2016 Annual Report

Alberta Golf 2016 Annual Report

ALBERTA GOLF ASSOCIATION #22, 11410 27 STREET SE CALGARY ALBERTA T2Z 3R6 PHONE 403.236.4616 FAX 403.236.2915 TOLL FREE 1.888.414.4849 INFO@ALBERTAGOLF.ORG ALBERTAGOLF.ORG

Cover Photo Andrew Harrison at the Innisfail Golf Club during the 2016 Sun Life Financial Alberta Men’s Amateur Championship Inside Cover Photo Kat Kennedy (left) gave her competitor and friend Jaclyn Lee (right) a hard time during the 2016 Sun Life Financial Alberta Ladies Amateur Championship at the Highwood Golf & Country Club

STRATEGIC PLAN VISION 2018

VISION: Through golf, Albertans will enjoy a high quality of life, improved health and wellness, a strong sense of community, economic benefits and personal fulfillment

1234 MISSION: As the Provincial Sport Organization, we are committed to realizing the positive impacts of golf on individuals and communities across Alberta CORE VALUES: Purposeful, Inclusive, Respectful, Responsive

GROW PARTICIPATION 1.1 - Engage more youth in the sport of golf

ENSURE EXCELLENCE

EXPAND CAPACITY

FOSTER INTERACTION

2.1- Implement programming 3.1 - Develop sustainable funding 4.1 - Collaborate with all industry and fiscal responsiblity for high performance athletes partners and stakeholders

1.2 - Develop a connection with more golfers

2.2 - Develop coaches and certified officials

1.3 - Increase access for Albertans that are new to golf

2.3 - Host best in class provincial and national championships

8

3.2 - Enhance member services and sustain rules, handicapping, course rating, amateur status and the history of golf 3.3 - Provide opportunities for training and development of all volunteers and staff

4.2 - Strengthen capabilities in communication, marketing and technology 4.3 - Promote the societal benefits of golf

Key Performance Indicators

Last Revised: October 25, 2015

By the Numbers

Fees 49% mpionships 22% Connection 10% r Grants & Interest 2% grams & Services 5% 4% pment & Grassroots formance Results8%

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Financial Analysis

2016 Alberta Golf Directory BOARD OF DIRECTORS

STAFF (AS OF JUNE 1, 2016)

GOLF CANADA

PRESIDENT Bob McGinn, Sturgeon Valley

EXECUTIVE DIRECTOR/CEO Phil Berube

DIRECTORS AND GOVERNORS (FROM ALBERTA)

VICE PRESIDENT Tom Zariski, Dinosaur Trail

CHIEF OPERATING OFFICER Jack Lane

1ST VICE PRESIDENT Leslie Dunning

SECRETARY Tiffany Gordon, Cottonwood

MANAGER, HIGH PERFORMANCE SPORT Randy Robb

TREASURER Augie Annicchiarico, Highlands

MANAGER, RULES & COMPETITIONS Robert Forshner

GOVERNORS Fran Marsden Herb Schlotter

PAST PRESIDENT & PROVINCIAL COUNCIL REPRESENTATIVE Susan MacKinnon, Willow Park

MANAGER, YOUTH DEVELOPMENT Tyler McConachy

DIRECTORS AT LARGE Peter Major, Calgary Steven Johnson, Golf Canada Edmonton Lorraine Moster, Golf Canada Edmonton Bill McNaughton, Glencoe PRESIDENT - ALBERTA GOLF ASSOCIATION FOUNDATION Tom Zariski, Dinosaur Trail

MANAGER, COMMUNICATIONS & DIGITAL MEDIA Landon Jones

HONORARY LIFE GOVERNORS R. Bruce Bailey Thelma Coutts Wayne C. Petersen Karen Rackel, Q.C. Thomas P. Wood Harry Zuzak

MANAGER, MEMBER & PUBLIC RELATIONS Chloe Mansfield COORDINATOR, PROJECTS Angela Cooke COMPETITIONS INTERN Stephen Wigington COMMUNICATIONS INTERN Tyler Kemp DEVELOPMENT TEAM COACH Luke Workman DEVELOPMENT TEAM COACH John Deneer ACCOUNTING SERVICES Eric Rogers

Alberta Golf Board of Directors

2016 STANDING COMMITTEES

2016 OPERATING COMMITTEES

FINANCE, AUDIT & RISK MANAGEMENT Augie Annicchiarico – Chair Mark Bamford Peter Davies Leslie Dunning Bill McNaughton Phil Berube*

COMMUNICATIONS Jack Lane* Chloe Mansfield* Landon Jones*

GOVERNANCE Peter Major – Chair Steven Johnson Tiffany Gordon Lorraine Moster Phil Berube*

HUMAN RESOURCES & COMPENSATION Lorraine Moster – Chair Susan MacKinnon Bob McGinn Ken Knowles Phil Berube* NOMINATING Tom Zariski – Chair Steve Johnson Bob McGinn Phil Berube*

FUNDRAISING & SPONSORSHIP Bob McGinn – Chair Gary Bauer Kim Carrington Ken Knowles Dunc Mills Tiffany Gordon Bill McNaughton Jack Lane* Phil Berube* HALL OF FAME Enid Botchett – Chair Dunc Mills Fran Marsden Varley Weisman Jack Lane*

HANDICAP & COURSE RATING Herb Schlotter Howie Jaquish Chloe Mansfield* Jack Lane* MAGAZINE Dunc Mills Jack Lane* Chloe Mansfield* PLAYER SUPPORT Jim Richardson – Chair Chris Leach Tyler McConachy* Robert Forshner* Randy Robb* SPORT DEVELOPMENT John Deneer ** Luke Workman** Randy Robb** Tyler McConachy* Jack Lane*

VOLUNTEER ENGAGEMENT Tom Zariski – Chair Av Beirnes Lois Gilbertson Ray Rohr Les Swelin Anne Ward Neville Jack Lane* Chloe Mansfield* AGF SCHOLARSHIP Ted Thresher – Chair Bill Thomas Lyle Cuthbert Tyler McConachy* *Alberta Golf Staff **Team Alberta Coach

President’s Report IT HAS BEEN AN HONOUR TO SERVE AS ALBERTA GOLF’S PRESIDENT FOR 2016, AND IT GIVES ME GREAT PLEASURE TO SHARE THIS MESSAGE AND ANNUAL REPORT WITH YOU.

Financial, Guardian Capital and Scott Venturo LLP. The quality of the events, prizes and success in attracting quality competitors is made possible by them, and we thank them for their ongoing support and commitment.

Honour – a word at the heart of this game. A game that teaches our youngest players about personal responsibility, as demonstrated by the fact that even at a very young age, those players have enough personal responsibility to call penalties on themselves. A game that teaches all of us about respect for the golf course, where we fix a divot when we make one. A game where rules officials spend far more of their time helping to educate our younger tournament players, than they do administering penalties. It is words like “honour”, “respect” and “responsibility” that account for the greatness of this game, and the reason that we must all continue working to ensure its future growth. This is a mission that all of us at Alberta Golf are supporting in all of our programs, from the 46,000 children in 396 schools across Alberta that are participating in our Golf in Schools program, through the 550 young girls who participated in the first year of our new She Swings She Scores program, to our Senior Championships.

Also reporting to you in this Annual Report is the Alberta Golf Foundation, and we urge you to read their information. Alberta Golf is proud to support that Foundation, which in 2016 supported 35 young adults, golfers and nongolfers alike, with scholarships totaling more than $54,000, to help with their education.

In the following pages we present a summary of the past year’s activities, including youth development and high performance highlights, provincial champions, program information and the financial results for the fiscal year. You will notice that the financial highlights are now formatted in a way that delivers much more information about the many programs, and the investment that Alberta Golf and our Member Clubs are making in this amazing sport.

The Association’s financial results are highlighted in this report and are reviewed in detail in the Treasurer’s financial analysis and report. Alberta Golf recorded a surplus of $49,511 in 2016 before amortization, and given a number of unexpected issues this year, we were delighted with this result. A special thanks goes to our staff for managing this.

Bob McGinn President Alberta Golf MacKinnon, our Board has also played a significant role with Boards in other Provinces and with Golf Canada to work towards aligning our Strategic Plans, and ensuring that we are all working together to ensure the growth of our game across Canada.

The board and staff have spent countless hours working with Golf Canada on a new Membership Model, one that will facilitate growth in the membership of Alberta Golf and Golf Canada, and increase participation in this game that we all love. This new model, which has been in the trial stages over the past two years, is being rolled out in a much more significant way in Alberta for 2017, and we expect that it will encourage much more awareness of the many benefits of belonging to Alberta Golf, and encourage much more participation by those interested in Golf across this province.

Our Volunteers are the heart and soul of our organization. We have over 80 active volunteers with Alberta Golf, and 200 more at the club level helping with the many necessary functions to make our championships among the best in North America. Our Volunteers have donated well over 10,000 hours of combined time to help Alberta Golf grow this game, and without them, we would never be able to deliver the value and results to our Member Clubs and to the quality of our amateur tournaments that we do. Many casual readers of this Report will not know that without our Course Raters, we would not be able to have ratings for our courses, and the entire handicap system would not be possible.

Our competitive players know that our championships are the ‘Best in Class’, thanks to our Rules Officials, Tournament Officials and Starters and Scorers, who are quite often at the course an hour before the first competitive players tees off, and an hour after the last golfer has left – often putting in 14-hour days.

Our Committee and Board members put in countless hours dedicated to the success of our organization and the Mission and Vision outlined in this report. On behalf of the entire Board and all of our staff, a heartfelt “thank you” to each and every one of them.

Through our Provincial Council Representative, and Past President of Alberta Golf, Susan

Another critical part of our success is our Sponsors, led by our Title Sponsors, Sun Life

I want to start by saying a special thank you to our member clubs for your loyalty and confidence, and to so many of you for hosting our tournaments, and to our industry partners for your collaboration. This community of support contributes to everything that makes us all successful in growing this game.

This has been a busy and successful year for Alberta Golf. We lost our former Executive Director, Matt Rollins, to the Hawaii State Junior Golf Association in February, and while we miss him, we were very fortunate to find a superb replacement, Phil Berube, a past Executive Director of the PGA of Alberta.

In addition, we are pleased to unveil our new financial reporting to our readers. This new reporting provides much more detail, breaking out our revenues and expenditures into six separate schedules. As a result, Alberta Golf’s support for Sport Development (primarily youth development), Amateur Competitions, and Member Programs and Services becomes very clear.

