MANLY GOLF CLUB LIMITED

ABN 18 000 007 465

107th ANNUAL REPORT

2011 2012

MANLY GOLF CLUB LIMITED

ABN 18 000 007 465

President
K. J. W. MUNRO

Vice President
D. J. CLEARY

Captain
J. MATER

Vice Captain
*P. J. KELLS

Treasurer
R. R. HOLM

Directors
G. M. COYNE R. W. NORRIS J. P. OCONNOR R. O. PFAFFLIN

General Manager
E. J. HYNES

Life Members
Mrs. E. L. CAVILL W. JAMES

Auditors
CABEL PARTNERS *retired from the Board on 5th October 2012

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PRESIDENTS REPORT

After 13 years work by a lot of people, our new course was officially opened for play on Friday 13 July 2012, almost 6 years after Members overwhelmingly gave the go-ahead. As it turned out the ensuing years were anything but incident free, with a combination of regulatory requirements, site difficulties and weather causing cost blow-outs, design changes and delays. On the positive side, at no stage did we compromise the underlying construction parameters. Consequently Members can be assured that the course has been built to last, and, when grown in, will present far better than ever was possible with our heritage layout. Time will tell but for what these things are worth, I am confident the new course will see our return to the list of Australias top courses after many years of absence. Without the support of successive Boards, a patient membership, reciprocal playing rights and competent project management, the outcome would have been much different. As Board Director responsible for the course redevelopment for the last 10 years, I am extremely proud of what has been achieved. I am not happy that the final cost was greater than we originally envisaged and the reasons behind this are contained later in this report. However, I must add that in this context, as Members, we owe a great debt of gratitude to Ed Hynes as Project Manager and Michael Bradbery as Project Supervisor for completing the course for the cost incurred. In short, our site being on a flood plain, presented many challenges and these were only accentuated by the extreme weather that prevailed throughout most of the construction period. While we negotiated away the construction cost increases incurred due to weather delays and damages, we still had to wear the impact on our trading caused by the delay in opening the full 18 holes. Members who want to really understand the challenges faced should refer to the unabridged version of the Course Redevelopment story that appears later in this report.

From a financial perspective too, the project was not without challenge. In fact, in mid- 2010 we faced the real prospect of not being able to complete all 18 holes due to a lack of funding. Delaying completion of the final 7 holes indefinitely was never seriously considered. This outcome would have left us with two different grass regimes, meant almost half the course was still subject to the problems that plagued the original course and would have seriously impaired our ability to retain existing members and/or attract new members. That was why we had approved by members at the 2010 AGM the proposal to help fund the cost of completing the course by selling excess property. As we go to print we have sold the two blocks of land for $1.875m and the middle of the three houses for $800k; the remaining two houses will be offered for sale in the near future. As foreshadowed in my recent report to members on the course redevelopment, we expect at the conclusion of the real estate sales to be left with a core debt of some $5m. To put that into context, our debt when we completed the Clubhouse some 10 years ago was $3m. We are recommending to future Boards that to ensure inter-generational equity, the debt be paid off over 18 years. Again, I repeat, as evidenced by the growth in new members and a return to pre-construction trading activity, we are confident that MGC can handle this level of debt. I am very aware as outgoing President, it is neither in my power nor my right to bind future Boards decision-making in any way. Having said that, I do think it appropriate at this time that I document the assumptions underpinning the statement that the Club can handle the residual debt. New Members An important justification for rebuilding the course was the need to reverse the steady decline in membership since 2003. 7-Day playing membership numbers bottomed in 2010 at 573, 5-Day playing members in 2009 at 399. In 2011 and 2012 respectively we attracted some 55 and 62 new 7-Day members. The equivalent numbers for 5-Day playing members

3 were 31 and 16, respectively. Over the two years 34 of the 5- Day playing members were at the discounted rate. I would like to take this opportunity to welcome all our new members and thank them for their faith in the future of this wonderful golf club. In the same vein also, a particular thanks to those members who had the foresight, confidence in the future of Manly Golf Club and the wherewithal to purchase a 10-year Membership at what was probably the low point in the redevelopment process. Going forward, we are assuming we will attract the equivalent of 36 new full fee-paying members per year for the next three years and 24 per year thereafter. Levies A controversial topic. Clearly the outgoing Board cannot constrain in any way future Boards decision-making. Having said that we are assuming Club trading will return to 2009 levels from next year and inflation will be 3% (and thus Prices, Wages and Subscriptions will similarly need to increase). On that basis the $250 Construction Levy should be in place until the conclusion of the 2013/14 financial year. Hopefully the new course, consequent increased Member/ Visitor activity and corporate days will see a much better trading performance than 2009. Whether this results and thus reduces the need for such a levy only the Board of the day will have the information needed to make such decisions when and as they fall due. Please see the Treasurers report for further discussion and the outcome of the above assumptions. Unfinished Business A toilet on the course. As we go to print we are submitting a DA for a sewer connected facility next to the 5th tee. Because we are on a flood plain and in an environmentally sensitive area, we have been advised approval will not be automatic. The Bowlers Shed. A big thank-you to the Bowlers for agreeing to give up their old shed so we could more easily sell the vacant land next door. We have submitted a DA for a new shed to be located in the north-east corner of the bowling rinks. It will have BBQ facilities and as such be available to members for small private functions when not being used by our Bowlers. We expect to begin construction by the middle of 2013. Broader Member Board Representation. I have prepared a discussion paper that canvasses the pros and cons of extending Board Membership to 5-Day playing members (both male and female) on a proportional basis without any change to playing rights. Clearly the incoming Board can do with it as they see fit. Thank-Yous Another challenging year has come to its end, and again every Director gave willingly of their valuable time to attend to the policy and business of the Club through the various Committees and Board Meetings. Without a doubt the most challenging of tasks, and the one that occupied most time and over which there was most discussion, was completing the redevelopment of the course and the funding thereof. My thanks go to each Director for their ongoing commitment, their wise counsel, their opinions, their achievements for the Club, their support and for their friendship. It has been a privilege to have worked with you all. To those Directors retiring at the end of this year, I hope you enjoy your new found time. To those continuing on, I know the future of Manly Golf Club is in good hands. I would also like to thank the members of the Womens Sub-committee, led by Anne Hutchison and Barbara Maggs. The staff of this golf club is outstanding. Lisa, Denise, Belinda, Michelle and Sharyn in the office. Catherine, Markus, Richard and Justine for Functions and Social, and Alan and the Bar staff for always providing efficient and friendly service. To Michael Bradbery, Jason and the team thanks for keeping us playing golf on a much constrained layout under mainly unhelpful weather conditions. Now our new course is finished it is a fitting reward that you finally get a chance to show members how well our course can be presented.

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CAPTAINS REPORT

Thanks too, to Phil Baird, Ben Owen and the Golf Shop staff for doing a great job during a difficult year. I know it has not been easy keeping members happy during the many course changes and weather delays that we saw this year. We have now had some three early Monday morning Working Bees when a small number of Members have turned up to help our Greens staff clean up storm damage, pull out selfseeded Casuarinas and generally tidy the course up. I thank each and every one of you and look forward to increasing numbers of members being prepared to donate two hours of their time in a worthwhile cause. Lastly, thanks to Ed Hynes for ably managing the Club while completing the golf course redevelopment. A particular thanks for managing the cost base in line with our somewhat constrained trading conditions. As some of you know I was a reluctant President. When I was asked to join the Board to fill a casual vacancy in August 2000, I accepted because I wanted to play a part in the course redevelopment. I had no inkling then of how big a part, or how long it would eventually take to realise that ambition. So thank you to President Maurice Munsie and the Board of 2000 for approving my selection. Thanks also, to President, Gerry Elkan who appointed me Chairman of the Course Redevelopment Committee back in early 2003. However, my biggest thanks must go to you, the members for your faith and patience over the last 6 years. Finally I would like to say what a privilege and honour it has been to have served as President for the last five years. I wish the new President and the incoming Board every success. Deceased Members The Board noted with sadness the passing of the following Members; Geoff Cotton, Allan Doutreband, Frank Ellis, Warren Gleeson, Tom Hartigan, Len Hinde, Alexander Morrison, Mel Parnell, Joseph Ryan, Ken Taylor and Henny Wennink, Ken J W Munro

Looking back 2012 has been an exciting year. We started the year playing nine holes twice until the 14th of July when we had our opening of the full new 18 holes. After nearly 3 years of disruptions we now have a wonderful worldclass golf course that we can all be proud of. Although there have been many people responsible for finishing this project there is noone that has done more than our President, Ken Munro. Ken joined the Board as a Director in 2001 and 2002. From 2003 to 2007 he was Vice President and from 2008 to 2012 as President he has led the Club through some of the most difficult times in our Clubs history. He has been on the Course Redevelopment Sub-Committee from the beginning and has chaired that committee through the construction period over the last three years. Ken has been part of the Finance, Match and Greens SubCommittees over the many years and has chaired the current Board with great leadership skills to get this Club where it is today. As Ken is retiring from the Board this year I would like on behalf of all the members to thank him for his fantastic efforts over the years and wish him good golfing in his retirement. Swing slow Ken. Special mention should also be made of the efforts of our CEO, Ed Hynes. Ed was largely responsible for getting us the two million dollar grant from the Federal Government. He also saved us millions of dollars with his negotiations with the contractors in getting a final price for the construction of the course and for bringing it in on budget. His efforts in managing the construction of the course have been terrific and we thank him for it. I would also like to thank Michael Bradbery and Jason Martin and their team for the wonderful way that the course has been presented throughout the construction period. This year for the first time in three years we have been able to run all our Board events and the winners are listed later in this annual report. I would like to congratulate our new Club Champions Andy Bryon and Christine Gordon.

5 To celebrate the opening of the new course we introduced new perpetual trophies called the Manly Links Trophy. These trophies were for the Mens Competition, 2BBB, the Mens Open Draw Competition and the Ladies Competition. Again congratulations to the inaugural winners. This year we fielded representative teams in the Major Pennants, Senior Pennants, Inter-club Challenge as well as the Northern Peninsular Challenge. All teams preformed well and I congratulate all the team members for their efforts. Individual reports follow my report. Unfortunately we not able to field an Eric Apperly team this year but look forward to next year. I would like to congratulate all our lady members that represented the Club in the various pennant teams. Well done to the Bronze II Pennant team that won their competition. With our course shortened this year we were unable to host the team from Commonwealth Golf Club this year but they will be visiting us next year in March and we look forward to their visit and getting our year about competition back on track. This year our Match Sub-Committee has introduced a Junior Golf Program to encourage young people to take up the game of golf and hopefully find some young champions. This program has two parts to it. Firstly we want to introduce our new young members to each other and get them playing golf together. This will encourage young members to want to play in our Encourage Shield team and the Eric Apperly competitions. The second part of this program has been to introduce coaching clinics for sons and daughters of members along with their friends to learn the game of golf and encourage them to join the Club when they are old enough. We now have about 30 children aged from 7 to 15 attending the clinics run by our professional team on both Sunday and Tuesday afternoons. With the completion of the course we now have excellent practice facilities and it is great to see so many members out there improving their golf. I would like to thank my fellow members on the Match Sub-Committee: Ric Holm, Glenn Coyne and Ken Munro along with Ed Hynes, Phil Baird and in particular my Vice Captain, Phil Kells. His help with the course set-up and developing all of the many local rules during a trying time has been appreciated. His computer skills also have allowed us to alter the scorecard set-up as required. A special thank you to our Lady Captain Barbara Maggs, who has done a terrific job as Captain in her first year. Her contributions at Match meetings have always been positive in raising many issues that have concerned women members. On behalf of the members I would like to thank Phil Baird and Ben Owen along with Richie, Taylor and Nathan for their assistance in making golf at Manly an enjoyable experience. Thank you also to the bar and office staff for looking after us throughout the year. Michael Bradbery and his team must be congratulated again on the way the course has been built and maintained throughout three of the most difficult years the Club has known. Our new course is something really special and this is largely due to their efforts. This course will only get better with age and members can now boast one of the best courses in Sydney. As members we must do our bit to maintain it by raking bunkers, filling divots and repairing pitch marks. I would like to thank our new Course Marshalls. Their presence has improved the pace of play and members must obey any instructions issued by them. All members must keep up with group ahead, not ahead of the group behind, to ensure an enjoyable round for all. Finally I would like to thank all the members for their patience and understanding during the construction period. It has been a difficult time but we can now look forward to a great 2013 with all the knockout matches being played on a wonderful golf course. John Mater

6 Major Pennant In the 2012 Pennant Season Manly was grouped with Monash, Ashlar and Camden in Division 2. Our first match being away versus Camden, the boys fought out a well-earned half which was a great start to the season. With tough trips away Manly had a great win at home against Camden and led Ashlar all day to lose 3 matches on the last just to go down in the end. There was good spirit in the team all year and an example of this with Anthony Mellowes having to play a certain A Downton from Ashlar who plays off plus 5 away. Anthony being only a couple down at the turn thought that having a beer at the halfway house might unsettle him. Unfortunately not, eventually losing 3 and 2 after giving away 12 shots which I think was a win for Manly. After the series of home and away matches Monash were the winners and progressed to the semi-finals. With some promising results and a new golf course that I am sure will give us a home course advantage we are looking forward to the 2013 season. Thanks to everyone who helped and participated this year including John Mater, Phil Kells, Phil Baird, Stuart Strong, Tim Paul, Rob Arbon, Julian Jackson, Shane Golding, Andrew Bryon, Chris Connolly, Anthony Mellowes and Kieran Chowdry. Michael Hill and 3 losses out of a possible 6 matches meant we finished 3rd in our division. Everyone who played enjoyed the challenge and the renewing of old friendships (David Glassop ex-Manly member from Northbridge) and played some good golf on many occasions. Everyone should be happy with how they played. We are all looking forward to next year and with our tough new 18 in play then our winning form should also follow as the local knowledge we now have will prove a very big advantage to us at home. The team also appreciated the support given from Phil Baird and our Club Captain, John Mater and especially to the members of Manly Golf Club for allowing us to use some Sunday tee times. Darryl Hearsch

Eric Apperly 2011 Report. In November 2011 Manly GC entered a team for the Eric Apperly Shield consisting of Tim Paul, Jamie Titherley, Shane Golding, James Cockerill, Kieran Chowdry, Neil Chowdry & Mitch Pack. The team was ably managed by Rob Cockerill. The Clubs we competed against included: The Australian, North Ryde, Muirfield & Pennant Hills, a terrific line up of wonderful courses which the lads enjoyed very much. However, equally impressive was the quality of the players in each of these teams and in fact when we played The Australian team their total handicaps added to scratch. . . compared to our total of 30. As expected, The Australian team went on and won the Shield. The competition and the spirit in which each game was played were tremendous and our boys should be commended on the way in which they represented Manly GC. The Club will compete again in the Eric Apperly Shield next year and will continue to pursue the growing junior golf opportunities in the Club. Philip Baird

Masters Pennant In our Division this year we were drawn against Northbridge, Wakehurst and Carnarvon which was a big change from previous years in which we had local teams in our division. This year we welcomed Nick Reid, Steve Avis, Phil Garden, and Mark Masterton into Masters Pennant. The team of Darryl Hearsch, Phil Howard, Keith MacKenzie, Mark Larcombe, Mike Buckling, Tony Smith, Mal Avis, Brent Haverfield, Mark McDougall and our rookies had mixed results due to the wash-outs and postponements due to heavy rainfall in April and May. We unfortunately did not play our home match against Carnarvon which ultimately decided the very close division. No club in our division won a match away from home. So the 2 wins

