ANNUAL REPORT Totara School For the year ended 31 December 2019 School Directory Members of the Board of Trustees Accountant / Service Provider: Adair Craik Chartered Accountants Ltd Totara School Annual Accounts Totara School Page 1 Index Page Totara School For the year ended 31 December 2019 Index Page Statement Financial Statements 3 Statement of Responsibilities 4 Statement of Comprehensive Revenue and Expenses 5 Statement of Changes in Net Assets/Equity 6 Statement of Financial Position 7 Statement of Cash Flows 8-12 Statement of Accounting Policies 13-21 Notes to the Financial Statements Other Information Analysis of Variance Kiwisport Totara School Annual Accounts Totara School Page 2 Totara School Statement of Responsibility For the year ended 31 December 2019 The Board of Trustees accepts responsibility for the preparation of the annual financial statements and the judgements used in these financial statements. The management (including the principal and others as directed by the Board) accepts responsibility for establishing and maintaining a system of internal controls designed to provide reasonable assurance as to the integrity and reliability of the school's financial reporting. It is the opinion of the Board and management that the annual financial statements for the financial year ended 31 December 2019 fairly reflects the financial position and operations of the school. The School's 2019 financial statements are authorised for issue by the Board. _____________________________________________ _____________________________________________ Linton Clarke - Board Chairperson Date: ___________________________________ Totara School Annual Accounts Totara School Damian Brown - Principal Date: ___________________________________ Page 3 Statement of Comprehensive Revenue and Expense Totara School For the year ended 31 December 2019 2019 2018 ACTUAL Revenue NOTES 2019 ACTUAL BUDGET (UNAUDITED) Government Grants 2 436,033 416,295 393,139 Locally Raised Funds 3 26,848 1,000 14,960 Interest & Dividends Received 892 500 1,698 Total Revenue 463,773 417,795 409,797 Expenses Locally Raised Funds 3 16,275 3,500 8,848 Finance 226 - 248 Learning Resources 4 280,385 255,393 269,346 Administration 5 39,097 42,550 32,161 Property 6 120,119 114,002 118,848 Depreciation 7 12,313 2,000 11,866 Loss on Disposal of Property, Plant & Equipment - - 1,535 Total Expenses 468,416 417,445 442,851 Net (Deficit)/Surplus for the year (4,644) 350 (33,054) Other Comprehensive Revenue and Expenses - - - Total Comprehensive Revenue and Expenses for the Year (4,644) 350 (33,054) The above Statement of Comprehensive Revenue and Expense should be read in conjunction with the accompanying notes which form part of these financial statements. Totara School Annual Accounts Totara School Page 4 Statement of Changes in Net Assets/Equity Totara School For the year ended 31 December 2019 2019 2018 ACTUAL Equity NOTES 2019 ACTUAL BUDGET (UNAUDITED) Balance at 1 January 85,362 85,362 118,415 Total comprehensive revenue and expenses for the year (4,644) (4,644) (33,054) 22 Equity at 31 December 80,718 80,718 85,362 Retained Earnings 80,718 80,718 85,362 Equity at 31 December 80,718 80,718 85,362 The above Statement of Changes in Net Assets/Equity should be read in conjunction with the accompanying notes which form part of these financial statements. Totara School Annual Accounts Totara School Page 5 Statement of Financial Position Totara School For the year ended 31 December 2019 NOTES 2019 ACTUAL Current Assets Current Assets 2019 BUDGET (UNAUDITED) 2018 ACTUAL Cash and Cash Equivalents 8 45,035 45,035 128,795 Accounts Receivable 9 29,730 29,730 14,185 GST Receivable 1,217 1,217 (10,027) Prepayments 3,070 3,070 3,123 Inventories 10 1,211 1,211 - Total Current Assets 80,263 80,263 136,076 Current Liabilities Accounts Payable 12 28,817 28,817 40,141 Revenue Received in Advance 13 - - 1,150 Provision for Cyclical Maintenance 14 6,030 6,030 5,956 Finance Lease Liability - Current Portion 15 961 961 3,710 Funds Held for Capital Works Projects 16 3,057 3,057 45,202 Total Current Liabilities 38,864 38,864 96,160 Working Capital Surplus/(Deficit) 41,399 41,399 39,917 Non-Current Assets Property, Plant and Equipment 11 47,589 47,589 50,904 Total Non-Current Assets 47,589 47,589 50,904 Non-Current Liabilities Provision for Cyclical Maintenance 14 7,625 7,625 5,083 Finance Lease Liability 15 645 645 376 Total Non-Current Liabilities 8,270 8,270 5,459 Net Assets 80,718 80,718 85,362 Equity 22 Equity 80,718 80,718 85,362 Total Equity 80,718 80,718 85,362 The above Statement of Financial Position should be read in conjunction with the accompanying notes which form part of these financial statements. Totara School Annual Accounts Totara School Page 6 Statement of Cash Flows Totara School For the year ended 31 December 2019 NOTES 2019 ACTUAL Cashflows Cash flows from Operating Activities 2019 BUDGET (UNAUDITED) 2018 ACTUAL Government Grants 117,707 111,000 106,611 