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OHOKA SCHOOL Annual Report For the year ended 31 December 2020 Ministry Number: 3451 Principal: Kate McClelland School Address: Jackson Road RD 2, Kaiapoi School Phone: 03 3126840 School Email: [email protected] Members of the Board of Trustees Name Ceased Term Finishes Kate McClelland - Principal Andrea Gardner Dec-23 Daniel Myall Dec-23 Russell Pegler May-22 AJ Low May-22 Keith Godwin May-22 Amy Parish May-23 Accountant / Service Provider: Geoff Gillam Consultants Ohoka School Table of Contents Page 1 Statement of Responsibility 2 Statement of Comprehensive Revenue and Expenses 3 Statement of Changes in Net Assets/Equity 4 Statement of Financial Position 5 Cashflow Statement 6 Statement of Accounting Policies 10 Notes and Disclosures 17 Independent Auditor's Report Other Information Analysis of Variance Kiwisport Statement Ohoka School Annual Report and Financial Statements Ohoka School Statement of Comprehensive Revenue and Expense For the year ended 31 December 2020 2020 2020 2019 Budget Notes Actual (Unaudited) Actual $ $ $ Revenue Government Grants 2 1,409,957 1,362,418 1,585,213 Locally Raised Funds 3 171,931 96,795 152,230 Interest Earned 188 504 481 1,582,076 1,459,717 1,737,924 Expenses Locally Raised Funds 3 131,695 93,355 108,069 Learning Resources 4 857,067 866,811 960,491 Administration 5 105,174 92,745 186,043 Finance Costs 537 - 820 Property 6 374,808 428,195 464,104 Depreciation 7 48,751 58,884 57,328 1,518,032 1,539,990 1,776,855 Net Surplus / (Deficit) 64,044 (80,273) (38,931) Other Comprehensive Revenue and Expenses - - - Total Comprehensive Revenue and Expense for the Year 64,044 (80,273) (38,931) The above Statement of Comprehensive Revenue and Expense should be read in conjunction with the accompanying notes which form part of these financial statements. Ohoka School Annual Report and Financial Statements Page 2 Ohoka School Statement of Changes in Net Assets/Equity For the year ended 31 December 2020 Budget Actual Actual (Unaudited) 2020 2020 2019 $ $ $ Balance at 1 January 886,851 886,851 925,782 Total comprehensive revenue and expense for the year 64,044 (80,273) (38,931) Owner transactions Contribution - Furniture and Equipment Grant - - - Equity at 31 December 950,895 806,578 886,851 Retained Earnings 950,895 806,578 886,851 Reserves - - - Equity at 31 December 2020 950,895 806,578 886,851 The above Statement of Changes in Net Assets/Equity should be read in conjunction with the accompanying notes which form part of these financial statements. Ohoka School Annual Report and Financial Statements Page 3 Ohoka School Statement of Financial Position As at 31 December 2020 2020 2020 2019 Budget Notes Actual (Unaudited) Actual $ $ $ Current Assets Cash and Cash Equivalents 8 92,255 31,519 23,758 Accounts Receivable 9 61,426 60,000 47,418 GST Receivable 31,899 1,500 5,037 Prepayments 4,077 - 6,785 Funds owing for Capital Works Projects 15 - - 2,320 189,657 93,019 85,318 Current Liabilities Accounts Payable 11 86,390 89,000 75,572 Revenue Received in Advance 12 2,036 5,000 7,535 Provision for Cyclical Maintenance 13 47,083 - - Finance Lease Liability - Current Portion 14 3,458 3,000 3,501 Funds held for Capital Works Projects 15 25,206 - - 164,173 97,000 86,608 Working Capital Surplus or (Deficit) 25,484 (3,981) (1,290) Non-current Assets Property, Plant and Equipment 10 973,998 952,949 1,011,833 973,998 952,949 1,011,833 Non-current Liabilities Provision for Cyclical Maintenance 13 46,902 140,890 120,890 Finance Lease Liability 14 1,685 1,500 2,802 48,587 142,390 123,692 Net Assets 950,895 806,578 886,851 Equity 950,895 806,578 886,851 - - - The above Statement of Financial Position should be read in conjunction with the accompanying notes which form part of these financial statements. Ohoka School Annual Report and Financial Statements Page 4 Ohoka School Cash Flow Statement For the year ended 31 December 2020 2020 2020 2019 Budget Note Actual (Unaudited) Actual $ $ $ Cash flows from Operating Activities Government Grants 299,201 255,418 360,455 Locally Raised Funds 172,622 97,641 151,384 Goods and Services Tax (net) (26,862) 3,537 (1,755) Payments to Employees (141,345) (146,107) (151,640) Payments to Suppliers (245,258) (198,894) (336,170) Interest Received 188 504 481 Net cash from / (to) the Operating Activities 58,546 12,099 22,755 Cash flows from Investing Activities Proceeds from Sale of PPE (and Intangibles) - - - Purchase of PPE (and Intangibles) (8,026) - - Net cash from / (to) the Investing Activities (8,026) - - Cash flows from Financing Activities