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2018 Annual Report

2 Golf Canada

2018 Annual Report 3

PRESIDENTS1896 Hon. George A. Drummond, Royal Montreal GC, Dixie (QC)1897 John Hamilton, Quebec GC, Québec (QC)1898 Col. George A. Sweny, Toronto GC, Toronto (ON)1899 Lt.-Col. D.T. Irwin, Royal Ottawa GC, Aylmer (QC)1900 W.W. Watson, Royal Montreal GC, Dixie (QC)1901 Col. George A. Sweny, Toronto GC, Toronto (ON)1902 G.H. Balfour, Royal Montreal GC, Dixie (QC)1903 P.D. Crerar, Hamilton GC, Ancaster (ON)1904 Fayette Brown, Royal Montreal GC, Dixie (QC)1905 D.R. Wilkie, Toronto GC, Toronto (ON)1906 Hon. George Perley, Royal Ottawa GC, Aylmer (QC)1907 A.W. Austin, Lambton G&CC, Toronto (ON)1908 Dr. R.F. Ruttan, Royal Montreal GC, Dixie (QC)1909 Col. George A. Sweny, Toronto GC, Toronto (ON)1910 A.W. Austin, Lambton G&CC, Toronto (ON)1911 Hon. Justice G.F. Orde, Royal Ottawa GC, Aylmer (QC)1912 J.T. McCall, Royal Montreal GC, Dixie (QC)1913 A.H. Campbell, Toronto GC, Toronto (ON)1914 C.E. Read, Royal Ottawa GC, Aylmer (QC)1915–19 F.A. Rolph, Lambton G&CC, Toronto (ON)1920 D.R. Brown, Beaconsfield GC, Montreal (QC)1921 Paul Myler, Hamilton GC, Ancaster (ON)1922 R.C.H. Cassels, K.C., Toronto GC, Toronto (ON)1923 George S. Lyon, Lambton G&CC, Toronto (ON)1924 S.B. Gundy, Rosedale GC, Toronto (ON)1925 W.E. Matthews, Royal Ottawa GC, Aylmer (QC)1926 C.A. Bogert, Toronto GC, Toronto (ON)1927 W.W. Walker, Royal Montreal GC, Dixie (QC)1928 Major W.D. Wilson, Hamilton G&CC, Ancaster (ON)1929 C.E. Harvey, Elmhurst G&CC, Winnipeg (MB)1930–31 Alfred Collyer, Knowlton GC, Knowlton (QC)1932 W.H. Plant, Mississaugua G&CC, Mississauga (ON)1933 C.W. Jackson, St. Charles CC, Winnipeg (MB)1934 George H. Forster, Beaconsfield GC, Montreal (QC)1935 E.C. Gould, Brantford GC, Brantford (ON)1936 Robert Jacob, K.C., Elmhurst G&CC, Winnipeg (MB)1937 John I. Rankin, Beaconsfield GC, Montreal (QC)1938 Lt.-Col. Claude Brown, London Hunt & CC, London (ON)1939 J. Ernest Savard, Le Club Laval-sur-le-Lac, Laval (QC)

1940 Frank H. Harris, Mississaugua G&CC, Mississauga (ON)1941 W.S. Charlton, Point Grey GC, Vancouver (BC)1942 C.H. Sclater, Hamilton G&CC, Ancaster (ON)1943 M.R. Ferguson, Beaconsfield GC, Montreal (QC)1944 Dr. A.W. Matthews, Mayfair G&CC, Edmonton (AB)1945 H.R. Frost, K.C., Thornhill GC, Thornhill (ON)1946 J.A. Fuller, Royal Montreal GC, Dixie (QC)1947 George W. Lang, Westmount G&CC, Kitchener (ON)1948 F.N. Robertson, Riverside G&CC, Saint John (NB)1949 R.C. Holbrook, Royal Montreal GC, Dixie (QC)1950 C.W. Watson, St. George’s G&CC, Toronto (ON)1951 J. Gordon Bowers, Capilano G&CC, Vancouver (BC)1952 Colin Rankin, Beaconsfield GC, Montreal (QC)1953 A.J. Mylrea, Rosedale GC, Toronto (ON)1954 R.C. Borland, Calgary G&CC, Calgary (AB)1955 Dr. E.O. Turner, Fredericton GC, Fredericton (NB)1956 James P. Anglin, Q.C., Royal Montreal GC, Dixie (QC)1957 C. Ross Somerville, London Hunt & CC, London (ON)1958 John M. Blair, St. Charles CC, Winnipeg (MB)1959 Gordon B. Taylor, Kanawaki GC, Kahnawake (QC)1960 V.C. Holdroyd, Rosedale GC, Toronto (ON)1961 H.C. Lyle, Capilano G&CC, Vancouver (BC)1962 Dr. J.E. Leddy, Riverside CC, Saskatoon (SK)1963 Albert Rolland, Le Club Laval-sur-le-Lac, Laval (QC)1964 W. Arthur Johnston, St. Charles CC, Winnipeg (MB)1965 R. Bruce Forbes, Brantford G&CC, Brantford (ON)1966 E. Duncan Millican, Royal Montreal GC, Montreal (QC)1967 Phil Farley, Scarboro G&CC, Toronto (ON)1968 J.A. Swanson, Elmhurst G&CC, Winnipeg (MB)1969 Ray Getliffe, Royal Montreal GC, Montreal (QC)1970 J. Campbell McLean, Capilano G&CC, Vancouver (BC)1971 Patrick C. Osler, Toronto GC, Toronto (ON)1972 Cecil Vineberg, Hillsdale G&CC, Montreal (QC)1973 George C. Hevenor, Sr., Summit G&CC, Toronto (ON)1974 Richard H. Grimm, Mississaugua G&CC, Mississauga (ON)1975 J.D. Heywood, Riverside CC, Saskatoon (SK)1976 Dave Shea, Richelieu Valley GC, Ste-Julie de Vercheres (QC) 1977 T. George Armstrong, Lambton G&CC, Toronto (ON)1978 R. Bruce Bailey, Calgary G&CC, Calgary (AB)

1979 W. Len Goldson, Toronto GC, Toronto (ON)1980 Ralph M. Everson, Kanawaki GC, Kahnawake (QC)1981 Ralph Costello, Riverside CC, Saint John (NB)1982 John S. Marshall, Q.C., Hamilton G&CC, Ancaster (ON)1983 Manual Bricker, Glendale G&CC, Winnipeg (MB)1984 Wm. A. Farlinger, F.C.A., Lambton G&CC, Toronto (ON)1985 James D. Bruce, Capilano G&CC, Vancouver (BC)1986 Dr. Douglas G. Brewer, Fredericton G&CC, Fredericton (NB)1987 Thomas P. Wood, Derrick G&WC, Edmonton (AB)1988 Harold Brownstein, Elm Ridge GC, Île Bizard (QC)1989 Keith Rever, Wascana GC, Regina (SK)1990 Robert G. Long, Rosedale GC, Toronto (ON)1991 Peter J. Hope, Brightwood G&CC, Dartmouth (NS)1992 Hugh G. Hallward, Royal Montreal GC, Montreal (QC)1993 Findlay S. Young, Prince George G&CC, Prince George (BC)1994 W. Keith Gray, Toronto Hunt Club, Toronto (ON)1995 Jacques Nols, Kanawaki GC, Montreal (QC)1996 N. Douglas Ross, Q.C., Belvedere G&WC, Charlottetown (PE)1997 F.A. (Al) Macatavish, Elmhurst G&CC, Winnipeg (MB)1998 F. Gordon Coyle, Mississaugua G&CC, Mississauga (ON)1999 Worden Teasdale, Markland Woods G&CC, Toronto (ON)2000 Donald Griffiths, Point Grey G&CC, Vancouver (BC)2001 Roger Archambault, Beloeil GC, Beloeil (QC)2002 Harry Zuzak, Coloniale G&CC, Beaumont (AB)2003 James A. Grant, Royal Montreal GC, Montreal (QC)2004 David D. Shaw, Riverside G&CC, Saint John (NB)2005 James Halliday, Victoria GC, Victoria (BC)2006 Wayne C. Petersen, Paradise Canyon Golf Resort, Lethbridge (AB)2007 Garry West, Bayview G&CC, Thornhill (ON)2008 Andrew Cook, Markland Woods GC, Etobicoke (ON)2009 Tom McCarthy, Ashburn GC, Halifax (NS)2010 Jack McDonald, Rivershore Golf Links, Kamloops (BC)2011 Karen Rackel, Q.C., Highlands GC, Edmonton (AB)2012 Diane Dunlop-Hébert, Mount Bruno, Montréal (QC)2013 Michael P. Carroll, Q.C., Point Grey GC, Vancouver (BC)2014 Douglas Alexander, London Hunt & CC, London (ON)2015 Paul McLean, Coppinwood GC, Goodwood (ON)2016-17 Roland A. Deveau, Q.C., Clare G&CC, Church Point (NS) 2018 Leslie Dunning, Earl Grey GC, Calgary (AB)

EXECUTIVE TEAM Laurence Applebaum Chief Executive Officer Garrett Ball Chief Financial Officer / Ethics CommissionerBill Paul Chief Championship OfficerJohn Sibley Chief Commercial OfficerJeff Thompson Chief Sport Officer

FINANCE & ADMINISTRATIONGarrett Ball Chief Financial Officer / Ethics CommissionerDawn Anderson Executive Assistant to the CEO / Board AdministratorAlison Richmond Director, Human ResourcesDanielle Clouse Coordinator, Human ResourcesNatalie Henein Senior AccountantStephanie Charteris Intermediate AccountantKathy Oliver Front Desk CoordinatorMeggan Gardner Director, Heritage ServicesKelsey Clayton General Manager, Calgary Golf CentreKrista Nielsen Assistant Manager, Calgary Golf Centre

MEMBER SERVICES & SPORT PROGRAMSJeff Thompson Chief Sport OfficerDave Stockton Director, Member Services & High Performance SportBlair Armitage Regional Director, Member Services, Western CanadaGuy Bernier Regional Director, Member Services, Québec & Ottawa ValleyJeffrey Hutt Regional Director, Member Services, Atlantic CanadaRyan Logan Regional Director, Member Services, OntarioTaylor Stevenson Manager, Member ServicesJordan Vizena Senior Coordinator, Member ServicesMaketo Binzangi Coordinator, Member ServicesBrian Doherty Coordinator, Member ServicesCraig Loughry Director, Handicap & Course RatingAdam Helmer Director, Rules, Competitions & Amateur StatusDan Hyatt Manager, Rules & Competitions Adam Cinel Coordinator, CompetitionsAkash Patel Coordinator, CompetitionsKelly Dawdy Manager, Future Links Golf in SchoolsAdam Hunter Manager, Grow the GameNathalie Mihalek Coordinator, Grow the GameDerek Ingram Head Coach, Men’s National Amateur & Young Pro SquadsTristan Mullally Head Coach, Women’s National Amateur & Young Pro Squads

