ANTARCTICA NEW ZEALAND
2015 – 2016
Annual Report
Antarctica New Zealand is the crown entity responsible for developing, managing and executing New Zealand government activities in Antarctica and the Southern Ocean. We also manage Scott Base, New Zealand’s Antarctic research station which supports science in the Ross Sea region.
Statement of Purpose and Values Vision
Antarctica and the Southern Ocean: Valued, Protected, Understood.
Purpose
Inspiring people to connect with Antarctica, through knowledge and collaboration.
Values
People are the key to Antarctica New Zealand’s success. This includes permanent staff; fixed term and contract staff; seconded staff from the New Zealand Defence Force and our many strategic partners in Government, the science community and other national Antarctic programmes. We seek to create a high performance organisation underpinned by a culture of shared beliefs: • • • • •
We are passionate about what we do We care for each other and the environment We work together We act with integrity We aspire to the highest standards
Cover: Ice caves. Photo by Anthony Powell. © Antarctica New Zealand Pictorial Collection, 2015/16. Spaulding pond. Photo by Anthony Powell. © Antarctica New Zealand ISSN 1174-3948 (Print) ISSN 1177-9462 (Online)
Pictorial Collection, 2014/15.
ROSS SEA
ROSS ISLAND McMurdo Station
Scott Base ROSS ICE SHELF
ROSS ICE SHELF
Scott Base
Statement of Responsibility for the Annual Report
The Board of Antarctica New Zealand is pleased to present, in compliance with Section 151(3) of the Crown Entities Act 2004, the annual report for Antarctica New Zealand for the year ended 30 June 2016.
Brian Roche
Chairman 23 September 2016
Tony O’Brien
Board Member 23 September 2016
Cape Royds. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
2 Antarctica New Zealand
Contents Chairman’s Report
4
Chief Executive’s Report
5
Our Year in Review Our Commitment to: The Environment Outreach Science Science Highlights
6-9 10 12 13 14-15
New Zealand Antarctic Research Institute (NZARI)
16
Antarctic Heritage Trust
17
Being a Good Employer
18-19
Antarctica New Zealand’s Team
20
Statement of Responsibility
21
Audit Report
22
Statement of Service Performance 23-31 Financial Statements Directory
32-50 52
Annual Report 2015-2016 3
Chairman’s Report Over the past 12 months, New Zealand’s strategic interests in
conditions, however the United States Air Force successfully
Antarctica have been reviewed in Parliament, the Ministry of
carried cargo to Scott Base and McMurdo Station. The operational
Foreign Affairs and Trade and with our science partners in order
significance of winter flights cannot be underestimated.
to refresh and reinvigorate our ability to deliver New Zealand’s science priorities. The Ministry of Defence reaffirmed the
On behalf of the Board, I want to recognise Chief Executive Peter
importance of protecting our Southern Ocean in the Defence
Beggs and the Antarctica New Zealand team for their passion
White Paper 2016 pledging considerable support to Antarctic
and overall performance delivering a highly ambitious research
operations.
season. Of note is Peter’s leadership driving the organisation’s commitment and attitude towards health and safety excellence,
These reviews and strategic papers have directly contributed to
his unwavering passion for environmental stewardship and long
an additional $16.7 million through Budget 2016, part of a major
term sustainability of our operations.
Government investment in scientific excellence. Spread over four years, this additional funding will directly benefit the operational,
I wish to recognise the invaluable contribution of Sir Rob Fenwick
environmental and scientific work undertaken at Scott Base.
who stepped down as Chairman in December 2015. I am grateful for the clarity and passion Rob brought to the organisation
The importance of this funding cannot be underestimated.
for nearly a decade. I would also like to thank Tenby Powell
Scientific challenges require researchers to work collaboratively
and Dr. Caroline Burns for their professionalism during their
on larger multidisciplinary science programmes to achieve their
directorship, and welcome our newly appointed Directors Dr.
scientific objectives. These projects are often in remote areas of
Helen Anderson, Sharon Hunter and Rob Morrison.
Antarctica and require increased levels of logistical support from Antarctica New Zealand. Budget 2016 ensures our continued contribution towards cutting edge Antarctic science, and international partnerships. Our collaborations with other national Antarctic programmes remain strong. The commencement of winter flights by the
Brian Roche
National Science Foundation were met with challenging weather
Chairman
Some of the Antarctica New Zealand team in Christchurch. Photo by Neil Macbeth. © Antarctica New Zealand Pictorial Collection, 2016.
4 Antarctica New Zealand
During the 2015/16 Antarctic research season more than 320 people
asset management platform, ADAM, to continue to grow its public
travelled south to Scott Base to support New Zealand’s strategic
records collection.
objectives in Antarctica. This included three deep field campaigns spreading 1000kms across the Ross Ice Shelf to Siple Dome, and
Official visits to Scott Base included New Zealand Chief of Defence
750kms north to Cape Adare. More than 3000 science hours were
Force Lt Gen Tim Keating, Finance Minister Bill English and Energy
invested by an increasingly ambitious science community.
and Resources Minister Simon Bridges who participated in the official opening of the second phase of the Hillary Field Centre upgrade.
We celebrated the strength of our partnerships with other national Antarctic programmes through our operational and scientific
With support from the Prime Minister’s Chief Scientific Advisor Peter
endeavours on the continent, including policy and science forums
Gluckman, Antarctica New Zealand developed the opening video
such as the Scientific Committee for Antarctic Research (SCAR),
presented at the World Science Forum in Budapest showcasing
Council of Managers of National Antarctic Programme (COMNAP),
how international climate researchers collaborate when united by
the Antarctic Treaty Consultative Meeting, the Committee for
a common goal.
Environmental Protection, and indirectly through the Conference of Parties (COP) 21 climate summit held in Paris. New Zealand
Our team continue to strive to be at the top of their game. It
hosted Antarctic delegations from South Africa, China, Korea
has been a challenging but successful year, where we have
and Australia, and supported COMNAP Chairman Prof. Kazuyuki
demonstrated a high level of resilience to deliver a programme
Shiraishi to travel to Scott Base in December 2015.
of science and construction works which New Zealand can be very proud of. I would like to make special mention of Logistics
Antarctica New Zealand’s commitment to the environment was
Manager Paul ‘Woody’ Woodgate’s outstanding 35 years of
showcased through the EECA Engerywise Awards, namely as
ongoing service to the New Zealand Antarctic programme.
winners of the Trustpower Renewable Energy category for our Ross Island wind turbines. We also received certification to the
Together we achieved an ambitious season which looks set to be
world’s first Energy-Mark standard.
the new normality.
The US-based Tinker Foundation awarded the Environments Portal US$190,000 to maintain its operations in Christchurch, and the Lotteries Commission awarded $136,000 to support our digital
Peter Beggs Chief Executive
Annual Report 2015-2016 5
Chairman’s Report / Chief Executive’s Report
Chief Executive’s Report
Our Year in Review July 2015 Commitment to health and safety elevated Reaffirming our commitment to zero harm and continual improvement, a new Health and Safety Manager role was established. This role demonstrates our commitment to enhance Antarctica New Zealand’s leadership role in health and safety and will support us to benchmark our systems against an international standard. Antarctica New Zealand Digital Asset Manager (ADAM) awarded $136,000 In recognition of the significant public pictorial record which was digitised in 2014, ADAM was awarded a Lotteries Commission grant to further digitise the agencies LINZ records and science journals for public use. This expands the collection to more than Cape Adare -Borchgrevink Hut. Photo by Tracey Bean. © Antarctica New Zealand Pictorial Collection, 2015/16.
70,000 online items.
August 2015 Antarctic Environments Portal launched Environments.aq was developed by Antarctica New Zealand and Landcare Research to bridge the gap between Antarctic science and policy. The Portal was launched at the Antarctic Treaty Consultative meeting in Bulgaria, where the parties welcomed the Portal as a mechanism to provide reports on priority issues which can be drawn on to support effective management and governance of the region. Tinker Foundation grant The US-based Tinker Foundation awarded the Antarctic Environments Portal US$190,000 to maintain its operation for the next three years, including costs for an Editor, editorial group meetings, translation costs and hosting of the website. The Portal Governor General Lt Gen The Rt Hon Sir Jerry Mateparae and Lady Janine visited Antarctica New Zealand. Photo by Jeanine Foster. © Antarctica New Zealand Pictorial Collection, 2015/16.
is now hosted by Gateway Antarctica in Christchurch.
September 2015 Partnership with Air New Zealand extended As part of Air New Zealand’s commitment to sustainability, their partnership confirms a further significant investment over the next three years to support New Zealand Antarctic research initiatives through New Zealand Antarctic Research Institute (NZARI) research programmes along the Ross Sea coastline. Season Opening celebrations a success A weekend of Antarctic related festivities including the South to Antarctica Church Service, Wreath Laying and Season Opening Civic Reception held at the Tannery in Christchurch. Chairman Sir Rob Fenwick delivered a powerful speech, announcing his retirement from the Board of Antarctica New Zealand.
Antarctic Season Opening Civic Reception at The Tannery, Christchurch. Photo by Neil Macbeth. © Antarctica New Zealand Pictorial Collection, 2015/16.
6 Antarctica New Zealand
Our Year in Review
Women in Science accolade recognises Otago researcher The inaugural $25,000 L’Oréal-UNESCO For Women in Science New Zealand Fellowship was awarded to Dr. Christina Riesselman in recognition of her contribution to understanding Antarctica’s ice sheets and oceans potential to change from future warming.
October 2015 South African delegation visit to review gateway city opportunities A delegation from South Africa visited Christchurch to learn about our gateway city model as part of an economic assessment of their own gateway city potential forming part of a national Antarctic strategy. This symbolised the collaborative approach to work more closely together.
Hillary Field Centre, Photo by Simon Shelton. © Antarctica New Zealand Pictorial Collection, 2015/16.
Hillary Field Centre upgrades heralded by science community Stage One of the Hillary Field Centre (HFC) refurbishment and laboratory construction project was successfully completed ahead of the 2015/16 season. An overwhelming positive response was received from the science community regarding the usefulness and fit out of the new facilities. Governor-General visits Christchurch offices Lt Gen The Rt Hon Sir Jerry Mateparae and Lady Janine Mateparae’s visit provided an unique opportunity to showcase New Zealand’s efforts in Antarctica and the Southern Ocean, while meeting some of New Zealand’s top climate change researchers.
November 2015 National Geographic begin filming at Scott Base
Joshua Adams, Communications Operator, New Zealand Defence Force and National Geographic filming outside Scott Base. Photo by Anthony Powell. © Antarctica New Zealand Pictorial Collection, 2015/16.
As part of a three-year partnership, National Geographic began capturing footage of our people and science on ice to support a six-part TV series focussed on ‘what it takes to deliver world-class science’. This will premiere in November 2016, with potential to reach 440 million people around the world. Science and heritage supported at Cape Adare Two expeditions to Cape Adare, at the northern extent of the continent; 750kms away from Scott Base, were successfully supported. The Cape Adare project includes a science and environmental site assessment and the recovery of Antarctic Heritage Trust artefacts from Borschgrevink’s Hut.
Cabinet Ministers Hon Bill English and Hon Simon Bridges in Antarctica. Photo by Peter Beggs. © Antarctica New Zealand Pictorial Collection, 2015/16.
Annual Report 2015-2016 7
December 2015 World’s first Energy-Mark Certification achieved Antarctica New Zealand was recognised as the first organisation in the world to receive an Energy-Mark certification after ungoing an audit. This complements our suite of environmental certifications and is testament to our Environmental Management System. Antarctica New Zealand welcomes new Board members Dr. Helen Anderson, Sharon Hunter and Rob Morrison joined our Board of Directors. They offer a wealth of experience and strategic wisdom to our work in Antarctica and the Southern Ocean. We farewelled Directors Sir Rob Fenwick (Chairman), Tenby Powell and Prof. Caroline Burns who each made significant contributions to the strategic direction of New Zealand’s role in Antarctica over the past several years. Enviro-Mark Solutions celebration, (L-R): Brian Roche, Hon Murray McCully, Prof. Ann Smith, Hon Simon Bridges, Peter Beggs. © Antarctica New Zealand Pictorial Collection, 2015/16.
Celebrating Antarctica Day with kids across New Zealand Antarctica Day was celebrated throughout a nationwide competition for school classrooms to send a one-minute video of why Antarctica is important to them. More than 50 schools submitted videos, with the overall prize won by Lincoln Primary School, Canterbury.
January 2016 Polar research vessels visit Lyttelton Port British Naval vessel HMS Protector visited Christchurch during its voyage south to the Ross Sea. The visit celebrated how New Zealand and the United Kingdom work together to uphold the conservation rules of the Antarctic Treaty System, and protection of the Southern Ocean from illegal fishing activities. Senior Government officials visit Scott Base Lincoln Primary School Antarctica Day Competition winners. © Antarctica New Zealand Pictorial Collection, 2014/15.
Cabinet Minsters Hon Bill English, Hon Simon Bridges and Hon Nicky Wagner were able to visit Antarctica and see first-hand the Government’s investment in Antarctic research. Chief of Defence Force Lt Gen Tim Keating saw the New Zealand Defence Force in action during the ship offload period.
February 2016 Antarctic Office established The Antarctic Office will act as a liaison between the city’s Antarctic community in science, tourism, environmentalism, logistics and economic development. The Office will devise a strategy to bring together all strands of Antarctic programmes to ensure the most is made of every opportunity to build Christchurch’s gateway city profile. Antarctic research vessels visit Christchurch It is rare to see not one, but two Antarctic ice strengthened ships arrive in Lyttelton Port at the same time the Italica (Italy) and the Italica and Araon at Lyttelton Port. Photo by Sue McFarlane. © Antarctica New Zealand Pictorial Collection, 2015/16.
8 Antarctica New Zealand
Araon (Korean). This demonstrates the growing commitment to Christchurch as a gateway city to Antarctica.
Our Year in Review
March 2016 Briefing to members of Parliament Maintaining New Zealand’s position of influence in Antarctica is increasingly significant. Antarctica New Zealand and NZARI held a briefing on ‘Our Place in Antarctica’ for members of Parliament to learn more about the important role our countries decision makers will have tackling these challenges into the future, and securing our place within the Antarctic Treaty System.
