CT B A CO LL O G NT RO W IN N M ON R A N R L E M G V O OR M M S O E S C K IN M B E R E N G AND BUSI
O V R C A A G T TE U EN E ST R E N L B D N T R NA R I E O I G C E E P A P V T S O I O R E P N N L A O P M ENT TR
O M TH M U NI O T U SI E N E X P U P O Y O N ES RO INE T G S W S R N T E R S B U UC A N STR D A I N R F
CA RT T E S CO N N E S SS ED U C ATO R E C I U R ES L T I C C O E C UN N TW E RI M E P R E V N E ADVOCACY Annual Report July 2013–June 2014
Business Plan 1 July 2014–30 June 2017
The NHBA Board as nominated at 2013 AGM (LEFT TO RIGHT) Ken Paterson Greg Frittelli Jenny Watson Dominic Sutton Heather Stonyer Rod Large Janet Marshall Warren Kitchin Terry Zouch Geoff Ashenden Tracy Meyer Kevin Moore Brenden Rolston
Simpson Western Lawyers Insurance and Lending Group (ILG) Clendons North Shore Pumpt Group Unitec Institute of Technology Fortune International Ltd Representing BioMag NZ Ltd Claremont Ferrand Kiwibank Vital Health Company Ltd Bright Human Capital Crown Business Services Action HQ
NHBA Sta Moe Robinson Brigid Rogers Janine Brinsdon Raimond Donk Elizabeth Devlin
Administration & Events Co-ordinator Transport Programme Manager General Manager Crime Prevention Programme Manager Marketing and Member Services Manager
NHBA Gold Sponsors 2014–15 trade colour print
Chairman’s Report Welcome to our 2014 Annual Report. It is a pleasure to report that the Association, and its operation of the North Harbour Business Improvement District, continues to strengthen in both operational delivery and financial performance. We have achieved the vast majority of our KPI targets on projects and produced a small financial surplus in the 2013–14 financial year. This is the result of strong cost controls and the attraction of additional income from our sponsors and our growing group of associate members. A key focus remains the refinement of current service programmes and the development of new initiatives such as our Business Capability Programme. To improve reliability and image quality, we have recently upgraded our CCTV camera communications network. We also plan to extend the network with additional cameras for transport and crime prevention for members on the eastern side of the motorway in the coming year. Our member events continue to be very well supported and create opportunities for members to network and learn from both industry and political leaders.
The last year has seen significant effort applied to advocacy in respect of medium and long term planning with local and central government agencies, particularly the Auckland Unitary Plan. This is an important aspect of our operations in representing members’ interests with a single voice, and we encourage our members to engage with the Association during consultation rounds. In the year ahead we are planning to move office premises to improve the operating environment for our executive team and facilitate our events cost effectively by hosting onsite when appropriate. We look forward to welcoming you to our new home in due course. Our thanks to our members, Executive Committee Board, Executive team (led by Janine Brinsdon), key stakeholders, and sponsors for your ongoing efforts and support of the operation and development of NHBA. Yours sincerely, Warren Kitchin CA Dip NZIM
General Manager’s Report It gives me great pleasure to report the key achievements for the year ending 30 June 2014 and share our strategy and plans within the context of a revolving three-year business plan. We have had a dual-focus approach to the delivery of our member programmes over the past 12 months, incorporating: • The operational roll-out of our member programmes across the expanded business district. • Fine-tuning our current service programmes to ensure they remain relevant across our expanded BID membership, within the context of an everchanging business environment. Nearly 1500 new members, from the eastern side of the motorway, joined the North Harbour Business Improvement District in July 2013 following the successful One Voice For Local Business ballot. Our new company and body corporate members have been profiled in the FYI magazine and e-newsletter, and have contributed articles. They are also represented as Gold Sponsors and as NHBA Executive Committee members. Nightly security patrols have been extended to cover the expanded BID area. These patrols offer an additional layer of protection for business and commercial property owners. Many of our new members have attended our networking events and business training programmes, and have participated in our Business Expo or the One Day Sale initiative. Triton Drive has been the subject of a traffic safety review, leading to the engagement of Auckland Transport to improve access and safety for those affected. The ongoing development of our service programmes have seen strong levels of engagement
with members, council, government agencies and other key stakeholders. We have consistently delivered against project and service programme KPIs with an average of 95% against targets, and within budget. Our Advocacy, Transport, Crime Prevention and Economic Development programmes have been enhanced. Examples include the progressive implementation of our workshops for women in business, increased public meetings, and the introduction of our new Cyber Security Programme. Leadership and governance for the NHBA team continues to be effectively provided by the Executive Committee Board and its specialist Sub Committees in Finance and Audit, Marketing and Member Services, Transport/Infrastructure and Crime Prevention. I also thank my project and admin team for their significant commitment and achievements over the past twelve months. We are committed to providing future local opportunities for all to connect, collaborate and facilitate profitable growth. We look forward to working with our members and key stakeholders to ensure that North Harbour continues to thrive as a location of choice for business and investment in Auckland. Yours sincerely, Janine Brinsdon
3
One Voice–Together Stronger Our commitment for the year 2013–14 was to continue inluencing wider regional planning and government/council resource allocations, while addressing challenges and issues positively and collaboratively. We believe that this approach, combined with the greater leverage possible through our scale, will continue to protect and enhance the interests of our members.
