NEW ZEALAND INSTITUTE OF LANDSCAPE ARCHITECTS ANNUAL FINANCIAL REPORT AND TREASURER S REPORT

Transcription

1 FINAL NEW ZEALAND INSTITUTE OF LANDSCAPE ARCHITECTS ANNUAL FINANCIAL REPORT AND TREASURER S REPORT 2009 (2010 AGM) 5.19 Annual Report 2009 Presented at 2010 AGM 1 FINAL

2 CONTENTS 1. Annual Report Financial Statements prepared by Isle & Campbell Ltd 2 Treasurers Report Investments Term Deposit Ready Access 2.2 Operational Account Analysis Summary Comparison Budget vs Actual Subscription Chart 2009 Subscription in Arrears Conference 2.4 Awards Account 2.5 Summary of NZILA Position 2.6 Co-Signatories 2.7 Recommendation and Motion 3 Presentation of the Operational Budget for Explanation 3.2 Proposed Income Table ( comparisons) 3.3 Proposed Expenditure Table ( comparisons) 3.4 Subscription Table Recommendation and Motion 4 Special Projects Endorsement 5 Treasurer Strategy for Appointment of Accountant and Auditor Recommendation and Motion 7 Appendix 1 Auditors Report for 2009 NZILA Representation Letter to Auditor 5.19 Annual Report 2009 Presented at 2010 AGM 2 FINAL

3 NEW ZEALAND INSTITUTE OF LANDSCAPE ARCHITECTS (1). ANNUAL FINANCIAL REPORT 2009 Prepared by Iles & Campbell Limited The Annual Report prepared by Iles & Campbell is attached Annual Report 2009 Presented at 2010 AGM 3 FINAL

4 New Zealand Institute of Landscape Architects Inc. Financial Statements For the Year Ended 31st December 2009 Contents Statement of Financial Performance Statement of Movements in Equity Statement of Financial Position Schedule of Fixed Assets and Depreciation Notes to the Accounts Audit Report

5 New Zealand Institute of Landscape Architects Inc. Statement of Financial Performance For the Year Ended 31st December 2009 Note Conference and Awards Account Registrations Fees / Exhibitor Income 34,535 58,092 Interest Received Sponsorship 11,000 38,000 Sundry Income - 10,115 45, ,286 Less Expenses Management 4,800 36,470 Administration Catering 7,458 3,280 Venue 11,106 - Speakers Accommodation & Travel Costs 931 2,758 Advertising & Promotion Bank Fees 3 9 Exhibitions/Displays 609 1,200 Participant Kits Donations 3,639 - Distribution of Conference Profit 5,459 - Printing & Stationery 1,231 1,524 Media - 2,385 Catering - 1,813 Printing & Certificates - 3,358 Judges Expenses - 2,244 General Expenses - 3 Ceremony Expenses - 20,215 Air Fares - 6,222 Administration - 5,760 Website Management ,788 87,740 Surplus (Deficit) 8,792 18,545 This Statement must be read in conjunction with the accompanying Notes to the Accounts and the Audit Report.

6 INCOME New Zealand Institute of Landscape Architects Inc. Statement of Financial Performance For the Year Ended 31st December 2009 Note Subscriptions 152, ,539 Interest - Cheque Account Interest - Term Deposit & Ready Access 7,875 10,704 Interest - Inland Revenue Department 2 5 Associateship Application Fees 2,253 - Sundry 516 8, , ,494 EXPENDITURE Construction Industry Council Branch Levies 8,682 8,283 Secretarial Expenses 46,428 33,862 Executive Travel & Meeting Expenses 23,111 16,018 Associateship Expenses 5,745 1,979 Associateship Review 31,738 8,566 IFLA Travel 9,536 4,848 IFLA Fees & Awards 2,684 4,360 President's Honorarium 5,000 5,000 President's Extraordinary Expenses 1, Awards 1,200 1,200 Landscape NZ 10,000 7,778 InSite Publication 2,718 2,300 Sponsorship & Donations 6,800 5,796 Registration Marketing Documents 7,974 - Graduate/Student Affairs - 1,153 Promotion 2,058 1,690 Website Computer 1, Education 500 4,357 Environment 700 1,271 Documentation 1,144 3,000 Environmental Submissions 3,000 - Branch Telephone Levy Oral History 2,878 - High Country Landscape Group Urban Design Forum Treasurer's Honorarium 2,500 2,500 Bank Charges 1,306 1,123 Website Development - 2,481 Web Page Maintenance 3,717 5,506 Accountancy 4,257 2,805 Audit Fees 2,175 1,871 Office Expenses Printing & Stationery 5,710 3,014 Postages Subscriptions & Seminars Telephone & Tolls 1,912 1,551 Ordinary Depreciation 839 1, , ,842 Surplus (Deficit) of Income over Expenditure (35,822) 22,651 This Statement must be read in conjunction with the accompanying Notes to the Accounts and the Audit Report.

7 New Zealand Institute of Landscape Architects Inc. Statement of Financial Performance For the Year Ended 31st December 2009 Note Surplus (Deficit) of Income over Expenditure (35,822) 22,651 Less Disciplinary Expenses - 6,408 Add Conference and Awards Surplus(Deficit) 8,792 18,545 Less Non Tax Deductible Expenditure IRD Penalties Surplus (Deficit) ($27,425) $34,585 This Statement must be read in conjunction with the accompanying Notes to the Accounts and the Audit Report.

