Annual Report 2017-2018
A concept image of CRL’s Karangahape Station
Contents EXECUTIVE REPORT
CRLL Board
4-5 7
PROJECT OVERVIEW Auckland’s Transport Environment
10
Project Objectives
11
Project Benefits
12-13
Project Delivery
14 16-17
Progress Highlights
18-19
Sustainability
20-21
Heritage Health and Safety CRLL as a Good Employer Engagement
22 24-25 27
PROJECT OVERVIEW
Statement of Performance
EXECUTIVE REPORT
Foreword
28-29
FINANCIAL 32
Statement of Responsibility
33
Statement of Financial Performance
35
Statement of Financial Position
36
Statement of Changes in Equity
37
Statement of Cash Flows
38
Notes to the Financial Statements Director’s Interests Audit Report
FINANCIAL
Corporate Directory
39-50 51 52-55
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
FOREWORD
Welcome to the inaugural annual report of City Rail Link Limited (CRLL), which commenced operations on 1 July 2017. When the New Zealand Government and Auckland Council agreed to jointly fund the City Rail Link (CRL) project, it signalled to all of New Zealand that building this transformational project is fundamental to meeting the demands of Auckland’s population and transport growth and moving the economy forward. In the past year we have covered a lot of ground. As we close our first year of operations as a new organisation, we reflect on the journey that the past year has been and the successes and
of and preparation for the engineering feat that is the weight
challenges we have faced as we strive to deliver a project that
transfer of the Category 1 listed Chief Post Office building.
meets the needs of our sponsors and a growing Auckland.
The Mt Eden C6 contract for stormwater diversion is also
Progress on the CRL – which started construction in 2015 –
underway.
hasn’t stopped while CRLL has been in formation. Business as
We are always mindful that the construction of the CRL is
usual to deliver on the project has continued at the same time
taking place in the middle of busy urban environments and
as we have done a great deal of work to restructure and create
that it is creating significant change for Auckland. We take
a single entity and identity. Following the departure of Chris
our responsibility to be a good neighbour and keep the city
Meale, CRL’s inaugural project director, we have also recruited a
thriving very seriously and we’ve been working hard to take
CEO to deliver on our Statement of Intent and our Statement of
Aucklanders and our local residents, businesses and visitors
Performance Expectations.
along on this journey of transformation.
Our programme for delivery has been challenged in the face of
During the past 12 months we’ve worked closely with
a dramatically changing market. Infrastructure pipelines are at
contractors, Auckland Council, the business community
an unprecedented level to cope with exponential growth both
and residents to find innovative ways to manage the impacts,
here and overseas, and capacity to deliver the work is stretched.
keep Auckland operating as usual and, importantly, keep
Locally, this has been exacerbated by financial difficulties within
people safe.
the construction industry, which have seen the withdrawal of a preferred bidder for our largest contract package (C3 – stations and tunnels). However, in the face of an extremely difficult market climate, CRLL has worked very hard to remain competitive and attractive to do business with, and we now have two world-class consortia with a wealth of experience shortlisted to deliver this major contract. We remain on track to have the CRL operational by 2024.
4
Campaigns like ‘Eat Albert Street’ and ‘Wednesdays on Wellesley’ have proven successful ways to encourage people to participate in the activation of changed spaces throughout the city. We are also proud that CRLL is leading the way in New Zealand to deliver sustainable infrastructure. The Infrastructure Sustainability Council of Australia sets the benchmark for designing, building and operating sustainable infrastructure. The
Our construction programme has made significant progress
CRL project is currently the only New Zealand infrastructure
in the past year. Highlights of that programme have been the
initiative that holds a ‘Leading’ rating under its framework for
start of bulk excavation and construction of the first tunnel box
Infrastructure Sustainability, and we couldn’t be any prouder of
sections on Albert Street and completing the structural support
the work we are doing to set the standard in this space.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
EXECUTIVE REPORT
Building this transformational
We’re a world-first in integrating cultural values within that framework, we’re targeting
project is fundamental to
zero waste to landfill, we’re focused on measuring and reducing our carbon footprint and
meeting the demands of Auckland’s population and transport growth and moving the economy forward.
we’re committed to delivering better social outcomes through our procurement models. Our challenge in the next 12 months is to build on the work we have done in the past year and push ourselves to achieve even more in our delivery, procurement, communications and engagement and sustainability programmes. The health and safety of our workers and the public will always remain our number one priority. By the end of the next financial year all of our contracts will have been let, including our largest contracts for constructing stations and tunnels (C3) and delivering all our underground rail systems (C7). We’ll be part of recently formed construction alliances to deliver these significant works collaboratively and will continue to work with our other partners on the ‘design and construct’ contracts to deliver the project in full. Construction across the city will be unprecedented as the remaining CRL contracts come on stream, and our challenge will be to continue to bring the city along with us as we get Auckland on track to a better future. Lastly, we acknowledge that the achievements of the last year reflect the achievements of many current and former staff. In this regard, we would particularly like to acknowledge Chris Meale as both the initial project leader within Auckland Transport and the first chief executive of CRLL, who guided the project through its establishment phase prior to his retirement.
Sean Sweeney
Sir Brian Roche
Chief Executive Officer
Board Chair
City Rail Link Limited
City Rail Link Limited 5
Secant piles driven into Lower Queen Street
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CRLL BOARD
Chair - Sir Brian Roche Sir Brian is involved with a number of boards in the public and private sectors. Prior to his involved in a number of infrastructure projects. He has a Bachelor of Commerce and Administration from Victoria University of Wellington and is a Fellow of the Chartered Accountants Australia and New Zealand.
Directors
EXECUTIVE REPORT
governance roles he was the Chief Executive of the New Zealand Post Group. He has been
Karen Jordan immigrated to New Zealand in 2015 from the UK, where she had been with the Ministry of Defence as Director of Contract Management, responsible for improving capability in a multi-billion-pound procurement and investment programme. Prior to that she worked with British Gas and then National Grid PLC in the commercial operations and construction of national energy infrastructure. Karen has held a number of non-executive roles for Departments of State, including Board Director and Audit Committee Chair of the British Cabinet Office. Karen is currently an Independent Member of the New Zealand Defence Force Audit and Risk Committee and the Nelson Lawyers Standards Committee.
Russell Black is a civil engineer with extensive client delivery management experience on major infrastructure projects, predominantly urban and underground railways in Hong Kong, Singapore, London, and China. He provides client governance and consultancy services to Australian urban rail projects.
Anne Urlwin is a professional director and chartered accountant with a wide range of governance experience, including in the infrastructure and construction sectors. Her current roles include directorships of Chorus Ltd, (including its subsidiary Chorus NZ Ltd), Steel & Tube Holdings Ltd, Summerset Group Holdings Ltd, and she is Deputy Chairman of Southern Response Earthquake Services Ltd. She was formerly Chairman of national commercial construction group Naylor Love and has served on a number of central and local government entity boards.
Brian Harrison has a legal background with extensive domestic and international experience advising corporates, financiers, multi-laterals and government bodies on major projects and infrastructure in a broad range of sectors, including rail, road, aviation, ports, property and public-private partnerships. His roles have included managing and executing complex projects with responsibility for overall corporate structures and governance, procurement and contract negotiation, capital and debt structuring and analysis and advice on execution and risk allocation.
7
A concept image of CRL’s Mt Eden Station interior
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Project Overview Auckland’s Transport Environment
10
Project Objectives
11
Project Benefits
12-13
Project Delivery
14-15
Statement of Performance
16-17
Progress Highlights
18-19
Heritage 22 Health and Safety
24-25
Engagement 26-27
PROJECT OVERVIEW
Sustainability 20-21
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Congestion costs Auckland $1.3 billion in lost productivity per annum
AUCKLAND’S TRANSPORT ENVIRONMENT Auckland is a successful and rapidly growing city. Each year, about 45,000 extra people call Auckland home. With a population of 1.6 million, it is projected to receive 55% of New Zealand’s total growth in the next decade,
Between 2003 and 2017, public transport patronage increased by 63% – more than double the population growth. The CRL is a priority project in a $28 billion 10-year transport improvement plan signed off by the Government, Auckland Council and Auckland Transport to cater for this projected growth and keep Auckland moving. The region needs a resilient, sustainable and modern public transport system that provides more choices and better access to places people need to be. The CRL, the largest transport project ever undertaken in New Zealand, is an integral part of that solution. The growth of the rail system, including increases in train frequency, is constrained by its dead end at the Britomart Transport Centre, which limits the entire
taking the city’s population
network’s capacity.
to two million by 2028.
