General Section

Bay of Plenty Community Trust Incorporated

Community Trusts Act 1999

Bay of Plenty Community Trust Incorporated

Annual Report for the Year Ended 31 March 2008

Trust Particulars

The trust was initially incorporated on 5 August 1988 as the Trust Bank Bay of Plenty Community Trust in accordance with the provisions of the Trustee Banks Restructuring Act 1988. It continues under the provisions of the Community Trusts Act 1999. The purpose of the trust is to provide charitable, cultural, philanthropic, recreational and other benefits to Bay of Plenty communities. In April 1998, the name was changed to the Bay of Plenty Community Trust Inc. In March 2006, the trust adopted the name BayTrust for operational purposes.

Trustees: Ms P. Thompson (Chair), Mr F. Cookson, Ms T. J. Eggleton, Ms L. Hudson, Ms S. Kai Fong, Mr B. Kerr, Mr L. Martin J.P., Mrs P. J. McLeod M.N.Z.M., Mrs M. Ngatai Q.S.M., J.P., Ms A. Simpson, Ms A. von Tunzelmann, Mr R. Morrison.

Trust Manager: Mr B. W. Cronin, J.P.

Accountants: Staples Rodway, Tauranga.

Auditors: Ingham Mora, Tauranga.

Bankers: BNZ, Tauranga; Westpac, Tauranga.

Financial Advisers: Russell Investment Group Limited, Auckland.

Solicitors: Sharp Tudhope, Tauranga.

Tax Advisers: KPMG, Christchurch.

Chairperson’s Report for the Year Ended 31 March 2008

What a year! In the 12 months to 31 March 2008, BayTrust paid out over $4,000,000 in grants to essential Bay of Plenty causes, from arts, heritage and cultural groups to sports clubs, schools, hospices, churches and welfare groups, from Katikati to Turangi to Waihau Bay. It also paid a total of $83,543 to 34 people with Dillon Scholarships, supporting tertiary study for those with disabilities.

Highlights of BayTrust’s Year included:

• A joint venture partnership with the Rotorua-based Waiariki Institute of Technology to increase student numbers from low decile schools. BayTrust and Waiariki will each contribute $240,000 over three years.

• A grant of $250,000 to the Taupo District Council to assist with the upgrade of the Turangi Swimming Pool complex.

• A contribution of $100,000 to the inaugural BoP Searchlight Tattoo at Rotorua’s International Stadium on 23 and 24 February. With a total cast of around 2,000 and including 20 pipe and brass bands (four from overseas), it was a roaring success, despite some very dodgy, unseasonal weather.

• Almost $93,000 towards the establishment of an innovative Maintenance Engineering Learning Centre in Kawerau.

• $100,000 to Te Manu Toroa for the upgrade and expansion of its Te Akau Hauora at Papamoa.

• $120,000 to the Opotiki Heritage & Agricultural Society towards the Opotiki District Museum building.

CoachForce remains one of BayTrust’s prime investments. Since its inception as a Sport BoP/BayTrust partnership in 1997, the trust has contributed over $5.2m to this critically important programme encouraging more and better coaches in Bay sport. We congratulate Sport BoP and all those involved in CoachForce’s continuing success.

All that’s the good news. Investment returns are the bad news of course – BayTrust is not immune from the significant volatility and investment losses that have impacted world financial markets following the sub-prime mortgage crisis that first broke in the USA in mid-2007. BayTrust is well-advised by its asset consultants, the Russell Investment Group, and has its investments well-diversified, but despite this, sustained an investment loss of $5.855m (4.1%) over the year.

More positively, the trust has built up a good buffer (the “income fluctuation reserve”) against investment losses over the past few years, so is confident it can continue to make annual grants of around $4m – $5m p.a. into the future.

During the year under review, trustees Jeanette Knudsen (Tauranga) and Ray Sharp (Opotiki) retired and their places were taken by Linda Hudson (Whakatane) and Fred Cookson (Opotiki). Jeanette and Ray had both served two terms (eight years) with the trust (Ray six years as chair) and were passionate and fulsome contributors to all elements of BayTrust’s operations.

Our sincere thanks to all trustees and staff for their commitment to BayTrust over the past 12 months. Whilst there have been some quite challenging times, there have been some very rewarding ones too as the trust continues to help build, strengthen and enhance Bay communities.

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

Date: 9 July 2008.