April 2016 Prime Minister visits Christchurch office Prime Minister John Key’s visit to Antarctica New Zealand in Christchurch included a brief on New Zealand’s ambitious long term research needs, and the challenge of delivering logistically complex science programmes in one of the most remote locations
Prime Minister John Key visited Antarctica New Zealand. © Antarctica New Zealand Pictorial Collection, 2015/16.
on Earth. Joint outreach partnership awarded MBIE grant Far From Frozen, an outreach collaboration between Antarctica New Zealand, Otago Museum and University of Otago, will use digital full dome technology and other interactive tools to ignite scientific curiosity in youth and families through the science of climate change and the story of Antarctic exploration.
May 2016 Winner of EECA renewable energy award Antarctica New Zealand won the Trustpower Renewable Energy Award which recognises a project or technology designed to increase the production or use of renewable energy. Supporting clean energy use for New Zealand and United States Antarctic bases, the Ross Island Wind Energy Farm is an exemplar of innovation in energy efficiency. $16.7 million additional funds announced in Budget 2016
EECA awards (L-R): Ceisha Poirot, Johno Leitch, Simon Trotter, Peter Beggs. © Antarctica New Zealand Pictorial Collection, 2015/16.
Spread over four years, this additional funding will directly support New Zealand’s increasing Antarctic science ambition and benefit the operation of Scott Base. These funds are part of an all-of-government investment across science.
June 2016 Success at international treaty meetings The Antarctic Treaty Consultative Meeting (ATCM) adopted the Santiago Declaration on the 25th anniversary of the signing of the Protocol on Environmental Protection to the Antarctic Treaty. We led and supported work to improve environmental management including linking science and policy, area protection and management, climate change response and environmental impact assessment. Antarctic Treaty meeting 2016. © Antarctica New Zealand Pictorial Collection, 2015/16.
Annual Report 2015-2016 9
Our Commitment to the Environment Antarctica New Zealand is committed to the comprehensive
Celebrating Success
protection
Environmental
Antarctica New Zealand continues to place an emphasis on the
protection is fundamental to the planning and conduct of our
of
the
Antarctic
environment.
external review of our environmental performance. Two auditors
activities in Antarctica.
were taken to Scott Base in the 2015/16 season to review our
Environmental Protection
Environmental Management System (EMS) and our Energy Management System.
Antarctica New Zealand supports the Ministry of Foreign Affairs and Trade (MFAT) in implementing the Antarctic (Environmental
Our EMS retained Enviro-Mark Diamond Certification, a
Protection) Act (1994). One of the ways we provide this support is
certification
by ensuring high quality environmental impact assessments are
14001:2004. We also received Energy-Mark certification; the
conducted, and by monitoring compliance with approvals issued
first organisation in New Zealand to do so, and the first step in
by the Minister.
developing and implementing an Energy Management System.
aligned
to
the
international
standard,
ISO
In celebration of this achievement, a Parliamentary event was For the 2015/16 season, there were 26 Preliminary Environmental
hosted by Enviro-Mark Solutions and the certification was
Evaluations prepared on behalf of the science community and
presented by Energy and Resources Minister Simon Bridges.
four Initial Environmental Evaluations prepared by Antarctica New Zealand, including: ■■
■■
■■
2015-2019, Management and execution of the New Zealand Antarctic Programme 2015-2017, Stage Two Hillary Field Centre Reconfiguration Project 2015-2017, Establishment and operation of a field research camp at Cape Adare, Northern Victoria Land
Antarctica New Zealand received top honours for its work at the EECA Energywise Award evening winning the Trustpower Renewable Energy category. Antarctica New Zealand, in partnership with Meridian Energy, commissioned the Ross Island Wind Farm, consisting of three 333 kilowatt turbines erected on Crater Hill above Scott Base. It is the southern-most wind farm in the world and has significantly reduced the amount of diesel required to power the research station and lessened the risks
2015-2017, Conserving Hillary’s Hut, Scott Base, Antarctica
associated with transporting and storing fuel in this fragile region.
We are pleased to announce there were no major environmental
We continue to be committed to managing and reducing
compliance issues noted for any activity in Antarctica in the
our carbon emissions, maintaining our Carbon Emissions
2015/16 season.
Measurement and Reduction Scheme (CEMARS) certification.
■■
Turbines time lapse. Photo by Anthony Powell. © Antarctica New Zealand Pictorial Collection, 2014/15.
10 Antarctica New Zealand
Enormous expanse of white land. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
Our Commitment to Outreach To our friends at NZARI and Antarctica New Zealand, I wanted to
National Geographic’s marketing and communications teams are
share a status update regarding our TV series with you all.
currently developing strategies to support this important series, and will work closely with the Studio’s production team, NZARI
This fall, National Geographic, along with NZARI and Antarctica
and Antarctica New Zealand to help amplify the message of the
New Zealand, will globally launch their unprecedented, cross
series and promote tune-in. In addition, National Geographic
platform inside-access docu-series spotlighting the men and
is developing the content strategy across multiple platforms,
women working the frontiers of science at New Zealand’s Scott
digitally and socially.
Base, Antarctica. And these are no ordinary scientists. These are some of the smartest people on the planet sharing the ultimate
Our filming at Scott Base during the 2015/16 season was incredibly
adventure in the name of science. The docu-series will focus on
productive, and a great start to our National Geographic /
the herculean effort of scientists conducting world-changing
Antarctica New Zealand – NZARI partnership. Our seasoned
research on the continent, the teams supporting them, and also
film crew captured some of the most breathtaking images ever
Antarctica itself; a unique location that is virtually unexplored in
on ice, and fantastic personal stories. This is thanks to a team
the television landscape. We will highlight the vast, picturesque
of many, including Gary Wilson, Peter Beggs, Jeanine Foster and
beauty, ethereal otherworldliness and punishing conditions of
Krystie Hedley, as well as senior leadership and countless others
the frozen continent.
working with us day in and day out on the ice. We cannot thank you all enough, and look forward to expanding that partnership
Viewers will have exclusive access to how these scientists and the
in the 2016/17 season.
teams supporting them play a vital role in many urgent fields of science from climate change, active volcanoes, micro-organisms
Looking forward to talking more in the months to come.
in the Dry Valleys and the search for, and tagging of marine mega fauna that calls this ice home. Each bit of information gathered can help us understand how the world is changing and how these changes impact the planet. Our ultimate goal is to teach, and also
Brian Lovett
inspire people to enact change.
VP of Production & Development National Geographic Studios
Ben Zupo and Drew Painter of National Geographic. © JJ Kelley, 2015/16.
12 Antarctica New Zealand
The New Zealand Antarctic science programme is undergoing significant change and growth. The programme is focussed on answering the most pressing questions about the vulnerability of ice and biota in Antarctica and connections between Antarctica
“We’re not going to solve
and the rest of the world. In order to best answer these questions,
these questions by business as usual
research needs to be conducted in places where change will be
- that’s why we’re supporting our
most apparent: where the ice meets the land such as the Siple Coast, and where the ocean meets the continent such as Cape Adare in the northern Ross Sea. In the 2015/16 season, we provided logistical support to three major deep field projects between 300 and 1000kms from Scott Base that required fixedwing, helicopter and traverse support from Scott Base.
scientists to go further and conduct more complex fieldwork than ever before,” Prof. Gary Wilson
We are investing in new infrastructure to support the changing needs of the science community. The Hillary Field Centre at Scott Base is undergoing a major upgrade, including the development of dedicated science laboratories and a modular system whereby
Science has had strong representation at meetings relating
shipping containers modified into specialist laboratories can be
to the Antarctic Treaty and the Committee for Environmental
‘docked’ into the Hillary Field Centre. We are developing traverse
Protection. In May, Prof. Gary Wilson (Chief Scientifc Advisor),
capability to provide a more efficient and cost-effective means
Jana Newman (General Manager of Policy, Environment and
of transporting field camp, science and fuel supplies over-ice
Safety) and Dr. Neil Gilbert (Environment and Policy Consultant
to remote locations. The tractor-sled system will be capable of
to Antarctica New Zealand) represented New Zealand at the
travelling up to 100kms per day and will come online for the
Antarctic Treaty Consultative Meeting and Committee for
2018/19 season.
Environmental Protection meetings in Santiago, Chile.
Siple Coast – Sam Taylor Offord. Photo by Becky Goodsell. © Antarctica New Zealand Pictorial Collection, 2015/16.
Annual Report 2015-2016 13
Our Commitment to Outreach / Our Commitment to Science
Our Commitment to Science
Science Highlights The Future of the Antarctic Ice Sheet
an unparalleled opportunity to measure the changing impacts on
A key focus of the science programme is melting ice, specifically,
Antarctica from the ocean and climate systems to the north. Work
determining how fast the Antarctic ice sheet will melt and the
will continue in the coming year, focussed on retrieval of scientific
sea level implications this will have for the rest of the planet.
monitoring equipment and downloading of weather stations.
New Zealand researchers have produced seminal publications over the last year that provide a sobering forecast of the future, should CO2 emissions remain unchecked.
The Ross Ice Shelf Surprisingly little is known about the Ross Ice Shelf despite
In the 2015 Nature paper titled “The multi-millennial Antarctic
it being the largest ice shelf on the continent. An improved
commitment to future sea-level rise” Dr. Nick Golledge and
understanding of ice shelf dynamics and likely response to a
colleagues present future scenarios of ice loss and sea level rise
warming climate is critical to forecasting the future of the planet.
under a range of CO2 and temperature scenarios. They describe
The Ross Ice Shelf is a floating extension of the Antarctic ice
how warming of only 1.5 to 2 degrees Celsius will trigger a
sheet, and a large programme of work initiated in 2014 is seeking
collapse of the Antarctic ice sheet that will be unstoppable, even
to understand its many complexities.
if in the future warming is slowed down or stabilises. This paper brings context and urgency to decisions around acceptable levels
Dr. Wolfgang Rack, University of Canterbury and colleagues
of warming such as those discussed under the Paris Agreement.
have been investigating the influence of the tide in causing the ice sheet to flex and bend. His team have developed improved
The last time the planet experienced global temperatures and
technology for measuring the position of the grounding zone –
atmospheric CO2 concentrations similar to those projected
the transition between the grounded ice sheet and the floating
for coming centuries was during the early to mid-Miocene
ice shelf - and discovered that this area is highly dynamic due to
(23–14 million years ago). A recent paper in Proceedings of the
the influence of tides.
National Academy of Science by Dr. Richard Levy and colleagues presents findings from the ANDRILL project, where sediment
An NZARI-funded programme led by Dr. Christina Hulbe
deposited at this time period was analysed. The paper, “Antarctic
(University of Otago) is proposing to drill through the ice shelf
ice sheet sensitivity to atmospheric CO2 variations in the early
and into the sediment below, in order to determine how stable
to mid-Miocene” describes high variability of the extent of the
the Ross Ice Shelf has been over geological time. This programme
Antarctic ice sheet during this period, and intervals where it
involves a number of international collaborators and involves
was only a fraction of its current size. These new drill core data
significant development of technology to enable the drilling to
and associated ice sheet modelling experiments indicate that
be successful. The field programme began in 2015/16 with the
polar climate and the Antarctic ice sheet were highly sensitive
identification of suitable sites for future drilling, some 300kms
to relatively small changes in atmospheric CO2 during early-mid-
South of Scott Base.
Miocene. A research team led by Dr. Huw Horgan (Victoria University of
Biological Links to Climate
Wellington) travelled to the Siple Coast, 1000kms from Scott Base, to examine the transition between the Kamb Ice Stream and the
Cape Adare, the northernmost land in the Ross Sea region, is
Ross Ice Shelf. This team is particularly interested in the role that
expected to be one of first places to feel and respond to the effects
sediment build up at the grounding zone and subglacial water flow
of a changing environment. NZARI, in collaboration with the
plays in ice sheet stability. A range of seismic, radar and global
Korean Polar Research Institute (KOPRI), has been investigating
positioning system (GPS) surveys were conducted to understand
the feasibility of conducting a long term ecological research and
processes on the underside of this thick extent of ice.
monitoring programme at this site. The first stage of the Cape Adare Pilot Study was completed early in the 2015/16 season. The team, led by Prof. Gary Wilson (NZARI), tested the feasibility
Sea Ice
and potential environmental impact of establishing a field camp
Despite rising global temperatures and clearly declining sea ice in
at the site, which is home to one of the largest Adélie penguin
the Arctic, Antarctic sea ice coverage is increasing. New Zealand
colonies on the continent. Despite extreme weather conditions,
research is focussed on determining what factors influence
the team collected marine environmental data, samples and
the behaviour of sea ice around the continent. Improved
underwater photos, serviced the weather station, conducted
understanding of these factors can inform climate models so
surveys on land and water and surveyed the penguin colony.
that they will be better able to accurately predict sea ice thickness
Early indications are that Cape Adare and nearby Robertson Bay
and extent.
have strong connections to the Southern Ocean and will provide
14 Antarctica New Zealand
theory that supercooled water, formed by melting of ice shelves, is causing growth in sea ice extent. They are also interested in how the meltwater influences the way that the sea ice is formed and the role that ice crystals suspended in the water column
“Our research is very much focussed on
contribute to sea ice on the surface. In the 2015/16 season the
generating understanding to support
team used a range of sea ice cores, temperature and salinity
policy and management approaches
probes and acoustic measurements to achieve their goals.
across the spectrum of climate change
Dr. Adrian McDonald, University of Canterbury, and his team
and conservation”
investigated the influence of dominant weather patterns on sea
Prof. Gary Wilson
ice distribution and growth. Using ground measurements and satellite technology, it was found that sea ice in the Ross Sea is heavily influenced by the strength and persistence of westerly winds.
migrate to New Zealand waters. It was also discovered that
Ross Sea Ecosystem Monitoring
Antarctic toothfish have not disappeared from McMurdo Sound as previously thought, and they form part of the diet of Weddell
The Ross Sea is considered one of the last intact marine
Seals. Dr. Steven Parker (NIWA) contributed to a stock assessment
ecosystems on the planet, although there are increasing
of Antarctic toothfish, which is yielding valuable information
demands from fisheries and tourism. Research led by Dr. Regina
regarding abundance, diet, growth and maturity rates, enabling
Eisert, University of Canterbury has focussed on how this
the sustainability of the fishery to be determined and carefully
polar marine ecosystem works, and more specifically what the
managed.
effects of fishing and climate change may be. The programme has focussed on large predators including penguins, toothfish,
The findings of this work have direct links to policy. A number
seals and whales in the Ross Sea, of which large parts have been
of reports have been presented to the International Whaling
earmarked for a marine reserve.
