Workbridge · The Role of the Workbridge Council is one of Conscience, Community, Advocacy, Networking, Perspective, and Guidance. In this sense the Council has the responsibility

Workbridge Where abilities equal employment

WORKBRIDGE INC.

ANNUAL REPORT

For the year ended 30 lune 2019

Contents Vision, Mission, Values

Council and Board of Management

Council President's Report

Board Chairperson's Report

Chief Executive's Report

Statement of Comprehensive Revenue and Expenditure

Statement of Changes in Net Assets

Statement of Financial Position

Statement of Cash Flows

Reconciliation of Operating Cash Flows

Notes to the Financial Statements

Notes to the Accounts

Training Support Financial Statement

Self-Start Financial Statement

Job Support Financial Statement

Auditors' Report

Page 1

2-4

5-7

8-10

11-14

15

16

17

18

19

20-28

29-35

36

37

38

39-40

Vision, Mission, Values

Vision

Every person with a disability has the same value as any other person and will

contribute positively in the workplace.

Mission

To enable people with disabilities to participate and experience equal opportunities

in the labour market.

Values

• Honesty and Integrity• Respect• Commitment• Privacy and dignity• Cultural diversity• Professionalism• Opportunity for all• Collaboration

Pagel

Workbridge Council and Board of Management

Workbridge Constitution

The Workbridge Constitution was adopted at a special General Meeting held in

Wellington on 18 June 2001.

Governance Structure

The Governance Structure is two-tiered. The Workbridge Council is responsible for

setting the overall direction for the organisation and the appointment of the Board.

The Board is responsible for the governance of the organisation and the

appointment of the Chief Executive Officer.

Council Members

President:

Corporate Members:

Barbara Burton

Gaye Austin

Paula Waby

Stevie Stevens

Tina Mataiti

Ben Peterson

Debbie Ward

Michael Aldridge

Gaye Austin

Business NZ Representative Appointed 28 September 2005

Deaf Aotearoa NZ Representative Appointed 29 January 2014

Blind Citizens NZ Representative Appointed 12 October 2015 Resigned 27 April 2018 Reappointed 2 November 2018

Kapo Maori Aotearoa NZ Inc Representative Appointed 2 February 2016 Resigned 8 December 2018

Vaka Tautua Ltd Representative Appointed 13 October 2016 Resigned 31 October 2018

NZ Council of Trade Unions Representative Appointed 17 December 2017 Resigned 23 January 2019

Disabled Persons Assembly (DPA) Representative Appointed 6 March 2018

People First NZ Representative Appointed 1 July 2018

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Suzy Stevens PeerZone Ltd Representative Appointed 31 October 2018 Resigned 31 May 2019

Lance Girling-Butcher Kapa Maori Aotearoa NZ Inc Representative Appointed 8 December 2018

Jacinta Tevaga Vaka Tautua Ltd Representative Appointed 4 March 2019

Kim Simmonds NZ Council of Trade Unions Representative Appointed 26 March 2018

Lisa Archibald PeerZone Ltd Representative Appointed 12 June 2019

Board of Management

David Wright (Chair)

Gail Munro

Paul Sullivan

David Shearer

Pam MacNeill

Heather Browning

Kerry Ludlam

Tuhi Leef

Derek Gill

Auditors

Appointed 26 October 2017

Appointed 1 November 2010 Retired 31 October 2018

Appointed 28 August 2013

Appointed 1 August 2014

Appointed 22 September 2014





Crowe Horwath New Zealand Audit Partnership

Solicitors

Quigg Partners

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Chief Executive Officer

Jonathan Mosen

Nationa I Office

Level 4, Dell EMC House 5 Willeston Street PO Box 2560 Wellington 6140

Telephone: Facsimile: Website:

Appointed 4 June 2019

04 913-6422 0800 080-715 www.workbridge.co.nz

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Council President's Report

Tena koutou katoa

It is my pleasure to present this report to you on behalf of the Workbridge Council.

'You can have all the strategy in the world, if you don't have the right culture, you're dead.' (source unknown).

During the second half of the year Workbridge commenced development of a new Strategic Plan, so the above quote is timely to remind ourselves of the importance of ensuring our organisation has a culture that is the right one for the people we work with and for.

The Role of the Workbridge Council is one of Conscience, Community, Advocacy, Networking, Perspective, and Guidance. In this sense the Council has the responsibility to ensure that Workbridge as an organisation has a culture that conforms with the NZ Disability Strategy. That is, 'NZ is a non-disabling society, a place where disabled people have an equal opportunity to achieve their goals and aspirations, all of NZ works together'.

Employment for disabled people is often limited by opportunity and people's attitudes rather than disability. Although one in five working age people in New Zealand have some form of disability, most have little or no barrier to working in some kind of paid employment, given support. At Workbridge I am proud to be a part of an organisation that places a focus on ensuring jobseekers are entering into employment opportunities that are meaningful to them and not just a tick in the box for the organisation. That we are promoting a culture that focuses on a person's abilities.

This year has been a year of changes. We have entered a new performancebased contract environment. We celebrate having two long-term contracts in place with MSD and the opportunity to take things up to the next level.

We are ensuring Workbridge is truly walking the talk by developing and putting in place a 100% Accessibility Policy, and have undertaken a full organisational accessibility audit which ensues we are developing the most accessible experience available. We are promoting a culture of inclusiveness.

There has been continuing expansion and development in the area of technology, including facilitating remote teams and soon there will be remote jobseeker seminars. These areas will have a huge flow on effect to both the organisation and the jobseekers, including operational efficiencies, the ability to remotely manage enrolments, and other processes.

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A Meta Policy was developed offering greater clarity of the roles of the Council, Board and Management, and more consistency in the approach to developing policies and procedures.

The long overdue development of a Maori Strategy begun, ensuring we develop and practise a culture of inclusiveness and engage more deeply with the Maori community.

On the 31st of March we farewelled CEO Grant Cleland after nearly ten years. We wish Grant every success as he re-establishes himself in Christchurch. In June our new CEO Jonathan Mosen was welcomed. I would once again like to thank Pam MacNeill for the fantastic job she did in her two months as interim CEO.

