Hawke’s Bay Children’s Home Annual Report 1992

One Hundredth Annual Report

of the

HAWKE’S BAY
CHILDREN’S HOME

(Undenominational)

To be presented at the
ANNUAL MEETING
To be held in the
FOUNDERS ROOM,
HB ART GALLERY, HERSCHELL STREET, NAPIER

on
Wednesday, 23rd September, 1992
at 2.00 p.m.

OFFICE:
Maritime Building, Browning Street, Napier
(P.O. Box 259)

CHILD CARE CENTRE
“Swinburn House” 3a Allan Berry Avenue, Napier

Page 1

HAWKE’S BAY CHILDREN’S HOME

FOUNDATION

The Hawke’s Bay Children’s Home was instituted by the late Mr H.S. Tiffen in 1892, with the object of providing for, educating and training orphaned, neglected and destitute girls, and in 1907 activities were extended in order that boys similarly conditioned might be provided for.

Difficulties were experienced in finding suitable additional accommodation but fortunately assistance became available from the France Trust. This Trust was formed in 1890 for the support of and the education of destitute children in the town of Napier and Petane. In 1909 the trustees offered to construct a suitable building in Priestly [Priestley] Road, Napier and to lease it to the Hawke’s Bay Children’s Home at a reasonable rent. This became the girls’ home and was known as Randall House.

In 1912, a further site was leased in Priestly Road and premises erected thereon, later called Gordon House, These premises were occupied for nearly 40 years as a Boy’s Home.

As the years passed by the Trustees felt that, owning to the limited time during which children could be provided for at the existing Homes, it was desirable to obtain additional premises, and finally 50 acres of land were purchased at Eskdale, and in 1924 the Home, known as France House, Eskdale, was opened. This building was destroyed in the earthquake disaster of February, 1931, and replacement was completed by a new building officially opened by His Excellency Lord Bledisloe in January, 1933. This House enabled the Trustees to keep the boys to an older age than was possible when only town premises were available.

It became evident, as time went on, that the premises in Priestly Road, known as Randall House, had become quite unsuitable for a Girls’ Home and the Trustees, in 1941, purchased the property in Napier Terrace known as Randall House. After making necessary alterations and additions the premises became the Girls’ Home.

In 1949 the small boys of Gordon House were moved to Randall House, which then catered for girls and boys up to the age of 11 years. At the age of 11 the boys went to France House. The girls remained at Randall House throughout their stay at the Home.

By 1965 it was found that the number of children in Randall House had fallen to such a low level that this home had become a serious economic liability. In addition staff were becoming increasingly difficult to obtain. Considerable difficulty was also being experienced in dealing with the older girls. For these reasons the Trustees decided to adopt the family home principle and to replace Randall House by two new family homes each capable of taking six children.

Accordingly Randall House was sold and the Taradale Family Home was opened in June, 1966, and the Havelock North Family Home in September, 1966. Following the evident success of these two family homes, a third one was built in the Hastings suburb of Flaxmere and this was opened in January, 1972.

In 1973 it became evident that France House was no longer serving the purpose for which it was established. The number of boys had fallen to a very low figure and the substantial cost of keeping the home running could no longer be justified. France House was therefore sold to the Government in September, 1973.

In 1974 the Trustees decided to build a Day Care Centre to take children at a younger age than was possible in the family homes, The Hawke’s Bay Education Board made a site available adjoining the Pirimai Primary School in Napier and the building was opened in May, 1978. Following amalgamation with the Onekawa Child Care Centre the staff and children from that Centre moved into the new building when it was opened. Only “at risk” children are now admitted.

In 1990, following the introduction of the Children, Young Persons and their Families Act, the children in the family homes became the responsibility of the Department of Social Welfare, As a result. the Edgley Home was no longer required and was closed and sold. The Nelson and Rochfort homes were leased to the home parents who continued to care for the remaining children.

