VIN INC ANNUAL REPORT

20142015VIN INC ANNUAL REPORT

VIN INC ANNUAL REPORT 2014/2015

Annual general meeting agenda

10 SEPTEMBER 2015

WelcomePresentApologiesMinutes of Previous AGMChair’s ReportFinancial ReportChanges to VIN Inc. constitutionAppointment of AuditorsAppointment of Directors/Chair

General Business

VIN INC Board of Directors

AS AT 30 JUNE 2015

Deborah Gray, Chair David Perks Tracy Johnston Geoff Ensor Graham Brownrigg

Katherine Lorenzo

VIN INC Executive

AS AT 30 JUNE 2015

Paul Yeo, Executive Manager & Board Secretary Angela Stuart, Administrator

01


Kia Ora

Our Strategic Plan is nearing the end of its lifespan and early next year we will be

starting to look at what our goals might be for the 2017-2020 period and beyond.

Before that we still have work to do to achieve our current desired outcomes.

Our 2014-2015 Annual Business Plan took further strides towards meeting our

strategy and this annual report, for the second year running, provides detailed

performance results that indicate what we have accomplished and what still

needs to be done.

Our key themes ‘targeting for value’, ‘productivity for profit’, ‘member

connectivity’ and ‘insight’, are all closely aligned to the strategies in the national

Tourism 2025 growth framework.

2014-15 ends with a network of 78 full member and 3 satellite i-SITEs who have

generally experienced a very positive year with strong growth in international

arrivals and a vibrant domestic market. Productivity in the past year has been

enhanced by strong take-up of the Bookit accommodation booking tool that has

enabled many i-SITEs to boost their sales in this area and provide visitors with

more options and speedier service.

An exciting pilot is underway using Customer Radar to enable our customers to

provide managers with real time feedback on their service. Benchmarking across

the network with both this information and measuring and sharing other metrics

is helping us all to identify opportunities and strive for better performance.

Investment in technology such as Bookit and Customer Radar at a national level

is one way that individual i-SITEs can benefit from membership in the network.

New research to be released at this year’s conference will clearly show the

wider regional economic benefits derived from i-SITEs and will demonstrate

to local government and tourism businesses that i-SITEs shouldn’t be judged

on their bottom line alone. As a network we’ve always known that we influence

visitors travel habits and spending – this report now quantifies exactly how

much this ‘invisible’ influence is worth.

The coming year looks even more positive with strong international visitor

growth predicted which provides us with an ideal opportunity to deliver the best

possible customer experiences.

Nga mihi

Deborah Gray

Chair VIN INC

It is my pleasure to present this 2014/2015 Annual Report. This

report is coming to you on the eve of the 2015 Annual Conference

in Whangarei where we will focus on continuing to deliver on our

2013-2016 Strategic Plan with the conference theme Enhancing

Customer Experiences.

02


The 2014-2015 Annual Business Plan has been delivered in the context of a three year Strategic Plan. This plan was adjusted in June 2014 to adapt new Key Theme titles to better align with the Tourism 2025 national tourism framework.

i-SITE Year in review

Productivity for profit Member connectivityTarget for value Insight

i-SITE NEw ZEALANd STRATEgIC PLAN // 2013-2016

VISION // To be a world leading official information and booking network, delivered on the ground and virtually by driving value through outstanding visitor experience.

MISSION // To operate i-SITE NZ as an innovative business which delivers value to member i-SITEs.

GOAL // The i-SITE network becomes more viable by:

> Helping more international and domestic customers

> Distributing more product for the industry

> Containing or reducing the local government investment required to underwrite the network.

KEY THEMES //

Grow our profile through partnership brand marketing:

> Refine the i-SITE brand

> Leverage Tourism NZ for brand marketing

> Increase brand awareness domestically

> Immerse i-SITEs in digital promotion and information provision

> Increase provision of free Wifi throughout network.

Boost network productivity:

> Re-focus network training

> Improve booking and information systems

> Foster more productive networking

> Develop and share best practice resources

> Grow margin and new revenue streams.

