will need to check which are used. 4. Finance


The cost using the money to purchase the machine also needs to be taken into account. The commonest is the interest rate at which the money is borrowed from a lending institution. An organisation may use funds not


borrowed from a bank, but there is always a cost associated with using this resource. For example, the money could have been left in an interest earning account which would be lost if used to spend in the organisation. Organisations will have their own method of calculating the cost of using internal funds and the turf manager will need to check with the accountant. Some of the information for fixed costs may not be available to the turf manager. However, you can be sure these costs will be taken into account by the people responsible for the financial well-being of the organisation.


So of what use are these figures to the turf manager?


It is vital that a manager presents alternatives to the facility owners. Just to present the costs of replacing a machine with a favourite model will almost always result in the proposal being sent back for resubmission. Alternatives for purchasing and owning machinery should be presented so that the owner has confidence that the manager is investigating the best value for the company. Alternative costs for different


options can be set out on a spreadsheet and the alternative methods to provide a machine can be compared (see example). I have included the four main alternatives for replacing equipment: 1. Repair and keep what you have - this may a viable option if finances are not available in the near future


2. Replace with used equipment - can be a cost effective alternative for budget golf courses


3. Replace with new equipment - the ideal alternative for the Superintendent but may not be the best option for the organisation


4. Hire as and when required - a viable option for equipment used infrequently, e.g. hollow corer or verti-drain


Each option will have its merits and relevance to individual facilities. The aim is to choose the best for the organisation, not just what suits the personal preferences of the turf manager.


Conclusion


Financial management is not the most favourite subject of turf managers. However, I believe it is vital to grasp a working knowledge of finance in order to influence the decision makers that can make it worthwhile for you to get up in


the


morning. Once the hard work of keeping good records has been set in place, the use of the figures will help any turf manager to get the machinery and equipment they need.


If you require a working copy of the above spreadsheet, please contact Andrew Turnbull, stating the Operating System on your computer, i.e. Windows XP™ or Vista™, through allturfman@ntlworld.com.


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