Hillary Outdoors Annual Report 2015 by Hillary Outdoors

ANNUAL REPORT 2015 Sir Edmund Hillary Outdoors Education Trust

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CONTENTS I think it all comes down to motivation. If you

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really want to do something, you will work hard for it.

Sir Edmund Hillary

• Chair’s Introduction

• Chief Executive Report

• Financial Statements

- Trust Directory

- Annual Report

- Independent Auditors Report

- Statement of Financial Performance

- Statement of Movements in Trust Capital

- Statement of Financial Position

- Notes to and forming part of the Financial Statements

• Our Sponsors and Supporters

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

CHAIR’S INTRODUCTION CLIVE TILBY TRUST CHAIR

There has been a noticeable shift in 2015 towards more people seeking out authentic experiences that re-connect them to nature and the sense of real adventure many of us remember from our childhoods. During the year, we have hosted and taken enquiries from corporates aiming to get their staff away from office distractions into an environment that fosters more creativity; parents looking for holiday programmes for their teenagers that will help them grow into responsible young adults; and schools that want their students to understand their impact, both as individuals and collectively on each other, their communities and the environment.

Bucking the “modern norm” of sedentary, gadget-filled lifestyles Schools (our major clients) are increasingly recognising the value of the natural lessons available outdoors in stark contrast to the dependence on technology in our everyday lives. Recent research is showing, that nature has a restorative effect on the brain and is necessary for human and social resilience. Brain activity monitoring has demonstrated that even short exposure to nature (2 to 3 days) provides significant changes in wellbeing. In the light of this research, we now know that our shorter (5 day) programmes are providing quickly absorbed mental benefits for our students purely from exposure to the natural environment. Our programmes and events, based in some of New Zealand’s most spectacular settings, utilise outdoor activities as a tool to educate young people about themselves, the environment and their potential in this world. Leaving devices such as cell phones and ipads behind, our programme participants are mentally and physically able to work towards our aims of them developing care and respect for self, others and place.

Strong growth in our bookings A combination of increasing demand for outdoor education programmes, increased regulation in this industry, as well as increased interest in programmes with significant social impact from both commercial and charitable funding partners, has placed us in a better position for filling and funding our programmes. This is evidenced by the increase in programme and event attendance as reported on page 20 of 8% from 2014 to 2015. Our new brand name launched at the end of 2014 along with Worksafe registration as an authorised provider of “Adventure Activities” in an

increasingly regulated environment, has further secured our reputation as a provider of top quality outdoor education. The value that we add through our programmes is recognised and appreciated by most of our clients who have chosen us because they know that some other operators may cut corners in order to deliver lower prices. Clients particularly seeking authentic experiences know they get the ‘real deal’ at Hillary Outdoors with some of the most highly qualified and experienced instructors in New Zealand.

Continuing to strive for a position of financial sustainability As always, the greater the use of our facilities and resources, the greater the need for maintenance, replacements and upgrades. Of course all these things come at a cost and financial sustainability continues to be a challenge. Fortunately we have the support of some fantastic partners, without whom we would not exist, however we are continually looking to expand this network of supporters to further secure our future. In early 2016, the Trust and Management will conduct a joint strategic review, the main focus of which will be to identify initiatives that strengthen financial sustainability. Our goals for 2016 and beyond remain to honour the vision of our founder, Graeme Dingle, and original patron, Sir Edmund Hillary, and deliver quality outdoor education experiences, especially benefiting youth and those who would not otherwise be able to afford our programmes. We aim not only to introduce young people to the New Zealand outdoors, but to sow the seed for change and growth through that introduction. We want people to explore their values and consider values and behaviours that are important for a healthy society: values such as perseverance, integrity, and environmental care.

We appreciate the support

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As well as learning skills, we hope that students finish their course with

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a greater awareness of the natural environment

Graeme Dingle

We look forward to many more people joining us on this journey and thank the people who have supported this great organisation over the past year, many of whom are mentioned in this report, however I would particularly like to thank Graham Seatter for his Chief Executive leadership. I would also like to thank my colleagues on the Trust for continuing to volunteer their time and diverse skills to Hillary Outdoors. During the year we farewelled and thanked Wayne Hughes for his 10 years as a Trustee and welcomed two new Trustees Tony Gault and Rachel Dunne. As always, special thanks to our Patron the Rt Hon Dame Jenny Shipley for her continued support of our organisation.

“(Hillary Outdoors Centre) location is very important, students need to be away from the city....Experiencing the outdoors, our country is surrounded by large areas of native bush. It’s giving them the opportunity to learn about our environment, how to look after it and not take it for granted ” T. Pitts-Brown, Sports Coordinator, Otorohanga College

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

CHIEF EXECUTIVE REPORT

GRAHAM SEATTER CHIEF EXECUTIVE

2015 was a year of consolidating on recent progress whilst moving forward in a number of areas. The key areas of success were our centres – Tongariro, Great Barrier Island and Events. The quality of the work done by our staff was outstanding as indicated by the incredibly positive responses we received from students and their teachers. Customer satisfaction and retention are key to our future as they allow us to retain bookings from one year to the next, and attract new bookings via positive word-of-mouth – an efficient and effective form of marketing.

CLOCKWISE FROM LEFT: Kings College participating in a long programme at Hillary Outdoors Tongariro, Canteen visited Tongariro for a programme in 2015 and Flaxmere College got to enjoy some snow on their visit!

As always, success starts from the top and the management of the centres by Janet Prier, Gemma Parkin and events by Darren Ashmore has been outstanding. Janet has dealt with the complexity and demands of her role admirably and Gemma’s work belied the fact that she was in her first year of managing an outdoor education centre. Darren just kept forging ahead with the highest quality events programme on offer!

challenges of the last 5-10 years. Some examples include: SSThe considerable growth in bookings ahead of the 2016 year, including – as an example – two new schools that contacted us out of the blue,each to confirm bookings for 120+ students;

Very pleasingly we achieved a fifth consecutive year of an improved surplus before depreciation as we move forward from the 2010 nightmare deficit of $270K. The 2015 surplus before depreciation of $85K is, however, only a modest improvement on $79K from the previous year, and that is before depreciation, so we still have a long way to go in order to achieve the desired position of longer term financial sustainability.

