te whare wananga o muma limited - ministry of education · te whare wananga o muma ltd – annual...

TE WHARE WANANGA O

MUMA LIMITED

ANNUAL REPORT 2015

TE WHARE WANANGA O MUMA LTD – ANNUAL REPORT 2015 - - - DRAFT

WAATEA.SCHOOL.NZ

AUDITORS’ REPORT


WAATEA.SCHOOL.NZ

AUDITORS’ REPORT CONT/-


WAATEA.SCHOOL.NZ

DIRECTORY

Registered Office Solicitors

31 Calthorp Close Wackrow Williams and Davies Limited

Māngere, AKLD 2024 Auckland 1010

New Zealand

Postal Address Auditors

P O Box 43 157 RSM Hayes Audit

Mangere Manukau City

Manukau City

Telephone Bankers

800 922 832 ASB Bank Ltd

Facsimile

09-277 7090

Email

[email protected]

Website

waatea.school.nz

Directors

Willie JACKSON

Wyn OSBORNE Lynette MURRAY-ROUNTREE Bernie O'DONNELL Tamati PATUWAI

mailto:[email protected]


WAATEA.SCHOOL.NZ

DIRECTORS’ REPORT The directors of Te Whare Wananga O Muma Limited present this annual report being the financial statements

of the company for the year ended 31 December 2015, and the independent auditor’s report thereon.

The shareholders of the company have exercised their right under section 211(3) of the Companies Act 1993

and unanimously agreed that this Annual Report need not comply with any paragraphs (a), and (e) to (j) of

section 211(1) of the Act.

STATEMENT OF RESPONSIBILITY The Directors are responsible for the maintenance of adequate accounting records and the preparation and

integrity of the annual financial statements and related information. The independent external auditors, CST

Nexia Audit, have audited the annual financial statements and their report appears on pages 3-4.

The Directors are also responsible for the systems of internal control. These are designed to provide reasonable

but not absolute assurance as to the reliability of the financial statements and to adequately safeguard, verify

and maintain accountability for assets, and to prevent and detect material misstatements. Appropriate systems

of internal control have been employed to ensure that all transactions have been executed in accordance with

authority and correctly processed and accounted for in the financial statements. The systems are implemented

and monitored by suitably trained personnel with an appropriate segregation of authority and duties. Nothing

has come to the attention of the Directors to indicate that any material breakdown in the functioning of these

controls, procedures and systems has occurred during the period under review.

The financial statements are prepared on a going concern basis. Nothing has come to the attention of the

Directors to indicate that the Company will not remain a going concern in the foreseeable future.

In the opinion of the Directors:

the statement of financial performance is drawn up so as to give a true and fair view of the Financial results

of the Company for the financial year ended 31 December 2015;

the statement of financial position is drawn up so as to give a true and fair view of the state of affairs of the

Company as at 31 December 2015; and

there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall

due.

Signed on behalf of the Board by:

----------------------------------- -----------------------------------

Director Director

Date:


WAATEA.SCHOOL.NZ

STATEMENT OF FINANCIAL PERFORMANCE For the year ended 31 December 2015

Dec-2015 Dec-2014

TOTAL TOTAL

($) ($)

Income

Min of ED funding – Kura Hourua 634,668 138,842

Min of Ed Funding – Early Childhood Education 345,146 -

Other Revenue 106,566 4,397

ECE Building Grant 1,129,100 -

Total Income 2,215,480 143,239

-

Gross Profit 2,215,480 143,239

-

Plus Other Income -

Establishment Costs 360,000 -

Total Other Income 360,000 -

-

Less Operating Expenses -

Administration 430,904 46,193

Learning Resources 91,279 -

Property 139,182 60,000

Staffing 687,136 36,049

Total Operating Expenses 1,348,501 142,242

-

Operating Profit 1,226,980 997

-

Non-operating Expenses -

Depreciation 50,122 3,865

Total Non-operating Expenses 50,122 3,865

-

Net Profit 1,176,857 (2,868)

This statement should be read in conjunction with the accompanying notes.


