FINANCE REPORT 2006

A satisfactory result was achieved for the past 12 months. As expected a cash deficit occurred.

INCOME

The leasing of the bar and catering to Country Caterers has been a success for both parties. The Club now has a guaranteed income each year and with more people using the clubhouse an increase in green fees, gaming machine revenue and membership would hopefully be the result. A total of $27,000 sponsorship was received during the year from gaming machine funded trusts. This money was received to fund green keeping contract, tables and chairs, ball washers and drinking fountain. Thanks to Neville for his efforts in obtaining these funds.  The large increase in membership the club obtained in Aug/Sep 2005 was not matched in 2006, hence the reduction in subscription income despite an increase in the base subscription. A very good response to the hole signage netted the Club $18,500.

EXPENSES 

A large increase in several expenses has resulted in a larger than hoped for loss. An increase in advertising and signage was in part due to $7200 spent on the front entrance signage (partly funded from gaming trust sponsorship shown in last years financial statements). A renegotiated contract after 3 years has resulted in an increase in the green keeping contract. Course development included $11,000 for asphalting ($10,000 funding received) and $5,000 for spraying. Repairs and maintenance on the clubhouse dropped $6,600 due mainly to the cost of cleaning now being the caterer’s responsibility. An increasing wage bill is a concern.

CAPITAL EXPENDITURE

Upgrading gaming machines           29,610

Irrigation upgrade                                2,421

Mini ezy draw                                           710

Gaming machine stools                          560

Tables and chairs                                 6,129

Ball washers                                          4,163

Drinking fountain                                   1,250

FINANCING

The term loan from SBS of $232,726 is at a fixed rate of 7.85% until November 2007 and the SBS flexiloan of $113,020 is currently at 9.35%.

BUDGET

The present Board are confident $30,000 of gaming machine sponsorship can be obtained in the next 12 months. Hole sponsorship of $7,500 includes sale of advertising on ball washers of $4,500. An increase of $15 per member has been allowed for in subscriptions.

FINANCIAL OUTLOOK

The club now has a course and clubhouse to be proud of, and restraint from further major expenditure would be advised in the next couple of years. The clubs main emphasis now should be the centennial celebrations and trying to reduce debt. 

John Walter