PRESIDENTS. GOLF CANADA STAFF (as of December 31, 2018) EXECUTIVE TEAM Laurence Applebaum Garrett Ball Bill Paul John Sibley Jeff Thompson

Transcription

1 2018 Annual Report

2 2 Golf Canada

3 PRESIDENTS 1896 Hon. George A. Drummond, Royal Montreal GC, Dixie (QC) 1897 John Hamilton, Quebec GC, Québec (QC) 1898 Col. George A. Sweny, Toronto GC, Toronto (ON) 1899 Lt.-Col. D.T. Irwin, Royal Ottawa GC, Aylmer (QC) 1900 W.W. Watson, Royal Montreal GC, Dixie (QC) 1901 Col. George A. Sweny, Toronto GC, Toronto (ON) 1902 G.H. Balfour, Royal Montreal GC, Dixie (QC) 1903 P.D. Crerar, Hamilton GC, Ancaster (ON) 1904 Fayette Brown, Royal Montreal GC, Dixie (QC) 1905 D.R. Wilkie, Toronto GC, Toronto (ON) 1906 Hon. George Perley, Royal Ottawa GC, Aylmer (QC) 1907 A.W. Austin, Lambton G&CC, Toronto (ON) 1908 Dr. R.F. Ruttan, Royal Montreal GC, Dixie (QC) 1909 Col. George A. Sweny, Toronto GC, Toronto (ON) 1910 A.W. Austin, Lambton G&CC, Toronto (ON) 1911 Hon. Justice G.F. Orde, Royal Ottawa GC, Aylmer (QC) 1912 J.T. McCall, Royal Montreal GC, Dixie (QC) 1913 A.H. Campbell, Toronto GC, Toronto (ON) 1914 C.E. Read, Royal Ottawa GC, Aylmer (QC) F.A. Rolph, Lambton G&CC, Toronto (ON) 1920 D.R. Brown, Beaconsfield GC, Montreal (QC) 1921 Paul Myler, Hamilton GC, Ancaster (ON) 1922 R.C.H. Cassels, K.C., Toronto GC, Toronto (ON) 1923 George S. Lyon, Lambton G&CC, Toronto (ON) 1924 S.B. Gundy, Rosedale GC, Toronto (ON) 1925 W.E. Matthews, Royal Ottawa GC, Aylmer (QC) 1926 C.A. Bogert, Toronto GC, Toronto (ON) 1927 W.W. Walker, Royal Montreal GC, Dixie (QC) 1928 Major W.D. Wilson, Hamilton G&CC, Ancaster (ON) 1929 C.E. Harvey, Elmhurst G&CC, Winnipeg (MB) Alfred Collyer, Knowlton GC, Knowlton (QC) 1932 W.H. Plant, Mississaugua G&CC, Mississauga (ON) 1933 C.W. Jackson, St. Charles CC, Winnipeg (MB) 1934 George H. Forster, Beaconsfield GC, Montreal (QC) 1935 E.C. Gould, Brantford GC, Brantford (ON) 1936 Robert Jacob, K.C., Elmhurst G&CC, Winnipeg (MB) 1937 John I. Rankin, Beaconsfield GC, Montreal (QC) 1938 Lt.-Col. Claude Brown, London Hunt & CC, London (ON) 1939 J. Ernest Savard, Le Club Laval-sur-le-Lac, Laval (QC) 1940 Frank H. Harris, Mississaugua G&CC, Mississauga (ON) 1941 W.S. Charlton, Point Grey GC, Vancouver (BC) 1942 C.H. Sclater, Hamilton G&CC, Ancaster (ON) 1943 M.R. Ferguson, Beaconsfield GC, Montreal (QC) 1944 Dr. A.W. Matthews, Mayfair G&CC, Edmonton (AB) 1945 H.R. Frost, K.C., Thornhill GC, Thornhill (ON) 1946 J.A. Fuller, Royal Montreal GC, Dixie (QC) 1947 George W. Lang, Westmount G&CC, Kitchener (ON) 1948 F.N. Robertson, Riverside G&CC, Saint John (NB) 1949 R.C. Holbrook, Royal Montreal GC, Dixie (QC) 1950 C.W. Watson, St. George s G&CC, Toronto (ON) 1951 J. Gordon Bowers, Capilano G&CC, Vancouver (BC) 1952 Colin Rankin, Beaconsfield GC, Montreal (QC) 1953 A.J. Mylrea, Rosedale GC, Toronto (ON) 1954 R.C. Borland, Calgary G&CC, Calgary (AB) 1955 Dr. E.O. Turner, Fredericton GC, Fredericton (NB) 1956 James P. Anglin, Q.C., Royal Montreal GC, Dixie (QC) 1957 C. Ross Somerville, London Hunt & CC, London (ON) 1958 John M. Blair, St. Charles CC, Winnipeg (MB) 1959 Gordon B. Taylor, Kanawaki GC, Kahnawake (QC) 1960 V.C. Holdroyd, Rosedale GC, Toronto (ON) 1961 H.C. Lyle, Capilano G&CC, Vancouver (BC) 1962 Dr. J.E. Leddy, Riverside CC, Saskatoon (SK) 1963 Albert Rolland, Le Club Laval-sur-le-Lac, Laval (QC) 1964 W. Arthur Johnston, St. Charles CC, Winnipeg (MB) 1965 R. Bruce Forbes, Brantford G&CC, Brantford (ON) 1966 E. Duncan Millican, Royal Montreal GC, Montreal (QC) 1967 Phil Farley, Scarboro G&CC, Toronto (ON) 1968 J.A. Swanson, Elmhurst G&CC, Winnipeg (MB) 1969 Ray Getliffe, Royal Montreal GC, Montreal (QC) 1970 J. Campbell McLean, Capilano G&CC, Vancouver (BC) 1971 Patrick C. Osler, Toronto GC, Toronto (ON) 1972 Cecil Vineberg, Hillsdale G&CC, Montreal (QC) 1973 George C. Hevenor, Sr., Summit G&CC, Toronto (ON) 1974 Richard H. Grimm, Mississaugua G&CC, Mississauga (ON) 1975 J.D. Heywood, Riverside CC, Saskatoon (SK) 1976 Dave Shea, Richelieu Valley GC, Ste-Julie de Vercheres (QC) 1977 T. George Armstrong, Lambton G&CC, Toronto (ON) 1978 R. Bruce Bailey, Calgary G&CC, Calgary (AB) 1979 W. Len Goldson, Toronto GC, Toronto (ON) 1980 Ralph M. Everson, Kanawaki GC, Kahnawake (QC) 1981 Ralph Costello, Riverside CC, Saint John (NB) 1982 John S. Marshall, Q.C., Hamilton G&CC, Ancaster (ON) 1983 Manual Bricker, Glendale G&CC, Winnipeg (MB) 1984 Wm. A. Farlinger, F.C.A., Lambton G&CC, Toronto (ON) 1985 James D. Bruce, Capilano G&CC, Vancouver (BC) 1986 Dr. Douglas G. Brewer, Fredericton G&CC, Fredericton (NB) 1987 Thomas P. Wood, Derrick G&WC, Edmonton (AB) 1988 Harold Brownstein, Elm Ridge GC, Île Bizard (QC) 1989 Keith Rever, Wascana GC, Regina (SK) 1990 Robert G. Long, Rosedale GC, Toronto (ON) 1991 Peter J. Hope, Brightwood G&CC, Dartmouth (NS) 1992 Hugh G. Hallward, Royal Montreal GC, Montreal (QC) 1993 Findlay S. Young, Prince George G&CC, Prince George (BC) 1994 W. Keith Gray, Toronto Hunt Club, Toronto (ON) 1995 Jacques Nols, Kanawaki GC, Montreal (QC) 1996 N. Douglas Ross, Q.C., Belvedere G&WC, Charlottetown (PE) 1997 F.A. (Al) Macatavish, Elmhurst G&CC, Winnipeg (MB) 1998 F. Gordon Coyle, Mississaugua G&CC, Mississauga (ON) 1999 Worden Teasdale, Markland Woods G&CC, Toronto (ON) 2000 Donald Griffiths, Point Grey G&CC, Vancouver (BC) 2001 Roger Archambault, Beloeil GC, Beloeil (QC) 2002 Harry Zuzak, Coloniale G&CC, Beaumont (AB) 2003 James A. Grant, Royal Montreal GC, Montreal (QC) 2004 David D. Shaw, Riverside G&CC, Saint John (NB) 2005 James Halliday, Victoria GC, Victoria (BC) 2006 Wayne C. Petersen, Paradise Canyon Golf Resort, Lethbridge (AB) 2007 Garry West, Bayview G&CC, Thornhill (ON) 2008 Andrew Cook, Markland Woods GC, Etobicoke (ON) 2009 Tom McCarthy, Ashburn GC, Halifax (NS) 2010 Jack McDonald, Rivershore Golf Links, Kamloops (BC) 2011 Karen Rackel, Q.C., Highlands GC, Edmonton (AB) 2012 Diane Dunlop-Hébert, Mount Bruno, Montréal (QC) 2013 Michael P. Carroll, Q.C., Point Grey GC, Vancouver (BC) 2014 Douglas Alexander, London Hunt & CC, London (ON) 2015 Paul McLean, Coppinwood GC, Goodwood (ON) Roland A. Deveau, Q.C., Clare G&CC, Church Point (NS) 2018 Leslie Dunning, Earl Grey GC, Calgary (AB) GOLF CANADA STAFF (as of December 31, 2018) EXECUTIVE TEAM Laurence Applebaum Garrett Ball Bill Paul John Sibley Jeff Thompson FINANCE & ADMINISTRATION Garrett Ball Dawn Anderson Alison Richmond Danielle Clouse Natalie Henein Stephanie Charteris Kathy Oliver Meggan Gardner Kelsey Clayton Krista Nielsen Chief Executive Officer Chief Financial Officer / Ethics Commissioner Chief Championship Officer Chief Commercial Officer Chief Sport Officer Chief Financial Officer / Ethics Commissioner Executive Assistant to the CEO / Board Administrator Director, Human Resources Coordinator, Human Resources Senior Accountant Intermediate Accountant Front Desk Coordinator Director, Heritage Services General Manager, Calgary Golf Centre Assistant Manager, Calgary Golf Centre MEMBER SERVICES & SPORT PROGRAMS Jeff Thompson Dave Stockton Blair Armitage Guy Bernier Jeffrey Hutt Ryan Logan Taylor Stevenson Jordan Vizena Maketo Binzangi Brian Doherty Craig Loughry Adam Helmer Dan Hyatt Adam Cinel Akash Patel Kelly Dawdy Adam Hunter Nathalie Mihalek Derek Ingram Tristan Mullally Chief Sport Officer Director, Member Services & High Performance Sport Regional Director, Member Services, Western Canada Regional Director, Member Services, Québec & Ottawa Valley Regional Director, Member Services, Atlantic Canada Regional Director, Member Services, Ontario Manager, Member Services Senior Coordinator, Member Services Coordinator, Member Services Coordinator, Member Services Director, Handicap & Course Rating Director, Rules, Competitions & Amateur Status Manager, Rules & Competitions Coordinator, Competitions Coordinator, Competitions Manager, Future Links Golf in Schools Manager, Grow the Game Coordinator, Grow the Game Head Coach, Men s National Amateur & Young Pro Squads Head Coach, Women s National Amateur & Young Pro Squads Robert Ratcliffe Matt Wilson Emily Phoenix PROFESSIONAL CHAMPIONSHIPS Bill Paul Bryan Crawford Mary Beth McKenna Ryan Paul Paige Ottaviano Kris Boomhouwer COMMERCIAL Head Coach, National Junior Boys Squad Director, Next Generation Performance Head Coach, National Junior Girl s Squad Coordinator, High Performance Sport Chief Championship Officer Tournament Director, RBC Canadian Open Assistant Tournament Director, RBC Canadian Open Tournament Director, CP Women s Open Assistant Tournament Director, CP Women s Open Manager, Operations John Sibley Chief Commercial Officer Craig Sharp Managing Director, Partnerships Jeff Payne Director, Partnerships Whitney Gorges Manager, Partnerships Jason Diplock Managing Director, Sales Michael Evans Director, Sales CP Women s Open Dave Kay Director, Sales RBC Canadian Open Lauren Andrews Senior Manager, Sales RBC Canadian Open Ken Vezina Manager, Sales RBC Canadian Open Steve Metzger Manager, Sales RBC Canadian Open Christiane Beauchamp Supervisor, Sales Centre Peter Kirkpatrick Managing Director, Marketing Marianne Baker Director, Brand Paula Bradford Manager, Design Brendan Peters Coordinator, Marketing and Design Ljubomir Gorscak Director, CRM & Business Analysis Jeremy Avery Coordinator, Web Development Dan Pino Director, Communications Terry Lenyk Manager, Media & Public Relations Tyler Costigan Manager, Content & Community Philippe Riel Manager, Translation GOLF CANADA FOUNDATION Martin Barnard Joelle Efford Ailey Jarvis CEO, Golf Canada Founation Director, Development & Events Coordinator, Scholarship Program & Events 2018 Annual Report 3

