Notice is hereby given that a Meeting of the Milford Community Trust will be held on:

 

Date:                            

Time:

Meeting Room:

Venue:

 

Friday, 6 December 2019

5.00pm

Milford Sound Tourism
147-157 Milford Sound Highway
Milford
Milford Sound

 

Milford Community Trust Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Ebel Kremer

 

Trustees

Rosco Gaudin

 

 

Tim Holland

 

 

Brad Johnstone

 

 

Jason Steele

 

 

IN ATTENDANCE

 

Committee Advisor/Customer Support Partner

Jenny Labruyère

Community Partnership Leader

Simon Moran

 

 

Contact Telephone: 0800 732 732

Postal Address: PO Box 903, Invercargill 9840

Email: emailsdc@southlanddc.govt.nz

Website: www.southlanddc.govt.nz

 

Full agendas are available on Council’s Website

www.southlanddc.govt.nz

 

 

 


 


Milford Community Trust

06 December 2019

 

TABLE OF CONTENTS

ITEM                                                                                                                                                                                  PAGE

Procedural

1             Apologies                                                                                                                                                                5

2             Leave of absence                                                                                                                                                5

3             Conflict of Interest                                                                                                                                             5

4             Public Forum                                                                                                                                                         5

5             Extraordinary/Urgent Items                                                                                                                        5

6             Confirmation of Minutes                                                                                                                               6

Reports

4.1         Draft Amended Financial Delegations Policy                                                                                 11

4.2         Audit New Zealand's Management Report to 30 June 2019                                                   19

4.3         Financial Report to 31 October 2019                                                                                                    39

4.4         Draft Statement of Intent 2020 - 2023                                                                                                 45   


1             Apologies

 

At the close of the agenda no apologies had been received.

 

2             Leave of absence

 

At the close of the agenda no requests for leave of absence had been received.

 

3             Conflict of Interest

 

Committee Members are reminded of the need to be vigilant to stand aside from decision-making when a conflict arises between their role as a member and any private or other external interest they might have.

 

4             Public Forum

Notification to speak is required by 5pm at least two days before the meeting. Further information is available on www.southlanddc.govt.nz or phoning 0800 732 732.

 

5             Extraordinary/Urgent Items

To consider, and if thought fit, to pass a resolution to permit the committee to consider any further items which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded.

Such resolution is required to be made pursuant to Section 46A(7) of the Local Government Official Information and Meetings Act 1987, and the Chairperson must advise:

(i)            the reason why the item was not on the Agenda, and

(ii)          the reason why the discussion of this item cannot be delayed until a subsequent meeting.

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a)           that item may be discussed at that meeting if-

(i)            that item is a minor matter relating to the general business of the local authority; and

(ii)           the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b)          no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

 

6             Confirmation of Minutes

3.1             Meeting minutes of Milford Community Trust, 26 September 2019


 

 

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Milford Community Trust held in the Te Anau Library Meeting Room, 24 Milford Crescent , Te Anau on Thursday, 26 September 2019 at 9am.

 

present

 

Chairperson

Ebel Kremer

 

Trustees

Rosco Gaudin

 

 

Tim Holland

 

 

Jason Steele

 

 

 

 

 

 

APOLOGIES

 

Brad Johnstone

 

 

 

IN ATTENDANCE

 

Committee Advisor

Rose Knowles

Community Partnership Leader

Simon Moran

 


1             Apologies

 

                An apology for non-attendance was lodged by Trustee Brad Johnstone.

 

                Moved Trustee Holland, seconded Trustee Holland and resolved:

 

                That the Milford Community Trust accepts the apology for non-attendance lodged by Trustee Johnston.

 

 

2             Leave of absence

 

There were no requests for leave of absence.

 

3             Conflict of Interest

 

There were no conflicts of interest declared.

 

4             Public Forum

 

There were no public to speak in public forum.

 

5             Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

6             Confirmation of Minutes

 

Resolution

Moved Trustee Holland, seconded Trustee Gaudin and resolved:

That the minutes of the Milford Community Trust meeting held on 14 June 2019 be confirmed as a true and correct record.

 

Reports

 

 

4.1

Milford Community Trust Performance Report 2018/2019

Record No: R/19/9/20231

 

Community Partnership Leader, Simon Moran presented this report.

 

 

1          Mr Moran advised that the Milford Community Trust Performance Report for the year ended 30 June 2019 is provided for adopted.

6          Mr Moran added that an updated Performance Report was also attached to the report.

7          Mr Moran tabled the draft audit opinion, and representation letter at the meeting which was signed by the Chair and one other Trustee., being Trustee Steele.

