2012 wintec annual report

WINTEC ANNUAL
REPORT 2012
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Significant transactions with government related entities
The government influences the roles of the Institute as well as being a major source of revenue.
The Institute has received funding and grants from the Tertiary Education Commission (TEC) totalling $46.931m
(2011 $46.714m) to provide education and research services for the year ending 31 December 2012.
The Institute also leases at a nil rental amount buildings legally owned by the Crown.
Collectively but not individually significant transactions with government related entities
In conducting their activities the Institute and Group are required to pay various taxes and levies (such as GST, PAYE, and
ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies is based on the standard
terms and conditions that apply to all tax and levy payers. The Institute is exempt from paying income tax and FBT.
The Institute purchases goods and services from entities related to the Crown and it also provides services to entities related to
the Crown. The purchase and provision of goods and services to government-related entities for the year ended 31 December 2012
are small when compared to the Institute’s total expenditure and revenue and have been conducted on an arm’s-length basis.
The purchase of goods and services included the purchase of electricity from Genesis, air travel from Air New Zealand and postal
services from New Zealand Post. The provision of services to government-related entities mainly related to the provision of
educational courses.
During the year, the Institute and Group purchased services from Hamilton City Council on which Council Chair, Gordon
Chesterman is a Councillor. Gordon Chesterman resigned as Council Chair on 30 April 2012. The figures included
relate to the entire year. These services cost $331,614 (2011 $183,814) and were supplied on normal commercial
terms. There is a balance owing to Hamilton City Council at 31 December 2012 of $200 (2011 $163). Wintec provided
services to Hamilton City Council of $5,708. Hamilton City Council owed Wintec $5,241 at 31 December 2012.
Wintec provided accommodation and other services to the value of $35,552 (2011 $43,415) to the Waikato Chamber of
Commerce in Wintec House. Services were also received in 2012 to the value of $16,284 (2011 $19,762). There is a balance
owing to the Institute at 31 December 2012 of $3,538 (2011 $95,641). Paul Holloway was a board member during 2011.
Maxine Moana-Tuwhangai is a member of the Waikato Tainui Parliament (Waikato Tainui Te Kauhanganui Inc.) who are the
100% shareholder of Tainui Group Holdings Limited. During the year Wintec paid rent of $1,395,611 to Tainui Group Holdings
Limted. Wintec also entered into a contract with Tainui Group Holdings limited to sell 4 hectares of land at Rotokauri.
FINANCIAL PERFORMANCE
During the year, the Institute sponsored Netball Waikato. Lynnette Flowers, wife of Chief Executive Mark Flowers, is the Chair
of Netball Waikato.
One Council member purchased an iPad at a subsidised rate.
Wintec had significant transactions with the University of Waikato during the year. These transations relate to the 2012 Certificate
in University Preparation course and total $835,177 (excl. GST).
The Community Living Trust purchased a house from Wintec at a cost of $52,094. Merran Davis is the Dean at Wintec and
Lynette Flowers is the wife of the CE: both are Officers of the Trust.
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