PHGC Annual Report 2015-2016

PENNANT HILLS GOLF CLUB LIMITED ABN 12 000 037 856 OFFICE BEARERS President:

Mr. Allan Watson

Vice-President:

Mr. Ross Howarth

Captain:

Mr. John Buchanan

Hon. Treasurer:

Mr. Chris Gotham

Directors:

Mrs. Amanda Stubbs, Mrs. Moya Shepherd, Mr. Peter Henry, Dr. Vasco De Carvalho and Mr. Phillip Stanton

COMMITTEES Business and Structure:

C. Gotham (Chairperson), J. Buchanan, M. Shepherd A. Watson & C. Allen

Course:

V. De Carvalho (Chairperson), J. Buchanan, C. Gotham, L. Roberts, A. Watson & A. Davidson

Playing and Match:

J. Buchanan (Chair), V. De Carvalho , A. Stubbs, L. Roberts, A. Watson & K. Ferguson

Membership and Member Experience :

P. Henry (Chair), V. De Carvalho, A. Stubbs, P. Stanton, M. Dearlove, S. Nicolas, D. Amos & A. Watson

Strategy and Marketing:

M. Shepherd (Chair), C. Gotham, P. Henry & A. Watson

Juniors and TBYJ

A. Stubbs (Chair), P. Henry, P. Stanton, M. Shepherd, M. Rich, N. Howlett & A. Watson

Clubhouse Projects:

R. Howarth (Chairperson), R. Stevenson, P. Stanton, C. Fraser, R. Hosking & A. Watson

Ladies Committee:

M. Dearlove (President), L. Roberts (Captain), J. Eyles (Secretary), S. Nicholas (Treasurer), L. Stanton (Handicap Manager), N. Chopra, D. Amos & S. Murphy

Life Members:

Men: J. Ferris, A. Gresham & J. Oakley Ladies: M. Sutherland

Delegate to Golf NSW:

Mr. Chris Allen

Auditor:

BDH Audit and Assurance Pty Ltd

General Manager:

Dr. Robin Taylor

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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PRESIDENT'S REPORT It is with great sadness that I begin this report by noting the passing of one of our Life Members, Betty Musgrove. Betty made a major contribution to all aspects of our Club life as is detailed in Margie Dearlove’s Lady Members’ Report. She will be greatly missed and forever remembered.

During the course of the year I have provided members with updates about the activities of the Board and happenings within the Club. The updates were primarily designed to keep members regularly informed of what major issues were being addressed by the Board and what outcomes were being achieved. I hope that members have enjoyed receiving the updates and they provide useful background to this report and the detailed information contained in the individual committee reports.

I am delighted to extend the warmest of welcomes to the 135 new members who joined us during the year.

Your fellow members hope that the coming years bring you the same enjoyment we have had during our time as members.

The enjoyment is generated through every member making a contribution to our Club. Each of us, irrespective of which member category we choose, plays a part in the ongoing success or otherwise of the Club. In addition to subscription payments, members add to the viability and enjoyment of the Club in many ways such as, for example, by participating in golf and function activities, by sponsoring events, by assisting with major charity days, by making purchases in the clubhouse or golf shop, by volunteering time to assist others learn the game, by introducing new members, by maintaining gardens and other parts of the course, by preserving the history of the Club and by serving on the Board and committees.

I thank everyone who has made a contribution during the year; our Club would not exist in its current form without you and your efforts are very much appreciated by your fellow members.

On behalf of all members I would also thank our General Manager, Robin Taylor, and his team for their efforts during the year. The team has made great progress in executing the strategies developed jointly last year by them, the Board and our committees to meet the challenges being experienced by most golf clubs, namely how to: • • • • •

retain playing members attract new members operate profitably maintain capital contribution levels on entry to membership finance major capital works to develop both playing and non-playing facilities to meet the demands of existing and prospective members.

As noted in the committee reports we have made progress in all the above areas: • • • •

there has been an increase in retaining and attracting playing members we continue to generate profits and cash surpluses with an operating surplus before interest and abnormal items budgeted for the 2016/17 financial year as a result of the increased demand for membership the capital contribution paid by new members joining the Club was able to be increased during the year major capital works have been able to be undertaken on the course and clubhouse during the year.

As outlined in my report last year our viability is critically reliant on sustaining membership numbers and attracting a constant flow of new members. The key planks of the Board’s strategy to achieve this are to provide members with: • • •

a membership structure that addresses the lifecycle of golfers upgraded facilities both on the course and in the clubhouse an enhanced member experience both on and off the course.

The proposed improvements to the clubhouse are an integral part of enhancing the experience of being a member of our Club. The Board is unanimous in its recommendation to members for the improvements and encourages members to vote for the recommendations at the Annual General Meeting on 31 October 2016.

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Another integral part of the membership experience is the social activities of the Club and we have enjoyed some memorable functions during the year as a result of the efforts of the Membership Experience committee and our Ladies committee. Both committees I am sure would want me to acknowledge the enthusiasm and talent of Deb Amos in being the driving force behind a number of the major functions.

I am fortunate as President to have had a Board in the last year comprised of individuals with not only a diversity of talent but also with a passion and dedication to improving all aspects of our Club’s activities and facilities to ensure the experience of every member is as enjoyable as possible. Each of them has given generously of their time and I wish to thank their families for being supportive of them doing so.

There are some changes to the Board for the coming year and I would like to acknowledge Chris Gotham who has decided to retire from the Board after two years as the Club’s Treasurer. Chris has brought great energy and experience to the role and has overseen the upgrading of the Club’s management and reporting systems. His work has brought efficiencies to the Club’s operations which we will benefit from for many years to come.

Also stepping down from the Board is Moya Shepherd. Moya has made an enormous contribution to our Club, initially as a member of the Ladies committee from 2005 to 2010, including as Secretary from 2008 to 2010, then as a Board member from 2011. During her time on the Board Moya has been Chairperson of Strategy and Marketing as well as House and Social; and has served on the Course and Playing, Membership, Business and Structure, Junior and Try Before You Join committees. She has also acted as a match referee for many of our major events.

Moya’s commitment to the continued improvement of all aspects of our Club for the benefit of each of us cannot be overstated. Not only has she given freely of her time but our Club has benefited immeasurably from her acumen and experience. Each of us is indebted to her.

In closing I would like to thank the leadership of our Lady members for the support and input provided to me and the Board during the year. We are fortunate to have Margie Dearlove and her committee as members of our Club.

I can once again assure members that all Board members appreciate the trust you have shown in us to oversee the Club’s operations and to set its strategic direction. Currently there are many challenges to maintaining a viable golf club but I trust that you will see from the various committee reports that those challenges are being vigorously addressed as we head “Towards Our Centenary”.

Allan Watson

President

TREASURER’S REPORT NET PROFIT The Club recorded a surplus from club operations for the year of $193,000, made up as follows: $’000 Operating loss before interest and non-operating items

(108)

Interest income

74

Non-operating income and expense

227

Net profit

193

Compared to last year, the result included the following: • Revenues were marginally higher than the prior year Pennant Hills Golf Club Ltd ABN 12 000 037 856

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• • • • •

Operating expenditures before interest and abnormal items increased by $150,000 or 2.6% The operating loss before interest and abnormal items was $95,000 worse than the prior year Course and water treatment plant expenditure of $1,847,000 was marginally lower than the prior year The pro shop recorded a loss for the year of $5,000 which was $21,000 lower than the prior year loss of $26,000 Bar & catering activities recorded a profit for the year of $227,000 which was marginally better than the prior year

SUMMARY OF RESULTS

Total revenue Subscriptions (Note 1)

Actual

Budget

Actual

2016

2016

2015

$000

$000

$000

2,726

2,735

2,693

Golf activities

576

684

553

Pro shop

717

759

684

1,746

1,784

1,743

25

34

62

Total revenue (#)

5,790

5,996

5,735

Operating loss before interest & non-operating items Subscriptions (Note 1)

2,726

2,735

2,693

Profit from golf activities (Note 2)

278

394

332

Pro shop profit / loss (Note 3)

(5)

4

(26)

(1,847)

(1,846)

(1,888)

Bar & catering profit (Note 5)

227

249

214

House expenses

(612)

(622)

(576)

Administration expenses (Note 6)

(900)

(992)

(824)

25

34

62

(108)

(44)

(13)

Interest & non-operating items Interest income

74

66

86

Mobile phone tower rent

48

47

54

Entrance fees

159

165

75

Forfeited F&B levies

20

24

34

-

-

(96)

301

302

153

193

258

140

Bar & catering Other

Course & WRP expenses (Note 4)

Other income Total operating loss before interest & non-operating items

Write down of clubhouse redevelopment costs Total interest & non-operating items

Operating profit after interest & non-operating items

# Total revenue disclosed above differs to revenue disclosed in the Annual report as it excludes revenue shown as non-operating income and pro shop income above includes professional lessons and equipment repairs net of costs.

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REVIEW OF RESULTS (Note 1) Subscription revenues Subscription revenues were in line with budget but, most importantly, were higher than the prior year thereby arresting the decline in revenue from subscriptions last year. The result reflects the positive impact of the change in membership categories introduced on 1 July 2015 and the addition of 135 new members during the year.

Total membership numbers at 1 July 2015 were 1,518 and 1,645 at 30 June 2016.

(Note 2) Profit from golf activities The below budget result for the year is largely due to two factors: •

Significantly lower green fees received from flexible members. This problem has been addressed for the 2016/17 year by the introduction of a higher annual subscription and reduced green fees for flexible members.

•

Corporate green fees were significantly below budget, mainly due to the difficulty in attracting larger corporate golf events, combined with reductions in field size for events booked and budgeted.

Management will be implementing a small business group strategy in the coming year to attract more corporate golf activity.

It was however pleasing that members’ competition fees and visitors’ fees were both above budget.

(Note 3) Pro shop loss Pro shop sales revenues were slightly lower than budget but higher than the prior year. The improvement over the prior year was across all sales categories, including cart hire. Gross margin percentages were higher than both budget and the prior year.

The value of member benefits taken up during the year in the form of free lessons and ball and glove discounts was $16,000. The pro shop result after allowing for these benefits was a very pleasing $36,000 improvement over the prior year.

(Note 4) Course & WRP expenses Course and WRP expenses were contained at levels below both budget and the prior year. Despite higher salary and wage costs, there were savings in a number of operating costs and depreciation costs were significantly lower as a result of many items of machinery becoming fully depreciated.

(Note 5) Bar & catering profit Sales and gross margins were in line with the prior year and employment costs were contained at prior year levels. The bottom line result was a small improvement over the prior year.

(Note 6) Administration expenses Administration expenses were significantly below budget but $76,000 higher than the prior year budget for a number of reasons: •

Higher salary costs resulting from a full year of costs relating to the Finance and Club Operations roles

•

Higher depreciation expenses on office equipment as a result of the full years depreciation of the IT systems purchased during last year

(Note 7) Other income The shortfall of $37,000 against the prior year was mainly due to recognition in the prior year of a one off training grant of $48,000.

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CASH FLOW The Club generated free cash flow during the year of $409,000 after routine capital expenditure of $70,000.

