2007/08 annual report

DRUG FREE SPORT NEW ZEALANDANNUAL REPORTANNUAL REPORT2007/2008

� Drug Free Sport New Zealand - Annual Report 2007/2008 Drug Free Sport New Zealand - Annual Report 2007/2008 �

� Drug Free Sport New Zealand - Annual Report 2007/2008 Drug Free Sport New Zealand - Annual Report 2007/2008 �

Cover photo: Basketball New Zealand

Drug Free Sport New ZealaND – Contentstable of contents

aNNual report �007/�008

Report from Chairperson – Prof David Gerrard .................................................................................................... 2

Report from Chief Executive - Graeme Steel ........................................................................................................ 3

Programme Summaries and Highlights ............................................................................................................... 5

Statement of Service Performance .................................................................................................................... 6-7

History of Testing Programme ..............................................................................................................................8

Testing Year Summary by Sport ............................................................................................................................9

Summary of Violations ........................................................................................................................................10

Athlete Survey Results .........................................................................................................................................11

Directory .............................................................................................................................................................12

FiNaNcial StatemeNtS

Statement of Responsibility .................................................................................................................................13

Statement of Financial Performance ....................................................................................................................14

Statement of Changes in Equity ..........................................................................................................................14

Statement of Cash Flows .....................................................................................................................................15

Statement of Financial Position ...........................................................................................................................16

Notes to Financial Statements ........................................................................................................................17-25

Auditors Report ............................................................................................................................................. 26-27

Drug Free Sport New ZealaND - contact Details

Phone: (64) 9 574 6370 Email: [email protected]: (64) 9 574 6372

Address: Building 701.5 PO Box 18 339Tamaki Campus Glen InnesUniversity of Auckland Auckland 1743Morrin RdGlen InnesAuckland 1072

New Address and contact numbers: (from 1st Dec 2008)2nd Floor PO Box 17 451321 Great South Road GreenlaneGreenlane Auckland 1546Auckland 1051

Phone: (64) 9 582 0388Fax: (64) 9 580 0381

Hotline for Drugs in Sport and Medication Information:0800 DrugFree (0800 378437)www.drugfreesport.org.nz

� Drug Free Sport New Zealand - Annual Report 2007/2008 Drug Free Sport New Zealand - Annual Report 2007/2008 3

This has been another year in which New Zealand athletes have demonstrated that it is possible to succeed drug free, despite a litany of doping infractions on the international scene. That is not to say that we have been completely clear of doping cases, however these were almost exclusively confined to the use of cannabis plus anabolic steroid use by overseas athletes visiting New Zealand. With pride we can say that no New Zealand athlete has tested positive on the international stage.

However, the failure of our athletes to understand the implications of cannabis use while competing remains a serious concern and a mystery. This would suggest the need for a fresh approach to educating the sporting community on cannabis, its place on the prohibited list and the implications of its use.

2007 has been a particularly significant year for Drug Free Sport New Zealand (DFSNZ) and its stakeholders given new legislation that empowered the organisation to implement the World Anti-Doping Code. This enabled sports to seamlessly link with our operations through the adoption of a common set of Sports Anti-Doping Rules.

DFSNZ is now charged with the responsibility to investigate allegations of anti-doping rule violations with a capacity for meaningful collaboration with the New Zealand Customs, Police and other agencies. Already, three foreign athletes have been intercepted in possession of anabolic steroids and these cases have been referred to the relevant International Federation for prosecution. Other investigations at a local level revealed no evidence of doping, adding further to an impression of a healthy national sporting environment. We are very grateful for the manner in which Prestige Protection has undertaken this work in a manner that maintains the trust and mutual respect we have built with the sports community.

Education continues to be our “flagship”. An exciting new partnership with the Youthtown organisation will provide additional funding for the existing education programme. This will take education to a new level through the promotion of our athlete “pledge” programme, utilising media tools including radio and street posters. We anticipate a long, mutually beneficial relationship with Youthtown and acknowledge the outstanding work done by our Education Officer, Andrew Sylvester.

I would be remiss in overlooking the important contributions of the many people who support DFSNZ. The Hon. Trevor Mallard, the Minister for Sport and Recreation at the beginning of the year, was a great supporter and an outstanding advocate for clean sport. We owe him a tremendous debt. His successor, the Hon. Clayton Cosgrove, has displayed similar interest and enthusiasm. I offer him our added thanks for the manner in which he quickly turned his mind to anti-doping issues and proved a very effective WADA Executive and Board member and a contributor at the national level.

SPARC and the NZ Olympic Committee have remained staunch allies in anti-doping work. We wish Nick Hill well following his departure from SPARC and thank him for his support whilst

welcoming Peter Miskimmin, his successor and someone who has always displayed a strong interest in our issue. I must also acknowledge the high quality work of Andrew Fieldsend a SPARC expert in policy development and anti-doping matters. Barry Maister as Secretary General of the NZOC always finds time to engage in all anti-doping matters as well as providing personal and organisational support.

Closer to home we have welcomed Doctors Stewart Walsh and Lesley Rumball to the Board of DFSNZ. Both have made quality contributions and Lesley has made extra efforts to ensure she is involved despite being resident in the United Kingdom this year. Michael Heron and Melodie Robinson now provide important experience to the work of the Board. Collectively they provide me with guidance and wise counsel.

After fifteen years of involvement with DFSNZ, Dr Matt Marshall resigned from his position on the Therapeutic Use Exemption (TUE) Committee this year. Few have contributed as greatly to anti-doping work in New Zealand and internationally. We owe Matt a deep debt of gratitude, wish him well, and warn him that we may still seek his advice from time to time. We are very pleased to welcome Dr Cathy Ferguson to that Committee to assist Dr Tony Edwards and I in what is likely to be an even more demanding role in 2009. Sarah Arrell provides the TUE Committee with common sense and timely support far beyond her job description.

We could not operate a high quality programme without the commitment of other dedicated staff. During the year two key members, Dave Ho and Stephanie Hoek, left to further their careers. I thank them for their contributions and wish them well. New staff; Mariah Meagher, Kristin Farrell and Julie Bennett have picked up the baton and, with the aid of their more established colleagues and our brilliant team of testing officials, will take the organisation forward.

Graeme Steel and Jayne Kernohan continue to provide the collective wisdom and sector experience that stamps DFSNZ as one of the leaders in international antidoping activity. Jayne makes a crucial contribution to the Oceania Regional Anti-Doping Organisation (RADO) and provides us with senior management skills and knowledge. Graeme has become President of the International Association of Anti-Doping Organisations (ANADO), an appointment that reflects peer respect and the breadth of his knowledge in the area. We have, for so long, just taken for granted the immeasurable contribution made by Graeme and Jayne. DFSNZ is an organisation committed to working with athletes, coaches, doctors and the sporting community to overcome the threat that doping poses to sport. Anti-doping measures developed globally, and in good faith, do not always fit with our environment and sometimes these initiatives test important relationships. However, we remain committed to our stakeholders and to the efforts of WADA in ensuring the adoption of reasonable and effective measures in a battle against drugs we are determined to win. I am honoured to provide some stewardship in this regard and publicly thank those who have supported our cause.

David gerrard - CNZM OBE MBChB(Otago) FACSP

ChairpersonDRUG FREE SPORT NEW ZEALAND

report oF tHe cHairperSoN – Prof. David Gerrard CNZMre

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This year has seen Drug Free Sport NZ (DFSNZ) operate under new legislation and apply the Sports Anti-Doping Rules. This has opened up a whole new menu of possible actions to detect doping and provided powers to investigate violations beyond simply those arising from tests.

testing programmeAthletes contending for selection to the Olympic and Paralympic Teams have been a particular point of focus during

the year and the NZOC rule requiring all those who wish to be selected to be in the testing pool at least 6 months prior, while providing challenges, has proved a vital element to the integrity of the programme.