7 Interclub Challenge Cup 2012 Interclub is an annual team event played between the original 16 Group 1 Sydney golf clubs. The draw this year had us in Section 1 with NSW, Royal Sydney and Bonnie Doon. Following a successful number of years under former captain Gary Dainton, including a few final appearances, the team was to be captained this year by Julian Jackson. With only 3 matches played leading into the finals, getting off to a good start is important, and our team was faced with Royal Sydney at home first up. On one of the windiest days of the year, many of the Royal Sydney players commented it was the hardest the course had played in years, and given our combined handicap of 52 versus the 32 of Royal Sydney, it appeared we had a tough task ahead. The result for the day of 4-all was good result. Week 2 was at Bonnie Doon on their recently completed new layout. We were up against NSW who had defeated the hosts the previous week at Royal Sydney, and again were faced with a handicap differential of 51 to 32. The conditions were cold, wet and generally unpleasant. Most of the matches were tight with 3 of them going to the 18th hole. Our team went down narrowly 4 to 3 . In the other match Royal Sydney were no match for Bonnie Doon going down 6 to 2 this left us needing a win against Bonnie Doon at home to make the sectional final. Week 3 at home in near perfect conditions, the handicap differential was against us 50 to 34, but the team was confident playing our new North Links twice would be to our advantage, well so we thought. The 5 to 2 result to Bonnie Doon was disappointing and left us to play Royal Sydney at NSW the following week in the bottom two playoff . In the sectional final at NSW in appalling conditions were beaten 6-2 by Royal Sydney. In a disturbing twist Kogarah managed a 4-4 half against Pymble in Section 2 to catch us on the overall table on 1 team point and 12 individual points. This dragged us back to being joint holders of the wooden spoon for 2012. Captain Jackson was particularly concerned by this result as the Captains Wooden Spoon Speech is the highly anticipated highlight of the end of season dinner. A perfectly planned and executed performance by Captain Jackson was well received and looks to have ensured, through some nifty sleight of hand, that the trophy no-one wants will not set foot on MGC premises (well for 2012 anyway). Not our best year in the Interclub Challenge, but as always it was an enjoyable event played in great spirit despite the weather on most days. We now look forward to 2013 in section 3 with Kogarah, Avondale and Oatlands as we look back on 2012 as our rebuilding year. On behalf of myself and the Captain Julian Jackson, thank you to the Club for supporting this event, members for coming to support our team and to our players Andy Bryon, Chris Connolly, Stephen Day, Michael Hill, Craig Bernhardt, Anthony Mellowes, Gary Dainton, Michael Krohn, David King, David Ross, Mason Paynter, Ken Munro and Darryl Tweedale who all represented MGC admirably this year. Phil Kells

Northern Peninsula Interclub Challenge A Trophy at Last but alas, not the one we really wanted! The Northern Peninsula Inter-Club Challenge celebrated its tenth anniversary, with the final(s) and Championship Dinner being held at Manly. Manly commenced the competition with a sound 5.5 to 2.5 win over Bayview, round 2 saw an excellent win against Cromer 5.5 to 2.5, round 3 and another win, this time against Wakehurst 4.5 to 3. We were looking good for a spot in the Final when we came up against our bogey team, Mona Vale, the perennial Wooden Spoon Holders and they again proved to be our downfall with a 4 to 3.5 victory. In the last round before the finals, playing Long Reef we needed to win 2.5 matches to make the final after leading 5 to 2.5 at the ninth we were looking good, only for the wheels to fall off as so often happens in golf and we were defeated 5.2 to 2. So close but so far away. We had qualified to play Bayview for the

8 Would-Be Trophy (play-off between the third and fourth placed teams). We had a great win and proudly held up some silverware at the Championship Dinner. Next year we hope to hold up the Northern Peninsula Inter-Club Challenge Trophy. Our congratulations to Cromer who defeated Long Reef 4 to 3.5 in the final. Team selection was disrupted by medical operations and travel, but it was nice to welcome new oldies Ric Bloore, John OConnor, Paul Nichols, Dennis Brewer, John Bergin, to join Ken Munro, Peter Haynes, Richard Thomas, Terry Maloney, Peter Maggs, Bob Pfafflin, Grahame Nagel, Graham Carmichael, Richard Evans, Gavin Fish, and Brian Gordon. The team was captained by Richard Thomas and Bob Pfafflin. A special mention is made of Terry Maloney and Bob Pfafflin, both of whom have played in every year of the NPICC . . . they dont look seventy! All teams convey their thanks to Denise Darby for all the work she does as the NPICC Secretariat. Bob Tuckerman GREENS REPORT Being the first annual greens report since the full new course has been completed it is exciting now to see the complete course and what it will become over the next couple of seasons as the turf and landscape plants become fully established. The priorities for Michael Bradbery and the greens staff is to progress the establishment and health of the new fairways while greatly reducing weeds. Aeration of fairways to relieve the compaction from construction and weed control will continue throughout summer. Providing we get a normal (much warmer than last year) summer we should see a marked improvement in this regard. The wet winter certainly tested the surface drainage of the new holes with the recovery after inundation greatly improved from the old course. With our annual average rainfall coming in the first six months of the year we got to see how it would perform in the worst case scenario. While closures still occurred there was less than what has been historically recorded in similar extreme years. As explained by the Course Superintendent the reconstruction dealt with the surface drainage pushing water after inundation or ongoing rain to a network of pits and pipes. This network becomes the foundation to now install subsurface drainage. This is done after construction to allow settling and establishment of turf to enable it to be done more efficiently and accurately. Sub-surface drainage work will continue on from last year when the 1st, 10th and 8th holes had drainage installed. During the period from November 26 to December 14th the sub-surface drainage program will continue on the 2nd, 3rd, 5th and 6th holes. Reflecting on the past year has seen the Club come through the final stage of construction under some appalling weather conditions. These conditions also did not help the holes 110 that were under substantial pressure being played twice during one of our wettest winters and still being very immature. Maintenance on the congested nine holes in play was very difficult. It certainly was a sigh of relief for the greens staff to get the final grass down (some of which was laid 5 times owing to flooding and washaway) and open the full 18 holes. The completion of the stormwater harvesting pond leaves only the assessment of the water quality from the pond and design of the treatment to enable it to be irrigated safely. Stormwater receives initial treatment before the pond through the new Gross Pollutant Trap. The water is then improved by sunlight as the water is circulated by six sub-surface aerators. The water is then filtered as it is pumped through the transfer pump. It is likely this water will be first treated with UV lamps to kill viruses before being chlorinated to kill any remaining bacteria. This is necessary as it is inevitable that some level of sewage gets into the stormwater during certain rainfall events due to the old sewer and drainage networks in the catchment.

9 Members should be reminded that the internal and external banks of the Stormwater Harvesting Pond are off limits at all times. These areas are sensitive, are not stable to walk on and are easily damaged. With Burnt Bridge Creek now running through the course as opposed to around it, members will now be much more aware of what comes down the catchment with the stormwater. The Course Superintendent recently made a presentation to the Manly Lagoon Catchment Co-ordinating Committee on the new course and the impacts of sediment, debris and rubbish being deposited in the new naturalised creeks. Manly Council have recently informed the Club they will be installing a large sediment trap in Manly West Park to contain the sand and sediment before it reaches the course. An ongoing commitment from Council to maintain this sediment basin should greatly reduce what is being seen in the new creeks such as in front of the 8th green. Inquiries have also been made about the removal of floating rubbish etc. before it reaches the course. The Club will have contractors on site in late November /December removing some of the accumulated sediment and organic matter in the creeks on the north links. Hopefully the frequency of this will be reduced following the work in Manly West Park. On top of the water quality problems above is the effect of the nutrient load which deposits in Cemetery and Keirle creeks when flows stop. The smaller amount of water coming through these two creeks and their smaller catchments does not sufficiently keep them flowing, which results in lagoon waters backing up, increasing in temperature during warm weather and suffering from algal growth. Options to improve the visual quality of the water are being investigated with a trial of re-circulating lagoon water to commence. Other priorities for the Course Maintenance Department in the next 12 months are: - replacement of the underground fuel storage at the maintenance facility; - lodge the DA and oversee construction of the 5th tee toilet. Maintenance equipment purchased in the last 12 months was two new Toro walk-behind mowers for greens, Toro boom spray and a Toro surrounds mower. As members would have noticed throughout the construction process many surfaces particularly in stage 2B were grassed while completely saturated. These soils have now dried and settled at varying rates to leave very lumpy and uneven surfaces. A combination of coring and topdressing will greatly assist in the gradual process of smoothing out these surfaces over the coming years. One of the first priorities we intend for equipment this financial year is a fairway coring / core processor machine. This equipment will allow the more frequent core aeration now required. To relieve compaction the corer pulls out a small plug of turf and soil which the attached core processor chops up and spreads back onto the surface. This combination of aerating and the light topdressing that results will speed up the difficult process of relieving compaction and levelling the new surfaces. This equipment will also preclude the need to bring in contractors to renovate fairways which is the current practice. Two impressive milestones were achieved this year with members of our course staff, Alan Hill and Grant Whitson, reaching 40 and 20 years of service, respectively. Alan has been a groundsman with the Club since he was 15 while Grant came to the Club as a Fitter and Turner and has refined his skills in the specialised field of golf course equipment maintenance. I would like to thank them on behalf of the Greens Sub-Committee and all members for their service and loyalty. On behalf of the Board, our Greens SubCommittee and all our Members I wish to thank Michael and Jason for all their efforts maintaining what we had and bedding down the new during the course redevelopment and ask them to pass on to our greens staff our thanks for their care and nurture of our course and the pride we can have in our course from their efforts. Members please lets do our bit, pitch marks, divots and bunkers!

10 To members of our Greens Sub-Committee, Ken Munro, John Mater, John OConnor, Barbara Maggs, Phil Baird and Ed Hynes, I thank you for the effort and contribution you have made to the committee. Finally thanks to Phil Kells who was, before standing down from the Board, a good and constructive member of the Committee. Phil took very much to heart the care of the course and his contribution is missed. Ron Norris, Chairman, Greens Sub-Committee the process of establishing a career or occupation. Many of our young golfers moving into this age group have been Junior Members of the Club and without this adjustment we risked losing these young members. The Membership Committee is also considering the overall membership structure of the Club in the light of recent developments in other Sydney Golf Clubs. Our President, Mr Ken Munro, has prepared a draft paper setting out various possible options as to the future membership structure. That paper is under review by the Membership Committee and will provide the basis for a more comprehensive report and recommendation to go to the Board for its consideration in the near future. New members will be welcomed and those achieving the milestone of 50 years membership of the Club acknowledged at the Clubs Christmas function on 30 November 2012. Glenn Coyne Chairman Membership Sub-Committee

MEMBERSHIP REPORT With the building of a new golf course and the accompanying inconvenience and disruption there is always a reduction in Membership greater than the normal attrition rate. As reported by the Chairman of the Membership Committee last year, 2011 was the year that a turn around occurred with regard to declining membership. That trend has continued throughout 2012 and up to the end of October we have had 83 new members, forty two (42) are full 7-Day playing members and fifteen (15) 5-Day playing members all of whom joined under the Spouse Discount Incentive. The balance is comprised of two (2) 10 year 7-Day playing members and a number of Intermediate 7-Day playing members. With the opening of our new course there has been considerable interest and consistent enquiry from prospective members. It is expected that with the resumption of trade days and the greater exposure of our course, membership applications will continue to come in. There had been three intermediate categories until September this year namely (18 to 24 years), (25 to 30 years) and (31 to 35 years). These categories applied to both 7-Day playing members and 5-Day playing members. These individual categories provided for a scaling of the full 7-Day or 5-Day playing subscriptions. In September the Board approved a subdivision of the first intermediate category into 18 to 22 years and 23 to 24 years as an acknowledgement that 18 to 22 year olds are in

THE FOUNDATION Members will no doubt be aware that the Manly Golf Club Foundation was established by Deed on 2nd November 2011. It was launched to Members on Wednesday 4th April 2012 when over one hundred members attended a dinner with five times British Open Winner Peter Thomson addressing the gathering. The purpose of the Foundation is set out in the Foundation brochure but is generally to help preserve and improve the standards and facilities of Manly Golf Club and to provide a fund which will cushion the impact of any unforeseen financial stress. As you are aware the Club is carrying an unprecedented level of debt which was used to fund the very successful course redesign. The Board is prudently focused on reducing this obligation as soon as possible which will make it difficult to implement other improvements in the immediate future.

11 Sunday this year and the Club Championships are on that day the story boards will be placed out on the Saturday 10th, Monday 12th and Tuesday 13th November. Last Post, one minute's silence and Reveille will be played at 11.00am on Remembrance Day. Our themes for this year have been: Remembering 1942; Fall of Singapore; Battle for Australia; Bombing of Northern Australia; Coral and Java Seas; Kokoda; Milne Bay; Gona; Buna; Western Desert; El Alamein. Our Anzac Day service was held on a fine sunny day and again we were fortunate to have our Bugler, Liam Chapman, play the Last Post and Reveille. Special cards were printed for the day and storyboards were displayed on the tees and designated areas honouring our members who fought in WWI. Some monies were raised for Legacy and Paul Fenn again represented the Ex-Service Section of the Club at the Manly Corso Service at 11.00am. Our Annual Golf Day and Dinner was held on Wednesday 26 September this year in conjunction with the normal Wednesday competition for the first time with am and pm shotgun starts and with the full course open. Again, special scorecards were printed for the occasion and new professional storyboards were placed on tees and areas honouring our WW1 members. Twenty-two Manly Golf Club Ex-Service Section members, 43 other Manly Golf Club members, 12 Ex-Service visitors and 3 current serving Navy members played in the Ex-Service competition. The ADF Cup was won by Navy. The 2nd AIF Cup and the Combined Services Cup were won by Ken Herringe. The Campaign and Services Cup was won by John Mortimer and the Ernie McDowell Salver for the best scratch score was won by Graham Kells. The service on the Terrace included a lament by our Piper, Mark Broadhead, for the first time before the Last Post and Reveille were played by Navy bugler, Able Seaman Andrew Hansch. The Dinner with 106 present was a resounding success and included a moving tribute on DVD to all those who have paid the supreme sacrifice in Afghanistan and a moving recital on compact disc of In Flanders Fields and the Ode by Tim Payne. The Apperly Room was adorned with

There are a number of projects which have been identified as worthwhile and it may be that a member of the Club would like to make a donation to the Foundation directing the gift to be spent on a specific project i.e.: A rubber walking track on the courses concrete paths, estimated cost $400,000. A first stage could be the replacement of the failing rubber outside the Clubhouse. North Links toilet (currently seeking Council approval, estimated cost $35,000. Lighting the dam, visible from the Clubhouse, estimated cost $15,000. Relocation of the Starters Hut, estimated costs $50,000. Upgrade of the Chapel dcor, estimated cost $50,000.