In the past twelve months, NHBA made submissions on key local government policy and strategy documents, with a focus on issues that affect our members’ choice of permitted commercial activities, and potential financial returns. We held public meetings to provide our business and commercial property owners with access to policy and key decision makers. These included a ‘Meet the Upper Harbour Local Board Candidates’ forum, a presentation on the Proposed Auckland Unitary Plan, and a Business Luncheon with the Hon. Steven Joyce. The Hon. Murray McCully, our local East Coast Bays MP, attended our Business Expo. NZTA presented their investment plans to commuters at two
further public meetings. The impact of the Proposed Auckland Unitary Plan will be revealed through the ongoing hearings and submission process. NHBA will continue to advocate for a change in base business zone to protect the current mix of business support services, commercial activities, and access to appropriately skilled local employees. It is expected that the Auckland Unitary Plan will be adopted in 2016. The lack of financial resource allocation for local economic development was a recurring theme throughout NHBA’s submissions to the Auckland Council and Upper Harbour Local Board 2014–15 plans. We reported on the apparent
mismatch between the significant generation of $4.6b of GDP* and the lack of funding available for the development of additional projects. These projects would enhance the business environment and build a stronger, more efficient and effective economic hub in North Harbour. Although we accept that wider community and recreational services are important, we remain concerned at the lack of focus on economic growth within these plans. Changing this mindset will be our priority during the ongoing regional government planning process, as we advocate for increased commitment from local government on behalf of our commercial property and business owners. * UHLB 2014–15 Upper Harbour Region report
Unless otherwise noted, all statistics are from the NHBA Membership Survey, May 2014.
38%
OF MEMBERS’ PRIORITY IS TO PROVIDE A COLLECTIVE VOICE WITH UPPER HARBOUR LOCAL BOARD
2014 PRE-ELECTION DEBATE
8 100
PARTIES PARTICIPATED,
40%
Brigid Rogers, Transport Programme Manager, shares information regarding transport options available through Auckland Transport
OF MEMBERS’ PRIORITY IS FOR CONTINUED ADVOCACY BY NHBA FOR REGIONAL AND CENTRAL GOVERNMENT INVESTMENT IN NORTH HARBOUR
MEMBER GUESTS
Hon. Steven Joyce, guest speaker at NHBA Business Luncheon (Feb 2014)
Members at a Business Breakfast
NHBA PROVIDES A VALUABLE VOICE FOR BUSINESS, TO ENSURE THEIR NEEDS ARE HEARD AND UNDERSTOOD WITHIN LOCAL GOVERNMENT. NHBA Executive Committee member Ken Paterson engaging with members
st’s most morld ’swo rld el al level the wo theloc ngthe al levloc CreatingCreati y at the city at le cit o.nz o.nz liveableliveab ckland.cckland.c shapeaushapeau
UPPER UPPERHARBOUR HARBOUR
- TE MAHERE TE MAHERE A TEA POARI TE POARI A -ROHE A -ROHE
BRIAN NEESON - CHAIR, UPPER HARBOUR LOCAL BOARD
Overview of Proposed Auckland Unitary Plan Notified 30 September 2013 Submissions due 28 February 2014
Chairman Warren Kitchin
NHBA Executive Committee member Rod Large engaging with members
AGM 2013
After Five function at Fish City (Nov 2013)
5
Keeping your property and people safe Through our consistent investment and focus, and our partnership with Ministry of Justice and NZ Police, North Harbour is fortunate to have one of the lowest crime rates in Auckland. Our crime prevention programme includes proactive elements such as security patrols, education, CPTED (Crime Prevention Through Environmental Design) surveys, and direct contact with members who are at risk from crime. One side effect of the low crime rate is a concerning level of complacency. During the past 12 months, 2300 incidents of open windows, unlocked gates and doors, and insecure premises have been identified during NHBA’s nightly patrols, operated by Amourguard Security and Global Security. These reports alert property and business owners, who may not otherwise be aware of these breaches, to put in place appropriate crime prevention measures. Our practical and relevant resources and training help protect their business premises, physical assets and staff from crime. Expansion of our training workshops included topics ranging from drugs in the workplace and credit card and internal fraud, to shoplifting and personal
FAMILY VIOLENCE AND CYBER BULLYING PREVENTION RESOURCES MADE AVAILABLE.
800
OVER MEMBERS VIEWED (FEB 2014)
safety. Positive feedback from the 65 members who attended is that they have applied the training immediately within their operations. The Asian Business Support programme was launched in March 2014, with support from key migrant and community agencies, including NZ Police. Face-to-face surveys, in Korean and Mandarin, were completed to assess the level of crime. Translated resources have been developed and distributed to provide support and advice, and to avoid these members becoming targets for crime. NHBA’s Cyber Security programme was launched following a member survey that identified their key areas of concern. Programme partners include industry
150
SECURITY MEETINGS HELD WITH BUSINESS AND PROPERTY OWNERS
ASIAN BUSINESS CRIME PREVENTION COLLATERAL PRODUCED. THEFT FROM 40 FACE-TO-FACE SURVEYS MOTOR VEHICLES COMPLETED DECREASED BY 33%* *NZ POLICE STATISTICS
6
180 TOOLKITS DELIVERED
experts Netsafe, UNITEC and the Internet Taskforce, plus regulatory body the National Cyber Policy Office (Department of the Prime Minister and Cabinet). Formal training sessions will be delivered throughout the 2014–15 year. Continuance of Ministry of Justice funding for the ‘Crime is Not OK’ project was fundamental to our prevention programme. We acknowledge their ongoing support, and that of NZ Police, North Shore. Due to changes in the Crime Prevention Manager’s role, we missed the CPTED and Toolkit targets set last year. However following Raimond Donk’s appointment in May 2014, we are confident that MOJ operational targets will be met in the 2014–15 period.