One of the first things Jonathan did upon commencing his role was starting the process of developing a new strategic plan that will clarify our core businesses, how it should be developed to optimise our services, capture longer term issues, opportunities, and diversifying revenue sources. Jonathan will be ensuring that he involves as many people as possible within the many areas of the Workbridge organisation, and has begun by constantly asking the questions, 'What are we doing well and what can we do better?', thereby, promoting a culture in which everyone feels valued. Council are very excited to have Jonathan at such an influential level who lives and walks disability. My hopes are that his vision for the new strategic

plan and empathy through lived experience, will increase Workbridge's profile as a professional recruitment organisation in which people know they will be treated with dignity, respect and valued.

This year Council welcomed (and farewelled) Paula Waby (Blind Citizens NZ), Lance Girling-Butcher (Kapo Maori), Jacinta Tevaga (Vaka Tautau) and Lisa Archibald (PeerZone); and farewelled Stevie Stevens (Kapa Maori), Suzy Stevens (PeerZone), and Ben Paterson (NZCTU). Council has a wide diversity in skill mix and as I step down as president, I know I do so with Council in a very good place within the organisation. We have a respected and valued role and work closely with the Board and CEO.

Let us continue to celebrate the success stories at Workbridge. The reason why we are here. The connection of 36,857 New Zealanders with health conditions or disabilities over the past ten years with employers.

I would like to thank the many people involved in making Workbridge the success it continues to be. Thank you to the Council for your passion and commitment in all you do to support Workbridge's aims and values, for the time you volunteer to attend Council meetings and your support. Thank you to Jonathan and the Senior Management Team and all the Workbridge employees, it has been a huge year with many challenges and changes. Thank you to Nigel, National Administrator extraordinaire for your efficiency and wisdom in the secretarial

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and administrative duties that you do, that keep the Council coming together so smoothly. Thank you to the Workbridge Board. Thank you for your time, dedication and loyalty in ensuring Workbridge stays resilient and viable.

So, it is farewell from me as I hand over to a new Council President. It has been an honour and real privilege to serve on the Council as the Deaf Aotearoa representative for the past six years, with the last two years as Council President.

And some final words by Helen Henderson (info.medisked.com) "Inclusion

works to the advantage of everyone. We all have things to learn and we all have something to teach."

Nga mihi

Gaye Austin Workbridge Council President

Page7

Board Chairperson's Report

The financial year just ended has been a momentous year of change for

Workbridge.

After a period of short-term contracts and the uncertainty that went with

them, we were delighted to secure a five-year contract with the Ministry of

Social Development (MSD) for the ongoing provision of employment

services.

Having led our organisation through the process of achieving this outcome,

Grant Cleland felt that the beginning of a new MSD contract was a good time

to step down as Chief Executive of Workbridge, a position he held for 10

years. The Board is grateful for Grant's dedicated service to the organisation,

his professionalism in leading our team and his leadership within the sector

as a whole.

Our new MSD contract has presented Workbridge with new opportunities and

challenges. Rather than receiving a lump sum for the delivery of agreed

services, we are now remunerated based on the number of jobseekers we

enrol, how many we place into work, and how long they stay in work.

The more commercial nature of this contract, and our need to deliver

outstanding customer service for jobseekers and employers alike, were

uppermost in the Board's mind when we began the recruitment process for a

new Chief Executive. After an extensive search and rigorous recruitment

process, the Board appointed Jonathan Mosen. Jonathan has experience in

the not-for-profit sector, and in recent years has held roles in several

commercial multinational organisations. He has strong skills in marketing,

communications and information technology which we believe will be

valuable to the organisation at this time of change.

I wish to thank Pam MacNeill for stepping in as Acting Chief Executive while

the Board was completing the recruitment process.

Jonathan is our second consecutive Chief Executive with a disability. The

Board believes that Workbridge and other organisations in the sector have a

responsibility where possible to lead by example. We know that

misperceptions about disability are one of the biggest barriers our

employment consultants face when they seek to assist disabled people to

find work. Jonathan and the many others with disabilities Workbridge

employs demonstrate every day that Workbridge walks the talk.

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While we welcome the challenges of the new MSD contract and look forward

to delivering great outcomes for disabled New Zealanders, we're aware that

the outcomes being purchased by MSD are very specific. Funding in the

disability sector tends to be siloed. This can result in our team devising a

programme they believe will result in improvements to the dire

unemployment level of disabled people, only to experience difficulty gaining

agreement from Government about which bucket of money should fund it.

We face similar challenges regarding our administration of Support Funds,

which provide assistance to disabled people in training or employment. A

year into our three-year contract with MSD to administer these funds, some

of them have been allocated to Mana Whaikaha in the Midcentral region as

part of the disability transformation pilot, and they are seeking to contract

with us to administer their portion of the funds. While we support the

objectives of Enabling Good Lives, this has added administrative complexity

and uncertainty for us without any tangible benefit for the people we serve.

We are encouraged by two initiatives that may improve the public policy

environment. First, the Government has announced reforms to the State

Sector that seek to promote a more holistic, people-focussed view of public

policy, rather than a departmentally focussed approach. We hope that this

will allow some of our unfunded initiatives that fall between the cracks to

receive funding.

Second, the Board has been of the view for some time that a disability

employment strategy led by Government is appropriate. As a society, we

need to acknowledge that the unemployment numbers of disabled people

are far too high, and there needs to be a concerted New Zealand-wide effort

to improve them. We are therefore pleased to note the Government's

announcement of a forthcoming Employment Action Plan for disabled people,

led by the Minister of Employment. As a trusted organisation with years of

experience assisting disabled people into work, we look forward to playing a

key role in that process.

Significant change is also happening at the governance level of the

organisation. The Workbridge Council will soon have a new Chair, as Gaye

Austin will be leaving the Council at the end of her term. I have enjoyed

working closely with Gaye and thank her for her dedicated and effective

leadership.

Tuhi Leef and Paul Sullivan are also leaving the Board this year, Paul due to

the term limits of our Constitution and Tuhi due to increasing work

commitments.

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This is also the end of my time on the Board. I wish the new directors, and

whomever the Board appoints as its new chair, well. I feel confident that the

next Annual Report will be able to reflect a year of significant delivery and

transformation for Workbridge. The organisation is in good heart and is keen

to be bold and innovative. I look forward to watching that innovation from a

distance.

My thanks to the Workbridge staff for the work they do, and to my

colleagues on the Board for their support.

David Wright

Workbridge Board of Management Chair

PagelO

Chief Executive's Report

Tena Koutou Katoa

It is a pleasure and privilege to bring you my first report as Workbridge's

Chief Executive.

