geyser community foundation 2011 annual report

Growth through giving ... … from one generation to another ... … forever and ever …

GEYSER COMMUNITY FOUNDATION 2011 Annual Report

THE GEYSER COMMUNITY FOUNDATIONThe Geyser Community Foundation is a charitable trust registered under the Charities Act 2005. It was formed to provide a simple, effective and long lasting way for individuals, families and organisations to leave legacies or create funds to support local causes, and to ensure these gifts will achieve maximum and enduring benefits for the Rotorua District community.

OUR VISIONGrowth through giving.

OUR MISSIONTo connect people with charitable causes through giving that lasts forever.

Registered with the Charities Commission CC21560

GEYSER COMMUNITY FOUNDATION 2011 ANNUAL REPORT 1

CONTENTS PAGE

Notice of Annual General Meetings 2 Chairman’s Report 3 - 4

Distribution Advisory Committee Report 5 - 6

Investment Committee Report 7

FINANCIAL STATEMENTS

Audit Report 8

Statement of Financial Performance 9

Statement of Movements in Equity 9

Statement of Financial Position 10

Notes to the Financial Statements 11 - 15

Donors, Supporters and Trustees 16

Directory Inside back cover

GEYSER COMMUNITY FOUNDATION

Notice is hereby given that the Annual General Meeting of the Geyser Community Foundation will be held at the new offices of East Brewster, 1137 Pukuatua Street, Rotorua, on Thursday, 15 September 2011, commencing at 4 pm.

Business of the meeting:

1. Receive the minutes of the last Annual General Meeting

2. Receive reports of the Investment and Distribution Advisory Committees

3. Receive the Chairman’s report

4. Receive the audited accounts for the year ended 31 March 2011

5. Receive the estimate of income and expenditure for the current year

6. Election of Chairman and Deputy Chair

7. Appointment of Auditor

8. General Business

Members of the public are most welcome to attend but are not eligible to vote.

Annette BurgessExecutive Officer

GCF LTD

Notice is hereby given that the Annual General Meeting of GCF Ltd will be held at the new offices of East Brewster, 1137 Pukuatua Street, Rotorua, on Thursday, 15 September 2011,immediately following the Annual General Meeting of the Geyser Community Foundation.

AGENDA

1. Apologies

2. Adoption of Annual Accounts for the year ended 31 March 2011

3. Appointment of Auditor

4. General Business

Members of the public are most welcome to attend but are not eligible to vote.

Annette BurgessExecutive Officer

2 GEYSER COMMUNITY FOUNDATION 2011 ANNUAL REPORT

Chairman’s report


WelcomeIt is my pleasure as Chairman to present this report to the fourth Annual General Meeting of the Geyser Community Foundation and GCF Limited.

Trustees have continued to work hard again this year to firmly establish and raise awareness of the Geyser Community Foundation. Our Trustees are all local people who are active in the community and who volunteer their time.

One of our founding Trustees, Paul Sandford, retired on 10 May 2011. I would like to thank Paul for his valuable input over the past four years. His early support as a Trustee and as a professional adviser was vital in helping demonstrate the business community’s willingness to be involved, and support Geyser’s future promise. I am pleased to report that Paul is now a co-opted member of both Geyser’s Distribution Advisory and Professional Advisers Committees.

As reported last year, it is wonderful to see so many people beginning to embrace the community foundation vision and turning it into a reality. The funds invested with Geyser will grow and provide an income for a range of community needs in perpetuity. Trustees are very appreciative of the support given by a range of individuals, businesses and organisations, especially at this early stage in Geyser’s development.

I am delighted to highlight some of the achievements over the past 12 months and up to July 2011.

Geyser makes it easy to giveAs a Community Foundation the main aims of Geyser are to:• Encourage and promote philanthropic giving• Make it easy for people who want to make a contribution to their community to do so without having to set up their own charitable trust• Support other charitable organisations in and around our district. Individuals can use Geyser as a vehicle for their charitable donations by:• Leaving a gift in their will• Gifting during their lifetime.

Be rewarded for givingGifting during one’s lifetime is becoming increasingly appealing to many people. Individuals are able to see how their gift benefits the community; they can meet recipients of the grants or scholarships provided and watch their progress, and they are able to take advantage of some very attractive tax benefits.

