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NEW RIVER PRIMARY SCHOOL

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

School Directory

Ministry Number: 2116

Principal: Nikki De Ruyter

School Address: 117 Elizabeth Street, Kew, Invercargill

School Phone: 03 211 0035

School Email: [email protected]

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NEW RIVER PRIMARY SCHOOL

Annual Report - For the year ended 31 December 2022

Index

Page Statement

Financial Statements

1 Statement of Responsibility

2 Members of the Board

3 Statement of Comprehensive Revenue and Expense

4 Statement of Changes in Net Assets/Equity

5 Statement of Financial Position

6 Statement of Cash Flows

7 - 18 Notes to the Financial Statements

Other Information

Analysis of Variance

Independent Auditor's Report

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New River Primary School
Members of the Board
For the year ended 31 December 2022

Term
Expired/
Name Position How Position Gained Expires

Junaya Leask Presiding Member Elected Jun 2025

Nikki De Ruyter Principal ex Officio

Gina Larson-White Staff Representative Elected Sep 2022

Rebecca Jordan Staff Representative Elected Jun 2025

Teri Black Parent Representative Elected Jun 2025

Kimberley Taylor Parent Representative Elected Jun 2025

Tui Larson Parent Representative Elected Jun 2025

Valessa Kaifoto Parent Representative Co-opted Jun 2025

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New River Primary School
Statement of Comprehensive Revenue and Expense
For the year ended 31 December 2022

2022 2022 2021

Budget
Notes Actual (Unaudited) Actual
$ $ $
Revenue
Government Grants 2 2,607,353 2,108,869 2,351,728
Locally Raised Funds 3 37,236 39,800 51,996
Interest Income 5,582 300 384
2,650,171 2,148,969 2,404,108

Expenses
Locally Raised Funds 3 3,685 5,000 3,293
Learning Resources 4 1,702,884 1,484,954 1,595,597
Administration 5 365,946 122,390 289,085
Finance 2,068 - 2,848
Property 6 414,230 459,803 376,572
Loss on Disposal of Property, Plant and Equipment 259 - 1,153
2,489,072 2,072,147 2,268,548

Net Surplus for the year 161,099 76,822 135,560

Other Comprehensive Revenue and Expense - - -

Total Comprehensive Revenue and Expense for the Year 161,099 76,822 135,560

The above Statement of Comprehensive Revenue and Expense should be read in conjunction with the accompanying
notes which form part of these financial statements.

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New River Primary School
Statement of Changes in Net Assets/Equity
For the year ended 31 December 2022

2022 2022 2021

Budget
Notes Actual Actual
(Unaudited)
$ $ $

Equity at 1 January 553,282 553,282 415,847

Total comprehensive revenue and expense for the year 161,099 76,822 135,560
Contributions from the Ministry of Education
Contribution - Furniture and Equipment Grant - - 1,875

Equity at 31 December 714,381 630,104 553,282

Accumulated comprehensive revenue and expense 714,381 630,104 553,282

Equity at 31 December 714,381 630,104 553,282

The above Statement of Changes in Net Assets/Equity should be read in conjunction with the accompanying notes which
form part of these financial statements.

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New River Primary School
Statement of Financial Position
As at 31 December 2022
2022 2022 2021
Budget
Notes Actual (Unaudited) Actual
$ $ $
Current Assets
Cash and Cash Equivalents 7 825,059 746,916 661,114
Accounts Receivable 8 109,417 101,162 101,162
GST Receivable 1,283 - -
Prepayments 39,713 13,033 13,033
Funds Receivable for Capital Works Projects 14 3,859 3,481 3,481
979,331 864,592 778,790

Current Liabilities
GST Payable - 4,358 4,358
Accounts Payable 10 205,053 137,752 137,752
Provision for Cyclical Maintenance 11 4,228 4,228 4,228
Painting Contract Liability 12 14,941 14,941 14,941
Finance Lease Liability 13 8,589 10,972 10,972
Funds held for Capital Works Projects 14 140,959 126,968 126,968
373,770 299,219 299,219

Working Capital Surplus/(Deficit) 605,561 565,373 479,571

Non-current Assets
Property, Plant and Equipment 9 163,001 127,670 136,650
163,001 127,670 136,650

Non-current Liabilities
Provision for Cyclical Maintenance 11 29,347 18,903 18,903
Painting Contract Liability 12 14,660 24,527 24,527
Finance Lease Liability 13 10,174 16,028 16,028
54,181 59,458 59,458

Net Assets 714,381 633,585 556,763

Equity 714,381 630,104 553,282

The above Statement of Financial Position should be read in conjunction with the accompanying notes which form part of
these financial statements.

