2017-2018 ANTARCTICA NEW ZEALAND ANNUAL REPORT STATEMENT OF PURPOSE AND VALUES
VISION | Antarctica and the Southern Ocean: Valued, Protected, Understood.
PURPOSE | Inspiring people to connect with Antarctica, through knowledge and collaboration.
VALUES | People are the key to Antarctica New Zealand’s success. This includes permanent staff, fixed-term and contract staff, seconded staff from the New Zealand Defence Force and our many strategic partners in Government, the science community and other national Antarctic programmes. We seek to create a high-performance organisation underpinned by a culture of shared beliefs:
We are passionate about what we do
We care for each other and the environment
We work together
We aspire to the highest standards
We act with integrity
Antarctica New Zealand is the crown entity responsible for developing, managing and executing New Zealand government activities in Antarctica and the Southern Ocean. We also manage Scott Base, New Zealand’s Antarctic research station which supports science in the Ross Sea region. VALUED. PROTECTED. UNDERSTOOD. VALUED. PROTECTED. UNDERSTOOD. STATEMENT OF RESPONSIBILITY FOR THE ANNUAL REPORT
The Board of Antarctica New Zealand is pleased to present, in compliance with Section 151 of the Crown Entities Act 2004, the annual report for the Antarctica New Zealand Group for the year ended 30 June 2018.
Sir Brian Roche Dame Therese Walsh Board Chair Finance & Audit Committee Chair 25 October 2018 25 October 2018
© Copyright Antarctica New Zealand 2018. This work is licensed under the Creative Commons Attribution 3.0 New Zealand licence. In essence, you are free to copy, distribute and adapt the work, as long as you attribute the work to the Crown and abide by the other licence terms. To view a copy of this licence, visit http://creativecommons.org/ licenses/by/3.0/nz/. Please note that no departmental or governmental emblem, logo or Coat of Arms may be used in any way which infringes any provision of the Flags, Emblems, and Names Protection Act 1981. Attribution to the Crown should be in written form and not by reproduction of any such emblem, logo or Coat of Arms.
ISSN 1174-3948 (Print) ISSN 1177-9462 (Online) Photo Anthony Powell © Antarctica New Zealand (2018) CONTENTS
Statement of Responsibility 2 Contents 3 Chairman’s Report 4-5 Year in Review 6-7 Antarctic Science Platform 8-9 Our Committment to Health, Safety and the Environment 10 Scott Base Redevelopment 11 2017/18 Science 12-13 Antarctic Heritage Trust (AHT) 14-15 Gateway City 16-17 Being a good employer 18-19 Antarctica New Zealand Staff 20 Statement of Responsibility 21 Audit Report 22-23 Statement of Service Performance 24-30 Financial Statements 31-54 Directory – Office details, Environment Stats 56 THE CHAIRMAN'S REPORT
Antarctica New Zealand has enjoyed some outstanding achievements over the past year in support of New Zealand’s world-leading scientists. We have enabled scientists to explore new areas of Antarctica in the pursuit of knowledge that is becoming increasingly relevant in a changing world. We continue to engage New Zealanders with our important vision - Antarctica and the Southern Ocean: valued, protected, understood.
Under Budget 2017, the Government announced funding of $21 million over three years, and the expectation of funding $7 million per annum for a further four years, for new Antarctic research. In September, Antarctica New Zealand was invited to develop a plan to host this new Antarctic Strategic Science Platform. After a period of consultation and dedicated work, we have submitted this plan to the Ministry of Business, Innovation and Employment. Research conducted as part of the fund will focus on understanding Antarctica’s impact on the global earth system and how this might change in a +2°C (Paris Agreement) world. Once established, the new platform will be a significant focus of New Zealand’s Antarctic research, enabling Antarctica New Zealand to plan for and support Antarctic science well into the future.
December 2017 brought with it the launch of the Ross Sea Marine Protected Area (MPA), covering more than 1.55 million square kilometres. Antarctica New Zealand’s support of scientific research on the MPA will begin next season, contributing to international efforts to research and monitor this newly protected area.
This season, we mounted our largest Antarctic traverse since the Commonwealth Trans-Antarctic expedition. Using German Aerospace satellite data, our team of four safely proved a route across an uncharted section of the Ross Ice Shelf to the GOVERNANCE Siple Coast – 1100 kilometres from Scott Base. Here, scientists
4 Antarctica New Zealand will investigate the stability of the West Antarctic Ice Sheet in operations on the southern continent could not be met without previously warmer climates and aim to reduce the uncertainty NZDF’s dedicated logistics support. surrounding the projections of future rises in the sea level. Partnerships are critical to successful outcomes, especially Some 350 kilometres along that traverse, we supported the in a hostile and unforgiving environment such as Antarctica. Ross Ice Shelf Hot Water Drill project, drilling 370 metres New Zealand continues to collaborate closely with our through the ice shelf to the ocean below for the first time in neighbours in the Ross Sea, the United States, Italy and Korea. 40 years. A multidisciplinary team of scientists are producing a Our international relationships span operational and scientific collaborative analysis of what role the Ross Ice Shelf plays and endeavours and provide additional opportunities to support how this may change in the future. the needs of New Zealand’s Antarctic science community. This year, that collaboration included China whose crew, on their Field science nights, where scientists work off base, have Polar research vessel the RV Xue Long, helped Antarctica New increased steadily over the past four years, reaching more Zealand install a hard-shell field camp at Cape Adare for the than 1815 nights in the 2017/18 season. These rising figures New Zealand Antarctic Heritage Trust. The Trust will conserve highlight scientists’ desire to push further afield in their quest Carsten Borchgrevink’s historic huts over the next few years. for knowledge and information. I would like to make special mention of The United States Scott Base officially opened in January 1957 and has served New Antarctic Program and Christchurch City Council, with whom Zealand well. The current base is more than 40 years old and is we work closely on a variety of collaborative projects in both nearing the end of its useful life. The Scott Base Redevelopment Antarctica and Christchurch. The positive economic benefit for project will provide a safe, resilient and efficient, fit-for-purpose Christchurch from all Antarctica related operations increases facility that will better support New Zealand’s scientific and each year while the US/NZ Joint Logistics Pool provides strategic interests in Antarctica. This investment in infrastructure significant benefits for both partners. will continue to deliver significant benefits and further reinforce the high international regard for our science and operating Finally, I would like to acknowledge the Antarctica New Zealand experience in Antarctica. I look forward to Antarctica New team in both Christchurch and Antarctica for their passion and Zealand presenting the Detailed Business Case to Government commitment in delivering another successful and safe season. in December 2018 to support the redevelopment. While the science presses further afield, their commitment to a sustainable operation with a focus on health, safety and I wish to acknowledge the commitment the New Zealand environmental stewardship is uncompromising. Defence Force has to supporting Antarctica New Zealand . Operation Antarctica is the largest mission for NZDF – this season, 175 personnel including flight crew, ground crew and NZDF secondees were deployed to Antarctic duties. Scott Base had the privilege of hosting Hon Ron Mark, Minister of Sir Brian Roche Defence for his first visit to Scott Base. Antarctica New Zealand’s Board Chair Erebus - Photo Anthony Powell © Antarctica New Zealand (2018)
Annual Report 2017-2018 5 6
Antarctica NewZealand YEAR IN REVIEW Ministry of Foreign Affairs, covering covering Affairs, Foreign of Ministry all science events supported in in supported events science all 27 Preliminary Environmental 27Environmental Preliminary Evaluations submitted to the to submitted Evaluations Photo JacobAnderson2017 JULY 17 JULY 2017/18
All staff Dale Carnegie Carnegie Dale staff All Photo MeganMartin, 2017 AUGUST 17 AUGUST training
SEPTEMBER 17 Antarctica New Zealand Zealand New Antarctica Awareness Awareness Programme Photo MeganMartin,2017 of training, before before training, of begin four weeks weeks four begin Scott Base staff staff Base Scott deploying to to deploying the ice the
3000 people turn out to view Antarctic Antarctic view to out turn people 3000 OCTOBER 17 OCTOBER Photo AntarcticOffice, 2017 aircraft at Air Day Day Air at aircraft Redevelopment project visit visit project Redevelopment NOVEMBER 17 Design team from the the from team Design Photo MeganMartin,2017 Scott Base Scott DECEMBER 17 DECEMBER Ross Ice Shelf to reach reach to Shelf Ice Ross Photo NeilSilverwood,2017 through 350m of the the of 350m through The Ross Ice Shelf Shelf Ice Ross The successfully drill successfully the ocean below ocean the Drilling team Air NZ Video release Antarctic Winter School held in the Catlins for excellent communicators from around New Zealand Photo Bailey Jeffery-Butler, 2018
72 New Zealanders attended the SCAR Open Science Conference; presenting 47 posters, giving 46 oral presentations and chairing 11 sessions
JANUARY 18 FEBRUARY 18 MARCH 18 APRIL 18 MAY 18 JUNE 18
410 containers offloaded RV Xue Long with the help of 55 NZDF Personnel Photo Ross Hickey, 2018
Infrastructure into Cape Adare installed, a collaborative project with the Chinese Arctic and Release of Corey Baker Ballet filmed in Antarctic Administration Antarctica Photo Erik Bradshaw, 2018 Photo Jacob Bryant, 2018
Annual Report 2017-2018 7 Photo Neil Silverwood © Antarctica New Zealand (2018) THE PLATFORM
8 Antarctica New Zealand ANTARCTIC SCIENCE PLATFORM
Antarctica New Zealand has been invited to submit a proposal in workshops to develop core Platform research programmes. to host the Antarctic Science Platform (“the Platform”), funded The Platform represents a $7 million per annum investment by the Ministry of Business, Innovation and Employment (MBIE). into New Zealand’s Antarctic research effort over the next It is a new Strategic Science Investment "to conduct excellent seven years, and provides a stable funding environment science to understand Antarctica’s impact on the global earth to support New Zealand’s Antarctic research priorities. system, and how this might change in a +2°C (Paris Agreement) This investment comes at a time when strong foundations world”. have been established: New Zealand’s Antarctic research community is highly regarded, collaborative and influential Platform-funded research programmes will contribute to internationally, and New Zealand has effective relationships understanding the stability of the West Antarctic Ice Sheet; the with other National Antarctic programmes. impacts of change in the Antarctic atmosphere and Southern Ocean; threats to ecosystem dynamics in the Ross Sea; change The intent of the Platform will be fully realised when in terrestrial and nearshore Antarctic environments, and the New Zealand researchers are leading campaigns that are connections between them. addressing the most pressing research questions, connected nationally and internationally, effective in supporting policy The Platform will support building capability, developing initiatives, future-proofed in terms of capacity building, and technology, and long-term monitoring programmes. It will also responsive to changing research priorities and opportunities. provide an effective means of supporting policy initiatives, and be responsive to international opportunities. To date, more than Antarctica New Zealand submitted its Final Platform Plan 100 researchers, end-users and stakeholders have participated proposal to MBIE in August 2018.
antarctic science platform programme development workshops research investment – OVER – MILLION $ PER ANNUM 100 2019–2026* PARTICIPANTS 7
*Financial year Photo Rose Forrester © Antarctica New Zealand (2018) Annual Report 2017-2018 9 OUR COMMITMENT TO HEALTH AND SAFETY AND THE ENVIRONMENT
Health and Safety Environmental Protection Antarctica New Zealand’s excellent health and safety The organisation maintained its certifications for the certification management system and strong culture of participation and Environmental Management System (Enviro-Mark Diamond) achieved engagement in health and safety were formally acknowledged and Energy Management System (Energy-Mark Silver and in November 2017 when we achieved BS OHSAS 18001 CEMARS). For the 2017/18 season the Minister issued 27 certification. This is the internationally recognised British notifications of approval to Antarctica New Zealand supported Standard for health and safety management systems, which events. There were no major non-compliances with approvals BS OHSAS 18001 aligns closely with the new ISO 45001 standard released and permits. this year. To build on the strengths identified and keep up momentum beyond certification, Antarctica New Zealand has Environmental awareness remains high across all programme developed a five year strategy for health and safety. participants. Fuel spills were at their lowest for over ten years, with only five spills reported and 86% recovery of all spilled ENVIRONMENTAL material. COMMITMENT From the Audit New Zealand continued its active engagement in the ■■ "From the very top business-wide level through to Antarctic Treaty Consultative Parties meetings review of specific operations, risks are identified, assessed, Energy-Mark two Comprehensive Environmental Evaluations from two reviewed and controls put in place" Silver award other parties. We are well underway with preparing the earned ■■ "Think Safety booklets provide an additional tool Comprehensive Environmental Evaluation for the proposed for the dynamic management of hazards" Scott Base Redevelopment which will be submitted in 2020, and both health and safety and sustainability are central to the ■■ "The employee participation and consultation design process. programme... was seen to be very active and indicative of the strong safety culture present within the organisation" – TelArc Assessment Report, November 2017
LOWEST NUMBER OF • Fuel spills in 10 years • Non-compliances on record • Non-native species reports in 5 years ACHIEVEMENTS Photo Anthony Powell Photo Rebecca Roper-Gee © Antarctica New Zealand (2018) 10 Antarctica New Zealand © Antarctica New Zealand (2015) SCOTT BASE REDEVELOPMENT PROJECT
An Indicative Business Case (IBC) was submitted to the New existing building condition and better understand the unique Zealand Government in December 2016. The Government challenges that Antarctic construction brings. provided funding of $6.14M in Budget 2017 to develop the proposal into a Detailed Business Case. Antarctica New Zealand Project Team The Antarctica New Zealand in-house Project Delivery Team Design Team Appointed has been recruited in order to support the business case November 2017 saw the outcome of a competitive tender development and to manage the Design Team. The Project process that appointed a Design Team comprising four Team now consists of six full-time staff performing roles consultants to support Antarctica New Zealand in the delivery including project management, design integration, scheduling of the concept designs; and administration and records management.
