Notice Type
General Notices
Bay of Plenty Community Trust Incorporated Trustee Banks Restructuring Act 1988 Bay of Plenty Community Trust Incorporated Annual Report for the Year Ended 31 March 1999 Trust Particulars The trust was incorporated on 5 August 1988 as the Trust Bank Bay of Plenty Community Trust, a charitable trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988. The purpose of the community trust is to provide charitable, cultural, philanthropic and recreational benefits to the community. In April 1998 the name was changed to the Bay of Plenty Community Trust. Trustees: Mr R. B. Tait (Chairman), Mr J. M. Black, Mr S. J. Edward, Ms H. P. Jones (Retired 31 May 1998), Mrs J. G. Mahoney, Mr E. E. Ogier, Mrs M. E. Rex Benner (Retired 31 May 1998), Mr B. J. Scantlebury, Mrs G. P. Searancke, Mr T. te Heuheu, Mr L. G. Thurston, Mrs M. B. Townshend, Ms M. Waaka (Effective 1 June 1998) and Ms K. Withers (Effective 1 June 1998). Trust Manager: Mr B. W. Cronin. Accountants: Murray Crossman & Partners, Tauranga. Auditors: Ingham Mora Malcolm & Rassell, Tauranga. Bankers: WestpacTrust, Tauranga. Financial Advisors: Frank Russell Company (N.Z.) Limited, Auckland. Solicitors: Sharp Tudhope, Tauranga. Tax Advisors: KPMG, Christchurch. Chairman's Report for the Year Ended 31 March 1999 Your Trust is Successful I am delighted in this, my final chairman's report, to be able to inform you of yet another very successful year for your trust. Net income for the year was $8,565,000 and trust assets now exceed $111,000,000. We distributed $2,539,000 to 283 community groups and $47,000 to ``Dillon Scholars''. We also reserved $3,197,000 for inflation and population growth, and $3,123,000 as a buffer against possible poor income years ahead. These have now been added to ``general funds'' which has been split to show the two separate reserves. The trust's investment portfolio has been place for a full year now and this is reflected in the higher ``Investment Advice'' fees ($318,000 up from $86,000). Advertising costs also increased significantly from $15,000 to $36,000 as a result of the trust producing and circulating its annual report through Bay of Plenty newspapers. The trust congratulates all donations recipients and acknowledges their hard work and dedication to projects which make the Bay of Plenty a better place. Your Trust is Sensitive Your community trustees are very aware of the huge responsibility they have to ensure that the trust's real capital base is maintained, that good income is earned and that each community distribution is carefully considered. As a cohesive yet diverse group of 12, your trustees are sensitive to different needs in different parts of the Bay, and support various projects accordingly. ``To help build, maintain and enhance Bay of Plenty Communities,'' remains our objective. Trustees are constantly reminded of the crucial role volunteers play in the health of our community. When the board evaluates applications it likes to assess the degree of community contribution that the proposed project has. Often that is measured in the level of voluntary support involved. We recognise the importance of volunteers and will continue to help those helping others. Trustess are also aware of the increasing commitments people face in their already busy lives. Given the competition for time between work, family and community involvement, the trust believes that ongoing support is vital to maintain and encourage the spirit of volunteers. Your Trust is Proactive Your trust is achieving its objective in a variety of ways, including active partnerships with organisations making positive differences throughout our communities. Clearly the trust's strength lies in its ability to make financial contributions. The community organisations have the volunteers and systems in place, and together, we achieve a leverage which makes things happen. In two particular cases, our continued relationship with Sport Bay of Plenty (Coachforce) and our new partnership with Presbyterian Support (Children and their Families Service), the outcomes have confirmed that the trust will continue to look at partnership opportunities with charitable organisations and community groups across the spectrum of welfare, health, sport, leisure and recreation, employment and youth issues. With such synergies in mind, the trust has coordinated a series of ``funders' forums'' meetings with local authorities, some government departments, other charitable trusts and public and private benefactors. It is clear from these discussions