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New River Primary School
Statement of Cash Flows
For the year ended 31 December 2022
2022 2022 2021
Budget
Note Actual (Unaudited) Actual
$ $ $
Cash flows from Operating Activities
Government Grants 960,179 697,066 748,815
Locally Raised Funds 37,521 39,800 50,646
Goods and Services Tax (net) (5,641) - 7,030
Payments to Employees (555,970) (393,600) (407,490)
Payments to Suppliers (215,198) (236,744) (201,465)
Interest Received 5,543 300 384
Net cash from/(to) Operating Activities 226,434 106,822 197,920

Cash flows from Investing Activities

Purchase of Property Plant & Equipment (and Intangibles) (57,545) (21,020) (23,132)
Net cash (to)/from Investing Activities (57,545) (21,020) (23,132)

Cash flows from Financing Activities

Furniture and Equipment Grant - - 1,875
Finance Lease Payments (10,227) - (11,210)
Painting Contract Payments (9,867) - (9,867)
Funds Administered on Behalf of Third Parties 15,150 - 44,169
Net cash (to)/from Financing Activities (4,944) - 24,967

Net increase/(decrease) in cash and cash equivalents 163,945 85,802 199,755

Cash and cash equivalents at the beginning of the year 7 661,114 661,114 461,359

Cash and cash equivalents at the end of the year 7 825,059 746,916 661,114

The statement of cash flows records only those cash flows directly within the control of the School. This means centrally
funded teachers' salaries and the use of land and buildings grant and expense have been excluded.

The above Statement of Cash Flows should be read in conjunction with the accompanying notes which form part of these
financial statements.

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New River Primary School
Notes to the Financial Statements
For the year ended 31 December 2022
1. Statement of Accounting Policies

1.1. Reporting Entity

New River Primary School (the School) is a Crown entity as specified in the Crown Entities Act 2004 and a school as
described in the Education and Training Act 2020. The Board is of the view that the School is a public benefit entity for
financial reporting purposes.

1.2. Basis of Preparation

Reporting Period
The financial statements have been prepared for the period 1 January 2022 to 31 December 2022 and in accordance with the
requirements of the Education and Training Act 2020.

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

Financial Reporting Standards Applied

The Education and Training Act 2020 requires the School, as a Crown entity, to prepare financial statements in accordance
with generally accepted accounting practice. The financial statements have been prepared in accordance with generally
accepted accounting practice in New Zealand, applying Public Sector Public Benefit Entity (PBE) Standards Reduced
Disclosure Regime as appropriate to public benefit entities that qualify for Tier 2 reporting. The school is considered a Public
Benefit Entity as it meets the criteria specified as 'having a primary objective to provide goods and/or services for community
or social benefit and where any equity has been provided with a view to supporting that primary objective rather than for
financial return to equity holders'.

PBE Accounting Standards Reduced Disclosure Regime

The School qualifies for Tier 2 as the school is not publicly accountable and is not considered large as it falls below the
expenditure threshold of $30 million per year. All relevant reduced disclosure concessions have been taken.

Measurement Base
The financial statements are prepared on the historical cost basis unless otherwise noted in a specific accounting policy.

Presentation Currency
These financial statements are presented in New Zealand dollars, rounded to the nearest whole dollar.

Specific Accounting Policies

The accounting policies used in the preparation of these financial statements are set out below.

Critical Accounting Estimates And Assumptions

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may
differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised and in any future periods affected.

Cyclical Maintenance
A school recognises its obligation to maintain the Ministry’s buildings in a good state of repair as a provision for cyclical
maintenance. This provision relates mainly to the painting of the school buildings. The estimate is based on the school’s best
estimate of the cost of painting the school and when the school is required to be painted, based on an assessment of the
school’s condition. During the year, the Board assesses the reasonableness of its painting maintenance plan on which the
provision is based. Cyclical maintenance is disclosed at note 11.

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Useful lives of property, plant and equipment
The School reviews the estimated useful lives of property, plant and equipment at the end of each reporting date. The School
believes that the estimated useful lives of the property, plant and equipment as disclosed in the significant accounting policies
are appropriate to the nature of the property, plant and equipment at reporting date. Property, plant and equipment is
disclosed at note 9.

Critical Judgements in applying accounting policies

Management has exercised the following critical judgements in applying accounting policies:

Classification of leases
Determining whether a lease is a finance lease or an operating lease requires judgement as to whether the lease transfers
substantially all the risks and rewards of ownership to the school. A lease is classified as a finance lease if it transfers
substantially all risks and rewards incidental to ownership of an underlying asset to the lessee. In contrast, an operating lease
is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset to the lessee.
Judgement is required on various aspects that include, but are not limited to, the fair value of the leased asset, the economic
life of the leased asset, whether or not to include renewal options in the lease term, and determining an appropriate discount
rate to calculate the present value of the minimum lease payments. Classification as a finance lease means the asset is
recognised in the statement of financial position as property, plant, and equipment, whereas for an operating lease no such
asset is recognised. Finance lease liability disclosures are contained in note 13. Future operating lease commitments are
disclosed in note 19b.

