SUPPORTING OUR SERIOUSLY INJURED PLAYERS
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013
www.rugbyfoundation.com
TABLE OF CONTENTS
Notice of Annual General Meeting
3
Officers 2013
4
Chairman’s Annual Report
5–6
Chief Executive Officer’s Report
7 – 11
Treasurer’s Report
12
Financial Statements
13
Statement of Financial Performance
14
Statement of Movements in Accumulated Funds
15
Statement of Financial Position
16
Notes to the Financial Statements
17 – 24
Auditor’s Report
25 – 26
Acknowledgments
27
Members List
28
In Loving Memory of
Willie Halaifonua 11 March 1986 – 23 July 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
1
Eden Park Luncheon 2013
Nick & Nicola Chisolm. Married on 29 December 2013 Photography – Angela Haig-McAuliffe www.angelajanephotography.co.nz
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given of the 27th 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 15 April 2014. AGENDA (a) Consideration of the Annual Report for the year ended 2013. (b) Consideration of the Financial Statements for the year ended 31st December. (c) Election of Trustees.
Ratification of new Trustee.
In accordance with the rules, Sir John Graham and Maurice Trapp retire by rotation.
Maurice Trapp is available for re-election.
Sir John Graham has declared himself unavailable for re-election.
Retirement of Trustees.
(d) General Business. Lisa Kingi CHIEF EXECUTIVE OFFICER THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
3
OFFICERS 2013
Patron: Founding President: President:
Sir Colin Meads Sir Russell Pettigrew F.Inst. D, FCIT (K.T) Sir D.J (John) Graham (C.B.E)
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: Maurice Trapp (Chairman), Sir John (D.J.) Graham (C.B.E, President), Mark Peters (Treasurer), Colin Gibbons, Richie Guy, Andy Leslie, Tane Norton, John Leslie, David Latta, Simon Tremain, Bryan Williams, Dr. John Mayhew, Gerard van Tilborg (NZRU representative) Honorary Life Members:
Sir Russell Pettigrew (KT), Sir Colin Meads (DCNZM MBE)
Chief Executive Officer 2013:
Lisa Kingi
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
The Board of Trustees met for a strategic planning day in May 2013. We decided that our 26 year old Constitution needed updating. While the old one has served us well, changes aplenty such as professional rugby and regular funding by New Zealand Rugby have had significant influence on how we operate. The new Constitution was ratified at a Special General Meeting in September. The Trustees are very clear on our core purpose of supporting our VIPs (Very Injured Players), and their families. However there is less clarity around the definition and degree of injury, and who, among NZ rugby players we take responsibility for. Professional Rugby has changed the original approach of the Foundation, - “looking after all New Zealand rugby players”. Today, the professional players have separate insurance and ongoing care programs. Our problem here is around the certainty that no player can fall through the gap between the two – the professional group and the amateur. We will be working to get greater assurance around this over the next few months. New Zealand Rugby very kindly agreed to raise the level of financial support that they provide to the Foundation for VIP Grants. This gives us the confidence that we can meet increased pressure on our funding in those bad years of high number injuries. It’s very pleasing to note that 2013 was the second successive year of no spinal cord injuries, and we sincerely hope that this can be continued. On a much sadder note, we did have an unfortunate death as a result of a head injury and haemorrhaging, and we pass our condolences to the family and friends of Willie Halaifonua. Mark Peters has succinctly summarised our financial situation in his report. I concur that we did not achieve the revenue streams that we had hoped for, and that we need to address this in the coming year. The Foundation must not take its focus away from raising funds to support the Grants that it supplies. This revenue allows us to balance our first priority of supporting our VIPs, with our second priority of retaining funds to protect our future activities. Our strategic planning day allowed us to deliberate on succession within the Board. During the year we welcomed BG Williams and Simon Tremain as new Trustees of the Foundation. As a charitable organisation within the realm of rugby we are fortunate to have the quality, experience and passion to continue giving to our sport and the people who cherish this. BG adds to a growing list of past New Zealand Rugby Presidents who have been Trustees of the Foundation and Simon gives us the link back to Kel Tremain who created the Foundation originally. We are also keen to have a balance in the skill sets and experience of our Board members. Dr John Mayhew has already provided us with valuable knowledge around serious injuries, rehabilitation and recovery expectations. Having a medical practitioner as part of the Board gives us quality advice in an area that others of us have very limited experience. I look forward to having John’s position as trustee ratified today. Succession, of course, has two sides to it. People enter and at some stage, it’s time for them to leave. Today, DJ (Sir John Graham) will be presiding over his last AGM for the Foundation. DJ joined the Foundation in 1995 and was asked by our Founding President – Sir Russell Pettigrew – to take on the role of President of the Foundation, at the AGM in 1996.