SSContact initiated by The Warehouse Group Ltd. for a “community partnership” to be established between Hillary Outdoors and Torpedo7; SSAn overwhelming response to enrol for our tertiary programme. We not only turned down high calibre candidates, but we had waiting lists for both Certificate and Diploma courses for the first time in the last 5+ years;

Perhaps the most encouraging factor – albeit somewhat intangible – was the manner in which evidence accumulated to indicate that we have restored our reputation to its past very high levels after the considerable

Hillary Outdoors Annual Income Trend 4,000,000 3,500,000 3,000,000

Capital grants, sponsorships and non-operating income Course income including supported bookings

2,500,000 2,000,000 1,500,000 1,000,000 500,000 0

2009

2010

2011

Sir Edmund Hillary Outdoors Education Trust

2012

2013

2014

All of the above and similar successes have had one thing in common – they are as a result of unprompted approaches from unknown sources. New business has been generated because of the favourable perception of us and our organisation. The final element in the mix is staffing – and in that space we are experiencing more settled staffing and longer staff retention, both of which are very positive developments.

Revenue continues to climb The $85K surplus before depreciation was largely achieved through excellent cost control in the centres as total expenditure for the year of $3,419K was $87K below budget and $8K below 2014. Our total people costs of $2,053K were $72K below budget and they were $13K above 2014, despite an across-the-board 1% salary/wage increase for all staff during the year (this primarily relates to more effective use of staffing). Course income for the year of $2,639K was very similar to 2014 ($30k lower), largely driven by the new Kings College long programme. Our core short-course school programme income over both centres grew

by $45K which is excellent given the ongoing growth in long-course school programme income. Non-operating income of $865K was $27k (3.2%) ahead of 2014 and the vast majority of that income was used to support low decile students attend Hillary Outdoors – students that would not otherwise have been able to afford to attend our programmes. The Tongariro Centre had a stellar year and all staff are to be congratulated on their success. Student short-course income grew by $32K on 2014 levels and the inclusion of revenue from the new Kings College long programme meant that total school course income grew from $1,525K in 2014 to $1,764K, which is growth of 16% year-on-year. Furthermore, total expenditure for the year at Tongariro of $1,867K was $115K (6%) below budget, and $51K (3%) below 2014 – despite a very significant increase in school course bookings. The only negative element was a significant decrease in contract/corporate bookings from the very high level of 2014, which meant that total income for the Centre was slightly below both budget and 2014. The net result for the Centre was a surplus of $238K - $27K better than 2014 and $58K ahead of budget - for all direct Centre costs, excluding any component of Head Office costs and depreciation.

2015

ANNUAL REPORT 2015

The Great Barrier Island Centre also had an excellent year. Shortcourse school income was up by $13K on 2014 and long-course programme income was also ahead of both budget and 2014, meaning that total income in the Centre of $850K was $57K ahead of 2014 as we move ever closer to having a $1m business on the Barrier! In 2010 total revenue was $440K! Very good cost control allowed the centre to achieve a surplus of $31K – better than both budget and 2014.

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Our biggest asset is our people We continue to be extremely well-served by our people, including staff, trustees and volunteers.

THANKS TO GENESIS ENERGY...30 students from Ruapehu College attended Tongariro in 2015 as a result of their funding

The quality of the work of our staff at the centres is evident in the feedback we receive from teachers accompanying school groups. This feedback is universally positive, and typically extremely positive. Some examples of feedback about our staff are below...

Fantastic feedback about our staff • I have learned a great deal about strategies to encourage teenage girls to take more responsibility for themselves. Watched and attempted to learn from observing some phenomenal teaching in action.

CLOCKWISE FROM LEFT: Tongariro Centre Instructors; Gisborne Girls’ High School having kayak safety instruction at Hillary Outdoors GBI; Ruapehu College at the Tongariro Centre; Students sailing on their visit to Great Barrier Island

• Our instructor was amazing, she was super supportive of our group throughout the week. Managed the difficult events with a smile and was encouraging and supportive of all the students.

• We love promoting Hillary Outdoors here because we do see the benefits with our students. Their lives do change when they return from such an awesome experience.

• Our instructor had a very calm and understanding way with the students. He let the students direct and manage the programme and added expert advice when the students needed it. He also taught the students a lot of news skills in the outdoors, leadership and selfmanagement. Some excellent teaching on display this week. • The quality of teaching was excellent and the instructors we had really showed the ability to be able to get to know the students and encourage the students to participate. They managed the students really well and made sure that they were always safe and felt safe. The activities also progressed really well to help develop their confidence as each day went on. They did a great job! • A fantastic week! Instructors were great, activities were sufficiently challenging and totally engaging for the students. Plenty of valuable leadership and team building skills as well as personal skills (selfmanagement, discipline, etc.). • Staff provide an amazing inspiration to the students in the way they interact, planting seeds for a love in a unique environment, providing opportunities for the students to go out of their comfort zone and gain confidence in themselves, life skills in a holistic way!

Sir Edmund Hillary Outdoors Education Trust

Of course our instructors are at the “coal-face”and are usually the focus of the positive feedback that is received, but they can only do their job well because everybody else is playing their part in an equally professional, high quality manner. This includes the centre support staff in areas such as maintenance, catering and cleaning, the leadership teams as led by Gemma and Janet, and also the Auckland team who make sure we have the bookings and funding required to do a quality job with the students. Finally – we have our group of nine trustees led by Chair Clive Tilby, who ensure that the quality of governance is at the same high level. We have a small, but relatively complicated business requiring careful and considered guidance, which our trustees provide on the basis that they share the same passion and commitment both to our business and to our country’s young people. When all of that comes together we end up with overall outcomes such as these – once again, a very small snapshot of quotes from teachers that bring young people to our centres, including our events...