We met a reduced target of a minimum of 1,000 tests for the year. This reduction is in recognition of the very low number of serious doping cases revealed by the testing programme. The response has been to ensure that the fewer tests are even more accurate and to transfer some resources into the investigations area.

After many months of preparation, we were able to implement the “Simon” software system to assist in the management of our programme. In particular this has enabled us to roll out a more rigorous “whereabouts” programme to track our athletes. The programme, developed by the US Anti-Doping Agency, provides tremendous benefits but continues to be limited by the slow pace in which compatibility with the WADA “ADAMS” software has been able to be established.

The results of the testing programme continue a pattern which has been emerging over a number of years. Cannabis completely dominates the list of positive tests and DFSNZ, with the support of the sports community, has urged WADA to modify its approach to this substance so that genuinely effective and constructive measures can be adopted to limit its use by athletes. (For more information on this refer to the DFSNZ prohibited list submissions at www.drugfreesport.org.nz)

The most serious doping problem revealed related to three Indian Powerlifters attending the Commonwealth Championships in Christchurch who all tested positive for anabolic steroids. This blatant cheating undermines much of the good work which officials in New Zealand have done to change the image of that sport.

Another sport with an image issue is bodybuilding and unfortunately the NZ Federation of Bodybuilders has not been able to see their way clear to adopt the Sports Anti-Doping Rules or equivalent. It appears that for some reason they have decided that what all other sports have accepted should not apply to them and their members have been misinformed about what the Rules contain. At the time of writing this report DFSNZ is unable to assist this organisation with the serious problem that testing in the past has revealed and this is very disappointing to us and many of the NZFBB members who have contacted us.

Preparations have begun for the implementation of new requirements in 2009 flowing from changes to the Code and the International Standards for Testing and Therapeutic Use Exemptions. Compliance with whereabouts requirements will

place real challenges on both DFSNZ and the athletes who are subject to it. It involves an extraordinary amount of time and effort and it is to be hoped that some measurable benefits will accrue.

investigations programmeWith the new Act coming into force on July 1 2007 DFSNZ, for the first time, had full responsibility and authority to investigate all forms of anti-doping rule violations. Preparations for this included:• Development of a manual to guide any investigative process.• Retention of a private investigation company to gather evidence

of potential rule violations.• Engagement with other authorities with common interests

such as Med Safe and Customs with whom an MOU has been developed (although not yet signed).

• Establishment of an internal “Review Committee” to consider evidence presented and determine whether or not it was sufficient to take an allegation forward.

Following preliminary considerations five matters have been taken forward for investigation, these range from suggestions of involvement by coaches to evidence that a doctor had provided steroids to athletes. In addition, it was very disappointing when a prominent cyclist made serious allegations about doping in New Zealand sport but was subsequently not prepared to respond to approaches by DFSNZ, let alone provide any information to support the initial allegations. Comments such as this, which are not substantiated, are not helpful and raise more doubts about the credibility of the person making them than about the sporting environment they are directed at.

Other investigations did not always manage to obtain all information sought, however, the Review Committee has ultimately determined that only one allegation should be proceeded with. In that case, evidence of possession obtained by Customs when intercepting athletes entering the country, was provided to the International Powerlifting Federation as the anti-doping organisation with jurisdiction.

I should acknowledge the advice and support of our legal advisor Paul David as we entered into this potentially difficult new phase of operation and also Prestige Protection whose staff have understood well the conflicting priorities of obtaining information and retaining the confidence and support of athletes and the rest of the sporting community.

education programmeDFSNZ has continued to take a two pronged approach to its education programme. On the one hand we have sought to improve the quality and accessibility of the resources that ensure athletes and support staff know what is necessary to comply with the anti-doping programme. This includes ongoing development of the text service providing feedback on the status of medications, improvements to the online learning modules enabling athletes to meet their obligations to be educated and so on.

At the same time we have endeavoured to establish a much broader presence in an effort to ensure that the whole sporting community embraces drug free sport and supports athletes who choose to compete clean.

report of the chief executivereport oF tHe cHieF executive – Graeme Steel

4 Drug Free Sport New Zealand - Annual Report 2007/2008 Drug Free Sport New Zealand - Annual Report 2007/2008 �

The year has seen the completion of an innovative partnership with Te Papa through which DFSNZ supported a museum exhibition titled “The Poisoners”. This proved a very satisfactory exercise culminating in the receipt of the 2007 New Zealand Sponsorship Award in the Experiential Agency Best Special Project category.

Towards the end of the year a new partnership with Youthtown was put in place and this has the potential to develop into a highly productive long term relationship given the overlapping objectives of the two organisations. Initially the focus has been on promoting DFSNZ’s “pledge” programme which provides a mechanism for all athletes to commit to competing clean. Athletes can demonstrate that commitment by wearing a distinctive, green wrist or sweat band. Athletes have played a key role in contributing to this and other DFSNZ programmes and none more so than Sarah Ulmer whose ongoing commitment and support are of huge value.

international programmeThis has been an extremely busy year as WADA have undertaken comprehensive reviews of the Code itself and the associated International Standards. This has been a major undertaking for WADA and also challenged DFSNZ to provide compelling submissions following consultation with our fellow signatories and key stakeholders. The outcome has seen a significantly improved Code but International Standards which, in some respects, we believe to be unnecessarily intrusive and threaten the co-operative relationship we have with our clean athletes - not to mention medical and other support staff.

DFSNZ attended the WADA World Conference in Madrid as part of a strong New Zealand delegation including the Minister for Sport and Recreation, Hon. Clayton Cosgrove, Associate Professor David Gerrard (DFSNZ Chair), Graeme Steel (DFSNZ Chief Executive),Sarah Ulmer (WADA Athlete Committee) and Andrew Fieldsend

(SPARC senior policy advisor). New Zealand continually promoted an athlete perspective into discussions, including providing a voice for Sarah in the official “intervention”, as well as urging a sense of realism over what could be asked of Anti-Doping Organisations.During the Madrid Conference DFSNZ also represented New Zealand at a meeting of the “IADA” group. This is a long standing collaborative exercise involving a commitment by the Governments of ten countries with similar perspectives to improve the quality of anti-doping work.

Two workshops of the Association of National Anti-Doping Organisations were held, one in Tokyo in September 2007 and one in Lausanne in March 2008. I was privileged to take up the position of President at the Tokyo meeting. These workshops enable the sharing of state of the art information and systems, for example, in relation to developing individual blood profiles for athletes.

The Oceania Regional Anti-Doping Organisation (ORADO) is slowly developing its capacity with limited resources. DFSNZ has contributed to this through its contribution at Board level but also through the provision of practical advice and support. In this regard Jayne Kernohan has provided outstanding service including giving up a good deal of her own time and money to visit the ORADO office and draft important policies and rules.

internalI must thank our dedicated staff who provide outstanding service. David Ho and Stephanie Hoek have been mentioned earlier in this report but I would add my sincere appreciation of the many years of quality work those two provided and my best wishes as they enter the next phase of their working careers. We have recruited two new assistants in the Testing Programme as well as contracting, for the short term, some experience in Erika Murphy from the Irish Sports Council. Our gratitude is extended to that organisation for releasing Erika for a six month period.

