Rosebud Country Club Annual Report 2020/2021 by RosebudCountryClub

Rosebud Country Club 2020/2021

ANNUAL REPORT

Rosebud Country Club A.B.N. 6804558356 Boneo Road, Rosebud Victoria, Australia 3939 Telephone (03) 5950 0800

info@rosebudcountryclub.com.au www.rosebudcountryclub.com.au

Rosebud Country Club 2020/2021

ANNUAL REPORT

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

PRESIDENT'S REPORT The last 12 months has seen the continuing roller coaster ride driven by the COVID-19 pandemic. We started September 2020 in lockdown and despite re-opening on 19th October 2020, there was an ever present feeling that another lockdown could occur anytime. We also ended the financial year in lockdown. Through all of the challenges that have been thrown at us, the Board and Management remained focused on the things that we can control. Our 4 key objectives were: (a) caring for and looking after our staff (b) keeping our facilities in first class condition, (c) closely managing our expenses (d) keeping Members informed through regular communications Other significant achievements throughout the year include: Our Strategic Plan as released to Members. Our Vision is “To be the Mornington Peninsula’s leading destination for golf and entertainment in a relaxed and friendly environment”. We have identified the following 6 key focus areas as we strive to achieve Our Mission: Playing Facilities, Clubhouse Facilities, Membership, Marketing, Financial Sustainability and Corporate Governance.

The Risk Management Plan has been completed with Action Plans established where appropriate inclusive of a Tree Management Report identifying dangerous trees throughout the property. During the past year we hosted the inaugural and highly successful The Players Series (TPS) hosted by Geoff Ogilvy. TPS served as a significant reminder to the golfing industry that RCC is a “hidden gem” on the Mornington Peninsula and a must visit golfing destination. The feedback our Club received from the players, PGA of Australasia, WPGA and Golf Australia was extremely complimentary, and we look forward to the 2nd event in February 2022. We also hosted the Blind Golf Victoria Championship, however, the European Tour Qualifying School event scheduled for September 2021 was again cancelled due to the impact of the COVID-19 pandemic. Also, our Bowls section celebrated success with a Premiership in Division 2 and Runners Up in Division 3.

The Players Series Hosted by Geoff Ogilvy was a huge success PAGE 1

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

OCM Master Plan works on 2 North

Membership growth was again very strong with 319 new Members inducted over the past 12 months, growth of 23%. However, at the time of writing there has been a larger than expected drop in Members renewing memberships for the next 12 months. Uncertainty around travel restrictions, the ban on golf and limitations to our Clubhouse operation appear to be the major reasons. The golf courses and Bowls facility continue to be superbly managed as Ian, Damien and their team implement parts of the Course Master Plan. It is expected that the main focus over the next 12 months will be on those works that can be implemented in house by our staff. Having said that, our course architects, OCM recently completed some bunkering works on the front 9 of the North Course in early October 2021. The Boneo Road development opportunity is still to be realised and if successful, will provide the largest capital inflow ever seen at RCC. The Property Advisory Committee has spent the past 10 months negotiating the specifics of a Lease Agreement with the Ingenia Group. Negotiations have taken longer than expected, however, there is only one opportunity to achieve the best possible outcome for RCC.

At the time of writing it is looking very promising that the terms and conditions will be agreed by the end of November 2021. We will update Members as soon as we have meaningful information to share with you. It goes without saying that a successful outcome from the negotiations with Ingenia will significantly improve how the Club looks and operates in the future. It would be far better if we could complete a development on the vacant land to provide financial security and give future Board’s control of our own destiny. I would like to take this opportunity to thank our CEO, Danny McGrath, along with his Management team and staff for their tireless efforts over the past year. Despite the uncertainty around the lockdowns, our staff have been steadfast in their commitment to our Club. Their commitment to undertake whatever tasks that were required under very trying conditions once COVID-19 arrived were very much appreciated. In particular, a personal thank you to Danny for your unwavering commitment to RCC. Your elevation from General Manager to CEO during PAGE 2

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

the year is a reflection of your dedication and leadership in responding to the ever-changing trading conditions and efforts in keeping Members informed which were vital in managing our Club’s operations. The many emails and phone calls of support and praise that Danny received from Members were very much appreciated. Further to our Course Superintendent, Ian Todd, Assistant Course Superintendent, Damien Winsor and their course staff are to be congratulated on the ongoing development of the golf courses and surrounds over the past 12 months. The feedback from Members evidences our appreciation of the work you do. The response from all involved in The Players Series confirms how lucky we are to have you all as part of the RCC team. Thank you to the Women's Committee for your continued hard work. Unfortunately a large number of your major events were cancelled this year and like you I look forward to them returning next year. Congratulations and thank you to Women's President, Sue Giles, and the Women's Committee for your continued dedication to Women's golf at RCC. To our Bowls President Marilyn Baker, the Bowls Committee and Members, I wish you continued success over the coming season.

