Blue Ensign granted 1894 Royal Title granted 1921

135th ANNUAL REPORT

&

STATEMENT OF ACCOUNTS

103 Oriental Parade PO Box 9674 Wellington

New Zealand

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Table of Contents Page 135th Annual General Meeting Agenda 3

Minutes of 134th Annual General Meeting held 28th June 2017 4

Annual Report for the year ended 31st March 2018 8

Commodore’s Report 9

Vice Commodore’s Report 12

Rear Commodore’s Report 13

Board Meeting Attendance 15

Membership Statistics 15

Financial Statements for the year ended 31st March 2018 16

Auditor’s Report 17

Statement of Financial Performance 19

Statement of Movements in Equity 20

Statement of Financial Position 21

Notes to the Financial Statements 22-27

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ROYAL PORT NICHOLSON YACHT CLUB (INC)

135th ANNUAL GENERAL MEETING

26 JUNE 2018 AT 1900 HOURS

IN THE ‘WARDROOM’

AGENDA

1. Apologies

2. Remembering those who have passed away

3. Confirmation of minutes of 134th AGM held on 19th June 2017

4. Annual Report

5. Election of Officers for 2018-2019 season

6. Notices of Motion

7. General Business

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Minutes of the 134th Annual General Meeting

19 June 2017 at 1900 hours in the RPNYC Wardroom

PRESENT: There were 62 members present. 62 were eligible for voting.

1. APOLOGIES: Peter Thorne George, Deb and Brent Dewhurst, Peter Mence, Philip Taylor, Del Hogg, Terry Christie, Chris Rutledge, Matt Perry, Tom Love. MOTION: THAT the apologies as received be accepted

MOVED: Ken Burt / Paul Atkins CARRIED

2. REMEMBERING THOSE WHO HAVE PASSED AWAY

Tributes and 1 minute silence were observed in honour of Alister Macalister, Jack Ayers and Brian Cardiff.

3. CONFIRMATION OF MINUTES OF 133rd ANNUAL GENERAL MEETING

MOTION: That the minutes of the 133rd Annual General Meeting, held on 28 June 2016 be accepted as a true and correct record:

MOVED: Mark Waters / Conny Rohr CARRIED

Matters arising from the Minutes:

Action from previous meeting: Club Manager to speak with Wellington City Council regarding safety messages or signage to prevent public from running on the shed rooftops.

This was raised with council and no observable action has been taken. However, as a safety related initiative the WCC did erect a fence around the Clyde Quay slipway.

4. ANNUAL REPORT

4.1 Commodores Report Mark Gordon spoke to the Commodores Report and Financial Statements.

Asset Management

During the annual report the Commodore called on Mike West, Board member holding asset management portfolio. Mike spoke to the continued maintenance of the club asset management plan following its establishment the previous year. Mike provided status on the approach and execution of club roofing projects and the status of earthquake strengthening projects. Mike emphasized the asset projects within the club will continue to require considerable attention to the detailed works required, priority setting and continued careful financial management.

During the report two questions were asked;

Question 1 regarding equipment onboard Caniwi (Te Ruru) safety boat being adequately prepared for incidents. VC Paul Atkins explained the preparedness of the boat and its current safety management system, including as inspected by Maritime NZ.

Question 2 regarding Caniwi & crew response to safety incidents during regatta. VC Paul Atkins advised that the recent collision during the regatta was part of an investigation underway including the pending appointment of an independent facilitator. The VC is unable to provide any further update to the

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membership and that the process underway would concern the investigation facilitator, the skipper(s) within the incident and any agencies involved in the response.

No further questions from the floor.

There was unnamed praise from the floor for the club financial position and state of club assets managed by the Flag Officers and wider RPNYC Board.

4.2 Vice Commodores Report Paul Atkins spoke to slides covering on-water participation, collaboration with Lowry Bay and Evans Bay yacht clubs, strengthening sailing safety incident management processes and volunteer contributions.

Question regarding Health and safety of club decking. Paul Atkins advised the decking, and wider Clyde Quay, now had additional warning signage from WCC. Paul Atkins added it was still every member responsibility to ensure they and their guests look out for the welfare of fellow members, their guests and passing public.