And mostly, we thank our players, whether you play one Texas Scramble per year, or 150 games at your local club, and the parents, who are often out at the course before the Rules Officials, supporting your youngster as they warm up and prepare for the competition ahead – you are responsible for all of this! It is your support that is ultimately responsible for Alberta’s success on the national stage.

Alberta is proud of our junior boys and girls on Team Alberta, and especially proud of Alex Smith who made Team Canada’s Development Team and Jaclyn Lee who is a member of Canada’s National Team. Jaclyn won the 2016 Marlene Streit Award (low amateur) at the CP Women’s Open hosted on home soil at the beautiful Priddis Greens G&CC. On behalf of our very successful young golfers, thank you to all of the member clubs, and golfers across Alberta for your support.

Our success in growing this game, developing our youth, and helping all Albertans realize the positive impacts of Golf on individuals and our communities, is dependent upon our management and staff, led by our Executive Director, Phil Berube, and the parents, youth, volunteers, competitors and supporters alike.

Thank you all. And in closing, thank you to my fellow members of the Board of Directors for your outstanding efforts, expertise and support.

Sincerely,

Bob McGinn 2016 ANNUAL REPORT — 5

Mitch Fox tees off in pursuit of the 2016 Scott Venturo Alberta Open Championship at the RedTail Landing Golf Club

6 — ALBERTA GOLF

Executive Director/CEO’s Report IT’S ALL ABOUT COMMUNICATION. WHEN I JUMPED ON BOARD WITH ALBERTA GOLF EARLIER THIS SEASON I CAME IN WITH A VERY OPEN MIND TO LEARN AS MUCH AS I COULD ABOUT THIS HISTORIC ASSOCIATION WHILE MAKING A COMMITMENT TO LEAVE ALL LINES OF COMMUNICATION OPEN. I WANTED TO STRIKE UP A CONVERSATION WITH EVERY STAFF MEMBER, BOARD MEMBER, COMMITTEE MEMBER, SPONSOR AND SUPPORTER AND JUST TAKE IT ALL IN, BEFORE GETTING TO THAT PLACE WE ALL STRIVE TO GET TO IN TERMS OF ‘WHAT CAN WE DO TO MAKE THINGS BETTER?’ Overall 2016 has been a tremendous learning year.

The first question I asked our staff during our first planning session was the same question I have heard so many times throughout my career in the golf business: What is Alberta Golf? What does Alberta Golf do?

I may have put it a little differently that morning given the knowledge I had into the operation, but essentially the question was ‘Aside from course rating and handicapping, what else does Alberta Golf do for the golf industry?’

This is a question we have all heard many times over.

The answer surprised me. Alberta Golf has 125 different projects on the go every year.

The season started off with our Spring Training at the Cottonwood Golf & Country Club where over 40 staff and volunteers spent the better part of two days learning more about the operation and how to make things better for the 48,000 golfers we serve. During the training we were introduced to a handbook and manual that a committed and passionate group of volunteers from within the Association took upon themselves to craft and produce.

the impact being made was consistent, culminating with our Net Amateur Championship (which appealed to our largest demographic) and our Provincial Interclub (which showcased our province’s top golfers).

Both events helped to inform many of the concepts being explored this winter as Alberta Golf looks to expand our future membership offering in Sport Development.

The season winded up with our Volunteer Appreciation Day at the Edmonton Petroleum G&CC, yet another successful day for Alberta Golf. And it was everything in between that Alberta Golf does and does so well that impressed me the most this year, during my season of learning.

It is this, that I feel is the single most important thing to communicate in this annual report. It is the time and diligence being taken by our volunteers to prepare and execute on an event; spending time to evaluate our policies and our agreements; making sure our investments are being properly managed; contacting our media partners about upcoming competitions; communicating with clubs about the benefits of our high performance programs and overall instilling confidence with all stakeholders that Alberta Golf is there to support all aspects of the game in our province.

good for golf. As one of our volunteers put it so eloquently this summer, Alberta Golf is… good for golf.

Building on this as we head into our planning season we will try and keep things simple in 2017, lead by example and communicate clearly that our role should be to play more golf. We are going to support every existing industry effort to grow the game and we are going to play more golf. Did I already say we are going to play more golf? I asked our ninemember Board of Directors how many rounds of golf they played in 2016 and the combined answer was 255. Five more rounds each. One round per month from May to September. Let’s see if we can hit 300 in 2017.

What can we do to make things better at Alberta Golf? As difficult as it will be, the one thing we can do is Play More Golf. Let’s try it and see what that does for us.

I am really looking forward to what we will accomplish together in 2017 and would like to close by thanking each and every board and staff member for welcoming me to the team during my first year with Alberta Golf. This is already a very well run operation and I feel fortunate to have become part of it.

Sincerely,

So back to that question: what is Alberta Golf and what does Alberta Golf do?

What I have learned is that Alberta Golf does all the right things in all the right ways and does everything in the best interest of what’s

Phil Berube

For me this was the start of my own personal journey into exploring how deep these commitments were on behalf of our volunteer base. As it turns out Alberta Golf is fortunate to find itself in a very strong position when it comes to our volunteer network – a deep wealth of talented individuals.

These volunteers, whether they serve on boards, committees or at just one event have garnered interest in the game from thousands of individual supporters as well as many corporate partners and organizations like Alberta Sport Connection.

As the season marched on our championship team took over and I was able to watch our rules officials in action and see the expression of gratitude on the faces of competitors, parents and host club officials for what Alberta Golf does for the game. It was eye opening.

Throughout the year, course after course,

Evan Holmes shares a moment with the host club and local volunteers from the Innisfail Golf Club after claiming the 2016 Sun Life Financial Alberta Men’s Amateur Championship 2016 ANNUAL REPORT — 7

2016 Championship Results OPEN QUALIFYING SOUTH CARSTAIRS GC, CARSTAIRS, AB. JUNE 1, 2016

SENIOR QUALIFYING SOUTH - CALGARY ELKS GC, CALGARY, AB. JUNE 13, 2016

Matt Codd - Red Deer GCC (71)

Tim Hogan - Bearspaw (72)

OPEN QUALIFYING NORTH GOOSE HUMMOCK GR, GIBBONS, AB. JUNE 3, 2016

SENIOR QUALIFYING NORTH - LEDUC GCC, LEDUC, AB. JUNE 16, 2016

A.J. Armstrong - Windermere GCC (74) Jack Wesche - Country Hills GC (74) Phil McKenzie - Glendale GCC (74)

Christopher Hairrell - Alberta PPC (70)

JUNIOR QUALIFYING EDMONTON BROADMOOR GC, SHERWOOD PARK, AB. JUNE 5, 2016 Jacob Thomas - Edmonton CC (71) JUNIOR QUALIFYING SOUTH HENDERSON LAKE GC, AB. JUNE 5, 2016 Jace Ouellette - Innisfail GC (72) JUNIOR QUALIFYING CALGARY WOODSIDE GC, AIRDRIE, AB. JUNE 6, 2016 Matthew Tse - Country Hills GC (72) Brandon Maxwell - Alberta PPC (72) Jordan Bean - Canmore GCC (72) Cian Besler-Chalcroft - Bearspaw CC (72) JUNIOR QUALIFYING NORTH THE DUNES GWC, GRANDE PRAIRIE, AB. JUNE 6, 2016 Reid Svendsen - Grande Prairie GCC (76) AMATEUR QUALIFYING EDMONTON BARRHEAD GC, BARRHEAD, AB. JUNE 7, 2016 Ty Steinbring - Barrhead GC (71) Eric Sheard - Derrcik GWC (71) AMATEUR QUALIFYING CALGARY SILVERWING GC, CALGARY, AB. JUNE 8, 2016 Will Ni - Blue Devil GC (67) Ryan Smith - Calgary Elks GC (67) Matthew Campbell - Earl Grey GCC (67) AMATEUR QUALIFYING NORTH - GRAND PRAIRIE GCC, GRANDE PRAIRIE, AB. JUNE 8, 2016 Konrad Turcotte - Alberta PPC (73) Darren Kruse - Grande Prairie GCC (73) Jamie MacLeod - Grande Prairie GCC (73) AMATEUR QUALIFYING SOUTH THE BRIDGES AT CLARESHOLM GC, CLARESHOLM, AB. JUNE 9, 2016 Michael Valk - Medicine Hat GCC AMATEUR QUALIFYING CENTRAL OLDS GC, OLDS, AB. JUNE 9, 2016 Ryan Hounjet - Priddis Greens GCC (69) Brett Pasula - Red Deer GCC (69)

8 — ALBERTA GOLF

ALBERTA OPEN CHAMPIONSHIP REDTAIL LANDING GC, NISKU, AB. JUNE 21-22, 2016 Brett Hogan (Amateur) - Glencoe GCC (134 Low Amateur Brett Hogan - Glencoe GCC (134) ALBERTA MATCH PLAY CHAMPIONSHIP REDTAIL LANDING GC, NISKU, AB. JUNE 23-24, 2016 Jack Wood - Banff Springs GC (wins 19 holes) Runner up - Matt Williams - Glencoe GCC ALBERTA MEN’S MID-AMATEUR CHAMPIONSHIP - PONOKA GC, PONOKA, AB. JUNE 28-30, 2016 Jordan Irwin - Banff Springs GC (214) Mid Master Champion Paul Briske - Heritage Pointe GC (220) SUN LIFE FINANCIAL ALBERTA LADIES AMATEUR CHAMPIONSHIP HIGHWOOD GCC, HIGH RIVER, AB. JULY 5-7, 2016 Jaclyn Lee - Glencoe GCC (211) Mid- Amateur Champion Lauren Diederichs - Elbow Springs GC (226) Mid-Master Champion Kyla Larder - Edson GC (243) ALBERTA JUNIOR CHAMPIONSHIPS* COTTONWOOD GCC, DE WINTON, AB. JULY 12-14,15, 2016

