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Financials
Independent Auditor’s Report
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Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
To the board members of Netball New Zealand Incorporated
REPORT ON THE SPECIAL PURPOSE FINANCIAL STATEMENTS
Opinion
In our opinion, the accompanying special purpose financial statements of Netball New Zealand Incorporated (the group), comprising Netball New Zealand Incorporated (NNZ) and its subsidiaries on pages 88 – 91:
i. present, in all material respects the group’s financial position as at 30 November 2019 and its financial performance and movement in equity for the year ended on that date in compliance with accounting policies on page 89.
We have audited the accompanying special purpose financial statements which comprise:
• the statement of financial position as at 30 November 2019;
• the statements of financial performance and movements in equity for the year then ended; and • notes, including a summary of significant accounting policies and other explanatory information. We are independent of the group 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 accordance with these requirements and the IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor’s responsibilities for the audit of the special purpose financial statements section of our report.
Our firm has also provided taxation services to the group. Subject to certain restrictions, partners and employees of our firm may also deal with the group on normal terms within the ordinary course of trading activities of the business of the group. These matters have not impaired our independence as auditor of the group. The firm has no other relationship with, or interest in, the group.
Emphasis of matter – Basis of Accounting
Without modifying our opinion, we draw attention to Note 1 to the special purpose financial statements, which describes the basis of accounting. The special purpose financial statements are prepared in accordance with the accounting policies set out on page 89. As a result, the special purpose financial statements may not be suitable for another purpose.
Other information
The Management, on behalf of the group, are responsible for the other information included in the entity’s Annual Report. Our opinion on the special purpose financial statements does not cover any other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the special purpose financial statements our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the special purpose financial statements or our knowledge obtained in the audit or otherwise appears materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Use of this independent auditor’s report
This independent auditor’s report is made solely to the board members as a body. Our audit work has been undertaken so that we might state to the board members those matters we are required to state to them in the independent 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 board members as a body for our audit work, this independent auditor’s report, or any of the opinions we have formed.
The Management, on behalf of the incorporated society, are responsible for:
• the preparation of the consolidated special purpose financial statements in accordance with the accounting policies set out on page 89;
• implementing necessary internal control to enable the preparation of a special purpose set of financial statements that is fairly presented and free from material misstatement, whether due to fraud or error; and • assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate or to cease operations, or have no realistic alternative but to do so.
Our objective is:
• to obtain reasonable assurance about whether the special purpose financial statements as a whole are free from material misstatement, whether due to fraud or error; and
• to issue an independent 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. They 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 special purpose financial statements.
A further description of our responsibilities for the audit of these special purpose financial statements is located at the External Reporting Board (XRB) website at:
http://www.xrb.govt.nz/standards-for-assurancepractitioners/auditors-responsibilities/audit-report-7/
This description forms part of our independent auditor’s report.
KPMG Auckland 18 December 2019
Statement of Financial Performance
for the year ened 30 November 2019
Notes NNZ 2019 $000 NNZ 2018 $000 Operating Revenue 3 19,115 18,809 Operating Expenses 3 18,761 18,512 Operating Surplus 354 297 Net Surplus for the Year 354 297
Statement of Movements in Equity
for the year ended 30 November 2019
Notes NNZ 2019 $000 NNZ 2018 $000 Members Equity at Beginning of the Year 3,065 2,768 Operating Surplus for the Year 354 297 Total Recognised Revenues and Expenses for the Period 354 297 Members Equity at End of the Year 6 3,418 3,065
Statement of Financial Position
as at 30 November 2019
Notes NNZ 2019 $000 NNZ 2018 $000 Assets Cash and Short-Term Deposits 7 2,097 3,802 Accounts Receivable 2,569 799 Prepayments 188 362 Total Current Assets 4,854 4,963 Plant and Equipment 4 116 184 Investments 7 3,792 3,553 Total Non Current Assets 3,908 3,737 TOTAL ASSETS 8,762 8,700 Members Equity 6 3,418 3,065 Liabilities Creditors, GST and Accruals 1,800 1,712 Income Received in Advance 3,544 3,923 5,344 5,635 TOTAL EQUITY AND LIABILITIES 8,762 8,700 ON BEHALF OF THE BOARD
Allison Ferguson Chair 18 December 2019
Matt Whineray Chair, Audit and Risk Committee 18 December 2019
Notes to the Financial Statements
for the year ended 30 November 2019
1 Accounting Policies
Reporting Entity Netball New Zealand Incorporated (NNZ) is an Incorporated Society in New Zealand. NNZ is a Public Benefit Entity. The primary objectives of NNZ is for the administration, promotion and development of Netball. The consolidated financial statements of NNZ comprise NNZ and it’s subsidiary New Netball Team Limited referred to as NNZ. The special purpose financial statements have been prepared in accordance with s23(i) of the Incorporated Societies Act 1908.
