new zealand golf annual report and statement of accounts zealand golf annual report 2014.pdf · new...

New Zealand Golf2014 Annual Report and Financial Statements

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2014NEW ZEALAND GOLF

Annual Report and Statement of Accounts

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VALUE OF GOLFThe game of golf provides

unique and lifelong enrichment.

THANKS

CONTENTS

Tolan Henderson - Onewhero Golf Club

Office Bearers ..............................................................................................................................................................................Annual General Meeting ......................................................................................................................................................Hall of Fame .............................................................................................................................................................................President’s Report ...................................................................................................................................................................Chairman’s Report ..................................................................................................................................................................2014 District Membership .................................................................................................................................................High Performance ................................................................................................................................................................... 2014 New Zealand Golf Tournament Winners ................................................................................................ 2014 International Amateur Success ............................................................................................................. 2014 International Professional Success ....................................................................................................... 2014 Major Championship Performances .................................... .................................................................. 2014 New Zealand Amateur Team Performances .....................................................................................Auditor’s Report .......................................................................................................................................................................Financial Statements ........................................................................................................................................................... Statement of Financial Performance ............................................................................................................. Statement of Movements in Equity ................................................................................................................. Statement of Financial Position ....................................................................................................................... Statement of Cashflow .......................................................................................................................................Notes to the Financial Statements ................................................................................................................................... 1. Statement of Accounting Policies .............................................................................................................. 2. Affiliation Fees .................................................................................................................................................. 3. Interest Revenue .............................................................................................................................................. 4. New Zealand Men’s Open ............................................................................................................................. 5. Sundry Income ................................................................................................................................................. 6. Net Surplus / (Deficit) for the Year .............................................................................................................. 7. New Zealand Golf Services ........................................................................................................................... 8. Elite Development and Events ..................................................................................................................... 9. Golf Development ............................................................................................................................................ 10. Junior Golf ....................................................................................................................................................... 11. New Zealand Golf Mutual Assistance Plan ............................................................................................... 12. Cash and Bank Balances ............................................................................................................................. 13. Investments ..................................................................................................................................................... 14. Trade and Other Receivables ..................................................................................................................... 15. Inventories ........................................................................................................................................................ 16. Loan Receivable ............................................................................................................................................. 17. Trade and Other Payables ........................................................................................................................... 18. Provisions ......................................................................................................................................................... 19. Employee Benefits Payable ........................................................................................................................ 20. Sir Bob Charles Scholarship ....................................................................................................................... 21. Property, Plant and Equipment .................................................................................................................. 22. Intangible Assets ............................................................................................................................................ 23. Investment in Associate .............................................................................................................................. 24. Commitments and Contingencies ............................................................................................................. 25. Related Party Transactions .......................................................................................................................... 26. Going Concern ............................................................................................................................................... 27. Events After Reporting Date ......................................................................................................................... 28. Net Cash Flow from Operating Activities ...............................................................................................

We are extremely lucky and privileged to have some of the most dedicated people working and volunteering within the golf sector throughout New Zealand. Our District Associations, golf clubs and industry partners continue to tackle the multitude of challenges facing the game and do so with an abundance of energy and passion.

We understand that the health of the game is reliant on the thousands of great employees, board members, committee members and volunteers who work tirelessly to ensure that the game of golf is supported well and achieves growth.

The team at New Zealand Golf would like to sincerely thank all of the people who make up the golf community.

We know how much work and effort goes into creating a quality golf experience that will not only keep existing golfers coming back but will attract new people into the game.

We would also like to offer a special thank you to the friends and families of everyone who works within the game because we know the level of commitment and sacrifice that is needed to ensure the future of golf is a bright one.

Thank you all for another great year and we look forward to working alongside you in 2015.

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ANNUAL GENERAL MEETINGNotice is hereby given that the 2015 Annual General Meeting of New Zealand Golf Inc will be held at the Quality Hotel, 20 Gladstone Road, Parnell, Auckland on Wednesday 29 April 2015 commencing at 9:00am.

1. Welcome and Apologies.2. Confirmation of Minutes of New Zealand

Golf Incorporated Annual General Meeting 23 April 2014.

3. Matters arising from New Zealand Golf Inc Annual General Meeting 23 April 2014.

4. 2014 Annual Report.

Dean Murphy

Patsy Hankins

Mike AlexanderAlison Bojesen-Trepka Roger BrennandSue Bunt, MNZM Betty Cameron Flora CattoSir Bob Charles, ONZ, KNZM, CBE Robin DaileyBarry ForrestRt Hon Sir Tom Gault, KNZM Noreen HamiltonPatsy Hankins Philip Hassall Peter JoyceTrevor Malloch, QSMAlex MercerFrank Nobilo, CNZM Joan PuckeyPeg Sargent Tim Treacy Goldie Wardell Jean Whitehead Neil Woodbury

Chief Executive

IGF Women’s Chairman

Life Members

Sir Bob Charles ONZ, KNZM, CBE (27 November 2010)

Michael Campbell ONZM (27 November 2010)

HALL OF FAME

5. 2014 Financial Report.6. Adoption of New Zealand Golf Annual

Report.7. Appointment of Auditor.8. Confirmation of Levies for 2015.9. General Business.

Oliver Hollis (25 March 2012)

Stuart Jones (25 March 2012)

Rt Hon Sir Tom Gault, KNZM

Philip Hassall

Paul Fyfe (Chairman)Michael Smith (Deputy Chairman)Murray Ward (Deputy Chairman)Eileen BateupMike HowardAdrienne Greenwood Brent Robinson (January – April 2014)Anna Shires

Patron

President

Board of Directors

OFFICE BEARERSVolunteers at

Nelson Golf ClubNew Zealand Amateur

Championship


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PRESIDENT’S REPORTNew Zealand Golf PresidentPhilip Hassall

New Zealand Golf will remember 2014 as a year when our new strategic direction came to life. After acknowledging for some time there was a need to show more support to the grass roots of the game, I’m pleased to report that we have made significant progress in this area during 2014.

As a first and important step, this year we reached agreement with our member District Associations on what we called the “Way Forward Guiding Principles” document.

In these challenging times it is important that we work together with our District Associations to improve the health of our sport. The “Way Forward Guiding Principles” will help us navigate the path ahead in a united manner. I’m pleased to note, that after some initial push back, all District Associations are full supporters of the new strategic direction the organisation is taking with many adopting it as their own strategy.

In another significant step, the organisation enhanced relationships and progressed formal agreements with nine golfing organisations to align and support New Zealand Golf’s strategic outcomes. These included the PGA, First Tee, SNAG, New Zealand Maori Golf Association,

Eagles, Nomads, Golf Managers Association, Golf Course Superintendents Association and Cheeky9.

We do acknowledge the year in review has again been challenging for many in the golfing sector. The Board and management have worked tirelessly throughout 2014 and their efforts are acknowledged with many thanks.

The core strategies of New Zealand Golf are to grow and support the game and we made significant progress in these areas in 2014.

Under these strategic priorities many new initiatives were established in 2013 to address some of the issues we face. We built depth to our strategic plan by publishing the world class Community Golf Plan; a document that articulates how we can join together as a golfing sector to grow golf in the grass roots communities around the country. We continued the LOVE Golf campaign to improve the way New Zealanders think about the game of golf and drive participation and we launched an initiative to attract casual golfers to become part of the golfing family.

On the playing side of the game, we started the year with a wonderful showcase of women’s

golf with the New Zealand Women’s Open at Clearwater. This was followed by running the world’s most unique New Zealand Open in Queenstown, over two courses and in a pro-am format which was a real success. Our thanks to Michael Hill Tournaments Limited for their tireless work to bring the Men’s Open tournament to life. It is greatly appreciated.The 2015 New Zealand Men’s Open will be further developed with increased prize money and TV coverage.

Lydia Ko was again the standout on the international stage as she climbed the world rankings and continued to establish herself as a world class performer. Three further LPGA titles in addition to winning the season long points race were highlights in a year of simply stunning achievements.

From a local New Zealand perspective, perhaps the biggest achievement for Lydia was being awarded the supreme Halberg Award in February. This acknowledged her as New Zealand’s finest sportsperson in 2013 – a stunning achievement for a real golfing superstar.

In the men’s pro ranks there was great success to toast as well. Both Danny Lee and Tim Wilkinson competed well on the PGA Tour and will be joined by Steve Alker in 2015. It will be wonderful to follow these three New Zealanders on the world’s biggest tour.

In the amateur ranks our players again competed well in Australia and further afield however our results in Japan at the World Amateur Team Championship were short of our expectations.

