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YHA NEW ZEALAND ANNUAL REPORT

2015


GUESTS ENJOY THE VIEWS TO THE KAIKOURA MOUNTAIN RANGES FROM YHA KAIKOURA MAUI.


CONTENTS Executive Report / 4 Our Hostels / 7 Our Markets / 8 Our People / 9 Our Members / 10 Our Environment / 12 International / 13 Financials / 14 Notes to the Summary Financial Statements / 16 Auditors’ Report / 17 Governance Statement / 18 Acknowledgements & Directory / 19

ABOUT YHA NEW ZEALAND YHA New Zealand is a registered charitable organisation and an incorporated society which has been operating in New Zealand since 1932. It is membership based and part of Hostelling International (HI). Members receive reciprocal benefits internationally in the world’s first and largest budget accommodation network. To achieve its formal aims and objects, YHA New Zealand’s mission is: >> To deliver services to members which enrich their understanding of others and the environment by providing quality accommodation and travel experiences. In working to achieve its mission, YHA New Zealand is committed to: >> Operating in a sustainable manner; reflected in a triple bottom line commitment.

>> Living its values of integrity, respect, passion and excellence.

YHA’s mission is delivered through a hostel network which is comprised of its own and third-party operated (Franchise and Associate) hostels. YHA New Zealand is a triple bottom line organisation giving equal consideration to the organisation’s social, economic and environmental impact. The Annual Report is organised to support our triple bottom line commitment. Splendorgel is made from elemental chlorine free pulp sourced from well-managed forests and controlled sources. DNS is made from Elemental Chlorine Free sourced wood. Both are manufactured by an ISO 14001 certified mill.

Front cover: YHA Raglan

Back cover: YHA Bay of Islands The Rock Cruise

YHA NEW ZEALAND ANNUAL REPORT 2015

>> Developing and maintaining relationships with Māori which recognise their indigenous status in New Zealand.

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EXECUTIVE REPORT Once again, YHA New Zealand celebrates significant progress in its performance. We hosted more than 686,000 total guest nights across our hostel network (YHA-managed, Franchises and Associates), of which more than 80% were international guests. Much of our growth can be attributed to a favourable tourism trading environment characterised by increased visitor arrivals and a strong domestic economy. It also reflects the ongoing effectiveness of our strategies to achieve a sustainable business model. In particular, YHA has benefited from the continual review of our hostel network structure with a focus on balancing capital commitments and investment. Our key metrics results for the YHA-managed network ensured a satisfactory trading surplus of $230,000 before depreciation for the financial year, although the final result reflects the impacts of various property and other non-trading transactions. In line with the previous 12 month period, we made significant investments in maintaining our hostels, with expenditure up 55% on 2014 levels. It was particularly pleasing to see this reflected in both customer ratings and reviews as well as a hostel network that delivers a consistency of quality unrivalled in the New Zealand backpacker sector. An ongoing focus for the organisation is therefore to maintain a similar level of both operational and capital investment, particularly into our key strategic hostels, to meet the growing expectations of our guests.

MARKETS The New Zealand domestic market remains our single largest market, contributing 16% of our total bed revenue. We continue to target this market, particularly the groups and education segments, because it maintains our occupancy levels outside the peak summer season. All of our major international markets, including our traditional western markets, showed solid growth. Germany remains our largest international market ahead of the UK and Australia, while China continues to grow extraordinarily quickly and now comprises 7% of our bed revenue. We anticipate China will become one of our top three international markets in the next financial year. YHA is well positioned to accommodate these guests – our research clearly indicates our product and brand reputation has particular appeal to independently travelling Chinese. Our future marketing investment aims to balance the opportunities associated with our emerging markets, maintaining our traditional markets and growing the level of business derived from off season groups and the education sector.

NETWORK ADJUSTMENTS AND DEVELOPMENT Despite various changes to our hostel network, we have managed to sustain our brand representation through 45 hostels in 40 destinations across New Zealand while improving our financial sustainability and organisational performance. The acquisition and opening of YHA Christchurch in August 2014 was a major achievement, not only in the continuing recovery from the Christchurch earthquake, but also by adding a 5-star hostel in this location to our network. The hostel has traded positively and received equally positive customer feedback.

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Key metrics for the YHA-managed network demonstrate our achievements during the 2014-2015 financial year.