Having commenced in the role on 4 June 2019, I was not Chief Executive

during most of this reporting period. I therefore wish to begin by

acknowledging and thanking my predecessor, Grant Cleland, not just for his

work during much of the year covered by this Report but also for his 10

years of service to Workbridge. His leadership and dedication have made a

significant difference to the lives of many disabled New Zealanders.

I left the not-for-profit sector 16 years ago to work in the commercial world,

much of that work for offshore organisations. Workbridge was the perfect fit

for me to return to the disability sector. At the heart of my personal values is

a passionate belief that minorities and disadvantaged groups tend to achieve

the best outcomes when they're able to take control of their own destinies.

It's heartening to see an increasing acceptance of this view in public policy.

This belief is also at the very core of what we do at Workbridge, starting with

our Constitution which places supreme governing authority in our Council,

made up predominantly of disabled people. I view our kaupapa of being a

truly disability-led organisation as an increasingly relevant competitive

advantage.

A job equates to mana, social and economic independence. What we do

every day is incredibly impactful on the people we work with, and helps

create a fairer, more inclusive New Zealand.

Workbridge now operates in a competitive environment. Disabled people and

employers have choices. We welcome the challenge. We'll meet it by

continuing to listen, innovate and deliver outstanding services for all our

customers.

We achieve what we do because we pride ourselves on building good

partnerships, and we want to do even better. Our partnerships with

jobseekers are based on unwavering belief that with mutual effort, a

jobseeker can gain meaningful employment.

We build partnerships with employers to help them understand that it just

makes business sense to focus on everyone's capabilities. Employing

disabled people and those with an injury or illness isn't risky for the bottom

line or unsafe, quite the opposite. Having a diverse workforce has many

benefits and opens up a pool of talent that is brimming with potential and

often overlooked.

Pagell

We value the partnerships we enjoy with consumer and provider voices

across the disability sector.

Finally, we value partnerships with Government, whether they be contractual

relationships through which we deliver quality outcomes or the input we

have into public policy formulation when given the opportunity. I believe our

disability-driven ethos lends our public policy advice greater credibility and

relevance.

It is in that spirit of partnership that with the Board's encouragement and

support, I have been spending time meeting with all our staff across the

country, as well as other valued partners. As I write, that process is ongoing.

While I'm mindful that Workbridge has already been through a period of

reflection, uncertainty and capacity-building, I believe that the beginning of

a five-year contract with the Ministry of Social Development (MSD)

coinciding with the beginning of my tenure as Chief Executive is an

appropriate time to complete a new strategic planning process. The Board

approved this process at its June 2019 meeting.

In 2018-19, Workbridge achieved these key outcomes:

• 3,066 enrolments

• 1,487 placements

• Over 700 more placements that could not be counted against our MSD

placement target

• Our placement percentage of 49% was above the level in our MSD

contract• 52% of those placed into employment were still employed 12 months

a�er first starting work, in either their first or a subsequent placement.

We've done well, but we know there is ample opportunity for growth.

As recommended by the Martin Jenkins report, we invested considerably in

the capacity of the organisation during the reporting period. We've begun a

methodical and sweeping update of our information technology, supporting

more of it in-house. This includes beginning work on a new customer

relationship management (CRM) system.

The success of everything we do should be measured ultimately by the

impact on our customers. When we equip our team with the best tools that

assist them to do their work efficiently, our customers benefit. What's more,

preparing to adopt a new CRM is the beginning of a journey that will give our

jobseekers more choice in how they receive services from us. We are well on

track to delivering world-class services via a web portal and smartphone

app. We've continued to roll out our Remote Service Team, so customers

can engage with us over the phone if they wish. These changes in no way

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reflect a decrease in the value we place on face-to-face interaction.

However, matters of accessibility and personal preference mean that more

people expect to be able to engage with organisations via multiple channels.

The roll-out of Zoom technology means we can deliver webinars for our

customers and staff.

We welcomed two new members to our Senior Management Team.

Ry Stinton joined us as our GM Finance and Administration, and Jude King is

our GM People and Capability. Both have added considerable experience in

their respective fields to our team, as well as leadership and strategic

thinking.

I began implementing the final key recommendation of the Martin Jenkins

report in June with the creation of a new position I've called Manager, Brand

Development. This will assist us to reach out more, make sure our web

content is vibrant, relevant and engaging, be more visible in social and

mainstream media, and enter new spaces such as podcasting. More people

will know who we are and what we do, and that's great news for our

jobseekers.

Not only is it in our interests as a business to diversify our revenue streams,

but we must also innovate to help change the dire unemployment statistics

for disabled people and those with an injury or illness. We've developed

disability confidence training modules which we're now presenting to

employers, plus specialised employer packages which provide added value to

employers to support our employment placement services, by introducing

more targeted selection and preparation of jobseekers. We also entered into

a partnership with Access Advisors to provide disability confidence training

through the Accessibility Tick programme. The programme signed up 15

large employers in the first year.

I know how frustrating and demoralising it can be when you pursue tertiary

study but fear that you're going to hit a brick wall because of your disability,

and all your efforts won't translate into a job. Not only are we seeking to

change that through our seminars for employers, but we've also partners

with tertiary institutions around New Zealand, so we can work with students

to help them realise their career goals.

In closing, I'd like to thank Gaye Austin and the Workbridge Council for their

advice and encouragement. I am grateful for the confidence David Wright

and the Board have shown in me by appointing me to this role.

My sincere thanks to all the members of my Senior Management Team

who've been so generous with their leadership and insight, to all the staff at

National Office for their hard work and creating such a great workplace, and

Pagell

to every member of our team right across the country. Without exception, I

have felt warmly welcomed, and encouraged by all the enthusiasm and

passion within the organisation.

My final thanks go to those for whom we exist, our jobseekers who put their

trust in us, and our employer partners who gain new team members. We will

give it all we've got to retain your confidence every day.

We are poised for a year of positive transformation and even better service.