GUARDIAN CAPITAL ALBERTA SENIOR MEN’S CHAMPIONSHIP STONY PLAIN GCC, STONY PLAIN, AB. JULY 26-28, 2016 David Schultz - Country Hills GC (214) Super Senior Champion - Howard Broun Earl Grey CC (223) GUARDIAN CAPITAL ALBERTA SENIOR LADIES CHAMPIONSHIP - OLDS GC, OLDS, AB. AUG 10-12, 2016 Lynn Kuehn - Lacombe GCC (221) Super Senior Champion Alison Murdoch - Victoria GC (232) GFTC LADIES TEAM CLASSIC WINTERGREEN GCC, BRAGG CREEK GC, AB. AUGUST 15-16, 2016 Sylvia Adams - Lakeside Greens GCC & Karoline Beninger - Alberta PPC (137) ALBERTA BANTAM CHAMPIONSHIP RIVER’S EDGE GC, OKOTOKS, AB. AUGUST 23-24, 2016 (Reduced to 18 hole Championship due to inclement weather) Boys Champion Ethan Choi - Pincher Creek GC (59) Girls Champion Annabelle Ackroyd - Silver Springs GCC (75) ALBERTA NET AMATEUR CHAMPIONSHIP DINOSAUR TRAIL GC, DRUMHELLER, AB. AUGUST 30-31 Mens Champion Mike Ross - Alberta PPC (72) Ladies Champion Betty Fisher - Stony Plain GC (73) Marg Ward Champion Sandy Tougas - Fort Saskatchewan GCC (70)

(Junior Boys reduced to 54 hole Championship due to inclement weather) Boys Champion Jaxon Lynn - Sylvan Lake GCC (207) Girls Champion Kenna Hughes - Willow Park GC (211) Boys Juvenile Champion Chandler McDowell - Red Deer GCC (215) Girls Juvenile Champion Taylor Stone - Pinebrook GCC (234) SUN LIFE FINANCIAL ALBERTA MEN’S AMATEUR CHAMPIONSHIP - INNISFAIL GC, INNISFAIL, AB. JULY 19-22, 2016 Evan Holmes - Glencoe GGC (273) Evan Holmes 2016 Alberta Men’s Amateur Champion

Jaclyn Lee 2016 Alberta Ladies Amateur Champion

2016 ANNUAL REPORT — 9

Young golfers making new friends at the 2016 Alberta Bantam Championship at the River’s Edge Golf Club

10 — ALBERTA GOLF

2016 Team Results 50TH PACIFIC COAST AMATEUR CHAMPIONSHIP - SEATTLE GC, SEATTLE, WA. JULY 26-29, 2016 Morse Cup Team Result - Stroke Play Tied Second Place Patrick Murphhy, Andrew Harrison, Brett Hogan (293) CANADIAN WOMEN’S AMATEUR CHAMPIONSHIP - KEN-WO CC, NEW MINAS, NS. JULY 26-29, 2016 Inter-Provincial Team Result - Stroke Play Fifth Palce Jaclyn Lee, Kat Kennedy, Quinn Fitzgerald (304) CANADIAN JUNIOR BOYS CHAMPIONSHIP CLOVELLY GC, ST. JOHN’S, NL. AUGUST 1-4, 2016 Inter-Provincial Team Result - Stroke Play First Place Chandler McDowell, Brendan MacDougall, Matt Bean (286) CANADIAN JUNIOR GIRLS CHAMPIONSHIP THE LINKS AT PENN HILLS GC, SHUBENACADIE, NS. AUGUST 2-5, 2016 Inter-Provincial Team Result - Stroke Play Sixth Place Kenna Hughes, Kehler Koss, Alicia Easthope (318) ALBERTA/MONTANA RYDER CUP WHITEFISH GC, WHITEFISH, MT. AUGUST 8-10, 2016 Team Result - Match Play - Boys Second Place; Girls First Place Boys - Jacob Thomas, Austin Noskiye, Cameron Duffin, Owen MacEachern, Cian Besler-Chalcroft, Jakob Chicoyne

CANADIAN MEN’S MID-AMATEUR CHAMPIONSHIP - GOLF CHATEAUBROMONT, BROMONT, QC. AUGUST 23-26, 2016 Inter-Provincial Team Result - Stroke Play Second Place Jordan Irwin, Gerry MacDonald, Paul Briske (143) CANADIAN WOMEN’S SENIOR CHAMPIONSHIP - WOLF CREEK GR, PONOKA, AB. AUGUST 24-26, 2016 Inter-Provincial Team Result - Stroke Play Fourth Place Lynn Kuehne, Cheryl Newman, Joan Wilson (312) CANADIAN MEN’S SENIOR CHAMPIONSHIP - GRAND NIAGARA GC, NIAGARA FALLS, ON. SEPTEMBER 6-9, 2016 Inter-Provincial Team Result - Stroke Play First Place David Schultz, Frank Van Dornick, Brian Brown (284) ALBERTA MEN’S INTERCLUB CHAMPIONSHIP - CANMORE GCC, CANMORE, AB. SEPTEMBER 8, 2016

(Left to right) Scott Secord, Evan Holmes, Matt Williams - 2016 Canadian Men’s Amateur Willingdon Cup Team

Earl Grey CC - Jimmy Cowan, Eric Allard, Peter Slade, Rhys Royer (202) Net Champion - Priddis Green GCC Bryan Shettler, Pat Deis, Ken Brown, Mike Lukawitski (211)

(Left to right) Taylor Stone, Kehler Koss, Kenna Hughes - The 2016 Canadian Junior Girls Inter-Provincial Team

Girls - Kehler Koss, Alicia Easthope, Taylor Stone, Reese Martin, Annabelle Ackroyd, MacKenzie Baustad CANADIAN MEN’S AMATEUR CHAMPIONSHIP - THE ROYAL OTTAWA GC, OTTAWA, ON - EAGLE CREEK GC, DUNROBIN, ON. AUGUST 8-11, 2016 Inter-Provincial Team Result - Stroke Play Tied Third Place Evan Holmes, Matt Williams, Scott Secord (284) GFTC LADIES TEAM CLASSIC WINTERGREEN GCC, BRAGG CREEK GC, AB. AUGUST 15-16, 2016 Sylvia Adams - Lakeside Greens GCC & Karoline Beninger - Alberta PPC (137)

2016 ANNUAL REPORT — 11

Team Alberta member Sharmaine Rapisura keeping her eye on a pitch shot during the 2016 Future Links Pacific Championship

12 — ALBERTA GOLF

Team Alberta Provincial Squad TEAM ALBERTA 2016 BOYS PROVINCIAL SQUAD

TEAM ALBERTA 2016 GIRLS PROVINCIAL SQUAD

Mas Sekulic - Grande Prairie GCC Best notable finish - 1st PGA of Alberta Junior Masters

Kehler Koss - Earl Grey CC Best notable finish - 1st CNFL Western Championship

Logan Carver - Calgary GCC Best notable finish - T7 Alberta Junior Championships

Annabelle Ackroyd - Silver Springs GCC Best notable finish - 1st Alberta Bantam Championship

Brendan MacDougall - Glencoe GCC Best notable finish - 1st CNFL Western Championship

Claire Emery - Glencoe GCC Best notable finish - 1st Canadian Junior Golf Association at Red Tail

Ethan Choi - Pincher Creek GC Best notable finish - 1st Alberta Bantam Championship

Sharmaine Rapisura - Canyon Meadows GCC Best notable finish - 1st Alberta High School Provincial Championship

Landon Stellingwerff - Glencoe GCC Best notable finish - 25th PGA of Alberta Junior Masters

Lauren Koenig - Connaught GCC Best notable finish - 1st Maple Leaf Junior Tour at Olds

Michael Lavorato - Canyon Meadows GCC Best notable finish - T5th CGA Junior Boys Championship

Cassidy Laidlaw - Bearspaw CC Best notable finish - 1st McLennan Ross Tour Championship

Chandler McDowell - Red Deer GCC Best notable finish - 1st Alberta Juvenile Boys Championship

Sydney Weber - Carstairs GC Best notable finish - 2nd Maple Leaf Junior Tour at River Bend

Chris Horton - Country Hills GC Best notable finish - 6th Alberta Junior Boys Championship

Jaden Baustad - Cottonwood GCC Best notable finish - 5th Alberta High School Provincial Championship

Max Murchison - Bearspaw CC Best notable finish - 1st Alberta High School Provincial Championship

PAST PRESIDENTS ALBERTA GOLF ASSOCIATION AND ALBERTA LADIES GOLF ASSOCIATION AGA 1912 Unknown 1913 Unknown 1914 Unknown 1915 Unknown 1916 Unknown 1917 Unknown 1918 Unknown 1919 Unknown 1920 Unknown 1921 Unknown 1922 Unknown 1923 Unknown 1924 Unknown 1925 Unknown 1926 Unknown 1927 Unknown 1928 Unknown 1929 Unknown 1930 Unknown 1931 Unknown 1932 Unknown 1933 Unknown 1934 Unknown 1935 A.W. Matthews 1936 A.W. Matthews 1937 B.V. Massie 1938 J. Ben Cool 1939 Unknown 1940 H.G. MacDonald 1941 R. Jennings 1942 Unknown 1943 Gordon Love 1944 J.B. Starkey 1945 A.J. Munro 1946 Robert Ainslie 1947 P.I. Cameron 1948 Bob Borland 1949 F.C. Smith 1950 Les Miller 1951 Joe Welsh 1952 Joe Welsh 1953 Gar Lush 1954 Les Delley 1955 Les Delley 1956 Harold McMahon 1957 Harold McMahon 1958 Charles Humber 1959 Charles Humber 1960 Dave Jones 1961 Dave Jones 1962 Ed Thomas 1963 Ed Thomas 1964 Bill Tait 1965 Bill Tait 1966 Al Williams 1967 Al Williams 1968 Glen Gray 1969 Dr. E.G. (Jim) Skinner 1970 Tom Wood 1971 Bruce Bailey 1972 Bruce Bailey 1973 Babe McAvoy 1974 Charlie Scott 1975 Pat Flanagan 1976 Ken Laubman 1977 Keith Alexander 1978 Suds Summerall 1979 Gerry Marshall 1980 Ken Sharratt 1981 Bill Ough 1982 John Higgin 1983 Gerry Marshall 1984 Fred Trumble 1985 Russ Powell 1986 Mike Seniuk 1987 Richard Beavers 1988 Frank McBride 1989 Frank McBride 1990 Bruce Cinnamon 1991 Bruce Cinnamon 1992 Wayne Petersen 1993 Wayne Petersen 1994 Ken Heywood 1995 Frank Crean 1996 Dave Bohlken 1997 Rick Wood 1998 Jack Brooks 1999 Gordon Groft 2000 Fran Marsden 2001 Bryan Nuebeker 2002 Bryan Nuebeker 2003 Karen Rackel 2004 Varley Weisman 2005 Enid Botchett 2006 Les Swelin 2007 Leslie Dunning 2008 Leslie Dunning 2009 Lonny Petersen 2010 Anne Ward Neville 2011 Tyrone Edwards 2012 Sandra Craig 2013 Sandra Craig 2014 Susan MacKinnon 2015 Susan MacKinnon 2016 Bob McGinn

ALGA

J.R. Henley (ALGA est.)

