ANNUAL REPORT 2016
Page 1
INDEX Office Bearers & Committee……………………………………………......
3
Captain’s Report ………………………………………………………........
4
Club Activities 2015/16.....……...…………………………………..…........
7
Statement of Profit or Loss and Other Comprehensive Income ....................
17
Statement of Financial Position .................................................................
18
Statement of Changes in Equity……………………………………..….......
19
Statement of Cash Flows……………………………………………………
20
Notes to the Financial Statement…………………………………….…......
21
Statement by the Committee……………………………………………......
35
Auditor’s Report…………………………………………………….…........
36
Statement of House Trading & Five Year Summary……………….…........
38
THE ROYAL ADELAIDE GOLF CLUB INCORPORATED 328 TAPLEYS HILL ROAD, SEATON SOUTH AUSTRALIA PO BOX 121, FINDON SOUTH AUSTRALIA 5023 TELEPHONE (08) 8356 5511 FACSIMILE (08) 8235 1064 email: ragc@royaladelaidegolf.com.au website: www.royaladelaidegolf.com.au
Page 2
OFFICE BEARERS AND COMMITTEE AS AT 29 FEBRUARY 2016
Patron
His Excellency The Honourable Hieu Van Le, AO Governor of South Australia
MEMBERS
ASSOCIATES
President
K C Perks
Mrs J S Rasmussen
Vice-Presidents
D A Cherry, AM D A Black A J Forbes, CMG, MC
Mrs M R Rex
Captain
A A McLachlan
Mrs E M Grant
Vice-Captain
T T Evans
Mrs A C Arnfield
Committee
J R Botten Mrs A M Coventry R A D Mills Mrs P Morrison T G Jordan Mrs A D Sykes P H Plummer Ms J Willoughby J L Sweeney E W Taylor Honorary Secretary Mrs J E Hugo
Delegates to Golf SA A A McLachlan Mrs E M Grant Public Officer A W Gay General Manager A W Gay Club Professional C E Howell
Page 3
2016 CAPTAIN’S REPORT
Captain’s Report (Angus McLachlan) The abbreviated summary of who will benefit from the membership embracing the year could be building, the (novel for RAGC) concept of borrowing for the borrowing, bunkering, and project. badgering. Club Architects Grieve Gillett have sympathetically But that does require some provided imposing new breezeways to enter the qualifying, given that the playing engine rooms of the Club, with all the ground building programme at the time of writing is not levels now being one, from upper level carpark, to finished, the Club has yet to begin to borrow due to ladies and men’s locker rooms, Professional Shop later than anticipated completion of the ladies long- and Sprig Bar. awaited showers, the bunkers on the new hole 17A Our Clubhouse from the front, looking out over the are still cavernous awaiting sand and the members’ course, continues to show all the attributes of our answers to the recent gender equality/membership long, piecemeal, architectural history, but leaping survey are still to be comprehensively evaluated. into modernity, function and visual appeal. As soon as one rounds the corner into the carpark. Gauging the success or otherwise of a year in a golf club requires a look across the many areas that Renaissance Golf Design (RGD) has been here most together, combine to make the whole. recently twice in February, completing a body of Above all else is the need for membership satisfaction work to enable Nathan and his team to ready the and enjoyment. course for the February 2017 Australian Womens Open. If Vice-President Jim Forbes at 92 is having the The Course Report will provide the details. occasional golf lesson with Cameron Howell, lunching and playing here three days a week, along The 19th (to be called 17A) hole fundraising was very with Brian Cornish, Ian Steele, Hugh Douglas, Eric successful enabling a wider area around the green to Willcocks, Alan Powell, John Skipper and any other be landscaped and turfed.The Committee is grateful nonagenarians overlooked, the club is still providing to those contributing to a necessary addition to for the needs of those with the longest involvement. our course armoury enabling the constant thrust (John Skipper was elected the same month the forward in pursuit of the best course Royal Adelaide Captain was born). can be. In addition there are twelve regular much younger The tax deductable Australian Sports Foundation male players aged between 85 and 89. Long may fund, the receptacle for your donations for the 19th they all continue. hole, remains in existence. It is available for any future project, when identified, whether for new The Stage 5 new building and renovations to the front gates, boundary fencing or other initiatives Professional’s Shop and lower carpark will have such as solar paneling the roof of the greenkeepers nearly/just been completed by the time you are sheds, with appropriate battery storage below. (A reading this. Asbestos is partly to blame for some sort of internal power station). Some iniatives such delays together with overly, possibly appropriately, as life size bronzes of past club officers would not be assiduous council engineers, but the spectacular contemplated. outcome already warrants close inspection by you all Page 4
2016 CAPTAIN’S REPORT
Captain’s Report .....Cont’d Speaking of batteries, the Cudmore Cannon came out of retirement to play and was fired at 8am on Opening Day to commence the shotgun start. Plans were put into place for more frequent use – for either firing one captain or as importantly, heralding the new. RGD these last three years have been involved in many changes. Apart from the 17th and 17A, none momentous, and certainly none with any definitive written design.Tim Evans, the Course Chairman, has moonlighted for them, effectively doing the concept sketches, gaining their approval, and then providing them for you to peruse. As you will have observed, their actual design methodology requires a hundred horsepower excavator underneath Brian Slawnik’s backside to get the creative juices running. They work from experience, golf intelligence and to some extent intuition. We have had great outcomes, Brian has developed a keen enthusiasm for our course and we expect the relationship to continue long-term. As an aside RGD (Tom Doak), and particularly Brian, have built a new course north of Auckland called Tara Iti. Opened in last October, the acclaim it is receiving from around the world is astonishing. We are in safe hands.
be the basis of a comprehensive revision of the Club’s Rules. This will enable, among other things, a greater involvement by women in the running of the Club’s affairs and an easier path to membership for juniors. I used the word “badgering” earlier. It was felt that the ladies would have embraced full membership as well as equality with high enthusiasm and that is yet to be widely identified. The above survey was an opportunity to replace intermittent, sporadic, sometimes confusing conversations (and attempted persuasions) with more concrete data, resulting from all members having input. More in the Membership and Rules Report. Membership, membership, membership. Into the future it is the greatest challenge for the Club. It is incumbent on us all to expand the waiting lists of men and women. Those of you in the 4060 year range will undoubtedly have friends and acquaintances that should be added to our waiting list. Cameron and Daniel in the Pro Shop have had a large number of very small prospective juniors under their tutelage which gives us confidence for the future, but we must remain vigilant.
