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

 

Date:

Time:

Meeting Room:

Venue:

 

Thursday, 5 November 2020

9am

Te Anau Library/Office, 24 Milford Crescent

Te Anau

 

Milford Community Trust Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Councillor Ebel Kremer

 

Trustees

Rosco Gaudin

 

 

Tony Woodham

 

 

Stephen Norris

 

 

Jason Steele

 

 

IN ATTENDANCE

 

Committee Advisor

Alyson Hamilton

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

05 November 2020

 

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                                                                                                                        6

6             Confirmation of Minutes                                                                                                                               6

Reports

4.1         Financial Report to 30 September 2020                                                                                             15

4.2         Audit New Zealand's Draft Management Report to 30 June 2020                                      19

4.3         Milford Performance Report                                                                                                                     35

4.4         Department of Conservation Update

Ms Croft to provide an update on behalf of the department.

 

4.5         Chairperson's Report

The Chairperson, Councillor Kremer to report on matters with which he has been involved since the last meeting of the Milford Community Trust.


 

                Apologies

 

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

 

1             Leave of absence

 

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

 

2             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.

 

3             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.

 

4             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.”

 

5             Confirmation of Minutes

3.1             Meeting minutes of Milford Community Trust, 19 June 2020


 

 

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Milford Community Trust held Via Zoom (digital technology) on Friday, 19 June 2020 at 9.30am.

 

present

 

Chairperson

Councillor Ebel Kremer

Trustees

Rosco Gaudin

 

Tim Holland

 

Brad Johnstone

 

APOLOGIES

 

Stephen Norris

New Trustee pending Council approval

Jason Steele

 

 

IN ATTENDANCE

 

 

Tony Woodham

New Trustee pending Council approval

Committee Advisor

Alyson Hamilton

 

Community Partnership Leader

Simon Moran

 

Graduate Accountant

Brie Lepper

 

Department of Conservation

Antonia Croft

 

 

 


1             Apologies

 

There were apologies from Jason Steele and Stephen Norris.

 

Moved Chairperson Kremer, seconded Trustee Gaudin and resolved:

That the Milford Community Trust accept the apologies.

 

 

2             Leave of absence

 

There were no requests for leave of absence received.

 

 

3             Conflict of Interest

 

There were no conflicts of interest declared.

 

 

4             Public Forum

 

There was no public forum.

 

 

5             Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

 

6             Confirmation of Minutes

 

Resolution

Moved Chairperson Kremer, seconded Trustee Gaudin  and resolved:

That the Milford Community Trust confirms the minutes of the meeting held on 26 February 2020 as true and correct record of that meeting.

 

Reports

 

 

4.1

Invoicing Operators

Record No: R/20/6/13416

 

Community Partnership Leader – Simon Moran was in attendance for this item.

 

Mr Moran advised the purpose of the report is to seek direction from the Trust on whether it wishes to:

  • provide financial relief to the tourism operators in Milford Sound Piopiotahi by forgoing the revenue from the last quarter invoicing of the 2019/20 financial year and the first two of the quarterly invoices for the 2020/21 financial year due to the impacts on operators from Covid-19.
  • as a consequence of the above and the impacts on tourism of Covid-19 defer the construction of the Milford recreation centre until the 2021/22 financial year.

 

 

Resolution

Moved Chairperson Kremer, seconded Trustee Holland  and resolved:

That the Milford Community Trust:

a)            Receives the report titled “Invoicing Operators” dated 12 June 2020.

 

b)           That the Milford Community Trust agrees not to invoice for the revenue budgeted for the last quarter of the 2019/20 financial year ($37,646 excl GST) and the first two quarters of the 2020/21 financial year ($75,292 excl GST).

 

c)            Agrees to defer the construction of the Milford recreation centre from 2020/21 financial year to 2021/22.

 

 

4.2

Financial Report to 31 May 2020

Record No: R/20/6/13404

 

Graduate Accountant – Brie Lepper was in attendance for this item.

 

Ms Lepper advised that the purpose of the report was to provide the Trustees with a statement of financial performance and financial position of the Trust for the period 1 July 2019 to 31 May 2020.

 

 

Resolution

Moved Chairperson Kremer, seconded Trustee Gaudin  and resolved:

That the Milford Community Trust:

a)            Receives the report titled “Financial Report to 31 May 2020” dated 10 June 2020.

 

 

 


4.3

Sensitive Expenditure Policy

Record No: R/20/6/13521

 

Community Partnership Leader – Simon Moran was in attendance for this item.

 

Mr Moran advised the purpose of the report is for the Trust to review the draft Sensitive Expenditure Policy and consideration its adoption.

 

 

Resolution

Moved Trustee Gaudin, seconded Trustee Holland  and resolved:

That the Milford Community Trust:

a)            Receives the report titled “Sensitive Expenditure Policy” dated 9 June 2020.

 

b)           Adopts the Sensitive Expenditure Policy for the Milford Community Trust.

 

 

4.4

Audit New Zealand documents

Record No: R/20/6/13608

 

Graduate Accountant – Brie Lepper was in attendance for this item.

 

Miss Lepper advised that the purpose of the report was seek formal approval of the audit proposal and the audit engagement letter for three years to 30 June 2022, and receive the audit plan for the year ended 30 June 2020.

 

The Trust noted that Audit New Zealand requires the Trust to accept and sign the proposal to conduct the annual report audit on behalf of the Auditor-General for the 2020, 2021 and 2022 years. 

 

 

Resolution

Moved Chairperson Kremer, seconded Trustee Holland  and resolved:

That the Milford Community Trust:

a)            Receives the report titled “Audit New Zealand documents” dated 12 June 2020.

