2020 ANNUAL REPORT GOLF CANADA IS FULLY COMMITTED TO FOSTERING A SAFE SPORT ENVIRONMENT FOR GOLF.
All golf enthusiasts deserve to participate and has been appointed with a mechanism for internal compete in an environment free from harassment, and external access and we have the following abuse or discrimination, regardless of gender safe sport policies in place: identity or expression, race, religion, language, age and ability. • Recognition and Prevention of Harassment and Violence Policy Together with the PGA of Canada as proud • Recognition and Prevention of Abuse Policy signatories of the Responsible Coaching • Whistleblower Policy Movement pledge, Golf Canada supports the • Volunteer and Staff Screening Policy need for training and education platforms as well as enhanced policies and compliance • Code of Ethics procedures. • Code of Conduct for Players • Code of Conduct for Parents and Spectators Golf Canada is also proud to implement Respect Group training across our organization including Golf Canada is fully aligned with the important mandatory Respect in the Workplace for all staff work of Sport Canada in this critical issue and and corporate volunteers; Respect in Sport for encourage all those connected with our sport – all coaches and support staff; and Respect in athletes, parents, coaches, staff, volunteers and Sport for Parents for parents of National Team club representatives – to maintain an open athletes. These exceptional modules provide dialogue to ensure a safe and supportive the base training and education for our broader environment, without exception, across the organization. In addition, an Ethics Commissioner Canadian golf landscape.
2 Golf Canada PRESIDENTS 1896 Hon. George A. Drummond, Royal Montreal GC, Dixie (QC) 1941 W.S. Charlton, Point Grey GC, Vancouver (BC) 1981 Ralph Costello, Riverside CC, Saint John (NB) 1897 John Hamilton, Quebec GC, Québec (QC) 1942 C.H. Sclater, Hamilton G&CC, Ancaster (ON) 1982 John S. Marshall, Q.C., Hamilton G&CC, Ancaster (ON) 1898 Col. George A. Sweny, Toronto GC, Toronto (ON) 1943 M.R. Ferguson, Beaconsfield GC, Montreal (QC) 1983 Manual Bricker, Glendale G&CC, Winnipeg (MB) 1899 Lt.-Col. D.T. Irwin, Royal Ottawa GC, Aylmer (QC) 1944 Dr. A.W. Matthews, Mayfair G&CC, Edmonton (AB) 1984 Wm. A. Farlinger, F.C.A., Lambton G&CC, Toronto (ON) 1900 W.W. Watson, Royal Montreal GC, Dixie (QC) 1945 H.R. Frost, K.C., Thornhill GC, Thornhill (ON) 1985 James D. Bruce, Capilano G&CC, Vancouver (BC) 1901 Col. George A. Sweny, Toronto GC, Toronto (ON) 1946 J.A. Fuller, Royal Montreal GC, Dixie (QC) 1986 Dr. Douglas G. Brewer, Fredericton G&CC, Fredericton (NB) 1902 G.H. Balfour, Royal Montreal GC, Dixie (QC) 1947 George W. Lang, Westmount G&CC, Kitchener (ON) 1987 Thomas P. Wood, Derrick G&WC, Edmonton (AB) 1903 P.D. Crerar, Hamilton GC, Ancaster (ON) 1948 F.N. Robertson, Riverside G&CC, Saint John (NB) 1988 Harold Brownstein, Elm Ridge GC, Île Bizard (QC) 1904 Fayette Brown, Royal Montreal GC, Dixie (QC) 1949 R.C. Holbrook, Royal Montreal GC, Dixie (QC) 1989 Keith Rever, Wascana GC, Regina (SK) 1905 D.R. Wilkie, Toronto GC, Toronto (ON) 1950 C.W. Watson, St. George’s G&CC, Toronto (ON) 1990 Robert G. Long, Rosedale GC, Toronto (ON) 1906 Hon. George Perley, Royal Ottawa GC, Aylmer (QC) 1951 J. Gordon Bowers, Capilano G&CC, Vancouver (BC) 1991 Peter J. Hope, Brightwood G&CC, Dartmouth (NS) 1907 A.W. Austin, Lambton G&CC, Toronto (ON) 1952 Colin Rankin, Beaconsfield GC, Montreal (QC) 1992 Hugh G. Hallward, Royal Montreal GC, Montreal (QC) 1908 Dr. R.F. Ruttan, Royal Montreal GC, Dixie (QC) 1953 A.J. Mylrea, Rosedale GC, Toronto (ON) 1993 Findlay S. Young, Prince George G&CC, Prince George (BC) 1909 Col. George A. Sweny, Toronto GC, Toronto (ON) 1954 R.C. Borland, Calgary G&CC, Calgary (AB) 1994 W. Keith Gray, Toronto Hunt Club, Toronto (ON) 1910 A.W. Austin, Lambton G&CC, Toronto (ON) 1955 Dr. E.O. Turner, Fredericton GC, Fredericton (NB) 1995 Jacques Nols, Kanawaki GC, Montreal (QC) 1911 Hon. Justice G.F. Orde, Royal Ottawa GC, Aylmer (QC) 1956 James P. Anglin, Q.C., Royal Montreal GC, Dixie (QC) 1996 N. Douglas Ross, Q.C., Belvedere G&WC, Charlottetown (PE) 1912 J.T. McCall, Royal Montreal GC, Dixie (QC) 1957 C. Ross Somerville, London Hunt & CC, London (ON) 1997 F.A. (Al) Macatavish, Elmhurst G&CC, Winnipeg (MB) 1913 A.H. Campbell, Toronto GC, Toronto (ON) 1958 John M. Blair, St. Charles CC, Winnipeg (MB) 1998 F. Gordon Coyle, Mississaugua G&CC, Mississauga (ON) 1914 C.E. Read, Royal Ottawa GC, Aylmer (QC) 1959 Gordon B. Taylor, Kanawaki GC, Kahnawake (QC) 1999 Worden Teasdale, Markland Woods G&CC, Toronto (ON) 1915–19 F.A. Rolph, Lambton G&CC, Toronto (ON) 1960 V.C. Holdroyd, Rosedale GC, Toronto (ON) 2000 Donald Griffiths, Point Grey G&CC, Vancouver (BC) 1920 D.R. Brown, Beaconsfield GC, Montreal (QC) 1961 H.C. Lyle, Capilano G&CC, Vancouver (BC) 2001 Roger Archambault, Beloeil GC, Beloeil (QC) 1921 Paul Myler, Hamilton GC, Ancaster (ON) 1962 Dr. J.E. Leddy, Riverside CC, Saskatoon (SK) 2002 Harry Zuzak, Coloniale G&CC, Beaumont (AB) 1922 R.C.H. Cassels, K.C., Toronto GC, Toronto (ON) 1963 Albert Rolland, Le Club Laval-sur-le-Lac, Laval (QC) 2003 James A. Grant, Royal Montreal GC, Montreal (QC) 1923 George S. Lyon, Lambton G&CC, Toronto (ON) 1964 W. Arthur Johnston, St. Charles CC, Winnipeg (MB) 2004 David D. Shaw, Riverside G&CC, Saint John (NB) 1924 S.B. Gundy, Rosedale GC, Toronto (ON) 1965 R. Bruce Forbes, Brantford G&CC, Brantford (ON) 2005 James Halliday, Victoria GC, Victoria (BC) 1925 W.E. Matthews, Royal Ottawa GC, Aylmer (QC) 1966 E. Duncan Millican, Royal Montreal GC, Montreal (QC) 2006 Wayne C. Petersen, Paradise Canyon Golf Resort, Lethbridge (AB) 1926 C.A. Bogert, Toronto GC, Toronto (ON) 1967 Phil Farley, Scarboro G&CC, Toronto (ON) 2007 Garry West, Bayview G&CC, Thornhill (ON) 1927 W.W. Walker, Royal Montreal GC, Dixie (QC) 1968 J.A. Swanson, Elmhurst G&CC, Winnipeg (MB) 2008 Andrew Cook, Markland Woods GC, Etobicoke (ON) 1928 Major W.D. Wilson, Hamilton G&CC, Ancaster (ON) 