Adequately resource i-SITE NZ and review rules to empower members:

> Strong staffing resource in Tourism NZ

> Membership fees inflation indexed

> Revise membership criteria to reduce compliance costs

> Encourage regional integration

> Strengthen partnerships with DOC, Qualmark and Maori product.

Increase i-SITE business intelligence and demonstrate value to our stakeholders:

> Invest in more robust monitors of i-SITE economic impacts

> Plan and deliver a local government and industry advocacy programme

> Engage industry support for sustainable commission booking models.

03

This report covers VIN Inc’s (trading as i-SITE New Zealand) service performance for the year ending 30 June 2015 against the forecast

statement of activities, performance measures and standards set out in VIN Inc’s Annual Business Plan 2014-2015.

VIN Inc is a controlled entity of Tourism New Zealand, governed by a Board of Directors. The entity is the owner of the i-SITE brand and livery.

Tourism New Zealand provides staff, support services, business systems and marketing to raise the profile of the i-SITE network.

i-SITE New Zealand has established membership standards and requirements that individual centres must achieve to use the i-SITE brand,

and become a part of the network of centres. These standards are enforced by site inspections of the centres by Qualmark assessors.

i-SITE New Zealand has identified four strategic outcomes that will result from achieving the vision, mission and goal:

Partnership brand marketing will grow our profile

i-SITE New Zealand will increase the visibility of the Network both online and in traditional media primarily around international gateways to ensure that more visitors are influenced by i-SITEs and that economic value is delivered to the visitor sector.

Network productivity will be boosted

The i-SITE Network has a proven influence in encouraging visitors to do more during their New Zealand holiday. i-SITE New Zealand will provide training and a quality assessment programme to increase the value derived from visitors and improve overall satisfaction of visitors that use i-SITEs. This will extend to the recommendation of experiences that, wherever possible, are based on the Qualmark promise. i-SITE New Zealand will also provide member communications, networking opportunities and administrative support to enable members to deliver the best service offerings.

Membership of the network will be enhanced through resourcing i-SITE New Zealand and reviewing our rules and criteria

Tourism New Zealand and members will adequately resource i-SITE New Zealand, enabling it to lead the network and set membership rules and criteria that reduces compliance costs and improves standards leading to greater efficiencies.

Increased i-SITE business intelligence will demonstrate value to our stakeholders

i-SITEs’ substantial connection with visitors, and the geographical reach of the Network, provides significant opportunities for the tourism industry. i-SITE New Zealand will manage relationships and demonstrate value to Local Government and other owners to maintain their major investment in i-SITEs.

// OUTCOME 1 // OUTCOME 3

// OUTCOME 2

// OUTCOME 4

STATEMENT Of SERVICE PERfORMANCE PAGE 01


04

Output Class 3: Membership of the network will be enhanced through resourcing i-SITE New Zealand and reviewing our rules and criteria (Page 9 VIN Inc Annual Business Plan 2014/15)

TargeT Performance STaTUS

i-SITE users have a high level of satisfaction with customer service received in an i-SITE: • 100% of i-SITEs maintain their Qualmark

endorsement throughout the year • New online customer satisfaction

system developed.

Full year result: During 2014/2015 all i-SITEs were assessed against network membership standards and retained their quality assurance status.

A new customer survey project was approved by the VIN Inc Board in November 2014, project has been implemented and is currently underway.

Achieved

Output Class 4: Increased i-SITE business intelligence will demonstrate value to our stakeholders (Page 13 VIN Inc Annual Business Plan 2014/15)


Visitors are educated on areas of safety and personal responsibility: • All i-SITEs provided with and display

public safety promotional material

Full year result: As/when received promotional materials (including brochures and posters) were made available to all i-SITEs to display in their centres. Any information received was posted to the extranet (Yammer).

Achieved


Visitors are educated to abide by freedom camping rules • All i-SITEs aware of regional freedom camping

rules and display promotional material

Full year result: As/when received promotional materials (including brochures and posters) were made available to all i-SITEs to display in their centres. Any information received was posted to the extranet (Yammer).

Achieved

Output Class 1: Partnership brand marketing will grow our profile (Page 4 VIN Inc Annual Business Plan 2014/15)


Prompted awareness of the i-SITE brand by international visitors increases to 60%

Full year result: 55% YE Mar-15. (60% QE Mar-15).Measurement sourced from International Visitor Survey. Previous YE unavailable due to changes.

