SUPPORTING OUR SERIOUSLY INJURED PLAYERS
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014
www.rugbyfoundation.com
TABLE OF CONTENTS
Notice of Annual General Meeting
3
Officers 2014
4
Chairman’s Annual Report
5–6
Chief Executive Officer’s Report
7–9
Treasurer’s Report
10
Financial Statements
11
Statement of Financial Performance
12
Statement of Movements in Accumulated Funds
13
Statement of Financial Position
14
Notes to the Financial Statements
15 – 22
Auditor’s Report
23 – 24
Acknowledgements
25 – 26
Members List
27 – 28
In Loving Memory of
Jordan Russell Te Awhi Kemp 27 March 1997 – 6 July 2014
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
1
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given of the 28th Annual General Meeting of the New Zealand Rugby Foundation Incorporated will be held in the Presidents and Directors Lounge, Level 3, Alexandra Park Function Centre, Greenlane Road West, Epsom, on Tuesday 31 March 2015. AGENDA a)
Consideration of the Annual Report for the year ended 31 December 2014.
b)
Consideration of the Financial Statements for the year ended 31 December 2014.
c)
Election of Trustees
Ratification of new Trustees
I n accordance with the rules of the New Zealand Rugby Foundation, Colin Gibbons, Andy Leslie and Tane Norton retire by rotation.
Tane Norton and Andy Leslie are availbale for re-election.
Colin Gibbons has declared himself unavailable for re-election
mendments to the Constitution of the New Zealand Rugby Foundation Incorporated as ratified A on 14 Sept 2013
d)
General Business
Lisa Kingi-Bon CHIEF EXECUTIVE OFFICER NEW ZEALAND RUGBY FOUNDATION INCORPORATED
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
3
OFFICERS 2014
Patron: Founding President: President:
Sir Colin Meads (DCNZM MBE) Sir Russell Pettigrew F.Inst. D, FCIT (K.T) Tane Norton
Original First XV:
Sir David Beattie, Sir Russell Pettigrew, Sir Brian Lochore, Sir Desmond Sullivan, Sir Wilson Whineray, J.G Frazer, B.J Drake, J.J Stewart, G.C McKay, A.R Leslie, R.A Harper, B.A Hancox, K.R Tremain, R.W Thomas, I.A Vodanovich
Board of Trustees:
aurice Trapp (Chairman), Tane Norton (President), Mark Peters (Treasurer), M Colin Gibbons, Andy Leslie, John Leslie, David Latta, Simon Tremain, Bryan Williams, Dr. John Mayhew, Gerard van Tilborg, Wayne Peters (NZRU representative)
Honorary Life Members:
Sir Russell Pettigrew (KT), Sir Colin Meads (DCNZM MBE) Sir D.J (John) Graham, Richie Guy
Chief Executive Officer 2014:
Lisa Kingi-Bon
Accountant:
Angela Davies
Auditors:
Crowe Horwath, Auckland
Bankers:
Bank of New Zealand Newmarket
Administration:
Sport Auckland House Level 4, Alexandra Park Function Centre Greenlane Road West Epsom Ph: (09) 623 7980, Fax: (09) 623 7920 mobile 021 212 7399 Email: lisa@rugby-foundation.org.nz
4
CHAIRMAN’S ANNUAL REPORT
It is pleasing to note that our financials show such a positive increase in our revenue, and that we have turned around the slightly disappointing result of the previous twelve months. Part of that revenue growth is due to additional support from New Zealand Rugby – for which we are extremely grateful – part is due to growth in our investment portfolio, and much is due to the hard work of our CEO and her team. The Foundation, like all charities, strives to source funds in order to assist our primary cause, in our case, our VIPs. But, it is not simply a case of providing funds for the many projects that are placed before us. Just as relevant to the Foundation, our VIPs and their families is the presence and support of Lisa and Ben, together with our trustees at time of accident, recovery, recuperation and rehabilitation. It has been wonderful to receive the positive feedback from so many of our VIPs and their caregivers around the recent weekend of the Wellington Sevens. There were some great stories told and shared, but one common theme has been the appreciation of the “family culture” that is being created by attending such events and being hosted in style by Lisa and Ben. The Foundation also holds a position in assisting our sport in preventing serious injuries in the future. New Zealand Rugby leads the world in its Rugby Smart program and to give support to this and to spread the word about what the Foundation is doing, we have been attending and speaking at a number of Provincial Union AGM’s. We are very grateful for the opportunity to do this, and thank all Chairmen and CEOs’ for allowing us this opportunity. Even with this focus on safety at all levels of the game, we still have the one off tragic event that adds one more to our list of VIPs. In 2014, we lost Jordan Kemp who sadly died as a result of his injury, and Nat Manville became our 102nd spinal cord injured VIP. To both families, the Rugby Foundation and the wider New Zealand rugby family extend their condolences and support. We also accept a role in advocacy, both in what we do and what our VIPs require. We have good engagement with ACC, that allows us to voice the concerns of our VIPs and is a significant help for the families at time of accident. We work closely with the New Zealand Spinal Trust, an organisation whose main purposes include advocacy and assisting spinally injured people to rehabilitate and return to work. Very recently we have hosted a meeting between Hearts in Union (Rugby Foundation Australia), the Chris Burger Petro Jackson Players fund (from South Africa), and New Zealand Rugby management. From this initial meeting we propose to develop communications and develop support for each other’s charitable model. I mentioned earlier, the increased funding we receive from NZR and the efforts that they go to in order to make the game as safe as possible, continually adding relevancy to the Rugby Smart program. We would struggle to achieve our goals without this support and we recognise that our numbers are growing and the costs are likely to increase over the years also. ACC acknowledge that their own contribution to a young person with spinal cord injury is likely to be around $7 million dollars over that person’s lifetime. On behalf of all our trustees, I thank the NZR Board and management team for their ongoing support of our organisation and the work that the Foundation carries out. Also, we thank our many sponsors, benefactors and the trusts that provide the financial support for our projects.