Mary Patrick J.A. McKinnon J.B. Starky C.R. Bunn Mrs. Roy H. Horne J. Train Grey Unknown Unknown Ethel Egbert Ethel Egbert Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknown Mrs. Victor Kastberg Catherine Rose H.C. Dalgleish Jean Wallbridge Mrs. John Michaels Louise Stempel A.C. Aherns Mrs. John Michaels S.D. McAra W.M. Hannah J.E. Walton Mina Lindberg Mrs. Glen Watson G.E. Lush Louise Stempel Mrs. John Kishiuchi Mrs. Robert Watson F. Walton Marg Ward Unknown G. Watson Unknown R.E. Stanhope R.E. Stanhope Blanche Williams Blanche Williams C.M. Campbell C.M. Campbell D.B. Grant D.B. Grant B. Hembling B. Hembling J.G. Peace J.G. Peace W.J. Siwak W.J. Siwak Lola Rozsa Lola Rozsa Thelma Coutts Thelma Coutts Catherine Simper Catherine Simper Jean Smeland Jean Smeland Pat Workun Pat Workun Penny Manson Penny Manson Corrine Wikjord Corrine Wikjord Fran Marsden Fran Marsden Fran Marsden (Amalgamation)

2016 ANNUAL REPORT — 13

200+ Host Club & Local Volunteers

396

48,780

$49,511 36+ hole facilities

181

Alberta Golf members

Scholarships totalling

Number of schools across Alberta actively participating in Golf In Schools

4

= 1000 members

$54,000

were awarded to the Alberta Golf Association Foundation

4,700

Association Surplus

18 hole facilities

127

9 hole facilities

CN Future Links mobile clinic participants

24

Courses Rated or Re-Rated

4,779 holes of golf in Alberta 14 — ALBERTA GOLF

17

Golf Fore The Cure program sites

10

th

550

2,810

Twitter Followers

Anniversary for the Girls Club program in Edmonton

Girls introduced to golf at 6 She Swings She Scores community events

1,800

1,092

Facebook Followers

843

Instagram Followers

Tournament Competitors

2

Team Canada high performance athletes from Alberta

9 BOYS 8 GIRLS on Team Alberta high performance program

4

Team Alberta athletes in the top 25 of the Golf Canada Order of Merit

3

22 Trained Community Golf Coaches National Junior Golf Development Centres

31 Edition of The Alberta Golfer Magazine st

2016 ANNUAL REPORT — 15

Financial Analysis IN 2016, ALBERTA GOLF ACHIEVED AN EXCESS OF REVENUE OVER EXPENSES OF $49,511 BEFORE AMORTIZATION. THE ONGOING COMMITMENT OF OUR BOARD AND STAFF IN ADHERING TO ALL ITEMS ADDRESSED IN OUR ANNUAL BUSINESS PLAN HAS ALLOWED US TO ACHIEVE THIS RESULT, WHILE DELIVERING A CONSISTENTLY HIGH LEVEL OF SERVICE AND VALUE TO OUR MEMBERSHIP WITH ALL PROGRAMS BEING OFFERED. Some key changes have been made to the format and schedules of our financial statements in order to provide a more accurate picture of our revenue and expenses within each area of our business. These changes will ensure all departments remain focused on controlling costs and meeting revenue targets.

We have completed a year of internal transition at Alberta Golf and have done so while remaining on track financially. Our personnel changes are visibly evident however our financial processes and procedures are not always as clear. Our significant achievement in terms of continuity and financial stability this past year demonstrates clearly that Alberta Golf possesses a very strong financial foundation as guided by our financial policies as supported by the ongoing commitment of the volunteers who comprise our finance and risk management committee.

During 2016, there are a few additional key achievements to make note of: • Unrestricted funds in net assets increased by $25,571 to $369,597.

• Endowment funds increased by $33,830 to $580,905.

• Working capital increased by $21,941 from $414,618 to $436,659.

2016 FINANCIAL RESULTS The sources of funding that allow Alberta Golf to deliver programs and provide member services are as follows: MEMBERSHIP FEES Alberta Golf relies heavily on membership fees to deliver amateur golf programs and also deliver on our role as the Provincial Sport Association for golf. Dues for the 2016 season were $26 ($14 to Alberta Golf) for every adult golfer and $20 ($12.50 to Alberta Golf) for every junior golfer. Through our working relationship with Golf Canada we have been able to improve communication and awareness of programs with the membership.

Improved messaging and communications will continue to strengthen relationships and provide a greater understanding of membership needs. Alberta Golf relies on member club support of key programs and services like CN Future Links, Golf in Schools, Golf Fore the Cure, and the Golf Canada Handicap System.

16 — ALBERTA GOLF

ALBERTA SPORT CONNECTION Alberta Golf is recognized by Alberta Sport Connection (ASC) as the Provincial Sport Association for golf, which provides the organization with an annual operating grant to support programs to carry out the mandate of a PSA. ASC provides financial and consultative services through the Association Development Program. Alberta Golf’s base funding from ASC was $85,257 in 2016, remaining consistent with 2015. Other grants from ASC include the Western Canada Summer Games, Canada Summer Games and the Sport Support Grant.

CASINO Alberta Golf is fortunate to have the opportunity to apply and secure a casino fundraiser on an 18-month cycle through the Alberta Gaming and Liquor Commission (AGLC). Funds raised through casinos can be used to offset expenses for a number of activities including but not limited to administrative costs, equipment purchases, promotional activities, rental facilities and in-province travel. Funds raised and not yet expensed can be held for future years’ expenses. A casino was held in 2015 with proceeds of $76,622. $64,627 was used within the designated expenses in 2015 and $15,108 was used in 2016.

GOLF CANADA Each year Golf Canada provides the Provincial Golf Associations with a number of opportunities to apply for grants that fund ‘grow the game’ initiatives. Alberta Golf takes advantage of these opportunities to offset expenses incurred while carrying out programs and services in the Province. The Women’s Fund grant covers the expenses for females who are trying to certify in the Rules of Golf and Course Rating seminars. The CN Future Links grant helps to offset the costs of carrying out mobile clinics in communities across Alberta. The Coaching grant offsets expenses for full and part time Coaching services. The Handicap & Course Rating grant offsets cost associated with conducting seminars and rating golf courses.

GRASSROOTS PROGRAMS Funding for grassroots programs like CN Future Links, Golf in Schools and Golf For the Cure comes from three sources – participation fees, national corporate sponsorships and individual donations.

HIGH PERFORMANCE (TEAM ALBERTA) Funding for Alberta Golf’s high performance sport program comes from two sources – participation fees and an investment by Alberta Golf into the program. This investment is vital to developing top talent in the game and ensuring a bright future for golf’s next generation of heroes. Program fees for the

athletes were modified to include a lower base fee for the program itself and then a user fee approach was added to subsidize the additional expenses incurred by each athlete for travel, meal and accommodation expenses incurred.

AMATEUR CHAMPIONSHIPS Funding for provincial amateur championships comes from three sources – player entry fees, our association contribution, as well as individual and/or corporate sponsorships.

Conducting championships has been core to Alberta Golf’s mandate since its formation in 1912. Player entry fees and golf course fees remained consistent with our 2015 levels to ensure active participation at all events and to continue supporting our member clubs with the production of best in class championships.

CONTRIBUTIONS In 2016, Alberta Golf supported charities and other golf related entities. Alberta Golf contributed $2,000 in 2016 toward initiatives conducted by the National Allied Golf Association on behalf of the Alberta golf industry. Alberta Golf also contributed $5 per player entry in the Alberta Ladies Team Classic event to the Canadian Cancer Society as part of the Golf Fore the Cure program.

On May 1, 2016, a wildfire began southwest of Fort McMurray. On May 3, it swept through the community, destroying approximately 2,400 homes and buildings and forcing the largest wildfire evacuation in Albertan history. The fire spread across approximately 1,500,000 acres before it was declared to be under control on July 5, 2016. Unfortunately, the Fort McMurray Golf Club facilities were either destroyed or suffered significant damage. Alberta Golf and Golf Canada returned the clubs membership dues totalling $9,600.

ASSETS, INVESTMENT INCOME AND ENDOWMENT FUNDS Golf House was purchased in 2007 and the build out completed in 2008. Computers and other office equipment are upgraded and maintained regularly to provide staff with the tools needed to provide quality services. The endowment funds are invested with CIBC Wood Gundy and Alberta Sport Connection and continue to generate investment income which is used to help fund Alberta Golf programs.

FINANCIAL OUTLOOK FOR 2017 AND BEYOND The fiscal focus of Alberta Golf is revealed in the financial mandate to develop sustainable funding as part of a commitment to achieve breakeven financial performance. A thorough breakdown of our finances was performed in 2016 in order to provide more accurate information relative to the investment being made into each program area. As we move

SOURCES OF FUNDS

USES OF FUNDS

Membership Fees 49% Amateur Championships 22% Alberta Sport Connection 10% Casino, Other Grants & Interest 2% Member Programs & Services 5% Sponsorship 4% Sport Development & Grassroots and High Performance 8%

Administration & Overhead 22% Amateur Championships 35% Member Programs & Services 13% Sport Development & Grassroots and High Performance 18% Communications & Business Development 12%

forward, this breakdown of scheduled revenues and expenses will provide the board and management with detailed information with which to make informed financial decisions.

Golf House is a mortgage free office and warehouse space in Calgary and continues to be a valuable asset both in the financial health of the organization and in the sustained operations of both staff and volunteers. It is also home to the Alberta Golf Hall of Fame located in the Lola Rozsa Board Room.

Fund development is a priority of Alberta Golf and a renewed focus on sponsorship and partner agreements should result in increased revenues and sustainable funding. The fund development committee was active this past year in developing a strategy for our future in order to better share our successes with potential donors and capitalize on the significant contributions being made to society

by Alberta Golf.

The Alberta Golf Board of Directors approved a $1 increase to both adult and junior membership dues for the 2017 season in order to sustain our existing programs and invest into membership services within the Province.

Alberta Golf is also committed to supporting the ongoing work in the area of membership with Golf Canada in providing more value for individual members and additional support for all member facilities.

Guided by the components of our strategic plan, we are forecasting that Alberta Golf can achieve the goal of breakeven for 2017 and beyond.