4.3 Rear Commodores Report The Rear Commodore Philippa Durkin spoke to the Rear Commodore’s report. No questions from the floor.

MOTION: THAT the 133rd

Annual Report and Statement of Accounts for the 2016-2017 year be accepted

MOVED: Arthur Stewart / Shirley Martin CARRIED

5. ELECTION OF OFFICERS

The Commodore advised the meeting that election of officers were conducted in accordance with club Rule 9.

5.1 Patron, President, Vice President The Commodore advised that club President Mr Arthur Stewart was stepping down after many years of service. Arthur was in attendance and was warmly thanked by the Flag Officers, Board and all members in attendance. PRESIDENT Honorary Life Member and past Commodore Mr Murray Bridge has agreed to be nominated as the Club President. The following people are nominated for the position of Patron, President and Vice President subject to their availability

Patron Governor General of New Zealand Dame Patsy Reddy President Murray Bridge Vice Presidents Chief Executive of Centreport Ltd Derek Nind Chairman of Centreport Ltd Lachie Johnstone Harbourmaster Wellington Regional Council Grant Nalder Mayor of Wellington Justin Lester Chief of Navy Rear Admiral John Martin Minister of Sport & Recreation Hon Jonathan Coleman Commodore Lowry Bay Yacht Club Gareth Edwards

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Commodore Evans Bay Yacht & Motor Boat Club Chris Hargreaves Commodore Worser Bay Boating Club Dean Stanley Commodore Mana Cruising Club Mike Quayle

MOTION: That the persons indicated be appointed to the positions to which they have been nominated; Moved: Mark Gordon / Chris Coad CARRIED 5.2 Flag Officers and Board of Governors Commander advised the following nominations were received in accordance with Club Rule 9.

Vice Commodore – 2 nominations, Craig Slack and Anthony Powell (Anthony subsequently withdrew) Board member – 1 nomination Cornelia Rohr Board member – 1 nomination Gavin Pascoe

In accordance with Rule 9 and where only one nomination exists, the Commodore declared that; Vice Commodore Craig Slack is elected to the position of Vice Commodore Board Member Cornelia Rohr and Gavin Pascoe are elected to position of Board member. The Commodore noted that in addition to the above, Board members Philip Gaunt and Joy Durrant continue their term with the club board. 5.3 Commodore, Rear Commodore and Racing Secretary A request for nominations was opened to the floor for position of Commodore. Murray Bridge nominated Pedro Morgan, who accepted the nomination. Commodore nomination for Pedro Morgan Murray Bridge / Paul Davies A request for nominations was opened to the floor for the position of Rear Commodore. Pedro Morgan nominated Katie Hakes, who accepted the nomination. Rear Commodore nomination for Katie Hakes Pedro Morgan / Dave Roberts A request for nominations was opened to the floor for position of Racing Secretary. Pedro Morgan nominated Anthony Powell, who accepted the nomination. Racing Secretary nomination for Anthony Powell Pedro Morgan / Conny Rohr MOTION: MOVE That the persons indicated be appointed to the positions to which they have been nominated Moved: Mark Gordon / Paul Atkins CARRIED

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5.4 Port Captains The following people are nominated for the position of Port Captains subject to their availability

Auckland to be confirmed Whitianga Brian Parker Tauranga Les McDonald Jnr Napier Mark Sheldrake Nelson Doug McKee Picton Peter Thorne-George Christchurch Peter Spackman

MOTION:

MOVE That the persons indicated be appointed to the positions to which they have been nominated Moved: Mark Gordon / Kim McMorran CARRIED

5.5 Honorary Solicitor and Club Auditor

MOTION: MOVE That Michael Gallagher is reappointed as the club’s honorary solicitor Moved: Mark Gordon / Ken Burt CARRIED MOTION: MOVE That Kevin Newson is reappointed as the club auditor Moved: Andrew Morrison / Paul Atkins CARRIED Notice of Motion No notices of motion.

General Business

Murray Bridge thanked Commodore Mark Gordon, Vice Commodore Paul Atkins, and all Board members for an excellent term of service running a tight ship.