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
5
CHAIRMAN’S ANNUAL REPORT
DJ does not seek accolades; instead he applies his wisdom and leadership to a task in hand. He sorts out the priorities, focuses on the context rather than the content, and so provides all around him with clarity of purpose. DJ has been an inspirational leader for the Rugby Foundation, his role as President of this organisation has positioned us as the leading charity within our sport throughout the world. We now have in excess of 100 VIPs that the Foundation supports in some degree. All these, and their families and friends owe a great debt to DJ for his contribution to the Foundation and its ongoing ability to fund projects and support new injuries. From a personal viewpoint, it’s been an honour to have had the guidance and occasional mentoring from someone as experienced, focused and caring as DJ. The Foundation will miss you and will always have a debt of gratitude for your willingness to serve rugby in the way that you have. Also stepping down at this AGM is Richie Guy who is another stalwart of the game at all levels and an ardent believer in the cause of the Foundation. Richie has taken on many projects during his time as trustee. On the financial side we can thank him for his resolve in reinvesting surplus revenue into capital to protect our core investments against inflation. He has been equally passionate about safety in the game and asking for greater focus on safety at both set piece and general play. A few years back, Richard Hill from Hawkes Bay, and one of the original trustees, took a leave of absence due to issues at work. Richard provided us with the legal knowledge we required and was also part of the team that developed our original Constitution. Like all trustees of the Foundation, Richard has given his time and effort to help others who have suffered life changing injuries. We acknowledge this support and thank him for the service he provided. So, succession will mean that some people will come and others will go. We still have a very strong Board of Trustees and we have a wonderful management team of Lisa as CEO and her support team, Ben and Gwendoline. This team put a huge amount of effort and passion into our VIPs and all those impacted with a new serious injury. They also work hard to keep communication flowing with our key stakeholders, sponsors and the gaming trusts that provide us with such important funding. We pay tribute to and sincerely thank all of you. Maurice Trapp CHAIRMAN
6
CHIEF EXECUTIVE OFFICER’S REPORT
I would like to begin by acknowledging our VIPs and their families. I am grateful for their energy, inspiration, mateship, and support. Two years down the track I feel like I learn from each of them so often. They gave us the drive to get through last year which was pretty challenging fundraising wise and more specifically, on the field of play. The Rugby Foundation partners 101 VIPs. This includes 87 VIPs in chairs, nine walking tetras, one leg amputee, two with the use of one arm only, two with traumatic brain injury (TBI) and one with locked-in syndrome. Our most senior is 68 years old, having been in his chair for 48 years; the youngest was injured in 2011 and turned 18 in December 2013. People I have visited at home and/ or have met face to face
72
Those I know well by email and phone.
15
Those I have not met and who have not responded to outreach.