Sincerely,

Augie Annicchiarico, Treasurer

Phil Berube, Executive Director/CEO December 2016

2016 ANNUAL REPORT — 17

ALBERTA GOLF ASSOCIATION Financial Statements Year Ended September 30, 2016

18 — ALBERTA GOLF

INDEPENDENT AUDITOR'S REPORT

To the Members of Alberta Golf Association We have audited the accompanying financial statements of Alberta Golf Association, which comprise the statement of financial position as at September 30, 2016, and the statement of operations, cash flows and changes in net assets for the year ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Alberta Golf Association as at September 30, 2016 and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Calgary, Alberta November 29, 2016

CHARTERED PROFESSIONAL ACCOUNTANTS

2016 ANNUAL REPORT — 19

20 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 REVENUE Membership fees Less amounts paid to Golf Canada

$ 1,287,889 (556,412) 731,477

Program Revenue Grants – Alberta Sport Connection (note 9) Casino Investment income – endowment funds Sport development (Schedule 1) Competitions (Schedule 1) Member programs and services (Schedule 1)

Interest and other income TOTAL REVENUE

2015

$ 1,372,132 (599,387) 772,745

152,829 15,108 11,556 101,895 390,694 72,919 745,001

173,454 64,627 12,988 118,885 389,818 30,588 790,360

10,251 1,486,729

10,929 1,574,034

257,997 500,205 191,175 949,377

278,508 537,596 208,676 1,024,780

174,904 312,937 487,841 1,437,218

101,156 280,914 382,070 1,406,850

49,511 (53,633) 17,033

167,184 (53,640) (18,543)

EXPENSES Program Expense Sport development (Schedule 2) Competitions (Schedule 3) Member programs and services (Schedule 4) Program Support Expenses Communication and business development (Schedule 5) Administration (Schedule 6) TOTAL EXPENSES Operational excess of revenue over expenses Amortization (note 7) Unrealized gain (loss) on investments (note 5) EXCESS OF REVENUE OVER EXPENSES

$

12,911

$

95,001

See accompanying notes to the financial statements

2016 ANNUAL REPORT — 21

ALBERTA GOLF ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016

2015

CASH PROVIDED BY (USED FOR): OPERATING ACTIVITIES Excess of revenue over expenses Items not affecting cash: Amortization (note 7) Donation recognized (note 7) Unrealized loss (gains) on investments (note 5)

$

12,911

$

95,001

57,163 (3,530) (17,033) 49,511

56,709 (3,069) 18,543 167,184

107,407 (18,638) (15,108) 123,172

(137,163) 8,926 11,995 50,942

(20,611) 26,887 6,276

(14,755) (29,196) (43,951)

INCREASE IN CASH

129,448

6,991

CASH Beginning of year

535,442

528,451

Net change in non-cash working capital Changes in non-current liabilities Change in restricted cash

INVESTING ACTIVITIES Capital assets additions (note 4) Changes in marketable securities

End of year See accompanying notes to the financial statements

22 — ALBERTA GOLF

$

664,890

$

535,442

ALBERTA GOLF ASSOCIATION STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016

Balance, beginning of the year Excess of revenue over expenses Investment in capital assets Funds used in programs Unrealized (loss) gain on marketable securities Interest on endowment funds Net change in the year Balance, end of the year

Unrestricted Fund $ 344,026

$

2015

Capital Assets Endowment Fund Fund Total $ 853,768 $ 547,075 $ 1,744,869

Total $ 1,654,326

46,182 (20,611) -

(57,163) 20,611 -

23,892 -

12,911 -

95,001 -

25,571

(36,552)

7,165 2,773 33,830

7,165 2,773 22,849

(7,881) 3,423 90,543

369,597

$

817,216

$

580,905 $ 1,767,718

$ 1,744,869

See accompanying notes to the financial statements

2016 ANNUAL REPORT — 23

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

1. NATURE OF THE ASSOCIATION AND BASIS OF PRESENTATION The Alberta Golf Association (“Alberta Golf") is a not-for-profit association founded in 1912 and established under the Societies Act through an amalgamation with the Alberta Ladies Golf Association on January 1, 2000.

Recognized as the provincial sport organization by the Alberta Sport Connection (“ASC”), Alberta Golf is committed to realizing the positive impacts of golf on individuals and communities across Alberta.

As a not-for-profit organization, Alberta Golf does not pay income taxes. In order to maintain its status as a not-for-profit organization under the Income Tax Act (the “Act”), Alberta Golf must meet certain requirements within the Act. In the opinion of management, these requirements have been met.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations (“ASNFPO”) and reflect the following significant accounting policies. a) Revenue Recognition: Alberta Golf follows the deferral method of accounting for contributions, as follows: Membership fees are recognized as revenue proportionately over the fiscal year to which they relate. Membership fees received in advance of the membership year to which they relate are recorded as deferred revenue.

Unrestricted contributions are recognized as revenue when received or receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured.

Unrestricted investment income is recognized as revenue in operations when earned.

Restricted contributions, for which the related expenses have not yet been incurred, are deferred until the related expenses are incurred.

Unrestricted endowment fund income is recognized as revenue in operations when expended on programs and services.

Restricted endowment fund income is recognized as an increase to net assets.

Included in membership fees collected, are amounts collected on behalf of, and remitted, to Golf Canada. b) Capital assets: Capital assets are recorded at cost. Rates and bases of amortization applied to write off the cost of the capital assets over their estimated useful lives are as follows: Office premises Office and field equipment Computers and electronics

5% declining balance 20% declining balance 25% declining balance

c) Cash and cash equivalents: Alberta Golf considers all balances with banks and highly liquid investments with maturities of three months or less at the date of purchase to be cash and cash equivalents. d) Contributed materials and services: Volunteers contribute a substantial number of hours each year to assist Alberta Golf in fulfilling its mandate. The value of contributed services is not recognized in these financial statements. Contributed materials, the value of which can be reasonably estimated, are recorded in the financial statements at that estimated value.

24 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) e) Financial Instruments: Financial instruments are recorded at fair value on initial recognition. Equity instruments that are quoted in an active market are subsequently recorded at fair value. All other financial instruments are recorded at cost or amortized cost, unless management has elected to record at fair value. Alberta Golf has not elected to carry any such financial instruments at fair value.

With respect to financial assets measured at cost or amortized cost, Alberta Golf recognizes in the statement of operations, an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed in the statement of operations in the period the reversal occurs. f) Foreign currency transactions: Monetary assets (investments) of Alberta Golf which are denominated in foreign currencies are translated at year end exchange rates. Investment revenue and expenses are translated at the rates of exchange in effect at the respective transaction dates. The resulting foreign exchange gains and losses are recorded as income in the period realized for unrestricted assets and as an increase or decrease in funds for restricted assets. g) Use of accounting estimates: The preparation of financial statements in conformity with ASNFPO requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

Specific items subject to estimation include amortization of capital assets and provision for allowance for doubtful accounts.

These estimates are subject to measurement uncertainty and the effects of changes in these estimates in future periods could be significant.

3. DEFERRED CASINO REVENUE Pursuant to the requirements set out by the Alberta Gaming and Liquor Commission (“AGLC”), funds raised through casinos and not yet expensed have been designated as being held for future years’ expenses of the following types: (a) Administrative costs (maximum 10%) (b) Awards, trophies and plaques (c) Equipment purchase and repair for Junior programs (d) Promotional activities (e) Rental facilities for Junior tournaments and camps (f) In-province travel (g) Volunteer conferences, seminars and training Details of deferred revenue are as follows: Opening deferred casino revenue Casino proceeds Designated expenses Deferred casino revenue

$

$

2016 15,314 15,314 (15,108) 206

$

$

2015 3,319 76,622 79,941 (64,627) 15,314

2016 ANNUAL REPORT — 25

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

4. CAPITAL ASSETS Office Premises

2016

Office Equipment

Computers & Electronics

Field Equipment

Cost at beginning of year Additions Accumulated depreciation

$

1,167,180 4,208 (415,076)

$

204,957 1,518 (188,691)

$

50,122 14,885 (39,444)

$

103,402 (85,845)

Net book value at end of year

$

756,312

$

17,784

$

25,563

$

17,557

Office Premises

2015

Office Equipment

Computers & Electronics

Total $ 1,525,661 20,611 (729,056) $

Field Equipment

Cost at beginning of year Additions Accumulated depreciation

$

1,167,180 (375,270)

$

204,957 (184,246)

$

45,570 4,552 (30,922)

$

93,199 10,203 (81,455)

Net book value at end of year

$

791,910

$

20,711

$

19,200

$

21,947

817,216

Total $ 1,510,906 14,755 (671,893) $

853,768

The office premises are held as collateral for a line of credit from Canadian Western Bank (note 10).

5. FUND ACCOUNTING a) Capital Assets fund: Capital expenditures are allocated to Office Premises, Office Equipment, Computer and Electronics or Field Equipment. b) Endowment Funds: E. Lynne Cox Memorial Fund (original endowment of $20,000 contributed in 1995) Provides program funding for junior girls golf annually.

Arthur P. and E. Lynne Cox Memorial Fund (original endowment of $100,000 was accumulated from 1995 – 1997) Provides program funding for the Alberta Montana Junior Ryder Cup Teams.

General Endowment Funds Investment income from Alberta Golf General Endowment Funds is intended for Alberta Golf programs and services.

Title to investments with respect to the E. Lynne Cox Memorial Fund and the General Endowment Fund – is held, in perpetuity, by the ASC. Income on these investments may be paid to Alberta Golf on request, providing that the project description falls within the purpose for which the funds are maintained.

The marketable securities managed by CIBC Wood Gundy are recorded at cost and unrealized gains are recorded to reflect the fair market value of the securities. The carrying value of the marketable securities, managed by the ASC on behalf of Alberta Golf, approximates their fair market value.

