2017 / 2018 ANNUAL REPORT

Transcription

1 2017 / 2018 ANNUAL REPORT 1

2 MEETING NOTICE: 2018 WAUCHOPE COUNTRY CLUB ANNUAL GENERAL MEETING Sunday 11 th November 2018 at 10:00am AGENDA: Wauchope Country Club Auditorium 1. Confirmation of the minutes of the previous AGM held on Sunday 26 th November President s Report 3. General Manager s Report 4. To receive, consider and adopt the Financial Statements of the Club for the year ended 30 th June Election of Directors 6. Appointment of Company Auditor for the 2018/2019 Financial Year - Nomination: Northcorp Accountants & Financial Services 7. Appointment of Honorary Solicitor for the 2018/2019 Financial Year - Nomination: Hadyn Oriti Donovan Oates Hannaford 8. To deal with Ordinary Resolutions (3) and any Special Resolutions listed in the 2017/2018 Annual Report 9. To consider recommendations from the Members as General Business 2

3 NOTICE TO MEMBERS REGARDING FINANCIAL MATTERS: Pursuant to the Wauchope Country Club Constitution: All Financial Members of the Club are able to ask questions or seek clarification on any matters relating to the Financial Statements for the year ended 30 June 2018, as contained herein. In order to facilitate the provision of accurate and complete answers to questions raised, please provide all questions relating to the Financial Statements in writing to the General Manager by no later than Friday 2 nd November NOTICE TO MEMBERS REGARDING ORDINARY AND SPECIAL RESOLUTIONS TO BE DETERMINED AT THE AGM: Pursuant to the Wauchope Country Club Constitution: 1. The First, Second and Third Ordinary Resolutions must be passed as a whole and cannot be divided into two or more separate Resolutions. 2. To be passed each Ordinary Resolution must receive votes in its favour from not less than a simple majority of those Members, who being entitled to do so, vote on a show of hands in person at the meeting. 3. Special Resolutions must be passed separately as separate Resolutions and may not be moved as Joint Resolutions. 4. To be passed each Special Resolution must receive votes in its favour from not less than a three-quarters majority of those Members, who being entitled to do so, vote in person at the meeting. 5. Voting for Special Resolutions may be by show of hands or by secret ballot. Caleb Rose - General Manager 3

4 ORDINARY RESOLUTIONS (3): First Ordinary Resolution: That pursuant to the Registered Clubs Act: a. The Members hereby approve and agree to reasonable expenditure by the Club until the next Annual General Meeting of the Club for the following activities of Directors: i. The reasonable cost of a meal and beverage for each Director immediately before or immediately after a Board or Committee meeting on the day of that meeting. ii. iii. The reasonable expenses incurred by Directors in travelling to and from Directors meetings or other duly constituted Committee meetings as approved by the Board from time to time, on production of invoices, receipts or other proper documentary evidence of such expenditure. The reasonable expenses incurred by Directors in relation to such other duties including entertainment of special guests to the Club and other promotional activities and expenses that are approved by the Board before payment is made on production of receipts, invoices and other proper documentary evidence of such expenditure. iv. The reasonable cost of provision of blazers, shirts and associated apparel for use of each Director when representing the Club. b. The Members acknowledge that the benefits in paragraph (a) above are not available to members generally but only for those who are Directors of the Club. Second Ordinary Resolution: That pursuant to the Registered Clubs Act: a. The Members hereby approve and agree to reasonable development and education of Directors until the next Annual General Meeting including: i. The reasonable cost of Directors attending the Clubs NSW or similar Annual General Meeting, conferences or similar. ii. iii. The reasonable cost of Directors attending seminars, lectures, trade display, organized study tours, fact finding tours and other similar events as may be determined by the Board from time to time. The reasonable cost of Directors attending gaming venues for the purpose of viewing and assessing their facilities and methods of operation, provided such attendances are approved by the Board as being necessary for the betterment of the Club. iv. The reasonable cost of Directors attending conferences and training sessions in relation to their role and responsibilities under the Registered Clubs Act 1976, the Corporations Act 2001 and any other relevant legislation as approved by the Board. b. The Members acknowledge that the benefits in paragraph (a) above are not available to members generally but only for those who are Directors of the Club. Third Ordinary Resolution: That pursuant to the Registered Clubs Act: a. The members hereby approve and agree to reasonable expenditure by the Club as follows: The provision of 10 reserved parking spaces at the Club for Chairman, Vice Chairman, Management and Sub Club Executives use, when attending the Club to carry out their duties. b. The Members acknowledge that the benefits in paragraph (a) above are not available to members generally but only for those who are Directors of the Club. 4

