Life Unlimited Charitable Trust
Celebrating 40 years
Annual Report 2018-2019
Life Unlimited Charitable Trust Life Unlimited’s purpose is to enhance wellbeing by enabling people in New Zealand to live the life they choose through a range of health and disability services, advice and equipment
How did we achieve that in 2018-2019 and make a difference?
Mobility Centre Supporting people to live independently through the provision of daily living aids and equipment alongside sound product advice and information. Life Unlimited Store/Mobility Centre highlights
• • • • •
• Purchased Mobility Centre store Lower Hutt in October 2018. • Rebranded four Life Unlimited stores as Mobility Centre. Prepared business case for Hastings store. Increase in email newsletter subscribers by 200% to 13,353. Increased visits to our website eight-fold to 403,712. 1478 people received information and advice in our stores. We sold 49,409 items of equipment, 2111 of them online. and transacted 21,107 equipment purchases or hire transactions.
Te Hauora o Ngati Haua clients from left: Hine-Love Thompson, Te Wakaiti Manaia (on scooter), Te Ao Marama Waaka and Martha King-Tamihana.
Hearing Therapy A national contracted service providing personalised support and community education to improve the quality of life for people living with hearing loss. We saw 4806 clients and conducted 6334 consultations. 98% Reported that the consultation helped them. 72-84% Clients reported increased ability to cope with their hearing loss in specified areas of daily living activities. 56% Female. Over 65. 55% 27% Live rurally. 18% Maֿ ori. 17% Clients received more than one consultation. 8% Pasifika. 1
Hearing therapist Cheryl Scott, left, with Luana Waru.
Altogether Autism A contracted service providing quality, evidence-based and timely information and support to autistic people, their families, support workers and anyone interested.
•
2690 information requests.
•
96% of requesters rated the information as useful.
•
New: Live chat launched in September 2018, with 226 information requests received via Live Chat in the first year.
•
Number of website users 72,816, up 28%.
•
Mailing list 8976, 18% increase.
•
Website page views 196,989, up 35% comprising 95,093 sessions, 2.07 pages per session with average time spent per session of 1 minute 50.
•
461 people attended 20 network meetings with 100% positive feedback.
•
Launched By Autistics, For Autistics network meetings.
•
2 Altogether Autism Journals 4000 hard copies both editions.
•
Email journal subscribers up from 6821 to 7354.
PRISM busiest year ever • •
Altogether Autism team: l-r Laetitia McKenzie, Joanne Lawless,Jamie-Leigh Timoti, Sanam Bagherian, Amanda Phillips, Catherine Trezona.
42 days nationwide. 575 participants (up 9.7%).
SELO (Strengthening Early Learning Opportunities) Delivered in Auckland, Waikato and Cromwell Two programmes:
SELO facilitators Cat Noakes-Duncan and Martyn Matthews with participants in Cromwell.
1. Takiwaֿtanga: Learning in my own time and space 142 participants. 2. Understanding neurodiverse learners in early childhood environments 65 participants.
2
Community Supporting people to live full active lives as participants in their community - providing support to meet the expectations and needs of individuals. •
720 people participated in our services within the Waikato.
•
Supported 60 people through transitioning from school, work readiness and work experience.
•
95 people involved in fitness activities - either in Life Fit and Sport Opportunity After School.
•
90% of our clients say Life Unlimited helped them participate in the community to their desired level.
•
Supported 42 families with Enabling Good Lives (EGL) to live the life they choose.
•
More than 60 people access our multi-sensory environment and we trained 72 people with sensory training.
Freedom Nathan, right, with her uncle, is living her dream thanks to Enabling Good Lives.
Information A contracted service in Waikato, Bay of Plenty, Lakes and Tairaֿwhiti providing information to assist disabled people and families to navigate the system and have information for good decision-making. • • •
We interacted with 5971 people for provision of Information. We supported 203 enquiries on Live Chat. We published 77 articles to our online Information Hub.
Lindsay Harvey: How not to retire gracefully and remain active after 65, featured in one of the Online Information Hub articles. 3
Needs Assessment Service Coordination (NASC) A contracted service in Hutt Valley and Tairaֿ whiti (Gisborne) regions for NASC facilitating access to community activites and disability services, enabling disabled people and families to have appropriate support to meet the expectations and needs of individuals.
Hutt Valley
Tairֿawhiti
429
82
$17.7 million
$7.58 million
1325
351
New NASC referrals 511 new disabled people referred to us Disability supports facilitated
Active clients as at 30 June 2019 NASC manager Karen Wilton, (right) and Hutt City councillor Glenda Barrett, (left) at the NASC Christmas celebrations.