1969 Ray Getliffe, Royal Montreal GC, Montreal (QC) 2009 Tom McCarthy, Ashburn GC, Halifax (NS) 1929 C.E. Harvey, Elmhurst G&CC, Winnipeg (MB) 1970 J. Campbell McLean, Capilano G&CC, Vancouver (BC) 2010 Jack McDonald, Rivershore Golf Links, Kamloops (BC) 1930–31 Alfred Collyer, Knowlton GC, Knowlton (QC) 1971 Patrick C. Osler, Toronto GC, Toronto (ON) 2011 Karen Rackel, Q.C., Highlands GC, Edmonton (AB) 1932 W.H. Plant, Mississaugua G&CC, Mississauga (ON) 1972 Cecil Vineberg, Hillsdale G&CC, Montreal (QC) 2012 Diane Dunlop-Hébert, Mount Bruno, Montréal (QC) 1933 C.W. Jackson, St. Charles CC, Winnipeg (MB) 1973 George C. Hevenor, Sr., Summit G&CC, Toronto (ON) 2013 Michael P. Carroll, Q.C., Point Grey GC, Vancouver (BC) 1934 George H. Forster, Beaconsfield GC, Montreal (QC) 1974 Richard H. Grimm, Mississaugua G&CC, Mississauga (ON) 2014 Douglas Alexander, London Hunt & CC, London (ON) 1935 E.C. Gould, Brantford GC, Brantford (ON) 1975 J.D. Heywood, Riverside CC, Saskatoon (SK) 2015 Paul McLean, Coppinwood GC, Goodwood (ON) 1936 Robert Jacob, K.C., Elmhurst G&CC, Winnipeg (MB) 1976 Dave Shea, Richelieu Valley GC, Ste-Julie de Vercheres (QC) 2016-17 Roland A. Deveau, Q.C., Clare G&CC, Church Point (NS) 1937 John I. Rankin, Beaconsfield GC, Montreal (QC) 1977 T. George Armstrong, Lambton G&CC, Toronto (ON) 2018 Leslie Dunning, Earl Grey GC, Calgary (AB) 1938 Lt.-Col. Claude Brown, London Hunt & CC, London (ON) 1978 R. Bruce Bailey, Calgary G&CC, Calgary (AB) 2019-20 Charlie Beaulieu, Club de golf le Mirage, Lorraine (QC) 1939 J. Ernest Savard, Le Club Laval-sur-le-Lac, Laval (QC) 1979 W. Len Goldson, Toronto GC, Toronto (ON) 1940 Frank H. Harris, Mississaugua G&CC, Mississauga (ON) 1980 Ralph M. Everson, Kanawaki GC, Kahnawake (QC)
Nathalie Mihalek Coordinator, Grow the Game (AS OF DECEMBER 31, 2020) GOLF CANADA STAFF Derek Ingram Head Coach, Men’s Amateur & Young Pro Squad Tristan Mullally Head Coach, Women’s Amateur & Young Pro Squad EXECUTIVE TEAM Robert Ratcliffe Head Coach, National Junior Squads Laurence Applebaum Chief Executive Officer Jennifer Greggain Coach, National Junior Squads Tracy Paradis Executive Assistant to the CEO / Board of Directors Andrew Parr Assistant Coash, Men's Amateur Squad Garrett Ball Chief Operating Officer Emily Phoenix Manager, High Performance Sport Kevin Blue Chief Sport Officer Vanessa Morbi Chief Marketing Officer COMMERCIAL John Sibley Chief Commercial Officer John Sibley Chief Commercial Officer Alison Richmond Senior Director, Human Resources and Administration Craig Sharp Senior Director, Partnerships David Vladars Director, Partnerships FINANCE & ADMINISTRATION Lauren Andrews Senior Manager, Sales and Partnerships Garrett Ball Chief Operating Officer Whitney Gorges Manager, Partnerships Alison Richmond Senior Director, Human Resources and Administration Jason Diplock Senior Director, Sales Danielle Sferrazza Manager, Human Resources Dave Kay Director, Sales RBC Canadian Open Meggan Gardner Director, Heritage Services Steve Metzger Manager, Sales RBC Canadian Open Natalie Henein Director, Finance Stephen Nixon Manager, Sales RBC Canadian Open Lauren Skynner Senior Coordinator, Accounting Scott Hext Manager, Ticket Operations and Services Victoria MacNeill Coordinator, Accounting Bryan Crawford Tournament Director, RBC Canadian Open O'Neal Taylor Manager, Information Technology Mary Beth McKenna Assistant Tournament Director, RBC Canadian Open Kinda Jazeh Administrative Assistant / Front Desk Ryan Paul Tournament Director, CP Women's Open Dan Hyatt Assistant Tournament Director, CP Women's Open GOLF SERVICES & SPORT PROGRAMS Jessica Cheshire Tournament Coordinator, Professional Championships Brian Newton Manager, Operations Kevin Blue Chief Sport Officer Alex Vanderlaan Coordinator, Operations Blair Armitage Regional Director, Western Canada Patrick Rhéaume Regional Director, Quebec Jeff Hutt Regional Director, Atlantic Canada MARKETING & COMMUNICATIONS Adam Helmer Senior Director, Golf Services Vanessa Morbi Chief Marketing Officer Ryan Logan Director, Membership Marianne Baker Director, Brand Taylor Stevenson Senior Manager, Golf Services Paula Bradford Senior Manager, Design Brian Doherty Senior Coordinator, Golf Services Brendan Peters Coordinator, Marketing and Design Adam Olivastri Coordinator, Golf Services Ljubomir Gorscak Director, CRM and Business Analysis Hannah Elliott Coordinator, Golf Services Jeremy Avery Coordinator, Web Development Matt Mueller Coordinator, Golf Services Dan Pino Senior Director, Communications Shaun Hall Senior Manager, Handicap and Course Rating Terry Lenyk Manager, Media & Public Relations Adam Cinel Manager, Rules and Competitions Tyler Costigan Manager, Content & Community Akash Patel Manager, Rules and Competitions Philippe Riel Manager, Translation Adam Lloyd Coordinator, Competitions Adam Hunter Senior Manager, Grow the Game GOLF CANADA FOUNDATION Kelly Dawdy Manager, Grow the Game Martin Barnard Chief Executive Officer, Golf Canada Founation Kara Anthony Coordinator, Female Participation Joelle Efford Senior Director, Development & Events Justin McKenzie Coordinator, Grow the Game Ailey Jarvis Senior Coordinator, Operations 2020 Annual Report 3 BOARD OF DIRECTORS
Charlie Beaulieu, President, QC (Officer) Liz Hoffman, 1st Vice President, ON (Officer) Dale Jackson, 2nd Vice President, BC (Officer) Paul Beaudry, Director at Large, QC Allison Chisholm, Director at Large, NB Adam Daifallah, Director at Large, QC Shawn Evans, Director at Large, ON Patrick Kelly, Director at Large, BC Rob MacDonald, Director at Large, MB (Secretary) Susan MacKinnon, Chair, Provincial Council, AB David McCarthy, Director at Large, ON K. Rai Sahi, Director at Large, ON Jean Stone-Séguin, Chair, Governors Council, ON Laurence Applebaum, Chief Executive Officer, ON
Back Row, L-R: Patrick Kelly, Rob MacDonald, Alison Chisholm, David McCarthy, Adam Daifallah, Susan MacKinnon, Paul Beaudry Front Row, L-R: Jean Stone- Séguin, Dale Jackson, Charlie Beaulieu, Liz Hoffman, Laurence Applebaum ABSENT: Shawn Evans, Rai Sahi