Jonathan Mosen

Chief Executive 6 September 2019

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Statement of Comprehensive Revenue and Expenditure For the Year Ended 30 June 2019

Revenue from Exchange Transactions

Placement Contract Management Fee

Support Funds Contract Management Fee

Regional Contract Income

Other Income

Total Revenue from Transactions

Total Revenue

Expenditure (Note 1)

People

Communication

Information Management

Customer Service

Distribution

Asset/Lease Management

Corporate

Total Expenditure

Financing Activities

Interest Income

Income from Investment Funds

Net Surplus/(Deficit} from Finance Activities

Operating Surplus/ ( Deficit}

Non-Operating Activities

Gain/(Loss) on value of Investment Fund

Gain/(Loss) on sale of assets

Total Non-Operating Activities

Total Comprehensive Revenue and Expenditure

2019

11,120,400

500,000

13,118

0

11,633,518

11,633,518

7,921,826

315,163

1,027,251

68,723

498,890

1,283,895

343,467

11,459,216

72,340

88,428

160,767

335,070

91,560

11,957

103,517

438,586

2018

11,000,000

500,000

97,538

28,967

11,626,505

11,626,505

8,307,792

263,435

926,002

72,972

521,747

1,189,622

379,502

11,661,072

90,434

71,584

162,018

127,451

29,578

40,987

70,565

198,016

Pagels

Statement of Changes in Net Assets For the Year Ended 30 June 2019

Equity at 1 July 2018

Surplus/(Deficit) for the year

Equity at 30 June 2019

2019

5,139,151

438,586

5,577,737

2018 4,941,135

198,016

5,139,151

The Statement of Accounting Policies and Notes to the Accounts form part of, and should be read in conjunction with, these Statements of Account.

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Statement of Financial Position

As At 30 June 2019

Current Assets

Cash and Cash Equivalents Other Financial Assets Receivables GST

Prepayments Total Current Assets

Non-Current Assets

Investments Property, Plant and Equipment (Note 2) Total Non-Current Assets

Total Assets

Current Liabilities

Payables GST

Employee Entitlements (Note 3) Total Current Liabilities

Non-Current Liabilities

Employee Entitlements (Note 3) Total Liabilities

NET ASSETS

Represented by:

Equity

For a'-nd o�t

ehalf of,��.

Board

\/ \ I ·r (_� ··-· ... ..,,) \ '.

' •. J

David Wright ,._,

Date:

·1 -1 r,,_f A-,·-�v-L.. J.J

r· I:' (_ DI 7

2019 2018

2,937,888 3,553,422 2,356,518 2,176,531

793,219 69,891 0 120,774

172,018 78,965 6,259,643 5,999,583

179,809 179,809 497,821 260,783

677,630 440,592

6,937,273 6,440,175

481,429 527,053 185,644 0 680,118 762,430

1,347,191 1,289,483

12,345 11,541 1,359,536 1,301,024

5,577,737 5,139,151

5,577,737 5,139,151

Derek Gill


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Statement of Cash Flows

For the Year Ended 30 lune 2019

2019 2018

Cash Flows from Operating Activities

Cash was provided from:

Revenue from Exchange Transactions

Placement Contract Management Fee 10,397,072 11,000,000

Compensatory Outcome Based fee 0 320,000

Support Funds Contract Management Fee 500,000 500,000

Regional Contract Income 13,118 109,939

Other Income 0 11,547

Interest Income 72,340 104,757

Total Revenue from Transactions 10,982,530 12,046,243

Total Operating Revenue 10,982,530 12,046,243

Cash was disbursed to:

Payments to suppliers 2,637,996 2,672,517

GST 688,646 1,271,394

Payments to employees 7,921,826 7,676,213

Total Operating Disbursements 11,248,468 11,620,124

Net Cash Flows From (To) Operating Activities -265,938 426,119

Cash Flows from Investing Activities

Cash was provided from:

Sale of fixed assets 11,957 40,987

Cash was applied to:

Purchase of fixed assets 361,554 21,569

Deposit in Investment Fund

Deposit in Term Investments Net Cash Flows From (To) Investing Activities -349,597 19,418

Net Decrease in Cash Held -615,535 445,537

Opening Cash Brought Forward 3,553,422 3,107,885

Ending Cash Carried Forward 2,937,887 3,553,422

�1,H0,1'� &

A�'$,

\A./) �

�ff\\.'I>The Statement of Accounting Policies and Notes to the Accounts form part of, and should be read in conjunction with, these Statements of Account.

Page18

Reconciliation of Operating Cash Flows For the Year Ended 30 June 2019

Net Surplus (Deficit) for the Year

Add/(Deduct) Non-Cash Items

Depreciation

Income from Investment Fund reinvested

Unrealised (Gain)/Loss in value of Investment Fund

Gain On Sale of assets

Total Non-Cash Items

Net Change in Working Capital

Debtors

GST

Prepayments

Creditors and provisions

Payroll accruals

Income in Advance

Movement in Working Capital

Net Cash Flows From (To) Operating Activities

2019

438,586

124,516

-88,428

-91,560

-11,957

371,157

-723,328

306,418

-93,053

-45,624

-81,508

0

-637,095

-265,938

2018

198,016

137,426

-71,584

-29,578

-40,987

193,293

344,871

-93,993

37,681

-57, 756

20,777

-18,754

232,826

426,119


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1. Reporting Entity

These financial statements comprise the financial statements of Workbridge

Incorporated for the year ended 30 June 2019.

The financial statements were authorised for issue by the Board of Directors on 13th

September 2019.

Workbridge Incorporated is an incorporated society registered under the

Incorporated Societies Act 1908. The Society has 22 branches throughout New

Zealand with the Corporate office in Wellington.

2. Basis of Preparation

(a) Statement of complianceThe financial statements have been prepared in accordance with Tier 2 Public

Benefit Entity (PBE) Financial Reporting Standards as issued by the New Zealand

External Reporting Board (XRB). They comply with New Zealand equivalents to

International Public Sector Accounting Standards Reduced Disclosure Regime (NZ

IPSAS with RDR) and other applicable Financial Reporting Standards as appropriate

to Public Benefit Entities.

The entity is eligible to report in accordance with Tier 2 PBE Accounting Standards

on the basis that it does not have public accountability and annual expenditure does

not exceed $30 million.

The entity is deemed a public benefit entity for financial reporting purposes, as its

primary objective is to provide services to the community for social benefit and has

been established with a view to supporting that primary objective rather than a

financial return.

(b) Basis of measurementThe financial statements have been prepared on a historical costs basis, except for

assets and liabilities that have been measured at fair value, as noted below.

The accrual basis of accounting has been used unless otherwise stated and the

financial statements have been prepared on a going concern basis.

(c) Presentation currencyThe financial statements are presented in New Zealand dollars.

(d) ComparativesThe net asset position and net surplus or deficit reported in comparatives is

consistent with previously authorised financial statements.

The se Notes to the Accounts form part of, and should be read in conjunction with, the Statements of Account.