 

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)           Accepts the terms, conditions, arrangements and fees as set out in attachments A, B and C of the officers report.

e)            Authorises the Chairperson to sign the following letters received from Audit NZ:

-      proposal to conduct the audit of Milford Community Trust on behalf of the Auditor General for the 2020, 2021 and 2022 financial years (attachment A of the officers report),

-      audit engagement letter (attachment B of the officers report).

4.5

Chairperson's Report

Record No: R/20/2/4307

 

The Chairperson, Councillor Kremer, reported on matters with which he has been involved since the Trust’s last meeting. These included:

 

  • discussions with Department of Conservation staff regarding lodgement of the application for the Recreation Centre and appreciation to the Community Partnership Leader for his work on this application

 

  • advice of catch-ups with Tony Woodham and Tim Holland in Milford Sound following Covid-19 lockdown with discussions on local issues

 

  • advice that Brad Johnstone (Milford Community association elected representative) and Tim Holland (Milford Community appointee) term of representation on the Trust expires 30 June 2020.  The Chair requested a note of appreciation be forwarded to both members.

 

 

 

 

4.6

Department of Conservation Update

Record No: R/20/2/4306

 

Department of Conservation representative, Antonia Croft updated the Trustees on Department activities. These included:

  • update on flood protection system processes and procedures following recent flood event

 

Members queried what action the Department of Conservation is taking to prevent flood waters going through the Events Centre in the future. Ms Croft responded remedial work by way of the water being diverted is being undertaken.

 

  • happy to see progress of the application for the Recreation Centre which has been  lodged with and acknowledged by the Department of Conservation.

 

 

 

 

4.7

Milford Community Association Report

 

Association member Brad Johnstone provided an update on activities in Milford Sound post Covid-19 lockdown advising of a skeleton crew in Milford with a minimal number of people in the area and hopeful things will change in the near future.

Mr Moran queried whether there are any Health and Safety issues at the Recreation Court that the Trust needs to be made aware of.

In response the Chairperson advised it was timely a Risk Management and Health and Safety discussion be undertaken at the next meeting of the Trust and requested this be an agenda item.

 

Resolution

Moved Chairperson Kremer, seconded Trustee Holland  and resolved:

That the Milford Community Trust:

a)            Requests a Risk Management and Health and Safety Report be presented to the next meeting of the Milford Community Trust.

 

 

Public Excluded

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

Resolution

Moved Chairperson Kremer, seconded Trustee Holland  and resolved:

That the public be excluded from the following part(s) of the proceedings of this meeting.

C5.1 Annual Insurance Renewal

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

 

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48(1) for the passing of this resolution

 

Annual Insurance Renewal

S7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists.

 

That the Community Partnership Leader – Simon Moran, Graduate Accountant – Brie Lepper and Committee Advisor - Alyson Hamilton be permitted to remain at this meeting, after the public has been excluded, because of their knowledge of the items C5.1 Annual Insurance Renewal. This knowledge, which will be of assistance in relation to the matters to be discussed, is relevant to those matters because of their knowledge on the issues discussed and meeting procedure.

 

 

The public were excluded at 10.12am.

 

 

Resolutions in relation to the confidential items are recorded in the confidential section of these minutes and are not publicly available unless released here.

 


 

 

 

 

The meeting concluded at 10.20am                     CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Milford Community Trust HELD ON FRIDAY 19 JUNE 2020.

 

 

 

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

 

 

 

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

 


Milford Community Trust

05 November 2020

 

Financial Report to 30 September 2020

Record No:             R/20/10/62046

Author:                      Brie Lepper, Graduate Accountant

Approved by:         Anne Robson, Chief Financial Officer

 

  Decision                                       Recommendation                                  Information

 

 

Purpose

1        This financial report is for the period 1 July 2020 to 30 September 2020 and provides the Trustees with an updated statement of financial performance and financial position of the Trust.

 

Commentary

The 30 June 2020 comparative financial results included in this report have been audited by Audit New Zealand and are consistent with the 2019/2020 Performance Report included in this agenda.

Financial Performance

2        As the Trust resolved at their June 2020 meeting, the first six months of concessionaire’s income for 2020/2021 has not been invoiced and therefore no concessionaire’s income has been received to date.

3        The majority of expenses to date relate to chairman fees and insurance. Insurance costs are for the placement of trustees liability, statutory liability and public liability insurance for the period 1 July 2020 to 30 June 2021. The negative general expenses relate to an accrual completed at 30 June 2020 for potential disbursements relating to the audit for the year ended 30 June 2020. As the audit was completed remotely by Audit NZ, no disbursements are anticipated.

Financial Position

4        The Trust continues to have a strong cash position with $7,566 held in the cheque/savings accounts. The savings account receives interest at a rate of 0.1% p.a.  Surplus funds are transferred to the savings account, or invested as appropriate, on a regular basis.

5        Additionally, $410,000 is invested in term deposits as outlined in the table below:

Bank

Amount

Interest Rate

Term

Maturity Date

Total Expected Interest

BNZ

$50,000

2.12%

183 Days

28/10/2020

$531

BNZ

$50,000

2.06%

184 Days

11/11/2020

$519

BNZ

$60,000

1.83%

273 Days

26/03/2021

$821

BNZ

$100,000

1.30%

212 Days

9/04/2021

$755

BNZ

$150,000

1.33%

273 Days

24/05/2021

$1,492

Total:

$410,000

 

 

 

$4,119

 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Financial Report to 30 September 2020” dated 29 October 2020.

 

 

Attachments

There are no attachments for this report.  

 


Milford Community Trust

05 November 2020

 

Audit New Zealand's Draft Management Report to 30 June 2020

Record No:             R/20/10/62685

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                        Recommendation                                  Information

 

 

Summary

1        As part of the audit process, Audit New Zealand (“Audit NZ”) 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 draft management report (the report) received from Audit NZ in relation to the performance report audit for the year ended 30 June 2020, is included as attachment A to this report. 

