Te Horowhenua Trust

Annual Report

2010 - 2011

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Prepared by Joann Ransom Head of Libraries

Te Horowhenua Trust 10 Bath Street

Levin., NZ August 2011.

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Contents

Chairman’s Report 4

Head of Libraries’ Report 5

Introduction 6

Objectives 7

Service Delivery 8

Lending 9

Programmes 10

Collections 11

Children 12

Teens 13

Seniors 14

Local Resources 15

Our Libraries 16

Te Takere 17

Technology 18

Financial Summary 19

Supporters 20

Fees and Charges 22

Membership 23

Statement of Service Performance 24

Personnel 26

Directory 27

Audited Financial Accounts 28 - 51

Auditors Opinion 52 - 54

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It is my pleasure to report on the 15th year of the Horowhenua Library Trust, the period from July 2010 to June 2011. It’s been a year of positive achievements and great optimism as the long awaited Levin Library, incorporated into the exciting Te Takere complex, takes shape and fundraising gathers momentum.

This year the Trust changed its name to Te Horowhenua Trust to better reflect the role of The Trust in Te Takere and Te Awahou-Niewe Stroom, the proposed multi-purpose facility in Foxton.

Modern libraries are no longer just places for books but are thriving places of community where an astonishing range of activities

take place. While our existing Trust Deed and core roles fit well with the project brief for Te Takere the term ‘library’ itself in its traditional sense, is too narrow for the broader community role envisaged in the new facility and we will need to review the governance documents with our Te Takere partners.

The Trust model remains a sound one and the Library Trust is a successful organisation costing far less in rate payer dollars per capita than most other NZ libraries while having more visitors, carrying out more transactions and issuing more books and other library items per capita. The Customer Satisfaction Survey carried out in June 2010 was more good news: 99% of our library users agreed that staff are friendly, courteous and meet expectations.

This year we farewelled Alan Smith from the Trust board after 5 years of outstanding service. We also farewelled Diane Edyvane as the Chair of the Friends of the Library and welcome Barbara Easterbrook as her replacement.

It is a pleasure to acknowledge the ongoing generosity of the community. The Friends of the Library cannot be thanked enough for their hard work and warm support of the staff. I would also like to thank Councillors Good and Rush, David Clapperton from the Council executive for such a positive working relationship, Bev Edlin for fund raising support around Te Takere, our many tireless volunteers and the staff who have risen superbly to the year's challenges.

Finally my thanks to fellow trustees for their wise counsel and for lasting the distance. It is our hope that the new libraries, so badly needed, are now becoming an exciting reality.

Sharon Crosbie CNZM OBE

Chair.

Chairman’s Report

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Head of Libraries’ Report

He tangata, he tangata, he tangata.

It is ALL about the people and this year has been an absolute joy forging new and strengthening existing relationships.

The strategic leadership being shown by our elected representatives means we have a framework in place to guide and shape our District’s development. Te Takere is the next big project that the Trust is directly involved with.

Council’s vision of an integrated community centre will make so many of our community aspirations a reality and it is a privilege to be involved with the Project Steering Group and bring this to fruition. We have been consulting extensively with different sectors in our community. We are working closely with our Te Takere partners, Horowhenua District Council and the Muaupoko Tribal Authority, and with key stakeholder groups. We aim to develop a popular, multi-use facility that will stand the test of time and is able to accommodate whatever the next 50 years brings. This is no small task.

We don’t know what libraries of the future will look like but we do know they are functioning more and more as the heart and hub of the communities they serve. They are increasingly integrating with galleries, archives, museums, youth centres and community agencies and Te Takere will be an exemplar of that changing model.

So much good that happens in the Horowhenua is because we have a strong sense of community. Working collaboratively to achieve more than any of us could achieve alone is where the real magic starts.

We dream together, we talk together and we ‘do’ together. In the vein of Kennedy’s 1961 presidential address, many of us ask not what our community can do for us but what we can do for our community. Volunteerism may be a dying thing in other District’s but it is alive and well in the Horowhenua and this is what enables fantastic, innovative projects like Te Takere to happen.

It is a pleasure to present this Annual Report and share all the wonderful things we have been up to during 2010—2011.

Joann Ransom

Head of Libraries

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Introduction

Organisation

Horowhenua Library Trust (The Trust) was incorporated under the Local Government Act 2002 on the 3rd December 1996 and changed its name to Te Horowhenua Trust on 4th March 2011 to better reflect the new vision and role of The Trust in the proposed Horowhenua Culture and Community Centre (Te Takere) and the proposed multi purpose facility in Foxton (Te Awahou-Niewe Stroom).

The Trust still uses Horowhenua Library Trust as a trading name.

The Trust is a charitable trust incorporated in New Zealand under the Charitable Trusts Act 1957. The Trust is also a not-for-profit Council Controlled Organisation as defined under section 6 of the Local Government Act 2002, by virtue of the Council’s right to appoint the Board of Trustees.

Accountability

The Trust is required, pursuant to section 6 of the Local Government Act 2002 and Schedule 8 of the Act, to prepare and deliver to Horowhenua District Council (Council) a draft Statement of Intent (SOI) no later than the 1st March in each year.

The SOI is a public expression, required by the Act, of the accountability relationship between The Trust and Council. It is the document against which The Trust reports to Council during the year and against which the Council and the Auditor General hold the Trust accountable for its performance.

The SOI identifies the nature of the Trust’s business, issues of importance to The Trust and the nature and scope of activities to be undertaken. It sets the performance expectations agreed between the Trust and Council and records specific objectives and performance targets to be met during the relevant period.

The Trust employs the Head of Libraries, to oversee operations and fulfill the Trust’s obligations under the Management Agreement which is negotiated biennially between the Trust and Council.

Reporting

The Trust is required to provide quarterly reports to Council covering activities under-taken by the Trust, the Trust’s performance against agreed SOI performance measures and significant issues relating to library services.

The Trust Deed requires an Annual General Meeting to be held where the annual report and accounts (this document) is received.

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Objectives

Te Horowhenua Trust aims are:

Strategic and operational partnerships that enable The Trust to make a stronger contribution to the development of social capital in Horowhenua,

Sustainable funding that provides facilities, technology, resources and services that deliver social, cultural and economic benefits to Horowhenua communities,

Communities and individuals have free and ready access to information, ideas and works of the imagination important to all aspects of their lives,

Independent learners have educational and training opportunities that support their literacy, knowledge and skill development,

Local communities and individuals have access to the digital world and are confident users of technology and able to participate effectively in the digital world, free from unnecessary restrictions charges,

Local communities are strengthened and individuals have opportunities to participate in community life and decision making.

Positive A

ging

LTCCP

Economic Development

Ed

uc

atio

n

Yo

uth

Facilities, resources and

services that deliver

social, cultural and

economic benefits.

Str

ate

gic

and

opera

tional

part

ners

hip

s that

develo

p o

ur

Socia

l Capita

l.

Local access to the digital world and the skills to

participate in an informed way.

Local com

munitie

s are

strengthened and

individuals

participate

in

comm

unity lif

e.

Access to

info

rmatio

n,

ideas a

nd w

ork

s o

f imag-

inatio

n im

porta

nt

to a

ll aspects

of life

and

for life

long le

arn

ing

.

Te Horowhenua

Trust Aims mapped

to HDC Strategies

Trust a

ims m

ap

pe

d to

HD

C stra

teg

ies

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Service Delivery

To provide an

excellent customer-driven library service in

Horowhenua District.

Just say yes

The Trust is very aware that we are in a period of change. Te Takere will be a game changer for us and, in preparation, this year we focussed our efforts in areas to support delivery of our key roles now and into the future. It has involved embracing every opportunity that has come our way and saying “yes” a lot! We are:

Reviewing and editing our collection to ensure it is strong and relevant to our community. This has included moving towards more patron driven acquisitions, particularly with adult books and magazine subscriptions,

Working closely with education providers to ensure we support their work with our children of all ages, and specifically to foster a love of reading for pleasure because literacy is the key to all other academic success,

Trialling a range of different activities and events that would usually be found in a community centre in order to start developing a programme to be delivered from Te Takere,

Supporting staff to undertake professional development in order to ensure have the right staff with the right skills to support the expanded learning centre and information gateway roles Te Takere will make possible,

Working closely with history, genealogy and iwi groups to plan how we will work in together to mini-mize duplication, and with national institutions, like Te Papa and National Archives, to ensure our local content is easily accessible locally,

Encouraging voluntary and unpaid work which is of increasing importance in our society. We believe we have an obligation to provide opportunities to per-form real work which adds value to our community, whether it is to support people in training, between jobs, under employed or in active retirement. Studies have shown that people live longer, happier lives if they are involved in their communities.

Key Roles the print library, supporting the joy of reading, for

recreation, for interest, or to support a hobby, a community centre, offering a welcoming community space where citizens feel they belong,

a learning centre, providing opportunities to learn new information skills for the knowledge society, and supporting life-long learning,

an information gateway, using multi-media to help people find answers to their questions,

a centre for harbouring and making available resources pertaining to our local area. Ema Jacob

Operations Manager

Missio

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2.

3.

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Lending

Horowhenua libraries are widely used and valued by Horowhenua residents.