The Foundation currently has a fund of $23,000 held in trust by the Golf Club pending establishment of a Foundation bank account. It is anticipated that this $23,000 and accrued interest will be transferred this year. Contributions throughout received from: the year were

Manly Golf Club (establishment) T J Hartigan (in memory of) A W Gleeson (in memory of) P Stockdale (in memory of) Maurice Munsie Chairman

CLUB SECTIONS Ex-Service The WW1 story boards were placed on the tees for Remembrance Day 2011 and special cards were printed for both ladies and men to commemorate Remembrance Day. We raised some funds for Legacy with poppy sales over three days. As Remembrance Day falls on

12 mannequins in Navy, Army, Air Force and Nursing dress as well as framed pictures of our wartime participation over the years. Everyone received a copy of the Ex-Service Section booklet "Australians in Conflict" and also a "Celebration of a Century" newspaper produced by RSL Life Care which includes a comprehensive history of Australia's and the World's major events over the last 100 years. Our Guest Speaker, Colonel Andrew Condon CSC (R'td), President of Sydney Legacy, gave a magnificent address on the role and importance of Legacy as well as some very interesting stories of events in his varied and very successful military career. Near the end of the Dinner cheques from the Ex-Service Section, the Club and the Bowlers were presented to Legacy. The Committee wish to thank all the Club staff for their support on the day and for the Dinner. The meal presented for Dinner by Chef, Markus was outstanding. The AIF Matchplay Knockout Trophy was not awarded again this year as there was no play due to the course renovations. The Annual General Meeting was held on Wednesday 10 October. It is with regret that we report the loss of Geoffrey Cotton, Alan Doutreband, Boyd Chandler, Bob Higham and Frank Ellis during the reporting year. Lest we forget! Graham Kells Mens Open Draw Competition Well, we have negotiated a year of change both on course and off. The competition seems to have survived a name change intended to broadcast the opportunity to join in to the wider membership but it also seems the tag Seniors remains stuck. It is interesting to observe how our group has reacted to the evolving golf course. With the opening of the first nine we had to learn strategy to handle the hazards and our scores suffered. Now we have a full course and although we all have hit a ball into all the bunkers and water, the lies have improved and our scores have improved especially with the higher markers. Do not get too confident just yet as there are a few pink stakes to be removed and preferred lies will go. We will see. The full course has seen us return to Fridays and Mondays. We can use extra tees on Monday thus having a more concentrated finish and less waiting for hit off. Another great thing about the full course means that we can accommodate a fair number of visitors for our Xmas Gala Day. So here is your opportunity to invite your visitor to show our great course without paying a visitors fee to participate in a competition with great prizes and to enjoy a great luncheon with great company. The date is 6th December. There is a shogun start at 8.00am so be there by 7.30am. Bon Hawke Trophy Standing (as at 6 Nov) 1. B Wilding 190 points 2. J Johnson 169 points 3. J McCallum 153 4. D Froggatt 151 points 5. H Shore 149 points Update on the Perpetual trophy . . . as we all will recall the Club celebrated the completion of the final 7 holes of the course redevelopment with opening week com- mencing with the official opening on Friday, 13th July. Each of the competitions in the ensuing week celebrated the opening with the presentation of winners' trophies and also the inscription of the individual winners name to a perpetual trophy which would be competed for each year on the anniversary of the opening. The Mens Open Draw Competition celebrated the opening on Monday, 16th. Unfortunately a perpetual trophy was not prepared for the competition at that time. Following discussions we are pleased to advise that the club has arranged for a similar trophy for the competition. To the Board and the Match Committee our thanks for this consideration and our thanks to John Mater for taking our request forward. To all our staff, Front Office, Greens, Chef & Bar, Functions and the Golf Shop boys, thank

13 you for making our time at the Club over another year so enjoyable. Ron Norris I would like to thank Michael, Jason and the team for presenting the green in excellent condition every week, the girls in the office for their cheerful and efficient assistance, and the catering staff for providing us with some delightful lunches. I would also like to give a big thanks to John Geismar for organising the matches and to all those bowlers who have offered so much assistance to me in the short time I have been President. All Manly Golf Club members should be aware that you are most welcome to join us any Thursday at 12.45pm on the bowling green or for lunch every third Thursday of each month. All you need is a pair of soft shoes and a sense of humour, we can help you with the rest. Ken Reed with Paul Green just leading John Geismar and Bill Williams closely in contention but anyone could still make a late run and win.

Men Bowlers At the beginning of September, John Anderson felt that, due to a loss of mobility restricting him from being able to bowl, he would sadly have to resign from the position of President. However, he is still regularly attending our bowls days and luncheons and giving us the benefit of his wisdom which is very much appreciated. We welcome new members, Roger Scurr, John Nicholls, Ken Herringe and Neville Pulver to our ranks and are delighted to witness the return of Brian ODonnell and Les Gilbert to the green. We are pleased that with the opening of the new golf course and the rearrangement of competitions we are back to bowling on Thursdays with our monthly lunches returning to the third Thursday of each month. Sadly, in August it was decided by the Manly Golf Club Committee that in order to present the two blocks of land that were being offered for sale in a more favourable light, it would be necessary to demolish the Bowlers Shed which had provided us with shelter and kitchen and toilet facilities for many, many years. We are delighted that there is a plan in place for a modern Pavilion to be erected adjacent to the NE corner of the rink and we have high hopes that this will be in place for the beginning of the 2013 season in February. In the meantime the ground staff are erecting temporary cover for us each week and a golf cart is made available for transport of refreshments etc. Because of the loss of entertaining facilities it was decided to cancel our annual Bowlers v Golfers Day and Ladies and Mens Mixed Social Day this year, but we are planning to reinstate these events bigger and better next year. The Geoffrey Cotton Cup, for the leading Skip, was won jointly last year by John Anderson and George Anderson. This years competition is at an enthralling stage

Snooker The Snooker group has been rejuvenated by the joining of some new younger players, who have displayed skills not earlier shown at the table. With the 2012 Handicap and Open Championship tournaments now under way, Andrew Bolton, Stephen Bowhill and Phil Kells are showing our older and long- term members of the group that the established pecking order has been challenged. There are two more rounds of the competitions to play before the finals, which should be completed in December. It is pleasing to see more regular use of the snooker room of late, and it is often necessary to book the table to ensure ones preferred time is available to play the competition matches. The group will look at other competitions when the present tournaments are completed. All members of our Club are again encouraged to use the snooker room, and rediscover their lost talents - or enjoy the experience of learning new ones. Wayne Batchelar

14 WOMENS GOLF What an exciting year 2012 has been. After nearly three years our course reopened in July and we were able to play 18 holes for the first time since October 2009. There was a week of celebrations which included introducing a new Perpetual Trophy. During this week our Tuesday main competition day had 144 keen golfers eager to try out the new 18 hole course. Congratulations to Jean Kirk who won the women's Perpetual Trophy. This trophy will be played for annually to commemorate the opening of our challenging new course. On receiving the new ratings from Golf New South Wales, it confirms that the womens championships course is most difficult. We wish to thank all those members, who represented Manly in the various Interclub teams this year. It gave us pleasure to see new keen golfers having a try combining with old experienced players with success. We had some excellent overall results and we congratulate the Bronze II team who retained their title, the shield to be hung proudly in our locker room. Also a big thank you to the team convenors, caddies and spotters who helped throughout the season. Manly was successful in winning the Pewter Plate again, back-to-back wins, what a fantastic result. This competition is run by GNSW and is an 18 hole aggregate stableford event of a team of two in the handicap range 33-40. This year our team of Ali Gray & Janet Meagher played at Richmond Golf Club. Manly members continued to do well representing in other GNSW events. The Coronation Medal and Bronze Medallion both have their event competing on two different courses with two players from each club on each course and aggregating all four net scores. Our team for the Coronation Medal was Gemma Amate, Anne Christie, Tarina Foote & Jenny Van Munster, we were placed 7th in a field of over 60 clubs. The Bronze Medallion team of Lynne Amos, Philippa Barr, Beth Haskins & Janet Meagher were placed 5th in a field of over 60 clubs. These are excellent results, well done everyone. Club event winners this year included Dianne Spears and Virginia Wozniak (GNSW Bowl 4BBB), Helen Barker and Jill Makaroff (Canadian Foursomes - Club Presidents Trophy), Maureen Duesbury (Director of Golf Trophy), Jodie Lord (Patron's Trophy), Ali Gray and Janet Meagher (Fourball Cup) and Pauline Webb (Grandmother Trophy). Our colourful Presidents and Captains Day, a Team 4BBB v Par event was most successful with the monies raised over lunch donated to Breast Cancer Research. The Presidents Team won this year by a close margin with all players on that team rewarded for their efforts. This year Manly hosted the Manly Concord Cup a 4BBB v Par event of 22 teams for the first time in five years. The windy, hot day added to the difficulty but our local knowledge was crucial in helping us win the Cup for the first time since 2007. Although the Concord girls praised our new course they found it very difficult, as was reflected in the scores, and are keen to return. Our new members group played on Monday mornings have just completed the Mrs Clarke's Cup of which Kathryn Riisfeldt was successful in the match play final against Christine Shute. This year 6 new members joined the group. Guided by Jan Press we have seen marked improvements during the year of handicaps lowered and overall more confident golfers. Jan has organised for the group clinics with Phil Baird, rules sessions with Virginia Wozniak motivational talks with Anne Hutchison, and pace of play and etiquette discussions with Barbara Maggs. Proposers of new members are encouraged to take part in the Monday time slot whenever possible. Our Club Championships and Club Foursomes are in progress this month. Good Luck to everyone. Next year we will return to a full calendar of events. It will be a busy year, as in addition to our club events we will be hosting in February, as one of the peninsular golf courses the Barrenjoey Week of Golf Division 2, Division 3 and Foursomes. This event is always successful with over 500 entries. Thank

15 you to our delegates Christine Kells, Melody Clark & Jenny Van Munster. We are also hosting the GNSW Senior Women's Championship, GNSW Metropolitan 3BBB Classic Playoff and GNSW Pewter Plate. This will give MGC opportunities to showcase our new course. We would like to thank the many staff members at MGC. Our General Manager, Ed Hynes, administration staff, Denise, Sharyn & Michelle for their support and guidance; to Catherine Williams and her team who managed all our functions so efficiently; to Markus Pekert who has done an outstanding job of maintaining such a high standard with all the meals; to Phil Baird for his support to the womens program and we thank him for attending so many meetings, also to his team Ben, Nathan, Richie & Taylor for their assistance; to Michael Bradbery, Jason Martin and staff who have done an incredible job during the worst weather Sydney has seen for many years to keep the course playable in such difficult conditions; to Tarina Foote the Golf Coordinator for her great help in organising the many different fixtures we had this year. Finally, we would like to thank our committee, although a small but proactive team they have supported us and helped us during the year. We would like to thank Melody as Bronze II Convenor and the Links Journalist, Jan whose dedication in managing our new members group & enthusiastically taken on other tasks allocated to her. Not forgetting our Veteran Delegate Gail Fitzhardinge who continues to do a wonderful job and to Denise Catling who has looked after the open day book. I (Barbara) would especially like to thank all those who have supported me during my first year as Captain including Board Members, Staff and Members in general. It has been an interesting and challenging year. Feeling confident that the new committee of 2013 will easily step back into normal golf life, I (Anne) am retiring from committee after six years having seen us through many changes particularly in the last three years, some of which are Golf Australias introduction of handicap changes, the amalgamation of men and women state golfing bodies to GNSW and more locally at Manly the new Golf Coordinator and most important the disruptive course renovation with multiple courses played and all that it encompasses. We hope 2013 will be a more relaxed successful golfing year for all our women members and the Club in general. Anne Hutchison - Women's President Barbara Maggs - Women's Captain

Veteran Women Golfers Veteran women have again risen to the challenges presented by the new layout and have been consistently among the winners in all divisions. It has been another year in which the flexibility of the current handicap system under which a few shots could be gained to compensate for the tough conditions was appreciated. This would not have occurred in days gone by when the LGU system permitted immediate reductions but to gain shots back took years! Audrey Galloway was the intrepid winner of the Veteran and Senior Veteran Points score across all stroke rounds. Maureen Collins and Lorelle ONeill were runners-up. Winners at Manly of the VWGA Challenge Brooch were: Div 1 Gae Larcombe; Div 2 Margaret Meakin; Div 3 Sue Gaunt; Senior Vets Barbara Maggs. Margaret Meakins score of nett 66 was, not surprisingly, the best score in Division 2 across all clubs in NSW and as a result she has been awarded the prestigious VWGA Trophy for 2012. The Kathleen Armstrong Cup for best 3 nett scores was won by Gail Fitzhardinge from those keen contestants Kay Anderson and Maureen Collins. Having survived the creative stages of the new course it will be interesting for veterans to savour its progress in the year ahead as it too gains further maturity. Gail Fitzhardinge VWGA Delegate

16 Bridge Time flies when youre having fun and our Bridge Club provides much pleasure for many Manly Golf Club members and their guests. Our regular bridge days on the 1st and 3rd Wednesday each month, and team days whenever there is a 5th Wednesday, are well supported. My sincere thanks to our very amiable and efficient Director, Linda Abbenbroek, who does a wonderful job, and to Jean Kirk, who directs if Linda is unavailable. This year we have encouraged our players to come on their own if they dont have a partner. It has worked very well and we shall continue to do this in 2013. Our twilight bridge evenings have been very enjoyable and, I believe, are a wonderful opportunity to further integrate our bridge activities into the social life of the Club. Thanks to John Badger who directs these evenings, and to David Bardsley, who has directed when John is unavailable. We again participated in the Bridge for Brains Research Challenge. We were one of more than 100 Clubs that participated, and Manly players contributed $800 to this worthy charitable event. We have had a very successful year, with our Interclub Bridge events. Team no. 2 had a wonderful victory in its competition with Roseville, Killara and Chatswood Golf Clubs. The teams final score of 10.5 pts put it 3 pts ahead of 2nd placegetter Killara, then came Roseville and Chatswood. Congratulations ladies and thank you all for your participation. Our Invitation days with Pymble (12 pairs each Club) and Elanora (6 pairs each Club) have both seen wins for the Manly ladies, and a draw with Killara (12 pairs each Club). The final round of the No.1 Teams competition, saw a win for Monash but an overall win for Manly for the PLMM trophy for 2012. Well done ladies and thank you to everyone who has played in the Interclub events, and sincere thanks to Margaret Meakin and Sue Cameron for organising all the Interclub Teams and for their inspirational selections. John Roberts again gave us some excellent lessons and will do so again in 2013. I would encourage the ladies who are keen to play in the Interclub events to attend these lessons, because they are designed to improve defence and declarer play. My sincere thanks go to the office, catering and bar staff who are always so courteous, and look after us so well. Last, but certainly not least, thank you to the team who make everything flow smoothly, Sue Addison, our Treasurer, and her helper when necessary, Sue Salvage; Lindy Barnett, our Masterpoints Secretary; Jean Nicholls and all her willing helpers who set up the bridge tables, and Sue Cameron and Margaret Meakin for the Interclub teams selections. I have had a very enjoyable year, thank you. Diana Stewart

Lady Bowlers The year 2012 has been a disruptive one for our members as we have tried to carry on bowling in difficult circumstances. The Monday morning sessions have continued this year and our new players, with the encouragement of the older players, have enjoyed learning the game and our more experienced bowlers have been very patient and generous with their time with the newer bowlers. We are seeing this encouragement paying off as the year comes to a close. We welcomed back Toni Lynch who returned after a total hip replacement. We enjoyed our matches against the North Shore clubs of Pymble, Killara and Elanora and the highlight of our year was the handsome win we had against Pymble again in May, when we won 3 and 2. The return match against Killara was cancelled due to rain. Our final match due on October 11 when we return to Elanora has been postponed, and rescheduled for November due to rain. Our thanks go to the MGC members who play at other clubs and come to assist us in these Inter Club matches, as we

17 have had great difficulty making up teams from our regular players again due to illness and injury. Stalwart member Lorraine Cosgrove has had a difficult foot operation in the middle of the year and although recovery has been slow, she is now progressing well. Mona Allsop fractured her hip in July has recovered well and is now begun bowling again. Our Manly Lady Bowlers are very busy people, have many interests, and share their time as members of our Pennant golf and Bridge teams, so often their commitments clash with the bowling calendar. My thanks go to Shirley Wickenden and John Anderson who helped to relocate the bowls and the contents of the Bowling Shed from this facility, to Shirleys cellar, at very short notice, when the Shed was demolished while I was overseas. The sudden removal of the Bowlers Shed created great difficulties for the lady bowlers and greatly disrupted our hosting arrangements when Elanora came to play at Manly in August. Our facilities at present are far from satisfactory, without toilet, water, electricity or adequate shelter from sun and rain. Unless a replacement facility is built in the near future we are most reluctant to invite bowlers from our North Shore clubs to play inter club competition during 2013. Our Ground and Pro Shop staff have been excellent in helping us through this period by providing the use of a cart to transport bowls and to allow our members access to the Halfway house toilets, which is essential during bowling days. We hope that the construction of the new pavilion will be set as an urgent priority, given that we would like to set dates for 2013 matches. On a brighter note we participated in a milestone in our club with the 90th Birthday of Mona Allsop, which was celebrated with a fun day of bowls followed by a great cake and champagne.

With the completion of the renovations of the Council Kindergarten, we were left with fewer parking spaces and more restrictive times. To accommodate this we have adjusted our bowling times and we now commence bowling at 9.30am and this is working well. We anticipate there will be more adjustments to be made to playing times in 2013 with the commencement of construction on the adjoining blocks of land and the new Bowls Pavilion Betty Alexander

18
TREASURERS REPORT

From a financial perspective the 2011/12 financial year for MGC was a lot more difficult than anticipated. The main problem was the 3 month delay in the opening of the full course caused by the adverse weather. That upset the twelve month budget and cash-flow. With the course now complete, we should be able to return to normal trading and revenue streams and set about the task of paying off the debt. The course construction is now complete, save some sub-surface drainage. We have achieved what we set out to do and created a new golf course that is attracting new and younger members. The cost has been more than we would have liked, but the debt created was necessary to ensure the future of MGC. It was most important that we created an exclusive product that attracted these new, young members. This has in turn ensured the survival of MGC. The accompanying financial statements show a net deficit of $197,286 for the year ended 30th September 2012. This result is better than budget (by $15,195). After adding back depreciation and capital write-offs, this deficit becomes a cash flow surplus for the year of $634,713 before interest. Funds received from the construction levy and entrance fees have helped balance the budget. The interest and bank fees paid on loans this year was $583,055. This is the largest amount of interest we will pay in any year. The debt is being reduced over the next 4 months by revenue received from the sale of the 2 blocks of land in Suwarrow Street ($1,739,500) and the 3 properties being sold in Balgowlah Road. The debt will be substantially reduced to around $5.1 million. I feel the result for the year is satisfactory. The important thing now is to plan for the future and the repayment of the debt. We have in place an arrangement with the bank to pay off the debt over the next 18 years. The long term budgets and cash-flows we have prepared indicate this task is achievable. With satisfactory trading and economic conditions the debt could be paid off in ten years.

