MANLY GOLF CLUB LIMITED

ABN 18 000 007 465

107th

ANNUAL REPORT

2011 – 2012

1

MANLY GOLF CLUB LIMITED

ABN 18 000 007 465

President

K. J. W. MUNRO

Vice President D. J. CLEARY

Captain J. MATER

Vice Captain *P. J. KELLS

Treasurer R. R. HOLM

Directors G. M. COYNE

R. W. NORRIS

J. P. O’CONNOR

R. O. PFAFFLIN

General Manager E. J. HYNES

Life Members Mrs. E. L. CAVILL

W. JAMES

Auditors CABEL PARTNERS

*retired from the Board on 5th

October 2012

2

PRESIDENT’S REPORT

After 13 years’ work by a lot of people, our

new course was officially opened for play on

Friday 13 July 2012, almost 6 years after

Members overwhelmingly gave the go-ahead.

As it turned out the ensuing years were

anything but incident free, with a combination

of regulatory requirements, site difficulties and

weather causing cost blow-outs, design changes

and delays.

On the positive side, at no stage did we

compromise the underlying construction

parameters. Consequently Members can be

assured that the course has been built to last,

and, when grown in, will present far better than

ever was possible with our heritage layout.

Time will tell but for what these things are

worth, I am confident the new course will see

our return to the list of Australia’s top courses

after many years of absence.

Without the support of successive Boards, a

patient membership, reciprocal playing rights

and competent project management, the

outcome would have been much different.

As Board Director responsible for the course

redevelopment for the last 10 years, I am

extremely proud of what has been achieved. I

am not happy that the final cost was greater

than we originally envisaged and the reasons

behind this are contained later in this report.

However, I must add that in this context, as

Members, we owe a great debt of gratitude to

Ed Hynes as Project Manager and Michael

Bradbery as Project Supervisor for completing

the course for the cost incurred.

In short, our site being on a flood plain,

presented many challenges and these were only

accentuated by the extreme weather that

prevailed throughout most of the construction

period. While we negotiated away the

construction cost increases incurred due to

weather delays and damages, we still had to

wear the impact on our trading caused by the

delay in opening the full 18 holes. Members

who want to really understand the challenges

faced should refer to the unabridged version of

the Course Redevelopment story that appears

later in this report.

From a financial perspective too, the project

was not without challenge. In fact, in mid- 2010

we faced the real prospect of not being able to

complete all 18 holes due to a lack of funding.

Delaying completion of the final 7 holes

indefinitely was never seriously considered.

This outcome would have left us with two

different grass regimes, meant almost half the

course was still subject to the problems that

plagued the original course and would have

seriously impaired our ability to retain existing

members and/or attract new members.

That was why we had approved by members at

the 2010 AGM the proposal to help fund the

cost of completing the course by selling excess

property. As we go to print we have sold the

two blocks of land for $1.875m and the middle

of the three houses for $800k; the remaining

two houses will be offered for sale in the near

future.

As foreshadowed in my recent report to

members on the course redevelopment, we

expect at the conclusion of the real estate sales

to be left with a core debt of some $5m. To put

that into context, our debt when we completed

the Clubhouse some 10 years ago was $3m.

We are recommending to future Boards that to

ensure inter-generational equity, the debt be

paid off over 18 years. Again, I repeat, as

evidenced by the growth in new members and a

return to pre-construction trading activity, we

are confident that MGC can handle this level of

debt.

I am very aware as outgoing President, it is

neither in my power nor my right to bind future

Boards’ decision-making in any way. Having

said that, I do think it appropriate at this time

that I document the assumptions underpinning

the statement that the Club can handle the

residual debt.

New Members

An important justification for rebuilding the

course was the need to reverse the steady

decline in membership since 2003. 7-Day

playing membership numbers bottomed in 2010

at 573, 5-Day playing members in 2009 at 399.

In 2011 and 2012 respectively we attracted

some 55 and 62 new 7-Day members. The

equivalent numbers for 5-Day playing members

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were 31 and 16, respectively. Over the two

years 34 of the 5- Day playing members were at

the discounted rate. I would like to take this

opportunity to welcome all our new members

and thank them for their faith in the future of

this wonderful golf club. In the same vein also,

a particular thanks to those members who had

the foresight, confidence in the future of Manly

Golf Club and the wherewithal to purchase a

10-year Membership at what was probably the

low point in the redevelopment process.

Going forward, we are assuming we will attract

the equivalent of 36 new full fee-paying

members per year for the next three years and

24 per year thereafter.

Levies

A controversial topic. Clearly the outgoing

Board cannot constrain in any way future

Boards decision-making. Having said that we

are assuming Club trading will return to 2009

levels from next year and inflation will be 3%

(and thus Prices, Wages and Subscriptions will

similarly need to increase). On that basis the

$250 Construction Levy should be in place

until the conclusion of the 2013/14 financial

year. Hopefully the new course, consequent

increased Member/ Visitor activity and

corporate days will see a much better trading

performance than 2009. Whether this results

and thus reduces the need for such a levy only

the Board of the day will have the information

needed to make such decisions when and as

they fall due.

Please see the Treasurer’s report for further

discussion and the outcome of the above

assumptions.

Unfinished Business

A toilet on the course. As we go to print we

are submitting a DA for a sewer connected

facility next to the 5th

tee. Because we are on a

flood plain and in an environmentally sensitive

area, we have been advised approval will not be

automatic.

The Bowlers Shed. A big thank-you to the

Bowlers for agreeing to give up their old shed

so we could more easily sell the vacant land

next door. We have submitted a DA for a new

shed to be located in the north-east corner of

the bowling rinks. It will have BBQ facilities

and as such be available to members for small

private functions when not being used by our

Bowlers. We expect to begin construction by

the middle of 2013.

Broader Member Board Representation. I

have prepared a discussion paper that canvasses

the ‘pros’ and ‘cons’ of extending Board

Membership to 5-Day playing members (both

male and female) on a proportional basis

without any change to playing rights. Clearly

the incoming Board can do with it as they see

fit.

Thank-You’s

Another challenging year has come to its end,

and again every Director gave willingly of their

valuable time to attend to the policy and

business of the Club through the various

Committees and Board Meetings. Without a

doubt the most challenging of tasks, and the

one that occupied most time and over which

there was most discussion, was completing the

redevelopment of the course and the funding

thereof.

My thanks go to each Director for their ongoing

commitment, their wise counsel, their opinions,

their achievements for the Club, their support

and for their friendship. It has been a privilege

to have worked with you all. To those

Directors retiring at the end of this year, I hope

you enjoy your new found time. To those

continuing on, I know the future of Manly Golf

Club is in good hands.

I would also like to thank the members of the

Women’s Sub-committee, led by Anne

Hutchison and Barbara Maggs.

The staff of this golf club is outstanding. Lisa,

Denise, Belinda, Michelle and Sharyn in the

office. Catherine, Markus, Richard and Justine

for Functions and Social, and Alan and the Bar

staff for always providing efficient and friendly

service.

To Michael Bradbery, Jason and the team

thanks for keeping us playing golf on a much

constrained layout under mainly unhelpful

weather conditions. Now our new course is

finished it is a fitting reward that you finally get

a chance to show members how well our course

can be presented.

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Thanks too, to Phil Baird, Ben Owen and the

Golf Shop staff for doing a great job during a

difficult year. I know it has not been easy

keeping members happy during the many

course changes and weather delays that we saw

this year.

We have now had some three early Monday

morning ‘Working Bees’ when a small number

of Members have turned up to help our Greens

staff clean up storm damage, pull out self-

seeded Casuarinas and generally tidy the course

up. I thank each and every one of you and

look forward to increasing numbers of members

being prepared to donate two hours of their

time in a worthwhile cause.

Lastly, thanks to Ed Hynes for ably managing

the Club while completing the golf course

redevelopment. A particular thanks for

managing the cost base in line with our

somewhat constrained trading conditions.

As some of you know I was a reluctant

President. When I was asked to join the Board

to fill a casual vacancy in August 2000, I

accepted because I wanted to play a part in the

course redevelopment. I had no inkling then of

how big a part, or how long it would eventually

take to realise that ambition. So thank you to

President Maurice Munsie and the Board of

2000 for approving my selection. Thanks also,

to President, Gerry Elkan who appointed me

Chairman of the Course Redevelopment

Committee back in early 2003. However, my

biggest thanks must go to you, the members for

your faith and patience over the last 6 years.

Finally I would like to say what a privilege and

honour it has been to have served as President

for the last five years. I wish the new President

and the incoming Board every success.

Deceased Members

The Board noted with sadness the passing of

the following Members; Geoff Cotton, Allan

Doutreband, Frank Ellis, Warren Gleeson, Tom

Hartigan, Len Hinde, Alexander Morrison, Mel

Parnell, Joseph Ryan, Ken Taylor and Henny

Wennink,

Ken J W Munro

CAPTAIN’S REPORT

Looking back 2012 has been an exciting year.

We started the year playing nine holes twice

until the 14th of July when we had our opening

of the full new 18 holes. After nearly 3 years of

disruptions we now have a wonderful world-

class golf course that we can all be proud of.

Although there have been many people

responsible for finishing this project there is no-

one that has done more than our President, Ken

Munro. Ken joined the Board as a Director in

2001 and 2002. From 2003 to 2007 he was

Vice President and from 2008 to 2012 as

President he has led the Club through some of

the most difficult times in our Club’s history.

He has been on the Course Redevelopment

Sub-Committee from the beginning and has

chaired that committee through the construction

period over the last three years. Ken has been

part of the Finance, Match and Greens Sub-

Committees over the many years and has

chaired the current Board with great leadership

skills to get this Club where it is today. As

Ken is retiring from the Board this year I would

like on behalf of all the members to thank him

for his fantastic efforts over the years and wish

him good golfing in his retirement. Swing

slow Ken.

Special mention should also be made of the

efforts of our CEO, Ed Hynes. Ed was largely

responsible for getting us the two million dollar

grant from the Federal Government. He also

saved us millions of dollars with his

negotiations with the contractors in getting a

final price for the construction of the course and

for bringing it in on budget. His efforts in

managing the construction of the course have

been terrific and we thank him for it.

I would also like to thank Michael Bradbery

and Jason Martin and their team for the

wonderful way that the course has been

presented throughout the construction period.

This year for the first time in three years we

have been able to run all our Board events and

the winners are listed later in this annual report.

I would like to congratulate our new Club

Champions Andy Bryon and Christine Gordon.

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To celebrate the opening of the new course we

introduced new perpetual trophies called the

Manly Links Trophy. These trophies were for

the Men’s Competition, 2BBB, the Men’s Open

Draw Competition and the Ladies Competition.

Again congratulations to the inaugural winners.

This year we fielded representative teams in the

Major Pennants, Senior Pennants, Inter-club

Challenge as well as the Northern Peninsular

Challenge. All teams preformed well and I

congratulate all the team members for their

efforts. Individual reports follow my report.

Unfortunately we not able to field an Eric

Apperly team this year but look forward to next

year.

I would like to congratulate all our lady

members that represented the Club in the

various pennant teams. Well done to the Bronze

II Pennant team that won their competition.

With our course shortened this year we were

unable to host the team from Commonwealth

Golf Club this year but they will be visiting us

next year in March and we look forward to their

visit and getting our year about competition

back on track.

This year our Match Sub-Committee has

introduced a Junior Golf Program to encourage

young people to take up the game of golf and

hopefully find some young champions. This

program has two parts to it. Firstly we want to

introduce our new young members to each

other and get them playing golf together. This

will encourage young members to want to play

in our Encourage Shield team and the Eric

Apperly competitions. The second part of this

program has been to introduce coaching clinics

for sons and daughters of members along with

their friends to learn the game of golf and

encourage them to join the Club when they are

old enough. We now have about 30 children

aged from 7 to 15 attending the clinics run by

our professional team on both Sunday and

Tuesday afternoons.

With the completion of the course we now have

excellent practice facilities and it is great to see

so many members out there improving their

golf.

I would like to thank my fellow members on

the Match Sub-Committee: Ric Holm, Glenn

Coyne and Ken Munro along with Ed Hynes,

Phil Baird and in particular my Vice Captain,

Phil Kells. His help with the course set-up and

developing all of the many local rules during a

trying time has been appreciated. His computer

skills also have allowed us to alter the scorecard

set-up as required.

A special thank you to our Lady Captain

Barbara Maggs, who has done a terrific job as

Captain in her first year. Her contributions at

Match meetings have always been positive in

raising many issues that have concerned women

members.

On behalf of the members I would like to thank

Phil Baird and Ben Owen along with Richie,

Taylor and Nathan for their assistance in

making golf at Manly an enjoyable experience.

Thank you also to the bar and office staff for

looking after us throughout the year.

Michael Bradbery and his team must be

congratulated again on the way the course has

been built and maintained throughout three of

the most difficult years the Club has known.

Our new course is something really special and

this is largely due to their efforts. This course

will only get better with age and members can

now boast one of the best courses in Sydney.

As members we must do our bit to maintain it

by raking bunkers, filling divots and repairing

pitch marks.

I would like to thank our new Course

Marshalls. Their presence has improved the

pace of play and members must obey any

instructions issued by them. All members must

keep up with group ahead, not ahead of the

group behind, to ensure an enjoyable round for

all.

Finally I would like to thank all the members

for their patience and understanding during the

construction period. It has been a difficult time

but we can now look forward to a great 2013

with all the knockout matches being played on

a wonderful golf course.

John Mater

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Major Pennant

In the 2012 Pennant Season Manly was

grouped with Monash, Ashlar and Camden in

Division 2. Our first match being away versus

Camden, the boys fought out a well-earned half

which was a great start to the season. With

tough trips away Manly had a great win at

home against Camden and led Ashlar all day to

lose 3 matches on the last just to go down in the

end. There was good spirit in the team all year

and an example of this with Anthony Mellowes

having to play a certain A Downton from

Ashlar who plays off plus 5 away. Anthony

being only a couple down at the turn thought

that having a beer at the halfway house might

unsettle him. Unfortunately not, eventually

losing 3 and 2 after giving away 12 shots which

I think was a win for Manly. After the series of

home and away matches Monash were the

winners and progressed to the semi-finals. With

some promising results and a new golf course

that I am sure will give us a home course

advantage we are looking forward to the 2013

season.

Thanks to everyone who helped and

participated this year including John Mater,

Phil Kells, Phil Baird, Stuart Strong, Tim Paul,

Rob Arbon, Julian Jackson, Shane Golding,

Andrew Bryon, Chris Connolly, Anthony

Mellowes and Kieran Chowdry.

Michael Hill

Masters Pennant

In our Division this year we were drawn

against Northbridge, Wakehurst and

Carnarvon which was a big change from

previous years in which we had local teams in

our division. This year we welcomed Nick

Reid, Steve Avis, Phil Garden, and Mark

Masterton into Master’s Pennant. The team of

Darryl Hearsch, Phil Howard, Keith

MacKenzie, Mark Larcombe, Mike Buckling,

Tony Smith, Mal Avis, Brent Haverfield, Mark

McDougall and our rookies had mixed results

due to the wash-outs and postponements due to

heavy rainfall in April and May. We

unfortunately did not play our home match

against Carnarvon which ultimately decided

the very close division. No club in our division

won a match away from home. So the 2 wins

and 3 losses out of a possible 6 matches meant

we finished 3rd in our division.

Everyone who played enjoyed the challenge

and the renewing of old friendships (David

Glassop ex-Manly member from Northbridge)

and played some good golf on many occasions.

Everyone should be happy with how they

played. We are all looking forward to next year

and with our tough new 18 in play then our

winning form should also follow as the local

knowledge we now have will prove a very big

advantage to us at home. The team also

appreciated the support given from Phil Baird

and our Club Captain, John Mater and

especially to the members of Manly Golf Club

for allowing us to use some Sunday tee times.

Darryl Hearsch

Eric Apperly 2011 Report.

In November 2011 Manly GC entered a team

for the Eric Apperly Shield consisting of Tim

Paul, Jamie Titherley, Shane Golding, James

Cockerill, Kieran Chowdry, Neil Chowdry &

Mitch Pack. The team was ably managed by

Rob Cockerill.

The Clubs we competed against included: The

Australian, North Ryde, Muirfield & Pennant

Hills, a terrific line up of wonderful courses

which the lads enjoyed very much.

However, equally impressive was the quality of

the players in each of these teams and in fact

when we played The Australian team their total

handicaps added to ‘scratch’. . . compared to

our total of 30. As expected, The Australian

team went on and won the Shield.

The competition and the spirit in which each

game was played were tremendous and our

boys should be commended on the way in which

they represented Manly GC.

The Club will compete again in the Eric

Apperly Shield next year and will continue to

pursue the growing junior golf opportunities in

the Club.

Philip Baird

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Interclub Challenge Cup 2012

Interclub is an annual team event played

between the original 16 Group 1 Sydney golf

clubs. The draw this year had us in Section 1

with NSW, Royal Sydney and Bonnie Doon.

Following a successful number of years under

former captain Gary Dainton, including a few

final appearances, the team was to be

captained this year by Julian Jackson.

With only 3 matches played leading into the

finals, getting off to a good start is important,

and our team was faced with Royal Sydney at

home first up. On one of the windiest days of

the year, many of the Royal Sydney players

commented it was the hardest the course had

played in years, and given our combined

handicap of 52 versus the 32 of Royal Sydney, it

appeared we had a tough task ahead. The result

for the day of 4-all was good result.

Week 2 was at Bonnie Doon on their recently

completed new layout. We were up against

NSW who had defeated the hosts the previous

week at Royal Sydney, and again were faced

with a handicap differential of 51 to 32. The

conditions were cold, wet and generally

unpleasant. Most of the matches were tight with

3 of them going to the 18th

hole. Our team went

down narrowly 4 ½ to 3 ½. In the other match

Royal Sydney were no match for Bonnie Doon

going down 6 to 2 – this left us needing a win

against Bonnie Doon at home to make the

sectional final.

Week 3 at home in near perfect conditions, the

handicap differential was against us 50 to 34,

but the team was confident playing our new

North Links twice would be to our advantage,

well so we thought. The 5 ½ to 2 ½ result to

Bonnie Doon was disappointing and left us to

play Royal Sydney at NSW the following week

in the bottom two playoff

.

In the sectional final at NSW in appalling

conditions were beaten 6-2 by Royal Sydney. In

a disturbing twist Kogarah managed a 4-4 half

against Pymble in Section 2 to catch us on the

overall table on 1 team point and 12 individual

points. This dragged us back to being joint

holders of the ‘wooden spoon’ for 2012.

