Kooyonga Annual Report 2018-19

Annual Report 2018 - 2019

CORE VALUES Respect Excellence Inclusive Friendly CONTENTS 15 MEMBERSHIP 18 OVERVIEW OF SURVEY RESULTS 02 OFFICE BEARERS AND COMMITTEE 20 MATCH 03 CAPTAIN’S REPORT 26 COMPETITION RESULTS 08 COURSE 28 FINANCIAL STATEMENTS 10 HOUSE, EVENTS & HERITAGE 12 FINANCE

VISION MISSION To be a vibrant and progressive club, To provide members and guests an recognised for our strong sense of values and outstanding golfing experience and industry unique Kooyonga experience leading facilities and services 34 STATEMENT OF FINANCIAL POSITION 48 AUDIT REPORT 35 STATEMENT OF CHANGES IN EQUITY 50 FIVE YEAR SUMMARY 36 STATEMENT OF CASH FLOWS 51 KOOYONGA FOUNDATION REPORT 37 NOTES OF THE ACCOUNTS 47 STATEMENT BY THE COMMITTEE

Annual Report of the Committee Office Bearers and Committee DR KEN RUSSELL MR TERRY ANDERSON MR JOHN GARRETT CAPTAIN VICE-CAPTAIN PRESIDENT Attended 11 out of 11 GC meetings Attended 11 out of 11 GC meetings Not required to attend Committee meetings GC (Chair), LMN LMN GC (Deputy), C&W (Chair), FAM MR HARRY MOORE MRS DEBBIE ALEXANDER MR SAM ATKINS VICE-PRESIDENT COMMITTEE COMMITTEE Not required to attend Committee meetings Attended 10 out of 11 GC meetings Attended 7 out of 11 GC meetings LMN FAM, HE&H HE&H (Chair), C&W MS HELEN EGAR MR CRAWFORD GILES DR ANGAS HAINS COMMITTEE COMMITTEE COMMITTEE Attended 11 out of 11 GC meetings Attended 11 out of 11 GC meetings Attended 10 out of 11 GC meetings M, HE&H FAM (Chair), HE&H M (Chair), C&W MR GEOFF KAY MR GARY O’LOUGHLIN DR LYNN STEWART COMMITTEE COMMITTEE COMMITTEE* Attended 8 out of 9 GC meetings FAM, C&W Attended 10 out of 11 GC meetings Attended 6 out of 6 GC meetings C&W, M FAM, M *Casual vacancy from Sept 2018. Retiring Committee members - Tony Timmins attended 2 out of 2 meetings and Tim Sennett attended 3 out of 5 meetings. Sub Committees: GC - General Committee. FAM - Finance, Audit & Membership. C&W - Course & Water. M - Match. HE&H - House, Events & Heritage. LMN - Life Membership Nominations. Annual Report 2018/19 Page 2

Annual Report of the Committee Captain’s Report Iam pleased to provide my builder is appointed to commence construction on or around overview of the events of the 1st of September 2019. Enhancements to the plan as our last financial year. My well as some unforseen engineering obstacles have increased time involved as the Captain the building costs from those I presented at last year’s AGM, of our Club has flown by and however Committee believe the additional expense is in the best it only seems like yesterday interest of the membership. that I attempted to play a An enormous workload has been placed on Brett Lewis (GM) drive off the first tee with and Crawford Giles (Chair FAM) in the development of the the hickory stick golf club, as project and on your behalf, I thank them for their efforts. I do tradition dictates. hope you will appreciate the Clubhouse Masterplan when I I have enjoyed every minute of present it at the AGM. It is one of our Strategic Plan objectives my Captaincy and the privilege to enhance friendlier and more enjoyable usage of the premises of being at the helm of our both on and off the golf course. great golf club. To have some influence in the stability and The LEP, as I stated earlier, is all but complete and Kooyonga management at Kooyonga, albeit for a short time, was indeed a now boasts a ‘modern day’ feel to the golf course as many great honour and I sincerely thank members for giving me the guests and visitors tell us. I have related these messages to you opportunity and helping me along the way. I feel we have our in many previous newsletters. The continued policy of replacing structure for governance well set up, and the previous six years one green a year is now deeply entrenched in our protocol. As as a Committee person and Vice Captain has been essential to with the 17th green, which in July will be redeveloped, we will enable me to carry out the Captain’s role for the last two years. take the opportunity to make any beneficial enhancements These years may have gone a little slower for my wife Margaret to the surrounds of the green. The egress from the 17th however, and I thank her for her support and encouragement is somewhat dangerous and this will be addressed in the throughout the journey. Most of all I thank her for allowing me redevelopment of that green. On the southern side of the green to spend the considerable amount of time which has been we will extend and increase the dune while re-working the required to carry out this role. path to the 18th tee. Many options of design were considered Within the Annual Report you will find further details from each and we believe this to be the best while keeping the pond and of the Committee Chairs about the various aspects of those enhancing the surrounds. Committees, however I would like to comment on a few matters. Finance & Membership Last year I said that within the Kooyonga Strategic Plan we have We have seen improvement in our financial performance over concentrated on two major areas of concern and they have the last 12 months with an operating surplus of $225K recorded been the ‘Landscape Enhancement Plan’ and the ‘Clubhouse compared to a loss of $101K last year. We still have some work Masterplan’. This year we have placed more emphasis on the to do to reach our target of a breakeven result prior to entrance Clubhouse Masterplan as we have completed much of the LEP. fees, but as is detailed within the finance report prepared by At the AGM I will be presenting the final plans and vision for Crawford Giles, we have budgeted to achieve this goal in the the clubhouse upgrade. It has taken a full year of finalisation year ahead. to be able to complete the best and most practical scenario Optimum membership numbers and membership subscriptions and I trust you will be pleased with the result. Our redeveloped remain a constant challenge. Our strategy of reducing Category clubhouse will provide members with a new and updated One members by 50 through attrition, has not really produced women’s locker room, more buggy storage areas and indeed an enormous benefit in terms of reducing the yearly rounds of more general storage areas, a more efficient and modern golf played on our course. We all seem to be playing more golf, suite of offices, an upgraded members’ bar, bistro and dining as opposed to just 10 years ago. Our aim is to protect the course facilities and a larger function space on our northern perimeter while keeping adequate access for members. To achieve this, we encompassing more balcony areas while maintaining the ability feel the maximum number of rounds playable should be below to divide the area for those intimate occasions that can now 45,000 per year, however increased playing habits are seriously occur in the popular sitting room. impacting on any planning to achieve this. Committee’s dilemma This is a significant project and the largest single investment is that we have to be mindful of reducing membership numbers in infrastructure in the Club’s history, so your Committee has further because of the impact this would have on carefully reviewed and debated the feasibility of each proposed membership fees. area of the development before deciding on the final plan. Following the AGM the plans and 3D perspectives will be displayed in the Clubhouse and on the website for a two month period in line with the constitution requirements before a Annual Report 2018/19 Page 3

Annual Report of the Committee Captain’s Report (cont) Golf Shop and Services to provide better functions and seminars and not impact on our With the commissioning of the Golf Academy we now offer members. A new wine room will be an added bonus in the new a complete golfing service to all our members who wish to clubhouse renovations and I, like many of you will enjoy this improve their golf. The addition of Dan Blackwell to the team opportunity to peruse and purchase quality wines on offer. has been a huge bonus to the variety of coaches and lesson Sam Atkins heads up the House Committee and his experience access for members. Our coaches John Corbett, Susie Mathews, in the wine and hospitality industry has been a great help. Duard Nel and now Dan Blackwell are very busy and they are a Match Committee great asset to Kooyonga, allowing us to fully utilise this teaching The 2018/19 golf year was a busy one with many individual, facility. I am sure you will agree with me, as many Kooyonga team and interclub events played out, enhancing the members can attest to, that our coaching team are certainly at camaraderie and friendly competitiveness we boast about at the forefront of modern coaching techniques. our Club. Well done to all those who competed throughout the As we head into the fifth year of managing the golf shop and year and especially to those who were presented with a medal services, you can expect to see a greater emphasis focussed or trophy during 2018/19. on the retail side of the operation. We are learning more The Kooyonga pennant teams have developed under the about the golf club equipment, apparel and golfing accessory tutelage of manager Tim Sennett, Jill Trenorden and their team needs of our members and we are trying to ensure our stock of volunteers. Tim resigned due to business constraints after reflects your needs. We aim to be competitive in what is a last season and now that David Fraterman has replaced him, very competitive retail golfing world and with this in mind, we we look forward to his management in this area. Strong teams trust that we are your first choice for your golfing purchases. A have been assembled for this season and we wish all levels a structural management change in the Golf Shop is proving to successful year. be very successful with Duard Nel now at the helm and being Interstate visits and subsequent hospitality provided and ably assisted by Deb Hocking and the team. accepted are important opportunities for maintaining our We have committed to floodlights for the practice fairway to relationship with our reciprocal clubs. I thank all members who assist members who can’t get to practice during daylight hours. have participated in the many exchanges this year. We are still fine tuning the lighting design as I write this report This year we received the disappointing news from Kingston to ensure the best possible lighting levels are achieved. We Heath Golf Club that their description of reciprocity has have spent time in planning and council approval this year to changed and now our members will be required to pay member ensure it is done in a tasteful and ecologically friendly way. We introduced fees when playing their course. This will now be the are also pleased to announce that the Kooyonga Foundation case for their members when visiting Kooyonga. Committee are will be financially assisting us in this project as it did for the Golf saddened by this policy and are very keen for it not to become a Academy. widespread practice amongst our other reciprocals clubs. Susie Matthews has been a great strength in the area of Unfortunately speed of play continues to be an issue at membership and golf operations. She has the ability to turn Kooyonga. The simplest method of preventing slow play can her hand to all tasks and management. Thank you Susie on only be achieved by the standards set by each player. Play ready behalf of all members for your efforts in the previous year and golf, be only one shot behind the group in front and if you drop well done to you and your team for a wide and varied range of behind then it is your responsibility to catch up. After my 8 years services. Finally I offer my sincere thanks to Head Professional of attempting to improve the speed of play I feel the above John Corbett for developing Kooyonga’s pathway to a principles are the only answer to this dilemma. Committee successful golf coaching experience for us all. can only do so much and it is up to the individual golfer to Clubhouse Services maintain his or her standards of care for other members. The Under the guidance of Anna Fontaine we are building our Golf Shop staff have been attempting to monitor and marshal reputation as a quality destination for food and beverage. To the field and I trust that members will respect their requests if this end, quality menus, table service and a greater range of bar approached at any time. snacks are now offered along with an extensive wine list and My thanks also extended to Angas Hains for his stewardship of beer offerings. the Match Sub Committee this year. We will soon start the building process for the Clubhouse Masterplan and this will address a number of deficiencies in the current design and allow us to provide a better service and amenities to our members. One major upgrade will be the ability Annual Report 2018/19 Page 4