■■ JASMAX and Hugh Broughton Architects – (Architect and Design Team lead) Concept Design ■■ Steensen Varming (Building Services) The Concept Design phase has seen several options developed for the project. Through a process of stakeholder engagement, ■■ WSP Opus (Civil and Structural Engineering) these options have been narrowed down to four investment ■■ Turner and Townsend (Quantity Surveying) options that will be presented in the Detailed Business Case. Within these four, one option has been identified by Members of the Project Team visited Scott Base in the 2017/2018 stakeholders as the preferred investment option and this will Antarctic summer season to familiarise themselves with the form the focus of the Design Team’s efforts as the project existing facilities; observe issues with the existing assets that moves into Preliminary Design for this preferred option in the the redevelopment project will address; carry out surveys of period through to Budget 2019.
Annual Report 2017-2018 11 Photo Anthony Powell © Antarctica New Zealand 12
Antarctica NewZealand 2017/18 SCIENCE
Photo Rod Budd © NIWA (2017) levels. to lake aims rising to which communities microbial of study responses the long-term assess a of part as sampled were lakesfrom ice sediments and communitiesMicrobial conditions. sea in changes following dispersion species for potential the highlights area this in presence their collected; also were on of the small streams the shoreline Ross Sea at New Harbour in floating Springtails temperatures. increased to organisms teams research land, of response the to assess samples On result a biological and soil collected conditions. as ice sea availability in food changes of floor sea in increases related climate- predicted to akin floor,conditions sea simulating the and Divers terrestrial conducted ecosystems. onexperiments was resilience in studied freshwater marine, Ecosystem coastal Shelf. Ice Ross the of surface the below but 800m almost floor sea the to surface), Earth’s Antarctica above 100 km (> on atmosphere upper the from collected were only observations data and this, support To not planet. the of rest the and change Zealand New implications environmental the of of projections improving of the with goal ultimate Antarctica, in change environmental of impacts the understanding on 2017/18focused in projects research Major seasons. future in programmes research support to used traverse be will overland route The Shelf. Ice Ross the of stability past the understanding for critical are that clues holds ice ocean, the the where meets zone, This sheet. ice Antarctic the of floating extension a becomes Shelf 1100 km Ice Ross Coast, the where Siple Base, the Scott from to route a navigate and successfully scientists to between technology radar and imagery satellite collaboration utilised staff operations a addition, In Base. Scott of south km 350 to up Ross Shelf Ice the Ross of the on tip sites to Sea, northern the at Adare Cape supported between teams sites at research 26 saw season field 2017/18 The
100 km
In McMurdo Sound, work continued to understand the processes and feedbacks that drive changes in the mass, t at r ri in properties and distribution of Antarctic sea ice. Using a i a t 80.7ºS a A ar specially-designed device towed beneath a Basler aircraft, sea 71.2ºS 83.5ºS ice thickness was surveyed over 4075 km of fast ice and pack ice c c tt from McMurdo Sound to the Adare Peninsula in the northern a Ross Sea. This spatially-extensive work was complemented by detailed studies of the influence of supercooled water (below its freezing temperature), exported from beneath the Ross Ice 368 m Shelf, on the formation of sea ice in McMurdo Sound.
428 m Further south, researchers used a custom-built hot-water drilling system to penetrate through almost 370 m of ice on the Ross Ice Shelf to sample the ocean and sea floor sediments below. The multidisciplinary research team collected a wealth of data which will ultimately improve our understanding of the RECONSTRUCTING PAST ICE DYNAMICS FUTURE PROJECTIONS key processes and interactions that control the rate at which 20,000 years ago this floating ice shelf will respond to a warming world. 2017/2018 FIELD SEASON
Research to support the newly-established Ross Sea region Marine Protected Area included observations that will contribute to a photo-ID catalogue for killer whales, as well as collection of small biopsy samples for studies of killer whale diet and population genetics. This season’s work represented the start of an ongoing contribution to international efforts to assess the effectiveness of the marine conservation measures. Long-term monitoring programmes continued to make measurements of atmospheric ozone and greenhouse gas concentrations, the strength and direction of Earth’s magnetic field, gravity and sea level, lightning activity and associated energy inputs to the upper atmosphere, Adélie
ANTARCTICA NEW ZEALAND SCIENCE penguin numbers, toothfish abundance, climate, and soil ACHIEVEMENTS – 2018 2017 climate. These programmes constitute some of the longest FURTHER READING Antarctic records of their types, and provide important A more detailed description of time-series from which we can detect, attribute and 2017/18 science achievements can be found in Ice Mass Balance Station monitor change. the 2017-2018 Science Achievements report. Photo Killian Russell © Antarctica New Zealand (2018)
AnnualAnnual ReportReport 2017-20182017-2018 13 Photo Neil Silverwood © Antarctica New Zealand (2018) 14
Antarctica NewZealand ANTARCTIC HERITAGE TRUST © Antarctic HeritageTrust enabling the trust to continue conservation work on ■■ ‘The Last 36’ – a short film from the Inspiring Explorers’ The Antarctic Heritage Trust is a New Zealand-based charity Antarctica’s first building. Expedition to South Georgia – was launched at with a vision of Inspiring Explorers. the New York Explorers’ Club Polar Film Festival ■■ The Trust partnered with Antarctica New Zealand and a screening for local supporters was hosted in Through its mission to conserve, share and encourage the spirit and Sir Peter Blake Trust to support an Antarctic Christchurch. of exploration the Trust cares for the remarkable expedition Youth Ambassador to join the team on the ice for bases of early Antarctic explorers including Captain Robert part of the 2017-2018 season. ■■ The Trust’s staff shared their expertise through Falcon Scott, Sir Ernest Shackleton and Sir Edmund Hillary delivering a number of presentations throughout the ■■ The Trust successfully launched a new initiative for a and the 20,000 items they left behind. It shares the legacy of year to a diverse audience. Conservation Ambassador to work with the team at exploration through outreach programmes and encourages Ross Island and this programme. ■■ The Trust joined in Antarctic Season Opening the spirit of exploration through expeditions to engage and celebrations and hosted a tent at ‘Air Day’. inspire a new generation. ■■ Essential ongoing maintenance and monitoring at Scott’s and Shackleton’s historic bases on Ross In 2017 the Trust celebrated its 30th anniversary. The Trust Island was conducted. is proud to collaborate with Antarctica New Zealand, which provides vital support to both the Trust’s world-leading In addition: conservation project in Antarctica and to the Trust’s operations ■■ The Trust’s international team of conservators, in Christchurch. based at Canterbury Museum, completed the 1500+ treatment of more than 1500 artefacts from ARTEFACTS CONSERVED Key Achievements 2017/18 the Cape Adare collection. An almost perfectly The Antarctic Heritage Trust, supported by Antarctica New preserved 106-year old fruit cake was discovered, Zealand, has achieved some significant outcomes for the generating global media interest. Trust’s Ross Sea Heritage Restoration Project: ■■ The Trust is sharing their expertise in cold climate ■■ The Trust’s team finished the conservation work on heritage conservation working with the UKAHT on Hillary’s (TAE) Hut after identifying the need for a conserving historic sites on the Antarctic Peninsula. weather-tight long-term roofing solution. A plan was developed to overclad the historic roof, meaning the The Trust has also focused on sharing and encouraging the original roof remained intact. This job completed spirit of exploration through the following initiatives: the major work on the historic building. ■■ Four young people joined the Trust and partner ■■ The Trust worked closely with Antarctica New Ousland Polar Exploration in crossing the Greenland Zealand on planning the installation of a new field ice cap, honouring Fridtjof Nansen who made the camp at Cape Adare. The camp was successfully first crossing 130 years ago. This was the Trust’s installed by an Antarctica New Zealand team third Inspiring Explorers’ Expedition. The team are supported by the crew of Xue Long (the Chinese now delivering outreach programmes to inspire national Antarctic programme’s icebreaker) others to get out and explore. © Antarctic Heritage Trust
Annual Report 2017-2018 15 16
Antarctica NewZealand CHRISTCHURCH GATEWAY TO ANTARCTICA The Christchurch Antarctic Gateway Strategy aims to ensure and Chinare34, hosted a targeted open day for 300 that Christchurch realises its full potential as an exemplary people. A China-New Zealand science workshop was Antarctic gateway city. Formally endorsed by Christchurch organised by the Ministry of Foreign Affairs and Trade City Council in May, the strategy promotes the city’s custodial (MFAT) and Antarctica New Zealand, with the Polar responsibilities as a supporter of New Zealand’s national Research Institute of China (PRIC) hosting a dinner Antarctic priorities and to realise the city’s economic, onboard environmental and community opportunities associated with the Antarctic region. The annual Antarctic Season Opening celebrations were attended by record 16 diplomats who were introduced to city As a welcoming host and provider of logistic and business innovators through a range of Antarctic-related opportunities. support to Antarctic programmes and agencies, Christchurch Scott’s statue was reinstated at this time. aims to deliver excellence and be a valued contributor in christchurch – antarctica supporting New Zealand’s interests in the Antarctic region. At the city’s ever-popular Air Day, over 3000 people explored Christchurch values the United States, Italian, Korean and the United States Air Force C-17 Globemaster, supported by New Zealand programmes operating from the city; is privileged the NSF and United States Antarctic Programme. Celebrations to host COMNAP Secretariat; and welcomes China and concluded with the Mayor formally welcoming the Italian and 72 Germany using Christchurch as their gateway to the Ross Sea. Korean Programs back to the city mid-October. 2,576 A Memorandum of Understanding on Polar Issues signed flights passengers Highlights of international Antarctic collaboration and hosting between Busan, Republic of Korea and Christchurch saw a throughout the year include: further two groups from Korea study at Gateway Antarctica and an Antarctic exhibition for Busan. ■■ Seventy-two flights and 2,576 passengers departed for Antarctica from Christchurch International Airport. City economic development agency ChristchurchNew Zealand ■■ NASA’s Stratospheric Observatory for Infrared hosted the Techweek’18 event ‘Extreme Environments – from Astronomy (SOFIA) returned to its winter base in the Antarctic to Space’ which focused on how exploration Christchurch and completed 25 star-gazing missions across the Antarctic can ready us for going to space and over a seven-week period. how Christchurch, and New Zealand, can benefit. The first New Zealand Space Challenge was launched, seeking solutions ■■ Lyttelton Port hosted USCG Polar Star, the National to safely traversing the ice using space technology. Science Foundation’s (NSF) RV Nathaniel B Palmer and resupply vessel MV Ocean Giant, Korea’s RV Araon, Christchurch’s Antarctic Gateway status provides a wonderful international sediment drilling exploration ship Joides opportunity for Christchurch residents and visitors to Resolution, China’s icebreaker RV Xue Long and Heritage experience Christchurch’s deep historic connection with Expeditions’ Spirit of Enderby. Antarctica, strengthen the city’s connection with international ■■ RV Xue Long, having supported Antarctica New Zealand programmes and raise awareness of the importance of the in installing three huts at Cape Adare, returned to Antarctic region, the science undertaken and the challenges Lyttelton and with support from the Antarctic Office and opportunities ahead.
Annual Report 2017-2018 17 BEING A GOOD EMPLOYER
Antarctica New Zealand delivers high-quality outcomes During the year we undertook an engagement survey using Employee Development for New Zealand science, environmental leadership and an external provider for the fourth year. The results continue We expect team leaders to meet monthly with each of their managing New Zealand’s interests in Antarctica. We are able to show strong engagement in the Christchurch workforce. direct reports. This provides a regular feedback opportunity for to do this because of calibre and dedication of the people People have immense pride in and are committed to Antarctica quality conversations between a team member and their team who work for us. They include a mixture of permanent and New Zealand and their work. The surveys provide us with some leader. It provides a formal avenue for reviewing performance, fixed-term staff, contractors, seconded staff from the New good insights into the different experiences staff have and recognising achievements, measuring progress against agreed Zealand Defence Force, and our many strategic partners in help to identify key drivers for us to focus on in order to build a key performance indicators (KPIs) and highlighting risks and government. We recognise that in order to achieve success, successful future which includes continuing to articulate clear opportunities. From these discussions staff development employees need to be treated fairly and properly in all aspects strategy and planning and building an inclusive culture where opportunities are identified and training needs addressed. The of their employment. Antarctica New Zealand is committed to people feel their voices are heard. end of the performance year concludes with an End of Year being a good employer. Performance appraisal which incorporates an opportunity Recruitment, Selection and Induction to reflect on the last year, achievement of KPIs and personal Antarctica New Zealand promotes Equal Employment We aim to continually enhance our systems for attracting, development, and how individual behaviour aligns with our Opportunities (EEO) to ensure that no barriers exist to prevent selecting and appointing appropriately skilled and qualified values. our people performing to their maximum potential. We have people who can contribute positively to Antarctica New Zealand’s an EEO policy and programme which are reviewed annually. objectives, values and culture. As part of our EEO programme Although Antarctica New Zealand is a small organisation We have identified continuous improvement as a strategic we provide training and support to recruiters in EEO principles opportunities for internal career development can still focus and engage regularly with staff to get their input into to eliminate any barriers or bias for potential employees. be created through challenging tasks and assignments, the development, implementation and assessment of our EEO secondments and internal promotions. Organisational training policy and programme. Ideas are incorporated from a variety Because of the remote location in which we operate in themes to support employee development are identified and of regular feedback opportunities including engagement Antarctica, we offer our seasonal Scott Base staff fixed term incorporated into our annual training plan. with our senior leadership team, through individual monthly employment of 5 months (summer only roles) or 13 months personal performance reviews, our annual staff engagement (summer/winter roles). Flexibility and Work Design survey, and through seasonal debriefs and exit interviews. We We recognise the need for workplace design that assists use our Diversity Works New Zealand membership to support We actively encourage high performing Scott Base staff, employees in balancing work with the rest of their lives. Flexible our programme, raise awareness and educate about diversity identified through our performance management system, to working arrangements that do not adversely impact business issues. return for further periods of employment in future seasons. performance are offered where possible. For example, staff will The role specific and Antarctic knowledge they bring back to work from home on occasion in order to maximise productivity Leadership, Accountability and Culture the organisation is a significant factor to our success. We have away from distractions at the office, to achieve greater flexibility Shared values form the core of our high performing culture introduced better ways to support returning staff to develop with their work hours or to avoid time spent commuting. where people thrive and develop together. Antarctica New other skills or their personal aspirations during their time off Zealand is consistently building a common culture through our ice and continue to build on this by offering other opportunities Antarctica New Zealand also has flexible leave arrangements values, using a team process model and having a strong focus and project work that uses their experience and assists with that provide opportunities for employees to achieve on accountability. Health and safety and sustainability are our seasonal planning workload. appropriate work-life balance. Managers are accountable for absolutely fundamental in everything we do. providing support and coaching to manage workloads.