A comprehensive summary of the course redevelopment and associated costs is attached to this report (and available on the website). It is interesting reading and I recommend it to all members. It shows the total cost of construction for the new course was $15,738,057. We were lucky enough to start this project pre-GFC and receive the funds from the 50 year lease to the child care centre and then the post GFC grant from the government. Without these 2 payments the project would never have begun or been able to be finished. The completion of the project has secured the future of MGC. I turn now to the next 12 months. The club is slowly returning to normal trading. It has taken longer than anticipated as the bar and catering returns have only returned to profit in the last 2 months. We make good returns on corporate golf and here the bookings have been very encouraging. New members are providing excellent income in 2012 we gained 62 new seven day members and 83 new members overall. Even so, our total membership is still below the peak in 2003 (1543). However, the enquiry for membership is still strong and at present we have 17 new approvals awaiting membership. In 2012/13 we expect a net profit of $146,772. This will give us a net cash surplus of $952,314. This surplus includes the levies ($536,214) and entrance fees ($395,444). The estimated interest for the year will be $453,355. The debt will be reduced to $4,950,000. The 2013/14 year will be the last year of the construction levy. The interest paid on loans in that year will be $260,180. We expect at this time normal trading will produce a cash surplus sufficient to pay all overheads and reduce the debt by a further $150,000. My five years as Treasurer now comes to an end. It has been an interesting journey with many ups and downs with numerous roadbumps to negotiate. Fortunately, I have had capable and competent people on the finance committee through these past 5 interesting years. In the last year the Finance Committee, comprising Ken Munro, Bob Pfafflin, David Cleary and John OConnor have done a great

19 job and I sincerely thank them. The General Manager, Ed Hynes has also been invaluable with his input and financial expertise. Finally, my sincere thanks go to the Finance Manager, Lisa Wilson, who is excellent in her role, particularly with her skill and knowledge of financial costing, analysis and cash-flow preparation. Richard Holm

20 MANLY GOLF CLUB LIMITED

ABN 18 000 007 465 DIRECTORS REPORT The Directors of Manly Golf Club Limited submit herewith the Financial Report of the company for the year ended 30 September 2012 and report as follows:1. Board of Directors The names and particulars of the Directors of the company in office at the date of this report are:Name Kenneth John William Munro Retired Company Director Bachelor of Commerce (Econ) Post Graduate Diploma of Business, Uni of Toronto David John Cleary Senior Bank Executive Post Graduate Diploma in Banking Management John Mater Retired *Philip John Kells Company Director Richard Roy Holm Accountant/Financial Planner Bachelor of Arts (Economics). Glenn Michael Coyne Solicitor Dip. Law (Solicitors Admission Board) Supreme Court NSW Ron Norris Company Director Partner in Consulting Structural & Civil Engineering Practice John OConnor Company Director Retired Stockbroker Robert Oswald Pfafflin Company Director Chartered Accountant & Chartered Secretary Experience as a Director Special Responsibilities

12

President, Chairman of Course Redevelopment Committee and exofficio on all Committees

Vice President, Finance Committee, Membership Committee, Chairman Property Redevelopment Committee

Captain, Chairman of Match Committee, Greens Committee, Course Redevelopment Committee Vice Captain, Match Committee, Membership Committee

Treasurer, Chairman of Finance Committee, Match Committee

Chairman Membership Committee, Match Committee, Greens Committee

Chairman Greens Committee, Course Redevelopment Committee

Greens Committee, Finance Committee

Finance Committee, Membership Committee, Course Redevelopment Committee, Property Redevelopment Committee

*Retired from the Board on 5th October 2012

21 MANLY GOLF CLUB LIMITED

ABN 18 000 007 465 DIRECTORS REPORT

2. Board Meetings The following is a schedule of meetings attended by each of the Directors of the company during the financial year: No. of Board Meetings Eligible to Attend K J W Munro D J Cleary J Mater P Kells R R Holm G M Coyne R Norris J P OConnor R O Pfafflin 11 11 11 10 11 11 11 10 11 No. of Committee Meetings Eligible to Attend 25 11 15 10 18 8 8 8 15 No. of Committee Meetings Attended 22 10 13 9 16 5 8 8 13

No. of Board Meetings Attended 11 10 10 9 10 11 11 10 9

3. Principal Activities The principal activity of the entity during the period was the provision of golfing and social facilities for members. There was no change in the principal activity during the year. The entities short-term objectives are to: reduce debt; return the Club to trading profits following the disruption to normal trading du ring the Clubs redevelopment of its golf course. The entities long-term objectives are: to promote and conduct the game of golf and such other activities as the membership may require from time to time; to provide excellent facilities to enable members to enjoy both the sport of golf and the social conviviality associated with membership of a private golf club. To achieve these objectives the entity: employs suitable management, consultants and professionals committed to achieving its objectives. maintains rigorous financial controls over the activities of the entity and enforces a high level of corporate governance. constantly monitors trends in the golfing industry to ensure up to date practices .

22
The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states each member is required to contribute a maximum of $2.00 each towards meeting any outstanding obligations of the entity. At 30 September 2011, the collective amount members would contribute was $2,776 (2011: $2,828).

FOR AND ON BEHALF OF THE BOARD OF DIRECTORS and in accordance with its resolution: K J W Munro President . R R Holm Hon. Treasurer Dated at Manly this 12th day of November, 2012

23

AUDITORS INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 To the Directors of MANLY GOLF CLUB LIMITED I declare that, to the best of my knowledge and belief, during the year ended 30 September 2012 there has been: (i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit.

(ii)

CABEL Partners
Chartered Accountants

Phillip Browne Registered Company Auditor phillip@cabel.com.au

North Sydney Dated 12th day of November 2012

24

INDEPENDENT AUDITORS REPORT

Report on the Financial Report We have audited the accompanying financial report of Manly Golf Club Limited (the company), which comprises the statement of financial position as at 30 September 2012 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, a summary of significant accounting policies and other explanatory notes and the directors declaration.

The Responsibility of the Directors for the Financial Statements The Directors of the company are responsible for the preparation of a financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditors judgement, including the assessment of the risk of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entitys preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

25

INDEPENDENT AUDIT REPORT

Auditors Opinion In our opinion, the financial report of Manly Golf Club Limited is in accordance with Corporations Act 2001, including: (a) giving a true and fair view of the companys financial position as at 30 September 2012 and of their performance for the year ended on that date; and

(b)

complying with Australian Accounting Standards (including the Australian Accounting Interpretations).

CABEL Partners
Chartered Accountants

Phillip Browne Registered Company Auditor Cabel Partners 1 James Place North Sydney 2060 Dated 12th day of November 2012

27 MANLY GOLF CLUB LIMITED

DIRECTORS DECLARATION The Directors declare that: 1. The financial statements comprising the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements are in their opinion in accordance with the Corporations Act 2001; (a) (b) comply with Accounting Standards and the Corporations Regulations 2001; and give a true and fair view of the Clubs financial position as at 30 September 2012 and of its performance for the year ended on that date.

2.

In the Directors opinion, there are reasonable grounds to believe that the Club will be able to pay its debts as and when they become due and payable.

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

K J W Munro President

R R Holm Hon. Treasurer Dated at Manly this 12th day of November 2012

28 MANLY GOLF CLUB LIMITED

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 SEPTEMBER 2012

NOTE

2012 $

2011 $ 5,423,315 578,184 (756,276) (3,029,623) (498,908) (491,581) (140,304) (21,745) (1,305,574) (242,512) 828,800 (3,581,544) (2,995,256)

Revenues Other income Cost of sales Employee benefits expense Depreciation and amortisation expenses Finance costs Repairs and maintenance expense Audit expense Other expenses from ordinary activities Sub total Grant Received From Australian Govt For Stormwater Harvesting Net (loss) on write off of course development costs Loss for the year Other comprehensive income: Net Gain on Revaluation of Land Total other Comprehensive Income for the year

2 2 3

5,731,075 410,339 (788,796) (3,123,062)

3 3

(451,159) (583,055) (74,571)

(23,820) (1,294,237) (197,286) 1,262,900

(4,414,638) (3,349,024)

1,278,733 1,278,733

Comprehensive income attributable to members

(2,070,291)

(2,995,256)

The accompanying notes form part of this financial report.

29 MANLY GOLF CLUB LIMITED

STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2012 ASSETS CURRENT ASSETS Cash and cash equivalents Trade receivables & prepayments Inventories Property, Plant & Equipment Held for Sale TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, Plant & Equipment Investment Property TOTAL NON-CURRENT ASSETS TOTAL ASSETS 7 8 11,201,858 3,140,000 14,341,858 21,851,762 14,704,801 2,930,000 17,634,801 20,916,221 4 5 6 7 NOTE 2012 $ 538,842 2,473,889 151,932 4,345,241 7,509,904 2011 $ 735,063 2,386,351 160,006 3,281,420

LIABILITIES
CURRENT LIABILITIES Trade and other payables Short-term borrowings Short-term provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Payables Long-term borrowings Long-term provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS MEMBERS FUNDS Reserves Accumulated Losses TOTAL MEMBERS FUNDS 12,870,040 (8,810,382) 4,059,658 11,591,307 (5,461,358) 6,129,949 9 10 11 3,493,333 6,613,255 175,869 10,282,457 17,792,104 4,059,658 3,573,335 4,851,000 154,597 8,578,932 14,786,272 6,129,949 9 10 11 4,979,011 2,305,389 225,247 7,509,647 5,101,330 900,000 206,010 6,207,340

The accompanying notes form part of this financial report.

30 MANLY GOLF CLUB LIMITED

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 SEPTEMBER 2012

ASSET REVALUATION RESERVE

2012 $

2011 $ 11,591,307 11,591,307

Balance at the beginning of the year Valuations for the year (Decrease)/Increase in Freehold Land Disposals for the year Balance at end of the year

11,591,307 1,278,733 12,870,040

RETAINED EARNINGS Balance at the beginning of the year Loss attributable to members of the entity Balance at end of the year (5,461,358) (3,349,024) (8,810,382) (2,466,102) (2,995,256) (5,461,358)

The accompanying notes form part of this financial report.

31 MANLY GOLF CLUB LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2012

NOTE

2012 $

2011 $

CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers Payments to Suppliers & Employees GST received/(paid) Interest Paid NET CASH FLOW FROM OPERATING ACTIVITIES 19 7,438,212 (6,963,998) 121,437 (583,055) 12,596 6,160,900 (5,401,538) 174,259 (491,581) 442,040

CASH FLOWS FROM INVESTING ACTIVITIES Payments for Property, Plant & Equipment Proceeds from Sale of Plant & Equipment NET CASH OUTFLOW FROM INVESTING ACTIVITIES (3,376,461) (3,376,461) (3,708,236) (3,708,236)

CASH FLOW FROM FINANCING ACTIVITIES Proceeds from borrowings NET CASH FLOWS FROM FINANCING ACTIVITIES NET INCREASE/(DECREASE) IN CASH HELD CASH AT BEGINNING OF THE FINANCIAL YEAR CASH AT END OF THE FINANCIAL YEAR 19 3,167,644 3,167,644 (196,221) 735,063 538,842 3,151,000 3,151,000 (115,196) 850,259 735,063

The accompanying notes form part of this financial report.

32 MANLY GOLF CLUB LIMITED

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2012 The financial statements are for Manly Golf Club Limited as an individual entity, incorporated and domiciled in Australia. Manly Golf Club Limited is a company limited by guarantee. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Accounting Policies (a) Revenue Revenue for annual golf subscriptions is recognised in the year to which it relates while revenue from sale of goods is recognised upon the delivery of goods to customers. Interest Revenue Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset. Rental Income Rental Income is recognised as it accrues. Where rental receipts are received in advance of the lease term, the rental income is recognised over the term of the rental agreement. Other Income Income from other sources is recognised when the fee in respect of other products or services provided is receivable. All revenue is stated net of the amount of goods and services tax (GST). (b) Inventories Inventories are measured at the lower of cost and current replacement cost. (c) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, accumulated depreciation and impairment losses. Property Freehold land is shown at its fair value, based on periodic valuations by independent, qualified valuers.

33 MANLY GOLF CLUB LIMITED

If the carrying amount of a class of assets is increased as a result of a revaluation, the net revaluation increase shall be recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the net revaluation increase shall be recognised on profit and loss to the extent that it reverses a net revaluation decrease in the same class of assets previously recognised profit or loss. If the carrying amount of a class of assets is decreased as a result of a revaluation, the net revaluation decrease shall be recognised in profit and loss. However, the net revaluation decrease shall be recognised in other comprehensive income to the extent of any credit balance existing in any revaluation surplus in respect of that same class of asset. The net revaluation decrease recognised in other comprehensive income reduces the amount accumulated in equity under the heading of revaluation surplus. Revaluation increase and decreases relating to individual assets within a class of property, plant and equipment shall be offset against one another within that class but shall not be offset in respect of assets in different classes. Buildings, Plant and Equipment The carrying amount of buildings, plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. Development Costs Development costs occur where the asset is in the process of being designed, approved and constructed. Depreciation The depreciable amount of all fixed assets including capitalised lease assets is depreciated on the straight-line basis over their useful lives to the economic entity commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Asset Revaluation Reserve The asset revaluation reserve is used to record increments and decrements on the revaluation of freehold land. The balance standing to the credit of the reserve is not distributable. Class of Fixed Asset Buildings and Improvements Plant, Equipment, Furniture & Fittings Course Watering System Depreciation Rate 4% 5 30% 5%

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. Asset classes carrying amount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the statement of comprehensive income. (d) Investment Property Investment property, comprising of freehold land, is held to generate long-term rental yields. The tenant lease is on an arms length basis. Investment property is carried at fair value, determined by the Valuer General. Changes to fair value arising on revaluation are recognised as stated in (c) above. (e) Leases Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the period in which they are incurred.

34 MANLY GOLF CLUB LIMITED

(f) Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified at fair value through the profit or loss in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. (g) Impairment of assets At each reporting date, the entity reviews the carrying values of its tangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the assets fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the statement of comprehensive income. Where the future economic benefits of the assets are not primarily dependent upon on the assets ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of an asset class, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong. (h) Employee Benefits Provision is made for the entitys liability for employee benefits arising from services rendered by employees to Balance Sheet date. Employee benefits expected to be settled within one year together with benefits arising from wages, salaries and annual leave which may be settled after one year, have been measured at the amounts expected to be paid when the liability is settled plus related on costs. Other employee benefits payable later than one year have been measured at the net present value. Contributions are made by the entity to an employee superannuation fund and are charged as expenses when incurred. (i) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at-call with banks and other short-term highly liquid investments with original maturities of three months or less. (j) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and payables in the Balance Sheet are shown inclusive of GST. Cash flows are presented in the statement of cash flows inclusive of GST where applicable. (k) Income Tax No provision for income tax has been raised as the entity is exempt from income tax under Section 50-45 of the Income Tax Assessment Act 1997.

35 MANLY GOLF CLUB LIMITED

(l) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (m) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform with changes in presentation for the current financial year. (n) Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the entity. Key estimates Impairment The entity assesses impairment at each reporting date by evaluating conditions specific to the entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Fair value less costs to sell or current replacement cost calculations performed in assessing recoverable amounts incorporate a number of key estimates.

(o)

New Accounting Standards for Application in Future Periods The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods. The company has decided against early adoption of these standards.

