2011/12 Report - Canterbury Tennis

The major loss of income has continued to be felt primarily through the loss of the indoor tennis centre
court hire revenue. In previous years this asset has delivered revenue in the region of $200,000 p.a, which is,
not coincidentally, approximately the level of deficit experienced in the financial result. At the time of
writing this report, I hope to be in the final stages of securing access to the indoor centre, but court hire
revenue has not been included in the budget for the period as it is too unknown.
Our major revenue streams are: Affiliation Fees; modest Sponsorships; and Grants (a source of income that
cannot be guaranteed). All of these revenue streams have remained largely consistent with those of the
previous financial period, and of course we have not had the benefit of any tennis centre court hires. The
commercial lease revenue gained in previous years has also been lost due to the loss of these leased
premises (the Caterers Pavilion and Pro Shop) at Z Energy Wilding Park.
To assist in the understanding of the overall impact of 22 February 2011 earthquake on Tennis Canterbury
Region Incorporated and Wilding Park Foundation Incorporated, consolidated financial statements have
been prepared. These represent the combination of both Tennis Canterbury Region Incorporated and
Wilding Park Foundation Incorporated.
The overall position is a net loss of $39,231. The write down in value of property, plant and equipment has
had a significant impact on the result. Before depreciation and write down, the consolidated entity made
a cash surplus of $547,268. This included proceeds from the insurers and Earthquake Commission of
$792,590 and earthquake recovery project costs and earthquake-related repairs to rental properties of
$185,866.
TCRI and WPFI have prepared a business interruption claim for the indemnity period for the 12 months
following the 22 Feb 2011 earthquake. This claim is to compensate for the loss of revenue after adjustment
for the reduction in the cost of operational costs. The claim has yet to be assessed by the loss adjustor so in
accordance with the accounting standards any insurance proceeds received will be recognised in the
year in which it is received. The calculation of the claim entitlement is subject to agreement of the loss
adjustor so we are not in a position to determine the amount to be received as at balance date therefore
no amount has been recorded in the financial statements to 30 April 2012.
ASB Bank as Major Sponsor of Tennis Canterbury, has continued to provide us with tremendous financial
support by way of an “interest holiday” for much of the period, and supported us in other ways also. ASB
are a huge supporter of our game, understand well the challenges we currently face, and I cannot
adequately thank them enough for their support and assistance.
My sincere thanks go to Andrew Radburnd (Deputy Chairman) and Jane Glentworth (Treasurer) for their
expertise in the finance area. The earthquake has again made for a very complicated financial period,
and for the preparation of the Financial Statements which due to the current circumstances has
demanded even greater time of Andrew and Jane. They have also been preparing the insurance claim
for Business Interruption reported on above. Thank you Andrew and Jane for your expertise.
We will be presenting a Budget for the current financial period at this AGM, and it is fair to say that the
current year will also have significant financial challenges in terms of revenue and costs. We will continue
to deliver prudence with regards expenditure, and look for additional revenue opportunities.
In May, Administration & Finance Manager Louise Fleming left us for 12 months maternity leave, and we’re
all delighted by the safe arrival of Louise and Bevan’s wee boy Will. Jaimee Thomson has been welcomed
to our office team, and is doing an excellent job in the finance area of our business.
I would also like to thank Warren Johnstone and his BDO audit team for their expert Audit of our Financial
Statements.
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