Pennant Hills Golf Club Annual Report 2019-2020

Pennant Hills Golf Club Limited

A N N U A L R E P O R T 2 019 / 2 0 20

ABN 12 000 037 856

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

Mr. Stephen Walker

Vice-President:

Mr. Michael Rowan

Captain:

Mr. Chris Pragnell

Hon. Treasurer:

Mr. David Leach

Directors:

Mrs. Margie Dearlove, Mrs. Sue Fabian, Mr. Graeme Martin, Mr. Clayton Rowston & Mr. Greg Winters.

COMMITTEES Planning & Finance:

David Leach (Chairperson), Margie Dearlove, Chris Pragnell, Clayton Rowston, Michael Rowan & Steve Walker

Course & Playing:

Chris Pragnell (Chairperson), Sue Fabian, Sally Moffat, Clayton Rowston, Greg Winters & Steve Walker

Membership:

Michael Rowan (Chairperson), Sue Fabian, David Leach, Graeme Martin & Steve Walker

House:

Margie Dearlove (Chairperson), Graeme Martin, Judy Trickett, Greg Winters & Steve Walker

Ladies Committee:

Judy Trickett (President), Sally Moffat (Captain), Janet Shand (Secretary), Sally Gooley (Competition Manager), Anne Eldridge, Ann Elsley, Jenny Harvey & Susie Wales

Life Member:

Mr. Tony Gresham

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 I concluded last year’s report by saying I hoped to make this year’s report shorter, and the bottom line correspondingly larger. I am glad to say we have improved this year to an operating deficit of $199K with an overall surplus of $348K. The comparable figures last year were a $527K operating deficit and a $325K surplus (if we exclude the one-off clubhouse levy, a deficit of $402.5K).

2019/20 has been quite extraordinary, so useful comparisons are difficult to draw: But a close look at the Summarised Trading Account demonstrates that we have been fairly successful at keeping close control on costs while driving operating revenue when and where we could.

I noted in the July Update that JobKeeper helped. The accounts show that the Club received $443K in Government assistance, of which $372K was from JobKeeper. But we had to expend some $137K in wages for casual staff who could not otherwise have been retained, and permanent staff whose hours may otherwise have had to be reduced, so the net JobKeeper benefit was more like $235K. Apart from the financial impact, we have been able to retain our valued workforce as a result, and we should all be grateful for that. A fuller explanation of our financial position is in Treasurer David Leach’s report.

It is an understatement to say it has been a difficult year. The pandemic has changed our lives, and the way we live them, and looks like continuing to do so for some time. The impact on the Club is only a small part of that. But it has obviously affected the Club’s operations and it is my duty to report on that impact.

The year started well with the clubhouse completed and a well-attended gala opening function. We were able to draw a line under the completion by reaching a mutually acceptable settlement with the builders on outstanding contractual issues.

Only the asbestos liability issue between us and the consultants remains open. Our lawyers have lodged a claim. I would simply remind members that the claim relates only to damage to the club caused by the failure to detect friable asbestos in a timely way. We cannot recover the cost of the asbestos removal itself, some $670K, which was always going to be our responsibility.

In early 2020, the course was in great condition, and members were making full use of the excellent new facilities, and external bookings started gradually to recover. The pandemic then hit, with external golf events gone and the clubhouse closed and not re-opening until June 1st. Fortunately, contrary to earlier indications, we were able to continue golfing.

From March into June 2020, we suspended Board and Committee operations and went to a “war” footing.

The General Manager, in consultation with the President, was authorised to take whatever COVID related decisions were necessary in running the Club. In June we were able to move away from this unprecedented step and greater stability allowed us to resume normal operations. Re-emergence of the pandemic, especially in and from Victoria, again threatened to constrain operations from mid July.

On the course, thanks to a great effort by our course staff, the bunker refurbishment program was completed (only 16A to go) before the due October target. It has markedly improved the playability of all our bunkers.

Trialling of creeping bent grasses Pure Distinction and Crystal Blue Links is well underway, with the 3rd green and 16A (sadly partially only) re-turfing now done. Next year we will be in a position to re-turf an additional green, most likely the 8th, with Crystal Blue Links, a similar bent strain with slightly better salinity and shade tolerance, and likely lower maintenance needs. This will facilitate a thorough on-site comparison of the two strains, leaving the remaining 16 greens poa pending a complete rebuild, when a final decision on the best choice (it might even be poa!) can be made.

The Board has continued to review the planned capital expenditure program over the next 3-5 years.

Provided our financial position continues on its current trajectory, we may well be able to fund a significant part of that program from our own resources, with the remainder funded through the PHGC Foundation.

During the year we maintained contact with the Gary Player organisation with a view to commissioning a concept plan for a redesign and rebuild of our green complexes (greens, bunkers and surrounds), and also to investigate the feasibility of reconfiguring holes 1, 2, 3 and possibly 5 to reduce the balls out of bounds risks. Our greens are very old, inadequately drained, and subject to disease. Re-building them, and the allied work on the bunkers and surrounds, is vital for the longer term viability and competitiveness of our Club. The redesign and rebuild, especially of the sub-surface structures and drainage, is the critical aspect, Pennant Hills Golf Club Ltd ABN 12 000 037 856

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more so even than the grass selection. The engagement with the Player Group was finalised in July, and subject to easing of international travel restrictions, the schedule is to have the concept plan completed in Autumn 2021. A member consultation phase will then follow.

The Tunnel water project remains a watching brief, with close relations developed with NorthConnex and Transurban. The volume of tunnel water flows will become clear in 2021/22. We can then make a call on the viability or otherwise of proceeding.

With the help of Phil Stanton we are close to finalising a concept design for the Ex Service security gates for assessment.

We now have a very marketable product in the form of a great new clubhouse, an excellent and improving golf course (with more to come), and most of all a great Club. Our major issue, along with some but not all major metropolitan clubs, continues to be our falling membership numbers. This has been a consistent refrain in Member Updates throughout the year. Our old model of relying on member introductions to source new members is not driving new member numbers sufficiently, and efforts to advertise using social media and other media have been slow to take effect.

Although our subscription income increased to $2.9m this year from $2.7m last year, our member numbers have been falling too far and too fast for any degree of complacency. Demand for new memberships at least showed a steadily rising trend in the last few months of the year, which has continued. Our Try Before You Join initiative seems to be biting and yielded 27 new memberships to 30 June. Details are in Membership Chair Michael Rowan’s report.

In August we announced introduction from 1 October 2020 of a Limited Playing category with greater golf access rights, available to existing 2 Day members, and those who have gone to Deferred or Social, or resigned, in recent years. Initial pricing is around 70% of 7 Day membership. 2 Day membership will not be offered from 1 April 2021. At that time the new Limited Playing category will also be opened to current members of all categories. The total number of members in the new category is capped.

We have seen consistent improvement in our hospitality standards throughout the period. We now have a standard of excellence not achieved by many golf clubs, and Barnaby and his team have worked closely with House under Chair Margie Dearlove to make the Club a hive of activity.

During the year we lost Life Member Mollie Sutherland. Mollie made a great contribution to women’s golf, both here and on the broader level, and will be fondly remembered. Fuller details are set out in subsequent sections of this Annual Report.

I very much regret that I will not be standing as President again in October, and will step down from my second stint in the role at the AGM. Unfortunately, Treasurer David Leach is in the same position and is also stepping down. David has been an outstanding Treasurer and colleague, and he will be missed. His eagle eye has ensured we have been able to keep our finger on the pulse and maintain very tight control on costs, and also manage our facilities with our bankers very effectively. We are fortunate to have had such a strong finance function with Craig, Barnaby and David as Treasurer, and that has made my job so much easier. David’s broader policy input has also been invaluable. So, thank you David.

There are some other individuals who I would like to thank for their great contributions to the Club and their personal support during my term of office.

Shortly after my return as President the Club needed to find a new General Manager. We were very fortunate to be able to prise Barnaby Sumner loose and he was able to join us almost immediately. Thank you Barnaby for the outstanding job you have done and continue to do in controlling costs, driving activity and building teamwork for the Club. The entire team under Barnaby’s control has performed extremely well. They are thanked individually in the various Committee Chair reports, so I will not repeat that here.

This Club is fortunate to have a number of members who volunteer their time and expertise generously, and I have mentioned a number of them in earlier reports. Throughout the clubhouse re-build and its aftermath, and in projects since, Rob Stevenson in particular has been a significant benefactor to the Club. His ongoing contribution is greatly appreciated.

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Thank you also to retiring directors Margie Dearlove and Greg Winters. Margie’s energy and organising ability has been invaluable in her role as Chair of House. The excellent Gresham tribute event, amongst others, showcased her talents.

My thanks to Captain Chris Pragnell for his consistent support and good humour during my term of office.

Thank you also to Ladies’ President Judy Trickett and Ladies’ Captain Sally Moffatt for their co-operation.

The Club has significant challenges ahead, but we are now well placed to meet them. We have identified the measures we need to take and driven execution of our strategy hard. The projects to get us there are being actively managed.

It has been a privilege to serve again as your President, and I thank members for their support during my tenure. I wish incoming President Michael Rowan, continuing Captain Chris Pragnell, and the new Board every success.

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 2020 the Club recorded a Surplus attributable to Members of $348,497* compared to a Deficit in the previous year, excluding Clubhouse Upgrade Levy, of $402,546.

Total Revenue for the year was $6.597 million*(previous year 5.638 million) and Total Costs and Expenses were $6.268 million (previous year $6.008 million). * Both the Surplus and Total Revenue include Government Grants (COVID 19 Stimulus) of $443,063.

Major Developments during the year The year was marked by two key events. Firstly, in July 2019 the Club became fully open for business for the first time in 18 months following completion of the Clubhouse Project and secondly, from March 2020 onwards the Club had to cope with the emergence of the COVID-19 pandemic.

The Club had a mere 8 months in which to rebuild the business in the new Clubhouse before effectively closing to all external events yet again.