3        At the date of this report, Council staff were still liaising with Audit NZ and compiling their responses to the recommendations made in this report. It is anticipated that the final report will be tabled at the Trust’s meeting on 5 November 2020.

4        The draft report does not identify any new issues with the Trust’s systems or processes, however it requests an update on prior year’s outstanding recommendations (refer page 11 (appendix 1) of Audit NZ’s report).

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Audit New Zealand's Draft Management Report to 30 June 2020” dated 27 October 2020.

 

Attachments

a             Draft management report for the year ended 30 June 2020 from Audit New Zealand    

 


Milford Community Trust

05 November 2020

 

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Milford Community Trust

05 November 2020

 

Milford Performance Report

Record No:             R/20/10/62979

Author:                      Simon Moran, Community Partnership Leader

Approved by:         Rex Capil, Group Manager Community and Futures

 

  Decision                                       Recommendation                                  Information

 

 

Purpose

1        To provide the trust with the Milford Community Trust Performance Report (attachment A) for the year ended 30 June 2020 so it can be adopted.

Executive Summary

2        Milford Community Trust, as a Council controlled organisation, is usually required by the Local Government Act 2002 to develop and adopt a Performance Report within three months of the end of a financial year but due to Covid-19 pandemic, legislation was passed to extend the deadline to 30 November 2020. 

3        The Performance Report is a means for the Trust to account and report to the community on its performance for the preceding financial year.  It reports on outcomes, performance measures, both financial and non-financial and provides the actual results against budgeted results.

4        The Performance Report compares and comments on the performance of the Trust against the budget and operating targets set in their Statement of Intent 2019-2022. 

5        The Performance Report has been reviewed by the Financial Accountant and Southland District Council’s Community Partnership Leader prior to being audited by Audit New Zealand (“Audit NZ”).  Changes required from these processes have been incorporated into the document.

6        The final draft Performance Report for the year ended 30 June 2020 is attached to this report (attachment A). 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Milford Performance Report” dated 27 October 2020.

 

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 (attachment A) for the year ended 30 June 2020.

 

e)            Delegates authority to the Chairperson to sign the letter of representation to Audit New Zealand (attachment C) on behalf of Trust.

 

f)             Agrees that the audited performance report be delivered to shareholders and be made available to the public by 30 November 2020. 

 


 

Background

7        The performance report is a means of accounting for the Trust’s activities for the 2019/2020 financial year. It reports on targets and budgets in the Statement of Intent 2019-2022.

8        The Performance Report details the operating activities of the Trust and includes financial statements for the Trust. The report and financial statements have been audited by Audit NZ on behalf of the auditor-general.

9        As the Trust is a Council controlled organisation, it is required to comply with sections of the Local Government Act 2002 outlined below. Part of this includes the delivery of the audited performance report to shareholders; for this purpose the Trust shareholders have been defined as Southland District Council, the Department of Conservation and Environment Southland. The Trust must also make the performance report information available to the public.

Status of the Report

10      At the time of writing this report, Audit NZ have completed their audit fieldwork and review of the Performance Report.  Verbal audit clearance has been received along with their draft audit opinion (attachment B), and the draft representation letter (attachment C) on Thursday 22 October 2020. Any changes to the document will be tabled at the meeting.

11      The letter of representation to Audit NZ is required to be signed by the chairman and a trustee.  

Trust Performance

12      The Performance Report for the year ended 30 June 2020 details the performance of the Trust against the key performance targets that were specified in the Statement of Intent 2019-2022

13      The Trust achieved one of the two key performance indicators set for the 2019/2020 year. The February flooding event followed by the Covid-19 pandemic response prevented the Trust from meeting the target of holding a public forum in Milford Sound Piopiotahi.

Activities

14      The Performance Report 2019/2020 includes summarised information about the planned activities of the Trust and their status as programmed in the Statement of Intent 2019-2022.

15      During 2019/2020 the Trust lodged a concession application for the recreation centre with the Department of Conservation, however, it was initially noted that there may be some issues with that site.

Financial Results

16      These financial statements have been prepared in accordance with Tier 3 PBE accounting standards.  Explanations of the variances between actual results and budgeted results for 2019/2020 year can be found in note 9 of the Performance Report.

Statement of Financial Performance

17      The Statement of Financial Performance (Page 11 of the Performance Report) outlines the actual income and expenditure compared to budget. The Trust ended with a surplus of $100,075 compared with a budgeted surplus of $101,088.

18      The surplus is primarily intended to fund the construction of the proposed recreation centre.

Statement of Financial Position

19      Term deposits are higher than budgeted primarily due to work on the Cleddau Village Recreation Building not commencing. All surplus funds have been invested in term deposits.

Issues

20      There are no unresolved issues in relation to the Performance Report for the year ended 30 June 2020.

21      It should be noted that Audit NZ are proposing to issue an unqualified audit opinion, however it will include an emphasis of matter paragraph in relation to the impact of Covid-19 (refer attachment B).  Audit NZ have advised that the Office of the Auditor General have requested an emphasis of matter paragraph be included in all audit opinions of financial statements with a balance date of 30 June 2020.  This is to bring to the readers’ attention the uncertainties in regards to the impact of Covid-19.

 

Factors to Consider

Legal and Statutory Requirements

22      Under the Local Government Act 2002, the Trust must prepare and adopt a performance report in respect of each financial year.

Costs and Funding

23      The audit fee for the Performance Report for the year ended 30 June 2020 is $4,208 (excluding GST), which was paid on 20 October 2020.

