Annual Report for the Year Ended 31 March 2000
Trust particulars
The Trust is a charitable trust in accordance with the provisions of the Community Trusts Act 1999.
Trustees:
Mrs G. P. Searancke (Chair), Mr R. B. Tait (retired 31 May 1999), Mr J. M. Black (retired 31 May 1999), Mrs H. A. Brown (appointed 19 August 1999), Mr S. J. Edward, Mrs J. Knudsen (appointed 19 August 1999), Mrs J. G. Mahoney, Mr E. E. Ogier, Mrs B. M. Ross (appointed 19 August 1999), Mr B. J. Scantlebury, Mr R. B. Sharp (appointed 19 August 1999), Mr T. M. Te Heuheu, Mr L. G. Thurston (retired 31 May 1999), Mrs M. B. Townshend (retired 31 May 1999), Ms M. Waaka, Ms K. Withers.
Trust manager:
Mr B. W. Cronin.
Accountants:
Murray Crossman & Partners, Tauranga.
Auditors:
Ingham Mora Malcolm & Rassell, Tauranga.
Bankers:
BNZ, Tauranga.
WestpacTrust, Tauranga.
Financial advisors:
Frank Russell Company (N.Z.) Ltd, Auckland.
Solicitors:
Sharp Tudhope, Tauranga
Tax advisors:
KPMG, Christchurch.

Chairman's Report for the Year Ended 31 March 2000
"To help build, maintain and enhance Bay of Plenty Communities."
That is the objective your Trust has set for itself.
In my first year as Chair, I am delighted to be able to report to Trust beneficiaries, that is, all the people of the Bay of Plenty, that the Trust has kept this objective solidly in mind, as the results will show.
In the year to 31 March 2000, your Trust has:
· Distributed $2,557,189 to 254 community groups serving the Bay of Plenty.
· Paid a total of $57,535 in Dillon Scholarships to 41 people with disabilities who are undertaking tertiary study.
· Extended the very successful CoachForce partnership with Sport Bay of Plenty for a further 3 years at a total cost to the Trust (last three years and next three) of $3,900,000.
· Commenced a "Regional Facilities Reserve" with an initial deposit of $1,926,000, to enable significant contributions to major Bay of Plenty sports, recreational and cultural facilities in the future.
· Entered into discussions with all the Region's Mayors (collectively) to reach agreement on how the Trust can best assist in the funding of projects with regional significance.
· Reserved $636,000 to cover inflation and population growth.
· Reserved $4,942,000 as a buffer against possible poor income years ahead.
All this has been made possible by a record income of $10,929,000 and a pleasing net surplus before donations of $10,119,000. A lower inflation rate and a slightly lower Bay of Plenty population growth rate have also freed up funds for other uses.
Every hour of every day our lives is enriched by people in our communities who devote time, energy and passion to helping others. I genuinely congratulate all those people, and especially those who have received Trust funding. We can't assist every group, every time, but my Trustees and I do our best to allocate the funds we have available in ways which we consider will give the greatest long-term Bay of Plenty benefits.
Four new trustees joined us in August 1999 - Hilary Brown (Taupo), Jeanette Knudsen (Tauranga), Ray Sharp (Opotiki) and Berys Ross (Te Puke). Each has brought the benefits of her/his own skills and experience to the board table and the Trust is richer for that. With regret we farewell Rotorua trustee Stewart Edward, who retires after eight years, and acknowledge the enormous contribution he has made.
Finally, my thanks also to Trust manager Bruce Cronin and donations officer Cindy Currie for their contribution and efforts over the past year. My role as Chair has been easier and the performance of the Trust has been significantly enhanced by their hard work and dedication.
GLENYS SEARANCKE, Chair.
16 June 2000.

