29 minute read
Financial Reports
2020/21 Financial Reports
GLENELG GOLF CLUB INCORPORATED AND CONTROLLED ENTITY ABN 94 199 789 857
NET INCOME
Note Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020
12 Months 15 Months 12 Months 15 Months
$
Membership
Subscriptions Entrance Fees Infrastructure Levy Bag & Buggy Storage Locker Fees
Golf Operations
Competition Fees Green Fees Cart Hire Affiliation Fees Trophies Professional Retainer (Pro Shop) Professional Retainer (Golf Operations) Professional Service Fees / Commissions Depreciation Other Golf Operations Expenses
Hospitality
Bar Sales Less Cost of Goods Sold Bar Gross Profit Catering Sales Less Cost of Goods Sold Catering Gross Profit Less Expenditure Salaries and Associated Costs
Other Expenses Depreciation
Other Income
Catering Levy forfeited Interest Received Phone Tower Miscellaneous COVID-19 Support Payments 2,273,425 2,161,538 2,273,425 2,161,538 171,200 205,293 171,200 205,293 312,261 306,994 312,261 306,994 75,110 77,976 75,110 77,976 9,670 11,377 9,670 11,377 2,841,666 2,763,178 2,841,666 2,763,178
66,060 94,349 66,060 94,349 296,433 576,822 296,433 576,822 107,494 142,091 107,494 142,091 (3,997) (17,992) (3,997) (17,992) (53,288) (68,286) (53,288) (68,286) (55,429) (67,976) (55,429) (67,976) (85,272) (104,575) (85,272) (104,575) (78,798) (113,233) (78,798) (113,233) (60,161) (82,909) (60,161) (82,909) (33,758) (75,141) (33,758) (75,141) 99,284 283,150 99,284 283,150
971,127 1,295,100 971,127 1,295,100 (361,363) (457,933) (361,363) (457,933) 609,764 837,167 609,764 837,167 1,036,143 1,572,109 1,036,143 1,572,109 (439,612) (659,428) (439,612) (659,428) 596,531 912,681 596,531 912,681
(1,086,134) (1,368,520) (1,086,134) (1,368,520) (99,996) (158,600) (99,996) (158,600) (28,480) (27,425) (28,480) (27,425) (8,315) 195,303 (8,315) 195,303
65,213 144,308 65,213 144,308 186 1,776 186 1,776 65,243 62,137 65,243 62,137 35,102 73,276 35,102 73,276 1(n) 671,500 - 671,500 - 837,244 281,497 837,244 281,497
TOTAL NET INCOME
3,769,879 3,523,128 3,769,879 3,523,128
EXPENDITURE
Note Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020
12 Months 15 Months 12 Months 15 Months
$
Administration and Support Services
Salaries and Associated Costs Audit Fees Marketing & Communications Depreciation Finance Costs Bank Charges & Merchant Fees Insurance Postage, Printing and Stationery Telephone Council Rates Legal and Consulting Travel and Accommodation Computer Consumables and Maintenance Other Administration Expenses
Course
Salaries and Associated Costs Maintenance Power Enhancement Irrigation Landscape Maintenance Machinery ASR Expenses Other Expenses Depreciation
House
Laundry Repairs and Maintenance Contract Cleaning Light, Power and Water Other House Expenses Depreciation
Other Expenses
(Profit)/Loss on Sale of Fixed Asset
TOTAL EXPENDITURE
NET SURPLUS / (DEFICIT)
Other Comprehensive Income
Change in market value of financial assets 1(b)
TOTAL COMPREHENSIVE INCOME FOR YEAR
569,141 630,997 569,141 630,997 13,550 10,800 13,550 10,800 26,501 115,718 26,501 115,718 48,515 30,858 48,515 30,858 3,787 15,133 3,787 15,133 50,977 60,477 50,977 60,477 30,746 45,698 30,746 45,698 17,039 23,338 17,039 23,338 16,088 15,758 16,088 15,758 52,968 65,936 52,968 65,936 150 19,697 150 19,697
15 10,999
15 10,999 90,611 86,588 90,611 86,588 124,446 130,056 124,446 130,056 1,044,534 1,262,053 1,044,534 1,262,053
884,144 1,070,355 884,144 1,070,355 253,993 354,505 253,993 354,505 98,604 118,216 98,604 118,216 69,677 71,554 69,677 71,554 41,541 40,787 41,541 40,787 18,585 36,521 18,585 36,521 105,640 98,900 105,640 98,900 37,928 53,084 37,928 53,084 76,534 78,671 76,534 78,671 313,703 369,157 313,703 369,157 1,900,349 2,291,750 1,900,349 2,291,750
7,876 14,121 7,876 14,121 100,646 56,906 100,646 56,906 68,158 68,060 68,158 68,060 100,701 162,575 100,701 162,575 53,607 65,626 53,607 65,626 209,627 259,335 209,627 259,335 540,615 626,623 540,615 626,623
(1,636) (26,316) (1,636) (26,316) (1,636) (26,316) (1,636) (26,316)
3,483,862 4,154,110 3,483,862 4,154,110
286,017 (630,982) 286,017 (630,982)
- 3,406,240
286,017 (630,982) 286,017 2,775,258