14
My goal is to have visited every single VIP by the end of this year. On the field… Whilst we are delighted that we have no new VIPs on our books, we were however kept extremely occupied with near miss incidents. These players are cognisant of how lucky they are to fall so exquisitely well on the right side of the ledger …a few millimeters either way might have seen very different outcomes. There are still two major surgeries to occur. Given there are some 150 000 players registered who play some 30 weekends of the year we’re thankful for this perspective of randomness in these accidents. Young Jarrod Evans was injured in May. I remember hopping in my car and driving to meet him and his lovely partner Kate at Waikato Hospital. Little did I know what was coming in the next few months. Congratulations to these players and their team mates, Mums, Dads, Partners, siblings and kids, with how they have coped at the scenes and with rehab and recovery. An aspect that was most surprising is that when we reached out to these players and their families, not even one of them knew of the New Zealand Rugby Foundation. We have a lot of work to do in profile building! Following is a list of the players who are walking around either with steel rods in the spine, a titanium eye socket and even a metal plate in the head. Some of them might well need to remember a letter of explanation when passing through airport security. Respect and credit to the surgeons who performed such outstanding work on these players. Jarrod Evans
Prop/Hooker
Fraser Tech Premier,Waikato
No 8
Hauraki Plaines College, 1st XV, Thames Valley
Aneru Kora
Wing
Jason Nawi
Halfback
Jaycob Hayle John Cocker
Matthew Martin Liam Gott
Tere McEntyre Robin Kivell
Logan Moore
Flanker
Halfback Hooker
Flanker Centre Centre
Eastern Pirates, Murapara, Bay of Plenty Ruatoki, Div 1,Bay of Plenty
College Rifles Premiers, Auckland
Kavanagh College U18 1st XV, Otago
Westlake Boys High 6th Grade, North Harbour Takapuna Presidents, North Harbour
Whangamomona Snrs 3rds, Taranaki
Southland Country Seniors , Southland
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
7
CHIEF EXECUTIVE OFFICER’S REPORT
We were greatly saddened by the tragic loss of Willie Halaifonua. On Saturday 20 July Takapuna were playing Massey in a keenly contested match. A seemingly innocuous knock to Willie’s head caused acute subdural haemorrhage. He passed away peacefully surrounded by his friends and family on Tuesday 23 July. We have worked closely with Willie’s partner Turea and have set up the Viliami Alamoni Halaifonua Trust. On Saturday 12 April the inaugural Viliami Alamoni Halaifonua Trophy will be played for between his club Takapuna and Massey. The clubs have set this up as an annual match to pay respect to their team mate. Huge thanks to all of the rugby supporters who collectively donated $70 000.00 to the trust fund. We particularly acknowledge the generosity of all those who organised and attended the Takapuna Fundraising Dinner, the Massey Luncheon and the Carbine Club Luncheon. These funds, coupled with the All Player Insurance pay-out from AIG affords some solace to know that there is a solid framework in place to manage and care for Turea and in particular the late Willie and Turea’s children, Julius and Leila. Off the field... We’ve had a busy and productive year. Here are some milestones of 2013: • A refreshed Strategic Plan, thus refining our core focus, what we do and what we don’t do. The Board as a group worked through some pertinent questions; Why is the Rugby Foundation here? What is it that we will focus on? How will we do that? Who will we partner with? This diagram summarises the outcome;
Enabling Life’s Opportunities
Resource and / $$$ SUPPORT PREVENTION ADVOCACY RELATIONSHIPS (Built on a foundation of) OUR LEGACY
Our business is the welfare of all community and non-professional1 rugby players in New Zealand. • During this session it was agreed that an updated Constitution was essential. This was ratified on Saturday 14 September 2013 at a Special General Meeting. • Future-proofing the organisation, by implementing best practice corporate governance into our systems and structures. This includes a Finance2 manual and related policies as a framework in which to operate.
1 Professional Player Welfare falls under the umbrella of New Zealand Rugby and the New Zealand Rugby Players Association. 2 Written by Angela Davies
8
CHIEF EXECUTIVE OFFICER’S REPORT
• I mplementing a Records Management upgrade; this includes secure and confidential individual management system for all VIPs. (Hard copy and soft copy). • I mplementing a standard Trust Deed document for VIPs which stipulates that the Rugby Foundation has to approve the makeup of the Trustees and has the right to appoint a representative if it so wishes. This is to ensure the security of focus of the Trust Deed always remaining on the beneficiary i.e. the VIP only. Super active VIPs... In April we hosted a Strategic Workshop for New Zealand Wheel Chair Rugby. This has assisted them in redefining their purpose as they quest to qualify for Rio 2016. “New Zealand Wheelchair Rugby – providing a home for inspiration, participation and excellence” • I t is important to note that this is not just about the elite athletes but as much those who want to play for fun, mateship and fitness. We donated three new rugby wheelchairs to the newly formed Dunedin team to assist with growth from the bottom up. • I n June we facilitated this piece of work. Co-Captain of the Wheel Blacks Gavin Ralton (not a rugby injury) secured the 6m x 2m billboard free of charge. We managed to get Cory Jane to take part in the fun with Gavin. New Zealand Rugby’s ad agency Augusto came to the party with a massively reduced production fee. We love being able to assist with shifting perceptions!
