About CMAA

The Club Managers Association of America is the professional Association for managers of membership clubs. CMAA has close to 7,000 members across all classifications. Manager members run more than 3,000 country, golf, city, athletic, faculty, yacht, town and military clubs. The objectives of the Association are to promote and advance friendly relations among persons connected with the management of clubs and other associations of similar character; to encourage the education and advancement of members; and to assist club officers and members, through their managers, to secure the utmost in efficient and successful operations. Learn more about CMAA at www.cmaa.org.

Club Managers Association of America 1733 King Street Alexandria, VA 22314 (703) 739-9500 www.cmaa.org

About HFTP

HFTP, based in Austin, Texas, USA was founded in 1952. It is the global professional association for financial and technology personnel working in hotels, clubs and other hospitality-related businesses. The association provides first class educational opportunities, research and publications to members around the globe including, the premiere hospitality technology conference HITEC founded in 1972. HFTP also awards the only hospitality specific certifications for accounting and technology the Certified Hospitality Accountant Executive (CHAE) and the Certified Hospitality Technology Professional (CHTP) designations. Learn more about HFTP at www.hftp.org.

HFTP 11709 Boulder Lane, Suite 110 Austin, TX 78726 (512) 249-5333 www.hftp.org

CMAA has worked to ensure that all information in this book is accurate as of the publication date and is consistent with good industry practices. It is recommended, however, that readers evaluate the applicability of this information in light of their work conditions, particular situations and changing standards. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Copyright 2012 by CMAA. All rights reserved. ISBN:1-889589-65-4

Disclaimer

Contents
Preface .....................................................................................................................................iii Committee Report ...................................................................................................................vii Part A SECTION 1 Basic Financial Statements .....................................................................................3 Statements of Financial Position Balance Sheet.....................................................................5 Statements of Activities Income Statement..........................................................................18 Notes to Financial Statements.................................................................................................25 Statements of Cash Flows .......................................................................................................23

Part B

Statements for CIRA Clubs .....................................................................................................26 SECTION 2 Statements of Activities Management Departmental Form ..............................33 Statements of Activities Country Club .................................................................................36 Statements of Revenues and Expenses CIRA Club .............................................................37 Schedule A Food ..................................................................................................................42 SECTION 3 Departmental Schedules Selected Detail ............................................................41 Schedule C Schedule D Schedule F Schedule E Schedule B Social Events.....................................................................................................57 Overnight Rooms ..............................................................................................62 Golf Course Maintenance ................................................................................77 Golf Shop ..........................................................................................................72 Golf Operations ................................................................................................67 Beverage ...........................................................................................................50 Statements of Activities City Club........................................................................................35

Schedule J

Schedule I

Schedule H Schedule K

Schedule G

Aquatic Sports ..................................................................................................92 Marina .............................................................................................................106 Locker Rooms .................................................................................................102

Racquet Shop....................................................................................................87

Racquet Sports .................................................................................................82

Schedule N

Schedule M

Schedule L

Fitness/Spa .......................................................................................................97

Special-Purpose Funds ...................................................................................110

C o n te n t s

Contents
Schedule O Information Technology ..................................................................................111

Schedule P Schedule S

Schedule R Schedule T

Schedule Q

Other Operating Departments ........................................................................115 Administrative and General ............................................................................122 Rentals and Other Revenue ............................................................................120 Clubhouse .......................................................................................................127

Schedule W Schedule Z Schedule Y Schedule X

Schedule V

Schedule U

Marketing and Membership...........................................................................132

Common Area Maintenance ...........................................................................145 Payroll Taxes and Employee Benefits............................................................158 Housekeeping .................................................................................................153 Fixed Charges.................................................................................................150

Security ...........................................................................................................141

Facility Maintenance and Energy...................................................................136

APPENDICES

Appendix C Appendix D Appendix E Appendix F Appendix I

Appendix B

Appendix A

Ratio Analysis and Statistics...........................................................................172

Financial Statement Formats ..........................................................................170

Common Interest Realty Associations ...........................................................165

Projections and Budgeting..............................................................................185

Appendix H Expense Dictionary ........................................................................................298

Appendix G Club Taxation..................................................................................................285

Illustrated Statements and Schedules ............................................................235

Sample Chart of Accounts ..............................................................................193

Accounting Best Practices for the USFRC .....................................................325

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Pref ace

clubs in the social life of our nation has long been recognized.

share the cost of providing and maintaining social and recreational facilities. The importance of

A club is a cooperative association of members with a common interest who band together to

its own atmosphere; and many different economic levels are evident. Clubs may be diverse in of providing recreational club facilities the clubs major reason for existence.

