Presidents Message - June

 Dear Members,

During June we will hold the special meeting to consider the nomination of Margaret Dawes-Smith OAM as Life Member of the Club followed by the Ladies Committee lunch. A notice of meeting is being sent out in the coming days. We look forward to as many members as possible for such an important occasion

The Anzac Day lunch convened by our Australasian Pioneers members in the Albert Room was a great event, and the speech by Robert O’Neill, Professor Emeritus of Strategic Studies at the Australian National University (ANU) provided an informative insight into Kaiser Wilhelm II’s unsuccessful use of the power of militant Islam against the British, the Russians and the French to increase the power of Germany in Europe at the commencement of the last century .

We are nearing the end of another financial year and our performance for the current year can be accurately forecast.

The current year is closely replicating the financial year ended 2017, namely a modest surplus, after significant repairs and maintenance expenditure, including the current refurbishment of the sauna.

Your Board has spent considerable time through various committees examining the performance of the Club over several years to understand the Club’s current computer systems and importantly trends within the Club such as member derived income, non member derived income, age demographics, revenue and expenditure trends (including repairs and maintenance, whether expensed or capital expenditure) all vital information to plan for our medium to long term future of the Club.

It is important that this data is known not only by the Board but also members so that they can evaluate what the Board may recommend from time to time to improve our facilities and services for all members, including building initiatives which may become available to provide necessary capital for growth of business, refurbishment of existing infrastructure and capital reserves. 

During 2019, the Club will replace all computer systems, currently three systems which require manual augmentation, with one integrated system. This will streamline all functionality including concierge, accounts, membership and marketing and general administration within one system providing key staff with more time to commit to more substantial matters such as membership and use of Club facilities.

Current membership stands at approximately 2,035 with the average age of member being 62 years of age.

A comparative analysis of revenues and expenditures is as follows:

 

2014/2015

2015/2016

2016/2017

2017/2018

REVENUES

5,996,941

5,927,634

5,741,972

5,583,134

GROSS SURPLUS

4,906,050

4,885762

4,734,228

4,653,258

Employee Expenses

2,887,719

2,868,111

2,947,478

3,044,800

Other Expenses

1,693,966

1,763,872

1,753,711

1,537,000

Total expenses

4,581,685

4,631,983

4,701,189

4,581,800

Operating Surplus including R & M as business expense

124,365

253,000

33,039

48,000

 

In relation to our aged building the annual costs expensed for repairs and maintenance have been $454,059 for FY 2016, $421,892 for FY 2017 and the forecast for FY 2018 is approximately $320,000.

The importance of all members understanding its Club’s performance ensures no misunderstandings or surprises as to the reality of performance and the need to develop a strategy in the short to medium term to address the necessary refurbishments and growth. The above table indicates that revenues do not necessarily increase, as do costs as a result of inflation and other factors which the Club cannot control, by way of example the cost of electricity which has increased by 15% from $183,774 in 2017 to a forecast of $210,832 in 2018.

The following table is also instructive:

 

2015

2016

2017

2018

Food

1,798,038

1,674,500

1,515,079

1,428,000

Beverage

727,716

649,357

634,482

635,000

Garage

320,300

289,841

278,279

272,000

Functions

378,863

320,771

368,284

337,500

Subscriptions

1,425,296

1,474,155

1,465,230

1,431,000

 

The food, beverage and garage revenue lines since 2014 have shown a steady decrease of approximately 15% over that period, mainly a decrease in wedding revenue as the figures reveal, a non member derived source, as are many functions (without which a surplus without subscription increase) could not be achieved. Accommodation remains strong but facilities require refurbishment.

The Board is committed to continue a constructive conversation with its members to enable us to work together to preserve a special location.

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