GLENELG GOLF CLUB INCORPORATED AND CONTROLLED ENTITY STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021
CURRENT ASSETS
Note Consolidated Golf Club
31-Mar-2020 31-Mar-2020 31-Mar-2021 31-Mar-2020
$
Cash & Cash Equivalents Trade & Other Receivables Other Current Assets Inventories Total Current Assets
NON-CURRENT ASSETS
Financial Assets Property, Plant and Equipment Right of Use Assets Total Non-Current Assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade & Other Payables Short-Term Provisions Short-Term Borrowings Short-Term Lease Liability Other Current Liabilities
Total Current Liabilities
NON-CURRENT LIABILITIES
2
917,391 449,882 917,391 449,882 3 243,062 1,417,494 243,062 1,417,494 88,566 108,181 88,566 108,181 4 96,580 123,935 96,580 123,935 1,345,599 2,099,492 1,345,599 2,099,492
5
- 8,432,945 8,432,945 6 6,078,798 6,133,503 5,375,094 5,429,799 7 374,024 412,368 374,024 412,368 6,452,822 6,545,871 14,182,063 14,275,112
7,798,421 8,645,363 15,527,662 16,374,604
8 407,349 603,943 406,783 603,377 9a 101,010 81,428 101,010 81,428 10a 10,000 - 10,000 - 11a 167,235 151,840 167,235 151,840 13 2,835,710 2,651,302 2,835,710 2,651,302
3,521,304 3,488,513 3,520,738 3,487,947
Long-Term Provisions Long-Term Borrowings Long-Term Lease Liability
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Revaluation of Shares at Fair Value Retained Earnings Outside Equity Interests in controlled entity
TOTAL EQUITY
9b 90,879 114,259 90,879 114,259 10b - 1,210,000 - 1,210,000 11b 379,904 312,275 379,904 312,275
470,783 1,636,534 470,783 1,636,534
3,992,087 5,125,047 3,991,521 5,124,481
3,806,334 3,520,317 11,536,141 11,250,124
- 7,748,512 7,748,512 3,778,587 3,492,570 3,787,629 3,501,612 27,747 27,747
3,806,334 3,520,317 11,536,141 11,250,124
Consolidated Entity Note Retained Reserves Outside Equity Total Earnings Interest
$
Balance at 1 April 2020 Adjustment to Entrance Fee - Accrued Revenue Profit attributable to members of controlling entity 1(f) 3,492,570 - 286,017 3,778,587 27,747 3,520,317 -
286,017 27,747 3,806,334
Balance at 1 April 2020 Revaluation of Shares (FVOCI) Change in Fair Value of Shareholding
Balance at 31 March 2021
Controlling Entity
Balance at 1 April 2020 Adjustment to Entrance Fee - Accrued Revenue Profit attributable to members of controlling entity
Balance at 1 April 2020 Revaluation of Shares (FVOCI) Change in Fair Value of Shareholding
Balance at 31 March 2021
Year End 2019-2020 Consolidated Entity
Balance at 1 January 2019 Adjustment to Entrance Fee - Accrued Revenue Loss attributable to members of controlling entity
Balance at 1 January 2019 Revaluation of Shares (FVOCI) Change in Fair Value of Shareholding 1(f)
1(f) 3,778,587
3,501,612 - 286,017 3,787,629
- 7,748,512 - - - 7,748,512
3,787,629 7,748,512
4,716,649 (593,097) (630,982) 3,492,570 27,747 3,806,334
- 3,501,612 -
286,017 - 3,787,629
- 7,748,512 - - - 7,748,512
- 11,536,141
27,747 4,744,396 - (593,097) - (630,982) 27,747 3,520,317
Balance at 31 March 2020
Year End 2019-2020 Controlling Entity
Balance at 1 January 2019 Adjustment to Entrance Fee - Accrued Revenue Loss attributable to members of controlling entity 1(f)
Balance at 1 January 2019 Revaluation of Shares (FVOCI) Change in Fair Value of Shareholding 3,492,570 27,747 3,520,317
4,725,691 (593,097) (630,982) 3,501,612
- 4,342,272 - 3,406,240 - 7,748,512 - 4,725,691 - (593,097) - (630,982) - 3,501,612
- 4,342,272 - 3,406,240 - 7,748,512
CASH FLOWS FROM OPERATING ACTIVITIES
Note Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020 $ $ $ $
Bar and Catering Sales Subscriptions and Entrance Fees Green Fees and Competition Fees Payments to Suppliers and Employees Interest Paid Donations, Fundraising and Other Sundry Receipts COVID-19 Support Payments
NET CASH INFLOW FROM OPERATING ACTIVITIES
2,007,270 2,867,209 2,007,270 2,867,209 4,016,098 1,678,941 4,016,098 1,678,941 469,987 813,262 469,987 813,262 (5,176,528) (4,739,089) (5,176,528) (4,739,089) (3,787) (15,133) (3,787) (15,133) 165,744 281,497 165,744 281,497
671,500
- 671,500
14 2,150,284 886,687 2,150,284 886,687
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for Property, Plant and Equipment Proceeds from Sale of Property, Plant and Equipment Share Purchase