that each has its unique strength. Individually we do a lot of good. Collectively we can do even better. Your Trust is Changing This report is my final act as trust chairman. My 8 years on the trust has, without doubt, been a most rewarding involvement and I am very thankful for the opportunity of serving the community in this way. During the past 5 years as chairman, I have been involved in the sale of the trust's 7 percent stake in the former trust bank, the subsequent investment of the funds realised and in redefining the trust's direction. These have been stimulating and challenging times and I thank my fellow trustees for their support. Glenys Searancke of Rotorua took over the chair from June 1 and I wish her well in her new role. I would also like to acknowlege the very significant contributions of three trustees whose terms expired on the 31st day of May: Murray Black, Lyall Thurston and Margaret Townshend. We thank them for their hard work and dedication. The Minister of Finance is expected to announce new appointments in due course. Special thanks also to trust mananger, Bruce Cronin and his assistant, Cindy Currie for their considerable contribution and efforts over the past year. I leave with a steadfast belief in the merits of the community trust. The extraordinary legacy of the founders of the Bay of Plenty Savings Bank, the history of this trust's development and its remarkable impact on the Bay of Plenty is too important to ever be tampered with. ROB TAIT, Chairman. Consolidated Statement of Financial Performance for the Year Ended 31 March 1999 Note 1999$(000) 1998$(000) Income Dividends 503 Interest 3,525 7,268 Other investment income (including unrealised income) 5,203 3,321 Other income and receipts 7 17 9,238 10,606 Less expenditure Advertising 36 15 Audit fees 6 18 Accountancy fees 2 Investment advice 318 86 Office administration 145 143 Office rental 14 11 Other administration costs 35 43 Trustees' fees 78 66 Trustees' expenses 31 37 Preliminary expenses written off 2 665 421 Depreciation 8 12 Total operating costs $673 $433 Net surplus before donations 8,565 10,173 Donations Donations round 2,153 1,854 Business grow 90 90 Task Force Green 2 100 2,245 2,044 Net surplus after donations $6,320 $8,129 (The accompanying notes form part of these financial statements.) Consolidated Statement of Movements in Equity for the Year Ended 31 March 1999 1999$(000) 1998$(000) Equity at 1 April 1998105,293 97,494 Less donations paid from capital: Donations round(294) (302) Dillon Scholarship(47) (28) $104,952 $97,164 Total recognised revenue and expenses for the year6,320 8,129 Equity at 31 March 1999$111,272 $105,293 (The accompanying notes form part of these financial statements.) Consolidated Statement of Financial Position as at 31 March 1999 Note 1999$(000) 1998$(000) Equity 2 Trust capital 89,308 89,308 General funds 15,023 Income fluctuation reserve 12,017 962 Inflation and population reserve 9,947 Total equity $111,272 $105,293 Represented by: Current assets WestpacTrust Current account 17 2 Call account 170 357 Accounts receivable 12 9 Provision for tax 2 2 201 370 Non current assets Term deposits WestpacTrust 12,744 BNZ 600 Portfolio investments 110,657 92,495 Fixed assets3 23 28 111,280 105,267 Total assets $111,481 $105,637 Current liabilities Accounts payable (209) (344) Total net assets $111,272 $105,293 Signed on behalf of the board of trustees: G. P. SEARANCKE, Chairman. B. J. SCANTLEBURY, Trustee. Dated this 5th day of August 1999. (The accompanying notes form part of these financial statements.) Consolidated Statement of Cash Flows for the Year Ended 31 March 1999 1999$(000) 1998$(000) Cash flows from operating activities Cash was provided from: Investment income9,229 7,637 Other7 17 9,236 7,654 Cash was dispersed to: Suppliers of goods and services(499) (375) Trustees(64) (77) Donations to the community(2,777) (2,043) Dillon Memorial Scholarship(47) (28) (3,387) (2,523) Net cash flows from operating activities$5,849 $5,131 Cash flows from investing activities Cash was provided from: Sale of investments18,927 Cash was applied to: Purchase of fixed assets(3) (10) Purchase of investments(24,945) (4,872) Net cash outflows from investing activities(6,021) (4,882) Increase (decrease) in cash held(172) 249 Add cash at 1 April 1998359 110 Cash at 31 March 1999$187 $359 Reconciliation of net surplus and net cash flows from operating activities Net surplus transferred to equity6,320 8,129 Less payments out of capital (Net)(341) (330) Accrued income included in investments (3,508) Add (less) non cash items: Depreciation of fixed assets8 12 Amortisation of Government stocks 14 Movement in working capital: Decrease/(increase) in accounts receivable(3) 542 Increase/(decrease) in accounts payable(135) 272 Net cash flows from operating activities$5,849 $5,131 (The accompanying notes form part of these financial statements.) Notes to the Financial Statements for the Year Ended 31 March 1999 1. Statement of Accounting Policies Reporting Entity The Bay of Plenty Community Trust Incorporated is a charitable trust registered under section 14 (i) of the Trustee Banks Restructuring Act 1988. The group consists of Bay of Plenty Community Trust Inc and its subsidiary Bay of Plenty Community Trust Charities Limited. The financial statements have been prepared as required by the Trustee Banks Restructuring Act 1988 and the trust deed dated 30 May 1988 and in accordance with generally accepted accounting practice. Measurement Base The accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on an historical cost basis are followed by the Group, with the exception of investments which are stated at market value as at 31 March 1999. Specific Accounting Policies The following specific accounting policies which materially affect the measurement of financial performance and the financial position have been applied: (a) Donations: Donations made during the year from revenue are included in the income statement. Those made from trust capital have been included in the statement of movements in equity. (b) Investments: All investments are stated at assessed market value. (c) Fixed Assets: Fixed assets are stated at cost less accumulated depreciation. (d) Depreciation: Depreciation is charged to write off the cost of fixed assets over their expected economic lives using the diminishing value method at rates from 12 percent to 40 percent per annum. (e) Accounts Receivable: Accounts receivable are recorded at their estimated realisable value. (f) Financial Instruments: The trust includes all financial instrument arrangements in the balance sheet using the concept of accrual accounting. Financial instruments are valued as per note 1, measurement base. These instruments arise as a result of everyday operations and include bank, accounts receivable, accounts payable and investments. Revenues and expenses in relation to all financial instruments are recognised in the statement of financial performance. Financial instruments are shown at their fair values. (g) Consolidation: The Bay of Plenty Community Trust and its subsidiary charitable company, Bay of Plenty Community Trust Charities Limited have been consolidated using the purchase method of consolidation. Changes in Accounting Policies There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years. 2. Equity 1999$(000) 1998$(000) Trust capital89,308 89,308 General funds Opening balance15,023 97,471 Less transfer to trust capital 89,308 15,023 8,163 Plus transfer from current year surplus6,320 8,129 Less donations from capital(341) (330) 21,002 15,962 Plus/(less): transfer from investment revaluation reserve 23 Transfer to income fluctuation reserve(11,055) (962) Transfer to inflation and population reserve (9,947) 15,023 Investment revaluation reserve Opening balance 23 Less transfer to general funds 23 Income fluctuation reserve Opening balance962 Transfer from general reserve11,055 962 Inflation and population reserve Transfer from general reserve9,947 Total equity$111,272 $105,293 3. Fixed Assets 1999$(000) 1998$(000) Office furniture and equipment: Cost58 55 Accumulated depreciation35 27 Book value$23 $28 4. Financial Instruments Credit Risks Financial instruments which potentially subject the trust to credit risk principally consist of bank balances, bank term deposits and accounts receivable. Maximum exposure to credit risk as at balance date is: $(000) $(000) Bank balances187 359 Bank term deposits600 12,744 Accounts receivable12 9 Concentrations of Credit Risk The bank balances are held with WestpacTrust and Bank of New Zealand but may be held with other various registered banks and under common funds management. There are no other material concentrations of credit risk. Market Risk The value of investments which are held in equities and fixed interest are subject to market fluctuations. The total investment portfolio has been structured in such a way that any reductions in value in particular asset classes should be offset by increases in other classes; therefore no provision has been made for potential gains or losses that could occur due to market fluctuations. Fair Value The carrying value is considered to be the fair value for financial instruments. 