FINANCE REPORT 2008

 
The Club is continuing to produce unsatisfactory financial results. Another large loss of $52,650 was the result for the year to 30 September 2008.
INCOME
Despite the increase in the base subscription at last years AGM, there was no increase in the total money collected. Green fees dropped over $10,000. This was possibly due too a lot of wet weather at weekends, an increase in the cost of green fees or an overall decline in the number of people playing golf. On a more positive note $30,000 was received from gaming machine funding to cover the cost of the new irrigation pump ($33,342): $9,500 for the green keeping contract and $4,440 for development of junior golf. Thanks to Neville and those involved in obtaining the funding.

EXPENSES
Expenses were kept to a minimum. Contract green keeping increased by the cost of living adjustment. Interest was up due to additional funding required to cover the short fall and irrigation power also increased. The total cost to the Club of the centennial celebrations was $5,452.
CAPITAL EXPENDITURE
The sale of the four gaming machines netted the Club $6,044. As mentioned above the irrigation pump cost $33,342 and the tables and chairs upgrade $7,633.
FINANCING
SBS Term loan $217,040 @ 9.1% fixed until November 2009.
SBS Flexi loan 1 $ 84,517 @ 9.15% floating.
SBS Flexi loan 2 $100,000 @ 9.2% fixed until July 2009.
BUDGET
The out going Board have spent some time analysing last years results and are confident the attached projected cash flow can be achieved.
Receipts
A three or five year subscription package is being proposed along with a 6% increase in the base subscription. A drive to increase green fees and course bookings will also be done. $30,000 from gaming machine charities has been budgeted to cover part of the green keeping contract.
Neville has investigated different funding avenues for the next financial year and believes in a positive outcome.
Payments
Most payments are similar to last year. Despite rates falling the cost of interest on borrowings continues to rise. The payment for the irrigation pump and receipt of money for the sale of the gaming machines occurred in October 2008 and is therefore shown in next years budget.
OUTLOOK
With the economy the way it is the next 12 months could be very difficult. We can only hope we don’t have a fall off in membership or green fee players etc. The cost of running the Club will only increase and with fewer members willing to help the wages bill will continue to rise. Less than 10% of the members do all the work and over 90% do nothing. WHICH ONE ARE YOU?

John Walter