Partially achieved


Percentage of international visitors using i-SITEs increases to 45%

Full year result: 42% YE Mar-15. (45% QE Mar-15). Measurement sourced from International Visitor Survey. Previous YE unavailable due to changes.

Partially achieved


Satisfaction of overall tourism experience by i-SITE users maintained at or above 90% and above that of non-users

Full year result: 91% of users YE Mar-15 – 89% for non-users. (93% vs. 91% QE Mar-15). Measurement sourced from International Visitor Survey. Previous YE unavailable due to changes.

Partially achieved

Output Class 2: Network productivity will be boosted (Page 6 VIN Inc Annual Business Plan 2014/15)


Percentage of international visitors who were influenced in their decision making by i-SITEs increases to 72%

Full year result: 63% YE Mar-15. (60% QE Mar-15). Previous Measurement sourced from International Visitor Survey. Previous YE unavailable due to changes.

Partially achieved


Percentage of international visitors who use i-SITEs making bookings increases to 50%


Partially achieved


Satisfaction of overall i-SITE experience for international visitors maintained at 87% or above


Partially achieved

Output Class PerformanceIn 2014/2015, i-SITE New Zealand delivered the following four categories of output classes:

STATEMENT Of SERVICE PERfORMANCE PAGE 02


Audit reportTo the readers of The Visitor Information Network Inc. financial satements and non-financial performance informationfOR ThE yEAR ENdEd 30 JUNE 2015

05

Unqualified Opinion

In our opinion the financial statements on pages 3 to 10:

> comply with generally accepted accounting practice in

New Zealand; and

> fairly reflect VIN Inc’s:

- financial position as at 30 June 2015; and

- financial performance and cash flows for the year

ended on that date.

> the non-financial performance information of VIN Inc

on pages 1 to 2:


New Zealand; and

> fairly reflects VIN Inc’s service performance and

outcomes for the year ended 30 June including each

class of outputs:

- its service performance compared with its forecasts in

the statement of forecast service performance at the

start of the financial years.

Our audit was completed on 4 August 2015. This is the

date at which our opinion is expressed.

The basis of the opinion is explained below. In addition,

we outline the responsibilities of the Board of Directors

and the Auditor, and we explain our independence.

Basis of Opinion

We carried out our audit in accordance with the Auditor-

General’s Auditing Standards, which incorporate the

International Standards on Auditing (New Zealand).

Those standards require that we comply with ethical

requirements and plan and carry out our audit to obtain

reasonable assurance about whether the financial

statements and non-financial performance information

are free from material misstatement.

Material misstatements are differences or omissions of

amounts and disclosures that, in our judgement, are

likely to influence readers’ overall understanding of the

financial statements and non-financial performance

information. If we had found material misstatements that

were not corrected, we would have referred to them in

our opinion.

An audit involves carrying out procedures to obtain audit

evidence about the amounts and disclosures in the

financial statements. The procedures selected depend

The Auditor-General is the auditor of Visitor Information Network Incorporated (“VIN Inc.”). The Auditor-

General has appointed me, Michael Rania, using the staff and resources of BDO Wellington, to carry out the

audit of the financial statements and non-financial performance information of VIN Inc. on her behalf.

We have audited:

- the financial statements of VIN Inc. on pages 3 to 10 that comprise the statement of financial position as at

30 June 2015, the statement of financial performance, and statement of changes in equity and statement

of cash flows for the year ended on that date and notes to the financial statements that include accounting

policies and other explanatory information; and

- the non-financial performance information of VIN Inc. that comprises the statement of service performance

and the report about outcomes on pages 1 to 2.

AUdIT REPORT PAGE 01


06

on our judgement, including our assessment of risks

of material misstatement of the financial statements

whether due to fraud or error. In making those risk

assessments, we consider internal control relevant to

VIN Inc’s preparation of the financial statements and

non-financial performance information that fairly reflect

the matters to which they relate. We consider internal

control in order to design audit procedures that are

appropriate in the circumstances but not for the purpose

of expressing an opinion on the effectiveness of VIN Inc’s

internal control.