We acknowledge the Pupuke Golf Club and the Port Chalmers Golf Club which celebrated their centenaries in 2014. We congratulate these clubs for reaching this marvellous milestone and acknowledge their contribution to golf and the community over the past 100 years.

Sadly, life member Barry Forrest passed away in April 2014. Barry was a long-time servant of the game and will be missed by the golfing community of Timaru where he made such a big contribution. We extend our sympathy to the Forrest family and all other members of the golfing family who lost loved ones in 2014.

I would also like to acknowledge and thank New Zealand Golf Chairman Paul Fyfe for his leadership of our organisation in the past 12 months and the dedication and achievements of the Board. Making progress is never easy and

change is not always embraced, however when this group looks back on the achievements of the organisation over the past 12 months, it should feel very pleased for the advancements it has made.

Finally I would like to offer my sincere thanks and appreciation to the membership for allowing me to be President over this past year. The role of President is one that is always a privilege and something that I never take for granted.

I look forward to a successful 2015 where we can continue to work together to grow and support the game we love.

Philip HassallPresidentNew Zealand Golf Incorporated


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CHAIRMAN’S REPORTNew Zealand Golf ChairmanPaul Fyfe

On the Course

1. Lydia Ko is the youngest ever winner of the LPGA Rookie of the Year Award – (also Halberg Award winner in 2014 (Supreme Award and Sportswoman of the Year)).

2. Mark Brown shoots 59 at the Tauranga Golf Club – round two of the Carrus Open – receives global media attention.

3. Tae Koh wins the Australian Amateur Championship – the first New Zealander in 22 years since Michael Campbell in 1992.

4. Junior amateur titles – Alanna Campbell and Bailey Smith begin the year in style in Australia.

5. Danny Lee, Steven Alker and Tim Wilkinson on the PGA Tour in 2014/15 – best Kiwi presence in 11 years, Lee finishes third in Mexico.

6. Ryan Fox wins the Western Australian Open on the PGA Tour of Australasia, Daniel Pearce wins the Vanuatu Open.

7. Steven Alker wins the Cleveland Open on the Web.Com Tour in an 11-hole playoff and secures his card for the PGA Tour.

8. Great local champions on the Charles Tour (Doug Holloway, Joshua Geary, Ryan Fox, Mark Brown, Ryan Chisnall) National events (Joshua Munn, Luke Toomey and Chantelle Cassidy).

9. James Beale comes of age to win the Canadian Amateur and the Pacific Northwest Amateur.

Off the Course

1. Implementation of a comprehensive strategic plan for the future that outlines the twin priorities of growing and supporting the game.

2. Establishment of a world-class Community Golf Plan that was acknowledged by the R&A as world leading. Their support of this project amounts to $450,000 over three years.

Annual ReviewOn behalf of the Board it is my pleasure to report on the activities of New Zealand Golf Inc. during 2014. Our progress in 2014 has been very pleasing; especially as the golfing sector is faced with so many challenges.

7. Continued progress with the PGA of New Zealand to align our organisations in a closer manner in the future.

8. Enhanced relationships and formal agreements with 7 golfing organisations to align and support New Zealand Golf’s Strategic outcomes. These included the PGA, First Tee, SNAG, New Zealand Maori Golf Association, Golf Managers Association, Golf Course Superintendents Association and Cheeky 9.

9. New Zealand Golf Handicap System review process completed and changes implemented.

3. Success of the LOVE Golf Campaign to improve the perception of golf nationwide.

4. Lydia Ko goes pro announcement wins the Sport and Recreation Award for Innovative Excellence and placed third in TV commercial of the Year.

5. Launch of the Casual Golf Programme to attract more casual golfers into the game.

6. The world’s most unique Open championship was established in Queenstown, over two courses and in a pro-am format which was a real success. This followed the hugely successful staging of the ISPS Handa New Zealand Women’s Open Championship in Christchurch.

During 2014 we spent a considerable amount of time working on the implementation of our new strategic plan. This presented a new focus for the organisation, however I am pleased to report that this is now well established and we are already seeing the benefits of our new approach albeit there is much more work to do.

Strategic Direction

Growing the game of golf1. Increased Participation.2. Increased new club membership and

existing member retention.3. An increased profile and positive

perception of the game.4. More kiwis winning on the world stage.

Supporting the game of golf1. Improved club capability and financial

health.2. An increased number of career and

2014 Achievements

STRATEGIC OBJECTIVES

Growing the Game of Golf

1. Increased participation.2. Increased new club membership and

existing member retention.

3. An increased profile and positive perception of the game.

4. More kiwis winning on the world stage.

Supporting the Game of Golf

1. Improved club capability & financial health.2. An increased number of career & education

opportunities for a growing number of PGA professionals, golf industry trained professionals and volunteers.

3. A redeveloped administration support structure that is appropriately meeting the needs of the game.

4. An enhanced history, legacy & tradition of the game.

DESIRED OUTCOMES

1. Strong golf clubs & healthy golf communities;

2. Competitive success at all levels;

3. An industry that offers well remunerated careers & is recognised for its economic contribution.

VISIONof golf

VALUEof golf

STRATEGICpriorities

MISSIONOur

To grow the love of golf.

Golf is NZ’sfavourite pastime.

The game of golf provides

unique & lifelong

enrichment.

Growing the game of golf.

Supporting the game of golf.


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2014 Financial PerformanceFrom a financial perspective, the business faced another difficult year. Our targeted profit for the year was $77,000 and while the business achieved an operating surplus of $47,552 prior to depreciation and amortisation, after accounting for these costs the deficit sits at $51,190. Securing appropriate levels of sustainable revenue remains the core challenge however this is set against a background of declining traditional membership levies, reducing charitable trust income and a very tough commercial sponsorship market. The fact that our affiliation levies have remained at the same rate for nine years now is a matter we may well have to address in the coming year. Currently, 47% of our income is derived from affiliation levies leaving 53% to be raised by the business. As reported last year, the demand for delivery of services increases each year and we will need to find new ways to increase our revenue if we are to deliver on the ambitions set out in our strategic plan.

Administration StructureIn association with our member District Associations, the Board concluded a major project to review the national administration for golf that had the broad goals of establishing:A unified and common strategy among all administration bodies working in golf;Greater efficiencies and collaboration; andIncreased delivery of services to grass roots golf clubs.

Thanks to the help and leadership of a subcommittee led by Max Walker of Canterbury Golf, I am pleased to report that we reached agreement on a range of guiding principles for the future of our joint administration of the sport in New Zealand. A critical part of these guiding principles is the need for a close working relationship between New Zealand Golf, our District Associations and our clubs. This is an important focus moving forward.

From a national governance perspective, the alignment process with the PGA of New Zealand continues to be worked on diligently by both parties. We will determine the most appropriate way forward with the support of our District Associations in the coming financial year.

Industry PartnershipsIn addition to our member District Associations, New Zealand Golf continues to work closely with our friends across the golfing sector. I’m pleased to report we have very close relationships with the PGA of New Zealand,

the Golf Managers Association, SNAG, The First Tee, the New Zealand Golf Course Superintendents Association and the New Zealand Maori Golf Association to name just a few. These organisations all have agreements with New Zealand Golf to work towards the goals as set out in our strategic plan and I would like to acknowledge the work they have done throughout the year. A key future work stream is to engage with the regional sports trusts around the country to assist the grass roots growth and support of our game. We look forward to continuing our work with all of these organisations in 2015.

International RelationshipsAn important part of our role as leaders of the game in New Zealand is to foster beneficial relationships with international golfing organisations. We take our role as part of the worldwide community of golf seriously and feel that increased collaboration and sharing of ideas with our international peers provides benefits for our game here in New Zealand. Our relationships remain very close with the R&A, APGC, IGF, Augusta National and Golf Australia in particular and we look forward to further collaboration with these bodies in the future.

In particular I would like to acknowledge the R&A for their very generous support of New Zealand Golf’s new grass roots initiatives. The investment received from the R&A will assist us greatly as we strive to grow and support the game in New Zealand.

New Initiatives - Growing & Supporting the GameFollowing the publishing of our new strategic plan, this year we have launched a number of new initiatives to bring this plan to life. Under the twin priorities of growing and supporting the game, the new initiatives launched are also a reflection of our increased allocation of budget to the community and grass roots segments of the game.

We continued the LOVE Golf campaign to improve the way New Zealanders think about the game of golf and drive participation and we launched an initiative to register casual golfers on our national database. The later initiative is particularly important as we strive to connect with the growing casual segment of the market and encourage them to become part of the golfing family.