• A number of our VIPs have done extremely well on the international stage in cycling, shooting and kayaking. One of our VIPs, Neil Cudby, accompanied Catriona Williams in a massive fundraising effort to hand-cycle to Mt Everest base camp. • A number of our VIPs have excelled in the pursuit of their painting. • T he opening of the new deck at the Auckland Otara Spinal Unit was inaugurated at the AGM last year. This was paid for by the Rugby Foundation and the NZ Spinal Trust. The deck is great! Large and ramped down to the garden to afford easy access thus creating an outdoor private space for patients. • Ben has steered the website to quite some considerable growth. This is so important in raising our profile. Visits Unique Page Views
January 735 535 1777
July 856 560 1924
November 2319 1795 3913
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
9
CHIEF EXECUTIVE OFFICER’S REPORT
Referrals to our site from Social Media channels have increased 492% and accounts for over 65% of all visits. Essentially what the table on the previous page shows is that our driving mechanisms and awareness campaigns to get people to the site are working really well. The goal? Acquire, retain, add value, monetize… the big challenge. • W e have made steady progress on the membership/database list. This is a major focus for 2014 – to grow our donor base. It is now “clean” and up to date. Now it’s time to grow. Income... has been disappointing. We have not showed as much of a profit as we planned to events wise. Once again, some events could not be proceeded with due to an over-crowded fundraising event market. To some extent this was a resource problem, as the near miss issues kept us very occupied and afforded me less time to focus on income streams as well as the management of our systems. Having this year employed Gwendoline Rewcastle as our Executive Assistant will rectify this and I know will free Ben and I up meaningfully. We would like to acknowledge the incredible continued support from many stalwart supporters: • The Centurions in Wellington hosted yet another sterling Friday afternoon luncheon prior to the Bledisloe. Nick Farr-Jones was his inimitable charming self. The irrepressible Mike Copeland played his as usual excellent MC role. • The Carbine Club hosted their annual luncheon and we were once again named the recipient. Phil Gifford did a marvellous job as MC. Grant Fox and Mel Robinson shared the stage just before the Super Rugby Final and the announcement of the first 2013 All Black squad. What a privilege to listen to the banter of such astute rugby minds. • The Hamilton Harlequins once again generously donated funds as a result of the dinner prior to the Argentinian Test. Ambassador Fernando Daniel Escalona was the guest speaker. • Our own Rugby Foundation annual luncheon occurred before the Springbok match in September. Ian McIntosh was joined on stage with BG Williams and Sir Colin Meads. Our grateful thanks to Cory Jane for adding such humour and insight. The ever-wonderful Tony Veitch who continues to do such great work for us. This event is ably managed by The Experience Group and we are indebted to Warren and Pippa for their dedication to our cause. • The Barbarians welcomed us into their very lovely club at Eden Park post lunch for a Pre-Test gathering. • The many many individual donors who give so very generously at events and also directly into our bank account. Special thanks also to the Infinity Foundation. Their support truly enables us to focus on our core work. We would also like to acknowledge the North and South Trust, Pelorus Trust and the Four Winds Foundation Limited. Continued support from Panasonic, Lion Nathan, Matua Valley and adidas is much appreciated. In conclusion I would like to take the opportunity to thank my colleagues Ben Sturmfels, Angela Davies as well as Gwendoline Rewcastle who has recently joined our team. I would also like to acknowledge Valerie Joy Smith who has so proficiently managed minute-taking at Board Meetings and AGMs for seven years. She is stepping down from this role due to ill health. Thanks for the support and team work. We would simply be unable to provide the assistance for 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.
