Further to yesterday’s informal (Pre-AGM) meeting a few more questions were raised and answers provided. If answers weren’t fully given at the meeting they are attached below.
How often is the burglar alarm changed? The alarm is routinely changed and as luck would have it, had been changed that day.
A discussion took place regarding Fire evacuation procedures, muster points, training, alarm fire extinguisher testing, and emergency lighting.
Those who had been in the clubhouse earlier confirmed they had heard the fire alarm when IMMS were in doing their routine test.
The muster point was confirmed as the car park.
The fire extinguishers are checked weekly by the Bar Manager and whenever seals have been tampered with or any extinguisher is not full remedial action is taken.
We use Forth Fire Protection to provide these support services.
A question was asked in relation to the training given to bar staff as we have non members in for many functions.
The Bar Manager is usually in attendance at functions but the point was well made and Bar staff training will be implemented during February.
Another question related to the accounts and the ‘payment to caterer’.
This figure, £28861 was £13,333 in the 2017 accounts.
Was this correct or was this a missed accrual in the 2017 accounts.
The error is that £6500 was paid in October to the caterer in relation to food for September 2017 functions, and this should’ve been in the 2017 accounts.
This means that the accounts in 2017 were overstated by £6500 and the consequence is that this year’s accounts are understated.
In terms of the P & L, the profit in 2017 should’ve been £67,213, not £73,713 and the loss for this year should’ve been £37,337 not £43,838.
£50 Clubhouse redevelopment levy.
Is this figure variable or is it fixed and why does it not multply by £50.
It was explained that the clubhouse levy collected this year was £31752 compared to £29500 in 2017.
If a member defaults having paid by Premium Credit then it can be apportioned to each category skewing the arithmetic calculation of lockers, trolley shed and levy.
In the accounts for 2012 and 2011 the figures for clubhouse levy were £26428 & £30055. The loan repayments were £37133 in 2012.
£38809 was our repayment back in 2009 and we raised £33500 via the levy.
This highlights how the shortfall has been made up from our reserves but our reserves are dwindling.
On the plus side of this calculation is that we had £820190 of the loan outstanding in 2006.
The figure at the end of last year was £418,583 and by September this year we will only have £379,664 left.
The question was asked again about what level the levy should be at to ensure it matches the loan.
The levy rates would depend on the numbers paying it and the prevailing rate of interest, but it is roughly £60 and has been as high as £64.
We have been exceptionally fortunate that the negotiated rates were 1.25% above base rate and LIBOR.
As most members will know we have had an unprecedented low level of interest rates in the last 14 years.
The Scottish Golf levy is now being charge to members but previously this had been drawn down from reserves.
Questions were asked about loyalty schemes and what was appropriate going forward.
Other clubs had either abolished them or moved them to different age brackets.
The main loyalty schemes discussed were over 65/ over 75 and life membership after 50 years.
questions were raised about how we balance loyalty schemes and commercial Under -31 youth rates.
It was agreed celebrating loyalty was a good idea but perhaps a reduction on that anniversary milestone might be more appropriate than a permanently discounted rate.
The U-31 pathway to Twilight membership was also discussed as a way of keeping more of the younger members in the club.
A question was asked about both the caterer and the secretary and whether these posts were being filled and if so would they be advertised.
Additionally it was raised that £51,000 had been spent on admin salaries and did we need to.
The evaluation of the roles performed in the office has highlighted that with Council members and the Financial Controller taking on more responsibility.
We believe as members and Council we need a reduced requirement going forward.
Many areas of the office work have been refined but there is still ongoing work in streamlining and we expect at least to appoint a part time person to assist in due course.
Scottish Golf have been approached about abolishing vouchers and paying cash for prize money.
Voucher processing are one of those small but expensive wastes of time.
Preparation, reconciliation, postage, receipt, deleting, payment and final despatch.
Competition entries are often processed in the office.
Ideally these will be reduced if more people enter online and credit the bank account direct.
The office hours will continue to be more targeted towards member services, processing new members as well as issuing renewals and collecting subscriptions.
With regard to the caterer, we are in the process of setting up a catering committee and invites had been sent out to arrange suitable time.
Any member with suitable experience is welcome to join.
The replacement of the caterer may be a franchise or we may elect to employ a chef.
We will need to clarify the position with the Environmental Health Organisation.
This will be decided once the operating service levels are agreed.
We aim to have an interim solution with a catering company supplying sandwiches.
The winter opening hours were discussed as bar and restaurant turnover was low in January – March 2018.
“Was it worth opening up the bar and restaurant?”
Members were advised earlier our turnover had improved from £32k to £38k during the first quarter.
As a business we tied our subscription rises to the minimum wage in 2017.
This year the minimum wage rise was 38p per hour, which all members would pay.
For a 4 hour round that was £1.52 and for a 3 hour round £1.14.
Effectively that equates to a rise of £34 per member.
Faster members tend to squeeze more games in apparently.
However, that’s not how we calculate our membership subscriptions but its an interesting analogy.
With the minimum wage rising to £8.21 our cleaning costs now exceed £40 a day
That’s £20 for each member per annum.
These costs bring us up to date but decisions on opening hours persist.
Financially it wasn’t worth opening Monday-Tuesday or Thursday for bar staff or the caterer.
Wednesday and Friday made a contribution to the bar staffing costs.
Saturday and Sunday usually covered the bar and catering costs.
From April the bar and catering is usually profitable covering the costs of the staff and the overheads of the building.
The overheads being the cleaning, heating and lighting.
There will be more comments and answers between now and the AGM but thank you for reading.