Detailed guidance for entering financial statements.
Important: If your organisation is a TEO subsidiary, a council-controlled organisation, a regional gallery or museum, funded less than $75,000 per annum by CNZ, or a multi-national subsidiary, you are not required to complete financial projections.
Financial performance projections (profit and loss)
- Submit a projected statement of financial performance for 30 June and 31 December of the year ahead.
- The projections entered for 30 June should cover the 6-month period from 1 January to 30 June,
- The projections entered for 31 December should cover the 12-month period from 1 January to 31 December.
- The Statement of Financial Performance is for your organisation as a whole, not just the CNZ-funded aspect. Include all infrastructure costs, expenditure and income, even if they are not directly related to the CNZ-funded activities.
- The layout of this section should be similar to your organisation’s annual accounts, although we require revenue and costs to be classified as either fixed or variable. Don’t forget to enter and check these sub-totals!
Financial position projections (balance sheet)
- Submit a projected statement of financial position for 31 December of the year ahead.
- Check to make sure your equity total matches your net assets! That’s the balance part of the balance sheet.
- If your projections result in a negative working capital amount, you plan to owe more money than you have easy access to (e.g. within 12 months) at the end of the year. This could mean you’ll have trouble with cash flow during the year.
- If your Revenue In Advance is higher than your Cash & Cash Equivalents + Short Term deposits, you might have dipped into money meant for other purposes. This could be problematic if you have to return the revenue received in advance (e.g. if a funded project gets cancelled and funding must be returned, or if a performance gets cancelled and you need to return ticket sales)
- If you have a reserves policy, it’s good practice to hold these funds separately (e.g. in a term deposit – this might appear as a current asset if you want to have access to it within 12 months, as a non-current asset if you’re confident you won’t need it within 12 months, or as a mixture of the two).
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