FINANCE REPORT 2007

As can be seen from the attached Statement of financial Performance, another large loss has occurred for the year ended 30 September 2007.

INCOME
Most of the clubs income sources have remained static or in some cases reduced. The income from the club’s gaming machines has dropped dramatically over the last few years and with further compliance costs in the pipeline it appears they will no longer be viable and may have to be sold. Income from green fees and course bookings continues to drift lower. A total of $20,500 was received from gaming machine funded trusts in the last 12 months. This money was received to fund the green keeping contract; painting the clubhouse and the centennial book.
The ability to attract new members is becoming more difficult. Income for the months of August too November when the 18 month and summer membership drives are in place has dropped from $29,000 in 2005, $21,000 in 2006 to $17,000 in 2007. The reduction in people playing golf and joining golf clubs is a national trend. There are no NZ golfers figuring prominently on the international stage anymore and therefore the profile has dropped.
The write back of the Hole In One, Juniors and Thursday Club reserves has resulted in a one off increase in income of $14,284 for the year.

EXPENSES
The full impact of the contract green keeping increase took affect this year. An increase of $20,000. The clubhouse painting increased repairs and maintenance clubhouse by $10,000. About half of the painting was funded from gaming machine trusts. Course development dropped by $23,000 after several large items of expenditure last year. Most other items of expenditure were close to budget.

CAPITAL EXPENDITURE
Ball washers 1320
Computer upgrade 600
Lighting 1237
Notice board 598

FINANCING
SBS Term Loan $225,293 @ 9.1% fixed until November 2009.
SBS Flexiloan No1 $38,691 @10.35% floating.
SBS Flexiloan No2 $100,000 @ 9.3% fixed until July 2008.

BUDGET
Hole sponsorship is up for renewal next year and should generate $15,000 in revenue.
On the payments side $10,000 has been allocated to meet outstanding centennial celebration costs. Additional money has been set a side for course development. All other items should be self-explanatory.
Most of the cash deficit of $20,000 has been recovered by way of the requested increase in member’s subscriptions.

FINANCIAL OUTLOOK
Unless someone can come up with a means of generating more income then the club will continue to struggle financially. The bank will only lend the club a certain amount of money, as the debt repayments will become too high. The members in the end will have to pay the deficit each year in a subscription increase.

John Walter

John Walter