4 BOARD OF DIRECTORS Leslie Dunning, President, AB (Officer) Charlie Beaulieu, 1st Vice President, QC (Officer) Liz Hoffman, 2nd Vice President, ON (Officer) Roland Deveau, Past President, NS (Officer) David Atkinson, Director at Large, BC Adam Daifallah, Director at Large, QC Dale Jackson, Director at Large, BC Rob MacDonald, Director at Large, MB David McCarthy, Director at Large, ON Susan MacKinnon, Chair, Provincial Council, AB Tom Sears, Chair, Governors Council, ON Laurence Applebaum, Chief Executive Officer, ON Back Row, L-R: Susan MacKinnon, David McCarthy, David Atkinson, Dale Jackson, Rob MacDonald, Adam Daifallah, Tom Sears Front Row, L-R: Laurence Applebaum, Roland Deveau, Leslie Dunning, Charlie Beaulieu, Liz Hoffman GOVERNORS COUNCIL Tom Sears, Chair, ON Barbara Allan, ON Diane Barabé, QC Paul Beaudry, AB Gordon Campbell, ON Allison Chisholm, NB Jim Clark, ON Shirley d Entremont, NS Diane Drury, QC Don MacKay, ON Nick Marrone, ON Kevin O Donovan, MB Christian Osborne, ON Kelly Roberts, ON Doug Roxburgh, BC Dan Sabourin, BC Herb Schlotter, AB Paul Schofield, QC Laura Small, SK Richard Smith, SK Jean Stone-Séguin, ON Kay Thompson, NL Steven Young, AB Jeff Thompson, Staff Rep,ON Back Row, L-R: Herb Schlotter, Doug Roxburgh, Allison Chisholm, Barbara Allan, Richard Smith, Jim Clark, Don MacKay, Steven Young, Paul Schofield, Kelly Roberts, Dan Sabourin Front Row, L-R: Paul Beaudry, Shirley d Entremont, Jean Stone-Seguin, Diane Barabé, Tom Sears, Jeff Thompson, Diane Drury, Kay Thompson, Gordon Campbell ABSENT: Nick Marrone, Kevin O Donovan, Christian Osborne, Laura Small PROVINCIAL COUNCIL Susan MacKinnon, Chair, Alberta Golf David Acker, Nova Scotia Golf Association Delbert Betnar, Golf Saskatchewan Ken Casey, Golf Newfoundland Labrador John Gallinger, Golf Ontario Tom Hendershot, Golf New Brunswick Peter Major, Alberta Golf Vince Mariani, Golf Manitoba Brenda McIlwaine / Ryan Garrett, PEI Golf Association Barry Petrachenko, British Columbia Golf Marcel Paul Raymond, Golf Québec Jeff Thompson, Golf Canada Back Row, L-R: Peter Major, Marcel Paul Raymond, Jeff Thompson Front Row, L-R: Delbert Betnar, Brenda McIlwaine, Susan MacKinnon, Tom Hendershot ABSENT: David Acker, Ken Casey, John Gallinger, Ryan Garrett, Vince Mariani, Barry Petrachenko 4 Golf Canada

5 HONORARY LIFE GOVERNORS Past Presidents of both Golf Canada and the (former) Canadian Ladies Golf Association. Doug Alexander, ON Roger Archambault, QC Sheila Bentley, BC Dr. Douglas G. Brewer, NB Harold Brownstein, QC Michael P. Carroll, Q.C., BC Peggy Colonello, MB Andrew Cook, ON Thelma Coutts, AB Mary Drummie, QC Diane Dunlop-Hébert, QC Patricia Edwards, NB Audrey Gordon, BC James A. Grant, QC W. Keith Gray, ON Donald Griffiths, BC James Halliday, BC Peter J. Hope, NS Robert G. Long, ON F.A., Al Macatavish, MB Paul McLean, ON Grace McCann, ON Tom McCarthy, NS Jack McDonald, BC Carole Mix, NB Jacques Nols, QC Wayne C. Petersen, AB Karen Rackel, Q.C., AB Keith Rever, SK N. Douglas Ross, Q.C., PE David D. Shaw, NB Worden Teasdale, ON Garry West, ON Findlay S. Young, BC Harry Zuzak, AB COMMITTEES Standing Committees Audit & Risk Rob MacDonald, Chair, MB Gordon Campbell, ON Jason Hammerschmidt, ON Dale Jackson, BC David McCarthy, ON Leo Perri, ON Tom Sears, ON Laura Small, SK Garrett Ball, Staff Rep, ON Investment Tom Sears, Chair, ON Roger Beach, ON Peter Boronkay, BC Gordon Campbell, ON Tom Forestell, ON Rob MacDonald, MB Kelly Roberts, ON Robin Roopchan, ON Garrett Ball, Staff Rep, ON William Chyz (consultant), ON David Kaufman (consultant), ON Handicap & Course Rating Richard Smith, Chair, SK Allison Chisholm, NB Bob Heath, ON Kathy Hill, ON Bill MacMillan, NS Herb Schlotter, AB Judy Sefton, SK Nancy Spineti Delle-Donne, QC Karen Vanzella, BC Craig Loughry, Staff Rep, ON Compensation Charlie Beaulieu, Chair, QC Roland Deveau, NS Leslie Dunning, AB Liz Hoffman, ON Laurence Applebaum, Staff Rep, ON Governance Charlie Beaulieu, Chair, QC David Atkinson, BC Paul Beaudry, AB Diane Drury, QC Susan MacKinnon, AB Marcel Paul Raymond, QC Herb Schlotter, AB Laura Small, SK Dawn Anderson, Staff Rep, ON Garrett Ball, Staff Rep, ON Human Resources David Atkinson, Chair, BC Barbara Allan, ON Roger Beach, ON Allison Chisholm, NB Jim Clark, ON Shirley d Entremont, NS Diane Drury, QC Dan Sabourin, BC Jean Stone-Sequin, ON Alison Richmond, Staff Rep, ON Danielle Clouse, Staff Rep, ON Nominating Doug Alexander, Chair, ON Roland Deveau, NS Paul McLean, ON Marcel Paul Raymond, QC Pat Thompson, BC Kay Thompson, NL Laurence Applebaum, Staff Rep, ON Operating Committees Amateur Competitions Liz Hoffman, Chair, ON Helen Banning, ON Diane Barabé, QC Rob Laing, BC Dan Sabourin, BC Herb Schlotter, AB Paul Schofield, QC Susan White, BC Steven Young, AB Adam Helmer, Staff Rep, ON CGHF Selection Committee Sandra Post (Honoured Member), Chair, ON Graham Cooke (Honoured Member), QC Warren Crosbie, ON Ted Fletcher, QC Tiffany Gordon, AB Tom McCarthy, NS Garry McKay, ON Deborah Pyne, BC Lorne Rubenstein (Honoured Member), ON Harry Brotchie, MB Meggan Gardner, Staff Rep, ON Heritage Services Barbara Allan, Chair, ON Adam Daifallah, QC Dave Daye, ON Ian Giles, ON Diane Imrie, ON Garry McKay, ON Marlene Streit, ON Meggan Gardner, Staff Rep, ON Rules & Amateur Status Diane Barabé, Chair, QC Tom Forestell, ON Dale Jackson, BC Brian Lee, SK Jack McDonald, BC Dan Sabourin, BC Jean Stone-Séguin, ON John Turner, ON Bruce Watson, NL Tom Zariski, AB Adam Helmer, Staff Rep, ON Sport Doug Roxburgh, Chair, BC Matt Allen, ON Glenn Cundari, ON Doug Hastie, BC Graham Hill, ON Liz Hoffman, ON Stephen Norris, AB Kelly Roberts, ON Pat Thompson, BC Jeff Thompson, Staff Rep, ON 2018 Annual Report 5

