NEW ZEALAND GAZETTE

No. 126

• Youth activities
• Culture and heritage
• Environmental

A further $527,967 was granted to the "Secondary Schools Millennium Technology Project" in line with the original commitment.

Financial Results

I regret to report that the trust incurred a deficit of $551,462 for the year under review. The contributing cause of this result was the extremely poor performance of the overseas equity market, with the events of 11 September 2001 compounding the problem.

Early in the year, before the overseas market collapse and the disastrous 11 September event, the trustees resolved to carry out a full review of its statement of investment policies and objectives.

As a result of this review, the trust appointed a new investment consultant, Mr Michael Chamberlain of MCA (NZ) Limited, who recommended a more passive investment approach, and a move to a multi-investment manager structure.

Guardian Trust Funds Management now retains responsibility for managing domestic fixed interest and New Zealand Bonds, Bankers Trust advising on New Zealand equities, with the major off-shore investments being managed by State Street Global Advisers.

It has to be accepted that the community trust is a large international investor, and will always be subject to fluctuations in the international financial markets. We believe we have a system which should provide a good return over a long period with minimal risk.

Appointment of Auditor

The trust appointed Martin Wakefield, Chartered Accountants of Timaru, to act as auditors to the trust.

Donations Assessment Process

To ensure that the trust’s donations are channelled into areas of most need, the trust is underwriting the cost of a socio-economic district survey during the next financial year. The well-known researcher, Dr Gabrielle Maxwell, of the Institute of Criminology, Victoria University of Wellington, will undertake the study and the trust will be involving other district organisations with the study to ensure that all areas are canvassed.

Year of the Volunteer

In 2001, the trust decided to recognise The Year of the Volunteer by sponsoring a number of seminars in conjunction with Aoraki Polytechnic to upgrade the secretarial and accounting skills of district voluntary and non-profit organisations. It is disappointing to record that only minor district interest was expressed in this project. The trust intends to further promote this worthwhile project during the next year.

Trustee Appointment

During the year, Mr Angus McKay retired from the office of trustee. He represented the interests of the greater community of Methven in a forceful and effective way. On behalf of those communities, I would like to thank Angus for his long service.

Mr Geoff Geering, Q.S.O., of Ashburton, was appointed to replace him. There is no doubt Geoff’s vast knowledge and the respect in which he is held, will play an important part in the contribution he makes to the activities of the trust in the future.

Appreciation

The year has been a challenging one for all trustees, particularly with regard to managing the complexities associated with a volatile investment market. They have the common objective of enhancing the Mid-South Canterbury region, and I express my sincere thanks for all their co-operation and their professional approach which they bring to the decision-making table.

I also want to pay tribute to the work and commitment of the administration staff, who go well beyond the call of any job description. They display a personal commitment in their employment to enhancing the community values our organisation aspires to.

P. F. MCILRAITH, Chairperson.

Date: 26 August 2002.

Consolidated Statement of Financial Performance for the Year Ended 31 March 2002