10
CHIEF EXECUTIVE OFFICER’S REPORT
To our Chairman Maurice Trapp and President Sir John Graham and the current Board of Trustees, thank you for the leadership and sage advice. Thank you for the development and growth opportunities you afford me. DJ and Richie, this is not goodbye, as I know I can still call on you to visit VIPs and also lend a firm hand when I require your astute words of guidance. On behalf of the VIPs may I salute you both for the incredible years of service. Lisa Kingi Chief Executive Officer
FIVE YEAR HIGH LEVEL COMPARISONS INCOME
$275,000 $225,000 $175,000 $125,000 $75,000 $25,000 $-25,000
2009
2010 Investments
2011 NZRU
Gaming Grants
Donations
Fundraising Events
2012
2013
Sponsorship Website
EXPENDITURE
$600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $-
2009
2010
Grants Injured Players
2011 Grants General
2012
2013
Operating Expenditure
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
11
AUDITOR’S REPORT TREASURER’S REPORT
2013 was quite a hard year financially as the Foundation discovered like other similar organisations that fundraising events were becoming harder to arrange and to achieve success at. While the end result for the year was still a reasonable surplus, there was less events and activities income than had been budgeted and there was quite a demand for funding of our VIP’s needs. Our investments provided reasonable returns once again (though less than 2012) and while some of that was non cash in terms of unrealised growth in market values, it did make the end balance sheet quite healthy. Given that meeting the needs for grants is a first priority over retention of income for growth in Capital Funds, the results for the year are somewhat tight. The result and end position is still reasonable, if not quite as good as was hoped. Lisa and her team along with the Board will be prioritising various items qualifying for grants in 2014. We must record very grateful thanks to New Zealand Rugby for increasing their grant to the Foundation by $50,000 per year from 2014. Another priority for 2014 will be to balance income and grants so as to continue to future proof the Foundation’s capital base and still be able to meet the prioritised needs of VIPs.
Main points from 2013 were: • Investment Income was down by $33,396, somewhat offset by an increase of $14,769 over 2012 unrealised value growth. • Non-Investment Operating Income was fairly flat against 2012, though Events Income was down, offset by Gaming Grants being up. • On the other hand Operating Expenses were up by $39,000. • Overall Net Income before Grants was $445,000 against $510,000 in 2012. • Grants made totalled $404,021 against $219,520 in 2012. • Bottom line surplus after Grants was $41,000 against $291,000 in 2012.
Overall the Foundation’s financial position remains healthy with some work required to tweak the operation slightly. Lisa and her team along with Accountant Angela Davies do an excellent job in looking after the Foundation Finances, and with astute Investment expertise from J B Were and good Financial Governance from my fellow Board Members/ Trustees the future for the organisation is sound. Mark Peters Treasurer
12
FINANCIAL STATEMENTS for year ended 31 December 2013
The Trustees present these financial statements for the year ended 31st December 2013. For and on behalf of The Rugby Union Foundation of New Zealand Incorporated.
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
13
STATEMENT OF FINANCIAL PERFORMANCE for year ended 31 December 2013
Note
2013 $
2012 $
2
187,303 250,000 437,303
220,699 250,000 470,699
38,715 34,210 192,777 82,304 0 131,193 479,199
44,607 24,812 129,848 137,791 19,289 116,424 472,771
Total Revenue
916,502
943,470
Expenditure Grants - Injured Players Grants – General Expenditure
367,259 36,762 404,021
203,133 16,387 219,520
471,623 471,623
432,662 432,662
40,858
291,288
Revenue Income from Investments Annual Grant NZRFU Revenue Other Revenue Donations Sponsorship Gaming Grants Sundry Income Gain on Sale of Bonds Market and Exchange Rate Variance in Equities Total Other Revenue
Other Expenditure Operating Expenditure Other Expenditure Net Surplus/(Deficit) of Revenue over Expenditure
14
7 3
5
4