To Dads Army and the Garden Girls, thank you for your tireless efforts during an interrupted year. Hopefully we will see you back helping Ian out on the course and around the clubhouse in the near future. To our Members, thank you for your ongoing commitment to your Club. It hasn’t been easy and in the main you have accepted what the Board has had to do to ensure the Club survives and then thrives into the future. I am extremely grateful for your ongoing support for our Club. Finally, I am extremely grateful to my fellow Directors, Russell Christian, Eileen Naylor, Bruce Mathrick, Pete Meuleman, Gary Buckenara and Keith Dargavel, for your support over the past 12 months. There have certainly been highs and lows along with many challenges during the year but we never lost sight of acting in the best interests of our members and the Club’s financial position. Both Russell (4 years on the Board) and Keith (5 years on the Board) are retiring at the upcoming AGM. A huge thank you to Russell and Keith for your contribution to RCC whilst you were a Board Member. Ross Heinrich President

Ian Todd and his team with the winners of The Players Series hosted by Geoff Ogilvy PAGE 3

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

CAPTAIN'S REPORT Whilst not the year we hoped to have, we as a club are none the less forging forward despite the adversity we have been faced with. Once again, the members have shone through and shown their faith and loyalty to Rosebud Country Club and have been there for our club when it needed them the most. Our courses throughout the year continued to improve both in playability and aesthetically. Thank you to the dedication of the Course Superintendent Ian Todd, Assistant Superintendent Damian Winsor and the entire ground staff, raising the status of RCC throughout the district and indeed the country and contributing to a membership growth not experienced before.

As always a big thanks to our many volunteers that ‘give back’ to our club. Dad’s Army, The Garden Girls, Junior Program helpers, Major Event Volunteers, Sub Committee Members, Pennant Players, Managers and Caddies all give their time and expertise that contribute to making our club a great club within the district. Their dedication to our club often goes unheralded but is always noticed. Special mention goes to all our competitive golfers that represent Rosebud Country Club at various levels throughout the year. They wear the RCC badge with pride and are all great ambassadors for our club.

GPV Division One Pennant Winners PAGE 12

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ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

I must highlight our Division 1 Men’s Pennant Team for their outstanding efforts in winning Pennant three years in a row. I am incredibly proud of all these players and wish for all our members to get behind their team. Fantastic to see what has become our flagship event, The Players Series run so well in its first year, and to see our course present so well on FOXTEL & KAYO. Lockdowns put a damper on many of the Club's Honour Board events, with many having to be cancelled. Even the Club Championships wasn't spared, with the Men's A Grade having to revert to a three round event.

Congratulations go to the following winners of the Men's Championships: C Grade Nett – Jude Farrelly (212 nett) C Grade – Nick Conduit (281 gross) B Grade Nett – Steve Bird (217 nett) B Grade – Brad Smedley (257 gross) Super Senior – Peter Wild (259 gross) Senior – Graham Carlos (238 gross – playoff over Darren Naylor) A Reserve – Phil Loomes (242 gross) Junior– Adam Carafa (238 gross – playoff over Bailey Dunn) A Grade Nett – Wayne Pascoe (209 nett) A Grade – Greg Wilson (217 gross) Lastly a sincere thanks to my fellow Board Members for their tireless work throughout the year and for the support of our hardworking staff led by CEO Danny McGrath and Operations Manager Heath Whittaker. May the rest of 2021 and 2022 continue without a hitch. Pete Meuleman Captain

Men's Club Champion Greg Wilson

Junior Champion Adam Carafa

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Jude Farrelley teeing off in the final round of the C Grade Championships

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

TREASURER'S REPORT The 2021 financial year proved to be just as challenging as we predicted at this time last year.

The two significant items of JobKeeper and write back of provisions prevented us from otherwise reporting a loss for 2021. Flexibility and regular review of trading restrictions were necessary throughout the year as lockdowns occurred without warning and were often extended for longer periods than originally announced.

The budget process went through numerous amendments but finally proved to be unworkable due to the unpredictability of the lockdowns. While the Board did not abandon the budget, it was forced to look at the month by month results in the context of the previous year, given similar prevailing trading conditions.

