AnnuAl REPORT 10/11 - Grow Wellington

26. EQUITY
The Parent has 100 uncalled shares in the Subsidiary. (2010: 100)
The Greater Wellington Regional Council has 100 uncalled shares in Grow Wellington Limited. (2010: 100)
27. SUMMARY COST OF SERVICES GROUP
2011 2011 2010
$ $ $
Revenue Actual Budget Actual
Council Contributions 4,314,230 4,250,000 4,006,989
Developing Centres of Excellence 77,868 319,000 293,099
Supporting Priority Sectors 322,185 260,000 232,640
Grow and Retain Business 1,301,781 864,000 923,593
Grow Broadband - - -
Raising the Value of our International Gateways - - -
Carbon Neutral Region - - -
Other Income 15,000 7,000 8,597
Major Variances from Budget
Council contributions variance of $64,230. Extra funding drawn down against SOI budget. However, savings in
previous years funding resulted in additional funds of $240,000 being available of which $175,770 is still available.
Developing Centres of Excellence variance of $241,132 less revenue than budget because a major project was
reviewed and it was decided not to carry it out.
6,031,064 5,700,000 5,464,918
Supporting Priority Sectors $62,185 variance. Additional support was provided for increased activity in Manufacturing programme.
Grow and Retain Business $437,781 more income from New Zealand Trade and Enterprise and Ministry of Science and
Innovation for delivering services on their behalf. This was not known at time of preparing our SOI.
Expenditure
Developing Centres of Excellence 528,493 960,000 968,900
Supporting Priority Sectors 2,077,135 1,940,000 2,002,011
Grow and Retain Business 3,415,436 2,800,000 2,287,792
Grow Broadband 10,000 - 82,486
Raising the Value of our International Gateways - - 41,243
Carbon Neutral Region - - 82,486
6,031,064 5,700,000 5,464,918
Major Variances from Budget
Variance $431,507 in Clean Technology because a major project did not eventuate.
Variance $137,135 in Supporting Priority Sectors because of increased activity in Manufacturing graduates programme.
Variance $615,436 in Grow and Retain Business because of increased activities to deliver Government services.
28. FUNDING DEED
The Parent operates under a Funding Deed with the Greater Wellington Regional Council, by which the Parent is reliant for the larger part of
its revenue. The company is managed as a public benefit entity, and the Council may adjust its funding to the Parent in any financial year if
it believes that the Company has failed to carry out its obligations and responsibilities under the Funding Deed or a default has occurred.
Continued existence of Grow Wellington is dependent on the Local Government Act 2002, Section 16 process as part of the Long
Term Plan. The extent to which Greater Wellington continues its regional economic development activity is dependent on the outcome
of its Long Term Plan process, and in particular the 2012/22 consultation it must undertake with territorial authorities under Section 16.
Because of these requirements Grow Wellington’s funding agreement with Greater Wellington does not extend beyond 30 June 2012.
Grow Wellington’s continued existence is therefore uncertain. However, as Greater Wellington has agreed in principle to continue the
function of the regional development activity, then the financial statements have been prepared on a going concern basis.
Based on budgets and intents for the year to 30 June 2012 and a year beyond, there is no intent to record a deficit.
It is management’s and the Directors’ intent to maintain a positive or neutral equity position for the life of the parent.
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