Kooyonga Golf Club Annual Report 2017/18

Annual Report 2017 - 2018

Vision To be a vibrant and progressive club, recognised for our strong sense of values and unique Kooyonga experience MissionTo provide members and guests an outstanding golfing experience and industry leading facilities and services Culture & Values Respect Excellence Inclusive Friendly

Contents2 4 5Women’s Australian Open Office Bearers and Committee Captain’s Report10 12 14Course House, Events & Heritage Finance17 21 26Membership Match Competition Results28 30 34Financial Statements Statement of Income Statement of Financial Position35 36 37Statement of Changes in Equity Statement of Cash Flows Notes of the Accounts47 48 50Statement by the Committee Audit Report Five Year Summary51Kooyonga Foundation Reports

“The presentation of the course for ourchampionship was simply brilliant. The world’sbest players, international guests, coaches andmanagers as well as national and internationalmedia have offered nothing but praise for the quality of your course, both in condition and indeed its test” Trevor Herden, Director - Championships Golf Australia Women’s Australian Open 2018

33,277 attendance UP 4% ON LAST YEAR$340Kin hospitalityincome(close to 25% of annual food & beverage turnover) 26, 500 items sold through external catering outletsIN EXCESS OF 4,300 COFFEES, APPROX. 100 PER HOUR6,600+ STAFF MAN HOURS DURING OPEN WEEK 4 X AVERAGE WEEKLY LABOUR HOURS 345KM Ground staff walked whilst mowing greens 16 hours Live international broadcast67% 6X greatergrowth social mediain website engagementtraffic during the week

Annual Report of the CommitteeOffice Bearers and Committee Mr John Blunden, President Mr John Garrett, Vice-President Dr Ken Russell, CaptainNot required to attend Committee meetings Not required to attend Committee meetings Attended 12 out of 13 GC meetings Sub Committees Sub Committees Sub Committees LMN (Chair) LMN GC (Chair), LMN, SP, G&R (Chair)Mr Terry Anderson, Vice-Captain Mrs Debbie Alexander, Committee Mr Sam Atkins, Committee Attended 8 out of 9 GC meetings Attended 11 out of 13 GC meetings Attended 12 out of 13 GC meetings Sub Committees GC (Deputy), FAM, C&W (Chair), SP Sub Committees Sub Committees FAM, HE&H C&W, HE&H (Chair) Ms Helen Egar, Committee Mr Crawford Giles, Committee Mr Angas Hains, CommitteeAttended 13 out of 13 GC meetings Attended 11 out of 13 GC meetings Attended 10 out of 13 GC meetings Sub Committees Sub Committees Sub Committees M, HE&H FAM (Chair), HE&H. G&R C&W, MMr Gary O’Loughlin, Committee Mr Tim Sennett, Committee Mr Tony TimminsAttended 11 out of 13 GC meetings Attended 12 out of 13 GC meetings Attended 13 out of 13 GC meetings Sub Committees Sub Committees Sub Committees C&W, M FAM, M (Chair), SP FAM, C&W, Golf SA DelegateRetiring Captain, Dr Grant Raymond attended 4 out of 4 meetings.Sub Committees: GC - General Committee. FAM - Finance, Audit & Membership. C&W - Course & Water. M - Match. HE&H - House, Events & Heritage.SP - Strategic Planning. G&R - Governance & Risk. LMN - Life Membership Nominations.Annual Report 2017/18 Page 4

Annual Report of the Committee Captain’s ReportIam pleased to provide a brief overview of the events of This unfortunately means that the waiting time to become a our last financial year. Within the Annual Report you will Category One member has been elongated. Many of the currentfind further details from each of the Committee Chairs Category One members, and I am one, will recall the waiting timeabout the various aspects of each of Kooyonga Golf Club for the upgrade being 8 to 10 years and fortunately that will notSub Committees. be the case in current times. The two tee starts on SaturdaysOne only realises the intensity of involvement that the Captain have provided us with more enjoyable and concise rounds at thehas by living the role. I would sincerely like to thank all members times of most demand.and my wife, Margaret for their wholehearted support, help and The Women’s Australian Open was indeed the highlight of theencouragement as I have undertaken the role. I had big shoes year. It showcased our course to the rest of Australia and indeedto fill as outgoing Captain Grant Raymond not only fulfilled the the world. Kooyonga shone on the international stage and wasrole with dedication but also was instrumental in pushing us to richly heralded from all quarters for the standard and layout ofdevelop a blueprint for the future. Within the Kooyonga Strategic the course. Another accolade from Golf Australia to the Club wasPlan we have concentrated on two major areas of concern, in regard to the wonderful volunteers who were instrumental inCourse and Landscape Enhancement Plan (LEP) and Clubhouse the staging of this successful event. Many Kooyonga and otherMasterplan. golf club members contributed long hours in marshalling andThe LEP is all but complete and Kooyonga now boasts a ‘modern various other roles during the Open. John Hopkins AO from Golfday’ feel to golf as many guests and visitors tell us. I trust you Australia was exuberant in his praise for the volunteer team atwill appreciate the Clubhouse Masterplan when I present it at this year’s Open. Special thanks must go to Zoee Dolling and herthe AGM. It is one of our strategic plan objectives to enhance leadership team for coordinating approximately 500 volunteers.friendlier and more enjoyable usage of our facilities both on and Success in February did come at a cost to our bottom financialoff the golf course. line when the previous three instalments of $25k per year, toOptimum membership numbers and membership subscriptions attain the Open, were entered into the accounts. However Iremain a constant challenge. Your Committee has heard the have said that the forward thinking impact upon golf in Southmember’s need for easier access to the course and has reduced Australia by ours, The Grange and Royal Adelaide’s contributionCategory 1 membership numbers in line with this philosophy. should not be understated. Having this prestigious event in our State has certainly raised the profile of golf. Annual Report 2017/18 Page 5

Annual Report of the CommitteeCaptain’s Report (cont)Finance & Membership Golf Shop and ServicesThe Kooyonga membership report along with financial data will With the commissioning of the Golf Academy we can nowbe more eloquently addressed in the Finance and Membership offer a complete golfing service to all of our members whoChair’s report later in the annual report. I thank Crawford wish to improve their golf. We are actively recruiting anotherGiles for the experience, hard work and professionalism he professional coach to replace Jordan Harkin who has movedbrings to this role. Unfortunately we could not achieve our on to Glenelg as Head Professional. Our coaches John Corbett,2017/18 budget this year and Crawford will address the Susie Mathews and Duard Nel are very busy and new coachesreasons why later. I reassure all members that the utmost due soon to be introduced will be a great asset and enable usdiligence is taken by Committee in budgeting and attention to to fully utilise this teaching facility. I am sure you will agreemanagement efficiency. That being said, attention to greater with me, as many Kooyonga members can attest to, that ourservice and product around the club and on the course is coaching team is certainly at the forefront of modern coachingsomething we have identified as a key objective as we strive to techniques.ensure Kooyonga is in the upper echelon of golfing experiences Sales in the golf shop are continuing to build since the Clubin Australia. To this end it has unfortunately been necessary to took over its management some years ago and you can expectincrease membership fees this year. This decision is one made a greater emphasis to be put on the retail side of the operationnot lightly but reflective of an attempt to produce a positive over the next year. We are learning more about the clubs,budget. Many of you have attested to this desire for excellence apparel and golfing accessory needs of our members and weat Kooyonga and as a Committee I trust we are carrying are trying to ensure our stock reflects your needs. We aim toout your wishes. It is also important that measured by any be competitive in what is a very competitive retail golfing worldparameter Kooyonga is as efficient in its costings as any other and with this in mind trust that we are the first choice for yourtier one club in Adelaide and definitely more so than interstate golfing purchases.reciprocals. Completed Projects Course & LEP Development Hosting of Decision to works in line of course Women’s reduce the with 5 year plan; maintenance Australian Open number of 1st hole, 7th tee, standards and Category One 10th tee guidelines Upgrade of members by 40 Club’s IT System2017 2018Developed speed Enhanced member Recognition of Review of Clubof play strategic hospitality former Governanceframework services and Club Presidents structure – upgrade of bar on fleet of proposed furniture motorised carts changes to Rules Continue work on masterplan for Clubhouse

Annual Report of the Committee Captain’s Report (cont)Your Committee is investigating floodlights for the practice his experience in the wine and hospitality industry has been afairway to assist members who can’t get to practice during great help.daylight hours. We will ensure this is done in a tasteful and Golf Courseecologically friendly way if we can obtain planning approval It was a very successful year albeit a daunting one in whichfrom local council. we saw the loss of long time Course Superintendent StevenSusie Mathews has been a great strength in the area of Newell and the integration of his experienced replacementmembership and golf operations. She has the ability to turn Richard James. This was at a time when I felt the Club wouldher hand to all tasks and management. Thank you Susie on be vulnerable with the preparation for the 2018 Women’sbehalf of all members for your efforts in the previous year and Australian Open. We congratulate Richard on his efforts as hewell done to you and your team for a wide and varied range hit the ground running when he took over and has improvedof services. Finally I cannot thank John Corbett enough for the quality of our playing surfaces, an improvement that manydeveloping Kooyonga’s pathway to a successful golf coaching thought unattainable. You will all notice the upgraded courseexperience for us all. furniture, tee blocks, ball washers and rubbish bins replacingClubhouse Services and Product the old. The new look adds a classical look to our greatUnder the guidance of Anna Fontaine and Head Chef Peter course. I thank sincerely Terry Anderson for his managementMilosevic we are building our reputation as a quality destination of the Course Committee and his dedication to develop afor food and beverage. To this end quality menus, table service Course Quality and Maintenance Policy along with proceduraland a greater range of bar snacks are now offered along with documentation that will stand the test of time and one thatan extensive wine list and beer offerings. We are in the process was developed with the wholehearted help of our Courseof finalising a Clubhouse Masterplan as one of the strategic Superintendent.objectives outlined last year. In doing so, we will attempt to I would also like to acknowledge the help and professionalismaddress a number of deficiencies in the current design and that Course architect Neil Crafter has provided both in directionto allow us to provide a better service and amenities to our and detail to any course improvements.members. Sam Atkins heads up the House Sub Committee andand Future PlansLaunch of ‘Tee Further develop Prepare initial Promote Completeoff with Friends’ masterplan design and member bequest comprehensivetemporary to upgrade costing for new programme in member surveymembership maintenance irrigation system conjunction to gauge memberpackage for facility and envisaged to be with Kooyonga satisfactionwomen enhance staff installed by 2025 Foundation amenities 2019Detailed design Course Further develop Launch of new Mid-term reviewand tender enhancements and market Club website and of 5 yearfor stage 1 of in line with temporary phone app strategic plan;clubhouse 5 year plan - pathway 2016-2020works including 15th hole membershiprelocation of options forwomen’s locker women &room families