REVENUE At the time of preparing the 2021 budget we predicted a potential loss of income of $1.6 million and in the chart below using the 2018/19 revenue data has highlighted the loss of revenue for 20/21 against the “Baseline Revenue” for 18/19 of approximately $1.58 million.

Fortunately, the result for the club has been better than we expected, primarily due to JobKeeper payments of $472,050 in 20/21 enabling us to report a profit of $5,346 for the year ended August 31, after setting aside a pandemic provision of $165,000.

The chart depicts Gross Operating Contribution after Cost of Goods Sold (COGS) which are particularly relevant to Catering, Bar and Golf Operations and reflect purchases of meats and produce, beverage and golfing apparel and merchandise.

This year’s result has been positively affected by the capacity to write back some of the provision from 19/20 which was put aside for member compensation for lost golf in 2020 but not taken up by all eligible members.

2,500

Revenue after COGS ($000) 2018/19

2019/20

2020/21

2,000

2,082 1,875

1,500

1,576 1,243

1,000

952

887

500 0

557

508

Catering

875 641

Bar

687

552

Gaming

750

715

Golf Ops

Admin PAGE 6

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

Using the fiscal year ended 2019 Gross Operating Contribution as Baseline Revenue, demonstrated that the business model was working in a manner that promised positive times ahead for RCC. Indeed, the first six months of the fiscal 19/20 produced one of the best, if not the best, six months against budget in the club’s history. Unfortunately, COVID hit us in March of 2020 and revenue streams were immediately seriously curtailed. The chart clearly highlights the impact on Baseline Revenue over the three-year period to the end of the 2021 financial year. The focus is on the major areas of operation affected by this revenue downturn and exclude the less significant parts of the club’s operations for the purposes of this comparison. One of the pleasing aspects of this comparison is Administration revenue which has improved during the three-year period and reflects the strong growth in new membership over that same period. Membership subscriptions totalled $1.77 million in 20/21 ($1.578 million in 19/20) and are accrued on a monthly basis over the budget year.

OPERATING EXPENSES An unfortunate reality of life is that costs keep rising and RCC expenses are no exception. However, the JobKeeper subsidies during the past two years, as shown in the chart have kept our expenses line below that of 2018/19. The impact on the major areas of operation has been $728,000 and $458,000 respectively for 19/20 and 20/21. The expenses comparison here is also limited to the major areas of operation. The highest and most important area of expenses ($1.460 million) is the cost of maintaining the courses and we have done our PAGE 7

best to keep the courses in a state of readiness and Ian Todd and his team have done an outstanding job with an absolute minimum of staffing. This could not have been achieved without the support of JobKeeper and staffing numbers for the courses must be addressed as soon as finances allow. The actual cost of course expenditure was below budget by 6.4%. Some of the Sandbelt courses have course expenditure budgets in excess of $2 million for 18 holes so we are doing extremely well in the circumstances. 5,000

Operating Expenses ($000) 4,821

4,000

4,371

4,372

3,000

2,000

1,000

Exp. 2018/19

Exp. 2019/20

Exp. 2020/21

PROFIT & LOSS Our first budget was prepared amidst much uncertainty and forecast a loss of $328,000. As circumstances changed it was quickly evident that many adjustments would be necessary without any guarantee of more accuracy. We decided to focus on both performance against budget, particularly for expenses and comparison to the previous year which had presented similar challenges.

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21 40,000 30,000

Net Profit 34,340

20,000 10,000 8,184

2018/19

2019/20

5,346

2020/21

Highlighted results for major business sectors below show the disparity caused by lockdown disruptions. Catering was 51.1% below the same period last year. Hospitality was 18% below the same period last year. Gaming was slightly ahead of last year due to adjustment of wage provisions. The challenge is to try to determine what is a realistic budget for Gaming (ignoring COVID) given the competing influences of online betting and other venues in the area. Golf operations was below last year by 6%. Administration was well ahead of budget principally due to new member growth of $259,780 compared to a budget forecast of $152,000 presenting a massive 70% increase. Course expenditure was 6.4% below budget but slightly ahead of the same period last year due to taking the opportunity to bring green renovations forward during lockdown which were scheduled for October in the 21/22 budget year.

BALANCE SHEET The balance sheet remains conservative in terms of valuations of assets and liabilities, but we continue without cash reserves and this is

something that simply must be addressed in the future. Last year we recognised that we had a structural cash deficiency on an ongoing basis which generally requires us to borrow towards the back end of our fiscal year and we need to address this going forward to build reserves for difficult times that may lay ahead. The events of the last 18 months have made this more evident than at any other stage. Current circumstances are difficult but the matter of cash reserves and operating without bank debt must be tabled for future Board’s to address. It can’t be addressed in a single year or in the short term.