NET CASH (OUTFLOW) FROM INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of Borrowing Additional Lease Established Drawdown on Bank Loan Repayment of Bank Loan
NET CASH PROVIDED INFLOW (OUTFLOW) FROM FINANCING ACTIVITIES
NET INCREASE / (DECREASE) IN CASH HELD
Cash at Beginning of Year
Cash at End of Year (567,435) (508,269) (567,435) (508,269)
1,636 26,851 1,636 26,851
- (45,000) - (45,000)
(565,799) (526,418) (565,799) (526,418)
2 (181,860) (227,155) (181,860) (227,155) 264,884 48,730 264,884 48,730 - 135,000 - 135,000
(1,200,000)
- (1,200,000)
(1,116,976) (43,425) (1,116,976) (43,425)
467,509 316,844 467,509 316,844
449,882 133,038 449,882 133,038
917,391 449,882 917,391 449,882
The 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 of South Australia. The financial report covers the consolidated entity of Glenelg Golf Club Inc (Club) as the individual controlling entity and the controlled entity, Glenelg Golf Links Limited (GGL). The financial report of Glenelg Golf Club Inc and the controlled entity and Glenelg Golf Club Inc as an individual controlling entity comply with all Australian equivalents to International Financial Reporting Standards (IFRS) in their entirety except where compliance is not mandatory for non-corporate entities. The financial report has been prepared on an accrual basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets. During the 2019/2020 year a Constitutional amendment was passed to change the Club’s financial year to align with the Club’s Membership year being 1st April to the 31st March. The 2020/2021 financial year is the first year the with the new 12 month period being applied. The 2019/2020 financial year reported a 15 month period from 1st January 2019 through to 31st March 2020. The following is a summary of the material accounting policies adopted by the consolidated entity in preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated.
a) Principles of Consolidation
The Club controls the share capital of Glenelg Golf Links Limited. The consolidated accounts incorporated the assets and liabilities of Glenelg Golf Links Limited as at 31 March 2021 and the results of GGL for the period then ended. The effects of all transactions between the Club and GGL are eliminated in full. Outside equity interests in the results and group equity are shown separately in the consolidated profit and loss account and balance sheet respectively. The cost of acquiring shares in Glenelg Golf Links Limited have been accounted for as an interest in the land owned by that company and reflected accordingly.
b) Financial Instruments
Financial assets and liabilities are initially recognised when the Club becomes a party to the contractual provisions to the instrument. For Financial assets, this is the date that the Club commits itself to the purchase or sale of the asset. Financial assets are initially measured at fair value, where the values in an active market are used to determine the value. A financial asset can be subsequently measured in three ways; amortised cost, fair value through other comprehensive income, or fair value through profit and loss. A financial asset is subsequently measured at fair value through other comprehensive income as it is irrevocably designated by Committee of Management (note 17b) to be treated in this way, with fair value adjustments to be made against a reserve in equity. As the value of the shares do not impact the business operating performance, the fair value adjustment need not impact operating surplus/deficit. A financial liability can be measured at amortised cost or at fair value through the Profit and Loss. In relation to the Club’s loan and Commercial Bill facilities they are measured at the amortised cost and the effective interest rate method is applied. This means the interest costs related to the debt are expensed in the Profit and Loss over the relevant period Changes to accounting standard AASB 9 have impacted the way that the Glenelg Golf Link Limited shares are to be reported in the 2019-2020, and all future Financial reports. Previously shares had been recorded at purchase price.
c) Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.