Action Performance Measures

Promote library resources and services to existing and potential members during the launch of the new library cards.

50% of resident population are library members: not achieved.

Carry out a user satisfaction survey. Achieved: At least 85% user satisfaction

“A good library will never be too neat, or too dusty, because somebody will always be in it, taking books off the shelves and staying up late reading them”. Lemony Snicket

217,750 visits to the libraries this year.

We are 10 % busier than last year; Shannon Library had the largest increase with 34% more people using the library.

11,233 individuals are active borrowers which is up about 2.5% from last year, but they are borrowing less: down 1% on last year. This trend has been noticed around the country and is probably a reflection of the growing use of the internet to find information online and the rising interest in ebooks.

Notable exceptions to the trend of falling issues are Teen Fiction up 15% and Large Print up 3%. At Shannon Library Junior Fiction is up 28% and Adult Fiction up 12%.

99% Satisfaction Rating

During the year we surveyed our library users and 99% of the respondents agreed that library staff are courteous, friendly and meet expectations — in fact 66% strongly agreed!

Horowhenua has fewer registered members as a percentage of ratepayers than many other Districts: 37%. However we issue more library items per capita than most of the others, welcome more visitors and answer more inquiries.

You don’t need to be a member to use the library services, internet, collections or facilities. The survey helped us discover that nearly 25% of library members do not necessarily use their own library card and a significant number only register 1 person in the household.

Deborah Macdonald Team Leader Circulation

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The District’s resources of people’s knowledge, skills, wisdom, creativity and flair are

maintained, nurtured and increased.

Action Performance Measures

Horowhenua residents of all ages are confident users of technology and able to participate effectively in the digital world.

Achieved: Four digital literacy programmes will be facilitated by library staff, teaching basic IT skills to support workforce develop-ment and small business informational needs.

A Learning Centre

One of our key roles as a public library is to support life long learning. Knowledge is not only available in books and this year we trialled a

number of programmes to support our library users in their quest for knowledge.

,

Barbara Lucas

Programmes and Services Manager

“Doing research on the Web is like using a library assembled piecemeal by pack rats and vandalized nightly”.

Robert Ebert

Book a Librarian Very popular, free one hour session with a librarian on any topic you need help with. We have helped people get onto social net-works like facebook, set up email accounts, scan and send photos, use MS Office to make greeting cards and posters, write CVs, apply for Studylink, use databases and research family history online.

Bytes for Lunch A short series of half hour lunchtime talks about different online tools useful in the workplace.

What is Social Media? A talk about many of the different sites available, how they work, how they differ and the value they might add.

Getting the most out of your library card

Half hour workshop demonstrating the new features on the libraries website including placing reserves, renewing, writing reviews and making recommendations for purchase.

What is VoiP? A workshop for the business community explaining how Voice over IP works and how it can be a useful productivity tool in the workplace.

Demonstrations and workshops

We hosted a wide range of individuals and organisations who demonstrated skills like spinning, flax weaving, stone carving and song writing.

Programmes

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What can you get for $6.85 a year? A collection of 76,500 library items, including books, DVDs, magazines, newspapers, audio books and jigsaws, videos, most of which can be taken home for free!

We spent just under $205,000 this year on new library items, which sounds a lot but is only $6.85 for every man, woman and child who lives in the District.

Member Driven Acquisitions We buy about 95% of the titles that library members recommend for purchase on the premise that if one person cares enough to suggest a book then others will probably want to read it too — and it’s all part of our ‘customer-driven’ mission.

60% of library users who are not registered members read while they are at the library, mostly magazines and newspapers but teenage and children’s books too, so our magazines are a significant and much used collection. We do have a good range for a District of our size, thanks largely to the many businesses who sponsor titles. With Te Takere only a year or so away it is time to consider what new titles we could look at subscribing to. Horowhenua and Waiopehu Colleges both asked their library users to rate the teen titles and we asked public library visitors to rate over fifty potential new titles.

Digital Resources A large amount of quality digital content is only available if you pay for it. We have joined with other public libraries in NZ to negotiate a good deal on subscriptions for digital con-tent. Library members can now access a wide range of fulltext databases by logging in on the library website: www.library.org.nz.

Subject matter includes: business, industry, management, science, the arts, health, history and even full text daily newspapers from around the world in many different languages (you can even download the New York Times daily crossword). Oh and ebooks are just around the corner!

" Why buy a book when you can join a library“

Ricky Gervais

Most Borrowed Library Items 5 most borrowed novels this year were all murder mysteries (Lee Child and J.D. Robb),

4 of the top 5 Large Print were romances (the other one was a Western),

Top DVD: Grand Designs Series 5 (followed by four 1960 classics including Spartacus, Kelly’s Heroes and Houseboat)

Most popular Non fiction: The Secret, Laptops for Seniors, Carters Everything Vintage (collectibles) and The Comforts of Home (thrifty interior design ideas)

Magazines (in order of popularity): NZ House and Garden, NZ Memories, New Scientist and The Simpsons Comic (yes really).

Larissa Dixon Team Leader Collections

Collections

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Wendy Fraser

Team Leader, Children and Teens

Horowhenua is New Zealand’s foremost region in taking joint responsibility for the

achievement of our children.

Action Performance Measures

HLT will provide a programme of events supporting literacy and learning to children from 0-12 and to parents and educators.

Achieved: Six programmes or activities sup-porting literacy and learning are delivered throughout Horowhenua.

“The more you read, the more things you will know. The more that you learn, the more places you'll go. Dr Seuss

Literacy is the key to everything

Public libraries are the gateway between learning and loving to read. Where schools teach kids how to read it is parents and libraries who foster a love of learning for life through teaching our children from a young age to feel comfortable in the library, to love reading and to recognize the enormous value to be gained by ‘learning stuff’. We made the decision early on this year to simply say YES

to everything and then figure out a way to make it happen. This has resulted in really strong relationships with Schools and a wide range of activities being carried out.

Books for Babies Every newborn in the District is presented with a pack including a free book and information about the importance of reading to babies.

Toddler Time A singing, nursery rhyme and storytelling session held weekly during term-time at Foxton, Shannon and Levin libraries.

Early Childhood Centres

Regular visits to various early childhood centres throughout the District and reciprocal visits to the Library for stories and occasional music.

Schools 6 schools regularly visit the libraries . We hosted 70 class visits to Levin alone this year, including the entire Manakau School four times a term.

Whanau Nights St Joseph’s visit Levin Library each term; a special evening event just for their parents, children and teachers. No computers—just books and library based activity. Scavenger hunts are popular!

Maths is Fun Promoting numerical literacy to primary school children, this pro-gramme is offered at all 3 libraries during mid winter school holidays.

Crafts Craft based programmes during Spring and Autumn school holidays plus after school crafts at Shannon Library during term time.

Winter Warmers & Summer Reading

Incentive based reading programmes delivered for six weeks over Win-ter and again over the Summer school holidays.

Children

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“Life is tough, but it’s tougher if you’re stupid” John Wayne

M any more programmes and activities were held during the year, at all 3 libraries including …

Teen iread : reward based Summer Reading Programme,

Amnesty International school project display,

Teen art competition at Shannon Library,

Pizza and Playstation evening,

Pyjama Party,

Teen bookmark competition.

Young people in Horowhenua are given opportunities in which their achievements and success can be celebrated.

Action Performance Measures

Horowhenua Library Trust will record and promote the achievements of Horowhenua youth and promote activities with a youth focus.

Achieved: Six activities or events will be held or used to celebrate our youth, including digital resources on Kete Horowhenua digital archive, static displays and live performances.

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D uring NZ Music Month talented teens took part in a series of ‘guerilla perfor-mances’ which entertained astonished visitors to Levin during May.

People were caught unawares by beautiful guitar, flute and violin soloists, toe tapping folk singers, a Ukeladies troupe, a raucous Kapahaka group and this trio of beautiful harmonists.

S o what else could we say but YES when asked if we could open the library one evening a week so NCEA students from Waiopehu and Horowhenua Colleges could study together.

Talk about private-public partnerships: Altrusa donated money to pay staff, Inspirenet kicked in with free wireless and HDC—Youth Voice sponsored a set of NCEA Study Guides. Study Nights are now a regular thing with around 20 –25 coming each time. We purchased a subscription to BreakOut, a database of hundreds of scholarships available for students wanting to advance their studies through tertiary study or professional development.

15% more

teen books

borrowed

Teens

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Horowhenua has a higher proportion of Seniors than many other Districts in NZ. This means that an important part of what we do is meeting the needs of Seniors of all ages, from bouncing baby boomers newly retired from big cities to nodding nonagenarians happy to relax with an audio book delivered to the door.

Collections We spend about 20% of our resources budget on

collections of specific interest to seniors. About $30,000 was spent buying large print books plus another $4,000 on audio books. We

supplement our audio book collection with 3 monthly loans from National Library to ensure we always have a good selection on hand. Magazines, newspapers, jigsaws and DVDs are also enjoyed by patrons of all ages.