18 Antarctica New Zealand WORKPLACE PROFILE
gender diversity age diversity
20 20 50 20 20 20 20182018201820 20172017201720 20 20 201620162016 Remuneration, Recognition and Conditions 15 15 40 Other 15 15 15 15 15 15 15 We seek to provide a fair, flexible and transparent recognition
10 10 10 10 10 10 10 10 and reward system that is based on performance. With 30 Female 10
5 5 this in place we can attract, retain and motivate staff with 5 5 5 5 5 5 5 20 Male the necessary knowledge, competencies and skills to meet 0 0 0 0 0 0 0 0 0 20-2920-2930-3930-3940-4940-4950-5950-5960+60+ 20-2920-2930-3930-3940-4940-4950-5950-5960+60+ 20-29 30-3920-2940-4920-2930-3950-5930-3940-4940-4960+50-5950-5960+60+ 20-29 30-39 40-49 50-59 60+ 20-29 30-39 40-49 50-59 60+ organisational goals and objectives. In addition the relationship of employees No. 10 * Permanent, fixed term staff and of pay between roles internally is important and we wish 0 seconded staff 2018 20162017 2018 20162017 2018 20162017 ethnic diversity our policies and practices to fairly reflect internal equity and * Fixed-term, Christchurch* Scott Base Scott Base contract and relativities. The remuneration methodology adopted to achieve Summer** Winter** seconded staff NZ European this is job evaluation. NZ Mao¯ri 2018 2017 Australian2016 20182018 20172017 20162016 Asian Antarctica New Zealand uses an independent external provider UK as a primary source of remuneration market data and salaries European are benchmarked annually. Salary progression is directly Other senior leadership team gender diversity linked to performance measured under the performance management system. Through our close working relationships the New Zealand Defence Force who second staff to work at Scott Base and our Harassment & Bullying Prevention2016 2017 2018 collaborations with other National Antarctic Programmes, in Antarctica New Zealand is committed to providing a work 2016 2017 20162018 2017 particular2018 those of the United States, Italy, Korea and China, environment that is free from any form of harassment, including our people experience a more diverse workplace than our own sexual and racial harassment, and has policies to this effect. We profile potentially suggests. have developed clear guidance to employees and managers outlining procedures for dealing with any allegation of bullying or harassment on a timely basis. Part of our prevention strategy culture. Our Senior Leadership team members have undertaken Health and safety is imbedded in all of our work, for example involves Team Leaders modelling appropriate behaviours and an executive safety leadership programme to ensure they better team meetings start with a topical safety discussion. Our all employees being required to comply with the State Services understand their roles and demonstrate their commitment to Health and Safety Committee is proactive, working on systems Code of Conduct. continually improve our health and safety performance. improvements, monitoring incident statistics and reviewing investigations and analyses across our Christchurch and Scott Safe and Healthy Environment We take the well-being of employees seriously and offer a range Base operations. Our culture is strong and we are actively Health and safety takes top priority at Antarctica New Zealand. of measures to support this including health checks, workplace focusing on our systems and processes to ensure they are fit for Our vision is “to continually improve the health, safety and ergonomic assessments, an annual flu vaccination clinic and an purpose and meet the current legislative requirements. We have wellbeing of our staff, contractors and visitors to ensure no one annual mole mapping clinic on site. We also provide access to undertaken a project focused on achieving accreditation for our is harmed”. We believe all injuries and occupational incidents an Employee Assistance Programme (EAP) to all employees and Health & Safety system against the OHSAS 18001 international are preventable and have set a goal of “zero harm” that we are their partners. health and safety standard, initially for our Christchurch constantly striving to achieve with an interdependent safety operations and plan to expand this to the whole organisation.
Annual Report 2017-2018 19 ANTARCTICA NEW ZEALAND’S TEAM 1 July 2017 – 30 June 2018
Christchurch Staff Peter Beggs Chief Executive Simon Shelton Senior Project Manager Amy Pamment Operations Support to Jan 2018 Kylie Wood Executive Assistant Matthew Jordan Assistant Project Manager from Aug 2017 Technical Planner from Feb 2018 Simone Kent Administration Officer Melanie Hinton Project Administrator from Aug 2017 Mike Rowe Programme Support Assistant to Aug 2017 Bailey Jeffery-Butler Receptionist to Dec 2017 Larry Cebuano Project Scheduler from Sept 2017 Maddy Bellcroft Programme Support Assistant from Sept 2017 Communications Assistant from Dec 2017 Vicki Singleton Design Integration Manager from Jan 2018 Fiona Shanhun Acting Chief Science Advisor (SLT) Jade Tait Receptionist from Dec 2017 Mike Mahon Information Technology Manager Rebecca McLeod Science Research Advisor Peter Smith GM Corporate Services & Strategy (SLT) Zane Tait IT Systems Engineer to Sept 2017 Josh Scarrow Science Programme Support from Oct 2017 Angela Lee Finance Manager to Sept 2017 Simon Trotter GM Antarctic Operations (SLT) Jana Newman GM Policy, Environment & Safety (parental leave Financial Controller from Sept 2017 Johno Leitch Engineering Solutions Manager to March 2018 from Aug 2017) (SLT) Grace Lim Management Accountant Operations Solutions Manager from March 2018 Ceisha Poirot En vironmental Manager (parental leave to March Deena Barteling Accounts & Purchasing Coordinator Paul Woodgate Logistics Manager 2018) Mashitah Robson Accounting Assistant Rob Stewart Logistics Officer Cargo Kate McKenzie Environmental Advisor Anita Kerr Information & Records Manager Amanda Rowe Logistics Officer Clothing to Sept 2017 Rebecca Roper-Gee Environmental Advisor to Aug 2017 Pamela Parker Procurement Specialist from May 2018 Logistics Coordinator from Oct 2017 Acting GM Policy, Environment & Safety from Aug Megan Martin GM Communications from Aug 2017 (SLT) Patrick Power Antarctic Programme Planner to Sept 2017 2017 (SLT) Alex McKay Communications Assistant (parental leave from Planning & Delivery Manager from Oct 2017 Pauline Sitter Environmental Advisor from Sept 2017 Dec 2017) Matt Brown Antarctic Programme Planner from Oct 2017 Natasha Barnett Health & Safety Manager to May 2018 Matthew Johnson GM Engineering (SLT) Nicky Burgess Antarctic Programme Planner from Nov 2017 Stephanie Hembury He alth & Safety Advisor from July 2017 - March Roger Kippenberger Engineering Maintenance Manager Tracey Bean Event Project Manager to Jan 2018 2018 Amy Blakemore Asset Management Engineer Tessa Walsh Base Services Planner from Oct 2017 - June 2018 Trudie Baker GM People & Performance (SLT) Jason Marshall Asset Management Engineer Ross Hickey Senior National Officer (NZDF) Julie Patterson Human Resources Manager
Scott Base Staff Tracey Bean Programme Support Supervisor (SBLT) Robin Davies Traverse Mechanic Killian Russell Carpenter (winter over) Patrick Power Programme Support Supervisor (SBLT) Andrew Hefford Southern Lakes Helicopters Pilot Jonny Harrison Electrician from Dec 2017 and Trudie Baker Base Services Supervisor (SBLT) Mark Hayes Southern Lakes Helicopters Pilot Winter Base Leader (winter over) (SBLT) Tessa Walsh Base Services Supervisor (SBLT) Michael Hayes Southern Lakes Helicopters Pilot Adrian Spillane Electrician Amy Blakemore Engineering Supervisor (SBLT) James Girling Southern Lakes Helicopters Engineer Hadley Henderson Electrician (winter over) to June 2018 Kate McKenzie Engineering Supervisor (SBLT) Nico Linde Southern Lakes Helicopters Engineer Scott Iremonger Mechanic Rex Hendry Operations Scheduler Justin Chambers Chef Greg Irvine Mechanic (winter over) to June 2018 Katherine Vaughan Field Support Stephen Fairie Chef (winter over) Wayne Lindebaum Mechanic (winter over) Feb – Oct 2018 Sam Bamford Field Support (winter over) Craig Julian Communications Operator (NZDF) Anitra Fraser Technical Support Amy Hatcher Cargo Handler (NZDF) Nikki Galpin Communications Operator (NZDF) Sanil Lad Technical Support (winter over) Shelly Giesen Logistics Support (NZDF) Patrick Crowley Communications Operator (NZDF) Jan Rajwer Telecommunications Technician (Downer) Beatriz Boucinhas Field Training Instructor Dan Moore Communications Operator (NZDF) Liam Reedy Plant Operator (NZDF) to Nov 2017 Cole Rasmussen Field Training Instructor Emma Beech Domestic Gary Besenyi Plant Operator (NZDF) to Nov 2017 Jonathan Tyler Field Training Instructor Sarah Mockett Domestic Jonathon Hearfield Plant Operator (NZDF) from Nov 2017 – Feb 2018 Christan Long Field Training Instructor Kyla Nitschke Domestic Kaydan Morrison Plant Operator (NZDF) from Nov 2017 – Feb 2018 Jeff Dunne RIS Field Camp Manager/Medic Alice Coombes Domestic/Medic (winter over) Simon Harbour Engineering Support (Air New Zealand) Nov – Dec Lana Hastie RIS Field Camp Cook Jenna McMillan Se rvices Support (Air New Zealand) Nov – Dec 2017 Kurt Roberts Traverse & Camp Engineer 2017 Richie Hunter Traverse Field Support Chelsea Lodge Shop & Bar Coordinator (Compass) Daniel Price Traverse Technical Support Steve Denby Base Engineer (winter over) SLT = Senior Leadership Team Lawrence Kees Traverse Technical Support Josh Dobson Base Engineer (winter over) and SBLT = Scott Base Leadership Team Rob Teasdale Traverse Mechanic Winter Engineering Supervisor (SBLT)
20 Antarctica New Zealand FINANCIAL STATEMENTS AND STATEMENT OF PERFORMANCE
STATEMENT OF RESPONSIBILITY FOR THE YEAR ENDED 30 JUNE 2018
In terms of Section 155 of the Crown Entities Act 2004, the Board of the Antarctica New Zealand Group is responsible for:
■■ The preparation of the financial statements and statement of service performance and for the judgements in them
■■ Establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting
In the Board’s opinion, the financial statements and statement of service performance for the year ended 30 June 2018 fairly reflect the financial position and operations of the Antarctica New Zealand Group.
