Third Quarter 2015/16 (as at 31 March 2016): Financial and Activities Report

Transcription

1 16 May 2016 Hon Paul Goldsmith Minister of Commerce Parliament Buildings WELLINGTON Dear Minister, Third Quarter 2015/16 (as at 31 March 2016): Financial and Activities Report Please find attached the Commission for Financial Capability s (CFFC) report for the March quarter (3Q16) of the 2015/16 financial year. I will also forward a copy of the Retirement Villages section of this report to the Minister for Building and Construction. I look forward to talking to you in more detail about the report at our meeting on 24 May In the meantime please don t hesitate to contact me if you have any questions. Yours sincerely, Diane Maxwell Retirement Commissioner cc Brad Ward: MBIE James Hartley: MBIE Quay Building, Level 3, Quay Street, Auckland Central 1010 PO Box , Auckland City 1143 cffc.org.nz

2 Numbers at a Glance 1 January to 31 March Q16 % Change vs 2Q16 % Change vs 3Q15 Total Sorted Unique Visitors 245, %* -10.5% Total Sorted Page Views 1,267, %* -11.3% KiwiSaver Fund Finder Unique Users 15, %* -0.7% KiwiSaver Fund Finder Page Views 183, %* -9.7% CFFC Website Unique Visitors 8, % +40.6% CFFC Website Page Views 34, % +21.7% Facebook Fans 11, % +18.7% Facebook Reach - # times our content viewed on Facebook 432, % +39.8% Sorted YouTube Views 2, %* +66.0% CFFC YouTube Views 1, % -0.5% Rate Card - $ value of unpaid media coverage of Commission and Sorted (including Diane Maxwell and David Boyle) $1.8m -28.0%^ n/a Public Speaking Engagements by Commission Staff % n/a People/Families that successfully completed the intensive Sorted Programmes % # 100.0% Participants completing Sorted Fighting Fit Seminars % # n/a Participants attending Sorted Engagement Workshops % # n/a * a drop in traffic and engagement with Sorted was expected as promotion was largely halted as the rebuilt Sorted was approaching re-launch in mid-march. Promotion of Sorted continued to be held back due to a planned soft launch so that the site could be optimised prior to active promotion in April. ^ previously reported values are not comparable due to changes in reporting methodology. # 3Q16 was dominated by engagement workshops and short format seminars, rather than delivery of new intensive programmes. This is consistent with workplace and community organisations building momentum toward delivery of intensive programmes through the calendar year as our working partners use February to March (given the Christmas break) as planning periods with activity commencing April onwards (post Easter). Page 2 of 8

3 Highlights for Third Quarter to 31 March 2016 Community, Workplace and Education Community and Workplace roll-out of national programmes commenced with engagement workshops delivered to NZ Police and ADRA and Fighting Fit Seminars delivered to NZ Defence Force recruits. Engagement workshops were also conducted in West and South Auckland for community programmes sponsored by Warehouse Financial Services and for a workplace programme with Pink Batts. Vaka Tautua continued to roll out Sorted Pasifika with a new cohort starting in March. Tamaki Regeneration Company confirm Sorted Community will be the gateway for progression through their Pathway to Housing Independence programme, with delivery to commence 4Q16, once government has transferred responsibility for Tamaki s social housing stock. Education the South Auckland cluster of 9 schools is well established with 2,800 students already reached (exceeding the target of 2,500) and strong connections made between the two school clusters to strengthen sustainability and efficiently utilise resources between them. 11 professional development workshops have been provided to support lead teachers to change curriculum planning and delivery to students in each school. Northland Project the Commission s Group Manager Community & Education attended the annual Nga Puhi Festival in Kaikohe, which included meeting with the Northland College lead teacher and local NGO representatives to link feeder schools and community initiatives to the Sorted Schools programme. National Strategy the build of the National Strategy collaboration framework commenced with a national survey being completed by 94 organisations across the financial capability system. Data will be used by the Commission to identify and map the existing financial capability initiatives that are being delivered across New Zealand and assess current levels of connectedness and/or cooperation across the system. Discussion groups were held in Auckland and Wellington, with 30 organisations represented from across the financial capability system. Data from these groups will be used to build the National Strategy collaboration and reporting framework. Cross Government Collaboration the fourth Cross Government Group for Financial Capability was held in March. An update on the Government s Statement for Financial Capability is underway, and is due to be completed in 4Q16. A behavioural insights focused financial literacy provider s network meeting was delivered in collaboration with COMET Auckland in March. The first Wellington Financial Capability Network meeting was held in March with partners representing 40 organisations attending. The second meeting has been scheduled for 24 June and Minister Goldsmith has been invited to open this meeting the theme of this meeting is the scale and impact of the financial capability network in Wellington.

