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

 

Date:                            

Time:

Meeting room:

Venue:

 

Monday, 21 February 2022

7pm

Virtual meeting via Microsoft Teams

 

Milford Community Trust Agenda

OPEN

 

 

MEMBERSHIP

 

Chairperson

Councillor Ebel Kremer

 

Deputy Chairperson

 

 

Trustees

Rosco Gaudin

 

 

Brad Johnstone

 

 

Stephen Norris

 

 

Tony Woodham

 

 

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

Online: Southland District Council YouTube

 

Full agendas are available on Council’s website

www.southlanddc.govt.nz

 

 


 


Milford Community Trust

21 February 2022

 

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                                                                                                                                  5

Reports

4.1         Milford Community Trust's draft Performance Report for the year ended 30 June 2021 11

4.2         Invoicing operators                                                                                                                                          35

4.3         Draft Statement of Intent 2022-2025                                                                                                     39

4.4         Half Year Financial Report to 31 December 2021                                                                             51

 


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, 28 June 2021


 

 

 

OPEN MINUTES

UNCONFIRMED

 

 

Minutes of a meeting of Milford Community Trust held via Zoom (digital technology) on Monday, 28 June 2021 at 4.25pm. (4.28pm – 4.49pm).

 

present

 

Chairperson

Councillor Ebel Kremer

 

Trustees

Rosco Gaudin

 

 

Tim Holland

 

 

Brad Johnstone – (4.28pm – 4.49pm)

 

 

Stephen Norris

 

 

Tony Woodham

 

 

 

APOLOGIES

 

Brad Johnstone – (lateness)

 

 

 

IN ATTENDANCE

 

Committee advisor

Alyson Hamilton

Community partnership leader

Simon Moran

Graduate accountant

Brie Lepper

 


1             Apologies

 

There was an apology for lateness from Brad Johnstone.

 

Moved Chairperson Kremer, seconded Trustee Holland and resolved:

That the Milford Community Trust accept the apology.

 

 

2             Leave of absence

 

At the close of the agenda no requests for leave of absence had been 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 Holland  and resolved:

That the minutes of Milford Community Trust meeting held on 2 March 2021 be confirmed as a true and correct record of that meeting.

 

Reports

 

 

4.1

Financial Report to 31 May 2021

Record No: R/21/6/33263

 

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

Ms Lepper advised the purpose of the report is to provide the trustees with an updated statement of financial performance and financial position of the Trust for the period 1 July 2020 to 31 May 2021.

Chairperson Kremer requested that the chairperson’s remuneration be placed on hold due to the current economic conditions effective 1 July 2021. Check with Brie?

 

Brad Johnstone joined the meeting at 4.28pm during discussions on the report.

 

 

 

Resolution

Moved Chairperson Kremer, seconded Trustee Gaudin  and resolved:

That the Milford Community Trust:

a)            Receives the report titled “Financial Report to 31 May 2021” dated 18 June 2021.

 

 

 

4.2

Annual Report Audit Plan for the year ending 30 June 2021

Record No: R/21/6/33830

 

Graduate accountant - Brie Lepper was in attendance for this item.

1               Ms Lepper advised the purpose of this report is for the Trust to approve the Annual Report Audit Plan as proposed by Audit New Zealand (Audit NZ) for the year ending 30 June 2021.

2                

The meeting noted Audit NZ had advised that due to staffing issues they were unable to confirm if the audit of the annual report will be completed within the statutory timeframes.

 

The Trustees requested written confirmation be obtained from Audit NZ in regards the audit timetable.

 

 

 

 

Resolution

Moved Chairperson Kremer, seconded Trustee Norris  and resolved:

That the Milford Community Trust:

a)        receives the report titled “Annual Report Audit Plan for the year ending 30 June 2021” dated 18 June 2021.

 

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 Annual Report Audit Plan for the year ending 30 June 2021, as set out in attachment A noting that the audit timetable is still to be agreed.

e)      delegates authority to Council’s Financial Accountant to agree the 2020/2021 audit timetable with Audit NZ.

 

 

 

4.3

Proposed amendments to the Trust's Deed

Record No: R/21/6/34083

 

Community partnership leader – Simon Moran was in attendance for this item.

 

Mr Moran advised the purpose of the report is for the Trustees to consider the additional amendments to the Milford Communities Trust Deed following a legal review.

 

 

Resolution

Moved Trustee Gaudin, seconded Trustee Johnstone  and resolved:

That the Milford Community Trust:

a)        receives the report titled “Proposed amendments to the Trust's Deed” dated 22 June 2021.

