Pennant Hills Golf Club Annual Report 2020-2021 by www.pennanthillsgolfclub.com.au

Pennant Hills Golf Club Limited

A N N U A L R E P O R T 2 020 / 2 0 2 1 ABN 12 000 037 856

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

Mr. Michael Rowan B.Ec, MBA, CPA

Vice-President:

Mr. Mark Bradbury Assoc. Dip. B.Admin (Mktg), GAICD

Captain:

Mr. Chris Pragnell

Hon. Treasurer:

Mr. David Blackshaw B.Ec, FCPA

Directors:

Mrs. Sue Fabian BA Dip Ed GAICD, Mr. Damian Maguire B.Surv. IS NSW, Mr. Graeme Martin GAICD, Mr. Andrew McDonald FINSIA FM Dip, Cert IV Dip & Mrs. Lesley Roberts.

COMMITTEES Finance:

David Blackshaw (Chairperson)

Planning:

Mark Bradbury (Chairperson)

Course & Playing:

Chris Pragnell (Chairperson)

Membership:

Sue Fabian (Chairperson)

House:

Lesley Roberts (Chairperson)

Ladies Committee:

Judy Trickett (President), Anne Eldridge (Captain), Janet Shand (Secretary), Sally Gooley (Competition Manager), Nicki Howlett, Lilly Moore, Karen Patterson & Susie Wales

Life Member:

Mr. Tony Gresham

Delegate to Golf NSW:

Mrs. Sue Fabian

Auditor:

BDH Audit and Assurance Pty Ltd

General Manager:

Mr. Barnaby Sumner

Pennant Hills Golf Club Ltd ABN 12 000 037 856

PRESIDENT'S REPORT The most important thing to be said in this report is to thank all members for your unwavering support during a year that has presented numerous challenges, one that tested patience and required understanding. In a year of significant commercial and operating challenges it is particularly satisfying that we have been able to achieve a stunning turnaround in financial outcomes. The Treasurer, as is his way, understates the achievement by saying that the club has finished the year in a much better financial position than it started. I leave you to read the excellent news in his report. The improved trading outcome can be attributed in part to a solid growth in membership. The net increase of 71 members is after resignations and the passing of 16 loyal members. To the financial year ending 30 June we had recruited 173 new members, it is a strong reversal of the flat or declining membership numbers of recent years. The loss of Neville Adcock, Bruce Menzies and Jack Townsend are noted elsewhere in this report. All were members of our club for more than 50 years; Jack served as our General Manager for 14 years. Both Golf Australia and Golf NSW reported a surge in the demand for golf during the pandemic so a performance improvement in key outcomes across the board is not unexpected. However a rising tide lifts all boats and the real test of achievement is to analyse the performance of our club against other clubs. A leading accounting firm conducted a 2021 survey of 92 golf clubs and courses in the Sydney metropolitan area and provided a report to Golf NSW. PHGC outperformed the industry across all comparable metrics. Subscription income, price multiplied by volume, grew by 3.83% for the industry whereas PHGC increased by 7%. Similarly competition fees grew by 6.7% whereas PHGC enjoyed growth of 9%. The survey reported bar and catering revenue falling by 26% yet our club experienced an increase of 21%. The rise in membership, the increases in trading activity and generally full fields at our club are special achievements of the 2020/21 year. These outstanding results are underpinned by the focussed commitment and energy of our staff, the work undertaken by the Committees and the enabling attitude at Board level. We are fortunate to have highly competent employees working closely with enthusiastic team leaders in the office, in the kitchen, behind the bar, in the pro shop and on the course. Their lives and incomes have variously been affected by the uncertainty and changing demands of the pandemic yet they have remained dedicated to the task and continued to serve members in a joyful and uncomplaining manner. We are grateful. It is proper to make special mention of the Board Committees and acknowledge the leadership of the Chair of each Committee. The transfer of the Planning function from Finance to a new Strategic Planning Committee led by Mark Bradbury was an early initiative of this Board and it has provided a sharper and a more defined approach to key areas of responsibility. Mark has outlined six strategic pillars of a draft strategic plan that will be completed and presented to members following the analysis of results from a survey of members that is currently underway. A medium term plan is an important tool to guide longer term initiatives and projects, particularly as our Board is subject to an annual election processes. The work of the Membership Committee chaired by Sue Fabian has been exceptional. Her comprehensive report includes a synopsis of membership categories available and highlights the creation of Emeritus membership that recognises the value of maintaining friendships formed at our club when active golf may no longer be a regular option. Unfortunately the pandemic required cancellation of the inaugural Emeritus Lunch but it remains on the agenda for the new year. Our retiring Captain, Chris Pragnell has skilfully chaired the Course and Playing Committee during his tenure as Captain. As he points out in his report, we have 93 acres to tend to a standard that members demand and this requires both a sufficient workforce and adequate budget to meet expectations. In part, his legacy is now a full time equivalent course staff of 14 and a budget for the coming year that has been built with substantial input from Richard and his team to whom we confidently delegate the responsibility for continuous improvement of one of Sydney’s finest golf courses. Chris also affords attribution to a number of volunteers and volunteer groups for their impact on the condition and presentation of our course. His report pays fitting tributes to Neil Rolfe, our Head Professional and his remarkable team in the pro shop including Andrew Potter who is responsible for golf operations. The report contains a special thanks to Rachel Bailey for her work with juniors as well as recognising her successful teaching record. The House Committee was chaired by Lesley Roberts; she provides a timely reminder of how Management along with the Board have totally embraced the responsibility of ensuring safety and strict adherence to all Pennant Hills Golf Club Ltd ABN 12 000 037 856

of the various government requirements of Covid-19. Compliance with regulations, ensuring safety of staff, members and visitors has “kept the lights on” and allowed continued enjoyment of the facilities of our club at a time when perhaps we have needed them most. The attendance of members at dining and the various club functions is testimony to the manner these were organised and presented by the hospitality team led by Kristen Ramirez. The quality of the food is credit to the skills of Peter Barter and his staff in the kitchen, thank you Peter. Lesley mentions the important training initiatives that were taken in respect of the training and development of our staff and the positive outcomes these shaped in the performance and capability of our people. Appropriate budget allocation has been made for this important activity to continue. The establishment of the Centenary Committee is noted in the House report. This committee is chaired by Jenny Harvey and has been meeting on and off over the year discussing options to make sure our centenary year is celebrated and remembered. The broad program of activity has been through a couple of iterations and is beginning to take shape. The party promises to be exciting, on and off the course. The committee will be meeting more frequently this year as plans are formalised. The exact birthday of our 100 years is 23rd February 2023. The Finance Committee is chaired by our Treasurer David Blackshaw who is ably supported by the Finance and Administration Manager, Craig Usher who administers a financial management system comprising a budget; actual outcomes compared to budget and a rolling monthly forecast of expected year end outcomes. This highly disciplined approach to the financial management of our club is capably overseen by David Blackshaw and his committee. It is of considerable comfort that our financial condition is monitored in such a methodical and meticulous manner. The work on the redesign of our bunkers, greens and surrounds has made good progress. As previously indicated the first phase is a concept design which has progressed in line with the timetable with concept drawings arriving in August. These will be discussed and we expect to move to a design brief toward the end of calendar 2021 to then allow costing to be completed and for implementation options to be considered by members. Building and delivery of the course master plan is addressed in the Strategic Plan and work has commenced on the possible finance options to enable it to be delivered and paid for within normal budgetary considerations that may or may not include medium term borrowing. For the first time an account to members of the PHGC Foundation is included in the Annual Report to members. Our Foundation is chaired by Ross Jackson who has injected energy, enthusiasm, hope and a focussed direction to this integral part of our club. The Foundation has three projects currently registered with the Australian Sports Foundation and membership has grown to 100. There is currently an appeal running for the Second Memorial Gates and architects have been engaged to prepare designs for the Golf Academy on the site of the old pro shop. I commend membership of the Foundation to all members who might be in a position to join. My report would be incomplete without special mention of Andrew Richards (Pictured) who is the current NSW Amateur Golf Champion and Club Champion. The club is proud of his achievements and applauds his contribution in many areas of club life. In closing I add a special thanks to our General Manger, Barnaby Sumner who actively and enthusiastically engages with all members, leads his teams from the front and is growing in the job. Michael Rowan

President

Pennant Hills Golf Club Ltd ABN 12 000 037 856

TREASURER’S REPORT Summary The Club has continued its positive turnaround in operating results. Financial performance was strong across all departments and was assisted by targeted cost control. The year was one of firsts with total revenue surpassing $7 million, membership subscriptions over $3 million and a surplus in each month of the financial year. In the year ended 30 June 2021 the Club recorded a surplus attributable to members of $792,304 compared to a surplus in the previous year of $348,497. The surpluses include government subsidies of $396,086 and $443,063 respectively. More importantly, the Club’s Earnings Before Interest Tax Depreciation and Amortisation (EBITDA), or roughly speaking our cash surplus, was $1,462,597 compared to the previous year’s $1,165,050. The Club has definitely finished the year in a much better financial position than it started. Revenue

Revenue from Member Subscriptions Membership subscriptions topped $3 million, coming in at $3.09 million, an increase of $201k on the previous year. Current members upgrading their membership, improved member retention and new member recruitment were responsible for this milestone and leaves the Club in a strong position moving forward. Revenue from Golf and Professional Shop Services The Club benefited from increased visitor and corporate golf activity, a healthy increase in member rounds played, lessons given, carts hired together with members upgrading their equipment and apparel. Revenue from Golf and Professional Shop Services was $1.803 million compared with $1.380 million in the previous year. After deducting cost of sales, employment and other expenses, this resulted in a surplus of $425k compared to $217k for the previous year. Bar and Catering With the clubhouse fully operational for all but a few weeks of the year, revenue was $1.856 million, an increase of $318k over the previous year. Member and corporate activity were well up, whilst continued Pennant Hills Golf Club Ltd ABN 12 000 037 856

COVID-19 restrictions limited external function income. There was a healthy $86k surplus compared to $30k for the previous year. Expenditure

Total expenditure increased from $5.218 million to $5.313 million or 1.8% year on year. Whilst targeted expenditure control has been a focus, where money needed to be spent on facility improvements, repair and maintenance and staff training, it was addressed on a priority basis. It is worth noting that interest charges were down by $62k on the previous year’s charge of $129k and insurance costs continue to increase well ahead of inflation. Balance Sheet Improved trading conditions have resulted in the bank loan being reduced from $1.9 million at the commencement of the financial year to $600k at 30 June 2021. The bank even congratulated the Club on its financial performance. High praise indeed! Importantly the Club has also been able to purchase much needed course equipment, above ground fuel tanks, replace kitchen and IT infrastructure, as well as member related assets such as the lightning detection system, the 10th tee air compressor, new clubhouse furnishings and the very popular pizza oven. This was all achieved from operational cash flow. Course Development Fund The Course Development Fund accumulated $108k through the year with funds being expended on the bunker refurbishment program, nursery green drainage and course redevelopment costs. There was a balance of $36k at 30 June 2021 for further course projects. Conclusion I would like to thank Barnaby Sumner, Craig Usher and the PHGC team for their tireless contribution to the smooth and efficient operation of the Club. I also wish to thank all the members of the Finance Committee, Michael Rowan Chris Pragnell Mark Bradbury & Andrew McDonald for their input and support throughout the year. Finally, I would like to thank you, the members of our great Club, for your whole hearted support and patronage during the year which has produced such a fantastic result and leaves the Club in a strong position to meet uncertain economic times and to invest in the future. David Blackshaw FCPA

