Sanctuary Lakes CLUB
Annual Report 2010/11
Sanctuary Lakes Club Limited
Address
Greg Norman Drive, Sanctuary Lakes Resort (off Point Cook Road)
Sanctuary Lakes Victoria Australia 3030
Phone
Fax
+61 3 9395 2888
+61 3 9395 2988
Email
Web
[email protected]
www.sanctuarylakes.com.au
sanctuary lakes club
Contents
Corporate Information 1
Chairman’s Review 2
Key Personnel 4
ClubLINKS Management Report 6
Golf Operations Report 8
Golf Committee Report 10
Financial Summary Report 14
Sanctuary Lakes Club Limited Audited Accounts
16
1
Corporate Information
Directors
Stephen Head
(Chairman)
Colin Cass
Ken Roche AO
Nicholas Roche Company Secretary
Susan Quill
Registered Office
c/o PGA National Office
600 Thompsons Road
Sandhurst Victoria 3977
Main Business Address
Greg Norman Drive
Sanctuary Lakes Victoria 3030
Auditors
Stannards Accountants and Advisors Pty Ltd
Level 1, 60 Toorak Road
South Yarra Victoria 3141
Managers
ClubLINKS Management Pty Ltd
Number of Employees
Sanctuary Lakes Club Limited
46
Annual Report 2010 /11
Chairman’s Review
I am pleased to present the 13th Annual Report for Sanctuary Lakes Club Limited (“the Club”).
This year’s Annual Report reflects a milestone in the life of the Club. Not only is it the first time that the Club
has published its own Annual Report independently of SLRA, but also this will be my last Chairman’s Review
as we transition from a developer controlled Club to a member controlled Club.
Members will know that in the lead-up to Transition, with assistance from the Golf Advisory Committee, the
Board developed and adopted a Business Plan which achieved financial stability following the Developer’s exit
whilst at the same time protects the Members’ interests in and enjoyment from the Club. The Business Plan
was based upon three important cornerstones:
1. several of the Club’s activities are outsourced to 3rd parties;
2. surplus Club land would be sold for residential development; and
3. aggressively selling 100 Gold Memberships in the 2011/12 year.
To this end in October, after a thorough Tender process, the House of Golf commenced as the Club’s golf
operator. Also, a syndicate involving Club Member Rob Merola and Sanctuary Lakes resident Nick Puopolo will
in the future be providing Hospitality services at the Club.
The Board is confident that the House of Golf’s appointment will give rise to an outstanding level of service for
Members and, at the same time, a vital financial return to assist the Club in attaining financial stability. Rob and
Nick’s appointment was an especially important one, providing the Club with additional capital works within the
Clubhouse and another sustainable return to assist sustain the Club’s profitability after the Developer exits.
2
Selling 100 new Gold Memberships is the 3rd and perhaps the most challenging of the Business Plan’s new
initiatives. After consultation with the Manager and having regard for the state of the Golf market around the
country (including reference to sales of Club Memberships on the secondary market, via Ebay) the Board
formed a view that a revised pricing regime was necessary to achieve the sales target and inject vital new
Membership subscription income. A lot of work remains to be done to introduce 100 new Golf Members support of existing Members in referring friends as members, will be a critical success factor.
Last year, like all Victorian golf clubs, the Club suffered from the effects of extreme weather over the November
to February summer period. However, despite the flow on effect of this, there was an increase in the number of
golf rounds played on the Course during the year (in fact an additional 2559 rounds were played).
Notwithstanding the inclement weather, I am delighted to report that the Peter Jans and his team have
continued to ensure that our golf course is at its best, and the first class presentation of the Course has meant
that the Sanctuary lakes Club’s golf course has maintained its ranking in the Australian Golf Digest Rating
amongst the top 60 in Australia.
sanctuary lakes club
The Club also continued to maintain a high level of debt collection and managed to collect 94% of Golf
Subscription fees for the 2010/2011 financial year.
Our golf subscription fees for a 7 day member are now $2845 for ‘Gold’ category and just $2980 for two
player ‘Diamond’ category members, both substantially smaller increases than previous years. Overall these
fees when compared to the average for Tier 1 and Tier 2 courses in Melbourne still show that Sanctuary Lakes
Club is, in effect approx 10%-25% cheaper than clubs with very similar amenities and facilities.
On behalf of the Board, golf members and residents I would like to thank the ClubLINKS management teams
under the leadership of Mark Brayshaw, and the Golf Committee under the leadership of Noel Caulfield, Stuart
Todd and now Dermot Heron for their dedication and ongoing support in the development of the Club as we
move towards transition.
On behalf of my fellow Directors, we are all very proud to have been involved in the development of Sanctuary
Lakes Club and we wish the Club and its members all the very best for the future.
Stephen Head
Chairman
3
Annual Report 2010 /11
Key Personnel
PGA LINKS Management Pty Ltd
Chief Executive Officer
Mark Brayshaw
Chief Operating Officer
Nick Hanvin
General Manager - Golf Operations
Wayne Sutherland
General Manager - Course Operations
Peter Jans
Payroll Manager & HR Administrator
Melissa McCarthy
ClubLINKS Pty Ltd
General Manager - Finance & Administration
Cameron Davidson
General Manager - Information Technology
Kristy Chong
Sanctuary Lakes Club
Food and Beverage Manager
Peter Lyle
Functions Co-ordinator
Jessica Yong
Golf Services Manager
Jacqui Baker
Golf Operations Manager
Bruce Davies
Head Chef
David Woods
4
sanctuary lakes club
Annual Report 2010 /11
ClubLINKS Management Report
ClubLINKS Management provides golf management services for golf clubs throughout Australia and has
been involved at Sanctuary Lakes for many years. Together with ClubLINKS Pty Ltd, we are responsible
for the delivery of the day to day activities at Sanctuary Lakes Club, including Club administration, financial
management, billing and receipting, budget preparation, course maintenance, staff management, reporting to
the Board and planning.