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
5
CHAIRMAN’S ANNUAL REPORT
Mark Peters, our treasurer will speak about the financials but I would just like to refer to the board’s decision, promulgated a few years back by Richie Guy, that we must, on an annual basis, reinvest sufficient surplus funds to inflation proof our capital reserves. The positive revenue results have enabled us to achieve this goal for 2014. While we have a positive position today, we are ever mindful of the uncertainties around charitable funding. Just as the number of our VIPs is growing each year, so do the costs of home repair and support. The Foundation must keep a constant watch on its income and its investments in order to provide a sustainable model for VIPs today and for the future. Finally, in my role as chairman, I pass my thanks and appreciation for the work that each of our trustees put into this charitable organisation. During the year much enthusiasm, passion and energy emanated from our board meetings especially in regards to raising the funds and the awareness of the work we do. Thanks also, on behalf of all out trustees and all our VIPs and families, to Lisa, Ben and Gwen, for the outstanding work that they do and the love that they share with all the VIP families. Maurice Trapp CHAIRMAN
Emirates ‘Long Lunch’ in Dubai. From left: Graham McNally - MC, Keith Quinn - Guest Speaker, Gary Chapman - President Emirates Group Services, Matt Dawson - Guest Speaker, Jim Fitzsimons - General Manager The Sevens plus two Emirates Flight Attendants.
6
CHIEF EXECUTIVE OFFICER’S REPORT
2014 has had many highs and lows. As sad as the lows are, the highs which manifest in the strength of the human spirit that we see so regularly, rise to the top. The annual report always creates a moment for retrospection. The stark reality is we have VIP no 102 in Nat Manville and Jordan Kemp passed away. On The Field Jordan passed away on 6 July in a “usual” Saturday afternoon club match. We dedicate this annual report to Jordy’s memory and would like to acknowledge his whanau and in particular his sisters, Crushla and Michaela, the other two parts of his triplets and also his three brothers, Sam, Max and Joseph. I would like to acknowledge the Northland Rugby Union, Jeremy Parkinson and Greg Shipton for their mateship in managing the aftermath of Jordy’s passing. We will continue to work with his family to offer support and assist them is creating a legacy in his name, the Jordan Kemp Memorial Trust. On Sunday May 18th I received the dreaded “Sunday phone call” from NZR management. As good friends as we all are, I knew immediately Buck & Skells were not calling for a casual chat. Nathanael Manville was injured on 17 May, four days after his 18th birthday. He was involved in a low velocity hyper flexion injury which resulted in a C5 flexion teardrop fracture with C5 AISA A spinal cord injury. One long month in ICU. On 18 June he was transferred to Burwood Spinal Unit where they weave their healing rehabilitation work. He transferred home in November and has settled well back into school and readjusting to his new life. We had sent a note out to the VIP network in Christchurch informing them of Nat’s injury and transfer to Burwood. Within an hour VIP No 18 Stelios Meimaris’s wife Leanne appeared at Burwood seeking out the family to “be with them”. As it happened, VIP No 3, Chris Moran was also in Burwood for some serious surgery. Chris’s wife Sharon also sought out Brenda, Nat’s Mum. The strength and comfort within our VIP community is remarkable. We would like to salute the Palmerston North community and, in particular, John Knowles and his team at the Manawatu Rugby Union who stepped up incredibly in arranging a fund raising dinner for Nat. The folk of Palmy were very generous as were Keith Quinn, Mike Copeland, Sir Colin Meads, Andy Leslie, Ross Plunket, Wayne Smith, Dave Rennie and VIP 101 Seti Tafua who all gave of their time to create a highly enlightening and entertaining evening. We partner with Nat now for life, and indeed his parents Darrell and Brenda and siblings Jess and Michael. In a heartbeat all of their lives changed irrevocably. There were also three “near miss” accidents and one very lucky young man, Tone Kengike whose surgery to relieve pressure off his brain saw him up and about within a week. Perspective is so important. Rugby is a contact sport as are many other sports and activities. Approximately 130 people a year present to the Burwood Spinal Unit and the Auckland Spinal Rehabilitation Unit. Falls and motor vehicle accidents are the primary cause of Spinal Cord Injury; falls have now overtaken sporting injuries. Of sporting injuries, mountain biking is the largest cause, closely followed by horse riding injuries. Only one to two per year are caused by rugby injury. One is of course too many. There are about 150,000 community rugby players in New Zealand (alongside the 180 professional players). Of the community participants 28,000 play in the adult divisions with a further 42,000 in the 13-20 age group. The balance of the community game (80,000) are aged 12 and under. SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
7
CHIEF EXECUTIVE OFFICER’S REPORT
We are all committed to reducing this through education. New Zealand Rugby and ACC initiated the world leading RugbySmart injury prevention and education programme in the early 2000’s. Every coach and referee is obliged to take this course every year. This year (2015) RugbySmart is being rolled out to players as well and concussion in sharp focus in terms of management and attitude. • • •
• •
ince the inception RugbySmart serious spinal injuries reduced from more than 10 to less than S three per year. 46 claims per 100 000 by rugby forwards were for neck, back and spine injuries between 2007 and 2012. At a cost in excess of $67 million per annum to the Accident Compensation Corporation (ACC), rugby represents the single largest source of injury numbers and costs within the sport and recreation sector in New Zealand. ACC provides support and services to people with lasting impairments after accidents, like spinal and brain injuries, so they can live everyday lives in their communities. We are unique in the world with this insurance policy and certainly when you hear comment from our counterparts around the world we are well placed. 2014 was the first season where community players were exposed to crouch-bind-set procedure. In that year, moderate to serious neck injury claims fell from 18 to 7 (see Table below). It is highly unlikely that this decrease is a result of random variation from year to year. While the fall in scrum injuries is a major improvement, the worst neck injuries we are seeing now result from the tackle.
