2018 Annual Report 2 Golf Canada PRESIDENTS 1896 Hon. George A. Drummond, Royal Montreal GC, Dixie (QC) 1940 Frank H. Harris, Mississaugua G&CC, Mississauga (ON) 1979 W. Len Goldson, Toronto GC, Toronto (ON) 1897 John Hamilton, Quebec GC, Québec (QC) 1941 W.S. Charlton, Point Grey GC, Vancouver (BC) 1980 Ralph M. Everson, Kanawaki GC, Kahnawake (QC) 1898 Col. George A. Sweny, Toronto GC, Toronto (ON) 1942 C.H. Sclater, Hamilton G&CC, Ancaster (ON) 1981 Ralph Costello, Riverside CC, Saint John (NB) 1899 Lt.-Col. D.T. Irwin, Royal Ottawa GC, Aylmer (QC) 1943 M.R. Ferguson, Beaconsfield GC, Montreal (QC) 1982 John S. Marshall, Q.C., Hamilton G&CC, Ancaster (ON) 1900 W.W. Watson, Royal Montreal GC, Dixie (QC) 1944 Dr. A.W. Matthews, Mayfair G&CC, Edmonton (AB) 1983 Manual Bricker, Glendale G&CC, Winnipeg (MB) 1901 Col. George A. Sweny, Toronto GC, Toronto (ON) 1945 H.R. Frost, K.C., Thornhill GC, Thornhill (ON) 1984 Wm. A. Farlinger, F.C.A., Lambton G&CC, Toronto (ON) 1902 G.H. Balfour, Royal Montreal GC, Dixie (QC) 1946 J.A. Fuller, Royal Montreal GC, Dixie (QC) 1985 James D. Bruce, Capilano G&CC, Vancouver (BC) 1903 P.D. Crerar, Hamilton GC, Ancaster (ON) 1947 George W. Lang, Westmount G&CC, Kitchener (ON) 1986 Dr. Douglas G. Brewer, Fredericton G&CC, Fredericton (NB) 1904 Fayette Brown, Royal Montreal GC, Dixie (QC) 1948 F.N. Robertson, Riverside G&CC, Saint John (NB) 1987 Thomas P. Wood, Derrick G&WC, Edmonton (AB) 1905 D.R. Wilkie, Toronto GC, Toronto (ON) 1949 R.C. Holbrook, Royal Montreal GC, Dixie (QC) 1988 Harold Brownstein, Elm Ridge GC, Île Bizard (QC) 1906 Hon. George Perley, Royal Ottawa GC, Aylmer (QC) 1950 C.W. Watson, St. George’s G&CC, Toronto (ON) 1989 Keith Rever, Wascana GC, Regina (SK) 1907 A.W. Austin, Lambton G&CC, Toronto (ON) 1951 J. Gordon Bowers, Capilano G&CC, Vancouver (BC) 1990 Robert G. Long, Rosedale GC, Toronto (ON) 1908 Dr. R.F. Ruttan, Royal Montreal GC, Dixie (QC) 1952 Colin Rankin, Beaconsfield GC, Montreal (QC) 1991 Peter J. Hope, Brightwood G&CC, Dartmouth (NS) 1909 Col. George A. Sweny, Toronto GC, Toronto (ON) 1953 A.J. Mylrea, Rosedale GC, Toronto (ON) 1992 Hugh G. Hallward, Royal Montreal GC, Montreal (QC) 1910 A.W. Austin, Lambton G&CC, Toronto (ON) 1954 R.C. Borland, Calgary G&CC, Calgary (AB) 1993 Findlay S. Young, Prince George G&CC, Prince George (BC) 1911 Hon. Justice G.F. Orde, Royal Ottawa GC, Aylmer (QC) 1955 Dr. E.O. Turner, Fredericton GC, Fredericton (NB) 1994 W. Keith Gray, Toronto Hunt Club, Toronto (ON) 1912 J.T. McCall, Royal Montreal GC, Dixie (QC) 1956 James P. Anglin, Q.C., Royal Montreal GC, Dixie (QC) 1995 Jacques Nols, Kanawaki GC, Montreal (QC) 1913 A.H. Campbell, Toronto GC, Toronto (ON) 1957 C. Ross Somerville, London Hunt & CC, London (ON) 1996 N. Douglas Ross, Q.C., Belvedere G&WC, Charlottetown (PE) 1914 C.E. Read, Royal Ottawa GC, Aylmer (QC) 1958 John M. Blair, St. Charles CC, Winnipeg (MB) 1997 F.A. (Al) Macatavish, Elmhurst G&CC, Winnipeg (MB) 1915–19 F.A. Rolph, Lambton G&CC, Toronto (ON) 1959 Gordon B. Taylor, Kanawaki GC, Kahnawake (QC) 1998 F. Gordon Coyle, Mississaugua G&CC, Mississauga (ON) 1920 D.R. Brown, Beaconsfield GC, Montreal (QC) 1960 V.C. Holdroyd, Rosedale GC, Toronto (ON) 1999 Worden Teasdale, Markland Woods G&CC, Toronto (ON) 1921 Paul Myler, Hamilton GC, Ancaster (ON) 1961 H.C. Lyle, Capilano G&CC, Vancouver (BC) 2000 Donald Griffiths, Point Grey G&CC, Vancouver (BC) 1922 R.C.H. Cassels, K.C., Toronto GC, Toronto (ON) 1962 Dr. J.E. Leddy, Riverside CC, Saskatoon (SK) 2001 Roger Archambault, Beloeil GC, Beloeil (QC) 1923 George S. Lyon, Lambton G&CC, Toronto (ON) 1963 Albert Rolland, Le Club Laval-sur-le-Lac, Laval (QC) 2002 Harry Zuzak, Coloniale G&CC, Beaumont (AB) 1924 S.B. Gundy, Rosedale GC, Toronto (ON) 1964 W. Arthur Johnston, St. Charles CC, Winnipeg (MB) 2003 James A. Grant, Royal Montreal GC, Montreal (QC) 1925 W.E. Matthews, Royal Ottawa GC, Aylmer (QC) 1965 R. Bruce Forbes, Brantford G&CC, Brantford (ON) 2004 David D. Shaw, Riverside G&CC, Saint John (NB) 1926 C.A. Bogert, Toronto GC, Toronto (ON) 1966 E. Duncan Millican, Royal Montreal GC, Montreal (QC) 2005 James Halliday, Victoria GC, Victoria (BC) 1927 W.W. Walker, Royal Montreal GC, Dixie (QC) 1967 Phil Farley, Scarboro G&CC, Toronto (ON) 2006 Wayne C. Petersen, Paradise Canyon Golf Resort, Lethbridge (AB) 1928 Major W.D. Wilson, Hamilton G&CC, Ancaster (ON) 1968 J.A. Swanson, Elmhurst G&CC, Winnipeg (MB) 2007 Garry West, Bayview G&CC, Thornhill (ON) 1929 C.E. Harvey, Elmhurst G&CC, Winnipeg (MB) 1969 Ray Getliffe, Royal Montreal GC, Montreal (QC) 2008 Andrew Cook, Markland Woods GC, Etobicoke (ON) 1930–31 Alfred Collyer, Knowlton GC, Knowlton (QC) 1970 J. Campbell McLean, Capilano G&CC, Vancouver (BC) 2009 Tom McCarthy, Ashburn GC, Halifax (NS) 1932 W.H. Plant, Mississaugua G&CC, Mississauga (ON) 1971 Patrick C. Osler, Toronto GC, Toronto (ON) 2010 Jack McDonald, Rivershore Golf Links, Kamloops (BC) 1933 C.W. Jackson, St. Charles CC, Winnipeg (MB) 1972 Cecil Vineberg, Hillsdale G&CC, Montreal (QC) 2011 Karen Rackel, Q.C., Highlands GC, Edmonton (AB) 1934 George H. Forster, Beaconsfield GC, Montreal (QC) 1973 George C. Hevenor, Sr., Summit G&CC, Toronto (ON) 2012 Diane Dunlop-Hébert, Mount Bruno, Montréal (QC) 1935 E.C. Gould, Brantford GC, Brantford (ON) 1974 Richard H. Grimm, Mississaugua G&CC, Mississauga (ON) 2013 Michael P. Carroll, Q.C., Point Grey GC, Vancouver (BC) 1936 Robert Jacob, K.C., Elmhurst G&CC, Winnipeg (MB) 1975 J.D. Heywood, Riverside CC, Saskatoon (SK) 2014 Douglas Alexander, London Hunt & CC, London (ON) 1937 John I. Rankin, Beaconsfield GC, Montreal (QC) 1976 Dave Shea, Richelieu Valley GC, Ste-Julie de Vercheres (QC) 2015 Paul McLean, Coppinwood GC, Goodwood (ON) 1938 Lt.-Col. Claude Brown, London Hunt & CC, London (ON) 1977 T. George Armstrong, Lambton G&CC, Toronto (ON) 2016-17 Roland A. Deveau, Q.C., Clare G&CC, Church Point (NS) 1939 J. Ernest Savard, Le Club Laval-sur-le-Lac, Laval (QC) 1978 R. Bruce Bailey, Calgary G&CC, Calgary (AB) 2018 Leslie Dunning, Earl Grey GC, Calgary (AB)
GOLF CANADA STAFF (as of December 31, 2018)
EXECUTIVE TEAM Robert Ratcliffe Head Coach, National Junior Boys Squad Laurence Applebaum Chief Executive Officer Director, Next Generation Performance Matt Wilson Garrett Ball Chief Financial Officer / Ethics Commissioner Head Coach, National Junior Girl’s Squad Bill Paul Chief Championship Officer Emily Phoenix Coordinator, High Performance Sport John Sibley Chief Commercial Officer Jeff Thompson Chief Sport Officer PROFESSIONAL CHAMPIONSHIPS Bill Paul Chief Championship Officer FINANCE & ADMINISTRATION Bryan Crawford Tournament Director, RBC Canadian Open Garrett Ball Chief Financial Officer / Ethics Commissioner Mary Beth McKenna Assistant Tournament Director, RBC Canadian Open Dawn Anderson Executive Assistant to the CEO / Board Administrator Ryan Paul Tournament Director, CP Women’s Open Alison Richmond Director, Human Resources Paige Ottaviano Assistant Tournament Director, CP Women’s Open Danielle Clouse Coordinator, Human Resources Kris Boomhouwer Manager, Operations Natalie Henein Senior Accountant Stephanie Charteris Intermediate Accountant COMMERCIAL Kathy Oliver Front Desk Coordinator John Sibley Chief Commercial Officer Meggan Gardner Director, Heritage Services Craig Sharp Managing Director, Partnerships Kelsey Clayton General Manager, Calgary Golf Centre Jeff Payne Director, Partnerships Krista Nielsen Assistant Manager, Calgary Golf Centre Whitney Gorges Manager, Partnerships Jason Diplock Managing Director, Sales MEMBER SERVICES & SPORT PROGRAMS Michael Evans Director, Sales CP Women’s Open Jeff Thompson Chief Sport Officer Dave Kay Director, Sales RBC Canadian Open Dave Stockton Director, Member Services & High Performance Sport Lauren Andrews Senior Manager, Sales RBC Canadian Open Blair Armitage Regional Director, Member Services, Western Canada Ken Vezina Manager, Sales RBC Canadian Open Guy Bernier Regional Director, Member