TAURANGA CITY AQUATICS LIMITED by liaoqinmei

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									  TAURANGA CITY AQUATICS LIMITED

             FINANCIAL STATEMENTS
           FOR THE SIX MONTHS ENDED
               31 DECEMBER 2008


                            CONTENTS


Chairman’s Report                      2

Statement of Financial Performance     3

Statement of Movement in Equity        3

Statement of Financial Position        4

Notes to the Accounts                  5

Statement of Intent                    6




                                       TCC Ref: 2322420
CHAIRMAN’S REPORT

This is the six monthly report of the Directors of Tauranga City Aquatics Limited (TCAL) for
the first half of the financial year ending June 2009.

The principal purpose of the TCAL is to ensure we deliver on our Statement of Intent
performance measures to Council and the community. One of the key performance
measures is the management contract with LeisureCo (LCNZ). The Board constantly
monitor this to ensure efficient and effective performance of that contract.

There were no significant contractual events that were dealt by the Directors during the last
six months.

There are many other important deliverables under the Statement of Intent and we have
been working hard during the past six months to progress these as well. One of our key
strategic projects is the redevelopment of the Hot Pools. TCAL have now presented Council
with a financially sustainable proposal that will not only enhance the aquatics network, but
also Tauranga as a regional tourist attraction. We are pleased that this proposal is now
included in Council’s draft Ten Year Plan for further consultation.

Operations

The facilities were used by 518,643 (474,125 YTD 2007) patrons during the six months, an
increase of 9.6% over the same period in the previous year. Once again this is an
outstanding result. Together with LCNZ, we have a goal of 1,000,000 user visits for the 12
month period to 30 June 2009 and are on target to achieve this.

Financial Result

The unaudited results for the half year-ended 31st December 2008 disclose a net deficit for
the six months of $448,000 (surplus $95,000 YTD 2007). The deficit is in accord with the
expectations of the Directors for the six months. The second six months sees an increase in
the contract fees received from LCNZ. The operating grant from Council will be on budget at
year end and we are on target to achieving the budgeted year end surplus of $164,000,
before depreciation expense. Depreciation is budgeted and funded within Council.


On behalf of the Board, I would like to thank Tauranga City Council for their continued
support.




Warren Banks
Chairman of the Board




                                                                                       Page 2
                   STATEMENT OF FINANCIAL PERFORMANCE
                 FOR THE SIX MONTHS ENDED 31 DECEMBER 2008


                                         Note    2008/09     2007/08     2008/09
                                                Six mths    Six mths    Full year
                                                   Actual      Actual     Budget
                                                 ($000’s)    ($000’s)    ($000’s)
                                                                 (
  Revenue
  Grants                                  1          456         519          897
  Other Revenue                           2          445         548        1,084

  Total                                              901       1,067        1,981

  Expenditure
  Other Expenditure                       3          775         427        1,483
  Depreciation                            4          409         375            0
  Interest Paid                           5          165         169          334
  Total                                            1,349         971        1,817

  Surplus / (Deficit)                              (448)          95          164

  Taxation Expense                                     0           0             0

  Net Surplus / (Deficit) for the Year             (448)          95          164




                      STATEMENT OF MOVEMENT IN EQUITY
                 FOR THE SIX MONTHS ENDED 31 DECEMBER 2008


                                         Note    2008/09     2007/08     2008/09
                                                Six mths    Six mths    Full year
                                                   Actual      Actual     Budget
                                                 ($000’s)    ($000’s)    ($000’s)

Opening Balance                                   20,107      20,059             0

Net Surplus / (Deficit) for the Year               (448)          95         164

Total Recognised Revenues and Expenses            19,659      20,154         164

Capital Introduced                                     0            0            0

TOTAL EQUITY AS AT 31 DECEMBER 2008               19,659      20,154         164




                                                                        Page 3
                      STATEMENT OF FINANCIAL POSITION
                          AS AT 31 DECEMBER 2008


                                     Note     2008/09     2007/08     2008/09
                                             Six mths    Six mths    Full year
                                                Actual      Actual     Budget
                                              ($000’s)    ($000’s)    ($000’s)

Assets

Current Assets
Cash and Cash Equivalents              6           20         130
Trade and other Receivables                         0          64
Total Current Assets                               20         194

Non Current Assets
Property, plant and equipment                  25,430      25,156         718
Intangible Assets – Software                       19          11           0
Total Non Current Assets                       25,449      25,167         718

Total Assets                                   25,469      25,361         718

Liabilities

Current Liabilities
Accounts payable Accruals                         120          74
GST Payable                                       (19)          0
Total Current Liabilities                         101          74

Non Current Borrowings
Loan from Tauranga City Council                 1,699       1,123         554
LCNZ Security Bond                                 10          10
TECT RPS                                         4,000       4,000
Total Non Current Liabilities                    5,709       5,133         554

Total Liabilities                                5,810      20,154         554


Net Assets                                     19,659      20,154         164


Equity

Share Capital                                  18,861      17,000
Retained Earnings                                 778       3,154         164
Reserve – Schools in Pools                         20           0
Total Equity                                   19,659      20,154         164




