20 21 - pgdb.co.nz

ANNUAL REPORT 1 APRIL 2020 - 31 MARCH 2021

a leading • intelligence-led • risk-focused • regulatory body

20 21

04

CONTENTS 2020/21 In review 02 From the Chairman

Who we are04 BoardMemberprofiles

Accountability07 Our performance

Registration12 Thestatisticsandtrends

Licensing13 Thestatisticsandtrends14 Authorisationbreakdown

Examinations15 Thestatisticsandtrends

Complaints and discipline16 Thestatisticsandtrends

The financials17 Statementofresponsibility18 Statementofcomprehensiverevenueandexpense19 Statementoffinancialposition20 Statementofchangesinnetassets/equity20 Statementofcashflows21 Notestothefinancialstatements33 Memorandumaccountsforfutureprocesses34 Statementofcomprehensiverevenueandexpense withoverheadsincorporated35 IndependentAuditor’sReport

Who we are and what we do Weareastatutorybodygovernedbyaten-memberBoardappointedbytheMinisterof BuildingandConstruction.

Wehave16staff locatedinourWellingtonoffice.WeareestablishedunderthePlumbers, GasfittersandDrainlayersAct2006 toprotectthehealthandsafetyofmembersofthe publicbyensuringthecompetencyofandregulatingtheservicesofplumbers,gasfitters anddrainlayers.

Licensing

Theregistrationandlicensingofourtradespeople.

Competency Promoting and ensuringthe competencyand safeworking practicesofour tradespeople.

Enforcement Respondingtoinquiriesand complaintsaboutour tradespeople,andensuringthat appropriateactionistaken tosanctionillegalplumbing, gasfittinganddrainlayingwork.

01

2020/21INREVIEW

NICK FLECKNEY CHAIRPERSON

FROM THE CHAIRMAN

IampleasedtopresentthePlumbers,GasfittersandDrainlayersBoardAnnualReportfor2020/21.

ThereporthighlightstheBoard’sachievementsindeliveringonitskeystrategicprioritiesduringthefinancialyear.

Compliancewithregulationandbestpracticearecomplexandever-changingtopics.Wehavecontinuedtogive practitionersthetoolsandresourcestheyneedtoensurethattheyarecompetentandcompliant—inwhathasbeen adifficultyearundertherestrictionsofaCOVID-19environment.Wehavehelpedthemtostayuptodatewith regulationandprovidedclarityonbestpracticeandtechnicalissues.

Workingalongsideourindustrykeystakeholdersandprivatesectorpartnerstotackleunauthorisedwork,wehave remainedcommittedtopromotingandensuringthesafetyofthepublicandtheirproperty.

Duringtheyearwehave:

• Sustainedgoodnumbersofauthorisationsacrossthetradesduringthe2020/21licensingyear.• Continuedthestreamliningandimprovementoftherelicensingsystem.• Maintainedacomprehensivelibraryoftechnicalassetsandsupportdocumentation.• Continuedtoworkcollaborativelywithotherindustryregulatorsinthereductionofillegalactivity.• Workedsuccessfullywithpractitioners,stakeholdersandproductsupplierstoextendourpublicawarenessreach.• Maintainedascheduleofregularstakeholderconsultationmeetings.

Financial

COVID-19hadaminimalimpactonthefinancesoftheBoardandduetotheincreaseinauthorisationsduring2020/21abetterthanforecastedrevenuewasachieved.Revenuebeingabovebudgetby$815,876isthemaincontribrutortotheBoard’ssurplusforthefinancialyearof$507,429asagainstabudgetlossof$473,674.Thishasresultedinagrowthinreservesto$4,785,774attheendofthefinancialyear.

Registrationandlicensing

TheCOVID-19impactonregistrationandlicensingforthe20/21yearhasbeen minimal.Thenumberofauthorisationsissuedcontinuedtoclimbfromthe previousfinancialyear,withatotalof24,605issued.Thiswasa5%increase onthepreviousyear.

Thenumberofpeopletakinguptradequalificationsisontherise,withtheuptake ofTraineeLimitedCertificatesgrowingby12%.TheJourneymanauthorisation classreporteda19%increase.

TheintroductionofthevirtualNZPractisingLicenceavailablethroughthelicencingapphadapositiveeffectontheBoard’scustomerservice.Itremovedtheneedforpractitionerstoexperiencetraditionaldelaysandpostalissueswhenrelicensing.Providingafastandconvenientoptionwhenlicencecredentialsarerequiredfor compliancedocumentation,thenewapproachhasfurtherstreamlinedprocesses forpractitioners.

02

Competence

TheBoard’sgoalofensuringthatregisteredandlicensedtradespeopleperformingplumbing,gasfittinganddrainlayingworkarecompetentdidexperiencesomedisruptionduringtheyearduetotheimpactsofCOVID-19.

Theinabilitytoconductface-to-facesessionsmeantthatthedeliveryofCPDwaspostponed.However,ourabilitytoprovidehelpdeskassistanceandkeeptechnicalassetsanddocumentationavailableandpublisheddirectlytopractitionersregularly,enabledustosupporttheindustryduringthistime.

Reducingunauthorisedwork

AnothergoaloftheBoardistoreduceunauthorisedplumbing,gasfittinganddrainlayingwork.Itisimportantforpublichealthandsafetythatthisworkisperformedbytrained,skilledandcompetenttradespeople.Thedetectionofhigh-riskareasthroughtheuseoftheReport-A-Cowboyapp,intelligencetrackingtoolsandtargetedoperationsbytheinvestigationsteamremainedinplaceforthe2020/21year.

ThetotalnumberofR.A.Cappdownloadsisnow14,247andwhiletargetedoperationswereaffectedbytheimplicationsofcovid-19,sixtargetedoperationswerecarriedoutand82sitevisitsachieved.

PublicawarenessactivitytoraiseawarenessoftheneedtouseauthorisedtradespeopleandthepitfallsassociatedwithDIYprojectsremainedakeyfocusduringtheyear.VisitorstotheBoard’swebsitesseekingconsumeradvicehasincreasedby66%forthe20/21year.

TradespeopleworkingwiththeBoard

HavingtradespeopleworkalongsidetheBoardtoensurecompetenceandcomplianceisthethirdgoal oftheBoard.Itisimportantthatweremainatrustedandtransparentsourceofinformation.

TheindustrywasfullyinformedviathepublicationofInfoBrief,theoperationofthewebsiteanddirecte-mailcampaigns.Ourstakeholderrelationshipsensuredthatinrapidlychangingtimes,uptodateandrelevantinformationandnewpracticesarefedbackthroughtotheindustry.

Duringtheyear,theStakeholderLiaisonGroupmetregularlywithassociatedregionalpractitioner representativestodiscusssharedissues.ThefirstmeetingoftheyearwasheldinAugust.Subsequent meetingswereheldinDecemberandearlyFebruary.

Summary

Fromtheonset,2020deliveredaperiodofchange,whichmeantweexpectedadegreeofdisruption throughouttheyear.

Ourkeyrelationshipshavebeeninvaluableinourstrategicinitiativestocreatestrongerindustrysupport, andraisethereputationofthetrades.Newprivatesectorrelationshipsplayedanessentialpartinour successofthedevelopmentofanewpublicawarenessapproach.Wereachedtheconsumeronmass andextendedourindustryhealth&safetymessagereachfurtherthaneverbefore.

Inthewakeofasuccessfulyear,IamlookingforwardtocontinuingtoworkwiththeBoardandthe Secretariattoensurewecontinuetorefinehowweworkandmaximisetheimpactwemakeonthe industry.

IwouldliketothanktheBoardmembersfortheirsupportduringmytermasChairpersonand acknowledgetheircontributiontothe2020/21workprogramme.Wemustalsothankthe ChiefExecutiveOfficerandhisteam,whoaredoinganexcellentjobensuringthattheBoardis operatingsmoothly.

03

BOARDPROFILESBOARDMEMBERSHIP2020/21

NickFleckneyisaCertifyingPlumber,GasfitterandDrainlayerwhoistheHoDHydraulicsforTMConsultantsinChristchurch.AlongwithhistradequalificationshealsoholdsaCertIVHydraulicBuildingServicesDesign,NZRegulatoryComplianceQualifications,BackflowTestingandSurveying

Accreditations,PostGraduate CertificateinEducation,Graduate DiplomainHigherEducation.Nickisveryactiveinthespecialistareaofwa-tersecurityandpublichealth.NickwasfirstappointedinSeptember2012,re-appointedin2018andisfromSelwyn.

NickFleckney-Chairperson

DianaKuhtz-Covichisaself-employed registeredandCertifyingPlumber andGasfitterandistheManaging DirectorofUniqueGasandPlumbing LtdinKaitaia.DianaisanIndependent

QualifiedPerson(IQP)inbackflow protection,andin2011waspresentedwiththeBoard’sMeritofExcellenceAward.Dianawasappointedin September2016andisfromKaitaia.