14%

11%

gross hostel bed revenue growth ($1.7m)

increase in guest nights (47,000 nights)

3%

10%

growth in membership

3%

growth in yield (average price per sold bed)

2

percentage points occupancy increase

YHA NEW ZEALAND ANNUAL REPORT 2015

growth in revenue earned per available unit (REVPAU)

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In line with the more strategic approach to our capital investment, our brand representation in Nelson is transferring to a Franchise partner, and we will move to a similar arrangement in Taupo upon expiry of the current lease. We have also established new third-party relationships in New Plymouth and Picton to maintain network coverage and quality. In the coming year we will progress a new hostel development in Tekapo, consider future capacity requirements in Christchurch, continue with significant capital refurbishment programmes in Queenstown and Auckland City, and seek to extend our hostel coverage through new third-party relationships in Mount Maunganui, Dunedin and Invercargill.

MEMBERSHIP AND GOVERNANCE The strategy to reduce the pricing of all membership categories has been successful with membership levels growing by more than 10% and approaching 27,000 in total. Domestic membership has increased by more than 2%. The percentage of international travellers who buy their membership as a commitment to staying in the YHA network during their stay grew to 43% of total members. As well as forming the basis for greater customer loyalty, our governance processes continue to be reliant on a participating membership. The National Board has given consideration to the challenges associated with the organisation’s future governance support needs, consulting with current participating members about future Annual General Meeting quorum requirements and electronic voting. Member feedback has been very useful in developing the Board’s views and shaping proposed rule changes which aim to further future proof the organisation.

INVESTING IN OUR FUTURE Maintaining fit-for-purpose business systems is critical to our business requirements. During the year, YHA invested in a new Information and Communication Technology (ICT) infrastructure to support its requirements over the next five year period. The upgrade process proved to be a well managed project designed to ensure reliable support for our business systems and make innovative use of technology to attract and delight our guests. The existing ICT infrastructure was last updated in 2008. We also continue to invest in our staff who go to great lengths to show extraordinary commitment in providing guests the best possible experience of YHA and New Zealand. Our annual climate survey confirms a very high rate of staff engagement in the organisation, which in turn reflects the investment we make in the development of a culture that includes, involves and informs its employees. To conclude, this review of the past 12 months marks an appropriate opportunity to celebrate our performance and achievements. In particular, we continue to progress towards a sustainable business model while maintaining our operational priorities and standards – an approach designed to ensure YHA’s leadership position in the backpacker accommodation sector. While the organisation will always evolve in response to commercial and competitive challenges, we remain committed to operate in a manner consistent with YHA’s long held values. We therefore anticipate a positive and long-term future in which YHA continues to be more than just a bed to its guests and more than just a job to its staff.

Mark Wells John Hammond Chief Executive National Chair

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YHA NEW PLYMOUTH, YHA PICTON, YHA CHRISTCHURCH AND YHA QUEENSTOWN LAKEFRONT.

OUR HOSTELS

HOSTEL DEVELOPMENT

THE HOSTEL NETWORK

Our continued commitment to upgrading hostel facilities to meet guests’ needs saw a record level of expenditure on our programmed maintenance schedule including:

Christchurch, we can once again provide our guests with a wide range of bed types in the Garden City. Associate partners YHA New Plymouth Sunflower Lodge and YHA Picton The Villa are welcome additions to our hostel network and ensure continued brand representation in these popular locations. As part of the ongoing implementation of the Hostel Network Development Plan we are selling YHA Nelson to a third-party Franchise partner who will continue to operate the hostel as part of the YHA New Zealand hostel network. The YHA hostel network now comprises 16 YHA-managed hostels, 26 Associate partner hostels and 3 Franchise hostels thus bringing the network to a total of 45 hostels.

OCCUPANCY Occupancy levels continued to be buoyant across the network with YHA-managed hostel occupancy increasing to 73%. Top performing hostels recorded a yearly occupancy in excess of 80%:

• YHA Lake Tekapo (96%) • YHA Auckland International (95%) • YHA Christchurch Rolleston House (93%) • YHA Queenstown Central (87%) • YHA Auckland City (84%) Bed yield continued to improve with an average increase of 2.5%.

• Modernisation of twelve accommodation rooms comprising nearly 70% of YHA Queenstown Lakefront inventory. This was stage one of a three stage refurbishment project.

• Exterior painting of YHA Wellington. The commencement of major YHA Auckland City refurbishment has been postponed until May 2016.

QUALITY Overall guest expectations have been met or exceeded for 94% of our guests this year, a slight increase from the previous year. To continue this positive outcome we are committed to an ambitious hostel maintenance schedule for 2015 and 2016. YHA remains committed to Hostelling International’s quality management system, HI-Q. To ensure ongoing quality management processes and standards in YHA-managed hostels, the following properties were audited to the highest HI-Q Level 2: YHAs Auckland International, Auckland City, Rotorua, Wellington, Franz Josef, Queenstown Central, Queenstown Lakefront and National Office.

LOOKING FORWARD Further implementation of the Hostel Network Development Plan will see YHA terminate the lease of our current YHA Taupo in late 2015 and seek a Franchise partner at an alternate Taupo hostel. Development projects for the year include:

• Capital expenditure programme to progressively upgrade hostel facilities.