AGM closed: 20:31pm

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ROYAL PORT NICHOLSON YACHT CLUB (INC)

ANNUAL REPORT

FOR THE YEAR ENDED 31 MARCH 2018

1. Commodore’s Report

2. Vice Commodore’s Report

3. Rear Commodore’s Report

4. Board Meeting Attendance

5. Membership Statistics

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Message from the Commodore

The 2017-18 season and financial year have ended with the club in good financial shape, but with work to do in other areas.

I’d like to highlight some of the successes of the past year and identify areas where I see scope for improvement.

Key financial results

The financial year ended 31 March 2018 has again seen the Royal Port Nicholson Yacht Club build towards greater financial stability. We have seen the year end in surplus and are budgeting a surplus for the next financial year as well.

The headline result for the year is again positive. After depreciation, the audited accounts show a surplus of $11,717 for the year, down from a $102,786 surplus in 2016-17. This difference mostly results from a $60k increase in repairs and maintenance (relating to our new roof) and a reduction in grant funding for Wellington Ocean Sports’ safe boating programme.

Revenue from the lease of Coene’s through Wellington Hospitality Group and the outsourcing arrangement for the food & beverage services delivered by Black & Gold Events from the Wardroom has increased by 4.5% to $202,891 for the period. This revenue is vital for the Club and its continued viability.

Both revenue and expenses at the Wellington Ocean Sports Centre fell, with a modest deficit of $10,081 recorded. While this was a disappointing result compared to last year’ $29,083 surplus, last year’s result was somewhat of an anomaly and this year’s result is more consistent with WOS’s normal performance.

Revenue from memberships totaled $104,416, down about $4k from last year. There has been yet another small decline in our total number of members compared to the same time last year. I will address the changes in membership numbers later in this report.

Repairs and maintenance

We have continued to improve our assets, with significant investment in the Club house roof, a new engine for Port Nic 1, new sails, security improvements, a new Boardroom table, and many other smaller investments. I’m pleased to report that we have recently received a grant to allow the replacement of Port Nic 2’s engine.

Sponsors and supporters

Board member Conny Rohr and Regatta Director Susie Pierce deserve special mention for their revitalization of the Club’s sponsorship programme. While it’s still early days, their success has been seen in an improved prize pool and a positive financial result for the regatta.

I’m sure you’ll join me in thanking our sponsors: Black and Gold, Fortune Favours, Crombie Lockwood, Stellar Consulting, Morrison Mallet, North Sails, Chris Coad, Seaview Sails and Rigging, Mount Gay, Whittakers Chocolate, Havana Coffee, Inlucem, Live Sail Die, The Apple Guy, Barton Marine, McKenzie Willis, Ray White, Accor Hotels, Burnsco, McMorran Boat Builders, Hancocks Wines and Spirits Motel Bar.

Wellington Ocean Sports

We were sad to lose WOS Manager Phillipa Durkin this year. Phillipa had been in the role for about 18 months, and in that time had done a great deal of work to reduce costs and to eliminate activities which weren’t contributing to WOS’s education, safety, or social goals. We wish her the very best for the future.

However, we were very pleased to welcome Craig Ryburn into the Manager’s role in early June. Craig has a long sailing background, and has previously worked for WOS and YNZ (as an instructor) and for a Caribbean sailing programme (in both sailing and management roles).

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We have established a management committee for WOS to support Craig (who will continue to report directly to the Board). I’m pleased to report that John Floyd has agreed to chair the new committee, and Bob McVeagh has agreed to sit on the committee along with Craig Slack and myself.

After developing terms of reference, Craig and the Committee will prepare a strategic plan and business plan for WOS, to be in place ahead of the new sailing season.

I have asked WOS to take over the management of Caniwi. Previously the responsibility of the Sailing Committee, Caniwi will now benefit from the same professional management that our two Muir 8.2m training boats enjoy. I hope that this will also result in new training opportunities for Caniwi’s regular crew.

Health & safety

We are committed to ensuring the Royal Port Nicholson Yacht Club is a safe organisation for everyone: our members, employees, volunteers, clients and the public alike. Our Health & Safety Committee, under the leadership of Board member Joy Durrant, has continued to monitor and respond to health and safety issues.