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{ e) Changes in accounting policies The accounting policies adopted are consistent with those of the previous financial

year.

3. Summary of Significant Accounting Policies

The accounting policies of the entity have been applied consistently to all years

presented in these financial statements.

The significant accounting policies used in the preparation of these financial

statements are summarised below:

{a) Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held on call with banks,

other short-term highly liquid investments with original maturities of three months

or less, and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities in the statement

of financial position.

{b) Receivables Trade debtors and other receivables are measured at their cost less any impairment

losses.

An allowance for impairment is established where there is objective evidence the

entity will not be able to collect all amounts due according to the original terms of

the receivable.

{c) Creditors and other payables Trade creditors and other payables are stated at cost.

{d) Property, Plant and Equipment Property, plant and equipment are measured at cost, less accumulated depreciation

and any impairment losses. Cost includes expenditure that is directly attributable to

the acquisition of the asset.

These Notes to the Accounts form part of, and should be read in conjunction with, the Statements of Account.

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Depreciation is recognised as an expense in the reported surplus or deficit and

measured on a straight value (SL) basis on all Fixed Assets over the estimated

useful life of the asset at the following rates:

Furniture Fixtures and fittings Leasehold Improvements Office equipment Computer equipment Sundry equipment Motor vehicles Software

5 years 5 years Current lease expiry 5 Years 3 Years 3 to 5 Years 5 Years 2 to 3 Years

20%

20%

20%

33%

20 to 33 %

20%

33 to 50%

Leasehold improvements are depreciated over the unexpired period of the lease or

the estimated remaining life of the improvements, whichever is shorter.

The residual value, useful life, and depreciation methods of the Fixed Assets is

reassessed annually.

(e) Leased AssetsLeases where the Entity assumes substantially all the risks and rewards incidental

to ownership of the leased assets, are classified as finance leases. All other leases

are classified as operating leases.

Payments made under operating leases are recognised in the surplus or deficit on a

straight-line basis over the term of the lease. Lease incentives received are

recognised as an integral part of the total lease expense, over the term of the

lease. Associated costs, such as maintenance and insurance, are expensed as

incurred.

(f) Financial InstrumentsA financial instrument is any contract that gives rise to a financial asset of one

entity and a financial liability or equity instrument in another entity.

Financial instruments are comprised of trade debtors and other receivables, cash

and cash equivalents, other financial investments, trade creditors and other

payables and other financial liabilities.

Initial recognition and measurement

Financial assets and financial liabilities are recognised initially at fair value plus

transaction costs attributable to the acquisition, except for those carried at fair

value through surplus or deficit, which are measured at fair value.

Financial assets and financial liabilities are recognised when the reporting entity

becomes a party to the contractual provisions of the financial instrument.


Page22


Derecognition of financial instruments

Financial assets are derecognised when the contractual rights to the cash flows

from the financial asset expire, or if the entity transfers the financial asset to

another party without retaining control or substantially all risks and rewards of the

asset.

A financial liability is derecognised when it is extinguished, discharged, cancelled or

expires.

Subsequent measurement of financial assets

The subsequent measurement of financial assets depends on their classification,

which is primarily determined by the purpose for which the financial assets were

acquired. Management determines the classification of financial assets at initial

recognition into one of four categories defined below, and re-evaluates this

designation at each reporting date.

All financial assets except for those classified as fair value through profit or loss are

subject to review for impairment at least at each reporting date. Different criteria to

determine impairment are applied to each category of financial assets, which are

described below.

The classification of financial instruments into one of the four categories below,

determines the basis for subsequent measurement and whether any resulting

movements in value are recognised in the reported surplus and deficit or other

comprehensive revenue and expense.

(i) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed or determinable

payments that are not quoted in an active market. The entity's cash and cash

equivalents, trade debtors, investments and most other receivables fall into this

category of financial instruments.

After initial recognition, such financial assets are subsequently measured at

amortised cost using the effective interest method, less provision for impairment.

Individually significant receivables are considered for impairment when they are

past due or when other objective evidence is received that a specific counterparty

will default. Receivables that are not considered to be individually impaired are

reviewed for impairment in groups, which are determined by reference to the

industry and region of a counterparty and other shared credit risk characteristics.

The impairment loss estimate is then based on recent historical counterparty

default rates for each identified group.


Page23


(ii) Financial assets at fair value through surplus or deficitFinancial assets at fair value through surplus or deficit include financial assets that

are either classified as held for trading or that meet certain conditions and are

designated at fair value through surplus or deficit upon initial recognition.

Assets in this category are measured at fair value with gains or losses recognised in

the surplus or deficit for the year. The fair value of financial instruments in this

category are determined by reference to active market transactions or using a

valuation technique where no active market exists.

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixed or

determinable payments and fixed maturity other than loans and receivables.

Investments are classified as held-to-maturity if the entity has the intention and

ability to hold them until maturity.

Held-to-maturity investments are measured subsequently at amortised cost using

the effective interest method. If there is objective evidence that the investment is

impaired, determined by reference to external credit ratings, the financial asset is

measured at the present value of estimated future cash flows. Any changes to the

carrying amount of the investment, including impairment losses, are recognised in

surplus or deficit.

(iv) Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative financial assets that are either

designated to this category or do not qualify for inclusion in any of the other

categories of financial assets. The entity's available-for-sale financial assets include

listed securities and debentures, and certain other equity investments.

Equity investments are measured at cost less any impairment charges, where the

fair value cannot currently be estimated reliably.

All other available-for-sale financial assets are measured at fair value. Gains and

losses are recognised in other comprehensive revenue and expenses and reported

within the "available-for-sale revaluation reserve" within equity, except for

impairment losses which are recognised in the surplus or deficit for the year.

When the asset is disposed of or is determined to be impaired the cumulative gain

or loss recognised in other comprehensive revenue and expenses is reclassified

from the equity reserve to the surplus or deficit and presented as a reclassification

adjustment within other comprehensive revenue and expenses.

Interest income or dividends on available-for-sale financial assets are recognised in

the surplus or deficit.


Page24


Available-for-sale financial instruments are reviewed at each reporting date for

objective evidence that the investment is impaired. Objective evidence would

include a significant or prolonged decline in the fair value of the investment below

its cost.

Subsequent measurement of financial liabilities Financial liabilities are measured subsequently at amortised cost using the effective

interest method, except for financial liabilities held for trading or designated at fair

value through surplus or deficit, that are subsequently measured at fair value with

gains or losses recognised in the surplus or deficit.

