2014 NEW ZEALAND GOLF Annual Report and Statement of Accounts

Transcription

1 2014 NEW ZEALAND GOLF Annual Report and Statement of Accounts 1

2 VALUE OF GOLF The game of golf provides unique and lifelong enrichment. Tolan Henderson - Onewhero Golf Club THANKS We are extremely lucky and privileged to have some of the most dedicated people working and volunteering within the golf sector throughout New Zealand. Our District Associations, golf clubs and industry partners continue to tackle the multitude of challenges facing the game and do so with an abundance of energy and passion. We understand that the health of the game is reliant on the thousands of great employees, board members, committee members and volunteers who work tirelessly to ensure that the game of golf is supported well and achieves growth. The team at would like to sincerely thank all of the people who make up the golf community. We know how much work and effort goes into creating a quality golf experience that will not only keep existing golfers coming back but will attract new people into the game. We would also like to offer a special thank you to the friends and families of everyone who works within the game because we know the level of commitment and sacrifice that is needed to ensure the future of golf is a bright one. Thank you all for another great year and we look forward to working alongside you in CONTENTS Office Bearers... 5 Annual General Meeting... 5 Hall of Fame... 5 President s Report... 6 Chairman s Report District Membership High Performance Tournament Winners International Amateur Success International Professional Success Major Championship Performances New Zealand Amateur Team Performances Auditor s Report Financial Statements Statement of Financial Performance Statement of Movements in Equity Statement of Financial Position Statement of Cashflow Notes to the Financial Statements Statement of Accounting Policies Affiliation Fees Interest Revenue New Zealand Men s Open Sundry Income Net Surplus / (Deficit) for the Year Services Elite Development and Events Golf Development Junior Golf Mutual Assistance Plan Cash and Bank Balances Investments Trade and Other Receivables Inventories Loan Receivable Trade and Other Payables Provisions Employee Benefits Payable Sir Bob Charles Scholarship Property, Plant and Equipment Intangible Assets Investment in Associate Commitments and Contingencies Related Party Transactions Going Concern Events After Reporting Date Net Cash Flow from Operating Activities

3 Volunteers at Nelson Golf Club New Zealand Amateur Championship OFFICE BEARERS Patron Rt Hon Sir Tom Gault, KNZM President Philip Hassall Board of Directors Paul Fyfe (Chairman) Michael Smith (Deputy Chairman) Murray Ward (Deputy Chairman) Eileen Bateup Mike Howard Adrienne Greenwood Brent Robinson (January April 2014) Anna Shires Chief Executive Dean Murphy IGF Women s Chairman Patsy Hankins Life Members Mike Alexander Alison Bojesen-Trepka Roger Brennand Sue Bunt, MNZM Betty Cameron Flora Catto Sir Bob Charles, ONZ, KNZM, CBE Robin Dailey Barry Forrest Rt Hon Sir Tom Gault, KNZM Noreen Hamilton Patsy Hankins Philip Hassall Peter Joyce Trevor Malloch, QSM Alex Mercer Frank Nobilo, CNZM Joan Puckey Peg Sargent Tim Treacy Goldie Wardell Jean Whitehead Neil Woodbury ANNUAL GENERAL MEETING Notice is hereby given that the 2015 Annual General Meeting of Inc will be held at the Quality Hotel, 20 Gladstone Road, Parnell, Auckland on Wednesday 29 April 2015 commencing at 9:00am. 1. Welcome and Apologies. 2. Confirmation of Minutes of New Zealand Golf Incorporated Annual General Meeting 23 April Matters arising from Inc Annual General Meeting 23 April Annual Report Financial Report. 6. Adoption of Annual Report. 7. Appointment of Auditor. 8. Confirmation of Levies for General Business. HALL OF FAME Sir Bob Charles ONZ, KNZM, CBE (27 November 2010) Michael Campbell ONZM (27 November 2010) Oliver Hollis (25 March 2012) Stuart Jones (25 March 2012) 5

4 PRESIDENT S REPORT President Philip Hassall golf with the New Zealand Women s Open at Clearwater. This was followed by running the world s most unique New Zealand Open in Queenstown, over two courses and in a pro-am format which was a real success. Our thanks to Michael Hill Tournaments Limited for their tireless work to bring the Men s Open tournament to life. It is greatly appreciated. The 2015 New Zealand Men s Open will be further developed with increased prize money and TV coverage. was again the standout on the international stage as she climbed the world rankings and continued to establish herself as a world class performer. Three further LPGA titles in addition to winning the season long points race were highlights in a year of simply stunning achievements. From a local New Zealand perspective, perhaps the biggest achievement for Lydia was being awarded the supreme Halberg Award in February. This acknowledged her as New Zealand s finest sportsperson in 2013 a stunning achievement for a real golfing superstar. change is not always embraced, however when this group looks back on the achievements of the organisation over the past 12 months, it should feel very pleased for the advancements it has made. Finally I would like to offer my sincere thanks and appreciation to the membership for allowing me to be President over this past year. The role of President is one that is always a privilege and something that I never take for granted. I look forward to a successful 2015 where we can continue to work together to grow and support the game we love. Philip Hassall President Incorporated will remember 2014 as a year when our new strategic direction came to life. After acknowledging for some time there was a need to show more support to the grass roots of the game, I m pleased to report that we have made significant progress in this area during As a first and important step, this year we reached agreement with our member District Associations on what we called the Way Forward Guiding Principles document. In these challenging times it is important that we work together with our District Associations to improve the health of our sport. The Way Forward Guiding Principles will help us navigate the path ahead in a united manner. I m pleased to note, that after some initial push back, all District Associations are full supporters of the new strategic direction the organisation is taking with many adopting it as their own strategy. In another significant step, the organisation enhanced relationships and progressed formal agreements with nine golfing organisations to align and support s strategic outcomes. These included the PGA, First Tee, SNAG, New Zealand Maori Golf Association, Eagles, Nomads, Golf Managers Association, Golf Course Superintendents Association and Cheeky9. We do acknowledge the year in review has again been challenging for many in the golfing sector. The Board and management have worked tirelessly throughout 2014 and their efforts are acknowledged with many thanks. The core strategies of are to grow and support the game and we made significant progress in these areas in Under these strategic priorities many new initiatives were established in 2013 to address some of the issues we face. We built depth to our strategic plan by publishing the world class Community Golf Plan; a document that articulates how we can join together as a golfing sector to grow golf in the grass roots communities around the country. We continued the LOVE Golf campaign to improve the way New Zealanders think about the game of golf and drive participation and we launched an initiative to attract casual golfers to become part of the golfing family. On the playing side of the game, we started the year with a wonderful showcase of women s In the men s pro ranks there was great success to toast as well. Both Danny Lee and Tim Wilkinson competed well on the PGA Tour and will be joined by Steve Alker in It will be wonderful to follow these three New Zealanders on the world s biggest tour. In the amateur ranks our players again competed well in Australia and further afield however our results in Japan at the World Amateur Team Championship were short of our expectations. We acknowledge the Pupuke Golf Club and the Port Chalmers Golf Club which celebrated their centenaries in We congratulate these clubs for reaching this marvellous milestone and acknowledge their contribution to golf and the community over the past 100 years. Sadly, life member Barry Forrest passed away in April Barry was a long-time servant of the game and will be missed by the golfing community of Timaru where he made such a big contribution. We extend our sympathy to the Forrest family and all other members of the golfing family who lost loved ones in I would also like to acknowledge and thank Chairman Paul Fyfe for his leadership of our organisation in the past 12 months and the dedication and achievements of the Board. Making progress is never easy and 6 7

