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 1998 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 T. A. Currie (Resigned 31 May 1997), Mr S. J. Edward, Ms H. P. Jones, 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 and Mrs M. B. Townshend. Trust Manager: Mr B. W. Cronin. Auditors: Ingham Mora Malcolm & Rassell, Tauranga. Bankers: WestpacTrust, Tauranga. Financial Advisors: Frank Russell Coy, Auckland. Solicitors: Sharp Tudhope, Tauranga. Tax Advisors: KPMG, Christchurch. Chairman's Report for the Year Ended 31 March 1998 A successful year for your trust: I am pleased to report to you on another successful year for your trust as we see the assets now exceed $100,000,000. Total income for the year was $10,180,705 which is an increase of approximately $1.1 million over that achieved in the previous financial year. Future generations will be well-served, too: Of the remaining income, allocations were made to our reserves to ensure that future generations can benefit from the trust and that distributions to our communities continue. Accordingly, the trust has adopted a reserving policy to allow for inflation, regional population growth and for the contingency of yearly fluctuations to our income. In administering this policy funds have been allocated to Bay of Plenty Community Trust Charities Limited which is a subsidiary owned 100 percent by the trust. This income will be available for future donations to charitable organisations. The total assets of $105,300,000 have been invested in a diversified portfolio of assets both nationally and internationally. For the 1998 reporting year a large portion of these investments were held in term deposits within New Zealand. As investment contracts were completed during the year funds were allocated to the portfolio. We are pleased to continue to have the advice of Frank Russell and Co our lead advisor who is assisting the trust with these investments. Benefits spread far and wide: A total of 245 Bay of Plenty organisations received donations totalling $2,374,855 for a wide range of charitable, cultural, recreational, educational and social purposes. The basic criteria for the trust are to ensure that the donation helps to build, maintain and enhance Bay of Plenty communities. During the year the trust was delighted to join Sport Bay of Plenty with its innovative and exciting coach force programme. This programme has potential to significantly enhance sporting opportunities particularly for youth throughout the Bay of Plenty region. The trust's funds have allowed coaching centres to be established in Rotorua, Tauranga and Whakatane and supported the employment of ``coaching directors'' to 11 different sporting codes. The key objective is to gain, train and retain effective coaches throughout the Bay and to encourage sporting participation for our young people. Other initiatives were to support employment opportunities throughout the Bay through the business grow network and Task Force Green projects. The trust continues its support for disabled students pursuing tertiary education with $28,250 through the Dillon Scholarship scheme. Your trust is in a sound financial position and the income has been used to help many organisations in the Bay of Plenty pursue their objectives in making the Bay of Plenty a better place to live. To my fellow trustees I extend a very sincere thank you for the extensive hours worked on trust business during a challenging and interesting year. Special thanks go to our retiring trustee Margaret Rex-Benner after serving 4 years with the trust. My thanks also to the trust manager and staff, Bruce Cronin and Susan Northey for their significant contribution to the trust's successful 1998 year. ROB TAIT, Chairman. Dated this 24th day of June 1998. Consolidated Statement of Financial Performance for the Year Ended 31 March 1998 Note 1998$(000) 1997$(000) Income Dividends2 2,140 Interest 7,268 7,405 Other investment income (including unrealised income) 3,321 Other income and receipts 17 1 10,606 9,546 Less expenditure Advertising 15 11 Audit fees 18 4 Office administration 143 107 Office rental 11 13 Other administration costs 129 219 Trustees' fees 66 66 Trustees expenses 37 33 Preliminary expenses written off 2 421 453 Depreciation 12 14 Total operating costs $433 $467 Net surplus before donations 10,173 9,079 Donations Donations round 1,854 Business grow 90 Task Force Green 100 2,044 Net surplus after donations $8,129 $9,079 (The accompanying notes form part of these financial statements.) Consolidated Statement of Movements in Equity for the Year Ended 31 March 1998 1998$(000) 1997$(000) Equity at 1 April 199797,494 79,716 Less donations paid from capital: Special donations (61) Donations round(302) (2,133) Business grow (86) Task Force Green (100) Dillon Scholarship(28) (9) $97,164 $77,327 Net surplus for the year8,129 9,079 Increase in revaluation reserve 23 Capital profit on sale of TBNZ shares 11,065 Total recognised revenue and expenses for the year8,129 20,167 Equity at 31 March 1998$105,293 $97,494 (The accompanying notes form part of these financial statements.) Consolidated Statement of Financial Position as at 31 March 1998 Note 1998$(000) 1997$(000) Equity 3 Trust capital 89,308 General funds 15,023 97,471 Investment revaluation reserve 23 Income fluctuation reserve 962 Total equity $105,293 $97,494 Represented by: Current assets WestpacTrust Current account 2 35 Call account 357 75 Accounts receivable 9 551 Provision for tax 2 370 661 Non current assets Term deposits 12,744 95,431 Portfolio investments 92,495 1,444 Fixed assets4 28 30 105,267 96,905 Total assets $105,637 $97,566 Current liabilities Accounts payable (344) (72) Total net assets $105,293 $97,494 Signed on behalf of the board of trustees: R. B. TAIT, Chairman. B. J. SCANTLEBURY, Trustee. Dated