24      There are no additional financial considerations associated with making a decision on whether to adopt the Performance Report.

Policy Implications

25      Section 67 of the Local Government Act 2002 requires that a Council controlled organisation must deliver to the shareholders, and make available to the public a report on the organisation’s operations during the year. The information required to be included are defined in Section 68 and 69 of the Local Government Act 2002 and the trust’s own statement of intent for the financial year.

26      Section 68 requires enough information to be included to enable an informed assessment of the operations of the trust including an assessment of performance against the statement of intent and an explanation of any major variances.

27      Section 69 requires that the report include an auditor’s report and that the audited statements be prepared within generally accepted accounting practice which incorporates the New Zealand International Financial Reporting Standards.

Next Steps

28      Once the Trust adopts the performance report for the year ended 30 June 2020, the signed version will be forwarded to the auditors and the final audit opinion will be issued.  A copy of the final audited performance report will be circulated to the stakeholders. 

Attachments

a             Performance report for the year ended 30 June 2020

b             Draft Audit Opinion from Audit NZ for 2019/2020

c             Representation letter for the year ended 30 June 2020    

 


Milford Community Trust

05 November 2020

 

 

 

 

 

 

MILFORD COMMUNITY TRUST

DRAFT

PERFORMANCE REPORT

FOR THE YEAR ENDED 30 JUNE 2020

 


Contents

 

                                                                                                                                                                                              Page

Entity Information. 3

Chairperson’s Report 4

What is the Performance Report?. 6

Performance Information. 7

Objectives. 7

Governance Report 7

Performance Targets. 8

Activity Report 9

Compensation. 10

Value of Stakeholders Investment 10

Statement of Financial Performance for the year ended 30 June 2020. 11

Statement of Changes in Equity for the year ended 30 June 2020. 12

Statement of Financial Position for the year ended 30 June 2020. 13

Statement of Cash Flows for the year ended 30 June 2020. 14

Statement of Accounting Policies for the year ended 30 June 2020. 15

Notes to the Financial Statements for the year ended 30 June 2020. 17

 

 

 

 

 

 

 

 

 

 

 

 



 

Entity Information

Legal Name:

Milford Community Trust Board

 

Type of Entity and Legal Basis:

Charitable Trust

 

Registration Number:

CC39881

 

Mission:

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.

 

Structure of the Trust:

Date of Settlement:                            May 2007

Settlor:                                              Southland District Council

 

Current Trustees:                              Term of Office:

Ebel Kremer                                       Councillor and Interim Chairperson

Tim Holland                                       Four Years

Jason Steele                                      Four Years

Brad Johnstone                                 Three Years

Rosco Gaudin                                    Four Years

 

Manager:                                           Southland District Council

Secretary:                                         Southland District Council

Trust Capital:                                    100 dollars

 

Main Sources of Resources:

Milford Community Trust's primary source of income is via a concessionaire’s fee charged to local organisations on a quarterly basis.




 

Chairperson’s Report

It's been a most challenging year for the Milford Community and Tourist Operators operating out of Milford Sound.

In February the Milford Sound area experienced a major "weather bomb" resulting in significant flooding and devastation in and around Milford. Milford road was closed for several weeks until some major road repairs allowed for organised vehicle convoys to gain access to Milford Sound. This devastation had an immediate negative economic impact on the Tourist operators with a follow on effect to the Milford Community in dealing with the floods itself followed by the flood clean-up work.

I’d like to give special acknowledgement of the Milford Emergency Response Team and community members who provided exceptional services to the Milford Community and to the hundreds of tourists evacuated from the Milford area by Helicopter. All tourists were evacuated with no major injuries or loss of life during this natural disaster and evacuation process, a credit to all those involved.

The impact of the February Floods followed by Covid 19 has been devastating to Milford's economy occurred as it did just as the Milford road was getting back to some normality with an increase of Tourist traffic to and from Milford Sound. The effect of Covid 19 on the Milford Community cannot be underestimated. Tourist operators struggling to survive have had no option but to reduce their level of staff, resulting in redundancies and some staff employment positions changed from full time to part time. This restructuring by Tourist Operators has decreased the number of residents living in the Milford accommodation village.

The Trust has recognised the significant financial impact the February floods and the continuation of Covid 19 has had, and continues to have on the economic viability of the Milford Tourist industry. It is for this reason the Trust decided not to invoice the last financial quarter contribution to the Trust. This approach was seen by the Trust as a way of acknowledging the economic down turn plus providing a level of support to the Milford Operators during such adverse times.

The Trust has also decided to place on hold for a period of up to 12 months the construction of the Recreational Facility. To construct a facility in these uncertain times and place additional responsibility on the Milford Sound Residents is, in the Trust’s view, unwise. In addition, the ongoing financial contribution by the Concession holders towards the Recreational Facility would be inappropriate under the difficult times being experienced with Covid 19.

Over the next twelve months the Trust will continue discussions with DOC as to a possible alternative site for the Recreational Facility with the end goal in mind for the facility to be adjacent to the tennis courts.

The down turn in high tourist numbers provides an opportunity to review the number of trustees required on the trust and to review the Trust’s deed itself ensuring the deed is appropriate and reflects the outcomes the Trust needs to focus on.

On behalf of the Trust I wish to thank Tim Holland and Jason Steele for their commitment and support during their time on the Trust. I wish them well in their new adventures.

Thank you to all the trustees for their support and assistance. Also my thanks to SDC staff Simon Moran for your support and guidance. I would also wish to recognise and thank DOC representative Antonia Croft for her attendance and advice.

I look forward to working alongside fellow Trustees as we meet new and challenging times. I also look forward to enhancing the Trust’s relationship with relevant agencies and organisations as we work together for the benefit and improvement of the Milford Community and its visitors.