8 New Zealand Institute of Landscape Architects Inc. Statement of Movements in Equity For the Year Ended 31st December Equity at 1st January , ,937 Net Surplus (Deficit) for Period (27,425) 34,585 Total Recognised Revenues and Expenses (27,425) 34,585 Equity at 31st December 2009 $236,098 $263,523 This Statement must be read in conjunction with the accompanying Notes to the Accounts and the Audit Report.

9 New Zealand Institute of Landscape Architects Inc. Statement of Financial Position As at 31st December 2009 Note Current Assets Westpac - Cheque Account 50,071 26,352 Westpac - Term Deposit 153, ,038 Westpac - Awards Account 21,757 7,413 Westpac - Ready Access Account 10,486 10,486 Westpac - Conference Account 14,523 53,971 GST Refund Due Subscriptions in Arrears 11,571 10,855 Accounts Receivable 675 3,741 Accrued Interest Prepayments - Conference (2,148) 3,031 Prepayments 1,250 1, , ,017 Current Liabilities GST Payable 1,927 - Accounts Payable 9,251 2,797 Net Income in Advance - Awards 17,030-28,207 2,797 Net Current Assets (Liabilities) 233, ,220 Non Current Assets Fixed Assets (as per schedule) 955 1,794 Intangible Assets Trademark Registration 1,509 1, , ,523 Net Assets (Liabilities) $236,098 $263,523 Members Funds Retained Earnings (Accumulated Losses) 236, ,523 Total Members Funds $236,098 $263,523 President Treasurer This Statement must be read in conjunction with the accompanying Notes to the Accounts and Audit Report.

10 New Zealand Institute of Landscape Architects Inc. Schedule of Fixed Assets and Depreciation As at 31st December 2009 Book Gain/Loss Accum Book Cost Value Additions on Capital ---- D e p r e c i a t i o n ---- Deprec Value Asset Price 01/01/2009 Disposals Disposal Profit Mth Rate $ 31/12/ /12/2009 Office Equipment Display Stand 10, % DV 61 9, Display Stand % DV Filing Cabinet % DV Cash Manager Software % DV Website Development , % DV 33 1, Website Development & Data 1, % DV 48 1, Intergration Database Intergration - Special 5, % DV 243 4, Project Website - Online Forum 2, % DV 442 1, Total Office Equipment 20,848 1, , Total Assets 20,848 1, ,

11 New Zealand Institute of Landscape Architects Inc. Notes to the Financial Statements For the Year Ended 31st December 2009 REPORTING ENTITY New Zealand Institute of Landscape Architects Inc. is an Incorporated Society registered under the Incorporated Societies Act New Zealand Institute of Landscape Architects Inc. is a reporting entity for the purposes of the Financial Reporting Act The financial statements of New Zealand Institute of Landscape Architects Inc. have been prepared in accordance with the Financial Reporting Act MEASUREMENT BASE The accounting principles recognised as appropriate for the measurement and reporting of earnings and financial position on an historical basis have been followed by the entity, except where revaluations of assets are incorporated. Accrual accounting concepts have also been adopted to match expenses and revenue. Reliance is placed on the fact that the entity is a going concern. SPECIFIC ACCOUNTING POLICIES The following specific accounting policies, which materially affect the measurement of financial performance and financial position of the entity, have been applied: Goods and Services Tax The Financial Statements have been prepared on a GST exclusive basis, with the exception of Accounts Receivable or Payable. Fixed Assets Fixed assets are valued at cost less aggregate depreciation. Depreciation Depreciation of the assets has been calculated at the maximum rates permitted by the Income Tax Act This method is considered appropriate to the business. The rates used are shown on the depreciation schedule forming part of the accounts. Accounts Receivable Accounts Receivable are stated at their estimated realisable value. Income Tax No provision for income tax has been made as the Institute is exempt from Income Tax under the provisions of the Income Tax Act Differential Reporting The entity qualifies for differential reporting as it is not publicly accountable and is not considered large in view of the test contained within the Framework for Differential Reporting. The entity has taken advantage of all differential reporting exemptions. 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.

12 New Zealand Institute of Landscape Architects Inc. Notes to the Financial Statements For the Year Ended 31st December CONTINGENT LIABILITIES No contingent liabilities are known to exist at balance date. 2 RELATED PARTY TRANSACTIONS There have been no material related party transactions during the financial year for which these financial statements are prepared.