Leading this Club has been an enthralling ride. That two SGM’s motions had 98% approval indicates That it was only the year before our upcoming the enthusiasm of the members for the Club to 125th Anniversary Celebrations, that a Special continue to develop. General Meeting was held to establish the principle of equality of genders across all the categories of To have two Managers of the energy, commitment membership seems regretfully tardy. That meeting and ability as we have in Andrew Gay and Nathan instructed the committee to examine the Rules to Bennett makes Captaincy a pleasure. The welcome improve the access to full membership for women. from Elizabeth and Tony and their staff at the Club The Membership and Rules Sub-Committee and must make you feel like you are coming home. If expanded working party, both under the energetic not have a word with your spouse. guidance of Jim Sweeney have canvassed the ideas widely with the imminent results of a survey to Tim Evans and Jim Sweeney have led various SubPage 5
2016 CAPTAIN’S REPORT
Captain’s Report .....Cont’d Committees with diligence and good outcomes; the balance of your Committee has been actively supportive of all of our endeavors. I am grateful for their indulgence and patience at sometimes overlong monthly meetings.
offer, it is to little effect. We are a welcoming Club having discarded the exclusivity we were once known for, replacing it with inclusivity. It has always been a vibrant place to be part of. With the increased member utilisation, especially the ladies on Thursdays, it vibrates more than ever. But it is you the members who make this Club what With our commitment to the Australian Womens it is. Open next February, there is a great opportunity to We have a great course, getting better, similarly build that further with the widespread consequent with our Clubhouse and our finances are stable. exposure. Without members’ enthusiasm for all that is on
We would like to welcome the following new members to RAGC who were elected in 2015 : Kym Bartel John Bond William Britten-Jones Graham Brown Robert Cameron Robert Ferguson Eric Granger Neville Green Craig Hargraves Gregory Hearn Richard Huebl Clive Hume John Kerr Andrew Kuchel Malcolm Morrison Wade Ormsby Wayne Phillips Andrew Shepherd Roger Stables GrahamVasileff Terry Zander
James Jordan Johnathon Kopania(ex Junior) Janis Laurs Andrew Lee Bradley Manton(ex Junior) Ian Newcombe(ex Junior) Mandy Ayres Teresa Birdseye Anne Clough Heather Doolette Kim Hilditch Sam Hordern Pamela Lawson Christine Lienert Darlene Newitt Susan Pentalow Annie Porter(ex Junior) Deborah Susman Jan Whitford
Angus Booth Guy Dawson Arata Gwinnett(ex Junior) Edward Hewitson(ex Junior) George Highfield(ex Junior) Edward Holmes(ex Junior) Timothy Holmes(ex Junior) Page 6
CLUB ACTIVITIES 2015/16
Associates’ President’s Report (Sally Rasmussen) As I write my Report for the Calendar Year of 2015, the Club is simply ‘abuzz’ with activity – both within and without. However, I am ahead of myself! It was a privilege and delight to have our new Patron Mrs Le, wife of our Governor, His Excellency the Honorable Hieu Van Le, with us on Opening Day, which was attended by many enthusiastic Associates, ready to embrace the new golfing season.
club has been proactive in this area, along with our Golfing Professional, Daniel Blackwell. They have endorsed many options put forward. Innovation has been at the forefront and Associates have been most fortunate in having enthusiastic ‘Membership Initiative’ Sub-Committee members managing this role since the membership drive began. Interclub Pennant and Cleek competitions were contested over the winter months. Pennant teams (A1 and A3) had team managers for the first time – Didy McLaurin and Cathy McAuliffe respectively. Both teams were extremely grateful for their help and dedication. I am certain that this system will be followed in ensuing years. The dedication to practise and to the clinics by squad members is to be admired and we are grateful for their efforts, time and participation.
Early each March a President’s and Captain’s lunch is held at one of the main 4 sand belt clubs ie: Royal Adelaide, The Grange, Kooyonga and Glenelg. 2015 saw The Grange host this event. It is a great opportunity to exchange all relevant issues concerning Womens’ golf and proves a valuable sounding board for ideas concerning our clubs. Another wonderful ‘End of Season Pennant Party’ was held at Captain, Steph Evan’s home. One of the most popular events on our calendar, always a sell-out, is our Club Dinner, which Our Charity Golf Day was held in July. The is followed by the Centenary Bowl Golf 4BBB chosen charity was The Jodi Lee Foundation for the competition the following day. Rachel Sporn prevention of bowel cancer. Associates embraced OAM, a former Olympian, was our guest this cause and vied for all the wonderful donated speaker. We were given an amazing insight into prizes on offer. All proceeds went to the Foundation. life at the top of an elite sport, in Rachel’s case, basketball, and the sacrifices involved. Very An extremely popular and successful afternoon was entertaining, she held us all absolutely enthralled. our Veterans Lunch in August, which by popular demand was opened to all Associates for the first We saw 6 new Associates elected in May and a time in 2015. Our special guest was Ali Coventry welcome morning tea was held to introduce them whose nursing career spanned some 47 years, to the Club. It is the first year since 2006 that two mainly in ‘critical care nursing,’ culminating in a Associate Elections were held, the second one managerial position at the RAH. It was set as an being in October, when another 6 became Associate interview and we went on an incredulous journey members. (sometimes to hell and back) with Ali, and learnt just what went on behind the doors of the ICU. Attracting new membership at Royal Adelaide has been of paramount importance over the last few Our Duplicate Bridge Day is proving increasingly years, as indeed it has been not only in Australia, but popular – with two tiers, being ably managed by worldwide. We have been most fortunate that the Linda Alexander from SABA, assisted by an RAGC Page 7
CLUB ACTIVITIES 2015/16
Associates’ President’s Report .....Cont’d bridge ‘guru’ Heather Motteram.
We are extremely grateful to you all for your outstanding service to the Associates.
Guest Day continues to be a most popular and relaxed day, always a ‘full-house’ with many The New Members Dinner was attended by both Metropolitan and Country players participating. Members and Associates with their corresponding proposers, seconders and referees. The Royal Challenge was played at Royal Melbourne in 2015. The Tripartite - played between the In the same month we saw 6 Associates joining the Committees of Royal Melbourne, Royal Sydney very elite ‘Club’ of 50 year membership!! and Royal Adelaide – is always another great opportunity to share information, ideas and issues Festive spirit is ‘aplenty’ with the Associates common to all three clubs. The Mona McLeod Christmas Golf and Lunch, our ‘wind-up’ function Cleek is always fiercely contested, along, I might say for the year. Always enormous fun and at times with the entertainment!! 2016 sees RAGC hosting quite hilarious, it is very much enjoyed by everyone present. this event. It was a delight to host the biennial Past Captain’s One of our greatest assets at Royal Adelaide, is and President’s luncheon in September. It was held our staff, under the management of Andrew Gay. in the Associate’s Committee Room, which proved a nostalgic venue for all present. So many combined hours, days, and weeks, totalling up to years, had been spent by all those present, in this location!