Commission (IWC) and to the Convention for the Conservation of Antarctic Marine Living Resources (CCAMLR), in addition to a
The 2015/16 season involved identification of individual killer
number of publications in scientific journals.
whales, which revealed that Type C (Ross Sea) killer whales
Dr. Regina Eisert, Weddell seals and killer whale. Photo by Anthony Powell. © Antarctica New Zealand Pictorial Collection, 2015/16.
Annual Report 2015-2016 15
Science Highlights
Research led by Dr. Craig Stevens (NIWA) is investigating the
New Zealand Antarctic Research Institute New Zealand Antarctic Research Institute (NZARI) is a charitable
■■
New Zealand Antarctic Research Institute Masters
trust that partners with Antarctica New Zealand and research
Scholarship: Rebecca Parker, University of Otago, MSc -
agencies to develop a global understanding of Antarctica’s
“Sea ice and diatom primary production in the Ross Sea,
impacts and vulnerability in a changing global climate.
Antarctica: the response to post-glacial warming”
The 2015/16 season was a busy time for NZARI with six new Type
■■
New Zealand Antarctic Research Institute Prize: Marcus Arnold, University of Canterbury, MSc - “Surface Mass
A projects undertaking fieldwork, and two projects returning
Balance of the Ross Ice Shelf: Dating Snow Layers from
for a second season to collect instruments and data relating to
Radar by Using Stable Isotope Analysis”
the past year of measurement. The projects involved a range of activities from ice and sediment coring to an assessment of human impacts on the Ross Sea region. NZARI initiated a pilot study at Cape Adare in order to assess the appropriateness of this remote
New NZARI Projects Announced
area as a site for long-term monitoring of a changing climate and
In February, NZARI announced the results of its fourth funding
biome. This included an assessment of environmental impacts
round of Type A proposals. From 21 applications that had been
of the activity and feasibility of maintaining a long-term camp.
submitted, seven projects were selected for support. In addition,
This project is included in the collaboration with the Korean Polar
and for the first time, a Postdoctoral Fellowship was offered.
Research Institute (KOPRI).
These projects enable researchers to develop new technology and scientific approaches that will improve our understanding of
NZARI is now making good progress against its strategic initiatives
how Antarctica and its biology will respond as the world warms.
to address the challenges of changing Antarctic climates, ice sheets and iconic species. New publications are making a significant advance on our understanding of the vulnerability of Antarctic ice and ecosystems, and policy agencies such as the Intergovernmental
Successful projects 2015/16: ■■
from lava—ice interactions at Mason Spur, Mount Morning
Panel on Climate Change are moving to incorporate these new
volcano, McMurdo Sound, during mid-Late Miocene climatic
findings into their future climate predictions. The Antarctic Science Conference was held in the first week of
Past Antarctic ice sheet characteristics and stability deduced
warmth (GNS Science) ■■
Shining a light in the darkness: Winter science in the
July, with the theme “Antarctica: A Changing Environment”. The
McMurdo Dry Valleys (University of Canterbury and
four-day conference was co-sponsored by NZARI and Antarctica
Cawthron Institute)
New Zealand, and hosted by the University of Canterbury. The conference provided an opportunity for presenters to
■■
mechanism of adapting to a warmer more acidic coastal
showcase recent findings, build multidisciplinary links with other
Antarctic (University of Otago)
researchers and contribute to developing the future direction of our Antarctic Research Programme. There were more than 100
■■
aircraft (University of Otago)
researchers, and representatives from government and non■■
specific differences (Landcare Research)
May, and focussed on “Antarctic ecosystems in a changing world”. ■■
■■
to improve the literacy of the community to Antarctic and climate ■■
in the 2016 Antarctica New Zealand Postgraduate Research Scholarship Programme. These included: ■■
New Zealand Antarctic Research Institute Doctoral Scholarship: Alena Malyarenko, University of Otago/NIWA, PhD - “Interannual Ocean Variability in the Ross Sea”
16 Antarctica New Zealand
Past and future deformation of the Ross Ice Shelf (University of Otago)
science in order to promote the telling of science stories. NZARI sponsored a total of three postgraduate scholarships
Testing predicted tolerances of Antarctic non-marine biota across all trophic levels (Landcare Research)
policy, took part in a series of lectures, practical experiments and discussions over two days. The intention of the Winter School is
Mercury contamination in Adélie and emperor penguins in the Ross Sea: latitudinal, temporal, sexual, age and inter-
NZARI’s second Winter School was held on Great Barrier Island in Participants, including representatives from media, industry and
Sentinels of the Southern Ocean: measuring nutritional condition of right whales using remotely piloted multi-rotor
participants including students, early career and established governmental organisations.
Transgenerational Plasticity (TGP) in polar invertebrates as
Out of Antarctica: implications of extensive gene flow and multiple reproductive modes on the resilience of a Southern Ocean brittle star (Postdoctoral Fellowship; University of Auckland)
Antarctic Heritage Trust The Antarctic Heritage Trust is a New Zealand-based charity with
■■
a vision of Inspiring Explorers.
Essential ongoing maintenance and monitoring at Scott’s and Shackleton’s historic bases on Ross Island
In addition to caring for the iconic early explorers’ bases in
■■
Fundraising and planning commenced to conserve Hillary’s 1957 Trans-Antarctic Expedition Hut at Scott Base,
the Ross Sea region of Antarctica, the Trust encourages young
the foundation of New Zealand’s presence in Antarctica
people to explore. The Trust’s mission is to conserve, share and encourage the spirit
The Trust has also focused on sharing and encouraging the spirit
of exploration. Proud to collaborate with Antarctica New Zealand
of exploration through the following initiatives:
who provides vital support to both the Trust’s world-leading conservation projects in Antarctica and to the Trust’s operations
■■
The Trust’s Inspiring Explorers South Georgia Expedition traversed South Georgia Island via the Shackleton route
in Christchurch.
to honour the centenary of the original crossing
Key Achievements 2015/16
■■
The Trust exhibited the Still Life: Inside the Antarctic Huts
Antarctica
of Scott and Shackleton immersive digital exhibition,
New Zealand, has achieved some significant outcomes for the
which showcases photographer Jane Ussher’s Antarctic
Trust’s Ross Sea Heritage Restoration Project in the year:
imagery, at the Australian National Maritime Museum,
The
■■
Antarctic
Heritage
Trust,
supported
by
Sydney
The commencement of a multi-year programme of work to conserve the buildings and artefact collection
■■
at remote Cape Adare ■■
Our international team of conservators commenced
A Norwegian Broadcasting Corporation film crew travelled to Cape Adare to film the conservation efforts
from Norwegian explorer Carsten Borchgrevink’s huts ■■
New visual identity and new website, www.nzaht.org, to reflect the new vision of Inspiring Explorers
work at Canterbury Museum conserving the Cape Adare artefact collection returned from the site this summer
Antarctic Heritage Trust conservators at work in the Canterbury Museum Laboratory (L-R: Ciarán Lavelle, Stefanie White, Josefin Bergmark-Jimenez) © Antarctic Heritage Trust, 2016.
Annual Report 2015-2016 17
Being a Good Employer Antarctica New Zealand delivers high-quality outcomes for New Zealand science, environmental leadership and managing New Zealand’s interests in Antarctica. We do this through the calibre and dedication of the people who work for us. They include a mixture of permanent and fixed-term staff, contractors, seconded staff from the New Zealand Defence Force, and our many strategic partners in government. We recognise that in order to achieve success, employees need to be treated fairly and properly in all aspects of their employment. Antarctica New Zealand is committed to being a good employer. Antarctica
New
Zealand
promotes
Equal
Employment
Opportunities (EEO) to ensure that no barriers exist to prevent our people performing to their maximum potential. We have an EEO policy and programme which are reviewed annually. We have identified continuous improvement as a strategic focus and engage regularly with staff to get their input into
Ethnic Profile
Staff Numbers Ethnicity
30 June 2016 30 June 2015 30 June 2014
NZ European
29
36
30
NZ Maori
2
4
1
Australian
3
1
3
Asian
2
1
1
Pacific
0
0
0
Other
6
6
2
Total
42
48
37
Gender diversity at Senior Leadership Team Level
30 June 2016
30 June 2015
30 June 2014
Female
3
3
1
Male
4
4
5
We do not have any people with recognised disabilities.
the development, implementation and assessment of our EEO policy and programme. Ideas are incorporated from a variety of
Our people experience a more diverse workplace than our own
regular feedback opportunities including engagement with our
profile suggests, through our close working relationships, with
Senior Leadership Team, through individual monthly personal
the New Zealand Defence Force who second staff to work at
performance reviews, our annual staff engagement survey,
Scott Base, and our collaborations with other national Antarctic
and through seasonal debriefs and exit interviews. We use our
programmes, in particular those of the United States, Italy, Korea
Diversity Works New Zealand membership (formerly the EEO
and China.
Trust) to support our programme, raise awareness and educate about diversity issues.
Leadership, Accountability and Culture Shared values form the core of our high performing culture
Workplace Profile
where
people
thrive
and
develop
together.
Antarctica
New Zealand’s Antarctic Programme is made up of the following
New Zealand is consistently building a common culture through
permanent, fixed-term, contract and seconded staff:
our values, using a team process model and having a strong
Christchurch*
Scott Base ** Summer
Scott Base ** Winter
2016 2015 2014
2016 2015 2014
2016 2015 # 2014
Male
14
14
15
23
27
25
8
15
9
Female
17
15
11
11
10
10
3
4
2
Total
31
29
26
34
37
35
11
19 11
Returnee %
⁄
⁄
⁄
41%
43% 40% 45% 37% 64%
* Permanent, fixed-term staff and seconded staff. ** Fixed-term, contract and seconded staff. # Included a project team of eight building the internal fit-out for the Hillary Field Centre (HFC) science facility.
absolutely fundamental in everything we do. During the year we undertook an organisational wide engagement survey using an external provider (for the second year in a row). The results showed strong engagement in the Christchurch workforce but did show some reduced engagement at Scott Base. People have immense pride in, and are committed to Antarctica New Zealand and their work. “The people are great because everyone cares about what the organisation is trying to achieve and they are all passionate about what they do” (staff
At 30 June 2016 - Christchurch and Scott Base (Winter)
comment). The survey has provided us with some good insights
Age Profile
Age Range
focus on accountability. Health, safety and sustainability are
into the different experiences staff have. It identified key drivers
Staff Numbers 30 June 2016 30 June 2015 30 June 2014
for us to focus on in order to build a successful future which included continuing to articulate clear strategy and planning
20-29
6
8
2
and building an inclusive culture where people feel their voices
30-39
16
16
8
are heard.
40-49
12
13
12
50-59
7
11
11
Recruitment, Selection and Induction
60+
1
0
4
We aim to continually enhance our systems for attracting,
Average Age
41
41
47
selecting and appointing appropriately skilled and qualified people who can contribute positively to Antarctica New Zealand’s objectives, values and culture. As part of our EEO programme we
18 Antarctica New Zealand
With this in place we can attract, retrain and motivate staff
eliminate any barriers or bias for potential employees.
with the necessary knowledge, competencies and skills to meet organisational goals and objectives.
Because of the remote location in which we operate in Antarctica, we offer our seasonal Scott Base staff fixed term employment of 5
Antarctica
months (summer only roles) or 13 months (summer/winter roles).
consultant to evaluate role descriptions and provide market data
New
Zealand
uses
an
independent
external
on remuneration rates. Salary progression is linked to individual We actively encourage high performing Scott Base staff,
performance as measured by the performance management
identified through our performance management system, to
system. Our remuneration policy also considers internal equity
return for further periods of employment in future seasons.
to maintain salary relativities.
The role specific and Antarctic knowledge they bring back to the organisation is a significant factor to our success. This year we
Harassment
are introducing better ways to support returning staff to develop
Antarctica New Zealand is committed to providing a work
other skills or their personal aspirations during their time off ice.
environment that is free from any form of harassment,
Employee Development
including sexual and racial harassment, and has policies to this effect. We have developed clear guidance to employees and
We expect team leaders to meet monthly with each of their
managers outlining procedures for dealing with any allegation of
direct reports. This provides a regular feedback opportunity for
harassment on a timely basis.
quality conversations between a team member and their team leader. It provides a formal avenue for reviewing performance,
Safe and Healthy Environment
recognising achievements, measuring progress against agreed
Health and safety is a core value and our highest organisational
key performance indicators (KPIs) and highlighting risks and
priority. We believe all injuries and occupational illnesses
opportunities. From these discussions staff development
are preventable and that business excellence is linked to safe
opportunities are identified and training needs addressed. The end
outcomes.
of performance year concludes with an end of year performance appraisal which incorporates an opportunity to reflect on the last
Rigorous management of risk with an unequivocal commitment
year, achievement of KPIs and personal development, and how
to health and safety helps to protect all people working in the
individual behaviour aligns with our values.
New Zealand Antarctic programme from harm. We will continue to enhance our systems, processes and standards to underpin
Although Antarctica New Zealand is a small organisation
our relentless focus on safety and our commitment to zero harm.
opportunities for internal career development can still be created
Our Chief Executive, Peter Beggs, has joined the Business Leaders
through challenging tasks and assignments, secondments and
Health and Safety forum in the last year. This forum is bringing
internal promotions. Organisational training themes to support
leaders together with a common vision for zero harm workplaces
employee development are identified and incorporated into our
to model and grow inspirational, highly visible safety leadership.
annual training plan.
Flexibility and Work Design
We take the well-being of employees seriously and offer a range of measures to support this including health checks, workplace
We recognise the need for workplace design that assists
ergonomic assessments, an annual flu vaccination clinic and an
employees in balancing work with the rest of their lives. Flexible
annual mole mapping clinic on site. We also provide access to
working arrangements that do not adversely impact business
an Employee Assistance Programme (EAP) to all employees and
performance are offered where possible. For example, staff will
their partners.
work from home on occasion in order to maximise productivity away from distractions at the office, to achieve greater flexibility
Health and safety is embedded in all of our work, for example
with their work hours or to avoid time spent commuting.
team meetings start with a topical safety discussion. Health and safety committees at Christchurch and Scott Base are proactive,
Antarctica New Zealand also has flexible leave arrangements
working on systems improvements, monitoring both lead and
that provide opportunities for employees to achieve appropriate
lag indictors and reviewing investigations and analyses. Our
work-life balance. Managers are accountable for providing
culture is strong, actively focussing on reviewing investigations
support and coaching to manage workloads.
and analyses. We have a strong safety culture and are actively
Remuneration, Recognition and Conditions
focussing on ensuring our systems and processes are fit for purpose and that we are compliant with the new legislation. The
We seek to provide a fair, flexible and transparent recognition
Health and Safety Improvement Project will improve our system
and reward system that is based on individual performance.
to be certified against OHSAS 18001:2007 by December 2017.