After paid development capital expenditure of $631,000, the net cash deficit for the year was $222,000.

The main capital expenditure items during the year were:

Description

$000

Clubhouse roof

223

Carpet for clubhouse

123

New bunkers holes 4 and 7

108

New bridge on 9th hole #

166

Clubhouse redevelopment costs

116

Course master plan

7 Total

743

# $112,000 remained unpaid and in creditors at year end The clubhouse redevelopment costs comprised architects fees of $100K plus surveyors and inspection costs of $16K.

FINANCIAL OUTLOOK A detailed operating and cash flow budget has been completed for the 2016/17 financial year. The budget is summarised in the following table: Budget

Actual

2017

2016

$000

$000

Total revenue Subscriptions

2,871

2,726

Golf activities

589

576

Pro shop

735

717

1,778

1,746

26

25

5,999

5,790

2,871

2,726

Profit from golf activities

319

278

Pro shop profit / loss

28

(5)

(1,842)

(1,847)

Bar & catering profit (Note 1)

167

156

House expenses (Note 1)

(547)

(541)

Administration expenses

(963)

(900)

26 59

25 (108)

Bar & catering Other Total revenue Operating loss before interest & non-operating items Subscriptions

Course & WRP expenses

Other income Total operating loss before interest & non-operating items

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Budget

Actual

2017

2016

$000

$000

Interest & non-operating items Interest income

49

74

Mobile phone tower rent

48

48

Entrance fees

102

159

Forfeited F&B levies

15

20

214

301

273

193

Total interest & non-operating items

Operating profit after interest & non-operating items

(Note 1) The 2016 results for bar & catering and for house expenses have been adjusted for the re-allocation of the event coordinator’s costs from house to bar & catering in order to more accurately reflect the nature of this role in the Club.

The ongoing challenge for the Club in 2016/17 is the retention and growth of its membership base. Following the introduction of new membership categories in July 2015, the proposal for upgrading the clubhouse, to be submitted for approval by members at the annual general meeting, is a second important step in securing the long term financial viability of the Club.

At 30 June 2016, the Club had cash at bank and on deposit of $3.5 million. This cash position provides a strong basis for the Board’s major capital expenditure plans for the upgrading of the clubhouse over the next two years.

FINANCIAL MANAGEMENT INITIATIVES The Board has recently approved the introduction of further initiatives towards the goal of converting the main trading operations of the Club to cashless activities, thereby saving the considerable costs of the daily counting of cash from all the tills in the pro shop and bar. These initiatives will also enhance and streamline the overall member experience at the Club.

KENDAL BINNS JUNIOR FOUNDATION Donations to the Foundation in the 2015/16 year were $10,559 and the Foundation has spent $12,587 on a number of initiatives to improve the golfing skills of the Club’s junior members and to encourage the growth of junior membership numbers.

CONCLUSION I would like to thank Robin Taylor, Craig Usher and Walter King for their extremely hard work and commitment in the financial management of the Club in what was another challenging year. I would also like to thank the members of the Business Committee, Allan Watson, John Buchanan, Moya Shepherd and Chris Allen for the guidance and assistance they provided during the year in steering the Club’s financial operations.

Chris Gotham

Honorary Treasurer

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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STRATEGY AND MARKETING COMMITTEE REPORT In order to more effectively align our marketing efforts with our strategic aims, following the 2015 AGM the decision was taken to combine the Marketing and Strategy committees however for the purpose of this report the strategic and marketing activities will be reported separately.

Strategic Planning: At a review conducted after the 2015 AGM, the Board reaffirmed its commitment to our strategic framework which is best illustrated in the graphic below

• • •

The golf club landscape is changing The market is contracting We must gain a larger share to remain viable into the future

• •

Our core activity is golf; therefore we have a clearly defined focus The main drivers of attractiveness are Membership Structure/Golf Facilities/ Clubhouse We MUST improve the quality of our member experience if we are to increase market share Major undertakings have a risk/reward profile That we “do nothing” is not negotiable but the scale is …..

• • • • • •

Our undertakings in these major areas rely on our financial strength, underpinned by sound governance and structure We must be more proactive in our marketing and promotion Our success is reliant on members adopting our strategy and their ongoing commitment to its implementation

The Members’ Club of Choice

Membership Structure & Member Experience Golf Course & Practise Facilities

Financial Strength

Governance & Structure

Clubhouse

Marketing & Promotion

Member Adoption & Commitment

In order to actively pursue our aim of being “the Members’ Club of Choice in North Western Sydney” it was agreed specific initiatives of the overall strategy would become the responsibility of relevant Board Committees, with initiatives able to be routinely tracked and tested against our agreed strategic aims and brand value chart.

A review was undertaken by the Strategic Planning Committee in April 2016 to evaluate and measure our performance and recalibrate if and where considered necessary.

The review of the first major focus area, the Member Value Proposition, noted that we had achieved the majority of our initial targeted outcomes. The introduction of the new membership categories and benefits has arrested the high level of churn experienced in preceding years and whilst we have yet to achieve our ultimate target of a return to a waiting list, increased membership in playing categories and resultant larger field sizes has put us in a strong position to consider closing some categories as entry points or introducing a waiting list for those specific categories.

Significantly, as will be reported in more detail by other Committee heads, we have inducted 135 new members but, more pleasingly, the majority of these are in our targeted younger demographic which we had identified as critical to our long term prosperity. As a result we have been able to raise our capital contribution upon entrance to the club.

A complete update on the other two major focus areas of Course and Clubhouse Facilities will be provided by the heads of those respective committees but from a strategic perspective, work in these areas proceeds in alignment with our agreed strategic aims.

Our endeavours in the areas of membership, golf and clubhouse facilities are underpinned by our focus on Financial Strength, Governance & Structure and Marketing & Promotion.

We continue to target a diversified and sustainable revenue base, our capital improvements program is aligned to our overall strategy and we have implemented an IT strategy designed to deliver a fully integrated platform to facilitate our various reporting, communication and marketing requirements.

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We conduct ongoing reviews of our governance, management and staff structures to ensure that they are appropriate to the demands of the business and needs of members.

We are encouraged by the member acceptance and response to our strategic initiatives as evidenced by increased levels of patronage on the course and in the clubhouse and sponsorship of new members.

Our Marketing & Promotion initiatives will be discussed in the section following.

Marketing: The targeted outcomes of the Marketing & Promotion Strategy we have pursued are as follows: ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅

Membership growth driven by members and increased membership in targeted demographics Targeted marketing opportunities which support our overall strategy whilst protecting club culture Marketing Plan for all revenue generating areas The rigorous adherence to a brand value consistent with our desired PRESTIGE market positioning Consistent promotional material - videos, website, documentation Digital marketing strategy thru website/social media Resources specifically tasked with marketing and promotion

In order to deliver on these objectives, we immediately reviewed the desirability of continuing to employ a dedicated in-house resource. We determined that we would be better served by adopting a “campaign” approach to marketing and this could best be delivered by engaging an external resource as required to produce the many and varied elements needed to drive awareness in today’s market.

Conscious of the challenges posed by the declining appeal of golf in the market place we have initially concentrated in our priority areas of member acquisition - specifically 7 Day and Females - and in what we have identified as our preferred niche market of Small Business Group Golf. The development of a campaign for 7 Day members is underway as is a campaign to reposition our offering in the corporate/business marketplace.

In June we staged the Ladies “Taste of Pennant Hills” which was our first major foray into digital marketing employing social media. Of the approximately 20 who attended on the day, which was extremely well presented by the Ladies Committee, to date we have converted 3 new lady members with a possible 4th to follow. We are still evaluating the reach and effectiveness of this strategy.

During July we invited four organisations to submit proposals for the provision of our broader marketing needs. Among many detailed requirements, we have indicated that input into the development of a coordinated annual marketing plan across all our revenue streams is key, along with specific targeted campaigns as and when required. At the time of writing we are very close to making an appointment.

In summary it has been a very busy year but I believe we have laid foundations which will deliver increasing returns in the years to come.

Many people both on and off the committee have made invaluable contributions over the past year.

Unfortunately it is impossible to mention them all but particular thanks to Committee members Peter Henry, Chris Gotham, Anne Goodrick, Allan Watson and Robin Taylor and also to Amanda Stubbs for her considered input when requested.

Thanks also to all Board members for wholeheartedly embracing our strategic plans and working so diligently to achieve them. Our management and staff under Robin’s committed leadership are also to be congratulated for playing their part so well in the roll out of our PRESTIGE brand.

Moya Shepherd

Chairperson, Strategy & Marketing

CAPTAIN’S REPORT At the time of writing, I am close to completing my first year as Captain and my eighth as a Board member.

Let me say that my respect for my predecessors as Captain has grown! And it was already substantial.

When I started in the job, I set as my objective the enhancement of the golfing enjoyment of our members.

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The challenge of the job is to best balance the competing interest of a diverse membership. I’ve tried to make it all about you within an equitable framework.

Enough navel-gazing!

My duties this year as Captain have included chairing the Playing & Match Committee and sitting on the Course Committee under Vasco de Carvalho and the Business & Structure Committee under Chris Gotham.

Of course, I am also a Board Member. The chairs of those committees have reported to you elsewhere in this annual report so I will limit myself to those parts of Playing & Match relevant to all members and to Men’s golf. Ladies golf is likewise covered elsewhere here.

Golf Shop The primary shared interest at PHGC is our sport. Our golf shop team, ably lead by our Head Professional, Geoff Black, is its enabler. Geoff’s leadership has helped deliver a successful year financially while maintaining very good quality service to members. Geoff is closely involved in all aspects of golf at the club and is an especially talented teacher. Geoff has also been responsible for the establishment of the successful golf travel program which many members have already enjoyed. These tours are open to all and are accompanied by one of our golf professionals. The Board’s policy is for these trips to be priced on a cost recovery basis.

Rachel Bailey, our dedicated teaching professional, has excelled this year in bringing on the talents and enthusiasm of our representative teams, juniors and beginners. Rachel has also honed the games of many of our experienced members providing a rejuvenation of their enjoyment and for many an immediate spike in their scores.

Sunny Park looks after most things retail. Andrew Potter is our trainee Professional and Keith Smith is our starter. They provide much of the interaction that members have with the Golf Shop. All contribute well to a great experience for members. I would like to single out Keith Smith as someone who has been helpful to me in my Captain’s role, week in week out.

We also have a fine group of young people who are part of the team; Amie Maguire, James Conn, Matt Davidson, Jared Dries, Daniel Brewer, Hamish Murray and James Skuodas. Thanks for your work.

Playing Statistics suggest that we have completed a most successful golfing calendar. During the course of this year we have recorded non-competition as well as competition rounds. This information is most helpful when contemplating how our most important asset is utilised and the value members derive from it. Please do continue to either book your social rounds on the available timesheets or report to the Golf Shop prior to hitting off.

Weather has had some negative impact on playing numbers as it does every year. In spite of that, we recorded more competition rounds this year than in any in the time I have been on the Board. Our new Membership Categories have clearly contributed to that result. Wednesday fields are now neck and neck with Saturdays for numbers and Sunday fields are also up. The effect of the changed categories is twofold.