13 NEW ZEALAND INSTITUTE OF LANDSCAPE ARCHITECTS (2) ANNUAL REPORT PREPARED BY THE TREASURER Annual Report 2009 Presented at 2010 AGM Final 1

14 NZILA TREASURER S REPORT 2009 PRESENTATION OF THE ANNUAL ACCOUNTS The Executive Committee is pleased to present the Treasurer s report for the 2009 calendar year. The Annual Report Summarizes the financial position of the Institute. The Institute s Treasurer has included supporting information as background material on the Executive s management of the Accounts. Explanation of data Variance Please note that Annual Report figures vary slightly from the NZILA data. The NZILA data is based on actual transactions that take place during the year as recorded in bank statements from January to December. The Accountant on the other hand adjusts the data to take account of the crossovers between one financial year and another. For example we paid for some activities undertaken in late 2007 in the 2008 financial year. Similarly the Accountant has noted transactions undertaken in late 2007 that are processed in early It is for this reason that the financial health of the institute is to be viewed with respect to the Annual Report provided by the Accountant rather than our own internal management data. Although the Institute s finances continue to remain in a healthy position the Executive is conscious that it will need to manage funds carefully over the next three years to ensure that it can continue to improve the services offered to membership. The key to our success is in my opinion the support given by members to attendance at conferences. The Annual Report indicates an overall deficit of (-$27,425) for 2009 across all entities. The following is a summary of the financial position at the end of December INVESTMENTS (Interest) (a) Term Deposit Start Year 145, End year 153, Deposit 0.00 Income (Interest) $7, (b) Ready Access Start Year 10, End Year 10, Income (Interest) $0.00 (c) Current Account Income (Interest) $ (NZILA) Total Interest $8, Annual Report $8, Minor difference relates to accrued interest adjusted for the report Comment TERM INVESTMENT ACCOUNT The Executive s financial Goal has been to maintain our Reserves Term Investment at a level consistent with one year s Annual Subscriptions. As with last year we have an approximate balance between anticipated subscription Income and the Reserves set aside for 2010 (Subs $155,000 compared with the term Investment value of $159,900) Last year we raised the issue about what the size of our Reserves should be at least set as a minimum. The Executive continue to be guided by the following issues. Executive Opinion: The Executive considers that we should continue as follows: continue to roll-over the Interest rate 5.19 Annual Report 2009 Presented at 2010 AGM Final 2

15 maintain a strong investment of $ plus minimum add to this investment fund as and when surplus funds become available through the Awards or Conference Accounts. Consider using some of the interest generated in any one year to part fund the NZILA IFLA delegate costs where these are over and above any sum allocated in the annual budget. As there is a 12month investment period any funds drawn from Account would be made at the end of each period and transferred into the current or Ready Access Account. Use of Reserves funds for special projects as and when necessary in order to at least maintain the minimum level of $ Monitor the investment fund vs subscription ratio on an annual basis and advise membership of progress at each AGM The Executive re-invested the Term Deposit at a lower Interest rate in November 2009 to achieve an 4.5% interest rate. The recession rates offered by banks were quite low across the board. By end December 2010 this will have generated about $6, interest which will take our Investment account to $159, Our Reserves position is very sound. The consensus from membership at the 2008 (9) AGM was that we should continue to monitor the value of the reserves with respect to the value of the subscriptions and general operational costs Year (Special Project Funding) The Executive is continuing to fund its Special Projects from the Operation Account, which to date has not required any draw-down from either the Ready Access or the Term Deposit. The reason for this is because: an under spend on some operational items and our ability to use cash-in-hand surpluses generated from successive years. Transfer surplus funds from the Awards and Conference Accounts as they become available. It is my opinion that we may be able to see these projects continue to be funded in this way during Despite the deficit my belief is that we can continue to maintain the Investment fund and work with the cash-in hand and surpluses from the awards and Conference accounts READY ACCESS ACCOUNT The value of this account now stands at just over $ We earn virtually nil interest on this money. This account is the first port-of call if we require additional funds for non-budget items. It is intended that surplus money from the Conference and Awards Accounts would be transferred in the first instance to this account Annual Report 2009 Presented at 2010 AGM Final 3

16 2.2. OPERATIONAL ACCOUNT (CHEQUE) Comment NZILA Analysis - (For Internal Budget Management only) Income (Excl GST and Interest) Budget 146, Income Total Recorded 214, Less Transfer Funds Conf Acc 50, Less Funds to be transferred Awards 4, Less Funds to be transferred Conference 3, Income 156, (Summary Cashbook) Income Surplus over Budget $10, Expenditure (Excl gst and Interest) Budget 146, Expenditure 192, (Summary Cashbook) Less Special Projects costs 50, Plus Accounts Payable 9, Sub Total 151, Expenditure Surplus/(Deficit over Budget) -($5,652.54) Summary Income Surplus 10, Expenditure Budget Surplus/(Deficit) -(5,652.54) Actual Ops Surplus/Deficit (NZILA) over budget $4, The following factors have contributed to this including: A reduction in membership numbers. (lost Income $4300approx) Sundry Income from Job advertisements down (Actual $1,765.63) Expenditure on the Special Projects $ Sponsorship Non-NZILA Conferences ($6500) Annual Report Accountant See Accountant Report for True Record Accountant vs NZILA Variance The Summary Cashbook comparisons shows actual transactions January 09-December 09. The Accountant merges some of our codes and allows for financial cross-overs between 2009 and The variance between the actual sundry job advert income, and subscription income and the financial statements is that a portion of the monies actually received during the year relate to work carried out in the previous year which has to be accounted for in the correct period. We do like to allow for some cash-in hand at the end of each year (at least a $ $15000) to ensure that we can carry over in the New Year. There is always an unknown difference (Contingency) between projected income assessed as part of an evaluation of the membership status (subscriptions) and the proposed Budget Subscriptions in Arrears We reported last year that we had finally achieved an acceptable level of outstanding subscription due at the end of the financial year members unpaid $23, excl gst members unpaid $21, excl gst members unpaid $11, excl gst members unpaid $10, excl gst Minor variance between Accountant figs and NZILA due to GSt assessments Annual Report 2009 Presented at 2010 AGM Final 4