While little evidence of doping is emerging in New Zealand the costs of compliance with Government and WADA requirements have meant that our current level of staffing and office space are no longer sufficient. DFSNZ will be employing an additional staff member as well as replacing Erika early in the new year and this will necessitate a shift of premises as the current ones have been barely sufficient for some time.

graeme SteelChief ExecutiveDRUG FREE SPORT NEW ZEALAND

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testing:• A total of 1360 (1599) tests were conducted.• 1064 (1221) constituted the DFSNZ programme, 525 (490) in

competition and 696 (772) out of competition.• 16 (50) samples were screened for EPO.• 296 (378) contract tests were completed.• All tests were conducted at no notice to the athlete.• ISO certification was maintained against the International

Standards for Testing and Therapeutic Use Exemptions.• 14 (15) rule violations were confirmed, 0 (3) refusals and

14 (12) positive tests, 6 for anabolic agents and 8 (11) for cannabis.

therapeutic use exemptions:• 61 (64) Standard Therapeutic Use Exemption (TUE)

applications were received. 11 were unnecessary, withdrawn or referred to IF. 47 (61) were approved and 3 declined.

• 42 (40) of the applications included systemic glucocorticosteroids (such as prednisone for severe asthma or allergic reaction).

• 530 (437) Abbreviated TUE’s were received.

education:• 121 (93) formal presentations were provided by DFSNZ.• 7 (14) Outreach events were organised.• Initiation of “pledge” programme through which

sportspeople commit to supporting clean sport – recognised by wearing green wrist bands.

• Launching of text service for checking medications.• Collaboration with Te Papa through “Poisoners” exhibition.• Partnership with Youthtown was established.

international Chair, Prof. David Gerrard attended the following:• WADA* Health Medical and Research Committee, Montreal, 6

- 7 September 2007• WADA* sponsored meeting of Gulf States, Dubai, 18 - 20

October 2007• WADA* World Conference, Madrid, 15 - 17 November 2007.• Meetings of the WADA* Therapeutic Use Committee (which

he chairs) and WADA IF/NADO Symposium, Lausanne, 2 - 4 April 2008

• WADA Executive and Board Meetings, 10 - 11 May 2008.(* WADA funded)

Chief Executive, Graeme Steel attended the following:• ANADO; Annual Meetings / Workshops, Tokyo, 16 - 18

September 2007, Lausanne, 30 March - 1 Apr 2008.• WADA IF/NADO Symposium, Lausanne, 2 April 2008.• IADA; Steering Group Meeting, Madrid, 11 November 2007.• WADA World Conference, Madrid, 15 - 17 November 2007.

Testing Programme General Manager, Jayne Kernohan attended the following:• Oceania Regional Anti-Doping Organisation Board Meeting,

Port Vila, 16 - 18 March 2008.• WADA Travelling Education Seminar, Port Vila, 18 – 19 March

2008.

Education Programme Manager, Andrew Sylvester attended the following:• World University Games Bangkok – WADA* Outreach, 8 - 18

August 2007. (* WADA funded)

Legal Advisor, Paul David attended the following:• WADA Symposium on Investigations in Anti-Doping, Sydney,

1 - 2 May 2008.

Athlete Representative, Sarah Ulmer attended the following:• WADA World Conference, Madrid, 15 - 17 November

2007.(Joint funded with SPARC and NZOC)

governance and administration• The Sports Anti-Doping Bill came into effect on July 1 2007

substantially broadening the role of DFSNZ.• DFSNZ is a signatory to the World Anti-Doping Code.• The Board of DFSNZ currently has a membership of 5. • The Board came together for full meetings 5 times during the

year and additional meetings were conducted by conference call as required.

• The only standing Committee operated by DFSNZ is the Therapeutic Use Committee consisting of Board Chair, Prof David Gerrard, Dr Cathy Ferguson and Dr Tony Edwards.

• As at 30 June the Agency employed 6 full time staff with part time assistance in accounting and general office duties.

• DFSNZ operated from a budget of approx $1.9 million (gst excl), of which 1.6 came directly from vote “Sport”.

• DFSNZ received an unqualified audit report as well as undergoing a review by the Finance and Administration Select Committee, from which no issues of substance were reported.

* (06/07 year numbers in brackets)

programme SummarieS aND HigHligHtS - 2007/2008program

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introduction:Nine performance targets were set for the year and all nine have been met.(Where applicable previous years targets are included in brackets.)

output �.� The scope of Output 1 has been expanded to incorporate the investigative work provided for under the new legislation. The focus of this programme, reflected in the measures set, is increasingly moving towards achieving desired outcomes rather than simply meeting arbitrary quantities of different types of tests. Five targets were set and all were met.

Target: A minimum of 1,000 (1200) drug tests will be administered.Full Year result: Target met. 1064 (1221) tests were conducted within the DFSNZ programme.

The single minimum target of 1000 tests was exceeded with a final total of 1064 tests being completed. 587 (696) tests were conducted out of competition and 477 (525) in competition. A further 296 (378) tests were conducted on a user pays basis.

Target: NSOs and athletes assess that the anti-doping programme is of a high standard, reflecting its capacity to deter and detect doping.Full Year result: Target met (subject to explanation below)

Both athletes and National Sporting Organisations (NSO’s) were surveyed and provided their feedback on the “standard” of the programme. 173 elite level athletes were included in the annual (confidential) survey and 28 responses were received from NSO’s. The measure does not, as written, set out exactly what proportions of responses are acceptable to meet the target so the full range is included in the summary which follows. Athlete feedback indicated very high proportions were satisfied with the programme’s capacity to deter and detect doping with only 2 % dissatisfied. Similarly NSO’s expressed high levels of satisfaction with no dissatisfaction.

Target: ISO certification against relevant international standards is maintained.Full Year result: Target met. ISO certification against the International Standards for Testing, and Therapeutic use exemptions maintained following November Audit.

ISO Certification has been maintained demonstrating that Drug Free Sport NZ has a documented system for ensuring that the International Standards for Testing and Therapeutic Use Exemptions are complied with. This therefore means that the system supports the proper application of the Sports Anti-Doping Rules.

Target: All evidence of anti-doping rule violations received by DFSNZ is investigated and either brought forward as an allegation or dismissed.Full Year result: Target met. All files presented to review committee and appropriate decision made. One set of cases involving 3 athletes has been passed on to the International Federation with jurisdiction.

DFSNZ receives a variety of information during the year which may be indicative of anti-doping rule violations being committed. This information is assessed and investigations are carried out in cases where there is sufficient evidence to warrant it. A summary of progress and conclusions of investigations is provided to the “Review Committee” who determine whether or not the investigation should continue and if not whether or not there is sufficient evidence for an anti-doping rule allegation to be presented to a Tribunal. As the Review Committee is a subset of the Board these decisions are included as part of the Board minutes.

Target: No New Zealand athlete will commit an anti-doping rule violation while associated with a major international sporting event.Full Year result: Target met. No New Zealand athlete has committed an anti-doping rule violation while associated with a major international sporting event during this period.

output �.� All three targets relating to the education and information programme were met.

Target: 90% of randomly surveyed athletes who are in the “registered testing pool” report acceptance, knowledge and understanding of test procedures and the banned drug schedule.Full Year result: Target met – see below.

99% of athletes surveyed accepted responsibilities, 99% (96%) understood procedures and 97% (91%) reported that they understood the banned list.

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StatemeNt oF Service perFormaNce - Period 1/7/2007 to 30/06/2008


Target: 95% of NSOs are satisfied that provision of and access to information on the doping control programme is good or better.Full Year result: Target met.

The level of National Sporting Organisations satisfaction with the provision of and access to information on the doping control programme was high with 100% rating it as good or better (88% very good or excellent).

