PHGC Annual Report 2018-2019

Pennant Hills Golf Club Limited

A N N U A L R E P O RT 2 0 1 8 / 2 0 1 9

ABN 12 000 037 856

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

Mr. Stephen Walker

Vice-President:

Vacant

Captain:

Mr. Chris Pragnell

Hon. Treasurer:

Mr. David Leach

Directors:

Mrs. Margie Dearlove, Mrs. Anne Goodrick, Mr. Ross Howarth, Mr. Michael Rowan, Mr. Phillip Stanton & Mr. Greg Winters.

COMMITTEES Planning & Finance:

David Leach (Chairperson), Anne Goodrick, Chris Pragnell, Michael Rowan & Steve Walker

Course & Playing:

Chris Pragnell (Chairperson), Chris Allen, Anne Goodrick, Sally Moffat, Greg Winters & Steve Walker

Membership:

Michael Rowan (Chairperson), Margie Dearlove, David Leach, Phil Stanton & Steve Walker

Clubhouse:

Ross Howarth (Chairperson), Margie Dearlove, Ann Elsley, Susie Nicholas, Phil Stanton, Greg Winters & Steve Walker

Clubhouse Project:

Ross Howarth (Chairperson), Garrett Dwyer, Anne Goodrick, Robin Hosking, David Leach, Phillip Stanton, Rob Stevenson & Steve Walker

Ladies Committee:

Sue Nicholas (President), Sally Moffat (Captain), Sandra Murphy (Secretary), Sally Gooley (Competition Manager), Jenny Harvey, Janet Shand, Lyn Toohey & Judy Trickett

Life Members:

Men: Tony Gresham Ladies: Mollie Sutherland

Delegate to Golf NSW:

Mr. Chris Allen

Auditor:

BDH Audit and Assurance Pty Ltd

General Manager:

Mr. Barnaby Sumner

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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PRESIDENT'S REPORT We have seen some significant changes in personnel this year, and thanks are due to many to acknowledge their efforts.

A measure of an outstanding Club has always been the way we recognise contribution. Allan Watson in last year’s Annual Report talked about other retiring directors but, characteristically, said nothing about himself.

Allan made a significant contribution to this Club over some years. He joined the Board as Treasurer 2011, and took on the job as President 2014 to 2018. He worked tirelessly on the Clubhouse project, and after stepping down as President last year has continued to assist by preparing the Club’s claim to recover losses resulting from the failure in early detection of asbestos in the Clubhouse roof. That work is ongoing. We thank Allan for his unstinting efforts on behalf of the Club.

Chris Allen retired as a director in May this year. It is difficult to do justice in this report to the contribution Chris has made to the Club over many years, and to golf in New South Wales in general. He served as a PHGC director for nearly 10 years in all, including 5 years as Captain, 2 as Treasurer, and most recently as Vice President. Even after retirement from the Board, he has continued to serve on the Course & Playing Committee, and of course the Kendal Binns Foundation. He is a highly accredited rules official and referee, and gives countless hours of his time refereeing Club and external events. He was a director of the New South Wales Golf Association for 8 years, and President of its successor Golf NSW for a further 5 years.

He was made a Life Member of Golf NSW in 2016. He is a former board member of the Jack Newton Foundation, and member of the GA Rules Committee. The list goes on and on, and we owe him a great debt of gratitude. On behalf of the members of this Club, and golfers throughout the State, thank you Chris.

Three other directors are not standing for re-election this year, Ross Howarth (9yrs), Phil Stanton (4yrs) and Anne Goodrick (3yrs). We thank them all for their contributions to the Board. Ross has been central to the Clubhouse Project from go to whoa, and his ongoing commitment has been important to the successful completion of the project. He very generously agreed also to continue as Chair of House despite heavy demands on his time this year.

Former General Manager Robin Taylor moved on to bigger and better things at the Wyong Race Club in March, and we wish him well in his new role.

It has been a baptism of fire for new General Manager Barnaby Sumner. He has already been instrumental in lifting the quality of our F&B, and driving membership recruitment, as well as overseeing our move into the new Clubhouse, quite apart from the other myriad duties his role encompasses.

Many thanks to Barnaby, Craig, Chef Peter, Kristen and the rest of Barnaby’s team, indeed to all our Clubhouse staff for the outstanding way they have performed their roles in the difficult physical environment of a Clubhouse under reconstruction around their ears. Neil Rolfe, Rachel and the pro-shop staff have provided excellent service, and Richard Kirkby and the grounds staff have done their usual sterling job on the course.

Thank you to Ladies President Susie Nicholas and Ladies Captain Sally Moffat for your ongoing support and co-operation.

The 2018/19 financial year was exceptional given the disruption caused by operating out of a building site most of the year, with minimal capacity for member and external functions, corporate golf and bar operations generally. All this had a substantial impact on trading. It is therefore not easy to draw meaningful conclusions from the numbers.

Although we had an overall surplus of $354K due mainly to the levy, the financial performance this year was as expected well below par, notwithstanding that this is in no way a representative year.

A useful way to analyse our financial performance is to look at earnings before non-operating income.

Excluding the 2018 levy, joining fees, forfeited bar levies, telecommunications tower rent and some redundant asset write-offs, from an operating perspective there was a loss of $498K, predictable in the circumstances. If that is our worst year, and it should be, things are looking reasonably promising.

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We did manage to contain operating costs reasonably well, with course costs rising by $67K to $1.95m (including $38K kicking off our bunker refurbishment program). Administration costs remained relatively stable. Our F&B revenue and profit suffered substantially. The overall accounting result including the levy was a deficit of $92.5K. The great news for the Club is that we now have secured the banking facilities we need to support our operations through next year and beyond.

With our financing in place, keen interest in membership and our new Clubhouse operational, the outlook for the Club is excellent. I ask members to spread the news! Read more in Treasurer David Leach’s report.

As to the year generally, we took over Clubhouse Stage 1 (the new locker rooms, bar and terrace area) in February, the balance of the main bar and Devlins room in June, with completion of the function areas and Founders bar on 10 July. When I took over as President, I said my main focus had to be seeing the Clubhouse completed as close to time and as close to budget as was then possible. The failure of our experts to identify friable asbestos cost us dearly, with consequent indirect costs adding to the $690K direct decontamination cost, but we now have an excellent clubhouse, albeit one with a hefty price-tag.

We may be able to recover some of the consequential losses, and Allan Watson is finalising a recovery brief.

The total cost will be approx. $7.3M, including approx. $130K for furniture, and $350K in unbudgeted but necessary items such as landscaping, honour boards, AV transfer and update, communications, Terrace barbecue facilities and external lighting at the functions entrance. Inclusion of demolition of the cottage, resulting additional car park work and the Beecroft Terrace renovation accounted for a little over $100K of this. The original project contingency was consumed during Stage 1, and we allocated a separate $185K for Stage 2. Stage 2 was completed ahead of schedule and within the contingency. Functions resumed in July, but it will take a little time to build external bookings. Some additional expenditure of around $70K may be needed as and when conditions allow.

The Club thanks Rob Stevenson for his untiring efforts on the Clubhouse Project, and Garrett Dwyer who agreed to step in for Stage 2 as shadow project manager and who made a discernible difference. Director Phil Stanton’s architectural and general input throughout all stages of the project has also been invaluable.

Thanks are due also to those members who served on the Clubhouse Project Committee, and many others who assisted with various aspects including Greg Wicks, Manny Tabone and David Cuneen.

On membership, as I have said throughout, significant change to membership structures is extraordinarily difficult to get right. The fact is that the membership changes made in 2015 weren’t working for the Club.

Significant further change simply had to be made, and quickly. Compared to our competitor clubs, our membership subscription income reached unsustainable lows last year, and the gap was widening.

Every member of this Club is highly valued whether they be 2Day, 6Day, 7Day or any other category. But the cost structures of a Club like ours simply do not support the level of discounting in place before the April changes, and the relativities weren’t right.

I am happy to say that the changes your Board made on 1 April, lifting 6Day and 2Day rates relative to 7Day and freezing and capping 6Day2 and 2Day for the time being, were successful in stabilising our underlying subscription income. 37 members transferred back up to 7Day, and only around 12 members resigned (mainly from 6Day) because of the changes. Even so, total membership numbers in the key playing categories of 7, 6 and 2 Day have gone from 941 at 31 December 2018 to 847 (now 7Day, 6Day 1, 6Day 2 and 2 Day) at 30 Jun 2019. We will continue to encourage senior older players to forego their discounts if they are in a position to do so.

The number of recent new entrants into 7Day is promising. Attrition from Deferred and Flexible categories continues to be unsatisfactorily high, and we need to do better.

The structural changes will generate a benefit of around $350K year on year compared to doing nothing, and place us well for the future. We will consider the need or otherwise to make further adjustments early in 2020.

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Critically, we need to maintain and increase our membership base. All members are asked to assist in this by nominating friends, relatives and business colleagues as new members, and ensuring they experience the best of our Club when they do.

With the Clubhouse project now complete, we are in a position to drive operating profitability. Members should know that our current policy setting is to at least break even and preferably make a modest profit on member F&B, but importantly not to make a loss on this aspect of our operations, and to look for profit on external functions. Now we don’t always get that right, but that’s our aim.

General Manger Barnaby Sumner has already made changes to the way we price and target external functions, and the Board is in the process of signing off on a business plan for external function business.

Once we are through an initial period as we build bookings, we expect a much better bottom line through calendar 2020.

We can now sharpen our prime focus on the lifeblood of our Club, the course. The course has already benefited from the Course Development Fund sourced from competition and social golf fees. The bunker re-furbishment program is well under way, paid for substantially from this Fund. The schedule is to complete it by July 2020, and we are well ahead of schedule. Our nursery green (part insurance, part trial), planted with 2 different strains of creeping bent grasses, will be well underway by the AGM. Richard Kirkby’s team is also putting a lot of effort into keeping the course groomed to the highest standards. Read more in Captain Chris Pragnell’s report.

The Club will be looking at some significant capital expenditure requirements, principally course related, over the next 5 years or so. The Board continues to assess capital expenditure requirements over that period.