Annual Report of the CommitteeCaptain’s Report (cont)Match Committee Members are playing many more rounds of play than in years goneA Speed of Play Document has now been established and with by and this means that the club can’t support as many playingthe reduction on tee time pressure by fewer Category 1 members members whilst allowing the same freedom of access to theand two tee starts we feel that we are addressing the issue of long course. We have addressed this by reducing the quota of Categorygolf rounds. Golf Shop staff have been monitoring and marshalling 1 members. Rest assured, membership numbers will constantly bethe field on many days and I trust that members will respect their monitored for the safeguard and integrity of your membership.requests if approached at any time. The Strategic Plan states that it is our aim “To be a vibrant andPennant teams have developed under the tutelage of manager progressive club, recognised for our strong sense of values andTim Sennett and his team of volunteers. I thank Tim enormously unique Kooyonga experience”. Our Mission is “To provide membersfor the time he has put in not only with the Pennant team but his and guests an outstanding golfing experience and industry-management of the Match Committee. It is imperative that teams leading facilities and services”. Over the last few years it has beenrepresent our Club with the spirit, style and integrity that befits our aim to “walk the walk and not just talk the talk”. We hope thatour long and honorable tradition. I am proud to report the great you agree as we have provided a clubhouse environment whichethos and devotion to Kooyonga values that I always see in our now boasts remarkable hospitality service and standards of foodrepresentative teams. and drinks, a golf course with an LEP direction copied by andInterstate visits and subsequent hospitality provide important aligned to some of the best courses in the Victorian sand belt, aopportunities for maintaining optimal relationships with our state of the art Teaching Academy with enormously experiencedreciprocal clubs. I thank all members who have participated in the and caring teaching professionals, a pro shop that constantlymany exchanges this year. receives accolades from visitors as to its friendliness and levelManagement of service, and lastly a governance that is fair and equal andAccolades must go to Brett Lewis, General Manager and his team supported by amazing office and professional staff.for his wise stewardship and management of the Club. Amanda It is our aim to go one step further and at the Annual GeneralSewell has been a great back up to Brett and her coordination of Meeting I will be outlining a Clubhouse Masterplan to bring ourthe e-news and many reports is greatly appreciated. Dustin Fromm facilities up to the same degree that befits the service enjoyed. Weand all the other office staff have contributed to the very efficient aim to provide a better women’s locker room, redevelop the officemanagement at Kooyonga. layout to be more friendly and efficient, provide two small businessAs Captain I have been fortunate to be supported by dedicated breakout rooms and a library and finally provide a separateand sincerely helpful General Committee members who have made entrance and entertainment area for members and non membersmy job all the easier to perform. I will be disappointed to lose the who are attending functions and seminars at Kooyonga.wise counsel of Tony Timmins at this year’s AGM as he has finishes The future benefits of improving the facilities of the Golf Clubhis committee service after almost eight years. have been well supported by the Kooyonga Foundation. TheirFrom time to time extra support on the Committee is needed from contribution to projects and junior development throughmembers with special skills in one area or another and to that end, successful fundraising from their golf days, auctions, membersat the AGM, your Committee is asking you to support our amended donations and bequests to the Foundation have accelerated ourchange to the constitution that will allow committee to appoint ability to improve Kooyonga’s infrastructure as can be highlightedone of the four Committee members selected each year. The by the enormously successful and heralded Kooyonga Foundationexplanation of how that can occur will be in the voting documents Teaching Academy. Walford Thyer and his team of dedicatedsent out to you for consideration. To summarise the end result is committee members and volunteers have been exemplary inthat over time two Committee members will have been appointed support for the Club. On behalf of all members we thank you forby Committee and the six other elected Committee members, the your efforts.Captain and Vice Captain will make up the 10 person Committee. I trust you find the challenges of the future as exciting as I do andThis will reflect a member’s selection of Committee members at can see the need for us to remain at the forefront of the golfing80% for any one time. and hospitality industry to ensure Kooyonga’s status and long-This year members have the opportunity to utilise on-line voting term success and survival.for the first time as was the approved change to the constitution I love being a member of our great golf club.at last years AGM. We trust this option will make voting easier and Ken Russellensure adequate access to the election process for all members. Captain, Kooyonga Golf ClubThe FutureKooyonga, along with all other golf clubs, is in unchartered wateras younger people are more time poor and older members playmore than their parents. Golf clubs can be seen as a men’s cluband possibly unfriendly to some groups. This is a perception thatat Kooyonga we want to dispel especially if our club is to flourishinto the future. It is a key objective in our Strategic Plan.Annual Report 2017/18 Page 8

Members’ DinnerMelbourne Cup Member & Staff Twilight Family Fun Day

Annual Report of the Committee Course It has been a challenging 12 months The Open was a huge success and In line with our rolling five year plan, we from a course point of view with the Richard and his staff presented the will continue to replace one green per resignation of long-standing Course course in mint condition, drawing year. We decided to change the order Superintendent, Steve Newell and praise from players, officials and slightly and will now carry out a much the hosting of the 2018 Women’s visitors. It was a huge task, particularly need reconstruction of the 15th green Australian Open. given the hot and dry conditions in the to make it look and play more like the Following an exhaustive search for a lead up. The Chairman of Golf Australia, old 15th it replaced. replacement for Steve, we were very Mr John Hopkins OAM, publicly In consultation with the Course fortunate to be able to appoint Richard commented that the players would not Committee, Richard has introduced James as his replacement. We were play on better surfaces anywhere in some subtle changes to the course also fortunate that Adam Fry stayed on the world. preparation with slightly more grass as Assistant. It was a busy year with the 1st green coverage on the greens and the raising undergoing reconstruction and a new of the mowing heights of the bentgrass fairway bunker placed on the left hand collars around the greens. approach to the green. A new sand We believe the increased density of dune was constructed from waste from the greens has improved the health of the green to screen the rubble path the greens and allowed them to better that leads to the 2nd tee. cope with golf traffic and hot weather. The 7th tee was enlarged, levelled With the mowing height of the collars and replanted, and as part of the being increased to the height of the preparations for the Open, a new fairways, players now have to make a forward tee was constructed on the choice between using a “texas wedge” 10th. or playing a chip shot. It also provides a more visually appealing contrast to the green. Stimpmeter Readings on our Greens - August 2017 to May 2018 14.0 Masters Event 13.0 Women's Open Monthly Medal Rounds 12.0Reading - Feet 11.0 10.0 9.0 5 day ave. temp 35 5 day ave. temp 32.1 Fertiliser Application Fertiliser Application Fertiliser Application 8.0 Fertiliser Application 5 day ave. temp 38.4 Annual Report 2017/18 Page 10

Annual Report of the Committee CourseWork continued on the remaining parts of the Water Use v RainfallLandscape Enhancement Plan with selective pruning oflower branches (eg the Melaleucas along the left side 300.00 700of the 2nd fairway and the swamp paperbarks alongthe burn on the 9th). Following the annual audit by our Water Use (mL)250.00 600Aborist, some trees were pruned. Rainfall (mm)200.00500Following discussions at Committee, new course 150.00 400furniture was ordered and most of this is now in place. 100.00 300All tee markers, benches, rubbish and sand bins and ball 200washers will have a consistent look and the appearance 50.00 100of the merbau timber gives a much “classier” feel to thecourse. 0.00 0The major upgrade to the fleet of maintenance 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018equipment during the year saw 4 new pedestriangreens mowers purchased, upgrading our existing Water Use Rainfallequipment allowing us the opportunity to continueto provide quality putting surfaces through the use of 330mmmodern and technologically advanced equipment. A setof verti mowing units that can be fitted to our fairway 2017/18mowing fleet was purchased and used throughout thesummer months to refine the fairway surfaces. With 624mmno scarifying carried out in 2017 due to the hosting of 2016/17the Women’s Australian Open in February 2018, thisassisted to keep thatch level in check. The units will REDUCED RAINFALL RESULTED IN 273ML OF IRRIGATIONbe a valuable addition in coming years when used in WATER BEING USED IN 2017/18 IN COMPARISONconjunction with major renovation practices. TO 193ML LAST YEARWe have started preliminary planning for the eventualreplacement of our irrigation infrastructure. While the Kooyonga’s course ratingscurrent infrastructure is likely to last for a further 5 to10 years, it is important to start making plans for its 25increased one spot toreplacement. COURSE RATINS AS PER THEWe now have in place a Course Quality and 2018 GOLF DIGEST AND GOLFMaintenance Policy and I would like to thank Richard AUSTRALIA MAGAZINESfor his considerable input to this document which laysdown the standards to be adhered to. $34.5KI would like to record my appreciation of the workcarried out by Richard, Adam and their staff as well as Course maintenancethe support and input from members of the Course Sub cost per hectareCommittee.Terry Anderson 20% LOWER THAN SOME OF OUR KEYChair - Course & Water Infrastructure Committee RECIPROCAL CLUBS Annual Report 2017/18 Page 11

Annual Report of the CommitteeHouse, Events & HeritageIam pleased to present a report I congratulate the entire hospitality Average food & beverage on the clubhouse operations and team for the improvements made with spend per round of golfclub events over the last 12 months our service and food offerings whichas Chair of the House, Events and really adds value to our membership $20.90Heritage Committee. and allows members to proudly bringI have been extremely impressed with guests to the Club. The quality of food UP 9% ON LAST YEARthe way our Clubhouse Operations and engaging hospitality staff haveManager, Anna Fontaine and her team contributed enormously to our member Functionof first class staff have managed the experience and this has reflected in revenueday to day hospitality operations as the increased use of our bar and dining makes upwell a number of successful member facilities by members over the last 12functions. The front of house service months. 41% ofhas been complimented by the growing We have continued to provide total F&Breputation of the food quality at expanded hospitality offerings over incomeKooyonga thanks to Head Chef, Peter the last year, including daily breakfastMilosovic and his valuable kitchen team. service, after golf snacks, manning of 10,548Undoubtedly, the highlight of the the hut, full table service and extendedyear for our hospitality team was their operating hours throughout the week. Guests attended 197 functionsoutstanding efforts to provide all food All of these services will continue toand beverage requirement for the be offered to members, however they 12% REDUCTIONWomen’s Australian Open event at do come at a cost to the Club which ON LAST YEARKooyonga. This was a huge undertaking needs to be sensibly managed. We havenot taken on by the two other Clubs recently adjusted the opening hours for $82Average spend perin Adelaide, and our team went a breakfast and now open at 9am insteadstep further by offering the members of 8am unless we have a pre-arranged guest at functionsmarquee as a hospitality experience booking.for our members and guests. What Members using the bar facilities over COMPARED TOan experience it was, with consistent recent months would have noticed $69 LAST YEARfeedback that the marquee and the the refurbished members loungelevel of service and hospitality provided furniture, including reupholstered $335khad exceeded expectations by a long chairs in a black leather and new tableway. Over the four days of the event our tops. Committee spent considerable Function Profitfood and beverage turnover reached time investigating furniture options for$340K, which is close to 25% of our the Members’ Bar in consultation with (including corporateannual hospitality turnover for the interior designers at Walter Brooke. We green fees)Club, emphasising the scale of the concluded that the current furniture 35% INCREASE ON LAST YEARundertaking. All members should be has served us extremely well and isextremely proud of what our hospitality high quality in comparison to muchstaff were able to achieve during the of the commercial furniture on theevent. market today, and just needed to be brought back to life with refurbishment. On behalf of Committee, a big thankyou to Club member Quentin Brown for coordinating the furniture refurbishment and spending many hundreds of hours on the project.Annual Report 2017/18 Page 12