5 3. Success of the LOVE Golf Campaign to improve the perception of golf nationwide. 4. goes pro announcement wins the Sport and Recreation Award for Innovative Excellence and placed third in TV commercial of the Year. 5. Launch of the Casual Golf Programme to attract more casual golfers into the game. 6. The world s most unique Open championship was established in Queenstown, over two courses and in a pro-am format which was a real success. This followed the hugely successful staging of the ISPS Handa New Zealand Women s Open Championship in Christchurch. 7. Continued progress with the PGA of New Zealand to align our organisations in a closer manner in the future. 8. Enhanced relationships and formal agreements with 7 golfing organisations to align and support s Strategic outcomes. These included the PGA, First Tee, SNAG, New Zealand Maori Golf Association, Golf Managers Association, Golf Course Superintendents Association and Cheeky Handicap System review process completed and changes implemented. Annual Review CHAIRMAN S REPORT Chairman Paul Fyfe On behalf of the Board it is my pleasure to report on the activities of Inc. during Our progress in 2014 has been very pleasing; especially as the golfing sector is faced with so many challenges. Strategic Direction During 2014 we spent a considerable amount of time working on the implementation of our new strategic plan. This presented a new focus for the organisation, however I am pleased to report that this is now well established and we are already seeing the benefits of our new approach albeit there is much more work to do. Our MISSION To grow the love of golf. VISION of golf Golf is NZ s favourite pastime. VALUE of golf The game of golf provides unique & lifelong enrichment. STRATEGIC priorities Growing the game of golf. Supporting the game of golf Achievements On the Course 1. is the youngest ever winner of the LPGA Rookie of the Year Award (also Halberg Award winner in 2014 (Supreme Award and Sportswoman of the Year)). 2. Mark Brown shoots 59 at the Tauranga Golf Club round two of the Carrus Open receives global media attention. 3. Tae Koh wins the Australian Amateur Championship the first New Zealander in 22 years since Michael Campbell in Junior amateur titles Alanna Campbell and Bailey Smith begin the year in style in Australia. 5. Danny Lee, Steven Alker and Tim Wilkinson on the PGA Tour in 2014/15 best Kiwi presence in 11 years, Lee finishes third in Mexico. 6. Ryan Fox wins the Western Australian Open on the PGA Tour of Australasia, Daniel Pearce wins the Vanuatu Open. 7. Steven Alker wins the Cleveland Open on the Web.Com Tour in an 11-hole playoff and secures his card for the PGA Tour. 8. Great local champions on the Charles Tour (Doug Holloway, Joshua Geary, Ryan Fox, Mark Brown, Ryan Chisnall) National events (Joshua Munn, Luke Toomey and Chantelle Cassidy). 9. James Beale comes of age to win the Canadian Amateur and the Pacific Northwest Amateur. Off the Course 1. Implementation of a comprehensive strategic plan for the future that outlines the twin priorities of growing and supporting the game. 2. Establishment of a world-class Community Golf Plan that was acknowledged by the R&A as world leading. Their support of this project amounts to $450,000 over three years. STRATEGIC OBJECTIVES Growing the Game of Golf 1. Increased participation. 2. Increased new club membership and existing member retention. Supporting the Game of Golf 1. Improved club capability & financial health. 2. An increased number of career & education opportunities for a growing number of PGA professionals, golf industry trained professionals and volunteers. DESIRED OUTCOMES 1. Strong golf clubs & healthy golf communities; 2. Competitive success at all levels; Growing the game of golf 1. Increased Participation An Increased increased new profile club and membership positive and perception existing member of the game. retention More An increased kiwis winning profile on and the positive world stage. perception of the game. 4. More kiwis winning on the world stage. 3. Supporting A redeveloped the game administration of golf support 1. structure Improved that club is capability appropriately and meeting financial the health. needs of the game An An enhanced increased number history, legacy of career & tradition and of the game. 3. An industry that offers well remunerated careers & is recognised for its economic contribution. 8 9

6 2014 Financial Performance From a financial perspective, the business faced another difficult year. Our targeted profit for the year was $77,000 and while the business achieved an operating surplus of $47,552 prior to depreciation and amortisation, after accounting for these costs the deficit sits at $51,190. Securing appropriate levels of sustainable revenue remains the core challenge however this is set against a background of declining traditional membership levies, reducing charitable trust income and a very tough commercial sponsorship market. The fact that our affiliation levies have remained at the same rate for nine years now is a matter we may well have to address in the coming year. Currently, 47% of our income is derived from affiliation levies leaving 53% to be raised by the business. As reported last year, the demand for delivery of services increases each year and we will need to find new ways to increase our revenue if we are to deliver on the ambitions set out in our strategic plan. Administration Structure In association with our member District Associations, the Board concluded a major project to review the national administration for golf that had the broad goals of establishing: A unified and common strategy among all administration bodies working in golf; Greater efficiencies and collaboration; and Increased delivery of services to grass roots golf clubs. Thanks to the help and leadership of a subcommittee led by Max Walker of Canterbury Golf, I am pleased to report that we reached agreement on a range of guiding principles for the future of our joint administration of the sport in New Zealand. A critical part of these guiding principles is the need for a close working relationship between, our District Associations and our clubs. This is an important focus moving forward. From a national governance perspective, the alignment process with the PGA of New Zealand continues to be worked on diligently by both parties. We will determine the most appropriate way forward with the support of our District Associations in the coming financial year. Industry Partnerships In addition to our member District Associations, continues to work closely with our friends across the golfing sector. I m pleased to report we have very close relationships with the PGA of New Zealand, the Golf Managers Association, SNAG, The First Tee, the Course Superintendents Association and the New Zealand Maori Golf Association to name just a few. These organisations all have agreements with to work towards the goals as set out in our strategic plan and I would like to acknowledge the work they have done throughout the year. A key future work stream is to engage with the regional sports trusts around the country to assist the grass roots growth and support of our game. We look forward to continuing our work with all of these organisations in International Relationships An important part of our role as leaders of the game in New Zealand is to foster beneficial relationships with international golfing organisations. We take our role as part of the worldwide community of golf seriously and feel that increased collaboration and sharing of ideas with our international peers provides benefits for our game here in New Zealand. Our relationships remain very close with the R&A, APGC, IGF, Augusta National and Golf Australia in particular and we look forward to further collaboration with these bodies in the future. In particular I would like to acknowledge the R&A for their very generous support of New Zealand Golf s new grass roots initiatives. The investment received from the R&A will assist us greatly as we strive to grow and support the game in New Zealand. New Initiatives - Growing & Supporting the Game Following the publishing of our new strategic plan, this year we have launched a number of new initiatives to bring this plan to life. Under the twin priorities of growing and supporting the game, the new initiatives launched are also a reflection of our increased allocation of budget to the community and grass roots segments of the game. We continued the LOVE Golf campaign to improve the way New Zealanders think about the game of golf and drive participation and we launched an initiative to register casual golfers on our national database. The later initiative is particularly important as we strive to connect with the growing casual segment of the market and encourage them to become part of the golfing family. From a knowledge perspective, we engaged in some key pieces of research this year which provided very valuable information on the perception of golf and also the nature of the volunteer and remunerated workforce across the golf sector. This information will be valuable for us to assess on a yearly basis to understand the progress we are making. To deliver increased services to the grass roots of the game, this year we established two new roles in the Community Golf team. In partnership with District Associations, these roles provide a direct service link to golf clubs and are charged with helping clubs improve their planning processes business management. We are extremely encouraged by the progress these appointments have made in over nine months in We look forward to seeing their impact grow in To build on these themes, a national educational seminar series was held throughout the country that provided business learning opportunities for club representatives. This is an area of work we will look to expand in 2015 as the education framework we have been working on comes to life through the Golf Managers Association and the Diploma of Golf Management through Auckland Business College. Perhaps the biggest achievement this year however has been adding depth to our strategic plan by publishing the world class Community Golf Plan; a document that articulates how we can join together as a golfing sector to grow golf in the grass roots communities around the country. This plan has been incredibly well received and endorsed from all parts of the sector. The R&A has additionally identified this piece of work as world leading. Golf Operations Club Membership This year we have again experienced a membership decline in line with previous years and consistent with worldwide trends. Given the decline remains steady at around 2% per annum, we do need to accept that the behaviours and preferences of participants are changing. The majority of golf participants now engage with the game outside of the club membership structure and although this provides challenges for us, we must embrace these participants they are the future of our game. This is a key priority for the business moving forward. National Handicapping System In late 2013 the organisation embarked on an extensive handicap system review process. Over 240 Golf Clubs and nearly 10,000 members replied to the survey and the proposed changes were subsequently introduced in Our thanks go to DotGolf who, as our national service provider and partner delivers an excellent service to the game of golf. Alan McCracken and his team provide New Zealand Golf with a constantly evolving product that is world class and the envy of many international golfing organisations. National Championships National championships remain an integral part of our operations and we were pleased to present 28 national events throughout Once again in 2014 the number of entries into national events increased. runs a wide variety of national championships which also include teams championships the TORO Interprovincials and Men s and Women s Masters. We acknowledge and thank Denise Langdon and PaR NZ who run a range of participation events. These events are popular tournaments on the calendar and well attended every year. The Charles Tour continues to grow in significance and in 2014 we welcomed another host venue in the Akarana Golf Club. While the weather hampered the first Akarana Open reducing the championship to 54 holes, we are looking forward to a longstanding relationship with the club. Hosting a national championship is a large commitment for a club and its members and we give our thanks to those clubs which have generously provided their courses as host venues. We also give our sincere thanks to those many volunteers who gave their valuable time to ensure our championships ran efficiently. High Performance As s focus has broadened in recent times into the Community Golf area, the budget for our High Performance programmes has reduced significantly. The national teams and squads that represent New Zealand abroad, and of course those players who move through to the professional ranks to contend on the world stage, are a great source of pride and inspiration for the players who aspire to follow in their footsteps and for the weekend warrior alike. The role and relevance of our High Performance programme continues in these changing times as High Performance remains the face of participation. To truly get a sense of this we need only to reflect back to the Rugby World Cup of 2011 and more recently the Cricket World 10 11