GOLF CANADA STAFF (as of December 31, 2018)

Robert Ratcliffe Head Coach, National Junior Boys Squad

Matt WilsonDirector, Next Generation PerformanceHead Coach, National Junior Girl’s Squad

Emily Phoenix Coordinator, High Performance Sport

PROFESSIONAL CHAMPIONSHIPSBill Paul Chief Championship OfficerBryan Crawford Tournament Director, RBC Canadian OpenMary Beth McKenna Assistant Tournament Director, RBC Canadian OpenRyan Paul Tournament Director, CP Women’s OpenPaige Ottaviano Assistant Tournament Director, CP Women’s OpenKris Boomhouwer Manager, Operations

COMMERCIALJohn Sibley Chief Commercial OfficerCraig Sharp Managing Director, PartnershipsJeff Payne Director, PartnershipsWhitney Gorges Manager, PartnershipsJason Diplock Managing Director, SalesMichael Evans Director, Sales CP Women’s OpenDave Kay Director, Sales RBC Canadian OpenLauren Andrews Senior Manager, Sales RBC Canadian OpenKen Vezina Manager, Sales RBC Canadian OpenSteve Metzger Manager, Sales RBC Canadian OpenChristiane Beauchamp Supervisor, Sales CentrePeter Kirkpatrick Managing Director, MarketingMarianne Baker Director, BrandPaula Bradford Manager, DesignBrendan Peters Coordinator, Marketing and DesignLjubomir Gorscak Director, CRM & Business AnalysisJeremy Avery Coordinator, Web DevelopmentDan Pino Director, CommunicationsTerry Lenyk Manager, Media & Public RelationsTyler Costigan Manager, Content & Community Philippe Riel Manager, Translation

GOLF CANADA FOUNDATIONMartin Barnard CEO, Golf Canada FounationJoelle Efford Director, Development & EventsAiley Jarvis Coordinator, Scholarship Program & Events

4 Golf Canada

GOVERNORS COUNCILTom Sears, Chair, ONBarbara Allan, ON Diane Barabé, QC Paul Beaudry, ABGordon Campbell, ON Allison Chisholm, NB Jim Clark, ON Shirley d’Entremont, NS Diane Drury, QC Don MacKay, ON Nick Marrone, ON Kevin O’Donovan, MB Christian Osborne, ON

Kelly Roberts, ON Doug Roxburgh, BC Dan Sabourin, BC Herb Schlotter, AB Paul Schofield, QCLaura Small, SK Richard Smith, SK Jean Stone-Séguin, ON Kay Thompson, NL Steven Young, AB Jeff Thompson, Staff Rep,ON

PROVINCIAL COUNCILSusan MacKinnon, Chair, Alberta Golf David Acker, Nova Scotia Golf Association Delbert Betnar, Golf Saskatchewan Ken Casey, Golf Newfoundland Labrador John Gallinger, Golf Ontario Tom Hendershot, Golf New Brunswick Peter Major, Alberta Golf Vince Mariani, Golf Manitoba Brenda McIlwaine / Ryan Garrett, PEI Golf Association Barry Petrachenko, British Columbia Golf Marcel Paul Raymond, Golf Québec Jeff Thompson, Golf Canada

BOARD OF DIRECTORSLeslie Dunning, President, AB (Officer) Charlie Beaulieu, 1st Vice President, QC (Officer)Liz Hoffman, 2nd Vice President, ON (Officer)Roland Deveau, Past President, NS (Officer)David Atkinson, Director at Large, BC Adam Daifallah, Director at Large, QC Dale Jackson, Director at Large, BC Rob MacDonald, Director at Large, MB David McCarthy, Director at Large, ON Susan MacKinnon, Chair, Provincial Council, AB Tom Sears, Chair, Governors Council, ON Laurence Applebaum, Chief Executive Officer, ON

Back Row, L-R: Susan MacKinnon, David McCarthy, David Atkinson, Dale Jackson, Rob MacDonald, Adam Daifallah, Tom Sears Front Row, L-R: Laurence Applebaum, Roland Deveau, Leslie Dunning, Charlie Beaulieu, Liz Hoffman

Back Row, L-R: Herb Schlotter, Doug Roxburgh, Allison Chisholm, Barbara Allan, Richard Smith, Jim Clark, Don MacKay, Steven Young, Paul Schofield, Kelly Roberts, Dan Sabourin Front Row, L-R: Paul Beaudry, Shirley d’Entremont, Jean Stone-Seguin, Diane Barabé, Tom Sears, Jeff Thompson, Diane Drury, Kay Thompson, Gordon Campbell ABSENT: Nick Marrone, Kevin O’Donovan, Christian Osborne, Laura Small

Back Row, L-R: Peter Major, Marcel Paul Raymond, Jeff Thompson Front Row, L-R: Delbert Betnar, Brenda McIlwaine, Susan MacKinnon, Tom Hendershot ABSENT: David Acker, Ken Casey, John Gallinger, Ryan Garrett, Vince Mariani, Barry Petrachenko


Doug Alexander, ON Roger Archambault, QCSheila Bentley, BCDr. Douglas G. Brewer, NBHarold Brownstein, QCMichael P. Carroll, Q.C., BCPeggy Colonello, MBAndrew Cook, ONThelma Coutts, ABMary Drummie, QCDiane Dunlop-Hébert, QCPatricia Edwards, NBAudrey Gordon, BC

James A. Grant, QCW. Keith Gray, ONDonald Griffiths, BCJames Halliday, BCPeter J. Hope, NSRobert G. Long, ONF.A., Al Macatavish, MB Paul McLean, ONGrace McCann, ONTom McCarthy, NSJack McDonald, BCCarole Mix, NBJacques Nols, QC

Wayne C. Petersen, ABKaren Rackel, Q.C., ABKeith Rever, SKN. Douglas Ross, Q.C., PEDavid D. Shaw, NBWorden Teasdale, ONGarry West, ONFindlay S. Young, BCHarry Zuzak, AB

HONORARY LIFE GOVERNORSPast Presidents of both Golf Canada and the (former) Canadian Ladies Golf Association.

COMMITTEES

Standing CommitteesAudit & RiskRob MacDonald, Chair, MB Gordon Campbell, ONJason Hammerschmidt, ONDale Jackson, BCDavid McCarthy, ONLeo Perri, ONTom Sears, ONLaura Small, SKGarrett Ball, Staff Rep, ON

CompensationCharlie Beaulieu, Chair, QC Roland Deveau, NSLeslie Dunning, ABLiz Hoffman, ONLaurence Applebaum, Staff Rep, ON

GovernanceCharlie Beaulieu, Chair, QCDavid Atkinson, BCPaul Beaudry, AB Diane Drury, QC Susan MacKinnon, AB Marcel Paul Raymond, QCHerb Schlotter, ABLaura Small, SK Dawn Anderson, Staff Rep, ON Garrett Ball, Staff Rep, ON

Human Resources David Atkinson, Chair, BCBarbara Allan, ON Roger Beach, ONAllison Chisholm, NB Jim Clark, ON Shirley d’Entremont, NS Diane Drury, QC Dan Sabourin, BCJean Stone-Sequin, ON Alison Richmond, Staff Rep, ONDanielle Clouse, Staff Rep, ON

Investment Tom Sears, Chair, ONRoger Beach, ONPeter Boronkay, BCGordon Campbell, ON Tom Forestell, ONRob MacDonald, MBKelly Roberts, ONRobin Roopchan, ONGarrett Ball, Staff Rep, ON William Chyz (consultant), ONDavid Kaufman (consultant), ON

Nominating Doug Alexander, Chair, ONRoland Deveau, NSPaul McLean, ONMarcel Paul Raymond, QC Pat Thompson, BCKay Thompson, NLLaurence Applebaum, Staff Rep, ON

Operating CommitteesAmateur CompetitionsLiz Hoffman, Chair, ONHelen Banning, ONDiane Barabé, QCRob Laing, BC Dan Sabourin, BCHerb Schlotter, AB Paul Schofield, QCSusan White, BC Steven Young, ABAdam Helmer, Staff Rep, ON

CGHF Selection CommitteeSandra Post (Honoured Member), Chair, ONGraham Cooke (Honoured Member), QCWarren Crosbie, ONTed Fletcher, QCTiffany Gordon, ABTom McCarthy, NSGarry McKay, ONDeborah Pyne, BCLorne Rubenstein (Honoured Member), ON Harry Brotchie, MBMeggan Gardner, Staff Rep, ON

Handicap & Course Rating Richard Smith, Chair, SK Allison Chisholm, NBBob Heath, ONKathy Hill, ONBill MacMillan, NSHerb Schlotter, AB Judy Sefton, SKNancy Spineti Delle-Donne, QCKaren Vanzella, BCCraig Loughry, Staff Rep, ON

Heritage Services Barbara Allan, Chair, ON Adam Daifallah, QCDave Daye, ONIan Giles, ONDiane Imrie, ONGarry McKay, ONMarlene Streit, ONMeggan Gardner, Staff Rep, ON

Rules & Amateur StatusDiane Barabé, Chair, QCTom Forestell, ONDale Jackson, BC Brian Lee, SKJack McDonald, BCDan Sabourin, BCJean Stone-Séguin, ONJohn Turner, ON Bruce Watson, NLTom Zariski, ABAdam Helmer, Staff Rep, ON

Sport Doug Roxburgh, Chair, BCMatt Allen, ONGlenn Cundari, ONDoug Hastie, BCGraham Hill, ON Liz Hoffman, ONStephen Norris, ABKelly Roberts, ONPat Thompson, BCJeff Thompson, Staff Rep, ON

6 Golf Canada

PRESIDENT’S REPORT

Golf is a sport rooted in respect: Respect for our fellow golfers, the

environment, the rules of golf and the course itself. Golf is also built

on values such as honesty, self-discipline, inclusion, health, friendship

and fun. These values are some of the reasons so many people, myself

included, love the game.

Today there is more diversity in golf than ever before. Outreach, to

many of the diverse groups of golfers across the country, has been a

good first step in building relationships, learning how we can support

their priorities and sharing how everyone can be part of Golf Canada.