Facilitated disability support for more than 1600 people
Local Area Coordination (LAC) Local Area Coordination is all about anyone with a disability having a good life in the community. It is free for anyone with a disability in the Hutt Valley. Co-ordinators spend time with clients and whaֿ nau to learn about what they want for their life, then work to achieve those dreams, plan for and pursue that life. • •
As at 30 June there were 67 clients + 85 people actively working with LAC. Since LAC commenced operation in 2014 until end of financial year worked with a total of 226 clients + 580 people.
In each case the first figures are individualised disability info queries and the second are in-depth client work. They are individual client numbers not consults (e.g. some clients we may have met several times in any given year).
4
Lynne, Suse and Maurice come together to celebrate the client/ community partnerships that are achieved through LAC's work.
LIFE UNLIMITED CHARITABLE TRUST DIRECTORY FOR THE YEAR ENDED 30 JUNE 2019
NATURE OF BUSINESS:
Disability Services Provider
CHARITIES COMMISSION REGISTRATION NUMBER:
CC26090
ADDRESS:
20 Palmerston Street Hamilton
TRUSTEES:
John Dobson (Chairman) Bruce Tocker Sarah Verran (Appointed on 28 May 2019) Lindsay Cumberpatch Tiffiney Perry Anthea Simcock (Ceased on 26 March 2019)
KAUMATUA ADVISORY GROUP:
Tom Wheke Rangi Manihera Charles Tahana
REGISTERED OFFICE:
20 Palmerston Street Hamilton
INDEPENDENT AUDITORS:
Baker Tilly Staples Rodway Audit Limited Chartered Accountants Hamilton
SOLICITORS:
Gurnell Harrison Lawyers Hamilton James & Wells Hamilton
BANKERS:
Westpac and BNZ Bank Hamilton
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LIFE UNLIMITED CHARITABLE TRUST STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSES FOR THE YEAR ENDED 30 JUNE 2019 Notes Revenue from Non-Exchange Activities Donations Grant revenue Revenue from Exchange Activities Government Contract Revenue Expenses Reimbursed Interest Income Dividend Income Realised Gain on Sale of Investment Sundry Income Rental Income Gain on disposal of property, plant and equipment Store Trading Sales
16
Total Revenue Expenses Advertising and Promotion Audit Fees Bad Debts Bank fees and Interest Sub Contractual Services Depreciation Electricity and Heating General Expenses Grants and Donations Expenses Amortisation Expense Insurance and Accident Compensation levy Loss on disposal of property, plant and equipment Photocopying, Postage, Printing and Stationery Rent and Rates Repairs and Maintenance Security Telephone, Tolls and Fax Travel, Accommodation and Training Vehicle Expenses Wages and Salaries Store Trading Expenses Total Expenses Total Surplus/(Deficit) Other Comprehensive Revenue and Expenses Gain on Revaluation of Available for Sale Financial Assets Total Comprehensive Revenue and Expenses Attributed to the Trust
2
2019 $ 527 10,822 11,349
2018 $ 5,939 10,878 16,817
5,354,006 17,000 25,913 7,893 9,641 875,296 50,663 4,672 2,667,978 9,013,062
5,985,455 18,359 46,299 11,923 6,619 294,319 38,008 22,538 1,699,930 8,123,450
9,024,411
8,140,267
111,428 16,604 217 20,978 759,721 296,920 35,720 156,346 52,484 25,000 51,429 4,966 103,124 445,867 61,157 3,906 140,721 263,392 70,462 4,615,367 1,461,105
123,309 18,386 707 14,134 968,919 293,100 33,938 134,664 46,325 25,000 51,423 2,795 103,726 374,353 48,375 3,545 141,551 287,335 67,026 4,554,626 976,831
8,696,914 327,497
8,270,068 (129,801)
16,888
62,778
344,385
(67,023)
The accompanying notes form part of these financial statements
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LIFE UNLIMITED CHARITABLE TRUST STATEMENT OF CHANGES IN NET ASSETS/EQUITY FOR THE YEAR ENDED 30 JUNE 2019
Fair Value Reserve
Retained Surplus
Total Equity
Opening Balance 1 July 2018
70,779
3,416,278
3,487,057
Total Comprehensive Revenue and Expenses for the Year
16,888
327,497
344,385
87,667
3,743,775
3,831,442
8,001
3,546,079
3,554,080
62,778
(129,801)
(67,023)
70,779
3,416,278
3,487,057
Closing Equity 30 June 2019 Opening balance 1 July 2017 Total Comprehensive Revenue and Expenses for the Year Closing Equity 30 June 2018
The accompanying notes form part of these financial statements.