GOVERNORS COUNCIL Jean Stone-Séguin, Chair, ON Kelly Roberts, ON David Atkinson, BC Doug Roxburgh, BC Helen Banning, ON Dan Sabourin, BC Diane Barabé, QC Herb Schlotter, AB Roger Beach, ON Wendy Sentner, NS Gordon Campbell, ON Richard Smith, SK Jim Clark, ON Kay Thompson, NL Diane Drury-Clarke, QC Steve Wedgwood, NL Tom Forestell, ON Susan White, BC Vince Mariani, MB Steve Young, AB Nick Marrone, ON Adam Helmer, Staff Rep, ON Marcel Paul Raymond, QC
Back Row, L-R: Steve Wedgewood, Kelly Roberts, Steven Young, Dan Sabourin, Nick Marrone, Richard Smith, Marcel Paul Raymond, Doug Roxburgh, David Atkinson, Roger Beach, Jim Clark, Adam Helmer Front Row, L-R: Tom Forestell, Helen Banning, Wendy Sentner, Kay Thompson, Jean Stone-Seguin, Diane Barabé, Diane Drury-Clarke, Herb Schlotter ABSENT: Gordon Campbell, Vince Mariani, Susan White
PROVINCIAL COUNCIL Susan MacKinnon, Chair, Alberta Golf Judy Astle, New Brunswick Golf Association Howard Atkinson, Golf Ontario Delbert Betnar, Golf Saskatchewan David Bolton, Nova Scotia Golf Association Ken Casey, Golf Newfoundland Labrador Melissa Castle, PEI Golf Association Michelle Collens, British Columbia Golf Peter Major, Alberta Golf Louise Patry, Golf Quebec Ken Warwick, Manitoba Golf Ryan Logan, Golf Canada Staff Rep, ON
Back Row, L-R: David Bolton, Delbert Betnar, Ryan Logan Front Row, L-R: Melissa Castle, Susan MacKinnon, Louise Patry ABSENT: Judy Astle, Howard Atkinson, Ken Casey, Michelle Collens, Peter Major, Ken Warwick
4 Golf Canada HONORARY LIFE GOVERNORS
Past Presidents of both Golf Canada Doug Alexander, ON Patricia Edwards, NB Paul McLean, ON and the (former) Canadian Ladies Golf Roger Archambault, QC Audrey Gordon, BC Carole Mix, NB Association. Sheila Bentley, BC James A. Grant, QC Jacques Nols, QC Dr. Douglas G. Brewer, NB W. Keith Gray, ON Wayne C. Petersen, AB Harold Brownstein, QC Donald Griffiths, BC Karen Rackel, Q.C., AB Michael P. Carroll, Q.C., BC James Halliday, BC Keith Rever, SK Andrew Cook, ON Peter J. Hope, NS N. Douglas Ross, Q.C., PE Thelma Coutts, AB Robert G. Long, ON David D. Shaw, NB Roland Deveau, Q.C., NS Al Macatavish, MB Worden Teasdale, ON Diane Dunlop-Hébert, QC Tom McCarthy, NS Garry West, ON Leslie Dunning, MB Jack McDonald, BC Harry Zuzak, AB
COMMITTEES
STANDING COMMITTEES OPERATING COMMITTEES Audit & Risk Human Resources Amateur Competitions Rules & Amateur Status Rob MacDonald, Chair, MB Paul Beaudry, Chair, QC Steve Young, Chair, AB Diane Barabé, Chair, QC Gordon Campbell, ON David Atkinson, Member, BC Helen Banning, ON Roland Deveau, NS Tom Forestell, ON Glenn Babcock, Member, ON Diane Barabé, QC Tom Forestell, ON Jason Hammerschmidt, ON Roger Beach, Member, ON Michelle Collens, BC Lee Griffin, ON Janet Heino, BC Diane Drury-Clarke, Member, QC Kristian Hammerback, MB Nancy Layton, QC Katie Mahon ON Grant Fraser, Member, ON Kira Meixner, ON Don MacDonald, MB David McCarthy, ON Dan Sabourin, Member, BC Herb Schlotter, AB Bruce Watson, NL Leo Perri, ON Judy Sefton, Member, SK Paul Schofield, QC Susan White, BC Kent Rodgers, NS Kay Thompson, Member, NL Wendy Sentner, NS Tom Zariski, AB Garrett Ball, Staff Rep, ON Danielle Sferrazza, Staff Rep, ON Adam Cinel, Staff Rep, ON Akash Patel, Staff Rep, ON
Investment Compensation CGHF Selection Committee Sport Adam Daifallah, Chair, QC Liz Hoffman, Chair, ON Ted Fletcher, Chair, QC Doug Roxburgh, Chair, BC Roger Beach, ON Charlie Beaulieu, QC Sandra Post (Honoured Member), Past-Chair, ON Matt Allen, ON Peter Boronkay, BC Dale Jackson, BC Harry Brotchie, MB Adam Chamberlain, NB J.F. Boucher, QC Rob MacDonald, MB Gary Cowan (Honoured Member), ON Jim Clark, ON Kelly Roberts, ON Laurence Applebaum, Staff Rep, ON Warren Crosbie, ON Patrice Clement, QC Robin Roopchan, ON Tiffany Gordon, AB Glenn Cundari, ON Wendy Sentner, NS Tom McCarthy, NS Stephen Norris, AB Governance Rose Yu, ON Garry McKay, ON Pat Thompson, BC Susan MacKinnon, Chair, AB Garrett Ball, Staff Rep, ON Deborah Pyne, BC Nicole Vandermade, ON Paul Beaudry, QC Cathy Sherk (Honoured Member), ON Adam Hunter, Staff Rep, ON Gordon Campbell, ON Nominating Meggan Gardner, Staff Rep, ON Emily Phoenix, Staff Rep, ON Adam Daifallah, QC Roland Deveau, Chair, NS Diane Drury-Clarke, QC Leslie Dunning, MB Patrick Kelly, BC Vince Mariani, MB Handicap & Course Rating Curtis Lahey, ON Nick Marrone, ON Herb Schlotter, Chair, AB Marcel Paul Raymond, QC Paul McLean, ON David Bolton, NS Steve Wedgwood, NL Pat Thompson, BC Allison Chisholm, NB Alison Richmond, Staff Rep, ON Laurence Applebaum, Staff Rep, ON Bob Heath, ON Kathy Hill, ON Wayne McWhirter, MB Judy Sefton, SK Richard Smith, SK Nancy Spineti Delle-Donne, QC Karen Vanzella, BC Shaun Hall, Staff Rep, ON
2020 Annual Report 5 REPORT OF THE PRESIDENT & CEO
The 2020 season was unlike any other in the history of our organization. The year was marked by disruption, cancellations, and uncertainty across every area of the business and our personal lives. Looking back, we are extremely proud of how the Board of Directors, the Executive Team and staff executed workloads, pivoted their focus, and supported the activities of the organization and our member clubs with a high degree of excellence.
The impact of the COVID-19 pandemic was significant. Both the RBC Canadian Open at St. George’s Golf and Country Club in partnership with Islington Golf Club in Toronto as well as the CP Women’s Open at Shaughnessy Golf and Country Club in Vancouver were postponed to 2021. The National Team program was temporarily grounded through early summer; Golf Canada National Amateur competitions were cancelled; the bulk of our sport programs were either scaled back or cancelled outright; and our staff have worked remotely from home since mid- March. Also impacted was the celebration of Golf Canada’s 125th anniversary as well as the postponement of the at facilities were impacted, there is optimism and momentum Tokyo Olympic Games to 2021. It was an unprecedented heading into 2021. and challenging year to say the least.