DianaKuhtz-Covich-DeputyChairperson

BarryWillcoxisregisteredasaCertifyingPlumberandGasfitter.Heisthe ManagingDirectorofWillcoxPlumbing LtdandDirectorofWesthamLtd.HeisthepastpresidentofCanterburyMasterPlumbers.BarryiscurrentlyconveneroftheCanterburyMasterPlumbers

disputescommitteeandisacurrent memberoftheCanterburyMasterPlumbersFinanceCommitteeand Executive.Heisalsoamemberof theSkillsOrganisationAdvisoryGroup.BarrywasappointedinSeptember 2015andisfromChristchurch.

BarryWillcox

KenDouglasisregisteredasaCertifyingPlumber,GasfitterandDrainlayerandwasManagingDirectorofFBHall&CoLtdfrom1990to2015.Kenhasbeen involvedwiththeWaikatoMaster Plumbers,GasfittersandDrainlayersAssociationformanyyears.Onthe executive,hewasthepresidentfrom

1989to1991,ontheorganising committeeforthe1990plumbers conferenceinRotorua,andconvener oftheconferenceinHamilton2004. On9May2018,Kenwasmadea lifememberoftheWaikatoMaster PlumbersAssociation.Kenwas appointedinAugust2015

KenDouglas

04

DeborahCranko

DeborahCrankoisapractisingRegistered Architect,FellowoftheInstituteof Architects,andCo-Directorofa professionalservicesfirmwhichprovidesarchitectureandprofessionalengineeringservices.ShewasawardedtheNational AssociationofWomen’sProfessional WomanoftheYearin2015.Deborah hasalsohadlong-standinggovernanceinvolvementinarchitecturerelatedbodiesincludingDeputyChairoftheNewZealand

RegisteredArchitects’Board,ChairoftheAuditCommitteeoftheNZArchitects’ Co-operativeSociety(professional indemnityinsurance),andaBoardMembersince1998.SheisChairoftheEngineeringAssociatesRegistrationBoardandrecentlyChairedtheProfessionsAdvisoryGrouptotheSchoolofArchitectureandDesignatVictoriaUniversityofWellington.DeborahwasappointedinSeptember2015.

MartindeGouw

MartindeGouwisaregisteredCertifying Plumber,GasfitterandDrainlayer,IQP BackflowPrevention,andholdsan AssociatedTradesElectricalRegistration.HeistheManagingDirectorofClyne&Bennie(1988)Ltd,since1995.MartinisaDirectorofMasterPlumbers,Gasfitters&DrainlayersNZInc(since2012)whereheservedasNationalPresidentfortwo

years.HecurrentlychairsTheDisputesandHealth&SafetyCommittees.MartinisthecurrentPresidentandExecutiveMemberoftheCanterburyMasterPlumbers,andapreviousmembertothePGDBAdvisoryGroup.AmemberoftheInstituteof Directors,Martinwasappointedin September2019andisfromChristchurch.

SueSimonshasspecialisedin EnvironmentalandResourceManagementLawformorethan25years.Sheisa highlyregardedlitigatorandhasgained nationalrecognitionforherexpertiseineveryaspectofthisareaoflaw.Sue hasleadprecedentsettingandgroundbreakingcasesinmanyareaswithinherspecialty.

ShehasappearedbeforetheEnvironmentCourtregularlyandmanyBoardsofInquiryincludingthoseinconnectionwiththe RuataniwhaDamandWiriPrison.Sue hasrepresentedmanylargedevelopersobtainingsignificantlivezoningforFletcherResidential,FultonHoganandTodd Propertyandhassucceededinobtainingplanvariationsforcontroversialgreenfields

developmentsuchasOkuraandWesley.Sheisroutinelyinstrumentalinobtainingresourceconsentsandrezoningtofacilitatelargescaleurbanandruraldevelopmentprojects.TheseincludePokenoand MillwaterinAuckland,andnaturalresourcedevelopmentprojectssuchasmining, quarrying,cleanfillsandlandfills.Sueisfrequentlycalledupontoprovidehigh levelopinionsoncomplexresource management,LocalGovernmentand environmentalissues.In2012,SueandSimonBerryco-foundedtheboutique Environmentalspecialtylawfirm,BerrySimons.In2016SuewontheAwardforExcellenceattheAucklandPropertyPeopleAwards,recognisinghercontributiontothepropertysector.Suewasappointedin September2019andisfromAuckland.

SueSimons

Bethisaregisteredplumberandthe GeneralManageratPipewisePlumbingandGasfittingLtdinAuckland.Priortoplumbingsheworkedinfinanceandaccountingfirms.DuringherapprenticeshipshewasawardedtheATTBOCMeritawardin2013andtheATTPlumbingWorldAwardforExcellence

inPlumbingandDrainlayingin2016.Bethbringsapassionforplumbingwithhands onexperienceasaplumberandcorporate experience,particularlyingrowinga businessandmanagingasuccessful company.BethwasappointedinAugust2020andisfromAuckland.

BethHealy

05

TofaSuafoleGush

TofaGushhasbeenapublicservantforover30yearsandhashadvariousseniorrolesinGovernmentandthe NGOsector.Tofaisastrongadvocate forPacificPeoples’issuesand opportunitiesandhasextensivepublicsectorexperienceinhealth,housing,socialdevelopmentandwithagenciesinvolvedinPacificPeoples’development.Tofahasexperienceingovernanceroles

asaBoardMemberforPrimaryHealthOrganisations’inWellingtonandHuttValleyandonCollegeBoards.TofaiscurrentlytheDirectorofPacificPeoples’HealthfortheHuttValleyand WairarapaDHB’sandalsoInterim DirectorforCapital&CoastDHB. TofahasaMastersDegreeinPublic ManagementfromVictoriaUniversityofWellington.ShewasappointedinAugust2020andisfromWellington.

Ming-chun Wu

Ming-chunWuisaCharteredDirectorandpublicsectorconsultantwithover 10years’experienceindevelopingstrategiesandleadingtransformationalchangestoimproveeffectivenessandefficiencyoforganisations.SheholdsfourBachelor’sdegreesandanMBA.Ming-chunhasheldgovernanceroles inprofessionalorganisations, RegistrationBoardsandRegulatory Bodies,communityandolunteerservice

organisations,andexpertAdvisoryBoards.SheisalsoamemberofvariousfinanceandriskcommitteesonBoardswheresheholdsagovernancerole.Havingheldseniorpublic-sectorrolesandledstrategyformulationandpolicydevelopmentinlargepublic-sector organisations,Ming-chunbrings governanceexperienceaswellas practicalknowledgeandhands-onexperienceofhowprofessionalbodiesoperateinregulatedenvironments.

ColleenUpton

ColleenUptonistheGeneralManager ofHuttGas&PlumbingSystemsLtd andaPartnerinUptonElectrical. PreviouslyshehasbeenaDirector ontheMasterPlumbersBoardand MasterlinkBoard.ColleenhasalsoservedonSchoolBoardsofTrustees,involvingChairofbothDisciplinaryand

Boardatsecondaryschoollevel.SheholdsapositionontheLeadGroupfortheQualificationsReviewwithTheSkillsOrganisationandhasheldanexecutivepositionwiththePlumbers,GasfittersandDrainlayersFederationsinceits inception.ColleenwasappointedinMarch2015andisfromUpperHutt.

CraigO’Connell

CraigO’ConnellistheOwner/Directorofthemanagementconsultingfirm,RecruitmentandPerformance(RAP)ConsultingLimited.CraigservedastheactingChiefExecutiveofthePlumbers,GasfittersandDrainlayersBoardfrom

FebruarytoNovember2010.Heholds aBachelorofArtsinPsychologyand aBachelorofCommerceand AdministrationinEconomics.CraigwasappointedinJuly2011andisfrom Wellington.

TENURE FINISHING 31 AUGUST 2020

TENURE FINISHING 14 AUGUST 2020

06

OUR PERFORMANCE

Output Target 2020/21Result

• Upskillingexistingworkforce.

• Materialreadyforcommencementof2020/21CPDtraining.

• Achieved.

• CPDtrainingdeliveredtoaminimumof40sessions.

• N/A.DeliveryofCPDwas cancelledduetoCOVID-19.

• CPDavailableonline. • N/Aasabove.

• 90%ofallauthorisedtradespeoplecompleteCPDtraining.

• N/ACPDcancelledin2020dueto COVID-19.

• CPDtopicsselectedfor2020/21year.

• Achieved.Topicsdevelopedfor2020will bedeliveredin2021.

• A modern and responsivesystemoftraining.

• Supportimplementationof WorkplaceDevelopmentCouncils asappropriate.

• Nosupporthasbeenrequiredsofarbut wecontinuetomonitordevelopmentsandwillofferassistanceifappropriate.

• Sustainedgrowth oftheskilled workforce.

• ConsultandimplementintroductionofLevel5qualification.

• Ontargetfordeliverylate2021toearly2022.

• Continuedoperationofelectronic tradespersonexam.

• Achieved.

• ContinuedoperationofCertifyingexam.

• Achieved.

• Pathwaysforskilledmigrantstoentertheworkforce.

• RecommendationforRegistrationprocess.

• Achieved.

• IncreaseddiversityoftheWorkforce.

• Supporttheconstructionindustry’saimtoboostthenumberofwomenintrades.