$150,000 GRANT FUNDING SECURED FROM MINISTRY OF JUSTICE (1 JULY 2013–30 JUNE 2015)
125
CPTED SURVEYS COMPLETED
2300 SECURITY LAPSES
IDENTIFIED BY NHBA-SPONSORED SECURITY PATROL ACROSS EXPANDED BUSINESS DISTRICT
Keeping your business moving Transport management remains a key issue. We have strengthened our relationships with Auckland Transport, NZTA, and their key contractors, so that the needs of our business community are included, especially when they plan infrastructure projects.
include: 69% reduction in queue length Bush Road/Schnapper Rock, Albany Highway -10% am, -20% pm. We have driven a review of parking, resulting in safer entry/exit to office parks with minimal loss of on-street parking. We have lobbied locally (with Upper Harbour Local Board), regionally (with Auckland Transport), and nationally (with NZTA), and taken an active role in SH1, Albany Highway, and Upper Harbour Highway project planning meetings. Business and property owners met with NZTA and AT through hosted public meetings and gained access to those responsible for delivery of these projects. Presentations from project managers at Business Luncheons and at the NHBA Business Expo aided the flow of information and feedback. NHBA’s
One key advocacy project has been mitigating risk to business during Stage 1 of the Northern Corridor Improvements Project.With 24,500 employees and more than 4000 students entering the business district each day, pressure on key entry and exit points remains an issue. Twenty-three per cent of our members want us to reduce traffic congestion and increase access to real time information.We have invested in an enhanced Look Before You Leave camera network for the six cameras at key entry/exits, with further expansion due at the end of 2014. Direct access to our real time camera network is via nhba.org.nz. Route optimisation focus has paid dividends, with a reduction in queuing time at key intersections. Examples
92%
OF MEMBERS WANT US TO CONTINUE ADVOCATING FOR IMPROVED PARKING AND SAFETY 2014
Auckland Transport
Draft
217
Parking Discussion Document
FREE PASSES FOR PUBLIC TRANSPORT TRIALS
94% OF
MEMBERS WANT NHBA TO FACILITATE PUBLIC MEETINGS WITH TRANSPORT AGENCIES
$450,000 + ECONOMIC BENEFIT AND REDUCED CONGESTION VIA ROUTE OPTIMISATION MODELLING
270 WALK
AT Draft Parking Discussion Document 2014 | 1
715 EMPLOYEES GIVEN
Transport project manager has presented to 715 commuters regarding the current options available to them for their journey to and from work. There is potential to change other habits, such as through our ‘Walk to Coffee’ promotion in April 2014, which encouraged consumers to walk rather than drive for their morning caffeine fix. NHBA’s education programme will continue as together we will achieve a reduction in the number of cars travelling into the estate with just one passenger. By reducing these journeys, productivity will increase, demand for on-street parking will reduce, and we will keep business moving. NHBA thanks Auckland Transport for their financial support of $40,000 for our member programmes in 2013–14.
PERSONALISED JOURNEY PLANS
ADVOCACY WITH NZTA ON NORTHERN CORRIDOR IMPROVEMENTS PROJECT:
$596–718M INVESTMENT
TO COFFEE VOUCHERS REGISTERED
100 NEW
REGISTRATIONS TO THE CARPOOL DATABASE
Building local connections Providing members with opportunities to connect, collaborate, and share their experiences is the backbone of our networking, economic and business development programmes. We have taken our programmes to the next level, through the incorporation of educational content at these events. Knowledge remains key—and NHBA exists to empower better business. Our increased interaction with members throughout an organisation builds knowledge and competency beyond just the senior management team. NHBA Business Breakfasts and Luncheons attracted quality speakers such as Richard Clarke (Sky City NZ Breakers), Sir Ralph Norris (ASB), the Hon. Steven Joyce, and Andy Routley (DB) to educate and inspire our business leaders. After Five functions provide the opportunity for members who cannot get away from their business during the day to connect, collaborate and communicate with local business owners, which for 39% (member survey 2014) is their main expectation of this programme. Our new Women in Business series, with Maggie Eyre (ex-Prime Minister Helen Clark’s media coach) as our first
speaker, has proven popular, and gives local women in business the opportunity to upskill and network. Local economic development is an outcome of the above functions and is further encouraged and supported through our now annual Business Expo. Year-on-year exhibitor and visitor growth demonstrates the commitment to and demand for this North Shore showcase event. We have lobbied within local and regional government for access to infrastructure, skills and investment that reflects the importance of the significant GDP contribution from North Harbour. Much of this effort was focused on the Proposed Auckland Unitary Plan and Transport submissions, but also included work with Crown Fibre Holdings to reduce the red tape and inefficiencies of the UFB
(ultra-fast broadband) roll-out. This work continues. NHBA resourced the launch of the Business Capability Programme, aimed at helping business owners and key staff to improve competencies and capability within their organisations. Sales Management and Maximising Your Marketing Dollar workshops have taken place this financial year, attended by over 120 members. Demand has been expressed for half and full day workshops in addition to these 90-minute seminars. Negotiations to form partnerships with the Marketing Association and renowned specialist training organisations and universities have begun. Research has also commenced to develop an online portal to support the current workshop model, to build capability within companies who are unable to physically attend.
4 FYI ISSUES THAT GENERATED
32,000 POINTS OF CONTACT
40% INCREASE IN VISITORS TO NHBA BUSINESS EXPO 2014
MESSAGES DELIVERED THROUGH MORE THAN ONE E-NEWSLETTER PER WEEK
8000
BROCHURES DISTRIBUTED PROMOTING THE LAUNCH OF THE ONE DAY SALE INITIATIVE 8
45,000
15 N ovem b
er
950
MEMBERS ATTENDED BUSINESS LUNCHEONS, BREAKFASTS AND AFTER FIVES
NHBA Executive member Janet Marshall engaging with Sarah Cronwright - NZTA
Maggie Eyre at the launch of the Women in Business series (Aug 2013)
Hon. Murray McCully speaks with exihibitors and visitors at the NHBA Business Expo (May 2014)
NHBA Business Breakfast guest speaker Sir Ralph Norris (Oct 2013)
Exhibitors at the 2014 NHBA Expo (also L, R and below) Launch of NHBA's Clean Up Fortnight (Sep 2013)
9
Financial Report
Independent Auditor’s Report to the members of the North Harbour Business Association Incorporated We have audited the financial statements of the North Harbour Business Association Incorporated on pages 11 to 12 which comprise the statement of financial position as at 30 June 2014, and the statement of financial performance and statement of movements in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
Executive Committee’s Responsibility for the Financial Statements The members of the governing body are responsible for the preparation and fair presentation of these financial statements in accordance with generally accepted accounting practice in New Zealand and for such internal control as the members of the governing body determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of 10
the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. An associated Hayes Knight entity is an associate member of the North Harbour Business Association Incorporated. Other than in our capacity as auditor we have no relationship with, or interests in, North Harbour Business Association Incorporated.