Homelink Our Homelink service provides a door to door delivery of library resources to people who are unable to visit the library. This service is possible through volunteers who help staff select books and do the pick ups and deliveries. This service is available for rest-home residents too. The numbers of registered Homelink clients vary but we have had up to 80 clients at times this year.

ebooks Internationally ebooks are proving very popular with older borrowers — even more so than with teenagers, apparently, who prefer their leisure reading to be offline. ereaders weigh very little and turning pages is a broad swiping motion which is much easier for arthritic hands. Text size can be increased which makes them suitable for those of us with tired eyes.

Library staff have spent time getting familiar with a range of different ereaders available. This is so that we can help people get started once ebooks are available from a library or the library website—which will be soon!

Seniors have access to information and resources to meet their current and future needs.

Action Performance Measures

A range of collections and services crafted specifically with Seniors in mind and to suit a range of physical abilities and interest levels, is available at Horowhenua Libraries.

Achieved: Outreach service for housebound clients is promoted in three events or activi-ties.

Substantially achieved: 20% of the collections budget is spent developing large print and audio collections to support an increasingly aging community.

Jenny Foreman JP

Services to Seniors

“I find television very educating. Every time somebody turns on the set, I go into the other room and read a book.”

Groucho Marx

Seniors

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Local Resources

Deeply Local Australian librarian Kathryn Greenhill writes and speaks internationally about the concept of “Deeply Local” and describes very well what we do here in Horowhenua.

Kathryn believes there are five necessary components for libraries to thrive in the new digital era in which we are moving: community, content, local linking, linking to the world and knowing possibilities.

It can be summed up as local libraries needing to know and look after ’the local’ really well. More specifically it is about looking after, writing and making available local material and that is why Kete Horowhenua has been so successful not only here in Horowhenua but throughout the country and internationally too.

Kete Horowhenua Kete Horowhenua is a key resource for local information about Horowhenua, including resources held outside the district. 1839 new items were added to the Kete Horowhenua online database this year which means you can now search not only the 22,000 digital resources created here in Horowhenua but content created by over 120 repositories throughout NZ including Te Papa, National Library and National Archives.

A particular highlight this year is the large increase in content being created by volunteers. Significant inroads have been made into transcribing and digitizing the Otaki sitting of the Maori Land Court Minute Books. The Dick Denton collection is being added to daily as are fascinating Search and Rescue stories from the Tararuas.

The site is very popular with a 51% increase in unique visitors to the site this year, up to 123,291. We have done a lot of public speaking this year and love showing gems from the collection to community groups.

Heritage Facilities Te Takere will house the collections and activities of the local history sector, including the Levin Family History Group and the Horowhenua Historical Society. The Society has done a sterling job for 40 years collecting over 10,000 historical photographs plus a collection of archives and ephemera. The photographs have now been digitized and almost all of them are available online. However there is much work to be done on the archives and the processing of ongoing donations—of which there is a steady stream. It is hoped that the enhanced profile of the sector in Te Takere will encourage a new wave of enthusiastic volunteers to help care for our local historical treasures.

Pippa Coard

Coordinator, Kete Horowhenua

“History will remember me kindly because I intend to write it”

Winston Churchill

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Living Rooms of the Town

The Trust delivers library services from 3 libraries: Levin, Foxton and Shannon. It also services a small community library operated by volunteers in the grounds of Tokomaru School.

These libraries are the living rooms of the towns, catering for a diverse range of uses, interests and needs. Shannon is an interesting case in point. Visitor numbers there almost equal those at Foxton and yet only about a quarter of the books and other library items are borrowed. Shannon is a very pleasant library to be in whereas Foxton Library is desperately in need of replacement—which is on the radar.

Te Awahou-Niewe Stroom

Art at Shannon

Shannon Library is the library where we can best promote an appreciation of the arts as required in our Trust Deed. The walls are perfect for display and we have had a series of very successful exhibitions throughout the year including the work of painters, quilters and potters. Each exhibition runs for 3 months and we encourage sales as anything that develops the local arts economy has got to be a good thing—and the Trust gets a small commission in return.

Levin Library hosted Wendy Hodder as Artist in Residence during June. Many people of all ages drew up chairs and watched a while as she sawed and hacked and chiseled and filed blocks of Oamaru stone into beautiful birds, lizards and cats.

We have held 3 book launches by local authors at Levin Library with good interest and attendances at each. Just a taste of what will be happening in Te Takere.

Our Libraries

Kiri Nga Rita

Coordinator, Foxton & Shannon

"When you are growing up there are two institutional places that affect you most powerfully: the church, which belongs to God, and the public library, which belongs to you."

Keith Richards

The existing Foxton Library got a facelift thanks to local muralist Wendy Hodder.

The new multi-use complex at Foxton will include library premises. Concept drawings have been prepared. A Trust has been formed with an immediate objective of raising $12m and securing the required land. We are hopeful that the Library component will be built as Council has funding set aside already to build a new Foxton library building.

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Te Takeretanga o Kura-Hau-P

Te Takere is the 4,000m2 culture and community centre that is to be built in Levin. It will incorporate the existing Levin Library and the old Countdown building and is scheduled to commence in October 2011.

An exciting array of spaces will be included:

The Takere – a public exhibition & social gathering space,

Meeting rooms for groups to use, with after hours access,

Library materials and resources,

A Youth Area,

A Children’s Area,

A comfortable and accessible Seniors Area,

A Te Ao Maori space,

A Local History area,

Heritage and Genealogy Storage and Research Facilities,

A Content Creation and Recording Studio,

A Formal Learning Area,

A Café,

Exhibition and performance spaces.

Project Steering Group The Trust’s partners in the project are Horowhenua District Council and the Muauopoko Tribal Authority. The team responsible for bringing Te Takere to fruition comprises:

Council : David Clapperton and Wally Potts,

Te Horowhenua Trust: Sharon Crosbie and Joann Ransom,

Muauopoko Tribal Authority: Steve Hirini,

Architect: Brian Elliot,

Library Consultant: Nicki Moen,

Fundraising : Bev Edlin,

Marketing: Sarah Ryder.

Fundraising

A separate team chaired by George Sue has been established to find the $2m Community Fundraising component of the $7m project budget. Members include Stewart Thompson, Rosalie Blake, Cr Garry Good and Cr Tony Rush.

Tom’s Team

Well known local man Tom Hayes opened the doors of

the old supermarket one day and started work ripping out

the old interior.

Within days a solid crew of volunteers: men, women,

young, old, retired, unemployed and local

contractors had gathered around, stripping out wiring,

salvaging scrap metal, selling everything with a

value on TradeMe.

A few months later $20k of funds have been raised and

about $60,000 of demolition costs have been saved.

Gotta love this town ...

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“Technology... the knack of so arranging the world that we don't have to experience it.

Max Frisch

Public Internet A primary objective this year was for Horowhenua residents to have access to free, fast and reliable internet at the libraries. An increasing number of us can no longer afford landlines or internet. More and more of what people need to ‘do’ needs to be done online and it is important that the library helps bridge that digital divide to ensure all residents have access to the digital world and the skills to operate ef-effectively in it.

Public internet computers have been replaced at all libraries thanks largely to the generosity of Horowhenua Community Trust. The quality computers now available has resulted in a significant upswing in demand and we regularly have queues of people patiently waiting for a computer. We ration access to 30 minutes per person per day in order to share the service as much as possible but we also have pay computers at each site for those who do not have time to wait for a free one or who want to spend more than a half hour at their business.

Cafenet Wireless is now available at Shannon and Levin which means that people with their own laptops and smart phones can access the internet at a very reasonable cost: $10 for any 24 hour period which is significantly cheaper than our $5 an hour service. Library as Learning Centre Our Book a Librarian service has proven a very successful way to fulfill our role as a learning centre, providing opportunities to learn new information skills. The service enables anyone to book a librarian for an hour of individual tuition on anything they need help with. Most of the assistance has been around using word processing soft-ware, writing CVs, setting up email, using social media like Facebook to connect with family and friends but we have also helped people find new authors to read .

Koha The library management software we developed here in Levin in 2000 is an international success. Last year it was the most purchased product by public and academic libraries alike in the States and is rapidly gaining ground in Asia, Europe, Africa and South America.

A Koha Conference was held in Wellington to celebrate the 1o year anniversary. Muaupoko did us proud hosting delegates from all over the world at a powhiri held at Kawiu Marae. This concluded a very well received visit to Levin which included a visit to Te Kokiri to view weaving and pounamu carving, a walk to Lake Papaitonga and a Mayoral Reception.

Technology

30% of those

whose primary

library is Levin or

Foxton use library

internet; this

leaps to 65% at

Shannon,

60% of the people

who use internet

at the libraries

read magazines,

newspapers and

books while they

are there.

Joann Ransom

Head of Libraries

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Spinning Gold from Straw

The Trust receives the bulk of its funding through a grant from Horowhenua District Council, essentially rates. We aim to raise about 15% of our operating income through other sources.

The Trust recognizes that user charges are a barrier to using the library and try hard to keep these low, preferring instead to focus our attention on seeking sponsorship, grants and donations so that we can keep user charges minimal.