The CRL will turn Britomart Station into a two-way through station that extends the existing rail line through Auckland’s CBD to connect with the Western Line at a redeveloped Mt Eden Station via two new underground stations at Albert Street and Karangahape Road. The CRL will enable more than double the capacity across the entire Auckland rail network and improve connections with other modes of transport, including busways, light rail and ferries, to create an integrated public transport system that keeps people moving. Congestion is costing the city $1.3 billion each year. The CRL will help to ease congestion by providing commuters with a viable alternative to driving on Auckland road. In addition, the projected journey time savings will bring twice as many people within 30 minutes of the city centre, Auckland’s biggest area of employment.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
An artist’s impression of the new Mt Eden Station
The CRL is a significant transport infrastructure project that will enhance the
The project comprises a 3.45-kilometre double-track underground rail line that will run from a redeveloped Britomart Station and under Auckland’s CBD via new stations at Albert Street and Karangahape Road to connect with the existing Western Line at a redeveloped Mt Eden Station.
capacity and performance
It also includes other associated works to maximise the benefits of the CRL and
of Auckland rail services,
the efficiency of the rail network.
PROJECT OBJECTIVES
PROJECT OBJECTIVES
improve public transport outcomes and add to the quality of life in the region.
CRLL’S OVERARCHING OBJECTIVES INCLUDE: • Improving transport access into and around Auckland’s city centre • Improving the efficiency and resilience of the transport network of urban Auckland • Significantly contributing to lifting and shaping Auckland’s economic growth • Providing a sustainable transport solution that minimises environmental impacts • Contributing positively to a liveable, vibrant and safe city • Delivering the CRL project with a ‘best for Auckland’ approach.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Rangitoto Island
Takarunga/ Mt Victoria
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Redeveloped Britomart Station
Devonport Wharf Waitematā Harbour
Waitematā Harbour
Downtown Ferry Terminal
Spark Arena in
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Auckland City Hospital
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Continues to Western Line
Twin 3.45km rail tunnels 42m underground Project scope BENEFITS between Britomart and Mt Eden stations PROJECT Start date XX
EndCRL dateisXX The the biggest
The City Rail Link will delive
• Allow more trains to run in and ou the city meaning more trains more of
• Significant time savings connectin Two new underground stations near Aotea Britomart to Mt Eden in less than and Karangahape New railRoad transport growth statistics suggest that, by 2035, CRL stations10will need to minutes
• the Double the number of people wit cope 54,000 passengers Stations an hour at peak travel times, rather than original Redeveloped Mtwith Eden and Britomart 30 minutes travel of New Zealand
transport infrastructure
project ever undertaken in New Zealand and will be a
estimate of 36,000.
biggest employment hub
With trains running in both directions through Britomart Station, the CRL will remove the existing constraints on the network and enable it to more than double
game-changer for Auckland.
its capacity to meet this demand.
When the CRL opens in 2024,
It will also improve travel options and journey times. The addition of two new, modern
Aucklanders will have new,
CRL stations on the network will improve connectivity and journey times for many
best-in-class stations and a rail service that benefits the
passengers. From the redeveloped Mt Eden Station it will take only three minutes to get to the new uptown Karangahape Station, six minutes to the new mid-town Aotea Station and nine minutes to the redeveloped downtown Britomart Station.
entire transport network for
In this way the CRL will provide a massive step-change in the rail system and
decades to come.
close a significant gap in customer service levels, better matching public transport demand and supply. However, the CRL is about more than improving public transport provision. It will also be a catalyst for urban development to support the future demands of our growing city. The new CRL stations will attract development opportunities that will help to shape a more vibrant and safer city with more homes and better amenities.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
When the CRL is in place, Kelly Tarlton’s Sea Life Aquarium
up to
Bastion Point
Hobson Bay
passengers an hour
Continues to Eastern Line Shore Road Reserve
Auckland War Memorial Museum Geo rg e St
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Auckland Grammar
will be able to travel by train into the CBD at peak times. That extra capacity is the equivalent of 16 extra lanes of traffic or three Auckland Harbour Bridges.
y Rd
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PROJECT BENEFITS
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54,000
er significant benefits for people who live in and visit Auckland.
ut of ften
• Twice as many people can be moved on rail in peak times
• Better health and environmental outcomes
ng
• Deliver place-shaping outcomes for a more liveable Auckland
• A modern public transport system in line with the worlds greatest cities
• More transport choices
• Create jobs for up to 1500 people
thin d’s
Already, a significant private investment can • of Ease bus congestion in the city • Provide an attractive alternative amount to centre being constructed travelling by carin the many developments be seen or planned along the CRL route.
The CRL will also be an economic enabler. It brings 30,000 more people within half an hour’s travel of We’ve lots more images, videos and updates on our website the city centre, giving more people greater access to a
CityRailLink.co.nz
wider range of jobs and giving employers a greater pool
CityRailLink
of talent to draw from. It will also help tackle Auckland’s traffic congestion issues – which cost the economy an estimated $1.3 billion in lost productivity each year – by providing a viable transport alternative to using private vehicles. The CRL will drive growth right across the construction industry and will be employing about 1,600 people at the project’s construction peak. There will then be an ongoing demand for workers to keep the CRL underground network operational.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
PROJECT DELIVERY The project’s key construction activities comprise eight contracts, of which four (C1, C2, C6 and DSC) are underway. Where relevant, the expected milestones agreed in the Project Delivery Agreement (PDA) have been included in the information below and the progress up to 30 June 2018 for each contract is noted. The PDA originally contemplated Design and Construct contract models for each of the contracts. The C3 and C7 contracts were changed to Alliance contracts to reflect a review of the procurement strategy and a change in market conditions. C1
Being delivered by Downer Soletanche Bachy Joint Venture
C3
to tender, award expected April 2019)
Creation of temporary Britomart station passenger facility
Mining tunnels from just south of Wyndham Street to
and construction of tunnels from below Britomart Station
the North Auckland Line at Mt Eden, building two new
to the former Downtown Shopping Centre (DSC) site.
CRL stations (Aotea and Karangahape) and redeveloping
The programme of work is on track within the originally
Mt Eden Station.
contemplated programme, with excavation about to commence, and completion scheduled for July 2020.
C2
Main stations and tunnels contract (currently out
Milestone
Commence
Complete
Contract Award
February 2019
March 2019
Milestone
Commence
Complete
Testing & Commissioning
June 2023
March 2024
Target Delivery Date
Underway
June 2020
Target Delivery Date
March 2024
Following the withdrawal of a tenderer, a decision was
C ut and cover contract being delivered by Connectus (McConnell Dowell/Hawkins) Joint Venture
made to move to a competitive alliance process. This will see a successful bidder identified by May 2019, and the process remains on track to the revised timetable.
Trenching and tunnelling from the DSC site (corner Customs and Albert Streets) to the Wyndham Street intersection on Albert Street and the pipe-jack contract for the relocation of the stormwater main on Albert Street
C5
Western Line works (not yet awarded) Connection of tunnels to existing North Auckland Line
and strengthening the Ōrākei Main Sewer that intersects
live rail corridor environment.
it. The work is running behind programme, having been affected by unforeseen technical issues in relation to the
Milestone
Commence
Complete
site. However, the delay is not affecting the critical path
Contract Award
January 2019
March 2019
of the project. CRLL’s exposure is capped, as this is
Target Delivery Date
January 2024
a fixed-price contract. Milestone
Commence
Complete
Target Delivery Date
Underway
August 2019
Britomart East
Mt Eden Queen Street
Aotea
Contract 1* Contract 3 – Stations and Tunnels Downtown Shopping Centre* (DSC) Contract 5 – Western Line Contract 2* 14
Karangahape Contract 6* –
Wider Network Improvements (not shown)
--- Contract 7 – Rail Systems
C8 – Strand and Otahuhu Improvements
Mt Eden Stormwater Main
* Already Let/Under Construction
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
C6 Being
Bentonite silos for diaphragm walls being erected at Britomart
delivered by March Bessac Joint Venture
Stormwater line replacement in Mt Eden, prior to start of C3 and C5 works. The contract has been awarded and actual physical works are scheduled to commence quarter 1 of the 2019 financial year.
