Annual Meeting Agenda 2024

Annual Report of the Chair, Board of Governors And the General and Special Committees 2024

The Club’s financial position remains positive, however a need to increase Capital Reserves persists. FY 2024 set an all-time record for operating revenue of just under $40M. As with FY 2023, FY 2024 saw increased demand across all Club Activities. Our Aquatics, Racquets, Golf and House & Entertainment all witnessed record demand and as such revenue. FY 2024 also saw the implementation of a waitlist for new Members for the first time in a generation. ANCC hit its Membership Cap of 2400 Resident Members. The Board instituted an equitable “first in, first out” approach to handling our waitlist while also allowing Absent Members to return to Resident Membership status without having to join the waitlist. Operationally, the Club continues to grow. However, as revenues grow, so do expenses. FY 2024 saw the largest single year increase in cost of goods sold and compensation expense across each Club activity. As noted, we ended FY 2024 with the largest top line in our Club’s 100-year history. Just as we did the year before in FY 2023. However, this evolving environment has presented our club with new challenges both financially and operationally. Our expenses continue to rise faster than the revenue we are generating. Wholesale food costs, utilities, labor, and insurance continue to go up and there is little we can do about that without significantly reducing our services. 1. The Consumer Price index dropped significantly in FY 2024 when compared to FY 2023. Gone were the days of 9%+ wholesale inflation as we saw in the second half of 2022. However, labor cost, food & beverage, golf course seed & chemicals, aquatics chemicals, utilities and insurance rates all saw cost increases. 2. On the Services side, our ability to hire additional staff was eased by the purchase of the Apartment Building. This purchase marked the first time in over 25 years that ANCC added to its land portfolio. Our new apartment building for employee housing has been a tremendous success. Our Club Management and this Committee estimate that approximately $12.00 per month in dues were saved as a result of acquiring the apartment building. As I noted last year, our Club, along with the rest of the nation, is experiencing a shortfall of available workers to fill all our staffing requirements. Despite strong recruitment initiatives, over 50 staff openings remain unfilled, of which ~30 are in the Food and Beverage restaurant operations areas. As was the case last summer, the total number of service-related job openings in Northern Virginia exceeds the total number of available potential applicants. The minimum wage for Virginia has been mandated to reach $15/hr statewide by 1 January 2026. Unfortunately, the Northern Virginia, Washington D.C., and immediate Maryland areas have become an outlier to that projected minimum wage glide slope. In our highly competitive employment environment, Northern Virginia employers have already raised the starting minimum wage levels being offered beyond $15/hr. Washington DC’s has (again) increased its minimum starting wage level to $16.10/hr, AMAZON, in Crystal City, is $18-20/hr, and MGM at National Harbor is at $22/hr and much of their staff is unionized. Audit: The auditing firm of PBMares, LLP concluded their audit of Army Navy Country Club as of 31 March 2024. In the opinion of the auditor, the financial statements were fairly presented, in all material respects are the financial position of Army Navy Country Club as of 31 March 2024, and the changes in its members’ equity and cash flows for the year ended are in accordance with the accounting principles generally accepted in the United States of America.

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