• WiththeReformofVocationalEducationimplementationunderwaythereappears tobefewinitiativesfocusedonthis issue.Wewillprovideassistancetoany appropriateinitiatives.

STRATEGICGOALONE:ASKILLED,PROFESSIONALWORKFORCE

TheBoardholdsanaccountabilityagreementbetweentheMinisterforBuildingandConstructionthatestablishestheMinister’sexpectationsoftheBoard.

TheAgreementenablestheMinistertomonitortheBoardandholdtheBoardaccountableforits performance.

ThefollowingistheinformationthatrelatestothataccountabilityagreementwiththeMinister, andtheBoard’sbusinessplan,whichenablesaninformedassessmenttobemadeoftheBoard’s performanceaspersection151(1)(a)ofthePlumbers,GasfittersandDrainlayersAct2006.

07

BUSINESS PLAN


• Increasedpublicand widerconstruction industryawarenessof theimportanceofusingauthorisedtradespeople toperformrestricted work.

• Publicawarenesscampaign. • Achieved.Myreno.nzlaunchedinFebruary2021.

• Aconsumerawarenesssurveyiscarriedoutthatmeasures;

• a)publicawarenessandtheneedtouseauthorisedtradespeople;

• b)measuresconsumerconfidenceintradespeople.

• Notachieved.TheBoardspublicawarenessactivityfor2021runspast30May2021–finishingmid-August.Surveytobeconductedon completion.

• Adecreasein unauthorisedwork.

• Minimumofsixtargeted operations(Morepermitted dependingonbudgetary constraints).

• Sixtargetedoperationscompleted.

• 75sitevisits. • 82sitevisits.

• Arespectedcomplaints anddisciplinarysystem.

• Createsearchabledecision database.

• Achieved.

• Timelyinvestigations. • Disciplinaryinvestigationscompletedwithin80workingdaysfromreceiptofcomplaint.40/43–93%.

• Allegationsofoffencesprocessedtoadecisionaboutprosecutionwithin40workingdaysofreceiptofformalallegation.14/18=78%.

• Timelydecisions. • Decisions,includingpenalty,releasedwithin40workingdaysofthe disciplinaryhearing.26/31=84%.

• Inputintoreviewoflegislation. • Wecontinuetoprovidesupport whenrequiredbyMBIE.

STRATEGICGOALTWO:PUBLICCONFIDENCEINTHETRADES

STRATEGICGOALTHREE:THEBOARDWORKSWITHPRACTITIONERSTO ACHIEVEGOALS


• Practitionersengagewith theBoard.

• Aminimumof20Stakeholder consultationmeetingsareheld throughoutthecountryduringtheyear.

• StakeholderconsultationmeetingswereputonholdduetoCOVID-19buttheindustrywaskeptfullyinformedthroughInfoBriefandregularupdates.

• Practitionersarefully informedandhaveaclearunderstandingoftheir obligations.

• TheBoardmaintainsa programmeofmeetingswithstakeholdersincludingindustryrepresentatives.

• AlthoughCOVID-19hadimpactedonmeetingswithStakeholders,several meetingswerestillheldviavideo conferenceandfacetoface.These included:Worksafe;MBIE;Unitec; AuditNZ;ARA;Skills;JAG;MinistryofEducation;WPC;MIT/ICE;MasterPlumbers;WNZ;WatercareServicesLtd;NeurodiversityLeadershipForum;Aspeq;WellingtonCityCouncil.

• ThreeStakeholderLiaison Groupmeetings.

• Achieved.ThefirstpostCOVID-19 meetingwasheldon31August2020, followedby1December2020and 15February2021.

• InfoBriefispublishedatleast 11timesduringtheyear.

• Achieved.

08


• Auserfriendlyregistrationandlicensingprocess.

• Rolloutofnewdatabaseand mobilephoneapp.

• Achieved.

• Applicationsforregistration. • 97%ofapplications processedwithinten workingdays.

• Applicationsforlicensing. • 98%ofapplications processedwithinfive workingdays.

STRATEGICGOALTHREE:THEBOARDWORKSWITHPRACTITIONERSTO ACHIEVEGOALSCONT/:

BUSINESS OPERATIONS

Output 2020/21Result

Performancetargets

• TheBusinessPlanandbudgetfor2021/2022isadoptedby31March2021. • Achieved.

• TheStrategicPlanfor2021/2024isadoptedby1December2020. • Achieved.

• TheBoard’scostsoveralldonotexceedtheapprovedexpenditurebudget. • Achieved.

• AnAnnualReportfortheyearending31March2020,withanunmodifiedauditopinion,isadoptedbytheBoardby31July2020.

• Achieved.

• Publishquarterlykeystakeholdere-newsnotificationsfourtimesperyear. • Achieved.Publication disestablishedandreplacedwithEDMupdates.

• ThereviewofalltheBoardpoliciesanddelegationsproceedsinaccordancewiththethreeyearrollingreviewprogramme.

• Achieved.

Legalcompliance

• Aminimumofsixorganisationwidestafftrainingsessionswillbeheldintheyearending31March2021.

• Notachievedduetothe impactofCOVID-19.

• TheBoardperformsitsfunctionswithoutanysignificantcompliancebreachesoccurring.

• Achieved.

OUTPUT AGREEMENT

Task Output Target 2020/21Result

• Registrationandlicensingsystem.

• Ensuretheregistrationandlicensingof tradespeopleis efficient.

• Applicationsforregistrationareprocessedwithintenworkingdays.

• Applicationsforlicensingareprocessedwithinfiveworkingdaysofreceipt.

• 97%ofapplications processedwithinten workingdays.

• 98%ofapplications processedwithinfive workingdays.

• TheBoardmaintainsandfollowspoliciesandproceduresinrelationtotheregistrationandlicensingsystem.

• Nobreachesofpoliciesand proceduresarereported.

• Achieved.

09


• Competency andsafe working practicesof tradespeople.

• Boardactivelyengageswithtradespeopleandindustrytoensure competentandsafeworkingpractices.

• TheBoardcompletesitsannualstakeholderengagement programme.

• 90%ofallauthorised tradespeoplecomplete ContinuedProfessional Developmenttrainingby 31Marchineachyear.

• CPDandregionalvisitscancelledin2020duetoCOVID-19.

• CPDcancelledin2020duetoCOVID-19.

• Identifyandtarget areasforenforcement.

• Minimumofsixtargeted operations.

• 75sitevisitseachyearto checkoncompliance.

• Sixtargeted operationscompleted.

• 82sitevisits.

• Consumer awarenessand confidence.

• Thepublicareaware of the importance of usingauthorised tradespeopleto performrestrictedwork.

• Onabiennialbasis,theBoard measuresthepublicawareness oftheneedtouseauthorised tradespeopletocarryout restrictedwork(commencing20/21).

• Achieved.Myreno.nzwaslaunched February2021.

• Thesystemisenablingconsumerconfidenceinthecompetencyoftradespeople.

• Abiennialsurveyofconsumersiscarriedoutmeasuring consumerconfidencein tradespeople(commencing20/21).

• Thesurveyis conducted at completionofapublicawarenesscampaignperiod.Campaign completionis mid-August2021,withsurveyfollowing.

• Complaints and discipline.

• Ensurecomplaintsregardingplumbing,gasfittingand drainlayingworkareresolvedfairlyandefficiently.

• Theaveragetimefor completionofdisciplinaryinvestigationsislessthan80workingdaysfromreceiptofcomplaint.

• Allegationsofoffencesare processedtoadecisionabout prosecutionwithin40workingdaysofreceiptoftheformal allegation.

• Disciplinarydecisions,includinganydecisiononpenalty,are releasedwithin40workingdaysofthehearing.

• Nodecisionsareoverturnedonappealduetoafailuretofollowagreedprocessesortheprinciplesofnaturaljustice.

• 40/43–93%.

• 14/18–78%.

• 26/31=84%.

• Twodecisionsunderappeal.

• Governance. • TheBoardhasrobuststrategicplanningprocessesthatidentifystrategiesforimprovingtheregistrationandlicensingsystem.

• TheBoardannuallyreviewsitsstrategicplanandidentifiesrisksandopportunitiesandstrategiesforachievingitsgoals.

• TheAnnualReportreports ontheimplementationof strategiestoachievethe Board’sstrategicgoals.

• Completed.

• Completed.

OUTPUTAGREEMENTCONT/...

10


• Undertakeanannualself-appraisaloftheBoard’sperformanceandprovideasummarytoMBIE.

• Thesummaryofthe self-appraisalidentifiesareaswhichareworkingwell,areasforimprovement,andtheactiontheBoardintendstotakeasaresult.

• DuetoconstraintsofCOVID-19andnumberofnewBoardMembersadecisionwasmadetodeferthisuntilthe2021-22year.

• ProvideMBIEwiththeBoard’sviewon membershipand succession.

• TheBoard’sviewshowsthecurrentskillsandexperienceofBoardMembersandidentifiesanygapsandproposalsfortheMinistertoconsiderinfutureappointmentrounds.

• Completed.

• Meetallobligationsunderrelevant legislation,includingreporting under the Plumbers,GasfittersandDrainlayersAct.

