This report covers fiscal 2023, which saw a return to normal operations and social activities after the celebrations that marked our 100th anniversary.  In general terms, 2023 was another good year for the Club, with social activities remaining strong and the Club making investments in course maintenance equipment.  This past year we also updated our accounting system, moving from Sage to Quickbooks.  While this caused additional stress on the accounting staff, Quickbooks will better integrate with Chronogolf.  My thanks once again go to Stephanie Logothetis for all her efforts.

Income Statement

From a financial perspective, the total revenue generated by the Club was $398.6 K, which includes the amortization of the Centennial Fund of revenue of $41.4 K.  When the effects of the Centennial project are removed, the amount of revenue for 2023 was $357.1 K.  This is $51.4 K ahead of our budget of $305.67 K and slightly behind of the prior year actual revenue of $362.5 K.  Annual Dues and Golf Cart rentals were in line with budget, while Green Fees were ahead of both prior year and budget.  This increase is due in part to the income that we recognized related to unused tickets.  It is customary to book a portion of unused tickets to Green Fees and a portion to Social Events.  The Club also benefitted from government support of $10 K.  This is related to the forgiveness of a portion of our COVID loan of $40K.

Revenue from Social events totaled $103.9 K and a resulted in a net contribution, once expenses are deducted, of $49.6 K.  This contribution is $26.9 K greater than the budget of $22.7 K and $15.6 K higher than prior year.  Part of the increase year over year is related to the aforementioned unused tickets, which we did not do in 2022.  Course maintenance was $174.3 K, less than the budget of $190.0 K due primarily to a vacancy in staffing.  Depreciation has increased with the acquisition of the new equipment under a new Capital Lease.  Admin expenses came in higher than budget as a result of an increase in our Bad Debt expense, an increase in Interest expense and the addition of the Operations Manager.  The Bad debt expense is a result of a number of members who chose to resign, but after the invoicing had been issued.  Interest expense has increased with the addition of the capital lease for the course maintenance equipment.

For the perspective of the bottom line, this year’s net income was $27.6 K, slightly higher than last year.  Once the revenue effect of the Centennial Fund is removed, the deficit was $13.9 K, exactly what had been budgeted.  Last year (2022) the deficit was $15.3 K when adjusted for the Centennial Fund Revenue.  Despite being in a deficit position, the Club was in a cash flow positive position when the effects of non-cash charges such as depreciation are considered; the cash balance of the Club remains strong.  Nonetheless, continued deficits could make investing in the course a challenge.

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Balance Sheet

Our Club continues to benefit from a strong balance sheet.  We had $250K in cash and term deposits at December 31, 2023.  Accounts receivable are lower than prior year, due to the allowance for doubtful accounts being higher than prior year.  This allowance is higher than usual as we again had members decide to let their membership lapse after they had been billed. To the Club’s benefit, using Chronogolf to track members’ accounts has allowed us more carefully track member spending and balances owing.  The QST/GST receivable includes the amount related to the purchase of the maintenance equipment so it is higher than prior year.  Prepaid expenses are related to normal annual charges that are paid in advance, such as insurance and property taxes.  Building and equipment show the increase related to the acquisition (under a capital lease) of the new course maintenance equipment.

Liabilities include an amount for QST/GST payable which is offset by the receivable amount.   This amount represents an amount related to filing annually, rather than our normal quarterly filing. The Centennial Fund has decreased in line with the amortization amount that was brought into revenue.  Deferred Revenue has decreased because of the Credit Tickets that have been brought into revenue. The increase in the balance of the Capital Lease reflects the addition of the lease related to maintenance equipment.  The Club has repaid the Government Canada Emergency Business Account interest-free loan of $40,000 that was offered in 2020, taking advantage of the forgiveness of $10,000.

From a financial perspective, the challenges currently facing the club fall into two categories: maintaining operations during a period of continuing inflation and investing in improvements to our maintenance facilities.  Increasing costs have resulted in a slight increase to our annual dues.  In general, they will increase by 3%, but will remain less than $1,000 for regular members when including the Tickets (credit books) and taxes.

We have invested in maintenance equipment, but the state of the maintenance buildings along the first hole needs to be addressed.  We have an ad hoc committee reviewing solutions that will meet the needs of our grounds crew and considering different options of financing the same.

Alex Sandahl

Treasurer