PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee] ABN 22 000 156 534

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ANNUAL REPORT 2017

2 Beach Road PALM BEACH NSW 2108

Telephone [02] 9974 4079 Fax [02] 9974 1091

Email: eb:

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PALM BEACH GOLF CLUB LTD[A Company Limited by Guarantee]

ABN 22000 156 534

COURSE SPONSORS

Palm Beach Golf Club Ltd wishes to acknowledge the invaluable support and generosity of its' course sponsors through their Tee advertising commitment:

Hole # 1.Trentham Estate

Hole # 2.Available

Hole # 3.Available

Hole #4.Available

Hole # 5.Ollie’s Autos

Hole #6.URM Waste Management

Hole # 7.Available

Hole # 8. Avalon Autos

Hole # 9.Barrenjoey Insurance Brokers

Eagles NestAvalon Physiotherapy Centre

Doves NestAvailable

VOLUNTEERS & CONTRIBUTORS

In addition, we thank all the volunteer members who continuously help to reduce our workload.

To these Sponsors and willing Volunteers, the Club will always be in your debt

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PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee]

ABN 22000 156 534

ANNUAL REPORT

for the year ended 31 December 2017

CONTENTS / Page
Key information / 4
President's report / 5
Treasurer’s report / 5-6
Greens report / 6
House report / 6
Captain’s report / 7
Golf Professional’s report / 7
Vale / 7
Membership & Marketing / 8
Membership details / 8
Competition Results / 9
Financial Report Financial Statements
Director’s report / 10-12
Auditor’s independence declaration / 12
Statement of comprehensive income / 13
Statement of changes in equity / 13
Statement of financial position / 14
Statement of cash flows / 15
Notes to the Summary Statements
Note 1 Statement of significant accounting policies / 16-18
Note 2 Cash and cash equivalents / 19
Note 3 Trade and other receivables / 19
Note 4 Inventories / 19
Note 5 Other assets / 19
Note 6 Property, plant and equipment / 19-20
Note 7 Intangible assets / 21
Note 8 Trade and other payables / 21
Note 9 Current tax liabilities / 21
Note 10 Financial liabilities / 21
Note 11 Provisions / 21
Note 12 Other liabilities / 22
Note 13 Reserves / 22
Note 14 Director’s benefits / 22
Note 15 Commitments / 22
Note 16 Registered clubs act reporting requirements / 23
Note 17 Related party transactions / 23
Note 18 Cash flows / 23-24
Note 19 Key management personnel compensation / 24
Director’s declaration / 25
Independent audit report to the members / 25
Supplementary Information
Extract from the statement of comprehensive income / 26
Profit & loss account / 27-29

PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee]

ABN 22000 156 534

KEY INFORMATION

Address:2 Beach Road
PALM BEACH NSW 2108
Telephone:[02] 9974 4079
Email:
Website:
Life Members:Mr A. Berry
Mr L. Uren / Mr M. Walker
Mrs J. Palmer / Mr J. Kerr
Mr A. Berry [Jnr] / Mr R. Head
Mrs J. Warner
Executive: President: / Stephen Misdale
Vice President: / Rhonda Mortimer
Club Captain: / John McLean
Treasurer: / Stephen Farr
Senior Officer: / Renae Fitzgerald
Patron: / Chris Shaw
Auditor: Fraser Lovett / Solicitor: Chris Shaw
A F Lovett / Shaw Reynolds Lawyers
P O Box 72 / Level 29 Chifley Tower
FRENCHS FOREST, NSW 1640 / 2 Chifley Square SYDNEY, NSW 2000
Telephone:[02] 9451 6364 / Telephone:[02] 9375 2220
Email:

Committees:

[President: Ex officio on all committees]

Executive CommitteeFinance CommitteeGreens Committee

Steve Misdale [Chair]Stephen Farr [Chair]Steve Misdale [Chair]