ANNUAL REPORT 2015

• Benefits include increased independence, initiative, teamwork, leadership, self-confidence, adaptability... etc. I am basing this on conversations that we have had since our return and on observations at school. Examples include many students saying they get on with their family better now, many who are continuing selfdirected fitness work (one girl has lost 6kg, which puts her back into a healthy weight range), an increased focus in class (the girls are performing well above average academically as a class since their return - this will be interesting to track further). • The students gained self-confidence, perseverance, and resilience. They learnt to work together and not to centre everything about themselves. Some dependent students changed through the week to be more independent and less demanding. Gained an appreciation for the outdoors and their impact in and on the environment. Less dependence on technology for entertainment. • Thank you very much for another wonderful experience. I rate this programme as the most meaningful educational experience in which I have been involved.

Our partners play a vital role We continue to be very well served by our partners. In 2015 we established a relationship with Torpedo7 as a “community partner” under the wider brand of The Warehouse Group. Initially we received over $8K as in-store and on-line donations collected on our behalf in a campaign that is likely to be repeated three times per year. Given the strong synergies between our organisations, there are many other opportunities to explore as we develop our relationship. In terms of sponsorship we continue to be very fortunate to have had long-term relationships with Genesis Energy and Chapman Tripp. Genesis support us in a number of areas, including supporting low decile schools participating in our programmes in their areas of activity, sponsoring the Hillary Challenge event and providing funding for kayak courses. Chapman Tripp continue to provide specialist advice and support in key business areas, particularly in legal matters.

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There’s immense satisfaction in knowing

THANKS TO GRASSROOTS...we were able to purchase more “rig” for sailing as a result of their generous funding!

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that the challenges you face are only as limited as your imagination

Graeme Dingle

CLOCKWISE FROM TOP: Palmerston North Boys High School tackles Mt Ngaruruhoe; Graeme Dingle, the founder of Hillary Outdoors (or OPC as it was then); One of the many students that has enjoyed sailing at our Great Barrier Island Centre, Ruapehu College students transfer their outdoor learnings to their discussions indoors; A Ruapehu College student getting a safety check by one of our instructors.

We also enjoy great support from a large number of trusts, all of which are listed in this Annual Report. Whilst reluctant to single out any supporter(s), I must mention Pub Charity and Foundation North because of the size of their donations – they really make a huge difference both to us and – most importantly to all those young people who would otherwise not be able to participate in our programmes.

Safety and delivering quality continue to be top focuses Safety is, and will always remain paramount. 2014 had seen the introduction of compulsory registration and auditing for all organisations deemed to be operating in the area of “adventure activities”, except for educational institutions and marine-based organisations. We achieved registration – as was needed for us to be able to continue in business – but the process added no tangible value to our business whilst adding considerable costs and bureaucratic demands.

are recognisable as being “Hillary Outdoors Programmes”. This will be a focus in 2016 with valuable input from centre managers and our education coordinator.

In 2015, again we conducted our annual safety culture survey and were pleased to once again find that the culture of our organisation is very positive but there are areas where we can make improvements. We continue to promote a “no blame” culture so that learnings are freely shared, especially in the area of “near misses”. The final word on safety rests with a teacher from one of our schools:

• The instructors are very good at adapting their programme to the particular group of students and how well they are working together and individually handling the challenges they are presented. Their risk management systems are very good and give me great confidence in bringing students here and reassuring parents about the safety of their children.

Our programmes and operations remain key ingredients In terms of the programmes we deliver, we are very much attuned to the needs of each of our customers and we are increasingly becoming more flexible in our practices so that we meet the needs of each individual customer. This approach recognises the fact that every customer is different and therefore every programme must be customised to the needs of the individual customer – we do not have a “one size fits all” approach.

In 2015 we had two “Surveillance Audits” requiring further expenditure and interruption. Our three-tier safety management system again proved to be of the highest quality as we comfortably satisfied the requirements of those audits. In addition to the audit process, we constantly review and amend all elements of the system and are pleased that our system continues to be strongly endorsed by the audit processes related to our registration. Very importantly, we did not experience any serious, high-level incidents during the year

We must, however, deliver some consistency across all programmes, including between centres. The areas of consistency were being debated in 2015, but clearly they must involve quality, focus on education and a degree of commonality such that our programmes

Current trends in outdoor education include an increasing focus on educational outcomes, ecological education and helping young people develop resilience and independence. Recognising these trends has led to our promotion of “long programmes” which we define as anything of a longer duration than our standard 5-day programme. Long programmes began for us in 2012 with Hillcrest High School sending two groups of 30 students to our Great Barrier Island centre – each for five weeks. By 2014 Trident High School and Otumoetai College were also taking part in long programmes at Great Barrier Island and in 2015 Kings College became our first long programme at our Tongariro Centre. There is plenty of demand from schools for long programmes and we are committed to taking advantage of that situation by growing our long programmes as they provide a significantly enhanced opportunity to “make a difference” for young people, and they are great for our business. In 2015 long programme income of $493K represented 20% of total revenue generated by students – up from 0% in 2011. We are committed to continuing to attract new long programme customers in future years to drive growth in our business.

“Students are more accepting of those around them, they have taken an interest in environmental issues around the college and local area. They self manage in the college environment far better” D. Harvey, Teacher in Charge, Te Puke Intermediate

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

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For many young Kiwis, recreational time is spent indoors in front of a screen, or participating in structured activities constrained by built or modified settings

Scott Duncan

SUCCESS STORY

TAITA COLLEGE WELLINGTON, DECILE 3 SCHOOL TONGARIRO VISIT

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Associate Director, Human Potential Centre, AUT University

We were approached by the Principal of Taita College (a Decile 3 co-educational state school in the Hutt Valley, Wellington) with the request of delivering an NCEA assessment programme for “a group of Year 12 students who have not currently got Level 1. Some of these are at risk of leaving college and seem to be drifting. We are considering interventions and thinking that possibly a group of students visiting your Centre might be the making of them.”