Property
Freehold land is shown at cost. Building is shown at cost less any accumulated depreciation and impairment losses.
Plant and Equipment
The depreciable amount of all fixed assets including building, but excluding freehold land, is depreciated on a straight line basis over their useful lives to the consolidated entity commencing from the time the asset is held ready for use. The depreciation rates for each class of depreciable assets are based on the following estimated useful lives, expressed in years:
Category
Administration furniture and fittings Bar plant and equipment Catering plant and equipment Clubhouse building Clubhouse other Course buildings Clubhouse plant and equipment Motor vehicles Office equipment Course plant and equipment Entrance road & Carpark Range Equipment
d) Impairment of Assets Useful Lives
5-11 8-11 7-11 40-50 7-11 4-25 8-11 4-5 5-7.5 4-11 15 5-10
At each reporting date, the Committee of Management reviews the carrying values of its assets to determine whether there is any indicators of impairment. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell or value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is recognised immediately to the profit and loss statement. Where it is not possible to determine the recoverable amount of an individual asset, the Committee of Management estimates the recoverable amount of the cash-generating unit to which the asset belongs.
e) Employee Benefits
Provision is made for the association’s liability for employee benefits arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, annual leave and long service leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those entitlements.
f) Subscription & Entrance Fee Income
Subscription revenue is recognised in the profit and loss statement in the Membership year it relates to. The Membership year runs in-line with the Financial year of the 1st April through to 31st March of the following year. Changes to AASB 15 Revenue from Contracts with Customers came into effect from the 1st January 2019. Entrance Fees recognition - the cumulative effective method of initially applying AASB 15 as an adjustment to the opening balance of equity at 1st January 2019 has been used, and therefore comparative information has not been restated and continues to be presented under AASB 118. Entrance Fee income has been adjusted to be apportioned to the expected average tenure of the membership. This has been applied retrospectively and brought to account through an adjustment to prior accumulated earnings. The impact is a reduction in Retained Earnings of $593,097 which is to be applied to future years. Entrance fees received in 2019/2020 and future years, will be put to a liability account (Note 13 - Entrance Fees - Accrued) to be apportioned over future years. A 10 year average has been applied to Provisional, Six Day, Weekday and Company member Entrance Fees. A 5 year average has been applied to Country, Casual and Intermediate member Entrance Fees. Junior Entrance Fees are applied at time of invoicing as the spread of these payments is already applied.
g) Income Tax
The Club is exempt from Income Tax in accordance with Section 50-5 of the Income Tax Assessment Act, 1997.
h) Inventories
Inventories are measured at the lower of cost and net realisable value. No provision has been made for slow moving inventory, but shall be accounted for if required.
i) Course Redevelopment Expenditure
Expenditure incurred on redevelopment of the course is recognised as an expense in the profit and loss statement as incurred, unless it is capital in nature, in which case it is capitalised in accordance with the capital expenditure definition.
j) Construction - Work In Progress
Construction work in progress is stated at the aggregate of contract costs incurred to date and included if applicable, as part of Property, Plant & Equipment.
k) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.
l) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.
m) Leases - Right of Use Assets
The Change to AASB 16: “Leases” became applicable from 1 January 2019 for Leases with more than 12 months remaining. This has an impact on the previously noted Operating Leases the Club holds for Golf Carts and Course Equipment. This has involved the initial transaction to bring on a lease liability discounted to the present value of the remaining lease payments at the commencement date. The interest rate used for the new leases in 2020-2021 is 3.99% (2019-2020: 3.99%), which is the interest rate applicable to the newest bank contract entered into during the year. Interest and principal are applied on an incremental basis for the remaining life of the lease. A corresponding Right-of-use Asset is to be recorded in the Balance Sheet based on the value of the lease liability recorded. This Right-of-use Asset is depreciated over the lease term or in a straight line basis over the useful life of the asset, whichever is the shortest.
n) Other Income - Covid-19 Support Payments
During the 2020/2021 year, the Federal Government introduced some stimulus programs in response to the impact of COVID-19 on businesses. As part of the programs the Club was eligible for a one off “Cash Flow Boost” of $100,000, with payments spread over the period from April through to September. The Club also qualified for wage subsidies through the JobKeeper program, payments in relation to this program totalled $571,500. These stimulus amounts have been reported separately and included as Other Income. The wages paid to staff have been reported without deduction of JobKeeper subsidies and included in the Statement of Comprehensive Income in the departments they relate to.
