JAMES HARGEST COLLEGE FOR THE YEAR ENDED 31 … · 2019. 7. 2. · 271,402 6,793 278,195 258,827 12,575 271,402 258,827 12,575 271,402 6,562,248 The Reserve is designated funds for

JAMES HARGEST COLLEGE

JAMES HARGEST COLLEGE KEEP FAITH

ANNUAL REPORT

FOR THE YEAR ENDED31 DECEMBER 2018

Ministry Number: 552

Principal: Andrew Wood

Accountant: Crowe Horwath

JUNIOR CAMP US6 Layard StreetInvercargill, New ZealandTelephone 03 217 9250Facsimile 03 217 3152 Email; [email protected]

SENIOR CAMPUS288 Layard Street

Invercargill, New ZealandTelephone 03 217 6129

Facsimile 03 217 0351

James Hargest College

Annual Report - For the year ended 31 December 2018

Index

Page Statement

Financial Statements

1 Statement of Responsibility

2 Statement of Comprehensive Revenue and Expenses

3 Statement of Changes in Net Assets/Equity

4 Statement of Financial Position

5 Statement of Cash Flows

6-10 Statement of Accounting Policies

11-23 Notes to the Financial Statements

Other Information

24 Kiwisport

25 List of Board of Trustees

26 Analysis of Variance

Independent Auditor's Report


Statement of Responsibility

For the year ended 31 December 2018

The Board of Trustees (the Board) has pleasure in presenting the annual report of James Hargest Collegeincorporating the financial statements and the auditor's report, for the year ended 31 December 2018.

The Board of Trustees accepts responsibility for the preparation of the annual financial statements and thejudgements used in these financial statements.

The management (including the principal and others as directed by the Board) accepts responsibility forestablishing and maintaining a system of internal controls designed to provide reasonable assurance as to theintegrity and reliability of the school's financial reporting.

It is the opinion of the Board and management that the annual financial statements for the financial year ended31 December 2018 fairly reflects the financial position and operations of the school.

The School's 2018 financial statements are authorised for issue by the Board Chairperson and the Principal.

CiA(Us<o(^<t (r(oi^</ /+><$^><Z^vJ kJ^^>$^€=vJFull Name of Board CJîrp6rson , Full Name of Principal

^-^-Sigpafure of Board Chairperson Signature of Principal

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Date: ^ Date:

James Hargest College Annual Report and Financial Statements


Statement of Comprehensive Revenue and ExpenseFor the year ended 31 December 2018

RevenueGovernment GrantsLocally Raised FundsInterest EarnedInvercargill Activity CentreInternational StudentsMurihiku Young Parents Learning CentreGain on Disposal of Property, Plant and EquipmentGain on Disposal of Investments

ExpensesLocally Raised FundsInvercargill Activity CentreInternational StudentsLearning ResourcesAdministration

PropertyMurihiku Young Parents Learning CentreDepreciationLoss on Disposal of Property, Plant and EquipmentLoss on Disposal of Investments

Net Surplus / (Deficit) for the year

Unrealised Gain on Revaluation of InvestmentsUnrealised Loss on Revaluation of Investments

Total Comprehensive Revenue and Expense for the Year

Notes

23

45

22

2018

Actual

15,528,0701,186,091

224,784106,454815,815203,882

12,968

2018Budget

(Unaudited)

3,424,644802,344219,996

98,076511,140202,830

2017

Actual

16,036,1751,152,008

210,40599,146

502,168202,829

3049,133

345678

229

18,078,064

950,49891,647

394,49911,865,102

842,4573,190,764

197,090474,469

23,5645,650

18,035,740

42,324

24,197

(2,151)

64,371

5,259,030

725,26798,076

294,4801,466,2441,091,8441,192,764

202,830426,000

5,497,505

(238,475)

(238,475)

18,212,167

966,87380,486

313,56412,179,742

1,072,3213,136,042

190,254503,944

2,362

18,445,588

(233,421)

48,005

(5,575)

(190,991)

The above Statement of Comprehensive Revenue and Expense should be read in conjunction with the

accompanying notes.



Statement of Changes in Net Assets/EquityFor the year ended 31 December 2018

Notes

Actual

2018

Budget(Unaudited)

2018

Actual

2017

Balance at 1 January

Total comprehensive revenue and expense for the year

Capital Contributions from the Ministry of EducationContribution - Furniture and Equipment Grant

Change in treatment of Teen Parent Unit

Equity at 31 December

31

6,562,248 6,562,248

64,371

1,665

6,494,412

(238,475) (190,991)

258,827

6,628,285 6,323,773 6,562,248

Retained Earnings

Reserve - Teen Parent Unit

Opening balanceSurplus for the yearClosing balance

Equity at 31 December

6,350,090

6,628,285

6,052,372

6,323,773

6,290,846

271,4026,793

278,195

258,82712,575

271,402

258,82712,575

271,402

6,562,248

The Reserve is designated funds for the Teen Parent Unit. Refer to Note 22.

The above Statement of Changes in Net Assets/Equity should be read in conjunction with the accompanyingnotes.

James Hargest College Annual Report and Financial Statements Page3

:LO:::^FO€QIL


Statement of Financial PositionAs at 31 December 2018

Current Assets

Cash and Cash EquivalentsAccounts Receivable

PrepaymentsInventories

Investments

Current LiabilitiesGST PayableAccounts PayableRevenue Received in Advance

Provision for Cyclical MaintenancePainting Contract Liability - Current PortionFinance Lease Liability - Current PortionFunds held in TrustFunds held for Capital Works Projects

Working Capital Surplus / (Deficit)

Non-current Assets

Investments (more than 12 months)Property, Plant and Equipment

Non-current Liabilities

Provision for Cyclical MaintenanceFinance Lease Liability

Net Assets

Equity

Notes

1011

1213

2018 2018Budget

Actual (Unaudited)

1,385,658808,79628,029

6,0501,461,208

1,363,524827,17728,052

7,2312,028,682

2017

Actual

1,175,999827,17728,052

7,2312,028,682

15161718192021

1314

1719

3,689,741

112,2691,363,178

686,886131,214

5,02753,428

427,3303,191

2,782,523

907,218

3,704,5002,454,612

6,159,112

374,71363,332

438,045

6,628,285

6,628,285

4,254,666

92,9011,325,609

493,04165,473

20,406393,024123,755

2,514,208

1,740,458

2,919,4932,060,877

4,980,370

374,24022,816

397,056

6,323,773

6,323,773

4,067,141

92,9011,325,609

493,04165,473

20,405393,024123,755

2,514,206

1,552,934

2,919,4932,486,877

5,406,370

374,24022,816

397,056

6,562,248

6,562,248

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

James Hargest College Annual Report and Financial Statements Page 4

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Statement of Cash FlowsFor the year ended 31 December 2018

Cash flows from Operating ActivitiesGovernment Grants

Locally Raised FundsInvercargill Activity CentreInternational StudentsGoods and Services Tax (net)Payments to EmployeesPayments to SuppliersInterest PaidInterest ReceivedFunds Administered on Behalf of Third Parties

Net cash from / (to) the Operating Activities

Cash flows from Investing ActivitiesPurchase of PPE (and Intangibles)Purchase of InvestmentsProceeds from Sale of Investments

Net cash from / (to) the Investing Activities

Cash flows from Financing ActivitiesFurniture and Equipment GrantFinance Lease PaymentsPainting Contract Payments

Net cash from Financing Activities

Net increase/(decrease) in cash and cash equivalents

Note Actual$

3,610,9231,305,831

106,454870,605

19,368(2,507,263)(2,694,590)

(414)216,184(86,258)

840,841

(390,910)(712,560)511,425

(592,044)

1,665(40,801)

(39,136)

209,659

2018Budget

(Unaudited)$

3,506,148814,920

3,996511,140

(1,111,200)(3,756,971)

(504)219,996

187,526

187,525

2017

Actual$

3,619,8851,167,508

99,146651,163

565(2,914,283)(2,227,341)

(306)211,701139,129

747,168

(357,701)(301,056)327,342

(331,415)

25,623(37,451)

(11,828)

403,925

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

10

10

1,175,999 1,175,999

1,385,659 1,363,524

772,074

1,175,999

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

The Funds Administrated on Behalf of Third Parties shown in Operating Activities includes the net movement in funds held onbehalf of the Ministry of Education for capital works projects. The school acts as intermediary for the receipt and expenditure ofthese funds on assets, which ultimately are owned by the Ministry of Education.