BRIDGET JANSE EDUCATION COORDINATOR

LEFT: Student talents go well beyond reading and writing in what can be “assessed” for academic success – as illustrated by the amazing drawings in the student reflection log books that were completed as part of their Hillary Outdoors programme.

The story unfolded into the participation of 10 students in a specially designed programme at our Tongariro Centre, accompanied by their Dean...at the end of our debrief, I reflected as I looked around at the young men standing in the circle with me and my co-instructor. These were very different boys from the ones I had met 5 days earlier. Education through Adventure speaks for itself and can inspire success. When sitting down, talking with Kotuhi about his week, going through and marking his learning and reflection log, I asked him, “So how was your week?” “Yeah, it was good,” he replied. “Do you think you have participated and contributed to the team this week?” I ask. “Um, yeah,” he replied. “Do you think you have become more aware of your behaviour and how you work with others?” “Yip.” “Do you think you set and achieved some personal goals and challenged yourself?” “Yip.”

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“Congratulations Kotuhi, you have had a fantastic and personally challenging week. You never complained, you pushed yourself out of your comfort zone and have successfully achieved 6 NCEA credits at Level 2. Well done. I shook his hand.

THANKS TO FOUNDATION NORTH...these students may have missed out experiencing the wonderful outdoor lessons of Great Barrier Island if it was not for your generous funding

Sir Edmund Hillary Outdoors Education Trust

He looked at me, in disbelief, and said “Thanks.” His whole face lit up. He had, along with the rest of his group, just achieved his first credits at

ANNUAL REPORT 2015

NCEA Level 2. His body language and huge smile said it all. Like many young people today, some of these students had not experienced positive success in their school assessment system to date, so had become disengaged and disconnected as soon as the word “assessment” was mentioned. Current government policies are aiming for 80% of all school leavers to have a minimum of NCEA Level 2, so there is pressure and expectations on students and schools. A lack of success has led to self-doubt and during the programme it was one of the biggest hurdles they each had to overcome. They had to learn that they are capable of success, if they try their best and give themselves a chance. These students have so much potential, which is recognised by their school and resulted in their 5-day programme at Hillary Outdoors. Being totally focused on the students’ individual needs and abilities, it gave students the opportunity to see how they could contribute to a team and experience success, individually and collectively as a group. For most it was a chance to take a break from their home lives and focus on themselves. They were presented with opportunities to set personal goals, experience challenge and take responsibility for themselves, with guidance and support from the instructors and staff. In the process, they all achieved success and came to realise they were far more capable than they gave themselves credit for. After a positive and potentially life-changing experience at Hillary Outdoors, Taita College is implementing the important follow-up step of providing ongoing support for the students back at school – they will be part of an academic mentoring programme aiming to help them continue to find success in their chosen pathways both at, and beyond, school.

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THANKS TO GENESIS ENERGY...these young people were able to experience a Hillary Outdoors programme that they otherwise may have not been able to afford

Tongariro Centre Our Tongariro Centre continues to be the “engine room” of our organisation with high and growing levels of bookings, revenue and recognition of the quality of our programmes. Highlights: SSTotal bed nights for the Centre in 2015 of 15,606 were more than 10% higher than in 2014. SSSchool course income of $1,764K was $238K (15.6%) greater than the previous year. SSTotal expenditure for the year was $114K below budget and even $24K below 2014. SSThe resulting surplus for the Centre (ignoring any contribution to Head Office costs) was $238K - $18K better than 2014. The one negative outcome for the year was that corporate/contract bookings fell by $200K as many one-off bookings that contributed to $292K total revenue in 2014 were not repeated in 2015. Demand for our services has grown to new heights. We have had a succession of new bookings, often from new schools that have had no contact with us prior to making a booking – twice for more than 100 students! This really is a “referral business”, which, in the small New Zealand outdoors sector, suggests that our reputation is back to its best. This is both consistent with, and has undoubtedly been driven by the incredibly positive reviews we received from customers (i.e. schools) and clients (i.e. students) and it is the exceptional work undertaken by our staff

that is the reason for this – they are at the coalface and it is the quality of their work that makes the difference.

Our “Adventure Activities Regulation” audit involved a surveillance audit of our Tongariro Centre with very positive results.

A further example of growth through “word of mouth referral business” was enrolments for our tertiary courses. In recent years we have failed to recruit the necessary minimum of 19 students for our one-year programmes, but in 2015 we were significantly oversubscribed such that we not only had choices to make which increased the quality of the student intake, but we were able to establish waiting lists, thereby ensuring that we were full. The outcome of this will be much improved courses going forward with increased quality of graduates, thereby helping the outdoors sector in the future.

Finally, we must recognise the outstanding work of those that provided leadership to the Tongariro Centre during 2015. Janet and her team of Mike, Flo, Don and Luke have once again made a great contribution to our business, and – more importantly – to almost 4000 young people.

The King’s College long programme established in 2015 was a big part of the growth and success of the year. King’s brought six Year 10 form classes to us, each of approximately 23 students, for a period of 11 days/nights at the end of what was a three-week outdoor programme designed to increase the self-management, resilience and self-confidence of their students. In itself this was a tremendous endorsement of outdoor education – and especially long programmes – and the school reported that positive student outcomes had significantly exceeded expectations. Safety and other areas of compliance continue to be growing areas of work for our staff and increased areas of cost for the business. We faced audits in safety and education in 2015 and both resulted in very positive outcomes. NZQA conducted their biennial “External Evaluation and Review” (EER) evaluating the educational effectiveness of our Tertiary Programmes and were extremely positive about the learning outcomes and overall impact we had on our tertiary students.

CLOCKWISE FROM TOP: Student from Ruapehu College enjoying the ice around the Tongariro Centre; Ruapehu College students taking a break on their way up Mt Ngaruruhoe; Some of our wonderful catering staff at Hillary Outdoors Tongariro; The 2015 Tertiary programme students; Kings College students during their long programme.

