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Mission statement
The Club is committed to providing sustainable golfing, commercial and other facilities that
will meet stakeholders’ demands
We broke our record set in 2012 for the number of golf rounds
Our lease was renewed for a further 10 years
Completed 95% of the improvements to the golf course
Funded the golf course improvements through normal trade income
Changed outsourcing partners which has resulted in improved quality outputs and significantly increased revenue
Key Highlights
RCC was allocated the SA Mid Amateur Championship
RCC Mid-amateur motivation.pdf Sept 2013.pdf
Created a new 5 year Strategic Plan and finalised an Operation Plan which outlines how we will achieve the strategic objectives
Key highlights cont..
•Free WiFi introduced for members
Digital
•Festive Friday
•Reintroduction of Sunday Lunches
Catering
•Additional Membership Structures
Membership
Other highlights
Membership
2011 2012 2013 20140
200
400
600
800
1,000
1,200
SocialOtherWeekdayWDOStudentsJuniorsFull ladyFull male
-27
-15
-14
Corporate membershipsAssociated Automotive Distributors
B2ITDeswik Mining
Consultants
ItecEast
Guvon Hotels
Meintjes Plant Hire
Sautech
Klinkenberg Attorney
Mercedes Benz
Lexus Security
Vega Instruments
Konica Minolta
Labournet
PDTSA Shimadzu
R613,154
Rounds of golf - monthly
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
1,000
2,000
3,000
4,000
5,000
6,000
200920102011201220132014
Rounds of golf - montly
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
1,000
2,000
3,000
4,000
5,000
6,000
200920102011201220132014
Rounds of golf - total
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
10,000
20,000
30,000
40,000
50,000
60,000
200920102011201220132014
2014 – 283 rounds more than YTD Feb ’13
2013 – 51,009
2012 – 50,519
2011 – 40,169
2010 – 41,525
2009 – 43,784
25% increase and maintained
2012 20130
10,000
20,000
30,000
40,000
50,000
60,000
LEAGUEMEMBVISTG/PARTYP/CARDSWDOPMG
Rounds of golf - Categories
+125
-1,622
-1,899
+2,967
+535
Rounds of golf - Rands per round
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec85
95
105
115
125
135
145
155
165
201120122013
Rounds of golf - Rands per round
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec85
95
105
115
125
135
145
155
165
2011201220132014
F&B Outsourced - DECORCC income % of Deco
sales
January ’12 49 532 11.6%
February ’12 52 376 12.1%
March ’12 52 895 11.7%
April ’12 46 482 12.9%
May ’12 64 064 11.0%
June ’12 51 785 13.3%
July ’12 72 335 13.5%
August ’12 57 153 12.6%
September ’12 64 594 11.4%
October ’12 68 194 10.2%
November ’12 81 047 11.5%
December ’12 65 771 11.2%
TOTAL 726 228 11.8%
F&B outsourced(income plus cost recovery)
Jan-
13
Feb-
13
Mar
-13
Apr-1
3
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct-1
3
Nov-1
3
Dec-1
30
50,000
100,000
150,000
200,000
GuvonDeco
6,5 months
R378k 5,5 months
R891k
RCC employees
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec20
25
30
35
40
45
50
55
60
201120122013
Key Projects
Golf Course Clubhouse Driving Range Additional income Streams Membership Growth Environmental plan RCC product Brand/Logo 5 Star Golf Experience Security Strategic Plan
Business Imperatives and Challenges Cash Flow
Solvency
SARS
Utilities
LeaseEnsure that these aspects are completely
resolved in 2013
•Ensure the utility account is resolved
City of JHB•Maintain
and improve on the successes of 2012 & 2013
•Achieve the metrics outlined in the Operational Plan
Operations
•Continue to enhance the members experience
•Membership Growth
•Improvement of the value proposition
Membership
Going Forward in 2014
•Essential to revamp
•Laborious and Time Consuming Task
Club Constitution
•Formalise Environmental Plan
Going Green
•Final year of my term as Chairman
•Structured change of the EC members
Succession Plan
Going Forward in 2014
Strategic PlanShort Term Goals (1st Year)
Adopt the CEO Concept immediately and begin the process
of implementing a Professionally Driven Operational Plan and Structure by March 31, 2013.
