfilled. Endowment contributions are recognized as a direct increase in net assets when received. b) Cash Cash includes unrestricted cash on deposit. c) Contributed services Volunteers contribute a substantial number of hours each year to assist the Foundation in fulfilling its mandate. Because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements. d) Financial instruments Financial instruments are recorded at fair value on initial recognition. Equity instruments that are quoted in an active market are subsequently recorded at fair value. All other financial instruments are subsequently recorded at amortized cost, unless management has elected to record at fair value. The Foundation has not elected to carry any such financial instruments at fair value. With respect to financial assets measured at cost or amortized cost, the Foundation recognizes in the statement of operations an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed in the statement of operations in the period the reversal occurs. (continues)

2017 ANNUAL REPORT — 45

ALBERTA GOLF ASSOCIATION FOUNDATION

Notes to Financial Statements Year Ended September 30, 2017 2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) e) Use of accounting estimates The preparation of financial statements in conformity with ASNFPO requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Specific items subject to estimation include potential impairment of investments. These estimates are subject to measurement uncertainty and the effects of changes in these estimates in future periods could be significant.

INVESTMENTS 2017

2016

Cash Fixed income investments

18,708 263,487

17,469 264,874

Total

282,195

282,343

Fixed income investments are invested in government and corporate bonds and entirely denominated in Canadian dollars. As at September 30, 2017, the investments balance is $282,195 (2016 - $282,343), while the general endowment fund balance is $275,848 (2016 - $280,246). The difference of $6,347 (2016 - $2,097) between the investments balance and the general endowment balance is due to current year scholarship expenses of $7,250 and prior year scholarship expenses of $2,097 being paid with cash rather than withdrawals from the investments, offset by a $3,000 endowment donation received that was deposited as cash rather than to investments. 4.

RESTRICTED SCHOLARSHIP FUNDS AND GRANTS The restricted net assets are represented by the following assets: 2017 Investments

276,071

2016 $

280,469

All restricted net assets are subject to externally imposed restrictions. These external restrictions stipulate that the funds be used as follows: a) Bob Rintoul Scholarship In 2012, Calgary entrepreneur and philanthropist, Mr. Bob Rintoul provided a $50,000 endowment to the Foundation to provide a lasting scholarship legacy. Investment income from the endowment fund is utilized to provide post-secondary scholarships each year to southern Alberta area students. In 2017, a $1,000 scholarship was awarded. b) Charles C. Reid Memorial Foundation Scholarship In 2017, scholarships totaling $8,000 were awarded to students pursuing post-secondary degrees. This program is funded by the Estate of Charles C. Reid, formerly an enthusiastic patron of golf from Banff. (continues) 46 â&#x20AC;&#x201D; ALBERTA GOLF

ALBERTA GOLF ASSOCIATION FOUNDATION

Notes to Financial Statements Year Ended September 30, 2017 4.

RESTRICTED SCHOLARSHIP FUNDS AND GRANTS (continued) c) Christa Spahmann Memorial Scholarship Christa was fun loving, hardworking and an extremely good athlete. She was liked by all around and always had a smile on her face. The recipient of the Christa Spahmann Memorial Scholarship will display these qualities and preference will be given to a southern Alberta female pursuing a post-secondary education. Funds for this scholarship are raised through the Christa Spahmann Memorial Tournament and contributed to the Foundation on an annual basis. In 2017, two $1,000 scholarships were awarded. d) Frank Lindsay Foundation Grant In 2008, an agreement was made with the Frank Lindsay Foundation to contribute an annual grant to sponsor the Alberta Bantam Championship. Subsequent to the signing of this agreement, a Canada Revenue Agency challenge resulted in the funds being built into a scholarship endowment fund. In 2017, a $1,000 scholarship was awarded. e) Jeff Llewellyn Scholarship In 2013, the Foundation received a generous endowment of $51,800 to honour the memory of Jeff Llewellyn. The endowment was set up through his employer, MNP LLP. Jeff Llewellyn was an avid golfer who was dedicated to mentoring youth. In his memory, the Foundation will award a minimum $1,000 scholarship annually, from the investment income of the endowment, to students pursuing a post-secondary education in the area of Sports Administration with an emphasis on those pursuing Bachelor of Commerce, Economics, or Business Management degrees. In 2017, a $1,000 scholarship was awarded. f) Lola Rozsa Memorial Golf Scholarship & Bursary (original Endowment of $50,000 contributed in 1999) Affectionately nicknamed the “Grandmother of Calgary Golf” by local media, Lola dedicated herself to the promotion of the game, serving on the Calgary, Alberta and Canadian ladies golf associations. In 1999, Lola Rozsa donated a $50,000 endowment to the Foundation to establish an annual post-secondary scholarship and bursary award program as a perennial gift to the game she loved. Investment income from the endowment fund provides annual post-secondary scholarships. In 2017, two $750 scholarships were awarded. g) McLennan Ross Sun Junior Golf Tour Scholarship In 2017, two scholarships of $1,000 were awarded to students who have participated in the McLennan Ross Sun Junior Golf Tour and are now pursuing post-secondary degrees. Program funding is provided by the law firm, McLennan Ross, the title sponsor of this Junior Tour. h) Mike Bower Memorial Scholarship Mike Bower started playing the game of golf at age 11 and by the conclusion of his junior career would capture two consecutive Alberta Junior Championships. Donations to the fund are accepted from family and friends annually. i) R.E. Courage Memorial Scholarship The family of R.E. “Dick” Courage created a scholarship endowment to honour the legacy of a sportsman that contributed greatly to his community. Funds for the endowment were raised by family and friends through the staging of annual golf tournaments. Investment income from the endowment fund provides annual postsecondary scholarships. In 2017, a $750 scholarship was awarded. (continues)

2017 ANNUAL REPORT — 47

ALBERTA GOLF ASSOCIATION FOUNDATION

Notes to Financial Statements Year Ended September 30, 2017 4.

