Annual Report 2021 Grassroots Trust Limited - ANNUAL REPORT 1 April 2020 - 31 March 2021 1 Contents Chairman’s Report 1 The Dollar 3 Our Business 4 Board of Directors 5 Our Venues 6 Authorised Purpose 8 Our Stories Local Funding to Local Communities 9 Grant Funding Approved 1 April 2020 to 31 March 2021 12 Grant Funding Declined 1 April 2020 to 31 March 2021 26 Summary of Financial Statements & Auditors Report 38 Chairman’s Report Year ending emergency funding of up to $5,000.00 which would 31 March 2021 be available to applicants within days of making application. We were extremely proud of the fact that we were able to make emergency grants in the sum of $643,000.00 during June 2020. The 18th Year of our Grassroots is now the fourth largest Class 4 operator in New Zealand and are operating 59 venues and 862 gaming machines predominantly in the upper half of the operation finished North Island. strongly whilst still Our total funding to the Community for the year ended 31 March 2021 amounted to $15,640,801.26, with 895 feeling the effects of applications approved to 541 organisations. the pandemic. Grants Grassroots’ Strategy is to return 70% of our funding to The year commenced in lockdown which meant that our Sport and 30% to Community and Education. We take trading operation ceased for the first seven weeks of seriously our position in the market as a Community our financial year. Obviously, this presented significant Funder and in the year to 31 March 2021, 57% of our challenges financially for us and also our venue total funding was granted to Sport and 43% granted to operators. Community and Education. I am pleased to be able to report that we have come We pride ourselves on providing significant funding through that crisis in a strong position. This was to all our local communities. A snapshot of the varied possible through the hard work of our Management n a t u r e o f g r a n t f u n d i n g t o l o c a l b o d i e s , s c h o o l s , s p o r t s Contractor Maxserv, our venue operators and suppliers. and community groups is shown as follows: I thank you all for your support at this challenging time. • Counties Manukau Hockey Association We are regulated by the Department of Internal Affairs Grassroots Trust funded $100,000.00 toward the and their understanding and support through this time costs associated with resurfacing the hockey turf at was critical to our wellbeing and our thanks is extended Rosa Birch Park, Pukekohe. to the Department of Internal Affairs. • The Order of St John Northern Region Trust Board The Government was also supportive of the industry Grassroots Trust funded $292,210.35 toward and made legislative changes to help the industry purchasing an Ambulance to serve the West through these challenging times. The main legislative Auckland community and a major incident support change was the relaxing of the distribution regulation. vehicle and essential equipment for Whangarei and From 1 April 2021, we are again required to return a surrounding areas. minimum of 40% to the community. • The Order of St John Central Region Trust Board I turn now to the operations for the year ended 31 March Grassroots Trust funded $617,967.23 toward 2021. purchasing an Ambulance for Tokoroa, an Ambulance The most significant strategy we employed after for Te Kuiti and a major incident support vehicle and lockdown was the creation of an emergency grants essential equipment for Tauranga, Bay of Plenty and fund which enabled community groups to apply for surrounding areas. Grassroots Trust Limited - ANNUAL REPORT 1 April 2020 - 31 March 2021 1 • The Wish for Fish Charitable Trust We are particularly Grassroots Trust funded $150,000.00 toward the fit out of a purpose-built boat to provide individuals of proud of our place all ages with a physical or mental disability, an illness, financial hardship with access and opportunity to enjoy the ocean waters. in the market as • Tauranga Squash Rackets Club Incorporated the fourth largest Grassroots Trust funded $200,000.00 toward a facility extension at the Devoy Squash and Fitness Class 4 Operator in Centre. • Hamilton Boys High School New Zealand. Grassroots Trust funded $325,000.00 toward installation of an all-weather dome for cricket nets and warm up facilities for other sports. This facility Our Licence can also be used for functions and exams. We continue to be the first and only Society to be • Waikato District Council awarded a Best Practice Three Year Licence by Grassroots Trust funded $48,000.00 toward the the Department of Internal Affairs which was the construction of a cricket net practice facility at culmination of some very hard work by our team and our Centennial Park, Ngaruawahia where none had Management Company, Maxserv, who continue to be existed before. Industry Leaders in everything that they do. • Waikato Community Hospice Trust Our Growth Strategy Grassroots Trust funded $36,157 toward purchasing a passenger van to transport equipment to and 1. We aim to be first to market with technology and from patient’s homes in Hamilton, Cambridge and innovation. Ngaruawahia. 