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LIFE UNLIMITED CHARITABLE TRUST STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2019 Notes
2019 $ 584,230 805,554 348,027 607,473 284,945
2018 $ 901,874 784,447 6,378 383,569 256,876
2,630,229
2,333,144
267,776 1,056,660 825,000
859,830 1,101,551 25,000
2,149,436
1,986,381
4,779,665
4,319,525
683,664 264,559
569,688 262,780
948,223
832,468
Total Net Assets
3,831,442
3,487,057
Net Assets Retained Surplus Fair Value Reserve
3,743,775 87,667
3,416,278 70,779
3,831,442
3,487,057
Current Assets Cash and Cash Equivalents Receivables from Exchange Transactions Prepayments and Accrued Income Inventories Investments
3 4 6
Non-Current Assets Investments Property Plant and Equipment Intangible Asset
6 7 8, 10
Total Assets Current Liabilities Trade and Other Creditors Employee Entitlements
9
Total Net Assets Attributed to the Trust
Signed for and on behalf of the Board of Trustees who authorised these financial statements for issue on 20th April 2020. Chairman …………………………………………….
Trustee …………………………………
Date ... 28 April 2020 ...................................... .Date ………………………………… ………………………………………. The accompanying notes form part of these financial statements.
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LIFE UNLIMITED CHARITABLE TRUST STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2019
Notes
2019 $
2018 $
11,349 8,604,865 22,283 30,535 7,893 8,676,925
16,817 8,119,865 46,299 (12,831) 0 8,170,150
(8,279,527) (20,978) 8,300,505
(8,154,774) (14,134) 8,168,908
376,420
1,242
4,500
33,367
(165,039) (1,124,038)
(264,633) -
(1,284,578)
(231,266)
590,514
645,753
Net cash flow from financing activities
590,514
645,753
Net increase (decrease) in cash and cash equivalents
(317,644)
415,729
901,874
486,145
584,230
901,874
Cash flow from operating activities Receipts Receipts from non-exchange transactions Receipts from exchange transactions Interest received Net GST Received Dividend Received Payments Payments to suppliers and employees Interest and bank fees paid
Net cash flow from operating activities
Cash flow from investing activities Receipts Proceeds from Sale of Property Plant and Equipment Payments Purchase of Property Plant and Equipment through Acquisition of mobility center (net of cash acquired) Net cash flow from investing activities
Cash flow from financing activities Cash was provided from: Term Deposit withdrawal
Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June
3
The accompanying notes form part of these financial statements.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019 REPORTING ENTITY Life Unlimited Charitable Trust (the “Trust”) is a Charitable Trust registered under the Charitable Trust Act 1957 and registered under the Charities Act 2005. The Trust is domiciled in New Zealand. The financial statements are presented for the year ended 30 June 2019. The Trust provides a range of health and disability services, advice and equipment, both regionally and nationally. The Trust is a not for profit organisation committed to enhancing wellbeing by enabling people to live the life they choose. Services are funded by the Ministry of Heath, the Ministry of Social Development, and directly by Life Unlimited. These financial statements have been approved and were authorised for issue by the Board of Trustees on 29th October 2019. The financial statements of the Trust have been prepared on a going concern basis. STATEMENT OF COMPLIANCE The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ GAAP”). They comply with Public Benefit Entity International Public-Sector Accounting Standards (“PBE IPSAS”) and other applicable financial reporting standards as appropriate that have been authorised for use by the External Reporting Board for Not-For-Profit entities. For the purposes of complying with NZ GAAP, the Trust is a public benefit not-for-profit entity and is eligible to apply Tier 2 Not-For-Profit PBE IPSAS on the basis that it does not have public accountability and it is not defined as large. The Trust has elected to report in accordance with Tier 2 Not-For-Profit PBE Accounting Standards and in doing so has taken advantage of all applicable Reduced Disclosure Regime (“RDR”) disclosure concessions. This decision results in the Trust not preparing a Statement of Service Performance for both reporting periods. CHANGES IN ACCOUNTING POLICY There have been no changes in accounting policies for the year ended 30 June 2019. NOTE 1:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies used in the preparation of these financial statements as set out below have been applied consistently to both years presented in these financial statements. (a) Base of Measurement These financial statements have been prepared on the basis of historical cost, except for the available for sale investments, which have been measured at fair value.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 (b) Functional and Presentational Currency The financial statements are presented in New Zealand dollars ($), which is the Trust’s functional currency. All values are rounded to the nearest dollar, unless otherwise stated. (c) Business Combination and Goodwill Business combinations are accounted for using the acquisition method as at the acquisition date, which is the date on which control is transferred to the Trust. The Trust controls an entity when it has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The Trust measures goodwill at the acquisition date as the aggregate of the following: -
The fair value of consideration transferred The recognised amount of any minority interests in the acquire, and The fair value of any pre-existing equity interest in the acquire
-
The fair value of the net identifiable assets acquired and liabilities assumed.