Annual Report of the Committee House, Events & HeritageA major undertaking in 2017 was the upgrade of the IT system feedback before a member information session is held in mid-which included the bar terminals and back of house inventory August to answer any member queries or concerns.and function management system. We have appreciated A key project for the House, Events and Heritage Committeemember patience and understanding while we have fine- in the coming year will be to develop a plan for our Centenarytuned the system to suit the way we operate at Kooyonga and celebrations in 2023. This is a significant milestone in the Clubsalso while staff have become more familiar with the new till history that will require a separate organising Committee in duelayout and functionality. There are still a few modules of the course. Any members interested in being involved in the lead upnew system that will be rolled out in the year ahead, including to our Centenary are encouraged to contact the Club.a dining module, grab & go module and events module that We thank members who attended our regular social eventswill allow members to order food and beverage items or book during the year, including the Members’ Dinner, Melbournea table for lunch from a new mobile phone app that will be Cup Day, The Family Fun Day, Mother’s Day, Father’s Day andlaunched with greater functionality. Christmas Twilight Dinner to mention a few. Our regular eventsCommittee has continued to work on a clubhouse masterplan are a great way to build camaraderie and spirit within the Clubwith architects Walter Brooke over the last 12 months, a process and we encourage new members to get involved and get tothat has taken considerable time to complete. Committee has know other members in a social environment. A full programconsidered a whole range of potential services and facilities of social events is included in the handbook for memberthat could be developed for the benefit of members over the information. One new event will planned for October willnext 20 years in line with the strategic plan. include Live Music and Tapas on the balcony, so we encourageCommittee are confident the membership will support the members to support this new initiative and invite family andmaster plan and proposed building works for 2019/20 which friends to attend.include relocation of the women’s locker room to the southern In closing, I wish to express my sincere thanks and appreciationside of the building with a new buggy storage area underneath, to my fellow Committee members for their contributions andrefit of the existing locker room area and amenities to include efforts over the last year as we have continued to work onfunctional floor space and a new men’s toilet and demolition of ways to enhance the membership experience at Kooyonga. Ithe tired and dysfunctional flat in the south eastern corner of encourage members to utilise the high-quality hospitalitythe clubhouse to be replaced with member facilities and a new services on offer at the Club. Please don’t forget to consider themembers entrance with upgraded administration area. Club when organising your next private or business function,Committee will present an overview of the master plan to we have wonderful facilities ideal for day time seminars andmembers at the Annual General Meeting together with an conferences as well as a variety of family and corporateoutline of building works planned for completion in 2019/20. celebrations.The plans will be displayed on the Club website and notice Sam Atkinsboards for a period of two months for member review and Chair - House, Events & Heritage CommitteeMasters’ Breakfast & Golf Event Members’ Dinner

Annual Report of the CommitteeFinance On a cash basis, we achieved a cash There were several varying income and operating surplus of $879K for the expense items compared to last year, year ended 31 March 2018 prior to summarised as follows: depreciation and the net cost of the • Profitability from house operations Women’s Australian Open. The operating shortfall of $112K slightly improved on last year’s result compared to last year was primarily due by $3K thanks to growth in the net to the Committee decision to reduce profit from external functions. The Category 1 membership numbers to additional hospitality income from provide greater access to the course as functions was offset by the higher well as increased depreciation expenses: wage cost to provide the additional 2016/17 Operating Result $127,201 services in the Members’ Bar including daily breakfast service, after golfThe operating result for the Add: Increase in $103,660 snacks, table service and manning of 2017/18 financial year was an subscription fees (4%) $(67,420) the halfway hut on Wednesdays andannual surplus of $15K, a result Less: Subscription fees Saturdays.well below the budget and last year. foregone with Cat 1 $(72,325) • Profitability from the golf shop retailIn addition, the Club incurred a reduction operations remained on par with lastcost of $117K to host the Women’s Less: Entrance fees $(34,228) year. Retail income pleasingly grewAustralian Open. This report and foregone as a result of $(41,576) by $55K or 10% compared to lastthe Financial Statements included Cat 1 reduction year, corporate golf grew by $52Kwithin this annual report explain the Less: Increased depreciation whilst hosting fewer events, howeverreasons for the lower than expected Less: Other this was offset by a $30K reductionfinancial result and provides further in green fee income primarily due toexplanation of the costs associated 2017/18 Operating Result $15,312 course access restrictions aroundwith our hosting of the Women’s the Women’s Australian Open as wellAustralian Open. as slight wage increases to provide the level of service required in the golf shop, golf academy and golf operations as a whole.Comparison of Financial Results - Year on YearAnnual Report 2017/18 Page 14

Annual Report of the Committee Finance• Course operating expenses grew by $20K over last year 5 Year Change in Operating Result due to a $17K increase in depreciation and $32K increase in electricity costs to run our irrigation system in the summer in the lead up to the Women’s Australian Open. These additional course costs were offset by other cost savings including a $17K reduction in vegetation and tree maintenance over the last year.• House operating expenses grew by $23.5K compared to last year of which $15K was depreciation and a $9.5K increase in electricity costs following a significant rise in our usage rates.• Administration expenses increased by $50K compared to last year primarily due to the higher support fees for the new IT system, significant increases in rates and taxes, and modest wage growth including payroll tax for the entire club.The financial statements include an expense of $117K to host encourage all members to take advantage of this wonderfulthe Women’s Australian Open in 2018. This expense brings facility. The Academy has been used as a case study by manyto account three annual instalments of $25K paid to Golf of our reciprocal clubs who comment is the best in the CountryAustralia as our Club’s contribution towards bringing the event and are now replicating it.to Adelaide, a sum also contributed by Grange, Royal Adelaide We continue to rely heavily on member subscription fees toand Golf SA. The remaining $42K costs to host the event were provide the necessary income to offset increases in annualcourse operating and wage costs to prepare the course as operating expenses. Overall, our income will grow by 5% inwell as hire costs for the Club marquee and other external 2018/19 and we have restricted expense increases to just 2%hospitality outlets run by the Club. to help reduce the overall operating loss that we have struggledYour Committee is committed to the continued hosting of the to eliminate for many years.Women’s Australian Open in line with the objects of the Club to Important to note is that our key operating expenses havefoster the game of golf and to maintain a championship course. been tightly managed over recent years with total overhead2018/19 Budget expenses for admin, course and clubhouse increasing by justThe budget for 2018/19 results in a net operating loss of 6% in total over the last 5 years. Depreciation is the major$57.5K prior to new member entrance fees, an increase of expense that has increased by close to $200K over the same$102K over the actual deficit of $159.5K in 2017/18. It is period.expected that the total surplus of the year will be $190.5K after All department heads will continue to investigate opportunitiesaccounting for new member entrance fees. On a cash basis, to control operating costs with close scrutiny through the yearwe expect to achieve a cash operating surplus of $1.083 Million ahead, however these considerations need to be carefullyprior to capital expenditure of $680K planned for the 2018/19 managed against our Club mission and values.year. Your Committee is fully aware and cognisant of the impact theThe budget has been developed with a view of continuing current low interest rate environment has on our membershipto provide outstanding facilities and services in line with our demographic and is committed to cost control as can beagreed strategic direction that seeks to: “Maintain a premier evidenced by the only very small increase in running costs ofgolf experience whilst expanding member facilities and the Club over the past 5 years. This commitment is ongoingservices to better serve the needs of our current and future and includes such things as adjusting breakfast hours in themembers”. Unfortunately, this budget result does not meet clubhouse after limited membership support and continuedour objective of achieving a break-even result, however is a adjustments to staff rosters to match resources with our needssignificant improvement on the current year’s outcome. as course usage changes, such as two tee starts.The Golf Academy and golf shop remains a focus for financialimprovement in the year ahead. Whilst feedback from thosemembers who have used the Golf Academy has been verypositive, we have not yet seen the uptake we had expectedfrom the general membership. The Committee has invested instate of the art technology and great teachers and we Annual Report 2017/18 Page 15

