AnnuAl REPORT 10/11 - Grow Wellington

23. RELATED PARTIES
Grow Wellington Limited had the following transactions with entities related to Board members and senior management
PARENT
services purchased from Related parties 2011 2010
$ $
Related Party Board member Relationship description
Wellington Regional John Lumsden and Committee Purchase of membership
Chamber of Nigel Kirkpatrick Member & Board services - 1,240
Commerce
Member
3 Months.com John Lumsden Chair Hosting Creative HQ
website
India HorizonNZ Ltd Paul Swain Clean Tech Centre of
Excellence Research in
India
- 338
- 4,781
Creative HQ Limited Subsidiary Incubation Services 826,771 -
TOTAL SERVICES PURCHASED FROM RELATED PARTIES 826,771 6,359
Grow Wellington Limited is funded under its SOI to provide Incubation Services. Creative HQ Limited supplies those services.
services sold to Related Parties 2011 2010
$ $
Related Party Board member Relationship description
Foundation for Murray Bain CEO Sale of services to deliver
Research Science and
Technology
regional technology
partner services to regional
businesses.
- 192,411
Accident
Compensation
Corporation
Peter Robertson General Manager
Scheme
Performance, CFO
ACC Levies
14,848 -
Creative HQ Limited Subsidiary Management Fees for
Services Supplied
160,640 -
TOTAL SERVICES SOLD TO RELATED PARTIES 175,488 192,411
Grow Wellington Limited has a service level agreement with Creative HQ Limited to provide accounting, administration and other
business services. The costs of these services constitutes the management fee. The fee has been determined by costing the
services either directly where applicable or as a percentage of the Grow Wellington employee’s time based on their annual salary.
At year end an amount of $58,881 was owed to the Parent by the subsidiary through the intercompany balance. The intercompany
balance represents the net of payments and receipts between the Parent and the subsidiary during the financial year. No interest is
received on this balance and the balance owing is unsecured and repayable on demand.
All staff are employed by Grow Wellington Limited. Grow Wellington retains all liabilities relating to those staff members.
At year end an amount of $12,269 was payable to ACC in ACC levies by the Parent.
Other than the above, there are no amounts outstanding to or from the Parent.
With the exception of paying board fees, expenses for Board members, and expenses of senior management
there have been no other related party transaction with Board members, their organisation nor with staff.
With the exception of council contributions of $4,314,230 (2010: $4,006,989) there was no other related party
transactions between Grow Wellington Limited and their owner the Greater Wellington Regional Council.
As a matter of practice, where there is a real or perceived conflict of interest for any Board decision the Director
notes the conflict and withdraws from any involvement in the decision making.
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