Opinion In our opinion, the financial statements on pages 11 to 12 present fairly, in all material respects, the financial position of the North Harbour Business Association Incorporated as at 30 June 2014, and its financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand.
Hayes Knight Audit NZ Auckland, New Zealand 30 September 2014
Business Directory
As at 30th June 2014 Registered Office 106A Bush Road, Albany Officers Janine Brinsdon (General Manager) Warren Kitchin (Chairman) Kevin Moore (Vice Chairman) Geoff Ashenden Greg Frittelli Rod Large Janet Marshall Tracey Meyer Ken Paterson Brenden Rolston Heather Stonyer Dominic Sutton Jenny Watson Terry Zouch Association Number 1277568 Auditors Hayes Knight Audit NZ Accountants Vision Accounting Solutions Ltd P O Box 303 157 North Harbour Auckland Bankers Bank of New Zealand Date of Formation 20 February 2003 Nature of Business Local Business Community Service
Statements Statement of Financial Performance For the Year Ended 30th June 2014
Statement of Movements in Equity
2014 ($)
2013 ($)
520,397
310,000
11,170
12,672
118,500
122,470
2,175
1,308
REVENUE
For the Year Ended 30th June 2014
2014 ($)
2013 ($)
84,961
116,871
37,684
(31,910)
EQUITY AT START OF YEAR
Targeted Rate Membership Subscriptions Grants Received Interest Received Sponsorship
25,827
40,650
Function & Events Income
58,437
46,864
Advertising Income
14,290
10,450
Training Income - Crime Prevention Scheme
-
5,905
Total Income
750,796
550,319
Less Expenses Crime Prevention Scheme Transport Management Programme Business Development Accident Compensation Levy Accountancy Fees
149,947
139,364
80,561
53,615
179,010
167,867
1,921
962
11,327
7,529
SURPLUS & REVALUATIONS Net Surplus/(Deficit) for the Year
37,684
(31,910)
$122,825
$84,961
Total Recognised Revenues & Expenses
EQUITY AT END OF YEAR
Statement of Financial Position As at 30th June 2014
Note
2014 ($)
2013 ($)
BNZ Cheque Account
60,953
2,330
BNZ Oncall Account
87,680
8,621
GST Refund Due
13,270
6,853
367
367
CURRENT ASSETS
Taxation Accounts Receivable Total Current Assets
9,373
20,965
171,643
39,136
Advertising
4,384
730
Audit Fees
7,538
2,300
15,040
15,120
113,653
102,437
39,973
-
1,294
1,232
BNZ Visa Account
1,255
540
600
540
Accounts Payable
79,112
21,860
2,074
3,203
Accrued Expenses
13,790
-
4,453
Funding Received in Advance
-
1,000
Total Current Liabilities
3,788
1,385
TOTAL LIABILITIES NET ASSETS
Administration Costs Management Costs Marketing Costs Bank Charges Cleaning & Laundry Board Support Computer Expenses
5,280
Consultancy General Expenses Independent Election Services
-
9,356
2,982
1,985
2
-
Legal Expenses
450
267
Licences & Registrations
588
618
Meeting Costs
1,781
1,954
Postage & Courier
1,716
234
Printing & Stationery
7,935
4,583
Rents
21,522
23,450
Recruitment Expenses
14,458
898
-
438
4,188
-
-
117
Insurance Interest
Repairs & Maintenance Signage Staff Training
123
311
Telephone, Tolls & Internet
Subscriptions
8,931
7,253
Travel - National
3,655
3,182
Travel - International
1,904
-
Kiwisaver Contributions
6,827
4,274
693,452
560,656
57,344
(10,337)
19,480
21,573
$37,864
($31,910)
Total Expenses Net Surplus/(Deficit) Before Depreciation
NON-CURRENT ASSETS Fixed Assets
5
TOTAL ASSETS
54,969
68,225
226,612
107,361
CURRENT LIABILITIES
9,630
-
103,787
22,400
103,787
22,400
$122,825
$84,961
122,825
84,961
$122,825
$84,961
Represented by:
EQUITY Retained Earnings
TOTAL EQUITY
The accompanying notes form part of these Financial Statements and should be read in conjunction with the reports contained herein. For and on behalf of the Association:
Warren Kitchin (Chairman) Date: 30 September 2014
Less Depreciation Adjustments Depreciation as per Schedule NET SURPLUS/(DEFICIT)
11
Notes to the Financial Statements 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial statements presented here are for the entity North Harbour Business Association Incorporated. The financial statements have been prepared in accordance with generally accepted accounting practices in New Zealand as defined by the Statement of Standard Accounting Practice and Financial Reporting Standards. The society qualifies for differential reporting as it is not publicly accountable and it is not large as defined by the XRB A1 Accounting Standards Framework. The society has taken advantage of all available differential reporting exemptions. North Harbour Business Association Incorporated is a nonprofit organisation registered under the Incorporated Societies Act 1908. The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical cost basis have been used, with the exception of certain items for which specific accounting policies have been identified. (a) Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years. (b) Property, Plant & Equipment The entity has the following classes of Property, Plant & Equipment: Furniture & Fittings Office Equipment Plant & Equipment All property, plant & equipment is stated at cost less depreciation. Depreciation of the assets has been calculated at the maximum rates permitted by the Income Tax Act 2007. (c) Goods & Services Tax These financial statements have been prepared on a GST exclusive basis with the exception of accounts receivable and accounts payable which are shown inclusive of GST. (d) Income Tax No provision for Income Tax has been made as there is no current or deferred tax payable. The Association is exempt from Tax pursuant to section CW40(1) of the Income Tax Act 2007. (e) Receivables Receivables are stated at their estimated realisable value. Bad debts are written off in the year in which they are identified.