From a knowledge perspective, we engaged in some key pieces of research this year which

provided very valuable information on the perception of golf and also the nature of the volunteer and remunerated workforce across the golf sector. This information will be valuable for us to assess on a yearly basis to understand the progress we are making.

To deliver increased services to the grass roots of the game, this year we established two new roles in the Community Golf team. In partnership with District Associations, these roles provide a direct service link to golf clubs and are charged with helping clubs improve their planning processes business management. We are extremely encouraged by the progress these appointments have made in over nine months in 2014. We look forward to seeing their impact grow in 2015.

To build on these themes, a national educational seminar series was held throughout the country that provided business learning opportunities for club representatives. This is an area of work we will look to expand in 2015 as the education framework we have been working on comes to life through the Golf Managers Association and the Diploma of Golf Management through Auckland Business College.

Perhaps the biggest achievement this year however has been adding depth to our strategic plan by publishing the world class Community Golf Plan; a document that articulates how we can join together as a golfing sector to grow golf in the grass roots communities around the country. This plan has been incredibly well received and endorsed from all parts of the sector. The R&A has additionally identified this piece of work as world leading.

Golf OperationsClub MembershipThis year we have again experienced a membership decline in line with previous years and consistent with worldwide trends. Given the decline remains steady at around 2% per annum, we do need to accept that the behaviours and preferences of participants are changing. The majority of golf participants now engage with the game outside of the club membership structure and although this provides challenges for us, we must embrace these participants they are the future of our game. This is a key priority for the business moving forward.

National Handicapping SystemIn late 2013 the organisation embarked on an extensive handicap system review process. Over 240 Golf Clubs and nearly 10,000 members replied to the survey and the proposed

changes were subsequently introduced in 2014. Our thanks go to DotGolf who, as our national service provider and partner delivers an excellent service to the game of golf. Alan McCracken and his team provide New Zealand Golf with a constantly evolving product that is world class and the envy of many international golfing organisations.

National ChampionshipsNational championships remain an integral part of our operations and we were pleased to present 28 national events throughout 2014. Once again in 2014 the number of entries into national events increased.

New Zealand Golf runs a wide variety of national championships which also include teams championships the TORO Interprovincials and Men’s and Women’s Masters. We acknowledge and thank Denise Langdon and PaR NZ who run a range of New Zealand Golf participation events. These events are popular tournaments on the New Zealand Golf calendar and well attended every year.

The Charles Tour continues to grow in significance and in 2014 we welcomed another host venue in the Akarana Golf Club. While the weather hampered the first Akarana Open reducing the championship to 54 holes, we are looking forward to a longstanding relationship with the club.

Hosting a national championship is a large commitment for a club and its members and we give our thanks to those clubs which have generously provided their courses as host venues. We also give our sincere thanks to those many volunteers who gave their valuable time to ensure our championships ran efficiently.

High PerformanceAs New Zealand Golf’s focus has broadened in recent times into the Community Golf area, the budget for our High Performance programmes has reduced significantly. The national teams and squads that represent New Zealand abroad, and of course those players who move through to the professional ranks to contend on the world stage, are a great source of pride and inspiration for the players who aspire to follow in their footsteps and for the weekend warrior alike.

The role and relevance of our High Performance programme continues in these changing times as High Performance remains the face of participation. To truly get a sense of this we need only to reflect back to the Rugby World Cup of 2011 and more recently the Cricket World


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Cup. Success at the highest level supports the growth of the game, sponsorship opportunities within the game and of course player development itself.

The highlights of 2014 continue to come from one Lydia Ko. Her performances continue to belie her young age as she goes from strength to strength with her year ending win and capturing of the race to CME Globe signalling what is still to come.

On the amateur scene 2014 was a ‘worlds year’ with this iteration of the men’s and women’s event being held in Japan. The host club for both the Eisenhower Trophy and Espirito Santo Trophy was the picturesque Karuizawa Resort just outside of Tokyo. The depth of talent of both the men’s and women’s events was evident through the magnificent performances of the winning teams and those who challenged them. Unfortunately the New Zealand women’s team fell off the pace early and struggled to get back into the competition, finishing 34th.

The men’s team performance of 15 under par would have once upon a time seen them contend for the title or at least a place inside the top 10. No longer, the incredible 38 under par total of the USA secured them the trophy and left the New Zealand team fighting for a top 20 placing, ultimately just missing out and tying for 22nd. The international amateur scene has certainly become highly competitive with most countries developing their own systems to support these young players as they progress their talents. The most noticeable attribute of the winning teams is their fearless approach to their play coupled with the skill to execute the shots required, something our own programme will continue to strive to instil.

While the feats of Lydia Ko have been well published and her many wins celebrated, 2014 also saw Steven Alker, Josh Geary, Gareth Paterson, Ryan Fox and Simon Owen win professional titles on the professional stage. Danny Lee and Tim Wilkinson retained their PGA Tour cards in 2014 for the 2015 season while Steve Alker overcame his 2013 near miss to gain his 2015 PGA Tour Card, a fantastic achievement by these three players to reach the big show.

James Beale’s two international victories warrant an individual mention as this young amateur player will now have the opportunity to play a PGA Tour event in 2015. His win in the Pacific Northwest Amateur in July firmly signalled his abilities but his win at the Canadian Amateur in August cemented them. He rose

to be the number one ranked New Zealand amateur player on the World Amateur Golf Rankings in 2014 and now looks forward to the challenge of playing the 2015 Canadian Open, July 20-26th at the Glen Abbey Golf Club.

Most encouragingly was the three young players in 2014 who stole the show in Australia capturing three separate Australian junior titles. Bailey Smith, Alanna Campbell and Henry Spring all showed the emerging junior talent throughout New Zealand that anything is possible with some hard work, determination and self-belief.

To further refine our programme, a review of High Performance activity will be undertaken in 2015. The goal of this process is to further improve the philosophies and practices that make up our programme. We will compare ourselves with leading international countries and seek the assistance and expertise with High Performance Sport New Zealand to review the best way forward for our programmes. We do wish to ensure this aspect of our business continues to operate in a manner that makes best use of the resources we have available and achieves results we can all be proud of.

New Zealand Golf would like to offer our thanks to Srixon, Cobra Puma Golf and Golf Distributors as key supporters of the High Performance programme.

Our sincere thanks also go to our men’s and women’s national selectors Anne Seed and Lisa Herbert, John Spraggs, Michael Barltrop and Rod Patterson. We also thank those who have volunteered their time to manage teams this year including Jay Carter, Reon Sayer, Aaron Walsh, Brent Paterson, Karen de Lautour and Libby Steele.

ISPS Handa New Zealand Women’s Open hosted by ChristchurchThe stunning Clearwater Golf Club again played host to the ISPS Handa New Zealand Women’s Open. With co-sanctioning again with the Ladies European Tour and the Australasian Ladies Professional Golf Tour, a stellar field was assembled which in turn attracted huge galleries of spectators with many thousands watching our own Lydia Ko.

Our thanks go to the Christchurch City Council and our title sponsor ISPS Handa. The event would not run as well without their generous support.

A special mention and thanks also to Bob Tuohy and his team at TA Golf. Bob is a close friend of

Espirito Santo TeamMunchin Keh,

Julianne Alvarez & Zoe Brake

Eisenhower TeamTae Koh,

Joshua Munn & Vaughn McCall


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New Zealand Golf and does an exceptional job for us in staging our Women’s Open.

New Zealand Open ChampionshipIn partnership with Michael Hill Tournaments Limited, we were delighted this year to return to Queenstown and host the world’s most unique Open Championship, played with a concurrent Pro-Am format and over two fantastic venues (The Hills and Millbrook). The production and staging of the event was world class and of significant importance, the financial risk and operational workload is now removed from New Zealand Golf.

Our sincere thanks to the MHTL team led by John Hart and Michael Glading. Our Open Championship could not be in better hands and we thank you for the tireless enthusiasm and passion you continue to bring to the event.

New Zealand Golf Board & ManagementThe Board of New Zealand Golf is a voluntary Board and I am grateful for the time and expertise they provide to New Zealand Golf at Board and subcommittee level. Each member of the Board is passionate about the game of golf and brings a great variety of knowledge and experience to the governance of our sport.

During 2014 we welcomed Anna Shires and Mike Howard to the Board however regrettably, Brent Robinson left the Board after two years in order to focus on new employment opportunities. Brent’s contribution to the Board as a Director was outstanding and we wish him well in his future endeavours.