(g) ProvisionsA provision is recognised for a liability when the settlement amount or timing is

uncertain; when there is a present legal or constructive obligation as a result of a

past event; it is probable that expenditures will be required to settle the obligation;

and a reliable estimate of the potential settlement can be made. Provisions are not

recognised for future operating losses.

Provisions are measured at the estimated expenditure required to settle the present

obligation, based on the most reliable evidence available at the reporting date,

including the risks and uncertainties associated with the present obligation.

All provisions are reviewed at each reporting date and adjusted to reflect the

current best estimate.

(h) Employee entitlementsEmployee benefits, previously earned from past services, that the entity expect to

be settled within 12 months of reporting date are measured based on accrued

entitlements at current rate of pays.

These include salaries and wages accrued up to the reporting date and annual leave

earned, but not yet taken at the reporting date.

Employees of the entity become eligible for long service leave after a certain

number of years of employment, depending on their contract. The liability for long

service leave is recognised and measured at a percentage of Full Value, based on

entitlement date.


Page25


(i) RevenueRevenue is recognised to the extent that it is probable that the economic benefit

will flow to the entity and revenue can be reliably measured. Revenue is measured

at the fair value of consideration received.

The entity assesses its revenue arrangements against specific criteria to determine

if it is acting as the principal or agent in a revenue transaction. In respect of the

management of the Support Funds Workbridge acts in an agency relationship and

only the portion of revenue earned on the entity's own account is recognised as

gross revenue in the Statement of Comprehensive Revenue and Expense. The

entity acts in an agency capacity on behalf of the Ministry of Social Development.

Details of these activities are included at pages 36 to 38.

Revenue from non-exchange transactions

A non-exchange transaction is where the entity either receives value from another

entity without directly giving approximately equal value in exchange, or gives value

to another entity without directly receiving approximately equal value in exchange.

When non-exchange revenue is received with conditions attached, the asset is

recognised with a matching liability. As the conditions are satisfied the liability is

decreased and revenue recognised.

When non-exchange revenue is received with restrictions attached, but no

requirement to return the asset if not deployed as specified, then revenue is

recognised on receipt.

Condition stipulation - funds received are required to be used for a specific

purpose, with a requirement to return unused funds.

Restriction stipulation - funds received are required to be used for a specific

purpose, with no requirement to return unused funds.

Grant Income

Grant Income is recognised as revenue when received and all associated obligations

have been met. Where grants have been given for a specific purpose, or with

conditions attached, income is not recognised until agreed upon services and

conditions have been satisfied. Government grants relating to income are

recognised as income over the periods necessary to match them with the related

services when performed. Grants received for which the requirements and services

have not been met is treated as "income in advance" under current liabilities.

To the extent that there is a condition attached that would give rise to a liability to

repay the grant amount or to return the granted asset, a deferred revenue liability

is recognised instead of revenue. Revenue is then recognised only once the entity

has satisfied these conditions.


Page26


Interest Income

Interest income is recognised as it accrues, using the effective interest method.

(j) Income TaxDue to its charitable status, the entity is exempt from income tax.

(k) Goods and Service Tax (GST)All amounts in these financial statements are shown exclusive of GST, except for

receivables and payables that are stated inclusive of GST.

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.

4. Significant Accounting Judgements, Estimates & Assumptions

The preparation of financial statements in conformity with NZ IPSAS requires

management to make judgements, estimates and assumptions that affect the

application of accounting policies and the reported amounts of assets, liabilities,

income and expenses. Where material, information on significant judgements,

estimates and assumptions is provided in the relevant accounting policy or provided

in the relevant note disclosure.

The estimates and underlying assumptions are based on historical experience and

various other factors believed to be reasonable under the circumstances. Estimates

are subject to ongoing review and actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the year in which the estimate

is revised and in future years affected.

The following are significant management judgements in applying the accounting

policies of the entity that have a significant effect on the financial statements:

Impairment An impairment loss is recognised for the amount by which the asset's or cash

generating unit's carrying amount exceeds its recoverable amount. To determine

the recoverable amount, management estimates expected future cash flows from

each cash-generating unit. In the process of measuring expected future cash flows

management makes assumptions about future operating results. These

assumptions relate to future events and circumstances.


Page27


Fair value measurement of financial instruments

When the fair value of financial assets and financial liabilities recorded in the

statement of financial position cannot be measured based on quoted price in active

markets, the fair value is measured using valuation techniques including the

discounted cash flow model. The inputs to these models are taken from observable

markets where possible, but where this is not feasible, a degree of judgement is

required in establishing fair values. Changes in assumptions about these factors

could affect the reported fair value of financial instruments.

Useful lives and residual values

The useful lives and residual values of property, plant and equipment are assessed

annually based on the following indicators of impairment:

-The condition of the asset based on the assessment of experts employed by the

entity

-The nature of the asset, its susceptibility and adaptability to changes in technology

and processes

-The nature of the processes in which the asset is deployed

-Availability of funding to replace the asset

-Changes in the market in relation to the asset


Page28


1 Operating Statement

1.1 Operating Leases Workbridge Incorporated leases office premises on a variety of terms from 1 month

to 10 years. The operating lease expense incurred can be summarised as follows:

2019 2018 Premises 735,487 709,222 Motor Vehicles 173,558 131,776 Computers 115,453 115,453

1,024,498 956,451

The lease commitments are:

Premises Motor Computer Total Total Vehicles Leases 2019 2018

Year 1 496,734 151,799 115,453 763,986 754,094 Year 2 374,443 103,722 0 478,165 620,331 Year 3 245,345 36,542 0 281,887 418,125 Year 4 188,876 0 0 188,876 271,612 Year 5-7 360,694 0 0 360,694 549 570

1,666,092 292,064 115,453 2,073,608 2,613,733

1.2 Audit Fees Audit fees of $22,000 have been paid to Crowe Horwath New Zealand Audit

Partnership (2018 $21,750).

1.3 Contingent Liabilities

Contingent liabilities $125,000 to Goodman Nominees (NZ) Ltd for Auckland office

lease bank guarantee (2018 Goodman $125,000) and $54,809 to DGM Business

Group Ltd for Lower Hutt lease bank guarantee (2018 DGM Business Group Ltd

$54,809).