8          Mr Moran sought the consideration of the Trustees on the Performance Report for the ended 30 June 2019 as presented for adoption.  

 

Resolution

Moved Trustee Holland, seconded Trustee Gaudin and resolved:

That the Milford Community Trust:

a)            Receives the report titled “Milford Community Trust Performance Report 2018/2019” dated 19 September 2019.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Adopts the Milford Community Trust Performance Report for the year ended 30 June 2019.

 

e)            Agrees that the audited performance report be delivered to shareholders and be made available to the public by 30 September 2019.

 

f)             Delegates authority to the Chairman and Trustee Steele to sign the letter of representation to Audit New Zealand on behalf of the Trust.

 

 

4.2

Financial Report to 31 August 2019

Record No: R/19/9/20694

 

Community Partnership Leader, Simon Moran presented this report.

 

Mr Moran advised that the financial report for the period ended31 August 2019, provided an updated financial position of the Trust which is showing a strong cash position and invested funds in a term deposit.

 

Resolution

Moved Chairman Kremer, seconded Trustee Steele

That the Milford Community Trust, and resolved

a)            Receives the report titled “Financial Report to 31 August 2019” dated 19 September 2019.

 

 

 

The meeting concluded at 9.40am                       CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Milford Community Trust HELD ON THURSDAY 26 SEPTEMBER 2019.

 

 

 

DATE:...........................................................................................

 

 

 

CHAIRPERSON:........................................................................

 


Milford Community Trust

06 December 2019

 

Draft Amended Financial Delegations Policy

Record No:             R/19/11/26734

Author:                      Brie Lepper, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1    This report presents the amended draft Financial Delegations Policy for the Trust’s consideration.

2    The only change proposed is the inclusion in the policy statements for Southland District Finance staff to act on behalf of the Trust in matters regarding the Inland Revenue Department (IRD), Bank of New Zealand (BNZ) and the Charities Services in order to carry out their required duties.

 

Background

3    Southland District Council’s Finance team has recently been contacted by IRD regarding who can access their online portal for Milford Community Trust. IRD requires the Trust to appoint an “Executive Office Holder” to act on the trust behalf regarding all matters to do with IRD. This has prompted staff to ensure all organisations that staff are in regular dealings with are included in the delegation policy.

4    The Trust’s Financial Delegations policy has been amended to include policy statements regarding dealings with Inland Revenue, BNZ and the Charities Services. These are the only changes proposed to the existing policy (adopted on 14 June 2019).

5    In the draft policy, additional commentary has been included within subsection 5.4, which proposes council staff have the authority to administer the Trust’s bank accounts, along with authorising payments.

6    The inclusion of subsection 5.5 proposes that the Chief Financial Officer, Finance Manager, Financial Accountant, Senior Management Accountant and the designated Finance Officer to have the authority to be appointed as executive office holders to act on behalf of the Trust with the IRD.

7    The proposed inclusion of subsection 5.6, proposes that the Community Partnership Leader and the designated Finance Officer have authorisation to engage with the Charities Services on behalf of the Trust for matters regarding the Trust’s Charity status. 

8    A copy of the amended draft policy is attached (Attachment A) for your consideration, proposed amendments are highlighted in yellow.

 

 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Draft Amended Financial Delegations Policy” dated 27 November 2019.

 

b)           Determines that this matter or decision be recognised as not significant in terms of Section 76 of the Local Government Act 2002.

 

c)            Determines that it has complied with the decision-making provisions of the Local Government Act 2002 to the extent necessary in relation to this decision; and in accordance with Section 79 of the Act determines that it does not require further information, further assessment of options or further analysis of costs and benefits or advantages and disadvantages prior to making a decision on this matter.

 

d)           Adopts the draft amended Financial Delegations Policy (Attachment A), subject to any amendments agreed at the meeting.

 

e)            Acknowledges that the current Southland District Council staff, as at 6 December 2019 that hold the specified positions are:

·              Chief Financial Officer – Anne Robson

·              Finance Manager – Vacant

·              Financial Accountant – Sheree Marrah

·              Senior Management Accountant – Susan McNamara

·              Management Accountant – Joanie Nel

·              Designated Finance Officer – Brie Lepper

·              Community Partnership Leader – Simon Moran

               

 

 

 

 

 

 

Attachments

a             Draft Amended Milford Community Trust - Financial Delegations Policy December 2019    

 


Milford Community Trust

06 December 2019

 

 

 

 

 

 

 

 

 

 

 

Milford Community Trust

 

 

 

Policy - Financial Delegations - DRAFT

 

 

Effective from 6 December 2019

 


Milford Community Trust

06 December 2019

 

1.   BACKGROUND

 

The Milford Community Trust Financial Delegations Policy provides guidelines for who can authorise expenditure and promotes good financial record keeping.
This helps prevent fraud and financial mismanagement and allows the Trust to make the best use of available funds.