Board SubcommitteesThe Board has a number of subcommittees and I wish to record my thanks for the Directors who have added these extra responsibilities to their Director duties:

• Open Championships: Michael Smith (Chair), Paul Fyfe, Mike Howard

• Audit and Risk: Anna Shires (Chair), Michael Smith, Adrienne Greenwood, Philip Hassall

• High Performance: Murray Ward (Chair), Eileen Bateup, Adrienne Greenwood

• PGA Alignment Project: Philip Hassall, Murray Ward, Paul Fyfe, Michael Smith

• DotGolf Directors: Murray Ward (Chair), Eileen Bateup

The Board Chair and CEO are ex officio on all Board subcommittees.

International Appointments:

• International Golf Federation Administration Women’s Chair: Patsy Hankins

• Asia Pacific Golf Confederation Executive Committee member: Philip Hassall

• R&A Rules and Amateur Status Committee: Dave Mangan

StaffThe Board extends its considerable appreciation and thanks to the New Zealand Golf staff, led by Chief Executive Dean Murphy. The staff of New Zealand Golf is a relatively small team considering the scope of the work before them and we are very fortunate to have the services of such fine and dedicated people for which we are grateful.

Looking ForwardWhile New Zealand Golf has made good progress in 2014 there remains much work to do. Our new strategic direction provides the road map forward however we are conscious a great deal of dedicated hard work will need to be undertaken in order to achieve the targets we have set ourselves. Improving the health of our sport is vital to us all and there is much work we need to do in the future if we are to build on our success in this area.

Golf is a sport that has a proud history and fine traditions. While remaining conscious of this legacy, we do need to look ahead differently if we are to succeed. The world outside is changing at a rapid pace and we must ensure that the rate of change within the golf sector keeps pace. We have a wonderful network of clubs and assets around the country and it is our responsibility to do our best to safeguard the future of the sport in New Zealand.

As a final note, we offer our thanks to the community of golf for their contribution to the game. Most people who contribute to the game of golf in our District Associations and Clubs do so on a voluntary basis and for this we offer our sincere thanks and appreciation.

Paul FyfeChairmanNew Zealand Golf Incorporated

Omaha Beach Golf Club


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Taupo Golf Club

2014 DISTRICT MEMBERSHIP

District

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NORTH ISLAND

AUCKLAND 26 8,953 198 1,229 69 547 200 11,196 2,311 545 330 22 107 7 3,322 14,518

BAY OF PLENTY 27 4,703 349 281 46 404 247 6,030 2,054 900 250 33 116 144 3,497 9,527

HAWKES BAY POVERTY BAY WOMEN

17 2,354 131 96 38 144 182 2,945 911 201 47 25 27 45 1,256 4,201

MANAWATU/WANGANUI

22 3,610 306 158 73 263 150 4,560 735 349 56 31 55 24 1,250 5,810

NORTH HARBOUR

22 6,675 237 356 40 410 73 7,791 1,464 517 105 16 94 29 2,225 10,016

NORTHLAND 22 3,534 209 223 50 294 84 4,394 987 328 68 21 61 37 1,502 5,896

POVERTY BAY/ EAST COAST

22 613 41 35 12 59 20 780 - - - - - - - 780

TARANAKI 22 2,358 135 157 69 318 118 3,155 563 303 26 29 54 13 988 4,143

WAIKATO 22 6,589 290 1,091 111 538 261 8,880 1,155 431 230 37 72 29 1,954 10,834

WELLINGTON 22 7,490 311 521 132 526 453 9,433 1,919 453 133 49 100 63 2,717 12,150

Total North Island

224 46,879 2,207 4,147 640 3,503 1,788 59,164 12,099 4,027 1,245 263 686 391 18,711 77,875

SOUTH ISLAND

AORANGI SOUTH CANTERBURY

20 2,264 96 112 39 130 47 2,688 920 268 42 25 27 16 1,298 3,986

CANTERBURY 38 7,515 223 420 100 496 286 9,040 1,735 473 102 42 90 85 2,527 11,567

OTAGO 48 5,737 114 605 103 495 78 7,132 1,731 328 156 52 75 33 2,375 9,507

SOUTHLAND 25 1,870 33 153 58 97 78 2,289 357 72 41 26 16 18 530 2,819

TASMAN 25 2,559 193 137 56 188 103 3,236 810 215 43 39 33 29 1,169 4,405

Total South Island

156 19,945 659 1,427 356 1,406 592 24,385 5,553 1,356 384 184 241 181 7,899 32,284

2014 TOTAL 389 66,824 2,866 5,574 996 4,909 2,380 83,549 17,652 5,383 1,629 447 927 572 26,610 110,159

2013 Total 389 68,548 2,963 4,750 1,001 5,393 2,462 85,117 18,163 5,688 1,393 452 849 567 27,112 112,229

2012 Total 389 70,549 3,026 4,882 1,014 5,880 2,383 87,734 19,066 5,769 1,458 466 918 525 28,202 115,936

2011 Total 393 72,197 2,997 3,925 1,041 6,171 2,247 88,578 19,894 5,930 1,242 55 993 505 29,019 117,597

2010 Total 397 75,039 3,240 3,561 1,083 6,921 2,634 92,478 21,122 6,450 1,141 486 974 569 30,742 123,220

2009 Total 393 75,092 2,931 3,303 978 7,146 2,045 91,495 21,927 6,522 1,109 384 983 323 31,248 122,743

Change 2013 v 2014

- 1,724 - 97 824 - 5 - 484 - 82 - 1,568 - 511 - 305 236 - 5 78 5 - 502 - 2,070

Percentage Change 2013 v 2014

- 2.5% - 3.3% 17.3% - 0.5% - 9% - 3.3% - 1.8% - 2.8% - 5.4% 16.9% - 1.1% -9.2% 0.9% - 1.9% - 1.84%

Notes to 2014 District Membership:• Numbers for 2014 have been extracted from the DotGolf system and classifications are correct

at the time of data extracted (March 01, 2015).

• In some districts, the Men’s and Women’s sections of golf clubs belong to different District Associations.

Since 2006 the Women’s District membership figures have been incorrectly recorded under the previous New Zealand Golf Men’s District Associations, instead of under the previous Women’s Golf New Zealand District Association.

The above Women’s District figures for 2014 are correctly recorded for each District Association.

• Previously recorded membership totals for 2012 and 2013 exclude Life Members. Previously recorded membership totals for 2009, 2010 and 2011 excluded secondary members.

Membership totals for 2014 and all previous years have been corrected and include all membership categories.


1918

EVENT DATE & VENUE WINNER

NORTH ISLAND UNDER 19 CHAMPIONSHIP

17 – 19 January

Venue: Hamilton Golf Club

Charlie Hillier (Te Puke Golf Club)

Jocelynn Katu (Aviation Golf Club)

ISPS HANDA NEW ZEALAND WOMEN’S OPEN

31 January – 2 February

Venue: Clearwater Golf ClubMi Hyang Lee (Korea)

NEW ZEALAND MEN’S FOURSOMES CHAMPIONSHIPS

7 February

Venue: Mt Maunganui Golf Club

Compton Pikari (Te Awamutu Golf Club)

Bailey Smith (Mt Maunganui Golf Club)

LAWNMASTER CLASSIC CHARLES TOUR

12 – 15 February

Venue: Manawatu Golf Club

Doug Holloway

Munchin Keh (Titirangi Golf Club)

NEW ZEALAND MEN’S SENIOR CHAMPIONSHIP

13 – 15 February

Venue: Manawatu Golf ClubMichael Barltrop (Royal Auckland Golf Club)

SOUTH ISLAND STROKE PLAY CHAMPIONSHIP

22 – 23 February

Venue: St Clair Golf Club

Ryan Chisnall (Greenacres Golf Club)

Brooke Hamilton (Maungakiekie Golf Club)

NEW ZEALAND WOMEN’S SENIOR MATCH PLAY

25 - 27 February

Venue: Springfield Golf ClubBrigit Holford (The Grange Golf Club)

NEW ZEALAND MEN’S OPEN27 February – 2 March

Venue: The Hills Golf Club & Millbrook Golf ClubDimitri Papadatos (Australia)

NEW ZEALAND STROKE PLAY CHAMPIONSHIP

20 – 23 March

Venue: Hastings Golf Club

Luke Toomey (Lochiel Golf Club)

Katsu Minami (Japan)

NEW ZEALAND WOMEN’S AUTUMN FOURSOMES

25 – 28 March

Venue: Cromwell Golf Club

Karen Devlin & Patricia Hollows

(North Otago Golf Club)