Less:
The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment – refer to note (3f). Any gain on bargain purchase is recognised in surplus or deficit immediately. Transaction costs related to a business combination incurred by the Trust are expensed in surplus or deficit as incurred. The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in surplus or deficit. Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not subsequently remeasured and settlement is accounted for within net assets/equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in surplus or deficit. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Trust’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquire are assigned to those units. Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 (d) Revenue Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Trust and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received. The following specific recognition criteria must be met before revenue is recognised. Revenue from Non-Exchange Transactions Grant Revenue Grant revenue includes grants given by other charitable organisations, philanthropic organisations and businesses. Grant revenue is recognised when the conditions attached to the grant has been complied with. Where there are unfulfilled conditions attaching to the grant, the amount relating to the unfulfilled condition is recognised as a liability and released to revenue as the conditions are fulfilled. Revenue from Exchange Transactions Store Sales Revenue Revenue from the sale of goods at the Life Unlimited Stores is recognised when the significant risks and rewards of ownership have been transferred to the buyer on delivery of the goods and when the amount of revenue can be measured reliably, and it is probable that the economic benefits or service potential associated with the transaction will flow to the Trust. Government Contracts Revenue Revenue from government contracts relates to income received from Ministry of Health (MoH) and Ministry of Social Development (MSD) and is provided as funding for various services the Trust provides relating to disability support and assessments. Revenue is recognised in the period the services are provided. Interest Revenue Interest revenue is recognised as it accrues, using the effective interest method. (e) Financial Instruments Financial assets within the scope of NFP PBE IPSAS 29 Financial Instruments: Recognition and Measurement are classified as financial assets at fair value through surplus or deficit, loans and receivables, held-to-maturity investments or available-for-sale financial assets. The classifications of the financial assets are determined at initial recognition. The category determines subsequent measurement and whether any resulting income and expense is recognised in surplus or deficit or in other comprehensive revenue and expenses. The Trust’s financial assets are classified as loans and receivables or as available for sale financial assets. The Trust’s financial assets include: cash and cash equivalents, short-term deposits, receivables from exchange transactions, and investments. All financial assets except for those at fair value through surplus or deficit are subject to review for impairment at least at each reporting date. Financial assets are impaired when there is any objective evidence that a financial asset or group of financial assets is impaired. Different criteria to determine impairment are applied for each category of financial assets, which are described below.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, these are measured at amortised cost using the effective interest method, less any allowance for impairment. The Trust’s cash and cash equivalents, receivables from exchange transactions and receivables from non-exchange transactions fall into this category of financial instruments. Available for sale financial assets The Trust’s available for sale financial assets (AFS) include equity investments and debt securities. Equity Investments classified as AFS are those that are neither classified as held for trading nor designated at fair value through surplus or deficit. Debt securities in this category are those that are intended to be held for an indefinite period of time and that may be sold in response to needs for liquidity or in response to changes in the market conditions. After initial measurement, AFS financial investments are subsequently measured at fair value with unrealised gains or losses recognised in other comprehensive revenue and expenses and accumulated in the AFS reserve until: ➢ ➢
the investment is derecognised, at which time the cumulative gain or loss is recognised in other operating income, or; the investment is determined to be impaired, when the cumulative loss is reclassified from the AFS reserve to the statement of financial performance in finance costs.