Annual Report of the CommitteeFinanceCashflow proposed clubhouse development in $880kOur bank balance of $1.96M at the year ahead and the replacement31 March 2018 finished well short of of the irrigation system, upgrade of Cash profit in 2017/18our budget expectations of closing the maintenance facility in years tothe financial year with $2.8M in the come and strategic land acquisition $1.1mbank primarily because the last two as and when necessary or as fundsdays of the membership year fell on become available. Forecast cash profit for 2018/19the public holidays for the Easter The cashflow forecast is simply that,weekend. The variance was purely a forecast and all plans and proposed $548.5ka timing difference, with the cash projects are subject to ongoing reviewbalance at the end of April 2018 and will not happen unless they are Spend onahead of the budget expectations of justifiable and affordable. There are Capital projects in$2.6M at that date. a number of assumptions made in 2017/18The Committee decided to defer the forecast including assumptionsbudgeted capital expenditure of relating to membership numbers, $2.8M$265K in 2017/18 to offset the profitability and cost increases inoperating shortfall against budget. the years ahead. Any change in FORECAST BANK BALANCEFor the full year the Club undertook assumptions will require adjustment AS AT 31 MARCH 2019$548.5K in capital expenditure which to the capital expenditure planswas funded from the cash operating included in the cashflow forecast. $1.96Msurplus of $879K for the year. Whilst Finally, I would like to take thisthe capex needs of the Club change opportunity to thank my fellow BANK BALANCE AS AT 31 MARCH 2018from year to year, as a general Committee members for theirguide the Club’s budget allocates valued assistance and contribution Accounting profit budgetedapproximately $500K for annual throughout the last year on the for 2018/19recurrent / minor Capex. Finance, Audit and Membership10-year cashflow Committee. We have had many long $190KThe Committee maintains a 10-year and thorough discussions and held acashflow forecast to help project number of Special Interest meetings 5% REVENUE GROWTHcash balances in the coming years to focus on specific issues at hand. OFFSET BY 2% INbased on planned capital expenditure These discussions have been robust, OPERATING EXPENSESand major capital projects yet to be passionate and at all times positive forprioritised. While the annual cashflow Kooyonga.of $879K generated for the 2017/18year was closely aligned to previous Crawford Gilesyears, we have a strong desire to Chair - Finance, Audit & Membershipincrease the annual cash surplus of Committeethe Club in excess of $1 Million toensure major capital projects forecastfor the next 10 years can be fundedwithout major debt.The 10-year cashflow forecast willbe presented at the Annual GeneralMeeting as part of a presentation onthe Clubhouse Masterplan to explainthe funding options considered andtheir financial impacts. The forecastallows for up to $10 Million in specialprojects to be completed over thenext 10 years, including projects likelyo be necessary to maintain the Club’sassets and projects we think shouldbe added to grow and achieve theClub’s strategic goals, including theAnnual Report 2017/18 Page 16

Annual Report of the Committee Membership Playing Male 2016/17 Total Male 2017/18 Total Category 4 Female 8 4 Female 8 4 4Life 1 2 0 1 549 1 568 519 1 537Honorary Membership 103 19 320 105 18 316Category One 155 217 196 174 211 216Category Two 5 41 5 5 42 5Absent 22 0 24 21 0 23Clergy 97 2 164 102 2 174Country 25 67 30 23 72 27Honorary Social 43 5 51 33 4 42Interstate 10 8 14 7 9 11Junior 2 4 2 2 4 2Junior Cadet 4 0 8 4 0 4Junior Country 35 4 39 33 0 37Junior Ambassador 1 4 1 1 4 1Overseas 15 0 19 12 0 13Reciprocal 1 4 2 1 1 1Senior 38 1 47 19 0 26Social 28 9 28 23 7 25Temporary 11 0 11 17 2 17Under 30 (21-25) 2 0 2 2 0 2Under 30 (26-30) 1 0 1 0 0 0Veteran 0 0 1 0 0 1Veteran 50 Years 1152 1 1543 1107 1 1489Veteran Associate 391 382Welcome to New Members in 2017/18 Our total membership numbers have declined from 1543 to 1489April 2017 October 2017 over the last 12 months. We had 76Dr U Scelwyn, Mr JE Swift, Ms IM Cross, Mr JR Percey playing members either resign orMr JRR Cross December 2017 transfer to a non-playing categoryMay 2017 Miss PD Perkins, Mr DJ Worrall in 2017/18, an attrition rate of 7%Mr PJ Dewick, Mr D Gronert, Mr SG Hill, March 2018 compared to 6% last financial year.Mr OP Pritchard, Mr PR Thomas Mr J Hunt, Ms S Bird To offset this reduction, we inducted 19 new playing members to the ClubJune 2017 Temporary in 2017/18 compared to 55 in theMrs J Brown Mr PM Burrows, Mr S Callaghan, 2016/17 year.July 2017 Mr S Connelly, Ms S Efraimsen,Mr R Friend, Mr EK Opie Mrs JE Hurley, Dr Chris Langton, The main reason for the decline inSeptember 2017 Mr T Pierce, Ms J Rice, Mr DJ Rogers, membership in 2017/18 was theMr HD Massey, Mr J Smart Mr C Scott, Miss IR Simpson, Committee’s decision to reduce the Mr GW Stevens, Ms O White, number of Category 1 male members Mr W Zaharis, Dr R Zivkovic from 539 to 519 during the year and not replace them with new Category 2 members from the waiting list. Annual Report 2017/18 Page 17

Annual Report of the CommitteeMembershipThis decision was not taken lightly and was made to improve For the Club to remain at the forefront of the golf industry itmember access to the course after analysing historical data needs a strong and healthy waiting list of people ready to joinon rounds of golf played at Kooyonga in comparison to key the Club, providing vital entrance fees and confidence for thereciprocal clubs as well as daily competition field sizes and Committee to invest in key projects for the benefit of currentspeed of play reports over the last 3-5 years. and future members. Whilst we are able to maintain a smallThe quota for Category 1 will be further reduced to a cap of and manageable waiting list of male members ready to join the500 male members in the year ahead to return our quota for Club each year, of significant concern is our inability to replacethis full playing category to long term historical levels. This female members who resign or transfer to a non-playingchange, together with the recent decision to remove playing category.rights for Category 2 members on a Saturday from 1 April 2020 Our membership statistics show our female playingis expected to improve access to the course and speed of play membership at Kooyonga has declined by 25% over the lastfor Category 1 members, in particular on Saturdays. Committee 10 years (313 in total down to 229 in Cat 1 and 2 currently).will closely monitor rounds data and impacts of these changes This loss of female playing members has had a significantover the next two to three years. financial impact on the Club, which ultimately has led toCommittee will continue to assess subscription fees across higher subscription fees for all members. This impact will likelythe club as well as the fee percentages to ensure they reflect continue with the age of our female membership continuing tovalue for privileges and provide an appropriate level of grow with 112 or 51% of the female playing membership overincome for the Club to remain financially strong and generate the age of 70 compared to 26% for males.appropriate levels of annual cashflow to provide services andfacilities of the highest standard and the ability to fund criticalinfrastructure projects to maintain the competitiveness andattractiveness of the Club.65% of Kooyonga members reside in the Eastern suburbs,31% with living in the 5 most populated postcodes highlightedTop 5 Most Populated Postcodes 2 14Ref Postcode Members# residing 31 5061 115 52 5065 923 5064 914 5066 905 5062 79Annual Report 2017/18 Page 18

Annual Report of the Committee Membership10% Planned decline in Committee is trying to better understand the barriers for females Category One Members joining Kooyonga. To that end we are working closely with the REDUCED 40 CATEGORY ONE Women’s Committee and a group of interested members to MEMBERS OVER LAST 2 YEARS further develop current programmes to attract younger female WITH A FURTHER REDUCTION OF members and a buddy system to encourage and help integrate 20 PLANNED IN 2018/19 them into the membership via temporary pathway memberships. Over the last 12 months, the Women’s Committee has developed 19 a 6 month ‘Tee off with Friends’ temporary membership option as an alternative or stepping stone to the current 12 month New members in ‘Pathway to Membership’ and ‘Family’ Programmes. The aim 2017/18 of these programmes is to help provide a future pipeline of members and we encourage members to recommend this offerOFFSET 76 WHO RESIGNED/TRANSFERRED TO NON PLAYING to family and friends. In total, we inducted 20 new temporary (TOTAL REDUCTION 57 MEMBERS) members during the year, including 14 males and 6 females who are either new to the game or unsure of their commitment to Of our fee paying members: golf and membership of Kooyonga. Our recent women’s forum highlighted that we need to further develop our pathway options 26% of male over a longer period of 2-3 years to help women transition more comfortably into our traditional membership model. All members members are aged over 70 can assist by acting as “ambassadors” and promoting the benefits of membership to prospective members. 51% of female We also need to be tolerant of new-to-golf members and understand that whilst our current culture is one of competition members are aged over 70 golf, it may not be attractive to those new to golf and the Club may need to be open to a participation/learning phase for these Females make up members as they learn the game. This may involve such things as dropping out of bunkers and out of heavy rough. 26% of our Committee will conduct another comprehensive member survey towards the end of 2018 to better understand the membership views of members and identify areas of the Club that require attention. The results will be benchmarked against previous DOWN FROM 31% 10 YEARS AGO surveys conducted to ascertain areas of improvement or decline in certain areas to assist the Committee’s ongoing review of25%Female membership has dropped operations. over the last 10 years Crawford Giles Chair - Finance, Audit & Membership Committee 313 IN TOTAL DOWN TO 229 IN Vale CAT 1 AND CAT 2 It is with deep regret that we record CURRENTLY the deaths during the year of the following members; Mr MS Agars, Mr AK Bazzica, Dr VJ Brazier, Mr DA Crowhurst, Mr JR Deslandes, Mrs AP Fraser, Mr MH Hammer, Dr WE Mann, Dr CE Moore, Mr KA Moore, Mr DF Pearce, MR RL Dahlenburg AM, Mrs BJG Sutton, Mrs KJ Wilkin, Mr J Wilkin, Mrs RM Winter Annual Report 2017/18 Page 19

2017 Simpson Cup Team2017 Sanderson Cup (A1) Team

Annual Report of the Committee Match Our round statistics show our 40 total round numbers remained on par with last year at 47,000 ROUNDS PER MEMBER rounds after consecutive years of growth over the last few years. On average in 2017/18 In comparison, many of our key 25% increase in reciprocal clubs indicate round last 5 years numbers around 40,000 annually.Iam pleased to report that The graph below shows that 47,141 we continue to run a vibrant member competition and socialgolf programme at Kooyonga rounds make up 85% of our total Rounds of golf 2017/18with healthy field sizes rounds in 2017/18 and memberthroughout the year. I take round numbers continue to grow OF WHICH 85% ARE MEMBER ROUNDS,this opportunity to thanks very slightly despite a reduction NO CHANGE SINCE LAST YEARmembers for their interest and in playing members. The dataparticipation in our weekly we have captured since 2012 Average field sizescompetitions and special club indicates that the average numberevents and congratulate all of rounds played by a memberevent winners, many of whom has grown from 32 rounds to 40are formally recognised in the rounds per annum, an increasecompetition results within this of 25% over 5 years. This is areport. positive sign that members areWe continue to track rounds actively using the Club, howeverof golf very closely with the round numbers also need to beMembership Committee to ensure closely monitored against courseour events are well supported access, speed of play and wearand relevant, but also to ensure and tear on the course to ensuremembers are able to book a round our membership experience isand play within acceptable time maintained.frames, a subject I have writtenabout later in my report. major competition days 81 166 1742017/18 2017/18 2017/18 79 167 1722016/17 2016/17 2016/17 Tues Wed Sat 11.95 Average spend on retail per round of golf Annual Report 2017/18 Page 21