Recognition of grants
The School reviews the grants monies received at the end of each reporting period and whether any require a provision to
carry forward amounts unspent. The School believes all grants received have been appropriately recognised as a liability if
required. Government grants are disclosed at note 2.

1.3. Revenue Recognition

Government Grants
The school receives funding from the Ministry of Education. The following are the main types of funding that the School
receives.

Operational grants are recorded as revenue when the School has the rights to the funding, which is in the year that the
funding is received.

Teachers salaries grants are recorded as revenue when the School has the rights to the funding in the salary period to which
they relate. The grants are not received in cash by the School and are paid directly to teachers by the Ministry of Education.

Other Ministry Grants for directly funded programmes are recorded as revenue when the School has the rights to the funding
in the period to which they relate. The grants are not received in cash by the School and are paid directly by the Ministry of
Education.

The property from which the School operates is owned by the Crown and managed by the Ministry of Education on behalf of
the Crown. Grants for the use of land and buildings are not received in cash by the School as they equate to the deemed
expense for using the land and buildings which are owned by the Crown. The School’s use of the land and buildings as
occupant is based on a property occupancy document as gazetted by the Ministry. The expense is based on an assumed
market rental yield on the value of land and buildings as used for rating purposes.

This is a non-cash revenue that is offset by a non-cash expense. The use of land and buildings grants and associated
expenditure are recorded in the period the School uses the land and buildings.

Other Grants where conditions exist

Other grants are recorded as revenue when the School has the rights to the funding, unless there are unfulfilled conditions
attached to the grant, in which case the amount relating to the unfulfilled conditions is recognised as a liability and recognised
as revenue as the conditions are fulfilled.

Donations, Gifts and Bequests

Donations, gifts and bequests are recognised as an asset and revenue when the right to receive funding or the asset has
been established unless there is an obligation to return funds if conditions are not met. If conditions are not met funding is
recognised as revenue in advance and recognised as revenue when conditions are satisfied.

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Interest Revenue
Interest Revenue earned on cash and cash equivalents and investments is recorded as revenue in the period it is earned.

1.4. Operating Lease Payments

Payments made under operating leases are recognised in the Statement of Comprehensive Revenue and Expense on a
straight line basis over the term of the lease.

1.5. Finance Lease Payments

Finance lease payments are apportioned between the finance charge and the reduction of the outstanding liability. The
finance charge is allocated to each period during the lease term on an effective interest basis.

1.6. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, bank balances, deposits held at call with banks, and other short term highly
liquid investments with original maturities of 90 days or less, and bank overdrafts. The carrying amount of cash and cash
equivalents represent fair value.

1.7. Accounts Receivable

Short-term receivables are recorded at the amount due, less an allowance for expected credit losses (uncollectable debts).
The school's receivables are largely made up of funding from the Ministry of Education, therefore the level of uncollectable
debts is not considered to be material. However, short-term receivables are written off when there is no reasonable
expectation of recovery.

1.8. Investments
Bank term deposits are initially measured at the amount invested. Interest is subsequently accrued and added to the
investment balance. A loss allowance for expected credit losses is recognised if the estimated loss allowance is not trivial.

1.9. Property, Plant and Equipment

Land and buildings owned by the Crown are excluded from these financial statements. The Board’s use of the land and
buildings as ‘occupant’ is based on a property occupancy document.

Improvements funded by the Board to buildings owned by the Crown or directly by the board are recorded at cost, less
accumulated depreciation and impairment losses.

Property, plant and equipment are recorded at cost or, in the case of donated assets, fair value at the date of receipt, less
accumulated depreciation and impairment losses. Cost or fair value as the case may be, includes those costs that relate
directly to bringing the asset to the location where it will be used and making sure it is in the appropriate condition for its
intended use.

Gains and losses on disposals (i.e. sold or given away) are determined by comparing the proceeds received with the carrying
amounts (i.e. the book value). The gain or loss arising from the disposal of an item of property, plant and equipment is
recognised in the Statement of Comprehensive Revenue and Expense.

Finance Leases
A finance lease transfers to the lessee substantially all the risks and rewards incidental to ownership of an asset, whether or
not title is eventually transferred. At the start of the lease term, finance leases are recognised as assets and liabilities in the
statement of financial position at the lower of the fair value of the leased asset or the present value of the minimum lease
payments. The finance charge is charged to the Statement of Comprehensive Revenue and Expense over the lease period so
as to produce a constant periodic rate of interest on the remaining balance of the liability. The amount recognised as an asset
is depreciated over its useful life. If there is no reasonable certainty whether the school will obtain ownership at the end of the
lease term, the asset is fully depreciated over the shorter of the lease term and its useful life.

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Depreciation
Property, plant and equipment, except for library resources, are depreciated over their estimated useful lives on a straight line
basis. Library resources are depreciated on a diminishing value basis. Depreciation of all assets is reported in the Statement
of Comprehensive Revenue and Expense.