Existing members are playing more and importantly we added 128 energetic playing members to our cohort.

Congratulations to Peter Henry for that great success.

Carlie Hoysted is responsible for Golf Operations and Business Golf. Carlie is a delight to work with and provides us with a seamless golfing experience. There is a tremendous amount of detail work that goes on behind Member golf and Carlie does that par excellence. And she takes that same attention to detail to corporate events. Business golf continues to be a challenge in the difficult environment over the last few years. Carlie and the team have reviewed our offering and tailored it to better target the market. We hope to see continuing positive results.

Our biggest events of the year, ASX, MonStar, ALPGA ProAm require an army of volunteers to execute.

Every year, many of the same people and always some new chums volunteer to make these days happen.

They wouldn’t, without your contribution. Thanks for being such generous givers.

Member Benefits It is pleasing to note that our software supplier has provided a long-awaited upgrade to document members available Lessons and Visitor passes. You can now see how many unused visitor passes and golf lessons you have by visiting Members > My Information > My Account on the club’s web site. Can I suggest you don’t leave it until the end of the membership year to take advantage of these benefits? 7 Day members Pennant Hills Golf Club Ltd ABN 12 000 037 856

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are entitled to a 30-minute lesson each half year. This entitlement expires at the end of the half year.

Likewise, Visitor Passes expire although in their case at the end of the membership year.

Men’s Representative Golf The great news of the year is our Major Pennants team win in Division 2 and their subsequent elevation to Division 1 next year. Congratulations to every member of the squad for a great season. Our manager Murray Fogarty did a great job in partnership with Captain, Adam Cordony in bringing the team together and forging the spirit that it takes to win. It is very pleasing to watch a team playing for each other as our team did especially when it comprises a more or less equal mix of teenagers and “veterans”. Both the semi-final and final were nerve racking matches. Thanks to the caddies and many supporters.

As I write we are in the last two rounds of the Eric Apperly Shield with our team needing good results against Long Reef at Killara and Antill Park at Long Reef. Last year’s finalists, Monash closed our team down at Antill Park in the first round but they are a talented crew. We wish them well.

Our Master’s Pennants team played a weather affected season. There were two washouts, only one of which could be rescheduled. The resulting automatic half for the return home match against eventual group winners Bayview removed the opportunity to even the score and exit the group stages. Thanks to Captain, Damian Maguire. Better luck next year.

Our PACK Cup team had a chance to make the final this year but were closed out in the final match. The new season is only a few months away. I’m sure I have seen a lot more practice being done in preparation!

We have a long history of winning this competition.

Our Mixed Pennants team has been led by David Garnsey for 4 years now. This year our Division was won

by The Coast. Under David’s leadership, the team has had some success and some near misses. Over that time David has put in a huge effort getting our team on the course. He has now stepped down. Thank you David.

Jared Dries achieved great acclaim with his performance at the World Speed Golf Championships in Chicago earlier this year. What a great achievement.

Lastly, it would be remiss if I didn’t congratulate all of our Club trophy winners this year. I want to single out Matthew Davidson, our Club Champion and Andrew Richards, the current Pennant Hills Cup holder.

These two young fellows have made a big contribution to elite golf at PHGC this year both being in our Major Pennants and Apperly squads.

We have a talented group of young golfers, some of them constrained in their HSC year competing with each other. Golf is very healthy at PHGC. Thank You I suspect that any year as Captain will have its challenges. The first year must be the toughest! It has been made easier by many willing helpers.

Rob Stevenson has been a great help wherever my inexperience needed a bit of guidance. Chris Allen probably does know how to say No, but always chooses to say Yes and help. His appointment to Life Membership of Golf NSW is notable and fully deserved. Moya Shepherd has also been a tremendous help with refereeing and all things golfing. It has been great to work closely with Vasco de Carvalho and our Course Superintendent, Richard Kirkby.

Our General Manager, Dr Robin Taylor has been a wonderful help to me through the year. We are lucky to have him. We also have a talented, enthusiastic and at times entertaining Board.

My experience of PHGC continues to be one filled with laughter intermingled with a very occasional good round of golf. I trust yours has been also.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Congratulations to Matt Davidson for winning the Club Championship in 2015 and to the other winners of our major team and individual events listed hereunder.

Event Club Champion “A” Reserve Champion “B” Grade Champion “C” Grade Champion “D” Grade Champion Senior Champion Junior Champion Pennant Hills Cup Foursomes Champions AE Marks Cup President’s Cup Captain’s Cup AY Gresham Cup E J Hyde Cup Winter Cup Spring Cup Summer Cup Autumn Cup Founder’s Plate Mixed Fourball Knockout Gold Button 50 and Over 60 and Over Left Hander’s Cup Sep Johnston (February) Eclectic August Eclectic (Wednesday) Vic Kendall Tyro Trophy Lilian Marks Cup Mixed Foursomes Family Plate President v Captain Naggers Cup Black Saturday

Winner Matt Davidson Greg Parrett Craig Jones John O’Sullivan none Greg Wilson Luke Ferrier Andrew Richards - Pennant Hills Golf Club Andrew Richards & David Aramayo Paul Murphy & Stephen Pesavento Roni Scarano Scott Bailey Kevin Stanley Roni Scarano Greg Wicks Michael Brown Chris Sydes Scott Bailey Don Allan Jacqueline & Stephen Barratt Graeme Roberts Sebastian Trouncer Rolf Schufft Geoff Webeck Matthew Davidson Neil Gordon Jordie Garner Judith Dean & David Bailey Judith Dean & David Bailey Mark Golding & Jono Golding President’s Jackie & Steve Barrett Robyn Noonan & Bruce Jones

John Buchanan

Captain

COURSE COMMITTEE REPORT The year 2015 / 2016 brought with it many of the usual vagaries of our climate, the predictable unpredictableness of weather events as well as the continued challenges of a course with the "forest" of established trees and other landscape which demands constant vigilance and maintenance.

We are without doubt fortunate to have a Course Superintendent of the recognised professionalism and caliber of Richard Kirkby, his 2IC Spencer Davison and his dedicated staff who despite the recurring or unusual challenges continue to present us with a golf course which is consistently of an excellent standard.

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The expertise and attention to detail has provided us with not only good playing conditions but surroundings which enhance the overall experience. Our gardens are constantly remarked upon by Visitors and Members.

The support and leadership of our General Manager, Robin Taylor should be recognised. Robin, himself a keen and competent golfer constantly stimulates discussion and input into the problem solving that is so important within an organisation and committee.

Fortunately the overall financial position and management of our Club has enabled many projects and programs to be initiated, continued and/or completed this year. The continuation of our Bunker Redevelopment Program saw the redesign and completion of the green side bunkers on the 4th and 7th holes. In a similar way to the changes last year to the 1st hole, these have been generally well appreciated

by Members and the playability, consistency and relative ease of maintenance demonstrate the value of this program. The ongoing program will continue to deliver better playing conditions which enable us to better enjoy the various aspects of the challenges of golf without the added frustrations of "unfair" lies, unreasonable variations within bunkers or unplayable conditions. The considerable burden to our staff in trying to rectify the impact of even moderate rain events let alone the extremely high maintenance impost after major weather events in majority of our older bunkers will be significantly reduced by the changes.

As part of the recognition that several of our bunkers pose many of the negative aspects of our course conditions and utilise too much resource to merely maintain them as "playable" the Course Committee reviewed the proposal from Staff to fill in a range of bunkers throughout the course. The bunkers considered were principally those which require excessive maintenance and provide questionable benefit to the playing strategy of the respective hole. In order to ensure consistency with the character of our course Jim Wilcher, Course Design Consultant was asked to provide input to the proposal as well as indicate in general terms the nature of the conditions which would replace each of the bunkers chosen. This project will follow the format of our other recent projects with Members being shown the extent and nature of the proposed changes before actual commencement. The infilling should start in the last quarter of 2016.

The need to replace the ninth bridge had been considered for several years and thankfully it was successfully completed in early July 2016. Prior input from one of our members Peter Trickett and role of one of our current Director's Phillip Stanton should be acknowledged. As Members would have noticed the new bridge is slightly wider and the approaches have been marginally altered. The Contractors have done a good job and Richard's Team have worked tirelessly to re-establish the Ninth Hole during the non-growth period of winter.

During 2015/2016 we have undertaken the necessary tree removal and trimming in keeping with the commissioned tree audit undertaken towards the end of 2014/2015. Australian Tree Consultants provided an extensive audit of the trees and to date we have removed those considered to be at highest risk of losing significant sized limbs and/or falling. The safety of players and staff is clearly the primary concern and all "critical" and "urgent" category trees have been removed. Contrary to the observations of some of our more humorous and imaginative members the intention is not to convert PHGC into a "links style course" but merely to provide as responsibly safe and appropriate environment as possible.

I wish to acknowledge the huge input and dedication of our Captain John Buchanan not only as a member of the Course Committee but importantly as the Director most involved in majority of the day to day interface and decisions associated with our playing the course. The splitting of the responsibilities of Chair for the Course Committee from Playing & Match Committee was in recognition of the unrealistic demands and expectations of the role of Captain in having to preside over the governance of these committees.

It leaves me only with the task of thanking all members of the Course Committee and acknowledge the input of Leslie Roberts, Ladies Captain and Andrew Davison who was co-opted as a non-Director, during this very busy year and wishing all Members continued enjoyment of our excellent golf course and its conditions.

Vasco de Carvalho

Chairperson, Course Committee

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CLUBHOUSE REPORT At the time of writing, final preparations are in hand for presentation to members in early September of detailed plans and the business case for modifications and improvements to our Clubhouse.

Our initial member information sessions were held in October/November 2015 and the positive feedback has been the cornerstone of the ongoing plan development through 2016 to date.

The cornerstone of our development strategy has been a high level focus on member facilities as well as the desire to ensure that in reconfiguring the layout we achieved operational improvements. The key elements are: • a two level extension to the 9th hole end of the clubhouse to provide new male and female locker rooms • a reconfiguration of the members’ lounge to improve the current inefficient L-shape and provide visual and people traffic flow to a new, expansive terrace • a new “members only” entrance providing easy access to locker rooms and the members lounge upstairs • a new ProShop within the lower ground section of the clubhouse • bringing together the food and beverage storage, preparation and service onto the one level.

Following the member presentations late last year, we set about analyzing the feedback and revising the plans to incorporate the valuable input received.

As our building dates back well beyond the incorporation of current planning and building codes, issues were encountered that required careful consideration and resolution. Thankfully, the expertise of Phillip Stanton, along with our architects and Council executives, lead to a successful outcome that will ensure full code compliance without what first appeared to be the potential for a severe financial impact.

That took some time but, with that behind us, we were able to move ahead with further plan refinement and extensive financial modeling to ensure that the September presentation to members covers all issues and leads to member acceptance.

While this planning work has been underway, we have remained mindful of the need to maintain a presentable home and the replacement of the roof and new carpet throughout have certainly enhanced feel and comfort for members. Repairs to the terrace off the Beecroft Room will also be carried out either this year or early next.

Assuming member acceptance at the AGM, the future timeline sees DA approval and the tender process being completed by April next year with construction commencement anticipated for July 2017.