WOMEN’S MASTERS6 – 8 April

Venue: Springfield Golf ClubSouthland

RECREATIONAL SERVICES AKARANA OPEN - CHARLES TOUR

17 – 20 April

Venue: Akarana Golf Club

Josh Geary

Caroline Bon

COBRA PUMA NEW ZEALAND AMATEUR CHAMPIONSHIP

23 – 27 April

Venue: Nelson Golf Club

Josh Munn (Manawatu Golf Club)

Chantelle Cassidy (Cambridge Golf Club)

SOUTH ISLAND UNDER 19 CHAMPIONSHIP

30 April – 2 May

Venue: Muriwai Golf Club

Ha Bin Su (Waitemata Golf Club)

Brooke Hamilton (Maungakiekie Golf Club)

ASK METRO MURIWAI OPEN CHARLES TOUR

1 - 4 May

Venue: Muriwai Golf Club

Ryan Fox

Munchin Keh (Titirangi Golf Club)

NEW ZEALAND WOMEN’S FOURSOMES5 June

Venue: Matamata Golf Club


Jocelynn Katu (Aviation Golf Club)

SRIXON NEW ZEALAND SECONDARY SCHOOLS FINAL

1 September

Venue: Taupo Golf Club Massey High School (North Harbour)

SRIXON NEW ZEALAND MEN’S UNDER 19’S

3 – 5 September

Venue: Taupo Golf ClubTaylor Gill (Bay of Islands Golf Club)

SRIXON NEW ZEALAND WOMEN’S UNDER 19’S

3 – 5 September

Venue: Taupo Golf Club Brydie Hodge (Levin Golf Club)

CARRUS OPEN CHARLES TOUR

25 – 28 September

Venue: Tauranga Golf Club

Mark Brown

Jenna Hunter

JOHN JONES STEELE HAREWOOD OPEN - CHARLES TOUR

24 – 27 October

Venue: Harewood Golf Club

Ryan Chisnall (Greenacres Golf Club)


NEW ZEALAND MIXED FOURSOMES28 – 29 October

Venue: Taupo Golf Club

Brittney Dryland & Johnny Tynan

(Titirangi Golf Club)

DINERS CLUB FREYBERG MASTERS3 – 7 November

Venue: Waitangi Golf ClubNorthland

NEW ZEALAND MID AMATEUR11 – 12 November

Venue: Wairakei Golf Club

Mark Boulton (Australia )

Kathy Olsen (Maraenui Golf Club)

2014 International Amateur Success

2014 New Zealand Golf Tournament Winners

HIGH PERFORMANCE SBS INVITATIONAL15 – 16 November

Venue: Invercargill Golf ClubBay of Plenty

NEW ZEALAND VETERANS HANDICAP FOURSOMES

24 – 27 November

Venue: Weedons Golf Club

Jean Guest (Weedons Golf Club)

Gwen Heffernan (Greendale Golf Club)

TORO MEN’S INTERPROVINCIAL2 – 6 December

Venue: Hamilton Golf ClubWaikato

WOMEN’S INTERPROVINCIAL9 – 13 December

Venue: Lochiel Golf ClubAuckland

EVENT DATE & VENUE PLAYER POSITION

VICTORIAN JUNIOR MASTERS6 – 8 January

Venue: Waverley Golf Club, New ZealandAlanna Campbell 1st

SOUTH AUSTRALIAN JUNIOR AMATEUR

6 – 7 January

Venue: Kooyonga Golf Club & North

Adelaide Golf Club, Australia

Bailey Smith 1st

AUSTRALIAN AMATEUR CHAMPIONSHIP

14 – 19 January

Venue: The Grange Golf Club, AustraliaTae Koh Champion

SANCTUARY COVE TROPHY18 - 19 February

Venue: Muriwai Golf Club, New ZealandNew Zealand Winner

PACIFIC NORTHWEST AMATEUR

7 – 13 July

Venue: Palouse Ridge Golf Club,

United States of America

James Beale Champion

CANADIAN AMATEUR CHAMPIONSHIP

4 – 8 August

Venue: Elmhurst Golf Club &

Southwood Golf Club, Canada

James Beale 1st

BOYS’ & GIRLS’ QLD AMATEUR

8 – 10 December

Venue: Virginia Golf Club &

Nudgee Golf Club, Australia

Henry Spring 1st

2014 New Zealand Amateur Team Performances


QUEEN SIRIKIT CUP

9 – 11 April

Venue: Saujana Golf & Country Club,

Malaysia

Munchin Keh, Wenyung Keh &

Julianne Alvarez10th

ESPIRITO SANTO WORLD TEAMS CHAMPIONSHIP

3 – 6 September

Venue: Karuizawa Golf Club, Japan

Munchin Keh, Julianne Alvarez

& Zoe Beth Drake34th

EISENHOWER WORLD TEAMS CHAMPIONSHIP

11 – 14 September

Venue: Karuizawa Golf Club, Japan

Tae Koh, Josh Munn &

Vaughn McCallT22nd


2120

2014 Major Championship Performances


KRAFT NABISCO CHAMPIONSHIP

3 – 6 April

Venue: Mission Hills Golf Club, ChinaLydia Ko T29th

U.S. OPEN

12 – 15 June

Venue: Pinehurst Resort,


Steven Alker MC

U.S. WOMEN’S OPEN

19 – 22 June

Venue: Pinehurst Resort,


Lydia Ko T15th

WOMEN’S BRITISH OPEN10 – 13 July

Venue: Royal Birkdale Golf Club, EnglandLydia Ko T29th

WOMEN’S BRITISH OPEN10 – 13 July

Venue: Royal Birkdale Golf Club, EnglandCatheryn Bristow MC

WEGMAN’S LPGA CHAMPIONSHIP

14 – 17 August

Venue: Monroe Golf Club,


Lydia Ko 3rd

EVIAN CHAMPIONSHIP11 - 14 November

Venue: Evian Resort Golf Club, FranceLydia Ko T8th

2014 International Professional Success


ISPS NEW ZEALAND WOMEN’S OPEN

31 January – 2 February

Venue: Clearwater Golf Club, New ZealandLydia Ko 2nd

VICTORIAN PGA CHAMPIONSHIP

6 – 9 February

Venue: Huntingdale Golf Club, AustraliaGareth Paddison 1st

WOMEN’S AUSTRALIAN OPEN13 – 16 February

Venue: Victoria Golf Club, AustraliaLydia Ko T3rd

PUERTO RICO OPEN

6 – 9 March

Venue: Trump International Golf Club,

Puerto Rico

Danny Lee 2nd

JTBC FOUNDERS CUP

20 – 23 March

Venue: Wildfire Golf Club,


Lydia Ko T2nd

SWINGING SKIRTS LPGA CLASSIC

24 – 27 April

Venue: Lake Merced Golf Club,


Lydia Ko 1st

SOUTH PACIFIC PAPUA NEW GUINEA OPEN

8 – 11 May

Venue: Royal Port Moresby Golf Club,

Papua New Guinea

Jared Pender 2nd

CLEVELAND OPEN

8 – 11 June

Venue: Lakewood Country Club,


Steven Alker 1st

ARKANSAS CHAMPIONSHIP

27 – 29 June

Venue: Pinnacle Country Club,


Lydia Ko T2nd

CITY OF MACKAY OPEN16 - 19 July

Venue: Mackay Golf Club, AustraliaJosh Geary 1st

MARATHON CLASSIC

17 - 20 July

Venue: Highland Meadows Golf Club,


Lydia Ko 1st

ALBERTSON BOISE OPEN

17 - 20 July

Venue: Hillcrest Country Club,


Steven Alker 2nd

LPGA CHAMPIONSHIP

14 – 17 August

Venue: Monroe Golf Club,


Lydia Ko 3rd

SOUTH PACIFIC OPEN11 – 14 September

Venue: Tina Golf Club, New CaledoniaLuke Toomey T2nd

WEST AUSTRALIAN OPEN16 – 10 October

Venue: Cottesloe Golf Club, AustraliaRyan Fox 1st

LPGA TAIWAN CHAMPIONSHIP30 October – 2 November

Venue: Miramar Golf Club, TaipeiLydia Ko 3rd

AUSTRALIAN SENIORS PGA CHAMPIONSHIP

30 October – 2 November

Venue: Richmond Golf Club, AustraliaSimon Owen 1st

NEW SOUTH WALES OPEN13 – 16 November

Venue: Castle Hill Country Club, AustraliaJosh Geary 2nd

OHL CLASSIC AT MAYAKOBA16 – 19 November

Venue: El Camaleon Golf Club, MexicoDanny Lee 3rd

CME GROUP TOUR CHAMPIONSHIP

20 – 23 November

Venue: Tiburon Golf Club,


Lydia Ko 1st

ISPS Handa NZ Women’s Open

Lydia Ko


2322

AUDITOR’S REPORT

Opinion

In our opinion the financial statements on pages 25 to 42:

• comply with generally accepted accounting practice in New Zealand;

• give a true and fair view of the financial position of the incorporated society as at 31December 2014 and of its financial performance and cash flows for the year then ended.

