Venture taranaki annual report
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- Bu səhifədəki naviqasiya:
- RESPONSIBILITIES OF THE AUDITOR
- Total Assets
- Equity
- Total Comprehensive Revenue and Expenses
- Balance as at 1 July 2014
- Net cash flow from operating activities
- Net cash flow from investing activities
- Cash and cash equivalents at the beginning of the year
- Presentation currency and rounding
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27 The Board is responsible for such internal control as it determines is necessary to enable the preparation of financial statements and the performance information that are free from material misstatement, whether due to fraud or error. The Board is also responsible for the publication of the financial statements and the performance information, whether in printed or electronic form.
We are responsible for expressing an independent opinion on the financial statements and the performance information and reporting that opinion to you based on our audit. Our responsibility arises from section 15 of the Public Audit Act 2001, the Trust Deed, and section 69 of the Local Government Act 2002.
When carrying out the audit, we followed the independence requirements of the AuditorGeneral, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in the Trust. Clint Ramoo Audit New Zealand On behalf of the AuditorGeneral Wellington, New Zealand VENTURE TARANAKI ANNUAL REPORT 2015 28 VENTURE TARANAKI TRUST TRUSTEES’ REVIEW For the year ended 30 June 2015 The Board of Trustees present their Annual Report including financial statements and statement of service performance of the Trust for the year ended 30 June 2015. The business of the Trust is facilitating economic development in Taranaki. The nature of the Trust’s business has not changed during the year under review. For and on behalf of the Trustees ROBIN BROCKIE
VENTURE TARANAKI ANNUAL REPORT 2015 29 VENTURE TARANAKI TRUST STATEMENT OF FINANCIAL POSITION As at 30 June 2015 Notes
2015 $ 2014 $
Assets Current Assets Cash & cash equivalents 391,299 303,668
Trade and other receivables 86,334
32,231 Other current assets 42,396 39,493
GST receivable 45,901
80,138 Total Current Assets 565,930
455,530 Non Current Assets Property, plant & equipment 4 202,299
248,302 Intangibles 3 60,606
19,607 Total Non Current Assets 262,905
267,909 Total Assets 828,835
723,439 Liabilities Current Liabilities Trade and other payables 218,104 275,726
Funds held on behalf OGST 2,108
20,585 Employee benefit liabilities 8 93,220
101,461 Grants received in advance 189,722 -
503,154 397,772
Equity Trust equity 325,681 325,667
Total Liabilities & Equity 828,835
723,439
These financial statements were authorised for issue by the Trustees on 1 September 2015. ________________________Chairman ________________________Trustee The accompanying notes form part of these financial statements. VENTURE TARANAKI ANNUAL REPORT 2015 30 VENTURE TARANAKI TRUST STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSES For the year ended 30 June 2015 Notes
2015 $ 2014 $
Revenue Grant revenue Non-exchange 2 3,573,606 3,553,933 Other revenue Exchange 67,051
26,652 Interest income Exchange 29,563
31,661 Gain on disposal of assets Exchange 60 - Total Revenue 3,670,280 3,612,246
Audit fee 26,608 26,125
Amortisation 3 21,944 32,515 Depreciation 4 74,050
75,530 Marketing 491,434 546,990
Professional fees 195,589
226,195 Grants
947,663 936,436
Rental and operating lease expenses 141,933
140,331 Personnel costs 1,340,699 1,208,269 Trustees’ fees 62,715
73,334 Loss on disposal of assets - 3,632
Loss on foreign exchange 8 17 Other operating expenses 367,623
335,557 Total Expenses 3,670,266 3,604,931 Surplus before Tax 14 7,315
Income Tax Expense 5 - - Surplus after Taxation 14 7,315
Other Comprehensive Revenue and Expenses - - Total Comprehensive Revenue and Expenses 14 7,315 The accompanying notes form part of these financial statements. VENTURE TARANAKI ANNUAL REPORT 2015 31 VENTURE TARANAKI TRUST STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2015 Trust Equity $ Total Equity $
318,352
318,352 Total comprehensive revenue and expenses for the year 7,315 7,315
Balance at 30 June 2014 325,667
325,667 Balance as at 1 July 2014 325,667
325,667 Total comprehensive revenue and expenses for the year 14 14
325,681 325,681
The accompanying notes form part of these financial statements. VENTURE TARANAKI ANNUAL REPORT 2015 32 VENTURE TARANAKI TRUST STATEMENT OF CASH FLOWS For the year ended 30 June 2015 Notes
2015 $ 2014 $