Annual Report of the CommitteeMatch3hrs 54 mins 16.9 AVERAGE TIME PER ROUND Increase of 1 minute per Average handicap round over the last 12 months at Kooyonga NO CHANGE OVER LAST 12 MONTHSIn relation to speed of play, a key The document provides some interesting per round over the last 12 monthsinitiative identified within the Club’s research around length of course from 3:53 to 3:54. Wednesday’s hasstrategic plan is to “reduce members’ especially for shorter hitters, and we taken over from Saturday’s as thetime per round” as we know the speed believe our new shorter yellow course at slowest round of golf for the week,with which members can play their 4,952m provides an attractive option for with the average round increasing by around has a fundamental impact on a portion of our membership. concerning 5 minutes per round on atheir enjoyment of the game. To that Following member feedback on the Wednesday to 4:00. While the morningend, the Match Committee has spent draft speed of play document the field teeing off before 9am play in 3:45considerable time over the last 12 final version was published in March each week, the rest of the day suffersmonths analysing speed of play, a 2018. The speed of play By-Law was with mid-morning players averagingsignificant challenge for almost all clubs subsequently updated and the following 4:15. The primary cause of this increasedincluding Kooyonga. The R&A produced KPIs were set for “average length of time time to play is the short tee interval toa Pace of Play Manual which Committee for playing” for full competition fields of accomodate a large field and the partialused as a reference to prepare a approximately 192 players eg (Tue, Wed, two tee start. A full two tee start wouldSpeed of Play document to provide a Sat), assuming groups of 4: reduce the playing times for the secondstrategic framework to tackle the issue half of the field and is being consideredof playing times at Kooyonga. The • Stroke = 4:15 hours by Committee.document outlines a series of primary • Stableford = 4:00 hoursand secondary measures that impact on • Par = 3:50 hours I really encourage all members tospeed of play, and in particular defines To provide some actual data on how we download the speed of play documentthe trade-offs that must be considered. are tracking for member information, from the Club website to help you betterThere are three primary measures the average time per round of golf at understand the issues and in turn workdiscussed; two tee starts, tee interval Kooyonga has increased by one minute on suggested ways to improve yourand the course length. speed of play for the benefit of the membership as a whole. Average Time per RoundAnnual Report 2017/18 Page 22

Annual Report of the Committee Match In terms of highlights from the golfing calendar, on Saturday 17 June 2017, Dr Ken Russell was fired in as Kooyonga’s 46th Captain of this great Club following Dr Grant Raymond’s two year tenure. The tradition of firing in of the Captain comes from an ancient tradition of the R&A dating back to 1863 and one that Kooyonga is proud to continue to follow at the beginning of each new Captaincy of the Club. The Kooyonga Club Championships were played over the June long weekend, for the first time combining the men’s and women’s championships played at the same time. Will Somerfield won his second Men’s Club Championship back to back defeating Joel Durnford in the final while Hayley Hunt won the Women’s Club Championship defeating Lyn McGough. The Junior Club Championships were played on Sunday 22 October with congratulations going to Kyle Hayter for winning the Boy’s Junior Championship and Kate Fitzpatrick for winning the Girl’s Junior Championship. Ken Parker is our Senior Club Champion having defeated Geoff Kay in the final played on 29 October. Christine and Alistair Flynn won the prestigious 2017 RS Thomson with a net score of 72.375 points, closely followed behind runners up, Ed and Iola Betro with a net score of 73.375 points. This historical Club event is always popular, hosting an evening of friendly camaraderie at the dinner presentations. Top image pictured left to right: Rowan Fielke - B Grade Champion, Will Somerfield - Men’s Club Champion, Hayley Hunt - Women’s Club Champion, Richard Henshaw - C Grade Champion Middle image pictured left to right: Kate Fitzpatrick - Girl’s Junior Club Champion and Kyle Hayter - Boy’s Junior Club Champion Bottom image pictured left to right: Chrstine Flynn and Alistair Flynn, 2017 RS Thomson winners Annual Report 2017/18 Page 23

Annual Report of the CommitteeMatchThe popular men’s & women’s between Royal Adelaide, Grange & ‘CLOTS’ comprising of the followinginterclub events saw wins for the Glenelg. In previous years two matches players: Ian Kingsborough, BobWomen’s Kingston Heath team who have been played each year however Lovelock, Craig Mason, Alex Gray, Normtook out the title in Adelaide, the from next season only one match will Cleveland & Bill Nott. ‘CLOTS’ defeatedKooyonga Cargie team who defeated be played between each club and the the ‘Bluebloods’ team by 5 points inRoyal Adelaide by 3 matches and the courses will be rotated on a yearly the final. The Brownlow Medallist forKooyonga Airport Challenge team basis. In the Cudmore Cup Kooyonga the season was Trevor Dolman whowho turned a draw into a win through lost to Royal Adelaide at Royal Adelaide won with 15 votes over Colin Johnsa putting contest. Unfortunately but defeated them at Kooyonga. In who finished with 14.667 votes.Kooyonga was defeated by Kingston the Joyce Goldfinch Trophy KooyongaHeath at Kingston Heath in the 2018 lost to Grange at Grange but also Kooyonga enjoyed a successfulMen’s Kingston Heath Challenge. defeated them at Kooyonga. In the 2017 pennant season. Three ofIn the Women’s Kingston Heath Pauline Sanderson Bowl which was only our teams made it through to finalsChallenge, 20 players competed in played once during the year, Kooyonga seeing Simpson Cup, Women’s A2each team with the best 16 scores defeated Glenelg at Glenelg. and Sharp Cup all fighting for theirout of 20 counting for the title. The The MAKK Cup is an event played respective trophy, however each wasKooyonga team managed a score between the Committees from The unfortunately defeated by a powerfulof 471 points while the Kingston Australian, Lake Karrinyup, Metropolitan Glenelg line up. Our Women’s A1 teamHeath team managed a score of 434 and Kooyonga golf clubs and in 2018 lost to Grange in their final round,points. The event was played in very was played at The Australian Golf Club. resulting in them coming 3rd on thehot conditions with practice rounds Historically the event is won by the ladder whilst our Bonnar Cup teambeing cut short due to the extreme host team and there were no surprises similarly finished 3rd tied on matchesheat. This is an event which is enjoyed in 2018 with The Australian Golf Club but just 2 individual games outsideby all participants and fosters the team taking out the title by 16 points of second place. Our Junior Div. 2camaraderie between the clubs over The Metropolitan Golf Club team. team finished in 5th place and gainedUnfortunately Kooyonga was defeated Kooyonga finished only 2 shots behind valuable experience for the futureby Kingston Heath at Kingston Heath The Metropolitan Golf Club team in whilst our women’s A4 team finishedin the 2018 Men’s Kingston Heath third place. Nine players represent 7th, A3 finishing 3rd and Cleek OneChallenge. The number of players was the Club in the MAKK Cup with seven finishing 6th.reduced from 20 to 12 this year and scores counting on both days. Thethe Kingston Heath team achieved a best performing Kooyonga member Hole in Onesscore of 540 points with 9 scores out was Crawford Giles with a two roundof the 12 players counting on both Stableford score of 62 points. Congratulations to the followingdays while the Kooyonga team was In 2017 the inaugural Women’s Golf memebers who achieved a hole-only able to manage a score of 508. Premier League was introduced to run in-one through the 2017/18 year:Walford Thyer was the best performer alongside the existing men’s series. Afor Kooyonga with a two round total of 8 teams of 6 players competed Paul Brown, 3rd holeStableford score of 62 points. across the season. Much fun was had Michael Gilroy, 14th holeThe Cargie is always a popular event by all, with players making great efforts Daniel Speirs, 3rd holewith 52 players competing for the to be there for the key competition Cathy Barton, 14th holeClub. The dinner in 2017 was held at days to try and defeat their opponentsRoyal Adelaide and it was great to be on the day. The Grand Final was won Brent Kitson, 3rd holeable to return the trophy to Kooyonga by Jude’s Jewels winning a tight Paddy Bowler, 3rd holefollowing the dinner. The pair with match by 2 points over The Mixtures. David Christensen, 3rd holethe greatest winning margin was John Congratulations to the winning team Shaun Fowler, 14th holeGarrett & Greg Jaunay who defeated comprising of Jude Marlow, Kay Miki, Alan Jones, 14th holetheir Royal Adelaide opponents at Jodie Deacon, Jan Marriott, Penny Wark Alistair Flynn, 14th holeKooyonga 6/5. and Lisa Ingerson. Well done to PipThe women have recently reduced the Oxenham who took out the Brownlow Geoff Kay, 14th holenumber of interclub matches played Medal. Twelve teams participated in Bob Hall, 3rd hole the 2017 Men’s Golf Premier League. Congratulations to the winning team Jordan Percey, 7th hole Will Thredgold, 7th holeAnnual Report 2017/18 Page 24

Annual Report of the Committee MatchThe Men’s Pennant Committee spent several planning I wish to highlight two individuals who have achievedsessions reviewing the 2017 season and planning for fantastic golf results in 2017/18. Firstly I would like tothe upcoming 2018 season. Several key initiatives were acknowledge Bruce Lindner who was the winner of the 2017identified for the new season and beyond. An annual Bonython Medal with a nett score of 72 by one shot frompennant challenge against Kingston Heath which we hoped Harry Simpson and Peter Marshall. He qualified after winningwould kick off in 2018 will start in 2019 with Kooyonga an impressive three monthly medals. Bruce Lindner was alsovisiting Kingston Heath for the inaugural match. We have selected for the Golf Australia Senior Team to play againstalso instigated a new trophy for the best performed pennant the Australian Defence Forces team at The National Golfplayer leading up to the start of pennants across all major Club on the Mornington Peninsula, March 25-27. Bruce isclub, state and national events. We have named this the a regular contender in the South Australian Senior Order ofCaptain’s Cup in honour of all our past Captains, and in Merit events (2017 Nett winner) and in the National Seniorparticular the group of Captains who regular attend pennant Events and finished ranked 12th in the Australian Amateurmatches and support our teams with such passion. The aim Senior Men’s Rankings.of this is to increase participation by the pennant squad in Secondly I would like to acknowledge Kyle Hayter who woncompetitive events leading up to the pennant season. There the best pennant player of the year, with an excellent recordwill be some new faces in our teams this year, and we are of 6 wins, 1 half and 1 loss in Simpson Cup, including a veryquietly confident we can acquit ourselves well, and uphold meritorious win in the final. He finished 2nd in the 2017the fine playing tradition that Kooyonga has in the Pennant Junior Vardon with the fine scoring average of 72.63. Kylecompetition. captained the South Australian Schoolboys team event heldNew iniatives for the women’s pennant include players in Adelaide in December for the Pacific School Games wherespending one-on-one time with John Corbett in the Golf he won 3 out of 5 matches playing no. 1, and was selectedAcademy utilising the amazing technology available to in the All Australian Team. Kyle was Vice Captain of the 2017improve their individual games. Group clinics have also been SA Junior team with a fantastic result of 6 wins from hisarranged to ensure the women approach the season with 7 matches, to be SA player of the series. He won both theconsistency. 2018 will see Kooyonga fielding 6 pennant Kooyonga Cup and Kooyonga Junior Championship amongstteams for the first time; A1, A2, A3, A4 and Cleek 1 and 2. a number of other achievements – Kyle has enormousThis is the largest number fielded by any clubs competing potential and we will watch with great enthusiasm hiswhich is great to see such a keen interest in our members progress over the next few years.representing the Club in pennant golf. Tim SennettA new initiative derived from planning sessions held Chair - Match Committeethroughout the year is the introduction of a KooyongaPennant Supporters group. Members joining this group willreceive a supporter’s apparel pack and invitations to keyPennant functions and dinners.Chris Bonython presenting Bruce Kyle HayterLindner with the Bonython Medal Annual Report 2017/18 Page 25