Sir Brian Roche Dame Therese Walsh Board Chair Finance & Audit Committee Chair Photo Anthony Powell © Antarctica New Zealand (2018) 25 October 2018 25 October 2018 Annual Report 2017-2018 21 Independent Auditor’s Report To the readers of New Zealand Antarctic Institute’s group financial statements and performance information for the year ended 30 June 2018
The Auditor-General is the auditor of New Zealand Antarctic Institute including for each class of reportable outputs: Responsibilities of the Board for the financial and group (the Group). The Auditor-General has appointed me, • its standards of delivery performance achieved Dereck Ollsson, using the staff and resources of Audit New Zealand, statements and the performance information as compared with forecasts included in the to carry out the audit of the financial statements and the statement statement of performance expectations for the The Board is responsible on behalf of the Group for preparing of performance, of the Group on his behalf. financial year; and financial statements and performance information that are fairly presented and comply with generally accepted accounting practice Opinion • its actual revenue and output expenses as in New Zealand. The Board is responsible for such internal control We have audited: compared with the forecasts included in the as they determine is necessary to enable them to prepare financial statement of performance expectations for the statements and performance information that are free from material • the financial statements of the Group on pages 32 to 54, financial year; and misstatement, whether due to fraud or error. that comprise the statement of financial position as at 30 June 2018, the statement of comprehensive revenue and o complies with generally accepted accounting In preparing the financial statements and the performance expenses, statement of changes in equity and statement of practice in New Zealand. information, the Board is responsible on behalf of the Group for cash flows for the year ended on that date and the notes to assessing the Group’s ability to continue as a going concern. The Our audit was completed on 25 October 2018. This is the date at Board is also responsible for disclosing, as applicable, matters the financial statements including a summary of significant which our opinion is expressed. accounting policies and other explanatory information; and related to going concern and using the going concern basis of The basis for our opinion is explained below. In addition, we outline accounting, unless there is an intention to merge or to terminate the • the performance information of the Group on pages 24 to the responsibilities of the Board and our responsibilities relating activities of the Group, or there is no realistic alternative but to do so. 30. to the financial statements and the performance information, we The Board’s responsibilities arise from the Crown Entities Act 2004 In our opinion: comment on other information, and we explain our independence. and the New Zealand Antarctic Institute Act 1996. • the financial statements of the Group on pages 32 to 54: Basis for our opinion Responsibilities of the auditor for the audit of o present fairly, in all material respects: We carried out our audit in accordance with the Auditor-General’s the financial statements and the performance • its financial position as at 30 June 2018; and Auditing Standards, which incorporate the Professional and Ethical information Standards and the International Standards on Auditing (New • its financial performance and cash flows for the Zealand) issued by the New Zealand Auditing and Assurance Our objectives are to obtain reasonable assurance about whether year then ended; and the financial statements and the performance information, as a Standards Board. Our responsibilities under those standards are whole, are free from material misstatement, whether due to fraud or o comply with generally accepted accounting practice further described in the Responsibilities of the auditor section of our error, and to issue an auditor’s report that includes our opinion. in New Zealand in accordance with Public Benefit report. Entity Standards Reduced Disclosure Regime; and Reasonable assurance is a high level of assurance, but is not We have fulfilled our responsibilities in accordance with the Auditor- a guarantee that an audit carried out in accordance with the • the performance information on pages 24 to 30: General’s Auditing Standards. Auditor-General’s Auditing Standards will always detect a material o presents fairly, in all material respects, the Group’s We believe that the audit evidence we have obtained is sufficient misstatement when it exists. Misstatements are differences or performance for the year ended 30 June 2018, and appropriate to provide a basis for our opinion. omissions of amounts or disclosures, and can arise from fraud or
22 Antarctica New Zealand error. Misstatements are considered material if, individually or in based on the audit evidence obtained, whether a Our opinion on the financial statements and the performance the aggregate, they could reasonably be expected to influence material uncertainty exists related to events or conditions information does not cover the other information and we do not the decisions of readers, taken on the basis of these financial that may cast significant doubt on the Group’s ability express any form of audit opinion or assurance conclusion thereon. statements and the performance information. to continue as a going concern. If we conclude that a In connection with our audit of the financial statements and the material uncertainty exists, we are required to draw For the budget information reported in the financial statements performance information, our responsibility is to read the other attention in our auditor’s report to the related disclosures and the performance information, our procedures were limited to information. In doing so, we consider whether the other information in the financial statements and the performance checking that the information agreed to the Group’s statement of is materially inconsistent with the financial statements and the information or, if such disclosures are inadequate, to performance expectations. performance information or our knowledge obtained in the audit, modify our opinion. Our conclusions are based on the or otherwise appears to be materially misstated. If, based on our We did not evaluate the security and controls over the electronic audit evidence obtained up to the date of our auditor’s work, we conclude that there is a material misstatement of this other publication of the financial statements and the performance report. However, future events or conditions may cause information, we are required to report that fact. We have nothing information. the Group to cease to continue as a going concern. to report in this regard. As part of an audit in accordance with the Auditor-General’s • We evaluate the overall presentation, structure and Auditing Standards, we exercise professional judgement and content of the financial statements and the performance Independence maintain professional scepticism throughout the audit. Also: information, including the disclosures, and whether the We are independent of the Group in accordance with the financial statements and the performance information • We identify and assess the risks of material misstatement independence requirements of the Auditor-General’s Auditing represent the underlying transactions and events in a of the financial statements and the performance Standards, which incorporate the independence requirements of manner that achieves fair presentation. information, whether due to fraud or error, design and Professional and Ethical Standard 1 (Revised): Code of Ethics for perform audit procedures responsive to those risks, and • We obtain sufficient appropriate audit evidence Assurance Practitioners issued by the New Zealand Auditing and obtain audit evidence that is sufficient and appropriate regarding the financial statements and the performance Assurance Standards Board. to provide a basis for our opinion. The risk of not information of the entities or business activities within Other than the audit, we have no relationship with or interests in the detecting a material misstatement resulting from fraud the Group to express an opinion on the consolidated Group. is higher than for one resulting from error, as fraud financial statements and the consolidated performance may involve collusion, forgery, intentional omissions, information. We are responsible for the direction, misrepresentations, or the override of internal control. supervision and performance of the Group audit. We • We obtain an understanding of internal control relevant remain solely responsible for our audit opinion. to the audit in order to design audit procedures that are We communicate with the Board regarding, among other matters, appropriate in the circumstances, but not for the purpose the planned scope and timing of the audit and significant audit of expressing an opinion on the effectiveness of the findings, including any significant deficiencies in internal control that Dereck Ollsson Group’s internal control. we identify during our audit. Audit New Zealand • We evaluate the appropriateness of accounting policies On behalf of the Auditor-General Our responsibilities arise from the Public Audit Act 2001. used and the reasonableness of accounting estimates and Christchurch, New Zealand related disclosures made by the Board. Other information • We evaluate the appropriateness of the reported performance information within the Group’s framework The Board is responsible for the other information. The other for reporting its performance. information comprises the information included on pages 1 to 21, but does not include the financial statements and the performance • We conclude on the appropriateness of the use of the information, and our auditor’s report thereon. going concern basis of accounting by the Board and,
Annual Report 2017-2018 23 STATEMENT OF SERVICE PERFORMANCE for the year ended 30 June 2018
Performance achieved against agreed measures, standards and costs for all outputs
The overall requirement of Antarctica New Zealand is to deliver Foreign Affairs and Trade Non- ■■ Facilitating and supporting science – This class of output is intended to ensure that only high Departmental Output Class 01 Antarctic Research and Support. quality Antarctic research is selected and supported. Performance will be assessed by a range of service quality measures. The longer term impact of this output will be assessed by the growth in quality of the research performed Description Under this output class, the Minister purchases the following outputs for the development, ■■ Engaging the public – This class of output is intended to achieve a raised awareness amongst management and execution of New Zealand activities in respect of Antarctica and the Southern New Zealander’s about Antarctica and the Southern Ocean and its relevance to New Zealand. Ocean, in particular the Ross Dependency. The outputs purchased will include: Performance will be assessed by delivery of services. The effectiveness of the services will be assessed by stakeholder survey ■■ Operational presence – This class of output is intended to support New Zealand’s activities in Antarctica through the year-round safe operation of Scott Base and an efficient logistics ■■ International linkages – This class of output is intended to connect New Zealand organisations supply chain with New Zealand. Performance will be assessed on the effectiveness of the with an interest in Antarctica internationally. Performance will be assessed by the number of services provided to programme participants and partners international collaborations and engagements facilitated
■■ Environmental stewardship – This class of output is intended to achieve a high standard of environmental performance for New Zealand’s Antarctic operations and contribute to the protection of the wider Antarctic environment. Performance will be assessed by a range of service quality measures
Output Title 1.0 OPERATIONAL PRESENCE
Description This class of output is intended to support New Zealand’s activities in Antarctica through the year-round safe operation of Scott Base and an efficient logistics supply chain with New Zealand. Performance will be assessed on the effectiveness of the services provided to programme participants and partners.
Costs GROUP PARENT Full Year Actual Full Year Budget Full Year Actual Full Year Budget ($000) ($000) ($000) ($000) Revenue – Crown 15,554 15,559 15,554 15,559 Revenue – Other 584 463 584 463 Total Revenue 16,138 16,022 16,138 16,022 Total Expenses 16,197 16,130 16,197 16,130
24 Antarctica New Zealand Performance Measures Performance Standards 2017 – 2018 (Full Year Target) 2017 – 2018 (Full Year Result) Maintain a year-round operational presence at Achieved. Achieved. An operational presence has been maintained at Scott Base throughout the year. The 2017/18 Scott Base. season was delivered successfully and included support for the Ross Ice Shelf hot water drilling programme which included a deep field overland vehicle traverse return journey of 2,500 km, much of which was across remote highly crevassed terrain.
Health and Safety notifiable incidents. Zero Harm: No notifiable incidents. Not achieved. No notifiable injuries occurred during 2017/18, however two incidents with potential for serious harm were notified to WorkSafe. The first was a mild electric shock received during changing of a water filter and the second was a hand tool dropped from a height. Both incidents were fully investigated by Antarctica New Zealand and actions taken to prevent recurrence.
Environmental incidents assessed with an No moderate incidents. Achieved. There have been no environmental incidents during the year with an impact of “moderate” or impact of “moderate” (offsite spill contained higher. with outside assistance) or more.
Health and Safety systems are of high quality so Antarctica New Zealand’s health and Achieved. We have chosen to be assessed against Occupational Health and Safety Assessment Series, as to support our commitment to zero harm. safety systems are independently (officially BS OHSAS 18001: 2007) an internationally applied British Standard for occupational health and certified as ISO 45001 (or equivalent) safety management systems. compliant. This standard was chosen as it most closely aligns to the Health and Safety at Work Act 2015 and will allow transition to ISO 45001 once the New Zealand standard is finalised and external assessment becomes available. The audit was completed in November 2017 and Antarctica New Zealand’s health and safety systems were certified as BS OHSAS 18001: 2007 compliant. Although our Health and Safety systems are of high quality we do still have significant health and safety risks due to infrastructure at Scott Base, notably a high risk in the event of fire. We have safeguards in place to manage the risk and further mitigation measures are planned for 2018/19.
The US National Science Foundation confirms Achieved. Achieved. The US National Science Foundation has confirmed that Antarctica New Zealand met its annual that New Zealand’s agreed commitments to commitments to the joint United States/New Zealand logistics pool for 2017/18. the joint United States/New Zealand logistics pool were met for the year.
Work with stakeholders to ensure that New Identify commercial charter options for Achieved. The 2017/18 season operational plans and joint United States/New Zealand logistics pool Zealand has the capability to contribute to a the intercontinental transportation of commitments were met with New Zealand’s existing air assets. sustainable Antarctic airlink. operational personnel from the 2017/18 The Australian Antarctic Division’s A319 aircraft remains a back-up charter option if required. summer season and establish clear Protocols between relevant agencies have been established. protocols between relevant agencies on information sharing and escalation.
Sustainable and efficient utilisation of Report the number of person-days Achieved. The number of person-days supported in Antarctica during the 2017/18 season for science Scott Base. supported in Antarctica for science activities were: activities: ■■ Person days at Scott Base = 2,597 (2018/19 baseline = 2,500). – at Scott Base ■■ – in the field Person days at field locations = 1,815 (2018/19 baseline = 1,500). and identify an appropriate baseline target for future years. Annual Report 2017-2018 25 Performance Measures Performance Standards Antarctic programme participant’s rating of 85% overall. Achieved. The overall season result for season 2017/18 was 91%. This was the first year that impacts from how well their logistics support objectives weather delays were included in calculating the result. were achieved against the agreed plan – for both science and non-science projects (including any impacts outside of Antarctica New Zealand’s control e.g. weather).
The conservation of the historic huts and Logistics support provided in Achieved. Support was provided for the three initiatives undertaken by the Antarctic Heritage Trust (AHT) other heritage sites in the Ross Dependency accordance with the terms of the during the season: are effectively supported. Letter of Understanding between ■■ Routine maintenance programme for the historic huts on Ross Island. Antarctica New Zealand and the ■■ Construction and installation of three field huts and equipment at Cape Adare (the site of Carsten Antarctic Heritage Trust. Borchgrevink's Hut), with support from the Chinese Antarctic programme. ■■ Logistics support to invited visitors of the Antarctic Heritage Trust.
Scott Base capital plan projects: Project plan for the Scott Base Achieved. The project plan was prepared and milestones have been completed in accordance with Advance proposed Scott Base redevelopment redevelopment to design stage the planned dates. Key achievements have been the completion of the Concept Design Report and to design stage (in consultation with MFAT, prepared and first year delivered to engagement with stakeholders to identify the potential investment options that will be developed in the Treasury, and other relevant Government agreed milestones. detailed business case. Agencies).
26 Antarctica New Zealand Output Title 2.0 ENVIRONMENTAL STEWARDSHIP
Description This class of output is intended to achieve a high standard of environmental performance for New Zealand’s Antarctic operations and contribute to the protection of the wider Antarctic environment. Performance will be assessed by a range of service quality measures.
Costs GROUP PARENT Full Year Actual Full Year Budget Full Year Actual Full Year Budget ($000) ($000) ($000) ($000) Revenue – Crown 853 894 853 894 Revenue – Other 13 12 13 12 Total Revenue 866 906 866 906 Total Expenses 866 906 866 906
Performance Measures Performance Standards 2017 – 2018 (Full Year Target) 2017 – 2018 (Full Year Result) New Zealand’s Antarctic programme is an Maintain Enviro-Mark® NZ Diamond Achieved. Antarctica New Zealand was re-certified to Diamond standard following a certification audit exemplar of sustainability. Standard accreditation. completed in December 2017.
Maintain Energy-Mark® Silver Achieved. Antarctica New Zealand was re-certified to Silver standard following a certification audit accreditation. completed in November 2017.
Ministry Foreign Affairs and Trade (MFAT) Achieved. Achieved. Officials have confirmed their satisfaction with the quality and timeliness of our environmental indicates satisfaction with the quality and advice. Antarctica New Zealand staff played key roles in supporting New Zealand's continued leadership timeliness of environmental advice provided in the meetings of the Antarctic Treaty System, particularly so in the Committee on Environmental to them and to international meetings. Protection.
MFAT indicates satisfaction with the quality Achieved. Achieved. Officials have confirmed their satisfaction with the quality and timeliness of our technical advice and timeliness of technical advice on on Environmental Impact Assessments. Environmental Impact Assessments provided in support of the Minister’s responsibilities under the Antarctica (Environmental Protection) Act 1994.
Antarctica New Zealand fully complies with Compliant. Achieved. No significant non compliances were identified. Three minor non-compliances were recorded, the terms of its own Environmental Impact two involving unintentional unapproved removal of rocks, and one a lack of reporting. All three are Assessment and permit issued under the considered to have resulted in a less than minor or transitory impact on the environment. Antarctica (Environmental Protection) Act 1994.
The state of the Ross Sea region environment Five new information summaries Achieved. The following five summaries were published during the year: is better understood and managed. are contributed to the Antarctic ■■ Sampling the Southern Ocean: technology for observing the marine system. Environments Portal. ■■ Micro plastics in the Southern Ocean. ■■ Micro pollutants in Antarctic waters. ■■ Non-native microbial introductions: what risk to Antarctic ecosystems? ■■ The impacts of trampling and ground disturbances on Antarctic soils.
Annual Report 2017-2018 27 Output Title 3.0 FACILITATING AND SUPPORTING SCIENCE
Description This class of output is intended to ensure that only high quality Antarctic research is selected and supported. Performance will be assessed by a range of service quality measures. The longer term impact of this output will be assessed by the growth in quality of the research performed.
GROUP PARENT Costs Full Year Actual Full Year Budget Full Year Actual Full Year Budget ($000) ($000) ($000) ($000) Revenue – Crown 3,752 3,506 3,752 3,506 Revenue – Other 269 455 255 151 Total Revenue 4,021 3,961 4,007 3,657 Total Expenses 4,263 4,643 4,007 4,542
Performance Measures Performance Standards 2017 – 2018 (Full Year Target) 2017 – 2018 (Full Year Result) Antarctic science selection. Work closely with relevant agencies Achieved. Antarctica New Zealand has been invited to host the Antarctic Science Platform (“the to develop new science governance Platform”), funded by the Ministry of Business, Innovation and Employment. It is a new Strategic Science and delivery mechanisms in order to Investment “to conduct excellent science to understand Antarctica’s impact on the global earth system, better reflect the Government’s overall and how this might change in a +2°C (Paris agreement) world”. investments and objectives. Antarctica New Zealand will submit its final plan for hosting the Platform to MBIE in August 2018. This plan will include the framework for research to be funded by the Platform. To date, more than 100 researchers, end-users and stakeholders have participated in workshops to develop core Platform research programmes.
