TOASTMASTERS INTERNATIONAL DISTRICT 72 NEW ZEALAND FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2016 DRAFT

Transcription

1 NEW ZEALAND FINANCIAL STATEMENTS Contents DRAFT Page Non Financial Information Entity Information 1 Statement of Service Performance 2 Financial Information Statement of Financial Performance 3 Statement of Financial Position 4 Statement of Movements in Equity 5 Statement of Cash Flows 6 Schedule of Fixed Assets 7 Accounting Policies 8-9 Notes to the Financial Statements Compiled by: Nicola Green District Finance Manager April 2017

2 ENTITY INFORMATION Reporting Entity The reporting entity is Toastmasters International District 72 ("District 72"). District 72 is a registered charity (CC 41088), first registered on 30 June Entity Structure District 72 is led by seven senior officers. These officers guide the activities and support functions of the District. The District Director, Program Quality Director and the Club Growth Director are elected each May at the Annual Business Meeting. The Immediate Past District Director is an automatic position. The IPDD acts as an advisor to the current three elected officers, who may also be referred to as the "Trio". The three remaining senior officers are the District Administration Manager, the District Finance Manag the District Public Relations Officer. The senior officers are also supported by a District Parliamentarian, appointed by the District Director. District 72 covers the whole of New Zealand. There are nine Divisions in the District, and the Divisions are broken into 60 Areas. A Division Director heads each of the Divisions and the Division Directors are elected at the Annual Business Meeting. Each Area consists of between 3 to 6 Toastmasters Clubs and is headed by an Area Director who reports to the Division Director heading the Division in which the Area resides. Area Directors are elected by their Area Councils (consisting of Club representatives) before the May Business Meeting. Area Directors not elected before the May Meeting may be appointed by the incoming District 72 Director Sources of Cash and Resources Club Members pay subscriptions to their clubs, part of which are paid direct to Toastmasters International in the United States. Toastmasters International supports its network of Toastmaster Districts throughout the world by holding a "District Account" for each District at its Headquarters in California. Districts submit a budget each year and may requisition funds from their District Account in order to operate within the confines of the agreed budget. Toastmaster subscriptions paid to Clubs also include a portion which is a local payment to the District (referred to as the District Service Charge) which covers members entry fees to District events such as Area and Division Workshops and Contests. Fund-raising The District does not carry out any other fund-raising. Volunteer Services The District is fully reliant on volunteers as it does not employ any staff to carry out the District Officer roles. The District does not receive any donated goods of any material value

3 STATEMENT OF SERVICE PERFORMANCE Outcomes The outcomes that District 72 seek are reflected in the Mission below. Toastmasters International also sets goals for each District to achieve, which are outcomes that the District is currently working towards. The outcomes are achieved by members achieving education and leadership awards, attending club leadership training and attracting new members to clubs. Ensuring that administrative duties such as the payment of subscriptions and logging of club leadership and membership information is also part of the required outcomes. Mission The Mission of Toastmasters International We empower individuals to become more effective communicators and leaders. The Mission of the District We build new Clubs and support all Clubs in achieving excellence. The Mission of a Toastmasters Club We provide a supportive and positive learning experience in which members are empowered to develop communication and leadership skills, resulting in greater self-confidence and personal growth. Outputs There are three key measurements that Toastmasters International uses to track the progress of Districts. 1. Paid Clubs consists of existing clubs which have paid dues for at least 8 members and newly chartered clubs. 2. Membership payments consists of subscriptions received from continuing existing members and new members. 3. Distinguished clubs measures the "health" of clubs by allocating points for members completing education and leadership awards, attending club leadership training and attracting new members to clubs. Each year the District is given a base to start from in order to achieve the goals set by Toastmasters International. There are three levels of goals, from lowest to highest: Distinguished, Select Distinguished and Presidents Distinguished. District 72's status as at 31 December 2016 is detailed below

4 STATEMENT OF FINANCIAL PERFORMANCE Actual Budget Variance 30-Jun Dec-15 (12 months) (6 months) $ $ $ $ $ District Revenue Membership Revenue 78,353 68,552 9, ,194 73,882 Convention Revenue 29,776 29, ,106 36,914 District Store Revenue 13,609 19,000-5,391 33,292 17,660 Division Conference Revenue 2,379 2, ,841 2,598 District Service Charge 18,814 29,520-10,706 23,621 16,503 Interest Income Miscellaneous Income ,804 Total District Revenue 142, ,275-5, , ,397 District Expenditure Convention Expenses 25,498 28,105-2,607 70,241 33,727 District Store Expenses 18,007 15,200 2,807 35,412 21,022 Marketing Building New Clubs 1,685 9,350-7,665 8,685 2,500 Membership Growth 10,223 9, ,163 2,536 Recognition 210 1, Other Expenses ,614 20,735-8,121 34,099 5,036 Communications & Public Relations District Website 3,093 2, ,444 2,783 Other Expenses ,093 2, ,444 2,783 Education & Training Training Club Officers 6,188 5, ,434 6,343 Training Division & Area Directors 2,970 4,020-1,050 5,008 3,080 Other Expenses ,156 10, ,354 9,792 Speech Contests Awards & Certificates 1,264 2,940-1,676 2,298 1,288 Other Expenses 6,144 9,955-3,811 10,738 4,968 7,407 12,895-5,488 13,036 6,256 Administration Printing, Stationery and Photocopying Telephone Postage , Bank Charges , Other Expenses 166 1,500-1, ,625 4,325-1,700 4,681 2,512 Travel Senior District Officers 15,375 16, ,102 10,284 Division Directors 5,969 6, ,391 5,627 Area Director 23,277 33,115-9,837 36,536 18,576 Other District Officers 4,746 5, ,076 5,117 49,368 61,044-11,676 68,105 39,604 Other Expenses Foreign Exchange Adjustment -4, ,257 10,101 1,619 Miscellaneous Expenses ,844-4, ,419 9,589-1,225 Total District Expenses 124, ,961-30, , ,507 Net Surplus / (Deficit) for the period 18,315-6,686 25,001 33,093 29,