Page 2

TRUSTEES & COMMITTEE as at 31st MARCH, 1992

TRUSTEES

Chairman: G. E. STEERE
R. de DENNE
F. LOGAN
R. de DENNE
R. F. LOGAN
J. W. MACKIE
R. S. NAIRN
R. S. NATUSCH
R. J. PARSONS
G. A. PLUMMER
M. W. ROBERTSHAWE
J. S. RUSSELL
H. M. SWINBURN
H. W. VAN ASCH
Dr. A. M. VICKERMAN
Secretary/Manager: G. T. KING

“Swinburn” House Committee:
G. E. STEERE (Chairman)
J. W. MACKIE
G. A. PLUMMER
M. W. ROBERTSHAWE
DR A. M. VICKERMAN
Supervisor: MISS J. HEYLAND-PATERSON

Honorary Life Members:
MESSRS P. H. CLARK, J. F. NELSON and D. M. GREENWOOD

Page 3

HAWKE’S BAY CHILDREN’S HOME

The Trustees have pleasure in submitting to the subscribers the 100th Report and the Accounts for the year ended 31st March, 1992.

CENTENARY

For any organisation to be able to achieve one hundred years of successful operation is worthy of note, and this applies particularly to a charity such as ours. The growth from small beginnings to the present strong position is a fine record and has been due to several factors.

During the whole of the period the generous support in many forms received from subscribers and supporters has enabled the Board to provide the finance necessary for the care of children in need. This applies particularly to the earlier years when little or no assistance was received from the Government and difficulty was often found in meeting day to day expenses. Therefore whatever congratulations are awarded at least some should go to the subscribers and supporters.

Another major factor was the voluntary services given by the many members of the House Committee who gave their time and attention to the affairs of the Home during this long period. They attended to the routine problems which always arise and which must be attended to promptly if the Home is to operate efficiently. and they also had the difficult duty of deciding which children to admit or discharge. To them, therefore. must go a large share of congratulations.

The Trustees had the responsible but probably not so onerous duty of handling the finances. and the present strong financial position of the Home is the proof of their ability and dedication.

Finally, reference must be made to the uncomplaining service given by the staff although frequently overworked and. especially in the earlier years, usually underpaid.

1991/92 YEAR

It has again been a busy year. Swinburn House has been operating to capacity and the home visiting project has proved so successful that the pressure on our home visitor is causing concern. It has been a relief to the Board to see that the Government and the community in general have become more aware of the importance of preschool education where young children, for whatever reason. are not receiving adequate home care. Centres such as Swinburn House offer the only chance of giving them the care and training which is so vital if they are to fit successfully into the school system when they reach school age. It is a constant regret to the Board that they cannot accept all the children waiting for

Page  4

admission, but the increasing pressure on the Home’s finances precludes any further expansion.

Home visiting has to be restricted to the homes of the children at present in the Centre, although this field is wide open. Unfortunately, only experienced and capable people can provide the tact and sympathy which are so necessary if they are to be accepted by the parents. Such people are hard to find.

The Board hopes the Government will signify their acknowledgement of the importance of preschool training by increasing the scale of their financial support for centres operated by charities such as ours especially in view of the increasing pressure on their finances now being experienced.

ANNUAL ACCOUNTS

The Accounts for the year ended 31 March 1992 will be found at the end of the Report.

As anticipated, falling income and rising costs have resulted in a loss for the year, the first since 1974. The Income and Expenditure Account shows a deficit of $33,836 compared with a surplus last year of $31,595. but it is pointed out that last year’s surplus was achieved only after crediting $32,164 for excess depreciation following the revaluation of assets. If this is disregarded net income fell by $33,266 due mainly to the drop in interest received on investments and increased costs. Expenses increased from $104,124 to $132,349 and the increased loss for Swinburn House of $30,065 was largely responsible for this. The net rents from Rochfort and Nelson House and from the Allen Farm are close to last year’s figures.

INVESTMENTS

Investments in first mortgages fell substantially during the year as more mortgages were repaid on maturity. This is a general trend in the financial world at present and is expected to continue. As interest rates fall, fewer people are interested in mortgages as investments. Both the Wrightson Finance and National Mutual Life debentures were repaid during the year and the proceeds have been invested in term deposits with the ANZ Banking Corporation.

FAMILY HOMES

As last year, the Rochfort and Nelson family homes were rented to the Caregivers and the Hawke’s Bay Children‘s Home continued to be responsible for rates, repairs and insurance.

Subsidies Received in Advance

The present system of bulk payments by the Department of Education involves payments of 75% of the estimated grant for four months in advance. A reconciliation and final payment is made in June of each year.

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SWINBURN HOUSE

Finance

The deficit for the year increased from $67,912 to $127,050, a difference of $59,138. but as last year’s figure was arrived at after deducting a credit for excess depreciation recovered of $29,073 the actual difference was $30,065.