 

Section 5(b) of the deed of the Milford Community Trust provides that the Trust Fund shall be used for services and activities necessary for the promotion and advancement of all charitable, recreational purposes and all other purposes beneficial to the Milford Community as a whole.

 

2.   OBJECTIVES

 

This policy aims to ensure that funds are directed at the services and activities outlined under Section 5(b) of the Trust Deed.  The policy is aligned with the process of budget setting, which occurs during the Statement of Intent process.
Budget setting is a key financial control measure.  The underlying assumption is that budgeted expenditure is consistent with Section 5(b) of the Trust Deed.

 

The policy also seeks to formalise the current financial control procedures and ensure that appropriate financial records be maintained.

 

3.   SCOPE     

 

The Milford Community Trust Financial Delegations Policy applies to Trustees and all employees of the Milford Community Trust.

 

The Financial Delegations Policy also applies to support agency staff and contractors who are part of the Trust resources and to Southland District Council (SDC) staff working under the agreement for administration services and Trust staff.

 

4.   DEFINITIONS

 

Term

Definition

Budgeted Expenditure

All operational and project expenditure for the current year as budgeted in the latest approves Milford Community Trust Statement of Intent.

The Council / SDC

Southland District Council.

Financial Delegation

Formal authority and responsibility provided in relation to financial expenditure and associated processes, including documentation and record keeping.

Milford Community Trust / The Trust

A charitable trust for the benefit of the residents of Milford, the holders of concessions from the Crown operating at Milford and Iwi.

Unbudgeted Expenditure

All expenditure incurred by the Trust outside of that approved in the latest Milford Community Trust Statement of Intent.

The Schedule

The Financial Delegations Schedule attached to this policy.

The Trust Fund

The Milford Community Trust Fund.

 

5.   POLICY STATEMENTS

 

5.1       Powers and limitations

 

The deed of the Milford Community Trust broadly sets out the powers and limitations of Trustees in relation to financial matters.

 

5.2       Approvals and Delegations

 

Budgeted expenditure

The authority to approve budgeted expenditure incurred by the Trust is delegated by the Schedule of Financial Delegations.

 

Payment can only be made following approval from one individual with the appropriate delegated authority.  This applies to all budgeted expenditure.
Approval is provided by signing and dating each invoice prior to payment.

 

Unbudgeted expenditure

The authority to approve unbudgeted expenditure incurred by the Trust is delegated by the Schedule of Financial Delegations.

 

Payment can only be made following approval from one individual with the appropriate unbudgeted expenditure delegated authority.  Approval is provided by signing and dating each invoice prior to payment.

 

Where unbudgeted expenditure exceeds the maximum level provided in the Schedule of Financial Delegations, there are two options for approval.  Approval can be granted either:

 

·              By a resolution passed at a meeting of the trust AND subsequent authorisation from the Community Partnership Leader ; OR

·              Approval from two people who hold the office of Chairperson or Trustee.

 

5.3       Personal Costs

 

All payments/reimbursements for personal expenditure (including meals, accommodation, training, trustee fees etc) require approval from the Community Partnership Leader or Chairperson.

 

Reimbursements to the Community Partnership Leader require approval from the Trust Chairperson or a Trustee.

 

Reimbursements to the Trust Chairperson require approval from the Community Partnership Leader or a Trustee.

 

Financial Processing and Documentation

 

Section 12(a) of the deed of the Milford Community Trust requires that the Trustees shall ensure that full and correct amounts of all the financial transactions are kept.

 

All approved transactions will be process by the designated officer from the Southland District Council’s Finance Team.  The designated Finance Officer will also prepare the management accounts and Annual Report.

 

The designated Finance Officer is responsible for:

 

·              Reviewing all payments to ensure compliance with the procedures stated in this policy; and

·              Ensuring appropriate records are kept, including:

-     Documentation of compliance with this policy.

-     Monthly financial reports detailing budgeted vs actual expenditure.

 

5.4 Bank Authorisation

 

All financial transactions processed by the Finance Officer require authorisation by two authorised signatories from Southland District Council.

         

The authorised signatories from Southland District Council are:

 

·              Chief Financial Officer

·              Finance Manager

·              Financial Accountant

·              Senior Management Accountant

·              Management Accountant(s).

