31 JULY

NEW ZEALAND GAZETTE

2305

We maintain a long-term perspective in our investment philosophy consistent with the nature of the community trust fund we administer. I have discussed the appropriateness of this with the Minister of Finance.

Your trustees have spent considerable time and effort developing a strategic plan for the trust this year and this will be posted on our web site shortly. We would welcome your input on its appropriateness and suggestions for improvement.

The strategic plan documents the philosophy of the trust. There is an element of change evolving in our policies. This is pursuant to our trustees’ belief that we may be able to better enhance the well-being of the more deprived sections of our community by a change in our investment and donation policy. By working in liaison with other key stakeholders in our community, we may be able to identify some key community agreed initiatives which we can jointly fund to raise the economic prospect for those communities where the need is greatest. If we can achieve this, we will have the prospect of making a greater positive impact long term. We believe that to address deprivation, improved economic options and income flows need to be made available in those areas of need.

The Bay of Plenty population is continuing to grow at a rapid rate. The trust has, in the past, had a policy of building its capital by reserving out of income sufficient funds to maintain the real value of the trust’s capital relative to both inflation and population growth within the Bay of Plenty. With reducing interest rates and long-term investment return expectations, this policy would appear to be unsustainable if the trust wishes to continue distributions to the community at reasonable and meaningful levels. Trustees have therefore decided to reduce our reserving policy in relation to population growth to 50% of the rate of increase instead of 100% as in the past.

During the past year, the trust has made donations of $2,256,000.00. These donations have been made despite the loss experienced this year by using a further portion of reserves put aside in the past in anticipation of possible poor investment results.

Trustees have worked hard to help obtain additional funding for the CoachForce programme run by Sport Bay of Plenty. The hugely successful model is now in the process of being adopted nationwide through the regional sports trusts. The Bay of Plenty Community Trust has funded the programme fully for the last six years but needed to reduce its ongoing commitment. I am pleased to signal that this has been successful and the programme should be able to continue long term with the Bay of Plenty Community Trust providing half the external (non-sports) funding and Sport and Recreation New Zealand sourcing the balance.

The trustees have considered ways to increase the capital of the trust. To this end, we have produced a brochure appealing to individuals to consider the trust as an appropriate beneficiary in their wills. A contribution to the trust would create a lasting legacy with security of knowledge that it will be appropriately targeted to enhance our community by responsible trustees from throughout the region with high levels of local knowledge and empathy. Our hope is that this trust will have an even greater positive impact on our community in the future and we commend this legacy option to you.

I thank fellow trustees for their excellent input to the trust. We have had two new appointments to the trust. Sandra Kai Fong from Rotorua and Enid Leighton from Whakatane replacing Egan Ogier from Tauranga and Kay Withers from Whakatane. Egan had been a trustee for eight years.

We acknowledge Egan’s contribution. His wisdom and financial experience were very valuable to the trust. Kay Withers we thank also. She was an extremely competent trustee with excellent knowledge and skills who contributed in a very worthwhile manner to his community effort.

I also acknowledge the continuing excellent administration team at the trust office. Bruce Cronin and Cindy Currie run an efficient office with enthusiasm. This helps the trustees and the beneficiaries immensely.

RAY SHARP, Chairman.

Date: 10 June 2003.

Consolidated Statement of Financial Performance for the Year Ended 31 March 2003

Less expenditure:

| Advertising/public reporting | 50 | 48 |
| Audit fees | 7 | 6 |
| Accountancy fees | 9 | 9 |
| Portfolio management and advisory fees | 322 | 327 |
| Office administration | 207 | 190 |
| Office rental | 14 | 14 |
| Other administration costs | 94 | 52 |
| Trustees’ fees | 109 | 103 |
| Trustees’ expenses | 45 | 52 |
| | 857 | 801 |

| Depreciation | 11 | 8 |
| Loss on disposal of assets | 1 | 1 |
| Total operating costs | 869 | 810 |

| Net surplus/(deficit) before donations | (6,117) | 1,615 |