Summary of financial statements

Sea in Kaikōura

Summary of financial statements | Ngā Pūrongo Pūtea

We are pleased to report that Environment Canterbury performed well against the 2022/23 Annual Plan. The operating surplus of $4.6M exceeded expectations of the $1.8M budgeted operating surplus.

Our Total Comprehensive Revenue and Expense for the 2022/23 financial year was a deficit of $6.4M. The deficit is primarily due to the revaluation of Council's Emissions Trading Scheme units. The market valuation of these units declined by $11.0M in the current year. Market prices in June 2023 were at a two-year low amidst uncertainty surrounding central government policy to reform the Emissions Trading Scheme.

Operating revenue was $7.1M higher than budget, with the most significant contributor being additional central government funding received in relation to the operations of public transport.

Operating expenditure was $4.3M higher than budget as a result of the recognition of a financial provision related to Holidays Act 2003 remediation. This additional unbudgeted expenditure was partially offset by reduced spending in personnel costs due to the challenges presented by a difficult labour market.

 In 2022-23, we received $274M revenue and spent $269.4M of operating expenditure, for an operating surplus of $4.6M.
 
Statement of comprehensive revenue and expense
 
Statement of financial position
 
Statement of changes in net assets/equity
 
Cash flow statement

Summary of financial statements | Ngā Pūrongo Pūtea

   Actual 2022-23 $000 Annual Plan 2022-23 $000 Actual 2021-22

Revenue 

      
General rates 91,414 90,672 82,244
Targeted rates 60,315 59,555 48,976
Subsidies and grants 87,104 76,152 71,449
Fees and charges 29,926 34,368 31,496
Other revenue/gains 5,301 6,177 6,664
Total operating revenue 274,059 266,925 240,828

Expenditure

      
Personnel costs 77,589 77,282 62,143
Finance costs 2,247 1,728 1,464
Other expenses 189,602 186,090 179,850
Total operating expenditure 269,438 265,100 243,457
Surplus/(deficit) before tax 4,621 1,825 (2,629)
Other comprehensive revenue and expense (11,083)  - 286,514

Total comprehensive revenue and expense

(6,461)

1,825

283,884

Statement of financial position

   Actual 2022-23 $000 Annual Plan 2022-23 $000 Actual  2021-22
Current Assets 63,384 51,736 70,880
Total non current assets 1,424,896 1,234,548 1,428,500
Total assets 1,488,280 1,286,284 1,499,380
Total current liabilities 54,105 38,049 50,349
Non-current liabilities 57,264 85,728 65,659
Total liabilities 111,369 123,777 116,008
Net assets 1,376,911 1,162,507 1,383,372
Equity 1,376,911 1,162,507 1,383,372

Statement of changes in net assets/equity

   Actual 2022-23 $000 Annual Plan 2022-23 $000 Actual  2021-22
Balance as at 1 July 1,383,372 1,160,681 1,099,488
Total comprehensive revenue & expense (6,461) 1,825 283,884
Balance on 30 June 1,376,911 1,162,507 1,383,372

Cash flow statement

   Actual 2022-23 $000 Annual Plan 2022-23 $000 Actual  2021-22
Net cash flow from operating activities  4,569 9,289 3,004
Net cash flow from investing activities (15,569) (37,981) (193)
Net cash flow from financing activities (4,561) 11,958 15,980
Movement in cash - Net increase / (decrease) in cash held (15,561) (16,734) 18,791
Add cash bought forward 44,685 41,378 25,894
Cash carried forward 29,124 24,644 44,685

Explanation of major variances against budget

Operating revenue was $7.1M higher than budget, with the most significant contributor being additional central government funding received in relation to the operations of public transport.

Operating expenditure was $4.3M higher than budget as a result of the recognition of a financial provision related to Holidays Act 2003 remediation. This additional unbudgeted expenditure was partially offset by reduced spending in personnel costs due to the challenges presented by a difficult labour market.

Our Total Comprehensive Revenue and Expense for the 2022/23 financial year was a deficit of $6.4M. The deficit is primarily due to the revaluation of Council's Emissions Trading Scheme units. The market valuation of these units declined by $11.0M in the current year. Market prices in June 2023 were at a two-year low amidst uncertainty surrounding central government policy to reform the Emission Trading Scheme.

Disclaimer

  • The summary financial statements have been extracted from the full audited Annual Report dated 25 October 2023 (PDF file, 15.4 MB).
  • The summary financial statements cannot be expected to provide as complete an understanding as provided by the full financial report. Read a copy of the full Annual Report (PDF file, 15.4 MB).
  • The full financial statements have been prepared in accordance with NZ GAAP and the requirements of the Local Government Act 2002 and comply with Public Benefit Entity International Public Sector Accounting Standards (PBEIPSAS) and have been prepared in accordance with Tier 1 Public Benefit Entity accounting standards.
  • The summary financial statements comply with PBE FRS-43. All amounts are expressed in New Zealand Dollars and have been rounded to $000s.
  • The full Annual Report financial statements have been audited and an unmodified audit opinion was issued on the full financial statements on 25 October 2023. The summary financial statements were authorised for issue on 25 October 2023 by the Council.

Independent Auditor’s report

Prepared by:  Yvonne Yang, Audit New Zealand - On behalf of the Auditor General, Christchurch, New Zealand, 25 October 2023

Read the audit report

To the readers of Canterbury Regional Council’s summary of the annual report for the year ended 30 June 2023.

The summary of the annual report was derived from the annual report of the Canterbury Regional Council (the Regional Council) for the year ended 30 June 2023.

The summary of the annual report comprises the following summary statements on pages 12 to 23 and 28.

  • the summary statement of financial position as at 30 June 2023;
  • the summaries of the statement of comprehensive income, statement of changes in net assets/equity and statement of cash flows for the year ended 30 June 2023;
  • other explanatory information; and
  • the statement of service performance.

Opinion

In our opinion:

  • the summary of the annual report represents, fairly and consistently, the information regarding the major matters dealt with in the annual report; and
  • the summary statements comply with PBE FRS-43: Summary Financial Statements.

Summary of the annual report

The summary of the annual report does not contain all the disclosures required by generally accepted accounting practice in New Zealand. Reading the summary of the annual report and the auditor’s report thereon, therefore, is not a substitute for reading the full annual report and the auditor’s report thereon.

The summary of the annual report does not reflect the effects of events that occurred subsequent to the date of our auditor’s report on the full annual report.

The full annual report and our audit report thereon

We expressed an unmodified audit opinion on the information we audited in the full annual report for the year ended 30 June 2023 in our auditor’s report, dated 25 October 2023.

The Council’s responsibility for the summary of the annual report

The Council is responsible for preparing the summary of the annual report which includes preparing summary statements, in accordance with PBE FRS-43: Summary Financial Statements.

Auditor’s responsibility

Our responsibility is to express an opinion on whether the summary of the annual report represents, fairly and consistently, the information regarding the major matters dealt with in the full annual report and whether the summary statements comply with PBE FRS 43: Summary Financial Statements.

Our opinion on the summary of the annual report is based on our procedures, which were carried out in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board.

In addition to our audit of the audited information and we have reported on the annual reporting certificate to the Debenture trustee. This engagement is compatible with the independence requirements.

Other than in our capacity as auditor, we have no relationship with, or interests in, the Regional Council.

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