Financial Summary

Celle Gore Finance and Administrtaion

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exp

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Supporters

Major Funder Horowhenua District Council Library Card Sponsors Garden of York Ian Ransom—Plumbing Solutions Whispers Café Levin Paper Plus HDC - Homecare and Elderberries Funding bodies The Southern Trust

Central Hawkes Bay Council – Wairarapa REAP Eastern and Central Community Trust Artwork and design for the Library

Wendy Hodder

Businesses Colbert Cooper Chartered Accountants PSIS Levin Cherry Pie Bernina Trellis Centre Cullinane Steele Horowhenua Motors Co Ohau River Cottage Hilary Hudson Sarelle Kennels Webdezine Trellis Centre Masonic Rest Home Summerset Retirement Village Unique Stuff Punahau Early Childhood Centre InspireNet

Clubs and Organisations

Friends of Horowhenua Libraries Altrusa Horowhenua Grey Power Levin Golf Club Age concern Horowhenua Spinners and Weavers

Scandinavian Koha

libraries and vendors who made

donations to Te Takere

Sjøkrigsskolens Bibliotek Royal Norwegian Naval Academy

Hordaland Fylkesbibliotek Hordaland county library

Buskerud Fylkesbibliotek Buskerud county library

Time Kommune, Skolebibliotek (10 school libraries in Time municipality)

Biblioteken i Halland (Halland libraries)

Stockholm International Peace Research Institute (SIPRI).

Libriotech (Koha Support company)

We have been the recipients of significant generosity this year and we

sincerely thank all those who have supported us throughout the year.

21

Supporters

Many individuals also support us financially during fundraising events

and other promotions.

Alvine Marshall

Anne Barnao

Anne Hunt

Arthur Martin

Avis Sinclair

Barbara Easterbrook

Barbara Rolls

Beth Bolton

Caroline Stuart

Cath Bennet

Celia Stewart

Chris McLennan

Christine Gardner

Mrs. Coulter

D Ruth Bavousett

Daphne Barrett

David Latham

Diane Edyvane

Elaine Browning

Mr. & Mrs. Elphick

Evelyn Buckley

Felicity Norris

Flea Willing

Frank Dement

G. Harris

Hamish McDonald

Helen Blake

Helen Harrison

Janet Tillson

Jenny Forman

Jill Cooper

Jill Yap

Joan Cox

Joann Ransom

John & Nellie McKenzie

John Morrison

Judith Kincaid

Judith Tate

Julie Stichbury

Mrs. Kappagh

Karen Snow

L. Morrell

Lorraine Macarthur

Lynne Laris

Lynne Long

M. Henry

M. Robinson

Magnus Enger

Margaret & John Graumans

Mary Lillian Perry

Mrs. Matthews

Maureen Coolen

Max Smeed

Michelle Fraser

Naomi Dement

Pam Sanson

Pauline Hailwood

Mrs. Prisk

Rosalie Blake

Sandra Lawrence

Sheila Wood

Mrs. Stantiall

Su Kai Haslam

Sue Brown

Tony & Pauline Sheppard

Trish Sharp

Tui Alexander

Valerie Jackson

Walter Hanson

Large Print Sponsorship

This year was our best year ever; We raised $10,400 for new large print books.

22

Fees and Charges

Lending Charges New Fiction $2 for 2 weeks

New DVDs $2.50 for 1 week

New Magazines $1 for 1 week

Some audio books $5 for 3 weeks

Refundable deposits Drivers Licence Guides $25

Temporary visitors $20

Overdues 7 - 13 days overdue $1

14 - 20 days overdue $2

4 weeks overdue $5

Baycorp administration fee $10

Reserves Generally $1

Interlibrary loans $5 base charge

Internet 30 minutes standard free

Premium $5 an hour

Printing and copying A4 black and white 20c

A4 colour $2

A3 black and white 40c

A3 colour $4

Laminating (Levin only) A4 $3

A3 $4

Book covering Depending on size / style $3 — $5

Faxes Sending $2 + 50c page

Receiving $1 up to 5 pages

23

Membership

Joining Membership is free for anyone who lives, or pays rates, in the Horowhenua, Kapiti or Manawatu Districts, A person can join at Levin, Foxton or Shannon Library and may borrow and return items at any of these libraries, Two forms of ID are required - one that has a current address printed on it, like a bank statement or letter, and the other with their signature or photograph, At the time of signing the new card we'll ask for agreement to some conditions, The normal category of membership is adult, An adult member may join a child under the age of 16 years by acting as guarantor, Children under 16 years of age without a guarantor may join as minor members. Minor members shall have limited borrowing privileges, Members whose mobility, sight or hearing are impaired may be entitled to a Privileged Membership which may include such privileges as the Trust determines from time to time.

Conditions of use In accepting and signing the new library card, agreement is given to:

Return all items borrowed by the date due Pay for overdue, damaged or lost item/s and any debt collection fees Advise the library of any change of address Acknowledge the same responsibility for any child they have registered.

Borrowing A current library card must be presented each time material is issued. The member is responsible for all items borrowed on his/her Library card. The member agrees to accept charges incurred from overdue, lost or damaged items, and item rental and reservation fees.

Relevant Policies

Membership Privacy Computer Use Unaccompanied Children Standards for Customer conduct

24

Service Performance

HDC Strategies Priority

Outcomes

Action Measure

Positive Aging Seniors have access to information and resources to meet their current and future needs

A range of services and collections crafted specifically with Seniors in mind and to suit a range of physical abilities and interest levels, is available from Horowhenua Library Trust.

Outreach service for house-bound clients is promoted in 3 events or activities.

20% of the collections budget is spent developing Large Print and audio book collections to support an increasingly aging community.

Youth Young people in Horowhenua are given opportunities in which their achievements and success can be cele-brated.

Horowhenua Library Trust will record and promote the achievements of Horowhenua youth and promote activities with a youth focus.

6 activities or events will be held or used to celebrate our youth, including digital resources on Kete Horowhenua digital archive, static displays and live performances.

Education Horowhenua is New Zealand’s foremost region in taking joint responsibility for the achievement of our children.

Horowhenua Library Trust will provide a programme of events supporting literacy and learning to children from 0 – 12, and to parents and educators.

6 programmes or activities supporting literacy and learning are delivered throughout Horowhenua.

Economic

Development

The District’s resources of people’s knowledge, skills, wisdom, creativity and flair are maintained, nurtured and increased.

Horowhenua residents of all ages are confident users of technology and are able to participate effectively in the digital world.

4 digital literacy programmes will be facilitated by library staff, teaching basic IT skills to support workforce develop-ment and small business in-formational needs.

LTCCP Horowhenua libraries are widely used and valued by Horowhenua residents.

Promoting library resources and services to existing and potential members during the launch of the new library cards.

50% of resident population are library members.

Horowhenua Library Trust will carry out a user satisfaction survey.

At least 85% user satisfaction rate.

The Libraries will be accessible during advertised opening hours

Achieved

25

Performance Page Narrative

Achieved: 4 14 Flyer developed: used at Age on the Go Expo and also distributed through the (2) Cancer Society and District Nurses. Spoke to (3) Shannon Baptist CWI and the (4) Levin Baptist Church.

Substantially achieved

14 15.28% of our acquisitions budget was spent on collections targeted specifically to seniors ie large print and audio books. Additionally, other collections which are heavily used by Seniors were developed with their specific needs and interests in mind ie periodicals, newspapers and DVDs.

Achieved: 6 13 (1) A Teen bookmark design completion: PSIS sponsored prize and 3000 |printed and distributed throughout the District, (2) project assignment created by Waiopehu College students displayed in Levin Library, (3) Teen art compettion at Shannon, (4) Pizza and Playstation evening at Levin included Teens we brought down from Shannon and Foxton, (5) NZ Music month featured 4 acts by teen performers, (6) Write article in the Chronicle about ‘dark’ fiction and its importance to our young people.

Achieved: 6 12 (1) Regular visits from early childhood centres at Shannon and Foxton, (2) Books for Babies : packs for newborn babies about early literacy, (3) Toddler time run during term time at all 3 libraries, (4) Spoke at a young parents workshop at Ohau Playcentre, (5) participated in regular school network meetings, (6) Duffy Books in libraries, (7) Holiday programmes including: Maths in fun, Spring Crafts, Shannon daily crafts, Summer reading, Teen PJ party, Winter Reading programme.

Achieved: 12 10 A number of these activities were delivered more than once: (1) Book a lIbrarian programme , (2) Posters and displays in library, (3) weekly Library column, (4) Bytes for lunch, (5) Train the trainer for staff, (6) VOIP workshop.

Additionally, a number of different ereaders have been purchased to help staff prepare to assist public when ebooks are downloadable from the library website in early 2011/2012.

Not—Achieved

9 We have issued 9,632 new library cards this year through a reregistration exercise which equates to 37%. 11,233 active library members used their card over the last 2 years. This is up 2.5% over last year. An analysis of the Public Library Statistics showed that Horowhenua issues more items per capita, has more visitors and carries out more transactions than most other libraries — including those reporting membership rates of 86%.

Achieved 9 During the year we surveyed our library users and 99% of the respondents agreed that library staff are courteous, friendly and meet expectations; 66% strongly agreed.

Substantially Achieved

Foxton Library was closed for 2 hours following a break in while glass and blood was cleaned up.