The subsidy received from the Department of Social Welfare rose by $12,480 but the Department of Education bulk grant fell by $5,970 mainly due to the closure of the Centre for an extra week in January. Donations received included a grant from the Gwen Malden Trust of $12,000 for equipment. Grants were also received from the following –

Webb Foundation   $500.00
Kingdom Trust   1,000.00
Napier Lions   550.00
J. R. McKenzie Trust 1,000.00
Napier City Council   2,362.00
Napier West Rotary Club   250.00

Expenses increased from $249,227 to $291,439. Expenditure on equipment rose by $11,588 to bring this up to the standard required by the Department of Education. The cost of provisions rose from $15,349 to $16,102 but it is considered essential that the children receive at least one good meal a day and breakfasts are also now being provided more often. Travel allowance $2,737 refers to home visiting. Salaries and wages totalled $222,870, an increase of $27,031 and this perhaps calls for some comment. All staff are now on or above Award wages and the proportion of trained staff has increased. A bigger staff is required than in a kindergarten as the children are provided with lunch which has to be supervised. Other factors were the inclusion of a home visitor for a full year and the engagement of an office assistant on a part time basis.

This deficit for Swinburn House for 1992 of $127,050 is causing the Board concern, particularly as the Home’s other income is now insufficient to cover it. Grants from charitable organisations have fallen since the end of the year due to the increased pressure they are under from other applicants. It is therefore clear that these deficits will continue unless additional assistance is received from the Government or, failing this, expenses are reduced. As wages account for the major part of the expenses, this is the area which the Board will have to give their attention to, if necessary. by reducing the number of children in the Centre. This, of course, is a last resort and will only be adopted if other sources of finances are not found.

Page 6

Staff

It has again been a very busy year for the staff and the Board are grateful to them for their dedication and patience.

Under the previous regulations Centres were required to have a specified proportion of trained staff and those holding a Primary School Teacher’s Certificate were accepted as holding the necessary qualification. The new regulations require that all trained staff hold Early Childhood Care qualifications and centres are to arrange for the staff to attend the necessary courses as soon as possible. However, some difficulty has been experienced due to the current shortage of instructors.

The cost of these courses for our staff is met by the Home and as we have six trained staff and three in training, the expense is not inconsiderable.

With the type of child entering Swinburn House our staff are subjected to more stress than in ordinary centres and it was therefore decided to give them an extra week’s annual holiday. It was found possible to arrange this by closing the Centre for another week in January as it has been found that few children attend during the school holidays.

Equipment

As mentioned earlier there was substantial expenditure during the year on equipment to meet the standards required by the Department of Education. It will also be appreciated that the wear and tear on toys is considerable. Fortunately a grant was received from the Gwen Malden Trust to cover the additional cost for which the Board were most grateful.

Repairs

A number of minor repairs were carried out during the year including the reconstruction of the sandpit. Substantial assistance towards this was received from the members of the Napier West Rotary Club in the form of a working bee and also with a cash grant.

Intrusion into the Centre by unauthorised persons has been a continuing worry for the staff over the years. This is usually from aggressive parents, frequently separated, and having no legal access to their children. This places the staff without warning in a very difficult position. A security system has therefore been installed allowing the staff to control entry to the building, giving them time, if necessary, to call the police.

ELECTION OF TRUSTEES

At the Annual General Meeting it will be the duty of subscribers to elect three Trustees. Messrs de Denne, Van Asch and Mackie are due to retire in accordance with the rules, but are eligible and offer themselves for re-election.

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ANNUAL MEETING

The Annual Meeting of subscribers will be held in the Founders Room, Hawke’s Bay Art Gallery, Napier, on Wednesday, 23rd September, 1992, at 2pm. At the conclusion of the meeting a commemoration of the centenary of the Home will be held.

Afternoon tea will be provided.

THANKS

Many people and organisations gave their assistance to the Home during the year. The Trustees wish to thank in particular the Board’s of the Kingdom Trust, the JR. McKenzie Trust, and the Webb Foundation for contributions. Valuable financial assistance was also received from the Rotary Club of Napier West, the Malden and Motere Trusts and the Napier City Council.

Many other acts of goodwill and voluntary service were received and the Trustees hope these few words of thanks will be accepted as expressing their appreciation.