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

CAPTAIN’S REPORT It feels strange to be compiling a report as at the end of June, in July, to be read in October. What may happen in the next 3 months is anyone’s guess. We live in interesting times. I will leave the planned concept of the Green’s rebuild, that is standard, size, shape and contouring as well as the bunkering, surrounds, aprons and collars to the President’s report and concentrate on what we will see on the course between now and the AGM. The sand in the greenside bunkers on holes 1, 4 and 7 will be replaced with “Elite Sand” which will give all the greenside bunkers the same texture. The enhancement of the pond on 14 which will include new plants, a sandstone feature around the perimeter and a water feature will be completed. The 6 tee and 11 championship tee will be re-turfed with couch. The chipper (located near the once controversial mobile phone towers) putting surface will be changed from the present Poa Anna to A1/A4 bent grass, currently being grown on the 12th carry nursery. At present the chipper surrounds are Kikuyu and half the area will be replaced with Santa Anna couch (Concord) and the other half with Sir Grange Zoysia (Killara) to determine which will be the better surface for our course. Once this is finished, we will have Pure Distinction (Killara) on 3 green, A1/A4 (Avondale, Concord & Pymble) on the chipper and Crystal Blue links on 16a, so the members will be able to assess the attributes and shortcomings of each of these putting surfaces. The presentation of the course is a vital component to our enjoyment of the game of golf. With 93 acres to tend we have not always provided course management with sufficient personnel to adequately attend to every aspect of grass, sand and gardens. The guiding hand of the President has enabled course staff numbers to be returned to 14 FTE (Full Time Equivalents) and this provides the manpower to enable the continuing restoration of our wonderful layout. We are indeed fortunate to have Richard Kirkby as Director of Course and Grounds and with his recently appointed 2iC, titled, Course Manager, Liam Ash, we have potentially a team to rival the ability of Kirkby/Gumbleton when together from the mid-nineties to mid-two thousands. They are well supported by newly appointed 3IC Dalton Jones, our stalwart foreman Brian Ridge and the experienced greenkeeper Glen Bell along with recent appointees Daniel Mion, Zac Hayward, Ben Stokes, Stephen Deane, Chris Barakat as well as Oliver Brown (Horticulturalist), Alex Bullas (Horticulturist) and Ben Peroulis (Mechanic). The Captain’s role is so much easier when you have an understanding with a man who has superior product knowledge, an unblemished personal industry reputation and is a strong leader. My thanks to Richard for educating a person who freely admits he “doesn’t know it all”. No matter the number of course staff, there are always areas requiring attention and, on your behalf, I thank Lesley Roberts and her Gardening Group for their wonderful contribution. Apart from Lesley, they are Lucie Gabb, Helen Sugden, Gail Holsgrove, Carole Whitehouse, Julie Bradbury, Allison O’Sullivan, Tina Lee, Lyn Stanton, Joan Eyles, Ann de Carvalho, Adriana D’Orazio and Margie Dearlove. Greg Winters and his Working Warriors also contribute mightily on a Thursday morning and provide a wonderful contribution. Their regulars are Mick Kevin, Peter Trickett, Ron Fellows, Clas Einberg, Greg Winters, Ian Shand, and Gordon Herriott. Others who help, particularly during the Course Renovations are Peter Cook, Allun Roberts, Scott Cooper, Peter Barber, Stuart Dickson, Paul Murphy, Tim Whitney, David Leach, Garrett Dwyer, Eugene O’Reilly, Bob Wilton, John Wooton, Lionel Jackson and Vasco de Carvalho. Our Pro-Shop under the outstanding direction of Neil Rolfe, is I believe second to none. The enthusiasm and competence demonstrated by all his team makes a visit to our Pro-Shop a golfer’s delight. To Liam Shiels, Jared Dries, Andy Richards, Rachel Bailey and Keith Smith thank you for the warm demeanour displayed to us all. I wish to single out Andrew Potter for mention. He as Golf Operations Manager is totally across his position. One example is the organising of the Golf Premier League. This is a fun event which Pennant Hills Golf Club Ltd ABN 12 000 037 856

brings the morning and afternoon fields closer together. I believe the GPL could be expanded to include the Monday and Thursday Women. Thank you all, for making the playing golf so much more enjoyable. The winners of the Club’s major trophies are contained at the end of this report and on behalf of the President and the Board I congratulate all successful players. Any mention of Golf would be incomplete with acknowledging the new First Family of Golf, The Richards. Andy is the current Club Champion as well as NSW Amateur Champion, Father Geoff is current A Reserve Champion and younger brother Ryan is Junior Champion. What an unbelievable record. Representative Golf: There were a number of teams, women and men who represented our club this year. I will leave comments regarding the women’s representative golf to a more appropriate authority. Encourage Shield. The Encourage Shield is an annual handicap match play competition for Junior’s. The objective is to provide young golfers with the opportunity to test their skills and learn match play competition in an environment that is fun, supportive and free of undue influence. The Club entered two teams in the competition with the Red Team topping their division. This qualified them for the final series. The team was crowned the Sydney Metropolitan Champions, winning against Richmond GC and Woolooware GC. The team then played in the NSW State Championships where they narrowly finished in third place. This is the first time a Pennant Hills Encourage Shield team has made it to the final. Special thanks to Rachel Bailey for her ability to impart the golfing skills she has developed, to her young future champions. Red Team: Manager, Andrew Lam. Riley Lam, Brian Wu, Matthew Nathan, Alfred Wang, Agatha Hui, Wexin Wang, James Dailly. Blue Team: Manager, Pete Sherry Jack Sherry , Jess Sherry, Nicole Chen, Kathy Wang, Adi Nair, Kyan Amin, Oscar Haugerud Major Pennants: Manager Greg Winters. Captain Andy Richards Our relegation to Division 2 at the end of the 2020 season seemed the perfect opportunity to introduce a number of younger players to the highly competitive cut and thrust of Major Pennants. So, our younger squad faced the challenge of a very competitive section. In Major Pennants, a player can do almost everything correctly and still lose the match. Bare statistics often hide the effort and skill brought to the table by the players. Jared Dries was a stand out. He was 1 of only 13 players in all divisions to be undefeated. Not being defeated through the season is a wonderful achievement. Thanks also to Andy Richards, Hamish Murray, Steve Oitmaa and Grant Naylor for your solid contributions and the spirit with which you represented our Club. It is a testament to the depth we have in talented young golfers that Ryan Richards, Andrew Lam, Ben Saw, Lucas Frey, Charlie Johnston, and James Skuodas were selected for their first time along with Matt Davidson and Andrew Stannard joining them when available. The team is still in the fight to avoid relegation to Division 3, but Team Manager Greg Winters summarises the future when he states “we have laid the foundation for the next group of major Pennants legends to emerge”. Masters Pennants: Manager, Kell Ferguson Competing in Division 2, we were drawn to play against Ryde Parramatta, Strathfield and Bexley. Despite losing the first game at home, the team has won all the remaining contests and finished first in the group. The semi-final was due to be played against Oatlands at Monash, but unfortunately the scheduled date was the first Sunday of the current lockdown. Pennant Hills Golf Club Ltd ABN 12 000 037 856

It is a strong team, with two players Dave Bailey and Gabe Ormaechea being undefeated. Interestingly both Dave & Gabe are formers winners of the Major Pennants “undefeated player” award. Whilst we don’t know when the competition will be concluded our squad includes: Dave Bailey, Bill Bell, David Blackshaw, Rob bush, Andrew Davidson, Antony de Vires, Dave Edwards, Kell Ferguson, Neil Gordon, Damien Maguire, Gabe Ormaechea, Geoff Richards and Paul watts PACK Cup: Manager Chris Allen The PACK Cup has been contested annually since 1990, between Pennant Hills, Pymble, Avondale Concord and Killara golf clubs. Pennant Hills have won the event no less than ten of the twenty-two years it has been contested, but, unfortunately, lean times since 2013. We went down narrowly this year to Killara in the final. Such is the commitment of team members, Damien Maguire and Dave Blackshaw that they both played several rounds of the Club Championships in the morning and then rushed to the tee for the PACK Cup in the afternoon. Damien in fact, played in every match and was undefeated. A total of 13 dedicated members represented the club. They are: Bill Bell, Rob Bush, David Blackshaw, Antony De Vries, David Edwards, Hugh Gerdes, Neil Gordon, Ross Howarth, Damien Maguire, Peter Ryan, Rob Stevenson, Jon Underwood and Tim Whitney. On behalf of the members, I sincerely thank outgoing manager Chris Allen for his sterling effort over the past three seasons and welcome incoming manager Graeme Martin as his very able replacement. PACK Plate: Manager Graham Dawson PHGC entered the 2021 PACK Plate as current holders, with hopes of being the first back-to-back winners. Unfortunately hopes were not matched by actuality and we finished in 4th place. We hosted the final round, with the 2021 outcome depending on the result of the Avondale V Killara match. In a tight encounter Killara prevailed and won the plate for the first time. Those who represented are: Graham Dawson, Greg Wilson, Andrew Mowat, Peter Handel, Greg Winters, Alex Bennie, Darcy Cluff, Terry Gilchrist, Jeff Birtles and Joe D’Andreti. My thanks to Graham Dawson for embracing the role as Team Manager so wholeheartedly over the last three years. I’m sure he will enjoy just being able to concentrate on the game. Darcy Cluff has agreed to step into the role next season. Mixed Pennants: Manager, Neil Gordon A large squad of players represented the Club this season with mixed success. The team was drawn to play Beverly Park, Monash and Oatlands. After wins at home against Monash and Beverly Park, they finished 3rd in their division. The Clubs history group of John Wall, Ann Crisp Ron Harper and Bruce Jones deserve a very special thank you for bringing the Clubs history alive. The information the group has gathered recorded and stored has enabled Bruce Jones to continue with the brilliant “Living History Series”. We are indeed blessed to have such dedicated fellow members preserving our records. There are many who contribute to the enjoyment of golf at our Club, none more so than our General Manager Barnaby Sumner. He has bought to us a wealth of golfing experience and coupled with his management expertise and engaging personality has set the path for ongoing success, as we approach our Centenary. I wish to acknowledge the help I have received from Chris Allen. The wealth of information he has at his fingertips is inspiring. His understanding of all things golf is virtually irreplaceable and has been of invaluable assistance to me in the role as Captain. I have been fortunate in my term to have had the support of two Presidents. The first a courageous and visionary leader and the second, one who continues this legacy. My aim as Captain was to return the Clubs focus to the course. Only you the members, can gauge if this has been achieved to any degree. My gratitude to colleagues comprising the Course & Playing Committee of Michael Rowan, Sue Fabian, Damien Maguire, Graeme Martin and Anne Eldridge for their input and guidance over the year. The support of Neil Rolfe and Richard Kirkby to this Committee is also acknowledged. Pennant Hills Golf Club Ltd ABN 12 000 037 856

