ANNUAL REPORT & FINANCIAL STATEMENTS

Transcription

1 WILDING PARK FOUNDATION INC. ANNUAL REPORT & FINANCIAL STATEMENTS Year ending 30th June 2016 This financial statement should be read in conjunction with the accompanied notes 1 P a g e

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3 TABLE OF CONTENTS TABLE OF CONTENTS CHAIRMAN S REPORT... 4 ENTITY INFORMATION... 8 STATEMENT OF SERVICE PERFORMANCE STATEMENT OF FINANCIAL PERFORMANCE STATEMENT OF CASHFLOWS STATEMENT OF ACCOUNTING POLICIES NOTES TO THE FINANCIAL STATEMENTS P a g e

4 CHAIRMAN S REPORT CHAIRMAN S ANNUAL REPORT The year to 30 June 2016 has been one of consolidation with regard to the redevelopment of Wilding Park as outlined in last year s annual report and the development of the Nga Puna Wai Sports Hub. In the financial year just ended there has been a substantial expenditure on an upgrade of the indoor tennis centre building and the adjacent administration building. Significant repairs to earthquake damage have been carried out to the indoor centre building and it has been strengthened so that it is now at least 67% of the New Building Standards. Although prior to those repairs being carried out the building complied with current building requirements it was significantly less than 67% NBS. The Board is now confident that the strengthening of the building and the other repairs which have been carried out (particularly to the roof) mean that the building is now fit for purpose for the foreseeable future. In addition, at the same time as the indoor centre works were carried out, the opportunity was taken to carry out some more minor earthquake repairs to the administration centre and carry out some long overdue renovations to the facilities in that building. The toilet and shower areas have been redecorated along with the upstairs lounge and the offices. This is the first refresh and renovation of this facility since it was built and was long overdue. The end result is pleasing and has made the facilities safer and much more user friendly. The Board is currently investigating the possibility of an upgrade to the lights in the indoor centre and a change from the current lighting to an LED lighting system. That is an expensive potential conversion and whether that work proceeds will probably be dependent on grants being available. The Board has also spent a significant amount of time in working towards the reinstatement of a further 6 outdoor courts together with re-landscaping the surrounds of the outdoor courts and the areas where the memorial stand and cafeteria building have been demolished as well as a tidy up and upgrade of the car parking areas. The plans for that work have been finalised and contracts have been let for the initial work involved in reinstating a further 6 courts in the area which includes the old centre court and the courts behind that to the boundary fence adjoining the courts already repaired. It is anticipated that work on that redevelopment will be well under way by the time of the annual meeting. The contemplation is that the bulk of that work will be completed by the end of November and this will then mean that Wilding Park will comprise a complex of 18 outdoor courts and 6 indoor courts together with the appropriate administrative and support facilities. As noted in last year s annual report this development will leave an area of surplus land to the east of the redeveloped courts. No decisions have been made as to the future of that area although some tidying up of it will occur as part of the current development. As previously advised, if any major decisions are to be made with regard to the use of that land particularly if it was thought appropriate to try to sell it then there would be further consultation with members before that occurred. There has been some interest expressed in the land by another sporting code but nothing concrete has yet eventuated. The 4 P a g e