1.4 Events after the Reporting Period

On Aug 9, 2019 Workbridge entered into a Variation to a 3 Year Outcome

Agreement with the Ministry of Social Development to provide Support Funds

Management. This purpose of the Variation was to reflect the revised contract,

with the value of grants increased to $19,040,733 in total for the full period of the

contract.

On July 23, 2019, Workbridge entered into a variation to the Outcome Agreement

for the supply of Employment Services. The Variation reflected the increase on

contract value (excluding GST) to $60,278,400 due to new MSD budget.



1.5 Related Parties During the year Workbridge paid $33,600 for consulting services to Disability

Responsiveness New Zealand in which Pam MacNeill (Board Member) is acting CEO.

These services were purchased on an arm's length basis. There were no amounts

outstanding to and from the company at Year End (2018 $0).

The entity has a related party relationship with its key management personnel. Key

management personnel include the Board of Management and Senior Management.

Board Fees Senior Management Salaries and Other short-term employee benefits Termination Benefits

Total Remuneration

Number of key management personnel

2 Detail of Fixed Assets

2019

119,082 970,397

0

1,089,479

16

The breakdown of fixed assets as at 30 June 2019 is as follows:

Asset Classification Additions Depr Cost Accum Expense Depr

Furniture 2,043 11,670 97,315 74,831 Fixture and Fittings 11,310 56,054 345,111 227,728 Office Equipment 0 5,239 14,203 14,080 Sundry Equipment 676 3,293 20,205 15,546 Computer Equipment 0 4,646 227,927 223,387 Motor Vehicles 0 4,076 472,609 472,609 Software 347,526 39,538 428,912 80,281

Total Assets 361,555 124,516 1,606,282 1,108,462

2018

117,004 795,016

0

912,020

15

Closing Book

Value

22,484 117,383

123 4,659 4,540

0 348,632

497,821


Page30


The breakdown of fixed assets as at 30 June 2018 is as follows:

Asset Classification Additions

Furniture 15,256 Fixture and Fittings 3,269 Office Equipment 1,267 Sundry Equipment 1,777 Computer Equipment 0 Motor Vehicles 0 Intangibles 0

Total Assets 21,569

3 Employee Entitlements

Depr Cost Accum Expense Depr

11,089 95,272 63,161 53,225 333,801 171,674

5,133 14,203 8,841 3,142 19,529 12,253

10,708 227,927 218,740 16,522 511,956 507,880 37,608 81,386 40,742

137,426 1,284,075 1,023,292

Closing Book

Value

32,111 162,127

5,362 7,276 9,186 4,076

40,644

260,783

Payroll accruals include employee entitlements of $609,172 (2018 $685,140) for

accrued wages, holiday pay, and superannuation and are reported under: Current

Liabilities Payroll Accruals $680,118 and Non-Current Liabilities Long Service Leave

$12,345.

The balance of the Payroll Accruals figure includes ACC, PAYE and Southern Cross

$83,291 (2018 $88,831).

4 Detail of Cash and Cash Equivalents

The carrying amount of cash and cash equivalents approximates their fair value.

Short term deposits are made for varying periods of between one to three months

depending on the immediate cash requirements of the entity, and earn interest at

respective short-term deposit rates.

The Cash and Cash Equivalents available for use as at 30 June 2019 is as follows:

Petty Cash BNZ Cheque account BNZ Call account ANZ Call account Westpac Call account Term Investmen ts

Total Cash and Cash Equivalents

2019

5,900 91,585

2,836,112 12

4,279 0

2,937,888

2018

6,300 3,295 8,442

1,832,337 169

1,702,879

3,553,422



The Cash Equivalents not available for use as at 30 June 2019 are as follows:

Term Investment Term Investment

Total

2019

125,000

54,809

179,809

2018

125,000

54,809

179,809

Term Investment of $125,000 is related to bank guarantee provided in respect of

the Workbridge Auckland lease. The bank guarantee reduces on i st May 2022 to

$30,000 until expiry 30th May 2025.

Term Investment of $54,809 is related to bank guarantee provided in respect of the

Workbridge Lower Hutt lease. The bank guarantee expires on 22nd February 2025.

The bank has a charge over these term investments.

5 Receivables from Exchange Transactions

Trade debtors GST receivable

Total

2019

793,219

0

793,219

2018

69,891 120,774

190,665

Trade debtors and other receivables are non-interest bearing and receipt is

normally on 30 days terms. Therefore the carrying value of trade debtors and other

receivables approximates its fair value.

As at 30 June 2018 and 2019, all overdue receivables have been assessed for

impairment and appropriate allowances made.

All receivables are subject to credit risk exposure.

6 Other Financial Assets

Managed Fund

Total current other financial assets

2019

2,356,518

2,356,518

2018

2,176,531

2,176,531

The fair value of the entity investments in Managed Funds has been determined by

reference to their quoted prices at the reporting date. Gains and losses are

recorded within "other gains/(losses) ", within the reported surplus or deficit.


Page32


7 Payables Under Exchange Transactions

Trade creditors Non-trade payables and accrued expenses GST Payable

Total

2019

206,398 275,012 185,644

667,054

2018

282,752 244,301

0

527,053

Trade creditors and other payables are non-interest bearing and normally settled on

30 day terms; therefore their carrying amount approximates their fair value.

8 Financial Instruments

{a) Carrying value of financial instruments The carrying amount of all material financial position assets and liabilities are

considered to be equivalent to fair value.

Fair value is the amount for which an item could be exchanged, or a liability settled,

between knowledgeable and willing parties in an arm's length transaction.

{b} Classification of financial instrumentsAll financial assets held by the entity that are classified as "loans and receivables"

are carried at cost less accumulated impairment losses.

The carrying amounts presented in the statement of financial position relate to the

following categories of financial assets and liabilities.

Financial Assets as at 30 June 2019

Asset Classification Financial Held-to- Loans and Available Total assets at maturity receivables -for-sale

fair value invest- financial through ments assets

surplus or deficit

Cash and cash 0 0 2,937,888 0 2,937,888 equivalents Trade debtors and 0 0 793,219 0 793,219 other receivables Other financial assets 2,356,518 0 0 0 2,356,518 Investment 0 179,809 179,809

Total 2,356,518 0 3,910,916 0 6,267,434

These Notes to the Accounts form part of, and should be read in conjunction with, the

Statements of Account.