Annual Report 2015-2016 19
Being a Good Employer
provide training and support to recruiters in EEO principles to
Antarctica New Zealand’s Team 1 July 2015 – 30 June 2016 Christchurch Staff Peter Beggs Kylie Wood Peter Smith Angela Lee Brad Phillips Deena Barteling Gary Staniforth Mashitah Robson Greg Jack Mike Mahon Jenny Ryan Zane Tait Anita Kerr Jeanine Foster Krystie Hedley Alison Stewart Madeleine Castle Alex McKay Simone Kent Trudie Baker Julie Patterson Gary MacPherson
Chief Executive Executive Assistant GM Corporate Services & Strategy Finance Manager Management Accountant from Sept 2015 Accounts & Purchasing Coordinator Accounting Assistant to Jan 2016 Accounting Assistant from Jan 2016 Information Services Manager to August 2015 Information Services Administrator Information Services & Applications Advisor to March 2016 IT Systems Engineer from Dec 2015 Information & Records Manager from June 2016 GM Communications Communications Assistant Administration Manager to August 2015 Administration Officer to March 2016 Administration Officer from Jan 2016 Administration Officer from June 2016 Business Performance Manager to July 2015 GM People & Performance from August 2015 Human Resources Manager Assets & Engineering Manager to July 2015 GM Assets & Engineering from August 2015
Scott Base Staff Simon Trotter Peter McCarthy Tracey Bean Trudie Baker Alister McColl Johno Leitch Bruce Stevenson Andy Waters Tony Scott Shulamit Gordon Amanda Christophers Mike Lundin Becky Goodsell Natasha Cameron Darryn Bennett Richie Hunter Richard Bottomley Drew Coleman Mike Rowe Heidi Godfrey Andrew Hefford Luke Hasselman Shaun Clark Mark Deaker Brian Gunn Jason Laing Tom Arnold Jeff Rawson Mike Allison
20 Antarctica New Zealand
Programme Support Supervisor Programme Support Supervisor Programme Support Supervisor Services Supervisor Services Supervisor / SNO (NZDF) Engineering Supervisor / Andrill Project Engineer Engineering Supervisor Winter Base Leader Winter Engineering Supervisor Operations Scheduler Field Support Field Support Field Support (winter over) Feb – Oct Cargo Handler (NZDF) Cargo Support (Air New Zealand) Oct - Nov Field Training Coordinator Field Training Instructor Field Training Instructor Field Training Instructor Field Training Instructor (Oct - Nov) Southern Lakes Helicopters (Oct – Dec) Southern Lakes Helicopters (Oct – Dec) Southern Lakes Helicopters (Oct – Dec) Southern Lakes Helicopters (Dec – Jan) Southern Lakes Helicopters (Dec – Feb) Southern Lakes Helicopters (Jan) Event Field Support to Dec Event Field Engineer to Dec Chef
Amy Blakemore Jason Marshall Johno Leitch Simon Shelton Simon Trotter Paul Woodgate Rob Stewart Bob Isles Peter McCarthy Tracey Bean Alister McColl Amy Pamment Gary Wilson Nicole Stahlmann Fiona Shanhun Jana Newman Ceisha Poirot Andy White
Asset Management Engineer Asset Management Engineer to July 2015, from June 2016 Asset Management Engineer from January 2016 HFC Project Manager Antarctic Operations & Planning Manager to July 2015 GM Antarctic Operations from August 2015 Logistics Manager Logistics Officer Cargo Logistics Officer Clothing (Sept 2015 – April 2016) Antarctic Programme Planner Event Project Manager Senior National Officer (NZDF) to March 2016 Operations Support from January 2016 Chief Scientific Advisor (NZARI staff) Science Research Advisor to March 2016 Science Programme Advisor from Sept 2015 GM Policy, Environment & Safety Environmental Manager Health & Safety Manager from July 2015 to June 2016
Keith Garrett Rob Saker Matthew Cameron Shannon Pevreal Joshua Adams Katrina Grenfell Anna Ryder Christine Sinclair Vonny Sprey Chelsea Lodge Paul Bowering Tony Scott Andy Waters Michael Cardilini Matt Pottinger Rob Nesbit Dean Clark Craig Winter Jason Millar Nichollette Brown Ursula Jewell Keith Roberts Anthony Hoffman Terrel Skafer Jonathan Hearfield Anthony Powell Ash Cotter
Chef (winter over) Communications Operator (NZDF) Communications Operator (NZDF) Communications Operator (NZDF) Communications Operator (NZDF) Domestic to April Domestic Domestic/Medic Domestic/Medic (winter over) Feb – Oct Shop & Bar Coordinator (Compass) Base Engineer Base Engineer (winter over) Base Engineer (winter over) Feb – Oct Carpenter (winter over) Electrician Electrician (winter over) Mechanic Mechanic Mechanic (winter over) Feb – Oct Technical Support Technical Support (winter over) Telecommunications Technician (Downer) Telecommunications Technician (Downer) winter over Jan – Oct Plant Operator (NZDF) Plant Operator (NZDF) to Jan Special Projects (winter over) Engineering Support (Air New Zealand) Oct - Nov
Financial Statements and Statement of Performance
Pressure ridges, Ross Island. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
Statement of Responsibility for the year ended 30 June 2016
In terms of Section 155 of the Crown Entities Act 2004, the Board
In the Board’s opinion, the financial statements and statement
of Antarctica New Zealand is responsible for:
of service performance for the year ended 30 June 2016 fairly reflect the financial position and operations of Antarctica
■■
The preparation of the financial statements and statement
New Zealand.
of service performance and for the judgements in them ■■
Establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting Brian Roche Chairman 23 September 2016
Tony O’Brien Board Member 23 September 2016
Annual Report 2015-2016 21
Independent Auditor’s Report To the readers of New Zealand Antarctic Institute’s financial statements and statement of performance for the year ended 30 June 2016 The Auditor-General is the auditor of New Zealand Antarctic Institute (the Institute). The Auditor-General has appointed me, John Mackey, using the staff and resources of Audit New Zealand, to carry out the audit of the financial statements and the statement of performance, including the statement of performance, of the Institute on her behalf.
Opinion on the financial statements and the statement of performance We have audited: •
•
the financial statements of the Institute on pages 32 to 50, that comprise the statement of financial position as at 30 June 2016, the statement of comprehensive revenue and expenses, statement of changes in equity and statement of cash flows for the year ended on that date and the notes to the financial statements that include accounting policies and other explanatory information; and the statement of performance of the Institute on pages 23 to 31.
In our opinion: •
The financial statements of the Institute: o present fairly, in all material respects: • its financial position as at 30 June 2016; and • its financial performance and cash flows for the year then ended; and o comply with generally accepted accounting practice in New Zealand and have been prepared in accordance with Tier 2 Public Benefit Entity International Public Sector Accounting Standards.
•
The statement of performance: o presents fairly, in all material respects, the Institute’s performance for the year ended 30 June 2016, for each class of reportable outputs: • its standards of performance achieved as compared with forecasts included in the statement of performance expectations for the financial year; • its actual revenue and output expenses as compared with the forecasts included in the statement of performance expectations for the financial year; o complies with generally accepted accounting practice in New Zealand.
Our audit was completed on 23 September 2016. This is the date at which our opinion is expressed.
22 Antarctica New Zealand
The basis of our opinion is explained below. In addition, we outline the responsibilities of the Board and our responsibilities, and explain our independence.
Basis of opinion We carried out our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the International Standards on Auditing (New Zealand). Those standards require that we comply with ethical requirements and plan and carry out our audit to obtain reasonable assurance about whether the financial statements and the statement of performance are free from material misstatement. Material misstatements are differences or omissions of amounts and disclosures that, in our judgement, are likely to influence readers’ overall understanding of the financial statements and the statement of performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion. An audit involves carrying out procedures to obtain audit evidence about the amounts and disclosures in the financial statements and the statement of performance. The procedures selected depend on our judgement, including our assessment of risks of material misstatement of the financial statements and the statement of performance, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the preparation of the Institute’s financial statements and statement of performance in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute’s internal control. An audit also involves evaluating: •
the appropriateness of accounting policies used and whether they have been consistently applied;
•
the reasonableness of the significant accounting estimates and judgements made by the Board;
•
the appropriateness of the reported statement of performance within the Institute’s framework for reporting performance;
•
the adequacy of the disclosures in the financial statements and the statement of performance; and
•
the overall presentation of the financial statements and the statement of performance.
We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and the statement of performance. Also, we did not evaluate the security and controls over the electronic publication of the financial statements and the statement of performance. We believe we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
Statement of
Service Performance for the year ended 30 June 2016
Performance achieved against agreed measures, standards and costs for all outputs The overall requirement of Antarctica New Zealand is to deliver Foreign Affairs and Trade Non-Departmental Output Class 01 Antarctic Research and Support.
Responsibilities of the Board
Description Under this output class, the Minister purchases the following
The Board are responsible for preparing financial statements and statement of performance that:
outputs for the development, management and execution
•
comply with generally accepted accounting practice in New Zealand;
Southern Ocean, in particular the Ross Dependency. The outputs
•
present fairly the Institute’s financial position, financial performance and cash flows; and
•
present fairly the Institute’s performance.
of New Zealand activities in respect of Antarctica and the purchased will include: ■■
support New Zealand’s activities in Antarctica through the year-round safe operation of Scott Base and an efficient logistics supply chain with New Zealand. Performance will
The Board’s responsibilities arise from the Crown Entities Act 2004. The Board are responsible for such internal control as it determines is necessary to enable the preparation of financial statements and statement of performance that are free from material misstatement, whether due to fraud or error. The Board are also responsible for the publication of the financial statements and the statement of performance, whether in printed or electronic form.
be assessed on the effectiveness of the services provided to programme participants and partners ■■
for New Zealand’s Antarctic operations and contribute to the protection of the wider Antarctic environment. Performance will be assessed by a range of service quality measures ■■
Facilitating and supporting science – This class of output is intended to ensure that only high quality Antarctic research is selected and supported. Performance will be assessed a
Independence
range of service quality measures. The longer term impact of this output will be assessed by the growth in quality of the
When carrying out the audit, we followed the independence requirements of the Auditor-General, which incorporate the independence requirements of the External Reporting Board. Other than the audit, we have no relationship with or interests in the Institute.
Environmental stewardship – This class of output is intended to achieve a high standard of environmental performance
Responsibilities of the Auditor We are responsible for expressing an independent opinion on the financial statements and the statement of performance and reporting that opinion to you based on our audit. Our responsibility arises from the Public Audit Act 2001.
Operational presence – This class of output is intended to
research performed ■■
Engaging the public – This class of output is intended to achieve a raised awareness amongst New Zealander’s about Antarctica and the Southern Ocean and its relevance to New Zealand. Performance will be assessed by delivery of services. The effectiveness of the services will be assessed by stakeholder survey
John Mackey Audit New Zealand On behalf of the Auditor-General Christchurch, New Zealand
■■
International linkages – This class of output is intended to connect New Zealand organisations with an interest in Antarctica internationally. Performance will be assessed by the number of international collaborations and engagements facilitated
■■
Contributing to the Canterbury rebuild – This class of output is intended to support Christchurch and Canterbury’s Antarctic related economic activities to be successful and grow. The performance of the class of outputs will be assessed by a range of service quality measures. The longer term impact of this output will be assessed by the growth in economic impact of Antarctic related activities
Annual Report 2015-2016 23
Output Title 1.0
OPERATIONAL PRESENCE
Description
This class of output is intended to support New Zealand’s activities in Antarctica through the year-round safe operation of Scott Base and an efficient logistics supply chain with New Zealand. Performance will be assessed on the effectiveness of the services provided to programme participants and partners.
Costs
Full Year Actual ($000)
($000)
Revenue – Crown
12,706
12,499
Revenue – Other
Performance Measures
Full Year Estimate
642
590
Total Revenue
13,348
13,089
Total Expenses
13,826
13,604
Performance Standards 2015 – 2016 (Full Year Target)
2015 – 2016 (Full Year Result)
Maintain a year-round operational presence at Scott Base.
Achieved.
Achieved. Operational presence has been maintained throughout the year. The 2015/16 summer season was delivered successfully and stage one of the Hillary Field Centre development was completed.
Health, Safety and Environmental incidents assessed with an impact of “moderate” (medical treatment required or offsite spill contained with outside assistance) or more.
Zero Harm: No incidents assessed with "moderate" or more severity.
Not achieved. One incident has been assessed as having a “moderate” consequence; a drill bit shattered and a 7mm piece of the bit was embedded in the drill operator’s arm. The injury required one stitch. Recommendations from the investigation have been taken and the risk mitigated.
The United States National Science Achieved. Foundation confirms that New Zealand’s agreed commitments to the joint United States/New Zealand logistics pool were met for the year.
Achieved. The United States National Science Foundation has confirmed that Antarctica New Zealand met its commitments to the joint United States/New Zealand logistics pool for the 2015/16 season.
Work with stakeholders to ensure that New Zealand has the capability to contribute to a sustainable Antarctic air link.
Potential solutions for New Zealand’s Antarctic airlift capability and an alternative runway at McMurdo Sound are advanced.
Achieved. A replacement runway to Pegasus, Phoenix, will undergo flight landing testing at the end of 2016. Antarctica New Zealand has worked with New Zealand Defence Force, Royal New Zealand Air Force, United States Antarctic Program and Air New Zealand to consider and prepare medium to long term security of a sustainable Antarctic air link.
Antarctic programme participants’ rating of how well their logistics support objectives were achieved against the agreed plan (science and non-science events).
95% overall.
Achieved. The average performance rating was 96.7% (2015 – 96.8%) from 79 programme participants’ ratings.