Golf in Schools is fundamental to inclusion, as it provides young

people the opportunity to be exposed to the sport. When schools are

“adopted”, and students have the opportunity to visit golf facilities, they

are more likely to become life-long golfers. Increasing the number of

women and girls engaged in golf, as players, competitors, volunteers

and professionals in the golf industry, is another important inclusion

goal that Golf Canada and many other stakeholders are working

towards together.

This year, I attended activities from modernized Rules of Golf education

sessions, to Future Links events, to amateur and professional championships,

to the Canadian Golf Hall of Fame Induction Ceremony. Golfers, at every

level, were a joy to meet, watch and celebrate. But the highlight of the year

was being present for Brooke Henderson’s historic win at the CP Women’s

Open in Regina!

Thank you to the thousands of volunteers and professionals who conducted

national, provincial, local and club activities, as well as hundreds of charity

events from coast to coast. Special thanks to our “behind the scenes”

volunteer course raters, museum personnel and the many volunteers and

staff serving in support, administrative and committee functions.

Financial accountability is a priority for Golf Canada, and we are proud

of the strong year-over-year operating results in 2018. Unfortunately,

the downturn in financial markets near the end of the fiscal year had

a significant effect on our investment portfolio. This underscores the

importance of Golf Canada’s progress towards operational profitability.

The Golf Canada Board of Directors is pleased to have our CEO

Laurence Applebaum present the strategic plan for 2019-2022 during

the Annual Meeting. Laurence, and the management team, are to be

commended on the collaborative process undertaken in developing this

road map. Thanks to all of our stakeholders that took the time to provide

valuable input throughout the creation of this plan.

Thank you to provincial associations, club boards, club managers, course

owners, superintendents and PGA of Canada professionals, for your

contributions to increasing participation and excellence in golf. The

media professionals, who so capably share the stories of golf, must also be

recognized for their impact on growing the game. Much appreciation is

due to Sport Canada, the Canadian Olympic Committee, the R&A, USGA,

LPGA Tour, PGA TOUR and Golf Canada Foundation for their support.

Tremendous gratitude to our title sponsors and partners at RBC and

CP; the commitment and leadership shown by your companies and your

people, many who serve as volunteers at the Opens, is inspiring.

Thank you for the privilege of serving as Golf Canada’s 114th President.

Leslie Dunning, CPA, CMA

President

Golf Canada


Brooke Henderson l 2018 CP Women’s Open Champion

8 Golf Canada

than Brooke’s historic victory at Wascana Country Club in Regina.

Eight Canadians enter 2019 with PGA TOUR status—Adam Hadwin,

Mackenzie Hughes, Corey Conners, Nick Taylor, Ben Silverman and

David Hearn with Adam Svensson and Roger Sloan earning their card

via the Web.com Tour. On the LPGA Tour, Brooke will be joined by

Alena Sharp, Brittany Marchand and A.C. Tanguay along with Team

Canada star, Jaclyn Lee, who turned pro after earning her card at

Q-School this past fall.

Golf Canada continues to invest in our high-performance program,

including athletes and coaches. The evolution of the Team Canada

program features the centralized training of Junior Squad athletes

and coaches at our National Training Centre at Bear Mountain Resort

in Victoria.

Our national amateur championships continue to provide an

environment that promotes participation and development at the

highest level. My sincere congratulations and appreciation go out to

the forty-three individual, team and inter-provincial champions, as well

as our proud host member clubs and the thousands of volunteers who

give their time in support of golf in their community.

Sport programs are increasing participation in golf through a variety

of engaging programs including our internationally recognized junior

program—Future Links—which is currently running in 691 facilities

nationwide. Golf in Schools added 316 new sites in 2018 to bring

the total number of participating schools to 3,748 across Canada.

In partnership with the Provincial Golf Associations and the PGA of

Canada, our Get Linked strategy saw 131 facilities receive 271 total

grants to connect students with golf facilities running Future Links

junior golf activities in their community.

In collaboration with provincial, national and international partners,

Golf Canada is committed to providing resources and services to drive

value and growth to our entire membership. We are pleased that 1015

of existing member clubs have been converted to the Gold Membership

model at the end of our 2018 fiscal. As we work to deliver enhanced

value to member golfers and facilities, we are tracking towards 100%

Gold Membership conversion among our 1,390 member facilities by

the end 2019. Another key priority continues to be the finalization

of Golf Canada’s go-to-market strategy to engage public golfers and

facilities over the next three years.

The development and roll-out of the new modernized Rules of Golf

including education and certification was a significant undertaking

in partnership with the R&A and USGA. The integrated launch of the

new Rules Modernization in 2019 has started very strongly. Golf’s

governing bodies are now working collaboratively on the next major

initiative, the World Handicap System. Throughout the upcoming year,

Golf Canada will be an integral part of the development, testing and

implementation, which takes effect January 1, 2020.

As outlined in our enclosed financial statements, management is

pleased to report one of our most successful financial years in the last

On many levels, 2018 was one of the most successful years in Golf

Canada’s recent history and I am incredibly proud of the progress and

results achieved by the entire organization.

We experienced incredible momentum with particular highlights at our

Championships including dynamic champions in Brooke Henderson and

Dustin Johnson, exciting future venues, deepened partner engagements,

and new leadership appointments that have both events on strong

footing moving forward. Our goal is to elevate our National Open

Championships to premier internationally recognized tournaments that

are must attend events for players, spectators and corporate partners.

Together with RBC and the PGA TOUR, we proudly announced a new

chapter for the RBC Canadian Open beginning in 2019, highlighted

by the move to an exciting June date—leading into the U.S. Open.

Management has worked with RBC on a refreshed vision for the

RBC Canadian Open as a premier, sports and entertainment festival

marking the start of summer in the Greater Toronto Area, and a renewal

of our extended partnership for the next five years. Similarly, the

CP Women’s Open in August will continue to be pillar of excellence

thanks to a five-year title sponsorship extension with Canadian Pacific

and the LPGA Tour that runs through 2023.

Our 2019 Professional Championships will be conducted at historic

venues, with the prestigious Magna Golf Club in Aurora, Ont., hosting the

CP Women’s Open and Hamilton Golf and Country Club to host the first

of two (2019 and 2023) RBC Canadian Opens over the next five years.

A priority focus for 2019 will be securing host venues for both National

Championships for 2020, 2021 and 2022.

There is great excitement behind the talented athletes representing

Canada on the global golf stage and no result was more captivating

CEO REPORT


Committee and our proud member clubs. We are also encouraged by

collaboration with international partners such as the R&A, USGA, PGA

TOUR, LPGA Tour and Augusta National Golf Club on shared initiatives

to increase participation and excellence in golf.

Diversity, access and inclusion remain priorities for the global golf

community and Canada is well positioned as a best practice example

in leading these important changes. All golf enthusiasts deserve

to participate and compete in a safe sport environment, free from

harassment, abuse or discrimination, regardless of gender, race, religion,

language, age and ability. Golf Canada is fully aligned with the important

work of Sport Canada in this critical issue and encourage all those

connected with our sport—athletes, parents, coaches, staff, volunteers

and club representatives—to maintain an open dialogue to ensure a safe

and supportive environment, without exception, across the Canadian

golf landscape.

I am proud of what Golf Canada achieved across many areas of our

operation and look forward to sharing our new Strategic Plan (2019-

2022). A most sincere thank you to the golfers, member clubs, athletes,

volunteers, sponsors and passionate stakeholders who have contributed

to Golf Canada and the overall health of our sport.

Golf is in great shape and we look forward to advancing the sport and

driving Golf Canada’s vision to be a world leader in golf.

Laurence Applebaum

Chief Executive Officer

Golf Canada

decade at the net operations level with a surplus to our annual budget,

before investments and amortization, recognizing a $603K improvement

in the net operating deficit compared to 2017 results.

The strong acceleration of revenue growth was a major highlight of 2018

as we strive to develop world-class properties and integrated marketing

platforms that enhance Golf Canada’s brand, while delivering sustainable,

profitable revenues to maximize our reinvestment into the sport. In

addition to title partners RBC and CP, we are pleased to have premier

partners such as Acushnet, Steam Whistle, Levelwear, adidas Canada,

Acura, the City of Hamilton, Sport Canada, Golf Town and others support

Golf Canada’s reinvestment objectives. We are also appreciative of

support from the Golf Canada Foundation, which contributed more than

$1.3M in grants to support high performance, grassroots programming,

post-secondary scholarships and sport development initiatives.

The development of our membership strategy to engage public players

and facilities, paired with a deeper commercialization of the platforms

and channels that comprise Golf Canada’s Digital Network, will elevate

engagement with the golf consumer, enrich the conversation with our

membership base and deliver enhanced Premium Sponsor benefits.

Although encouraged by the significant year-over-year improvement to

Golf Canada’s Net Operating Results and overall revenue growth, the Q4

capital markets plummet resulted in disappointing investment income

compared to 2017. Management will continue to evaluate every area of

our operation for revenue growth and efficiencies to lessen the impact of

investment income volatility on our organization.

