26 JULY 2007

NEW ZEALAND GAZETTE, No. 84

2191

● BayTrust continues to keep its overseas investments fully hedged to the New Zealand dollar so that asset values and returns cannot be impaired by a rising New Zealand dollar.

● The trust has entered into an agreement with the Taupo-based Philips Search and Rescue trust to fund the Rotorua-based BayTrust Rescue Helicopter for three years at $200,000 a year.

● The trust has developed a new Strategic Plan 2007-2010 which gives further guidance to the way the trust intends to work with and for Bay of Plenty communities.

The trust continues to be the foundation and backbone supporter of Sport BoP’s hugely successful CoachForce programme. Since its inception as a Sport BoP/BayTrust partnership in 1997, the trust has contributed nearly $5m to this critically important programme. We congratulate Sport BoP and all those involved in now taking the programme out nationally.

After almost six years as chairperson of BayTrust, Ray Sharp of Opotiki stood down from that role in February of this year, in preparation for his scheduled retirement from the trust on 31 May 2007. We pay a very sincere and heart-felt compliment to Ray for his leadership and for the skills, insights and professionalism he brought to the position. Ray led the trust through some very difficult investment times in the early 2000s and the trust’s present strong position is a credit to him and indeed to all trustees.

During the year under review, trustees Maureen Waaka (Rotorua) and Enid Leighton (Whakatane) retired and their places were taken by Ray Morrison (Rotorua) and Anne Simpson (Whakatane). Maureen had served two terms (eight years) with the trust and is particularly remembered for her passion for matters Māori and her deep involvement with the trust’s Dillon Scholarship programme. Enid had served one term and during that time was a strong contributor to the trust overall.

Our sincere thanks to all trustees and staff for the part they have played in BayTrust’s highly successful 2006/07 year. Making grants to help build, strengthen and enhance Bay of Plenty communities is certainly very rewarding but it involves a huge amount of hard work and dedication too, and all trustees and staff can feel rightly pleased to have been part of the year’s excellent results.

PAULA THOMPSON, Chairperson.
BRUCE W. CRONIN, Trust Manager.

Date: 3 July 2007.

Statement of Financial Performance for the Year Ended 31 March 2007

| | 2007
| | $000 |
|------------------------|-------|
| Income: | |
| Dividends | 3,238 |
| Interest | 1,693 |
| Investment gains/(losses)| 8,128|
| Grants cancelled and refunded| 4 |
| |13,063 |
|
| Less expenditure: | |
| Advertising/public reporting| 61 |
| Audit fees | 7 |
| Accountancy fees | 9 |
| Portfolio management and advisory fees| 643 |
| Office administration | 259 |
| Office rental | 61 |
| Other administration costs| 75 |
| Trustees’ fees | 155 |
| Trustees’ expenses | 46 |
| |1,316 |
| Depreciation | 16 |
| Loss on disposal of assets| 2 |
| Total operating costs| 1,334|
|
| Net surplus/(deficit) before grants| 11,729|
| Less grants | 3,552 |
| Net surplus/(deficit) after grants| 8,177|

Plus/(less) transfers:
| Income fluctuation reserve | (3,030)|
| Inflation and population growth reserve| (4,985)|
| |(8,015)|
|
| Net surplus/(deficit) after reserve transfers| 162 |

| | 2006
| | $000 |
|------------------------|-------|
| Income: | |
| Dividends | 3,495 |
| Interest | 2,594 |
| Investment gains/(losses)|11,107|
| Grants cancelled and refunded| 4 |
| |17,200 |
|
| Less expenditure: | |
| Advertising/public reporting| 54 |
| Audit fees | 8 |
| Accountancy fees | 10 |
| Portfolio management and advisory fees| 660 |
| Office administration | 237 |
| Office rental | 34 |
| Other administration costs| 119 |
| Trustees’ fees | 159 |
| Trustees’ expenses | 46 |
| |1,327 |
| Depreciation | 7 |
| Total operating costs| 1,334|
|
| Net surplus/(deficit) before grants| 15,866|
| Less grants | 2,987 |
| Net surplus/(deficit) after grants| 12,879|

Plus/(less) transfers:
| Income fluctuation reserve | (9,034)|
| Inflation and population growth reserve| (3,577)|
| |(12,611)|
|
| Net surplus/(deficit) after reserve transfers| 268 |

The accompanying notes form part of these financial statements.