The financial results in more detail It is clear from the above that yet again the year ended 30 June 2020 was, as was the case in the previous year, not a representative year. It was not a representative year in a business sense and it was not a comparable year in a financial or accounting sense. A number of unusual items make it difficult to provide a meaningful comparison between the two years. The important message to convey is that in very difficult circumstances the Club ended the year in a much better position than it started the year. The Club absorbed both the burden of financing the largest project in the Club’s history and the unique circumstances of a completely unforeseen pandemic – all in the space of twelve months.

The table below provides comparative information which members may find of interest.

2020

2019

348,497

324,556

Clubhouse Upgrade levy and donations

(1,887)

(727,102)

Government Grants COVID-19 stimulus

(443,063)

-

Entrance fees *

(107,182)

(80,455)

Tower rent

(49,129)

(48,784)

Forfeited levies

(21,809)

(18,930)

(623,070)

(875,271)

75,118

23,529

(199,455)

(527,186)

Depreciation & amortisation

612,935

405,551

Comparable Net Surplus / (Deficit) before depreciation

413,480

(121,635)

Surplus attributable to Members Add Back:

Sub-total Write down in redundant assets Operating Deficit

* Refer next page for change in accounting standard treatment of entrance fees Pennant Hills Golf Club Ltd ABN 12 000 037 856

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New Accounting Standards The Accounts reflect the adoption of new Accounting Standards as set out below.

Accounting treatment of Entrance Fees (AASB 1058 and AASB 15) Entrance fees paid by members joining the Club have historically been taken to profit in the year of receipt.

The new revenue recognition standards require entrance fees to be spread over the life of membership.

This requires the Club to determine the average years of membership; this has been assessed at 10 years.

The impact on the Income Statement for the year ended 30 June 2020 has been to increase reported Entrance Fee income by $42.5K. In broad terms this credit arises from the fact that more members left the Club than joined during the year and that a high proportion of those who left had been members for less than 10 years.

The Balance Sheet also reflects significant changes to Retained Earnings and Deferred Income (Note 10 to the Accounts) flowing from the adoption of these Accounting Standards.

Accounting treatment of leases (AASB 16) This new Lease Standard requires all leases, including operating leases, where ownership is retained by the lessor (in PHGC’s case the golf carts and items such as printers) and the monthly lease cost is treated as an expense, to be treated in the Accounts as Finance Leases.

All PHGC’s financed course equipment is under finance leases where, unlike operating leases, the assets are the Club’s property and are retained by the Club at the end of the lease; these assets are depreciated and the cost of financing is paid off monthly over the life of the lease.

The impact on reported results of this change in treatment is insignificant.

Revenue from Members Subscriptions Member subscriptions provided gross revenue of $2.892 million, an increase of $170,000 on the previous year.

Revenue from Golf and Professional Shop Services Revenue from Golf and Professional Shop services was $908,050 compared with $925,878 in the previous year. These revenues comprise all golf playing fees, cart hire, golf lessons and equipment storage. This is a creditable performance in the light of the pandemic severely affecting visitor and corporate fees in the last quarter.

Bar and Catering The table below provides a good example of how both revenue and profitability from Bar and Catering activities have improved substantially in the space of a year, despite the pandemic setback.

Revenue is well up, the trading margin is substantially up and a net surplus has been delivered compared to a deficit in the prior year.

Sales Revenue Cost of Goods Sold Margin Expenses Net Surplus/(Deficit) Pennant Hills Golf Club Ltd ABN 12 000 037 856

2020

2019

$,000

$,000

1,538

1,269

580

519

62.3%

59.1%

938

849

20

(99) 6

Expenditure Total expenditure increased from $4,962K to $5,218K (5.15%), year on year. This increase is wholly attributable to two non-cash items, namely; a higher charge for depreciation ($207K) primarily relating to new Clubhouse fixtures and fittings, and a larger asset write down ($52K). The asset write down arises from the carrying cost of earlier expenditure on a course redesign being regarded as redundant in the light of an alternative source being pursued for a revised design solution. Adjusting for these two items, there was a small decrease in annual expenditure as shown in the table below.

Increase / (Decrease)

2020

2019

Total Expenditure

5,217,667

4,961,868

255,799

Depreciation

(612,935)

(405,551)

207,384

(75,118)

(23,529)

51,589

4,529,614

4,532,788

(3,174)

Write down redundant assets Expenditure net of depreciation and asset write down

Whilst expenses have been stringently controlled throughout the year and throughout the business it is worth highlighting the reduction in course expenses which reduced by 5.2%, year on year (11% after adjusting for the $114K in bunker renovation costs which were covered by the course development funds).

It is also worth noting that the interest charge was higher due to higher average borrowings offset by a lower interest rate, and insurance premiums were also substantially higher.

Cash flow from operations Net cash flow from operations, being the net surplus for the year adjusted for non-cash items (mainly depreciation) was $973,559 compared with $1,060,893 in the prior year which included the capital levy of $727,102. The final payments on the Clubhouse project were made during the year, these amounted $736,899.

Balance Sheet Bank borrowings at 30 June 2020 were $1.9 million, $100K less than the previous year end. The NAB facility reduced from $3.85 million to $3.6 million in April 2020 and this will reduce further to $2.35 million over the next two years to June 2022, as planned, when the facility will expire.

Course Development Fund The Course Development Fund which was initiated during the prior year had provided a cumulative $124K by 30 June 2020. These funds have been well utilised in the bunker refurbishment program which will be complete by October 2020.

Conclusion In conclusion I would again like to thank Craig Usher, Finance Manager for his unstinting contribution and prodigious work ethic. I also wish to thank all the members of the Finance & Planning Committee for their support and patience during another difficult year.

Having given the matter much thought, I believe it is now time for a younger person to take on the role of Treasurer and therefore I will be stepping down at the AGM. I thank all directors with whom I have served over the past two years for their considerable support and I particularly thank Steve Walker, President for the faith which he has shown in me throughout.

David Leach

Honorary Treasurer Pennant Hills Golf Club Ltd ABN 12 000 037 856

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CAPTAIN’S REPORT Three Hundred and Eight Seven (387) days after the 2019 Saturday afternoon storm damaged the bridge over the 10th carry, we were able to access the fairway in the normal manner. Eighty-five (85) days later our Club was forced to close.

To say that the last 12 months have been thrown into disorder in terms of golf is putting it mildly. Yet due to an outstanding effort by a strong management group, the disruption has been kept to a minimum. Well done to them.

Rather than reviewing the past 12 months from a course perspective we will focus on the broad plan for next year.

Course improvement is the drive of the Course and Playing Committee. Subject naturally to budgetary constraints, the weather and COVID-19 the focus will be:  

  

Continue the refurbishment of the fairway bunkers. Completed by the October long weekend.

Re-turf the third (3rd) green with ‟Pure Distinction” an A1/A4 bent grass derivative, from the Greens Nursery.

Re-turf bare patches on holes 10-18. Bare areas will become an annual focus and holes 1-9 will be re-examined for attention Resurface black rubber toping, behind the first tee from roughly the flagpole to the old Proshop.

Drain the Green Nursery (12th carry Sand Groove over the existing Ag lines on fairways:



o 1st green end o 3rd tee end o 5th green end o 12th green end o 13th middle left o 15th tee end o 16th green end o 17th green end Install drainage lines on the following fairways:



o 2nd right side midpoint o 3rd left side green end o 4th the carry o 6th rear of green o 11th mounds o 12th green end o 13th left side midpoint 16th the carry Mulch right side of 3rd fairway from short rough to fence line.



Course presentation is vital. With 93 acres to tend, it is near impossible for our 11 green staff to be on top of every aspect. On behalf of all PHGC golfers our thanks to all the girls and boys who give so unselfishly of their time to assist with the course presentation.

Lesley’s Gardening Ladies are: Helen Sugden, Lucie Gabb, Margie Dearlove, Judy Einberg, Tina Lee, Adriana d’Orazio, Chrissie Grier, Lyn Stanton, Sue Fabian, Joan Eyles, Gail Holsgrove, Carole Whitehouse, Judith Grant, Simone Lester, Ann de Carvalho, Maggie Rowe and Alison O’Sullivan.

Winters Working Warriors are: Peter Cook, Ron Fellows, Vasco de Carvalho, Alun Roberts, Gordon Herriot, Scott Cooper, Peter Barber, Cyril Denny, Stuart Dickson, Clas Einberg, Paul Murphy, Tim Whitney, Mick Kevin, David Leach, Garrett Dwyer, Eugene O’Reilly, Bob Wilton, John Wotton and Lionel Jackson.

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Individually and collectively your ‟blood is worth bottling”.

As your representative for matters concerning ‟grass and sand”, my role would be extremely difficult without a strong working relationship with the Superintendent, Richard Kirkby. Not only is he skilled in personnel management, agronomy and horticulture, he still maintains, after 26 years, an intense zeal to ensure our course is exhibited and developed to the highest standard. To you Richard, 2IC Shaun Bowden and your entire team, please accept our gratitude for 93 acres of playing and visual pleasure.

I wish to thank our golf shop team for their effort and support to members over the past 12 months.

Effectively and seamlessly led by Director of Golf, Neil Rolfe. The enthusiasm and competence demonstrated by all his team makes visiting the shop a golfer’s delight. To Andrew Potter, my thanks for your diligence and administrative ability. You are the Club’s ‟Radar O’Reilly” and seem to anticipate what needs to be done before anyone else (me) has even considered the question.

It is difficult to understate the wonderful job Rachel Bailey does for the Club. Her ability to impart the golfing skills she has developed to her students is quite special. Additionally, she runs a Junior Program, which not surprisingly, has a healthy waiting list. Rachel is now joined by Liam Sheils who is developing his own loyal band of supporters. It would be interesting to know how many of their students have been announced as winners at either Saturday or Wednesday presentations.

To Andy, Jared, Olivia, Max and Keith you make the playing of golf at our Club so much more enjoyable.

There are four very special members who tirelessly give of themselves year after year. Chris Allen, whose amazing knowledge of anything golf, can’t be underestimated. David Cunneen who assists whenever asked, at no small cost to himself. Cyril Denny, who is the first to volunteer when help is requested. Rob Stevenson, who just gets it done when it’s needed to be done, again at rather a large personal cost. To each of you we are in your debt and I hope our gratitude for your support to the Club, is in some way compensation for your extremely generous contribution.