                                                                     Page 4
                       NOTES TO THE FINANCIAL STATEMENTS


1)   GRANT REVENUE

                                                 2008/09     2007/08     2008/09
                                                Six mths    Six mths    Full year
                                                   Actual      Actual     Budget
                                                 ($000’s)    ($000’s)    ($000’s)

      Tauranga City Council - Operational            403         389         732
      Tauranga City Council - Renewals                53         130         164
                                                     456         519         897



2)   OTHER REVENUE

                                                 2008/09     2007/08     2008/09
                                                Six mths    Six mths    Full year
                                                   Actual      Actual     Budget
                                                 ($000’s)    ($000’s)    ($000’s)

      Lease Revenue                                   79          62         101
      Contract Revenue                               359         350         983
      Share of contract surplus                        7         136           0
                                                     445         548       1,084



3)   OTHER EXPENDITURE

                                                 2008/09     2007/08     2008/09
                                                Six mths    Six mths    Full year
                                                   Actual      Actual     Budget
                                                 ($000’s)    ($000’s)    ($000’s)

      Administration                                 138           82        205
      Consultants - General                           59           30         55
      Consultants - Resource Consents                  5           28          0
      Contract Payments                              252         364         531
      Operating Costs                                179         (96)        434
      Maintenance                                    142           19        258
                                                     775         427       1,483



4)   DEPRECIATION

                                                 2008/09     2007/08     2008/09
                                                Six mths    Six mths    Full year
                                                   Actual      Actual     Budget
                                                 ($000’s)    ($000’s)    ($000’s)

     Buildings and Improvements                      229         226
     Office Furniture and Equipment                   17          23
     Plant and Equipment                             158         124
     Software                                          5           2
                                                     409         375




                                                                        Page 5
5)   DEBT SERVICING


                                                               2008/09         2007/08        2008/09
                                                              Six mths        Six mths       Full year
                                                                 Actual          Actual        Budget
                                                               ($000’s)        ($000’s)       ($000’s)

      Interest                                                      50               56           107
      TECT RPS                                                     115              113           227
                                                                   165              169           334


6)   CASH AND CASH EQUIVALENTS

                                                               2008/09         2007/08        2008/09
                                                              Six mths        Six mths       Full year
                                                                 Actual          Actual        Budget
                                                               ($000’s)        ($000’s)       ($000’s)

      Cash                                                           20             130

                                                                     20               0

     Cash and cash equivalents include cash on hand, deposits held at call with banks, other
     short-term highly liquid investments with original maturities of three months or less, and bank
     overdrafts.




                                                                                             Page 6
9)      STATEMENT OF INTENT PERFORMANCE

        The company has complied with section 64 of the Local Government Act 2002 and has had the Statement of Intent formally adopted by Council for the
        six months ended 31 December 2008.

      Objectives for 2008/09       Performance Indicators                                              YTD Actual                          Year End Target

 1.   To implement year        1.1 TCAL will maintain the five year fixed operating      Net contract targets were exceeded        Meet operating budget under
      three of the five year       budgets with the selected aquatic facility            resulting in profit share of revenue      the contract.
      aquatic facilities           management contractor and ensure the annual           returned to TCAL.
      management                   budgets are met.
      contract and
                               1.2 TCAL will ensure the aquatic management               All reporting requirements met.           Monthly reporting from date
      consolidate all              contractor will meet all its obligations under the                                              of contract signing.
      financial, business          terms of the agreement.
      and management
      practices to ensure      1.3 TCAL, in association with its aquatic facility        Reporting processes in place that allow   Reporting on monthly,
      TCAL continues to            management contractor, will continue using            full monitoring as per contract           quarterly, half yearly, annual
      accurately monitor           reporting systems that compare monthly,               obligations.                              performance against target.
      our facilities,              quarterly, half yearly and annual financial offer
      programmes and               and usage levels with the actual financial and
      services.                    usage performance.

                               1.4 TCAL will continue to monitor the following           CERM surveys undertaken in February       Annual CERM Surveys.
                                   CERM Operational Management attributes as             2009.
                                   key performance indicators of facility
                                   programming and usage:

                                      Visits per centre;
                                      Programme range x programmable area;
                                      Catchment multiple (visits/year by catchment
                                       population;
                                      Program occupancy by weekly schedule of
                                       available time slots;
                                      Class occupancy by programme;
                                      User profile compared with demographic profile
                                       and priority users;
                                      User profile by priority community service
                                       obligation users.

 2.   In association with      2.1 The aquatic facility contractor will be required to   All marketing plans provided to TCAL.     Marketing Plans provided to
      Objectives for 2008/09       Performance Indicators                                             YTD Actual                         Year End Target
     the facility                  maintain a marketing and promotion plan and         Quarterly reporting includes monitoring   TCAL with regular reporting
     management                    TCAL will monitor the measurable components of      against these plans.                      against these plans.
     contractor, increase          the plan to ensure management is maximizing its
     awareness of TCAL             marketing spend. Key Performance Indicators for
     facilities,                   the marketing plan will include:
     programmes and
     services with an aim             Target markets and market share achieved
     of increasing the                 against projections;
     community’s physical             Marketing initiatives and sales/user response
     activity levels.                  against projections;
                                      Proposed marketing strategies compared to
                                       actual strategies completed.