Target: No organisations or support staff are found to be supporting counter-drug free activity or culture.Full Year result: Target met. No such finding was made during the period.

DFSNZ formally investigated a number of allegations following indications that organisations or support staff may have been supporting counter-drug free activity or culture. No evidence showing such support was able to be placed before the internal Review Committee.

output �.3Target: Year-end review demonstrates that all commitments to WADA, IADA and Oceania RADO have been met in a timely fashion.Half Year result: Target met. All commitments have been met.

A year-end review demonstrated that all commitments to WADA, IADA and Oceania RADO had been met in a timely fashion.These can be summarised as follows:Payment of Government fees to WADA for the 2008 calendar year was made in December 2007, ahead of the time schedule expected by WADA.Participating parties of the International Anti-Doping Arrangement (“IADA” a group of 10 countries which have committed to collaboration on anti-doping matters) met once during the period in Madrid. Drug Free Sport NZ was represented by the Chief Executive. No other commitments were made to IADA during the period.DFSNZ was represented at the Oceania RADO Board meeting by the General Manager and ongoing training of DCO’s and support to the WADA office was provided.

SummarYHere is a summary of the work of DFSNZ against its performance targets for the year. The number of “targets” relates to the numbers shown in the expanded summary below.

Half Year Progress Full Year Position

Performance measures on target 5 9

Performance measures not on target 0 0

Performances not measured in period 4 0

Total 9 9

Output Purchase Price per MoU Actual Costs per Statement of Financial Performance

1 – Testing $1,317,000 $1,310,367

2 – Information and Education $245,000 $246,786

3 – International Commitments $160,000 $168,772

StatemeNt oF Service perFormaNce - Period 1/7/2007 to 30/06/2008statem

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Out of Competition

In Competition

ContractTests Total Govt. Funded

Total

Anti-Doping Rule Violations

% ADRV

1994/95 325 255 64 644 580 8 1.24

1995/96 340 280 46 666 620 8 1.2

1996/97 339 283 38 660 622 11 1.67

1997/98 586 400 8 994 986 16 1.61

1998/99 556 377 18 951 933 6 0.63

1999/2000 585 443 152 1180 1028 9 0.76

2000/01 762 500 99 1361 1265 14 1.03

2001/02 706 447 328 1481 1153 13 0.88

2002/03 682 445 286 1413 1127 12 0.85

2003/04 713 443 361 1517 1156 9 0.59

2004/05 707 511 301 1519 1218 18 1.18

2005/06 772 490 340 1602 1262 15 0.93

2006/07 696 525 378 1599 1221 15 0.93

2007/08 587 477 296 1360 1064 17* 1.13

Totals 8356 5876 2715 16947 14235 171 1.17

* Incorporates 3 non analytical cases still to be ruled upon by IF Tribunal

1600

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1200

1000

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400

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94/95 03/04 04/05 05/06 06/07 07/0802/0301/0200/0199/0098/9997/9896/9795/960

Out of Competition Contract Tests TotalIn Competition

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SPORT DESCRIPTION InCompetition

Out ofCompetition

DFSNZProg Tests

ContractTests

TotalTests

Failure toSubmit

ADRV

AEROBICS 3 0 3 0 3ARCHERY 5 0 5 0 5ATHLETICS 33 44 77 0 77BADMINTON 0 10 10 22 32BASKETBALL 24 53 77 2 79 3BODY BUILDING 0 0 0 0 0BOWLS 5 0 5 6 11BOXING 10 10 20 0 20CANOEING 6 18 24 0 24CRICKET 0 0 0 0 0CYCLING 52 44 96 0 96EQUESTRIAN 0 1 1 0 1FOOTBALL 20 50 70 4 74GYMNASTICS 2 1 3 0 3HOCKEY 34 69 103 8 111ICE SPEED SKATING 4 3 7 0 7JUDO 14 1 15 0 15KARATE 0 2 2 0 2KARTING 0 0 0 0 0KORFBALL 0 0 0 5 5MOTORCYCLING 4 0 4 9 13MOTORSPORTS 7 0 7 0 7 1NETBALL 10 12 22 11 33PARALYMPIC CYCLING 0 2 2 0 2PARALYMPIC POWERLIFTING 0 1 1 0 1PARALYMPIC SHOOTING 0 1 1 0 1PARALYMPIC SWIMMING 0 3 3 0 3PARALYMPIC TRACK & FIELD 0 4 4 0 4POWER LIFTING 21 0 21 5 26 *7ROLLER SPORTS 0 1 1 0 1ROWING 23 55 78 0 78RUGBY LEAGUE 12 8 20 28 48 2RUGBY UNION 54 96 150 150 300SHEARING 6 0 6 0 6SOFTBALL 0 5 5 0 5SQUASH 7 2 9 0 9SURF LIFE SAVING 6 0 6 0 6SWIMMING 41 34 75 0 75SYNCHRO SWIMMING 0 2 2 0 2TAE KWON DO 0 1 1 0 1TENNIS 4 0 4 0 4TOUCH 12 4 16 0 16 1TRIATHLON 16 24 40 16 56U’WATER HOCKEY 0 0 0 0 0VOLLEYBALL 4 4 8 0 8WEIGHTLIFTING 23 10 33 15 48WHEELCHAIR RUGBY 10 2 12 0 12WRESTLING 0 0 0 0 0YACHTING 5 10 15 15 30TOTALS 477 587 1064 296 1360 0 14

SummarY oF teStiNg programme – 2007/2008sum

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6 x Adverse Analytical Findings on International competitors competing at an international Event held in New Zealand, plus 1 x Adverse Analytical Finding on NZ Powerlifter

�0 Drug Free Sport New Zealand - Annual Report 2007/2008 Drug Free Sport New Zealand - Annual Report 2007/2008 ��

Sample Date Registry Athlete Sport Infraction Penalty

11-Aug-07 Positive MOREHU, JASON RUGBY LEAGUE Cannabinoids Ineligibility from 26 October 2007 until 31March 2008

19-Aug-07 Positive FLINT, JOE RUGBY LEAGUE Cannabinoids Ineligibility from 20 November 2007 to 28 March 2008

8-Dec-07 Positive MASILAMANI, KRISHNAN (Ind) POWERLIFTING Nandrolone 2-year period of ineligibility.

8-Dec-07 Positive SHANMUGAVADIVEL, NAGESWARAN (Ind)

POWERLIFTING Nandrolone; Methandienone; Elevated T:E Ratio

2-year period of ineligibility.

8-Dec-07 Positive BEATON, ROBERT (Sco) POWERLIFTING Cannabinoids 6-month period of ineligibility and 500 Euro fine.

8-Dec-07 Positive BITER, EDDIE (Saf) POWERLIFTING Stanozolol 2-year period of ineligibility.

9-Dec-07 Positive ASHE, GRANT (Saf) POWERLIFTING Elevated T:E Ratio 2-year period of ineligibility.

9-Dec-07 Positive SINGH, INDERPREET (Ind) POWERLIFTING Nandrolone; Stanozolol; Elevated T:E Ratio

2-year period of ineligibility.