Membership

I believe that our major focus for the year ahead needs to be members and membership.

By members, I mean the need to document and enhance the benefits of belonging to the Royal Port Nicholson Yacht Club.

By membership, I mean the need to recruit and retain members more effectively than we have been and to entice the non-members who use our facilities to join.

I’m pleased to report that new Board member Paul Davies has agreed to lead this work.

Growing our membership is an area where all members can directly assist. It’s the small things that can help e.g. making sure your fellow crew are all members, encouraging friends and colleagues to come down to the Wardroom and to come out for a race, promoting the sport and club within your company, etc.. Growing our membership is an opportunity where everyone can contribute.

Earthquake strengthening

There is no avoiding the need to strengthen the Club house: this is a legal obligation which will only become more expensive to meet as time passes. If you haven’t already, please familiarise yourself with the proposals being put to the AGM, and remain engaged with the issue as we work towards a final strengthening proposal.

This is work that the Board has the authority to advance without the involvement of members: but that would be wrong. It is vital that members are involved in and support the final decision to strengthen the Club house.

The opportunities and challenges ahead

Ensuring the continued partnership with the Wellington Hospitality Group and the Club is a key objective for the future. While the club is grateful for the support we receive from community grant funders, continuing to reduce our reliance on this funding is also a key driver for the future.

Finally, I’d like to thank our staff and volunteers for their contribution this year.

Members rarely see the true contribution that Jason and Marcia make in the office. They keep an important part of the Club running, and leave our volunteers to focus on what is most important to us: sailing and social.

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Craig Ryburn and his team at WOS are a professional and dedicated group who deliver enormous value for those who use WOS’s programmes. I had the privilege of sitting through part of a school programme earlier this year, and I was astounded at the quality of the education and experience that the students were receiving.

And to the Board, thank you for your support and your continuing commitment to the success of the Club. The year ahead will be busy, and while I don’t apologise for that, I thank you in advance for continuing to help lead the Club.

Pedro Morgan Commodore

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Message from the Vice Commodore

It seems like yesterday that we were in the Wardroom at half past silly o’clock daring to hope that ETNZ

could get the job done this time. The boys brought the cup home and we were lucky enough to get a

good close look at it in the wardroom. It was a real lift for the members to rub shoulders with the victors.

When I took on the role of Vice Commodore I was lucky enough to inherit a season plan for 2017/18 that

was 95% ready to go from the sailing committee and outgoing VC. Thanks to that we just had to pull the

trigger and get on the water. I think this season we covered a few more corners of the harbour than we

have recently. The interclub series was a great success, it was with more boats on the start line every

week. The overall feeling from feedback was that the calendar was good but needed some tinkering. The

current sailing committee is working away in the background with the other keelboat clubs trying to go

one better for next year without losing what has been gained. We had good participation in the offshore

series with four races sailed including the trip to Lyttleton. RPNYC sailors have also been off around the

world representing us. Blink Raced in the Auckland to Noumea race, and finished 2nd on PHRF, 3rd on IRC

and 4th on line. A team of ladies went to Melbourne and sailed in the Australian Women’s Keelboat

Nationals this month. Well done to both teams!

The annual Port Nicholson Regatta this year got a shake up, with the Skippers’ dinner and guest speaker

being a great innovation. The Friday AM sponsors’ race is going to pay off in the long run, with

relationships being formed between the club and our sponsors. We have already had sponsor interest for

2019 from companies wanting to come on board. We managed to get two busy days of racing as the

forecasted blowout did eventuate, cancelling sailing on day three.

Safety needs to be a key part of our thinking every time we get out on the water. We need to be always

looking after each other when we are out sailing and keep an eye on our competitors just in case they

need assistance. The provision and maintenance of Caniwi is a big part of how RPNYC looks after

everyone’s safety on the water. The upskilling of the volunteers who crew her every week is ongoing and

key to the successful running of harbour racing at RPNYC. The sailing committee is currently going

through the process of applying for the YNZ MOSS exemption system so that we will be compliant with

Maritime NZ requirements for rescue boats. The systems we have in place at present are robust but

having an outside audit once a year should give everyone peace of mind that we are complying with

current best practice.