Annual Report of the Committee Captain’s Report (cont) Golf Course improvements. He has been especially helpful in development It was a very challenging year with the least amount of rain advice regarding the final product when we decided to address on the course for many years. Richard James, our Course the 17th green. Superintendent, has been marvellous over this trying time and I We have engaged an irrigation consultant, Don Cameron thank he, Assistant Adam Fry and the course maintenance team to work closely with Richard James on a masterplan for our for diligently maintaining the course. Constantly we hear from irrigation system which will likely be necessary within the next visitors how impressed they are with the standard of our course. five to ten years. We also engaged Walter Brooke last year to This was again attested to by senior committee representation develop a masterplan to upgrade, expand and improve the from Kingston Heath, Royal Melbourne and Metropolitan when maintenance building and surrounding area. Currently this is playing here earlier this year. an inefficient facility and it will need to be upgraded over time, I trust all members appreciate the course report from Richard and in doing so will allow us greater management efficiencies James that previously was only seen by Committee but is now and compliance with modern standards of operation. Both available on the website delivered through the e-news. The masterplans are progressing well and I hope to update insight into course projects, maintenance and other course members at the Annual General Meeting. issues I find very educational. I sincerely thank Terry Anderson for his management of the We have all been impressed with the remake of the 15th green Course Committee and his dedication to develop a course complex and I make a special mention of our ability to manage quality and maintenance policy along with procedural and carry out such major earthworks internally while still documentation. This should stand the test of time and was maintaining the course. The ground staff team should be well developed with the wholehearted support of our Course pleased with their efforts in this regard. Superintendent. I thank Course Architect Neil Crafter for developing a user- We are still attempting to obtain the use of the School Oval friendlier plan for the 15th green and surrounds. I would whether by lease or purchase. We feel this would help us with also like to acknowledge the help and professionalism that long-term security for future development of the course and he has provided both in direction and detail to any course the practice facility. However this project is not proving to be an easy one and government bureaucracy is proving difficult.

Annual Report of the Committee Captain’s Report (cont) Management rules changes. At the AGM this year Gary O’Loughlin finishes Accolades must go to Brett Lewis, General Manager and his eight-year term on Committee and I commend him on his his team for his wise management and running of our Club. contribution. Helen Egar also is not continuing and she will Amanda Sewell has been a great back up to Brett along with be sadly missed as her contribution has been outstanding her production of the e-news, various communication forums and supportive. On behalf of Committee and especially on a and development of the new website which was launched in personal level, thank you both for your involvement. December 2018. After the constitutional change at last year’s AGM the current Andrew McLeod and all the other office staff have Committee has appointed David Fraterman to the position contributed to the very efficient management at Kooyonga. of Committee elected placement on the General Committee. Brett, myself and indeed the Kooyonga Golf Club have been I wish him well in this position and look forward to his vast well served by the financial advice given by Chair of Finance experience being an asset to the Club. and Membership Committee, Crawford Giles. I am sure from Special Mentions his FAM report, within this Annual Report, you will agree that I take this opportunity to acknowledge David Rowe and strong financial stewardship and due diligence is being done Jane Crafter who were offered Honorary Membership with our finances. through the year in light of their notable commitment and As Captain I have been fortunate to be supported by a ambassadorship to our Club and the golf community. I would dedicated and sincerely helpful General Committee that has also like to congratulate all members who have reached a made my job all the easier to perform. I was disappointed milestone year of membership at Kooyonga. Specifically to to lose the wise counsel of Tim Sennett this year as I John Haigh, Ray Michell, David Rowe and Don Rutherford stated earlier. Lynn Stewart has been an excellent casual who each reached 70 years and who I thank for showing such replacement on Committee as we dealt with the recent golf loyalty and commitment to our Club. Honorary Members During the year Honorary Membership was offered to Jane Crafter and David Rowe in recognition of their distinguished service provided to our Club and community. Jane Crafter was admitted as an Honorary Member of Kooyonga given her highly successful career as an Amateur and Professional Golfer and now sports commentator and for her ongoing passion and ambassadorship for Kooyonga which was so publicly displayed during the hosting of the Women’s Australian Open at Kooyonga in February 2018. David Rowe was admitted as an Honorary Member of Kooyonga given his service to the Club for over 70+ years of membership, including as Captain, President and Committee member. David has been a very active Club member, both as an individual and as a strong supporter of Kooyonga’s social and pennant events. Congratulations Jane & David.

Annual Report of the Committee Captain’s Report (cont) The Future In June 2018 we held our ‘New Member & Special Milestone We along with all other golf clubs are in unchartered Members’ evening where we welcome new members to the club water as younger people are more time poor and and officially recognise those who have reached a milestone year older members play more than their fathers. Golf of membership. clubs can be seen as a men’s club and possibly Congratulations to all who reached 50 and 60 years of unfriendly to some groups. This is a perception that membership (those in attendance on the evening pictured top). at Kooyonga we want to dispel especially if our Club Special acknowledgement goes to those who have reached 70 is to flourish into the future. years of membership in recognition of such dedication and loyalty Members are playing many more rounds of golf than to the Club. Pictured left to right: John Haigh, Ray Michell, David in years gone by and this means that the Club can’t Rowe and Don Rutherford (accepted by son, Grant on his behalf). support as many playing members whilst allowing the same freedom of access to the course. The Strategic Plan states that it is our aim “To be a vibrant and progressive club, recognised for our strong sense of values and unique Kooyonga experience”. Our Mission is “To provide members and guests an outstanding golfing experience and industry-leading facilities and services”. Over the last few years it has been our aim to ‘walk the walk’ and not just ‘talk the talk’. We hope that you agree as we have provided a clubhouse environment which now boasts of remarkable hospitality service and standards of food and drinks, a golf course with an LEP direction copied by and aligned to some of the best courses in the Victorian sand belt, a state-of-the-art Golf Academy with enormously experienced and caring teaching professionals, a Golf Shop that constantly receives accolades from visitors as to its friendliness and level of service, and lastly a governance that is fair and equal and supported by amazing office and professional staff. It is our aim to go one step further and at the AGM I will be outlining a Clubhouse Masterplan to bring our facilities up to the same degree that befits the service enjoyed. I trust you find the challenges of the future as exciting as I do and can see the need for us to remain at the forefront of the golfing and hospitality industry to ensure Kooyonga’s status and long-term success and survival. I love being a member of our great golf club I hope you do also. Ken Russell Captain Annual Report 2018/19 Page 7

Annual Report of the Committee Course Overall, the course has stood up well Exacerbating the problem is that we are Vegetation to the difficult and challenging now seeing more and more rounds per year Tree maintenance has continued conditions experienced throughout the being played on our course and in some throughout the year with all trees year. We experienced very dry and hot areas, the resultant wear and tear is quite inspected by an Aborist marked with an conditions with only 293 mm of rain, obvious. aluminium tag to make identification easier over 100mm under average. Renovations for inspections and maintenance. As well Greens benefited from improved density Major course renovations were carried as tagging, all trees have been GPS located and coverage which enabled us to present out in December with deep solid tyning which will allow them to be mapped that greens that were generally in good health followed by hollow tyning and topdressing will eventually form an electronic mapping and were receptive and fast. We had to of the bentgrass greens and collars. plan of all of the trees on our property so use more bore water on the course than Gypsum, wetting agents and blended that we can better manage maintenance normal and this combined with the lack of fertilisers were added. To boost plant and risk. rainfall, meant increased levels of salinity health, a fungicide mix was added to the We are in the process of developing a which manifested itself in isolated areas on rootzone. Following renovations, further course vegetation policy which will identify a number of greens looking worse for wear heavy dustings of sand were applied and our preferred species, suitable varieties for towards the end of the irrigation period. the greens were mown about four days each area on the course and a succession Recent rains have highlighted that there after this topdressing with the mowing plan for our more mature trees. is no substitute for good rainfall which height raised slightly for a week or two Future projects has returned soils to more normal PH and before reverting to normal. Planning is continuing for the eventual sodium levels and the greens presented The fairway renovations removed thatch replacement of our irrigation system have been outstanding. to a depth of 20mm and topdressing was to ensure that when the time comes While the course clearly suffered (as did applied to areas prone to scalping. to replace it, we will be ready to go. all courses in south-eastern Australia), 15th green Similarly, planning is continuing for the we were still able to maintain it to a The major course project for the year was redevelopment of the maintenance facility high standard, a fact commented on by the re-construction of the 15th green to ensure we have a modern and efficient interstate visitors. complex, including the bunkers following complex. an approved design by Course Architect, The next major course work will be the Neil Crafter. The new green and re-design replacement of the 17th green and the of the greenside bunkers has been well construction of a safer path from the green received by members and in particular, to the 18th tee. Detailed plans have been the less penal run-offs has made the hole approved by Committee and are available fairer although it remains a very tough test on the website. of golf! Communication New irrigation was added with a 3-row A number of communiques have been sprinkler system installed to ensure released throughout the year as part of watering is properly controlled. our efforts to explain what is happening Because we are now able to use more out on the course. A Q&A on frequently pin positions, wear and tear on the green asked questions was issued and a should be greatly reduced. decision was taken to publish the Course Superintendent’s report on the website which has been well received by members. FUEL USED GREENS BUNKERS 21,750 Time spent mowing and 35 Litres of fuel used on rolling greens course machinery HOURS PER WEEK ON AVERAGE 55 OVER LAST 12 MONTHS Time spent on bunker HOURS PER WEEK maintenance ON AVERAGE Annual Report 2018/19 Page 8

Annual Report of the Committee Course Course equipment Staff attended most Course Committee Major capital items acquired this year I would like to record my appreciation meetings and other members of included a wide area rough mower of the work done by Richard James, his the Course Sub Committee for their which has improved our rough mowing assistant, Adam Fry and the rest of the invaluable contributions and robust efficiency and improved the appearance course and grounds staff for the way they discussions! of the rough. We also bought in-ground present the course week in and week out Terry Anderson moisture sensing equipment to allow in often very difficult circumstances. Chair - Course & Water Infrastructure us to begin to track soil moisture levels I would also like to acknowledge the with the information provided to assist in support of Captain, Ken Russell who programming nightly irrigation cycles. PLANTING IRRIGATION RAINFALL 427 250ML 293MM Native trees and shrubs Irrigation used planted on course on course over the Lowest recorded rainfall IN 2018/19 last 12 months in last decade 3%HIGHER THAN AVERAGE 5 YEAR AVERAGE 388MM/YEAR Annual Report 2018/19 Page 9

