Statement of Financial Performance



 
Contents Page (Link)
Statement of Financial Performance - Administration     2
  - Publications 3
  - Marketing 4
  - Disease 5
  - Summary 6
Statement of Financial Position   7
Statement of Movements in Equity   8
Notes to the Financial Statements
      including accounting policies 		  9
Statement of Cash Flows   16
Auditors Report   18















6. Bank of New Zealand Business Card

The Bank of New Zealand Visa Business Card has a credit limit of $5,000.00.
Repayments are made monthly by Direct Debit to the Bank of New Zealand current account.

7. Disease Control Programme

The Association had entered into an agreement with AgriQuality New Zealand Ltd for the provision of an American Foulbrood Disease Control Programme to be completed by 30 June 1998.   The contract price was $105,000 for the period 1 July 1997 to 30 June 1998.

8. Pest Management Strategy Contract

The Association had entered into an agreement with AgriQuality New Zealand Ltd to manage the National Beekeepers' Association of NZ Inc's requirements to manage part of the industries Pest Management Strategy (PMS) for American foulbrood disease in honey bees.
The contract price for the period 1 November 1998 to completion on 31 July 1999 was $89,772 (GST exclusive), to be invoiced on a monthly basis, refer to note 16.

9. Honey Industry Trust Loan

The Honey Industry Trust loan totalling $25,000 received 2 September 1998 has an interest rate of 5% per annum.   Repayments are to be made annually on the anniversary of the loan at $5,000 plus interest.

Commodity Levies are reflected in the Financial Statements based on amounts received from beekeepers or where agreement has been reached on an amount to be paid to the Association.
Commodity Levies are raised based on information supplied by AgriQuality New Zealand Ltd.
The information in some cases has proved inaccurate and as a result NBA received lower than expected levies as some of those stated in the register were not in production or eligible for a levy.

11. Presidents Honorarium

There has been no provision made for the Honoraria payments for 1998 and 1999 as the executive do not consider that these will be claimed.

12. Related Party Transactions

There were no related party transactions during the year to 31 December 1999. (1998: Nil)

13. Contingent Liabilities

There are no contingent liabilities at 31 December 1999. (1998: Nil)

14. Subsequent Events

The Association took out a loan with the Honey Industry Trust totalling $30,000 to cover cashflow shortages.   The loan was received on 3 March 2000, has an interest rate of 5% p.a. and was repaid on 31 May 2000.   Other than this, there have been no events subsequent to 31 December 1999 which would cause a material difference to the Financial Statements.
(1998: Nil)

15. Capital Commitments

There were no material capital commitments at 31 December 1999. (1998: Nil)

16. Other Commitments

The National Beekeepers Association has committed to a management program for the Association's Pest Management Strategy for the elimination of American foulbrood disease in honey bees.   The term of the management contract is for the year to 31 July 2000.   Invoices to be drawn by Agriquality New Zealand following balance date are to be for $10,406 plus GST monthly.

17. Segment Information

The Association operates primarily in the area of a professional association of people and organisations involved in the furthering of the interests of the beekeeping industry.

All operations are based in New Zealand.

18. Financial Instruments

  1. Currency and Interest Rate Risk

    Currency:

    The Association receives journal subscription income from time to time denominated in overseas currency.   The subscription is converted into New Zealand currency at the time of being banked.   As the level of transactions received in overseas currency is small, no hedging arrangements are entered into.

    Interest Rate:

    The Association has borrowings with the Honey Industry Trust; the interest rate is fixed at 5%, there is no exposure to interest fluctuations.   (Effective interest rate on current investments is 5%, and the effective interest rate on current accounts is 1.5%).

  2. Concentration of Credit Risk

    In the normal course of business the Association incurs credit risk from trade debtors and transactions with financial institutions.   The Association has a credit policy which is used to manage this risk. As part of this policy, payments by debtors are monitored and defaults are referred to the Association lawyers. The Association has no significant concentrations of credit risk.   The Association does not require any collateral or security to support financial instruments due to its power to levy beekeepers by government order in council and due to the quality of the financial institutions' dealt with.

  3. Fair Values

    The carrying value of all of the Association's financial assets and liabilities are equivalent to their fair value.







AUDIT REPORT

To the Readers of the financial report of the National Beekeepers Association of New Zealand (Inc)

We have audited the financial report on pages 2 to 17.   The financial report provides information about the past financial performance of the Association and its financial position as at 31 December 1999.   This information is stated in accordance with the accounting policies set out on pages 9 and 14.

Executives Responsibilities
The Executive is responsible for the preparation of a financial report which gives a true and fair view of the financial position of the Association as at 31 December 1999 and of the results of their operations and cashflows for the year ended 31 December 1999.

Auditors' Responsibilities
It is our responsibility to express an independent opinion on the financial report presented by the Executive and report our opinion to you.

Basis of Opinion
An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial report. It also includes assessing:

  • the significant estimates and judgements made by the Executive in the preparation of the financial report, and
  • whether the accounting policies are appropriate to the Association's circumstances, consistently applied and adequately disclosed.

We conducted our audit in accordance with generally accepted auditing standards in New Zealand.   We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial report is free from material misstatements, whether caused by fraud or error.   In forming our opinion we also evaluated that overall adequacy of the presentation of information in the financial report.

Other than in our capacity as auditors we have no relationship with or interest in the Association.

Fundamental Uncertainty
In forming our unqualified opinion, we have considered the adequacy of disclosures made in the financial report concerning recognition of commodity levy income.   The result being that there are no practical audit procedures to determine the effect of non-recognition of commodity levy income.   Details of the circumstances relating to this fundamental uncertainty are described in note 10.

Going Concern
The financial report has been prepared on a going concern basis, the validity of which depends on future funding being available.   The financial report does not include any adjustments that would result from a failure to obtain funding.
Details of the circumstances relating to this fundamental uncertainty are described in note 19.

Unqualified Opinion
We have obtained all the information and explanations we have required.

In our opinion:

  • proper accounting records have been kept by the Association as far as appears from our examination of those records; and
  • the financial report on pages 2 to 17:
    - complies with generally accepted accounting practice;
    - gives a true and fair view of the financial position of the Association as at 31 December 1999 and the results of their operations and cashflows for the year ended on that date.

Our audit report was completed on 6 June 2000 and our unqualified opinion is expressed as at that date.

PricewaterhouseCoopers
Napier
6 June 2000