Thanks most importantly to you, the members, for your ongoing support and continued friendship. Chris Pragnell Captain Chair Course & Playing Committee

Men’s Competition Events Club Champion

Andrew Richards

A Reserve Champion

Geoff Richards

B Grade Champion

Chris Coughlan

C Grade Champion

Paul Kearns

Senior Champion

Damian Maguire

Junior Champion

Ryan Richards

Pennant Hills Cup

Jye Pickin - Avondale Golf Club

Pennant Hills Junior Open

Not Played – COVID 19

Pennant Hills Senior Open

Gerard Power – Castle Hill Country Club

Foursomes Championship

Murray Fogarty & Damian Maguire

AE Marks Cup President’s Cup

Conor & John Mansfield Michael Cahalane

Captain’s Cup

Murray Fogarty

AY Gresham Cup

Ross Howarth

E J Hyde Cup

James Dean

Winter Cup

Bruce Jones

Spring Cup

Matthew Reid

Summer Cup Autumn Cup

Matthew Pinchbeck Peter Johnston

Founder’s Plate

Ed Truscott

Mixed Fourball Knockout

Not Played – COVID 19

Gold Button

Ben Cully

60 and Over

Ian Ritchie

Left Hander’s Cup

Harry Williams

Sep Johnston (February) Eclectic

Luke Harris

August Eclectic (Wednesday) Vic Kendall Tyro Trophy

Robert Wilkes Patrick Kenny

HOUSE REPORT In a year unlike any other that we’ve experienced, our Club has faced the many challenges with energy, commitment, innovation and good humour. The overriding commitment to keep members, staff and visitors safe from COVID-19 has underpinned every decision made by management and the Board. The staff are to be congratulated on the manner and timeliness of adherence to Government policy, keeping everyone informed of ever-changing regulations, and maintaining a safe environment which has been a haven for many at this difficult time. Pennant Hills Golf Club Ltd ABN 12 000 037 856

Regular in-house dining options have been extremely well attended. Degustation dinners, bistro nights, pizza nights, self-cook barbecues, wine dinners, wine tastings and more brought patrons to the Club in a massive show of support. Additionally, take-home meals and takeaway pizza have found a ready market amongst members. Function business, not surprisingly, has been affected by cancellations and rescheduling because of uncertain times, but overall, it is very pleasing to see that the budgeted surplus in this area has been exceeded. The new pizza oven has been a welcome addition to the terrace, being very well received and patronised by members. Recently, new outdoor heating has been installed under the pavilion on the terrace, further enhancing a popular spot for members to socialise. New seasonal bar menus, freshly made sandwiches, and an expanded wine list have also met with member appreciation. We have farewelled some long-term hospitality staff during the year, for the best of reasons – moving on to the next stage of their lives/careers. New staff members seem to fit effortlessly into the team, testament to the culture which Kristen and Barnaby engender. All staff participated in a Team Survey during the year. This proved a very worthwhile exercise, with outcomes including: • Internal and external training schedule • Formation of HR facility • Creation of Standard Operating Procedures • Performance reviews to provide further scope for training • Policy on golf course access for staff • Implementation of Staff Christmas Fund • Emphasis on social engagement among teams The above initiatives underline the value placed on training and maintaining good staff, creating a happy workplace, which ultimately has a positive effect on the member experience. A Centenary Committee, chaired by Jenny Harvey and comprising Michael Rowan, Lesley Roberts, Graeme Martin, Sally Moffatt, Lyn Toohey, Greg Winters, Barnaby Sumner, Kristen Ramirez, Andrew Potter, Bruce Jones & Joan Eyles, has been established and is tasked with compiling a programme of golf and social events to commemorate this important milestone in 2023. We look forward to seeing what they have in store for us! The House Committee would like to thank General Manager, Barnaby Sumner, for his outstanding ability to juggle the myriad demands on his time. Also, Kristen Ramirez and Nicole Tanner for their dedication, professionalism and continual good humour throughout the year. My thanks to my fellow Committee members, Andrew McDonald, Graeme Martin and Judy Trickett for their contribution to our club. Special thanks to Michael Rowan and Barnaby Sumner for their guidance throughout another challenging year. Lesley Roberts Chairperson House Committee

Pennant Hills Golf Club Ltd ABN 12 000 037 856

MEMBERSHIP REPORT VALE We remember with affection the following Members who have passed away in the last year. Neville Adcock

Bev Doherty

Monica Rogers

Nancy Atkinson

Richard Hahn

Bruce Thomson

Michael Barrett

Terry Jones

Graeme Thompson

Elaine Boys

Peter MacDonald

Jack Townsend

Dawn Cordony

Bruce Menzies

James White

Lee Mordey

We acknowledge and are grateful for their contribution to Pennant Hills Golf Club. These Members are part of the history and tradition of Pennant Hills, and represent many families whose names will be familiar to us all as long-standing and valued members of the Pennant Hills community. Between them, these Members represent over 500 years of Membership of our Club, and they all have a place in our memory and our hearts. We record with particular gratitude the contribution of Jack Townsend (Pictured), who served Pennant Hills Golf Club as Secretary Manager from 1980 to 1994. Jack guided the Club with a sure hand and his love of the Club was reflected in his popularity and his care for the interests and welfare of the Club and its Members. His son, Steve, writes: “Jack treated Pennant Hills Golf Club as his home and the Members as his family. On his retirement from his Secretary Manager position, Jack continued to play golf at Pennant Hills until 2016. He loved his Wednesday fourball games with Lenny Eldridge, John McNamara and Bob Handley, where their special ability to create a great fourball score from a mediocre singles score was legendary.” Long-standing Members, Neville Adcock (55 years of Membership) and Bruce Menzies (54 years), are also remembered with great respect and affection for their loyalty and support of the Club and of their fellow Members. Bruce Menzies joined Pennant Hills in 1966, sponsored by Ted Lawson and Paul Henricks. Bruce was always a great companion and friend, a committed supporter of Pennant Hills Golf Club, and an enthusiastic participant in Club events, winning the 1975 Hislop Cup with Ted Lawson, and celebrating Holes-in-One in 1972 and 1988. He attended almost every AGM until 2009, and always sent an apology when unable to attend. Neville Adcock was nominated for Membership in 1962 by his brother Bob Adcock and Mal Lamb, and joined the Board as a member of the General Committee in 1979. He served on the Finance and Planning and House Committees, becoming Chairman of the Finance Committee in 1980 and Treasurer from 1981 to 1986. As Treasurer, contributing to the position his professional expertise as a Certified Practising Accountant, he was described as bringing “thoroughness and attention to details”. His insistence upon budgetary control and management “made him a tower of strength in the total management of the Club”, whose “sound business-like judgement” was widely respected. Neville was President of the Ex-Servicemen’s group within the Club. Neville was clearly well ahead of his time in the suggestion he put in 1986 to the Playing Committee to speed up play, for a “hit when ready” policy. Advocates of “ready golf” today will appreciate his farsightedness!

Pennant Hills Golf Club Ltd ABN 12 000 037 856

MEMBERSHIP COMMITTEE ANNUAL REPORT It is a privilege to present this Report on behalf of the Membership Committee, whose members are David Blackshaw, Mark Bradbury, Sue Fabian (Chair), Graeme Martin and Lesley Roberts. I thank the Committee for their work and dedication to the welfare of Pennant Hills Golf Club and its Members over the past year. I also thank Barnaby Sumner, Kim Truijens and Craig Usher for their excellent contribution and support of the Committee. Kim, as the first contact for those considering Membership of Pennant Hills Golf Club, is outstanding in the warmth of her approach and her understanding of the opportunities, conditions and process involved in becoming a Member. Craig keeps us up to date with vital Membership category numbers and financial information. Barnaby’s untiring work in promoting Membership opportunities has produced excellent results in the past year. He and the Team are to be congratulated. The key strategic areas on which the Membership Committee focuses are: 

  

Optimising the satisfaction of Members and their potential access to the golf course and Competition play while at the same time paying careful attention to ensuring that Member numbers are at a level which provides necessary income for the Club and minimises the impact on Member subscriptions. The development of strategies to understand the needs and expectations of Members in order to support and increase the satisfaction and enjoyment of all Members. Development of programs for the induction, engagement and support of new Members, so that they feel welcome and become active, enthusiastic Club Members. Exploring ways in which Members are retained throughout their golfing and post-golfing careers.

An important change was made early in 2021 to the Deferred Membership category to better reflect the circumstance of Members in that category and in other categories representing Members whose playing opportunities were limited in various ways. The Deferred category was discontinued because it did not properly reflect the range of purposes for which it had come to be used, and had become virtually a prelude to resignation for many Members who were no longer able to continue playing golf. Absentee Membership was introduced to accommodate both those Members whose place of residence is outside NSW, and those Members unable to continue in a Playing Category for various reasons, including illness/injury, personal, work or family demands. Absentee Membership is seen as reflecting a temporary situation, and envisages a return to a playing category for most of its Members. Limited Playing Membership was offered in 2020 as a replacement for 2 Day Membership, and offers increased playing opportunities, including eligibility for some Competitions, for an increased Subscription which is better aligned to cost and relativity to other playing memberships. A limit of 120 currently applies to this category, which had 104 Members as at 30 June, 2021. Country Membership was revised to better reflect the relatively small number of Members who live more than 100K from Pennant Hills Golf Club, but who wish to retain a strong connection with the Club. Members of this class are now entitled to entry in up to 12 Competition events per year. The Social category has been discontinued and replaced by House Membership. This better reflects the nature of this Membership, distinguishing it from playing categories, and offering a continuing connection with the Club through its various activities and facilities. A number of initiatives have made a substantial contribution to the successful introduction of new Members over the past 12 months. The steady decline in the number of women Members over past years, at a rate of around 6 per year, is of concern, and a number of programs have been introduced to attempt to attract more women Members to Pennant Hills. Efforts will continue into the future to maintain the successful momentum of these initiatives. The Get Started, Get Started Plus and Get Golfing programs have been successful in introducing new golfers, particularly women, to the game and to the Club. Neil Rolfe and his team, with the valuable ongoing support of the Women’s Committee, are to be congratulated on the success of this wonderful Pennant Hills Golf Club Ltd ABN 12 000 037 856