• Alllegislativeobligationsaremet.

• Legislativecompliancereportfor2020/21presentedtotheBoardinMay2021.

OUTPUTAGREEMENTCONT/...

11

REGISTRATIONSTATISTICSANDTRENDS

Plumbing Gasfitting Drainlaying

2016/17 217 102 57

2017/18 202 111 85

2018/19 233 138 100

2019/20 220 129 118

2020/21 226 145 180


2016/17 248 206 192

2017/18 219 126 181

2018/19 320 167 219

2019/20 323 158 167

2020/21 286 147 196


2016/17 2 0 0

2017/18 56 79 14

2018/19 60 83 33

2019/20 106 111 64

2020/21 84 86 52

CERTIFYING REGISTRATIONS

TRADESMANREGISTRATIONS

JOURNEYMANREGISTRATIONS

Holdingoneregistration Holdingtworegistrations Holdingthreeregistrations

8473 5402 1920

Thenumberofindividualsholdingone,twoorthreeregistrations

• RegistrationsissuedunderTTMRA:34• Personswhoseregistrationorlicencewascancelledorsuspendedduringthe2020/21period:4• NumberofpersonsregisteredorissuedwithalicencebytheBoardundertheElectricityAct1992:0• Breachesofpoliciesandprocedures:0non-complianceidentified.

0

20

40

60

80

100

120

2016/17 2017/18 2018/19 2019/20 2020/21


0

50

100

150

200

250

300

350

2016/17 2017/18 2018/19 2019/20 2020/21


0

50

100

150

200

250

2016/17 2017/18 2018/19 2019/20 2020/21


12

1

LICENSINGSTATISTICSANDTRENDS

2016/17 2017/18 2018/19 2019/20 2020/21

Plumbing 8394 9191 10048 10510 10676

Gasfitting 4282 4316 5489 5701 6015

Drainlaying 5351 5902 6753 7193 7914

AUTHORISATIONSISSUED

2016/17 2017/18 2018/19 2019/20 2020/21

P G D 1295 1553 2011 2354 2859

P G 2697 2820 3000 2870 2670

P D 1652 1760 1890 1904 1899

G D 2 3 9 9 10

Plumber 2749 2781 2810 3051 2902

Gasfitter 287 288 284 281 275

Drainlayer 2401 2439 2637 2730 2864

• Manylicenceholdersholdmultiplelicences.

• Forthe2020/21licensing year24,605authorisations wereissuedacrossthethreetrades.

• Fortheyearending31March 2021therewasan19%increase inthenumberofJourneyman authorisationsissued.

• Therehasbeena5%increasein the number of Trainee authorisationsissued.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016/17 2017/18 2018/19 2019/20 2020/21


13

1

LICENSING

Authorisations 2016/17 2017/18 2018/19 2019/20 2020/21

CertifyingPlumber 3501 3598 3797 3943 4077

CertifyingGasfitter 1577 1666 1804 1911 2024

CertifyingDrainlayer 2908 2941 3039 3119 3219

TradesmanPlumber 1733 1776 1931 1993 2000

TradesmanGasfitter 719 803 883 893 921

TradesmanDrainlayer 381 495 636 675 707

JourneymanPlumber 2 58 102 190 230

JourneymanGasfitter 0 77 143 228 261

JourneymanDrainlayer 0 14 41 97 122

LimitedCertificateTraineePlumber 2085 2383 2755 2768 2915

LimitedCertificateTraineeGasfitter 1518 1742 2045 2067 2190

LimitedCertificateTraineeDrainlayer 1300 1562 2036 2263 2825

Exemption-plumbingundersupervision 1250 1358 1410 1534 1390

Exemption-fittingofwaterheaters 2 2 3 3 2

Exemption-gasfittingundersupervision 559 510 561 550 569

Exemption-specificgasfittingequipment 27 21 21 21 24

Exemption-specificplumbingequipment 0 0 0 0 0

Exemption-drainlayingundersupervision 857 889 982 1024 1035

EmployerLicence 3 4 6 6 11

ProvisionalPlumberLicence 20 18 50 79 64

ProvisionalGasfitterLicence 11 7 26 31 13

ProvisionalDrainlayerLicence 4 1 19 15 6

TOTAL 18,457 19,925 22,290 23,410 24,605

Feetype (GSTinclusive)

Registration(perclass,pertrade) $375.00

Practisinglicence(perregistrationclass,pertrade) $90.00

Disciplinaryandprosecutionlevy $285.00

ThefeesinthebelowtableweresetinPlumbers,Gasfitters,andDrainlayers(FeesandDisciplinaryLevy)Notice2018andappliedfrom1January2019andremainthesameforthe2020/21licensingyear.

FEE STRUCTURE

STATISTICSANDTRENDS

14

EXAMINATIONSSTATISTICSANDTRENDS

2020/21 Candidatessittingexam Candidateswhopassed Passrate

Examination June November June November June November

CertifyingPlumbing 63 198 47 154 75% 78%

CertifyingGasfitting 40 91 37 73 93% 80%

CertifyingDrainlaying 43 103 43 81 100% 79%

TradesmanPlumbing 522 390 75%

TradesmanGasfitting 270 167 62%

TradesmanDrainlaying 324 232 72%








TradesmanDrainlaying 258 197 76%








TradesmanDrainlaying 220 157 71% 2017/18 Candidatessittingexam Candidateswhopassed Passrate





TradesmanPlumbing 202 235 142 193 70% 82%

TradesmanGasfitting 93 116 73 80 78% 69%

TradesmanDrainlaying 107 130 92 111 86% 85%

15

Complaintsmaybemadeaboutregisteredpersonsorthoseregisteredatthetimeof therelevantconduct.Complaintsmayalso bemadeaboutprovisionallicenceholders orthosewhoholdaprovisionallicenceatthetimeoftherelevantconduct,andpersonssubjecttoanorderoftheBoardunder Subpart1ofPart3oftheofthePlumbers,Gasfitters,andDrainlayersAct2006.A complaintmayresultinadisciplinary hearingbeforetheBoard.

• In2020-2021theBoardcompleted18prosecutionsundertheActwith 15invidualsbeingfoundguiltyofoffences.Thefollowingchargeswerelaid.

2016/17 2017/18 2018/19 2019/20 2020/21

75 83 64 99 72

Mattersthatcouldbecomplainedabout underSubpart1,Part3ofthePlumbers, Gasfitters,andDrainlayersAct2006;or mattersthatfellwithintheprosecution jurisdictionsetoutinsubpart2,Part3ofthe Act;orsomethingelsetheBoardcoulddeal with;orsomethingtheBoardcouldnothelp with.Thesemattersconstitutedanenquiry.

2016/17 2017/18 2018/19 2019/20 2020/21

213 291 226 189 110

2016/17 2017/18 2018/19 2019/20 2020/21

Plumbing 47 51 31 51 56

Gasfitting 24 19 30 41 40

Drainlaying 17 28 18 25 26

• In2020-2021,32registeredpeoplewerefoundguiltyof disciplinaryoffencesandthefollowingorderswereimposed bytheBoard.

• Somecomplaintswereaboutmorethanonetrade.

• Fiveyearcomplainttrend.

• Fiveyearenquirytrend.

COMPLAINTSANDDISCIPLINESTATISTICSANDTRENDS

Cancellation 3

Suspension 5

Training 5

Fine 24

Censure: 2

*Insomecasesmorethanoneorderwasimposed.

TheBoardhasafunctiontoinstitute prosecutionsagainstpersonsforthebreachofanyActorregulationrelatingtosanitaryplumbing,gasfittingordrainlaying.Part3,Subpart2setsoutanumberofoffenceprovisions.

Section 122 4

Section 123 24

Section 125 2

16

NickFleckneyChairperson16June2021

DianaKuhtz-CovichDeputyChairperson16June2021

FINANCIAL STATEMENTS

• TheBoardisresponsibleforthepreparationofthePlumbers,GasfittersandDrainlayersBoard’sfinancialstatementsandaccountabilityreport,andforthejudgementsmadeinthem.

• TheBoardhastheresponsibilityforestablishing,andhasestablished,asystemofinternalcontroldesignedtoprovidereasonableassuranceastotheintegrityandreliabilityof financialreporting.

• IntheBoard’sopinion,thesefinancialstatementsandaccountabilityreportfairlyreflectsthefinancialpositionandoperationsofthePlumbers,GasfittersandDrainlayersBoardfortheyearended31March2021.