Supporting our member clubs in their great work to provide The silver lining of the pandemic was golf’s emergence a safe golf experience was the catalyst for Golf Canada and as the sport of summer—a safe recreational escape that the Golf Canada Foundation to launch the COVID-19 Golf supported the physical, mental, social, and family health of Relief Fund. In all, nearly $445,000 was raised to support so many Canadians. Despite a late start due to provincially 372 member facilities in the purchase of personal protective mandated health restrictions, scores posted to the Golf equipment for nearly 17,000 course staff as well as more Canada Score Centre saw a 7% increase—more than 7.8M than 8,000 subsidized rounds of golf for front line workers scores posted (7.3M in 2019) with monthly records set (1,950) and juniors (6,100). from June through October. Course data from the NGCOA Canada reflected an 18% lift in total golf rounds played Financial accountability remains a priority for Golf Canada year over year, inclusive of avid players, returning golfers and we are encouraged with the operating results outlined in and new enthusiasts to the game. our enclosed Financial Statements. Management and staff were diligent in expense management, and the support of Golf’s emergence in 2020 was reflected in the resilience our public and private sector partners was fundamental to of the owners, operators, PGA of Canada professionals, the organization’s survival in 2020. In particular, the Canada course superintendents, club managers and partner Emergency Wage Subsidy was critical, enabling Golf Canada associations who supported a safe return to the golf to maintain all full-time staff without layoffs or disruption course. A deep and profound thanks to the millions of to the business, allowing the organization to redirect staff golfers who found their escape through golf, adhering to resources to key cross-functional projects. comprehensive safety protocols at courses across Canada. There was tremendous innovation and collaboration to Golf Canada also benefited from the continued support of ensure a safe golf experience and while non-golf revenues RBC, CP, and our network of corporate sponsors as well
6 Golf Canada • The formation of Golf Canada’s Diversity & Inclusion Alliance tasked with developing an action plan to help create a more diverse, equitable and respectful environment within the organization and across our sport.
• Continued work in the important area of Safe Sport with polices and activities enacted within the organization and across our competitions.
• The collaborative efforts of the National Allied Golf Associations to launch the third iteration of the Canadian Golf Economic Impact Study.
To build on golf’s surge this past season, a national golfer retention marketing campaign will be a key area of focus for 2021. Golf Canada will also continue to focus investment on growing our base of golfers, especially among public recreational golfers. In collaboration with provincial, national, and international partners, Golf Canada will work to drive value and growth to our membership, a lift from which allows the organization to support golf services, develop more world-class athletes, and invest more in as partners such as Sport Canada, The PGA TOUR, The youth golf programming. R&A, and others who maintained their financial investment across key areas of the organization. Although we expect that the pandemic will continue to impact the business, management will make the Management navigated the interruption of the pandemic required adjustments across sport, championships, golf by pivoting the business towards a number of signature services, administration, high performance, coaching, activities including: heritage, marketing, and digital activities. This includes continued diligence toward revenue growth and expense • The launch of First Tee – Canada in partnership with management. Golf’s emergence through the global health First Tee, the PGA of Canada, Golf Canada Foundation, crisis brings optimism for 2021 and we wish the entire golf and other industry partners with three regional chapters community the best of health and success in converting this to launch in 2021. opportunity into reality.
• The launch and strong acceptance of a new Golf Canada mobile app enhancing the golfer experience and strength of our digital ecosystem.
• The formation of a Golf Industry Advisory Council comprised of industry experts to assist the Board in supporting the interests of the Canadian golf community. Charlie Beaulieu Laurence Applebaum • The successful global and domestic roll-out of the new President Chief Executive Officer World Handicap System now active in over 90 countries Golf Canada Golf Canada across the globe.
• Continued strong results of our amateur and professional athletes representing Canada on the international golf stage.
2020 Annual Report 7 CLICK TO PLAY VIDEO 2020 TEAM CANADA
YOUNG PRO SQUAD
Maddie Szeryk Brittany Marchand Jaclyn Lee London, ON Orangeville, ON Calgary, AB
Chris Crisologo Jared du Toit Hugo Bernard Taylor Pendrith Stuart Macdonald Joey Savoie Richmond, BC Kimberley, BC Mont-Saint-Hilaire, QC Richmond Hill, ON Vancouver, BC La Prairie, QC
NATIONAL AMATEUR SQUAD
Brigitte Thibault Mary Parsons Sarah-Ève Rhéaume Noémie Paré Rosemère, QC Delta, BC Québec, QC Victoriaville, QC
Étienne Papineau Cougar Collins Sam Meek Brendan MacDougall Noah Steele St-Jean-sur-Richelieu, QC Caledon, ON Peterborough, ON Calgary, AB Kingston, ON
NATIONAL JUNIOR SQUAD
Angel (Mu Chen) Lin Angela Arora Monet Chun Emily Zhu Surrey, BC Surrey, BC Richmond Hill, ON Richmond Hill, ON
JP Parr Malik Dao Laurent Desmarchais Jace Minni Bennett Ruby St-Célestin, QC Notre-Dame-Ile- Longueuil, QC Delta, BC Waterloo, ON Perrot, QC 9 Golf Canada Chris Crisologo Team Canada Young Pro Squad
2020 Annual Report 10 Emily Zhu National Junior Squad
11 Golf Canada Emily Zhu National Junior Squad
Women's Amateur Squad L-R: Noémie Paré, Brigitte Thibault, Sarah-Ève Rhéaume, Mary Parsons
2020 Annual Report 12 OPERATIONAL ANALYSIS
Perseverance and partnership were fundamental to Golf Canada’s fiscal • Nearly 264,000 members (2019 - 271,000) received Golf Canada success in 2020 and the organization is proud to report the positive member benefits in 2020 which included $395K (2019 - $182K) in financial results for the closing year. Management continues to produce claims paid through the membership incident protection program. significant improvements in the Net Operating Budget – the key financial • $445K was received by member clubs through the Golf in Canada metric that has required substantial focus which previously hampered COVID-19 Relief Fund, which reimbursed facilities for the purchase of the organization. personal protective equipment as well as subsidized rounds for front- Golf Canada upholds a Board of Directors’ mandate which originally line workers and juniors. required that the Net Operating Budget achieve breakeven status by • Golf Canada launched impactful new initiatives such as: 2022. This target was achieved a full two years ahead of schedule with • First Tee – Canada, with implementation to begin in 2021 the presented results in 2020. This achievement further supports Golf across several provinces Canada’s ability to utilize the investment portfolio capital for long-term strategic initiatives and provide security if volatility in global capital • A Diversity and Inclusion Alliance and a Women in Coaching markets affects annual investment income. program to address industry-wide racial and gender diversity gaps The $236K net operating surplus reported for the year ended, October 31, 2020, represents a $686K improvement compared to 2019 and • Enhancing the governance framework of Golf Canada by the greatest net operating result since 1999. Golf Canada has now adding two additional seats on the Board of Directors from recognized four consecutive years of improvement in this key financial the broader golf industry as well as establishing a new Golf metric and a $2.7M improvement since 2014. Industry Advisory Council which is focussed on capturing the recent growth of golf and focussing on a retention campaign ANNUAL NET OPERATING RESULTS in 2021 (IN THOUSANDS $) 2014 2015 2016 2017 2018 2019 2020 • An updated Golf Canada mobile app went live with new
236 features including real-time course GPS to over 1,400 Canadian clubs, statistic tracking, and fun game formats along (450) (700) (1,051) with other technological innovations forthcoming in 2021 (1,376) (1,703)