 

b)        approves the proposed changes to the Milford Community Trust Board Deed.

 

c)         approves the request to vary the rules of the Milford Community Trust Board Deed as approved by recommendation (b) be submitted to Charities Services within one month of this resolution being agreed to.

 

d)        authorises Simon Moran to submit the request in accordance with recommendation (c) on behalf of the Milford Community Trust Board.

 

 

 

Public Excluded

 


 

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

Resolution

Moved Chairperson Kremer, seconded Trustee Woodham  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.

 

 

The public were excluded at 4.44pm.

 

 

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 4.49pm.                       CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Milford Community Trust HELD ON MONDAY, 28 JUNE 2021.

 

 

 

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

 

 

 

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

 


Milford Community Trust

21 February 2022

 

Milford Community Trust's draft Performance Report for the year ended 30 June 2021

Record No:             R/22/2/3771

Author:                      Brie Lepper, Graduate accountant

Approved by:          Anne Robson, Chief financial officer

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        To provide the trust with the draft Milford Community Trust (the Trust) Performance Report (attachment A) for the year ended 30 June 2021 and an update on the audit of the performance report.

Executive Summary

2        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.

3        The Performance Report compares and comments on the performance of the Trust against the budget and operating targets set in their Statement of Intent 2020-2023. 

4        The draft Performance Report for the year ended 30 June 2021 is attached to this report (attachment A). 

5        The 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, however due to the Covid-19 pandemic, legislation was passed to extend the deadline to 30 November 2021. 

6        At the 28 June 2021 trust meeting, Council staff presented the proposed audit plan from Audit New Zealand (Audit NZ) for the year ending 30 June 2021.  In this, Audit NZ discussed that as a result of Covid-19, they were having difficulty obtaining the auditors necessary to undertake their full work programme.  The Office of the Auditor General responded by giving Audit NZ a priority tool to decide when audits would be undertaken and is aware that a number of audits are not outside this statutory audit timeline. 

7        In October 2021 Audit NZ sent an update letter regarding the timing of the 30 June 2021 audit. This letter is attached to this report (attachment B) and outlines that the Trust’s audit is expected to occur during the first few months of 2022.  As at the date of this report, council staff have yet to have confirmation of when the audit will be undertaken.

8        The office of the Auditor-General is also engaging with Charites Services regarding extensions to their statutory guidelines. As you will be aware, the Trust is required to file their audited financial statements with the Charites Service by the 31 December to maintain their charity status. The office of the Auditor-General is engaging with Charites Services regarding extensions to this.   In the meantime, Council Staff have submitted the Trust’s draft performance report to Charity Services and will upload the audited accounts once these have been adopted by the Trust. Charities Services have agreed to this approach.

9        Once Audit NZ have completed their audit, the draft performance report will be brought back to the Trust for adoption. 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Milford Community Trust's draft Performance Report for the year ended 30 June 2021” dated 16 February 2022.

 

 

 


 

Background

10      The draft performance report is a means of accounting for the Trust’s activities for the 2020/2021 financial year. It reports on targets and budgets in the Statement of Intent 2020-2023.

11      The draft Performance Report details the operating activities of the Trust and includes financial statements for the Trust. The report and financial statements have yet to be audited by Audit NZ on behalf of the auditor-general.

Status of the Report

12      At the time of writing this report, Audit NZ have not completed their audit fieldwork and review of the Performance Report, and have not advised Council staff when this work will occur. 

Trust Performance

13      The draft Performance Report for the year ended 30 June 2021 details the performance of the Trust against the key performance targets that were specified in the Statement of Intent 2020-2023

14      The Trust achieved neither of the two key performance indicators set for the 2020/2021 year. The ongoing impact of the Covid-19 pandemic, meant the trustees did not meet for a fourth time as there was insufficient business to warrant an additional meeting. Additionally, due to the lack of Trust activity planned for the year, particularly the deferral of the proposed recreation centre, the Trustee’s considered it wasn’t necessary to hold a meeting in Milford Sound Piopiotahi.

Activities

15      The draft Performance Report 2020/2021 includes summarised information about the planned activities of the Trust and their status as programmed in the Statement of Intent 2020-2023.

16      A review of the Trust Deed was undertaken and the Trustees agreed to change the rules of the Deed to better reflect the operations and capacity of the Trust. That decision was made at its meeting on the 28th June 2021 and the amendments were electronically lodged on the 28th July 2021.