5. Taxation 1999$(000) 1998$(000) Net surplus (before donations) 8,565 10,173 Plus prior year adjustment 3,416 Less non-assessable income (Bay of Plenty Community Trust Charities Limited) (1,011) (732) Plus FIF income 4,047 Less unrealised gains/losses State Street global advisors 258 (2,934) Tower portfolio management (13) 15,275 6,494 Plus non-deductible expenditure 283 248 Plus imputation credits received 73 3 Total taxable income 15,631 6,745 Less beneficiaries income from interest General(2,245) (2,044) Less distribution from Bay of Plenty Community Trust Charities Limited1,273 659 (972) (1,385) Bay of Plenty Community Trust Charities Limited (14,220) (5,300) Total trustees' income 439 60 Trustees' loss brought forward (46) (97) Adjustment to 1998 losses brought forward (171) Imputation credits converted to losses (9) Assessable trustees' income/(loss) 222 (46) Taxation @ 33 percent 73 Less imputation credits received (73) Less withholding tax (2) Provision for taxation (2) 6. Goods and Services Tax The trust is not registered for goods and services tax purposes. Accordingly, these financial statements are stated on a G.S.T. inclusive basis. 7. Related Party Transactions Bay of Plenty Community Trust Charities Limited (the company) is wholly owned by Bay of Plenty Community Trust Incorporated (the trust). During the year the trust made a beneficiaries income distribution to the company of $14.22 million. No related party debts have been written off or forgiven during the year. 8. Segment Information The trust's only activity is to receive income to allocate for charitable, cultural, philanthropic, recreational and other purposes beneficial to the community, principally in the Bay of Plenty area. Schedule of Distributions of Income by Way of Donations for the Year Ended 31 March 1999 Donations made by the trust may be summarised as follows: $(000) 199899 donations round2,447 Employment initiatives Business grow90 Task Force Green2 Dillon Scholarship47 $2,586 (A full list covers a number of pages and is attached to the original of this document. A copy is available on request.) Audit Report to the Members of the Trust Bank Bay of Plenty Community Trust Incorporated We have audited the consolidated financial statements. The consolidated financial statements provide information about the past financial performance of Bay of Plenty Community Trust Incorporated and its financial position as at 31 March 1999. This information is stated in accordance with the accounting policies set out. Trustees' Responsibilities The trustees are responsible for the preparation of consolidated financial statements which present a true and fair view of the financial position of the trust as at 31 March 1999 and of the financial performance and cash flows for the year ended on that date. Auditors' Responsibilities It is our responsibility to express an independent opinion on the consolidated financial statements presented by the trustees and report our opinion to you. Basis of Opinion An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the consolidated financial statements. It also includes assessing: the significant estimates and judgments made by the trustees in the preparation of the consolidated financial statements, and whether the accounting policies are appropriate to the circumstances of the trust, consistently applied and adequately disclosed. We conducted our audit in accordance with generally accepted auditing standards in New Zealand. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the consolidated financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Other than in our capacity as auditors, we have no relationship with, or interest in the trust. Unqualified Opinion We have obtained all the information and explanations we have required. In our opinion: proper accounting records have been kept by the trust as far as appears from our examination of those records; and the consolidated financial statements shown: comply with generally accepted accounting practice; and give a true and fair view of the financial position of the trust as at 31 March 1999 and the financial performance and cashflows for the year ended on that date. Our audit was completed on 5 August 1999 and our unqualified opinion is expressed as at that date. INGHAM MORA MALCOLM & RASSELL, Chartered Accountants. Tauranga.
Publication Date
26 Aug 1999

Notice Number

1999-gn6176

Page Number

2442