C7
Milestone
Commence
Complete
Contract Award
September 2017
February 2018
Target Delivery Date
February 2018
February 2020
inewide systems contract (preferred alliance L identified, to be awarded October 2018) Rail systems integration, testing and commissioning from Britomart Station to Mt Eden Station. Milestone
Commence
Complete
Contract Award
February 2019
March 2019
Testing & Commissioning
October 2023
March 2024 March 2024
Following the appointment of the CRLL Board, a review of the CRL’s procurement strategy was undertaken and a decision made to move to an alliance-based contract for C7. The Interim Project Alliance Agreement was entered into in October 2018. C8
PROJECT DELIVERY
Target Delivery Date
Wider network improvements at The Strand
and Ōtāhuhu Station, delivered by KiwiRail and Auckland Transport. Simplifying train access to The Strand stabling facility by realigning tracks and adding a track cross-over point and providing a new platform on a loop track off the main line at Ōtāhuhu Station. DSC Being
delivered by Precinct Properties
Construction of the CRL tunnels below the Commercial Bay retail and tower development site. The work is running behind programme, the schedule having been affected by the above-ground works being undertaken by Precinct. However, the delay is not affecting the critical path of the project. Milestone
Commence
Complete
Target Delivery Date
Underway
January 2018
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
John Williamson (General Manager Strategy and Development) and Scott Elwarth (Head of Delivery) survey construction work at the Chief Post Office and Lower Queen Street
STATEMENT OF PERFORMANCE This section describes the 2017-2018 progress made towards achieving the identified performance measures included under CRLL’s three output areas, as outlined in the Statement of Performance Expectations.
DELIVERY PROGRAMME
Actual 2018
KPI 2018
CRLL will report on its performance against the delivery milestones
Achieved - refer page 14
Milestone reporting
to the Sponsors under the PDA.
for further information
as per the PDA
HEALTH AND SAFETY A revised Health and Safety Management System will be completed
Actual 2018 Achieved - Q2 2018
KPI 2018 Q2 2018
and approved by the Board by the end of quarter 2 of CRLL’s financial year (1 July to 30 June).
PROPERTY PROCUREMENT PROGRAMME SCHEDULE
Actual 2018
Commence negotiations on partial surface and construction
Achieved – negotiations
occupation acquisitions by the end of quarter 4 of CRLL’s
well advanced with actual
financial year.
acquisitions scheduled for 2018-2019
16
KPI 2018 Q4 2018
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
STATEMENT OF PERFORMANCE
This section of the Statement of Performance describes the 2017-2018 results against the appropriation – Auckland City Rail Link (Non-Departmental Capital Expenditure).
OUTPUT CLASS STATEMENT – CITY RAIL LINK DEVELOPMENT $(000) REVENUE
Actual 2018
Crown revenue*
Budget 2018
0
0
Other revenue
3,585
1,018
Total revenue
3,585
1,018
36,868
3,499
(33,283)
2,481
Total expenses Net surplus/(deficit)
The Crown and Auckland Council fund CRLL by subscribing to equity in the company.
** CRLL is in the first year of financial reporting, thus no comparatives are available.
CROWN APPROPRIATION $(000) CITY RAIL LINK LIMITED
Actual 2018
Budget 2018
Contribution from the Crown
93,276
93,276
Capital expenditure*
93,276
93,276
0
0
Surplus/(deficit)
STATEMENT OF PERFORMANCE
* The Crown is a 51% shareholder of CRLL and funds CRLL on 50:50 basis with Auckland Council.
* The Crown provided an amount of $93,275,122 by way of a capital contribution to CRL. ** CRLL is in the first year of financial reporting, thus no comparatives are available.
An explanation of the variances from budget can be found in note 13 of the financial statements.
ASSESSMENT OF PERFORMANCE CITY RAIL LINK LIMITED
Actual 2018
Percentage of activities that are delivered to agreed standards
Progressing as per Schedule
and timeframes.
5 of the PDA - refer pages 14
Target 2018 100%
and 15 where the activities are described. * CRLL is in the first year of reporting and thus no comparatives are available.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
PROGRESS HIGHLIGHTS
18
JULY 2017
JULY 2017
AUGUST 2017
Bulk excavation of the CRL’s cut-and-
The sodium bentonite plant is set up
A second pedestrian bridge opens at
cover rail tunnels starts under Albert
on Lower Queen Street to produce
Swanson Street, affording a great view
Street. It will be dug to 18 metres at
the slurry that will be pumped into
of the CRL works happening below
the deepest (southern) point, using
the trenches being excavated for the
Albert Street.
long-reach excavators above ground
diaphragm walls, to keep the surrounding
and smaller machinery inside the
earth stable until steel-reinforced
reinforced trench.
concrete can be added in its place.
DECEMBER 2017
JANUARY 2018
FEBRUARY 2018
The first concrete is poured for the CRL
The concrete pour for the 64th and final
Construction begins on the first section
tunnel box in Albert Street, following
diaphragm wall is completed in Britomart
of the Albert Street tunnel box.
the removal of 30,000 cubic metres of
Station’s Chief Post Office. The walls
soil and rock and the diversion of about
are required to support the CRL tunnel
eight kilometres of utility pipes.
excavation under Britomart Station.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
SEPTEMBER 2017 OCTOBER 2017
‘Sandrine’, the 90-tonne compact
The last reinforced-concrete deck slab
The Albert Street trench excavation
hydrofraise piling rig, starts work,
is poured for the traffic bridge at the
reaches the halfway mark at the
digging the 15-to 20-metre-deep
Customs/Albert Streets intersection.
southern end.
diaphragm walls that will form the
This protects utility services and allows
structural support for the CRL
traffic and pedestrians to continue using
tunnels under Lower Queen Street
the intersection when the CRL tunnels
and Britomart Station’s Chief Post
are constructed underneath.
PROGRESS HIGHLIGHTS
AUGUST 2017
Office building.
APRIL 2018
MAY 2018
JUNE 2018
The CRL’s Mt Eden stormwater
The first load transfer of a section of
In the Albert Street trench, the fifth
realignment contract kicks off with
Britomart Station’s Chief Post Office
wall of the CRL tunnel box is poured
the demolition of two CRL-owned
building is completed. The weight
(bringing the total length of wall
buildings. This paves the way for
of the heritage building is being
completed to 60 metres) and the
construction of the 15-to 17-metre-
progressively moved onto structural-
formwork for the first section of the
deep shafts that will launch and
steel underpinning frames to allow CRL
tunnel box roof is prepared.
receive the mini tunnel boring machine
tunnels to be built underneath.
that will pipe-jack the replacement 420-metre stormwater line.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
CRLL won the 2018 Deloitte Energy Excellence Awards’ Large Energy User Initiative of the Year award for delivering sustainable infrastructure with outstanding energy-related initiatives
SUSTAINABILITY The vision for the CRL is that it will be designed, constructed and operated to the highest sustainability standards and will set the benchmark for delivering sustainable infrastructure in New Zealand.
CRLL HAS FIVE FOCUS AREAS FOR DELIVERING ON THIS VISION: 1. Reducing resource consumption, taking a whole-of-life-cycle approach to resource efficiency and measuring the CRL’s carbon footprint 2. Sharing Auckland Council’s aspirational goal of zero waste to landfill, with a focus on designing out waste and avoiding waste generation through construction 3. Benefiting the community of Tāmaki Makaurau through employment, workforce development, supply chain diversity and supporting our future workforce 4. Ensuring good governance, with rigorous reporting and the use of the independent Infrastructure Sustainability (IS) rating framework 5. Supporting Mana Whenua outcomes through delivering on the principles of kaitiakitanga (guardianship).
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
PROGRESS TO DATE Resource Consumption A focus on reducing resource consumption and optimising the
This past year has seen CRLL forming, developing and
carbon footprint during the design and construction planning
strengthening relationships with Mana Whenua, government
for Contracts 1 and 2 resulted in a projected reduction in
agencies, community groups and education providers to
materials, energy and water footprints compared to business as
address skill shortages so that its future workforce is ready
usual. As construction progresses, both contracts are on target
when jobs become available.
to reduce carbon emissions related to materials and energy use even further than projected.
Infrastructure Sustainability Rating
Water savings have been more modest than projected, mainly
There is no New Zealand sustainability standard for
due to unforeseen high use at the start of construction.
infrastructure, so CRLL is using the independently
Improvement in the past 12 months, along with planned
verified Infrastructure Sustainability Council of Australia’s
initiatives to re-use water on site, means that savings are
Infrastructure Sustainability (IS) rating tool to measure
anticipated to improve.
sustainability performance. To date a ‘Leading’ IS Design
As of 30 June, more than 132,000 tonnes of spoil, construction and demolition waste have been diverted from landfill. Current diversion figures are 98% for construction and demolition
rating has been achieved for Contracts 1 and 2, ahead of the ‘Excellent’ originally targeted, and both contracts are tracking well to deliver on the as-built rating at the end of construction. Sustainability has also been included in the
waste and 94% for spoil. Although Auckland Council’s aspirational goal of 100% diversion has not been achieved, the
remaining contract packages, with CRLL evaluating tenderers
waste from landfill and still aims to exceed the demolition and
on sustainability criteria, including social outcomes.
spoil waste targets of 90% and 95% respectively.