Services, Québec & Ottawa Valley Steve Metzger Manager, Sales RBC Canadian Open Jeffrey Hutt Regional Director, Member Services, Atlantic Canada Christiane Beauchamp Supervisor, Sales Centre Ryan Logan Regional Director, Member Services, Ontario Peter Kirkpatrick Managing Director, Marketing Taylor Stevenson Manager, Member Services Marianne Baker Director, Brand Jordan Vizena Senior Coordinator, Member Services Paula Bradford Manager, Design Maketo Binzangi Coordinator, Member Services Brendan Peters Coordinator, Marketing and Design Brian Doherty Coordinator, Member Services Ljubomir Gorscak Director, CRM & Business Analysis Craig Loughry Director, Handicap & Course Rating Jeremy Avery Coordinator, Web Development Adam Helmer Director, Rules, Competitions & Amateur Status Dan Pino Director, Communications Dan Hyatt Manager, Rules & Competitions Terry Lenyk Manager, Media & Public Relations Adam Cinel Coordinator, Competitions Tyler Costigan Manager, Content & Community Akash Patel Coordinator, Competitions Philippe Riel Manager, Translation Kelly Dawdy Manager, Future Links Golf in Schools Adam Hunter Manager, Grow the Game GOLF CANADA FOUNDATION Nathalie Mihalek Coordinator, Grow the Game Martin Barnard CEO, Golf Canada Founation Derek Ingram Head Coach, Men’s National Amateur & Young Pro Squads Joelle Efford Director, Development & Events Tristan Mullally Head Coach, Women’s National Amateur & Young Pro Squads Ailey Jarvis Coordinator, Scholarship Program & Events
2018 Annual Report 3 BOARD OF DIRECTORS Leslie Dunning, President, AB (Officer) Charlie Beaulieu, 1st Vice President, QC (Officer) Liz Hoffman, 2nd Vice President, ON (Officer) Roland Deveau, Past President, NS (Officer) David Atkinson, Director at Large, BC Adam Daifallah, Director at Large, QC Dale Jackson, Director at Large, BC Rob MacDonald, Director at Large, MB David McCarthy, Director at Large, ON Susan MacKinnon, Chair, Provincial Council, AB Tom Sears, Chair, Governors Council, ON Laurence Applebaum, Chief Executive Officer, ON
Back Row, L-R: Susan MacKinnon, David McCarthy, David Atkinson, Dale Jackson, Rob MacDonald, Adam Daifallah, Tom Sears Front Row, L-R: Laurence Applebaum, Roland Deveau, Leslie Dunning, Charlie Beaulieu, Liz Hoffman
GOVERNORS COUNCIL Tom Sears, Chair, ON Kelly Roberts, ON Barbara Allan, ON Doug Roxburgh, BC Diane Barabé, QC Dan Sabourin, BC Paul Beaudry, AB Herb Schlotter, AB Gordon Campbell, ON Paul Schofield, QC Allison Chisholm, NB Laura Small, SK Jim Clark, ON Richard Smith, SK Shirley d’Entremont, NS Jean Stone-Séguin, ON Diane Drury, QC Kay Thompson, NL Don MacKay, ON Steven Young, AB Nick Marrone, ON Jeff Thompson, Staff Rep,ON Kevin O’Donovan, MB Christian Osborne, ON
Back Row, L-R: Herb Schlotter, Doug Roxburgh, Allison Chisholm, Barbara Allan, Richard Smith, Jim Clark, Don MacKay, Steven Young, Paul Schofield, Kelly Roberts, Dan Sabourin Front Row, L-R: Paul Beaudry, Shirley d’Entremont, Jean Stone-Seguin, Diane Barabé, Tom Sears, Jeff Thompson, Diane Drury, Kay Thompson, Gordon Campbell ABSENT: Nick Marrone, Kevin O’Donovan, Christian Osborne, Laura Small
PROVINCIAL COUNCIL Susan MacKinnon, Chair, Alberta Golf David Acker, Nova Scotia Golf Association Delbert Betnar, Golf Saskatchewan Ken Casey, Golf Newfoundland Labrador John Gallinger, Golf Ontario Tom Hendershot, Golf New Brunswick Peter Major, Alberta Golf Vince Mariani, Golf Manitoba Brenda McIlwaine / Ryan Garrett, PEI Golf Association Barry Petrachenko, British Columbia Golf Marcel Paul Raymond, Golf Québec Jeff Thompson, Golf Canada
Back Row, L-R: Peter Major, Marcel Paul Raymond, Jeff Thompson Front Row, L-R: Delbert Betnar, Brenda McIlwaine, Susan MacKinnon, Tom Hendershot ABSENT: David Acker, Ken Casey, John Gallinger, Ryan Garrett, Vince Mariani, Barry Petrachenko
4 Golf Canada Doug Alexander, ON James A. Grant, QC Wayne C. Petersen, AB HONORARY LIFE Roger Archambault, QC W. Keith Gray, ON Karen Rackel, Q.C., AB Sheila Bentley, BC Donald Griffiths, BC Keith Rever, SK GOVERNORS Dr. Douglas G. Brewer, NB James Halliday, BC N. Douglas Ross, Q.C., PE Harold Brownstein, QC Peter J. Hope, NS David D. Shaw, NB Past Presidents of both Golf Canada and the Michael P. Carroll, Q.C., BC Robert G. Long, ON Worden Teasdale, ON (former) Canadian Ladies Golf Association. Peggy Colonello, MB F.A., Al Macatavish, MB Garry West, ON Andrew Cook, ON Paul McLean, ON Findlay S. Young, BC Thelma Coutts, AB Grace McCann, ON Harry Zuzak, AB Mary Drummie, QC Tom McCarthy, NS Diane Dunlop-Hébert, QC Jack McDonald, BC Patricia Edwards, NB Carole Mix, NB Audrey Gordon, BC Jacques Nols, QC
COMMITTEES
Standing Committees Investment Handicap & Course Rating Tom Sears, Chair, ON Richard Smith, Chair, SK Audit & Risk Roger Beach, ON Allison Chisholm, NB Rob MacDonald, Chair, MB Peter Boronkay, BC Bob Heath, ON Gordon Campbell, ON Gordon Campbell, ON Kathy Hill, ON Jason Hammerschmidt, ON Tom Forestell, ON Bill MacMillan, NS Dale Jackson, BC Rob MacDonald, MB Herb Schlotter, AB David McCarthy, ON Kelly Roberts, ON Judy Sefton, SK Leo Perri, ON Robin Roopchan, ON Nancy Spineti Delle-Donne, QC Tom Sears, ON Garrett Ball, Staff Rep, ON Karen Vanzella, BC Laura Small, SK William Chyz (consultant), ON Craig Loughry, Staff Rep, ON Garrett Ball, Staff Rep, ON David Kaufman (consultant), ON
Heritage Services Compensation Nominating Barbara Allan, Chair, ON Charlie Beaulieu, Chair, QC Doug Alexander, Chair, ON Adam Daifallah, QC Roland Deveau, NS Roland Deveau, NS Dave Daye, ON Leslie Dunning, AB Paul McLean, ON Ian Giles, ON Liz Hoffman, ON Marcel Paul Raymond, QC Diane Imrie, ON Laurence Applebaum, Staff Rep, ON Pat Thompson, BC Garry McKay, ON Kay Thompson, NL Marlene Streit, ON Governance Laurence Applebaum, Staff Rep, ON Meggan Gardner, Staff Rep, ON Charlie Beaulieu, Chair, QC David Atkinson, BC Operating Committees Rules & Amateur Status Paul Beaudry, AB Diane Barabé, Chair, QC Amateur Competitions Diane Drury, QC Tom Forestell, ON Liz Hoffman, Chair, ON Susan MacKinnon, AB Dale Jackson, BC Helen Banning, ON Marcel Paul Raymond, QC Brian Lee, SK Diane Barabé, QC Herb Schlotter, AB Jack McDonald, BC Rob Laing, BC Laura Small, SK Dan Sabourin, BC Dan Sabourin, BC Dawn Anderson, Staff Rep, ON Jean Stone-Séguin, ON Herb Schlotter, AB Garrett Ball, Staff Rep, ON John Turner, ON Paul Schofield, QC Bruce Watson, NL Susan White, BC Tom Zariski, AB Human Resources Steven Young, AB Adam Helmer, Staff Rep, ON David Atkinson, Chair, BC Adam Helmer, Staff Rep, ON Barbara Allan, ON Roger Beach, ON Sport CGHF Selection Committee Allison Chisholm, NB Doug Roxburgh, Chair, BC Sandra Post (Honoured Member), Chair, ON Jim Clark, ON Matt Allen, ON Graham Cooke (Honoured Member), QC Shirley d’Entremont, NS Glenn Cundari, ON Warren Crosbie, ON Diane Drury, QC Doug Hastie, BC Ted Fletcher, QC Dan Sabourin, BC Graham Hill, ON Tiffany Gordon, AB Jean Stone-Sequin, ON Liz Hoffman, ON Tom McCarthy, NS Alison Richmond, Staff Rep, ON Stephen Norris, AB Garry McKay, ON Danielle Clouse, Staff Rep, ON Kelly Roberts, ON Deborah Pyne, BC Pat Thompson, BC Lorne Rubenstein (Honoured Member), ON Jeff Thompson, Staff Rep, ON Harry Brotchie, MB Meggan Gardner, Staff Rep, ON
2018 Annual Report 5 PRESIDENT’S REPORT
This year, I attended activities from modernized Rules of Golf education sessions, to Future Links events, to amateur and professional championships, to the Canadian Golf Hall of Fame Induction Ceremony. Golfers, at every level, were a joy to meet, watch and celebrate. But the highlight of the year was being present for Brooke Henderson’s historic win at the CP Women’s Open in Regina! Thank you to the thousands of volunteers and professionals who conducted national, provincial, local and club activities, as well as hundreds of charity events from coast to coast. Special thanks to our “behind the scenes” volunteer course raters, museum personnel and the many volunteers and staff serving in support, administrative and committee functions.
