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WORKBRIDGE INC.

ANNUAL REPORTFor the year ended 30 June 2017

Contents Page

Vision, Mission, Values 1

Council and Board of Management 2-3

Council President’s Report 4-5

Board Chairperson's Report 6-7

Chief Executive's Report 8-10

Statement of Comprehensive Revenue and Expenditure 11

Statement of Changes in Net Assets 12

Statement of Financial Position 13

Statement of Cash Flows 14

Reconciliation of Operating Cash Flows 15

Notes to the Financial Statements 16-24

Notes to the Accounts 25-31

Training Support Financial Statement 32

Self-Start Financial Statement 33

Job Support Financial Statement 34

Auditors' Report 35-36

Vision, Mission, Values

VisionEvery person with a disability has the same value as any other person and will contribute positively in the workplace.

MissionTo enable people with disabilities to participate and experience equal opportunities in the labour market.

Values• Honesty and Integrity• Respect• Commitment • Privacy and dignity• Cultural diversity• Professionalism• Opportunity for all• Collaboration

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Workbridge Council and Board of Management

Workbridge ConstitutionThe Workbridge Constitution was adopted at a special General Meeting held in Wellington on 18 June 2001.

Governance StructureThe Governance Structure is two-tiered. The Workbridge Council is responsible for setting the overall direction for the organisation and the appointment of the Board. The Board is responsible for the governance of the organisation and the appointment of the Chief Executive Officer.

Council MembersPresident: Gaye Austin

Corporate Members:

Wendy Neilson DPA RepresentativeAppointed 24 September 2014Appointed as an Ordinary Member 27 July 2001

Barbara Burton Business New Zealand RepresentativeAppointed 28 September 2005

Kerry Davies Council of Trade Unions RepresentativeAppointed 5 December 2011Resigned 13 February 2017

Donald Neal People First RepresentativeAppointed 14 September 2012

Gaye Austin Deaf Aotearoa New Zealand RepresentativeAppointed 29 January 2014

Adrian Coysh HRINZ RepresentativeAppointed 30 January 2014

Paula Waby Blind Citizens NZ RepresentativeAppointed 12 October 2015

Stevie Stevens Kapo Maori Aotearoa NZ Inc RepresentativeAppointed 2 February 2016

Tina Mataiti Vaka Tautua Ltd RepresentativeAppointed 13 October 2016

Melissa Woolley Council of Trade Unions RepresentativeAppointed 16 February 2017

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Ordinary Members:

Rosie Macleod Appointed 15 October 2014 Resigned 1 February 2017

Board of ManagementGail Munro (Chair) Appointed 1 November 2010

Philip Griffiths Appointed 1 November 2010Retired 20 October 2016

Paul Searancke Appointed 28 August 2013Resigned 8 December 2016

Paul Sullivan Appointed 28 August 2013

David Shearer Appointed 1 August 2014Pam MacNeill Appointed 22 September 2014

Heather Browning Appointed 20 October 2016

Kerry Ludlam Appointed 20 October 2016

Tuhi Leef Appointed 20 October 2016

AuditorsCrowe Horwath New Zealand Audit Partnership

SolicitorsQuigg Partners

Chief Executive OfficerGrant Cleland Appointed 2 June 2009

National OfficeLevel 4, Dell EMC House5 Willeston StreetPO Box 2560 Wellington 6140

Telephone: 04 913-6422Facsimile: 04 913-6432Website: www.workbridge.co.nz

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http://www.workbridge.co.nz/

Council President’s Report

I will start my report with a quote I recently read (no political affiliations intended).

Social Cost of Employment:“People don’t want much-Just somewhere to live, something to do, someone to love and something to hope for.”Norman Kirk.

This is why we do what we do, as Council members and Board members. We believe every person with a disability has the same value as any other person and will contribute positively in the workplace and to participate and experience equality in opportunities in the Workplace.

We understand and appreciate the flow on effect of employment; a reason to get out of bed each day; a feeling of having a purpose; increased self-confidence and self-esteem; less poverty; less depression; and feeling part of the community. The social, economic, health, spiritual flow on effects affect all of us in our country.

We at Workbridge can be very proud of the work we do.

We are recognised as the national provider for people with disabilities seeking employment. The Cost Benefit paper has changed the perception of our organisation. We have gained support and increased investment within Government in the employment of disabled people.

This year I have seen the Workbridge organisation remain engaged, motivated and effective in the face of change. We have a record of more than 3,500 placements per annum. We have seen the positive impact of technology changes, including increased access for jobseekers. We celebrate the partnerships we have developed and the many more partnerships currently being discussed.

There was a key focus on ensuring staff and systems could respond to the changing MSD outcome payment environment, implementing a Digital Strategy, and continuing to develop new income streams. This has been done very well with organisation strengths identified at our strategy day, including staff engagement, and greater scalability through technology to use and reach both employers and jobseekers.

We celebrate establishing the Remote Service, and continue to build on this.

We celebrate the challenges we identify going forward and we turn these into opportunities. These continue; increasing our social media presence and therefore our ability to further engage with jobseekers; identifying new funding sources in order to continue to do our work; our aging workforce; and finally, the wonderful opportunity we have positioning Workbridge even further as experts for funders or employers, in the area of placing disabled people in to the workforce.

Regarding the Strategic Plan, there have been many positive and constructive discussions around how we can raise the public’s responsiveness and awareness in relation to attitudinal barriers to disabled people in the work place. We are supporting employers to become ‘disability confident workplaces’. The outcome of this will be that jobseekers will be empowered to seek employment that develops

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and reflects their qualification. Our Employer Ambassador, Selwyn Cook is doing fabulous work in this area, along with Grant Cleland, our CEO.