36 MANLY GOLF CLUB LIMITED

2012 $ 2. REVENUE AND OTHER INCOME (a) Revenue Subscriptions Sale of goods Entrance fees Visitors and Corporate Golf Fees Other revenue Total revenue (b) Other income Property Rental Construction Levy Profit on sale of non-current assets Interest Total Other Income TOTAL REVENUE AND OTHER INCOME 3. PROFIT FOR THE YEAR Profit from operations has been determined after: a. Expenses Cost of Sales Bar Catering Golf Shop 2011 $

2,895,333 2,065,000 567,779 175,727 27,236 5,731,075

2,753,876 2,001,450 567,869 86,026 14,094 5,423,315

130,051 260,425 11,909 7,954 410,339 6,141,414

134,498 407,421 36,265 578,184 6,001,499

262,393 341,130 185,273 788,796

244,471 336,317 175,488 756,276

Depreciation and amortisation of non-current assets Depreciation and amortisation Finance Costs Commonwealth Bank Pastlink Properties Ltd Auditor Remuneration Audit Services Other services - Grant Acquittal b. Significant Revenues and Expenses Net gain/(loss) on Disposal of PPE, Land and Buildings Proceeds on disposal Disposals at WDV Net gain on disposal as at 30 September 2012 Net (loss) on write off of course development costs 4. CASH AND CASH EQUIVALENTS CURRENT Cash on Hand Cash at Bank

451,159 476,617 106,438 583,055 22,145 1,675 23,820

498,908 491,581 491,581 20,120 1,625 21,745

11,909 11,909 (4,414,638)

(43,002) (43,002) (3,581,544)

6,950 531,892 538,842

7,950 727,113 735,063

37 MANLY GOLF CLUB LIMITED

TRADE, PREPAYMENTS AND OTHER RECEIVABLES CURRENT Subscriptions Owing Sundry Debtors Prepayments 2012 $ 2011 $

5.

2,229,408 2,144,875 147,401 127,574 97,080 113,902 2,473,889 2,386,351 The company does not have any material risk exposure to any single receivable or group of receivables. 6. INVENTORIES CURRENT AT COST Bar Golf Shop

49,056 102,876 151,932

65,536 94,470 160,006

7.

PROPERTY, PLANT AND EQUIPMENT Current Property, Plant and Equipment Held for Sale Cottages expected to be sold 2012/2013 Land sold under contract to be settled 2012 Total Current Property, Plant and Equipment Non Current Property, Plant and Equipment Freehold Land and Development Costs Golf course at valuation by Preston Rowe Patterson 30/9/12 - Development costs at cost net of Grant - Write-off to Profit and Loss - Housing development at cost Golf course at valuation 30/9/12 (2011 1/7/2008) Other Land at valuation 1/7/2008 Buildings and Improvements - Buildings at valuation 1/1/1983 - Cottages at valuation 3/9/2009 - Additions at cost - Improvements at cost Less Accumulated Depreciation

2,554,805 1,790,436 4,345,241

7,265,000 3,151,738 (3,151,738) 7,265,000 7,265,000 1,819,963 711,668 2,793,428 5,325,059 (1,984,585) 3,340,474

3,985,831 2,752,744 (2,752,744) 17,021 4,002,852 3,856,400 7,859,252 1,819,963 2,638,763 706,341 2,793,428 7,958,495 (1,832,366) 6,126,129

Plant, Equipment, Furniture & Fittings Plant, Equipment, Furniture & Fittings at cost Less Accumulated Depreciation Net Plant, Equipment, Furniture & Fittings at cost Plant, Equipment, Furniture & Fittings leased Less Accumulated Amortisation Net Plant, Equipment, Furniture & Fittings leased

3,653,430 (3,160,157) 493,273 112,998 (9,887) 103,111

3,669,064 (2,949,644) 719,420 -

Total Non Current Property, Plant and Equipment

11,201,858

14,704,801

38 MANLY GOLF CLUB LIMITED

Asset Revaluations The freehold land was independently valued on 30/9/2012 by Preston Rowe Patterson and reflected the physical conditions and the way in which the land could be used. The cottages at 28 and 32 Balgowlah Rd were valued at 3/9/2009 by LJ Hooker Balgowlah and reflected the current market conditions and the location of the properties. These properties will be sold during 2012/3. The cottage at 30 Balgowlah Rd has been sold and settlement of this contract will occur during December 2012. Freehold land at 15 and 17 Suwarrow Sts have been sold and contracts have been exchanged. Settlement of these contracts will occur during December 2012. At 30 September 2012 the directors reviewed the key assumptions made by the valuers at 30/9/2012 and 3/9/2009. They have concluded that these assumptions remain materially unchanged, and are satisfied that the carrying value does not exceed the recoverable amount of land and buildings at 30 September 2012. Core and Non Core Property Core Property includes the Clubhouse, Golf Course and Bowling Green at 38-40 Balgowlah Rd Fairlight and Lot 10 Kenneth Rd Balgowlah. Non Core Property includes 28, 30 and 32-34 Balgowlah Rd Fairlight, 15 and 17 Suwarrow Sts and the investment property at 87-95 Balgowlah Rd Fairlight.

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

39 MANLY GOLF CLUB LIMITED

2012 Carrying amount at beginning of year Reclassify Revalue Write off Disposals Additions Depreciation
Carrying amount at end of year

Freehold Land 7,859,252 (1,690,514) 1,052,769 (3,151,738) 3,195,231 7,265,000

Buildings and Improvements 6,126,129 (2,638,763) 5,327 (152,219) 3,340,474

Plant, Equipment, Furniture & Fittings 719,420 62,726 (288,873) 493,273

Leased Plant and Equipment 112,998 (9,887) 103,111

Total Non Current 14,704,801 (4,329,277) 1,052,769 (3,151,738) 3,376,282 (450,979) 11,201,858

Current Land & Buildings Held for Sale 4,329,277 15,964 4,345,241

Total Current & Non-Current 14,704,801 1,068,733 (3,151,738) 3,376,282 (450,979) 15,547,099

2011
Carrying amount at beginning of year

Freehold Land

Buildings and Improvements

Plant, Equipment, Furniture & Fittings

Course Watering System

Total

Current Land & Buildings Held for Sale -

Total Current & Non-Current

7,842,231 (2,752,744) 2,769,765 7,859,252

5,367,834 910,089 (151,794) 6,126,129 -

991,351 (8,616) 71,385 (334,700) 719,420 -

46,800

14,248,216 (2,752,744)

14,248,216 ((2,752,744) (43,002) 3,751,239 (498,908) 14,704,801

Write off Disposals Additions Depreciation

Carrying amount at end of year

(34,386)

(43,002) 3,751,239

(12,414)

(498,908) 14,704,801

40 MANLY GOLF CLUB LIMITED

2012 $ 8. INVESTMENT PROPERTY Balance at the beginning of year Revalue VG 1/7/2011 Balance at end of year 2,930,000 210,000 3,140,000 2011 $ 2,930,000 2,930,000

The Investment Property which comprises of freehold land has been leased for a period of 50 years commencing on 4 June 2007. The lease agreement requires 4, six monthly payments of $1m each commencing on 4 June 2007 and are not refundable under any circumstances. 9. TRADE & OTHER PAYABLES CURRENT Trade Creditors Sundry Creditors and Accruals Rent in Advance Goods and Services Tax Subscriptions in Advance NON-CURRENT Rent in Advance 10. BORROWINGS CURRENT Commonwealth Bank Business Loans Commonwealth Bank Finance Leases Pastlink Properties Holdings Pty Ltd 17 NON-CURRENT Commonwealth Bank Business Loans Commonwealth Bank Business Property Loan Commonwealth Bank Finance Leases

171,708 415,496 80,000 352,057 3,959,750 4,979,011 3,493,333

265,358 460,040 80,000 348,828 3,947,104 5,101,330 3,573,335

380,587 18,364 1,906,438 2,305,389

900,000 900,000

5,929,413 4,851,000 600,000 83,842 17 6,613,255 4,851,000 The companys loan with Pastlink Properties Holdings Pty Ltd ACN 104 394 336 is secured by an unregistered mortgage over 28 and 32-34 Balgowlah Rd Fairlight. The companys loan from the Commonwealth Bank is available as a line of credit. The bank business loan is secured by a registered first mortgage over all property (excluding 28 and 32-34 Balgowlah Rd, Fairlight and 15-17 Suwarrow St, Balgowlah) and an equitable charge over all the company assets. The bank business property loan is secured by a registered first mortgage over 30 Balgowlah Rd, Fairlight. 11. PROVISIONS Opening Balance at 1 October 2011 Additional provisions raised during year Amounts Used Balance at 30 September 2012 Analysis of total provisions Current Non-Current

360,607 231,005 (190,496) 401,116

325,950 233,640 (198,983) 360,607

225,247 175,869 401,116

206,010 154,597 360,607

Provision for Long-Term Employee Benefits A provision has been recognised for employee entitlements relating to long- service leave. The measurement and Recognition criteria relating to employee benefits have been included in note 1 to this report.

41 MANLY GOLF CLUB LIMITED

12. DIRECTORS DISCLOSURES A Directors The names of each person holding the position of Director of Manly Golf Club Limited during the financial year are: K J W Munro, R O Pfafflin,, R R Holm, D J Cleary, J Mater, G M Coyne, P J Kells, R W Norris and J P OConnor. Remuneration of Directors No Director received any remuneration from the Company during the year, other than in line with expense approval in the resolution at the 2011 Annual General Meeting.

13.

KEY MANAGEMENT PERSONNEL COMPENSATION Short Term Benefits $ 2012 Total compensation (6 personnel) 2011 Total compensation (6 personnel) 767,893 820,664 Post employment Benefits $ -

Total $ 767,893 820,664

14.

RELATED PARTY TRANSACTIONS During the year the company had a loan agreement with Pastlink Properties Holdings Pty Ltd for $1,906,438. RN Smith is a director of Pastlink Properties Holdings Pty Ltd. RN Smith is a former director of Manly Golf Club Limited. The purpose of this short term loan is to fund the course redevelopment pending the sales of assets. The loan is secured by a non registered mortgage over 28 and 32-34 Balgowlah Rd, Fairlight. The loan is repayable on the sale of 28 and 32-34 Balgowlah Rd, Fairlight.

15.

COMPANY LIMITED BY GUARANTEE The company is a company limited by guarantee under the Corporations Act. If the company is wound up, the Memorandum of Association states that each member, or within one year thereafter, is required to contribute a maximum of $2 each towards meeting any outstanding obligations of the company. MEMBERS SUBSCRIPTIONS RECEIVED IN ADVANCE Amounts received from members in respect of subscriptions for 2012/2013 are included in the statement of financial position under payables. FINANCIAL INSTRUMENTS Financial Risk Management The entitys financial instruments consist mainly of deposits with banks, short -term investments, accounts receivable and payable. The company does not have any derivative instruments at 30 September 2012. Financial Risks The main risks the entity is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. (a) Credit risk The entity does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the entity.

16.

17.

42 MANLY GOLF CLUB LIMITED

(b)

Liquidity risk The entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained Financial liability and financial asset maturity analysis Financial liabilities due for payment Within 1 year 1-5 Years 2012 2012 $ $ Pastlink Properties Loan* 1,906,438 CBA Business Bill Facility 380,587 CBA Business Loan 600,000 CBA Finance Leases 18,364 83,842 Trade and other Payables 4,977,681 Financial assets cash flow realisable Cash & cash equivalents

Over 5 years 2012 $ 5,929,413 -

Total $ 1,906,438 6,310,000 600,000 102,206 4,977,681

538,842

538,842

43 MANLY GOLF CLUB LIMITED

(c) Market risk Interest rate risk Interest rate risk is managed with a mixture of fixed and floating rate debt. At 30 September 2012, $4,000,000 of the CBA Better Business Bill facility has a fixed interest rate. The remaining $2,310,000 was at variable rates. The CBA Business loan has a variable interest rate. The Pastlink Properties loan has a fixed interest rate payable on repayment of the loan. Exposure to interest rate risk arises on financial assets and financial liabilities at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The company is also exposed to earnings volatility on floating rate instruments. Weighted Average Effective Interest Rate 2012 2011 % % Financial Assets Cash at Hand Cash at Bank Total Financial Assets Financial Liabilities Pastlink Loan* CBA Fixed Bill Fixed Bill Variable Bill Variable Loan Finance Leases Total Financial Liabilities 7.00 8.33 9.02 4.14 7.65 7.16 7.00 8.33 8.95 7.13 8.31 1,906,438 900,000 1,906,438 900,000 3.95 5.00 6,950 531,892 7,950 727,113 531,892 727,113 6,950 7,950 2012 $

Total

Floating Interest Rate

Fixed Interest Rate

Non Interest Bearing

2011 $

2012 $

2011 $

2012 $

2011 $

2012 $

2011 $

538,842

735,063

531,892

727,113

6,950

7,950

2,000,000 2,000,000 2,000,000 2,000,000 2,310,000 850,000 2,310,000 600,000 1,000 600,000 102,206 8,918,644 5,751,000 2,910,000

2,000,000 2,000,000 2,000,000 2,000,000 850,000 1,000 102,206 851,000 6,008,644 4,900,000

*Pastlink Properties Holdings Pty Ltd loan Price Risk Price risk relates to the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market price securities. The entity is not exposed to any material commodity price risk.

44 MANLY GOLF CLUB LIMITED

(d) Net Fair Values The net fair values of assets and liabilities approximate their carrying value. No financial assets and financial liabilities are readily traded on organised markets. Financial assets where the carrying amount exceeds net fair values have not been written down as the company entity intends to hold these assets to maturity. The aggregate net fair values and carrying amounts of financial assets and liabilities are disclosed in the balance sheet and in the notes to the financial statements.

18.

EVENTS AFTER BALANCE SHEET DATE On 20th October 2012, the Club sold 30 Balgowlah Rd, Fairlight at auction for $800,000. Settlement is expected to take place in December 2012. Settlement for both properties 15 and 17 Suwarrow Sts, is expected to take place in December 2012. On 25th October 2012 a debt repayment was made to Pastlink Properties of $900,000 plus $75,825.20 interest .

19.

NOTES TO STATEMENT OF CASH FLOWS RECONCILIATION OF CASH For the purpose of the Cash Flow Statements, cash includes cash on hand and in banks and investments in money market instruments net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the Cash Flow Statements is reconciled to the related items in the Balance Sheets as follows:

Cash at bank Cash on hand

2012 $ 531,892 6,950 538,842

2011 $ 727,113 7,950 735,063

RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH PROFIT AFTER INCOME TAX Net Operating Loss Non cash flows Depreciation Unrealised gain Write-off of course redevelopment costs CHANGES IN OPERATING ASSETS & LIABILITIES (Increase)/Decrease in Debtors Decrease in Stock on Hand Decrease/(Increase) in Prepayments and Deposits Increase/(Decrease) in Trade Creditors Increase/(Decrease) in Sundry Creditors/Accruals Increase/(Decrease) in Subscriptions in Advance Increase in Other Provisions NET CASH INFLOW FROM OPERATING ACTIVITIES

(3,349,024) 451,159 3,151,738

(2,995,256) 498,908 2,752,744

(84,533) 8,074 (3,006) (93,650) (41,315) (67,356) 40,509 12,596

(669,400) 2,781 (18,407) (268,790) 158,735 946,069 34,656 442,040

45 MANLY GOLF CLUB LIMITED

2012 $ 20. CAPITAL AND LEASING COMMITMENTS Capital expenditure commitments contracted for: VS Flemming Pty Ltd Course Redevelopment Stage 1 North Links Redevelopment Stage 2B South Links Payable not later than 12 months 2011 $

46,477

142,687 4,613,769

Operating Lease Commitments Non-cancellable operating lease commitments contracted for but not capitalised in the financial statements Payable minimum lease payments - not later than 12 months 14,884 14,884 - later than 12 months but not later than 5 years 20,823 35,707 35,707 50,591

21.

SEGMENT INFORMATION The Company operates predominantly in the Club industry. The principal activities of the Company were the operation of a Golf Club. The Company operates in one geographical area, being Manly, New South Wales, and Australia. ENTITY DETAILS The registered office and the principal place of business is: Manly Golf Club Limited 38-40 Balgowlah Rd Manly NSW 2095

22.

