ANNUAL REPORT 2015
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INDEX Office Bearers & Committee……………………………………………......
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Captain’s Report ………………………………………………………........
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Club Activities 2014/15.....……...…………………………………..…........
6
Statement of Profit or Loss and Other Comprehensive Income ....................
16
Statement of Financial Position .................................................................
17
Statement of Changes in Equity……………………………………..….......
18
Statement of Cash Flows……………………………………………………
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Notes to the Financial Statement…………………………………….…......
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Statement by the Committee……………………………………………......
34
Auditor’s Report…………………………………………………….…........
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Statement of House Trading & Five Year Summary……………….…........
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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
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OFFICE BEARERS AND COMMITTEE AS AT 28 FEBRUARY 2015
Patron
His Excellency The Honourable Hieu Van Le, AO Governor of South Australia
MEMBERS
ASSOCIATES
President
J D Crosby, OAM
Mrs S R Rasmussen
Vice-Presidents Captain
K C Perks A J Forbes, CMG, MC D A Cherry A A McLachlan
Mrs S J Evans
Vice-Captain
T T Evans
Mrs E M Grant
Committee
J R Botten Mrs A C Arnfield R A D Mills Mrs D R Le Messurier R L Richards Mrs J P Michelmore P H Plummer Ms J Willoughby J L Sweeney Mrs J G Downer E W Taylor Honorary Secretary Mrs J E Hugo
Delegates to Golf SA A A McLachlan Mrs S J Evans Public Officer A W Gay General Manager A W Gay Club Professional C E Howell
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2015 CAPTAIN’S REPORT
Captain’s Report (Angus McLachlan) Perhaps the most important thing about documented history is that it creates a starting point for future reconstructions of what was perceived to be the original reality. What follows here is the objective view of the writer – further subjective scrutiny by the reader gives the licence to interpret the doings of the past twelve months as he/she would have preferred. But was it so contentious? In late November, a Special General Meeting voted 198 to 4 in favour of bank borrowing to continue the redevelopment of the clubhouse. The Renaissance Golf Design team came several times to proceed with improvements to the course.
Several visits from Renaissance Golf Design provided us with further evidence that we are in good hands. Quite significant but subtle changes have been made, in some cases leading to comments from a few members that they are making the course easier. RGD’s response is that they are not endeavoring to make it easier, but more attractively folding into the landscape and more fun. As we wrestle with dwindling numbers of young people playing golf, being either time or cash poor or both, the need to make the game playable in a reasonable time without being so difficult that learners are intimidated, becomes critical. The alterations to the 17th hole in February last year have certainly made the hole more enjoyable, but the indexes of difficulty for all grades have remained the same. Mission accomplished. Some trees have been removed on holes three and four. No one now mentions their demise. Walking away from either hole with a par remains a satisfactory outcome. A good drive is still essential; if you drive where the trees were, par is an unlikely result. Easier? – perhaps, marginally. More fun, no doubt.
A tax deductible fund was established through the Australian Sports Foundation, for potential donations by Elsewhere in this report you will read of a planned and members to specific projects within the club. designed 19th hole. In the recent past a number of members The Golf SA Men’s Amateur Classic was held over four have indicated a desire to donate something to the club. The Australian Sports Foundation allows a tax deduction on sums rounds with appropriate acclamation of our course. donated to specific projects. The proposed nineteenth hole Our year began with an AGM early in June. This satisfies the qualifications and by the time you read this the allowed the immediate past captain, Michael Jay, to opportunity for involvement will have been put in place. vacate the country the next day to avoid anything resembling a handover, beyond adorning the incoming As indicated further on, membership is one of our with the red captain’s jacket, initiated by him. major concerns. Whilst we have more lady members Work in progress was the finalisation of funding for proportionately than many clubs, their numbers have the planned stage five clubhouse redevelopment dwindled in recent years. Much has been done by mentioned above. As the project was considered their Committee to alleviate the trend, but it is not a indivisible, it had become apparent that the quantum subject for the ladies alone. The waiting list for men is involved would require borrowings to accomplish. reasonable, especially compared with other clubs, but Approval for this was given at the SGM in a solid display a continuing, concerted effort needs to be made by all of enthusiasm for the ongoing improvements to the fabric at this club to nominate suitable people as a matter of of the clubhouse. Expectations are that the ladies will be in priority. Our Membership Sub-Committee has spent their new quarters by June 2016, with other parts of the much time deliberating on how the future structure of work, such as the ProShop renovations, being completed the membership categories should look. Other clubs’ templates have been looked at, but none seems to readily much earlier. Page 4
2015 CAPTAIN’S REPORT
Captain’s Report .....Cont’d fit our needs or expectations. The outcome of these clarity of thought and persuasive manner ensured were discussions will have given consideration to the next implemented. His golfing prowess was well known, ten to fifteen years and hopefully, not taken that long. having played so widely, but too, his humour, acerbic as it sometimes was, endeared him to all those who Inevitably, regrettably, a number of our members have participated in the banter which he enjoyed so much.” died during the year. This report would not be complete Even in recent times when he was clearly unwell, his visits to without mentioning John Maddern who was variously our his golf club still gave him the great pleasure we all enjoy here. Captain, President and Honorary Life Member. In quoting part of a letter to his wife Betty on behalf of the club it In closing, I note the spread of ages of our Club Champions read. this year. From Billy Cawthorne A Grade Champion at 17 “His captaincy is still spoken of with great respect for the years old, to David Tamblyn, the most successful player in innovative achievements he accomplished, sometimes our victorious Senior Pennant Team, at 69 in our Veteran’s not without dissent, but which, with the benefit of Championship. In the middle there are an 18 year old hindsight were the correct directions to lead the club. winning the juniors and lately, a 13 year old absconding He understood the challenges of leadership and that with the Autumn Medal. difficult decisions are often divisive. Our club has been the beneficiary of many of his initiatives, which his Does the Simpson Cup draw closer?