We look forward to the results of the Organizational Review. We celebrate that as an organisation we are constantly reviewing of processes and ways of work. The Organizational Review will look at what we do, and if this is fit for purpose to meet the needs and rights of the disabled community, within the changing funding environment?

As Council President, I attend all Workbridge Board meetings which are face to face. I applaud Workbridge, and especially Gail Munro, the Board chair, for their commitment that will ensure Workbridge is a 100% accessible organisation. We have identified limitations in the way historically things have been done, that exclude members of the Board and Council from contributing the same as others. This includes the way we format our communications for our blind and Deaf members. The exciting thing is we are recognising and taking ownership. To be truly 100% accessible for not only those within the governance and staff structure of Workbridge, but also within the disability community when they engage with Workbridge, will be truly something to celebrate.

I wish to thank the many people involved in making Workbridge the success it continues to be. Each and every one of you is important for Workbridge as it goes forward.

Thank you to the Council for your passion and commitment in all you do to support Workbridge’s aims and values, for the time you volunteer to attend Council meetings and your support. It is with sadness that Wendy Neilson will no longer hold the DPA representative position on the council. Wendy has been involved with Workbridge in a governance role since 1998. Firstly, as a DPA representative on the Board, and when the Workbridge Constitution was rewritten, joining Council as the DPA representative. Wendy has taken the role of Council President twice.

Thank you to Grant and the Senior Management Team and to the Workbridge Staff. It’s been a huge year, with many challenges. You have risen to them admirably. Your commitment and dedication is to be applauded.

Thank you to Nigel, for your efficiency in the secretarial and administrative duties you do, that keep the Council coming together so smoothly, and for the prompt and polite responses to my 101 questions I’m forever asking.

Thank you also, to Elaine for her support at Board meetings.

Thank you to the Workbridge Board. Attending the Board meetings has given me a huge appreciation of the responsibility that you hold. Thank you for your time, passion and loyalty in ensuring Workbridge stays strong and viable.

Gaye AustinPresident Workbridge Council

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Board Chairperson’s Report

Tēnā koutou katoa

It’s my pleasure to present this report to you on behalf of the Workbridge Board.

It’s been a challenging year for the Board and the staff but I’m pleased to report our first experience of a competitive tender process has been successful and we secured the Support Funds contract for three years. We are optimistic about the future of Workbridge but know there are no guarantees in a competitive tendering environment. We cannot afford to underestimate the impact on Workbridge of future changes to the national MSD contract, and the subsequent flow on to our service delivery model and geographical coverage.

This is the final year of the 2014 – 2017 Strategic Plan. Whilst satisfactory progress has been made on most goals, the quest to develop significant alternative income streams continues to evade us. Nevertheless, the pursuit of income streams separate to our MSD contract, continues to a be a priority for the Board in the medium and long term. The successful Z in Schools trial in Christchurch, the partnerships with universities for tertiary student job seekers, and the work of the Employer Ambassador with ACC are examples of emerging services with good potential for expansion.

The Strategic Plan goal to “use a range of suitable technologies to create multi-channel communications with staff, employers and job seekers” has driven the development and implementation of a digital strategy. The ICT and IT developments will ensure 24/7 access, and the pending development of portals for employers and job seekers is necessary to operate a 21st century organisation. The digital strategy and the Remote Services team reflect the Board’s commitment to meeting the employment aspirations of jobseekers who do not or cannot physically access our 22 branches. The development of a mixed service delivery model is still evolving but the foundations have been laid.

The push by the government for its departments to move from output provider contracts to those that specify outcomes has been evident for some time and this financial year we began the transition by agreeing to an outcomes milestone payment contract with MSD. The year has been characterised by uncertainty as the chief executive (CE) and his team responded to the new reporting obligations using MSD templates that were designed for significantly smaller organisations. This reporting work tested our systems and the efforts of staff, the senior management team (SMT), and the CE.

The Board is keen to ensure 100% Accessibility at every level of the organisation so that anyone can access our services, documents, and facilities. We have a moral imperative to do this, and we must also be able to demonstrate leadership to employers on how we ‘walk the talk’. 100% Accessibility has become a 2017-2018 Business Plan goal and the Board looks forward to reporting on progress next year.

We want Workbridge to be a leader in disability employment; testing ideas and developing innovative ways of delivering both employer and job seeker facing services. The forums held for jobseekers are an example of our need to continually understand, initiate and evolve excellent job seeker and employer responsive services. Our ability to undertake and lead research will be influenced by how it can

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be funded. The collection of provider data by government agencies offers the potential for future partnerships with them to undertake comparative research on successful outcomes and best practice. Alternatively, we could endeavour to raise the funds to lead our own independent research. Irrespective of the source of the resources, the Board is keen for Workbridge to be both a thought leader and a significant provider and research is one way to achieve this.

The CE restructured the organisation to assist with strengthening employer facing services and to create more opportunities for frontline staff to influence service delivery decisions. The Board and CE are now leading an organizational review which will consider the Council, Board, CE, and senior management roles, responsibilities, and relationships. The intention is to understand the leadership requirements that will assist Workbridge to be a successful and sustainable organisation.

The Board is pleased to report the financial year finished with a surplus, and take this opportunity to congratulate the CE and the SMT for successfully negotiating a 2017-2018 MSD contract which has the potential to result in significantly more income that in previous years.

I want to thank the following people:

Mike Bennetts, Lindis Jones, Anna James, and Christine Langdon of Z Energy for their support and valuable assistance

Minister Nicky Wagner for her interest in, and support of Workbridge The Workbridge Council and its President, Gaye Austin, who has worked

diligently with the Board The staff of Workbridge who have supported and delivered front line services to

employers and job seekers whilst having to make changes to their practices and procedures.

Nigel Jeffcoat and Elaine Edwards for their administrative support for the Board. The SMT who have worked tremendously hard to lead significant changes across

the organisation. Grant Cleland (CE) for his work with the Board, his work ethic, and his drive and

dedication to see Workbridge succeed.

