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The Westmounter
by the numbers:
six-month
financial update
JIM HARPER, TREASURER AND DAVID WHITE, CONTROLLER
We are pleased to report on the Club’s six-month
financial results and our financial forecast for the rest
of year. Included here are the unaudited Balance Sheet
and Statement of Revenue and Expenses as of June
30, 2020 with budget and prior year comparisons. The
Audit & Finance Committee has been hard at work
assisting Club Management to navigate through these
challenging times. While COVID-19 has significantly
impacted our operations and our results, thankfully the
Club was in a strong financial position to weather the
storm.
Westmount had no choice but to follow the
government emergency mandate and shutdown all
Club operations effective March 15, as everyone’s
health and safety was the primary concern. With no
idea how long the shut down would last—and not
knowing the full extent of government wage subsidy
funding that would later become available—we
developed three separate financial forecasts to plan
for the various scenarios we might face. With these
projections, Westmount’s Board of Directors decided to
credit all member accounts 50 percent of the monthly
fee installment for the months of March and April. In
total, the credits amounted to 1/12th of our annual fee
revenue, with a financial impact of just over $400,000.
The Board also felt the Club needed to look after Team
Westmount, as they continually look after our members,
and made the decision to keep our entire staff on
payroll for a three-week period. When the emergency
order was extended into April and government support
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June 30 Westmount Golf & Country Club Limited For the 6 months ended June 30 Statement of Revenue and Expenses (Unaudited)
Westmount Golf & Country Club Limited
Balance Sheet (Unaudited)
2020
Budget
2019
2020
2019
Assets Revenue from operations 1,788,450 1,422,079 1,787,209
Current $ 6,682,349 $ 5,592,834 Food & Beverage 1,399,100 583,221 1,282,666
Membership Fees
Guest Fees
130,650
Cash & Short-term investments
139,500
29,267
Locker & Cart Rentals
1,025,987
1,094,185
Accounts receivable
83,629
102,464
100,450
85,844
126,429
42,804
Inventories
107,905
Prepaid expenses 8,015,099 6,768,081 Other Revenues 84,450 0 354,675 137,420 0
Special Events
56,900
34,842
41,354
112,136
Government Subsidy Funding
Tangible capital assets $ 11,832,721 $ 11,282,604 Expenses 3,560,000 2,550,517 3,535,103
3,817,622
4,514,523
996,621
1,163,450
Clubhouse, administration and activities
1,103,101
Food & Beverage
1,391,444
Total Assets
897,039
1,446,800
Golf, maintenance and pro shop
56,900
Special Events 895,350 776,359 841,386
34,842
137,420
3,562,500 2,704,861 3,473,351
Excess of operating revenue over expenses (2,500) (154,344) 61,752
Liabilities and Shareholders' Equity
Current Revenue (expenes) from capital
Accounts payable and accrued liabilities $ 809,978 $ 1,025,557 Member capital contributions 400,000 400,000 350,000
Deferred revenue and unexpended funds 1,115,574 1,094,622 Gain (Loss) on disposal of equipment 0 0 153,620
48,900
40,732
58,095
for individuals was established, we did end up placing 1,925,552 2,120,179 Investment income (24,450) (20,250) (29,360)
Income taxes
56 of our staff on temporary layoff, which was about Shareholders' Equity 113,600 111,700 424,450 420,482 532,355
Share capital
Entrance & Initiation Fees 283,200 276,233 314,476
two thirds of our active work force at that point in the Net Assets Major capital improvement fund contributions 277,100 274,460 128,000
Net assets invested in tangible capital assets 3,817,622 4,514,523 Other Capital Contributions 0 0 102,325
season. Of those that remained on active payroll, many Major capital improvement fund 3,266,856 2,297,000 560,300 550,693 544,801
Internally restricted for capital purposes 2,544,582 2,164,538
74,664
164,509
were reassigned to other departments where the work Unrestricted 9,793,569 9,050,725 Amortization (662,500) (662,500) (625,000)
was a deemed necessity such as golf course property 9,907,169 9,162,425 Excess of capital revenue over expenses 322,250 308,675 452,156
maintenance. Their efforts were significant in prepping Total Liabilities and Shareholders' Equity $ 11,832,721 $ 11,282,604 Combined excess of revenue over expenses 319,750 154,331 513,909
the golf course for its eventual opening. We are
pleased to report that all staff on layoff were eventually the COVID-19 space restrictions have been the main Canada Emergency Wage Subsidy (CEWS) of $354,000
recalled. challenge; our banquet and catering business has up until then.
been virtually non-existent throughout the spring and
Following the Ontario government announcement July results have been reported showing an operating
of Phase 1 of the recovery plan, we opened the golf summer. F&B revenues are down almost $1.1 million deficit of $52,000 before the CEWS claim, compared
course on May 16. This was likely the latest opening from budget as of August 31. to a budget surplus of $73,000 and prior-year surplus
date in Westmount’s history, but remember we only Member participation in Tennis has also spiked, with of $99,000. The CEWS claim for this period has been
had three or four decent weather days up until that the number of member visits up 60 percent over the calculated at $229,000, bringing the operating results
time, including snow the entire previous Mother’s Day prior year. We are now planning for the upcoming to a small year-to-date surplus of $23,000.
weekend. Upon opening, the condition of the golf curling season and we expect much higher member
course was spectacular and demand for play was high. participation due to continued COVID-19 travel August results are not available at the time of writing
As of August 31, overall rounds played are almost 9 restrictions. this report, however, we are also forecasting a minor
percent higher than the prior year at that point. Year to monthly deficit before any additional CEWS funding.
date cart rentals are right on budget, however we are The shutdown of operations and reduced service and With the ever-changing rules under the CEWS program,
down almost 50 percent in guest fee revenue, so net staffing levels resulted in some operational savings, we expect to receive continued government support for
golf revenues are down $163,000 from budget as of however, we also incurred additional expenses in some the rest of 2020. The amounts, however, will decrease
August 31. areas such as the club entrance greeters and sanitation substantially because of the seasonal drop-off in our
team plus additional supplies for signage, cleaning payroll levels and the levelling off of the comparative
Early on during the pandemic shutdown, our Food & supplies, masks and PPE equipment.
Beverage (F&B) Team introduced the new pantry and reduction in revenue compared to the prior year.
take-out food service, which proved to be popular As of June 30, Club operations incurred a net deficit Our financial forecast for 2020 indicates club operations
and helpful to our members. F&B Service has been in of $154,000 compared to a budget deficit of $2,500 will be a near break-even at year end, while our capital
high demand since the patio reopening in mid-June and a net surplus of $61,000 reported last year on accounts have maintained full funding as budgeted.
and indoor dining reopening in mid-July, however June 30, 2019. The deficit would have been more
than $500,000, but we qualified for–and received–the
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