The value and relevance of Antarctic research Science performance information Achieved. 72 papers were published in the 2017 calendar year by researchers supported by Antarctica is measured. collected annually to measure the New Zealand (compared with 62 published in 2016). The cumulative number of citations of papers published quality of science produced by between 2012 and 2017 was 4,828 (compared with 3,895 for the previous 6-year period). The increase is Antarctica New Zealand supported partly due to papers published in high impact journals such as Nature and Science being cited many times researchers (papers produced and over the past 12 months, and is also indicative of the growing output and relevance of research funded by citations of those papers). MBIE and the New Zealand Antarctic Research Institute (NZARI).
Increase understanding of the role Antarctica Annual report on New Zealand’s In progress. A report showcasing New Zealand’s scientific achievements in Antarctica has been and the Southern Ocean play in determining scientific achievements in Antarctica completed, drawing on 2017/18 field season highlights and research published in the 2017 calendar year. future climate change by providing a Ross Sea including those related to climate The report will be publically released in September 2018. region focus. change published by 30 June 2018.
28 Antarctica New Zealand Output Title 4.0 ENGAGING THE PUBLIC
Description This class of output is intended to achieve a raised awareness amongst New Zealander’s about Antarctica and the Southern Ocean and its relevance to New Zealand. Performance will be assessed by delivery of services. The effectiveness of the services will be assessed by stakeholder survey.
Costs GROUP PARENT Full Year Actual Full Year Budget Full Year Actual Full Year Budget ($000) ($000) ($000) ($000) Revenue – Crown 486 686 486 686 Revenue – Other 8 9 8 9 Total Revenue 494 695 494 695 Total Expenses 494 695 494 695
Performance Measures Performance Standards 2017 – 2018 (Full Year Target) 2017 – 2018 (Full Year Result) Planned education, outreach and Deliver a comprehensive public Achieved. All on-ice Community Engagement Programme (CEP) events went well with positive outputs. The communication actions are undertaken awareness programme which includes outreach was broad and included an Air NZ safety video which has reached more than 18 million people. annually. media, arts, youth and invited-visitor Journalists travelling to Antarctica created more than forty direct media articles and five long-form initiatives. magazine/online pieces. The educators that we supported created resource that will reach more than eight thousand New Zealand students. Choreographer, Corey Baker continues to drive engagement with a four minute on-ice ballet dance film and a Royal NZ Ballet tour. A live installation is planned for the London Science Museum later this year which will tour New Zealand early next year.
Two stakeholder outreach functions Achieved. The following outreach functions were held: held annually. ■■ The Antarctic season-opening stakeholder event included representatives from the Christchurch-based Antarctic programs and members of the diplomatic community.
■■ Antarctic Air Day, a public festival celebrating Christchurch's role as a gateway city and the breadth of Antarctic activities it supports.
■■ Winter School, held for journalists, educators, artists and stakeholders, focused on Antarctic Sea Ice.
Annual advertising value equivalent of Achieved. Annual advertising equivalent value for the year is $3 million (excluding broadcast articles) for Antarctica New Zealand related media Antarctica New Zealand related media coverage in New Zealand. coverage in New Zealand exceeds $2 million.
Support science programmes to Achieved. Science programmes have been supported to develop their outreach plans. Examples include: develop and deliver an outreach Newshub - Space Challenge + JOIDES Resolution; TVNZ – remote sensing weather research; Hot Water plan for their scientific research in Drill story in New Zealand Geographic; Ecosystem Resilience in Kia Ora Magazine; Viral uptake of Dr Antarctica. Regina Eisert's minke whale footage and killer whale research; Air NZ supporting online scientific content; and social media promoting numerous scientific events.
Annual Report 2017-2018 29 Performance Measures Performance Standards Christchurch City Council indicates Achieved. Achieved. The Antarctic Office has written to thank Antarctica New Zealand for its support with Season satisfaction with the quality and timeliness Opening, hosting events associated with the MV Xue Long visit to Lyttelton and advising on the Antarctic of support provided to the Christchurch Gateway Strategy. Antarctica New Zealand hosted the Chief Executive and Board Chair of ChristchurchNZ Antarctic Office to promote Christchurch and at Scott Base earlier this year to experience first-hand New Zealand's activities in Antarctica as New Zealand as a valued Antarctic gateway. Christchurch looks to strengthen its reputation as a leading gateway for Antarctic scientific research.
Economic impact study completed bi-annually. Achieved. Achieved. A follow-up economic impact analysis was completed by the Agribusiness and Economics Research Unit (AERU) at Lincoln University in June 2018. The report from AERU examined the impacts of Antarctic-related activities to both the Canterbury and New Zealand economies. The results, based on 2017 data show an improvement from the previous 2015 result as follows: ■■ Canterbury direct economic impact (now $132.2m, a 6% increase from 2015). ■■ New Zealand direct economic impact (now $193.5m, an 9% increase from 2015).
Output Title 5.0 INTERNATIONAL LINKAGES
Description This class of output is intended to connect New Zealand organisations with an interest in Antarctica internationally. Performance will be assessed by the number of international collaborations and engagements facilitated.
Costs GROUP PARENT Full Year Actual Full Year Budget Full Year Actual Full Year Budget ($000) ($000) ($000) ($000) Revenue – Crown 208 208 208 208 Revenue – Other 3 3 3 3 Total Revenue 211 211 211 211 Total Expenses 211 211 211 211
Performance Measures Performance Standards 2017 – 2018 (Full Year Target) 2017 – 2018 (Actual Result) Internationally well connected Antarctic New Zealand advances the formation Achieved. New Zealand has worked collaboratively with the United States to support research programmes Programme through international exchanges; of at least two significant collaborative at Arrival Heights (supporting an expanded US Lidar research programme) and on the Ross Ice Shelf (Ross collaborations; and representation at projects with the United States in the Ice Shelf Programme). This multi-disciplinary programme drilled through 350 m of ice to study the ocean international forums. Ross Sea region. below, and aims to provide insight into the impacts of environmental change on the Ross Ice Shelf.
Conduct activities under individual Achieved. Collaboration activities have taken place with all current neighbours in the Ross Sea Region and co-operation agreements with our with Australia during the year. current neighbours in the Ross Sea Region and with Australia to realise mutual benefits.
Support the activities of the COMNAP Achieved. Antarctica New Zealand representatives attended the COMNAP AGM XXX held in Garmisch- secretariat based in Christchurch and Partenkirchen, Germany, from 11–13 June 2018, hosted by Germany’s National Antarctic Program. Antarctica play an active role at its annual meeting New Zealand staff chaired a number of sessions associated with the Ross Sea Working Group and Safety of member Antarctic Programmes. Experts Working Group and agreed to lead and participate in a range of intersessional working groups.
30 Antarctica New Zealand FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018
Photo Robin Davies © Antarctica New Zealand (2018)
Annual Report 2017-2018 31 STATEMENT OF ACCOUNTING The financial statements for Antarctica New Zealand and the Functional and presentation currency POLICIES Group are for the year ended 30 June 2018, and were approved The financial statements are presented in New Zealand dollars by the Board on 12 October 2018. and all values are rounded to the nearest thousand dollars ($000) unless otherwise stated. The functional currency of the Reporting Entity Parent and Group is New Zealand dollars. Antarctica New Zealand is the trading name of the New Zealand Basis of Preparation Antarctic Institute, a Crown Entity as defined by the Crown Statement of compliance Entities Act 2004. Antarctica New Zealand is domiciled in The financial statements of the Parent and Group have been Basis of consolidation New Zealand and operates in New Zealand as well as Antarctica prepared in accordance with the Crown Entities Act 2004, which The Group consolidated financial statements comprise the and the Southern Ocean. Antarctica New Zealand’s ultimate includes the requirement to comply with New Zealand generally financial statements of Antarctica New Zealand, and its parent is the New Zealand Crown. accepted accounting practice (NZ GAAP). subsidiaries, as at 30 June each year. The financial statements of the subsidiaries are prepared for the same reporting period as Antarctica New Zealand is responsible for developing, managing The financial statements comply with PBE IPSAS and other the Parent using consistent accounting policies. and executing New Zealand Government activities in Antarctica applicable financial reporting standards, as appropriate that and the Southern Ocean, in particular the Ross Dependency. have been authorised for use by the External Reporting Board Subsidiaries are entities that are controlled, either directly or for the Public Sector entities. For the purposes of complying with indirectly by the Parent. Control is achieved when the Group has Antarctica New Zealand (“the Parent”) was established by the NZ GAAP, the Parent and Group are eligible to apply Tier 2 PBE the power to govern the financial and operating policies of the New Zealand Antarctic Institute Act 1996. IPSAS on the basis that it does not have public accountability and entity so as to benefit from its activities. it is not defined as large. The Antarctica New Zealand Group (“the Group”) includes Subsidiaries are consolidated from the date on which control is Antarctica New Zealand and its subsidiary the New Zealand The Parent and Group have elected to report in accordance transferred to the Group and cease to be consolidated from the Antarctic Research Institute (NZARI). with Tier 2 Public Sector PBE Accounting Standards and in doing date on which control is transferred out of the Group. so has taken advantage of all applicable Reduced Disclosure NZARI is a charitable trust incorporated under the Charitable Regime ("RDR") disclosure concessions. The results of Antarctica New Zealand and New Zealand Trust Act 1957 and is registered as a charitable entity under the Antarctic Research Institute have been consolidated into the Charities Act 2005. The subsidiary is established and domiciled The accounting policies adopted in these financial statements Group’s financial statements for the year ended 30 June 2018. in New Zealand. Its purpose being to operate as a virtual, are consistent with those of the previous financial year. All inter-entity balances and transactions are eliminated on multi-disciplinary research institute dedicated to Antarctic consolidation. and Southern Ocean research. The research is funded by philanthropic contributions. Summary of Accounting Policies The accounting policies set out below have been applied Significant Accounting Policies For the purposes of financial reporting under Public Benefit Entity consistently to all periods presented in these financial statements. (a) Revenue International Public Sector Accounting Standards (PBE IPSAS), Revenue is recognised to the extent that it is probable that Antarctica New Zealand and the Group are Public Benefit Entities Measurement base the economic benefit will flow to the Parent and Group, and (PBEs) and have elected to apply Tier 2 PBE IPSAS. The financial statements have been prepared on a historical cost revenue can be reliably measured. Revenue is measured basis. when earned at the fair value of consideration received
32 Antarctica New Zealand or receivable. The following specific recognition criteria These revenues are recognised when the conditions lessor substantially retains the risks and rewards of must be met before revenue is recognised. attached to the grant has been complied with. Where ownership of an asset, are recognised on a straight-line there are unfulfilled conditions attached to the revenue, basis over the term of the lease in the surplus or deficit. Revenue from non-exchange transactions the amount relating to the unfulfilled condition is Lease incentives received are recognised in the surplus or Non-exchange transactions arise where an entity receives recognised as a liability and released to revenue as the deficit over the lease term as an integral part of the total value from another entity without giving approximately conditions are fulfilled. lease expense. equal value in exchange. Two main types of transactions applicable to the Government reporting group are: Vested assets (c) Cash and cash equivalents Transfers (e.g. grants, donations, gifts and pledges) and Where a physical asset is gifted to or acquired by the Cash and cash equivalents include cash on hand, deposits taxes (including levies). Parent and Group for nil or nominal consideration, the held at call with banks and other short-term, highly liquid fair value of the asset received is recognised as revenue investments, with original maturities of three months Revenue from the Crown in the surplus or deficit. Such assets are recognised as or less that are readily convertible into known amounts Antarctica New Zealand is primarily funded through revenue when control over the asset is obtained. of cash and which are subject to an insignificant risk of revenue received from the Crown, which is restricted in its changes in value. use for the purpose of Antarctica New Zealand meeting its Revenue from exchange transactions objectives as specified in the Statement of Intent. Exchange transactions are transactions in which one entity (d) Debtors and other receivables receives assets or services, or has liabilities extinguished, Debtors and other receivables are initially measured at Revenue from the Crown is recognised as revenue and is and directly gives approximately equal value (primarily fair value and subsequently measured at amortised cost reported in the financial period to which it relates. in the form of cash, goods, services or use of assets) using the effective interest method, less any allowance to another entity in exchange. Examples of exchange for impairment. Debtors and other receivables issued Contributions/sponsorship revenues transactions are the purchase or sales of goods or services with duration less than 12 months are recognised at their These revenues are classified as non-exchange revenue or the lease of equipment at market rates. nominal value, unless the effect of discounting is material. due to their nature and are recognised as revenue at the Impairment of a receivable is established when there is point of entitlement. The fair value of Sponsorships has Interest objective evidence that the Parent or Group will not be been determined to be equivalent to the amounts due in Interest revenue is recognised using the effective interest able to collect amounts due according to the original the funding arrangements. Sponsorships are recognised rate method. terms of the receivable. immediately on receipt. Provision of services (e) Investments Grants and Donations Revenue derived through the provision of services to Bank term deposits Grants are classified as non-exchange revenue due third parties is recognised when earned and is reported Investments in bank term deposits are initially measured to their nature and are recognised as revenue at the in the financial period to which it relates. at the amount invested. After initial recognition, point of entitlement. The fair value of Grants has been investments in bank deposits are measured at amortised determined to be equivalent to the amounts due in the (b) Leases cost using the effective interest method, less any funding arrangements. Operating leases provision for impairment. Lease payments under an operating lease, where the