During the last 12 months, our Management Agreement with the Club was significantly varied and we now
operate pursuant to a 12 month agreement for the purpose of implementing the Business Plan and facilitating
departure of the Developer and introduction of a new Board. To this end, great strides have been taken
towards transition to a Club Board populated by Club Members.
An enormous amount of work has taken place – involving Members, the Board, the Developer and the
Manager – developing the Club’s Business Plan and planning a smooth transfer of control. Therefore, it’s
timely to thank the Developer for steering the Club to date and recognise the superb facilities it hands over to
Members.
Reflecting upon the past 12 months, I wish to thank the Golf Advisory Committee and especially Noel
Caulfield, who tirelessly led the Golf Advisory Committee for most of the year, and more recently Stuart Todd
who stepped up to the role when Noel resigned. I also thank the Club’s staff, many of whom have worked
under the shadow of impending outsourcing. All Club Members are grateful for their hard work and appreciate
6
their commitment during such trying times.
I would also like to acknowledge and thank all volunteers and sponsors for their great support throughout
the year and also recognise the great support of Members who not only give up their course for the various
pennant competitions but actively support the players.
During the Financial Year, we worked very hard to introduce more new Members to the Club. Unfortunately,
the overall result was a decline in Membership, in line with the industry trend. With the Course often receiving
high praise for its presentation and playability it is imperative that the Club uses this competitive advantage
along to increase its membership base. Current Members are vitally important in achieving this turnaround
and without new Members the Club will not be able to provide the same level of services into the future.
With the Club in direct control of its own Board, the focus must be on attracting and retaining Members so the
Club’s membership base will continue to grow and enjoy Australia’s 66th best course!
The Developer will very shortly hand over control of the Club’s Board to Members. We are all working hard
towards the next phase in the life of Sanctuary Lakes Club.
Mark Brayshaw
CEO of ClubLINKS Management Pty Ltd
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7
Annual Report 2010 /11
Golf Operations Report
The highlight of the golfing year at Sanctuary Lakes was undoubtedly the continued improvement to the golf
pennant teams. To have two teams in the highest possible divisions in the golfing mecca that is Melbourne is
an outstanding achievement and all Members can be very proud of this.
The Golf Operations Department did not achieve the financial budget in the period in review. The main
contributors to this negative variance were below budget green fee revenue, especially non member guest
or ‘visitor’ rounds, and corporate golf. Pricing of general non member access was increased compared to
previous years and were not seen by the market as being as attractive. This feedback will be crucial for future
strategies and campaigns. Due to this reduced green fee income, there was a flow on effect as associated
spend on hire equipment (carts and clubs), as well as merchandise were also below budget.
Membership numbers were impacted by the necessary decision by Club Management to effectively withdraw
membership rights from a number of Members who were long term debtors to the Club. In effect, the number
of members deactivated by Club Management in a large clean up of the membership directory was slightly
greater than the total new memberships sold, resulting in the first net loss of members experienced by the
Club. This ‘tidying up’ of the Club’s rmembership base will see a more reflective membership utilising the
facility, and early signs for membership growth in the new membership year look good.
31,472 rounds were played on the Course during the year, representing an increase of 2559 rounds. The
additional rounds were made up of increased member guest rounds as well as increased utilisation by
Members themselves. Whilst the yield on non member rounds (green fee rounds) was lower than budgeted,
the number of rounds played increased from previous years as a result of a number of programs. In the last
two years, the Course has seen an increase of nearly 5000 rounds played, which is important as Management
seeks to increase the percentage of tee time utilisation. The 56% of tee times available being used is still
approx 7% below budget, leading to greater opportunities for the Course to be used whilst not impacting on
Member play.
8
I would like to thank the Golf Operations staff for their hard work and dedication during what was a difficult
year.
In closing we would like to congratulate the following Members who have won major events in the 2010/2011
year in review.
Wayne Sutherland
General Manager - Golf Operations
For and on behalf of ClubLINKS Management Pty Ltd
sanctuary lakes club
2010/11 Major Event Winners
Monthly Medal Winners
2010
2011
July
Keith Seabrook
January
Liam Hughes
August
Jiah Faclke
February
Joel Betram
September
Brett Carey
March
Ken Wilson
October
Stephen Gateley
April
James Pattison
November
Stephen Gateley
May
James Frost
December
Liam Hughes June
Kylee Alderton
Medal of Medalists 2010
Rob Marlais
Club Champions
Mens Club Champion
Travis Sharpe
Ladies Club Champion
Chloe McSaveney
B Grade Champion
John Fabbian
Junior Club Champion
Jared Sharpe
C Grade Champion
Trevor Hillier
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Foursomes Champions
Mens
Jack Marlais & Rob Marlais
Ladies Chloe McSaveney & Kath Griffith
Mixed Brett Mackie & Kath Griffith
Matchplay Champions
A Grade David Marchino
C Grade Gianni Carraro
B Grade
Kevin Birtles
Ladies
Kerry Hansford
Links Trophy Winner
Mark Grimsditch
Hole in Ones
2011
Alan Guesmundo 5th March
11th Hole
Fred Camilleri
2nd Hole
31st August
Cain Mcgregor
17 September
6th Hole
Annual Report 2010 /11
Golf Committee Report
The last year has taken us on our continuing journey towards transition . As with all journeys, the paths are not
always clear and not always smooth. There have been many challenges this year and some have been easier
to overcome than others. Despite these challenges we are another year closer to the major event in the history
of our Golf Club, that of the transition from a Developer Board to that of an elected Golf Club Board and self
management.
Golf Course
The Golf Course has gone from strength to strength in terms of condition. This is due in no uncertain terms to
the outstanding work by the greens staff. The delivery of the recycled water has and will continue to be a benefit
to the Course, especially as we move into the warmer weather.
The old adage of “never being able to please all of the people all of the time” is very true of our Course. On
one hand we want the Course to be a tough and challenging Course that will continue to test the best of our
golfers. Yet on the other hand we also would like it to an enjoyable Course for those of us less gifted with the
use of our golf clubs.