17 Of the arrears due at the end of December $ was subsequently paid in early January The total 2009 subscription income received was more than the previous year Explanation a General We started the year with an (NZILA) opening balance of $29, The 2009 Operational deficit in the order of -$35, is a reflection of expenditure on the Special Projects. The Annual Accounts however don t acknowledge the $50000 transferred to the operational account from the conference account during the year as this was money previously recorded in The main expenditure items to note: b Secretarial Expenses Costs associated with this category relate to Rentals, Internet charges, Photocopying, Stationery, gifts, postage for referendum, Admin travel, Folders and Manuals. c Executive Executive costs were on target in d Associateship The panel incurred more costs than expected.$1700 e Associateship and Membership Review (Special project) The $ has been spent to date in completing Stage 1 and Stage 2 of the project. Stage 3 (Documentation) will continue in f Oral History The $2878 is an ongoing Special Project. Delayed for 2010 until finances can be reviewed after the conference. g Environment The Institute engaged Isthmus Group to prepare a submission on the RMA $3000. h Printing Publication of marketing CD $7500 Special Project i Marketing Additional promotion Urban Design Forum AGM $2500 j Registration Marketing The $ levy fees together with special project funds to allow for the production of the CD for display and distribution by local Councils. K IFLA Regional fees have been reactivated for IFLA $1342 l Non-NZILA Conference Sponsorship We sponsored EDS $5000 and Lincoln 40 th $1500 Capitation Levies 2009 July09 (08) Dec 09 Mar 10 (09) Total Auckland , , Central NI HB Manawatu Wellington Nelson Marlborough Canterbury Westland , , Southern Total $1, $6, , $9, Annual Report 2009 Presented at 2010 AGM Final 5

18 2.2.8 SUMMARY OPERATIONAL ACCOUNT Current Situation The Operational Cheque Account continues to have a healthy balance ($54,000) at the end of December There is no need to take any immediate action on transferring funds (Floats). Special Projects Operational Surplus Available (start) Special Projects 40, Transfer Funds if required $35, Should it be necessary during the course of the year to correct any shortfall between the 2009 and 2010 operational budgets, then funds will be transferred from either the Ready Access Account or the Conference Account Annual Report 2009 Presented at 2010 AGM Final 6

19 2.2.9 ANNUAL REPORT/NZILA OPERATIONAL COMPARISONS 2009 INCOME (ex GST) Budget 2009 Actual Dec 2009 Annual Report Income Subscriptions 146, , ,916 Visa Subs Entry Assoc. Application fees 1,500 2, Sponsorship Accreditation Awards Education Foundation Interest Received Investment Accounts Ready Access Separate Interest IRD Interest Current Account Awards Transfer Separate 4, Sundry Job Adverts 3,500 1, Sundry General Conference Transfer Separate 50, Conference DD Income Yellow Pages Reimburse Funds Introduced Bank Charges Suspense Net GST TOTAL 152, , , Annual Report 2009 Presented at 2010 AGM Final 7

20 ANNUAL REPORT/ NZILA OPERATIONAL COMPARISONS 2009 EXPENSES (ex GST) Budget NZILA 2009 Annual 2009 (cashmgr) Report 2009 Secretarial 35, , , Secretarial Expenses 5, , , Office Equipment Purchases 1, Photocopying Postage General Admin & Expenses Exec travel & expenses 22, , ,111 President Honorarium 5, , ,000 Presidents Extra/Ruru , ,079 Treasurer Honorarium 2, , ,500 Awards Fellow/Life Awards Student x 3 $300ea , ,200 Accounting Auditor Cashbk 5, , ,432 Legal expenses 5, NZILA Officer Insurance 2, Telecom (including 0800) 1, , ,912 Associateship 3, , ,745 Associateship Review 31, ,738 Oral History 2, ,878 Accreditation Education/CPD Portfolio 1, Graduate/Student Portfolio 1, Environment Portfolio 1, , ,700 High Country Landscape Cultural Heritage Group Urban Design 1, Exec. Working Groups 2, Documents Practice Support , ,144 Archives Printing Stationery , ,710 Construction Industry Council Registration/Marketing 3, , ,974 Marketing/Promotion 2, , ,058 Insite 2, , ,718 Landscape NZ 10, , ,000 Website Hosting ,121 Website Development Web Master 7, , ,717 Sponsorship Student MD Subscriptions & Seminars IFLA International Fees 4, IFLA regional fees & awards 1, ,684 IFLA Delegate/Travel/Accom 5, , ,536 Branch Levies 8, , ,682 Telephone Adverts 1, , NZILA Conference Account LIANZ Delegate Conf AILA Delegate Conf Non NZILA Conf Sponsor 6, ,500 NZILA Awards Account Bank/Visa Charges 1, , ,306 Subs Refunds/Dishonor Ordinary Depreciation 839 TOTAL 152, , , Annual Report 2009 Presented at 2010 AGM 8 FINAL

