The American Club 2016/2017 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2017

12. CLUB FUNDS (cont’d)

(c) Renewal and Replacement Fund comprises accumulated entrance fees and investment earnings and losses. A portion of the Renewal and Replacement Fund earnings is being accumulated towards the eventual cost of major replacements at the Club and the remainder of earnings to be used for annual renewal and replacement expenditures. (d) Security Fund comprises a principal invested to generate earnings to be used for the additional security expenses The Club incurs due to its unique profile. (e) Legacy Fund comprises of the remainder of the Capital Fund not otherwise designated, including unrealised gains and losses on investment securities. Earnings from the Legacy Fund are being accumulated for future improvements and expansion and are available to fund annual maintenance upon the recommendation of the Finance Committee and approval of the General Committee. The basis of allocation among the various fund designations will be adjusted periodically in response to the prevailing market conditions for investments.

13. LEGACY FUND

Legacy Fund comprises:

Unrealised Other gain (loss) on legacy investment fund securities

Total

$

$

$

2017

At beginning of financial year

16,050,113

3,271,947

19,322,060

Legacy Fund drawn down for topping up of operating fund for prior years Legacy Fund drawn down for current year income tax expense Legacy Fund drawn for topping up of operating Fund

(49,667)

-

(49,667)

(162,930)

-

(162,930)

(5,049,061)

-

(5,049,061)

GC-approved expense

72,746

72,746

Net change in unrealised investment loss - (3,288, 091) (3,288,091) At end of financial year 10,861,201 (16,144) 10,845,057

2016

At beginning of financial year

18,621,393

21,322,514 39,943,907

Legacy Fund drawn down for current year income tax expense Legacy Fund drawn for topping up of operating Fund Net change in unrealised investment loss

(159,042)

-

(159,042)

(2,412,238)

-

(2,412,238)

- (18,050,567) (18,050,567) 16,050,113 3,271,947 19,322,060

At end of financial year

56 2016/17 ANNUAL REPORT