2014 TOURNAMENT WINNERS The following members have played with distinction during 2014 and are hereby acknowledged for their achievements. Associates’ Club Champion Juliet Hugo Runner-Up Anne Ellis Associates Bronze Cup Susie Osborne Associates C Grade Champion Marie Stacy Associates Junior Champion Not played Members’ Foursome Champions Ian Rice & Tyron Davies Club Mixed Foursome Champions Jim Sweeney & Alison Claire Sweeney Associates’ Foursome Champions Steph Evans & Juliet Hugo
Club Champion Billy Cawthorne Runner-Up Louis Fuller B Grade Champion Jamie McKee C Grade Champion David Bartlett Seniors Champion Rodney Phillips Veterans Champion David Tamblyn Junior Champion Patric Kroschel
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CLUB ACTIVITIES 2014/15
Associates’ President’s Report (Sally Rasmussen) It is with pleasure that I table the Associates President’s Report for the calendar year of 2014. The season opened in March with our Patron Mrs Liz Scarce present.
The Veterans Lunch, always a most enjoyable occasion for some of our more senior Associates, was an extremely popular and entertaining afternoon. Libby Kosmala our guest speaker, a renowned Para Olympian and multi medallist in the field of “shooting”, is the sister of Associates, Ruth Gerlach and Philly Stuart. Libby held us It was her final attendance in awe, not only with her life story, but all that is involved prior to the retirement of the Governor, Rear Admiral for an athlete at this elite level in a wheelchair! Kevin Scarce. This being so, the President Wendy Hogarth presented her with a posy to thank her for The Pennant and Cleek season tends to always throw her patronage of the Associates over the past 7 years. up a challenge for the competing teams. There were varied results this year, however, the dedication and We are delighted that Mrs Le, wife of our new Governor, enthusiasm of all team members is constant and the His Excellency The Honourable Hieu Van Le, has accepted Club is always grateful for the time they devote to their to be The Associates’ Patron for the coming term. squads. Our Captain Steph Evans held a most enjoyable As always, enthusiasm of the Associates’ abounded ‘Pennant Party’ at her home to thank all the participants. as they returned refreshed and ready, to embrace the new golfing season. Our beautifully presented course, always a joy to play on, is a credit to our Course Superintendent Nathan Bennett and his staff. Our prestigious event The Associates Club Dinner and Centenary Bowl 4BBB was held in May with a capacity attendance. Dr Sally Nobbs gave a wonderful talk and insight into her charity work with a small community in Nepal, which held the audience enthralled. Also in May we warmly welcomed new Associate members to a morning tea. It is always a pleasure to see those new to the club joining in all the activities both golfing and otherwise that Royal Adelaide has to offer. In June the Club was “In The Mood” for a wonderful black tie event, featuring music from the ‘Big Band’ era. Jan Beasley along with our Events Manager, Lisa Pacini, worked tirelessly to bring the era to life, with wonderful food from our kitchen to match. Our General Manager, Andrew Gay, was an enthusiastic operator of the ‘smoke machine’ creating a very mystical atmosphere which ‘set the scene’!
There is always a “full house” for Guest Day. Associates and their guests enjoyed golf followed by lunch in the dining room. Our thanks to Committee members Kate Kain and Julie Michelmore who oversaw a most successful day, enabling the rest of the Committee to entertain their guests. Our annual bridge day was held in September under the excellent guidance of co-ordinator Linda Alexander. Again there was a two tier system, which enables new comers to the game to feel ‘less threatened’ and more at ease! The Associate Committee thoroughly enjoyed the 2014 Royal Challenge held this year at Royal Sydney Golf Club. This is a tripartite event between Royal Melbourne, Royal Sydney and Royal Adelaide. The host club entertained us quite “royally,” and as a result we graciously allowed them to win the Mona McLeod Trophy!!
During 2014, Julie Michelmore and I have been conducting a series of interviews with some of our eminent Associates and others, to document on disc information and recollections of times past. We feel we have captured on film some of the history of yesteryear at Royal Charity Day in July, is always a successful and well attended Adelaide for future generations to peruse and wonder at. event. This year our selected charity was The Fiona Pike In order for our club to survive, it is paramount that Skin Cancer Awareness Campaign, a popular and well we gain new Associate membership. Kate Kain, along supported choice. with our teaching professional Daniel Blackwell, Page 6
CLUB ACTIVITIES 2014/15
Associates’ President’s Report .....Cont’d have been instrumental in implementing excellent programmes with the aim to “try out” and encourage interest in eventual membership. The ‘Green Girls’ and ‘Fairway Packages’ have been highly successful with some participants already proceeding towards membership. Our thanks to Kate for all the hard work and enthusiasm she gave to this important programme.
The Associates are indeed fortunate to have so many willing volunteers, always happy to assist with our special events. It goes along with the camaraderie we experience within the club, and our thanks go to you all.
In October, our outgoing President Wendy Hogarth was warmly farewelled at our Annual Meeting. Wendy was outstanding, undertaking “all things Associate” with great warmth and gusto. Nothing escaped her eye for detail and as a result a smooth operation always ensued. The Associates wholeheartedly thanked her for her outstanding service in this position.
staff.