BANK LOAN We were fortunate to only need minimal use of the bank loan during the course of fiscal 2021 but we needed to use approximately $500,000 of membership funds from 21/22 in order to meet our obligations during August, and this further highlights the structural cash deficiency in our current operations combined with the revenue reductions as previously outlined. It is pleasing to report that National Australia Bank has recently confirmed that they will extend our facility for a further two years. Given the difficulties that we face ahead it is almost certain that we will need to use the bank facility during the course of 21/22, and we will be monitoring cash flow forecasts on a monthly basis to predict forward borrowing and peak borrowing amount.

CAPITAL EXPENDITURE Capex in normal years is funded from our cash profit which is generated from operations before depreciation and amortisation.

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ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

Our accounts are produced under Generally Accepted Accounting Principles (GAAP) and while we recognise depreciation and amortisation as a not-for-profit entity, we have no general taxation liability. We have significantly curtailed capital expenditure during the course of the last difficult period and while some expenditure is necessary we will continue to monitor this very carefully to manage our resources during this continuing uncertain time.

2021/22 BUDGET Next year’s budget is again framed with much uncertainty, but we enter the new fiscal year with a slightly more optimistic view postlockdown. We are hopeful that by midNovember we will see operations return to something closer to normal. We still anticipate a revenue shortfall resulting from the lockdown we are currently experiencing but we are of the view that once things open, we will see a robust return to golf and hospitality operations at the club. Assuming we have no further lockdowns after

Course staff preparing the 18th hole on the Sunday of the TPS PAGE 9

we can reopen in accordance with the “Roadmap” we are forecasting a profit of approximately $60,000.

RISK MANAGEMENT Subsequent to reporting that the Risk Management Policy has been approved by the Board much work has been undertaken during the course of this year, despite constant restrictions, and many items of perceived risk have been identified and progressively mitigated and /or eliminated. Only a few remaining are considered urgent. We have established a management committee under Operations Manager Heath Whittaker, with the support of an external OH&S consultant to address operating procedures and accountability together with appropriate training that will be required. Unfortunately, this has been interrupted by the lockdown and some of those tasks remain works in progress. We believe that RCC currently has a better understanding of Risk Management as it pertains to our club than at any other time.

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

CONCLUSION We still have a difficult period ahead, but my fellow Board members and I are increasingly confident that the experience learnt from the past 18 months will stand us in good stead. We also remain optimistic that the prospect of opening up to normal operations is approaching. We will almost certainly still need to rely on some bank borrowing to get us through, but I remain positive that we will be able to manage the situation with the support of our Members. We continue to take a conservative approach to expenditure and do not expect anything more than minimal support from Government. However, with vaccination rates increasing and the apparent “Roadmap” to freedom being attained we need to look at things in a positive light. As I said at this time last year I still remain confident that our business model and staffing structures have us in good shape to deal with the future and once some freedoms are

returned I expect that we will see a very busy golf club with many more happy members. I would like to take this opportunity to thank Danny McGrath and his dedicated team for the support extended to me during the course of the past 12 months. I would also like to thank my fellow Board members for their untiring support and focus on the problems that we have had to address. And last, but not least, I would like to thank the members of the Finance and Risk Management committee for their contribution and professional guidance. They are Barry McGuinness, Geoff Irvine, Ray Allen, fellow board member Keith Dargavel and executive staff members Danny McGrath, Heath Whittaker, and Karen Harvey. Bruce Mathrick Treasurer

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ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

WOMEN'S GOLF REPORT Like 2020, this year has been a very difficult year. We started the year feeling very positive that we had turned the corner with COVID but unfortunately, we were unaware of what was ahead of us. Our membership numbers remained quite constant throughout the year being around the 300 mark which is consistent with the past few years. With the Player Series being held at the end of January we were unable to hold our traditional Morning Coffee Morning. However, we did hold our Betty Hebb Opening Day on 9 February. This was attended by 112 ladies and it being the first time we had been able to get together in nearly twelve months it was needless to say a great success. Also, in February we held our Open Day with 116 players attending with half our field coming from 16 visiting clubs. This again was a great success, but little did we know we would be back in lockdown the following day