Rhonda MortimerRhonda MortimerJohn McLean

Stephen FarrJustine PaulBob Quin

John McLeanDaniel Hill

Match & Jnr Development CommitteeMembership & MarketingHouse Committee

John McLean [Chair]Rhonda Mortimer [Chair]Bob Quin [Chair]

Steve MisdaleJustine PaulJustine Paul

Bob QuinStephen FarrDaniel Hill

Daniel Hill

AGU RepresentativeCourse Curator

Gina PearceBayview Golf Club

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PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee]

ABN 22000 156 534

PRESIDENT'S REPORT

It’s been an absolute pleasure to preside over a Board of Directors as the one we had during the 2017-2018 period. We planned well - worked well and delivered on many a front. Here are some of the achievements:

  1. Updated golf programme
  2. Three new couch tees for Members
  3. New course furniture from David Golf starting to arrive in week 16
  4. New golf carts
  5. Hole Sponsorship
  6. New POS tills
  7. New Member FOB system
  8. New Cat 6 wiring throughout the Club and to the ProShop
  9. New Office location and computers
  10. New inside painting of the Club and new carpet
  11. Obtaining the Government Grant we applied for
  12. The sale of the poker machines
  13. The sale of the Nib of land although not as yet complete as of mid-April.

All of this could not have been possible without careful planning and thoughtful budgeting. Our thanks go to our Treasurer, Stephen Farr, for his invaluable input. The perseverance and tireless efforts of Renae Fitzgerald, Nikki Lowe and Alex Hewett in the office has been outstanding. Without this commitment and that of our Members of the Board we would not be here where we are today. I trust that the Board delivers on the planned projects ahead and continues to look to the future to make the Club a success as it so rightly deserves for its Members and the playing public.

In May we will be installing a new irrigation system. The pipework will be poly welded and compression fitting system computer controlled and can be accessed remotely. The fairway pipework will be a dual system with head to head watering. This will give the fairways complete water coverage and in turn produce better growth results and attract more players. The system is projected to last at least 40 years and will save the Club money due to its longevity and efficient and effective watering. I strongly believe that this is a must for the prolonged future and presentation of the Course.

Our thanks go to Craig Bevan and other staff from Bayview Golf Club for their genuine efforts in presenting a golf course that I haven’t seen before at Palmie. Striped fairways-walk behind mowing of the greens-striped greens-rolled greens-all make for an attractive presentation and one that blends in so well with our beautiful surroundings here in Palm Beach overlooking the picturesque Pittwater.

A special thank you to all of our members both the Ladies and the Gents who volunteer to do the odd jobs around the Club and on the course. To our Patron, Chris Shaw, we very much appreciate the work you have put in this year. It does not go unnoticed and so to our Lady President, Joan Lester, and Lady Captain, Jan Watts. Your work too does not go unnoticed and we thank you for your efforts throughout the year.

All in all, it’s the members that make a Club and I thank you for being part of it.

Stephen Misdale

President

TREASURER’S REPORT

The Club had a Net Loss of ($33,910) for the year ended 31 December 2017. This compares to a loss ($177,994) in 2016.

Total Net Income was $1,067,799 up $77,807 or 8% on last year summarised as follows: -

  • Members Subscriptions of $136,062 down $38,621 on last year. Full Playing members fell by 41 from 200 in 2016 to 159 in 2017.
  • Competition Fees (net) were $57,300 up $1,789 for the year.
  • Bar Trading net profit was $34,965 down by $14,517 or 30% on 2016. Gross Sales fell by $38,383 and appear to be partly a result of lower member numbers, reduced patrons dining in our restaurant and lower patronage to organised member functions.
  • Profit on Sale of Fixed Assets of $111,420. This was the net proceeds from the sale of 6 of our poker machine entitlements.
  • Government Grants. The Club successfully applied for a Government Grant of $31,000 to assist in re-roofing the balcony.

Total Expenses were $1,101,707 down by $66,277 or 6% on last year.

PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee]

ABN 22000 156 534

The Board has worked tirelessly this year to reduce expenses wherever possible. This is evident in almost all areas of the Club’s trading. This has also been done without a reduction in the amenities offered to members.