The above Cash Flow Statement should be read in conjunction with the accompanying notes.


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Notes to the Financial Statements

1. Statement of Accounting PoliciesFor the year ended 31 December 2018

a) Reporting EntityJames Hargest College (the School) is a Crown entity as specified in the Crown Entities Act 2004 and a school as described in theEducation Act 1989. The Board of Trustees (the Board) is of the view that the School is a public benefit entity for financial reporting

purposes.

b) Basis of Preparation

Reporting PeriodThe financial reports have been prepared for the period 1 January 2018 to 31 December 2018 and in accordancewith the requirements of the Public Finance Act 1989.

Bas/s of PreparationThe financial statements have been prepared on a going concern basis, and the accounting policies have been consistently appliedthroughout the period.

Financial Reporting Standards AppliedThe Education Act 1989 requires the School, as a Crown entity, to prepare financial statements in accordance with generallyaccepted accounting practice. The financial statements have been prepared in accordance with generally accepted accountingpractice in New Zealand, applying Public Sector Public Benefit Entity (PBE) Standards Reduced Disclosure Regime as appropriateto public benefit entities that qualify for Tier 2 reporting. The school is considered a Public Benefit Entity as it meets the criteriaspecified as "having a primary objective to provide goods and/or services for community or social benefit and where any equity hasbeen provided with a view to supporting that primary objective rather than for financial return to equity holders".

PBE Accounting Standards Reduced Disclosure RegimeThe School qualifies for Tier 2 as the school is not publicaly accountable and is not considered large as it falls below theexpenditure threshhold of $30 million per year. Alhelevant reduced disclosure concessions ha\e been taken.

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

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

Specific Accounting PoliciesThe 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 theapplication of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differfrom these estimates.

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

Useful lives of Property, Plant and EquipmentThe School reviews the estimated useful lives of property, plant and equipment at the end of each reporting date. The Schoolbelieves that the estimated useful lives of the property, plant and equipment as disclosed in the Significant Accounting Policies areappropriate to the nature of the property, plant and equipment at reporting date. Property, plant and equipment is disclosed at note14.


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Critical Judgements in Applying Accounting PoliciesManagement has exercised the following critical judgements in applying accouting policies:

Classification of LeasesThe School reviews the details of lease agreements at the end of each reporting date. The School believes the classification ofeach lease as either operation or finance is appropriate and reflects the nature of the agreement in place. Finance leases aredisclosed at note 19.

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

c) Revenue Recognition

Government GrantsThe 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 isreceived.

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

Use of land and buildings grants are recorded as revenue in the period the School uses the land and buildings. These are notreceived in cash by the School as they equate to the deemed expense for using the land and buildings which are owned by theCrown.

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

Donations, Gifts and BequestsDonations, gifts and bequests are recorded as revenue when their receipt is formally acknowledged by the School.

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

d) Use of Land and Buildings ExpenseThe property from which the School operates is owned by the Crown and managed by the Ministry of Education on behalf of theCrown. The School's use of the land and buildings as occupant is based on a property occupancy document as gazetted by theMinistry. 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 expense that is offset by a non-cash grant from the Ministry.

e) Operating Lease PaymentsPayments made under operating leases are recognised in the Statement of Comprehensive Revenue and Expense on a straightline basis over the term of the lease.

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

g) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, bank balances, deposits held at call with banks, and other short term highly liquidinvestments with original maturities of 90 days or less, and bank overdrafts. The carrying amount of cash and cash equivalents

represent fair value.

h) Accounts ReceivableAccounts Receivable represents items that the School has issued invoices for or accrued for, but has not received payment for atyear end. Receivables are initially recorded at fair value and subsequently recorded at the amount the School realistically expectsto receive. A receivable is considered uncollectable where there is objective evidence the School will not be able to collect allamounts due. The amount that is uncollectable (the provision for uncollectibility)is the difference between the amount due and thepresent value of the amounts expected to be collected.

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i) InventoriesInventories are consumable items held for sale and comprise of stationery and canteen supplies. They are stated at the lower ofcost and net realisable value. Cost is determined on a first in, first out basis. Net realisable value is the estimated selling price inthe ordinary course of activities less the estimated costs necessary to make the sale. Any write down from cost to net realisablevalue is recorded as an expense in the Statement of Comprehensive Revenue and Expense in the period of the write down.

j) InvestmentsBank term deposits for periods exceeding 90 days are classified as investments and are initiallymeasured at the amount invested.Interest is subsequently accrued and added to the investment balance. After initial recognition bank term deposits are measuredat amortised cost using the effective interest method less impairment.

Investments that are shares are categorised as "available for sale" for accounting purposes in accordance with financial reportingstandards. Share investments are recognised initially by the School at fair value plus transaction costs. At balance date the Schoolhas assessed whether there is any evidence that an investment is impaired. Any impairment, gains or losses are recognised in theStatement of Comprehensive Revenue and Expense.

After initial recognition any investments categorised as available for sale are measured at their fair value without any deduction fortransaction costs the school may incur on sale or other disposal.

The School has met the requirements under Schedule 6 Section 28 of the Education Act 1989 in relation to the acquisition ofinvestment securities.

k) Property, Plant and EquipmentLand and buildings owned by the Crown are excluded from these financial statements. The Board's use of the land and buildingsas 'occupant' is based on a property occupancy document.

Improvements to buildings owned by the Crown 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, lessaccumulated depreciation and impairment losses. Cost or fair value as the case may be, includes those costs that relate directlyto bringing the asset to the location where it will be used and making sure it is in the appropriate condition for its intended use.

Property, plant and equipment acquired with individualvalues under $500 are not capitalised, they are recognised as an expense inthe Statement of Comprehensive Revenue and Expense.

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

Leased AssetsLeases where the School assumes substantially all the risks and rewards of ownership are classified as finance leases. Theassets acquired by way of finance lease are measured at an amount equal to the lower of their fair value and the present value ofthe minimum lease payments at inception of the lease, less accumulated depreciation and impairment losses. Leased assets andcorresponding liability are recognised in the Statement of Financial Position and leased assets are depreciated over the period theSchool is expected to benefit from their use or over the term of the lease.

DepreciationProperty, 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 ofComprehensive Revenue and Expense

The estimated useful lives of the assets are:Buildings 50 yearsMotor Vehicles 3 -10 yearsFurniture 5 - 20 yearsMajor Equipment 5 - 20 yearsElectronic Equipment 5 yearsPlant 5-10 yearsSports Equipment 5 yearsMinor Equipment 5-10 yearsGym Social Centre 50 yearsLibrary Resources 12.5% per annumLeased Assets held under a Finance Lease 4 years


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I) Intangible Assets

Software CostsComputer software acquired by the School is capitalised on the basis of the costs incurred to acquire and bring to use the specificsoftware. Costs associated with subsequent maintenance or licensing of software are recognised as an expense in the Statementof Comprehensive Revenue and Expense when incurred.

Computer software licences with individual values under $500 are not capitalised, they are recognised as an expense in theStatement of Comprehensive Revenue and Expensewhen incurred.