Financial accountability is a priority for Golf Canada, and we are proud of the strong year-over-year operating results in 2018. Unfortunately, the downturn in financial markets near the end of the fiscal year had a significant effect on our investment portfolio. This underscores the importance of Golf Canada’s progress towards operational profitability.
The Golf Canada Board of Directors is pleased to have our CEO Laurence Applebaum present the strategic plan for 2019-2022 during the Annual Meeting. Laurence, and the management team, are to be commended on the collaborative process undertaken in developing this road map. Thanks to all of our stakeholders that took the time to provide valuable input throughout the creation of this plan.
Thank you to provincial associations, club boards, club managers, course owners, superintendents and PGA of Canada professionals, for your contributions to increasing participation and excellence in golf. The media professionals, who so capably share the stories of golf, must also be recognized for their impact on growing the game. Much appreciation is due to Sport Canada, the Canadian Olympic Committee, the R&A, USGA, LPGA Tour, PGA TOUR and Golf Canada Foundation for their support. Tremendous gratitude to our title sponsors and partners at RBC and Golf is a sport rooted in respect: Respect for our fellow golfers, the CP; the commitment and leadership shown by your companies and your environment, the rules of golf and the course itself. Golf is also built people, many who serve as volunteers at the Opens, is inspiring. on values such as honesty, self-discipline, inclusion, health, friendship Thank you for the privilege of serving as Golf Canada’s 114th President. and fun. These values are some of the reasons so many people, myself included, love the game.
Today there is more diversity in golf than ever before. Outreach, to many of the diverse groups of golfers across the country, has been a good first step in building relationships, learning how we can support their priorities and sharing how everyone can be part of Golf Canada. Leslie Dunning, CPA, CMA
Golf in Schools is fundamental to inclusion, as it provides young President people the opportunity to be exposed to the sport. When schools are Golf Canada “adopted”, and students have the opportunity to visit golf facilities, they are more likely to become life-long golfers. Increasing the number of women and girls engaged in golf, as players, competitors, volunteers and professionals in the golf industry, is another important inclusion goal that Golf Canada and many other stakeholders are working towards together.
6 Golf Canada Brooke Henderson l 2018 CP Women’s Open Champion
2018 Annual Report 7 CEO REPORT
than Brooke’s historic victory at Wascana Country Club in Regina. Eight Canadians enter 2019 with PGA TOUR status—Adam Hadwin, Mackenzie Hughes, Corey Conners, Nick Taylor, Ben Silverman and David Hearn with Adam Svensson and Roger Sloan earning their card via the Web.com Tour. On the LPGA Tour, Brooke will be joined by Alena Sharp, Brittany Marchand and A.C. Tanguay along with Team Canada star, Jaclyn Lee, who turned pro after earning her card at Q-School this past fall.
Golf Canada continues to invest in our high-performance program, including athletes and coaches. The evolution of the Team Canada program features the centralized training of Junior Squad athletes and coaches at our National Training Centre at Bear Mountain Resort in Victoria.
Our national amateur championships continue to provide an environment that promotes participation and development at the highest level. My sincere congratulations and appreciation go out to the forty-three individual, team and inter-provincial champions, as well as our proud host member clubs and the thousands of volunteers who give their time in support of golf in their community.
Sport programs are increasing participation in golf through a variety On many levels, 2018 was one of the most successful years in Golf of engaging programs including our internationally recognized junior Canada’s recent history and I am incredibly proud of the progress and program—Future Links—which is currently running in 691 facilities results achieved by the entire organization. nationwide. Golf in Schools added 316 new sites in 2018 to bring We experienced incredible momentum with particular highlights at our the total number of participating schools to 3,748 across Canada. Championships including dynamic champions in Brooke Henderson and In partnership with the Provincial Golf Associations and the PGA of Dustin Johnson, exciting future venues, deepened partner engagements, Canada, our Get Linked strategy saw 131 facilities receive 271 total and new leadership appointments that have both events on strong grants to connect students with golf facilities running Future Links footing moving forward. Our goal is to elevate our National Open junior golf activities in their community. Championships to premier internationally recognized tournaments that In collaboration with provincial, national and international partners, are must attend events for players, spectators and corporate partners. Golf Canada is committed to providing resources and services to drive Together with RBC and the PGA TOUR, we proudly announced a new value and growth to our entire membership. We are pleased that 1015 chapter for the RBC Canadian Open beginning in 2019, highlighted of existing member clubs have been converted to the Gold Membership by the move to an exciting June date—leading into the U.S. Open. model at the end of our 2018 fiscal. As we work to deliver enhanced Management has worked with RBC on a refreshed vision for the value to member golfers and facilities, we are tracking towards 100% RBC Canadian Open as a premier, sports and entertainment festival Gold Membership conversion among our 1,390 member facilities by marking the start of summer in the Greater Toronto Area, and a renewal the end 2019. Another key priority continues to be the finalization of our extended partnership for the next five years. Similarly, the of Golf Canada’s go-to-market strategy to engage public golfers and CP Women’s Open in August will continue to be pillar of excellence facilities over the next three years. thanks to a five-year title sponsorship extension with Canadian Pacific The development and roll-out of the new modernized Rules of Golf and the LPGA Tour that runs through 2023. including education and certification was a significant undertaking Our 2019 Professional Championships will be conducted at historic in partnership with the R&A and USGA. The integrated launch of the venues, with the prestigious Magna Golf Club in Aurora, Ont., hosting the new Rules Modernization in 2019 has started very strongly. Golf’s CP Women’s Open and Hamilton Golf and Country Club to host the first governing bodies are now working collaboratively on the next major of two (2019 and 2023) RBC Canadian Opens over the next five years. initiative, the World Handicap System. Throughout the upcoming year, A priority focus for 2019 will be securing host venues for both National Golf Canada will be an integral part of the development, testing and Championships for 2020, 2021 and 2022. implementation, which takes effect January 1, 2020.
There is great excitement behind the talented athletes representing As outlined in our enclosed financial statements, management is Canada on the global golf stage and no result was more captivating pleased to report one of our most successful financial years in the last
8 Golf Canada decade at the net operations level with a surplus to our annual budget, Committee and our proud member clubs. We are also encouraged by before investments and amortization, recognizing a $603K improvement collaboration with international partners such as the R&A, USGA, PGA in the net operating deficit compared to 2017 results. TOUR, LPGA Tour and Augusta National Golf Club on shared initiatives to increase participation and excellence in golf. The strong acceleration of revenue growth was a major highlight of 2018 as we strive to develop world-class properties and integrated marketing Diversity, access and inclusion remain priorities for the global golf platforms that enhance Golf Canada’s brand, while delivering sustainable, community and Canada is well positioned as a best practice example profitable revenues to maximize our reinvestment into the sport. In in leading these important changes. All golf enthusiasts deserve addition to title partners RBC and CP, we are pleased to have premier to participate and compete in a safe sport environment, free from partners such as Acushnet, Steam Whistle, Levelwear, adidas Canada, harassment, abuse or discrimination, regardless of gender, race, religion, Acura, the City of Hamilton, Sport Canada, Golf Town and others support language, age and ability. Golf Canada is fully aligned with the important Golf Canada’s reinvestment objectives. We are also appreciative of work of Sport Canada in this critical issue and encourage all those support from the Golf Canada Foundation, which contributed more than connected with our sport—athletes, parents, coaches, staff, volunteers $1.3M in grants to support high performance, grassroots programming, and club representatives—to maintain an open dialogue to ensure a safe post-secondary scholarships and sport development initiatives. and supportive environment, without exception, across the Canadian golf landscape. The development of our membership strategy to engage public players and facilities, paired with a deeper commercialization of the platforms I am proud of what Golf Canada achieved across many areas of our and channels that comprise Golf Canada’s Digital Network, will elevate operation and look forward to sharing our new Strategic Plan (2019- engagement with the golf consumer, enrich the conversation with our 2022). A most sincere thank you to the golfers, member clubs, athletes, membership base and deliver enhanced Premium Sponsor benefits. volunteers, sponsors and passionate stakeholders who have contributed to Golf Canada and the overall health of our sport. Although encouraged by the significant year-over-year improvement to Golf Canada’s Net Operating Results and overall revenue growth, the Q4 Golf is in great shape and we look forward to advancing the sport and capital markets plummet resulted in disappointing investment income driving Golf Canada’s vision to be a world leader in golf. compared to 2017. Management will continue to evaluate every area of our operation for revenue growth and efficiencies to lessen the impact of investment income volatility on our organization.