Paul Stuchbery, our Associate Golf Co-ordinator, is an invaluable asset to overseeing our programme. Abundant thanks go to our Administrative, Kitchen, Dining and Bar staff, along with The Associates’ Annual Meeting was held in those in the Pro Shop and out on the Course. October. I invited Angus McLachlan, the Members’ I end, where I began, excited by what 2016 will Captain, to speak to the Associates about the drive bring. for equality of membership for women at RAGC. He was available to answer any questions that were The completion of Stage 5 of our Building Plan. put forward. The ISPS Handa Womens Golf Open at The Grange We farewelled our outgoing Captain Steph Evans, Golf Club (Hosted by Royal Adelaide in 2017 - our th who has given outstanding service over 7 years 125 Anniversary year). in a leadership position to the Associates and the Our 19th Hole (now known as 17A). Club. With a steady hand on the wheel, she guided us sensibly and safely through an extremely busy Design and layout alteration of several key golf golfing programme with prowess. Thank you Steph. holes. Outgoing Committee members, Julie Michelmore, We are all indeed most fortunate! Julie Downer and Denise Le Messurier, were invaluable. Always enthusiastic and willing to undertake any given tasks. Page 8
CLUB ACTIVITIES 2015/16
Junior Development - Michael Jay Having a well structured, financed Junior Development Programme is essential to the long term viability of Royal Adelaide Golf Club. We lag behind many others around the country and certainly other tier one Clubs in Adelaide. Over the past 12 months the JD Sub-Committee has proposed significant changes to existing rules pertaining to both male and female juniors that will be put to the membership of the Club at the AGM in June. If approved, By law changes can then be more easily fashioned to complement the entire junior golf experience for any incoming member. The proposed tiered junior membership will be competitively priced, comparable to other clubs and have incentive options to join with a substantially reduced entrance fee. Included will be clinics, lessons and regular competitions in an effort to have RAGC enter teams in Golf SA Junior Interclub competitions.
has been instrumental in putting all this together along with the tirelessly enthusiastic Paul Reader. Daniel Blackwell`s Little and Big Hitter Clinics on Saturdays are oversubscribed and it is hoped that many of these boys and girls can be signed up for junior membership in the forseeable future. I would like to acknowledge the significant contribution of current junior member and Pennant player Alex Pacifico to these clinics as well as Tony Christie another recently appointed Pro Shop staff member.
A successful Family Fun Day was attended by 50 children and adults on Sunday February 28th. The Term 1 and 4 School Clinics involving St. Peter`s College have more than 20 boys with golf as their primary sports option. Wilderness and St Michael`s are visited for introductory lessons with plans to expand this to other schools shortly and eventually an interschool competition. Boo Lange and Sophie Hilditch have been other active participants to the JD Sub-Committee and Our Golf Operations Coordinator, Chris Crocker have our thanks for their contribution.
Page 9
CLUB ACTIVITIES 2015/16
Membership & Rules (Jim Sweeney, Chairman) Whilst it may appear on the surface that nothing much has happened in membership there has been considerable groundwork done by a committed Working Party. The Working Party had been considering future membership options leading to a Special General Meeting in December, which approved the Committee to establish a gender equal structure and to prepare draft changes to the rules to reflect that. The Committee’s stated preferred option was for one gender equal category of membership however the informal membership feedback suggested that this be reconsidered. Further work by the working party identified that a two-tiered system may be a viable alternative. As a result a membership survey was developed and sent to the membership. At the time of this report the
survey was still open and the results not known. It is hoped that the survey will provide a clear direction for the committee to develop the draft changes to the Rules prior to discussion with the membership and subsequent vote at SGM. All membership categories are to be reviewed in this process, which will require a major rewrite of the Club Rules. The Junior Development Sub-Committee under the Chairmanship of Michael Jay has put forward proposed changes to junior membership, which will hopefully result in a vibrant junior program with increased junior member numbers as well as the facilitation of transition to ongoing adult membership.The considerable effort of Paul Reader is to be acknowledged.These proposed changes have been approved by the committee and will be taken to the AGM for approval, as we believe that these changes should be implemented as soon as possible without waiting for the full membership review.
2015/16
2014/15
2013/14
Category
Members
Associates
Members
Associates
Members
Associates
Ordinary
491
297
500
302
497
316
Honorary Life Life
3 15
3 10
3 17
3 10
3 17
2 11
Veteran (all categories) Under 31 Professional Country
30 50
40 5 1 16
28 48
35 5 1 16
29 39 2 20
35 7 3 15
Absentee Absentee Long-Term Temporary Social Non-Playing Member Through Service Junior Qualifying Junior Clergy TOTAL
97 48 2 69 105 2 42 5 1 979
25 18
106 44 4 62 114 2 47 7 1 1002
30 19 1 10 89
123 45 4 63 113 2 41 8 2 1008
33 18 1 7 81
19
12 80 2
509
19
Page 10
3
524
5
534
CLUB ACTIVITIES 2015/16
Membership & Rules Report .....Cont’d The Associates Committee continue to be active strong message from the Committee. It is hoped that in the recruitment of new Associates via their future structural changes to the membership will programs with promising results. enhance the attractiveness of RAGC for potential new members. We continue to believe that a healthy waiting list is important in the ongoing strength of our Club. In closing I would like to thank Deb Smith for her Identification of potential new members who are ongoing contribution towards managing the Club’s subsequently added to the waiting list remains a membership.
2015 TOURNAMENT WINNERS
The following members have played with distinction during 2015 and are hereby acknowledged for their achievements. Club Champion Patric Kroschel Runner-Up Billy Cawthorne B Grade Champion Geoff Webster C Grade Champion David Crotti Seniors Champion Tim Evans Veterans Champion David Cherry Junior Champion Patric Kroschel
Associates’ Club Champion Juliet Hugo Runner-Up Edwina Grant Associates Bronze Cup Boo Lange Associates C Grade Champion Marie Stacy Associates Junior Champion Not played Members’ Foursome Champions Ian Rice & Tyron Davies Club Mixed Foursome Champions Tim and Vicki Jordan Associates’ Foursome Champions Shylie Yelland and Jenny Sowton
VALE The Committee records with regret the death of the following members during 2015/16:Hon H J Burton Mrs J M Tallis Sir Samuel Burston A D Webster
Sir Dennis Paterson Mrs A J Porter J V S Bowen Miss I K Esau Page 11
CLUB ACTIVITIES 2015/16
Course Report (Tim Evans, Chairman) This past year we commenced a new programme for course maintenance, particularly in regard to the greens. Hollow coring and sanding has been replaced with needle tining and dusting on a more regular basis, members have long lamented that no sooner have we got the greens up to a standard we all enjoy, that we then set to and core them with a recovery period often longer than hoped and always being subject to the variances of Spring weather. The needle tining is less invasive and will significantly quicken recovery. Similarly tee, apron and fairway renovations have now all been bundled into the one period in September, again enabling the course to present at its best in the Spring and Summer period.
• The construction of the much anticipated 19th hole (henceforth to be called 17A). • 15th tee complex and 14th green surround. • 15th greenside bunker. • Removal of bunkers on the 14th drive. • 9th and 10th greens side mounding. And most recently: • The 13th tee complex. • 12th green surrounds • 2nd tees The Committee has received very positive feedback on all of these works, and sincerely thank the membership for their continued support and patience through these construction periods.