Captain Jackson was particularly concerned by

this result as the Captain’s ‘Wooden Spoon

Speech’ is the highly anticipated highlight of

the end of season dinner. A perfectly planned

and executed performance by Captain Jackson

was well received and looks to have ensured,

through some nifty sleight of hand, that the

trophy no-one wants will not set foot on MGC

premises (well for 2012 anyway).

Not our best year in the Interclub Challenge,

but as always it was an enjoyable event played

in great spirit despite the weather on most days.

We now look forward to 2013 in section 3 with

Kogarah, Avondale and Oatlands as we look

back on 2012 as our ‘rebuilding year’.

On behalf of myself and the Captain Julian

Jackson, thank you to the Club for supporting

this event, members for coming to support our

team and to our players Andy Bryon, Chris

Connolly, Stephen Day, Michael Hill, Craig

Bernhardt, Anthony Mellowes, Gary Dainton,

Michael Krohn, David King, David Ross,

Mason Paynter, Ken Munro and Darryl

Tweedale who all represented MGC admirably

this year.

Phil Kells

Northern Peninsula Interclub Challenge

A Trophy at Last – but alas, not the one we

really wanted!

The Northern Peninsula Inter-Club Challenge

celebrated its tenth anniversary, with the

final(s) and Championship Dinner being held at

Manly.

Manly commenced the competition with a

sound 5.5 to 2.5 win over Bayview, round 2 saw

an excellent win against Cromer 5.5 to 2.5,

round 3 and another win, this time against

Wakehurst 4.5 to 3. We were looking good for

a spot in the Final when we came up against

our “bogey team”, Mona Vale, the perennial

Wooden Spoon Holders and they again proved

to be our downfall with a 4 to 3.5 victory. In

the last round before the finals, playing Long

Reef we needed to win 2.5 matches to make the

final after leading 5 to 2.5 at the ninth we were

looking good, only for the “wheels to fall off”

as so often happens in golf and we were

defeated 5.2 to 2. So close but so far away.

We had qualified to play Bayview for the

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“Would-Be Trophy” (play-off between the third

and fourth placed teams). We had a great win

and proudly held up some silverware at the

Championship Dinner. Next year we hope to

hold up the Northern Peninsula Inter-Club

Challenge Trophy. Our congratulations to

Cromer who defeated Long Reef 4 to 3.5 in the

final.

Team selection was disrupted by medical

operations and travel, but it was nice to

welcome “new oldies” Ric Bloore, John

O’Connor, Paul Nichols, Dennis Brewer, John

Bergin, to join Ken Munro, Peter Haynes,

Richard Thomas, Terry Maloney, Peter Maggs,

Bob Pfafflin, Grahame Nagel, Graham

Carmichael, Richard Evans, Gavin Fish, and

Brian Gordon.

The team was captained by Richard Thomas

and Bob Pfafflin. A special mention is made of

Terry Maloney and Bob Pfafflin, both of whom

have played in every year of the NPICC . . .

they don’t look seventy!

All teams convey their thanks to Denise Darby

for all the work she does as the NPICC

Secretariat.

Bob Tuckerman

GREENS’ REPORT

Being the first annual greens report since the

full new course has been completed it is

exciting now to see the complete course and

what it will become over the next couple of

seasons as the turf and landscape plants become

fully established.

The priorities for Michael Bradbery and the

greens staff is to progress the establishment and

health of the new fairways while greatly

reducing weeds. Aeration of fairways to

relieve the compaction from construction and

weed control will continue throughout summer.

Providing we get a normal (much warmer than

last year) summer we should see a marked

improvement in this regard.

The wet winter certainly tested the surface

drainage of the new holes with the recovery

after inundation greatly improved from the old

course. With our annual average rainfall

coming in the first six months of the year we

got to see how it would perform in the worst

case scenario. While closures still occurred

there was less than what has been historically

recorded in similar extreme years. As

explained by the Course Superintendent the

reconstruction dealt with the surface drainage

pushing water after inundation or ongoing rain

to a network of pits and pipes. This network

becomes the foundation to now install sub-

surface drainage. This is done after

construction to allow settling and establishment

of turf to enable it to be done more efficiently

and accurately. Sub-surface drainage work will

continue on from last year when the 1st, 10

th

and 8th

holes had drainage installed. During

the period from November 26 to December 14th

the sub-surface drainage program will continue

on the 2nd

, 3rd

, 5th

and 6th

holes.

Reflecting on the past year has seen the Club

come through the final stage of construction

under some appalling weather conditions.

These conditions also did not help the holes 1-

10 that were under substantial pressure being

played twice during one of our wettest winters

and still being very immature. Maintenance on

the congested nine holes in play was very

difficult. It certainly was a sigh of relief for

the greens staff to get the final grass down

(some of which was laid 5 times owing to

flooding and washaway) and open the full 18

holes.

The completion of the stormwater harvesting

pond leaves only the assessment of the water

quality from the pond and design of the

treatment to enable it to be irrigated safely.

Stormwater receives initial treatment before the

pond through the new Gross Pollutant Trap.

The water is then improved by sunlight as the

water is circulated by six sub-surface aerators.

The water is then filtered as it is pumped

through the transfer pump. It is likely this

water will be first treated with UV lamps to kill

viruses before being chlorinated to kill any

remaining bacteria. This is necessary as it is

inevitable that some level of sewage gets into

the stormwater during certain rainfall events

due to the old sewer and drainage networks in

the catchment.

9

Members should be reminded that the internal

and external banks of the Stormwater

Harvesting Pond are off limits at all times.

These areas are sensitive, are not stable to walk

on and are easily damaged.

With Burnt Bridge Creek now running through

the course as opposed to around it, members

will now be much more aware of what comes

down the catchment with the stormwater. The

Course Superintendent recently made a

presentation to the Manly Lagoon Catchment

Co-ordinating Committee on the new course

and the impacts of sediment, debris and rubbish

being deposited in the new naturalised creeks.

Manly Council have recently informed the Club

they will be installing a large sediment trap in

Manly West Park to contain the sand and

sediment before it reaches the course. An

ongoing commitment from Council to maintain

this sediment basin should greatly reduce what

is being seen in the new creeks such as in front

of the 8th

green. Inquiries have also been made

about the removal of floating rubbish etc.

before it reaches the course.

The Club will have contractors on site in late

November /December removing some of the

accumulated sediment and organic matter in the

creeks on the north links. Hopefully the

frequency of this will be reduced following the

work in Manly West Park.

On top of the water quality problems above is

the effect of the nutrient load which deposits in

Cemetery and Keirle creeks when flows stop.

The smaller amount of water coming through

these two creeks and their smaller catchments

does not sufficiently keep them flowing, which

results in lagoon waters backing up, increasing

in temperature during warm weather and

suffering from algal growth. Options to

improve the visual quality of the water are

being investigated with a trial of re-circulating

lagoon water to commence.

Other priorities for the Course Maintenance

Department in the next 12 months are:

- replacement of the underground fuel storage

at the maintenance facility;

- lodge the DA and oversee construction of

the 5th

tee toilet.

Maintenance equipment purchased in the last

12 months was two new Toro walk-behind

mowers for greens, Toro boom spray and a

Toro surrounds mower. As members would

have noticed throughout the construction

process many surfaces particularly in stage 2B

were grassed while completely saturated.

These soils have now dried and settled at

varying rates to leave very lumpy and uneven

surfaces. A combination of coring and top-

dressing will greatly assist in the gradual

process of smoothing out these surfaces over

the coming years. One of the first priorities we

intend for equipment this financial year is a

fairway coring / core processor machine. This

equipment will allow the more frequent core

aeration now required. To relieve compaction

the corer pulls out a small plug of turf and soil

which the attached core processor chops up and

spreads back onto the surface. This

combination of aerating and the light top-

dressing that results will speed up the difficult

process of relieving compaction and levelling

the new surfaces. This equipment will also

preclude the need to bring in contractors to

renovate fairways which is the current practice.

Two impressive milestones were achieved this

year with members of our course staff, Alan

Hill and Grant Whitson, reaching 40 and 20

years of service, respectively. Alan has been a

groundsman with the Club since he was 15

while Grant came to the Club as a Fitter and

Turner and has refined his skills in the

specialised field of golf course equipment

maintenance. I would like to thank them on

behalf of the Greens Sub-Committee and all

members for their service and loyalty.

On behalf of the Board, our Greens Sub-

Committee and all our Members I wish to thank

Michael and Jason for all their efforts

maintaining what we had and bedding down the

new during the course redevelopment and ask

them to pass on to our greens staff our thanks

for their care and nurture of our course and the

pride we can have in our course from their

efforts. Members please let’s do our bit, pitch

marks, divots and bunkers!

10

To members of our Greens Sub-Committee,

Ken Munro, John Mater, John O’Connor,

Barbara Maggs, Phil Baird and Ed Hynes, I

thank you for the effort and contribution you

have made to the committee.

Finally thanks to Phil Kells who was, before

standing down from the Board, a good and

constructive member of the Committee. Phil

took very much to heart the care of the course

and his contribution is missed.

Ron Norris,

Chairman, Greens Sub-Committee

MEMBERSHIP REPORT

With the building of a new golf course and the

accompanying inconvenience and disruption

there is always a reduction in Membership

greater than the normal attrition rate.

As reported by the Chairman of the

Membership Committee last year, 2011 was the

year that a turn around occurred with regard to

declining membership. That trend has

continued throughout 2012 and up to the end of

October we have had 83 new members, forty

two (42) are full 7-Day playing members and

fifteen (15) 5-Day playing members all of

whom joined under the Spouse Discount

Incentive. The balance is comprised of two (2)

10 year 7-Day playing members and a number

of Intermediate 7-Day playing members. With

the opening of our new course there has been

considerable interest and consistent enquiry

from prospective members. It is expected that

with the resumption of trade days and the

greater exposure of our course, membership

applications will continue to come in.

There had been three intermediate categories

until September this year namely (18 to 24

years), (25 to 30 years) and (31 to 35 years).

These categories applied to both 7-Day playing

members and 5-Day playing members. These

individual categories provided for a scaling of

the full 7-Day or 5-Day playing subscriptions.

In September the Board approved a sub-

division of the first intermediate category into

18 to 22 years and 23 to 24 years as an

acknowledgement that 18 to 22 year olds are in

the process of establishing a career or

occupation. Many of our young golfers

moving into this age group have been Junior

Members of the Club and without this

adjustment we risked losing these young

members.

The Membership Committee is also considering

the overall membership structure of the Club in

the light of recent developments in other

Sydney Golf Clubs. Our President, Mr Ken

Munro, has prepared a draft paper setting out

various possible options as to the future

membership structure. That paper is under

review by the Membership Committee and will

provide the basis for a more comprehensive

report and recommendation to go to the Board

for its consideration in the near future.

New members will be welcomed and those

achieving the milestone of 50 years

membership of the Club acknowledged at the

Club’s Christmas function on 30 November

2012.

Glenn Coyne

Chairman – Membership Sub-Committee

THE FOUNDATION

Members will no doubt be aware that the Manly

Golf Club Foundation was established by Deed

on 2nd

November 2011. It was launched to

Members on Wednesday 4th

April 2012 when

over one hundred members attended a dinner

with five times British Open Winner Peter

Thomson addressing the gathering.

The purpose of the Foundation is set out in the

Foundation brochure but is generally to help

preserve and improve the standards and

facilities of Manly Golf Club and to provide a

fund which will cushion the impact of any

unforeseen financial stress.

As you are aware the Club is carrying an

unprecedented level of debt which was used to

fund the very successful course redesign. The

Board is prudently focused on reducing this

obligation as soon as possible which will make

it difficult to implement other improvements in

the immediate future.

11

There are a number of projects which have been

identified as worthwhile and it may be that a

member of the Club would like to make a

donation to the Foundation directing the gift to

be spent on a specific project i.e.:

A rubber walking track on the course’s

concrete paths, estimated cost $400,000.

A first stage could be the replacement of

the failing rubber outside the Clubhouse.

North Links toilet (currently seeking

Council approval, estimated cost $35,000.

Lighting the dam, visible from the

Clubhouse, estimated cost $15,000.

Relocation of the Starter’s Hut, estimated

costs $50,000.

Upgrade of the Chapel décor, estimated

cost $50,000.

The Foundation currently has a fund of $23,000

held in trust by the Golf Club pending

establishment of a Foundation bank account. It

is anticipated that this $23,000 and accrued

interest will be transferred this year.

Contributions throughout the year were

received from:

Manly Golf Club (establishment)

T J Hartigan (in memory of)

A W Gleeson (in memory of)

P Stockdale (in memory of)

Maurice Munsie

Chairman

CLUB SECTIONS

Ex-Service

The WW1 story boards were placed on the tees

for Remembrance Day 2011 and special cards

were printed for both ladies and men to

commemorate Remembrance Day. We raised

some funds for Legacy with poppy sales over

three days. As Remembrance Day falls on

Sunday this year and the Club Championships

are on that day the story boards will be placed

out on the Saturday 10th, Monday 12th and

Tuesday 13th November. Last Post, one

minute's silence and Reveille will be played at

11.00am on Remembrance Day.

Our themes for this year have been:

Remembering 1942; Fall of Singapore; Battle

for Australia; Bombing of Northern Australia;

Coral and Java Seas; Kokoda; Milne Bay;

Gona; Buna; Western Desert; El Alamein.

Our Anzac Day service was held on a fine

sunny day and again we were fortunate to have

our Bugler, Liam Chapman, play the Last Post

and Reveille. Special cards were printed for the

day and storyboards were displayed on the tees

and designated areas honouring our members

who fought in WWI. Some monies were raised

for Legacy and Paul Fenn again represented the

Ex-Service Section of the Club at the Manly

Corso Service at 11.00am.

Our Annual Golf Day and Dinner was held on

Wednesday 26 September this year in

conjunction with the normal Wednesday

competition for the first time with am and pm

shotgun starts and with the full course open.

Again, special scorecards were printed for the

occasion and new professional storyboards

were placed on tees and areas honouring our

WW1 members. Twenty-two Manly Golf Club

Ex-Service Section members, 43 other Manly

Golf Club members, 12 Ex-Service visitors and

3 current serving Navy members played in the

Ex-Service competition. The ADF Cup was

won by Navy. The 2nd

AIF Cup and the

Combined Services Cup were won by Ken

Herringe. The Campaign and Services Cup was

won by John Mortimer and the Ernie

McDowell Salver for the best scratch score was

won by Graham Kells. The service on the

Terrace included a lament by our Piper, Mark

Broadhead, for the first time before the Last

Post and Reveille were played by Navy bugler,

Able Seaman Andrew Hansch. The Dinner

with 106 present was a resounding success and

included a moving tribute on DVD to all those

who have paid the supreme sacrifice in

Afghanistan and a moving recital on compact

disc of In Flanders Fields and the Ode by Tim

Payne. The Apperly Room was adorned with

12

mannequins in Navy, Army, Air Force and

Nursing dress as well as framed pictures of our

wartime participation over the years. Everyone

received a copy of the Ex-Service Section

booklet "Australians in Conflict" and also a

"Celebration of a Century" newspaper produced

by RSL Life Care which includes a

comprehensive history of Australia's and the

World's major events over the last 100 years.

Our Guest Speaker, Colonel Andrew Condon

CSC (R'td), President of Sydney Legacy, gave a

magnificent address on the role and importance

of Legacy as well as some very interesting

stories of events in his varied and very

successful military career. Near the end of the

Dinner cheques from the Ex-Service Section,

the Club and the Bowlers were presented to

Legacy. The Committee wish to thank all the

Club staff for their support on the day and for

the Dinner. The meal presented for Dinner by

Chef, Markus was outstanding.

The AIF Matchplay Knockout Trophy was not

awarded again this year as there was no play

due to the course renovations.

The Annual General Meeting was held on

Wednesday 10 October.

It is with regret that we report the loss of

Geoffrey Cotton, Alan Doutreband, Boyd

Chandler, Bob Higham and Frank Ellis during

the reporting year.

Lest we forget!

Graham Kells

Men’s Open Draw Competition

Well, we have negotiated a year of change both

on course and off. The competition seems to

have survived a name change intended to

broadcast the opportunity to join in to the wider

membership but it also seems the tag ‘Seniors’

remains stuck.

It is interesting to observe how our group has

reacted to the evolving golf course. With the

opening of the first nine we had to learn

strategy to handle the hazards and our scores

suffered. Now we have a full course and

although we all have hit a ball into all the

bunkers and water, the lies have improved and

our scores have improved especially with the

higher markers. Do not get too confident just

yet as there are a few pink stakes to be removed

and preferred lies will go. We will see.

The full course has seen us return to Fridays

and Mondays. We can use extra tees on

Monday thus having a more concentrated finish

and less waiting for hit off.

Another great thing about the full course means

that we can accommodate a fair number of

visitors for our Xmas Gala Day. So here is

your opportunity to invite your visitor to show

our great course without paying a visitor’s fee

to participate in a competition with great prizes

and to enjoy a great luncheon with great

company. The date is 6th

December. There is a

shogun start at 8.00am so be there by 7.30am.

Bon Hawke Trophy Standing (as at 6 Nov)

1. B Wilding – 190 points

2. J Johnson – 169 points

3. J McCallum – 153

4. D Froggatt – 151 points

5. H Shore – 149 points

Update on the Perpetual trophy . . . as we all

will recall the Club celebrated the completion

of the final 7 holes of the course redevelopment

with opening week com- mencing with the

official opening on Friday, 13th

July. Each of

the competitions in the ensuing week celebrated

the opening with the presentation of winners'

trophies and also the inscription of the

individual winner’s name to a perpetual trophy

which would be competed for each year on the

anniversary of the opening.

The Men’s Open Draw Competition celebrated

the opening on Monday, 16th

. Unfortunately a

perpetual trophy was not prepared for the

competition at that time. Following discussions

we are pleased to advise that the club has

arranged for a similar trophy for the

competition. To the Board and the Match

Committee our thanks for this consideration

and our thanks to John Mater for taking our

request forward.

To all our staff, Front Office, Greens, Chef &

Bar, Functions and the Golf Shop boys, thank

13

you for making our time at the Club over

another year so enjoyable.

Ron Norris

Men Bowlers

At the beginning of September, John Anderson

felt that, due to a loss of mobility restricting

him from being able to bowl, he would sadly

have to resign from the position of President.