Establishing deeply connected and mutually beneficial relationships with Canadian and international partners is a priority for Golf Canada. We continue to drive sport and industry initiatives through integrated work Laurence Applebaum with the Provincial Golf Associations, PGA of Canada, NGCOA Canada, Chief Executive Officer the club managers, superintendents, Sport Canada, the Canadian Olympic Golf Canada
2018 Annual Report 9 14.3 Billion 2,298 golf facilities in Canada 84% of Canadian golfers 5.7 Million golfers in Canada 314,000 total number of Golf Canada members at 1,390 member facilities economic impact of golf in Canada (ranking it second in the world in total supply) are public players
approximate number of honoured members Canadians Canadians number of rounds competitors at elected to the Canadian earn PGA TOUR earn LPGA Tour played annually Golf Canada Golf Hall of Fame: status status 60,000,000 in Canada 2,936 Competitions 2 Gail Graham, A.V. Macan 8 5 number of Facebook likes Twitter followers Instagram followers page views on 20,500 @GolfCanada 32,500 @GolfCanada 5,800 @TheGolfCanada 12,840,598 golfcanada.ca Brooke Henderson 175 Golf Fore the Cure presented captures the CP Women’s Open, 16 by Subaru events conducted nationally becoming the first Canadian to win since Jocelyne Bourassa in 1973 37,000 14,000 Golf Fore the Cure number of Canadian charitable presented by Subaru participants events conducted at golf $ courses each year that help 6.7 Million raised to date to raise approximately in support of breast cancer research Canadians competed in the CP Women’s Open at $ Wascana Country Club 533 Million Henderson repeats new schools adopted into as Canadian Press Future Links, driven by Acura & Postmedia 316 Golf in Schools Female Athlete 7,265,904 total schools of the Year scores posted to 3,748 golfcanada.ca 451,440 total students 20 691 golf facilities registered 733 mobile clinics 235,624 facilities took part in RBC Canadian Open number of Canadians who awarded PGA TOUR’s 117 Junior Skills Challenge “BEST IN-CLASS track an official handicap ELEMENT” 117 juniors participated for The Rink national 96,000 in programming $ certified PGA of Canada professionals 1.3 Million Level 4 635 programming awarded through funding from Rules Officials newly trained Community the Golf Canada Foundation 78 Golf Coaches countries represented in-school visits conducted by Dustin Canadians competed in the at the Canadian Men’s PGA of Canada professionals 2018 RBC Canadian Open at and Women’s Amateur 182 Glen Abbey Golf Club Championships (combined) Johnson countries represented wins across various professional golf at the World Junior Girls tours by Young Pro Squad members since wins the RBC Canadian Open the program launched in 2014 Championship 35 10 Golf Canada 14.3 Billion 2,298 golf facilities in Canada 84% of Canadian golfers 5.7 Million golfers in Canada 314,000 total number of Golf Canada members at 1,390 member facilities economic impact of golf in Canada (ranking it second in the world in total supply) are public players approximate number of honoured members Canadians Canadians number of rounds competitors at elected to the Canadian earn PGA TOUR earn LPGA Tour played annually Golf Canada Golf Hall of Fame: status status 60,000,000 in Canada 2,936 Competitions 2 Gail Graham, A.V. Macan 8 5 number of Facebook likes Twitter followers Instagram followers page views on 20,500 @GolfCanada 32,500 @GolfCanada 5,800 @TheGolfCanada 12,840,598 golfcanada.ca Brooke Henderson 175 Golf Fore the Cure presented captures the CP Women’s Open, 16 by Subaru events conducted nationally becoming the first Canadian to win since Jocelyne Bourassa in 1973 37,000 14,000 Golf Fore the Cure number of Canadian charitable presented by Subaru participants events conducted at golf $ courses each year that help 6.7 Million raised to date to raise approximately in support of breast cancer research Canadians competed in the CP Women’s Open at $ Wascana Country Club 533 Million Henderson repeats new schools adopted into as Canadian Press Future Links, driven by Acura & Postmedia 316 Golf in Schools Female Athlete 7,265,904 total schools of the Year scores posted to 3,748 golfcanada.ca 451,440 total students 20 691 golf facilities registered 733 mobile clinics 235,624 facilities took part in RBC Canadian Open number of Canadians who awarded PGA TOUR’s 117 Junior Skills Challenge “BEST IN-CLASS track an official handicap ELEMENT” 117 juniors participated for The Rink national 96,000 in programming $ certified PGA of Canada professionals 1.3 Million Level 4 635 programming awarded through funding from Rules Officials newly trained Community the Golf Canada Foundation 78 Golf Coaches countries represented in-school visits conducted by Dustin Canadians competed in the at the Canadian Men’s PGA of Canada professionals 2018 RBC Canadian Open at and Women’s Amateur 182 Glen Abbey Golf Club Championships (combined) Johnson countries represented wins across various professional golf at the World Junior Girls tours by Young Pro Squad members since wins the RBC Canadian Open the program launched in 2014 Championship 35 RBC CANADIAN OPEN CHAMPION Glen Abbey Golf Club Oakville, ON July 26-29
Dustin Johnson
CANADIAN UNIVERSITY/COLLEGE CHAMPIONSHIP CANADIAN WOMEN’S AMATEUR CHAMPIONSHIP CANADIAN JUNIOR GIRLS CHAMPIONSHIP Chilliwack Golf Club, Marine Drive Golf Club, Beach Grove Golf Club, Chilliwack, BC, May 29-June 1 Vancouver, BC, July 24-27 Tsawwassen, BC, July 31-August 3
Céleste Dao, Notre-Dame-de-l’Île-Perrot, QC Juvenile: MEN’S Yealimi Noh, Concord, CA Emily Zhu, Richmond Hill, ON Team: University of the Fraser Valley Cascades Inter-provincial: Inter-provincial: Medallist: Daniel Campbell British Columbia Québec (University of the Fraser Valley Cascades)
CANADIAN JUNIOR BOYS CHAMPIONSHIP CANADIAN MEN’S AMATEUR CHAMPIONSHIP Medicine Hat Golf & CC, Duncan Meadows GC & Pheasant Glen GR, Medicine Hat, AB, July 30-August 2 Duncan / Qualicum Beach, BC, August 6-9
WOMEN’S Team: University of British Columbia Thunderbirds Medallist: Avril Li Zach Bauchou, Forest, VA (University of British Columbia Thunderbirds) Inter-provincial: Québec Christopher Vandette, Beaconsfield, QC Juvenile: Christopher Vandette, Beaconsfield, QC Inter-provincial: CANADIAN MEN’S MID-AMATEUR CHAMPIONSHIP Alberta Victoria Golf Club, Victoria, BC, August 21-24
Joseph Deraney, Belden, MS Mid-Master: Todd Fanning, Winnipeg, MB 12 Golf Canada Inter-provincial: Ontario CP WOMEN’S OPEN CHAMPION Wascana Country Club Regina, SK August 23-26
Brooke Henderson
CANADIAN WOMEN’S MID-AMATEUR & SENIOR CHAMPIONSHIP WORLD JUNIOR GIRLS CHAMPIONSHIP Lookout Point Country Club, Camelot Golf & CC, Fonthill, ON, August 28-30 Cumberland, ON, September 11-14
PACIFIC CHAMPIONSHIP Bear Mountain Resort – Valley Course, Victoria, BC, May 11-13 Boys: Cole Wilson, Kelowna, BC Team: Italy Girls: Monet Chun, Richmond Hill, ON
Mid-Amateur: ONTARIO CHAMPIONSHIP Sue Wooster, Australia Otter Creek Golf Club, Mid-Master: Otterville, ON, May 25-27 Sue Wooster, Australia Boys: Laurent Desmarchais, Longueuil, QC Senior: Girls: Taylor Kehoe, Strathroy, ON Sue Wooster, Australia Super-Senior: Jackie Little, Procter, BC QUÉBEC CHAMPIONSHIP Inter-provincial: Club de Golf Lachute, Ontario Medallist: Atthaya Thitikul (Thailand) Lachute, QC, June 8-10
Boys: Robbie Latter, Mississauga, ON Girls: Emily Romancew, Pierrefonds, QC CANADIAN MEN’S SENIOR CHAMPIONSHIP FUTURE LINKS FALL SERIES EAST CHAMPIONSHIP Gowan Brae Golf & CC, Club de golf Owl’s Head, Bathurst, NB, September 4-7 Mansonville, QC, September 14-16 PRAIRIE CHAMPIONSHIP Portage Golf Club, Portage La Prairie, MB, June 15-17 Boys: Wesley Hoydalo, Selkirk, MB Girls: Sydney Scraba, Calgary, AB
WESTERN CHAMPIONSHIP Highwood Golf & Country Club, High River, AB, June 1-3 Boys: Kai Iguchi, Banff, AB Boys: Yuqi Liu, Thornhill, ON Girls: Taylor Stone, Calgary, AB Girls: Hailey McLaughlin, Markham, ON
ATLANTIC CHAMPIONSHIP Brady Exber, Las Vegas, NV FUTURE LINKS FALL SERIES EAST CHAMPIONSHIP Twin Rivers Golf Course, Super-Senior: Sunshine Coast Golf & Country Club, Port Blandford, NL, July 17-19 Doug Roxburgh, Vancouver, BC Roberts Creek, BC, September 28-30 Boys: Owen Mullen, Truro, NS Inter-provincial: Girls: Haley Baker, Halifax, NS British Columbia
Boys: Ilirian Zalli, Burnaby, BC Girls: Jennifer Gu, West Vancouver, BC 2018 Annual Report 13 TEAM CANADA
YOUNG PRO SQUAD
Jared du Toit Stuart Macdonald Albin Choi Taylor Pendrith Kimberley, BC Vancouver, BC Toronto, ON Richmond Hill, ON
Augusta James Jennifer Ha Brittany Marchand Anne-Catherine Tanguay Bath, ON Calgary, AB Orangeville, ON Quebec City, QC
NATIONAL SQUAD
Hugo Bernard Chris Crisologo Josh Whalen Joey Savoie Mont-Saint-Hilaire, QC Richmond, BC Napanee, ON La Prairie, QC
Grace St-Germain Jaclyn Lee Maddie Szeryk Naomi Ko Ottawa, ON Calgary, AB London, ON Victoria, BC
JUNIOR SQUAD
Christopher Vandette Johnny Travale Nolan Thoroughgood Peyton Callens Thomas Critch Beaconsfield, QC Stoney Creek, ON Victoria, BC Langton, ON Hamilton, ON
Céleste Dao Monet Chun Ellie Szeryk Alyssa DiMarcantonio Notre-Dame-de-l’Île-Perrot, QC Richmond Hill, ON London, ON Maple, ON
14 Golf Canada Céleste Dao l Team Canada
2018 Annual Report 15 FINANCIAL ANALYSIS The 2018 fiscal year-end concluded with a significant improvement Unfortunately, this risk came to fruition in fiscal 2018 as capital in Golf Canada’s Results– a $603K improvement in the annual Net markets plummeted in the two months prior to our October 31 Operating Deficit compared to 2017 and a 24% net gain compared fiscal year-end, causing the fair value of our investment portfolio to our planned 2018 budget. Golf Canada endeavours to materially to decrease by $943K (net of distributions) in this period alone. strengthen its financial stability which has now seen three consecutive Golf Canada’s investment income decreased by $1,619K compared years of positive results versus budget in our Net Operating Deficit. to 2017. This was the lead factor which led to the final $982K
Management continues to develop and execute on strategies to ensure Deficiency of Revenues over Expenses recognized in 2018. the long-term health of Golf Canada. Our partners at the Provincial Nonetheless, there were several qualitative successes of which we Golf Associations, volunteers, stakeholders, and staff deserve to be are proud to report: commended for their collaboration and valued contributions which • the Senior Leadership Team of Golf Canada was enhanced with the hiring of Chief have resulted in such improved operating results in 2018. Commercial Officer, John Sibley as well as the hiring of new RBC Canadian Open Tournament Director, Bryan Crawford and appointment of Ryan Paul as new Continuing to improve the Net Operations financial ratio was an CP Women’s Open Tournament Director;
important objective in 2018. During the year, the Board of Directors • a long-term title sponsorship and Team Canada premier partnership with Canadian approved a revision to the internally-imposed Financial Mandate which Pacific Railway was renewed through 2023 with meaningful growth along with the selection of Magna Golf Club in Aurora as host of the 2019 CP Women’s Open; now requires that the Net Operating Deficit be reduced to breakeven by 2022. This will help to increase the use of our investment portfolio • a new date, purse, title sponsorship fee and enhanced multi-faceted premier partnership was signed with RBC and the PGA TOUR in conjunction with the capital for long-term strategic initiatives and provide security if volatility RBC Canadian Open through 2023;
in global capital markets affects our annual investment income. • a dynamic, multi-year City of Hamilton agreement along with securing a coveted spot in the R&A’s Open Qualifying Series for the RBC Canadian Open;
ANNUAL NET OPERATING DEFICIT • the Golf Canada National Training Centre and centralized program for the (IN THOUSANDS) Development Squad at Bear Mountain Golf Resort in Victoria was successfully launched; 2014 2015 2016 2017 2018 • enhanced sponsorship agreements with Acushnet Canada, Golf Town and the aforementioned RBC, were renewed for broad and digitally integrated Golf Canada -$773 umbrella sponsorships; -$1,051 -$1,376 • our partners at the Golf Canada Foundation also recognized a very successful fiscal -$1,703 year in which $1,306K of grants were issued – a 52% increase over 2017. -$2,453