5 STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER Dec Jun Dec-15 $ $ $ Equity Members Funds 245, , ,129 Represented by Current Assets BNZ Cheque Account 9,512 14,903 2,221 BNZ Convention Bank Accounts 15,144 13,016 16,241 BNZ US Dollar Account 28,800 14,094 22,670 District Reserve Account 183, , ,491 Total of Bank Accounts 237, , ,623 Sundry Debtors Prepayments 4,688 17,123 5,356 Goods & Services Taxation (GST) 5,053 6,450 1,913 Stock on Hand 11,420 9,076 14, , , ,174 Fixed Assets As per Schedule Total Assets 258, , ,265 Less Liabilities Current Liabilities Accounts Payable ,292 0 Accruals 662 1, Income in Advance 8,385 11,010 11,474 Total Liabilities 12,937 19,564 12,136 Net Assets 245, , ,

6 STATEMENT OF MOVEMENT IN EQUITY AS AT 31 DECEMBER Dec Jun Dec-15 $ $ $ Equity Members Funds as at 1st July , , ,239 Net Surplus / (Deficit) for the period 18,315 33,093 29,890 Member Funds as at 31 December , , ,129 Equity as at 31 December , , ,

7 STATEMENT OF CASH FLOWS 31-Dec Dec-15 $ $ Cash flows from operating activities Cash receipts from members 141, ,509 Cash payments to suppliers -122, ,555 Cash generated from operating activities 18,886 37,954 Interest received Net cash from operating activities 18,918 37,990 Cash flows from investing activities Purchase of fixed asset 0 0 Net cash from investing activities 0 0 Net increase/(decrease in cash and cash equivalents 18,918 37,990 Cash and cash equivalents at 1 July , ,252 Effect of exchange rate fluctuations on cash held 4,257-1,619 Cash and cash equivalents at 31 December , ,623 RECONCILIATION TO NET SURPLUS 31-Dec Dec-15 $ $ Surplus for the six months 18,315 29,890 Adjustments for: Depreciation Exchange rate fluctuations -4,257 1,619 14,058 31,927 Change in debtors and prepayments 12,434 8,364 Change in GST receivable 1,397 3,455 Change in inventories -2, Change in accounts payable and accruals -4,002-6,680 Change in income in advance -2, Cash generated from operating activities 18,918 37,990 Net cash from operating activities 18,918 37,

8 FIXED ASSET SCHEDULE AS AT 31 DECEMBER 2016 Location Depn Cost Accum NBV Cost Additions Depn Accum NBV Rate Depn Expense Depn p.a Jolyon Firth Cup -International Awarded 10% Maurice Hayes Cup - Entertainment Awarded 10% John Fauvel Cup - Table Topics Awarded 10% Ray Morse Cup - Humorous Awarded 10% Rob Henry Cup - Evaluation Awarded 10% Don Harden Memorial Trophy Awarded 10% Jack Duffy Memorial Award Awarded 10% Toastmaster of the year Cup Awarded 10% Dan Coomey Shield Awarded 10% Bulletin Award Cup Awarded 10% IPDG Trophy Awarded 10% District Banner DD 10% Convention Banner Rotorua 10% DD Gavel & Stand DD 10% Convention Stand & Gavel Rotorua 10% Timing Lights DD 10% Computer Server (purchased 1 July 2013) Wellington 33.3% 2,179 2, , , ,109 5, , ,