The resounding success of the Special General Meeting held in November enables our club to move forward and update our building and facilities, as is proper for a club of The Junior Golf Programme under the excellent support our standing. It is not only for the benefit of the members, of Norma Estcourt Hughes, Pauline Morrison and but to showcase Royal Adelaide, enabling functions of a Shylie Yelland continues to thrive. Their enthusiasm and high standard to be held, thus providing a valuable source of involvement is again a vital element in attracting interest income. Stage 5 Construction will commence mid 2015. in the game of golf and ultimately membership of our club. Which brings me to our quite amazing staff, who all so An enormous highlight in our calendar for 2014 was the willingly give of their time. We are most fortunate to have appointment of Judy Dawes as an Honorary Life Member. such experienced people to look after us and attend our This is a rare occurrence, however Judy’s appointment is needs. very richly deserved. Judy has been a past Captain and President of the Associates, with not only extraordinary Our General Manager, Andrew Gay, heads our invaluable prowess as a golfer, but remarkable service over very many support system, able to always give sound advice when years to the well-being of our club. A constant Pennant necessary. supporter to this day, in all weathers during the winter We are also indebted to Deb Smith, Sharon Agerman, Lisa months, Judy can be seen with her binoculars trained, Pacini, Craig Sullivan-Brook, James Hampel and Robin following the players. Our warmest congratulations, Judy. Neumann our caretaker, along with our attentive Pro Shop Paul Stuchbery, golf administrator, is an enormous asset to the Associates and we are most grateful for his assistance.
Our kitchen staff, headed by Gregg Jenkins, never cease to entice us with their beautiful menus. Tony Upton and his ever attentive bar staff, are always there to greet us after golf, and along with Elizabeth Faulks and Maureen Lithgow are an Our outgoing co-opted committee member Kate Kain important part of our golfing family. Thank you to you all. was also thanked for her huge contribution over the period of three years. We Associates are so warmly rewarded by our membership of Royal Adelaide Golf Club. Not only can we play on We welcome back another co-opted Committee member one of Australia’s top golf courses, but we are able to Julie Michelmore, along with two new Committee partake of so much more. Besides golf, we gain many members, Anne Arnfield and Jude Willoughby. long-standing friendships which are nurtured along November saw a lunch held to acknowledge and celebrate the way, with many common interests to be explored. membership of Royal Adelaide Golf Club for 50 years! No Royal Adelaide continues to thrive, despite some mean feat! Sadly Pam Hamilton the only Associate recipient challenging times ahead. The energy and enthusiasm of both for 2014 was unable to attend, however, Didy McLaurin Administration and Members augurs well for our future. who achieved this status in 2013 was able to join us. Page 7
CLUB ACTIVITIES 2014/15
Membership & Rules (Jim Sweeney, Chairman) Those taking the time to read this report may be expecting exciting “news� on the deliberations of the Membership Working Party. As disappointing as it may seem there is little to report at this stage, however progress has been made. The working party has provided the Committee with some options they believe would provide a viable membership structure for the future. Designing a membership structure from scratch would be straightforward. Retrofitting membership, like anything else, has its challenges and the nuances of any changes need to be considered in depth. RAGC membership (male and female) has some unique characteristics which help form the inherent fabric of
Category Ordinary Honorary Life Life Veteran (all categories) Under 31 Professional Country Absentee Absentee Long-Term Temporary Social Non-Playing Member Through Service Junior Qualifying Junior Clergy TOTAL
our Club and preservation of these are important. The Committee is in the process of considering the potential effects of the options and once a full understanding is reached dialogue with all member categories will occur. Currently the Committee is considering some possible minor amendments to Rules to be put to the AGM in June. Any proposed amendments will be circulated in due course. New names on the waiting list remain an important safeguard for our future. In a society feeding on instant gratification having to wait is a foreign concept and your help in extolling to prospective new members the virtues of membership of RAGC, and that it is worth the wait, is appreciated.
2014/15 2013/14 2012/13 Members Associates Members Associates Members Associates 500 302 497 316 493 320 3 3 3 2 2 3 17 10 17 11 18 14 28 35 29 35 35 31 48 5 39 7 38 5 1 2 3 1 19 16 20 15 22 13 106 30 123 33 127 38 44 19 45 18 47 16 4 1 4 1 5 1 62 10 63 7 61 10 114 89 113 81 114 85 2 2 2 47 7 1 1002
3
41 8 2 1008
524
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5
534
32 9 2 1007
6
543
CLUB ACTIVITIES 2014/15
Course Report (Tim Evans, Chairman) We tend to look forward rather than back. This report provides the opportunity to reflect on the last year, and what has been achieved on and off the course. The course continues to impress, and presents in a championship standard, now on a daily basis, a standard of which we are very proud. Renaissance Golf Design, and in particular Brian Slawnik, our Senior Design Associate, has been back to RA twice in the last year, to continue the “conversation” (as they like to call it !) with the club and the course, a conversation which began with their initial report in 2013. Works last June included the 16th hole and the 8th red tee complex. More recent works include the 5th fairway bunker complex and the 5th green side mounding tied in to the 6th tiger tee. Brian’s notes on RGD’s design approach to this work are worth referring to, now that they are complete, and settled in. “… on 5 the approach will be to suppress and quiet the noise, in order to tempt more play down the right side, and possibly get the fairway bunker complex and green
side bunker talking to each other.” “…in both cases I’ll be drawing inspiration from the bunker shapes I drew from on holes 16 and 17.” The work on 5 has been much admired by members and visitors alike, an outstanding piece of work, which has expanded our collective vocabulary in golf course design terminology, and reinforced the bunker style that is Royal Adelaide. Along with on course works, the RGD visit included further design development concepts for proposed future works. Although in a manner perhaps unique to RGD, a sketch design for a 19th hole was undertaken with a 14 ton “Digger” on a site south east of the new 17th Green complex, a site originally suggested by our President John Crosby. By way of background, in initial meetings with RGD, the Committee expressed a desire to maintain a full 18 holes in play during the construction of any future works, and as alluded to in last year’s report, a 19th hole was seen to give the flexibility we desire to meet this goal and to deliver 18 championship standard holes whilst works are undertaken on a hole by hole specific basis.