Convert and align IPA’S to strategy for execution
Evaluate current business model and reshape it so structure and operational plan can be aligned.
Balance target rounds and pricing for 2013
Grow membership from 974 to 1250 by January 2015
Strategic PlanStretch Goals 2017
Develop a sustainable business model that will produce cash reserves of R8 million in 10 years time 2022
A balanced value offering including a top quality golf course (Top 40 in rankings) and recreational facilities.
Maintain an optimal number of rounds of golf per annum 48-50,000 per annum
Optimise returns through a professionally driven management structure with succession planning as a key component.
Thanks Club Management
Outsourced Partners
Sports Committees
Product Committee
Finance Committee
Executive Committee
You the members
Completeness of sales in bowls club
Revaluation of Assets
Removal of completeness of cash sales in the golf club qualification
AFS Qualification
Qualifications should fall away in 2015
Raised by the auditors due to the loss and insolvent position
Operating profit of R818,760
Insolvent position due to COJ Account
Emphasis of Matter
Extreme level of comfort about the clubs future as a going concern
Historical Arrears of R3m
Following 3 years of attempted engagement we took the matter to Court
They offered a settlement of half which we declined
Confident there are little to no arrears
Utility Account City of JHB
A positive settlement will immediately move us into a solvent position
Completely outsourced this 2 years ago
Did not include in 2012 financials
Still trade under our entity so included in 2013 AFS
Will resolve with them on 2014
Bowls and Tennis
Query issued by SARS to all Clubs in 2013
Have submitted a response explaining our position and rejecting any tax liability
We expect an assessment
Deemed it prudent to raise a provision.
Tax
Financial results2013 2012
Total revenue 13,251,233 12,966,357
Total expenditure -13,262,493 -12,480,952
Operating profit/loss -11,260 485,405
Net finance charges -57,160 -94,949
Taxation -15,532 0
(Loss)/profit for the year -83,952 390,456
Financial results2013 2012
Total revenue 13,251,233 12,966,357
Total expenditure -13,262,493 -12,480,952
Operating profit/loss -11,260 485,405
Net finance charges -57,160 -94,949
Taxation -15,532 0
(Loss)/profit for the year -83,952 390,456
Adding back dormant creditors -195,828 0
Reconciling and balancing control accounts 1,098,540 0
Operational profit per MMAs 818,760 390,456
ADDING BACK DORMANT CREDITORS
- Amounts due to creditors since 2010- No claims from any creditors or statements being produced- Possibility this was previously expensed twice, once raising creditor and once when payment made and not offset against creditor
RECONCILING AND BALANCING CONTROL ACCOUNTS
- Control accounts set up to balance cash receipts/payments to billing/invoices (historically not reconciled)- Rolling errors affecting 2013 and multiple previous years
- Accounts affected * Amounts received in advance (R370,859) (some 2013 subs apportioned to 2012) * Amounts paid in advance (R350,395) (Affiliation and handicap fees debit to this acc and not cleared) * Prepaid and voucher control accounts (R377,286) (Including member cards loaded and amounts not reconciled)
Financial results2013 2012
Total revenue 13,251,233 12,966,357
Total expenditure -13,262,493 -12,480,952
Operating profit/loss -11,260 485,405
Net finance charges -57,160 -94,949
Taxation -15,532 0
(Loss)/profit for the year -83,952 390,456
Rendering of services 9,385,417 10,400,556
Golf cart rental 1,343,852 1,043,354
F&B by members 1,106,885 619,603
Non-related golf income 346,718 292,425
Insurance claims 179,768 268,820
Sale of goods 722,551 0
Other 166,042 341,599Sale of goods relate to Bowls and Tennis
Related expenditure R729,215
Financial results2013 2012
Total revenue 13,251,233 12,966,357
Total expenditure -13,262,493 -12,480,952
Operating profit/loss -11,260 485,405