17-Feb-08 Positive LAMBERT, DALE MOTORSPORT Cannabinoids Ineligibility from 10 April 2008 until 1May 2010

4-Mar-08 Positive HUNIA, TED TOUCH Cannabinoids Ineligibility from 21 May 2008 to 2 July 2008

28-Mar-08 Positive CONNELL, NAT BASKETBALL Cannabinoids Ineligibility from 24 April 2008 to 1 June 2008

28-Mar-08 Positive ROBINSON, STEVEN BASKETBALL Cannabinoids Ineligibility from 24 April 2008 to 1 June 2008

21-May-08 Positive LAMBERT, STACEY BASKETBALL Cannabinoids 2-month period of ineligibility

21-Jun-08 Positive NEWMAN, RODNEY POWERLIFTING Boldenone; Elevated T:E Ratio

2-year period of ineligibility from 22 July 2008

SummarY oF aNti-DopiNg rule violatioNS – 2007/2008su

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teStiNg programme 1998 2000 2002 2004 2005 2006 2007 2008

Number of times tested in last 3 years by DFSNZ

None 31 48 31 34 42 36 26 12

One 31 22 24 18 21 25 23 18

Two 10 10 16 19 9 14 18 21

Three + 28 20 29 27 29 24 32 49

Number of times tested in last 3 years by other organisations

None 77 86 76 77 75 70 61 50

One 10 6 14 8 14 13 13 18

Two 5 3 5 5 4 7 10 9

Three + 8 5 5 10 7 10 15 15

Likelihood of being tested “In Competition” next 12 months

Very likely / likely 56 51 63 56 62 59 67 79

Unlikely / very unlikely 31 43 27 34 24 31 25 13

Neither / Don’t know 13 6 10 10 14 11 9 9

Mean score - 1=very likely, 5=very unlikely 2.7 3.1 2.4 2.7 2.4 2.6 2.3 1.9

Likelihood of being tested “Out of Competition” next 12 months

Very likely / likely 40 32 42 39 44 39 51 55

Unlikely / very unlikely 42 54 46 46 42 45 38 35


Mean score - 1=very likely, 5=very unlikely 3.1 2.6 3 3.1 2.9 3.1 2.8 2.5

Frequency of tests is sufficient

Very satisfied / satisfied 72 54 72 69 64 68 71 78

Dissatisfied / very dissatisfied 11 16 15 13 10 8 11 4


Mean score - 1=very satisfied, 5=very dissatisfied 2.2 2.5 2.2 2.2 2.2 2.2 2.2 1.9

Testing procedures used





Attitude of Agency Officials





Programme is a deterrent




Mean score - 1=very satisfied, 5=very dissatisfied 2.2 2.1 2 2 2 2.0 1.9 1.7

atHlete SurveY �008 – Results Summaryathlete survey �008

�� Drug Free Sport New Zealand - Annual Report 2007/2008 Drug Free Sport New Zealand - Annual Report 2007/2008 �3

iNFormatioN 1998 2000 2002 2004 2005 2006 2007 2008

Quality of information




Mean score - 1=very satisfied, 5=very dissatisfied 1.9 2 1.8 1.8 1.9 1.8 1.7 1.6

Availability of information





geNeral 1998 2000 2002 2004 2005 2006 2007 2008

Performance Enhancing Drugs are being used in your own sport in NZ

Strongly Agree / Agree 19 19 21 18 12 13 10 9

Disagree / Strongly disagree 67 56 53 61 63 66 69 71


Mean score - 1=strongly agree, 5=strongly disagree 3.7 3.6 3.5 3.7 3.5 3.8 4.0 4.1

Performance Enhancing Drugs are being used in your own sport overseas





Enough effort put into controlling use of Performance Enhancing Drugs in NZ





Drug Free Sport New ZealaND – Directory as at 30/6/2008

memBerS oF tHe Drug Free Sport New ZealaND BoarDProf. David Gerrard (Chair) Michael Heron Melodie Robinson Dr. Lesley Rumball Mr. Stewart Walsh

cHieF executive geNeral maNager programme maNagerGraeme Steel Jayne Kernohan Andrew Sylvester - Education

BaNKerS auDitorS SolicitorBank of New Zealand Audit New Zealand Paul David on behalf of the Auditor-General

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atHlete SurveY �008 – Results Summary

Based on results obtained by Pheonix Research from confidential interviews with 173 athletes (June 2008) - Note: rounding of figures has been applied.


We acknowledge responsibility for the preparation of these financial statements and for the judgment used herein.

We acknowledge responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the Board’s financial reporting.

In our opinion these financial statements fairly reflect the financial position and operations of the Agency for the year ended 30 June 2008.

Assoc. Prof. David Gerrard Melodie RobinsonBoard Chairperson Board Member

Date: 31 October 2008 Date: 31 October 2008

Drug Free Sport New ZealaND FiNaNcial StatemeNtS Statement of Responsibility statem

ent of responsibility


Notes 2008 BUDGET 2007

REVENUE

Crown 2 1691000 1691000 1623000

Interest 19733 25000 30356

Contract Testing Services 183876 200000 225555

Exchange Gain / Loss 3 (301) 0 (6539)

Other Income 29736 0 27544

TOTAL REVENUE 1924044 1916000 1899916

EXPENSES

Testing/Investigation Programme 1310367 1317000 1281889

Education and Research 246786 245000 287120

International 168128 160000 153200

Contract Testing Services 168772 194000 211090

TOTAL EXPENSES 1894053 1916000 1933299

NET SURPLUS/(DEFICIT)

FOR THE YEAR 12 29991 0 (33383)

2008 Budget 2007

Equity at the Start of the Year 317287 379169 350669

Net Surplus / (Deficit) for the Year 29991 0 (33383)

Total Recognised Revenues and Expenses 29991 0 (33383)

Equity at the End of the Year 347278 379169 317287

Drug Free Sport New ZealaNDStatemeNt oF FiNaNcial perFormaNce – For Year Ended 30/6/2008

Drug Free Sport New ZealaND StatemeNt oF cHaNgeS iN eQuitY – For Year Ended 30/6/2008

The accompanying accounting policies and notes form an integral part of these financial statements.

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Notes

Cash flows from operating activities

2008 2007

Receipts from Crown revenues 1691000 1691911

Interest Received 19733 30356

Receipts from other revenue 222752 225555

Payments to suppliers (1657092) (1402535)

Payments to employees (395469) (347072)

Goods and services tax (net) (17846) 15245

Net cash from operating activities: 13 (136921) 213460

Cash flows from investing activities

Purchase of property, plant and equipment (3080) (41576)

Purchase of intangibles (27098) (194824)

Net cash from investing activities: (30178) (236400)

Cash flows from financing activities 0 0

Net cash from financing activities: 0 0

Net (decrease)/increase in cash and cash equivalents (167099) (22940)

Cash and cash equivalents at the beginning of the year 376065 399004

Cash and cash equivalents at the end of the year 208965 376065

Drug Free Sport New ZealaND StatemeNt oF caSH FlowS – For Year Ended 30/6/2008


financial statem

ents


Notes 2008 BUDGET 2007

EQUITY 12 347278 379169 317287

Represented by

CURRENT ASSETS

Cash on Hand and at Bank 6 208965 243169 376065

Debtors and other Receivables 24818 60000 42081

Pre-Paid Expenses 41490 25000 35102

G.S.T. Receivable 5397 0 12968

280670 328169 466216

Less CURRENT LIABILITIES

Creditors and other Payables 10 123693 89000 363328

Employee entitlements 11 5143 24773

NON CURRENT LIABILITIES

Creditors and other Payables 10 0 13275

128836 89000 401376

NET WORKING CAPITAL 151834 239169 64841

NON CURRENT ASSETS

Property, Plant and Equipment 8 58931 140000 84752

Intangibles 9 136513 167694

195444 140000 252446

NET ASSETS 347278 379169 317287

Assoc. Prof. David Gerrard Melodie RobinsonBoard Chairperson Board Member

Date: 31 October 2008 Date: 31 October 2008

Drug Free Sport New ZealaND StatemeNt oF FiNaNcial poSitioN – As at 30/6/2008


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�. Statement of accounting policies for the year ended 30 June �008

reporting entityDrug Free Sport NZ (“DFSNZ”) is a Crown entity as defined by the Crown Entities Act 2004 and is domiciled in New Zealand. As such, DFSNZ’s ultimate parent is the New Zealand Crown.