Note Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020 $ $ $ $
NOTE 2 - CASH & CASH EQUIVALENTS
Cash at Bank Cash on Hand Heritage Fund - Bank Account 700,396 422,963 700,396 422,963 3,050 3,439 3,050 3,439 13 213,945 23,480 213,945 23,480 917,391 449,882 917,391 449,882
The effective interest rate on short-term bank deposits was 0.15% (2019-2020: 0.15%); these deposits have an average maturity of 20 days. The Heritage Fund holds funds donated and bequeathed to the Club for specific projects that are identified and approved by the Committee of Management these funds are not available for funding operational activities.
Reconciliation of Cash
Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the balance sheet as follows:
Cash & Cash Equivalents 917,391 449,882 917,391 449,882
NOTE 3 - TRADE & OTHER RECEIVABLES
Subscription Debtors House Account Sundry Debtors
NOTE 4 - INVENTORIES
48,984 1,337,249 48,984 1,337,249 131,737 74,764 131,737 74,764 62,341 5,481 62,341 5,481 243,062 1,417,494 243,062 1,417,494
Bar Stock Catering Stock Course Stock
NOTE 5 - FINANCIAL ASSETS
65,842 69,149 65,842 69,149 13,854 20,251 13,854 20,251 16,884 34,535 16,884 34,535 96,580 123,935 96,580 123,935
Shares - Glenelg Golf Links Ltd Loan - Glenelg Golf Links Ltd Total Financial Assets - 8,431,840 8,431,840 - 1,105 1,105 - 8,432,945 8,432,945
Per changes to Accounting standard AASB 9 in relation to Financial Instruments, the shares held in Glenelg Golf Links Ltd are now recognised at balance date at Fair Value, with the value being based on the last sale price recorded. There were no sales in 2020-2021 and no change in value has been recorded, the last sale was in 2019/2020 - $302.00 per share (2018 $180.00 per share) the revaluation of these shares is carried through Other Comprehensive income and a reserve on the Balance Sheet.
Note
NOTE 6 - PROPERTY, PLANT & EQUIPMENT
Freehold land Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020 $ $ $ $
703,704 703,704
Clubhouse Less Accumulated Depreciation
6,246,462 6,126,122 6,246,462 6,126,122 (2,472,845) (2,317,401) (2,472,845) (2,317,401) 3,773,617 3,808,721 3,773,617 3,808,721
Clubhouse Plant and Equipment Less Accumulated Depreciation
792,503 730,354 792,503 730,354 (692,789) (638,623) (692,789) (638,623) 99,714 91,731 99,714 91,731
Course Buildings Less Accumulated Depreciation
475,990 469,138 475,990 469,138 (326,056) (309,631) (326,056) (309,631) 149,934 159,507 149,934 159,507
Administration Plant and Equipment Less Accumulated Depreciation
Bar Plant and Equipment Less Accumulated Depreciation
Catering Plant and Equipment Less Accumulated Depreciation
Golf Carts Less Accumulated Depreciation
Course Plant and Equipment Less Accumulated Depreciation 580,880 526,310 580,880 526,310 (425,621) (377,106) (425,621) (377,106) 155,259 149,204 155,259 149,204
198,346 194,173 198,346 194,173 (164,432) (156,911) (164,432) (156,911) 33,914 37,262 33,914 37,262
423,439 385,266 423,439 385,266 (369,932) (348,973) (369,932) (348,973) 53,507 36,293 53,507 36,293
114,588 114,588 114,588 114,588 (113,898) (94,558) (113,898) (94,558) 690 20,030 690 20,030
4,492,664 4,353,113 4,479,451 4,339,900 (3,746,829) (3,610,251) (3,733,616) (3,597,038) 745,835 742,862 745,835 742,862
Entrance Road & Carpark Less Accumulated Depreciation 588,056 572,283 588,056 572,283 (346,119) (323,001) (346,119) (323,001) 241,937 249,282 241,937 249,282
Capital Improvements Less Accumulated Depreciation
1,163
1,163 1,163
1,163 (1,060) (1,045) (1,060) (1,045) 103 118 103 118
Range Equipment Less Accumulated Depreciation 284,642 271,178 284,642 271,178 (164,058) (136,389) (164,058) (136,389) 120,584 134,789 120,584 134,789
TOTAL PROPERTY, PLANT AND EQUIPMENT 6,078,798 6,133,503 5,375,094 5,429,799 Glenelg Golf Club Incorporated ABN 94 199 789 857
NOTE 6 - PROPERTY, PLANT & EQUIPMENT (CONT.)
b) Movement in Carrying Amount
Movement in the carrying amounts for each class of property, plant & equipment between the beginning and the end of the current financial year.
