Golf club on brink of insolvency
MARYBOROUGH Golf Club has been advised by the Queensland Government that it is on the brink of insolvency.
A letter from the Fair Trading office sent late last month said the club’s auditor had raised concerns in relation to the viability of the association, as its current liabilities exceeded current assets.
“The auditor has advised that there is significant uncertainty in relation to whether the association can continue as a going concern,” it said.
An emergency meeting of members was held last week, where recently elected club treasurer Marvin Reck filed a sobering report saying the club averaged a monthly shortfall of $15,000 to $20,000 per month.
In the report, which the Chronicle saw yesterday, he expressed concern about the direction, control of expenditure and day-to-day running of the club in the past two to three years.
Mr Reck said the club was in serious financial difficulty.
“Our cash flow situation has reached a critical point.”
He said drastic changes were required.
“Leading into Christmas it is expected that our cash flow will improve based on the functions pre-booked but this alone will not assist greatly in terms of longevity,” he said.
The government has asked the association to advise how it intended to extinguish its liabilities and what action it would take to continue operating.
Mr Reck said savings could be made in a number of areas but the club had to act quickly and already administration wages had been cut by $21,000.
His other suggestions included increasing bar prices, competition fees and social green fees; cutting bar wages, the cleaning roster and the driving range lease; and asking for funding assistance from juniors, vets and ladies.
Reducing the number of greenkeepers to three was also mentioned as a last resort.
Mr Reck said a combination of factors had led to the serious financial difficulty.
These included declining membership numbers and a fall in bar sales and poker machine profits.
He also pointed to increased loans and interest expenses after the purchase of a new clubhouse bar and clubhouse equipment, a renovated kitchen, updated poker machines and new golf course machinery. Rising repair and maintenance costs were also cited.
Club president Alan Gees declined to comment when contacted by the Chronicle yesterday.