CRLL has continued to work closely with Mana Whenua to ensure that sustainability criteria are compatible with te Ao
Social Outcomes
Māori (the Māori world view). This work, embedding cultural values across the IS framework, has led to the creation of a
CRLL has a Social Outcomes Strategy focused on training
SUSTAINABILITY
project has been able to divert very significant quantities of
procurement activities undertaken in the past year for the
custom-made CRL technical manual for sustainability, titled
and employment outcomes for those experiencing barriers, disadvantage or discrimination in the labour market, promoting
Mahi Rauora Aratohu.
supply chain diversity and supporting our future workforce.
Materials emissions reduction
Target 12%
Energy emissions reduction
Target 30%
Water use reduction
Target 25%
Demolition waste diverted from landfill
Target 90%
Spoil diverted from landfill
Target 95%
Achieved 31%
Achieved 56%
Achieved 14%
Achieved 98%
Achieved 94%
0
20
40
60
80
100 21
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Various bottles from mid-late 19th century. CRL archaeologists believe the wooden stake was likely used in the construction of the CPO, which was completed in 1912
HERITAGE BUILDING THE FUTURE, UNCOVERING THE PAST Converting Britomart Station from a dead end to a through station has provided an opportunity for CRLL to contribute to cultural sustainability by conserving the built heritage of the historic Chief Post Office building and literally digging into the area’s colonial past. During the reclamation of the Commercial Bay area of Auckland’s waterfront in the mid-1800s, household rubbish and building debris were thrown in to the fill. Now that CRLL has started excavating around and under the Chief Post Office, many historical artefacts are being recovered. The heritage items are documented by the project’s archaeologist and CRLL will be looking at ways to display them in the new stations.
These items, dating from mid to late 1800s, were recovered by contractors from reclamation fill beneath the CPO around 1.5 metres below ground. The torpedo-shaped bottle is considered a rare find in New Zealand. Other recovered items include a complete stoneware master ink bottle with pouring lip, two broken bottles and the remains of a wooden scrubbing brush.
22
In February, CRLL started construction of the Albert Street tunnel box
SUSTAINABILITY
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
In March, the first 12 metres of waterproofing were completed for the first slab of the Albert Street tunnel box
HEALTH AND SAFETY As a Crown entity operating in a construction environment, CRLL aims to be a leader in
Upon its establishment, CRLL focused on the development and implementation of its first Health and Safety Management System. The system ensures that correct information flows up to the Senior Leadership Team and the Board to inform decision-making, while providing the necessary guidance to the business and its
health and safety and ensure
contracting partners.
compliance with the Health
As part of the ongoing refinement of CRLL’s strategic approach to health and safety,
and Safety at Work Act 2015.
the company is looking to incorporate tikanga Māori values into its safety values -
CRLL is committed to a
CRLL’s safety performance improved during the year. The Total Recordable Injury
culture that holds safety as a
Frequency Rate (TRIFR), including all its contracted works, reduced during the year
core part of its identity and reinforces with staff and
an initiative supported by CRLL’s Mana Whenua Forum.
from 10.77 to 5.95 per million hours worked. This compares very favourably with the latest New Zealand industry benchmark figure for TRIFR of 10.25 per million hours worked (2016 data).
contractors that “no task is too important or so urgent as to preclude health and safety”.
INCIDENT FREQUENCY RATE 12
10
8
6
TRIFR R MTIFR
4 LTIFR
2
Benchmark
24
18 JU N
18 M
AY
18 R AP
18 M
AR
18 B FE
18 JA N
17 DE C
7
17 NO V
OC T1
17 SE PT
17 AU G
JU
LY
17
0
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Work in Britomart’s Chief Post Office building to create the supports that would enable the weight of the heritage building to be lifted
CRLL expects its contractors to score
management, CRLL measures lead indicators to ensure that people are fit for
above 90% in CRLL-led safety audits.
work and CRL worksites are as safe as they can be. These include the differential
Two audits on contractors’ health and
between planned and actual site safety inspections, safety toolbox meetings and
safety management systems and on-
drug and alcohol testing.
site activities were carried out between
Leading indicators for the year generally demonstrated positive results between planned and actual activities. Random drug and alcohol testing was below the desired level; however, CRLL is working with its contractors to agree terms for more workable testing regimes.
HEALTH AND SAFETY
In line with industry best practice for proactive and preventive health and safety
July 2017 and June 2018, to ensure compliance with CRLL requirements and legislative requirements. On the C1 (Britomart Station) contract, the first audit result was 76%. However, a new safety improvement plan resulted in a 96% follow-up score.
LEADING PERFORMANCE INDEX 5
On the C2 (Albert Street) contract, the audit result was 95%.
4.5 4
CRLL’s employee-only TRIFR for the
3.5
year was zero.
3
As part of its commitment to workplace
2.5
health and safety, CRLL surveyed its employees to gauge their sense of
2
wellbeing in the workplace. Eighty-five
1.5
percent of staff responded to the survey
1
and the results were used to develop a
0.5
programme of 12 wellbeing initiatives,
Baseline
Site Safety Inspections
18 N JU
18 AY
18 M
M
D&A Testing
AP R
18 AR
18 B FE
18 JA N
17 DE C
17 NO V
7 OC T1
17 PT SE
17 AU G
JU
LY
17
0
such as nutrition and fitness programmes and resilience training.
Safety Toolboxes
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Preparation works at the Chief Post Office building 26
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
CRL staff enjoying a hangi lunch to mark Māori Language Week
The successful delivery of the CRL project is reliant on
Our policies and processes support the attraction, retention and development of skilled employees and we provide a well-equipped and welcoming place to work.
the technical, commercial and financial expertise of the CRLL team. CRLL has a defined vision,
KEY FOCUS AREAS FOR CRLL IN THIS AREA, INCLUDE: • Leadership and workplace culture – The CRLL senior leadership team is a culturally-diverse team of local and international talent. Workplace culture
project objectives and values,
has been built through setting, communicating and managing expected team
in order to provide clear
behaviours and acknowledging employee contribution to the project at all levels.
direction and accountability for the CRL project team.
CRLL AS A GOOD EMPLOYER
CRLL AS A GOOD EMPLOYER
• Cultural diversity – CRLL follows best practice in regards to equal employment opportunities and our commitment is reflected in our varied employee groups by gender, age and ethnicity. • Employee wellbeing and safety – CRLL has a strategic approach to employee wellbeing and safety, with monthly wellbeing initiatives and Health and Safety policies designed to engage, care for and educate our people. • Recruitment and selection – CRLL employees are recruited through a broad range of resources, including industry networks, recommendations, recruitment advertising and use of recruitment agencies. CRLL staff have been recruited through industry best practice, using behavioural interviewing, reference checking and psychometric profiling. • Harassment and bullying prevention – CRLL has a zero tolerance approach to all forms of harassment and bullying, with policies and processes in place to support any complaints.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
CRLL holds community information sessions so that locals can learn about the project and what construction work is about to happen in their neighbourhoods
ENGAGEMENT Delivering quality communications and meaningful engagement is a key focus for the project. The CRL will be the largest and most transformational transport project Auckland has seen since the Harbour Bridge was built in 1959, and will bring a great number of benefits and opportunities for the region and its people. The project’s design and construction progress and the massive contribution it will make to life in Auckland is an exciting story to share. CRLL does this through a range of channels, from public displays, site tours, industry engagement, information sessions and face-to-face meetings to its ever-changing website, print media and social media sites, which are followed by people around the world. Constructing a 3.45-kilometre underground railway and four stations in a busy urban environment also brings a unique set of challenges. Managing the effects of development on local residents, businesses, property owners and visitors is important to CRLL and they have been a core focus for the project through the planning and design phases.
28
STREET-LEVEL ACTIVATION In collaboration with Auckland Council, CRLL has arranged a number of events and activations to help mitigate construction effects and give back to the community. The ‘Eat Albert Street’ event in August 2017 provided a food and live entertainment circuit, themed with the offerings of the participating Albert Street businesses, as part of Auckland’s Restaurant Month. The vibrant community evening event drove new and existing customers to the area, raising the profile of participating businesses. At the end of 2017, a ‘Wednesdays on Wellesley’ street entertainment programme was run for Wellesley Street businesses affected by CRLL’s stormwater diversion works. The six-week campaign used live street performances that reflected the culture and cuisine of participating restaurants. It encouraged people to purposely visit these businesses to enjoy their food and live entertainment, and the initiative was well received by customers and businesses alike. Public tours of Albert Street were also hosted by CRLL as part of the Auckland Heritage Festival and Auckland Walk Month.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
MANA WHENUA FORUM CRLL is proud of its collaborative working relationship with the eight iwi represented in its Mana Whenua Forum. The role of the forum is to: provide input into the design of
The forum has always been an integral part
the CRL stations and the development of the project’s many
[of the project] that has been developed by CRLL.
management and delivery work plans, work collaboratively around built heritage and archaeological matters, undertake kaitiakitanga responsibilities associated with the project, including monitoring and assisting with discovery procedures
Over the term of the project, our views have been listened to and acted on where they can.
and providing input of Māori mātauranga (knowledge) in
We’re sure the outcomes that are
relevant stages of the project.
going to be achieved are positive
The forum meets monthly and has additional workshops on
and they are going to be unique
design, consents, sustainability and other matters.
to Auckland.