Bunkers on the 5th Hole
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CLUB ACTIVITIES 2014/15
Course Report .....Cont’d The Committee recognised that this site over others offered the best fit in the way it would integrate into the existing flow or “routing” of the course. • It is sited in an area of the course that requires rehabilitation after being left somewhat scarred after the development of the 17th hole. • The site will not adversely affect any future master planning of the course as the 17th hole has now been completed. • It is a site on which RGD believe they can create a hole of a standard befitting Royal Adelaide. • The hybrid solution of splitting the 9th hole has served us well, and has proven to be a workable solution, but takes out of play our best Par 5 in doing so. Perhaps a picture is “worth a thousand words,” please refer to the concept plan opposite of aerial imagery of the proposed site. • The proposed green tucks in behind the existing Moonah trees, and is therefore shielded from standard that we so enjoy. view from the existing routing of the course and Other “on course” works undertaken include: the 17th in particular. • Removal of the 9th Fairway Bunker left of the Drive • A small green is to be protected by 2 bunkers and surrounded by hollows and swales, to integrate • Removal of the 11th Fairway Bunker right of the the green into the surrounding embankment. Drive • A shot played into a stiff southerly will enable you • Extension of the 3rd green side mound to direct all to master your “knock down” approach shot, as cart and buggy traffic away from the playing a wedge left to the mercies of the wind may bring surfaces. undesirable results. Other peripheral works include: • A pathway return to the 18th tee complex outside • Pathway renovations to 4 and 11 after the the line of the existing mounds completes the success of those already completed on 15 and picture. 17. We see this project as not only one of great merit, but as • Pathway renovation to practice fairway the next stage of work to be undertaken by RGD. • Practice fairway all weather matting facility The construction of RGD related works to date have been to satisfy our members’ insatiable desire to practice! undertaken primarily by Brian Slawnik, himself on the “Digger” and our own team from Royal Adelaide. These minor works, which perhaps miss the accolades This places significant additional workload on our team, of the on course work, add to the overall experience of and it is a credit to all of them, that they embrace the playing the course, and are tackled by Nathan and the team challenge whilst also maintaining the course to the with no less enthusiasm. Page 10
CLUB ACTIVITIES 2014/15
Match & Pennant Report (Rob Richards, Chairman) Golf and golf events continue Last year the team was ably managed by Rod to be well supported at RAGC Phillips. Rod has agreed to take the job on again as evidenced by the following: and his presence this year is certainly an integral component in ensuring the team has all the resources at its disposal for success. We appreciate Rod’s efforts. • Last year (year ending 28 February 2015) the course saw 32,600 total member rounds, up by about 4% on the previous year.
Bonnar Cup The 2014 Bonnar Cup campaign gave players plenty of experience competing at the B Level last year, with • Rounds for members and Associates on the following players knocking on the door to take the step up to the days are:
Member Associates
Tuesday
Wednesday
Thursday
Saturday
Unavailable
5,010
1,786
8,371
5,302
910
3,032
284
Even if we excludeTom Gosse’s rounds from the calculation, (say 365), numbers are still up! Simpson Cup A welcome return to form in last year’s pennant series has seen the Royal Adelaide Simpson Cup Team quite rightly feeling more rejuvenated for the upcoming season. We saw a good mix of talent and personalities last year which assisted in the development of a good team ethic and work ethic. The build up has been good and there is great promise for the pennant team’s 2015 campaign. We have a nice blend of experienced players and new and exciting prospects. Sadly two solid performers from last year cannot participate in this year’s line up, but that only creates opportunities with an abundance of fresh young faces who have already put in time and effort and are pushing for selection in the final Simpson Cup line up. The team expects to do well this year.
Simpson Cup side this year. There are still plenty of choices remaining to fill the voids in this young side. Returning players James Wallman, Sam Medlin and Alex Pacifico will be keen to make a statement, and will be leading by example for newcomer 13 year old William Arnold, a promising addition to Royal Adelaide’s pennant squad. It has been an impressive preseason preparation and the 2015 Bonnar Cup team should do well this year. James Bennett has kindly agreed to act as manager of the team. He did a wonderful job last year and we are grateful that he has agreed again to take on the role of B Manager. Jim Sweeney again has agreed to assist as pennant coordinator (or whatever else may be thrown at him). Jim has made a great contribution over the years as pennant coordinator, and we thank him for what he has done.
Cameron Howell and Daniel Blackwell have provided great assistance as teaching PGA professionals.
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CLUB ACTIVITIES 2014/15
Junior Development - Rob Richards The Junior Development Committee was formally established two years ago. Prior to that “Come Try Golf” and other programs had been undertaken from time to time by a group of hardworking members to promote the interests of juniors. The Associates were (and are) very active in pushing the interests of juniors.
males and females. Cost of membership for both juniors (in relative terms) and for the transition from juniors to full member is seen as a prohibiting factor in attracting new members. We are trying to identify ways in which the painful cost of membership may be deferred, deflected or otherwise ameliorated.
The objective is to develop a range of programs to entice juniors to our course, to introduce them to the game and to assist them in their overall golfing development. Hopefully they may “catch the bug”, and ultimately it may lead to membership.
Thirdly, on the course, the development of the orange short course. It will be particularly helpful in Daniel’s introduction to juniors to actually step up to “playing of a round of golf ”. Thank you to the Associates for pushing and assisting in the development of that course.
Our Committee has made good progress.
The inaugural Family Fun Day was held on 29 March involving about 45 juniors of all ages and about 30 parents and friends. It was a great success. Needless to say there were multiple winners.The format was 13 holes ambrose, shot gun start. This was a different shot gun start. To see the juniors streaming out of the club precinct at breakneck speed, and to see them running across the course as fast as their carry bags or small buggies would allow was fantastic. Many thanks to Norma Estcourt-Hughes for her work in the promotion of the idea and all her work to ensure that it actually happened, and to Pauline Morrison, ShylieYelland, and Paul Reader and many others for their time and effort.