initiative. In 2020-21, the Membership Committee worked on a pathway for participants in these programs to proceed to Membership of Pennant Hills. The introduction of some discounts, and access to Temporary Flexible Membership, available for a limited period of 12 months and on a ‘pay per play’ basis, has provided an opportunity to transition into regular golf and the Pennant Hills community. In the past 12 months, 10 new golfers have completed the Get Started and/or Get Started Plus programs. 3 graduates of the program have become Temporary Flexible Members, 3 have become Limited Playing Members, one has transitioned to 6-1D Membership and one has become a Full Playing Member. While the total of women Members in 2021 has increased by only one, this represents an overall nett improvement in numbers when compensation for resignations is factored in. It is anticipated that the decline may be further arrested and numbers of women Members increased through the initiatives currently being implemented. Another pathway to Membership which is proving to be very successful is the Try Before You Join (TBYJ) program. This program also utilises Temporary Flexible Membership to allow potential new Members 12 months of access to play (including Competition play) before applying for Membership in a full playing category. Of the 11 TBYJ participants in the past 12 months, 4 have become Limited Playing Members and 7 have become Full Playing Members. Our analysis has shown that the Temporary Flexible Members under the TBYJ program do not make an appreciable negative difference to Competition field numbers. However, they do provide a pool of potential new full playing Members for the future, with the added advantage of having had up to 12 months to become familiar with the course, the Club, its community and culture. Considerable attention is paid to the Induction and welcome of these and of new Members in other playing categories. Both men and women are invited to the New Member Induction evenings, which are also attended by the President, Captain, Membership Committee members, the General Manager and the Women’s President and Captain. Recently our Club Professional, Neil Rolfe, has also participated in the Induction, giving useful advice during the Presentation about Competitions, bookings, lessons and the Pro Shop and its team in general. Since October 2020, the Induction evening has included a complimentary Bistro dinner for the new Members and their partners – an excellent welcome to the Club and an opportunity for them to appreciate the social and dining opportunities Pennant Hills Golf Club has to offer. Since May 2021, new Members have also been able to participate in monthly special welcome sessions on Saturday afternoons, which include a clinic given by Neil Rolfe and around six holes of golf. This has helped our new Members to get to know one another, Neil and Barnaby, and to familiarise themselves with the Golf Course and the Club. Unfortunately, COVID has restricted this initiative for the time being, but it is planned to continue it on a regular monthly basis when regulations allow. An initiative which the Membership Committee and Board are delighted to have introduced is the new category of Emeritus Membership. The class of Membership is open to those generally over 70 years of age and/or generally 30 years of Membership of Pennant Hills Golf Club. Emeritus Membership reflects the value Pennant Hills places on these long-standing Members, their years of loyalty to the Club, the contribution of many of these Members to the Club and its community, and their continuing commitment to and interest in Pennant Hills Golf Club. Emeritus Members will be invited to the 2021 Annual General Meeting, and were to have attended a special Emeritus Members’ Annual Luncheon, Course update and tour in early August. We were very disappointed that this event needed to be postponed because of COVID restrictions, and hope that conditions allow it to go ahead in the future. Membership remains an area about which the current COVID 19 situation imposes a degree of uncertainty and challenge. The Committee continues to work carefully and thoughtfully in taking into consideration the many variables which have the potential to influence the number of Members of Pennant Hills and their ability to maximise their participation in, and enjoyment of, the Club which we all love. Sue Fabian Chairperson Membership

Pennant Hills Golf Club Ltd ABN 12 000 037 856

MEMBERSHIP CATEGORY STATISTICS As at 30 June 2021

As at 30 June 2020

Male

Female

Male

Female

2 Day Member

6 Day Member

147

150

6 Day Member 21 to 25 Yrs

6 Day Member 26 to 30 Yrs

6 Day Member 31 to 40 Yrs

6 Day Member Over 80 Yrs

6 Day Member Senior

7 Day Life Member

7 Day Member

246

7 Day Member 21 to 25 Yrs

7 Day Member 26 to 30 Yrs

7 Day Member 31 to 40 Yrs

7 Day Member Over 80 Yrs

7 Day Member Senior

7 Day Member Special

7 Day Member U21 Yrs

Absentee Member

133

162

Country Member

Emeritus Member

Flexible Member

Full Playing Life Member

Full Playing Member

268

Full Playing Member 21 to 25 Yrs

Full Playing Member 26 to 30 Yrs

Full Playing Member 31 to 40 Yrs

Full Playing Member Over 80 Yrs

Full Playing Member Senior

Full Playing Member Special

Full Playing Member U21 Yrs

Honorary Member

House Member

Limited Playing Member

Staff Member

932

314

862

313

Category

Pennant Hills Golf Club Ltd ABN 12 000 037 856

PLANNING COMMITTEE REPORT The Planning Committee was created with the purpose of developing a Strategic Plan for our Club. The Committee needed to identify the key strategies that would grow our future prosperity, and to create a framework to ensure it was successfully implemented. Importantly, we agreed that the plan needed to have input from all stakeholders - the Board, our Members and Staff. Part of our mandate was to review our Vision and Values, and to put forward a recommendation that describes what we aspire to be, along with the values that guide our behaviours at PHGC. We have agreed on a Vision of being “A Leading Sydney Private Members Golf Club.” This Vision is a test that we use to identify what actions we prioritise. If the action helps us to achieve our vision, then we should proceed with it and if it doesn’t, then we should abandon it. Our values have been refined to reflect those behaviours that best describe the type of culture we want at PHGC. Those values are: Camaraderie – Inclusiveness – Integrity – Respect –

Where Friendship and Golf Unite Us All are welcome, and everyone is valued To be honest, fair, and transparent in all our dealings For our history, course, culture, and traditions

The Vision and Values retain large parts of our previous ones and have been modified to reflect our future direction. Our Strategic Plan is built around a 3-year vision. We have analysed the key areas of opportunity, and have agreed a draft plan that focuses on the following 6 pillars: Strategic Pillar

Strategic Intent

Build and Deliver the Course Master Plan

To significantly improve the quality of greens, surrounds and bunkers and address the out-ofbounds risks, resulting in better playability and reputation amongst current and prospective members.

Create Water Security

To develop a plan that delivers continuity of water supply enabling the preservation of the course and arboretum into the future.

Optimise Membership and Member Experience

To maximise membership whilst preserving course access quality and increase Member satisfaction and retention.

Preserve Financial Stability

To build a 5-year financial map that ensures investment decisions balance the need to build financial reserves whilst investing in Club infrastructure.

Invest for Growth

To identify a pipeline of projects that will contribute to the long-term health of PHGC.

Strengthen Corporate Governance

To embed strong corporate governance processes into our Club to ensure we build competence and repeatability whilst reducing risk.

Supporting each of these strategies are detailed 1-year and 3-year workplans that include clear actions, accountabilities, and timelines. Pennant Hills Golf Club Ltd ABN 12 000 037 856

Feedback from Members and Staff is critical to ensure we have captured the important opportunities and have broad-based support for our plan moving forward. We are developing a Member survey that will allow your input, and this will be rolled out in the next few weeks. We have conducted Strategic Plan information sessions with staff and have received some very helpful feedback that has been used to make amendments. Once the Member survey feedback is received and incorporated, the final plan will be published to Members and regular progress reporting will be undertaken. I want to thank all those people who have contributed to the planning process. We have created a draft plan that is a strong foundation whilst retaining the flexibility to be a working document that will guide our future direction. Mark Bradbury

Chairperson, Planning Committee

Pennant Hills Golf Club Ltd ABN 12 000 037 856

WOMEN’S MEMBERS’ REPORT All activities for 2020- 2021 are detailed in the Women’s Annual Report. Women’s Committee for 2020 - 2021 President: Captain: Secretary: Competition Manager: General Committee:

Judy Trickett Annie Eldridge Janet Shand Sally Gooley Susie Wales Karen Patterson Nicki Howlett Lilly Moore

I would like to preface this report by explaining that in this document, and as per the proposed amendments to the Pennant Hills Golf Club By-Laws, the term ‘Ladies’, has, as of this year, been amended to ‘Womens’ in line with both Golf Australia and Golf NSW terminology. What a year 2020-21 has been. Thankfully, Pennant Hills Golf Club has once again successfully negotiated this year of challenges, with the Covid pandemic further impacting all aspects of life in Australia, and more locally the Golf Club operations, yet again. As they did in the early 2020 lockdown, the oversight and management by the Club Board and administrative personnel has enabled our Club to pivot operations and continue to provide as many members as possible with the opportunity to continue to access the course, Pro-Shop and café. Our thanks are extended to the Board and all those in the Club’s administrative areas for their prompt response to all available government financial supports. Although the government imposed Covid restrictions have limited many competitions and Inter-Club activities, the implementation of safety measures and QR registration systems has enabled the continuation of weekly Club golf. The ability to have an outlet from lockdown and isolation has provided our members with much needed exercise and social interaction in a safe and secure environment, which has been greatly appreciated. Sadly, in recent times some of our members have been unable to access the course due to their residential geography, and the restrictions on exercise being within 10km of home. Our thoughts go out to all of these affected members. For the 2nd year in a row our fixtures have been affected by COVID-19. Luckily, we were able to reschedule our fixtures which meant that all of our major events from July 2020 to June 2021 have been played. The highlight of our golfing calendar is the Women’s Championship Finals Day. As per Pennant Hills tradition, it was an honour to again have Tony Gresham as our Starter. A huge thank you must also go to our referees of the day - Sue Fabian, Chris Allen, Peter Abraham, Jeanette Wright and Lesley Roberts. Caddies were allowed, though due to COVID-19 restrictions they acted primarily as advice givers and buggy pullers. The usual tradition of spectators enjoying a High Tea with the Champions of the day continued. The Pennant Hills Cup and Bronze Salver was rescheduled to October. Unfortunately, due to COVID-19 this event had to be a Pennant Hills members only event for 2020. Our Club, Bronze I and Bronze II Foursomes event was rescheduled from August to November. Again, this year our Golf NSW 2021 Women’s Grade season was interrupted. This year it was not COVID19 but torrential rain. Our 2021 Grade team consisted of Monique Herman De Groot, Anne Eldridge, Susie Wales, Mary-Jo Usher and Amie Maguire. The Grade team played 5 matches with the last 2 rounds being Pennant Hills Golf Club Ltd ABN 12 000 037 856