Computer software that the school receives from the Ministry of Education is normally acquired through a non-exchangetransaction and is not of a material amount. It's fair value can be assessed at time of acquisition if no other methods lead to a fairvalue determination. Computer software purchased directly from suppliers at market rates are considered exchange transactionsand the fair value is the amount paid for the software.

The carrying value of software is amortised on a straight line basis over its useful life. The useful life of software is estimated asthree years. The amortisation charge for each period and any impairment loss is recorded in the Statement of ComprehensiveRevenue and Expense.

m) Impairment of Property, Plant, and Equipment and Intangible AssetsJames Hargest College does not hold any cash generating assets. Assets are considered cash generating where their primaryobjective is to generate a commercial return.

Non-Cash Generating AssetsProperty, plant, and equipment and intangible assets held at cost that have a finite useful life are reviewed for impairmentwhenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss isrecognised for the amount by which the asset's carrying amount exceeds its recoverable service amount. The recoverable serviceamount 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 costapproach, or a service units approach. The most appropriate approach used to measure value in use depends on the nature of theimpairment and availability of information.

If an asset's carrying amount exceeds its recoverable sen/ice amount, the asset is regarded as impaired and the carrying amountis written down to the recoverable amount. The total impairment loss is recognised in the surplus or deficit.

The reversal of an impairment loss is recognised in the surplus or deficit.

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

o) Employee Entitlements

Short-Term Employee EntitlementsEmployee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the relatedservice are measured based on accrued entitlements at current rates of pay. These include salaries and wages accrued up tobalance date, annual leave earned to but not yet taken at balance date.

Long-Term Employee EntitlementsEmployee benefits that are due to be settled beyond 12 months after the end of the period in which the employee renders therelated service, such as long sen/ice leave and retirement gratuities, have been calculated on an actuarial basis. The calculationsare based on:

• likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach thepoint of entitlement, and contractual entitlement information; and

• the present value of the estimated future cash flows

p) Revenue Received in AdvanceRevenue received in advance relates to fees received from international students and grants received where there are unfulfilledobligations for the School to provide services in the future. The fees are recorded as revenue as the obligations are fulfilled and the

fees earned.


n "ARGIl.L

The School holds sufficient funds to enable the refund of unearned fees in relation to international students, should the School beunable to provide the services to which they relate.

q) Funds Held in TrustFunds are held in trust where they have been received by the School for a specified purpose, or are being held on behalf of a thirdparty and these transactions are not recorded in the Statement of Revenue and Expense. The School holds sufficient funds toenable the funds to be used for their intended purpose at any time.

r) Shared FundsShared Funds are held on behalf of a cluster of participating schools as agreed with the Ministry of Education. The cluster ofschools operate activities outside of school control. These amounts are not recorded in the Statement of Revenue and Expense.The School holds sufficient funds to enable the funds to be used for their intended purpose.

s) Provision for Cyclical MaintenanceThe property from which the School operates is owned by the Crown, and is vested in the Ministry. The Ministry has gazetted aproperty occupancy document that sets out the Board's property maintenance responsibilities. The Board is responsible formaintaining the land, buildings and other facilities on the School site in a state of good order and repair.

Cyclical maintenance, which involves painting the interior and exterior of the School, makes up the most significant part of theBoard's responsibilitiesoutside day-to-day maintenance. The provision for cyclical maintenance represents the obligation the Boardhas to the Ministry and is based on the Board's ten year property plan (10YPP).

t) Financial Assets and LiabilitiesThe School's financial assets comprise cash and cash equivalents, accounts receivable, and investments. All of these financialassets, except for investments that are shares, are categorised as "loans and receivables" for accounting purposes in accordancewith financial reporting standards.

Investments that are shares are categorised as "available for sale" for accounting purposes in accordance with financial reportingstandards.

The School's financial liabilities comprise accounts payable, borrowings, finance lease liabilities, and painting contract liabilities. Allof these financial liabilities are categorised as "financial liabilities measured at amortised cost" for accounting purposes inaccordance with financial reporting standards.

u) BorrowingsBorrowings are recognised at the amount borrowed. Borrowings are classified as current liabilities unless the School has anunconditional right to defer settlement of the liability for at least 12 months after thdoalance date.

v) Goods and Services Tax (GST)The financial statements have been prepared on a GST exclusive basis, with the exception of accounts receivable and accountspayable 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, isclassified as a net operating cash flow in the statements of cash flows.

Commitments and contingencies are disclosed exclusive of GST.

w) Budget FiguresThe budget figures are extracted from the School budget that was approved by the Board at the start of the year

x) Services Received In-KindFrom time to time the School receives services in-kind, including the time of volunteers. The School has elected not to recogniseservices received in kind in the Statement of Comprehensive Revenue and Expense.


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2. Government Grants

Operational GrantsTeachers' Salaries Grants

Use of Land and Buildings GrantsSpecial Needs GrantsOther Government Grants

2018

Actual$

3,083,9039,957,9032,075,520

290,839119,906

15,528,070

2018Budget

(Unaudited)$

3,123,432

254,98846,224

3,424,644

2017

Actual$

3,183,67410,310,0202,100,330

246,855195,295

16,036,175

3. Locally Raised Funds

Local funds raised within the School's community are made up of:

Revenue

Donations

FundraisingBequestsGrantsTrading RevenueActivities RevenueOverseas Travel Revenue

Other Locally Raised Funds RevenueGeneral

Levies

Hargest Centre

Expenses

Trading ExpenseActivities ExpenseOverseas Travel Expense

Hargest CentreOther Locally Raised Funds Expenditure

Surplus for the year Locally Raised Funds

2018

Actual$

82,77119,168

38,446136,235404,22339,767

319,72127,31669,84548,601

1,186,091

124,643422,57040,97219,080

343,234

950,498

235,593

2018Budget

(Unaudited)$

64,20024,996

222,996237,658

30,613108,493

3,50455,38054,504

802,344

222,120337,962

14,50123,904

126,780

725,267

77,077

2017

Actual$

67,14430,796

190,686301,189128,559303,836

35,74643,65750,394

1,152,008

178,880350,407120,88722,532

294,165

966,873

185,135

During the current reporting period, overseas travel was incurred by students for a science trip to Australia for educational purposes.


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4. Invercargill Activity Centre Revenue and Expenses

Revenue

Activity Centre IncomeGovernment Operational GrantOther Grants

Expenses

Course Costs

Fixed Assets Purchased/Capitalised ExpenditureMaintenance Costs

Motor Vehicle ExpensesOther ExpensesWages

Surplus for the year Invercargill Activity Centre

2018

Actual$

9,48494,0812,890

106,454

7,3492,332

31,5562,138

20,59427,679

91,647

14,808

2018Budget

(Unaudited)$

3,99694,080

98,076

11,56813,08026,3402,064

20,02824,996

98,076

2017

Actual

6,35792,789

99,146

7,8461,334

25,4321,598

17,12827,148

80,486

18,660

5. International Student Revenue and Expenses

International Student Roll (FTEs)

Revenue

International Student Fees

Expenses

Advertising, Marketing and PromotionCommissions

General Expenses

Insurance

International Student LevyOther LeviesEmployee Benefit - Salaries

Surplus for the year International Students'

2018

ActualNumber

46

2018

Actual

2018Budget

(Unaudited)Number

2018Budget

(Unaudited)

2017

ActualNumber

35

2017

Actual

815,815 511,140 502,168

30,733114,878

14,82128,24914,721

1,500189,598

394,499

421,316

33,50445,00017,78418,45612,996

828165,912

294,480

216,660

29,18075,26519,83012,92813,4102,790

160,160

313,564

188,604


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6. Learning Resources

Curricular

STAR FundingEquipment RepairsEmployee Benefits - SalariesStaff Professional DevelopmentAttached Unit - Student Support CentreAttached Unit - Itinerant Music