The conservation of the historic huts and other heritage sites in the Ross Dependency are effectively supported.
Logistical support provided in accordance with the terms of the Letter of Understanding between Antarctica New Zealand and the Antarctic Heritage Trust.
Achieved. Support has been provided as per the Letter of Understanding between Antarctica New Zealand and the Antarctic Heritage Trust. This includes supporting a conservation team visit to Cape Adare to undertake conservation work on Borchgrevink's hut. In addition many of the artefacts from the hut were retrieved and returned to New Zealand for conservation.
Scott Base capital plan projects scheduled for completion during the year are delivered on time, to specification and within budget: ■■
Hillary Field Centre Upgrade (Stage One)
24 Antarctica New Zealand
Achieved.
Achieved. The Hillary Field Centre (HFC) Upgrade Stage One was completed on schedule and under budget. HFC Stage Two works started in December 2015, with completion expected in April 2017. Stage Two of the project is currently running on time and budget, with zero safety incidents.
Statement of Service Performance Scott Base. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
Output Title 2.0
ENVIRONMENTAL STEWARDSHIP
Description
This class of output is intended to achieve a high standard of environmental performance for New Zealand’s Antarctic operations and contribute to the protection of the wider Antarctic environment. Performance will be assessed by a range of service quality measures.
Costs
Performance Measures
Full Year Estimate
($000)
($000)
Revenue – Crown
785
821
Revenue – Other
17
18
Total Revenue
802
839
Total Expenses
802
839
Performance Standards 2015 – 2016 (Full Year Target)
New Zealand’s Antarctic programme is an exemplar of sustainability.
Full Year Actual
2015 – 2016 (Full Year Result)
Maintain Enviro-Mark®NZ Diamond Standard accreditation.
Achieved. Antarctica New Zealand is the first organisation in New Zealand to be certified by Enviro-Mark® Solutions with EnergyMark® Bronze Standard.
Implement an energy management system by 30 June 2016.
Achieved. Antarctica New Zealand is the first organisation in New Zealand to be certified by Enviro-Mark® Solutions with Energy-Mark® Bronze Standard.
Implement joint sustainability initiatives with the US Antarctic program with bi-annual oversight meetings between the Operations Managers of both programmes.
Achieved. A project to automate Scott Base’s generators within the wider Ross Island electrical grid has now gone live with the potential to significantly reduce the carbon emissions of both Bases.
Ministry of Foreign Affairs (MFAT) indicates satisfaction with the quality and timeliness of environmental advice provided to them and to international meetings.
Achieved.
Achieved. Officials have confirmed their satisfaction with the quality and timeliness of our environmental advice. Antarctica New Zealand staff played key roles in supporting New Zealand’s continued leadership in the meetings of the Antarctic Treaty System, particularly so in the Committee on Environmental Protection.
MFAT indicate satisfaction with the quality and timeliness of technical advice on Environmental Impact Assessments provided in support of the Minister’s responsibilities under the Antarctica (Environmental Protection) Act 1994.
Achieved.
Antarctica New Zealand fully complies with the terms of its own Environmental Impact Assessment and permit issued under the Antarctica (Environmental Protection) Act 1994.
Compliant.
Joint United States/New Zealand sustainability partnership is fully operational and producing carbon emission reductions.
26 Antarctica New Zealand
Antarctica New Zealand and United States Antarctic Programme officials met in April 2016 to identify further joint sustainability initiatives, and agreed to explore opportunities to share science facilities and field huts.
Achieved. Officials have confirmed their satisfaction with the quality and timeliness our technical advice, and noted that it has been of consistent high quality.
Achieved. Our Environmental Management System has supported compliance with the provisions and conditions of Antarctica New Zealand’s own Environmental Impact Assessment and Notification/Permit.
ENVIRONMENTAL STEWARDSHIP continued
Performance Measures
Performance Standards 2015 – 2016 (Full Year Target)
The state of the Ross Dependency environment is better understood and managed.
2015 – 2016 (Full Year Result)
Third party funding commitments sufficient to ensure the on-going financial sustainability of the Environments Portal are secured by 31 March 2016.
Achieved. The US-based Tinker Foundation generously provided funding to support the operation of the Portal for the next three years (July 2015 to June 2018 inclusive).
Transfer hosting of the Environments Portal to an appropriate external organisation by 31 March 2016.
Achieved. The Antarctic Environments Portal is now hosted by Gateway Antarctica at the University of Canterbury.
Two management plans for Antarctic Specially Protected Areas (ASPA’s) in the Ross Sea region are reviewed and updated.
Achieved. Revised Management Plans for Cape Bird and Canada Glacier were adopted by the Antarctic Treaty Parties in May 2016.
Pressure ridges. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
Annual Report 2015-2016 27
Statement of Service Performance
Output Title 2.0
Output Title 3.0
FACILITATING AND SUPPORTING SCIENCE
Description
TThis class of output is intended to ensure that only high quality Antarctic research is selected and supported. Performance will be assessed a range of service quality measures. The longer term impact of this output will be assessed by the growth in quality of the research performed.
Costs
Revenue – Crown
Full Year Actual
($000)
1186
1044
Revenue – Other
Performance Measures
Perform an annual Antarctic science selection process in cooperation with Science funders.
Full Year Estimate
($000) 70
136
Total Revenue
1,256
1180
Total Expenses
1,918
1,802
Performance Standards 2015 – 2016
2015 – 2016
(Full Year Target)
(Full Year Result)
Achieved.
Achieved. In 2015/16 we launched a new application process for logistics support. This allows logistic requests to be assessed in parallel with science proposal peer reviews by MBIE, Marsden and NZARI. Applicants are required to outline their logistic needs, so that Antarctica New Zealand can assess cost, benefit and timeframe; how their research delivers on the government strategy for Antarctic Research, including contributions to policy needs; environmental considerations; and how they will communicate the findings. This new process allows Antarctica New Zealand to provide logistics input before a decision is made to provide science funding.
The value and relevance of Antarctic research is measured.
Science performance information collected annually to measure the quality of science produced by Antarctica New Zealand supported researchers (papers produced and citations of those papers).
Achieved. In 2015 scientists supported by Antarctica New Zealand produced 67 (2015 -65) peer-reviewed publications and there were 1135 (2015 – 1119) citations over the last six years. Research papers are generally prepared a year after completing Antarctic fieldwork.
MFAT indicates satisfaction with the quality and timeliness of support provided for its midterm review of the Antarctic and Southern Ocean Science Directions and Priorities 20102020 strategy document.
Achieved.
Achieved. Support has been provided to MFAT’s satisfaction, for its mid-term review of the Antarctic and Southern Ocean Science Directions and Priorities 2010-2020 strategy document.
New Zealand has an integrated Southern Ocean marine research programme and platform with international collaborations.
Work with NIWA and key national and international partners to ensure that research findings and scientific papers from the Southern Ocean scientific voyage in 2014/15 are written up and published.
Achieved. Results for the key science objectives are as follows: Objective A – Determine factors influencing the abundance and distribution of Humpback Whales around the Balleny Islands – two papers to CCAMLR working groups on Krill biomass. Objective B – Habitat characteristics of blue whale foraging ‘hotspots’ in the northern Ross Sea – three papers to International Whaling Commission Scientific Committee. Objective C – Carry out a demersal trawl survey of the Ross Sea Slope to estimate abundance and distribution of demersal fish species – paper to CCAMLR Working Group. Objective D – Deploy a moored echo sounder to study Antarctic Silverfish spawning in Terra Nova Bay during winter – results yet to be analysed. Objective E – Undertake oceanographic and atmospheric observations of the Southern Ocean – data still being analysed, preliminary findings presented to the European Geophysical Union.
28 Antarctica New Zealand
Description
ENGAGING THE PUBLIC This class of output is intended to achieve a raised awareness amongst New Zealander’s about Antarctica and the Southern Ocean and its relevance to New Zealand. Performance will be assessed by delivery of services. The effectiveness of the services will be assessed by stakeholder survey.
Costs
Performance Measures
Planned education, outreach and communication actions are undertaken annually.
Revenue – Crown
Full Year Actual ($000) 688
Full Year Estimate ($000) 733
Revenue – Other
151
16
Total Revenue
839
749
Total Expenses
839
749
Performance Standards 2015 – 2016
2015 – 2016
(Full Year Target)
(Full Year Result)
Deliver a comprehensive public awareness programme which includes media, arts, youth and invited visitor initiatives.
Achieved. The 2015/16 Community Engagement Programme achieved strong coverage across all media formats, from print blogs, radio and TV. 5,000 Kiwi students participated in a LEARNZ virtual field trip to Antarctica from the comfort of their classroom, and TVNZ weatherman Dan Corbett bought the weather and science undertaken at Scott Base into the living rooms of New Zealanders. National Geographic filmed season one of ‘Continent 7: Antarctica’, a six-part global TV series celebrating New Zealand’s science and leadership in Antarctica.
Two stakeholder outreach functions held annually.
Achieved. The Antarctic season-opening stakeholder reception engaged the support of influential figures and the wider public to celebrate Antarctica and our Antarctic history. The New Zealand premiere of Ice Age: Collision Course was hosted by Antarctica New Zealand (alongside Christchurch City Council) with more than 400 people learning about Antarctica through two of the films costume characters who filmed a series of short videos from Scott Base to support education kits for school students and their teachers. We also provided members of Parliament with a briefing on the current critical issues facing Antarctic science and operations.
Measure baseline communications performance using newly developed range of measures, by 30 June 2016.
Achieved. From July 2015 to June 2016, Antarctica New Zealand received 325 online media mentions internationally gaining a potential audience reach of 234 million and a potential advertising value equivalent of $2,171,105. Across the period, The New Zealand Herald and TVNZ produced the greatest volume of mentions. Net tonality increased 302.86% indicating a substantial growth in positive mentions in media. Antarctica New Zealand’s social media performance also experienced considerable growth, with engagement levels exceeding that of any other national Antarctic programme.
Support science programmes to develop and deliver an outreach plan for their scientific research in Antarctica.
Achieved. We engaged with the science community to support and add value to their existing communications strategies; connected media with science before the start of the Antarctic season; supported scientists to present at media outreach events such as NZARI Winter School; and used our strong digital media platforms to communicate science stories. The outcomes resulted in consistent public-facing science outreach.
Annual Report 2015-2016 29
Statement of Service Performance
Output Title 4.0
Output Title 5.0
INTERNATIONAL LINKAGES
Description
This class of output is intended to connect New Zealand organisations with an interest in Antarctica internationally. Performance will be assessed by the number of international collaborations and engagements facilitated.
Costs
Performance Measures
Internationally well connected Antarctic Programme through international exchanges; collaborations; and representation at international forums.
30 Antarctica New Zealand
Full Year Actual
Full Year Estimate
($000)
($000)
Revenue – Crown
89
126
Revenue – Other
2
3
Total Revenue
91
129
Total Expenses
91
129
Performance Measures 2015 – 2016
2015 – 2016
(Full Year Target)
(Actual Result)
New Zealand advances the formation of at least two significant collaborative projects with the United States in the Ross Sea region.
Achieved. Collaborative projects with the United States include the establishment of a joint science working group for the future development of Arrival Heights, collaborative research on the Ross Ice Shelf, collaborative research associated with the Dry Valleys LTER and a geological sampling programme at Friis Hills in the Dry Valleys. Two new discussions were initiated for future collaborations - winter science at Lake Fryxell and collaborative research on the West Antarctic Ice Sheet.
Sign cooperation arrangement with China’s Antarctic Programme.
In progress. Formal interagency agreements were not signed between Antarctica New Zealand and China’s Antarctic Programme, however cooperation with China was advanced at an operational level with support for Chinese programme participant’s visits to Christchurch and Scott Base during the operational season. A China/New Zealand Bilateral discussion was held in the margins of the ATCM conference, with progress made on areas of mutual support.
Conduct activities under individual co-operation agreements with Australia, Korea and Italy to realise mutual benefits.
Achieved. Cooperation activities and joint logistics sharing were negotiated and agreed with Australia, Korea and Italy for the 2015/16 Antarctic season.
Support the activities of the COMNAP secretariat based in Christchurch and play an active role at its annual meeting of member Antarctic Programmes.
Achieved. Antarctica New Zealand participated in the COMNAP AGM in Tromso, Norway in September 2015. Antarctica New Zealand is represented in each of COMNAP’s expert working groups, demonstrating New Zealand leadership and expertise in Antarctic operational matters.
CONTRIBUTING TO THE CANTERBURY REBUILD
Description
This class of output is intended to support Christchurch and Canterbury’s Antarctic related economic activities to be successful and grow. The performance of the class of outputs will be assessed by a range of service quality measures. The longer term impact of this output will be assessed by the growth in economic impact of Antarctic related activities.
Costs
Performance Measures
Full Year Actual
Full Year Estimate
($000)
($000)
Revenue – Crown
56
57
Revenue – Other
0
0
Total Revenue
56
57
Total Expenses
56
57
Performance Measures 2015 – 2016
2015 – 2016
(Full Year Target)
(Full Year Result)
The role of Antarctic related activity within Christchurch’s wider economic development plan is clear.
Engage with key stakeholders to promote the preparation of coordinated Antarctic related economic development initiatives.
Achieved. Antarctica New Zealand has been instrumental in the development and implementation of Christchurch city’s Antarctic strategy, including the development of the Antarctic Office. The Antarctic Office will be the centrepiece of the city’s Antarctic cooperation activities and is chaired by Antarctica New Zealand’s Cheif Executive.
Christchurch City Council indicates satisfaction with the quality and timeliness of support provided to its newly created Antarctic Office.
Achieved.
Achieved. Christchurch City Council expressed a high level of satisfaction with the support received for the establishment of the Antarctic Office. This has included provision of office space, allowing the Antarctic Office to be embedded within the wider Christchurch Antarctic community, and shared services such as reception, administration and IT.
Economic impact study completed bi-annually.
Achieved.
Achieved. A follow-up economic impact study was completed by Lincoln University in May 2016. The May report, based on 2015 data shows improvement from the previous 2013 result, particularly overall Canterbury direct economic impact (now $124.7m, a 21% increase from 2013).