2. AUDIT
Name of Related Party
Relationship
Type of transactions
Brenden Rolston
Board member of NHBA and Director of Actionmail Ltd
Services in relation to NHBA's FYI magazine
Greg Frittelli
Board member of NHBA and Shareholder of ILG Insurance Brokers Ltd
Insurances
Jenny Watson
Board member of NHBA and Solicitor at Clendons Barristers & Solicitors
Legal Services re Contracts
Ken Paterson
Board Member of NHBA and Partner of Simpson Western Lawyers
Legal Services re employment and leases
Dominic Sutton
Board Member of NHBA and Director of Pumpt Advertising Ltd
Printing flyers and folders
Warren Kitchin
Board Member of NHBA and Executive director of Claremont Ferrand
Preparation of NHBA Unitary Plan submission
5. FIXED ASSETS 2014 ($)
2013 ($)
At cost
9,353
7,129
Less Accumulated Depreciation
2,320
1,558
7,033
5,571
762
683
13,417
9,417
7,626
5,837
5,791
3,580
1,789
1,565
121,985
121,985
79,840
62,911
42,145
59,074
16,929
19,325
Total Fixed Assets
$54,969
68,225
Total Depreciation for the year
$19,480
$21,573
Furniture & Fittings
Current Year Depreciation Office Equipment At cost Less Accumulated Depreciation Current Year Depreciation Plant & Equipment At cost Less Accumulated Depreciation Current Year Depreciation
6. SECURITIES AND GUARANTEES
These financial statements have been subject to audit, please refer to Auditor's Report.
There was no overdraft as at balance date nor was any facility arranged.
3. CONTINGENT LIABILITIES
7. CAPITAL EXPENDITURE COMMITMENTS
At balance date there are no known contingent liabilities (2013:$0).
At balance date there were no known capital commitments (2013: $0)
4. RELATED PARTIES
8. OPERATING LEASE COMMITMENTS
During the year there have been material transactions between North Harbour Business Association Incorporated and related parties as follows:
North Harbour Business Association Incorporated has the following lease commitments: 2014 Lease of Property
2013
Current
Non-Current
Current
Non-Current
11,667
0
11,667
0
9. POST BALANCE DATE EVENTS No significant events have occurred since balance date that would require disclosure in these financial statements. (2013: $0) 12
Business Plan 1 July 2014–30 June 2017
It is with pleasure that we present our Business Plan 2014–17 for your approval. our expanding community of interest as a basis for long-term member engagement and funding of NHBA services. Our focus will be on creating effective long-term business connections for our members and key stakeholders through communicating and collaborating to align their interests and to drive enhanced prosperity in the greater Auckland region. In the coming three years NHBA will add value through supporting innovation and facilitating local, regional and international
The North Harbour Business Improvement District is strategically located in Albany at the heart of a significant and growing commercial presence on Auckland’s North Shore. We expect that there will be reduced project funding available to support current service programmes in the medium term. In FY 2016 we will be considering an expansion poll of the western commercial precinct adjacent to the Albany Mega Centre. This reflects
economic development, whilst advocating for both improved infrastructure and effective long-term planning outcomes. We will be refining and expanding our core service programmes to meet the growing needs of our members. This will be achieved through regular member communications and engagement to ensure our service programmes are relevant and deliver value. Our key focus areas for the 2014–2017 Business Plan are as follows:
One Voice—Together Stronger • Provide a communication portal to ensure the needs of North Harbour are understood and represented within local and central government. • Leverage ongoing local and national government investment. Advocacy – Formal submissions – Public meetings
Grow and strengthen your business • Harness the collective skills and resources within the region through collaboration between members, stakeholders, educators, economic agencies and industry experts. • Provide training and support to areas identified in the latest NHBA membership survey. • Provide businesses with capability to maximise their business lifecycle: innovate, incubate, establish, expand nationally and export. • Ensure NHBA’s business capability programme reflects national/regional economic strategic plans. We need to promote growth and enhance productivity across our region. Business capability programme – Leverage technology – Special interest groups – Economic development – Social responsibility
Keep your property and business safe • Ensure all members benefit through increased safety and reduced crime. • Provide access to best practice crime prevention training and resources. Protect your property – Protect your business – Value your staff – Enhance community safety
Keep your business moving • Ensure all members benefit through improved access and less congestion, and world-class infrastructure. • Through exceptional communication and education, provide timely knowledge to mitigate business risk and disruption during significant infrastructure projects. Reduce congestion – Improve safety and access – Commuter education – Representation
Build local connections • Build further on the strength of FYI magazine and deliver a reference publication that supports both business growth and local economic investment. • Celebrate successful collaboration between members. • Provide member access to business leaders and best business practice advocates via networking events and specific industry forums. • Streamline the media platforms through which members can connect locally, while simultaneously creating regional and national profile. • Support the growth in business units within the UHLB area through connection to NHBA members. Networking events – Media – Membership 13
One Voice—Together Stronger In 2003, the need for a strong local voice led to the formation of a business association in North Harbour. Today, operating within the Auckland Regional council structure makes the collective ‘Together Stronger’ message even more relevant. North Harbour needs a collaborative approach if we are to attract our share of the highly contested local and central government financial resources. Key advocacy projects for the coming two years are the implementation of the Auckland Unitary Plan, and the as yet unseen Auckland Long Term Plan 2015–25. Both will dictate the shape of the city through the creation of economic, educational
and residential boundaries, as well as controlling the council’s financial priorities. Although NHBA has significant scale and leverage, we recognise that a collaborative approach will have far-reaching benefits for commercial investors and business. Therefore, where appropriate, NHBA will work alongside partners such as neighbouring commercial business parks, membership organisations, and education/sector specialist organisations, to lobby for an enhanced position.