Interest earned whilst holding AFS financial investments is reported as interest income using the effective interest rate method. Impairment of financial assets The Trust assesses at the end of reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that loss event has an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. For financial assets carried at amortised cost, if there is objective evidence that an impairment loss on loans and receivables carried at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in the surplus or deficit for the reporting period. Available for sale financial assets For AFS financial investments, the Trust assesses at each reporting date whether there is objective evidence that an investment or a group of investments is impaired. In the case of equity investments classified as AFS, objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost. ‘Significant’ is evaluated against the original cost of the investment and ‘prolonged’ against the period in which the fair value has been below its original cost.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 When there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognised in surplus or deficit – is removed from net assets/equity and recognised in surplus or deficit. Impairment losses on equity investments are not reversed through surplus or deficit; increases in their fair value after impairment are recognised in other comprehensive revenue and expense. In the case of debt instruments classified as AFS, the impairment is assessed based on the same criteria as financial assets carried at amortised cost. However, the amount recorded for impairment is the cumulative loss measured as the difference between the amortised cost and the current fair value, less any impairment loss on that investment previously recognised in surplus or deficit. In determining whether there are any objective evidence of impairment, the Trust first assesses whether there is objective evidence of impairment for financial assets that are individually significant, and individually or collectively significant for financial assets that are not individually significant. If the Trust determines that there is no objective evidence of impairment for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment for impairment. If in a subsequent period, the amount of the impairment loss decreases, and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed by adjusting the allowance account. If the reversal results in the carrying amount exceeding its amortised cost, the amount of the reversal is recognised in surplus or deficit. Financial liabilities The Trust’s financial liabilities include trade and other creditors. All financial liabilities are initially recognised at fair value (plus transaction cost for financial liabilities not at fair value through surplus or deficit) and are measured subsequently at amortised cost using the effective interest method except for financial liabilities at fair value through surplus or deficit.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 (f) Impairment of non-financial assets The carrying amount of the Trust’s non-financial assets, including inventories, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill and indefinite life intangible assets are tested annually for impairment. An impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount. The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows (for cash-generating assets) or future remaining service potential (for non-cash-generating assets) are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGU’s. CGU’s to which goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs’ that are expected to benefit from the synergies of the combination. Impairment losses are recognised in surplus or deficit. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro rata basis. An impairment loss in respect of goodwill cannot be reversed in future periods. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. (g) Cash and Cash Equivalents Cash and cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (h) Inventories Inventories held for consumption in the provision of services that are not sold on a commercial basis are measured at the lower of cost and net realisable value. Inventories held for sale on a commercial basis are measured at the lower of cost and net realisable value.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 For inventory that was acquired through non-exchange transactions, the cost of the inventory is its fair value at the date of acquisition. For inventory held for distribution or consumption in providing goods and services to be distributed at no charge or for nominal charge, these are measured at cost adjusted for any loss of service potential. (i) Property, Plant and Equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. Where an asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of acquisition. Depreciation is charged on a straight-line basis over the useful life of the asset, except for land. Land is not depreciated. Depreciation is charged at rates calculated to allocate the cost or valuation of the asset less any estimated residual value over its remaining useful life: Buildings Office Equipment Motor Vehicles
1-33 years 1-33 years 5-7 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and are adjusted if there is a change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset. (j) Leases Payments on operating lease agreements, where the lessor retains substantially the risk and rewards of ownership of an asset, is recognised as an expense on a straight-line basis over the lease term. (k) Income Tax Due to its charitable status, the Trust is exempt from income tax. (l) Intangible Assets Intangible assets are initially measured at cost, except for goodwill, which is measured in accordance with business combination accounting – refer to note (3c). Following the initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The Trust’s intangible asset that are measured at cost includes a customer base for mobility scooters. The useful life of this intangible asset is assessed as finite being 3 years from initial recognition. Intangible assets with finite useful lives are amortised.
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 Amortisation is recognised in surplus or deficit on a straight-line basis over the estimated useful lives. The estimated useful life of the customer base is 3 years. Gains or losses arising from de-recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive revenue and expense when the asset is derecognised. Amortisation method, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate. (m)
Significant Judgements and Estimates
In preparing the financial statements, the Trust is required to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. The uncertainty from these assumptions and estimates could result in outcomes that may result in a material adjustment to the carrying amount of the asset or liability. Judgements In the process of applying the Trust’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:
Impairment of available-for sale financial assets
In determining the amount of impairment of available-for sale financial assets, the Trust has made judgements in identifying financial assets whose decline in fair value below cost is considered “significant” or “prolonged”. A significant decline is assessed based on the historical volatility of the share price. The higher the historical volatility, the greater the decline in fair value required before it is likely to be regarded as significant. A prolonged decline is based on the length of time over which the share price has been depressed below cost. A sudden decline followed by immediate recovery is less likely to be considered prolonged compared to a sustained fall of the same magnitude over a longer period. Generally, the Trust considers a decline in fair value greater than 25% is likely to be considered significant. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Trust based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Trust. Such changes are reflected in the assumptions when they occur.