7 Eisenhower Team Tae Koh, Joshua Munn & Vaughn McCall Espirito Santo Team Munchin Keh, Julianne Alvarez & Zoe Brake Cup. Success at the highest level supports the growth of the game, sponsorship opportunities within the game and of course player development itself. The highlights of 2014 continue to come from one. Her performances continue to belie her young age as she goes from strength to strength with her year ending win and capturing of the race to CME Globe signalling what is still to come. On the amateur scene 2014 was a worlds year with this iteration of the men s and women s event being held in Japan. The host club for both the Eisenhower Trophy and Espirito Santo Trophy was the picturesque Karuizawa Resort just outside of Tokyo. The depth of talent of both the men s and women s events was evident through the magnificent performances of the winning teams and those who challenged them. Unfortunately the New Zealand women s team fell off the pace early and struggled to get back into the competition, finishing 34th. The men s team performance of 15 under par would have once upon a time seen them contend for the title or at least a place inside the top 10. No longer, the incredible 38 under par total of the USA secured them the trophy and left the New Zealand team fighting for a top 20 placing, ultimately just missing out and tying for 22nd. The international amateur scene has certainly become highly competitive with most countries developing their own systems to support these young players as they progress their talents. The most noticeable attribute of the winning teams is their fearless approach to their play coupled with the skill to execute the shots required, something our own programme will continue to strive to instil. While the feats of have been well published and her many wins celebrated, 2014 also saw Steven Alker, Josh Geary, Gareth Paterson, Ryan Fox and Simon Owen win professional titles on the professional stage. Danny Lee and Tim Wilkinson retained their PGA Tour cards in 2014 for the 2015 season while Steve Alker overcame his 2013 near miss to gain his 2015 PGA Tour Card, a fantastic achievement by these three players to reach the big show. to be the number one ranked New Zealand amateur player on the World Amateur Golf Rankings in 2014 and now looks forward to the challenge of playing the 2015 Canadian Open, July 20-26th at the Glen Abbey Golf Club. Most encouragingly was the three young players in 2014 who stole the show in Australia capturing three separate Australian junior titles. Bailey Smith, Alanna Campbell and Henry Spring all showed the emerging junior talent throughout New Zealand that anything is possible with some hard work, determination and self-belief. To further refine our programme, a review of High Performance activity will be undertaken in The goal of this process is to further improve the philosophies and practices that make up our programme. We will compare ourselves with leading international countries and seek the assistance and expertise with High Performance Sport New Zealand to review the best way forward for our programmes. We do wish to ensure this aspect of our business continues to operate in a manner that makes best use of the resources we have available and achieves results we can all be proud of. would like to offer our thanks to Srixon, Cobra Puma Golf and Golf Distributors as key supporters of the High Performance programme. Our sincere thanks also go to our men s and women s national selectors Anne Seed and Lisa Herbert, John Spraggs, Michael Barltrop and Rod Patterson. We also thank those who have volunteered their time to manage teams this year including Jay Carter, Reon Sayer, Aaron Walsh, Brent Paterson, Karen de Lautour and Libby Steele. ISPS Handa New Zealand Women s Open hosted by Christchurch The stunning Clearwater Golf Club again played host to the ISPS Handa New Zealand Women s Open. With co-sanctioning again with the Ladies European Tour and the Australasian Ladies Professional Golf Tour, a stellar field was assembled which in turn attracted huge galleries of spectators with many thousands watching our own. James Beale s two international victories warrant an individual mention as this young amateur player will now have the opportunity to play a PGA Tour event in His win in the Pacific Northwest Amateur in July firmly signalled his abilities but his win at the Canadian Amateur in August cemented them. He rose Our thanks go to the Christchurch City Council and our title sponsor ISPS Handa. The event would not run as well without their generous support. A special mention and thanks also to Bob Tuohy and his team at TA Golf. Bob is a close friend of 13