The Club’s History Group, Ron Harper, Ann Crisp, John Wall and Bruce Jones deserve a special thank you for the production of the ‟Then and Now“ part of the ‟living history” series. The information the group has gathered over the years has enabled Bruce Jones to weave his production magic. They are a dedicated team who work tirelessly to preserve our Club’s history then bring it to life for all to enjoy.

Five teams (mostly men but some ladies) were selected in Senior representative golf this season. I will leave comments regarding Ladies representative golf to our Lady Captain, Sally Moffatt.     

Major Pennants Masters Pennants PACK Cup PACK Plate Mixed Pennants

(PACK is – PHGC-Pymble – Avondale - Concord – Killara)

MAJOR PENNANTS 2020 Andy Richards (captain) David Bailey, Matthew Davidson, Jared Dries, Murray Fogarty, Mitch Gerdes, Damian Maguire, Hamish Murray, Grant Naylor and Gabriel Ormaechea.

The team is currently preparing for their relegation match against Pymble to be played at Home on 6th September and Away on 20th September.

The Club wishes the team every success.

MASTERS PENNANTS 2020 The Masters Pennants competition was an unfortunate COVID-19 casualty, without any play possible.

PACK Cup 2020 David Blackshaw, David Edward, Kell Ferguson, Hugh Gerdes, Neil Gordon, Ross Howarth, Damian Maguire, Rob Stevenson, Jon Underwood and Tim Whitney.

The rebuilding of the team continues. The highlight of the season was Rob Stevenson being undefeated.

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PACK Plate 2020 Alex Bennie, Darcy Cluff, Vasco de Carvalho, Joe D’Andreti, Graham Dawson (captain – undefeated), Terry Gilchrist, Andrew Mowat, Sebastian Trouncer, Keith Thornton and Greg Winters.

Congratulations to the team. They won the coveted Plate, undefeated.

Mixed Pennants 2020 27 members represented the Club in this popular handicap match play competition. Whilst unable to reach the heights of 2019, they did manage a 3rd in their division.

Junior Golf We had teams in Junior Pennants, Encourage Shield and My Golf Junior League. These competitions are a sound preparation for higher level golf and a successful season was enjoyed by each of the teams The MGJL team defeated Cumberland in the inaugural interclub. On the Club’s behalf, please accept our warmest congratulations.

Special Thanks Greg Winters - Manager Major Pennants Chris Allen – Manager PACK Cup Keith Thornton & Graham Dawson – Manager/Captain PACK Plate Neil Gordon - Manager Mixed Pennants David Murray – Manager Junior Pennants Peter Sherry – Manager Encourage Shield Murray Fogarty – Manager My Golf Junior League You each deserve our gratitude and you have it.

This report is repaired as at 30/06/2020. We are in the winter months and it is wet. Not ideal golfing conditions, yet perfect for slow play.

I wish to draw to your attention the important and often difficult issue, Pace of Play. I quote from a report presented by Dr. Vasco de Carvalho: ‟the impact of slow play is not unique to our Club and the experience of others demonstrates clearly how hard this issue is to address meaningfully. Ultimately, we all play to enjoy the experience and feeling unfairly rushed or harassed detracts from our enjoyment. However, golf is played in the context that other golfers are trying to also have a good time and the culture that should be at the forefront is respect for the game and the course in the context of having individual responsibilities and consideration for others in the field.”

What a wonderfully insightful piece.

My gratitude to colleagues Sue Fabian, Sally Moffatt, Clayton Rowston, Steve Walker and Greg Winters for their input and guidance over the year. Thanks most importantly to you the members for your friendship and ongoing support.

Chris Pragnell

Captain

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Event Club Champion A Reserve Champion B Grade Champion C Grade Champion Senior Champion Junior Champion Pennant Hills Cup Foursomes Championship 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 60 and Over Left Hander’s Cup Sep Johnston (February) Eclectic August Eclectic (Wednesday) Vic Kendall Tyro Trophy

Winner Andrew Richards David Garnsey Paul Jackson Ralph Waters Greg Wilson Matthew Davidson Joel Wheatley – Castle Hill Country Club Hamish Murray & Andrew Richards Andrew Mills & David Sefton Andrew Munro Scott Bailey Ross Howarth Shahir Mikhael James Antonenas Angus Stapleton Damian Maguire Andrew Richards John Eldridge Hannah Sneath & Joe Chehade Craig Jack Ian Ritchie Paul Watts John Davies Bruce Ebert Lachlan Corbett

HOUSE REPORT The major event that has occurred since the last House report was the opening of the whole clubhouse to the members. It is a joy to walk into the fresh, new, spacious surroundings, tastefully decorated with modern, comfortable furnishings.

The verandah area, in particular, has proved to be extremely popular, and members have enjoyed a variety of events in that setting from intimate dinners to après-golf drinks while listening to some beautiful music and watching a spectacular sunset.

The re-opening brought with it new demands on our hospitality staff. Collectively, we are discerning customers so they were asked to create innovative offerings from a humble sandwich to a pizza and pasta night graduating to a 3-course specialty dinner for 300 people or a 10-course degustation menu with matching wines. No matter the type of offering, the service levels were aimed at being first class. The team has achieved very high success rates on all levels and we thank them all for their courteous, friendly and diligent attention to detail.

We now have a lovely venue which is easily adaptable to many different types of events. Nicole Tanner is busy re-connecting with outside organisations who have previously taken advantage of our facilities. It is in our interest to grow a healthy income stream from “outside” functions especially as our enjoyment of our club by members will no longer be disturbed by visitors also enjoying our facilities. The ambience of the Founder’s Bar adjoining the Beecroft Room with an outlook onto the course is second to none.

Not only is the interior of our Club very stylish, the new gardens and signage surrounding the building are superb. We must thank Rod Fletcher for his creativity especially with his skill with sandstone and the development of the gardens around the building. Our thanks are also due to Rob Stevenson and David Cunneen for their contribution to various areas of construction and printing of honour boards and other signage. I must also draw attention to our ever-willing members who regularly participate in gardening working bees and other voluntary capacities. We are indeed fortunate to have such generous people amongst our membership.

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We are progressing with plans to complete the display of honour boards and significant historical items and memorabilia and here I must thank Ron Harper, Ann Crisp, John Wall and Bruce Jones for their tireless care and protection of our historical records. In particular, Bruce has produced some very interesting YouTube presentations of different aspects of our Club’s history. You are encouraged to view them if you haven’t already done so. Thank you Bruce for your service to our community.

During the year, we have seen some significant social events which have been hugely successful. These have ranged from golf competitions combined with a social event such as the Augusta Master’s Morning, Club Saturday and the Nagger’s Cup to an always popular Trivia Night, an elegant dinner dance to celebrate our new clubhouse and family events such as our family day with games and our children’s Christmas party.

These events have been well supported by our members and their families and we will continue to offer a variety of functions so that all of our members will have the opportunity to enjoy something which suits their particular interest.

The House committee has been very fortunate to work with our Hospitality Manager, Kristen Ramirez.

Kristen brings her creativity and enormous energy to every occasion as well as her quiet and careful direction to her staff to ensure the success of every function.

Our thanks also to our General Manager, Barnaby Sumner, who motivates and unites his team to achieve the best results possible. We are indeed fortunate to have excellent staff who allow us to gain the greatest joy from being a member of Pennant Hills Golf Club.

My thanks to my fellow Committee members, Greg Winters, Graeme Martin and Judy Trickett for their willingness to give of their time, creativity and expertise to our club. Special thanks must go to Steve Walker and Barnaby Sumner who have guided the club through a particularly challenging year.

Margie Dearlove

Chairperson, House Committee

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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MEMBERSHIP REPORT In Feb of this year the Board chose to increase subscriptions under the April 2019 membership restructure of between 6.2% and 8.3%. In addition, as is the practice in some of our peer clubs, it was decided to charge the Golf NSW affiliation fee directly to member accounts in July. These changes were announced in the President’s Update in Feb when COVID-19 was on the horizon but before the bewildering and catastrophic effects of the pandemic were widely known or comprehended.

The extent of the public health and economic costs of COVID-19 were much better understood and realised when subscription notices including increased house levy invoices became due on 31 March 2020. Despite the climate of uncertainty and community apprehension that existed, members responded magnificently and we were able to meet our budgeted membership revenue target. This reflects the strength of our membership and the value they place on belonging to Pennant Hills Golf Club.

Nevertheless, there were some members who faced difficult personal decisions and who finding themselves in unfamiliar circumstances chose either not to renew or to transfer from an active golf membership category to an inactive category by deferring their membership for the current year. The Committee were concerned that perhaps the narrow course access rights of 2 Day membership and the absence of any other golfing option being offered other than Full Membership might be, in part at least, responsible for attrition of some 2 Day golfers. Similarly, the cap on 6 Day may have influenced decisions made by both 6 Day and Full Members.

The Committee examined a number of possible options, undertook some extensive research and conferred with the full Board before running a workshop in search of the most effective and appropriate response. As announced in the recent President’s update, the Board later approved the introduction of a Limited Playing Category providing rights to competition play on Tuesday, Friday and Sunday as well as Monday public holidays together with rights to social golf on other days of the week. It is necessary to place a cap on Limited Playing in order to assure sufficient tee times for Full, 6 Day and Flex members wishing to play on Sundays and Fridays. The Board will regularly review this cap. 2 Day membership will not be offered in 2021/22.

Initially the Committee will make contact offering Limited Playing membership to those members who transferred to inactive categories or resigned their membership in the early stages of the COVID-19 pandemic. Subject to the cap, Limited Playing will then be available to all members in the 2021/22 membership year.

Subscription revenue is price times volume, without volume growth the price component comes under undue pressure. Pleasingly, recruiting activity has been strong, particularly in the latter two months of the year when 27 new members were welcomed to various active golf memberships.