 

 

Ebel Kremer

Interim Chairperson

Milford Community Trust

 

 

 


 

What is the Performance Report?       

Each year a Performance Report is produced for the Milford Community Trust which compares activities performed with those intended as set out in the Trust’s Statement of Intent for the year.  This information allows the operation of the Trust to be assessed by its key partners and other interested parties.  This document reports in the Trust’s activities during the year 1 July 2019 to 30 June 2020 which was the period of Year 1 in the Statement of Intent 2019/2022.

 

As a Council Controlled Organisation (CCO), the Milford Community Trust has obligations to report on its activities under the Local Government Act 2002.

 

Statement of Intent (SOI)
Sets out what the Trust will do for three years in outline and one year in detail.  Describes how it will be paid for and how it will assess whether it has been successful.  Also provides an opportunity for stakeholders and interested parties to influence the direction of the organisation and forms a basis for accountability of the Trustees.
,Performance Report (PR)
Reports back to key partners and interested parties about whether the Trust did what it said it would do for the whole year.  Presents the financial picture of the Trust at the end of the year.
,Half Yearly Report
Updates key partners on how the Trust is going part-way during the year against what it said it was planning to do.
,Southland District Council 
Long Term Plan (LTP)
Provides the long-term direction of the Council and its objectives for the Trust related to its own aims and outcomes.
,Reviewed
annually
Draft March
Final June
,Reviewed every three years 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 


Performance Information

This section reports on the Trust’s performance compared against what was intended in the Statement of Intent.

 

Objectives

 

The Trust has several key objectives which guide its activities, namely:

 

(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. 

Reporting on the activities of the Trust as well as actual performance against planned targets provides information which can be used to evaluate progress being made towards these objectives.  The Trust’s Statement of Intent includes a number of performance targets and specific projects which are reported on below.

 

Governance Report

 

The Milford Community Trust was established in 2007 following a process of consultation with residents, agencies and businesses with interests in Milford.  This followed 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 is governed by a board of seven Trustees with representatives from stakeholder groups as shown in the table below.  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.

 

Four meetings, which are open to the public, were held during the year.  These meetings were held as follows;

 

26 September 2019 at Te Anau

10 December 2019 at Te Anau

26 February 2020 at Te Anau

19 June 2020 via Zoom 

Trustees are detailed in the table below;

 

The Designation

Trustee Name

Appointed

Term Expires

Te Anau Ward Councillor, ex-officio appointment

Interim Chair

Ebel Kremer

Oct 2019

 

Dec 2019

Oct 2022

 

Dec 2020

Milford Community Association elected representative

Brad Johnstone

June 2017

June 2020

Milford Community appointees

Rosco Gaudin

Dec 2020

June 2023

 

Jason Steele

June 2018

June 2021

Tim Holland

Aug 2016

June 2020

 

Trustee appointments

No Trustees were appointed in 2019/2020. The Trust expects to fill the two vacant Trustee positions as well as the two positions that expired in June 2020 in the coming year.

 

Performance Targets

The information below sets out how the Trust performed against the key performance indicators from the Statement of Intent chosen to reflect the level of service to be provided. 

The table shows what Level of Service the Trust said it would provide, how this will be measured, the target for the 2019/2020 year and whether the targets were achieved, partially achieved or not achieved and the reason for any significant variance.

 

What the Trust said will provide

 

How the Trust said it will measure the service provided

Level of Service

Key Performance Indicator

Target

Achievement

Maintain a structure that facilitates local decision-making.

Number of Milford Community Trust meetings held annually

4

Achieved. Four meetings were held in 2019/20 in September, December, February, and June.

(2018/19 : Achieved)

Keep the Milford community informed about Trust plans and outcomes.

Hold public forums in Milford each year.

1

Not Achieved.  Due to Trustee commitments then the flood event and Covid-19 no forum was held in Milford during 2019/20.

(2018/19 : Achieved)

 

 

 


 

Activity Report

The information below reports on the planned activities included in the Statement of Intent 2019-2022 as well any unplanned for activities actually carried out during the year.

                                                                                                                                        

Activity Description

Date

Status

Planned Activities

 

 

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

 

June 2020

There have been ongoing discussions with the Department of Conservation primarily through their representatives who attend the Trust meetings.

The Cahir has also participated in discussions with the Milford Opportunities Project consultants who are working on a long-term master plan for Milford.

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

June 2020

No progress has been made in relation to the public toilets/shelter at the airport.

 

The Trust considers that it is up to the Lodge to drive the walking track project and to come back to it with further information.

Assist Milford Community Association with the ongoing development of Cleddau Village recreation area to accommodate the community centre.

June 2020

Construction was intended to occur however, flooding and Covid-19’s impacts on tourism have affected this project. The Trust decided to put it on hold for 12 months but has applied for the required concession from the Department of Conservation.

Provide funding for medical support, services and facilities for the Milford Emergency Response Team station.

June 2020

The Trust decided to allocate $80,000 p.a. in conjunction with Milford Sound Tourism Limited to ensure there was full time medical coverage for Milford. No appointments were made prior to the flooding and Covid-19 events of 2020 and it is unlikely that they will occur in the next 12 months.

Purchase of emergency response equipment as required.

June 2020

None required this year.

Facilitate the construction of the Milford recreation centre if it gets approval.

June 2020

Construction was intended to occur however, flooding and Covid-19’s impacts on tourism have affected this project. The Trust decided to put it on hold for 12 months but has applied for the required concession from the Department of Conservation.

Advocate for the continuation of maintaining beautification and roading within the village and Deepwater basin.

June 2020

Lobbying of the Department of Conservation and Council has continued primarily through the Trust meetings where representatives are present.