Dry Valleys. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
Annual Report 2015-2016 31
Statement of Service Performance
Output Title 6.0
Financial Statements for the year ended 30 June 2016
Statement of Accounting Policies
Functional and presentation currency The financial statements are presented in New Zealand dollars
Reporting entity Antarctica New Zealand is the trading name of the New Zealand
and all values are rounded to the nearest thousand dollars ($000) unless otherwise stated. The functional currency of Antarctica New Zealand is New Zealand dollars.
Antarctic Institute, a Crown Entity established by the New Zealand Antarctic Institute Act (1996). The Crown Entity is domiciled in New Zealand and operates in New Zealand as well as Antarctica
Significant accounting policies
and the Southern Ocean. Antarctica New Zealand’s ultimate
(a) Revenue
parent is the New Zealand Crown.
Revenue is recognised to the extent that it is probable that the economic benefit will flow to Antarctica New Zealand
Antarctica New Zealand is responsible for developing, managing
and revenue can be reliably measured. Revenue is
and executing New Zealand Government activities in Antarctica
measured when earned at the fair value of consideration
and the Southern Ocean, in particular the Ross Dependency. For
received or receivable. The following specific recognition
the purposes of financial reporting under Public Benefit Entity
criteria must be met before revenue is recognised.
International Public Sector Accounting Standards (“PBE IPSAS”), Antarctica New Zealand is a public benefit entity. The financial statements for Antarctica New Zealand are for the
Revenue from non-exchange transactions
Revenue from the Crown
Antarctica New Zealand is primarily funded through
year ended 30 June 2016, and were approved by the Board on 23
revenue received from the Crown, which is restricted in its
September 2016.
use for the purpose of Antarctica New Zealand meeting its objectives as specified in the Statement of Intent.
Basis of preparation
Revenue from the Crown is recognised as revenue when
Statement of compliance
earned and is reported in the financial period to which it
The financial statements of Antarctica New Zealand have been
relates.
prepared in accordance with the Crown Entities Act 2004, which includes the requirement to comply with New Zealand generally
Contributions/Sponsorship Revenues
accepted accounting practice (NZ GAAP).
These revenues are recognised when the conditions attached to the grant has been complied with. Where there
The financial statements comply with PBE IPSAS and other
are unfulfilled conditions attached to the revenue, the
applicable financial reporting standards, as appropriate that
amount relating to the unfulfilled condition is recognised
have been authorised for use by the External Reporting Board
as a liability and released to revenue as the conditions are
for the Public Sector entities. For the purposes of complying with
fulfilled.
NZ GAAP, Antarctica New Zealand is eligible to apply Tier 2 PBE IPSAS on the basis that it does not have public accountability and
Vested assets
it is not defined as large.
Where a physical asset is gifted to or acquired by Antarctica New Zealand for nil or nominal consideration, the fair value
The Board has elected to report in accordance with Tier 2 Public
of the asset received is recognised as revenue in the surplus
Sector PBE Accounting Standards and in doing so has taken
or deficit. Such assets are recognised as revenue when
advantage of all applicable Reduced Disclosure Regime (“RDR”)
control over the asset is obtained.
disclosure concessions.
Revenue from exchange transactions
The accounting policies adopted in these financial statements
Interest
are consistent with those of the previous financial year.
Interest revenue is recognised using the effective interest rate method.
Summary of accounting policies The accounting policies set out below have been applied
Provision of services
Revenue derived through the provision of services to third parties is recognised when earned and is reported in the
consistently to all periods presented in these financial statements.
financial period to which it relates. Measurement base The financial statements have been prepared on a historical cost
(b) Leases Finance leases
basis.
32 Antarctica New Zealand
Finance leases transfer to the lessee substantially all the
risks and rewards incidental to ownership of an asset.
flows of ANDRILL has been incorporated into the financial
The Crown Entities Act 2004 does not permit Antarctica
statements on a line-by-line basis using the proportionate
New Zealand to enter into a finance lease without joint
method
approval of the Minister of Finance and Minister of Foreign Affairs. At the commencement of the lease term,
(g) Derivative financial instruments, hedging activities and foreign currency transactions
Antarctica New Zealand recognises finance leases as assets and liabilities in the statement of financial position at the
Antarctica
New Zealand
uses
derivative
financial
lower of the fair value of the leased item or the present
instruments to hedge its foreign exchange risk arising from
value of the minimum lease payments. The finance charge
operational activities.
is charged to the surplus or deficit over the lease period so as to produce a constant periodic rate of interest
Derivative financial instruments are recognised both initially
on the remaining balance of the liability. The amount
and subsequently at fair value. They are reported as either
recognised as an asset is depreciated over its useful life.
assets or liabilities depending on whether the derivative is in a net gain or net loss position respectively. Recognition of
Operating leases
movements in the value of derivatives depends on whether
Lease payments under an operating lease, where the lessor
the derivative is designated as a hedging instrument and, if
substantially retains the risks and rewards of ownership of
so, the nature of the item being hedged.
an asset, are recognised on a straight line basis over the term of the lease in the surplus or deficit. Lease incentives
Derivatives that are not designated as for hedge accounting
received are recognised in the surplus or deficit over the
are classified as held-for-trading financial instruments with
lease term as an integral part of the total lease expense.
fair value gains or losses recognised in the surplus or deficit. Such derivatives may be entered into for risk management
(c) Cash and cash equivalents
purposes, although not formally designated for hedge
accounting.
Cash and cash equivalents include cash on hand, deposits held at call with banks and other short-term, highly liquid investments, with original maturities of three months or
Where a derivative qualifies as a hedge of variability in
less that are readily convertible into known amounts of cash
asset or liability cash flows (cash flow hedge), the effective
and which are subject to an insignificant risk of changes in
part of any gain or loss on the derivative is recognised in
value.
equity while the ineffective part is recognised in the surplus or deficit. Where the hedge of a forecast transaction
(d) Debtors and other receivables
subsequently results in the recognition of a non-financial
Debtors and other receivables are initially measured at
asset or non-financial liability (e.g. where the hedge relates
fair value and subsequently measured at amortised cost
to purchase of an asset in a foreign currency), the amount
using the effective interest method, less any allowance
recognised directly in equity is included in the initial cost
for impairment. Debtors and other receivables issued
of the asset or liability. Otherwise, gains or losses are
with duration less than 12 months are recognised at their
recognised in equity transfer to the surplus or deficit in the
nominal value, unless the effect of discounting is material.
same periods as when the hedged item affects the surplus
Impairment of a receivable is established when there is
or deficit (e.g. when the forecast cost occurs). Both effective
objective evidence that Antarctica New Zealand will not be
and ineffective parts of the hedge are recognised in the
able to collect amounts due according to the original terms
same area of the surplus or deficit as the hedged item.
of the receivable.
Bank term deposits
any cumulative gain or loss existing in equity at that time
Investments in bank term deposits are initially measured at
remains in equity and is recognised when the forecast
the amount invested. After initial recognition, investments
transaction is ultimately recognised in the surplus or deficit.
in bank deposits are measured at amortised cost using
When a forecast transaction is no longer expected to occur,
the effective interest method, less any provision for
the cumulative gain or loss that was reported in equity is
impairment.
transferred to the surplus or deficit.
(f) Joint ventures
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting,
(e) Investments
Transactions in foreign currencies are initially translated
The financial statements include Antarctica New Zealand’s
at the foreign exchange rate at the date of the transaction.
25% interest in the jointly controlled Antarctic Drilling
Foreign exchange gains and losses resulting from the
Project (ANDRILL). Antarctica New Zealand’s share of the
settlement of such transactions and from the translation
assets and liabilities, revenue and expenses, and cash
of exchange rates of monetary assets and liabilities
Annual Report 2015-2016 33
denominated in foreign currencies at each period and are
unexpired period of the lease or the estimated useful lives
recognised in the surplus or deficit, except when deferred
of the improvements, whichever is the shorter.
in equity when hedge accounting is applied. (j) Intangible assets
(h) Property, plant and equipment
Acquired computer software licences are capitalised on the
Property, plant and equipment are shown at cost less any
basis of the costs incurred to acquire and bring to use the
accumulated depreciation and impairment losses, except
specific software.
for land and the art collection, which are shown at cost less
impairment losses.
Intangible assets with finite lives are subsequently recorded at cost less any amortisation and impairment. Amortisation
Where an asset is acquired at no cost or for a nominal
is charged to the surplus or deficit on a straight-line basis
consideration, it is recognised at fair value when control
over the useful life of the asset. Typically the estimated
over the asset is obtained.
useful lives of these assets are as follows:
Capital work in progress is not depreciated. The total cost
Computer Software
The carrying amounts of intangible assets are reviewed
3 to 5 years
of a capital project is transferred to the relevant asset class on its completion and then depreciated.
at least annually to determine if there is any indication
Gains and losses on disposals are determined by comparing
of impairment. Where an asset’s recoverable amount
the proceeds with the carrying amount of the asset. Gains
is less than its carrying amount, it will be reported at
and losses on disposals are included in the surplus or deficit
its recoverable amount and an impairment loss will be
in the period in which the transaction occurs.
recognised. Losses resulting from impairment are reported in the surplus or deficit.
The carrying amounts of property, plant and equipment are reviewed at least annually to determine if there is any
k) Impairment of property, plant, and equipment and intangible assets
indication of impairment. Where an asset’s recoverable amount is less than its carrying amount, it will be reported
Antarctica New Zealand does not hold any cash-generating
at its recoverable amount and an impairment loss will be
assets. Assets are considered cash-generating where their
recognised. Losses resulting from impairment are reported
primary objective is to generate a commercial return.
in the surplus or deficit. (i) Depreciation
Non-cash generating assets
Property, plant, and equipment and intangible assets
Depreciation is charged on a straight-line basis at rates
held at cost that have a finite useful life are reviewed for
calculated to allocate the cost or valuation of an item of
impairment whenever events or changes in circumstances
property, plant and equipment, less any estimated residual
indicate that the carrying amount may not be recoverable.
value, over its estimated useful life. Typically the estimated
An impairment loss is recognised for the amount by which
useful lives of different classes of property, plant and
the asset’s carrying amount exceeds its recoverable service
equipment are as follows:
amount. The recoverable service amount is the higher of an asset’s fair value less costs to sell and value in use.
Buildings
40 years
Clothing
10 years
Value in use is determined using an approach based
Communications equipment
5 to 7 years
on either a depreciated replacement cost approach,
Computer hardware
2 to 4 years
restoration cost approach, or service units approach. The
10 to 15 years
most appropriate approach used to measure value in use
Library collection
20 years
depends on the nature of the impairment and availability
Office equipment
3 to 5 years
Office furniture
3 to 5 years
Leasehold improvements
of information.
If an asset’s carrying amount exceeds it recoverable service
Plant and machinery
10 years
Scott Base fitout
20 years
amount, the asset is regarded as impaired and the carrying
Tents
10 years
amount is written down to the recoverable amount. The
7 years
total impairment loss is recognised in the surplus or deficit.
Vehicles – Christchurch Vehicles – Scott Base
10 years
Wind farm
15 to 50 years
The reversal of an impairment loss is recognised in the surplus or deficit.
Leasehold
34 Antarctica New Zealand
improvements
are
depreciated
over
the
Taxpayers’ Funds
This relates to Antarctica New Zealand’s accumulated
Creditors and other payables are recognised initially at fair value less transaction costs and subsequently measured
surplus or deficit since its formation, adjusted for transfers
at amortised cost using the effective interest rate method.
to/from specific reserves. This also includes Antarctica
Creditors and other payables issued with duration of less
New Zealand’s 25% share of ANDRILL’s joint venture funds.
than 12 months are recognised at their nominal value. (m) Employee entitlements
Other Reserves
This reserve comprises of ANDRILL Project Management
Employee entitlements to be settled within 12 months are
Reserve and is the balance of Crown funding provided to
reported at the amount expected to be paid and include
Antarctica New Zealand for ANDRILL project..
salaries and wages accrued up to balance date, annual leave earned, but not yet taken at each reporting date and
(r) Budget figures
long service leave entitlements.
The budget figures are derived from the Statement of Intent as approved by the Board at the beginning of the
(n) Superannuation schemes
reporting period. The budget figures have been prepared
Obligations for contributions to Kiwisaver and the
in accordance with PBE IPSAS, using accounting policies
Government Superannuation Fund are accounted for
that are consistent with those adopted by Antarctica
as defined contribution superannuation schemes and
New Zealand for the preparation of the financial statements.
recognised as an expense in the surplus or deficit as incurred.
(s) Critical accounting estimates and assumptions
The preparation of financial statements in conformity with
(o) Goods and Services Tax (GST)
PBE IPSAS requires judgements, estimates and assumptions
All items in the financial statements are stated exclusive of
that affect the application of policies and reported amounts
GST, except for receivables and payables, which are stated
of assets and liabilities, revenue and expenses.
on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognised as part of the related asset or
expense.
The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual
results may differ from these estimates.
The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial
position.
The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities within the next reporting period are
discussed below:
The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.
Estimating the useful lives and residual values of property, plant and equipment.
Commitments and contingencies are disclosed exclusive of GST.
At each reporting date, the useful lives and residual values of property, plant and equipment are reviewed. Assessing the
(p) Income tax
appropriateness of useful life and residual value estimates
Antarctica New Zealand is a public authority for the
of property, plant and equipment requires a number of
purposes of income tax legislation and is exempt from
factors to be considered such as the physical condition of
income tax.
the asset, expected period of use of the asset by Antarctica New Zealand, and expected disposal proceeds from the future sale of the asset.
(q) Equity
Equity is measured as the difference between total assets and total liabilities. Equity is disaggregated and classified into the following components:
An incorrect estimate of the useful life or residual value will affect the depreciation expense recognised in the surplus or deficit, and carrying amount of the asset in the statement
■■
Taxpayers’ funds
of financial position. Antarctica New Zealand minimises the
■■
Other Reserves
risk of this estimation uncertainty by:
Annual Report 2015-2016 35
Financial Statements
(l) Creditors and other payables
■■
Physical inspection of assets
(u) Comparatives
■■
Asset replacement programs
■■
Review of second hand market prices for similar
financial statements is amended or accounting policies
assets
are changed voluntarily, comparative figures are re-stated
Analysis of prior asset sales
to ensure consistency with the current period unless it is
■■
When presentation or classification of items in the
impracticable to do so.
Antarctica New Zealand has not made significant changes to past assumptions concerning useful lives and residual
(v) Related parties
values.