Overall guest expectations have been met or exceeded for 94% of our guests this year.

• Major refurbishments in YHAs Auckland International, Auckland City, Queenstown Central and Queenstown Lakefront.

• Installation of a geothermal down-bore system at YHA Rotorua.

• Roof replacement at YHA Wellington.

YHA NEW ZEALAND ANNUAL REPORT 2015

Opening YHA Christchurch was the undoubted highlight of the year. With the addition of the 121 bed hostel in central

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OUR MARKETS This year has seen solid growth from all our key markets with China continuing to lead the way. The encouraging aspect of this growth is the continued recovery out of the UK, USA, Europe and Australia. This solid and broad base of international guests has benefits not only in balancing risk but also in offering a positive mix of different cultures using our hostel network. YHA’s digital profile remains strong with internet searches for the YHA brand continuing to grow. Our website www.yha.co.nz revenue grew a further 28% on the previous year and we continue to develop our social media profile in both western and Chinese social media platforms. The share of direct sales revenue is under increasing pressure from giant online travel agencies that charge commission on sales. YHA works hard to balance our digital activity to maximise our direct sales without limiting the global profile these important third-party channels provide. Domestically, our focus has been on growing the New Zealand independent traveller market. We increased our advertising activity in mainstream press media as well as introduced a television campaign in June 2015. Domestic guest nights grew by 7% on the previous year. Groups business continues to grow but at a slower pace than anticipated. New groups business initiatives are planned for the coming year to build on the solid platform gained in the last two years. YHA New Zealand continues to work closely with YHA Australia to build profile among the international school groups travel trade. YHA Australia and YHA New Zealand continue to invest in the high quality digital magazine, Backpacker Essentials, and look toward other joint marketing initiatives to attract long-haul visitors to Australasia.

< A YHA TELEVISION CAMPAIGN HIGHLIGHTED FAMILY STAYS; THE CHINA MARKET CONTINUES TO GROW; NEW GROUPS BUSINESS INITIATIVES ARE UNDERWAY; A MAJOR FOCUS HAS BEEN TO GROW THE DOMESTIC MARKET.

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OUR PEOPLE A SNAPSHOT OF OUR PEOPLE AS AT 30 JUNE 2015 LOCATION & EMPLOYMENT AGREEMENT TYPE

HEAD COUNT AND FULL TIME EQUIVALENTS (FTE)

GENDER BREAKDOWN

Headcount Hostels: 86% (155 staff) National Office: 14% (24 staff) Total: 179 staff

Permanent Hostels: 81% (96 staff) National Office: 19% (22 staff) Total: 118 staff

Female: 61% (110 staff) Male: 39% (69 staff)

PERMANENT STAFF TURNOVER FTE Hostels: 84% (98 staff) National Office: 16% (18 staff) Total: 116 staff

73% of staff remain 27% left (48 staff) > Hostels: 47 staff > National Office: 1 staff

STAFF COMPOSITION

LONG SERVICE

We employed a total of 179 people as at 30 June 2015. This is

We thank and congratulate team members who reached a

three more than the 176 people at the same time last year.

significant milestone during the year. Each has made a significant

Full time equivalents increased slightly during this time from

contribution to YHA.

110 to 116. We worked a total of 274,464 hours during the year. Permanent staff turnover decreased from 32% last year to 27% this year. Our staff are 39% male and 61% female, 86% of whom work

15 years:

Suzy Thyne

10 years:

Nikki Bartlett, Rangi Bernecker, Simon Cartwright, Lisa Gebbels, Toshi Harada, Karen Paice, Derek Teariki, Savana Verwey, Mark Wells

5 years:

Paula Collinson, Rachel Honore, Joshua Keeble, Billy Kerr, Sandra Meek, Rod Stokes

in hostels. The 24 different nationalities represented reflect the international nature of our business. New Zealanders comprise 48% of staff with the next three nationalities being British (15%), Japanese (6%) and Indian (5%).

EMPLOYEE ENGAGEMENT

HEALTH AND WELLBEING

Our 2015 climate survey showed an increase in staff engagement

As part of its commitment to staff wellbeing YHA reports the

which has been the trend over the last four years. The ‘person I

average sick leave days per staff member. Sick leave this year

report to’ section remains our strongest performing area whilst

was 2.6 days on average per person, which is a slight decrease

‘reward and recognition’ continues to be the lowest rated area.

from last year and is considered low.

We benchmarked against YHA Ltd (Australia) for the third year.

