2015-05-05_PR Comm Packet - Laserfiche WebLink

Home

In this case, even after we remove the depreciation expense the expenditures still exceeded revenues during the past 4 years. Only 2010 shows a positive result. You'll notice however that there is no impact on the golf course's cash reserve or net assets. This is because depreciation expense is a non-cash expense — i.e. we're not actually moving any money. Bottom line is that golf course is running out of cash. Cash reserves have declined from $417,000 in 2010 to $249,000 by the end of 2014. 2015 and Ben The graph below presents the same 2010-2014 financial summary information accompanied by a projection of the next 3 fiscal years (2015-2017). The 2015 amount is based on the adopted budget. The remaining years are extrapolated from the 2015 budget with the assumption that revenues will increase by 4% and expenditures by only 3%. As shown here, on its current pace Cedarholm Golf Course will run out of money in 2017. Bear in mind that this only includes the impacts from projected operating expenses. Capital purchases will expedite the draw -down of the golf course's cash reserves even faster. Final Comments Hopefully the information presented above demonstrates that there are significant financial concerns at the golf course that need to be addressed very soon. Reducing the administrative charge might be part of the solution, but its effect will be negligible given the size of the current operating losses. We could also evaluate whether it is appropriate to allocate 1.75 FTE's to the golf course in addition to the temporary/seasonal employees. If we did a time -spent profile for golf course employees would we find that they collectively spend 3,640 hours annually managing or serving the golf course? If not, then the hours spent elsewhere should arguably be funded by that department/division. 5