Golf Club
Carrying amounts at 1
April 2020 Additions Disposals Depreciation
Write Back of Accumulated Depreciation
Carrying amount at 31 March 2021
Clubhouse
3,808,721 120,340 - (155,444)
- 3,773,617
Clubhouse Plant & Equipment
91,731 62,149 - (54,166)
- 99,714
Course Buildings
159,507 6,852 - (16,425)
- 149,934 Administration Plant & Equipment 149,204 54,570 (11,215) (48,515) 11,215 155,259 Bar & Plant Equipment 37,262 4,173 - (7,521) - 33,914 Catering Plant & Equipment 36,293 38,173 - (20,959) - 53,507 Golf Carts 20,030 - - (19,340) - 690 Course Plant & Equipment 742,862 139,551 - (136,578) - 745,835 Entrance Road & Carpark 249,282 15,773 - (23,118) - 241,937 Range Equipment 134,789 13,464 - (27,669) - 120,584 Capital Improvements 118 - - (15) - 103 5,429,799 455,045 (11,215) (509,750) 11,215 5,375,094
Carrying amounts at 1 January 2019 Additions Disposals Depreciation
Write Back of Accumulated Depreciation
Carrying amount at 31 March 2020
Prior year Property, Plant & Equipment 5,510,530 508,269 (99,061) (588,464) 98,525 5,429,799
Consolidated Entity
Carrying amounts at 1
April 2020 Additions Disposals Depreciation
Write Back of Accumulated Depreciation
Carrying amount at 31 March 2021
Freehold Land*
703,704
- 703,704
Clubhouse 3,808,721 120,340 - (155,444) - 3,773,617
Clubhouse Plant & Equipment 91,731 62,149 - (54,166)
- 99,714 Course Buildings 159,507 6,852 - (16,425) - 149,934 Administration Plant & Equipment 149,204 54,570 (11,215) (48,515) 11,215 155,259 Bar & Plant Equipment 37,262 4,173 - (7,521) - 33,914 Catering Plant & Equipment 36,293 38,173 - (20,959) - 53,507 Golf Carts 20,030 - - (19,340) - 690 Course Plant & Equipment 742,862 139,551 - (136,578) - 745,835 Entrance Road & Carpark 249,283 15,773 - (23,118) - 241,938 Range Equipment 134,789 13,464 - (27,669) - 120,584 Capital Improvements 118 - - (15) - 103 6,133,503 455,045 (11,215) (509,750) 11,215 6,078,798
Carrying amounts at 1 January 2019 Additions Disposals Depreciation
Write Back of Accumulated Depreciation
Carrying amount at 31 March 2020
Prior year Property, Plant & Equipment 6,169,230 553,269 (99,061) (588,460) 98,525 6,133,503
* The Freehold Land at 31st March 2021 is recorded at a carry forward value from prior years. This value will increase as a result of the purchase of equity in Glenelg Golf Links Limited which owns the land on which the golf course is situated. This will also include a reduction applied to reflect the reduction in Share Capital of outside equity interests.
c) Impairment Losses
Given there were no indicators of impairment, there were no impairment losses recognised in current year (2019/2020: nil).
Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020 $ $ $ $
NOTE 7 - RIGHT OF USE ASSETS
Golf Carts Accumulated Depreciation Course Equipment Accumulated Depreciation
47,128 47,128 47,128 47,128 (29,592) (16,440) (29,592) (16,440) 658,851 546,461 658,851 546,461 (302,363) (164,781) (302,363) (164,781) 374,024 412,368 374,024 412,368
Per changes to AASB 16 (effective January 2019) - the Operating Leases in place for Golf Carts and Course Equipment are required to be recorded as a Right of Use Asset and depreciated on a straight line basis over the life of the lease. Asset Value 31/3/21
Golf Carts
Lease for 6 Golf Carts expiring July 2022 - no view to extension or purchase Course Equipment Lease for Toro machinery expiring July 2021 - equipment purchase option available Lease for Toro machinery expiring April 2023 - equipment purchase option available Lease for Toro machinery expiring July 2024 - equipment purchase option available Lease for Toro machinery expiring Nov 2025 - equipment purchase option available
$17,536 $10,487 $77,738 $163,366 $104,897 $374,024
Golf Carts
Depreciation charged related to right-of-use assets Interest Expense on Lease Course Equipment Depreciation charged related to right-of-use assets Interest Expense on Lease 2020-2021 2019-2020 $ $
13,152 1,017 137,582 16,702
16,440 1,989 126,136 17,776
NOTE 8 - TRADE & OTHER PAYABLES
Trade Creditors Other Creditors 335,760 546,248 335,760 546,248
71,589 57,695 71,023
57,129 407,349 603,943 406,783 603,377
NOTE 9 - PROVISIONS
a) Short-Term Provisions - Annual Leave
Opening Balance Additional Provisions Raised Amounts Used
81,428 74,857 81,428 74,857 123,804 106,482 123,804 106,482 (104,222) (99,911) (104,222) (99,911) 101,010 81,428 101,010 81,428
Note Consolidated Golf Club 2019-2020 2018 2019-2020 2018 $ $ $ $
b) Long-Term Provisions - Long Service Leave
Opening Balance Additional Provisions Raised Amounts Used 114,259 121,157 114,259 121,157 23,765 16,013 23,765 16,013 (47,145) (22,911) (47,145) (22,911) 90,879 114,259 90,879 114,259
NOTE 10 - BORROWINGS
a) Short-Term Borrowings
Bank Loan
10,000 10,000
- 10,000 - 10,000
b) Long-Term Borrowings
Bank Loan - 1,210,000
- 1,210,000 - 1,210,000 - 1,210,000 The Club has a loan facility of $2,200,000 which is secured by registered mortgages over land owned by Glenelg Golf Links Limited. At 31 March 2021, $10,000 of the Club’s facility was utilised (31 March 2020: $1,210,000).