6 PRESIDENT S REPORT This year, I attended activities from modernized Rules of Golf education sessions, to Future Links events, to amateur and professional championships, to the Canadian Golf Hall of Fame Induction Ceremony. Golfers, at every level, were a joy to meet, watch and celebrate. But the highlight of the year was being present for Brooke Henderson s historic win at the CP Women s Open in Regina! Thank you to the thousands of volunteers and professionals who conducted national, provincial, local and club activities, as well as hundreds of charity events from coast to coast. Special thanks to our behind the scenes volunteer course raters, museum personnel and the many volunteers and staff serving in support, administrative and committee functions. Financial accountability is a priority for Golf Canada, and we are proud of the strong year-over-year operating results in Unfortunately, the downturn in financial markets near the end of the fiscal year had a significant effect on our investment portfolio. This underscores the importance of Golf Canada s progress towards operational profitability. The Golf Canada Board of Directors is pleased to have our CEO Laurence Applebaum present the strategic plan for during the Annual Meeting. Laurence, and the management team, are to be commended on the collaborative process undertaken in developing this road map. Thanks to all of our stakeholders that took the time to provide valuable input throughout the creation of this plan. Golf is a sport rooted in respect: Respect for our fellow golfers, the environment, the rules of golf and the course itself. Golf is also built on values such as honesty, self-discipline, inclusion, health, friendship and fun. These values are some of the reasons so many people, myself included, love the game. Today there is more diversity in golf than ever before. Outreach, to many of the diverse groups of golfers across the country, has been a good first step in building relationships, learning how we can support their priorities and sharing how everyone can be part of Golf Canada. Golf in Schools is fundamental to inclusion, as it provides young people the opportunity to be exposed to the sport. When schools are adopted, and students have the opportunity to visit golf facilities, they are more likely to become life-long golfers. Increasing the number of women and girls engaged in golf, as players, competitors, volunteers and professionals in the golf industry, is another important inclusion goal that Golf Canada and many other stakeholders are working towards together. Thank you to provincial associations, club boards, club managers, course owners, superintendents and PGA of Canada professionals, for your contributions to increasing participation and excellence in golf. The media professionals, who so capably share the stories of golf, must also be recognized for their impact on growing the game. Much appreciation is due to Sport Canada, the Canadian Olympic Committee, the R&A, USGA, LPGA Tour, PGA TOUR and Golf Canada Foundation for their support. Tremendous gratitude to our title sponsors and partners at RBC and CP; the commitment and leadership shown by your companies and your people, many who serve as volunteers at the Opens, is inspiring. Thank you for the privilege of serving as Golf Canada s 114th President. Leslie Dunning, CPA, CMA President Golf Canada 6 Golf Canada

7 Brooke Henderson l 2018 CP Women s Open Champion 2018 Annual Report 7

8 CEO REPORT than Brooke s historic victory at Wascana Country Club in Regina. Eight Canadians enter 2019 with PGA TOUR status Adam Hadwin, Mackenzie Hughes, Corey Conners, Nick Taylor, Ben Silverman and David Hearn with Adam Svensson and Roger Sloan earning their card via the Web.com Tour. On the LPGA Tour, Brooke will be joined by Alena Sharp, Brittany Marchand and A.C. Tanguay along with Team Canada star, Jaclyn Lee, who turned pro after earning her card at Q-School this past fall. Golf Canada continues to invest in our high-performance program, including athletes and coaches. The evolution of the Team Canada program features the centralized training of Junior Squad athletes and coaches at our National Training Centre at Bear Mountain Resort in Victoria. Our national amateur championships continue to provide an environment that promotes participation and development at the highest level. My sincere congratulations and appreciation go out to the forty-three individual, team and inter-provincial champions, as well as our proud host member clubs and the thousands of volunteers who give their time in support of golf in their community. On many levels, 2018 was one of the most successful years in Golf Canada s recent history and I am incredibly proud of the progress and results achieved by the entire organization. We experienced incredible momentum with particular highlights at our Championships including dynamic champions in Brooke Henderson and Dustin Johnson, exciting future venues, deepened partner engagements, and new leadership appointments that have both events on strong footing moving forward. Our goal is to elevate our National Open Championships to premier internationally recognized tournaments that are must attend events for players, spectators and corporate partners. Together with RBC and the PGA TOUR, we proudly announced a new chapter for the RBC Canadian Open beginning in 2019, highlighted by the move to an exciting June date leading into the U.S. Open. Management has worked with RBC on a refreshed vision for the RBC Canadian Open as a premier, sports and entertainment festival marking the start of summer in the Greater Toronto Area, and a renewal of our extended partnership for the next five years. Similarly, the CP Women s Open in August will continue to be pillar of excellence thanks to a five-year title sponsorship extension with Canadian Pacific and the LPGA Tour that runs through Our 2019 Professional Championships will be conducted at historic venues, with the prestigious Magna Golf Club in Aurora, Ont., hosting the CP Women s Open and Hamilton Golf and Country Club to host the first of two (2019 and 2023) RBC Canadian Opens over the next five years. A priority focus for 2019 will be securing host venues for both National Championships for 2020, 2021 and There is great excitement behind the talented athletes representing Canada on the global golf stage and no result was more captivating Sport programs are increasing participation in golf through a variety of engaging programs including our internationally recognized junior program Future Links which is currently running in 691 facilities nationwide. Golf in Schools added 316 new sites in 2018 to bring the total number of participating schools to 3,748 across Canada. In partnership with the Provincial Golf Associations and the PGA of Canada, our Get Linked strategy saw 131 facilities receive 271 total grants to connect students with golf facilities running Future Links junior golf activities in their community. In collaboration with provincial, national and international partners, Golf Canada is committed to providing resources and services to drive value and growth to our entire membership. We are pleased that 1015 of existing member clubs have been converted to the Gold Membership model at the end of our 2018 fiscal. As we work to deliver enhanced value to member golfers and facilities, we are tracking towards 100% Gold Membership conversion among our 1,390 member facilities by the end Another key priority continues to be the finalization of Golf Canada s go-to-market strategy to engage public golfers and facilities over the next three years. The development and roll-out of the new modernized Rules of Golf including education and certification was a significant undertaking in partnership with the R&A and USGA. The integrated launch of the new Rules Modernization in 2019 has started very strongly. Golf s governing bodies are now working collaboratively on the next major initiative, the World Handicap System. Throughout the upcoming year, Golf Canada will be an integral part of the development, testing and implementation, which takes effect January 1, As outlined in our enclosed financial statements, management is pleased to report one of our most successful financial years in the last 8 Golf Canada

9 decade at the net operations level with a surplus to our annual budget, before investments and amortization, recognizing a $603K improvement in the net operating deficit compared to 2017 results. The strong acceleration of revenue growth was a major highlight of 2018 as we strive to develop world-class properties and integrated marketing platforms that enhance Golf Canada s brand, while delivering sustainable, profitable revenues to maximize our reinvestment into the sport. In addition to title partners RBC and CP, we are pleased to have premier partners such as Acushnet, Steam Whistle, Levelwear, adidas Canada, Acura, the City of Hamilton, Sport Canada, Golf Town and others support Golf Canada s reinvestment objectives. We are also appreciative of support from the Golf Canada Foundation, which contributed more than $1.3M in grants to support high performance, grassroots programming, post-secondary scholarships and sport development initiatives. The development of our membership strategy to engage public players and facilities, paired with a deeper commercialization of the platforms and channels that comprise Golf Canada s Digital Network, will elevate engagement with the golf consumer, enrich the conversation with our membership base and deliver enhanced Premium Sponsor benefits. Although encouraged by the significant year-over-year improvement to Golf Canada s Net Operating Results and overall revenue growth, the Q4 capital markets plummet resulted in disappointing investment income compared to Management will continue to evaluate every area of our operation for revenue growth and efficiencies to lessen the impact of investment income volatility on our organization. Establishing deeply connected and mutually beneficial relationships with Canadian and international partners is a priority for Golf Canada. We continue to drive sport and industry initiatives through integrated work with the Provincial Golf Associations, PGA of Canada, NGCOA Canada, the club managers, superintendents, Sport Canada, the Canadian Olympic Committee and our proud member clubs. We are also encouraged by collaboration with international partners such as the R&A, USGA, PGA TOUR, LPGA Tour and Augusta National Golf Club on shared initiatives to increase participation and excellence in golf. Diversity, access and inclusion remain priorities for the global golf community and Canada is well positioned as a best practice example in leading these important changes. All golf enthusiasts deserve to participate and compete in a safe sport environment, free from harassment, abuse or discrimination, regardless of gender, race, religion, language, age and ability. Golf Canada is fully aligned with the important work of Sport Canada in this critical issue and encourage all those connected with our sport athletes, parents, coaches, staff, volunteers and club representatives to maintain an open dialogue to ensure a safe and supportive environment, without exception, across the Canadian golf landscape. I am proud of what Golf Canada achieved across many areas of our operation and look forward to sharing our new Strategic Plan ( ). A most sincere thank you to the golfers, member clubs, athletes, volunteers, sponsors and passionate stakeholders who have contributed to Golf Canada and the overall health of our sport. Golf is in great shape and we look forward to advancing the sport and driving Golf Canada s vision to be a world leader in golf. Laurence Applebaum Chief Executive Officer Golf Canada 2018 Annual Report 9