The introduction of the latest Toro operating software for irrigation programming has delivered The 17A hole in particular would not have been significant efficiencies both to the irrigation of the possible without the generosity of the many course, and the time required in programming. members and their donations through the Australian Sports Foundation. With these initiatives the course continues to We anticipate an opening of the “17A” in the middle improve and it is now presenting at a consistent of the year and plans are underway to make this standard across the full 18 holes. This all despite occasion a memorable one. a significant number of construction projects undertaken during the course of the year. I wrote of the “conversation” we are having with RGD, in last year’s report, and the way this As in previous years, we have handled the bulk of description best describes their approach to their the construction work “in-house” with Nathan and work and their relationship with their clients, all his team continuing to develop a strong, enthusiastic started with the work on our “national treasure”: 3rd and mutually respectful relationship with our Hole. We can report the “conversation” continues Course Architect, Brian Slawnik of Renaisance Golf with confidence and expectation for the future. Design. Other minor works, which have reinforced the RGD The construction works programming happily could design work include significant fairway expansion not have been timed better with the 5th fairway and which Nathan estimates we now have taken from green complexes completed last Autumn, and this 11 to 14 hectares and includes expansion to the season: following holes: Page 12
CLUB ACTIVITIES 2015/16
Course Report .....Cont’d 2, linking 3 & 4, 5. Linking 5 and 6, 10th Apron, 11th grounds staff, bringing further efficiency to training on the drive, 12, linking 14 and 15. and team building. On reflection, a daunting amount of work but handled with skill and enthusiasm by our team. Nathan’s commitment to his team meant a number of capital “plant” acquisitions has been pushed into future years to enable the construction of a larger lunch room to house our full complement of
We now look forward to the cessation of any further construction work on course to ensure the new works bed seamlessly into the rest of the course and to present the course at its very best for the Australian Women’s Open in February next year which heralds in our 125th year.
Hole 17A
Page 13
CLUB ACTIVITIES 2015/16
Match & Pennant Report (Richard Mills, Chairman) Appropriately, golf at Royal Adelaide remained strong in 2015 as evidenced by the number of rounds played by members and visitors. A total of 30,710 member rounds and 5,847 visitor rounds were played.This is no doubt a reflection of the extremely well maintained design and quality of our course. With Clubhouse and Pro Shop renovations nearing completion, Royal Adelaide will continue to be one of Australia’s premier golfing experiences, and our membership should be very proud of this fact. Participation in Trophies & Events has been strongly supported by members and guests, and the calendar for the year is near capacity. Team and mixed events are always a good way of bringing members together. The now popular Royal Premiership Challenge is upgrading this year with a preseason dinner and Calcutta event in May. An Order of Merit will be conducted over the season for members playing on Wednesdays and Thursdays.
Pennant Simpson Cup There was a slow start to the season, with a rally late to finish fifth on the ladder with two wins.The winner of the Guy Lendon Trophy for the most successful player in the Senior Pennant Team was Matt Lawson. Bonnar Cup The team had some close losses towards the end of the season and unfortunately finished eighth. This means relegation to the B2 Division for 2016 and no doubt a strong desire to have a good season and get back into B1. The winner of the AP Hutton Cup for the most successful player in the B Pennant Team was Josh Groom. Special thanks to Team Managers Rod Phillips and James Bennett, coaching professionals Cameron Howell and Daniel Blackwell and all the loyal caddies who give up their time for the players and the club. As the RAGC website continues to improve it is becoming the best way to keep up to date with events, functions, course changes and activity around the club. Both general news and individual pages can provide members with all their day to day golfing information. Likewise the regular email-news Royal Golf Matters will keep members updated with current events and competitions.
Another popular new initiative has been the Railway Comp, an additional Saturday ball competition decided over the last 5 holes when play is from the white tees. More 9-hole competitions will be introduced this year to encourage those members who are time poor and still wish to Finally I would like to thank Chris Crocker our new play competition golf and maintain a handicap. Golf Operations Manager who has made an instant impression around the club with his friendliness The Club Championships were well supported and enthusiasm. And an equally big thanks to Paul in all grades in 2015. Congratulations goes to Stuchbery who has moved from Golf Operations to our Club Champion Patric Kroschel who made Associates Golf Coordinator. it back to back success with a strong win over a quality opponent in Billy Cawthorne. Let’s hope both of these exciting young men can continue their good form into the Pennant Season. Page 14
CLUB ACTIVITIES 2015/16
Club Facilities Report - Tim Evans Through the course of the last year, the membership would have been able to observe firsthand the progress of the Clubhouse Stage 5 Redevelopment. By the time this report reaches you, the finishing trades will be well underway on this much anticipated project.
impressions of Royal Adelaide. The full length verandah to the facades of both locker rooms now provides covered access to the key entry points and a contemporary expression of the return verandahs, which are such an admired feature of the existing Clubhouse. • Lower level Carpark
Has been completed to the same standard of the The works have included the upgrade and previously completed upper level carpark, again by our contractors, Fulton Hogan, and in time for construction of the following: the beginning of the golfing season. Landscaping has commenced with shade trees planted to both • Pro Shop carparks and will provide a unified attractive The floor of which has been raised by over half a appearance to the Clubhouse entries as a whole. metre to bring it in line with the floor levels of the rest of the Clubhouse. • Breezeway Which now links the Clubhouse to the upper level carpark, all locker rooms, bag store, and Pro Shop. This all-weather glazed structure can be secured after hours, and against inclement weather. • Associates Locker Room A totally new build that will again set the bench mark for golf club locker rooms. • Buggy Store and Cart Store A full basement cart store under the Associates locker room with adjacent archive storage areas and a self-serve “bags on buggies” store, with direct ramp access off the breezeway which will enable after hour’s access to clubs for twilight golf, etc.
Our architects, Grieve Gillett Anderson and builders, Partek have programmed the works to enable the Club to continue our operations with little or no disruption which we are very grateful for! But the end is nigh! And in time for our 125th year, the Committee again thanks you for all your patience and understanding.
• Clubhouse Entry and Associates Verandah Stage 5 has provided the platform to address the Clubhouse entry, which had long been considered rather utilitarian, for members and visitors’ first
Page 15
CLUB ACTIVITIES 2015/16
Finance & Planning (Phil Plummer, Chairman) Foundation The creation of the ASF Foundation for the construction of a 19th hole has been a success with a net $102,965 being contributed. This has resulted in the construction work being brought forward by a number of years.