NOTE 11 - LEASE LIABILITIES
(a) SHORT-TERM LEASE LIABILITIES
Lease Liabilities
(b) LONG-TERM LEASE LIABILITIES
Lease Liabilities
NOTE 12 - LEASE LIABILITIES
Lease Commitments Payable - minimum lease payments within 12 months between 12 months & 5 years greater than 5 years Minimum Lease Payments
Less Future Finance Charges Present Value of Minimum Lease Payments
NOTE 13 - OTHER CURRENT LIABILITIES
Membership in Advance Entrance Fees - Accrued Function Deposits Catering levy unabsorbed Trophy account Foundation - Junior & Infrastructure Funds Heritage Fund 2 167,235 151,840 167,235 151,840 167,235 151,840 167,235 151,840
379,904 312,275 379,904 312,275 379,904 312,275 379,904 312,275
186,327 167,669 186,327 167,669 400,608 330,521 400,608 330,521
2,430
- 2,430 - 589,365 498,190 589,365 498,190
(42,226) (34,075) (42,226) (34,075) 547,139 464,115 547,139 464,115
1,581,488 1,818,854 1,581,488 1,818,854 805,720 614,776 805,720 614,776 67,588 47,895 67,588 47,895 6,236 13,024 6,236 13,024 42,443 36,674 42,443 36,674 118,254 96,599 118,254 96,599 213,981 23,480 213,981 23,480 2,835,710 2,651,302 2,835,710 2,651,302
NOTE 14 - RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH PROFIT FROM OPERATING ACTIVITIES
Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020 $ $ $ $
Profit from Ordinary Activities
Non cash flows in profit from ordinary activities
Depreciation
Provision for Employee Benefits (Profit)/Loss on Sale of Non Current Assets 286,017 (630,982) 286,017 (630,982)
660,484 769,685 660,484 769,685 (3,798) (327) (3,798) (327) (1,636) (26,316) (1,636) (26,316)
Changes in Assets & Liabilities
(Increase)/Decrease in Debtors 1,174,432 (1,084,237) 1,174,432 (1,084,237)
Increase/(Decrease) in Trade Creditors and Accrued Expenses (12,186) 1,842,859 (12,186) 1,842,859 (Increase)/Decrease in Other Current Assets 19,615 (48,698) 19,615 (48,698)
(Increase)/Decrease in Inventory 27,355 64,703 27,355 64,703
Net Cash Inflow from Operating Activities 2,150,284 886,687 2,150,284 886,687
NOTE 15 - FINANCIAL INSTRUMENTS
a) Interest Rate Risk
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 on those financial assets and liabilities, is as follows:
Weighted Average Effective Interest Rate
Floating Interest Rate Fixed Interest Rate Maturing Within 1 Year 1 to 5 Years
2020-2021 2019-2020 2020-2021 2019-2020 2020-2021 2019-2020 2020-2021 2019-2020
Financial Assets
Cash at Bank 0.15 0.15 700,396 422,963 700,396 422,963
Financial Liabilities
Borrowings 4.1 4.85 - 10,000 - 10,000 - 1,210,000 - 1,210,000
b) Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the Balance Sheet and notes to the financial statements.