Unplanned Activities

 

 

None

 

 

Information Requirements

 

 

Draft Statement of Intent approved by the Trust.

30 March 2020

Achieved. Although the Trust did not have a quorum at its February meeting the Trustees subsequently confirmed their approval of the SOI.

Final Statement of Intent prepared and circulated to key partners.

30 June 2020

Achieved.  The final statement of intent was provided to Southland District Council at its 7th May 2020 meeting.

Half yearly report prepared and circulated to key partners.

30 March 2020

Not Achieved. Due to the Covid-19 lockdown the half yearly report was not provided to Southland District Council until its 7th May 2020 meeting.

 

Compensation

In the Statement of Intent, the Trust indicated that it would require funding (investment) from parties for undertaking particular activities.  The Trust is required to report on compensation provided by key partners in particular.  The table below details the actual compensation versus what was budgeted in the Statement of Intent.

 

Contribution

Activity

2019/2020

Budgeted

2019/2020

Actual

Comment

Key Partners

 

 

 

 

Other Sources

 

 

 

 

Concessionaires
(via Concession Activity Fee)

Governance Costs

$150,583

$112,938

The Trustees at their June 2020 meeting decided that due to the effects of Covid-19 on the revenues of tourism companies (all MCT revenue is derived from tourism operators), it would not invoice for the last quarter of the financial year and consciously forego the income in order to support the operators.

 

Value of Stakeholders Investment
The net value of the stakeholders’ investment in the Trust is estimated to be $463,587 as at 30 June 2020.  The assessment uses the value of stakeholders’ funds as a guide.

 


The above statement should be read in conjunction with the following Statement of Accounting Policies and Notes to the Financial Statements.


The above statement should be read in conjunction with the following Statement of Accounting Policies and Notes to the Financial Statements.

 

 

 

 

 

 

Trustee

 

 

Trustee

 

Date Signed: 

The above statement should be read in conjunction with the following Statement of Accounting Policies and Notes to the Financial Statements.


Statement of Accounting Policies
For the year ended 30 June 2020

BASIS OF PREPARATION

Milford Community Trust has applied PBE SFR-A (PS) Public Benefit Entity Simple Format Reporting - Accrual (Public Sector) on the basis that it does not have public accountability and has total annual expenses of equal to or less than $2 million.

 

All transactions in the Performance Report are reported using the accrual basis of accounting.

 

The financial statements are prepared under the assumption that the entity will continue to operate in the foreseeable future.

 

SIGNIFICANT ACCOUNTING POLICIES

 

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 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.

 

At balance date, trustee’s fees that have not been claimed are recognised as revenue.

 

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 diminishing value 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

Income Tax

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

 

Budget Figures

The budget figures are derived from the 2019-2022 Statement of Intent as approved by the Trustees on 5 April 2019.  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.

 

Changes in Accounting Policies

There have been no changes to the accounting policies applied in the financial statements from the prior year.

 

Goods and Services Tax

The Trust is registered for GST. All amounts in the financial statements are recorded exclusive of GST, except for debtors and creditors which are stated inclusive of GST.


 

Notes to the Financial Statements
For the year ended 30 June 2020

1.         Post balance date events

Southland District Council appointed two new Trustees to Milford Community Trust at their 22 July 2020 Council meeting. The new Trustees are Stephen Norris and Tony Woodham.

 

2.         Bank accounts and cash

 

Account

2020

 

2019

BNZ Cheque Account

819

 

3,756

BNZ Savings Account

17,024

 

39,046

Total

17,843

 

42,802

               

                Interest rates on the BNZ Cheque and Savings accounts at 30 June 2020 are 0.05% and 0.05% per annum respectively (2019: 0.1% and 0.1%).

 

3.         Investments

 

Account

2020

 

2019

Term Deposit(s)

410,000

 

275,000

Total

410,000

 

275,000

               

Five term deposits are held with BNZ at 30 June 2020.

·      A $150,000 deposit, maturing 24/08/2020, at 2.75% interest.

·      A $100,000 deposit, maturing 09/09/2020, at 2.41% interest.

·      A $50,000 deposit, maturing 28/10/2020, at 2.12% interest.

·      A $50,000 deposit, maturing 11/11/2020, at 2.06% interest.

·      A $60,000 deposit, maturing 26/3/2021, at 1.83% interest.

Four term deposits were held with BNZ at 30 June 2019.

·      A $30,000 deposit, maturing 18/07/19, at 1.64% interest.

·      A $120,000 deposit, maturing 22/07/19, at 3.08% interest.

·      A $45,000 deposit, maturing 11/12/19, at 3.30% interest.

·      A $80,000 deposit, maturing 09/03/20, at 3.12% interest.

 

4.       Property, plant and equipment

 

 

 

Land Improvements

 

Total

 

 

 

 

 

Carrying Amount at 1 July 2018

 

51,624

 

51,624

Additions

 

-

 

-

Disposals (net of Accumulated Depreciation)

 

-

 

-

Depreciation Expense

 

(1,549)

 

(1,549)

Carrying Amount at 30 June 2019

 

50,075

 

50,075

 

 

 

 

 

Carrying Amount at 1 July 2019

 

50,075

 

50,075

Additions

 

-

 

-

Disposals (net of Accumulated Depreciation)

 

-

 

-

Depreciation Expense

 

(1,502)

 

(1,502)

Carrying Amount at 30 June 2020

 

48,573

 

48,573

       *    Land Improvements relates to the construction of the Cleddau Village Recreational Reserve

asphalt pad. Construction was completed in March 2017.

 

5.         Contingent assets and liabilities

            There are no contingent assets or liabilities as at 30 June 2020 (Nil June 2019).