5 CHAIRMAN S REPORT Board s energies have been heavily involved in the redevelopment of Wilding Park and the Nga Puna Wai development so it has not given any serious consideration to the future of the surplus land area or the houses which the Foundation still owns on the Wilding Park frontage. NGA PUNA WAI Since the last AGM the City Council has formally adopted the Nga Puna Wai development and allocated funds to it. There has been a huge amount of work put into this project by the City Council, its officers and outside advisors. There is now a substantial will to complete the project with the current intention being to have the athletics stadium completed by the end of It seems likely that in conjunction with that work the courts to be funded by the Foundation would also be laid so that they could well be available for use by late 2017 or early At this stage the Foundation has committed (although not legally as yet) to a contribution to fund the laying of an initial 12 outdoor courts. Further land would be made available to the Foundation in the future if and when it wishes to develop further outdoor courts and to build an indoor centre. As previously noted however stage 1 of the development will be relatively basic with the concentration being on the provision of playing surfaces not only for tennis but the other sports involved namely athletics, hockey and now rugby league. The development of further facilities at Nga Puna Wai is many years away which is why the Foundation in conjunction with TCRI has made the decision to ensure that Wilding Park is maintained for use at an appropriate standard until there can be future development at Nga Puna Wai. It is noted that last year there were two Davis Cup matches held in the indoor centre and Davis Cup is again to be played there in September The availability of these facilities accordingly does provide facilities for the enhancement of the tennis experience available to members and the wider public. At the AGM members will be asked to endorse the Board s intention to give a legal commitment to the Christchurch City Council as the initial developer of Nga Puna Wai to fund an amount of $1,250, (plus GST) if any to be utilised solely for the purposes of providing tennis facilities in the Nga Puna Wai Development. Significant work is still to be done on the business model and governance structures for Nga Puna Wai as well as ongoing work around the design of the total facility and in particular from the prospective of tennis for the future proofing of the tennis courts and the area available to tennis. With regard to the governance arrangements it is proposed that a new charitable trust will be formed which will have the responsibility of managing the facility going forward and owning the infrastructure assets including the tennis courts to be installed. Initially tennis will have a presence in the governance of that trust but over the next two or three years the governance will gradually change so that there will be a largely independent board responsible for the management of the Nga Puna Wai facility. Tennis and the other foundation sports will however have a role to play in the selection and appointment of board members. The funds to be contributed by Wilding Park will essentially be by way of payment to the Council and the governing body in exchange for which the Foundation and TCRI will acquire exclusive rights to use the courts for an indefinite period and upon terms otherwise to still be finalised between the Foundation, TCRI and the new governing body. Essentially therefore the Foundation will not own the courts although it will have funded their construction. However in exchange as noted the Foundation and TCRI will have exclusive rights to utilise the courts at agreed periods. There will be sufficient 5 P a g e

6 flexibility in the occupation rights agreement to ensure that tennis will always maintain sufficient access to the courts to meet its requirements as they may change in the future. Also as noted the occupation rights agreement arrangement will provide for the expansion of the number of tennis courts in the future and the erection of an indoor tennis centre at some point in the future when agreed by tennis and the Nga Puna Wai Charitable Trust. FUNDING The Christchurch Earthquake Appeal Trust had some years ago committed to making a grant of $1,403, plus GST to the Foundation for the purposes of the redevelopment of Wilding Park and/or the development of Nga Puna Wai. Of those funds $1,000, was to be advanced by Infratil Limited. The conditions of the CEAT grant have been satisfied although the grant has not yet been paid. It is expected that payment of CEAT grant will have been received by the time of the AGM. The Foundation for obvious reasons will not legally commit to the expenditure at Nga Puna Wai until the CEAT grant is under its control. The Foundation expresses and records its gratitude to CEAT for its funding and also its grateful thanks to Infratil for its magnificent $1,000, contribution. It should be noted that in exchange for that Infratil has been given naming rights at Wilding Park which has been called the Z Energy Wilding Park Tennis Centre for the last five years and discussions are ensuing with Infratil around the formalising of those arrangements. FINANCES The financial statements show an excess of expenses over payments of $560, That arises because of the accounting standards which require that the capital expenditure on repairs and reinstating the indoor centre and administration building of $680, have been treated as a revenue expense rather than a capital expense in the statement of financial performance. Although the deficit appears significant, that is simply a factor of the Foundation spending monies received from insurance or grants on reinstating facilities. Apart from those items of capital expenditure, standard revenue which comes basically from rentals and interest in the last year have been more than sufficient to cover normal outgoings and the Board considers the result as satisfactory. There are still significant costs to be incurred in completing the outdoor reinstatements at Wilding Park but the Board has adequate funding available to complete those works from the balance of the insurance pay outs and the CEAT grant. BOARD MEMBERSHIP Clive Davidson who has been a Board member for six years is not seeking re-election. I would like to extend my personal thanks and that of the Board to Clive for his contribution to the Board and his perceptiveness as to the Foundation s role, the developments in which it is involved and its general relationship with TCRI. The Board welcomes John Mander to the Board as the only nominee to succeed Clive. I would also record my thanks to the remainder of the Board over the last twelve months again for their efforts and diligence in attending to the Board s functions. There is little publicity attached to what the Foundation does and the contribution of all members is greatly appreciated. 6 P a g e

7 CHAIRMAN S REPORT I would also like to record the Board s thanks to Hamish Cain, the general manager of TCRI for his considerable contribution to the work of the Foundation. Although Hamish is supposed to work for TCRI he has spent a significant amount of time on Foundation affairs and is particularly heavily involved in the re-development work around Wilding Park and the planning for the new tennis courts and future development at Nga Puna Wai. L V North Chairman 7 P a g e