Impairment of non-financial assets – cash-generating assets (Goodwill)
Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next financial year and estimated cashflow thereafter. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. NOTE 2:
AUDITOR’S REMUNERATION
Baker Tilly Staples Rodway Audit Limited provides audit services to the Trust. The total amount of the audit expense for the year was $16,604. (2018: $18,386) NOTE 3:
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include the following components: 2019 $ 345,125 28,066 211,039 584,230
Westpac- Current Accounts Westpac- $USD Account Westpac -Online Saver Accounts
2018 $ 89,601 91,436 720,837 901,874
Life Unlimited Charitable Trust has a business Mastercard facility with Westpac Bank with a limit of $20,000, (2018: $20,000).
NOTE 4:
PREPAYMENTS AND ACCRUED INCOME
Prepayments Accrued interest income and other receivables Accrued receivable for Manawanui InCharge Ltd proceeds TOTAL PREPAYMENTS The Trust disposed of its investment in Manawanui InCharge Ltd during the 2019 financial year. The sale was finalised in July 2019 and the trust received the distribution subsequently.
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2019 $ 5,611 691 341,725 348,027
2018 $ 2,747 3,631 6,378
LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 NOTE 5:
CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES
The carrying amounts of financial instruments presented in the statements of financial position relate to the following categories of assets and liabilities: 2019 $
2018 $
584,230 342,416 805,554 1,732,200
901,874 784,447 1,686,321
377,429 175,293 552,722
691,897 424,809 1,116,706
583,798 583,798
491,093 491,093
2019 $ 257,232 27,713 92,484 26,305 42,229 38,984 67,774
2018 $ 358,245 41,876 291,776 49,225 125,447 92,864 157,273
Total Investments
552,721
1,116,706
Current Portion Term Portion
284,945 267,776 552,721
256,876 859,830 1,116,706
Financial Assets Loans and Receivables Cash and Cash Equivalents Other receivables (excl. prepayments) Receivables from Exchange Transactions Financial Assets at Fair Value – Available for Sale Term Deposits and Bonds Equities Financial Liabilities at Amortised Cost Trade and Other Creditors
NOTE 6:
INVESTMENTS
The investments of the Trust include the following components:
Term Deposits Cash held for Investment Fixed Interest Bonds Property New Zealand Equities Australian Equities Global Equities
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 NOTE 7:
PROPERTY PLANT AND EQUIPMENT Land
Buildings
Office Equipment
Motor Vehicles
Total
2019 Cost Accumulated Depreciation Net Book Value
26,620 26,620
1,335,557 854,605 480,952
1,392,682 1,027,828 364,854
726,551 542,317 184,234
3,481,410 2,424,750 1,056,660
2018 Cost Accumulated Depreciation Net Book Value
26,620 26,620
1,313,294 806,752 506,542
1,191,221 896,165 295,056
740,805 467,472 273,333
3,271,940 2,170,387 1,101,551
Reconciliation of the carrying amount at the beginning and end of the period: Land Opening Balance Additions Additions – through Business combination Disposals Depreciation Closing Balance
Buildings
Office Equipment
26,620 -
506,542 3,849 18,414
295,056 170,412 63,099
273,333 5,305
1,101,551 174,261 86,818
26,620
47,853 480,952
5,578 158,135 364,854
3,472 90,932 184,234
9,050 296,920 1,056,660
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Motor Vehicles
Total
LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 NOTE 8:
INTANGIBLE ASSETS
In April 2016 the Trust purchased a customer base relating to buyers of mobility scooters from Mobility Equipment Services (MES) for consideration of $75,000. This customer base has been recognised in these financial statements as an intangible asset amortised over 3 years, which is the period of an earnout payment payable to MES. As at 30 June 2019, the intangible asset has been fully amortised. On 5 October 2018, the Trust acquired a mobility centre for the consideration of $1.124m. The acquisition resulted in Goodwill of $825,000. Opening Balance Goodwill recognised on business combination Amortisation for the period Closing Balance
NOTE 9:
2019 25,000 825,000 (25,000)
2018 50,000 (25,000)
825,000
25,000
TRADE AND OTHER CREDITORS 2019 $ 293,813 40,882 149,630 99,560 99,779 683,664
Trade Creditors Deposit Held Other payroll liabilities Accrued expenses GST payable TOTAL
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2018 $ 243,365 7,932 128,863 110,933 78,594 569,687
LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 NOTE 10:
BUSINESS COMBINATION
On 5 October 2018 the trust acquired a mobility centre, key details are described below. (i)
Net identifiable assets acquired