WAATEA.SCHOOL.NZ

STATEMENT OF MOVEMENTS IN EQUITY For the year ended 31 December 2015

Notes Dec-2015 Dec-2014

($) ($)

Equity

Opening Balance

(2,867) -

Current Year Earnings

1,176,711 (2,867)

Total Equity

1,173,844 (2,867)


WAATEA.SCHOOL.NZ

STATEMENT OF FINANCIAL POSITION As at 31 December 2015

Notes Dec-2015 Dec-2014

($) ($)

Assets

Property Plant and Equipment

88,789 35,645

Current Assets

Accounts Receivable

39,072 34,250

Cash and Cash Equivalents

150,527 531,355

Other Assets

58,745 1,851

Total Current Assets 248,343 567,456

Fixed Assets

Capital Work-In-Progress

1,274,979 210,630

Leasehold Improvements

8,039 -

Total Fixed Assets 1,283,018 210,630

Total Assets 1,620,151 813,731

Liabilities

Current Liabilities

Accounts Payable

122,960 157,802

Accrued Expenses

245,918 3,500

IRD Payables

- 6,042

GST

(37,368) 23,714

Other Payables

30,039 -

Deferred Grant Income

7,852 602,852

Total Current Liabilities 369,401 793,909

Non-Current Liabilities

Finance Lease Liabilities 4 76,906 22,687

Total Non-Current Liabilities 76,906 22,687

Total Liabilities 446,307 816,597

Net Assets 1,173,844 (2,867)

This statement should be read in conjunction with the accompanying notes.

Signed for and on behalf of the Board

----------------------------------- -----------------------------------

Director Director

Date:


WAATEA.SCHOOL.NZ

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 31 December 2015

1. Summary of Accounting Policies

Reporting Entity

The financial statements presented here are for the entity Te Whare Wananga O MUMA Limited (The Company), a registered

company under the Companies Act 1993.

Reporting Framework

The financial statements have been prepared in accordance with the Financial Reporting Act 1993.

These financial statements have been prepared in accordance with “Old GAAP” in New Zealand. Old GAAP comprises New

Zealand Financial Reporting Standards and Statements of Standard Accounting Practice that existed prior to the introduction

of New Zealand Equivalents to International Financial Reporting Standards. The Company has chosen to apply Old GAAP

because it meets the criteria for doing so; that is, it was applying Old GAAP at 31 December 2015, and it is neither publicly

accountable nor large as defined in the External Reporting Board’s Standard A1: Application of Accounting Standards.

The Company is not publicly accountable and is not large. Accordingly, it has taken advantage of all differential reporting

exemptions allowed under the Framework for Differential Reporting, except that items in the Statement of Financial

Performance have been recognised exclusive of Goods and Services Tax.

Measurement System

The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on

an historical cost basis have been used, with the exception of certain items for which specific accounting policies have been

identified.

(a) Changes in Accounting Policies

There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in

previous years.

(b) Property, Plant & Equipment & Depreciation

All property, plant & equipment are stated at cost less aggregate depreciation. Depreciation has been calculated on a straight

line value basis at rates that will write off the cost of assets over their estimated useful lives. The useful lives of the major

classes of assets have been estimated as follows;

Leasehold Improvements 9.5%

Motor Vehicles 40.0%

Furniture & Fittings 9.5% – 33.0%

Office Equipment 22.0% - 40.0%

Plant & Equipment 12.5% - 40.0%

All property, plant & equipment are initially recorded at cost with depreciation being deducted on all tangible fixed assets

other than freehold land, in accordance with rates set out in the Income Tax Act 2007.


WAATEA.SCHOOL.NZ

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS CONT. For the year ended 31 December 2015

(c) Goods & Services Tax

The Statement of Financial Performance has been prepared so that all components are stated exclusive of GST. All items in

the Statement of Financial Position are stated net of GST, with the exception of accounts receivable and payable.

(d) Income Tax

The company has received charitable status and is therefore exempt from paying any taxes on income.

(e) Investments

Investments are carried at the lower of cost and net realisable value. Where in the Directors' opinion there has been a

permanent reduction in the value of the investments this has been brought to account in the current period.

(f) Goods & Services Revenue

Revenue comprises the amounts received and receivable for goods and services supplied to customers in the ordinary course

of business.

(g) Grants

Grants received are recognised in the statement of financial performance when the requirements under the grant agreement

have been met. Any grants for which the requirements under the grant agreement have not been completed are carried as

liabilities until all the conditions have been met.

(h) Interest Income

Interest income is accounted for as earned.

(i) Employee Entitlements

Employment entitlements to salaries and wages, annual leave, long service leave and other benefits are recognised when

they accrue to employees.

(j) Provision for Dividends

Dividends proposed after balance date are not recognised in the financial statements, but are disclosed in the notes to the

financial statements.