Finally, I would like to thank the volunteers who turn up regularly to run the races every week. Part of this

is the back-room team of volunteers doing all the stuff I knew nothing about before taking on the role of

Vice Commodore at RPNYC. Without the work they all do, there would be no sailing and RPNYC would

cease to exist. I am committed to developing a larger team of skilled people with the sailing secretary, so

that this is not a burden on the usual suspects.

Personally, I’m looking forward to the Evolution Sails 2018 winter series kicking off on the 1st of July with

the invitation Navy Cup.

Hopefully I will see you on the water!

Craig Slack

Vice Commodore

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Message from the Rear Commodore

Wow what a year it has been!

This has been my first year as Rear Commodore of RPNYC. My aim, as with the other flag officers, has been to encourage more members to be involved with their club, to help regenerate the club spirit and to see more faces around the wardroom. With the Social Committee and your ideas from the planning day we set to provide a social programme for both sailing and non-sailing members.

I set the bar pretty high for my first event, as I managed to secure Emirates Team New Zealand and their newly acquired America’s Cup to hold their post Victory Parade shindig at the club. This was able to happen thanks to Nicci Wood, so huge thanks to Nicci for helping me land that. I still brag that I’ve touched and held the America’s Cup!

Next up was the Champagne Brunch which we inherited. We ended up shifting this out to September, so our guest speakers could finish taking their trophies on a tour of New Zealand. A huge thank you to Josh Junior and Matt Hibberd for providing some insights into the world of the America’s Cup.

The Social Committee and I then set about taking all your ideas from the planning day and designing a social programme around it. The plan was to set events for an entire year so you the members could plan what things you wanted to attend and plan your lives accordingly. We managed to put into the social calendar everything that came out of the planning day and more.

One of the things that kept coming up before and during my time as rear was the choice of wine available in the club. So, your social committee along with Black & Gold thought, well we can fix that and invited you to attend a wine tasting with a difference, you the members helped decide what went onto the new Wine list and I’m pleased to announce our voice was heard and the new wine list is up and running.

Some of the events we ran pre Xmas were: annual working bee, Beer Tasting, Kids Christmas Party, Members Christmas Party, Sailing quiz and of course Opening Day. The Kids Christmas party was a roaring success and Kate is busy planning this year’s event to grow on what we started last year for our youngest members (though some of the parents enjoyed the remote controlled yachts more than the kids). The sailing quiz was all about the rules. We should all know them and this event proved that we are all a little rusty when it comes to these. I’m pretty sure all who attended learnt at least one new rule. A massive thank you to Dave Roberts & Janine Small for designing and presenting this event.

The New Year saw us start with a talk from our very own Alex Hare telling us all about the Clipper Around the World Race.

Next we went into full regatta mode. The regatta committee took a huge brave step and flipped our normal format on its head. Some things worked and some things didn’t but I can tell you a lot of hard work went into this. I want to thank the regatta committee for your hard work and dedication. I know at times it feels like no one cares but I assure we do!

The Ron Holland Book Launch, Quiz night, Wahine Talk, Ethel Trophy Bar Staff Rum Race, Movie Night and Race Management 101 were up next and while some of these events worked well some didn’t. It is extremely hard to run these events without bookings being made and I encourage you all to book early for these events to make sure we have the numbers to run them.

Now to my thank you…..

Thank you to Jason, Marcia in the office and Annette and the Black and Gold team. All your support and help you have given the social committee this year is amazing. Without your help, sponsorship and expertise most of these events would have seriously sucked and I may not have a job next season as Rear without you!!

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Lastly thank you to my social committee Irene Muirhead, Jamie Meyer & Kate Beckett. Your dedication is much appreciated and thank you for putting up with me and my last minuteness this year.

The social side of the club can only happen if you the members turn up to the organised events. If there is an event that interests you then let me know and we will do our best to fit it in. I can’t make this club great without you, so if there are any members keen to join our social committee please get in touch. Many hands make light work.