10 5.7 Million golfers in Canada 314,000 total number of Golf Canada members at 1,390 member facilities 60,000,000 approximate number of rounds played annually in Canada number of competitors at Golf Canada 2,936Competitions 20,500 Facebook 32,500 Twitter Brooke Henderson captures the CP Women s Open, becoming the first Canadian to win since Jocelyne Bourassa in Henderson repeats as Canadian Press & Postmedia Female Athlete of the Year Canadians competed in the CP Women s Open at Wascana Country Club 20 RBC Canadian Open awarded PGA TOUR s BEST IN-CLASS ELEMENT for The Rink Dustin Johnson wins the RBC Canadian Open 10 Golf Canada Canadians competed in the 2018 RBC Canadian Open at Glen Abbey Golf Club

11 14.3 Billion economic impact of golf in Canada 2 honoured members elected to the Canadian Golf Hall of Fame: Gail Graham, A.V. Macan Instagram followers 2,298 golf facilities in Canada (ranking it second in the world in total supply) 8 Canadians earn PGA TOUR status 5 Canadians 12,840,598 earn LPGA Tour status number of page views on golfcanada.ca 84% of Canadian golfers are public players 37,000 number of Canadian charitable events conducted at golf courses each year that help to raise approximately $ 533 Million 7,265,904 scores posted to golfcanada.ca 235,624 number of Canadians who track an official handicap $ 1.3 Million awarded through funding from the Golf Canada Foundation countries represented at the Canadian Men s and Women s Amateur Championships (combined) countries represented at the World Junior Girls Championship 175 Golf Fore the Cure presented by Subaru events conducted nationally 14,000 Golf Fore the Cure presented by Subaru participants $ 6.7 Million raised to date in support of breast cancer research 117 national certified Level 4 Rules Officials 316 new schools adopted into Future Links, driven by Acura Golf in Schools 3, , , total schools total students golf facilities registered mobile clinics facilities took part in Junior Skills Challenge juniors participated in programming PGA of Canada professionals programming newly trained Community Golf Coaches in-school visits conducted by PGA of Canada professionals wins across various professional golf tours by Young Pro Squad members since the program launched in 2014

12 RBC CANADIAN OPEN CHAMPION Glen Abbey Golf Club Oakville, ON July Dustin Johnson CANADIAN UNIVERSITY/COLLEGE CHAMPIONSHIP Chilliwack Golf Club, Chilliwack, BC, May 29-June 1 CANADIAN WOMEN S AMATEUR CHAMPIONSHIP Marine Drive Golf Club, Vancouver, BC, July CANADIAN JUNIOR GIRLS CHAMPIONSHIP Beach Grove Golf Club, Tsawwassen, BC, July 31-August 3 MEN S Team: University of the Fraser Valley Cascades Medallist: Daniel Campbell (University of the Fraser Valley Cascades) Yealimi Noh, Concord, CA Inter-provincial: British Columbia CANADIAN JUNIOR BOYS CHAMPIONSHIP Medicine Hat Golf & CC, Medicine Hat, AB, July 30-August 2 Céleste Dao, Notre-Dame-de-l Île-Perrot, QC Juvenile: Emily Zhu, Richmond Hill, ON Inter-provincial: Québec CANADIAN MEN S AMATEUR CHAMPIONSHIP Duncan Meadows GC & Pheasant Glen GR, Duncan / Qualicum Beach, BC, August 6-9 WOMEN S Team: University of British Columbia Thunderbirds Medallist: Avril Li (University of British Columbia Thunderbirds) Christopher Vandette, Beaconsfield, QC Juvenile: Christopher Vandette, Beaconsfield, QC Inter-provincial: Alberta Zach Bauchou, Forest, VA Inter-provincial: Québec CANADIAN MEN S MID-AMATEUR CHAMPIONSHIP Victoria Golf Club, Victoria, BC, August Golf Canada Joseph Deraney, Belden, MS Mid-Master: Todd Fanning, Winnipeg, MB Inter-provincial: Ontario

13 CP WOMEN S OPEN CHAMPION Wascana Country Club Regina, SK August Brooke Henderson CANADIAN WOMEN S MID-AMATEUR & SENIOR CHAMPIONSHIP Lookout Point Country Club, Fonthill, ON, August WORLD JUNIOR GIRLS CHAMPIONSHIP Camelot Golf & CC, Cumberland, ON, September Team: Italy PACIFIC CHAMPIONSHIP Bear Mountain Resort Valley Course, Victoria, BC, May Boys: Cole Wilson, Kelowna, BC Girls: Monet Chun, Richmond Hill, ON Mid-Amateur: Sue Wooster, Australia Mid-Master: Sue Wooster, Australia Senior: Sue Wooster, Australia Super-Senior: Jackie Little, Procter, BC Inter-provincial: Ontario CANADIAN MEN S SENIOR CHAMPIONSHIP Gowan Brae Golf & CC, Bathurst, NB, September 4-7 Medallist: Atthaya Thitikul (Thailand) FUTURE LINKS FALL SERIES EAST CHAMPIONSHIP Club de golf Owl s Head, Mansonville, QC, September ONTARIO CHAMPIONSHIP Otter Creek Golf Club, Otterville, ON, May Boys: Laurent Desmarchais, Longueuil, QC Girls: Taylor Kehoe, Strathroy, ON QUÉBEC CHAMPIONSHIP Club de Golf Lachute, Lachute, QC, June 8-10 Boys: Robbie Latter, Mississauga, ON Girls: Emily Romancew, Pierrefonds, QC PRAIRIE CHAMPIONSHIP Portage Golf Club, Portage La Prairie, MB, June Boys: Wesley Hoydalo, Selkirk, MB Girls: Sydney Scraba, Calgary, AB Brady Exber, Las Vegas, NV Super-Senior: Doug Roxburgh, Vancouver, BC Inter-provincial: British Columbia Boys: Yuqi Liu, Thornhill, ON Girls: Hailey McLaughlin, Markham, ON FUTURE LINKS FALL SERIES EAST CHAMPIONSHIP Sunshine Coast Golf & Country Club, Roberts Creek, BC, September WESTERN CHAMPIONSHIP Highwood Golf & Country Club, High River, AB, June 1-3 Boys: Kai Iguchi, Banff, AB Girls: Taylor Stone, Calgary, AB ATLANTIC CHAMPIONSHIP Twin Rivers Golf Course, Port Blandford, NL, July Boys: Owen Mullen, Truro, NS Girls: Haley Baker, Halifax, NS Boys: Ilirian Zalli, Burnaby, BC Girls: Jennifer Gu, West Vancouver, BC 2018 Annual Report 13

14 TEAM CANADA YOUNG PRO SQUAD Jared du Toit Kimberley, BC Stuart Macdonald Vancouver, BC Albin Choi Toronto, ON Taylor Pendrith Richmond Hill, ON Augusta James Bath, ON Jennifer Ha Calgary, AB Brittany Marchand Orangeville, ON Anne-Catherine Tanguay Quebec City, QC NATIONAL SQUAD Hugo Bernard Mont-Saint-Hilaire, QC Chris Crisologo Richmond, BC Josh Whalen Napanee, ON Joey Savoie La Prairie, QC Grace St-Germain Ottawa, ON Jaclyn Lee Calgary, AB Maddie Szeryk London, ON Naomi Ko Victoria, BC JUNIOR SQUAD Christopher Vandette Beaconsfield, QC Johnny Travale Stoney Creek, ON Nolan Thoroughgood Victoria, BC Peyton Callens Langton, ON Thomas Critch Hamilton, ON Céleste Dao Notre-Dame-de-l Île-Perrot, QC Monet Chun Richmond Hill, ON Ellie Szeryk London, ON Alyssa DiMarcantonio Maple, ON 14 Golf Canada

