Source
Resources/
Administration
Depreciation
Property Costs
Impairment
of Assets
Personnel Costs
Expenditure
The table below shows the profile of our expenditure for the past five years.
Personnel costs continue to increase relative to other expenditure types. This is due to a number of factors, with the most significant
contributors being general cost of living increases and employing staff with higher qualifications.
Resource and administration costs have continued to decrease as a result of management’s focus on entering procurement contracts
that provide the organisation with better value for money and keep variable costs under tight control.
Property costs have remained fairly stable for the past five years. This results from an ongoing commitment to ensuring that the
organisation maximises utilisation of existing space. Changes in our property portfolio between owned and leased sites have also
contributed to this result.
Even with a planned purchase of a leased site, depreciation costs have steadily decreased and stabilised over the past five years.
This is a result of only minor changes occurring in the property portfolio and the current capitalisation threshold for plant, property
and equipment.
Comprehensive Income
As a result of a revaluation exercise undertaken on all land and buildings owned by the organisation, Te Wānanga o Aotearoa
recognised a decrease in property revaluations of $2.9 million in 2012. The primary contributor to the decline in property values
was a building that was assessed as earthquake prone. This resulted in total comprehensive income for 2012 being $5 million.
Financial Position
Cash, cash equivalents and other financial assets in 2012 exceeded budget by $7.3 million. Te Wānanga o Aotearoa was $8.2 million
down on cash and $15.7 million up on short term deposits when compared with budget. This variance results from a higher than
anticipated surplus and opening cash position for the year.
The organisation had a positive working capital balance at the end of the year of $34.1 million. This is an increase of $0.3 million on
the 2011 result.
Overall, non-current assets increased by $4.9 million due to the purchase of plant, property and equipment, particularly the
acquisition of the Raroera site in Hamilton. This result was partly offset by the loss on property revaluations.
Eight programmes were developed and capitalised during the year along with the purchase of software at a total cost of $1.4
million. As a result of amortisation and impairment there was little movement over the year in intangible assets.
Net assets as at year end are now $138.8 million – an increase of $4.9 million on 2011.
Cash Flow
The strong closing cash position for the year shows the result of a focused approach to maximising our earnings from surplus cash.
During 2012, Te Wānanga o Aotearoa achieved interest revenue of $3.3 million, $0.2 million below the amount received in 2011.
This result was achieved by investing in investment-rated trading banks for varying terms within our credit risk criteria. The average
interest rate for cash and current financial assets in 2012 was 5.00%. This is an increase of 0.90% from the 2011 result.
During 2012, cash and cash equivalents (both short and long term) decreased from $60 million to $58 million. The net surplus for
the year was $7.9 million; however, when non-cash items are removed, the net operating inflow of cash to the organisation was
$14.0 million.
Te Wānanga o Aotearoa had a net cash outflow of $19 million on investing activities. This expenditure relates mainly to property,
plant and equipment, and programme development. Te Wānanga o Aotearoa developed and capitalised eight programmes in
2012, compared with twelve in 2011. The concentration in 2012, as was the case in previous years, on property, plant and
equipment has seen the completion of major improvements on many of our large sites and an acquisition of the Raroera site
in Hamilton.
te manu
...ka rere
2012
59%
26%
9%
5%
1%
2011
57%
29%
8%
5%
1%
2010
55%
31%
8%
5%
1%
2009
52%
34%
8%
6%
-
2008
52%
32%
8%
7%
1%
Annual report 2012
67