Other matter

The financial statements of New Zealand Golf Incorporated, for the year ended 31 December 2013, were audited by another auditor who expressed an unmodified opinion on those statements on 2 April 2014.

Report on other legal and regulatory requirementsIn accordance with the requirements of sections 16(1)(d) and 16(1)(e) of the Financial Reporting Act 1993, we report that:

• we have obtained all the information and explanations that we have required; and

• in our opinion, proper accounting records have been kept by New Zealand Golf Incorporated as far as appears from our examination of those records.

17 April 2015Auckland

Independent auditor’s reportTo the members of New Zealand Golf IncorporatedReport on the financial statementsWe have audited the accompanying financial statements of New Zealand Golf Incorporated(''the incorporated society'') on pages 25 to 42. The financial statements comprise the statement of financial position as at 31 December 2014, the statements of financial performance,movements in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Board's responsibility for the financial statements

The board is responsible for the preparation of financial statements in accordance with generally accepted accounting practice in New Zealand that give a true and fair view of the matters to which they relate, and for such internal control as the board determines is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the incorporated society’s preparation of the financial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the incorporated society's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the presentation of the financial statements.

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

Subject to certain restrictions, partners and employees of our firm may also deal with the incorporated society on normal terms within the ordinary course of trading activities of the business of the incorporated society. These matters have not impaired our independence as auditor of the incorporated society. The firm has no other relationship with, or interest in, the incorporated society.


25

FOR THE YEAR ENDED 31 DECEMBER 2014 NOTES 2014 $ 2013 $

REVENUE

Affiliation Fees 2 2,403,987 2,454,882

Government Grants 765,000 821,217

Interest Revenue 3 64,065 67,524

MAP Subscriptions 201,140 224,733

Sponsorship & Grants 483,448 649,992

R&A Grant 177,532 8,000

New Zealand Men’s Open - Revenue 4 5,900 -

Sundry Income 5 525,690 478,200

Share of Associate Surplus 23 121,843 40,000

TOTAL REVENUE 4,748,605 4,744,548

EXPENSES

New Zealand Golf Services 7 3,235,117 3,067,071

New Zealand Men’s Open - Expenses 4 211,683 13,637

New Zealand Women’s Open - Expenses 11,241 13,976

Elite Development & Events 8 824,738 947,546

Golf Development 9 32,077 14,403

Junior Golf 10 223,025 403,026

Mutual Assistance Plan 11 163,172 154,220

Depreciation 63,612 68,923

Amortisation 35,130 7,331

TOTAL EXPENSES 4,799,795 4,690,133

NET OPERATING SURPLUS / (DEFICIT) FOR THE YEAR 6 (51,190) 54,415

NET SURPLUS/ (DEFICIT) FOR YEAR (51,190) 54,415

ALLOCATED AS FOLLOWS

NZG Accumulated Funds (51,190) 54,415

TOTAL ALLOCATIONS (51,190) 54,415

FINANCIAL STATEMENTSStatement of Financial Performance

Junior Golf


2726

AS AT 31 DECEMBER 2014 NOTES 2014 $ 2013 $

EQUITY 1,610,737 1,661,927

CURRENT ASSETS

Cash and Bank Balances 12 296,454 426,512

Investments 13 594,346 870,965

Trade and Other Receivables 14 699,856 614,618

Inventories 15 32,434 39,887

Loan Receivable - Current 16 119,690 119,690

GST Receivable 37,517 15,203

TOTAL CURRENT ASSETS 1,780,297 2,086,875

CURRENT LIABILITIES

Trade and Other Payables 17 217,771 378,092

PAYE Payable 31,903 23,524

Provisions 18 26,500 26,500

Employee Benefits Payable 19 124,657 104,141

Income in Advance 30,799 65,326

Player Trusts 148,868 158,884

Sir Bob Charles Scholarship 20 222,467 222,467

TOTAL CURRENT LIABILITIES 802,965 978,934

WORKING CAPITAL 977,332 1,107,941

NON CURRENT ASSETS

Loan Receivable - Non-Current 16 116,146 235,836

Property, Plant & Equipment 21 176,781 102,155

Intangible Assets 22 127,414 74,524

Investment Associate 23 213,064 141,471

TOTAL NON CURRENT ASSETS 633,405 553,986

NET ASSETS 1,610,737 1,661,927

Statement of Financial Position

New Zealand Golf ChairmanPaul Fyfe15th April 2015

Statement of Movements in Equity


Equity at start of the year 1,661,927 1,607,512

Net operating surplus / (deficit) for the year (51,190) 54,415

TOTAL EQUITY AT END OF THE YEAR 1,610,737 1,661,927

Munchin Keh


2928

Statement of Cashflow


CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from Operations 4,412,860 4,649,833

Interest Received 42,450 36,992

Payments to Suppliers and Employees (4,713,665) (4,307,323)

Net GST (Paid) / Received (22,314) 93,191

NET CASH INFLOW / (OUTFLOW) FROM

OPERATING ACTIVITIES28 (280,669) 472,693

CASH FLOWS FROM INVESTING ACTIVITIES

Dividends Received - Associate 50,250 50,249

Payments made for Purchase of Property, Plant & Equipment (138,237) (10,835)

Payments made for Purchase of Intangibles (38,019) (60,000)


INVESTING ACTIVITIES(126,006) (20,586)

CASH FLOWS FROM FINANCING ACTIVITIES


FINANCING ACTIVITIES

- -

TOTAL NET CASH INFLOW / (OUTFLOW) (406,675) 452,107

Opening Cash and Bank Balances and Investments Balance 1,297,477 845,370

CLOSING CASH AND BANK BALANCES

AND INVESTMENTS BALANCE890,800 1,297,477

The accompanying notes form part of and are to be read in conjunction with these financial

statements.

LOVE Golf ShootLydia Ko & Israel Dagg


3130

1. Statement of Accounting PoliciesBasis of Preparation

New Zealand Golf (Inc) (the “Organisation”) is an incorporated society registered under the Incorporated Societies Act 1908.

The financial statements comprise statements of: financial performance; movements in equity; statement of financial position; statement of cashflows; accounting policies; the notes to these financial statements.

The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand. They comply with approved Financial Reporting Standards (FRSs) and Statements of Standard Accounting Practice (SSAPs) as appropriate for entities that qualify for and apply differential reporting concessions.

From 1 April 2014, the new Financial Reporting Act 2013 ( “FRA 2013”) has come into force replacing the Financial Reporting Act 1993, this is effective for entities reporting under the Charities Act 2005 with reporting periods beginning on or after 1 April 2015. This will be effective for the organisations 31 December 2016 year end.

For New Zealand Golf (Inc), a registered charity with the Charities Commission, there will be statutory financial reporting obligations which require preparation of financial statements in accordance with the prescribed accounting standards by the External Reporting Board (XRB) - a new suite of accounting standards for not-for-profit public benefit entities (NFP PBEs).

Charities which meet the definition of ‘large’ (defined as having expenses in excess of $ 30 million) will be in Tier 1 (full reporting) of the NZ PBE Accounting Standards Framework, while those with operating expenditure between $2 million to $30 million will be in Tier 2 (reduced disclosures regime). Based on the current expenditure, New Zealand Golf (Inc) would be a Tier 2 reporting entity.

Differential ReportingThe Organisation qualifies for differential reporting as it is not publicly accountable and is not large as defined in the Framework for

Differential Reporting. All available differential reporting exemptions allowed under the framework for differential reporting have been adopted except for:

• FRS 9 – Information to be disclosed in the financial statements, where some additional disclosures have been made.

• FRS 3 – Accounting for Property, Plant and Equipment, where the Organisation has not opted to align depreciation rates with those set by the Inland Revenue Department of New Zealand.

• FRS 10 - Statement of Cash Flows, where the Organisation has opted to present a cash flow statement.

Measurement Base

The measurement base adopted is historical cost, except for financial instruments which are initially recognised at fair value

Specific Accounting Policies

a) Investment in Associate

Associates are entities in which the Organisation, either directly or indirectly, has a significant but not controlling interest. The Associate’s results are included in the statement of financial performance, using the equity method. The investment in the Associate is carried in the Organisation’s statement of financial position at cost plus acquisition change in the Organisation’s share of net assets in the Associate, less any impairment value.

b) Cash and bank balances

Cash and bank balances are short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, with original maturity dates less than 90 days. Cash and bank balances with original maturities that exceed 90 days are recognised as investments.

c) Investments

Investments are stated at cost less impairment.