DFSNZ’s primary objective is to encourage and promote drug free sport in New Zealand, as opposed to that of making a financial return.

Accordingly, DFSNZ has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (“NZ IFRS”).

The financial statements for DFSNZ are for the year ended 30 June 2008, and were approved by the Board on 31 October 2008.

Basis of preparationStatement of ComplianceThe financial statements of DFSNZ have been prepared in accordance with the requirements of the CrownEntities Act 2004, which includes the requirement to comply with New Zealand generally accepted accounting practice (“NZ GAAP”).

The financial statements comply with NZ IFRSs, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.

First year of preparation under NZ IFRSThis is the first set of financial statements prepared using NZ IFRS, and comparatives for the year ended 30 June 2007 have been restated to NZ IFRS accordingly.

The accounting policies set out below have been applied consistently to all periods presented in these financial statements and in preparing an opening NZ IFRS statement of financial position as at 1 July 2006 for the purposes of the transition to NZ IFRS.

Measurement baseThe financial statements have been prepared on an historical cost basis. Functional and presentation currencyThe financial statements are presented in New Zealand dollars and all values are rounded to the nearest dollar. The functional currency of DFSNZ is New Zealand dollars.

Standards, amendments and interpretations issued that are not yet effective and have not been early adoptedStandards, amendments and interpretations issued but not yet effective that have not been early adopted,and which are relevant to DFSNZ include:• NZ IAS 1 Presentation of Financial Statements (revised 2007) replaces NZ IAS 1 Presentation of Financial Statements (issued 2004)

and is effective for reporting periods beginning on or after 1 January 2009. The revised standard requires information in financial statements to be aggregated on the basis of shared characteristics and introduces a statement of comprehensive income. The statement of comprehensive income will enable readers to analyse changes in equity resulting from non-owner changes separately from transactions with the Crown in its capacity as “owner”. The revised standard gives DFSNZ the option of presenting items of income and expense and components of other comprehensive income either in a single statement of comprehensive income with subtotals, or in two separate statements (a separate income statement followed by a statement of comprehensive income). DFSNZ intends to adopt this standard for the year ending 30 June 2010, and is yet to decide whether it will prepare a single statement of comprehensive income or a separate income statement followed by a statement of comprehensive income.

Significant accounting policies

revenueRevenue is measured at the fair value of consideration received or receivable.

Revenue from the CrownDFSNZ is primarily funded through revenue received from the Crown, which is restricted in its use for the purpose of DFSNZ meeting its objectives as specified in the Statement of Intent. Revenue from the Crown is recognised as revenue when earned and is reported in the financial period to which it relates.

InterestInterest income is recognised using the effective interest method. Interest income on an impaired financial asset is recognised using the original effective interest rate.

Drug Free Sport New ZealaND NoteS to tHe FiNaNcial StatemeNtS – For Year Ended 30/6/2008 notes to the fi

nancial statements


Provision of servicesRevenue derived through the provision of services to third parties is recognised in proportion to the stage of completion at the balance sheet date. The stage of completion is assessed by reference to surveys of work performed.

Borrowing costsBorrowing costs are recognised as an expense in the period in which they are incurred.

grant expenditureDiscretionary grants are those grants where DFSNZ has no obligation to award on receipt of the grant application and are recognised as expenditure when approved by the grants approval committee and the approval has been communicated to the applicant.

leasesOperating leasesLeases that do not transfer substantially all the risks and rewards incidental to ownership of an asset to DFSNZ are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straight-line basis over the term of the lease in the statement of financial performance. Lease incentives received are recognised in the statement of financial performance over the lease term as an integral part of the total lease expense.

cash and cash equivalentsCash and cash equivalents include cash on hand, deposits held at call with banks both domestic and international, other short-term, highly liquid investments, with original maturities of three months or less and bank overdrafts.

Debtors and other receivablesDebtors and other receivables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method, less any provision for impairment. Impairment of a receivable is established when there is objective evidence that DFSNZ will not be able to collect amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy, and default in payments are considered indicators that the debtor is impaired. The amount of the impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted using the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of financial performance. When the receivable is uncollectible, it is written off against the allowance account for receivables. Overdue receivables that have been renegotiated are reclassified as current (i.e. not past due).

investmentsAt each balance sheet date DFSNZ assesses whether there is any objective evidence that an investment is impaired.

Bank depositsInvestments in bank deposits are initially measured at fair value plus transaction costs. After initial recognition investments in bank deposits are measured at amortised cost using the effective interest method. For bank deposits, impairment is established when there is objective evidence that DFSNZ will not be able to collect amounts due according to the original terms of the deposit. Significant financial difficulties of the bank, probability that the bank will enter into bankruptcy, and default in payments are considered indicators that the deposit is impaired.

property, plant and equipmentProperty, plant and equipment asset classes consist of furniture and electronic equipment. Property, plant and equipment are shown at cost or valuation, less any accumulated depreciation and impairment losses.

AdditionsThe cost of an item of property, plant and equipment is recognised as an asset only when it is probable that future economic benefits or service potential associated with the item will flow to DFSNZ and the cost of the item can be measured reliably. Where an asset is acquired at no cost, or for a nominal cost, it is recognised at fair value when control over the asset is obtained.

DisposalsGains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposals are included in the statement of financial performance. When revalued assets are sold, the amounts included in revaluation reserves in respect of those assets are transferred to general funds.

Subsequent costsCosts incurred subsequent to initial acquisition are capitalised only when it is probable that future economic benefits or service potential associated with the item will flow to DFSNZ and the cost of the item can be measured reliably.The costs of day-to-day servicing of property, plant and equipment are recognised in the statement of financial performance as they are incurred.

Drug Free Sport New ZealaND NoteS to tHe FiNaNcial StatemeNtS – For Year Ended 30/6/2008

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DepreciationDepreciation is provided on a straight-line basis on all property, plant and equipment, at rates that will write off the cost (or valuation) of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows:Furniture 10 years (10%)Electronic Equipment 3.3 years (30%)

intangible assetsSoftware acquisition and developmentAcquired computer software licenses are capitalised on the basis of the costs incurred to acquire and bring to use the specific software. Costs that are directly associated with the development of software for internal use by DFSNZ, are recognised as an intangible asset. Direct costs include the software development, employee costs and an appropriate portion of relevant overheads. Staff training costs are recognised as an expense when incurred. Costs associated with maintaining computer software are recognised as an expense when incurred. Costs associated with the development and maintenance of DFSNZ’s website are recognised as an expense when incurred.

