Download the Destination Coromandel Annual Report 2014-2015

The importance of the visitor industry’s contribution to regional GDP is becoming more widely understood throughout New Zealand, and so too is the challenge to deliver visitor spend equal to, or above, the equivalent national measure for our region.

Destination Coromandel’s core business is destination marketing, and the focus continues to be directed towards the domestic market. At $250 million the domestic market makes up 80% of the visitor spend in our region. The Coromandel is also enjoying growth in international spend, beyond the national measure.

This year we launched a 10 year plan to grow visitor spend in line with national aspirations of Towards 2025. Product development, seasonality and quality were deemed the three points of focus that would help The Coromandel achieve its vision while also providing an efficient return on investment to our stakeholders.

From an organisational perspective, taking time to improve the structure and reporting requirements will allow more time in the market place to lead discussions with our stakeholders on issues that will have a true impact on our key performance indicators, and ultimately help drive visitation to The Coromandel.

In committing funds for the next three years our key stakeholders, Thames Coromandel District Council and Hauraki District Council, demonstrated confidence in results achieved and a desire to grow tourism’s economic contribution to The Coromandel.

Brent Page Chairman

CHAIRMAN’S report

DESTINATION COROMANDEL Annual Report 2014/15 page [ 1 ]

ANNUAL REPORT

2014 / 15

www.thecoromandel.com

DESTINATIONCOROMANDEL

The importance of the visitor industry’s contribution to regional GDP is becoming more widely understood throughout New Zealand. So too is the challenge to Destination Coromandel to deliver visitor spend for our region; equal to, or above, the equivalent national measure. Most other regions of New Zealand are doing their best to improve visitation and visitor spend so, the competition is fierce. Nonetheless, and although one of the least financially resourced Regional Tourism Organisations in New Zealand, Destination Coromandel’s dedicated and highly skilled team are proving that they can deliver results that are better than most other (often bigger), regions.

Destination marketing is the core business of Destination Coromandel. The fundamental purpose of Destination Coromandel Trust is to progressively grow the value of visitor spend in the marketing region known as The Coromandel. Increased visitor spend enhances and improves the economic, social, cultural and environmental well-being of the region. Destination Coromandel continues to focus its efforts on stimulating domestic market visitation to The Coromandel. At $250 million the domestic travel market currently makes up 80% of visitor spend in our region. In addition, The Coromandel is enjoying growth ahead of the national measure in international spend.

This year Destination Coromandel launched a 10 year plan to grow visitation and visitor spend in-line with the aspirations of the national document: Tourism - Towards 2025. Product development, seasonality and quality were deemed the three points of focus that would help The Coromandel achieve its vision while also providing an acceptable return on investment to stakeholders.

From a pragmatic and practical perspective, agreeing, with settlors, improvements to the reporting requirements of Destination Coromandel will allow our team to invest even more time in their roles and help drive visitation to The Coromandel.

In committing funds for the next three years the settlors in Destination Coromandel Trust (Thames Coromandel District Council and Hauraki District Council), have demonstrated both, confidence in results achieved to-date and, a desire to grow tourism’s economic contribution to The Coromandel.

The trustees and our team very much appreciate that support.

We are committed to making a measurable difference.

On behalf of the trustees of Destination Coromandel Trust.

John Sandford

TRUSTEE’S report


The Destination Coromandel team continues its quest to strengthen the platform from which we perform our core role – destination marketing. Visitor metrics reflect the tourism sector (for the area covering Hauraki District Council and Thames Coromandel District Council) is a growing contributor to our local economy, most recently valued at $314m, up 5.4% on the previous year.

With increases across all critical metrics (web traffic, commercial guest nights and visitor spend) and some impressive results from marketing initiatives this growth is likely to continue into the next reporting period.

Our investment in the domestic market continues to increase, particularly targeting visitation in the autumn shoulder season. Traffic to www.thecoromandel.com soared during the good for your soul campaign, contributing to the 56% increase (in web sessions) during the campaign period.