NOTES TO THE FINANCIAL STATEMENTS

d) Receivables

Receivables are stated at estimated realisable value after providing against debts where collection is doubtful. Bad debts are written off in the period which they are identified.

e) Inventories

Inventories are stated at the lower of cost and the net realisable value. Cost is based on the first-in first-out principle and includes expenditure incurred in acquiring the inventories and bringing them to their existing location.

f) Property, Plant & Equipment

Items of property, plant and equipment are initially recorded at cost and depreciated in note g). Initial cost includes the purchase consideration, or fair value in the case of donated assets and those costs directly attributable to bringing the asset to the location and condition for its intended use.

Any subsequent expenditure that increases the economic benefits derived from an asset is capitalised. Expenditure on repairs and maintenance that does not increase the economic benefits of an asset is expensed in the period it is incurred.

Items of property, plant and equipment are written down immediately if impairment in the value of the asset causes its recoverable amount to fall below its carrying amount. The impairment is recognised in the statement of financial performance.

Where an item of property, plant and equipment is disposed of, the gain or loss recognised in the statement of financial performance is calculated at the difference between the net sale price and the carrying amount of the asset. Any revaluation surplus is reduced or increased by the amount applicable to that item.

g) Depreciation

Depreciation of property, plant and equipment is calculated on a straight-line basis (SL) as indicated below.

Leasehold Improvements 10 years Office Equipment 4 years SL IT Equipment 4 years SL Tournament Equipment 4 years SL

h) Intangible Assets

Intangible assets are stated at cost less accumulated amortisation. Intangible assets are amortised as outlined below.

Trademarks 10 years Websites 4 years SL

i) Taxation

New Zealand Golf is exempt from tax due to its status as an amateur sports promoter under the current tax legislation.

j) Goods and Services Tax (GST)

The financial statements have been prepared on a GST exclusive basis, except accounts receivable and accounts payable which are stated inclusive

of GST.

k) Provisions

Provisions are recognised when the Organisation has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made as to the amount of the obligation.

l) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Organisation and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, net of GST and discounts. The following specific recognition criteria must be met before revenue is recognised:

Government Grants, Grants & Sponsorship

Government Grants, Grants & Sponsorship received are recognised as revenue when they are received, unless there are contractual conditions attached that remain to be fulfilled, or if any are received in advance.

Interest

Interest revenue is recognised as it accrues, using the effective interest method.

m) Impairment

The carrying value of each asset is assessed for indicators of impairment at reporting date. Where the estimated recoverable amount of the asset is less that its carrying amount, the asset is written down. The recoverable amount of an asset is the higher of its fair value less cost to sell, and value in use. Any impairment loss is recognised in the statement of financial performance.

SL

SL


3332

2. Affiliation Fees

AFFILIATION FEES 2014 $ 2013 $

Gross Affiliation Fee 2,689,161 2,774,934

Less: GST (350,760) (361,948)

(2,338,401) (2,412,986)

Summer Member Fees 38,086 36,787

“LOVE Golf” Registration Fees 27,500 5,109

TOTAL REVENUE 2,403,987 2,454,882

NUMBER OF FULL PLAYING MEMBERS* 93,536 96,519

*Number of Full Playing Members (excludes life, junior and secondary members). For full affiliated membership details please refer to page 16 of the Annual Report.

3. Interest Revenue

INTEREST REVENUE 2014 $ 2013 $

Interest - Investments 49,455 46,762

Interest - Loan Receivable 14,610 20,762

TOTAL REVENUE 64,065 67,524

n) Leases

Leases or hire purchase contracts where the Organisation assumes substantially all the risks and rewards of ownership are classified as finance leases. All other leases are classified as operating leases.

Operating Leases

Operating lease payments are recognised as an expense in the statement of financial performance on a straight-line basis over the lease term. Any lease incentives are recognised

as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

o) Changes in Accounting Policies

There have been no changes in accounting policies in 2013.

4. New Zealand Men’s OpenThe Organisation currently contracts a third party service provider to stage, manage and underwrite the New Zealand Men’s Open. The Organisation contributes $200,000 towards the staging and management of the event (2013: Nil).

6. Net Surplus / (Deficit) for the Year

NET SURPLUS / (DEFICIT) FOR THE YEAR 2014 $ 2013 $

Net Surplus / (Deficit) is arrived at after charging the following expenses:

Fees Paid to Independent Auditor (KPMG - Auckland), (Prior year: BDO)

Audit of Annual Financial Statements 17,850 22,207

Monthly Reporting Assistance - 8,742

Depreciation

Leasehold Improvements 2,990 2,990

Office Furniture and Fittings 22,167 27,669

IT Equipment 15,436 24,372

Tournament Equipment 23,019 13,892

Amortisation

Trademarks 6,378 3,581

Websites 28,751 3,750

Minimum Lease Payments

Operating Lease 118,318 123,303

7. New Zealand Golf Services

NEW ZEALAND GOLF SERVICES 2014 $ 2013 $

Administration 886,664 848,196

Salaries 1,317,434 1,192,554

Slope Handicap Network 528,750 535,000

Marketing and Promotion 347,717 338,910

Turf Culture 154,552 152,411

TOTAL EXPENDITURE 3,235,117 3,067,071

5. Sundry Income

SUNDRY INCOME 2014 $ 2013 $

Tournament Income 151,130 152,867

Sponsor Goods in Kind - 9,547

New Zealand Racing Board 102,213 69,643

Website Income 66,574 115,015

Donations 50,072 51,541

Miscellaneous Income 107,701 31,587

NZGN Directors Fee 48,000 48,000

TOTAL REVENUE 525,690 478,200


3534

9. Golf Development

GOLF DEVELOPMENT 2014 $ 2013 $

Golf Development 32,077 14,403

TOTAL EXPENDITURE 32,077 14,403

8. Elite Development and Events

ELITE DEVELOPMENT AND EVENTS 2014 $ 2013 $

Clothing 3,890 2,154

Coaching 20,218 28,791

International Events 201,458 215,211

International Junior Events 22,561 3,641

National Events 278,773 344,881

National Junior Events 35,385 34,961

Sports Science Support 11,180 16,524

Sponsor Goods in Kind - 9,547

High Performance Programme 215,347 244,909

Tournament Assistance 21,869 33,224

Selectors Expenses 14,057 13,703


Toro Men’s Interprovincial Championship

WinnersWaikato

11. New Zealand Golf Mutual Assistance Plan

NZG MUTUAL ASSISTANCE PLAN 2014 $ 2013 $

Administration and Insurance 46,500 46,500

District Associations Assistance Grants - -

NZG Management Fee 2,431 278

Mutual Assistance Payments 114,241 107,442


The Mutual Assistance Plan is available to all members. The Plan provides insurance from a ‘A+’ rated insurance provider. It is a cover that provides compensation to members for damage to golf equipment that is outside the scope of cover provided by household or personal effects insurance. Its coverage includes All Risks and Public or Third Party Liability (subject to conditions of policy).

10. Junior Golf

JUNIOR GOLF 2014 $ 2013 $

Sir Bob Charles Scholarship - expenses 4,500 4,500

District Junior Network Delivery 125,000 296,875

Promotion - 2,044

Junior Golf Events 42,516 38,022

School Programmes 1,730 530

GDM Training and Uniforms 1,000 7,262

Coach Education 48,279 53,793


Toro Women’s Interprovincial Championship

WinnersAuckland


3736

12. Cash and Bank Balances

CASH AND BANK BALANCES 2014 $ 2013 $

Westpac - Bank Balances 91,446 272,981

Westpac - Players Trust 204,808 153,331

Petty Cash 200 200

CARRYING VALUE 296,454 426,512

13. Investments

INVESTMENTS 2014 $ 2013 $

Westpac - Term Deposit 594,346 870,965

TOTAL CARRYING VALUE 594,346 870,965

Westpac term deposit balances are unsecured and accrue interest between 4.10% - 4.50%pa (2013: 3.75%pa - 4.10%pa). Maturity periods range from 6 - 12 months (2013: 6-12 months).