Getting water off the M2/M1 tunnel to supplement our WRP water is a little more problematic. We start a long way behind the play, and even if we succeed in reaching a commercial arrangement and get all necessary environmental approvals, the cost of bringing water across the course and in particular attaining a useful storage facility may be prohibitive (estimated at around $2M). It is highly desirable, but perhaps not essential This will need to be financed through PHGC Foundation and not directly by the Club. Our efforts will continue.

In the longer term, the plan is to rebuild all our greens and bunkers. Ideally, we would like to have a plan in place within the next two years to achieve that. Planning for the Security Ex-Service Gates is under way, with design assistance from Phil Stanton and David Cuneen. The re-launched PHGC Foundation will play a key role in this and development of an indoor practice/teaching facility, and other major course projects.

As to the Board, with nominations now closed and no election necessary, it is clear that Sue Fabian, Graeme Martin & Clayton Rowston will be elected as new Directors at the conclusion of the AGM. We congratulate them on their election and look forward to their participation.

We have an outstanding clubhouse, with personnel to match, and the course is improving significantly. It all augurs well for the ongoing success of our Club. My hope is to make next year’s report shorter, and the bottom line correspondingly larger.

Steve Walker

President

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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TREASURER’S REPORT Summary In the year ended 30 June 2019, the Club recorded a Surplus of $353,607* compared to previous year of $63,439.

The result for the year can be summarised as Total Revenue $6.365 million* (decrease on previous year, $112,649) and Total Costs and Expenses $6.008 million (decrease on previous year, $412,701). *Both the Surplus and Total Revenue include the Clubhouse Upgrade Levy of $727,102.

The Clubhouse Project The main issue affecting the financial results for the year ending 30 June 2019 was the Clubhouse Project.

This Project, by far the largest capital expenditure program ever undertaken by the Club, had a major impact on revenue, operating income, and cash flow; it also reshaped the balance sheet.

When the Project was planned the expectation was that the maximum bank borrowings would be $3 million and a Bank Facility was arranged for that sum. Bank borrowings did not exceed this level in the year under review.

Total Project cost was originally anticipated to be $5.43 million as the Members were advised in September 2016. Members were further advised in May 2018 that costs had escalated to $6.474 million including asbestos decontamination costs of $554,000 and additional costs associated with decontamination of $444,000. The capital levy on members at 30 June 2018 raised $727,102.

The total Project cost described above included certain items which were subsequently removed from the construction contract (in particular the indoor practice facility) and excluded certain items which the Board subsequently committed to (in particular the Beecroft Terrace and demolition of the Cottage to provide additional parking).

As at 30 June 2019 total expenditure on the Project was $6.546 million and the final total Project cost is estimated to be approximately $7.3million. These figures are struck before taking into account any possible recovery of the additional costs associated with decontamination mentioned above. The final direct cost of removing the asbestos was $688,907.

The main Project was completed in July 2019 with Cottage demolition and the Beecroft Terrace to be completed in the year ending 30 June 2020.

The National Australia Bank (NAB) has been kept regularly informed of progress on the Project and has been consistently supportive. In recent months the $3 million Facility has been renegotiated. The Facility has been increased to $3.85 million. The new Facility will reduce to $2.35 million in stages between 2020 and 2022. Prior to 2022 it will be necessary to arrange appropriate borrowings for the future.

The financial results in more detail All revenue areas of the Club’s operations were adversely affected by the disruption caused by the Project.

This disruption was severely exacerbated by the discovery of asbestos in February 2018, soon after construction commenced.

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The Club reported a surplus of $353,607 for the year but that result includes the cost of writing down redundant Clubhouse assets ($23,529) and the following income: Clubhouse Upgrade Levy

$727,102

Entrance Fees

$80,455

Tower Rent

$48,784

Forfeited Levies

$18,930

The result after adding back these items was a deficit of $498,135.

Depreciation and amortisation amounted to $405,551 leaving a net deficit for the year of $92,584.

As the President says in his Report and as I have explained above, the year ended 30 June 2019 was in no way a representative year.

Revenue from Members Subscriptions Members Subscriptions provided gross revenue of $2.722 million, a decrease of $135,964 on the previous year.

Members are reminded that the “subscription year” now runs from 1 April to 31 March so subscription income in the accounts comprises 9 months at the “old” rate and 3 months at the current rate.

Revenue from Golf and Professional Shop Services Revenue from Golf and Professional Shop services was $925,878 in year ended 30 June 2019 compared with $976,282 in the previous year. These revenues comprise all golf playing fees, cart hire, golf lessons and equipment storage.

Bar and Catering Revenue and expenditure from Bar and Catering activities may be summarised as follows: 2019

2018

$,000

$,000

1,269

1,799

519

707

Margin

59.1%

60.7%

Expenses

849

1,049

Net Surplus/(Deficit)

(99)

43

Sales Revenue Cost of Goods Sold

Whilst revenue declined substantially for the reasons stated above the deficit was contained to within $142,000 of the previous year.

The reduction in margin from 60.7% to 59.1% is largely explained by disruption to both bar services and function activities during construction period.

Expenditure Expenditure was broadly in line with the previous year.

Course expenses were $1.952 million, up by $66,674 on the previous year, however this included $37,725 on the bunker refurbishment program.

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Administration expenses were $1.003 million, an increase of $43,477 on the previous year.

Interest Cost Included in the administration expenses was interest charged on bank borrowings of $47,833 in the year under review compared with no charge in the prior year. The NAB Loan Facility carries a floating rate of interest. The interest rate current at year end was 4.136% p.a. and this rate applies until 22nd October 2019 when it will be reset for 30, 60, 90 or 180 days at the discretion of the borrower. It is fortunate that interest rates are currently low relative to historical rates and that this environment appears likely to persist for some time.

Cash flow from operations Net cash flow from operations, being the net surplus for the year adjusted for non-cash items (mainly depreciation) and excluding the capital levy was negative $83,980. In the prior year the net cash flow from operations was $544,253.

Balance Sheet The balance sheet at 30 June 2019 shows Fixed Assets of $10.306 million including $6.546 million capital work in progress relating to the Clubhouse Project. Bank borrowings at year end were exactly $2 million compared with nil borrowings at previous year end. Cash assets at balance date were $181,402 compared with $2.28 million at 30 June 2018.

Storm Damage The severe storm which struck the Pennant Hills area and in particular the Golf Club on Saturday, 15th December 2018 inflicted significant damage, to the 10th bridge and to the course, from fallen trees. The course was back in a playable condition within three days thanks to the extraordinary efforts of both staff and members. The final claim for damage to property and business interruption is likely to eventually be in excess of $260,000. Thankfully, the Club was well insured. The majority of the costs already incurred have been recovered subject to the deductible of $2,500.

Course Development Fund A Course Development Fund was initiated at the end of calendar 2018. Two dollars is transferred into the fund from all competition and social playing fees and this raises approximately $5,000 per month. By 30 June 2019, $31,762 had been transferred to the Course Development Reserve. The first beneficiary of this fund will be the bunker refurbishment program which is currently well under way.

Conclusion In conclusion I would like to recognise the diligence, and commercial expertise of Craig Usher, Finance Manager who had the burden of inducting yet another Treasurer during the year. I also wish to thank all the members of the Finance & Planning Committee for their support during a difficult year.

David Leach

Honorary Treasurer

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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CAPTAIN’S REPORT The Clubhouse renovation has exceeded expectations and those on the Project Committee deserve our congratulations. They have provided the membership with a comfortable, functional and aesthetically pleasing area to enjoy our post game activities.

We are however first and foremost a golf club. The reason I asked for your support to become Captain is I feel, including my terms as President, that during the past decade a disproportionate amount of energy, time and financial resources have been allocated to the “renovation” at the expense of the course.

In the Club’s constitution. The Objects state “to provide, layout, establish maintain and manage golf courses….”. Sadly, we have fallen behind in the “maintaining’ aspect of the first Object. We cannot overcome a decade of the course being seen as a lower priority, when compared with the Clubhouse. But rectification has begun.

The Bunkers are steadily being refurbished and the majority will be completed by the end July 2020.

The refurbishment will include:  The removal of existing sand  The flushing of lines and drains and completing necessary repairs  The replacement of the matting on the bunker faces  The laying of Geo-Tec fabric on bunker floors  The new sand will be “elite” sourced from Cowra. This is the sand currently used in the greenside bunkers on hole 12 The President in his report has provided a brief overview of the program, so allow me to advise that it is not the Course & Playing Committee’s direction, in the near future, to replace any further fairway bunkers with woodchip.

The storm on December 15, 2018, hit the course hard. Yet, thanks to the magnificent work from Richard Kirkby’s team and our own volunteers led by Greg Winters, the course was open for restricted play the following Wednesday. An unbelievable effort.

It took a further 16 weeks of constant physical endeavor to fully return the course to pre-storm condition. As this report is being written, tenders have closed for the 10th bridge repairs. It requires a braver man than I to predict a) when the repairs may start, or b) when they may be completed. Like all of you I am staggered at the delay and thank you sincerely for your patience.

Celebrating his 25th year as Superintendent of Greens, Richard has experienced one of his toughest years.

The 3rd green was once again badly affected by Magnaportiopsis which is commonly referred to as Summer Patch. The disease is most prevalent:  During hot and humid weather  Where there is excessive moisture  In compacted soils  Where there is poor drainage The problem is known, the cause is known, but the solution is not. Richard has consulted with turf experts, both nationally and internationally, and believes early intervention may be his and our saviour. An area on the 12th carry is being prepared as a “nursery green”. It will be used as plan B should we again be affected by summer patch. Sufficient turf will be laid to resurface the 3rd with “Pure Distinction”, having the same parent material as A1/A4 bent grass, which for the past 20 years have been well proven in the Sydney environment. The irrigation water supply on the course is relatively high in chlorides and this is a consideration when selecting a suitable bent grass for greens replacement. Consequently, the plot will be shared with a planting of “Crystal Blue Link” which has a very good salinity tolerance and again is a derivative of A1/A4 bent grass.

Richard has our confidence, support and thanks for a job well done under extremely difficult circumstances.

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Unfortunately we have lost the service of Spencer Davison after 14 years, Richard’s second in charge.

During his time with the Club he consistently displayed energy, professionalism and commitment in all his duties. Spencer’s departure has given Shaun Bowden the 2IC’s role and to me, it appears an almost seamless transition. Welcome Shaun.

