GABRIOLA GOLF & COUNTRY CLUB

 

Financial Statements

 

September 30, 2005

 

(Unaudited)

 


GABRIOLA GOLF & COUNTRY CLUB

 

Table of Contents

 

 

 

                        Review Engagement Report                                                                            3.
                       

                        Statement of Financial Position                                                                      4.

                        Statement of Changes in Net Assets                                                               6.

 

                        Statement of Operations                                                                                7.

 

                        Statement of Cash Flows                                                                               8.

 

                        Notes to Financial Statements                                                                        9.




 


REVIEW ENGAGEMENT REPORT

 

 

 

 

TO THE MEMBERS, GABRIOLA GOLF & COUNTRY CLUB;

 

I have reviewed the statement of financial position of the Gabriola Golf & Country Club as at September 30, 2005 and the statement of changes in net assets, operations and cash flows for the year then ended.  My review was made in accordance with Canadian generally accepted standards for review engagements and accordingly, consisted primarily of enquiry, analytical procedures and discussion related to information supplied by management

 

A review does not constitute an audit and consequently I do not express an audit opinion on these financial statements.

 

Based on my review, nothing has come to my attention that causes me to believe that these unaudited financial statements are not, in all material respects, in accordance with Canadian generally accepted accounting principles.

 

 

 

 

 

 

 

                                                           

Christine Purfield, CGA

Purfield & Company

Certified General Accountant

 

 

 

 

 

 

Gabriola, B.C.

November 7, 2005

 

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                                                                                                                                                         4.

 

GABRIOLA GOLF & COUNTRY CLUB

STATEMENT OF FINANCIAL POSITION

September 30, 2005

(with comparative figures for September 30, 2004)

 

                                                                                                                    2005                2004

ASSETS

Current Assets

            Cash                                                                                        $       6,322      $          ----
            Accounts receivable                                                                           1,050               3,375
            Inventories (Notes 1(a) and 2)                                                         14,385             35,088
            Prepaid expenses                                                                               6,034               6,171
                                                                                                                   27,791             44,634


Restricted cash (Note 3)                                                                                   666                  666
                                                                                                                   28,457             45,300
Capital Assets (Note 1 (b) )

                                                                                   Accumulated
                                                                  Cost           Amortization
           

            Fairways and greens                 $   286,622      $   152,780           133,842           141,008
            Buildings                                        139,714           113,412             26,302             28,879
            Maintenance & Equipment             149,794           118,402             31,392             11,078
            Furniture and fixtures                       48,204             35,264             12,940             14,579
            Rental equipment                             30,099             29,625                  474               1,423

            Driving range                                     6,719               6,705                    14                  236

                                                                 661,152           456,188           204,964           197,203

                                                                                                            $   233,421      $   242,503

 

 

 

 


 

                                                                                                                                                         5.

GABRIOLA GOLF & COUNTRY CLUB

STATEMENT OF FINANCIAL POSITION

September 30, 2005

(with comparative figures for September 30, 2004)

 

                                                                                                                    2005                2004

LIABILITIES & NET ASSETS

 

Current Liabilities

            Bank overdraft                                                                         $          ----      $     20,908

            Accounts payable                                                                            10,606             10,035
            Prepaid membership dues                                                                56,671             55,525
            Accrued lease payable                                                                     11,523             10,691
            Provincial sales tax payable                                                                   882                  866
            Employee deductions payable                                                            2,509               2,518
            Goods & services tax payable                                                            4,000               5,038
            Contracted liabilities (Note 5)                                                          13,570                  ----
            Current portion of long term debt                                                       4,376                  ----
                                                                                                                 104,137           105,581
            Long-term debt (Note 7)                                                                 13,093                  ----
                                                                                                                 117,230           105,581
NET ASSETS
            Net Assets                                                                                    116,191           136,922

                                                                                                            $   233,421      $   242,503

 

 

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6.