It is said all clubs are different. True, each attracts a slightly different membership; each has

these respects, but at the core of all club operations is dues income, imposed to share the cost A consistent relationship between income and expenses is just as essential in club operations

as in any other business. Club managers and officers are aware that when operating statistics of a use of such comparisons can assist management to achieve the best operating results and provide a sound financial structure to withstand changing economic conditions. This book represents more than nine decades of development in establishing a common club are available in a form sufficiently standardized for ready comparison with other clubs, the

tennis, riding and other types of clubs.

operations, minor variations in terminology will make it equally acceptable for yacht, beach,

language for club accounting. Although written specifically to cover country, city and CIRA club

accounting firms specializing in this field. Thus, a few words on the history of this book are in order. by the Chicago District Golf Association, which in 1918 published a booklet titled Standardized As early as 1915, an attempt was made to standardize the accounting systems of country clubs

The ideas on which the system was originally based were contributed by club managers and

systems for other industries. Among the most successful systems developed were the Uniform

Accounting System for Country Clubs. During the same period, work was being done on uniform

System of Accounts for Hotels (1926) and a system of standardized accounts for restaurants
classification of accounts for country clubs and city clubs that were to follow shortly.

(1927). The ideas evolved by these systems were used as far as practicable in the suggested The Club Managers Association of America (CMAA) was founded in 1927 and elected Colonel

C. G. Holden and Frank H. Murray as the first president and secretary, respectively. By 1932,

P r e fa c e

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these two gentlemen prepared a draft of the Suggested Classification of Accounts for Country decade passed before a similar booklet appeared for city clubs. Harry J. Fawcett was CMAA

Clubs. This material was reviewed and arranged for publication by Horwath & Horwath. Nearly a President in 1941 and enlisted the cooperation of John N. Horwath and George Podd of Horwath & Horwath in this undertaking. Thinking wider acceptance might accrue if this work were credited to actual club managers, they had the manuscript reviewed by a committee of well-known managers: Martin Henkel, E. Park Akin and George Jobe, the latter two being CMAA directors. The Only a relatively few mimeographed copies of the original edition were published. A rerun was

resulting booklet was titled Proposed Uniform System of Accounts for City Clubs and presented to CMAA for copyright during its 1942 convention as a closing gesture of Fawcetts presidency. scheduled, but the nations entry into World War II channeled energies elsewhere and nothing

further was done.

two standardized accounting booklets, one for country clubs and the other for town clubs. The

CMAA Board that the firm of Horwath & Horwath was prepared to draw up and present copies of

A decade later, Thomas C. McGaffey, Chairman of the Educational Committee, reported to the

project took two years, by which time it was decided to combine the two works as sections under

one cover. It was titled Uniform System of Accounts for Clubs and was first presented for sale at the 1954 CMAA Conference. The breadth of this books acceptance exhausted the supply of texts

in just over half the anticipated period.

mittee to review and recommend changes to the 1954 edition. This committee was composed of a York; and two CPAs whose firms specialized in club accounting, Joseph Nolin of Horwath & Horwath and Arthur Iredell of Harris, Kerr Forster & Company (now Pannell, Kerr, Forster). Philip publication of the First Revision in 1960 and the committee was dissolved. Stone of New York was designated chairman. The committees task was accomplished with the country club manager, Forest Davis of Connecticut; a city club manager, Richard Kirwan of New

In 1960, CMAA President Kenneth Meisnet appointed an ad hoc Uniform System Revision Com-

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In 1965, the committee was reactivated. Stone was again called upon to chair the committee and

Donoghue, CCM, and Laurice T. Bud Hall, CCM. In 1966, the committee was further expanded to vised edition in 1967. tinued in an advisory capacity. This committee updated the publication and issued the second reThirteen years elapsed before the CMAA Board of Directors requested that the third revised include Whitney Travis, CCM, a vice-chairman, and Lloyd G. Weber, CCM. Iredell and Nolin con-

the committeemen were CMAA members Henry Ogden Barbour, Jr., William Conner, Joseph J.

ick E. Shaner, CCM. The committee was ably assisted by John P. Jaeger, CPA, of Pannell Kerr zation of copy. The third revised edition was published in 1982.

Clarence C. Watson, CCM; John J. Black; Robert M. Broms, CCM; Paul C. Frederick; and Freder-

edition be published. The committee charged with managing the update comprised Chairman

Forster, who provided technical advice and whose firm provided many hours of typing and organiIn 1989, the CMAA Board of Directors requested that the fourth revised edition be published.

The committee charged with this task consisted of Chairman Brian Spaulding, CCM; Carl Bauer, J. OMeara of Pannell Kerr Forster served as the advisor to the committee and donated many hours of his time to coordinating and completing this project.