Locally Raised Funds 26,848 (1,000) 16,111 Goods and Services Tax (net) (11,244) - 6,641 Payments to Employees (72,354) (42,000) (35,883) Payments to Suppliers (91,762) (62,950) (82,009) Interest Paid - - (248) Interest Received 892 500 1,704 Net cash from/(to) the Operating Activities (29,913) 5,550 12,927 Cash flows from Investing Activities Proceeds from Sale of PPE (and Intangibles) - - (1,535) Purchase of PPE (and Intangibles) (7,230) - (898) Net cash from/(to) the Investing Activities (7,230) - (2,433) Cash flows from Financing Activities Finance Lease Payments (4,472) (3,200) (4,302) Funds Held for Capital Works Projects (42,145) - 44,662 Net cash from/(to) the Financing Activities (46,617) (3,200) 40,360 Net Increase/(Decrease) in Cash and Cash Equivialants (83,760) 2,350 50,854 Cash and Cash Equivalents at the Beginning of the Year 8 128,795 128,795 77,942 Cash and Cash Equivalents at the End of the Year 8 45,035 131,145 128,795 The statement of cash flows records only those cash flows directly within the control of the School. This means centrally funded teachers' salaries and the use of land and buildings grant and expense have been excluded. The above Cash Flow Statement should be read in conjunction with the accompanying notes which form part of these financial statements. Totara School Annual Accounts Totara School Page 7 Notes to the Financial Statements Totara School For the year ended 31 December 2019 1. Statement of Accounting Policies a) Reporting Entity Totara School (the School) is a Crown entity as specified in the Crown Entities Act 2004 and a school as described in the Education Act 1989. The Board of Trustees (the Board) is of the view that the School is a public benefit entity for financial reporting purposes. b) Basis of Preparation Reporting Period The financial reports have been prepared for the period 1 January 2019 to 31 December 2019 and in accordance with the requirements of the Public Finance Act 1989. Basis of Preparation The financial statements have been prepared on a going concern basis, and the accounting policies have been consistently applied throughout the period. Financial Reporting Standards Applied The Education Act 1989 requires the School, as a Crown entity, to prepare financial statements in accordance with generally accepted accounting practice. The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand, applying the Public Sector Public Benefit Entity (PBE) Standards Reduced Disclosure Regime as appropriate to public benefit entities that qualify for Tier 2 reporting. The school is considered a Public Benefit Entity as it meets the criteria specified as "having a primary objective to provide goods and/or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for financial return to equity holders". Standard Early Adopted In line with the Financial Statements of the Government, the School has elected to early adopt PBE IFRS 9 Financial Instruments. PBE IFRS 9 replaces PBE IPSAS 29 Financial Instruments: Recognition and Measurement. Information about the adoption of PBE IFRS 9 is provided in Note 25. PBE Accounting Standards Reduced Disclosure Regime The School qualifies for Tier 2 as the School is not publicly accountable and is not considered large as it falls below the expenditure threshold of $30 million per year. All relevant reduced disclosure concessions have been taken. Measurement Base The financial statements are prepared on the historical cost basis unless otherwise noted in a specific accounting policy. Presentation Currency These financial statements are presented in New Zealand dollars, rounded to the nearest dollar. Specific Accounting Policies The accounting policies used in the preparation for these financial statements are set out below. Critical Accounting Estimates and Assumptions The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Totara School Annual Accounts Totara School Page 8 Useful Lives of Property, Plant and Equipment The School reviews the estimated useful lives of property, plant and equipment at the end of each reporting date. The School believes that the estimated useful lives of the property, plant and equipment as disclosed in the Significant Accounting Policies are appropriate to the nature of the property, plant and equipment at reporting date. Property, plant and equipment is disclosed at note 11. Critical Judgements in Applying Accounting Policies Management has exercised the following critical judgement in applying accounting policies: Classification of Leases Determining whether a lease is a finance lease or an operating lease requires judgement as to whether the lease transfers substantially all the risks and rewards of ownership to the school. Judgement is required on various aspects that include, but are not limited to , the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term, and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Classification as a finance lease means the asset is recognised in the statement