The domestic focus has not come at the expense of international results. Effective practices established in recent years have allowed The Coromandel to maintain a strong presence in the travel trade while also entering the consumer space in Australia. At $64m, international visitor spend for The Coromandel increased 23% on the previous year and was higher than results recorded pre global financial crisis.

Destination Coromandel’s digital platform continues to be the key weapon in web arsenal, with content being the ammunition. Our film series shot purely with GoPro cameras was licensed by this reputable worldwide entertainment brand. GoPro produced and released an edit that is nearing 200,000 views on Youtube alone.

Destination Coromandel embraced the challenge of administering the Whitianga i-SITE and relocating the Thames i-SITE to new premises as a separate contract for TCDC. i-SITEs contribute to The Coromandel good for your soul proposition we take to the market and the vision we are working towards;

To be rated as New Zealand’s number one, must visit destination

Destination Coromandel has strengthened its relationships with key stakeholders such as Thames Coromandel District Council, Hauraki District Council, Department of Conservation and iwi. Decisions made at this level can have a profound effect on traveller’s desire to visit, their experience once here and ultimately the results for The Coromandel visitor industry.

Hadley Dryden

MANAGER’S report


The domestic market remains the primary source of visitation to The Coromandel as indicated in the dominance of statistics reflected below with Auckland making up the majority in all measures.

Destination Coromandel established a domestic marketing campaign endeavouring to lengthen the popular summer holiday into the shoulder season, and this remains our primary focus.

The good for your soul campaign was introduced in 2013/2014 and recorded higher industry engagement than any previous marketing campaign for the region. The campaign incentivised businesses in The Coromandel to generate votes for their listing on www.thecoromandel.com. Businesses that featured in the top 50, top 5 and that were first in their category were profiled in campaign activity such as the NZ Herald, bus billboards, Facebook ads and the visitor guide.

The 2014/2015 campaign surpassed previous campaign engagement as demonstrated in the impressive online statistics for the campaign voting period.

Once the consumer voted for a particular business, they then had to vote for four other businesses to be eligible to win a trip – effectively planning their dream holiday to The Coromandel. Tourism businesses leveraged the campaign, and extended the reach beyond Destination Coromandel’s marketing dollar by developing a range of their own initiatives in an effort to gather votes and finish in the top 50. These included the offering of;

• Lifetime pass to their attraction• Facebook advertising• $500 cash prize incentives• Free dining experiences• Social media, email and website promotion• Information Centre gathered email registrations

As such a large driver of spend in The Coromandel the domestic market will continue as a major focus for Destination Coromandel.

OUR DOMESTIC market

page [ 6 ] DESTINATION COROMANDEL Annual Report 2014/15

Metric Percent Percent from of total Auckland

Visits to thecoromandel.com 75% 47%

Commercial guest nights (not including holiday home nights) 68% N/A

Regional Tourism Estimates of Visitor Spend 80% 28%

Promotion Period March/April 2015 Total campaign period

thecoromandel.com 66% increase 40% increase 56% increase

Commercial accommodation monitor 9.3% increase 5.15% increase 5.7% increase

While the domestic market provides most visitors to The Coromandel, international visitors play a significant role in the local tourism economy, both in visitor numbers and value, especially outside the peak season. Most of our international marketing activities are centred on uncovering business leads and developing relationships with all members of the travel trade distribution chain, to ensure our tourism operators have access to and are well represented in these channels. To achieve this we collaborate with up to eight other central North Island regions, depending on target market country. A smaller part of our budget is focussed on the Australian consumer market, reached by our collaboration in campaign activity with Tourism New Zealand.

Destination Coromandel attended Tourism Rendezvous New Zealand (TRENZ) in Rotorua, with three exhibitors from The Coromandel. TRENZ is New Zealand’s largest international tourism trade event, with approximately 350 travel buyers attending over three days. Destination Coromandel conducted 105, 15-minute appointments with buyer delegates selected by us for their relevance to our visitor markets. We saw an increased number of delegates from China (some of whom were seeking investment opportunities) and good overall engagement. Around the event we hosted 41 agents and media to The Coromandel to meet other operators and to have a first hand experience of what our region has to offer. As part of the Explore Central North Island marketing alliance, (ECNI), which co- hosted TRENZ this year, The Coromandel also received added exposure through participation and branding at official events and media presentations.