The club has been conducting three recruiting programs that are providing a steady stream of enquiries that are converting to membership. The “Get Started” program” at a cost of $440 is an introduction to golf where participants are taught the fundamentals over an 8-week period. It is a memorable introduction to the game and under the guidance of our experienced PGA Professional coaches it develops skills and builds the confidence required to embark on a golfing future. The Club appreciates the energy and drive of the Pro Shop in managing the program, in particular Neil, Rachel and Liam. The Get Started program is followed by a “Get Started Plus” where those who are keen to get out on the course are assisted by members who accompany them on to fairways to help develop game skills and understand the protocols of playing golf. A fee of $350 is charged for this course.

Once participants have completed the Get Started and Get Started Plus programs, they are eligible to apply for membership. They, and others who are more experienced golfers and who may not be part of the introductory programs, are offered the option of “Temporary Flexible Membership”. This allows them to ease themselves in to competitive golf and to understand the rhythm at our club. This form of membership is only available for a 12-month period; the subscription fee equal to a Flexible member with a green fee of $35 applicable to each round that is played. After that, the golfer must join as a Full, 6 Day or Limited Playing member in accordance with the policies prevailing at the time. The more experienced golfers tend to immediately elect to enter the club as Full members.

In the latter half of the year new members met with representatives of the Membership Committee in the traditional induction format and along with their sponsor, were invited to dine at the Bistro for dinner. This Pennant Hills Golf Club Ltd ABN 12 000 037 856

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has proved to be an effective way of new members to meet each other and appreciate the social offering of our club.

MEMBERSHIP CATEGORY STATISTICS As at 30 June 2020

As at 30 June 2019

Male

Female

Male

Female

2 Day Member

65

21

80

26

6 Day Member

68

150

96

156

6 Day Member 21 to 25 Yrs

0

1

2

2

6 Day Member 26 to 30 Yrs

2

1

3

2

6 Day Member 31 to 40 Yrs

2

1

6

2

6 Day Member Over 80 Yrs

8

6

3

6

6 Day Member Senior

27

23

31

21

7 Day Life Member

1

0

1

1

7 Day Member

246

1

248

0

7 Day Member 21 to 25 Yrs

14

1

10

1

7 Day Member 26 to 30 Yrs

8

1

4

0

7 Day Member 31 to 40 Yrs

20

0

15

0

7 Day Member Over 80 Yrs

7

0

3

0

7 Day Member Senior

54

0

54

0

7 Day Member Special

3

0

4

0

7 Day Member U21 Yrs

50

16

54

16

Deferred Member

162

24

171

36

Flexible Member

66

5

85

8

Honorary Member

1

0

1

0

Social Member

54

61

63

63

Staff Member

4

1

2

2

862

313

936

342

Category

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

Christine Dean Ying Feng Eva Flowers Keith Hayes Betty Hughes Brenda Kennedy Glenn Langton Denis Lickley Margaret Roy Mollie Sutherland (Life Member) Warwick Watkins Jan Whitford Diana Winch Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Whilst we celebrate and appreciate the contribution made by all our departed members, we are especially moved to make singular mention of our Life Member, Mollie Sutherland. I note that she receives special and deserved mention in the Lady Member’s Report. To expand on that a little, she is one of the true legends of our club. Her energetic sponsorship of Ladies golf at Pennant Hills, NSW and the National level is quite remarkable. She was also a keen bridge player and enthusiastic participant in the famous Christmas concerts, as well as a generous contributor to the Kendall Binns Fund.

Mollie joined our club in 1959 and served on the Ladies Committee from 1964 to 1976 including terms as Secretary 1968, Captain 1971-2 and President 1973-76.

She was active within the NSW Ladies Golf Union where she was the Honorary Treasurer in 1970, State Selector in 1978 and served as both Vice-President and President in 1980 before her appointment as the NSW State delegate to the Australian Ladies Golf Union.

In recognition of her energies and work Mollie was elected as the first Lady Life Member of our club in 1988.

In 2001 Mollie was awarded the Australian Sports Medal as part of the Australian Honours List in recognition of her contribution to Women’s golf.

Mollie and her husband Jim initiated the Mixed Fourball Knockout at PHGC in 1966, they donated and presented the trophy until Jim’s passing in 1998, Mollie continued to donate the trophy until 2016. Mollie and Jim were influential in establishing strong ties with Royal Canberra through inauguration of the Sutherland Trophy, an annual event between both clubs from 1983 to 2000.

Michael Rowan

Chairperson, Membership

LADY MEMBERS’ REPORT All activities for 2019-2020 are detailed in the Ladies Annual Report.

Ladies Committee for 2019 - 2020 President: Captain: Secretary: Competition Manager: General Committee:

Judy Trickett Sally Moffatt Janet Shand Sally Gooley Jenny Harvey Annie Eldridge Susie Wales Ann Elsley

Pennant Hills Golf Club has experienced another year of significant change and challenges. The opening of the newly renovated areas of the clubhouse has enabled the Ladies committee to relocate from the previous temporary accommodation and utilise the club boardroom for our meetings and weekly administrative and planning activities.

The advent of the Covid-19 pandemic has impacted us all and created major disruption to community social and economic activities, however the superior management by our Board and administrative personnel at a local club level has meant that the changes to our club have been minimal. Our thanks are extended to the Board and all those in the Club’s administrative areas for their prompt access of all available government financial supports. Although the government imposed Covid-19 restrictions have limited many competition and interclub activities, weekly club golf has continued to be a relief from lockdown and isolation and has provided our members with much needed exercise and social interaction in a safe and secure environment.

As well as the major golfing trophy events that are held each year, the ladies run a number of competitions to encourage participation and enjoyment. The ladies have continued to support these Pennant Hills Golf Club Ltd ABN 12 000 037 856

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competitions and always enjoy the camaraderie of a team event. Some of these events are the Annual Fundraiser day, the High Tee Classic, Green Day and Beanie Day. We have been lucky that the High Tee Classic and Green Day were held just before lockdown restrictions came into place in late March 2020. The Veteran’s Visitor’s Day was held in 2019 but we were unable to hold our annual Visitor’s Day in June 2020.

Due to Covid-19, 2020 has been an unusual year where some of our regular events have not been able to take place. Golf NSW cancelled the Medal rounds and the Ambrose event earlier in the year. They then stated that both events could be played but the Ladies Committee decided to not play them in 2020 with only 2 medal rounds to play and the Ambrose event scheduled for June. One of our Board events, the Singles Knockout was not completed in 2020 as we play this event during the months of May/June. The Lexus of Parramatta Cup has continued throughout Corvid and we will be once again sending a team to the final against Castle Hill and Oatlands in October.

The Ladies Championships Finals Day was held in September in 2019. It was a beautiful day and many ladies enjoyed watching the match after playing in the morning. The match went to 37 holes so it was quite late by the time we were able to celebrate with our winners. Regardless, many spectators stayed to enjoy the high tea and bubbles.

The Mystery Day was held at Riverside Oaks in 2019. Whilst the Pennant Hills greens are being renovated a bus load of ladies travel to a mystery destination for golf and lunch. Thank you to Jenny Harvey and Janet Shand for organising another successful day. This year our annual Autumn greens renovation trip was at Nelson Bay for two days of golf and two nights of fun and frivolity. Many ladies have been heard saying it was our best trip ever. Thank you to Jenny Harvey and Sandra Murphy for organising it.

The Junior Development Program under the direction of our Teaching Professional, Rachel Bailey has been going from strength to strength. The Junior Program includes 21 boys and 19 girls from the ages 615. Rachel’s popularity and expertise has become so well known that next term this group is increasing to 50 with many juniors coming from other clubs. Some of the events they compete in are the Encourage Shield, Junior Pennants, Tyro, My Golf Junior League, Interclubs and Teens v Tweens. Special mention to Olivia Kerr and Hamish Murray, who have worked with Rachel. Olivia has accepted a Scholarship to Western Illinois University and will compete for the university as soon as she is allowed to travel. Hamish represented Jack Newton Golf in a tournament in Canada last year. Congratulations to these two members and we look forward to following their future in golf. We would like to thank the wonderful volunteers who help Rachel with her coaching sessions every Sunday - Nicki and Chris Howlett, Greg Winters, Andrew Lam, Peter and Anne Edwards and Kirk Dailly. Thank you to Rachel for the enthusiasm and dedication she continues to display with this program.

Rachel’s annual trip away was to go to New Zealand earlier this year. Due to travel restrictions this has had to be postponed and will take place in 2021.

The Pennant Hills ladies compete in the Northern Districts Pennant competitions each year and it has been very disappointing for them to not be able to play this year. The Silver II team completed most of their matches and the Bronze II team played one match before all Pennant competitions were cancelled for the year due to Covid-19. Rachel Bailey conducted her on-course training for these 2 teams and these ladies once again found these sessions invaluable. Our Pennant Hills ladies will be looking forward to the 2021 season.

Our 2020 Grade team consists of Olivia Kerr, Hannah Sneath, Mimi Elina, Monique Herman De Groot, Anne Eldridge and Mary-Jo Usher. The Grade team played 4 matches before Golf NSW suspended the competition. They will resume in August and we wish them good luck for the remainder of their matches.

We had Interclub Competition days scheduled against Castle Hill, Oatlands and Avondale in 2020.

Unfortunately, our contests against Castle Hill and Oatlands were cancelled but we are hoping to play the Interclub against Avondale in August.

We would like to thank the following people for refereeing on the Championship Day – Moya Shephard, Sue Fabian, Chris Allen, Neil Rolfe and Joan Eyles. Thank you to Tony Gresham for once again starting our ladies on this special day. Sue Fabian has given up many days of golf to referee our finals (rain, hail and shine) so a big thank you to her. She has also continued to support the ladies in their understanding of the golf rules.

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The Pro-shop under the leadership of Neil Rolfe provides a valuable service to the ladies and it is appreciated. The members can now enjoy a coffee whilst shopping for much needed golf attire. The expertise and encouragement shown by Neil, Rachel and Liam Sheils is invaluable. The game improvement days have continued to be popular as well as private lessons with our golf professionals.