However, he is still regularly attending our

bowls days and luncheons and giving us the

benefit of his wisdom which is very much

appreciated.

We welcome new members, Roger Scurr, John

Nicholls, Ken Herringe and Neville Pulver to

our ranks and are delighted to witness the return

of Brian O’Donnell and Les Gilbert to the

green.

We are pleased that with the opening of the

new golf course and the rearrangement of

competitions we are back to bowling on

Thursdays with our monthly lunches returning

to the third Thursday of each month.

Sadly, in August it was decided by the Manly

Golf Club Committee that in order to present

the two blocks of land that were being offered

for sale in a more favourable light, it would be

necessary to demolish the Bowlers’ ‘Shed’

which had provided us with shelter and kitchen

and toilet facilities for many, many years.

We are delighted that there is a plan in place for

a modern ‘Pavilion’ to be erected adjacent to

the NE corner of the rink and we have high

hopes that this will be in place for the

beginning of the 2013 season in February. In

the meantime the ground staff are erecting

temporary cover for us each week and a golf

cart is made available for transport of

refreshments etc. Because of the loss of

entertaining facilities it was decided to cancel

our annual Bowlers v Golfers Day and Ladies

and Mens Mixed Social Day this year, but we

are planning to reinstate these events bigger and

better next year. The Geoffrey Cotton Cup, for

the leading Skip, was won jointly last year by

John Anderson and George Anderson. This

year’s competition is at an enthralling stage

with Paul Green just leading John Geismar and

Bill Williams closely in contention but anyone

could still make a late run and win.

I would like to thank Michael, Jason and the

team for presenting the green in excellent

condition every week, the girls in the office for

their cheerful and efficient assistance, and the

catering staff for providing us with some

delightful lunches. I would also like to give a

big thanks to John Geismar for organising the

matches and to all those bowlers who have

offered so much assistance to me in the short

time I have been President.

All Manly Golf Club members should be aware

that you are most welcome to join us any

Thursday at 12.45pm on the bowling green or

for lunch every third Thursday of each month.

All you need is a pair of soft shoes and a sense

of humour, we can help you with the rest.

Ken Reed

Snooker

The Snooker group has been rejuvenated by the

joining of some new younger players, who have

displayed skills not earlier shown at the table.

With the 2012 Handicap and Open

Championship tournaments now under way,

Andrew Bolton, Stephen Bowhill and Phil

Kells are showing our older and long- term

members of the group that the established

‘pecking’ order has been challenged. There are

two more rounds of the competitions to play

before the finals, which should be completed in

December.

It is pleasing to see more regular use of the

snooker room of late, and it is often necessary

to ‘book’ the table to ensure one’s preferred

time is available to play the competition

matches. The group will look at other

competitions when the present tournaments are

completed.

All members of our Club are again encouraged

to use the snooker room, and rediscover their

lost talents - or enjoy the experience of

learning new ones.

Wayne Batchelar

14

WOMEN’S GOLF

What an exciting year 2012 has been. After

nearly three years our course reopened in July

and we were able to play 18 holes for the first

time since October 2009. There was a week of

celebrations which included introducing a new

Perpetual Trophy. During this week our

Tuesday main competition day had 144 keen

golfers eager to try out the new 18 hole course.

Congratulations to Jean Kirk who won the

women's Perpetual Trophy. This trophy will be

played for annually to commemorate the

opening of our challenging new course. On

receiving the new ratings from Golf New South

Wales, it confirms that the women’s

championships course is most difficult.

We wish to thank all those members, who

represented Manly in the various Interclub

teams this year. It gave us pleasure to see new

keen golfers having a try combining with ‘old’

experienced players with success. We had some

excellent overall results and we congratulate the

Bronze II team who retained their title, the

shield to be hung proudly in our locker room.

Also a big thank you to the team convenors,

caddies and spotters who helped throughout the

season.

Manly was successful in winning the Pewter

Plate again, back-to-back wins, what a fantastic

result. This competition is run by GNSW and is

an 18 hole aggregate stableford event of a team

of two in the handicap range 33-40. This year

our team of Ali Gray & Janet Meagher played

at Richmond Golf Club.

Manly members continued to do well

representing in other GNSW events. The

Coronation Medal and Bronze Medallion both

have their event competing on two different

courses with two players from each club on

each course and aggregating all four net scores.

Our team for the Coronation Medal was

Gemma Amate, Anne Christie, Tarina Foote &

Jenny Van Munster, we were placed 7th in a

field of over 60 clubs. The Bronze Medallion

team of Lynne Amos, Philippa Barr, Beth

Haskins & Janet Meagher were placed 5th in a

field of over 60 clubs. These are excellent

results, well done everyone.

Club event winners this year included Dianne

Spears and Virginia Wozniak (GNSW Bowl

4BBB), Helen Barker and Jill Makaroff

(Canadian Foursomes - Club President’s

Trophy), Maureen Duesbury (Director of Golf

Trophy), Jodie Lord (Patron's Trophy), Ali

Gray and Janet Meagher (Fourball Cup) and

Pauline Webb (Grandmother Trophy).

Our colourful President’s and Captain’s Day, a

Team 4BBB v Par event was most successful

with the monies raised over lunch donated to

Breast Cancer Research. The President’s Team

won this year by a close margin with all players

on that team rewarded for their efforts.

This year Manly hosted the Manly Concord

Cup a 4BBB v Par event of 22 teams for the

first time in five years. The windy, hot day

added to the difficulty but our local knowledge

was crucial in helping us win the Cup for the

first time since 2007. Although the Concord

girls praised our new course they found it very

difficult, as was reflected in the scores, and are

keen to return.

Our new members group played on Monday

mornings have just completed the Mrs Clarke's

Cup of which Kathryn Riisfeldt was successful

in the match play final against Christine Shute.

This year 6 new members joined the group.

Guided by Jan Press we have seen marked

improvements during the year of handicaps

lowered and overall more confident golfers. Jan

has organised for the group clinics with Phil

Baird, rules sessions with Virginia Wozniak

motivational talks with Anne Hutchison, and

pace of play and etiquette discussions with

Barbara Maggs. Proposers of new members are

encouraged to take part in the Monday time slot

whenever possible.

Our Club Championships and Club Foursomes

are in progress this month. Good Luck to

everyone.

Next year we will return to a full calendar of

events. It will be a busy year, as in addition to

our club events we will be hosting in February,

as one of the peninsular golf courses the

“Barrenjoey Week of Golf” Division 2,

Division 3 and Foursomes. This event is

always successful with over 500 entries. Thank

15

you to our delegates Christine Kells, Melody

Clark & Jenny Van Munster. We are also

hosting the GNSW Senior Women's

Championship, GNSW Metropolitan 3BBB

Classic Playoff and GNSW Pewter Plate. This

will give MGC opportunities to showcase our

new course.

We would like to thank the many staff members

at MGC. Our General Manager, Ed Hynes,

administration staff, Denise, Sharyn & Michelle

for their support and guidance; to Catherine

Williams and her team who managed all our

functions so efficiently; to Markus Pekert who

has done an outstanding job of maintaining

such a high standard with all the meals; to Phil

Baird for his support to the women’s program

and we thank him for attending so many

meetings, also to his team Ben, Nathan, Richie

& Taylor for their assistance; to Michael

Bradbery, Jason Martin and staff who have

done an incredible job during the worst weather

Sydney has seen for many years to keep the

course playable in such difficult conditions; to

Tarina Foote the Golf Coordinator for her great

help in organising the many different fixtures

we had this year.

Finally, we would like to thank our committee,

although a small but proactive team they have

supported us and helped us during the year. We

would like to thank Melody as Bronze II

Convenor and the Links Journalist, Jan whose

dedication in managing our new members

group & enthusiastically taken on other tasks

allocated to her. Not forgetting our Veteran

Delegate Gail Fitzhardinge who continues to do

a wonderful job and to Denise Catling who has

looked after the open day book. I (Barbara)

would especially like to thank all those who

have supported me during my first year as

Captain including Board Members, Staff and

Members in general. It has been an interesting

and challenging year.

Feeling confident that the new committee of

2013 will easily step back into normal golf life,

I (Anne) am retiring from committee after six

years having seen us through many changes

particularly in the last three years, some of

which are Golf Australia’s introduction of

handicap changes, the amalgamation of men

and women state golfing bodies to GNSW and

more locally at Manly the new Golf

Coordinator and most important the disruptive

course renovation with multiple courses played

and all that it encompasses.

We hope 2013 will be a more relaxed

successful golfing year for all our women

members and the Club in general.

Anne Hutchison - Women's President

Barbara Maggs - Women's Captain

Veteran Women Golfers

Veteran women have again risen to the

challenges presented by the new layout and

have been consistently among the winners in all

divisions. It has been another year in which the

flexibility of the current handicap system -

under which a few shots could be gained to

compensate for the tough conditions – was

appreciated. This would not have occurred in

days gone by when the LGU system permitted

immediate reductions but to gain shots back

took years!

Audrey Galloway was the intrepid winner of

the Veteran and Senior Veteran Points score -

across all stroke rounds. Maureen Collins and

Lorelle O’Neill were runners-up.

Winners at Manly of the VWGA Challenge

Brooch were: Div 1 – Gae Larcombe; Div 2 –

Margaret Meakin; Div 3 – Sue Gaunt; Senior

Vets – Barbara Maggs. Margaret Meakin’s

score of nett 66 was, not surprisingly, the best

score in Division 2 across all clubs in NSW and

as a result she has been awarded the prestigious

VWGA Trophy for 2012.

The Kathleen Armstrong Cup for best 3 nett

scores was won by Gail Fitzhardinge from

those keen contestants Kay Anderson and

Maureen Collins.

Having survived the creative stages of the new

course it will be interesting for veterans to

savour its progress in the year ahead as it too

gains further maturity.

Gail Fitzhardinge

VWGA Delegate

16

Bridge

Time flies when you’re having fun and our

Bridge Club provides much pleasure for many

Manly Golf Club members and their guests.

Our regular bridge days on the 1st and 3

rd

Wednesday each month, and team days

whenever there is a 5th

Wednesday, are well

supported. My sincere thanks to our very

amiable and efficient Director, Linda

Abbenbroek, who does a wonderful job, and to

Jean Kirk, who directs if Linda is unavailable.

This year we have encouraged our players to

come on their own if they don’t have a partner.

It has worked very well and we shall continue

to do this in 2013.

Our twilight bridge evenings have been very

enjoyable and, I believe, are a wonderful

opportunity to further integrate our bridge

activities into the social life of the Club. Thanks

to John Badger who directs these evenings, and

to David Bardsley, who has directed when John

is unavailable.

We again participated in the Bridge for Brains

Research Challenge. We were one of more

than 100 Clubs that participated, and Manly

players contributed $800 to this worthy

charitable event.

We have had a very successful year, with our

Interclub Bridge events. Team no. 2 had a

wonderful victory in its competition with

Roseville, Killara and Chatswood Golf Clubs.

The team’s final score of 10.5 pts put it 3 pts

ahead of 2nd

placegetter Killara, then came

Roseville and Chatswood. Congratulations

ladies and thank you all for your participation.

Our Invitation days with Pymble (12 pairs each

Club) and Elanora (6 pairs each Club) have

both seen wins for the Manly ladies, and a draw

with Killara (12 pairs each Club).

The final round of the No.1 Team’s

competition, saw a win for Monash but an

overall win for Manly for the PLMM trophy for

2012. Well done ladies and thank you to

everyone who has played in the Interclub

events, and sincere thanks to Margaret Meakin

and Sue Cameron for organising all the

Interclub Teams and for their inspirational

selections.

John Roberts again gave us some excellent

lessons and will do so again in 2013. I would

encourage the ladies who are keen to play in the

Interclub events to attend these lessons, because

they are designed to improve defence and

declarer play.

My sincere thanks go to the office, catering and

bar staff who are always so courteous, and look

after us so well.

Last, but certainly not least, thank you to the

“team” who make everything flow smoothly,

Sue Addison, our Treasurer, and her helper

when necessary, Sue Salvage; Lindy Barnett,

our Masterpoints Secretary; Jean Nicholls and

all her willing helpers who set up the bridge

tables, and Sue Cameron and Margaret Meakin

for the Interclub teams selections.

I have had a very enjoyable year, thank you.

Diana Stewart

Lady Bowlers

The year 2012 has been a disruptive one for our

members as we have tried to carry on bowling

in difficult circumstances. The Monday

morning sessions have continued this year and

our new players, with the encouragement of the

older players, have enjoyed learning the game

and our more experienced bowlers have been

very patient and generous with their time with

the newer bowlers. We are seeing this

encouragement paying off as the year comes to

a close. We welcomed back Toni Lynch who

returned after a total hip replacement.

We enjoyed our matches against the North

Shore clubs of Pymble, Killara and Elanora and

the highlight of our year was the handsome win

we had against Pymble again in May, when we

won 3 and 2. The return match against Killara

was cancelled due to rain. Our final match due

on October 11 when we return to Elanora has

been postponed, and rescheduled for November

due to rain. Our thanks go to the MGC

members who play at other clubs and come to

assist us in these Inter Club matches, as we

17

have had great difficulty making up teams from

our regular players again due to illness and

injury.

Stalwart member Lorraine Cosgrove has had a

difficult foot operation in the middle of the year

and although recovery has been slow, she is

now progressing well. Mona Allsop fractured

her hip in July has recovered well and is now

begun bowling again.

Our Manly Lady Bowlers are very busy people,

have many interests, and share their time as

members of our Pennant golf and Bridge teams,

so often their commitments clash with the

bowling calendar.

My thanks go to Shirley Wickenden and John

Anderson who helped to relocate the bowls and

the contents of the Bowling Shed from this

facility, to Shirley’s cellar, at very short notice,

when the Shed was demolished while I was

overseas. The sudden removal of the Bowlers

Shed created great difficulties for the lady

bowlers and greatly disrupted our hosting

arrangements when Elanora came to play at

Manly in August.

Our facilities at present are far from

satisfactory, without toilet, water, electricity or

adequate shelter from sun and rain. Unless a

replacement facility is built in the near future

we are most reluctant to invite bowlers from

our North Shore clubs to play inter club

competition during 2013.

Our Ground and Pro Shop staff have been

excellent in helping us through this period by

providing the use of a cart to transport bowls

and to allow our members access to the

Halfway house toilets, which is essential during

bowling days.

We hope that the construction of the new

pavilion will be set as an urgent priority, given

that we would like to set dates for 2013

matches.

On a brighter note we participated in a

milestone in our club with the 90th

Birthday of

Mona Allsop, which was celebrated with a fun

day of bowls followed by a great cake and

champagne.

With the completion of the renovations of the

Council Kindergarten, we were left with fewer

parking spaces and more restrictive times. To

accommodate this we have adjusted our

bowling times and we now commence bowling

at 9.30am and this is working well. We

anticipate there will be more adjustments to be

made to playing times in 2013 with the

commencement of construction on the

adjoining blocks of land and the new Bowls

Pavilion

Betty Alexander

18

TREASURER’S REPORT

From a financial perspective the 2011/12

financial year for MGC was a lot more difficult

than anticipated. The main problem was the 3

month delay in the opening of the full course

caused by the adverse weather. That upset the

twelve month budget and cash-flow. With the

course now complete, we should be able to

return to normal trading and revenue streams

and set about the task of paying off the debt.

The course construction is now complete, save

some sub-surface drainage. We have achieved

what we set out to do and created a new golf

course that is attracting new and younger

members. The cost has been more than we

would have liked, but the debt created was

necessary to ensure the future of MGC. It was

most important that we created an exclusive

product that attracted these new, young

members. This has in turn ensured the survival

of MGC.

The accompanying financial statements show a

net deficit of $197,286 for the year ended 30th

September 2012. This result is better than

budget (by $15,195). After adding back

depreciation and capital write-offs, this deficit

becomes a cash flow surplus for the year of

$634,713 before interest. Funds received from

the construction levy and entrance fees have

helped balance the budget.

The interest and bank fees paid on loans this

year was $583,055. This is the largest amount

of interest we will pay in any year. The debt is

being reduced over the next 4 months by

revenue received from the sale of the 2 blocks

of land in Suwarrow Street ($1,739,500) and

the 3 properties being sold in Balgowlah Road.

The debt will be substantially reduced to

around $5.1 million. I feel the result for the

year is satisfactory.

The important thing now is to plan for the

future and the repayment of the debt. We have

in place an arrangement with the bank to pay

off the debt over the next 18 years. The long

term budgets and cash-flows we have prepared

indicate this task is achievable. With

satisfactory trading and economic conditions

the debt could be paid off in ten years.

A comprehensive summary of the course

redevelopment and associated costs is attached

to this report (and available on the website). It

is interesting reading and I recommend it to all

members. It shows the total cost of construction

for the new course was $15,738,057. We were

lucky enough to start this project pre-GFC and

receive the funds from the 50 year lease to the

child care centre and then the post GFC grant

from the government. Without these 2

payments the project would never have begun

or been able to be finished. The completion of

the project has secured the future of MGC.

I turn now to the next 12 months. The club is

slowly returning to normal trading. It has taken

longer than anticipated as the bar and catering

returns have only returned to profit in the last 2

months. We make good returns on corporate

golf and here the bookings have been very

encouraging. New members are providing

excellent income – in 2012 we gained 62 new

seven day members and 83 new members

overall. Even so, our total membership is still

below the peak in 2003 (1543). However, the

enquiry for membership is still strong and at

present we have 17 new approvals awaiting

membership.

In 2012/13 we expect a net profit of $146,772.

This will give us a net cash surplus of

$952,314. This surplus includes the levies

($536,214) and entrance fees ($395,444). The

estimated interest for the year will be $453,355.

The debt will be reduced to $4,950,000.

The 2013/14 year will be the last year of the

construction levy. The interest paid on loans in

that year will be $260,180. We expect at this

time normal trading will produce a cash surplus

sufficient to pay all overheads and reduce the

debt by a further $150,000.

