GABRIOLA GOLF & COUNTRY CLUB
September 30, 2005
(Unaudited)
GABRIOLA GOLF & COUNTRY CLUB
Table of Contents
Statement
of Financial Position 4.
Statement
of Changes in Net Assets 6.
Notes to Financial Statements 9.
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.
Purfield & Company
Certified General Accountant
Gabriola, B.C.
November 7, 2005
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4.
September 30, 2005
(with comparative figures for
2005 2004
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
September 30, 2005
(with comparative figures for
2005 2004
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
(with comparative figures for the year ended
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
7.
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
(with comparative figures for the year ended
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.
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
$ 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
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 -