Consolidated Statement of Financial Performance for the Year Ended 31 March 2000

2000 1999
$(000) $(000)
Income:
Dividends 1,327 503
Interest 2,238 3,525
Other investment income (including unrealised income) 7,347 5,203
Donations cancelled and refunded 17 7
10,929 9,238
Less expenditure:
Advertising 64 36
Audit fees 6 6
Accountancy fees 16 2
Portfolio management fees 330 318
Office administration 164 145
Office rental 14 14
Other administration costs 42 35
Trustees' fees 105 78
Trustees expenses 59 31
800 665
Depreciation 10 8
Total operating costs 810 673
Net surplus before donations 10,119 8,565
Donations:
Donations round 2,285 2,153
Business grow 0 90
Task Force Green 0 2
2,285 2,245
Net surplus after donations 7,834 6,320
Transfers to:
Income fluctuation reserve 4,942
Inflation and population reserve 636
Regional facilities reserve 1,926
7,504
Net surplus after transfer to reserves 330
(The accompanying notes form part of these financial statements.)
Consolidated Statement of Movements in Equity for the Year Ended 31 March 2000
2000 1999
$(000) $(000)
Equity at 1 April 1999- 111,272 105,293
Less donations paid from capital:
Donations round (272) (294)
Dillon Scholarship (58) (47)
110,942 104,952
Net surplus 330 6,320
Increase in income fluctuation reserve 4,942 11,055
Increase in inflation and population reserve 636 9,947
Increase in regional facilities reserve 1,926 0
Decrease in general reserves 0 (21,002)
Total recognised revenue and expenses for the year 7,834 6,320
Equity at 31 March 2000 118,776 111,272
(The accompanying notes form part of these financial statements.)
Consolidated Statement of Financial Position as at 31 March 2000
note 2000 1999
$(000) $(000)
Equity 2
Trust capital 89,308 89,308
Income fluctuation reserve 16,959 12,017
Inflation and population reserve 10,583 9,947
Regional facilities reserve 1,926 0
Total equity 118,776 111,272
Represented by:
Current assets-
WestpacTrust-
Current account 34 17
Call account 69 170
Bank of New Zealand-
Term deposit 181 600
Accounts receivable 0 12
Community loans 12 19 0
Provision for tax 0 2
303 801
Non current assets-
Investments 5 118,644 110,657
Fixed assets 3 26 23
118,670 110,680
Total assets 118,973 111,481
Current liabilities-
Accounts payable (184) (203)
Employees entitlement payable (13) (6)
(197) (209)

Total net assets 118,776 111,272
Signed on behalf of the Board of Trustees:
G. P. SEARANCKE, Chairman.
B. J. Scantlebury, Trustee.
Date 23 June 2000.
(The accompanying notes form part of these financial statements.)
Consolidated Statement of Cash Flows for the Year Ended 31 March 2000
2000 1999
$(000) $(000)
Cash flows from operating activities-
Cash was provided from:
Investment income 10,923 9,229
Other 17 7
10,940 9,236
Cash was dispersed to:
Suppliers of goods and services (695) (499)
Trustees (100) (63)
Donations to the community (2,572) (2,777)
Dillon Memorial Scholarship (58) (47)
(3,425) (3,386)
Net cash flows from operating activities 7,515 5,850
Cash flows from investing activities-
Cash was provided from:
Sale of investments 13,800 18,926
Cash was applied to:
Purchase of fixed assets (14) (3)
Purchase of investments (21,386) (24,945)
Net cash outflows from investing activities (7,600) (6,022)
Increase (decrease) in cash held (84) (172)
Add cash at 1 April 1999 187 359
Cash at 31 March 2000 103 187
Reconciliation of net surplus and net cash flows from operating activities-
Net surplus transferred to equity 7,833 6,320
Less payments out of capital (net) (330) (341)
Add (less) non cash items:
Depreciation of fixed assets 10 9
Movement in working capital:
Decrease/(increase) in accounts receivable 12 (3)
Increase/(decrease) in accounts payable (10) (135)
Net cash flows from operating activities 7,515 5,850
(The accompanying notes form part of these financial statements.)
Notes to the Financial Statements for the Year Ended 31 March 2000
1. Statement of accounting policies
Reporting entity
The Trust is a charitable trust in accordance with the provisions of the Community Trusts Act 1999. 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 Community Trusts Act 1999 and the trust deed dated
30 May 1988 and in accordance with the Financial Reporting Act 1993.
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 2000.
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% to 40% 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.
2000 1999
$(000) $(000)
2. Equity
Trust capital 89,308 89,308
General funds-
Opening balance 0 15,023
Plus transfer from current year surplus 330 6,320
Less donations from capital (330) (341)
0 21,002
Plus/(less): Transfer from investment
Transfer to income fluctuation reserve 0 (11,055)
Transfer to inflation and population reserve 0 (9,947)
0 0
Income fluctuation reserve
Opening balance 12,017 962
Increase in reserve 4,942 11,055
16,959 12,017
Regional facilities reserve
Opening balance 0 0
Increase in reserve 1,926 0
1,926 0
Inflation and population reserve
Opening balance 9,947 0
Increase in reserve 636 9,947
10,583 9,947

