A single-column income statement tells the board whether the club made or lost money. A departmental income statement tells it where. Most private clubs lay out their statements by department, in the style of the Uniform System of Financial Reporting for Clubs (USFRC). This guide walks through that format line by line, with a fictional club. Use the USFRC manual itself for exact line placement and account definitions.
The shape of the statement
- Membership dues at the top: the club's main source of operating revenue.
- Operated departments such as food and beverage, golf operations, racquets, fitness and pool, each shown as a net result.
- Cost centers such as golf course maintenance and the clubhouse, which have costs but little or no revenue.
- Undistributed operating expenses: general and administrative, sales and marketing if used, and property operation and maintenance.
- Net operating result, then fixed charges such as insurance, property taxes and interest, then depreciation. Capital activity is presented separately.
One department, line by line
Every department follows the same pattern: revenue − cost of sales = gross profit; gross profit − payroll and related − other expenses = departmental result.
Fictional example. Sample Club's food and beverage department for one month:
| F&B department (fictional) | Month | % of revenue |
|---|---|---|
| Food | $180,000 | 75.0% |
| Beverage | $60,000 | 25.0% |
| Total revenue | $240,000 | 100.0% |
| Cost of food | $63,000 | 35.0% of food |
| Cost of beverage | $15,000 | 25.0% of beverage |
| Gross profit | $162,000 | 67.5% |
| Payroll and related | $132,000 | 55.0% |
| Other expenses | $24,000 | 10.0% |
| Departmental result | $6,000 | 2.5% |
Two details matter. First, show each cost of sales percentage against its own revenue line (food cost against food revenue), not total revenue. Second, the departmental result comes before any share of clubhouse, administrative or maintenance costs. Those sit in the cost centers and undistributed lines, so you judge each department on what its manager controls.
How the departments roll up
Fictional example. Sample Club's annual summary, departments shown net:
| Sample Club, year (fictional) | Net |
|---|---|
| Membership dues | $7,340,000 |
| Food & beverage | −$190,000 |
| Golf operations | −$310,000 |
| Golf course maintenance | −$1,650,000 |
| Racquets and fitness | −$140,000 |
| Clubhouse | −$820,000 |
| General and administrative | −$1,460,000 |
| Property operation and maintenance | −$1,090,000 |
| Net operating result | $1,680,000 |
Read from the top, the summary shows how far dues go toward the cost of running the club. In this fictional year, $7,340,000 of dues covers the net cost of departments and the undistributed expenses. That leaves $1,680,000 before fixed charges and capital.
Common layout questions
- F&B minimum shortfall: put it on its own line, not in food revenue, so food cost reflects actual dining. See the country club food minimum guide.
- Service charges: decide whether they're revenue or a payroll offset and stay consistent. Confirm the treatment with your auditor.
- Payroll for shared staff: allocate by hours when staff work in more than one department, and write the rule down.
- Capital dues and assessments: keep them out of operating revenue.
Using the format in the budget
Build the budget in the same layout as the monthly statements, department by department. Then every monthly variance lines up with a budget line. It also makes the board package readable. The club board financial report guide shows how the pages fit together.