Katie Hakes Rear Commodore

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BOARD MEETING ATTENDANCE

Position Name Meetings attended

Meetings eligible to attend

Commodore Pedro Morgan 11 11 Vice Commodore Craig Slack 10 11 Rear Commodore Kaite Hakes 10 11

Board Member Gavin Pascoe 10 11 Board Member Philip Gaunt 9 11 Board Member Connie Rohr 8 11 Board Member Joy Durrant 8 11

MEMBERSHIP STATISTICS Membership 2016 2017 2018 Family 2 4 6 Family Associate 2 4 6 Family Junior 2 5 8 General 108 110 94 Honorary 20 15 26 Junior (inc Yth Scheme) 34 30 28 Life 15 15 13 Overseas 16 11 14 Patron 1 1 1 Senior 283 283 247 Special Life 1 1 1 Student 8 9 8 Veteran 56 53 55 Vice President 10 10 10 Total 558 551 517

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ROYAL PORT NICHOLSON YACHT CLUB (INC)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

1. Auditors Report

2. Statement of Financial Performance

3. Statement of Movements in Equity

4. Statement of Financial Position

5. Notes to the Financial Statements

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ROYAL PORT NICHOLSON YACHT CLUB (INC) Statement of Financial Performance For the Year Ended 31 March 2018 2018 2017 Note $ $ Income Wellington Ocean Sports Centre 2 182,612 270,084 Club Events 3 13,054 6,896 Club Racing 4 9,435 8,252 Club Facilities Income 5 210,027 201,067 Subscriptions 1d 104,416 108,372 Other Income 6 58,082 54,135 Total Income

-------------577,626

-------------648,806

-------------- -------------- Expenses Wellington Ocean Sports Centre 2 192,693 241,000 Club Events 3 12,475 7,782 Club Racing 4 15,002 14,624 Club Personnel 106,444 106,034 Club Administration 223,002 162,653 -------------- -------------- Total Expenses 549,616 532,093 -------------- -------------- Net Operating Surplus before depreciation 28,010 116,713 Less Depreciation 1b (16,293) (13,927) -------------- -------------- Net Operating Surplus 11,717 102,786 -------------- --------------

The accompanying notes form part of and are to be read in conjunction with the financial statements.

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ROYAL PORT NICHOLSON YACHT CLUB (INC) Statement of Movements in Equity For the Year Ended 31 March 2018 2018 2017 $ $ Equity at 1 April 2017 1,967,228 1,864,442 -------------- -------------- Net Surplus (Deficit) for the year 11,717 102,786 -------------- -------------- Total recognised revenues and expenses for the year 11,717 102,786 -------------- -------------- Equity at 31 March 2018 1,978,945 1,967,228 -------------- -------------- The accompanying notes form part of and are to be read in conjunction with these financial statements.

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ROYAL PORT NICHOLSON YACHT CLUB (INC) Statement of Financial Position As at 31 March 2018 Note 2018 2017 $ $ Current Assets Westpac Current Accounts 131,141 108,452 Paypal 457 6,477 Accounts Receivable 53,466 38,163 Term Deposits 79,811 151,677 ---------------- ------------- 264,875 304,769 Non-current Assets 8 1,816,779 1,812,368 ---------------- ------------- 2,081,654 2,117,137

---------------- ------------- Current Liabilities Accounts Payable 15,438 28,829 Other Current Liabilities 13 87,271 121,080 ------------ ------------ 102,709 149,909 Accumulated Funds General Funds 10 1,978,945 1,967,228 ---------------- ---------------- 2,081,654 2,117,137 ---------------- ---------------- For and on behalf of the Club Commodore

20 June 2018 Pedro Morgan

Club Manager

20 June 2018 Jason Reid The accompanying notes form part of and are to be read in conjunction with these financial statements.