 

The staff noted above, as well as the designated Finance Officer, also have authority to act on behalf of the Trust in administering all Trust bank accounts.

 

5.5 Inland Revenue Department

 

Inland Revenue require the Trust to appoint an executive office holder(s) to act on the Trust’s behalf with Inland Revenue. This includes making enquires, receiving statements, financial authority and registering for and managing a myIR secure online service for the Trust.

         

The authorised executive office holders from Southland District Council are:

 

·              Chief Financial Officer

·              Finance Manager

·              Financial Accountant

·              Senior Management Accountant

·              Designated Finance Officer

 

5.6 Charities Services

 

Milford Community Trust is required to complete an annual charity return in order to maintain their charities registration status. 

         

The authorised personnel from Southland District Council that can engage with the Charities Services (a part of the Department of Internal affairs) are:

 

·              Community Partnership Leader

·              Designated Finance Officer

 

5.7 Compliance and Breaches

 

Any transactions in breach of this policy shall be investigated in accordance with the Milford Community Trust - Suspected Fraud Policy. Breaches may result in disciplinary action or prosecution.

 

6.   ASSOCIATED DOCUMENTS

 

·              Milford Community Trust - Statement of Intent

·              Milford Community Trust - Trust Deed

·              Milford Community Trust - Suspected Fraud Policy.


Milford Community Trust

06 December 2019

 

7.       SCHEDULE OF FINANCIAL DELEGATIONS

 

Position

Approve invoices relating to Budgeted Expenditure (GST exclusive)

Approve invoices relating to Unbudgeted Expenditure (GST exclusive)

Authority to make electronic bank payments, direct debits, inter account transfers, GST payments subject to payment being duly approved

Community Partnership Leader

$5,000

$500

Nil

Chairperson

No Limit

$1,000

Nil

Trustees

$10,000

Nil

Nil

SDC Chief Financial Officer

Nil

Nil

No Limit

SDC Finance Manager

Nil

Nil

No Limit

SDC Financial Accountant

Nil

Nil

No Limit

SDC Senior Management Accountant

Nil

Nil

No Limit

SDC Management Accountant

Nil

Nil

No Limit

 

 


Milford Community Trust

06 December 2019

 

Audit New Zealand's Management Report to 30 June 2019

Record No:             R/19/9/21670

Author:                      Brie Lepper, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Summary

1        As part of the audit process, Audit New Zealand provides Milford Community Trust with a report on its audit findings at the conclusion of the audit which outline the work that was performed and any recommended areas for improvement.

2        The management report (report) received from Audit New Zealand (Audit NZ) in relation to the performance report audit for the year ended 30 June 2019, is attached in appendix 1. 

3        A draft of this report was tabled at the Trust’s September 2019 meeting, however it did not include any comments from management on the recommendations made.  Management comments have now been included in the version attached.

4        The report does not identify any significant issues in the systems and process that support the activities of Milford Community Trust.  However, it has identified some areas for improvement as noted below.

 

Recommendation 1: That the Trustees and key management personnel disclose all interests in the register and ensure that this is updated when necessary.

Management comment: Staff will seek disclosure of interests from Trustees on a regular basis in the future.

Recommendation 2: That the Trustees implement a sensitive expenditure policy to cover the Office of the Auditor General best practice principles.

Management comment: Staff will work with the Trust to develop this policy in the coming months.

Recommendation 3: That steps are taken to appoint two new Trustees during the 2020 financial year or the Trust deed is amended.

Management comment: The Trust are aware that they currently have insufficient trustees, however they are finding it difficult to find eligible candidates. This will continue to be an ongoing focus of the Trust.

Recommendation 4: That the Trust look at their policy around Trustees’ fees and amend the trust deed if Trustee fees will not be claimed, or Trustees should claim for actual expenditure incurred.

Management Comment: Recommendation noted, Trustees will give consideration to this matter, however note that no changes can be made to the Trust Deed until all trustee positions have been filled. Staff will provide Trustees some guidance around the options and implications of changing trustee fees methodology in the coming months.

 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Audit New Zealand's Management Report to 30 June 2019” dated 29 November 2019.

 

Attachments

a             Report to the Board on the audit of Milford Community Trust for the year ended 30 June 2019    

 


Milford Community Trust

06 December 2019

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Milford Community Trust

06 December 2019

 

Financial Report to 31 October 2019

Record No:             R/19/11/26223

Author:                      Brie Lepper, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        This financial report provides the Trustees with a statement of financial performance and financial position of the Trust for the period 1 July 2019 to 31 October 2019.