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“I believe most of the students have displayed respectremained and genuine caringand towards others. Bookings stable consistent Some have also conquered their fears. An with 2012 after two years of growth example of this was to stand up in full – a positive situation assembly and share their experiences with the school. Another example , volunteering to help with one of our community primary

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schools without being asked” T. Pitts-Brown, Sports Coordinator, Otorohanga College

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

Great Barrier Island Centre Our Great Barrier Island Centre consolidated its business in 2015 as it continues to establish itself as a very successful business in its own right. Highlights:

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THANKS TO PUB CHARITY...these students may have missed out experiencing the cultural and community lessons of Great Barrier Island if it was not for your generous funding

SSTotal bed nights for the Centre in 2015 of 7,677 were 2% below 2014 but 92% ahead of 2011. SSSchool course income of $720K was $12K less than the previous year, and income from our traditional core 5-day programme grew by $13K which reversed a recent trend of decline. SSTotal expenditure for the year was right on budget. SSThe resulting surplus for the Centre (ignoring any contribution to Head Office costs) was $31K - $11K better than 2014. Long programmes over terms two and three continue to underpin our business as they have allowed us to move away from totally seasonal work to a year-round business that provides consistency of staffing and programme delivery, with resultant benefits in quality and safety. Long programme income now accounts for 40% of our total school course income and it is destined to grow again in 2016. The challenge now is to be able to take new bookings as we have hit the limit of capacity for long programme bookings at Orama. The key to the success of the business on GBI is a great staffing team, well led and doing consistently excellent work. In 2015 the GBI team focussed on increased client contact, meaning more learning/ student focused programmes with programmes differing each week depending on the school’s required outcomes. This approach has received very good feedback. After having farewelled Simon Graney from the business and the island in late 2014 we welcomed Gemma Parkin in January of 2015. Gemma came to us from Christchurch and she settled into her role very quickly, with excellent support from existing staff – especially Roger, Tom, Tesh, Freya and James. Our GBI Centre also had a surveillance audit as part of retaining their adventure activities registration, which was dealt with simply and quickly as our safety systems and practices once again withstood close scrutiny. The end of 2015 marked very nearly 10 years of our operation on GBI. Our thanks go to the Orama team for initially welcoming us into their world, then for supporting our growth and development as we have moved forward to the stage whereby almost 1000 young people annually are enjoying the experience and benefits of outdoor education experiences with Hillary Outdoors on Great Barrier Island.

“Self management is something I see has improved massively on return from our weeks at Hillary Outdoors. Students seem more organised and often think first before resorting to ask simple questions. Student appreciation for our environment and its care is evident. I see this in a different attitude toward the college enviroment, litter in bins, willingness to recycle etc ”

CLOCKWISE FROM TOP: Hillcrest High School students visting a marae on Great Barrier Island as part of their cross-curricular long programme; Whether students arrive on the island by air or sea, the views are breathtaking; Long programmes actively involve students in preparing their meals and that even involves catching fish to eat!; Coasteering involves enormous leaps of faith and confidence as students enter the water from great heights; We literally see students “blossom” in front of us as they build their skills and accomplish wonderful things like this catch!

M. Rennell, Teacher in Charge, Rosehill College

“(Since visiting Hillary Outdoors, students have been) taking on leadership roles with greater confidence /understanding the importance of team work /not to give up when it gets tough/managing to cope with different personalities in testing conditions” R. Gregory, Teacher in Charge, Taupo-nui-a-Tia College

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

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THANKS TO GENESIS ENERGY...your sponsorship of the Hillary Challenge Final makes all the difference in inspiring students to represent their schools and produce such a successful event CLOCKWISE FROM TOP: Students crossing the finish line at the Genesis Energy Hillary Challenge Final, student participating in the Get2Go Series, teamwork at a Hillary Challenge 6hr event, the great comaraderie shared by fellow team mates during the Genesis Energy Hillary Challenge Final.

Events In 2015, our events programme continued to provide a variety of positive opportunities for young people right across the country to get into the outdoors and try something a little different. Whether there to compete for the win, or simply to participate in a fun adventure with their teammates, there were interesting and unique challenges catering for all. In total there were twenty events planned on our calendar, but due to range of reasons from affordability, to clashes with other competing events - ultimately resulting in low entry numbers, two of these did not go ahead. It seems there is an increasing pressure on students with regards to exams and other sporting/extra-curricular commitments that we are competing with when it comes to event participation. I am very pleased to report that the eighteen events that did go ahead were all very successful and just over 2300 participants took part in total. Feedback was consistently positive and incident levels were very low and all towards the lower end of the range of severity. The 15th Genesis Energy Hillary Challenge Final in May again proved to be a highlight for everyone involved – the students, team managers as well as our staff. The students always come so thoroughly prepared and bring so much passion to the challenge that it serves as inspiration for everyone. For the first time in 15 attempts Thames High School were victorious, an achievement which was celebrated right across the local Thames community. Our North Island Hillary Challenge 6hr Adventure Race was held in Rotorua this year with 22 teams (176 students) taking part. This is the

Sir Edmund Hillary Outdoors Education Trust

same number of teams that we had across two North Island events in 2014, so shifting it back to a single North Island event in a central location was the right decision. This event is still very expensive (particularly when travel and accommodation is added in), especially when compared to other ‘public’ events of a similar nature, where our entry fee per head is around 50% more.

J. Bloom, HOD Physical Education, Outdoor Education and Health, Thames High School “Our involvement with helping our kids teams training towards the Get 2 Go and Hillary Challenge have been the catalyst for the whole family to get involved in a range of outdoor activities that we would never have contemplated previously – so thanks to the Team at Hillary Outdoors! ”

The ongoing nature of internal school assessments at the senior level also can affect the number of students/teams that take part. We were again forced to cancel the South Island 6hr event due to a low number of entries for the event that was scheduled for late in Term 3. In 2016 this event will be moved to the end of Term 2, hopefully away from the key assessment time of year. The NavQuest Series of four events were held in Taupo, Auckland, Waikanae and Rotorua. 380 participants, around 40/60 school students vs general public, which reflects a consistent level of participation on previous years. It was disappointing to see a low turnout of school students, but events held on a weekend will only ever attract the committed students and teachers who want to give their own time to bring them along. In 2016 the NavQuest events will be renamed the Senior Get2Go Challenge and will move to a weekday, to hopefully attracted greater participation by schools. The 10th annual Get2Go Challenge Series in Term 3 had 194 teams from 112 schools register for one of the 11 events. This represents a strong number not far off the record 205 teams in 2013, but also shows about 15 fewer schools than 2014. Due to low entry numbers (only 4 teams) and as in 2014, the Manawatu/Wanganui regions event was combined

ANNUAL REPORT 2015

“Our students come away, not only having learnt many new skills, but also with enthusiasm and passion for the outdoors. I am always blown away by the number of exstudents who are taking these skills and using them after they leave school.”