YHA promotes a culture which supports a safe and healthy

Two years ago we implemented an Organisation Development

accommodation experience for guests as well as a safe and

Plan in consultation with staff. The plan sets objectives and tracks

healthy workplace for staff. One health and safety measure is

progress in the following areas: learning and development, pay

the number of work-related lost time injuries reported for the

and recognition, communication, leadership, environmental

year. This year there were six lost time injuries, so our formal

sustainability and technology. Our goal is to maintain YHA as the

Lost Time Injury Frequency Rate measure (number of lost time

employer of choice in the backpacker sector and support a future

injuries for every million hours worked) is 21.9. This is an increase

where staff feel valued and engaged.

from last year.

What is the one thing more than anything else that makes YHA a great place to work?

>> YHA is a big family. Everyone is so friendly and welcoming and is always happy to help. It’s just a really great place to work. >> Team culture - the team environment is great and I enjoy coming to work every day. >> Outstanding work environment with great values.

YHA NEW ZEALAND ANNUAL REPORT 2015

Fixed Term/Casual Hostels: 97% (59 staff) National Office: 3% (2 staff) Total: 61 staff

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FREDERIK, BRAM (NETHERLANDS) AND FELIX (GERMANY) AT YHA BAY OF ISLANDS PAIHIA; AMANDA GOWER AND DAVID BERRY RECEIVE THEIR HONORARY LIFE MEMBERSHIPS; IN JANUARY 2015 YHA INTRODUCED THE YHA & IYTC MEMBERSHIP CARD; TRAVELLERS ENJOY THE SELFIE VIEWS OVER WELLINGTON; SCOTT PARTRIDGE RECEIVED THE 2014 CORA WILDING MEMORIAL AWARD.

OUR MEMBERS YHA’s international and domestic memberships have both grown significantly for the first time in several years. The membership price realignment as of July 2014, and the continued strength of the 10% discount on accommodation, contributed to this growth. Additionally, YHA partnered with STA Travel to create a new membership card also known as the YHA and International Youth Travel Card (IYTC). In addition to standard YHA membership benefits, this membership card offers significant discounts on STA travel and many other associated products and services. It is available to 18–30 year olds and aligns YHA with STA and the international youth travel market.

MEMBERS - YEAR TO 30 JUNE

YHA’s international and domestic memberships have both grown significantly for the first time in several years.

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2012

International 7,380

Domestic 15,978

2013

International 9,824

Domestic 15,170

2014

International 9,452

Domestic 14,984

2015

International 11,804

Domestic 15,129

MEMBER WEEKENDS Two member weekends were held in Wellington (incorporating the AGM) and Tekapo. These successful events provide a social weekend away with other members from around New Zealand and the opportunity to meet and discuss current topics with YHA’s National Board and senior staff.


AWARDS

Amanda Gower

At the 2014 AGM held in Wellington the following Awards were presented:

Amanda Gower joined YHA in 1991 to travel to the UK and

Honorary Life Membership Award: David Berry and Amanda Gower

joined the Rotorua Branch when she returned. Amanda has been active since, assisting with fundraising projects, activities, trips and catering, including the national AGMs’ Welcome Afternoon Tea. She has also organised the Branch’s annual Keep New Zealand Beautiful Week Clean-Up Day, liaising with staff from YHA

Honorary Life Memberships David Berry

Rotorua. Amanda’s enthusiasm has ensured the Branch has grown

David Berry joined YHA in 1971 when he became involved in the re-formation of the South Canterbury Branch in Timaru. During this time David became fully involved in the Region 4 Council, serving as Chair for a number of years where he took every opportunity to promote YHA.

Since 1991, Amanda’s roles have included: Rotorua Branch

Throughout the years David has demonstrated his strong loyalty to YHA through continued participation, taking on many roles that include: representing the Timaru and Oamaru Branches at some national AGMs; regionally-elected member of YHA’s National Executive from 1986-1991; Chair of Region 4 Council until 2008; Certificate of Merit awardee in 1991; and Honorary Vice-President from 2008–2013.

and continues to be active and social.

Secretary; Rotorua Branch Chair (a position she still holds); Region 2 Council Chair; Awards Committee member; and Honorary Vice-President since 2009.

Cora Wilding Memorial Award Scott Partridge Scott Partridge received $1,000 toward attending the 10-day Spirit of Adventure Tour sailing from Opua, Bay of Islands in January 2015. During the voyage Scott and a team of 40 faced the challenges of learning how to sail the ship unaided to its final anchorage in Auckland. During the voyage, Scott learned navigation and sailing skills, knot tying and that he could push himself to his limits. Scott said, “I would really like to thank the Cora Wilding Memorial Award Trustees for their belief in me and their generous sponsorship that enabled me to undertake this voyage.” >> Scott’s full report can be found on www.yha.co.nz.