26 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

5. FUND ACCOUNTING (continued) ENDOWMENT FUNDS 2015 Funds Held by ASC E. Lynne Cox Memorial Fund General Endowment Funds

$ 20,937 82,241 103,178

Funds Held by CIBC Wood Gundy Arthur P. & E. Lynne Cox Memorial General Endowment Funds Total Endowment Funds

$

131,432 312,465 443,897 $ 547,075

Used in Programs

Interest 171 672 843

$

-

2,602 6,187 8,789 $

9,632

Gain (loss) on Investments $

$

-

$

-

2016 $

21,108 82,913 104,021

7,165 17,033 24,198

141,199 335,685 476,884

24,198

$ 580,905

6. DEFERRED REVENUE Deferred revenue consists of: 2016 Deferred membership fees Deferred grant revenue - Alberta Sport Connection (note 9) Total

$ $

2015

46,502 20,611 67,113

$ 36,947 34,883 $ 71,830

7. DEFERRED DONATIONS In 2009, Alberta Golf received a donation of $100,000 from Lola Rozsa for the construction of its new office building. Recognition of this revenue will occur over the life of the building and is included in the calculation of depreciation of the building. Depreciation was calculated as follows:

Depreciation building Depreciation other assets

$

Deferred donation recognized Depreciation expense

2016 39,806 17,357 57,163 (3,530)

2015 41,679 15,030 56,709 (3,069)

$

$

53,633

$

53,640

Deferred donations, beginning of the year Donation recognized

$

2016 70,592 (3,530)

$

2015 73,661 (3,069)

Deferred donations, end of the year

$

67,062

$

70,592

The remaining amount of deferred donation was calculated as follows:

2016 ANNUAL REPORT — 27

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

8. COMMITMENTS Alberta Golf has existing lease agreements for two vehicles. The leases expire in 2018. Monthly lease payments under these agreements total $896. Payments may be reduced due to personal use of vehicles by employees.

Future operating lease payments are as follows: 2017 2018

$

10,750 4,948

Total

$

15,698

9. GRANT REVENUE During the year, Alberta Golf received grants totaling $138,557 (2015 - $184,463) from the ASC and $20,611 in grants was deferred to 2017. This is comprised of the following amounts: 2016 2015 Annual Association Funding $ 85,257 $ 84,513 International Sport Exchange Grant 66,500 Sport Support Grant 32,500 16,250 Western Canada Summer Games 1,800 7,200 Canada Summer Games 19,000 5,000 Donation Fund 5,000 138,557 184,463 Deferred Grant Revenue from prior year 34,883 23,874 Canada Summer Games deferred (note 6) (4,992) (5,000) Sport Support Grant deferred (note 6) (15,619) (16,250) International Sport Exchange Grant deferred (note 6) (13,633) Total

$

152,829

$

173,454

10. LINE OF CREDIT Alberta Golf has a $325,000 line of credit with the Canadian Western Bank. The line of credit bears interest at a rate that is the greater of prime plus 1.65% or 4.35%. As at September 30, 2016, the interest rate is 4.35%. It was undrawn as at September 30, 2016. The line of credit is subject to review at any time by the Bank. The next annual review is scheduled for completion by January 31, 2017. The line of credit is secured by a general security agreement over "all present and after acquired assets of Alberta Golf" and a first fixed charge of the office premises with a carrying value of $756,312.

11. RELATED PARTY TRANSACTIONS Alberta Golf’s related parties include directors and management. In addition, directors and management, or their related parties, may hold positions in other entities that result in them having significant influence over the strategic operating, financing and investing activities of these entities. The Alberta Golf Association Foundation (the “Foundation”) provides scholarships on an annual basis for all eligible Albertans. The Foundation president is an invited guest at all Alberta Golf board meetings.

All transactions with related parties were in the normal course of operations. Transactions between related parties are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties and which are similar to those negotiable with third parties.

Included in accounts payable and accrued liabilities is $235 payable to the Alberta Golf Association Foundation.

During the year, Alberta Golf purchased a leased vehicle for $27,776 and subsequently sold the vehicle for proceeds of $23,262 to a member of management. Incurred losses of $4,514 were offset by a reduction in commitments (note 8) of $9,789.

28 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

12. FINANCIAL RISK MANAGEMENT Alberta Golf is exposed to financial risks through its financial instruments.

Market Risk: Alberta Golf’s assets include significant amounts of marketable securities. These assets are externally managed. The value of marketable securities changes in concert with the business, financial condition, management and other relevant factors affecting the underlying organization that issued the securities. In addition, general economic conditions of the markets, in which such organizations operate, change, thereby exposing Alberta Golf to fluctuations in the value of investments. The fair market value of marketable securities at September 30, 2016 is $476,884 (2015 - $443,897). A sensitivity analysis shows that a change in 1% of equity prices will result in a $4,769 change in net assets.

Credit Risk: Alberta Golf is exposed to credit risk to the extent that club members may experience financial difficulty and would be unable to meet their obligations. Alberta Golf has a large number of club members, which minimizes the concentration of credit risk.

Interest rate risk: Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows associated with the instruments will fluctuate due to changes in interest rates. The exposure of Alberta Golf to interest rate risk arises from its interest bearing assets.

Alberta Golf manages its exposure to interest rate risk on its cash and cash equivalents and short term investments by maximizing interest income earned on excess funds while maintaining the liquidity to conduct operations on a day to day basis. Fluctuations of market rates of interest on cash and cash equivalents and short-term investments do not have a significant impact on Alberta Golf’s results of operations.

The objective of Alberta Golf with respect to fixed income investments is to ensure the security of principal amounts invested, provide a high degree of liquidity, and achieve a satisfactory investment return.

Alberta Golf manages the interest rate risk exposure on its fixed income investments by using a laddered portfolio with varying terms to maturity and minimizing the average term to maturity.

Currency risk: Currency risk refers to the risk that the fair value of financial instruments or future cash flows associated with the instruments will fluctuate relative to the Canadian dollar due to changes in foreign exchange rates.

The functional currency of Alberta Golf is the Canadian dollar. Alberta Golf infrequently transacts in U.S. and foreign currencies.

Alberta Golf invests a portion of its investment portfolio in foreign equities. Alberta Golf mitigates its currency risk exposure by placing limits on the proportion of portfolio investments in foreign currencies.

Liquidity Risk: Liquidity risk is the risk that Alberta Golf will not be able to meet a demand for cash or fund its obligations as they become due.

Alberta Golf meets its liquidity requirements by monitoring cash flows from operations and anticipating investing and financing activities. Alberta Golf has a short term secured bank facility of up to $325,000. At September 30, 2016 and 2015, the bank facility had not been drawn upon.

13. COMPARATIVE FIGURES The comparative figures have been reclassified, where necessary, for consistency with current year disclosure.

2016 ANNUAL REPORT — 29

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

SCHEDULE OF PROGRAM REVENUE FOR THE YEAR ENDED SEPTEMBER 30, 2016 SCHEDULE 1 2016 Sport Development Entry fees and registrations Sponsorships Grants and other Total

Competitions

$

69,342 32,553 $ 101,895

Member Programs and Services

$ 309,709 62,633 18,352 $ 390,694

$

546 72,373 $ 72,919

Total

$ 379,597 62,633 123,278 $ 565,508

2015 Sport Development Entry fees and registrations Sponsorships Grants and other Total

$

89,919 28,966 $ 118,885

Competitions

Member Programs and Services

$ 323,961 55,000 10,857 $ 389,818

$

14,500 16,088 $ 30,588

Total

$ 413,880 69,500 55,911 $ 539,291

SCHEDULE OF SPORT DEVELOPMENT EXPENSES SCHEDULE 2

Salaries and benefits Contract fees Travel Facility and equipment fees Clothing Food and beverage Registrations Grants and donations Team member recognition award Total

30 — ALBERTA GOLF

2016 69,360 68,230 47,979 29,201 13,852 11,605 9,113 6,290 2,367 $ 257,997

$

2015 86,757 86,737 40,374 24,169 17,460 12,162 8,219 780 1,850 $ 278,508

$

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

SCHEDULE OF COMPETITIONS EXPENSES SCHEDULE 3

Facility and equipment fees Salaries and benefits Food and beverage Competitor participation awards Travel Competitor performance awards Contract fees Signs and banners Office and courier Clothing Media day Grants and other Total

2016 $ 119,477 104,375 77,302 56,143 46,945 32,698 16,983 15,304 13,330 8,492 8,347 809 $ 500,205

2015 $ 124,143 112,693 90,675 43,259 45,552 51,846 15,029 19,841 16,065 11,632 2,940 3,921 $ 537,596

SCHEDULE OF MEMBER PROGRAMS AND SERVICES EXPENSES SCHEDULE 4

Salaries and benefits Contract fees Travel Printing, postage & telephone Clothing Food and beverage Facility and equipment Grants & other Miscellaneous members services Total

2016 $ 48,474 38,898 28,068 27,734 17,856 14,510 6,737 6,273 2,625 $ 191,175

2015 $ 49,875 14,236 52,821 7,759 19,267 27,317 8,000 10,440 18,961 $ 208,676

2016 ANNUAL REPORT — 31

ALBERTA GOLF ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

SCHEDULE OF COMMUNICATIONS AND BUSINESS DEVELOPMENT EXPENSES SCHEDULE 5

Salaries and benefits Travel Registrations Food and beverage Printing, postage & telephone Contract fees Facility fee Miscellaneous members services Total

2016 $ 94,907 27,245 23,935 13,572 8,289 4,400 1,670 886 $ 174,904

2015 $ 30,743 25,437 10,627 15,374 2,726 13,326 1,739 1,184 $ 101,156

SCHEDULE OF ADMINISTRATION AND OVERHEAD EXPENSES SCHEDULE 6

Salaries and benefits Contract services Legal and audit Insurance Telephone Building maintenance and repairs Property taxes Information technology Travel Office supplies and printing Delivery costs Utilities Management fees Loss on termination of lease (note 11) Bad debts Total

32 — ALBERTA GOLF

2016 $ 125,962 42,000 25,000 19,184 15,791 14,781 14,275 12,134 10,671 9,289 7,482 5,665 4,696 4,514 1,493 $ 312,937

2015 $ 74,735 60,000 25,302 20,789 14,430 16,892 10,238 8,701 7,304 20,168 3,406 6,024 4,714 8,211 $ 280,914

Competitors in the 2016 Sun Life Financial Alberta Men’s Amateur Championship were met with nearly perfect conditions at the spectacular Innisfail Golf Club

2016 ANNUAL REPORT — 33

Foundation President’s Report

What an incredible organization! When we are asked to donate to any noble cause, charity, or non-profit we always ask “what are the administration fees”. Sadly we have seen some non-reputable organizations spend inordinate amounts of their donations paying themselves first and the cause second. I am proud to say the AGAF spends very little of its funds on administration and related costs and the vast majority on its main goal of scholarships. The primary reason for this is of course the many dedicated volunteers who take time out of their busy lives to help the Foundation by serving on the Board of Directors, so thank you to Ted Thresher the past president, Susan MacKinnon, secretary, Neil Little, treasurer, Lyle Cuthbert, Bill Thomas, Tyrone Edwards, Mike Gendron and Dunc Mills. A special thank you also to the Executive Director of AGAF Phil Berube and his staff for all of the work he and they do on behalf of the Foundation.