They also wish to thank the officers of the Departments of Social Welfare, Health and Education for their assistance during the year. Dr Vickerman has again given her professional services at Swinburn House and for these, special thanks are given.

G.E. STEERE
Chairman

HAWKE’S BAY CHILDREN’S HOME STATEMENT OF ACCOUNTING POLICIES

General Accounting Policies:
The general accounting policies as recommended by the New Zealand Society of Accountants for the measurement and reporting of income and financial position on an historical cost basis have been used in the preparation of these Accounts.

Particular Accounting Policies:
The following particular accounting policies which materially affect the measurement of net income and the financial position have been applied.

Fixed Assets have been recorded as under:
Land – at last Government Valuation
Buildings   Homes – at Government Valuation less Depreciation
Tutira – at Cost less Depreciation
Allen Farm – at Government Valuation less Deprecation
Furniture – at Cost less Depreciation
Vehicles – at Cost less Depreciation

Depreciation: Buildings, Furniture and Vehicles have been depreciated as under: –
Buildings – 2.5% Cost price
Furniture – 10% Book Value
Vehicles – 20% Book Value

Changes in Accounting Policies:
There have been no material changes in accounting policies since the previous Annual Financial Statements

REPORT OF THE AUDITORS TO THE TRUSTEES OF THE HAWKE’S BAY CHILDREN’S HOME

We have audited the Accounting Records of the Hawke’s Bay Children’s Home for the year ended 31st March, 1992 and have obtained all the information and explanations we have required.

Our examination has not disclosed any unrecorded receipts or payments but in common with other organisations of a similar nature, complete internal control over certain of the Society’s activities is not practicable, and for this reason we are unable to confirm that all receipts and payments have been recorded.

Subject to the matter referred to in the preceding paragraph. In our opinion, and according to the best of our information, and the explanations given to us, and as shown by the said Accounting Records the attached Balance Sheet and Income and Expenditure Accounts are properly drawn up so as to exhibit a true and fair view of the state of the Trust affairs for the year ended 31st March, 1992.

KPMG PEAT MARWICK – Chartered Accountants, Auditors.

8th June 1992

HAWKE’S BAY CHILDREN’S HOME

BALANCE SHEET AS AT 31st MARCH, 1992

Last Year

Accumulated Funds
Balance 31/3/91   1,160,616   1,078,795
Surplus (deficit) for Year   (33,836)   31,595
Legacies and Gifts   10,200   25,084
Staff Retirement Fund withdrawn   –   25,143
1,136,980   1,160,617
E. Bibby Trust 5,130 5,130
Asset Revaluation Reserve   319,932   319,932
1,462,042   1,485,679

Represented by:

Current Assets
Cash on Hand   600   200
Sundry Debtors   11,076   10,596
Accrued Interest   19,665   19,337
Bank of NZ, Napier   29,088   2,149
60,429   32,282

Less Current Liabilities
Sundry Creditors   17,076   13,452
G.S.T. Payable   1,875   989
Subsidies Received in Advance   24,509   17,142
43,460   31,583
Working Capital   16,969   699

Investments at Cost:
Mortgages   202,300   294,500
Trustee Savings Bank   200   200
BNZ Fixed Deposit   175,000   175,000
ANZ Fixed Deposit   297,964   –
Deposits on Call   43   104,839
Auckland Health Board Stock 13.63% 15/7/94   26,024   26,024
Wrightson Finance Ltd Debentures   –   23,336
National Mutual Life Debentures   –   108,495
701,531   732,394

Fixed Assets:
Land at Govt. Valuation   344,300   344,300
Buildings at Cost or Valuation less depreciation   364,826   374,574
Furniture at Cost or Valuation less depreciation   22,262   18,519
Motor Vehicle at Cost less depreciation   12,154   15,193
743,542   752,586
Nett Assets   $1,462,042   $1,485,679

HAWKE’S BAY CHILDREN’S HOME

INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31st MARCH, 1992

Last Year

Income:
Subscriptions & Donations   2,290   2,155
Interest   87,886   93,104
Maintenance Received   –   6,043
Subsidies Received   –   3,825
Rents   27,536   27,814
Swinburn House:
Donations Received   17,763   12,126
Subsidies Received   146,626   140,116
Depreciation Recovered   –   34,426