Annual Report of the CommitteeCompetition ResultsMen’s Competition ResultsState Events Winner Runner-UpSimpson Cup Glenelg KooyongaBonnar Cup Glenelg GrangeSharp Cup Glenelg KooyongaClub Events Winner Runner-UpClub Championship Will Somerfield Joel DurnfordWS Shephard Club Medallist‘A’ Grade Plate Joel Durnford Will Somerfield‘B’ Grade Trophy‘B’ Grade Plate James Percey Ken Parker‘C’ Grade Trophy‘C’ Grade Plate Rowan Fielke Karl KirstenClub Senior ChampionshipClub Senior Handicap Angas Hains John DoyleClub Foursomes ChampionshipClub Foursomes Handicap Richard Henshaw Ajit BediClub Junior ChampionshipClub Junior Handicap Alan Howkins Ken KinnaneMonthly Medals Ken Parker Geoff Kay John Bell James Harvey Will Somerfield & Sam Inglis Geoff Brennan & Geordie Golding Nick O’Connell & Tom Hunter Hugh Cranendonk & Elliot Opie Kyle Hayter Darcy Salamon Jordan Percey Hayden Massey A: Garry Davis, David Martin, Joe Hodgson, Jake Eadie, Jack McKean, Rob Parish, Chris Champion, Geoff Kay, Sean Bushby, Scott Duval, William Thredgold, David Fraterman, B: Rick Woollard, Leon Holmes, Mike Schulze, Mick Taylor, Robert Young (2), George England, Walford Thyer, Matthew Cleave, Anthony Di Paolo, Dean Willing, Angas Hains C: Glenn Wyatt (2), Gerry Green, Daryl Wood (2), Bob Babidge, Neil Scrutton, Ajit Bedi, Ken Daunt, David Simpson, Scott Henchliffe, Nick ConolanJunior Summer Trophy Connor Fewkes (Goldfields) Thomas Heaton (The Australian)HL Rymill ChampionshipKooyonga Cup Jack Tanner (Glenelg) Alex Pacifico (Royal Adelaide)Bonython MedalPlayfair Putter Kyle Hayter James PerceyTH Brown TrophyJW McGregor Cup Bruce Lindner Harry SimpsonCaptain’s TrophyAnzac Cup Will Somerfield Heath RichesAnzac MemorialFather & Son Cup Peter Marshall Michael DaveyFS Mann Winter Eclectic Paddy Bowler Adam RogersSummer Eclectic Robert Fidock Nick O’Connell Keith Plummer Carrol Reynolds Chris Muirhead Jake Eadie Tim Thredgold & William Thredgold Geoff Brennan & Rory Brennan A - Paddy Bowler & Steve Plamenac (Joint winners) B - Nick O’Connell B - Mick Taylor C - Bernie Kavanagh C - Rob Mann A - Geoff Kay A - Gary Allison B - John Holyoak B - Matthew Cleave C - Ivan Hutchin C - Randall ClappWinter Four-Ball Peter Myhill & Hugh Harley Alexander Sawers & Karl KirstenSummer Four-Ball Quentin Brown & Chris Woollacott Sam Atkins & Nick HowardAnnual Report 2017/18 Page 26

Annual Report of the Committee Competition ResultsMixed Competition ResultsClub Events Winner Runner-UpRS Thomson Alistair Flynn & Christine Flynn Ed Betro & Iola BetroFather & Daughter Mitch Trenorden & Lane Trenorden Peter Robinson & Alice RobinsonMother & Son Megan Thredgold & William Thredgold Judy Hyde & Tim ThredgoldFamily Mixed Foursome Jill Trenorden & Reg West Lesley Smith & Graeme SmithClub Mixed Foursomes Championship Heath Riches & Bella Cahill-Terrell Gary Chenoweth & Karen ChenowethMixed Four-Ball Scott MacKenzie & Amanda MacKenzie Gary Chenoweth & Karen ChenowethWomen’s Competition ResultsState Events Winner Runner-UpWomen’s A1 Pennant Grange GlenelgWomen’s A2 Pennant Glenelg KooyongaWomen’s A3 Pennant Tea Tree Gully Royal AdelaideWomen’s A4 PennantWomen’s Cleek 1 Glenelg Thaxted ParkClub Events Grange North AdelaideClub Championship Winner Runner-Up‘A’ Grade PlateBronze Cup Hayley Hunt Lyn McGough‘B’ Grade PlateC Grade Salver Christine Flynn Sally HammerRoss Sawers ChampionshipBantick Salver Pip Oxenham Louise BowlerOlive Griggs CupVice Captain’s Foursomes Angela Fleming Marg FoleyClub Junior Championship Bets Moore Wendy MutchJunior Girls’ Invitational Deb Percey & Jodie Deacon Penny Wark & Jill TrenordenCaptain’s Trophy Helen Egar & Barb Burnet Nol Parkyn & Angela FlemingPresident’s Trophy Cris Pollard & Jo Ryan Bets Moore & Sally GambleMonthly Medals Angela Fleming & Virginia Lacey Heather Gilbert & Carol Smith Kate Fitzpatrick Emily GiotisSaturday Summer MedalSaturday Winter Medal Cassey Porter (Peregian Spring) Charley Jacobs (Glenelg)Valerie Hill Trophy Jodie Deacon Jane HunterMother & Daughter Skye Jarvis Anna Wyett A: Karen Chenoweth, Christine Flynn, Hayley Hunt, Skye Jarvis, Louise Pittman, Merry Frogley B: Angela Fleming, Helen Moore, Margaret Southwood, Anna Wyett, Sue Parsons, Louise Bowler C: Lesley Smith, Chris Pollard, Faye Perks, Cathy Miller, Marg Johnstone, Di Wood Anne Brown Jill Trenorden Di Bamford Pam Marshall Sue Fuller & Jane Fuller Sue Cox & Robyn Cox Annual Report 2017/18 Page 27

Financial ReportFor the Year Ended31 March 2018

Content of Financial Statements Statement of Comprehensive Income 30 Statement of Financial Position 34 Statement of Changes in Equity 35 Statement of Cash Flows 36 Notes to and Forming Part of the Accounts 37 Statement by the Committee 47 Audit Report 48 Five Year Summary 50

Statement of Comprehensive IncomeFor year ended 31 March 2018Classification of Income and Expenses is by Function 2018 2017 $ $ Note 3,048,154 3,011,914Income 17,565 17,359Memberships 3,065,719 3,029,273 Subscriptions Other (42,866) (45,705) 291,845 297,472House Contributions (as per supplementary information)Golf Shop Operations Contributions (as per supplementary information) 33,447 21,057 6,270 3,378Other Income 17,491 9,206 Bank income Profit on sale of plant & equipment 57,208 33,641 Other income 3,371,906 3,314,681Total Income (25,577) (22,052)Expenses (as per supplementary information) (931,505) (881,832) (1,795,467) (1,775,339)Finance expenditure (778,458) (754,994)Administration expenditure (3,531,006) (3,434,217)Course expenditureHouse expenditure (159,100) (119,536)Operating surplus/(deficit) before Entrance Fees 174,412 246,737Entrance Fees 15,312 127,201Total Surplus/(Deficit) for Year - 475,000Amounts Received by Kooyonga Foundation for Golf Academy (116,943) -Women's Australian Open (101,631) 602,201Total Comprehensive IncomeThe accompanying notes form part of the financial statements Annual Report 2017/18 Page 30

Statement of Comprehensive IncomeTHE KOOYONGA GOLF CLUB INCORPORATED For year ended 31 March 2018 (supplementary information)STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 MARCH 2018House ContributionBar Sales 2018 2017 Less: Cost of Sales $ $ Gross Profit (2018: 60.5%, 2017: 61%) 720,529 696,157 (284,458) (271,440) 424,717 436,071Food Sales 866,738 839,235 Less: Cost of Sales (409,731) (409,496) Gross Profit (2018: 53%, 2017: 51%) 457,007 429,739Other Income 26,239 19,978Total Trading Gross Profit 919,317 874,434Less: (989,275) (949,966) Salaries and associated costs (17,578) (10,419) Other direct expenses (1,006,853) (960,385)Profit/(loss) for the year (87,536) (85,951)Add: Unused catering levy 44,670 40,246Total House Contribution (42,866) (45,705) Page 3The accompanying notes form part of the financial statements Annual Report 2017/18 Page 31

Statement of Comprehensive IncomeFor year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2018(supplementary information)STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 MARCH 2018Golf Shop Operations Contribution 2018 2017 $ $ Retail Sales Less: Cost of Sales 562,261 507,095 Gross Profit (2018: 30.6%, 2017: 31.2%) (390,114) (348,886) 158,209Other Golf Operations Income 172,147 Tuition (net) 29,873 Driving Range 26,663 53,842 Hire Equipment 52,320 Club & Buggy Handling & Cleaning Fees 10,452 9,479 Competition Fees 81,517 78,602 Green Fees 188,943 173,974 Motorised Cart Fees 221,276 251,252 Trade days income 84,380 76,967 Other 223,335 171,193 16,897Total Trading Gross Profit - 1,077,930Less Golf Operations Expenditure 1,003,391 Buggy Expenses (45,351) Depreciation (40,824) (20,225) Driving Range (11,166) (38,666) Other (28,650) (13,182) Pennant Expenses (31,750) (33,495) Professional Retainer (26,859) Promotion & Communication - Repairs and Maintenance (9,367) - Salaries & Associated Costs (15,133) Trophies & Prizes (635) (466,901) (823) (151,441) (430,946) (786,085) (126,589) (705,919)Total Golf Shop Operations Contribution 291,845 297,472The accompanying notes form part of the financial statemPeangtes4 Annual Report 2017/18 Page 32