2018

Actual$

252,65924,80824,665

11,476,55961,17812,27712,957

11,865,102

2018Budget

(Unaudited)$

318,32428,89623,184

997,80067,44011,79618,804

1,466,244

2017

Actual

278,16920,81231,061

11,720,78393,17820,59015,149

12,179,742

7. Administration

Audit FeesBoard of Trustees Fees

Board of Trustees Expenses

Bad Debts ExpenseCommunication

Consumables

Operating LeaseOther Admin CostsEmployee Benefits - Salaries

Service Providers, Contractors and Consultancy

2018

Actual$

9,7888,6084,283

41418,93826,81615,176

204,892550,186

3,357

842,457

2018Budget

(Unaudited)$

8,7968,4009,012

50419,95654,55218,600

247,296703,72821,000

1,091,844

2017

Actual$

8,7777,7588,750

30620,73134,72544,861

229,322711,293

5,798

1,072,321

8. Property

Caretaking and Cleaning ConsumablesConsultancy and Contract ServicesCyclical Maintenance ExpenseGrounds

Heat, Light and WaterInsurance

Rates

Repairs and MaintenanceUse of Land and BuildingsSecurityProperty Employee Benefits - Salaries

2018

Actual$

59,742234,424161,94234,379

201,93030,73511,372

160,8162,075,520

14,237205,666

3,190,764

2018Budget

(Unaudited)$

58,044227,508

80,00434,104

192,39638,85618,000

282,276

20,016241,560

1,192,764

2017

Actual$

63,947211,804

11,74936,058

196,68831,46315,472

230,2162,100,330

18,924219,393

3,136,042

The use of land and buildings figure represents 8% of the school's total property value. This is used as a 'proxy' for the market rentalof the property. Property values are established as part of the nation-wide revaluation exercise that is conducted every 30 June forthe Ministry of Education's year-end reporting purposes.


ir'i -"^ a p.

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9. Depreciation of Property, Plant and Equipment

Buildings - SchoolMotor VehiclesFurniture

Major EquipmentElectronic EquipmentPlantSports EquipmentMinor EquipmentGym Social CentreLibrary Resources

Leased Assets held under Finance Lease

2018

Actual$

14,15533,32969,443

7,049240,981

6,6219,819

27,65920,404

1,96243,047

474,469

2018Budget

(Unaudited)

14,00033,00069,000

7,000190,000

6,0009,000

27,00020,0008,000

43,000

426,000

2017

Actual$

14,15537,23869,921

6,362240,085

6,0469,931

75,67520,448

9,13314,950

503,944

10. Cash and Cash Equivalents

Cash on HandBank Current Account

Short-term Bank Deposits with a Maturity of 90 Days or Less

Cash equivalents and bank overdraft for Cash Flow Statement

2018

Actual$

420291,748

1,093,490

1,385,658

2018Budget

(Unaudited)$

560438,549924,415

1,363,524

2017

Actual

560251,024924,415

1,175,999

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

Of the $1,825,492 Cash and Cash Equivalents, $3,191 is held by the School on behalf of the Ministry of Education (2017: $123,755).These funds are required to be spent next year on Crown owned school buildings under the School's Five Year Property Plan.

11. Accounts Receivable

DebtorsDebtor Ministry of EducationInterest Accrued

Teacher Salaries Grant Receivable

Receivables from Exchange TransactionsReceivables from Non-Exchange Transactions

2018

Actual

$

97,271

2,57023,103

685,852

808,796

120,374688,423

808,796

2018Budget

(Unaudited)$

145,132

14,502667,542

827,177

159,633667,543

827,177

2017

Actual

$

72,09873,03414,502

667,542

827,177

86,600740,577

827,177


<0^7^nCA!?Gll

Page 14

12. Inventories

StationeryCanteen

2018

Actual$

6,050

6,050

2018Budget

(Unaudited)

7,231

7,231

2017

Actual$

6,1481,083

7,231

13. Investments

The School's investment activities are classified as follows:

Current AssetShort-term Bank Deposits with Maturities Greater than 90 days and No Greaterthan One Year

Non-Current Asset

Long-term Bank Deposits with Maturities Greater than One Year

2018 2018 2017Budget

Actual (Unaudited) Actual

1,461,208 2,028,682 2,028,682

3,704,500 2,919,493 2,919,493

5,165,707 4,948,175 4,948,175

The carrying value of long term deposits longer than 12 months approximates their fair value at 31 December 2018.

14. Property, Plant and Equipment

2018

BuildingsMotor VehiclesFurniture


Leased Assets held under Finance Le

Balance at 31 December 2018

OpeningBalance (NBV)

$

502,41880,623

671,76420,186

611,16534,56030,091

117,083319,33057,84041,817

2,486,877

Additions

$

51,98058,80544,663

132,58514,8662,774

27,158

20,339114,340

467,509

Disposals

$

(1,419)(4,056)

(19,829)

(25,304)

Impairment Depreciation

$

(14,155)(33,329)(69,443)

(7,049)(240,981)

(6,621)(9,819)

(27,659)(20,404)

(1,962)(43,047)

Total (NBV)

$

488,26399,274

661,12657,800

501,34938,74823,046

116,582298,926

56,388113,110

^474,469) 2,454,612


s^yo ^f' ^.CARai.L

Page 15

2018

BuildingsMotor VehiclesFurnitureMajor EquipmentElectronic EquipmentPlant

Sports EquipmentMinor EquipmentGym Social CentreLibrary Resources



Cost or

Valuation

$

707,737284,806

1,561,944640,231

2,513,248100,648224,161323,226839,300145,278175,837

7,516,416

AccumulatedDepreciation

$

(219,474)(185,532)(900,818)(582,431)

(2,011,900)(61,899)

(201,116)(206,644)(540,374)

(88,891)(62,727)

(5,061,804)

Net BookValue

488,26399,274

661,12657,800

501,34938,74923,046

116,582298,926

56,388113,109

2,454,612

2017

BuildingsMotor VehiclesFurnitureMajor EquipmentElectronic EquipmentPlantSports EquipmentMinor EquipmentGym Social CentreLibrary ResourcesLeased Assets held under Finance Le

OpeningBalance (NBV)

$

516,57297,426

706,23026,548

655,56826,11032,118

165,324339,77852,35117,153

Additions$

26,52235,455

210,74614,4967,903

27,434

16,98439,615

Disposals$

(6,087)

(15,063)

(2,362)

Disposals Impairment Depreciation Total (NBV)

Balance at 31 December 2017 2,635,178 379,155 (23,512)

(14,155)(37,238)(69,921)

(6,362)(240,085)

(6,046)(9,931)

(75,675)(20,448)(9,133)

(14,950)

502,41880,623

671,76420,186

611,16534,56030,091

117,083319,330

57,84041,817

(503,944) 2,486,877

2017

BuildingsMotor VehiclesFurniture




Cost or

Valuation$

707,737286,141

1,503,139595,567

2,383,47398,217

221,387296,793839,300203,705

61,496

7,196,955

Accumulated

Depreciation$

(205,319)(205,517)(831,375)(575,382)

(1,772,307)(63,657)

(191,297)(179,709)(519,970)(145,866)

(19,679)

(4,710,078)

Net BookValue

$

502,41880,623

671,76420,186

611,16634,56030,091

117,083319,33057,84041,816

2,486,877

The net carrying value of electronic equipment under a finance lease is $113,109 (2017: $41,817).


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15. Accounts Payable

Operating CreditorsAccruals

Banking Staffing OveruseEmployee Benefits Payable - SalariesEmployee Benefits Payable - Leave Accrual

2018

Actual

$

243,73329,740

238,783808,27642,647

1,363,178

2018Budget

(Unaudited)$

269,15828,877

193,905782,74950,920

1,325,609

2017

Actual

269,15828,877

193,905782,749

50,921

1,325,609

Payables for Exchange Transactions

The carrying value of payables approximates their fair value.