Establishing deeply connected and mutually beneficial relationships with

Canadian and international partners is a priority for Golf Canada. We

continue to drive sport and industry initiatives through integrated work

with the Provincial Golf Associations, PGA of Canada, NGCOA Canada,

the club managers, superintendents, Sport Canada, the Canadian Olympic

10 Golf Canada

number of Canadian charitable events conducted at golf courses each year that help to raise approximately

16

20

$533 Million

37,000

5.7 Million golfers in Canada 314,000 total number of Golf Canada members at 1,390 member facilities

60,000,000 approximate number of rounds played annually in Canada

number of competitors atGolf Canada Competitions2,936 2 honoured members

elected to the Canadian Golf Hall of Fame: Gail Graham, A.V. Macan 8 Canadians

earn PGA TOUR status 5 Canadians

earn LPGA Tour status

20,500 Facebook likes @GolfCanada 12,840,598 12,840,598 number of

page views on golfcanada.ca

Instagram followers @TheGolfCanada5,800 32,500 Twitter followers

@GolfCanada

7,265,904 scores posted to golfcanada.ca

number of Canadians who track an official handicap

235,624

countries represented at the Canadian Men’s and Women’s Amateur Championships (combined)countries represented at the World Junior Girls Championship

new schools adopted into Future Links, driven by Acura Golf in Schools316

Dustin Johnson wins the RBC Canadian Open

Canadians competed in the 2018 RBC Canadian Open at

Glen Abbey Golf Club

Canadians competed in the CP Women’s Open at Wascana Country Club

3,748 total schools

451,440 total students

$1.3 Millionawarded through funding from the Golf Canada Foundation

691 golf facilities registered

96,000 juniors participated in programming

733 mobile clinics

117 facilities took part in Junior Skills Challenge

635 PGA of Canada professionals programming

78182

newly trained Community Golf Coachesin-school visits conducted by PGA of Canada professionals

2,298 golf facilities in Canada (ranking it second in the world in total supply)

84% of Canadian golfers are public players

14.3 Billion economic impact of golf in Canada

RBC Canadian Open awarded PGA TOUR’s

“BEST IN-CLASS ELEMENT” for The Rink

Brooke Henderson captures the CP Women’s Open, becoming the first Canadian to win since Jocelyne Bourassa in 1973

Henderson repeats as Canadian Press

& Postmedia Female Athlete

of the Year

175 Golf Fore the Cure presented by Subaru events conducted nationally

14,000 Golf Fore the Cure presented by Subaru participants

$6.7 Million raised to date in support of breast cancer research

wins across various professional golf tours by Young Pro Squad members since the program launched in 2014

117national certified Level 4 Rules Officials

3535

number of Canadian charitable events conducted at golf courses each year that help to raise approximately

16

20

$533 Million

37,000

5.7 Million golfers in Canada 314,000 total number of Golf Canada members at 1,390 member facilities

60,000,000 approximate number of rounds played annually in Canada

number of competitors atGolf Canada Competitions2,936 2 honoured members

elected to the Canadian Golf Hall of Fame: Gail Graham, A.V. Macan 8 Canadians

earn PGA TOUR status 5 Canadians

earn LPGA Tour status

20,500 Facebook likes @GolfCanada 12,840,598 12,840,598 number of

page views on golfcanada.ca

Instagram followers @TheGolfCanada5,800 32,500 Twitter followers

@GolfCanada

7,265,904 scores posted to golfcanada.ca

number of Canadians who track an official handicap

235,624

countries represented at the Canadian Men’s and Women’s Amateur Championships (combined)countries represented at the World Junior Girls Championship

new schools adopted into Future Links, driven by Acura Golf in Schools316

Dustin Johnson wins the RBC Canadian Open

Canadians competed in the 2018 RBC Canadian Open at

Glen Abbey Golf Club

Canadians competed in the CP Women’s Open at Wascana Country Club

3,748 total schools

451,440 total students

$1.3 Millionawarded through funding from the Golf Canada Foundation

691 golf facilities registered

96,000 juniors participated in programming

733 mobile clinics

117 facilities took part in Junior Skills Challenge

635 PGA of Canada professionals programming

78182

newly trained Community Golf Coachesin-school visits conducted by PGA of Canada professionals

2,298 golf facilities in Canada (ranking it second in the world in total supply)

84% of Canadian golfers are public players

14.3 Billion economic impact of golf in Canada

RBC Canadian Open awarded PGA TOUR’s

“BEST IN-CLASS ELEMENT” for The Rink

Brooke Henderson captures the CP Women’s Open, becoming the first Canadian to win since Jocelyne Bourassa in 1973

Henderson repeats as Canadian Press

& Postmedia Female Athlete

of the Year

175 Golf Fore the Cure presented by Subaru events conducted nationally

14,000 Golf Fore the Cure presented by Subaru participants

$6.7 Million raised to date in support of breast cancer research

wins across various professional golf tours by Young Pro Squad members since the program launched in 2014

117national certified Level 4 Rules Officials

3535

12 Golf Canada

CANADIAN UNIVERSITY/COLLEGE CHAMPIONSHIPChilliwack Golf Club,

Chilliwack, BC, May 29-June 1

MEN’S Team: University of the Fraser Valley Cascades

Medallist: Daniel Campbell (University of the Fraser Valley Cascades)

WOMEN’S Team: University of British Columbia Thunderbirds

Medallist: Avril Li (University of British Columbia Thunderbirds)

CANADIAN WOMEN’S AMATEUR CHAMPIONSHIPMarine Drive Golf Club,

Vancouver, BC, July 24-27

Yealimi Noh, Concord, CA Inter-provincial: British Columbia

CANADIAN JUNIOR BOYS CHAMPIONSHIPMedicine Hat Golf & CC,

Medicine Hat, AB, July 30-August 2

Christopher Vandette, Beaconsfield, QC Juvenile:

Christopher Vandette, Beaconsfield, QC Inter-provincial:

Alberta

CANADIAN JUNIOR GIRLS CHAMPIONSHIPBeach Grove Golf Club,

Tsawwassen, BC, July 31-August 3

Céleste Dao, Notre-Dame-de-l’Île-Perrot, QC Juvenile:

Emily Zhu, Richmond Hill, ON Inter-provincial:

Québec

CANADIAN MEN’S AMATEUR CHAMPIONSHIPDuncan Meadows GC & Pheasant Glen GR, Duncan / Qualicum Beach, BC, August 6-9

Zach Bauchou, Forest, VA Inter-provincial:

Québec

CANADIAN MEN’S MID-AMATEUR CHAMPIONSHIPVictoria Golf Club,

Victoria, BC, August 21-24

Joseph Deraney, Belden, MS Mid-Master:

Todd Fanning, Winnipeg, MB Inter-provincial:

Ontario

RBC CANADIAN OPEN CHAMPIONGlen Abbey Golf Club

Oakville, ON

July 26-29

Dustin Johnson


CANADIAN WOMEN’S MID-AMATEUR & SENIOR CHAMPIONSHIPLookout Point Country Club, Fonthill, ON, August 28-30

Mid-Amateur: Sue Wooster, Australia

Mid-Master: Sue Wooster, Australia

Senior: Sue Wooster, Australia

Super-Senior: Jackie Little, Procter, BC

Inter-provincial: Ontario

CANADIAN MEN’S SENIOR CHAMPIONSHIPGowan Brae Golf & CC,

Bathurst, NB, September 4-7

Brady Exber, Las Vegas, NV Super-Senior:

Doug Roxburgh, Vancouver, BC Inter-provincial: British Columbia

WORLD JUNIOR GIRLS CHAMPIONSHIPCamelot Golf & CC,

Cumberland, ON, September 11-14

Team: Italy

Medallist: Atthaya Thitikul (Thailand)

FUTURE LINKS FALL SERIES EAST CHAMPIONSHIPClub de golf Owl’s Head,

Mansonville, QC, September 14-16

Boys: Yuqi Liu, Thornhill, ON Girls: Hailey McLaughlin, Markham, ON

FUTURE LINKS FALL SERIES EAST CHAMPIONSHIPSunshine Coast Golf & Country Club, Roberts Creek, BC, September 28-30

Boys: Ilirian Zalli, Burnaby, BC Girls: Jennifer Gu, West Vancouver, BC

PACIFIC CHAMPIONSHIP Bear Mountain Resort – Valley Course,

Victoria, BC, May 11-13

Boys: Cole Wilson, Kelowna, BC

Girls: Monet Chun, Richmond Hill, ON

ONTARIO CHAMPIONSHIP Otter Creek Golf Club,

Otterville, ON, May 25-27

Boys: Laurent Desmarchais, Longueuil, QC

Girls: Taylor Kehoe, Strathroy, ON

QUÉBEC CHAMPIONSHIP Club de Golf Lachute,

Lachute, QC, June 8-10

Boys: Robbie Latter, Mississauga, ON

Girls: Emily Romancew, Pierrefonds, QC

PRAIRIE CHAMPIONSHIP Portage Golf Club,

Portage La Prairie, MB, June 15-17

Boys: Wesley Hoydalo, Selkirk, MB

Girls: Sydney Scraba, Calgary, AB

WESTERN CHAMPIONSHIP Highwood Golf & Country Club,

High River, AB, June 1-3

Boys: Kai Iguchi, Banff, AB

Girls: Taylor Stone, Calgary, AB

ATLANTIC CHAMPIONSHIP Twin Rivers Golf Course,

Port Blandford, NL, July 17-19

Boys: Owen Mullen, Truro, NS

Girls: Haley Baker, Halifax, NS

CP WOMEN’S OPEN CHAMPIONWascana Country Club

Regina, SK

August 23-26

Brooke Henderson

14 Golf Canada

Monet ChunRichmond Hill, ON

Céleste DaoNotre-Dame-de-l’Île-Perrot, QC

Alyssa DiMarcantonioMaple, ON

Ellie SzerykLondon, ON

TEAM CANADA

NATIONAL SQUAD

YOUNG PRO SQUAD

Hugo BernardMont-Saint-Hilaire, QC

Chris CrisologoRichmond, BC

Josh WhalenNapanee, ON

Joey Savoie La Prairie, QC

Jared du ToitKimberley, BC

Stuart Macdonald Vancouver, BC

Albin ChoiToronto, ON

Taylor PendrithRichmond Hill, ON

Grace St-GermainOttawa, ON

Jaclyn LeeCalgary, AB

Maddie SzerykLondon, ON

Naomi KoVictoria, BC

Augusta JamesBath, ON

Jennifer HaCalgary, AB

Brittany MarchandOrangeville, ON

Anne-Catherine TanguayQuebec City, QC

JUNIOR SQUAD

Christopher VandetteBeaconsfield, QC

Johnny TravaleStoney Creek, ON

Nolan ThoroughgoodVictoria, BC

Peyton CallensLangton, ON

Thomas CritchHamilton, ON


Céleste Dao l Team Canada

16 Golf Canada

ANNUAL NET OPERATING DEFICIT(IN THOUSANDS)

2014

-$2,453

-$1,703

-$1,051 -$1,376

-$773

2015 2016 2017 2018

FINANCIAL ANALYSISThe 2018 fiscal year-end concluded with a significant improvement

in Golf Canada’s Results– a $603K improvement in the annual Net

Operating Deficit compared to 2017 and a 24% net gain compared

to our planned 2018 budget. Golf Canada endeavours to materially

strengthen its financial stability which has now seen three consecutive

years of positive results versus budget in our Net Operating Deficit.

Management continues to develop and execute on strategies to ensure

the long-term health of Golf Canada. Our partners at the Provincial

Golf Associations, volunteers, stakeholders, and staff deserve to be

commended for their collaboration and valued contributions which

have resulted in such improved operating results in 2018.