An audit involves evaluating:

> the appropriateness of accounting policies used and

whether they have been consistently applied;

> the reasonableness of the significant accounting

estimates and judgements made by the Board;

> The appropriateness of the reported non-financial

performance information within VIN’s framework for

reporting performance;

> the adequacy of all disclosures in the financial

statements and non-financial performance

information; and

> the overall presentation of the financial statements and

non-financial performance information.

We did not examine every transaction, nor do we

guarantee complete accuracy of the financial statements

and non-financial performance information.

We have obtained all the information and explanations

we have required. We believe we have obtained sufficient

and appropriate audit evidence to provide a basis for our

audit opinion.

RESpONSIBIlITIES Of ThE BOARD Of DIREcTOR’S

AND ThE AUDITOR

Responsibilities of the Board

The Board is responsible for preparing financial

statements that:


New Zealand;

> fairly reflect VIN Inc’s financial position and financial

performance and cash flows; and

> fairly reflect its service performance and outcomes.

The Board is also responsible for such internal control

as it determines is necessary to enable the preparation

of financial statements and non-financial performance

information that are free from material misstatement,

whether due to fraud or error. The board is also

responsible for the publication of the financial statements

and non-financial performance information, whether in

printed or electronic form.

The Board’s responsibilities arise from the Incorporated

Societies Act 1908.

Responsibilities of the Auditor

We are responsible for expressing an independent

opinion on the financial statements and non-financial

performance information and reporting that opinion to

you based on our audit. Our responsibility arises from

section 15 of the Public Audit Act 2001 and the Crown

Entities Act 2004.

Independence

When carrying out the audit, we followed the

independence requirements of the Auditor- General,

which incorporate the independence requirements of the

External Reporting Board.

Other than in our capacity as auditor, our firm carries out

annual tax compliance services for VIN Inc. We have no

other relationship with or interests in VIN Inc.

Michael Rania

BDO Wellington

On behalf of the Auditor-General

Wellington, New Zealand



VIN INC financial statementsfOR ThE yEAR ENdEd 30 JUNE 2015

07

notes 2015 2014

$ $

cUrrenT aSSeTS

Cash 146,330 201,415

Receivables from exchange transactions 10,150 8,387

Accrued Conference Income 22,007 19,389

GST Receivable 6,673 -

Prepayments 111 2,227

Total current Assets 185,270 231,418

non-cUrrenT aSSeTS InTangIBLe aSSeTS

Public Campaign Website 4 - -

BookIT Software 4 47,358 54,000

Total Non-current Assets 47,358 54,000

Total Assets 232,628 285,418

cUrrenT LIaBILITIeS

Trade Payables 2,842 2,442

Other Payables 12,005 11,474

GST Payable - 5,891

Withholding Tax - 1,732

Revenue Invoiced in Advance 19,680 55,890

Total current liabilities 34,527 77,428

Total Net Assets/(liabilities) 198,101 207,990

StAtEmEnt of finAnciAl PoSitionaS aT 30 JUne 2015

2015 2014

$ $

neT SUrPLUS/ (DefIcIT) for The yearT

Operations 65,505 98,512

Conference (18,305) (18,993)

Training (57,089) (46,001)

(9,889) 33,518

Opening Equity brought forward 207,990 174,472

closing Equity 198,101 207,990

StAtEmEnt of chAnGES in Equityfor The year enDeD 30 JUne 2015

The notes and accounting policies on pages 7 to 10 form part and are to be read in conjunction

with these financial statements.



VIN INC financial statementsfOR ThE yEAR ENdEd 30 JUNE 2015

08

StAtEmEnt of comPREhEnSiVE REVEnuE AnD EXPEnSE - oPERAtionSfor The year enDeD 30 JUne 2015




notes 2015 2014

$ $

reVenUe from non-eXchange TranSacTIonS

Tourism NZ Grants 5 250,000 250,000

Tourism NZ In kind Grants 5 160,514 153,316

reVenUe from eXchange TranSacTIonS

Membership Subscriptions 157,006 159,450

NZ Post Income 86,085 12,196

Sale of Uniforms and Products 12,089

Interest 510 184

Total Revenue 666,204 575,147

eXPenSe

Badge Flags & Uniform Purchases:

Opening Stock - 7,211

Plus Purchases 12,147 4,543

Less Closing Stock - -

12,147 11,754

Marketing, Advertising & Campaigns 163,635 168,269

Events 7,195 7,606

Collateral Production & Design 32,717 9,988

Salaries 5 122,879 122,553

I-Site support expenses 5 37,634 30,763

Quality Assessment 40,700 32,400

Surveys & Research 60,419 26,500

Technology, Website & Extranet costs 3,768 5,779

Stocklink 3,040 3,142

Board Expenses 5,075 1,939

NZ Post - Admin support 82,315 9,598

Amortisation Expense 11,262 2,386

Loss on disposal of intangible assets - 17,633

Audit & Tax fees 3 10,376 8,965

Legal fees 6,915 16,581

Other expenses 623 779

Total Expense 600,699 476,635

Net Surplus 65,505 98,512


StAtEmEnt of comPREhEnSiVE REVEnuE AnD EXPEnSE - confEREncEfor The year enDeD 30 JUne 2015

2015 2014

$ $


Service IQ grant 18,203 16,756

Trainees Fees 30,823 24,500


eXPenSe

Service IQ expense 5,374 4,353

Co-ordinator 44,004 40,542

Other training expenses 56,737 42,363


Net Deficit (57,089) (46,001)

StAtEmEnt of comPREhEnSiVE REVEnuE AnD EXPEnSE - tRAininGfor The year enDeD 30 JUne 2015

09




2015 2014

$ $


Sponsorship 34,000 28,000

Registrations 62,908 48,345


eXPenSe

Hosting expenses 48,808 50,109

Speakers 5,127 12,983

Board expenses 3,034 3,923

Contractor wages 12,777 10,365

General expenses 45,468 17,957

Total Expense 115,213 95,338

Net Deficit (18,305) (18,993)


10

StAtEmEnt of cASh floWSfor The year enDeD 30 JUne 2015




notes 2015 2014

$ $

caSh fLoWS from oPeraTIng acTIVITIeS

Crown revenue 250,000 375,000

Interest received 510 184

Other revenue from exchange transactions 359,498 347,598

Payments to suppliers (647,908) (505,333)

Goods and services tax (net) (12,565) (6,365)

Net cashflow from operating activities 8 (50,465) 223,815

caSh fLoWS from InVeSTIng acTIVITIeS

Sale of property plant and equipment - -

Purchase of property plant and equipment (4,620) (54,000)

Net cashflow from investing activities (4,620) (54,000)

Net increase (decrease) in cash held (55,085) 169,815

Opening cash brought forward 201,415 31,599

cash at end of year 146,330 201,414


NOTE 1. STATEMENT Of AccOUNTING pOlIcIES

Reporting Entity

Visitor Information Network Incorporated (VIN Inc) is an incorporated society registered under the Incorporated Societies Act 1908.

Visitor Information Network Incorporated is a crown entity subsidiary as it is controlled by the New Zealand Tourism Board, which is a crown entity under the Crown Entities Act 2004. Control is exercised by the New Zealand Tourism Board through its right, under the VIN Inc constitution dated

July 2009, to appoint three directors and the chairman of the management board of six directors.

Basis of Reporting

The financial statements have been prepared on a going concern basis, and the accounting policies have been applied consistently throughout the period.

The financial statements have been prepared in accordance with the Financial Reporting Act 2013. They comply with Tier 3 PBE accounting standards and qualify for Tier 3 reporting on the basis that the total expenses for the reporting periods are less than $2m. The financial statements are reported using Simple Format Reporting - Accrual method.

The financial statements comprise statements of: financial position; changes in equity; comprehensive revenue and expense; accounting policies; as well as the notes to these statements.

Specific Accounting policies

The following specific accounting policies which materially affect the measurement of financial

performance and the financial position have been applied consistently to all years:

Goods & Services Tax

All amounts are shown exclusive of Goods and Services Tax (GST), except for receivables and

payables which are shown inclusive of GST.

