Annual Report 2011 - Watercare

Watercare Services Limited
2011 ANNUAL REPORT
Notes to the financial statements (continued)
for the year ended 30 June 2011
3. Operating Expenses
group and Company Company
2011 2010
Notes $000 $000
Operating expenses include:
Auditors’ remuneration - annual audit fees 470 180
- audit fee relating to integration of retail business 140 -
- other assurance services provided 208 108
Directors’ fees Note 26, page 105 560 310
Environmentally significant costs - chemicals 9,329 9,813
- energy 13,544 9,442
Cost of consumables and spare parts consumed 3,184 8,928
Increase in provision for obsolescence of inventory 251 29
Operating leases and rent 3,010 2,628
Increase in provision for doubtful debts 1,313 -
Bad debts written off 30 2
Salaries and wages - paid to employees 46,480 33,166
- capitalised on construction of property, plant and equipment (20,598) (19,429)
- expensed in determining surplus or deficit for the year 25,882 13,737
Auditors’ remuneration for other assurance services included the review of financial and information systems. Prior year other assurance services
included the review of the activities associated with the integration of Auckland water retailers and company financial and information systems.
4. Depreciation and Amortisation
group and Company Company
2011 2010
$000 $000
Buildings 2,720 2,296
Pipelines 85,941 24,265
Tanks, tunnels, roads and reservoirs 12,984 10,740
Dams 1,910 1,749
Machinery 31,740 24,415
Motor vehicles 334 491
Office equipment 1,447 1,288
Network models 1,109 614
Computer software 4,693 2,383
Resource consents 748 514
Total depreciation and amortisation 143,626 68,755
5. Finance Costs
group and Company Company
2011 2010
$000 $000
Interest on bank overdraft and borrowings, paid and payable 65,821 37,348
2011 Financial Report
Capitalised interest on construction of property, plant and equipment (2011: 6.79%, 2010: 7.09%) (4,714) (5,835)
Net finance costs 61,107 31,513
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