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Annual Report Summary 2019

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Annual Report Summary 2019 ANNUAL REPORT SUMMARY 2019 Contents 04 CHIEF EXECUTIVE REPORT 13 AUDITED FINANCIALS 28 AUDIT REPORT 31 FINANCIAL SUMMARIES 47 STATISTICS 49 ESNZ OFFICERS / STAFF EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2019 3 CEO / Chair Report 2019 ESNZ has had a solid year from a financial perspective which has provided a positive consolidated result and placed ESNZ in a more secure financial position and poised to continue development of projects that we believe will be key to the future. During the year ESNZ as a whole has provided support for a World Equestrian Games campaign in four disciplines, furthered development of the database, continued with work on an Interschools programme and revised and developed a number of policies essential to the future. As a sport we have celebrated success on the world stage and at home in New Zealand and we look forward to a dynamic and successful year in 2020 leading into the Tokyo Olympic Games. increased by 0.25 FTE. We welcomed a staff member back Overall Financial Result from maternity leave and we also saw one go on maternity ESNZ’s consolidated annual result is a surplus for the year leave which meant a crossover of payments whilst we of $572,266 for the year, that is 12.6% higher than the worked through a handover period. Staff also received a previous financial year. Revenue increased by 22% of which 3% CPI adjustment. funding, grants, and sponsorships increased by 32% and The Para sport manager role was absorbed into the operational revenue increased by 13%. organisation and is once again being handled in-house. Expenditure increased in line with revenue, by 22% with This is due to be rectified in the next financial year. increases being seen in employee related costs (19%), high performance related costs (57%), and other operating expenditure (9%), mainly through accommodation, meals The Year In Review and travel ($92k), and competition and event expenses Once again it has been a busy 12 months and we are ($95k). A proportion of this across the sports can be pleased to have completed some of our ongoing projects. attributed to costs for the World Equestrian Games. Our review of the disciplinary rules for ESNZ is now Cash generated from operations during the year was a complete and is leading the way in NZ sport. We have contribution of $228k with investing activities being a net established a clearer, more robust system which should outflow of $352k resulting in a decrease in cash resources deliver more effective results in complaint processes. Two from June 2018 of $200k. It should be noted that 89% independent Complaints Review Officers (CROs) have ($1,948k) of these funds are controlled by the various been appointed and they will oversee the initial handling of disciplines. any complaint and refer it to the correct process. We have also instigated a Member Protection Policy, a new code of conduct and a clearer social media policy. All of ESNZ National Office Performance these have taken an enormous amount of time and energy Central incurred a current year deficit of $15,716. This is and we would like to acknowledge Heidi Bulfin for her a decrease of $83,667 from the prior year and is due to work in this area alongside Gibson Sheat’s legal team and increased payroll costs (37%), increased legal costs for the the ESNZ technical committee. The final piece in this jigsaw disciplinary review (71%), and depreciation (56%). has just been finalised – the Drug and Alcohol Policy and rules for random and targeted testing of athletes, officials Within administration expenses, the increase was as a and volunteers for alcohol and recreational drugs. This will result of increased expenditure in growth and marketing sit alongside any DrugFree Sport NZ testing and will be ($25K) while the increase in depreciation was depreciation kicked off in the 2019-2020 season. on the investment in the database (19k) incurred during the The database continues to be a major development year. project. As discussed at many of the discipline annual Our FTE employment cost has risen due to changes in meetings we began the second phase of development for staff hours and the addition of a communications and the database with a capital investment of $42,000. This engagement manager. Our finance department now has will continue in 2019-20 and see improved functionality 4 EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2019 and better information available for members and sport of drama but no podium finishes which was disappointing. managers. Whilst it is frustrating that progress is slow, We do note however