c) Net Fair Values
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are not materially different from those disclosed in the Balance Sheet and in the notes to and forming part of the accounts. d) The Club has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these risks. At 31 March 2021, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant would be as follows: Glenelg Golf Club Incorporated ABN 94 199 789 857
Change in Profit
Increase in the interest rate by 2%
Decrease in the interest rate by 2% Consolidated Golf Club 2020-2021 2019-2020 2020-2021 2019-2020 $ $ $ $
(200) (24,200) (200) (24,200) $200 24,200 200 24,200
Change in Equity
Increase in the interest rate by 2%
Decrease in the interest rate by 2% (200) (24,200) (200) (24,200) 200 24,200 200 24,200
NOTE 16 - AUDITOR’S REMUNERATION
Remuneration of the Auditor of the parent entity for:
Auditing & Reviewing the financial report 11,000 13,350 11,000 13,350 11,000 13,350 11,000 13,350
NOTE 17 - RELATED PARTIES
a) The Club paid rent of $0 to Glenelg Golf Links Limited in which it has a majority shareholding, for use of the Golf Course (2019-2020 - $0). b) The names of the persons who were officers of Glenelg Golf Club Incorporated at any time during the period ended 31 March 2021 and formed the Committee of Management are as follows:
Bevan M. Roberts (Captain) Greg C. Rundle (Captain) Imelda C. Lynch (Vice-Captain) Carolyn J. Dillon Paul M. Gander Paul J. Grosvenor Sid S. Kookana Scott Petherick Ben Winton Term Completed June 2020 Elected June 2020 Elected June 2020 Elected June 2020 Elected March 2018 Elected March 2019 Elected March 2019 Elected June 2020 Elected June 2020
During the period there were no related party transactions.
NOTE 18 - CONTINGENT LIABILITIES
The Club’s objection to the land tax assessment for 2019/20 was upheld and therefore no expense or accrual has been recognised in relation to 2020/21 land tax. The Club understands that Revenue SA intends to review the eligibility for an exemption from land tax at the end of each financial year.
NOTE 19 - AFTER BALANCE DATE EVENTS
There were no after balance date events that need to be brought to the attention to the users of the accounts, however it is noted that the impacts of the COVID-19 pandemic continue to have a minor impact on operations. With border restrictions and capacity restrictions still being implemented from time to time.
NOTE 20 - ASSOCIATION DETAILS
The principal place of business of the association is 20-118 James Melrose Road, Novar Gardens, South Australia, 5040.
NOTE 21 - CAPITAL EXPENDITURE COMMITMENTS
Capital expenditure commitments contracted for:
Plant & Equipment Purchases Capital Expenditure Projects
Payable: within 12 months between 12 months and five years greater than 5 years
Appropriate financing is in place, and from time to time the Committee of Management reviews the debt position (and takes action as necessary) to ensure the Club remains viable and can continue as a going concern. The Club’s debt and capital includes financial liabilities, supported by financial assets. The bank loans are secured by registered mortgages over the land and this forms an imposition on capital requirements. (Note 10) The committee members effectively manage the Club’s capital by assessing the Club’s financial risks and adjusting its capital structure in response to changes in these risks and in the market. The responses include the management of debt levels.
There have been no changes in the strategy adopted by management to control the capital of the Club since the prior year. This strategy is to ensure that there is sufficient cash to meet trade and sundry payables and borrowings.
NOTE 22 - CONTROLLED ENTITIES
2020-2021 2019-2020
Controlling Entity
Glenelg Golf Club Inc
Controlling Entity
Glenelg Golf Links Ltd Country of Incorporation Percentage Owned (%) *
Australia
Australia 63.5% 63.5%
* percentage of voting power in proportion to ownership
In the opinion of the Committee of Management of Glenelg Golf Club Incorporated:
(a) The attached consolidated statements of Glenelg Golf Club Incorporated, comprising the balance sheet, income statement, statement of changes in equity, statement of cash flows and notes to the financial statements for the period ended 31 March 2021 are, in our opinion, properly drawn up so as to give a true and fair view of the state of affairs of the Club and the consolidated entity as at 31 March 2021, and of their results for the year then ended.
(b) At the date of this statement there are reasonable grounds to believe that the Club will be able to pay its debts as and when they fall due.
The accounts have been made out in accordance with applicable Accounting Standards.
In accordance with section 35(5) of the Associations Incorporations Act, 1985, the Committee of Glenelg Golf Club Incorporated hereby states that during the financial period ended 31 March 2021:
There were no related party transactions.
This report is made in accordance with a resolution of the Committee of Management and signed by two Members of the Committee.
Dated this 20th day of May 2021.
Greg Rundle Captain Sid Kookana Committee Member
