8 AUGUST

NEW ZEALAND GAZETTE

2561

Trustees:
Mr R. B. Sharp (Chair), Mrs H. A. Brown, Ms T. J. Eggleton, Mrs J. Knudsen, Mrs P. J. McLeod, Mr E. E. Ogier,
Mrs B. M. Ross, Mr B. J. Scantlebury (term expired 13 June 2001), Mrs G. P. Searancke (term expired 13 June 2001), Mr
T. M. te Heuheu (term expired 13 June 2001), Ms M. Waaka, Ms K. Withers, Mr L. Martin (appointed 6 August 2001), Mrs
M. Ngatai (appointed 13 June 2001), Mr V. Payne (appointed 13 June 2001).

Trust Manager:
Mr B. W. Cronin.

Accountants:
Murray Crossman & Partners, Tauranga.

Auditors:
Ingham Mora, 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 2002

“Disappointing Returns May Impact Donations”

As most people will be aware, the 12 months ended 31 March 2002 was a disappointing investment period. Global equity
returns were down dramatically and interest rates declined gradually over the period.

Fortunately, your trust has a well-diversified and reasonably conservative investment portfolio which returned $2.4m over the
year; not a huge gain on a $114m portfolio, but at least not a loss.

Despite the disappointing returns and thanks to the trust’s reserving policies, we were still able to pay out donations totalling
$3.5m, not far down from last year’s record level of $3.9m. Prominent among these payments was $1m to the Whakatane
District Aquatic Centre (approved the previous year) and $600,000 to Sport Bay of Plenty’s Coach Force programme.

The contribution to the Aquatic Centre used up the balance in the trust’s major community facilities reserve. It is unlikely that
this reserve, which has been used to fund projects recommended by the Bay of Plenty’s seven mayors through a mayoral forum
protocol, can be funded again until investment returns improve.

Two consecutive poor investment years is unusual. Certainly they came after a run of several years of very good returns but the
fact remains that donations have exceeded income for two years now and clearly this cannot continue indefinitely.

Your trust continues to be guided by leading international investment advisors and I am totally satisfied that your trustees have
maintained appropriate investment and reserving policies and have confidence that better returns will come – history and
expert advice support this view.

But for the present, we have had to take decisions acknowledging that we cannot go on donating more than we earn
indefinitely. Last year we re-instituted prior trust policies that we would not generally consider applications until at least 50%
of a project’s funding was committed; and that we would not generally contribute towards organisations’ salary and wage
costs. These measures have reduced the demand on trust funds to some extent, but applications still significantly exceed funds’
availability.

If investment returns do not improve as the 2002/03 year progresses, trustees will have to consider further measures to reduce
demand and this might even mean foregoing the third donations round planned for November.

Despite the limitations imposed by reduced returns, I am enthusiastic about the trust and its benefits to our community. The
wider Bay of Plenty, which we serve, is a magnificent region and the communities have wonderful potential. I continue to be
astounded by the many valuable volunteer-based organisations which make such a contribution to the fabric of our society and
which set our communities above most of those I have seen elsewhere in the world.

I believe the significance of the trust’s contributions to our communities is major. Many organisations we help involve large
volunteer inputs but funds are hard to raise – especially in poorer communities. Our donations often make a key difference to
significant achievements and these really do enhance our communities.

Trustees are continually reviewing our policies to obtain improved leverage for the limited money available. One of the
benefits of the trust’s structure is that decisions are made by trustees who live locally and who know their communities well.
We are constantly looking at ways we can work better to make a difference. This includes looking at ways we can co-ordinate
with other funders in our region.

One way the trust could make a greater difference and be more innovative would be to have greater funds available. I see this
trust as being an ideal community-administered charitable trust to be the recipient for individual’s bequests where they want to
leave an enduring benefit for the Bay of Plenty community. The structure and administration is here within the Bay of Plenty
Community Trust.

I would urge those who are able, to consider this as an option in their wills.

This is one way the trust’s capital base could be expanded to make more funds available in the future. It is in all our interests to
strive to maintain and enhance the quality of our community, which I know most of us are justifiably proud of.