STATEMENT OF RESPONSIBILITY

2217

FINANCIAL STATEMENTS

22 18

Notes 2021Actual 2021 Budget 2020Actual

REVENUEExaminationfees 514,810 420,000 423,803Interestreceived 46,271 40,000 122,970Licencefees 1,512,902 1,465,000 1,448,399

Registrationfees 426,109 389,520 382,387

Disciplinarylevy 1,374,282 1,170,000 1,197,978Offencesfee 863,834 735,000 753,038CPDrevenue - - 366,333Otherrevenue 2 442,188 145,000 182,079

TOTALREVENUE 5,180,396 4,364,520 4,876,987LESS:EXPENDITURE

Administration 3 2,994,140 3,272,374 3,315,773

Governance 264,485 350,000 275,917Examinations 406,586 255,000 316,942CPD - - 344,791Registrationandlicensing 373,179 400,820 374,263Complaintsanddiscipline 513,500 510,000 461,739Prosecutions 121,077 50,000 127,259

TOTALEXPENDITURE 4,672,967 4,838,194 5,216,684NETSURPLUS/(DEFICIT) 507,429 (473,674) (339,697)

Othercomprehensiverevenueandexpense - - -

TOTALCOMPREHENSIVE REVENUEANDEXPENSE

507,429 (473,674) (339,697)

Explanationsofmajorvariancesagainstbudgetareprovidedinnote21.Theaccompanyingnotesformpartofthesefinancialstatements.

STATEMENT OFCOMPREHENSIVEREVENUEANDEXPENSE

FORTHEYEARENDED31MARCH2021

19

Notes 2021Actual 2021 Budget 2020Actual

PUBLICEQUITY

Accumulatedfunds 4,785,774 3,804,671 4,278,345

TOTALPUBLICEQUITY 4,785,774 3,804,671 4,278,345

Representedby:ASSETS

CURRENT ASSETSCashandcashequivalents 5 1,322,481 1,800,000 1,823,746Accruedinterest 2,632 25,000 10,692Prepayments 64,470 55,000 83,493Receivables 6 268,904 270,000 228,340Investments 7 2,311,737 600,000 613,574TOTAL CURRENT ASSETS 3,970,224 2,750,000 2,759,845NON-CURRENT ASSETSInvestments 7 350,000 500,000 850,000Receivables 6 47,430 20,000 15,250Property,plantandequipment 8 46,655 47,000 66,079Intangibleassets 9 2,029,541 2,040,000 2,163,221TOTAL NON-CURRENT ASSETS 2,473,626 2,607,000 3,094,550

TOTAL ASSETS 6,443,850 5,357,000 5,854,395LIABILITIES

CURRENT LIABILITIESRevenueinadvance 10 904,360 850,000 807,723Payables 11 549,997 485,329 540,114Employeeentitlements 12 203,719 217,000 228,213TOTAL CURRENT LIABILITIES 1,658,076 1,552,329 1,576,050

TOTAL LIABILITIES 1,658,076 1,552,329 1,576,050

NET ASSETS 4,785,774 3,804,671 4,278,345

Explanationsofmajorvariancesagainstbudgetareprovidedinnote21.Theaccompanyingnotesformpartofthesefinancialstatements.

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2021

20

2021Actual 2021 Budget 2020Actual

BALANCE AT 1 APRIL 4,278,345 4,278,345 4,618,042

TOTALCOMPREHENSIVEREVENUE ANDEXPENSE

507,429 (473,674) (339,697)

BALANCE AT 31 MARCH 4,785,774 3,804,671 4,278,345

ExplanationsofmajorvariancesagainstbudgetareprovidedinNote21.Theaccompanyingnotesformpartofthesefinancialstatements.

2021Actual 2021 Budget 2020Actual

CASHFLOWSFROMOPERATINGACTIVITIES

Revenuesfeesandlevies 5,119,089 4,320,387 4,903,250

Interestreceived 54,331 25,692 163,625

Paymentstosuppliers (2,645,094) (2,524,544) (3,133,281)

Paymentstoemployees (1,783,992) (2,031,213) (1,941,020)GST(net) 127,604 13,939 (66,011)

NETCASHFROMOPERATINGACTIVITIES 871,938 (195,739) (73,437)

CASHFLOWSFROMINVESTINGACTIVITIES

Receiptsfromsaleofinvestments 1,463,574 1,463,574 3,995,265

Acquisitionofinvestments (2,661,737) (1,100,000) (1,463,574)Purchaseofproperty,plantandequipment (10,562) (9,044) (32,833)

Purchaseofintangibles (164,478) (182,537) (1,916,829)

NETCASHFROMINVESTINGACTIVITIES (1,373,203) 171,993 582,029

Netincrease(decrease)incashandcashequivalents (501,265) (23,746) 508,592

Cashandcashequivalentsatbeginningofyear 1,823,746 1,823,746 1,315,154

CASHANDCASHEQUIVALENTSATENDOFYEAR 1,322,481 1,800,000 1,823,746

TheGST(net)componenthasbeenpresentedonanetbasisasthegrossamountsdonotprovidemeaningfulinformationforfinancialstatementpurposesandtobeconsistentwiththepresentationbasisoftheotherprimaryfinancialstatements.

STATEMENTOFCHANGESINNETASSETS/EQUITY

STATEMENT OF CASH FLOWS



NOTES TO THE FINANCIAL STATEMENTS1. STATEMENTOFACCOUNTINGPOLICIES FORTHEYEARENDED31MARCH2021

Reportingentity ThePlumbers,GasfittersandDrainlayersBoard(“theBoard”)isconstitutedunderSection133ofthePlumbersGasfittersDrainlayersAct2006(“theAct”).TheBoardisabodycorporateundersection133(2)oftheActandisdomiciledandoperatesinNewZealand.

TheBoardischargedwithprotectingthehealthandsafetyofthepublicbymeansofregisteringandlicensingpersonsengagedintheprovisionofsanitaryplumbing, gasfittinganddrainlayingservices.TheBoardisanotforprofitorganisationandisprimarilyfundedbyrevenuefromlicences,registrationandexaminationfees,discipli-naryleviesandCPDrevenue.TheBoardisapublicbenefitentity.TheBoarddoesnotoperatewiththesolepurposeofmakingaprofitbuttoregulatetheplumbers,gasfittersanddrainlayersindustry.

ThefinancialstatementsforthePlumbers,GasfittersandDrainlayersBoardarefortheyearended31March2021andwereapprovedbytheBoardon16June2021.

Basisofpreparation Thefinancialstatementshavebeenpreparedonagoingconcernbasisandtheac-countingpolicieshavebeenappliedconsistentlythroughouttheyear.

StatementofcomplianceThefinancialstatementsofthePlumbersGasfittersandDrainlayersBoardhavebeenpreparedinaccordancewiththePlumbersGasfittersandDrainlayersAct2006whichincludetherequirementtocomplywithgenerallyaccepted accountingpracticeinNewZealand(NZGAAP).

ThesefinancialstatementscomplywithPBEaccountingstandards.TheyhavebeenpreparedinaccordancewithTier2PBEaccountingstandardsbecausethetotalex-penditureoftheBoardislessthanthirtymilliondollarsperannum.

Measurementbase Thefinancialstatementshavebeenpreparedonahistoricalcostbasisexceptwheremodifiedbytheimpairmentofreceivablestofairvalue.

Functionalandpresentationcurrency ThefinancialstatementsarepresentedinNewZealanddollarsandallvaluesareroundedtothenearestdollar.ThefunctionalcurrencyoftheBoardisNewZealanddollars(NZ$).

Revenue Revenueismeasuredatthefairvalueofconsiderationreceivedorreceivable. Interestrevenueisrecognisedusingtheeffectiveinterestmethod.Interestincomeonanimpairedfinancialassetisrecognisedusingtheoriginaleffectiveinterestrate.

Thespecificaccountingpoliciesforsignificantrevenueitemsareexplainedbelow:

ExchangetransactionsRevenuefromexaminationfeesandlicencefeesarerecognisedasrevenue atthetimetheapplicationsareprocessedwiththeexceptionbeingfees processedinthemonthsofFebruaryandMarchforthefollowingyear’slicencesandexaminations,thosetransactionsaretreatedasfeesinadvanceandtherevenueisrecognisedinthenextfinancialyear.Registrationfeesarerecognisedasrevenuewhentheapplicationisprocessed.

SIGNIFICANT ACCOUNTING POLICIES

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22

NonexchangetransactionsDisciplineleviesandoffencesfeesarerecognisedasrevenueatthetimethe paymentisreceived.Finesandcostsarerecognisedasrevenuewhenaninvoiceisraised.

Leasesclassification Leasesthatdonottransfersubstantiallyalloftherisksandrewardsincidentaltoowner-shipofanassettotheBoardareclassifiedasoperatingleases.Leasepaymentsunderanoperatingleasearerecognisedasanexpenseonastraight-linebasisoverthetermofthelease.

CashandcashequivalentsCashandcashequivalentsincludeanycashonhand,depositsheldoncallwiththebankandshort-termdepositswithoriginalmaturitiesofthreemonthsorless.

Debtorsandotherreceivables Debtorsandotherreceivablesareinitiallymeasuredatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethodlessanyprovisionforimpairment.

ImpairmentofareceivableisestablishedwhenthereisobjectiveevidencethattheBoardwillnotbeabletocollectamountsdueaccordingtotheoriginaltermsofthereceivable.Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterintobankruptcy,anddefaultinpaymentsareconsideredindicatorsthatthedebtisimpaired.

Theamountoftheimpairmentisthedifferencebetweentheasset’scarryingamountandthepresentvalueoffuturecashflows,discountedusingtheoriginaleffective interestrate.Thecarryingamountoftheassetisreducedthroughtheuseofan allowanceaccountandtheamountofthelossisrecognisedasanexpense.Whenthereceivableisuncollectible,itiswrittenoffagainsttheallowanceaccountforreceivables.