GABRIOLA GOLF & COUNTRY CLUB
STATEMENT OF CHANGES IN NET ASSETS

Year ended September 30, 2005
(with comparative figures for the year ended September 30, 2004)

 

                                                                                                                                2005                2004       

                                                                            Invested in
                                                     Restricted      Capital Assets  Unrestricted

Net assets,

      beginning of year                 $     13,349       $  197,199       $(   73,626 )     $  136,922      $   165,618
Purchase of Capital Assets                    ----             24,175         (   24,175 )                ----                  ----
Excess (deficiency) of
      revenues over expenses               5,355         (   16,410 )       (     9,676 )       (   20,731 )    (     28,696 )
Net assets, end of year             $     18,704       $  204,964       $( 107,477 )     $  116,191      $   136,922

 

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7.

GABRIOLA GOLF & COUNTRY CLUB
STATEMENT OF OPERATIONS

Year ended September 30, 2005
(with comparative figures for the year ended September 30, 2004)

                                                                                                                    2005                2004

Sales                                                                                                                                            
            Food and beverages                                                                 $     46,728      $     41,422
            Golf supplies                                                                                    21,821             30,960
            Liquor                                                                                             56,330             50,850

                                                                                                                 124,879           123,232
Cost of Sales                                                                                             75,378             66,254

Gross Margin                                                                                            49,501             56,978

Other Revenues (Note 4 )                                                                      249,892           239,716
Total Revenue
                                                                                        299,393           296,694

 

Administration expenses
            Accounting and legal                                                                          3,170               2,572
            Advertising                                                                                        3,033               1,914
            Amortization (Notes 1 (b))                                                               16,410             17,001
            Automobile                                                                                        1,177               1,502
            Clubhouse maintenance and supplies                                                  9,358             11,909
            Course maintenance                                                                         21,242             29,010
            Insurance                                                                                           6,323               5,680
            Interest and bank charges                                                                  6,032               5,086
            Licenses and memberships                                                                 1,303               1,349
            Management fees                                                                             49,853             49,743
            Office and miscellaneous                                                                    5,649               6,794
            Power cart expenses                                                                          3,731               3,747
            Property lease (Note 5)                                                                   59,102             58,157
            Property Taxes                                                                                  7,766               8,159
            Social Events                                                                                        452               1,116
            Telephone                                                                                         2,860               2,884
            Travel                                                                                                   567               3,002
            Utilities                                                                                            13,356             12,496

            Wages and benefits                                                                          95,170           103,269

 

                                                                                                                  306,554           325,390

Deficit from operations before extraordinary expense                    (       7,161 )      (     28,696 )
Extraordinary expense (Note 5)                                                       (     13,570 )                 ----
Deficit of revenues over expenses                                                   $(    20,731 )     $(    28,696 )

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8.

 

GABRIOLA GOLF & COUNTRY CLUB
STATEMENT OF CASH FLOWS

Year ended September 30, 2005
(with comparative figures for the year ended September 30, 2004)

                                                                                                                    2005                2004

Cash provided by (used in)
Operations
            Excess (deficit) of revenues over expenses                                $(    20,731 )    $   ( 28,696 )
            Add (deduct) items not affecting working capital                                                                 
            Amortization                                                                                    16,410             17,001
            Net change in non-cash working capital                                            38,257           (   7,066 )
Net cash change from operations                                                                 33,936            ( 18,761 )
Investments
           
Capital asset purchases                                                              (     24,175 )         ( 25,504 )
            Restricted cash                                                                                     ----             20,010
Net cash change from investing                                                             (     24,175 )          (   5,494 )
Financing
           
Loan proceeds                                                                                19,149                  ----
            Repayments                                                                              (       1,680 )                ----
Net cash change from financing                                                                    17,469                  ----
 Increase (decrease) in cash                                                                     27,230           ( 24,255 )
Cash, beginning of year                                                                      (     20,908 )             3,347
Cash (bank indebtedness), end of year                                            $       6,322       $   ( 20,908 )


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9.

