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Milford Community Trust
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26 February 2020
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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:
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Designation
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Name
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Term
Expires
30 June
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Mararoa-Waimea Ward
Councillor, ex-officio appointment
Interim Chair
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Ebel Kremer
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Oct 2022
Dec 2021
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Milford Community Association elected representative
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Brad Johnstone
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2020
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Milford Community appointee
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Tim Holland
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2020
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Milford Community appointee
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Jason Steele
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2022
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Milford Community appointee
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Rosco Gaudin
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2023
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Milford Community appointee
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Vacant
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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.
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.
Communication:
§ Communicate the roles of the Trust and other
authorities more clearly to the Milford community.
§ Affirm the Trust role as a voice for the
Milford community.
§ Maintain relationships with Milford
infrastructure providers.
§ 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, as required,
on behalf of the Milford community to central government,
Environment Southland, Department of Conservation, Southland District
Council, Iwi and other authorities.
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.
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.
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Level of service
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Key performance indicator
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Actual
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Target
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Confirmation
source
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18/19
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19/20
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20/21
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21/22
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Maintain a structure that facilitates local
decision making.
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Number of Milford Community Trust meetings
held annually.
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4
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4
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4
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4
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Agenda/minute records on file.
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Keep the Milford community informed about
Trust plans and outcomes.
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Hold public forums in Milford each year.
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1
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1
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1
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1
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Agenda/minute records on file which note
meeting location
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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.
· The Trust has decided
to make provision for a funding grant of up to $80,000 per year to assist with
the provision of Medical Services in Milford Sound Piopiotahi.
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.