Daniel Blackwell has been running the golfing clinics. Numbers of both participants and clinics continue to grow, although we have not reached optimum numbers yet. Daniel is forming strong links with a number of schools which are adding golf to their sporting curricula.
The Committee is exploring a whole range of ideas to attempt to attract juniors to our golf club and to find a substitute from some of the many other activities which are available to juniors today! We are considering what types of promotional advertising are appropriate. We are considering fundraising techniques.We are trying to identify Members have been very supportive of the concept of a means of increasing income for the specific promotion of dedicated and structured development program for juniors. juniors and to structure a budget dedicated to junior programs Please continue that support unreservedly. i.e. not to rely on general revenue, and we are aiming to increase the numbers in our ranks of junior members. Family Fun Day Some of our initiatives include the following: Firstly, Daniel’s role is not only restricted to teaching how to swing a club. In the course of conducting his clinics he individually monitors each junior as to skill level, age, maturity etc, and will otherwise be encouraging the juniors to develop beyond the initial programs (“little hitters” and “big hitters”) into our development squad. He will endeavour to impart a love of the game to each of the juniors who come under his wing. Secondly, a simplification of RAGC Club Rules is perceived to be desirable in a number of respects. For example, elimination of the difference in classification as to Page 12
CLUB ACTIVITIES 2014/15
House & Events Report (Eddie Taylor, Chairman) The House and Events SubCommittee has historically overseen the operation and marketing of the club’s events and non-golfing services in addition to being responsible for all noncourse property related issues. Over time this Committee grew in size and with the decision to embark on a significant construction project it was decided to separate this Sub-Committee into two - House Trading and Events, and Club Facilities. This separation will allow us to spend the appropriate amount of time and attract the appropriate skills to better address the clubs needs moving forward.
Unfortunately a club of our size relies upon the revenue of non-member events. Not only is this a profitable exercise but it gives our team some variety. As part of our strategic planning process we identified a need to better identify the ideal non-member events. Specifically we want events that cause the least disruption to the membership and generate the most profit to the club for the least effort. We are continuing to work on this brief. I would like to remind members that we offer a discount to you should you wish to hold an event at the club. Weddings, Christmas Shows, Strategic planning sessions, product launches, birthdays, wakes are all events that we can cater for in an environment that is unique. Believe it or not members of the general committee undertake numerous study tours throughout the year and our aging clubhouse is not ideally Our regular golf events were very well attended as designed to hold events. The clubhouse redevelopment usual and seem to be getting more popular every year. will be an important step in the right direction to Our challenge is to attract younger members to these reduce the impact these events have on our members. events. It was fantastic to see a great turnout to the Family Fun Day and I would encourage parents and grand- We continue to get excellent feedback on the standard parents to embrace this again next year. Our youth is of dinning and beverage offering and I would like our future in a challenging industry and we all need to to take this opportunity to thank Gregg Jenkins play a part in encouraging the game of golf to the next for his dedicated service over the last eight years. I generation. would also like to thank all of our loyal house staff whom continue to be attentive to member’s needs.
VALE The Committee records with regret the death of the following members during 2014/15:R D Morgan R J Kimber Mrs J M Cowan R J Brooks
J O’H Hyde J P Maddern Mrs C A Harvey I R Robertson
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CLUB ACTIVITIES 2014/15
Club Facilities Report - Tim Evans This new Sub Committee has been spun out of “House and Events” and now oversees anything that doesn’t grow! i.e. non- course assets. The Committee first met in February of this year and has the responsibility to oversee the following: • Clubhouse • Carparks • Driveway • Entry gates • Fencing
The number one agenda item has been the status of the Stage 5 Clubhouse redevelopment. After approval was granted late last year to borrow funds for the scheme, the design development and documentation of the works have now advanced to a stage where the works can be tendered. We feel we will be in the market place at the right time to receive competitive tenders, in an attractive “interest” environment. The scope of the Stage 5 works include the upgrade and/ or construction of the following: • Pro shop • Breezeway
• Course Maintenance compound
• Associates Locker room
• Ackland Horman Pavilion
• Buggy store and cart store
• Hard landscaping
• Clubhouse entry and associated veranda
• Course Superintendent’s house • Railway line • Adjacent neighbouring properties
• Lower level carpark. With an anticipated completion mid-2016, a lot of hard work by our architects Grieve Gillett and the consulting team over the last year, we are now ready to embrace an exciting 12 months ahead.
Perspective images of the Stage 5 Redevelopment
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CLUB ACTIVITIES 2014/15
Finance & Plannning (Phil Plummer, Chairman) The year 2014/2015 has been a busy one. Significant progress has been made on the Stage 5 Redevelopment Project, whilst ensuring that the standard of the course and amenities have been maintained to a high standard. From a financial aspect, the year has been solid and in line with expectation. The operations resulted in a surplus of $255,280 compared with $177,581 in 2014. This surplus was achieved after providing $237,749 in depreciation and a “one off ” adjustment to the Long Service Leave provision of $35,000 due to a change in accounting policy. Significant points in the trading results were: Total Members income increased by $131,351 (4.9%) whilst expenses increased by $16,094 (0.49%). Entrance fees for the year were down $117,743. This is primarily due to a reduction in resignations and the continuing issue with lower Associate numbers. The profit from House Trading was $1,640 compared with a loss of $8,048 in 2014.