AmortisationThe carrying value of an intangible asset with a finite life is amortised on a straight-line basis over its useful life. Amortisation begins when the asset is available for use and ceases at the date that the asset is derecognised. The amortisation charge for each period is recognised in statement of financial performance. The useful lives and associated amortisation rates of intangible assets have been estimated as 3.3 years (30%):

impairment of non-financial assetsProperty, plant and equipment and intangible assets that have a finite useful life are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.Value in use is depreciated replacement cost for an asset where the future economic benefits or service potential of the asset are not primarily dependent on the asset’s ability to generate net cash inflows and where DFSNZ would, if deprived of the asset, replace its remaining future economic benefits or service potential.If an asset’s carrying amount exceeds its recoverable amount, the asset is impaired and the carrying amount is written down to the recoverable amount. For revalued assets the impairment loss is recognised against the revaluation reserve for that class of asset. Where that results in a debit balance in the revaluation reserve, the balance is recognised in the statement of financial performance. For assets not carried at a revalued amount, the total impairment loss is recognised in the statement of financial performance.The reversal of an impairment loss on a revalued asset is credited to the revaluation reserve. However, to the extent that an impairment loss for that class of asset was previously recognised in the statement of financial performance, a reversal of the impairment loss is also recognised in the statement of financial performance.For assets not carried at a revalued amount the reversal of an impairment loss is recognised in the statement of financial performance.

creditors and other payablesCreditors and other payables are initially measured at fair value and subsequently measured at amortised cost using the effective interest method.

employee entitlementsShort-term employee entitlementsEmployee entitlements that DFSNZ expects to be settled within 12 months of balance date are measured at undiscounted nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned, but not yet taken at balance date, retiring and long service leave entitlements expected to be settled within 12 months, and sick leave.DFSNZ recognises a liability for sick leave to the extent that compensated absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date; to the extent DFSNZ anticipates it will be used by staff to cover those future absences. DFSNZ recognises a liability and an expense for bonuses where it is contractually obliged to pay them, or where there is a past practice that has created a constructive obligation.

provisionsDFSNZ recognises a provision for future expenditure of uncertain amount or timing when there is a present obligation (either legal or constructive) as a result of a past event, it is probable that expenditures will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognized as a finance cost.


nancial statements


good and Service tax (gSt)All items in the financial statements are presented exclusive of GST, except for receivables and payables, which are presented on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognized as part of the related asset or expense.The net amount of GST recoverable from, or payable to, the Inland Revenue Department (IRD) is included as part of receivables or payables in the statement of financial position.The net GST paid to, or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.Commitments and contingencies are disclosed exclusive of GST.

income taxDFSNZ is a public authority and consequently is exempt from the payment of income tax. Accordingly, no charge for income tax has been provided for.

Budget figuresThe budget figures are derived from the statement of intent as approved by the Board at the beginning of the financial year. The budget figures have been prepared in accordance with NZ IFRS, using accounting policies that are consistent with those adopted by DFSNZ for the preparation of the financial statements.

cost allocationDFSNZ has determined the cost of outputs using the cost allocation system outlined below.Direct costs are those costs directly attributed to an output. Indirect costs are those costs that cannot be identified in an economically feasible manner, with a specific output.Direct costs are charged directly to outputs. Indirect costs are charged to outputs based on cost drivers and related activity/usage information. There has been a change to the cost allocation methodology since the date of the last audited financial statements which is reflected in the notes to the accounts.

critical accounting estimates and assumptionsIn preparing these financial statements DFSNZ has made estimates and assumptions concerning the future.These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:

Property, plant and equipment useful lives and residual valueAt each balance date DFSNZ reviews the useful lives and residual values of its property, plant and equipment. Assessing the appropriateness of useful life and residual value estimates of property, plant and equipment requires DFSNZ to consider a number of factors such as the physical condition of the asset, expected period of use of the asset by DFSNZ, and expected disposal proceeds from the future sale of the asset. An incorrect estimate of the useful life or residual value will impact the depreciation expense recognised in the statement of financial performance, and carrying amount of the asset in the statement of financial position.DFSNZ minimises the risk of this estimation uncertainty by: - physical inspection of assets; - asset replacement programmes; - review of second hand market prices for similar assets; and - analysis of prior asset sales.

DFSNZ has not made significant changes to past assumptions concerning useful lives and residual values.The carrying amounts of property, plant and equipment are disclosed in note 8.

critical judgements in applying DFSNZ’s accounting policiesManagement has exercised the following critical judgements in applying DFSNZ’s accounting policies for the period ended 30 June 2008:


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�. revenue from crownDrug Free Sport NZ has been provided with funding from the Crown for the specific purposes set out in its founding legislation and as agreed in the Memorandum of Understanding with the Minister. Apart from these general restrictions, there are no unfulfilled conditions or contingencies attached to government funding (2007 nil).

3. gains

Actual 2008 Actual 2007

Net foreign exchange gain (loss) (301) (6539)

4. personnel costs


Salaries and wages 383930 334443

Employer contributions to defined contribution plans 11540 8970

Increase/(decrease) in employee entitlements (note 11) (19630) 3659

Total personnel costs 375840 347072

�. expenses


Audit fees for financial statement audit 10150 9200

Audit fees for NZ IFRS transition 3000 0

Board fees and expenses 25583 24280

Depreciation and amortisation 87180 35068

Doping Control Official fees 141527 150810

Laboratory Fees 445776 530221

Operating lease expense 42232 32919

Other Expenses 1138605 1150801

Total expenses 1894053 1933299

�. cash and cash equivalents


Cash on hand and at bank 208965 376065

7. Debtors and other receivables


Debtors and other receivables 24818 42081

Less : provision for impairment 0 0

Total debtors and other receivables 24818 42801


nancial statements


8. property, plant and equipment

Furniture Electronic Equipment Total

Cost or valuation

Balance at 1 July 2006 19915 117917 137832

Additions 16648 42003 58651

Balance at 30 June 2007 36563 159920 196483

Balance at 1 July 2007 36563 159920 196483

Additions 1200 1878 3078

Disposals 1569 52914 54483

Balance at 30 June 2008 36194 108884 145078

Accumulated depreciation and impairment losses

Balance at 1 July 2006 5493 71170 76663

Depreciation expense 2685 32383 35068

Balance at 30 June 2007 8178 103553 111731

Balance at 1 July 2007 8178 103553 111731

Depreciation expense 3536 25364 28900

Eliminate on disposal (1569) (52914) (54483)

Balance at 30 June 2008 10145 76003 86148

Carrying amounts

At 1 July 2006 14422 46747 61169

At 30 June and 1 July 2007 28385 56367 84752

At 30 June 2008 26049 32881 58930

�. intangible assets

Acquired Software

Cost

Balance at 1 July 2006

Additions 177750

Disposals 0

Balance at 30 June 2007 177750

Balance at 1 July 2007 177750

Additions 27098

Disposals 0


Accumulated amortisation and impairment losses


Amortisation expense 10056



Amortisation expense 58279


Carrying amounts

At 1 July 2006 0

At 30 June and 1 July 2007 167694

At 30 June 2008 136513


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�0. creditors and other payables


Creditors – current and non current 119693 372803

Accrued expenses 4000 3800

Total creditors and other payables 123693 376603

��. employee entitlements


Current employee entitlements are represented by:

Annual leave 5143 24773

Total employee entitlements 5143 24773

��. equity


General funds


Surplus/(deficit) 29991 (33383)


�3. reconciliation of net surplus/(deficit) to net cash from operating activities


Net surplus/(deficit) after tax 29991 (33383)

Add/(less) non-cash items:

Depreciation and amortisation expense 87180 35068

Total non-cash items 87180 35068

Add/(less) items classified as investing or financing activities:

(Gains)/losses on disposal of property, plant and equipment

Total items classified as investing or financing activities

Add/(less) movements in working capital items:


Pre-paid Expenses 592 40450

Creditors and other payables (252910) 154364

GST Receivable 7572 (7662)

Employee entitlements (19629)

Net movements in working capital items (254092) 211776

Net cash from operating activities (136921) (213461)


nancial statements


�4. capital commitments and operating leases


Not later than one year 28802 37310

Later than one year and not later than five years 4596 106652

Later than five years 0 15390

Total non-cancellable operating leases 33398 159352

��. contingent liabilitiesThe Agency, at balance date, has no contingent liabilities (2007: nil).