T & S. Nicholas, Parents of two event participants, Takapuna Grammar School

with the event in the Wellington/Wairarapa region. All 11 events ran smoothly, thanks to over 160 volunteers from the loyal clubs and organisations who assisted with the planning, equipment and on the day management of the various challenges. Following on from the regional series, the Grand Final for the top team from each of the 12 regions played out over 5 days at our Great Barrier Centre at the end of the year. The event was a huge success and yet another great example of the entire extended GBI team (and of course Orama) working together on the same project as a truly high performing team. For the first time in several attempts, Waimea College (Nelson)

were the winners of the event, taking the trophy back to the South Island for just the 2nd time in 10 years. As always the main barrier to the continued growth of our events programme and the participation of more youth is funding/ sponsorship to provide the support to a) keep the entry fees/cost affordable to a wide range of participants and b) allow us to market the events successfully and get the information to the right teachers in each school. Our events are fairly deeply ingrained in the culture and community of many schools, but there are still a huge number that we have not even touched.

PERFORMANCE REPORT 2015

FINANCIAL STATEMENTS For the Year Ended 31 December 2015

Programme Attendance

2015

201474

School students attending 5 day programmes

3674

3486

+5%

School students attending long programmes

261

130

+101%

School students participating in events

2300

2180

+6%

TOTALS

6235

5796

+8%

Qualifications at Hillary Outdoors NZOIA Leader and Level 1 NZOIA Level 2 NZOIA Assessor Skills Active Assessor Technical Experts Qualified Teachers Boatmasters

School Students at Hillary Outdoors Centres in 2015 by Decile Ratings

77 15 4 4 8 5 5

• Trust Directory

• Annual Report

• Independent Auditor’s Report

• Statement of Financial Performance

• Statement of Movements in Trust Capital

• Statement of Financial Position

• Notes to and forming part of the Financial Statements

Decile 1-3 Decile 4-6 Decile 7-9 Decile 10

Occupancy in Bed Nights for Great Barrier Island Centre

Occupancy in Bed Nights for Tongariro Centre ?%

2015

67%

71%

2014

69%

2014 68%

2013

54%

2013 67%

2012

2000

4000

6000

8000

10000

12000

42%

2012

59%

2011

35%

2011 14000

16000

% of total capacity

Bed Nights 2015: 15606 Bed Nights 2014: 14080

TABLE OF CONTENTS

Sir Edmund Hillary Outdoors Education Trust

1000

2000

3000

4000

5000

6000

7000

8000

9000

% of total capacity

Bed Nights 2015: 7677 Bed Nights 2014: 7834

ANNUAL REPORT 2015

TRUST DIRECTORY

ANNUAL REPORT

As at 31 December 2015

Charities Commission Registration CC26731

The trustees have approved the financial statements of the Sir Edmund Hillary Outdoors Education Trust for the year ended 31 December 2015.

Date of Formation

6 August 1973

Nature of Trust

To provide education in all its forms in outdoor pursuits.

Registered Office

Suite D, Level 1

31D Bartley Terrace

Devonport, Auckland

Patron

Rt Hon Dame Jenny Shipley

Trustees

Clive Tilby - Chairman

David Beeche

Mark Copeland

Thea Depetris

Rachel Dunne

Mervyn English

Tony Gault

Approved for and on behalf of the Board of Trustees this 7th day of June 2016.

Clive Tilby – Chairman of the Board of Trustees

Iain Morrison

Rupert Wilson

Independent Auditor

BDO Auckland

Level 8, BDO Tower

120 Albert Street

Auckland

Bankers

Bank of New Zealand Limited – Taupo Branch

Solicitors

Chapman Tripp

Sir Edmund Hillary Outdoors Education Trust

For the year ended 31 December 2015

ANNUAL REPORT 2015

Tony Gault – Trustee

STATEMENT OF FINANCIAL PERFORMANCE For the year ended 31 December 2015

Note

Course Fee Income Less Operating Expenditure excluding depreciation

Operating Loss before depreciation and other income Add Other Income

Operating Surplus/(Loss) for the year before depreciation Less Depreciation

Net Loss for the year

2015

2014

2,639,125

2,668,569

3,419,187

3,427,359

(780,062)

(758,790)

865,040

837,935

84,978

79,145

(268,951)

(293,896)

(183,973)

(214,751)

STATEMENT OF MOVEMENTS IN TRUST CAPITAL For the year ended 31 December 2015

Note

2015

2014

Trust Capital at the beginning of the year

2,617,740

2,832,491

Net Loss for the year

(183,973)

(214,751)

Trust Capital at the end of the year

2,433,767

2,617,740

The above statements should be read in conjunction with the notes to and forming part of the financial statements.

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION

For the year ended 31 December 2015

As at 31 December 2015

Note

2015

2014

1) STATEMENT OF ACCOUNTING POLICIES Reporting entity

CURRENT ASSETS Cash at bank

235,048

47,640

Accounts receivable

28,302

30,773

Other receivables

5,004

2,095

Term deposits

202,318

Inventories

17,591

16,555

285,945

299,381

Total Current Assets CURRENT LIABILITIES

These are the financial statements of the Sir Edmund Hillary Outdoors Education Trust (‘the Trust’). The Trust is a charitable trust registered in New Zealand with the Charities Commission. The Trust is engaged in the business of providing all aspects of outdoor education. The Trust was registered on the 6 August 1973 and commenced trading at that time.