21 The Following is included for background information only Treasurers Information Base only. Derived from NZILA Internal Banking Database SUBSCRIPTIONS (at end December 2009) INCOME (incl GST) Estimate Nos 2009 Nos Paid 2009 Income 2009 (excl GST) Categories Registered , Registered Overseas Fellows Retired Fellow Associates Associates/os Retired Associates Affiliates G G1/os G G2/os G G3/os G G4/os G5/ G5/os G5 Ret Graduates (reduced) Students Honorary Fellows 2 Life Members 4 Arrears TOTAL Summary Income excl gst: Anticipated Income from Subscriptions 173,200 Based on all members paying Budgeted 146,500 Based on 2008 actuals NZILA end year ,255 Based on NZILA spreadsheet Annual Report 152,916 Based on Accountant assessment SUBSCRIPTIONS IN ARREARS 2009 NZILA $10, Accountant end of year indicates $11, Subscription Income History excl gst NZILA Cashmanger Annual Report $66, (Audit - $68,476.00) $71, (Audit - $72,282.00) $84, (Audit $85,487.00) $99, (Audit - $108,637.00) $119, (Audit - $129,902.00) $141, (Audit- $129,423.00) $160, (Audit- $142,539.00) $156, (Annual Report $152,916) $155, (Budget) 5.19 Annual Report 2009 Presented at 2010 AGM 9 FINAL

22 2.3. CONFERENCE ACCOUNT Annual Report (Accountant) The Account had a starting Balance of $53, The Conference Account shows a net surplus of $8, Queenstown Conference The Landscape of Lifestyle This was a highly successful regional conference. I wish to thank the committee and in particular Robin Rawson for keeping great records and informing me of their progress throughout. The conference had a book value surplus of $17,890. The Executive wishes to thank the committee for achieving such a great outcome. 15% or $2, was returned to the Branch 10% or $1, was donated to the NZILA Education Foundation Trust In August 2009 $50, (Auckland 08 and Queenstown 09) was transferred to the Operational Account. $20,000 was retained in the account for the Wellington Float Budget Wellington Conference Steve Dunn and the Wellington team seem to have raised a very good level of sponsorship and by all accounts the conference should have surplus Account Balance at end December 2009 The Account balance less the float at the end of 2009 was $14, Annual Report 2009 Presented at 2010 AGM 10 FINAL

23 2.4. AWARDS ACCOUNT Statement of Income and Expenditure No Awards event was held in 2009 The Account started the year with an opening Balance of $7, Account Balance At end of 2009 $21, Current Liabilities net Income in advance $17,030 being attributed to the net transactions relating to the 2010 Awards. The amount is the income received to December for entry fees and sponsorship less a small amount of expenditure. This amount will then be transferred back in 2010 year when the awards are run. Wellington Resene Pride of Place 2010 Heidi Monks has undertaken the task of managing the Awards event and by all accounts everything is on course to achieve a small surplus. Sponsorship Resene continues to provide the major sponsor ship to a value of $25,000+gst Lincoln University also sponsors the event. Income Entries received during 2009 have exceeded expectations with a value of $12, Annual Report 2009 Presented at 2010 AGM 11 FINAL

24 2.5 SUMMARY NZILA POSITION AT END DECEMBER 2009 Taking into account the performance of all the NZILA business activities, the Accountant advises that we have a net deficit of Income over Expenditure of (-$27,425.00) as at 31 December Operational Surplus (Deficit) (35,822.00) Less Disciplinary Expenses 0.00 Conference Surplus (Deficit) Awards Surplus (Deficit) (incl) Less IRD Penalties Total Surplus (Deficit) - ($27,425.00) Current Assets 261, Less Current Liabilities 28, Net Current Assets (Liabilities) 233, Non Current Assets (Fixed) (Website) Intangible Assets 1, (Trademark) Net Assets 236, Total Members Funds $236, Funds Reduced Funds 2008 $263,523 Funds 2009 $236,098 Reduction $27, CO-SIGNATORY I d like to thank the Vice-Treasurer Hannah Lewthwaite and David McKenzie for continuing to assist me with co-signing cheques. 2.7 RECOMMENDATION/MOTION That the Annual Report 2009 be accepted. That the Treasurer s Comments be Received and Actioned 5.19 Annual Report 2009 Presented at 2010 AGM 12 FINAL

