Trust Tairāwhiti Summary Consolidated Financial Statements
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Trust Tairāwhiti Summary Consolidated Financial Statements For the year ended 31 March 2021 The trustees are pleased to present the consolidated financial statements of Trust Tairāwhiti for the year ended 31 March 2021. For and on behalf of the Board of Trustees. John Clarke Lyall Evans Trustee, Chairman Trustee, Chair of Audit and Risk Committee 23rd July 2021 Independent Auditor’s Report To the Trustees of Trust Tairāwhiti Opinion We have audited the financial statements of Trust Tairāwhiti (the ‘Entity’) and its subsidiaries (‘the Group’), which comprise the Consolidated Statement of Financial Position as at 31 March 2021, and the Consolidated Statement of Comprehensive Revenue and Expense, Statement of Changes in Net Assets/Equity and Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying consolidated financial statements, on pages F-3 to F-60, present fairly, in all material respects, the consolidated financial position of the Group as at 31 March 2021, and its consolidated financial performance and cash flows for the year then ended in accordance with Public Benefit Entity Standards. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. We are independent of the Entity in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards), and we have fulfilled our other ethical responsibilities in accordance with these requirements. Other than in our capacity as auditor and the provision of other assurance services relating to the audit of regulatory disclosure statements, we have no relationship with or interests in the Entity or any of its subsidiaries. These services have not impaired our independence as auditor of the Entity or Group. Other information The Trustees are responsible on behalf of the Group for the other information. The other information comprises the information in the Annual Report that accompanies the consolidated financial statements and the audit report. Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information obtained prior to the date of our audit report, and consider whether it is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Trustees’ responsibilities for The Trustees are responsible on behalf of the Group for the preparation and fair presentation of the the consolidated financial consolidated financial statements in accordance with Public Benefit Entity Standards, and for such statements internal control as the Trustees determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. In preparing the consolidated financial statements, the Trustees are responsible on behalf of the Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for Our objectives are to obtain reasonable assurance about whether the consolidated financial the audit of the consolidated statements as a whole are free from material misstatement, whether due to fraud or error, and to financial statements issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are F - 1 considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. A further description of our responsibilities for the audit of the consolidated financial statements is located on at the External Reporting Board’s website at: https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report- 7 This description forms part of our auditor’s report. Restriction on use This report is made solely to the Trustees, as a body, in accordance with Section 16 of the Trust Deed. Our audit has been undertaken so that we might state to the Trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Auckland, New Zealand 23 July 2021 F - 2 Consolidated Statement of Comprehensive Revenue and Expense FOR THE YEAR ENDED 31 MARCH 2021 2021 2020 Notes $'000 $'000 Revenue from exchange transactions 1 108,592 107,463 Revenue from non-exchange transactions 1 775 1,101 Total revenue 1 109,367 108,564 Operating expenditure 2 (22,390) (22,624) Depreciation and amortisation 2 (25,774) (21,910) Personnel expenses 28 (19,053) (16,915) Administrative expenses 2 (14,680) (16,739) Finance expenses 17 (11,009) (10,606) Total expenditure (92,906) (88,794) Operating surplus 16,461 19,770 Other non-operating income 3 2,406 9,796 Other non-operating expenditure 4 (3,685) (5,184) Share of surplus/(loss) of joint ventures 15 910 (258) Share of loss of associate 14 (1,200) (1,431) Surplus before income tax 14,892 22,693 Income tax expense 5 (7,416) (9,474) Net surplus after tax 7,476 13,219 Distributions for the benefit of beneficiaries Distributions and grants 29 (2,337) (4,774) Tax effect of distributions 818 1,243 Net surplus after tax and distributions 5,957 9,688 Surplus attributable as: Equity holders of the parent 5,805 9,926 Non-controlling interest 152 (238) 5,957 9,688 Other comprehensive revenue and expense: Items that will not reclassify subsequently to profit or loss: Revaluation of property, plant and equipment 68,794 47,470 Impairment of property, plant and equipment (4,997) - Tax on revaluation of property, plant and equipment (13,456) (13,294) Items that will reclassify subsequently to profit or loss: Revaluation of other investments 8,248 (3,220) Revaluation of cash flow hedges (23,546) 5,444 Tax on revaluation of cashflow hedges 6,593 (1,524) Share of associate other comprehensive income 14 7,096 (1,083) Tax on share of associate other comprehensive income 14 (1,987) 303 Total other comprehensive revenue and expense 46,745 34,096 Total comprehensive revenue for the period 52,702 43,784 Total comprehensive revenue: Equity holders of the parent 52,550 42,056 Non-controlling interest 152 1,728 52,702 43,784 These financial statements should be read in conjunction with notes and accounting policies on pages F-9 to F-60 Trust Tairawhiti F - 3 Consolidated Statement of Financial Position AS AT 31 MARCH 2021 Notes 2021 2020 $'000 $'000 ASSETS Current assets Cash and cash equivalents 25,241 20,611 Exchange trade and other receivables 10 23,559 12,400 Non exchange other receivables 10 978 848 Other investments and receivables 11 3,031 4,722 Inventory 232 84 Income tax receivable 1,275 1,306 Derivative financial instruments 19 219 3,166 Total current assets 54,535 43,137 Non-current assets Property, plant and equipment 7 676,687 607,856 Other investments and receivables 11 44,113 40,899 Derivative financial instruments 19 1,723 659 Investment properties 8 29,890 25,361 Intangible assets 9 16,117 10,392 Investment in joint venture 15 1,004 1,095 Investment in associate 14 10,483 5,864 Total non-current assets 780,017 692,126 TOTAL ASSETS 834,552 735,263 LIABILITIES Current liabilities Payables and accruals 12 22,658 21,120 Income tax payable 1,216 335 Employee entitlements 28 1,905 2,618 Derivatives financial instruments 18 19,395 772 Income in advance 751 - Total current liabilities 45,925 24,845 Non-current liabilities Loans 16 262,294 250,000 Deferred tax 5 72,788 64,546 Derivative financial instruments 18 18,466 15,428 Employee entitlements 28 2,823 1,313 Provision for restoration costs 7 1,666 1,560 Income in advance 229 275 Total non-current liabilities 358,266 333,122 TOTAL LIABILITIES 404,191 357,967 NET ASSETS 430,361 377,296 EQUITY Retained earnings 200,419 187,261 Trust capital 20,000 20,000 Reserves 207,104 167,712 Non-controlling interest 2,838 2,323 TOTAL EQUITY 430,361 377,296 These financial statements should be read in conjunction with notes and accounting policies on pages F-9 to F-60 F - 4 Trust Tairawhiti Consolidated Statement of Changes in Net