 

Commentary

Financial Performance

2        The concessionaire’s income represents the first two quarters. The second quarter invoicing was completed in October with payments expected to be received by 20 November 2019.

3        The majority of expenses to date relate to chairman fees, trustee fees, legal fees and insurance.  Legal fees relate to costs associated with discussions around the trust deed.  Insurance costs are for the placement of the following policies for the period 1 July 2019 to 30 June 2020: trustees liability, statutory liability and public liability insurance.

Financial Position

4        The Milford Community Trust (MCT) continues to have a strong cash position. $17,787 is held in the cheque/savings accounts, the savings account receives interest at a rate of 0.1% p.a. 

5        Surplus funds are transferred to the savings account, or invested as appropriate, on a regular basis.

6        Additionally, $325,000 is invested in term deposits as outlined in the table below:

Bank

Amount

Interest Rate

Term

Maturity Date

Total Expected Interest

BNZ

$30,000

2.67%

120 days

15/11/2019

$263

BNZ

$45,000

3.30%

180 days

11/12/2019

$732

BNZ

$120,000

3.18%

215 days

24/02/2020

$2,248

BNZ

$80,000

3.12%

271 days

9/03/2020

$1,853

BNZ

$50,000

2.63%

186 days

28/04/2020

$670

Total:

$325,000

 

 

 

$5,767

 

Concessionaries Contributions

7        As you are aware we have been indicating for a number of months the Trust’s intention to update the data used to calculate the concessionaire contribution percentage. The data required is passenger numbers, staff bedrooms, staff numbers, square meterage and improvement value. At this time as we are still awaiting information from DOC, therefore we have issued the second quarter concessionaire invoices using the same percentages as 2018/2019.

8       

 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Financial Report to 31 October 2019” dated 27 November 2019.

 

 

 

Attachments

There are no attachments for this report.  

 


Milford Community Trust

06 December 2019

 

Draft Statement of Intent 2020 - 2023

Record No:             R/19/11/26461

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

 

Purpose

1        The trust is required by legislation to prepare a Statement of Intent annually covering three years.    

Commentary

2        Included in the draft Statement of Intent is the planned activities/services of the trust for the 2020/2021, 2021/2022 and 2022/2023 financial years for review by trustees.

3        The prospective financial statements outline the trust’s forecast financial performance and position over the three financial years.

Adjustments

4        In preparing this report, the following forecast adjustments have been made for the 2019/2020 financial year:

·     insurance expenditure has been adjusted to the 2019/2020 September actual invoice amount

·     capital costs for the recreation centre of $50,000 are expected in 2019/2020, subject to formal approval of the commencement of the project. The majority of the capital cost is anticipated to occur in 2020/2021.

Assumptions

5        In preparing the draft prospective financial statements for 2020/2021, 2021/2022 and 2022/2023 the following assumptions have been made:

·     concessionaire’s fees will remain constant from 2019/2020 to 2022/2023

·     accommodation for auditors will decrease as audit fieldwork is anticipated to be undertaken at Audit NZ’s office

·     audit fees are set for a three year period and have been budgeted assuming the fees will increase

·     the recreational pad has been depreciated at 3% per annum on a diminishing value basis, representing a useful life of approximately 33 years. The recreation centre is proposed to be depreciated at 2% from 1 July 2021

·     repayments of the term loan will commence from 1 July 2021, with an assumed interest rate of 4.65% (SDC’s proposed interest rate for 2021/2022)

·     trustee fees has been budgeted, assuming all trustees claim all meeting fees

·     no inflation has been applied to any costs other than insurance.  Insurance has been inflated at a rate of 2% per annum.

 

For discussion

6        In reviewing the prospective financial statements, staff recommend trustees discuss and consider the following items:

·     whether or not the concession fees should continue to be budgeted to increase by 10% year on year given the capital and operational expenses identified in this SOI

·     estimated operational costs have not been incorporated for the recreational centre as the responsibility surrounding the ongoing maintenance (such as electricity, internet, cleaning, repairs and maintenance) and management of the building is still ongoing. It would be anticipated that monthly expenditure would occur on completion of the project in late 2020/2021

·     the draft SOI should be updated to reflect any decisions made relating to the recreation centre project and any anticipated changes (including cost, funding, timing and ongoing management).

 

Next Step

7        Staff will amend the draft Statement of Intent based on the trust’s discussions and present the final draft Statement of Intent at the trust’s February meeting for approval.

 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Draft Statement of Intent 2020 - 2023” dated 26 November 2019.

 

b)           Request staff amend the draft Statement of Intent to reflect the outcome of the trust’s discussions at this meeting and present the final draft Statement of Intent to the next meeting for approval.