8 and does an exceptional job for us in staging our Women s Open. New Zealand Open Championship In partnership with Michael Hill Tournaments Limited, we were delighted this year to return to Queenstown and host the world s most unique Open Championship, played with a concurrent Pro-Am format and over two fantastic venues (The Hills and Millbrook). The production and staging of the event was world class and of significant importance, the financial risk and operational workload is now removed from New Zealand Golf. Our sincere thanks to the MHTL team led by John Hart and Michael Glading. Our Open Championship could not be in better hands and we thank you for the tireless enthusiasm and passion you continue to bring to the event. Board & Management The Board of is a voluntary Board and I am grateful for the time and expertise they provide to at Board and subcommittee level. Each member of the Board is passionate about the game of golf and brings a great variety of knowledge and experience to the governance of our sport. During 2014 we welcomed Anna Shires and Mike Howard to the Board however regrettably, Brent Robinson left the Board after two years in order to focus on new employment opportunities. Brent s contribution to the Board as a Director was outstanding and we wish him well in his future endeavours. Board Subcommittees The Board has a number of subcommittees and I wish to record my thanks for the Directors who have added these extra responsibilities to their Director duties: Open Championships: Michael Smith (Chair), Paul Fyfe, Mike Howard Audit and Risk: Anna Shires (Chair), Michael Smith, Adrienne Greenwood, Philip Hassall High Performance: Murray Ward (Chair), Eileen Bateup, Adrienne Greenwood PGA Alignment Project: Philip Hassall, Murray Ward, Paul Fyfe, Michael Smith DotGolf Directors: Murray Ward (Chair), Eileen Bateup The Board Chair and CEO are ex officio on all Board subcommittees. International Appointments: International Golf Federation Administration Women s Chair: Patsy Hankins Asia Pacific Golf Confederation Executive Committee member: Philip Hassall R&A Rules and Amateur Status Committee: Dave Mangan Staff The Board extends its considerable appreciation and thanks to the staff, led by Chief Executive Dean Murphy. The staff of is a relatively small team considering the scope of the work before them and we are very fortunate to have the services of such fine and dedicated people for which we are grateful. Looking Forward While has made good progress in 2014 there remains much work to do. Our new strategic direction provides the road map forward however we are conscious a great deal of dedicated hard work will need to be undertaken in order to achieve the targets we have set ourselves. Improving the health of our sport is vital to us all and there is much work we need to do in the future if we are to build on our success in this area. Golf is a sport that has a proud history and fine traditions. While remaining conscious of this legacy, we do need to look ahead differently if we are to succeed. The world outside is changing at a rapid pace and we must ensure that the rate of change within the golf sector keeps pace. We have a wonderful network of clubs and assets around the country and it is our responsibility to do our best to safeguard the future of the sport in New Zealand. As a final note, we offer our thanks to the community of golf for their contribution to the game. Most people who contribute to the game of golf in our District Associations and Clubs do so on a voluntary basis and for this we offer our sincere thanks and appreciation. Paul Fyfe Chairman Incorporated Omaha Beach Golf Club 14 15

9 2014 DISTRICT MEMBERSHIP District Allocation Total No of Clubs Full Playing Men Nine Hole Men Secondary Men Life Men Junior Men Summer Men NORTH ISLAND AUCKLAND 26 8, , ,196 2, ,322 14,518 BAY OF PLENTY 27 4, ,030 2, ,497 9,527 HAWKES BAY POVERTY BAY WOMEN 17 2, , ,256 4,201 MANAWATU/ WANGANUI NORTH HARBOUR TOTAL ALL MEN Full Playing Women Nine Hole Women Secondary Women Life Women Junior Women Summer Women TOTAL ALL WOMEN TOTAL CLUB MEMBERS 22 3, , ,250 5, , ,791 1, ,225 10,016 NORTHLAND 22 3, , ,502 5,896 POVERTY BAY/ EAST COAST TARANAKI 22 2, , ,143 WAIKATO 22 6, , ,880 1, ,954 10,834 WELLINGTON 22 7, ,433 1, ,717 12,150 Total North Island ,879 2,207 4, ,503 1,788 59,164 12,099 4,027 1, ,711 77,875 Taupo Golf Club SOUTH ISLAND AORANGI SOUTH CANTERBURY 20 2, , ,298 3,986 CANTERBURY 38 7, ,040 1, ,527 11,567 OTAGO 48 5, ,132 1, ,375 9,507 SOUTHLAND 25 1, , ,819 TASMAN 25 2, , ,169 4,405 Total South Island , , , ,385 5,553 1, ,899 32, TOTAL ,824 2,866 5, ,909 2,380 83,549 17,652 5,383 1, , , Total ,548 2,963 4,750 1,001 5,393 2,462 85,117 18,163 5,688 1, , , Total ,549 3,026 4,882 1,014 5,880 2,383 87,734 19,066 5,769 1, , , Total ,197 2,997 3,925 1,041 6,171 2,247 88,578 19,894 5,930 1, , , Total ,039 3,240 3,561 1,083 6,921 2,634 92,478 21,122 6,450 1, , , Total ,092 2,931 3, ,146 2,045 91,495 21,927 6,522 1, , ,743 Notes to 2014 District Membership: Numbers for 2014 have been extracted from the DotGolf system and classifications are correct at the time of data extracted (March 01, 2015). In some districts, the Men s and Women s sections of golf clubs belong to different District Associations. Since 2006 the Women s District membership figures have been incorrectly recorded under the previous Men s District Associations, instead of under the previous Women s Golf New Zealand District Association. The above Women s District figures for 2014 are correctly recorded for each District Association. Previously recorded membership totals for 2012 and 2013 exclude Life Members. Previously recorded membership totals for 2009, 2010 and 2011 excluded secondary members. Membership totals for 2014 and all previous years have been corrected and include all membership categories. Change 2013 v 2014 Percentage Change 2013 v , , , % - 3.3% 17.3% - 0.5% - 9% - 3.3% - 1.8% - 2.8% - 5.4% 16.9% - 1.1% -9.2% 0.9% - 1.9% % 16 17