5 SPECIAL RESOLUTIONS (1) First Special Resolution: Moved: Seconded: Adolf Giacovani Member #1697 of Wauchope Country Club Peter McLeod Member #4745 of Wauchope Country Club Pursuant to clause 36.1 of the Club s constitution, I hereby submit as an item of business for the Club s 2018 Annual General Meeting, ( AGM ), the issue of public display of the Club s Life Membership board. I have only just become aware that the AGM may be scheduled for Sunday 11 November 2018 which is 35 days hence. If this request is outside of any deadline, I request your indulgence in having this matter included in the business of the AGM on the basis that I have just missed any such deadline and I have yet to see a public notice giving details of the AGM. In days gone by, any person entering the Club would be greeted by the names of our life members which was great to see. These people did a lot for this club particularly in the early days, some donating their time, heavy equipment and materials to construct buildings and sporting facilities. If it was not for these people we may not be here today. Since the club was renovated in 2012, all the Club s old honour boards have been gathering dust in remote areas of the Club. While most were probably too large to go back up where they previously were, this cannot be said of the Life Members board. Life membership is a worthy achievement and if the Club can find the space to accommodate children s play equipment in a very prominent position within the Club, then it is time for the Club to put its Life Membership board back where it belongs, on public display, to give these people the honour they deserve. We would be honoured to move and second such a motion at the Club s AGM. 5

6 WAUCHOPE COUNTRY CLUB MINUTES OF ANNUAL GENERAL MEETING: Sunday 26 th November 10:00am APOLOGIES Ian Hackney (Director), H Oriti (nominated Honorary Solicitor), B Hopkinson, S Hackney, L Hobson, P Waugh, J Loadsman, C Joyce, L Thurgate, T Hamilton, L Hosking, K Wilcox, R Wilcox, L Baker ATTENDANCE Attendance was as per the attendance register. 74 members were in attendance. IN ATTENDANCE Robert Magnussen (Auditor NorthCorp Accountants) Caleb Rose (General Manager) PREVIOUS MINUTES Previous minutes were as presented in the club s 2016 / 2017 annual report. [Moved J Horton, seconded R Parsons; that the previous minutes be accepted. Carried] No matters arising from previous minutes. PRESIDENT S REPORT Alan Rudd stated that his report was as presented in the club s 2016 / 2017 annual report. [Moved A Rudd, seconded R Bird; that the President s Report be accepted. Carried] GENERAL MANAGER S REPORT Caleb Rose stated that his report was as presented in the club s 2016 / 2017 annual report. [Moved G Johnson, seconded D Morton; that the General Manager s Report be accepted. Carried] FINANCE REPORT Robert Magnussen thanked the Board for inviting him to speak at the AGM. Robert stated that the financial report had been prepared in accordance with the Corporations Act and was a general purpose report made under reduced disclosure requirements in accordance with reporting standards. Robert declared NorthCorp s independence as auditors and stated that NorthCorp s opinion (p29) declares the financial statements are a true and fair reflection of the Club s financial position. Robert drew attention to the paragraph on page 29 that outlined material uncertainty and stated this was important for members to be aware of. This paragraph was a reflection of note 1(a) that includes disclosure of uncertainty by the board and the reasons for this, most significantly: The club incurred a loss of $354,934 The club s current liabilities exceed its current assets by over $1m As at 30 th June 2017, the items above cast doubt regarding the club s ability to continue as a going concern, however the note also included outlining strategies in place to mitigate future losses. Robert stated this was where the report became more positive. Of note was: Additional costs associated with redundancies were incurred but were necessary and the restructure had significantly improved the club s financial position 6