The annual eXplore Central North Island trade event targeting inbound tour operators attracted 74 tourism business exhibitors, with 14 from The Coromandel. eXplore continues to provide a key platform for export operators to connect directly with over 200 trade contacts. Taking advantage of our close proximity to the base of the Inbound Tour Operators (mostly in Auckland) this platform provided a starting point for further sales team training and familiarity tour opportunities (famils), which we delivered over the year.

A joint venture campaign with the Tourism New Zealand Australian Consumer Campaign targeted the east coast Australian visitor market with the overall business objective being to increase the value of international visitor arrivals to the North Island. Our investment was NZD$22,000 with a total campaign budget of NZD$1.13 million. The estimated advertising value for The Coromandel was AUD $98,000 representing 437% of market value delivered over investment. This does not include the benefit we received from filming an episode of Garden Gurus TV show featuring The Coromandel which was a great spin-off.

Direct travel trade activities with Tourism New Zealand have continued and as a result of our investment in the Explore Central North Island marketing collective, we achieved in-market representation at Kiwilink trade events in India and China. We also conducted face-to-face training with 400 selected travel agents from Australia, India and North America who came to New Zealand for famils and to complete their 100% Pure New Zealand Specialist certification.

INTERNATIONAL marketing


The emphasis on www.thecoromandel.com, as the central marketing tool for the region, continues to grow. Sessions (when a user is actively engaged with thecoromandel.com) reached 498,399, up 37% on the same period in the previous year. This significant increase was largely due to the success of the good for your soul domestic campaign. Equally impressive was the fact that more people were engaging on a deeper level as demonstrated by 42.91% bounce rate1 (reduced by -3.84% on the previous year).

Web analytics indicated that users were not content with specific information they were searching for on thecoromandel.com. As a result, Destination Coromandel developed a Must Do section (profiled on the top navigation bar) with comprehensive information that resulted in higher engagement and a lower bounce rate. The depth of content continued to improve in this period enriching the platform as can be seen in the Heritage section.

Mobile traffic has increased 112% in the 14/15 year. During the 14/15 year, tablet devices were up 36%, validating the move to make thecoromandel.com a responsive format (website adapts to any screen size). With 75% of web traffic from New Zealand (47% from Auckland alone) the affirmed focus on the domestic market will continue.

The Coromandel Facebook page fan base decreased by approximately 4000 likes due to Facebook cleansing their system. Inactive accounts were deleted. We now have over 43,500 likes. Engagement metrics demonstrate The Coromandel region is within the top 5 performing regions in New Zealand. An average post to The Coromandel Facebook page, would reach around 15,000 profiles (organic reach).

Destination Coromandel commissioned reputable NZ cinematographers to shoot The Coromandel on GoPro. After seeing the initial 6 episodes GoPro licensed the footage. They produced their own edit and released it in June 2015. Within days it had over 100,000 views on Youtube, thousands of likes and hundreds of comments. The footage has been repurposed and shared by other travel entities (e.g. Tourism New Zealand). Measurable views for the combined footage are in excess of 300,000. Views to date are all organic, largely off the back of GoPro’s episode shared via their Youtube channel. Paid advertising would have cost $51,000 to achieve the same amount of views. A motivator for filming solely on GoPro was the lure of GoPro sharing the content.

The footage will have a long shelf life and continue to promote The Coromandel for years to come. Worth noting is that the video content appeals to our domestic (and absentee) markets, but also niche audiences and free independent travellers regardless of place of residence and touches a wide range of the region’s key adventure attractions such as cycling, fishing, diving, surfing and hiking.

1 *Bounce rate measures users that arrive and leave straight away

DIGITAL focus


Because of a change in funding and governance outlined by the Thames Coromandel District Council (TCDC) in April 2013, the ownership and governance of the Whitianga i SITE Visitor Centre was dissolved from the Mercury Bay Businesses Association and handed over to Destination Coromandel as from the 1st July 2014.