Annual Report 2017-2018 33 (f) Joint ventures transaction subsequently results in the recognition of a Where an asset is acquired at no cost or for a nominal The financial statements include Antarctica New Zealand’s non-financial asset or non-financial liability (e.g. where the consideration, it is recognised at fair value when control 25% interest in the jointly controlled Antarctic Drilling hedge relates to purchase of an asset in a foreign currenc y), over the asset is obtained. Project (ANDRILL). Antarctica New Zealand’s share of the the amount recognised directly in equity is included in assets and liabilities, revenue and expenses, and cash the initial cost of the asset or liability. Otherwise, gains Capital work in progress is not depreciated. The total cost flows of ANDRILL has been incorporated into the financial or losses are recognised in equity transfer to the surplus of a capital project is transferred to the relevant asset statements on a line-by-line basis using the proportionate or deficit in the same periods as when the hedged item class on its completion and then depreciated. method. affects the surplus or deficit (e.g. when the forecast cost occurs). Both effective and ineffective parts of the hedge Gains and losses on disposals are determined by (g) Derivative financial instruments, hedging activities and are recognised in the same area of the surplus or deficit as comparing the proceeds with the carrying amount of the foreign currency transactions the hedged item. asset. Gains and losses on disposals are included in the Antarctica New Zealand uses derivative financial surplus or deficit in the period in which the transaction instruments to hedge its foreign exchange risk arising When a hedging instrument expires or is sold, or when a occurs. from operational activities. hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time The carrying amounts of property, plant and equipment Derivative financial instruments are recognised both remains in equity and is recognised when the forecast are reviewed at least annually to determine if there is any initially and subsequently at fair value. They are reported transaction is ultimately recognised in the surplus or indication of impairment. Where an asset’s recoverable as either assets or liabilities depending on whether the deficit. When a forecast transaction is no longer expected amount is less than its carrying amount, it will be reported derivative is in a net gain or net loss position respectively. to occur, the cumulative gain or loss that was reported in at its recoverable amount and an impairment loss will Recognition of movements in the value of derivatives equity is transferred to the surplus or deficit. be recognised. Losses resulting from impairment are depends on whether the derivative is designated as a reported in the surplus or deficit. hedging instrument and, if so, the nature of the item being Transactions in foreign currencies are initially translated hedged. at the foreign exchange rate at the date of the transaction. (i) Depreciation Foreign exchange gains and losses resulting from the Depreciation is charged on a straight-line basis at rates Derivatives that are not designated as for hedge settlement of such transactions and from the translation calculated to allocate the cost or valuation of an item accounting are classified as held-for-trading financial of exchange rates of monetary assets and liabilities of property, plant and equipment, less any estimated instruments with fair value gains or losses recognised in denominated in foreign currencies at each period and are residual value, over its estimated useful life. Typically the the surplus or deficit. Such derivatives may be entered recognised in the surplus or deficit, except when deferred estimated useful lives of different classes of property, into for risk management purposes, although not formally in equity when hedge accounting is applied. plant and equipment are as follows: designated for hedge accounting. (h) Property, plant and equipment Buildings 40 years Where a derivative qualifies as a hedge of variability in Property, plant and equipment are shown at cost less any Clothing 10 years asset or liability cash flows (cash flow hedge), the effective accumulated depreciation and impairment losses, except Communications equipment 5 to 7 years part of any gain or loss on the derivative is recognised for land and the art collection, which are shown at cost Computer hardware 2 to 4 years in equity while the ineffective part is recognised in less impairment losses. Leasehold improvements 10 to 15 years the surplus or deficit. Where the hedge of a forecast Library collection 20 years
34 Antarctica New Zealand Office equipment 3 to 5 years (k) Impairment of property, plant and equipment and (l) Creditors and other payables Office furniture 3 to 5 years intangible assets Creditors and other payables are recognised initially at fair Plant and machinery 10 years Antarctica New Zealand does not hold any cash- value less transaction costs and subsequently measured Scott Base fitout 20 years generating assets. Assets are considered cash-generating at amortised cost using the effective interest rate method. Tents 10 years where their primary objective is to generate a commercial Creditors and other payables issued with duration of less Vehicles – Christchurch 7 years return. than 12 months are recognised at their nominal value. Vehicles – Scott Base 10 years Wind farm 15 to 50 years Non-cash generating assets (m) Employee entitlements Property, plant, and equipment and intangible assets Employee entitlements to be settled within 12 months are Leasehold improvements are depreciated over the held at cost that have a finite useful life are reviewed for reported at the amount expected to be paid and include unexpired period of the lease or the estimated useful lives impairment whenever events or changes in circumstances salaries and wages accrued up to balance date, annual of the improvements, whichever is the shorter. indicate that the carrying amount may not be recoverable. leave earned, but not yet taken at each reporting date and An impairment loss is recognised for the amount by which long service leave entitlements. (j) Intangible assets the asset's carrying amount exceeds its recoverable Acquired computer software licences are capitalised on service amount. The recoverable service amount is the (n) Superannuation schemes the basis of the costs incurred to acquire and bring to use higher of an asset's fair value less costs to sell and value in Obligations for contributions to Kiwisaver and the the specific software. use. Government Superannuation Fund are accounted for as defined contribution superannuation schemes and Intangible assets with finite lives are subsequently Value in use is determined using an approach based recognised as an expense in the surplus or deficit as recorded at cost less any amortisation and impairment. on either a depreciated replacement cost approach, incurred. Amortisation is charged to the surplus or deficit on a restoration cost approach, or service units approach. The straight-line basis over the useful life of the asset. Typically most appropriate approach used to measure value in use (o) Goods and Services Tax (GST) the estimated useful lives of these assets are as follows: depends on the nature of the impairment and availability All items in the financial statements are stated exclusive of of information. GST, except for receivables and payables, which are stated Computer software 3 to 5 years on a GST inclusive basis. Where GST is not recoverable as If an asset's carrying amount exceeds its recoverable input tax then it is recognised as part of the related asset The carrying amounts of intangible assets are reviewed service amount, the asset is regarded as impaired and or expense. at least annually to determine if there is any indication the carrying amount is written down to the recoverable of impairment. Where an asset’s recoverable amount amount. The total impairment loss is recognised in the The net amount of GST recoverable from, or payable to, is less than its carrying amount, it will be reported at surplus or deficit. the Inland Revenue Department (IRD) is included as part its recoverable amount and an impairment loss will of receivables or payables in the statement of financial be recognised. Losses resulting from impairment are The reversal of an impairment loss is recognised in the position. reported in the surplus or deficit. surplus or deficit.
Annual Report 2017-2018 35 The net GST paid to, or received from the IRD, including directors of Antarctica New Zealand. On this date it was the GST relating to investing and financing activities, is deemed that a majority of trustees on the Board provided classified as an operating cash flow in the statement of Antarctica New Zealand with the power to govern NZARI cash flows. and the ability to benefit from its activities. The value of NZARI transferred to the Group at this date has resulted Commitments and contingencies are disclosed exclusive in the formation of the Trustees’ Consolidation Reserve. of GST. Following the retirement of two trustees before the end of (p) Income tax the financial year, as at 30 June 2018 the three remaining Antarctica New Zealand is a public authority for the trustees are also directors of Antarctica New Zealand. purposes of income tax legislation and is exempt from income tax. Other reserves This reserve comprises the Intercontinental Flight Reserve Its subsidiary, New Zealand Antarctic Research Institute being funding provided by the Crown to Antarctica (NZARI), is registered as a charitable entity and is exempt New Zealand for intercontinental flights between from income tax. New Zealand and Antarctica.
(q) Equity (r) Budget figures Equity is measured as the difference between total assets The Parent budget figures are derived from the Statement and total liabilities. Equity is disaggregated and classified of Performance Expectations as approved by the Board into the following components: at the beginning of the reporting period. Subsequently subsidiary budget figures were added to the Group figures ■■ Taxpayers' funds for the period of consolidation from April – June 2018. The ■■ Trustees’ funds budget figures have been prepared in accordance with ■■ Other reserves PBE IPSAS, using accounting policies that are consistent with those adopted by the Parent and Group for the Taxpayers' funds preparation of the financial statements. This relates to Antarctica New Zealand's accumulated surplus or deficit since its formation, adjusted for (s) Critical accounting estimates and assumptions transfers to/from specific reserves. This also includes The preparation of financial statements in conformity Antarctica New Zealand's 25% share of ANDRILL's joint with PBE IPSAS requires judgements, estimates and venture funds. assumptions that affect the application of policies and reported amounts of assets and liabilities, revenue Trustees' funds and expenses. On 11 April 2018, Antarctica New Zealand was deemed to have control of the New Zealand Antarctic Research The estimates and associated assumptions are based Institute (NZARI), with three of its five trustees also being on historical experience and various other factors that 36 Antarctica New Zealand are believed to be reasonable under the circumstances. Contributions/Sponsorship/Grants and Donations Actual results may differ from these estimates. received The Parent and Group exercise judgement when The estimates and assumptions that have a significant risk recognising contributions, sponsorship, grants or of causing material adjustment to the carrying amounts of donation revenue to determine if conditions of these assets and liabilities within the next reporting period are revenue items have been satisfied. This judgement will be discussed below: based on the facts and circumstances that are evident for each agreement. Estimating the useful lives and residual values of property, plant and equipment (u) Comparatives At each reporting date, the useful lives and residual values When presentation or classification of items in the of property, plant and equipment are reviewed. Assessing financial statements is amended or accounting policies the appropriateness of useful life and residual value are changed voluntarily, comparative figures are re-stated estimates of property, plant and equipment requires a to ensure consistency with the current period unless it is number of factors to be considered such as the physical impracticable to do so. condition of the asset, expected period of use of the asset by Antarctica New Zealand, and expected disposal (v) Related parties proceeds from the future sale of the asset. The Parent and Group transacts with other Government- related entities on a regular basis, for example the An incorrect estimate of the useful life or residual value purchase of postage or electricity. These transactions will affect the depreciation expense recognised in the are conducted on an arm's length basis. Significant surplus or deficit, and carrying amount of the asset in the transactions are disclosed separately. Transactions statement of financial position. Antarctica New Zealand that are collectively, but not individually, significant are minimises the risk of this estimation uncertainty by: disclosed in aggregate as transactions from Government- related entities. ■■ Physical inspection of assets ■■ Asset replacement programs ■■ Review of second hand market prices for similar assets ■■ Analysis of prior asset sales
Antarctica New Zealand has not made significant changes to past assumptions concerning useful lives and residual values.
(t) Critical judgements in applying accounting policies Management has exercised the following critical judgements in applying accounting policies: Annual Report 2017-2018 37 STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSES for the year ended 30 June 2018
GROUP PARENT Note 2018 Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual ($000) ($000) ($000) ($000) ($000) ($000) Revenue from non-exchange transactions Crown revenue 1 20,853 20,853 20,819 20,853 20,853 20,819 Contributions/Sponsorship revenue 154 54 79 143 54 79 Grants and donations - 300 – – – – 21,007 21,207 20,898 20,996 20,907 20,898
Revenue from exchange transactions Interest revenue 252 218 163 248 214 163 Other operating revenue 344 350 367 344 349 367 Net gain on sale of property, plant & equipment 9 127 20 16 127 20 16 723 588 546 719 583 546
Total revenue 21,730 21,795 21,444 21,716 21,490 21,444
Expenditure Personnel costs 6,135 6,037 4,644 6,101 5,993 4,644 Operating expenses 2 11,015 11,548 8,295 10,793 11,490 8,295 Crown capital charge 3 2,216 2,200 2,152 2,216 2,200 2,152 Finance costs 4 – – (53) – – (53) Depreciation and amortisation expense 9/10 2,665 2,800 2,513 2,665 2,800 2,513
Total expenditure 22,031 22,585 17,551 21,775 22,483 17,551
Net operating surplus/(loss) 5 (301) (790) 3,893 (59) (993) 3,893
Explanations of significant variances against budget are detailed in Note 22.
The accompanying notes form part of these financial statements.
38 Antarctica New Zealand OTHER COMPREHENSIVE REVENUE AND EXPENSES for the year ended 30 June 2018
GROUP PARENT Note 2018 Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual ($000) ($000) ($000) ($000) ($000) ($000)
Net operating surplus/(loss) 5 (301) (790) 3,893 (59) (993) 3,893
Total comprehensive revenue and expenses for the year (301) (790) 3,893 (59) (993) 3,893
STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2018 GROUP PARENT Note 2018 Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual ($000) ($000) ($000) ($000) ($000) ($000)
Balance at 1 July 36,956 36,594 33,063 36,956 36,594 33,063
Total comprehensive revenue and expenses (301) (790) 3,893 (59) (993) 3,893 Trustees' acquired equity 1,107 734 – – – – Crown capital contribution 1,200 1,200 – 1,200 1,200 –
Balance at 30 June 5 38,962 37,738 36,956 38,097 36,801 36,956
Explanations of significant variances against budget are detailed in Note 22.
The accompanying notes form part of these financial statements.
Annual Report 2017-2018 39 STATEMENT OF FINANCIAL POSITION as at 30 June 2018 GROUP PARENT Note 2018 Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual ($000) ($000) ($000) ($000) ($000) ($000) Equity Taxpayers’ funds 5 35,097 33,801 33,956 35,097 33,801 33,956 Trustees’ funds 5 865 937 – – – – Other reserves 5 3,000 3,000 3,000 3,000 3,000 3,000
Total equity 38,962 37,738 36,956 38,097 36,801 36,956
Represented by:
Current assets
Cash and cash equivalents 6 3,943 2,033 2,773 3,417 1,628 2,773 Debtors and other receivables from exchange transactions 7 800 335 286 344 335 286 Investments 8 7,888 7,450 6,988 7,888 6,850 6,988 Prepayments 129 40 57 129 40 57
Total current assets 12,760 9,858 10,104 11,778 8,853 10,104
Non-current assets Property, plant and equipment 9 27,711 29,055 28,247 27,711 29,055 28,247 Intangible assets 10 312 320 266 312 320 266
Total non-current assets 28,023 29,375 28,513 28,023 29,375 28,513
Current liabilities Creditors and other payables 11 1,296 1,070 1,274 1,203 1,002 1,274 Employee entitlements 12 525 425 387 501 425 387
Total current liabilities 1,821 1,495 1,661 1,704 1,427 1,661
Net assets 38,962 37,738 36,956 38,097 36,801 36,956
Explanations of significant variances against budget are detailed in Note 22.
The accompanying notes form part of these financial statements.
