2410 NEW ZEALAND GAZETTE, No. 86 4 AUGUST 2014

EASTERN AND CENTRAL COMMUNITY TRUST INC

GOVERNANCE

The Board of Trustees has been appointed by the Minister of Finance to govern the Trust. The Board establishes the Trust’s objectives, major strategies and the overall investment and donation policy framework. The Trust Manager has delegated authority within approved guidelines for the day to day management of the Trust. To assist in the process of Board governance, the Trustees have established three committees. Each committee has defined duties as listed. Their recommendations are reported to the Board for consideration. As required, the Board refers additional matters to the committees for consideration.

Executive – monitor investment performance, review fund managers’ performance, consider investment policy and strategy, monitor compliance and appraise the Trust Manager.

Audit & Risk – liaise with the external auditor, review the annual audit plan, review audit findings, monitor compliance to relevant statutory requirements, monitor, review and report performance and recommendations of the auditor.

Special Programmes – monitor, review and report on the performance of the Regional Sports Trusts, the Summer Reading Programme, the Maths is Fun Programme and any other special programmes.

Conflicts of interest, whether actual or potential, must be disclosed to the Board and minuted. In such circumstances a trustee is not entitled to enter discussion or vote. The Annual Report is published in the Gazette and the Trust’s website and a public meeting is held in August each year.

HISTORY OF THE TRUST

The Hawke’s Bay Savings Bank was established in 1962 and merged with the Manawatu-Wairarapa Savings Bank in 1972 to form the Eastern and Central Savings Bank. Over time the bank expanded to having more than 30 branches across the lower North Island.

When the government deregulated the banking industry in 1988 “Trust Bank Eastern & Central Community Trust Inc” was formed. The Trust was provided with shares in the Trust Bank Group to the value of $11.8 million to hold for the benefit of the communities within the defined region. Although the region is specifically defined it broadly covers the Gisborne District, Hawke’s Bay, Tararua, Wairarapa, Manawatu and Horowhenua, being the region of the original Eastern and Central Savings Bank.

In 1996 Westpac Bank purchased the Trust Bank Group and the Trust sold its shares for $109 million. The starting capital of the Trust was set at $90 million with $19 million set aside in reserves. The proceeds from the sale were invested into a diversified range of asset classes (fixed interest, equities, property and cash), within New Zealand and overseas. Once Trust Bank Group was sold the Trust dispensed with the “Trust Bank” title and is now known as the “Eastern & Central Community Trust Inc”.

The Trust has increased its capital by over 50% from $90 million to $140.3 million which more than covers inflation and population increases over this time, maintaining the real value of the Trust for future generations. It is the investment returns from these funds that has enabled the Trust to provide donations, and the Trust has provided nearly $100 million in donations to its communities since 1988.

The Trust comprises a Board of up to 12 Trustees, representing the various regions within the Trust area, who are appointed by the Minister of Finance. Terms of appointment are usually for four years and trustees may serve more than one term.