great finishes at Adelaide, Aachen, some of this is out of our hands with changes in tech staff. Luhmuelen, Badminton and Burghley. ESNZ was a part of the Sport NZ national capability review In project updates we have worked hard this year on of 18 key sports and will work with Sport NZ to ensure the our Breeding project with Massey University, our values organisation is reaching its full capability expectations, I and culture change project, and we are waiting for an am pleased to advise ESNZ is among the leading NSOs in opportunity to resource the Interschools programme with terms of its processes and systems. We still have work to do, but we performed well in our Sport NZ objectives this a staff member to drive the national framework for this year and we will continue to work with them to ensure we excellent opportunity. All of these projects will continue are continuously improving and doing our best. into 2019-20 and will be a key part of our work programme alongside alignment with Sport NZ and HPSNZ goals From a High Performance perspective we would like to in coaching pathways, women in sport leadership roles, acknowledge the work of Sarah Dalziell-Clout who left ESNZ this year. It is clear that Sarah’s work has been diversity and inclusion frameworks and governance exemplary and has left the HP programme with world development. We will also deliver the High Performance class processes, plans, staff and systems that will see the 2024 strategy to HPSNZ by the end of September. This has sport succeed well into the future. From a performance been a huge piece of work for the team with consultation perspective, the World Equestrian Games provided plenty in both the UK and NZ with all stakeholder groups. DISCIPLINE LOANS Negotiated Balance at Principal Interest Total TO ESNZ CENTRAL Loan start of year repaid 2019 paid 2019 remaining Dressage $37,500 $26,293 $12,809 $992 $13,484 Endurance $7,500 $5,353 $2,691 $200 $2,662 Eventing $25,500 - - - - Jumping $79,050 $51,613 $26,455 $1,866 $25,158 Total $149,550 $83,259 $41,955 $3,058 $41,304 Total Members and Equines 10,119 7,490 6,659 5,581 5,561 5,494 Membership Equines 2018 - 19 2017 - 18 2016 - 17 EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2019 5 Total Members by Category 626 Free members (Parents) 30 586 1127 Intro members 908 3795 939 Life members 939 939 Non- 429 competing 417 members 156 850 Child Members 1003 0 3419 Full members 3392 4643 0 1000 2000 3000 4000 5000 2018 - 19 2017 - 18 2016 - 17 Membership numbers have increased slightly mainly due to recognition of parents in our member numbers. Child members reduced but are reflected in full members as children reached the age of 14 and moved into the other bracket. Total Starts by Year 3,505 3,413 3,435 1,558 1,478 1,487 217 268 268 913 1,014 1,007 Dressage Endurance Eventing Show Jumping 2018 - 19 2017 - 18 2016 - 17 6 EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2019 Casual Starts Comparison 2017 - 18 and 2018 - 19 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $- Show Jumping Eventing Dresage Endurance / Show Hunter 2018 - 19 2017 - 18 There were small decreases in the discipline starts in Eventing and Jumping but these were offset by increased casual start fees which is great news for those who are competing at the lower level and wish to take a more casual approach to competing. Discipline Financial Overviews Following is a brief outline of the discipline and entity financials, please read the full information for each at the back of the annual report. Financial Performance 2018 - 19 2017 - 18 2016 - 17 2015 - 16 Central ($15,716) $67,951 ($63,099) ($173,593) Dressage $20,215 $50,348 ($18,852) $18,507 Endurance $7,734 ($7,347) $4,292 ($13,347) Eventing $36,778 ($57,323) $1,575 $33,165 Jumping $2,931 $47,650 $52,725 $55,434 High Performance $148,254 $63,656 $135,919 $41,843 NINEC Taupo $398,974 $348,445 $1,392,907 $212,003 SINEC McLeans Island ($26,904) ($5,139) $14,101 $303,239 $572,266 $508,241 $1,519,568 $477,251 The above differs slightly to the unaudited results reported by the disciplines at their AGMs. The changes are as follows. EQUESTRIAN SPORTS NEW ZEALAND Annual Report 2019 7 Show Jumping: Surplus reduced from $10,662 to $2,931 SHOW JUMPING due to depreciation of $5,317 charged and a decrease Jumping finished the year with a surplus of $2,931 that is in membership fees (Income in advance) of $235 and down on the previous year when they achieved a surplus of additional accrual for Drammen Nations Cup $3,520 (Chef $47,650 – again largely due to a 50k WEG contribution. travel). Income showed an increase of 9% due to increased revenue Eventing: Surplus reduced from $49,282 to $36,778.
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