On a troubling note, a course staff member suffered a serious workplace injury, the first major accident in 25 years. It is with hope in our heart’s that we trust Jack Young has a successful return to the Course team.

With the help of John Rogers and input from John Brown, the bare/neglected areas, just off some fairways, greens and paths have been identified & chronicled ready for rectification. We acknowledge our greens need modernizing, the irrigation systems need updating and some of the course machinery has celebrated too many birthdays. But we can still have the drive and focus to ensure the presentation of “the grand old lady” is the best of any of the PACK Cup Clubs.

The winners of the Club’s major trophies are contained elsewhere in this document and on behalf of the President and the Board I congratulate all successful players. I will leave the reporting of our Ladies representative golf, to those with a more appropriate pay scale.

Major Pennants: Managed by Greg Winters and Captained by Andy Richards the team comprised Ben Clapham, Matthew Davidson, Murray Fogarty, Damian Maguire, Gabriel Ormaechea, Andrew Stannard, Tim McMurchie, Lee Mordey, Hamish Murray & Jared Dries. There is a good blend of youth, skill, experience and tenacity in the squad. Once again, the team succeeded in achieving one of their prime objectives, being to remain in Division 1 of this competition.

Eric Apperly: Managed by Jared Dries and Captained by Andy Richards the team comprised Matthew Davidson, Hamish Murray, Tom Davey, Ryan Richards and James Skuodas. The 2018 season was a tough one for our boys coming against the 2016 and 2017 Champions, Pymble and Bonnie Doon. With another years’ experience and that fighting spirit they have developed, season 2019 has the hallmarks of being more than promising.

Master Pennants: Managed by Kell Ferguson the team comprised, Damian Maguire, Lee Mordey, Gabriel Ormaechea, David Edwards, Michael Oakley, David Murray, Bill Bell, Peter Ryan, Andrew Davidson, Neil Gordon, Darren Thompson, Antony De Vires and Rob Bush. The team had its best season so far and made it to the Final 8 of this state-wide competition. Well done gents, a great result.

Mixed Pennants: Managed by Neil Gordon the team/squad comprised Hannah Sneath, Bernadette Winters, Nicki Howlett, Monique Herman De Groot, Susie Wales, Pauline O’Neil, Clare Fraser, Amie Maguire, Sandy Lonergan, Sue Stevenson, Bev Nettle, Greg Parrett, Steve Townsend, Uday Chopra, Greg Winters, Lee Mordey, Peter Barber, Chris Cordony, Peter Fraser, Damian Maguire, Kell Ferguson & Rob Stevenson. After being crowned No.1 in their group, the side made it to the Final, only to be defeated by a very strong RydeParramatta side. Well done to all.

PACK Cup: Managed by Kell Ferguson the team comprised David Edwards, Peter Ryan, Ross Howarth, Greg Winters, Stephen Townsend, Tim Whitney, Andrew Barbour, Stephen Butler, Neil Gordon, Peter Henry, Antony De Vires, Bill Bell, Mike Grogan, Tim Rich, Rob Stevenson & Greg Parrett. Another tough season with a number of close matches determining the result. After losing to Avondale in the season’s last match, we were again awarded the Wallace Toogood Trophy for last place.

PACK Plate: Managed by Graham Dawson the team comprised Andrew Mowat, Sebastian Trouncer, Alex Bennie, Lindsay Casey, Darcy Cluff, Steve Rowe, Bruce Jones, Terry Gilchrist, Vasco de Carvalho. Having come second in 2018, the team was hoping for the ultimate prize in the 2019 season. Sadly two early losses put paid to their winning aspirations. Still equal third is a commendable result.

The Committee thanks goes to the Pro Shop staff for their support over the past 12 months. Ably led by Director of Golf Neil Rolfe there is a new dynamic feeling surrounding golf activities. Andrew Potter is the rock upon which golf operations are based. To Liam and Rachel thank you for your skill and ability to impart Pennant Hills Golf Club Ltd ABN 12 000 037 856

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that skill to members. To Jared, Andy, Max & Olivia, nothing ever seems to be a bother and along with Keith Smith, collectively you make the playing of our game much more enjoyable.

My gratitude to colleagues Anne Goodrick, Sally Moffat, Chris Allen, Steve Walker and Greg Winters for their input and guidance over the year. Thanks most importantly to the members for their friendship and ongoing support.

Chris Pragnell

Captain 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 Club Cup

Winner Ben Clapham Andy Haigh Mark Oppy Peter Illingworth Ian Ritchie Greg Wilson Matthew Davidson Joel Wheatley (Castle Hill) Hamish Murray & Andrew Richards Paul Murphy & Steve Pesavento Andrew Munro Tim Whitney Matthew Davidson Tony Vermeer Ken Rathgen Robert Cornish Mark Oppy Andrew Munro Craig Jack Hannah Sneath & Joe Chehade David Sefton Michael Brown Michael Gilbert Murray Newman Bruce Jones David Edwards Matthew Powell Mal & Norelle Cutler Hannah Sneath & Adam Cordony Stephen & Matt Vile Presidents Ann & Brett Elsley Judy Trickett, Peter Trickett, Sandra Murphy, Paul Murphy

HOUSE REPORT When this House Committee was formed in October last year, we set as our key objective the delivery of a premium level of member services to mirror the premium standard clubhouse under construction at that time. To settle for anything less was regarded as unacceptable.

It was clear that the standard of Food & Beverage service to our members had been lacking in consistency and quality for some time. In order to achieve our objective, we set the core elements as:  

A first-class head chef and support staff A new and experienced Hospitality Manager, not necessarily from the club sector

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 

Provide those experts with the latitude to express their expertise to our advantage Enhanced staff training and presentation

Head Chef Peter Barter had joined us earlier in 2018 and Kristen Ramirez brought her many years of restaurant management experience to us in November. Just prior to Kristen’s commencement, we had moved to a temporary bar set up in the Devlin’s Room whilst the Members Lounge was under construction.

The temporary bar period was difficult for members and staff alike but it is very gratifying to reflect on the positive manner in which everyone accepted the situation in anticipation of improved facilities to come. I would particularly like to pay tribute to the F&B team for their dedication during this time by continuing to support our members whilst working in very trying conditions.

Kristen’s baptism was unique, to say the least, but she used this time of flux to get to know the club, her staff, and the expectations of members and management in preparation for the opening of Stage 1 (Members Lounge and facilities) of the new clubhouse. Part of that preparation was to work with Chef Peter on a revised menu offering, institute a high level of training for front-of-house staff, and to design new, trendier uniforms in keeping with the new décor.

Barnaby Sumner joined as General Manager in February this year and has been instrumental in bringing his team together to embrace shared objectives in the delivery of an enhanced level of service that is what our members expect and deserve.

Once Stage 1 was completed in February, the House Committee was able to shift focus to plan for memberbased functions for both the short and long term. Monthly themed dinners, the return of the popular Chef’s Table, and casual dining options have been introduced to the calendar and are proving very popular with members.

September 7 will see the start of a week-long celebration of our new clubhouse culminating in a “PHGC Celebrates” dinner on Saturday 14th and promises to christen our new home in fine style.

I have been extremely fortunate to Chair the House Committee comprising Margie Dearlove, Ann Elsley, Susie Nicholas, Greg Winters and Phil Stanton along with Steve Walker and Barnaby Sumner. Their energy, creativity and desire to serve the membership is inspiring and from their ranks will come a new Chair as I step down this year. Whilst initially reluctant to individualise, it would be unfair to Margie if I didn’t acknowledge her initial creation of the PHGC Celebrates week and the countless hours she has dedicated to the task with Greg and others in close support.

I believe the club is now very well established in every way necessary to constantly deliver an excellent service to our members and I look forward to sampling that service as a member in my Committee retirement.

My very great thanks to all with whom I have served.

Ross Howarth

Chairperson, House Committee

CLUBHOUSE REPORT This time last year I started my report with the news that the club renovation project was moving along very nicely after the initial problem of asbestos decontamination had set us back approximately three months.

Soon after writing that report, the project suffered a number of previously unforeseen hurdles that resulted in the Stage 1 (Members lounge and changeroom facilities plus the Pro Shop) completion date continually being revised backwards.

Our original intent, confirmed by the builders, was for completion prior to Christmas 2018. As the festive season approached it became clear that we would not be at completion and preferred to move the date to the New Year rather than open with partially completed facilities.

Once construction work resumed after the Christmas break, we could more confidently set mid-February as the opening date for Stage 1 and this subsequently occurred. In January, we approached Garrett Dwyer, a Pennant Hills Golf Club Ltd ABN 12 000 037 856

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long-term member of our club and a retired Project Manager with many years of experience in all facets of the construction industry. Garrett agreed to manage Stage 2 of our project as the club’s representative working in conjunction with the architects and the builders. The fact that Stage 2 was completed on schedule and in a more productive manner than Stage 1 is testament to Garrett’s experience, organisational ability and negotiation talents and we thank him for the time, energy and professionalism that he devoted to this important task.

As I write, the cottage has been demolished to make way for additional car parking and associated landscaping along the Burns Road wall of the clubhouse. Once that is completed, the Clubhouse Project is concluded.

Looking back over the life of the project, without doubt the low point was the discovery of a volume of asbestos beyond the level and location of that contained in the original specialist report. The cost implications were significant as were the changes that needed to be made to the plans and the loss of the previously planned indoor practice facility was particularly disappointing.

This project has been a labour of love over eight years and three concept iterations, the third being our current new home. From the moment the architects were briefed back in 2015 our single focus has been on delivery of enhanced services for our members specifically, upgraded lounge and entertaining areas, significant improvement in F&B service and standard, enhanced member locker facilities and an upgraded Professional Shop. The reaction of members since completion gives us confidence that the objective has been attained.

This outcome could not have been achieved without the dedication of all members of the Clubhouse Committee. The focus on member service was the mantra of the then President, Allan Watson, who also took on the very difficult asbestos issue, a subject with which he remains closely involved in managing the ongoing legal process.