We welcomed the appointment of Tuhi Leef, Heather Browning and Kerry Ludlam to the Board after the 2016 AGM, and we accepted with regret the resignation of Paul Searancke in December 2016. I thank the Board members for their work and loyalty, and offer my appreciation for their assistance throughout 2016-2017.

This is my last year as the chair of the Board. It’s been a privilege to have worked alongside so many talented people and I thank you all.

Gail Munro

Workbridge Board Chair

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Chief Executive’s Report

In 2016-17, Workbridge achieved these outcomes:

a. We arranged 3,005 jobs that met our Ministry of Social Development (MSD) Employment Services Contract criteria.

b. We achieved a surplus budget by maintaining a good level of Regional Contracts income, receiving income from our employer partnerships and negotiating some additional funding from MSD.

c. 57% of jobseekers enrolled with Workbridge got a job. This has steadily increased from 42.8% in 2012-13.

d. 52% of our jobseekers were placed into employment in 3 months or less, and 78% within 6 months.

e. 62.4% of our enrolments and 54.4% of our placements were with disabled people with medium to high support needs SLI rating.

f. It was pleasing to see our Conversion Rate results for disabled people who required different levels of support:

Those with Low SLI had a National Conversion Rate average of 68% Those with Medium SLI had a National Conversion Rate average of 52% Those High SLI had a National Conversion Rate average of 44%.

g. In the second half of the year, we were better able to maintain our number of Employment Consultants at 75 FTEs. We are now starting to see the benefit of having a more stable Employment Consultant workforce, as staff get used to the new MSD contract environment.

Our other achievements included:

We successfully tendered and were awarded the 3 Year Support Funds Administration Contract.

For the third year in a row, one of our Employers won the ACC Employer Attitude Award.

We made significant progress with our large employer and tertiary partnerships, and developed new services such as our Remote Service, Tertiary Service and the Z in Schools Pilot.

32% of our placements were from repeat business employers.

We made significant progress with our ICT and website upgrade and developing new communication tools such as the WAPP, Skype for Business and the use of Social Media.

Feedback received from jobseekers through our Midas Jobseeker Surveys was generally positive about our services, and complaints continued to decline.

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We made significant progress with our multimedia staff training package for induction and advancing core skills.

This year we created the foundation processes for the new MSD Employment Services Contract environment. This has been a huge piece of work and I want to thank various staff for their contribution towards this. With this new contract, we have seen a move to more of a focus on quality of service, rather than just counting the placement numbers of the old contract. Because of the additional time that we need to work with someone to achieve this quality, we have seen the total number of placements decrease, but measuring the Conversion Rate and 6-12 months continuous employment has become far more important.

It is important that we remain ahead of the game. We need to make the most of the future MSD contract environment and other business development opportunities. This will allow us to achieve income growth to improve our performance and secure our future.

This year we have negotiated Partnership Agreements with Z Energy Corporate, 23 Z Retailers, ACC Corporate, Life Unlimited, Victoria University, Prima Deli and 2 Degrees. The initial focus, particularly with the larger employers, has been to build a strategic platform that looks at how to increase the number of our jobseekers within each workplace, before setting job targets.

We are currently negotiating partnership agreement with Animates, Auckland Airport, Altogether Autism and Accor Group. Discussions are also underway with IRD, Rotary, AA Insurance, NZ Post, Councils, Spark, Canterbury/Waikato Universities and ARA. We have also spoken with various Chamber of Commerce, and this is opening other employer doors. Our partnership and endorsement by Z Energy has certainly opened the doors to other employers and we now need to capitalise on this with more jobs and income from employer facing services.

The number of jobseekers enrolled with post school qualifications has increased from 43% in 2015-16 to 52% in 2016-17. We also completed a project with Otago University where we received feedback and ideas from disabled students on the development of our tertiary service. In March 2017, we signed our first formal tertiary partnership with Victoria University Disability Support Services and Career Services. This has allowed us to develop a model for our Tertiary Service, which we are now rolling out to other tertiary institutions in 2017-18.

Through our Z Energy partnership, we completed a 12-week Z in Schools Work Experience Pilot in Christchurch. This involved four students from Papanui and Riccarton High School, Special Units. At least one student has been offered a job with the Z Retailer, and all four students completed the Z Academy e-learning/Service IQ modules and got a Level 2 qualification. This has real potential to be scaled up within Z Retailers, other employers and ITOs. The MoE, Ministers and ITOs have been very interested in this pilot as a way of creating a pathway into employment and work-based training, not currently available for this group of young disabled people in schools.

This year we also completed a local area consultation process with the disability community. This was an opportunity to test new service ideas, get feedback about our existing services and identify other opportunities. This reinforced that the disability community supports our direction and there is a need to develop other services to support those in self-employment.

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Workbridge continues to play a leadership role in the disability employment sector. This includes our involvement with the Disability Employment Forum (DEF), the Disability Confident Workplace Strategy with Business NZ and various other stakeholder reference groups.

If disabled people are to get more jobs, the Government needs to invest more in the support of disabled people into employment. While the new MSD Employment Services contracts could potentially improve funding levels, this will only resolve the underfunding that has occurred over the last decade. With MSD wanting more focus on quality of placements, potentially we will see a decrease in the number of disabled people who get jobs.

To increase the rate of employment for disabled people, we along with the Workbridge Council and our partners such as Disabled Persons Organisations, will need to advocate strongly for this increased investment.

I would like to thank the Workbridge Council, Board and the various other key stakeholders who have supported Workbridge. Your support and wisdom is invaluable. I would particularly like to mention and thank Gail Munro, our Board Chair, and Gaye Austin, our Council President, for their ongoing support.