 

 

6.         Commitments

            The Trust has no commitments as at 30 June 2020 (Nil June 2019). 

 

 

7.         Accumulated Funds

 

2020

 

2019

Contributed Capital

 

 

 

Balance at 1 July

100

 

100

Balance at 30 June

100

 

100

 

 

 

Accumulated Surplus

 

 

 

Balance at 1 July

363,512

 

326,402

Surplus/(Deficit) for the year

100,075

 

37,110

Balance at 30 June

463,587

 

363,512

Accumulated funds

463,587

 

363,512

 

 

8.         Related Parties

Department of Conservation and Southland District Council with the assistance of Environment Southland worked together setting up a Council Controlled Organisation in the form of this Trust, and therefore are the stakeholders of the Trust.

 

The Trust had transactions with DOC during the year of $759 (2019 $920) for current year concessionaires income.

 

The Trust had no transactions with Southland District Council during the year (2019 Nil).

 

The Trust had no transactions with Environment Southland during the year (2019 Nil).

 

Additionally, Trustees have interests in organisations within Milford Sound which contribute to the Trust through payment of a concessionaire’s fee. Related party disclosures have not been made for transactions with these organisations as the setting of these fees is conducted under terms and conditions no more or less favourable than those that it is reasonable to expect the Trust would have adopted in dealing with the party at arm’s length in the same circumstances. 

 

 

9.         Explanation of major variances against budget

Explanations for major variations from the Trust’s budget for the year ending 30 June 2020 Statement of Intent are as follows:

 

•      Statement of Financial Performance

·    The fourth quarter concessionaires invoicing was not completed as the Trust resolved on the 19 June 2020 to forego this revenue, to provide relief for the Concessionaries due to the impact on tourism from the February floods and Covid-19.

·    No accommodation and meal costs, were incurred as the audit is completed offsite.

·    No Trustee fees or mileage was claimed by Trustees for the year.

·    Legal costs relate to advice received regarding, amending the current Trust Deed.

·    Project development costs relate to consultants work on the submission of the concessionaire application to the Department of Conservation (DOC) for the proposed recreation centre.

·    Medical Clinic support discussions/contracts were not finalised by 30 June 2020, hence no costs incurred.

•      Statement of Financial Position

·   Term Deposits are higher than budgeted primarily due to minimal progress on the recreation centre project. All surplus funds have been invested in term deposits.

·   GST Receivable, Property, Plant and Equipment and Term Loan balances are lower than budget due to the work on the Cleddau Village recreation centre being slower to progress than anticipated as a result of the February flooding event and Covid-19.

10.        The impact of Covid-19 on the Trust

On 11 March 2020, the World Health Organisation declared the outbreak of Covid-19 a pandemic and two weeks later the New Zealand government declared a State of National Emergency. The country was in lockdown at alert level four from 26 March 2020 to 27 April 2020, and then remained in lockdown at alert level three until 13 May 2020.  Additionally the country’s borders have been closed throughout lockdown and continue to date.

 

During this period and post 13 May 2020, the Trust operations were not significantly affected other than support staff moved to "working from home" and Trustee meetings being held via video conference rather than in person.

 

The effect on the Trust’s operations is reflected in these financial statements, based on the information available to the date these statements are signed. The impact is considered to be minimal as the Trust does not operate public facilities and its income is not directly driven by tourism.  However it is important to recognise that the organisations that pay the concessionaire fees to the Trust are heavily reliant on the tourism industry.  The Trust therefore decided not to invoice concessionaire fees for the period 1 April 2020 to 31 December 2020. This approach was seen by the Trust as a way of acknowledging the economic down turn and providing a level of support to the Milford operators during adverse times.

 

The Trust has also decided to place on hold for a period of up to 12 months on the construction of the recreational facility and the ongoing financial contribution by the concessionaires towards the recreational facility would be inappropriate under the difficult times being experienced with Covid-19.  Due to the infancy of this project no contract variations were incurred as a result of Covid-19.

 

As at the date of this report, the Trust has not received any enquiries from concessionaires raising concerns about their ability to pay.  Additionally the Trust’s only property asset (the recreational pad), is recognised at cost at there is no impact on its value as a result of Covid-19.

 

On this basis it is anticipated that the ongoing effect of Covid-19 on the Trust will be minimal, however some uncertainties remain. There could also be other matters that affect the Trust in the future, of which we are not yet aware.

           

 


Milford Community Trust

05 November 2020

 

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Milford Community Trust

05 November 2020

 

 

5 November 2020

 

Dereck Ollsson

Appointed Auditor

Audit New Zealand

PO Box 2
Christchurch 8140

Dear Dereck

Representation letter for the year ended 30 June 2020

This representation letter is provided in connection with your audit, carried out on behalf of the Auditor‑General, of the financial statements and statement of performance of Milford Community Trust (the Trust) for the year ended 30 June 2020 for the purpose of expressing an independent opinion about whether:

The financial statements:

·             present fairly, in all material respects:

¡   the financial position as at 30 June 2020; and

¡   the financial performance and cash flows for the year then ended; and

·             comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) Standard.

The statement of performance:

·             presents fairly, in all material respects, the performance for the year ended 30 June 2020, including:

¡   the performance achievements as compared with forecasts included in the performance target for the financial year; and

¡   the actual revenue and expenses as compared with the forecasts included in the performance target for the financial year; and

·             complies with generally accepted accounting practice in New Zealand.

We understand that your audit was carried out in accordance with the Auditing Standards issued by the Auditor‑General, which incorporate the International Standards on Auditing (New Zealand).