Outside of the Committee and the Board, I don’t think any member could fully appreciate the contribution that Robin Taylor made to this project right up until his last day with the club in February this year. Robin’s main business experience was in Logistics & Strategy Planning and these skills proved to be invaluable to this project. We owe Robin a great debt of thanks for his dedication to the project and the incredibly long hours he worked from the outset.

Building and architectural expertise on the Committee came from Rob Stevenson and Phil Stanton respectively and it is not an understatement to say that we could not have successfully worked through the myriad of issues that we faced without their expert knowledge and guidance. Both of these gentlemen work full time running their own successful businesses which, when considering the countless hours they each devoted to this project, accentuates the thanks that should come their way from every member of the club.

My thanks to you both.

The majority male committee bowed to the superior female taste of Robin Hosking at the planning stage of internal décor and fittings and the result reflects her fine taste. Robin also played an important and humorous role in convincing Allan that he should concentrate on issues other than colours and fabrics.

For such a project, legal advice was essential and we thank Anne Goodrick for the hours she devoted to contract assessment and other agreements.

Moya Shepard was a key member of the committee in the early days and it was unfortunate that family needs saw her pull back from her role.

With Steve Walker coming in as President last October and Barnaby Sumner joining us four months later, their combined input, along with Garrett Dwyer mentioned above, has seen us move through to a successful completion of this project.

In standing down from the Board, I wish every member of our great club an enjoyable time savouring the services of our new home. Good golfing and good health to you all for many years to come.

Ross Howarth

Chairperson, Clubhouse Project

Pennant Hills Golf Club Ltd ABN 12 000 037 856

12

MEMBERSHIP REPORT The previous Board made a fundamental change to membership subscriptions that carried into the 20182019 year.

The objective of the change was to realign the subscription period and therefore our cash flow more closely to the budget year in order to provide a greater level of certainty in planning both the capital and recurrent budget. This meant two subscription phases, the first for 9 months to 31 March 2019 and the second an annual amount to 31 March 2020.

In addition to this the current Board undertook an exhaustive review of the membership structure and subscription levels and these changes took effect on 1st April 2019. This overhaul of our structure and pricing considered both the category of membership and the pricing relative to our peer clubs. More importantly, it examined and responded to the needs of our current members. Revising subscription levels is always a challenge. We have to cover rising costs and at the same time improve the level of service to members through higher standards and better quality facilities both on and off the course. At the same time, we endeavor to minimise the financial impact on members.

The changes to timing, the revision of membership categories and increases in subscription levels as well as the difficulty of clubhouse trading and playing golf through an extended period of disruption caused by an extensive building project took their toll on membership levels for the year ended 30 June 2019.

Fortunately, the level of 7 day playing members held firm and putting aside the transfers between categories, the major decline was in the deferred category where we lost 56 members. There were 1278 members as at 30 June 2019.

The course improvements have been noted elsewhere in this report as has the completion of the modernisation of the clubhouse and relocation of the pro shop. The increase in the standard of the on and off course offering of Pennant Hills Golf Club has underpinned a renewed interest in membership. The member induction meetings for June and July of this year saw applications approved for 21 new members, predominately in the 7 day category.

Our General Manager and the Membership Committee have put in place a number of membership acquisition initiatives. The results thus far are comforting and the pipeline is encouraging.

Sadly we lost a number of members who passed away during the year; we miss them and celebrate their contribution to our club.

Bob Adcock Keith Davidson Bryce Downes Max Haworth Keith Hayes Betty Hughes Peter Kench Harry Learoyd Bryan Mortlock Mel Ritchie

Michael Rowan

Chairperson, Membership

Pennant Hills Golf Club Ltd ABN 12 000 037 856

13

MEMBERSHIP CATEGORY STATISTICS As at 30 June 2019 Category

As at 31 December 2018

As at 30 June 2018

Male

Female

Male

Female

Male

Female

2 Day Member

80

26

96

34

94

39

6 Day Member

96

156

161

162

176

183

6 Day Member 21 to 25 Yrs

2

2

3

2

10

2

6 Day Member 26 to 30 Yrs

3

2

4

1

3

1

6 Day Member 31 to 40 Yrs

6

2

8

3

10

3

6 Day Member Over 80 Yrs

3

6

6

6

2

5

6 Day Member Senior

31

21

44

24

44

22

7 Day Life Member

1

1

1

1

2

1

7 Day Member

248

0

219

0

249

0

7 Day Member 21 to 25 Yrs

10

1

13

2

16

2

7 Day Member 26 to 30 Yrs

4

0

7

0

12

0

7 Day Member 31 to 40 Yrs

15

0

16

0

20

0

7 Day Member Over 80 Yrs

3

0

2

0

3

0

7 Day Member Senior

54

0

48

0

53

0

7 Day Member Special

4

0

5

0

5

0

7 Day Member U21 Yrs

54

16

57

16

71

18

Deferred Member

171

36

188

47

217

46

Flexible Member

85

8

84

5

98

9

Honorary Member

1

0

0

0

0

1

Social Member

63

63

63

61

74

64

Staff Member

2

2

3

1

2

1

936

342

1028

365

1161

397

Pennant Hills Golf Club Ltd ABN 12 000 037 856

14

LADY MEMBERS’ REPORT All activities for 2018-19 are detailed in the Ladies Annual Report.

Ladies Committee for 2018-19 President: Captain: Secretary: Competition Manager: General Committee:

Susan Nicholas Sally Moffatt Sandra Murphy Sally Gooley Jenny Harvey Janet Shand Lyn Toohey Judy Trickett

Pennant Hills Golf Club has experienced a lot of change over the last twelve months. The most significant being the clubhouse renovations which, now completed, have been well received by the membership. The activities of the lady members have continued throughout this process despite some events having to be rescheduled to accommodate the renovation timetable. In February we moved into our new locker room and we are indebted to Bruce Jones who gave many hours putting together a bookcase and a wall unit so our library and other information could be displayed.

This year’s golfing activities, in conjunction with the major trophy events, have been very well supported.

They included a Green Day instead of St Patrick’s Day, Beanie Day for the winter solstice, Visitors’ Day, Cancer Charity Day and the High Tee Classic. For the first time, we held a Biggest Morning Tea which supported one of our members, Karen Long, raising money for the Breast Cancer Foundation. Karen is running in the New York Marathon at the end of 2019 and part of the conditions of entry is to raise money for a charity.

The Ladies Championships Finals Day was held in September in 2018. For a change the weather was kind and many ladies played golf before watching the matches. More than sixty ladies stayed to congratulate the new champions while enjoying a delicious high tea.

The Junior Development Program continues to grow under the direction of our Teaching Professional, Rachel Bailey. Our Junior members have competed in interclub and state events throughout the year and are constantly improving their skills with the quality coaching and mentoring they are receiving. Hamish Murray and Olivia Kerr have been announced to represent Pennant Hills as Junior Captains during 2019 and 2020. Thank you to Nicki Howlett and all the other members who have given time to support the Junior program.

Rhonda Parkinson is one of the committee members of the Kendal Binns Foundation. They are raising funds to support male and female golfers. We are fortunate someone with Rhonda’s skills and commitment has agreed to represent the ladies.

The Mystery Day which is held in September while the Pennant Hills greens are being renovated continues to be popular. More than fifty ladies headed off to Twin Creeks for a day of challenging golf. This turned out to be handy preparation for those ladies who qualified for the Lexus Cup final which was played a few weeks later. For the autumn greens renovation trip eighty ladies ventured south to Wollongong for two days of golf, laughter and socialising. From the feedback, travelling to a less traditional golf venue was appreciated.

Rachel Bailey’s annual trip away was to the Gold Coast which was surprisingly chilly for June. Twenty ladies played Royal Pines, Lakelands, Hope Island and The Glades. There was much good-natured banter about the participants’ successes on the courses and the challenges they found.

The Pennant Hills ladies compete in interclub Pennant competitions at all handicap levels, participating in six Friday and two Sunday competitions. Before each team started their campaign, Rachel Bailey conducted an on-course clinic. This was followed up by a briefing on rules given by Sue Fabian. The players really appreciated this support. Unfortunately, this year we did not bring home any trophies but all of the teams enjoyed the opportunity to play at different courses and meeting up with old foes from other clubs. There is a special camaraderie that develops amongst pennant teams and this was celebrated at the Pennants Pennant Hills Golf Club Ltd ABN 12 000 037 856

15

Dinner organised by our captain, Sally Moffatt, assisted by Jenny Harvey, Janet Shand and Lyn Toohey.

At this dinner Hannah Sneath was named Grade Player of the Year and Pennant Player of the Year was Susie Wales.

The core of our Division I Grade team this year was Hannah Sneath, Mimi Elina, Nicki Howlett, Anne Eldridge and Mary Jo Usher. It was the first time Anne and Mary Jo have represented Pennant Hills at Grade level and they did a sterling job. Olivia Kerr was not able to play as she is studying for her HSC and Debbie Bennett was only able to play two matches due to circumstances beyond her control. Bev Archer was persuaded to play one match and did a great job securing a square for the team. Amy Maguire filled in another time. The team played very well throughout the season and will remain in Division I in 2020.

We continue to enjoy playing interclub matches against Castle Hill, Oatlands and Avondale. We have not been victorious but the results are getting closer and closer so we remain optimistic that our day will come soon.

Neil Rolfe leads an enthusiastic team in the new Pro Shop. The members enjoy the opportunity to browse the stock while having refreshments. Pennant Hills is fortunate to have golf professionals of the quality we do. Their teaching, interest and encouragement is appreciated. The game improvement days run by Neil with Rachel Bailey and Liam Sheils have been very popular and the participants are very keen to put into practice their refreshed skills. To Andrew, Jarrod and Max thank you for all you do. Of course, what would a Monday or a Thursday be without seeing Keith Smith and his clipboard as he sends us on our way? Thank you, Keith.

Information sessions about the changes to the rules of the golf introduced at the beginning of 2019 were conducted by Sue Fabian. These were well supported by the ladies. We would also like to thank Sue and Lesley Roberts for being the referees of our major knock-out competitions.

The Social Committee, led by Ann Elsely, has had a challenging twelve months as many of the usual events had to be modified due to space restrictions. Nevertheless, the Children’s Christmas Party and the Seafood Alfresco went ahead and were well supported. Club Saturday was held in May with the presentations being made over drinks and canapes. Participation in the Trivia Night was more than double that of previous years. With the renovations complete we can look forward to many more opportunities to socialise at the club.