Taxation

Income generated from within the circle of membership is income tax exempt based on the principle of mutuality. The income tax expense recognised in the Statement of Financial Performance is the estimated income tax payable in the current year, adjusted for any differences between the estimated and actual income tax payable in prior periods.

Notes to the financial statementsfOR ThE yEAR ENdEd 30 JUNE 2015

11



Revenue Recognition

Grants

Grants received are recognised in income, unless specific conditions attach to a grant and repayment of the grant is required where these conditions are not

met. In these cases, the grant is treated as a liability until the conditions are met.

Membership subscriptions

Membership subscriptions from i-SITE members are recognised in the month membership begins and is measured at fair value of the consideration received or receivable.

Intangible Assets

Intangible assets are recorded at cost and amortised over the estimated useful lives of the assets.

Amortisation

Amortisation is provided on a straight line basis, at rates calculated to allocate the assets’ cost, less estimated residual value, over their estimated useful lives. The amortisation period and the amortisation method are reviewed at least at the end of each reporting period.

The estimated useful lives of the assets held are:

> Public Campaign Website - 3 years.

> BookIT Software - 5 years

NOTE 2. EcONOMIc DEpENDENcY

To meet the test of a going concern VIN Inc is dependent on continuing funding from the New Zealand Tourism Board.

NOTE 3. AUDIT fEES

Other Professional services include preparation and completion of Income Tax Return.

Notes to the financial statementsfOR ThE yEAR ENdEd 30 JUNE 2015

2015 2014

$ $

feeS PaID To

BDo WeLLIngTon

Audit fee 8,126 8,165

Other professional services 1,250 800

12



NOTE 4. INTANGIBlE ASSETS

NOTE 4. INTANGIBlE ASSETS

The extranet Software became obsolete on 31 August 2014. In 2014, an investment was made into

Booklt Software and this software was implemented on 1 July 2015.

NOTE 5. RElATED pARTIES

During the period, VIN Inc received cash grants totalling $250,000 from the New Zealand Tourism Board (2014: $250,000).

In addition, during the year, VIN Inc has continued to receive the following “in kind” support from the New Zealand Tourism Board:

> Administrative and accounting services

> Employment and payment of 2 staff devoted to full time work on VIN Inc

The basis of valuing this support has been reviewed this year and has been calculated as $160,514 (2014: $153,317).

Paul Yeo, Executive Manager of VIN Inc, is also a director of Qualmark New Zealand, a company in

which VIN Inc had some transactions during the year.

2015 2014

$ $

Extranet Software – Cost - 37,720

Extranet Software – Amortisation - (20,086)

Extranet Software – Loss on disposal - 17,633

- -

Public Campaign Website – Cost 46,774 46,774

Public Campaign Website – Amortisation (46,774) (46,774)

- -

BookIT Software - Cost 58,620 54,000

BookIT Software - Amortisation (11,262) -

47,358 54,000

Total Intangible Assets 47,358 54,000

13



NOTE 6. cONTINGENcIES

There are no contingent assets or contingent liabilities as at 30 June 2015 (2014: Nil).

NOTE 7. STATEMENT Of cOMMITMENTS

There are no commitments at balance date (2014: Nil).

NOTE 8. REcONcIlIATION Of SUpRlUS (DEfIcIT) WITh cASh flOWS fROM

OpERATING AcTIVITIES

NOTE 9. EVENTS AfTER BAlANcE DATE

No events occurred subsequent to balance date (2014: Nil).

2015 2014

$ $

Net Operating Surplus (deficit) (9,889) 33,518

Add/(less) non-cash items:Depreciation and amortisation 11,262

2,386

11,262 2,386

Add/(less) items classified as investiing or financing activities:Depreciation and amortisation

-

17,633

- 17,633

Add/(less) movements in working capital items:(Increase) / decrease in receivables

(5,407) 153,973

(Increase) / decrease in prepayments & stock2,117 4,984

Increase/ (decrease) in payables and accruals 227 (24,422)

Increase/ (decrease) in income in advance (36,210) 29,377

(Increase) / decrease in GST (12,565) 6,365

(51,838) 170,277

Net cash inflow ( outflow) from operating activities (50,465)

223,815

14


Documents

VIN INC ANNUAL REPORT