My five years as Treasurer now comes to an

end. It has been an interesting journey with

many ups and downs with numerous road-

bumps to negotiate. Fortunately, I have had

capable and competent people on the finance

committee through these past 5 interesting

years. In the last year the Finance Committee,

comprising Ken Munro, Bob Pfafflin, David

Cleary and John O’Connor have done a great

19

job and I sincerely thank them. The General

Manager, Ed Hynes has also been invaluable

with his input and financial expertise. Finally,

my sincere thanks go to the Finance Manager,

Lisa Wilson, who is excellent in her role,

particularly with her skill and knowledge of

financial costing, analysis and cash-flow

preparation. Richard Holm

20

MANLY GOLF CLUB LIMITED

ABN 18 000 007 465

DIRECTORS’ REPORT

The Directors of Manly Golf Club Limited submit herewith the Financial Report of the company for the year ended 30 September

2012 and report as follows:-

1. Board of Directors

The names and particulars of the Directors of the company in office at the date of this report are:-

Name Experience

as a Director Special Responsibilities

Kenneth John William Munro

Retired Company Director

Bachelor of Commerce (Econ)

Post Graduate Diploma of

Business, Uni of Toronto

12 President, Chairman of Course Redevelopment Committee and ex-

officio on all Committees

David John Cleary

Senior Bank Executive

Post Graduate Diploma in

Banking Management

5 Vice President, Finance Committee, Membership Committee,

Chairman Property Redevelopment Committee

John Mater

Retired 5

Captain, Chairman of Match Committee, Greens Committee, Course

Redevelopment Committee

*Philip John Kells

Company Director 2 Vice Captain, Match Committee, Membership Committee

Richard Roy Holm

Accountant/Financial Planner

Bachelor of Arts (Economics).

7 Treasurer, Chairman of Finance Committee, Match Committee

Glenn Michael Coyne

Solicitor

Dip. Law (Solicitors Admission

Board) Supreme Court NSW

5 Chairman Membership Committee, Match Committee, Greens

Committee

Ron Norris

Company Director

Partner in Consulting Structural

& Civil Engineering Practice

2 Chairman Greens Committee, Course Redevelopment Committee

John O’Connor

Company Director

Retired Stockbroker

1 Greens Committee, Finance Committee

Robert Oswald Pfafflin

Company Director

Chartered Accountant &

Chartered Secretary

9 Finance Committee, Membership Committee, Course Redevelopment

Committee, Property Redevelopment Committee

*Retired from the Board on 5th

October 2012

21

MANLY GOLF CLUB LIMITED

ABN 18 000 007 465

DIRECTORS’ REPORT

2. Board Meetings The following is a schedule of meetings attended by each of the Directors of the company during the financial year:

No. of Board

Meetings

Eligible to

Attend

No. of Board

Meetings

Attended

No. of

Committee

Meetings

Eligible to

Attend

No. of

Committee

Meetings

Attended

K J W Munro 11 11 25 22

D J Cleary 11 10 11 10

J Mater 11 10 15 13

P Kells 10 9 10 9

R R Holm 11 10 18 16

G M Coyne 11 11 8 5

R Norris 11 11 8 8

J P O’Connor 10 10 8 8

R O Pfafflin 11 9 15 13

3. Principal Activities

The principal activity of the entity during the period was the provision of golfing and social facilities for members. There

was no change in the principal activity during the year.

The entities short-term objectives are to:

reduce debt;

return the Club to trading profits following the disruption to normal trading during the Club’s redevelopment of its

golf course.

The entities long-term objectives are:

to promote and conduct the game of golf and such other activities as the membership may require from time to

time;

to provide excellent facilities to enable members to enjoy both the sport of golf and the social conviviality

associated with membership of a private golf club.

To achieve these objectives the entity:

employs suitable management, consultants and professionals

committed to achieving its objectives.

maintains rigorous financial controls over the activities of the entity and enforces a high level of corporate

governance.

constantly monitors trends in the golfing industry to ensure up to date practices.

22

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up,

the constitution states each member is required to contribute a maximum of $2.00 each towards meeting any outstanding

obligations of the entity. At 30 September 2011, the collective amount members would contribute was $2,776 (2011:

$2,828).

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS and in accordance with its resolution:

………………………………………………………

K J W Munro – President

……………………………………………………….

R R Holm – Hon. Treasurer

Dated at Manly this 12th day of November, 2012

23

AUDITOR’S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

To the Directors of MANLY GOLF CLUB LIMITED

I declare that, to the best of my knowledge and belief, during the year ended 30 September 2012 there has been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in

relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

CABEL Partners

Chartered Accountants

Phillip Browne

Registered Company Auditor

phillip@cabel.com.au

North Sydney

Dated 12th day of November 2012

24

INDEPENDENT AUDITOR’S REPORT

Report on the Financial Report

We have audited the accompanying financial report of Manly Golf Club Limited (the company), which comprises

the statement of financial position as at 30 September 2012 and the statement of comprehensive income, statement of

changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting

policies and other explanatory notes and the directors’ declaration.

The Responsibility of the Directors for the Financial Statements

The Directors of the company are responsible for the preparation of a financial report that gives a true and fair

view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal

control as the directors determine is necessary to enable the preparation of the financial report that is free from

material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in

accordance with Australian Auditing Standards. Those Auditing Standards require that we comply with relevant

ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance

whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the

financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risk

of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments,

the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true

and fair view 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 the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.

25

INDEPENDENT AUDIT REPORT

Auditor’s Opinion

In our opinion, the financial report of Manly Golf Club Limited is in accordance with Corporations Act 2001,

including:

(a) giving a true and fair view of the company’s financial position as at 30 September 2012 and of their

performance for the year ended on that date; and

(b) complying with Australian Accounting Standards (including the Australian Accounting

Interpretations).

CABEL Partners

Chartered Accountants

Phillip Browne

Registered Company Auditor

Cabel Partners 1 James Place North Sydney 2060

Dated 12th day of November 2012

27

MANLY GOLF CLUB LIMITED

DIRECTORS’ DECLARATION

The Directors declare that:

1. The financial statements comprising the Statement of Comprehensive Income, Statement of Financial Position,

Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements are in their

opinion in accordance with the Corporations Act 2001;

(a) comply with Accounting Standards and the Corporations Regulations 2001; and

(b) give a true and fair view of the Club’s financial position as at 30 September 2012 and of its performance

for the year ended on that date.

2. In the Directors’ opinion, there are reasonable grounds to believe that the Club will be able to pay its debts as and

when they become due and payable.

This Declaration is made in accordance with a resolution of the Directors.

………………………………………………………

K J W Munro – President

………………………………………………………

R R Holm – Hon. Treasurer

Dated at Manly this 12th day of November 2012

28

MANLY GOLF CLUB LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 30 SEPTEMBER 2012

NOTE 2012 2011

$ $

Revenues 2 5,731,075 5,423,315

Other income 2 410,339 578,184

Cost of sales 3 (788,796) (756,276)

Employee benefits expense (3,123,062) (3,029,623)

Depreciation and amortisation expenses 3 (451,159) (498,908)

Finance costs 3 (583,055) (491,581)

Repairs and maintenance expense (74,571) (140,304)

Audit expense 3 (23,820) (21,745)

Other expenses from ordinary activities (1,294,237) (1,305,574)

Sub total (197,286) (242,512)

Grant Received From Australian Govt For Stormwater Harvesting 1,262,900 828,800

Net (loss) on write off of course development costs 3 (4,414,638) (3,581,544)

Loss for the year (3,349,024) (2,995,256)

Other comprehensive income:

Net Gain on Revaluation of Land 1,278,733 -

Total other Comprehensive Income for the year 1,278,733 -

Comprehensive income attributable to members (2,070,291) (2,995,256)

The accompanying notes form part of this financial report.

29

MANLY GOLF CLUB LIMITED

STATEMENT OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2012

ASSETS NOTE 2012 2011

CURRENT ASSETS $ $

Cash and cash equivalents 4 538,842 735,063

Trade receivables & prepayments 5 2,473,889 2,386,351

Inventories 6 151,932 160,006

Property, Plant & Equipment Held for Sale 7 4,345,241 -

TOTAL CURRENT ASSETS 7,509,904 3,281,420

NON-CURRENT ASSETS

Property, Plant & Equipment 7 11,201,858 14,704,801

Investment Property 8 3,140,000 2,930,000

TOTAL NON-CURRENT ASSETS 14,341,858 17,634,801

TOTAL ASSETS 21,851,762 20,916,221

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 4,979,011 5,101,330

Short-term borrowings 10 2,305,389 900,000

Short-term provisions 11 225,247 206,010

TOTAL CURRENT LIABILITIES 7,509,647 6,207,340

NON-CURRENT LIABILITIES

Payables 9 3,493,333 3,573,335

Long-term borrowings 10 6,613,255 4,851,000

Long-term provisions 11 175,869 154,597

TOTAL NON-CURRENT LIABILITIES 10,282,457 8,578,932

TOTAL LIABILITIES 17,792,104 14,786,272

NET ASSETS 4,059,658 6,129,949

MEMBERS’ FUNDS

Reserves 12,870,040 11,591,307

Accumulated Losses (8,810,382) (5,461,358)

TOTAL MEMBERS’ FUNDS 4,059,658 6,129,949

The accompanying notes form part of this financial report.

30

MANLY GOLF CLUB LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 SEPTEMBER 2012

ASSET REVALUATION RESERVE 2012 2011

$ $

Balance at the beginning of the year 11,591,307 11,591,307

Valuations for the year (Decrease)/Increase in Freehold Land

1,278,733 -

Disposals for the year - -

Balance at end of the year 12,870,040 11,591,307

RETAINED EARNINGS

Balance at the beginning of the year (5,461,358) (2,466,102)

Loss attributable to members of the entity (3,349,024) (2,995,256)

Balance at end of the year (8,810,382) (5,461,358)

The accompanying notes form part of this financial report.

31

MANLY GOLF CLUB LIMITED

CASH FLOW STATEMENT

FOR THE YEAR ENDED 30 SEPTEMBER 2012

NOTE 2012 2011

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 7,438,212 6,160,900

Payments to Suppliers & Employees (6,963,998) (5,401,538)

GST received/(paid) 121,437 174,259

Interest Paid (583,055) (491,581)

NET CASH FLOW FROM OPERATING ACTIVITIES 19 12,596 442,040

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for Property, Plant & Equipment (3,376,461) (3,708,236)

Proceeds from Sale of Plant & Equipment - -

NET CASH OUTFLOW FROM INVESTING ACTIVITIES (3,376,461) (3,708,236)

CASH FLOW FROM FINANCING ACTIVITIES

Proceeds from borrowings 3,167,644 3,151,000

NET CASH FLOWS FROM FINANCING ACTIVITIES 3,167,644 3,151,000

NET INCREASE/(DECREASE) IN CASH HELD (196,221) (115,196)

CASH AT BEGINNING OF THE FINANCIAL YEAR 735,063 850,259

CASH AT END OF THE FINANCIAL YEAR 19 538,842 735,063

The accompanying notes form part of this financial report.

32

MANLY GOLF CLUB LIMITED

NOTES TO FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2012

The financial statements are for Manly Golf Club Limited as an individual entity, incorporated and domiciled in

Australia. Manly Golf Club Limited is a company limited by guarantee.

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are general purpose financial statements that have been prepared in accordance with

Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act

2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in

financial statements containing relevant and reliable information about transactions, events and conditions.

Material accounting policies adopted in the preparation of these financial statements are presented below and

have been consistently applied unless otherwise stated. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statemnts

The financial statements have been prepared on an accruals basis and are based on historical costs, modified,

where applicable, by the measurement at fair value of selected non-current assets, financial assets and

financial liabilities.

Accounting Policies

(a) Revenue

Revenue for annual golf subscriptions is recognised in the year to which it relates while revenue from sale of

goods is recognised upon the delivery of goods to customers.

Interest Revenue

Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.

Rental Income

Rental Income is recognised as it accrues. Where rental receipts are received in advance of the lease term, the

rental income is recognised over the term of the rental agreement.

Other Income

Income from other sources is recognised when the fee in respect of other products or services provided is

receivable.

All revenue is stated net of the amount of goods and services tax (GST).

(b) Inventories

Inventories are measured at the lower of cost and current replacement cost.

(c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, accumulated

depreciation and impairment losses.

Property

Freehold land is shown at its fair value, based on periodic valuations by independent, qualified valuers.

33

MANLY GOLF CLUB LIMITED

If the carrying amount of a class of assets is increased as a result of a revaluation, the net revaluation increase

shall be recognised in other comprehensive income and accumulated in equity under the heading of

revaluation surplus. However, the net revaluation increase shall be recognised on profit and loss to the extent

that it reverses a net revaluation decrease in the same class of assets previously recognised profit or loss.

If the carrying amount of a class of assets is decreased as a result of a revaluation, the net revaluation decrease

shall be recognised in profit and loss. However, the net revaluation decrease shall be recognised in other

comprehensive income to the extent of any credit balance existing in any revaluation surplus in respect of that

same class of asset. The net revaluation decrease recognised in other comprehensive income reduces the

amount accumulated in equity under the heading of revaluation surplus.

Revaluation increase and decreases relating to individual assets within a class of property, plant and equipment

shall be offset against one another within that class but shall not be offset in respect of assets in different

classes.

Buildings, Plant and Equipment The carrying amount of buildings, plant and equipment is reviewed annually by directors to ensure it is not in

excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the

expected net cash flows that will be received from the assets employment and subsequent disposal. The

expected net cash flows have been discounted to their present values in determining recoverable amounts.

Development Costs

Development costs occur where the asset is in the process of being designed, approved and constructed.

Depreciation

The depreciable amount of all fixed assets including capitalised lease assets is depreciated on the straight-line

basis over their useful lives to the economic entity commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Asset Revaluation Reserve

The asset revaluation reserve is used to record increments and decrements on the revaluation of freehold land.

The balance standing to the credit of the reserve is not distributable.

Class of Fixed Asset Depreciation Rate

Buildings and Improvements 4%

Plant, Equipment, Furniture & Fittings 5 – 30%

Course Watering System 5%

The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Asset classes carrying amount is written down immediately to its recoverable amount if the asset’s carrying

amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or

losses are included in the statement of comprehensive income.

(d) Investment Property

Investment property, comprising of freehold land, is held to generate long-term rental yields. The tenant lease is

on an arm’s length basis. Investment property is carried at fair value, determined by the Valuer General.

Changes to fair value arising on revaluation are recognised as stated in (c) above.

(e) Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are

charged as expenses in the period in which they are incurred.

34

MANLY GOLF CLUB LIMITED

(f) Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual

provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself

to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially

measured at fair value plus transaction costs except where the instrument is classified at fair value through the

profit or loss in which case transaction costs are expensed to profit or loss immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest

rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability

settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to

determine fair value. In other circumstances, valuation techniques are adopted.

(g) Impairment of assets

At each reporting date, the entity reviews the carrying values of its tangible assets to determine whether there is

any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the

asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s

carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the

statement of comprehensive income.

Where the future economic benefits of the assets are not primarily dependent upon on the assets ability to

generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future

economic benefits, value in use is depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an asset class, the entity estimates the

recoverable amount of the cash-generating unit to which the class of assets belong.

(h) Employee Benefits

Provision is made for the entity’s liability for employee benefits arising from services rendered by employees to

Balance Sheet date. Employee benefits expected to be settled within one year together with benefits arising

from wages, salaries and annual leave which may be settled after one year, have been measured at the amounts

expected to be paid when the liability is settled plus related on costs. Other employee benefits payable later than

one year have been measured at the net present value.

Contributions are made by the entity to an employee superannuation fund and are charged as expenses when

incurred.

(i) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks and other short-term highly

liquid investments with original maturities of three months or less.

(j) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST

incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part

of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance

Sheet are shown inclusive of GST.

Cash flows are presented in the statement of cash flows inclusive of GST where applicable.

(k) Income Tax

No provision for income tax has been raised as the entity is exempt from income tax under Section 50-45 of the

Income Tax Assessment Act 1997.

35

MANLY GOLF CLUB LIMITED

(l) Provisions

Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for

which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of

the reporting period.

(m) Comparative Figures

Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in

presentation for the current financial year.

(n) Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical

knowledge and best available current information. Estimates assume a reasonable expectation of future events

and are based on current trends and economic data, obtained both externally and within the entity.

Key estimates – Impairment

The entity assesses impairment at each reporting date by evaluating conditions specific to the entity that may

lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is

determined. Fair value less costs to sell or current replacement cost calculations performed in assessing

recoverable amounts incorporate a number of key estimates.

(o) New Accounting Standards for Application in Future Periods

The AASB has issued new and amended accounting standards and interpretations that have mandatory

application dates for future reporting periods. The company has decided against early adoption of these

standards.

36

MANLY GOLF CLUB LIMITED

2012 2011

$ $

2. REVENUE AND OTHER INCOME

(a) Revenue

Subscriptions 2,895,333 2,753,876

Sale of goods 2,065,000 2,001,450

Entrance fees 567,779 567,869

Visitors and Corporate Golf Fees 175,727 86,026

Other revenue 27,236 14,094

Total revenue 5,731,075 5,423,315

(b) Other income

Property Rental 130,051 134,498

Construction Levy 260,425 407,421

Profit on sale of non-current assets 11,909 -

Interest 7,954 36,265

Total Other Income 410,339 578,184

TOTAL REVENUE AND OTHER INCOME 6,141,414 6,001,499

3. PROFIT FOR THE YEAR

Profit from operations has been determined after:

a. Expenses

Cost of Sales

Bar 262,393 244,471

Catering 341,130 336,317

Golf Shop 185,273 175,488

788,796 756,276

Depreciation and amortisation of non-current assets

Depreciation and amortisation 451,159 498,908

Finance Costs

Commonwealth Bank 476,617 491,581

Pastlink Properties Ltd 106,438 -

583,055 491,581

Auditor Remuneration

Audit Services 22,145 20,120

Other services - Grant Acquittal 1,675 1,625

23,820 21,745

b. Significant Revenues and Expenses

Net gain/(loss) on Disposal of PPE, Land and Buildings

Proceeds on disposal 11,909 -

Disposals at WDV - (43,002)

Net gain on disposal as at 30 September 2012 11,909 (43,002)

Net (loss) on write off of course development costs (4,414,638) (3,581,544)

4. CASH AND CASH EQUIVALENTS

CURRENT

Cash on Hand 6,950 7,950

Cash at Bank 531,892 727,113

538,842 735,063

37

MANLY GOLF CLUB LIMITED

2012 2011

TRADE, PREPAYMENTS AND OTHER RECEIVABLES $ $

5. CURRENT

Subscriptions Owing 2,229,408 2,144,875

Sundry Debtors 147,401 127,574

Prepayments 97,080 113,902

2,473,889 2,386,351

The company does not have any material risk exposure to any single receivable or group of

receivables.