7 Significant savings / loss reduction had also been achieved through the outsourcing of the cleaning operation and the catering operation The importance of catering could not be understated Although doubt remained at the current time, Robert stated that there was a reasonable expectation that the club could continue for the next 12 months and that the success of planned and implemented changes would be determined by future financial results. Robert then spoke about the financial report and summarized key components for members, including the following points of note: Bar and gaming sales had increased Revenue from catering had decreased by $120k Green fees had declined $86k, partly impacted by weather Total revenue had decreased by around $100k Costs had increased by $33k, mainly attributable to marketing, insurance and electricity (light and power) The club s largest expense was employee benefits and these had risen from 34% of gross revenue in 2007, to 47% in During this time gross revenue had fallen by $13k The Statement of Financial Position showed the club had retained equity of $2.19m but this had fallen from $3.4m in 2007 as a direct result of ongoing losses over the past 8 years Robert stated that the financial report highlighted that action needed to be taken by the club and that the focus moving forward was to monitor the effects of management changes. Although not included in the financial report, Robert spoke briefly on the 4 months of trading results available from July to October Robert stated these results were unaudited, however on the assumption they were accurate: July had showed a loss of $19,700 but this was expected as the bistro was still trading under the club and elements of the restructure were still being implemented, including redundancies August, September and October had each shown a small profit The year to date position of the club (4 months) was ahead of the previous year by almost $100k A significant turnaround was already visible in these results QUESTIONS IN WRITING Brian Bartholomew (member number 2310) asked the following questions, with responses from Robert Magnussen shown below each question: 1. Page 6 There were large increases in insurance (13%) and light and power (21%), is this likely to be the level of increase in future years? Robert stated that the insurance increase was mainly due to worker s comp which is based on payroll and claims history. It is reasonable to expect this cost to decrease as payroll costs reduce in future. The increase in electricity was across the board and was also being felt in households. 2. Page 6 Other expenses $320,998 This is a large figure and accordingly would it be prudent to include a note in the accounts to provide more detail available to members? Robert stated that accounting standards did not require this, however he highlighted some high cost items including: a. Pro Shop (commissions etc) $73k b. CMS Fees $16k c. Council rates $28k d. Licencing Fees $15k e. Printing costs $15k 7

8 3. Page 9 Receipts from customers declined by $200k. Has this trend been arrested and are we likely to see a higher total receipts figure in 2018 than the $3.8m this year? Robert stated that it was unlikely that total receipts would increase without the bistro, however revenue was less important than profitability and this had been a key reason to outsource catering. 4. Page 9 Receipts from customers is $3,796,387 and page 16 shows total revenue of $3,472,591. Can you explain the difference? Robert stated that there is a difference between revenue (accrual basis) and cash flow (receipts - actual cash). Receipts from customers also includes GST whereas accruals are exclusive of GST. Paul Stewart asked the following question (summarised full question retained along with other 2017 AGM documents), with the response from Alan Rudd shown below: 1. Paul noted the decline in green fee revenue of $86,651. Paul also noted the decision to increase competition fees and asked if the decline indicated the decision had not worked? If so, was the board considering reversing the fee increase? Alan stated the club had considered reducing the competition fee but was not currently in a position to do so. Alan also noted that golf numbers were steadily increasing. Dennis Hughes (Men s Golf Captain) added that January, February, March and May of 2017 were the 4 worst months for comp fee revenue in the club s history and this was reflected in the decline, however these months had significant weather events that were the main contributors to the poor result. Robert thanked the members for their interest and additional questions. Alan stated that as there were no further financial matters to address the meeting would move on and he asked for the financial report to be accepted. [Moved G Fowler, seconded R Knapp; that the Finance Report be accepted. Carried] ELECTION OF OFFICE BEARERS The Club s returning officer Ray Knapp stated that no election had been required this year as 3 candidates had nominated for 3 vacancies. Elected unopposed for 3 year terms were Peter Abell, Geoffrey Fowler and Linda Ison. ORDINARY RESOLUTIONS Alan read out three ordinary resolutions labelled first, second & third (as listed in the meeting agenda). [Moved R Knapp, seconded G Fuller; that all 3 resolutions be approved. Carried] SPECIAL RESOLUTIONS Alan stated that there were no special resolutions to consider. HONORARY SOLICITOR The members approved Hadyn Oriti from Donovan Oates Hannaford Lawyers as honorary solicitor. AUDITOR The members approved NorthCorp Accountants as company auditors. GENERAL BUSINESS Alan invited comments and recommendations from the floor. Comments were: Roger O Neill asked if it would be prudent to have an account to cover future redundancy costs given the club had spent $81k on redundancies in the 2016 / 2017 financial year? Robert stated that under current accounting standards it was not possible to do this. 8