Throughout the year there have been many comments regarding the length of the rough, the amount or even
type of sand in the bunkers, the speed of the greens, the positioning of the pins as well as other less frequent
comments. But when you consider our ranking as a Course within Australia, surely it should be something to be
proud of mentioning, whether it is that “I shot 4 under my handicap” or that “I lost 6 balls the last time I played”.
Each statement can be followed by the words “On Australia’s 61st Ranked Golf Course”.
As was mentioned in last years Annual Report we would like to thank the ground staff for their commitment to our
great Golf Course and particularly to Peter Jans and Brett Hawkey who not only work tirelessly but are extremely
patient in responding to the never ending stream of questions posed by Members and the Committee.
10
Pennant
The 2011 Pennant season was another outstanding year for the Sanctuary Lakes senior pennant team. They
competed in Division 2 for the first time and ended up winning the Division 2 final against Kingston Heath 5
matches to 2. This qualifies them to compete in Division 1 next year, which is an outstanding achievement for a
club that has only played pennant golf for 10 years.
Our Colts team played in Division 1 for this first time in 2011 and finished 5th - narrowly missing out playing in
the final by losing their last match of the season to Yarra Yarra.
With both our Seniors and Colts team in Division 1 next year ,Sanctuary Lakes will be only one of four clubs in
the state to have both sides in Division 1.
Sanctuary Lakes also competed in Junior Pennant, Ladies Metropolitan Pennant and North West Region
Pennant in the past year with mixed results.
Congratulations and thanks to all the players, managers, caddies, supporters and of course the sponsors of all
pennant teams who either represented or supported Sanctuary Lakes this year and we look forward for another
successful year in 2012.
A Special Congratulations also goes to Travis Sharpe who represented the Victorian Colts State team for the
first time in 2010.
sanctuary lakes club
Membership
The new membership drive that was put in place last year was on the whole a success, even if it did fall a little short of the
intended target number.
When all of the other elements going on within the Club structure and management are completed, the membership level
required should be a much simpler equation to work out.
Nevertheless, the fact will remain that the major form of income for the Club will be in member subscriptions and if those do not
cover the remaining outgoings after any profit or loss from Golf Operations or Hospitality have been accounted for, then we will
be left with two simple options; either increase member subscriptions or increase membership numbers.
Of course, the better option for all would be to increase the membership numbers, but only if required and certainly only up to
the maximum capacity the course can sustain in terms of available tee times.
The ‘churn’ element is still an important element and anything that can be done to reduce this figure will be beneficial to all.
However, there is still no one clear reason for people to leave the Club, and it would be wrong to change things continually to
satisfy a minority when any such changes may result in others leaving.
Advisory Committee
The restructuring of the Golf Advisory Committee (GAC) last year certainly worked well as far as the allocation of work into the
various sub committees. Each of the sub committees carried out the tasks allocated to them and dealt with any issues raised,
or brought them to the main GAC meetings for ratification if required.
If we look back over the year then as with any organization we can see areas that can be improved upon. The main one of these
is that of communication with the membership base. Moving forwards this will be improved upon, as it is essential that we learn
from our past mistakes and apply a mindset of continuous improvement, not only in areas of communication but in all aspects
of managing the Golf Club despite its complexities.
The composition of the GAC has now dropped down to three. The resignation of Noel Caulfield as President along with the
resignations of Geoff Walsh, Mark Curnow and Damien Gnezda has certainly been felt by those remaining but heartfelt thanks
must be given for the amount of work that they each put in during their time. Also, we have now lost Joe Matina, whose tenure
is now up and due to other work commitments will not be standing for re-election. Joe was a great asset to the GAC as his
accounting skills were put to good use for the majority of his time on the GAC.
The absence of any of our womens members on the GAC is still disappointing as their perspective and input would be a great
asset.
We now await the results of the imminent election process so we can move forward toward transition with clear goals and
responsibilities. As we currently stand, we have three members to the GAC, Rob Marlais, Stewie Gray (our Club Captain) and
myself, Stuart Todd as interim President.
Annual Report 2010 /11
11
Golf Committee Report Cont.
Transition
Transition is now on the very near horizon. It was hoped last year that we would, by now, have in the wings, a
nominee Board made up from Members with the required skill set and time, as well as a developed business model
to ensure the successful running of Sanctuary Lakes Golf Club ready to take over from the Developer Board.
This however has not yet eventuated and as such the Developer Board, who have always made it clear their
intentions to exit from their role later this year, have now re-engaged ClubLINKS Management to work on a
business model that takes into consideration the outsourcing of both Golf Operations and Hospitality, as well
as all other income and expenditure streams, with a view to handing over Board control to Members at the
upcoming AGM on 14 December 2011.
The Developer
As previously mentioned, the current members of the Board have made clear their intention to shortly vacate
their positions and hand over the reigns to a Member controlled Board.
If we look back to the days when the area of land that we now call our Golf Course was nothing more than a salt
field and compare it to what it is now, then we have to recognize the work of many people and organizations.
Not least of those would have to be the Developer. They have made many contributions to the Club, including
many much needed financial contributions that enabled the Club to keep functioning and growing in stature to
the current Golf Course Ranking mentioned before.
But as with most things in life, change is a necessity and aside from the change from salt field to golf course,
this change will probably be the biggest for Sanctuary Lakes Golf Club. Let us all work together to ensure it is
as successful.
12
Management
With the transition of the Developer Board to a Member representative Board imminent, the impending
outsourcing of both Golf Operations and Hospitality, Management is currently also working on the contracts and
management model that will enable the Club to operate smoothly and profitably into the future. A vast amount
of this work has been undertaken with a large amount of input from the Golf Advisory Committee, although
ultimately the final say is of course with the current Board.
Ladies Golf
Drawing from a small pool of ladies, the 2010/2011 financial year proved to be very successful for a number of
Sanctuary Lakes ladies who have achieved rewards for their persistent efforts in VGA competitions locally and
state-wide.
The shortage of ladies playing golf at Sanctuary Lakes continues to provide a challenge for those trying to construct
teams of seven for the VGA Sunday Metropolitan Pennant played in March every year and the North West Region
Ladies’ Handicap Matchplay played over five weeks on a Monday in August/September each year.