It was planned from the onset to transition the Whitianga i-SITE on a business as usual basis. With the adoption of the Thames i-SITE due to take place in July 2015, a more collaborative and united approach was applied to the day to day operations with the aim of streamlining processes, sharing resources, consistent messaging, brand delivery and level of service. A four year service level agreement was established with TCDC for the continued operation of the i-SITE and administration and accounting functions were transitioned to Destination Coromandel over the course of the year.

For the 2014/2015 financial year overall Whitianga i-Site income was on target with commission revenue up 8.2%. Foot traffic was down 17% on the previous financial year from 85,000 to 71,000. While this has been a national trend over the last few years within the i-SITE network, we are waiting results from the national Deloittes Survey to see how this has tracked in 2014/2015.

A refit of the Whitianga i-Site centre was undertaken in August, which saw a change in layout to the public space and opening up the office kitchen area to allow for a shared staff room and office. The main counter was removed and a new smaller one installed to try and eliminate the barrier between staff and visitors. A $30,000 grant was allocated from TCDC for the renovations, however the costs were maintained within the annual funding and as a result the grant was transferred back to TCDC.

Technology is constantly changing the way our target audience is sourcing information, choosing their destination and planning and booking their holiday. This reflects the continued importance of digital technology in the travel industry and demonstrates a growing opportunity for the i-SITE’s to meet their visitor’s needs. An ipad was introduced as a mobile sales tool to encourage staff to engage with the customer in the shop front. While the concept works the technology isn’t easily compatible. We are now trialing a Surface Pro tablet in the Thames i-SITE in order to use the reservation and Point of Sale (POS) software on a tablet. The i-SITE booking engine, Bookit was integrated with IBIS, which is our reservation and POS software and as a result the centre transacted over $24,000 of bookings. These were all out-of-region accommodation bookings. Bookit has proved to be a valuable tool for the staff by way of real-time booking and increasing visitor spend.

The Eventfinda booking functionality was added in late June 2015. This provides us the ability to book nationwide and local events and enhance our visitor service proposition.

A family focused brochure was developed with the visions of engaging families in the activity options available throughout The Coromandel, while also building awareness of the region and the good for your soul brand. With the incorporation of local and regional specials exclusive to the i-SITE the ultimate goal was to establish a tool that increased bookings. Although that publication was well utilised by staff and visitors, we didn’t see a significant increase in special bookings.

i-SITE New Zealand has just announced a proposed change in brand, which will see the incorporation of the 100% Pure New Zealand brand in the i-SITE brand lock up. They also plan to introduce a 100% Pure New Zealand retail line exclusive to i-SITEs and increase marketing activity domestically, which we can expect to see rolled out in the next 12-18 months.

VISITOR INFORMATION centres


INDEX Page

ENTITY INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

STATEMENT OF FINANCIAL PERFORMANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

STATEMENT OF FINANCIAL POSITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

STATEMENT OF CASH FLOWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15

STATEMENT OF ACCOUNTING POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16-18

NOTES TO THE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 1 Council funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

2 Website, Advertising and Brochures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

3 Sale of goods and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

4 Employee related costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

5 Other expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

6 Income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

7 Bank accounts and cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

8 Debtors and prepayments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

9 Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

10 Property, plant, equipment and intangibles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

11 Creditors and accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

12 Employee costs payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

13 Loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

14 Accumulated Surpluses/deficits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

15 Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

16 Contingent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

17 Related-party transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

18 Trustee fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

19 Events after the balance date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

20 Explanation of major variances against budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

21 Significant adjustments arising on transition to the new PBE SFR-A standard . . . . . . 22

Financial Statements have been prepared by an independent accountant and are awaiting review from Audit NZ.

FINANCIAL statements


ENTITY INFORMATION FOR THE YEAR ENDED 30 JUNE 2015LEGAL NAMEDestination Coromandel Trust (“the Trust”).