Continuing to improve the Net Operations financial ratio was an

important objective in 2018. During the year, the Board of Directors

approved a revision to the internally-imposed Financial Mandate which

now requires that the Net Operating Deficit be reduced to breakeven

by 2022. This will help to increase the use of our investment portfolio

capital for long-term strategic initiatives and provide security if volatility

in global capital markets affects our annual investment income.

2018 FINANCIAL RESULTS

Golf Canada has a responsibility to operate and support program initiatives that create

awareness, increase participation and drive excellence in the sport. We have a duty to

support and provide benefit to members, golfers and facilities, and provide them with

tools and resources to drive participation.

Notwithstanding our Amateur Championships, we are proud to report that all facets

of our Member Services and direct programs recognized improvements in their net

contribution compared to 2017. The net contribution of our program support also

improved by a healthy $421K and our aggregate Professional Championships net

contribution also improved by $127K. The Golf Canada Calgary Centre, hampered by

harsh weather in the spring and fall, only recognized a surplus of $28K – a decrease of

$137K compared to 2017.

Primarily based on the 3.3% growth in total revenue, a trend which has continued

consecutively since 2014, we are proud of the programs, services and championships

we delivered in 2018.

Unfortunately, this risk came to fruition in fiscal 2018 as capital

markets plummeted in the two months prior to our October 31

fiscal year-end, causing the fair value of our investment portfolio

to decrease by $943K (net of distributions) in this period alone.

Golf Canada’s investment income decreased by $1,619K compared

to 2017. This was the lead factor which led to the final $982K

Deficiency of Revenues over Expenses recognized in 2018.

Nonetheless, there were several qualitative successes of which we

are proud to report:

• the Senior Leadership Team of Golf Canada was enhanced with the hiring of Chief

Commercial Officer, John Sibley as well as the hiring of new RBC Canadian Open

Tournament Director, Bryan Crawford and appointment of Ryan Paul as new

CP Women’s Open Tournament Director;

• a long-term title sponsorship and Team Canada premier partnership with Canadian

Pacific Railway was renewed through 2023 with meaningful growth along with the

selection of Magna Golf Club in Aurora as host of the 2019 CP Women’s Open;

• a new date, purse, title sponsorship fee and enhanced multi-faceted premier

partnership was signed with RBC and the PGA TOUR in conjunction with the

RBC Canadian Open through 2023;

• a dynamic, multi-year City of Hamilton agreement along with securing a coveted

spot in the R&A’s Open Qualifying Series for the RBC Canadian Open;

• the Golf Canada National Training Centre and centralized program for the

Development Squad at Bear Mountain Golf Resort in Victoria was successfully

launched;

• enhanced sponsorship agreements with Acushnet Canada, Golf Town and the

aforementioned RBC, were renewed for broad and digitally integrated Golf Canada

umbrella sponsorships;

• our partners at the Golf Canada Foundation also recognized a very successful fiscal

year in which $1,306K of grants were issued – a 52% increase over 2017.

Further details on all major aspects of Golf Canada’s core operations are outlined below.

MEMBER SERVICES

Member dues are an integral source of funding for Golf Canada and our partners at

the Provincial Golf Associations. The net contribution of Member Services is dedicated

to offset the cost of delivering our direct programs and services as the National Sport

Federation.

In 2018, we put forth a concerted effort to transition member facilities into our

enhanced membership model which is ripe with benefits for both the facility and the

golfer. A tremendous and resounding collaboration with our Provincial Association

partners has helped convert over 1,015 facilities nationally. As at October 31, 2018,

Golf Canada’s full-paid membership is approximately 270,000 (2017 – 274,750).

Golf Canada is transitioning away from the previously offered free (‘bronze’)

membership (approximately 44,000 individuals) with a strategy to convert those

at this level to full-paid members as part of our public-player strategy. During the

year, we completed a strategy focused on targeting and engaging the mass number

of public-players in Canada which will be initiated in 2019. We believe that there

are a significant number of these golfers in Canada that will embrace the enhanced

membership value proposition. We are particularly proud of the incident protection

member benefit introduced in 2018 which can support an individual Gold member

with up to $6,000 on an annual basis for incident protection. In 2018, Golf Canada

paid out $115K in claims under this benefit to our members.

The new benefits are only associated with our Gold membership program, sold in

conjunction with our Provincial Golf Association partners. With living wages growing

across the country and additional benefits continually being enhanced or added, we will

continue to review our long-term pricing strategy to help ensure the net contribution

of Member Services is a healthy contributor to support programs and services. In 2018,

TOTAL REVENUE(IN THOUSANDS)

2014

$33,671$35,424

$37,214$38,563

$39,824

2015 2016 2017 2018


through volume rebates on the scale of the benefits provided and increased market

prices that were implemented to account for a variety of factors, we increased our net

contribution to $2.5M (up from $2.4M in 2017).

After an allocation of program support expenses, based on a pro-rata estimate of

activities and resources, the total gross revenues generated from Member Services

were directed to programs and services apportioned amongst strategic pillars as

follows: 63% on growing participation (including gold benefit costs, member services,

and Future Links, among others); 24% on ensuring excellence (amateur championships

and high-performance programming); 12% to expand capacity (rules and amateur

status, handicap and course rating); and 1% toward fostering interaction in the sport.

GRASS ROOTS PROGRAMS

Funding for grass roots programs is derived from five primary sources—participation

fees, grants, Sport Canada, corporate partnerships and donations. In 2018, with the

financial assistance of Indigenous and Northern Affairs Canada and operating support

from the PGA of Canada and University of Ottawa, we conducted a pilot program in

the Alexander First Nation community in Alberta. The pilot was primarily focused on

Life Skills development and utilizing the Future Links Golf in Schools program—two

components of our Future Links, Driven by Acura programming, to enhance community/

parent involvement in Alexander. A total of 691 facilities (up from 560 in 2017)

registered with Golf Canada to run one or more of the several Future Links junior golf

components, including, Girls Club, Learn to Play, and the Junior Skills Challenge.

Our partners and stakeholders in the Golf in Schools component of Future Links see

tremendous value in using schools to introduce the sport to children. In particular, the

Get Linked Initiative provides grants to facilities or PGA of Canada Professionals for

hosting field trips with schools or visiting the school and assisting the facilitation of

Golf in Schools. Golf Canada’s continued investment towards Golf in Schools would

not be possible without the continued support of individual donors and corporate

partners, particularly Acura, Golf Town, Golf Ontario, ClubLink, The Canadian Seniors

Golf Association and the Golf Canada Foundation. In addition, 271 Get Linked Initiative

grants were issued in 2018 helping to increase the total schools participating in Golf in

Schools to 3,748 (up from 3,427).

The momentum of the Junior Skills Challenge continued with an exciting National

Event hosted on the opening weekend of the RBC Canadian Open at Glen Abbey Golf

Club. A total of 24 participants from across the country competed in three divisions

before crowning our national Junior Skills Challenge champions. Among the many

success stories, Team Canada member Jaclyn Lee, who recently turned professional

and earned full-status to compete on the LPGA Tour in 2019, competed in the Junior

Skills Challenge National Event six years ago. Junior Skills Challenge is an important

introduction to competition for up and coming Canadian junior golfers.

Finally, the Golf Fore the Cure presented by Subaru, was enhanced in 2018 with an

additional investment from our partners at the Canadian Cancer Society as well as

Adidas Canada. The program, which was hosted at 175 facilities with over 14,000

female participants, collectively donated $423,000 dollars to our charitable recipients

— the Canadian Cancer Society and the Quebec Breast Cancer Foundation.

HIGH PERFORMANCE (TEAM CANADA)

This investment supported the development of seventeen athletes on Golf Canada’s

national men’s and women’s Junior and Amateur Squads that proudly represented

Canada at many international golf championships as well as on the biggest national

stage during the RBC Canadian Open and CP Women’s Open. Our Young Pro Squad

supported eight up and coming athletes (financial, coaching, and other resources) who

have recently turned professional to help them with their transition. Golf Canada was

especially pleased that among the many athlete successes in 2018, both the men’s and

women’s world amateur teams finished inside the top 10 in 2018.

Funding for Golf Canada’s high-performance program comes from four sources—Sport

Canada, participation fees, corporate partnerships, and a significant investment from

the Golf Canada Foundation. The program’s increased investment in 2018 provided

Golf Canada with the opportunity to increase the number of athletes in the program

by 18% but most importantly, launch the National Training Centre at Bear Mountain

Resort in Victoria, B.C. The National Training Centre provides Team Canada with

year-round access to dedicated high-performance training facilities and amenities.

The first-ever centralization of the Junior Squads and coaching staff in Victoria from

January through April allowed the athletes to significantly increase contact time with

our high-performance staff while attending a local school. We believe that the National

Training Centre will be a significant contributor to supporting the long-term podium

pathway for our athletes.

AMATEUR CHAMPIONSHIPS

Funding for Amateur Championships comes from several sources—Sport Canada,

player entry fees, corporate partnerships and municipal governments, along with

funding from the R&A to aid in conducting the World Junior Girls Championship.

This segment includes the operation of Golf Canada’s eight national amateur

competitions, the World Junior Girls Championship, the Toyota World Junior Boys

Qualifier, and the Future Links, driven by Acura Junior Championships. In 2018, our

costs increased by 3% compared to 2017 as we introduced two additional Future

Links Championships which were conducted in the fall. In addition, 2018 was Canada’s

rotational opportunity to host the Toyota World Junior Boys Championship which was

contested at Bear Mountain Resort.

Continued investment, strong player recruiting, and support from municipalities has

helped us grow the Women’s National Amateur Championship and World Junior Girls

Championship to high A-strength events in the world amateur golf ranking system.

PROFESSIONAL CHAMPIONSHIPS

The 2018 CP Women’s Open was a spectacular moment in the history of Canadian golf

with Brooke Henderson becoming the first Canadian in 45 years to win the National

Open. This was the first time the CP Women’s Open (or any major professional golf

championship) had ever been to Saskatchewan, and the City of Regina, the Regina

Hotel Association, and Tourism Saskatchewan were tremendous hosts and supporting

partners. In 2018, the inaugural CP Women’s Leadership Summit on Tuesday of

tournament week was successfully introduced as a pillar component of the event

going forward. The CP Has Heart campaign raised $2M in support for the Jim Pattison

Children’s Hospital while Golf Canada continued to recognize commercial growth for

the 4th consecutive year in total revenues for the event.