14. Trade and Other Receivables

TRADE AND OTHER RECEIVABLES 2014 $ 2013 $

Trade Receivables 494,031 378,720

Other Receivables 18,496 11,491

Allowance for impairment (835) (835)

511,692 389,376

Prepayements 188,164 225,242

CARRYING VALUE 699,856 614,618

15. Inventories

INVENTORIES 2014 $ 2013 $

Stock on hand 9,939 21,264

Merchandise 22,495 18,623


Westpac Players Trust account is separate unsecured bank account administered by the Organisation, which accrues interest at 3.25%pa (2013: 0.75%pa). The account is used to reimburse amateur players for specific travel and tournament fee costs. The money is effectively held in trust by the Organisation for these players.

17. Trade and Other Payables

TRADE AND OTHER PAYABLES 2014 $ 2013 $

Trade Payables 210,421 370,197

Accrued Expenses 7,350 7,895


16. Loan Receivable

LOAN RECEIVABLE 2014 $ 2013 $

Current 119,690 119,690

Non-current 116,146 235,836


The Organisation was one of two full members of another incorporated society, New Zealand Sports Turf Institute Incorporated (“NZSTI”). In December 2010 NZSTI sold its business to Premium Power Limited (subsequently renamed to New Zealand Sports Turf Institute Limited). The Organisation has received a contractual right to free turf culture services from NZSTI for a period of 5 years as consideration for the transaction (in lieu of cash), beginning April 2011.

The Organisation has therefore recognised a loan receivable and gain to profit or loss, measured at the net present value of the fair value of the services to be received, discounted at a market rate of 5%.

18. Provisions

PROVISIONS 2014 $ 2013 $

NZG Mutual Assistance Plan Claim Provision

Carrying Value at Beginning of Year 26,500 26,500

Reduction in provision - -

CARRYING VALUE AT END OF YEAR 26,500 26,500

The provision represents the amount that is estimated that would represent claims relating to the current year in the unlikely event the NZG Mutual Assistance Scheme (refer note 11) was wound up.

19. Employee Benefits Payable

EMPLOYEE BENEFITS PAYABLE 2014 $ 2013 $

Accrued Wages 30,402 20,115

Holiday Pay 94,255 84,026



3938

20. Sir Bob Charles ScholarshipThe Sir Bob Charles Scholarship has been accounted for as a separate liability account. These funds are invested on behalf of Sir Bob Charles where the Organisation can only use the interest for Scholarship payments.

To maximise interest revenue from the funds, the funds are invested in high interest term deposits with New Zealand registered banks - refer note 13.

21. Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT COST $ ACCUMULATED

DEPRECIATION $

CARRYING

VALUE $

2014

Leasehold Improvements 29,896 (11,046) 18,850

Office Furniture 256,812 (224,240) 32,572

IT Equipment 235,882 (213,410) 22,472

Tournament Equipment 271,108 (168,221) 102,887

793,698 (616,917) 176,781

2013

Leasehold Improvements 29,896 (8,056) 21,840

Office Furniture 226,626 (202,073) 24,553

IT Equipment 229,218 (197,974) 31,244

Tournament Equipment 169,720 (145,202) 24,518

655,460 (533,305) 102,155

Waitakere Golf Club

23. Investment in AssociateIn November 2001 the Organisation paid $140,000 to acquire 500 shares, representing 50% of the issued shares of New Zealand Golf Network Ltd (‘NZGN’). In December 2001, NZGN issued a further 50,000 shares, of which the Organisation acquired 25,000 for the consideration of $1.00 per share; 15,000 shares remain unpaid and uncalled.

In October 2012 the shareholders of NZGN resolved to reduce the number of shares on issue to 20,000, of which now the Organisation holds 10,000, thereby cancelling 15,500 shares that the organisation owned.

NZGN’s primary business is the operation of the Slope Handicap system on behalf of the Organisation and the development of golf management system software. NZGN has a balance date of 31 March and the entity is not audited. The Directors of New Zealand Golf Network are not aware of any significant events or transactions since NZGN’s balance date.

RESULTS OF NZGN 2014 $ 2013 $

Share of Operating Surplus Before Income Tax 169,226 55,555

Income Tax (47,383) (15,555)

SHARE OF NET SURPLUS 121,843 40,000

Investment in Associate

Carrying Value at Beginning of Year 141,471 151,720

Share of Recognised Surplus 121,843 40,000

Dividend Paid (50,249) (50,249)

CARRYING VALUE AT END OF YEAR 213,065 141,471

Trademarks under the control of the Organisation include:• New Zealand Golf Incorporated; and• Junior Tiger

22. Intangible Assets

INTANGIBLE ASSETS 2014 $ 2013 $

Trademarks

Original Cost 54,266 35,810

Accumulated Amortisation (23,914) (17,536)

Websites

Original Cost 129,563 60,000

Accumulated Amortisation (32,501) (3,750)



4140

24. Commitments and Contingencies

INTANGIBLE ASSETS 2014 $ 2013 $

Operating Lease Commitments

Lease commitments under non-cancellable operating leases are as follows:

Current 68,006 108,812

Non Current 67,709 69,786

TOTAL OPERATING LEASE COMMITMENT 135,715 178,598

Capital Commitments

The Organisation has agreed to pay NZGN a handicap maintenance fee of $41,667 (excl. GST) per month, and a website maintenance fee of $6,250 (excl. GST) per month.

Contingencies

There are no contingencies as at reporting date (2013: $nil).

25. Related Party TransactionsBoard Members E Bateup and M Ward represent the Organisation on the Board of New Zealand Golf Network Ltd (‘NZGN’) on a voluntary basis.

• The Organisation received a Directors’ fee from New Zealand Golf Network (‘NZGN’) in 2014 of $48,000 (2013: $48,000).

• The Organisation paid New Zealand Golf Network Ltd (‘NZGN’) a service fee to maintain and operate the Slope Handicap Network system in 2014 of $528,750 (2013: $535,000).

• The Organisation received a donation from New Zealand Golf Network Ltd (‘NZGN’) in 2014 of $50,000 (2013: $50,000).

Hastings Golf Club

26. Going ConcernA Heads of Agreement was entered into by the Organisation and the New Zealand Professional Golf Association (PGA) on 23 April 2013. The intention of this agreement was to create a whole of golf strategic framework and investigate any alignment or integration opportunities.

An Establishment Committee is tasked to recommend the approach to potential alignment or integration of the NZPGA and the Organisation, and to oversee any change process necessary. The outcome of this process is yet to be finalised, however the Directors believe the outcome will not affect the going concern assumption of the Organisation as a continuing entity. The Directors have continued to adopt the going concern assumption of the New Zealand Golf Inc. for the year ended 31 December 2014.

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28. Net Cash Flow from Operating Activities

NET CASH FLOW FROM OPERATING ACTIVITIES 2014 $ 2013 $

Surplus / (Deficit) for the Period (51,190) 54,415

Non Cash and Non Operating Items

Interest - Loan Receivable (14,610) (20,762)

Share of Associate Surplus (121,843) (40,000)

Depreciation 63,612 68,923

Amortisation 35,130 7,331

Allowance for Impairment - -

Bad Debt Written Off 6,879 5,134

Non-cash Services Received - Turf Culture 133,978 134,944

Provision - Reversal - -

Loss on Disposal - -

TOTAL NON CASH AND NON OPERATING ITEMS 103,147 155,570

Movement in Working Capital Items

Reduction / (Increase) in Trade and Other Receivables (122,316) (62,287)

Reduction / (Increase) in Prepayments 37,078 3,796

Reduction / (Increase) in Inventories 7,453 27,504

Reduction / (Increase) in GST Receivable (22,314) 93,191

Reduction / (Increase) in Trade and Other Payables and PAYE Payable* (208,500) (18,460)

Reduction / (Increase) in Income in Advance (34,526) 65,326

Reduction / (Increase) in Employee Benefits Payable 20,516 1,817

Reduction / (Increase) in Players Trusts (10,016) 116,239

Reduction / (Increase) in Sir Bob Charles Scholarship - (1,338)

NET MOVEMENTS IN WORKING CAPITAL ITEMS (332,625) 262,708

NET CASH FLOW FROM OPERATING ACTIVITIES (280,667) 472,693

*Excludes Payables relating to Investing Activities

27. Events After Reporting DateThere were no material events after reporting date (2013: nil).

Commercial Partners

Funding Partners

Official Suppliers

Associate Partners

Community Partners

44

THE VALUE OF GOLF

The Game of Golf Provides Unique and

Lifelong Enrichment.

VISION

Golf is New Zealand’s Favourite Pastime.

MISSION

To Grow the Love of Golf.

www.golf.co.nz

[email protected]

Tel +64 (0)9 485 3230

Fax +64 (0)9 486 6745

Volunteers at the Waitangi Golf Club

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