2018 FINANCIAL RESULTS Further details on all major aspects of Golf Canada’s core operations are outlined below. Golf Canada has a responsibility to operate and support program initiatives that create awareness, increase participation and drive excellence in the sport. We have a duty to MEMBER SERVICES support and provide benefit to members, golfers and facilities, and provide them with Member dues are an integral source of funding for Golf Canada and our partners at tools and resources to drive participation. the Provincial Golf Associations. The net contribution of Member Services is dedicated to offset the cost of delivering our direct programs and services as the National Sport Notwithstanding our Amateur Championships, we are proud to report that all facets Federation. of our Member Services and direct programs recognized improvements in their net contribution compared to 2017. The net contribution of our program support also In 2018, we put forth a concerted effort to transition member facilities into our improved by a healthy $421K and our aggregate Professional Championships net enhanced membership model which is ripe with benefits for both the facility and the contribution also improved by $127K. The Golf Canada Calgary Centre, hampered by golfer. A tremendous and resounding collaboration with our Provincial Association harsh weather in the spring and fall, only recognized a surplus of $28K – a decrease of partners has helped convert over 1,015 facilities nationally. As at October 31, 2018, $137K compared to 2017. Golf Canada’s full-paid membership is approximately 270,000 (2017 – 274,750). Golf Canada is transitioning away from the previously offered free (‘bronze’) Primarily based on the 3.3% growth in total revenue, a trend which has continued membership (approximately 44,000 individuals) with a strategy to convert those consecutively since 2014, we are proud of the programs, services and championships at this level to full-paid members as part of our public-player strategy. During the we delivered in 2018. year, we completed a strategy focused on targeting and engaging the mass number of public-players in Canada which will be initiated in 2019. We believe that there TOTAL REVENUE are a significant number of these golfers in Canada that will embrace the enhanced (IN THOUSANDS) membership value proposition. We are particularly proud of the incident protection member benefit introduced in 2018 which can support an individual Gold member with up to $6,000 on an annual basis for incident protection. In 2018, Golf Canada $39,824 paid out $115K in claims under this benefit to our members. $38,563 $37,214 The new benefits are only associated with our Gold membership program, sold in $35,424 conjunction with our Provincial Golf Association partners. With living wages growing $33,671 across the country and additional benefits continually being enhanced or added, we will continue to review our long-term pricing strategy to help ensure the net contribution 2014 2015 2016 2017 2018 of Member Services is a healthy contributor to support programs and services. In 2018,
16 Golf Canada through volume rebates on the scale of the benefits provided and increased market Funding for Golf Canada’s high-performance program comes from four sources—Sport prices that were implemented to account for a variety of factors, we increased our net Canada, participation fees, corporate partnerships, and a significant investment from contribution to $2.5M (up from $2.4M in 2017). the Golf Canada Foundation. The program’s increased investment in 2018 provided Golf Canada with the opportunity to increase the number of athletes in the program After an allocation of program support expenses, based on a pro-rata estimate of by 18% but most importantly, launch the National Training Centre at Bear Mountain activities and resources, the total gross revenues generated from Member Services Resort in Victoria, B.C. The National Training Centre provides Team Canada with were directed to programs and services apportioned amongst strategic pillars as year-round access to dedicated high-performance training facilities and amenities. follows: 63% on growing participation (including gold benefit costs, member services, The first-ever centralization of the Junior Squads and coaching staff in Victoria from and Future Links, among others); 24% on ensuring excellence (amateur championships January through April allowed the athletes to significantly increase contact time with and high-performance programming); 12% to expand capacity (rules and amateur our high-performance staff while attending a local school. We believe that the National status, handicap and course rating); and 1% toward fostering interaction in the sport. Training Centre will be a significant contributor to supporting the long-term podium pathway for our athletes. HOW ARE MEMBER DUES USED? AMATEUR CHAMPIONSHIPS Funding for Amateur Championships comes from several sources—Sport Canada, player entry fees, corporate partnerships and municipal governments, along with EXPANDING 13% CAPACITY funding from the R&A to aid in conducting the World Junior Girls Championship. 24% 1% INDUSTRY This segment includes the operation of Golf Canada’s eight national amateur INTERACTION competitions, the World Junior Girls Championship, the Toyota World Junior Boys Qualifier, and the Future Links, driven by Acura Junior Championships. In 2018, our GROW THE GAME INITIATIVES costs increased by 3% compared to 2017 as we introduced two additional Future Links Championships which were conducted in the fall. In addition, 2018 was Canada’s HIGH PERFORMANCE 63% rotational opportunity to host the Toyota World Junior Boys Championship which was & EXCELLENCE contested at Bear Mountain Resort.
Continued investment, strong player recruiting, and support from municipalities has helped us grow the Women’s National Amateur Championship and World Junior Girls GRASS ROOTS PROGRAMS Championship to high A-strength events in the world amateur golf ranking system. Funding for grass roots programs is derived from five primary sources—participation PROFESSIONAL CHAMPIONSHIPS fees, grants, Sport Canada, corporate partnerships and donations. In 2018, with the financial assistance of Indigenous and Northern Affairs Canada and operating support The 2018 CP Women’s Open was a spectacular moment in the history of Canadian golf from the PGA of Canada and University of Ottawa, we conducted a pilot program in with Brooke Henderson becoming the first Canadian in 45 years to win the National the Alexander First Nation community in Alberta. The pilot was primarily focused on Open. This was the first time the CP Women’s Open (or any major professional golf Life Skills development and utilizing the Future Links Golf in Schools program—two championship) had ever been to Saskatchewan, and the City of Regina, the Regina components of our Future Links, Driven by Acura programming, to enhance community/ Hotel Association, and Tourism Saskatchewan were tremendous hosts and supporting parent involvement in Alexander. A total of 691 facilities (up from 560 in 2017) partners. In 2018, the inaugural CP Women’s Leadership Summit on Tuesday of registered with Golf Canada to run one or more of the several Future Links junior golf tournament week was successfully introduced as a pillar component of the event components, including, Girls Club, Learn to Play, and the Junior Skills Challenge. going forward. The CP Has Heart campaign raised $2M in support for the Jim Pattison Children’s Hospital while Golf Canada continued to recognize commercial growth for Our partners and stakeholders in the Golf in Schools component of Future Links see the 4th consecutive year in total revenues for the event. tremendous value in using schools to introduce the sport to children. In particular, the Get Linked Initiative provides grants to facilities or PGA of Canada Professionals for The 2018 RBC Canadian Open was once again held at Glen Abbey Golf Club in hosting field trips with schools or visiting the school and assisting the facilitation of Oakville, Ont., returning to the historic course for the 30th time. The hockey-themed Golf in Schools. Golf Canada’s continued investment towards Golf in Schools would 7th hole, dubbed “The Rink” was enhanced and is now a must-see component of not be possible without the continued support of individual donors and corporate the onsite experience – we are proud to announce that it was named “Best-in-Class partners, particularly Acura, Golf Town, Golf Ontario, ClubLink, The Canadian Seniors Element” across all PGA TOUR events in 2018. Golf legend Lee Trevino was the Golf Association and the Golf Canada Foundation. In addition, 271 Get Linked Initiative honoured guest and keynote speaker at the RBC Hall of Fame Day celebration on grants were issued in 2018 helping to increase the total schools participating in Golf in Tuesday of tournament week where Gail Graham and the late, A.V. Macan were Schools to 3,748 (up from 3,427). inducted into the Canadian Golf Hall of Fame. Team RBC member Dustin Johnson capped a fantastic event by winning his first RBC Canadian Open. The momentum of the Junior Skills Challenge continued with an exciting National Event hosted on the opening weekend of the RBC Canadian Open at Glen Abbey Golf The aggregate surplus of the RBC Canadian Open and CP Women’s Open increased by Club. A total of 24 participants from across the country competed in three divisions $126K compared to 2018. before crowning our national Junior Skills Challenge champions. Among the many THE GOLF CANADA CALGARY CENTRE success stories, Team Canada member Jaclyn Lee, who recently turned professional and earned full-status to compete on the LPGA Tour in 2019, competed in the Junior In addition to serving as a revenue source, Golf Canada’s Calgary Centre provides an Skills Challenge National Event six years ago. Junior Skills Challenge is an important opportunity to test and run golf development programs; provides access for Calgary- introduction to competition for up and coming Canadian junior golfers. based schools and high-performance athletes from Alberta; and increases Western- Canada brand awareness for Golf Canada. The facility operates a 9-hole short course; Finally, the Golf Fore the Cure presented by Subaru, was enhanced in 2018 with an a driving range with a double-decker hitting stall structure that includes space for up to additional investment from our partners at the Canadian Cancer Society as well as 60 patrons; indoor golf simulators; and a vast teaching academy supported by PGA of Adidas Canada. The program, which was hosted at 175 facilities with over 14,000 Canada professionals. The driving range stalls are heated which permits practice and female participants, collectively donated $423,000 dollars to our charitable recipients training year-round. — the Canadian Cancer Society and the Quebec Breast Cancer Foundation. Like other facilities in the area, the Calgary Centre endured dreadful weather in 2018. HIGH PERFORMANCE (TEAM CANADA) The year started with snow and bone-chilling temperatures delaying the opening of the This investment supported the development of seventeen athletes on Golf Canada’s par-3 and putting courses by 45 days compared to our 2017 opening date. Despite this, national men’s and women’s Junior and Amateur Squads that proudly represented revenues only decreased 1% but expenses increased 9% due to the implementation of Canada at many international golf championships as well as on the biggest national several new strategic initiatives, pro shop enhancements, and the effect of the Alberta stage during the RBC Canadian Open and CP Women’s Open. Our Young Pro Squad government’s increased minimum wage legislation. The net result for the year was a supported eight up and coming athletes (financial, coaching, and other resources) who surplus of just $28K, a decrease of $137K compared to 2017. have recently turned professional to help them with their transition. Golf Canada was especially pleased that among the many athlete successes in 2018, both the men’s and women’s world amateur teams finished inside the top 10 in 2018.