The estimated useful lives of the assets are:

Building improvements 10–75 years
Furniture and equipment 10–15 years
Information and communication technology 4–5 years
Motor vehicles 5 years
Leased assets held under a Finance Lease Term of Lease
Library resources 12.5% Diminishing value

1.10. Impairment of property, plant and equipment and intangible assets

The school does not hold any cash generating assets. Assets are considered cash generating where their primary objective is
to generate a commercial return.

Non cash generating assets

Property, plant, and equipment and intangible assets held at cost that have a finite useful life are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If such indication
exists, the School estimates the asset's recoverable service amount. An impairment loss is recognised as the amount by
which the asset’s carrying amount exceeds its recoverable service amount. The recoverable service amount is the higher of
an asset’s fair value less costs to sell and value in use.

Value in use is determined using an approach based on either a depreciated replacement cost approach, restoration cost
approach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature
of the impairment and availability of information.

In determining fair value less costs to sell the school engages an independent valuer to assess market value based on the
best available information.

If an asset’s carrying amount exceeds its recoverable service amount, the asset is regarded as impaired and the carrying
amount is written down to the recoverable amount. The total impairment loss is recognised in the Statement of
Comprehensive Revenue and Expense.

The reversal of an impairment loss is recognised in the Statement of Comprehensive Revenue and Expense. A previously
recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s
recoverable service amount since the last impairment loss was recognised.

1.11. Accounts Payable

Accounts Payable represents liabilities for goods and services provided to the School prior to the end of the financial year
which are unpaid. Accounts Payable are recorded at the amount of cash required to settle those liabilities. The amounts are
unsecured and are usually paid within 30 days of recognition.

1.12. Employee Entitlements

Short-term employee entitlements
Employee entitlements that are expected to be settled within 12 months after the end of the reporting period in which the
employees provide the related service are measured based on accrued entitlements at current rates of pay. These include
salaries and wages accrued up to balance date, annual leave earned by non teaching staff, but not yet taken at balance date.

Long-term employee entitlements

Employee benefits that are not expected to be settled wholly before 12 months after the end of the reporting period in which
the employee provides the related service, such as retirement and long service leave, have been calculated on an actuarial
basis.

The calculations are based on the likely future entitlements accruing to employees, based on years of service, years to
entitlement, the likelihood that employees will reach the point of entitlement, and contractual entitlement information, and the
present value of the estimated future cash flows. Remeasurements are recognised in Statement of Comprehensive Revenue
and Expense in the period in which they arise.

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1.13. Revenue Received in Advance
Revenue received in advance relates to fees received from students and grants received where there are unfulfilled
obligations for the School to provide services in the future. The fees are recorded as revenue as the obligations are fulfilled
and the fees earned.

1.14. Funds held for Capital Works

The school directly receives funding from the Ministry of Education for capital works projects that are included in the School
five year capital works agreement. These funds are held on behalf and for a specified purpose as such these transactions
are not recorded in the Statement of Comprehensive Revenue and Expense.

The School holds sufficient funds to enable the funds to be used for their intended purpose at any time.

1.15. Provision for Cyclical Maintenance

The property from which the School operates is owned by the Crown, and is vested in the Ministry. The Ministry has gazetted
a property occupancy document that sets out the Board’s property maintenance responsibilities.

Cyclical maintenance, which involves painting of the School, makes up the most significant part of the Board’s responsibilities
outside the day-to-day maintenance. The provision is a reasonable estimate, based on the school’s best estimate of the cost
of painting the school and when the School is required to be painted, based on an assessment of the school’s condition.

The School carries out painting maintenance of the whole school over a variety of periods in accordance with the conditional
assessment of each area of the school. The economic outflow of this is dependent on the plan established by the School to
meet this obligation and is detailed in the notes and disclosures of these accounts.

1.16. Financial Instruments

The School’s financial assets comprise cash and cash equivalents, accounts receivable, and investments. All of these
financial assets, except for investments that are shares, are initially recognised at fair value and subsequently measured at
amortised cost, using the effective interest method.

Investments that are shares are categorised as financial assets at fair value through other comprehensive revenue and
expense in accordance with financial reporting standards. On initial recognition of an equity investment that is not held for
trading, the School may irrevocably elect to present subsequent changes in the investments' fair value in other comprehensive
revenue and expense. This election has been made for investments that are shares. Subsequent to initial recognition, these
assets are measured at fair value. Dividends are recognised as income in the Statement of Comprehensive Revenue and
Expense unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses
are recognised in other comprehensive revenue and expense and are never reclassified to the Statement of Comprehensive
Revenue and Expense.

The School’s financial liabilities comprise accounts payable, borrowings, finance lease liability, and painting contract liability.
Financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and
any gain or loss on derecognition are recognised in the Statement of Comprehensive Revenue and Expense.

1.17. Borrowings
Borrowings, on normal commercial terms, are initially recognised at the amount borrowed plus transaction costs. Interest due
on the borrowings is subsequently accrued and added to the borrowings balance. Borrowings are classified as current
liabilities unless the school has an unconditional right to defer settlement of the liability for at least 12 months after balance
date.