GABRIOLA GOLF & COUNTRY CLUB

Notes to Financial Statements

Year ended September 30, 2005

 

 

The Gabriola Golf and Country Club is a Society incorporated under the laws of British Columbia.  It was established to maintain and conduct a golf course, clubhouse and other recreational conveniences for the pleasure, accommodation and enjoyment of members and their guests.  The Society is exempt from income tax as a non profit organization.

 

NOTE   1.  SIGNIFICANT ACCOUNTING POLICIES:

(a)       Inventory is valued at the lower of cost and net realizable value.

 

(b)      Capital assets are recorded at cost.  Amortization is recorded on a straight line basis over the number of years noted below.  One half of the normal rate is taken in the year of acquisition.

                       Driving range                               5 years

                       Furniture                                      10 years

                       Maintenance equipment               10 years

                       Rental equipment                         5 years

                       Buildings                                      20 years

                       Fairways and greens                    40 years

 

(c)       The Society follows the deferral method of accounting for contributions.  Sales are recognized in the fiscal period in which they occur.  Donations are recognized in the fiscal period in which they are received.

 

(d)      Prior year figures, which were prepared by another accountant, have been reclassified where applicable to conform to current presentation.

 

NOTE   2.  INVENTORY:

Inventory consists of the following:

        Food and confection                                                   $          987      $       2,237
        Pro shop                                                                              5,863             24,881
        Bar and beverages                                                               3,447               3,893
        Course supplies                                                                    4,088               4,077
                                                                                           $     14,385      $     35,088

 

NOTE   3.  NET ASSETS RESTRICTED FOR CAPITAL ASSET PURCHASES:

 

The Society’s lease requires that all initiation fees received by the Society be placed into a capital account to be used only for capital expenditures subject to the approval of the lessor.  The net assets restricted for this purpose at September 30, 2005 total $18,704 (2004 $13,349), however, due to cash flow difficulties, some of the cash required to be set aside for this purpose has been used to pay operating expenses.  As at the balance sheet date, the cash available in the capital account totals $666.

 

NOTE   4.  OTHER REVENUES:

 

                                                                                                       2005                  2004

Commissions and miscellaneous                                          $          271      $       1,143
Donations and Grants                                                                  2,599               3,215
Green Fees                                                                                71,300             75,202
Hall, equipment rentals and driving range                                    27,699             32,151
Initiation fees                                                                               5,355               5,250
Membership fees                                                                     109,752           110,380
Special levy (Note 6)                                                                 28,166             12,375
Sale of asset                                                                                4,750                  ----

                                                                                                             $  249,892        $  239,716

NOTE   5.  COMMITMENTS:


      In 1998 the Society entered into a lease of lands on which the golf course is situated.  The lease covers a term of twenty-one years with an option to renew for a further twenty-one years at the end of the term.  The major terms and conditions are eligible for                            review every seven years at the option of either the lessor or the lessee.  The lease                                              requires that annual rental be paid in the amount of 18% of certain gross revenue.  The                                           land reverts to the lessor upon expiration of the lease.

 

      The Society has a liability in the amount of $13,570 under a contract with the former Manager of the Club.  Three payments of $4,228.18 plus GST are scheduled to be paid November 1st and December 1st, 2005 and January 1st, 2006.



NOTE   6. SPECIAL LEVY

 

Members were assessed a levy of $150 per member during the year to assist with Club expenses.

 

NOTE   7.  LONG-TERM DEBT

During the year the Society borrowed the sum of $19,149 to assist with the purchase of a capital asset.  The loan is amortized over 5 years at a rate of 5% compounded semi-annually.  Semi-annual payments of $2,187.97 are required in March and September of each year.

 

Estimated principal repayments to the end of the term are as follows:

                  2006       3,548                        2009      4,114
                  2007       3,727                        2010      2,135
                  2008       3,916

Security for the loan is the purchased asset, a Kubota tractor.

 

 

- Prepared without audit/See review engagement report -

 

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