YHA NEW ZEALAND ANNUAL REPORT 2015

Distinguished Service Award: Nola Daniel, Audrey Jones and Christine Kiddey

Europe. She was so impressed with YHA hostels overseas she

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CELEBRATING 10 YEARS OF THE GREEN FOOTRPRINT PROJECT AT COES FORD, CANTERBURY.

OUR ENVIRONMENT YHA is committed to environmental sustainability and helping protect and preserve New Zealand’s beautiful backyard. In addition to taking steps across hostels to reduce waste, emissions, energy, water usage and working alongside local communities, YHA was invited to take part in Hostelling International’s pilot quality and sustainability management programme, HI-Q and Sustainability.

QUALMARK ENVIRO ACCREDITATION YHA remains committed to the Qualmark Enviro accreditation system. All YHA-managed hostels retained their accreditation. YHA Christchurch received its first since becoming part of the network.

Enviro Gold

The programme was trialled at YHA Wellington and achieved a team score of 100% as well as sustainability accreditation. YHA Wellington is the first property in the world to achieve a 100% score. HI-Q and Sustainability will next roll out to all of YHA’s Level 2 HI-Q accredited properties: YHAs Auckland City, Auckland International, Rotorua, Franz Josef, Queenstown Central and Queenstown Lakefront.

GREEN FOOTPRINT PROJECT

YHA Queenstown Central YHA Queenstown Lakefront YHA Te Anau YHA Wanaka YHA Wellington

Enviro Silver

YHA Christchurch Rolleston House YHA Franz Josef YHA Lake Tekapo YHA Nelson YHA Opoutere YHA Rotorua

FUTURE INITIATIVES

YHA Franz Josef has been identified as a potential site for solar installation to generate electricity and reduce electricity costs. This is in part because West Coast electricity costs per kWh are among the highest across the YHA network.

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YHA Auckland City YHA Auckland International

The Green Footprint Project celebrated 10 years in September 2014. This project is an ongoing collaboration between YHA New Zealand, Selwyn District Council, Waihora Ellesmere Trust and the local Selwyn District Enviro schools. To mark the celebration members of each organisation, including the Selwyn District Mayor, planted 10 native specimen trees at Coes Ford where the first planting took place in 2005.

YHA Rotorua has resource consent to install a geothermal downbore heat exchanger that will tap into this natural resource to heat guest hot water. YHA Rotorua emits 22% of YHA New Zealand’s total carbon emission from electricity and gas. The down-bore heat exchanger will reduce these emissions by 18 tonnes per year.

YHA Mt Cook

YHA Taupo

Enviro Bronze

YHA Christchurch YHA Kaikoura


INTERNATIONAL YHA New Zealand is an active member of Hostelling International (HI), the trading name of the International Youth Hostelling Federation (IYHF). This membership is strategically important for YHA New Zealand and achieves a key competitive advantage. We continue to foster our international presence and relationships through the following: >> Clive Croy’s role as HI Treasurer Clive served as HI Treasurer for a two-year term through to the 2014 HI Conference. >> World Youth Student Travel Conference (WYSTC) in Ireland, September 2014 This conference was attended by Travel Services Manager, Isabelle Gremminger. >> HI CEOs Meeting in Spain, February 2015 Chief Executive, Mark Wells, represented YHA New Zealand at this meeting which is the key annual business meeting for the HI network. >> HI General Participation YHA New Zealand continues to participate generally with HI, responding positively to consultation opportunities. Chief Executive, Mark Wells, participated in the HI in 3 Task Group while Brian Westwood, Manager, Marketing and Sales, participated in the Digital Marketing Forum. >> YHA Australia Relationship YHA New Zealand continues to work closely with YHA Australia in support of the Statement of Intent Agreement which commits both Associations to a collaborative partnership. This includes participation in each country’s key meetings. >> YHA China Memorandum of Understanding YHA New Zealand hosted two senior staff from YHA China at the 2014 Annual Network Conference. YHA China CEO, Yin Chen, and Quindao Hostel Manager, Wang Jue, attended in support of the Memorandum of Understanding between YHA New Zealand and YHA China.

> INTERNATIONAL TRAVELLERS ENJOY THE BAY OF ISLANDS,

CHRISTCHURCH, ABEL TASMAN NATIONAL PARK AND FIORDLAND NATIONAL PARK.