Women's GPV Pennant team PAGE 11

Our Club Championships were held in April & May. Our numbers were down on previous years which was a little disappointing. Our Club Champions were Molly McLean in A Grade, Margot Spackman in B Grade, Rose Mary Grogan in C Grade and Kerry Elphinstone was our Senior Champion. Two out of the three weeks of the competition were played in appalling weather conditions and as a result there was no 9-hole champion as no one played the first round. Our Pennant team finished a very commendable second place. Unfortunately, Sorrento were too good for us in the final which was played at Flinders. Our Matchplay team were in with a slim chance of victory before the last round. However, the competition proved too tough and we finished a commendable third. Our major event for the year was our Golden Putter event, where we had 212 players

Women's Champion Molly McLean

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

competing with players from 32 visiting clubs. As the event was not held in 2020, we decided to support the same charity which was Southern Peninsula Community Support (SPCS) an organisation which supports disadvantaged people on the Peninsula. A cheque for $5,747 was presented to Jeremy Maxwell, CEO of SPCS. Vision 2025 is a Golf Australia initiative to ensure equal opportunity for all members. A working party, including members of the RCC Board, was established in the early part of 2021 to review the following aspects: Equal golfing access and participation opportunities for all genders Competition structure – e.g. holding the Club Championships simultaneously for men and women Improved representation for women in governance Unfortunately, due to COVID lockdowns this year our progress in reviewing the guidelines has been slow. Our thanks go to Danny McGrath and all members of staff in Administration, Golf Operations, Hospitality and of course Ian and his team in providing us with a fantastic golf course. With COVID it has been an extremely tough time treading in unknown waters.

Golden Putter luncheon

I would also like to thank our Women’s Committee of Kerry Elphinstone and Helen Palmer (Co-Captains), Julie McFarlane (VicePresident), Margie Brown (Vice-Captain), Val MacIntosh (Secretary), and Committee Members Nola Geary, Glenda Kelly, and Christa Maydom. Many thanks also to Coral Harris who kept us in touch with the 9-hole members. Sue Giles President Women's Golf

A common sight in 2020/21

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ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

BOWLS COMMITTEE OF MANAGEMENT REPORT As with all sections of the Rosebud Country Club, COVID-19 and all the lockdowns have impacted on the Bowls club quite severely. We were lucky that we managed to play a full season of pennant, with both midweek and Saturday having good results. Division 2 won their Grand Final and Division 3 were runners up in the Saturday competition. Our midweek restricted team made the Preliminary Final. Many thanks must go to the selectors, who found it hard going with people having trouble committing since COVID and lockdowns. Congratulations to our club champions this year; Quinton Dalrymple winning the Men’s title after a very close game and Julie Simpson winning the Women’s title. Julie went on to win the Mornington Peninsula Champion of Champions and played in the State finals in Bendigo, where she did very well. Unfortunately, Julie has left us, as she has moved down to Lake Tyers. Our AGM and Presentation Day was held at the club on the 28th April. Thank you to President Ross Heinrich and his wife Jan for attending both. We have a mix of experienced and new committee members this year, who really haven’t had much chance to shine, due to the ongoing lockdowns. Hopefully now that things seem to be moving in the right direction, we

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can get into our barefoot bowls and other ideas to entice new members to the club. The one event we managed to hold was our Good Friday special day, which was well attended and very successful. We had a lot of guests from other clubs in the area, which was pleasing to see. A very big thank you to Kevin Hutchison, who as usual ran a smooth and fun day. Winter bowls started off with a bang, with a good turnup of members and some from West Rosebud Bowls Club, around 20 to 30 bowlers on Thursdays and Saturdays. Then as we all know came the latest lockdown, so no more winter bowls. We are now back to roll ups only and strict restrictions. Everyone is saying how good the greens are looking and how great they are rolling. Thank you to all who kept the greens going during this time, Ian Todd, Peter Conboy and all the ground staff. I must also give thanks to CEO Danny McGrath and the entire team at the Club for getting us back on the bowling greens successfully. Hopefully now it will be smooth running and we see all our bowlers back enjoying themselves. A big shout out to all golfers, come down and enjoy bowls, you will love it. Marilyn Baker President Bowls Committee

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

DIRECTOR'S REPORT

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ROSEBUD COUNTRY CLUB

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

DIRECTOR'S REPORT

27th

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October

ROSEBUD COUNTRY CLUB ANNUAL REPORT 2020/21

AUDITOR'S INDEPENDENCE DECLARATION Under S 307C of the Corporations Act 2021 to the Directors of Rosebud Country Club

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Rosebud Country Club Financial Report

2020/2021