Thank you to Keith Smith for starting the ladies during 2019 and early 2020. Thank you to Jarrod and Max for all you do for the ladies. A big thank you to Andrew Potter who has continued to be our ‘go to’ person for event and competition information. We cannot thank you enough for your help this year.

Neil has also been overseeing the Getting Started golf program to attract new lady members to our club.

To date this year the program has converted five ladies from the program to a membership status. Many thanks to Sandra Murphy who has organised a band of volunteers to support these new members as they commence playing the course and integrate into club life and culture.

Major Trophy Winners for 2019-20 Club Champion 2019: Bronze I Champion 2019: Bronze II Champion 2019: Pennant Hills Cup 2019: Pennant Hills Bronze Salver 2019: President’s Cup 2020: Captain’s Cup 2020: Singles Knockout 2020: Four Ball Knockout 2020: Foursomes Championship 2020: Bronze I Foursomes 2020: Bronze II Foursomes 2020:

Mary-Jo Usher Coral Lawrence Marlene Ratcliffe Grace Kim (Avondale) Margie Dearlove Naseem Chopra Not Played Amanda Tucker and Hannah Sneath

The past year we have been operating without a volunteer Social Committee, and the club’s social events have been very ably coordinated by Kristen Ramirez. Although events and member gatherings have been limited by the Covid lockdowns, the Bistro 232 and fine dining options have been well supported by members. Two Trivia Nights, additional Bistro evenings and a dedicated Young Member’s night are now planned for July, since restrictions have been relaxed.

The ladies Annual Christmas Dinner will again take place in November, its rightful place on the Pennant Hills calendar. Trish Johnson and Lisa Hamer delivered their sensational final show in 2019, after giving us twelve years of fun and frivolity. I’m sure they will enjoy being part of the audience in future years. A big thank you to everyone else involved in the production along with the very talented cast. Lee Thomas and Rosemary Artlett have agreed to take over the organisation of the 2020 Concert and I’m sure will provide us with another wonderful evening of talent and laughs in equal measure.

Bridge is an important social activity for many of our members particularly those who are no longer out on the course. The ladies play most days and enjoy the challenge of the game as well as the friendships which are sustained through this interaction. 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 also to Sally Tribe and Fay Selig 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 for your work, which brightens and beautifies the club. The new locker room has necessitated a change in presentation but the flower roster team has managed this beautifully. Adrienne Gorme continues to do a wonderful job maintaining our library in the Ladies locker room, which is utilised by many of the lady members. At the suggestion of Lesley Roberts, the library has now been expanded to include jigsaw puzzles. Thanks to Peter Trickett for his time in putting together the bookcase required to accommodate the puzzles and additional books. 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.

The archive/history team of Ann Crisp, Ron Harper and John Wall continue their important work in the old pro shop. The history group maintain critical records relating to the events and people who have contributed to the operations of our golf club. Many members are possibly unaware of the work they do, but their prompt response to spurious requests for information about the activities of Pennant Hills Golf Club over the last ninety-seven years are greatly appreciated. Thanks also to Bruce Jones for digitising all of the history group records for posterity.

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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 horticultural and greens staff have done an outstanding job with the ongoing care of the gardens around the clubhouse and out on the course. Many lady members assist this work by keeping the weeds at bay in areas around the course. Thank you to these ladies, organised by Lesley Roberts, for their efforts: Anne de Carvalho, Margie Dearlove, Lucie Gabb, Joan Isles, Chrissie Grier, Gail Holsgrove, Lyn Stanton, Helen Sugden, Sue Fabian, Tina Lee, Carole Whitehouse, Judy Einberg, Allison O’Sullivan and Adriana D’Orazio.

The last remaining Ladies life member of Pennant Hills Golf Club, Mollie Sutherland, died in March of this year. Mollie joined PHGC in 1959 and served on the PHGC Social and Ladies Committees - from 1964 – 1976. During this time Mollie generously donated a great deal of her time in the many and varied voluntary positions, acting as Secretary 1968, Captain 1971-2, and President from 1973-76.

Mollie was also a keen bridge player and participated in various roles in several of the famous PHGC ladies Christmas Concerts. Mollie and her husband, Jim, inaugurated the Mixed 4B Knockout at PHGC in 1966 and donated and presented this trophy until Jim’s death in 1998, with Mollie continuing to donate the trophy until 2016.

Mollie and Jim were also instrumental in establishing the strong ties which exist between Pennant Hills and Royal Canberra, by inaugurating the Sutherland Trophy which was an annual event between both clubs from 1983 – 2000.

Mollie was also a generous supporter of the Kendall Binns Junior Golf Foundation.

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. We certainly appreciate the commitment of the board members to ensuring we have a prosperous and vibrant club and look forward to working with you again in 2021.

The club’s General Manager, Barnaby Sumner, has continued to oversee the smooth operations of the club during and prior to these unprecedented times. We thank him for his work and the enthusiasm he brings to all matters related to the ‘bottom line’. 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 staff, led by Peter Barter have continued to surpass expectations with both their product and service, which have been appreciated by the many members who have attended events. Additionally, Peter and his staff have provided us all with a much needed and exceptional value ‘take-home’ meal option which commenced in April and has proven extremely popular. Kristen Ramirez and Nicole Tanner, Hospitality Managers, provide tremendous assistance to the Ladies Committee in planning menus and coordinating scheduled events. They make our life much easier as a result of their ‘can-do’ attitude and willingness to help.

An enormous thank you to Ladies Committee for all your work and support of the lady members of our wonderful club. Despite the many challenges imposed by the Covid pandemic they have continued to organise the quality events and competitions allowed during these uncertain times. Our Captain, Sally Moffatt, dedicates an enormous amount of time into the organisation of timesheets and competitions, and always endeavours to accommodate all member requests. Sally Gooley seamlessly manages all that goes with the competitions and results; Jenny Harvey is the committee ‘go-to’ girl recording all important occasions and posting these on the website for everyone to enjoy. Janet Shand, our very competent secretary, monitors all the details which are required in the organisation of the many events undertaken by the committee.

Finally, thank you to all the lady members for the support they have given their committee throughout a difficult year.

Judy Trickett

Ladies President

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KENDAL BINNS FOUNDATION REPORT Thanks to the continued support of Pennant Hills members, the Foundation continues to expand its operations. After a meeting with Rachel Bailey and a review of our finances, it was decided to support members of the Sunday clinics that showed both a commitment to golf and the potential and proper attitude to become long term members of Pennant Hills.

The following young members who are as young as 10 are now on a ‘scholarship’ of 15% off their annual subscriptions and some support for further developing their golfing ability via lessons or participation in sanctioned golf events:          

William Harriss Agatha Hui Brian Wu Jack Sherry James Dailly Jessica Sherry Kyan Amin Nicole Chen Harry Deitz Alfred Wang

Partial scholarships of 25% off their annual subscriptions were awarded to Jared Dries, Matt Davidson and Andy Richards.

Others on scholarship are:        

Olivia Kerr Hamish Murray Stephanie Shuttleworth Tom Davey Adhitya Nair Ryan Richards James Skoudas Oscar Haugerud.

Due to the restrictions caused by the pandemic our yearly Commencement Dinner was cancelled. However, we are having the dinner in August where all the players will submit a report of their golfing activities, speak very briefly and as last year enjoy a night of comradeship.

The foundation continues to improve its procedures in the development of young golfers into lifelong members of Pennant Hills. A template has been developed that the scholarship players will fill out quarterly regarding their golfing activities. Thanks to Rhonda Parkinson, our yearly planner is revised and close to completion.

The foundation again thanks:     

All the members who continue to donate to the foundation Rachel Bailey and the rest of the professional golf staff Thornleigh Golf Centre The Board of Pennant Hills Golf Club and the office staff Barnaby Sumner, General Manager

FINANCES: As of July 20th, the foundation has a bank balance of $27,743.36. 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 need for support. This is what we hoped would happen so we are very pleased.

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In conclusion, the trustees of the KBJF are:    

Graeme Martin Rhonda Parkinson Chris Allen Ed Truscott.

They welcome any opportunity to discuss what is happening in the foundation.

Ed Truscott

Chairperson, Kendal Binns Foundation

EX-SERVICE SECTION REPORT Report on Remembrance Trophy and Ex-Services Golf Day 2019 The successful 2019 ex-services day held on Saturday, 17th August included a field of 178 generous golfers who enjoyed perfect spring conditions on our course which was in magnificent condition. As a result, our club was able to make a donation of $4,210 to Legacy which included direct donations of $210 made by some of our ex-service members.

The Returned Servicemen’s Memorial Entrance was opened 63 years ago in 1956. We are advised that due to the repositioning of the main entry to the club house that the Memorial Gates may need to be relocated or repositioned. The ex-service committee has been aware for some time that this might occur and has been setting aside funds to ensure that this important part of our heritage is preserved. This year the committee elected to make a further contribution of $1,500 which now brings the Memorial Gates Fund to $15,500.

The overall profit on the day was $5,710 on the back of solid support for the raffle and the generosity of members donating prizes. Thanks to Glendore Wines and the Lord Nelson Hotel for their generosity. The raffle was won by Board Member Phil Stanton.

Players were provided with a sausage and onions breakfast washed down with a nip of scotch and once again it worked for the morning players who featured on the list of winners. The half way sustenance of Bully Beef and Damper Rolls, taken with the traditional gunfire brew of Rum and Coffee was again appreciated by the field.

Michael Williams who coordinates the famous Friday Long Lunchers’ enlisted a number of volunteers from their ranks and along with his wife Helen and daughter Catherine, provided a spirited catering service to players at breakfast and at half way. We are deeply appreciative of their gift of time and support. The golfers certainly appreciated the sustenance.

A major part of the money raised on the day came from the persuasive powers of Chris Howlett and Michael Fitzgerald who were running a book on the accuracy of players hitting on to the 18th tee. They raised the sum of $3,000 encouraging the punters with enticing odds under threat of some special sound effects that clicked in at the top of the back swing for unsuspecting golfers. Legacy volunteers led by an ex-member, Allan Meaker and Chris Allen assisted at the 18th.