YHA NEW ZEALAND ANNUAL REPORT 2015

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FINANCIALS YOUTH HOSTELS ASSOCIATION OF NEW ZEALAND INC. SUMMARY STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 2015 $ 000s

2014 $ 000s

GROSS INCOME

15,256

15,144

TOTAL EXPENDITURE

15,136

13,888

120

1,256

26

40

Interest Paid - Finance & Interest Costs

(762)

(808)

(Deficit)/Surplus after Financing Costs

(616)

488

593

3

Net Surplus before Financing Costs Interest Received

Gain on Sale of Assets Costs associated with Property Restructures

(214)

0

0

1,381

NET (DEFICIT)/SURPLUS FOR THE YEAR

(237)

1,872

Revaluation of Land & Buildings

(287)

597

TOTAL COMPREHENSIVE (DEFICIT) INCOME FOR THE YEAR

(524)

2,469

Net insurance settlement

SUMMARY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015

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2015 $ 000s

2014 $ 000s

Total Comprehensive Income for the Year (Deficit)

(524)

2,469

Net Movement in Equity for the Year

(524)

2,469

Equity at Start of the Year

31,598

29,129

TOTAL EQUITY AT END OF THE YEAR

31,074

31,598


SUMMARY STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 2015 $ 000s

2014 $ 000s

Accumulated Funds

21,821

20,752

Revaluation Reserves

9,033

10,626

220

220

31,074

31,598

FUNDS OF THE ASSOCIATION

Stewart Island Hostel Building Fund TOTAL ASSOCIATION FUNDS These were represented by: ASSETS Current Assets

710

831

Mortgage Investment

240

300

2,600

1,908

Assets Classified as Held for Sale Investment Property Property & Plant Equipment

3,364

3,364

29,680

31,888

Long-Term Lease paid in advance

2,086

338

Intangible Assets

5,643

5,906

44,323

44,535

TOTAL ASSETS LESS LIABILITIES Current Liabilities

2,814

2,609

Term Liabilities

10,435

10,328

TOTAL LIABILITIES

13,249

12,937

NET ASSETS PER THE ASSOCIATION’S FUNDS

31,074

31,598

2015 $ 000s

2014 $ 000s

1,496

5,943

NET CASHFLOWS FROM INVESTING ACTIVITIES

(1,000)

(2,070)

NET CASHFLOWS FROM FINANCING ACTIVITIES

(593)

(3,222)

NET INCREASE / (DECREASE) IN CASH

(97)

651

Add Opening Cash Balance

428

(223)

CLOSING CASH AND BANK BALANCES

331

428

On Behalf of the National Board

John Hammond — National Chair

Kevin Brewer — Convenor, Audit & Risk Committee

REPRESENTED BY: Cash at Bank and on Hand

331

428

331

428

YHA NEW ZEALAND ANNUAL REPORT 2015

NET CASHFLOWS FROM OPERATING ACTIVITIES

FINANCIALS

SUMMARY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

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NOTES TO THE SUMMARY FINANCIAL STATEMENTS For the year ended 30 June 2015 These are the Summary Financial Statements of the Youth Hostels

There have been no events subsequent to balance date which

Association of New Zealand Incorporated (YHA New Zealand) for

materially affect the result for the year, or impacted on trading as a

the year ending 30 June 2015.

going concern. Post balance date the Nelson property has been sold

The specific disclosures included in these summary financial statements have been extracted from the full annual financial statements authorised for issue on 22 August 2015. The full annual financial statements have been prepared in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS).

and the Arthurâ&#x20AC;&#x2122;s Pass property is under contract. These properties are shown in the financial statements as assets held for sale.

Specific accounting policies All specific accounting policies have been applied on the same basis as those used in the full financial statements of YHA New Zealand.

These summary financial statements do not include all the disclosures provided in the full financial statements and cannot be

Changes in accounting policies

expected to provide as complete an understanding as provided by

There have been no changes to Accounting Policies during the

the full financial statements.

year ended 30 June 2015.

An unqualified audit opinion has been received on the full

The Minister of Commerce has approved a new Accounting

financial statements for the year ended 30 June 2015. A copy of

Standards Framework developed by the External Reporting

the full YHA New Zealand financial statements for the year ended

Board (XRB). Under this Accounting Standards Framework,

30 June 2015 may be obtained by phoning YHA New Zealand on

YHA New Zealand is classified as a public benefit entity and it is

(03) 379 9970, or by emailing national.secretary@yha.co.nz.

expected that it will be required to apply the new PBE Standards

These summary financial statements have been examined by our auditors for consistency with the full financial statements.

as applicable for private not-for-profit entities. These standards are being developed by the XRB based on current International Public Sector Accounting Standards (IPSAS). The effective date for

An unqualified audit opinion has been received. These summary

the new standards for private not-for-profit entities is expected

financial statements were approved for issue by the National

to be for reporting periods beginning on or after 1 April 2015.

Board on 22 August 2015.