2. We are committed to creating a Culture of Care • Te Aroha and District Health Services Charitable across all venues and take our Harm Prevention and Trust Minimisation Programmes very seriously. Grassroots Trust funded $89,196.00 toward 3. We pride ourselves on our community engagement purchasing a passenger van with a wheelchair hoist. and have taken steps to ensure that we know the • Hawke’s Bay Regional Sports Park Trust communities in which we operate. We continue to Grassroots Trust funded $105,000.00 toward the have locally based Directors in our main areas of construction of an indoor community cricket and operation. boxing facility and operational expenses. 4. Outstanding service and support. • Parawai School 5. We continually review our model and look to operate Grassroots Trust funded $80,936.48 toward the in the most cost-effective manner, thereby returning purchase of a new vehicle, new devices for online maximum funding to the community. learning and shade sails for the playground. • New Zealand AIDS Foundation Grassroots Trust funded $52,975.00 toward the purchase of resources for HIV prevention and staging and production of the 2020 Big Gay Out. • Waikato Hospice Foundation Grassroots Trust funded $200,000.00 to purchase property to expand their operation. • The Dargaville Rugby and Sports Club Incorporated Grassroots Trust funded $43,468.39 toward installing a hot water system on-site, facility hire and purchasing uniforms, equipment and medical supplies. Grassroots Trust Limited - ANNUAL REPORT 1 April 2020 - 31 March 2021 2 The Industry Our Team Many Territorial Authorities have reviewed their Lastly, and most importantly I would like to thank the Gambling Venue Policies in the past 12 months, and people that make Grassroots a strong and vibrant more are continuing to undertake this process. organisation and that is firstly our Venue Operators who Grassroots Trust has been actively engaged with are the ones that manage our gaming activities on a day these reviews to achieve the best outcomes for the to day basis and implement our strategies and Harm Community. Prevention and Minimisation Programmes. It is a difficult job that you have, and we are grateful for your support The Class 4 Gaming Model receives a lot of public and all the efforts that you make on our behalf. This is criticism, however in my view it is the best model especially the case in this last year with the challenges for gambling in New Zealand. For every dollar that is of COVID-19. received by Grassroots Trust, 40% of that dollar is returned to the Government in the form of taxes, fees I would also like to thank my Board who go the extra and levies, and a minimum of 40% is returned to the mile heavily integrating themselves in their Local community in the form of Community Grants. There is Community and understanding the needs of those no such requirement on casino operators whose profits Communities. are in the main returned to their shareholders. In other My thanks is also extended to Tim Wood and his Team at jurisdictions such as some areas in Australia, there is Maxserv who as I have said are Industry Leaders. no requirement to return any money to the Community and, any money gambled online ends up offshore. We look forward to continuing our progress for the community in the coming year. Balanced against these factors is the seriousness in which we treat our role in Harm Prevention and Regards, Minimisation which is not a factor that is taken into account when people gamble online. I am satisfied our programmes in this regard are industry leading. MARTIN BRADLEY Chairman - Grassroots Trust Limited Grassroots Trust Limited - ANNUAL REPORT 1 April 2020 - 31 March 2021 3 The dollar Where does the money go? For every $1 spent at a gaming machine on average For every dollar put in to a gaming machine, 91 cents on 91% average is returned to the player in winnings. This is the RETURNED TO THE PLAYER highest rate of return of any form of legal gambling in New Zealand. At least 40% of revenue generated from gaming 2.7% machines and not returned to the player goes towards community initiatives in the form of grants. Every year, COMMUNITY pub and club gaming machines return around $300 milllion to the community through applications from around 13,000 groups.