Gail is completing her term as Board Chair this year and I know that she has worked incredibly hard in this role. We have all benefited from her skills and dedication, and she has been the driving force behind many of the positive changes we have seen at Workbridge in recent years.

I also want to thank all our wonderful staff and my National Office Team for their ongoing support, hard work and dedication. Our drive for continuous improvement allows us to continue to develop our services for disabled people and employers. 2016-17 has been a big year with many changes.

In 2017-18 and beyond, we will need to continue to build a culture that is customer focused, supportive, innovative and celebrates success. This will allow us to achieve the best results for the jobseekers and employers we work with, which I know we are all passionate about.

Grant ClelandChief Executive 18 September 2017

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Statement of Comprehensive Revenue and ExpenditureFor the Year Ended 30 June 2017

2017 2016

Revenue from Non-Exchange TransactionsSupport Funds Discretionary Fee 0 169,097MSD Grant 0 30,000Total Revenue from Non-Exchange Transactions 0 199,097Revenue from Exchange TransactionsPlacement Contract Management Fee 9,281,363 9,281,363Support Funds Contract Management Fee 500,000 518,600Compensatory Outcome Based Fee 320,000 0Regional Contract Income 335,776 390,596Other Income 72,161 13,007Total Revenue from Transactions 10,509,300 10,203,566

Total Revenue 10,509,300 10,402,663

Expenditure (Note 1)People 7,408,063 7,112,383Communication 549,198 598,605Information Management 564,267 587,426Customer Service 80,075 93,769Distribution 507,683 505,534Asset/Lease Management 1,051,581 1,071,935Corporate 328,706 412,715Total Expenditure 10,489,573 10,382,367

Financing ActivitiesInterest Income 94,250 210,294Income from Investment Fund 68,487 15,741Net Surplus (Deficit) from Finance Activities 162,737 226,035

Operating Surplus (Deficit) 182,464 246,331

Non-Operating ActivitiesGain/(Loss) on value of Investment Fund 12,264 (21,123)Gain/(Loss) on sale of assets 43,483 (717)Total Non-Operating Activities 55,747 (21,840)

Total Comprehensive Revenue and Expenditure 238,211 224,491

The Statement of Accounting Policies and Notes to the Accounts form part of, and should be read in conjunction with, these Statements of Account.

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Statement of Changes in Net AssetsFor the Year Ended 30 June 2017

Equity 2017 2016Equity at 1 July 2016 4,702,924 4,478,433Surplus (Deficit) for the year 238,211 224,491Equity at 30 June 2017 4,941,135 4,702,924


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Statement of Financial PositionAs At 30 June 2017

Current Assets 2017 2016Cash and Cash Equivalents 3,107,885 3,034,250Other Financial Assets 2,075,369 1,994,618Receivables 414,764 169,120GST 26,781 87,930Prepayments 116,646 92,892Total Current Assets 5,741,445 5,378,810

Non-Current AssetsInvestments 179,809 125,000Property, Plant and Equipment (Note 2) 376,033 408,489Total Non-Current Assets 555,842 533,489

Total Assets 6,297,287 5,912,299

Current LiabilitiesPayables 584,204 441,949Income in Advance 18,754 65,102Employee Entitlements (Note 3) 737,330 697,599Total Current Liabilities 1,340,288 1,204,650

Non-Current LiabilitiesEmployee Entitlements (Note 3) 15,864 4,725Total Liabilities 1,356,152 1,209,375

NET ASSETS 4,941,135 4,702,924Represented by:Equity 4,941,135 4,702,924

For and on Behalf of the Board

Gail Munroe Paul SullivanDate: Date:


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Statement of Cash FlowsFor the Year Ended 30 June 2017

2017 2016Cash Flows from Operating ActivitiesCash was provided from:Revenue from Non-Exchange TransactionsSupport Funds Discretionary Fee 0 169,097Interest Income 82,227 273,622Total Revenue from Non-Exchange Transactions 82,227 442,719

Revenue from Exchange TransactionsPlacement Contract Management Fee 9,281,363 9,281,363Support Funds Contract Management Fee 600,000 418,600Regional Contract Income 336,575 381,858Other Income 71,067 31,521Total Revenue from Transactions 10,289,005 10,113,342

Total Operating Revenue 10,371,232 10,556,061Cash was Disbursed to:Payments to suppliers 2,139,049 2,169,918GST 1,022,594 1,036,173Payments to employees 6,968,831 6,893,010Total Operating Disbursements 10,130,474 10,099,101

Net Cash Flows from Operating Activities 240,758 456,960Cash Flows from Investing ActivitiesCash was provided from:Sale of fixed assets 5,629 113

Cash was applied to:Purchase of fixed assets 117,943 87,242Deposit in Investment Fund 2,000,000Deposit in Term Investments 179,809Net Cash Flows To Investing Activities -292,123 -2,087,129

Net Decrease in Cash Held -51,365 -1,630,169Opening Cash Brought Forward 3,159,250 4,789,419Ending Cash Carried Forward 3,107,885 3,159,250


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Reconciliation of Operating Cash FlowsFor the Year Ended 30 June 2017

2017 2016

Net Surplus (Deficit) for the Year 238,211 224,491Add (Deduct) Non-Cash ItemsDepreciation 207,284 231,293Impairment 897Income from Investment Fund reinvested -68,487 -15,741Unrealised (Gain) Loss in value of Investment Fund -12,264 21,123Total Non-Cash Items 364,744 462,063Net Change in Working CapitalDebtors -245,643 -94,705GST 61,149 5,063Prepayments -23,754 48,746Creditors and provisions 79,740 -23,627Payroll accruals 50,870 24,318Income in Advance -46,348 35,102Movement in Working Capital -123,986 -5,103

Net Cash Flows From (To) Operating Activities 240,758 456,960


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Notes to the Financial Statements

1. Reporting EntityThese financial statements comprise the financial statements of Workbridge Incorporated for the year ended 30 June 2017.