RESTRICTED SCHOLARSHIP FUNDS AND GRANTS (continued) j) Sun Life Financial Scholarship Sun Life Financial is a long time sponsor of the Alberta Men’s and Women’s Amateur Golf Championships. This annual $2,000 scholarship is awarded to an Alberta resident pursuing a post-secondary education. In 2008, Sun Life Financial who is the title sponsor of the Alberta Men’s and Women’s Amateur Golf Championship and the Alberta Golf Association decided to offer an annual $2,000 scholarship from proceeds of the championships. This scholarship was issued and a transfer of funds made from the Alberta Golf Association to the Foundation prior to the year end of September 30, 2017. k) Turf Project Fund The Alberta Golf Association Turfgrass Management Scholarship is awarded to students pursuing turfgrass management education. Monies in the Turf Project Fund are raised through an Alberta Golf Association Turf School.

DEFERRED CASINO REVENUE Pursuant to the requirements set out by the Alberta Gaming and Liquor Commission ("AGLC"), funds raised through casinos and not expensed have been designated as being held for future years’ expenses of the following types: a) Administrative costs (maximum 10%) b) Bursaries and scholarships Details of restricted cash and deferred revenue are as follows: 2017

2016

Deferred casino revenue - beginning of year Interest income Casino proceeds Designated expenses and scholarships

53,434 67 74,938 (39,069)

89,616 751 (36,933)

Deferred casino revenue - end of year

89,370

53,434

As at September 30, 2017, the restricted cash balance is $89,870 (2016 - $53,934). The difference between the restricted cash balance and the deferred casino revenue is due to casino expense payables of $500 (2016 - $500), which are included in accounts payable and accrued liabilities. (continues)

48 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION FOUNDATION

Notes to Financial Statements Year Ended September 30, 2017 6.

RELATED PARTY TRANSACTIONS The Foundation’s related parties include directors and key management personnel. In addition, directors and key management personnel, or their related parties, hold positions in Alberta Golf Association ("AGA") that result in them having significant influence over the strategic operating, financing and investing activities of the Foundation. All transactions with AGA were in the normal course of operations. Transactions between related parties are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties and which are similar to those negotiable with third parties. Included in the Foundation’s accounts payable and accrued liabilities as at September 30, 2017 is an amount owing to AGA of $2,500 (2016 - Nil). Included in the accounts receivable as at September 30, 2017 is an amount receivable from AGA of $6,000 (2016 - $1,850).

7. FINANCIAL RISK MANAGEMENT The Foundation is exposed to financial risks through its financial instruments. Market Risk: The Foundation’s assets include significant amounts of marketable securities. These assets are externally managed. The value of marketable securities changes in concert with the business, financial condition, management and other relevant factors affecting the underlying organization that issued the securities. In addition, general economic conditions of the markets, in which such organizations operate, change, thereby exposing the Foundation to fluctuations in the value of investments. The fair market value of marketable securities at September 30, 2017 is $282,195 (2016 - $282,343). Interest rate risk: Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows associated with the instruments will fluctuate due to changes in interest rates. The exposure of the Foundation to interest rate risk arises from its interest bearing assets. The Foundation manages its exposure to interest rate risk on its cash and investments by maximizing interest income earned on excess funds while maintaining the liquidity to conduct operations on a day to day basis. Fluctuations of market rates of interest on cash and cash equivalents and short-term investments do not have a significant impact on the Foundation's results of operations. The objective of the Foundation with respect to fixed income investments is to ensure the security of principal amounts invested, provide a high degree of liquidity, and achieve a satisfactory investment return. Liquidity risk: Liquidity risk is the risk that the Foundation will not be able to meet a demand for cash or fund its obligations as they become due. The Foundation meets its liquidity requirements by monitoring cash flows from operations and anticipating investing and financing activities. 8.

COMPARATIVE FIGURES The comparative figures have been reclassified, where necessary, for consistency with current year disclosure.

2017 ANNUAL REPORT — 49

Pictures used throughout this report were captured by a variety of photographers including Wendy Davies and those affiliated with Golf Canada.

Members of the Team Alberta U19 Girls program at the 2017 Sun Life Financial Alberta Ladies Amateur Championship hosted at the Red Deer Golf & Country Club

Team Alberta High Performance Squad member Ethan Choi at the 2017 Sun Life Financial Alberta Menâ&#x20AC;&#x2122;s Amateur Championship hosted at the Ponoka Community Golf Club