Annual Report of the Committee House, Events & Heritage Iam delighted to present to get involved and get to know other members in a social my second report as environment. Two of the standout functions for the year Chair of House, Events and were the Members’ Dinner with a Billy Joel theme and the Heritage Committee and sold out Italian Night on the 1st tee under the stars, a new start by congratulating initiative that was a huge success with fantastic weather, and thanking the entire wonderful service and authentic Italian cuisine prepared by hospitality team lead guest chef Salvatore Pepe. A special thanks to Di and Tania by Anna Fontaine for for promoting and organizing this event with many special the outstanding food touches to add to the member experience. and beverage service at Other informal occasions that were well supported were our Kooyonga. The quality two afternoons of Live Music with Tapas on the balcony, a and consistency of handful of Friday night twilight events with dinner to follow the clubhouse service and the weekly 9 hole Sunset Golf Series during daylight contributes greatly to your savings that coincided with our opening of the bistro experience as a member for dinner on Thursday nights. We averaged close to 50 and I for one proudly bring family and friends to the meals each week and those attending spoke highly of the Club to showcase our wonderful course and clubhouse atmosphere and enjoyment of dining on the balcony as the facilities pre and post golf. sun sets in the evening. We will continue to schedule these The very engaging and ‘service’ focused front of house team events into our social calendar and encourage members to have set a new benchmark for our Club and this has reflected invite family and friends to attend in a relaxed environment. in an 8% growth in food and beverage income from day to Committee has spent considerable time over the last 12 day member patronage of our hospitality facilities over the months finalising plans for the major clubhouse upgrade last 12 months. While the service levels were a key driver to this growth, of similar importance was the quality and consistency of our food offerings. To that end, I must congratulate our kitchen team who have worked tirelessly behind the scenes to provide a wide range of daily menu items as well as special menus for member functions. Unfortunately, we have recently lost the services of Head Chef, Peter Milosovic, who has taken on a similar role at the Naval, Military and Airforce Club. While disappointed with Peter’s departure, we are extremely fortunate to employ an experienced team of well credentialled chefs to maintain our quality food service in the absence of a Head Chef. So much so, that we have deferred the appointment of a Head Chef until the clubhouse renovations are closer to completion. We thank members who attended our regular social events Italian Dinner with Friends during the year, they are a great way to build camaraderie and spirit within the Club. I really encourage new members F&B ORDERS REVENUE GUEST SPEND F&B items ordered over $1.867M $81 12 months in Members’ Bar In food & beverage Spend per guest revenue over 12 months at functions 127,500 8% GROWTH COMPARED 1% DECLINE FROM AVERAGE 350/DAY TO LAST YEAR LAST YEAR SATURDAY BUSIEST TRADING Annual Report 2018/19 Page 10

Annual Report of the Committee House, Events & Heritage project following the initial presentation of plans and rationale A key project for the House, Events and Heritage Committee at last year’s AGM and subsequent member information session in the coming year will be to work with interior designers to in August 2018. Engineering and architectural advice early showcase Club honour boards, trophies, historical photos and this year recommended we rebuild rather than renovate at memorabilia throughout the new clubhouse spaces. This will the northern end due to cost, ceiling height constraints and be a significant undertaking and will also assist in preparations functional issues with lack of storage as well as a Committee for a new Club History Book to be released to coincide with room. Following a review of the original masterplan objectives the Club’s Centenary celebrations in 2023. Any members that were established in 2017 as part of the strategic plan, interested in being involved in the lead up to our Centenary are Committee determined that a larger facility at the northern end encouraged to contact the Club. would provide greater flexibility and opportunities to enhance In terms of capital works completed around the clubhouse over the Members’ Bar and Rymill room with the addition of a wine the last 12 months, the main project and expenditure was the room and more exclusive and intimate member spaces to add installation of additional solar panels on the clubhouse roof value to your membership experience. These proposed changes to increase our capacity from 30kW to 100kW. We expect a to the plan will require additional investment, however will payback of 4 to 5 years for this investment. We also replaced maximise functionality of the clubhouse for current and future our kitchen exhaust fan motor on the roof, dishwasher in the members, including opportunities to introduce family friendly kitchen, glasswasher in the Members’ Bar and some fridges in events at the northern end with relaxed dress code that do not the kitchen that were all beyond economical repair. We installed compromise our traditional member spaces. blockout blinds inside the western windows of the Members’ We look forward to presenting the updated plan and Bar, bistro and Rymill room to reduce the impact of the sun in perspective images at the Annual General Meeting for member late afternoons. We had planned to replace our PA system but information and ideally commencing works prior to September have decided to include this project within the scope of works 2019 to ensure works are completed well in advance of our for the clubhouse upgrade to ensure the system is designed to hosting of the Women’s Australian Open in February 2021. meet the needs of the new clubhouse layout. There are still a few modules of the Club’s IT system that will be rolled out in the coming months, including a dining module and grab & go module that will allow members to order food and beverage items or book a table for lunch from a new mobile phone app that will be launched with greater functionality. In closing, I wish to express my sincere thanks and appreciation to my fellow Committee members for their contributions and efforts over the last year as we have continued to work on ways to enhance the membership experience at Kooyonga. I encourage members to utilise the high-quality hospitality services on offer at the Club. Sam Atkins Chair - House, Events & Heritage Committee Members’ Dinner - Billy Joel Tribute ATTENDANCE COFFEE FOOD SALES 20% INCREASE IN FUNCTIONS 25% 15% 8% INCREASE IN GUESTS of beverage orders of all food sales were were coffee items a la carte lunch dining 11,393 ONLY MAKES UP 15% OF REVENUE SALES UP 20% OVER LAST Guests attended 12 MONTHS functions (236 functions)

Annual Report of the Committee Finance The operating result for The below table and graph provide a quick reference to the 2018/19 financial explain the reasons for the improved financial performance year was an operating compared to last year, however I encourage members to read surplus of $198K, an the Financial Statements included within this Annual Report improvement of $183K over for more detailed information. last year’s result and $8K ahead of the budget. 2017/18 Operating Surplus $15,312 On a cash basis we achieved Add: Increase in subscription fees $147,163 a cash operating surplus of Add: Increase in entrance fees $115,930 $1.062M for the year prior Less: Reduction in Corporate Golf $(58,200) to our annual contribution Other (refer below) $(21,653)* towards hosting the Women’s Australian Open and $40K 2018/19 Operating Surplus $198,552 received from the Kooyonga *refer chart below Foundation as their final payment for the capital cost of the Golf Academy building. REVENUE SURPLUS CASH PROFIT Total revenue Operating surplus $1.062M in 2018/19 $198K Cash profit in $6.9M 2018/19 FORECAST GROWTH 6.25% GROWTH COMPARED TO $298K IN 2019/20 FORECAST GROWTH OF 3.5% TO TO LAST YEAR $1.1M IN 2019/20 Annual Report 2018/19 Page 12

Annual Report of the Committee Finance As highlighted in the graph, the combined growth in higher last year to run our irrigation in the lead up to the membership subscription fees and new member entrance fees Women’s Australian Open. These savings were offset by were the catalyst for the improved financial result. Members $15K increases in chemicals, turf and sundry expenses to would recall from previous correspondence that Committee maintain the course. imposed a 6% fee increase for the 2018/19 year to help offset • House operating expenses grew by $22K compared to last a planned reduction of Category 1 members and also work year due to $15K in additional depreciation costs and $20K towards our objective of achieving a break-even result prior to in higher electricity costs. These increases were offset by entrance fees, both of which have been achieved in part. $13K in other cost savings. We have installed additional The below commentary provides a brief explanation of our solar panels as well as signed a more competitive electricity trading performance compared to last year: contract which we expect will reduce the electricity costs • Profitability from house operations slightly improved moving forward. • Administration expenses increased by $20K or 2% on last year’s result by $2K. Food and beverage income compared to last year primarily due to wage growth grew substantially by $148K or 10% over the last 12 including payroll tax for the entire club, which was offset months thanks to increased utilization of the clubhouse by costs savings in printing, postage, marketing and other by members and strong growth in function income, in general administration costs. particular weddings and seminars. Despite this growth in While this year’s operating result fell $92K short of our strategic hospitality income, the cost of wages to provide the high objective of a break-even result prior to entrance fees, we have service levels that members have come to expect and taken a step in the right direction by shrinking the deficit by appreciate in the members’ lounge has largely offset the $67K compared to last year. additional income. 2019/20 budget • Profitability from our golf shop retail operations has The budget for 2019/20 results in an operating surplus of $40K declined by $68K compared to last year, primarily due to a prior to new member entrance fees. The budget meets our $58K decline in corporate golf with four fewer events and strategic objective of achieving a break-even result for the first 600 less guests as we carefully managed the number of time and is a significant improvement of $132K on the operating events held at Kooyonga, as well as $25K in wage increases result for the 2018/19 financial year. to provide the level of service required in the golf shop, golf It is expected that the total surplus for the 2019/20 year will academy and golf operations as a whole. Retail sales in be $298K after accounting for new member entrance fees. On the shop were $60K or 10% less than last year, however it a cash basis we expect to achieve a cash operating surplus of must be noted that last year saw 10% growth as a result of $1.104 Million prior to capital expenditure. strong sales during the Women’s Australian Open and sales The 2019/20 budget was developed with a view of continuing have normalised this year, more in line with the previous to provide outstanding facilities and services to members and 2017 financial year. Utilization of the golf academy has guests while completing the major clubhouse redevelopment. grown substantially over the last 12 months with net tuition Overall, our income will decline by 2% in 2019/20 due to the income doubling to $52.5K. The acquisition of Daniel impacts that the clubhouse project will have on our function Blackwell and restructure of John Corbett’s time during the activity which is expected to reduce house profits by $95K. The year to focus on tuition has helped drive this growth. Visitor 5% subscription increase will help offset this loss of income green fees grew by $22K or 10% compared to last year together with new income from the proposed Telstra tower (the where we implemented course access restrictions around installation of which was overwhelmingly supported by members the Women’s Australian Open. in the recent survey), member instalment surcharge (which • Course operating expenses declined by $16K compared to last year as a result of minor savings in depreciation, wage costs and electricity costs which were slightly CAPEX PAYROLL OVERHEADS Capital expenditure 47.75% 1% Payroll costs as Increase in overhead $557.5K % of revenue costs in 2018/19 IN 2018/19 0.5% IMPROVEMENT OVER LAST YEAR GROWN 5% OVER 5 YEARS IN LINE WITH KEY RECIPROCAL CLUBS Annual Report 2018/19 Page 13