This means YHA New Zealand expects to transition to the new standards in preparing its 30 June 2016 financial statements. As

Basis of preparation

the PBE Standards as applicable for private not-for-profit entities

YHA New Zealand is a public benefit entity, incorporated under the

are still under development, YHA New Zealand is unable to assess

Incorporated Societies Act 1908; and is registered as a charitable entity under the Charities Act 2005. These are the summary financial statements of YHA New Zealand and they comply with FRS43: Summary Financial Statements. The presentation currency is New Zealand dollars, rounded to the nearest thousand dollars.

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the implications of the new Accounting Standards Framework at this time. Due to the change in the Accounting Standards Framework for public benefit entities, the XRB has effectively frozen the financial reporting requirements for public benefit entities up until the new Accounting Standard Framework is effective. Therefore all new NZ IFRS and amendments to existing NZ IFRS issued after 1 June

The full financial statements, upon which these Summary Financial

2011 will not be applicable to public benefit entities. Accordingly,

Statements are based, have been prepared to comply with the NZ

no disclosure has been made about new or amended NZ IFRS

GAAP and the Financial Reporting Act 1993.

that exclude public benefit entities from their scope.


AUDITORS’ REPORT

Report of the Independent Auditors on the Summary Financial Statements to the members of Youth Hostels Association of New Zealand Inc.

The accompanying summary financial statements, on pages 14 to 16 which comprise the summary statement of financial position as at 30 June 2015, the summary statement of comprehensive income, the summary statement of changes in equity and the summary cash flow statement for the year then ended, and related notes, are derived from the audited financial statements of Youth Hostels Association of New Zealand Inc. for the year ended 30 June 2015. The summary financial statements do not contain all the disclosures required for full financial statements under generally accepted accounting practice in New Zealand. Reading the summary financial statements, therefore, is not a substitute for reading the audited financial statements of Youth Hostels Association of New Zealand Inc. Our audit of the financial statements for the year ended 30 June 2015 was completed on 22 August 2015 and our unmodified opinion was issued on that date. We have not undertaken any additional audit procedures in relation to those financial statements from the date of the completion of our audit and those financial statements and the summary financial statements do not reflect the effects of events that occurred subsequent to the date of our report on those financial statements. This report is made solely to the Association’s members, as a body. Our work has been undertaken so that we might state those matters we are required to state to them in a report from the auditor and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company’s shareholders, as a body, for this report, or for the opinions we have formed. In addition, we take no responsibility for, nor do we report on, any part of the annual report not specifically mentioned in our report. Directors’ Responsibility for the Summary Financial Statements The Directors are responsible for the preparation of the summary financial statements in accordance with FRS-43: Summary Financial Statements (“FRS 43”). Auditors’ Responsibility Our responsibility is to express an opinion on the summary financial statements based on our procedures, which were conducted in accordance with International Standard on Auditing (New Zealand) 810: Engagements to Report on Summary Financial Statements.

Restriction on Use of our Report This report has been prepared for inclusion in the annual report. We disclaim any responsibility for reliance on this report or the amounts included in the summary financial statements, for any purpose other than that for which they were prepared.

Chartered Accountants 24 August 2015

Christchurch

PricewaterhouseCoopers, 5 Sir Gil Simpson Drive, Canterbury Technology Park, PO Box 13 244, Christchurch 8053, New Zealand; T: +64 (3) 374 3000, F: +64 (3) 374 3001, www.pwc.com/nz

YHA NEW ZEALAND ANNUAL REPORT 2015

Opinion In our opinion, the summary financial statements on pages 14 to 16 derived from the audited financial statements of Youth Hostels Association of New Zealand Inc. for the year ended 30 June 2015 are consistent, in all material respects, with those audited financial statements, in accordance with FRS-43.

FINANCIALS

Other than in our capacity as auditors we have no relationships with, or interests in, Youth Hostels Association of New Zealand Inc.

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GOVERNANCE STATEMENT The Youth Hostels Association of New Zealand is a registered charitable organisation and an incorporated society, the governance of which is vested in a National Board elected by YHA New Zealand members.

Awards Committee – comprising the Chair and the elected Honorary Vice-Presidents; responsible for receiving and confirming nominations for service and merit awards and for determining the annual Cora Wilding Memorial Award.

National Board

Member participation

YHA New Zealand relies upon the vision and business expertise of its Board, which consists of six elected senior financial members and up to two co-opted members. The Board’s role is to act in the best interests of YHA in order to ensure its long term sustainability by setting and monitoring strategic direction and performance.

All senior financial members are, upon eight or more weeks’ current membership, entitled to vote in all YHA elections and vote on constitutional notices of motion.

In practice, the Board achieves this through a close working relationship with the Chief Executive who is charged with the day to day leadership and management of YHA. The Board meets at least six times each year.

Register of interests The Board maintains an up to date register of interests which is available for inspection by all Board members, the Chief Executive and Auditors.