The 2018 RBC Canadian Open was once again held at Glen Abbey Golf Club in

Oakville, Ont., returning to the historic course for the 30th time. The hockey-themed

7th hole, dubbed “The Rink” was enhanced and is now a must-see component of

the onsite experience – we are proud to announce that it was named “Best-in-Class

Element” across all PGA TOUR events in 2018. Golf legend Lee Trevino was the

honoured guest and keynote speaker at the RBC Hall of Fame Day celebration on

Tuesday of tournament week where Gail Graham and the late, A.V. Macan were

inducted into the Canadian Golf Hall of Fame. Team RBC member Dustin Johnson

capped a fantastic event by winning his first RBC Canadian Open.

The aggregate surplus of the RBC Canadian Open and CP Women’s Open increased by

$126K compared to 2018.

THE GOLF CANADA CALGARY CENTRE

In addition to serving as a revenue source, Golf Canada’s Calgary Centre provides an

opportunity to test and run golf development programs; provides access for Calgary-

based schools and high-performance athletes from Alberta; and increases Western-

Canada brand awareness for Golf Canada. The facility operates a 9-hole short course;

a driving range with a double-decker hitting stall structure that includes space for up to

60 patrons; indoor golf simulators; and a vast teaching academy supported by PGA of

Canada professionals. The driving range stalls are heated which permits practice and

training year-round.

Like other facilities in the area, the Calgary Centre endured dreadful weather in 2018.

The year started with snow and bone-chilling temperatures delaying the opening of the

par-3 and putting courses by 45 days compared to our 2017 opening date. Despite this,

revenues only decreased 1% but expenses increased 9% due to the implementation of

several new strategic initiatives, pro shop enhancements, and the effect of the Alberta

government’s increased minimum wage legislation. The net result for the year was a

surplus of just $28K, a decrease of $137K compared to 2017.

63%

24%13%

GROW THE GAMEINITIATIVES

EXPANDINGCAPACITY

HOW ARE MEMBER DUES USED?

INDUSTRY INTERACTION

HIGH PERFORMANCE& EXCELLENCE

1%

18 Golf Canada

The Audit & Risk Committee completes an annual review with management to ensure

that appropriate risk mitigation processes are in place to maximize utility of Golf

Canada’s resources with an acceptable level of risk inherent in our operations. The

principal risks above may differ from year to year; however, management ensures that

appropriate mitigation activities remain in place.

Golf in Canada is also indirectly impacted by macro-economic factors. The sport is

dependent upon discretionary recreation spending by consumers and corporations as

well as supply and demand relative to courses, ranges, facilities, and manufacturers. An

extended recession could materially affect golf in Canada and our operations. A decline

in the economic environment could impact disposable income that may have an adverse

impact on operating revenues through membership and would negatively impact our

partners, sponsors, and corporate supporters. Golf participation and rounds played

annually is also directly impacted by weather conditions from coast to coast.

FINANCIAL OUTLOOK AND OPPORTUNITIES

A new strategic plan for Golf Canada will be launched in 2019. Notwithstanding the

unfortunate timing of the capital markets decline just prior to our fiscal year-end, we

are proud of the results that we have recognized over the past three years. In 2018,

Golf Canada improved its net operating deficit by $603K and is committed to reducing

the annual operational deficit to zero by 2022, before amortization and investment

income. This will provide additional capital in our investment portfolio which will be

used to support the priorities inherent in our long-term strategic plan. In addition,

the added growth and sustainability will provide comfort that the component of our

Financial Mandate requiring at least $25M in investments will be achievable without

compromising programming or services.

Golf Canada has been fortunate to partner with some of Canada’s iconic brands in the

Royal Bank of Canada and Canadian Pacific Railway – these companies deserve to be

recognized for their generosity in support of Golf Canada’s programs, their impact on

the growth of the game and the respective legacy they are building for Canadian golf.

Additionally, the Golf Canada Foundation, their Board of Directors and their Trustees

should also be recognized. The Foundation continues to be a major contributor to Golf

Canada’s programming, predominantly, the Young Pro Program and National Training

Centre. In 2018, the Foundation contributed $1,306K (compared to $858K in 2017)

in scholarships and grants to many recipients in Canada. There are very few brands as

powerful as RBC and CP in Canada. Along with the Foundation, they are meaningful

partners to Golf Canada.

In 2019, Golf Canada will announce exciting enhancements to both of our professional

championships. The Hamilton Golf & Country Club (RBC Canadian Open) and Magna

Golf Club (CP Women’s Open) will host our National Open Championships. The City of

Hamilton is directing a significant contribution to Golf Canada over the next five-years

and new festivities to be announced as part of the 2019 RBC Canadian Open would

not be possible without their support. We are confident that these enhancements will

increase profitability of the events providing Golf Canada with additional resources to

augment programming and services.

Golf Canada is demonstrating with the help of our Provincial Association partners that

the revised membership model has earned interest and garnered acceptance amongst

facilities in Canada. A great portion of the past few years has been spent ensuring

a smooth transition of member facilities to the new suite of benefits. Management

remains optimistic on converting potential Golf Canada members from the vast

number of avid public players included amongst Canada’s 5.7M golfer population. The

focus in 2019 will begin to transition from club conversion to public player acquisition

with strong belief that the enhanced public player program will ultimately increase

participation, connection and revenues.

Golf Canada is committed to its Financial Mandate of operating on at least a breakeven

basis as well as maintaining its asset base over $25M. As the National Sport Federation,

more than ever, Golf Canada is committed to deliver on our mission and objectives.

Robert MacDonald FCPA, FCAChair, Audit & Risk Management Committee

December 8, 2018

Garrett Ball CPA, CAChief Financial Officer and Ethics Commissioner Golf Canada

INVESTMENTS

The Investment Policy Statement provides guidance for our investment decisions.

The portfolio comprises a combination of bond funds, equity funds and alternative

investment products. The investment mix is structured to produce the desired returns

to meet current and future liabilities, with a robust risk management system in place.

The Investment Committee and management obtain input on a regular basis from

Golf Canada’s professional advisors in making decisions relating to the portfolio. The

mandate of the Investment Committee includes a review of the portfolio holdings on a

quarterly or more frequent basis.

The inherent volatility of global investment markets is a principal risk of Golf Canada

and an appropriate mix of assets has been established to ensure long-term stability

in the income produced by the assets. The investment income from the portfolio

continues to be used and relied upon to contribute to the delivery of our various

programs and services. Management has identified the need to reduce dependency

on investment income to help achieve Golf Canada’s desired annual operating results

– breakeven or better. We expect volatility, but cannot predict the timing thereof,

therefore, Golf Canada maintains a conservative portfolio mix with an average return

target of 6% (net of fees) over a five-year period (2018 actual five-year average return:

4.8%; 2017 – 6.1%).

One component of the Financial Mandate set by the Board of Directors states that

Golf Canada must maintain a minimum market value of $25M in assets, consisting

of the investment portfolio, the Golf Canada Calgary Centre and any other income

producing assets, of which $10M must be in liquid holdings. As at October 31, 2018,

the investment portfolio balance itself was $24.2M (compared to $24.6M in 2017)

and the net book value of the Golf Canada Calgary Centre was approximately $1.4M.

Therefore, this component of the Financial Mandate has been met. Golf Canada is

committed to ensuring the restrictions remain satisfied going forward while also

strengthening Golf Canada’s fiscal responsibility.

During the final two months of our fiscal year, Golf Canada was affected by two of the

worst months in the capital markets over the last decade causing the Corporation to

recognize a deficit after amortization and investment income. Another component

of the Financial Mandate requires the Corporation to operate on a breakeven basis,

after amortization and investment income. As a result, this component of the Financial

Mandate was not met in 2018. The net result of investment income recognized during

the year was just $89K (0.36%), a significant decline of $1.6M compared to 2017 (7.20%).

PRINCIPAL RISKS OF THE CORPORATION

Golf Canada’s ability to deliver on the facets of our strategic plan may be affected by

risks and uncertainties. Management has implemented procedures to identify and

manage significant brand reputation, operational, regulatory and financial risks.

The following section describes the principal immediate risks and uncertainties that

have been identified that could have a material and adverse effect on the organization’s

financial mandate:

• A significant decrease in perceived lack of value in membership with Golf Canada or

that our membership benefits do not resonate with facilities and their members

• The loss of a major title sponsor, particularly Canadian Pacific Railway or the Royal

Bank of Canada. Alternatively, our authority as host organization of the LPGA Tour

and PGA TOUR events is withdrawn by either professional body

• A natural disaster at the Golf Canada Calgary Centre, Golf Canada head office,

professional championship host club, or significant security crisis at any event or

national championship

• Reliance on investment income in managing Golf Canada’s annual budget when

significant volatility in global investment markets could arise

• Lack of strategic success or financial results that fall materially short of budget and/

or the Board of Director’s Financial Mandate

43%

4% 5%9%

1%

12%

17%

9%

GOLF CANADACALGARY CENTRE(NET)

PROFESSIONALCHAMPIONSHIPS (NET)

SOURCES OF FUNDING (Average for 2017 – 2018)

AMATEURCHAMPIONSHIPS

GRASS ROOTS PROGRAMS

MEMBERSERVICES

HIGHPERFORMANCE

INVESTMENTINCOME

OTHER PROGRAMS & SERVICES


Independent Auditor’s Report

To the Members of Golf Canada We have audited the accompanying financial statements of Golf Canada, which comprise the statement of financial position as at October 31, 2018, and the statements of revenue and expenses, changes in net assets, and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian accounting standards for not-for-profit organizations and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Golf Canada as at October 31, 2018, and the results of its operations and its cash flows for the year then ended in accordance with Canadian accounting standards for not-for-profit organizations.

Other Matter The financial statements of Golf Canada for the year ended October 31, 2017 were audited by another auditor who expressed an unmodified opinion on those statements on December 8, 2017.

Chartered Professional Accountants, Licensed Public Accountants Burlington, Ontario December 13, 2018

Tel: 905 639 9500Fax: 905 633 4939 Toll-free: 888 236 2383 www.bdo.ca

BDO Canada LLP3115 Harvester Road, Suite 400 Burlington ON L7N 3N8 Canada

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms.