Iwi narratives have directly influenced the station designs -
- Geoff Cook, Ngāti Maru
COMMUNITY LIAISON GROUPS
CRLL’S DIGITAL PRESENCE
CRLL has four Community Liaison Groups that are
CRLL connects with a wide variety of people via its digital
representative of the residents, property owners and
platforms, operating four social media channels in addition
businesses directly affected by its construction works.
to its project website and e-newsletter.
The groups meet regularly through the construction period
The launch of the CRL website cityraillink.govt.nz was timed
to receive updates on project progress, monitor and give
to coincide with the establishment of CRLL. The website is
feedback on the effects of construction on the community,
a regularly updated platform that provides information for a
provide feedback on the development of a wide variety of
variety of audiences. Visitors range from people wanting to
construction management and delivery plans, and propose
keep up to date with project progress to those interested in
potential joint initiatives regarding the interim use of
working on the project.
properties, including vacant land acquired for construction.
ENGAGEMENT
both the internal structure and the external appearance.
The website attracts an
Community Liaison Group members have made a time
average of 40,000 page
commitment to the groups, who will meet regularly in
views per month. Our
several years of construction to allow for the accumulation
social media platforms now
of knowledge about the project.
include Facebook, LinkedIn,
10k+ followers
3,233 followers
43% access web on mobile
YouTube and Instagram.
CRLL HAS ESTABLISHED THREE KEY COMMUNICATION PRINCIPLES FOR ITS INTERACTION WITH ITS STAKEHOLDERS Proactiveness
Language and Style
Responsiveness
CRLL will inform people affected by the
Communications will be straightforward,
Responses will be timely, full, helpful,
project in such a way that they hear from
fact-based, clear, engaging and interesting.
frank and as detailed as possible. They
the project before they hear about it from
Jargon and bureaucratic language will
should demonstrate that CRLL is listening,
any third party. Information will demonstrate
be avoided.
even if agreement cannot be reached.
that CRLL is being upfront and transparent
There will be investment in face-to-face
about what is proposed and provide as much
communication and personal attention.
certainty and detail as possible.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
A view of CRL trench works on Albert Street 30
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Financial Corporate Directory
32
Statement of Responsibility
33
Statement of Financial Performance
35
Statement of Financial Position
36
Statement of Changes in Equity
37
Statement of Cash Flows
38
Notes to the Financial Statements Director’s Interests Audit Report
39-50 51 52-55
FINANCIAL 31
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
CORPORATE DIRECTORY
BOARD
Sir Brian Roche (Chairman) Russell Black Brian Harrison Karen Jordan Anne Urlwin
SENIOR MANAGEMENT
Sean Sweeney (CE) Caroline Beaumont Steve Brunell Rhys Clark Sumi Eratne Victoria Jessop Rob Mair Moira Manning Russell McMullan John Williamson
BANKERS
Bank of New Zealand Queen Street Auckland ANZ Albert Street Auckland
AUDITOR
Audit New Zealand on behalf of the Auditor-General
REGISTERED OFFICE
Level 17, AMP Building 29 Customs Street West Auckland Central Auckland 1010
SOLICITOR
32
Simpson Grierson
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
STATEMENT OF RESPONSIBILITY
We are responsible for the preparation of City Rail Link Limited’s (the Company’s) financial statements and statement of performance, and for the judgements made in them. We are responsible for any end-of-year performance information provided by the Company under section 19A of the Public Finance Act 1989. We have the responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial reporting. In our opinion, these financial statements and statement of performance fairly reflect the financial position and operations of the Company for the year ended 30 June 2018.
Signed on behalf of the Board
Anne Urlwin
Chairman
Director
Dated: 31 October 2018
Dated: 31 October 2018
FINANCIAL REPORT
Sir Brian Roche
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
34
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Statement of Financial Performance for the year ended 30 June 2018 in New Zealand ‘000 Dollars
Note
2018 $(000)
Revenue Rental revenue – commercial
2,623
Rental revenue – residential
302
Interest revenue
543
Other revenue
117
Total revenue
3,585
Expenses Employment expenses
2
Professional services
4,407 3,853
IT expenses
968
General expenses
2,230
Bad and doubtful debts
117
Lease payments
284
Depreciation and amortisation expenses Impairment expenses
3, 4 5
Total expenditure
320 24,689 36,868
Surplus/(Deficit) for the year
(33,283)
Total comprehensive revenue and expense for the year
(33,283)
FINANCIAL REPORT
This statement is to be read in conjunction with the notes to the financial statements. City Rail Link Limited commenced operations with effect from 1 July 2017. As a result, there are no prior period comparatives. Refer to note 16 on page 49 for comparatives to budget.
35
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Statement of Financial Position as at 30 June 2018 in New Zealand ‘000 Dollars
Note
2018 $(000)
Assets Cash and cash equivalents
6
54,776
Trade and other receivables
7
4,470
Total current assets
59,246
Capital work in progress
5
398,436
Property, plant and equipment
3
142,551
Intangibles
4
1,068
Total non-current assets
542,055
Total assets
601,301
Liabilities Accounts payable and accruals
8
10,780
Current employee entitlements
9
1,328
Related party payables
8
12
193
Total current liabilities
12,301
Total liabilities
12,301
Net assets
589,000
Equity Contributed capital
622,283
Retained earnings
(33,283)
Total equity
589,000
This statement is to be read in conjunction with the notes to the financial statements. City Rail Link Limited commenced operations with effect from 1 July 2017. As a result, there are no prior-period comparatives. Refer to note 16 on page 49 for comparatives to budget.
36
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Statement of Changes in Equity for the year ended 30 June 2018 in New Zealand ‘000 Dollars
Balance at 1 July 2017 Surplus/(Deficit) for the year
Retained earnings
Contributed capital
Total
$(000)
$(000)
$(000)
-
-
-
(33,283)
-
(33,283)
435,730
435,730
-
186,553
186,553
(33,283)
622,283
589,000
Contributions on settlement transfer Funding received for B class share issues Balance as at 30 June 2018
Shareholding Minister of Finance
Minister of Transport
Auckland Council
Total
000
000
000
000
255
255
490
1000
B class shares
32,345,784
32,345,784
64,691,568
129,383,136
B class shares to be allocated
14,291,777
14,291,777
28,583,554
57,167,108
Total B class shares
46,637,561
46,637,561
93,275,122
186,550,244
Total Shares
46,637,816
46,637,816
93,275,612
186,551,244
Ordinary Shares B class shares
FINANCIAL REPORT
This statement is to be read in conjunction with the notes to the financial statements. City Rail Link Limited commenced operations with effect from 1 July 2017. As a result, there are no prior-period comparatives.
37
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Statement of Cash Flows for the year ended 30 June 2018 in New Zealand ‘000 Dollars
Note
2018 $(000)
Cash flows from operating activities Cash received from customers
2,613
Cash paid to suppliers & employees
(11,217)
Interest received
543
Cash received from other operating activities
-
Net cash from operating activities
(8,061)
Cash flows from investing activities Acquisition of capital work in progress
(120,233)
Acquisition of property, plant and equipment
(3,055)
Acquisition of intangibles
(428)
Net cash from investing activities
(123,716)
Cash flows from financing activities Proceeds from issue of share capital
186,553
Net cash from financing activities
186,553
Net (decrease)/increase
54,776
Opening cash and cash equivalents
-
Closing cash
54,776
Made up of: Bank balances Total cash
54,776 6
This statement is to be read in conjunction with the notes to the financial statements. City Rail Link Limited commenced operations with effect from 1 July 2017. As a result, there are no prior-period comparatives.