The delay in the completion of the Clubhouse Redevelopment and the receipt of the subscriptions for the 2016/17 year have resulted in no borrowings being required to date. Cashflow is being closely monitored and flexible borrowing arrangements will minimise future borrowing costs. The Clubhouse Redevelopment, despite the usual surprises of asbestos and forgotten equipment, is expected to be The Foundation is on-going and the Committee in line with projected cost. wishes to identify projects which may be of interest to our members. House trading has been satisfactory and the Club continues to receive compliments with respect Financial Results to the quality and presentation of the food and The surplus for the year of $420,597 has been beverages. Tony Upton, Nigel Munzberg and staff enhanced by the inclusion of Foundation donations continue to provide excellent service with a close of $102,965. The improvement in the operating eye on costs. surplus of $320,569 (2015 $225,280) has been due to an increase in golf sales of $65,210 and entrance The wish list of capital projects is significant and fees of $51,846 whilst containing expenses to be in includes course preparation and wet area upgrades line with the prior year. for the Australian Womens Open in 2017, upgrading the entrance to Tapleys Hill Road, course furniture Links expenditure has been well controlled by the and perimeter fencing. course manager, Nathan Bennett. Andrew Gay, Craig Sullivan Brook and the Capital expenditure for the year was $2,155,499. AdministrationTeam continue to provide an efficient and friendly service and I thank them and fellow Major completed works included:Finance Committee members for their support. Course Equipment $ 120,479 Clubhouse Equipment $ 20,099 Driving Range Synthetic Turf $ 16,885 Work in Progress:Clubhouse Redevelopment $1,646,785 Car Park Upgrade $ 271,338 19th Hole (17a) $ 74,099 Page 16
statement of profit or loss and other comprehensive income for the year ended 29 february 2016 Note
2016
2015
$
$
REVENUE Membership
2.1
2,953,139
2,814,128
Golfing Activities
2.2
453,159
399,644
(21,496)
1,640
House Trading (Net) Miscellaneous Income
2.3
199,095
169,005
Entrance Fees
2.4
238,750
186,904
3,822,647
3,571,321
Total Income EXPENSES Links
3.1
1,752,597
1,737,736
Clubhouse
3.2
451,338
441,439
Administration
3.3
1,287,300
1,151,226
11,850
15,640
3,503,085
3,346,041
OPERATING SURPLUS FOR YEAR
319,562
225,280
Royal Adelaide Golf Club Foundation - Donations
101,035
-
OPERATING SURPLUS FOR YEAR AFTER FOUNDATION DONATIONS
420,597
225,280
-
-
420,597
225,280
Audit Fee
4
Total Expenses
Other Comprehensive Income TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Page 17
statement of financial position as at 29 february 2016
Note
2016 $
2015 $
Cash and Cash Equivalents
5
2,081,754
2,466,045
Trade and Other Receivables
6
125,108
94,547
Inventories
7
203,252
193,868
Deferred Entrance Fees & Subscription Fees
8
58,433
78,803
Other Current Assets
9
164,333
72,266
2,632,880
2,905,529
ASSETS CURRENT ASSETS
TOTAL CURRENT ASSETS NON-CURRENT ASSETS Deferred Entrance & Subscription Fees
8
91,495
109,922
Property, Plant, Equipment & Trophies
10
10,451,821
8,842,348
TOTAL NON – CURRENT ASSETS
10,543,316
8,952,270
TOTAL ASSETS
13,176,196
11,857,799
LIABILITIES CURRENT LIABILITIES Trade and Other Payables
11
1,202,091
496,386
Short-Term Provisions
12
484,800
394,256
Unearned Income
13
1,804,902
1,642,002
Finance Lease Liability
14
-
40,245
3,491,793
2,572,889
32,318
53,422
32,318
53,422
TOTAL LIABILITIES
3,524,111
2,626,311
NET ASSETS
9,652,085
9,231,488
Retained Earnings
9,652,085
9,231,488
TOTAL EQUITY
9,652,085
9,231,488
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-Term Provisions
12
TOTAL NON-CURRENT LIABILITIES
EQUITY
Page 18
statement of changes in equity for the year ended 29 february 2016 $ Balance as at 1 March 2014
9,006,208
Total Surplus for the Year 2014/15
225,280
Other Comprehensive Income for the Year 2014/15
-
Balance as at 28 February 2015
9,231,488
Balance as at 1 March 2015
9,231,488
Total Surplus after donations for the Year 2015/16
420,597
Other Comprehensive Income for the Year 2015/16
-
Balance as at 29 February 2016
9,652,085
Page 19
statement of cash flows for the year ended 29 february 2016
Note
CASH FLOWS FROM OPERATING ACTIVITIES Subscription Receipts Entrance Fees & Donations Receipts from Trading Interest Received Lease Repayment Payments to Suppliers & Employees
2016
2015
$
$
3,045,663 277,550 1,751,564 38,666 (40,245) (3,314,681)
2,697,075 321,600 1,644,926 45,395 (17,944) (4,516,187)
1,758,517
174,865
CASH FLOWS FROM INVESTING ACTIVITIES Payments for Property, Plant & Equipment Proceeds on Property, Plant & Equipment Sales
(2,155,500) 12,692
(392,317) 11,409
Net Cash Used In Investing Activities
(2,142,808)
(380,908)
(384,291) 2,466,045
(206,043) 2,672,088
2,081,754
2,466,045
Net Cash Provided By Operating Activities
15b
NET (DECREASE)/ INCREASE IN CASH Cash at the beginning of the financial year CASH HELD AT END OF FINANCIAL YEAR
15a
Page 20
notes to the financial statement for the year ended 29 february 2016 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report covers Royal Adelaide Golf Club Inc. as an individual entity. Royal Adelaide Golf Club Inc. is a body incorporated in South Australia under the Associations Incorporations Act (SA) 1985. Basis of Preparation This financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporations Act (SA) 1985. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated. The financial report has been prepared on an accruals basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The financial statements for the year ended 29 February 2016 were approved and authorised for issue by the Committee on 27 April 2016. New Accounting Standards and Interpretations Certain new accounting standards and interpretations have been published that are not mandatory for current reporting periods. The Club’s assessment of the impact of the new standards and interpretations is that there would be no material impact on the reported financial information. Accounting Policies a. Income Tax The Club is exempt from Income Tax pursuant to the provisions of Section 50-45 of the Income Tax Assessment Act, 1997. b. Inventories Inventories are measured at the lower of cost and net realisable value. c. Impairment of Assets At each reporting date, the Club reviews the carrying values of its tangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value-in-use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and Other Comprehensive Income. Where it is not possible to estimate the recoverable amount of an individual asset, the Club estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Page 21
notes to the financial statement for the year ended 29 february 2016 d. Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. The carrying amount of plant and equipment is reviewed annually by Committee Members to ensure it is not in excess of the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present value in determining recoverable amounts. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefit associated with the item will flow to the Club and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of profit or loss and other comprehensive income during the financial period in which they are incurred. e. Depreciation The depreciable amount of all fixed assets are depreciated on a diminishing value basis over the useful lives of the assets to the Club commencing from the time the asset is held ready for use. The Depreciation Rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Buildings 2% - 20% Plant & Equipment 7.5% - 25% Furniture, Fittings, Plant 5% - 33% Trophies Nil The assets’ residual value and useful life are reviewed and adjusted if appropriate, at each balance date. An asset carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount.These gains and losses are included in the Statement of Profit or Loss and Other Comprehensive Income. Land The Club’s land was acquired in 1904 and has not been subject to any revaluation adjustments. Its carrying value is nominal. Maintenance All routine maintenance and minor course redevelopment costs are expensed in the year incurred. f.