(2,453) IMPACT OF COVID-19 The support of our public and private sector partners was fundamental This success would not be possible without the continued support of to our fiscal management in 2020. In particular was the Government major partners who collaborated to renegotiate several agreements, of Canada’s COVID-19 relief measure - the Canada Emergency Wage provided subsidies for COVID-19 relief, or assisted in delivering services Subsidy (“CEWS”). The Federal government’s assistance via the and new initiatives. High points of the challenging year also included the CEWS program enabled Golf Canada to maintain full-time staff without Golf Canada / Golf Canada Foundation leadership and partner support enacting layoffs or dismissals and redirecting staff to meaningful cross- of the COVID-19 Golf in Canada Relief Fund, the National Alliance of functional projects or strategies. In addition to the $1,357K received Golf Associations (NAGA) delivery of a robust Economic Impact Study, from this program, Golf Canada was grateful for the $209K granted and the incredible collective efforts to assist member clubs and golfers from The R&A and an additional $197K from Sport Canada for relief across the country in helping to provide the recreational reprieve programs. The receipt of these funds had a significant influence on the necessary from COVID-19 lockdowns. Clearly, these golf activities organization’s financial results in 2020 and permitted Golf Canada to represented a silver lining to the ongoing global pandemic. launch several previously outlined initiatives. Sadly, due to COVID-19, Golf Canada was unable to gather larger Further details on all major aspects of Golf Canada’s core operations in groups together nationally or internationally. This prevented the 2020 are outlined below. organization from conducting championships at any level, significantly restricted Team Canada activities, and resulted in a pause on sport participation programming. However, the organization refocused and MEMBER SERVICES redirected strategies on the successful new Golf Canada mobile app, The organization is encouraged with the initial results of a concerted and membership support. marketing campaign directed at public player growth and pleased with
The following are the key highlights for fiscal 2020: the renewed energy from the golf industry to work collaboratively on retaining new golfers as well as those coming back to the game. The • A surplus of $806K for the year was recognized after amortization banner year for participation and rounds played drove membership and inclusive of investment income (2019 – $826K). revenue to a record high of $5.2M. Overall, the total national membership numbers were down 3% at 264,000 compared to 2019
13 Golf Canada – 271,000, due mostly to the fact that many leagues and other HOW YOUR DUES ARE USED associations were not able to function as normal as in prior years. Relationships, 14% Golf Canada hopes to see many of these groups return in 2021. In addition, the organization is encouraged by efforts in new club Commercial, 10% acquisition which saw 38 facilities or groups join the membership Amateur Championships, 6% in 2020. Scores posted for handicap purposes saw a notable lift Golf Services, 56% with more than 7.8M scores posted to the Golf Canada Score Sport: High- Centre, an increase of 500K compared to 2019, despite courses in Performance, 10% the majority of provinces forced to close through early spring due Sport: Participation, to the pandemic. This record level of play was the highest in Golf 4% Canada’s history. SPORT – PARTICIPATION PROGRAMS An interesting indicator of participation that was discovered was in 2020 greatly affected the organization’s ability to execute on Grow the “claims” paid under the Golf Canada incident protection program the Game - Participation programming due to COVID-19 protocols in which rivalled the increase in rounds played. A 117% increase in schools and facilities but equally challenging was the lack of capacity claims paid indicates that members played significantly more – or or availability at golf courses due to the robust amount of play. damaged / lost their equipment more often. This past year gave the organization an opportunity to re-focus Growth in total public players was recognized behind the continued efforts on executing a partnership with the Golf Canada Foundation marketing investment and acquisition strategy. At the outset of the and the PGA TOUR First Tee Foundation to launch the First Tee – season, both COVID-19 and North American social unrest delayed Canada in 2021. the appropriate launch and sales of digital marketing efforts until mid-May. Since then, growth has been substantial and accounts for an overall 27% year-over-year increase in public players totaling SPORT – HIGH-PERFORMANCE 27,600 members (2019 – 21,800). Nearly all international competitions were cancelled worldwide in 2020 and the US/Canadian border was effectively closed to non-essential From a broader perspective, the organization is eager to challenge travel. As a result, significant savings from budgeted competitions and itself to expand membership through various strategies and actions training were realised. The National Training Centre at Bear Mountain with member facilities. Most notably, a formalized sales process to and related program elements have been growing steadily, partially increase the number of member facilities and assist with increasing funded by the generous support of the Golf Canada Foundation, volumes at existing facilities is being developed. The goal is to Sport Canada and the Canadian Olympic Committee Foundation. In engage facilities to discuss their membership trends, retention 2020, the program was aided by the addition of two assistant coaches strategies and highlight key metrics from the Score Centre data before having to send all centralized athletes back home at the which can help drive the overall growth of their business. Developing beginning of March for health and safety reasons. In addition, all Tokyo member benefits for facilities and members remains paramount – in 2020 costs were saved with the organization looking ahead to fielding 2021, Golf Canada will launch a collaboration with Golf Genius that a team of athletes and staff for the rescheduled Olympic Games. can benefit any club that elects to use their services.
After an allocation of program support expenses, the total gross PROFESSIONAL CHAMPIONSHIPS revenues generated from member dues ($5.2M) were apportioned to strategic priorities of Golf Canada, against the net excess After setting combined attendance records in 2019 and elevating expenses as follows: 56% (2019 – 60%) on Golf Services (including both national professional championships to new levels on their Membership benefits, Handicap and Course Rating, Rules and respective tours, both the RBC Canadian Open and CP Women’s Heritage but excluding mobile app capital and the COVID-19 Golf Open were forced to be postponed to 2021. The organization’s in Canada Relief Fund); 4% (2019 - 5%) on Sport: Participation financial stability in 2020 was underpinned by primary support of programs (Future Links, including Golf in Schools and Golf for the PGA TOUR, Royal Bank of Canada, Canadian Pacific Railway, the Cure); 10% (2019 - 11%) on Sport: High-performance (Team Sport Canada and the Ministry of Tourism, Culture, and Sport Canada and Next Generation athletes); 6% (2019 - 6%) on Amateur Ontario to help partially offset $2.9M in fixed and sunk costs of the Championships; 10% (2019 – 5%) on Commercial activities tournaments. This support helped mitigate the net operating deficit (marketing, digital, and communications); and 14% (2019 – 13%) on of the two tournaments to $316K – a shortfall of $1,438K compared Relationships (contributions to other organizations, advocacy, safe to the surpluses generated in 2019. sport and gender equity, and administration). With regards to the outlook for 2021 Championships, Golf Canada is working diligently with partners, tours and governing bodies,
2020 Annual Report 14 stakeholders, and several levels of government to explore all options DIVERSITY AND INCLUSION, SAFE SPORT for these championships to be conducted safely and with full regard AND GENDER EQUITY to public health in some form in 2021. Golf Canada continues to be committed to fostering a safe sport
As of December 2020, the provincial governments of Ontario environment for golf. In 2017, the organization launched a framework and British Columbia were mandating limits on the size of public which led to several new and enhanced policies surrounding safe gatherings that would prohibit the organization from conducting sport practices, both in the workplace and in competition. This professional championships in the normal course of commercial framework remains fluid as we continue to improve all facets of operations. Additionally, the Federal government of Canada is the organization’s strategies surrounding these important topics: employing components of the Quarantine Act which includes such diversity and inclusion, safe sport, and gender equity. measures as closing the international borders for non-essential travel Safe sport activities continue to be cemented in our organization’s and mandating a fourteen (14) day quarantine period for visitors to strategy and in partnership with Sport Canada. Golf Canada has Canada. These measures provide further uncertainty regarding the established a national safe sport toolkit that will be made available ability for international athletes and suppliers to participate in these to all member facilities which will include best practices, access national professional championships. to an independent third-party, policies, resources, and information to assist the organization in executing safe sport practices at