We are very fortunate to be working with a very professional team at ABEO Architects and I thank them for their contribution as I do to the Committee members Rob Stevenson, Phillip Stanton, Robin Hosking, Clare Fraser and our President and General Manager.

Ross Howarth

Chairperson, Clubhouse Project

MEMBERSHIP AND MEMBER EXPERIENCE REPORT In 2014/15 the Board and Membership committee undertook a major review and realignment of the club’s membership categories, with a focus on a sustainable solution that catered to members needs throughout their golfing lifestages.

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In 2015/16 we welcomed 135 new members to the Club, this intake of new members is the best result we have had for a number of years and reflects in part the more flexible category structure we now have. It also reflects the efforts of existing members to introduce their family and friends to the Club and the hard work undertaken by our Membership Committee. Also very positive is the average age of our new members is 40 years of age. With this positive membership trend we have also increased the new member Capital Contribution Fee, something most clubs are not able to achieve.

As previously advised it will take some time before the long term impact of the change in membership categories will be able to be assessed. Revenue trends and daily field sizes are constantly being monitored by the Board and given current trends there is a growing possibility that some categories of membership may be closed to new members during the course of the year.

Recruitment and retention requires continuous effort. Our particular targets to fill our category gaps now are 6 Day Ladies and 7 Day & Flexible under 40’s and we continue to focus on membership value.

Our Introductory Clinic and Try Before You Join program continue to be a wonderful source of new members. They attract not only friends and relatives of members but also people from our local community.

The aim is to provide them with some golfing skills and an understanding of golf etiquette and rules while exposing them to the culture of our club. Gratitude is due to our volunteers without who this program could not run, your contribution is invaluable.

Sadly, during this membership year these members passed away; Coralie Astridge, Ramon Bullock, Geoffrey Cameron, Leonard Eldridge, William Grant, June Hartcher, Robyn Horn, Martyn Isbell, Patrick Madden, Betty Musgrove, Gisela Quednau, Brett Richardson, Graham Stanford and Barbara Wicks. We honour them in our memories and offer our condolences to their family and friends.

Financially from house combined Bar & Catering revenue, inclusive of revenue from room and equipment hire for the fiscal year 2015/16 was $1,746,165 being $37,734 unfavourable to budget. Net profit at $226,926 was also unfavourable to budget by $22,054 but $13,388 ahead of last year, Margins also remained above budget by 0.5%. These results support the Board and Management’s significant structural changes that occurred last year, streamlining the operations of our Food & Beverage area and consolidating the reporting responsibilities for kitchen, bar and events under one Head of Operations Walter King.

With Walter’s team focusing on the delivery of improved services and options for daily trade to members and Siobhan Reeve’s dedicated focus on Events, we continue to receive positive feedback that we are moving in the right direction. We are confident that this new structure will continue to deliver an improved catering and service experience to our members and enhance our ability to generate much needed external function income.

On the social front, we acknowledged this very important element of PHGC needed improving and introduced a dedicated social committee headed by Deb Amos. A special thanks go to this team who have put so much fun back into the club, they include De Howarth, Karen Patterson, Su Maxwell and Les Emerson and many others. You have returned the social atmosphere we are known for with the highlight being the ABBAlanche and RIO Olympics’ nights.

Many other events continued the tradition with the Annual dinner, Sportsman night and many other one off events providing great entertainment. The Masters Breakfast continued with a full breakfast served as we watched the final round followed by an 18 hole shotgun start event which culminated with the winners Nitin Kataria and Joan Rutherford receiving the now famous PHGC Green jackets.

Also pleasing is the reinvigoration of Friday night dining with the introduction of Friday Fireside Cup and the midweek and Sunday chef cooked BBQ proving popular, our thanks to Brett and his team in the Kitchen.

We have also received very positive feedback to the improved focus on members private functions, be it significant birthday celebrations, births, deaths or marriages. Reflective of this is the marked increase in membership numbers attending club functions and non-golf related arrangements at the club.

I would like to thank the Membership & Experience Committee Members for the continued support, innovative thinking and good humour they bring to the tasks at hand. The Social Committee is hard at work on ideas for the coming year and as always we rely on the continued support of our membership to enhance our great club community.

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While we are finalising the Clubhouse renovations plans it is pleasing we have now completed the roof replacement, which then allowed the carpet to be replaced and what a difference that has made to the look and feel of the club, but this committee remains focused on incorporating key member benefit areas within the revised plans.

There are many people who contribute to the sustainability of our membership. Your committee this year comprised Allan Watson, Amanda Stubbs, Vasco de Carvalho, Phil Stanton, Margie Dearlove, Deb Amos, Robin Taylor and myself. It has been a pleasure to work with such clever and innovative individuals.

To the many others who have helped and especially to those of you who have introduced your family, friends or colleagues. Thank you.

Peter Henry

Chairperson, Membership and Member Experience

MEMBERSHIP CATEGORY STATISTICS As at 30 June 2015 Category

Members

Associates

Life

3

2

Full Playing

386

168

Honorary

0

1

Junior Playing

35

7

Junior Limited Playing

5

1

Junior Restricted Playing

16

1

Cadet

42

14

Senior Cadet

22

0

Limited Playing

154

71

Restricted Playing

110

21

Country

26

6

Overseas/Interstate

0

0

Special Playing

6

1

Senior Playing

91

27

Special Senior Non Playing

12

16

Senior Restricted Playing

22

7

Senior Limited Playing

13

2

Absentee

43

10

Intermediate Playing 1

18

2

Intermediate Playing 2

7

0

Intermediate Playing Limited 1

3

0

Intermediate Playing Limited 2

3

1

House

194

74

1,211

432

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As approved by the Members at the General Meeting held 22nd April 2015 new Membership Categories came into effect on 1 July 2015 members were migrated to the new membership categories. The below figures also accounting for resignations received during the FY16 renewal cycle.

As at 30 June 2016

As at 1 July 2015

Category 2 Day Member

Male 88

Female 51

Male 60

Female 52

6 Day Member

176

176

154

160

6 Day Member 21 to 25 Yrs

10

2

10

2

6 Day Member 26 to 30 Yrs

2

2

2

1

6 Day Member 31 to 40 Yrs

11

3

8

2

6 Day Member Over 80 Yrs

4

6

4

7

6 Day Member Senior

40

23

42

24

7 Day Life Member

3

2

3

2

7 Day Member

273

0

254

0

7 Day Member 21 to 25 Yrs

22

1

18

1

7 Day Member 26 to 30 Yrs

16

0

13

0

7 Day Member 31 to 40 Yrs

22

0

19

0

7 Day Member Over 80 Yrs

2

0

2

0

7 Day Member Senior

63

0

64

0

7 Day Member Special

6

0

6

0

7 Day Member U21 Yrs

76

14

53

7

Deferred Member

237

53

242

57

Flexible Member

74

8

56

7

Honorary Member

0

1

0

1

Social Member

100

76

106

77

Staff Member

1

1

1

1

1226

419

1117

401

OBITUARY Inevitably, each year some of our members pass away. In the period of this report we lost Coralie Astridge, Ramon Bullock, Geoffrey Cameron, Leonard Eldridge, William Grant, June Hartcher, Robyn Horn, Martyn Isbell, Patrick Madden, Betty Musgrove, Gisela Quednau, Brett Richardson, Graham Stanford and Barbara Wicks. We offer our condolences to their family and friends. Though it is a sad note to report, I’m certain they are remembered fondly.

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JUNIORS AND TBYJ REPORT In the last quarter of 2015 a dedicated committee was formed to support our ‘beginners’ programs for both Juniors (U21s) and TBYJ (adult) beginner golfers. The committee comprises Allan Watson, Moya Shepherd, Phil Stanton, Peter Henry, Geoff Black, Rachel Bailey, Nicki Howlett and Margaret Rich - quite a large group but one with lots of work to do!

The Junior Program had been lapsed for approximately 9-12 months and was boosted with the appointment of Rachel Bailey who exhibits a rare passion for nurturing young players. It was determined that a new format would be put in place with all clinics being transferred to a Sunday afternoon thus providing more course access than the congested Saturday afternoons.

Rachel commenced with 12 children holding 1-2 clinics on a Sunday and in a short time has increased the numbers to 41 children (28 boys 13 girls) plus a waiting list. On Sundays we now have three coaching clinics plus one clinic on a Thursday afternoon. The juniors have relished course access and we have watched in a very short time the growth in their skills and understanding of the rules. Recently Rachel also introduced an advanced clinic (held once per month) which is offered to those juniors who are categorised at an intermediate / advanced level.

The new program seems to be working well and numbers have increased significantly without the need to directly market with our success being due to word of mouth. I commend Rachel on her exemplary work and the support of Geoff Black and Andrew Potter and look forward to watching this program produce fine young members of our club. I would also like to thank Nicki Howlett who assists Rachel consistently in supervising the young golfers on the course. As always we are always struggling for help on a weekly basis so if you can provide 1 or 2 times per year it means so much to the growth of our younger players.

We thank the Thornleigh Driving Range for their continued support and know this relationship will grow as our program grows. Finally I would like to thank the Kendall Binns Foundation and all the members who have generously donated to this worthy cause. Your ongoing support allows the steady growth of our young golfers and we are truly thankful for this longer term commitment to our game and PHGC. The Try Before You Join (TBYJ) program continues to bring in new adult members to our club and as at writing has introduced 53 new members (42 females 11 males) since its inception in 2013.

We need to remind ourselves that taking up golf as an adult is quite difficult and women in particular need extra support and nurturing. This program requires a lot of voluntary work and we are grateful for the previous assistance of Judy Dean and more recently Margaret Rich and Susie Nicholas who have put countless hours into supporting our new players. The Ladies Committee have worked tirelessly on this program and continue to do so. I commend all those members who have given their time – so many of our new members have benefited greatly by your efforts.

At the time of writing we are about to review the TBYJ program as we are of the belief that coming into a private golf club can be quite daunting and we wish to make the transition from a novice golfer to a member of this club a smooth and easy transition. Once again if you have time to assist on a Thursday afternoon it would assist us. Finally thank you to the staff and ground staff of the club who support and assist us whenever we reach out. It’s comforting to know you are always willing and able.

Amanda Stubbs

Chairperson, Junior and TBYJ

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LADY MEMBERS’ REPORT All activities for 2015-16 are detailed in the Ladies Annual Report.

Ladies Committee for 2015-16 President: Captain: Secretary: Treasurer: Handicapper:

Margie Dearlove Lesley Roberts Joan Eyles Susan Nicholas Lyn Stanton Sandra Murphy Naseem Chopra Deb Amos

There is a very happy and enthusiastic atmosphere amongst the lady members of the club this year. We have welcomed a number of new members and it is very heart-warming to see them enjoying their golf and participating with enthusiasm and energy in all aspects of the Club. They are also spreading the word and many are encouraging their friends to take up the sport.

We held “A Taste of Pennant Hills” day in June specifically organised and marketed to attract more ladies to join the club. Fortunately it was a spectacular day weatherwise and many volunteers and staff worked very hard to ensure the 30 ladies who attended were treated to a great “golf club” experience. The result has been extremely positive with a number of ladies joining and more signing up to our Try Before You Join Programme.