Financial Instruments Recognition and Initial Measurement Financial instruments, incorporating financial assets and financial liabilities, are recognised when the Club becomes party to the contractual provisions of the instrument. Financial instruments are initially measured at fair value plus transaction costs where the instruments are not classified as at fair value through profit or loss. Transaction costs related to instruments classified as at fair value through profit or loss are immediately expensed to the Statement of Profit or Loss and Other Comprehensive Income.
Page 22
notes to the financial statement for the year ended 29 february 2016
g.
h. i.
j.
Derecognition Financial assets are derecognised where the contractual rights to receipts of cash flows expire or the asset is transferred to another party whereby the Club no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in the Statement of Profit or Loss and Other Comprehensive Income. Classification and Subsequent Measurement Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost using the effective interest rate method. Financial Liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost using the effective interest rate method. Impairment At the reporting date, the Club assesses whether there is objective evidence that a financial instrument has been impaired. Employee Entitlements Provision is made for the Club’s liability for employee benefits arising from service rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. These cashflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows. Contributions are made by the Club to an employee superannuation fund and are charged as expenses when incurred. Cash and Cash Equivalents Cash and cash equivalents includes cash on hand and cash on deposit with financial institutions. Revenue Annual subscriptions are recognised in the subscription year to which they relate with amounts received prior to 29 February being recorded as unearned income at year end. Entrance fees are recognised at the point the member joins the club. Dining room levies charged to members but unused at the year-end are absorbed into general revenue. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax. Trades and Other Payables Trade and other payables represents the liability outstanding at the end of the reporting period for goods and services received by the entity during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. Page 23
notes to the financial statement for the year ended 29 february 2016 k. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the AustralianTax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. l. Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current year. m. Critical Accounting Estimates and Judgements The Committee members evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Club. n. Contributed Assets Royal Adelaide Golf Club receives non-reciprocal contributions of assets from external parties from time to time. These assets are recognised at a fair value on the date of acquisition in the Statement of Financial Position, with a corresponding amount of income recognised in the Statement of Profit or Loss and Other Comprehensive Income. 2016 2015 $
$
NOTE 2: REVENUE 2.1 Membership Subscription Received
2,876,108
2,748,597
Other Membership Revenue Locker Fees Waiting List Fees
43,639 27,892 5,500 2,953,139
32,042 28,239 5,250 2,814,128
50,125 403,034 453,159
46,190 353,454 399,644
2.2 Golfing Activities Buggy Hire Green Fees
Page 24
notes to the financial statement for the year ended 29 february 2016 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
2.3 Miscellaneous Income Interest Income Profit on Fixed Asset Disposals Sponsorship Sundry Income Unused Dining Room Levies 2.4 Entrance Fees Entrance Fees
2016 $
2015 $
32,666 1,930 8,186 103,911 52,402 199,095
50,074 4,462 13,514 36,867 64,088 169,005
238,750
186,904
Income from entrance fees is dependent on the number of vacant positions available on the membership list. The availability of positions is regulated by Club Rule No 6. NOTE 3: SURPLUS FOR THE YEAR Surplus has been determined after: 3.1 Links Depreciation 330,218 337,749 Improvements Links Maintenance Plant, Fuels & Repairs Wet Land Expenses Sundry Expenses Utilities Wages & Related Costs 3.2 Clubhouse Course Residence Clubhouse Maintenance & Repairs Clubhouse Utilities Depreciation Pro-Shop Maintenance & Repairs Wages & Related Costs
94,645 202,440 82,422 28,419 28,219 68,365 917,869 1,752,597
56,411 221,669 87,869 48,878 29,608 60,618 894,934 1,737,736
712 223,414 107,207 59,955 3,600 56,450 451,338
5,262 211,186 115,368 47,445 6,460 55,718 441,439
379,819
315,113
143,162
143,800
2,936
-
9,599
8,534
133,566
122,474
618,218
561,305
1,287,300
1,151,226
3.3 Administration
Club/Office Administration Depreciation Loss on Fixed Asset Disposals Pennant Costs Professional’s Retainer & Commission Wages & Related Costs Page 25
notes to the financial statement for the year ended 29 february 2016
NOTE 4: AUDIT FEE Audit Fee NOTE 5: CASH AND CASH EQUIVALENTS Cash at Bank and On Hand Short Term Deposits
NOTE 6: TRADE AND OTHER RECEIVABLES Trade Debtors Less Provision for Doubtful Debts
NOTE 7: INVENTORIES Stock on Hand – at Cost NOTE 8: DEFERRED ENTRANCE FEES CURRENT Entrance Fees
NON CURRENT Entrance Fees NOTE 9: OTHER CURRENT ASSETS Accrued Interest Accrued Income Prepayments
Page 26
2016 $
2015 $
11,850
15,640
1,424,329 657,425 2,081,754
1,313,124 1,152,921 2,466,045
128,758 (3,650) 125,108
98,197 (3,650) 94,547
203,252
193,868
58,433 58,433
78,803 78,803
91,495
109,922
29,466 134,867 164,333
6,000 66,266 72,266
notes to the financial statement for the year ended 29 february 2016
NOTE 10: PROPERTY, PLANT AND EQUIPMENT & TROPHIES
2016 $
2015 $
686 686
686 686
8,387,188 (2,514,251) 5,872,937
6,373,146 (2,371,089) 4,002,057
1,001,477 (757,850) 243,627
1,009,854 (697,895) 311,959
4,450,875 (2,284,811) 2,166,064
4,375,202 (2,069,726) 2,305,476
844,094 1,471,780 (223,047) 2,092,827
844,094 1,471,780 (169,384) 2,146,490
75,680 75,680 10,451,821
75,680 75,680 8,842,348
Land Buildings & Improvements – at cost Less accumulated depreciation Clubhouse Furniture & Fittings – at cost Less accumulated depreciation Links Plant — at cost Less accumulated depreciation ASR Project – at cost Contributed Amount – at fair value Less accumulated depreciation Trophies — at valuation (1991) TOTAL PROPERTY, PLANT & EQUIPMENT
Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.