��. related party informationThere were no related party transactions. (2007: nil)

�7. Board member remunerationThe total value of remuneration paid or payable to each Board member during the year was:


Associate Professor David Gerrard (Chair)* 14560 14200

Dr. Cathy Ferguson 0 3800

Michael Heron 3900 3800

Melodie Robinson 3900 3800

Dr. Lesley Rumball 1950 0

Stewart Walsh 1950 0

Total Board member remuneration 26260 25600

* Prof. Gerrard received $10,300 (2007:$10,000) in fees covering his roles as Chair of the Board, and Chair of the Therapeutic Use Committee and $4,260 (2007:$4,200) in fees associated with his roles with the World Anti-Doping Agency

�8. employee remunerationThe Chief Executive’s remuneration was less than $120,000. (2007: less than $120,000)

��. events after the balance sheet dateThere were no significant events after the balance sheet date.

�0. categories of financial assets and liabilitiesThe carrying amounts of financial assets and liabilities in each of the NZ IAS 39 categories are as follows:


Loans and receivables

Cash and cash equivalents 208965 376065


Prepaid expenses 41490 35102

Total loans and receivables 275273 453248

Financial liabilities measured at amortised cost

Creditors and other payables 128836 401376

Total financial liabilities measured at amortised cost 128836 401376


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�� Financial instrument risksDFSNZ’s activities expose it to a variety of financial instrument risks, including market risk, credit risk and liquidity risk. DFSNZ has a series of policies to manage the risks associated with financial instruments and seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative in nature to be entered into.

market riskFair value interest rate riskDFSNZ’s exposure to fair value interest rate risk is limited to its bank deposits which are held at fixed rates of interest.

Cash flow interest rate riskCash flow interest rate risk is the risk that the cash flows from term deposits held at the BNZ will fluctuate because of changes in market interest rates.

Currency riskDFSNZ purchases goods and services overseas which require it to enter into transactions denominated in foreign currencies.

credit riskCredit risk is the risk that a third party will default on its obligation to DFSNZ, causing DFSNZ to incur a loss.Due to the timing of its cash inflows and outflows, DFSNZ invests surplus cash in term deposits with the BNZ.DFSNZ has processes in place to review the credit quality of customers prior to the granting of credit.DFSNZ has no significant concentrations of credit risk, as it has a small number of credit customers and only invests funds with the BNZ.

liquidity riskLiquidity risk is the risk that DFSNZ will encounter difficulty in ensuring that it has sufficient liquid funds to meet commitments as they fall due. In meeting its liquidity requirements, DFSNZ maintains a target level of investments that must mature within specified timeframes.

��. explanation of transition to NZ iFrSDFSNZ’s financial statements for the year ended 30 June 2008 are the first financial statements that comply with NZ IFRS. DFSNZ applied NZ IFRS 1 in preparing these financial statements. The DFSNZ transition date is 1 July 2006 and the opening balance sheet has been prepared at that date. DFSNZ’s NZ IFRS adoption date is 1 July 2007.

There are no differences between the statement of financial performance, statement of financial position and statement of cash flows presented under NZ IFRS, other than changes in classification and terminology used for particular line items in the financial statements.

�3. explanation of significant variances against budgetExplanations for significant variations from DFSNZ’s budgeted figures in the Statement of Intent are as follows:

Statement of financial performanceContract testing revenue and expenditure are both less than the budgeted figure due to lower demand for testing from previous years.

Statement of financial positionBudget figures based on year end estimates made 3 months prior to year end for Statement of Intent purposes. Pre-paid expenses and accounts receivable not correctly provided for in budget.

Statement of changes in equityReduced level of Equity compared to budget primarily due to budget figure being prepared prior to year end and reflecting higher Equity figure for 2007 than actual figures.


nancial statements


to the readers of Drug Free Sport New Zealand’s Financial Statements and Statement of Service performance For the Year ended 30 June �008

The Auditor-General is the auditor of Drug Free Sport New Zealand (“Drug Free Sport”). The Auditor General has appointed me, John Scott, using the staff and resources of Audit New Zealand, to carry out the audit on his behalf. The audit covers the financial statements and statement of service performance included in the annual report of Drug Free Sport for the year ended 30 June 2008.

unqualified opinion

In our opinion:• The financial statements of Drug Free Sport on pages 14 to 25: • comply with generally accepted accounting practice in New Zealand; and • fairly reflect: • Drug Free Sport’s financial position as at 30 June 2008; and • the results of its operations and cash flows for the year ended on that date.

• The statement of service performance of Drug Free Sport on pages 6 to 7: • complies with generally accepted accounting practice in New Zealand; and • fairly reflects for each class of outputs: • its standards of delivery performance achieved, as compared with the forecast standards outlined in the statement of forecast

service performance adopted at the start of the financial year; and • its actual revenue earned and output expenses incurred, as compared with the forecast revenues and output expenses

outlined in the statement of forecast service performance adopted at the start of the financial year.

The audit was completed on 31 October 2008, and is the date at which our opinion is expressed.

The basis of our opinion is explained below. In addition, we outline the responsibilities of the Board and the Auditor, and explain our independence.

Basis of opinion

We carried out the audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the New Zealand Auditing Standards.

We planned and performed the audit to obtain all the information and explanations we considered necessary in order to obtain reasonable assurance that the financial statements and statement of service performance did not have material misstatements, whether caused by fraud or error.

Material misstatements are differences or omissions of amounts and disclosures that would affect a reader’s overall understanding of the financial statements and statement of service performance. If we had found material misstatements that were not corrected, we would have referred to them in our opinion.

The audit involved performing procedures to test the information presented in the financial statements and statement of service performance. We assessed the results of those procedures in forming our opinion.

Audit procedures generally include:• determining whether significant financial and management controls are working and can be relied on to produce complete and

accurate data;• verifying samples of transactions and account balances;• performing analyses to identify anomalies in the reported data;• reviewing significant estimates and judgements made by the Board;• confirming year-end balances;• determining whether accounting policies are appropriate and consistently applied; and• determining whether all financial statement and statement of service performance disclosures are adequate.

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We did not examine every transaction, nor do we guarantee complete accuracy of the financial statements and statement of service performance.

We evaluated the overall adequacy of the presentation of information in the financial statements and statement of service performance. We obtained all the information and explanations we required to support our opinion above.

responsibilities of the Board and the auditor

The Board is responsible for preparing the financial statements and statement of service performance in accordance with generally accepted accounting practice in New Zealand. The financial statements must fairly reflect the financial position of Drug Free Sport as at 30 June 2008 and the results of its operations and cash flows for the year ended on that date. The statement of service performance must fairly reflect, for each class of outputs, Drug Free Sport’s standards of delivery performance achieved and revenue earned and expenses incurred, as compared with the forecast standards, revenue and expenses adopted at the start of the financial year. The Board’s responsibilities arise from the Crown Entities Act 2004, the New Zealand Sports Drug Agency Act 1994 and the Sports Anti-Doping Act 2006.

We are responsible for expressing an independent opinion on the financial statements and statement of service performance and reporting that opinion to you. This responsibility arises from section 15 of the Public Audit Act 2001 and the Crown Entities Act 2004.

independence

When carrying out the audit we followed the independence requirements of the Auditor General, which incorporate the independence requirements of the Institute of Chartered Accountants of New Zealand.

Other than the audit, we have no relationship with or interests in Drug Free Sport.

John ScottAudit New ZealandOn behalf of the Auditor-GeneralAuckland, New Zealand

Drug Free Sport New ZealaND – Audit Reportaudit report

www.unitedbythepledge.co.nz

2007/08 annual report

Documents

new address

financial performance

financial position

financial statements

contact numbers

programme summaries

history of testing programme

cover photo