Financial Results

17      These draft financial statements have been prepared in accordance with Tier 3 PBE accounting standards.  Explanations of the variances between actual results and budgeted results for 2020/2021 year can be found in note 9 of the draft Performance Report.

Statement of Financial Performance

18      The Statement of Financial Performance (Page 10 of the draft Performance Report) outlines the actual income and expenditure compared to budget. The Trust ended with a deficit of $14,381 compared with a budgeted surplus of $36,470.

19      The deficit is due to no concessionaire’s income being collected in 2020/2021.

Statement of Financial Position

20      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

21      At the date of this report there are no unresolved issues in relation to the draft Performance Report for the year ended 30 June 2021, other than the completion of the audit.

 

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 proposed audit fee for the Performance Report for the year ended 30 June 2021 is $4,316 (excluding GST).

Policy Implications

24      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.

25      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.

26      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

27      Once Audit NZ has completed the audit of the draft performance report, council staff will bring the performance report back for the Trust to adopt for the year ended 30 June 2021. 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 then be circulated to the stakeholders. 

 

Attachments

a             Draft Milford Community Trust performance report for the year ended 30 June 2021

b             Letter from Audit New Zealand    

 


Milford Community Trust

21 February 2022

 

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator

PDF Creator


Milford Community Trust

21 February 2022

 

PDF Creator

PDF Creator

PDF Creator


Milford Community Trust

21 February 2022

 

Invoicing operators

Record no:              R/22/2/3143

Author:                      Simon Moran, Community partnership leader

Approved by:          Fran Mikulicic, Group manager democracy and community

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        To seek direction from the Trust on whether it wishes to continue to provide financial relief to the tourism operators in Milford Sound Piopiotahi by foregoing the revenue for the last six months of the current 2021/22 financial year as well as for all of the 2022/23 financial year due to the ongoing impacts on operators’ businesses from Covid-19.

Background

2        Milford tourism operators were firstly affected by the February 2020 floods, closely followed by Covid-19 and its ongoing effects on the industry due to the borders being closed to international visitors.

3        On the 3rd February the government announced that there would be progressive reopening of the border during 2022 and that they would be fully opened to international travel in October. It isn’t clear what the ‘bounce back’ will be for international tourism and it may take businesses some time to come back up to speed with staff and resourcing. In the meantime, whilst there is some domestic tourism occurring it isn’t having a marked effect for all businesses.

4        The only significant capital works project the Trust has programmed is the recreation centre in the Cleddau village. The Trust will need to apply again to the Department of Conservation for a concession for the centre however, even assuming it is successful a final decision whether to proceed with the project may also depend on the extent of the recovery in the next 12-18 months.

5        In the meantime, the Trust’s financial position is strong as can be seen in the half-year financial report also included in this meeting’s agenda. With few expenses likely to be incurred in the next eighteen months the Trust is in a position to consider foregoing the budgeted revenue in order to assist operators in these financially difficult times.

6        On the other hand, if the Trust decides to proceed with constructing the recreation centre in the short term it is most likely to need to secure a loan to undertake that work. There is unlikely to be sufficient cash reserves to fully fund the project in the absence of invoicing for revenue and the escalating costs of construction. It is also not clear whether construction of the facility in the short term would be supported by the operators who would have to fund the loan repayments and the ongoing operational costs.

7        The Trustees may recall that they previously agreed, due to the consequences of the flooding and the impacts on tourism of Covid-19, to defer the construction of the Milford recreation centre until the 2021/22 financial year. The Trust may wish to consider whether economic conditions for the operators warrant reviewing whether the timing is still appropriate. It is suggested in the Draft Statement of Intent to undertake design and consenting in 2022/23 and construction in 2023/24.

Matters to Consider

8        Before agreeing to forego a further 18 months (making it 39 months in total) of income the Trust should consider the following matters -

9        A loan may be required for the recreation centre – The actual cost of the centre will not be known until the Trust has worked through a tender process. If the cost of design and construction is likely to be higher than the Trust’s cash reserves and it is therefore likely that it will need to take a loan for the project.

10      The need to take a smaller loan is more likely the sooner the Trust begins to invoice again as per its usual schedule.

11      Foregoing further income – It is possible that the economy, and in particular tourism, will not pick up substantially in the next 18 months. In that situation the Trust may need to consider whether to forego further income.

12      Foregoing further income could impact on projects the Trust is looking to invest in.

13      Effect on Operators – It is possible that some operators that were contributing to the Trust will not be in business. The Trust may need to consider whether it seeks lower revenue from the remaining operators. Alternatively, the current level of revenue may be spread over fewer operators at a greater cost to individual operators than they were previously invoiced.