Financial Liabilities as at 30 June 2019

Liability Classification Financial Financial Total liabilities Liabilities

at fair at value amortised

cost

Trade creditors and other payables 0 206,398 206,398

Total 0 206,398 206,398

Financial Assets as at 30 June 2018

Asset Classification Financial Held-to- Loans and Available Total assets at maturity receivables -for-salefair value invest- financial

through ments assets surplus or

deficit

Cash and cash 0 0 3,553,402 0 3,553,402 Equivalents Trade debtors and 0 0 69,891 0 69,891 Other receivables Other financial assets 2,176,531 0 0 0 2,176,531 Investment 0 179,809 179,809

Total 2,176,531 0 3,803,122 0 5,979,653

Financial Liabilities as at 30 June 2018

Liability Classification Financial Financial Total liabilities Liabilities

at fair at value amortised

cost

Trade creditors and other payables 0 282,752 282,752

Total 0 282,752 282,752



9 Capital Commitment

A contract was signed with Blue Wolf an IBM Company in December 2018 for the

development of CRM software. A total of $328,736 (Excluding GST) has been spent

on this project year to date leaving a capital commitment of $192,352 (Excluding

GST) remaining at year end.

10 Prior Year Comparatives

Comparative figures included in the financial statements relate to the financial year

ended 30 June 2018. Where necessary these figures have been reclassified on a

basis consistent with current disclosure for the year ended 30 June 2019

�tHOR1p�

These Notes to the Accounts focm part of, and should be cead In conjunction with, the �.A:) Statements of Account. "1"1/1 m&

Page35

Statement of Revenue and Expenditure - Training SupportFor the Year Ended 30 June 2019

2019 2018

Income

Service Contract Interest

660,000 793,600 739 1,722

Total Income 660,739 795,322

Less Expenditure

Funds paid - Training support General expenditure

460,659 669,544 40 41

Other Expense Total Expenditure 460,699 669,585

Net Surplus (Deficit) 200,040 125,737

Net Surplus (Deficit) brought forward 130,546 4,809 Funds transferred to Job Support bank account 309,905 0

Net Surplus (Deficit) carried forward 20,681 130,546

As at balance date the Training Support Scheme has $20,681 in the bank. $38,157

was committed for subsequent payment to applicants in anticipation of Support

Funds funding continuity.

In respect of the management of the Support Funds Workbridge acts in an agency

relationship and only the portion of revenue earned on the entity's own account is

recognised as gross revenue in the Statement of Comprehensive Revenue and

Expense on page 15.

In respect of the information included on this page Workbridge acts in an agency

capacity on behalf of the Ministry of Social Development.


Page36

Statement of Revenue and Expenditure - Self StartFor the Year Ended 30 June 2019

2019

Income

Service Contract 0 Interest 74 Total Income 74

Less Expenditure

Funds paid - Training support 0 General expenditure 40 Other Expense Total Expenditure 40

Net Surplus (Deficit) 34

Net Surplus (Deficit) brought forward 8,808

Net Surplus (Deficit) carried forward 8,842

As at balance date the Self Start Scheme has $8,842 in the bank.

2018

0 93 93

691 40

731

-638

9,446

8,808




Expense on page 15.




Page37

Statement of Revenue and Expenditure - Job SupportFor the Year Ended 30 June 2019

Income

Service Contract Interest Total Income

Less Expenditure

Funds paid - Training support General expenditure Other Expense Total Expenditure Net Surplus (Deficit)

Net Surplus (Deficit) brought forward

Net Surplus (Deficit) carried forward

Income

Service Contract Interest Total Income

Less Expenditure

Funds paid - Training support General expenditure Other Expense Total Expenditure Net Surplus (Deficit)

Net Surplus (Deficit) brought forward Funds Transferred from Training Support bank account

Net Surplus (Deficit) carried forward

2019

5,913,415 17,015

5,930,430

5,334,616 40

0 5,334,656

595,774

228,466

824,240

2019

5,913,415 17,015

5,930,430

5,334,617 40

0 5,334,657

595,773

228,466 309,905

1,134,144

2018

5,989,733 11,407

6,001,140

5,821,009 38

0 5,821,047

180,093

48,373

228,466

2018

5,989,733 11,407

6,001,140

5,821,009 38

0 5,821,047

180,093

48,373 0

228,466

As at balance date the Job Support Scheme has $1,134,144 in the bank. $989,192

was committed for subsequent payment to applicants in anticipation of Support

Funds funding continuity.




Expense on page 15.




� Crowe Horwath�

INDEPENDENT AUDITOR'S REPORT

To the Board of Management of Workbridge Inc.

Opinion

Crowe Horwath New Zealand Audit Partnership

Member Crowe Horwath International

Level 29, 188 Quay Street Auckland 1010 New Zealand

PO Box 158 Auckland 1140 New Zealand

Tel +64 9 303 4586 Fax +64 9 309 1 i98 www.crowehorwath.co.nz

We have audited the financial statements of Workbridge Inc. {"the Society") on pages 15 to 38, which comprise the statement of financial position as at 30 June 2019, the statement of comprehensive revenue and expenditure, statement of changes in net assets and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Society as at 30 June 2019, and its financial performance and its cash flows for the year then ended in accordance with Public Benefit Entity Standards with Reduced Disclosure Regime issued by the New Zealand Accounting Standards Board.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Society in accordance with Professional and Ethical Standard 1 (Revised) Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

Other Information

The Board of Management are responsible for the other information. The other information comprises the information included in the Vision, Mission, Values, Council and Board of Management, Council President's Report, Board Chairperson's Report and Chief Executive's Report on pages 1 to 14, but does not include the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of audit opinion or assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Board of Management for the Financial Statements

The Board of Management are responsible on behalf of the Society for the preparation and fair presentation of the financial statements in accordance with Public Benefit Entity Standards issued by the New Zealand Accounting Standards Board, and for such internal control as the Board of Management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Crowe Horwath New Zealand Audit Partnership is a member of Crowe Horwath international, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity.

� Crowe Horwath,..

In preparing the financial statements, the Board of Management are responsible for assessing the Society's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Management either intend to liquidate the Society or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (NZ} will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (NZ}, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit 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 Society's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of the use of the going concern basis of accounting by the Board of Management and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Society's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report However, future events or conditions may cause the Society to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the Board of Management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Crowe Horwath New Zealand Audit Partnership CHARTERED ACCOUNTANTS

Dated at Auckland this 27th day of September 2019

Documents

Workbridge · The Role of the Workbridge Council is one of Conscience, Community, Advocacy, Networking, Perspective, and Guidance. In this sense the Council has the responsibility