46

INFORMATION FOR THE DIRECTORS ON THE 2012 FINANCIAL STATEMENTS ADDITIONAL INFORMATION The Trading Statement and Notes to the Trading Statement contained on pages 47 to 49 for the year ended 30 September 2012, have been prepared from the accounting and other records of Manly Golf Club Limited and have been subject to the tests and other auditing procedures applied in our examination of the financial statements for the year ended 30 September 2012.

The Trading Statement and Notes to the Trading Statement do not form part of the financial report in respect of the year ended 30 September 2012, referred to in our report to members and accordingly we do not express an audit opinion thereon.

CABEL Partners
Chartered Accountants

Phillip Browne phillip@cabel.com.au North Sydney Dated this 12th of November 2012

47 MANLY GOLF CLUB LIMITED

TRADING STATEMENT FOR YEAR ENDED 30 SEPTEMBER 2012 Note GENERAL & COURSE INCOME Subscriptions and Levies Construction Levy Rent Other income including interest HOUSE / GOLF SHOP TRADING INCOME BAR Sales Cost of sales Gross profit Gross Profit % CATERING Sales Cost of sales Gross profit Gross Profit % BAR & CATERING Wages Other Expenses Trading Deficit GOLF AND GOLF SHOP Merchandise sales Cost of sales Gross profit merchandise sales Gross Profit % Golf visitors and comp fees revenue Other Revenue - Cart hire, tuition, storage Sub total gross profit and other revenue Wages Other Expenses Trading Deficit TOTAL TRADING INCOME Less: Expenses NET TRADING DEFICIT FROM ORDINARY ACTIVITIES ADD: Entrance Fees Rent 87 Balgowlah Rd Gain/(loss) on disposal of fixed assets Interest and bank loan fees LESS: Grant received Australian Govt Stormwater Harvesting Golf Course Redevelopment Costs NET OPERATING (LOSS) Accumulated losses at the beginning of the financial year ACCUMULATED LOSSES AT FINANCIAL YEAR END This report should be read in conjunction with the attached disclaimer. 2012 $ 2,895,333 260,425 50,050 35,189 3,240,997 2011 $ 2,753,876 407,420 54,500 50,360 3,266,156

661,795 262,393 399,402 60.4% 983,591 341,130 642,461 65.3% 1,027,325 135,490 (120,952)

602,517 244,471 358,046 59.4% 999,455 336,317 663,138 66.4% 1,017,563 152,079 (148,458)

276,277 185,273 91,004 32.9% 175,727 143,338 410,069 346,841 112,031 (48,803) 3,071,242 3,345,163 (273,921) 567,779 80,002 11,909 (583,055) (197,286) 1,262,900 (4,414,638) (3,349,024) (5,461,358) (8,810,382)

260,205 175,488 84,717 32.6% 86,026 139,273 310,016 329,818 96,028 (115,830) 3,001,868 3,357,664 (355,796) 567,869 79,998 (43,002) (491,581) (242,512) 828,800 (3,581,544) (2,995,256) (2,466,102) (5,461,358)

48 MANLY GOLF CLUB LIMITED

NOTES TO TRADING STATEMENT FOR YEAR ENDED 30 SEPTEMBER 2012 2012 $ 1,748,896 420,919 397,550 334,021 66,816 51,745 47,680 47,404 46,990 40,679 27,414 3 23,820 18,536 15,106 14,146 13,458 10,160 7,861 7,857 2,409 1,696 3,345,163 2011 $ 1,682,242 468,668 407,358 392,101 71,173 51,539 44,946 48,519 32,540 43,206 7,750 21,745 15,503 16,767 15,627 3,575 9,867 11,165 11,970 827 576 3,357,664

NOTE A: EXPENDITURE Employee costs and entitlements Depreciation excluding carts Course maintenance House expenses Insurance Computer Expenses Affiliation fees Postage, printing, stationery and telephone Marketing / advertising Rates Donations and subscriptions Auditors remuneration Security and fire monitoring Members amenities Rent equipment Sundry expenses Fixture books Bank and credit card charges Directors expenses Repairs houses Legal expenses

Notes B C D

NOTE B: EMPLOYEE COSTS AND ENTITLEMENTS Salaries, wages and contractors 2012 $ 1,089,763 544,417 51,932 49,363 11,767 1,654 1,748,896 2011 $ 1,052,774 522,261 45,986 53,626 5,869 1,726 1,682,242

Course Administration House Staff Meals and uniforms Staff Training Staff Recruitment

Note: Salary and Wages on costs for Staff Superannuation, Workers Compensation Insurance, Payroll Tax and Fringe Benefits Tax have been included in the respective salary and wage cost centres. This report should be read in conjunction with the attached disclaimer.

49 MANLY GOLF CLUB LIMITED

NOTES TO TRADING STATEMENT FOR YEAR ENDED 30 SEPTEMBER 2012

NOTE C: COURSE MAINTENANCE 2012 $ 145,901 121,764 33,219 32,252 23,495 23,160 17,759 397,550 2011 $ 119,002 119,114 85,367 36,060 12,770 20,769 14,276 407,358

General Maintenance Fertilisers and chemicals Water Repairs to plant Sand and Soil and Bunkers Petrol and Oil Power

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

NOTE D: HOUSE EXPENSES 2012 $ 109,298 78,149 74,571 38,996 15,931 8,843 8,233 334,021 2011 $ 106,584 74,233 140,304 40,065 24,672 6,243 392,101

Cleaning contract, materials, linen and paper products Light, power, gas and water Building and furniture repairs and improvements Laundry Garbage service and pest control Soaps, toiletries, flowers and sundries Water

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

50 MANLY GOLF CLUB LIMITED THE PLAY

DECEMBER 2011 TO NOVEMBER 2012

NAME OF EVENT Club Champion A Reserve Champion B Grade Champion C Grade Champion Seniors Champion Veterans Champion Colts Champion Junior Champion Foursomes Champions Mixed Foursomes Champions Fourball Champions Patrons Trophy Winner Presidents Trophy Winner G J Wilkinson Shield Winners David Thomas Memorial Trophy Winner Manly Golfers Cup Winner C F W Lloyd Cup Winners Salonica Cup Winner Grandfather's Cup Winner E L Apperly Winner J B Ferrier Winner Easter Cup Winner AIF Cup 2 AIF Winner Clubhouse Cup Winners J S Macqueen Trophy Winner Founders Cup Winner Indooroopilly Trophy Winner Father & Son Trophy Winners Manly Links MensTrophy Winner Manly Links 2BBB Medley Winners Manly Links Mens Draw Competition Winner
nd

Andrew Bryon John McCafferty Garrick Bryant Ric Hedley Phil Speer John Bergin Tim Paul Charlie Adare Andrew Bryon & David King Julian Jackson & Kate Thomas Andrew Bryon & Michael Hill John Bell Marios Chrysiliou Colin & Marianne Rudd Gavin Williams Andrew Bolton Laurie Leech & Philip Garden Gary Susans Gavin Fish Philip Speer Gavin Williams Graham Kells Ken Herringe Gerry Elkan & Fay Cochran Martin Patience Mark McDougall Brian Gordon Roger & Warwick Amos Warwick Dawson Justin White & Stuart Penny Jeffrey Johnson

51 MANLY GOLF CLUB LIMITED

MONTHLY MEDAL WINNERS 2012

DECEMBER 2011 A Grade B Grade C Grade

Anthony Smith Russell Wood Ken Tuckey

JANUARY 2012 A Grade B Grade C Grade

Leeroy Martin Mark Siebold Paul Fenn

FEBRUARY 2012 A Grade B Grade C Grade

Leeroy Martin Russ Lewis Andrew Bolton

MARCH 2012 A Grade B Grade C Grade

Darryl Tweedale John Bell Frank Crott

APRIL 2012 A Grade B Grade C Grade

Brent Haverfield Graham Kells Keith Andrews

MAY 2012 A Grade B Grade C Grade

Mark McDougall Mike Clarkson Bruce Barry

JUNE 2012 A Grade B Grade C Grade

Anthony Smith Nathan Defries Bill Walker

JULY 2012 A Grade B Grade C Grade

Kim Gilbert Gary Susans Martin Patience

AUGUST 2012 A Grade B Grade C Grade

Anthony King Ray Beattie Martin Patience

SEPTEMBER 2012 A Grade B Grade C Grade

Philip Speer David Buckley Steve Mater

OCTOBER 2012 A Grade B Grade C Grade

Gavin Williams Michael Taylor Kevin Hurley

NOVEMBER 2012 A Grade B Grade C Grade

Robert Guest Gerry Elkan Michael Horton

52 WOMENS EVENTS 2011/12

Trophy Name
Canadian Foursomes Club Presidents Trophy Fourball Cup Women Captain's Trophy Links Trophy Grandmother's Trophy Patron's Trophy Dunlop Cup (President's & Captain's Day) Director Of Golf Trophy Elizabeth Cavill Trophy Winifred Triglone Salver Champion of Champions 2009 Doris Thompson Trophy Best Scratch over Season Silver Best Scratch over Season Bronze Most Reduced handicap Div I Most Reduced handicap Div II Most Reduced handicap Div III Wilkinson Memorial Trophy (Most Improved) Most Improved Div III Mrs Clarkes Cup Club and Foursomes Championships Club Foursomes Championship Bronze Foursomes Championship Club Championship Club Championship Flight Bronze Championship Bronze Championship Flight Bronze II Championship -Winnie Emanuel Veteran's Trophy Veteran's Challenge Brooch Div I Veteran's Challenge Brooch Div II Veteran's Challenge Brooch Div III Senior Vet Veteran's Women's Golf Point Score K M Armstrong Cup Mosman Cup Senior Veteran's Women's Golf Point Score Gobblers Birdie & Eclectic Competition Birdie Div I Birdie Div II Birdie Div III Birdie Weekend

Winner/RU
Winners Winners Runners-up Winner Winner Winner Winners Winner Winner Winner Winner Winner Winner Winner Winner Winner Winner Winner Winners Winner Winners Runners-up Winners Runners-up Winner Runner-up Winner Runner-up Winner Runner-up Winner Runner-up Winner Runner-up Winner Winner Winner Winner Winner Runner-up Winner Runner-up Winner Winner Winner Winner Winner Winner Winner

Name
Helen Barker & Jill Makaroff Janet Meagher & Ali Gray Helen Crott & Noreen Carmichael Jean Kirk Pauline Webb Jodie Lord Betty Alexander, Kerry Kelly, Sue Gaunt & Pauline Webb Maureen Duesbury Margaret Meakin Maureen Collins Not played Margaret Bennett Frances Nicholas Margaret Meakin Frances Nicholas Philippa Barr Janet Meagher Silver Jodie Lord, Bronze Beth Haskins Ali Gray & Tamara Madden Kathryn Riisfeldt Gae Larcombe & Anne Hutchison Christine Gordon & Maureen Collins Margaret Dash & Judy Walmsley Janet Meagher & Ali Gray Chris Gordon Tarina Foote Suzanne Simaitis Jodie Lord Gail Fitzhardinge Vanna Mutton Philippa Barr Barbara Maggs Kathryn Riisfeldt Pauline Webb Gae Larcombe Margaret Meakin Sue Gaunt Barbara Maggs Audrey Galloway Maureen Collins & Lorelle ONeill Gail Fitzhardinge Kay Anderson & Maureen Collins Margaret Meakin Audrey Galloway Carole Noritis Gae Larcombe Lynne Amos Jan Press Kate Thomas

53 MANLY GOLF CLUB LIMITED

MEMBERSHIP DETAILS AS AT 30TH SEPTEMBER 2012

Membership 7-Day Playing Provisional 7-Day Playing Senior 7-Day Playing Intermediate 7-Day Playing Junior 7-Day Playing (12-17) Country 7-Day Playing 5-Day Playing Provisional 5-Day Playing Senior 5-Day Playing Intermediate 5-Day Playing Junior 5-Day Playing (12-17) Country 5-Day Playing Special Senior Playing Bowling Absentee Non-Playing House Special Life Honorary Members Overseas Talented Junior 7-Day Talented Junior 5-Day TOTAL

MEN 2012 2011 471 469 0 0 24 27 41 40 23 19 27 26 95 97 0 0 7 7 9 3 2 4 10 8 41 47 6 8 53 48 131 131 21 28 0 1 1 2 2 2 0 0 4 7 0 0 968 974

WOMEN 2012 2011 3 4 0 0 0 0 0 0 0 0 4 5 258 260 0 0 9 9 4 4 2 4 11 11 17 20 3 3 3 4 43 43 59 68 0 0 1 1 0 0 0 0 0 0 3 4 420 440

TOTAL 2012 2011 474 473 0 0 24 27 41 40 23 19 31 31 353 357 0 0 16 16 13 7 4 8 21 19 58 67 9 11 56 52 174 174 80 96 0 1 2 3 2 2 0 0 4 7 3 4 1388 1414

54 MANLY GOLF CLUB LIMITED

COURSE REDEVELOPMENT SUMMARY

INTRODUCTION Following 11 years of investigations, planning and liaison with members, council, government departments, community, consultants and contractors the Club has invested in establishing a new challenging layout that will attract and retain members and corporate clients for many years into the future. The course can now effectively drain after flooding and be efficiently maintained to a much higher standard at lower costs than the previous course.

WHY WE NEEDED TO CARRY OUT A COMPLETE REBUILD While drainage was the primary driver behind the need to redevelop the course, there were other issues that needed to be addressed. Insufficient water source or storage. An irrigation system over 30 years old which only covered 50% of fairways, pipes 50-80% blocked with iron oxide and in need of an upgrade. Old push up greens, many infested with couch, tees inadequately sized and built on building rubble. Design not marketable to compete with other clubs, attract new members and corporate clients. Excessive tree numbers impacting golf corridors, light penetration and turf quality in high-wear areas. Safety issues with a major road on holes 4 and 10. Congestion/lack of area, internal safety and need to access the 3,000 square metres of unused land west of Burnt Bridge Creek. The Club was spending as much as similar private clubs on maintenance whilst only occasionally being able to achieve similar presentation standards. Virtually no all-weather cart paths. In late 1998 the Board agreed to begin the investigations required to develop a Master Plan. In April 2000, it was agreed to seek EOIs from four course architects, namely Newton, Grant & Spencer, Graham Papworth, Thomson Wolveridge & Perrett (TWP) and Ross Watson. In June 2000 the then Board appointed TWP as course architects. From then on until August 2006 much of the effort went into searching for a water supply. WATER Coupled with the issues with the golf course that led to the Master Plan decision was the need to shore up an alternative or secondary water supply. The Club has long relied on bore water from a small aquifer that provides around 450kl per day. This source is gradually increasing in salinity and is inadequate throughout the peak of the summer. Creating a large storage on site was prohibitive due to area involved, flooding and groundwater. From 1998 through to 2011 the Club finalised the case to Members as to why we needed a new golf course and pursued the following alternatives to augment the bore supply:A pipeline to Manly Dam (a 30 hectare water body previously used to supply potable water to the local area). We could not gain the necessary support from Manly and Warringah Councils. Increased bores and bore water (testing exhausted). Treated effluent returned from North Head sewage treatment works (a $1.6 million grant to run a pipeline to the course was returned after Sydney Water infrastructure failed). Sewer mining on site (insufficient flows). Harvesting water from Burnt Bridge Creek via a weir (advised by DWE and Council against this option). Harvesting water from Manly Lagoon via reverse osmosis (treatment expensive, not environmentally supported, issues with waste stream). Aquifer recharge (after initially being told by Manly Councils Scientific Advisory Panel to pursue Aquifer recharge instead of Manly Dam, Council would not approve our DA with an Aquifer recharge pond without

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extensive further research into the fate of stormwater pollutants). Harvesting storm water from Cemetery Creek via a small storage pond. (The Club successfully sought a Grant from the Department of Sustainability, Environment, Water, Population & Communities. Australian Governments Water for the Future National Urban Water and Desalination Plan received December 2010). This pond should supply around 30-40 megalitres per annum. The stormwater will require chlorination prior to use due to very high faecal coli form levels. WHAT WE ENDED UP BUILDING What initially started as re-contouring, new tees, greens, bunkers, drainage and an irrigation system, eventually included 660 metres of new waterways, 7 bridges and a 50 metre boardwalk, dewatering, acid sulphate soils treatment, lined creeks and pond, 3.2 kms of cart paths and the meeting of many conditions imposed by the various government departments. In summary the development included: 18 holes, spare and 2 practice facilities. Conversion of 7.8 hectares of turf to native indigenous landscape. Establishment of 3 hectares of new Riparian zones. Planting of 250,000 native plants of 63 different species. Creation of 7,000 square metres or 660 linear metres of waterways/aquatic habitat Re-routing of Burnt Bridge Creek and the building of a weir. Planting of species from endangered Swamp Oak floodplain forest community. Planting of forage species for threatened Osprey, Gang Gang Cockatoo, Glossy Black Cockatoo and Grey Headed Flying Fox. Treatment, validation and re-use of 6,000 cubic metres of Potential Acid Sulphate Soils (PASS). Cut and fill of 60,000 cubic metres, many of which was double and triple handled. Construction of 7 new bridges and a 50 metre boardwalk. Installation of 3.2 kms of concrete cart paths. Installation of a new electricity sub-station. Installation of two 500kl tanks, pump station and irrigation system. Construction of a lined 5 megalitre stormwater harvesting pond, pump transfer station, bore water treatment and stormwater treatment systems. Installation of an Ecosol 4900 Gross Pollutant Trap (GPT). Construction of a new 132 space car park. Dealing with four floods including a 1 in 20 year event. Conversion from Kikuyu to Windsor Green Couch. Due to the sensitive and high profile nature of the site, gaining approvals for such a major change of landscape required considerable investigation and negotiation, and as it turned out greater expenditure than originally envisaged. Once the DA was approved, design and specifications from most consultants needed further work to comply with conditions and achieve sufficient detail to supply construction information and carry out the tender process. The following were reviewed: Course design detail including, degree of slopes, green and tee sizes, drainage plan, paths, landscape. Golf course construction specification. The detailed written description of how everything should be built, i.e. greens profile, bunker drainage/ matting etc, thickness of mulch, use of site soils etc. Engineering detail, drawings and wording. Drainage networks to achieve removing all surface water, flat spots in design surface. Thickness and detail in paths. Bridge construction vs. cost. Compaction required for sub-base etc.