unable to be played due to extreme weather. The Golf NSW Match Committee deemed enough matches had been played for the Pennant to be awarded. The result for Pennant Hills was relegation to Division 2 for 2022. We fielded 5 teams in the Northern District Pennant Competition being Silver Salver, Silver II Salver Pennant, Bronze I Pennant, Bronze II Shield and Bronze III Salver. All teams were lucky to complete their season though Bronze II missed 2 matches due to poor weather. Pennant Hills won 2 Pennants in 2021. The first being the Silver II Salver Pennant: Clare Fraser, Karen Long, Rosie Scott (Field Captain), Margot Weinert and Jeanette Wright. The second pennant was secured by our Bronze III Salver team, who completed the season undefeated. The team was made up by Jan Barber, Lynne Bastock, Joy Bull, Sue McMurchie, Lilly Moore (Field Captain), Trish Morris and Lee Thomas. All teams were well supported by Rachel Bailey with her on-course training session prior to the start of their season. Participation is high at these training sessions and the ladies are always grateful for Rachel’s tips and advice. Our Sunday Women’s Pennant team were midway through their season, with 4 matches completed when the lockdown restrictions temporarily paused play. InterClub competitions are always popular with our PHGC women’s membership. Our InterClub with Avondale in 2020 was cancelled due to COVID19. We were lucky to host the Oatlands InterClub at Pennant Hills in 2021 and secure a win and ensure the Rose Bowl returned to Pennant Hills. After rescheduling the Castle Hill InterClub 2021 due to poor weather, Castle Hill showed us how advantageous it is hosting an event like this, and won convincingly on the day. The Golf NSW events we were able to play this year are as follows: Golf NSW Women’s Medal Rounds, Golf NSW Women’s Goodwill Plate, Golf NSW Ambrose Event and Golf NSW Women’s Bowl. A regular event in our fixture is the Lexus of Parramatta Cup rounds. Our top 15 qualifiers will represent Pennant Hills in the final against Oatlands and Castle Hill at Riverside Oaks in October. As well as the major golfing trophy events which are held each year, the Women’s Committee run a number of competitions to encourage participation and enjoyment, inclusive of all membership categories. These include the Christmas 3 Ball, High Tee Classic, Mystery Day, St Patricks Day, Beanie Day, Visitors Day and our Annual Fundraising Day. Without exception these days are well supported and highly anticipated by the membership. Unfortunately, recent restrictions have again stalled events - both golf and social- which have been scheduled since June 30. In past years, during the Pennant Hills greens renovations, a bus load of women has travelled to a mystery destination for golf and lunch. The recent restrictions on social distancing have meant that the Women's Committee were required to rethink this model and we held the ‘Non’-Mystery Day, as bus travel en masse was no longer considered a safe or viable option. In September 2020 this enjoyable event was held at Twin Creeks. Thank you to Jenny Harvey, Ann Elsley and Susie Wales for organising such a successful day. In 2021, due to restriction uncertainty, the committee switched the Mystery Day and the Greens Renovation trip, and another ‘Non’ Mystery Day was held at Gosford Golf Course in March. Many thanks to Karen Patterson for organising this day and liaising with Gosford GC regarding all necessary details, following the loss of their chef - one week prior to our visit. Sue Fabian ran a “Pennant Hills Specific” rules session for all members in April. This session was well received and supported by both female and male members. We also take this opportunity to thank Sue Fabian who always volunteers to referee any final in our fixture. Pennant Hills Golf Club Ltd ABN 12 000 037 856

A huge thank you to the pro shop team lead by Neil Rolfe, and capably assisted by Liam Shiels, Jared Dries, Grace Nell and Andrew Potter. Thank you for your continued support of the women’s program. Thanks also to our teaching professional team of Neil Rolfe, Rachel Bailey and Liam Shiels who continue to provide coaching at the highest level. We are fortunate to have such expertise at our Club. Neil Rolfe has again been overseeing the Get Started, Get Started Plus and Get Golfing programs to attract new members to our Club. This program has proven very popular amongst both female and male participants. Three new women have now progressed through the program and availed themselves of the Temporary Flexible membership category. These women are now playing, and enjoying 9 holes on Thursday afternoons. Many thanks to Cheryl Jones, the women’s committee and Sue Fabian, who have welcomed, supported and encouraged these new members to enjoy all our Club has to offer. The next Getting Started program, slated for commencement in October is currently ‘on hold’ until restrictions are eased once again. During the report timeframe we have had five women join our Club as Limited Playing members and two new members have availed themselves of the 61D category. Major Trophy Winners for 2020-21 Club Champion 2020: Bronze I Champion 2020: Bronze II Champion 2020: Pennant Hills Cup 2020: (Note: PHGC participants only due to Covid 19) Pennant Hills Bronze Salver 2020: (Note: PHGC participants only due to Covid 19) Foursomes Championship 2020: Bronze I Foursomes 2020: Bronze II Foursomes 2020: Captain’s Cup 2020: Four Ball Knockout 2021: Singles Knockout 2021: President’s Cup 2021:

Hannah Sneath Judy Einberg Ann Elsley Amanda Tucker Helen Sugden Monique Herman de Groot & Carole Whitehouse Margie Dearlove & Lyn Stanton Jill Goodall & Belinda Milroy Monique Herman de Groot Ann De Carvalho and Coral Lawrence Rhonda Parkinson Margie Dearlove

The Club’s social events during these challenging times have been very ably coordinated by Kristen Ramirez. Although events and member gatherings have been limited, or subject to late changes, courtesy of the Covid lockdowns, the Bistro 232, degustation wine evenings, and fine dining options have been well supported by members. The women’s Annual Christmas Dinner will again take place in November, with a format yet to be finalised, based on Government restrictions applicable at the time. In 2020, Rosemary Artlett and Su Maxwell did a fabulous job in pivoting our customary concert into a video retrospective which provided everyone in attendance with great entertainment in a Covid-safe environment. Rosemary and Su have agreed to again organise the 2020 Concert/Entertainment offering, 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 have been very patient with regard to lengthy suspension of their competition for large parts of 2020, and the brief window when play resumed prior to the second lockdown. We do appreciate the work of Sue Rogge and Carolyn Brereton who coordinate the very popular Tuesday Ladies Bridge Group. Thank you also to Sally Tribe and Marian Kench, who organise the monthly Friday Bridge Day which was due to resume in July, and has once again been suspended until further notice. Kay Brunner does a great job of organising the bridge InterClubs, which involves liaison with other Clubs and formation of teams from Pennant Hills. Sadly, only one such interClub took place this year before lockdown once again limited Bridge participation. Thank you to all of the ladies who give of their time and skills volunteering on the flower roster. These talented women provide lovely floral arrangements for those special Club days when it is so important for our Club to look its best. Pennant Hills Golf Club Ltd ABN 12 000 037 856

Adrienne Gorme continues to do a wonderful job maintaining our library in the women’s locker room, which has now been expanded to include jigsaw puzzles. 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, John Wall and Ron Harper continue their important work in recording and curating the critical records relating to the events and people of Pennant Hills Golf Club. The historical information which this group has gathered and maintained - regarding the last ninety-eight years - is greatly valued and will prove an important resource for the Club’s Centenary celebrations. Thank you also to Bruce Jones for digitising all of the history group records for posterity. Kerrie Graham and Hilary Flynn handed over their roles as Veterans Delegates this year, after leading this group to new levels with their dedicated organisation. The new Veterans Delegates are Anne Hellman and Joan Tooke, who are already very capably managing our Veteran members and their associated competitions. The women veterans appreciate their regular entertaining communication regarding the leaderboard and events. Thank you to both the outgoing and incoming Veteran Delegates for your 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 of our women 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, Tina Lee, Julie Bradbury, Carole Whitehouse, Judy Einberg. Allison O’Sullivan and Adriana D’Orazio. On behalf of the women members, I would like to thank all 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 2022. 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 the administration personnel provide to the women’s committee, 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. The food offerings have now been further enhanced via the installation of a wood-fired pizza oven, which has proven extremely popular with all members, both as a dine-in and more recently, take-away option. Additionally, Peter and his staff have provided us all with much needed and exceptional value ‘take-home’ meal options which continue to prove very popular. Kristen Ramirez and Nicole Tanner, Hospitality Managers, offer tremendous assistance to the Women's 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 the Women’s Committee for all of your work throughout the year, and the ongoing support you provide to the female members of our wonderful Club. Despite the many challenges imposed by the Covid pandemic the committee have continued to organise the quality events and competitions allowed during these uncertain times. Our Captain, Anne Eldridge, dedicates an enormous amount of time to the organisation of timesheets and competitions, and always endeavours to accommodate all member requests. Janet Shand, our very competent and diligent secretary, has continued to monitor all the details which are required in the organisation of the many events undertaken by the committee, and ensures all important tasks are undertaken in a timely manner. Sally Gooley seamlessly manages all that goes with the competitions and results; Karen Patterson and Susie Wales have done a wonderful job in helping out wherever and whenever assistance is needed, recording all important occasions and posting these on the website for everyone to enjoy. Nicki Howlett and Lilly Moore have put in a great effort in organising our very successful Pennants Teams in 2021 and offering general support in committee work. Finally, a massive thank you to all of the Pennant Hills women members for the support they have given their committee throughout a difficult year. Judy Trickett Ladies President Pennant Hills Golf Club Ltd ABN 12 000 037 856

PENNANT HILLS GOLF CLUB FOUNDATION REPORT Your Foundation was recommissioned late last year, with a new set of trustees and renewed vigor. The current Trustees of the Foundation are; Ross Jackson (Chair), Peter Abraham, Mark Golding, Ray Dearlove, Craig Stubbs, Lyall McLachlan, Michael Rowan and Lesley Roberts as Nominees of the Board as well as Mark Bradbury an ex officio member and as Chair of the Board Planning Committee. Our charter is to plan for the future of our club, specifically looking at the long and medium term, and what assets and infrastructure we will need to service members at these times. This is a different brief to your Operational Board, which looks specifically at matters requiring attention now, and is charged with the redevelopment of our current assets, such as the golf course. During the year your Foundation: 1. Increased Foundation membership by approx. 300% to approx. 100 members. 2. Increased donations to the Foundation by approx. 600%, leaving us in the enviable position of being able to move ahead on at least 2 of our current projects. 3. Launched the Foundation at a dinner that was attended by 200 people, who had the enjoyment of listening to Australian Rugby Great John Eales speak about his life and philanthropy. We have many projects in train, brief details of some are below. 1. Second Memorial Gates This project is being coordinated with our Ex-Services Group, headed by Michael Rowan. We have completed the preliminary planning and design (with the able help of Damian Maguire, David Cunneen and Phil Stanton). We will soon finalise these plans and lodge a D/A with Council to allow construction. 2. Golf Academy We have completed the scope of works, with much appreciated input from the Kendall Binns team, the proshop teaching team and the archive team – all of which will be housed in this new facility. To remind you, the main aim of this facility is to provide a virtual driving range (s), which is the key element lacking at our golf course. We have appointed an architectural firm and associated professional services to move to initial planning. It is expected that we will receive the first concept plans (in 2D and 3D) within the next month. 3. Kendal Binns Junior Fund Whilst this program is managed entirely by Ed Truscott and his team, it fits under the Foundation in terms of compliance. I am pleased to report that the launch of the Foundation and subsequent enthusiasm for all the projects from members, has meant a boost to their coffers. May I take this opportunity to thank all those members who have supported our initiative, and urge all of you to join the Foundation as members. We have achieved a lot over the past year, and intend to achieve a lot more in the future – however we need your help to do so. Following this report is the Foundation’s Income and Expenditure and Balance Sheet for the year ended 30 June 2021 and a separate report from the Kendal Binns Junior Fund. Ross Jackson

Chairperson Pennant Hills Golf Club Foundation Pennant Hills Golf Club Ltd ABN 12 000 037 856

Foundation Income and Expenditure and Balance Sheet In accordance with the Foundation Deed of Trust we have included below the Foundation’s audited Statement of Income and Expenditure and Balance Sheet.

STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 30 JUNE 2021

2021 $

2020 $

27,294 30,558

120 15,779

57,852

15,899

Expenses Foundation monies expended

(22,477)

(9,341)

Total Expenses

(22,477)

(9,341)

Net Surplus for the Year

35,375

6,558

Transfer in from Ex Services memorial gates reserves

17,000

Net Contribution for the Year

52,375

6,558

Revenue Direct Donations received Donation Grants received from Australian Sports Foundation Total Revenue

As at 30 June 2021 $14,333 donations remained with the Australian Sports Foundation (ASF). These donations will be recognised when the ASF grant the funds to the Pennant Hills Golf Club Foundation.

BALANCE SHEET AS AT 30 JUNE 2021 2021 $

2020 $

ASSETS Current Assets Cash at Bank

77,711

25,400

Total Current Assets

77,711

25,400

Total Assets

77,711

25,400

LIABILITIES Current Liabilities GST Liabilities

Total current liabilities

Total Liabilities

NET ASSETS

77,711

25,336

FOUNDATION FUNDS Pennant Hills Golf Club Foundation Reserve

77,711

25,336

Total Foundation Funds

77,711

25,336

For a breakdown of the Foundation funds by project refer to Note 13 in the Pennant Hills Golf Club Financial Statements. Pennant Hills Golf Club Ltd ABN 12 000 037 856

KENDAL BINNS JUNIOR FUND REPORT Thanks to the continued support of Pennant Hills members, the Fund continues to expand its operations. While it appears self-evident, I have been reminded that we are all getting older and for Pennant Hills to remain vibrant and remain the great Club it is, the Club needs young members who turn into committed long term members. We currently have 26 scholarship players which is up from 19 last year. What is really heartening is this report recently by Rachel, which indicates to me that we will be helping more young players in the years to come: Here is Rachel’s summary of the junior program:     

Sunday clinics: 5 groups x 44 participants Tuesday Group x 8 participants Thursday Group x 8 participants Saturday Group 6-10 on a weekly basis for on course learning and handicap attainment. Full program for Term 3 with all juniors signed up already.”

The Fund continues to partner with the Thornleigh Golf Centre to allow these players access to subsidized practice. It also is supporting the ‘Girls in Golf” initiative and recently supported the scholarship players who attended an online workshop to improve their mental strength. The Fund has also purchased “log books” which our young players will record their statistics showing their improvement over a period of time. One of the highlights of the year was our Commencement Dinner held in April. It was extremely well attended by both scholarship players and their parents. Each player had to speak for approximately 1 minute regarding their golf hopes. This was followed by an interview with Andrew Richards regarding his highs and lows with golf. His honesty and sincerity were a motivation for our younger players. We would like to again thank:

  

 All the members who continue to donate to the fund  Rachel Bailey and the rest of the professional golf team Thornleigh Golf Centre The Board of Pennant Hills Barnaby Sumner and the office team

Special thanks to Chris Allen who has stepped down from the committee and a warm welcome to our new member, Hugh Gerdes. FINANCES: As of 20 July, the foundation has a bank balance of $27,7k. While this appears healthy, the fund has a budget of $15,000 for the next financial year and 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. In conclusion, the trustees of the KBJF are Graeme Martin, Rhonda Parkinson, Hugh Gerdes and Ed Truscott. They welcome any opportunity to discuss what is happening in the foundation. Ed Truscott

Chairperson Kendal Binns Foundation Pennant Hills Golf Club Ltd ABN 12 000 037 856

EX-SERVICE SECTION REPORT Report on Remembrance Trophy and Ex-Services Golf Day 2020 The successful 2020 ex-services day and 92nd Remembrance Day was held on Sat 14th November being rescheduled from the original date of August 22nd due to Covid restrictions and uncertainty at that time. The field of 200 players included twelve serving members of the armed forces on a perfect spring day and on a golf course presented in magnificent condition. As a result of the day our club has been able to forward a cheque to Legacy for $5000 including direct donations from ex-service members of $435. Additionally, the committee was able to allocate a further $1500 to the Ex-Service Gates fund bringing this to $17,000. The 2020 event enjoyed the generous sponsorship of Diageo, a global leader in beverage alcohol with an outstanding collection of brands across a wide range of spirits and beers. Diageo provided prizes and sustenance in the form of the iconic Johnnie Walker Black Label whisky and the “living sprit” - Bundaberg rum. The Committee is most grateful to Diageo. Players were provided with a sausage and onions breakfast washed down with a nip of Johnnie walker as well as the half way sustenance of Bully Beef and Damper Rolls, taken of course with the traditional gunfire brew of Bundaberg Rum and Coffee. Michael Williams who coordinates the famous Friday Long Lunchers’ enlisted a number of volunteers from their ranks and along with his wife Helen, they provided the 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. The raffle prize was a crystal decanter accompanied by a bottle Johnnie Walker Black was won by Terry Gilchrist. As usual, a major part of the money raised on the day came from the persuasive powers of Chris Howlett, Michael Fitzgerald and Pebbles Punia who were running a book on the accuracy of players hitting on to the 18th tee. They raised the sum of $3800 encouraging the punters with enticing odds. Legacy volunteers led by an ex-member, Allan Meaker assisted at the 18th green with nearest to the pin duties and the issue of raffle tickets. Ex-Service member Derrick Docherty recited the Ode and we were fortunate to have Andrew Hansch, a bugler, who is a member of the Navy Band to play the Last Post and Reveille prior to the presentation of trophies. This was a moving ceremony that reminded us all of the sacrifice of war and why the day is an important part of the PHGC calendar. Bruce Lumsden, on behalf of the family of the late Geoff Lumsden donated the Ex-Services Trophy won by Chris Bradbury. Next year will be the 96th year of competition for the Ex-Services Trophy previously competed for as the AIF Cup and then World War II Trophy. It will be held on Saturday 13th November in 2021. 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 and presented by Terry Waterson was won by David Murray. The A Grade, B Grade, C Grade and Scratch trophy winners were Stephen Butler, Rod Dunscombe, Craig Sheppard and Gabe Ormachea respectively. The winning 4 ball team with a score of 51 was Riley Lam, Andrew Lam and Michael Thompson. The winning ex services team with a score of 48 included serving members Peter Noake, Michael Bogan, Joseph Slater and Adam Vasilj To make this day a success there are a number of challenging and administrative arrangements that need to be capably carried out, we are grateful to Andrew and staff in the pro shop, Craig and Kim in the office, as well as Kristen for her support and direction with the catering. Michael Rowan

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

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 2021 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 L. Roberts D. Maguire A. McDonald M. Bradbury D. Blackshaw

Occupation Retired Retired Retired Accountant Retired Retired Banker Asset Manager Retired Solicitor Retired Director Retired Registered Surveyor Mortgage & Asset Finance Broker Retired Finance Manager

Year elected 2018 2019 2018 2018 2019 2019 2018 2018 2019 2020 2020 2020 2020 2020

Resignations and Appointments Resigned 26/10/20 Resigned 26/10/20

Resigned 26/10/20 Resigned 26/10/20

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 D.J. Leach C.J. Pragnell M.J. Rowan S.J. Walker G.A. Winters S. Fabian G.M. Martin C. Rowston L. Roberts D. Maguire A. McDonald M. Bradbury D. Blackshaw

Sub Committee Responsibilities House (Chairperson), Planning & Finance Planning & Finance (Chairperson), Membership Course & Playing (Chairperson), Planning & Finance As President is an ex-officio member of all Committees As President was an ex-officio member of all Committees Course & Playing, House Membership (Chairperson), Course & Playing, House, Membership, Course & Playing Course & Playing, Planning & Finance House (Chairperson), Membership Course & Playing, Planning House, Finance Planning (Chairperson), Finance, Membership Finance (Chairperson), Membership, Planning

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. Pennant Hills Golf Club Ltd ABN 12 000 037 856

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 L. Roberts M. Bradbury D. Blackshaw D.J. Leach C.J. Pragnell M.J. Rowan D. Maguire S.J. Walker G.A. Winters S. Fabian G.M. Martin C. Rowston A. McDonald

Maximum Attendances Possible 4 9 9 9 4 13 13 9 4 4 9 13 4 9

Meetings Actually Attended 4 9 9 9 4 12 12 9 4 4 9 11 4 8

MEMBERSHIP & CONTRIBUTION IN WINDING UP The Company is incorporated under the Corporations Act 2001 and is a company limited by guarantee and without a share capital. If the Company is wound up, the constitution states that each member is required to contribute a maximum of $2 each towards meeting any outstanding obligations of the entity. At 30 June 2021, the total amount that members of the Company are liable to contribute if the Company is wound up is $2,492 (2020: $2,350)

REVIEW AND RESULTS OF OPERATIONS The net surplus for the year amounted to $854,422 compared to a $335,559 surplus for the prior year.

ENVIRONMENTAL REGULATION The Company’s operations are subject to various environmental regulations under either Commonwealth or State legislation. The directors are not aware of any significant breaches during the period covered by this report. The Company has completed an Environmental Management Plan to assist in managing these risks and to meet its obligations.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 to the directors of Pennant Hills Golf Club Limited I declare that, to the best of my knowledge and belief, during the year ended 30 June 2021, there have been: i.

no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii.

no contraventions of any applicable code of professional conduct in relation to the audit.

BDH Audit & Assurance Pty Limited

Gede Barone Director Dated at Beecroft this 25th day of August 2021.

Liability limited by a scheme under Professional Standards Legislation

Pennant Hills Golf Club Ltd ABN 12 000 037 856

INDEPENDENT AUDIT REPORT TO THE MEMBERS OF THE PENNANT HILLS GOLF CLUB LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Pennant Hills Golf Club Limited (the Company), which comprises the statement of financial position as at 30 June 2021, the statement of profit or loss, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. In our opinion, the accompanying financial report of Pennant Hills Golf Club Limited, is in accordance with the Corporations Act 2001, including: (i) (ii)

giving a true and fair view of the company's financial position as at 30 June 2021 and of its financial performance for the year then ended; and complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Pennant Hills Golf Club Limited, would be in the same terms if given to the directors as at the time of this auditor's report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Information Other than the Financial Report and Auditor's Report Thereon The directors are responsible for the other information. The other information comprises the information included in the Company's annual report for the year ended 30 June 2021, but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards- Reduced Disclosure Requirements and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Liability limited by a scheme under Professional Standards Legislation

Pennant Hills Golf Club Ltd ABN 12 000 037 856

Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

•

• • •

•

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

BDH Audit and Assurance Pty Ltd

Gede Barone Director Address: Level 12, 111 Elizabeth Street, Sydney NSW 2000 Dated at Beecroft on the 25th day of August 2021.