4 MSD Budgeting Services five Commission staff travelled to Wellington at MSD s request to support a planning session facilitated by budgeting services redesign consultants Think Place. Investor Education Investor Portal discussions are being held with MBIE around phase 2 of the project for detailed requirements, procurement planning and costing. This included meetings with the Companies Office on their involvement in the project and work with MBIE to confirm funding arrangements. KiwiSaver Survey a quantitative survey was undertaken with 2,200 New Zealanders during March to understand their current use of KiwiSaver and their thoughts on the future of KiwiSaver and Super. The findings will feed into the Retirement Income Policy Review s KiwiSaver month. KiwiSaver Improvements the Commission has continued to contribute to and support MBIE with its review of KiwiSaver annual statements. The top KiwiSaver initiatives that could improve KiwiSaver member s experiences and outcomes that were discussed with Minster Goldsmith have been incorporated in the two KiwiSaver forums as part of the Retirement Income Policy Review. Qualitative Research research is underway to provide a greater understanding of New Zealander s financial capability. In-depth interviews will be conducted with 40 families in Auckland with a range of ages, ethnicities and family life stages. The research will be used by the Commission as we continue to develop tools and support for a broad range of New Zealanders. The Exchange relaunched with a 30 organisations confirming their support. The top three initiatives for The Exchange are the OECD Conference in October, behavioural insights for investors, and KiwiSaver industry messaging. Invitations for financial support for the OECD conference will be sent early April. Public Engagement two new blogs have been released this quarter regarding home lending and KiwiSaver default members with both picked up by the IFA and PAA adviser associations. Numerous speaking engagement including: Radio Live s Your Money (50k listeners), Westpac Advisers Conference (120 staff), National Elder Conference (80 attendees), APRA KiwiSaver hits presentation (30 staff), Juno magazine industry panel (50 people), NZRG Conference (120 attendees), Age Concern Annual Conference (50 attendees) Marketing and Communications Sorted the rebuilt Sorted was launched successfully on 11 th March on schedule and on budget. The new site is much easier to use, especially on mobile phones, the browsing device for 40% of our users. Sorted is now designed around the individual with a personal dashboard anchoring behaviour change from a user s perspective rather than a mouse telling you what to do. The new Sorted includes 11 tools, 60 guides, 134 must reads, and resources for download and ordering. Page 4 of 8

5 Budgeting Application a completely new budgeting application was released on time and to budget alongside the release of Sorted. This new tool is pre-configured with budgeting categories which match people s situation in life and uses visual references for budgeting rather than the traditional spreadsheet style which many people do not identify with. The visual design also makes it easy to use and navigate on mobile phones. Planning for phase 2 development commenced immediately after launch. Consumer Debt the project to develop a mobile phone game based educational application to help people learn about consumer debt progressed to a working prototype phase. Refinements to the visual design, game mechanics and learning points were completed in this quarter. The game will provide a fun way to learn about consumer credit and the hazards and costs for the unwary. Prototype testing and with consumers will commence next quarter which will feed into final development and promotion planning. Money Week 2016 planning is well underway for Money Week 2016 which is anchored around a single behavioural action theme, planning for the future, which was drawn from the National Strategy for Financial Capability. The campaign architecture and visual design for Money Week was completed in preparation for a launch to partners on 19 May. The dates for Money Week are 5-12 September Media Reach i-sentia valued the 3Q16 media coverage at $1.8m, with a media reach of 2.8 million people. Content and Media we have focused on three key areas in 3Q16: developing video and written content ahead of the OECD International Conference on Financial Education, which the Commission is hosting later this year; launching the Tales from the Tent pop-up recording studio and nationwide tour; and producing a seven-month media strategy and programme of content for the review of retirement income policies, including a new section of cffc.org.nz to host the associated videos, opinion columns, research, surveys, media releases and submissions. Review of Retirement Income Policies Research research work in support of the review was commissioned including initiating the largest survey of public opinion on KiwiSaver. Public Engagement A seven-month programme of engagement has been drawn up to encourage public and media interest, understanding and input in the Review of Retirement Income Policies. It includes the creation of regular video content, blogs, podcasts, opinion columns, surveys, research and media releases. We are also holding stakeholder and public forums to generate discussion about the key themes. We ve built a new section on our cffc.org.nz website to house all of this content, including a feedback page and have a new address for submissions. Page 5 of 8