Basis of Reporting These financial statements of the Trust have been prepared in accordance with generally accepted accounting practice in New Zealand being Financial Reporting Standards and Statements of Standard Accounting Practice. The financial statements of the Trust have been prepared on an historical cost basis. The information is presented in New Zealand dollars.

Accounts payable

200,936

120,757

Other creditors and accruals

121,956

139,667

Finance lease – current portion

9,419

3,173

Grants and Donations received in advance

250,159

238,522

Course Prepayments

245,500

273,543

Specific Accounting Policies

Total Current Liabilities

827,970

775,662

In the preparation of these financial statements, the specific accounting policies are as follows:

Working Capital (Deficit)

(542,025)

(476,281)

Total Non-Current Assets

2,984,690

3,098,609

2,984,690

3,098,609

NON-CURRENT LIABILITIES Finance Lease –non-current portion

There have been no changes in accounting policies during the year.

a) Depreciation

NON-CURRENT ASSETS Property, Plant and Equipment

Changes in Accounting Policies

8,898

Motor Vehicles

20-26%

Diminishing Value

Office Equipment

31.2%

Straight-line

4,588

Buildings

Straight-line

8,898

4,588

Centre Equipment

33%

Diminishing Value

2,433,767

2,617,740

Support Craft

26%

Diminishing Value

Plant and Equipment

20-26%

Diminishing Value

2,433,767

2,617,740

Total Non-Current Liabilities NET ASSETS

The Trust has the following classes of Property, Plant & Equipment and depreciation has been calculated to allocate the cost or valuation of the assets over their estimated useful lives, at the following rates:

REPRESENTED BY: Trust Capital Trust Captial

Approved for and on behalf of the Board of Trustees this 7th day of June 2016.

Clive Tilby – Chairman of the Board of Trustees

Tony Gault – Trustee

The above statements should be read in conjunction with the notes to and forming part of the financial statements.

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

Notes to and forming part of the financial statements for the year ended 31 December 2015 (cont’d)

STATEMENT OF ACCOUNTING POLICIES (CONT’D)

2 ) OPERATING EXPENDITURE

b) Goods & Services Tax

Expenses are made up of:

These financial statements have been prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable which are shown inclusive of GST.

Direct Course Expenses

2015

2014

727,551

708,076

2,053,245

2,040,053

Other Direct Course Expenses

15,070

30,137

Total Direct Course Expenses

2,795,866

2,778,266

15,600

18,668

4,468

1,176

51,528

52,635

Centre Indirect Expenses

513,471

540,492

Course Fees

Administration Expenses

15,300

12,716

Course Fees are recognised in the month of attendance at one of the Trust’s outdoor education centres. Interest income is recognised using the effective interest method.

Marketing Expenses

7,881

8,996

15,072

14,410

3,419,187

3,427,359

2015

2014

10,000

8,000

1,712

2,084

Donations and Grants for Income Support

730,433

712,777

Funding and Grants for Assets

100,532

65,956

Course Disbursements Wages and Salaries

c) Taxation No provision for income tax been made, as the Trust is exempt from Income Tax under the provisions of the Income Tax Act 2007.

Other Expenditure

d) Inventories Inventories are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method.

Audit Fees Interest Paid Rates and Rent

e) Revenue

Other Expenses TOTAL OPERATING EXPENDITURE

Grants and Donations Grants and donations are recognised when received, unless specific conditions are attached and repayment of the amount is required where these conditions are not met. In these cases, the grant or donation is treated as a liability until such conditions are met.

3 ) OTHER INCOME

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

g) Leases

Sponsorship

Leases where the Trust assumes substantially all the risks and rewards of ownership are classified as finance leases. The Trust has acquired a motor vehicle by way of finance lease and they are stated at the lower of fair value and present value of the future minimum lease payments, and are depreciated using the same rates as for its other vehicles. Minimum lease payments are apportioned between interest expense and reduction of the outstanding liability. The interest expense component of the finance lease payments is recognised in the statement of financial performance using the effective interest rate method.

Dividends Received

Interest Income

7,517

8,780

Other leases are classified as operating leases. Payments made under the operating leases are recognised in the Statement of Financial Performance on a straight-line basis over the term of the lease.

Insurance Claims

3,350

35,314

11,496

5,024

865,040

837,935

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

Gain/Loss on Sale of Assets

Notes to and forming part of the financial statements for the year ended 31 December 2015 (cont’d)

OTHER INCOME (CONT’D)

5 ) TERM DEPOSITS

Sir Edmund Hillary Outdoors Education Trust acknowledges the donations, grants and sponsorship from the following entities: SSChapman Tripp

SSBlue Sky Community Trust

SSGenesis Energy Ltd

SSKeen Footwear

SSFoundation North

SSThe Southern Trust

SSPub Charity

SSMount Wellington Foundation

SSNew Zealand Community Trust

SSTG Macarthy Trust

SSEd Hillary Charitable Trust

SSDragon Community Trust

SSNorth and South Trust

SSConstellation Community Trust

SSFour Winds Foundation

SSTrillian Trust

SSTrust Waikato

SSWellington Community Trust

SSThe Trusts Community Foundation

SSFirst Light Community Foundation

SSThe Douglas Charitable Trust

SSInfinity Foundation Limited

SSGrassroots Trust

SSFirst Sovereign Trust

SSPegasus Sports Foundation Limited

SSBivouac Outdoors

SSEndeavour Community Foundation

SSEastern and Central Community Trust

2015

2014

201,113

202,318

201,113

202,318

2015

2014

28,302

30,773

28,302

30,773

2015

2014

5,004

2,095

5,004

2,095

Bank of New Zealand On call as at Balance Date

6 ) ACCOUNTS RECEIVABLE

Accounts Receivable

SSBlue Waters Trust

7 ) OTHER RECEIVABLES

4 ) CASH AT BANK Prepayments

2015

2014

BNZ Cheque Account

3,184

177

BNZ Autocall Account

30,446

47,203

2015

2014

300

200

33,935

47,640

17,591

16,555

17,591

16,555

2015

2014

199,736

117,325

1,200

3,432

200,936

120,757

BNZ Events Account Office Float

8) INVENTORIES

Stock on Hand

9) ACCOUNTS PAYABLE

Accounts Payable BNZ VISA Credit Card

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

Notes to and forming part of the financial statements for the year ended 31 December 2015 (cont’d)