this 24th day of June 1998. (The accompanying notes form part of these financial statements.) Consolidated Statement of Cash Flows for the Year Ended 31 March 1998 1998$(000) 1997$(000) Cash flows from operating activities Cash was provided from: Investment income7,637 Dividends from Trust Bank New Zealand Limited 2,140 Interest on investments 6,857 Other17 7,654 8,997 Cash was dispersed to: Suppliers of goods and services(375) (356) Trustees(77) (83) Donations to the community(2,043) (2,356) Dillon Memorial Scholarship(28) (9) (2,523) (2,804) Net cash flows from operating activities$5,131 $6,193 Cash flows from investing activities Cash was provided from: Sale of shares 87,167 Cash was applied to: Purchase of fixed assets(10) (22) Purchase of investments(4,872) (93,385) Net cash outflows from investing activities(4,882) (6,240) Increase (decrease) in cash held249 (46) Add cash at 1 April 1997110 156 Cash at 31 March 1998$359 $110 Reconciliation of net surplus and net cash flows from operating activities Net surplus transferred to equity8,129 9,078 Less payments out of capital (Net)(330) (2,389) Fixed asset purchases in accounts payable (20) Accrued income included in investments(3,508) Add (less) non cash items: Depreciation of fixed assets12 14 Amortisation of Government stocks14 13 Movement in working capital: Decrease/(increase) in accounts receivable542 (502) Increase/(decrease) in accounts payable272 (1) Net cash flows from operating activities$5,131 $6,193 (The accompanying notes form part of these financial statements.) Notes to the Financial Statements for the Year Ended 31 March 1998 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 earnings and financial position on a historical cost basis are followed by the trust, with the exception of investments which are market valued as at 31 March 1998. 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 All accounting policies have been applied on bases consistent with those used in previous years. 2. Dividends 1998$(000) 1997$(000) Trust Bank New Zealand Limited 2,140 Community Trusts Investment Limited $2,140 From the current year onwards, dividends included in ``Investment Income''. 3. Equity 1998$(000) 1997$(000) Trust capital Transfer from general funds89,308 General funds Opening balance97,471 21,340 Less transfer to trust capital89,308 8,163 21,340 Plus transfer from current year surplus8,129 9,079 Less donations from capital(330) (2,389) 15,962 28,030 Plus/(less): transfer from investment revaluation reserve23 58,376 Capital profit on sale of TBNZ shares 11,065 Transfer to income fluctuation reserve(962) 15,023 97,471 Investment revaluation reserve Opening balance23 58,376 Plus revaluation for the year 23 Less transfer to general funds23 58,376 23 Income fluctuation reserve Transfer from general reserve962 Current year surplus Surplus for the year10,173 9,079 Less donations(2,044) Surplus transferred to general funds8,129 9,079 Total equity$105,293 $97,494 4. Fixed Assets 1998$(000) 1997$(000) Office furniture and equipment: Cost55 46 Accumulated depreciation27 15 Book value$28 $31 5. 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) $(000) Bank balances359 110 Bank term deposits12,744 95,431 Accounts receivable9 551 Concentrations of Credit Risk The bank balances are held with WestpacTrust but may be held with other various registered banks and under common funds management. There are no other material concentrations of credit risk. Market Risk The value of investments which are held in equities and fixed interest are subject to market fluctuations. The total investment portfolio has been structured in such a way that any reductions in value in particular asset classes should be offset by increases in other classes; therefore no provision has been made for potential gains or losses that could occur due to market fluctuations. Fair Value The carrying value is considered to be the fair value for financial instruments. 6. Taxation 1998$(000) 1997$(000) Net surplus (before donations) 10,173 9,079 Less non-assessable income (Bay of Plenty Community Trust Charities Limited) (732) Less unrealised gains/losses State Street global advisors(2,934) Tower portfolio management(13) (2,947) 6,494 9,079 Plus non-deductible expenditure 248 31 Plus imputation credits received 3 1,054 Total taxable income 6,745 10,164 Less beneficiaries income from interest General(2,044) Less distribution from Bay of Plenty Community Trust Charities Limited659 (1,385) Bay of Plenty Community Trust Charities Limited(5,300) (6,685) 7,043 Total trustees' income 60 3,121 Less trustees' loss brought forward (97) Assessable trustees' income/(loss) (37) 3,121 Taxation @ 33 percent 0 1,030 Less imputation credits received (3) (1,054) Net imputation credits available to convert to loss carried forward (3) (24) Converted to loss (@ 33 percent) of (9) (97) Total loss carried forward $(46) $(97) 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 $5.3 million. 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. Schedule of Distributions of Income by Way of Donations for the Year Ended 31 March 1998 Donations made by the trust may be summarised as follows: $(000) 199798 donations round2,156 Employment initiatives Business grow90 Task Force Green100 Dillon Memorial Scholarship28 $2,374 (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 1998. 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 1998 and of the results of operations 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 1998 and the results of its operations and cash flows for the year ended on that date. Our audit was completed on 24 June 1998 and our unqualified opinion is expressed as at that date. INGHAM MORA MALCOLM & RASSELL, Chartered Accountants. Tauranga.
Publication Date
6 Aug 1998

Notice Number

1998-gn5525

Page Number

2642