26

Personnel

Trustees Chair Sharon Crosbie Deputy Chair George Sue Trustees Heather Birrell Bernie Wanden

Council Representatives Garry Good

Tony Rush

Management Team Head of Libraries Joann Ransom BA, NZLS Cert., RLIANZA

Customer Services Manager Ema Jacob BA, Dip. LIS., RLIANZA Marketing Manager Barbara Lucas BA, Dip. Lib.

Librarians

Circulation Deborah Macdonald Dip. LIS Collections Larissa Dixon Dip. LIS Children’s and Teens Wendy Fraser Dip. LIS Shannon & Foxton libraries Kiri Nga Rita NZLS Cert. Seniors Jenny Forman JP Interloans Beth Bolton Dip. LIS. Weekend Supervisor Heather McGregor NZLS Cert.

Library Assistants

Aroha Allan, Rosa Grey, Sandra Hansen, Danny Hodgson, Dorothy Kauri, Linda Lake, Trish Overend, Corinne Smith, and Douglas Tristram BA, Dip. Tch.

Support Staff

Finance and Administration Celle Gore BSc, MBA, Dip. LIS, RLIANZA Kete Horowhenua Pippa Coard M. Comp.

Branch Provisioning Johnny Pakau Student Assistants Levin: Mariah Hori Te Pa, Samuela Mahuinga, Caleb Jago-Ward,

Sol Jones, Monique Rakena and Emma Wilson.

Foxton: Kayla Astwood and Broddy Stammers.

Plus 3 volunteers who work practically fulltime , Plus the hours of about 4 full time staff worked by 40 regular volunteers,

Plus 75 friends who help whenever we ask.

27

Directory

NATURE OF BUSINESS Library, Cultural and Community Operations

ADDRESS

Bath Street

Levin

IRD NO.

67-459-482

SETTLORS Horowhenua District Council

DATE CREATED 1st January 1997

TRUSTEES S Crosbie (Chairperson

P H Birrell

A Smith (since resigned)

G Sue

B Wanden

ACCOUNTANTS Colbert Cooper Limited

Chartered Accountants

275 Oxford Street

Levin

AUDITOR Audit New Zealand, Wellington

on behalf of the Auditor-General

BANKERS Westpac

SOLICITORS Simpson Grierson

CHARITIES REGISTER NUMBER CC20328

WEBSITE www.library.org.nz

28

Financial Accounts

2011 2010

$ $ $

Income (Note 3)

Council Grants & Contracts 1,073,000 966,165

Lending Charges 54,453 56,765

Other Operating Income 39,907 92,914

Sponsorship & Donations 54,453 35,366

Interest Received 8,027 10,210

Other Income 17,930 39,474

Total Income 1,247,770 1,200,894

Expenses (Note 4)

Staff Expenses 751,491 710,190

Resources 247,601 328,781

Operations 111,837 157,443

Communications 22,489 24,549

Equipment 13,327 16,565

Premises 58,147 56,135

Total Operating Expenditure 1,204,892 1,293,663

NET SURPLUS (DEFICIT) ATTRIBUTABLE TO THE TRUST $42,878 ($92,769)

Other Comprehensive Income

Other Comprehensive Income - -

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO THE TRUST $42,878 ($92,769)

The notes annexed to these Financial Statements form part of the Statements and should be read in conjunction therewith.

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE, 2011

29

Financial Accounts

Contributed Retained

Capital Earnings Total Equity

$ $ $

Balance as at 1 July 2009 782,803 192,392 975,195

Total comprehensive Income for the year - (92,769) (92,769)

Balance as at 30 June 2010 782,803 99,623 882,426

Balance as at 1 July 2010 782,803 99,623 882,426

Total comprehensive Income for the year - 42,878 42,878

Balance as at 30 June 2011 782,803 142,501 925,304

All of the balances disclosed above are attributable to the Trust.

The notes annexed to these Financial Statements form part of the Statements and should be read in conjunction therewith.

STATEMENT OF CHANGES IN TRUST EQUITY FOR THE YEAR ENDED 30 JUNE, 2011

30

The notes annexed to these Financial Statements form part of the Statements and should be read in conjunction therewith.

2011 2011 2010

$ $ $

TRUST CAPITAL $925,304 $882,426

This Capital is Represented by:

CURRENT ASSETS

Cash and Cash Equivalents (Note 5) 104,655 117,997

Debtors and Other Receivables (Note 6) 19,595 35,301

Investments (Note 7) 205,307 78,754

329,557 232,052

Total Current Assets 329,557 232,052

NON-CURRENT ASSETS

Property, Plant and Equipment (Note 8) 869,271 843,778

Intangible Assets (Note 9) 47,513 74,851

916,784 918,629

Total Non-Current Assets 916,784 918,629

TOTAL ASSETS 1,246,341 1,150,681

CURRENT LIABILITIES

Employee Benefit Liabilities (Note 11) 59,316 61,083

Social Club 1,189 833

Creditors and Other Payables (Note 10) 71,983 85,524

Community Centre Fund (Note 12) 164,051 98,007

296,539 245,447

Total Current Liabilities 296,539 245,447

NON-CURRENT LIABILITIES

Employee Benefit Liabilities (Note 11) 24,498 22,808

24,498 22,808

TOTAL LIABILITIES 321,037 268,255

NET ASSETS $925,304 $882,426

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE, 2011

Financial Accounts

31

The notes annexed to these Financial Statements form part of the Statements and should be read in conjunction therewith.

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE, 2011

Financial Accounts

2011 2010

Cash flows from operating activities $ $

Cash was provided from

Receipts from customers and grants 1,229,172 1,177,369

Interest Received 8,077 11,178

Net GST 13,853 (10,431)

Total cash provided from operating activities 1,251,102 1,178,116

Cash was disbursed to

Payments to suppliers and employees (1,007,911) (963,109)

(1,007,911) (963,109)

Net cash inflow from operating activities 243,191 215,007

Cash flows from investing activities

Cash was received from

Maturing/Sale of investments 79,069 73,420

Movement in Community Centre Fund 65,681 98,007

144,750 171,427

Cash was applied to

Purchase of investments (205,258) -

Purchase of intangibles (7,388) (50,108)

Purchase of fixed assets (188,637) (247,495)

(401,283) (297,603)

Net cash outflow from investing activities (256,533) (126,176)

Net increase in cash held (13,342) 88,831

Opening cash brought forward 117,997 29,166

Ending cash carried forward 104,655 117,997

Composition of cash

Westpac Cheque Account 21,173 26,897

Westpac Savings Account 61,382 91,100

Westpac Term deposits < 3 months 22,000 0

Petty Cash Imprest 100 0

104,655 117,997

32

Financial Accounts

The notes annexed to these Financial Statements form part of the Statements and should be read in conjunction therewith.

STATEMENT OF CASH FLOWS cont FOR THE YEAR ENDED 30 JUNE, 2011

2011 2010 Reconciliation of operating surplus (deficit) to net cash from operating activities $ $ Net Surplus (Deficit) 42,878 (92,769)

Add non cash items Amortisation 27,338 31,414

Depreciation 154,096 153,206 Books written off 26,094 110,217

Non books written off (3,105) (509) Donated Items (5,907) (8,604) Loss on Disposal 0 8,230

Changes in Working Capital Items Decrease (increase) in accounts receivable (1,154) (8,797)

(Decrease) increase in accounts pay-able (11,185) 33,715 Decrease ( increase) in GST 14,136 (11,096)

243,191 215,007

The GST (net) component of operating activities reflects the net GST paid and received with the Inland Revenue Department. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningfuly information for financial statement pur-poses.

33

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE, 2011

(1) STATEMENT OF ACCOUNTING POLICIES Reporting Entity Te Horowhenua Trust (the Trust) is a charitable trust incorporated in New Zealand under the Charitable Trusts Act 1957 and is domiciled in New Zealand. The Trust is controlled by Horowhenua District Council and is a Council Controlled Organisation as defined under section 6 of the Local Government Act 2002, by virtue of the Council's right to appoint the Board of Trustees. The primary objective of the Trust is to promote, provide and maintain comprehensive library services within the District, rather than making a financial return. Accordingly, the Trust has designated itself as a public benefit entity for the purposed of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS).

The financial statements of the Trust are for the year ended 30 June 2011. The financial statements were authorised for issue by the Board of Trustees on the 9th September 2011. Basis of Preparation The financial statements of the Trust have been prepared in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP). These financial statements have been prepared in accordance with NZ GAAP. They comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

The financial statements have been prepared on a historical cost basis. The financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of the Trust is New Zealand dollars.

The Trust adopted the following revisions to accounting standards, during the 2010 financial year, which had a presentational or disclosure effect only.

The following amendments and revision to standards have been early adopted: NZ IFRS 7 Financial Instruments: Disclosures — The effect of early adopting these amendments is the following information is no longer disclosed:

the carrying amount of financial assets that would otherwise be past due or impaired whose terms have been renegotiated; and The maximum exposure to credit risk by class of financial instrument if the maximum credit exposure is best represented by carrying amount.

NZ IAS 24 related Party Disclosures (Revised 2009) - The early adoption of NZ IAS 24 has had no effect on related party disclosures.