38
54,776
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
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Notes to the Financial Statements 1. Statement of accounting policies 1.1 Reporting entity City Rail Link Limited (the ‘Company’) is a Crown Entity, registered under schedule 4A of the Public Finance Act, and is domiciled in New Zealand. The Company was incorporated on 13 April 2017. The Company is jointly owned by the Crown and Auckland Council. The Company’s purpose is to govern and manage the delivery of Auckland’s City Rail Link project. City Rail Link Limited commenced operations with effect from 1 July 2017. As a result, there are no prior period comparatives. The financial statements of the Company are for the year ended 30 June 2018. These financial statements were authorised by the City Rail Link Limited Board on the date specified on page 33. 1.2 Basis of preparation The financial statements have been prepared on a going-concern basis and the accounting policies have been applied consistently throughout the year. The financial statements of the Company have been prepared in accordance with the requirements of the Crown Entities Act 2004, which includes a requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP) and the Companies Act 1993. The Company has elected to report under Tier 1 Public Benefit Entity (PBE) standards and as such the financial statements have been prepared on that basis. The financial statements are presented in New Zealand ‘000 Dollars ($), which is the Company’s functional currency, and have been prepared on an accrual and historical cost basis. 1.3 New and amended standards and interpretations The new standards and interpretations that are effective from 1 July 2017 have no impact on the Company’s financial position, performance and/or disclosures due to this being the first year of operations. 1.4 Cash and cash equivalents Cash comprises cash at bank and short-term deposits with a maturity of three months or less. 1.5 Financial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets Financial assets are classified as loans and receivables. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate method, less impairment. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective
Financial liabilities Financial liabilities are classified as payables. The Company’s financial liabilities include trade and other payables. Trade and other payables are unsecured and are usually paid within 30 days of recognition. Due to their short-term nature they are not discounted. A financial liability is derecognised when the obligation under the liability is discharged or cancelled, or expires. 1.6 Property, plant and equipment
FINANCIAL REPORT
interest rate.
Property, plant and equipment consist of land, building, subterranean land, furniture and fittings, computer hardware, computer software and office equipment. Recognition and measurement Property, plant and equipment are measured initially at cost. Cost includes expenditure that is directly attributable to the acquisition of the items. The cost of an item of property, plant and equipment is recognised only when it is probable that the future economic benefits or service potential associated with the item will flow to the Company, and if the item’s cost can be measured reliably. The majority of capital expenditure will remain as work in progress for the duration of the project.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements Subsequent expenditure Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the entity. Repairs and maintenance costs are recognised as expenditure as incurred. Depreciation Land, Buildings and Subterranean Land are held for the development of rail tunnels and stations and are not depreciated. All other assets are depreciated on a straight-line basis over the useful lives of the asset. Depreciation is charged at a rate calculated to allocate the cost or valuation of an asset less any estimated residual value over its remaining useful life. The estimated useful lives of property, plant and equipment are as follows: Land and buildings
Not depreciated
Subterranean land
Not depreciated
Furniture and fittings
5 years
Office equipment
5 years
Computer hardware
5 years
The assets’ residual values, useful lives and amortisation methods are reviewed, and adjusted if appropriate, at each financial year end. Derecognition An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits or service potential are expected from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These are included in surplus or deficit. Impairment of non-cash generating assets For non-financial non-cash-generating assets, CRLL assesses at each reporting date whether there is an indication that a non-cash-generating asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, CRLL estimates the asset’s recoverable service amount. An asset’s recoverable service amount is the higher of the non-cash-generating asset’s fair value less costs to sell and its value in use. Where the carrying amount of an asset exceeds its recoverable service amount, the asset is considered impaired and is written down to its recoverable service amount. In assessing value in use, CRLL has adopted the depreciation replacement cost approach. Under this approach, the present value of the remaining service potential of an asset is determined as the depreciated replacement cost of the asset. The depreciated replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset. In determining fair value less costs to sell, the price of the asset in a binding agreement in an arm’s length transaction, adjusted for incremental costs that would be directly attributed to the disposal of the asset, is used. If there is no binding agreement, but the asset is traded on an active market, fair value less cost to sell is the asset’s market price less cost of disposal. If there is no binding sale agreement or active market for an asset, CRLL determines fair value less cost to sell based on the best available information. Impairment losses are recognised immediately in surplus or deficit. For each asset, an assessment is made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, CRLL estimates the asset’s recoverable service amount. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable service amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such a reversal is recognised in surplus or deficit.. 1.7 Intangible assets Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. The Company has no internally generated intangible assets. The useful lives of intangible assets are assessed as finite. Intangible assets with finite lives are amortised over their useful economic lives and assessed for impairment whenever there is an indication that the intangible assets may be impaired.
40
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits or service potential embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in surplus or deficit as the expense category that is consistent with the function of the intangible assets. Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in surplus or deficit when the asset is derecognised. 1.7 Intangible assets (continued) Software The Company holds several computer software packages for internal use, including purchased software. Purchased software is recognised and measured at the cost incurred to acquire the software. A summary of the policies applied to the Company’s intangible assets is as follows: Intangible asset
Useful life
Amortisation method
Software
5 years
Straight-line basis
1.8 Leases The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement at inception date. The substance of the arrangement depends on whether the fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset, even if that right is not explicitly specified in an arrangement. Company as a lessee Operating leases are leases that do not transfer substantially all the risks and benefits incidental to ownership of the leased items to the Company. Operating lease payments are recognised as an operating expense in surplus or deficit on a straight-line basis over the lease term. Company as a lessor Rent received from an operating lease is recognised as income on a straight-line basis over the lease term. Contingent rents are recognised as revenue in the periods in which they are earned. 1.9 Employee benefits Liabilities for wages and salaries (including non-monetary benefits) and annual leave are recognised in surplus or deficit during the periods in which the employees rendered the related services, and are generally expected to be settled within 12 months of the reporting date. The liabilities for these shortterm benefits are measured at the amounts expected to be paid when the liabilities are settled. Expenses for sick leave are recognised when the leave is taken and are measured at the rates paid.
Accumulated comprehensive revenue and expense is the Company’s accumulated surplus or deficit since the formation of the Company. Contributed capital represents the transfer of project costs based on a settlement agreement between the Crown and Auckland Council as well as shares issued to the shareholders, the Crown and the Auckland Council for funding of the project. 1000 Ordinary shares were issued for the contributed capital with B class shares being issued for funding. Each funding share represents one New Zealand dollar. 1.11 Revenue
FINANCIAL REPORT
1.10 Equity Equity is made up of accumulated comprehensive revenue and expense and contributed capital.
Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Company and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received. The following specific recognition criteria must be met before revenue is recognised. Rental revenue Rental revenue arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of financial performance due to its operating nature. Outstanding customer receivables are monitored monthly and balances >30 days are followed up for recovery. As at 30 June 2018, there were 27 property debtors with outstanding balances. The balance of each debtor was assessed individually as to collectability and a provision for doubtful debt has been accounted for as a result.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements Interest revenue Interest is received on the cash held at bank and short-term deposits maturing within less than three months. Interest income is included in finance income in the statement of financial performance. 1.12 Tax City Rail Link Limited is a Public Authority in accordance with the Income Tax Act 2007 and consequently is exempt from the payment of income tax. Accordingly, no provision has been made for income tax. All amounts are shown exclusive of GST, except for receivables and payables that are stated inclusive of GST. 1.13 Significant accounting judgements, estimates and assumptions The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenue, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amounts of assets or liabilities affected in future periods. Judgements In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements: Operating lease commitments – Company as lessor The Company has entered into commercial and rental property leases on its property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as a lease term not constituting a substantial portion of the economic life of a property, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases. The bulk of these properties (both residential and commercial) will, at some stage during the project, need to be demolished, with new stations constructed on these sites. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Company. Such changes are reflected in the assumptions when they occur. Useful lives and residual values The useful lives and residual values of assets are assessed using the following indicators to inform potential future use and value from disposal: • T he condition of the asset based on the assessment of experts employed by the Company • T he nature of the asset and its susceptibility and adaptability to changes in technology and processes • Changes in the market in relation to the asset. The estimated useful lives of the asset classes held by the Company are listed in notes 1.6 and 1.7. 2. Employment expenses Breakdown of personnel costs and further information Salaries and wages