Robin Hosking continued to represent the ladies on the Clubhouse Project Committee chaired by Ross Howarth. This has been very time consuming through the renovation process and the final product is a credit to them.

Our Christmas Dinner was rebadged this year to an Annual Dinner as we were asked to bring it forward to October due to the renovation timeline. Over 180 ladies enjoyed a delicious dinner at tables decorated by Pam Cuneen, Caron Sprowles and Ann Elsley. We celebrated the 99th birthday of Dot Lawson and the 2018 Club Champion, Hannah Sneath’s speech was a video about her life which was very entertaining.

Trish Johnson and Lisa Hamer and their crew took us aboard The Love Boat for some fun and laughter. A big thank you to all involved in the production along with the very talented cast. This is the tenth year that Trish and Lisa have produced our show. They seem to have a bottomless pit of ideas. We hope they still may have some ideas left for next year’s production.

Bridge is an important social activity for many of our members particularly those who are no longer out on the course. Most days you come to the club you will find a group of ladies playing. We do appreciate the work of Sue Rogge and Carolyn Brereton who coordinate the Tuesday Ladies Bridge Group which is always well attended. Thank you to Kay Temple and Leanne Goodall who organise the monthly Friday Bridge Day which is not just for the ladies and Kay Brunner who organises the bridge interclubs.

Thank you to Marlene Ratcliffe and Adriana D’Orazio for coordinating the ladies flower roster. To all the ladies who are on this roster thank you too for your work. The new locker room has necessitated a change in presentation but the flower roster team has managed this beautifully. Adrienne Gorme and Lyn Isles did a wonderful job setting up our library in its new space. The ladies certainly appreciate how well organised it is. Our thanks to Joan Eyles and Lyn Stanton for looking after the weekly Pilates session at the club. It is a popular activity on Tuesday mornings.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

16

The archive team of Ann Crisp, Ron Harper and Bruce Jones has moved, with the ladies committee, to the old Professional Shop. They still store a significant amount of club’s archives in their own homes and are optimistic there will be some space to display them in the completed clubhouse. Many members are possibly unaware of the work they do. It is appreciated how quickly they respond to spurious requests for information about the activities of Pennant Hills Golf Club over the last ninety-six years.

Kerrie Graham and Hilary Flynn have continued in the roles of Veterans Delegate and Assistant this year.

The lady Veterans appreciate their regular communication about events. Thank you to both ladies for their work.

Our horticulturalist, Rod Fletcher, has done an outstanding job creating the gardens around the new members’ entrance and locker rooms as well as the ongoing care of the gardens on the course. Many lady members assist Rod’s work by keeping the weeds at bay in areas around the course. Thank you to these ladies for their efforts: Anne de Carvalho, Naseem Chopra, Margie Dearlove, Clare Fraser, Lucie Gabb, Judith Grant, Chrissie Grier, Gail Holsgrove, Robin Hosking, Lyn Isles, Chris Kevin, Annie McDonald, Susie Nicholas, Alison O’Sullivan, Rhonda Parkinson, Lesley Roberts, Maggie Rowe and Helen Sugden Major Trophy winners for 2018 and 2019: Club Champion 2018: Bronze 1 Champion 2018: Bronze 11 Champion 2018: Pennant Hills Cup 2018: Pennant Hills Bronze Salver 2018: Presidents Cup 2019: Captains Cup 2019: Singles Knockout 2019: Four Ball Knockout 2019: Foursomes Champions 2019: Bronze I Foursomes 2019: Bronze II Foursomes 2019:

Hannah Sneath Coral Lawrence Joy Bull Kelsey Bennett (St Michaels) Sandra Lennox Naseem Chopra Mary-Jo Usher Deborah Amos Jan Cooper and Carole Whitehouse Monique Herman de Groot and Carole Whitehouse Ruth Binns and Judith Davison Adriana D’Orazio and Marlene Ratcliffe

A dedicated and popular member of Pennant Hills Golf Club, Betty Hughes, died in July this year aged 89.

Betty was on the Ladies Committee from 1989 until 1998. She was the Ladies Treasurer from 1991 to 1993 and Ladies President from 1996 to 1998. Betty was a very keen bridge player and played regularly at the club.

On behalf of the lady members, I would like to thank the members of the club’s Board for their hard work over the past twelve months. The clubhouse renovations are complete, the membership categories have been reviewed and attention is turning to the course. We do appreciate the commitment of the board members to ensuring we have a prosperous and vibrant club.

We welcomed a new General Manager, Barnaby Sumner, to Pennant Hills in February and thank him for his work so far. We would also like to thank Craig Usher, Kim Truijens and Jodi Sparks for their work. Many members would be unaware of the amount of support they give the ladies and how much this enhances our club experience. The Food and Beverage team has been working under extremely difficult conditions over the last twelve months with the renovations. Nevertheless they have been able to produce delicious food and good service for the ladies’ functions throughout the year. We have received many compliments from visitors to the club and would like to thank the teams led by Kristen Ramirez and Peter Barter.

Finally to the Ladies Committee, an enormous thank you for your work. They have been in temporary accommodation for most of the year and, nevertheless, have organised the quality events and competitions expected. The new location for the ladies committee is not ideal but they will continue to be strong representatives of the interests of the lady members. A special mention goes to our Captain, Sally Moffatt, who has put her heart and soul into her role. Finally, thank you to all the lady members for the support they have given throughout a difficult year.

Susan Nicholas

Ladies President

Pennant Hills Golf Club Ltd ABN 12 000 037 856

17

KENDAL BINNS FOUNDATION REPORT The foundation continues to improve its procedures in the development of young golfers into lifelong members of Pennant Hills. This year a Commencement Dinner was held for all scholarship players and their parents. At this very successful dinner attended by Kendal and our head professional Neil Rolfe, the players were presented with a ‘Memorandum of Understanding’ which detailed their golfing and behavior responsibilities. This was well received by the parents and furthers our efforts to balance the rights and responsibilities of our young members.

This is in addition to our annual Christmas dinner, which is hosted by Rachel Bailey and a fun event that all are welcome. If you want to see our young juniors at their best, I strongly recommend that you attend.

Juniors currently on Scholarship: Olivia Kerr, Hamish Murray, Stephanie Shuttleworth, Matt Davidson, James Skuodas, Tom Davey, Oscar Haugerud, Adhitya Nair and Ryan Richards The foundation again thanks:      

All the members who continue to donate to the foundation Rachel Bailey for her development of the Sunday clinics Thornleigh Golf Centre The Board of Pennant Hills and the office staff General Manager Barnaby Sumner who attends our meetings All of you who supported the very successful raffle (over 200 of you)

The Kendal Binns Junior Foundation welcomes Rhonda Parkinson to the committee. Rhonda, who is known for her hard work and enthusiasm, has brought those traits to the foundation and has made a positive impact. Thanks must also be given to Nicki Howlett who worked extremely hard for the foundation and Pennant Hills juniors.

You will be pleased to know that due to the excellent work of Rachel the foundation may need more support to finance her excellent initiatives, which are developing committed golfers. It is expected a number of these Sunday clinic participants will advance to the stage of earning scholarships from the Kendal Binns Junior Foundation.

FINANCES: As of July 22nd, the foundation has a bank balance of $23,355.71. While this appears healthy there is no doubt that the continued improvement in the development of our young players will lead to more scholarships and further demands for support. This is what we hoped would happen so we are very pleased.

However, this necessitates further fund raising in the future. A good start was made at the Presidents and Captains Luncheon where the 130 strong Lady members appear to be happy to help.

In conclusion, the committee of the KBJF are: Graeme Martin, Rhonda Parkinson, Chris Allen and Ed Truscott. They welcome any opportunity to discuss what is happening in the foundation.

Ed Truscott

Chairperson, Kendal Binns Foundation

Pennant Hills Golf Club Ltd ABN 12 000 037 856

18

EX-SERVICE SECTION REPORT Report on Remembrance Trophy and Ex-Services Golf Day The successful 2018 ex-services day held on Sat 18th August included a field of 200 generous golfers and as a result, our club was able to make a donation of $4000 to Legacy which included direct donations of $385 made by some of our ex-service members.

The Returned Servicemen’s Memorial Entrance was opened 62 years ago in 1956. The ex-service committee has been conscious that as the site gets developed over time it may be necessary to re position the main entrance and that this important part of our heritage should be preserved. With this in mind, their committee elected to make a contribution of $500 which brings the Memorial Gates Fund to $14,000.

The overall profit on the day was down by about $500 on 2017 due to less pre sales of raffle tickets and increased costs generally notwithstanding the club enjoyed the generosity of a few of our own to provide the raffle prizes. The raffle was won by Peter Barnes who is an ex service member.

The sausage and nip of scotch certainly worked for the morning players who featured on the list of winners.

The half way sustenance of Bully Beef and Damper Rolls, washed down with the traditional gunfire brew of Rum and Coffee was again appreciated by the field.

The Friday Long Lunchers led by Michael Williams and his wife Helen, took over the servery duties at the sausage breakfast and at the half way and the club is deeply appreciative of their gift of time and support.

A major part of the money raised on the day came from the persuasive powers of Pebbles Punia and Mark Cordony who were running a book on the accuracy of players hitting on to the 18th tee. They raised the sum of $2246 encouraging the punters with enticing odds and chancy hits including clearing the creek.

Legacy volunteers led by an ex-member, Allan Meaker assisted at the 18th.

Peter Sprowles read the Ode prior to the presentation of trophies where the club welcomed a number of current armed services guests. Bruce Lumsden, on behalf of the family of the late Geoff Lumsden donated and presented the Ex Services Trophy to Andrew Mowat. Bruce has agreed, for the immediate future to provide the trophy in Geoff’s Honour. 2019 will be the 94th year of competition for the Ex-Services Trophy previously competed for as the AIF Cup and then World War II Trophy.

The Remembrance Trophy; known by some as the Lucknow Trophy is a magnificent trophy and has its own interesting history and military connection. The trophy donated by the Waterson family was presented by Terry to Peter Handel.