6. INVENTORIES CURRENT AT COST Bar 49,056 65,536

Golf Shop 102,876 94,470

151,932 160,006

7. PROPERTY, PLANT AND EQUIPMENT

Current Property, Plant and Equipment Held for Sale

Cottages expected to be sold 2012/2013 2,554,805

Land sold under contract to be settled 2012 1,790,436

Total Current Property, Plant and Equipment 4,345,241 -

Non Current Property, Plant and Equipment

Freehold Land and Development Costs

Golf course at valuation by Preston Rowe Patterson 30/9/12 7,265,000 3,985,831

- Development costs at cost net of Grant 3,151,738 2,752,744

- Write-off to Profit and Loss (3,151,738) (2,752,744)

- Housing development at cost - 17,021

Golf course at valuation 30/9/12 (2011 1/7/2008) 7,265,000 4,002,852

Other Land at valuation 1/7/2008 - 3,856,400

7,265,000 7,859,252

Buildings and Improvements - Buildings at valuation 1/1/1983 1,819,963 1,819,963

- Cottages at valuation 3/9/2009 - 2,638,763

- Additions at cost 711,668 706,341

- Improvements at cost 2,793,428 2,793,428

5,325,059 7,958,495

Less Accumulated Depreciation (1,984,585) (1,832,366)

3,340,474 6,126,129

Plant, Equipment, Furniture & Fittings

Plant, Equipment, Furniture & Fittings at cost 3,653,430 3,669,064

Less Accumulated Depreciation (3,160,157) (2,949,644)

Net Plant, Equipment, Furniture & Fittings at cost 493,273 719,420

Plant, Equipment, Furniture & Fittings leased 112,998 -

Less Accumulated Amortisation (9,887) -

Net Plant, Equipment, Furniture & Fittings leased 103,111 -

Total Non Current Property, Plant and Equipment 11,201,858 14,704,801

38

MANLY GOLF CLUB LIMITED

Asset Revaluations

The freehold land was independently valued on 30/9/2012 by Preston Rowe Patterson and reflected the

physical conditions and the way in which the land could be used. The cottages at 28 and 32 Balgowlah Rd

were valued at 3/9/2009 by LJ Hooker Balgowlah and reflected the current market conditions and the location

of the properties. These properties will be sold during 2012/3. The cottage at 30 Balgowlah Rd has been sold

and settlement of this contract will occur during December 2012. Freehold land at 15 and 17 Suwarrow Sts

have been sold and contracts have been exchanged. Settlement of these contracts will occur during December

2012.

At 30 September 2012 the directors reviewed the key assumptions made by the valuers at 30/9/2012 and

3/9/2009. They have concluded that these assumptions remain materially unchanged, and are satisfied that the

carrying value does not exceed the recoverable amount of land and buildings at 30 September 2012.

Core and Non Core Property

Core Property includes the Clubhouse, Golf Course and Bowling Green at 38-40 Balgowlah Rd Fairlight and

Lot 10 Kenneth Rd Balgowlah.

Non Core Property includes 28, 30 and 32-34 Balgowlah Rd Fairlight, 15 and 17 Suwarrow Sts and the

investment property at 87-95 Balgowlah Rd Fairlight.

MOVEMENTS

Movements in the carrying amounts of each class of property, plant and equipment are set out overleaf:

39

MANLY GOLF CLUB LIMITED

2012 Freehold

Land

Buildings and

Improvements

Plant, Equipment,

Furniture & Fittings

Leased

Plant and

Equipment

Total Non

Current

Current Land &

Buildings Held

for Sale

Total Current &

Non-Current

Carrying amount

at beginning of

year

7,859,252 6,126,129 719,420 - 14,704,801 - 14,704,801

Reclassify (1,690,514) (2,638,763) - - (4,329,277) 4,329,277 -

Revalue 1,052,769 - - - 1,052,769 15,964 1,068,733

Write off (3,151,738) - - - (3,151,738) - (3,151,738)

Disposals - - - - - - -

Additions 3,195,231 5,327 62,726 112,998 3,376,282 - 3,376,282

Depreciation - (152,219) (288,873) (9,887) (450,979) - (450,979)

Carrying amount

at end of year 7,265,000 3,340,474 493,273 103,111 11,201,858 4,345,241 15,547,099

2011

Freehold

Land

Buildings and

Improvements

Plant, Equipment,

Furniture & Fittings

Course Watering

System

Total

Current Land &

Buildings Held

for Sale

Total Current &

Non-Current

Carrying amount at

beginning of year 7,842,231 5,367,834 991,351 46,800 14,248,216 - 14,248,216

Write off (2,752,744) - - - (2,752,744) - ((2,752,744)

Disposals - - (8,616) (34,386) (43,002) - (43,002)

Additions 2,769,765 910,089 71,385 - 3,751,239 - 3,751,239

Depreciation - (151,794) (334,700) (12,414) (498,908) - (498,908)

Carrying amount

at end of year 7,859,252 6,126,129 719,420 - 14,704,801 - 14,704,801

40

MANLY GOLF CLUB LIMITED

2012 2011

$ $

8. INVESTMENT PROPERTY

Balance at the beginning of year 2,930,000 2,930,000

Revalue VG 1/7/2011 210,000 -

Balance at end of year 3,140,000 2,930,000

The Investment Property which comprises of freehold land has been leased for a period of 50 years

commencing on 4 June 2007. The lease agreement requires 4, six monthly payments of $1m each

commencing on 4 June 2007 and are not refundable under any circumstances.

9. TRADE & OTHER PAYABLES

CURRENT

Trade Creditors 171,708 265,358

Sundry Creditors and Accruals 415,496 460,040

Rent in Advance 80,000 80,000

Goods and Services Tax 352,057 348,828

Subscriptions in Advance 3,959,750 3,947,104

4,979,011 5,101,330

NON-CURRENT

Rent in Advance 3,493,333 3,573,335

10. BORROWINGS

CURRENT

Commonwealth Bank Business Loans 380,587 -

Commonwealth Bank Finance Leases 18,364 -

Pastlink Properties Holdings Pty Ltd 1,906,438 900,000

17 2,305,389 900,000

NON-CURRENT

Commonwealth Bank Business Loans 5,929,413 4,851,000

Commonwealth Bank Business Property Loan 600,000 -

Commonwealth Bank Finance Leases 83,842 -

17 6,613,255 4,851,000

The company’s loan with Pastlink Properties Holdings Pty Ltd ACN 104 394 336 is secured by an

unregistered mortgage over 28 and 32-34 Balgowlah Rd Fairlight.

The company’s loan from the Commonwealth Bank is available as a line of credit. The bank business loan is

secured by a registered first mortgage over all property (excluding 28 and 32-34 Balgowlah Rd, Fairlight

and 15-17 Suwarrow St, Balgowlah) and an equitable charge over all the company assets. The bank business

property loan is secured by a registered first mortgage over 30 Balgowlah Rd, Fairlight.

11. PROVISIONS

Opening Balance at 1 October 2011 360,607 325,950

Additional provisions raised during year 231,005 233,640

Amounts Used (190,496) (198,983)

Balance at 30 September 2012 401,116 360,607

Analysis of total provisions

Current 225,247 206,010

Non-Current 175,869 154,597

401,116 360,607

Provision for Long-Term Employee Benefits

A provision has been recognised for employee entitlements relating to long- service leave. The measurement

and Recognition criteria relating to employee benefits have been included in note 1 to this report.

41

MANLY GOLF CLUB LIMITED

12. DIRECTORS DISCLOSURES

A Directors The names of each person holding the position of Director of Manly Golf Club Limited during the

financial year are:

K J W Munro, R O Pfafflin,, R R Holm, D J Cleary, J Mater, G M Coyne, P J Kells,

R W Norris and J P O’Connor.

B Remuneration of Directors

No Director received any remuneration from the Company during the year, other than in line with

expense approval in the resolution at the 2011 Annual General Meeting.

13. KEY MANAGEMENT PERSONNEL COMPENSATION

Post

Short Term employment

Benefits Benefits Total

$ $ $

2012

Total compensation (6 personnel) 767,893 - 767,893

2011

Total compensation (6 personnel) 820,664 - 820,664

14. RELATED PARTY TRANSACTIONS

During the year the company had a loan agreement with Pastlink Properties Holdings Pty Ltd for $1,906,438. RN

Smith is a director of Pastlink Properties Holdings Pty Ltd. RN Smith is a former director of Manly Golf Club

Limited.

The purpose of this short term loan is to fund the course redevelopment pending the sales of assets. The loan is

secured by a non registered mortgage over 28 and 32-34 Balgowlah Rd, Fairlight. The loan is repayable on the

sale of 28 and 32-34 Balgowlah Rd, Fairlight.

15. COMPANY LIMITED BY GUARANTEE

The company is a company limited by guarantee under the Corporations Act. If the company is wound up, the

Memorandum of Association states that each member, or within one year thereafter, is required to contribute a

maximum of $2 each towards meeting any outstanding obligations of the company.

16. MEMBERS’ SUBSCRIPTIONS RECEIVED IN ADVANCE

Amounts received from members in respect of subscriptions for 2012/2013 are included in the statement of

financial position under payables.

17. FINANCIAL INSTRUMENTS

Financial Risk Management

The entity’s financial instruments consist mainly of deposits with banks, short-term investments, accounts

receivable and payable.

The company does not have any derivative instruments at 30 September 2012.

Financial Risks

The main risks the entity is exposed to through its financial instruments are interest rate risk, liquidity risk and

credit risk.

(a) Credit risk

The entity does not have any material credit risk exposure to any single receivable or group of receivables

under financial instruments entered into by the entity.

42

MANLY GOLF CLUB LIMITED

(b) Liquidity risk

The entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised

borrowing facilities are maintained

Financial liability and financial asset maturity analysis

Financial liabilities

due for payment Within 1 year 1-5 Years Over 5 years Total

2012 2012 2012

$ $ $ $

Pastlink Properties Loan* 1,906,438 - - 1,906,438

CBA Business Bill Facility 380,587 - 5,929,413 6,310,000

CBA Business Loan - 600,000 - 600,000

CBA Finance Leases 18,364 83,842 - 102,206

Trade and other Payables 4,977,681 - - 4,977,681

Financial assets

cash flow realisable

Cash & cash equivalents 538,842 - - 538,842

43

MANLY GOLF CLUB LIMITED

(c) Market risk

Interest rate risk Interest rate risk is managed with a mixture of fixed and floating rate debt. At 30 September 2012,

$4,000,000 of the CBA Better Business Bill facility has a fixed interest rate. The remaining $2,310,000

was at variable rates. The CBA Business loan has a variable interest rate. The Pastlink Properties loan has

a fixed interest rate payable on repayment of the loan.

Exposure to interest rate risk arises on financial assets and financial liabilities at the end of the reporting

period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate

financial instruments. The company is also exposed to earnings volatility on floating rate instruments.

Weighted

Average

Effective

Interest

Rate

Total

Floating

Interest

Rate

Fixed

Interest Rate Non Interest

Bearing

2012

%

2011

%

2012

$

2011

$

2012

$

2011

$

2012

$

2011

$

2012

$

2011

$

Financial

Assets

Cash at Hand

Cash at Bank

-

3.95

-

5.00

6,950

531,892

7,950

727,113

-

531,892

-

727,113

-

-

-

-

6,950

-

7,950

-

Total

Financial

Assets

538,842

735,063

531,892

727,113

-

-

6,950

7,950

Financial

Liabilities

Pastlink Loan*

CBA

Fixed Bill

Fixed Bill

Variable Bill

Variable Loan

Finance Leases

7.00

8.33

9.02

4.14

7.65

7.16

7.00

8.33

8.95

7.13

8.31

1,906,438

2,000,000

2,000,000

2,310,000

600,000

102,206

900,000

2,000,000

2,000,000

850,000

1,000

-

-

-

-

2,310,000

600,000

-

-

-

-

850,000

1,000

-

1,906,438

2,000,000

2,000,000

-

-

102,206

900,000

2,000,000

2,000,000

-

-

-

-

-

-

-

-

-

-

-

-

-

Total

Financial

Liabilities

8,918,644

5,751,000

2,910,000

851,000

6,008,644

4,900,000

-

-

*Pastlink Properties Holdings Pty Ltd loan

Price Risk

Price risk relates to the risk that the fair value of future cash flows of a financial instrument will

fluctuate because of changes in market price securities.

The entity is not exposed to any material commodity price risk.

44

MANLY GOLF CLUB LIMITED

(d) Net Fair Values

The net fair values of assets and liabilities approximate their carrying value. No financial assets and

financial liabilities are readily traded on organised markets. Financial assets where the carrying amount

exceeds net fair values have not been written down as the company entity intends to hold these assets to

maturity.

The aggregate net fair values and carrying amounts of financial assets and liabilities are disclosed in the

balance sheet and in the notes to the financial statements.

18. EVENTS AFTER BALANCE SHEET DATE

On 20th

October 2012, the Club sold 30 Balgowlah Rd, Fairlight at auction for $800,000. Settlement is expected

to take place in December 2012. Settlement for both properties 15 and 17 Suwarrow Sts, is expected to take place

in December 2012.

On 25th October 2012 a debt repayment was made to Pastlink Properties of $900,000 plus $75,825.20 interest .

19. NOTES TO STATEMENT OF CASH FLOWS

RECONCILIATION OF CASH

For the purpose of the Cash Flow Statements, cash includes cash on hand and in banks and investments in money

market instruments net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the Cash

Flow Statements is reconciled to the related items in the Balance Sheets as follows:

2012 2011

$ $

Cash at bank 531,892 727,113

Cash on hand 6,950 7,950

538,842 735,063

RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH

PROFIT AFTER INCOME TAX

Net Operating Loss (3,349,024) (2,995,256)

Non cash flows

Depreciation 451,159 498,908

Unrealised gain - -

Write-off of course redevelopment costs 3,151,738 2,752,744

CHANGES IN OPERATING ASSETS & LIABILITIES

(Increase)/Decrease in Debtors (84,533) (669,400)

Decrease in Stock on Hand 8,074 2,781

Decrease/(Increase) in Prepayments and Deposits (3,006) (18,407)

Increase/(Decrease) in Trade Creditors (93,650) (268,790)

Increase/(Decrease) in Sundry Creditors/Accruals (41,315) 158,735

Increase/(Decrease) in Subscriptions in Advance (67,356) 946,069

Increase in Other Provisions 40,509 34,656

NET CASH INFLOW FROM OPERATING ACTIVITIES 12,596 442,040

45

MANLY GOLF CLUB LIMITED

2012 2011

$ $

20. CAPITAL AND LEASING COMMITMENTS

Capital expenditure commitments contracted for:

VS Flemming Pty Ltd Course

Redevelopment Stage 1 North Links - 142,687

Redevelopment Stage 2B South Links 46,477 4,613,769

Payable not later than 12 months

Operating Lease Commitments

Non-cancellable operating lease commitments contracted for but not capitalised in the financial statements

Payable – minimum lease payments

- not later than 12 months 14,884 14,884

- later than 12 months but not later than 5 years 20,823 35,707

35,707 50,591

21. SEGMENT INFORMATION The Company operates predominantly in the Club industry. The principal activities of the Company were the

operation of a Golf Club. The Company operates in one geographical area, being Manly, New South Wales, and

Australia.

22. ENTITY DETAILS The registered office and the principal place of business is:

Manly Golf Club Limited

38-40 Balgowlah Rd

Manly NSW 2095

46

INFORMATION FOR THE DIRECTORS

ON THE 2012 FINANCIAL STATEMENTS

ADDITIONAL INFORMATION

The Trading Statement and Notes to the Trading Statement contained on pages 47 to 49 for the year ended 30

September 2012, have been prepared from the accounting and other records of Manly Golf Club Limited and

have been subject to the tests and other auditing procedures applied in our examination of the financial

statements for the year ended 30 September 2012.

The Trading Statement and Notes to the Trading Statement do not form part of the financial report in respect

of the year ended 30 September 2012, referred to in our report to members and accordingly we do not express

an audit opinion thereon.

CABEL Partners

Chartered Accountants

Phillip Browne

phillip@cabel.com.au

North Sydney Dated this 12th of November 2012

47

MANLY GOLF CLUB LIMITED

TRADING STATEMENT FOR YEAR ENDED 30 SEPTEMBER 2012

Note 2012 2011

GENERAL & COURSE INCOME $ $

Subscriptions and Levies 2,895,333 2,753,876

Construction Levy 260,425 407,420

Rent 50,050 54,500

Other income including interest 35,189 50,360

3,240,997 3,266,156

HOUSE / GOLF SHOP – TRADING INCOME

BAR

Sales 661,795 602,517

Cost of sales 262,393 244,471

Gross profit

Gross Profit %

399,402

60.4%

358,046

59.4%

CATERING

Sales 983,591 999,455

Cost of sales 341,130 336,317

Gross profit

Gross Profit %

642,461

65.3%

663,138

66.4%

BAR & CATERING

Wages 1,027,325 1,017,563

Other Expenses 135,490 152,079

Trading Deficit (120,952) (148,458)

GOLF AND GOLF SHOP

Merchandise sales 276,277 260,205

Cost of sales 185,273 175,488

Gross profit merchandise sales

Gross Profit %

91,004

32.9%

84,717

32.6%

Golf visitors and comp fees revenue 175,727 86,026

Other Revenue - Cart hire, tuition, storage 143,338 139,273

Sub total gross profit and other revenue 410,069 310,016

Wages 346,841 329,818

Other Expenses 112,031 96,028

Trading Deficit (48,803) (115,830)

TOTAL TRADING INCOME 3,071,242 3,001,868

Less: Expenses A 3,345,163 3,357,664

NET TRADING DEFICIT FROM ORDINARY ACTIVITIES (273,921) (355,796)

ADD:

Entrance Fees

Rent 87 Balgowlah Rd

Gain/(loss) on disposal of fixed assets

Interest and bank loan fees

567,779

80,002

11,909

(583,055)

567,869

79,998

(43,002)

(491,581)

(197,286) (242,512)

LESS:

Grant received Australian Govt Stormwater Harvesting

Golf Course Redevelopment Costs

1,262,900

(4,414,638)

828,800

(3,581,544)

NET OPERATING (LOSS)

(3,349,024)

(2,995,256)

Accumulated losses at the beginning of the financial year (5,461,358) (2,466,102)

ACCUMULATED LOSSES AT FINANCIAL YEAR END (8,810,382) (5,461,358)

This report should be read in conjunction with the attached disclaimer.