1.18. Goods and Services Tax (GST)

The financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and
accounts payable which are stated as GST inclusive.

The net amount of GST paid to, or received from, the IRD, including the GST relating to investing and financing activities, is
classified as a net operating cash flow in the statements of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

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1.19. Budget Figures
The budget figures are extracted from the School budget that was approved by the Board.

1.20. Services received in-kind

From time to time the School receives services in-kind, including the time of volunteers. The School has elected not to
recognise services received in kind in the Statement of Comprehensive Revenue and Expense.

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2. Government Grants

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Government Grants - Ministry of Education 895,645 691,066 739,263
Teachers' Salaries Grants 1,154,157 1,100,000 1,178,725
Use of Land and Buildings Grants 246,183 311,803 230,256
Healthy Lunch Programme 247,602 - 180,382
Other Government Grants 63,766 6,000 23,102
2,607,353 2,108,869 2,351,728

The School has opted in to the donations scheme for this year. Total amount received was $31,050 (2021: $34,050).

3. Locally Raised Funds

Local funds raised within the School's community are made up of:
2022 2022 2021
Budget
Actual (Unaudited) Actual
Revenue $ $ $
Donations & Bequests 15,787 14,000 13,796
Fees for Extra Curricular Activities 1,802 - 4,303
Fundraising & Community Grants 5,775 6,800 17,295
Other Revenue 13,872 19,000 16,602
37,236 39,800 51,996

Expenses
Extra Curricular Activities Costs 1,008 - 174
Trading - - 892
Fundraising & Community Grant Costs 2,677 5,000 2,227
3,685 5,000 3,293

Surplus / (Deficit) for the year Locally raised funds 33,551 34,800 48,703

4. Learning Resources

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Curricular 42,008 42,150 50,607
Information and Communication Technology - 1,000 688
Library Resources 468 2,004 178
Employee Benefits - Salaries 1,613,198 1,403,000 1,502,461
Staff Development 9,476 6,800 5,118
Depreciation 37,734 30,000 36,545
1,702,884 1,484,954 1,595,597

5. Administration

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Audit Fee 5,606 6,450 5,443
Board Fees 3,665 4,000 2,475
Board Expenses 1,976 2,000 -
Communication 3,253 4,000 2,567
Consumables 28,036 25,700 26,405
Healthy Lunches Expenses 237,220 - 180,382
Other 14,724 16,640 1,859
Employee Benefits - Salaries 63,149 55,600 63,582
Insurance 5,682 5,000 4,222
Service Providers, Contractors and Consultancy 2,635 3,000 2,150
365,946 122,390 289,085

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6. Property

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Caretaking and Cleaning Consumables 48,117 51,000 37,761
Cyclical Maintenance Provision 15,518 - 15,518
Grounds 5,482 6,200 5,549
Heat, Light and Water 35,994 34,000 32,889
Rates 3,910 3,500 3,671
Repairs and Maintenance 13,657 12,800 11,000
Use of Land and Buildings 246,183 311,803 230,256
Security 3,018 5,500 6,045
Employee Benefits - Salaries 42,351 35,000 33,883
414,230 459,803 376,572

The Use of Land and Buildings figure represents 5% of the school’s total property value. Property values are established as part of the nation-
wide revaluation exercise that is conducted every 30 June for the Ministry of Education’s year-end reporting purposes.

7. Cash and Cash Equivalents

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Bank Accounts 825,059 746,916 661,114
Cash and Cash Equivalents for Statement of Cash Flows 825,059 746,916 661,114

The carrying value of short-term deposits with original maturity dates of 90 days or less approximates their fair value.

Of the $825,059 Cash and Cash Equivalents, $140,959 is held by the School on behalf of the Ministry of Education. These funds have been
provided for the Ministry as part of the school's 5 Year Agreement funding for upgrades to the school's buildings. The funds are required to be
spent in 2023 on Crown owned school buildings.

8. Accounts Receivable

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Receivables 1,065 1,350 1,350
Receivables from the Ministry of Education - 7,726 7,726
Interest Receivable 39 - -
Teacher Salaries Grant Receivable 108,313 92,086 92,086
109,417 101,162 101,162

Receivables from Exchange Transactions 1,104 1,350 1,350

Receivables from Non-Exchange Transactions 108,313 99,812 99,812
109,417 101,162 101,162

9. Property, Plant and Equipment

Opening
Balance (NBV) Additions Disposals Impairment Depreciation Total (NBV)
2022 $ $ $ $ $ $
Land 21,330 - - - - 21,330
Building Improvements 8,280 - - - (1,737) 6,543
Furniture and Equipment 25,527 32,980 - - (5,079) 53,428
Information and Communication Technology 50,969 25,863 - - (18,531) 58,301
Leased Assets 25,902 3,473 - - (11,585) 17,790
Library Resources 4,642 2,028 (259) - (802) 5,609
Balance at 31 December 2022 136,650 64,344 (259) - (37,734) 163,001

The net carrying value of equipment held under a finance lease is $17,790 (2021: $25,902)

Restrictions
With the exception of the contractual restrictions relating to the above noted finance leases, there are no other restrictions over the title of the
school's property, plant and equipment, nor are any property, plant and equipment pledged as security for liabilities.

