Treasurer’s Report v1 n1
The accounts for the 1988-1989 year have been finalized and audited. This financial year has been an unusual one due to the GST situation the NZSI found itself in. The Inland Revenue Department required the NZSI to register for GST and that we were liable for GST on our earnings from the inception of GST, as well as compounding penalty tax on those amounts.
All back GST has been paid. This amount has also been deducted from the Accumulated Fund on the Balance Sheet, as this GST relates to income and expenditure from previous periods. On submission to the Inland Revenue Department, no penalty tax has been added.
Whilst referring to GST, it is important to remember that when organizing an event such as a camp, the fees collected include a GST component, which we collect on behalf of the Government and is not really ‘our money.’
I would like to clarify some points on these financial statements.
- Newsletter – The amount of $2887.92 is the cost after advertising revenue has been removed.
- Suzuki Day Workshop – The amount of $3614.22 reflects the amount owing to Australia (since paid).
Balance Sheet
- Loans to branches refers to GST payments made by the executive on behalf of the branches.
- Liabilities – GST owing is the accumulated amount of GST up to balance date and has been paid on time.
- Loan from Australia was the balance of the amount we owed the Talent Education Institute for allowing Dr. Suzuki to come to New Zealand (since paid in full).
One further point which appears not to be clear to some members regards the previous years’ accounts, i.e., 1987-1988. It seems there was some confusion regarding the amount of money spent on computer equipment. The question I received was, ‘Where does this amount appear on the statement of Income and Expenditure?’
The answer is that it doesn’t nor should it from an accounting point of view. The reason is that this amount has been spent on assets (see Balance Sheet under Fixed Assets), and theory says we still have the benefit from that money spent. Expenditure relates only to items that will not have some future financial benefit. In theory, we could recover the money by selling the computer, but the same could not be said of something such as travel or phone expenses, for example.
I trust that I have cleared up that point, and if any member has a question, please contact me at (09) 4158079 (Bus) or at my home address, 49 Colonial Road, Birkenhead, Auckland.”
Peter Macartney
Balance Sheet as at 30 June 1989
| Category | Details | Amount |
|---|---|---|
| Accumulated Fund | Balance, 1 July 1988 | $32,966.85 |
| Less back GST | $(8,120.66) | |
| Less excess expenditure | $(8,446.76) | |
| Total Accumulated Fund | $16,399.43 | |
| Represented by: | ||
| Current Assets | Trustbank Waikato base account | $4,869.48 |
| Trustbank Waikato workshop account | $2,356.26 | |
| Trustbank Waikato GST account | $230.82 | |
| Trustbank Waikato Newsletter account | $340.00 | |
| Advance to Hawkes Bay Branch | $6,000.00 | |
| Total Current Assets | $13,796.56 | |
| Loans to Branches | Various GST payments | $2,056.32 |
| Fixed Assets | Computer (at cost) | $7,358.50 |
| Less accumulated depreciation | $(1,499.50) | |
| Net Computer Value | $5,859.00 | |
| Video camera, etc. | $4,872.00 | |
| Less accumulated depreciation | $(1,633.80) | |
| Net Video Camera Value | $3,238.20 | |
| Video recorder | $869.00 | |
| Less accumulated depreciation | $(200.00) | |
| Net Video Recorder Value | $688.70 | |
| Total Fixed Assets | $9,765.90 | |
| Total Assets | $25,618.78 | |
| Liabilities | GST owing | $3,886.35 |
| Loan from Australia (AUD $4,000) | $5,333.00 | |
| Total Liabilities | $9,219.35 | |
| Net Assets | $16,399.43 |
Statement of Income and Expenditure for Year Ended 30 June 1989
| Category | Details | Amount |
|---|---|---|
| Income | Subscriptions | $8,443.33 |
| Interest received | $680.83 | |
| Video/tape hire | $2,065.66 | |
| Graduation tapes | $225.91 | |
| Summer Camp | $390.41 | |
| Auckland Conference | $3,497.58 | |
| Total Income | $15,303.72 | |
| Expenditure | Depreciation | $1,085.10 |
| Grants | $2,500.00 | |
| Newsletters | $2,887.92 | |
| Phones | $452.34 | |
| Postages | $1,116.74 | |
| Printing | $262.23 | |
| Suzuki Workshop | $3,614.22 | |
| Stationery | $1,599.97 | |
| Subsidies | $177.00 | |
| Travel | $5,342.19 | |
| Wages | $3,200.34 | |
| Miscellaneous | $1,512.43 | |
| Total Expenditure | $23,750.48 | |
| Excess Expenditure over Income | $(8,446.76) |