48

MANLY GOLF CLUB LIMITED

NOTES TO TRADING STATEMENT

FOR YEAR ENDED 30 SEPTEMBER 2012

NOTE A: EXPENDITURE Notes

2012

$

2011

$

Employee costs and entitlements B 1,748,896 1,682,242

Depreciation excluding carts 420,919 468,668

Course maintenance C 397,550 407,358

House expenses D 334,021 392,101

Insurance 66,816 71,173

Computer Expenses 51,745 51,539

Affiliation fees 47,680 44,946

Postage, printing, stationery and telephone 47,404 48,519

Marketing / advertising 46,990 32,540

Rates 40,679 43,206

Donations and subscriptions 27,414 7,750

Auditors remuneration 3 23,820 21,745

Security and fire monitoring 18,536 15,503

Members’ amenities 15,106 16,767

Rent – equipment 14,146 15,627

Sundry expenses 13,458 3,575

Fixture books 10,160 9,867

Bank and credit card charges 7,861 11,165

Directors expenses 7,857 11,970

Repairs – houses 2,409 827

Legal expenses 1,696 576

3,345,163 3,357,664

NOTE B: EMPLOYEE COSTS AND ENTITLEMENTS

Salaries, wages and contractors 2012

$

2011

$

Course 1,089,763 1,052,774

Administration 544,417 522,261

House 51,932 45,986

Staff Meals and uniforms 49,363 53,626

Staff Training 11,767 5,869

Staff Recruitment 1,654 1,726

1,748,896 1,682,242

Note: Salary and Wages on costs for Staff Superannuation, Workers Compensation Insurance, Payroll Tax

and Fringe Benefits Tax have been included in the respective salary and wage cost centres.

This report should be read in conjunction with the attached disclaimer.

49

MANLY GOLF CLUB LIMITED

NOTES TO TRADING STATEMENT

FOR YEAR ENDED 30 SEPTEMBER 2012

NOTE C: COURSE MAINTENANCE

2012

$

2011

$

General Maintenance 145,901 119,002

Fertilisers and chemicals 121,764 119,114

Water 33,219 85,367

Repairs to plant 32,252 36,060

Sand and Soil and Bunkers 23,495 12,770

Petrol and Oil 23,160 20,769

Power 17,759 14,276

397,550 407,358

This report should be read in conjunction with the attached disclaimer.

NOTE D: HOUSE EXPENSES

2012

$

2011

$

Cleaning contract, materials, linen and paper products 109,298 106,584

Light, power, gas and water 78,149 74,233

Building and furniture repairs and improvements 74,571 140,304

Laundry 38,996 40,065

Garbage service and pest control 15,931 24,672

Soaps, toiletries, flowers and sundries 8,843 6,243

Water 8,233 -

334,021 392,101

This report should be read in conjunction with the attached disclaimer.

50

MANLY GOLF CLUB LIMITED

THE PLAY

DECEMBER 2011 TO NOVEMBER 2012

NAME OF EVENT

Club Champion Andrew Bryon

A Reserve Champion John McCafferty

B Grade Champion Garrick Bryant

C Grade Champion Ric Hedley

Seniors Champion Phil Speer

Veterans Champion John Bergin

Colts Champion Tim Paul

Junior Champion Charlie Adare

Foursomes Champions Andrew Bryon & David King

Mixed Foursomes Champions Julian Jackson & Kate Thomas

Fourball Champions Andrew Bryon & Michael Hill

Patrons Trophy Winner John Bell

Presidents Trophy Winner Marios Chrysiliou

G J Wilkinson Shield Winners Colin & Marianne Rudd

David Thomas Memorial Trophy Winner Gavin Williams

Manly Golfers Cup Winner Andrew Bolton

C F W Lloyd Cup Winners Laurie Leech & Philip Garden

Salonica Cup Winner Gary Susans

Grandfather's Cup Winner Gavin Fish

E L Apperly Winner Philip Speer

J B Ferrier Winner Gavin Williams

Easter Cup Winner Graham Kells

AIF Cup 2nd

AIF Winner Ken Herringe

Clubhouse Cup Winners Gerry Elkan & Fay Cochran

J S Macqueen Trophy Winner Martin Patience

Founders Cup Winner Mark McDougall

Indooroopilly Trophy Winner Brian Gordon

Father & Son Trophy Winners Roger & Warwick Amos

Manly Links Men’sTrophy Winner Warwick Dawson

Manly Links 2BBB Medley Winners Justin White & Stuart Penny

Manly Links Men’s Draw Competition Winner Jeffrey Johnson

51

MANLY GOLF CLUB LIMITED

MONTHLY MEDAL WINNERS 2012

DECEMBER 2011

JANUARY 2012

A Grade Anthony Smith A Grade Leeroy Martin B Grade Russell Wood B Grade Mark Siebold C Grade Ken Tuckey C Grade Paul Fenn

FEBRUARY 2012

MARCH 2012

A Grade Leeroy Martin A Grade Darryl Tweedale B Grade Russ Lewis B Grade John Bell C Grade Andrew Bolton C Grade Frank Crott

APRIL 2012

MAY 2012

A Grade Brent Haverfield A Grade Mark McDougall B Grade Graham Kells B Grade Mike Clarkson C Grade Keith Andrews C Grade Bruce Barry

JUNE 2012

JULY 2012

A Grade Anthony Smith A Grade Kim Gilbert B Grade Nathan Defries B Grade Gary Susans C Grade Bill Walker C Grade Martin Patience

AUGUST 2012

SEPTEMBER 2012

A Grade Anthony King A Grade Philip Speer B Grade Ray Beattie B Grade David Buckley C Grade Martin Patience C Grade Steve Mater

OCTOBER 2012

NOVEMBER 2012

A Grade Gavin Williams A Grade Robert Guest B Grade Michael Taylor B Grade Gerry Elkan C Grade Kevin Hurley C Grade Michael Horton

52

WOMEN’S EVENTS 2011/12

Trophy Name Winner/RU Name Canadian Foursomes Club Presidents Trophy Winners Helen Barker & Jill Makaroff

Fourball Cup Women Captain's Trophy Winners Janet Meagher & Ali Gray

Runners-up Helen Crott & Noreen Carmichael

Links Trophy Winner Jean Kirk

Grandmother's Trophy Winner Pauline Webb

Patron's Trophy Winner Jodie Lord

Dunlop Cup (President's & Captain's Day) Winners Betty Alexander, Kerry Kelly, Sue Gaunt & Pauline

Webb

Director Of Golf Trophy Winner Maureen Duesbury

Elizabeth Cavill Trophy Winner Margaret Meakin

Winifred Triglone Salver Winner Maureen Collins

Champion of Champions 2009 Winner Not played

Doris Thompson Trophy Winner Margaret Bennett

Best Scratch over Season Silver Winner Frances Nicholas

Best Scratch over Season Bronze Winner Margaret Meakin

Most Reduced handicap Div I Winner Frances Nicholas

Most Reduced handicap Div II Winner Philippa Barr

Most Reduced handicap Div III Winner Janet Meagher

Wilkinson Memorial Trophy (Most Improved) Winner Silver – Jodie Lord, Bronze – Beth Haskins

Most Improved Div III Winners Ali Gray & Tamara Madden

Mrs Clarke’s Cup Winner Kathryn Riisfeldt

Club and Foursomes Championships

Club Foursomes Championship Winners Gae Larcombe & Anne Hutchison

Runners-up Christine Gordon & Maureen Collins

Bronze Foursomes Championship Winners Margaret Dash & Judy Walmsley

Runners-up Janet Meagher & Ali Gray

Club Championship Winner Chris Gordon

Runner-up Tarina Foote

Club Championship Flight Winner Suzanne Simaitis

Runner-up Jodie Lord

Bronze Championship Winner Gail Fitzhardinge

Runner-up Vanna Mutton

Bronze Championship Flight Winner Philippa Barr

Runner-up Barbara Maggs

Bronze II Championship -Winnie Emanuel Winner Kathryn Riisfeldt

Runner-up Pauline Webb

Veteran's Trophy

Veteran's Challenge Brooch Div I Winner Gae Larcombe

Veteran's Challenge Brooch Div II Winner Margaret Meakin

Veteran's Challenge Brooch Div III Winner Sue Gaunt

Senior Vet Winner Barbara Maggs

Veteran's Women's Golf Point Score Winner Audrey Galloway

Runner-up Maureen Collins & Lorelle O’Neill

K M Armstrong Cup Winner Gail Fitzhardinge

Runner-up Kay Anderson & Maureen Collins

Mosman Cup Winner Margaret Meakin

Senior Veteran's Women's Golf Point Score Winner Audrey Galloway

Gobblers Winner Carole Noritis

Birdie & Eclectic Competition

Birdie Div I Winner Gae Larcombe

Birdie Div II Winner Lynne Amos

Birdie Div III Winner Jan Press

Birdie – Weekend Winner Kate Thomas

53

MANLY GOLF CLUB LIMITED

MEMBERSHIP DETAILS

AS AT 30TH

SEPTEMBER 2012

MEN WOMEN TOTAL

Membership 2012 2011 2012 2011 2012 2011

7-Day Playing 471 469 3 4 474 473

Provisional 7-Day Playing 0 0 0 0 0 0

Senior 7-Day Playing 24 27 0 0 24 27

Intermediate 7-Day Playing 41 40 0 0 41 40

Junior 7-Day Playing (12-17) 23 19 0 0 23 19

Country 7-Day Playing 27 26 4 5 31 31

5-Day Playing 95 97 258 260 353 357

Provisional 5-Day Playing 0 0 0 0 0 0

Senior 5-Day Playing 7 7 9 9 16 16

Intermediate 5-Day Playing 9 3 4 4 13 7

Junior 5-Day Playing (12-17) 2 4 2 4 4 8

Country 5-Day Playing 10 8 11 11 21 19

Special Senior Playing 41 47 17 20 58 67

Bowling 6 8 3 3 9 11

Absentee 53 48 3 4 56 52

Non-Playing 131 131 43 43 174 174

House 21 28 59 68 80 96

Special 0 1 0 0 0 1

Life 1 2 1 1 2 3

Honorary Members 2 2 0 0 2 2

Overseas 0 0 0 0 0 0

Talented Junior 7-Day 4 7 0 0 4 7

Talented Junior 5-Day 0 0 3 4 3 4

TOTAL 968 974 420 440 1388 1414

54

MANLY GOLF CLUB LIMITED

COURSE REDEVELOPMENT SUMMARY INTRODUCTION Following 11 years of investigations, planning and liaison with members, council, government departments, community, consultants and contractors the Club has invested in establishing a new challenging layout that will attract and retain members and corporate clients for many years into the future. The course can now effectively drain after flooding and be efficiently maintained to a much higher standard at lower costs than the previous course. WHY WE NEEDED TO CARRY OUT A COMPLETE REBUILD While drainage was the primary driver behind the need to redevelop the course, there were other issues that needed to be addressed.

Insufficient water source or storage.

An irrigation system over 30 years old which only covered 50% of fairways, pipes 50-80% blocked with iron oxide and in need of an upgrade.

Old push up greens, many infested with couch, tees inadequately sized and built on building rubble.

Design not marketable to compete with other clubs, attract new members and corporate clients.

Excessive tree numbers impacting golf corridors, light penetration and turf quality in high-wear areas.

Safety issues with a major road on holes 4 and 10.

Congestion/lack of area, internal safety and need to access the 3,000 square metres of unused land west of Burnt Bridge Creek.

The Club was spending as much as similar private clubs on maintenance whilst only occasionally being able to achieve similar presentation standards.

Virtually no all-weather cart paths. In late 1998 the Board agreed to begin the investigations required to develop a Master Plan. In April 2000, it was agreed to seek EOI’s from four course architects, namely Newton, Grant & Spencer, Graham Papworth, Thomson Wolveridge & Perrett (TWP) and Ross Watson. In June 2000 the then Board appointed TWP as course architects. From then on until August 2006 much of the effort went into searching for a water supply. WATER Coupled with the issues with the golf course that led to the Master Plan decision was the need to shore up an alternative or secondary water supply. The Club has long relied on bore water from a small aquifer that provides around 450kl per day. This source is gradually increasing in salinity and is inadequate throughout the peak of the summer. Creating a large storage on site was prohibitive due to area involved, flooding and groundwater. From 1998 through to 2011 the Club finalised the case to Members as to why we needed a new golf course and pursued the following alternatives to augment the bore supply:-

A pipeline to Manly Dam (a 30 hectare water body previously used to supply potable water to the local area). We could not gain the necessary support from Manly and Warringah Councils.

Increased bores and bore water (testing exhausted).

Treated effluent returned from North Head sewage treatment works (a $1.6 million grant to run a pipeline to the course was returned after Sydney Water infrastructure failed).

Sewer mining on site (insufficient flows).

Harvesting water from Burnt Bridge Creek via a weir (advised by DWE and Council against this option).

Harvesting water from Manly Lagoon via reverse osmosis (treatment expensive, not environmentally supported, issues with waste stream).

Aquifer recharge (after initially being told by Manly Council’s Scientific Advisory Panel to pursue Aquifer recharge instead of Manly Dam, Council would not approve our DA with an Aquifer recharge pond without

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extensive further research into the fate of stormwater pollutants).

Harvesting storm water from Cemetery Creek via a small storage pond. (The Club successfully sought a Grant from the Department of Sustainability, Environment, Water, Population & Communities. Australian Government’s ‘Water for the Future’ National Urban Water and Desalination Plan received December 2010). This pond should supply around 30-40 megalitres per annum. The stormwater will require chlorination prior to use due to very high faecal coli form levels.

WHAT WE ENDED UP BUILDING What initially started as re-contouring, new tees, greens, bunkers, drainage and an irrigation system, eventually included 660 metres of new waterways, 7 bridges and a 50 metre boardwalk, dewatering, acid sulphate soils treatment, lined creeks and pond, 3.2 kms of cart paths and the meeting of many conditions imposed by the various government departments. In summary the development included: 18 holes, spare and 2 practice facilities. Conversion of 7.8 hectares of turf to native indigenous landscape. Establishment of 3 hectares of new Riparian zones. Planting of 250,000 native plants of 63 different species. Creation of 7,000 square metres or 660 linear metres of waterways/aquatic habitat Re-routing of Burnt Bridge Creek and the building of a weir. Planting of species from endangered Swamp Oak floodplain forest community. Planting of forage species for threatened Osprey, Gang Gang Cockatoo, Glossy Black Cockatoo and Grey

Headed Flying Fox. Treatment, validation and re-use of 6,000 cubic metres of Potential Acid Sulphate Soils (PASS). Cut and fill of 60,000 cubic metres, many of which was double and triple handled. Construction of 7 new bridges and a 50 metre boardwalk. Installation of 3.2 kms of concrete cart paths. Installation of a new electricity sub-station. Installation of two 500kl tanks, pump station and irrigation system. Construction of a lined 5 megalitre stormwater harvesting pond, pump transfer station, bore water

treatment and stormwater treatment systems. Installation of an Ecosol 4900 Gross Pollutant Trap (GPT). Construction of a new 132 space car park. Dealing with four floods including a 1 in 20 year event. Conversion from Kikuyu to Windsor Green Couch. Due to the sensitive and high profile nature of the site, gaining approvals for such a major change of landscape required considerable investigation and negotiation, and as it turned out greater expenditure than originally envisaged. Once the DA was approved, design and specifications from most consultants needed further work to comply with conditions and achieve sufficient detail to supply construction information and carry out the tender process. The following were reviewed:

Course design detail including, degree of slopes, green and tee sizes, drainage plan, paths, landscape.

Golf course construction specification. The detailed written description of how everything should be built, i.e. greens profile, bunker drainage/ matting etc, thickness of mulch, use of site soils etc.

Engineering detail, drawings and wording. Drainage networks to achieve removing all surface water, flat spots in design surface.

Thickness and detail in paths.

Bridge construction vs. cost.

Compaction required for sub-base etc.

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After receiving the DA with its 101 conditions, the Club and its consultants had to display how these conditions would be met prior to and during the development to receive a Construction Certificate (CC). One of the major issues was flooding, with council employing their own consultants to review the flood modeling carried out for the project. Once the council and the private certifier had sufficient evidence and assurance that the Club would meet the conditions of the DA, a CC was provided enabling the commencement of construction. CONTROLLED ACTIVITY APPROVAL (CAA) Due to the fact that works were within 40 metres of a waterway, a ‘General Terms of Approval’ was required from the DWE (now DECCW) as part of the initial Development Application. This, like the DA, sets out initial conditions. These requirements must be met to achieve a Controlled Activity Approval (CAA) from the DECCW to commence work. Requirements include; a Vegetation Management Plan (VMP), agreed Riparian corridors, details on any structures in or adjacent to waterways, species used, minimum planting numbers and density, maintenance programs and a bond to the cost of the establishment of the Riparian zones ($350,000). The CAA was received in October 2009. STAGES OF RE-DEVELOPMENT PLANNING THROUGH TO CONSTRUCTION

Harness Club and member support for change and Master Plan.

Searching for Water.

Working through the Concepts to the final layout to present to members.

Funding proposal and Master Plan approval.

Preparing the Development Application (DA).

Modifying and elaborating on the DA to achieve approval.

Detailed design and documentation to meet DA conditions and achieve Construction Certificate (CC).

Tender Process.

Construction.

Agronomics and Grow-in.

Finance.

HARNESS CLUB SUPPORT As all members know the Club is in a great location demographically. The recently renovated heritage listed Clubhouse provides a wonderful and historic home for members and guests. Providing a high quality golf course was necessary to secure future income. The site, like many golf courses, was built on land not suitable for anything else and so to bring the course up to modern day standards there were many difficult issues to overcome. Addressing these issues and overcoming the layout shortfalls would prove to be a major challenge.

Site Background Manly Golf Club is situated on the Northern Beaches of Sydney. The course lies 500 metres west of Queenscliff Beach adjacent to Manly Lagoon. An 18 square kilometre catchment drains into Manly Lagoon which has its opening at Queenscliff Beach. A large percentage of the golf course lies on the flood plain and is submerged to some extent most years at least once. The Club relies very heavily on the low flow pipes that connect the lagoon to the ocean and the emergency opening of the beach during flood events. The low lying and flat nature of the site has led to many efforts to improve drainage since the land was purchased from 87 separate owners between 1906 - 09. Early efforts to improve drainage included digging swales, hand drains and assisting with digging out the opening to the beach. Dredging of the lagoon to fill and raise some areas above the water table also took place. While there is no doubt these works improved drainage and recovery after flooding, the site was still extremely prone to damage. Over the last 14 years the course has been closed to some extent for 258 days. While drainage was the primary driver behind the need to redevelop the course, there were other issues that needed to be addressed. FROM CONCEPT TO MASTER PLAN The process from 1998 through to the start of construction went through the following steps:-

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Survey members to assess support for the redevelopment and value placed on aspects of site, course and

possible design. Survey results were processed and used to support the ongoing push for redevelopment and develop the Manly Golf Club Design Brief. Survey topics were Layout and Design, Maintenance, Environment, Turf Quality, Construction and other factors. 350 members responded, with support from 88-95% for many of the questions regarding the need for redevelopment.