CCM; Michael Carabine; Robert James, CCM; George Poole, CCM; and Roger Ross, CCM. Patrick

requested that a fifth revised edition be published. During the drafting process, it became clear in reporting. The committee charged with this responsibility consisted of William (Skip) Harris,

In 1994, due to a number of changes in the professional literature, the CMAA Board of Directors

that the book dealt with more than the uniform system of accounts but rather with the total finan-

cial reporting of a club. The uniform system was merely the first step in establishing consistency

CCM, Chairman; Albert Armstrong, CCM; John Bill; Patricia Dinger, CPA; William Shonk, CCM; ing and editing this edition; their firm also provided the secretarial and organizational support committee stayed on task.

Robert Spindel, CCM; and Dianne Vogel. Michael F. Moore, CPA, and Kevin F. Reilly, CPA, both of PKF, served as technical advisors to the committee and donated innumerable hours to coordinat-

needed. Karen Miller of CMAA headquarters ably served as staff support and ensured that the

P r e fa c e

Pref ace
In 2001, the Boards of Directors of both CMAA and the Hospitality Financial and Technology Profes-

sionals (HFTP) requested that a sixth revised edition be published. In addition to updating statements extensive uniform account numbering system and illustrated financial statements.

and schedules, the committee formed for this revision has chosen to include an expense dictionary, an In 2010, the Boards of Directors of both CMAA and HFTP requested that a seventh edition be

published. In addition to updating statements and schedules, the committee formed has chosen to include Common Interest Realty Associations financial statements and schedules for new appenthree subcommittee chairs and the coordinator. The subcommittees were as follows: Club Managers
(chair) Ian D.N. Fetigan, CCM, CAM Wendy K. Zurstadt, CPA, CHAE, David M. Manglos, CPA, CHAE Paul Koojoolian, CHAE CAM (chair) Frank A. Agnello, Jr., CMA, CHAE

dices include types of clubs and best practices for clubs. The revision committee consisted of Controllers Consultants

Gavin J. Arsenault, CCM Jay DiPietro, CCM

CHAE, CHTP, CAM (chair) Raymond Cronin James J. Hankowski, CPA Steven A. Johnston, CA Richard A. OLeary,CPA Kevin F. Reilly, CPA, JD CAM Philip G. Newman, CPA, CIA

Leonard J. Bartello, CPA,

Richard A. Bruner, CCM, CCE Brian R. Kroh, CCM

Robert J. Crifasi, CCM, CCE, CPA Pasquale J. LaRocca, CCM, CCE

Mick Nissen, CCM, CHAE, CHTP Thomas G. Smith, CHAE Benjamin Peck, CCM, CHAE

Jerilyn Schnitzel, CHAE, CHTP, Mitchell L. Stump, CPA, PA Barry Symons Michael Watne Tammy Tassitano, CPA

Committee Coordinator: Raymond S. Schmidgall, CPA, CHAE

credited to the efforts of all of the individual committee members and advisors mentioned in this history. CMAA and HFTP are indebted to them for their dedication.

Although this edition is copyrighted by the Club Managers Association of America, it is to be

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Com mittee Repor t

To the Boards of Directors of the Club Managers Association of America and In order to update and expand the recommended standards for financial reporting by clubs, Several department schedules have been added including marina, special purpose funds, information technology, marketing and membership and common area maintenance.

Hospitality Financial and Technology Professionals:

you have requested we revise the Uniform System of Financial Reporting for Clubs. Several of the changes in this edition from the prior edition are as follows:

The titles of some departmental schedules have been revised to reflect current usage, keeping for house laundry. such as social events for entertainment, fitness/spa for health and fitness and house-

The uniform account numbering system has been greatly expanded to provide more ing the three digit number of the prior edition. This change is consistent with most An expense dictionary has been expanded to include more items to this edition of accounting personnel enabling greater compliance with this uniform system. the Uniform System. The committee believes this section will provide guidance to accounting systems.

guidance to users. The primary account in this edition uses a four digit number replac-

This edition includes financial statements for Common Interest Realty Associations vided in this edition.

(CIRA) as the committee believes many more CIRA clubs have been established since the sixth revised edition. An appendix that explains the various types of clubs is pro-

The ratio analysis and statistics appendix includes several additional ratios. The

committee believes these additional ratios will enable users of financial statements

A list of best accounting practices is new to the uniform system in this edition. The list is certainly not exhaustive.

to more clearly understand the financial position and operating results of each club. committee believes club executives should review their accounting procedures and

adapt the best practices discussed. Though there are several practices provided, the

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We appreciate the opportunity to be of service to both the Club Managers Association of Respectfully submitted, Leonard J. Bartello, CPA, CHAE, CHTP, CAM, Chair Raymond S. Schmidgall, CPA, CHAE, Committee Coordinator

America and the Hospitality Financial and Technology Professionals.

Ian D. N. Fetigan, CCM, CAM, Chair

Wendy K. Zurstadt, CPA, CHAE, CAM, Chair

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