Financial Statements
Information Auditors Findlay & Company Peasiehill Road Arbroath DD11 2NJ Business Address Scotscraig Golf Club Golf Road Tayport Bankers Members of Council Royal Bank of Scotland 113-115 South Street St Andrews KY16 9QB Graeme Smart (Captain) George Anderson (Vice Captain) Sheila Johnston (Ladies Captain) John Rankin (Immediate Past Captain) Colin Ross (Finance Convenor) Colin Lowe (House Convenor) Scott Edwards (Match Convenor) Dennis West (Marketing Convenor) Lindsay Mure (Junior Convenor) Alan Kidd (Member of Council)
Contents Auditors' report 1 Page Trading, profit and loss account 3 Balance sheet 4 Notes to the accounts 5-11
Independent auditors' report to the members of Scotscraig Golf Club We have audited the financial statements on pages 3 to 11, which have been prepared under the historical cost convention and in accordance with the rules and constitution of the Club. This report is made solely to the members of the Club, as a body. Our audit work has been undertaken so that we might state to the members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Club and the Club members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the Council and Auditors The constitution of the Club requires the Members of the Council to prepare financial statements for each financial year in accordance with the rules and constitution of the Club which show the state of affairs of the Club as at the end of the financial year and of the surplus or deficit of the Club for that period. In preparing these financial statements, the Members of the Council are required to:- apply the rules and constitutions of the Club consistently; make judgements and estimates that are reasonable and prudent; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Club will continue in business. The Members of the Council are responsible for keeping proper accounting records, which disclose with reasonable accuracy at any one time the financial position of the Club and to enable them to ensure that the financial statements comply with the rules and constitution of the Club. They are also responsible for safeguarding the assets of the Club and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Club's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Council; and the overall presentation of the financial statements. True and Fair Consideration In forming our opinion, we have considered that there is no statutory requirement for the financial statements to give a true and fair view. Page 1
Opinion In our opinion, the financial statements have been properly prepared in accordance with the rules and constitution of the Club. Lesley Campbell CA Senior Statutory Auditor Chartered Accountants and Statutory Auditors 11 Dudhope Terrace Dundee DD3 6TS Page 2
Trading and Profit and Loss Account Notes 2016 2015 Income Subscriptions 5 312,551 312,920 Temporary members 145,223 142,268 Rental and locker income 4,312 4,500 Commissions receivable from Links with History 2,222 2,320 Sponsorship, fundraising, donations & grants 1,828 4,114 Open tournament 8,025 11,599 Net profit on bar & catering 9 11,081 16,029 Caddy car income 1,247 1,275 Expenses 486,489 495,025 Course 6 245,585 268,460 Clubhouse 7 124,027 82,962 Administration 8 129,560 122,141 VAT 32,720 23,423 (531,892) (496,986) Profit / (Loss) before interest and tax (45,403) (1,961) Interest received 166 521 Bank loan interest paid (458) (22) Ordinary Profit (45,695) (1,462) Corporation tax (1,666) (744) Net Profit / (Loss) (47,361) (2,206) Page 3
Balance Sheet as at 28 February 2016 2016 2015 Notes Fixed Assets Tangible assets 2 649,518 667,584 Current Assets Stock 3 17,937 11,567 Debtors 21,029 16,147 Current account 106,318 103,092 Investment accounts 23,010 24,959 Petty cash 1,107 1,419 169,401 157,184 Current Liabilities Trade creditors 11,874 11,095 Bank loans and overdrafts 5,846 - Other creditors 15,830 13,000 Creditors and accruals 233,790 225,550 267,340 249,645 Net Current Liabilities (97,939) (92,461) Total Assets Less Current Liabilities 551,579 575,123 Bank loan (20,746) - Net Assets 530,833 575,123 Reserves 4 General reserve 374,774 419,373 Revaluation reserve 137,252 137,252 Bi-Centenary fund 18,171 17,073 Junior coaching fund 636 1,425 530,833 575,123 We approve these accounts and confirm that we have made available all relevant records and information for their preparation. Barrie Liddle Managing Secretary Graeme Smart Captain Page 4
Notes to the Accounts 1. Accounting Policies 1.1. Accounting convention The accounts are prepared under the historical cost convention modified when necessary to include the revaluation of certain fixed assets. 1.2. Sales and profits Turnover from trading activities comprises income received on a cash basis, exclusive of value added tax. When deposits are received in advance, any amounts outstanding at the balance sheet date are credited to deferred income. Subscriptions from members are received in advance for the following year. At the balance sheet date, amounts received in respect of the following accounting period are credited to deferred income. 1.3. Tangible fixed assets and depreciation The Club's policy is to provide depreciation at rates which are calculated to write off the cost of acquisition or valuation. The depreciation rate for course equipment and furniture and fittings was changed from 20% reducing balance to 15% reducing balance as the Council felt that this would provide a better estimate of the assets useful economic life. Course - 10% Reducing Balance Course Equipment - 15% Reducing Balance Furniture and fittings - 15% Reducing Balance Caddy car shed - 20% Straight Line Lockers - 5% Straight Line Irrigation System - 4% Straight Line 1.4. Leasing Rentals payable under operating leases are charged against income on a straight line basis over the lease term. 1.5. Stock Stock is valued at the lower of cost and net realisable value. 1.6. Pensions The Club operates a defined contribution scheme and the pension charge represents the amounts payable by the Club to the fund in respect of the year. Page 5