TYPE OF ENTITY AND LEGAL bASISThe Trust is incorporated in New Zealand under the Charitable Trusts Act 1957. The Thames Coromandel District Council and the Hauraki District Council (“the Settlors”) intended that the Trust would not be a Council Controlled Organisation and the nature and intent of undertaking the Trust is that it would be a “small operation” that would not conduct a trading operation for the purposes of making a profit.

However as defined in Section 6 of the Local Government Act 2002 the Trust is a council-controlled organisation.

THE TRUST’S PURPOSE OR MISSIONThe Trust’s primary objective is to promote tourism and travel to benefit the people in the communities of The Coromandel.

It achieves this objective by promoting the region as a leading tourist and visitor destination.

STRUCTURE OF THE TRUST’S OPERATIONS, INCLUDING GOVERNANCE ARRANGEMENTSA Board of three Trustees oversee the governance of the Trust. A Manager is responsible for day-to-day operations and reporting to the Trustees, and eight other staff provide support to the Manager in delivering the Trust’s objectives. The Trustees are appointed by the Settlors.

MAIN SOURCES OF THE TRUST’S CASH AND RESOURCESOperating grants are the primary source of funding received from the Settlors to the Trust.

OTHER INFORMATIONThe trust deed outlines the Charitable Purposes of the Trust.a) Promoting and marketing the region as a leading visitor destinationb) Supporting, promoting and assisting in activities and projects which increase the opportunities

for employment in the tourism and visitor industries and as such contribute to the social development and well being of the communities within the region.

c) Supporting and benefiting communities by promoting and assisting in sustaining the “green image” of the region with the aim of having visitor activities aligned with this concept.

DESTINATION COROMANDEL trust



Notes Actual budget Actual 2015 2015 2014Revenue 1 Council funding 611,325 625,000 501,000

2 Website, Advertising & Brochures 157,622 159,880 121,098

3 Sales of goods and services 66,813 54,346 3,277

Interest revenue 4,678 2,660 3,965

Other revenue 2,161 5,000 28,174

Total revenue 842,598 846,886 657,514

Expenses4 Employee-related costs 355,898 359,747 204,221

Advertising and marketing costs 295,430 263,191 288,634

Lease expense 2,011 - -

10 Depreciation of property, plant, and equipment 9,800 20,554 15,224

Costs of providing goods and services 138,027 119,996 91,738

18 Trustee fees 31,764 35,475 33,307

Interest on bank overdraft 22 - 3

5 Other expenses 12,000 12,000 12,022

Total expenses 844,951 810,964 645,149

Surplus/(deficit) before tax -2,353 35,922 12,365

6 Income tax expense 1,544

Surplus/(deficit)aftertax -3,897 35,922 12,365

6 Reversal of Income tax provisions in 2012, 2013 & 2014 53,000

Adjusted Surplus funds 49,103 35,922 12,365

Explanations of major variances against budget are provided in note 20.

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2015



Notes Actual budget Actual 2015 2015 2014AssetsCurrent assets7 Bank accounts and cash 19,739 129,057 112,509

8 Debtors and prepayments 29,714 4,515 12,287

9 Inventory 7,530 10,528 884

Total current assets 56,983 144,099 125,680

Non-currentassetsProperty, plant, equipment and intangibles 32,404 10,886 31,441

Total non-current assets 32,404 10,886 31,441

Total assets 89,387 154,986 157,121

LiabilitiesCurrent liabilities7 Bank overdraft 2,051

11 Creditors and accrued expenses 81,373 157,467 195,525

12 Employee costs payable 19,684 24,422 24,422

14 Loans 28,882

Total current liabilities 103,109 181,889 248,828

Non-currentliabilitiesTotal non-current liabilities - - -

Total liabilities 103,109 181,889 248,828

Total assets less total liabilities -13,722 -26,903 -91,707

Trust equity14 Accumulated surpluses/deficits -13,722 -26,903 -62,825

Total Trust equity

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015

Notes Actual budget Actual 2015 2015 2014CashflowsfromoperatingactivitiesReceipts of council funding 611,325 715,000 501,000