The financial statements were authorised for issue by the Board of Directors on 28th September 2017.

Workbridge Incorporated is an incorporated society registered under the Incorporated Societies Act 1908. The Society has 21 branches throughout New Zealand with the Corporate office in Wellington.

2. Basis of Preparation

(a) Statement of complianceThe financial statements have been prepared in accordance with Tier 2 Public Benefit Entity (PBE) Financial Reporting Standards as issued by the New Zealand External Reporting Board (XRB). They comply with New Zealand equivalents to International Public Sector Accounting Standards Reduced Disclosure Regime (NZ IPSAS with RDR) and other applicable Financial Reporting Standards as appropriate to Public Benefit Entities.

The entity is eligible to report in accordance with Tier 2 PBE Accounting Standards on the basis that it does not have public accountability and annual expenditure does not exceed $30 million.

The entity is deemed a public benefit entity for financial reporting purposes, as its primary objective is to provide services to the community for social benefit and has been established with a view to supporting that primary objective rather than a financial return.

(b) Basis of measurementThe financial statements have been prepared on a historical costs basis, except for assets and liabilities that have been measured at fair value, as noted below.

The accrual basis of accounting has been used unless otherwise stated and the financial statements have been prepared on a going concern basis.

(c) Presentation currencyThe financial statements are presented in New Zealand dollars.

(d) ComparativesThese are the second set of financial statements prepared under NZ IPSAS with RDR. The net asset position and net surplus or deficit reported in comparatives is consistent with previously authorised financial statements.


These Notes to the Accounts form part of, and should be read in conjunction with, the Statements of Account.

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(e) Changes in accounting policiesThe accounting policies adopted are consistent with those of the previous financial year, the impact of new and amended standards and interpretations first applied in the 2015-16 year was limited to additional note disclosures.

3. Summary of Significant Accounting PoliciesThe accounting policies of the entity have been applied consistently to all years presented in these financial statements.

The significant accounting policies used in the preparation of these financial statements are summarised below:

(a) Cash and cash equivalentsCash and cash equivalents include cash on hand, deposits held on call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position.

(b) ReceivablesTrade debtors and other receivables are measured at their cost less any impairment losses.

An allowance for impairment is established where there is objective evidence the entity will not be able to collect all amounts due according to the original terms of the receivable.

(c) Creditors and other payablesTrade creditors and other payables are stated at cost.

(d) Property, Plant and EquipmentProperty, plant and equipment are measured at cost, less accumulated depreciation and any impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset.


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Depreciation is recognised as an expense in the reported surplus or deficit and measured on a straight value (SL) basis on all Fixed Assets over the estimated useful life of the asset at the following rates:

Furniture 5 years 20%Fixtures and fittings 5 years 20%Leasehold Improvements Current lease expiryOffice equipment 5 Years 20%Computer equipment 3 Years 33%Sundry equipment 3 to 5 Years 20 to 33 %Motor vehicles 5 Years 20%Intangible Assets 2 to 3 Years 33 to 50%

Leasehold improvements are depreciated over the unexpired period of the lease or the estimated remaining life of the improvements, whichever is shorter.

The residual value, useful life, and depreciation methods of the Fixed Assets is reassessed annually.

(e) Leased AssetsLeases where the Entity assumes substantially all the risks and rewards incidental to ownership of the leased assets, are classified as finance leases. All other leases are classified as operating leases.

Payments made under operating leases are recognised in the surplus or deficit on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease. Associated costs, such as maintenance and insurance, are expensed as incurred.

(f) Financial InstrumentsA financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument in another entity.

Financial instruments are comprised of trade debtors and other receivables, cash and cash equivalents, other financial assets, trade creditors and other payables and other financial liabilities.

Initial recognition and measurementFinancial assets and financial liabilities are recognised initially at fair value plus transaction costs attributable to the acquisition, except for those carried at fair value through surplus or deficit, which are measured at fair value.

Financial assets and financial liabilities are recognised when the reporting entity becomes a party to the contractual provisions of the financial instrument.


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Derecognition of financial instrumentsFinancial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or if the entity transfers the financial asset to another party without retaining control or substantial all risks and rewards of the asset.

A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Subsequent measurement of financial assetsThe subsequent measurement of financial assets depends on their classification, which is primarily determined by the purpose for which the financial assets were acquired. Management determines the classification of financial assets at initial recognition into one of four categories defined below, and re-evaluates this designation at each reporting date.

All financial assets except for those classified as fair value through profit or loss are subject to review for impairment at least at each reporting date. Different criteria to determine impairment are applied to each category of financial assets, which are described below.

The classification of financial instruments into one of the four categories below, determines the basis for subsequent measurement and whether any resulting movements in value are recognised in the reported surplus and deficit or other comprehensive revenue and expense.

(i) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The entity’s cash and cash equivalents, trade debtors and most other receivables fall into this category of financial instruments.

After initial recognition, such financial assets are subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Individually significant receivables are considered for impairment when they are past due or when other objective evidence is received that a specific counterparty will default. Receivables that are not considered to be individually impaired are reviewed for impairment in groups, which are determined by reference to the industry and region of a counterparty and other shared credit risk characteristics. The impairment loss estimate is then based on recent historical counterparty default rates for each identified group.


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(ii) Financial assets at fair value through surplus or deficit Financial assets at fair value through surplus or deficit include financial assets that are either classified as held for trading or that meet certain conditions and are designated at fair value through surplus or deficit upon initial recognition.

Assets in this category are measured at fair value with gains or losses recognised in the surplus or deficit for the year. The fair value of financial instruments in this category are determined by reference to active market transactions or using a valuation technique where no active market exists.

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity other than loans and receivables.