The accompanying notes form part of, and should be read in conjunction with, these financial statements
14
STATEMENT OF MOVEMENTS IN ACCUMULATED FUNDS for year ended 31 December 2013
2013 $
2012 $
Net Income over Expenditure for the Year
40,858
291,288
Total Recognised Revenues and Expenses for the Year
40,858
291,288
Accumulated Funds at Beginning of Year
3,731,832
3,440,544
Accumulated Funds at Year End
3,772,690
3,731,832
The accompanying notes form part of, and should be read in conjunction with, these financial statements
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
15
STATEMENT OF FINANCIAL POSITION as at 31 December 2013
2013 $
2012 $
70,078 73,720 0 116,950 313 246 10,667 300,689 4,786 37 15,567 3,600
61,876 92 167,364 108,963 1,996 2,779 0 500,963 22,104 2,147 12,670 0
596,653
880,954
6
7,334
8,400
7
860,000 1,507,862 975,000
860,000 1,055,943 1,025,000
3,342,862 0
2,940,943 0
0
0
3,946,849
3,830,297
78,941 67,016 28,000 202
33,978 0 64,269 218
174,159
98,465
Accumulated Funds
3,772,690
3,731,832
Total Funds Employed
3,946,849
3,830,297
Note
Current Assets BNZ Cheque Accounts BNZ Savings Accounts BNZ Term Deposit JB Were Call Account (NZD) JB Were Call Account (GBP) JB Were Call Account (USD) JB Were Call Account (AUD) Westpac On Term Account Trade Accounts Receivable Interest Accrued Merchandise on Hand Prepayments 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
15
7 8
The accompanying notes form part of, and should be read in conjunction with, these financial statements
16
NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
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
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
17
NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
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 Auckland City Council AUD Call Account BNZ Accounts BNZ Term Deposits General GPG Finance Limited IAGFA Insurance Group Infratil Limited JB Were Call Account RaboBank Limited Trust Power Limited Wellington Airport Westpac Interest Accrued Dividends Received Total Income from Investments
18
2013 $
2012 $
32,121 17,930 95 459 3,569 13 0 18,750 24,417 11,435 11,629 0 18,750 5,027 0 43,108
46,421 22,640 0 68 6,892 3 20,750 18,750 24,635 11,285 12,950 9,606 18,750 6,620 0 21,329
$187,303
$220,699
NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
NOTE 3: OTHER REVENUE Note
Donations Memberships HomeCare NZ Sponsorship Sponsorship in Kind
14
Gaming Grants Infinity Trust Pelorus Trust Four Winds North and South Grassroots Trust Sundry Income Fundraising Functions Website Income Cookbook Memorabilia Test Tickets Bad Debts Recovered Gain on Sale of Bonds Market and Exchange Rate Variances in Equities Total Other Revenue
2013
2012
27,930 10,785
10,594 34,013
38,715
44,607
34,210 34,210
24,812 24,812
138,459 7,660 4,000 22,658 20,000 192,777
110,747 9,500 0 9,601 0 129,848
63,626 7,239 5,619 5,820 0 0 0 131,193 213,497
84,253 11,949 37,806 0 0 3,783 19,289 116,424 273,504
479,199
472,771
SUPPORTING OUR SERIOUSLY INJURED PLAYERS
THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
19
NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
NOTE 4: OPERATING EXPENDITURE 2013 $
2012 $
Accident Compensation Accountancy and Finance Administration Fees Advertising Area Schools Audit Fees Bad Debts Bank Fees Board Meeting Expenses Depreciation Fundraising Expenses/ Event Management General Expenses Insurance Investment Fees Legal Fees 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 Promotions/ Competitions Telephone and Internet Website Expenses
1,472 4,620 237,860 0 0 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 15,000 4,924 8,514
0 4,528 167,098 14,812 18,545 4,000 0 609 14,130 13,392 30,258 7,896 3,745 12,592 10,000 0 12,602 10,348 5,410 2,862 7,118 13,440 13,870 10,623 0 4,553 50,231
Total Operating Expenditure
471,623
432,662
Note
20
NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
NOTE 5: EXPENDITURE – GRANTS 2013
2012
367,259
203,133
4,826 0 14,270 17,666 0 0 0 0 36,762
0 5,000 0 3,023 2,604 400 5,000 360 16,387
404,021
219,520
Cost $
Accumulated Depreciation $
2013 Book Value $
15,903 3,500 19,403
9,759 2,310 12,069
6,144 1,190 7,334
Cost $
Accumulated Depreciation $