Statement of Comprehensive IncomeTHE KOOYONGA GOLF CLUB INCORPORATED For year ended 31 March 2018 (supplementary information)STATEMENT OF COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 MARCH 2018Course Expenditure: 2018 2017 Bore maintenance, electricity & water costs $ $ Chemicals, turf & sundry expenses Consultants fees 82,008 44,644 Course maintenance 180,252 182,289 Depreciation Petrol, oil & lubricants 8,622 6,959 Plant maintenance 43,551 43,924 Vegetation & Tree Maintenance 416,873 399,827 Wages & associated costs 25,047 24,308 57,112 57,943 21,665 38,134 960,337 977,311 1,795,467 1,775,339House Expenditure: 405,779 390,757 Depreciation 95,024 92,320 Cleaning 58,928 55,878 Maintenance 79,344 68,685 Light, power & gas 32,936 28,192 Laundry 31,986 33,028 Upkeep of Surrounds 74,461 86,134 Other 778,458 754,994Administration Costs: 2 9,750 9,500 Auditors remuneration Committee expenses 21,466 16,184 Computer software & website expenses Insurance premiums and claim expenses 36,380 27,943 Printing, stationery, postage & telephone Rates & Taxes 36,838 35,115 Salaries & associated costs Membership Promotional & Marketing Expenses 28,632 32,616 Other 114,307 105,270 559,162 526,003 13,862 21,792 111,108 107,409 931,505 881,832Finance & Property Expenses: 25,577 22,052 Interest & bank fees 25,577 22,052 Page 5The accompanying notes form part of the financial statements Annual Report 2017/18 Page 33

Statement of Financial PositionAs at 31 March 2018 Note 2018 2017 $ $ 3Current Assets 4 1,961,762 2,191,583 5 307,116 113,744 Cash & cash equivalents 6 298,112 242,962 Trade & other receivables 98,469 142,051 Inventories Other current assets 2,665,459 2,690,340Total Current Assets 7 8,094,676 8,426,884Non-Current Assets 8 140,837 123,898 Property, plant and equipment 8,235,513 8,550,781 Capital works in progress 10,900,972 11,241,121Total Non-Current Assets 9 682,085 681,028Total Assets 10 1,838,037 2,055,952Current Liabilities 11 269,644 305,234 Trade & other payables Other current liabilities 2,789,766 3,042,214 Short term provisions 11 60,701 46,771Total Current Liabilities 60,701 46,771Non-Current Liabilities 2,850,467 3,088,985 Long term provisions 8,050,505 8,152,136Total Non-Current Liabilities 8,050,505 8,152,136Total Liabilities 8,050,505 8,152,136Net AssetsEquity Retained earningsTotal EquityThe accompanying notes form part of the financial statementsAnnual Report 2017/18 Page 34 Page 5

Statement of Changes in Equity For the year ended 31 March 2018 Retained Total Earnings $ $2017 7,549,935 7,549,935 602,201 602,201Balance as at 1 April 2016Total surplus (deficit) for the year 8,152,136 8,152,136Balance as at 31 March 2017 8,152,136 8,152,1362018 (101,631) (101,631) 8,050,505 8,050,505Balance as at 1 April 2017Total surplus (deficit) for the yearBalance as at 31 March 2018The accompanying notes form part of the financial statements Annual Report 2017/18 Page 35 Page 6

Statement of Cash FlowsFor year ended 31 March 2018 Note 2018 2017 12 $ $ 3Cash Flows from Operating Activities 5,710,337 5,874,043 174,412 246,737Receipts from customers/membersEntrance fees (5,606,000) (5,238,211)Payments to suppliers & employees (78) (4)Interest paidInterest received 33,447 21,057Net cash provided by (used in) operating activities 312,118 903,622Cash Flows from Operating Activities (531,682) (1,347,428) (16,939) (59,407)Payments for purchase of property, plant & equipment 6,682 70,352Payments for capital work in progress - 475,000Proceeds from sale of property, plant & equipmentAmounts received for new assets (541,939) (861,483)Net cash provided by (used in) investing activities (229,821) 42,139Net increase/(decrease) in cash held 2,191,583 2,149,444Cash at beginning of the year 1,961,762 2,191,583Cash at end of the yearThe accompanying notes form part of the financial statementsAnnual Report 2017/18 Page 36 Page 7

Notes to and Forming Part of the AccountsTHE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2018NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2017Note 1 - Statement of Significant Accounting PoliciesThe financial report is a general purpose financial report that has been prepared in accordance with Accounting StandardsAustralian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and therequirements of the Associations Incorporation Act of 1985 (SA).The financial report of Kooyonga Golf Club Inc complies with all Australian equivalents to International Financial ReportingStandards (IFRS) in their entirety.Basis of PreparationThe financial report has been prepared on an accruals basis and is based on historical costs and does not take into accountchanging money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of theconsideration given in the exchange for assets. Unless otherwise stated, the accounting policies adopted are consistent with thoseof the previous year.The following is a summary of the material accounting policies adopted by the entity in preparation of the financial report. Theaccounting policies have been consistently applied unless otherwise stated.a) Recognition of Revenue The Club records entrance fees as a non-operating revenue rather than as an item of operating revenue in the income statement.b) Income Tax The Club is exempt from income tax under Section 23(g)(iii) of the Income Tax Assessment Act . Therefore no tax has been provided in the accounts.c) Inventories Inventories are measured at the lower of cost and net realisable value.d) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land is shown at cost. Building is shown at cost less any accumulated depreciation and impairment losses. Plant and Equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. Depreciation The depreciable amount of all fixed assets including buildings, but excluding freehold land, is depreciated on a straight line basis over their useful lives to the Club commencing from the time the asset is held ready for use. The depreciation rates for each class of depreciable assets are:Page 8 Annual Report 2017/18 Page 37

Notes to and Forming Part of the AccountsFor year ended 31 March 2018THE KOOYONGA GOLF CLUB INCORPORATEDNOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2018Note 1 - Statement of Significant Accounting Policies (cont)Depreciation (cont.)Category Useful LivesBuildings 5%- Brick & Stone- Wood & Iron 10%Course development 10%Watering systemBores 4%Plant & equipment 5%Computer equipment 10 -20% 30%Impairment of AssetsAt each reporting date, the Committee reviews the carrying values of its assets to determine whether there is any indicationthat those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher ofthe asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Any excess of the asset'scarrying value over its recoverable amount is expensed to the income statement. Where it is not possible to determine recoverable amount of an individual asset, the Committee estimates the recoverable amount of the cash-generating unit to which the asset belongs.e) Employee Benefits Provision is made for the Club's liability for employee benefits arising from services rendered by employees to balance date. Employee benefits expected to be settled within one year together with benefits arising from salaries and wages, annual leave and sick leave which will be settled after one year, have been measured at their nominal amount. Other employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits.In determining the liability for employee entitlements to long service leave the Club has satisfied itself that based on pastexperience, the accrual of the Club's long service leave liability based on remuneration rates and on costs current at balancedate for all employees with five or more completed years of service provides an estimate of the long service leave liability notmaterially different from the estimate determined using the present value basis of measurement.f) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. Page 9Annual Report 2017/18 Page 38

Notes to and Forming Part of the AccountsTHE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2018NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2018Note 1 - Statement of Significant Accounting Policies (cont)g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.h) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Certain comparative figures have been restated where necessary to conform with current period presentation.i) New Accounting Standards and Interpretations Certain new accounting standards and interpretations have been published that are not mandatory for 31 March 2018 reporting periods. The Kooyonga Golf Club Inc have received preliminary advice that the following new accounting standards may impact future reporting: AASB 15: “Revenue from contracts with customers” (applicable from 1 April 2018) will replace the current accounting requirements applicable to revenue with a single, principles-based model. This will affect the timing of revenue recognition in the future, in particular for entrance fees. AASB 16: “Leases” (applicable from April 2019) will replace the current accounting requirements applicable to leases in AASB 117 : Leases and related Interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases. It requires a right-of-use asset to be brought to the balance sheet and depreciated in line with the Clubs depreciation policy. A corresponding liability will be recognised to the value of the variable lease payments over the life of the lease term. Further advice and guidance is being sought from the Club's advisers with regards to the impact of future standards.Page 10 Annual Report 2017/18 Page 39

Notes to and Forming Part of the AccountsFor year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2018 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2018 2018 2017 $ $Note 2 - Auditors' Remuneration 7,850 7,500 1,900 2,000Remuneration of the auditor for: 9,750 9,500- auditing or reviewing the financial report- other accounting service 7,000 4,000 1,954,762 2,187,583Note 3 - Cash and Equivalents - -Cash on hand 1,961,762 2,191,583Cash at bankShort term deposits 307,116 113,744 - -Note 4 - Trade and Other Receivables 307,116 113,744Trade receivablesLess: Provision for impairment of receivables 66,747 52,957 22,185 19,269Note 5 - Inventories 205,113 169,160Stock - Bar 4,067 1,576Stock - Dining Room 298,112 242,962Stock - Golf ShopStock - Miscellaneous 94,269 140,641 4,200 1,410Note 6 - Other Current Assets 98,469 142,051PrepaymentsOther Page 11Annual Report 2017/18 Page 40

