2011 Annual Report - Cronulla Golf Club

TREAsURER’s REPORT
The profit from the normal trading operations of the club was $317,390 compared to the profit of $634,508 for the
previous year.
However, the Board decided that it was appropriate to write off the full costs of recent expenditure on improvements
to the course amounting to $2,022,191. As a result the accounts show a loss of $1,704,801 for the year.
In the prior years, whilst work was being carried out, the expenditure was capitalised and amortised initially over 20
years and changed to 50 years in 2010. As the work on the course has now been completed, the board considered
it appropriate to review the accounting treatment of Course Improvements.
Accounting Standard AASB116 deals with the appropriate treatment of Property, Plant & Equipment (which would
include Course Improvements). The standard allows for either the capitalisation and depreciation of the works
over their useful life (as was adopted in previous years) or the immediate write off of the expenditure. After due
consideration, the Board decided it was appropriate to write off the total cost of the works against this years
accounts.
It is also important to realise that this action has no effect on our cash position as these costs were incurred and
paid for in prior years.
At the same time the Board discussed whether it was appropriate to have the land re-valued and to bring to
account any increase as an extraordinary gain for the year. As this valuation would cost in the vicinity of $10,000
and would need to be made every 3 to 4 years it was agreed that this was not really necessary.
Detailed Trading Results appear at the end of this publication.
The main factors influencing the result for the year were as follows.
Membership
• Subscriptions at $2,025,972 were 2.5% above last year’s amount of $1,975,555. As members are aware we
had difficulty filling vacancies in various membership categories during the year which meant revenue was
lower than expected. There are still vacancies in most membership categories.
• The net result after deducting affiliation fees was $1,970,119, last year $1,919,064.
Bar
• Bar Sales for the year at $591,970 were $22,471 higher than last year.
• Costs were up from $188,574 to $197,774 due to higher Staff Costs.
• The profit from Bar Trading was $145,813 an increase of $2,337 over last year’s result.
• Margins for the year were the same as last year – 58%.
Poker Machines
• Net revenue was $59,785 an increase of $13,112 over last year.
• Costs were $1,348 lower than last year.
• The trading profit was $49,966 compared with $35,506 last year.
Golf Operations
• The contribution from Golf Operations was $114,384 compared with $111,178 last year.
Administration and General Expenses
• Total overheads were $524,708 down from $545,340 last year.
• The main reasons for the decrease were lower spending on Bank Charges, Printing and Stationery and Staff
Costs.
Course Expenses
• Total overheads before writing off Course Improvements were $1,440,789 which was $45,402 lower than last
year. A very good result.
House
• Total overheads were $269,376 which was $45,935 higher than last year mainly due to expenditure on
Consultants $29,975. Refer to comments in the President’s Report.
CRONULLA GOLF CLUB LIMITED ABN 41 000 059 478 | 5