Pennant Hills Golf Club Ltd ABN 12 000 037 856

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021

Note

2021 $

2020 $

2,487,926 4,550,148 396,086 -

2,010,315 4,055,120 443,063 1,887

7,434,160

6,510,385

109,259

97,337

3 3 3

(1,176,828) (158,631) (76,050)

(895,156) (105,797) (60,101)

(1,411,509)

(1,061,054)

(1,047,626) (435,998) (273,647) (1,790,963) (642,128) (1,122,501) -

(947,669) (432,972) (249,340) (1,850,436) (602,489) (1,059,643) (75,118)

(5,312,863)

(5,217,667)

(6,724,372)

(6,278,721)

Surplus before Income Tax Income Tax Expense

819,047 -

329,001 -

Surplus after Income Tax

819,047

329,001

Pennant Hills Golf Club Foundation Donations Received Foundation Monies Expended

57,852 (22,477)

15,899 (9,341)

35,375

6,558

854,422

335,559

Revenue Sales Revenue Subscriptions, Entrance Fees, Golf Services and Other Government Grants Clubhouse Upgrade Levies and Donations

2 2 2 2

Total Revenue Other Income Cost of Goods and Services Cost of Sales Cost of Rendering Services Member Benefits Expenses by Function Bar and Catering Expenses Pro Shop Expenses Golf Services Expenses Course Expenses House Expenses Administration Expenses Write Down in Clubhouse Assets

Total Costs and Expenses

Surplus/ (Deficiency) from Pennant Hills Golf Club Foundation

Net Surplus for the Year Transfer from/(to) Pennant Hills Golf Club Foundation Reserve Transfer from/(to) Memorial Gates Reserve Transfer from/(to) Course Development Reserve

(35,375)

(6,558)

(1,500) (25,243)

(1,500) 20,996

Surplus Attributable to Members

792,304

348,497

792,304

348,497

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

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021

ASSETS Current Assets Cash and Cash Equivalents Trade and Other Receivables Inventories Other Assets

Note

2021 $

2020 $

15(a) 4 5 6

250,244 858,599 213,621 166,029

223,360 708,142 151,813 268,220

1,488,493

1,351,535

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

10,431,145

10,630,854

Total Non-Current Assets

10,431,145

10,630,854

Total Assets

11,919,638

11,982,389

1,011,322 76,023 152,959 2,696,175 102,232

844,899 71,757 136,174 2,427,437 108,780

4,038,711

3,589,047

683,227 23,902 945,227

2,064,084 36,039 919,070

Total Non-Current Liabilities

1,652,356

3,019,193

Total Liabilities

5,691,067

6,608,240

NET ASSETS

6,228,571

5,374,149

MEMBERS’ FUNDS Retained Earnings Pennant Hills Golf Club Foundation Reserve Memorial Gates Reserve Course Development Reserve

6,114,851 77,711 36,009

5,322,547 25,336 15,500 10,766

6,228,571

5,374,149

LIABILITIES Current Liabilities Trade and Other Payables Borrowings Provisions Other Current Liabilities Deferred Income

8 11 9 12 10

Total current liabilities Non-current liabilities Borrowings Long-Term Provisions Long Term Deferred Income

Total Members’ Funds

11 9 10

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

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021

Accumulated Funds $

Pennant Hills GC Foundation Reserve $

Memorial Gates Reserve $

Course Development Reserve $

Total Members’ Funds $

Balance at 1 July 2019 Surplus Attributable to Members Initial adjustment on adoption of AASB15 - Revenue from Contracts with Customers Initial adjustment on adoption of AASB16 – Leases Surplus from Pennant Hills GC Foundation Project - KBJF Transfer to Pennant Hills GC 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

5,338,049

18,778

14,000

31,762

5,402,589

348,497

(356,690)

(7,309)

6,558

(6,558) 1,500

6,558 -

1,500

(1,500)

1,500

(20,996)

20,996 5,322,547

25,336

15,500

(20,996) 10,766

5,374,149

Surplus Attributable to Members Surplus from Pennant Hills GC Foundation Donations Transfer to Pennant Hills GC Foundation Reserve Donations to Memorial Gates Transfer to Memorial Gates Reserve Transfer to Pennant Hills GC Foundation Reserve Utilisation of Course Development Fund Transfer from Course Development Reserve

792,304

35,375

(35,375) 1,500

35,375 -

1,500

(1,500)

1,500

17,000

(17,000)

25,243

(25,243)

25,243

6,114,851

77,711

36,009

6,228,571

Balance at 30 June 2021

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

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2021

Note

Cash flows from operating activities Receipts from members / customers Payments to suppliers and employees Interest Paid Interest Received

2021 $

2020 $

8,202,480 (6,319,416) (76,350) 1

7,119,101 (6,018,294) (127,901) 653

1,806,715

973,559

3,221

Payment for property, plant and equipment

(403,240)

(828,990)

Net cash used in investing activities

(403,240)

(825,769)

Cash flows from financing activities Proceeds from Bank Loans Repayment of Bank Loans Proceeds from Equipment Finance Repayment of Equipment Finance Repayment of Equipment Leases

1,050,000 (2,350,000) (24,961) (51,630)

1,850,000 (1,950,000) 50,500 (7,701) (48,631)

Net cash generated from /(used in) financing activities

(1,376,591)

(105,832)

26,884 223,360

41,958 181,402

250,244

223,360

Net cash generated from operating activities

15(b)

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

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

15(a)

The accompanying Notes form part of this Statement and should be read in conjunction herewith. Pennant Hills Golf Club Ltd ABN 12 000 037 856

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 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 25th August 2021 by the board of directors.

Net Current Liability Position As at 30 June 2021 the company has a net current liability position of $2,550,218 (2020: $2,237,512) primarily due to the large balance of subscriptions paid in advance. The subscriptions paid in advance for the 2022 year are not refundable and will be recognised as revenue over the 2022 financial year. The company has access to a bank facility of $2.95 Million (2020: $3.6 Million) which it can draw down on when cash flow requires it. The facility will expire in July 2022. The company will be discussing a facility extension with its bankers. The directors anticipate a successful renegotiation prior to the expiry of the current facility. 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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 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 straightline basis over the term of the lease. PHGC Foundation donations and contributions made are credited to the PHGC Foundation 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 2022 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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 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, Jobkeeper and BAC Apprentice funding 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) 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 2022

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTE 2: REVENUE & OTHER INCOME SALES REVENUE Bar Sales Catering Sales

2021 $

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 & Affiliation Fees 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 Federal BAC Apprentice Funding – COVID 19 Stimulus Clubhouse Upgrade Levies & Donations Donations to Clubhouse Upgrade

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

Pro Shop Sales TOTAL SALES REVENUE

2020

974,930 880,619 1,855,549

762,686 775,269 1,537,955

632,377

472,360

2,487,926

2,010,315

413,824 307,070 720,894

359,771 205,381 565,152

215,403 234,145 449,548

162,005 180,893 342,898

21,371

20,323

3,983

4,286

3,145,118 1 51,395 2,841 3,199,355

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

96,526 48,412 10,059 154,997

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

4,550,148

4,055,120

50,000 300,000 46,086 396,086

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

1,887 1,887

7,434,160

6,510,385

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: REVENUE & OTHER INCOME (continued)

2021

2020

107,759

3,221 92,616

1,500 109,259

1,500 97,337

19,900 1,300

20,050 1,670

261,741 341,208

225,061 387,874

602,949

612,935

75,118

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 Plant, Equipment & Course Irrigation System Total Depreciation and Amortisation Impairment of Assets Write Down in Clubhouse Assets

Interest Paid & Payable Bank Loans Equipment Finance

56,038 11,307

115,950 13,203

67,345

129,153

391,895 351,732

288,947 291,496

743,627 433,201

580,443 314,713

1,176,828

895,156

42,820 115,811 158,631

24,553 81,244 105,797

76,050 76,050

60,101 60,101

Cost of Sales Bar Catering Pro Shop

Cost of Rendering Services – Pro Shop Cart Running and Hire Costs Repair and Service Costs & Teaching Commission

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

Pennant Hills Golf Club Ltd ABN 12 000 037 856

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2021

2020

859,019 (420)

716,166 (8,024)

858,599

708,142

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

332

8,024

(332)

8,024

Opening Balance

Charge for the Year

Amounts Written Off

Closing Balance

8,024

3,064

(10,668)

420

1-Jul-19 Trade Receivables

1-Jul-20 Trade Receivables

NOTE 5: INVENTORIES Finished Goods – at Cost

30-Jun-20

30-Jun-21

2021

2020

213,621

151,813

NOTE 6: OTHER ASSETS Prepayments Government Grants Receivable

124,267

112,220

41,762

156,000

166,029

268,220

Pennant Hills Golf Club Ltd ABN 12 000 037 856

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 7: CORE PROPERTY, PLANT & EQUIPMENT Freehold Land $ Balance at 1 July 2019

9,500

Plant and Equipment $

Capital Work in Progress $

1,972,901

1,744,802

6,578,569

Buildings

Adoption of AASB 16 - Leases

184,145

Total $ 10,305,772 184,145

Additions at Cost

715,526

106,661

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)

9,500

7,926,673

2,687,878

6,803

10,630,854

206,407

196,834

403,240

Disposals

Transfers

6,803

(6,803)

Depreciation Expense

(261,741)

(341,208)

(602,949)

9,500

7,664,932

2,559,879

196,834

10,431,145

Carrying Amount at 30 June 2020 Additions at Cost

Carrying Amount at 30 June 2021

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 2021

2020

Trade Payables

439,317

225,594

Sundry Payables and Accrued Expenses

572,005

619,305

1,011,322

844,899

NOTE 8: TRADE AND OTHER PAYABLES

Trade and Other Payables

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

110,679

122,465

42,280

13,709

152,959

136,174

23,902

36,039

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

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

2021 $

2020 $

36,800

48,412

65,432

60,368

102,232

108,780

628,423

665,223

316,804

253,847

945,227

919,070

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. Entrance fees received are 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. Pennant Hills Golf Club Ltd ABN 12 000 037 856

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTE 11: BORROWINGS

Current

2021 $

2020 $

21,209

20,127

54,814

51,630

76,023

71,757

600,000

1,900,000

46,848

72,891

36,379

91,193

683,227

2,064,084

Commercial Loan - Equipment Leases – Equipment

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

Facilities

In the current year the Company’s NAB borrowing facility reduced to $3.4 Million in October 2020, $2.95 Million in April 2021 and will reduce to $2.35 Million in April 2022. The facility expires in July 2022. The Company has previously 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. The Company has operating leases for carts and office printers being recorded as lease borrowings.