10 ) OTHER CREDITORS AND ACCRUALS

13) FINANCE LEASE 2015

2014

PAYE Due

43,700

43,043

Holiday Pay Accrual

39,721

40,299

Sundry Creditors and other Accruals

20,039

22,103

3,225

2,518

15,271

31,704

121,956

139,667

Staff Association Funds GST Payable

2015

2014

Current Portion

9,419

3,173

Non–Current portion

8,898

4,588

18,317

7,761

Current Year

Accumulated

Carrying Value

Depreciation

30,000

4,936,389

163,322

2,366,201

2,570,188

532,290

38,033

408,936

123,354

71,619

8,557

47,263

24,356

Plant and Equipment

388,555

39,729

218,473

170,082

Centre Equipment

579,592

14,090

519,273

60,319

Office Equipment

76,920

5,220

70,529

6,391

Total

6,615,365

268,951

3,630,675

2,984,690

2014

Cost

Current Year

Accumulated

Carrying Value

Toyota Finance Ltd

14) PROPERTY, PLANT AND EQUIPMENT 2015

Cost

11) GRANTS AND DONATIONS RECEIVED IN ADVANCE 2015

2014

38,761

29,809

Grassroots Trust

10,000

First Light Foundation

6,000

4,500

The Trusts Community Foundation

20,000

New Zealand Community Trust

36,142

20,000

4,556

Mana Trust

5,000

Nikau Trust

3,695

Pub Charity

129,214

141,877

16,821

13,741

165

8,400

250,159

238,522

Foundation North

Constellation Community Trust

Southern Trust Trillian Trust

Genesis Education Fund The Lines Company

12) COURSE PREPAYMENTS

Buildings Motor Vehicles Support Craft

Depreciation

30,000

4,925,592

162,543

2,202,879

2,722,713

563,362

38,579

442,907

120,455

71,619

11,564

38,706

32,913

Plant and Equipment

320,810

30,691

178,744

142,066

Centre Equipment

548,277

17,066

505,183

43,094

Office Equipment

133,697

33,453

126,329

7,368

6,593,357

293,896

3,494,748

3,098,609

Land Buildings Motor Vehicles Support Craft

Total

Course Fees received in advance

Land

Sir Edmund Hillary Outdoors Education Trust

2015

2014

245,500

273,543

245,500

273,543

ANNUAL REPORT 2015

Still going strong forty four years later...

Notes to and forming part of the financial statements for the year ended 31 December 2015 (cont’d)

15) THE SIR EDMUND HILLARY OUTDOORS EDUCATION FOUNDATION (‘THE FOUNDATION’) The Sir Edmund Hillary Outdoors Education Foundation (formerly known as The Sir Edmund Hillary Foundation for Young New Zealanders) is a separate private charitable trust which prepares its own financial accounts. Its purpose is to remove the financial barriers for young people to attend a course the Hillary Outdoor Education Centres and to promote Sir Edmunds Hillary’s legacy in the outdoors. The Hillary Outdoors Education Trust acts as custodian for the Trust and is entitled to receive interest income. The Foundation has not sponsored any students to come to a centre in this financial year, however it has provided short-term funding of $60,000 to the Trust for a short period during the year in lieu of transferring interest across. This amount was repaid by financial year end.

16) CONTINGENT LIABILITIES At balance date there are no known contingent liabilities. The Trust has not granted any securities in respect of liabilities payable by any other party whatsoever (2014: $Nil).

17) COMMITMENTS As at 31 December 2015 The Trust had an operating lease in place with Ellerslie Investments Limited – rental agreement for premises in Devonport, Auckland for a term of 2 years from 1 September 2015 to 31 August 2016, with a right of renewal for a further 2 years. In addition, an operating lease with Fuji Xerox was commenced 23rd July 2015 for a term of four years ending July 2019 for two printer copiers in Auckland and Tongariro. 2015

2014

No longer than one year

34,740

27,400

Between one and five years

52,374

10,350

87,114

37,750

ABOVE: OPC Staff pictured at TOPEC in 1990. BELOW: Hillary Outdoors staff at the same location in January 2016.

18) GOING CONCERN The financial statements show a net loss of $183,973 for the year and negative working capital of $542,025 as at 31 December 2015. The Trust has Trust Capital of $2,433,767 with external borrowings of $18,318. The financial statements have been prepared on a going concern basis, which assumes that the Trust will continue in operational existence for the foreseeable future. The Trustees, who continually review the funding needs of the business, consider that in preparing the financial statements they have taken into account all information that could reasonably be expected to be available, including the budgets and cashflow forecast for the 2016 financial year. The key assumptions of these documents are: SSRetaining the 2015 course attendance levels and income for students at Tongariro and Great Barrier furnished in part by Pub Charity 2015 grant and Foundation North grant; SSGrant/donation income achieving 95% of 2015 levels; SSThe Trust controlling its costs such that an operating surplus before depreciation is achieved; and SSForecast capital expenditure is sufficient to maintain the operational capacity of the Trust.

19) EVENTS AFTER REPORTING PERIOD There were no events subsequent to balance date (2014: $Nil).

20) RELATED PARTY TRANSACTIONS There were no related party transactions (2014: $Nil).

Sir Edmund Hillary Outdoors Education Trust

ANNUAL REPORT 2015

SPECIAL THANKS TO OUR SUPPORTERS

AND THE FOLLOWING EVENT SPONSORS Sealink | Wilderness Magazine | Lactic Turkey events | Buff NZ | Injinji Toesocks

Registered office Suite D | Level 1 | 31D Bartley Terrace | Devonport | Auckland 0624 Charities Commission Registration, CC26731