The interest from junior females joining our club is of some concern as we are finding that the junior girls move
on to golf programmes at outside clubs.
Ladies Golf Day on Tuesdays is largely driven by the unofficial “Ladies Golf Committee” made up of Bronwyn
Rodda, Sue Raggatt and Mel Parker. An average of 12 ladies play in the competition of the day. Bendigo Bank
sponsors not only the NTP for these days, but also the Sanctuary Lakes Ladies’ Guest Day.
The Tuesday ladies manage to find two lady representatives at Sanctuary Lakes to play in all the North West
District clubs’ President and Captain’s days. As reciprocity to the North West clubs, the Ladies Golf Committee
conducts the Sanctuary Lakes Ladies’ Guest day.
A few ladies play in the Weekend competitions of the day but more play in the well planned Mixed Golf events
that are run on one or sometimes two Sundays in the month. The mixed competition has been driven by Andrea
Pugh over the past two years.
sanctuary lakes club
The VGA conduct a North Western Region club delegates meeting every quarter and Sue Raggatt represents
our club at these meetings. These meetings keep the ladies up to date with what is happening in our region and
with any issues that arise within the pennant area or competitions. Sue also represents the club at any meeting
the VGA arranges for ladies from all the metropolitan clubs.
Notes on achievements by our female players:
• Kathleen Griffith was runner up in the Mid Amateur Averages trophy in Victoria for 2010-2011.
• A
Sanctuary Lakes team was successful in the Ladies Holden Scramble Event held at Sanctuary
Lakes. The team will play in the Victorian final.
• T
he Doris Chambers Cup and the Royal Women’s Hospital competitions are two VGA competitions
played during the year and Kerry Hansford and Andria Pugh were successful in both competitions.
They will go on to play on in the finals of these two events.
Foundation
The Sanctuary Lakes Foundation has continued to support and seek support for young achievers within the
Sanctuary Lakes community as well as the wider area of Point Cook, Werribee and the City of Wyndham.
A long term goal of the foundation was to have a capital operating base of $100,000. We achieved this goal
following another very successful Golf Day at which we raised almost $25,000. This was a brilliant result as
it followed a short time after Stacey Keating’s Golf Day, which was run by the Sanctuary Lakes Club with the
support of the Foundation and its members and a day which raised nearly $26,000 to assist Stacey in her
assault on the European Ladies Professional Golf Tour.
It is a credit to our corporate supporters, the Sanctuary Lakes Club, Sanctuary Lakes members and our major
naming rights sponsor The Bendigo Community Bank – Point Cook Branch, that a relatively new club, such as
ours, can achieve these outstanding results, given the current financial uncertainty.
Over recent years we have held two fund raising events, the golf day and a sportspersons lunch. We have
decided to have the one major fund raising event for the year, which will be the golf day (re-scheduled to late
October 2012) as, this allows us to take advantage of better weather conditions as well as giving our major
corporate supporters and the Members of Sanctuary Lakes, who generously pay to play on their own course, a
break from further financial outlay.
Over the last year the foundation has given grants of $18,000.
I would like to take this opportunity to thank the board of the Sanctuary Lakes Foundation, Graeme Glasson,
Allan Smith, Rob Marlais, Robert Merola and George Begg for their tireless work throughout the year.
I would also like to thank the Sanctuary Lakes Club, its staff and everyone who supported the foundation in
its efforts.
Conclusion
The next few months will be, as mentioned previously, a time of great change for the Club. However, it is my firm
belief that with the support of the Members, we can work along side the new Members Board and Management
Team to achieve the Business Plan that will be put in place to take our Club from the very strong position it is
currently in, to even bigger and better levels.
Stuart Todd
Interim President - Golf Committee
Annual Report 2010 /11
13
Financial Summary Report
Sanctuary Lakes Club Limited (“Club”) recorded an operating loss for the 2010/11 financial year of
$224,095 (the 2009/10 financial year experienced a loss of $192,531).
Charter Keck Kramer was engaged by the Directors to value the Golf Course and Clubhouse as at 30
June 2011. Their independent report valued the Golf Course and Clubhouse at $7,500,000 (ex GST).
This value was $4,183,040 less than the previous carrying value of these assets and an additional
expense of this amount was therefore recognised during the year, bringing the total loss for the year to
$4,407,135.
Overall, the revenues of the Club (excluding subsidies & SLRA revenues from the prior year) improved by
10% whilst expenditure increased by 7%.
The increases in revenues were primarily from Golf Subscription revenues increasing by $208,126 (17%)
when compared to the previous year. This increase was a result of an increase in subscription fees and a
net increase in the number of Club members.
Pie Charts are set out on the following page to illustrate the contributions of each department of the Club.
The Club collected 94% of Golf Subscription fees for the 2010/2011 financial year, down from 95% in
the prior year. All un-financial members were suspended during the year and memberships written off at
year end ensuring that the Club will start the new financial year with no recalcitrant members.
During the year the Club continued to rely on the assistance of the Project Developer to fund its
14
operations. The focus of Management has therefore been on creating a business plan and business
model which minimises the cost base in order to ensure the Club can operate profitably and sustainably
into the future, independently of the Project Developer. In a market where membership levels are
declining, Management needs to be particularly creative and diligent in order to achieve a profitable
operation.
Cameron Davidson
General Manager - Finance & Administration
For and on behalf of ClubLINKS Management Pty Ltd
sanctuary lakes club
Total Income by Department
For the year ended 30 June 2011
Developer Subsidy
23%
Food & Beverage
30%
Golf Operations
47%
Note: These allocations are arbitrary, and are provided as a guide for illustrative purposes only.
Total Expenses by department
For the year ended 30 June 2011
Course Maintenance
20%
Golf Operations
41%
15
Food & Beverage
31%
Management Fees
8%
Note: These allocations are arbitrary, and are provided as a guide for illustrative purposes only.