The fair value of the identifiable assets and liabilities of the mobility centre as the date of acquisition were: Assets
Fair value at acquisition date $ 212,220 86,818 298,038 ______298,038 825,000 1,124,038
Inventories Property, plant and equipment Less: Liabilities Net identifiable assets acquired Add: Goodwill Net assets acquired
The fair values above represent the full and final amounts of each item in respect of the business combination accounting. Therefore none of the amounts above represent ‘provisional amounts’ that would be subsequently finalised during the measurement period (being the period lasting no more than one year from acquisition date). (ii)
Consideration transferred The fair value of the consideration transferred included the following
Cash and cash equivalent Total consideration transferred (iii)
At acquisition date $ 1,124,038 1,124,038
Goodwill
There were no adjustments to goodwill in the current period relating to business combinations in previous periods. Goodwill in relation to the business combinations was recognised as follows:
Total consideration transferred (fair value) Less: Net identifiable assets acquired (fair value) Goodwill
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At acquisition date 1,124,038 (298,038) 825,000
LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 NOTE 11:
OPERATING LEASE COMMITMENTS – TRUST AS A LESSEE
The Trust has entered into commercial property leases on regional offices and retail space at year end. The leases have remaining term of between one and six years. Future minimum rental payable under non-cancellable operating lease as at 30 June 2019 and 2018 are as follows: 2019 2018 $ $ Not later than one year 245,614 243,429 Later than one year and not later than two years 324,604 124,673 Later than two years and not later than five years 19,655 18,000 Later than five years Total Leases NOTE 12:
589,873
392,102
CAPITAL COMMITMENTS
There are no material capital commitments at balance date (2018: Nil) NOTE 13:
CONTINGENT ASSETS AND LIABILITIES
There are no contingent assets or liabilities at the reporting date (2018: Nil) NOTE 14:
RELATED PARTIES
Related Parties- transactions and balances The key management personnel are classified as related parties as defined by PBE IPSAS20 Related Party Disclosures and includes members of the Board of Trustees (being the governing body of the trust), Chief Executive Officer, HR & Administration Manager, Community Manager, Service & Development Manager – NASC, Service & Development Manager – Hearing, Service & Development Manager – Stores, Communications Manager, National Manager Altogether Autism, Finance Manager. Transactions with related parties during the reporting period: John Dobson is the Chairman of the Board of Life Unlimited and until June 2018 was a partner of PwC. PwC was paid for professional services during the current year of $30,125 (2018: $10,463). Tiffney Perry is a Trustee of Life Unlimited and is the Co-Chair of Parafed Waikato. During the year ended 30 June 2019 Life Unlimited paid Parafed Waikato $11,891 being a grant of $11,500 and services totalling $391 (2018: $10,000).
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LIFE UNLIMITED CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 30 JUNE 2019 NOTE 14:
RELATED PARTIES (Cont.)
Transactions with Key Management Personnel during the reporting period is as follows: 2019 $ 839,590 7.60
Total Remuneration Number of people
2018 $ 696,167 4.28
The only transactions with the Board of Trustees (in their capacity as Trustees) are specified meeting fees for participation in scheduled Board meetings. Total meeting fees for the period were $17,600 (2018: $17,236). NOTE 15:
EVENT SUBSEQUENT TO BALANCE DATE
The Boards of Life Unlimited and Enrich+ Trust (a disability provider based in Te Awamutu) have resolved to jointly form a shared services entity to provide corporate services for the two organisations. It is anticipated that over time this arrangement will bring greater value and efficiency to Life Unlimited and will be cost neutral in the year of establishment, being 2019/20. (2018: Nil) NOTE 16:
SUNDRY INCOME
Capital Receipt from disposal of interest in Manawanui InCharge Ltd Invoiced Hours Other Income Management Services TOTAL
2019 $ 341,725 21,802 511,769 875,296
2018 $ 12,779 273,140 8,400 294,319
The Trust was one of the Shareholders in Manawanui InCharge Ltd (MIC). MIC was held as an associate investment and held at nil value. Life Unlimited received consideration of $341,725 for its share in MIC which resulted in sundry income being recorded as the capital receipt proceeds from the disposal of the same amount.