Security The Company’s primary banker holds registered first mortgages and floating charges over the assets and uncalled capital of the Company. The Company’s equipment financier holds a security interest over the equipment purchased for the duration of the financing agreement.

NOTE 12: OTHER LIABILITIES

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

Pennant Hills Golf Club Ltd ABN 12 000 037 856

2021

2020

2,434,218

2,175,486

191,400

198,940

33,209

25,925

9,199

2,003

28,149

25,083

2,696,175

2,427,437

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTE 13: PENNANT HILLS GOLF CLUB FOUNDATION RESERVE The Pennant Hills Golf Club Foundation is a fund operating under a deed of trust and administered by nominated trustees in accordance with the deed. The fund raises income by way of gift, donation, legacy, bequest or otherwise. The fund currently has three specific projects registered with the Australian Sports Foundation to receive donations for the development of promising junior members, the build of the second entry memorial gates and the build of an indoor teaching facility. The Club has established a “Pennant Hills Golf Club 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 funds are solely for the benefit of the nominated projects where specifically identified for the project purpose or where not identified as general funding for purposes identified by the trustees. Unspent monies at the close of the financial year being the opening position for the year plus the contributions and less expenditure are represented in the Pennant Hills 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 of contributions of $35,375 (2019: $6,558) together with the balance of the Memorial Gates Reserve were transferred into the reserve.

Kendal Binns Junior Fund

Memorial Gates

Indoor Teaching Facility

General

Total PHGC Foundation

Balance at 1 July 2019

18,778

Donations received

15,899

Foundation funds expended

(9,341)

Balance at 30 June 2020

25,336

17,000

22,617

3,437

22,649

9,150

57,853

Foundation Funds expended

(19,134)

(2,503)

(21,637)

GST Recoveries/(payments)

744

(162)

(1,651)

228

(841)

29,563

20,275

20,998

6,875

77,711

Transfer from Memorial Gates reserve Donations and ASF grants received

Balance at 30 June 2021

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 $ $ $ 2020 Total Compensation 640,659 640,659 2021 Total Compensation Pennant Hills Golf Club Ltd ABN 12 000 037 856

646,499

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTE 14: RELATED PARTIES (Continued) (b) Transactions with Related Parties During the year the Company incurred expenses related to future course development from a firm over which one of the directors exercises significant influence. The amount billed for this service amounted to $9,000 (2020: Nil), based on normal market rates and was fully paid as of the reporting date. Apart from transactions related to activities as members which include golf, golf services and food and beverage operations the company has incurred no other material transactions with related parties.

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

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 Amortisation of Tower Rental Income Received in Advance Amortisation of Entrance Fees Received in Advance Net Cash Provided by Operating Activities before Change in Assets & Liabilities

Change in Assets and Liabilities (Increase)/Decrease in Receivables (Increase)/Decrease in Inventories (Increase)/Decrease in Other Assets Increase/(Decrease) in Accounts Payable Increase/(Decrease) in Other Liabilities Cash Flow from Operations Pennant Hills Golf Club Ltd ABN 12 000 037 856

2021 $

2020 $

250,244

223,360

854,422

335,559

(3,221)

602,949 4,649 (36,800) 68,020

612,935 20,673 75,118 (36,800) (42,475)

1,493,240

961,789

(150,457) (61,808) 102,191 166,423 257,126

(155,181) (5,732) (78,903) 157,932 93,654

1,806,715

973,559

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTE 16: FAIR VALUE MEASUREMENT Net Fair Values Fair Value Estimation The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their carrying values as presented in the balance sheet. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below. 2021 Footnote

Financial Assets Cash and Cash Equivalents Trade and Other Receivables

(i) (i)

Total Financial Assets Financial Liabilities Trade and Other Payables Borrowings Total Financial Liabilities

(i) (i)

2020

Net Carrying Value

Net Fair Value

Net Carrying Value

Net Fair Value $

250,244 858,599

223,360 708,142

1,108,843

931,502

1,011,322 759,250

1011,322 759,250

844,899 2,135,841

1,770,572

2,980,740

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 $0.6 million drawn against a current $2.95 million bank facility. The current drawings interest period applies until 22 October 2021 at which time it will be reset for a period 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 borrowings 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 2023 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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 NOTE 17: CAPITAL AND LEASING COMMITMENTS

Operating Lease Commitments The Company’s future minimum operating lease payments are as follows: 2021

2020

Within 1 Year

58,795

1 to 5 years

37,217

96,012

154,807

4,819

11,984

91,193

142,823

Minimum Lease Payment Due

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 $54,814 (2020: $51,630) and non-current borrowings of $36,379 (2020: $91,193). The present value of operating leases is 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. During the current year $7,167 (2020: $10,164) was charged to interest cost and $51,630 (2020: $58,795) allocated to reduce principal for operating leases.

Equipment Finance Commitments 2021

2020

Within 1 Year

24,269

29,103

1 to 5 years

49,792

74,061

103,164

6,004

10,146

68,057

93,018

Payable – Minimum Repayments

Less: Future Finance Costs

Equipment finance commitments are shown in Borrowings (Note 11) as current borrowings of $21,209 (2020: $20,127) and non-current borrowings of $46,848 (2020: $72,891).

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

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021 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 2021 there were 1,246 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 2021 or 2020.

NOTE 21: COMMITMENTS At 30 June 2021 the company has no material commitments which will be paid in the 2022 year.

NOTE 22: EVENTS AFTER THE BALANCE SHEET DATE The NSW Government have announced that businesses experiencing reduced demand or closure due to COVID-19 public health orders restrictions may be eligible for a one-off cash flow support grant for business costs incurred during the first 3 weeks of the Greater Sydney lockdown (26 June 2021 to 17 July 2021). Further, the NSW Government announced JobSaver payments to impacted businesses from week 4 of lockdown (18th July 2021 onwards) to maintain their NSW employee headcount. The Club has registered for both the Business Grant and JobSaver programs and at the date of issue of the financial report has commenced receiving payments. The Directors have reviewed the likely impact of the grant and JobSaver payments and the impacts of COVID19 trade restrictions on the assets and liabilities at 30 June 2021 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 nonrefundable 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 25th day of August 2021 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

COMPILATION REPORT The additional financial data presented on pages 53 to 55 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 2021. 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 25th day of August 2021.

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

SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

SUBSCRIPTIONS AND OTHER OPERATING INCOME Subscriptions Affiliation Fees Interest Received Finance Fees Received Other Income Gain on Disposal of Property, Plant & Equipment Surplus BAR AND CATERING TRADING STATEMENT Sales Cost of Goods Sold Gross Margin Margin % Less: Salaries and On Costs Other Direct Expenses Bar & Catering Expenses Room and equipment hire and other function revenue Surplus / (Deficit) PRO SHOP TRADING STATEMENT Equipment & Merchandise Sales Cart Hire Revenue Services Revenue Pro Shop Income Cost of Goods Sold – Equipment & Merchandise Cart Hire Running Costs Services Costs Including Teaching Commissions Cost of Goods and Services 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

2021

2020

3,093,463 51,655 1 51,395 2,841 -

2,891,733 653 46,425 5,530 3,221

3,199,355

2,947,562

1,855,549 (743,627)

1,537,955 (580,443)

1,111,922

957,512

59.9%

62.3%

(945,448) (102,178)

(849,233) (98,436)

(1,047,626)

(947,669)

21,371

20,323

85,667

30,166

632,377 215,403 234,145

472,360 162,005 180,893

1,081,925

815,258

(433,201) (42,820) (115,811)

(314,713) (24,553) (81,244)

(591,832)

(420,510)

490,093

394,748

45.3%

48.4%

(370,724) (65,274)

(366,620) (66,352)

(435,998)

(432,972)

54,095

(38,224)

SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

GOLF SERVICES Member Competition Fees Member Green Fees Corporate Green Fees Visitors Fees Golf Services Income Member Benefits – Visitor Passes & Business Golf Cost of Services NSWGA and WGNSW affiliation fees Membership Induction Expenses Representative players expenses Talent development Trophies and prize vouchers Salaries and on costs Fixture book, bag tags and score cards Expenses

Surplus

2021

2020

351,926 61,898 148,959 158,111 720,894

324,104 35,667 104,195 101,186 565,152

(76,050)

(60,101)

(76,050)

(60,101)

(55,331) (14,704) (25,148) (71,076) (94,592) (12,796)

(58,572) (459) (21,233) (707) (56,451) (101,381) (10,537)

(273,647)

(249,340)

371,197

255,711

(854,936) (21,411) (140,118) (183,275) (8,940) (41,068) (77,437) (143,370)

(923,746) (19,802) (97,060) (194,852) (17,567) (49,798) (93,991) (111,644)

(1,470,555) (20,416)

(1,508,460) (15,520)

(1,490,971)

(1,523,980)

(127,399) (90,077)

(120,945) (91,899)

(217,476)

(212,844)

(1,708,447)

(1,736,824)

COURSE Salaries and on costs Staff training, catering and uniform costs Equipment repairs and maintenance Course maintenance materials Water usage Fuel and energy costs Depreciation Other course expenses Improvement projects Water reclamation plant Operating Costs Depreciation

Total Course Expenses

Pennant Hills Golf Club Ltd ABN 12 000 037 856

SUMMARISED TRADING ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

HOUSE & LOCKER ROOMS Locker Fees Total Income Catering entertainment and social costs Building maintenance costs Cleaning and laundry costs Depreciation Salaries and on costs Other house costs Total Expenses Net House Expenses ADMINISTRATION Salaries & on costs Interest Paid Finance Costs Depreciation of office equipment Insurance Postage and telephone Audit and accounting fees Computer expenses Printing and stationery Marketing and advertising Other expenses Administration Expenses

2021

2020

3,983

4,286

3,983

4,286

(35,775) (135,877) (105,719) (359,820) (4,937)

(26,059) (108,018) (107,213) (353,736) (7,463)

(642,128) (638,145)

(602,489) (598,203)

(565,529) (67,345) (62,905) (26,929) (103,435) (16,746) (21,200) (81,160) (23,977) (12,457) (140,818)

(540,203) (129,153) (52,376) (24,231) (89,227) (23,304) (21,720) (75,375) (16,133) (26,569) (61,352)

(1,122,501)

(1,059,643)

241,221

(199,455)

48,412 96,526

49,129 107,182

10,059

21,809

1,887

396,086

443,063

(75,118)

OPERATING SURPLUS / (DEFICIENCY) FOR THE YEAR

NON-OPERATING REVENUE AND (EXPENSE) Telecommunications Tower Rent Entrance Fees

Write Down in Clubhouse Assets

Total Non-Operating Revenue and (Expense)

551,083

547,952

SURPLUS ATTRIBUTABLE TO MEMBERS

792,304

348,497

Forfeited F&B Levies Clubhouse Upgrade Levies and Donations Government Grants

Pennant Hills Golf Club Ltd ABN 12 000 037 856

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Pennant Hills Golf Club Ltd ABN 12 000 037 856