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TIN:
SCHEDULE O
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
(Form 990 or 990-EZ)
Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ
Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
Attach to Form 990 or 990-EZ.
Information about Schedule O (Form 990 or 990-EZ) and its instructions is atwww.irs.gov/form990.
OMB No. 1545-0047
2015
Open to Public
Inspection
Inspection
Name of the organization
WAIALAE COUNTRY CLUB
Employer identification number
99-0057829
99-0057829
| Return Reference | Explanation |
|---|---|
| Statements Regarding IRS Filings and Tax Compliance | Form 990 Part V Line 10 The Senate Finance Committee Report of 1976 states that 501(c)(7)s "be permitted to receive up to 35 percent of their gross receipts, including investment income, from sources outside of their membership without losing their tax-exempt status. It is intended that within this 35-percent amount not more than 15 percent of the gross receipts should be derived from the use of the social club's facilities or services by the general public..." From April 1, 2015 to November 30, 2015 Waialae Country Club directly operated their golf retail shop while searching for a suitable third party replacement to whom the golf retail shop would be leased. During these eight months, Waialae Country Club sold merchandise directly to members and nonmembers. The income generated from sales of merchandise to nonmembers were factored into nonmember revenue for UBTI purposes, which affects the 15% part of the 35%/15% test. In the past Waialae Country Club had always been in compliance with the 35%/15% test; however, due to this new source of nonmember income for the 2015 calendar year, Waialae Country Club exceeded the 15% test by 0.40%. Although Waialae Country Club exceeded the 15% limit for 2015, facts and circumstances indicate that "substantially all" of its activities are for "pleasure, recreation and other nonprofitable purposes". Waialae is well under the 35% gross receipts test, with only 19% of revenue generated from sources outside of membership. The frequency of use of Waialae Country Club by nonmembers has been consistent throughout the years. Nonmembers have limited access to Waialae Country Club's golf facilities but no access to other facilities, such as the Fitness Center and Swimming Pool. Waialae Country Club has never failed the 15% test until this year. This was due to a temporary situation, and as of December 1, 2015, the golf retail shop is once again being leased to a third party, and sales to nonmembers will no longer count towards nonmember income subject to the 35%/15% test. Based on these facts and circumstances, Waialae's 501(c)(7) status should remain unchanged. Governing Body and Management FORM 990 PART VI SECTION A Line 6 The organization has approximately 1,300 members and 31 different classes of membership. Regular, Limited, Senior Regular, Special Limited and Senior Special Limited member classes are entitled to: (1) Elect the members of the governing body; and (2) Approve significant decisions of the governing body. Regular, Limited, Senior Regular, Senior Limited, Ex-Resident Regular, Ex-Resident Limited, Ex-Resident Senior, Special Limited, and Senior Special Limited member classes who hold Transfer Certificates at the time the organization dissolves may be entitled to share in the organization's assets, if any. Line 7a Of the 1,300 total members, approximately 550 members may elect the governing body. Line 7b 1) Any expenditure or group of related expenditures in excess of $500,000 requires a majority vote of voting members. 2) Some of the decisions of the governing body regarding changes to by-laws and capital projects in excess of $500,000 may be subject to approval by the voting members. by-laws and capital projects in excess of $500,000 may be subject to approval by the voting members. |
| FORM 990 PART VI SECTION B | Line 11b The controller and general manager review the Form 990 prior to its filing with the IRS. THE FINANCE COMMITTEE RECEIVES THE RETURN AFTER IT HAS BEEN FILED. Line 12c The Executive Committee of the Board is charged with monitoring proposed or ongoing transactions for conflicts of interest and any actual conflicts are referred to the full Board of Directors for action. Any potential conflicts of interest are reported to the President. Pursuant to the Conflicts of Interest Policy, an annual conflict of interest statement, aimed at determining any family and business relationships and transactions or other transactions that may pose a potential conflict, is distributed to all covered persons (i.e., board members, officers, management, and all key employees). Covered persons are required to disclose real or potential conflicts at the time when such conflicts arise. When someone becomes a covered person and annually thereafter, each covered person is required to sign a statement affirming that he/she has no conflicts of interest as defined in the Club's Conflict of Interest Policy. The procedures for addressing any conflict of interest are determined on a case by case basis. Lines 15a & 15b The Managing Review Committee, comprised solely of independent members, none of which have a conflict of interest with respect to the compensation arrangement, is accountable for setting reasonable compensation packages for each officer or key employee (including the general manager). Yearly, the Managing Review Committee reviews the annual performance goals and criteria used in determining merit increases and variable compensation criteria for officers and key employees. The compensation committee met to retroactively determine the salary of Waialae's officers and key employees on 12/14/2014. Appropriate comparability data is obtained every few years from other clubs in the area, i.e., total economic benefits paid by similarly situated organizations (both taxable and tax-exempt) for similar job responsibilities and used in determining reasonable compensation. THE COMMITTEE'S WRITTEN RECORDS INCLUDE THE (1) TERMS OF THE salary adjustment and bonus of THE OFFICER OR KEY EMPLOYEE (INCLUDING THE DATE THE ARRANGEMENT WAS APPROVED); (2) A LIST OF MEMBERS PRESENT DURING THE VOTE ON THE TRANSACTION; and (3) A DESCRIPTION OF THE COMPARABLE DATA RELIED UPON BY THE COMMITTEE. Key deliberations and decisions of the Committee are documented in minutes which are approved at the next Committee meeting. The last comparability data was obtained and evaluated on 03/18/2015 by the Management Review Committee. |
| FORM 990 PART VI SECTION C | Line 19 The organization MAKES its governing documents, conflict of interest policy and financial statements available to the public, upon request. |
| FORM 990, PART XI, LINE 9 | $ (466,817) - OCCUPANCY ADJUSTMENT $ (121,835) - CONTRIBUTIONS $ 12,285 - SALE OF SECURITIES $ (719,021)- CHANGE IN ADJUSTMENT TO PENSION LIABILITY ----------- $(1,295,388) |
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2015
Additional Data
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