The A Grade, B Grade, C Grade and Scratch trophy winners were Sabak Taheri, Peter Handel, Peter Illingworth and Andrew Richards respectively.

The winning ex services 4 ball team with a score of 48 was Terry Pankhurst, his brother Frank, Peter Cook and Bryce Corderoy.

There are a number of demanding and administrative arrangements that need to be capably carried out to make this day a success and we are grateful to Liam and Jared in Professional Shop, Craig Usher and Kim Truijens in the office, as well as Peter and Phoebe for the catering.

The date of the Remembrance trophy and Ex Services day is normally aligned to VP (Victory in the Pacific) Day, also referred to as VJ (Victory over Japan) Day, it is celebrated in Australia on 15 August. This date commemorates Japan's acceptance of the Allied demand for unconditional surrender on 14 August 1945.

For Australians, it meant that the Second World War was finally over. The date being a Saturday immediately following 15th August in the 2019 calendar is 17th August and we anticipate holding this event on that day as the 2019/2020 calendar is agreed.

Michael Rowan, Peter McBeath, Brian Hamilton & Peter Sprowles Ex Services Committee Michael Rowan

Chairperson, Ex–Service Committee Pennant Hills Golf Club Ltd ABN 12 000 037 856

19

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 2019 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 C. Allen J. A. Buchanan M. Dearlove A. M. Goodrick P. D. Henry R. W. Howarth A. G. Jones D.J. Leach C.J. Pragnell M.J. Rowan D. P. Stanton A. L. Stubbs S.J. Walker A. J. Watson G.A. Winters

Occupation Retired Company Director Retired Property Lawyer Business Consultant General Manager - Media Retired Retired Retired Retired Architect Company Director Retired Chartered Accountant Retired

Year elected 2016 2008 2018 2016 2014 2010 2017 2018 2018 2019 2015 2011 2018 2011 2018

Resignations and Appointments Resigned 15/4/19 Resigned 22/10/18 Appointed 22/10/18 Resigned 22/10/18 Resigned 22/10/18 Appointed 22/10/18 Appointed 22/10/18 Appointed 24/4/19 Resigned 22/10/18 Appointed 22/10/18 Resigned 22/10/18 Appointed 22/10/18

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

Directors Names C. Allen J. A. Buchanan M. Dearlove A. M. Goodrick P. D. Henry R. W. Howarth A. G. Jones D.J. Leach C.J. Pragnell M.J. Rowan D. P. Stanton A. L. Stubbs S.J. Walker A. J. Watson G.A. Winters

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

House, Membership Playing & Match, Membership & Marketing, Clubhouse, Business & Strategy Membership & Marketing (Chairperson), Clubhouse Experience, Clubhouse (Chairperson), House (Chairperson) Business & Strategy, Membership & Marketing Planning & Finance (Chairperson), Membership Course & Playing (Chairperson), Planning & Finance, Membership Planning & Finance, Membership (Chairperson) Clubhouse, Clubhouse Experience, Business & Strategy Clubhouse Experience (Chairperson), Membership & Marketing.

As President is an ex-officio member of all Committees As President is an ex-officio member of all Committees Course & Playing, House

COMPANY SECRETARY Barnaby Sumner, holds the position of Company Secretary and General Manager of Pennant Hills Golf Club. Barnaby has been Company Secretary and General Manager since March 2019 after joining the Club from Oatlands Golf Club where he held the position of General Manager. His previous management experience includes senior management roles with Elanora Country Club & Concord Golf Club along with roles with Australian hotel companies, being Mirvac and Gazebo and internationally with the Fairhaven Hotel Group (U.K.)

Pennant Hills Golf Club Ltd ABN 12 000 037 856

20

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

There has been no significant change in the nature of these activities during the year.

OBJECTIVES The main long term objective of these activities is to provide an excellent experience for members.

This key objective will be achieved by focusing on four further short term objectives: 1. The golf course – provision of a quality course maintained to a high standard.

2. The professional and professional shop – facilities to suit the needs of members at all levels.

3. Finance - financial stability.

4. The club house and infrastructure - facilities which meet the requirements of members.

These objectives will be underpinned by both short term and long-term strategies.

STRATEGIES TO ACHIEVE OBJECTIVES 

Membership. Maintain a contemporary membership structure to deliver satisfaction to members through, the provision of services which make the club attractive to both existing and new members. This will be designed to support member retention and recruitment of new members.



Golf Course. Refine the master plan for ongoing development of the course and determine the feasibility of implementing such a plan, including developing a realistic timeline. Pursue the opportunity of securing a supplemental water supply for the course by utilising drainage from the M1/M2 Tunnel.



Golf Professional. Encouragement of playing members, in particular through teaching, coupled with continuing support for the Kendal Binns Foundation. Provision of a relevant retail experience.



Finance. Develop a sustainable funding plan which will provide financial stability.



Infrastructure. Following completion of the club house improvement project, assess what further work needs to be done (if any) to ensure the facilities meet members’ needs.

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.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

21

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2019 Note

2019

2018

$

$

Revenue Sales Revenue

2

1,706,540

2,332,474

Subscriptions, Entrance Fees, Golf Services and Other

2

3,881,193

4,142,954

Clubhouse Upgrade Levies and Donations

2

727,102

-

6,314,835

6,475,428

2

50,444

2,500

Cost of Sales

3

(818,215)

(1050,920)

Cost of Rendering Services

3

(134,173)

(135,872)

Member Benefits

3

(94,205)

(118,398)

(1,046,593)

(1,305,190)

Bar and Catering Expenses

(865,166)

(1,102,285)

Pro Shop Expenses

(372,251)

(355,404)

Golf Services Expenses

(257,367)

(254,178)

(1,952,207)

(1,885,533)

Total Revenue Other Income Cost of Goods and Services

Expenses by Function

Course Expenses House Expenses

(488,045)

(506,575)

(1,003,303)

(959,826)

(23,529)

(52,171)

(4,961,868)

(5,115,972)

(6,008,461)

(6,421,162)

356,818

56,766

-

-

356,818

56,766

Donations Received

10,346

12,788

Foundation Monies Expended

(13,557)

(6,115)

(3,211)

6,673

Net Surplus / (Deficiency) for the Year Transfer from/(to) Kendal Binns Junior Foundation Reserve Transfer from/(to) Memorial Gates Reserve

353,607

63,439

3,211

(6,673)

(500)

(1,000)

Transfer from/(to) Course Development Reserve

(31,762)

-

Surplus / (Deficiency) Attributable to Members

324,556

55,766

-

-

324,556

55,766

Administration Expenses Write Down in Clubhouse Assets

Total Costs and Expenses Surplus / (Deficiency) before Income Tax Income Tax Expense Surplus / (Deficiency) after Income Tax Kendal Binns Foundation

Surplus/ (Deficiency) from Kendal Binns Foundation

13

Other Comprehensive Income for the Year Total Comprehensive Income for the Year Attributable to Members

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

27

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 Note

2019

2018

$

$

2,283,088

ASSETS Current Assets Cash and Cash Equivalents

15(a)

181,402

Trade and Other Receivables

4

552,961

49,306

Inventories

5

146,081

160,784

Other Assets

6

189,317

88,495

1,069,761

2,581,673

10,305,772

5,503,873

Total Non-Current Assets

10,305,772

5,503,873

Total Assets

11,375,533

8,085,546

Total Current Assets Non-Current Assets Property, Plant and Equipment

7

LIABILITIES Current Liabilities Trade and Other Payables

8

686,967

303,525

Borrowings

11

10,379

-

Provisions

9

116,357

170,836

Other Current Liabilities

12

2,334,122

1,710,334

Deferred Income

10

48,074

47,759

3,195,899

2,232,454

Total current liabilities Non-current liabilities Borrowings

11

2,039,839

-

Long-Term Provisions

9

35,183

65,287

Long Term Deferred Income

10

702,023

738,823

Total Non-Current Liabilities

2,777,045

804,110

Total Liabilities

5,972,944

3,036,564

NET ASSETS

5,402,589

5,048,982

5,338,049

5,013,493

MEMBERS’ FUNDS Retained Earnings Kendal Binns Junior Foundation Reserve

18,778

21,989

Memorial Gates Reserve

14,000

13,500

Course Development Reserve

31,762

-

5,402,589

5,048,982

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

28

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2019

Accumulated Funds

Kendal Binns Foundation Reserve

Memorial Gates Reserve

Course Development Reserve

Total Members’ Funds

$

$

$

$

$

4,957,727

15,316

12,500

-

4,985,543

55,766

-

-

-

55,766

6,673

-

-

-

6,673

(6,673)

6,673

-

-

-

1,000

-

-

-

1,000

(1,000) 5,013,493

21,989

1,000 13,500

-

5,048,982

324,556

-

-

-

324,556

(3,211)

-

-

-

(3,211)

3,211

(3,211)

-

-

-

500

-

-

-

500

(500)

-

500

-

-

31,762

-

-

-

31,762

(31,762)

-

-

31,762

-

5,338,049

18,778

14,000

31,762

5,402,589

Balance at 1 July 2017 Surplus Attributable to Members Surplus from Kendal Binns Junior Foundation Transfer to Kendal Binns Junior Foundation Reserve Donations to Memorial Gates Transfer to Memorial Gates Reserve Balance at 30 June 2018 Surplus Attributable to Members Deficit from Kendal Binns Junior Foundation Transfer from Kendal Binns Junior Foundation Reserve Donations to Memorial Gates Transfer to Memorial Gates Reserve Contributions to Course Development Fund Transfer to Course Development Reserve Balance at 30 June 2019

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

29

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2019

Note

2019

2018

$

$

Cash flows from operating activities Receipts from members / customers

6,494,109

7,093,526

Payments to suppliers and employees

(5,404,458)

(7,021,910)

Interest Paid

(39,336)

-

Interest Received

10,577

39,985

1,060,893

111,601

18,182

1,500

Payment for property, plant and equipment

(5,230,979)

(1,335,243)

Net cash used in investing activities

(5,212,797)

(1,333,743)

Net cash generated from operating activities

15(b)

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

Cash flows from financing activities Proceeds from Bank Loans

2,000,000

-

Proceeds from Equipment Finance

59,027

-

Repayment of Equipment Finance

(8,809)

-

Net cash generated from /(used in) financing activities

2,050,218

-

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

(2,101,686) 2,283,088

(1,222,142) 3,505,230

181,402

2,283,088

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

30

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 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 28th August 2019 by the board of directors.