2018 Annual Report 17 INVESTMENTS The Investment Policy Statement provides guidance for our investment decisions. The Audit & Risk Committee completes an annual review with management to ensure The portfolio comprises a combination of bond funds, equity funds and alternative that appropriate risk mitigation processes are in place to maximize utility of Golf investment products. The investment mix is structured to produce the desired returns Canada’s resources with an acceptable level of risk inherent in our operations. The to meet current and future liabilities, with a robust risk management system in place. principal risks above may differ from year to year; however, management ensures that The Investment Committee and management obtain input on a regular basis from appropriate mitigation activities remain in place. Golf Canada’s professional advisors in making decisions relating to the portfolio. The Golf in Canada is also indirectly impacted by macro-economic factors. The sport is mandate of the Investment Committee includes a review of the portfolio holdings on a dependent upon discretionary recreation spending by consumers and corporations as quarterly or more frequent basis. well as supply and demand relative to courses, ranges, facilities, and manufacturers. An The inherent volatility of global investment markets is a principal risk of Golf Canada extended recession could materially affect golf in Canada and our operations. A decline and an appropriate mix of assets has been established to ensure long-term stability in the economic environment could impact disposable income that may have an adverse in the income produced by the assets. The investment income from the portfolio impact on operating revenues through membership and would negatively impact our continues to be used and relied upon to contribute to the delivery of our various partners, sponsors, and corporate supporters. Golf participation and rounds played programs and services. Management has identified the need to reduce dependency annually is also directly impacted by weather conditions from coast to coast. on investment income to help achieve Golf Canada’s desired annual operating results – breakeven or better. We expect volatility, but cannot predict the timing thereof, FINANCIAL OUTLOOK AND OPPORTUNITIES therefore, Golf Canada maintains a conservative portfolio mix with an average return A new strategic plan for Golf Canada will be launched in 2019. Notwithstanding the target of 6% (net of fees) over a five-year period (2018 actual five-year average return: unfortunate timing of the capital markets decline just prior to our fiscal year-end, we 4.8%; 2017 – 6.1%). are proud of the results that we have recognized over the past three years. In 2018, Golf Canada improved its net operating deficit by $603K and is committed to reducing One component of the Financial Mandate set by the Board of Directors states that the annual operational deficit to zero by 2022, before amortization and investment Golf Canada must maintain a minimum market value of $25M in assets, consisting income. This will provide additional capital in our investment portfolio which will be of the investment portfolio, the Golf Canada Calgary Centre and any other income used to support the priorities inherent in our long-term strategic plan. In addition, producing assets, of which $10M must be in liquid holdings. As at October 31, 2018, the added growth and sustainability will provide comfort that the component of our the investment portfolio balance itself was $24.2M (compared to $24.6M in 2017) Financial Mandate requiring at least $25M in investments will be achievable without and the net book value of the Golf Canada Calgary Centre was approximately $1.4M. compromising programming or services. Therefore, this component of the Financial Mandate has been met. Golf Canada is committed to ensuring the restrictions remain satisfied going forward while also Golf Canada has been fortunate to partner with some of Canada’s iconic brands in the strengthening Golf Canada’s fiscal responsibility. Royal Bank of Canada and Canadian Pacific Railway – these companies deserve to be recognized for their generosity in support of Golf Canada’s programs, their impact on During the final two months of our fiscal year, Golf Canada was affected by two of the the growth of the game and the respective legacy they are building for Canadian golf. worst months in the capital markets over the last decade causing the Corporation to Additionally, the Golf Canada Foundation, their Board of Directors and their Trustees recognize a deficit after amortization and investment income. Another component should also be recognized. The Foundation continues to be a major contributor to Golf of the Financial Mandate requires the Corporation to operate on a breakeven basis, Canada’s programming, predominantly, the Young Pro Program and National Training after amortization and investment income. As a result, this component of the Financial Centre. In 2018, the Foundation contributed $1,306K (compared to $858K in 2017) Mandate was not met in 2018. The net result of investment income recognized during in scholarships and grants to many recipients in Canada. There are very few brands as the year was just $89K (0.36%), a significant decline of $1.6M compared to 2017 (7.20%). powerful as RBC and CP in Canada. Along with the Foundation, they are meaningful partners to Golf Canada. SOURCES OF FUNDING (Average for 2017 – 2018) In 2019, Golf Canada will announce exciting enhancements to both of our professional 4% championships. The Hamilton Golf & Country Club (RBC Canadian Open) and Magna 5% Golf Club (CP Women’s Open) will host our National Open Championships. The City of PROFESSIONAL HIGH 9% CHAMPIONSHIPS PERFORMANCE Hamilton is directing a significant contribution to Golf Canada over the next five-years (NET) 1% and new festivities to be announced as part of the 2019 RBC Canadian Open would AMATEUR INVESTMENT not be possible without their support. We are confident that these enhancements will CHAMPIONSHIPS INCOME 12% 43% increase profitability of the events providing Golf Canada with additional resources to GOLF CANADA MEMBER augment programming and services. CALGARY CENTRE SERVICES (NET) 17% Golf Canada is demonstrating with the help of our Provincial Association partners that GRASS ROOTS OTHER PROGRAMS the revised membership model has earned interest and garnered acceptance amongst PROGRAMS & SERVICES 9% facilities in Canada. A great portion of the past few years has been spent ensuring a smooth transition of member facilities to the new suite of benefits. Management remains optimistic on converting potential Golf Canada members from the vast PRINCIPAL RISKS OF THE CORPORATION number of avid public players included amongst Canada’s 5.7M golfer population. The focus in 2019 will begin to transition from club conversion to public player acquisition Golf Canada’s ability to deliver on the facets of our strategic plan may be affected by with strong belief that the enhanced public player program will ultimately increase risks and uncertainties. Management has implemented procedures to identify and participation, connection and revenues. manage significant brand reputation, operational, regulatory and financial risks. Golf Canada is committed to its Financial Mandate of operating on at least a breakeven The following section describes the principal immediate risks and uncertainties that basis as well as maintaining its asset base over $25M. As the National Sport Federation, have been identified that could have a material and adverse effect on the organization’s more than ever, Golf Canada is committed to deliver on our mission and objectives. financial mandate:
• A significant decrease in perceived lack of value in membership with Golf Canada or that our membership benefits do not resonate with facilities and their members
• The loss of a major title sponsor, particularly Canadian Pacific Railway or the Royal Bank of Canada. Alternatively, our authority as host organization of the LPGA Tour and PGA TOUR events is withdrawn by either professional body Robert MacDonald FCPA, FCA Garrett Ball CPA, CA • A natural disaster at the Golf Canada Calgary Centre, Golf Canada head office, Chair, Audit & Risk Chief Financial Officer Management Committee and Ethics Commissioner professional championship host club, or significant security crisis at any event or Golf Canada national championship
• Reliance on investment income in managing Golf Canada’s annual budget when December 8, 2018 significant volatility in global investment markets could arise
• Lack of strategic success or financial results that fall materially short of budget and/ or the Board of Director’s Financial Mandate
18 Golf Canada Tel: 905 639 9500 BDO Canada LLP Fax: 905 633 4939 3115 Harvester Road, Suite 400 Toll-free: 888 236 2383 Burlington ON L7N 3N8 Canada www.bdo.ca
Independent Auditor’s Report
To the Members of Golf Canada We have audited the accompanying financial statements of Golf Canada, which comprise the statement of financial position as at October 31, 2018, and the statements of revenue and expenses, changes in net assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Golf Canada as at October 31, 2018, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.
Other Matter The financial statements of Golf Canada for the year ended October 31, 2017 were audited by another auditor who expressed an unmodified opinion on those statements on December 8, 2017.
Chartered Professional Accountants, Licensed Public Accountants Burlington, Ontario December 13, 2018
BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.