16. Revenue Received in Advance

1,363,178 1,325,609 1,325,609

1,363,178 1,325,609 1,325,609

Grants in Advance - Ministry of EducationInternational Student FeesSport and Cultural FundraisingJames Hargest PTA

2018

Actual$

55,151464,426156,576

10,733

686,886

2018Budget

(Unaudited)$

48,432409,636

37,145(2,172)

493,041

Actual

48,432409,636

37,145(2,172)

493,041

17. Provision for Cyclical Maintenance

Provision at the Start of the YearIncrease to the Provision During the YearAdjustment to the ProvisionUse of the Provision During the Year

Provision at the End of the Year

Cyclical Maintenance - Current

Cyclical Maintenance - Term

2018

Actual$

439,713156,915

(90,701)

505,927

131,214374,713

505,927

2018Budget

(Unaudited)$

439,71346,752

(46,752)

439,713

65,473374,240

439,713

2017

Actual$

449,34331,709

(21,139)(20,200)

439,713

65,473374,240

439,713

The Board has a cash management plan to ensure that sufficient cash is available to meet all maintenance obligations as they falldue over the next 10 years. The amount recognised as a provision is the best estimate of the expenditure required to settle thepresent obligations at 31 December 2018. Present obligations are identified in the school's current 10-year property plan approvedby the Ministry of Education. The provision has not been adjusted for inflation and the time value of money.


18. Painting Contract Liability

2018 2018 2017Budget

Actual (Unaudited) Actual

Current LiabilityNon Current Liability

5,027

5,027

In 2018 the Board signed an agreement with Programmed Maintenance Services Ltd (the contractor) for an agreed programme ofwork covering a four year period for the Junior Campus. The agreement has an annual commitment of $9,950. The liability is thebest estimate of the actual amount of work performed by the contractor for which the contractor has not been paid at balance sheetdate. The liability has not been adjusted for inflation and the effect of the time value of money.

19. Finance Lease Liability

The School has entered into a number of finance lease agreements for computers. Minimum lease payments payble:

No Later than One YearLater than One Year and no Later than Five Years

Later than Five Years

2018

Actual

53,42863,332

116,760

2018Budget

(Unaudited)$

20,40522,816

43,221

2017

Actual$

20,40522,816

43,221

20. Funds Held in Trust

Funds Held on Behalf of Third Parties

2018

Actual

$

427,330

427,330

2018Budget

(Unaudited)

$

393,024

393,024

2017

Actual

$

393,024

393,024

These funds are held where the school is agent for representative amounts and therefore these are not included in the Statement ofComprehensive Revenue and Expense.

These funds are held in trust for international students.


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21. 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:

A Block - Roof ReplacementA Block Roof, Spouting & Bay Window - IACBlock A B and Site -MYPLCBoiler Repair - Junior Campus

Spec Needs Modification - Senior Campus

Totals

Represented by:Funds Held on Behalf of the Ministry of EducationFunds Due from the Ministry of Education

2018

in progress

in progress

completedcompletedcompleted

OpeningBalances

$

6,57233,76556,41827,000

123,755

Receiptsfrom MoE

$

4,8961,663

24,852

31,412

Payments$

(37,146)(61,315)(28,663)(24,852)

(151,976)

ClosingBalances

$

6,572(3,381)

3,191

3,191

A Block - Roof ReplacementBoiler Repair - Junior Campus

F Block - Veranda Roof Replacement

Block A B and Site -MYPLCBlocks B,D,F,R,Y & RA - Flooring Replacements

A Block Roof, Spouting & Bay Window - IAC

Totals

2017

in progress

in progress

completedin progress

completedin progress

OpeningBalances

$

6,572

6,572

Receiptsfrom MoE

$

27,0009,385

68,25946,12736,450

187,222

Payments$

(9,385)(11,841)(46,127)

(2,685)

(70,038)

3,191

ClosingBalances

$

6,57227,000

56,418

33,765

123,755


22. Funds Held for Teen Parent Unit

James Hargest College receives funding from the Ministry of Education to support the school's Teen Parent Unit, Murihiku YoungParents Learning Centre. This is a separate business unit of the school in accordance with the agreement with the Ministry ofEducation. The revenue and expenditure is included in the school's Statement of Comprehensive Revenue and Expense. During the

year the funds were spent as follows:

Revenue

Course Fees

Government Operational GrantDonationsConveyance Allowance

Ministry of Education Project Grant/Other Grants

Expenses

Course Costs

Motor Vehicle ExpensesOperational Set-up and Maintenance Costs

Other ExpensesEmployee Benefit - Professional DevelopmentEmployee Benefit - Salaries

Surplus for the year Teen Parent Unit

2018

Actual$

47,673140,826

2,67510,958

1,750

203,882

8,50010,12918,04754,282

2,928103,205

197,090

6,792

2018Budget

(Unaudited)

50,640137,871

1,25012,455

614

202,830

11,8986,288

23,05559,763

2,16899,659

202,830

2017

Actual$

50,640137,871

1,25012,455

614

202,829

11,1715,904

21,64855,919

2,03693,576

190,254

12,576

23. 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 entersinto 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 dient/recipientrelationship on terms and condition no more or less favourable than those that it is reasonable to expect the school would haveadopted 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 consistentwith the normal operating arrangements between government agencies and undertaken on the normal terms and conditions for such

transactions.

Al Pannett (Deputy Principal) is the part owner of F Stop Photographies which supplied goods and services to the School to thevalue of $10,160 (2017: $13,151) during the year.

Chris O'Connor is a trustee of the Board and a Partner at Crowe Horwath. Crowe Horwath and a sub-division, AccountAbility, have

provided accounting and software support services to the School to the value of $13,429 (2017: $18,315) during the year.

Because these amounts are less than $25,000 for the year for each contract, the contracts do not require Ministry of Educationconflict of interest approval under section 103 of the Education Act 1989.


^:GIIL

2018Actual

$

8,6080.17

768,1096.00

776,7176.17

2017Actual

$

7,7580.46

744,8716.00

752,6296.46

24. Remuneration

Key management personnel compensation

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

Board MembersRemuneration

Full-time equivalent members

Leadership TeamRemuneration

Full-time equivalent members

Total key management personnel remuneration

Total full-time equivalent personnel

The full time equivalent for Board members has been determined based on attendance at Board meetings, Committee meetings and

for other obligations of the Board, such as stand downs and suspensions, plus the estimated time for Board members to prepare formeetings.

Principal

The total value of remuneration paid or payable to the Principal was in the following bands:2018 2017

Actual Actual$000 $000

Salaries and Other Short-term Employee Benefits:Salary and Other Payments 190 - 200 180 -190Benefits and Other Emoluments 24 - 25 22 - 23Termination Benefits

Other EmployeesThe number of other employees with remuneration greater than $1 00,000 was in the following bands:

Remuneration 2018 2017

$000 FTE Number FTE Number

110-120 3.00 2.00100-110 1.00 2.00

4.00 4.00

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


25. 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 payablewas as follows:

2018 2017Actual Actual

Total

Number of People

26. Contingencies

There are no contingent liabilities and no contingent assets as at 31 December 2018 (contingent liabilities and assets at 31December 2017: nil).

Holidays Act Compliance - Schools PayrollThe Ministry of Education performs payroll processing and payments on behalf of school boards of trustees, through payroll serviceprovider Education Payroll Limited.

The Ministry has commenced a review of the schools sector payroll to ensure compliance with the Holidays Act 2003. The initialphase of this review has identified areas of non-compliance, however the potential impact on any specific school or individual andany associated historical liability will not be known until further detailed analysis has been completed.

To the extent that any obligation cannot reasonably be quantified at 31 December 2018, a contingent liability for the school mayexist.