Annual Report of the Committee Finance recovers the funding and administrative costs) and additional the pipeline at 30 June 2019, who take up the offer to join as visitor green fees as we continue to increase visitor green it comes up via the waiting list. This provides an opportunity to fee rates to better reflect the value of our golf experience at nominate friends or family prior to 30 June to avail themselves Kooyonga. We have restricted overhead expense increases to of this considerable saving. just 1% in the budget to ensure we can achieve our objective of With current natural attrition of approximately 40-50 members a break-even result prior to entrance fees. this change will increase the Club’s ability to fund future I can assure members that our key operating expenses capital works to the tune of approximately $170-200k per continue to be tightly managed to minimise growth in member annum which Committee feels will spread the burden of capital subscription fees without compromising our agreed strategic investment more equitably across the membership. direction that seeks to “maintain a premier golf experience while We have been able to fill any vacancies in the membership expanding member services and facilities to better serve the categories well in recent times and expect this to continue with needs of our current and future members”. To provide some a strong focus on premium facilities and service, both on course context, our total operating expenses for administration, course and off. and clubhouse have increased by a combined 6% over the past Cashflow five years. Our bank balance of $2.972M at 31 March 2019 finished $83K Your Committee is fully aware and cognisant of our reliance ahead of our budget expectations as a result of additional new on membership subscription fees to generate the necessary member entrance fees and delay in capital projects forecast income to offset the annual operating costs to run the Club. for completion in the 2018/19 year. For the full year the club Committee will continue to seek out opportunities to diversify undertook $557.5K in capital expenditure which was funded our income through non-traditional methods that do not impact from the cash operating surplus of $1.062M for the year. Major your experience as a member but provide a sustainable and projects included a solar upgrade on the roof, redevelopment of reliable return on investment. While challenging to identify the the 15th green and architectural and engineer consultancy work appropriate revenue pipeline, Committee are committed to on the clubhouse project. The balance of capital expenditure put less pressure on subscription fee growth in future and we was for replacement assets to operate the Club. have taken important steps over the past few years to bring the 10-year cashflow finances of the Club to a break even point prior to entrance fees The Committee continues to maintain a 10-year cashflow to provide some flexibility in this regard. forecast to help project cash balances in the coming years Post the adoption of the budget, Committee has continued based on planned capital expenditure and major capital projects its review of the membership structure and has resolved to yet to be prioritised. return the entrance fee to 3 times the annual subscription fees. I will present an updated 10-year cashflow forecast at the The entrance fee was changed from this multiple of Category Annual General Meeting as part of a presentation on the One subscriptions in 2012 when our long standing waiting Clubhouse Project to explain the financial impact of this project list significantly reduced to a flat $8,000 where it remained once we receive an updated cost report from our Quantity unchanged for a period of 6 years until a small $500 increase Surveyor on the final plan currently being prepared for tender. to $8,500 in 2017. A strong and consistent pipeline of new While the clubhouse project is a significant investment requiring members combined with the increased use of the course by a short term debt facility and a few years of tight control over members and the financial commitment by existing members to capital expenditure to extinguish the debt, Committee also have the continued investment in the facilities of the Club all combine one eye on the future and have commissioned masterplans for to justify the return of the entrance fees (which represent a the replacement of our irrigation system and upgrade of our contribution to the Club’s assets) back to the multiple of three maintenance facility in years to come. We are yet to finalise times Category 1 Subscriptions. master planning or commit to either project, but Committee are To coincide with this change in By-Law that will come into effect better placed with valuable information to develop the roadmap from 1 July 2019, Committee has resolved to provide new for the future. members who wish to pay their entrance fee via instalments one I take this opportunity to thank my fellow Committee members additional year so they can now pay the entrance fee over five for their valued assistance and contributions over the last 12 annual instalments (4 years from the date of joining the Club). months on the Finance, Audit and Membership Committee. The Committee also resolved to grandfather the current We have held many long meetings and separate strategic Category 1 upgrade fee of $1,700 for existing Category 2 discussions on key financial and membership topics, all of members when next provided the opportunity to transfer to which are focused on improving Kooyonga and the value of your Category 1 as a position becomes available. If the initial offer membership. is not taken up, they will be required to pay the upgrade fee of Crawford Giles 20% of the entrance fee applicable at the time of any future Chair – Finance, Audit & Membership Committee offer. Further, Committee has resolved to hold the entrance fee at the $8,500 level for all applications for membership in Annual Report 2018/19 Page 14

Annual Report of the Committee Membership Playing Male Female 2017/18 Male Female 2018/19 Category 4 4 Total 4 4 Total 8 8 Life 0 1 1 2 519 18 1 495 23 3 Honorary Membership 105 211 537 127 196 518 Category One 174 42 316 188 46 323 Category Two 5 0 216 5 0 234 Absent 21 2 5 20 2 5 Clergy 102 72 23 114 72 22 Country 23 4 174 21 4 186 Honorary Social 33 9 27 19 6 25 Interstate 7 4 42 9 7 25 Junior 2 0 11 0 1 16 Junior Cadet 4 0 2 4 1 1 Junior Country 33 4 4 32 4 5 Junior Ambassador 1 0 37 1 0 36 Overseas 12 1 1 10 0 1 Reciprocal 1 0 13 1 0 10 Senior 19 7 1 16 11 1 Social 23 2 26 22 2 27 Temporary 17 0 25 30 0 24 Under 30 (21-25) 2 0 17 1 0 30 Under 30 (26-30) 0 1 2 0 1 1 Veteran 1,107 382 1 1,120 382 1 Veteran Associate 1,489 1,502 Our total membership numbers increased over the last aimed at improving access to the course and speed of play for 12 months from 1489 to 1502, although the total Category 1 members, in particular on Saturdays. To that end, number of playing members reduced by 15. We had 72 the average field size on a Saturday reduced by 3% from 174 playing members either resign or transfer to a non-playing to 169 in the 2018 calendar year, a sign that the reduction in category in 2018/19, an attrition rate of 7% in line with last Category 1 membership numbers is having a positive effect. financial year. However, despite reaching our planned reduction of Category 1 To offset this reduction, we inducted 57 new playing members members from 575 to 525 over the last 2-3 years, the number to the Club in 2018/19 compared to 19 in the 2017/18 year. of rounds of golf at Kooyonga have grown 7.5% over that same It must be noted that the average number of new members period and totalled 49,500 in the 2018/19 membership year. inducted per year over the last 10 years is 51 and last year was 85% of all rounds at Kooyonga are played by members and well below this average following the Committee decision to analysis shows that the rounds growth has simply been driven reduce the number of Category 1 members and not replace by the average member playing more rounds of golf each week them with new Category 2 members from the waiting list. than in previous years. While increased use of the course by The quota for Category 1 was further reduced to a cap of 525 members provides greater membership value, Committee are members in 2018/19 to return our quota for this full playing mindful of the impacts of wear and tear on the course, slow play category to long term historical levels. As previously outlined, and growing difficulties for members to book their preferred this change, together with the removal of playing rights for tee time. Key reciprocal clubs are targeting annual rounds in the Category 2 members on a Saturday from 1 April 2020 is vicinity of 40,000 rounds and Committee are now Annual Report 2018/19 Page 15

Annual Report of the Committee Membership considering all opportunities to reduce our rounds of golf by WELCOME TO NEW MEMBERS at least 10%, which may require the reduction of a further 100 DURING 2018/19 playing members through natural attrition. This strategy would improve member comfort levels on the course and ensure we APRIL - Dr GL Balalis, Dr AW Begg, Mr AJ Bermingham, maintain our status as a premium golf club. The recent survey Mr DP Brown, Dr BJ Clapp, Mr M Coro, Mr J Elliott, sought member feedback on this issue and an initial review Ms M Gregg, Mr A Higginbottom OAM, Mr JB Kurenda, of results show 52% of members are prepared to pay at least Mr S Lovering, Mr J Masters, Mr DJ Mattner, Mr CJ McAssey, $100 in additional subscription fees above annual subscription Mr HA McLeay, Mr T Morphett, Mr G Ranaldo fee increases that offset inflationary growth to help support the MAY - Ms J Crafter (Honorary Member) further reduction in member playing numbers. JUNE - Mr T Kramer, Mrs LE Thomas However, before any further reduction in playing numbers, JULY - Miss MJ Anderson, Ms CM Birch, Mr BA Corso, Committee are undertaking a more comprehensive review of Dr JJP Dally, Mr JD Hatwell, Mr K Katdare, Dr AN Kuliwaba, the entire membership structure and are assessing daily rounds Dr D Mosler, Dr P Webb, Mr WJ Weidemann, MR SL Wingard analysis by gender, age, years of membership and category SEPTEMBER - Mr M Boyd of membership to better understand the change in playing OCTOBER - Mr AJ Monteduro patterns across the membership over the last 3 to 5 years. NOVEMBER - Miss PCL Christensen, Mr JB Gauvin, Committee will use this analysis to help guide future decisions Mr EJ Gauvin, Mr CM Pearson on our membership structure to ensure our membership DECEMBER - Mr DR Gallard, Mr J Gallard, Mr RG Jones, categories and fee percentages are equitable, represent Miss ML Miels, Ms D Parry, Mr J Sennett-Perez, value to current and prospective members and collectively Mr JL Sharpe, Mr D Tsiavlis, Mr F Vucic provide the appropriate level of income for the Club to remain FEBRUARY - Dr TJG Baillie, Mr N Fotinos, Mr JL Kane, financially strong. Mr J Rillotta, Mr S Williams Committee remain concerned with the decline in female MARCH- Mr D Gibbs, Mr L Steele, Mr BA Wise membership, with playing numbers reducing by a further 11 TEMPORARY - Mr S Alder, Mrs NL Bowler, Dr K Chan, over the last 12 months. The issue is not the loss of female Dr J Collum, Mrs JA Denton, Ms AE Doherty, Mrs LL Emmett, members by natural attrition, which is 5% and below industry Mr TA Emmett, Mr N Gatis, Mr CS Girardi, Mrs C Heusler, averages, it is our inability to attract new female members to Mr MD King, Ms J McKay, Mr T Minge, Mr H Nguyen, join the Club. Committee has held two forums with a number Miss C Oxenham, Dr HL Philpott, Dr CM Philpott, of women over the last 12 months to better understand the Mr GT Robertson, Ms S Russell, Mr PD Schwerdt, Mr A Shea, barriers for women joining Kooyonga and have introduced Ms SA Yuncken, Mr SP Zybek changes to our 6 month “Tee off with Friends” temporary membership and 12 month “Pathway to Membership” to help improve our success at converting these temporary members to join the Club as a playing member. While we have increased conversion over recent months, the temporary membership options on their own will not stimulate sufficient interest to arrest the decline in women each year. Committee are considering a new category of membership targeted at women as a “special measure” to provide a further pathway over a longer period of 2-3 years to help women transition more comfortably into our traditional membership model. AVERAGE AGE NEW MEMBERS GENDER RATIO 59Average age of 23% 70Over the age of 46%Male / 26%Female current playing of our current playing member members joined 40Under the age of Kooyonga in the Average age of new last 5 years 16% Male / 8% Female 44members admitted to the Club in 2018/19 Annual Report 2018/19 Page 16