Income Accounts:
Estate H. E. Grainger   637   597
Estate A Taylor   5,000   6,000
France Trust   2,700   8,3337   1,700
Total Income   290,438   327,906

Expenditure:
Family Homes and Farm
Domestic   1,218   2,009
Insurance   1,708   1,907
Rates   4,392   5,755
Repairs   100   1,431
Board   –   5,499
Clothing   –   332
Travelling Expenses   – 231
Wages   –   7,418   17,768

Last Year

Swinburn House:
Electricity   1,601   1,557
Equipment & Stationery   15,661   4,072
General Expenses   2,449   2,308
Home Visiting Expenses   2,738   –
Household Expenses   5,000   3,243
Insurance   4,088   3,329
Provisions   16,102   15,349
Repairs   5,718   8,263
Telephone   1,142   1,118
Vehicle Expenses   4,849   4,550
Salaries & Wages   222,871   195,840
282,219   239,629

Administration Expenses:
Audit Fees   3,090   2,855
General Expenses   976   1,466
Legal Expenses   134   108
Insurance   161   153
Printing & Stationery   1,150   1,434
Secretary’s Salary   14,000   15,032
19,511   21,048

Depreciation:
Buildings   9,748   9,748
Furniture & Fittings   2,339   2,058
Vehicles   3,039   3,798
Losses on Sale Assets   –   2,262
15,126   17,866

Total Expenditure   324,274   296,311
Surplus (Deficit) for Year   $(33,836)   $31,595

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THE HAWKE’S BAY CHILDREN’S HOME

LIST OF ANNUAL SUBSCRIBERS

Absolom, A. Richard
Agnew Refrigeration Ltd.
Atchley, A. D. V.
Baker, P. I.
Beamish, R. C.
Bell, L. G. R.
Benjamin, Dr R. A.
Blundell, Mrs H. M.
Boyle, S. G.
Bryant, Mrs K.
Carpenter, W. T.
Chambers, J. M.
Chapman, Mrs G. H.
Clark, P. H.
Coleman, Mr & Mrs A. J.
Congdon, Mrs E. M.
Cowlrick, Mrs D.
Danvers, H. C.
De Denne, Mr & Mrs M.
Dixon, Mrs M.
Ellis, Mrs M. E.
Farquharson, Mrs W. B.
Faulkner, Mrs R. C. B.
Feltham, Dr & Mrs C. P
Feltham, Dr P.
Field, Mrs L. F.
Giblin, P W.
Gilbertson, Mrs E. E.
Glenny, J. G.
Gordon, J.
Greenwood, Mr D. M.
Gregory, Mrs G. B.
Groome, M. E.
Hartley, G. L.
Herrick, Mrs L. M.
Hodgkinson, H. E.
Hogg, Miss B. R.
Holt, C. D.
Kale, Mrs D V.
Kennedy, A. B.
Kinnear, J.
Langley, Mrs J. E.
Lattey, P. B.
Lee, Mrs M. E.
Liddington, H. A.
Lockhart, T. F.
Logan, Mr R. F.
Lowe, Misses P. E. & V. M.
Lucas, Mrs E. G.
Mackie, J. W.
Mackie, Mrs J. C.
Masters, Mrs A. D.
Miller, G. F.
Morton, Mrs P.
Motley, Mr P. J.
McGavock, W. Ltd.
Nairn, Mr & Mrs R. S.
Natusch, Mr & Mrs R. S.
Nelson, Mr & Mrs J. F.
Northe, B. G.
Oliver, C. K.
Osborne, H.
Parsons, Mr & Mrs R. J.
Paton, Dr W. B.
Paulsen, M. J.
Pearmain, G. E.
Pishief, Dr S.
Plummer, G. A.
Retemeyer, Miss M.
Robertshawe, M. W.
Rosenberg, Mrs J.
Russell, Mr & Mrs J. S.
Sabiston, Dr D. W.
Steere, G. E.
Stothart, B. D.
Symes, T. W. M.
Thom, I. H.
Thomas, C. G.
Tucker, C. W.
Van Ash, D. W.
Van Asch, H. W.
Vickerman, Dr A. M.
Waring, Mrs L.
White, Mrs M. A.
Wilkinson, Mrs N. W.
Whyte, Miss G. M.
Yule, B. P.

McMillin Craig Limited, Napier