 

 

Attachments

a             DRAFT - Milford Community Trust Statement of Intent 2020-2023    

 


Milford Community Trust

06 December 2019

 

 

 

 

 

MILFORD COMMUNITY TRUST

 

 

DRAFT

 

STATEMENT OF INTENT

2020 - 2023


Milford Community Trust

06 December 2019

 

STATEMENT OF INTENT

 

1.       Introduction

 

The Milford Community Trust was established in 2007 by the Southland District Council and the Department of Conservation with the assistance of Environment Southland for the purposes of providing leadership and governance for the Milford community.

 

The Trust Deed defines Milford as the developed area of land and adjacent coastal marine area at the end of State Highway 94 at the head of Milford Sound.  It defines the Milford community as being the residents of Milford, the holders of concessions from the Crown operating at Milford and Iwi.

 

The purpose of this Statement of Intent (SOI) is to:

 

§   Set out the proposed activities of the Trust.

§   Provide an opportunity for stakeholders to influence the direction of the organisation.

§   Provide a basis for accountability of the Trustees to their stakeholders for the performance of the organisation.

 

This Statement of Intent covers the three years from 1 July 2020 to 30 June 2023.  The statement is updated annually.

 

 

2.       Objectives of the Trust

 

The objectives of the Trust are:

 

(a)        To manage and carry out services and undertake leadership, planning and advocacy for the general benefit of the Milford community so as to ensure as far as possible that the infrastructure of the community and its sense of identity, viability and wellbeing are maintained and enhanced.

 

(b)        To liaise with and communicate with all individuals, organisations, groups and other parties with interests in the Milford community for all purposes which are beneficial to the community.

 

(c)        To represent the interests of the Milford community to ensure that the natural environments and outstanding values of the Milford Sound area are safeguarded and protected for all residents and visitors to the area. 

 

(d)        To monitor and maintain an overview of all activities and services provided within the Milford community. 

 

(e)        To consider and report on all matters either referred to and/or delegated to it from time to time by the Department of Conservation and the Southland District Council and on any matter of interest or concern to the Milford community. 

 


 

(f)        To access, use or invest funds and enter into arrangements, contracts and other agreements upon such securities or in such manner and upon such terms and conditions that the Trustees deem suitable for the purpose of furthering the objects and purposes of the Trust. 

 

(g)        To carry out such other lawful activities which are incidental or conducive to attaining the objects and purposes of the Trust. 

 

3.         Statement on the Trust’s Approach to Governance

 

Establishment

 

The Milford Community Trust was established in 2007 following a process of consultation with residents, agencies and businesses with interests in Milford in accordance with the special consultation process set out in the Local Government Act 2002.  The inaugural meeting of the Trust was held on 18 April 2007.

 

The Trust was incorporated under the Charitable Trusts Act 1957 on 18 May 2007.  The Charities Commission has approved the Trust as being exempt for tax purposes.

 

The Trust reports to the Southland District Council.

 

Trust Structure

 

In accordance with Section 9 of the Trust Deed, the Trust is governed by a board of seven Trustees.  Current representatives from stakeholder groups are shown in the table below:

 

Designation

Name

Term Expires

30 June

Mararoa-Waimea Ward Councillor, ex-officio appointment

Interim Chair

Ebel Kremer

 

Oct 2022

 

Dec 2020[BL1] 

Milford Community Association elected representative

 

Brad Johnstone

2020

Milford Community appointee

Tim Holland

2020

 

Milford Community appointee

Jason Steele

2022

 

Milford Community appointee

Rosco Gaudin

2023[BL2] 

 

Milford Community appointee

Vacant

 

 

 

Trust Operations

 

The Trust Deed sets out the way in which business of the Trust is to be conducted.  A strong driver is that the local Milford community should determine its own priorities and agree on the funding for these.  The Trust strives to regularly review its performance and to be open and accountable to the community through public meetings.  The Trustees also undertake to meet the regulatory and stakeholder requirements for governance, reporting and planning, particularly the local government reporting requirements and recognition of the National Park and World Heritage Area status of the Milford Sound Piopiotahi area.

 

Resources Available to the Trust

 

Standing Orders, a Code of Conduct for Trustees and administrative support are available from Southland District Council.

 

Significant Policies

 

Financial Delegations Policy

Suspected Fraud Policy

 

Where appropriate, further policy guidance is obtained from relevant council and other statutory authority policy and this will be reviewed as necessary.

 

4.         The Nature and Scope of the Activities to be Undertaken

 

Vision

 

The Trust’s vision is: 

 

The long-term sustainability of Milford Sound Piopiotahi, with a community focus.