8 Statement of Service Performance WILDING PARK FOUNDATION INC. FINANCIAL STATEMENTS Year ending 30th June P a g e

9 ENTITY INFORMATION Entity Information ENTITY INFORMATION LEGAL NAME OF ENTITY: TYPE OF ENTITY AND LEGAL BASIS: is an Incorporated Society registered under the Incorporated Societies Act It is also registered as a charity under the Charities Act REGISTRATION NUMBER WITH DIA CHARITIES: CC41052 WILDING PARK FOUNDATION INC S PURPOSE / MISSION Mission Statement To own, hold and prudently manage assets for the playing and promotion of tennis in accordance with the Wilding Park Foundation Constitution. Entity Structure ("WPF") is an incorporated society focused on supporting tennis activities in Canterbury. It is also a registered charity. The Society is governed by a Board of Trustees comprising five members. The members of the governing body are as follows: L North Chairman G Holgate C Davidson P Maciaszek G Armstrong The Board of Trustees meet on a monthly basis. Main Sources of the Entity's Cash and Resources primary sources of funding are: Rental Income Interest Income Grants 9 P a g e

10 Statement of Service Performance STATEMENT OF SERVICE PERFORMANCE PURPOSE: The purpose of this statement is to identify the desired service performance to be achieved by the Wilding Park Foundation, in its activities pertaining to its role in owning and providing assets to be used in the promotion of tennis and the playing of tennis in Canterbury. THE POWERS OF WILDING PARK FOUNDATION ARE: a) To employ the assets of the Foundation in such manner as shall be deemed to be in the best interests of tennis in Canterbury and to invest the funds of the Foundation. b) To advance or lend money to TCRI or any club, sub association or associated body either with or without security and upon such terms and conditions as shall from time to time be deemed proper and expedient. c) To receive bequests, subscriptions and donations for approved specific or general purposes connected with tennis and to manage the same. d) To provide guarantees and securities for the performance by TCRI of the obligations of TCRI. e) To make grants of money to TCRI. f) To purchase, lease or otherwise acquire in any way any real or personal property and any rights or privileges which the Foundation may think necessary or appropriate. g) To acquire, construct, furnish and maintain any tennis courts, grounds, buildings or works necessary or appropriate for the purposes of the Foundation h) To raise money by subscriptions, levies or otherwise. i) To enter into any contracts, deeds or other agreements with any person, firm, syndicate, corporation or company that may to the Foundation appear conducive to the Foundation s objects. j) To borrow, raise, guarantee or secure the payment of money in such manner as the Foundation shall think fit and in particular by mortgage or charge, charged upon all or any of the Foundation s assets. k) To sell, improve, manage, use, develop, exchange, lease, license, mortgage, charge, dispose of or otherwise deal with all or any part of the property and rights of the Foundation. l) To appoint, remove or suspend any staff member and to direct and control such staff members and fix and pay their remuneration. m) To affiliate with any other body or association having as one of its objects directly or indirectly any of the objects of the Foundation. n) To frame rules and/or regulations for the carrying out of all or any of these Rules or objects of the Foundation. o) Such other power as may be necessary or desirable for the furtherance of the objects of the Foundation. 10 P a g e

11 STATEMENT OF SERVICE PERFORMANCE Statement of Service Performance STATUS OF POWERS: The Wilding Park Foundation is currently undertaking activities that are consistent with the stated Powers. The current strategic priorities relating to Financial Performance & Business Model Organisation Excellence & Change and Asset & Resource Management demonstrate that the Wilding Park Foundation is focused on achieving outcomes that are consistent with the overall theme of the Powers. STRATEGIC PLAN OUTCOMES 1. CEAT / INFRATIL Submission a. Submission and acceptance of CEAT / INFRATIL funding proposal. b. Ongoing communication Insurance proceeds, overall costs, spread of payment. c. Communication with INFRATIL. 2. Wilding Park Demolition a. Stage 1 Asbestos Removal b. Stage 2 - Demolition 3. Wilding Park Redevelopment a. Structural repairs to indoor centre b. Cosmetic enhancements to administration block. 4. Nga Puna Wai a. Finalise courts & design. b. Confirm occupation rights. c. Confirm governance and management model. 5. Sustainable Business Model a. Review, decide & execute. RESOURCING To achieve the Strategic Plan Outcomes, the Wilding Park Foundation will apply the following resources: CEAT funding Rental Property fees Facility lease fees SUSTAINABILITY To meet it s per year budgeted expenditure the Wilding Park Foundation will obtain revenue from the following or like sources: Grants Wilding Park lease fees Sponsorship revenue 11 P a g e