Receipts of central government funding

Receipts from sale of goods and services 234,414 264,220 176,554

Interest, dividends, and other investment receipts 4,678 160 3,965

Receipts from other revenue

Payments to suppliers and employees -887,335 -858,585 -613,910

Interest paid -22 - 3

GST -13,236 -57,311 7,276

Net cash flow from operating activities -50,176 63,483 74,883

CashflowsfrominvestingandfinancingactivitiesPayments to acquire property, plant, and equipment -19,102 -

Repayment of loans -25,543 -25,543 -27,046

Net cash flow from investing and financing activities -44,645 -25,543 -27,046

Net increase/(decrease) in cash for the year -94,821 37,940 47,837

Add opening bank accounts and cash, including bank overdraft 112,509 112,509 64,672

Closing bank accounts and cash, including bank overdraft 17,688 150,449 112,509

Explanations of major variances against budget are provided in note 23.


STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015

STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2015ACCOUNTING POLICIES APPLIEDbASIS OF PREPARATIONThe Board has elected to apply PBE SFR-A (PS) Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) on the basis that the Trust does not have public accountability (as defined) and has total annual expenses of less than $2 million.All transactions in the financial statements are reported using the accrual basis of accounting.The financial statements are prepared on the assumption that the Trust will continue to operate in the foreseeable future.

GOODS AND SERVICES TAXThe Trust is registered for GST. All amounts in the financial statements are recorded exclusive of GST, except for debtors and creditors, which are stated inclusive of GST.

SIGNIFICANT ACCOUNTING POLICIES

RevenueGrants Council grants are recognised as revenue when the funding is received unless there is an obligation to return the funds if conditions of the grant are not met (“use or return condition”).If there is such an obligation, the grant is initially recorded as a liability and recognised as revenue when conditions of the grant are satisfied.Sale of goodsRevenue from the sale of goods is recognised when the goods are sold to the customer.Sale of servicesRevenue from the sale of services is recognised by reference to the stage of completion of the services delivered at balance date as a percentage of the total services to be provided.Donated assetsRevenue from donated assets is recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the value of the asset is readily obtainable and significant.Interest and dividend revenueInterest revenue is recorded as it is earned during the year.

Employee related costsWages, salaries, and annual leave are recorded as an expense as staff provide services and become entitled to wages, salaries, and leave entitlements.Performance payments are recorded when the employee is notified that the payment has been granted.Superannuation contributions are recorded as an expense as staff provide services.

Advertising, marketing, administration, overhead, and fundraising costsThese are expensed when the related service has been received.



Lease expenseLease payments are recognised as an expense on a straight-line basis over the lease term.

bank accounts and cashBank accounts and cash comprise cash on hand, cheque or savings accounts, and deposits held at call with banks.Bank overdrafts are presented as a current liability in the statement of financial position.

DebtorsDebtors are initially recorded at the amount owed. When it is likely the amount owed (or some portion) will not be collected, a provision for impairment is recognised and the loss is recorded as a bad debt expense.

InventoryInventory is initially recorded at cost. Goods held for sale are subsequently measured at the lower of cost and their selling price.Goods for use or distribution are subsequently measured at cost and written down if they become obsolete.

Property, plant, and equipmentProperty, plant, and equipment is recorded at cost, less accumulated depreciation and impairment losses.Depreciation is provided on a straight-line basis at rates that will write off the cost of the assets over their useful lives.The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:Furniture and fittings 5 years (20%)Computers and software 3 to 5 years (20% to 33%)Motor vehicles 5 years (20%)

Creditors and accrued expensesCreditors and accrued expenses are measured at the amount owed.

Employee costs payableA liability for employee costs payable is recognised when an employee has earned the entitlement.These include salaries and wages accrued up to balance date and annual leave earned but not yet taken at balance date.

LoansLoans are recognised at the amount borrowed from the lender. Loan balances include any interest accrued at year-end that has not yet been paid.