Links expenditure increased by $40,443 (2.4%) The Course Superintendent has done a wonderful job of containing wages and the increase is due to significant works undertaken in course improvements including the work on the 8th and 16th tees and various bunkers. Income from golfing activities increased by $47,358 (13%). Attracting Golf Trade Days remains difficult and much of the increase is due to timing issues caused by the vagaries of weather. Capital expenditure for the year totalled $392,396. Projects undertaken included $240,092 of Course Equipment, Furniture and Fittings of $51,783 and work on the Stage 5 Redevelopment. The Committee were pleased with the overwhelming endorsement of the proposal to borrow $2.5m to facilitate the Stage 5 Redevelopment. This work is planned to commence in the next few months and economic conditions continue to favour the Club. As reported in last year’s Report, Ern Buckland retired in July 2014 and Craig Sullivan-Brook has slipped seamlessly into the Accounts role. I wish to thank Andrew, Deb and Sharon for their great work and look forward to the coming year’s activities.
We would like to welcome the following new members to RAGC:
Luke Anderson Kym Bannister Antonio Carrocci Ian Doolette Kristopher Handshin Stuart Harkness Karl Kirsten Dale Le Poidevin Matthew Rowe Aaron Southern Kenneth Taylor Stephen Leaney Anghus Hall Harry Byrnes Howe Matthew Earl Patrick McCole Nicholas Montarello
Cameron Baulderstone (ex Junior) Alex Borg (ex Junior) Ben Carter (ex Junior) Scott Elvish Malcolm Jackman Sean Rahaley Ian Roberts-Thomson Kevin Scarce Thomas Skipper Jack Geake (ex Junior) Samuel Medlin (ex Junior) Page 15
Callum McNair (ex Junior) Nicholas Taylor (ex Junior)
Susan Barry Fiona Crosbie Sally Cudmore Samantha Geake Julianne Hall Dieu Le Susan Mathews Josephine Phillips Catherine South Fiona Morrison (ex Junior)
statement of profit or loss and other comprehensive income for the year ended 28th february 2015 Note
2015
2014
$
$
REVENUE Membership
2.1
2,814,128
2,682,777
Golfing Activities
2.2
399,644
352,286
1,640
(8,048)
House Trading (Net) Miscellaneous Income
2.3
169,005
175,866
Entrance Fees
2.4
186,904
304,647
3,571,321
3,507,528
Total Income EXPENSES Links
3.1
1,737,736
1,697,293
Clubhouse
3.2
441,439
439,600
Administration
3.3
1,151,226
1,182,254
15,640
10,800
3,346,041
3,329,947
225,280
177,581
-
-
225,280
177,581
Audit Fee
4
Total Expenses OPERATING SURPLUS FOR YEAR Other Comprehensive Income TOTAL COMPREHENSIVE INCOME FOR THE YEAR
Page 16
statement of financial position as at 28th february 2015
Note
2015 $
2014 $
Cash and Cash Equivalents
5
2,466,045
2,672,088
Trade and Other Receivables
6
94,547
140,686
Inventories
7
193,868
183,167
Deferred Entrance Fees & Subscription Fees
8
78,803
102,934
Other Current Assets
9
72,266
99,685
2,905,529
3,198,560
ASSETS CURRENT ASSETS
TOTAL CURRENT ASSETS NON-CURRENT ASSETS Deferred Entrance & Subscription Fees
8
109,922
156,291
Property, Plant, Equipment & Trophies
10
8,842,348
8,985,882
8,952,270
9,142,173
11,857,799
12,340,733
TOTAL NON – CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and Other Payables
11
496,386
1,056,651
Short-Term Provisions
12
394,256
312,779
Unearned Income
13
1,642,002
1,779,362
Finance Lease Liability
14
40,245
17,944
2,572,889
3,166,736
TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long-Term Provisions
12
53,422
127,544
Finance Lease Liability
14
-
40,245
53,422
167,789
TOTAL LIABILITIES
2,626,311
3,334,525
NET ASSETS
9,231,488
9,006,208
9,231,488
9,006,208
9,231,488
9,006,208
TOTAL NON-CURRENT LIABILITIES
EQUITY
Retained Earnings TOTAL EQUITY
Page 17
statement of changes in equity for the year ended 28th february 2015 $ Balance as at 1 March 2013
8,828,627
Total Surplus for the Year 2013/14
177,581
Other Comprehensive Income for the Year 2013/14
-
Balance as at 28 February 2014
9,006,208
Balance as at 1 March 2014
9,006,208
Total Surplus for the Year 2014/15
225,135
Other Comprehensive Income for the Year 2014/15
-
Balance as at 28 February 2015
9,231,343
Page 18
statement of cash flows for the year ended 28th february 2015
Note
CASH FLOWS FROM OPERATING ACTIVITIES Subscription Receipts Entrance Fees & Donations Receipts from Trading Interest Received Lease Repayment Payments to Suppliers & Employees
2015
2014
$
$
2,697,075 321,600 1,644,926 45,395 (17,944) (4,516,187)
2,840,142 308,429 1,608,855 65,692 (17,945) (3,479,246)
174,865
1,325,927
CASH FLOWS FROM INVESTING ACTIVITIES Payments for Property, Plant & Equipment Proceeds on Property, Plant & Equipment Sales
(392,317) 11,409
(1,116,707) 29,498
Net Cash Used In Investing Activities
(380,908)
(1,087,209)
NET (DECREASE)/ INCREASE IN CASH Cash at the beginning of the financial year
(206,043) 2,672,088
238,718 2,433,370
2,466,045
2,672,088
Net Cash Provided By Operating Activities
15b
CASH HELD AT END OF FINANCIAL YEAR
15a
Page 19
notes to the financial statement for the year ended 28th february 2015 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 28 February 2015 were approved and authorised for issue by the Committee on 27 April 2015. 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 20