Annual Report of the Committee Membership Kooyonga is not unique in experiencing a decline in female General Committee. I feel we are all well served in this role in participation and difficulties attracting new women members. the knowledge that all new members are made aware of the This is an industry wide concern and Golf Australia have standards and privileges of membership of our great Club prior recently launched “Vision 2025: The future of women and to their joining. girls in golf” which sets out how golf in Australia can become As members would be aware, Committee has recently a sport where women and girls are inspired to participate, conducted a comprehensive member survey to better welcomed and nurtured throughout, and developed to achieve understand the views of Kooyonga members. I take this their goals. Kooyonga is fully committed to this vision and has opportunity to sincerely thank the 450 members who provided initially asked the Women’s Committee to prepare a discussion feedback, we really appreciate the valuable time each member paper detailing their thoughts and recommendations regarding invested to complete this survey. Committee will benchmark Vision 2025. It is likely a separate Sub Committee/taskforce will results against previous surveys conducted to ascertain areas be established once the new Committee is formed to work on of improvement or decline to assist the Committee’s ongoing this project. Committee will undertake a 6 monthly review of review of operations. An initial snapshot of the results has been key initiatives and a gap analysis to ensure we continue to work provided overleaf for member information, with a more detailed towards the future model. overview to be presented at the Annual General Meeting. Over the last 12 months Committee reviewed our junior Crawford Giles membership model after identifying a decline in junior Chair – Finance, Audit & Membership Committee members and the number of enquiries from prospective junior and younger members over the last 12 to 18 months. Following Vale this review, a number of changes were introduced to our junior category age brackets and fee structure to provide a more It is with sadness that we record the competitive membership offering as well as encourage friends deaths during the year of the and family of members to consider Kooyonga as the club of following members; choice. A Rule change is required at the Annual General Meeting Dr WH Benson, Mrs TF Blunden, to reflect the new age brackets for junior membership, with explanatory notes to be provided to members for review prior to Mrs AP Bowden, Mr DM Caldecott, the meeting. Mrs ZL Daw, Mr MI Evens, Arch LA Faulkner, Committee has recently amended the By-Law relating to Social membership to encourage current members considering Mrs PM Fricker, Mr MH Hall, Mr RJ Kidd, resignation to retain a financial and social interest in the Club. Mr AR Kitto, Mr TJ Marriott, Mr RL Mills, The new Social category is also aimed at attracting non golfing family and friends of members to join the Club and enjoy the Mrs PC Paull, Mr KA Phelps, clubhouse facilities and social activities. Mrs BJ Shierlaw, Mrs JA Somerville I would also like to take this opportunity to thank Susie Mathews, our Golf & Membership Manager for the outstanding manner in which she continues to welcome all applications for membership right through to the management of the induction process including the meetings Brett, Susie and I hold with all new members prior to being balloted by the TENURE REDUCTION INSTALMENTS Average tenure of Category One Members reduced by 351 current playing members Members paid their 10% subscriptions by 17 instalments OVER LAST 3 YEARS YEARS TO SLOW GROWTH IN COMPARED TO 274 LAST YEAR NUMBER OF GOLF ROUNDS Annual Report 2018/19 Page 17

TOP 2 WORDS MEMBERS USED IN THE 2019 SURVEY TO DESCRIBE KOOYONGA’S GOLF COURSE EXCELLENT CHALLENGING HOW WELL MEMBERS BELIEVE WE LIVE UP TO OUR VALUES AND CULTURE RESPECT 8.1/10 EXCELLENCE 8.1/10 INCLUSIVE 7.8/10 FRIENDLY 8.2/10 GOLF COURSE GOLF SHOP CATERING Overall satsifaction of Overall satisfaction of 8.5/10 the golf course golf shop and services Overall satisfaction of clubhouse, bar and 8.1/10 8.7/10 catering services A DECREASE FROM 8.7/10 IN 2017 INCREASE FROM 8/10 IN 2017 INCREASE FROM 8.1/10 IN 2017 AND BUT ON PAR WITH RATING IN 2012 AND 7.1/10 RATING IN 2012 7.9/10 IN 2012

HOW MEMBERS VIEW THEIR MEMBERSHIP @ KOOYONGA FULFILLING SATISFYING OK SATISFACTORY GREAT EXPENSIVEREWSAURPDEIRNGB ENJOYABLE GOOD WORTHWHILE FANTAPSRTIICVILEFUGNE AVERAGE WONDERFUL FRIENDLY VALUABLE INTERESTING PLEASURABLE OUTSTANDING BRILLIANT IMPORTANT ADMINISTRATION STAFF OVERALL Overall satisfaction of 8.9/10 8.3/10 administration services Overall satisfaction Overall club satisfaction of staff friendliness at Kooyonga 8.5/10 and service SLIGHT DECREASE FROM 8.5/10 COMPARATIVE TO RATING IN 2017 AND SLIGHT INCREASE FROM 8.8/10 IN IN 2017 BUT INCREASE FROM INCREASE FROM 7.9/10 IN 2012 SURVEY CONDUCTED 2017 8/10 IN 2012

Annual Report of the Committee Match It has been another busy golf at Kooyonga. The average number of rounds now played year of golf activity at by a member has grown to 43 rounds per year made up of Kooyonga with healthy field competition and social rounds recorded. The average field sizes for our regular daily sizes on our key competition days of Tuesday, Wednesday and competitions and major Club Saturday have fluctuated slightly year on year as can be seen in events. I thank members for the table provided, meaning most of the member round growth not only their participation, has occurred on non-competition days. but the spirit in which all competition golf is played at our Club. I congratulate all members who won an event throughout the year, but just as importantly I congratulate those members who improved their handicap or achieved a personal goal in their golfing game over the last 12 months. While on the topic of member handicaps, I can report that Average Weekly Competition Fields the average member golf link handicap has slipped out by a quarter of a shot over the last 12 months from 16.70 to 16.95. Tuesday Wednesday Saturday The small downward movement was relatively consistent for each grade. Our records show very little movement in average 2015/16 94 167 159 handicaps over the last 3-5 years despite the vegetation removal as part of the landscape enhancement plan and other 2016/17 79 167 172 changes to the golf course. Golf Australia will be introducing changes to the handicap system from 1 January 2020, so it will 2017/18 81 166 174 be interesting to track the impact of these changes over time. Our round statistics show our round numbers have increased 2018/19 92 164 169 by 3.5% to 49,500 in total over the last 12 months due to growth in member rounds which make up 85% of all rounds of

Annual Report of the Committee Match Speed of play continues to be a regular topic of discussion at Match Committee as we search for improvements. As can be seen in the graph provided, there has not been a significant increase in the average time per round over the last 12 months, nor over the last 4 years. Average times haven’t regressed on major competition days of Wednesday and Saturday where a marshal is used more frequently, but have increased on Monday, Friday and Sunday where average field sizes have grown. For member information, Committee of ready golf and help maintain flow Graeme Smith, Bob Mullins, David review round times against our speed around the course for the benefit of all Proud, Frank Tripodi, Ken Parker & Keith of play By-Law and identify members members on the course. Plummer. Runners up were the ‘CLOTS’ who fail to meet the established KPI’s, Committee decided not to introduce comprising of Ian Kingsborough, Craig which leads to an initial discussion with additional penalty areas or the local Mason, Alex Gray, Bob Lovelock, Norm offending members about issues in rule E5 offering members the option Cleveland & Bill Nott. Congratulations their round and education about the of dropping on the side of the fairway to Graeme Smith who was the 2018 importance of maintaining their place with a two shot penalty if they hit an Men’s Brownlow Medallist. The winning in the field and playing ready golf. While errant shot that is out of bounds or women’s team was ‘The Mixtures’ some members believe more should be in a less than desirable position. The comprising of Jane Hunter, Melissa done by Management and Committee Committee’s preference is to watch Emmett, Helen Berry, Pip Oxenham, to improve speed of play and punish and assess the impacts of such Rules Melissa Nelligan & Wendy Monfries. offenders, we have found no consistent at other clubs before considering Runners up were the ‘Fairway to pattern of individual members not further. Heaven’ team comprising of Virginia meeting our established KPI’s on key The table of competition results Lacey, Angela Fleming, Jo Woods, competition days. included within the Annual Report Miriam Van der Zalm, Kerrie van Dissel The R&A introduced new Rules of Golf acknowledges individuals and teams & Suzy Kitto. Congratulations to Wendy from 1 January 2019, some of which who have achieved golfing success Monfries who was the 2018 Women’s are designed to improve speed of over the last 12 months, but it would Brownlow Medallist. play. It will be interesting to see if our be remiss of me not to mention some average times reduce over an extended of the highlights. period. As we outlined in our speed The Kooyonga Premier League of play document last year there are continues to be a popular competition many factors that impact speed of played in both a men’s and women’s play including tee time intervals and division which now run alongside the length of the course. We would each other. In the men’s competition ideally like to widen tee time intervals the ‘Wednesday Wonders’ won the to 9 minutes on key competition days season with the team comprising of but current demand for tee times limit our ability to do this without resultant waiting lists. The Membership Committee are considering a further reduction in membership quotas which would help in this regard in the longer term. In the meantime, I encourage all members to adhere to the principles Annual Report 2018/19 Page 21