2012 Book Value $
12,467 3,500 15,967
7,042 525 7,567
5,425 2,975 8,400
Injured Player Grants Grants – Injured Players General Grants Attitude Awards Harlequin – Annual Camp NZ Wheelchair Rugby Billboard NZ Wheelchair Rugby International Rugby – Course Fees Massey Rugby Football Club West Coast Rugby Miscellaneous Total Expenditure
NOTE 6: FIXED ASSETS
Office Furniture and Equipment Website
Office Furniture and Equipment Website
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THE NEW ZEALAND RUGBY FOUNDATION INCORPORATED
ANNUAL REPORT 2013 SUPPORTING OUR SERIOUSLY INJURED PLAYERS
21
NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
NOTE 7: INVESTMENTS GENERAL – FIXED INTEREST 2013
2012
Cost $
Market Value $
Cost $
Market Value $
80,000
58,400
80,000
45,680
ANZ National Bank Limited $430,000 at 5.28% Perpetual Bonds
430,000
421,400
430,000
424,840
RaboBank Nederland Preference Shares $350,000
350,000
323,400
350,000
294,350
$860,000
$803,200
$860,000
$764,870
Fixed Interest Investments Infratil Limited $80,000 Perpetual Bonds
Less Impairment Provision
0 $860,000
0 $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 2013
2012
Market Value $
Market Value $
New Zealand Equities
720,330
477,914
Offshore Equities
787,532
578,029
$1,507,862
$1,055,943
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 and 2013. 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: $131,193 (2012: $116,424).
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NOTES TO THE FINANCIAL STATEMENTS for year ended 31 December 2013
NOTE 8: INVESTMENTS NZRFU – FIXED INTEREST
2013
2012
Cost $
Market Value $
Cost $
Market Value $
Infratil Limited Bonds $250,000 at 8.5% due 15/11/15
250,000
264,848
250,000
269,343
IAGFA Insurance Australia Group Ltd $250,000 at 7.5% Subordinated Bond
250,000
262,500
250,000
269,000
Westpac NZ Limited $200,000 at 5.545% due 20/09/18
200,000
203,597
0
0
Auckland City Council $275,000 at 6.52% due 29/09/17
275,000
295,071
275,000
308,387
0
0
250,000
258,522
$975,000
$1,026,016
Wellington International Airport Limited $250,000 at 7.5% due 28/11/13
Less Impairment Provision
$1,025,000 $1,105,252
0
0
$975,000
$1,025,000
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 year ended 31 December 2013
NOTE 11: CONTINGENCIES There are no contingencies at year end. (2012: Nil) NOTE 12: CAPITAL COMMITMENTS There are no capital commitments at year end. (2012: 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 (2012: $9,000) NOTE 14: SPONSORSHIP IN KIND During the 2013 financial year the Foundation received non-cash sponsorship from Claymore Partners Ltd and Panasonic. The total amount received of $34,210 has been shown as income under Sponsorship, with corresponding entries against the Legal Fees and Advertising expenses. (2012: $24,812). 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, Gerard van Tilborg, 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 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 www.crowehorwath.co.nz
INDEPENDENT AUDITOR’S REPORT To the Trustees of New Zealand Rugby Foundation Incorporated Report on the Financial Statements We have audited the financial statements of New Zealand Rugby Foundation Incorporated on pages 14 to 24, which comprise the statement of financial position as at 31 December 2013, the statement of financial performance, and statement of movements in accumulated funds for the year then ended, and a summary of significant accounting policies and other explanatory information. Trustee’s 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.
Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity.
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25
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 www.crowehorwath.co.nz
Opinion In our opinion, the financial statements on pages 14 to 24 present fairly, in all material respects, the financial position of New Zealand Rugby Foundation Incorporated as at 31 December 2013, and its 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 obtained all the information and explanations that we have required. In our opinion proper accounting records have been kept by the foundation as far as appears from an examination of those records.