9 NOTES TO THE FINANCIAL STATEMENTS 1. Statement of Accounting Policies Reporting Entity The reporting entity is Toastmasters International District 72. The financial statements are prepared in accordance with Public Benefit Entity Simple Format Reporting - Accrual (Not-for-Profit) as promulgated by the XRB This is applicable as Toastmasters International District 72 does not have public accountability and has total expenses of less than $2million per annum. With the application of the XRB Accounting Framework, the Financial Report Act 2013 and the amendment to the Charities Act 2005, Toastmasters International District 72 is required to report as a Not for Profit Entity under Public Benefit Entities Standards. Toastmasters International District 72 meets the requirements to elect to report under Tier Three as it does not have public accountability as per the definition contained in XRB A1, and has total expenses less than or equal to $2 million. Accordingly, these financial statements are prepared in compliance with Tier Three of the PBE Standards for Not for Profit entities. Measurement System The measurement system adopted is that of historical cost. (a) (b) (c) (d) (e) (f) (g) (h) Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on a basis consistent with those from previous financial statements. Revenue Recognition Revenue is recorded on the occurrence of a recognition event. Such an event occurs when District 72 has a legal right to receive cash either now or in the future. All revenue received must be used in line with the requirements of Toastmasters International and with District 72 procedures. Revenue received from Toastmasters International is not required to be returned if it is not fully utilised in the current accounting period. Expense Recognition Expenses are recorded on the occurrence of a recognition event. This is where District 72 has a legal obligtion to pay cash either now or in the future. All expenditure must be in line with the requirements of Toastmasters International and with District 72 procedures. Goods and Services Taxation The Statement of Financial Performance has been prepared on a GST exclusive basis. Debtors Debtors are recorded at face value being the amount owed. Prepayments Prepayments are record at the amount relating to the future goods or services to be received. Valuation of Inventories Inventories are valued at the lower of cost and net realisable value. Fixed Assets and Depreciation Fixed Assets are included at their depreciated historic cost. Most Fixed Assets are depreciated at 10% of cost, with the exception of the computer server which is depreciated at 33.3% of cost. All assets are fully depreciated

10 NOTES TO THE FINANCIAL STATEMENTS (i) (j) (k) (l) (m) (n) Creditors and Accrued Expenses Creditors and Accrued Expenses are recorded at the amount owing. Income in Advance Income in Advance is recorded at face value, being the amount to be refunded if the event it relates to does not eventuate. Taxation No Income Tax Provision has been provided as Toastmasters International District 72 is a Registered Charity and therefore exempt from income tax. Foreign Exchange Toastmasters International requires District 72 to enter all transactions entered into during the accounting period into a Cloud Based Accounting Package (Intacct). This is translated from NZD to USD for Toastmasters International's reporting purposes. As the District Reserve (which is 71% of Total assets as at 31/12/16) is held in USD, the translation back to NZD results in forex difference. The impact is taken to the District Reserve Account and the other side to the Statement of Financial Performance. Comparatives Comparatives have been shown for the full twelve month period ended 30 June 2016, and for the six months ended 31 December Audit Under the amendments to the Chairities Act 2005, Toastmasters International District 72 does not require an audit or a review due to total expenses being under the $500,000 threshold

11 NOTES TO THE FINANCIAL STATEMENTS Membership Revenue The District 72 membership revenue figure is currently 14% ahead of budget for the 6 month period. The actual membership has increased due to the formation of 4 new clubs to date, and therefore additional membership revenue. We note that existing clubs and Area Directors are also working hard to build membership. Convention Net Income The November 2016 conference was held in Invercargill and has returned net income of $4,278 (excluding GST). The surplus is due to good cost control by the conference committee. District Store Net Income The District Store revenue is $5,391 (28%) below budget, while District Store expenses are $5,289 above budget (35%) for the 6 month period. The reason for this is increased stock was purchased ahead of the November conference. It was intended that this stock would be taken to the November conference in Invercargill, however due to road closures resulting from the November earthquake the District Store resprentative had to travel by air and a limited amount of stock was taken to the conference. Other Revenue Other Revenue is made up of District Service Charge invoiced to all clubs. This is behind budget as the budget was based on 100% of clubs paying by the end of December but payments for only 60% of the clubs were received. Clubs have not been actively chased for payment, however reminders will be sent to clubs in the early part of Marketing Marketing expenses are below budget by $5,289 for the 6 month period. Spending is under budget for marketing related to new clubs as fewer requests for funding have been received. This is partially offset by spending is over budget for marketing related to membership growth. During the 6 month period the major advertising expenditure relating to membership growth was in the form of a magazine advertorial in September as well as a nationwide media campaign during Toastmasters week in October. Communications & Public Relations Communications and Public Relations expenses relate to the District 72 website and are tracking as expected. Education and Training Education and training expenditure is on budget. Expenditure relating to Club Leadership Training was slightly over budget due to expenditure on educational materials being higher than expected. This was offset by spending under budget relating to the training of Division and Area leaders due to savings on venue hire and meal events

12 Speech Contests Round one of the speech contests (Table Topics & Humorous Speech) for Areas and Divisions took place over September and October. Speech contest revenue is $293 ahead of budget. While door charges for some Division contests were budgeted for, gold coin donations were not budgeted for which explains the revenue above budget. Speech contest expenses are $5,488 below budget for the 6 month period which is partly due to good cost control, but also due to slow presentation of expense claims by District Officers. Travel Travel expenses are $11,676 below budget for the 6 month period. This is a good result, due to District Officers booking early and obtaining good prices for flights. Some District Officers also car pooled to the November conference, helping to keep costs low. Further, the budget was based on 100% of officers attending all training, and there have been a number who have not attended training