Board committees The Board has three standing committees: Remuneration Committee – comprising two Board members and the Chair; responsible for recruiting the Chief Executive and thereafter for all aspects of the Chief Executive’s employment, including developing annual key performance indicators and remuneration. In addition, the Remuneration Committee signs off on the appointment of senior staff and their remuneration. Audit and Risk Committee – comprising three Board members, one of whom is elected as Convenor; responsible for reviewing the financial reporting process, the effectiveness of management information systems and systems of internal control, and the audit process. The Committee is also responsible for ensuring that a risk management strategy is in place which identifies and mitigates risks to YHA.

> MICHAEL SHEEHAN, DARREN BURDEN, BARRY COPE, JOHN HAMMOND (NATIONAL CHAIR), RAY SALTER, STEVE WAKEFIELD, MARK WELLS (CHIEF EXECUTIVE), KEVIN BREWER.

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Members are also encouraged to attend and take part in the AGM in order to gain insight and contribute to YHA’s performance.

Member consultation During the year the Chief Executive travelled to meet with the following Branches and Member Groups to discuss proposed changes to YHA’s governance structure: Auckland, Canterbury, Hamilton, Rotorua and Whangarei.

Branches and Member Groups YHA Branches were originally formed by groups of like-minded members who often volunteered their time to support hostels and their activities. Many members of today’s Branch or Member Groups were involved with YHA when it was purely volunteer based and provide a valuable link to our history. Branch committees are responsible for coordinating member activities within the branch and electing a representative to attend YHA’s AGM. Member Groups are an alternative way for members to come together for social and/or travel activities without the formalities of a branch structure.

Registered Office YHA New Zealand’s registered office is in Christchurch.


ACKNOWLEDGEMENTS Bequests Three bequests were gratefully received during the year. Phyllis Newell Estate The Eric Gordon Harvey Trust JB Eagle Estate

$10,553 $6,135 $6,000

Acknowledgement of donations YHA is very grateful for the following donations of $100 or more. Canterbury YHA Member Group $400 Peggy Jack $100

DIRECTORY Patron

2012

Harry Guitry

Senior Leadership Team

His Excellency Lieutenant General The Right Honourable Sir Jerry Mateparae, GNZM, QSO, Governor-General of New Zealand.

Rex Smart

Kevin Cameron

2013

Bruce Ward

Simon Cartwright

2014

David Berry

Maureen McCloy

Amanda Gower

Mark Wells

Gordon Solloway

1968

Jim McKie

1978

Jean Nelson

1982

Peggy Jack (nee Lawless)

Donald Paterson

1986

Rodney Metcalfe

1989

Gwyn Rogers

Ruth Wildish

1990 Roy Pyle 1996

Peter Bugler

2001 Bill Morris

Brian Westwood

Coral Laughton (National Chair)*

Bank

John Hammond (National Chair)**

Bank of New Zealand

Kevin Brewer (Convenor, Audit and Risk Committee)

Auditors

Darren Burden***

PricewaterhouseCoopers

Barry Cope

Solicitors

Ray Salter (Deputy Chair)

Young Hunter

Michael Sheehan

Rhodes & Co

Steve Wakefield

Charities Commission Registration Number CC37649

*Resigned from the Board December 2014. **Effective December 2014. ***Co-opted September 2014.

Malcolm Wade

2006 Margaret Abbott

Honorary Vice-Presidents

Mike Northmore

Hamish Allardice

Gilbert Whalley

Elizabeth Beer

YHA Member Groups Geriatrix Cycle Touring Group Hawke’s Bay – Friends of YHA Canterbury

2007 Bruce Bertram

Amanda Gower

YHA Member Branches

Harry Guitry

Auckland

Moira Lipyeat

2008 Elizabeth Beer

Chief Executive

2010 Charlie Smith

Mark Wells

2011

Ross Butler

Lance Kiddey

Ben Mitchell

John Wilson

Hamilton Rotorua Whangarei

FINANCIALS

1967

National Board

YHA NEW ZEALAND ANNUAL REPORT 2015

Honorary Life Members

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Youth Hostels Association of New Zealand Inc. 1st Floor, Moorhouse City, 166 Moorhouse Avenue, PO Box 436, Christchurch 8140, New Zealand ph: +64 (0) 3 379 9970 | fax: +64 (0) 3 365 4476 www.yha.co.nz

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2015 YHA New Zealand Annual Report  

The YHA New Zealand 2015 Annual Report records and celebrates our achievements, while also considering future challenges and opportunities....

2015 YHA New Zealand Annual Report  

The YHA New Zealand 2015 Annual Report records and celebrates our achievements, while also considering future challenges and opportunities....

Profile for yhanz
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