ADVOCACY
• NHBA will provide formal representation on behalf of our property and business owners across local and central government policy and plans during the next three years. • Within the Auckland regional council context, we will contribute to strategy primarily through the Auckland, Unitary, Local Board and Transport plans. • Operational submissions will focus on new Auckland Council by-laws. • Proposed Auckland Unitary Plan hearings on submissions completed are expected to continue throughout the remainder of 2014/15.
FORMAL SUBMISSIONS
With increasing pressures on their time, more than 28%* of our members want NHBA to continue to provide this service for them with local and central government. Over 33%* say it is important to provide local business and commercial property owners with a voice to ensure that Upper Harbour Local Board considers the needs of business when allocating their priorities. • NHBA commits to provide concise summaries of the key issues. • NHBA will provide timely reminders and updates through our FYI magazine, e-newsletters and website. • NHBA will invite key policy makers to present at Business Breakfasts and Luncheons as appropriate. If advocacy is to be truly effective, it must be a partnership. NHBA provides a representative voice, but we also urge our members, as business and property owners, to step up, connect, and engage with the streamlined process, to make sure their views are represented in the collective message.
PUBLIC MEETINGS
Providing a voice in the meetings that count was a commitment made during our expansion ballot (May 2013). Giving members meaningful access to decision-makers will continue to be a core element of our advocacy programme. • When they are available for public consultation, NHBA will host public meetings on the Auckland Long Term Plan 2015–25, the Auckland Plan 2015–16 and 2016–17, and the Upper Harbour Local Board Plan 2015–16 and 2016–27. • NHBA will host public meetings to provide access to transport experts who are responsible for infrastructure redevelopment within North Harbour. These meetings will include Auckland Transport, NZTA, contractors and other stakeholders.
*NHBA Membership Survey May 2014 14
Grow and strengthen your business Growing confidence within the New Zealand economy, and New Zealand’s global positioning, are key contributing factors behind the current drive to return more from business and property owners’ investments. What is required to take their performance to the next level? NHBA will form partnerships with experts to deliver the specialist knowledge and targeted resources our members require. Ninety percent of members are interested in access to industry clusters. Thirty percent are looking to understand how technology can give them an edge, while 64% want support with ultra-fast
BUSINESS CAPABILITY PROGRAMME • Provide senior management workshops on business and investment strategy and planning. • Identify partners who can deliver world-class knowledge.
broadband (UFB). Thirty-one percent are willing to commit to formalised workshops to acquire practical skills. The NHBA programme development outlined below will deliver answers—and empower better business. Between 1 July 2014–30 June 2017 our priorities are:
• Formalise a Memorandum of Understanding (MOU) with Massey University and a partnership with the Marketing Association. • Offer structured workshops to provide practical skills across core disciplines such as sales and marketing, HR, process and procedure, organisational structure and financial management. Target: six workshops per year, 350 attendees. • Create an online portal through which all members have access to training.
LEVERAGING TECHNOLOGY
• Collaborate with Crown Fibre Holdings, Chorus, Retail Service Providers and ATEED to streamline the UFB installation process within North Harbour. • Create partnerships with industry experts to educate members on how to leverage increased growth and profitability through emerging technology.
SPECIAL INTEREST GROUPS
• Provide connection to industry experts, and create opportunities for education within the clusters. • Encourage business excellence through forums, workshops and specialist communication (Mar 2015 and beyond). • Engage real estate and property management agencies on the support available through Transport, Crime Prevention and Advocacy programmes to assist quality tenant attraction and retention.
• Invest in economic data to understand business demographics within North Harbour. Identify core industry clusters (Dec 2014).
ECONOMIC DEVELOPMENT
• Secure venue sponsorship for the annual Business Expo, and grow attendance by 10% year on year. • Increase awareness of the local retail, wholesale and hospitality outlets through the 10% year-on-year growth and reputation of NHBA’s One Day Sale. • Leverage access to support from economic
SOCIAL RESPONSIBILITY
development agencies such as NZTE and ATEED. • Create a portal for member-driven inquiries to business and investment consultants. • Continue to work with universities, training organisations and polytechnics to provide local businesses with an appropriately skilled local workforce. • Create opportunities for members to benefit from research and development services. Streamline access to an appropriate pool of interns generated by local universities, polytechnics and senior colleges.
• Apply grant funding, committed by Auckland Council, to the investigation of an inorganic collection and recycling programme.
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Keep your property and people safe The financial commitment by the Ministry of Justice of $75,000 per year until June 2016 towards our current programme enables the employment of a dedicated Crime Prevention programme manager. BizWatch is the formalised relationship between NZ Police, Auckland Council and NHBA. Crime trends, community safety and regional projects are reviewed at regular BizWatch meetings. Through this collaboration, projects are moved forward and resources combined. Our participation in the Albany Safety Forum will continue to ensure that a strong business/commercial bias is retained.
Legislative changes are expected early 2015 which will impact on how property and business owners can use technology to protect their assets. NHBA will provide formal submissions and representations on this issue, and others as they arise, in the coming 12 months. The first will be the CCTV In Public Places Strategic Action Plan, Oct–Dec 2014. Between 1 July 2014–30 June 2015 we will:
PROTECT YOUR PROPERTY
• Continue to deliver nightly security patrols, 365 days a year, by contracted partners. These patrols supplement individual property owners’ personal security arrangements. NZ Police statistics 2013–14 demonstrate the impact of this investment, as night-time burglaries and damage to property incidents have not increased during the past twelve months. • Continue the free distribution of Crime Prevention toolkits containing the SelectaDNA marking kit (335 in total). • Conduct 190 physical property inspections, and highlight to tenants and property owners practical ways of keeping premises and staff safe. Reduce the opportunities for burglaries and increase guardianship.
