ANAWATU
RANCH
XPLANATION TO
INTAGE
AR
ND OF
LUB OF
EAR
EW
EALAND
CCOUNTS Sarah Howell
Explanatory Note:
At the 2021 AGM queries were raised regarding the 2021 Financial Accounts. It was felt that the accounts are difficult to understand. It was moved that a Chartered Accountant look at them. These accounts were not approved by the AGM meeting. Brian Halcox and Sarah Howell met with Chartered Accountant Chloe Richardson of Bennett Currie, who couldn’t see anything obviously wrong with the accounts. She said that she couldn’t audit the accounts as only an auditor can perform this task. She suggested that the Branch approach Michael Smit to audit them. He had a look at the accounts and could only find one thing that needed to be fixed – viz that Manawatu Branch is not a registered charity and does not appear on the Charities Register as stated in the notes to the accounts. Michael felt that the format was correct for an Incorporated Society. He did quote for an audit but suggested that this would not solve the problem of members not understanding the accounts. He will not proceed with an audit unless directed so by the Branch Committee. Issues raised at the AGM are as follows: 1. The figure for R&M does not match the figure given in the breakdown of costs for the hall which was prepared separately by Sarah Howell (as Treasurer) 2. The depreciation is higher in 2021 than in 2020. It was felt that it should be lower. 3. The accounts are said in the notes to have been prepared on an accrual basis but appear to be a mixture of accrual and cash based. As caretaker Treasurer, in the following document, I will answer the above queries and move that the accounts be accepted. 1. R&M figures: As pointed out at the AGM, the treasurer splits R&M into those items which pertain to the hirage of the building and those items which are of a general matter. Previous Treasurer, Peter Robinson set up this system to enable the true costs of the hirage of the hall to be shown. Electricity is also split to show the base rate, when there are no hires, and the amount that is used when the hall is hired. These figures were produced at the AGM. Ask Away Accounting chose to include all of the R&M in one figure. The figure of $4971.15 shown in the accounts consists of: payment to Wright Page 9