Total equity 118,776 111,272

2000 1999
$(000) $(000)
3. Fixed assets
Office furniture and equipment:
Cost 71 58
Accumulated depreciation 45 35
Book value 26 23
4. Financial instruments
Investments are stated at market value as at balance date. Accrued interest, accounts payable, community loans and donations approved not yet paid are stated at the amounts expected to be received or paid. Accordingly, the trustees consider that the fair value of each class of financial assets and financial liabilities is the same as the carrying value in the financial position.
Concentration of investments
Ninety-nine point seven percent (99.7%) of the assets of the Trust are represented by investments held with a range of financial institutions. However, the trustees consider the risk of non-recovery of these investments to be minimal. Maximum exposure to credit risk as at balance date is:
$(000) $(000)
Bank balances 103 187
Bank term deposits 181 600
Accounts receivable 0 12
Community loans 19 0
Investments 118,644 110,657
Currency risk
The Trust incurs currency risk as a result of investment transactions entered into by fund managers. The Trust has a policy of fully hedging Global Bonds and fifty percent hedging of Global Equities.
Interest rate risk
The following investments of the Trust are sensitive to changes in interest rates Bank call accounts and deposits, government and local authority securities, and securities held by fund managers.
Fair value
The carrying value is considered to be the fair value for financial instruments.
5. Investments
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. The investment portfolio as at 31 March 2000 is diversified as follows:
ANZ Asset State Street Tower Asset Total
Management Global Advisors Management
New Zealand equities 0 0 5,765 5,765
New Zealand fixed interest 36,339 0 13,407 49,746
New Zealand cash 459 0 628 1,087
Global Bonds (fully hedged) 0 0 22,787 22,787
Global Equities (50% hedged) 0 39,259 0 39,259
Total 2000 36,798 39,259 42,587 118,644
Total 1999 45,857 21,967 42,833 110,657

2000 1999
6. Taxation $(000) $(000)
Net surplus (before donations) 10,118 8,565
Plus prior year adjustments 0 3,416
Less non-assessable Income (Bay of Plenty Community Trust Charities Ltd) (2,408) (1,011)
Plus FIF income 0 4,047
Less unrealised gains/losses
State Street global advisors (6,111) 258
1,599 15,275
Plus non-deductible expenditure 317 283
Plus imputation credits received 98 73
Holiday pay 11 0
Total taxable income 2,025 15,631
Less beneficiaries distribution (2,285) (2,245)
Less distribution from Bay of Plenty Community Trust Charities Limited 1,555 1,273
(730) (972)
Bay of Plenty Community Trust Charities Limited (1,270) (14,220)
Total trustees' income 25 439
Trustees' loss brought forward 0 (46)
Adjustment to losses brought forward (1,269) (171)
Imputation credits converted to losses (295) 0
Assessable trustees' Income (1,539) 222
Taxation at 33% 0 73
Less imputation credits received 0 (73)
Less withholding tax 0 (2)
Provision for taxation 0 (2)
7. 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.
8. 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 $1.27m.
No related party debts have been written off or forgiven during the year.
9. 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.
10. Contingent liabilities
The following future donations are subject to the trustees being entirely satisfied with the way the previous donations have been spent and the outcomes they have generated.
Year Ending
Donation recipient 31-Mar-01 31-Mar-02 31-Mar-03
Sport Bay of Plenty 700 600 500
Presbyterian Support 200 50 0
Halberg Trust 23 0 0
Total contingent liabilities ($000) $923 $650 $500
11. Commitments
Capital commitments:
There are no capital commitments.
Lease commitments:
Lease commitments under non-cancellable operating leases:
Less than one year ($000) $7
12. Community loans
Community loans:
The community loans have been advanced as follows:
Original Advance Balance Balance
Amount Date 31-Mar-00 31-Mar-99
Selwyn Ridge Primary School $15 August-99 $11 $0
Argos Gymnastics Club Inc $10 July-99 $8 $0
Total ($000) $25 $19 $0
The loans are advanced interest free over two years with eight quarterly repayments.
13. Regional facilities reserve
This is a new reserve established during the current year to assist with major regional projects.
(A full list of all distributions of income by way of donations for the year ended 31 March 2000 is available from the Trust's Office on request.)