Moderate to Serious Neck Injury Claims to ACC from Scrums Year
2009
2010
2011
2012
2013
2014
Number
26
18
18
16
18
7
Off the field We have been working closely with ACC and have learnt a fair amount about the “new” New Zealand Spinal Cord Impairment Action Plan (http://www.health.govt.nz/publication/new-zealand-spinal-cordimpairment-action-plan-2014-2019) developed with the aim of optimising and coordinating resources to improve outcomes for people with Spinal Cord Injuries and their families. Collaboration goes a long way for maximum benefit of all of our resources. The NZ Spinal Trust also play such a vital role in this arena. Finances We are pleased to report a positive year financially as Mark Peters explains in more detail in his Treasurer’s Report. Our grateful thanks to New Zealand Rugby for the increase in annual funding and this provided monthly certainly provides for more positive cash flow management. Our own events have produced good results and I’d like to acknowledge Ben’s hard work in this area. Events are vital for us not only in terms of income but as much in terms of networking and profile. In particular we love hosting our VIPs and their families. The new Membership programme was launched and is gaining traction. It is designed to generate long term, sustainable income. The most important element is the database we’re building. It is our gold.
8
CHIEF EXECUTIVE OFFICER’S REPORT
Growth continued within the digital space. In line with international trends the re-positioning the website as primarily a point of information has led to an increased focus on social media platforms. Commencement of a regular video blog has increased reach and engagement through Facebook, whilst also allowing us to develop brand personalities. The continued support of the Super Rugby Franchises allowed us again to promote discounted tickets to NZ matches; this continues to be well received by our supporters, as was the digital membership program. Combining these two touch points with further incentives should safeguard future growth. Events We would like to acknowledge the incredible continued support from many stalwart supporters: Centurions RFC, New Zealand Harlequin RFC, and New Zealand Barbarians RFC, Massey RFC, Takapuna RFC and the Saracens in Napier. Many individual donors give generously at events and also directly into our bank account. We were fortunate to receive a very generous donation from The Emirates Airline Dubai Rugby Long Lunch held in October. Sincere thanks to Graham McNally and Gary Chapman. Sponsors and Trusts Special thanks also to the Infinity Foundation. We would also like to acknowledge North and South Trust, Pelorus Trust and the Four Winds Foundation and our sponsors for their incredible support. Panasonic, Lion Nathan, Matua Valley, DB Breweries, Claymore Law, Rugby World and Adidas. As with all organisations control of income and expenditure is key, and whilst we exist to support our VIPs we are totally committed to a balance of doing our work and prudent management. JB Were have done an outstanding job of growing our base and as Mark explains this is key to our future. We would simply be unable to provide the assistance that we do to our VIPs without the grant that we receive from New Zealand Rugby. I would also like to acknowledge the many dedicated staff members who assist us in a myriad of ways. Sincere thanks to our VIPs. It’s been wonderful to visit many of you at home and meet wives, partners, children and carers. I have really discovered this year that when I need support, when I’m having to front up at a very sad and hard time – my support comes from you VIPs. The care and encouragement you give is greatly appreciated. We have enjoyed some wonderful social occasions together in Auckland, Wellington, Hamilton and Napier. In conclusion I would like to thank my colleagues Ben Sturmfels, Gwendoline Rewcastle and Angela Davies for the teamwork and energy and our Board of Trustees who offer constant support and guidance. They give so much time and energy to us. Lisa Kingi-Bon Chief Executive Officer
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
9
AUDITOR’S REPORT TREASURER’S REPORT
2014 was a very satisfactory year in respect of financial performance. Net Surplus transferred to equity increased by approximately $325,000 from 2013 to $366,566. However it should be noted that, while still an excellent result, $212,334 of the overall surplus was non cash and came from growth in value of the investments portfolio held with J B Were, who have once again done an excellent job with the Foundation’s Investments. The cash surplus for the year, excluding investment equity growth, was $154,232 and this, along with the revalued investment growth, has been transferred to the Foundation’s capital reserves (total as above of $366,566). These reserves now stand at a healthy $4,139,256. During the year the Foundation undertook a 10 year forecast exercise to see if ongoing operation and maintenance of reserves was possible under existing income and expense streams. These were adjusted for expected increases in costs, but keeping income relatively static. The outcome was that with some work on various secondary income streams as is currently being undertaken, the Foundation should be able to meet its financial needs and maintain reasonable growth in its reserves throughout that period. Constant vigilance will be required on both income and expenditure, but the outlook is certainly positive. The Foundation is very grateful for the increase in annual grant from NZRU- which has helped maintain a satisfactory level of grants being able to be paid out as required to people supported by the Foundation. Other main points from the years financial accounts to note are: •
Overall Revenue increased to $1,227,158 - an increase over 2013 of $310,656, or 33.90%
•
Operating Expenditure at $542,554 increased over 2013 by $70,931, or 15.04%
•
here was a one off stream of income from a Marquee Event that did contribute $42,557. Such T events are somewhat of a bonus, and constantly being searched for, but not guaranteed to continue on an annual basis.