30 June 2018 1,990
Defined contribution plan employer contributions (KiwiSaver)
226
Increase/(Decrease) in employee entitlements
992
Other employment-related costs
1,199
4,407
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements 2.1 Employee remuneration bands The number of employees, contractors and former employees and contractors who received remuneration and other benefits exceeding $100,000 during the year to 30 June 2018 are specified in the following table. Remuneration includes salary, any performance incentive payments, redundancy payments, employer contributions to superannuation, health and insurance plans, motor vehicle and other sundry benefits received in their capacity as employees or former employees of the Company and payments to contractors at their agreed rates in their capacity of filling roles that would otherwise have been filled by employees. 30 June 2018 Number of employees $100,000 - $109,999
4
$110,000 - $119,999
2
$120,000 - $129,999
4
$130,000 - $139,999
3
$140,000 - $149,999
3
$150,000 - $159,999
3
$160,000 - $169,999
4
$170,000 - $179,999
4
$180,000 - $189,999
2
$190,000 - $199,999
2
$200,000 - $209,999
3
$210,000 - $219,999
1
$220,000 - $229,999
2
$230,000 - $239,999
3
$240,000 - $249,999
1
$260,000 - $269,999
1
$270,000 - $279,999
1
$280,000 - $289,999
2 1
$530,000 - $539,999
46 Severance payments Termination benefits relate to severance amounts paid to three employees as a result of the reorganisation of the Company. The total termination amounts paid by the Company to these employees was $108k. Redundancy payments Termination benefits relate to redundancy amounts paid to eight employees as a result of the reorganisation of the Company. The total redundancy amounts paid by the Company to these employees was $286k. Board Member Remuneration 30 June 2018
$(000) Sir Brian Roche (Chair)
147.0
Russell Black
73.5
Brian Harrison
73.5
Karen Jordan
73.5
Anne Urlwin
73.5
441.0
FINANCIAL REPORT
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements 3. Property, plant and equipment 30 June 2018
Subterranean
Land
land Cost Balance at 1 July 2017 Transferred assets Additions Balance at 30 June 2018
$(000)
$(000)
Furniture
Office
and fittings
equipment
$(000)
$(000)
Total $(000)
-
-
-
-
-
754
138,184
547
162
139,647
-
2,729
18
308
3,055
754
140,913
565
470
142,702
-
-
-
-
-
Depreciation Balance at 1 July 2017 Depreciation for the year
-
-
110
41
151
Balance at 30 June 2018
-
-
110
41
151
754
140,913
455
429
142,551
Net book value at 30 June 2018
There are no items of PPE where title has been restricted or that have been used for security against liabilities. 4. Intangibles Software Cost Balance at 1 July 2017 Transferred assets Additions Balance at 30 June 2018
$(000) 809 428 1,237
Depreciation Balance at 1 July 2017
-
Depreciation for the year
169
Balance at 30 June 2018
169
Net book value at 30 June 2018
1,068
There are no intangible assets where title is restricted or pledged as security for liabilities. 5. Capital work in progress Capital work in progress is measured at the lower of cost or net realisable value. 30 June 2018 Cost Balance at 1 July 2017 Transferred assets
Capital work in progress $(000) 296,083
Additions
127,042
Balance at 30 June 2018
423,125
Impairment Balance at 1 July 2017
24,689
Balance at 30 June 2018
24,689
Net book value at 30 June 2018
44
-
Impairment for the year
398,436
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements City Rail Link Limited capitalises those costs directly attributable to the construction of the City Rail Link. These are captured under the description ‘Capital work in progress’. Examples of these costs include payments to contractors for the actual construction works, resource consents and compliance expenses and costs incurred in the design, procurement and supervision of the works. The Company also capitalises a portion of the overhead costs that it deems is required to support the construction of the actual physical works. Examples of these overhead costs include staff costs for corporate functions, and operating costs such those for as rent and utilities. For 2018, the total value of overhead costs capitalised is $11.3m. This allocation of costs is reviewed regularly to ensure that the method adopted remains appropriate for the stage of the project. On completion of the transfer of assets from the Crown and Auckland Council (note 12), CRLL undertook a detailed review of their values. The review examined all of the cost components in relation to specific assets and classes of assets. A total of $434m of expenditure, dating back to 2012, was reviewed. CRLL reviews its work in progress, at least annually, to identify any impairment of the carrying value of its assets. The review identified certain transactions which did not meet the definition of capex or CRLL’s accounting policy for ‘Capital Work in Progress’ as adopted by CRLL on the 1st of July 2017. An impairment of $24m has therefore been recognised to reflect this in the year ended 30 June 2018. 6. Cash and cash equivalents Cash comprises cash at bank and short-term deposits with a maturity of three months or less. 30 June 2018 $(000) Cash at bank
939
Short-term deposits
53,837
Total
54,776
Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates. Reconciliation of operating surplus with net cash from operating activities 30 June 2018 $(000) Surplus/(Deficit) for the year
(33,283)
Adjustments for: Depreciation and amortisation
320
Increase in provisions
117
Impairment of work in progress
24,689
Working capital movements: Accounts receivable, prepayments and other assets
(2,751)
Accounts payable, accruals and other liabilities
2,847 (8,061)
7. Trade and other receivables Accounts receivable are recognised and carried at the original invoice amounts less any allowance for any doubtful debts. Receivables are deemed to be doubtful when there is evidence that the amounts will not be fully collectable. The uncollectable amount is the difference between the carrying amount due and the present value of the amount expected to be collected. Accounts receivable are financial assets classified as trade and other receivables. All receivables are from exchange transactions (for cost or a nominal cost). 30 June 2018 $(000) Trade receivables
2,302
GST receivable
2,141
Sundry receivables
FINANCIAL REPORT
Cash generated from operating activities
144
Provision for doubtful debts
(117) 4,470
As at 30 June, the aging analysis of trade receivables was:
Trade receivables 30 June 2018
$(000)
$(000)
$(000)
$(000)
0 - 30 days
30 - 60 days
60 - 90 days
>90 days
1,924
97
111
170
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements 8. Trade and other payables Accounts payable and accruals represent liabilities of goods and services provided to the entity that have not been paid at the end of the financial year. Accounts payable and accruals are classified as other liabilities, and are measured at amortised cost. Note
30 June 2018 $(000)
Trade payables Related parties payables
980 12
Sundry payables and accruals
193 9,800 10,973
Terms and conditions of the above financial liabilities: • Trade payables are non-interest bearing and are normally settled on 60-day terms • Related party payables mainly relate to accruals for NoR applications not yet invoiced by Auckland Council • Sundry payables and accruals are non-interest bearing and have an average term of three months. 9. Employee entitlements 30 June 2018 $(000) Annual leave
422
Accrued salaries and wages
906 1,328
10. Commitments and contingencies Operating lease commitments – Company as a lessee The Company has entered into commercial leases. These leases have an average life of between three and five years, with renewal options included in the contracts. There are no restrictions placed upon the Company by entering into these leases. Future minimum rentals payable under non-cancellable operating leases as at 30 June 2018 are, as follows: 30 June 2018 $(000) Less than one year
1,691
One to five years
2,820
More than five years
1,387 5,898
Operating lease commitments – Company as a lessor The Company has entered into commercial and rental property leases on its property portfolio consisting of the Company’s buildings. These noncancellable leases have remaining terms of between one and three years. Each lease include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. Future minimum rentals receivable under non-cancellable operating leases as at 30 June 2018 are as follows: 30 June 2018 $(000) Less than one year One to five years More than five years
1,597 626 2,223
Commitments At 30 June 2018, the Company had commitments of $211.714m relating to the project (in relation to capital work in progress). In addition to this, as at balance date, CRLL continued to finalise outstanding matters relating to the initial transfers from Auckland Council Group. Contingencies As at 30 June 2018 CRLL is a party to various claims and sundry disputes. Where it has been assessed that the likelihood of having to make a payment meets the recognition criteria for a provision, this has been included in the financial statements.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements 11. Financial assets and liabilities and financial risk management The table below summarises the maturity profile of the Company’s financial liabilities which show the timing of the cash outflows and the maturity profiles of financial assets held by the Company which are readily saleable or expected to generate cash inflows to meet the cash outflows of the financial liabilities. The amounts disclosed are undiscounted contractual cashflow. 30 June 2018 Financial assets
$(000)
Cash
54,776
Loans and receivables
2,329 57,105
Financial liabilities Financial liabilities at amortised cost
10,973 10,973
Less than 6 months
Total Contractual Cashflows
54,776
-
54,776
-
2,329
2,329
57,105
54,776
2,329
57,105
Financial liabilities at amortised cost
10,973
-
10,973
10,973
Total non derivative financial liabilities
10,973
-
10,973
10,973
Net contracutal cashflows
46,132
54,776
(8,644)
46,132
$(000)
Carrying amount
On demand
54,776 2,329
Non derivative financial assets Cash Loans and receivables Total non derivative financial assets Non derivative financial liabilities