40 Antarctica New Zealand STATEMENT OF CASH FLOWS for the year ended 30 June 2018 GROUP PARENT Note 2018 Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual ($000) ($000) ($000) ($000) ($000) ($000) Cash flows from operating activities Cash was provided from: Receipts from Crown revenue 20,853 20,853 20,819 20,853 20,853 20,819 Receipts from other revenue (exchange transactions) 233 350 374 233 350 374 Receipts from other revenue (non-exchange transactions) 168 739 79 143 54 79 Interest received 233 218 142 227 214 142
Total receipts 21,487 22,159 21,414 21,456 21,471 21,414
Cash was applied to: Payments to suppliers (10,863) (10,907) (8,188) (10,869) (10,850) (8,188) Payments to grant recipients (763) (587) – – – – Payments to employees (5,986) (6,150) (4,562) (5,971) (6,106) (4,562) Payments for Crown capital charge (2,216) (2,200) (2,152) (2,216) (2,200) (2,152) Goods and services tax (net) (130) – 82 (19) – 82
Total payments (19,958) (19,844) (14,820) (19,075) (19,156) (14,820)
Net cash from operating activities 1,529 2,316 6,594 2,381 2,315 6,594
Cash flows from investing activities Cash was provided from: Receipts from sale of property, plant and equipment 118 20 10 118 20 10 Trustees' funds 778 405 – – – –
Cash was applied to: Purchase of property, plant and equipment (2,038) (3,245) (2,864) (2,038) (3,245) (2,864) Purchase of intangible assets (117) (201) (124) (117) (201) (124) Acquisition of investments (300) – (2,338) (900) – (2,338)
Net cash from investing activities (1,559) (3,021) (5,316) (2,937) (3,426) (5,316)
Cash flows from financing activities
Annual Report 2017-2018 41 STATEMENT OF CASH FLOWS continued for the year ended 30 June 2018 GROUP PARENT Note 2018 Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual ($000) ($000) ($000) ($000) ($000) ($000)
Cash was provided from: Crown capital contribution 1,200 1,200 – 1,200 1,200 –
Net cash from financing activities 1,200 1,200 – 1,200 1,200 –
Net increase/(decrease) in cash and cash equivalents 1,170 495 1,278 644 89 1,278
Cash and cash equivalents at the beginning of the period 2,773 1,539 1,495 2,773 1,539 1,495
Cash and cash equivalents at the end of the period 6 3,943 2,034 2,773 3,417 1,628 2,773
The GST (net) component of operating activities reflects the net GST paid to and received from Inland Revenue. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.
Explanations of significant variances against budget are detailed in Note 22.
The accompanying notes form part of these financial statements.
42 Antarctica New Zealand NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2018
Note 1 Crown revenue Note 3 Crown capital charge
Antarctica New Zealand has been provided with funding from the Crown for Antarctica New Zealand pays a capital charge to the Crown on its taxpayers' the specific purposes of Antarctica New Zealand as set out in its founding funds as at 30 June and 31 December each year. The capital charge rate for legislation and the scope of the relevant government appropriations. In 2017 the year ended 30 June 2018 was 6.0% (2017 - June to Dec 2016 7.0%; Jan to a one off sum of $3 million was provided as funding for intercontinental June 2017 6.0%). flights between New Zealand and Antarctica. Apart from these restrictions, there are no unfulfilled conditions or contingencies attached to government Note 4 Finance costs funding (2017 - $3 million). GROUP PARENT 2018 2017 2018 2017 Actual Actual Actual Actual Note 2 Operating expenses ($000) ($000) ($000) ($000) GROUP PARENT Financial instruments recognised at fair value – (53) – (53) 2018 2017 2018 2017 Actual Actual Actual Actual Total finance costs – (53) – (53) ($000) ($000) ($000) ($000) Remuneration of auditor – Audit fees for financial statements audit 39 34 35 34 Note 5 Equity Directors’ remuneration (Note 18) 82 82 82 82 GROUP PARENT Trustees' remuneration (Note 18) 9 – – – 2018 2017 2018 2017 Rental and operating lease costs 517 420 517 420 Actual Actual Actual Actual Helicopter and fixed wing aircraft charter ($000) ($000) ($000) ($000) in Antarctica 2,392 1,740 2,392 1,740 Taxpayers’ funds Fuel consumed in Antarctica 456 534 456 534 Balance at 1 July 33,956 33,063 33,956 33,063 New Zealand airtraffic and airport charges 329 415 329 415 Net surplus/(loss) attributable to Taxpayers' funds (59) 3,893 (59) 3,893 New Zealand Defence Force accommodation Crown capital contribution (Note 23) 1,200 – 1,200 – and allowances 702 683 702 683 Transfer (to)/from Intercontinental flight reserve – (3,000) – (3,000) Data link between New Zealand and Antarctica 563 497 563 497 Food consumed in Antarctica 236 219 236 219 Balance at 30 June 35,097 33,956 35,097 33,956 Scott Base Redevelopment project (Note 23) 2,258 – 2,258 – Other operating expenses 3,432 3,671 3,223 3,671 Trustees' funds Balance at 1 July – – – – Total operating expenses 11,015 8,295 10,793 8,295 Trustees' Consolidation Reserve * 1,107 – – – Net surplus/(loss) attributable to Trustees' funds (242) – – – Explanations of significant variances against budget are detailed in note 22. Balance at 30 June 865 – – –
Annual Report 2017-2018 43 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS continued
Other reserves Note 6 Cash and cash equivalents Intercontinental flight reserve GROUP PARENT Balance at 1 July 3,000 – 3,000 – 2018 2017 2018 2017 Transfer from/(to) Taxpayers’ funds – 3,000 – 3,000 Actual Actual Actual Actual ($000) ($000) ($000) ($000) Balance at 30 June 3,000 3,000 3,000 3,000 Cash on hand and at bank 3,943 2,773 3,417 2,773 Cash equivalents – term deposits less than 3 months – – – – Total equity at 30 June 38,962 36,956 38,097 36,956 Total cash and cash equivalents 3,943 2,773 3,417 2,773 Taxpayers' funds at the reporting date include $212,000 (2017 - $159,000), attributable to Antarctica New Zealand's 25% share of the assets and liabilities of The carrying value of short term deposits with maturity dates of three months or the ANDRILL project (refer note 14). less approximates their fair value. The weighted average effective interest rate for term deposits is 0% (2017 – 0%). The Minister of Foreign Affairs approved the transfer of $3 million to Antarctica New Zealand to cover any commercial intercontinental flight requirements for the 2016/17 season with unused funds carried over for similar use in future years. Note 7 Debtors and other receivables GROUP PARENT * Trustees' Consolidation Reserve: On 11 April 2018, Antarctica New Zealand was 2018 2017 2018 2017 deemed to have control of New Zealand Antarctic Research Institute (NZARI), with Actual Actual Actual Actual three of five trustees appointed by Antarctica New Zealand. On this date it was ($000) ($000) ($000) ($000) deemed that a majority of Trustees on the Board provided Antarctica New Zealand Debtors and other receivables 737 243 281 243 with the power to govern NZARI and the ability to benefit from its activities. The less provision for impairment – – – – fair value of assets and liabilities of NZARI transferred to the Group at this date has Term deposit interest 63 43 63 43 resulted in the Trustees’ Consolidation Reserve of $1,107,000. Total debtors and other receivables 800 286 344 286 Assets Cash and cash equivalents 778 The carrying value of receivables approximates their fair value. Debtors and Other Receivables 385 Investments 600 The carrying amount of receivables that would otherwise be past due, but not Liabilities impaired, whose terms have been renegotiated is nil (2017 – nil). Creditors and Payables (656) Net Assets Acquired Consideration – Trustees' Consolidation Reserve 1,107
44 Antarctica New Zealand As at 30 June 2018 and 2017, all overdue receivables have been assessed for Note 8 Investments impairment and appropriate provisions applied, as detailed below: GROUP PARENT Group 2018 Actual 2017 Actual 2018 2017 2018 2017 Gross Impairment Net Gross Impairment Net Actual Actual Actual Actual ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Not past due 599 – 599 243 – 243 Current portion of term deposits 7,888 6,988 7,888 6,988 Past due 1 – 30 days 138 – 138 – – – Total Investments 7,888 6,988 7,888 6,988 Total 737 – 737 243 – 243 The carrying value of term deposits with maturity dates less than 12 months Parent 2018 Actual 2017 Actual approximates their fair value. The weighted average effective interest rate for term Gross Impairment Net Gross Impairment Net deposits is 3.34% (2017 – 3.48%). ($000) ($000) ($000) ($000) ($000) ($000)
Not past due 143 – 143 243 – 243 Past due 1 – 30 days 138 – 138 – – –
Total 281 – 281 243 – 243
The provision for impairment has been calculated based on expected losses for the Group or Parent's pool of debtors. Expected losses have been determined based on an analysis of losses in previous periods, and a review of specific debtors. All amounts past due at balance date have since been received in full.
Annual Report 2017-2018 45 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS continued
Note 9 Property, plant and equipment
Movement for each class of property, plant and equipment are as follows: GROUP AND PARENT 2018 Cost Accumulated depreciation and impairment losses Carrying amount Balance at Additions/ Balance at Balance at Depreciation Eliminated Impairment Balance at at 30 June 1 July 2017 Transfers Disposals 30 June 2018 1 July 2017 expense on disposal losses 30 June 2018 2018 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Buildings Scott Base 11,431 – – 11,431 3,984 365 – – 4,349 7,082 Land – – – – – – – – – – Leasehold improvements 690 29 – 719 387 54 – – 441 278 Communications equipment 422 53 (7) 468 377 22 (7) – 392 76 Plant and machinery 4,193 464 (1,382) 3,275 3,350 165 (1,079) (303) 2,133 1,143 Wind farm 12,448 – – 12,448 4,469 617 – – 5,086 7,362 Vehicles 5,558 1,411 (351) 6,618 3,281 424 (307) (44) 3,354 3,264 Computer hardware 1,561 164 (120) 1,604 1,160 222 (120) – 1,262 342 Scott Base fitout 12,164 63 – 12,227 5,426 522 – – 5,948 6,279 Office furniture 108 6 – 114 60 11 – – 71 44 Office equipment 116 24 – 140 97 9 – – 106 33 Clothing 1,116 6 – 1,122 795 103 – – 898 224 Tents 495 153 (42) 606 373 25 (42) – 357 250 Library collection 135 – – 135 135 – – – 135 – Art collection 350 2 – 352 – – – – – 352 Work in progress 1,354 (372) – 982 – – – – – 982
Total 52,141 2,003 (1,902) 52,242 23,894 2,539 (1,555) (347) 24,531 27,711
In 2018, Antarctica New Zealand disposed of two Hagglunds (vehicles) which were surplus to requirements for $45,000. Asset disposals include assets originally used at Cape Roberts in Antarctica at $34,000, and a 25% share of gain on disposal of assets in ANDRILL of $48,000. In 2017, Antarctica New Zealand disposed of 6x containers originally used at Cape Roberts in Antarctica $14,000, with the balance being sundry smaller items of plant.
Photo Jacob Anderson © Antarctica New Zealand (2018)
46 Antarctica New Zealand GROUP AND PARENT 2017 Cost Accumulated depreciation and impairment losses Carrying amount Balance at Additions/ Disposals Balance at Balance at Depreciation Eliminated Impairment Balance at at 30 June 1 July 2016 Transfers 30 June 2017 1 July 2016 expense on disposal losses 30 June 2017 2017 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Buildings Scott Base 8,075 3,356 – 11,431 3,689 295 – – 3,984 7,447 Land – – – – – – – – – – Leasehold improvements 642 48 – 690 323 64 – – 387 303 Communications equipment 401 21 – 422 356 21 – – 377 45 Plant and machinery 4,136 59 (2) 4,193 3,193 159 (2) – 3,350 843 Wind farm 12,448 – – 12,448 3,852 617 – – 4,469 7,979 Vehicles 4,718 840 – 5,558 2,985 296 – – 3,281 2,277 Computer hardware 1,443 118 – 1,561 930 230 – – 1,160 401 Scott Base fitout 11,161 1,003 – 12,164 4,947 479 – – 5,426 6,738 Office furniture 73 48 (13) 108 71 2 (13) – 60 48 Office equipment 114 14 (12) 116 99 10 (12) – 97 19 Clothing 1,111 5 – 1,116 690 105 – – 795 321 Tents 452 43 – 495 353 20 – – 373 122 Library collection 135 – – 135 135 – – – 135 – Art collection 350 – – 350 – – – – – 350 Work in progress 4,785 (3,431) – 1,354 – – – – – 1,354
Total 50,044 2,124 (27) 52,141 21,623 2,298 (27) - 23,894 28,247
Antarctica New Zealand owns buildings at Scott Base in Antarctica which are restricted for Government use. Legal title to the wind farm transferred from Meridian Energy Limited to Antarctica New Zealand upon final payment of the finance lease in May 2013. Antarctica New Zealand's property, plant and equipment are not pledged as security for liabilities.
Annual Report 2017-2018 47 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS continued
Note 10 Intangible assets
Movement for each class of intangible asset is as follows: GROUP AND PARENT 2018 Cost Accumulated amortisation and impairment losses Carrying amount Balance at Additions/ Disposals Balance at Balance at Amortisation Eliminated Impairment Balance at at 30 June 1 July 2017 Transfers 30 June 2018 1 July 2017 expense on disposal losses 30 June 2018 2018 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Acquired software 1,815 289 (135) 1,968 1,666 126 (135) – 1,657 312 Work in progress 117 (117) – – – – – – – –
Total 1,932 172 (135) 1,968 1,666 126 (135) – 1,657 312
GROUP AND PARENT 2017 Cost Accumulated amortisation and impairment losses Carrying amount Balance at Additions/ Disposals Balance at Balance at Amortisation Eliminated Impairment Balance at at 30 June 1 July 2016 Transfers 30 June 2017 1 July 2016 expense on disposal losses 30 June 2017 2017 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Acquired software 1,776 39 – 1,815 1,451 215 – – 1,666 149 Work in progress 32 85 – 117 – – – – – 117
Total 1,808 124 – 1,932 1,451 215 – – 1,666 266
There are no restrictions over the title of Antarctica New Zealand’s intangible assets, nor are any intangible assets pledged as security for liabilities.