34

Standards and interpretations issued but not yet effective Standards, amendments, and interpretations issued but not yet effective that have not been early adopted, and which are relevant to the Trust are:

NZ IFRS 9 Financial Instruments will eventually replace NZ IAS 39 Financial Instruments: Recognition and Measurement. NZ IAS 39 is being replaced through the following 3 main phases: Phase 1 Classification and Measurement, Phase 2 Impairment Methodology, and Phase 3 Hedge Accounting. Phase 1 on the classification and measurement of financial assets has been completed and has been published in the new financial instrument standard NZ IFRS 9. NZ IFRS 9 uses a single approach to determine whether a financial asset is measured at amortised cost or fair value, replacing the many different rules in NZ IAS 39. The approach in NZ IFRS 9 is based on how any entity manages its financial instruments (its business model) and the contractual cash flow characteristics of the financial assets. The new standard also requires a single impairment method to be used, replacing the many different impairment methods in NZ IAS 39. The new standard is required to be adopted for the new year ended 30 June 2014. The Trust Board has not yet assessed the effect of the new standard and expects it will not be early adopted.

Revenue Recognition Revenue is measured at the fair value of consideration received. Grants

Grants received from the Horowhenua District Council are the primary source of funding to the Trust and are restricted for the purposes of the Trust meeting it’s objectives as specified in the trust deed. The Trust also receives other government assistance for specific purposes, and these grants usually contain restrictions on their use. Council, government and non-government grants are recognised as revenue when they become receivable unless there is an obligation to return the funds if conditions of the grant are not met. If there is such an obligation the grants are initially recorded as grants received in advance, and recognised as revenue when conditions of the grant are satisfied.

Other Revenue

Where a physical asset is donated or vested in the Trust for nil or nominal consideration the fair value of the asset is recognised as revenue. Assets vested in the Trust are recognised as revenue when control over the asset is obtained. Interest income is recognised using the effective interest method.

Volunteer services received are not recognised as revenue or expenditure as the Trust is unable to reliably measure fair value of the services received.

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

35

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

Advertising Costs Advertising costs are expensed when the related service has been rendered. Borrowing Costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

Income Tax

The Trust is exempt from income tax. Leases

Operating Leases

An operating lease is a lease that does not transfer substantially all the risks and rewards incidental to ownership of an asset. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the lease term.

Lease incentives are recognised in the Statement of Comprehensive Income over the lease term as an integral part of the total lease expense. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at 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 as a current liability in the statement of financial position.

Debtors and Other Receivables

Trade and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Investments Investments in bank deposits are initially measured at fair value plus transaction costs.

After initial recognition investments in bank deposits are measure at amortised cost using the effective interest method. Gains and losses when the asset is impaired or derecognised are recognised in the Statement of Comprehensive Income.

At each balance sheet date the Trust assesses whether there is any objective evidence that an investments is impaired. Any impairment losses are recognised in the Statement of Comprehensive Income.

36

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

Property, Plant and Equipment

Property, plant and equipment are shown at cost with the exception to Library books, less accumulated depreciation and impairment losses.

Additions The cost of an item of property, plant and equipment is recognised as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably. In most instances, an item of property, plant and equipment is recognised at its cost. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value when control over the asset is obtained. Disposals Gains and losses on disposals are determined by comparing the proceeds with the car-rying amount of the asset. Gains and losses on disposals are included in the Statement of Comprehensive Income.

Subsequent costs Costs incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably.

Depreciation Depreciation is provided on a diminishing value basis on all property, plant and equipment at rates that will write off the cost of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:

Furniture and Fittings 8% to 60% diminishing value

IT Equipment 30% to 60% diminishing value

Books 10 years

Other Lending Stock 10% to 63.54% diminishing value

Kete Equipment 60% diminishing value

The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year-end. Library Books

At depreciated replacement cost in accordance with the guidelines released by the New Zealand Library Association and the National Library of NZ in May 2002. Library impair-ment assessments are performed by the Head Librarian and are not subject to an Independent review because there are no readily available market prices to determine fair value. The last impairment assessment was performed in June 2010.

37

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

Intangible Assets

Software acquisition Acquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs associated with maintaining computer software are recognised as an expense when incurred.

Costs associated with the development and maintenance of the Trust’s website are recognised as an expense when incurred.

Amortisation Computer software licenses are amortised at 30% diminishing value including Koha Software. Kete Software is amortised at 60% diminishing value as set by Inland Revenue Department. Amortisation begins when the asset is available for use and ceases at the date that the asset is disposed of. The amortisation charge for each period is recognised in the Statement of Comprehensive Income. The useful lives and associated depreciation rates of major classes of intangibles have been estimated as follows: Kete Software 4 years

Koha Software 8 years Impairment of Non-financial Assets

Assets with a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the trust would, if deprived of the asset, replace its remaining future economic benefits or service potential.

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

38

Employee Entitlements

Short-term benefits Employee benefits of $59,316 (2010: $61,082) that the Trust expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months.

The Trust has a wellness leave policy. No unused sick leave is carried forward at balance date.

Long-term beneifits

There is an accrual of $24,498 (2010: $22,808) for amount due in retirement grant. This accrues at the rate of 1 weeks salary per year of employment to a maximum of 26 weeks. Provisions The Trust recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as a finance cost. Borrowings

Borrowings are initially recognised at their fair value. After initial recognition, all borrowings are measured at amortised cost using the effective interest method.

Good and Service Tax (GST) All items in the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or expense.

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. The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows. Commitments and contingencies are disclosed exclusive of GST.

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

39

Critical accounting estimates and assumptions

In preparing these financial statements the Trust has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Property, plant and equipment useful lives and residual values At each balance date the Trust reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires the Trust to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by the Trust, and expected disposal proceeds from the future sale of the asset.

An incorrect estimate of the useful life or residual value will impact on the depreciable amount of an asset, therefore impacting on the depreciation expense recognised in the statement of financial performance, and carrying amount of the asset in the statement of financial position. The Trust minimises the risk of this estimation uncertainty by: - physical inspection of assets; - asset replacement programs; - review of second hand market prices for similar assets; and

- analysis of prior asset sales. The Trust has not made significant changes to past assumptions concerning useful lives and residual values.

The carrying amounts of property, plant and equipment are disclosed in note 8. Critical judgements in applying the Trust's accounting policies

The Trustees must exercise their judgement when recognising grant income to determine if conditions of the grant contract have been satisfied. This judgement will be based on the facts and circumstances that are evident for each grant contract.

(2) PERSONNEL COSTS 2011 2010

$ $

Salaries and wages 735,883 676,760

Employer contributions to defined contribution plan 9,856 9,130

Increase/(decrease) in employee benefit (4,962) 13,707

liabilities

Total personnel costs 740,777 699,597

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

40

(3) SCHEDULE OF INCOME

2011 2010

COUNCIL GRANTS & CONTRACTS $ $

District Council Annual Grant 1,073,000 966,165

1,073,000 966,165

LENDING CHARGES

Fines 16,829 14,743

Issues 37,624 42,022

54,453 56,765

OTHER OPERATING INCOME

Book Recoveries 1,971 2,590

Government Contracts 5,459 39,554

Photocopying 9,140 7,639

Sundry Income 14,024 33,980

Kete Horowhenua Income - 2,198

Internet 9,313 6,953

39,907 92,914

SPONSORSHIP & DONATIONS

Donations 54,453 35,366

54,453 35,366

INTEREST

Interest Received 8,027 10,209

8,027 10,209

OTHER INCOME

Donated Items 5,907 8,604

Insurance Claim 5,678 24,327

Holiday Programme 6,345 6,544

17,930 39,474

TOTAL INCOME $1,247,770 $1,200,894

(4) SCHEDULE OF EXPENDITURE

2011 2010

$ $

STAFF

Allowances - Staff 2,865 3,290

Accident Compensation 3,456 3,086

Employee Benefit Costs - Salaries 740,777 699,348

Staff Expenses 4,393 4,216

Superannuation Subsidy - 249

751,491 710,190

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

41

RESOURCES Loss On Disposal - 8,230 Subscriptions - - Books Cancelled 26,094 110,217 Non Books Cancelled (Gained) (3,105) (509) Periodical & Database Subscriptions 43,178 26,224 Amortisation 27,338 31,414 Depreciation 154,096 153,206

247,601 328,781

OPERATIONS Computer Support and Software 16,611 31,965 Photocopier 5,076 6,897 Repairs - book and video mending 12,535 22,628 Accounting 9,833 8,737 Audit 11,329 10,775 Bank Fees 244 240 General 311 294 Holiday Programme 4,885 6,352 Hospitality 949 1,268 Insurance - Trustees 1,500 1,500 Insurance - Statutory Liability 5,609 4,534 Interest - 1 Marketing Expenses 611 4,693 Printing & Stationery 7,725 25,285 Promotion Expenses - 6 Professional Subscriptions 7,561 3,838 Trustee Fees 15,000 15,000 Training 12,058 13,430

111,837 157,443

COMMUNICATIONS Internet 7,861 6,133 Telephone 2,845 2,568 Freight 1,218 5,696 Kete Horowhenua Expenses 3,000 3,000 Postage 1,963 2,017 Travel & Vehicle Expense 5,602 5,135

22,489 24,550

EQUIPMENT Telephone - Hire System 2,498 2,567 Hire of Equipment 1,079 4,525 Lease - Photocopier 6,694 6,723 Repairs & Maintenance 3,056 2,749

13,327 16,565

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

42

PREMISES

Levin

Gas & Power 16,493 14,558

Rates 771 460

Repairs & Maintenance 343 1,662

Rent 200 356

17,807 17,035

Shannon

Power 3,832 3,126

Rates 529 460

Repairs & Maintenance - 2,986

4,361 6,572

Foxton

Power 2,236 2,067

Rates 529 460

Repairs & Maintenance - 63

2,765 2,589

Cleaning & Rubbish 24,481 23,630

Insurance 5,223 6,310

Security Expenses 3,510 -

33,214 29,939

58,147 56,135

TOTAL EXPENSES $1,204,892 $1,293,663

(5) CASH AND CASH EQUIVALENTS

2011 2010

$ $

Cash at bank and on hand 82,655 117,997

Include short-term deposits maturing three 22,000

Total cash and cash equivalents 104,655 117,997

The carrying value of short-term deposits with maturity dates of three months or less

appoximates their fair value.