Notes to and Forming Part of the AccountsTHE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2018NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2018 2018 2017 $ $Note 7 - Property, Plant and EquipmentFreehold land & buildings (at cost) 7,466,450 7,428,609Less: Accumulated depreciation (2,483,115) (2,143,086) 4,983,335 5,285,523Course development (at cost)Less: Accumulated depreciation 1,799,470 1,696,835 (898,106) (739,848)Watering equipment (at cost) 901,364 956,987Less: Accumulated depreciation 1,680,388 1,654,693Course building, plant & equipment (at cost) (1,150,825) (1,069,361)Less: Accumulated depreciation 529,563 585,332Furniture, fittings & equipment (at cost)Less: Accumulated depreciation 2,472,219 2,588,009 (1,423,104) (1,465,265)Golf Shop Equipment & Buggies (at cost) 1,049,115 1,122,744Less: Accumulated depreciation 1,136,799 907,144Total property, plant and equipment (732,621) (668,108) 404,178 239,036 327,889 361,213 (100,768) (123,952) 227,121 237,261 8,094,676 8,426,883Note 7(a) -Movement in Carrying Amounts Land & Course Watering Course P&E Furniture & Golf Shop Buildings Develop Equip & Buildings Fittings Equip Total $ $ $ $ $ $$Balance at beginning of 5,285,523 956,987 585,332 1,122,744 239,036 237,261 8,426,883the year 37,841 102,635 25,695 103,522 - - - 231,305 30,684 531,682Additions - (81,464) (177,151) (340,029) (158,258) (412) - (412)Disposals (65,751) (40,824) (863,477)Depreciation expenseCarrying amount at the 4,983,335 901,364 529,563 1,049,115 404,178 227,121 8,094,676end of the year Page 12 Annual Report 2017/18 Page 41

Notes to and Forming Part of the AccountsFor the year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2018 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2018 2018 2017 $ $Note 8 - Capital Work in Progress 26,505 64,346 42,216 41,094Kooyonga Foundation Golf Academy 72,116 18,4585 year plan course works 140,837 123,898Other 413,394 498,710Note 9 - Trade and Other Payables 268,691 182,318 682,085 681,028CurrentTrade payables 153,920 184,066Sundry payables and accrued expenses 1,684,117 1,871,886 1,838,037 2,055,952Note 10 - Other LiabilitiesDining room levies in advanceSubscriptions and other monies in advance Page 14Annual Report 2017/18 Page 42

Notes to and Forming Part of the AccountsTHE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2018NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2018 Long Service Annual Leave Leave TotalNote 11 - Provisions 170,963 181,042 352,005 150,822 16,815 167,637Opening balance at 1 April 2017 (138,113) (51,184) (189,297)Additional provisions 183,672 330,345Taken during the year 146,673Closing balance at 31 March 2018 2017 2018 $Current: $ 170,963Annual leave 134,271Long service leave 183,672 305,234 85,972Non-current: 46,771Long service leave 269,644 127,201Note 12 - Statement of Cash Flows 60,701 829,249Reconciliation of cash flow from operations with operating surplus/(deficit): (101,631) (3,378)Operating surplus/(deficit) 863,477 (52,105) (6,270) (12,784)Non-cash items in operating surplus/(deficit) (43,794) Depreciation (193,372) (133,175) (Profit)/losses on sale of property, plant & equipment 43,582 102,018 (55,150) 90,390Changes in Assets and Liabilities 903,622 (Increase)/Decrease in receivables (217,915) (Increase)/Decrease in other assets (21,660) (Increase)/Decrease in inventories Increase/(Decrease) in other liabilities 1,057 Increase/(Decrease) in provisions 312,118 Increase/(Decrease) in payables and accrualsCash flow from operationsPage 15 Annual Report 2017/18 Page 43

Notes to and Forming Part of the AccountsFor the year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2018 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2018 Note 13 - Credit Standby Facilities A bank overdraft facility of $310,000 is available however at balance date no amount was drawn against this facility. The facility is secured by Registered Mortgages over the Club's freehold property. Note 14 - Remuneration of Committee Members No amounts were received or due and receivable from the Club by the Committee. Note 15 - Financial Instruments a) Interest Rate Risk The Club's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows: Weighted Floating Fixed Interest Total Average Interest Rate Rate Maturing Effective Within 1 Interest Year Rate 2018 2017 2018 2017 2018 2017 2018 2017 %% $ $ $ $ $ $Financial Assets 1.20 1.25 1,954,762 2,187,583 - 1,954,762 2,187,583Cash at bank --Short term deposits 2.55 2.75 -Total Financial Assets 1,954,762 2,187,583 - - 1,954,762 2,187,583THE KFiOnaOnYcOiaNl LGiaAbGiliOtiLeFs: CLUB INCORPORATEDBorrowings -- - -- -NOTETSotTaOl FAinNanDcFiaOl LRiMabINiliGtiePsART OF THE ACCOUN-TS -- - - -FOR THE YEAR ENDED 31 MARCH 2018b) Credit RiskThe maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date torecognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the balancesheet and notes to the financial statements. The Club does not have any material credit risk exposure to any singledebtor or group of debtors under financial instruments entered into by the Club.c) Net Fair ValuesThe aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in thebalance sheet and the notes to and forming part oPfathgee a1c6counts.Annual Report 2017/18 Page 44

Notes to and Forming Part of the AccountsTHE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2018NOTES TO AND FORMING PART OF THE ACCOUNTSFOR THE YEAR ENDED 31 MARCH 2018Note 15 - Financial Instruments (cont)d) Sensitivity Analysis The Club has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date. The sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these risks.As at 31 March 2018, the effect on profit and equity as a result of changes in the interest rate, with all other variablesremaining constant would be as follows: 2018 2017 $ $Change in profit 39,095 43,752- Increase in interest rate by 2% (39,095) (43,752)- Decrease in interest rate by 2%Change in equity 39,095 43,752- Increase in interest rate by 2% (39,095) (43,752)- Decrease in interest rate by 2%Note 16 - Leasing CommitmentsOperating lease commitments being for the lease of land and motorised carts payable: 52,252 52,032 - not later than one year 78,378 130,449 - later than one year but not less than five - later than five years - - 130,630 182,481Note 17 - Related Party Transactions(a) The names of the Committee in office at the date of this report are:Dr Kenneth John Russell Mr Sam John AtkinsMrs Debbie Ann Alexander Mr Timothy John SennettMr Gary Dean O’Loughlin Ms Helen Elizabeth EgarMr Terry James Anderson Mr Crawford David GilesMr Anthony John Timmins Dr Angas Douglas Bell Hains(b) During the financial year, no members of the Committee have received directly or indirectly from the Club, other than mentioned in (c), any payments or other benefits of pecuniary value other than in the case of officers employed by the Club who received approved salaries which have been determined in accordance with general market conditions.(c) During the financial year, the club purchased wine from ‘Fox Gordon Pty Ltd’ and 'Atkins Family Vineyards Pty Ltd', two companies controlled by Mr Sam Atkins. The companies were paid $6,184. The club also purchased electronic equipment from 'Powermove Distribution Pty Ltd', a company coltrolled by Crawford Giles. The company was paid $7700. Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties. Page 17 Annual Report 2017/18 Page 45

Notes to and Forming Part of the AccountsFor the year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2018 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2018 Note 18 - Contingent Liabilities There were no contingencies facing the Club as at 31 March 2018 that have not been brought to account in the financial statements. Note 19 - After Balance Date Events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the entity, the results of those operations, or the state of affairs of the entity in future financial years. Note 20 - Capital Management The Committee members control the capital of the Club in order to maintain a good debt-to-equity ratio and to ensure that the Club can fund its operations and continue as a going concern. The Club's debt and capital includes financial liabilities, supported by financial assets. There are no externally imposed capital requirements. The committee members effectively manage the Club's capital by assessing the Club's financial risks and adjusting its capital structure in response to changes in these risks and in the market. The responses include the management of debt levels. There have been no changes in the strategy adopted by management to control the capital of the Club since the prior year. This strategy is to ensure that there is sufficient cash to meet trade and sundry payables and borrowings. Note 21 - Club Details The principal place of business of the Club is: May Terrace Lockleys SA 5032Annual Report 2017/18 Page 46 Page 18

Statement by the CommitteeTHE KOOYONGA GOLF CLUB INCORPORATEDStatement by the CommitteeIn the opinion of the Committee of the Club the financial report as set out on pages 30 to 46: 1 Present fairly the financial position of the Club as at 31 March 2018 and it's performance for the year ended on that date in accordance with Australian Accounting Standards, mandatory professional reportin requirements and other authoritative pronouncements of the Australian Accounting Standards Board. 2 At the date of this statement, there are reasonable grounds to believe that the Club will be able to pay its debts as and when they fall due. 3 During the financial year ended 31 March 2018 no officer of the Club, firm of which any officer of the Club is a member or body corporate in which any officer of the Club has a substantial financial interest has received or become entitled to receive a benefit as a result of a contract between any officer, firm or body corporate and the Club, except for those disclosed in Note 17. 4 During the financial year ended 31 March 2018 no officer of the Club has received directly or indirectly from the Club any payment or other benefit of a pecuniary value.This statement is made in accordance with a resolution of the Committee and is signed for and on behalf ofthe Committee by:KJ Russell CD GilesCaptain Chairman - Finance, Audit & MembershipDated at Lockleys, S.A on the 23rd day of May 2018 Page 19 Annual Report 2017/18 Page 47

Independent Audit Report to the members Bentleys SA Audit Partnershipof Kooyonga Golf Club Inc. Level 2 139 Frome Street Adelaide SA 5000 GPO Box 939 Adelaide SA 5001 ABN 43 877 091 903 T +61 8 8372 7900 F +61 8 8372 7999 [email protected] bentleys.com.auOpinionWe have audited the financial report of Kooyonga Golf Club Inc, being a general purpose financialreport which comprises the statement of financial position as at 31 March 2018, the statement ofcomprehensive income, statement of changes in equity and statement of cash flows for the yearended on that date, accompanying notes to the financial statements and the statement by thecommittee.In our opinion, the financial report of Kooyonga Golf Club Inc. presents fairly in accordance withAustralian Accounting Standards, the Association Incorporations Act of South Australia and othermandatory professional reporting requirements in Australia, the financial position of Kooyonga GolfClub Inc. and the entity as at 31 March 2018 and the results of their operations and cash flows for thefinancial year then ended.Basis for OpinionWe conducted our audit in accordance with Australian Auditing Standards. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the FinancialReport section of our report.We are independent of the Club in accordance with the ethical requirements of the AccountingProfessional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants(the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled ourother ethical responsibilities in accordance with the Code.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.Committee's responsibility for the financial reportThe Committee of the Club is responsible for the preparation and fair presentation of the financialreport in accordance with Australian Accounting Standards (including the Australian AccountingInterpretations) and the Association Incorporations Act 1985 (SA). This responsibility includesestablishing and maintaining internal controls relevant to the preparation and fair presentation of thefinancial report that is free from material misstatement, whether due to fraud or error; selecting andapplying appropriate accounting policies; and making accounting estimates that are reasonable in thecircumstances. A member of Bentleys, an association of independent accounting firms in Australia. The member firms of the Bentleys association are affiliated only and not in partnership. Liability limited by a scheme approved under Professional Standards Legislation. A member of Kreston International. A global network of independent accounting firms.