25 NEW ZEALAND INSTITUTE OF LANDSCAPE ARCHITECTS PROPOSED BUDGET Annual Report 2009 Presented at 2010 AGM 13 FINAL

26 3. PRESENTATION OF THE OPERATIONAL BUDGET FOR Explanation Income In setting the budget for 2010 we have decided to be a bit more cautious in our income projections than last year. The world recession is continuing to cause problems for members and we are already fielding more requests than usual for hardship or staggered payment options. More members are overseas and as a result their subs are also reduced. The Executive decided not to increase the fees using the usual 2009 CPI level (2%) and instead opted for a nil increase in subscription rates. Because of the pending changes to the Membership structure we have also this year decided not to charge Registered members the annual Registration levy of $55. In effect then this means that our income will be down slightly on the 2009 level. Income surpluses from job advertising declined sharply in 2009 with fewer jobs being advertised. We suspect that the same situation will arise for The Operational Budget excludes assessment of activities associated with the Conference and Awards Accounts. Income/Expenditure projections for these activities are generally unreliable as they can fluctuate depending upon the success of the event. As in previous years the Operational Budget excludes interest income generated from the Investment and Ready Access Accounts. This income is predictable, however as we intend to continue to roll-over income earned within each account, it is not prudent to place it within the Operational Budget. Please find attached the proposed 2010 budget Proposed Income Please note that although our projected income from subscriptions is expected to be lower than 2009 we have in fact increased the overall income for the 2010 budget. We have done this by decreasing the contingency figure that is usually applied to the anticipated actual value of subscriptions expected (see the Subscription Chart) vs the budget income. So a contingency of $14380 has been allowed for. We feel confident that our projections are adequate given that Subscriptions in Arrears for 2009 was only about $ In previous years this figure had been $ Expenditure Items to be noted The budget is divided into Portfolio activities and administrative expenses in order to track the expenditure and to allow Executive Portfolio holders to manage their own budgets. The main items in the budget to note for additional funding are: (amount over last year) Administration (CPI) 800 Conference Sponsorship Non NZILA 3000 IFLA Regional Fees (New item) 1500 IFLA Delegate 2150 Telephone Yellow Pages Adverts A Telephone Yellow Pages Adverts Rather than increase the Capitation values for branches, the Executive has decided instead to take on the responsibility of organizing an advertisement in all Yellow Page Directories throughout NZ. Branches will no longer have to worry about placing adverts in their Yellow page directories. Because the cost is very high we will be seeking some membership feedback during the year to decide whether or not to continue to fund this type of advertising or use the money to promote ourselves in other ways. The main items in the budget to note for reduced funding: (amount under last year) Urban Design Exec Working Groups Marketing Web Master Annual Report 2009 Presented at 2010 AGM 14 FINAL

27 3.2 PROPOSED NZILA OPERATIONAL BUDGET 2010 INCOME (ex GST) Actual End Dec 2008 Proposed 2009 Actual Dec 2009 Proposed 2010 Income Subscriptions 135, , , , Visa Subs Entry 25, Assoc. Application fees 1,500 2, , Sponsorship Accreditation Awards Education Foundation Interest Received Investment 10, Accounts Ready Access Interest IRD Interest Current Account Awards Transfer 4, Sundry Job Adverts 4, ,500 1, , Sundry General 1, Conference Transfer 5, , Conference DD Income Yellow Pages Reimburse Funds Introduced Bank Charges Suspense Net GST TOTAL 185, , , , Annual Report 2009 Presented at 2010 AGM 15 FINAL

28 3.3 PROPOSED NZILA OPERATIONAL BUDGET 2010 EXPENSES (ex GST) Acc. NZILA 2008 Proposed NZILA 2009 Proposed Code (cashmgr) 2009 (cashmgr) 2010 Secretarial 28, , , , Secretarial Expenses 5, , , , Office Equipment Purchases 1, Photocopying Postage General Admin & Expenses Exec travel & expenses 16, , , , President Honorarium 4, , , , Presidents Extra/Ruru , Treasurer Honorarium 2, , , , Awards Fellow/Life Awards Student x 3 $300ea , Accounting Auditor Cashbk 4, , , , Legal expenses 6, , NZILA Officer Insurance 2, , Telecom (including 0800) , , , Associateship 3, , , , Associateship Review 8, , Oral History 2, Accreditation Education/CPD Portfolio 4, , , Graduate/Student Portfolio 1, , Environment Portfolio 1, , , , High Country Landscape Cultural Heritage Group Urban Design , Exec. Working Groups 2, Documents Practice Support 3, , Archives Printing Stationery 1, , Construction Industry Council Registration/Marketing 3, , Marketing/Promotion 7, , , , Insite 2, , , , Landscape NZ 5, , , , Website Hosting , Website Development 2, , Web Master 5, , , , Sponsorship Student MD Subscriptions & Seminars IFLA International Fees 4, , , IFLA regional fees & awards 1, , IFLA Delegate/Travel/Accom 4, , , , Branch Levies 7, , , , Telephone Adverts , , , NZILA Conference Account LIANZ Delegate Conf AILA Delegate Conf 2, , Non NZILA Conf Sponsor 3, , NZILA Awards Account 13, Bank/Visa Charges 1, , , , Subscription Refunds Subscription Dishonor TOTAL 159, , , , Notes 1. The budget is balanced. 2. Budget allows for CPI increase in fees of 0.0% Annual Report 2009 Presented at 2010 AGM 16 FINAL

29 3.4 Final Adopted For 2010 NZILA's 2010 subscription rates are as follows (GST exclusive) Based on a CPI Index increase of 0.0% of 2009 (Exclusive) Category Standard CPI Index CPI 0.0% 2009 excl GST Fees for 2010 Rates + CPI Fees for 2010 Rates + CPI + GST Late Rate 2010 is an additional 10% + GST Members Numbers Estimate 2010 Projected Budget Income Excl GST Std Rate Members Numbers Estimate 2010 Projected Budget Income Incl GST Std Rate Registered Registered Overseas Fellows Retired Fellow Associates Associates Overseas Associates Retired Affiliates Graduate year Grad 1 Overseas Graduate year Grad 2 Overseas Graduate year Grad 3 Overseas Graduate year Grad 4 Overseas Graduate year 5/ Grad 5/5+ Overseas Grad 55+ Retired Graduates (reduced) NA NA Students Honarary Fellows NA NA Life Members Total Annual Report 2009 Presented at 2010 AGM 17 FINAL