Annual Report 2010 /11
Sanctuary Lakes Club Limited
ACN 084 729 751
Audited Accounts
Concise financial statements for the year ending 30 June 2011
sanctuary lakes club
Sanctuary Lakes Club Limited
Directors’ Report
The Directors of Sanctuary Lakes Club Ltd submit herewith their report together with the accounts of the
Company for the year ended 30 June 2011.
The following persons were Directors of the Company during the whole of the financial year and up to the date
of this report:
• Stephen Head
• Ken Roche
• Nicholas Roche
• Colin Cass
Results
The operating loss of the Company for the financial year was $224,095 (2010: loss $192,531). An independent
valuation of the Golf Course Land and Clubhouse undertaken by Charter Keck Kramer as at 30 June 2011
resulted in an impairment of such Asset of $4,183,040 resulting in an overall loss for the year of $4,407,135.
Financial Position
Notwithstanding the working capital deficiency of the Company at balance date, the Directors are satisfied
that the entity is a going concern and can pay its debts as and when they fall due as a result of the proposed
development and sale of ten residential lots on Company land, and the finance facility arrangements with the
17
Sanctuary Lakes Joint Venture.
Principal Activities
The Company’s principal activities have been the operation of a golf club.
Dividends
Pursuant to Clause 5.1 of the Company’s Constitution, the Company cannot pay or declare dividends.
State of Affairs
On 1 July 2010 the Company restructured its affairs. Effective from 1 July 2010 the Company is only
responsible for golf operations, course maintenance and the operation of the clubhouse facilities at Sanctuary
Lakes Resort.
Likely Developments
In the opinion of the Directors, disclosure of information regarding likely developments in the Company’s
operations and the expected results of its operations in future financial years would prejudice its interests.
Directors’ Interests and Benefits
No Director of the Company has received or become entitled to receive any benefit (because of a contract
made by the Company or a related body corporate with the director, a firm of which the Director is a member
or a Company in which the Director has a substantial financial interest) other than:
(i) a benefit included in the aggregate amount of remuneration received or due and receivable by Directors;
or
(ii) amounts paid or payable as disclosed in the notes to the accounts.
Annual Report 2010 /11
Sanctuary Lakes Club Limited
Directors’ Report Cont.
Subsequent Events
The Company has entered into an arrangement with the Sanctuary Lakes Joint Venture to assist with the
development and sale of ten residential lots on Company land. On completion this should enable the Company
to repay its outstanding debt obligation to the Sanctuary Lakes Joint Venture and provide the Company with a
capital reserve of between $500,000 and $750,000.
Directors’ Meetings
The number of Directors’ meetings held and attended by each director of the Company during the financial
period were:
Number of Meetings
attended
Number of Meetings
held whilst in office
Stephen Head
3
4
Ken Roche
4
4
Nicholas Roche
3
4
Colin Cass
4
4
Other Matters
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There are no unissued shares under option as at the date of this report.
The Company has not, during or since the end of the financial year, in respect of any person who is or has
been an officer or auditor of the Company:
(i) indemnified them or made any relevant agreement for indemnifying them against a liability including
costs and expenses in successfully defending legal proceedings; or
(ii) paid or agreed to pay a premium for them in respect of a contract insuring against a liability for the
costs or expenses to defend legal proceedings.
Environmental Issues
The Company’s operations are believed to be in accordance with all significant environmental regulations
under a law of the Commonwealth or of a State or Territory.
Signed in accordance with a resolution of the Directors made pursuant to the Corporations Act.
On behalf of the Directors,
Stephen Head
Ken Roche
Chairman
Director
Dated 21 October 2011
Dated 21 October 2011
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19
Annual Report 2010 /11
20
sanctuary lakes club
Sanctuary Lakes Club Limited
Declaration by Directors
As detailed in Note 1 to the financial report the company is not a reporting entity because in the Director’s
opinion, there is unlikely to exist users who are unable to command the preparation of reports tailored so as to
satisfy specifically all of their information needs. This financial report is therefore a “Special Purpose Financial
Report” that has been prepared solely for the Directors and members of the Company.
The Directors of the Company declare that:
(i) The financial statements and notes present fairly the Company’s financial position as at 30 June 2011
and its performance for the year ended on that date in accordance with the Corporations Act 2001
and Accounting Standards as detailed in Note 1; and
(ii) Notwithstanding the working capital deficiency of the Company at balance date, the Directors are
satisfied that the entity is a going concern and can pay its debts as and when they fall due as a result
of the proposed development and sale of ten residential lots on Company land, and the finance
facility arrangements with the Sanctuary Lakes Joint Venture.
(iii)The financial statements have been derived from and are consistent with the Company’s full financial
report and AASB 1039: Concise Financial Reports.