General representations

To the best of our knowledge and belief:

·             the resources and activities under our control have been operating effectively and efficiently;

·             we have complied with our statutory obligations including laws, regulations, and contractual requirements;

·             we have carried out our decisions and actions with due regard to minimising waste;

·             we have met Parliament’s and the public’s expectations of appropriate standards of behaviour in the public sector (that is, we have carried out our decisions and actions with due regard to probity); and

·             any decisions or actions have been taken with due regard to financial prudence.

We also acknowledge that we have responsibility for designing, implementing, and maintaining internal control (to the extent that is reasonably practical given the size of the Trust to prevent and detect fraud.

Representations on the financial statements and the statement of performance

We confirm that all transactions have been recorded in the accounting records and are reflected in the financial statements and statement of performance, and that, to the best of our knowledge and belief, having made such inquiries as we considered necessary for the purpose of appropriately informing ourselves:

·             we have fulfilled our responsibilities for preparing and presenting the financial statements and the statement of performance as required by Local Government Act 2002 and, in particular, that:

·             The financial statements:

¡      present fairly, in all material respects:

·        the financial position as at 30 June 2020; and

·        the financial performance and cash flows for the year then ended; and

¡      comply with generally accepted accounting practice in New Zealand in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) Standard.

·             The statement of performance:

¡      presents fairly, in all material respects, the performance for the year ended 30 June 2020, including:

·        the performance achievements as compared with forecasts included in the performance targets for the financial year; and

·        the actual revenue and expenses as compared with the forecasts included in the performance targets for the financial year; and

¡      complies with generally accepted accounting practice in New Zealand.

·             We believe the significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable.

·             We have appropriately accounted for and disclosed the related party relationships and transactions in the financial statements.

·             We have adjusted or disclosed all events subsequent to the date of the financial statements and the statement of performance that require adjustment or disclosure.

·             We believe the effects of uncorrected misstatements are immaterial, both individually and in the aggregate, to the financial statements and statement of performance as a whole. A list of the uncorrected misstatements is attached to this representation letter.

·             We have disclosed all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. Where applicable, such litigation and claims have been accounted for and disclosed in accordance with Public Benefit Entity Simple Format Reporting – Accrual (Public Sector) Standard.

·             The financial statements and performance information adequately disclose the impact of COVID-19.

Representations about the provision of information

We confirm that, to the best of our knowledge and belief, having made such enquiries as we considered necessary for the purpose of appropriately informing ourselves:

·             We have provided you with:

¡   all information, such as records and documentation, and other matters that are relevant to preparing and presenting the financial statements and the statement of performance; and

¡   unrestricted access to persons within the entity from whom you determined it necessary to obtain audit evidence.

·             We have disclosed to you the results of our assessment of the risk that the financial statements and statement of performance may be materially misstated as a result of fraud.

·             We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves:

¡   management;

¡   employees who have significant roles in internal control; or

¡   others where the fraud could have a material effect on the financial statements and the statement of performance.

·             We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the entity’s financial statements and statement of performance communicated by employees, former employees, analysts, regulators, or others.

·             We have disclosed to you all known instances of non‑compliance or suspected non‑compliance with laws and regulations whose effects should be considered when preparing financial statements and the statement of performance.

·             We have provided you with all the other documents (“other information”) which will accompany the financial statements and the performance information which are consistent with one another, and the other information does not contain any material misstatements.

·             We have disclosed the identity of the related parties, all of their relationships, and all of their transactions of which we are aware.

·             We have disclosed to you all information in relation to the impacts that the COVID-19 pandemic has had on the trust that could affect the financial statements and performance information.

Publication of the financial statements and statement of performance and related audit report on a website

·             The Trust accepts that it is responsible for the electronic presentation of the audited financial statements and statement of performance.

·             The electronic version of the audited financial statements and statement of performance and the related audit report presented on the website are the same as the final signed version of the audited financial statements and statement of performance and audit report.

·             We have clearly differentiated between audited and unaudited information on the website and understand the risk of potential misrepresentation without appropriate controls.

·             We have assessed the security controls over audited financial and performance information and the related audit report, and are satisfied that procedures are adequate to ensure the integrity of the information provided.

·             Where the audit report on the full financial statements and statement of performance is provided on a website, the financial statements and statement of performance are also provided in full.

Going concern basis of accounting

We confirm that, to the best of our knowledge and belief, the Trust has adequate resources to continue operations at its current level for the foreseeable future. For this reason, the Trustees continues to adopt the going concern basis of accounting in preparing the financial statements and the statement of performance for the year ended 30 June 2020. We have reached this conclusion after making enquiries and having regard to circumstances that we consider likely to affect the Trust during the period of one year from date of signing the financial statements and the statement of performance, and to circumstances that we know will occur after that date which could affect the validity of the going concern basis of accounting.

We consider that the financial statements and the statement of performance adequately disclose the circumstances, and any uncertainties, surrounding the adoption of the going concern basis of accounting by the Trust.

Throughout the year, the Trust has complied with the requirements of its banking arrangements, debenture trust deeds, or negative pledge agreements, including those relating to its net tangible assets ratios.

The representations in this letter are made at your request, and to supplement information obtained by you from the records of the Trust and to confirm information given to you orally.

 

 

 

 

 

Yours sincerely

 

 

____________________________________________

Ebel Kremer - Chairperson

 

 

_____________________________________________

Trustee

Appendix 1:  Uncorrected misstatements

Note

Statement of comprehensive income

Statement of financial position

Dr

$000

Cr

$000

Dr

$000

Cr

$000

1

 

 

 

 

2

 

 

 

 

3

 

 

 

 

 

Explanation for uncorrected differences

1             [Description]

2             [Description]

3             [Description]

Detail of performance information misstatement

Explanation of why not corrected

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix 2: 
Uncorrected disclosure deficiencies

Detail of disclosure deficiency

Explanation of why not corrected