The credit quality of cash can be assessed by reference to Standard and Poor's credit

rating of AA for Westpac.

Cash and cash equivalents include short-term deposits totals $Nil (2010: $Nil).

A movement in interest rates of plus or minus 1% has an effect on interest income of

$Nil (2010: $Nil).

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

43

(6) DEBTORS AND OTHER RECEIVABLES 2011 2010

$ $ Debtors 6,780 2,116 Interest Receivable 383 433 Prepayments 2,497 8,958 GST Receivable 9,935 23,795

Total debtors and other receivables 19,595 35,301

Schedule of Aged Debtors

Current 1 - 30 days 6,780 2,026 30 - 60 days - 86 90+ days - 4

6,780 2,116

The carrying value of receivables approximates their fair value. As at balance date any overdue receivables have beeen assessed for impairment. Impairment is $Nil (2010: $Nil).

Debtors and other receivables mainly arise from the Trust's statutory functions, of debtors and other receivables with reference to internal or external credit ratings. (7) INVESTMENTS Investments are represented by short-term deposits which have maturities greater than three months from the date of acquisition. Maturity analysis and effective interest rates of investments

The maturity dates and weighted average effective interest rates for short-term 2011 2010

$ $ Short-term deposits with maturities of 4-6 months 205,307 78,754 Weighted average effective interest rate 3.57% 3.89% The carrying amounts of investments approximate their fair value.

The weighted average interest rate on investments as 30 June 2011 are 3.57%. If interest rates had fluctuated by plus or minus 0.5%, the effect would have been to

The credit quality of term deposits can be assessed by reference to Standard and

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

44

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

(8) PROPERTY, PLANT AND EQUIPMENT

Other

Kete Furniture IT Lending

Equipment & Fittings Equipment Books Stock TOTAL

Cost

Balance at 1 July 2009 16,428 118,936 260,203 1,317,285 112,034 1,824,886

Additions - 1,402 41,598 167,343 36,959 247,302

Disposals - - (153,748) (188,750) (21,856) (364,354)

Balance at 30 June 2010 16,428 120,338 148,053 1,295,878 127,137 1,707,834

Balance at 1 July 2010 16,428 120,338 148,053 1,295,878 127,137 1,707,834

Additions - 3,523 30,549 150,193 18,313 202,578

Disposals - - - (45,445) (14,954) (60,399)

Balance at 30 June 2011 16,428 123,861 178,602 1,400,626 130,496 1,850,013

Accumulated depreciation and impairment losses

Balance at 1 July 2009 13,834 81,411 212,812 547,807 101,399 957,263

Depreciation expense 1,539 4,049 33,284 82,662 31,674 153,208

Impairment losses - - - - - 0

Disposals - - (145,517) (78,533) (22,365) (246,415)

Balance at 30 June 2010 15,373 85,460 100,579 551,936 110,708 864,056

Balance at 1 July 2010 15,373 85,460 100,579 551,936 110,708 864,056

Depreciation expense 624 4,035 36,736 86,805 25,896 154,096

Impairment losses - - - - - 0

Disposals - - - (19,351) (18,059) (37,410)

Balance at 30 June 2011 15,997 89,495 137,315 619,390 118,545 980,742

Carrying amounts

At 1 July 2009 2,594 37,525 47,391 769,478 10,635 867,623

At 30 June and 1 July 2010 1,055 34,878 47,474 743,942 16,429 843,778

At 30 June 2011 431 34,366 41,287 781,236 11,951 869,271

45

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

(9) INTANGIBLE ASSETS 2011 2010

Koha Software $ $ Cost

Balance at beginning of year 148,591 103,562 Additions - 45,029 Disposals - -

Balance at year-end 148,591 148,591

Accumulated amortisation and impairment losses

Balance as at beginning of year 90,016 83,012 Amortisation expense 17,573 7,004 Impairment Losses - - Disposals - -

Balance at year-end 107,589 90,016

Kete Software $ $ Cost

Balance at beginning of year 199,270 199,270 Additions - - Disposals - -

Balance at year-end 199,270 199,270

Accumulated amortisation and impairment losses

Balance as at beginning of year 182,994 158,584 Amortisation expense 9,765 24,410 Impairment Losses - - Disposals - -

Balance at year-end 192,759 182,994

Carrying amounts

As at beginning of year 74,851 61,236 At year-end 47,513 74,851

(10) CREDITORS AND OTHER PAYABLES 2011 2010

$ $ Creditors 71,983 85,524

Total creditors and other payables 71,983 85,524

Creditors and other payables are non-interest bearing and are normally settled on 30-day terms, therefore the carrying value of trade and other payables approximates their fair value

46

(11) EMPLOYEE BENEFIT LIABILITES 2011 2010

$ $ Accrued salaries and wages 24,404 19,519 Annual leave 34,912 41,564 Retirement gratuities 24,498 22,808

Total employee benefit liabilities 83,814 83,891

Comprising:

Current 59,316 61,083 Non-current 24,498 22,808

Total employee benefit liabilities 83,814 83,891

(12) COMMUNITY CENTRE FUND 2011 2010

$ $ Opening Balance 98,007 - Grants 40,000 90,000 Other 26,044 8,007

Total Community Centre Fund 164,051 98,007

The Community Centre Fund is money received from fund raising, donations and grants.

The money is held in a separate account to be used for the development of the new library and the Community Centre. (13) RECONCILIATION OF EQUITY 2011 2010

Contributed capital $ $ Balance at 1 July 782,803 782,803

Balance at 30 June 782,803 782,803

Retained surpluses

Balance at 1 July 99,623 192,392 Surplus/(deficit) for the year 42,878 (92,769)

Balance at 30 June 142,501 99,623

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

47

(14) CAPITAL COMMITMENTS AND OPERATING LEASES The Trust has no capital expenditure commitments at balance date. (2010: Nil).

Lease Commitments 2011 Less Than 1 to 2 Years 3 to 5 Years

1 Year $ $ $

Leasing Solutions Limited expire 30 June 2015 7,254 21,762

7,254 21,762 -

Lease Commitments 2010 Less Than 1 to 2 Years 3 to 5 Years

1 Year $ $ $

One Source Finance expires 29 June 2011 6,723 - -

6,723 - -

(15) Contingent Assets

(16) The Trust has received the following pledges of funding which are contingent on the new library building going ahead: $200,000 from Eastern and Central (approved March 2009)

$110,000 from Contact Energy

$700,000 from Horowhenua District Council $50,000 from The Friends of the Library Trust $550,000 from the Lotteries Community Facilities

Contingent Liabilities

The Trust has received in total $25,000 from Endeavour Trust, $40,000 from Southern Trust and $65,000 from Horowhenua Community Trust which will need to be repaid if the new library building does not go ahead (2010: $90,000).

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

48

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

(16) RELATED PARTY INFORMATION

The Trust was settled by the Horowhenua District Council and receives a significant amount of operating grants from the Council to deliver its objectives as specified in the Trust deed. The Horowhenua District Council is the ulitimate controlling party of the Trust.

The following transactions were carried out with related parties during the year:

2011 2010

$ $

Annual Grant Received from Council 1,038,000 940,000

Services provided by Te Horowhenua Trust 14,690 20,833

to Horowhenua District Council

Accounts Receivable from Horowhenua District Council 6,530 1,040

Sponsorship from Horowhenua District Council - 12,553

Accountancy fees of $9,833 for the period were paid to Colbert Cooper Limited (2010: $8,737) of whom one of the trustees, PH Birrell is a consultant. The Trust makes purchas-es from the Levin Paper Plus which Bernie Wanden a trustee is the owner, purchases this year totalled $9,898 (2010: $7,437), payable as at 30 June 2011 $886 (2010: $942). No provision has been required, nor any expense recognised for impairment of receiva-bles from related parties (2010: nil).

Key management personnel compensation 2011 2010 $ $

Salaries and other short-term employee benefits 204,885 178,504

Post employee benefits 24,498 22,808

Total key management personnel compensation 229,383 201,312

Key management personnel include the Head of Libraries, the Operations Manager, the Programmes and Services Manager and the Trustees.