10 HIGH PERFORMANCE 2014 Tournament Winners EVENT DATE & VENUE WINNER NORTH ISLAND UNDER 19 ISPS HANDA NEW ZEALAND WOMEN S OPEN NEW ZEALAND MEN S FOURSOMES S LAWNMASTER CLASSIC CHARLES TOUR NEW ZEALAND MEN S SENIOR SOUTH ISLAND STROKE PLAY NEW ZEALAND WOMEN S SENIOR MATCH PLAY NEW ZEALAND MEN S OPEN NEW ZEALAND STROKE PLAY NEW ZEALAND WOMEN S AUTUMN FOURSOMES WOMEN S MASTERS RECREATIONAL SERVICES AKARANA OPEN - CHARLES TOUR COBRA PUMA NEW ZEALAND AMATEUR SOUTH ISLAND UNDER 19 ASK METRO MURIWAI OPEN CHARLES TOUR NEW ZEALAND WOMEN S FOURSOMES SRIXON NEW ZEALAND SECONDARY SCHOOLS FINAL SRIXON NEW ZEALAND MEN S UNDER 19 S SRIXON NEW ZEALAND WOMEN S UNDER 19 S CARRUS OPEN CHARLES TOUR JOHN JONES STEELE HAREWOOD OPEN - CHARLES TOUR NEW ZEALAND MIXED FOURSOMES DINERS CLUB FREYBERG MASTERS NEW ZEALAND MID AMATEUR January Venue: Hamilton Golf Club 31 January 2 February Venue: Clearwater Golf Club 7 February Venue: Mt Maunganui Golf Club February Venue: Manawatu Golf Club February Venue: Manawatu Golf Club February Venue: St Clair Golf Club February Venue: Springfield Golf Club 27 February 2 March Venue: The Hills Golf Club & Millbrook Golf Club March Venue: Hastings Golf Club March Venue: Cromwell Golf Club 6 8 April Venue: Springfield Golf Club April Venue: Akarana Golf Club April Venue: Nelson Golf Club 30 April 2 May Venue: Muriwai Golf Club 1-4 May Venue: Muriwai Golf Club 5 June Venue: Matamata Golf Club 1 September Venue: Taupo Golf Club 3 5 September Venue: Taupo Golf Club 3 5 September Venue: Taupo Golf Club September Venue: Tauranga Golf Club October Venue: Harewood Golf Club October Venue: Taupo Golf Club 3 7 November Venue: Waitangi Golf Club November Venue: Wairakei Golf Club Charlie Hillier (Te Puke Golf Club) Jocelynn Katu (Aviation Golf Club) Mi Hyang Lee (Korea) Compton Pikari (Te Awamutu Golf Club) Bailey Smith (Mt Maunganui Golf Club) Doug Holloway Munchin Keh (Titirangi Golf Club) Michael Barltrop (Royal Auckland Golf Club) Ryan Chisnall (Greenacres Golf Club) Brooke Hamilton (Maungakiekie Golf Club) Brigit Holford (The Grange Golf Club) Dimitri Papadatos (Australia) Luke Toomey (Lochiel Golf Club) Katsu Minami (Japan) Karen Devlin & Patricia Hollows (North Otago Golf Club) Southland Josh Geary Caroline Bon Josh Munn (Manawatu Golf Club) Chantelle Cassidy (Cambridge Golf Club) Ha Bin Su (Waitemata Golf Club) Brooke Hamilton (Maungakiekie Golf Club) Ryan Fox Munchin Keh (Titirangi Golf Club) Chantelle Cassidy (Cambridge Golf Club) Jocelynn Katu (Aviation Golf Club) Massey High School (North Harbour) Taylor Gill (Bay of Islands Golf Club) Brydie Hodge (Levin Golf Club) Mark Brown Jenna Hunter Ryan Chisnall (Greenacres Golf Club) Chantelle Cassidy (Cambridge Golf Club) Brittney Dryland & Johnny Tynan (Titirangi Golf Club) Northland Mark Boulton (Australia ) Kathy Olsen (Maraenui Golf Club) SBS INVITATIONAL NEW ZEALAND VETERANS HANDICAP FOURSOMES TORO MEN S INTERPROVINCIAL WOMEN S INTERPROVINCIAL November Venue: Invercargill Golf Club November Venue: Weedons Golf Club 2 6 December Venue: Hamilton Golf Club 9 13 December Venue: Lochiel Golf Club 2014 International Amateur Success Bay of Plenty Jean Guest (Weedons Golf Club) Gwen Heffernan (Greendale Golf Club) Waikato Auckland EVENT DATE & VENUE PLAYER POSITION VICTORIAN JUNIOR MASTERS SOUTH AUSTRALIAN JUNIOR AMATEUR AUSTRALIAN AMATEUR SANCTUARY COVE TROPHY PACIFIC NORTHWEST AMATEUR CANADIAN AMATEUR BOYS & GIRLS QLD AMATEUR 6 8 January Venue: Waverley Golf Club, New Zealand 6 7 January Venue: Kooyonga Golf Club & North Adelaide Golf Club, Australia January Venue: The Grange Golf Club, Australia February Venue: Muriwai Golf Club, New Zealand 7 13 July Venue: Palouse Ridge Golf Club, 4 8 August Venue: Elmhurst Golf Club & Southwood Golf Club, Canada 8 10 December Venue: Virginia Golf Club & Nudgee Golf Club, Australia Alanna Campbell Bailey Smith Tae Koh New Zealand James Beale James Beale Henry Spring 2014 New Zealand Amateur Team Performances Champion Winner Champion EVENT DATE & VENUE PLAYER POSITION QUEEN SIRIKIT CUP ESPIRITO SANTO WORLD TEAMS EISENHOWER WORLD TEAMS 9 11 April Venue: Saujana Golf & Country Club, Malaysia 3 6 September Venue: Karuizawa Golf Club, Japan September Venue: Karuizawa Golf Club, Japan Munchin Keh, Wenyung Keh & Julianne Alvarez Munchin Keh, Julianne Alvarez & Zoe Beth Drake Tae Koh, Josh Munn & Vaughn McCall 10th 34th T22nd 18 19

11 2014 International Professional Success 2014 Major Championship Performances EVENT DATE & VENUE PLAYER POSITION ISPS NEW ZEALAND WOMEN S OPEN VICTORIAN PGA WOMEN S AUSTRALIAN OPEN PUERTO RICO OPEN JTBC FOUNDERS CUP SWINGING SKIRTS LPGA CLASSIC SOUTH PACIFIC PAPUA NEW GUINEA OPEN CLEVELAND OPEN ARKANSAS CITY OF MACKAY OPEN MARATHON CLASSIC ALBERTSON BOISE OPEN LPGA SOUTH PACIFIC OPEN WEST AUSTRALIAN OPEN LPGA TAIWAN AUSTRALIAN SENIORS PGA NEW SOUTH WALES OPEN OHL CLASSIC AT MAYAKOBA CME GROUP TOUR 31 January 2 February Venue: Clearwater Golf Club, New Zealand 6 9 February Venue: Huntingdale Golf Club, Australia February Venue: Victoria Golf Club, Australia 6 9 March Venue: Trump International Golf Club, Puerto Rico March Venue: Wildfire Golf Club, April Venue: Lake Merced Golf Club, 8 11 May Venue: Royal Port Moresby Golf Club, Papua New Guinea 8 11 June Venue: Lakewood Country Club, June Venue: Pinnacle Country Club, July Venue: Mackay Golf Club, Australia July Venue: Highland Meadows Golf Club, July Venue: Hillcrest Country Club, August Venue: Monroe Golf Club, September Venue: Tina Golf Club, New Caledonia October Venue: Cottesloe Golf Club, Australia 30 October 2 November Venue: Miramar Golf Club, Taipei 30 October 2 November Venue: Richmond Golf Club, Australia November Venue: Castle Hill Country Club, Australia November Venue: El Camaleon Golf Club, Mexico November Venue: Tiburon Golf Club, Gareth Paddison Danny Lee Jared Pender Steven Alker Josh Geary Steven Alker Luke Toomey Ryan Fox Simon Owen Josh Geary Danny Lee 2nd T3rd 2nd T2nd 2nd T2nd 2nd 3rd T2nd 3rd 2nd 3rd EVENT DATE & VENUE PLAYER POSITION KRAFT NABISCO U.S. OPEN U.S. WOMEN S OPEN WOMEN S BRITISH OPEN WOMEN S BRITISH OPEN WEGMAN S LPGA EVIAN 3 6 April Venue: Mission Hills Golf Club, China June Venue: Pinehurst Resort, June Venue: Pinehurst Resort, July Venue: Royal Birkdale Golf Club, England July Venue: Royal Birkdale Golf Club, England August Venue: Monroe Golf Club, November Venue: Evian Resort Golf Club, France Steven Alker Catheryn Bristow T29th MC T15th T29th MC 3rd T8th ISPS Handa NZ Women s Open 20 21

12 AUDITOR S REPORT Independent auditor s report To the members of Incorporated Report on the financial statements We have audited the accompanying financial statements of Incorporated (''the incorporated society'') on pages 25 to 42. The financial statements comprise the statement of financial position as at 31 December 2014, the statements of financial performance, movements in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Board's responsibility for the financial statements The board is responsible for the preparation of financial statements in accordance with generally accepted accounting practice in New Zealand that give a true and fair view of the matters to which they relate, and for such internal control as the board 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 International Standards on Auditing (New Zealand). 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 judgement, 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 incorporated society s preparation of the financial statements that give a true and fair view of the matters to which they relate 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 incorporated society's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the 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. Subject to certain restrictions, partners and employees of our firm may also deal with the incorporated society on normal terms within the ordinary course of trading activities of the business of the incorporated society. These matters have not impaired our independence as auditor of the incorporated society. The firm has no other relationship with, or interest in, the incorporated society. Opinion In our opinion the financial statements on pages 25 to 42: comply with generally accepted accounting practice in New Zealand; give a true and fair view of the financial position of the incorporated society as at 31 December 2014 and of its financial performance and cash flows for the year then ended. Other matter The financial statements of Incorporated, for the year ended 31 December 2013, were audited by another auditor who expressed an unmodified opinion on those statements on 2 April Report on other legal and regulatory requirements In accordance with the requirements of sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993, we report that: we have obtained all the information and explanations that we have required; and in our opinion, proper accounting records have been kept by Incorporated as far as appears from our examination of those records. 17 April 2015 Auckland 22 23