Investments are classified as held-to-maturity if the entity has the intention and ability to hold them until maturity.

Held-to-maturity investments are measured subsequently at amortised cost using the effective interest method. If there is objective evidence that the investment is impaired, determined by reference to external credit ratings, the financial asset is measured at the present value of estimated future cash flows. Any changes to the carrying amount of the investment, including impairment losses, are recognised in surplus or deficit.

(iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either designated to this category or do not qualify for inclusion in any of the other categories of financial assets. The entity’s available-for-sale financial assets include listed securities and debentures, and certain other equity investments.

Equity investments are measured at cost less any impairment charges, where the fair value cannot currently be estimated reliably.

All other available-for-sale financial assets are measured at fair value. Gains and losses are recognised in other comprehensive revenue and expenses and reported within the “available-for-sale revaluation reserve” within equity, except for impairment losses which are recognised in the surplus or deficit for the year.

When the asset is disposed of or is determined to be impaired the cumulative gain or loss recognised in other comprehensive revenue and expenses is reclassified from the equity reserve to the surplus or deficit and presented as a reclassification adjustment within other comprehensive revenue and expenses.

Interest income or dividends on available-for-sale financial assets are recognised in the surplus or deficit.


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Available-for-sale financial instruments are reviewed at each reporting date for objective evidence that the investment is impaired. Objective evidence would include a significant or prolonged decline in the fair value of the investment below its cost.

Subsequent measurement of financial liabilitiesFinancial liabilities are measured subsequently at amortised cost using the effective interest method, except for financial liabilities held for trading or designated at fair value through surplus or deficit, that are subsequently measured at fair value with gains or losses recognised in the surplus or deficit.

(g) ProvisionsA provision is recognised for a liability when the settlement amount or timing is uncertain; when there is a present legal or constructive obligation as a result of a past event; it is probable that expenditures will be required to settle the obligation; and a reliable estimate of the potential settlement can be made. Provisions are not recognised for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation.

All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.

(h) Employee entitlementsEmployee benefits, previously earned from past services, that the entity expect to be settled within 12 months of reporting date are measured based on accrued entitlements at current rate of pays.

These include salaries and wages accrued up to the reporting date and annual leave earned, but not yet taken at the reporting date.

Employees of the entity become eligible for long service leave after a certain number of years of employment, depending on their contract. The liability for long service leave is recognised and measured at a percentage of Full Value, based on entitlement date.


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(i) RevenueRevenue is recognised to the extent that it is probable that the economic benefit will flow to the entity and revenue can be reliably measured. Revenue is measured at the fair value of consideration received.

The entity assesses its revenue arrangements against specific criteria to determine if it is acting as the principal or agent in a revenue transaction. In respect of the management of the Support Funds Workbridge acts in an agency relationship and only the portion of revenue earned on the entity’s own account is recognised as gross revenue in the Statement of Comprehensive Revenue and Expense. The entity acts in an agency capacity on behalf of the Ministry of Social Development. Details of these activities are included at pages 31 to 33.

Revenue from non-exchange transactionsA non-exchange transaction is where the entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

When non-exchange revenue is received with conditions attached, the asset is recognised with a matching liability. As the conditions are satisfied the liability is decreased and revenue recognised.

When non-exchange revenue is received with restrictions attached, but no requirement to return the asset if not deployed as specified, then revenue is recognised on receipt.

Condition stipulation – funds received are required to be used for a specific purpose, with a requirement to return unused funds.

Restriction stipulation – funds received are required to be used for a specific purpose, with no requirement to return unused funds.

Grant IncomeGrant Income is recognised as revenue when received and all associated obligations have been met. Where grants have been given for a specific purpose, or with conditions attached, income is not recognised until agreed upon services and conditions have been satisfied. Government grants relating to income are recognised as income over the periods necessary to match them with the related services when performed. Grants received for which the requirements and services have not been met is treated as “income in advance” under current liabilities.

To the extent that there is a condition attached that would give rise to a liability to repay the grant amount or to return the granted asset, a deferred revenue liability is recognised instead of revenue. Revenue is then recognised only once the entity has satisfied these conditions.


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Interest IncomeInterest income is recognised as it accrues, using the effective interest method.

(j) Income TaxDue to its charitable status, the entity is exempt from income tax.

(k) Goods and Service Tax (GST)All amounts in these financial statements are shown exclusive of GST, except for receivables and payables that are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the Statement of Financial Position.

4. Significant Accounting Judgements, Estimates & AssumptionsThe preparation of financial statements in conformity with NZ IPSAS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Where material, information on significant judgements, estimates and assumptions is provided in the relevant accounting policy or provided in the relevant note disclosure.

The estimates and underlying assumptions are based on historical experience and various other factors believed to be reasonable under the circumstances. Estimates are subject to ongoing review and actual results may differ from these estimates. Revisions to accounting estimates are recognised in the year in which the estimate is revised and in future years affected.

The following are significant management judgements in applying the accounting policies of the entity that have a significant effect on the financial statements:

ImpairmentAn impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds its recoverable amount. To determine the recoverable amount, management estimates expected future cash flows from each cash-generating unit. In the process of measuring expected future cash flows management makes assumptions about future operating results. These assumptions relate to future events and circumstances.