Also I would like to thank those who assisted in the Casino Fundraiser, the Scholarship Committee, the Foundation Members and the Patrons for their contributions to ensure another successful year for post-secondary scholarships and research in Alberta.

34 — ALBERTA GOLF

Alissa Kuhn - University of Lethbridge Allan Pruss - University of Jamestown Amanda Sha - University of Alberta

THE ALBERTA GOLF ASSOCIATION FOUNDATION, ESTABLISHED UNDER THE ALBERTA SOCIETIES ACT IN 1994, CONTINUES TO GROW FOR THE BENEFIT OF ALL ALBERTA STUDENTS GRADUATING AND GOING ON TO POST SECONDARY STUDIES AND THE NEXT GENERATION OF GOLFERS THROUGH POST SECONDARY SCHOLARSHIP FUNDING AND RESEARCH ACTIVITIES. In 2013, the Foundation adjusted its Bylaws to enable the start of a more supportive membership base. Eligibility is open to the general public, to male and female Alberta residents of all ethnic and cultural backgrounds, is representative of the larger community and not dependent on an individual’s relationship with any particular sport or individual. Membership is voluntary with names and contract information held within a central registry. There are no membership fees but a donation to the Foundation is suggested for each member.

On behalf of the Foundation in 2016, the Scholarship Committee was fortunate to award 43 Scholarships totaling $54,000. These funds were acquired from our many patrons and half of our 2014 Casino fundraising initiative. The Casino funds are distributed over two years to ensure an equal allocation to the scholarship and research programs.

2016 SCHOLARSHIP RECIPIENTS

Andrew Chelack - Univeristy of Calgary Andrew Harrison - University of British Columbia Barrett Belland - MacEwan University Brandon Murphy - Univeristy of Calgary Brendan Kuny - University of Alberta Bria Jansen - Troy University Carolyn Lee - University of British Columbia Celine Copeland - Mount Royal University Claire Emery - University of British Columbia Conaire Kehoe - University of British Columbia Courtney Dickson - University of Lethbridge Dalton Ronan - University of Alberta Daria Leidenius - Holland College Elliot Saive - University of Alberta Erin Martens - Sonoma State University Hamzah Naeem - Univeristy of Calgary

Tom Zariski President Alberta Golf Foundation

Heather Gisi - University of Lethbridge Jack Pengelly - University of Calgary Jack Wood - University of British Columbia Jolene Freerksen - Southern Wesleyan University Julie Kuhn - University of Alberta

THANK YOU TO OUR PATRONS: Charles C. Reid Foundation

Kat Kennedy - University of British Columbia

Frank Lindsay Memorial Foundation

Katie Benoit - University of Lethbridge

McLennan Ross Junior Golf Tour presented by Crowe McKay

Kevin Gfrerer - Golf Academy of America San Diego

R.E. Courage Memorial Fund

Lindsay Almberg - University of Alberta

Christa Spahmann Memorial

Luke Scanlon - Mount Royal University

Lola Rozsa

Mackenzie Walker - University of British Columbia

Jeff Llewellyn Memorial Fund

Melanie Murchison - University of Victoria

Sun Life Financial

Michael Pruss - University of Jamestown

Bob Rintoul Memorial Fund

Nathan Nobert - University of Alberta Augustana Campus

Kate Martens - University of Victoria

Patrick Gobran - Longwood University Peter Keith - University of Alberta Quinn Ceplis - University of Calgary Rachel Wiebe - MacEwan University Scott McNichol - University of Calgary Shaye Leidenius - Red Deer College Sydney Weber - University of British Columbia Tyler Saunders - University of Nevada - Reno Tyler Vandermeer - University of Alberta

ALBERTA GOLF ASSOCIATION FOUNDATION Financial Statements Year Ended September 30, 2016

2016 ANNUAL REPORT — 35

INDEPENDENT AUDITOR'S REPORT To the Members of Alberta Golf Association Foundation We have audited the accompanying financial statements of Alberta Golf Association Foundation, which comprise the statement of financial position as at September 30, 2016, and the statements of operations, cash flows and changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian Auditing Standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Alberta Golf Association Foundation as at September 30, 2016 and its operations and its cash flows for the year then ended in accordance with Canadian Accounting Standards for not- for- profit organizations.

Calgary, Alberta November 29, 2016

36 — ALBERTA GOLF

CHARTERED PROFESSIONAL ACCOUNTANTS

1

2016 ANNUAL REPORT — 37

ALBERTA GOLF ASSOCIATION FOUNDATION STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 REVENUE Casino revenue (note 5) Scholarships – not tax receipted General – not tax receipted General – tax receipted Scholarships – tax receipted Membership fees

$

EXPENSES Scholarships and bursaries General and administrative Casino expense

EXCESS OF REVENUE OVER EXPENSES See accompanying notes to the financial statements

38 — ALBERTA GOLF

36,933 11,193 5,393 2,035 2,000 57,554

2015 $

48,000 6,073 933 55,006 $

2,548

45,448 9,708 6,000 6,490 4,000 510 72,156 56,500 5,133 6,449 68,082

$

4,074

ALBERTA GOLF ASSOCIATION FOUNDATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED SEPTEMBER 30, 2016 2016 OPERATING ACTIVITIES Excess of revenue over expenses

$

Changes in non-cash working capital: Changes in accounts receivable and accounts payable Changes in non-current deferred casino revenue Changes in restricted cash Endowment scholarships paid

Cash flow used by operating activities INVESTING ACTIVITY Changes in investments INCREASE (DECREASE) IN CASH FLOW CASH Beginning of year End of year

$

2015

2,548

$

4,074

(2,274) (36,182) 39,527 (6,000)

28 41,950 (45,795) -

(4,929) (2,381)

(3,817) 257

-

3,900

(2,381)

4,157

7,037

2,880

4,656

$

7,037

See accompanying notes to the financial statements

2016 ANNUAL REPORT — 39

ALBERTA GOLF ASSOCIATION FOUNDATION STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED SEPTEMBER 30, 2016

Net assets – beginning of year Donations Membership fees Interfund transfer Investment income Scholarships Disbursements Gain and management fees Net assets – end of year

Unrestricted Fund $ 3,550 9,433 (67) (7,010)

$

5,906

See accompanying notes to the financial statements

40 — ALBERTA GOLF

$

$

2016 Restricted Endowment Fund Fund Total 30 $ 276,801 $ 280,381 48,126 57,559 67 9,220 9,220 (48,000) (6,000) (54,000) (7,010) 225 225 223

$

280,246

$ 286,375

2015 Total $ 270,296 76,549 510 9,830 (65,500) (11,585) 281 $ 280,381

ALBERTA GOLF ASSOCIATION FOUNDATION STATEMENT OF CHANGES IN UNRESTRICTED NET ASSETS YEAR ENDED SEPTEMBER 30, 2016 2016 Unrestricted donations and membership fees Transfer from restricted fund General expenses

$

9,433 (67) (7,010) 2,356 3,550

$

13,003 3,856 (11,585) 5,274 (1,724)

$

5,906

$

3,550

Unrestricted funds, beginning of year Unrestricted funds, end of year

2015

STATEMENT OF CHANGES IN RESTRICTED FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Balance Beginning of Year Scholarships and grants: Casino scholarships Charles C. Reid McLennan Ross Sun Life Financial Mike Bower Scholarship Funds: Turf Project

$

Donations and Interfund Transfers

(826) $ (139) 183 812

Total restricted scholarships and funds $

30

36,000 9,193 2,000 1,000 -

Scholarships Investment and Income Disbursements $

$

48,193

$

- $ (36,000) (9,000) (2,000) (1,000) -

-

-

$ (48,000)

Balance End of Year $

(826) 54 183 812

$

223

STATEMENT OF CHANGES IN RESTRICTED FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Balance Beginning of Year Scholarships and grants: Casino scholarships Charles C. Reid McLennan Ross Sun Life Financial Roger Gilett Mike Bower Scholarship Funds: Turf Project

$

Total restricted scholarships and funds $

Donations and Interfund Transfers

(826) $ 61 183 1,812 1,230

40,000 9,800 4,000 1,000 500 -

Scholarships Investment and Income Disbursements $

$

55,300

$

- $ (40,000) (10,000) (4,000) (1,000) (500) -

(1,000)

-

$ (56,500)

Balance End of Year $

(826) (139) 183 812

$

30

See accompanying notes to the financial statements

2016 ANNUAL REPORT — 41

ALBERTA GOLF ASSOCIATION FOUNDATION STATEMENT OF CHANGES IN ENDOWMENT FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016

Lola Rozsa Jeff Llewellyn Bob Rintoul Christa Spahmann Frank Lindsay R.E. Courage

$

Total endowment funds $

Balance Beginning of Year 55,598 54,774 51,020 47,001 41,644 26,764

Donations and Interfund Investment Transfers Income $ $ 1,852 1,824 1,699 1,566 1,387 892

276,801

$

-

$

9,220

Scholarships Gain and Balance and Management End Disbursements fees of Year $ (1,500) $ 45 $ 55,995 (1,000) 45 55,643 (1,000) 41 51,760 (1,000) 38 47,605 (1,000) 34 42,065 (500) 22 27,178 $

(6,000)

$

225

$ 280,246

STATEMENT OF CHANGES IN ENDOWMENT FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2015

Lola Rozsa Jeff Llewellyn Bob Rintoul Christa Spahmann Frank Lindsay R.E. Courage

$

Total endowment funds $

Balance Beginning of Year 55,524 53,766 50,148 43,478 41,110 26,764

Donations and Interfund Investment Transfers Income $ $ 2,016 1,000 1,952 1,820 3,900 1,578 1,492 972

270,790

$

See accompanying notes to the financial statements

42 — ALBERTA GOLF

4,900

$

9,830

Scholarships Gain and Balance and Management End Disbursements fees of Year $ (2,000) $ 58 $ 55,598 (2,000) 56 54,774 (1,000) 52 51,020 (2,000) 45 47,001 (1,000) 42 41,644 (1,000) 28 26,764 $

(9,000)

$

281

$ 276,801

ALBERTA GOLF ASSOCIATION FOUNDATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 1. NATURE OF THE BUSINESS AND BASIS OF PRESENTATION The Alberta Golf Association Foundation (“the Foundation”) is a not-for-profit association organized to provide scholarships to Albertans for post-secondary education and fund research projects relating to golf and golf facilities.