27. Commitments

(a) Capital Commitments

There are no capital commitments as at 31 December 2018 (capital commitments at 31 December 2017: nil).

(b) Operating Commitments

As at 31 December 2018 the Board has entered into the following contracts:

(a) operating lease of laptops;2018 2017Actual Actual

No later than One Year - 4,941

Later than One Year and No Later than Five YearsLater than Five Years

4,941


E^fTY'".,"7TV'^ll

28. Managing Capital

The School's capital is its equity and comprises capital contributions from the Ministry of Education for property, plant and equipmentand accumulated surpluses and deficits. The School does not actively manage capital but attempts to ensure that income exceedsspending in most years. Although deficits can arise as planned in particular years, they are offset by planned surpluses in previousyears or ensuing years.

29. Financial Instruments

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

Cash and receivables2018

Actual

2018Budget

(Unaudited)

2017

Actual

Cash and Cash EquivalentsReceivablesInvestments - Term Deposits

Total Cash and Receivables

Financial liabilities measured at amortised costPayables

Total Financial Liabilities Measuredat Amortised Cost

1,385,658808,796

5,165,708

1,363,524827,177

4,948,176

1,175,999827,177

4,948,176

_z

1,

1,

,360,162

,368,205

,368,205

~L

1

1

,138,876

,325,609

,325,609

6,951,351

1,325,609

1,325,609

30. Events After Balance Date

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

31. Prior Period Adjustment

The 2018 accounting treatment of the Teen Parent Unit has been re-stated. All income and expenditure is included in the Statementof Comprehensive Income. Previously the net income and expenditure was reflected in the Statement of Financial Position. Aseparate reserve is reflected in the Statement of Changes in Net Assets/Equity.


'-'A"f^


Principal:Mr A. P. Wood

M.Ed.Admin, B.A., Dip Tchg

Kiwisport Funding 2018

During 2018 the school received total Kiwisport funding of $37,185.95

(excluding GST). The funding contributed to salaries for our two Sports Co-

ordinators, along with sport and recreation equipment.

Andrew Wood

Principal

JUNIOR CAMPUS6 Layard StreetInvercargill, New ZealandTelephone 03 217 9250Facsimile 03 21731520351

SENIOR CAMPUS288 Layard Street

Invercargill, New ZealandTelephone 03 2176129

Email: [email protected] Facsimile 03 21'^ggg ^4


Board of Trustee Members

Chris O'Connor (Deputy Chairperson)

Term expiry: May 2019

Accountant

Jason McKenzie


Sport Southland Elite Athlete Advisor

Rose Wilson


Solicitor

Peter Stuart


IT Solution Manager

Andrew Boon


Social Worker

Christine Black (Staff Representative)


Teacher

Non - Elected Board of Trustee Members

Andrew Wood

Principal

Jeanette Chilton-Smith

D e puty Pri n c\â\

Jocelyn Auld

Associate Principal

Alisha Gerken

Student Representative

Page 25

2018 Annual Report - SummaryAnalysis of Variance

Executive Summary - Goal 1The "vital statistics" for achievement in 2018 at JHC are generally very healthy, with "Highest Qualification on Leaving", NCEA passes at L1, 2 and 3, and Literacy/Numeracy all clearly above Decile 8 schools nationally. Scholarships, whilst low for JHC at 16, are stillwell above most other schools of our type. Maori disparities continue to be statistically insignificant except for Level 1, where issues noted over 3 years with this cohort continued and resulted in a small disparity. We also note the pattern of some disparity with theYear 8 cohort. Generally, these results confirm the embedding of Culturally Responsive practices introduced over the last 8 years. The area of sub-optimal performance was our MeriVExcellence data, which was below Decile 8 at all three levels.

Goal 1 - Academic Achievement"Strong academic focus and the pursuit of excellence" (JHC

vision)

Report on Whole School Success Report on Maori Success"To equip all our students to create the best possible future...."

"Highest qualification on leaving"James Hargest College leavers with Level 2 or above:2011 2012 2013 2014 2015 2016 2017 201878% 77% 78% 90% 86% 87% 84% Not yet available

James Hargest College Maori leavers with Level 2 or above:2011 2012 2013 2014 2015 2016 2017 201877% 53% 81% 83% 74% 83% 85% Not yet availableObservation: No disparity in 2017

Literacy/Numeracy Goal of 95% at Level 1.Level 1 Literacy 93.3% (Nat 84.1)Level 1 Numeracy 93.7% (Nat 82.1)

Level 1, JHC Maori Literacy = 87.2%Level 1, JHC Maori Numeracy = 92.3%Observation: Approx 6% disparity in literacy, also reflected in LI pass rate (= 2 Maori students)

Observation:NCEA pass rates exceed Decile 8 at all 3 levels) However "good passes" (M or EEndorsements) are below Decile 8

Goal: Passrafes and 'Good Passes" are comparable with Decile 8 Nationally.

NOTE: New single MOE Data set different from previous years.Includes all students attending for 70 days or more.

L1M+E

,L2,

M+EL3M+EUE

JHC84.8%

54.7%89.0%45.1%73.2%35.9%

57.6%

NAT70.5%

55.6%74.2%42.1%62.3%42.9%

45.7%

Dec880.8%

61.6%83.3%48.9%72.3%45.3%57.8%

Note: L1 passrate our lowest over 5 years \ According to newL2 & 3 passrates our highest over 5 years -I MOE data set

Level 1 Maori pass rate = 74.4% {Nat Mao 55.7%) (10% disparity with JHC all = 3 students)M + E = 41.3% (13% disparity with JHC all) fTotal 29 Maori students)

Level 2 Maori pass rate = 83.3% {Nat Mao 63%) (6% disparity with JHC all = 2 students)M + E = 47.5% (Slightly above JHC all) (Total 40 Maori students)

Level 3 Maori pass rate = 56.5% (Nat Mao 48%) (17% disparity - sfaf insignificant = 2 students)M + E = 53.9% (Much higher than JHC all) CTotal 13 Maori students)

Maori UE pass rate = 47.8% (10% disparity = 1 student)

Observation: Disparities are bordering on the statistically insignificant range, but are neverthelessevident at L1 specially. (Clearty there is lower retention into Year 13)

Scholarships. Goal: > 15 16 Scholarships, including one "Outstanding Scholarship"

Year 9 and 10 Cohort "Big Picture":Proportion of cohort "at or above our expectations" (Curriculum Level 3A or higher)

(See "looking Back' section of Charter for report on progress made by identifytarget groups.)

Reading 70.6% (Average previous 5 years 74.6%)Writing 50.2% (Average previous 5 years 55.0%)

L Math 45.5%

Reading 82.5% (Average previous 5 years 86.0%)Writing 65.7% (Average previous 5 years 66.2%)Math 78.0% (Average historical not available due to change in assessment

threshold)

Year 7 Maori: | Reading 71.1% (No disparity)Writing 51.1% (No disparity)Math 46.7% (No disparity)

Year 8 Maori | Reading 76.0% (8% disparity = 4 students)Writing 58.0% (8% disparity = 4 students)Math 74.0% (4% disparity = 2 students)

Pasifika Students cf. Appendix As the number of Pasifika students atJHC is very low. (average of 6 per year level), statistical achievement results are therefore not published in this summary.

Appendices referred to provide historical trend data or further detail

Page 26

Executive Summary - Goal 2Both qualitative and quantitative evidence reflect a highly inclusive school culture, in terms of all kinds of needs. The school's appreciation of how success looks different for differentstudents has broadened in scope. Engagement is high, as indicated in a variety of ways such as Peer Support programmes, service, interest in Maori cultural identity, the embracing ofcultural diversity, as well as our traditional strengths of Performance Music and drama. Attendance, retention, destination data and the extremely low exclusion data are all evidence ofa highly engaged and inclusive school. An unusual feature however was the high attrition of Maori girls from Year 12 into Year 13.