InvestmentsInvestmentsinbankdepositsareinitiallymeasuredatfairvalueplustransactioncosts.Afterinitialrecognitioninvestmentsinbankdepositsaremeasuredatamortisedcostusingtheeffectiveinterestmethod.

Thefairvalueofinvestmentsapproximatesthecarryingamountdisclosedinthe financialstatements.AteachbalancedatetheBoardassesseswhetherthereisanyobjectiveevidencethataninvestmentisimpaired.

Property,plantandequipment TheBoardreviewsthefairvalueofassetsandthedepreciationratesateachbalancedatesothatthevalueintheaccountsisnotmateriallydifferentfromfairvalue.Itemsofpropertyplantandequipmentcostingmorethan$500areinitiallycapitalisedandrecordedatcost.

Property,plantandequipmentareshownatcost,lessanyaccumulated depreciationandimpairmentlosses.

Thecostofanitemofproperty,plantandequipmentisrecognisedasanassetonlywhenitisprobablethatthefutureeconomicbenefitsorservicepotentialassociatedwiththeitemwillflowtotheBoardandthecostoftheitemcanbemeasuredreliably.

Gainsandlossesondisposalsaredeterminedbycomparingproceedswiththecarryingamountoftheasset.Gainsandlossesondisposalsarereportednetinthesurplusordeficit.

Depreciationisprovidedonastraight-linebasisonallproperty,plantandequipmentatratesthatwillwriteoffthecost(orvaluation)oftheassetstotheirestimatedresidualvaluesovertheirusefullives.


Theusefullivesandassociateddepreciationratesofmajorclassesofassetshavebeenestimatedasfollows:

• Leaseholdimprovements-overthetermofthelease• Furnitureandofficeequipment-tenyears-(10%)• Computersandelectronicequipment-fouryears-(25%)• Motorvehicles-fouryears(25%)

Intangibleassets Thedatabaseiscapitalisedonthebasisofcostsincurredindevelopmentbyoutsidesuppliers.

Stafftrainingcostsarerecognisedasanexpensewhenincurred.

Costsassociatedwithmaintainingcomputersoftwarearerecognisedasanexpensewhenincurred.

CostsassociatedwithdevelopmentandmaintenanceoftheBoard’swebsiteare recognisedasanexpensewhenincurred.

Thecarryingamountofanintangibleassetwithafinitelifeisamortisedona straight-linebasisoveritsusefullife.Amortisationbeginswhentheassetis availableforuseandceasesatthedatethattheassetisderecognised.The amortisationchargeforeachperiodisrecognisedinthesurplusordeficit.

Theusefullivesandassociatedamortisationratesofthedatabaseandwebsitehavebeenestimatedasfollows:

• Newdatabase-eightyears–12.5%.BasedontheenvironmenttheBoardoperatesinandtheprocessesthedatabasehandlesanexpectedlifeofthenewdatabasewasconsideredtobeeightyears

• Website-fouryears-25%

CreditorsandotherpayablesCreditorsandotherpayablesareinitiallymeasuredatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

EmployeeentitlementsTheBoardhasnoemployeeentitlementswhichspangreaterthan12months. EmployeeentitlementsthattheBoardexpectstobesettledwithin12monthsofbalancedatearemeasuredatundiscountednominalvaluesonaccruedentitlementsatcurrentratesofpay.

Theseincludesalariesandwagesaccrueduptobalancedate,annualleaveearnedbutnotyettakenatbalancedate.Theseentitlementsareclassifiedasacurrentliability.

SuperannuationschemesEmployercontributionstoKiwisaverareaccountedforasadefinedcontributionsuperannuationschemeandarerecognisedasanexpenseinthesurplusordeficitasincurred.

ProvisionsTheBoardrecognisesaprovisionforfutureexpenditureofuncertainamountortimingwhenthereisapresentobligation(eitherlegalorconstructive)asaresultofapastevent,itisprobablethatexpenditurewillberequiredtosettletheobligationandareliableestimatecanbemadeoftheobligation.

Provisionsaremeasuredatthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligationusingadiscountratethatreflectsthecurrentmarketassessmentsofthetimevalueofmoneyandthespecificrisksoftheobligation.

Changesinprovisionsarerecognisedasexpensesinthesurplusordeficitasincurred.Therearenoprovisionsmadeinthesefinancialstatements.


23

24

GoodsandServicesTax(GST)AllitemsinthefinancialstatementsarepresentedexclusiveofGST,exceptfor receivablesandpayables,whicharepresentedonaGSTinclusivebasis.WhereGSTisnotrecoverableasinputtaxthenitisrecognisedaspartoftherelatedassetorexpense.

ThenetGSTpaidto,orreceivedfrom,theIRDincludingtheGSTrelatingtoinvestingandfinancingactivitiesareclassifiedasanoperatingcashflowinthestatementofcashflows.

Incometax TheBoardisaregisteredcharityandisthereforenotsubjecttoincometax. Accordingly,nochargeforincometaxhasbeenprovidedfor.

BudgetfiguresThebudgetfigureswereapprovedbytheBoardinMarch2020 andwerecalculatedonaconsistentbasiswithpreviousyears.ThebudgetwaspreparedinaccordancewithPBEaccountingstandards.

CriticalaccountingestimatesandassumptionsInpreparingthesefinancialstatementstheBoardhasmadeestimatesandassumptionsconcerningthefuture.Theseestimatesandassumptionsmaydifferfromthesubsequentactualresults.Estimatesandassumptionsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors,includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Theestimatesandassumptionsthathaveasignificantriskofcausingamaterialadjustmenttocarryingamountsofassetsandliabilitieswithinthenextfinancialyearareaddressedbelow.

TheBoardreviewstheusefullivesandresidualvaluesofitsproperty,plantand equipmentandintangibleassets.

Assessingtheappropriatenessofusefullifeandresidualvalueestimatesofproperty, plantandequipmentandintangibleassetsrequirestheBoardtoconsideranumberoffactorssuchasthephysicalconditionoftheasset,expectedperiodofuseoftheassetbytheBoardandexpecteddisposalproceedsfromthefuturesaleoftheasset.

Anincorrectestimateoftheusefullifeorresidualvaluewillimpactonthedepreciationandamortisationexpenserecognisedintheyear,andcarryingamountoftheassetinthestatementoffinancialposition.

TheBoardminimisestheriskofthisuncertaintyby:

-physicalinspectionofassets-assetreplacementprogrammes-reviewofthesecond-handmarketpricesforsimilarassets-analysisofpriorassetsales.

CriticaljudgementsinapplyingaccountingpoliciesManagementhasexercisedthefollowingcriticaljudgementsinapplyingtheBoard’s accountingpoliciesfortheyearended31March2021.

Determiningwhetheraleaseagreementisafinancingoroperatinglease requiresjudgementastowhethertheagreementtransferssubstantiallyalltherisksandrewardsoftheownershiptotheBoard.

Judgementisrequiredonvariousaspectsthatinclude,butarenotlimitedto,thefair valueoftheleasedasset,whetherornottoincluderenewaloptionsintheleasetermanddetermininganappropriatediscountratetocalculatethepresentvalueoftheminimumleasepayments.Classificationasafinanceleasemeanstheassetisrecognisedinthestatementoffinancialpositionasproperty,plantandequipment,whereasforanoperatingleasenosuchassetisrecognised.TheBoardhasexerciseditsjudgementonthe appropriateclassificationofequipmentleasesandhasdeterminedtheBoardcurrentlyhasnofinanceleasesinplace.


2021Actual 2020Actual

Otherrevenuefromexchangetransactions

Miscellaneousrevenue 60,611 22,940

Totalotherrevenuefromexchangetransactions 60,611 22,940

Otherrevenuefromnon-exchangetransactions

Finesandcosts 381,577 159,139

Totalotherrevenuefromnon-exchangetransactions 381,577 159,139

TOTALOTHERREVENUE 442,188 182,079

2. OTHERREVENUE

Notes 2021Actual 2020Actual

Auditfees 29,474 28,892

Depreciationandamortisationexpense 8,9 328,144 105,762

Lossondisposaloffixedassets - 48,964

Personnelcosts 4 1,759,498 1,960,440

Legalexpenses 61,709 74,528

Computerexpenses 98,025 112,083

Rent 147,269 135,727

Communicationsandconsultation 240,353 446,277

Otheradministrationexpenses 329,668 403,100

TOTALADMINISTRATIONCOSTS 2,994,140 3,315,773


Salariesandwages 1,749,515 1,904,556

Employercontributionstodefinedcontributionplans 34,477 36,464

Increaseinemploymententitlements (24,494) 19,420

TOTAL PERSONNEL COSTS 1,759,498 1,960,440

EmployercontributionstodefinedcontributionschemesareforKiwisaveronly.Allemployeesareonsalaryonlycontractsanddonotreceiveanyotherbenefitseitherduringoroncessationoftheircontracts.