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ROYAL PORT NICHOLSON YACHT CLUB (INC) Notes to the Financial Statements For the Year Ended 31 March 2018 1.Statement of Accounting Policies

Reporting Entity The Royal Port Nicholson Yacht Club (Inc) is registered under the Incorporated Societies Act 1908. With the exception of the matter in 1 a) below these financial statements have been prepared in accordance with generally accepted accounting practice as set out in the NZ Financial Reporting Standards. The financial statements include the results for the year of the club. Measurement Base The accounting policies, recognised as appropriate for the measurement and reporting of financial performance and financial position on a historical cost basis as amended by the revaluation of specific assets, are followed by the club. Specific Accounting Polices The following specific accounting policies, which materially affect the measurement of financial performance and financial position, have been applied: a) Fixed Assets Fixed assets are recorded at cost or valuation less accumulated depreciation. The club has begun a programme of asset revaluations to ensure the true value of assets is reflected in the accounts. The Club buildings, training yachts and Caniwi have been revalued on the basis of depreciated replacement cost. This basis of valuation is not in compliance with FRS-3 Accounting for Property Plant and Equipment issued by the NZ Institute of Chartered Accountants. FRS 3 requires the basis of valuation to be at fair value which the standard defines as the amount for which an asset could be exchanged between knowledgeable willing parties in an arm's length transaction. The Board of Governors considers that the use of depreciated replacement cost at this time is an acceptable and economic alternative to commissioning a market value based valuation. b) Depreciation With the exception of buildings, depreciation is provided at rates calculated to allocate the cost of an asset, less any estimated residual value over its useful life. For buildings the club has adopted a zero depreciation rate in line with the tax rate for depreciation on buildings which came into force from 1 April 2011. The following depreciation rates are used: Main clubhouse and alterations nil Revalued Old Clubhouse nil Revalued Caniwi and training yachts 3.5% DV Other buildings 10% DV Furniture fittings & other assets 20% DV Ocean Sports Marina 5% SL Computers 48% DV

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c) Accounts Receivable Accounts Receivable are stated at their net realisable values. d) Subscriptions Subscription income has been recorded on an accruals basis with a portion of unexpired subscriptions remaining on the balance sheet. The unexpired portion this year is $30,810 (2017 $37,252). e) Income Tax The club is exempt from tax under Section CW46 of the Income Tax Act 2007. f) Goods and Services Tax These financial statements have been prepared on a GST exclusive basis with the exception of receivables and payables, which are recorded inclusive of GST. g) Differential Reporting The club qualifies for differential reporting as it is not publicly accountable and it is not large under the terms of the differential reporting framework. The club has taken advantage of all available differential reporting exemptions. h) Changes in Accounting Policies There have been no changes in accounting policies used. All policies used are consistent with those used in previous years. i) Supplementary Information Following is a brief description of each operating activity: Wellington Ocean Sports Centre The WOSC provides training courses for both the general public, members and school students. The centre covers a range of different ocean sports at all levels. There is currently a focus on providing water and boating safety courses for schools from in and around the Wellington region. Club Events These include a range of regional national and international regattas. Club Racing The club provides a range of regular harbour and off shore races for club members to participate in. Club Facilities Income The club has a facilities management contract in place with Black and Gold for the Wardroom, the Boardroom and the Alan Martin room. Club lease arrangements include the restaurant and the Coene sheds. Other Income

This includes income from interest, advertising and any other activities undertaken.

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2 Wellington Ocean Sports Centre 2018 2017 $ $ Revenue (also note 14) 177,059 263,027 WYST 5,553 7,057 -------------- -------------- Total Revenue 182,612 270,084 -------------- -------------- Personnel 125,903 149,917 Training Yachts 11,707 19,498 Operating 55,083 71,586 -------------- -------------- Total Expenses 192,693 241,000 -------------- -------------- Total WOSC (10,081) 29,084 -------------- --------------

3 Club Events Revenue 13,054 6,896 Less Expenses 12,475 7,782 -------------- -------------- Total Club Events 579 (886) -------------- --------------

4 Club Racing Revenue 9,435 8,252 Less Expenses 15,002 14,624 -------------- -------------- Total Racing (5,567) (6,372) -------------- --------------

5 Club Facilities Income Restaurant Rental 99,451 100,000 Coene Sheds 7,136 7,136 Wardroom 103,440 93,931 -------------- -------------- Total Club Facilities Income 210,027 201,067 -------------- --------------

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6 Other Income (Club) 2018 2017 $ $ Advertising 3,247 3,718 Interest 3,248 2,537 Other Income 8,385 2,536 Grant Income 43,102 44,613 Donations 100 730 -------------- -------------- Total Other Income 58,082 54,135 -------------- --------------