Net Current Liability Position As at 30 June 2019 the company has a net current liability position of $2,126,138 primarily due to the large balance of subscriptions paid in advance. The subscriptions paid in advance for the 2020 year are not refundable and will be recognised as revenue over the 2020 financial year. The company has access to a bank facility of $3 million which it can draw down on when cash flow requires it. In addition, subsequent to 30 June 2019 the company has increased the bank facility with National Australia Bank to $3.85 million.

More details on this facility are included in Notes 11 and Notes 23 to these financial statements. Based on these factors the directors are of the opinion that the company will be able to pay its debts when they fall due.

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

Pennant Hills Golf Club Ltd ABN 12 000 037 856

31

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued) (c) Property, Plant and Equipment (continued) 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.

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

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 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.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 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 2020 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.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 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 and Revised Standards that are Effective for these Financial Statements A number of new and revised standards became effective for the first time to annual periods beginning on or after 1 July 2018. Information on the more significant standards is presented below.  



 

AASB 9 Financial Instruments AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement. It makes major changes to the previous guidance on the classification and measurement of financial assets and introduces an ‘expected credit loss’ model for impairment of financial assets.

When adopting AASB 9, the Group has applied transitional relief and opted not to restate prior periods. Differences arising from the adoption of AASB 9 in relation to classification, measurement, and impairment are recognised in opening retained earnings as at 1 July 2018.

AASB 2016-5 Amendments to Australian Accounting Standards - Classification and Measurement of Share-based Payment Transactions Interpretation 22 Foreign Currency Transactions and Advance Consideration.

The adoption of these standards has not had a material impact on the company.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

35

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued) (p) New and Revised Standards that are Effective for these Financial Statements (continued) Accounting Standards issued but not yet effective and not adopted early by the Company At the date of signing of the financial statements, the following AASB Standards and AASB Interpretations were also in issue but not yet effective.

Standard/Interpretation

AASB 15 Revenue from contracts with customers AASB 16 Leases

Effective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year ending

1 January 2019

30 June 2020

1 January 2019

30 June 2020

The potential effect of the revised Standards/Interpretations on the company‘s financial statements has not yet been determined.

(q)

Creation of new Reserves and the Restatement of Prior Year Comparatives During the year Reserves were created to recognise contributions received for an identifiable and specific purpose. The reserves created were for Memorial Gates and Course Development.

Donations from Ex Services members were received for the future establishment of new Memorial Gates and contributions from members through competition and green fees were received for future course development works.

In establishing the Reserves prior year comparatives were restated as the Memorial Gates Fund had been previously reported in Other Liabilities. The prior year donation to Memorial Gates was restated to recognise this donation in the Statement of Comprehensive Income and a resultant transfer to reserve disclosed in the Statement of Changes in Equity.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2019 $

2018 $

651,178 617,566 1,268,744

776,435 1,022,295 1,798,730

437,796

533,744

1,706,540

2,332,474

337,473 247,806 585,279

378 633 264,467 643,100

181,672 158,927 340,599

177,479 155,703 333,182

Bar, Catering & Function Services Room and Equipment Hire & Other Function Income

16,700

53,381

House Services Locker Rentals

3,540

3,162

2,721,502 10,148 46,617 8,639 2,786,906

2,857,466 37,485 42,346 18,923 2,956,220

80,455 48,784 18,930 148,169

90,114 48,421 15,374 153,909

3,881,193

4,142,954

707,772 19,330 727,102

-

6,314,835

6,475,428

18,182 31,762 500 50,444

1,500 1,000 2,500

NOTE 2: REVENUE & OTHER INCOME SALES REVENUE Bar Sales Catering Sales Pro Shop Sales TOTAL SALES REVENUE SERVICE REVENUE & OTHER INCOME Golf Services Competition Fees & Member Playing Fees Visitor & Corporate Fees Pro Shop Services Hire of Carts Pro Shop Lessons and Equipment Storage, Hire and Repairs

Other Operating Income Members’ Subscriptions Interest Received Finance Fees Received Other Income Non-Operating Income Entrance Fees Telecommunications Tower Rent Unredeemed levy Vouchers

TOTAL SERVICE REVENUE & OTHER INCOME Clubhouse Upgrade Levies & Donations Levy Income Donations to Clubhouse Upgrade

TOTAL REVENUE & OTHER INCOME Other Income Gain on Disposal of Property, Plant and Equipment Members’ Contributions to Course Development Fund Ex-Serviceman’s Donation to Memorial Gates Fund Pennant Hills Golf Club Ltd ABN 12 000 037 856

37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2019

2018

$

$

- Auditing the Accounts - Taxation Services Provided by Related Practice of Auditor

19,500 1,050

19,000 1,215

Depreciation of: Building

153,642

108,167

Plant, Equipment & Course Irrigation System

251,909

311,768

Total Depreciation and Amortisation

405,551

419,935

23,529

52,171

Bank Loans

47,833

-

Equipment Finance

1,633

-

49,466

-

Bar

250,047

287,451

Catering

269,248

419,053

519,295

706,504

298,920

344,416

818,215

1,050,920

Cart Running Costs

67,606

60,880

Repair and Service Costs & Teaching Commission

66,567 134,173

74,992 135,872

Pro Shop – Equipment & Merchandise Discounts

15,932

23,843

Golf Services – Visitor Passes & Business Golf

78,273 94,205

94,555 118,398

NOTE 3: INCLUDED IN DETERMINING SURPLUS FOR THE YEAR Remuneration of the Auditor for:

Impairment of Assets Write Down in Clubhouse Assets Interest Paid & Payable

Cost of Sales

Pro Shop

Cost of Rendering Services – Pro Shop

Member Benefits

Pennant Hills Golf Club Ltd ABN 12 000 037 856

38

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2019

2018

$

$

553,293

51,644

(332)

(2,338)

552,961

49,306

Deferred Entrance Fees

-

-

Provision for Un-Financials

-

-

-

-

552,961

49,306

NOTE 4: TRADE AND OTHER RECEIVABLES Trade Receivables Provision for Impairment of Receivables

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

$

$

$

$

-

-

-

-

4,760

236

(2,658)

2,338

Opening Balance

Charge for the Year

Amounts Written Off

Closing Balance

$

$

$

$

-

-

-

-

2,338

(2,006)

-

332

1-Jul-17 Deferred Entrance Fees Trade Receivables

1-Jul-18 Deferred Entrance Fees Trade Receivables

Pennant Hills Golf Club Ltd ABN 12 000 037 856

30-Jun-18

30-Jun-19

39

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2019

2018

$

$

146,081

160,784

189,317

88,495

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

2,206,805

2,001,178

423,253

4,640,736

Additions at Cost

-

-

218,915

1,116,328

1,335,243

Disposals

-

-

-

-

-

Transfers

-

-

-

-

-

Depreciation Expense

-

(108,167)

(311,768)

-

(419,935)

Impairment Write Down

-

(19,427)

(32,744)

-

(52,171)

9,500

2,079,211

1,875,581

1,539,581

5,503,873

-

-

145,454

5,085,525

5,230,979

Disposals

-

-

-

-

-

Transfers

-

-

-

-

-

Depreciation Expense

-

(107,105)

(251,909)

(46,537)

(405,551)

Impairment Write Down

-

795

(24,324)

9,500

1,972,901

1,744,802

Balance at 1 July 2017

Carrying Amount at 30 June 2018 Additions at Cost

Carrying Amount at 30 June 2019

Total $

(23,529) 6,578,569

10,305,772

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 1/7/16 was $5.5 million. There has not been an updated valuation issued as at the date of this report.

Refer to Note 11 for details of security over property, plant and equipment.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

40

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 2019

2018

$

$

Trade Payables

181,727

131,313

Sundry Payables and Accrued Expenses

505,240

172,212

Trade and Other Payables

686,967

303,525

Employee Benefits – Annual Leave

100,832

134,216

Employee Benefits – Long Service Leave Employee Benefits – Severance

15,525 -

12,089 24,531

116,357

170,836

35,183

65,287

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 2019

2018

$

$

48,074

47,759

702,023

738,823

Current Deferred Income – Communications Tower Non-Current Deferred Income – Communications Tower

In the 2015 financial 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

41

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

NOTE 11: BORROWINGS 2019

2018

$

$

10,379

-

2,000,000

-

39,839

-

2,039,839

-

Current Commercial Loan - Equipment Non-Current Bank Loan Commercial Loan - Equipment

Facilities During the year the Company changed its primary banking arrangements from Westpac to NAB. This included establishment of a borrowing facility and a change in the Company’s transactional banking arrangements.

In the current year the Company has entered into a $3Million borrowing facility to assist with the funding of the Clubhouse renovations. The facility available to the Company reduces to $2.75Million in June 2020, $2.5Million in June 2021 and $2Million in June 2022. The facility expires in July 2022.

In the current year the Company entered into two Commercial Loans for the purchase of course equipment. The term of each of these arrangements is five years and expire in November 2023.

Security The Company’s primary banker holds registered first mortgages and floating charges over the assets and uncalled capital of the Company.

The Company’s equipment financier holds a security interest over the equipment purchased for the duration of the financing agreement.

NOTE 12: OTHER LIABILITIES 2019

2018

$

$

2,152,192

1,535,982

Food and Beverage Levy in Advance

133,492

118,101

Functions in Advance

23,730

33,773

Unredeemed Vouchers

3,025

2,926

Other

21,683

19,552

2,334,122

1,710,334

Current Subscriptions in Advance

Pennant Hills Golf Club Ltd ABN 12 000 037 856

42

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 NOTE 13: KENDAL BINNS JUNIOR FOUNDATION RESERVE The “Kendal Binns Foundation” is registered as a project with the Australian Sports Foundation to receive donations for the development of promising junior members. The Club has established a “Kendal Binns Foundation Reserve” whereby 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 ($3,211) (2018: $6,673) were transferred into / (from) the reserve.

