Chairperson’s Annual Report Financial Performance Donations The financial returns recorded for the year ended 31 March The Donations approved totalled $978,814 and this compares 2014 did not match the high level of the previous year. Early with $808,928 the previous year. Over the recent five year reports of the financial year had shown that results would period the Community Trust has allocated $5.338M fluctuate and returns would be at a lower level. averaging $1.068M per year. However the results were still positive for the Community The major disbursements during the year were Mid and Trust in that the equity moved from just under the $46M South Canterbury Schools $136,165, $100,000 each to the mark to $46.419M. Ashburton Museum & Historical Society and Friends of Alps 2 Ocean Inc, $75,000 to the Lake Tekapo Footbridge Society Total income from the investment account was $1.879M and Inc, $35,000 to the Mania-o-Roto Scout District, $30,000 movement in managed funds was $0.047M, these two each to Society of St Vincent de Paul Ashburton and Timaru, sources totalling $1.926M. The previous year total income $20,000 each to Barnabas Christian Trust, Sport Canterbury- had been $4.660M. Operating and direct investment Mid & South Canterbury, and the Timaru Indoor Bowls Assn. expenditure was in line with our budgeted guidelines and there were no marked deviations to impact on the financial The Board considered 133 applications this year compared to results. 142 the previous year. We canvassed applicants for comments on the application process during the year and The summary of Statement of Financial Performance, page 6 there were no requests for major change to the current of the report, shows donations approved at $0.979M system. The Board consider applications at their monthly compared to the previous year of $0.809M and net income meetings and are working towards an on-line application transferred to Capital Account of $0.482M compared to process which is currently being trialled. $3.443M. The Community Trust, when considering applications, are Note 2 of the Financial Statements gives a breakdown of the mindful of three criteria: capital fund and that a transfer was made from the general 1. The quality and/or significance of the application to meet reserve to the inflation reserve of $191,847, leaving a community needs general reserve balance of $1.816M. The general reserve 2. The donation budget which is determined by the income of was reinstated the previous year as a flow on from higher the previous year income returns. 3. The guardianship of an intergenerational funding base and the need to grow the fund for the future. During the year the Board authorised the commencement of a Global shares portfolio under the management of Elevation Capital and this was funded by the previously held units in a Trustees global weighted fund. This portfolio is listed as Offshore There was one change to the Board of Trustees during the Equity in the Financial Accounts and the total amount is year. The Associate Minister of Finance appointed Karen similar in both years – 2014 $11.9M, 2013 $11.8M. It was Simpson from Lake Tekapo to replace Nicola Hornsey who considered that the future prospects of our own portfolio was had completed two terms as a Trustee, a total of eight years better than that of a weighted fund. service. The Board appreciated the leadership and drive Having completed our budgeting exercise at the beginning of Nicola gave during her term of service. This included five 2014 it is anticipated that the Community Trust will record a years in the role of Chairperson and much input into steady year in the 2014/15 financial year. restructuring the Trust, along with hosting the New Zealand Combined Trusts Conference in Timaru. Karen Simpson’s Michael Chamberlain, MCA NZ Limited is our Investment term on the Community Trust commenced on 1st June 2013. Advisor and we acknowledge his input through the collation of our investment reports and advice to the formulation of During the year the Associate Minister invited the Board to our strategies, objectives and policies. Accounting services confirm our Board size preference. This had been a topic in a are provided by Paul Wolffenbuttel of H C Partners L P and Community Trusts survey conducted by the Department of this professional advice is greatly valued. Internal Affairs. Our response was that the Board size remain with the status quo (ten members) and this enabled regional Community House - Timaru location aspect to be covered. With a down-sizing of the Trustee numbers it would be more difficult to give coverage The capital cost of Community House is not