Finance

The period ended the 31st March 2021, saw the first Financial Year reported under the new timing of 1st April through to the 31st March. This reporting period brings our financial year in-line with our membership year. It is the second period of reporting that includes the extensive changes made in the prior year due to Accounting Standard changes. 2019/2020 was a 15 month reporting period, with the Constitutional changes around financial year timing being transitioned, which makes a close comparison between years difficult. This comparison is further impacted by the significant effects of the COVID-19 pandemic on the 2020/2021 financial results.

The period ended the 31st March 2021 reported an operating profit of $286,017. Total equity increased to $11,536,141. The Club’s cash position increased by $467,509, with $917,391 available at period end. Cash flow generated from operating activities was used to fund the Club’s capital expenditure programs for the year and assisted with debt reduction. Total net income for the period was $3,769,879, with total expenditure for the year at $3,483,862. The loan facility remains at $2,200,000 with $10,000 drawn down at balance date. The Club entered into a new lease agreement and a new chattel mortgage agreement for Toro course equipment. Overall, the Club’s total debt level decreased by $1,116,976 to $557,139. Capital expenditure for the year was $455,045, with a key project undertaken this year being the renovations to the internal Clubhouse area. The forced Clubhouse closure due to COVID-19 provided an opportunity to renovate the upstairs bathrooms and replace carpet throughout the building. The bar and bistro was refurbished with new cabinetry and equipment in the Bistro kitchen. Administration saw a number of PC’s replaced, the construction of a new website and the purchase of a new photocopier. The course added a new ute to the fleet, and various pieces of equipment including the Toro ProCore & Rake-o-vac.

Membership income continued to positively increase on prior years, with $2,841,666 reported for the period. Subscription income increased 5.2% over the prior period, driven by the strong interest from new Members joining the Club. A total of $361,964 was invoiced for Entrance Fees in 2020/2021, after the adjustments were applied to allow for the changes to Entrance Fee reporting (introduced in 2019/2020), the reportable amount for the 2020/2021 year was $171,200, with an increase of $190,944 to the Liability account to be applied over future years. Golf Operations revenue was impacted heavily due to COVID-19, reporting a $99,284 surplus for the period. The course was completely closed to visitors from late March 2020 through to the end of June 2021. On 1st July, Members’ guests were allowed back on the course in a very restricted capacity, with

Members teeing off on the 17th Photo: David Brand

this being eased as the year went on. Green fees generated from Corporate golf days as group bookings was 36% of the total green fee revenue, a significant decrease on previous years. Hospitality operations reported an operating loss of $8,315. This area of operations was the most heavily impacted by the COVID-19 pandemic. The Clubhouse was forced to close from 23rd March, with restricted trading being allowed to commence in June 2020. In the initial instance all hospitality staff were stood down, but the introduction of the Jobkeeper program allowed a majority of staff to be brought back to a certain level, with their role descriptions changing significantly. The expense of wages is reported without applying any of the Jobkeeper subsidies, which have been included separately in Other Income. Our function business was non-existent for a large part of the year, with confidence around changing capacity levels and border restrictions meaning that functions were deferred, as the level of certainty increased this part of operations began to build back up. Function revenue equated to 34% of total revenue for hospitality operations. Other income included the COVID-19 support payments, received through the ATO of $671,500. The Club received a one off “Cash flow boost” of $100,000 along with the Jobkeeper wage subsidy to the total of $571,500. These subsidies played a vital role in the Club’s ability to maintain staff levels, ensure the course was presented at a high standard throughout the year, and the Clubhouse staff could remain engaged with the Club. Prior year included two years of forfeited Catering Levy over the 15 month period, the current year only included the single year. Expenditure for the year was in Administration of $1,044,534, Course of $1,900,349 and House for $540,615. Wage expenses were included in these departments prior to any wage subsidies being applied from Jobkeeper. Staff levels in Administration and Course were kept at normal levels, with days being staggered during the closure. An average monthly spend calculation shows an increase of 4% on prior year costs. House expenditure for Repairs and Maintenance saw a significant increase, with the opportunity to repaint and rejuvenate the interior of the Clubhouse being undertaken during the closure. A new cleaning contract was entered into once the Clubhouse reopened, with an increased budget to ensure the level of service provided meets member expectations. Trade and other payables totalled $406,783, compared with $603,377 in the previous year. A change to the way the Membership Renewals were billed at the end of the year, saw a change to the way Receivables are recorded, hence the receivable balance at year end being $243,062 against $1,417,494 in the prior year.

2020 Club Championships Photo: David Brand