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2022 2022 2022 2021 2021 2021
Cost or Accumulated Net Book Cost or Accumulated Net Book
Valuation Depreciation Value Valuation Depreciation Value
$ $ $ $ $ $
Land 21,330 - 21,330 21,330 - 21,330
Building Improvements 159,785 (153,242) 6,543 159,786 (151,506) 8,280
Furniture and Equipment 282,191 (228,763) 53,428 249,210 (223,683) 25,527
Information and Communication Technology 262,004 (203,703) 58,301 236,140 (185,171) 50,969
Motor Vehicles 19,867 (19,867) - 19,867 (19,867) -
Leased Assets 44,684 (26,894) 17,790 43,965 (18,063) 25,902
Library Resources 23,970 (18,361) 5,609 23,238 (18,596) 4,642
Balance at 31 December 813,831 (650,830) 163,001 753,536 (616,886) 136,650

10. Accounts Payable

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Creditors 56,988 14,648 14,648
Accruals 5,606 5,443 5,443
Employee Entitlements - Salaries 130,148 109,448 109,448
Employee Entitlements - Leave Accrual 12,311 8,213 8,213
205,053 137,752 137,752

Payables for Exchange Transactions 205,053 137,752 137,752

205,053 137,752 137,752

The carrying value of payables approximates their fair value.

11. Provision for Cyclical Maintenance

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Provision at the Start of the Year 23,131 23,131 12,685
Increase to the Provision During the Year 15,518 - 15,518
Use of the Provision During the Year (5,074) - (5,072)
Provision at the End of the Year 33,575 23,131 23,131

Cyclical Maintenance - Current 4,228 4,228 4,228

Cyclical Maintenance - Non current 29,347 18,903 18,903
33,575 23,131 23,131

The School's cyclical maintenance schedule details annual painting & other significant cyclical maintenance work to be undertaken. The costs
associated with this annual work will vary depending on the requirements during the year. This plan is based on the School's most recent 10
Year Property plan, adjusted as identified and confirmed appropriate by the Board, to other reliable sources of evidence.

12. Painting Contract Liability

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
Due within one year 14,941 14,941 14,941
Due after one year 14,660 24,527 24,527
29,601 39,468 39,468

On 10 March 2020 the Board signed an agreement with Programmed Maintenance Services (NZ) Ltd (the contractor) for an agreed programme
of work covering a six year period. The programme provides for a full exterior repaint of the school in 2020, with regular maintenance in
subsequent years. The agreement has an annual commitment of $14,941. The liability is the best estimate of the actual amount of work
performed by the contractor for which the contractor has not been paid at balance sheet date. The liability has not been adjusted for inflation and
the effect on the time value of money.

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13. Finance Lease Liability

The School has entered into a number of finance lease agreements for computers and other ICT equipment. Minimum lease payments payable:

2022 2022 2021

Budget
Actual (Unaudited) Actual
$ $ $
No Later than One Year 9,788 12,850 12,850
Later than One Year and no Later than Five Years 10,801 17,545 17,545
Future Finance Charges (1,826) (3,395) (3,395)
18,763 27,000 27,000
Represented by:
Finance lease liability - Current 8,589 10,972 10,972
Finance lease liability - Non current 10,174 16,028 16,028
18,763 27,000 27,000

14. Funds Held for Capital Works Projects

During the year the School received and applied funding from the Ministry of Education for the following capital works projects. The amount of
cash held on behalf of the Ministry for capital works project is included under cash and cash equivalents in note 7.

Opening Receipts Board Closing

2022 Balances from MoE Payments Contributions Balances
$ $ $ $ $
SIPS, E,O Storage & Indoor #222248 62,310 - (62,197) - 113
Chimney Upgrade #234281 64,658 - (68,517) - (3,859)
Roof Replacement - 155,000 (14,154) - 140,846
Totals 126,968 155,000 (144,868) - 137,100

Represented by:
Funds Held on Behalf of the Ministry of Education 140,959
Funds Receivable from the Ministry of Education (3,859)

Opening Receipts Board Closing

2021 Balances from MoE Payments Contributions Balances
$ $ $ $ $
A, C & O Infrastructure 10,060 - (10,060) - -
SIPS, E,O Storage & Indoor #222248 67,533 67,186 (72,409) - 62,310
LSC Repurpose #219821 - 63,925 (63,925) - -
Chimney Upgrade #234281 - 70,000 (5,342) - 64,658
Totals 77,593 201,111 (151,736) - 126,968

Represented by:
Funds Held on Behalf of the Ministry of Education 126,968
Funds Receivable from the Ministry of Education (3,481)

15. Related Party Transactions

The School is a controlled entity of the Crown, and the Crown provides the major source of revenue to the School. The School enters into
transactions with other entities also controlled by the Crown, such as government departments, state-owned enterprises and other Crown
entities. Transactions with these entities are not disclosed as they occur on terms and conditions no more or less favourable than those that it is
reasonable to expect the School would have adopted if dealing with that entity at arm’s length.