21
On behalf of the Directors,
Stephen Head
Ken Roche
Chairman
Director
Dated 21 October 2011
Dated 21 October 2011
Annual Report 2010 /11
Sanctuary Lakes Club Limited
Statement of Comprehensive
Income
For the Financial Year ended 30 June 2011
2011
$
2010
$
Subscription Fees
39,198
182,727
Junior Subscription Fees
26,335
20,228
1,407,208
1,205,189
-
4,036,855
Developer Subsidy
1,169,699
578,900
Other Revenue from Ordinary Activities
2,360,966
3,372,953
879
2,327
5,004,285
9,399,179
(1,984,724)
(3,656,618)
(814,885)
(811,021)
(58,419)
(70,776)
(2,370,352)
(5,053,295)
(5,228,380)
(9,591,710)
(224,095)
(192,531)
-
-
Revaluation of Land Held
(4,183,040)
-
Total Comprehensive Income/(Loss) for the year
(4,407,135)
(192,531)
Member Entrance Fees
Owners Corporation Fees
Profit on Sale of Assets
Employment Costs
Cost of Sales
22
Borrowing Costs
Other Expenses from Ordinary Activities
Profit/(Loss) for the year
Other Comprehensive Income/(Loss) for the year
sanctuary lakes club
Sanctuary Lakes Club Limited
Statement of Financial Position
As at 30 June 2011
2011
$
2010
$
Cash & Cash Equivalents
319,646
64,284
Trade & Other Receivables
804,743
1,670,237
Inventory
133,076
176,626
1,257,465
1,911,147
Land and Buildings
8,417,979
12,633,457
Plant & Equipment
1,124,941
1,447,357
Total Non Current Assets
9,542,920
14,080,814
10,800,385
15,991,961
Current Assets
Total Current Assets
Non Current Assets
Total Assets
23
Current Liabilities
Trade & Other Payables
872,094
1,878,033
67,083
148,163
Financial Liabilities
2,334,209
283,433
Total Current Liabilities
3,273,386
2,309,629
16,661
28,177
Financial Liabilities
321,677
2,058,356
Total Non Current Liabilities
338,338
2,086,533
Total Liabilities
3,611,724
4,396,162
Net Assets
7,188,661
11,595,799
Members’ Surplus
7,188,661
11,595,799
Total Members’ Equity
7,188,661
11,595,799
Provisions
Non Current Liabilities
Provisions
Members’ Equity
Annual Report 2010 /11
Sanctuary Lakes Club Limited
Statement of Changes in
Members’ Equity
For the Financial Year ended 30 June 2011
Members’
Surplus
$
Balance at 30 June 2009
Profit / (Loss) attributable to members
11,788,327
(192,531)
Balance at 30 June 2010
11,595,796
Profit / (Loss) attributable to members
(4,407,135)
Balance at 30 June 2011
24
sanctuary lakes club
7,188,661
Sanctuary Lakes Club Limited
Statement of Cash Flow
For the Financial Year ended 30 June 2011
2011
$
Cash Flows from Operating Activities
Receipts from customers
2010
$
5,503,746
9,700,978
(5,325,522)
(9,793,227)
Interest paid
(58,419)
(70,776)
Net Cash from Operating Activities
119,805
(163,025)
Payments to suppliers and employees
Cash Flows from Investing Activities
Proceeds on Disposal of Assets
-
10,906
Equipment Finance Repayments
(366,819)
(254,141)
Plant and Equipment (Net of Lease Financed Assets)
(105,219)
(160,844)
Net Cash (used in) Investing Activities
(472,038)
(404,079)
25
Cash Flows from Financing Activities
Loan from National Australia Bank
-
(200,000)
Loan from Sanctuary Lakes Joint Venture
607,595
(500,000)
Net Cash (used in) Financing Activities
607,595
(700,000)
Net Increase/(Decrease) in Cash
255,362
(1,267,104)
64,284
1,331,388
319,646
64,284
Cash Held at the Beginning of the Financial Year
Cash Held at the End of the Financial Year
Annual Report 2010 /11
Sanctuary Lakes Club Limited
Notes To and Forming
Part of the Accounts
For the Financial Year ended 30 June 2011
1. Summary of Accounting Policies
Financial Reporting Framework
This concise financial report is a special purpose financial report prepared for use by the Directors and
members of the Company. The Directors have determined that the Company is not a reporting entity, and
therefore there is no requirement to apply all applicable accounting standards or other mandatory professional
reporting requirements in the preparation and presentation of this report. The information contained within this
concise financial report has been derived from and is consistent with the special purpose financial report of the
Company for the year ended 30 June 2011.
The full financial report was prepared in accordance with the requirements of the Corporations Act 2001, and
the following applicable Australian Accounting Standards and Accounting Interpretations:
26
AASB 107
Cash Flow Statements;
AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors;
AASB 110
Events after the Balance Sheet Date;
AASB 117
Leases;
AASB 1031
Materiality; and
AASB 1048
Interpretation and Applicable Standards.
No other Accounting Standards, Accounting Interpretations or other authoritative pronouncements of the
Australian Accounting Standards Board were applied.
New Accounting Standards for Application in Future Periods
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory
application dates for future reporting periods and which the Company has decided not to early adopt. A
discussion of those future requirements and their impact on the Company is as follows:
AASB 9: Financial Instruments (December 2010) (applicable for annual reporting periods commencing on or
after 1 January 2013).
This Standard is applicable retrospectively and includes revised requirements for the classification and
measurement of financial instruments, as well as recognition and derecognition requirements for financial
instruments. The Company has not yet determined any potential impact on the financial statements.
The key changes made to accounting requirements include:
• simplifying the classifications of financial assets into those carried at amortised cost and those carried
at fair value;
• simplifying the requirements for embedded derivatives;
• removing the tainting rules associated with held-to-maturity assets;
• removing the requirements to separate and fair value embedded derivatives for financial assets
carried at amortised cost;
• allowing an irrevocable election on initial recognition to present gains and losses on investments in
equity instruments that are not held for trading in other comprehensive income. Dividends in respect
of these investments that are a return on investment can be recognised in profit and loss and there is
no impairment or recycling on disposal of the instrument; and
sanctuary lakes club
• requiring financial assets to be reclassified where there is a change in an entity’s business model as
they are initially classified based on: (a) the objective of the entity’s business model for managing the
financial assets; and (b) the characteristics of the contractual cash flows; and
• requiring an entity that chooses to measure a financial liability at fair value to present the portion
of the change in its fair value due to changes in the entity’s own credit risk in other comprehensive
income, except when that would create an accounting mismatch. If such a mismatch would be
created or enlarged, the entity is required to present all changes in fair value (including the effects of
changes in the credit risk of the liability) in profit or loss.
AASB124: Related Party Disclosures (applicable for annual reporting periods commencing on or after 1
January 2011).
This standard removes the requirement for government-related entities to disclose details of all transactions
with the government and other government-related entities and clarifies the definition of a ‘related party’ to
remove inconsistencies and simplify the structure of the Standard. No changes are expected to materially
affect the Company.
AASB 1053: Application of Tiers of Australian Accounting Standards and AASB 2010-2: Amendments to
Australian Accounting Standards arising from Reduced Disclosure Requirements [AASB 1, 2, 3, 5, 7, 8, 101,
102, 107, 108, 110, 111, 112, 116, 117, 119, 121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140,
141, 1050 & 1052 and Interpretations 2, 4, 5, 15, 17, 127, 129, & 1052] (applicable for annual reporting
periods commencing on or after 1 July 2013).