The Foundation was established under the Societies Act on February 10, 1994 with active operations commencing October 1, 1995.

As the Foundation is registered as a charitable organization authorized to issue donation receipts for income tax purposes under the Income Tax Act (“the Act”), the Foundation does not pay taxes on its net revenue. In order to maintain its status as a charitable organization under the Act, the Foundation must meet certain requirements within the Act. In the opinion of management, these requirements have been met.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES These financial statements are prepared in accordance with Canadian accounting standards for not-for-profit organizations (“ASNFPO”) and reflect the following significant accounting policies. a) Revenue Recognition The Foundation follows the deferral method of accounting for contributions, as follows: Unrestricted contributions are recognized as revenue when received or receivable, if the amount to be received can be reasonably estimated and collection is reasonably assured.

Restricted contributions are recognized when the externally imposed restrictions are fulfilled.

Endowment contributions are recognized as a direct increase in net assets when received. b) Cash Cash includes unrestricted cash on deposit. c) Contributed services Volunteers contribute a substantial number of hours each year to assist the Foundation in fulfilling its mandate.

Because of the difficulty of determining their fair value, contributed services are not recognized in the financial statements. d) Financial Instruments Financial instruments are recorded at fair value on initial recognition. Equity instruments that are quoted in an active market are subsequently recorded at fair value. All other financial instruments are subsequently recorded at amortized cost, unless management has elected to record at fair value. The Foundation has not elected to carry any such financial instruments at fair value.

With respect to financial assets measured at cost or amortized cost, the Foundation recognizes in the statement of operations an impairment loss, if any, when it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed in the statement of operations in the period the reversal occurs. e) Use of accounting estimates The preparation of financial statements in conformity with ASNFPO requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.

2016 ANNUAL REPORT — 43

ALBERTA GOLF ASSOCIATION FOUNDATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) e) Use of accounting estimates (continued) Specific items subject to estimation include potential impairment of investments.

These estimates are subject to measurement uncertainty and the effects of changes in these estimates in future periods could be significant.

3. INVESTMENTS Cash Fixed income investments Total

$ $

2016 17,469 264,874 282,343

$ $

2015 11,254 261,643 272,897

Fixed income investments are invested in government and corporate bonds and entirely denominated in Canadian dollars.

4. RESTRICTED SCHOLARSHIP FUNDS AND GRANTS The restricted net assets are represented by the following assets: Cash Investments Total

$ $

2016 280,469 280,469

$ $

2015 3,934 272,897 276,831

All restricted net assets are subject to externally imposed restrictions. These external restrictions stipulate that the funds be used as follows: a) Bob Rintoul Scholarship In 2012, Calgary entrepreneur and philanthropist, Mr. Bob Rintoul provided a $50,000 endowment to the Foundation to provide a lasting scholarship legacy. Investment income from the endowment fund is utilized to provide post-secondary scholarships each year to southern Alberta area students. In 2016, a $1,000 scholarship was awarded. b) Charles C. Reid Memorial Foundation Scholarship In 2016, scholarships totaling $9,000 were awarded to students pursuing post-secondary degrees. This program is funded by the Estate of Charles C. Reid, formerly an enthusiastic patron of golf from Banff. c) Christa Spahmann Memorial Scholarship Christa was fun loving, hardworking and an extremely good athlete. She was liked by all around and always had a smile on her face. The recipient of the Christa Spahmann Memorial Scholarship will display these qualities and preference will be given to a southern Alberta female pursuing a post-secondary education. Funds for this scholarship are raised through the Christa Spahmann Memorial Tournament and contributed to the Foundation on an annual basis. In 2016, a $1,000 scholarship was awarded.

44 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION FOUNDATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 4. RESTRICTED SCHOLARSHIP FUNDS AND GRANTS (continued) d) Frank Lindsay Foundation Grant In 2008, an agreement was made with the Frank Lindsay Foundation to contribute an annual grant to sponsor the Alberta Bantam Championship. Subsequent to the signing of this agreement a Canada Revenue Agency challenge resulted in the funds being built into a scholarship endowment fund. In 2016, a $1,000 scholarship was awarded. e) Jeff Llewellyn Scholarship In 2013, the Foundation received a generous endowment of $51,800 to honor the memory of Jeff Llewellyn. The endowment was setup through his employer, MNP LLP. Jeff Llewellyn was an avid golfer who was dedicated to mentoring youth. In his memory, the Foundation will award a minimum $1,000 scholarship annually, from the investment income of the endowment, to students pursuing a post-secondary education in the area of Sports Administration with an emphasis on those pursuing Bachelor of Commerce, Economics, or Business Management degrees. In 2016, a $1,000 scholarship was awarded. f) Lola Rozsa Memorial Golf Scholarship & Bursary (original Endowment of $50,000 contributed in 1999) Affectionately nicknamed the “Grandmother of Calgary Golf” by local media, Lola dedicated herself to the promotion of the game, serving on the Calgary, Alberta and Canadian ladies golf associations. In 1999, Lola Rozsa donated a $50,000 endowment to the Foundation to establish an annual post-secondary scholarship and bursary award program as a perennial gift to the game she loved. Investment income from the endowment fund provides annual post-secondary scholarships. In 2016, two $750 scholarships were awarded. g) McLennan Ross Sun Junior Golf Tour Scholarship In 2016, two scholarships of $1,000 were awarded to students who have participated in the McLennan Ross Sun Junior Golf Tour and are now pursuing post-secondary degrees. Program funding is provided by the law firm, McLennan Ross, the title sponsor of this Junior Tour. h) Mike Bower Memorial Scholarship Mike Bower started playing the game of golf at age 11 and by the conclusion of his junior career would capture two consecutive Alberta Junior Championships. Donations to the fund are accepted from family and friends annually. i) R.E. Courage Memorial Scholarship The family of R.E. “Dick” Courage created a scholarship endowment to honour the legacy of a sportsman that contributed greatly to his community. Funds for the endowment were raised by family and friends through the staging of annual golf tournaments. Investment income from the endowment fund provides annual post-secondary scholarships. In 2016, a $500 scholarship was awarded. j) Sun Life Financial Scholarship Sun Life Financial is a long time sponsor of the Alberta Men’s and Women’s Amateur Golf Championships. This annual $1,000 scholarship is awarded to an Alberta resident pursuing a post-secondary education.

In 2008, Sun Life Financial who is the title sponsor of the Alberta Men’s and Women’s Amateur Golf Championship and the Alberta Golf Association decided to offer an annual $1,000 scholarship from proceeds of the championships. This scholarship was issued and a transfer of funds made from the Alberta Golf Association to the Foundation prior to the year end of September 30, 2016.

2016 ANNUAL REPORT — 45

ALBERTA GOLF ASSOCIATION FOUNDATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016 4. RESTRICTED SCHOLARSHIP FUNDS AND GRANTS (continued) l) Turf Project Fund The Alberta Golf Association Turfgrass Management Scholarship is awarded to students pursuing turfgrass management education. Monies in the Turf Project Fund are raised through an Alberta Golf Association Turf School.

5. DEFERRED CASINO REVENUE Pursuant to the requirements set out by the Alberta Gaming and Liquor Commission (“AGLC”), funds raised through casinos and not expensed have been designated as being held for future years’ expenses of the following types: (a) Administrative costs (maximum 10%) (b) Bursaries and scholarships Details of restricted cash and deferred revenue are as follows: Deferred casino revenue – beginning of year Interest income Casino proceeds Designated expenses and scholarships Deferred casino revenue – end of year

$

$

2016 89,616 751 (36,933) 53,434

$

$

2015 47,666 81 87,317 (45,448) 89,616

As at September 30, 2016, the restricted cash balance was $53,934 (2015 - $93,461). The difference between the restricted cash balance and the deferred casino revenue is due to casino expense payables of $500 (2015 - $3,845), which are included in accounts payable and accrued liabilities.

6. RELATED PARTY TRANSACTIONS The Foundation’s related parties include directors and key management personnel. In addition, directors and key management personnel, or their related parties, hold positions in Alberta Golf Association (“AGA”) that result in them having significant influence over the strategic operating, financing and investing activities of the Foundation.

All transactions with AGA were in the normal course of operations. Transactions between related parties are measured at the exchange amount, which is the amount of consideration established and agreed to by the related parties and which are similar to those negotiable with third parties.

Included in the Foundation’s accounts payable and accrued liabilities as at September 30, 2016, is an amount owing to the AGA of nil (2015 - $8,728). Included in the accounts receivable as at September 30, 2016, is an amount receivable from the AGA of $1,850 (2015 - $6,000).

7. FINANCIAL RISK MANAGEMENT The Foundation is exposed to financial risks through its financial instruments.

Market Risk: The Foundation’s assets include significant amounts of marketable securities. These assets are externally managed.

The value of marketable securities changes in concert with the business, financial condition, management and other relevant factors affecting the underlying organization that issued the securities. In addition, general economic conditions of the markets, in which such organizations operate, change, thereby exposing the Foundation to fluctuations in the value of investments. The fair market value of marketable securities at September 30, 2016 is $282,343 (2015 - $272,897).

46 — ALBERTA GOLF

ALBERTA GOLF ASSOCIATION FOUNDATION NOTES TO THE FINANCIAL STATEMENTS SEPTEMBER 30, 2016

7. FINANCIAL RISK MANAGEMENT (continued) Interest rate risk: Interest rate risk refers to the risk that the fair value of financial instruments or future cash flows associated with the instruments will fluctuate due to changes in interest rates. The exposure of the Foundation to interest rate risk arises from its interest bearing assets.

The Foundation manages its exposure to interest rate risk on its cash and cash equivalents and short-term investments by maximizing interest income earned on excess funds while maintaining the liquidity to conduct operations on a day to day basis. Fluctuations of market rates of interest on cash and cash equivalents and short-term investments do not have a significant impact on the Foundation’s results of operations.

The objective of the Foundation with respect to fixed income investments is to ensure the security of principal amounts invested, provide a high degree of liquidity, and achieve a satisfactory investment return.

Liquidity risk: Liquidity risk is the risk that the Foundation will not be able to meet a demand for cash or fund its obligations as they become due.

The Foundation meets its liquidity requirements by monitoring cash flows from operations and anticipating investing and financing activities.

8. COMPARATIVE FIGURES The comparative figures have been reclassified, where necessary, for consistency with current year disclosure.

2016 ANNUAL REPORT — 47

Jeff Murdoch with his caddie (and son) at the 2016 Alberta Match Play Championship hosted at the RedTail Landing Golf Club