12 Statement of Service Performance ASSESSMENT OF PERFORMANCE In June of each year the Wilding Park Foundation will assess its performance for the year against the Strategic Plan Outcomes listed for the previous twelve months (July to June inclusive). This assessment will be used to identify specific and appropriate Strategic Plan Outcomes for the next twelve months. 12 P a g e

13 STATEMENT OF FINANCIAL PERFORMANCE Statement of Financial Performance STATEMENT OF FINANCIAL PERFORMANCE Notes Actual This Year Actual Last Year Revenue 1 Grants, Donations, Fundraising and other similar revenue Rental Income Interest received Other Revenue Total Revenue Expenses 2 Provisions of Goods and Services Grants and Donations Depreciation Depreciation Recovered (15) 0 Total Expenses Surplus/(Deficit) for the year (560) 56 This financial statement should be read in conjunction with the accompanied notes 13 P a g e

14 Statement of Financial Position STATEMENT OF FINANCIAL POSITION Notes Actual This Year Actual Last Year Assets Current Assets 3 Bank and Cash Debtors and Prepayments 12 8 Investments GST Refund 66 6 Other Current Assets 7 83 Total Current Assets Non Current Assets Property, Plant and Equipment Total Non Current Assets Total Assets Current Liabilities Creditors and Accruals Total Current Liabilities Net Assets Accumulated Funds 5 Accumulated Surplus Revaluation Reserves Total Accumulated Funds Signed: L North G Holgate Date: 14 P a g e This financial statement should be read in conjunction with the accompanied notes

15 STATEMENT OF FINANCIAL POSITION Statement of Cashflows STATEMENT OF CASHFLOWS Note Actual This Year Actual Last Year Cashflows from Operating Activities Cash was received from Donations, Grants and Sponsorship Rental Income Interest received Other income Net GST Total Cash was applied to Payments to Suppliers Donations or Grants Paid Total Net Cashflows from Operating Activities (523) 261 Cashflows from Investing and Financing Activities Cash was received from: Sale of Property, Plant & Equipment Disposal of Investments Total Cash was applied to Acquisition of property, plant and equipment Acquisition of Investments 0 59 Net Cashflows from investing and financing activities 731 (250) Net increase/(decrease) in cash Opening Cash Closing Cash This is represented by Bank and Cash This financial statement should be read in conjunction with the accompanied notes 15 P a g e

16 Statement of Accounting Policies STATEMENT OF ACCOUNTING POLICIES BASIS OF PREPARATION The Society has elected to apply PBE SFR-A (NFP) Public Benefit Entity Simple Format Reporting - Accrual (Not-For-Profit) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2,000,000 for the last two annual reporting periods. This is the first year of its adoption in light of the requirements of the Charities Act It previously followed NZ GAAP and the comparative numbers have not been restated. All transactions in the Performance Report are reported using the accrual basis of accounting. The Performance Report is prepared under the assumption that the Society will continue to operate as a going concern in the foreseeable future. REVENUE Revenue is accounted for as follows: Grants Grant income is accounted for depending on whether or not it has a "use or return" condition attached. Where no use or return conditions are attached, the revenue is recorded as income when the cash is received. Where income includes a use or return condition, it is initially recorded as a liability on receipt. The income is then subsequently recognised within the Statement of Financial Performance as the performance conditions are met. Interest income Interest income is recognised on an accruals basis. Other Income All other income is accounted for on an accruals basis and accounted for in accordance with the substance of the transaction. INCOME TAX WPF is a registered charity and therefore not subject to income tax. BANK AND CASH Bank and Cash in the Statement of Cash Flows comprise cash balances and bank balances (including short term deposits) with original maturities of 90 days or less. GOODS AND SERVICES TAX (GST) All amounts are recorded exclusive of GST, except for Debtors and Creditors which are stated inclusive of GST. DEBTORS Debtors are carried at estimated realisable value after providing against debts where collection is doubtful. 16 P a g e

17 STATEMENT OF ACCOUNTING POLICIES PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment are shown at cost or valuation less any accumulated depreciation and impairment losses. Statement of Accounting Policies DEPRECIATION Depreciation is provided on a straight-line basis on all property, plant and equipment, at rates that will write off the cost of the assets to their estimated residual values over their useful lives. The depreciation rates and useful lives associated with major classes of assets have been estimated as follows: Buildings Furniture and fittings Plant & equipment Indoor court surfaces Outdoor court surfaces Computer hardware 50 years 3 to 25 years 3 to 10 years 25 to 50 years 5 to 50 years 2 to 3 years PROVISIONS The Society 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, from which the probability that an outflow of future economic benefits will be required to settle the obligation and the ability to determine a reliable estimate of the amount of the obligation both exist. CHANGES IN ACCOUNTING POLICIES There have been no changes in accounting policies during the annual reporting period (last year - nil) other than noted above. 17 P a g e