Antarctica New Zealand transacts with other Governmentrelated entities on a regular basis, for example the purchase
(t) Critical judgements in applying accounting policies
of postage or electricity. These transactions are conducted
Management has exercised the following critical judgements
on an arms’-length basis. Significant transactions are
in applying accounting policies:
disclosed separately. Transactions that are collectively, but not individually, significant are disclosed in aggregate as
Contributions/Sponsorship received
Antarctica New Zealand must exercise judgement when recognising contributions and sponsorship revenue to determine if conditions of these revenue items have been satisfied. This judgement will be based on the facts and circumstances that are evident for each agreement.
Vince’s cross. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
36 Antarctica New Zealand
transactions from Government-related entities.
for the year ended 30 June 2016
Note
2016 Budget
2016 Actual
2015 Actual
($000)
($000)
($000)
1
15,280
15,510
15,280
Contributions/Sponsorship revenue
64
200
166
Revenue from non-exchange transactions Crown revenue
15,344 15,710 15,446 Revenue from exchange transactions Interest revenue
253
288
479
Other operating revenue
446
393
357
–
64
37
Net gain on sale of property, plant & equipment
9
699 745 873 Total revenue
16,043
16,455
16,319
Personnel costs
4,416
4,251
3,977
Operating expenses
2
7,764
8,158
9,798
Crown capital charge
3
2,700
2,719
2,859
Expenditure
Finance costs
–
53
(13)
2,300
2,413
2,307
17,180
17,594
18,928
(1,137)
(1,139)
(2,609)
2016 Budget
2016 Actual
2015 Actual
($000)
($000)
($000)
Net operating surplus/(loss)
Depreciation and amortisation expense
4 9/10
Total expenditure Net operating surplus/(loss)
5
Explanations of significant variances against budget are detailed in Note 22.
OTHER COMPREHENSIVE REVENUE AND EXPENSES for the year ended 30 June 2016
Note
5
(1,137)
(1,139)
(2,609)
Other comprehensive revenue and expenses
–
–
–
Total comprehensive revenue and expenses for the year
(1,137)
(1,139)
(2,609)
STATEMENT OF CHANGES IN EQUITY for the year ended 30 June 2016
2016 Budget
2016 Actual
2015 Actual
($000)
($000)
($000)
Balance at 1 July
33,811
34,202
36,811
Total comprehensive revenue and expenses
(1,137)
(1,139)
(2,609)
Crown capital contribution
–
–
–
32,674
33,063
34,202
Balance at 30 June
Note
5
The accompanying notes form part of these financial statements. Annual Report 2015-2016 37
Financial Statements
STATEMENT OF COMPREHENSIVE REVENUE AND EXPENSES
STATEMENT OF FINANCIAL POSITION as at 30 June 2016
Note
2016 Budget
2016 Actual
2015 Actual
($000)
($000)
($000)
Equity Taxpayers’ funds
5
32,674
33,063
34,202
Other reserves
5
–
–
–
Total equity
32,674
33,063
34,202
6
3,660
1,495
5,329
Debtors and other receivables from exchange transactions 7
210
355
198
8
–
4,650
4,650
Prepayments
–
70
13
Total current assets
3,870
6,570
10,190
Represented by: Current assets Cash and cash equivalents Investments
Non-current assets Property, plant and equipment
9
29,721
28,421
25,169
Intangible assets
10
264
357
488
Total non-current assets 29,985 28,778 25,657 Current liabilities Creditors and other payables
11
944
1,876
1,353
Employee entitlements
12
237
356
292
Derivative financial instruments
13
–
53
–
Total current liabilities 1,181 2,285 1,645 Net assets
The accompanying notes form part of these financial statements. 38 Antarctica New Zealand
32,674
33,063
34,202
for the year ended 30 June 2016
Note
2016 Budget
2016 Actual
2015 Actual
($000)
($000)
($000)
Cash flows from operating activities Cash was provided from: Receipts from Crown revenue
15,280
15,510
15,280
Receipts from other revenue (exchange transactions)
446
333
451
Receipts from other revenue (non-exchange transactions)
64
200
166
Interest received
253
304
479
Total receipts
16,043
16,347
16,376
Payments to suppliers
(7,784)
(8,505)
(9,967)
Payments to employees
(4,416)
(4,227)
(3,919)
Payments for Crown capital charge
(2,700)
(2,719)
(2,859)
Goods and services tax (net)
–
(123)
106
Total payments
(14,900)
(15,574)
(16,639)
Cash was applied to:
Net cash from operating activities 1,143 773 (263) Cash flows from investing activities Cash was provided from: Receipts from sale of property, plant and equipment
20
87
440
(2,689)
Cash was applied to: Purchase of property, plant and equipment
(5,378)
(4,602)
Purchase of intangible assets
(200)
(92)
(108)
Acquisition of investments
–
–
(4,650)
Net cash from investing activities
(5,558)
(4,607)
(7,007)
Crown capital contribution
–
–
–
Net cash from financing activities
–
–
–
Net increase/(decrease) in cash and cash equivalents
(4,415)
(3,834)
(7,270)
Cash and cash equivalents at the beginning of the period
8,075
5,329
12,599
Cash and cash equivalents at the end of the period
3,660
1,495
5,329
Cash flows from financing activities Cash was provided from:
6
The GST (net) component of operating activities reflects the net GST paid to and received from Inland Revenue. The GST (net) component has been presented on a net basis, as the gross amounts do not provide meaningful information for financial statement purposes.
The accompanying notes form part of these financial statements. Annual Report 2015-2016 39
Financial Statements
STATEMENT OF CASH FLOWS
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2016
Note 1
Crown revenue Antarctica New Zealand has been provided with funding from the Crown for the specific purposes of Antarctica New Zealand as set out in its founding legislation and the scope of the relevant government appropriations. Apart from these restrictions, there are no unfulfilled conditions or contingencies attached to government funding general (2015 - nil).
Note 2
Operating expenses
2016 Actual
2015 Actual
($000)
($000)
Remuneration of auditor – Audit fees for financial statements audit
34
– Audit related fees for assurance and related services
–
33 –
Directors’ remuneration (note 18)
82
80 399
Rental and operating lease costs
413
Helicopter and fixed wing aircraft charter in Antarctica
1,250
896
Fuel consumed in Antarctica
706
680
New Zealand airtraffic and airport charges
473
446
New Zealand Defence Force accommodation and allowances
707
356
Data link between New Zealand and Antarctica
473
435
Food consumed in Antarctica
185
202
Other operating expenses
3,835
6,271
Total operating expenses 8,158 9,798 Explanations of significant variances against budget are detailed in note 22.
Note 3
Crown capital charge Antarctica New Zealand pays a capital charge to the Crown on its taxpayers’ funds as at 30 June and 31 December each year. The capital charge rate for the year ended 30 June 2016 was 8.0% (2015 – 8.0%).
40 Antarctica New Zealand
Finance costs
Note 5
2016 Actual
2015 Actual
($000)
($000)
Financial instruments recognised at fair value
53
(13)
Total finance costs
53 (13)
Equity 2016 Actual
2015 Actual
($000)
($000)
Taxpayers’ funds Balance at 1 July
34,202
35,595
Net surplus/(loss) for the period
(1,139)
(2,609)
Crown capital contribution
–
–
Transfer (to)/from ANDRILL project management reserve
–
1,216
Balance at 30 June 33,063
34,202
Other reserves ANDRILL project management reserve Balance at 1 July
–
1,216
Transfer from/(to) Taxpayers’ funds
–
(1,216)
Balance at 30 June –
–
Total equity at 30 June 33,063
34,202
Taxpayers’ funds at the reporting date include $154,000 (2015 – $182,000), attributable to Antarctica New Zealand’s 25% share of the assets and liabilities of the ANDRILL project (refer note 14). In 2015 the $1,216,000 ANDRILL Project Management Reserve was transferred to general Taxpayer’s funds. The Minister of Foreign Affairs approved the transfer of the ANDRILL Project Management funds, plus proceeds from future asset realisations from the ANDRILL joint venture, to fund future projects and other high quality science programmes in Antarctica.
Note 6
Cash and cash equivalents 2016 Actual
($000)
2015 Actual ($000)
Cash on hand and at bank
995 1,479
Cash equivalents – term deposits less than 3 months
500
Total cash and cash equivalents
3,850
1,495 5,329
The carrying value of short term deposits with maturity dates of three months or less approximates their fair value. The weighted average effective interest rate for term deposits is 3.05% (2015 – 4.09%).
Annual Report 2015-2016 41
Financial Statements
Note 4
Note 7
Debtors and other receivables
2016 Actual ($000)
2015 Actual ($000)
Debtors and other receivables
334
less provision for impairment
–
161 –
Term deposit interest
21
37
Total debtors and other receivables 355 198 The carrying value of receivables approximates their fair value. The carrying amount of receivables that would otherwise be past due, but not impaired, whose terms have been renegotiated is nil (2015 - nil). As at 30 June 2016 and 2015, all overdue receivables have been assessed for impairment and appropriate provisions applied, as detailed below:
2016
Gross Impairment
($000)
Not past due
2015
Actual Actual ($000)
Net
Gross Impairment
($000)
($000)
($000)
Net ($000)
334
–
334
156
–
156
Past due 1 – 30 days
–
–
–
–
–
–
Past due 31 – 60 days
–
–
–
–
–
–
Past due 61 – 90 days
–
–
–
–
–
–
Past due > 91 days
–
–
–
5
–
5
Total
334
–
334
161
–
161
The provision for impairment has been calculated based on expected losses for Antarctica New Zealand’s pool of debtors. Expected losses have been determined based on an analysis of Antarctica New Zealand’s losses in previous periods, and a review of specific debtors. All amounts past due at each reporting date have since been received in full.
Note 8
Investments
2016 Actual ($000)
2015 Actual ($000)
Current portion of term deposits
4,650
4,650
Total Investments
4,650
4,650
The carrying value of term deposits with maturity dates less than 12 months approximates their fair value. The weighted average effective interest rate for term deposits is 3.14% (2015 – 4.15%).
42 Antarctica New Zealand
Notes to and forming part of the Financial Statements continued
Property, plant and equipment Movement for each class of property, plant and equipment are as follows: 2016 Cost Accumulated depreciation and impairment losses
Carrying amount
Balance at Additions Disposals Balance at Balance at Depreciation Eliminated Impairment Balance at at 30 June 1 July 2015 30 June 2016 1 July 2015 expense on disposal losses 30 June 2016 2016
($000)
Buildings Scott Base
8,075
–
–
–
Leasehold improvements
653
7
Communications equipment
427
Land
Plant and machinery Wind farm
($000)
($000)
($000)
($000)
($000)
($000)
($000)
($000)
($000)
–
8,075
3,395
294
–
–
–
–
–
–
–
3,689
4,386
–
–
(18)
642
274
67
(18)
–
–
323
319
5
(31)
401
367
20
(31)
–
356
45
3,839
563
(266)
4,136
3,318
12,448
–
–
12,448
3,236
141
(266)
–
3,193
943
616
–
–
3,852
8,596 1,733
Vehicles
4,963
1
(246)
4,718
2,953
278
(246)
–
2,985
Computer hardware
1,484
281
(322)
1,443
1,054
198
(322)
–
930
513
Scott Base fitout
9,221
1,940
–
11,161
4,517
430
–
–
4,947
6,214
Office furniture
156
–
(83)
73
152
2
(83)
–
71
2
Office equipment
145
4
(35)
114
122
12
(35)
–
99
15
1,105
6
–
1,111
581
109
–
–
690
421 99
Clothing Tents
396
56
–
452
335
18
–
–
353
Library collection
135
–
–
135
130
5
–
–
135
–
Art collection
350
–
–
350
–
–
–
–
–
350
2,206
2,579
–
4,785
–
–
–
–
–
4,785
Work in progress Total
45,603
5,442
(1,001)
50,044
20,434
2,190
(1,001)
–
21,623
28,421
In 2016, Antarctica New Zealand disposed of a Caterpillar loader, a Toyota Hilux and a Toyota Landcruiser (vehicles), making a net gain on sale totalling $64,000. In 2015, Antarctica New Zealand disposed of two Hägglunds (vehicles) which were replaced, making a net gain on sale totalling $37,000. 2015
Cost Accumulated depreciation and impairment losses Carrying amount Balance at Additions Disposals Balance at Balance at Depreciation Eliminated Impairment Balance at at 30 June 1 July 2014 30 June 2015 1 July 2014 expense on disposal losses 30 June 2015 2015 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Buildings Scott Base
8,075
–
–
8,075
3,101
294
–
–
3,395
4,680
–
–
–
–
–
–
–
–
–
–
Leasehold improvements
619
34
–
653
205
69
–
–
274
379
Communications equipment
405
22
–
427
347
20
–
–
367
60
3,780
59
–
3,839
3,185
133
–
–
3,318
521
Land
Plant and machinery Wind farm
12,448
–
–
12,448
2,620
616
–
–
3,236
9,212
4,564
1,002
(603)
4,963
3,308
242
(597)
–
2,953
2,010
Computer hardware
1,262
222
–
1,484
874
180
–
–
1,054
430
Scott Base fitout
8,888
333
–
9,221
4,148
369
–
–
4,517
4,704
156
–
–
156
150
2
–
–
152
4
Vehicles
Office furniture Office equipment Clothing
145
–
–
145
109
13
–
–
122
23
1,020
85
–
1,105
475
106
–
–
581
524 61
Tents
396
–
–
396
318
17
–
–
335
Library collection
135
–
–
135
123
7
–
–
130
5
Art collection
350
–
–
350
–
–
–
–
–
350
1,147
1,059
–
2,206
–
–
–
–
–
2,206
Work in progress Total
43,390
2,816
(603)
45,603
18,963
2,068
(597)
–
20,434
25,169
Antarctica New Zealand owns buildings at Scott Base in Antarctica which are restricted for Government use. Legal title to the wind farm transferred from Meridian Energy Limited to Antarctica New Zealand upon final payment of the finance lease in May 2013. Antarctica New Zealand’s property, plant and equipment are not pledged as security for liabilities.