ProvisionsThe Trust recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation as a result of a past event, it is probable that expenditure will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Income taxTax expense is calculated using the taxes payable method. As a result, no allowance is made for deferred tax.Tax expense includes the current tax liability and adjustments to prior year tax liabilities.

BudgetfiguresThe budget figures are derived from the statement of intent as approved by the Board at the beginning of the financial year. The budget figures have been prepared in accordance with Tier 3 standards, using accounting policies that are consistent with those adopted by the Board in preparing these financial statements.

Tier 2 PbE Accounting Standards appliedThe Trust has not applied any Tier 2 Accounting Standards in preparing its financial statements.

CHANGES IN ACCOUNTING POLICIES AND TRANSITION TO THE NEW PbE SFR-A(PS)STANDARDThis is the first set of financial statements prepared using the new PBE SFR-A (PS) standard, and comparative information for the year ended 30 June 2014 has been restated to comply with the new standard. The significant adjustments arising on transition to the new standard are provided in note 21.



2015 2014

1 Council funding Grants 611,325 501,000

Sales

Total council funding 611,325 501,000

2 Website, Advertising & brochures Website Listings 67,377 60,418

Brochures & Advertising 90,245 60,679

Commissions 49,851 2,658

iSite Retail 15,716 -

Total Marketing Revenue 223,189 123,756

3 Other revenue Net gain on sale of property, plant, and equipment 150 -

Other revenue 3,257 28,793

Total other revenue 3,407 28,793

4 Employee related costs Salaries and wages 342,601 195,625

Employer superannuation contributions 9,620 5,743

Other employee related costs 3,677 2,853

Employee related costs 355,898 204,221

5 Other expenses Audit fees for the financial statement audit 12,000 12,000

Bad debt expense - 22

Other expenses

Total other expenses 12,000 12,022

6 Income tax Components of income tax expense

Current tax on Interest Earned 1,544 5672

Adjustments to current tax in prior years -53,000

Income tax expense adjusted -51,456

Income tax is calculated on Gross Interest Income. Income tax returns have been filed on behalf of the Trust in accordance with Destination Coromandel being a Charitable Trust incorporated pursuant to the Charitable Trust Act 1957 and undertaking a charitable purpose. Adjustments have been made in relation to income tax previously provided for.

Income tax expenseThe Trust is currently in the process of formally obtaining confirmation that the income tax exemption available pursuant to Section CW40 of the Income Tax Act 2007 applies. The Trust previously took an overtly and conservative position and accrued for income tax but believes this is no longer appropriate given the feedback from Inland Revenue following representations made by its tax advisors to Inland Revenue regarding the application of Section CW40 of the Income Tax Act 2007. The Trust has created a contingent liability in Note 16 to recognise that despite not being a requirement of the Income Tax Act 2007, the request for formal confirmation that Section CW 40 of the Income Tax Act 2007 applies to Destination Coromandel is pending from Inland Revenue.


NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015



2015 2014

7 bank accounts and cash Cash on hand 400

Cheque account 9,876 14,951

Savings account 9,463 97,558

Total bank accounts and cash 19,739 112,509

Bank overdrafts -2,051

Net bank accounts & cash for the purposes of the statement of cash flows 17,688

8 Debtors and prepayments Gross debtors 5,025 115

Provision for impairment

GST 17,789 12,172

Prepayments 6,900 -

Total debtors and prepayments 29,714 12,287

9 Inventory Publications held for distribution at no charge

Items held for sale 7,530 884

Total inventory 7,530 884

10 Property, plant, and equipment & Intangibles Furniture and fittings Carrying amount at 1 July 3,191 10,464 Additions 9,892 Disposals (net of accumulated depreciation) - - Depreciation expense 3,525 7,273

Carrying amount at 30 June 9,557 3,191

Computers and software Carrying amount at 1 July 587 1,059 Additions 4,210 Disposals (net of accumulated depreciation) - Depreciation expense 1,217 472

Carrying amount at 30 June 3,579 587

Motor vehicles Carrying amount at 1 July 22,747 30,142 Additions - Disposals (net of accumulated depreciation) - 7,396 Depreciation expense 7,396 -