the INVESTMENTS facility-level. The COVID-19 pandemic resulted in governments enacting In 2020, a Diversity and Inclusion Alliance was formed to develop emergency measures to combat the spread of the virus. These and execute an action plan to help create a more diverse, equitable measures, which include travel bans, self-imposed quarantine and respectful environment within our organization and across our periods, closures of non-essential businesses and social distancing, sport. The Alliance’s vision is to create an environment where the have caused material disruption to businesses worldwide resulting in governance, management, and operations of the sport of golf in an economic slowdown. Equity markets have experienced significant Canada are respectful and inclusive of all genders and backgrounds volatility and weakness and the local governments and central banks including racialized communities and equity seeking groups. have reacted with significant monetary and fiscal interventions The Women in Coaching Program launched in 2020 is an exciting designed to stabilize economic conditions. partnership between Golf Canada and the PGA of Canada that puts Despite the significant volatility that occurred in 2020, including a golf on the path to further balance high-level coaching between material decline in the last week of our fiscal year, the organization genders. The organization’s flagship women’s leadership initiative recognized a return of 2.9% (2019 - 8.3%) for the year which resulted – the CP Women’s Leadership Summit – was conducted virtually in $765K in net investment income based on closing market values of in 2020 and continues to progress in magnitude as a critical event the portfolio’s assets on October 31. One component of the Financial championing female leadership. Mandate set by the Board of Directors states that Golf Canada must As of October 31, 2020, the organization’s employee gender profile maintain a minimum market value of $25M in assets, of which $10M was 37% female and 63% male and at the Board of Directors level, must be in liquid holdings. As of October 31, 2020, the investment 31% female and 69% male in comparison to the membership portfolio balance was $26.6M (compared to $25.1M in 2019). demographic of 22% female and 78% male. Golf Canada is The organization expects volatility but cannot predict the timing committed to ensuring that diversity and inclusion, safe sport, and thereof, therefore, Golf Canada maintains a conservative portfolio gender equity are not simply buzz words within the organization mix with an average return target of 6%, net of fees. In fact, perhaps and is fully aligned with the important work of Sport Canada in affected by the US federal election and COVID-19 vaccine approvals, this critical focus and encourages all those connected with our volatility in markets continued after year-end and as of December 17, sport – athletes, parents, coaches, staff, volunteers and club 2020, the portfolio had reached over $28.0M in total market value. representatives – to maintain an open dialogue to ensure a safe and supportive environment, without exception, across the Canadian INVESTMENT PORTFOLIO MARKET VALUE golf landscape. (IN THOUSANDS) 2015 2016 2017 2018 2019 2020 PRINCIPAL RISKS OF THE CORPORATION $26,593 Golf Canada’s ability to deliver on the facets of our strategic plan $25,093 may be affected by risks and uncertainties. Management has $24,568 $24,170 $23,946 implemented procedures to identify and manage significant brand $23,201 reputation, operational, regulatory, and financial risks.
15 Golf Canada The following section describes the principal immediate risks and FINANCIAL OUTLOOK uncertainties that have been identified which could have a material Looking forward, there is significant uncertainty as to the future and adverse effect on the organization’s future financial mandate: effects of the continued COVID-19 pandemic in 2021 and beyond. • A significant change in severity or stream of the COVID-19 The duration and impact of the pandemic is unknown at this time, pandemic. as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these • Actions taken against the organization with regards to the execution developments to quantify the impact this pandemic may have on the of operations including golf services, membership or events. financial results and condition of Golf Canada in future periods. • The loss of a major title sponsor or grant of license from a Despite this outlook, the organization remains committed to building professional governing body or material financial loss is sustained in the Net Operating Surplus before amortization and investment operating either of Golf Canada’s professional championships. income in 2022. This will provide additional capital in Golf Canada’s • A natural disaster at the Golf Canada head office or professional investment portfolio which will be used to support the priorities championship host club(s), as well as a significant security crisis at inherent in long-term strategic plans. In addition, the added growth any event or national championship. and sustainability will provide comfort that the component of our • Material volatility in capital markets causes significant depreciation Financial Mandate requiring at least $25M in investments will be of the investment portfolio’s market value. achievable without compromising programming or services.
• Digital risks: Breach of member data; non-compliance with Canadian Anti-Spam Legislation or the Personal Information Protection and Electronic Documents Act.
The Audit & Risk Management Committee completes an annual review with management to ensure that appropriate risk mitigation processes are in place to maximize utility of Golf Robert MacDonald FCPA, FCA Garrett Ball CPA, CA Director and Chair, Audit & Risk Chief Financial Officer Canada’s resources with an acceptable level of risk inherent in Management Committee and Ethics Commissioner our operations. The principal risks above may differ from year to Golf Canada year; however, management ensures that appropriate mitigation activities remain in place. December 17, 2020
2020 Annual Report 16 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,
Opinion We have audited the financial statements of the Golf Canada (the “Corporation”), which comprise the statement of financial position as at October 31, 2020, and the statements of revenue and expenses, changes in net assets, and cash flows for the year then ended, and a summary of significant account policies and other explanatory information. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Corporation as at October 31, 2020, and its results of operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Corporation in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for non-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. In preparing the financial statements, management is responsible for assessing the Corporation’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Corporation or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Corporation’s financial reporting process. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
17 Golf Canada Auditor’s Responsibilities for the Audit of the Financial Statements (Continued) As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: · Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. · Obtain an understanding of internal control relevant to the audit 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 Corporation’s internal control. · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. · Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Corporation to cease to continue as a going concern. · Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
BDO Canada LLP Chartered Professional Accountants, Licensed Public Accountants
Burlington, Ontario January 5, 2021
2020 Annual Report 18
Statement of Financial Position As at October 31
Assets 2020 2019 Current Assets Cash $ 3,066,387 $ 1,574,827 Accounts Receivable and Prepaid Expenses 2,213,637 5,517,490 Receivable from the Golf Canada Foundation (Note 14) 909,638 1,620,478 6,189,662 8,712,795
Investments (Note 3) 26,593,207 25,093,289 Capital Assets (Note 4) 147,665 131,789 Intangible Assets (Note 5) 508,201 112,901 Collections 1 1 $ 33,438,736 $ 34,050,775
Liabilities Current Liabilities Bank Facility (Note 6) - 850,000 Accounts Payable and Accrued Liabilities 3,985,405 5,462,741 Deferred Revenue 1,774,580 865,185 5,759,985 7,177,926
Net Assets Operating 27,678,751 26,872,849 $ 33,438,736 $ 34,050,775
Commitments (Note 10) Contingencies (Note 12) Impact of COVID-19 (Note 13)
(See accompanying notes to financial statements)
On behalf of the Board of Directors:
Robert MacDonald, FCPA, FCA, Director and Audit and Risk Management Committee Chair
Charlie Beaulieu President
19 Golf Canada
Statement of Changes in Net Assets Year ended October 31
2020 2019 Balance, beginning of year $ 26,872,849 $ 26,047,102 Excess of Revenues over Expenses 805,902 825,747 Balance, end of year $ 27,678,751 $ 26,872,849
(See accompanying notes to financial statements)
2020 Annual Report 20
Statement of Revenues and Expenses Year ended October 31