(k) Receivables

Receivables are stated at their estimated realisable value. Bad debts are written off in the year in which they are identified.

Income received for Early Childhood Education and the Partnership School contracts is recognised in the period to match the

expenses.

(l) Leases

Finance leases that effectively transfer to the entity substantially all the risks and benefits incidental to ownership of the

leased item are capitalised at the present value of the minimum lease payments. The leased assets and corresponding

liabilities are disclosed, and the leased assets are depreciated.

Operating lease payments, where the lessor effectively retains substantially all the risks and benefits incidental to ownership

of the leased item, are included in the determination of the operating profit in equal instalments over the lease term.


2. Income and Expenses by Department

Dec-2015

NOTES KURA KURA EST ECC Ops ECC Build ADMIN TOTAL

($) ($) ($) ($) ($) ($)

Income

Min of Education – Kura Hourua

634,668

-

-

-

-

634,668

Min of Education - ECE Operational

- - 345,146

-

- 345,146

Other Revenue

24,345

- - -

82,221

106,566

ECE Grant

- - - 1,129,100

- 1,129,100

Total Income 659,012 - 345,146 1,129,100 82,221 2,215,480

Gross Profit 659,012 - 345,146 1,129,100 82,221 2,215,480

Plus Other Income

Establishment Costs

- 360,000 -

- 360,000

Total Other Income - 360,000 - - 360,000

Less Operating Expenses

Administration

121,019 248,500 48,257 - 13,128 430,904 Learning Resources

69,805 - 21,093 - 380 91,279

Property

89,621 20,000 27,823 - 1,739 139,182 Staffing

358,847 91,500 236,789 - - 687,136

Total Operating Expenses 639,291 360,000 333,962 - 15,247 1,348,501

Operating Profit 19,721 - 11,184 1,129,100 66,975 1,226,980

Non-operating Expenses

Depreciation

1,796 - 46,693 - 1,633 50,122

Total Non-operating Expenses

1,796 - 46,693 - 1,633 50,122

Net Profit 17,925 - (35,509) 1,129,100 65,341 1,176,857

3. Reliance on Government Funding

The Whare Wananga o MUMA Limited is a 100% subsidiary of Manukau Urban Maori Authority. The Company’s main source

of funding is from the Government hence maintaining the Government agency’s support is critical to the Company’s

operations.

Kura Hourua (Partnership School) is fully funded through the parent company.

ECE Building project is also fully funded through the parent company.

4. Property, Plant & Equipment

Dec 2015 Dec 2014

($) ($)

Equipment 7,891

Computer Equipment 6,690 1,533

Furniture and Fittings 8,117 467

Vehicles 66,091 33,644

Total Property Plant and Equipment’s 88,789 35,645

5. Depreciation Charge by Asset Class

Dec-2015 Dec-2014

($) ($)

Equipment 193 -

Computer Equipment 2,904 72

Furniture and Fittings 471 55

Vehicles 46,553 3,738

Total Depreciation 50,121 3,865

6. Related Party Transactions

Manukau Urban Maori Authority received $240,000 from the company for Project Management.

The Company paid $104,000 to Manukau Urban Maori Authority for administration fees for ECE Operations ($26,500),

Kura Establishment Project ($7,500) and Kura Operations ($70,000).

Nga Whare Waatea received $67,500 as rent for the use of buildings from Kura Operations ($45,000) and ECE

Operations ($22,500).


WAATEA.SCHOOL.NZ


7. Finance Leases

Dec 2015 Dec 2014

($) ($)

SsangYong Vehicle Finance 17,799 22,687

Mitsubishi Finance 59,108 -

Total Finance Lease Liabilities 76,906 22,687

8. Commitments

At balance date there were no Commitments other than those reported in the Balance Sheet.

9. Capital Work-In-Progress

Capital work-in-progress includes money paid towards the building consent applications, architectural designs, project

management fee and the payments to Construction Company with respect of the construction of Early Childhood Centre

10. Contingent Liabilities

At balance date there were no contingent liabilities. (2014: Nil).

11. Investments

The Company has no investments other than bank deposits in 2015 (2014: $NIL).

12. Securities and Guarantees

No Securities and/or Guarantees as at 31st December 2015.

13. Capital Commitments

Total capital commitments as at 31 December 2015 for the construction of the Early Childhood Centre is $998,470.

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