Cashonhandandatbank 1,322,481 219,038

Termdepositwithmaturitieslessthan3months - 1,604,708

TOTALCASHANDCASHEQUIVALENTS 1,322,481 1,823,746

Thecarryingvalueofcashatbankandtermdepositsapproximatestheirfairvalue.

3. ADMINISTRATION

4. PERSONNELCOSTS

5. CASHANDCASHEQUIVALENTS

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26

ExceptformiscellaneousitemsandrecoveriesfromdisciplineproceedingsallotherservicesareprovidedbytheBoardonlywhenapaymentisrecieved.Allreceivablesarefromdisciplinaryfinesandcostsandmanyarebeingpaidbywayofinstalmentsbeyondoneyearwhichshowsinthenon-currentreceivables.


Currentreceivables 364,672 285,180Less:Provisionforuncollectability (95,768) (56,840)Totalcurrentreceivables 268,904 228,340

Non-current receivables 47,430 15,250Less:Provisionforuncollectabity - -

Totalnon-currentreceivables 47,430 15,250

Totalreceivables 316,334 243,590

Fairvalue Thecarryingvalueofreceivablesapproximatestheirfairvalue.

Impairment Movementsintheprovisionforimpairmentofreceivablesareasfollows:


Balanceat1April 56,840 62,940

Theprovisionsincreasemadeduringtheyear 75,398 17,900

Receivableswrittenoffduringtheyear (36,470) (24,000)

Balanceat31March 95,768 56,840


Current portion

Termdeposits 2,311,737 613,574

Totalcurrentportion 2,311,737 613,574

Non-current portion Termdeposits 350,000 850,000

Totalnon-currentportion 350,000 850,000

Totalinvestments 2,661,737 1,463,574

Therewerenoimpairmentprovisionsmadefortermdeposits.

6. RECEIVABLES

7. INVESTMENTS

Movementsofeachclassofpropertyplant&equipmentisasfollows:

Cost

Computers andelectronics

Officeequipment

and furniture

Motor

vehicles

Total

Balanceat1Apr2019 162,974 100,488 20,000 283,462

Additions 32,833 - - 32,833

Disposals (49,339) - - (49,339)

Balanceasat31Mar2020 146,468 100,488 20,000 266,956

Balanceat1Apr2020 146,468 100,488 20,000 266,956

Additions 10,562 - - 10,562

Disposals - - - -

8.PROPERTYPLANTANDEQUIPMENT

Balanceasat31Mar2021 157,030 100,488 20,000 277,518

Accumulateddepreciation

Balanceat1Apr2019 81,118 72,508 15,000 168,626

Depreciationexpense 29,637 8,921 5,000 43,558

Disposals (11,307) - - (11,307)

Balanceasat31Mar2020 99,448 81,429 20,000 200,877

Balanceat1Apr2020 99,448 81,429 20,000 200,877

Depreciationexpense 23,405 6,581 - 29,986

Disposals - - - -

Balanceasat31Mar2021 122,853 88,010 20,000 230,863

Carryingamounts

At 31 Mar 2020 47,020 19,059 - 66,079

At 31 Mar 2021 34,177 12,478 - 46,655

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Cost Database Website WIP Total

Balanceat1April2019 985,392 24,700 283,420 1,293,512

Additions 1,916,829 - - 1,916,829

TransferofWIPtonewdatabase 283,420 - (283,420) -

Disposals (964,878) - - (964,878)

Balanceat31March2020 2,220,763 24,700 - 2,245,463

Balanceat1April2020 2,220,763 24,700 - 2,245,463

Additions 164,478 - - 164,478

Disposals - - - -

Balanceasat31March2021 2,385,241 24,700 - 2,409,941

Accumulatedamortisation

Balanceat1April2019 949,284 24,700 - 973,984

Amortisation 62,204 - - 62,204

Disposals (953,946) - - (953,946)

Balanceasat31March2020 57,542 24,700 - 82,242

Balanceasat1April2020 57,542 24,700 - 82,242

Amortisation 298,158 - - 298,158

Disposals - - - -

Balanceasat31March2021 355,700 24,700 - 380,400

Carryingamounts

At 31 March 2020 2,163,221 - - 2,163,221

At 31 March 2021 2,029,541 - - 2,029,541

TherearenorestrictionsoverthetitleoftheBoard’sintangibleassets,norareanyintangibleassetspledgedassecurity.

9. INTANGIBLEASSETS


Feesinadvance 904,360 807,723

TOTALREVENUEINADVANCE 904,360 807,723

10.REVENUEINADVANCE

11.CREDITORSANDOTHERPAYABLES


PayablesunderexchangetransactionsCreditors 211,609 336,120

Accruedexpenses 54,723 47,933

TOTALPAYABLESunderexchangetransations 266,332 384,053Payablesundernon-exchangetransactions

Taxespayable(GSTandPAYE) 283,665 156,061

TOTALPAYABLESundernon-exchangetransactions 283,665 156,061

TOTAL PAYABLES 549,997 540,114

Creditorsandotherpayablesarenon-interestbearingandarenormallysettledon30-dayterms.Therefore,thecarryingvalueofcreditorsandotherpayablesapproximatestheirfairvalue.


Accruedsalaries 52,059 49,353Annualleave 151,660 178,860

TOTAL EMPLOYMENT ENTITLEMENTS 203,719 228,213

12.EMPLOYEEENTITLEMENTS

14.TRANSACTIONSWITHKEYMANAGEMENT PERSONNEL

Relatedpartydisclosureshavenotbeenmadefortransactionswithrelatedpartiesthatarewithinanormalsupplierorclient/recipientrelationship,ontermsandconditionnomoreorlessfavourablethanthosethatitisreasonabletoexpecttheBoardwouldhaveadopted,indealingwiththepartyatarm’slengthinthesamecircumstances.Further,transactionswithotherGovernmentagencies(forexample,GovernmentdepartmentsandCrownentities)arenotdisclosedasrelatedpartytransactions,whentheyareconsistentwiththenormaloperatingarrangements,betweenGovernmentagenciesandundertakenonthenormalsupplierorclient/recipientrelationshipontermsandconditions.

Relatedpartytransactionsrequiredtobedisclosed:Therehavebeennomaterialrelatedpartytransactions thisyear.

13.RELATEDPARTYTRANSACTIONS

2021Actual Actual2020

Boardmembers 179,409 170,903Full-timeequivalentmembers 1.51 1.39LeadershipteamRemuneration 413,279 416,733

Full-timeequivalentmembers 2 2TOTAL KEY MANAGEMENT PERSONNEL REMUNERATION 592,688 587,636TOTALFULL-TIMEEQUIVALENTPERSONNEL 3.51 3.39

15.BOARDMEMBERREMUNERATIONBoardmembers’remunerationpaidorpayabletoeachBoardmemberduringtheyearforgovernance:

2021 2020

DeborahCranko 6,504 5,160

MartinDeGouw 6,988 4,676

KenDouglas 4,246 6,934

NickFleckney(Deputychairended14.8.20,ChairAudit&Riskended14.8.20,BoardChairbegan15.8.20)

21,189 14,042

TofaSuafoleGush(Began1.10.20) 3,291 -

BethHealy(Began1.10.20) 5,536 -

PeterJackson(BoardChair)ended16.9.19 - 42,281

DianaKuhtz-Covich(Deputychairbegan15.8.20,ChairAudit&Riskbegan15.8.20) 10,623 6,961

CraigO’Connell(ChairAudit&Riskended16.9.19,BoardChairbegan16.9.19 ended14.8.20)

7,879 24,216

SueSimons 4,515 3,064

ColleenUptonended31.8.20 1,828 5,483

Barry Willcox 6,665 6,450

Ming-chun Wu (Began 1.10.20) 4,408 -

TOTALBOARDREMUNERATION 83,672 119,267

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Employeeremuneration Totalremunerationpaidorpayable:

2021 2020

$100,000-$109,999 1 2

$110,000-$119,999 - 2

$120,000-$129,999 3 1

$140,000-$149,999 1 1

$270,000-$279,999 1 1

TheBoardhaseffecteddirectors’andofficers’liabilityandprofessionalindemnityinsurancecoverduringthefinancialyearinrespectoftheliabilityorcostsofboardmembersandemployees.Noboardmembersreceivedcompenationorotherbenefitsinrelationtocessation.(2020-2021$nil)

Therehavebeennosignificantpostbalancedateevents.

Contingentliabilities Therearenoknowncontingentliabilitiesas31March2021(2020Nil).

Contingentassets Therearenoknowncontingentassetsasat31March2021(2020Nil).