Balance at the 1 March 2015 Additions Disposals Depreciation expense Carrying amount at 29 Feb 2016
ASR Project $ 2,146,490 (53,662) 2,092,828
Land & Buildings
$ 4,002,744 2,020,794 (143,163) 5,880,375
Plant & Equipment (Course) $ 2,305,476 112,514 (12,692) (268,433) 2,136,865
Furniture, Fittings, Plant & Trophies $ 387,638 22,192 (68,077) 341,753
Total $ 8,842,348 2,155,500 (12,692) (533,335) 10,451,821
a) Additions: Plant & Equipment (Course): Gator, Pedestrian corer, Lynx Water System Upgrade, Rollers x 3 Furniture & Fittings: Kitchen Dishwasher, Bar Ice Machine, MiScore Hardware Buildings: Clubhouse Redevelopment Stage 5, Hole 17a, Carpark, Shed Lunchroom Upgrade Total
Page 27
112,514 22,192 2,020,794 2,155,500
notes to the financial statement for the year ended 29 february 2016 NOTE 11: TRADE & OTHER PAYABLES Trade creditors and accruals GST Payable to the ATO
2016 $
2015 $
1,123,483 78,608 1,202,091
345,516 150,870 496,386
Trade and other payables represents the liability outstanding at the end of the reporting period for goods and services received by the entity during the reporting period, which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
NOTE 12: PROVISIONS Current Provision for employee entitlements Annual Leave Long Service Leave Other Provisions
Non – Current Provision for Long Service Leave Total Provisions Number of employees at year end NOTE 13: UNEARNED INCOME Subscriptions Paid In Advance Prepaid Green Fees & Other Events
Page 28
186,203 279,557 19,040 484,800
154,123 224,459 15,674 394,256
32,318 517,118
53,422 447,678
35
33
1,792,788 12,114 1,804,902
1,628,002 14,000 1,642,002
notes to the financial statement for the year ended 29 february 2016
2015 $
-
40,245 40,245
54,166 1,370,163 657,425 2,081,754
38,138 1,274,986 1,152,921 2,466,045
Current Liabilities Finance Lease Liability
b. Reconciliation of net cash provided by operating activities to surplus for the year. Operating Surplus 420,597 Add (Deduct) Non Cash Items Depreciation 533,335 (Profit) on Sale of Equipment Changes in Assets and Liabilities (Increase)/Decrease in Trade and Other Receivables Increase/(Decrease) in Unearned income Decrease in Entrance Fees Outstanding (Increase) in Inventories Increase/(Decrease) in Trade and Other Payables (Increase) in Other Assets Increase in Provisions Net Cash Provided by Operating Activities
(30,561) 162,900 38,800 (9,384) 665,460 (92,070) 69,440 1,758,517
c. The Club has $2,500,000 of unused finance facilities in place with the ANZ bank.
Page 29
2016 $
NOTE 14: FINANCE LEASE LIABILITY
NOTE 15 CASH FLOW INFORMATION a. Reconciliation of Cash Cash on Hand Cash at Bank Short Term Bank Deposits
225,280 528,994 (4,462)
46,139 (137,360) 134,696 (10,701) (578,299) (36,777) 7,355 174,865
notes to the financial statement for the year ended 29 february 2016 NOTE 16: FINANCIAL RISK MANAGEMENT Financial Risk Management Policies The Club’s financial instruments consist mainly of deposit with banks, accounts receivable and payable. The Club does not have any derivative instruments at 29 February 2016. i. Treasury Risk Management A Finance Committee consisting of Committee Members meets on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts. The Committee’s overall risk management strategy seeks to assist the Club in meeting its financial targets, whilst minimising potential effects on financial performance. The Finance Committee operates under policies approved by the General Committee members. Risk management policies are approved and reviewed by the Committee on a regular basis. These include the use of credit risk policies and future cash flow requirements. ii. Financial Risk Exposure and Management The main risk the Club is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. Interest rate risk Interest rate risk is managed with floating rate deposits. Foreign currency risk The Club is not exposed to material fluctuations in foreign currencies. Liquidity Risk Liquidity risk arises from the possibility that the Club might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. The Club manages this risk through the following mechanisms: · Preparing forward-looking cash flow analysis in relation to its operational, investing and financial activities; · Only investing surplus cash with major financial institutions; and · Proactively monitoring the recovery of unpaid subscriptions. The tables on the next page reflect an undiscounted contractual maturity analysis for financial liabilities. Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle finance leases reflects the earliest contractual settlement dates.
Page 30
notes to the financial statement for the year ended 29 february 2016
NOTE 16: LEASE LIABILITY (CONT) Financial liability and financial assets maturity analysis: Within 1 Year 2016 2015 $ $
1 to 5 Years 2016 2015 $ $
Over 5 Years 2016 2015 $ $
Total 2016 $
2015 $
Financial liabilities due for payment Trade and other payables Total expected outflows
1,202,091
536,731
-
-
-
- 1,202,091
536,731
1,202,091
536,731
-
-
-
- 1,202,091
536,731
Cash and cash equivalents Trade and other receivables
2,081,754 2,466,045
-
-
-
- 2,081,754 2,466,045
173,350
91,495
109,922
-
-
Total anticipated inflows
2,265,295 2,639,395
91,495
109,922
-
- 2,356,790 2,749,317
Net (outflows/inflows on financial instruments
1,063,204 2,102,664
91,495
109,922
-
- 1,154,699 2,212,586
Financial assets-cash-flows realisable 183,541
275,754
283,272
Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognise financial assets is the carry amount, net of any provisions for doubtful debts, as disclosed in the Statement of Financial Position and Notes to the Financial Statements. There are no material amounts of collateral held as security at 29 February 2016. Credit risk is managed and reviewed regularly by Finance Committee. It arises from exposure to customers and deposit with financial institutions. The Finance Committee monitors credit risk by actively assessing the rating quality and liquidity of counter parties. - only banks with an “A” rating utilised; - all potential members are rated for credit worthiness taking into account their particular circumstances and financial standing and - customers that do not meet the Club’s strict credit policies may only purchase in cash or using recognised credit card. At 29 February 2016 the Club does not have any material credit risk exposure to any single receivable or group receivables under financial instruments entered into by the Club.
Page 31
notes to the financial statement for the year ended 29 february 2016
The Club’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rate on those financial assets and financial liabilities, is as follows: Weighted Average Effective Interest Rate 2016 2015 Financial Assets Cash Receivables
%
%
Fixed Interest Rate 2016 2015
2016
2015
$
$
$
$
1,422,829
1,311,624
657,425
1,152,921
1,500
1,500
2,081,754
2,466,045
-
-
-
-
-
-
275,036
283,272
275,036
283,272
1,422,829
1,311,624
657,425
1,152,921
276,536
284,772
2,356,790
2,749,317
-
-
-
-
1,202,091
536,731
1,202,091
536,632
-
-
-
1,202,091
536,731
1,202,091
536,632
-
$
Total
3.12%
-
$
Non Interest Bearing 2016 2015
1.80%
Total Financial Assets Financial Liabilities Trade Payable Total Financial Liabilities
Floating Interest Rate 2016 2015
$
$
Sensitivity Analysis Interest rate risk The Club has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. This sensitivity analysis demonstrates the effect on current year results and which could result from a change in this risk. At 29 February 2016 the effect on profit and equity as a result of change in the interest rate, with all other variables remaining constant would be as follows; 2016 $
2015 $
41,635
49,321
(41,635)
(49,321)
41,635
49,321
(41,635)
(49,321)
Change in Profit - Increase in interest rate by 2% - Decrease in interest rate by 2% Change in equity - Increase in interest rate by 2% - Decrease in interest rate by 2%
This sensitivity analysis has been performed on the assumption that all other variables remain unchanged. No sensitivity analysis has been performed on foreign currency risk as the Club is not exposed to foreign currency fluctuations.