13 FINANCIAL STATEMENTS Statement of Financial Performance FOR THE YEAR ENDED 31 DECEMBER 2014 NOTES 2014 $ 2013 $ REVENUE Affiliation Fees 2 2,403,987 2,454,882 Government Grants 765, ,217 Interest Revenue 3 64,065 67,524 MAP Subscriptions 201, ,733 Sponsorship & Grants 483, ,992 R&A Grant 177,532 8,000 New Zealand Men s Open - Revenue 4 5,900 - Sundry Income 5 525, ,200 Share of Associate Surplus ,843 40,000 TOTAL REVENUE 4,748,605 4,744,548 EXPENSES Junior Golf Services 7 3,235,117 3,067,071 New Zealand Men s Open - Expenses 4 211,683 13,637 New Zealand Women s Open - Expenses 11,241 13,976 Elite Development & Events 8 824, ,546 Golf Development 9 32,077 14,403 Junior Golf , ,026 Mutual Assistance Plan , ,220 Depreciation 63,612 68,923 Amortisation 35,130 7,331 TOTAL EXPENSES 4,799,795 4,690,133 NET OPERATING SURPLUS / (DEFICIT) FOR THE YEAR 6 (51,190) 54,415 NET SURPLUS/ (DEFICIT) FOR YEAR (51,190) 54,415 ALLOCATED AS FOLLOWS NZG Accumulated Funds (51,190) 54,415 TOTAL ALLOCATIONS (51,190) 54,415 25

14 Munchin Keh Statement of Financial Position AS AT 31 DECEMBER 2014 NOTES 2014 $ 2013 $ EQUITY 1,610,737 1,661,927 CURRENT ASSETS Cash and Bank Balances , ,512 Investments , ,965 Trade and Other Receivables , ,618 Inventories 15 32,434 39,887 Loan Receivable - Current , ,690 GST Receivable 37,517 15,203 TOTAL CURRENT ASSETS 1,780,297 2,086,875 CURRENT LIABILITIES Trade and Other Payables , ,092 PAYE Payable 31,903 23,524 Provisions 18 26,500 26,500 Employee Benefits Payable , ,141 Income in Advance 30,799 65,326 Player Trusts 148, ,884 Sir Bob Charles Scholarship , ,467 TOTAL CURRENT LIABILITIES 802, ,934 WORKING CAPITAL 977,332 1,107,941 Statement of Movements in Equity FOR THE YEAR ENDED 31 DECEMBER 2014 NOTES 2014 $ 2013 $ Equity at start of the year 1,661,927 1,607,512 Net operating surplus / (deficit) for the year (51,190) 54,415 TOTAL EQUITY AT END OF THE YEAR 1,610,737 1,661,927 NON CURRENT ASSETS Loan Receivable - Non-Current , ,836 Property, Plant & Equipment , ,155 Intangible Assets ,414 74,524 Investment Associate , ,471 TOTAL NON CURRENT ASSETS 633, ,986 NET ASSETS 1,610,737 1,661,927 Chairman Paul Fyfe 15th April

15 Statement of Cashflow FOR THE YEAR ENDED 31 DECEMBER 2014 NOTES 2014 $ 2013 $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Operations 4,412,860 4,649,833 Interest Received 42,450 36,992 Payments to Suppliers and Employees (4,713,665) (4,307,323) Net GST (Paid) / Received (22,314) 93,191 NET CASH INFLOW / (OUTFLOW) FROM OPERATING ACTIVITIES 28 (280,669) 472,693 CASH FLOWS FROM INVESTING ACTIVITIES Dividends Received - Associate 50,250 50,249 Payments made for Purchase of Property, Plant & Equipment (138,237) (10,835) Payments made for Purchase of Intangibles (38,019) (60,000) NET CASH INFLOW / (OUTFLOW) FROM INVESTING ACTIVITIES (126,006) (20,586) CASH FLOWS FROM FINANCING ACTIVITIES NET CASH INFLOW / (OUTFLOW) FROM FINANCING ACTIVITIES - - TOTAL NET CASH INFLOW / (OUTFLOW) (406,675) 452,107 Opening Cash and Bank Balances and Investments Balance 1,297, ,370 CLOSING CASH AND BANK BALANCES AND INVESTMENTS BALANCE 890,800 1,297,477 The accompanying notes form part of and are to be read in conjunction with these financial statements. LOVE Golf Shoot & Israel Dagg 28 29

16 NOTES TO THE FINANCIAL STATEMENTS 1. Statement of Accounting Policies Basis of Preparation (Inc) (the Organisation ) is an incorporated society registered under the Incorporated Societies Act The financial statements comprise statements of: financial performance; movements in equity; statement of financial position; statement of cashflows; accounting policies; the notes to these financial statements. The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand. They comply with approved Financial Reporting Standards (FRSs) and Statements of Standard Accounting Practice (SSAPs) as appropriate for entities that qualify for and apply differential reporting concessions. From 1 April 2014, the new Financial Reporting Act 2013 ( FRA 2013 ) has come into force replacing the Financial Reporting Act 1993, this is effective for entities reporting under the Charities Act 2005 with reporting periods beginning on or after 1 April This will be effective for the organisations 31 December 2016 year end. For (Inc), a registered charity with the Charities Commission, there will be statutory financial reporting obligations which require preparation of financial statements in accordance with the prescribed accounting standards by the External Reporting Board (XRB) - a new suite of accounting standards for notfor-profit public benefit entities (NFP PBEs). Charities which meet the definition of large (defined as having expenses in excess of $ 30 million) will be in Tier 1 (full reporting) of the NZ PBE Accounting Standards Framework, while those with operating expenditure between $2 million to $30 million will be in Tier 2 (reduced disclosures regime). Based on the current expenditure, (Inc) would be a Tier 2 reporting entity. Differential Reporting The Organisation qualifies for differential reporting as it is not publicly accountable and is not large as defined in the Framework for Differential Reporting. All available differential reporting exemptions allowed under the framework for differential reporting have been adopted except for: FRS 9 Information to be disclosed in the financial statements, where some additional disclosures have been made. FRS 3 Accounting for Property, Plant and Equipment, where the Organisation has not opted to align depreciation rates with those set by the Inland Revenue Department of New Zealand. FRS 10 - Statement of Cash Flows, where the Organisation has opted to present a cash flow statement. Measurement Base The measurement base adopted is historical cost, except for financial instruments which are initially recognised at fair value Specific Accounting Policies a) Investment in Associate Associates are entities in which the Organisation, either directly or indirectly, has a significant but not controlling interest. The Associate s results are included in the statement of financial performance, using the equity method. The investment in the Associate is carried in the Organisation s statement of financial position at cost plus acquisition change in the Organisation s share of net assets in the Associate, less any impairment value. b) Cash and bank balances Cash and bank balances are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, with original maturity dates less than 90 days. Cash and bank balances with original maturities that exceed 90 days are recognised as investments. c) Investments Investments are stated at cost less impairment. d) Receivables Receivables are stated at estimated realisable value after providing against debts where collection is doubtful. Bad debts are written off in the period which they are identified. e) Inventories Inventories are stated at the lower of cost and the net realisable value. Cost is based on the firstin first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location. f) Property, Plant & Equipment Items of property, plant and equipment are initially recorded at cost and depreciated in note g). Initial cost includes the purchase consideration, or fair value in the case of donated assets and those costs directly attributable to bringing the asset to the location and condition for its intended use. Any subsequent expenditure that increases the economic benefits derived from an asset is capitalised. Expenditure on repairs and maintenance that does not increase the economic benefits of an asset is expensed in the period it is incurred. Items of property, plant and equipment are written down immediately if impairment in the value of the asset causes its recoverable amount to fall below its carrying amount. The impairment is recognised in the statement of financial performance. Where an item of property, plant and equipment is disposed of, the gain or loss recognised in the statement of financial performance is calculated at the difference between the net sale price and the carrying amount of the asset. Any revaluation surplus is reduced or increased by the amount applicable to that item. g) Depreciation Depreciation of property, plant and equipment is calculated on a straight-line basis (SL) as indicated below. Leasehold Improvements 10 years SL Office Equipment 4 years SL IT Equipment 4 years SL Tournament Equipment 4 years SL h) Intangible Assets Intangible assets are stated at cost less accumulated amortisation. Intangible assets are amortised as outlined below. Trademarks 10 years SL Websites 4 years SL i) Taxation is exempt from tax due to its status as an amateur sports promoter under the current tax legislation. j) Goods and Services Tax (GST) The financial statements have been prepared on a GST exclusive basis, except accounts receivable and accounts payable which are stated inclusive of GST. k) Provisions Provisions are recognised when the Organisation has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made as to the amount of the obligation. l) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Organisation and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, net of GST and discounts. The following specific recognition criteria must be met before revenue is recognised: Government Grants, Grants & Sponsorship Government Grants, Grants & Sponsorship received are recognised as revenue when they are received, unless there are contractual conditions attached that remain to be fulfilled, or if any are received in advance. Interest Interest revenue is recognised as it accrues, using the effective interest method. m) Impairment The carrying value of each asset is assessed for indicators of impairment at reporting date. Where the estimated recoverable amount of the asset is less that its carrying amount, the asset is written down. The recoverable amount of an asset is the higher of its fair value less cost to sell, and value in use. Any impairment loss is recognised in the statement of financial performance