2020 2020 2020 2019 2019 2019 Revenues Expenses Net Revenues Expenses Net Member Services Member Services $ 5,199,236 $ 2,528,561 $ 2,670,675 $ 5,118,713 $ 2,414,263 $ 2,704,450
Program Revenues and Expenses Sport - Participation 806,666 509,532 297,134 1,329,655 1,352,082 (22,427) Sport - Performance 1,503,068 1,341,441 161,627 2,030,300 1,729,723 300,577 Amateur Championships 96,760 321,281 (224,521) 921,770 1,222,580 (300,810) Golf Services and Digital 389,907 250,083 139,824 507,321 505,198 2,123 Total Program Revenues and Expenses 2,796,401 2,422,337 374,064 4,789,046 4,809,583 (20,537)
Program Support Revenues and Expenses Commercial 10,000 1,348,290 (1,338,290) - 1,370,896 (1,370,896) Administration and Overhead (Note 9 and 13) 115,000 1,269,487 (1,154,487) 67,000 3,160,167 (3,093,167) Total Program Support Revenues and Expenses 125,000 2,617,777 (2,492,777) 67,000 4,531,063 (4,464,063)
Total Member Services, Program Revenues and $ 8,120,637 $ 7,568,675 $ 551,962 $ 9,974,759 $ 11,754,909 $ (1,780,150) Expenses
Other Operations Professional Championships 2,566,554 2,882,375 (315,821) 35,418,984 34,296,287 1,122,697 Golf Canada Calgary Centre (Note 7) - - - 1,531,899 1,324,175 207,724 Total Other Operations Revenues and Expenses 2,566,554 2,882,375 (315,821) 36,950,883 35,620,462 1,330,421
Net Operating Results $ 10,687,191 $ 10,451,050 $ 236,141 $ 46,925,642 $ 47,375,371 $ (449,729)
Loss on Disposal of Golf Canada Calgary Centre (Note 7) - - - - 483,751 (483,751) Total Investment Income (Note 3) 866,564 101,475 765,089 2,004,031 79,761 1,924,270 Amortization - 195,328 (195,328) - 165,043 (165,043)
Excess of Revenues over Expenses $ 11,553,755 $ 10,747,853 $ 805,902 $ 48,929,673 $ 48,103,926 $ 825,747
Sport Canada Funding (Note 8) Impact of COVID-19 (Note 13) Golf Canada Foundation (Note 14)
(See accompanying notes to financial statements)
21 Golf Canada
Statement of Cash Flows Year ended October 31
Increase / (Decrease) in Cash 2020 2019
Operating activities Excess of Revenues over Expenses $ 805,902 $ 825,747 Loss on Disposal of Golf Canada Calgary Centre (Note 7) - 483,751 Amortization of Capital Assets 71,108 108,593 Amortization of Intangible Assets 124,220 56,450 Increase in Fair Value of Investments (72,445) (1,473,761) 928,785 780
Net Changes in Non-cash Working Capital Components Relating to Operations: Accounts Receivable and Prepaid Expenses 3,303,853 741,452 Receivable from the Golf Canada Foundation 710,840 (492,552) Accounts Payable and Accrued Liabilities (1,477,336) 256,474 Deferred Revenue 909,395 181,809 4,375,537 687,963
Financing activity Repayment of Bank Facilities (net) (850,000) (410,000)
Investing activities Redemption of Investments 17,543,175 21,779,610 Purchase of Investments (18,970,648) (21,229,075) Net Proceeds on Disposal of Golf Canada Calgary Centre (Note 7) - 958,551 Purchase of Capital Assets (86,984) (55,055) Purchase of Intangible Assets (519,520) - (2,033,977) 1,454,031
Increase in Cash, During the Year 1,491,560 1,731,994 Cash / (Bank Indebtedness), Beginning of Year 1,574,827 (157,167)
Cash, End of Year $ 3,066,387 $ 1,574,827
(See accompanying notes to financial statements)
2020 Annual Report 22
Notes to Financial Statements
As at October 31, 2020
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) and a related party of Golf 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 14.
(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, amortized cost, or cost, less impairment 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 cash, accounts receivable, receivable from the Golf Canada Foundation, bank facility, accounts payable and accrued liabilities. Investments are measured at fair value where quoted prices are available from active markets. Investments that do not have a quoted value in an active market are recognized at cost, less impairment. Investment income includes interest, dividends, realized gains/(losses), and net change in unrealized gains/(losses) for the year, less investment management fees.
23 Golf Canada
Notes to Financial Statements
As at October 31, 2020
2. Summary of Significant Accounting Policies (Continued) (d) Capital assets and amortization Rates and bases of amortization applied to amortize 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
(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™ 33%, declining balance CRM and Golf Canada Mobile App 33%, declining balance
(f) Collections The Canadian Golf Hall of Fame and Museum’s collection of archives and assets are owned and curated by Golf Canada. The accumulated value of the entire collection is unknown and cannot be reasonably determined. The Corporation’s collections are capitalized in the Statement of Financial Position at a nominal value and are not subject to amortization. For purchased items, the difference between the purchase price and nominal value is expensed in the period the items are acquired.
(g) 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. Government subsidies are recorded as an offset to the expenses in the year received or receivable if the amount to be received can be reasonably estimated and collection is reasonably assured. All other revenue is recognized upon completion of the particular tournament or event.
(h) 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.
(i) 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.
2020 Annual Report 24
Notes to Financial Statements
As at October 31, 2020
2. Summary of Significant Accounting Policies (Continued) (j) 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 using the exchange rate in effect at that date. At October 31, monetary assets and liabilities are translated into Canadian dollars using the exchange rate in effect at that date. Resulting foreign exchange gains and losses are recorded in the Statement of Revenue and Expenses.
(k) 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 its 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 $483,957 (2019 - $147,066), had $10,000 (2019 - $nil) in outstanding U.S. receivables and had $1,525,877 (2019 - $nil) in outstanding accounts payable and accrued liabilities.
(iii) Interest rate risk Interest rate risk is 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 facility (Note 6) debt that bear interest based on the lender’s prime rate, which may vary from time to time. 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 engaging external professional investment advisors and establishing risk guidelines to ensure that appropriate diversification exists, guided by the Corporation’s 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 financial 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 facility and commitments. Golf Canada manages this risk by maintaining a portion of its invested assets in liquid holdings.
25 Golf Canada
Notes to Financial Statements
As at October 31, 2020
3. Investments (a) 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 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 had been met as at October 31, 2020.
(b) 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 short-term instruments, income, equity, and alternative 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:
2020 2019 Investments Measured at Fair Value $ 25,933,207 $ 23,618,906 Investments Measured at Cost, Less Impairment 660,000 1,474,383 $ 26,593,207 $ 25,093,289
(c) Investment Income Investment income recognized in the Statement of Revenues and Expenses include the following: 2020 2019 Distributions $ 794,119 $ 530,270 Increase in Fair Value of Investments 72,445 1,473,761 $ 866,564 $ 2,004,031
Expenses recognized in the Statement of Revenues and Expenses include professional fees paid to the Corporation’s professional investment advisors of $101,475 (2019 - $79,761).
4. Capital Assets 2020 2019 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Computer Equipment $ 785,878 $ 714,634 $ 71,244 $ 746,892 $ 663,645 $ 83,247 Leasehold Improvements 232,471 192,484 39,987 184,482 184,482 - Furniture and Equipment 282,185 245,751 36,434 282,176 233,634 48,542 $ 1,300,534 $ 1,152,869 $ 147,665 $ 1,213,550 $ 1,081,761 $ 131,789
2020 Annual Report 26
Notes to Financial Statements As at October 31, 2020
5. Intangible Assets 2020 2019 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Website and Score Centre™ $ 385,110 $ 321,914 $ 63,196 $ 385,110 $ 290,315 $ 94,795 CRM and Golf Canada Mobile App 616,040 171,035 445,005 96,520 78,414 18,106 $ 1,001,150 $ 492,949 $ 508,201 $ 481,630 $ 368,729 $ 112,901
6. Bank Facility As at October 31, 2020, the Corporation has a revolving demand facility of $2,000,000. As general and continuing collateral, security on the bank facility is equal to a maximum lending value of 50% of the market value of the Corporation’s investments (Note 3). As at October 31, 2020 $nil (2019 - $850,000) of this facility was utilized. The facility is due upon demand and bears interest at a rate of bank prime plus 0.75%, which equates to 3.20% at October 31, 2020 (2019 – 4.70%). During the year, the Corporation incurred $11,745 (2019 - $24,805) of interest expense in relation to the bank facility. As at October 31, 2020, the Corporation is compliant with all conditions and general covenants of the facility.