15 Céleste Dao l Team Canada 2018 Annual Report 15

16 FINANCIAL ANALYSIS The 2018 fiscal year-end concluded with a significant improvement in Golf Canada s Results a $603K improvement in the annual Net Operating Deficit compared to 2017 and a 24% net gain compared to our planned 2018 budget. Golf Canada endeavours to materially strengthen its financial stability which has now seen three consecutive years of positive results versus budget in our Net Operating Deficit. Management continues to develop and execute on strategies to ensure the long-term health of Golf Canada. Our partners at the Provincial Golf Associations, volunteers, stakeholders, and staff deserve to be commended for their collaboration and valued contributions which have resulted in such improved operating results in Continuing to improve the Net Operations financial ratio was an important objective in During the year, the Board of Directors approved a revision to the internally-imposed Financial Mandate which now requires that the Net Operating Deficit be reduced to breakeven by This will help to increase the use of our investment portfolio capital for long-term strategic initiatives and provide security if volatility in global capital markets affects our annual investment income. ANNUAL NET OPERATING DEFICIT (IN THOUSANDS) $2, $1,703 -$1,051 -$1,376 -$773 Unfortunately, this risk came to fruition in fiscal 2018 as capital markets plummeted in the two months prior to our October 31 fiscal year-end, causing the fair value of our investment portfolio to decrease by $943K (net of distributions) in this period alone. Golf Canada s investment income decreased by $1,619K compared to This was the lead factor which led to the final $982K Deficiency of Revenues over Expenses recognized in Nonetheless, there were several qualitative successes of which we are proud to report: the Senior Leadership Team of Golf Canada was enhanced with the hiring of Chief Commercial Officer, John Sibley as well as the hiring of new RBC Canadian Open Tournament Director, Bryan Crawford and appointment of Ryan Paul as new CP Women s Open Tournament Director; a long-term title sponsorship and Team Canada premier partnership with Canadian Pacific Railway was renewed through 2023 with meaningful growth along with the selection of Magna Golf Club in Aurora as host of the 2019 CP Women s Open; a new date, purse, title sponsorship fee and enhanced multi-faceted premier partnership was signed with RBC and the PGA TOUR in conjunction with the RBC Canadian Open through 2023; a dynamic, multi-year City of Hamilton agreement along with securing a coveted spot in the R&A s Open Qualifying Series for the RBC Canadian Open; the Golf Canada National Training Centre and centralized program for the Development Squad at Bear Mountain Golf Resort in Victoria was successfully launched; enhanced sponsorship agreements with Acushnet Canada, Golf Town and the aforementioned RBC, were renewed for broad and digitally integrated Golf Canada umbrella sponsorships; our partners at the Golf Canada Foundation also recognized a very successful fiscal year in which $1,306K of grants were issued a 52% increase over FINANCIAL RESULTS Golf Canada has a responsibility to operate and support program initiatives that create awareness, increase participation and drive excellence in the sport. We have a duty to support and provide benefit to members, golfers and facilities, and provide them with tools and resources to drive participation. Notwithstanding our Amateur Championships, we are proud to report that all facets of our Member Services and direct programs recognized improvements in their net contribution compared to The net contribution of our program support also improved by a healthy $421K and our aggregate Professional Championships net contribution also improved by $127K. The Golf Canada Calgary Centre, hampered by harsh weather in the spring and fall, only recognized a surplus of $28K a decrease of $137K compared to Primarily based on the 3.3% growth in total revenue, a trend which has continued consecutively since 2014, we are proud of the programs, services and championships we delivered in TOTAL REVENUE (IN THOUSANDS) $33, $35,424 $37,214 $38,563 $39, Further details on all major aspects of Golf Canada s core operations are outlined below. MEMBER SERVICES Member dues are an integral source of funding for Golf Canada and our partners at the Provincial Golf Associations. The net contribution of Member Services is dedicated to offset the cost of delivering our direct programs and services as the National Sport Federation. In 2018, we put forth a concerted effort to transition member facilities into our enhanced membership model which is ripe with benefits for both the facility and the golfer. A tremendous and resounding collaboration with our Provincial Association partners has helped convert over 1,015 facilities nationally. As at October 31, 2018, Golf Canada s full-paid membership is approximately 270,000 ( ,750). Golf Canada is transitioning away from the previously offered free ( bronze ) membership (approximately 44,000 individuals) with a strategy to convert those at this level to full-paid members as part of our public-player strategy. During the year, we completed a strategy focused on targeting and engaging the mass number of public-players in Canada which will be initiated in We believe that there are a significant number of these golfers in Canada that will embrace the enhanced membership value proposition. We are particularly proud of the incident protection member benefit introduced in 2018 which can support an individual Gold member with up to $6,000 on an annual basis for incident protection. In 2018, Golf Canada paid out $115K in claims under this benefit to our members. The new benefits are only associated with our Gold membership program, sold in conjunction with our Provincial Golf Association partners. With living wages growing across the country and additional benefits continually being enhanced or added, we will continue to review our long-term pricing strategy to help ensure the net contribution of Member Services is a healthy contributor to support programs and services. In 2018, 16 Golf Canada

17 through volume rebates on the scale of the benefits provided and increased market prices that were implemented to account for a variety of factors, we increased our net contribution to $2.5M (up from $2.4M in 2017). After an allocation of program support expenses, based on a pro-rata estimate of activities and resources, the total gross revenues generated from Member Services were directed to programs and services apportioned amongst strategic pillars as follows: 63% on growing participation (including gold benefit costs, member services, and Future Links, among others); 24% on ensuring excellence (amateur championships and high-performance programming); 12% to expand capacity (rules and amateur status, handicap and course rating); and 1% toward fostering interaction in the sport. HOW ARE MEMBER DUES USED? EXPANDING CAPACITY INDUSTRY INTERACTION GROW THE GAME INITIATIVES HIGH PERFORMANCE & EXCELLENCE GRASS ROOTS PROGRAMS 24% Funding for grass roots programs is derived from five primary sources participation fees, grants, Sport Canada, corporate partnerships and donations. In 2018, with the financial assistance of Indigenous and Northern Affairs Canada and operating support from the PGA of Canada and University of Ottawa, we conducted a pilot program in the Alexander First Nation community in Alberta. The pilot was primarily focused on Life Skills development and utilizing the Future Links Golf in Schools program two components of our Future Links, Driven by Acura programming, to enhance community/ parent involvement in Alexander. A total of 691 facilities (up from 560 in 2017) registered with Golf Canada to run one or more of the several Future Links junior golf components, including, Girls Club, Learn to Play, and the Junior Skills Challenge. Our partners and stakeholders in the Golf in Schools component of Future Links see tremendous value in using schools to introduce the sport to children. In particular, the Get Linked Initiative provides grants to facilities or PGA of Canada Professionals for hosting field trips with schools or visiting the school and assisting the facilitation of Golf in Schools. Golf Canada s continued investment towards Golf in Schools would not be possible without the continued support of individual donors and corporate partners, particularly Acura, Golf Town, Golf Ontario, ClubLink, The Canadian Seniors Golf Association and the Golf Canada Foundation. In addition, 271 Get Linked Initiative grants were issued in 2018 helping to increase the total schools participating in Golf in Schools to 3,748 (up from 3,427). The momentum of the Junior Skills Challenge continued with an exciting National Event hosted on the opening weekend of the RBC Canadian Open at Glen Abbey Golf Club. A total of 24 participants from across the country competed in three divisions before crowning our national Junior Skills Challenge champions. Among the many success stories, Team Canada member Jaclyn Lee, who recently turned professional and earned full-status to compete on the LPGA Tour in 2019, competed in the Junior Skills Challenge National Event six years ago. Junior Skills Challenge is an important introduction to competition for up and coming Canadian junior golfers. Finally, the Golf Fore the Cure presented by Subaru, was enhanced in 2018 with an additional investment from our partners at the Canadian Cancer Society as well as Adidas Canada. The program, which was hosted at 175 facilities with over 14,000 female participants, collectively donated $423,000 dollars to our charitable recipients the Canadian Cancer Society and the Quebec Breast Cancer Foundation. HIGH PERFORMANCE (TEAM CANADA) 63% 13% 1% This investment supported the development of seventeen athletes on Golf Canada s national men s and women s Junior and Amateur Squads that proudly represented Canada at many international golf championships as well as on the biggest national stage during the RBC Canadian Open and CP Women s Open. Our Young Pro Squad supported eight up and coming athletes (financial, coaching, and other resources) who have recently turned professional to help them with their transition. Golf Canada was especially pleased that among the many athlete successes in 2018, both the men s and women s world amateur teams finished inside the top 10 in Funding for Golf Canada s high-performance program comes from four sources Sport Canada, participation fees, corporate partnerships, and a significant investment from the Golf Canada Foundation. The program s increased investment in 2018 provided Golf Canada with the opportunity to increase the number of athletes in the program by 18% but most importantly, launch the National Training Centre at Bear Mountain Resort in Victoria, B.C. The National Training Centre provides Team Canada with year-round access to dedicated high-performance training facilities and amenities. The first-ever centralization of the Junior Squads and coaching staff in Victoria from January through April allowed the athletes to significantly increase contact time with our high-performance staff while attending a local school. We believe that the National Training Centre will be a significant contributor to supporting the long-term podium pathway for our athletes. AMATEUR CHAMPIONSHIPS Funding for Amateur Championships comes from several sources Sport Canada, player entry fees, corporate partnerships and municipal governments, along with funding from the R&A to aid in conducting the World Junior Girls Championship. This segment includes the operation of Golf Canada s eight national amateur competitions, the World Junior Girls Championship, the Toyota World Junior Boys Qualifier, and the Future Links, driven by Acura Junior Championships. In 2018, our costs increased by 3% compared to 2017 as we introduced two additional Future Links Championships which were conducted in the fall. In addition, 2018 was Canada s rotational opportunity to host the Toyota World Junior Boys Championship which was contested at Bear Mountain Resort. Continued investment, strong player recruiting, and support from municipalities has helped us grow the Women s National Amateur Championship and World Junior Girls Championship to high A-strength events in the world amateur golf ranking system. PROFESSIONAL CHAMPIONSHIPS The 2018 CP Women s Open was a spectacular moment in the history of Canadian golf with Brooke Henderson becoming the first Canadian in 45 years to win the National Open. This was the first time the CP Women s Open (or any major professional golf championship) had ever been to Saskatchewan, and the City of Regina, the Regina Hotel Association, and Tourism Saskatchewan were tremendous hosts and supporting partners. In 2018, the inaugural CP Women s Leadership Summit on Tuesday of tournament week was successfully introduced as a pillar component of the event going forward. The CP Has Heart campaign raised $2M in support for the Jim Pattison Children s Hospital while Golf Canada continued to recognize commercial growth for the 4th consecutive year in total revenues for the event. The 2018 RBC Canadian Open was once again held at Glen Abbey Golf Club in Oakville, Ont., returning to the historic course for the 30th time. The hockey-themed 7th hole, dubbed The Rink was enhanced and is now a must-see component of the onsite experience we are proud to announce that it was named Best-in-Class Element across all PGA TOUR events in Golf legend Lee Trevino was the honoured guest and keynote speaker at the RBC Hall of Fame Day celebration on Tuesday of tournament week where Gail Graham and the late, A.V. Macan were inducted into the Canadian Golf Hall of Fame. Team RBC member Dustin Johnson capped a fantastic event by winning his first RBC Canadian Open. The aggregate surplus of the RBC Canadian Open and CP Women s Open increased by $126K compared to THE GOLF CANADA CALGARY CENTRE In addition to serving as a revenue source, Golf Canada s Calgary Centre provides an opportunity to test and run golf development programs; provides access for Calgarybased schools and high-performance athletes from Alberta; and increases Western- Canada brand awareness for Golf Canada. The facility operates a 9-hole short course; a driving range with a double-decker hitting stall structure that includes space for up to 60 patrons; indoor golf simulators; and a vast teaching academy supported by PGA of Canada professionals. The driving range stalls are heated which permits practice and training year-round. Like other facilities in the area, the Calgary Centre endured dreadful weather in The year started with snow and bone-chilling temperatures delaying the opening of the par-3 and putting courses by 45 days compared to our 2017 opening date. Despite this, revenues only decreased 1% but expenses increased 9% due to the implementation of several new strategic initiatives, pro shop enhancements, and the effect of the Alberta government s increased minimum wage legislation. The net result for the year was a surplus of just $28K, a decrease of $137K compared to Annual Report 17