17 n) Leases Leases or hire purchase contracts where the Organisation assumes substantially all the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases. Operating Leases Operating lease payments are recognised as an expense in the statement of financial performance on a straight-line basis over the lease term. Any lease incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. o) Changes in Accounting Policies There have been no changes in accounting policies in Sundry Income SUNDRY INCOME 2014 $ 2013 $ Tournament Income 151, ,867 Sponsor Goods in Kind - 9,547 New Zealand Racing Board 102,213 69,643 Website Income 66, ,015 Donations 50,072 51,541 Miscellaneous Income 107,701 31,587 NZGN Directors Fee 48,000 48,000 TOTAL REVENUE 525, , Affiliation Fees 6. Net Surplus / (Deficit) for the Year AFFILIATION FEES 2014 $ 2013 $ Gross Affiliation Fee 2,689,161 2,774,934 Less: GST (350,760) (361,948) (2,338,401) (2,412,986) Summer Member Fees 38,086 36,787 LOVE Golf Registration Fees 27,500 5,109 TOTAL REVENUE 2,403,987 2,454,882 NUMBER OF FULL PLAYING MEMBERS* 93,536 96,519 *Number of Full Playing Members (excludes life, junior and secondary members). For full affiliated membership details please refer to page 16 of the Annual Report. 3. Interest Revenue INTEREST REVENUE 2014 $ 2013 $ Interest - Investments 49,455 46,762 Interest - Loan Receivable 14,610 20,762 TOTAL REVENUE 64,065 67,524 NET SURPLUS / (DEFICIT) FOR THE YEAR 2014 $ 2013 $ Net Surplus / (Deficit) is arrived at after charging the following expenses: Fees Paid to Independent Auditor (KPMG - Auckland), (Prior year: BDO) Audit of Annual Financial Statements 17,850 22,207 Monthly Reporting Assistance - 8,742 Depreciation Leasehold Improvements 2,990 2,990 Office Furniture and Fittings 22,167 27,669 IT Equipment 15,436 24,372 Tournament Equipment 23,019 13,892 Amortisation Trademarks 6,378 3,581 Websites 28,751 3,750 Minimum Lease Payments Operating Lease 118, , Services 4. New Zealand Men s Open The Organisation currently contracts a third party service provider to stage, manage and underwrite the New Zealand Men s Open. The Organisation contributes $200,000 towards the staging and management of the event (2013: Nil). NEW ZEALAND GOLF SERVICES 2014 $ 2013 $ Administration 886, ,196 Salaries 1,317,434 1,192,554 Slope Handicap Network 528, ,000 Marketing and Promotion 347, ,910 Turf Culture 154, ,411 TOTAL EXPENDITURE 3,235,117 3,067,

18 8. Elite Development and Events ELITE DEVELOPMENT AND EVENTS 2014 $ 2013 $ Clothing 3,890 2,154 Coaching 20,218 28,791 International Events 201, ,211 International Junior Events 22,561 3,641 National Events 278, ,881 National Junior Events 35,385 34,961 Sports Science Support 11,180 16,524 Sponsor Goods in Kind - 9,547 High Performance Programme 215, ,909 Tournament Assistance 21,869 33,224 Selectors Expenses 14,057 13,703 Toro Women s Interprovincial Championship Winners Auckland TOTAL EXPENDITURE 824, , Golf Development GOLF DEVELOPMENT 2014 $ 2013 $ Golf Development 32,077 14,403 TOTAL EXPENDITURE 32,077 14,403 Toro Men s Interprovincial Championship Winners Waikato 10. Junior Golf JUNIOR GOLF 2014 $ 2013 $ Sir Bob Charles Scholarship - expenses 4,500 4,500 District Junior Network Delivery 125, ,875 Promotion - 2,044 Junior Golf Events 42,516 38,022 School Programmes 1, GDM Training and Uniforms 1,000 7,262 Coach Education 48,279 53,793 TOTAL EXPENDITURE 223, , Mutual Assistance Plan NZG MUTUAL ASSISTANCE PLAN 2014 $ 2013 $ Administration and Insurance 46,500 46,500 District Associations Assistance Grants - - NZG Management Fee 2, Mutual Assistance Payments 114, ,442 TOTAL EXPENDITURE 163, ,220 The Mutual Assistance Plan is available to all members. The Plan provides insurance from a A+ rated insurance provider. It is a cover that provides compensation to members for damage to golf equipment that is outside the scope of cover provided by household or personal effects insurance. Its coverage includes All Risks and Public or Third Party Liability (subject to conditions of policy)

19 12. Cash and Bank Balances 16. Loan Receivable CASH AND BANK BALANCES 2014 $ 2013 $ Westpac - Bank Balances 91, ,981 Westpac - Players Trust 204, ,331 Petty Cash CARRYING VALUE 296, ,512 Westpac Players Trust account is separate unsecured bank account administered by the Organisation, which accrues interest at 3.25%pa (2013: 0.75%pa). The account is used to reimburse amateur players for specific travel and tournament fee costs. The money is effectively held in trust by the Organisation for these players. 13. Investments INVESTMENTS 2014 $ 2013 $ Westpac - Term Deposit 594, ,965 TOTAL CARRYING VALUE 594, ,965 Westpac term deposit balances are unsecured and accrue interest between 4.10% %pa (2013: 3.75%pa %pa). Maturity periods range from 6-12 months (2013: 6-12 months). LOAN RECEIVABLE 2014 $ 2013 $ Current 119, ,690 Non-current 116, ,836 TOTAL CARRYING VALUE 235, ,526 The Organisation was one of two full members of another incorporated society, New Zealand Sports Turf Institute Incorporated ( NZSTI ). In December 2010 NZSTI sold its business to Premium Power Limited (subsequently renamed to New Zealand Sports Turf Institute Limited). The Organisation has received a contractual right to free turf culture services from NZSTI for a period of 5 years as consideration for the transaction (in lieu of cash), beginning April The Organisation has therefore recognised a loan receivable and gain to profit or loss, measured at the net present value of the fair value of the services to be received, discounted at a market rate of 5%. 17. Trade and Other Payables TRADE AND OTHER PAYABLES 2014 $ 2013 $ Trade Payables 210, ,197 Accrued Expenses 7,350 7,895 TOTAL CARRYING VALUE 217, , Trade and Other Receivables TRADE AND OTHER RECEIVABLES 2014 $ 2013 $ Trade Receivables 494, ,720 Other Receivables 18,496 11,491 Allowance for impairment (835) (835) 511, ,376 Prepayements 188, ,242 CARRYING VALUE 699, , Provisions PROVISIONS 2014 $ 2013 $ NZG Mutual Assistance Plan Claim Provision Carrying Value at Beginning of Year 26,500 26,500 Reduction in provision - - CARRYING VALUE AT END OF YEAR 26,500 26,500 The provision represents the amount that is estimated that would represent claims relating to the current year in the unlikely event the NZG Mutual Assistance Scheme (refer note 11) was wound up. 15. Inventories 19. Employee Benefits Payable INVENTORIES 2014 $ 2013 $ Stock on hand 9,939 21,264 Merchandise 22,495 18,623 TOTAL CARRYING VALUE 32,434 39,887 EMPLOYEE BENEFITS PAYABLE 2014 $ 2013 $ Accrued Wages 30,402 20,115 Holiday Pay 94,255 84,026 TOTAL CARRYING VALUE 124, ,