•
verall grants to injured players reduced by $123,239 from 2013 to $244,020 this year. But as has O been stated before the Foundation meets the needs of injured players as they arise, and while in 2013 such needs exceeded the Foundations cash income for the year- this year they happened to be less. The policy of the Foundation remains that genuine needs of injured players are a priority before growth in reserves.
•
he Foundation’s balance sheet is very healthy with gross assets mainly being liquid, and totalling T $4,334,700, while liabilities are all current and total just $195,444.
Finally a sincere thanks to CEO Lisa, and Accountant Angela, for the great work they do in keeping the Foundations financial records and activities accurate and up to date. Mark Peters Treasurer
10
FINANCIAL STATEMENTS for the year ended 31 December 2014
The Trustees present these financial statements for the year ended 31st December 2014. For and on behalf of the New Zealand Rugby Foundation Incorporated.
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
11
STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 December 2014
Note
Revenue Income from Investments Annual Grant NZRFU Revenue Other Revenue Donations Sponsorship Gaming Grants Sundry Income Charity Golf Days Marquee Event Gain on Sale of Bonds Market and Exchange Rate Variance in Equities Total Other Revenue
2
14
3
Total Revenue Expenditure Grants - Injured Players Grants – General Expenditure Other Expenditure Operating Expenditure Foreign Exchange and Equity Settle Other Expenditure Net Surplus/(Deficit) of Revenue over Expenditure
5
4
2014 $
2013 $
194,630 300,000 494,630
187,303 250,000 437,303
46,394 73,716 218,354 111,387 27,786 42,557 0 212,334 732,528
38,715 34,210 192,777 82,304 0 0 0 131,193 479,199
1,227,158
916,502
244,020 18,272 262,292
367,259 36,762 404,021
542,554 55,746 598,300
471,623 0 471,623
366,566
40,858
The accompanying notes form part of, and should be read in conjunction with, these financial statements
12
STATEMENT OF MOVEMENTS IN ACCUMULATED FUNDS for the year ended 31 December 2014
2014 $
2013 $
Net Income over Expenditure for the Year
366,566
40,858
Total Recognised Revenues and Expenses for the Year
366,566
40,858
3,772,690
3,731,832
4,139,256
3,772,690
Accumulated Funds at Beginning of Year Accumulated Funds at Year End
The accompanying notes form part of, and should be read in conjunction with, these financial statements.
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
13
STATEMENT OF FINANCIAL POSITION as at 31 December 2014
2014 $
2013 $
172,926 74,585 350,668 289 6,466 7,792 0 5,083 64 13,030 0 1,492 632,395
70,078 73,720 116,950 313 246 10,667 300,689 4,786 37 15,567 3,600 0 596,653
6
6,317
7,334
7
1,110,000 1,610,988 975,000
860,000 1,507,862 975,000
3,695,988 0
3,342,862 0
0
0
4,334,700
3,946,849
78,044 82,400 35,000 0
78,941 67,016 28,000 202
195,444
174,159
4,139,256
3,772,690
4,334,700
3,946,849
Note
Current Assets BNZ Cheque Accounts BNZ Savings Accounts JB Were Call Account (NZD) JB Were Call Account (GBP) JB Were Call Account (USD) JB Were Call Account (AUD) Westpac Term Account Trade Accounts Receivable Interest Accrued Merchandise on Hand Prepayments Goods and Services Tax Non Current Assets Fixed Assets at Net Book Value Investments Investments General – Fixed Interest Investments General – Equities Investments NZRFU – Fixed Interest Provision for Impairment of Investments
Total Assets
Current Liabilities Accounts Payable and Accruals Sundry Accounts Payable Income Received in Advance Goods and Services Tax
Accumulated Funds Total Funds Employed
15
7 8
The accompanying notes form part of, and should be read in conjunction with, these financial statements
14
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 1: STATEMENT OF ACCOUNTING POLICIES Reporting Entity New Zealand Rugby Foundation Inc is incorporated under the Incorporated Societies Act 1908 and the Charities Act 2005. The Foundations Charities Commission number is CC42547, and it is also a registered Donee Organisation with the Inland Revenue Department. The financial statements of New Zealand Rugby Foundation Inc have been prepared in accordance with New Zealand generally accepted accounting principles. Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on a historical cost basis are followed. Specific Accounting Policies The following specific accounting policies which materially affect the measurement of earnings and financial position have been applied: Revenue received from sponsorship, grants and donations are accounted for on a cash basis because the general nature of this income is not certain until it is received. Grants received during the year, which are required to be applied for a specific purpose, are recognised as revenue when the Foundation has applied the funds for that specific purpose. Revenue received from professional fundraisers is accounted for on a net basis as the Foundation does not incur nor is liable for the expenditure. Sponsorship in Kind – The Foundation receives donated items for auction and events, but the value is not certain until the sale, therefore the revenue is recognised when the item is sold. Accounts receivable are stated at their estimated realisable value. Equities investments are fair valued at current market rates, fixed interest investments are carried at cost. All balances within these financial statements are stated in New Zealand dollars. Merchandising Stock is stated at the lower of cost, determined on a first-in first-out basis, and net realisable value. All owned items of Furniture and Equipment are initially recorded at cost, and depreciated as outlined below: Office Furniture and Equipment
11.4% - 60% DV
Website
60% DV
Where an item of furniture or equipment is disposed of, the gain or loss is recognised in the statement of financial performance and is calculated as the difference between the net sale price and the carrying value of the asset. The financial statements have been prepared on a Goods and Services Tax (GST) exclusive basis, except for receivables and payables that are stated inclusive of GST. New Zealand Rugby Foundation Inc qualifies for differential reporting as it is not publicly accountable and it is not large as defined in the framework for differential reporting. New Zealand Rugby Foundation Inc has taken advantage of all differential reporting exemptions available to it. SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
15
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 1: STATEMENT OF ACCOUNTING POLICIES (continued) Foreign Exchange Movements Transactions in foreign currencies are translated to NZD at the settlement rate. Monetary assets and liabilities denominated in foreign currencies in the Statement of Financial Position are translated to NZD at the foreign exchange rate ruling at that date. Foreign exchange differences arising on their translation are recognised in the Statement of Financial Performance. Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on a basis consistent with those used in previous years.