20 Golf Canada

Statement of Financial Position As at October 31

Commitments (Note 9) Contingency (Note 11)

(See accompanying notes to financial statements)

On behalf of the Board:

Robert MacDonald, FCPA, FCA, Director and Audit and Risk Management Committee Chair

Leslie Dunning, CPA, CMA President

Current AssetsAccounts Receivable and Prepaid Expenses $ 6,258,942 $ 2,803,262 Receivable from the Golf Canada Foundation (Note 12) 1,127,926 1,159,730

7,386,868 3,962,992

Investments (Note 3) 24,170,063 24,568,303 Capital Assets (Note 4) 1,627,629 1,732,697 Intangible Assets (Note 5) 169,351 231,795

$ 33,353,911 $ 30,495,787

LiabilitiesCurrent Liabilities

Bank Indebtedness (Note 6) $ 157,167 $ 910,610 Bank Facilities (Note 6) 1,260,000 500,000 Accounts Payable and Accrued Liabilities 5,206,267 1,656,738 Deferred Revenue 683,376 399,525

7,306,810 3,466,873

Net AssetsOperating 26,047,101 27,028,914

$ 33,353,911 $ 30,495,787

Assets 2018 2017


Statement of Changes in Net Assets Year ended October 31


Balance, beginning of year $ 27,028,914 $ 27,027,010 (Deficiency) / Excess of Revenues over Expenses (981,813) 1,904

Balance, end of year $ 26,047,101 $ 27,028,914

2018 2017

22 Golf Canada

Statement of Revenues and Expenses Year ended October 31

Sport Canada Funding (Note 7) Golf Canada Foundation (Note 12) (See accompanying notes to financial statements)

2018 2018 2018 2017 2017 2017Revenues Expenses Net Revenues Expenses Net

Member Services, Program Revenues and ExpensesMember Services $ 4,526,941 $ 1,979,262 $ 2,547,679 $ 3,901,682 $ 1,511,569 $ 2,390,113

Direct Program Revenues and ExpensesGrass Roots Programs 1,346,153 1,337,831 8,322 1,149,783 1,180,760 (30,977) High Performance 1,777,410 1,806,891 (29,481) 1,460,525 1,525,460 (64,935) Amateur Championships 854,378 1,097,741 (243,363) 884,307 1,064,794 (180,487) Other Programs and Services 348,825 385,120 (36,295) 371,955 430,134 (58,179)

Total Direct Program Revenues and Expenses 4,326,766 4,627,583 (300,817) 3,866,570 4,201,148 (334,578)

Program Support Revenues and ExpensesCommunications and Business Development - 1,090,052 (1,090,052) - 881,830 (881,830) Administration and Overhead (Note 8) 67,000 2,562,875 (2,495,875) 67,300 3,192,766 (3,125,466)

Total Program Support Revenues and Expenses 67,000 3,652,927 (3,585,927) 67,300 4,074,596 (4,007,296)

Total Member Services, Program Revenues and Expenses 8,920,707 10,259,772 (1,339,065) 7,835,552 9,787,313 (1,951,761)

Other OperationsProfessional Championships 29,278,667 28,740,671 537,996 27,469,976 27,058,960 411,016 Golf Canada Calgary Centre 1,534,898 1,506,910 27,988 1,548,735 1,384,228 164,507

Total Other Operations Revenues and Expenses 30,813,565 30,247,581 565,984 29,018,711 28,443,188 575,523

Net Operating Results $ 39,734,272 $ 40,507,353 $ (773,081) $ 36,854,263 $ 38,230,501 $ (1,376,238)

Investment Income and AmortizationTotal Investment Income (Note 3) 89,461 - 89,461 1,708,674 - 1,708,674 Amortization - 298,193 (298,193) - 330,532 (330,532)

(Deficiency) / Excess of Revenues over Expenses $ 39,823,733 $ 40,805,546 $ (981,813) $ 38,562,937 $ 38,561,033 $ 1,904


Statement of Cash Flows Year ended October 31


Increase / (Decrease) in Cash 2018 2017

Operating activities(Deficiency) / Excess of Revenues over Expenses $ (981,813) $ 1,904 Amortization of Capital Assets 217,963 222,214 Amortization of Intangible Assets 80,230 108,318 Decrease / (Increase) in Fair Value of Investments 525,104 (1,210,601)

(158,516) (878,165)

Net Change in Non-cash Working Capital Components Relating to Operations 409,505 813,807 250,989 (64,358)

Financing activityUse / (Repayment) of Bank Facilities 760,000 (470,000)

Investing activities(Purchase) / Redemption of Investments (net) (126,865) 588,714 Purchase of Capital Assets (112,895) (88,666) Purchase of Intangible Assets (17,786) (30,317)

(257,546) 469,731

Increase / (Decrease) in Bank Indebtedness, During the Year 753,443 (64,627) Bank Indebtedness, Beginning of Year (910,610) (845,983)

Bank Indebtedness, End of Year $ (157,167) $ (910,610)

24 Golf Canada

Notes to Financial Statements As at October 31, 2018

1. Nature of Operations The Royal Canadian Golf Association, operating as Golf Canada (the Corporation), is incorporated without share capital under the laws of Canada and is a Registered Canadian Amateur Athletic Association under the Income Tax Act (Canada). Golf Canada is the National Sport Federation and governing body for golf in Canada as designated by the Government of Canada (Sport Canada). The Corporation is exempt from income tax and is a registered charity in accordance with the Income Tax Act (Canada).

2. Summary of Significant Accounting Policies (a) Basis of presentation These financial statements have been prepared in accordance with Canadian accounting standards for not-for-profit organizations. Accounting standards for not-for-profit organizations require entities to select policies appropriate for their circumstances from choices provided in the specific standards in Part III of the CPA Canada Standards and Guidance. Each member of the Board of Directors of Golf Canada is also a member of the Golf Canada Foundation (the Foundation), a separate Registered Canadian Amateur Athletic Association that is exempt from income tax in Canada under the Income Tax Act (Canada). The Foundation’s mandate is to raise and grant funds for the advancement of golf in Canada. The Foundation’s results are not consolidated in these financial statements but have been disclosed in Note 12. (b) Use of estimates In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from these estimates as additional information becomes available in the future. Estimates and assumptions are used when accounting for items such as write-down of capital and intangible assets, determination of useful lives of capital and intangible assets, and accrued liabilities.

(c) Financial instruments The Corporation initially measures its financial assets and liabilities at fair value when acquired or issued. Subsequently, all financial instruments are measured at fair value or amortized cost with subsequent changes in fair value recognized in the Statement of Revenues and Expenses. Transaction costs on acquisition, sale or issue of financial instruments subsequently measured at fair value are expensed as incurred. Financial instruments that will not be subsequently measured at fair value are adjusted by the transaction costs that are directly attributable to their origination, issuance or redemption. Financial assets and liabilities measured at amortized cost include accounts receivable, receivable from the Golf Canada Foundation, accounts payable and accrued liabilities, deferred revenue, and certain investments that are not traded in active markets. Investments are measured at fair value where quoted prices are available from active markets, otherwise fair values are estimated using a variety of valuation techniques and models. Investment income includes interest, dividends, realized gains/(losses), and net change in unrealized gains/(losses) for the year, less counsel and custodian fees.



2. Summary of Significant Accounting Policies (Continued) (d) Capital assets and amortization Rates and bases of amortization applied to write-off the cost less estimated salvage value of capital assets over their estimated useful lives are as follows: Computer Equipment 50%, declining balance Leasehold Improvements Straight line over the term of the lease Furniture and Equipment 25%, declining balance Golf Canada Calgary Centre Straight line over remaining years of the lease options

(e) Intangible assets and amortization Intangible assets are initially recognized and measured at cost. Intangible assets with finite useful lives are amortized over their useful lives. The amortization methods and estimated useful lives of intangible assets are as follows: Website and Score Centre™ Development 33%, declining balance Customer Relationship Management System 33%, declining balance

(f) Revenue recognition Golf Canada follows the deferral method of accounting for contributions. Restricted contributions are recognized as revenue in the year in which the related expenses are incurred. Grants are recognized in revenue in the period for which the related expenses are incurred. Deferred revenue represents ticket and volunteer registration revenues relating to professional tournaments which have been received but not earned. Deferred revenue also includes cash received from government agencies for specified expenses and activities that will be incurred in the following fiscal year. Membership dues are recognized as revenue as fees become due. All other revenue is recognized upon completion of the particular tournament or event. (g) Donated services The work of Golf Canada is dependent on the services of many volunteers at amateur and professional events as well as governance Councils and Committees. Since these services are not normally purchased by Golf Canada and because of the difficulty of determining their fair value, donated services are not recorded in the Statement of Revenues and Expenses. (h) Impairment of long-lived assets When long-lived assets no longer have any long-term service potential to the Corporation, the excess of its net carrying amount over any residual value is recognized as an expense in the Statement of Revenue and Expenses. (i) Foreign currency translation Foreign currency accounts are translated to Canadian dollars as follows:

� At the transaction date, each asset, liability, revenue or expense is translated to Canadian dollars by the use of the exchange rate in effect at that date.

� At October 31, monetary assets are translated into Canadian dollars using the exchange rate in effect at that date.

The resulting foreign exchange gains and losses are recorded in the Statement of Revenues and Expenses.

26 Golf Canada


2. Summary of Significant Accounting Policies (Continued) (j) Financial instruments risk management

(i) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for another party failing to discharge its obligation. The Corporation is subject to credit risk through trade receivables. Credit risk is minimized by dealing primarily with companies with strong financial positions. Golf Canada maintains provisions for potential credit losses and any such losses to date have been within management’s expectations. There have been no changes in this risk from the prior year.

(ii) Currency risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Corporation conducts certain business in U.S. dollars and maintains a U.S. dollar bank account. At the statement of financial position date, Golf Canada held U.S. cash of $152,913 (2017 - $97,136) and had $229,985 (2017 - $590,762) in outstanding U.S. receivables. There have been no changes in this risk from the prior year.

(iii) Interest rate risk Interest rate risk the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Corporation is subject to interest rate risk through its bank facilities (Note 6) debt that bear interest based on the lender’s prime rate, which may vary from time to time. Certain of the Corporation’s investments (Note 3) are also subject to interest rate risk. Golf Canada manages this risk by investing in a diversified portfolio of assets in accordance with the Investment Policy Statement. There have been no changes in this risk from the prior year.

(iv) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Corporation is exposed to market fluctuations through its investments quoted in active markets. Market risk is the risk that the fair value of a financial instrument will fluctuate because of changes in those market prices, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the markets. The Investment Committee controls risk management of the portfolio by assigning a risk classification to each holding within the portfolio and ensuring that appropriate diversification exists, guided by the Investment Policy Statement. There have been no changes in this risk from the prior year.