(17) TRUSTEE FEES 2011 2010

$ $

G Sue 2,500 2,500 P Birrell 2,500 2,500 S Crosbie 5,000 5,000 A Smith 2,500 2,500 B Wanden 2,500 2,500

15,000 15,000

(18) EVENTS AFTER BALANCE DATE

There were no significant events after balance sheet date.

49

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

(19) CATEGORIES OF FINANCIAL ASSETS AND LIABILITIES 2011 2010

$ $ Loans and receivables

Cash and cash equivalents (note 5) 104,655 117,997 Debtors and other receivables (note 6) 19,595 35,301 Investments (note 7) 205,307 78,754

Total loan and receivables 329,557 232,052

Financial liabilities measured at amortised cost

Creditors and other payables (note 10) 96,288 105,043

Total financial liabilities measured at amortised cost 96,288 105,043

(20) FINANICAL INSTRUMENT RISKS

The Trust has policies to manage the risks associated with financial instruments. The Trust is risk adverse and seeks to minimise exposure from its treasury activities. The Trust has established Borrowing and Investment policies. These policies do not allow any transactions that are speculative in nature to be entered into. Market risk The interest rates on the Trust’s investments are disclosed in note 7. Fair value interest rate risk Fair value interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates. The Trust’s exposure to fair value interest rate risk is limited to its borrowings and short-term bank deposits. Cash flow interest rate risk Cash flow interest rate risk is the risk that the cash flows from a financial instrument will fluctuate because of changes in market interest rates. Borrowings and invest-ments issued at variable interest rates expose the Trust to cash flow interest rate risk. The Trust’s investment policy requires a spread of investment maturity dates to limit exposure to short-term interest rate movements. The Trust currently has no variable interest rate debt or investments. Currency risk Currency risk is the risk that the value of a financial instrument will fluctuate due to changes in foreign exchange rates. The Trust is not exposed to currency risk, as it does not enter into foreign currency transactions.

50

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

Credit risk Credit risk is the risk that a third party will default on its obligation to the Trust, causing the Trust to incur a loss. Due to the timing of its cash inflows and outflows, the Trust invests surplus cash with registered banks. The Trust’s Investment policy limits the amount of credit exposure to any one institution. The Trust has processes in place to review the credit quality of customers prior to the granting of credit. The Trust’s maximum credit exposure for each class of financial instrument is represented by the total carrying amount of cash equivalents (note 5), investments (note 7) and trade receivables (note 6). There is no collateral held as security against these financial instru-ments, including those instruments that are overdue or impaired. The Trust has no significant concentrations of credit risk, as it has a large number of credit customers and only invests funds with registered banks with specified credit ratings. Liquidity risk Liquidity risk is the risk that the Trust will encounter difficulty raising liquid funds to meet commitments as they fall due. Prudent liquidity risk management implies maintaining suf-sufficient cash, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Trust aims to maintain flexibility in funding by keeping committed credit lines available. In meeting its liquidity requirements, the Trust maintains a target level of investments that must mature within specified timeframes. The Trust manages its borrowings in accordance with its Borrowing policy. The maturity profiles of the Trust’s interest bearing investments are disclosed in note 7.

CAPITAL MANAGEMENT

The Trust’s equity comprises of Trust capital and retained surpluses. Equity is represented by net assets. The Trust deed requires the Board of Trustees to manage its revenues, expenses, assets, liabilities, investments, and general financial dealings prudently. The Trust’s equity is largely managed as a by-product of managing revenues, expenses, assets, liabilities, investments, and general financial dealings. The objective of managing the Trust’s equity is to ensure the Trust effectively achieves its objectives and purpose, whilst remaining a going concern.

51

NOTES TO THE FINANCIAL STATEMENTS cont FOR THE YEAR ENDED 30 JUNE, 2011

KETE DEVELOPMENT Kete is a software programme designed to act as a do-it-yourself digital archive of arts, culture and heritage resources. It was developed because the Trust had conducted an Arts Culture and Heritage Audit for Horowhenua District Council which revealed the fra-gility of many of the district's arts culture and heritage records. The Kete Horowhenua development fitted the objectives of the the government's National Digital Strategy and received a grant from the Community Partnership Fund to implement it.

KOHA SOFTWARE

The Trust commissioned Katipo Communications Ltd in 1999 to write a library software programme that would meet the needs of the Horowhenua Library system without requiring an initial or continuing heavy investment in new equipment, or expensive tel-ecommunications links. The programme was written as Open Source software, under the GNU General Public Licence. As such, it is free to download and use by anyone. For this reason, the name "Koha" was selected for the programme.

(24) STATUTORY DEADLINE Section 67 of the Local Government Act 2002 requires delivery to the shareholders and available to the public within 3 months of the end of the financial year, a report on the organisations operations during that year. The Trust has complied with this require-ment.

(25) STATEMENT OF INTENT Schedule 8 Part 3(b) require that a Statement of Intent be delivered to it's shareholders by 30 June each year for the following year. The Statement of Intent for the year ended 30 June 2011 was delivered to the Council on 4 March 2011 and was adopted by the Council 6 May 2011.

(26) CHANGE OF NAME

The Trust changed its name from Horowhenua Library Trust to Te Horowhenua Trust on 4th March 2011.

52

Audit Opinion

Independent Auditor’s Report

To the readers of Te Horowhenua Trust’s

financial statements and statement of service performance for the year ended 30 June 2011

The Auditor‑General is the auditor of Te Horowhenua Trust (the Trust). The Auditor‑General

has appointed me, Phil Kennerley, using the staff and resources of Audit New Zealand, to

carry out the audit of the financial statements and statement of service performance of the

Trust on her behalf.

We have audited:

the financial statements of the Trust on pages 28 to 51 that comprise the statement of

financial position as at 30 June 2011, the statement of comprehensive income, statement

of changes in equity and statement of cash flows for the year ended on that date and the

notes to the financial statements that include accounting policies and other explanatory

information; and

the statement of service performance of the Trust on pages 24 to 25.

Opinion

In our opinion:

the financial statements of the Trust on pages 28 to 51:

comply with generally accepted accounting practice in New Zealand; and

fairly reflect the Trust’s:

financial position as at 30 June 2011; and

financial performance and cash flows for the year ended on that date;

and

the statement of service performance of the Trust on pages 24 to 25:

complies with generally accepted accounting practice in New Zealand; and

fairly reflects the Trust’s service performance achievements measured against the per-formance targets adopted for the year ended 30 June 2011.

Our audit was completed on 9 September 2011. This is the date at which our opinion is

expressed.

53

Audit Opinion cont.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the

Board and our responsibilities, and we explain our independence.

Basis of opinion

We carried out our audit in accordance with the Auditor‑General’s Auditing Standards, which

incorporate the International Standards on Auditing (New Zealand). Those standards require

that we comply with ethical requirements and plan and carry out our audit to obtain reasonable

assurance about whether the financial statements and statement of service performance are

free from material misstatement.

Material misstatements are differences or omissions of amounts and disclosures that would

affect a reader’s overall understanding of the financial statements and statement of service

performance. If we had found material misstatements that were not corrected, we would have

referred to them in our opinion.

An audit involves carrying out procedures to obtain audit evidence about the amounts and

disclosures in the financial statements and statement of service performance. The procedures

selected depend on our judgement, including our assessment of risks of material misstatement

of the financial statements and statement of service performance, whether due to fraud or

error. In making those risk assessments, we consider internal control relevant to the Trust’s

preparation of the financial statements and statement of service performance that fairly reflect

the matters to which they relate. We consider internal control in order to design audit

procedures that are appropriate in the circumstances but not for the purpose of expressing an

opinion on the effectiveness of the Trust’s internal control.

An audit also involves evaluating:

the appropriateness of accounting policies used and whether they have been consistently

applied;

the reasonableness of the significant accounting estimates and judgements made by the

Board;

the adequacy of all disclosures in the financial statements and statement of service

performance; and

the overall presentation of the financial statements and statement of service performance.

We did not examine every transaction, nor do we guarantee complete accuracy of the financial

statements and statement of service performance. We have obtained all the information and

explanations we have required and we believe we have obtained sufficient and appropriate

audit evidence to provide a basis for our audit opinion.

Responsibilities of the Board

The Board is responsible for preparing financial statements and a statement of service

performance that:

comply with generally accepted accounting practice in New Zealand;

fairly reflect the Trust’s financial position, financial performance and cash flows; and

fairly reflect its service performance achievements.

54

Audit Opinion cont.

The Board is also responsible for such internal control as it determines is necessary to enable the preparation of financial statements and a statement of service performance that are free from material misstatement, whether due to fraud or error.

The Board’s responsibilities arise from the Local Government Act 2002.

Responsibilities of the Auditor

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you based on our au-dit. Our responsibility arises from section 15 of the Public Audit Act 2001 and section 69 of the Local Government Act 2002.

Independence

When carrying out the audit we followed the independence requirements of the Audi-tor‑General, which incorporate the independence requirements of the New Zealand Insti-tute of Chartered Accountants.

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

Phil Kennerley Audit New Zealand On behalf of the Auditor‑General Palmerston North, New Zealand