Cash Flows from Operating Activities Grants and other income 3,762,748 3,616,291 Interest 29,990
36,168 Operating expenses (3,632,550) (3,614,218) Net GST movement 11 18,373 70,016 Net cash flow from operating activities 12 178,561 108,257 Cash Flows from Investing Activities Proceeds from sale of property, plant and equipment 221 88
(62,943) (2,510)
Purchase of property, plant and equipment (28,208)
(84,277) Net cash flow from investing activities (90,930)
(86,699) Cash Flows from Financing Activities Net cash flow from financing activities - -
87,631 21,558
Cash and cash equivalents at the beginning of the year 303,668
282,110 Cash and cash equivalents at the end of the year 391,299
303,668
VENTURE TARANAKI ANNUAL REPORT 2015 33 VENTURE TARANAKI TRUST NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2015 1. STATEMENT OF ACCOUNTING POLICIES REPORTING ENTITY Venture Taranaki Trust is a wholly owned subsidiary of New Plymouth District Council and is a Council Controlled Organisation as defined in Part 1 Section 6 of the Local Government Act 2002, and a Charitable Trust incorporated in New Zealand under a Trust Deed dated 27 May 1998 and is domiciled in New Zealand. The Trust commenced operations on 1 July 1998. The Trust has designated itself as a public benefit entity (PBE) for financial reporting purposes. The financial statements of the Trust are for the year ended 30 June 2015. The financial statements were authorised by the Board for issue on 1 September 2015.
The financial statements have been prepared on the going concern basis, and the accounting policies have been applied consistently throughout the period.
The financial statements of the Trust have been prepared in accordance with generally accepted accounting practice in New Zealand (NZ GAAP). The financial statements have been prepared in accordance with Tier 2 PBE accounting standards. The Trust qualifies for Tier 2 reporting on the basis that it is not publicly accountable and is not considered large under the PBE accounting standards. These financial statements comply with PBE Standards. These financial statements are the first financial statements presented in accordance with the new PBE accounting standards. There have been no material adjustments arising on transition to the new PBE accounting standards.
The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES • Revenue Revenue is measured at fair value. The specific accounting policies for significant revenue items are explained below:
Government grants Grants received from the New Plymouth District Council are the primary source of funding to the Trust and are restricted for the purposes of the Trust meeting its objectives as specified in the Trust’s trust deed. The Trust also receives other government assistance for specific purposes, and these grants usually contain restrictions on their use. Council, government, and non-government grants are recognised as non-exchange revenue when they become receivable unless there is an obligation to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.
Interest income is recognised using the effective interest method. • Foreign currency transactions Foreign currency transactions are translated into NZ$ (the functional currency) using the spot exchange rate at the date of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the surplus or deficit. • Leases – Operating Leases An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight line basis over the lease term. • Cash
Cash and cash equivalents include cash on hand and deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. • Receivables Trade and other receivables are initially measured at fair value and subsequently at fair value less any provision for impairment. The amount of impairment is the difference between the carrying amount of the receivable and the present value of the amounts expected to be collected which is determined on an analysis of the Trust’s losses in previous periods and review of specific debtors. All receivables are assessed as a non-exchange as these balances relate to grants to be received by the Trust from government entities. Loans and receivables Loans and receivables are non- derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the balance date, which are included in non-current assets. After initial recognition, they are measured at amortised cost, using the effective interest method, less impairment. Gains and losses when the asset is impaired or derecognised are recognised in the surplus or deficit.