18 INVESTMENTS The Investment Policy Statement provides guidance for our investment decisions. The portfolio comprises a combination of bond funds, equity funds and alternative investment products. The investment mix is structured to produce the desired returns to meet current and future liabilities, with a robust risk management system in place. The Investment Committee and management obtain input on a regular basis from Golf Canada s professional advisors in making decisions relating to the portfolio. The mandate of the Investment Committee includes a review of the portfolio holdings on a quarterly or more frequent basis. The inherent volatility of global investment markets is a principal risk of Golf Canada and an appropriate mix of assets has been established to ensure long-term stability in the income produced by the assets. The investment income from the portfolio continues to be used and relied upon to contribute to the delivery of our various programs and services. Management has identified the need to reduce dependency on investment income to help achieve Golf Canada s desired annual operating results breakeven or better. We expect volatility, but cannot predict the timing thereof, therefore, Golf Canada maintains a conservative portfolio mix with an average return target of 6% (net of fees) over a five-year period (2018 actual five-year average return: 4.8%; %). One component of the Financial Mandate set by the Board of Directors states that Golf Canada must maintain a minimum market value of $25M in assets, consisting of the investment portfolio, the Golf Canada Calgary Centre and any other income producing assets, of which $10M must be in liquid holdings. As at October 31, 2018, the investment portfolio balance itself was $24.2M (compared to $24.6M in 2017) and the net book value of the Golf Canada Calgary Centre was approximately $1.4M. Therefore, this component of the Financial Mandate has been met. Golf Canada is committed to ensuring the restrictions remain satisfied going forward while also strengthening Golf Canada s fiscal responsibility. During the final two months of our fiscal year, Golf Canada was affected by two of the worst months in the capital markets over the last decade causing the Corporation to recognize a deficit after amortization and investment income. Another component of the Financial Mandate requires the Corporation to operate on a breakeven basis, after amortization and investment income. As a result, this component of the Financial Mandate was not met in The net result of investment income recognized during the year was just $89K (0.36%), a significant decline of $1.6M compared to 2017 (7.20%). SOURCES OF FUNDING (Average for ) PROFESSIONAL CHAMPIONSHIPS (NET) AMATEUR CHAMPIONSHIPS GOLF CANADA CALGARY CENTRE (NET) GRASS ROOTS PROGRAMS HIGH PERFORMANCE INVESTMENT INCOME MEMBER SERVICES OTHER PROGRAMS & SERVICES PRINCIPAL RISKS OF THE CORPORATION 43% 4% 5% 9% 1% Golf Canada s ability to deliver on the facets of our strategic plan may be affected by risks and uncertainties. Management has implemented procedures to identify and manage significant brand reputation, operational, regulatory and financial risks. The following section describes the principal immediate risks and uncertainties that have been identified that could have a material and adverse effect on the organization s financial mandate: 9% 17% 12% The Audit & Risk Committee completes an annual review with management to ensure that appropriate risk mitigation processes are in place to maximize utility of Golf Canada s resources with an acceptable level of risk inherent in our operations. The principal risks above may differ from year to year; however, management ensures that appropriate mitigation activities remain in place. Golf in Canada is also indirectly impacted by macro-economic factors. The sport is dependent upon discretionary recreation spending by consumers and corporations as well as supply and demand relative to courses, ranges, facilities, and manufacturers. An extended recession could materially affect golf in Canada and our operations. A decline in the economic environment could impact disposable income that may have an adverse impact on operating revenues through membership and would negatively impact our partners, sponsors, and corporate supporters. Golf participation and rounds played annually is also directly impacted by weather conditions from coast to coast. FINANCIAL OUTLOOK AND OPPORTUNITIES A new strategic plan for Golf Canada will be launched in Notwithstanding the unfortunate timing of the capital markets decline just prior to our fiscal year-end, we are proud of the results that we have recognized over the past three years. In 2018, Golf Canada improved its net operating deficit by $603K and is committed to reducing the annual operational deficit to zero by 2022, before amortization and investment income. This will provide additional capital in our investment portfolio which will be used to support the priorities inherent in our long-term strategic plan. In addition, the added growth and sustainability will provide comfort that the component of our Financial Mandate requiring at least $25M in investments will be achievable without compromising programming or services. Golf Canada has been fortunate to partner with some of Canada s iconic brands in the Royal Bank of Canada and Canadian Pacific Railway these companies deserve to be recognized for their generosity in support of Golf Canada s programs, their impact on the growth of the game and the respective legacy they are building for Canadian golf. Additionally, the Golf Canada Foundation, their Board of Directors and their Trustees should also be recognized. The Foundation continues to be a major contributor to Golf Canada s programming, predominantly, the Young Pro Program and National Training Centre. In 2018, the Foundation contributed $1,306K (compared to $858K in 2017) in scholarships and grants to many recipients in Canada. There are very few brands as powerful as RBC and CP in Canada. Along with the Foundation, they are meaningful partners to Golf Canada. In 2019, Golf Canada will announce exciting enhancements to both of our professional championships. The Hamilton Golf & Country Club (RBC Canadian Open) and Magna Golf Club (CP Women s Open) will host our National Open Championships. The City of Hamilton is directing a significant contribution to Golf Canada over the next five-years and new festivities to be announced as part of the 2019 RBC Canadian Open would not be possible without their support. We are confident that these enhancements will increase profitability of the events providing Golf Canada with additional resources to augment programming and services. Golf Canada is demonstrating with the help of our Provincial Association partners that the revised membership model has earned interest and garnered acceptance amongst facilities in Canada. A great portion of the past few years has been spent ensuring a smooth transition of member facilities to the new suite of benefits. Management remains optimistic on converting potential Golf Canada members from the vast number of avid public players included amongst Canada s 5.7M golfer population. The focus in 2019 will begin to transition from club conversion to public player acquisition with strong belief that the enhanced public player program will ultimately increase participation, connection and revenues. Golf Canada is committed to its Financial Mandate of operating on at least a breakeven basis as well as maintaining its asset base over $25M. As the National Sport Federation, more than ever, Golf Canada is committed to deliver on our mission and objectives. A significant decrease in perceived lack of value in membership with Golf Canada or that our membership benefits do not resonate with facilities and their members The loss of a major title sponsor, particularly Canadian Pacific Railway or the Royal Bank of Canada. Alternatively, our authority as host organization of the LPGA Tour and PGA TOUR events is withdrawn by either professional body A natural disaster at the Golf Canada Calgary Centre, Golf Canada head office, professional championship host club, or significant security crisis at any event or national championship Reliance on investment income in managing Golf Canada s annual budget when significant volatility in global investment markets could arise Lack of strategic success or financial results that fall materially short of budget and/ or the Board of Director s Financial Mandate Robert MacDonald FCPA, FCA Chair, Audit & Risk Management Committee December 8, 2018 Garrett Ball CPA, CA Chief Financial Officer and Ethics Commissioner Golf Canada 18 Golf Canada

19 Independent Auditor s Report To the Members of Golf Canada We have audited the accompanying financial statements of Golf Canada, which comprise the statement of financial position as at October 31, 2018, and the statements of revenue and expenses, changes in net assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Golf Canada as at October 31, 2018, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Other Matter The financial statements of Golf Canada for the year ended October 31, 2017 were audited by another auditor who expressed an unmodified opinion on those statements on December 8, Chartered Professional Accountants, Licensed Public Accountants Burlington, Ontario December 13, 2018 BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms Annual Report 19

20 Statement of Financial Position As at October 31 Assets Current Assets Accounts Receivable and Prepaid Expenses $ 6,258,942 $ 2,803,262 Receivable from the Golf Canada Foundation (Note 12) 1,127,926 1,159,730 7,386,868 3,962,992 Investments (Note 3) 24,170,063 24,568,303 Capital Assets (Note 4) 1,627,629 1,732,697 Intangible Assets (Note 5) 169, ,795 $ 33,353,911 $ 30,495,787 Liabilities Current Liabilities Bank Indebtedness (Note 6) $ 157,167 $ 910,610 Bank Facilities (Note 6) 1,260, ,000 Accounts Payable and Accrued Liabilities 5,206,267 1,656,738 Deferred Revenue 683, ,525 7,306,810 3,466,873 Net Assets Operating 26,047,101 27,028,914 $ 33,353,911 $ 30,495,787 Commitments (Note 9) Contingency (Note 11) (See accompanying notes to financial statements) On behalf of the Board: Robert MacDonald, FCPA, FCA, Director and Audit and Risk Management Committee Chair Leslie Dunning, CPA, CMA President 20 Golf Canada

21 Statement of Changes in Net Assets Year ended October Balance, beginning of year $ 27,028,914 $ 27,027,010 (Deficiency) / Excess of Revenues over Expenses (981,813) 1,904 Balance, end of year $ 26,047,101 $ 27,028,914 (See accompanying notes to financial statements) 2018 Annual Report 21