This programme continues to be very successful. Our professionals, predominantly Rachel Bailey, run six weekly, hour-long clinics and this is followed by supervised on-course practice for a total of six months.

Participants, both men and women, have the opportunity to join the Club at any point which is an excellent way to build on their new golfing skills. Thank you again to Marg Rich and Susie Nicholas who organise and nurture these new golfers and thank you also to the ladies who volunteer their time to take them out onto the course and give them that personal touch.

Rachel Bailey has also transformed our Junior Development Programme and she is achieving great success converting young talented golfers to join the club. Nicki Howlett is also giving lots of her time to help nurture these young players.

Our second LPGA PRO-AM event was held early this year and despite being disrupted by the weather, was once again a well organised and exciting event and one which we hope will continue to grow. A great many members, both men and women, participated or assisted in very many ways over the two days and all thoroughly enjoyed it.

This year we converted the “Thrills in the Hills” two day event to a “High Tee Classic” one day event. It was a shotgun start so that we could all enjoy the delightful High Tea and Champagne provided by the Club and everyone was excited with the many beautifully presented prizes that we were able to offer. We had a full field of 126 players and 20 clubs represented. As the format was so well received, we will almost certainly repeat it next year.

Your committee organised a great “Greens Renovations” trip to Magenta Shores this year. Two days of challenging golf was organised so the ladies were ready to relax and enjoy a wonderful social evening after a tough round. A mystery day out has been organised this year for the first time during our second greens renovations in November so we all have another special day out to look forward to then.

This year the majority of our successful Major Pennant Competition team of the previous year were unable to represent Pennant Hills so we played in the Friday Grade competition. Our team consisted of Judy Dean, Ashley Cramond, Nicki Howlett, Liz van Hooven, Leonie Shaw, Netti Buchanan, Amie Maguire and Mimi Elina. It was good experience for these players, some of whom have been denied the opportunity to play in Pennant Competitions in the past few years.

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We have also entered teams in seven other Interclub Pennant competitions and the players have really enjoyed the experience and especially playing on other courses throughout Sydney. For a number of ladies it was their first time playing Pennants and they took up the challenge with gusto and enthusiasm. Our thanks again to our professionals who conducted weekly clinics for the Pennant players. This initiative was very much appreciated. Our Sunday Winter Pennant team have repeated their success of last year and held on to the title for another year. Congratulations to Anne Goodrick, Mimi Elina, Annelie Chapple, Sue Weatherley, Tanya Whitmarsh and Kay Lee. Each year we participate in Interclub competitions with Avondale, Castle Hill and Oatlands. Home wins have prevailed in the last few years so it remains a very friendly day of golf and lunch. This year a new competition has been introduced aptly named The Devlin’s Creek Challenge. Apart from one objective being to keep out of the Creek, the format of singles, fourball and foursomes adds interest to our golfing calendar.

Inaugural winners, Helen Sugden and Sandra Parker, are to be congratulated on their consistency and tenacity in holding out over strong competition over the three days of play.

Our thanks also to Sue Fabian and Moya Shepherd for sharing their knowledge and expertise with regard to the rules of golf with our membership. We are very fortunate to have access to such highly qualified referees.

Deb Amos has been seconded to the Member Experience Committee and she is completely committed to improving the social aspects of the Club. Her sub-committee comprising Su Maxwell, Karen Long and Karen Patterson have been working diligently to build fun, interesting, entertaining and well organised events for us to enjoy. It would be good to see all the effort rewarded by members attending the events in good numbers. The PHGC Olympic night was the culmination of a huge amount of preparation and organisation and resulted in a wonderful night of entertainment for members and their guests.

Trish Johnson and Lisa Hamer once again created our highlight of the year in a show entitled Hotel California. Everyone enjoys this night so much, no more so than these two ladies and all those who participate. Our members are always happy to contribute in whatever way they can towards the success of the evening. It is hard work but a lot of fun which certainly pays off on the night.

Thank you also to Sue Rogge, Carolyn Brereton, Kay Brunner, Kay Temple and Leanne Goodall for their work in providing an opportunity for ladies to play bridge. This close-knit group of ladies go out of their way to care for any one of their members who may not be in the best of health or otherwise have some stress in their lives. This is apart from maintaining their competitive spirits with cards instead of clubs. It certainly is a vital part of our Club membership.

Pilates remains popular and our thanks to Joan Eyles and Lyn Stanton for looking after this activity. They would like to encourage more ladies to participate in this very beneficial exercise. We also need to acknowledge Margie Fairfax and Joan Rutherford who look after the flower roster as well as Lyn Brownlee and Lyn Isles who keep our library in order.

Once again we thank Ron Harper and Ann Crisp from the History Department. We are one of the few clubs which has members prepared to offer this service and the Club will benefit greatly from their work in years to come.

Kay Temple and Jan Spears are our Veterans Delegate and Assistant again this year. Thank you to both ladies for their efforts and hopefully we will be treated to Beverley Thompson’s beautiful daffodils again this year on Veterans Visitors Day. Our thanks also to Robin Hosking and Clare Fraser who have been working with our Clubhouse Committee for quite some time now. We can already see improvements with the new roof and new carpet and these ladies will continue to assist with their time and expertise.

Many ladies have joined the gardening volunteers group including Chrissie Grier, Judith Grant, Cheryl Hayres, Ann de Carvalho, Gail Holsgrove, Rhonda Parkinson, Netti Buchanan, Lyn Goodsir, Pauline Sunderland, Lesley Roberts, Margie Dearlove, Tina Lee, Clare Fraser, Naseem Chopra, Robin Hosking, Annie McDonald, Helen Sugden, Barbara Lumsden and Maggie Rowe and we are grateful to them for giving up their free time to help Rod Fletcher, our horticulturalist, to keep the gardens looking beautiful. The beauty of our gardens adds another dimension to our golf club.

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It is important that every member feels part of our Club and Jo Taylor is helping to ensure that this happens by acting as our liaison with the two-day lady members. Our committee has organised the occasional get together with the two-day lady members so that we can all keep in touch.

Major Trophy winners for 2015 and 2016: Club Champion 2015: Bronze 1 Champion 2015: Bronze 11 Champion 2015: Pennant Hills Cup 2015: Pennant Hills Bronze Salver 2015: Presidents Cup 2016: Captains Cup 2016: Singles Knockout 2016: FourBall Knockout 2016: Foursomes Champions 2016: Bronze 1 Foursomes 2016: Bronze 11 Foursomes 2016:

Liz van Hooven Judy Einberg Isabel Illingworth Stephanie Solia, Cabramatta Kyung Choi, Ryde Parramatta Helen Sugden Naseem Chopra Lyn Brownlee Sally Moffat and Marcia Suviste Judy Dean and Deb Bennett Mary Love and Barbara Weiley Jenny Harvey and Susan Garrigan

This year we have sadly lost much loved June Hartcher, Robyn Horn, Coralie Astridge, Gisela Quednau and a previously long-standing member, Barbara Wicks. A gardenia was planted in the garden under the office windows for Robyn at the request of her daughter, and beautiful proteas, bottle brushes and grevilleas have been planted in the garden bed near the 11th green and 4th tee. Hopefully these will flourish so that we will have beautiful flowers for our clubhouse for years to come.

We also lost Betty Musgrove who was a member of the Club for an astonishing 66 years having joined the Club in 1950 as Miss Betty Brown. In 1991 Betty was made a Life Member of the Club and celebrated her 90th birthday earlier this year.

Betty Musgrove

Betty was a highly qualified business woman when she joined and was the driving force behind the reinvigoration of the “Business Girls Trophy” at the Club. She, fittingly, won the trophy in 1956. Betty was very involved in all aspects of the Club and served on the Associates Committee for 11 years, four of those as President.

1926-2016 Betty’s name will always be associated with social events including farewells, fundraising events and in particular the Associates Christmas Concerts. Betty directed these for many years. She was a perfectionist in every way – so much so that participating Associates well remember rehearsals continuing until late at night, then often lengthy phone calls on following days to make sure cast members were quite familiar with their roles. She wrote and directed “My Fairway Lady” which was performed in 1973 and repeated in 1984.

Such was the professional standard of this show that it was the first and only Associates Christmas Concert which was repeated for a mixed audience.

Betty had a keen sense of humour but equally she would never ask anyone to do anything that she would not be prepared to do herself. She helped greatly to achieve recognition for the women members and to establish Pennant Hills Golf Club as a truly family club. She was a great contributor, much admired and loved and will be missed by all who were fortunate enough to know her. Farewell Betty, it was a privilege to have met you.

On behalf of the lady members, I thank the Board Members for their work over the past twelve months. This is a very energetic, enthusiastic and pro-active Board and they have always been and continue to be very responsive to any concerns of the lady members of the Club. Things are ‘happening’ around the Club and this is due to the attention to detail which our Board members are applying to their respective areas of responsibility.

Robin Taylor has the challenging task of managing quite a large workforce as well as maintaining a calm and friendly atmosphere in the Club and also on the well maintained and beautiful course. We are very

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fortunate to have some excellent people working to make our Club membership as enjoyable as it can be and we do appreciate their efforts.

Finally, I would like to thank my Committee for their support throughout the year. There are many wonderful people in this Club and I am privileged to be working and playing with many of them. Thank you everyone for always answering the call to arms when asked and let’s continue to enjoy the wonderful competition and fellowship in this place.

Margie Dearlove

Ladies President

KENDAL BINNS FOUNDATION REPORT It was another excellent year in the foundation’s mission to support the development of our junior members.

The foundation again thanks: • • • •

All the members who continue to donate to the foundation Rachel Bailey for her excellent running of the cadet program Thornleigh Golf Centre The board of Pennant Hills and the office staff

Thanks to the continued support of our members we were able to support 26 Pennant Hills Juniors and still remain with $25458.25 in the bank as of 4 July, 2016.

The cadet program is starting to develop young players to become playing members. For example, we now have at least 6 members 13 or younger playing in regular competitions: Olivia Kerr, James Skoudas, Hamish Murray, Tom Davey, Nick Nathan and Ryan Richards.

We are also seeing a better balance between potential young male and female members.

All 26 supported juniors have a minimum of $100 to spend at Thornleigh Golf Centre. This $100 is a shared cost between the foundation and Thornleigh. Our premise is that the young people will want to continue playing golf if they continue to improve.

The board through Allan and John has made it clear that they support the foundation and realise the immediate and long term benefits from the foundations activities. Craig Usher, the club’s accountant, has spent countless hours meeting the changing demands of the Australian Sports Foundation’s continuing requests for financial information. Kim Truijens, our club receptionist continues to find time to support the foundation in the many time consuming details never envisioned when the program began.

Finally, due to the continued support mentioned above, the foundation has been able to begin supporting in a small way 8 of our members who have turned 21 and 5 of our very young members who are currently in the cadet program. This brings the total young golfers to be helped in 2016/2017 to at least 40.

The trustees of the KBJF continue to be: Ed Truscott, Amanda Stubbs, Nicki Howlett, Graeme Martin. They welcome any opportunity to discuss what is happening in the foundation.