18 Notes to the Financial Statements NOTES TO THE FINANCIAL STATEMENTS NOTE 1 ANALYSIS OF REVENUE Revenue from Investments Rental Income - Rental Properties - Indoor Tennis Centre Actual This Year Actual Last Year Interest Income Other Income - Gain on Sale of Property Other Total Income NOTE 2 ANALYSIS OF EXPENSES Actual This Year Actual Last Year Grant Tennis Canterbury Consulting & Audit Fees 8 38 Tennis Centre Redevelopment Insurance Rates Rental Property Management Fee Repairs & Maintenance Other Expenses Total Expenditure NOTE 3 ANALYSIS OF ASSETS AND LIABILITIES Assets Actual This Year Actual Last Year Cash & Deposits 8 24 Call Account Total Cash at Bank Investments Maturing Less Than 90 Days Investments Maturing After 90 Days 1,322 2,739 Total 2,454 2,763 Liabilities Trade Creditors 9 30 Accruals 4 0 Total P a g e

19 NOTES TO FINANCIAL STATEMENTS Notes to the Financial Statements NOTE 4 PROPERTY, PLANT AND EQUIPMENT This year Asset Class Opening Carrying Amount Purchases Sales / Disposals Current Year Depreciation and Impairment Closing Carrying Amount Land 2, ,990 Buildings Plant & Machinery Furniture & Fittings Admin/Indoor Facility 1, ,325 Outdoor Courts Work in Progress Total 4, ,306 Last year Asset Class Opening Carrying Amount Purchases Sales / Disposals Current Year Depreciation and Impairment Closing Carrying Amount Land 2, ,119 Buildings Plant & Machinery Furniture & Fittings Admin/Indoor Facility 1, ,352 Outdoor Courts Work in Progress Total 4, , P a g e

20 Notes to the Financial Statements NOTE 5 ACCUMULATED FUNDS This year Description Accumulated Surpluses or Deficits Reserves Total Opening Balance 5,762 1,630 7,392 Surplus/(Deficit) (560) 0 (560) Transfer to Reserves Transfer from Reserves Total 5,202 1,630 6,832 Last year Description Accumulated Surpluses or Deficits Reserves Total Opening Balance 5,706 1,630 7,336 Surplus/(Deficit) Transfer to Reserves Transfer from Reserves Total 5,762 1,630 7,392 BREAKDOWN OF RESERVES Name Revaluation Reserve Actual This Year Actual Last Year Nature & Purpose To reflect increasing value of the facility over time 1,630 1,630 NOTE 6 COMMITMENTS AND CONTINGENCIES In March of 2016, WPF entered into a contract with Arrow International Ltd to undertake the repair work and strengthening required from damage sustained by the Christchurch earthquakes. There is no contract price but a budget of $2m has been allowed. 20 P a g e

21 NOTES TO FINANCIAL STATEMENTS NOTE 7 RELATED PART TRANSACTIONS Description of Related Party Relationship Tennis Canterbury Region Inc Tennis Canterbury Region Inc Description of the Transaction Rent Received Grant Provided This Year Value of Transaction Last Year Value of Transaction Notes to the Financial Statements This Year Amount Outstanding Last Year Amount Outstanding NOTE 8 - EVENTS AFTER THE REPORTING DATE An agreement was entered into between The Christchurch Earthquake Appeal Trust (CEAT) and Wilding Park Foundation Incorporated (WPF) on the 10th of February 2015, whereby CEAT will provide a grant of $1,403,000 (exclusive of GST) towards the rebuild of the Wilding Park Tennis Centre. WPF were of the understanding that the conditions of the grant had been met during the year and incurred expenditure on the basis that it would be offset by the receipt of the grant. However, it was discovered that one condition of the grant was still to be met at year end and, therefore, the grant was not receivable in the current financial year. As a result of this, WPF has incurred a deficit of approximately $560,000. However, subsequent to balance date, WPF has confirmed that the final condition has been met and, therefore, the grant will be received during the 2017 financial year. (Last Year Nil) 21 P a g e