PROTECT YOUR BUSINESS
• Provide free training on six key topics, such as drugs in the workplace and credit card fraud, that impact on business efficiency and profits. • Further develop cyber security education, to avoid fraudulent e-commerce transactions and loss of key data, and develop robust processes and procedures to protect the integrity of supplier and consumer relationships. Host six cyber security workshops.
VALUE YOUR STAFF
• Provide multimedia resources and workshops on health and safety, family violence, cyber bullying and personal safety, amongst others.
ENHANCE COMMUNITY SAFETY
• Provide clear reporting lines to NZ Police, through English, Korean and Mandarin crime prevention resources. • Through print and electronic newsletters, communicate warnings regarding criminal activity or trends. • Distribute 1000 ‘Lock your car’ and ‘Remove your valuables’ messages to reduce incidents of theft from cars. The success of this campaign will be measured against NZ Police statistics. • Install 520 secure number plates, thereby reducing car theft and stolen identity. • Continue to liaise with Auckland Council, community groups, migrant and business networks, and NZ Police to maximise the resources available for the protection of North Harbour.
74%* OF 21%* WANT TO MOBILE DATA AND TELECO 76%* WANT MEMBERS WANT LEARN HOW TO KEEP SECURITY TRAINING UPDATES FROM REGULAR UPDATES THEIR BUSINESS IS THE TOP TOPIC FOR NHBA’S SECURITY FROM NZ POLICE. SAFE ONLINE. PERSONALISED BUSINESS. PATROLS. *NHBA Membership Survey May 2014 16
Keep your business moving NHBA’s scale enables us to employ a dedicated Transport Programme manager to provide members with access to the decision-makers they would struggle to reach individually. Our transport services will continue to evolve as the impact of significant investment by local and central government is understood across North Harbour. The key transport programme priorities identified in our 2014 membership survey were: hosting public meetings with transport agencies (94% of respondents), improving parking and road
safety (92%), and research into alternative transport options for commuters (70%). These priorities were common to members located in both the eastern and western precincts of the business district. Between 1 July 2014–30 June 2015 our priorities are:
REDUCED CONGESTION
• Create a bespoke carpool programme for teachers and school staff to connect and reduce congestion during the Albany Highway reconstruction project. • Conduct a feasibility study for an additional ‘Kiss and Ride’ shuttle service facility. • Provide 150 preloaded Hop Cards to encourage trial and increased uptake of public transport. • Continue to educate commuters regarding the benefits of the Let’s Carpool scheme and NHBA’s Guaranteed Ride Home service. Obtain 150 new registrations to database. • Repeat and expand the Walk to Coffee and additional active transport initiatives.
IMPROVED SAFETY AND ACCESS
• Conduct surveys, and manage the collection of data and direct member feedback for presentation to Auckland Transport’s traffic engineers and safety teams. • Continue to build relationships with real estate agents, body corporates and property management companies, to assist with tenant mix and reduce issues around access and safety. • Assist with the creation and enforcement of traffic management plans if traffic-generating activities become an issue.
• Expand the Look Before You Leave camera network through the installation of two additional cameras in the eastern side of the business district. • Continue to lobby Auckland’s Joint Transport Operations Centre for shared access to their camera network for our commuters. • Continue to lobby for a shuttle bus during the redevelopment of Albany Highway, to reduce the impact of school traffic during peak hours.
• Continue to connect members with Auckland Transport and their agencies on localised issues such as cycle lanes, walkways, clearways, transit lanes, and management of on-street parking.
COMMUTER EDUCATION
• Conduct ten Personalised Journey Planning Sessions to inform commuters about alternative transport options that are available. • Distribute 300 Smart Transport Solutions toolkits direct to employees and students.
REPRESENTATION
• Host public meetings to educate commuters during the redevelopment of Albany Highway, and work with Fulton Hogan (the primary contractor) and Auckland Transport to mitigate the impact on business services and access. • Consult with members on the Public Transport Network Review (March 2015). • Host public meetings during the Northern Corridor
• Meet with 195 members to discuss the transport options available to them. • Provide regular updates on infrastructure projects and changes to the transport system via nhba.org.nz, social media, FYI magazine and FYI e-newsletter. • Facilitate presentations by Auckland Transport, NZTA and other key stakeholders at NHBA Business Breakfasts, Luncheons and the annual Business Expo.
Improvement Package and the SH18 planning process. These will facilitate interaction between NZTA and HEB Construction (the appointed contractor). • Through formal submissions, ensure North Harbour transport requirements are understood within the strategic Auckland 2015–2025 and Auckland Unitary Plan. • Ensure our members are provided appropriate consultation on infrastructural changes that impact on access, productivity and investment. 17
Build local connections Research shows that providing a world-class business environment requires more than outstanding infrastructure and location. It takes a commitment from those involved to communicate, connect, collaborate, and encourage others within that network to raise the bar and deliver to their potential. NHBA’s investment in providing opportunities for these conversations to take place reflects the importance we place on building North Harbour’s business community. We are committed to providing numerous opportunities for collaboration and the formation of new relationships. This is a direction also supported by our members. More than 70% rated connecting with local businesses as their top priority, whether through the Business Breakfast, Luncheon or After Five series, our media platforms, or the annual Business Expo and
EVENTS
• Host five sponsored Business Breakfasts or Luncheons, featuring speakers who will stimulate new ideas and modes of operation through sharing their experiences. Target: 130–150 attendees per event. • Host four Women in Business events, to connect with those unable to attend breakfasts or after work functions. Target: 80 attendees per event.
• Host a minimum of four Business After Fives, increasing the profile of a local business, while encouraging informal networking. Target: 80 attendees per event. • Continue to create NHBA operational efficiencies with the delivery of these events, to ensure they are professional and add value to our members.