of financial position as property, plant and equipment, whereas for an operating lease no such asset is recognised. Recognition of Grants The School reviews the grants monies received at the end of each reporting period and whether any require a provision to carry forward amounts unspent. The School believes all grants received have been appropriately recognised as a liability if required. Government grants are disclosed at Note 2. c) Revenue Recognition Government Grants The school receives funding from the Ministry of Education. The following are the main types of funding that the School receives: Operation grants are recorded as revenue when the School has the rights to the funding, which is in the year that the funding is received. Teachers salaries grants are recorded as revenue when the School has the rights to the funding in the salary period they relate to. The grants are not received in cash by the School and are paid directly to teachers by the Ministry of Education. Use of the land and buildings grants are recorded as revenue in the period the School used that land and buildings. These are not received in cash by the School as they equate to the deemed expense for using the land and buildings which are owned by the Crown. Other Grants Other grants are recorded as revenue when the School has the rights to the funding, unless there are unfulfilled conditions attached to the grant, in which case the amount relating to the unfulfilled conditions is recognised as a liability and released to revenue as the conditions are fulfilled. Donations, Gifts and Bequests Donations, gifts and bequests are recorded as revenue when their receipt is formally acknowledged by the School. Interest Revenue Interest Revenue earned on cash and cash equivalents and investments is recorded as revenue in the period it is earned. d) Use of Land and Buildings Expense The property from which the School operates is owned by the Crown and managed by the Ministry of Education on behalf of the Crown. The School's use of the land and buildings as occupant is based on a property occupancy document as gazetted by the Ministry. The expense is based on an assumed market rental yield on the value of land and buildings as used for rating purposes. This is a non-cash expense that is offset by a non-cash grant from the Ministry. Totara School Annual Accounts Totara School Page 9 e) Operating Lease Payments Payments made under operating leases are recognised in the Statement of Comprehensive Revenue and Expense on a straight line basis over the term of the lease. f) Finance Lease Payments Finance lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The finance charge is allocated to each period during the lease term on an effective interest basis. g) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, bank balances, deposits held at call with banks, and other short term highly liquid investments with original maturities of 90 days or less, and bank overdrafts. The carrying amount of cash and cash equivalents represent fair value. h) Accounts Receivable Short-term receivables are recorded at the amount due, less an allowance for credit losses. The school applies the simplified expected credit loss model of recognising lifetime expected credit losses for receivables. In measuring expected credit losses, short-term receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due. Short-term receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include the debtor being in liquidation. Prior Year Policy Accounts Receivable represents items that the School has issued invoices for or accrued for, but has not received payment for at year end. Receivables are initially recorded at fair value and subsequently recorded at the amount the School realistically expects to receive. A receivable is considered uncollectable where there is objective evidence the School will not be able to collect all amounts due. The amount that is uncollectable (the provision for uncollectibility) is the difference between the amount due and the present value of the amounts expected to be collected. i) Inventories Inventories are consumable items held for sale and comprise of stationery and school uniforms. They are stated at the lower of cost and net realisable value. Cost is determined on a first in, first out basis. Net realisable value is the estimated selling price in the ordinary course of activities less the estimated cost necessary to make the sale. Any write down from cost to net realisable value is recorded as an expense in the Statement of Comprehensive Revenue and Expense in the period of the write down. j) Property, Plant and Equipment Land and buildings owned by the Crown are excluded from these financial statements. The Board's use of the land and buildings as 'occupant' is based on property occupancy document. Improvements to buildings owned by the Crown are recorded at cost, less accumulated depreciation and impairment losses. Property, plant and equipment