NOTE 2: INCOME FROM INVESTMENTS
Investments ANZ National Bank Limited ASB Bank Auckland City Council AUD Call Account BNZ Accounts BNZ Term Deposits General IAGFA Insurance Group Infratil Limited JB Were Call Account RaboBank Limited Wellington Airport Westpac Westpac on Term Interest Accrued Dividends Received Total Income from Investments
16
2014 $
2013 $
22,704 11,136 17,930 433 473 0 0 18,750 24,874 8,371 12,976 0 11,090 3,247 0 62,646
32,121 0 17,930 95 459 3,569 13 18,750 24,417 11,435 11,629 18,750 5,027 0 0 43,108
194,630
187,303
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 3: OTHER REVENUE Note
Donations Memberships HomeCare NZ Sponsorship Sponsorship in Kind
Gaming Grants Infinity Trust Pelorus Trust Four Winds North and South Grassroots Trust Sundry Income Fundraising Functions Website Income Cookbook Memorabilia Test Tickets Charity Golf Days Marquee Event Market and Exchange Rate Variances in Equities Total Other Revenue
14
2014
2013
40,990 5,404
27,930 10,785
46,394
38,715
73,716 73,716
34,210 34,210
186,860 0 4,500 11,196 15,798 218,354
138,459 7,660 4,000 22,658 20,000 192,777
91,887 4,507 6,227 4,923 3,843 27,786 42,557 212,334 394,064
63,626 7,239 5,619 5,820 0 0 0 131,193 213,497
732,528
479,199
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
17
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 4: OPERATING EXPENDITURE Note
Accident Compensation Accountancy and Finance Administration Fees Advertising / Promotions - Sponsorship in Kind Audit Fees Bad Debts Bank Fees Board Meeting Expenses Depreciation Fundraising Expenses/ Event Management General Expenses Insurance Investment Fees Legal Fees – Sponsorship in Kind Licences and Subscriptions Loss on Disposal of Fixed Assets Marketing, Public Relations and Entertainment Memorabilia Motor Vehicle Expenses Motor Vehicle Lease New Zealand Wellington 7s Office Rent Printing and Stationery, Postage and Courier Telephone and Internet Website Expenses Total Operating Expenditure
18
2014 $
2013 $
872 4,300 278,720 65,468 4,240 0 1,492 15,065 2,826 35,503 3,818 3,174 21,271 8,248 0 388 28,262 3,914 3,653 7,225 1,919 18,034 17,947 9,451 6,764
1,472 4,620 237,860 15,000 7,000 0 1,028 16,828 4,502 23,404 1,483 2,891 18,383 6,440 1,027 0 17,678 4,575 3,257 6,300 47,861 19,500 17,076 4,924 8,514
542,554
471,623
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 5: EXPENDITURE – GRANTS 2014
2013
244,020
367,259
3,478 0 15,000 (206) 18,272
4,826 14,270 17,666 0 36,762
262,292
404,021
Cost $
Accumulated Depreciation $
2014 Book Value $
18,100 3,500 21,600
12,259 3,024 15,283
5,841 476 6,317
Cost $
Accumulated Depreciation $
2013 Book Value $
15,903 3,500 19,403
9,759 2,310 12,069
6,144 1,190 7,334
Injured Player Grants Grants – Injured Players General Grants Attitude Awards NZ Wheelchair Rugby Billboard NZ Wheelchair Rugby Miscellaneous Total Expenditure
NOTE 6: FIXED ASSETS
Office Furniture and Equipment Website
Office Furniture and Equipment Website
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2014 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
19
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 7: INVESTMENTS GENERAL – FIXED INTEREST 2014
2013
Cost $
Market Value $
Cost $
Market Value $
80,000
62,400
80,000
58,400
ANZ National Bank Limited $430,000 at 5.28% Perpetual Bonds
430,000
433,010
430,000
421,400
RaboBank Nederland Preference Shares $350,000
350,000
329,000
350,000
323,400
ASB Bank Limited $250,000 at 6.65% due 15/06/19
250,000
263,816
0
0
1,110,000
1,088,226
860,000
803,200
Fixed Interest Investments Infratil Limited $80,000 Perpetual Bonds
Less Impairment Provision
0
0
1,110,000
860,000
It is the Foundation’s policy to hold all investments to maturity. Therefore it has been deemed appropriate to record any write down of investments to their redeemable value upon maturity.