6 Retirement Villages Retirement Villages Code of Practice the Commission has consulted on proposed variations to clause 15 and clauses of the Retirement Villages Code of Practice in accordance with Section 91 of the Act. The focus of the proposed variations is on resolving issues as early as possible, preferably within the village through a well-functioning complaints system. The proposed variations were based on solutions generated at a stakeholder forum conducted by the Commission in October 2015, input from the Government s Centre for Dispute resolution and further independent legal peer review. The response from the Retirement Commissioner s consultation process highlighted that the proposed variations can be further improved to better achieve the purposes of the variations. The Retirement Commissioner has determined that the proposed variations require further consultation before a final recommendation is provided to the Minister for Building and Housing. Public Education a further series of seminars targeting intending retirement village residents has been delivered and the seminars continue to attract sustained demand around the country. New web based information resources are being progressively uploaded to the Commission s website. Disputes Panel Members the Commissioner has removed the names of Dispute Panel members who have been on the list for five years in accordance with Section 58 of the Retirement Villages Act and has restored their names for a further three-year period. Finance & Corporate Services Legislative Update MBIE has publically consulted on minor changes to the NZ Superannuation and Retirement Income Act 2001 via the Regulatory Systems Amendment Bill to better describe the financial capability work that the Commission performs and to clarify that the Commissioner may perform any additional functions directed by Minister Goldsmith. IT Services the Commission has transitioned to a new IT service provider and has implemented a new in-house IT server to replace previous outsourced cloud-based hosting arrangements. This project has delivered a more robust IT infrastructure and substantially reduced ongoing IT support costs. Human Resources the recruitment processes commenced for new Maori and Pasifika roles. Interviews conducted during March culminated in an appointment to the vacant Manukoloa position (Pasifika programmes) and the search for a suitable Manukura is ongoing. 2015/16 Financials the Commission had net comprehensive income of $504.7k as at 31 March 2016, a favourable variance to budget of $404.8k. An explanation of key actual vs. budget variances for 3Q16 follows: Other Crown Revenue is $224.4k unfavourable due to a FY15 year-end audit adjustment of $230k for Revenue from Non-Exchange Transactions. This related to MBIE funding for Page 6 of 8

7 targeted Maori & Pacifica projects being reclassified from Revenue Received in Advance (Balance Sheet) to Revenue (Profit & Loss) in FY15. This variance will be carried forward for future FY16 financial reporting. Other Revenue is $41k favourable primarily due to a one-off accounting gain of $32.5k attributable to the Commission s exit of its Wellington office lease (this relates to a reversal of the lease incentive liability and as such is a non-cash transaction). Corporate and Salaries and Wages are $439.8k favourable due to recruitment delays for new positions, unfilled vacancies and one-off accounting gains attributable to historical services that the Commission has received and accrued for but not been invoiced. External Relations is $95.2k favourable due to timing of expenditure related to the Commission s design and production schedule. Investor Education is $70.3k favourable due to timing of expenditure related to the Commission s scheduling of public events. Marketing is $72.7k unfavourable due to timing of expenditure related to Sorted and the Commission s increasing digital activity. Retirement Villages is $24.4k favourable due to a monitoring report not being completed in 2015/16. Statement of Comprehensive Revenue and Expenses for the 9 months ending 31 March 2016 Actual Budget Variance Revenue Crown Revenue - Appropriation $4,336,500 $4,336,500 - Crown Revenue - Other $112,736 $337,100 ($224,364) Other Revenue $107,999 $67,000 $40,999 Interest Revenue $39,429 $36,000 $3,429 Total Revenue $4,596,664 $4,776,600 ($179,936) Expenditure Community, Workplace & Education* $660,810 $673,522 $12,712 Corporate $476,109 $645,669 $169,560 External Relations $41,949 $137,155 $95,206 Financial Capability Summit/OECD $114,515 $113,750 ($765) Investor Education $24,319 $94,600 $70,281 Marketing $824,407 $751,700 ($72,707) Review of Retirement Income Policies $6,169 $22,500 $16,331 Retirement Commissioner $34,618 $34,050 ($568) Retirement Villages $48,401 $72,803 $24,402 Salaries & Wages $1,860,704 $2,130,966 $270,262 Total Expenditure $4,092,001 $4,676,715 $584,714 Net Comprehensive Income/(Deficit) $504,663 $99,885 $404,778 * Approximately $412k of the $661k of Community, Workplace and Education Programmes related expenditure has been funded via targeted project funding received from other Government entities and external third parties Page 7 of 8

8 Statement of Financial Position as at 31 March 2016 Actual Current Assets Cash and Cash Equivalents $1,378,775 Accounts Receivable $36,224 Prepayments $22,001 GST Receivable $34,005 Total Current Assets $1,471,005 Non-Current Assets Property, Plant and Equipment $436,531 Intangible Assets $475,316 Total Non-Current Assets $911,847 Total Assets $2,382,852 Current Liabilities Accounts Payable $174,451 Lease Incentive Liability $43,675 Employee Entitlements $83,966 Total Current Liabilities $302,092 Net Assets $2,080,760 Public Equity Taxpayer Funds $200,000 Accumulated Surplus $1,376,097 Net Comprehensive Income/(Deficit) $504,663 Total Public Equity $2,080,760 Page 8 of 8