Annual Report of the Committee Match Pictured L-R: Jo Woods, Jan Marriott, Zoee Dolling, Ros Brown, Jane Hunter, Karen Chenoweth, Barb Burnett The Kooyonga Women’s A4 & Sharp Cup (Juniors) had male individual player, Darcy Salamon received the NE Crafter a successful year, both strongly winning their respective Trophy for most improved male player and Alex Nemer was competitions with Women’s A4 defeating The Vines 4/1 and awarded the WS Rymill Trophy for best junior pennant player. Sharp Cup defeating Glenelg 4.5/0.5. Simpson Cup, Bonnar The best female player awards went to Lyn McGough for Cup, Sanderson Cup, Women’s A3, Cleek 1 and Junior Div 2 all Women’s A1/A2, Zoee Dolling for Women’s A3/A4 and Lane finished fourth in their respective competitions. Our Pike Cup Trenorden for Cleek 1/Cleek 2. Congratulations to team finished 5th on the ladder and Cleek 2 finished 6th. Lyn McGough who was named as the Captain of the Golf SA The End of Season Pennant dinner is now combined into one Pennant Team of the Year. event where the male and female teams are able to jointly celebrate the season and any achievements made. On this evening awards were presented to best and most improved players. Nick Deutrom received the RK Duval Trophy for best CORPORATE GOLF F&B SPEND RETAIL SPEND Corporate golf events $20.65 $10.15 have declined by Average F&B spend Average golf retail spend per round of golf per round 15% 1% DECLINE FROM LAST YEAR 15% DECLINE FROM LAST YEAR DUE 578 less players on course TO WOMEN’S AUSTRALIAN OPEN $202 AVERAGE SPEND PER PLAYER (INCREASE OF $25/PLAYER) Annual Report 2018/19 Page 22

Annual Report of the Committee Match Pictured L-R: Emily Giotis, Oliver Pritchard, David Fraterman (Manager), Alex Nemer, Anthony Di Paolo, Jack Speirs, Hayden Massey (front) Nick Deutrom with Dot Duval Darcy Salamon with Grant Raymond Alex Nemer with Ross Dillon Zoee Dolling, Lane Trenorden, Lyn McGough GOLF ROUNDS ACTIVE MEMBERS HANDICAP Rounds played in 2018/19 200 (85% member rounds) 16.95 of our most active 49,659 members played 20,000 Average handicap of rounds last year Kooyonga member 3.5% INCREASE IN ROUNDS COMPARED TO LAST YEAR MAKES UP 50% OF ALL COMPARED TO 16.7 AT SAME MEMBER ROUNDS TIME LAST YEAR Annual Report 2018/19 Page 23

Annual Report of the Committee Match Joe Hodgson, Men’s Club Champion For the second year in a row the Women’s Club Lyn McGough,Women’s Club Champion Championships were played in conjunction with the Gary O’Loughlin, Senior Club Champion Men’s Club Championships over the June long weekend. Darcy Salamon, Junior Boy’s Club Champion Congratulations to Lyn McGough who defeated Jodie Emily Giotis (3rd from left), Junior Girl’s Club Champion Deacon and won her seventh Women’s Club Championship Annual Report 2018/19 Page 24 which equalled Ebony Riordan’s (nee Heard) record. Congratulations also to Joe Hodgson for winning his first Club Championship, defeating Bruce Lindner 7/6. The conditions of play changed for the Junior Boy’s Championship in 2018 with players qualifying over 36 holes to compete for the title the following weekend playing match play on 28 October. Congratulations to Darcy Salamon who won the Boy’s Junior Championship and to Emily Giotis who won the Girl’s Club Championship the week prior on 21 October. Gary O’Loughlin won the Senior Club Championship defeating defending champion Ken Parker 3/2 on 28 October. In 2018 the men started the Veteran’s Trophy and Veterans Handicap match play competition. Congratulations to Tony Timmins won the inaugural Veteran’s Trophy with a score of 6 and 5 defeating Peter Marshall. The RS Thomson is the Club’s most prestigious event having been played since 1927 and consistently attracts a full field. Congratulations to Tim Sennett & Deb Percey who won the 2018 RS Thomson Mixed Canadian Foursomes by 0.125 shots from Tim Moore & Sally Hammer. The Valerie Hill Memorial Trophy which is a very important and highly desired competition on the women’s golf calendar was won in 2018 by Jodie Deacon on a countback from Margie Gregg & Melissa Nelligan. Our interclub events continue to provide members with the opportunity to play competitive golf whilst enhancing and enjoying the camaraderie between Kooyonga and fellow clubs. The Cargie is an annual interclub event against Royal Adelaide which was played for the 17th year in October. Kooyonga won the Cargie trophy for a second consecutive year with 52 Kooyonga members battling it out against 52 Royal Adelaide golfers, dining afterwards at Kooyonga. Kooyonga now leads with 10 to 5 wins since the inception of the event in 2002 (one draw and one bye in that time). The Cudmore Cup is a women’s honour board event played as a match play competition annually alternating between Kooyonga and Royal Adelaide with both clubs competing for the Cup. The event played at Royal Adelaide on 5 April 2018 was won by Royal Adelaide 7/2, however Kooyonga remains ahead in the leaderboard by 10 matches.

Annual Report of the Committee Match In March 2019 Kooyonga’s team of 12 since the inaugural event in 2012. Hole-in-Ones players defeated the Men’s Kingston I would like to take this opportunity Heath touring team at home in what to congratulate Kyle Hayter who was Congratulations to the following could only be described as close named in the 2018 SA Boy’s State members who achieved a but solid victory. It took a terrific last Team. Kyle won 3 out of 7 matches hole-in-one through the round score of 38 by ex Captain, Grant and the SA team finished 5th. Kyle was 2018/19 year: Raymond to get us across the line. again named for the SA Boy’s State Michael Davey, Hole 3 22 Kooyonga women participated Team for 2019. 26 May 2018 in the 10th annual Kooyonga/ In summary, we had another great Graeme Smith, Hole 7 Kingston Heath Challenge at Kingston year of golf at Kooyonga and I trust 28 July 2018 Heath in November. Sadly Kooyonga members enjoyed the competition Chris Woollacott, Hole 19 relinquished the Rose Bowl for only the and variety of events on offer. I wish 4 August 2018 third time, however despite this and to recognise Susie Mathews and the Chris Loan, Hole 14 the challenge of their course, the team golf shop staff for their assistance to 22 August 2018 had a huge amount of fun and lots of coordinate and run each and every Andrew Boden, Hole 19 laughs. event on our golfing calendar. I also 25 August 2018 The annual Airport Challenge against acknowledge and thank the Match Trevor Dolman, Hole 19 Glenelg Golf Club was played on Committee for their valuable input and 1 September 2018 Wednesday 27 February 2019. support over the last 12 months. Richard Fennell, Hole 3 Kooyonga once again won the event Dr Angas Hains 8 September 2018 with a 6.5/0.5 result, keeping the Chair – Match Committee Nicholas Howard, Hole 7 trophy at home which we have held 7 November 2018 Ian McDowall, Hole 15 Men’s Kooyonga v Kingston Heath Challenge 20 January 2019 David Raggatt, Hole 7 31 January 2019 Philip Laity, Hole 3 27 February 2019 Bob Lovelock, Hole 14 20 March 2019 Women’s Kooyonga v Kingston Heath Challenge Annual Report 2018/19 Page 25

Annual Report of the Committee Competition Results Men’s Competition Results STATE EVENTS WINNER RUNNER-UP Simpson Cup Glenelg Grange Bonnar Cup Grange The Vines CLUB EVENTS WINNER RUNNER-UP Club Championship Joseph Hodgson Bruce Lindner WS Shephard Club Medallist Joseph Hodgson Geoff Brennan ‘A’ Grade Plate Bevan O’Connor Geoff Raneberg ‘B’ Grade Trophy Peter Robinson Keith Plummer ‘B’ Grade Plate Colin Alexander Joe Mittiga ‘C’ Grade Trophy ‘C’ Grade Plate Michael Coro Stephen Daniels Club Senior Championship Club Senior Handicap Rory Brennan Ajit Bedi Club Foursomes Championship Club Handicap Foursomes Gary O’Loughlin Ken Parker Club Junior Championship Club Junior Handicap Chris Watson John Bell Monthly Medals Jordan Bishop & Darcy Salamon Geordie Golding & Geoff Brennan Junior Summer Trophy HL Rymill Championship Bruce Lindner & Geoff Raneberg Jordan Bishop & Darcy Salamon Kooyonga Cup Bonython Medal Darcy Salamon Kyle Hayter Playfair Putter TH Brown Trophy Jack Speirs Oliver Pritchard JW McGregor Cup Captain’s Trophy A: Ian McDowall, Mark Kelly, Geoff Raneberg, Hayden Massey, Doug Dick, Daniel Toh, Anzac Cup Anzac Memorial Garry Davis, Graeme Agars, Rod Marsh, Scott Duval, Kyle Hayter, Jack Speirs Father & Son Cup FS Mann Winter Eclectic B: Adam D’Achille, David Crotti, Bernie Bowler, Rick Woollard, John Bell, George Waterhouse, Robert Young, John Anderson, Graham Parker, Tim McGrath, Greg May, Joe Mittiga Summer Eclectic C: John Harvey, David Garrett, Brent Kitson, Andrew Boden, Grant Laidlaw, Michael Coro, Winter Four-Ball Summer Four-Ball Mark McGill, Anthony Walsh, John Gilgen, Reg Forbes, Tim Cooper, Colin Alexander Mitchell Crabbe (Commonwealth) Jordan Junghun Jung (Mt Lawley) Billy Cawthorne (Royal Adelaide) Frank Vucic (Glenelg) Jordan Bishop Jordan Percey Sean Bushby Michael Schulze Kyle Hayter Geoff Brennan Michael Smith Marc Colquhoun Gary Deboar Philip Laity Marc Colquhoun Grant Whitford Keith Plummer Carrol Reynolds Michael Davey Tony Timmins Scott Duval & Thomas Duval Kym Duval & Michael Duval A - Mark Kelly A - George Giotis B - Michael Davey B - George England C - Mark McGill C - Colin Alexander A - Scott Duval A - Geoff Kay B - Michael Davey B - Mick Taylor C - Colin Alexander C - Ken Kinnane Ian Sargent & Greg May Nicholas Howard & Sam Atkins Sam McLeay & Ned Looker Timothy Simpson & Harry Simpson Annual Report 2018/19 Page 26