Goal 2 - Engagement and Broader Educational Success

" ..... to foster healthy all round development..."

".... Encourages participation, connectedness and

whanaungatanga"

Narratives of Success"..pursuit of excellence in its broadest sense.."

"..helping young people build their personal identity.."

Evidence of a wide spectrum of responsiveness to equity, inclusion, extension, overcoming

barriers, etc.

(Also reported within each Curriculum Department Report)

ParticipationSport

Cultural

Service and Leadership

Engagement:(a) Attendance data cf. Appendix

(b) Retention at school (2017 to 2018) cf. Appendix

(c) Destination data

(d) Graduation Programme

(e) Stand Downs

(f) Suspensions

g) Exclusions

Report on Whole School Success".....helping young people build their personal identity and hauora in a

context of strong communal values...."

Student A - Arrived Sept with history of disengagement/ known negatively by others/went from 22 to 62credits by utilising support offered and sheer hard work.Student B - Progressed from inability to participate in PE as a junior (anxiety) to "OutstandingScholarship" in PE. Mother: "I'm sitting here crying with pride and it's all down to your support, I trulycannot believe how far she has come."

Student C - Student Support Centre girl: (Special Needs) excelled in Art, off to Animation course at SITStudent D - Year 13 boy: Disengaged/routine smoker disruptor/fringe activities throughout - turned overnew leaf in Year 13 with effort, hard work - achieved a building apprenticeship for 2019Student E - Year 10 boy: reserved/engaged in "Travellers"/ huge lift in English literacy performanceStudent F - Senior International girl: "Before I came here, I was obsessed with my appearance -1 haverealised that beauty is more than what's on the surface.."

Student G - Year 8 boy: First year at JHC coloured by violent outbursts, poor decisions, lack of focus -matured, asks for help, willing to learn, cooperative.... Mother came to school worried she hadn't hadany SOS's for so long.Student H - Leverages success in Young Enterprise for trip to Colombia. Well establishedentrepreneur outside school with several business interests, being mentored/supported through school.

Report on Maori Success"Maori enjoying success as Maori"

"Success by Maori as Maori"

(as defined by the JHC Maori community; co-constructed through hui and whanauconversations throughout 2015)

Demonstrating cultural prideSelf belief, values and resilienceStrong connections and sense of belonging

Kapa Haka Whanau continue to be invited to assist with significant events atMurihiku Marae.Senior Campus Kapa Haka called on to perform on many occasions. BothKapa groups performed with distinction at Polyfest, with the Senior Groupbeing offered pride of place as the final evening performance.Year-long fund raising effort for trip to Te Matatini (Feb 2019) embarked on.

84.3 of all Year 9-13 students participated in at least one extra-cumcular activity (83.3 %of Maori). Participation is highest at Year 9 and lowest at Year 11 and 12. {Note: Girl's participation is10% higher than boys)43% of all Year 9-13 students participate in a regular team sport. This is well below the 60% participation figure for all of Southland, though the data sets may not be comparable.Successes, participation and quality of opportunity was maintained across a wide range including: 3 full musical productions; a drama production; debating; chamber music; Rockquest andJazzfest; choir festival; range of language and public speaking competitions."Tuakana Teina" peer programmes were documented coherently and supported strongly. Wide range of peer programmes.International Friendship Club initiated a series of regular events supporting integration and social relationships for International Students.LEO (Young Lions) Service Club (270 members) organised a number of fundraisers and donated over $10,000 to a range of charities.Senior Council, LEO Club, International Friendship Club, House Captains, Sport teams, Sound and Lighting, all provided excellent opportunities for leadership development.High level of participation in Junior Campus Kapa Haka (72 students), and Taiaha Roopo (40 students), and Pasifika Performance group.

1. MOE data shows JHC attendance consistently above national, national co-ed, Decile 8, andOtago/Southland (based on Term 2 2018 data). This shows that 70% of our students attend over 90% ofthe time.

Into Year 12 = 94.9%Into Year 13 =93.9%

2018 school leavers (whole cohort) go to:o Employment = 18%(19% 2017), University = 45% (40% 2017), Polytech/Other

Tertiary = 28% (31 % 2017) (Other = 6%) (Observation - slight increase in Uni %)

All Year 8-10 students graduated with exception of two Year 10's (doing alternate programme)

2011 2012 2013 2014 2015 2016 2017 201872 49 58 54 58 33 61 70

2011 2012 2013 2014 2015 2016 2017 20189 11 4 10650 4

2011 2012 2013 2014 2015 2016 2017 20186 6254001

1. 58 % of JHC Maori attend over 90% of the time. (Lower than overall JHC buthigher than most external Maori comparison)

Into Year 12 = 93.8% - no disparityInto Year 13 = 62.9% - significant and unusual attrition (Predominantly girls)

Maori school leavers go to:

o Employment = 27% (15% 2017), University = 41% (46% 2017),Polytech/Other Tertiary = 27.0 % (39% 2017) (Other = 5%)

All Maori students graduated

24 % of the stand downs were Maori students who make up 19% of the schoolroll, i.e. slightly disproportionate.

Page 27

Executive Summary - Goal 3

All who work at JHC have a very clear understanding of the strategic foci of our organisation. The evidence below reflects progress on identified, key areas of development.

Goal 3 - Organisational Effectiveness

Key Schoolwide Development FociCulturally Responsive Practice

E-learning Environment

o Students are prepared for their digital future and Pedagogy is enhanced through 1-1 deviceaccess

Strategic Organisational FociSustainable leadership

Property Development

Financial sustainability

Organisational Responsiveness

Trends, new courses, innovation, responsjveness to emerging needs.

Special ProgrammesMYPLC -Teen Parent Unit cf Appendix

ISSN:o General

o Activity Centre cf Appendix

Student Support Centre

International Programme

"We aspire to provide education of superb quality....."

"through responsive, supportive preparations.........."

(Mission Statement)

Learning from recent years' PLD. CRP is now expected to be embedded into our "new normal". This includes a clear and deliberate culturally responsive lens being placedover all practice. However, 2018 data reflected a small re-emergence of disparities in Maori achievement in some cohorts. Together with consideration of "Staff Voice" late inthe year, specific PLD has been reprieved for 2019 (the "Shadow Coaching Strategy")

In 2018, the school "highly recommended" that students in Years 7 -10 be equipped with a personal device as the next stage of implementation of a BYOD environment.This is a tool enabling significant qualitative changes to teaching and learning but is necessarily a "messy" time from all perspectives. Significant PLD is ongoing. A largenumber of "equity" devices have been purchased and are available for (free) issue for students without a device. A detailed strategic plan has been updated based on staffand student "voice". Late in 2018 over 90% ofYear7&8's, 81% of Year 9's and 62% of Year 10'swere bringing their own device to school every day.

Awareness of capacity building maintained and new leadership seeded in (Associate Principal, SC and new Deputy Principal, JC). Future planning for e-admin processeswhen SE retires, advanced. "Apprentice Dean" pilot extended into 2nd year. JCS actively involved in mentoring 2 x middle leaders.

Now in year 3 of current 5YPP, this document is yet to be signed off, due to MOE planning to aggregate second significant infrastructural projects into one mega-project. Thiswill use all current 5YPP funding plus a significant additional sum. Business case currently being progressed by MOE property personnel.Otherwise, buildings as well maintained as budget allows.Significant minor works included D block storage area; SC library bi-fold door replaced with glass wall; JC long jump pit, cricket nets and selective car park resurfacing.

Further close analysis was carried out of teaching staff, non- contact time and programmes involving discretionary release time. Critical decisions were made late 2018totalling a saving of 1 FTTE for 2019.

The Travellers Programme Pilot (focussed on moderate mental health needs), as a pro-active investment in student resilience and emotional wellbeing was expanded from 8(2016) to 56 (2017) and to 139 students (2018). Funded partially by CToS, this represents a significant investment.