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 condition no more or less favourable than those that it is reasonable to expect the school would have adopted in
dealing with the party at arm’s length in the same circumstances. Further, transactions with other government agencies (for example,
Government departments and Crown entities) are not disclosed as related party transactions when they are consistent with the normal operating
arrangements between government agencies and undertaken on the normal terms and conditions for such transactions.

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16. Remuneration

Key management personnel compensation

Key management personnel of the School include all trustees of the Board, Principal, Deputy and Assistant Principals.

2022 2021
Actual Actual
$ $
Board Members
Remuneration 3,665 2,475

Leadership Team
Remuneration 255,423 432,650
Full-time equivalent members 2.00 4.00

Total key management personnel remuneration 259,088 435,125

There are 6 members of the Board excluding the Principal. The Board had held 10 full meetings of the Board in the year. The Board also has
Finance and Property members that meet monthly and quarterly respectively. As well as these regular meetings, including preparation time, the
Presiding member and other Board members have also been involved in ad hoc meetings to consider student welfare matters including stand
downs, suspensions, and other disciplinary matters.

Principal
The total value of remuneration paid or payable to the Principal was in the following bands:
2022 2021
Actual Actual
Salaries and Other Short-term Employee Benefits: $000 $000
Salary and Other Payments 130 - 140 130 - 140
Benefits and Other Emoluments 4-5 4-5
Termination Benefits 0-0 0-0

Other Employees
The number of other employees with remuneration greater than $100,000 was in the following bands:

Remuneration 2022 2021

$000 FTE Number FTE Number
110 -120 1.00 1.00
1.00 1.00

The disclosure for 'Other Employees' does not include remuneration of the Principal.

17. Compensation and Other Benefits Upon Leaving

The total value of compensation or other benefits paid or payable to persons who ceased to be trustees, committee members, or employees
during the financial year in relation to that cessation and number of persons to whom all or part of that total was payable was as follows:

2022 2021
Actual Actual
Total $ - $ -
Number of People - -

18. Contingencies

There are no contingent liabilities and no contingent assets except as noted below as at 31 December 2022 (Contingent liabilities and assets at
31 December 2021: nil).

Holidays Act Compliance – schools payroll

The Ministry of Education performs payroll processing and payments on behalf of boards, through payroll service provider Education Payroll
Limited.

The Ministry's review of the schools sector payroll to ensure compliance with the Holidays Act 2003 is ongoing. Final calculations and potential
impact on any specific individual will not be known until further detailed analysis and solutions have been completed.

To the extent that any obligation cannot reasonably be quantified at 31 December 2022, a contingent liability for the school may exist.

Additional funding wash up payment

The Ministry of Education provided additional funding for both the Support Staff in Schools' Collective Agreement (CA) Settlement and the
Teacher Aide Pay Equity Settlement. The School has not been notified of the final wash up calculation relating to 31 December 2022. The final
calculations impact on the financial statements is unable to be determined at the date of reporting.

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19. Commitments

(a) Capital Commitments

As at 31 December 2022 the Board has entered into the following contract agreements for capital works.

(a) $149,688 SIPS contract to upgrade the Hall (Block O) storage and lighting, and create a new indoor learning and play area in Block E which
will be fully funded by the Ministry of Education. $134,719 has been received of which $134,607 has been spent on the project to date; and

(b) $86,550 contract for the Boiler Chimney fully funded by the Ministry of Education. $70,000 has been received and $73,859 has been spent
on the project to date; and

(c) (b) $188,000 contract for Roof Replacement & Re-fixing to be completed in 2024, which will be fully funded by the Ministry of Education.
$155,000 has been received of which $14,154 has been spent on the project to date.

(Capital commitments in relation to Ministry projects at 31 December 2021: $126,968)

(b) Operating Commitments

As at 31 December 2022 the Board has not entered into any operating contracts.

(Operating commitments at 31 December 2021: nil)

20. Financial Instruments

The carrying amount of financial assets and liabilities in each of the financial instrument categories are as follows:

Financial assets measured at amortised cost

2022 2022 2021
Budget
Actual (Unaudited) Actual
$ $ $
Cash and Cash Equivalents 825,059 746,916 661,114
Receivables 109,417 101,162 101,162
Total Financial assets measured at amortised cost 934,476 848,078 762,276

Financial liabilities measured at amortised cost

Payables 205,053 137,752 137,752

Finance Leases 18,763 27,000 27,000
Painting Contract Liability 29,601 39,468 39,468
Total Financial liabilities measured at amortised Cost 253,417 204,220 204,220

21. Events After Balance Date

There were no significant events after the balance date that impact these financial statements.