22 Statement of Revenues and Expenses Year ended October Revenues Expenses Net Revenues Expenses Net Member Services, Program Revenues and Expenses Member Services $ 4,526,941 $ 1,979,262 $ 2,547,679 $ 3,901,682 $ 1,511,569 $ 2,390,113 Direct Program Revenues and Expenses Grass Roots Programs 1,346,153 1,337,831 8,322 1,149,783 1,180,760 (30,977) High Performance 1,777,410 1,806,891 (29,481) 1,460,525 1,525,460 (64,935) Amateur Championships 854,378 1,097,741 (243,363) 884,307 1,064,794 (180,487) Other Programs and Services 348, ,120 (36,295) 371, ,134 (58,179) Total Direct Program Revenues and Expenses 4,326,766 4,627,583 (300,817) 3,866,570 4,201,148 (334,578) Program Support Revenues and Expenses Communications and Business Development - 1,090,052 (1,090,052) - 881,830 (881,830) Administration and Overhead (Note 8) 67,000 2,562,875 (2,495,875) 67,300 3,192,766 (3,125,466) Total Program Support Revenues and Expenses 67,000 3,652,927 (3,585,927) 67,300 4,074,596 (4,007,296) Total Member Services, Program Revenues and Expenses 8,920,707 10,259,772 (1,339,065) 7,835,552 9,787,313 (1,951,761) Other Operations Professional Championships 29,278,667 28,740, ,996 27,469,976 27,058, ,016 Golf Canada Calgary Centre 1,534,898 1,506,910 27,988 1,548,735 1,384, ,507 Total Other Operations Revenues and Expenses 30,813,565 30,247, ,984 29,018,711 28,443, ,523 Net Operating Results $ 39,734,272 $ 40,507,353 $ (773,081) $ 36,854,263 $ 38,230,501 $ (1,376,238) Investment Income and Amortization Total Investment Income (Note 3) 89,461-89,461 1,708,674-1,708,674 Amortization - 298,193 (298,193) - 330,532 (330,532) (Deficiency) / Excess of Revenues over Expenses $ 39,823,733 $ 40,805,546 $ (981,813) $ 38,562,937 $ 38,561,033 $ 1,904 Sport Canada Funding (Note 7) Golf Canada Foundation (Note 12) (See accompanying notes to financial statements) 22 Golf Canada

23 Statement of Cash Flows Year ended October 31 Increase / (Decrease) in Cash Operating activities (Deficiency) / Excess of Revenues over Expenses $ (981,813) $ 1,904 Amortization of Capital Assets 217, ,214 Amortization of Intangible Assets 80, ,318 Decrease / (Increase) in Fair Value of Investments 525,104 (1,210,601) (158,516) (878,165) Net Change in Non-cash Working Capital Components Relating to Operations 409, , ,989 (64,358) Financing activity Use / (Repayment) of Bank Facilities 760,000 (470,000) Investing activities (Purchase) / Redemption of Investments (net) (126,865) 588,714 Purchase of Capital Assets (112,895) (88,666) Purchase of Intangible Assets (17,786) (30,317) (257,546) 469,731 Increase / (Decrease) in Bank Indebtedness, During the Year 753,443 (64,627) Bank Indebtedness, Beginning of Year (910,610) (845,983) Bank Indebtedness, End of Year $ (157,167) $ (910,610) (See accompanying notes to financial statements) 2018 Annual Report 23

24 Notes to Financial Statements As at October 31, Nature of Operations The Royal Canadian Golf Association, operating as Golf Canada (the Corporation), is incorporated without share capital under the laws of Canada and is a Registered Canadian Amateur Athletic Association under the Income Tax Act (Canada). Golf Canada is the National Sport Federation and governing body for golf in Canada as designated by the Government of Canada (Sport Canada). The Corporation is exempt from income tax and is a registered charity in accordance with the Income Tax Act (Canada). 2. Summary of Significant Accounting Policies (a) Basis of presentation These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. Accounting standards for not-for-profit organizations require entities to select policies appropriate for their circumstances from choices provided in the specific standards in Part III of the CPA Canada Standards and Guidance. Each member of the Board of Directors of Golf Canada is also a member of the Golf Canada Foundation (the Foundation), a separate Registered Canadian Amateur Athletic Association that is exempt from income tax in Canada under the Income Tax Act (Canada). The Foundation s mandate is to raise and grant funds for the advancement of golf in Canada. The Foundation s results are not consolidated in these financial statements but have been disclosed in Note 12. (b) Use of estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates as additional information becomes available in the future. Estimates and assumptions are used when accounting for items such as write-down of capital and intangible assets, determination of useful lives of capital and intangible assets, and accrued liabilities. (c) Financial instruments The Corporation initially measures its financial assets and liabilities at fair value when acquired or issued. Subsequently, all financial instruments are measured at fair value or amortized cost with subsequent changes in fair value recognized in the Statement of Revenues and Expenses. Transaction costs on acquisition, sale or issue of financial instruments subsequently measured at fair value are expensed as incurred. Financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or redemption. Financial assets and liabilities measured at amortized cost include accounts receivable, receivable from the Golf Canada Foundation, accounts payable and accrued liabilities, deferred revenue, and certain investments that are not traded in active markets. Investments are measured at fair value where quoted prices are available from active markets, otherwise fair values are estimated using a variety of valuation techniques and models. Investment income includes interest, dividends, realized gains/(losses), and net change in unrealized gains/(losses) for the year, less counsel and custodian fees. 24 Golf Canada

25 Notes to Financial Statements As at October 31, Summary of Significant Accounting Policies (Continued) (d) Capital assets and amortization Rates and bases of amortization applied to write-off the cost less estimated salvage value of capital assets over their estimated useful lives are as follows: Computer Equipment Leasehold Improvements Furniture and Equipment Golf Canada Calgary Centre 50%, declining balance Straight line over the term of the lease 25%, declining balance Straight line over remaining years of the lease options (e) Intangible assets and amortization Intangible assets are initially recognized and measured at cost. Intangible assets with finite useful lives are amortized over their useful lives. The amortization methods and estimated useful lives of intangible assets are as follows: Website and Score Centre Development Customer Relationship Management System 33%, declining balance 33%, declining balance (f) Revenue recognition Golf Canada follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Grants are recognized in revenue in the period for which the related expenses are incurred. Deferred revenue represents ticket and volunteer registration revenues relating to professional tournaments which have been received but not earned. Deferred revenue also includes cash received from government agencies for specified expenses and activities that will be incurred in the following fiscal year. Membership dues are recognized as revenue as fees become due. All other revenue is recognized upon completion of the particular tournament or event. (g) Donated services The work of Golf Canada is dependent on the services of many volunteers at amateur and professional events as well as governance Councils and Committees. Since these services are not normally purchased by Golf Canada and because of the difficulty of determining their fair value, donated services are not recorded in the Statement of Revenues and Expenses. (h) Impairment of long-lived assets When long-lived assets no longer have any long-term service potential to the Corporation, the excess of its net carrying amount over any residual value is recognized as an expense in the Statement of Revenue and Expenses. (i) Foreign currency translation Foreign currency accounts are translated to Canadian dollars as follows: At the transaction date, each asset, liability, revenue or expense is translated to Canadian dollars by the use of the exchange rate in effect at that date. At October 31, monetary assets are translated into Canadian dollars using the exchange rate in effect at that date. The resulting foreign exchange gains and losses are recorded in the Statement of Revenues and Expenses Annual Report 25

26 Notes to Financial Statements As at October 31, Summary of Significant Accounting Policies (Continued) (j) Financial instruments risk management (i) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for another party failing to discharge its obligation. The Corporation is subject to credit risk through trade receivables. Credit risk is minimized by dealing primarily with companies with strong financial positions. Golf Canada maintains provisions for potential credit losses and any such losses to date have been within management s expectations. There have been no changes in this risk from the prior year. (ii) Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Corporation conducts certain business in U.S. dollars and maintains a U.S. dollar bank account. At the statement of financial position date, Golf Canada held U.S. cash of $152,913 ( $97,136) and had $229,985 ( $590,762) in outstanding U.S. receivables. There have been no changes in this risk from the prior year. (iii) Interest rate risk Interest rate risk the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Corporation is subject to interest rate risk through its bank facilities (Note 6) debt that bear interest based on the lender s prime rate, which may vary from time to time. Certain of the Corporation s investments (Note 3) are also subject to interest rate risk. Golf Canada manages this risk by investing in a diversified portfolio of assets in accordance with the Investment Policy Statement. There have been no changes in this risk from the prior year. (iv) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Corporation is exposed to market fluctuations through its investments quoted in active markets. Market risk is the risk that the fair value of a financial instrument will fluctuate because of changes in those market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the markets. The Investment Committee controls risk management of the portfolio by assigning a risk classification to each holding within the portfolio and ensuring that appropriate diversification exists, guided by the Investment Policy Statement. There have been no changes in this risk from the prior year. (v) Liquidity risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, Golf Canada will not have sufficient funds to settle a transaction on the due date; will be forced to sell financial assets at a value, which is less than what they are worth; or may be unable to settle or recover a financial asset. Golf Canada is exposed to this risk mainly in respect of its accounts payable and accrued liabilities, bank facilities and commitments. Golf Canada manages this risk by maintaining a portion of its invested assets in liquid holdings. There have been no changes in this risk from the prior year. 26 Golf Canada