notes to the financial statement for the year ended 28th february 2015 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 21
notes to the financial statement for the year ended 28th february 2015
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 28 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 22
notes to the financial statement for the year ended 28th february 2015
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. 2015 2014 $
$
NOTE 2: REVENUE 2.1 Membership Revenue Subscription Received
2,748,597
2,621,567
Other Membership Revenue Locker Fees Waiting List Fees
32,042 28,239 5,250 2,814,128
27,952 23,400 9,858 2,682,777
46,190 353,454 399,644
38,406 313,880 352,286
2.2 Golfing Activities Buggy Hire Green Fees
Page 23
notes to the financial statement for the year ended 28th february 2015 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES 2.3 Miscellaneous Income Donations Interest Income Profit on Fixed Asset Disposals Sponsorship Sundry Income Unused Dining Room Levies 2.4 Entrance Fees Entrance Fees
2015 $
2014 $
50,074 4,462 13,514 36,867 64,088 169,005
2,065 62,851 9,838 3,996 41,762 55,354 175,866
186,904
304,647
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 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
337,749
339,699
56,411 221,669 87,869 48,878 29,608 60,618 894,934 1,737,736
37,439 182,315 88,436 47,713 28,377 70,672 902,642 1,697,293
5,262 211,186 115,368 47,445 6,460 55,718 441,439
2,104 223,034 105,583 48,686 6,902 53,291 439,600
315,113
376,827
143,800
139,110
8,534
17,175
122,474
105,343
561,305
543,799
1,151,226
1,182,254
3.3 Administration
Club/Office Administration Depreciation Pennant Costs Professional’s Retainer & Commission Wages & Related Costs
Page 24
notes to the financial statement for the year ended 28th february 2015
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 Prepayments
Page 25
2015 $
2014 $
15,640
10,800
1,313,124 1,152,921 2,466,045
1,454,298 1,217,790 2,672,088
98,197 (3,650) 94,547
144,336 (3,650) 140,686
193,868
183,167
78,803
102,934
109,922
156,291
6,000 66,266 72,266
1,321 98,364 99,685
notes to the financial statement for the year ended 28th february 2015
NOTE 10: PROPERTY, PLANT AND EQUIPMENT & TROPHIES
2015 $
2014 $
686 686
686 686
6,373,146 (2,371,089) 4,002,057
6,272,626 (2,227,289) 4,045,337
1,009,854 (697,895) 311,959
976,461 (666,641) 309,820
4,375,202 (2,069,726) 2,305,476
4,164,054 (1,811,223) 2,352,831
ASR Project – at cost Contributed Amount – at fair value Less accumulated depreciation
844,094 1,471,780 (169,384) 2,146,490
844,094 1,471,780 (114,346) 2,201,528
Trophies — at valuation (1991)
75,680 75,680 8,842,348
75,680 75,680 8,985,882
Land Buildings & Improvements – at cost Less accumulated depreciation Clubhouse Furniture & Fittings – at cost Less accumulated depreciation Links Plant — at cost Less accumulated depreciation
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 2014 Additions Disposals Depreciation expense Carrying amount at 28 Feb 2015
ASR Project $ 2,201,528 (55,038) 2,146,490
Land & Buildings
$ 4,046,023 100,521 (143,800) 4,002,744
Plant & Equipment (Course) $ 2,352,831 240,092 (4,736) (282,711) 2,305,476
Furniture, Fittings, Plant & Trophies $ 385,500 51,783 (2,200) (47,445) 387,638
Total $ 8,985,882 392,396 (6,936) (528,994) 8,842,348
a) Additions: Plant & Equipment (Course): Grinder, Workman x 2, Mower, Roller Gator. Furniture & Fittings: Veranda Chairs, Portable evaporative cooler, Computers & Computer Software. Buildings: Clubhouse Redevelopment Stage 5, Course Superintendent’s Shed at Residence, Carpark Security & lighting. Total
Page 26
240,092 51,783 100,521 392,396
notes to the financial statement for the year ended 28th february 2015 NOTE 11: TRADE & OTHER PAYABLES Trade creditors and accruals GST Payable to the ATO
2015 $
2014 $
345,516 150,870 496,386
924,338 132,313 1,056,651
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 27
154,123 224,459 15,674 394,256
185,240 115,726 11,813 312,779
53,422 447,678 33
127,544 440,353 33
1,628,002 14,000 1,642,002
1,771,362 8,000 1,779,362
notes to the financial statement for the year ended 28th february 2015
NOTE 14: FINANCE LEASE LIABILITY Current Liabilities Finance Lease Liability
2014 $
2013 $
40,245 40,245
17,944 17,944
-
40,245 58,189
38,138 1,274,986 1,152,921 2,466,045
37,079 1,417,219 1,217,790 2,672,088
Non – Current Liabilities Finance Lease Liability Total Finance Lease Liability NOTE 15 CASH FLOW INFORMATION a. Reconciliation of Cash Cash on Hand Cash at Bank Short Term Bank Deposits
b. Reconciliation of net cash provided by operating activities to surplus for the year. Operating Surplus 225,280 Add (Deduct) Non Cash Items Depreciation 528,994 (Profit) on Sale of Equipment (4,462) Changes in Assets and Liabilities Decrease in Trade and Other Receivables (Decrease)/ Increase 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
46,139 (137,360) 134,696 (10,701) (578,299) (36,777) 7,355 174,865
c. The Club has $158,704 of unused asset finance leasing facilities in place with the bank.