 

Strategic Goals

 

The primary goals of the Trust are to:

§   Provide leadership and governance for the Milford community in Milford Sound Piopiotahi.

§   Advocate for the general benefit of the Milford community.

§   Coordinate and communicate with all parties having interests in Milford Sound Piopiotahi[SM3] .

 

Within the over-arching vision and strategic goals, the more specific focus areas for
2020 – 2023 are:

 

Planning:

§   Determine the future direction of the Trust.

§   Advocating for better planning to address specific issues: highway safety, control of illegal camping, toilet facilities, community facilities, coordinated emergency response, and recognition of the area’s World Heritage status.[SM4] 

 

Communication:

§   Communicate the roles of the Trust and other authorities more clearly to the Milford community.[SM5] 

§   Affirm the Trust role as a voice for the Milford community.[SM6] 

§   Maintain closer relationships with Milford infrastructure providers.[SM7] 

§   Provide clear information to concessionaires regarding intentions and implementation of Trust policies.

§   Consult with the community and concessionaires to develop a strategic project plan for the Trust to deliver for the benefit of the community.

 

Advocacy:

 

§   Advocate on behalf of the Milford community to central government, Environment Southland, Department of Conservation, Southland District Council, Iwi and other authorities.[SM8] 

 

Planned Activities/Services

 

2020/21:

§ Advocate and assist with other organisations for strategic improvements in community planning in Milford Sound.

§ Provide funding for medical support services and facilities.

§ Review of the Trust and charging mechanism with stakeholders including concessionaires.

§ Facilitate the construction of the Milford recreation centre if the project gets approval.

§ Advocate the continuation of maintaining beautification and roading issues within the Village and Deepwater Basin.

§ Assist the Milford Community Association with the on-going development of the Cleddau Village Recreation Area to accommodate the community centre. 

§ Advocate with other organisations for public toilets and shelter at the airport and a walking track to the Lodge. 

 

2021/22:  

§ Advocate and assist with other organisations for strategic improvements in community planning in Milford Sound.

§ Provide funding for medical support services and facilities.

§ Advocate the continuation of maintaining beautification and roading within the village.

2022/23:

§ Advocate and assist with other organisations for strategic improvements in community planning in Milford Sound.

§ Provide funding for medical support services and facilities.

§ Advocate the continuation of maintaining beautification and roading within the village.

 

5.         Ratio of Total Assets:  Equity

 

Total assets are defined to include cash, investment and bank balances, accounts receivable, investments, prepayments, fixed assets (net of accumulated depreciation), intangible assets (net of accumulated amortisation), loans (none), etc. 

 

Total equity is defined to include accumulated funds and retained earnings. 

 

6.         Significant Accounting Policies

 

The following accounting policies have been adopted by the Trust.

 

Revenue Recognition

Concessionaires Fees

Revenue is recorded when the fee is due to be received.

Donated Assets

Revenue from donated assets is recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the value of the asset is readily obtainable and significant.

Interest

Interest revenue is recorded as it is earned during the year.

 

Debtors

Debtors are initially recorded at the amount owed. When it is likely the amount owed (or some portion) will not be collected, a provision for impairment and the loss is recorded as a bad debt expense. Debtors are shown as GST inclusive.

 

Bank Accounts and Cash

Bank accounts and cash comprise cash on hand, cheque or savings accounts, and deposits held at call with banks.

 

Term Deposits

Term Deposits with Banks are initially recorded at the amount paid. If it appears that the carrying amount of the investment will not be recovered, it is written down to the expected recoverable amount.

 

Creditors and Accrued Expenses

Creditors and accrued expenses are measured at the amount owed.

 

Property, Plant and Equipment

Property, plant and equipment is recorded at cost, less accumulated depreciation and impairment losses.

 

Donated assets are recognised upon receipt of the asset if the asset has a useful life of 12 months or more, and the value of the asset is readily obtainable and significant. Significant donated assets for which current values are not readily obtainable are not recognised.

 

For an asset to be sold, the asset is impaired if the market price for an equivalent asset falls below its carrying amount.

 

For an asset to be used by the Trust, the asset is impaired if the value to the Trust in using the asset falls below the carrying amount of the asset.

 

Depreciation is provided on a straight line basis that will write off the cost of the assets over their useful lives. This is calculated using the following rates:

 

Recreational Pad           3%    Diminishing Line

Buildings                       2%   Straight Line

 

Income Tax

The Trust is exempt from income tax as it is a Charitable Trust registered with the Charities Commission.

 

Loans

Loans are recognised at the amount borrowed from the lender, less any repayments made.