20 Waitakere Golf Club 22. Intangible Assets INTANGIBLE ASSETS 2014 $ 2013 $ Trademarks Original Cost 54,266 35,810 Accumulated Amortisation (23,914) (17,536) Websites Original Cost 129,563 60,000 Accumulated Amortisation (32,501) (3,750) TOTAL CARRYING VALUE 127,414 74,524 Trademarks under the control of the Organisation include: Incorporated; and Junior Tiger 23. Investment in Associate 20. Sir Bob Charles Scholarship The Sir Bob Charles Scholarship has been accounted for as a separate liability account. These funds are invested on behalf of Sir Bob Charles where the Organisation can only use the interest for Scholarship payments. To maximise interest revenue from the funds, the funds are invested in high interest term deposits with New Zealand registered banks - refer note Property, Plant and Equipment In November 2001 the Organisation paid $140,000 to acquire 500 shares, representing 50% of the issued shares of Network Ltd ( NZGN ). In December 2001, NZGN issued a further 50,000 shares, of which the Organisation acquired 25,000 for the consideration of $1.00 per share; 15,000 shares remain unpaid and uncalled. In October 2012 the shareholders of NZGN resolved to reduce the number of shares on issue to 20,000, of which now the Organisation holds 10,000, thereby cancelling 15,500 shares that the organisation owned. NZGN s primary business is the operation of the Slope Handicap system on behalf of the Organisation and the development of golf management system software. NZGN has a balance date of 31 March and the entity is not audited. The Directors of Network are not aware of any significant events or transactions since NZGN s balance date. RESULTS OF NZGN 2014 $ 2013 $ PROPERTY, PLANT AND EQUIPMENT COST $ ACCUMULATED DEPRECIATION $ CARRYING VALUE $ Share of Operating Surplus Before Income Tax 169,226 55,555 Income Tax (47,383) (15,555) 2014 Leasehold Improvements 29,896 (11,046) 18,850 Office Furniture 256,812 (224,240) 32,572 IT Equipment 235,882 (213,410) 22,472 Tournament Equipment 271,108 (168,221) 102, ,698 (616,917) 176, Leasehold Improvements 29,896 (8,056) 21,840 Office Furniture 226,626 (202,073) 24,553 IT Equipment 229,218 (197,974) 31,244 Tournament Equipment 169,720 (145,202) 24,518 SHARE OF NET SURPLUS 121,843 40,000 Investment in Associate Carrying Value at Beginning of Year 141, ,720 Share of Recognised Surplus 121,843 40,000 Dividend Paid (50,249) (50,249) CARRYING VALUE AT END OF YEAR 213, , ,460 (533,305) 102,

21 24. Commitments and Contingencies INTANGIBLE ASSETS 2014 $ 2013 $ Operating Lease Commitments Lease commitments under non-cancellable operating leases are as follows: Current 68, ,812 Non Current 67,709 69,786 TOTAL OPERATING LEASE COMMITMENT 135, ,598 Capital Commitments The Organisation has agreed to pay NZGN a handicap maintenance fee of $41,667 (excl. GST) per month, and a website maintenance fee of $6,250 (excl. GST) per month. Contingencies There are no contingencies as at reporting date (2013: $nil). 25. Related Party Transactions Board Members E Bateup and M Ward represent the Organisation on the Board of Network Ltd ( NZGN ) on a voluntary basis. The Organisation received a Directors fee from Network ( NZGN ) in 2014 of $48,000 (2013: $48,000). The Organisation paid Network Ltd ( NZGN ) a service fee to maintain and operate the Slope Handicap Network system in 2014 of $528,750 (2013: $535,000). The Organisation received a donation from Network Ltd ( NZGN ) in 2014 of $50,000 (2013: $50,000). 26. Going Concern A Heads of Agreement was entered into by the Organisation and the New Zealand Professional Golf Association (PGA) on 23 April The intention of this agreement was to create a whole of golf strategic framework and investigate any alignment or integration opportunities. Hastings Golf Club An Establishment Committee is tasked to recommend the approach to potential alignment or integration of the NZPGA and the Organisation, and to oversee any change process necessary. The outcome of this process is yet to be finalised, however the Directors believe the outcome will not affect the going concern assumption of the Organisation as a continuing entity. The Directors have continued to adopt the going concern assumption of the Inc. for the year ended 31 December

22 27. Events After Reporting Date Commercial Partners There were no material events after reporting date (2013: nil). 28. Net Cash Flow from Operating Activities NET CASH FLOW FROM OPERATING ACTIVITIES 2014 $ 2013 $ Surplus / (Deficit) for the Period (51,190) 54,415 Non Cash and Non Operating Items Interest - Loan Receivable (14,610) (20,762) Share of Associate Surplus (121,843) (40,000) Depreciation 63,612 68,923 Amortisation 35,130 7,331 Allowance for Impairment - - Bad Debt Written Off 6,879 5,134 Non-cash Services Received - Turf Culture 133, ,944 Provision - Reversal - - Loss on Disposal - - Funding Partners Official Suppliers TOTAL NON CASH AND NON OPERATING ITEMS 103, ,570 Movement in Working Capital Items Reduction / (Increase) in Trade and Other Receivables (122,316) (62,287) Reduction / (Increase) in Prepayments 37,078 3,796 Reduction / (Increase) in Inventories 7,453 27,504 Reduction / (Increase) in GST Receivable (22,314) 93,191 Reduction / (Increase) in Trade and Other Payables and PAYE Payable* (208,500) (18,460) Reduction / (Increase) in Income in Advance (34,526) 65,326 Reduction / (Increase) in Employee Benefits Payable 20,516 1,817 Reduction / (Increase) in Players Trusts (10,016) 116,239 Reduction / (Increase) in Sir Bob Charles Scholarship - (1,338) Associate Partners NET MOVEMENTS IN WORKING CAPITAL ITEMS (332,625) 262,708 NET CASH FLOW FROM OPERATING ACTIVITIES (280,667) 472,693 *Excludes Payables relating to Investing Activities Community Partners 42

23 THE VALUE OF GOLF The Game of Golf Provides Unique and Lifelong Enrichment. VISION Golf is New Zealand s Favourite Pastime. MISSION To Grow the Love of Golf. nzgolf@nzgolf.org.nz Tel +64 (0) Fax +64 (0) Volunteers at the Waitangi Golf Club 44