Kerry James, an ex-member of PHGC and who served in Vietnam (1967/68) with 110 Signals recited 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 the Ex-Services Trophy won by Peter Cook. 2020 will be the 95th year of competition for the Ex-Services Trophy previously competed for as the AIF Cup and then World War II Trophy.

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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 won by John Keenan.

The A Grade, B Grade, C Grade and Scratch trophy winners were Jared Dries, Tony Vermeer, Albert Wong and Andrew Richards respectively.

The winning Ex-Services 4 ball team from 2018 improved on their score that year of 48 points to return this year with 51 points to again claim victory. Congratulations to 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 Andrew and staff in the professional shop, Craig and Kim in the office, as well as Kristen for her support and direction with 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 15th August. This date commemorates Japan's acceptance of the Allied demand for unconditional surrender on 14th August 1945.

For Australians, it meant that the Second World War was finally over. The date being a Saturday immediately following 15th August which in the 2020 calendar is a Saturday, 22nd August and we anticipate holding this event subject to agreement with the club.

Ex Services Committee Michael Rowan

Chairperson, Ex–Service Committee

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DIRECTORS’ REPORT The directors present their report together with the financial report of Pennant Hills Golf Club Limited (“the Company”) for the year ended 30 June 2020 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 M. Dearlove S. Fabian D.J. Leach C.J. Pragnell M.J. Rowan C. Rowston S.J. Walker G.A. Winters G.M. Martin A. M. Goodrick D. P. Stanton R. W. Howarth

Occupation Retired Retired Retired Retired Retired Asset Manager Retired Retired Director

Year elected 2018 2019 2018 2018 2019 2019 2018 2018 2019

Resignations and Appointments

Appointed 28/10/19

Appointed 28/10/19

Appointed 28/10/19 Resigned 28/10/19 Resigned 28/10/19 Resigned 28/10/19

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

Directors Names M. Dearlove A. M. Goodrick R. W. Howarth D.J. Leach C.J. Pragnell M.J. Rowan D. P. Stanton S.J. Walker G.A. Winters S. Fabian G.M. Martin C. Rowston

Sub Committee Responsibilities House (Chairperson), Planning & Finance Playing & Match, Membership & Marketing, Clubhouse, Business & Strategy Clubhouse (Chairperson), House (Chairperson) Planning & Finance (Chairperson), Membership Course & Playing (Chairperson), Planning & Finance Planning & Finance, Membership (Chairperson) Clubhouse, Clubhouse Experience, Business & Strategy As President is an ex-officio member of all Committees Course & Playing, House Course & Playing, Membership House, Membership Course & Playing, Planning & Finance

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.)

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.

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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.

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

Directors Names M. Dearlove A M Goodrick R W Howarth D.J. Leach C.J. Pragnell M.J. Rowan D P Stanton S.J. Walker G.A. Winters S. Fabian G.M. Martin C. Rowston

Maximum Attendances Possible 10 4 4 10 10 10 4 10 10 6 6 6

Pennant Hills Golf Club Ltd ABN 12 000 037 856

Meetings Actually Attended 9 2 4 9 9 8 4 10 10 6 5 6 23

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2020 Note

2020

2019

$

$

Revenue

Sales Revenue

2

2,010,315

1,706,540

Subscriptions, Entrance Fees, Golf Services and Other

2

4,044,809

3,881,193

Government Grants

2

443,063

-

Clubhouse Upgrade Levies and Donations

2

1,887

727,102

6,500,074

6,314,835

2

97,337

50,444

Cost of Sales

3

(895,156)

(818,215)

Cost of Rendering Services

3

(95,486)

(134,173)

Member Benefits

3

(60,101)

(94,205)

(1,050,743)

(1,046,593)

Bar and Catering Expenses

(947,669)

(865,166)

Pro Shop Expenses

(432,972)

(372,251)

Total Revenue Other Income Cost of Goods and Services

Expenses by Function

Golf Services Expenses Course Expenses House Expenses Administration Expenses Write Down in Clubhouse Assets

(249,340)

(257,367)

(1,850,436)

(1,952,207)

(602,489)

(488,045)

(1,059,643)

(1,003,303)

(75,118)

(23,529)

(5,217,667)

(4,961,868)

(6,268,410)

(6,008,461)

Surplus before Income Tax Income Tax Expense

329,001 -

356,818 -

Surplus after Income Tax

329,001

356,818

Total Costs and Expenses

Kendal Binns Foundation

Donations Received

15,899

10,346

Foundation Monies Expended

(9,341)

(13,557)

6,558

(3,211)

335,559

353,607

(6,558)

3,211

(1,500)

(500)

20,996

(31,762)

348,497

324,556

-

-

348,497

324,556

Surplus/ (Deficiency) from Kendal Binns Foundation

Net Surplus for the Year Transfer from/(to) Kendal Binns Junior Foundation Reserve Transfer from/(to) Memorial Gates Reserve Transfer from/(to) Course Development Reserve Surplus Attributable to Members

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

29

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 Note

2020

2019

$

$

15(a)

223,360

181,402

Trade and Other Receivables

4

708,142

552,961

Inventories

5

151,813

146,081

Other Assets

6

268,220

189,317

1,351,535

1,069,761

10,630,854

10,305,772

Total Non-Current Assets

10,630,854

10,305,772

Total Assets

11,982,389

11,375,533

ASSETS Current Assets

Cash and Cash Equivalents

Total Current Assets Non-Current Assets

Property, Plant and Equipment

7

LIABILITIES Current Liabilities

Trade and Other Payables

8

844,899

686,967

Borrowings

11

71,757

10,379

Provisions

9

136,174

116,357

Other Current Liabilities

12

2,427,437

2,334,122

Deferred Income

10

108,780

48,074

3,589,047

3,195,899

Total current liabilities Non-current liabilities

Borrowings

11

2,064,084

2,039,839

Long-Term Provisions

9

36,039

35,183

Long Term Deferred Income

10

919,070

702,023

Total Non-Current Liabilities

3,019,193

2,777,045

Total Liabilities

6,608,240

5,972,944

NET ASSETS

5,374,149

5,402,589

5,322,547

5,338,049

MEMBERS’ FUNDS

Retained Earnings Kendal Binns Junior Foundation Reserve

25,336

18,778

Memorial Gates Reserve

15,500

14,000

Course Development Reserve

10,766

31,762

5,374,149

5,402,589

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

30

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2020

Accumulated Funds

Kendal Binns Foundation Reserve

Memorial Gates Reserve

Course Development Reserve

Total Members’ Funds

$

$

$

$

$

5,013,493

21,989

13,500

-

5,048,982

324,556

-

-

-

324,556

(3,211)

-

-

-

(3,211)

3,211

(3,211)

-

-

-

500

-

-

-

500

(500)

-

500

-

-

Balance at 1 July 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

31,762

-

-

-

31,762

(31,762) 5,338,049

18,778

14,000

31,762 31,762

5,402,589

Surplus Attributable to Members

348,497

-

-

-

348,497

(356,690)

-

-

-

(356,690)

(7,309)

-

-

-

(7,309)

6,558

-

-

-

6,558

(6,558)

6,558

-

-

-

1,500

-

-

-

1,500

(1,500)

-

1,500

-

-

(20,996)

-

-

-

(20,996)

20,996

-

-

(20,996)

-

5,322,547

25,336

15,500

10,766

5,374,149

Initial adjustment on adoption of AASB15 - Revenue from Contracts with Customers Initial adjustment on adoption of AASB16 – Leases Surplus from Kendal Binns Junior Foundation Transfer to Kendal Binns Junior Foundation Reserve Donations to Memorial Gates Transfer to Memorial Gates Reserve Utilisation of Course Development Fund Transfer from Course Development Reserve Balance at 30 June 2020

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

Pennant Hills Golf Club Ltd ABN 12 000 037 856

31

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2020

Note

2020

2019

$

$

Cash flows from operating activities Receipts from members / customers

7,119,101

6,494,109

(6,018,294)

(5,404,458)

(127,901)

(39,336)

653

10,577

973,559

1,060,893

3,221

18,182

Payment for property, plant and equipment

(828,990)

(5,230,979)

Net cash used in investing activities

(825,769)

(5,212,797)

Proceeds from Bank Loans

1,850,000

2,000,000

Repayment of Bank Loans

(1,950,000)

-

Proceeds from Equipment Finance

50,500

59,027

Repayment of Equipment Finance

(7,701)

(8,809)

Repayment of Equipment Leases

(48,631)

-

(105,832)

2,050,218

41,958 181,402

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

223,360

181,402

Payments to suppliers and employees Interest Paid Interest Received 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

Net cash generated from /(used in) financing activities Net increase / (decrease) in cash held Cash at beginning of the financial year Cash at the end of the financial year

15(a)

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

Pennant Hills Golf Club Ltd ABN 12 000 037 856

32

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 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 26th August 2020 by the board of directors.

Net Current Liability Position As at 30 June 2020 the company has a net current liability position of $2,237,512 (2019: $2,126,138) primarily due to the large balance of subscriptions paid in advance. The subscriptions paid in advance for the 2021 year are not refundable and will be recognised as revenue over the 2021 financial year. The company has access to a bank facility of $3.6 Million (2019: $3.0 Million) which it can draw down on when cash flow requires it. More details on this facility are included in Note 11 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

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 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 accounted for in accordance with AASB16 – Leases. At inception the present value of the leased asset is capitalised as an asset to be depreciated over the term of the lease. A corresponding lease liability is recorded and shown in Note 11 Borrowings. As lease payments are made the periodic principal reduction is charged to the lease liability and a charge for interest is expensed in the period in which the payment is 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.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

34

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued) (e)

Impairment of Assets (continued) 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.

(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

35

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 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 2021 membership subscriptions received prior to 30 June.

(l)

Deferred Income The liability for deferred income relating to unutilised amounts of telecommunications tower rental received on the condition that specified conditions are fulfilled. Where the amount received is in respect of rental which 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.