Legal Implications

14      The Local Government Act 2002, section 64 notes that a Council Controlled Organisation (CCO) must have a Statement of Intent that complies with clauses 9 and 10 of Schedule 8.

15      Schedule 8 outlines the purpose of a Statement of Intent, which is to state publicly the activities and intentions of the CCO for the year and any objectives to which those activities will contribute, providing an opportunity for the shareholder (Council) to influence the direction of the organisation on the basis of accountability of the Trustees to Council.

16      Section 66 of the LGA states that within two months of the end of the first half of each financial year the board of a CCO must deliver to shareholders a report on the organisation’s operations during that half year.

17      The decisions made by the trustees will be reflected in the Statement of Intent.

Options

18      The Trust could choose either to forego revenue for the 18 months from January 2022, or not, or for any other period of time it chooses.

Next Steps

19      The Trust will advise operators of its decision

 

 

Recommendation

That the Milford Community Trust:

a)        receives the report titled “Invoicing operators” dated 7 February 2022.

 

b)        That the Milford Community Trust agrees not to invoice for the revenue budgeted for the last two quarters of the 2021/22 financial year ($75,292 excl GST).

 

c)         That the Milford Community Trust agrees not to invoice for any revenue for the 2022/23 financial year ($0.00 excl GST)

 

 

Attachments

There are no attachments for this report. 

 


Milford Community Trust

21 February 2022

 

Draft Statement of Intent 2022-2025

Record no:              R/22/2/3164

Author:                      Simon Moran, Community partnership leader

Approved by:          Fran Mikulicic, Group manager democracy and community

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        To obtain the Milford Community Trust’s approval of the Statement of Intent (SOI) and its subsequent reporting to Council and public availability.

Background

2        Each year the Trust considers a draft Statement of Intent covering the intentions for the next three financial years. The trustees may choose to approve the draft as it is written, seek amendments to the draft and review, or approve the draft subject to any amendments they have agreed to being made.

3        Changes suggested for this Statement of Intent are shown as ‘track changes’ for the trustees to consider.

4        There is a legislative requirement under Schedule 8 of the Local Government Act that the approved SOI is made available to its shareholders on or before 1 March each year. Therefore, if any changes are requested by the Trust then it is important to consider whether it is also happy to approve the SOI subject to those changes being made.

Key Issues

5        The key issues that are signalled in the SOI are:

·     there will be no revenue for the trust in the 2022/23 financial year due to trustees continuing to forgo invoicing operators as they begin recovery from New Zealand’s borders being closed to international tourism.

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

Next Steps

6        Following approval from the trust, the SOI will be circulated and presented to Council and put on the Council’s website.

 

 

Recommendation

That the Milford Community Trust:

a)        receives the report titled “Draft Statement of Intent 2022-2025” dated 12 February 2022.

 

b)        Approves the Draft Statement of Intent 2022 – 2025, provides a copy to Council, and makes it publicly available via the Council’s website.

 

 

Attachments

a             Draft Milford Community Trust Statement of Intent 2022-2025    

 


Milford Community Trust

21 February 2022

 

 

 

 

 

 

MILFORD COMMUNITY TRUST

 

 

 

 

STATEMENT OF INTENT

2022 - 2025


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 2022 to 30 June 2025.  This 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 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. 

 

(f)        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 (as amended in 2020) the Trust is governed by a board of five Trustees.  The current trustees are shown in the table below:

 

 

Designation

Name

Term Expires

30 June

Independent Chair

Ebel Kremer

 

Dec 2022

Milford Community appointee

 

Brad Johnstone

2023

Milford Community appointee

Rosco Gaudin

2023

 

Milford Community appointee

Tony Woodham

2024

 

Milford Community appointee

Steve Norris

2024

 

 

 

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

Sensitive Expenditure Policy

 

Where appropriate, further policy guidance is obtained from relevant council’s and other statutory authorities and reviewed and updated 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
2022 – 2025 are:

 

Planning:

§   Determine the future direction of the Trust.

 

Communication:

§   Maintain relationships with the community and 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.

§   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.

 

 

 

Planned Activities/Services

 

2022/23:

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

 

2023/24:  

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

§ Review the feasibility of the recreation centre

§ Undertake planning for the recreation centre project, if appropriate.    

§ Review the future of the Trust

 

2024/25:

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

§ Facilitate the construction of the Milford recreation centre once project has been approved by Department of Conservation.    