Conclusion

2017 has again seen a reduction in membership. A number of initiatives have been introduced to reverse this trend and attract golfers to the Club. I think all members will agree that our course in in the best condition it has ever been. This is very evident in the gradual increase in Competition Fees $57,300 (55,511 in 2016).

I would like to thank Nikki, Renae and Alex for their continued support and efforts in maintaining your Club to the high standards we have all enjoyed.

Happy golfing in 2018

Stephen Farr

Treasurer

GREENS REPORT

I’m sure the majority of our Members are in agreeance with me that the course hasn’t looked as good as it is, and this is mainly due to the efforts of Craig Bevan and his band of guys from Bayview Golf Club. I am pleased to announce that BGC will again be our course contractor for another three years from September this year. The contract will also include the new irrigation system and work on this project will start in May with some of the materials already on site. With the dedicated efforts of Craig and his team along with the new irrigation system we will be able to present a course that befits the beautiful area of Palm Beach and have a course that the Members and the public can play on and enjoy for a long time to come.

New course furniture has started to arrive. This includes new seats-garbage bins-sand bins-and hole signs that will include hole names and sponsorship details. It will be uniform throughout the course and will enhance the overall appearance of the course something that has been missing for a while.

We have a plan in place to upgrade the rest of the tees and bunkers in the coming months so look out for that.

I’ll take this opportunity to sincerely thank all of the Members both the Ladies and the Men that assisted our green staff with the odd jobs around the course. Your efforts make a difference not only to the course but also makes for a happy Club environment.

Happy Golfing.

Stephen Misdale

Chairman

HOUSE REPORT

I have enjoyed being able to assist our Club over the past year in completing quite a number of maintenance/repair tasks to ensure we present as a desirable venue for members, guests, diners and function attendees.

The most visual of projects completed are: -

a)Repairs to our ailing “Vergola” deck roof.

These repairs overcame (on a temporary basis) problems with leakage and secured the louvres against displacement by high winds whilst hiding unsightly corrosion to the lower ends of the louvres. This enabled bookings to be taken confidently for weddings and other functions, which at this time are the lifeblood of our Club. The Board has been successful in obtaining a government grant which will share the cost of a replacement roof. This work is expected to be undertaken mid-year.

b)Fabrication and installation of removable sound attenuation panels to the western end on the deck to lessen any noise impact on our neighbours to the west of our clubhouse during functions, band nights etc.

All works carried out have been at “materials only” cost to the Club. I thank those members who have lent a hand when assistance was requested, especially Mark Hill who has been of great assistance with a large number of projects.

Bob Quin
Chairman

PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee]

ABN 22000 156 534

CAPTAIN'S REPORT

At this time, I would like to thank all those who have given their time, energy and effort to ensure our club has flourished. The Club has once again provided the opportunity for our members to enjoy their golf course and clubhouse in an ever-improving environment. This has been achieved by a pro-active Board with the continued input of Renae, Nikki and Alex.

To the volunteers who have given their time to assist in course maintenance, on behalf of the Board and PBGC members, I would like to say a very big “THANK YOU” for all your efforts.

To all the champion trophy winners, monthly medal winners in your respective divisions, congratulations on your success.

Palm Beach entered teams in the Warren and Gibson shield events. Once again, all matches were of a highly competitive nature with some encouraging results. This is a competition for B and C grade players to experience other club courses, to meet likeminded golfers and enjoy some rivalry. I would like to encourage participation.

Our Major Pennant Team who won their division 4 trophy last year competed in division 3 this year. The step up proved challenging with close results not being in our favour. A close loss in the relegation match has Palm Beach competing in division 4 again. Their effort was not diminished by the results and we thank the players and organisers for their commitment.

The Master Pennants was again a highly competitive division. Thank you to all who committed their time and energy and congratulation to those individual match winners.