7 Expenses Operating surplus from trading was arrived at after charging the following: Audit Fee 7,500 7,500

8 Property, plant & equipment

2018 2018 2018 2018

Cost or Accum Book Valuation Depn Value $ $ $ Club Buildings 1,703,003 37,208 1,665,795 WOSC Equipment & Furnishings 159,365 92,239 67,126 Club Equipment & Furnishings 554,823 524,277 30,546 Club Racing Equipment 103,677 50,365 53,312 -------------- -------------- ----------- 2,520,868 704,089 1,816,779 -------------- -------------- ----------- 2017 2017 2017 2017 Cost or Accum Book Valuation Depn Value $ $ $ Club Buildings 1,703,003 36,981 1,666,022 WOSC Equipment & Furnishings 149,074 86,536 62,538 Club Equipment & Furnishings 544,410 516,435 27,975 Club Racing Equipment 103,677 47,844 55,833 -------------- -------------- -------------- 2,500,164 687,796 1,812,368 -------------- -------------- --------------

9 Overdraft Facilities The Club has an overdraft facility of $20,000 and a credit card facility of $15,000 through Westpac Mastercard. The overdraft is secured over the assets of the club.

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10 Accumulated Funds 2018 2017 $ $

General Funds

Opening Balance 1,967,228 1,864,442

Net Surplus (Deficit) for the year 11,717

102,786 -------------- ------------- Total Accumulated Funds or Equity 1,978,945 1,967,228 -------------- ------------- 11

Related Parties A relationship exists between the Royal Port Nicholson Yacht Club and the Wellington

Youth Sailing Trust by the fact that both the Commodore and a nominated board member are Trustees of the Wellington Youth Sailing Trust.

As at the 31 March 2018 $1,940 (2017 $4,309) was owed by the Wellington Youth Sailing Trust to the Royal Port Nicholson Yacht Club and a nil amount was owed by the Club to the Trust (2017 nil).

2018 2017 $ $ Amounts owed to RPNYC at Year End 1,940 4,309 Amounts owing to WYST at Year End -------------- -------------- 1,940 4,309 -------------- -------------- 12 Contingent Liabilities

There were no contingent liabilities for this financial year.

13 Other Current Liabilities (Breakdown) 2018 2017

$ $ PAYE Outstanding 4,537 4,323 GST Outstanding 7,662 5,284 Grants received in advance 2,463 17,635 Subscriptions in Advance 30,810 37,252 Sundry Creditors 41,799 56,586 ------------- ------------- 87,271 121,080 -------------- -------------

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14 Grants and Sponsorship

2018 $

2017 $

During the course of the year, grants were secured as per below. There is a small amount of the 2017 Lion Foundation Grant still unused at balance date. WOSC Delivery of Water Safety Programme

Infinity Foundation 1,959 64,677 NZ Community Trust 15,000 20,000 Wellington Community Trust 10,000 10,000 Lion Foundation 12,000 4,655 --------------- ---------------- 38,959 99,332 --------------- ---------------- Club Four Winds Foundation 6,500 6,000 Infinity Foundation 32,042 54,575 --------------- --------------- 38,542 60,575 --------------- --------------- --------------- --------------- Grants remaining on balance sheet for future delivery 2,463 17,624 --------------- ---------------

Sponsorship

Moore Wilsons 3,000 Line 7 Charles Parsons 2,000 Crombie Lockwood 1,150 500 Morrison Mallet 1,150 Stellar Consulting 500 North Sails 1,560 McMorran Boat Builders 500 Hancocks Wines and Spirits 500 --------------- --------------- 5,360 5,500 --------------- ---------------

Other Sponsors During the course of the year the club was very grateful to receive sponsorship in the form of products and vouchers from the following: Black and Gold, Fortune Favours, Chris Coad, Seaview Sails and Rigging, Mount Gay, Whittakers Chocolate, Havana Coffee, Inlucem, Live Sail Die, The Apple Guy, Barton Marine, McKenzie Willis, Ray White, Accor Hotels, Burnsco, McMorran Boat Builders. Special thanks to Kyle Radersma and the team at Pivotal Thames who print the annual club Almanac.