are recorded at cost or, in the case of donated assets, fair value at the date of receipt, less accumulated deprecation and impairment losses. Cost or fair value as the case my be, includes those costs that relate directly to bringing the asset to the location where it will be used and making sure it is in the appropriate condition for its intended use. Property, plant and equipment acquired with individual values under $1,000 are not capitalised, they are recognised as an expense in the Statement of Comprehensive Revenue and Expense. Gains and losses on disposals (i.e. sold or given away) are determined by comparing the proceeds received with the carrying amounts (i.e. the book value). The gain or loss arising from the disposal of an item or property, plant and equipment is recognised in the Statement of Comprehensive Revenue and Expense. Finance Leases A finance lease transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or not title is eventually transferred. At the start of the lease term, finance leases are recognised as assets and liabilities in the Statement of Financial Position at the lower of the fair value of the leased asset or the present value of the minimum lease payments. The finance charge is charged to the surplus or deficit over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. The amount recognised as an asset is depreciated over its useful life. If there is no reasonable certainty whether the School will obtain ownership at the end of the lease term the asset is fully depreciated over the shorter of the lease term and its useful life. Totara School Annual Accounts Totara School Page 10 Depreciation Property, plant and equipment except for library resources are depreciated over their estimated useful lives on a straight line basis. Library resources are depreciated on a diminishing value basis. Depreciation of all assets is reported in the Statement of Comprehensive Revenue and Expense. The estimated useful lives of the assets are: k) Impairment of Property, Plant and Equipment and Intangible Assets The school does not hold any cash generating assets. Assets are considered cash generating where the primary objective is to generate a commercial return. Non Cash Generating Assets Property, plant and equipment and intangible assets held at cost that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable service amount. The recoverable service amount is the higher of an asset's fair value less costs to sell and value in use. Value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of the impairment and availability of information. If an asset's carrying amount excess it recoverable service amount, the asset is regarded as impaired and the carrying amount is written down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit. The reversal of an impairment loss is recognised in the surplus or deficit. l) Accounts Payable Accounts Payable represents liabilities for goods and services provided to the School prior to the end of the financial year which are unpaid. Accounts Payable are recorded at the amount of cash required to settle those liabilities. The amounts are unsecured and are usually paid within 30 days of recognition. m) Employee Entitlements Short-Term Employee Entitlements Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to but not yet taken at balance date. Long-Term Employee Entitlements Employee benefits that are due to be settled beyond 12 months after the end of the period in which the employee renders the related service, such as long service lease and retirement gratuities, have been calculated on an actuarial basis. The calculations are base on: • likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlement information; • and the present value of the estimated future cash flows. Totara School Annual Accounts Totara School Page 11 n) Revenue Received in Advance Revenue received in advance relates to fees received from grants where there are unfulfilled obligations for the School to provide services in the future. The fees are recorded as revenue as the obligations are fulfilled and the fees earned. The School holds sufficient funds to enable the refund of unearned grants, should the School be unable to provide the services to which they relate. o) Provision for Cyclical Maintenance The property from which the School operates is owned by the Crown, and is vested in the Ministry. The Ministry has gazetted a property occupancy document that sets out the Board's property maintenance responsibilities. The Board is responsible for maintaining the land, buildings and other facilities on the School site in a state of good order and repair. Cyclical maintenance, which involves painting the interior and exterior of the School, makes up the most significant part of the Board's responsibilities outside day-to-day maintenance. The provision for cyclical maintenance represents the obligation the Board has to the Ministry and is based on the Board's ten year property plan (10YPP). p) Financial Assets and Liabilities The School's financial assets comprise cash and cash equivalents, accounts receivable, and investments. All of these financial assets, except for investments that are shares, are categorised as "loans and receivables" for accounting purposes in accordance with financial reporting standards. Investments that are shares are categorised as "available for sale" for accounting purposes in accordance with financial reporting standards. The School's financial liabilities comprise of accounts payable, borrowings, finance lease liability, and painting contract liability. All of these financial liabilities are categorised as "financial liabilities measured at amortised cost" for accounting purposes in accordance with financial reporting standards. q) Borrowings Borrowings on normal commercial terms are initially recognised at the amount borrowed plus transaction costs. Interest due on the borrowings is subsequently accrued and added to the borrowings balance. Borrowings are classified as current liabilities unless the School has an unconditional right to defer settlement of the liability for at least 12 months after balance date. Grants determined by the Minister of Education for operational activities includes all items (core components) included in the Operational Funding notice. Borrowings include but not limited to bank overdrafts, operating leases, finance leases, painting contracts and term loans. r) Goods and Services Tax (GST) The financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and accounts payable which are stated as GST inclusive. The net amount of GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is classified as a net operating cash flow in the Statement of Cash Flows. Commitments and contingencies are disclosed exclusive of GST. s) Budget Figures The budget figures are extracted from the School budget that was approved by the Board at the start of the year. t) Services Received In-Kind From time to time the School receives services in-kind, including the time of volunteers. The School has elected not to recognise services received in kind in the Statement of Comprehensive Revenue and Expense. Totara School Annual Accounts Totara School Page 12 2019 2018 ACTUAL ACTUAL 2. Government Grants 2019 BUDGET (UNAUDITED) Operational Grants 98,942 97,000 97,029 Teachers' Salary Grants 231,974 220,093 207,789 Use of Land & Buildings Grants 85,202 85,202 78,739 Other MOE Grants 19,125 14,000 9,581 Other Government Grants 790 - - 436,033 416,295 393,139 2019 2019 2018 ACTUAL ACTUAL 3. Locally Raised Funds Local funds raised within the School's community are made up of: Revenue BUDGET (UNAUDITED) Donations 14,384 1,000 3,777 Activities 8,017 - 1,506 Trading 2,188 - 684 Other Revenue 2,259 - 8,994 26,848 1,000 14,960 Expenses Activities 10,466 1,000 4,541 Trading 2,147 - 1,529 Transport (Local) 3,662 2,500 2,778 16,275 3,500 8,848 Surplus/(Deficit) for the year Locally Raised Funds 10,573 (2,500) 6,112 2019 2019 2018 ACTUAL ACTUAL 4. Learning Resources BUDGET (UNAUDITED) Curricular 10,990 8,300 18,867 Information and Communication Technology - 300 - Library Resources 2,151 700 105 Employee Benefits - Salaries 266,457 244,393 246,116 Staff Development 788 1,700 4,258 Total Learning Resources 280,385 255,393 269,346 Totara School Annual Accounts Totara School Page 13 2019 2018 ACTUAL ACTUAL 5. Administration 2019 BUDGET (UNAUDITED) Audit Fee 3,199 3,000 3,106 Board of Trustees Fees 3,380 4,000 3,040 Board of Trustees Expenses 1,291 200 2,263 Communication 1,103 1,000 856 Consumables 5,214 5,900 4,929 Operating Lease - 3,200 25 Other 852 850 376 Employee Benefits - Salaries 15,514 14,500 11,970 Insurance 1,975 3,000 1,976 Service Providers, Contractors and Consultancy 6,569 6,900 3,600 Total Administration 39,097 42,550 32,161 2019 2019 2018 ACTUAL ACTUAL 6. Property BUDGET (UNAUDITED) Caretaking and Cleaning Consumables 1,718 1,400 1,107 Consultancy and Contract Services - - 4,250 Cyclical Maintenance Provision 2,616 2,000 8,264 Grounds 8,371 7,000 8,831 Heat, Light and Water 5,096 4,200 5,508 Rates 631 700 614 Repairs and Maintenance 4,815 3,000 3,451 Use of Land and Buildings 85,202 85,202 78,739 Employee Benefits - Salaries 11,671 10,500 8,083 120,119 114,002 118,848 The use of land and buildings figure represents 8% of the school’s total property value. Property values are established as part of the nation-wide revaluation exercise that is conducted every 30 June for the Ministry of Education’s year-end reporting purposes. 