Contribution by the Ministry of Education - Furniture and Equipment - - - Grants Finance Lease Payments (4,050) (1,803) (6,825) Funds Administered on Behalf of Third Parties 22,027 (2,535) (23,715) Net cash from Financing Activities 17,977 (4,338) (30,540) Net increase/(decrease) in cash and cash equivalents 68,497 7,761 (7,785) Cash and cash equivalents at the beginning of the year 8 23,758 23,758 31,543 Cash and cash equivalents at the end of the year 8 92,255 31,519 23,758 . The statement of cash flows records only those cash flows directly within the control of the School. This means centrally funded teachers' salaries and the use of land and buildings grant and expense have been excluded. The above Cash Flow Statement should be read in conjunction with the accompanying notes which form part of these financial statements. Ohoka School Annual Report and Financial Statements Page 5 Ohoka School Notes to the Financial Statements 1. Statement of Accounting Policies For the year ended 31 December 2020 a) Reporting Entity Ohoka School (the School) is a Crown entity as specified in the Crown Entities Act 2004 and a school as described in the Education and Training Act 2020. The Board of Trustees (the Board) is of the view that the School is a public benefit entity for financial reporting purposes. b) Basis of Preparation Reporting Period The financial reports have been prepared for the period 1 January 2020 to 31 December 2020 and in accordance with the requirements of the Public Finance Act 1989. Basis of Preparation The financial statements have been prepared on a going concern basis, and the accounting policies have been consistently Financial Reporting Standards Applied The Education and Training Act 2020 requires the School, as a Crown entity, to prepare financial statements in accordance with generally accepted accounting practice. The financial statements have been prepared in accordance with generally accepted accounting practice in New Zealand, applying PBE Accounting Standards (PBE IPSAS) Reduced Disclosure Regime as appropriate to public benefit entities that qualify for Tier 2 reporting. The school is considered a Public Benefit Entity as it meets the criteria specified as “having a primary objective to provide goods and/or services for community or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for financial return to equity holders ”. PBE Accounting Standards Reduced Disclosure Regime The School qualifies for Tier 2 as the school is not publically accountable and is not considered large as it falls below the expenditure threshold of $30 million per year. All relevant reduced disclosure concessions have been taken. Measurement Base The financial statements are prepared on the historical cost basis unless otherwise noted in a specific accounting policy. Presentation Currency These financial statements are presented in New Zealand dollars, rounded to the nearest dollar. Specific Accounting Policies The accounting policies used in the preparation of these financial statements are set out below. Critical Accounting Estimates And Assumptions The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Useful lives of property, plant and equipment The School reviews the estimated useful lives of property, plant and equipment at the end of each reporting date. The School believes that the estimated useful lives of the property, plant and equipment as disclosed in the Significant Accounting Policies are appropriate to the nature of the property, plant and equipment at reporting date. Property, plant and equipment is disclosed at note 10. Critical Judgements in applying accounting policies Management has exercised the following critical judgements in applying accounting policies: Classification of leases Determining whether a lease is a finance lease or an operating lease requires judgement as to whether the lease transfers substantially all the risks and rewards of ownership to the school. Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic life of the leased asset, whether or not to include renewal options in the lease term, and determining an appropriate discount rate to calculate the present value of the minimum lease payments. Classification as a finance lease means the asset is recognised in the statement of financial position as property, plant, and equipment, whereas for an operating lease no such asset is recognised. Ohoka School Annual Report and Financial Statements Page 6 Cyclical maintenance A school recognises its obligation to maintain the Ministry’s buildings in a good state of repair as a provision for cyclical maintenance.