 

Budget Figures

The budget figures are derived from the Statement of Intent as approved by the Trustees at the beginning of the financial year.  The budget figures have been prepared in accordance with tier 3 standards, using accounting policies that are consistent with those adopted by the Trustees in preparing these financial statements.

 

7.         Key Performance Targets

 

These are agreed through the Long Term Plan (LTP) public consultation process undertaken by the Southland District Council.  These targets can be changed only through a formal review of the LTP.

 

Level of service

Key performance indicator

Actual

Target

Confirmation

source

18/19

19/20

20/21

21/22

Maintain a structure that facilitates local decision making.

Number of Milford Community Trust meetings held annually.

4

4

4

4

Agenda/minute records on file.

Keep the Milford community informed about Trust plans and outcomes.

Hold public forums in Milford each year.

1

1

1

1

Agenda/minute records on file which note meeting location

 

8.         Information to be reported to Council

 

In each year the Trust will comply with all reporting requirements under the Local Government Act 2002 (particularly Sections 66 to 69 of that Act).  In particular, it will provide: 

 

§   A draft Statement of Intent detailing all matters required under the Local Government Act 2002 by 1 March each year for consideration prior to commencement of the new financial year.

 

§   A half yearly report by the end of February each year (specific dates as set by Council).

 

§   An annual report by the end of September each year (specific dates as set by Council).

 

Copies of the Trust’s reports are forwarded to the other major stakeholder authorities, being the Southland District Council, Department of Conservation and Environment Southland.

 

9.         Key Issues

 

·    The future direction of the Trust

·    Decide whether or not it is feasible to proceed with the development of a recreation centre building.

 

10.        Activities for which Other Investment is sought

 

The value of the annual concession to be charged will continue to be reviewed each year.  For 2020/2021, the total amount being sought from concessionaires is $150,583 excluding GST.  Any surplus funds will be held by the Trust in its bank account for future project funding.

 

Included within the Forecast Expenditure of the Trust is Management and Administration costs of $34,113.

 

The operational and project costs are those which the Milford Community Trust considers will provide benefit for all concessionaires at Milford and should be recovered from the Milford concessionaires through the Implied Concession Activity Fee, apportioned as per the Department of Conservation apportionment of cost schedule.  The costs indicated above in the supporting forecasted accounts are funded from the annual implied concession activity fee and monies held.

 

Future budgeted costs are indicative only and will be reviewed annually by the Trustees.

 

Other Project Funding:

 

In addition to the above operational and project costs, there are also costs associated with other significant projects that fall either directly or indirectly under the influence of the Milford Community Trust but have all or a majority of proposed funding through means other than apportioned implied concessionaires fees.  There may also be a portion of public good associated with these projects.

 

In this Statement of Intent the Trustees are seeking to borrow to fund the anticipated shortfall of the cost to build the recreation centre. The shortfall is expected to be no more than $300,000, and will be repaid over five years, commencing from 1 July 2021. Based on the current and forecast financial position of the Trust, the financials included in this Statement of Intent have been prepared on the assumption that $200,000 will be borrowed, at an interest rate of 4.65% per annum.

 

In accordance with sections 3.3 and 3.4 of Southland District Council Investment and Liability Management Policy, Milford Community Trust has the ability to approach Southland District Council to borrow funds.

 

11.        Estimate of Value of Stakeholders Investment

 

The net value of the stakeholders’ investment in the Trust is estimated to be valued at $100.  This value shall be reassessed by the Trustees on completion of the annual accounts or at any other time determined by the Trustees.  The method of assessment will use the value of stakeholders’ funds as determined in the annual accounts as a guide.

 

12.        Other Matters

 

No distribution is intended within the period of the Statement or succeeding years, noting the Trust’s status as a charitable organisation.

 

Any subscription for, purchase or otherwise acquiring shares in any company or other organisation requires the prior approval of the Trustees.

 

 

 

 

 

  

     


 [BL1]Subject to Council approval at the 3rd December 2019 Council Meeting,

 [BL2]Subject to Council approval at the 3rd December 2019 Council Meeting,

 [SM3]Need to think whether this is still appropriate

 [SM4]Need to think whether this is still appropriate – particularly the first three

 [SM5]If we get more specific about the role then this becomes less relevant than it was when the Trust was looking to play a bigger role in advocacy etc

 [SM6]Need to think whether this is still appropriate

 

Do we actually just look at doing and supporting projects for the most part?

 [SM7]Need to think whether this is still appropriate

 

For what reason – when was the last time we did this?

 [SM8]Need to think whether this is still appropriate