INVESTMENTS GENERAL – EQUITIES 2014
2013
Market Value $
Market Value $
New Zealand Equities
787,081
720,330
Offshore Equities
823,907
787,532
1,610,988
1,507,862
During 2009 the Trustees introduced a revised Statement of Investment Principles (SIPO) to guide them in their investment decisions. The SIPO gives the Trustees discretion to invest in equities. On advice from JB Were they elected to do so in 2010, 2011, 2012, 2013 and 2014. It is the Foundation’s policy to record all equity investments at their current market value. This is considered the most appropriate valuation method given the risk associated with this investment. Therefore, the Foundation must record any variance between the purchase cost of the equities and the relative value of the equities at balance date. Market and Exchange Rate Variance in Equities at year end: $212,334 (2013: $131,193).
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NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 8: INVESTMENTS NZRF – FIXED INTEREST
2014
2013
Cost $
Market Value $
Cost $
Market Value $
Infratil Limited Bonds $250,000 at 8.5% due 15/11/15
250,000
259.916
250,000
264,848
IAGFA Insurance Australia Group Ltd $250,000 at 7.5% Subordinated Bond
250,000
262,250
250,000
262,500
Westpac NZ Limited $200,000 at 5.545% due 20/09/18
200,000
210,404
200,000
203,597
Auckland City Council $275,000 at 6.52% due 29/09/17
275,000
296,906
275,000
295,071
975,000
1,029,476
975,000
1,026,016
Less Impairment Provision
0
0
975,000
975,000
It is the Foundation’s policy to hold all investments to maturity. Therefore it has been deemed appropriate to record any write down of investments to their redeemable value upon maturity. NOTE 9: TAXATION New Zealand Rugby Foundation Inc is a registered Not for Profit Charitable Organisation and is exempt from income tax under Section CB4 of the Income Tax Act 1994. NOTE 10: TRUSTEE REMUNERATION No remuneration has been paid to the trustees; they are providing services on a voluntary basis.
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NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2014
NOTE 11: CONTINGENCIES There are no contingencies at year end. (2013: Nil) NOTE 12: CAPITAL COMMITMENTS There are no capital commitments at year end. (2013: Nil) NOTE 13: LEASE COMMITMENTS The Foundation leases office space at Sport Auckland House, the agreement may be terminated by either party giving six months written notice. Lease Commitment at year end: $9,000 (2013: $9,000) NOTE 14: SPONSORSHIP IN KIND During the 2014 financial year the Foundation received non-cash sponsorship from Matua, Adidas, NZ Rugby World, DB, Claymore Partners Ltd and Panasonic. The total amount received of $73,716 has been shown as income under Sponsorship, with corresponding entries against the Legal Fees and Advertising expenses. (2013: $34,210). NOTE 15: RELATED PARTY The Trustees of the Board have a special responsibility to co-ordinate with the New Zealand Rugby Union in giving effect to the objectives of the Foundation. In order to monitor this, Wayne Peters, a director of the New Zealand Rugby Union is also a trustee of this Foundation. The Foundation received grants from the New Zealand Rugby Union during the year for use in general operations of the Foundation. NOTE 16: CHANGE OF NAME The entity has changed its name from Rugby Union Foundation of New Zealand Incorporated to New Zealand Rugby Foundation Incorporated on 14 September 2013.
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AUDITOR’S REPORT
Crowe Horwath New Zealand Audit Partnership Member Crowe Horwath International
Level 29, 188 Quay Street Auckland Central 1010 New Zealand Tel +64 9 303 4586 Fax +64 9 309 1198 www.crowehorwath.co.nz
INDEPENDENT AUDITOR’S REPORT To the Trustees of The New Zealand Rugby Foundation Report on the Financial Statements We have audited the financial statements of The New Zealand Rugby Foundation on pages 12 to 22, which comprise the statement of financial position as at 31 December 2014, the statement of financial performance, and statement of movements in accumulated finds for the year then ended, and a summary of significant accounting policies and other explanatory information. Trustees’ Responsibility for the Financial Statements The trustees 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 trustees 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 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 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. Other than in our capacity as auditor we have no relationship with, or interests in, the foundation. Opinion In our opinion, the financial statements on pages 12 to 22 present fairly, in all material respects, the financial position of The New Zealand Rugby Foundation as at 31 December 2014, and its financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand.
Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath is a separate and independent legal entity. SUPPORTING OUR SERIOUSLY INJURED PLAYERS
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AUDITOR’S REPORT
Crowe Horwath New Zealand Audit Partnership Member Crowe Horwath International
Level 6, 51 Shortland Street Auckland 1010 New Zealand PO Box 158 Auckland 1140 New Zealand Tel +64 9 303 4586 Fax +64 9 309 1198 Crowe Horwath www.crowehorwath.co.nz New Zealand Audit Partnership Member Crowe Horwath International
Opinion
Level 29, 188 Quay Street Auckland Central 1010 New Zealand +64 9 303 4586 all Tel material respects, the Fax +64 9 309 1198 December 2013, and its www.crowehorwath.co.nz
In our opinion, the financial statements on pages 14 to 24 present fairly, in financial position of New Zealand Rugby Foundation Incorporated as at 31 financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand. Report on Other Legal and Regulatory Requirements We have all the information andRequirements explanations that we have required; and Report on obtained Other Legal and Regulatory
In our opinion, proper accounting records have been kept by the foundation as far as appears from our We have obtained all the information and explanations that we have required. examination of those records.
In our opinion proper accounting records have been kept by the foundation as far as appears from an examination of those records.