Annual Report of the Committee Competition Results Mixed Competition Results STATE EVENTS WINNER RUNNER-UP Sharp Cup Kooyonga Glenelg Junior Division 2 Pennant The Vines Tea Tree Gully CLUB EVENTS WINNER RUNNER-UP RS Thomson Tim Sennett & Debra Percey Tim Moore & Sally Hammer Father & Daughter Quentin Gower & Sarah Gower George Giotis & Emily Giotis Mother & Son Louise Bowler & Patrick Bowler Debra Percey & Jordan Percey Family Mixed Foursomes Graeme Smith & Lesley Smith Colin Alexander & Deborah Alexander Club Mixed Foursomes Championship Bevan O’Connor & Hayley Hunt Jordan Percey & Debra Percey Mixed Four-Ball Graeme Smith & Lesley Smith Chris George & Olivia Giotis Women’s Competition Results RUNNER-UP STATE EVENTS WINNER Glenelg Royal Adelaide Women’s A1 Pennant Grange West Lakes Women’s A2 Pennant Glenelg The Vines Women’s A3 Pennant Glenelg Flagstaff Hill Women’s A4 Pennant Kooyonga Tea Tree Gully Women’s Cleek 1 Mt Osmond Women’s Cleek 2 Royal Adelaide CLUB EVENTS WINNER RUNNER-UP Club Championship Lyn McGough Jodie Deacon ‘A’ Grade Plate Jo Woods Merry Frogley Bronze Cup ‘B’ Grade Plate Pip Oxenham Lynley Marshall C Grade Salver Jane Young Anne Brown Ross Sawers Championship Nol Parkyn Barb Gower Bantick Salver Deb Percey & Jodie Deacon Penny Wark & Jill Trenorden Olive Griggs Cup Sue Fuller & Barb Rasmussen Helen Egar & Barb Burnet Vice Captain’s Foursomes Cathy Miller & Kerrie Van Dissel Robyn Burgan & Lesley Brown Club Junior Championship Penny Wark & Robyn Burgan Merry Frogley & Jane Hunter Junior Girls’ Invitational Captain’s Trophy Emily Giotis Olivia Giotis President’s Trophy Jin-Young Yun (Grange) Lion Higo (Emerald Lakes) Valerie Hill Trophy Zoee Dolling Sandy Robinson Mother & Daughter Lyn McGough Wendy Monfries Monthly Medals (Tuesday) Jodie Deacon Margie Gregg Sue Fuller & Jane Fuller Judy Hyde & Megan Thredgold Monthly Medals (Saturday) Saturday Winter Medal A: Ann Ewer, Merry Frogley, Jane Hunter (2), Karen Chenoweth, Christine Flynn B: Rosemary Leahy, Mary Beamond, Jill Phillips, Wendy Monfries, Virginia Lacey, Lisa Ingerson C: Lee Zander, Nol Parkyn, Pauline Nietz, Mary Hammer, Barbara Clapp, Angela Fleming Sandy Robinson, Jill Trenorden, Christine Walsh Barb Burnet Annual Report 2018/19 Page 27



Financial Report For the Year Ended 31 March 2019 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 Income For year ended 31 March 2019 Classification of Income and Expenses by Function 2019 2018 $ $ Note 3,195,317 3,048,154 Income 21,444 17,565 Memberships 3,216,761 3,065,719 Subscriptions Other (41,013) (42,866) 223,553 291,845 Total Memberships 41,775 33,447 House Contributions (as per supplementary information) 6,273 6,270 Golf Shop Operations Contributions (as per supplementary information) 21,315 17,491 69,363 Other Income 57,208 Bank income 3,468,664 Profit on sale of plant & equipment 3,371,906 Other income (28,673) (25,577) Total Other Income (951,832) (931,505) (1,779,344) (1,795,467) Total Income (800,605) (778,458) (3,560,454) (3,531,006) Expenses (as per supplementary information) (91,790) (159,100) Finance expenditure Administration expenditure 290,342 174,412 Course expenditure House expenditure 198,552 15,312 Total Expenses 40,000 - Operating surplus/(deficit) before Entrance Fees (13,212) (116,943) Entrance Fees 225,340 (101,631) Total Surplus/(Deficit) for Year Amounts Received by Kooyonga Foundation for Golf Academy Women's Australian Open Total Comprehensive Income The accompanying notes form part of the financial statements Annual Report 2018/19 Page 30

Statement of Comprehensive Income THE KOOYONGA GOLF CLUB INCORPORATED For year ended 31 March 2019 (supplementary information) STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2019 House Contribution Bar Sales 2019 2018 Less: Cost of Sales $ $ Gross Profit (2019: 61.8%, 2018: 60.5%) 772,682 720,529 (294,788) (284,458) 477,894 436,071 Food Sales 962,502 866,738 Less: Cost of Sales (461,359) (409,731) Gross Profit (2019: 52.1%, 2018: 52.7%) 501,143 457,007 Other Income 32,768 26,239 Total Trading Gross Profit 1,011,805 919,317 Less: (1,076,398) (989,275) Salaries and associated costs (14,591) (17,578) Other direct expenses (1,090,989) (1,006,853) Profit/(loss) for the year (79,184) (87,536) Add: Unused catering levy 38,171 44,670 Total House Contribution (41,013) (42,866) Page 3 The accompanying notes form part of the financial statements Annual Report 2018/19 Page 31

Statement of Comprehensive Income For year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2019 (SsTAuTEpMpENlTeOmF CeOMnPtREaHrEyNSiIVnEfINoCrOmME ation) FOR THE YEAR ENDED 31 MARCH 2019 Golf Shop Operations Contribution 2019 2018 $ $ Retail Sales Less: Cost of Sales 502,772 562,261 Gross Profit (2019: 30.3%, 2018: 30.6%) (350,515) (390,114) 152,257 172,147 Other Golf Operations Income Tuition (net) 51,099 26,663 Driving Range 50,628 52,320 Hire Equipment 10,452 Club & Buggy Handling & Cleaning Fees 9,641 81,517 Competition Fees 87,023 188,943 Green Fees 186,711 221,276 Motorised Cart Fees 243,044 84,380 Trade days income 87,803 223,335 Other 165,135 16,897 28,164 Total Trading Gross Profit 1,077,930 1,061,505 Less Golf Operations Expenditure (45,351) Buggy Expenses (47,695) (40,824) Depreciation (42,165) (11,166) Driving Range (13,503) (28,650) Other (25,677) (31,750) Pennant Expenses (32,876) Professional Retainer - Promotion & Communication - (9,367) Repairs and Maintenance (20,032) Salaries & Associated Costs (635) Trophies & Prizes (118) (466,901) (491,890) (151,441) Total Golf Shop Operations Contribution (163,996) (786,085) (837,952) 291,845 223,553 The accompanying notes form part of the financial statements. Page 3 The accompanying notes form part of the financial statements Annual Report 2018/19 Page 32

Statement of Comprehensive Income THE KOOYONGA GOLF CLUB INCORPORATED For year ended 31 March 2019 (supplementary information) STATEMENT OF COMPREHENSIVE INCOME 2019 2018 FOR THE YEAR ENDED 31 MARCH 2019 $ $ Course Expenditure: 74,843 82,008 Bore maintenance, electricity & water costs 195,805 180,252 Chemicals, turf & sundry expenses Consultants fees 10,304 8,622 Course maintenance 46,962 43,551 Depreciation 402,573 416,873 Petrol, oil & lubricants 21,326 25,047 Plant maintenance 54,076 57,112 Vegetation & Tree Maintenance 22,438 21,665 Wages & associated costs 951,017 960,337 1,779,344 1,795,467 House Expenditure: Depreciation 421,107 405,779 Cleaning 96,690 95,024 Maintenance 64,328 58,928 Light, power & gas 99,415 79,344 Laundry 31,443 32,936 Upkeep of Surrounds 29,052 31,986 Other 58,570 74,461 800,605 778,458 Administration Costs: Auditors remuneration 2 7,700 9,750 Committee expenses Computer software & website expenses 24,336 21,466 Insurance premiums and claim expenses Printing, stationery, postage & telephone 36,306 36,380 Rates & Taxes Salaries & associated costs 37,043 36,838 Membership Promotional & Marketing Expenses Other 23,218 28,632 Finance & Property Expenses: 112,572 114,307 Interest & bank fees 597,963 559,162 7,176 13,862 105,518 111,108 951,832 931,505 28,673 25,577 28,673 25,577 The accompanying notes form part of the financial statemPeangtes3 Annual Report 2018/19 Page 33

Statement of Financial Position As at 31 March 2019 Note 2019 2018 $ $ 3 Current Assets 4 2,971,920 1,961,762 5 122,865 307,116 Cash & cash equivalents 6 304,186 298,112 Trade & other receivables 117,191 98,469 Inventories 7 Other current assets 8 3,516,162 2,665,459 Total Current Assets 9 7,641,284 8,094,676 10 285,770 140,837 Non-Current Assets 10 7,927,054 8,235,513 Property, plant and equipment Capital works in progress 11,443,216 10,900,972 Total Non-Current Assets 515,010 682,085 2,367,557 1,838,037 Total Assets 251,811 269,644 Current Liabilities 3,134,378 2,789,766 Trade & other payables Subscriptions and other monies in advance 32,992 60,701 Short term provisions 32,992 60,701 Total Current Liabilities 3,167,370 2,850,467 Non-Current Liabilities 8,275,845 8,050,505 Long term provisions 8,275,845 8,050,505 Total Non-Current Liabilities 8,275,845 8,050,505 Total Liabilities Net Assets Equity Retained earnings Total Equity The accompanying notes form part of the financial statements Annual Report 2018/19 Page 34 5

Statement of Changes in Equity For the year ended 31 March 2019 Retained Total Earnings $ $ 2018 8,152,136 8,152,136 Balance as at 1 April 2017 (101,631) (101,631) Total surplus (deficit) for the year 8,050,505 8,050,505 Balance as at 31 March 2018 8,050,505 8,050,505 2019 225,340 225,340 Balance as at 1 April 2018 8,275,845 8,275,845 Total surplus (deficit) for the year Balance as at 31 March 2019 The accompanying notes form part of the financial statements Annual Report 2018/19 Page 35 Page 6

Statement of Cash Flows For year ended 31 March 2019 Note 2019 2018 11 $ $ 3 Cash Flows from Operating Activities 7,070,886 5,710,337 290,342 174,412 Receipts from customers/members Entrance fees (5,841,654) (5,606,000) Payments to suppliers & employees (81) (78) Interest paid Interest received 41,775 33,447 Net cash provided by (used in) operating activities 1,561,268 312,118 Cash Flows from Operating Activities (412,452) (531,682) (144,931) (16,939) Payments for purchase of property, plant & equipment 6,682 Payments for capital work in progress 6,273 - Proceeds from sale of property, plant & equipment - Amounts received for new assets (551,110) (541,939) Net cash provided by (used in) investing activities 1,010,158 (229,821) Net increase/(decrease) in cash held 1,961,762 2,191,583 Cash at beginning of the year 2,971,920 1,961,762 Cash at end of the year The accompanying notes form part of the financial statements Annual Report 2018/19 Page 36 Page 7

Notes to and Forming Part of the Accounts THE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Note 1 - Statement of Significant Accounting Policies The finBaansicsiaolfrAepccoortuinstainggeneral purpose financial report that has been prepared in accordance with Accounting Standards Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporation Act of 1985 (SA). The financial report of Kooyonga Golf Club Inc complies with all Australian equivalents to International Financial Reporting Standards (IFRS) in t Basis of Preparation The financial report has been prepared on an accruals basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in the exchange for assets. Unless otherwise stated, the accounting policies adopted are consistent with those of the previous year. The following is a summary of the material accounting policies adopted by the entity in preparation of the financial report. The accounting 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 2018/19 Page 37