Ed Truscott

Chairperson, Kendal Binns Foundation

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EX-SERVICE SECTION REPORT The 87th Ex-Service Day was held on the 70th Anniversary of VP Day and in conjunction with the Remembrance Day Trophy on 15 August 2015. In a field of 196 players, only 11 club Ex-Service members were joined by six serving visitors from Navy, two from Army and one RAAF member. There were two other Ex-service guests of members. For the tenth year, Greg Waterson donated the Remembrance Trophy keeping alive the 'family' association with the original donor of the perpetual trophy. The Remembrance Trophy for 2015 was won by Bill Akdogen with 39 points OCB. The winner of the Ex-Service Trophy was Bryce Corderoy with 34 points OCB. Two members were invited to play in the Governor's Legacy Trophy at the Royal Sydney Golf Club on 20 November. They were Bill Akdogen and Gavin Pearce who enjoyed another wonderful day courtesy of Legacy. Our success in raising funds for Legacy depends on the efforts of many members. In particular, Terry Gilchrist and John Anderson took a record $2195 on the 18th hole, Michael Rowan and Peter Sprowles generously donated prizes for the raffle, our professional, Geoff Black donated a 'special' putter, Allan Meaker and four members of Parramatta Legacy gave their time and other staff members helped to maximize our fund raising. However, the most significant help was provided by our members who gave generously. And for that we are very grateful. Legacy was presented with a donation of $6000.

Geoff Lumsden

Chairperson, Ex–Service Committee

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DIRECTORS’ REPORT The directors present their report together with the financial report of Pennant Hills Golf Club Limited (“the Company”) for the year ended 30 June 2016 and the auditor’s report thereon.

Directors The Directors of the Company at any time during or since the end of the financial year are: Information on Directors Directors Names J A Buchanan V. De Carvalho E C Gotham P D Henry R W Howarth M K Shepherd R T Stevenson D P Stanton A L Stubbs A J Watson

Occupation Company Director Medical Practitioner Chartered Accountant Business Consultant General Manager - Media Retired – IT & Marketing Managing Director Architect Company Director Chartered Accountant

Year elected 2008 2013 2014 2014 2010 2010 2006 2015 2011 2011

Resignations and Appointments

Resigned 19/10/15 Appointed 19/10/15

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Directors Names J A Buchanan V. De Carvalho E C Gotham P D Henry R W Howarth M K Shepherd D P Stanton A L Stubbs A J Watson

Sub Committee Responsibilities Playing and Match (Chairperson), Business and Structure & Course.

Course (Chairperson), Membership and Member Experience & Playing and Match.

Business and Structure(Chairperson), Course & Strategy and Marketing, .

Membership and Member Experience (Chairperson), Juniors and TBYJ & Strategy and Marketing.

Clubhouse (Chairperson).

Strategy and Marketing (Chairperson), Business and Structure & Juniors and TBYJ. Clubhouse Project, Juniors and TBYJ & Membership and Member Experience Juniors and TBYJ (Chairperson) & Membership and Member Experience.

As President is an ex-officio member of all Committees

Company Secretary Dr Robin Taylor, holds the position of Company Secretary and General Manager of Pennant Hills Golf Club.

Dr Taylor has been Company Secretary and General Manager for three years after joining the Club from Centennial Park Trust where he held the position of Manager Sport and Recreation. His previous management experience includes senior management roles with Sydney Airports Corporation and NRMA Motoring and Services.

Principal activities The principal activities of the Company during the financial year were the administration and operation of a golf course and a licensed social club for members of the Company.

These activities provided the foundation for the achievement of the short and long term objectives of the Company.

There have been no significant changes in the nature of these activities during the year.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

24

Short-term objectives The Company’s short-term objectives are to enhance: • • • •

The quality of the golf course.

Member facilities including the club house.

The golfing community demand for membership of the Company.

Member satisfaction and participation in club activities.

Long-term objectives The Company has the following long-term objectives: • • •

Continue to operate as a private golf club.

Provide for members and their families and friends an environment where everyone can: feel welcome and safe; enjoy camaraderie; and belong.

Strengthen the financial sustainability of the Company.

Strategies to achieve Objectives The Company is pursuing the following strategies to achieve its objectives: •

Review of core member services to identify and deliver services that foster member camaraderie and satisfaction and make the club attractive to new members.

•

Strengthening of sales and marketing focus to deliver additional revenue that has minimum impact on existing member activities.

•

Refining membership categories to assist existing member retention and recruitment of new members.

Implementation of operational efficiency programs to reduce fixed operating expense levels.

Implementation of programs to ensure efficient use of the Company’s physical assets.

• • • • •

Development of a capital funding plan for the club house improvement and physical plant required to support the objectives.

Implementation and refinement of the master plan for the ongoing development of the course Review of the club’s governance and management structures to support the objectives.

Measurement of Performance Management provides the Board with monthly operational reports for the Company activities which include the key performance indicators of financial results against budgeted outcomes, details of course maintenance and improvements activities, outline of member playing and social activities and changes in membership numbers and categories.

Directors’ meetings The number of directors’ meetings and number of meetings attended by each of the directors of the company during the financial year are:

Directors Names J A Buchanan V. De Carvalho E C Gotham P D Henry R W Howarth M K Shepherd D P Stanton R T Stevenson A L Stubbs A J Watson

Maximum Attendances Possible 12 12 12 12 12 12 9 3 12 12

Pennant Hills Golf Club Ltd ABN 12 000 037 856

Meetings Actually Attended 12 12 10 12 10 12 7 3 8 12 25

Statement of Comprehensive Income For year ended 30 June 2016

Note

2016

2015

$

$

Revenue

2

6,258,572

6,039,831

Other income

2

-

3,322

Raw materials and consumables used

2

(999,829)

(981,581)

Member benefits expense

2

(75,597)

-

Employee benefits expense

2

(2,767,889)

(2,539,621)

Depreciation and amortisation expenses

2

(445,051)

(554,219)

Write down in capitalised development costs

2

-

(95,671)

Other expenses

2

(1,777,549)

(1,732,276)

192,657

139,785

Donations received

10,559

34,163

Foundation monies expended

(12,587)

(6,675)

(2,028)

27,488

190,629

167,273

-

-

190,629

167,273

Other comprehensive income for the year

-

-

Total comprehensive income for the year

190,629

167,273

Surplus from Club operations Kendal Binns junior foundation

Surplus/ (Deficit) from Kendal Binns junior foundation Surplus before income tax

13

Income tax expense

Surplus after income tax

The accompanying Notes form part of these Financial Statements and should be read in conjunction herewith.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

30

Balance Sheet 30 June 2016 Note

2016

2015

$

$

Current assets Cash and cash equivalents

15(a)

3,542,574

3,764,525

Trade and other receivables

4

34,910

111,634

Inventories

5

166,486

144,494

Other assets

6

61,441

44,776

3,805,411

4,065,429

4,581,143

4,213,425

Total non-current assets

4,581,143

4,213,425

Total assets

8,386,554

8,278,854

Total current assets Non-current assets Property, plant and equipment

7

Current liabilities Trade and other payables

8

570,242

377,994

Provisions

9

161,490

171,103

Other current liabilities

12

1,965,204

2,215,509

Deferred income

10

Total current liabilities

47,130

46,829

2,744,066

2,811,435

Non-current liabilities Long-term provisions

9

48,131

26,891

Long term deferred income

10

812,423

849,223

Total non-current liabilities

860,554

876,114

Total liabilities

3,604,620

3,687,549

Net assets

4,781,934

4,591,305

4,756,474

4,563,817

25,460

27,488

4,781,934

4,591,305

Members’ funds Retained earnings Kendal Binns junior foundation reserve Total Members’ funds

13

The accompanying Notes form part of these Financial Statements and should be read in conjunction herewith.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

31

Statement of Changes in Equity For the year ended 30 June 2016

Accumulated Funds

Kendal Binns Foundation Reserve

Total Members’ Funds

$

$

$

4,424,032

-

4,424,032

Surplus from Club operations

139,785

-

139,785

Surplus from Kendal Binns junior foundation

27,488

-

27,488

Transfer to Kendal Binns junior foundation reserve

(27,488)

27,488

-

4,563,817

27,488

4,591,305

Surplus from Club operations

192,657

-

192,657

Deficit from Kendal Binns junior foundation

(2,028)

-

(2,028)

Transfer to Kendal Binns junior foundation reserve

2,028

(2,028)

-

4,756,474

25,460

4,781,934

Balance at 1 July 2014

Balance at 30 June 2015

Balance at 30 June 2016

The accompanying Notes form part of these Financial Statements and should be read in conjunction herewith.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

32

Cash Flow Statement For the year ended 30 June 2016 Note

2016

2015

$

$

Receipts from members / customers

6,849,971

7,671,575

Payments to suppliers and employees

(6,479,280)

(6,258,145)

-

-

Cash flows from operating activities

Interest paid Interest and finance fees received

107,857

96,950

478,548

1,510,380

-

14,768

Payment for property, plant and equipment

(700,499)

(518,095)

Net cash used in investing activities

(700,499)

(503,327)

Cash flows from financing activities

-

-

Net cash generated from /(used in) financing activities

-

-

(221,951) 3,764,525

1,007,053 2,757,472

3,542,574

3,764,525

Net cash generated from operating activities

15(b)

Cash flows from investing activities Proceeds from sale of property, plant & equipment

Net increase / (decrease) in cash held Cash at beginning of the financial year Cash at the end of the financial year

15(a)

The accompanying Notes form part of this Statement and should be read in conjunction herewith.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

33

Notes to the financial statements For the year ended 30 June 2016 The financial report is for Pennant Hills Golf Club Limited as an individual company, incorporated and domiciled in Australia. Pennant Hills Golf Club Limited is a company limited by guarantee.

Note 1: Statement of significant accounting policies Nature of operations Pennant Hills Golf Club’s principal activity was to provide golf facilities to members.

Basis of preparation The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, Australian Accounting Interpretations, the Corporation Act 2001 and the Registered Clubs Amendment Act 2006. Pennant Hills Golf Club Limited is a not-for-profit entity for the purpose of preparing financial statements.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions.

Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The financial report has been prepared using the measurement bases specified by the Australian Accounting Standards for each type of asset, liability, income and expense. The measurement bases are described in the accounting policies below.

The financial report was authorised for issue on the 29th August 2016 by the board of directors.

Accounting policies (a)

Income tax No provision for income tax has been raised as the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

(b)

Inventories Inventories are measured and carried at the lower of cost and current replacement cost.

(c)

Property, plant and equipment

(i)

Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.

Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of selfconstructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the assets to a working condition for their intended use, the costs of dismantling and removing the items and restoring the site on which they are located, and capitalised borrowing costs. Cost also may include transfers from other comprehensive income of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment.

Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

34

Notes to the financial statements For the year ended 30 June 2016 Note 1: Statement of significant accounting policies (continued) (c) Property, plant and equipment (continued) Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within other income in profit or loss. When revalued assets are sold, the amounts included in the revaluation reserve are transferred to retained earnings. (ii) Subsequent costs The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Company, and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment, since this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Land is not depreciated.