CroweHorwath HorwathNew NewZealand ZealandAudit AuditPartnership Partnership Crowe CHARTERED ACCOUNTANTS CHARTERED ACCOUNTANTS 12 March 2013 3 March 2015
Matters relating to the electronic presentation of the audited financial statements This auditor’s report relates to the financial statements of New Zealand Rugby Foundation Incorporated as at 31 December 2013 included on New Zealand Rugby Foundation Incorporated website. The Trustees are responsible for the maintenance and integrity of the Foundation’s website. We have not been engaged to report on the integrity of the Foundation’s website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. The auditor’s report refers only to the financial statements named above. It does not provide an opinion on any other information Matters Relating to the Electronic Presentation of the Audited Financial Statements which may have been hyperlinked to or from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements This auditor’s report relates to the financial statements of The New Zealand Rugby Foundation for the year ended 31 December and related auditors’ report dated 12 March 2014 to confirm the information included in the audited financial statements 2014 included on The Rugby Union Foundation of New Zealand website. The Trustees are responsible for the maintenance and presented on this website. integrity of the foundation’s website. We have not been engaged to report on the integrity of the foundation’s website. We accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other Thejurisdictions. auditor’s report refers only to the financial statements named above. It does not provide an opinion on any other information which may have been hyperlinked to or from these financial statements. If readers of this report are concerned with the inherent risks arising from electronic data communication they should refer to the published hard copy of the audited financial statements and related auditor’s report dated 3 March 2015 to confirm the information included in the audited financial statements presented on this Horwath website.New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is Crowe a separate and independent legal entity.
Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in 26 other jurisdictions.
Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath is a separate and independent legal entity.
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ACKNOWLEDGEMENTS
There are so many wonderful people, companies and organisations who do incredibly generous things for us by way of supporting our events, donating money, giving us their time and expertise. We also wish to acknowledge many organisations with whom we work side by side with mutual values and goals. New Zealand Rugby Infinity Foundation Limited Panasonic NZ Limited Domion Breweries Ltd Lion Nathan Ltd NZ Rugby World Four Winds Grassroots Trust Matua Wines North and South Trust Limited Pelorus Trust Adidas NZ Ltd D3 Tape Claymore Law Emirates NZ Harlequins RFC Centurions RFC NZ Barbarians RFC Saracens RFC Cantabrians RFC Massey RFC Takapuna RFC AIG ACC Alan Johnstone Aotearoa Safaris Amy McNicol Argentinian Rugby Union ArtCom Design & Print Attitude TV Auckland Conventions Auckland Junior Rugby Auckland RFU Auckland Spinal Unit Australian Rugby Union Bay of Plenty RFU Barworks Ltd Be Accessible Ben Marris Beverley Hills Health and Beauty Blair Strang Buddy Bid Buller RFU Burwood Spinal Unit Brad Roebuck Brady Williams Brick Bay Sculpture Trail Bryan Johnson
Canterbury RFU Care Group Limited Cath Lewis Casa Coyete Chris Vincent CKS Thompson Framing Clarkson Electrical Counties Manukau RFU Craig Carian Crew Club Crowe Horwath Dave Gibson Dark Horse NZ Ltd Dave Dowden David Paurour David Pratt Derek Baldwin Devon Funds DIVE Tutukaka East Coast RFU Eastbank Holdings Eden Park Trust Board (events) Efficient Couriers Ernie Downes Eric Roy Essentially Group Experience Group Fleur Tisdale Francis Travel Marketing Framington Wines Gary Chapman Gavin Nell Graham McNally Gill Budden Global Destination Forwarding Ltd Grant Calder - Volvo Ocean Race Grant Fox Hawke’s Bay RFU Horowhenua Kapiti RFU House of Travel HOT Events Humes Pipeline Systems Ian Farquhar Ian Morris Invacare Jan Oram J B Were John Clayton John Knowles
John Miller Law Joy Organic Candles Keri Dempster Kim Crawford Wines King Country RFU Kirkpatrick Wines Kris Morris-Vette Lance Fletcher Leigh Sawmill Café Manawatu RFU Marcus Woodhouse Mark Power Mark Vincent Mary Childs Massey Rugby Club Matakana Farmers Markets Melodie Robinson Mid-Canterbury RFU Mike Copeland Mission Estate Winery Mudbrick Winery Murray Hansen Mizuno NZ Moretons Bar and Restaurant Neat Meat Ltd Nicky Hobbs Nigel Sterling - Centurions RFC Hon Nikki Kaye - MP Central Auckland. North Harbour RFU North Otago RFU Northland RFU Not For me Charitable Trust NZ Paralympics NZ Rugby Players Association NZ Spinal Trust NZ WheelChair Rugby Ocean Ranger Oceans Resort Hotel Oliver Lee Publising Omaha Golf Club Otago RFU Paul Rolten Poverty Bay RFU Ricky Faint Richard Turner Roana Carran Rob Marshall