Select a suitable course architect company. Committee visits were arranged at other Clubs to inspect and assess desirable qualities of architects.

Develop comprehensive brief utilising Club expectations, course asset issues and limitations, member profile, future target clientele and member survey results to ensure design was suitable for Club and maintainable.

The selected architects Thomson Wolveridge and Perrett (TWP) now Thomson and Perrett (TP) then carried out a site assessment.

TWP identified site strengths and weaknesses to commence the concept planning process. Some of the key limitations and problems identified by the Company were: - Less than an ideal size area for 18 holes, Bowling Green and practice facilities. Proximity to busy roads. Inefficient use of available area. The South Links has 12 holes on 18 hectares; the North Links has 6 holes

on 18 hectares. Flat low-lying nature of the site. Difficulty in achieving returning nines due to the two parcels of land. The poor flow of play on several holes with long green to tee walks and cross-overs. Safety concerns and disruptions on several holes due to close proximity to other holes. Excessive and inappropriate plantings. Dangerous and inefficient practice facilities. TWP and the Club worked through the eventual 10 concept plans to reach what was most suitable to site, members and the Board. Considerable time was spent on trying to fit in a large practice facility. This was not feasible without significant impact on the golf course. Members were consulted and informed throughout the process. Many reports, bulletins, meetings and presentations were provided to sell the project to members, get their feedback, harness support and develop ownership for the process. The choice of what information and when to provide to members was critical throughout the process. It was imperative to carry out initial presentations and meetings with authorities to identify critical engineering and approval hurdles to overcome. Many meetings and presentations were made to government bodies and the community to identify the legal and political issues to be considered and addressed. These issues and hurdles kept unfolding right up until gaining the Construction Certificate in mid-2009 before construction commenced. FUNDING AND MASTER PLAN APPROVAL Over the same period the Club was investigating the Master Plan, they also had to determine how such a plan could be funded. What initially started as re-contouring, new tees, greens, bunkers, drainage and an irrigation system, eventually included 660 metres of new waterways, 7 bridges and a 50 metre boardwalk, dewatering, acid sulphate soils treatment, lined creeks and pond and many conditions to meet the various government department requirements. Hence the budget kept climbing from the original estimates of $5 million to eventually costing around $13.5 million. It was in 2006 that the option to develop or lease the Club’s car park gave the Club a real chance of achieving the development. An original DA to develop town houses over an underground car park across the road from the Clubhouse then led to the lease of the car park for $4 million for 50 years.

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After 8 years of investigations, consultation and planning, Members met at an Extraordinary meeting in August 2006 to vote on the new Master Plan. 550 members filled both floors of the Club to voice their opinion on the course upgrade. 95% supported the Master Plan. Members also voted to lease the car park and sell 85 Balgowlah Road to enable funding for the course development. PREPARING THE DEVELOPMENT APPLICATION Development Consent Process The following steps needed to be followed when preparing and lodging the development application with Manly Council:

Consideration of environmental planning instruments, policies, codes and guidelines relevant to the development;

Preparation of a concept proposal;

Attendance at a pre-DA meeting with Council to identify areas of non-compliance;

Consultation with adjoining properties;

Amendment of the proposal;

Preparation of Statement of Environmental Effects (SEE), DA plans and technical reports;

Completion of DA form and checklist; and

Lodgement of DA and payment of fees. Following lodgement, a formal community consultation process was undertaken by Council as is mandatory for all development in an Open Space Zone in accordance with the Manly LEP. Consultation takes place through a letter drop to adjoining and nearby properties, an advertisement in the Manly Daily newspaper, erection of a site notice and referral to the Ocean Beach, Ivanhoe Park and Balgowlah Precinct Committees. All members of the community have an opportunity to make written submissions during the public exhibition period. Submissions are considered and the proposal amended where necessary. An assessment report on the application by a Council Assessment Officer is then considered by either the Land Use Management (LUM) Committee, or the Development Control Unit (DCU) for determination in accordance with Section 79c of the EP & A Act, Manly LEP and relevant DCPs. Following determination, written notification is received by the applicant regarding Council’s decision. In conclusion, review of the EP & A Act, EP & A Regulation, SEPP (Major Projects) and Manly LEP indicated that the redevelopment of the Manly Golf Course would fall under Part 4 (Development) of the EP & A Act. The proposed redevelopment was considered non-designated, integrated development and the Statement of Environmental Effects was prepared accordingly. Approvals required from State Government agencies include a permit from the Department of Water & Energy under Part 3A of the RFI Act, and a permit from NSW Fisheries under Part 7 of the FMA Act. The proposed redevelopment of Manly Golf Course was considered to be consistent with relevant Manly Council policies and plans. Stakeholders in Development Due to the sensitivity of the site’s location, approvals and negotiations took some time. The Club held many meetings with government departments and resident groups to explain the proposed development, the reasons it was necessary and the benefits to the community. The first presentation was February 2002. Presentations were carried out at the Club with course inspections and at the various government offices. Government agencies involved were Manly and Warringah Councils, Department of Land and Water (now DECC water), Department of Primary Industries Fisheries (now NSW Industry and Investment Fisheries). Non-government groups consulted were the three local precinct committees.

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While the presentations and discussions with authorities started in 2002 formal applications did not commence until after the Master Plan was adopted by members in 2006. The following year detailed investigations to produce the Statement of Environmental Effects and Development Application took place. The DA was lodged in October 2007. Development Approval was received in December 2008. The Approval contained 101 conditions. Further investigations and consultant reports to adhere to the conditions and obtain a Construction Certificate took around 8 months with the Construction Certificate received in October 2009. Major Issues Major issues raised by the authorities-

Flooding impacts of development. Flood compartment, flood levels;

Potential Acid Sulphate Soils;

Tree Protection/removal;

Stormwater quality;

Contamination. Whether past filling with industrial or building waste products had taken place;

Impact on Flora and Fauna;

Community concerns;

Erosion and Sediment control;

Roads and Traffic management;

Visual Impact;

Noise;

Filling or installing a culvert in a section of existing creek;

Filling a portion of the Lagoon;

Loss of aquatic habitat;

Fish passage. Consultants To address the concerns raised and conditions of approval by both Council and the various departments the following consultants were required:

Golf course architects and landscape design;

Engineering civil, geotechnical, structural, flooding, stormwater, hydraulic, hydrology, electrical

Terrestrial and aquatic ecologist;

Contaminated site auditor (two required);

Noise and visual;

Acid Sulphate Soils. Engineering Issues One of the key difficulties of the site was the need to re-contour to overcome stagnant surface water after the inevitable flooding. As the site is in a floodplain this had to be achieved without any loss of flood compartment or the importation of any fill. Ross Perrett from TP suggested creating waterways to produce the fill required to raise and contour the fairways to achieve surface runoff. Basically the lagoon was extended back into the course to create the extra 7000m2 of aquatic habitat. This obviously greatly increased the budget for the works but was the only option. Other engineering and approval issues dealt with were:- A minimum of two for one increase in aquatic habitat was required by Fisheries, i.e. the area we proposed

to fill to access the unused land had to be doubled elsewhere. To access the land for the 8th hole a section of Burnt Bridge Creek (BBC) had to be filled and the creek re-directed along the Club’s boundary. A seven to one ratio was eventually provided.

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Diverting flow from BBC with a weir into the new Estuarine Channel.

Obtaining approval for the 50 metre boardwalk over Manly Lagoon to access our land for the 8th tees. Flood modelling to prove the proposed design would not negatively impact on flooding in a 5-year, 20-year and 100-year flood event. This required several manipulations of the surface with one green dropped considerably and several fairway changes. Initially it was intended to keep the greens above the 1-in-20-year flood level, however, this could not be achieved. Early flood modelling showed an increase in flood level of less than 10mm. This was originally considered acceptable by the Flood Division of the Department of Land and Water as it was less than the accuracy of the model. Manly Council stipulated the model result be zero. Finally a result of less than 3mm was accepted in a 100-year flood.

Evidence of improved downstream stormwater quality was necessary. MUSIC modelling (Model for Urban Stormwater Improvement Conceptualisation) is used to model nutrient loads from the catchment in various scenarios to prove an improvement from the new design

New Waterways Design-wise, the new waterways brought the possibility of natural hazards and visual features not originally considered. Whilst Manly GC was adjacent to Manly Lagoon, water hazards were never a key feature of the course. The course was a parkland course only consisting of trees and turf. The conversion to more natural vegetation was going to be a major shift in the style of course back to its early years. The extent of the landscape required to appease authorities was going to make the course much more difficult. MODIFYING TO ACHIEVE APPROVAL Dialogue with Council staff throughout the assessment of the initial Development Application identified areas where changes had to be made, where more detail was required or what issues may need contesting. Contesting Conditions As with any Development Application you must have enough positive outcomes from the development to gain support for the project. This project presented considerable environmental risk and disruption which had to be outweighed by the benefits. Authorities will endeavour to achieve benefits for the community and environment as conditions of the development. Some can prove very difficult to meet. Those required by legislation cannot be avoided. Those desired by the Council but not the result of legislation may need to be contested.

Two demands requests placed on our development that we rejected were :-

The development should lower flooding in the rest of the floodplain.

If climate change causes flooding to increase the golf course development should try to reduce this for the rest of the flood plain. These conditions could not be enforced by legislation.

The Development Application was approved in December 2008, a little over a year from when it was lodged.

TENDER PROCESS North Links With the assistance of the engineer and the course architect a tender document was prepared. Tenders were called from golf course construction companies recommended by Thomson Perrett being:

Grove Turf Construction Pty Limited;

Flemming Golf;

Turnpoint; and

McMahons.

At the close of tenders all but McMahons responded. The tenders for the North Links’ works were all in excess of $10,000,000. On review by the Club’s General Manager and Course Superintendent the quotes were found

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to have pricing duplication, include GST and there was clearly a lack of understanding of the earthmoving requirements.

Following negotiations the prices tabled were:

Grove: $8,101,696

Flemming Golf: $8,526,858

Turnpoint: $9,717,225 These numbers were still above affordability. During follow up meetings it became evident that the professional tender document prepared by Worley

Parsons contained many conditions and risk factors not normally associated with the type of earth-moving

work required for the project. The specifications for bridges, concrete paths, landscaping, etc. were clearly in

excess of those normally associated with golf course construction.

Following many meetings with contractors and sub-contractors, a redesign of the methodology and many aspects, particularly cartage, we were able to reduce the price for the North Links works to $6.7 million. A fixed price contract was signed with the lowest bidder being Flemming Golf for $4,834,355 with direct and other costs outside the contract totaling $1,865,645. The major achievement was to leave the flood risk with the contractor. The construction of the North Links commenced in October 2009. Progress was delayed by some extended wet periods including flooding, particularly during the winter of 2010. Almost no work was carried out in July and August due to constant rain. Work commenced on Stage 2A in September 2010 to endeavour to have the Clubhouse surrounds completed prior to peak corporate season. The final areas of the North Links, being the east end of 2 and 3 and the 9th hole, were delayed until 2A was complete. During the construction of the North Links two 500kl water tanks were installed at the maintenance compound to increase storage. The tanks receive supply from the Club’s aquifer (450kl/day), Stormwater Pond and town water when required. Stage 2A Stage 2A was made up of the Clubhouse practice area, the 1st and 10th holes, 17th green and the practice range. A tender was prepared, however, with Flemming Golf on site we were unable to attract other bidders. Consequently a contract was signed with Flemming Golf for the works costing $1,267,584. To reduce costs the Club contracted directly for irrigation, landscaping and other direct costs outside the contract taking the total budget to $1,980,429. Stage 2A was completed by January 2011. The new 10 holes were opened on May 6th 2011. Stage 2B Following a break in the works for seasonal reasons and approvals the process began again. Tenders were prepared and quotes sought. On this occasion three companies tendered with the lowest price coming from McMahons. Their price was 15% lower than Flemming Golf. We are of the view that Flemming’s tender reflected the cost of the delays caused by abysmal weather conditions they suffered during the course of the Stage 1 works. The final seven holes 12 through 18 and Stormwater Harvesting Pond were built between August 2011 and July 2012. Again several months of delay resulted from a very wet January to July when we received 1200mm of rain. Burnt Bridge Creek overflowed 6 times causing damage to the holes under construction. The resulting delays necessitated using solid turf as opposed to stolons to grass holes, 12, 16 and portions of 13, 14, 15 and 17. This enabled the holes to be opened in July even after the many inundations and re-visiting damaged works. The Stormwater Harvesting Pond proved to be one of the most challenging aspects of the project due to the variable and heavy soils, well charged groundwater and frequent rainfall. The final lined pond holds just

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under 5 megalitres with approximately 3 megalitres available to harvest. The bottom section of the pond is not pumped out due to aesthetics and groundwater pressure on the pond liner. During a summer of average rainfall the pond should supply 30-40 megalitres to the Club’s irrigation requirements. This will be a saving of $70-$90k per annum compared to purchasing town water. This along with the 50 megalitres supplied by the Club’s aquifer will supply the majority of the course needs (80-90% in average year). During periods of dry weather when the pond storage has been depleted the use of town water may be necessary. One of the benefits of the conversion to Couch from Kikuyu is the reduced irrigation requirements of approximately 10%. Couch can also tolerate long periods without rain or irrigation while still maintaining a good playing surface. CONSTRUCTION Some of the interesting aspects of the construction were:- The Weather In a few years’ time we will have forgotten the unseasonal conditions that we tolerated during the 2 years and 9 months of the construction project from October 2009 to July 2012. A few statistics tell the story of wet weather, generally winters when the course can tolerate it the least and cooler than normal summers when we needed growth in the new couch. The years 2010, 11 and 12 all had above average rainfall. In particular 2011 had 300mm above average and as we are well aware 2012 had almost reached its average by July. The statistic that probably sticks out the most is the number of months when we received over 200mm of rain. During the project this occurred on 8 occasions. Prior to October 2009 you need to go back 9 years to find 8 months that received over 200mm of rainfall. As far as delays to work are concerned as mentioned the worst time as we all know for Manly to receive rain is through the cooler months. Unfortunately the May to July period in all three years 2010-2012 were wet. We received over 400mm in this period each year (2010 500mm, 2011 464mm, 2012 400mm). Once again to search the records for the previous three May-July periods receiving over 400mm you need to go back 10 years (2001, 2003, and 2007). Obviously with the rain comes the flooding as Manly Lagoon or Burnt Bridge Creek overflows. This occurred on 11 occasions 6 of which were this year. While during any construction project you expect delays due to wet weather, we were always more vulnerable in our very low lying positions at the bottom of the catchment. With the unseasonal wet period I estimate we conservatively lost 25-30 weeks due to wet weather delays over the project. Staging Prior to the major golf course reconstruction a new car park was built on the old 1st fairway and a new shortened 1st par 3 (now 11th) was built to the Master Plan design in early 2008. The major works began in October 2009 on the North lLnks. After receiving a DA for the whole course the Club sought and received the Construction Certificate for the North Links. This allowed the 12 holes on the South Links to be played. Players played 6 of the 12 holes twice to achieve 18. During construction of the North Links a Construction Certificate was sought and received for the connecting holes the new 1st and 10th and practice facilities. This reduced the South Links to 9 holes which was played twice. In May 2011 the new holes 1-10 were opened with the members enjoying a full 18 holes for 2 months before the last 7 holes (12-18) were closed for reconstruction Contaminated Fill On the unused section of land west of Burnt Bridge Creek there had been filling at some stage which raised the area up to 4 metres. Testing of this material was required to determine the type and quantity of material. The estimated 6-7,000m3 of fill was predominantly sandstone and soil but some demolition material was found

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which included various types of building rubble some of which contained traces of heavy metals and bound asbestos. Fortunately the asbestos was in the form of ACM fibre cement and not asbestos as respirable fibres. While heavy metals were found, only one sample exceeded the nominated parks/open space assessment criteria. After the report on the fill was audited by an EPA accredited Contaminated Site Auditor, it was determined that the material could be buried above the water table if covered with 500mm of soil. The Auditors report then had to be audited by another EPA accredited auditor to satisfy Council. Disposal off-site was estimated at $1 million. Fortunately for the Club the material could be used under the 8th fairway as specified to overcome the extensive disposal costs. Dewatering Across the site all excavations deeper than a metre required dewatering. Spear (slotted PVC) point dewatering was installed around all waterways on the North Links to suck the groundwater out of the sand. These spears are positioned every few metres. This adds considerable expense to the project. Dewatering on the South Links for the Stormwater Harvesting Pond proved far more difficult. Due to the heavier soil, spears could not be used with intercepting the groundwater around the pond almost impossible. Large vertical slotted pipes surrounded with gravel were used in and around the pond to draw down the water table with pumps. Complete drying of the base of the pond was not achieved. Potential Acid Sulphate Soils (PASS) Acid sulphate soils are naturally occurring soils, sediments or organic substrates (e.g. peat) that are formed under waterlogged conditions. These soils contain iron sulfide minerals (predominantly as the mineral pyrite) or their oxidation products. In an undisturbed state, below the water table, acid sulphate soils are benign. However, if the soils are drained, excavated or exposed to air by a lowering of the water table, the sulfides react with oxygen to form sulfuric acid when re-wet. Release of this sulphuric acid from the soil can in turn release iron, aluminium, and other heavy metals within the soil. Once mobilised in this way, the acid and metals can create a variety of adverse impacts: killing vegetation, seeping into and acidifying groundwater and water bodies, killing fish and other aquatic organisms, and degrading concrete and steel structures to the point of failure. Potential Acid Sulphate Soils are those that have potential to become Acid Sulphate but have not yet been oxidised (exposed to oxygen). All areas up to 5 metres above sea level around coastal areas can have PASS. The majority of Manly golf course sits between 1 and 5 metres above sea level. Geotechnical investigations through drilling identified PASS across both paddocks. These soils varied from sands, silty sands, clays, and peat. Identifying and isolating these soils by visual ID or using survey level was necessary during construction so they could be bunded and neutralised with lime. The initial Acid Sulphate Soils Management plan developed by Worley Parsons (WP) for the DA was then used to produce a Site Acid Sulphate Soils Management Plan which was developed by Sydney Environmental and Soils Laboratory (SESL). The initial WP plan required every cubic metre of soil moved on the site to be quarantined and limed. The site plan identified that the top soils, while slightly acid, were not PASS and did not require treatment. PASS when excavated must be stored in a bunded area. Large bays for this were built by pushing up the topsoil into walls and removing any good soils down to the existing PASS layer. The walls must be at a level to prevent flood ingress. The base of the treatment area is limed. The PASS is then spread in the bunded area in 200-300mm layers, treated with lime, hoed or mixed, then tested to validate. SESL sampled the treated PASS and determined if further lime was required. All treated PASS was kept at least 300mm below the finished surface. Areas of PASS left in situ but exposed to air during the excavation where also limed such as the base of creeks, and the pond before lining. Bridge Construction The 7 bridges and boardwalk were supported on piles due to the inability of the alluvial and mixed soils to support the weight if footings were used. Piling through the lagoon for the boardwalk proved quite difficult.