Annual Report 2015-2016 43
Financial Statements
Note 9
Note 10
Intangible assets Movement for each class of intangible asset is as follows: 2016 Cost Accumulated amortisation and impairment losses
Carrying amount
Balance at Additions Disposals Balance at Balance at Amortisation Eliminated Impairment Balance at at 30 June 1 July 2015 30 June 2016 1 July 2015 expense on disposal losses 30 June 2016 2016 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
Acquired software Work in progress
1,859
60
(143)
1,776
1,371
223
(143)
–
1,451
325
–
32
–
32
–
–
–
–
–
32
Total
1,859
92
(143)
1,808
1,371
223
(143)
–
1,451
357
2015
Cost Accumulated amortisation and impairment losses Carrying amount
Acquired software
Balance at Additions Disposals Balance at Balance at Amortisation Eliminated Impairment Balance at at 30 June 1 July 2014 30 June 2015 1 July 2014 expense on disposal losses 30 June 2015 2015 ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000) ($000)
1,751
108
–
1,859
1,132
239
–
–
1,371
488
–
–
–
–
–
–
–
–
–
–
Work in progress Total
1,751
108
–
1,859
1,132
239
–
–
1,371
488
There are no restrictions over the title of Antarctica New Zealand’s intangible assets, nor are any intangible assets pledged as security for liabilities.
Note 11
Creditors and other payables
2016 Actual ($000)
2015 Actual ($000)
Creditors
1,055
792
Revenue in advance
-
70
Accrued expenses
821
491
Total creditors and other payables 1,876 1,353 Creditors and other payables are non-interest bearing and are normally settled on terms of less than 60 days. As such, the carrying value of creditors and other payables approximates their fair value.
44 Antarctica New Zealand
Note 12
Employee entitlements
2016 Actual ($000)
2015 Actual ($000)
Accrued salaries and wages
110
79
Long service leave
-
-
Annual leave 246 213 Total employee entitlements 356 292
Note 13
Derivative financial instruments The notional principle amounts of outstanding forward exchange contracts at 30 June 2016 was EUR 210,030 (2015 - nil). The fair value of forward exchange contracts has been determined using a discounted cash flows valuation.
Note 14
Interest in joint venture Included in the financial statements are the following items that represent Antarctica New Zealand's 25% interest in the
assets and liabilities of the Antarctic Drilling Project (ANDRILL).
2016 Actual ($000)
2015 Actual ($000)
Current assets Cash and cash equivalents
178
184
Total current assets 178 184 Current liabilities Creditors and other payables
(24)
(2)
Total liabilities (24) (2) Net assets 154 182 Revenue 5 6 Expenditure
(33)
(2)
Operating deficit (28) 4 The financial statements of the ANDRILL joint venture for the year ended 30 June 2016 have been audited by Audit New Zealand on behalf of the Auditor General.
Note 15
Subsequent events No events after the reporting date have come to the attention of Antarctica New Zealand that are of a material nature as to require adjustment of the amounts contained in the financial statements or separate note disclosure.
Annual Report 2015-2016 45
Financial Statements
Notes to and forming part of the Financial Statements continued
Note 16
Related party transactions and key management personnel Significant transactions with government-related entities Antarctica New Zealand is a wholly owned entity of the Crown. The Government influences the roles of Antarctica New Zealand as well as being its major source of revenue (2016 - $15,510,000 - refer Note 1) (2015 - $15,280,000). In 2015, an agreement for $2,000,000 between Antarctica New Zealand and NIWA Vessel Management Limited was entered into for the New Zealand – Australian Antarctic Ecosystems Voyage in the Southern Ocean in February 2015. Collectively, but not individually, significant, transactions with government-related entities In conducting its activities, Antarctica New Zealand is required to pay various taxes and levies (such as GST, FBT, PAYE and ACC levies) to the Crown and entities related to the Crown. The payment of these taxes and levies, other than income tax, is based on standard terms and conditions that apply to all tax and levy payers. Antarctica New Zealand is exempt from paying income tax. Antarctica New Zealand also purchases goods and services from entities controlled, significantly influenced or jointly controlled by the Crown. Purchases from these government-related entities for the year ended 30 June 2016 totalled $1,437,336 (2015 - $890,695). These purchases are entered into on an arm’s length basis and include marginal costs to the New Zealand Defence Force for defence force personnel operating in Antarctica, purchase of electricity from Meridian Energy Ltd, air travel from Air New Zealand, air traffic control services from Airways, workplace injury cover from the Accident Compensation Corporation and postal services from New Zealand Post. Brian Roche is the Chief Executive of the New Zealand Post Group. Significant transactions with non-government-related entities Antarctica New Zealand also transacts with other overseas Government agencies in order to operate cost effectively in Antarctica. These transactions are not considered related party transactions. Antarctica New Zealand holds a 25% share in the ANDRILL joint venture and is the project operator. It is responsible for providing project management services for ANDRILL including day-to-day project administration and financial management of ANDRILL funds.
During the year the following transactions were carried out with ANDRILL. 2016 Actual ($000) Goods and services purchased and recharged to ANDRILL at cost
12
2015 Actual ($000) 9
There were no related party transactions between Antarctica New Zealand and Ministers of the Crown. Key management personnel compensation
2016 Actual ($000)
2015 Actual ($000)
Board Members Remuneration
82
80
Full-time equivalent members
1.03
0.90
Leadership Team Remuneration
1,093
957
Full-time equivalent members
7.00
5.25
Total key management personnel remuneration
1,175
1,037
8.03
6.15
Total full time equivalent personnel
Key management personnel include all Board Members, the Chief Executive, and members of the Management Team.
46 Antarctica New Zealand
Note 17
Employees’ remuneration During the year the following number of employees received remuneration of $100,000 or more:
2016
Actual Actual
Remuneration band
No. of employees
$100,000-$109,999
1
$110,000-$119,999
2
2015 No. of employees 2
$120,000-$129,999 $130,000-$139,999
Financial Statements
Notes to and forming part of the Financial Statements continued
1
2
$140,000-$149,999 $150,000-$159,999
1
$160,000-$169,999
1
1
$170,000-$179,999 $180,000-$189,999
1
$190,000-$199,999
1
$310,000-$319,999
$200,000-$309,999
1*
$320,000-$329,999
1*
* The Chief Executive’s remuneration is in the $320,000 - $329,999 band (2015 $310,000 - $319,999). Compensation payments of $60,783 (2015 – $33,750) relating to cessation of employment were made to three persons (2015 – one person) ceasing to be an employee during the financial year.
Note 18
Directors’ remuneration Board Members earned the following fees during the year:
2016
Actual Actual
Board Member
$
2015 $
Mr Brian Roche
17,000
14,661
Sir Robert Fenwick
9,167
15,681
Dr. Helen Anderson
5,833
–
Professor Carolyn Burns
4,167
10,000 10,000
Mr Rob Fyfe
10,000
Ms Sharon Hunter
5,833
–
Mr Phillip Melchior
10,000
10,000
Mr Rob Morrison
5,833
–
Mr Tony O’Brien
10,000
10,000
Mr Tenby Powell
4,167
10,000
Total Board Member remuneration
82,000
80,342
Mr Brian Roche was appointed to the Board on 31 August 2014 and was acting Chairman from 1 November 2014 to 10 May 2015 while Sir Robert Fenwick was on leave as Chairman. Mr Roche was subsequently appointed Chairman following Sir Robert Fenwick’s retirement from the Board on 30 November 2015. Dr. Helen Anderson, Ms Sharon Hunter and Mr Rob Morrison were appointed to the Board on 1 December 2015. Professor Carolyn Burns and Mr Tenby Powell retired from the Board on 30 November 2015. No Board members received compensation or other benefits in relation to cessation (2015 - nil).
Annual Report 2015-2016 47
Note 19
Financial instruments Nature of activities and management policies with respect to financial instruments. 1 Foreign exchange risk Antarctica New Zealand undertakes transactions denominated in foreign currencies. As a result of these activities exposures in foreign currencies arise. It is the policy of Antarctica New Zealand to hedge significant foreign currency risks and it uses forward and spot foreign exchange contracts to manage this exposure. In August 2015 Antarctica New Zealand entered into a forward exchange contract for US$450,000 and US$110,000 to hedge the cost of the 2015/2016 season fuel. The contracts matured on 3 May 2016 and 4 May 2016 respectively. The maturity dates were subsequently extended to 14 June 2016 and 15 June 2016 respectively. In September 2015, Antarctica New Zealand entered into a forward exchange contract for EUR213,030 due on 20 July 2016 to hedge the purchase of two Hagglund vehicles for Scott Base. 2 Credit risk In the normal course of business Antarctica New Zealand incurs credit risk from trade debtors and financial institutions. There are no significant concentrations of credit risk from trade debtors and exposures to them are monitored on a regular basis. Antarctica New Zealand places its cash and short term investments with high quality financial institutions which limits the amount of credit exposure. No collateral or security to support financial instruments is required due to the quality of the financial institutions dealt with. It is also Antarctica New Zealand’s policy to limit the amount of credit exposure to any one institution. 3 Interest rate risk Interest rate risk is the risk that Antarctica New Zealand’s return from a financial instrument will fluctuate due to changes in market interest rates. Antarctica New Zealand’s interest rate risk is limited to its bank deposits which are held on a short term basis, thus minimising any interest rate risk. 4 Liquidity risk Antarctica New Zealand structures its cash flows from the Crown in order to meet anticipated commitments. Antarctica New Zealand’s policy is to maintain minimum liquid funds of $1,500,000 at all times. Financial liabilities consist of creditors and other payables of which maturity dates are less than 60 days.
The most magical dinner view. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
48 Antarctica New Zealand
Note 20
Commitments
2016 Actual
2015 Actual
($000)
($000)
Capital commitments Other property, plant and equipment
1,076
3,416
Total capital commitments
1,076
3,416
Non-cancellable operating lease commitments Non-cancellable operating lease rentals are payable as follows: Less than one year
363
363
One to two years
76
363
Two to five years
–
75
Over five years
–
–
Total non-cancellable operating lease commitments
439
801
The non-cancellable operating lease commitment relates to office space in Christchurch. The lease expires in September 2017.
Note 21
Contingent assets and liabilities Antarctica New Zealand and the Crown have a liability for site restoration costs at Scott Base should New Zealand withdraw from the Antarctic programme. Other than this item there are no other contingent assets or liabilities that Antarctica New Zealand is aware of (2015 - Nil).
Note 22
Explanation of significant variances against budget Explanations for significant variances from Antarctica New Zealand’s budgeted figures in the Statement of Performance Expectations are as follows: Statement of comprehensive revenue and expenses Revenue from non-exchange transactions Revenue is higher than budget by $366,000 due to two unbudgeted items. $230,000 was received from MFAT to reimburse international airfares purchased from Air New Zealand, as contribution to the US/NZ joint logistics pool. A lotteries grant of $136,000 was received as a contribution to the cost of digitising Antarctica New Zealand’s photograph collection (ADAM Project). Operating expenses Operating expenses are higher than budget by $394,000. This is due to the $230,000 contribution to the US/NZ joint logistics pool for international return tickets and an additional $136,000 expended on the ADAM Project. Both these sums are noted as favourable variances in Revenue above. The balance of the variance is made up of a number of smaller variances. Depreciation and amortisation expenses These expenses are $113,000 above budget. This is primarily due to the capitalisation of Stage 1 of the Hillary Field Centre refurbishment project resulting in a higher depreciation charge.
Annual Report 2015-2016 49
Financial Statements
Notes to and forming part of the Financial Statements continued
Statement of financial position Cash and cash equivalents Cash and cash equivalents are lower than budget by $2,165,000 due to the recategorisation of current portion of term deposits. See also Investments below. Investments The current portion of term deposits was not budgeted and is therefore higher than budget by $4,650,000. Combined Investments and Cash & Cash Equivalents are $2,485,000 higher than budget. This increase is mainly due to the variance noted below in Property, Plant and Equipment of $1,300,000 and the deferred payment of $932,000 noted in Creditors below. Property, plant and equipment (PPE) PPE is under budget by $1,300,000. The variance is made up of the following items. - As noted in Antarctica New Zealand’s 2014/15 annual report (Note 23 page 46) PPE was under budget by $3,507,000. The timing differences referred to in that note resulted in the 2015/16 opening budget for PPE being higher than the actual opening. This has contributed to a variance of $1,024,000 - The initial capital plan included a reverse osmosis water system upgrade and seawater reticulation projects totalling $619,000 which have been deferred pending a review of the Scott Base Masterplan project - Offsetting the two variances above, the Hillary Field Centre refurbishment project is ahead of the 30 June 2016 budget by $397,000. The project spans three financial years and is on-track against budget milestones Creditors and other payables Creditors and other payables are over budget by $932,000. This is due to an investment in a Deep Field Traverse capability with deferred terms of payment. Statement of cash flows Receipts from Crown revenue Receipts from Crown revenue are higher than budget $230,000 due to additional receipt from MFAT as referred to above. Receipts from other revenue (non-exchange) Receipts from other revenue (non-exchange) are over budget by $136,000 due to the additional receipt of funds for the ADAM Project as referred to above. Payments to suppliers Payments to suppliers is over budget by $721,000 primarily due to additional funds expended on the NZ/US joint logistics pool international air tickets and the ADAM Project, with the balance applied to trade creditors. Purchase of property, plant and equipment Purchase of property, plant and equipment is under budget by $776,000 due to the deferral of the reverse osmosis water system upgrade and seawater reticulation projects as noted in PPE above.
50 Antarctica New Zealand
Dry Valleys. Photo by Stu Robertson. © Peace in 10,000 Hands, 2014/15.
Annual Report 2015-2016 51
The Scott Base summer team 2015/16. Photo by Anthony Powell. © Antarctica New Zealand Pictorial Collection, 2015/16.
Directory Directors
Mr Brian Roche
Chief Executive Mr Peter Beggs
Auditors Audit New Zealand Solicitors
Corporate Office International Antarctic
Social Media
Chapman Tripp
Centre
Facebook.com/Antarctica.New.Zealand
38 Orchard Road
Twitter.com/AntarcticaNZ
Private Bag 4745
YouTube.com/AntarcticaNewZealand
Westpac Banking
Christchurch
Instagram.com/Antarctica.NZ
Corporation
New Zealand 8140 Phone +64 3 358 0200 Fax +64 3 358 0211 52 Antarctica New Zealand
www.antarcticanz.govt.nz www.adam.antarcticanz.govt.nz
(Chairman)
Mr Rob Fyfe Mr Phillip Melchior Mr Tony O’Brien Ms Sharon Hunter Dr. Helen Anderson Mr Rob Morrison
Websites
Bankers
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