part of our of the many communities that exist in the Community Trust’s investment funds as the property is provided as a support to territory. It was certainly not our belief that a smaller the South Canterbury welfare organisations. The purpose is number of Trustees would make for better governance to supply good quality subsidised office space to these decisions and a better working Board. organisations enabling them to fully function services to their clients. The Community Trust targets a financial return of marginally better than break-even as we do not expect to Staff sustain a negative result. The Board do acknowledge the input of our staff to the Community House is a well utilised community support hub smooth functioning of the Board. Their application to tasks with 21 tenants in occupation. This year Farmers Market was at hand ensures that the standards set by the Board are located to the Community House car park, creating an attained. The staff team is very ably led by Liz Shea, Chief activity there on Saturday mornings. The Board have Executive Officer. The team is Clive Callow, Community adopted a long term maintenance plan for the property and Relations Manager and Sally Marsh, Office Administrator. We this will commence in the 2014/15 year. do appreciate their dedication and efforts to have the timely reports and material available for the Trustee’s consideration. We acknowledge input to Community House by the Timaru District Council’s Community Development Committee donation of $10,000 which is put towards the overall running 25th Anniversary costs. This donation definitely assists in keeping rentals to the non-profit organisations who are tenants at the lowest The year 2013 was the 25th Anniversary of possible level. the Community Trust and a decision was made to mark this milestone by commissioning Carol Angland to write the history of the Community Trust’s first 25 years. The completed book should be published towards the end of this year. Peter O’Leary Chairperson Financial Statements Summary Statement of Financial Performance for Summary Statement of Financial Position the year ended 31 March 2014 as at 31 March 2014 2014 2013 Trust Capital $ $ 2014 2013 Capital Fund 46,419,384 45,937,690 $ $ Total Income 2,031,476 2,717,262 Represented by: Movement in Managed Funds 46,533 2,092,701 Westpac Trust: Current Account 67,941 58,430 Less: Total Expenditure (630,136) (572,966) Accounts receivable 68,760 101,801 Less: Donations approved (978,814) (808,928) GST Refund Due 4,863 3,266 Plus: Donations not required 12,635 15,295 Total Current Assets 141,564 163,497 Surplus /(Deficit) Transferred to the Trust Fund 481,694 3,443,364 Less: Current Liabilities Accounts Payable 68,869 70,072 Donations Approved Not Yet Paid 551,043 708,796 Holiday Pay Accrural 5,121 4,185 Summary Statement of Movements in Equity Total Current Liabilities 625,033 783,053 Working Capital (483,469) (619,556) for the year ended 31 March 2014 Add Non Current Assets Fixed Assets 2,242,427 2,252,976 2014 2013 Managed Funds $ $ NZ/Aus Property 3,242,400 3,399,572 Opening Equity 45,937,690 42,494,326 NZ Cash & Bonds 12,314,609 12,021,472 Nett Surplus/(Loss) for year 481,694 3,443,364 NZ/Aus Equity 9,106,944 9,464,946 Closing Equity 46,419,384 45,937,690 Offshore Cash & Bonds 8,109,378 7,642,551 Offshore Equity 11,862,083 11,750,715 44,635,413 44,279,256 Units: Te Kete Putea LP 25,013 25,013 Summary Statement of Cash Flows 46,902,853 46,557,245 for the year ended 31 March 2014 Nett Assets 46,419,384 45,937,690 2014 2013 $ $ The full financial report was approved and authorised for Nett Cash Flows from Operating Activities 9,512 37,868 issue by the Trustees of The Community Trust of Mid & South Canterbury Inc. on 28th July 2014. Nett Cash Flows from Investing Activities - (26,102) Increase/(Decrease ) in Cash held 9,512 11,766 Anyone seeking the full financial statements is encouraged to Add Opening Cash 1 April 2013 58,430 46,664 access them online at the Community Trust’s website Cash as at 31 March 2014 67,942 58,430 www.comtrust.org.nz or request a copy from the Comprised of: Community Trust of Mid & South Canterbury, Cash at Bank 67,942 58,430 Community House, 27 Strathallan St, PO Box 983, Timaru. Freephone: 0800672287 Phone: (03) 687 7360 Email: [email protected] NOTES TO THE SUMMARY FINANCIAL STATEMENTS FOR THE YEAR REPORT OF THE INDEPENDENT AUDITOR ON THE SUMMARY FINANCIAL ENDED 31 MARCH 2014 STATEMENTS The Community Trust of Mid & South Canterbury Inc. is a Charitable Trust incorporated To the Members of The Community Trust of Mid & South Canterbury Incorporated under the Trustee Banks Restructuring Act 1988.