The estimated useful lives for the current and comparative periods are as follows: Buildings 40 years Plant and equipment 3 - 20 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

(d)

Leases Where the Company is a lessee lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

(e)

Impairment of assets At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

35

Notes to the financial statements For the year ended 30 June 2016 Note 1: Statement of significant accounting policies (continued) (f)

Employee benefits Short-term employee benefits Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. Short-term employee benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits The Company’s liabilities for long service leave are included in other long term benefits as they are not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render the related service. They are measured at the present value of the expected future payments to be made to employees.

The expected future payments incorporate anticipated future wage and salary levels, experience of employee departures and periods of service, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the timing of the estimated future cash outflows. Any re-measurements arising from experience adjustments and changes in assumptions are recognised in profit or loss in the periods in which the changes occur.

The Company presents employee benefit obligations as current liabilities in the statement of financial position if the Company does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting period, irrespective of when the actual settlement is expected to take place.

(g)

Provisions, contingent liabilities and contingent assets Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is recognised.

(h)

Revenue and other income Revenues are recognised at fair value of the consideration received.

Revenue from sales of goods comprises revenue earned from the provision of food and beverage facilities, and the sale of golf equipment. Revenue is recognised when the goods are provided.

Revenue from rendering services comprises revenue services to Members and other patrons of the Company.

Revenue from interest is recognised using the effective interest rates method, which for floating rate …… financial assets is the rate inherent in the investment.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

36

Note 1: Statement of significant accounting policies (continued) (h)

Revenue and other income (continued) Revenue from rental income relating to the telecommunications tower lease is recorded on a straight line basis over the term of the lease.

Kendal Binns fund donations and contributions made are credited to the Kendal Binns fund in the year in which they are made.

All revenue is stated net of the amount of goods and services tax (GST).

(i)

Borrowing costs Borrowing costs other than those that relate to the acquisition of qualifying assets are recognised in income in the period in which they are incurred.

(j)

Goods and services tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST).

Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the Cash Flow Statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(k)

Subscriptions in advance The Subscriptions in advance balance in Note 12 consists of 2017 membership subscriptions received prior to 30 June.

(l)

Deferred income The liability for deferred income is the unutilised amounts of telecommunications tower rental received on the condition that specified conditions are fulfilled. Where the amount received is in respect of rental is to be provided over a period that exceeds twelve (12) months after the reporting date, the liability is discounted and presented as non-current.

(m) Comparative figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(n)

Critical accounting estimates and judgments The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company.

The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may be indicative of impairment triggers. Recoverable amounts of relevant assets are assessed using value-in-use calculations which incorporate various key assumptions.

During the prior reporting period, the Company changed the discount rate used in measuring its other long term employee benefits (annual leave and long service leave) from the Australian government bond rate to the high quality corporate bond rate. This change was necessitated by developments in the Australian business environment that confirmed there is a sufficiently observable, deep and liquid market in high quality Australian corporate bonds to satisfy the requirements in AASB 119 Employee Benefits. The Company has concluded that this change is a change in accounting estimates in accordance with AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

37

Notes to the financial statements For the year ended 30 June 2016 Note 1: Statement of significant accounting policies (continued) (o)

Financial instruments Financial assets and liabilities are recognised when the Company becomes a party to the contractual provisions of the financial instrument, and are initially measured at fair value adjusted by transaction costs.

Financial assets are derecognised when the contractual rights to cash flows from the financial asset expire, or when the financial asset and all subsequent risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged cancelled or expires.

Classification and measurement of financial assets For the purposes of subsequent measurement financial assets of the Company are classified as loans and receivables. All financial assets are subject to review for impairment at least at each reporting date to determine if there is objective evidence that a financial asset is impaired. All income and expenses relating to financial assets that are recognised in profit and loss are presented within finance costs or finance income except for impairment of trade receivables which is presented within other expenses.

Loans and receivables are non-derivative financial assets with fixed or determinable payments. After initial recognition these are measured at amortised cost using the effective interest method, less provision for impairment. Discounting is omitted where the effect is immaterial. The Company’s trade and other receivables fall into this category of financial instruments.

Classification and measurement of financial liabilities The Company’s financial liabilities include trade and other payables.

Financial liabilities are measured subsequently at amortised cost using the effective interest method.

All interest related charges, and if applicable, changes in an instruments fair value that are reported in profit and loss are included within finance costs or finance income.

(p)

New accounting standards for application in future periods A number of new and revised standards are effective for annual periods beginning on or after 1 January 2015. Information on these new standards is presented below.

AASB 15: Revenue from Contracts with Customers (applicable to annual reporting period beginning on or after 1 January 2018, as deferred by AASB 2015-8: Amendments to Australian Accounting Standards – Effective Date of AASB 15).

When effective, this Standard will replace the current accounting requirements applicable to revenue with a single, principles-based model. Except for a limited number of exceptions, including leases, the new revenue model in AASB 15 will apply to all contracts with customers as well as non-monetary exchanges between entities in the same line of business to facilitate sales to customers and potential customers.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

38

Notes to the financial statements For the year ended 30 June 2016 Note 1: Statement of significant accounting policies (continued) (p)

New accounting standards for application in future periods (continued) The core principle of the Standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. To achieve this objective, AASB 15 provides the following five-step process: -

Identify the contract(s) with a customer; Identify the performance obligations in the contract(s); Determine the transaction price; Allocate the transaction price to the performance obligations in the contract(s); and Recognise revenue when (or as) the performance obligations are satisfied.

The transitional provisions of this Standard permit an entity to either: restate the contracts that existed in each prior period presented per AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors (subject to certain practical expedients in AASB 15); or recognise the cumulative effect of retrospective application of incomplete contracts on the date of initial application. There are also enhanced disclosure requirements regarding revenue.

Although the directors anticipate that the adoption of AASB 15 may have an impact on the Company’s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

AASB 16: Leases (applicable to annual reporting period beginning on or after 1 January 2019).

When effective this Standard will replace the current accounting requirements applicable to leases in AASB 117: Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases.

The main changes introduced by the new Standard include: -

Recognition of a right-to-use asset and liability for all leases (excluding short-term leases with less than 12 months of tenure and leases relating to low-value assets); Depreciation of right-to-use assets in line with AASB 116: Property, Plant and Equipment in profit or loss and unwinding of the liability in principal and interest components; Variable lease payments that depend on an index or a rate are included in the initial measurement of the lease liability using the index or rate at the commencement date; By applying a practical expedient, a lessee is permitted to elect not to separate non-lease components and instead account for all components as a lease; and Additional disclosure requirements.

The transitional provisions of AASB 16 allow a lessee to either retrospectively apply the Standard to comparatives in line with AASB 108 or recognise the cumulative effect of retrospective application as an adjustment to opening equity on the date of initial application.

Although the directors anticipate that the adoption of AASB 16 may impact the Company’s financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

39

Notes to the financial statements For the year ended 30 June 2016 2016 $

2015 $

Revenue from bar

730,377

730,039

Revenue from catering

948,490

951,094

Revenue from pro shop

498,861

460,743

2,177,728

2,141,876

367,523

297,077

3,750

4,071

Visitor & corporate fees

264,124

251,817

Income from room and equipment hire

61,916

60,263

Hire of carts

139,334

120,039

Pro shop lessons and equipment, storage, hire and repairs

161,294

146,170

997,941

879,437

Note 2: Revenues / expenses from ordinary activities Revenue from sales of goods

Revenue from rendering of services Competition fees & member playing fees Locker rentals

Other revenues from ordinary activities Entrance fees

159,637

75,006

Telecommunications tower rent

47,754

54,033

2,726,076

2,693,007

Unredeemed levy vouchers

19,983

33,765

Interest and finance fees received

110,674

100,510

Other revenue

18,779

62,197

3,082,903

3,018,518

6,258,572

6,039,831

-

3,322

Bar cost of goods sold

265,062

266,654

Catering cost of goods sold

379,832

386,370

Pro shop merchandise cost of goods sold

322,210

313,273

Pro shop repair services cost of goods sold

32,725

15,284

999,829

981,581

Members’ subscriptions

Total revenue

Gain on disposal of property, plant and equipment Raw materials & consumables used

Pennant Hills Golf Club Ltd ABN 12 000 037 856

40

Notes to the financial statements For the year ended 30 June 2016 2016

2015

$

$

Golf ball discounts

1,541

-

Glove discounts

1,466

-

Visitor passes

59,595

-

Free lessons

12,995

-

75,597

-

Bar & catering wages and superannuation

732,278

729,449

Pro shop wages, teaching commissions and superannuation

331,723

311,611

Course wages and superannuation

892,183

857,106

Golf wages and superannuation

116,273

54,971

House wages and superannuation

137,443

111,599

Admin wages, superannuation and long service leave

557,989

474,885

2,767,889

2,539,621

Building

96,770

92,613

Plant, equipment & course irrigation system

348,281

461,606

Total depreciation and amortisation

445,051

554,219

-

95,671

Bar & catering

142,066

147,004

Pro shop

30,732

31,792

Carts

62,679

63,676

Golf

195,455

187,065

Course

680,670

636,534

House

323,699

314,069

Administration

342,248

352,136

1,777,549

1,732,276

Note 2: Revenues / expenses from ordinary activities (continued) Member benefits expense

Employee benefits expense

Depreciation and amortisation expenses Depreciation of:

Impairment of assets Write down in clubhouse development costs Other expenses

Pennant Hills Golf Club Ltd ABN 12 000 037 856

41

Notes to the financial statements For the year ended 30 June 2016 2016

2015

$

$

18,500 -

18,000 500

Trade receivables

24,631

100,233

Provision for impairment of receivables

(1,760)

(5,461)

22,871

94,772

12,039

16,862

-

-

12,039

16,862

34,910

111,634

Note 3: Auditor’s remuneration Remuneration of the auditor for: - Auditing the accounts - Taxation services provided by related practice of auditor

Note 4: Trade and other receivables

Deferred entrance fees Provision for un-financials

Current trade receivables are non-interest bearing. A provision for impairment is recognised when there is objective evidence that an individual trade receivable is impaired. These amounts have been included in the other expenses item.

(ii) Provision for impairment of receivables Opening balance

Charge for the year

Amounts written off

Closing balance

$

$

$

$

Deferred entrance fees

8,615

-

(8,615)

-

Trade receivables

3,568

5,344

(3,451)

5,461

Opening balance

Charge for the year

Amounts written off

Closing balance

$

$

$

$

-

-

-

-

5,461

-

(3,701)

1,760

1-Jul-14

1-Jul-15 Deferred entrance fees Trade receivables

Pennant Hills Golf Club Ltd ABN 12 000 037 856

30-Jun-15

30-Jun-16

42

Notes to the financial statements For the year ended 30 June 2016 2016

2015

$

$

166,486

144,494

61,441

44,776

Note 5: Inventories Finished goods – at cost

Note 6: Other assets Prepayments

Note 7: Core property, plant & equipment Freehold land

Buildings

Plant and equipment

$

$

$

Capital work in progress $

9,500

2,114,289

2,041,103

178,424

Additions at cost

-

-

469,663

61,782

531,445

Disposals

-

-

(11,446)

-

(11,446)

Transfers in

-

-

32,629

(32,629)

-

Depreciation expense

-

(97,306)

(456,913)

-

(554,219)

Impairment write down

-

-

-

(95,671)

(95,671)

9,500

2,016,983

2,075,036

111,906

4,213,425

Additions at cost

-

389,880

304,547

118,342

812,769

Disposals

-

-

-

-

-

Transfers

-

-

-

-

-

Depreciation expense

-

(96,770)

(348,281)

-

(445,051)

Impairment write down

-

-

-

-

-

9,500

2,310,093

2,031,302

230,248

4,581,143

Balance at 1 July 2014

Carrying amount at 30 June 2015

Carrying amount at 30 June 2016

Total $ 4,343,316

In accordance with Section 41J of the Registered Clubs Amendment Act 2006 the Directors have determined that all freehold land and buildings held by the Club forms part of the Club’s premises and the facilities provided by the Club are for the use of its members and is therefore core property.