§ Maintain oversight of the management of the Milford Recreation Centre.

 

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 and 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

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 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 by the Trust and made available to the public, by inclusion in Southland District Council’s Long Term Plan (LTP). 

 

Level of service

Key performance indicator

Actual

Target

Confirmation

source

20/21

22/23

23/24

24/25

Maintain a structure that facilitates local decision making.

Number of Milford Community Trust meetings held annually.

3

2

2

2

Agenda/minute records on file.

Keep the Milford community informed about Trust plans and outcomes.

Hold public forums in Milford each year.

0

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 made publicly available on the Southland District Council’s website.

 

 

9.         Key Issues

 

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

·    There is a need to understand which concessionaires are still operating both from a stakeholder perspective and for the purposes of apportioning the implied concession activity fee that generates the Trust’s revenue.

·    To decide when to reinstate invoicing concessionaires and for how much.

 

 

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 2022/2023, the total amount being sought from concessionaires is $0.00.

 

Included within the Forecast Expenditure of the Trust is Management and Administration costs of $30,526 (excluding GST).

 

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 may at times be 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.

 

Due to the economic effects on Milford tourism operators the Trust has chosen not to collect any revenue for some time. On top of this there has also been an increase in construction costs which means it is now unlikely that the Trust would be able to cash fund the build unless construction is delayed until invoicing operators has resumed (assuming that it would be at previous levels). The most likely scenario is that the Trust would need to seek to debt fund at least part of the costs of the building.

 

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, in the instance the Trust has insufficient cash to fund the recreation centre project. The trust may also need to consider borrowing from standard market lenders such as a bank.

 

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 this 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.

 

 

 

 

 

 


Milford Community Trust

21 February 2022

 

Half Year Financial Report to 31 December 2021

Record No:             R/22/2/3286

Author:                      Dee Patel, Accountant

Approved by:          Anne Robson, Chief financial officer

 

  Decision                                        Recommendation                                  Information

 

 

Purpose

1        The purpose of this report is to present the half yearly financial report for the period ending 31 December 2021 for the Trustee’s information.

2        As at 31 December 2021 there has been minimal expenditure. The trust continues to be in a strong financial position with a significant amount of cash invested in term deposits, awaiting the progression of the community centre project.

 

Commentary

3        The 30 June 2021 comparative financial results included in this report have not been audited by Audit New Zealand and are consistent with the draft 2020/2021 Performance Report.

Financial Performance

4        As resolved by the Trust at their June 2020 and March 2021 meetings, the first six months concessionaire’s income for 2021/2022 will not be invoiced and therefore, no concessionaire’s income has been received to date.

5        The majority of expenses are related to the donation of frisbee golf equipment and insurance costs, which are for the placement of trustees’ liability, statutory liability and public liability insurance for the period 1 July 2021 to 30 June 2022. 

Financial Position

6        The Trust continues to have a strong cash position with $10,944 held in the cheque/savings accounts.  $10,000 is being held to fund the purchase and installation of a storage shed at the tennis courts as agreed at the meeting on the 5 November 2020.

7        The savings account receives interest at a rate of 0.1% p.a.  Any surplus funds are transferred to the savings account, or invested as appropriate, on a regular basis.

8        Accrued expenses relate to audit fees that have not been paid yet and accrued income relate to the interest in term deposits.


 

Additionally, $390,000 is invested in term deposits as outlined in the table below:

Bank

Amount

Interest Rate

Term

Maturity Date

Total Expected Interest

BNZ

* $100,000

1.00%

275 days

27/1/2022

$753

BNZ

$150,000

1.10%

304 days

24/3/2022

$1,374

BNZ

$50,000

1.33%

245 days

9/6/2022

$446

BNZ

$60,000

1.50%

212 days

15/8/2022

$304

BNZ

$30,000

1.52%

244 days

15/8/2022

$305

Total:

$390,000

 

 

 

$3,182

*At the date of this report the $100,000 which matured on 27/1/2022 was reinvested in a 304 days term deposit at 1.86% maturing on 27/10/2022. The expected interest from this term deposit is $1,549.

 


 

 

Recommendation

That the Milford Community Trust:

a)            Receives the report titled “Half Year Financial Report to 31 December 2021” dated 16 February 2022.

 

b)           Approves the half yearly report for the six month period to 31 December 2021, and recommends that the report be submitted to the Southland District Council for information purposes and subsequently distributed to the Trust’s stakeholders.

 

 

Attachments

There are no attachments for this report.