Our first refugees started late in 2018 (3). With very little English, they presented new challenges (and extensive work for our Spanish teacher.)

An Agribusiness course at L2 was piloted (combination of Ag/Hort and Business Studies). On reflection, it did not succeed in engaging new students or facilitating a pathwayof study, (discontinued in 2019, to be considered for re-introduction in 2020).

Pastoral Review - a number of factors led to a substantive review of SC pastoral processes, carried out by a staff taskforce throughout the year. Feedback was sought fromstaff, students and parents. The key qualitative improvement sought was that senior students be "known and noticed" to a deeper level, along with other systemicimprovements. Key decisions were made for implementation at the start of 2019 including 0 Single level Senior Form classes © 2 x long Form Times weekly (instead of 4short) © Assemblies placed in Form Time OGraduation system overhauled ©Renewed focus on staff consistency ©Re-setting clear understandings around the role ofDeans.

JHC is host school, (located at Surrey Park, Isabella St). A separate Annual Report gives critical data. The Unit experienced an excellent year with high numbers.

• JHC continued to play a full part in the programmes provided and funded by all five secondary schools, for students at risk of disengaging.• Our usage represented 14% of the total. Our staffing contributions was 0.33 FTTE. Outcomes reflected by low suspension/exclusion rate.

JHC is the host school for the Invercargill Activities Centre managed by the Director of the ISSN as one of the coordinated programmes for all Invercargill secondary schools.The two teaching staff are on the JHC payroll, (separate Annual Report based on Ministry of Education template).

This Special Needs Unit (funded solely by JHC, including ORS funding) catered for 19 students, each with varying degrees of mainstream integration. The unit is base for ateam of 15 Teacher Aides and 2 key teaching staff, with management oversight by the SENCO. The programme includes a "Transition to work" element which representsBest Practice. Under new leadership in 2019 following retirement of HOD at end of 2018.

JHC hosted a number of long term International Fee Paying Students, from a diverse range of countries, and several short term groups during the year. A trend appears to bedeveloping of more International Students with their parents living in Invercargill (some associated with SIT) together with a growing diversity of countries of origin.

Page 28

|BDO Tel: +64 3 218 2959 BDO INVERCARGILLToll Free: 0800 182 959 136 Spey Street,Fax: +64 3 2-18 2092 Invercargitl [email protected] PO Box 1206,www.bdo.co.nz Invercargilt 9840, New Zealand

INDEPENDENT AUDITOR'S REPORT

TO THE READERS OF JAMES HARGEST COLLEGE'S FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2018

The Auditor-General is the auditor of James Hargest College (the School). The Auditor-General hasappointed me, G N Thomas, using the staff and resources of BDO Invercargill, to carry out the auditof the financial statements of the School on his behalf.

Opinion

We have audited the financial statements of the School on pages 2 to 23, that comprise the statementof financial position as at 31 December 2018, the statement of comprehensive revenue and expense,statement of changes in net assets/equity and statement of cash flows for the year ended on thatdate, and the notes to the financial statements that include accounting policies and other explanatoryinformation.

In our opinion the financial statements of the School:

• present fairly, in all material respects:

o its financial position as at 31 December 2018; 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 PublicSector- Public Benefit Entity Standards, Reduced Disclosure Regime.

Our audit was completed on 31 May 2019. 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 ofTrustees and our responsibilities relating to the financial statements, we comment on otherinformation, and we explain our independence.

Basis for our opinion

We carried out our audit in accordance with the Auditor-General's Auditing Standards, whichincorporate the Professional and Ethical Standards and the International Standards on Auditing (NewZealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilitiesunder 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 basisfor our opinion.

Responsibilities of the Board of Trustees for the financial statements

The Board of Trustees is responsible on behalf of the School for preparing financial statements thatare fairly presented and that comply with generally accepted accounting practice in New Zealand. TheBoard of Trustees is responsible for such internal control as it determines is necessary to enable it toprepare financial statements that are free from material misstatement, whether due to fraud or error.

BDO New Zealand Ltd, a New Zealand limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and formspart of the international BDO network of independent member firms. BDO New Zealand is a national association of independent member firms which operateas separate legal entities.

|BDO Tel: +64 3 218 2959 BDO INVERCARGILLToll Free: 0800 182 959 136 Spey Street,Fax: +64 3218 2092 Invercargill [email protected] PO Box 1206,www.bdo.co.nz Invercargill 9840, New Zealand

In preparing the financial statements, the Board of Trustees is responsible on behalf of the School forassessing the School's ability to continue as a going concern. The Board of Trustees is alsoresponsible for disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting, unless there is an intention to close or merge the School, or there is norealistic alternative but to do so.

The Board of Trustees' responsibilities arise from 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 awhole, are free from material misstatement, whether due to fraud or error, and to issue an auditor'sreport that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out inaccordance with the Auditor-General's Auditing Standards will always detect a material misstatementwhen it exists. Misstatements are differences or omissions of amounts or disclosures, and can arisefrom fraud or error. Misstatements are considered material if, individually or in the aggregate, theycould reasonably be expected to influence the decisions of readers taken on the basis of thesefinancial statements.

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

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

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

• We identify and assess the risks of material misstatement of the financial statements, whetherdue to fraud or error, design and perform audit procedures responsive to those risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. Therisk of not detecting a material misstatement resulting from fraud is higher than for oneresulting 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 auditprocedures that are appropriate in the circumstances, but not for the purpose of expressingan opinion on the effectiveness of the School's internal control.

• We evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Trustees.

• We conclude on the appropriateness of the use of the going concern basis of accounting bythe Board of Trustees and, based on the audit evidence obtained, whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theSchool's ability to continue as a going concern. If we conclude that a material uncertaintyexists, we are required to draw attention in our auditor's report to the related disclosures in thefinancial statements or, if such disclosures are inadequate, to modify our opinion. Ourconclusions 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 goingconcern.

BDO New Zealand Ltd, a New Zealand limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and formspart of the international BDO network of independent member firms. BDO New Zealand is a national association of independent member firms which operate

as separate legal entities.

BDO Tel: +64 3 218 2959 BDO INVERCARGILLToll Free: 0800 182 959 136 Spey Street,Fax: +64 3 218 2092 Invercargilt [email protected] PO Box 1206,www.bdo.co.nz Invercargill 9840, New Zealand

• We evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

• We assess the risk of material misstatement arising from the Novopay payroll system, whichmay still contain errors. As a result, we carried out procedures to minimise the risk of materialerrors arising from the system that, in our judgement, would likely influence readers' overallunderstanding of the financial statements.

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

Our responsibilities arises from the Public Audit Act 2001.

Other information

The Board of Trustees is responsible for the other information. The other information comprises theanalysis of variance, kiwisport paragraph and BOT listing included on pages 24 to 28,but does notinclude 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 expressany form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the otherinformation. In doing so, we consider whether the other information is materially inconsistent with thefinancial statements or our knowledge obtained in the audit, or otherwise appears to be materiallymisstated. If, based on our work, we conclude that there is a material misstatement of this otherinformation, 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 andEthical Standard 1 (Revised): Code of Ethics for Assurance Practitioners issued by the New Zealandauditing and Assurance Standards Board.

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

G N ThomasBDO InvercargillOn behalf of the Auditor-GeneralInvercargill, New Zealand

BDO New Zealand Ltd, a New Zealand limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and formspart of the international BDO network of independent member firms. BDO New Zealand is a national association of independent member firms which operateas separate legal entities.

JAMES HARGEST COLLEGE FOR THE YEAR ENDED 31 … · 2019. 7. 2. · 271,402 6,793 278,195 258,827 12,575 271,402 258,827 12,575 271,402 6,562,248 The Reserve is designated funds for

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