The Valuer General land value at 1/7/15 was $5.5 million Refer to Note 11 for details of security over property, plant and equipment.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

43

Notes to the financial statements For the year ended 30 June 2016 2016

2015

$

$

Trade payables

364,926

198,902

Sundry payables and accrued expenses

205,316

179,092

Trade and other payables

570,242

377,994

Employee benefits – annual leave

122,602

124,559

Employee benefits – long service leave

38,888

46,544

161,490

171,103

48,131

26,891

Note 8: Financial liabilities at amortised cost

Note 9: Provisions Current Short term employee benefits

Non-Current Long Term Employee benefits Employee benefits - long service leave

A provision has been recognised for employee benefits relating to long service leave for employees. In calculating the present value of future cash flows of long service leave, the probability of long service leave being taken is based upon historical data. The measurement and recognition criteria for employee benefits have been included in Note 1 (f)

Note 10: Deferred income 2016

2015

$

$

47,130

46,829

812,423

849,223

Current Deferred income – communications tower Non-Current Deferred income – communications tower

In the prior year the Company leased the telecommunications tower site for 25 years. Rental for the 25 years has been received up front. In determining the correct treatment for the transaction the Company has taken a view that the monies received are in the nature of a receipt of future rental income. Consistent with the Company’s treatment of other deferred income received in advance the amount received is being released to revenue on a straight line basis over the full term of the lease period. Deferred income received which will not be released in the next year is treated as long term deferred income.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Notes to the financial statements For the year ended 30 June 2016 Note 11: Borrowings Security The Company’s banker continues to hold registered first mortgages and floating charges over the assets.and uncalled capital of the Company.

Note 12: Other liabilities 2016

2015

$

$

1,700,592

1,943,799

Food and beverage levy in advance

179,313

206,735

Functions in advance

42,200

20,646

Unredeemed vouchers

11,384

8,514

Ex Servicemen donation to memorial gates

11,500

11,500

Other

20,215

24,315

1,965,204

2,215,509

Current Subscriptions in advance

Note 13: Kendal Binns junior foundation reserve The Company has established a foundation for the development of promising junior members. The monies raised by way of donations from members and contributions from Club activities are held specifically for the foundation. The foundation is administered by a committee comprising four members of the Company. The foundation funds are solely for the benefit of nominated junior members and are not available for the general operations of the Company. Unspent monies at the close of the financial year being the opening position for the year plus the contributions and less expenditure on junior members for the year are represented in the Kendal Binns foundation reserve in the Members funds.

The underlying cash is held in a separate bank account and recorded in Cash and cash equivalents.

During the year net proceeds / (utilisation) of contributions of ($2,028) (2015: $27,488) were transferred into / (from) the reserve.

2016

2015

$

$

Opening balance of Kendal Binns junior foundation reserve

27,488

-

Contribution / (utilisation) during the year

(2,028)

27,488

Closing balance of Kendal Binns junior foundation reserve

25,460

27,488

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Notes to the financial statements For the year ended 30 June 2016

Note 14: Related parties (a) Key management personnel Key management personnel of the Company are those persons having authority and responsibility for planning, directing and controlling activities of the Club.

$

Post employment benefit $

518,537

-

518,537

663,619

-

663,619

Short-term benefits

Total $

2015 Total compensation 2016 Total compensation

(b) Transactions with related parties The company incurred no transactions with related parties.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Notes to the financial statements For the year ended 30 June 2016 Note 15: Notes to the statement of cash flows a) Reconciliation of cash For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet 2016

2015

$

$

3,542,574

3,764,525

190,629

167,273

-

(3,322)

Depreciation

445,051

554,219

Provision for employee benefits

11,628

(43,095)

Write off of capital improvements

-

95,671

647,308

770,746

(Increase)/decrease in receivables

76,724

132,552

(Increase)/decrease in inventories

(21,992)

(9,641)

(Increase)/decrease in other assets

(16,665)

58,789

Increase/(decrease) in accounts payable

79,977

(92,548)

Increase/(decrease) in other liabilities

(286,804)

650,482

Cash flow from operations

478,548

1,510,380

Cash assets

b) Reconciliation of cash flow from operations . with profit after income tax Profit/(loss) after income tax

.

Add/(less) items classified as investing/ financing activities: Profit on sale of non-current assets Add/(less) non-cash items:

Net cash provided by operating activities before change in assets & liabilities Change in assets and liabilities

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Notes to the financial statements For the year ended 30 June 2016 Note 16: Fair value measurement Net fair values Fair value estimation The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the balance sheet. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below.

2015

2016 Footnote

Net carrying value

Net fair value

Net carrying value

Net fair

$

$

$

$

value

Financial assets Cash and cash equivalents

(i)

3,542,574

3,542,574

3,764,525

3,764,525

Trade and other receivables

(i)

34,910

34,910

111,634

111,634

3,577,484

3,577,484

3,876,159

3,876,159

570,242

570,242

377,994

377,994

570,242

570,242

377,994

377,994

Total financial assets Financial liabilities Trade and other payables Total financial liabilities

(i)

The fair values disclosed in the above table have been determined based on the following methodologies: (i) Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in nature whose carrying value is equivalent to fair value. Trade and other payables exclude amounts provided for relating to annual leave and deferred income which is not considered a financial instrument.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Notes to the financial statements For the year ended 30 June 2016 Note 17: Segment reporting The Company operates predominantly in the hospitality, sporting and entertainment industry.

The Company’s operations and customers are located predominantly in Sydney, New South Wales. The Company provides golfing facilities, food, beverage and other entertainment facilities to Members and guests.

Note 18: Company details The Company is incorporated and domiciled in Australia as a company limited by guarantee. In accordance with the Constitution of the Company, every Member of the Company undertakes to contribute an amount limited to $2.00 per Member in the event of the winding up of the Company during the time that they are a Member or within one year thereafter. At 30 June 2016 there were 1,645 members.

The registered office and principal place of the Company is: Copeland Road, Beecroft NSW 2119

Note 19: Contingent liabilities There are no contingent liabilities that have been incurred by the Company in relation to 2016 or 2015.

Note 20: Events after the balance sheet date There have been no significant events since the end of the financial year up to the date of this report.

The financial report was authorised for issue on 29th day of August 2016 by the Board of Directors.

Note 21: Reporting requirements - Registered Clubs Act 1976 The Club maintains a register in accordance with the Registered Clubs Act 1976. This register is available for members to view on appointment at the front office.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

49

.

Summarised Income Statement For the year ended 30 June 2016 2016

2015

2,726,076

2,693,007

Bar and catering profits (see below)

226,926

213,539

Pro shop loss (see below)

(5,015)

(25,510)

Members competition fees

338,781

297,077

Member green fees

28,742

-

Corporate green fees

147,656

159,305

Visitors fees

116,468

92,511

Income Subscriptions

Locker fees

3,750

4,071

Interest received

110,674

100,510

Other revenue

13,398 3,707,456

63,900 3,598,410

NSWGA and WGNSW affiliation fees

58,290

57,802

Representative players expenses

26,214

27,517

Talent development

6,465

11,585

Trophies and prize vouchers

63,038

57,319

Member benefit expense – visitor passes

59,595

-

Salaries and on costs

123,031

60,622

Expenses Golf

Fixture book, bag tags and score cards

20,374

6,475

357,007

221,320

Salaries and on costs

943,139

905,389

Staff training, catering and uniform costs

25,593

26,578

Course

Equipment repairs and maintenance

50,770

42,305

Course maintenance materials

206,389

217,783

Water usage

11,500

7,263

Fuel and energy costs

49,046

52,348

Depreciation

143,553

186,382

Other course expenses

105,409

100,725

1,535,399

1,538,773

46,274

11,364

1,581,673

1,550,137

Operating costs

134,733

129,885

Depreciation

130,382

207,808

265,115

337,693

Improvement projects Water reclamation plant

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Summarised Income Statement For the year ended 30 June 2016 2016

2015

Catering entertainment and social costs

60,672

75,356

Building maintenance costs

122,714

120,091

Cleaning and laundry costs

124,298

104,166

Depreciation

126,956

119,212

Salaries and on costs

145,758

117,653

Other house costs

31,903

39,982

612,301

576,460

Salaries & on costs

585,502

494,598

Interest and finance costs

25,147

16,320

Depreciation of office equipment

36,333

24,735

Insurance

61,739

57,317

Postage and telephone

31,939

28,534

Audit and accounting fees

18,480

17,096

Computer expenses

63,143

70,700

Printing and stationery

35,153

35,315

Other expenses

68,640

95,533

926,076

840,148

3,742,172

3,525,758

(34,716)

72,652

Telecommunications tower rent

47,754

54,033

Entrance fees

159,636

75,006

Forfeited F&B levies

19,983

33,765

-

(95,671)

Total non-operating revenue and (expense)

227,373

67,133

Surplus from Club operations

192,657

139,785

House

Administration

Total expenses

Operating surplus / (deficit) for the year

Non-operating revenue and (expense)

Write off clubhouse redevelopment costs

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Summarised Income Statement For the year ended 30 June 2016 2016

2015

Sales

1,678,869

1,681,133

Cost of goods sold

(644,896)

(653,024)

Gross margin

1,033,973

1,028,109

62%

61%

Salaries and on costs

(773,888)

(768,088)

Other direct expenses

(100,455)

(108,365)

(874,343)

(876,453)

Room and equipment hire and other function revenue

67,296

61,883

Trading profit as reported above

226,926

213,539

Merchandise sales

498,861

460,743

Cart hire revenue

139,334

120,039

Services revenue

161,294

146,170

Pro shop income

799,489

726,952

Cost of goods sold – merchandise

(322,210)

(313,273)

Cart Hire running costs

(62,679)

(63,939)

Services costs including teaching commissions

(66,960)

(42,979)

Member benefit expense – balls, gloves and lessons

(16,002)

-

Cost of goods and services

(467,851)

(420,191)

Gross margin

331,638

306,761

41%

42%

Salaries and on costs

(317,624)

(300,148)

Other direct expenses and depreciation

(19,029)

(32,123)

(336,653)

(332,271)

(5,015)

(25,510)

Bar and catering trading statement

Margin % Less:

Pro shop trading statement

Margin % Less:

Trading loss as reported above

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