9 Jim Pike asked if any research had been done to attract young people to the club? Alan stated that it had and that one initiative was the half price golf membership for people aged years. This had seen membership in this age group rise from 4 members to 30 members. Alan stated that management was mindful of changing demographics and that strategic decisions were targeted at attracting new markets including young people and families. Ian Gabrielle stated that there had been a lot of talk about golfers at the AGM and noted that bowlers had also done a lot to contribute to the club, including attracting young people through school bowls programs and through their own contributions by staying for meals and increasing bowls activities. Alan acknowledged this input, congratulated the bowls clubs and stated that all sub clubs were to be commended on their efforts to support Wauchope Country Club. Marie Winter asked who was responsible for preparing the venue for bowls functions and other events? Alan stated that this was a management issue and that regular sub club meetings had commenced that should help to alleviate future problems of this nature. Alan stated he was aware that some people did not know when the AGM was on, but that members had been notified in accordance with requirements. Alan also acknowledged that there had been issues with the club s website that had disrupted access to the annual report, however the website was currently being addressed and members could access a printed copy of the report from the office at any time by request. In closing, Alan stated that some hard decisions had been made by the board and so far they seemed to be working. Alan stated that members were happy to tell him the bad stuff, however in his view he felt things were going ok and this was highlighted by the dramatic improvement in trading results over the past 3 months. Alan thanked Robert Magnussen for his attendance and detailed analysis of the club s financial report. He then thanked Wayne and Geoff for cooking the BBQ and the directors and members for their attendance. Alan closed the meeting and invited members to join the board for drinks and a BBQ. MEETING CLOSED: 10:55am 9

10 President s Report 2018 We have had a significant year in a number of ways. We have improved our front of house delivery of service to members at the bar, at the office and also through the outsourcing of the bistro to Steve and Celia. Our most significant outcome has been the improvement from a $354,934 loss in 2016/2017, to a $53,788 loss this year. The bulk of this year s loss is attributed to the running of the bistro in July and August last year. As was stated at the last AGM report we instituted a restructure of the club last year. We are monitoring our situation very carefully and to this point are generally satisfied with the result, although, adjustments are still being made as required. There is little doubt that the decision to outsource the bistro has had an impact on our result. Celia and Steven Totton have settled in well and we look forward to a long and satisfactory relationship with them. Steve and Celia have indicated they are also satisfied with our current arrangement. By perusing the annual report members can see the significant savings brought about by the bistro, the outsourcing of cleaning, and restructuring within the office and front of house. More efficient stock control and rostering of casual staff has added to our result. Richard Moore is our superintendent and his unique style is obvious on the golf course. He has made a number of improvements and will continue to do this until he is satisfied with the outcome. Golfers are very satisfied with his efforts and this is also becoming obvious in the bowling greens. Richard and his team are to be congratulated on their effort. Mr George Coull is now the operations manager of the club and he oversees all the bar staff. He is doing an outstanding job and is also to be congratulated. The office staff have been reduced in number but continue to excel. Caleb Rose has my total and undying loyalty for his ongoing commitment and dedication to the Wauchope Country Club. The board of directors congratulate our 2018 champions; Men s golf - Chris O Brien Ladies golf - Jane Horne Junior golf - Zac Smolders Men s vets golf - David Robinson Ladies vets golf - Lyn Hobson Men s bowls - Jeff Purdy Women s bowls - Doris McKinnon Mixed bowls - Bill Reid & Ann Steel To all those members who have lost a loved one during the year we offer our deepest sympathy. I offer my personal thank you to the members of the Board of Directors for their ongoing commitment and support throughout the year. We have had a significant year in a number of ways but there is still a lot of work to accomplish. It would be incredibly satisfying to appear before you next year talking about the profit we had made. It is not just a pipe dream but a highly achievable goal. I hope all our members have a safe, healthy and prosperous Yours sincerely Alan Rudd - President 10