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The deck on the boardwalk had to have a rubber cover to prevent noise from carts. The beams had to be painted Woodland Grey to minimize visual impact. A montage of the boardwalk was required for the approval. Power Supply The new pump station installed could not be supplied by the existing power supply. An upgrade by Energy Australia (EA) was necessary. A new substation was installed on the Club’s land to supply a 400 amp service. Considerable lead time is necessary to apply for the upgrade. A special survey is required before and after including ID of existing mains. The Club employed the Electrical Design Engineer and High voltage contractor to carry out the works. Road Closure permits were required from Council. This process took around 6 months from initial application at a cost of $130,000. The land is then handed over to EA via a deed of title. Landscape As explained a Vegetation Management Plan (VMP) was required for the DA, CC and CAA. It had to consider the potential impacts of the development from construction through to establishment. The bond paid to the DECCW is returned after comprehensive reports on the completed planting and establishment are provided. Half the bond is returned after completion of planting and half after 2 years of establishment. Progress reports including survey of riparian width, plant densities, photo evidence, maintenance, etc. must be provided to achieve the bond return. The report had to be substantiated by the Ecologist who assisted in preparing the VMP. The tube stock grown for the project were all local native species. The source of stock had to be predominantly sourced from local DNA. Planting densities in Riparian zones had to be 5 plants per metre. Approximately 7.8 hectares of the site has been converted from turf to landscape. Approximately 5.5 hectares have been planted out with a combination of aquatic plants, grasses/herbs shrubs and trees. The landscape design sets out specific areas of groundcovers, shrubs and trees to manage views, screening and shade. Tree numbers had to exceed those removed during the clearing for the new hole corridors. Planting areas have been managed to minimise the ongoing impact of shade on the future management of turf in high traffic areas. Where possible significant trees have been kept and utilised as key features in the new design. By completion 250,000 natives were planted. Sediment and Dust Control Two of the most difficult things to control during construction were sediment movement and dust control. Obviously working on a flood plain little can be done when a metre of water crosses the site. During the majority of the rainfall events it is ideal to provide a large detention area to take, treat and release runoff. Flocculating fines with Gypsum or Polyacrylamides (PAM) is recommended. Sediment fencing, stabilising surfaces as soon as possible and pit sediment control are vital components. A considerable number of booms were used in waterways and across the lagoon with geofabric curtains to trap debris or sediment. Sediment fencing was installed around the whole site adjoining creeks and the lagoon. Considerable use of large water trucks was necessary to minimize dust. Irrigation when on line, was also used. On some occasions when this was not possible or irrigation was not yet operational issues arose with neighbours. Some house cleaning was necessary. Neighbours Several letter box drops were carried out before and during the project to inform neighbours on what to expect, the benefits of the project and to thank them for their patience. Not all neighbours were cordial. Whenever neighbours called to complain, primarily about the dust and noise from beepers, I would respond as soon as possible to their concerns and where possible assist in minimising the issue and explaining what could be achieved. Listening to their concerns and making some effort to reduce the issue can often defuse a situation from becoming a major drama. A register of complaints and details was kept. We did have to employ security on a few occasions, one particularly to prevent dewatering pumps from being turned off at night. Pond Construction

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The pond design was quite interesting due to the ground water limitations. As the pond sits in water charged ground, the liner would lift if the pond was pumped below the surrounding groundwater. This may cause the liner to fracture. To ensure this does not happen two methods of insurance were employed. One was to install sensors to stop the pump when the pond level reaches the level of the surrounding groundwater. This is done with a sensor in the wet well and nearby piezometer. The other method was required if the sensor failed to cut out the pump or if the pond needs to be emptied. A drainage layer (Curtis Barrier SDV 2300) was installed under the liner to carry any hydrostatic water to a valve arrangement in the base of the pond. When the pressure from under the liner exceeds that in the pond around the valve the valve releases the pressure under the liner. To enable the groundwater under the liner to be lowered below these valves a camlock fitting was included in the valve arrangement to allow a suction pump to be attached. This should completely remove up lift pressure on the liner to enable repairs and cleaning. This pressure would be removed before the pond is fully emptied. As the liner extends up over the bank of the pond and is visible from all angles a method of covering or disguising the top section of the liner was sought out. A product supplied by Geofabrics Australia called Geoweb is suspended from a trench in the top of the bank and supports the framework to hold soil on the bank on top of the liner. As no anchors or supports can go through the liner the ‘hanging garden’ is supported by tendons anchored into the trench on the top of the pond banks. The plastic cell framework opens out to hold soil with the tendons and clips running through the cells. The cells are backfilled with soil, covered with jute and planted out with groundcovers. This provides a vegetated edge down to the high water mark. Unfortunately below this level which is exposed during summer pumping the liner will be visible. AGRONOMICS AND GROW-IN New Grasses Trials with new Bents commenced in 2000 and Couch in 2007. A chipping green was built with a selection of Bents to assess their performance. A1 was chosen for its resistance to Poa infection. Convincing Members the conversion from Kikuyu to Couch was desired and could be successful some time. In January 2007 half the 17th fairway and surrounds where converted to commence this process. Windsor green was chosen. Part of the selling of the new course was that these grasses are more efficient to maintain with the Couch performing better in lower irrigation situations then the Kikuyu. The Kikuyu was also experiencing considerable summer disease problems. At the time Primo management of Kikuyu was a much more costly exercise. TOTAL COST OF THE COURSE RECONSTRUCTION The actual incurred costs over the original estimates were a combination of approval condition driven costs (e.g. sourcing the fill required to raise the fairways by deepening the creeks, contaminated fill, dewatering, potential acid sulphate soils, new power supply and landscaping (i.e. the riparian zones) and design enhancements such as additional cart paths, wider waterways and subsequent requirement for bridges and the board walk.

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MANLY GOLF CLUB - COURSE REDEVELOPMENT SUMMARY

STAGE 1 2A 2B TOTAL ORIGINAL BUDGET $6,700,000 $1,980,429 $4,813,769 $13,494,198 APPROVED ADDITIONS $241,451 $51,596 $628,007 $921,054 TOTAL APPROVED $6,941,451 $2,032,026 $5,441,776 $14,415,252 ACTUAL COST TO 30 SEPTEMBER 2012 $6,761,882 $2,017,919 $4,903,076 $13,682,877 VARIANCE TO TOTAL APPROVED $179,569 $14,107 $538,700 $732,376 % VARIANCE TO TOTAL APPROVED -2.6 -0.7 -9.9 -5.1 % VARIANCE TO ORIGINAL BUDGET 0.9 1.9 1.9 1.4 ACTUAL COST TO 30 SEPTEMBER 2012 STAGE Development costs pre 01/09/06 $157,619 Consultants Costs to 30/06/07 $280,612 Car park $564,743 Gardens $27,740 1st Hole $316, 353 Consultant Costs - DA & Construction cert. $559,374 Course and Civil Design North Links $148,739 SUB TOTAL PRE-CONSTRUCTION $2,055,180 1 $6,761,882 2A $2,017,919 2B $4,903,076

SUB TOTAL CONSTRUCTION $13,682,877

TOTAL CONSTRUCTION $15,738,057

Less Grant received $-2,091,700

TOTAL EXPENDITURE $13,646,357

FROM PRELIMINARY ESTIMATES TO ACTUAL COSTS The original estimate of August 2006 of the cost of the course reconstruction (including the Car Park, but not (now) Hole 11) was $6.84 million. This was based on a two dimensional routing plan and used QS type rates and assumptions as to quantities of earth to be moved, green sizes etc. It did not include costs incurred in consultants’ fees etc prior to that date. The cost estimate was revised in September 2007 before any detailed design work was done to $8.9 million. This, while still largely comprised of QS style estimates, did include actual Car Park costs. MANLY GOLF COURSE REDEVELOPMENT COST INCREASE BY CATEGORY COMPARED TO PRE-DETAIL DESIGN AND APPROVAL BUDGET The reasons for cost increases from the early budgets to final expenditure are many but generally can be attributed to a few main influences. Foremost was the impact of the conditions of approval and the evolution of detailed designs not available in 2007. The 101 conditions of approval required increased consultant investigations and environmental, construction and landscape requirements. Detailed engineering design followed taking into account approval conditions. Tenders on the detailed construction designs prior to each stage were well above the 2007 estimates. Inflation over the 3-5 years from estimate to construction also contributed to the cost increases. The following is the increase in the general categories of the project from the

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September 2007 estimates and eventual cost. It should be noted that after tenders provided accurate assessment of the cost of each stage, that costs were kept to these budgets.

BROAD CATEGORIES OF PROJECT

Increase over 2007 Estimate

PRELIMINARIES. Little detail was available in the 2007 estimate to account for the following or the approval impacts on these items. Erosion and flooding control plans and measures, design changes caused by Council requirements, various site management plans, insurances, site setup, etc $900,000 LANDSCAPING. Significant increase in the design, area and density due to approval conditions. $250,000

DRAINAGE. Estimate prior to detailed design were not adequate. $300,000 IRRIGATION. Increased requirements due to conditions of part circle irrigation around waterways. Inadequate estimate due to lack of detailed design and increase in material costs. $900,000 EARTHWORKS. Factors that arose during construction due to weather and soil type. $250,000

TURF. Increased use of solid turf over stolons to secure erosion prone surfaces and reduce establishment time. $250,000

BOARDWALK AND BRIDGES. Requirements for piling and detailed design not accounted for in estimates. $300,000 PATHS. Area, cost per metre and site access difficulties not accounted for in 07 estimate $800,000

CREEK AMOURING. Treatment to protect creeks from erosion. $100,000

THE FOLLOWING ITEMS WERE NOT INCLUDED IN THE 2007 ESTIMATE

POND AND GROSS POLLUTANT TRAP. $864,000

WATER TANKS $192,000

ELECTRICITY SUBSTATION $130,000

PROJECT MANAGEMENT $100,000

TOTAL GENERAL CATEGORY COST IN EXCESS OF 2007 ESTIMATE $5,086,000 In summary the actual incurred costs over the original estimates were a combination of approval condition driven costs (e.g. contaminated fill, dewatering, potential acid sulphate soils, new power supply and landscaping (i.e. the riparian zones) and design enhancements such as additional cart paths, wider waterways and subsequent requirement for bridges and the board walk. Finally, as a Board, we were determined not to cut corners nor always take the cheapest option; we believed we had one chance to get this right and were determined to do so. FINANCING THE PROJECT Old Car Park – Balgowlah Road It was obvious from the outset that we would need to release some of the “value” in this asset to go towards the course reconstruction. Our initial effort was to seek a DA for an underground car park on this site for the Club (about 150 car spaces) and a home unit development above with 16 apartments. This was approved by Manly Council but subsequently challenged by two of the neighbours. This challenge ended up in Court after a lengthy delay, and the appeal was dismissed with costs awarded to the Club. The delay, combined with some changed market conditions, made the Club rethink this project, as the construction and development risk was assessed to have increased.

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At this time one of our members, Peter Rose, suggested we consider a long-term lease of the land to Universal Childcare, a childcare centre developer/operator. After some lengthy negotiations a deal was agreed and the Club received $4million for the 50-year site lease. This was approximately 80% of what the land was worth as a home unit site, so the Board felt this would be a much more acceptable result for our members with the Club retaining the land. This happened pre-GFC. It is almost certain that post-GFC we could not have secured such an advantageous (to the Club) outcome. 85 Balgowlah Road The Club owned a house next to the old car park, 85 Balgowlah Road, and this was sold for $830,000 to release funds for the course redevelopment. Properties on the Corner of Balgowlah Road and Suwarrow Street We commenced the actual construction work in October 2009. By the middle of 2010 it was evident that we would need to find additional sources of funds to complete the project. Considerable background work was done by the Board to explore all sources of funding such as Member debentures, increasing the levy etc. In the end we decided the sale of surplus property and 10-year memberships was the most equitable way forward to fund the gap. Hence the seeking and gaining of member approval at the 2010 AGM to deal with the excess property owned by the Club in our south-east corner. The Club owned two houses at 28 and 32 Balgowlah Road and two adjoining blocks of land at 15 & 17 Suwarrow Street. With the significant increase in the cost of the course reconstruction, the Board realised that we would have to sell, and/or develop this land to help fund the increased costs. Approaches were made to Manly Council to determine whether they would support a home unit development on this corner site. Council were supportive but pointed out that the two vacant lots would have to be rezoned from Open Space to Residential. Council was preparing a new Local Environment Plan for the whole of the Manly Shire, and was not really keen on processing a rezoning application so near to the advertising of the new LEP. However, we persuaded them of the Club’s need to achieve this rezoning to help finance the new course, and that we could not wait the 2-3 years before the new LEP was gazetted. During these negotiations No. 30 Balgowlah Road (the one property we did not own) came on to the market and we purchased the property for $850k, with finance from the CBA. At that stage we were confident that we would get the rezoning and that we would get a DA approval for 8 x 3 bedroom home units. However, Council planners expressed some concern about our proposal to have all cars enter the new home units via the access road at the rear of the Childcare centre. After reviewing the feasibility/profitability of the home unit project, we realised that we would be better off financially to just sell the three existing houses and sell the two rezoned blocks in Suwarrow Street. This avoided the development risk of the home unit project and meant that the funds would be returned to the Club earlier so that we could pay down our CBA loan earlier.

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MANLY GOLF CLUB COURSE REDEVELOPMENT SUMMARY 2006-2013 EXPENDITURE $M NOTES STAGE Pre construction 2.05 1 Stage 1 North Links 6.76 Stage 2A South Links 2.02 Stage 2B South Links 4.90

TOTAL CONSTRUCTION EXPENDITURE 15.73

SOURCES OF FUNDING Lease 87-95 Balgowlah Rd Fairlight 4.00 2 Sale 85 Balgowlah Rd Fairlight 0.84 Sale Land 15 & 17 Suwarrow St 1.74 3 Estimated Sale Houses 28 and 32-34 Balgowlah Rd 1.98 4 Ten Year memberships 0.73 5 Construction levies 2009/10-20012/13 1.21 6 Loan Reduction Levy 2012/13 0.26 6 Grant Received 2.09

TOTAL SOURCES OF FUNDING 12.85

CONSTRUCTION EXPENDITURE SHORTFALL -2.88 TRADING SHORTFALL -2.12 10 ESTIMATED DEBT -5.00 11

LOANS CBA loan pre construction 1.31 7 CBA Bank Bill Facility 5.00 8 Pastlink Properties Ltd 1.80 9 CBA Loan 30 Balgowlah Rd 0.90 4

Total Loans 9.01 LESS LOANS REPAID CBA loan pre construction -1.31 7 Pastlink Properties Ltd -1.80 9 CBA Loan 30 Balgowlah Rd -0.90 4

Total Loans Repaid -4.01

ESTIMATED DEBT 5.00 11

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NOTES

The Course Redevelopment Summary is prepared on the basis of actual construction expenses and current and future realisations as detailed in the notes. 1. Pre Construction expenses $ Development costs pre 01/09/06 157,619 Consultants Costs to 30/06/07 280,612 Carpark 564,743 Gardens 27,740 1st Hole 316,353 Consultant Costs - DA & Construction cert. 559,374 Course and Civil Design North Links 148,739 TOTAL PRELIMINARY COSTS PRE CONSTRUCTION 2,055,180 2. Lease of 87-94 Balgowlah Rd from 2007-2057 4,000,000 3. Contracts were exchanged for the sale of 15 and 17 Suwarrow St in September. Settlement is scheduled for December 2012. 4. 30 Balgowlah Rd has now been sold. 28 and 32-34 Balgowlah Rd will be put up for sale by the end of 2012. The 30 Balgowlah Rd loan will be extinguished by the sale of that property. 5. A total of $733,045 7 day and 5 day 10 year memberships have been subscribed. 6. Construction levies received or to be received are: Construction Levy 2009/10 280,000 Construction Levy 2010/11 407,000 Construction Levy 2011/12 260,000 Estimated Construction Levy 2012/13 264,000

1,211,000 The current Board's intention is that the Construction Levy will cease after 5 years (the final year being 2013/14). This and other levies will be reviewed by the incoming Boards in light of the Club’s trading performance and ongoing working capital needs. Our current repayment arrangements with the Bank are to amortise the estimated debt over 18 years. It has been structured in this way in an endeavour to equitably share the cost with both current and future members. The Club’s ability to repay the estimated debt over a shorter timeframe will need to be carefully balanced against the year-in year-out cost of maintaining and improving member services. 7. $1,310,000 is the bank loan balance remaining after the renovation of the Clubhouse. It has since been converted to CBA Bank Bill Facility. 8. $6,310,000 is the bank bill facility from CBA. After the expected realisation of properties at Suwarrow St and Balgowlah Road it is expected to be reduced to $5,000,000.

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9. $1,800,000 is a loan from former director RN Smith's company Pastlink Properties Ltd. It is secured on 28 and 32-34 Balgowlah Road. It is expected to be extinguished upon settlement of sale of the properties at Suwarrow St and Balgowlah Rd. 10. Interest, trading losses and other capital expenditure during the construction period. 11. Our current bank arrangement is to repay the debt over 18 years and our cash flow projections indicate this is achievable. Rebuilding Manly Golf course has taken a lot of effort, people, money and nearly 14 years. Time will tell but for those closely involved (and we hope most, if not all, Members) the final result is well worth the effort involved. For and on behalf of the Board

K J W Munro President 5 October 2012