Net finance charges -57,160 -94,949
Taxation -15,532 0
(Loss)/profit for the year -83,952 390,456
Employee cost 3,884,171 3,612,415
Admin and mngt fees 1,145,336 994,620
Municipal charges 1,053,226 991,516
Machine and equip rental 913,711 1,154,537
Golf course maintenance 628,841 1,174,760
Bowls and Tennis Clubs exp 729,215 0
Excluding bowls and tennis exp(offset against income)INCREASE IN EXPENDITURE 0,4%
Financial position2013 2012
PPE – fixed assets 3,263,115 3,859,252
Inventories 24,106 0
Trade and other receivables 718,649 423,396
Cash and cash equivalents 425,394 645,504
TOTAL ASSETS 4,431,264 4,928,152
Equity -2,281,050 -1,557,080
Other financial liabilities
Non-current 794,947 1,098,902
Current 321,852 467,635
Current tax payable 15,532 0
Trade and other payables 5,579,983 4,918,695
TOTAL EQUITY & LIABILITIES 4,431,264 4,928,152
Reduction in PPER640k revaluation reduction in equity
Bowls bar
Financial position2013 2012
PPE – fixed assets 3,263,115 3,859,252
Inventories 24,106 0
Trade and other receivables 718,649 423,396
Cash and cash equivalents 425,394 645,504
TOTAL ASSETS 4,431,264 4,928,152
Equity -2,281,050 -1,557,080
Other financial liabilities
Non-current 794,947 1,098,902
Current 321,852 467,635
Current tax payable 15,532 0
Trade and other payables 5,579,983 4,918,695
TOTAL EQUITY & LIABILITIES 4,431,264 4,928,152
Trade and other receivables
181,045
21,51045,525
415,963Other debtorsPayment in advanceGolf daysCorporate members
Bowling club R24kGuvon R151kNedbank R30kPMG R179kTennis club R7k
Debtors by end of January 2014 was R189,226.
Financial position2013 2012
PPE – fixed assets 3,263,115 3,859,252
Inventories 24,106 0
Trade and other receivables 718,649 423,396
Cash and cash equivalents 425,394 645,504
TOTAL ASSETS 4,431,264 4,928,152
Equity -2,281,050 -1,557,080
Other financial liabilities
Non-current 794,947 1,098,902
Current 321,852 467,635
Current tax payable 15,532 0
Trade and other payables 5,579,983 4,918,695
TOTAL EQUITY & LIABILITIES 4,431,264 4,928,152
Financial liabilities
1,116,7
99
3,114,826
416,042
898,596
1,135,5
19
Special m/shipCoJClub funds/control accountsSubs received in advanceOther payables
Financial liabilities
1,116,7
99
3,114,826
416,042
898,596
1,135,5
19
Special m/shipCoJClub funds/control accountsSubs received in advanceOther payables
2014 subs
received in
2013
* Captain/Trophy fund R111k * Ladies golf R75k* Vouchers held by members/visitors R42k* Prepaid cards R70k * Affiliation fees R59k* Guvon function funds paid into RCC R35k* Handicap fees R24k
* PAYE/Prov fund R92k* Trade payables bowls and tennis clubs R102k* VAT R268k* Trade payables golf R673k
Trade creditors end January 2014 R238,716 None due in excess of 60 days
Financial results YTD Feb 2014
Actual Budget
REVENUE 2,239,813 2,250,443
Golf turnover 1,110,263 1,176,017
Subscriptions 735,757 730,712
Other income 393,793 343,714
EXPENDITURE -2,261,231 -2,227,802
SURPLUS/(LOSS) YTD 2014 -21,418 22,641
BEYOND 2013 - results
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
Actual resultBudgeted resultActual 2013 (before ye adj)
Trailing budget by R44k
In Summary
Operating profit maintained and improved
Financial Controls Improved and AFS Qualification lowered
Lease, SARS, Creditor Arrears fully resolved
Utilities – Close to full resolution which will return us to a solvent and accumulated surplus position
Strategic and Operational Plan in place against which performance can be objectively monitored and measured
We are in a very good space
Executive Committee Responsibilities
PurposeThe Executive Committee is responsible for the management of all affairs of the Club.Broad Functions:
•Finance•Personnel•Administration•Marketing•Capital and Resources•Outsourced Arrangements•Strategic planning & Risk management•Membership growth and retention•Management of Assets•Club Constitution•Governance including oversight of the functioning of all sub-committees