Basis of Reporting The special purpose financial statements have been prepared applying the accounting principles of accrual accounting and the double-entry method of recording financial statements. The special purpose financial statements have been prepared on the basis of historical cost. The financial statements comprise of Statement of Financial Position, Performance, Movements in Equity and Accounting Policies, as well as the notes to these statements. The financial statements are presented in New Zealand Dollars (NZ$).
Consolidation The consolidated special purpose financial statements include the parent (NNZ) and its subsidary (New Netball Team Ltd) which are accounted for using the purchase method. All significant intercompany transactions are eliminated on consolidation.
Going Concern The financial statements have been prepared on a goingconcern basis.
Goods and Services Tax Figures shown in these financial statements are exclusive of GST, with the exception of accounts receivable and accounts payable.
Revenue Recognition The revenue from sponsorship contracts is allocated over the term of the contract. Where the sponsorship relates to a specific event the revenue is recognised when the event occurs. The revenue from grants that are project specific is recognised when the project occurs.
Contra Contra received is recognised as sponsorship revenue when amounts are quantifiable in terms of the sponsorship contract.
Accounts Receivable Accounts Receivable are shown at an amount that represents their estimated realisable value.
Investments Investments have been valued at market value as at 30 November 2019. The movement has been recognised through the Statement of Financial Performance.
Plant, Equipment and Depreciation Plant and Equipment is stated at cost less accumulated depreciation. Plant and Equipment have been written off over their estimated useful lives on a straight-line basis to calculate the depreciation charge for the period as follows: Office Alterations 10 years Office Equipment 2-5 years Furniture and Fittings 2-15 years Other Equipment 2-5 years
Uniforms Uniforms are expensed at the time of purchase, unless purchased for future squads.
Taxation NNZ is a non-profit body for taxation purposes under section CW 46 of the Income Tax Act 2007 and as such no taxation is payable on the profit for the year.
Changes in Accounting Policies There has been no change in accounting policies during the year, and all policies have been applied on a consistent basis to all periods presented in these financial statements.
2 Commitments
Commitments under non-cancellable operating leases NNZ 2019 $000 NNZ 2018 $000 Current 219 57 Non-current 215 - Total Operating Lease Commitments 434 57
3 Operating Surplus
Operating Surplus includes: NNZ 2019 $000 NNZ 2018 $000 Income Sponsorship 10,384 10,211 Sport NZ and HPSNZ 2,571 2,475 Grants 2,540 3,102 Expenses Audit Fees 20 20 Depreciation 104 134 Rental and Operating Lease Expenses 215 167 Unrealised Gain on Investments 390 - Realised Gain/(Loss) on Investments 18 10
4 Plant and Equipment
NNZ 2019 ($000) NNZ 2018 ($000) COST DEPN ACCUM DEPN BOOK VALUE COST DEPN ACCUM DEPN BOOK VALUE Office Alterations 80 23 77 3 80 25 54 26 Office Equipment 149 6 126 23 143 12 122 22 Furniture and Fittings 147 14 107 40 147 15 92 55 Other Equipment 705 61 655 50 675 82 593 81 1,081 104 965 116 1,045 134 861 184
5 Board Honoraria
An honoraria payment was made to Board Members for 2018 and 2019 as follows: President $10,500, Board Chair $25,000, F&A Committee Chair $13,500, five remaining Board Members $10,500 each. The CEO does not receive an honorarium.
6 Members Equity
NNZ 2019 $000 NNZ 2018 $000 General Funds 3,418 3,065 Total Members Equity 3,418 3,065
7 Cash and Investments
NNZ 2019 $000 NNZ 2018 $000 Cash and Fixed Interest - short term 2,097 3,802 Fixed Interest - long term 3,792 3,553 Total Cash and Investments 5,888 7,355
NNZ has an overdraft facility of $200,000 (2018: $200,000).
8 Loans
NNZ and Netball Central Zone had a loan agreement in place amounting to $nil (2018: $105,928). NNZ had fully provided for this loan by 30 November 2017. The loan was written off against the provision across 2017 and 2018. This agreement allowed for interest to be charged at the lenders request. No interest was charged.
9 Guarantee and Contingencies
NNZ has guaranteed a $100,000 overdraft facility for Netball Waikato Bay of Plenty in 2018 and 2019. Post November 2018, NNZ has provided letters of financial support to Netball Northern and Netball Mainland.
10 Related Party Transactions
The ANZ Premiership commenced in 2017. This competition is owned by NNZ, and New Netball Team Ltd was established for the sixth team (Northern Stars) that participates in the competition. This company is 100% owned by NNZ and is also consolidated into NNZ Group results.
One of the NNZ Board members is also a Board Member of New Zealand Community Trust (NZCT). NNZ has recognised NZCT grant income of $294,843 (2018: $415,000). The Board Member removes themselves from any NZCT discussions regarding NNZ funding.
11 Subsequent Events
There have been no events subsequent to balance date that would have a material impact on the financial statements (2018: $nil).
Thank you to our Partners.