22. Comparatives

There have been a number of prior period comparatives which have been reclassified to make disclosure consistent with the current year.

18
 Crowe New Zealand Audit Partnership

173 Spey Street

Invercargill 9810
C/- Crowe Mail Centre Private Bag
90106
Invercargill 9840 New Zealand

Main +64 3 211 3355

Fax +64 3 218 2581
www.crowe.nz

INDEPENDENT AUDITOR’S REPORT

TO THE READERS OF NEW RIVER PRIMARY SCHOOL’S FINANCIAL STATEMENTS FOR THE
YEAR ENDED 31 DECEMBER 2022

The Auditor-General is the auditor of New River Primary School (the School). The Auditor-General has
appointed me, Michael Lee, using the staff and resources of Crowe New Zealand Audit Partnership, to
carry out the audit of the financial statements of the School on his behalf.

Opinion

We have audited the financial statements of the School on pages 3 to 18, that comprise the statement of
financial position as at 31 December 2022, the statement of comprehensive revenue and expense,
statement of changes in net assets/equity and statement of cash flows for the year ended on that date, and
the notes to the financial statements that include accounting policies and other explanatory information.

In our opinion the financial statements of the School:

• present fairly, in all material respects:

o its financial position as at 31 December 2022; and

o its financial performance and cash flows for the year then ended; and

• comply with generally accepted accounting practice in New Zealand in accordance with Public
Sector – Public Benefit Entity Standards Reduced Disclosure Regime.

Our audit was completed on 4 March 2024. This is the date at which our opinion is expressed.

The basis for our opinion is explained below. In addition, we outline the responsibilities of the Board and
our responsibilities relating to the financial statements, we comment on other information, and we explain
our independence.

Basis for our opinion

We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate
the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued
by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under those standards
are further described in the Responsibilities of the auditor section of our report.

We have fulfilled our responsibilities in accordance with the Auditor-General’s Auditing Standards.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.

Responsibilities of the Board for the financial statements

The Board is responsible on behalf of the School for preparing financial statements that are fairly presented
and that comply with generally accepted accounting practice in New Zealand.

Findex (Aust) Pty Ltd, trading as Crowe Australasia is a member of Crowe Global, a Swiss verein. Each member firm of Crowe Global is a separate and
independent legal entity. Findex (Aust) Pty Ltd and its affiliates are not responsible or liable for any acts or omissions of Crowe Global or any other
member of Crowe Global. Crowe Global does not render any professional services and does not have an ownership or partnership interest in Findex
(Aust) Pty Ltd.
Services are provided by Crowe New Zealand Audit Partnership an affiliate of Findex (Aust) Pty Ltd.
© 2024 Findex (Aust) Pty Ltd
The Board is responsible for such internal control as it determines is necessary to enable it to prepare
financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible on behalf of the School for assessing the
School’s ability to continue as a going concern. The Board is also responsible for disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting, unless there is an
intention to close or merge the School, or there is no realistic alternative but to do so.

The Board’s responsibilities, in terms of the requirements of the Education and Training Act 2020, arise
from section 87 of the Education Act 1989.

Responsibilities of the auditor for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in
accordance with the Auditor-General’s Auditing Standards will always detect a material misstatement when
it exists. Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud
or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the decisions of readers taken on the basis of these financial statements.

For the budget information reported in the financial statements, our procedures were limited to checking
that the information agreed to the School’s approved budget.

We did not evaluate the security and controls over the electronic publication of the financial statements.

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional
judgement and maintain professional scepticism throughout the audit. Also:

• We identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

• We obtain an understanding of internal control relevant to the audit 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 the School’s internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the Board.

• We conclude on the appropriateness of the use of the going concern basis of accounting by the
Board and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the School’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the School to
cease to continue as a going concern.

• We evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
• We assess the risk of material misstatement arising from the school payroll system, which may
still contain errors. As a result, we carried out procedures to minimise the risk of material errors
arising from the system that, in our judgement, would likely influence readers’ overall
understanding of the financial statements.

We communicate with the Board regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during
our audit.

Our responsibilities arise from the Public Audit Act 2001.

Other information

The Board is responsible for the other information. The other information comprises the Analysis of
Variance, but does not include the financial statements, and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any
form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information.
In doing so, we consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If,
based on our work, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.

Independence

We are independent of the School in accordance with the independence requirements of the Auditor-
General’s Auditing Standards, which incorporate the independence requirements of Professional and
Ethical Standard 1 International Code of Ethics for Assurance Practitioners issued by the New Zealand
Auditing and Assurance Standards Board.

Other than the audit, we have no relationship with or interests in the School.

Michael Lee
Crowe New Zealand Audit Partnership
On behalf of the Auditor-General
Invercargill, New Zealand