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LIFE UNLIMITED CHARITABLE TRUST SUPPLEMENTARY INFORMATION (UNAUDITED) FOR THE YEAR ENDED 30 JUNE 2019 CHARITABLE SERVICES The net surplus / (deficit) for the period included charitable services as follows: 2019 (UNAUDITED)
2018 (UNAUDITED)
Life Unlimited Programmes Multi Sensory Environment “Best Buddies” Positive Action Course Participation Programmes & Friendship Groups Health Care Days
29,965 17,599 10,973 21,343 4,000
37,572 17,386 20,619 33,033 10,000
Support for Other Programmes Parent to Parent Sibling Camp Parafed Fitness Revolution Enrich+ Spectrum Energy Programme Other donations and sponsorships
22,000 11,500 15,000 2,535
15,000 10,000 15,000 3,216
134,915
161,826
Total Charitable Services A summary of 2019 charitable services is as follows: Life Unlimited Programmes Multi Sensory Environment “Best Buddies” Positive Action Course
Participation programme - Life Fit Participation programme - After School Sports Opportunities Health Care Days Friendship Groups
Description A sensory therapy that encourages learning new skills and relaxation. Located at Life Unlimited, Hamilton. A programme to “buddy up” disabled youth with peers in high schools. Run in conjunction with Best Buddies International. A funded programme that assists people with disabilities to make positive changes in their lives through selfdevelopment. Life Unlimited provides additional unfunded courses. A programme run by Life Unlimited for people with intellectual disability who want to be more active. A programme for children and young people with disabilities along with their families so that students can experience fundamental skills, fitness, confidence and social interaction in a safe environment. Providing one day information and awareness programmes for carers in rural and coastal communities. Supporting people to expand on their current relationships through building and developing social skills and relationship building skills.
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LIFE UNLIMITED CHARITABLE TRUST SUPPLEMENTARY INFORMATION (continued) FOR THE YEAR ENDED 30 JUNE 2019 Support for Other Programmes Parent to Parent Sibling Camp Parafed Fitness Revolution Enrich+ Spectrum Energy Programme
Description A sibling support programme run by Parent to Parent for children and teenagers who have brothers and sisters with special needs. A programme run by Parafed Waikato for people with physical and visual impairments who want to be more active. A programme run by Enrich+ to support individuals on the autism spectrum to build their confidence, skills and relationships. The programme includes groups for youth (Youth+, Lego Club), a school holiday programme, 1:1 mentoring, training, and scholarships.
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Baker Tilly Staples Rodway Audit Limited Level 4, 354 Victoria Street PO Box 9159, Hamilton 3240 New Zealand
T: F: E: W:
+64 7 834 6800 +64 7 838 2881 waikato@bakertillysr.nz www.bakertillysr.nz
INDEPENDENT AUDITOR’S REPORT To the Trustees of Life Unlimited Charitable Trust Report on the Audit of the Financial Statements
Qualified Opinion We have audited the financial statements of Life Unlimited Charitable Trust ('the Trust') on pages 2 to 20, which comprise the statement of financial position as at 30 June 2019, and the statement of comprehensive revenue and expenses, statement of changes in net assets/equity and statement of cash flows for the year then ended, and notes to the financial statements, including significant accounting policies. In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the accompanying financial statements present fairly, in all material respects, the financial position of the Trust as at 30 June 2019, and its financial performance and its cash flows for the year then ended in accordance with Public Benefit Entity simple format reporting standards for accrual accounting by not-for-profit public benefit entities ('PBE SFR-A (NFP)'). Our report is made solely to the Trustees of the Trust. Our audit work has been undertaken so that we might state to the Trustees of the Trust those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trustees of the Trust as a body, for our audit work, for our report or for the opinions we have formed.
Basis for Qualified Opinion The statement of financial position includes inventory of $607,473 held at 30 June 2019, including inventory held in a new store acquired during the year of $220,814. We were unable to obtain sufficient appropriate audit evidence in respect of the valuation and completeness of inventory held in the new store. Misstatements arising from incorrect valuation of inventory will also impact store cost of sales. Consequently, we were unable to determine whether any adjustment to this amount was necessary.
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Trust in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (‘IESBA Code’), and we have fulfilled our other ethical responsibilities in
23 Baker Tilly Staples Rodway Audit Limited, incorporating the audit practices of Christchurch, Hawkes Bay, Taranaki, Tauranga, Waikato and Wellington. Baker Tilly Staples Rodway Audit Limited is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities.
accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. Other than in our capacity as auditor we have no relationship with, or interests in, Life Unlimited Charitable Trust.
Responsibilities of the Trustees for the Financial Statements The Trustees are responsible on behalf of the Trust for the preparation and fair presentation of the financial statements in accordance with PBE Standards RDR, and for such internal control as the Trustees determine is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible on behalf of the Trust for assessing the Trust’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Trust or to cease operations, or have no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at: https://xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-8/ The engagement partner on the audit resulting in this independent auditor’s report is G Ghuman.
BAKER TILLY STAPLES RODWAY AUDIT LIMITED Hamilton, New Zealand 28 April 2020
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www.lifeunlimited.net.nz