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Fair value measurement of financial instrumentsWhen the fair value of financial assets and financial liabilities recorded in the statement of financial position cannot be measured based on quoted price in active markets, the fair value is measured using valuation techniques including the discounted cash flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

Useful lives and residual valuesThe useful lives and residual values of assets are assessed annually based on the following indicators of impairment:

-The condition of the asset based on the assessment of experts employed by the entity-The nature of the asset, its susceptibility and adaptability to changes in technology and processes-The nature of the processes in which the asset is deployed-Availability of funding to replace the asset-Changes in the market in relation to the asset


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Notes to the Accounts

1 Operating Statement

1.1 Operating LeasesWorkbridge Incorporated leases office premises on a variety of terms from 1 month to 10 years.Motor vehicles – 45 months expiring March 2021Computers – 36 months expiring June 2020

2017 2016Premises 707,447 727,145Motor Vehicles 61,964 31,328

The lease commitments are:

Premises Motor Vehicles

Computer Leases

Total 2017

Total 2016

Year 1 433,133 100,572 115,453 649,158 596,283Year 2 372,027 84,332 115,453 571,812 335,715Year 3 358,877 68,243 115,453 542,573 289,862Year 4 333,734 21,260 0 354,994 275,547Year 5-9 796,774 0 0 796,774 1,078,488

1.2 Audit FeesAudit fees of $20,750 have been paid to Crowe Horwath New Zealand Audit Partnership (2016 $20,350).

1.3 Contingent Liabilities and Capital CommitmentsContingent liabilities $125,000 to Goodman Nominees (NZ) Ltd for Auckland office lease bank guarantee (2016 Goodman $125,000) and $54,809 to DGM Business Group Ltd for Lower Hutt lease bank guarantee (2016 nil).

Capital commitments $62,748 to DGM Business Group Ltd for Lower Hutt office fitout contribution and $5000 to Top Town Ltd for New Plymouth office fitout contribution (2016 nil).

1.4 Events after the Reporting PeriodA Ministry of Social Development Employment Services Agreement was still to be received as at 30 June 2017. However a new contract was signed on 19 July 2017 and has a potential outcome agreement value of $11 million.


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1.5 Related PartiesDuring the year Workbridge paid $21,452 for consulting services to Disability Responsiveness New Zealand in which Pam MacNeill (Board Member) is a Consultant. These services were purchased on an arm’s length basis. There were no amounts outstanding to and from the company at Year End (2016 $6,400).

The entity has a related party relationship with its key management personnel. Key management personnel include the Board of Management and Senior Management.

2017 2016Board Fees 94,143 69,590Senior Management Salaries and Other short-term employee benefits

770,412 778,595

Termination Benefits 0 897Total Remuneration 864,554 849,082

Number of key management personnel 13 12

2 Detail of Fixed Assets

The breakdown of fixed assets as at 30 June 2017 is as follows:

Asset Classification Additions Depr Expense

Cost Accum Depr

Closing Book

ValueFurniture 591 9,186 80,017 52,120 27,897Fixture and Fittings 35,440 44,207 329,973 118,450 211,523Office Equipment 0 210 12,936 3,708 9,228Sundry Equipment 0 2,934 18,687 10,046 8,641Computer Equipment 526 18,707 227,927 208,033 19,894Motor Vehicles 0 128,906 692,826 672,228 20,598Intangibles 81,386 3,134 81,386 3,134 78,252Total Assets 117,943 207,284 1,443,752 1,067,719 376,033


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The breakdown of fixed assets as at 30 June 2016 is as follows:

Asset Classification Additions Depr Expense

Cost Accum Depr

Closing Book

ValueFurniture 40,933 9,386 80,830 44,339 36,491Fixture and Fittings 37,674 39,711 253,136 74,242 178,894Office Equipment 0 210 4,146 3,498 648Sundry Equipment 6,032 2,559 18,687 7,111 11,576Computer Equipment 2,603 19,697 224,508 198,762 25,746Motor Vehicles 0 159,730 829,774 674,640 155,134Total Assets 87,242 231,293 1,411,081 1,002,592 408,489

3 Employee EntitlementsPayroll accruals include employee entitlements of $688,921 (2016 $622,608) for accrued wages, holiday pay, and superannuation and are reported under: Current Liabilities Payroll Accruals $737,330 and Non-Current Liabilities Long Service Leave $15,864.

The balance of the Payroll Accruals figure includes ACC, PAYE, Student Loans, Child Support and Southern Cross $64,273 (2016 $79,716).

4 Detail of Cash and Cash EquivalentsThe carrying amount of cash and cash equivalents approximates their fair value.

Short term deposits are made for varying periods of between one to three months depending on the immediate cash requirements of the entity, and earn interest at respective short-term deposit rates.

The Cash and Cash Equivalents available for use as at 30 June 2017 is as follows:

2017 2016Petty Cash 6,300 6,300BNZ Cheque account 1,994 1,704BNZ Call account 6,009 12,067ANZ Call account 1,233,531 3,014,177Westpac Call account 10,052 2Term Investments 1,850,000 0Total Cash and Cash Equivalents 3,107,885 3,034,250


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The Cash Equivalents not available for use as at 30 June 2017 are as follows:Table Data Shown in Thousands 2017 2016Term Investment 125,000 125,000Term Investment 54,809 0Total 179,809 125,000

Term Investment of $125,000 is related to bank guarantee provided in respect of the Workbridge Auckland lease. The bank guarantee reduces on 1st May 2022 to $30,000 until expiry 30th May 2025.

Term Investment of $54,809 is related to bank guarantee provided in respect of the Workbridge Lower Hutt lease. The bank guarantee expires on 22nd February 2025.

5 Receivables from Exchange Transactions

2017 2016Trade debtors 414,764 169,120GST receivable 26,781 87,930Total 441,545 257,050Trade debtors and other receivables are non-interest bearing and receipt is normally on 30 days terms. Therefore the carrying value of trade debtors and other receivables approximates its fair value.

As at 30 June 2016 and 2017, all overdue receivables have been assessed for impairment and appropriate allowances made.

All receivables are subject to credit risk exposure.

6 Other Financial Assets

2017 2016Managed Fund 2,075,369 1,994,618Total current other financial assets 2,075,369 1,994,618

The fair value of the entity investments in Managed Funds has been determined by reference to their quoted prices at the reporting date. Gains and losses are recorded within “other gains/(losses) “, within the reported surplus or deficit.