27 Notes to Financial Statements As at October 31, Investments (i) Financial Mandate The Board upholds a Financial Mandate with the objective for the Corporation to operate on at least a breakeven basis, after amortization and investment income, and maintain a minimum market value of $25,000,000 in the portfolio (including the Golf Canada Calgary Centre or other income producing assets) of which a minimum of $10,000,000 must be in liquid holdings. In 2018, the Board enhanced the Financial Mandate by requiring that the Corporation is to operate on a breakeven basis, before amortization and investment income by The Financial Mandate was not met for the year ended, October 31, 2018, as the Corporation recognized a deficit after amortization and investment income. (ii) Governance The investment objectives and portfolio mix are in accordance with Golf Canada s Investment Policy Statement approved by the Board. A copy of the Corporation s Investment Policy Statement is made publicly available on our external website, The Investment Committee and management obtain input on a regular basis from Golf Canada s professional advisors in making decisions relating to the portfolio. The portfolio s assets include a diversified mix of income, equity, and alternative class investment funds. The mandate of the Investment Committee includes a review of the portfolio holdings on a regular basis. As at October 31, the assets of the portfolio were measured as follows: Investments Measured at Fair Value $ 22,639,606 $ 22,887,253 Investments Measured at Amortized Cost 1,530,457 1,681,050 $ 24,170,063 $ 24,568,303 (iii) Investment Income Investment income recognized in the Statement of Revenues and Expenses include the following: Distributions $ 614,566 $ 498,073 (Decrease) / Increase in Fair Value of Investments (525,105) 1,210,601 $ 89,461 $ 1,708, Capital Assets Cost Accumulated Amortization 2018 Net Book Value 2017 Net Book Value Computer Equipment $ 709,570 $ 624,259 $ 85,311 $ 78,282 Leasehold Improvements 724, , , ,487 Furniture and Equipment 430, , , ,082 Golf Canada Calgary Centre 4,123,307 2,960,648 1,162,659 1,238,846 $ 5,988,157 $ 4,360,528 $ 1,627,629 $ 1,732, Annual Report 27

28 Notes to Financial Statements 5. Intangible Assets Cost Accumulated Amortization As at October 31, Net Book Value 2017 Net Book Value Website and Score Centre TM Development $ 385,110 $ 242,918 $ 142,192 $ 191,056 Customer Relationship Management System 96,520 69,361 27,159 40,739 $ 481,630 $ 312,279 $ 169,351 $ 231, Bank Indebtedness and Bank Facilities Bank indebtedness of $157,167 as at October 31, 2018 ( $910,610) is comprised of $398,191 ( $935,128) of outstanding payments that were more than Golf Canada s bank account balances totaling $241,024 ( $24,518). As at October 31, 2018, the Corporation has a revolving demand facility of $1,500,000. As security, Golf Canada has pledged a portion of the investment portfolio against this facility ( Facility 1(a) ). $1,260,000 of this Facility 1(a) was drawn on as at October 31, 2018 ( $500,000). Golf Canada also maintains an additional $500,000 revolving demand facility ( Facility 1(b) ) that is only available from December 1 to April 30 inclusive in each year. Both facilities are due upon demand and bear interest at a rate of bank prime plus 0.75%, which equates to 4.70% at October 31, 2018 ( %). As at October 31, 2018, the Corporation is compliant with all conditions and general covenants of the facilities. 7. Sport Canada Funding As the National Sport Federation (NSF) for golf in Canada, the Corporation receives funding from the Government of Canada through Sport Canada s Sport Support Program to enhance and advance the Canadian Sport Policy. Funding is aimed at developing our athletes and coaches at the highest international levels; providing sound technically-based golf programming for all golfers; increasing the number of Canadians from all segments of society involved in golf; and advancing Canadian interests and values in Canada and abroad. Funding is granted on the basis of eligible expenditures that are incurred to contribute to the achievement of the objectives of the Canadian Sport Policy. Funding is provided annually throughout Sport Canada s fiscal year (April 1 to March 31). Management estimates the amount of eligible expenses that are incurred during the Corporation s fiscal year and recognizes revenue from Sport Canada s fiscal funding on a pro-rata accrual basis. Revenue has been allocated to Direct Program and Program Support Revenues on a pro-rata basis of total eligible expenditures. During the Corporation s fiscal year, a total of $912,250 ( $783,000) was recognized from Sport Canada. Schedule A to these financial statements highlights the total cash funding provided by Sport Canada during their fiscal year ended, March 31, 2018 and the eligible expenditures incurred within the same Mainstream Program categories permitted by the Contribution Agreement for the Corporation s fiscal year ended, October 31, Golf Canada

29 Notes to Financial Statements As at October 31, Allocation of Administration and Overhead Expenses Building and IT Systems, Network and Applications $ 912,211 $ 968,698 Salaries, Benefits and Travel 1,357,402 1,152,173 Restructuring 22, ,202 Professional Fees, Insurance, and Bank Fees 377, ,276 Association Meetings 273, ,170 Postage, Courier and Other Costs 121, ,647 Net Tax Rebates, Recoveries and Donations (102,826) (229,363) Total Administration and Overhead Expenses 2,961,515 3,565,802 Allocation to Professional Championships (398,640) (373,036) Net Administration and Overhead Expenses $ 2,562,875 $ 3,192,766 During the year, Golf Canada incurred approximately $74,000 ( $68,000) of administration and overhead expenses, on behalf of the Golf Canada Foundation. These expenses have not been charged to the Golf Canada Foundation. 9. Commitments The Corporation has entered into agreements to lease office and storage space (33% of the 2019 commitments), land for the Golf Canada Calgary Centre (44% of the 2019 commitments), office equipment, vehicles and machinery to various dates to Minimum annual payments under these lease agreements in aggregate and for the next five years and thereafter are due as follows: 2019 $ 232, , , , ,802 Thereafter 23,236 Total $ 749, Employee Pension Plan As part of its employee compensation plan, the Corporation offers a registered defined contribution pension plan for eligible employees. Through this defined contribution plan, the Corporation makes matching contributions of 6%, up to a maximum of $3,500, on behalf of each eligible employee. During the year, the Corporation contributed $137,144 ( $123,156) on behalf of its eligible employees. The Corporation has no obligation in excess of the contributions discussed above, as it does not have any defined benefit retirement plans, nor does it provide any post-retirement medical benefits Annual Report 29

30 Notes to Financial Statements As at October 31, Contingency From time to time, the Corporation may be named as a defendant in claims that arise in the ordinary course of business. Although it is difficult to predict the outcome of any such legal actions or claims, based on current knowledge and consultation with legal counsel, management does not expect the outcome of any of these matters, individually or in aggregate, to have a material adverse effect on the Corporation s financial position. Should any uninsured losses result from the resolution of open claims, such losses will be charged to operations in the year of resolution. 12. Golf Canada Foundation The Foundation was established to raise and grant funds for the advancement of golf in Canada. The Foundation delivers this mandate through Scholarships and Grants. During 2018, the Foundation awarded a total of $1,306,000 in scholarships and grants ( $858,000). Foundation results have not been consolidated in Golf Canada s Financial Statements. The only significant difference between the accounting policies followed by Golf Canada and the Foundation is that the Foundation follows the Restricted Fund method for accounting for contributions and Golf Canada follows the Deferral method. Financial Statements of the Golf Canada Foundation are posted publicly on their website, A summary of the audited financial statements of the Foundation as at October 31 and for the years then ended are as follows: Financial Position Total Assets $ 2,894,750 $ 2,686,103 Total Liabilities 1,445,379 1,426,401 Total Net Assets $ 1,449,371 $ 1,259,702 Results of Operations Total Revenues $ 2,301,335 $ 1,647,404 (Loss) / Gain on Fair Value of Investments (30,915) 3,521 Total Expenses 2,080,751 1,525,542 Excess of Revenues over Expenses $ 189,669 $ 125,383 Cash Flows Cash (used in) / from from Operations $ (682,177) $ 148,815 Cash (used in) / from Investing Activity (32,735) 210,687 Cash from Financing Activity 190,845 63,272 (Decrease) / Increase in Cash $ (524,067) $ 422,774 The Receivable from the Golf Canada Foundation is settled on a periodic basis. Transactions between the two entities consist of reimbursement of expenses paid on behalf of the Foundation, grants paid to support Golf Canada programming, and licensing of assets. A total of $808,085 ( $726,210) has been recorded in the Statement of Revenue and Expenses as revenue from the Foundation. 13. Comparative Figures Certain of the comparative figures included in these financial statements have been reclassified to conform to the presentation adopted for the current year. 30 Golf Canada

31 Sport Canada Funding Revenues and Expenses (unaudited) Schedule A Year ended October 31 The following schedule highlights the total cash funding provided by Sport Canada during their fiscal year ending, March 31, 2018 under each of the mainstream contribution blocks of the Contribution Agreement signed between the two parties. Golf Canada recognizes Sport Canada s funding on a pro-rata accrual basis while Schedule A represents the cash funding received from Sport Canada for the April 1, 2017 to March 31, 2018 Contribution Agreement. The total expenses presented represent the eligible expenditures incurred by the Corporation within each contribution block for Golf Canada s fiscal year ended, October 31, The eligible total expenditures are presented within Direct Program Expenses and Program Support Expenses of the Statement of Revenues and Expenses, including the percentage of funding to expenditures. Sport Canada Funding Expenses Incurred Revenues and Expenses by Category General Administration $ 67,350 $ 1,030,744 Governance 29, ,174 Salaries, Fees and Benefits 237,000 3,199,537 Coaching Salaries and Professional Development 53, ,862 National Team Program 88,150 1,275,029 Official Languages 12, ,502 Operations and Programming 187,000 2,142,037 Enhanced Excellence 130, ,000 Next Generation Initiative 108, ,750 Total Revenues and Expenses $ 912,250 $ 8,994, Annual Report 31

32 GIVE BACK TO THE GAME Consider making a donation today or leave a legacy and include golf in your estate planning. Learn more options to make an impact on the game you love by visiting golfcanadafoundation.com.

33 REDONNEZ À VOTRE SPORT Envisagez de faire un don aujourd hui ou léguez un héritage qui comprend le golf dans votre planification successorale. Apprenez-en plus quant aux options qui s offrent à vous pour avoir un impact sur le sport que vous aimez, en visitant golfcanadafoundation.com/fr Annual Report 3