AASB 1053 establishes a revised differential financial reporting framework consisting of two tiers of financial
reporting requirements for those entities preparing general purpose financial statements.
• Tier 1: Australian Accounting Standards; and • Tier 2: Australian Accounting Standards – Reduced Disclosure Requirements
Tier 2 of the framework comprises the recognition, measurement and presentation requirements of Tier 1, but
contains significantly fewer disclosure requirements
The following entities are required to apply Tier 1 reporting requirements (ie. full IFRS);
• for-profit private sector entities that have public accountability; and
• the Australian Government and state, territory and local governments.
Since the Company has public accountability, it does not qualify for the reduced disclosure requirements for
Tier 2 entities.
AASB 2010-2 makes amendments to Australian Accounting Standards and Interpretation to give effect to the
reduced disclosure requirements for Tier 2 entities. It achieves this by specifying the disclosure paragraphs
that a Tier 2 entity need not comply with as well as adding specific “RDR” disclosures.
AASB 2009-12: Amendments to Australian Accounting Standards [AASBs 5, 8, 108, 110, 112, 119, 133,
137, 139, 1023 & 1031 and Interpretations 2, 4, 16, 1039 & 1052] (applicable for annual reporting periods
commencing on or after 1 January 2010).
This Standard makes a number of editorial amendments to a range of Australian Accounting Standards and
Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB. The Standard
also amends AASB 8 to require entities to exercise judgement in assessing whether a government and entities
known to be under the control of that government are considered a single customer for the purposes of
certain operating segment disclosures. The amendments are not expected to impact the Company.
AASB 2009-14: Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement
[AASB Interpretation 14] (applicable for annual reporting periods commencing on or after 1 January 2010).
This Standard amends Interpretation 14 to address unintended consequences that can arise from the previous
accounting requirements when an entity prepays future contributions into a defined benefit pension plan.
It is not expected to impact the Company.
AASB 2010-4: Further Amendments to Australian Accounting Standards arising from the Annual
Improvements Project [AASB 1, AASB 7, AASB 101 & AASB 134 and Interpretation 13] (applicable for annual
reporting periods commencing on or after 1 January 2011).
Annual Report 2010 /11
27
Sanctuary Lakes Club Limited
Notes To and Forming
Part of the Accounts
For the Financial Year ended 30 June 2011
1. Summary of Accounting Policies Cont.
This Standard details numerous non-urgent but necessary changes to Accounting Standards arising from the
IASB’s annual improvements project. Key changes include:
• clarifying the application of AASB 108 prior to an entity’s first Australian-Accounting Standards
financial statements;
• adding an explicit statement to AASB 7 that qualitative disclosures should be made in the context
of the quantitative disclosures to better enable users to evaluate an entity’s exposure to risks arising
from financial instruments;
• amending AASB 101 to the effect that disaggregation of changes in each component of equity
arising from transactions recognised in other comprehensive income is required to be presented, but
is permitted to be presented in the statement of changes in equity or in the notes;”
• adding a number of examples to the list of events or transactions that require disclosure under AASB
134; and
28
• making sundry editorial amendments to various Standards and Interpretations.
This Standard is not expected to impact the Company.
AASB 2010-5: Amendments to Australian Accounting Standards [AASB 1, 3, 4, 5, 101, 107, 112, 118, 119,
121, 132, 133, 134, 137, 139, 140, 1023 & 1038 and Interpretations 112, 115, 127, 132 & 1042] (applicable
for annual reporting periods beginning on or after 1 January 2011).
This Standard makes numerous editorial amendments to a range of Australian Accounting Standards
and Interpretations, including amendments to reflect changes made to the text of IFRSs by the IASB.
However, these editorial amendments have no major impact on the requirements of the respective amended
pronouncements.
AASB 2101-6: Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial
Assets [AASB 1 & AASB 7] (applicable for annual reporting periods beginning on or after 1 July 2011).
This Standard adds and amends disclosure requirements about transfers of financial assets, especially those
in respect of the nature of the financial assets involved and the risks associated with them. Accordingly, this
Standard makes amendments to AASB 1: First-time Adoption of Australian Accounting Standards, and AASB
7: Financial Instruments: Disclosures, establishing additional disclosure requirements in relation to transfers of
financial assets.
This Standard is not expected to impact the Company.
AASB 2010-7: Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)
[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and
Interpretations 2, 5, 10, 12, 19 & 127] (applies to periods beginning on or after 1 January 2013).
This Standard makes amendments to a range of Australian Accounting Standards and Interpretations as
a consequence of the issuance of AASB 9: Financial Instruments in December 2010. Accordingly, these
amendments will only apply when the entity adopts AASB 9.
As noted above, the Company has not yet determined any potential impact on the financial statements from
adopting AASB 9.
sanctuary lakes club
AASB 2010-8: Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying
Assets [AASB 112] (applies to periods beginning on or after 1 January 2012).
This Standard makes amendments to AASB 112: Income Taxes.
The amendments brought in by this Standard introduce a more practical approach for measuring deferred
tax liabilities and deferred tax assets when investment property is measured using the fair value model under
AASB 140: Investment Property.
Under the current AASB 112, the measurement of deferred tax liabilities and deferred tax assets depends
on whether an entity expects to recover an asset by using it or by selling it. The amendments introduce a
presumption that an investment property is recovered entirely through sale. This presumption is rebutted if
the investment property is held within a business model whose objective is to consume substantially all of the
economic benefits embodied in the investment property over time, rather than through sale.
The amendments brought in by this Standard also incorporate Interpretation 121 into AASB 112. The
amendments are not expected to impact the Company.
AASB 2010-9: Amendments to Australian Accounting Standards – Severe Hyperinflation and Removal of Fixed
Dates for First-time Adopters [AASB 1] (applies to periods beginning on or after 1 July 2011).
This Standard makes amendments to AASB 1: First-time Adoption of Australian Accounting Standards.