2019

2018

$

$

Opening Balance of Kendal Binns Junior Foundation Reserve

21,989

15,316

Contribution / (Utilisation) during the Year

(3,211)

6,673

Closing Balance of Kendal Binns Junior Foundation Reserve

18,778

21,989

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.

$

PostEmployment Benefit $

584,539

-

584,539

630,970

36,865

667,835

Short-Term Benefits

Total $

2018 Total Compensation 2019 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 2019

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 2019

2018

$

$

181,402

2,283,088

353,607

62,439

(18,182)

(1,500)

Depreciation

405,551

419,935

Provision for Employee Benefits

(84,583)

48,008

Provision for Impairment of Clubhouse Assets

23,529

52,171

Amortisation of Tower Rental Income Received in Advance

(36,800)

(36,800)

Net Cash Provided by Operating Activities

643,122

544,253

(503,655)

(2,650)

Cash Assets

b) Reconciliation of Cash Flow from Operations . with Net Surplus for the Year

.

Net Surplus for the Year Add/(Less) Items Classified as Investing/ Financing Activities: Profit on Sale of Non-Current Assets Add/(Less) Non-Cash Items:

before Change in Assets & Liabilities

Change in Assets and Liabilities (Increase)/Decrease in Receivables (Increase)/Decrease in Inventories

14,703

7,560

(Increase)/Decrease in Other Assets

(100,822)

(42,008)

Increase/(Decrease) in Accounts Payable

383,442

(15,402)

Increase/(Decrease) in Other Liabilities

624,103

(380,152)

1,060,893

111,601

Cash Flow from Operations

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 2019 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.

2019 Footnote

2018

Net Carrying Value

Net Fair Value

Net Carrying Value

Net Fair

$

$

$

$

Value

Financial Assets Cash and Cash Equivalents

(i)

181,402

181,402

2,283,088

2,283,088

Trade and Other Receivables

(i)

552,961

552,961

49,306

49,306

734,363

734,363

2,332,394

2,332,394

Total Financial Assets Financial Liabilities Trade and Other Payables

(i)

686,967

686,967

303,525

303,525

Borrowings

(i)

2,050,218

2,050,218

-

-

2,737,185

2,737,185

303,525

303,525

Total Financial Liabilities

The fair values disclosed in the above table have been determined based on the following methodologies: (Cash and cash equivalents, trade and other receivables and trade and other payables are short-term instruments in inature 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.

Borrowings includes $2 million drawn against a $3 million bank facility. The current drawings interest period applies until 22 October 2019 at which time it will be reset for a period of between 30 and 180 days at the discretion of the Club.

Borrowings also includes commercial loan equipment finance for three items of course equipment. Equipment loan finance is taken over a period of five years. The carrying value of equipment finance does not include future financing costs and as such carrying value is equivalent to fair value.

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 2019 NOTE 17: CAPITAL AND LEASING COMMITMENTS

Operating Lease Commitments The Company’s future minimum operating lease payments are as follows: 2019

2018

$

$

Within 1 Year

59,747

60,372

1 to 5 years

154,807

203,191

214,554

263,563

Minimum Lease Payment Due

Lease expense during the year amounted to $64,786 (2018: $67,636) representing minimum lease payments. The equipment lease commitments comprising golf cart and photocopier leases are non-cancellable operating leases with lease terms of between four and five years.

Equipment Finance Commitments 2019

2018

$

$

Within 1 Year

12,758

-

1 to 5 years

43,589

-

56,347

-

6,129

-

50,218

-

Payable – Minimum Repayments

Less: Future Finance Costs

Equipment finance commitments are shown in Borrowings (Note 11) as current borrowings of $10,379 (2018: Nil) and non-current borrowings of $39,839 (2018: Nil)

NOTE 18: 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.

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 2019 NOTE 19: 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 2019 there were 1,278 members.

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

NOTE 20: CONTINGENT LIABILITIES There are no contingent liabilities that have been incurred by the Company in relation to 2019 or 2018.

NOTE 21: COMMITMENTS At 30 June 2019 the club was committed to ongoing costs related to the clubhouse construction of $704,000 which will be incurred and paid in the 2020 financial year.

NOTE 22: CLUBHOUSE UPGRADE PROJECT During the financial year the Company received $19,330 from donations to a foundation project established through the Australian Sports Foundation (ASF) for donations by members. Funds received are being used to assist with payment for the Clubhouse upgrade.

NOTE 23: EVENTS AFTER THE BALANCE SHEET DATE During the financial year the Club received $70,000 from the Club’s insurers to offset initial costs incurred related to the Storm damage from December 2018. Subsequent to year end the Club’s insurers have accepted a tender for the repairs to the 10th bridge. Following this decision the insurance claim has been finalised and forwarded to the insurer. The Club does not expect to incur any costs related to the storm damage claim in the next financial year which will not be recoverable from the insurer.

Subsequent to year end the Club has been successful in renegotiating the NAB borrowing facility. The facility has been increased from $3 million to $3.85 million and will reduce to $2.35 million in stages between 2020 and 2022.

Prior to 2022 it will be necessary to arrange appropriate borrowings for the future.

There have been no other significant events since the end of the financial year up to the date of this report.

The financial report was authorised for issue on 28th day of August 2019 by the Board of Directors.

NOTE 24: 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

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SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2019 2019

2018

2,721,502

2,857,466

Interest Received

10,148

37,485

Finance Fees Received

46,617

42,346

Other Income

8,639

18,923

Gain on Disposal of Property, Plant & Equipment

18,182

1,500

2,805,088

2,957,720

Sales

1,268,744

1,798,730

Cost of Goods Sold

(519,295)

(706,504)

Gross Margin

749,449

1,092,226

59.1%

60.7%

Salaries and On Costs

(768,455)

(990,866)

Other Direct Expenses

(96,711)

(111,419)

Bar & Catering Expenses

(865,166)

(1,102,285)

Room and equipment hire and other function revenue

16,700

53,381

Surplus / (Deficit)

(99,017)

43,322

Equipment & Merchandise Sales

437,796

533,744

Cart Hire Revenue

181,672

177,479

Services Revenue

158,927

155,703

Pro Shop Income

778,395

866,926

Cost of Goods Sold – Equipment & Merchandise

(298,920)

(344,416)

Cart Hire Running Costs

(67,606)

(60,880)

Services Costs Including Teaching Commissions Member Benefit Expense – Balls, Gloves, Lessons & Equipment Cost of Goods and Services

(66,567)

(74,992)

(15,932)

(23,843)

(449,025)

(504,131)

Gross Margin

329,370

362,795

42.3%

41.8%

Salaries and on costs

(347,821)

(334,872)

Other direct expenses and depreciation

(24,430)

(20,532)

Pro Shop Expenses

(372,251)

(355,404)

Surplus / (Deficit)

(42,881)

7,391

SUBSCRIPTIONS AND OTHER OPERATING INCOME Subscriptions

Surplus BAR AND CATERING TRADING STATEMENT

Margin % Less:

PRO SHOP TRADING STATEMENT

Margin % Less:

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2019

2019

2018

Member Competition Fees

300,751

347,419

Member Green Fees

36,722

31,214

Corporate Green Fees

125,861

130,727

Visitors Fees Golf Services Income

121,945 585,279

133,740 643,100

Member Benefits – Visitor Passes & Business Golf

(78,273)

(94,555)

Cost of Services

(78,273)

(94,555)

NSWGA and WGNSW affiliation fees

(69,106)

(69,001)

Representative players expenses

(24,603)

(33,101)

Talent development

(6,115)

(4,641)

Trophies and prize vouchers

(60,197)

(53,847)

Salaries and on costs

(86,500)

(84,743)

Fixture book, bag tags and score cards

(10,846)

(8,845)

Expenses

(257,367)

(254,178)

Surplus

249,639

294,367

(1,018,799)

(1,003,627)

(51,975)

(24,675)

GOLF SERVICES

COURSE Salaries and on costs Staff training, catering and uniform costs Equipment repairs and maintenance

(85,178)

(64,332)

Course maintenance materials

(195,020)

(200,272)

Water usage

(10,600)

(18,800)

Fuel and energy costs

(59,018)

(50,962)

Depreciation

(95,359)

(100,263)

Other course expenses

(134,226)

(126,732)

(1,650,175)

(1,589,663)

(82,465)

(30,377)

(1,732,640)

(1,620,040)

Operating Costs

(127,371)

(128,703)

Depreciation

(92,196)

(136,790)

(219,567)

(265,493)

(1,952,207)

(1,885,533)

Improvement projects Water reclamation plant

Total Course Expenses

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2019 2019

2018

Locker Fees

3,540

3,162

Total Income

3,540

3,162

Catering entertainment and social costs

(46,107)

(54,258)

Building maintenance costs

(100,147)

(110,592)

Cleaning and laundry costs

(107,526)

(129,139)

Depreciation

(190,079)

(145,923)

Salaries and on costs

(26,950)

(47,475)

Other house costs

(17,236)

(19,188)

Total Expenses Net House Expenses

(488,045) (484,505)

(506,575) (503,413)

Salaries & on costs

(552,075)

(566,880)

Interest Paid

(49,466)

-

Finance Costs

(50,811)

(30,464)

Depreciation of office equipment

(20,683)

(29,734)

Insurance

(64,742)

(61,413)

Postage and telephone

(25,203)

(29,045)

Audit and accounting fees

(20,550)

(20,215)

Computer expenses

(67,405)

(62,521)

Printing and stationery

(16,677)

(23,679)

Marketing and advertising

(60,395)

(60,428)

Other expenses

(75,296)

(75,447)

(1,003,303)

(959,826)

(527,186)

(45,972)

Telecommunications Tower Rent

48,784

48,421

Entrance Fees

80,455

90,114

Forfeited F&B Levies

18,930

15,374

Clubhouse Upgrade Levies and Donations

727,102

-

Write Down in Clubhouse Assets

(23,529)

(52,171)

Total Non-Operating Revenue and (Expense)

851,742

101,738

SURPLUS ATTRIBUTABLE TO MEMBERS

324,556

55,766

HOUSE & LOCKER ROOMS

ADMINISTRATION

Administration Expenses

OPERATING SURPLUS / (DEFICIENCY) FOR THE YEAR

NON-OPERATING REVENUE AND (EXPENSE)

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