Page 28
177,581 527,495 (9,838)
118,473 160,708 3,782 (12,886) 334,939 (24,403) 50,076 1,325,927
notes to the financial statement for the year ended 28th february 2015 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 28 February 2015. 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 a mixture of fixed and floating rate deposits. Foreign currency risk The Club is not exposed to 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 29
notes to the financial statement for the year ended 28th february 2015
NOTE 16: LEASE LIABILITY (CONT) Financial liability and financial assets maturity analysis: Within 1 Year 2015 2014 $ $
1 to 5 Years 2015 2014 $ $
Over 5 Years 2015 2014 $ $
Total 2015 $
2014 $
Financial liabilities due for payment Trade and other payables Total expected outflows
536,731 1,074,595
-
40,245
-
-
536,731 1,114,840
536,731 1,074,595
-
40,245
-
-
536,731 1,114,840
Cash and cash equivalents Trade and other receivables
2,466,045 2,672,088
-
-
-
- 2,466,045 2,672,088
243,620
109,922
156,291
-
-
Total anticipated inflows
2,639,395 2,915,708
109,922
156,291
-
- 2,749,317 3,071,999
Net (outflows/inflows on financial instruments
2,102,664 1,841,113
109,922
116,046
-
- 2,212,586 1,957,159
Financial assets-cash-flows realisable 173,350
283,272
399,911
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 28 February 2015. 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 the 28 February 2015 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.
Trade and other receivables Not overdue Overdue by less than 60 days Overdue by less than 90 days Overdue by more than 90 days
Page 30
2015 $
2014 $
70,031 17,219 4,962 2,335 94,547
52,763 14,251 15,803 57,869 140,686
notes to the financial statement for the year ended 28th february 2015
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 Floating Interest Rate Interest Rate 2015 2014 2015 2014 Financial Assets Cash Receivables Total Financial Assets Financial Liabilities Trade Payable Total Financial Liabilities
%
%
Fixed Interest Rate 2015 2014
Non Interest Bearing 2015 2014
Total 2015 2014
$
$
$
$
$
$
$
$
3.12%
3.57%
1,311,624
1,452,798
1,152,921
1,217,790
1,500
1,500
2,466,045
2,672,088
-
-
-
-
-
-
283,272
399,911
283,272
399,911
1,311,624
1,452,798
1,152,921
1,217,790
284,772
401,411
2,749,317
3,071,999
-
-
-
-
-
-
536,731
1,074,595
536,632
1,074,595
-
-
-
-
-
-
536,731
1,074,595
536,632
1,074,595
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 28 February 2015 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; 2015 $
2014 $
49,321
53,442
(49,321)
(53,442)
49,321
53,442
(49,321)
(53,442)
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 31
notes to the financial statements for the year ended 28th february 2015 NOTE 17: RELATED PARTIES 2015 2014 During the year ended 28 February 2015, Royal Adelaide Golf Club Inc. did not enter into any contracts with any related parties. - - NOTE 18: LEASE COMMITMENTS 2015 2014 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 17,944 Between 12 months and 5 years 40,245 Greater than 5 years - Minimum Lease Payment 40,245 58,189 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 painting contract to maintain the Club House and surrounding building for the next year for a total financial commitment of $28,509. NOTE 20: 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 21: KEY MANAGEMENT PERSONNEL COMPENSATION Short-term Post Total Benefit Employment $ $ Benefit $ 2015 460,593 34,164 494,757 Total compensation 2014 Total compensation
386,268
Page 32
32,927
419,195
notes to the financial statement for the year ended 28th february 2015 NOTE 22: OFFICERS OF THE CLUB Angus Alexander McLachlan Edward William Taylor Tim Tresloggett Evans James Robert Botten Richard Arthur Duncombe Mills John Daniel Crosby, OAM Philip Hugh Plummer Alexander James Forbes, CMG, MC Robert Lewis Richards Kym Charles Perks James Leslie Sweeney David Alan Cherry NOTE 23: 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 33
STATEMENT BY THE COMMITTEE FOR THE YEAR ENDED 28 FEBRUARY 2015
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 28 February, 2015 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 28 February 2015 ( 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 Apr-15
Page 34
Page 35
Page 36
STATEMENT OF HOUSE TRADING for the year ended 28th february 2015
2015 DINING ROOM Sales Less Cost of Goods Sold GROSS MARGIN
$ 678,607 279,812 398,795
BAR Sales Less Cost Of Goods Sold GROSS MARGIN Less Wages & Related Costs TOTAL HOUSE TRADING
SUMMARY LAST 5 YEARS
2014 % of Sales
58.8%
$ 661,721 284,639 377,082
405,769 174,055 231,714
57.1%
374,903 154,599 220,304
58.8%
628,869
58.0%
605,434
58.4%
1,640
% of Sales
57.0%
(8,048)
Year Ending February MEMBERSHIP & PERSONNEL Number of Members Full Time Staff Permanent Part Time & Regular/ Casual Staff Subscription Rate- Ordinary Members (Excluding GST)
2015
2014
2013
2012
2011
1,526 22 11 $3,017
1,543 23 10 $2,873
1,554 24 11 $2,736
1,569 25 11 $2,594
1,565 23 11 $2,470
Page 37
SUMMARY OF MEMBERS’ ACCOUNTS & MEMBERS’ FUNDS MOVEMENTS for the year ended 28th february 2015
2015 $000’s Income Subscriptions Other Income & Gross Margin From Trading Contribution Income Entrance Fee Donations from Members
2014 $000’s
2013 $000’s
2012 $000’s
2011 $000’s
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
2,334 1,246 303 12 3,895
2,141 1,834 3,975
2,116 1,818 3,934
2,046 1,745 3,791
1,960 1,656 3,616
1,958 1,557 3,515
Operating Surplus (Deficit) Before Transfers Members’ Funds & Reserves at Beginning of Year
225 9,006
178 8,828
198 8,630
1,715 6,915
380 6,535
Members’ Funds & Reserves at End of Year
9,231
9,006
8,828
8,630
6,915
Less Expenditure Wages and Salaries Other Expenses
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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
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