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After receiving the DA with its 101 conditions, the Club and its consultants had to display how these conditions would be met prior to and during the development to receive a Construction Certificate (CC). One of the major issues was flooding, with council employing their own consultants to review the flood modeling carried out for the project. Once the council and the private certifier had sufficient evidence and assurance that the Club would meet the conditions of the DA, a CC was provided enabling the commencement of construction. CONTROLLED ACTIVITY APPROVAL (CAA) Due to the fact that works were within 40 metres of a waterway, a General Terms of Approval was required from the DWE (now DECCW) as part of the initial Development Application. This, like the DA, sets out initial conditions. These requirements must be met to achieve a Controlled Activity Approval (CAA) from the DECCW to commence work. Requirements include; a Vegetation Management Plan (VMP), agreed Riparian corridors, details on any structures in or adjacent to waterways, species used, minimum planting numbers and density, maintenance programs and a bond to the cost of the establishment of the Riparian zones ($350,000). The CAA was received in October 2009. STAGES OF RE-DEVELOPMENT PLANNING THROUGH TO CONSTRUCTION Harness Club and member support for change and Master Plan. Searching for Water. Working through the Concepts to the final layout to present to members. Funding proposal and Master Plan approval. Preparing the Development Application (DA). Modifying and elaborating on the DA to achieve approval. Detailed design and documentation to meet DA conditions and achieve Construction Certificate (CC). Tender Process. Construction. Agronomics and Grow-in. Finance. HARNESS CLUB SUPPORT As all members know the Club is in a great location demographically. The recently renovated heritage listed Clubhouse provides a wonderful and historic home for members and guests. Providing a high quality golf course was necessary to secure future income. The site, like many golf courses, was built on land not suitable for anything else and so to bring the course up to modern day standards there were many difficult issues to overcome. Addressing these issues and overcoming the layout shortfalls would prove to be a major challenge. Site Background Manly Golf Club is situated on the Northern Beaches of Sydney. The course lies 500 metres west of Queenscliff Beach adjacent to Manly Lagoon. An 18 square kilometre catchment drains into Manly Lagoon which has its opening at Queenscliff Beach. A large percentage of the golf course lies on the flood plain and is submerged to some extent most years at least once. The Club relies very heavily on the low flow pipes that connect the lagoon to the ocean and the emergency opening of the beach during flood events. The low lying and flat nature of the site has led to many efforts to improve drainage since the land was purchased from 87 separate owners between 1906 - 09. Early efforts to improve drainage included digging swales, hand drains and assisting with digging out the opening to the beach. Dredging of the lagoon to fill and raise some areas above the water table also took place. While there is no doubt these works improved drainage and recovery after flooding, the site was still extremely prone to damage. Over the last 14 years the course has been closed to some extent for 258 days. While drainage was the primary driver behind the need to redevelop the course, there were other issues that needed to be addressed. FROM CONCEPT TO MASTER PLAN The process from 1998 through to the start of construction went through the following steps:-

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Survey members to assess support for the redevelopment and value placed on aspects of site, course and possible design. Survey results were processed and used to support the ongoing push for redevelopment and develop the Manly Golf Club Design Brief. Survey topics were Layout and Design, Maintenance, Environment, Turf Quality, Construction and other factors. 350 members responded, with support from 88-95% for many of the questions regarding the need for redevelopment. Select a suitable course architect company. Committee visits were arranged at other Clubs to inspect and assess desirable qualities of architects. Develop comprehensive brief utilising Club expectations, course asset issues and limitations, member profile, future target clientele and member survey results to ensure design was suitable for Club and maintainable. The selected architects Thomson Wolveridge and Perrett (TWP) now Thomson and Perrett (TP) then carried out a site assessment. TWP identified site strengths and weaknesses to commence the concept planning process.

Some of the key limitations and problems identified by the Company were: Less than an ideal size area for 18 holes, Bowling Green and practice facilities. Proximity to busy roads. Inefficient use of available area. The South Links has 12 holes on 18 hectares; the North Links has 6 holes on 18 hectares. Flat low-lying nature of the site. Difficulty in achieving returning nines due to the two parcels of land. The poor flow of play on several holes with long green to tee walks and cross-overs. Safety concerns and disruptions on several holes due to close proximity to other holes. Excessive and inappropriate plantings. Dangerous and inefficient practice facilities.

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

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After 8 years of investigations, consultation and planning, Members met at an Extraordinary meeting in August 2006 to vote on the new Master Plan. 550 members filled both floors of the Club to voice their opinion on the course upgrade. 95% supported the Master Plan. Members also voted to lease the car park and sell 85 Balgowlah Road to enable funding for the course development. PREPARING THE DEVELOPMENT APPLICATION Development Consent Process The following steps needed to be followed when preparing and lodging the development application with Manly Council: Consideration of environmental planning instruments, policies, codes and guidelines relevant to the development; Preparation of a concept proposal; Attendance at a pre-DA meeting with Council to identify areas of non-compliance; Consultation with adjoining properties; Amendment of the proposal; Preparation of Statement of Environmental Effects (SEE), DA plans and technical reports; Completion of DA form and checklist; and Lodgement of DA and payment of fees. Following lodgement, a formal community consultation process was undertaken by Council as is mandatory for all development in an Open Space Zone in accordance with the Manly LEP. Consultation takes place through a letter drop to adjoining and nearby properties, an advertisement in the Manly Daily newspaper, erection of a site notice and referral to the Ocean Beach, Ivanhoe Park and Balgowlah Precinct Committees. All members of the community have an opportunity to make written submissions during the public exhibition period. Submissions are considered and the proposal amended where necessary. An assessment report on the application by a Council Assessment Officer is then considered by either the Land Use Management (LUM) Committee, or the Development Control Unit (DCU) for determination in accordance with Section 79c of the EP & A Act, Manly LEP and relevant DCPs. Following determination, written notification is received by the applicant regarding Councils decision. In conclusion, review of the EP & A Act, EP & A Regulation, SEPP (Major Projects) and Manly LEP indicated that the redevelopment of the Manly Golf Course would fall under Part 4 (Development) of the EP & A Act. The proposed redevelopment was considered non-designated, integrated development and the Statement of Environmental Effects was prepared accordingly. Approvals required from State Government agencies include a permit from the Department of Water & Energy under Part 3A of the RFI Act, and a permit from NSW Fisheries under Part 7 of the FMA Act. The proposed redevelopment of Manly Golf Course was considered to be consistent with relevant Manly Council policies and plans. Stakeholders in Development Due to the sensitivity of the sites location, approvals and negotiations took some time. The Club held many meetings with government departments and resident groups to explain the proposed development, the reasons it was necessary and the benefits to the community. The first presentation was February 2002. Presentations were carried out at the Club with course inspections and at the various government offices. Government agencies involved were Manly and Warringah Councils, Department of Land and Water (now DECC water), Department of Primary Industries Fisheries (now NSW Industry and Investment Fisheries). Nongovernment groups consulted were the three local precinct committees.

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While the presentations and discussions with authorities started in 2002 formal applications did not commence until after the Master Plan was adopted by members in 2006. The following year detailed investigations to produce the Statement of Environmental Effects and Development Application took place. The DA was lodged in October 2007. Development Approval was received in December 2008. The Approval contained 101 conditions. Further investigations and consultant reports to adhere to the conditions and obtain a Construction Certificate took around 8 months with the Construction Certificate received in October 2009. Major Issues Major issues raised by the authoritiesFlooding impacts of development. Flood compartment, flood levels; Potential Acid Sulphate Soils; Tree Protection/removal; Stormwater quality; Contamination. Whether past filling with industrial or building waste products had taken place; Impact on Flora and Fauna; Community concerns; Erosion and Sediment control; Roads and Traffic management; Visual Impact; Noise; Filling or installing a culvert in a section of existing creek; Filling a portion of the Lagoon; Loss of aquatic habitat; Fish passage. Consultants To address the concerns raised and conditions of approval by both Council and the various departments the following consultants were required: Golf course architects and landscape design; Engineering civil, geotechnical, structural, flooding, stormwater, hydraulic, hydrology, electrical Terrestrial and aquatic ecologist; Contaminated site auditor (two required); Noise and visual; Acid Sulphate Soils.

Engineering Issues One of the key difficulties of the site was the need to re-contour to overcome stagnant surface water after the inevitable flooding. As the site is in a floodplain this had to be achieved without any loss of flood compartment or the importation of any fill. Ross Perrett from TP suggested creating waterways to produce the fill required to raise and contour the fairways to achieve surface runoff. Basically the lagoon was extended back into the course to create the extra 7000m2 of aquatic habitat. This obviously greatly increased the budget for the works but was the only option. Other engineering and approval issues dealt with were: A minimum of two for one increase in aquatic habitat was required by Fisheries, i.e. the area we proposed to fill to access the unused land had to be doubled elsewhere. To access the land for the 8th hole a section of Burnt Bridge Creek (BBC) had to be filled and the creek re-directed along the Clubs boundary. A seven to one ratio was eventually provided.

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Diverting flow from BBC with a weir into the new Estuarine Channel. Obtaining approval for the 50 metre boardwalk over Manly Lagoon to access our land for the 8th tees. Flood modelling to prove the proposed design would not negatively impact on flooding in a 5-year, 20year and 100-year flood event. This required several manipulations of the surface with one green dropped considerably and several fairway changes. Initially it was intended to keep the greens above the 1-in-20-year flood level, however, this could not be achieved. Early flood modelling showed an increase in flood level of less than 10mm. This was originally considered acceptable by the Flood Division of the Department of Land and Water as it was less than the accuracy of the model. Manly Council stipulated the model result be zero. Finally a result of less than 3mm was accepted in a 100-year flood. Evidence of improved downstream stormwater quality was necessary. MUSIC modelling (Model for Urban Stormwater Improvement Conceptualisation) is used to model nutrient loads from the catchment in various scenarios to prove an improvement from the new design

New Waterways Design-wise, the new waterways brought the possibility of natural hazards and visual features not originally considered. Whilst Manly GC was adjacent to Manly Lagoon, water hazards were never a key feature of the course. The course was a parkland course only consisting of trees and turf. The conversion to more natural vegetation was going to be a major shift in the style of course back to its early years. The extent of the landscape required to appease authorities was going to make the course much more difficult.

MODIFYING TO ACHIEVE APPROVAL Dialogue with Council staff throughout the assessment of the initial Development Application identified areas where changes had to be made, where more detail was required or what issues may need contesting. Contesting Conditions As with any Development Application you must have enough positive outcomes from the development to gain support for the project. This project presented considerable environmental risk and disruption which had to be outweighed by the benefits. Authorities will endeavour to achieve benefits for the community and environment as conditions of the development. Some can prove very difficult to meet. Those required by legislation cannot be avoided. Those desired by the Council but not the result of legislation may need to be contested. Two demands requests placed on our development that we rejected were :The development should lower flooding in the rest of the floodplain. If climate change causes flooding to increase the golf course development should try to reduce this for the rest of the flood plain. These conditions could not be enforced by legislation. The Development Application was approved in December 2008, a little over a year from when it was lodged. TENDER PROCESS North Links With the assistance of the engineer and the course architect a tender document was prepared. Tenders were called from golf course construction companies recommended by Thomson Perrett being: Grove Turf Construction Pty Limited; Flemming Golf; Turnpoint; and McMahons. At the close of tenders all but McMahons responded. The tenders for the North Links works were all in excess of $10,000,000. On review by the Clubs General Manager and Course Superintendent the quotes were found

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to have pricing duplication, include GST and there was clearly a lack of understanding of the earthmoving requirements. Following negotiations the prices tabled were: Grove: $8,101,696 Flemming Golf: $8,526,858 Turnpoint: $9,717,225 These numbers were still above affordability. During follow up meetings it became evident that the professional tender document prepared by Worley Parsons contained many conditions and risk factors not normally associated with the type of earth-moving work required for the project. The specifications for bridges, concrete paths, landscaping, etc. were clearly in excess of those normally associated with golf course construction. Following many meetings with contractors and sub-contractors, a redesign of the methodology and many aspects, particularly cartage, we were able to reduce the price for the North Links works to $6.7 million. A fixed price contract was signed with the lowest bidder being Flemming Golf for $4,834,355 with direct and other costs outside the contract totaling $1,865,645. The major achievement was to leave the flood risk with the contractor. The construction of the North Links commenced in October 2009. Progress was delayed by some extended wet periods including flooding, particularly during the winter of 2010. Almost no work was carried out in July and August due to constant rain. Work commenced on Stage 2A in September 2010 to endeavour to have the Clubhouse surrounds completed prior to peak corporate season. The final areas of the North Links, being the east end of 2 and 3 and the 9th hole, were delayed until 2A was complete. During the construction of the North Links two 500kl water tanks were installed at the maintenance compound to increase storage. The tanks receive supply from the Clubs aquifer (450kl/day), Stormwater Pond and town water when required. Stage 2A Stage 2A was made up of the Clubhouse practice area, the 1st and 10th holes, 17th green and the practice range. A tender was prepared, however, with Flemming Golf on site we were unable to attract other bidders. Consequently a contract was signed with Flemming Golf for the works costing $1,267,584. To reduce costs the Club contracted directly for irrigation, landscaping and other direct costs outside the contract taking the total budget to $1,980,429. Stage 2A was completed by January 2011. The new 10 holes were opened on May 6 th 2011. Stage 2B Following a break in the works for seasonal reasons and approvals the process began again. Tenders were prepared and quotes sought. On this occasion three companies tendered with the lowest price coming from McMahons. Their price was 15% lower than Flemming Golf. We are of the view that Flemmings tender reflected the cost of the delays caused by abysmal weather conditions they suffered during the course of the Stage 1 works. The final seven holes 12 through 18 and Stormwater Harvesting Pond were built between August 2011 and July 2012. Again several months of delay resulted from a very wet January to July when we received 1200mm of rain. Burnt Bridge Creek overflowed 6 times causing damage to the holes under construction. The resulting delays necessitated using solid turf as opposed to stolons to grass holes, 12, 16 and portions of 13, 14, 15 and 17. This enabled the holes to be opened in July even after the many inundations and re-visiting damaged works. The Stormwater Harvesting Pond proved to be one of the most challenging aspects of the project due to the variable and heavy soils, well charged groundwater and frequent rainfall. The final lined pond holds just

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under 5 megalitres with approximately 3 megalitres available to harvest. The bottom section of the pond is not pumped out due to aesthetics and groundwater pressure on the pond liner. During a summer of average rainfall the pond should supply 30-40 megalitres to the Clubs irrigation requirements. This will be a saving of $70-$90k per annum compared to purchasing town water. This along with the 50 megalitres supplied by the Clubs aquifer will supply the majority of the course needs (80 -90% in average year). During periods of dry weather when the pond storage has been depleted the use of town water may be necessary. One of the benefits of the conversion to Couch from Kikuyu is the reduced irrigation requirements of approximately 10%. Couch can also tolerate long periods without rain or irrigation while still maintaining a good playing surface.