3.   Continue the              3.1 TCAL will continue to commission annual safety      BWOF inspections undertaken               Annually.
     ongoing process to            audits and warrant of fitness inspections on all    independently. OSH audits as part of
     upgrade the TCAL              buildings under its control or ownership.           operational audits.
     facilities through
     implementation of         3.2 TCAL will implement the asset management            2008/09 AMP maintenance and               Annually.
     planned                       plans for each facility and negotiate with its      renewals works in progress.
     development and               shareholder appropriate budget allocations to
     asset management              meet cost of annual maintenance renewals and
     programmes.                   improvements.



                               3.3 TCAL will maintain a monthly maintenance            Contract Manager provides                 Monthly from contract
                                   works monitoring and reporting process to           documentation on monthly                  signing.
                                   ensure all planned and budget works are             maintenance.
                                   completed. To ensure long term maintenance
                                   data recording TCAL will ensure all works are       Confirm system in process of being
                                   listed on Tauranga City Council’s Confirm asset     updated.
                                   register.
     Objectives for 2008/09       Performance Indicators                                              YTD Actual                      Year End Target

4.   To complete twice        4.1 TCAL will continue to commission six monthly and      Independent operational audits to be   Six monthly.
     yearly operational           annual independent operational audits of its          conducted quarterly now to ensure
     audits on facilities         facilities and management contractor to ensure all    more detailed monitoring. First such
     and management of            facilities are operated within Pool Safe guidelines   audit completed December 2008.
     all TCAL facilities to       and meet all public health, safety and OSH
     maintain a Pool Safe         requirements.
     rating and contract
     tender compliance.       4.2 TCAL will continue to commission independent          Reviewed as part of independent        Ongoing.
                                  water testing at its facilities to ensure the New     operational audit.
                                  Zealand standard governing the safe
                                  maintenance of water quality (NZ 5826:2000 or
                                  any replacement standard) is met and
                                  maintained.


5.   To complete annual       5.1 TCAL will continue to commission Centre for           Surveys undertaken February 2009.      Annual surveys with overall
     CERM surveys of              Education and Recreation Management                   Results not yet provided.              satisfaction ratings of 75% or
     customers at                 (CERM) to undertake independent surveys at                                                   greater.
     Baywave TECT                 the facilities to monitor customer satisfaction
     Aquatic Leisure              and business performance to ensure all CERM
     Centre, Greerton             attributes meet a benchmark of 75% (or
     Aquatic & Leisure            greater) satisfaction rating.
     Centre and Mount
     Maunganui Hot Salt
     Water Pools as the
     main TCAL customer
     feedback systems
     that monitor
     customer satisfaction
     and inform
     management of
     actions required to
     exceed customer
     expectations.
     Objectives for 2008/09       Performance Indicators                                            YTD Actual                         Year End Target
                              5.2 TCAL will ensure there is an ongoing easy to       LeisureCo have a customer service         System in place on contract
                                  use customer service and complaints process        complaints system in place. All           signed.
                                  set up in association with an approved             complaints acted upon within agreed
                                  customer service charter and any customer          timelines and any significant issues
                                  complaint will be acted upon within five working   reported to TCAL.
                                  days of identification/lodgement.



6.   To achieve and or                                                               Targets exceeded at YTD resulting in      Measured at the end of year.
     exceed the third year                                                           profit share returned to TCAL.
     contract targeted use
     and financial
     performance of
     facilities,
     programmes and
     services.




7.   To seek ongoing          7.1 TCAL will ensure that a quality assurance plan     All plans in place. Reviewed quarterly.   Quality assurance plan in
     evaluation and               is put in place for each pool and monitored on a                                             place once contract signed.
     continuous                   monthly basis with any breech being acted
     improvement of               upon within five working days.
     TCAL facilities,
     programmes and           7.2 TCAL will ensure that each facility has a          2008/09 Business Plans adopted.           Annual business plan agreed
     services.                    business plan and that all agreed outcomes and                                               to by TCAL.
                                  targets are measured and met on a monthly,         2009/10 due March 2009.
                                  quarterly, half yearly and annual basis.




8.   To continually           8.1 TCAL will ensure that commercial value of                                                               100%
     investigate viable           shareholder’s investment is considered by the
     and suitable                 directors to equate to the shareholder’s funds
     business expansion           as disclosed in the balance sheet.
     and new business
 Objectives for 2008/09       Performance Indicators                                            YTD Actual              Year End Target
opportunities that are    8.2 TCAL will ensure that ratio of shareholder funds   Excluding depreciation, shareholders       100%
reflective of our             to total assets remains at 1 : 1.                  funds equate to assets. Depreciation
company values and                                                               is not funded within TCAL.
assist in meeting our
company short term
and long term
objectives.

								
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