2018 Annual Report 19 Statement of Financial Position As at October 31
Assets 2018 2017 Current Assets Accounts Receivable and Prepaid Expenses $ 6,258,942 $ 2,803,262 Receivable from the Golf Canada Foundation (Note 12) 1,127,926 1,159,730 7,386,868 3,962,992
Investments (Note 3) 24,170,063 24,568,303 Capital Assets (Note 4) 1,627,629 1,732,697 Intangible Assets (Note 5) 169,351 231,795 $ 33,353,911 $ 30,495,787
Liabilities Current Liabilities Bank Indebtedness (Note 6) $ 157,167 $ 910,610 Bank Facilities (Note 6) 1,260,000 500,000 Accounts Payable and Accrued Liabilities 5,206,267 1,656,738 Deferred Revenue 683,376 399,525 7,306,810 3,466,873
Net Assets Operating 26,047,101 27,028,914 $ 33,353,911 $ 30,495,787
Commitments (Note 9) Contingency (Note 11)
(See accompanying notes to financial statements)
On behalf of the Board:
Robert MacDonald, FCPA, FCA, Director and Audit and Risk Management Committee Chair
Leslie Dunning, CPA, CMA President
20 Golf Canada Statement of Changes in Net Assets Year ended October 31
2018 2017 Balance, beginning of year $ 27,028,914 $ 27,027,010 (Deficiency) / Excess of Revenues over Expenses (981,813) 1,904 Balance, end of year $ 26,047,101 $ 27,028,914
(See accompanying notes to financial statements)
2018 Annual Report 21 Statement of Revenues and Expenses Year ended October 31
2018 2018 2018 2017 2017 2017 Revenues Expenses Net Revenues Expenses Net Member Services, Program Revenues and Expenses Member Services $ 4,526,941 $ 1,979,262 $ 2,547,679 $ 3,901,682 $ 1,511,569 $ 2,390,113
Direct Program Revenues and Expenses Grass Roots Programs 1,346,153 1,337,831 8,322 1,149,783 1,180,760 (30,977) High Performance 1,777,410 1,806,891 (29,481) 1,460,525 1,525,460 (64,935) Amateur Championships 854,378 1,097,741 (243,363) 884,307 1,064,794 (180,487) Other Programs and Services 348,825 385,120 (36,295) 371,955 430,134 (58,179) Total Direct Program Revenues and Expenses 4,326,766 4,627,583 (300,817) 3,866,570 4,201,148 (334,578)
Program Support Revenues and Expenses Communications and Business Development - 1,090,052 (1,090,052) - 881,830 (881,830) Administration and Overhead (Note 8) 67,000 2,562,875 (2,495,875) 67,300 3,192,766 (3,125,466) Total Program Support Revenues and Expenses 67,000 3,652,927 (3,585,927) 67,300 4,074,596 (4,007,296)
Total Member Services, Program Revenues and 8,920,707 10,259,772 (1,339,065) 7,835,552 9,787,313 (1,951,761) Expenses
Other Operations Professional Championships 29,278,667 28,740,671 537,996 27,469,976 27,058,960 411,016 Golf Canada Calgary Centre 1,534,898 1,506,910 27,988 1,548,735 1,384,228 164,507 Total Other Operations Revenues and Expenses 30,813,565 30,247,581 565,984 29,018,711 28,443,188 575,523
Net Operating Results $ 39,734,272 $ 40,507,353 $ (773,081) $ 36,854,263 $ 38,230,501$ (1,376,238)
Investment Income and Amortization Total Investment Income (Note 3) 89,461 - 89,461 1,708,674 - 1,708,674 Amortization - 298,193 (298,193) - 330,532 (330,532)
(Deficiency) / Excess of Revenues over Expenses $ 39,823,733 $ 40,805,546 $ (981,813) $ 38,562,937 $ 38,561,033 $ 1,904
Sport Canada Funding (Note 7) Golf Canada Foundation (Note 12)
(See accompanying notes to financial statements)
22 Golf Canada Statement of Cash Flows Year ended October 31
Increase / (Decrease) in Cash 2018 2017
Operating activities (Deficiency) / Excess of Revenues over Expenses $ (981,813) $ 1,904 Amortization of Capital Assets 217,963 222,214 Amortization of Intangible Assets 80,230 108,318 Decrease / (Increase) in Fair Value of Investments 525,104 (1,210,601) (158,516) (878,165)
Net Change in Non-cash Working Capital Components Relating to Operations 409,505 813,807 250,989 (64,358)
Financing activity Use / (Repayment) of Bank Facilities 760,000 (470,000)
Investing activities (Purchase) / Redemption of Investments (net) (126,865) 588,714 Purchase of Capital Assets (112,895) (88,666) Purchase of Intangible Assets (17,786) (30,317) (257,546) 469,731
Increase / (Decrease) in Bank Indebtedness, During the Year 753,443 (64,627) Bank Indebtedness, Beginning of Year (910,610) (845,983)
Bank Indebtedness, End of Year $ (157,167) $ (910,610)
(See accompanying notes to financial statements)
2018 Annual Report 23 Notes to Financial Statements
As at October 31, 2018
1. Nature of Operations The Royal Canadian Golf Association, operating as Golf Canada (the Corporation), is incorporated without share capital under the laws of Canada and is a Registered Canadian Amateur Athletic Association under the Income Tax Act (Canada). Golf Canada is the National Sport Federation and governing body for golf in Canada as designated by the Government of Canada (Sport Canada). The Corporation is exempt from income tax and is a registered charity in accordance with the Income Tax Act (Canada).
2. Summary of Significant Accounting Policies (a) Basis of presentation These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. Accounting standards for not-for-profit organizations require entities to select policies appropriate for their circumstances from choices provided in the specific standards in Part III of the CPA Canada Standards and Guidance.
Each member of the Board of Directors of Golf Canada is also a member of the Golf Canada Foundation (the Foundation), a separate Registered Canadian Amateur Athletic Association that is exempt from income tax in Canada under the Income Tax Act (Canada). The Foundation’s mandate is to raise and grant funds for the advancement of golf in Canada. The Foundation’s results are not consolidated in these financial statements but have been disclosed in Note 12.
(b) Use of estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates as additional information becomes available in the future.
Estimates and assumptions are used when accounting for items such as write-down of capital and intangible assets, determination of useful lives of capital and intangible assets, and accrued liabilities.
(c) Financial instruments The Corporation initially measures its financial assets and liabilities at fair value when acquired or issued. Subsequently, all financial instruments are measured at fair value or amortized cost with subsequent changes in fair value recognized in the Statement of Revenues and Expenses.
Transaction costs on acquisition, sale or issue of financial instruments subsequently measured at fair value are expensed as incurred. Financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or redemption.
Financial assets and liabilities measured at amortized cost include accounts receivable, receivable from the Golf Canada Foundation, accounts payable and accrued liabilities, deferred revenue, and certain investments that are not traded in active markets. Investments are measured at fair value where quoted prices are available from active markets, otherwise fair values are estimated using a variety of valuation techniques and models. Investment income includes interest, dividends, realized gains/(losses), and net change in unrealized gains/(losses) for the year, less counsel and custodian fees.
24 Golf Canada Notes to Financial Statements
As at October 31, 2018
2. Summary of Significant Accounting Policies (Continued) (d) Capital assets and amortization Rates and bases of amortization applied to write-off the cost less estimated salvage value of capital assets over their estimated useful lives are as follows:
Computer Equipment 50%, declining balance Leasehold Improvements Straight line over the term of the lease Furniture and Equipment 25%, declining balance Golf Canada Calgary Centre Straight line over remaining years of the lease options
(e) Intangible assets and amortization Intangible assets are initially recognized and measured at cost. Intangible assets with finite useful lives are amortized over their useful lives. The amortization methods and estimated useful lives of intangible assets are as follows:
Website and Score Centre™ Development 33%, declining balance Customer Relationship Management System 33%, declining balance
(f) Revenue recognition Golf Canada follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Grants are recognized in revenue in the period for which the related expenses are incurred. Deferred revenue represents ticket and volunteer registration revenues relating to professional tournaments which have been received but not earned. Deferred revenue also includes cash received from government agencies for specified expenses and activities that will be incurred in the following fiscal year. Membership dues are recognized as revenue as fees become due. All other revenue is recognized upon completion of the particular tournament or event.
(g) Donated services The work of Golf Canada is dependent on the services of many volunteers at amateur and professional events as well as governance Councils and Committees. Since these services are not normally purchased by Golf Canada and because of the difficulty of determining their fair value, donated services are not recorded in the Statement of Revenues and Expenses.
(h) Impairment of long-lived assets When long-lived assets no longer have any long-term service potential to the Corporation, the excess of its net carrying amount over any residual value is recognized as an expense in the Statement of Revenue and Expenses.
(i) Foreign currency translation Foreign currency accounts are translated to Canadian dollars as follows: At the transaction date, each asset, liability, revenue or expense is translated to Canadian dollars by the use of the exchange rate in effect at that date. At October 31, monetary assets are translated into Canadian dollars using the exchange rate in effect at that date. The resulting foreign exchange gains and losses are recorded in the Statement of Revenues and Expenses.
2018 Annual Report 25 Notes to Financial Statements As at October 31, 2018
2. Summary of Significant Accounting Policies (Continued) (j) Financial instruments risk management (i) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for another party failing to discharge its obligation. The Corporation is subject to credit risk through trade receivables. Credit risk is minimized by dealing primarily with companies with strong financial positions. Golf Canada maintains provisions for potential credit losses and any such losses to date have been within management’s expectations. There have been no changes in this risk from the prior year.
(ii) Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Corporation conducts certain business in U.S. dollars and maintains a U.S. dollar bank account. At the statement of financial position date, Golf Canada held U.S. cash of $152,913 (2017 - $97,136) and had $229,985 (2017 - $590,762) in outstanding U.S. receivables. There have been no changes in this risk from the prior year.
(iii) Interest rate risk Interest rate risk the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Corporation is subject to interest rate risk through its bank facilities (Note 6) debt that bear interest based on the lender’s prime rate, which may vary from time to time. Certain of the Corporation’s investments (Note 3) are also subject to interest rate risk. Golf Canada manages this risk by investing in a diversified portfolio of assets in accordance with the Investment Policy Statement. There have been no changes in this risk from the prior year.
(iv) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Corporation is exposed to market fluctuations through its investments quoted in active markets. Market risk is the risk that the fair value of a financial instrument will fluctuate because of changes in those market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the markets. The Investment Committee controls risk management of the portfolio by assigning a risk classification to each holding within the portfolio and ensuring that appropriate diversification exists, guided by the Investment Policy Statement. There have been no changes in this risk from the prior year.
(v) Liquidity risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, Golf Canada will not have sufficient funds to settle a transaction on the due date; will be forced to sell financial assets at a value, which is less than what they are worth; or may be unable to settle or recover a financial asset. Golf Canada is exposed to this risk mainly in respect of its accounts payable and accrued liabilities, bank facilities and commitments. Golf Canada manages this risk by maintaining a portion of its invested assets in liquid holdings. There have been no changes in this risk from the prior year.
26 Golf Canada Notes to Financial Statements As at October 31, 2018
3. Investments (i) Financial Mandate The Board upholds a Financial Mandate with the objective for the Corporation to operate on at least a breakeven basis, after amortization and investment income, and maintain a minimum market value of $25,000,000 in the portfolio (including the Golf Canada Calgary Centre or other income producing assets) of which a minimum of $10,000,000 must be in liquid holdings. In 2018, the Board enhanced the Financial Mandate by requiring that the Corporation is to operate on a breakeven basis, before amortization and investment income by 2022. The Financial Mandate was not met for the year ended, October 31, 2018, as the Corporation recognized a deficit after amortization and investment income.