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7 Payables Under Exchange Transactions

2017 2016Trade creditors 280,951 190,604Non-trade payables and accrued expenses 303,253 251,345Total 584,204 441,949

Trade creditors and other payables are non-interest bearing and normally settled on 30 day terms; therefore their carrying amount approximates their fair value.

8 Financial Instruments

(a) Carrying value of financial instrumentsThe carrying amount of all material financial position assets and liabilities are considered to be equivalent to fair value.

Fair value is the amount for which an item could be exchanged, or a liability settled, between knowledgeable and willing parties in an arm’s length transaction.

(b) Classification of financial instrumentsAll financial assets held by the entity that are classified as “loans and receivables” are carried at cost less accumulated impairment losses.

The carrying amounts presented in the statement of financial position relate to the following categories of financial assets and liabilities.

Financial Assets as at 30 June 2017

Asset Classification Financial assets at fair value

through surplus or

deficit

Held-to-maturity

invest-ments

Loans and receivables

Available-for-sale financial

assets

Total

Cash and cash equivalents

0 0 3,287,694 0 3,287,694

Trade debtors and other receivables

0 0 414,764 0 414,764

Other financial assets 2,075,369 0 0 0 2,075,369Total 2,075,369 0 3,702,458 0 5,777,827



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Financial Liabilities as at 30 June 2017

Liability Classification Financial liabilities

at fair value

Financial Liabilities

at amortised

cost

Total

Trade creditors and other payables 0 280,951 280,951Total 0 280,951 280,951

Financial Assets as at 30 June 2016

Asset Classification Financial assets at fair value

through surplus or

deficit

Held-to-maturity

invest-ments

Loans and receivables

Available-for-sale financial

assets

Total

Cash and cash equivalents

0 0 3,159,250 0 3,159,250

Trade debtors and other receivables

0 0 169,120 0 169,120

Other financial assets 1,994,618 0 0 0 1,994,618Total 1,994,618 0 3,328,370 0 5,322,988

Financial Liabilities as at 30 June 2016

Liability Classification Financial liabilities

at fair value

Financial Liabilities

at amortised

cost

Total

Trade creditors and other payables 0 190,604 190,604Total 0 190,604 190,604

9: Going ConcernThe primary source of income for the entity is its contracts with the Ministry of Social Development. Workbridge entered into a 12-month Employment Outcome contract with a commencement date of 1 July 2017 which was signed on 19th July 2017.



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The entity was also successful in its tender for a 3-year Support Funds Management contract however the terms of the new contract have not yet been finalised and signed and in the interim the 2016-2017 Support Funds Management Outcome Agreement has been extended until 30 September 2017. The entity will be tendering for contracts in the 2018-2019 year.

The Board of Management consider that the entity has adequate net assets available in order to continue to meet its liabilities as they fall due. The Board considers that Workbridge has sufficient reserves to meet all obligations if Workbridge activities were to be scaled down or closed in the event that, at a future date, Workbridge does not secure new contracts with the Ministry of Social Development.


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Statement of Revenue and Expenditure – Training SupportFor the Year Ended 30 June 2017

2017 2016IncomeService Contract 724,169 550,000Interest 1,311 21,218Total Income 725,480 571,218Less ExpenditureFunds paid - Training support 579,110 625,634Workbridge administration fee 179,169 150,000General expenditure 38 41Other Expense 16,832 29,210Total Expenditure 775,149 804,885

Net Surplus (Deficit) -49,669 -233,667Net Surplus (Deficit) brought forward 54,478 288,145Net Surplus (Deficit) carried forward 4,809 54,478

As at balance date the Training Support Scheme has $24,508 in the bank less creditors of $19,699. $348,698 was committed for subsequent payment to applicants in anticipation of Support Funds funding continuity.

In respect of the management of the Support Funds Workbridge acts in an agency relationship and only the portion of revenue earned on the entity's own account is recognised as gross revenue in the Statement of Comprehensive Revenue and Expense on page 10.

In respect of the information included on this page Workbridge acts in an agency capacity on behalf of the Ministry of Social Development.


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Statement of Revenue and Expenditure – Self StartFor the Year Ended 30 June 2017

2017 2016IncomeService Contract 35,834Interest 132 2,746Total Income 35,966 0Less ExpenditureFunds paid – Self start 3,937 1,007Workbridge administration fee 35,834 30,000General expenditure 40 39Other Expense 2,179 3,962Total Expenditure 41,990 35,008

Net Surplus (Deficit) -6,024 -32,262Net Surplus (Deficit) brought forward 15,470 47,732Net Surplus (Deficit) carried forward 9,446 15,470

As at balance date the Self Start Scheme has $9,446 in the bank. $1,375 was committed for subsequent payment to applicants.




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Statement of Revenue and Expenditure – Job SupportFor the Year Ended 30 June 2017

2017 2016IncomeService Contract 4,514,998 5,460,465Interest 13,710 102,095Total Income 4,528,708 5,562,560Less ExpenditureFunds paid – Job support 5,420,953 5,257,631Workbridge administration fee 359,998 301,390General expenditure 80 40Other Expense 80,989 135,925Total Expenditure 5,862,020 5,694,986

Net Surplus (Deficit) -1,333,312 -132,426Net Surplus (Deficit) brought forward 1,381,685 1,514,111Net Surplus (Deficit) carried forward 48,373 1,381,685

As at balance date the Job Support Scheme has $220,870 in the bank less creditors of $172,497. $4,375,490 was committed for subsequent payment to applicants in anticipation of Support Funds funding continuity.




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Vision - Workbridge · Web viewWe also completed a project with Otago University where we received...

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Transcript of Vision - Workbridge · Web viewWe also completed a project with Otago University where we received...