30 U3.5 RECOMMENDATION/MOTION That the 2010 Budget be approved by the membership Annual Report 2009 Presented at 2010 AGM 18 FINAL

31 4. SPECIAL PROJECTS ENDORSEMENT 2010 The following projects have been earmarked for action by the Executive. Project Estimate Expenditure to Date (2008,9) Development of Landscape Charter 2, ,000 Practice Documentation 10,000 3,000 3,000 Legal Review for Disciplinary 15,000 Committee Associateship/Membership Review 50,000 40, ,000 Oral History Recordings 15,900 2, ,900 IFLA Conference ,000 5,000 5,000 Promotional CD for Registered 3,000 7, members Research Officer?? Media Invite to Conferences Reg. & 500pa 500 Dinner AILA Delegate 2,500pa 2,500 2,500 2,500 IFLA Delegate 4,000pa 2,000 2,000 Budget Estimates 118,400 57,707 40,000 20,400 Approximate Value of Executive. Special project ideas $118,400. AGM Endorsement is sought for action for the 2010 financial year. 2007(8) and (9) AGM Resolution regarding the Special projects THAT the membership endorse the proposed special project programme for the 2010 financial year of Completion of the Landscape charter Completion of Stage 1 and progress the remaining Practice Support Documentation Completion of consultant report including proposed actions for Associateship and Membership Review MOTION for 2010 AGM THAT the Executive draws the budget for Special Projects only from surplus funds available over and above the $100,000 in the Investment Account. Similar Motion to be put after discussion : 5.19 Annual Report 2009 Presented at 2010 AGM 19 FINAL

32 5 TREASURER STRATEGY FOR 2010/ Account Signatories Liaise with Westpac to sort out NZILA Signatories. Remove those no longer acting as office bearers Conference and Awards Accounts Formalise Policy and Protocol Guidelines for future committees IFLA Conference 2013 Manage the 2011, 2012 budgets to ensure that the NZILA has sufficient funds available to underwrite this conference. Assist the organizing committee. 6 APPOINTMENT OF ACCOUNTANT AND AUDITOR 6.1 RECOMMENDATION/MOTION That Iles and Campbell be retained as the Institute s Accountants and Steve Jacobs & Associates as Auditors for a further term. Treasurer Grant Edge 5.19 Annual Report 2009 Presented at 2010 AGM 20 FINAL

33 7. APPENDIX 1 NEW ZEALAND INSTITUTE OF LANDSCAPE ARCHITECTS AUDITORS REPORT 2009 NZILA Representation Letter to Auditor 5.19 Annual Report 2009 Presented at 2010 AGM 21 FINAL

34 5.19 Annual Report 2009 Presented at 2010 AGM 22 FINAL

35 5.19 Annual Report 2009 Presented at 2010 AGM 23 FINAL

36 March 30,2010 Steve Jacobs & Associates PO Box 50 TAUPO f- -;,l.t lll,ir- '...:."1 'l'.lf..'.,' ',.] Nr:w Z':rarii Instiilte 0f Lnndscn!e AfihiLects Lnc P0 8ox l0-022, Th': hfl ac, Welll lton. New Zealan'l Phone: 0800 ll43 fi94!ll b: www'nzlla.co. z Dear Sir/l\4adam LETTER OF REPRESENTATION FOR THE YEAR ENDED 2OO9 This representation letter is given in connection with your audit of the financial statements of New Zealand Institute of Landscape Architects lnc. for the year ended 2009 in connection with your responsibility to express an opinion as to whether the financial statements comply wiih generally accepted accounting practice in New Zealand and give a true and fair view of the financial position of New Zealand lnstitute of Landscape Architects lnc as from January to end December 2009 and of the results of its operations {and cash flows} for the year then ended in accordance with the Financial Reporting Act We understand that your examination was conducted in accordance with the Auditing Standards issued by the Institute of Chartered Accountants of New Zealand. We also understand that your examination was (to the extent that you deemed appropriate) for the purposes of expressing an opinion on the financial statements, and that such an examination would not necessarily identify and disclose any or all irregularities should any exist. We confirm, to the best of our knowledge and belief, the following representations: The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand and give a true and fair view of the company's financial position at balance date and operations for the year then enqeo. The financial statements are free of material misstatements, or omissions. Accounting policies, as defined in the financial statements, have been applied consistently throughout the year and any significant change in accounting policy has been disclosed in the financial statements. Significant assumptions used by us in making accounting estimates, including those measured at fair value. are reasonable. No transactions or balances have been offset, except where a right of set-off is permitted by generally accepted accounting practice in New Zealand. The recofds maintained by the company during the year were adequate for the preparation of the company's financial statements and in accordance with the requirements of the lnland Revenue Department.