Deferred income relating to entrance or joining fees paid by new members are recorded as deferred income and shown in Note 10. Entrance fees are released to income over 10 years which is the deemed average period of membership. If a member leaves within the 10 year period the balance of joining fees deferred is released and shown as entrance fee income in the year of departure.

(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

36

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued) (o)

Government Grants Government grants received from State and Federal governments comprising COVID-19 stimulus measures of Payroll Tax relief, Cash Boost and Jobkeeper are recorded as grant income when received or receivable. Expenses related to these grants are shown in expenses by function.

(p)

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.

(q)

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 2019. Information on the more significant standards is presented below.   

AASB 15 Revenue from Contracts with Customers AASB15 Revenue from Contracts with Customers defines the criteria for recognition of revenue.

When adopting AASB 15, the Company has applied transitional relief and opted not to restate prior periods. Differences arising from the adoption of AASB 15 in relation to classification, measurement, and impairment are recognised in opening retained earnings as at 1 July 2019.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

37

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued) (q)

New and Revised Standards that are Effective for these Financial Statements (continued) .  

AASB 16 Leases AASB16 Leases defines all leases, whether they be finance or operating leases are to be recorded at the present value at inception as an asset and a lease liability on balance sheets. The asset is to be depreciated over the term of the lease and the liability reduced with each payment by the reduction in principal. Interest being the difference between principal reduction and the lease payment is expensed in the period.  When adopting AASB 16, the Club has applied transitional relief and opted not to restate prior periods. Differences arising from the adoption of AASB 16 in relation to classification, measurement, and impairment are recognised in opening retained earnings as at 1 July 2019.

Adoption of these standards has resulted in a reduction in current year opening retained earnings of $356,690 (AASB 15) and $7,309 (AASB 16).

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 1060 General Purpose Financial Statements – Simplified Disclosures for ForProfit and Not-for-Profit Tier 2 Entities

Effective for annual reporting periods beginning on or after

Expected to be initially applied in the financial year ending

1 July 2021

30 June 2021

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

Pennant Hills Golf Club Ltd ABN 12 000 037 856

38

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 2020 $

2019 $

NOTE 2: REVENUE & OTHER INCOME SALES REVENUE Bar Sales Catering Sales Pro Shop Sales TOTAL SALES REVENUE

762,686 775,269 1,537,955

651,178 617,566 1,268,744

472,360

437,796

2,010,315

1,706,540

359,771 205,381 565,152

337,473 247,806 585,279

162,005 180,893 342,898

181,672 158,927 340,599

10,012

16,700

4,286

3,540

2,891,733 653 46,425 5,530 2,944,341

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

107,182 49,129 21,809 178,120

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

4,044,809

3,881,193

21,063 50,000 372,000 443,063

-

1,887 1,887

707,772 19,330 727,102

6,500,074

6,314,835

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 Bar, Catering & Function Services Room and Equipment Hire & Other Function Income House Services Locker Rentals 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 Government Grants NSW Payroll Tax Relief – COVID 19 Stimulus Federal Cash Boost Relief – COVID 19 Stimulus Federal Jobkeeper Relief – COVID 19 Stimulus Clubhouse Upgrade Levies & Donations Levy Income Donations to Clubhouse Upgrade

TOTAL REVENUE & OTHER INCOME Pennant Hills Golf Club Ltd ABN 12 000 037 856

39

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

2019

$

$

3,221 92,616

18,182 31,762

1,500 97,337

500 50,444

20,050 1,670

19,500 1,050

225,061

153,642

Plant, Equipment & Course Irrigation System

387,874

251,909

Total Depreciation and Amortisation

612,935

405,551

75,118

23,529

115,950

47,833

13,203

1,633

129,153

49,466

Bar

288,947

250,047

Catering

291,496

269,248

580,443

519,295

314,713

298,920

895,156

818,215

Cart Running Costs

14,242

67,606

Repair and Service Costs & Teaching Commission

81,244 95,486

66,567 134,173

-

15,932

60,101 60,101

78,273 94,205

NOTE 2: REVENUE & OTHER INCOME (continued) Other Income Gain on Disposal of Property, Plant and Equipment Members’ Contributions to Course Development Fund Ex-Serviceman’s Donation to Memorial Gates Fund

NOTE 3: INCLUDED IN DETERMINING SURPLUS FOR THE YEAR Remuneration of the Auditor for: - Auditing the Accounts - Taxation Services Provided by Related Practice of Auditor Depreciation of: Building

Impairment of Assets Write Down in Clubhouse Assets Interest Paid & Payable Bank Loans Equipment Finance

Cost of Sales

Pro Shop

Cost of Rendering Services – Pro Shop

Member Benefits Pro Shop – Equipment & Merchandise Discounts Golf Services – Visitor Passes & Business Golf

Pennant Hills Golf Club Ltd ABN 12 000 037 856

40

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

2019

$

$

716,166

553,293

(8,024)

(332)

708,142

552,961

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

$

$

$

$

2,338

(2,006)

-

332

Opening Balance

Charge for the Year

Amounts Written Off

Closing Balance

$

$

$

$

332

8,024

(332)

8,024

1-Jul-18 Trade Receivables

1-Jul-19 Trade Receivables

30-Jun-19

30-Jun-20

2020

2019

$

$

151,813

146,081

Prepayments

112,220

189,317

Government Grants Receivable

156,000

-

268,220

189,317

NOTE 5: INVENTORIES Finished Goods – at Cost

NOTE 6: OTHER ASSETS

Pennant Hills Golf Club Ltd ABN 12 000 037 856

41

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

NOTE 7: CORE PROPERTY, PLANT & EQUIPMENT Freehold Land $

$

Plant and Equipment $

Capital Work in Progress $

9,500

2,079,211

1,875,581

1,539,581

5,503,873

Additions at Cost

-

-

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 2018

Carrying Amount at 30 June 2019

Buildings

Adoption of AASB 16 - Leases Additions at Cost

715,526

106,661

$

(23,529) 6,578,569

184,145 -

Total

10,305,772 184,145

6,803

828,990

Disposals

-

-

-

-

-

Transfers

-

5,496,050

1,007,401

(6,503,451)

-

Depreciation Expense

-

(257,804)

(355,131)

-

(612,935)

Impairment Write Down

-

-

-

(75,118)

(75,118)

9,500

7,926,673

2,687 878

6,803

10,630,854

Carrying Amount at 30 June 2020

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 1/7/19 was $4.94 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

42

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

2019

$

$

Trade Payables

225,594

181,727

Sundry Payables and Accrued Expenses

619,305

505,240

Trade and Other Payables

844,899

686,967

NOTE 8: TRADE AND OTHER PAYABLES

NOTE 9: PROVISIONS Current Short Term Employee Benefits Employee Benefits – Annual Leave Employee Benefits – Long Service Leave

122,465

100,832

13,709

15,525

136,174

116,357

36,039

35,183

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 2020

2019

$

$

Deferred Income – Communications Tower

48,412

48,074

Deferred Income – Entrance Fees

60,368

-

108,780

48,074

Deferred Income – Communications Tower

665,223

702,023

Deferred Income – Entrance Fees

253,847

-

919,070

702,023

Current

Non-Current

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 2020 NOTE 10: DEFERRED INCOME (continued) 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.

During the Current year the Company adopted AASB 15 Revenue from Contracts with Customers which changed the method of revenue recognition for Entrance fees. Entrance fees received are now deferred and released over 10 years. In the event of a member resigning within the 10 years the balance of a member’s entrance fee not previously recognised is released. The standard was adopted retrospectively and relief taken to avoid restatement of prior year accounts. As a result at 1 July 2019 the retained earnings of the company was reduced by $356,690 with a current deferred Income $66,241 and non-current deferred income $290,449 being recorded.

NOTE 11: BORROWINGS 2020

2019

$

$

Commercial Loan - Equipment

20,127

10,379

Leases – Equipment

51,630

-

71,757

10,379

Current

Non-Current 1,900,000

2,000,000

Commercial Loan - Equipment

Bank Loan

72,891

39,839

Leases - Equipment

91,193

-

2,064,084

2,039,839

Facilities In the current year the Company increased the NAB borrowing facility to $3.85 Million to assist with the funding of the Clubhouse renovations. The facility reduced to $3.6 Million in April 2020 and will reduce to $3.4 Million in October 2020, $2.95 Million in April 2021 and $2.35 Million in April 2022. The facility expires in July 2022.

The Company entered into four Commercial Loans for the purchase of course equipment. The term of each of these arrangements is five years and expire between November 2023 and June 2024.

In the current year the Company adopted AASB 16 Leases which resulted in operating leases for carts and office printers being recorded as lease borrowings. The standard was adopted retrospectively and relief taken to not restate prior years. As a result at 1 July 2019 retained earnings was reduced by $7,309 with assets increased by $184,145 and lease borrowings increased by $191,454.

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.

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 2020 NOTE 12: OTHER LIABILITIES 2020

2019

$

$

2,175,486

2,152,192

198,940

133,492

25,925

23,730

2,003

3,025

25,083

21,683

2,427,437

2,334,122

Current Subscriptions in Advance Food and Beverage Levy in Advance Functions in Advance Unredeemed Vouchers Other

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 $6,558) (2019: ($3,211)) were transferred into / (from) the reserve.

Opening Balance of Kendal Binns Junior Foundation Reserve Contribution / (Utilisation) during the Year Closing Balance of Kendal Binns Junior Foundation Reserve

2020

2019

$

$

18,778

21,989

6,558

(3,211)

25,336

18,778

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.

Short-Term Post- Employment Total Benefits Benefit $ $ $ 2019 Total Compensation

630,970

36,865

667,835

640,659

-

640,659

2020 Total Compensation

(b) Transactions with Related Parties Apart from transactions related to activities as members which include golf, golf services and food and beverage operations the company has incurred no material 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 2020 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

Cash Assets

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

2020

2019

$

$

223,360

181,402

335,559

353,607

(3,221)

(18,182)

612,935

405,551

20,673

(84,583)

.