7. Disposal of the Golf Canada Calgary Centre On October 31, 2019, the Corporation executed the sale of the Golf Canada Calgary Centre for net proceeds of $958,551 ($1,000,000 less working capital adjustments), which were received upon closing. All assets of the Golf Canada Calgary Centre were sold, and the property lease was transferred to the purchaser (Note 12). The loss on disposal amounted to $483,751 and was recorded in the Statement of Revenues and Expenses in 2019.
As part of the executed purchase and sale agreement in 2019, Golf Canada was to be paid a portion of the business profits from the purchaser’s operations through 2022. During 2020, Golf Canada and the purchaser negotiated a one-time settlement payment of $250,000 in lieu of future contingent business profits (the “Buyout Agreement”). Subsequent to year end, Golf Canada received the $250,000 on November 2, 2020.
8. 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 Program Revenues and Expenses on a pro-rata basis of total eligible expenditures. During the Corporation’s fiscal year, a total of $932,025 (2019 - $832,250) was recognized from Sport Canada through the Sport Support Program.
27 Golf Canada
Notes to Financial Statements As at October 31, 2020
9. Allocation of Administration and Overhead Expenses 2020 2019 Building and IT Systems, Network and Applications $ 878,361 $ 906,040 Salaries, Benefits and Travel 1,506,209 1,445,447 Strategic Planning and Transitional Costs 394,426 609,025 Professional Fees, Insurance, and Bank Fees 303,998 329,988 Conferences and Meetings 181,240 356,285 Postage, Courier and Other Costs 70,915 123,859 Rebates and Subsidies, Recoveries, and Donations (Note 13) (1,620,082) (183,977) Total Administration and Overhead Expenses 1,715,067 3,586,667 Allocation to Professional Championships (445,580) (426,500)
Net Administration and Overhead Expenses $ 1,269,487 $ 3,160,167
Golf Canada incurred approximately $99,000 (2019 - $95,000) of administration and overhead expenses, on behalf of the Golf Canada Foundation during the year. These expenses have not been charged to the Golf Canada Foundation.
10. Commitments The Corporation has entered into agreements to lease office and storage space, and office equipment to various dates through 2024. Minimum annual payments under these lease agreements in aggregate and for the next four years are due as follows:
2021 $ 477,158 2022 439,825 2023 84,791 2024 4,982 Total $ 1,006,756
11. 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 annually, on behalf of each eligible employee. During the year, the Corporation contributed $143,751 (2019 - $144,146) 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.
2020 Annual Report 28
Notes to Financial Statements As at October 31, 2020
12. Contingencies (a) Legal Matters 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 the Statement of Revenues and Expenses in the year in which management can reasonably estimate the quantum of loss.
(b) Property lease – Golf Canada Calgary Centre Upon execution of the disposal of the Golf Canada Calgary Centre (Note 7), the Corporation transferred the property lease to the purchaser. If the purchaser defaults on their obligations of the lease with the landlord in the initial 5-year term, ending October 31, 2024, Golf Canada may be liable for unfulfilled obligations to the landlord. In conjunction with the execution of the Buyout Agreement (Note 7), the purchaser indemnified Golf Canada in respect of any liability suffered or imposed upon the Corporation in respect of this commitment to the landlord.
13. Impact of COVID-19 In March 2020, the World Health Organization characterized the outbreak of the novel strain of coronavirus, specifically identified as “COVID-19” as a global pandemic. This has resulted in the local governments enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, self-imposed quarantine periods and social distancing, have caused material disruption to businesses worldwide resulting in an economic slowdown. Equity markets have experienced significant volatility and weakness and the local governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions.
In 2020, Golf Canada cancelled all amateur and professional championships, limited travel and activities for the National Amateur Teams, and temporarily ceased sport participation programming in order to ensure the health and safety of the communities that the Corporation had planned to operate in. During the year, Golf Canada filed applications for the Government of Canada’s COVID-19 relief measure, the Canada Emergency Wage Subsidy. $1,356,844 (2019 - $nil) in wage subsidies through this program were recognized in the Statement of Revenues and Expenses and netted against Administration and Overhead.
As at October 31, 2020 the provincial governments of Ontario and British Columbia are mandating limits on the sizes of public gatherings that would prohibit the Corporation from conducting the 2021 RBC Canadian Open in Etobicoke, and 2021 CP Women’s Open in Vancouver, respectively. Additionally, the Federal government of Canada is employing components of the Quarantine Act which includes such measures as closing the international border for non-essential travel and mandated a fourteen (14) day quarantine period for those entering Canada. These measures provide further uncertainty regarding the ability for international athletes and suppliers to participate in these national professional championships.
There is significant uncertainty as to the likely effects of this continued pandemic. The duration and impact of the COVID-19 pandemic is unknown at this time, as is the efficacy of the government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments or to quantify the impact this pandemic may have on the financial results and condition of Golf Canada in future periods.
29 Golf Canada
Notes to Financial Statements As at October 31, 2020
14. 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 fiscal 2020, the Foundation awarded a total of $1,164,129 in scholarships and grants (2019 - $1,556,067).
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. A summary of the audited financial statements of the Foundation as at October 31 and for the years then ended are as follows:
2020 2019 Statement of Financial Position Total Assets $ 2,903,001 $ 3,514,214 Total Liabilities 1,233,281 1,846,918 Total Net Assets $ 1,669,720 $ 1,667,296
Statement of Revenues and Expenses Total Revenues $ 1,846,945 $ 2,572,545 (Loss) / Gain on Fair Value of Investments (5,081) 96,197 Total Expenses 1,839,440 2,450,817 Excess of Revenues over Expenses $ 2,424 $ 217,925
Statement of Cash Flows Cash (used in) / from Operations $ (275,972) $ 353,415 Cash used in Investing Activity (96,888) (41,035) Cash from Financing Activity 50,965 180,864 (Decrease) / Increase in Cash $ (321,895) $ 493,244
The Receivable from the Golf Canada Foundation is non-interest bearing, has no specific repayment terms, and 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 $650,000 (2019 - $1,071,445) of revenue has been recorded in the Statement of Revenue and Expenses from the Foundation towards Sport – Participation and Sport – Performance programs. These transactions are in the normal course of operations and are measured at the exchange amount which is the amount of consideration established and agreed upon by the related parties.
2020 Annual Report 30
Schedule A (Unaudited)
Year ended October 31, 2020 Sport Canada Funding – Revenues and Expenses
The following schedule highlights the total cash funding provided by Sport Canada during their fiscal year ending, March 31, 2021 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 committed from Sport Canada for the April 1, 2020 to March 31, 2021 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, 2020. 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 Funding and Expenses by Category General Administration $ 45,000 $ 774,976 Governance 20,000 324,542 Salaries, Fees and Benefits 183,500 5,379,888 Coaching Salaries and Professional Development 40,000 729,239 National Team Program 100,000 668,286 Official Languages 10,000 118,950 Operations and Programming 275,000 1,350,228 Enhanced Excellence Initiatives 60,000 60,000 Next Generation Initiatives 50,000 50,000 Gender Equity & Safe Sport 122,650 122,650 COVID-19 Emergency Support Fund 196,750 98,375
Total Revenues and Expenses $ 1,102,900 $ 9,677,134
Prepared by management solely for internal purposes without audit or review.
31 Golf Canada