37 7. We have made available to you all accounting records, including supporting documentation, and there have been no material transactions which have not been recorded in the accounting records. 8. All minutes of meetings of shareholders, directors, and any sub-committees held to date have been made available to you for inspection, including summaries of recent meetings for which minutes have not yet been prepared or approved. 9. We have informed you of the existence of all agreements relating to other controlled entities or activities, joint ventures, trust funds or other contractual agreements. 10. We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. 11. Other than described in the financial statements, we are not aware of any events subsequent to year end which require adjustment of, or disclosure in, the financial statements or notes thereto. 12. The information contained in the company's financial statements is consistent with the information contained elsewhere in the annual redort. Internal Control Systems and Compliance with Laws, Regulations and Contractual Obligations 13. The company accepts that it is responsible for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. The board and Management also acknowledges its responsibility for the design and implementation of internal control to prevent and detect fraud. The company has maintained etfective internal control systems during the financial year and the systems have operated to generate accurate and reliable financial information and safeguard assets. 14. There have been no changes to, or introduction of new, information systems during the year that could adversely impact the completeness and accuracy of the company's information systems and underlying data. 15. The company accepts that it is responsible for ensuring, and has in place appropriate mechanisms to ensure that all applicable legislative, regulatory and contractual requirements which impact on the activities and functions of the company have been complied with. To the best of its knowledge the company has complied with all legislative, regulatory and contractual requirements during tne year. 16. The board and management acted during the financial year according to and within their respective powers. In addition, we have disclosed to you all known actual or potential instances of non-compliance with any legislative, regulatory or contractual requirements which we have considered for inclusion in the financial statements as a liability, contingency or commitment. 17. No claims or notices of litigation have been or are expected to be received. {other than: insert details}. 18. The board has not been directly represented by solicitors in any legal claims or disputes for the year ended {balance date}. {other than: inse details}. NZILA Treosurer 2009 Represenioiion LelTer

38 19. Expenditure relating to restricted reserves, trusts and monies held on behalf of third parties has been incurred in accordance with the purposes of the restricted reserve, trust deed or any other agreement or understanding, and has been appropriately authorised. Large gr Unusual Transactions or Events 20. We have provided full and complete information regarding the identification of related parties. The identity of related parties, related party transactions, and related amounts receivable or payable (including fees, commissions, purchases and sales, loans, transfers, leasing arrangements and guarantees) has been properly recorded and disclosed in the financial statements. 21. No loan has been made to any member of the board of directors or staff member of the company. Nor have any guarantees been entered into or securities provided in connection with a loan made to a member of the board of directors or staff member during the year that have not been disclosed in the financial statements. No member of staff has been paid for hours that they have not workeo. 22. All revenue earned during the financial year has been taken into account and, except as disclosed in the flnancial statements, the results for the year were not materially affected by: transactions of a sort not usually undertaken by the company; - circumstances of an exceptional or non-recurrent nature, charges or credits relating to prior years; - any change in the basis of accounting or application of accounting policies; - losses arising from sale and purchase commitments; or - transactions or agreements with related parties (such as members of the board or management which were not in the ordinary course of business). 23. We have disclosed to you; the results of any assessment made by the board that the financial statements of the company may be materially misstated as a result of fraud; - any fraud or suspected fraud affecting the company involving members of the board of directors, management, employees of the board or any of its subsidiaries, or any other parties; and - any allegations of fraud, or suspected fraud, affecting the company's financial statements communicated by employees, former employees, or others. 24. We have disclosed all obligations in respect of options (put and call), guarantees, on-selling and buy back agreements, and all other arrangements (contingent or othemise) relating to the acquisition or disposal of assets, including investments. 25. The company has no off-balance sheet assets or liabilities, including financial derivatives. exceot as disclosed in the financial statements. NZILA Treos!rer 200t Pepre5enlolion Lelter

39 Assets 26. The company has satisfactory title to all assets, and there are no liens or encumbrances on the assets, except for those that are disclosed in the notes to the financial statements. 27. All current assets are expected to realise, in the ordinary course of business, at least the value at which they are recorded in the financial statements and are expected to be realised within twelve months. Adequate provision has been made for all uncollectible or doubtful amounts owing to the company. 28. We have no plans to abandon lines of product or other plans or intentions that will result in any excess or obsolete inventory, and no inventory is stated at an amount in excess of net realisable value. 29. The carrying amount of non-current assets measured at historical cost has been reviewed to determine whether it is in excess of the assets' recoverable amount. Where an asset's estimated recoverable amount is lower than its carrying amount, it has been written down to that lower value. 30. Non-current assets of the company that are measured on a valuation basis are recorded at valuations that are not materially different from their fair value. 31. All property, plant and equipment is included in the financial statements. Capital expenditure charged during the year is stated at cost and represents actual additions to property, plant and equipment. Property, plant and equipment disposed of or abandoned has been removed from the financial statements. No property, plant and equipment additions or improvements of a material amount were charged to exdenses. 32. The rate of depreciation applied to each asset is sufficient to amortise the cost or valuation of that asset over its estimated remaining useful life. 33. Adequate insurance has been obtained in respect of all assets and insurable risks generally, and all policies are still current. 34. All vested assets and/or donations have been accounted for in the financial statements. Liabilities 35. All known or ascertainable material liabilities of the company at balance date have been reflected in the financial statements. 36. We have made adequate provision for all known and anticipated losses at the date of this letter. Guarantees, Contingencies and Commitments 37. The nature of any guarantee given by or on behalf of the company is fully disclosed in the financial statements. 38. There are no known material contingent liabilities or contingent assets at balance date other than those disclosed in the financial statements. 39. There are no known material commitments at balance date other than those disclosed in the financial statements. The notes to the financial statements also NZ $ rreosurer 2009 Represenlolion Leiier