The Company’s risk management policies identify and analyse the risks faced by the Company and set appropriate risk levels and controls to monitor those risks. (i) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The Company has significant exposure to fluctuations in currency risk. (ii) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party, by failing to discharge an obligation. The entity is mainly exposed to credit risk from its financial assets, and the maximum exposure to credit risk at balance date is represented by the • Cash and cash equivalents • Trade receivables The Company manages credit risk by analysing the credit worthiness of its customers, including with external ratings if available. (iii) Liquidity risk Liquidity risk is the risk that the Company will have difficulty meeting the obligations associated with its financial liabilities. The entity’s approach to managing liquidity is to ensure that it has sufficient liquidity to meet its liabilities when they are due. Funding will be made available upon request in a prescribed format from the shareholders of the Company and therefore the Company has no significant exposure to liquidity risk. In addition, the
FINANCIAL REPORT
total amount of financial assets in the statement of financial position:
Company has a letter of credit with the BNZ to the value of $450k in favour of Datacom.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements 12. Related parties a) Key management personnel Key management personnel include the senior management and the Board of Directors. 30 June 2018 Remuneration and benefits:
Number of personnel
$(000)
17
$2,950
5
441
Senior management (full-time equivalent [FTE]) Board members
3,391 Key management personnel did not receive any remuneration or compensation other than in their capacity as key management personnel. If the number of personnel were reported as FTEs the number of senior managers would have been 8.68 FTEs. The Company did not provide any compensation at non-arm’s-length terms to close family members of key management personnel during the year. The Company did not provide any loans to key management personnel or their close family members. During the first year of operations, the Board members’ fees included a 50% loading to recognise the additional responsibilities required by the Board members in the company’s first year of operations. Indemnities and insurance In accordance with section 162 of the Companies Act 1993 and City Rail Link Limited’s Constitution, the Company has arranged Directors’ and Officers’ Liability Insurance covering directors and senior employees of the Company, for liability arising from their acts or omissions in their capacity as directors or employees. The insurance policy does not cover dishonest, fraudulent, malicious or wilful acts or omissions. The Company has also entered into a Deed of Indemnity with each director, under which the Company indemnifies the director for liabilities incurred in their capacity as a director, and that permits directors after they cease to hold office to access, subject to certain conditions, Company records relating to the period in which they were directors. Information used by directors There were no notices from directors requesting to disclose or use Company information received in their capacity as directors that would not otherwise have been available to them. b) Related party transactions and balances Related party transactions other than remuneration of key management personnel All related party transactions that the Company entered into during the year occurred within normal client/supplier relationships and under terms equivalent to those that prevail in arm’s-length transactions in similar circumstances. City Rail Link Limited entered into a ‘transitional business agreement’ during its establishment phase with Auckland Transport. The terms of this agreement were on an arm’s-length commercial basis. Balances at year end Due from
Owed to
$(000)
$(000)
Crown
-
-
Auckland Transport
-
193
-
193
30 June 2018
c) Transferred assets The Crown and Auckland Council transferred the following assets to City Rail Link Limited on 1 July 2017 in accordance with the ‘Asset Transfer Agreement’. Transferred value $(000) Land
138,184
Subterranean land
754
Furniture and fittings
547
Office equipment Capital work in progress Intangible assets
162 296,083 809 436,539
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements 13. External auditors’ remuneration Audit New Zealand fees paid for the audit of projects C3 and C7
76
Audit New Zealand fees paid for the audit of the financial statements
121
KPMG audit fees paid for the audit of the 1 July opening balance transfer
37 234
14. Capital management City Rail Link Limited’s capital is its equity, which comprises capital and accumulated surplus/(deficit). Equity is represented by net assets. City Rail Link Limited is subject to the financial management and accountability provisions of the Crown Entities Act 2004, which impose restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities, and the use of derivatives. City Rail Link Limited manages its equity by prudently managing revenues, expenses, assets, liabilities, investments and general financial dealings to ensure the company effectively achieves its objectives and purpose.
15. Subsequent events There have been no events subsequent to balance date which would materially affect the financial statements.
16. Explanation of major variances against budget Major variations from the Company’s budget figures are explained below: Statement of financial performance and statement of other comprehensive revenue and expense Budget
Actual
Variance
2018
2018
2018
$(000)
$(000)
$(000)
Rental income
1,018
3,042
2,024
Other revenue
-
543
543
1,018
3,585
2,567
Revenue
Total revenue Expenditure Personnel costs Professional fees
1,211
4,407
3,196
797
3,853
3,056
286
448
162
1,205
3,151
1,946
Depreciation
-
320
320
Impairment expenses
-
24,689
24,689
Total Expenditure
3,499
36,868
33,369
Surplus/(Deficit)
(2,481)
(33,283)
(30,802)
Total comprehensive revenue and expense
(2,481)
(33,283)
(30,802)
The Company’s net deficit was $30.8m higher than budgeted. The net effect of the following items contributed to this variation.
FINANCIAL REPORT
Rental expenses Other expenses
Expenses were higher than budgeted by $33.3m. This is mainly due to the impairment expense, general expenses, professional fees and employee costs being higher than budgeted by $24.6, $1.9m, $3m and $3.1m respectively. This is due to CRLL becoming an independent Company and budgets being set based on figures used within the ‘Project Delivery Agreement’ which focused on the cost of the project build without including normal operating costs of a company.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
Notes to the Financial Statements
Statement of financial position: Budget
Actual
Variance
2018
2018
2018
$(000)
$(000)
$(000)
990
54,776
53,786
Assets Current assets Cash and cash equivalents Receivables
3,460
4,470
1,010
Total current assets
4,450
59,246
54,796
-
398,436
398,436
584,183
142,551
(441,632)
-
1,068
1,068
Total non-current assets
584,183
542,055
(42,128)
Total assets
588,633
601,301
12,668
14,510
10,780
(3,730)
Employee entitlements
343
1,328
985
Related party payables
-
193
193
Total current liabilities
14,853
12,301
(2,552)
Total liabilities
14,853
12,301
(2,552)
573,780
589,000
15,220
576,261
622,283
46,022
(2,481)
(33,283)
(30,802)
573,780
589,000
15,220
Non-current assets Capital work in progress Property, plant and equipment Intangible assets
Liabilities Current liabilities Payables and deferred revenue
Net assets
Equity Contributed capital Accumulated surplus/(deficit) Total equity
The Company’s net assets were $15.2m higher than budgeted. This was mainly caused by a delay in acquiring properties whilst awaiting ‘Acquiring Authority’ status to be granted to City Rail Link Limited. This caused a higher-than-expected closing cash balance as well as a reduction in the anticipated value of assets.
17. Standards and interpretations issued but not yet effective The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are unlikely to have an impact on the Company’s financial position, performance and/or disclosures.
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
DIRECTOR’S INTERESTS Directors made the following entries in the Director’s Interest Register pursuant to section 140 of the Companies Act 1993 during the year end of 30 June 2018.
DIRECTOR
ENTITY
Sir Brian Roche Chairman
Wellington Gateway General Partner No 1 Ltd
Special Purpose Vehicle
(Chairman)
Chairman
Wellington Gateway General Partner No 2 Ltd
Special Purpose Vehicle
Chairman
Antarctica New Zealand
Crown Entity
Chairman
Tait New Zealand Limited
Technology Company
Chairman
Hugh Green Industries Limited
Property Ownership and Development including farming operations
Independent Chairman, Project Steering Group
High Capacity Metro Train PPP
Victoria State Government
Peer Review Group Advisor
Melbourne Metro Rail Authority
Victoria State Government
Board Member
Sydney Metro Assurance Board
New South Wales State Government
Secure Future Wiri Holdings Ltd
Limited Company
Director
Secure Future Wiri Ltd
Limited Company
Director
Infrared Infrastructure NZ (WGP) Ltd
Limited Company
Director
Wellington Gateway General Partner No.1 Ltd
Limited Company
Director
Wellington Gateway General Partner No.2 Ltd
Limited Company
Director
Crown Irrigation Investments Ltd
Crown Entity – Limited Company
Lay Canon
Christ Church Cathedral, Nelson, Anglican Diocese of Nelson
Anglican Church of New Zealand
Lay Member
Lawyers Standards Committee, Nelson
The Law Society
Director & Chairman (ceased 30/10/17)
Naylor Love Enterprises Ltd (and subsidiary companies: Naylor Love Construction Ltd, Naylor Love Properties Ltd, Naylor Love Ltd)
Private company
Director & Deputy Chairman
Southern Response Earthquake Services Ltd
Company – Crown-owned company (Schedule 4A, Public Finance Act)
Director
Chorus Ltd
Publicly listed company
Director
Chorus New Zealand Ltd
Subsidiary of publicly-listed Chorus Ltd
Director
Summerset Group Holdings Ltd
Publicly listed company
Director
Steel & Tube Holdings Ltd
Publicly listed company
Director
OnePath Life (NZ) Ltd
Company – subsidiary of ANZ Bank group
Independent Chairman
Te Rūnanga O Ngāi Tahu Audit & Risk Committee Committee of Te Rūnanga O Ngāi Tahu
Board member
Hockey New Zealand
Incorporated society
Director
Tilt Renewables Ltd
Publicly listed company
Brian Harrison Director
Karen Jordan
Anne Urlwin
FINANCIAL REPORT
BOARD/COMMITTEE MEMBERSHIPS
Russell Black
POSITION
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
AUDIT REPORT
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AUDIT REPORT 53
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
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CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
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AUDIT REPORT 55
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CRLL0078 Annual Report 2017-18
CITY RAIL LINK LIMITED ANNUAL REPORT 2017 - 2018
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CRLL0078 Annual Report 2017-18
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