Notes to and Forming Part of the Accounts For year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Note 1 - Statement of Significant Accounting Policies (cont) Depreciation (cont.) Category Useful Lives Buildings 5% - Brick & Stone - Wood & Iron 10% Course development 10% Watering system Bores 4% Plant & equipment 5% Computer equipment 10 -20% 30% Impairment of Assets At each reporting date, the Committee reviews the carrying values of its assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the 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's carrying 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 past experience, the accrual of the Club's long service leave liability based on remuneration rates and on costs current at balance date for all employees with five or more completed years of service provides an estimate of the long service leave liability not materially 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. Annual Report 2018/19 Page 38 Page 8

Notes to and Forming Part of the Accounts THE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Note 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. levies in advance and subscriptions and other monies in advance. This has not been shown in the current year as all monies received in advance relates to subscriptions and other monies so the Club has determined this to not be necessary. i) New Accounting Standards and Interpretations Certain new accounting standards and interpretations have been published that are not mandatory for 31 March 2019 reporting periods. The Kooyonga Golf Club Inc have received preliminary advice that the following new accounting standards may impact future reporting: 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 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. Annual Report 2018/19 Page 39

Notes to and Forming Part of the Accounts For year endedTHE KOOYONGA GOLF CLUB 31 MarchINCORPORATED 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Basis of Accounting 2019 2018 $ $ Note 2 - Auditors' Remuneration 7,700 7,850 Remuneration of the auditor for: - 1,900 - auditing or reviewing the financial report 9,750 - other accounting service 7,700 Note 3 - Cash and Equivalents 7,000 7,000 2,114,920 1,954,762 Cash on hand Cash at bank 850,000 - Short term deposits 2,971,920 1,961,762 Note 4 - Trade and Other Receivables 122,865 307,116 - - Trade receivables Less: Provision for impairment of receivables 122,865 307,116 Note 5 - Inventories 66,920 66,747 19,055 22,185 Stock - Bar 212,567 205,113 Stock - Dining Room Stock - Golf Shop 5,644 4,067 Stock - Miscellaneous 304,186 298,112 Note 6 - Other Current Assets 95,948 94,269 Prepayments 21,243 4,200 Other 117,191 98,469 Page 11 Annual Report 2018/19 Page 40

Notes to and Forming Part of the Accounts THE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Basis of Accounting 2019 2018 $ $ Note 7 - Property, Plant and Equipment Freehold land & buildings (at cost) 7,491,340 7,466,450 Less: Accumulated depreciation (2,823,988) (2,483,115) 4,667,352 4,983,335 Course development (at cost) Less: Accumulated depreciation 1,907,296 1,799,470 (1,052,380) (898,106) Watering equipment (at cost) 901,364 Less: Accumulated depreciation 854,915 1,680,388 Course building, plant & equipment (at cost) 1,693,365 (1,150,825) Less: Accumulated depreciation (1,230,635) 529,563 Furniture, fittings & equipment (at cost) 462,730 Less: Accumulated depreciation 2,472,219 2,578,253 (1,423,104) Golf Shop Equipment & Buggies (at cost) (1,566,432) 1,049,115 Less: Accumulated depreciation 1,011,821 1,136,799 Total property, plant and equipment (732,621) 1,241,570 404,178 (812,855) 428,715 327,889 (100,768) 358,683 227,121 (142,932) 215,751 8,094,676 7,641,284 Note 7(a) -Movement in Carrying Amounts Land & Course Watering Course P&E Furniture & Golf Shop Total Buildings Develop Equip & Buildings Fittings Equip $ $ $ $ $ $$ 8,094,676 227,121 412,451 Balance at beginning of 4,983,335 901,364 529,563 1,049,115 404,178 30,794 - the year 24,890 107,825 12,976 131,196 104,770 - - - - (865,843) Additions - (79,809) - (42,164) Disposals (340,873) (154,274) (168,490) (80,233) 7,641,284 Depreciation expense Carrying amount at the 4,667,352 854,915 462,730 1,011,821 428,715 215,751 end of the year Page 11 Annual Report 2018/19 Page 41

Notes to and Forming Part of the Accounts For the yearTHE KOOYONGA GOLF eCLnUBdINeCdORP3OR1ATMEDarch 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Basis of Accounting 2019 2018 $ $ Note 8 - Capital Work in Progress - 26,505 Kooyonga Foundation Golf Academy 8,964 42,216 5 year plan course works 193,881 Club House Upgrade 82,925 - Other 285,770 72,116 140,837 Note 9 - Trade and Other Payables 321,743 413,394 Current 193,267 268,691 Trade payables 515,010 682,085 Sundry payables and accrued expenses Page 11 Annual Report 2018/19 Page 42

Notes to and Forming Part of the Accounts THE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Basis of Accounting Long Service Note 10 - Provisions Annual Leave Leave Total Opening balance at 1 April 2018 183,672 146,673 330,345 Additional provisions 149,259 7,593 156,852 Taken during the year (176,710) (202,394) Closing balance at 31 March 2019 156,221 (25,684) 284,803 128,582 Current: 2018 Annual leave 2019 $ Long service leave $ 183,672 Non-current: 156,221 85,972 Long service leave 95,590 251,811 269,644 32,992 60,701 Note 11 - Statement of Cash Flows Reconciliation of cash flow from operations with operating surplus/(deficit): 225,340 (101,631) Operating surplus/(deficit) 865,843 863,477 (6,273) (6,270) Non-cash items in operating surplus/(deficit) Depreciation 184,251 (193,372) (Profit)/losses on sale of property, plant & equipment (18,723) 43,582 (55,150) Changes in Assets and Liabilities (6,073) (Increase)/Decrease in receivables 529,520 (217,915) (Increase)/Decrease in other assets (45,542) (21,660) (Increase)/Decrease in inventories (167,075) Increase/(Decrease) in other liabilities 1,561,268 1,057 Increase/(Decrease) in provisions 312,118 Increase/(Decrease) in payables and accruals Cash flow from operations Page 11 Annual Report 2018/19 Page 43

Notes to and Forming Part of the Accounts For the year ended 31 MarchTHE KOOYONGA GOLF CLUB INCORPORATED 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 NotBeasi1s o2f A-ccCournteindg it 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 13 - Remuneration of Committee Members No amounts were received or due and receivable from the Club by the Committee. Note 14 - 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 Rate Total Average Interest Rate Maturing Within Effective 1 Year Interest Rate 2019 2018 2019 2018 2019 2018 2019 2018 %% $ $ $ $ $ $ Financial Assets 1.20 1.20 2,114,920 1,954,762 - - 2,114,920 1,954,762 Cash at bank - Short term deposits 2.55 2.55 - - 850,000 850,000 - - Total Financial Assets 2,114,920 1,954,762 850,000 2,964,920 1,954,762 Financial Liabilities: - - - -- THE BKoOrroOwYinOgNs GA GOLF CLUB -INCOR-PORATED- - - - -- Total Financial Liabilities - NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 b) Credit Risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any provisions for doubtful debts, as disclosed in the balance sheet and notes to the financial statements. The Club does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Club. c) Net Fair Values The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the balance sheet and the notes to and forming partPoafgthee1a1ccounts. Annual Report 2018/19 Page 44

Notes to and Forming Part of the Accounts THE KOOYONGA GOLF CLUB ForINCORPORATED the year ended 31 March 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Note 14 - 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 2019, the effect on profit and equity as a result of changes in the interest rate, with all other variables remaining constant would be as follows: Change in profit 2019 2018 - Increase in interest rate by 2% $ $ - Decrease in interest rate by 2% 59,298 39,095 (59,298) (39,095) Change in equity 59,298 39,095 - Increase in interest rate by 2% (59,298) (39,095) - Decrease in interest rate by 2% Note 15 - Leasing Commitments Operating lease commitments being for the lease of land and motorised carts payable: - not later than one year 61,511 52,252 78,378 - later than one year but not less than five 48,021 - - later than five years - 130,630 109,532 Note 16 - Related Party Transactions (a) The names of the Committee in office at the date of this report are: Dr Kenneth John Russell Mr Crawford David Giles Mr Terry Anderson Dr Angas Douglas Bell Hains Mrs Debbie Ann Alexander Mr Geoff Kay Mr Sam John Atkins Dr Lynn Stewart Ms Helen Elizabeth Egar (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) companies controlled by Mr Sam Atkins. The companies were paid $2,115.22. Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties. Page 16 Annual Report 2018/19 Page 45

Notes to and Forming Part of the Accounts For the yearTHE KOOYONGA GOLF CeLnUBdINeCOdRP3OR1ATMED arch 2019 NOTES TO AND FORMING PART OF THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2019 Note 17 - Contingent Liabilities There were no contingencies facing the Club as at 31 March 2019 that have not been brought to account in the financial statements. Note 18 - 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 19 - 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 20 - Club Details The principal place of business of the Club is: May Terrace Lockleys SA 5032 Annual Report 2018/19 Page 46 Page 16

Statement by the Committee In 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 2019 and it's performance for the year ended on that date in accordance with Australian Accounting Standards, mandatory professional reporting 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 2019 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 16. 4 During the financial year ended 31 March 2019 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 of the Committee by: KJ Russell CD Giles Captain Chairman - Finance, Audit & Membership Dated at Lockleys, S.A on the 16th day of May 2019 Annual Report 2018/19 Page 47 Page 19

Independent Audit Report to the members Bentleys SA Audit Partnership of 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.au Opinion We have audited the financial report of Kooyonga Golf Club Inc, being a general purpose financial report which comprises the statement of financial position as at 31 March 2019, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, accompanying notes to the financial statements and the statement by the committee. In our opinion, the financial report of Kooyonga Golf Club Inc. presents fairly, in accordance with Australian Accounting Standards, the Association Incorporations Act 1985 (SA) and other mandatory professional reporting requirements in Australia, the financial position of Kooyonga Golf Club Inc. and the entity as at 31 March 2019 and the results of their operations and cash flows for the financial year then ended. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Club in accordance with the ethical requirements of the Accounting Professional 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 our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Committee's responsibility for the financial report The Committee of the Club is responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Association Incorporations Act 1985 (SA). This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. A member of Bentleys, a network of independent advisory and accounting firms located throughout Australia, New Zealand and China that trade as Bentleys. All members of the Bentleys Network are affiliated only and are separate legal entities and not in Partnership. Liability limited by a scheme approved under Professional Standards Legislation. A member of Allinial Global – an association of independent accounting and consulting firms.