The introduction of technology for game day listing, score card printing etc. has been warmly embraced by the members and pro shop who have the responsibility of starting and finishing all competitions. Your ability to track your performances, review your handicap and register to play have made the golfing experience even more enjoyable.

I would like to thank our President, Steve Misdale and our Treasurer Stephen Farr, for an incredible effort in putting this in place.

Thanks also go to Alan and his staff in the pro shop for all their efforts during the year.

To all our members, thank you for your support, you are indeed our greatest asset and with your continued commitment, Palm Beach Golf Club will remain a Peninsula icon.

John McLean

Captain

GOLF PROFESSIONAL'S REPORT

This year Sam Phillips moved to greener pastures. Sam came to work in the pro shop from Orange. He developed into a talented young golfer and a well-respected member of the staff. He left to follow his dreams of becoming a tour player going to Canada to get his tour card.Unfortunately, he missed out and is now forging a teaching career back in Orange.

The addition of card printing was introduced with a few hiccups to start with but with addition of a few cables it is smooth sailing.

Competition fields are still an issue both on Thursday and Saturday. Hopefully this will change in the winter months and the prospect of an increase of players from Bayview. We had a new staff member join us this year Rod Brown (ex-Bayview Professional). Rod is well known and has a wicked sense of humour.

To my other staff, Robin (my right hand) and Rodger, a huge thank you for your efforts and dedication.

Alan Berry

Head Professional

VALE

In 2017 the Club was saddened to hear of the loss of Jack Gale, Rita Hobbs, Joan Palmer, Brian Cross (Cpt) and Doug Hampson.

We mourn the passing of these much-valued members, and to their loved ones, we extend our deepest sympathy.

PALM BEACH GOLF CLUB LTD

[A Company Limited by Guarantee]

ABN 22000 156 534

MEMBERSHIP& MARKETING REPORT

Another difficult year with very little movement in membership. Various ideas have been investigated but unfortunately, they have not been fruitful.

The number of Full Playing men was down by 27 however 5 of our Full Playing men attained Senior membership in 2017. Some of them also moved to a Premium House membership. Full Playing women numbers were down by 14 however most of these took up the Premium House category.

You must all realise that this represents a huge loss in membership revenue.

We have tried several promotions, Mother’s Day, Father’s Day and several specials for shorter memberships as the year progressed. We had a stall at the very popular Avalon Market Day offering special discounts however this did not attract any new Full Playing members. Having said that, we gained quite a few new House memberships and lots of Junior membership enquires. I would like to thank Justine, Renae & Tiffany for offering their time at the stall. Also, Bob Quin and Alex (set-up and set-down) and Stephen Farr who was in attendance for the entire day. Sam from Faux Flowers did a great job in making our stand very attractive.

Gaining new members in any Golf Club is difficult and has been for the last few years. There needs to be a combined effort incorporating Board members, Office, Restaurant, Bar Staff and in particular thePro Shop Staff all working together to present the Palm Beach Golf Club in a positive light.

We also must reach out to members current, lapsed and future to help us present some dynamic ideas to make this Club a force to be reckoned with.

Rhonda Mortimer
Chair

MEMBERSHIP DETAILS as at 31 December 2017

Group / 2017 / 2016
Men / Full playing / 111 / 138
Senior full playing / 19 / 14
Life / 5 / 5
Gold / 2 / 2
Platinum / 12 / 12
Premium House / 33 / 19
Total / 182 / 190
Women / Full playing / 48 / 62
Senior full playing / 7 / 7
Life / 2 / 2
Gold / 0 / 0
Platinum / 2 / 2
Premium House / 25 / 12
Total / 84 / 85
Junior / New Junior / 36 / 32
Under 16-18 / 0 / 1
Under 19-20 / 1 / 1
Student / 0 / 5
Intermediate 21-25 / 1 / 1
Total / 38 / 40
Other / House / 327 / 301
Swingers / 0 / 0
Overseas / 1 / 2
Country / 3 / 3
3 Month Introductory / 5 / 2
Total / 336 / 308
Total Club Membership / 640 / 623

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