48 Antarctica New Zealand Note 11 Creditors and other payables Note 14 Interest in joint venture
GROUP PARENT Included in the financial statements are the following items that represent the 2018 2017 2018 2017 Group and Parent's 25% interest in the assets and liabilities of the Antarctic Actual Actual Actual Actual drilling project - ANDRILL. ($000) ($000) ($000) ($000) GROUP PARENT Creditors 608 781 600 781 2018 2017 2018 2017 Revenue in advance 99 – 99 – Actual Actual Actual Actual Accrued expenses 589 494 504 494 ($000) ($000) ($000) ($000) Current assets Total creditors and other payables 1,296 1,274 1,203 1,274 Cash and cash equivalents 67 37 67 37 Debtors and other receivables 1 1 1 1 Creditors and other payables are non-interest bearing and are normally Investments 138 138 138 138 settled on terms of less than 60 days. As such, the carrying value of creditors and other payables approximates their fair value. Total current assets 206 176 206 176
Current liabilities Note 12 Employee entitlements Creditors and other payables 6 (17) 6 (17)) GROUP PARENT 2018 2017 2018 2017 Total liabilities 6 (17) 6 (17)) Actual Actual Actual Actual ($000) ($000) ($000) ($000) Net assets 212 159 212 159 Accrued salaries and wages 137 82 113 82 Long service leave 1 1 1 1 Revenue 53 5 53 5 Annual leave 387 304 387 304 Expenditure – – – – Operating surplus/(deficit) 53 5 53 5 Total employee entitlements 525 387 501 387 The financial statements of the ANDRILL joint venture for the year ended 30 June 2018 have been audited by Audit New Zealand on behalf of the Auditor General. Note 13 Derivative financial instruments
The notional principal amounts of outstanding forward exchange contracts at Note 15 Events after the balance date 30 June 2018 was nil (2017 – nil). The fair value of forward exchange contracts has been determined using a discounted cash flows valuation. There have been no significant events after balance date.
Annual Report 2017-2018 49 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS continued
Note 16 Related party transactions and key management Significant transactions with non-government-related entities personnel Antarctica New Zealand also transacts with other overseas Government agencies in order to operate cost effectively in Antarctica. These transactions are not Significant transactions with government-related entities considered related party transactions. Antarctica New Zealand is a wholly owned entity of the Crown. The Government influences the roles of Antarctica New Zealand as well as being its major source There were no related party transactions between Antarctica New Zealand and of revenue (2018 - $20,853,000 - refer Note 1) (2017 - $20,819,000). Ministers of the Crown.
Collectively, but not individually, significant, transactions with government- During the year Antarctica New Zealand purchased clothing at arm’s length on related entities normal commercial terms from Icebreaker New Zealand Limited. Rob Fyfe was In conducting its activities, Antarctica New Zealand is required to pay various the Chairman and a Director of the Icebreaker group of companies until 3 April taxes and levies (such as GST, FBT, PAYE and ACC levies) to the Crown and entities 2018. related to the Crown. The payment of these taxes and levies, other than income tax, is based on standard terms and conditions that apply to all tax and levy ANDRILL payers. Antarctica New Zealand is exempt from paying income tax. Antarctica New Zealand holds a 25% share in the ANDRILL joint venture and is the project operator. It is responsible for providing project management Antarctica New Zealand also purchases goods and services from entities services for ANDRILL including day-to-day project administration and financial controlled, significantly influenced or jointly controlled by the Crown. Purchases management of ANDRILL funds. from these government-related entities for the year ended 30 June 2018 totalled $880,417 (2017 - $933,532). These purchases are entered into on an arm's length During the year the following transactions were carried out wi th ANDRILL: basis and include marginal costs to the New Zealand Defence Force for defence PARENT force personnel operating in Antarctica, purchase of electricity from Meridian 2018 2017 Energy Ltd, air travel from Air New Zealand, air traffic control services from Actual Actual Airways, workplace injury cover from the Accident Compensation Corporation ($000) ($000) and postal services from New Zealand Post. Goods and services purchased and recharged to ANDRILL at cost 46 26 Antarctica New Zealand provides logistics support to New Zealand Universities Accounts payable to Antarctica New Zealand at 30 June – 2 and Crown Research Institutes on standard operating terms and conditions, and Accounts receivable from Antarctica New Zealand at 30 June 45 – subject to due review and approval. NEW ZEALAND ANTARCTIC RESEARCH INSTITUTE Sir Brian Roche was the Chief Executive of the New Zealand Post Group until April New Zealand Antarctic Research Institute (NZARI) is accounted for as a subsidiary 2017. Dame Therese Walsh is a Director of Air New Zealand, and Pro Chancellor of of Antarctica New Zealand and for accounting purposes is a 'controlled entity' Massey University. Dr Helen Anderson is a Director of NIWA, and Pro Chancellor under PBE IPSAS 20. of Victoria University.
50 Antarctica New Zealand During the year the following transactions were carried out with NZARI: Note 17 Employees’ remuneration PARENT 2018 2017 During the year the following number of employees received remuneration of Actual Actual $100,000 or more: ($000) ($000) GROUP PARENT Gifted goods and services 283 287 2018 2017 2018 2017 Accounts payable to Antarctica New Zealand at 30 June 27 – Actual Actual Actual Actual Accounts receivable from Antarctica New Zealand at 30 June – – Remuneration band No. of No. of employees employees Key management personnel compensation $100,000-$109,999 2 2 2 2 GROUP PARENT $110,000-$119,999 3 1 3 1 2018 2017 2018 2017 $120,000-$129,999 1 3 1 3 Actual Actual Actual Actual $130,000-$139,999 2 2 2 2 ($000) ($000) ($000) ($000) $140,000-$149,999 1 – 1 – Board Members $150,000-$159,999 1 2 1 2 Remuneration 82 82 82 82 $160,000-$169,999 2 – 2 – Trustees $170,000-$179,999 – – – – Remuneration 9 – – – $180,000-$189,999 – – – – Leadership Team $190,000-$199,999 – – – – Remuneration 1,346 1,172 1,319 1,172 $200,000-$319,999 – – – – $320,000-$329,999 – 1* – 1* Total key management personnel remuneration 1,437 1,254 1,401 1,254 $330,000-$339,999 1* – 1* –
Total full time equivalent personnel 8.95 7.44 8.71 7.44 * The Chief Executive’s remuneration is in the $330,000 – $339,999 band (2017: $320,000 - $329,999). Key management personnel include all Board Members, the Chief Executive, and members of the Management Team. No compensation payments relating to cessation of employment was made to any person ceasing to be an employee during the financial year (2017 - Nil).
Annual Report 2017-2018 51 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS continued
Note 18 Directors’ remuneration Note 19 Financial instruments
Board Members earned the following fees during the year: Nature of activities and management policies with respect to financial instruments. TERM GROUP PARENT Original Current 2018 2017 2018 2017 1 Foreign exchange risk Appointment Expiry Actual Actual Actual Actual Antarctica New Zealand undertakes transactions denominated in foreign currencies. Date Date $000 $000 $000 $000 As a result of these activities exposures in foreign currencies arise. It is the policy Board Member of Antarctica New Zealand to hedge significant foreign currency risks and it uses Sir Brian Roche (Chair) Aug 14 Dec 18 25.0 22.0 22.0 22.0 forward and spot foreign exchange contracts to manage this exposure. Dr. Helen Anderson Dec 15 Dec 18 11.5 10.0 10.0 10.0 In July 2017, Antarctica New Zealand entered into two forward exchange contracts Mr Rob Fyfe Feb 13 Dec 18 11.5 10.0 10.0 10.0 for US$650,000 and US$300,000. These are to hedge the costs of the 2017/2018 and Ms Sharon Hunter Dec 15 Nov 20 10.0 10.0 10.0 10.0 2018/19 season fuel and fixed wing costs. The first contract (US$650,000) matured Mr Phillip Melchior – – – 10.0 – 10.0 on 29 May 2018; the second contract (US$300,000) will mature on 29 May 2019 (2017 Mr Rob Morrison Dec 15 Dec 18 10.0 10.0 10.0 10.0 - US$676,000 matured 18 May 2017). Mr Tony O'Brien Nov 12 Dec 18 10.0 10.0 10.0 10.0 Dame Therese Walsh Jul 17 Dec 20 10.0 – 10.0 – 2 Credit risk Total Board Member remuneration 88.0 82.0 82.0 82.0 In the normal course of business Antarctica New Zealand incurs credit risk from trade debtors and financial institutions. There are no significant concentrations of Sir Brian Roche, Dr Helen Anderson and Rob Fyfe were appointed Trustees of the credit risk from trade debtors and exposures to them are monitored on a regular New Zealand Antarctic Research Institute on 3 July 2017. Sir Brian Roche was also basis. Antarctica New Zealand places its cash and short term investments with appointed as the Chair. high quality financial institutions which limits the amount of credit exposure. No collateral or security to support financial instruments is required due to the Antarctica New Zealand was deemed to obtain control of New Zealand Antarctic quality of the financial institutions dealt with. It is also Antarctica New Zealand's Research Institute on 11 April 2018. Trustees’ fees have been recognised from this policy to limit the amount of credit exposure to any one institution. date. 3 Interest rate risk No Board members received compensation or other benefits in relation to Interest rate risk is the risk that Antarctica New Zealand's return from a financial cessation (2017 - nil). instrument will fluctuate due to changes in market interest rates. Antarctica New Zealand's interest rate risk is limited to its bank deposits which are held on a short term basis, thus minimising any interest rate risk.
4 Liquidity risk Antarctica New Zealand structures its cash flows from the Crown in order to meet anticipated commitments. Antarctica New Zealand's policy is to maintain minimum liquid funds of $1,500,000 at all times. Financial liabilities consist of creditors and other payables of which maturity dates are less than 60 days.
52 Antarctica New Zealand Note 20 Commitments Note 21 Contingent assets and liabilities GROUP PARENT 2018 2017 2018 2017 Antarctica New Zealand and the Crown have a liability for site restoration Actual Actual Actual Actual costs at Scott Base should New Zealand withdraw from the Antarctic ($000) ($000) ($000) ($000) programme. Capital commitments Other property, plant and equipment 597 261 597 261 There are no other contingent assets or liabilities that the Antarctica New Zealand Group is aware of (2017 - nil). Total capital commitments 597 261 597 261
Non-cancellable operating lease commitments Note 22 Explanation of significant variances against budget Non-cancellable operating lease rentals are payable as follows: Explanations for significant variances from the Antarctica New Zealand Less than one year 490 384 490 384 Group’s budgeted figures are as follows: One to two years 476 384 476 384 Two to five years 93 464 93 464 Statement of comprehensive revenue and expenses Operating expenses Total non-cancellable operating lease Operating expenses are lower than budget due to the following offsetting commitments 1,059 1,232 1,059 1,232 items:
The non-cancellable operating lease commitment relates to: - Building rental is below budget as the new rental accommodation subsidy for Antarctic programs based in Christchurch has yet to ■■ Office and warehouse space in Christchurch. The current 3 year lease be fully implemented pending finalisation of negotiations between expired 16 September 2017. The first of two rights of renewal has been Antarctica New Zealand and the US Antarctic Program. exercised. Negotiations are in progress to finalise the lease renewal terms. - Fuel costs for the year were below budget primarily due to a material reduction in the price of fuel, combined with a favourable US/NZ ■■ Rental of a residential property in Christchurch for business use. The exchange rate compared to budget. current lease term expires on 7 February 2019. - Offsetting the above is additional spend on the Scott Base Redevelopment project (Note 23) due to: (i) classification of more expenditure as operating costs instead of capital costs, and (ii) the advance phasing of expenditure on the project.
Annual Report 2017-2018 53 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS continued
Statement of financial position Note 23 Scott Base Redevelopment Project Cash and cash equivalents In Budget 2017 Antarctica New Zealand received $6.14 million over two years to Combined cash and cash equivalents, and investments are higher than fund the work required to prepare a Detailed Business Case for the redevelopment budget primarily due to the lower operating deficit for the year, and lower of Scott Base. The first tranche of $2.4 million was received in the year ended 30 expenditure on property, plant and equipment as noted below. June 2018.
Contributing to the higher cash and cash equivalents sum is the movement GROUP PARENT in categorisation of the current portion of term deposits from Investments. 2018 2017 2018 2017 Actual Actual Actual Actual Property, plant and equipment ($000) ($000) ($000) ($000) Property, plant and equipment is under budget primarily due to the Scott Base Redevelopment Project Funding following items: Crown revenue (Note 1) 1,200 – 1,200 – Crown capital contribution (Note 5) 1,200 – 1,200 – - An underspend on the Scott Base Redevelopment project budget in the property, plant and equipment category due to expenditure Total Crown Project Funding 2,400 – 2,400 – classified as operating costs. - Deferred expenditure to the 2018/19 year for the deep field traverse Scott Base Redevelopment Project Expenditure capability project. Operating costs (Note 2) 2,258 – 2,258 – - Deferred expenditure for Extreme Cold Weather clothing due to the Capital work in progress (Note 9) 693 – 693 – project being re-scoped. Total Project Expenditure 2,951 – 2,951 –
Statement of cash flows Deficit carried forward against Receipts from other revenue (non-exchange) project funding in 2018/19 (551) – (551) – Receipts from other revenue (non-exchange) is lower than budget primarily due to the timing of sponsorship revenue in the Group subsidiary, received The amount of expenditure on the Scott Base Redevelopment project capitalised just after balance date. as an asset was calculated in accordance with accounting standard PBE IPSAS 17.
Purchase of property, plant and equipment Purchase of property, plant and equipment is under budget primarily due to classification of expenditure on the Scott Base Redevelopment project as operating costs, and the deferral of property, plant and equipment expenditure as noted above.
Acquisition of Investments Acquisition of investments is above budget due to higher cash balances held, adjusted by movements in the current portion of term deposits as noted above. 54 Antarctica New Zealand Photo Iain McGregor © Antarctica New Zealand (2018)
Annual Report 2017-2018 55 DIRECTORY
Corporate Office Websites Auditors International Antarctic www.antarcticanz.govt.nz Audit New Zealand Centre www.adam.antarcticanz.govt.nz 38 Orchard Road Solicitors Private Bag 4745 Social Media Chapman Tripp Christchurch Facebook.com/Antarctica.New.Zealand New Zealand 8140 Twitter.com/AntarcticaNZ Bankers Phone +64 3 358 0200 YouTube.com/AntarcticaNewZealand Westpac Banking Fax +64 3 358 0211 Instagram.com/Antarctica.NZ Corporation
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56 Antarctica New Zealand The Scott Base summer team 2017/18. Photo Jacob Bryant. © Antarctica New Zealand (2018) Antarctica New Zealand Private Bag 4745 International Antarctic Centre 38 Orchard Road, Christchurch, New Zealand Tel 64 3 358 0200 Fax 64 3 358 0211