(ii) Governance The investment objectives and portfolio mix are in accordance with Golf Canada’s Investment Policy Statement approved by the Board. A copy of the Corporation’s Investment Policy Statement is made publicly available on our external website, www.golfcanada.ca. The Investment Committee and management obtain input on a regular basis from Golf Canada’s professional advisors in making decisions relating to the portfolio. The portfolio’s assets include a diversified mix of income, equity, and alternative class investment funds. The mandate of the Investment Committee includes a review of the portfolio holdings on a regular basis. As at October 31, the assets of the portfolio were measured as follows: 2018 2017 Investments Measured at Fair Value $ 22,639,606 $ 22,887,253 Investments Measured at Amortized Cost 1,530,457 1,681,050 $ 24,170,063 $ 24,568,303
(iii) Investment Income Investment income recognized in the Statement of Revenues and Expenses include the following: 2018 2017 Distributions $ 614,566 $ 498,073 (Decrease) / Increase in Fair Value of Investments (525,105) 1,210,601 $ 89,461 $ 1,708,674
4. Capital Assets 2018 2017 Accumulated Net Book Net Book Cost Amortization Value Value Computer Equipment $ 709,570 $ 624,259 $ 85,311 $ 78,282 Leasehold Improvements 724,767 452,942 271,825 284,487 Furniture and Equipment 430,513 322,679 107,834 131,082 Golf Canada Calgary Centre 4,123,307 2,960,648 1,162,659 1,238,846 $ 5,988,157 $ 4,360,528 $ 1,627,629 $ 1,732,697
2018 Annual Report 27 Notes to Financial Statements As at October 31, 2018
5. Intangible Assets 2018 2017 Accumulated Net Book Net Book Cost Amortization Value Value Website and Score CentreTM Development $ 385,110 $ 242,918 $ 142,192 $ 191,056 Customer Relationship Management System 96,520 69,361 27,159 40,739 $ 481,630 $ 312,279 $ 169,351 $ 231,795
6. Bank Indebtedness and Bank Facilities Bank indebtedness of $157,167 as at October 31, 2018 (2017 - $910,610) is comprised of $398,191 (2017 - $935,128) of outstanding payments that were more than Golf Canada’s bank account balances totaling $241,024 (2017 - $24,518).
As at October 31, 2018, the Corporation has a revolving demand facility of $1,500,000. As security, Golf Canada has pledged a portion of the investment portfolio against this facility (“Facility 1(a)”). $1,260,000 of this Facility 1(a) was drawn on as at October 31, 2018 (2017 - $500,000). Golf Canada also maintains an additional $500,000 revolving demand facility (“Facility 1(b)”) that is only available from December 1 to April 30 inclusive in each year. Both facilities are due upon demand and bear interest at a rate of bank prime plus 0.75%, which equates to 4.70% at October 31, 2018 (2017 – 3.95%). As at October 31, 2018, the Corporation is compliant with all conditions and general covenants of the facilities.
7. Sport Canada Funding As the National Sport Federation (NSF) for golf in Canada, the Corporation receives funding from the Government of Canada through Sport Canada’s Sport Support Program to enhance and advance the Canadian Sport Policy. Funding is aimed at developing our athletes and coaches at the highest international levels; providing sound technically-based golf programming for all golfers; increasing the number of Canadians from all segments of society involved in golf; and advancing Canadian interests and values in Canada and abroad.
Funding is granted on the basis of eligible expenditures that are incurred to contribute to the achievement of the objectives of the Canadian Sport Policy. Funding is provided annually throughout Sport Canada’s fiscal year (April 1 to March 31).
Management estimates the amount of eligible expenses that are incurred during the Corporation’s fiscal year and recognizes revenue from Sport Canada’s fiscal funding on a pro-rata accrual basis. Revenue has been allocated to Direct Program and Program Support Revenues on a pro-rata basis of total eligible expenditures. During the Corporation’s fiscal year, a total of $912,250 (2017 - $783,000) was recognized from Sport Canada.
Schedule A to these financial statements highlights the total cash funding provided by Sport Canada during their fiscal year ended, March 31, 2018 and the eligible expenditures incurred within the same Mainstream Program categories permitted by the Contribution Agreement for the Corporation’s fiscal year ended, October 31, 2018.
28 Golf Canada Notes to Financial Statements As at October 31, 2018
8. Allocation of Administration and Overhead Expenses 2018 2017 Building and IT Systems, Network and Applications $ 912,211 $ 968,698 Salaries, Benefits and Travel 1,357,402 1,152,173 Restructuring 22,363 838,202 Professional Fees, Insurance, and Bank Fees 377,827 424,276 Association Meetings 273,333 303,170 Postage, Courier and Other Costs 121,205 108,647 Net Tax Rebates, Recoveries and Donations (102,826) (229,363) Total Administration and Overhead Expenses 2,961,515 3,565,802 Allocation to Professional Championships (398,640) (373,036) Net Administration and Overhead Expenses $ 2,562,875 $ 3,192,766
During the year, Golf Canada incurred approximately $74,000 (2017 - $68,000) of administration and overhead expenses, on behalf of the Golf Canada Foundation. These expenses have not been charged to the Golf Canada Foundation.
9. Commitments The Corporation has entered into agreements to lease office and storage space (33% of the 2019 commitments), land for the Golf Canada Calgary Centre (44% of the 2019 commitments), office equipment, vehicles and machinery to various dates to 2024. Minimum annual payments under these lease agreements in aggregate and for the next five years and thereafter are due as follows:
2019 $ 232,130 2020 132,002 2021 120,802 2022 120,802 2023 120,802 Thereafter 23,236 Total $ 749,774
10. Employee Pension Plan As part of its employee compensation plan, the Corporation offers a registered defined contribution pension plan for eligible employees. Through this defined contribution plan, the Corporation makes matching contributions of 6%, up to a maximum of $3,500, on behalf of each eligible employee. During the year, the Corporation contributed $137,144 (2017 - $123,156) on behalf of its eligible employees.
The Corporation has no obligation in excess of the contributions discussed above, as it does not have any defined benefit retirement plans, nor does it provide any post-retirement medical benefits.
2018 Annual Report 29 Notes to Financial Statements As at October 31, 2018
11. Contingency From time to time, the Corporation may be named as a defendant in claims that arise in the ordinary course of business. Although it is difficult to predict the outcome of any such legal actions or claims, based on current knowledge and consultation with legal counsel, management does not expect the outcome of any of these matters, individually or in aggregate, to have a material adverse effect on the Corporation’s financial position. Should any uninsured losses result from the resolution of open claims, such losses will be charged to operations in the year of resolution.
12. Golf Canada Foundation The Foundation was established to raise and grant funds for the advancement of golf in Canada. The Foundation delivers this mandate through Scholarships and Grants. During 2018, the Foundation awarded a total of $1,306,000 in scholarships and grants (2017 - $858,000).
Foundation results have not been consolidated in Golf Canada’s Financial Statements. The only significant difference between the accounting policies followed by Golf Canada and the Foundation is that the Foundation follows the Restricted Fund method for accounting for contributions and Golf Canada follows the Deferral method. Financial Statements of the Golf Canada Foundation are posted publicly on their website, www.golfcanadafoundation.com. A summary of the audited financial statements of the Foundation as at October 31 and for the years then ended are as follows:
2018 2017 Financial Position Total Assets $ 2,894,750 $ 2,686,103 Total Liabilities 1,445,379 1,426,401 Total Net Assets $ 1,449,371 $ 1,259,702
Results of Operations Total Revenues $ 2,301,335 $ 1,647,404 (Loss) / Gain on Fair Value of Investments (30,915) 3,521 Total Expenses 2,080,751 1,525,542 Excess of Revenues over Expenses $ 189,669 $ 125,383
Cash Flows Cash (used in) / from from Operations $ (682,177) $ 148,815 Cash (used in) / from Investing Activity (32,735) 210,687 Cash from Financing Activity 190,845 63,272 (Decrease) / Increase in Cash $ (524,067) $ 422,774
The Receivable from the Golf Canada Foundation is settled on a periodic basis. Transactions between the two entities consist of reimbursement of expenses paid on behalf of the Foundation, grants paid to support Golf Canada programming, and licensing of assets. A total of $808,085 (2017 - $726,210) has been recorded in the Statement of Revenue and Expenses as revenue from the Foundation.
13. Comparative Figures Certain of the comparative figures included in these financial statements have been reclassified to conform to the presentation adopted for the current year.
30 Golf Canada Sport Canada Funding – Revenues and Expenses (unaudited) Year ended October 31 Schedule A
The following schedule highlights the total cash funding provided by Sport Canada during their fiscal year ending, March 31, 2018 under each of the mainstream contribution blocks of the Contribution Agreement signed between the two parties. Golf Canada recognizes Sport Canada’s funding on a pro-rata accrual basis while Schedule A represents the cash funding received from Sport Canada for the April 1, 2017 to March 31, 2018 Contribution Agreement.
The total expenses presented represent the eligible expenditures incurred by the Corporation within each contribution block for Golf Canada’s fiscal year ended, October 31, 2018. The eligible total expenditures are presented within Direct Program Expenses and Program Support Expenses of the Statement of Revenues and Expenses, including the percentage of funding to expenditures.
Sport Canada Expenses Funding Incurred Revenues and Expenses by Category General Administration $ 67,350 $ 1,030,744 Governance 29,000 341,174 Salaries, Fees and Benefits 237,000 3,199,537 Coaching Salaries and Professional Development 53,000 639,862 National Team Program 88,150 1,275,029 Official Languages 12,000 127,502 Operations and Programming 187,000 2,142,037 Enhanced Excellence 130,000 130,000 Next Generation Initiative 108,750 108,750
Total Revenues and Expenses $ 912,250 $ 8,994,635
2018 Annual Report 31 GIVE BACK TO THE GAME Consider making a donation today or leave a legacy and include golf in your estate planning. Learn more options to make an impact on the game you love by visiting golfcanadafoundation.com. REDONNEZ À VOTRE SPORT Envisagez de faire un don aujourd’hui ou léguez un héritage qui comprend le golf dans votre planification successorale. Apprenez-en plus quant aux options qui s’offrent à vous pour avoir un impact sur le sport que vous aimez, en visitant golfcanadafoundation.com/fr.
2018 Annual Report 3