16.EVENTSAFTERTHEBALANCEDATE

17. CONTINGENCIES

Boardmembers’remunerationpaidorpayabletoeachBoardmemberduringtheyearfordisciplinefunctions:

2021 2020

DeborahCranko 8,788 5,671

MartinDeGouw 7,686 1,223

KenDouglas 10,105 5,859

NickFleckney(Deputychairended14.8.20,ChairAudit&Riskended14.8.20,BoardChairbegan15.8.20)

22,454 5,723

TofaSuafoleGush(Began1.10.20) 968 -

BethHealy(Began1.10.20) 1,075 -

PeterJackson(BoardChair)endedon16.9.19 - 2,949

DianaKuhtz-Covich(Deputychairbegan15.8.20,ChairAudit&Riskbegan15.8.20)

16,018 7,256

CraigO’Connell(ChairAudit&Riskfinished16.9.19,BoardChairbegan16.9.19ended14.8.20)

9,323 14,852

Sue Simons 5,886 1,290ColleenUptonFinished31.8.20 - 3,588

Barry Willcox 13,438 3,225

Ming-chun Wu (Began 1.10.20) - -

TOTALREMUNERATIONFORDISCIPLINEFUNCTIONS 95,741 51,636

TOTALBOARDREMUNERATION 179,413 170,903

18.FINANCIALINSTRUMENTS

OnMarch112020,theWorldHealthOrganisationdeclaredtheoutbreakofCoronavirus(COVID-19)apandemic.

Asnotedinthefinancialstatementsforthe2019-2020yeartherewaslittleimpactonoperationsastheofficeswerefullystaffeduntil26March2020.

AfterthatdateallofthestaffworkedfromhomeuntilmidtolateMaywiththeexceptionbeingfourofthelicencingandregistrationstaffwhoworkedintheofficeprocessinglicences.

TheexpectedreductioninrevenuedidnotoccurapartfromnorevenuebeingreceivedfromCPD.CPDwascancelledduetothelockdownandtheuncertaintyaroundwhenitwouldbelifted.

19.COVID-19IMPACT

Financialinstrumentcategories

Thecarryingamountsoffinancialassetsandliabilitiesineachofthefinancialinstrumentcategoriesareasfollows:


Financialliabilitiesmeasuredatamortisedcost

Payables(excludingdeferredrevenue,taxespayableandgrants 266,332 384,053

receivedsubjecttoconditions)

Totalfinancialliabilitiesmeasuredatamortisedcost 266,332 384,053

Loansandreceivables

Cashandcashequivalents 1,322,481 1,823,746

Receivables 316,334 243,590

Investments–termdeposits 2,661,737 1,463,574

Totalloansandreceivables 4,300,552 3,530,910

20.STATEMENTOFCOMMITMENTSASAT31MARCH2021Capitalcommitmentsandnon-cancellableoperatingleases

1. TheBoardhasaleasefortheofficespremisesat70theTerrace,Wellington.Theleaseisfortwelveyearsbeginningfrom1October2016whentheBoardoccupiedfloor8.Theannualrentis$147,100.

2. TheBoardhasacurrentleaseforphotocopierswhichwasnegotiatedduringtheyearwiththefirstpaymenton2August2020andthefinalpaymenton2October2023.Theannualrentalis$21,900plusGST.

3. Thereisacommitmenttoenhancingandmaintainingthedatabaseof$98,321inthe2021-2022year.

2021 2020

non-cancellablelease

Notlaterthan1year 267,322 349,459

Laterthan1yearandnotlaterthan2years 169,001 176,659

Laterthan2yearsandnotlaterthan5years 454,077 480,713

Laterthan5years 367,751 514,852

1,258,151 1,521,683

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21. EXPLANATIONOFSIGNIFICANTVARIANCES AGAINSTBUDGET

STATEMENT OF

COMPREHENSIVEREVENUEANDEXPENSE


Revenue

The$815,876increaseinrevenuerepresentsthebulkofthe$981,103variancebetweenthebudgetedlossof$473,674andtheactualsurplusof$507,429.Everyrevenuestreamhascomeinoverbudgetwhichwassetonaconservativebasis.Themajorvariancesare:

Examinations

Theactualrevenueof$514,810wasmorethanthebudgetof$420,000by$94,810.Thebudgetwassetbasedonthenumberswhosatin2019-2020.

Licencefees

Theactualof$1,512,902was$47,902abovethebudgetof$1,465,000.Therevenuefromlicencefeeswasuponbudgetduetoincreasednumbersoflicencesissuedduetotheon-goinghighdemandintheconstructionsector.

Disciplineleviesandoffencesfees

DisciplineLeviesof$1,374,282andOffencesfeesof$863,834aretreatedasrevenueuponcollectionandcombinedtheyare$333,116abovebudget.Thisisaresultofthemajorincreaseinthenumbersofthetradelicencingbefore31March2021.

Otherrevenue

Theactualof$442,188was$297,188abovebudget.Thebulkofthisincreasewasfromfinesandcosts.Weinvoiced$381,577forfinesandcostsimposedfromdisciplinaryhearingswhichwerebudgetedat$145,000avarianceof$236,577.Thiswasacombinationofthelargenumberofhearingsheldduringtheyearandalsosomeverylargepenaltiesimposedduetotheseriousnessofsomeofthecomplaints.

Expenditure

Thetotalexpenditureof$4,672,967was$165,227belowthebudgetof$4,838,194.Totaladministrationexpenseswere$278,234underbudget.Thiswasduemainlysalariesbeing$217,000underbudgetassalaryincreasesexpectedinApril2020werecancelledduetotheCovid19situationandalsoonestaffmemberresignedandnotreplacedafterthebudgetwasset.

Thiswasoffsetbyprosecutioncostsbeinghigherthanbudgetedby$71,077duetothelargenumberofprosecutions.Examinationexpenseswere$151,586abovebudgetduetothehighnumberofcandidateswhosat.

Netsurplus/deficit

Thenetsurplusof$507,429waswellabovethebudgeteddeficitof$473,674duetotheunexpectedincreaseacrossallrevenuestreamsplustotalexpenditurebeing$165,227underbudget.

Totalassets

Totalassetsof$6,443,850are$1,086,850abovethebudgetof$5,357,000budgetmainlyduehigheramountsofcashandinvestmentsheldatbalancedate.Thiswasaresultofthe2020-2021revenueitemsbeingabovebudgetandthenumberof2021-2022licencespaidby31March2021beingmuchhigheralso.

Totalliabilities

Totalliabilitiesof$1,658,076were$105,747morethanthe$1,552,329budgetedduetotherevenueinadvancebeing$54,360higherthanbudgetedandGSTpayablebeing$118,488higherduetothehigherthanexpectedrevenueinMarch2021.Thiswasoffsetbycreditorsbeinglessthanbudget.

Thenetequityof$4,785,774was$981,103abovethebudgeted$3,804,671fortheyearasexplainedinthepriorexplanations.

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

Disciplineprocess

Revenue

Disciplinelevy 1,374,282

Finesandcostsdiscipline 338,130 1,712,412

Expenditure

Directexpenditure 513,500

Allocatedoverheads 1,065,016 1,578,516

Surplusfor2020-2021year 133,896

Balancebroughtforwardfrom31.3.20 137,988

Balancetocarryforwardtofutureyears 271,884

Offencesprosecutions

Revenue

Offencesfees 863,834

Finesandcostsoffences 29,585 893,419

Expenditure

Directexpenditure 121,077

Allocatedoverheads 510,369 631,446Surplusfor2020-2021year 261,973Balancebroughtforwardfrom31.3.20 201,343

Balancetocarryforwardtofutureyears 463,316

MEMORANDUMACCOUNTSFORFUTUREPROCESSESAS AT 31 MARCH 2021

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2020/2021Actual Approvedbudget 2019/2020Actual

REVENUE

Examinationfees 514,810 420,000 423,803

Interestreceived 46,271 40,000 122,970

Licensefees 1,512,902 1,465,000 1,448,399

Registrationfees 426,109 389,520 382,387

Disciplinelevy 1,374,282 1,170,000 1,197,978

ProsecutionLevies 863,834 735,000 753,038

CPDrevenue - - 366,333

Otherrevenue 442,188 145,000 182,079

TOTALREVENUE 5,180,396 4,364,520 4,876,987

EXPENDITURE

Disciplinedirectexpenditure 513,500 510,000 461,739

Disciplineallocatedoverheads 1,065,016 1,189,775 1,269,426

Totaldiscipline 1,578,516 1,699,775 1,731,165

Examinationsdirectexpenditure 406,586 255,000 316,942

Examinationsallocatedoverheads 63,845 71,322 211,589

Totalexaminations 470,431 326,322 528,531

Licensingdirectexpenditure 320,536 339,550 675,305

Licensingallocatedoverheads 1,169,130 1,306,088 1,192,008

Totallicensing 1,489,666 1,645,638 1,867,313

Offencesdirectexpenditure 121,077 50,000 127,259

Offencesallocatedoverheads 510,369 570,153 671,336

Totaloffences 631,446 620,153 798,595

Registrationsdirectexpenditure 42,308 31,750 112,920

Registrationsallocatedoverheads 460,600 514,556 178,160

Totalregistrations 502,908 546,306 291,080

TOTALEXPENDITURE 4,672,967 4,838,194 5,216,684

TOTALCOMPREHENSIVEREVENUE ANDEXPENSES

507,429 (473,674) (339,697)

SignedonbehalfoftheBoard

NickFleckney DianaKuhtz-Covich Chairperson DeputyChairperson 16June2021 16June2021

STATEMENTOFCOMPREHENSIVEREVENUEAND EXPENSEWITHOVERHEADSINCORPORATED


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