Intangibles Carrying amount at 1 July 4,917 Additions - 5,000 Disposals (net of accumulated depreciation) - Depreciation expense 1,000 83



2015 2014

11 Creditors and accrued expenses Creditors 12,557 65,365

Provision for Audit 24,000 12,000

Provision for tax -49,722 54,598

Income in Advance 41,583 33,780

Accrued expenses 1,500 900

Total creditors and accrued expenses 14,057 66,265

12 Employee costs payable Accrued salaries (-Salaries in advance) and wages -2,091 4,588

Annual leave 21,775 19,834

Total employee costs payable 19,684 24,422

13 Loans Current portion

Advance from Thames Coromandel District Council 25,000

Finance Lease - Marac Finance 3,882

Total loans 0 28,882

The loans are unsecured.

14 Equity Accumulated surpluses

Balance at 1 July -62,825 -69,518

Surplus/(deficit) for the year -3,897 6,693

Adjustment to deficits from prior years 53,000

Balance at 30 June -13,722 -62,825

15 Commitments Commitment type Explanation and timing

Commitments to lease or rent assets

This represents the lease of Office space from the Thames Coromandel District Council’s War Memorial Civic Centre from August 2015. The Thames Visitor Information Centre will also transfer from Pollen Street to this site. Rental payable is $900 and $667 per month respectively.

16 Contingent liabilities The Trust has filed through its tax adviser, TaxTeam, income tax returns that encompass taxation

principally on interest revenue only. Should this be incorrect, payment of income tax of circa $53,000 may eventuate along, potentially, with additional penalties and interest imposed by Inland Revenue.

17 Related-partytransactions Related-party disclosures have not been made for transactions with related parties that are within a

normal supplier or client/recipient relationship on terms and conditions no more or less favourable than those that it is reasonable to expect the Trust would have adopted in dealing with the party at arm’s length in the same circumstances.

Related-party transactions significant to the Trust requiring disclosure

Brent Page is a trustee and was paid through OCOM Finance Limited for Trustee fees, mileage claims and other expenses. Brent has resigned as a Trustee from 30 June 2015.

John Sandford is a Trustee and was paid through John Sandford Limited for trustee fees, mileage claims and other expenses.

Graeme Osborne is a trustee and was paid through The New Zealand Company Limited for Trustee fees, mileage claims and other expenses. Graeme has resigned as a Trustee from 30 June 2015.

18 Trustee fees 2015 2014 Brent Page 13,750 14,587

John Sandford 9,000 10,337

Graeme Osborne 9,000 8,250

Total trustee fees 31,750 33,174

19 Events after the balance date The Trust has committed to operating the Thames Visitor Centre (iSite) from 1 July 2015.

The existing iSite staff are to continue employment through the Trust. The value of Accrued Holidays at 1/7/2015 is $3,588.

The inventory held by the i-Site has been acquired by the Trust for $1,862.

20 Explanations of major variances against budget Explanations for major variances from the Trust’s budgeted figures in the 30 June 2015 statement of

intent are as follows:

Statement of financial performance

Council funding reduced from Hauraki District Council -13,675

Shuttlerock social platform for collecting & sharing digital content -16,517

Event promotion material purchased -11,896

Financial Advisory services -11,900

Depreciation over provided 11,197

Statement of financial position and Statement of cash flows

There are no major variances against the prospective statement of cash flows and statement of financial position other than the impact of the major variances shown in this note.

21 SignificantadjustmentsarisingontransitiontothenewPBESFR-Astandard38 The main adjustments to the 30 June 2014 comparative statement of financial performance and

statement of financial position arising on the transition to the new PBE SFR-A standard are explained below:

Statement of financial position

Debtors and prepayments – Prepayments of $6,900 have been reclassified and aggregated with debtors.

Two new trustees, Scott Lee and Tony Coombe have been appointed to the Trust by the Settlors, replacing Brent Page and Graeme Osborne.



Documents

Download the Destination Coromandel Annual Report 2014-2015