Crowe Horwath New Zealand Audit Partnership CHARTERED ACCOUNTANTS 12 March 2013
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 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 auditors’ report dated 12 March 2014 to confirm the information included in the audited financial statements presented on this website. Legislation in New Zealand governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath International, a Swiss verein. Each member 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 Union Infinity Foundation Limited Panasonic NZ Limited Lion Nathan Four Winds Grassroots Trust Matua Wines North and South Trust Limited Pelorus ACC adidas NZ Limited Angela Davies Anna Richards Aotearoa Safaris Argentinian Rugby Union ArtCom Design & Print Attitude TV Auckland Junior Rugby Auckland RFU Auckland Spinal Unit Augusto – Clare Fisher Augusto – Leon Kirkbeck Australian Rugby Union Barbarians Club – Auckland Bay of Plenty RFU Be Accessible Ben Marris BNZ – Volunteers “Closed for Good” Buddy Bid Buller RFU Cantabrians Rugby Football Club Canterbury RFU Carbine Club Care Group Limited Centurions – Wellington Chris Vincent CKS Thompson Framing Claymore Law
Corey Jane Counties Manukau RFU Crowe Horwath Dave Gibson Devon Funds Dick Frizzell East Coast RFU Eden Park Trust Board (events) Efficient Couriers Eric Roy Essentially Group Experience Group Gavin Rolton Gill Budden Grant Fox Harlequins – Hamilton Hawke’s Bay RFU Horowhenua Kapiti RFU House of Travel HOT Events Ian McIntosh Invacare J B Were John Miller Law King Country RFU Lauren Anderson / Claymore Law Manawatu RFU Marcus Woodhouse Massey Rugby Club Melodie Robinson Mid-Canterbury RFU Mike Copeland Murray Hansen Mizuno NZ New Zealand Spinal Trust Nicky Hobbs North Harbour RFU North Otago RFU Northland RFU Not For me Charitable Trust NZ Paralympics NZ Rugby Players Association
NZ Rugby World NZ Spinal Trust NZ WheelChair Rugby Otago RFU Phil Gifford Poverty Bay RFU Ricky Faint Rob Nichol Rocpac International Roger and Ruth Spooner Rowana Curren Sir Colin and Verna Lady Meads South African Rugby Union South Canterbury RFU Southland RFU Steve Luatua Takapuna Rugby Club 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 Tony Veitch Valerie Joy Smith Waikato RFU Wairarapa Bush RFU Waka Nathan Wanganui RFU Wellington RFU West Coast RFU Whatever It Takes
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MEMBERS LIST
John Alexander Gary Allen Peter Anson Andrew Archer Karen Archer Glenn Beattie S Beck Michael Beech Matthew Bellingham Richard Biddles Barry Boyden Bill Brian Barry Brown Stewart Browne Wally Buchanan Nigel Burton Charles Cato Matt Clark David Clarkson Chris Cole Sam Coleman Andrew Collett Fay & Frank Colthurst Brett Connolly Hilton Cook Terry Cope 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 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
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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 E.F Heath Robert Van Heiningen David Henry Higgins Contractors Limited Grant Hill Richard Hill Tracey Hill Nicky Hobbs Peter Hogg Lewis & Simon Holdworth Darryn Holyoake Jeremy Horrocks Sam Howard Elliot Hudson Andrew Hughes Phyllis Huitema Peter F Jalfon Mike Jarvis Kirsty Johnson Bruce Johnston David Johnston Monett Johnston Alan Jones Harvey Juran Lee Keegan Bruce Kenny Bevan Kidd John Knox Geoffrey Derrol Lamb Alan Lang Mike Leggett Andy Leslie Raymond Lincoln John Lockie Bryce Lott CJ 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 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 Tony Potter Philip Price Ann Pullar Peter Reid W.J Reilly Border Rugby Sports Club RFC East Coast Bays RFC Takapuna RFC Wasps Rugby Football Club 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 Thompson Andrew Timms Fleur-Maree Tisdale Stephen Titter Mike Tomlinson Lindsay Townsend Maurice Trapp Gardner Family Trust Kerry Verner Joe Walls Denny Warburton Tom Warren Watts & Huges Construction George Wheeler Peter White M L D Williams Norm Williams Don Wilson Allan Wolfe Murray Wright Richard Wyeth Brian Frederick Young Ian Young Paul Younger
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ArtCom Design & Print