The amendments brought in by this Standard provide relief for first-time adopters of Australian Accounting
Standards from having to reconstruct transactions that occurred before their date of transition to Australian
Accounting Standards.
Furthermore, the amendments brought in by this Standard also provide guidance for entities emerging from
severe hyperinflation either to resume presenting Australian-Accounting-Standards financial statements or to
present Australian-Accounting-Standards financial statements for the first time.
This Standard is not expected to impact the Company.
AASB 2010-10: Further Amendments to Australian Accounting Standards – Removal of Fixed Dates for firsttime adopters (AASB 2009-11 & AASB 2010-7] (applies to periods beginning on or after 1 January 2013).
This Standard makes amendments to AASB 2009-11: Amendments to Australian Accounting Standards
arising from AASB 9, and AASB 2010-7: Amendments to Australian Accounting Standards arising from AASB
9 (December 2010).
The amendments brought in by this Standard ultimately affect AASB 1: First-time Adoption of Australian
Accounting Standards and provide relief for first-time adopters from having to reconstruct transactions that
occurred before their transition date.
[The amendments to AASB 2009-11 will only affect early adopters of AASB 2009-11 (and AASB 9: Financial
Instruments that was issued in December 2009) as it has been superseded by AASB 2010-7].
This Standard is not expected to impact the Company.
Taxation
Pursuant to a review of the affairs of the Company by the Australian Taxation Office “ATO”, the income tax
exempt status of the Company was withdrawn on the basis that the ATO believed the Company’s principal
activity had not been the promotion of sport.
The Directors have since re-structured the business affairs of the Company, effective from 1 July 2010, to
ensure the principal activity remains the promotion of sport, thereby facilitating the tax exempt status of the
Company.
Annual Report 2010 /11
29
Sanctuary Lakes Club Limited
Notes To and Forming
Part of the Accounts
For the Financial Year ended 30 June 2011
2. Related Parties
The Directors of the Company are named in the Directors’ Report.
During the year, the Company incurred management fees and other charges with the following related entities
on normal commercial terms and conditions:
a) Incurred charges from the following entities
Financial & Admin
Services
Entity LLL (i)
30
General Operating
Expenses
2011
$
2010
$
2011
$
2010
$
-
19,116
426
-
-
19,116
426
-
b) Raised charges with the following entities
Subsidy
Entity
SLJV (i) (ii) (iii) (iv)
LLL
(i)
General Services
2011
$
2010
$
2011
$
2010
$
1,169,699
578,900
55,309
286,204
-
-
663
2,495
1,169,699
578,900
55,973
288,699
c) As at 30 June 2011 the Company had a non-interest bearing loan from SLJV of $2,107,595
(2010: $1,500,000).
SLJV
Sanctuary Lakes Joint Venture
LLL
Links Living Ltd
(i)
Stephen Head is a Director of this entity
(ii)
Ken Roche is a Director of this entity
(iii)
Nicholas Roche is a Director of this entity
(iv)
Colin Cass is a Director of this entity
sanctuary lakes club
31
Annual Report 2010 /11
sanctuary lakes club
348,563
-
-
-
Forgiveness of Debt
Other Revenue
Total Revenue
-
-
-
Other Expenses
Total Expenses
Net Contribution
724,117
4,134,734
690,908
108,993
-
125,944
71,807
486,880
(127,323)
3,613,796
664,996
310,034
322,441
-
101,339
413,426
3,297
-
-
409,771
1,144,665
243,827
3,486,473
64,979
-
1,145,137
842,814
1,433,543
2011
$
(118,318)
2,555,304
222,934
223,191
423,432
-
23,403
355,105
6,692
-
-
-
1,049,305
251,242
2,436,986
34,802
-
78,900
1,097,867
1,225,417
2010
$
Golf Operations &
Maintenance
(96,772)
1,613,705
97,177
26,188
-
-
30,448
48,775
-
-
-
-
840,059
571,058
1,516,933
116,384
-
24,562
1,375,987
-
2011
$
-
2010
$
(110,252)
1,713,594
120,783
25,101
-
-
16,649
146,927
-
-
-
27,968
816,387
559,779
1,603,342
91,915
-
-
1,511,427
Hospitality
Note: These allocations are abritary, detailed allocations are not presented due the complex nature of indirect expenditure items.
-
Depreciation
713,679
-
-
Repairs & Maintenance
-
-
Utilities
Security Costs
-
Landscaping
Golf Course Expenses
35,601
-
Lake Maintenance
-
159,996
-
-
1,740,926
Management Fees
-
Employee Benefits
-
4,858,851
-
Insurance
-
Cost of Sales
Expenses -
-
Developer Subsidy
473,433
-
Trading Revenue
4,036,855
2010
$
-
2011
$
Subscriptions
Revenue Resort Services,
Rec Club & Estate
Maintenance
Trading Performance for the Financial Year ended 30 June 2011
-
-
-
-
-
-
-
-
-
-
-
-
-
-
500,000
-
-
-
-
-
2011
$
-
-
2010
$
(688,078)
1,188,078
258,844
41,227
-
-
85,810
65,153
-
-
99,044
588,000
50,000
-
500,000
-
-
500,000
Administration
Departmental Overview of Income & Expenses
Sanctuary Lakes Club Limited
32
(224,095)
5,227,501
762,173
336,222
322,441
-
131,787
462,201
3,297
-
-
409,771
1,984,724
814,885
5,003,406
181,363
-
1,169,699
2,218,801
1,433,543
2011
$
2010
$
(192,531)
9,591,710
1,293,469
398,512
423,432
713,679
161,463
693,129
78,499
486,880
99,044
775,964
3,656,618
811,021
9,399,179
475,280
-
578,900
3,082,727
5,262,272
TOTAL CLUB
33
Address
Greg Norman Drive, Sanctuary Lakes Resort (off Point Cook Road)
Sanctuary Lakes Victoria Australia 3030
Phone
Fax
+61 3 9395 2888
+61 3 9395 2988
Email
Web
[email protected]
www.sanctuarylakes.com.au
LL3751
Sanctuary Lakes Club Limited