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: Depreciation Provision for Employee Benefits Write off for Impairment of Clubhouse Assets

75,118

23,529

Amortisation of Tower Rental Income Received in Advance

(36,800)

(36,800)

Amortisation of Entrance Fees Received in Advance

(42,475)

-

961,789

643,122

(155,181)

(503,655)

Net Cash Provided by Operating Activities before Change in Assets & Liabilities

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

(5,732)

14,703

(Increase)/Decrease in Other Assets

(78,903)

(100,822)

Increase/(Decrease) in Accounts Payable

157,932

383,442

93,654

624,103

973,559

1,060,893

Increase/(Decrease) in Other Liabilities 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 2020 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 the ir 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.

2020 Footnote

2019

Net Carrying Value

Net Fair Value

Net Carrying Value

Net Fair

$

$

$

$

Value

Financial Assets Cash and Cash Equivalents

(i)

223,360

223,360

181,402

181,402

Trade and Other Receivables

(i)

708,142

708,142

552,961

552,961

931,502

931,502

734,363

734,363

Total Financial Assets Financial Liabilities Trade and Other Payables

(i)

844,899

844,899

686,967

686,967

Borrowings

(i)

2,135,841

2,135,841

2,050,218

2,050,218

2,980,740

2,980,740

2,737,185

2,737,185

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 $1.9 million drawn against a current $3.6 million bank facility. The current drawings interest period applies until 22 October 2020 at which time it will be reset for a per iod of between 30 and 180 days at the discretion of the Company.

Borrowings also includes commercial loan equipment finance for six 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.

The Company has adopted AASB16 – Leases and for the current year borrowings also includes the principal amounts outstanding on leases of golf carts and office copier printers which were taken over a period of 5 years and will expire in February and October 2023. The carrying value of the leases 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 2020 NOTE 17: CAPITAL AND LEASING COMMITMENTS

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

2020

2019

$

$

Within 1 Year

58,795

59,747

1 to 5 years

96,012

154,807

154,807

214,554

11,984

-

142,823

214,554

Less: Future Finance Costs

The equipment lease commitments comprising golf cart and photocopier leases are non-cancellable operating leases with lease terms of five years.

Lease finance commitments are shown in Borrowings (Note 11) as current borrowings of $51,630 (2019: NIL) and non-current borrowings of $91,193 (2019: NIL).

During the current year the Company adopted Accounting Standard AASB16 – Leases whereby the present value of operating leases was booked as an asset and a corresponding liability raised for the outstanding principal. Lease payments are charged to the liability as a reduction in principal and interest is charged to interest expense. In the prior year lease payments were charged to lease expense. During the current year $10,164 was charged to interest cost and $58,795 allocated to reduce principal for operating leases.

Lease expense during the prior year amounted to $64,786 representing minimum lease payments.

Equipment Finance Commitments 2020

2019

$

$

Within 1 Year

29,103

12,758

1 to 5 years

74,061

43,589

103,164

56,347

10,146

6,129

93,018

50,218

Payable – Minimum Repayments

Less: Future Finance Costs

Equipment finance commitments are shown in Borrowings (Note 11) as current borrowings of $20,127 (2019: $10,379) and non-current borrowings of $72,891 (2019: $39,839)

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 2020 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 2020 there were 1,175 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 2020 or 2019.

NOTE 21: COMMITMENTS At 30 June 2020 the company has no material commitments which will be paid in the 2021 year.

NOTE 22: EVENTS AFTER THE BALANCE SHEET DATE On 21 July 2020 the Federal Government announced that the Jobkeeper payment would be extended until 28 March 2021. This represents a further 6 months from the original finish date of 27 September 2020. To be eligible for the extension the company will be required to satisfy a new decline in actual GST turnover test for either the June 2020 or September 2020 quarters. Although the new extension has not been legislated and exact details of eligibility been fully determined, based on a review of the eligibility test as announced the company is unlikely to be eligible for Jobkeeper payments beyond 27 September and payments will likely cease.

The Directors have reviewed the likely impact of Jobkeeper payments ceasing and the impacts of COVID-19 on the assets and liabilities at 30 June 2020 and do not believe there to be any significant financial impacts that would require an adjustment to the amounts disclosed in the Financial Report. In reaching this decision the Directors have considered the nature of property, plant and equipment assets, the timing and receipt of membership receivables owed to the club, timing of the company’s payable obligations, the non-refundable nature of subscriptions in advance as well as the repayment obligations for lease and bank loan commitments.

The financial report was authorised for issue on 26th day of August 2020 by the Board of Directors.

NOTE 23: 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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COMPILATION REPORT The additional financial data presented on pages 51 to 53 is in accordance with the books and records of the Company which have been subjected to the auditing procedures applied in our audit of the Company for the year ended 30 June 2020. It will be appreciated that our audit did not cover all details of the attached financial data.

Accordingly, we do not express an opinion on such financial data and in particular no warranty of accuracy or reliability is given. We do not undertake responsibility in any way whatsoever to any person (other than the Company) in respect of such data, including any errors or omissions however caused.

BDH Audit & Assurance Pty Limited

Gede Barone Director Dated at Beecroft this 26th day of August 2020.

Liability limited by a scheme under Professional Standards Legislation Pennant Hills Golf Club Ltd ABN 12 000 037 856

50

SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2020 2020

2019

2,891,733

2,721,502

653

10,148

46,425

46,617

SUBSCRIPTIONS AND OTHER OPERATING INCOME Subscriptions Interest Received Finance Fees Received Other Income

5,530

8,639

Gain on Disposal of Property, Plant & Equipment

3,221

18,182

2,947,562

2,805,088

Sales

1,537,955

1,268,744

Cost of Goods Sold

(580,443)

(519,295)

957,512

749,449

62.3%

59.1%

Salaries and On Costs

(849,233)

(768,455)

Other Direct Expenses

(98,435)

(96,711)

(947,668)

(865,166)

Room and equipment hire and other function revenue

10,012

16,700

Surplus / (Deficit)

19,856

(99,017)

Equipment & Merchandise Sales

472,360

437,796

Cart Hire Revenue

162,005

181,672

Services Revenue

180,893

158,927

Pro Shop Income

815,258

778,395

(314,713)

(298,920)

Cart Hire Running Costs

(14,242)

(67,606)

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

(81,244)

(66,567)

-

(15,932)

(410,199)

(449,025)

405,059

329,370

49.7%

42.3%

(366,620)

(347,821)

(66,351)

(24,430)

(432,971)

(372,251)

(27,912)

(42,881)

Surplus BAR AND CATERING TRADING STATEMENT

Gross Margin Margin % Less:

Bar & Catering Expenses

PRO SHOP TRADING STATEMENT

Cost of Goods Sold – Equipment & Merchandise

Gross Margin Margin % Less: Salaries and on costs Other direct expenses and depreciation Pro Shop Expenses Surplus / (Deficit)

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2020

2020

2019

324,104

300,751

35,667

36,722

Corporate Green Fees

104,195

125,861

Visitors Fees Golf Services Income

101,186 565,152

121,945 585,279

Member Benefits – Visitor Passes & Business Golf

(60,101)

(78,273)

Cost of Services

(60,101)

(78,273)

NSWGA and WGNSW affiliation fees

(58,572)

(69,106)

Representative players expenses

(21,233)

(24,603)

(707)

(6,115)

GOLF SERVICES Member Competition Fees Member Green Fees

Talent development Trophies and prize vouchers Salaries and on costs Fixture book, bag tags and score cards Expenses Surplus

(56,909)

(60,197)

(101,381)

(86,500)

(10,537)

(10,846)

(249,339)

(257,367)

255,712

249,639

(923,746)

(1,018,799)

(19,802)

(51,975)

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

(97,060)

(85,178)

(194,852)

(195,020)

Water usage

(17,567)

(10,600)

Fuel and energy costs

(49,798)

(59,018)

Course maintenance materials

Depreciation Other course expenses Improvement projects

(93,991)

(95,359)

(111,644)

(134,226)

(1,508,460)

(1,650,175)

(15,520)

(82,465)

(1,523,980)

(1,732,640)

(120,945)

(127,371)

(91,899)

(92,196)

(212,844)

(219,567)

(1,736,824)

(1,952,207)

Water reclamation plant Operating Costs Depreciation

Total Course Expenses

Pennant Hills Golf Club Ltd ABN 12 000 037 856

52

SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2020 2020

2019

Locker Fees

4,286

3,540

Total Income

4,286

3,540

(26,059)

(46,107)

Building maintenance costs

(108,018)

(100,147)

Cleaning and laundry costs

(107,213)

(107,526)

Depreciation

(353,736)

(190,079)

-

(26,950)

(7,463)

(17,236)

(602,489) (598,203)

(488,045) (484,505)

Salaries & on costs

(540,203)

(552,075)

Interest Paid

(129,153)

(49,466)

Finance Costs

(52,376)

(50,811)

Depreciation of office equipment

(24,231)

(20,683)

Insurance

(89,227)

(64,742)

Postage and telephone

(23,304)

(25,203)

Audit and accounting fees

(21,720)

(20,550)

Computer expenses

(75,375)

(67,405)

Printing and stationery

(16,133)

(16,677)

Marketing and advertising

(26,569)

(60,395)

Other expenses

(61,355)

(75,296)

(1,059,646)

(1,003,303)

(199,455)

(527,186)

49,129

48,784

107,182

80,455

21,809

18,930

1,887

727,102

Government Grants

443,063

-

Write Down in Clubhouse Assets

(75,118)

(23,529)

Total Non-Operating Revenue and (Expense)

547,952

851,742

SURPLUS ATTRIBUTABLE TO MEMBERS

348,497

324,556

HOUSE & LOCKER ROOMS

Catering entertainment and social costs

Salaries and on costs Other house costs Total Expenses Net House Expenses ADMINISTRATION

Administration Expenses

OPERATING SURPLUS / (DEFICIENCY) FOR THE YEAR

NON-OPERATING REVENUE AND (EXPENSE) Telecommunications Tower Rent Entrance Fees Forfeited F&B Levies Clubhouse Upgrade Levies and Donations

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Pennant Hills Golf Club Ltd ABN 12 000 037 856

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