Notes to the Accounts 2. Tangible assets Clubhouse Lockers, & caddy Golf fixtures Course car shed course & fittings equipment Total Cost At 28 February 2015 426,643 408,127 91,896 34,646 961,312 Additions - 4,240 940-5,180 Disposals - - (15,597) - (15,597) At 28 February 2016 426,643 412,367 77,239 34,646 950,895 Depreciation At 28 February 2015 6,643 194,365 65,718 27,002 293,728 On disposals - - (11,890) - (11,890) Charge for the year - 14,427 3,965 1,147 19,539 At 28 February 2016 6,643 208,792 57,793 28,149 301,377 Net book Values At 28 February 2016 420,000 203,575 19,446 6,497 649,518 At 28 February 2015 420,000 213,762 26,178 7,644 667,584 No depreciation is charged on the value of the land which is included in "Course". Additionally, no depreciation is charged on the value of the clubhouse as, in the opinion of the Council, its long useful economic life (in excess of fifty years) and high residual value means that any depreciation charge and resultant accumulated depreciation would be immaterial. The Council believes that no impairment of the carrying value has occurred during the year. The clubhouse was valued by Hardies LLP at 420,000 on 22 May 2008. 3. Stocks 2016 2015 Bar 3,166 4,155 Catering 2,658 2,390 Course 12,113 5,022 17,937 11,567 Page 6
Notes to the Accounts 4. Reserves Bi- Junior General Revaluation Centenary Coaching Reserve Reserve Fund Fund Total At 1 March 2015 419,373 137,252 17,073 1,425 575,123 Entry fees 2,762 - - - 2,762 Surplus / (deficit) for year (39,801) - 1,098 (789) (39,492) 382,334 137,252 18,171 636 538,393 5. Subscriptions Income 2016 2015 Adult members 309,330 309,675 Junior members 3,221 3,245 312,551 312,920 6. Course expenditure 2016 2015 Pension 1,287 1,286 Wages 128,475 154,569 Equipment hire and lease 53,808 40,408 Repairs & maintenance 25,745 26,725 Seeds & fertilisers 4,455 6,228 Materials & supplies 3,514 6,502 Oil & petrol 5,370 8,907 Tools & equipment 383 1,166 Heat & light 2,453 2,466 Workwear/safety 2,509 2,259 Sundries 968 550 Staff training 1,045 1,195 Depreciation 15,573 16,199 245,585 268,460 Page 7
Notes to the Accounts 7. Clubhouse Expenditure 2016 2015 Clubhouse wages 8,838 7,622 Clubhouse pension 2,525 - Heat & light 17,820 17,013 Rates 7,185 11,418 Insurance 7,621 7,606 General house charges 7,043 6,868 Repairs 15,755 14,335 Roof and Car Park repairs 37,388 - Sky TV 4,728 4,406 Cleaning 2,921 2,752 Health & safety 2,653 1,694 Lease of furniture 220 220 Rental of equipment 4,425 2,904 Stocktake 520 520 Alarm system 420 680 Depreciation 3,965 4,924 124,027 82,962 Page 8
Notes to the Accounts 8. Administration expenditure 2016 2015 Management pension 2,707 3,845 Pension life cover 3,388 - Management wages 57,465 56,230 Professional 29,799 26,790 Trophies, engraving & prizes 8,138 9,463 Advertising 4,757 2,755 Bank charges 3,875 3,510 Post, printing & stationery 3,536 4,540 Computer expenses 4,230 3,877 Telephone 3,335 3,371 Audit fee 4,400 4,157 Licences 884 1,212 Legal & professional fees 2,168 1,463 Profit on disposal of assets (126) - Sundries 720 795 Travel & subsistence 284 133 129,560 122,141 Page 9
Notes to the Accounts 9. Bar trading account 2016 2015 Sales 73,766 84,345 Cost of sales Opening stock 4,155 4,285 Purchases 30,751 36,289 Closing stock (3,166) (4,155) 31,740 36,419 Profit 42,026 47,926 Catering trading account Sales 120,906 114,716 Cost of sales Opening stock 2,390 2,980 Purchases 41,628 41,693 Closing stock (2,658) (2,390) 41,360 42,283 Profit 79,546 72,433 Summary Profit on Bar 42,026 47,926 Profit on Catering 79,546 72,433 121,572 120,359 Less: wages (112,413) (106,065) Loyalty card scheme 1,922 1,735 Combined Profit/(Loss) 11,081 16,029 Page 10
Notes to the Accounts 10. Reconciliation of Membership 2016 2015 Honorary/Life 2 2 Playing 430 431 Non-Playing 19 20 Distant and Country 44 34 Friends & Family 85 77 Overseas 10 8 Youth 34 35 5-Day and 5 Day Plus 83 95 707 702 Junior Members Boys 36 28 Girls 4 2 40 30 11. Pension commitments The Club operates a defined contribution scheme. The assets of the scheme are held separately from those of the Club in an independent administered fund. The pension cost charge represents contributions payable by the Club to the fund and amounted to 9,907 (2015-5,131). No contributions were outstanding at the balance sheet date. 12. Financial commitments At the year end the club had annual commitments under non-cancellable operating leases as follows: 2016 2015 Within one year 20,043 10,188 Between one and five years 17,425 14,112 37,468 24,300 Page 11