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ACKNOWLEDGEMENTS continued
Rob Nichol Rocpac International Roger and Ruth Spooner Rowana Curren Ryan Henaghan Sally Babington Sam Burton Shane Cortese Shona Driver Sir Colin and Verna Lady Meads Slumberzone Beds South African Rugby Union South Canterbury RFU Southland RFU
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Steve Arnold Steve Baden Taranaki RFU Tasman RFU Terry Hodges – Air New Zealand Thames Valley RFU The Black Ferns The Blues The Chiefs The Crusaders The Edge – Auckland The Food Store – Joana Diment The Food Store – Julie Christie The Highlanders
The Hurricanes Thomas Mayo Tony Fraser Tony Veitch Vince Payne Waikato RFU Wairarapa Bush RFU Waka Nathan Wanganui RFU Wellington RFU West Coast RFU Will Hall William Warn Ltd YOURS Design by Andrew Henry
MEMBERS LIST
Michael & Jemma John Alexander Gary Allen Peter Anson Andrew Archer Karen Archer Glenn Beattie S Beck Michael Beech Matthew Bellingham Richard Biddles Barry Boyden Triton Bricklaying Bill Brian Barry Brown Stewart Browne Wally Buchanan Nigel Burton Charles Cato Matt Clark David Clarkson RAF & JR Clubb Chris Cole Sam Coleman Andrew Collett Fay & Frank Colthurst Brett Connolly Hilton Cook Terry Cope Mike Copeland Rex Corbett Greg Cowie B.J Craies Phil Cuff Wayne Cuff Andy Dalton Anson Davies Gary Dawson Roger Dold Frank Dougherty Ken Douglas Stuart Douglas John Dowling Isaac Driver Wayne Dunning Roger & Sandra Easterbrook Lennocol Enterprises Simon Eriksen William Eriksen Tom Fail Rex Faithfull Ian Farquhar Paul Farrugia Ken Ferguson
Allan Michael Finlay Daniel Finnigan Rob Fisher Steve Fisher Grant Fox Bill Francis Andy & Trish Gabb Crispin Gardner Anne Gates Tony Gates Phil George Colin G Gibbons John Gilbert Keith G Gillanders Sir Colin Giltrap George Goodhen Sir D J Graham Andy Ham David Handley Heaney & Co Jim Heappey Family E.F Heath Robert Van Heiningen David Henry Higgins Contractors Limited Grant Hill Richard Hill Tracey Hill Nicky Hobbs Peter Hogg Aubre Holdings Lewis & Simon Holdworth Darryn Holyoake Jeremy Horrocks Sam Howard Elliot Hudson Andrew Hughes Phyllis Huitema Peter Jalfon Mike Jarvis Kirsty Johnson Bruce Johnston David Johnston Monett Johnston Alan Jones Harvey Juran Lee Keegan Bruce Kenny Bevan Kidd John Knox Geoffrey Lamb Alan Lang Mike Leggett Andy Leslie
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Raymond Lincoln John Lockie Bryce Lott C J Monro Ltd Harbour City Financial Services Ltd Stonehurst Accommodation Ltd R M Luxford Peter Mac Paul Martin Chris & Kay Mason John R Mason Gary McDonald Sam McGredy Ross McIntosh Paul Mckay Donald McKenzie Garry McLean Doug McLeod Garry McNaught Lady Verna Meads Sir Colin Meads Mauiree Milliken James Mizen D & J Moloney Roger Moore Fred Morgan Maria Morgan Dr William Thomas Morris V.N Murdoch Kevin Murphy K A Nelson Rob Nichol Warwick Nicoll Pat O’Connell Dannie O’Shea Paul Raymond Olney Ron Palenski Jeff Parsonson Lady Glennis Pettigrew Sir Russell Pettigrew Merle Picton Murray Pierce Brian Piper Mark Pittaway Noel Plumer Neil Pollock W C Pollock Family Tony Potter Philip Price Ann Pullar Peter Reid W.J Reilly Border Rugby Sports Club RFC
East Coast Bays RFC Takapuna RFC Wasps RFC Poverty Bay RFU Waikato Rugby Union RFU Wellington RFU Peter Richardson The College Rifles Rugby Colleen Ritchie Frank Ritchie Mathew Sale Patrick Samson Greame Scott Walter Smaill I Smith Ben Snelling Tony Southall Roger and Ruth Spooner William Stewart Donna Taminey Alton Taylor Robyn Taylor Stuart Taylor E.W Thomas Paul Thomson Gerard van Tilborg Andrew Timms Fleur-Maree Tisdale Stephen Titter Mike Tomlinson Lindsay Townsend Maurice Trapp Simon Tremain Gardner Family Trust Kerry Verner Joe Walls Denny Warburton Tom Warren Watts & Hughes Construction George Wheeler Peter White M L D Williams Norm Williams Don Wilson Allan Wolfe Neil Wolfgram Murray Wright Richard Wyeth Brian Frederick Young Ian Young Paul Younger Simon Oxnam Grant Willoughby
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NEW MEMBERS (SINCE AUGUST 2014)
Bernie Allen Matthew Auty Joe Blundell Stefan Brook Malcolm Campbell Roger Chambers Simon Cheesman Jerome Churchman Tim Clark Wellington Football Club David Cowley Davina Crouch Stuart Driver Dai Evans Elvea Faingaa
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Fiona Fenwick Andrew Flexman Kerry Gemmell Adam Gilshnan Micky Gogan Paul Handley Karen Hazard Esther Henry Julie Hokianga Charlotte Hood Emma Kaye Lisa & Aroha Kingi-Bon Belinda Leckie Elizabeth Leiper Karl Lindner
Isabelle Lynch Marilyn MacRae Kas and Gavan McEntyre Steve McHardy Warren McLean Marie McNaught Madelaine Moulds Peter O’Carroll Kirsten Patterson Mike Pollock Alastair Pratt Deedee Pratt Ron Reedy Jennie Reid Gwendoline Rewcastle
Catherine Sawyer Roger Scherer Kelly Scott Layne Shepherd C K Smith Rod Smith Roger Sowman Margaret Sturmfels Martin Su Kristine Sutcliffe Craig Thomson John Upton Craig Woodhouse Will Caccia-Burch
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