11 General Manager s Report 2018 Dear Members, The 2017/2018 financial year has been a significant one for Wauchope Country Club, with a number of changes implemented including most notably the finalisation of our revised staffing structure and the outsourcing of catering and cleaning operations. These changes have had a dramatic and positive effect on our financial result which is a loss of $53,788 compared to a loss of $354,934 last year. While there is still plenty of work to be done, we are now in a position to explore with confidence a range of long term strategies for growth, along with further cost reduction strategies to bring the club back to a profitable and sustainable trading position. In my report last year I highlighted the steady increase in payroll costs as a percentage of total revenue over the past 10 years, as well as the impact these increases have had on the club s profitability. By 2017 this figure had reached 47.5% and payroll costs were a key contributor to last year s financial result. I am pleased to report that in the 2017/2018 financial year we were able to reduce this figure to 36.4%, the lowest it has been since 2008 and again a key contributor to this year s improved result. I wish to congratulate all our staff and particularly our dedicated leadership team for their continued support, positive energy and willingness to embrace change throughout the transition to our new staffing structure. Staff in all areas have done an outstanding job and all have worked tirelessly to deliver consistently excellent service and facilities to members and guests. To each of you I offer my sincere thanks. Particularly pleasing also has been the loyalty, support and enthusiasm from members over the past year. The ability to adapt and make changes is critical in a market that is evolving rapidly and this challenge would be far greater without your support. I would especially like to thank the board for their commitment and support, as well as the many other volunteers who continue to lend our club a hand in so many ways. Volunteers are an invaluable resource and much of the work they do would otherwise need to be paid for by the club. Without this contribution the challenge of attaining ongoing financial sustainability would be considerably more difficult. This year we have welcomed Celia and Steve Totton as our contract caterers and their input has led to a dramatic improvement in food quality and service. Food is an essential element in attracting patronage to the club and I thank them for their effort in achieving this. We have also welcomed George Coull to our leadership team as Operations Manager and his positive impact on staff morale, efficiency and service in a short time is commendable. In May 2018 we took delivery of a number of new machines from Toro to replace old maintenance equipment in line with the club s machinery replacement strategy. These machines were carefully selected for their capacity to maximise efficiency and they have had an immediate impact, with members and visitors frequently commenting on the high quality of Wauchope Country Club s outdoor facilities. Our golf course and bowling greens are our key asset and I congratulate Richard and his team for the excellent standard they maintain. Major projects underway in 2018/2019 include moving forward with plans to improve the club s gaming facilities and reception and bar areas, as well as the submission of a grant application to purchase a 100kw solar system to help reduce our energy costs and environmental footprint. If successful this system will help offset price rises that have seen the club s expenditure on electricity increase by $46,893 last year, by far the largest increase in operating costs for the club. Finally I offer my condolences to all members who have lost loved ones in the past year and, as always, I extend my sincere thanks to all members of Wauchope Country Club for your continued support! Yours Sincerely Caleb Rose - General Manager 11

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