Page 32
notes to the financial statements for the year ended 29 february 2016 NOTE 17: RELATED PARTIES 2016 2015 $ $ During the year ended 29 February 2016, Royal Adelaide Golf Club Inc. did not enter into any contracts with any related parties. - - NOTE 18: LEASE COMMITMENTS Financial Lease Commitments Non Cancellable finance lease contracted for and capitalised in the financial statement Payable-minimum lease payment Not later than 12 months 40,245 Between 12 months and 5 years Greater than 5 years - Minimum Lease Payment 40,245 The financial lease agreement assumes substantially all risks and rewards of ownership accrues to the Club. Upon initial recognition the leased asset is measured at an amount equal to the lower if its fair value and the present value of the minimum lease payment. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to the asset. The Club negotiated a financial lease to finance the supply of 15 electric golf carts. The term of the lease is 48 months and the interest rate applied to the lease is fixed for the life of the lease and no other increases are factored into the contract. NOTE 19: CONTRACTUAL LIABILITY The Club negotiated a fee with Golf Australia to host the Women’s Australian Open. The amounts remaining payable are: 2017 - $25,000 plus GST 2018 - $25,000 plus GST NOTE 20: CAPITAL EXPENDITURE The Club has committed to Stage 5 of the Clubhouse Redevelopment to a maximum cost of $3,500,000. NOTE 21: SEGMENT REPORTING The Club operates predominantly in one business and geographical segment, being in the leisure sector providing social facilities to Members of the Club in South Australia. NOTE 22: KEY MANAGEMENT PERSONNEL COMPENSATION Short-term Post Total Benefit Employment $ $ Benefit $ 2016 415,253 36,462 451,175 Total compensation 2015 Total compensation
460,593 Page 33
34,164
494,757
notes to the financial statement for the year ended 29 february 2016
NOTE 23: OFFICERS OF THE CLUB Angus Alexander McLachlan Kym Charles Perks Tim Tresloggett Evans David Alan Cherry, AM James Robert Botten David Ash Black Tim Grant Jordan Alexander James Forbes, CMG, MC Richard Arthur Duncombe Mills Philip Hugh Plummer James Leslie Sweeney Edward William Taylor NOTE 24: CLUB DETAILS The registered office address of the Club is: The Royal Adelaide Golf Club Inc 328 Tapleys Hill Road Seaton South Australia 5023 The principal place of business is: The Royal Adelaide Golf Club Inc 328 Tapleys Hill Road Seaton South Australia 5023
Page 34
STATEMENT BY THE COMMITTEE FOR THE YEAR ENDED 29 FEBRUARY 2016
In the opinion of the Committee the financial report as set out on pages 1 to18: 1. Presents a true and fair view of the financial position of Royal Adelaide Golf Club Inc. as at 29 February, 2016 and its performance for the year ended on that date in accordance with Australian Accounting Standards, mandatory professional reporting requirements and other authoritative pronouncements of the Australian Accounting Standards Board. 2. At the date of this statement, there are reasonable grounds to believe that the Royal Adelaide Golf Club Inc. will be able to pay its debts as and when they fall due. 3. In accordance with section 35 of the Association Incorporation Act 1985, the Committee of The Royal Adelaide Golf Club Inc hereby states that during the financial year ended 29 February 2016 ( i ) no officer of the club; ( ii ) no firm of which an officer is a member; & ( iii ) no body corporate in which an officer has a substantial financial interest; has received or become entitled to receive a benefit as a result of a contract between the officer, firm or body corporate. This statement is made in accordance with a resolution of the Committee and is signed for and on behalf of the Committee by: Captain A A McLachlan Finance Chairman P H Plummer Dated This 27th day of April 2016
Page 35
Page 36
Page 37
STATEMENT OF HOUSE TRADING for the year ended 29 february 2016
2016 DINING ROOM Sales Less Cost of Goods Sold GROSS MARGIN
$ 670,573 299,178 371,395
BAR Sales Less Cost Of Goods Sold GROSS MARGIN
55.4%
$ 678,607 279,812 398,795
416,232 185,355 230,877
55.5%
405,769 174,055 231,714
57.1%
Less Wages & Related Costs
623,768
57.4%
628,869
58.0%
TOTAL HOUSE TRADING
(21,496)
SUMMARY LAST 5 YEARS
2015 % of Sales
% of Sales
58.8%
1,640
Year Ending February MEMBERSHIP & PERSONNEL Number of Members Full Time Staff Permanent Part Time & Regular/ Casual Staff Subscription Rate- Ordinary Members (Excluding GST)
2016
2015
2014
2013
2012
1,488 24 12 $3,167
1,526 22 11 $3,017
1,543 23 10 $2,873
1,554 24 11 $2,736
1,569 25 11 $2,594
Page 38
SUMMARY OF MEMBERS’ ACCOUNTS & MEMBERS’ FUNDS MOVEMENTS for the year ended 29 february 2016
2016 $000’s Income Subscriptions Other Income & Gross Margin From Trading Contribution Income Entrance Fee Donations from Members
2015 $000’s
2014 $000’s
2013 $000’s
2012 $000’s
2,876 1,323 101 239 4,539
2,749 1,264 187 4,200
2,621 1,184 305 2 4,112
2,507 1,202 262 18 3,989
2,415 1,198 1,471 228 19 5,331
2,216 1,902 4,118
2,141 1,834 3,975
2,116 1,818 3,934
2,046 1,745 3,791
1,960 1,656 3,616
Operating Surplus (Deficit) Before Transfers Members’ Funds & Reserves at Beginning of Year
421 9,231
225 9,006
178 8,828
198 8,630
1,715 6,915
Members’ Funds & Reserves at End of Year
9,652
9,231
9,006
8,828
8,630
Less Expenditure Wages and Salaries Other Expenses
Page 39
THE ROYAL ADELAIDE GOLF CLUB INCORPORATED 328 Tapleys Hill Road, Seaton, South Australia PO Box 121, Findon, South Australia 5023
Telephone (08) 8356 5511 Facsimile (08) 8235 1064 Email ragc@royaladelaidegolf.com.au Website www.royaladelaidegolf.com.au
Page 40