(v) Liquidity risk Liquidity risk is the risk that the Corporation will encounter difficulty in meeting its obligations associated with financial liabilities. Liquidity risk includes the risk that, as a result of operational liquidity requirements, Golf Canada will not have sufficient funds to settle a transaction on the due date; will be forced to sell financial assets at a value, which is less than what they are worth; or may be unable to settle or recover a financial asset. Golf Canada is exposed to this risk mainly in respect of its accounts payable and accrued liabilities, bank facilities and commitments. Golf Canada manages this risk by maintaining a portion of its invested assets in liquid holdings. There have been no changes in this risk from the prior year.



3. Investments (i) Financial Mandate The Board upholds a Financial Mandate with the objective for the Corporation to operate on at least a breakeven basis, after amortization and investment income, and maintain a minimum market value of $25,000,000 in the portfolio (including the Golf Canada Calgary Centre or other income producing assets) of which a minimum of $10,000,000 must be in liquid holdings. In 2018, the Board enhanced the Financial Mandate by requiring that the Corporation is to operate on a breakeven basis, before amortization and investment income by 2022. The Financial Mandate was not met for the year ended, October 31, 2018, as the Corporation recognized a deficit after amortization and investment income.

(ii) Governance The investment objectives and portfolio mix are in accordance with Golf Canada’s Investment Policy Statement approved by the Board. A copy of the Corporation’s Investment Policy Statement is made publicly available on our external website, www.golfcanada.ca. The Investment Committee and management obtain input on a regular basis from Golf Canada’s professional advisors in making decisions relating to the portfolio. The portfolio’s assets include a diversified mix of income, equity, and alternative class investment funds. The mandate of the Investment Committee includes a review of the portfolio holdings on a regular basis. As at October 31, the assets of the portfolio were measured as follows:

(iii) Investment Income Investment income recognized in the Statement of Revenues and Expenses include the following:

4. Capital Assets

Investments Measured at Fair Value $ 22,639,606 $ 22,887,253Investments Measured at Amortized Cost 1,530,457 1,681,050

$ 24,170,063 $ 24,568,303

20172018

Distributions $ 614,566 $ 498,073 (Decrease) / Increase in Fair Value of Investments (525,105) 1,210,601

$ 89,461 $ 1,708,674

2018 2017

2017

CostAccumulated Amortization

Net Book Value

Net Book Value

Computer Equipment $ 709,570 $ 624,259 $ 85,311 $ 78,282Leasehold Improvements 724,767 452,942 271,825 284,487Furniture and Equipment 430,513 322,679 107,834 131,082Golf Canada Calgary Centre 4,123,307 2,960,648 1,162,659 1,238,846

$ 5,988,157 $ 4,360,528 $ 1,627,629 $ 1,732,697

2018

28 Golf Canada


5. Intangible Assets

6. Bank Indebtedness and Bank Facilities Bank indebtedness of $157,167 as at October 31, 2018 (2017 - $910,610) is comprised of $398,191 (2017 - $935,128) of outstanding payments that were more than Golf Canada’s bank account balances totaling $241,024 (2017 - $24,518). As at October 31, 2018, the Corporation has a revolving demand facility of $1,500,000. As security, Golf Canada has pledged a portion of the investment portfolio against this facility (“Facility 1(a)”). $1,260,000 of this Facility 1(a) was drawn on as at October 31, 2018 (2017 - $500,000). Golf Canada also maintains an additional $500,000 revolving demand facility (“Facility 1(b)”) that is only available from December 1 to April 30 inclusive in each year. Both facilities are due upon demand and bear interest at a rate of bank prime plus 0.75%, which equates to 4.70% at October 31, 2018 (2017 – 3.95%). As at October 31, 2018, the Corporation is compliant with all conditions and general covenants of the facilities.

7. Sport Canada Funding As the National Sport Federation (NSF) for golf in Canada, the Corporation receives funding from the Government of Canada through Sport Canada’s Sport Support Program to enhance and advance the Canadian Sport Policy. Funding is aimed at developing our athletes and coaches at the highest international levels; providing sound technically-based golf programming for all golfers; increasing the number of Canadians from all segments of society involved in golf; and advancing Canadian interests and values in Canada and abroad. Funding is granted on the basis of eligible expenditures that are incurred to contribute to the achievement of the objectives of the Canadian Sport Policy. Funding is provided annually throughout Sport Canada’s fiscal year (April 1 to March 31). Management estimates the amount of eligible expenses that are incurred during the Corporation’s fiscal year and recognizes revenue from Sport Canada’s fiscal funding on a pro-rata accrual basis. Revenue has been allocated to Direct Program and Program Support Revenues on a pro-rata basis of total eligible expenditures. During the Corporation’s fiscal year, a total of $912,250 (2017 - $783,000) was recognized from Sport Canada. Schedule A to these financial statements highlights the total cash funding provided by Sport Canada during their fiscal year ended, March 31, 2018 and the eligible expenditures incurred within the same Mainstream Program categories permitted by the Contribution Agreement for the Corporation’s fiscal year ended, October 31, 2018.

2017

CostAccumulated Amortization

Net Book Value

Net Book Value

Website and Score CentreTM Development $ 385,110 $ 242,918 $ 142,192 $ 191,056 Customer Relationship Management System 96,520 69,361 27,159 40,739

$ 481,630 $ 312,279 $ 169,351 $ 231,795

2018



8. Allocation of Administration and Overhead Expenses

During the year, Golf Canada incurred approximately $74,000 (2017 - $68,000) of administration and overhead expenses, on behalf of the Golf Canada Foundation. These expenses have not been charged to the Golf Canada Foundation.

9. Commitments The Corporation has entered into agreements to lease office and storage space (33% of the 2019 commitments), land for the Golf Canada Calgary Centre (44% of the 2019 commitments), office equipment, vehicles and machinery to various dates to 2024. Minimum annual payments under these lease agreements in aggregate and for the next five years and thereafter are due as follows:

10. Employee Pension Plan As part of its employee compensation plan, the Corporation offers a registered defined contribution pension plan for eligible employees. Through this defined contribution plan, the Corporation makes matching contributions of 6%, up to a maximum of $3,500, on behalf of each eligible employee. During the year, the Corporation contributed $137,144 (2017 - $123,156) on behalf of its eligible employees. The Corporation has no obligation in excess of the contributions discussed above, as it does not have any defined benefit retirement plans, nor does it provide any post-retirement medical benefits.

2017Building and IT Systems, Network and Applications $ 912,211 $ 968,698 Salaries, Benefits and Travel 1,357,402 1,152,173 Restructuring 22,363 838,202 Professional Fees, Insurance, and Bank Fees 377,827 424,276 Association Meetings 273,333 303,170 Postage, Courier and Other Costs 121,205 108,647 Net Tax Rebates, Recoveries and Donations (102,826) (229,363) Total Administration and Overhead Expenses 2,961,515 3,565,802

Allocation to Professional Championships (398,640) (373,036) Net Administration and Overhead Expenses $ 2,562,875 $ 3,192,766

2018

2019 $ 232,130 2020 132,002 2021 120,802 2022 120,802 2023 120,802 Thereafter 23,236 Total $ 749,774

30 Golf Canada


11. Contingency From time to time, the Corporation may be named as a defendant in claims that arise in the ordinary course of business. Although it is difficult to predict the outcome of any such legal actions or claims, based on current knowledge and consultation with legal counsel, management does not expect the outcome of any of these matters, individually or in aggregate, to have a material adverse effect on the Corporation’s financial position. Should any uninsured losses result from the resolution of open claims, such losses will be charged to operations in the year of resolution.

12. Golf Canada Foundation The Foundation was established to raise and grant funds for the advancement of golf in Canada. The Foundation delivers this mandate through Scholarships and Grants. During 2018, the Foundation awarded a total of $1,306,000 in scholarships and grants (2017 - $858,000). Foundation results have not been consolidated in Golf Canada’s Financial Statements. The only significant difference between the accounting policies followed by Golf Canada and the Foundation is that the Foundation follows the Restricted Fund method for accounting for contributions and Golf Canada follows the Deferral method. Financial Statements of the Golf Canada Foundation are posted publicly on their website, www.golfcanadafoundation.com. A summary of the audited financial statements of the Foundation as at October 31 and for the years then ended are as follows:

The Receivable from the Golf Canada Foundation is settled on a periodic basis. Transactions between the two entities consist of reimbursement of expenses paid on behalf of the Foundation, grants paid to support Golf Canada programming, and licensing of assets. A total of $808,085 (2017 - $726,210) has been recorded in the Statement of Revenue and Expenses as revenue from the Foundation.

13. Comparative Figures Certain of the comparative figures included in these financial statements have been reclassified to conform to the presentation adopted for the current year.

Financial PositionTotal Assets $ 2,894,750 $ 2,686,103 Total Liabilities 1,445,379 1,426,401

Total Net Assets $ 1,449,371 $ 1,259,702

Results of OperationsTotal Revenues $ 2,301,335 $ 1,647,404 (Loss) / Gain on Fair Value of Investments (30,915) 3,521 Total Expenses 2,080,751 1,525,542

Excess of Revenues over Expenses $ 189,669 $ 125,383

Cash FlowsCash (used in) / from from Operations $ (682,177) $ 148,815 Cash (used in) / from Investing Activity (32,735) 210,687 Cash from Financing Activity 190,845 63,272

(Decrease) / Increase in Cash $ (524,067) $ 422,774

2018 2017


Sport Canada Funding – Revenues and Expenses (unaudited) Year ended October 31

Schedule A

The following schedule highlights the total cash funding provided by Sport Canada during their fiscal year ending, March 31, 2018 under each of the mainstream contribution blocks of the Contribution Agreement signed between the two parties. Golf Canada recognizes Sport Canada’s funding on a pro-rata accrual basis while Schedule A represents the cash funding received from Sport Canada for the April 1, 2017 to March 31, 2018 Contribution Agreement. The total expenses presented represent the eligible expenditures incurred by the Corporation within each contribution block for Golf Canada’s fiscal year ended, October 31, 2018. The eligible total expenditures are presented within Direct Program Expenses and Program Support Expenses of the Statement of Revenues and Expenses, including the percentage of funding to expenditures.

Revenues and Expenses by CategoryGeneral Administration $ 67,350 $ 1,030,744 Governance 29,000 341,174 Salaries, Fees and Benefits 237,000 3,199,537 Coaching Salaries and Professional Development 53,000 639,862 National Team Program 88,150 1,275,029 Official Languages 12,000 127,502 Operations and Programming 187,000 2,142,037 Enhanced Excellence 130,000 130,000 Next Generation Initiative 108,750 108,750

Total Revenues and Expenses $ 912,250 $ 8,994,635

Expenses Incurred

Sport Canada Funding

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