2019 2019 2018 ACTUAL ACTUAL 7. Depreciation BUDGET (UNAUDITED) Building Improvements - Crown 1,594 500 1,594 Furniture and Equipment 1,841 500 1,483 Information and Communication Technology 3,256 500 3,708 Leased Assets 4,297 500 4,302 Library Resources 1,326 500 778 12,313 2,000 11,866 Totara School Annual Accounts Totara School Page 14 2019 2018 ACTUAL ACTUAL 8. Cash and Equivalents 2019 BUDGET (UNAUDITED) Bank Current Account 19,680 30,145 14,216 Bank Call Account 25,355 101,000 114,579 Cash and Cash Equivalents for Cash Flow Statement 45,035 131,145 128,795 The carrying value of short-term deposits with maturity dates of 90 days or less approximates their fair value. Of the $45,035 Cash and Cash Equivalents, $3,057 is being held by the School on behalf of the Ministry of Education. These funds are required to be spent in 2020 on upgrading the heating, carpet and autex under the Schools Five Year Property Plan. 2019 2019 2018 ACTUAL ACTUAL 9. Accounts Receivable BUDGET (UNAUDITED) Banking Staffing Underuse 11,881 18,881 - Teacher Salaries Grant Receivable 17,849 17,849 14,185 29,730 29,730 14,185 Receivables from Non-Exchange Transactions 29,730 29,730 14,185 29,730 29,730 14,185 2019 2019 2018 ACTUAL ACTUAL 10. Inventories BUDGET (UNAUDITED) School Unform 1,211 - - 1,211 - - 11. Property, Plant & Equipment Totara School Annual Accounts Totara School Page 15 Totara School Annual Accounts Totara School Page 16 2019 2018 ACTUAL ACTUAL 12. Accounts Payable 2019 BUDGET (UNAUDITED) Operating Creditors 6,959 22,791 21,140 Accruals 3,199 15,000 3,106 Employee Entitlements - Salaries 17,849 30,000 14,185 Employee Entitlements - Leave Accrual 809 10,000 1,711 28,817 77,791 40,141 Payables for Exchange Transactions 10,158 37,791 24,246 Payables for Non Exchange Transactions - Other 18,658 40,000 15,898 28,817 77,791 40,141 The carrying value of payables approximates their fair value. 2019 2019 2018 ACTUAL ACTUAL 13. Revenue Received in Advance BUDGET (UNAUDITED) Grants in Advance - Ministry of Education - - (1,150) Total Revenue Received in Advance - - (1,150) 2019 2019 2018 ACTUAL ACTUAL 14. Provision for Cyclical Maintenance BUDGET (UNAUDITED) Provision at the Start of the Year 11,039 11,039 2,775 Increase/(Decrease) to the Provision During the Year 2,616 2,616 8,264 Use of the Provision During the Year - - - Provision 13,655 13,655 11,039 at the End of the Year Cyclical Maintenance - Current 6,030 - 5,956 Cyclical Maintenance - Term 7,625 - 5,083 13,655 - 11,039 2019 2019 2018 ACTUAL ACTUAL 15. Finance Lease Liability BUDGET (UNAUDITED) The School has entered into a number of finance lease agreements for computers and other ICT equipment. Minimum lease payments payable: No Later than One Year 961 - 3,710 Later than One Year and no Later than Five Years 645 - 376 1,605 - 4,086 Totara School Annual Accounts Totara School Page 17 16. Funds Held for Capital Works Projects During the year the School received and applied funding from the Ministry of Education for the following capital works projects: 17. Related Party Transactions The School is a controlled entity of the Crown, and the Crown provides the major source of revenue to the school. The school enters into transactions with other entities also controlled by the Crown, such as government departments, state-owned enterprises and other Crown entities. Transactions with these entities are not disclosed as they occur on terms and conditions no more or less favourable than those that it is reasonable to expect the school would have adopted if dealing with that entity at arm’s length. Related party disclosures have not been made for transactions with related parties that are within a normal supplier or client/recipient relationship on terms and condition no more or less favourable than those that it is reasonable to expect the school would have adopted in dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (for example, Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such transactions. 18. Remuneration Key management personnel compensation Key management personnel of the School include all trustees of the Board, Principal, Deputy Principals and Heads of Departments. Totara School Annual Accounts Totara School Page 18 The full time equivalent for Board members has been determined based on attendance at Board meetings, Committee meetings and for other obligations of the Board, such as stand downs and suspensions, plus the estimated time for Board members to prepare for meetings. Principal The total value of remuneration paid or payable to the Principal was in the following bands: Other Employees The number of other employees with remuneration greater than $100,000 was in the following bands: The disclosure for 'Other Employees' does not include remuneration of the Principal. 