MEDIA
Driven by member demand, all NHBA media will carry increased content regarding general business trends and news, new businesses entering the North Harbour area, business success and local issues. Professional development and local government articles will be retained, again due to positive member feedback. Improved access and content segmentation will be the outcome of planned investment in a revamped www.nhba.org.nz and CRM system. This revised platform is expected to carry local jobs and a community notice board. Target: Increase online readership by 10% against key Google analytics, plus growth of 30% across our social media platforms.
EXTERNAL MEDIA
The impact of NHBA’s programmes are recognised through increased external media coverage, namely through Channel magazine, North Harbour Networker, and the North Shore Times. It is our intention to be recognised as the ‘go to’ source for local and national media, for issues that affect our members.
MEMBERSHIP
will aim to link businesses located in the adjacent Albany retail precinct with our current BID. Associate membership will also be promoted beyond Albany to commercial/industrial areas that currently do not have access to the benefits achievable through our scale. Target: five new members per month. Retention of 80% of existing associate members. Gold sponsorship target: ongoing commitment from twelve Gold Sponsors, representing a wide range of industry and business services.
• FYI magazine will remain the core source of member news and information, targeting business, commercial property owners and key decision-makers throughout the business district. We will produce 4–5 magazines per year, creating over 45,000 chances for engagement. • Produce weekly FYI e-newsletter. Grow business owner and stakeholder database to 3200. • Continue to offer print and online advertising opportunities to members and associate members at competitive rates.
Auckland Council has committed to fund sense of place or wayfinding signage to identify the expanded business improvement district. Funding and resource consents are expected to be resolved in the 2014–15 financial year.
Associate membership growth not only provides our full BID members with expanded networks, but the subscriptions also support programme development. Strong associate membership is required by Auckland Council as supporting evidence ahead of conducting an expansion ballot. To future-proof North Harbour BID growth, our 2014/15/16 associate membership drive
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One Day Sale. Attendances across these events are expected to exceed 1300 members in the next twelve months. Technology will continue to play an important role in our communications, with additional services being made available through an enhanced website and social media platforms. Increased connections, which support growth, is the ultimate goal. Between 1 July 2014–30 June 2015 our priorities are:
Budget June 2015 and June 2016 In line with the Auckland Council BID policy requirements, we have produced a three-year Business Plan supported by a budget through to 30 June 2016. In the year to 30 June 2015, we have reasonable certainty for programme funding through our current NHBID targeted rate and external grant funded revenue. The majority of grant funding to FY 30 June 2015 is earmarked from Ministry of Justice in support of the Crime Prevention programme. The balance is expected from Auckland Transport and Auckland Council, although the level of this funding has not been confirmed at the time of writing this report.
Transport and Auckland Council due to increased pressure to reduce central and local government expenditure. In order to maintain the current level of member services, there may be a need to increase the targeted rate paid by members—the first increase since 2008. If greater than expected grant funding is attracted, this potential increase may not be necessary. The draft budget 30 June 2016 also includes a baseline figure to support the potential NHBID expansion ballot that would invite those located in the commercial precinct adjacent to the Albany Mega Centre to become members.
Variations to the Draft FY 30 June 2015 budget, published in the AGM 2013 documentation, are shown below. These reflect changes in member demand across our programmes and services. Additional non targeted rate-driven revenue will be used to offset increased expenditure across our core member programmes. We highlighted the potential relocation of NHBA’s offices in the AGM 2013 detail. NHBA will relocate premises, on 1 November 2014, to create an improved working environment and facilities to host training and member events. Our draft budgets through to 30 June 2016 reflect reduced project funding from both the Ministry of Justice, Auckland
Budget Summary
Draft June 2015
Final FY 2015
Draft FY 2016
Key revenue streams
FY June 2015 ($)
FY June 2015 ($)
FY June 2016 ($)
Member Targeted Rate
523,000
523,000
External Programme Grants
523,000
112,000
110,000
80,000
Events - including Expo
65,000
85,000
90,000
Gold Sponsorship
45,000
45,900
48,000
Associate Member Subscriptions
35,000
24,360
28,000
Advertising and Promotion
20,000
22,600
30,000
2,200
2,500
813,060
814,650
Interest Total Estimated Income
800,000
Income 2015 Member Targeted Rate External Programme Grants
Expenditure Crime Prevention Programme
150,000
150,918
98,000
Events - including Expo
Transport Programme
120,000
95,593
105,000
Gold Sponsorship
Events - including Expo
125,000
132,092
140,000
Associate Member Subscriptions
Member Communications
75,000
103,044
95,000
Advertising and Promotion
Business Training and Development
55,000
42,784
48,000
Interest
Total Programme Costs
525,000
524,431
486,000
Operating Costs Personnel
150,000
166,931
168,000
Admin
45,000
45,636
47,000
Premises
35,000
33,580
40,000
IT/Computer
6,000
3,940
5,000
Depreciation
22,000
24,600
25,000
BID Programme Development
15,000
3,750
5,000
BID Extension Ballot
-
-
15,000
NHBA Executive Committee Honorariums
-
5,000
7,500
Total operating costs
273,000
283,437
312,500
Total estimated expenditure
798,000
807,868
798,500
2,000
28,692
3,000
Estimated Surplus/Deficit
Crime Prevention Programme Transport Programme Events - including Expo Member Communications Business Training and Development
Capital Expenditure
Personnel
Transport - CCTV Camera Network Expansion (Eastern Precinct)
-
23,500
-
Leasehold Improvements - Fit Out - New Offices
-
8,000
-
Total
-
31,500
-
2,000
(2,808)
3,000
Surplus/(Deficit) to be funded from reserves
Expenditure 2015
Admin Premises IT/Computer Depreciation BID Programme Development NHBA Executive Committee Honorariums 19
F4, 27–29 William Pickering Drive, Albany PO Box 303 126, North Harbour 0751 Office 09 968 2222 Web nhba.org.nz