CONSTRUCTION Some of the interesting aspects of the construction were:The Weather In a few years time we will have forgotten the unseasonal conditions that we tolerated during the 2 years and 9 months of the construction project from October 2009 to July 2012. A few statistics tell the story of wet weather, generally winters when the course can tolerate it the least and cooler than normal summers when we needed growth in the new couch. The years 2010, 11 and 12 all had above average rainfall. In particular 2011 had 300mm above average and as we are well aware 2012 had almost reached its average by July. The statistic that probably sticks out the most is the number of months when we received over 200mm of rain. During the project this occurred on 8 occasions. Prior to October 2009 you need to go back 9 years to find 8 months that received over 200mm of rainfall. As far as delays to work are concerned as mentioned the worst time as we all know for Manly to receive rain is through the cooler months. Unfortunately the May to July period in all three years 2010-2012 were wet. We received over 400mm in this period each year (2010 500mm, 2011 464mm, 2012 400mm). Once again to search the records for the previous three May-July periods receiving over 400mm you need to go back 10 years (2001, 2003, and 2007). Obviously with the rain comes the flooding as Manly Lagoon or Burnt Bridge Creek overflows. This occurred on 11 occasions 6 of which were this year. While during any construction project you expect delays due to wet weather, we were always more vulnerable in our very low lying positions at the bottom of the catchment. With the unseasonal wet period I estimate we conservatively lost 25-30 weeks due to wet weather delays over the project. Staging Prior to the major golf course reconstruction a new car park was built on the old 1st fairway and a new shortened 1st par 3 (now 11th) was built to the Master Plan design in early 2008. The major works began in October 2009 on the North lLnks. After receiving a DA for the whole course the Club sought and received the Construction Certificate for the North Links. This allowed the 12 holes on the South Links to be played. Players played 6 of the 12 holes twice to achieve 18. During construction of the North Links a Construction Certificate was sought and received for the connecting holes the new 1st and 10th and practice facilities. This reduced the South Links to 9 holes which was played twice. In May 2011 the new holes 1-10 were opened with the members enjoying a full 18 holes for 2 months before the last 7 holes (12-18) were closed for reconstruction Contaminated Fill On the unused section of land west of Burnt Bridge Creek there had been filling at some stage which raised the area up to 4 metres. Testing of this material was required to determine the type and quantity of material. The estimated 6-7,000m3 of fill was predominantly sandstone and soil but some demolition material was found

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which included various types of building rubble some of which contained traces of heavy metals and bound asbestos. Fortunately the asbestos was in the form of ACM fibre cement and not asbestos as respirable fibres. While heavy metals were found, only one sample exceeded the nominated parks/open space assessment criteria. After the report on the fill was audited by an EPA accredited Contaminated Site Auditor, it was determined that the material could be buried above the water table if covered with 500mm of soil. The Auditors report then had to be audited by another EPA accredited auditor to satisfy Council. Disposal off-site was estimated at $1 million. Fortunately for the Club the material could be used under the 8th fairway as specified to overcome the extensive disposal costs. Dewatering Across the site all excavations deeper than a metre required dewatering. Spear (slotted PVC) point dewatering was installed around all waterways on the North Links to suck the groundwater out of the sand. These spears are positioned every few metres. This adds considerable expense to the project. Dewatering on the South Links for the Stormwater Harvesting Pond proved far more difficult. Due to the heavier soil, spears could not be used with intercepting the groundwater around the pond almost impossible. Large vertical slotted pipes surrounded with gravel were used in and around the pond to draw down the water table with pumps. Complete drying of the base of the pond was not achieved. Potential Acid Sulphate Soils (PASS) Acid sulphate soils are naturally occurring soils, sediments or organic substrates (e.g. peat) that are formed under waterlogged conditions. These soils contain iron sulfide minerals (predominantly as the mineral pyrite) or their oxidation products. In an undisturbed state, below the water table, acid sulphate soils are benign. However, if the soils are drained, excavated or exposed to air by a lowering of the water table, the sulfides react with oxygen to form sulfuric acid when re-wet. Release of this sulphuric acid from the soil can in turn release iron, aluminium, and other heavy metals within the soil. Once mobilised in this way, the acid and metals can create a variety of adverse impacts: killing vegetation, seeping into and acidifying groundwater and water bodies, killing fish and other aquatic organisms, and degrading concrete and steel structures to the point of failure. Potential Acid Sulphate Soils are those that have potential to become Acid Sulphate but have not yet been oxidised (exposed to oxygen). All areas up to 5 metres above sea level around coastal areas can have PASS. The majority of Manly golf course sits between 1 and 5 metres above sea level. Geotechnical investigations through drilling identified PASS across both paddocks. These soils varied from sands, silty sands, clays, and peat. Identifying and isolating these soils by visual ID or using survey level was necessary during construction so they could be bunded and neutralised with lime. The initial Acid Sulphate Soils Management plan developed by Worley Parsons (WP) for the DA was then used to produce a Site Acid Sulphate Soils Management Plan which was developed by Sydney Environmental and Soils Laboratory (SESL). The initial WP plan required every cubic metre of soil moved on the site to be quarantined and limed. The site plan identified that the top soils, while slightly acid, were not PASS and did not require treatment. PASS when excavated must be stored in a bunded area. Large bays for this were built by pushing up the topsoil into walls and removing any good soils down to the existing PASS layer. The walls must be at a level to prevent flood ingress. The base of the treatment area is limed. The PASS is then spread in the bunded area in 200300mm layers, treated with lime, hoed or mixed, then tested to validate. SESL sampled the treated PASS and determined if further lime was required. All treated PASS was kept at least 300mm below the finished surface. Areas of PASS left in situ but exposed to air during the excavation where also limed such as the base of creeks, and the pond before lining. Bridge Construction The 7 bridges and boardwalk were supported on piles due to the inability of the alluvial and mixed soils to support the weight if footings were used. Piling through the lagoon for the boardwalk proved quite difficult.

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

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The pond design was quite interesting due to the ground water limitations. As the pond sits in water charged ground, the liner would lift if the pond was pumped below the surrounding groundwater. This may cause the liner to fracture. To ensure this does not happen two methods of insurance were employed. One was to install sensors to stop the pump when the pond level reaches the level of the surrounding groundwater. This is done with a sensor in the wet well and nearby piezometer. The other method was required if the sensor failed to cut out the pump or if the pond needs to be emptied. A drainage layer (Curtis Barrier SDV 2300) was installed under the liner to carry any hydrostatic water to a valve arrangement in the base of the pond. When the pressure from under the liner exceeds that in the pond around the valve the valve releases the pressure under the liner. To enable the groundwater under the liner to be lowered below these valves a camlock fitting was included in the valve arrangement to allow a suction pump to be attached. This should completely remove up lift pressure on the liner to enable repairs and cleaning. This pressure would be removed before the pond is fully emptied. As the liner extends up over the bank of the pond and is visible from all angles a method of covering or disguising the top section of the liner was sought out. A product supplied by Geofabrics Australia called Geoweb is suspended from a trench in the top of the bank and supports the framework to hold soil on the bank on top of the liner. As no anchors or supports can go through the liner the hanging garden is supported by tendons anchored into the trench on the top of the pond banks. The plastic cell framework opens out to hold soil with the tendons and clips running through the cells. The cells are backfilled with soil, covered with jute and planted out with groundcovers. This provides a vegetated edge down to the high water mark. Unfortunately below this level which is exposed during summer pumping the liner will be visible.

AGRONOMICS AND GROW-IN New Grasses Trials with new Bents commenced in 2000 and Couch in 2007. A chipping green was built with a selection of Bents to assess their performance. A1 was chosen for its resistance to Poa infection. Convincing Members the conversion from Kikuyu to Couch was desired and could be successful some time. In January 2007 half the 17th fairway and surrounds where converted to commence this process. Windsor green was chosen. Part of the selling of the new course was that these grasses are more efficient to maintain with the Couch performing better in lower irrigation situations then the Kikuyu. The Kikuyu was also experiencing considerable summer disease problems. At the time Primo management of Kikuyu was a much more costly exercise.

TOTAL COST OF THE COURSE RECONSTRUCTION The actual incurred costs over the original estimates were a combination of approval condition driven costs (e.g. sourcing the fill required to raise the fairways by deepening the creeks, contaminated fill, dewatering, potential acid sulphate soils, new power supply and landscaping (i.e. the riparian zones) and design enhancements such as additional cart paths, wider waterways and subsequent requirement for bridges and the board walk.

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MANLY GOLF CLUB - COURSE REDEVELOPMENT SUMMARY STAGE ORIGINAL BUDGET APPROVED ADDITIONS TOTAL APPROVED ACTUAL COST TO 30 SEPTEMBER 2012 VARIANCE TO TOTAL APPROVED % VARIANCE TO TOTAL APPROVED % VARIANCE TO ORIGINAL BUDGET 1 2A 2B TOTAL $6,700,000 $1,980,429 $4,813,769 $13,494,198 $241,451 $51,596 $628,007 $921,054 $6,941,451 $2,032,026 $5,441,776 $14,415,252 $6,761,882 $2,017,919 $4,903,076 $13,682,877 $179,569 $14,107 $538,700 $732,376 -2.6 -0.7 -9.9 -5.1 0.9 1.9 1.9 1.4

ACTUAL COST TO 30 SEPTEMBER 2012 STAGE Development costs pre 01/09/06 $157,619 Consultants Costs to 30/06/07 $280,612 Car park $564,743 Gardens $27,740 1st Hole $316, 353 Consultant Costs - DA & Construction cert. $559,374 Course and Civil Design North Links $148,739 SUB TOTAL PRE-CONSTRUCTION $2,055,180 1 $6,761,882 2A $2,017,919 2B $4,903,076 SUB TOTAL CONSTRUCTION $13,682,877 TOTAL CONSTRUCTION $15,738,057 Less Grant received $-2,091,700 TOTAL EXPENDITURE $13,646,357

FROM PRELIMINARY ESTIMATES TO ACTUAL COSTS The original estimate of August 2006 of the cost of the course reconstruction (including the Car Park, but not (now) Hole 11) was $6.84 million. This was based on a two dimensional routing plan and used QS type rates and assumptions as to quantities of earth to be moved, green sizes etc. It did not include costs incurred in consultants fees etc prior to that date. The cost estimate was revised in September 2007 before any detailed design work was done to $8.9 million. This, while still largely comprised of QS style estimates, did include actual Car Park costs.

MANLY GOLF COURSE REDEVELOPMENT COST INCREASE BY CATEGORY COMPARED TO PRE-DETAIL DESIGN AND APPROVAL BUDGET The reasons for cost increases from the early budgets to final expenditure are many but generally can be attributed to a few main influences. Foremost was the impact of the conditions of approval and the evolution of detailed designs not available in 2007. The 101 conditions of approval required increased consultant investigations and environmental, construction and landscape requirements. Detailed engineering design followed taking into account approval conditions. Tenders on the detailed construction designs prior to each stage were well above the 2007 estimates. Inflation over the 3-5 years from estimate to construction also contributed to the cost increases. The following is the increase in the general categories of the project from the

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

BROAD CATEGORIES OF PROJECT PRELIMINARIES. Little detail was available in the 2007 estimate to account for the following or the approval impacts on these items. Erosion and flooding control plans and measures, design changes caused by Council requirements, various site management plans, insurances, site setup, etc LANDSCAPING. Significant increase in the design, area and density due to approval conditions. DRAINAGE. Estimate prior to detailed design were not adequate. IRRIGATION. Increased requirements due to conditions of part circle irrigation around waterways. Inadequate estimate due to lack of detailed design and increase in material costs. EARTHWORKS. Factors that arose during construction due to weather and soil type. TURF. Increased use of solid turf over stolons to secure erosion prone surfaces and reduce establishment time. BOARDWALK AND BRIDGES. Requirements for piling and detailed design not accounted for in estimates. PATHS. Area, cost per metre and site access difficulties not accounted for in 07 estimate CREEK AMOURING. Treatment to protect creeks from erosion. THE FOLLOWING ITEMS WERE NOT INCLUDED IN THE 2007 ESTIMATE POND AND GROSS POLLUTANT TRAP. WATER TANKS ELECTRICITY SUBSTATION PROJECT MANAGEMENT TOTAL GENERAL CATEGORY COST IN EXCESS OF 2007 ESTIMATE

$900,000 $250,000 $300,000

$900,000 $250,000 $250,000 $300,000 $800,000 $100,000

$864,000 $192,000 $130,000 $100,000 $5,086,000

In summary the actual incurred costs over the original estimates were a combination of approval condition driven costs (e.g. contaminated fill, dewatering, potential acid sulphate soils, new power supply and landscaping (i.e. the riparian zones) and design enhancements such as additional cart paths, wider waterways and subsequent requirement for bridges and the board walk. Finally, as a Board, we were determined not to cut corners nor always take the cheapest option; we believed we had one chance to get this right and were determined to do so.

FINANCING THE PROJECT Old Car Park Balgowlah Road It was obvious from the outset that we would need to release some of the value in this asset to go towards the course reconstruction. Our initial effort was to seek a DA for an underground car park on this site for the Club (about 150 car spaces) and a home unit development above with 16 apartments. This was approved by Manly Council but subsequently challenged by two of the neighbours. This challenge ended up in Court after a lengthy delay, and the appeal was dismissed with costs awarded to the Club. The delay, combined with some changed market conditions, made the Club rethink this project, as the construction and development risk was assessed to have increased.

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At this time one of our members, Peter Rose, suggested we consider a long-term lease of the land to Universal Childcare, a childcare centre developer/operator. After some lengthy negotiations a deal was agreed and the Club received $4million for the 50-year site lease. This was approximately 80% of what the land was worth as a home unit site, so the Board felt this would be a much more acceptable result for our members with the Club retaining the land. This happened pre-GFC. It is almost certain that post-GFC we could not have secured such an advantageous (to the Club) outcome. 85 Balgowlah Road The Club owned a house next to the old car park, 85 Balgowlah Road, and this was sold for $830,000 to release funds for the course redevelopment.

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

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MANLY GOLF CLUB COURSE REDEVELOPMENT SUMMARY 2006-2013 EXPENDITURE STAGE Pre construction Stage 1 North Links Stage 2A South Links Stage 2B South Links TOTAL CONSTRUCTION EXPENDITURE SOURCES OF FUNDING Lease 87-95 Balgowlah Rd Fairlight Sale 85 Balgowlah Rd Fairlight Sale Land 15 & 17 Suwarrow St Estimated Sale Houses 28 and 32-34 Balgowlah Rd Ten Year memberships Construction levies 2009/10-20012/13 Loan Reduction Levy 2012/13 Grant Received TOTAL SOURCES OF FUNDING CONSTRUCTION EXPENDITURE SHORTFALL TRADING SHORTFALL ESTIMATED DEBT LOANS
CBA loan pre construction CBA Bank Bill Facility Pastlink Properties Ltd CBA Loan 30 Balgowlah Rd Total Loans LESS LOANS REPAID CBA loan pre construction Pastlink Properties Ltd CBA Loan 30 Balgowlah Rd Total Loans Repaid ESTIMATED DEBT 1.31 5.00 1.80 0.90 9.01 7 8 9 4

$M 2.05 6.76 2.02 4.90 15.73 4.00 0.84 1.74 1.98 0.73 1.21 0.26 2.09 12.85 -2.88 -2.12 -5.00

NOTES 1

2 3 4 5 6 6

10 11

-1.31 -1.80 -0.90 -4.01 5.00

7 9 4 11

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

280,000 407,000 260,000 264,000 1,211,000

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

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

K J W Munro President 5 October 2012