19. Compensation and Other Benefits Upon Leaving The total value of compensation or other benefits paid or payable to persons who ceased to be trustees, committee member, or employees during the financial year in relation to that cessation and number of persons to whom all or part of that total was payable was as follows: Totara School Annual Accounts Totara School Page 19 20. Contingencies There are no contingent liabilities (except as noted below) and no contingent assets as at 31 December 2019 (Contingent liabilities and assets at 31 December 2018: nil). Holidays Act Compliance – schools payroll The Ministry of Education performs payroll processing and payments on behalf of school boards of trustees, through payroll service provider Education Payroll Limited. The Ministry has commenced a review of the schools sector payroll to ensure compliance with the Holidays Act 2003. The initial phase of this review has identified areas of non-compliance. The Ministry has recognised an estimated provision based on the analysis of sample data, which may not be wholly representative of the total dataset for Teacher and Support Staff Entitlements. A more accurate estimate will be possible after further analysis of non-compliance has been completed, and this work is ongoing. Final calculations and potential impact on any specific individual will not be known until further detailed analysis has been completed. To the extent that any obligation cannot reasonably be quantified at 31 December 2019, a contingent liability for the school may exist. 21. Commitments (a) Capital Commitments As at 31 December 2019 the Board has entered into contract agreements for capital works as follows: (a) A contract for Heating, Carpet and Autex to be completed in 2020, which will be fully funded by the Ministry of Education. $28,065 has been received of which $25,008 has been spent on the project to date (Capital commitments at 31 December 2018: $222,112) (b) Operating Commitments As at 31 December 2019 the Board has entered into the following contracts: (a) operating lease of Laptops 22. Managing Capital The School’s capital is its equity and comprises capital contributions from the Ministry of Education for property, plant and equipment and accumulated surpluses and deficits. The School does not actively manage capital but attempts to ensure that income exceeds spending in most years. Although deficits can arise as planned in particular years, they are offset by planned surpluses in previous years or ensuing years. Totara School Annual Accounts Totara School Page 20 23. Financial Instruments The carrying amount of financial assets and liabilities in each of the financial instrument categories are as follows: 2019 2019 2018 ACTUAL ACTUAL Financial Instruments Financial assets measured at amortised cost (2018: Loans and receivables) BUDGET (UNAUDITED) Cash and Cash Equivalents 45,035 - 128,795 Receivables 17,849 - 14,185 Total Financial Assets Measured at Amortised Cost 62,884 - 142,980 Financial liabilities measure at amortised cost Payables (28,817) - (40,141) Finance Leases (1,605) - (4,086) Total Financial Liabilites Measured at Amortised Cost (30,422) - (44,227) 24. Events After Balance Date On March 11, 2020, the World Health Organisation declared the outbreak of COVID-19 (a novel Coronavirus) a pandemic. Two weeks later, on 26 March, New Zealand increased its’ COVID-19 alert level to level 4 and a nationwide lockdown commenced. As part of this lockdown all schools were closed. Subsequently all schools and kura reopened on the 18th of May 2020. At the date of issuing the financial statements, the school has been able to absorb the majority of the impact from the nationwide lockdown as it was decided to start the annual Easter School holidays early. In the periods the school is open for tuition, the school has switched to alternative methods of delivering the curriculum, so students can learn remotely. At this time the full financial impact of the COVID-19 pandemic is not able to be determined, but it is not expected to be significant to the school. The school will continue to receive funding from the Ministry of Education, even while closed. 25. Adoption of PBE IFRS 9 Financial Instruments In accordance with the transitional provisions of PBE IFRS 9, the school has elected not to restate the information for previous years to comply with PBE IFRS 9. Adjustments arising from the adoption of PBE IFRS 9 are recognised in opening equity at 1 January 2019. Accounting policies have been updated to comply with PBE IFRS 9. The main updates are: • Note 9 Receivables: This policy has been updated to reflect that the impairment of short-term receivables is now determined by applying an expected credit loss model. • Investments: Term deposits: This policy has been updated to explain that a loss allowance for expected credit losses is recognised only if the estimated loss allowance is not trivial. Upon transition to PBE IFRS9 there were no material adjustments to these financial statements. 26. Non Compliance with Section 87A and 87C of the Education Act 1989 The draft financial statements were not submitted to theauditor by the statutory deadline of 31 March 2020 and the Board was unable to providetheir audited financial statements to the Ministry of Education by 31 May 2020as required by section 87A and 87C of the Education Act 1989. The breach was due to a nationwide lockdown which commencedon the 26 March 2020 after the World Health Organisation declared the outbreakof Covid-19 (a novel Coronavirus) a pandemic. Totara School Annual Accounts Totara School Page 21 |
|
|