VENTURE TARANAKI ANNUAL REPORT 2015 34 VENTURE TARANAKI TRUST NOTES TO THE FINANCIAL STATEMENTS CONTINUED For the year ended 30 June 2015 1. STATEMENT OF ACCOUNTING POLICIES CONTINUED Loans to community organisations made at nil or below-market interest rates are initially recognised at the present value of their expected future cash flows, discounted at the current market rate of return for a similar financial instrument. The difference between the face value and present value of the expected future cash flows of the loan is recognised in the surplus or deficit as a grant expense. The loans are subsequently measured at amortised cost using the effective interest method. • Impairment of financial assets Financial assets are assessed for evidence of impairment at each balance date. Impairment losses are recognised in the surplus or deficit. • Intangibles Software acquisition Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with development and improvements of the Venture Taranaki and Energy Stream websites are recognised as an asset when incurred as the websites generate future economic benefits. Amortisation Computer software licenses are amortised on a straight-line basis over their estimated useful life of two and a half years. Amortisation begins when the asset is available for use and ceases at the date when the asset is disposed of. The amortisation charge for each year is recognised in surplus or deficit. • Property, plant and equipment Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.
The cost of an item of property, plant, and equipment is recognised as an asset only when it is probable that service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. In most instances, an item of property, plant, and equipment is initially recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at its fair value when control over the asset is obtained.
Gains and losses on disposals are determined by comparing the disposal proceeds with the carrying amount of the asset. Gains and losses on disposals are presented net in the surplus or deficit.
Costs incurred subsequent to initial acquisition are capitalised only when it is probable that service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. The costs of day-to- day servicing of property, plant, and equipment are recognised as an expense as they are incurred. Depreciation Depreciation is provided on a straight line basis at rates calculated to allocate the assets cost less estimated residual value, over the estimated useful life of the asset. Major depreciation periods are: - Leasehold alterations 10 years - Fixtures and fittings 10 years
- Office equipment 3-10 years - Motor vehicles 3 years
- Other fixed assets 4-10 years The residual value and useful life of an asset are reviewed, and adjusted if applicable, at each financial year end. • Impairment of property, plant, and equipment and intangible assets Property, plant, and equipment and intangible assets are reviewed for indicators of impairment as at each balance date. When there is an indicator of impairment, the asset’s recoverable amount is estimated. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. • Payables Trade and other payables are stated at cost. Trade and other payables are non-interest bearing and are normally settled on 30 day terms, therefore the carrying value of trade and other payables approximates their fair value. All accounts payable are assessed as an exchange as these valances arose from transactions carried at normal business terms.
• Employee entitlements Short-term employee entitlements Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to but not yet taken at balance date, and sick leave. A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent that it will be used by staff to cover those future absences.
VENTURE TARANAKI ANNUAL REPORT 2015 35 Presentation of employee entitlements Sick leave, annual leave, and vested long service leave are classified as a current liability. Non-vested long service leave and retirement gratuities expected to be settled within 12 months of balance date are classified as a current liability. All other employee entitlements are classified as a non-current liability. • Provisions The Trust recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised in “finance costs”. • Goods and Services Tax (GST) All items in the financial statements are presented exclusive of goods and service tax (GST), except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax, then it is recognised as part of the related asset or expense. The net amount of GST recoverable from, or payable to, the IRD is included as part of receivables or payables in the statement of financial position. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as a net operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST. • Income Tax Income tax expense includes components relating to both current tax and deferred tax. Current tax is the amount of income tax payable based on the taxable profit for the current year, plus any adjustments to income tax payable in respect of prior years. Current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted at balance date. Deferred tax is the amount of income tax payable or recoverable in future periods in respect of temporary differences and unused tax losses. Temporary differences are differences between the carrying amount of assets and liabilities in the statement of financial position and the corresponding tax bases used in the computation of taxable profit. Deferred tax is measured at the tax rates that are expected to apply when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at balance date. The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the entity expects to recover or settle the carrying amount of its assets and liabilities. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences or tax losses can be utilised. Deferred tax is not recognised if the temporary difference arises from the initial recognition of goodwill or from the initial recognition of an asset or liability in a transaction that is not a business combination, and at the time of the transaction, affects neither accounting profit nor taxable profit. Current and deferred tax is recognised against the surplus or deficit for the period, except to the extent that it relates to a business combination, or to transactions recognised in other comprehensive revenue and expense or directly in equity. • Critical accounting estimates and assumptions In preparing these financial statements, estimates and assumptions have been made concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
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