Individuals can claim a tax credit of one-third of all donations they make up to the level of their annual taxable income. This means that for every $1,000 given as a donation, individuals get $333 back in cash. Businesses

are also entitled to a deduction of all donations made to charitable organisations up to the total amount of their net income.

Endowments left in wills or donations made by living donors to Geyser can be:• Placed in the Geyser Fund. This suits donors who want to make a gift to their community but who want Geyser’s Distribution Advisory Committee to select the recipients of the donations made from the yield on the Geyser Fund from among worthy charitable causes in our community.

• Placed in a Named Fund for which the donor determines who the recipients of grants made from the yield on the fund will be and the purposes for which the grants can be used.

New funds for GeyserI am delighted to report that the number of individuals leaving endowments to Geyser through wills and family trusts increased by 45 percent over the 12 month period to 30 June 2011. The total estimated value of these endowments is $2.65 million. When realised, these will assist Geyser to grow into a major community fund.

Endowments play a vital role in the development of all community foundations. By leaving an endowment in their will to Geyser donors’ gifts keep giving forever and the total amount of each gift will, over time, far exceed the original capital donation. This is a very powerful way for individuals, families or organisations to provide long term benefits to our community.

It is pleasing to record that six Named Funds, five of which are Permanent Endowment Funds, are now managed by Geyser and the yield on these funds is distributed according to the wishes of the donors. These Funds are:• Educational Exhibitions Fund• La Grouw Fund• Life Education Trust Fund• Kaingaroa Roading Fund• Rotorua Boys’ High School Speech and Drama Fund• Rotorua District Council Sister Cities Fund

Individuals and organisations can also use the Geyser Community Foundation to administer charitable donations on their behalf. We have continued to administer the following funds this year:• Funding for Speech New Zealand Geyser Community Foundation scholarships for two Rotorua residents annually to undertake advanced speech and drama examinations• Funds management of the Rotorua Civic Theatre Redevelopment project • Funding from Ngati Rongomai that will be used for charitable purposes determined by the Trustees of Ngati Rongomai.


Funds managementThe donor funds under management at 31 March 2011 were:Permanent Endowment Funds 309,424Named Funds 63,144Pass Through Funds 140,940TOTAL $513,508

DistributionsMore than $184,000 has been distributed by the Geyser Community Foundation to charitable causes in the Rotorua District since it first began in 2007. Further details of all distributions are provided in the Distribution Advisory Committee Report.

GCF LimitedThe Geyser Community Foundation is administered and promoted by a separate company, GCF Limited. The Trustees of the Geyser Community Foundation are also the directors of GCF Limited.

The company employs Annette Burgess as its part-time Executive Officer and in July 2011, appointed Christine van Twuiver as part-time Executive Assistant. Geyser has continued to have the support of two part-time volunteers, both of whom are completing their studies: Marlise de Vries and Dana Gray. We all appreciate their support. GCF Limited derives its income from:• A one percent per year administration fee charged on all funds managed by the Geyser Community Foundation• Establishment donations from donors setting up Named Funds• Fees charged for the administration of other trust funds handled by Geyser• Grants from charitable organisations• Donations in cash and kind from supporters.

The Geyser Community Foundation continues to have the very generous support of The Tindall Foundation and the Rotorua Trust. The Tindall Foundation currently supports 12 community Foundations in New Zealand and takes an

active interest in helping them grow and develop. I also acknowledge and thank Geyser Club members who provide much needed financial assistance and the many other local businesses which provide goods, services and substantial discounts.

Considerable financial support is still required if we are to achieve our goals in this crucial phase of our development. There are costs involved in promoting and raising awareness of philanthropy, including how it will provide enormous benefits to our local community in the long term.

In conclusionSince its public launch in October 2008, the Geyser Community Foundation has successfully completed the first stage of its development: to set up the infrastructure required to operate a successful community foundation and professionally steward philanthropic gifts aimed at benefiting a range of interests in our local community.

We are now in the second phase of our development which is to actively promote philanthropy in the our district and to grow all funds, through endowments and living gifts for the benefit of our local community. This is not a short term project but is one to which we are committed long term. From what has already been achieved, we know we will ultimately be successful.

I take this opportunity to thank my fellow Trustees for their continued enthusiasm, time and commitment to the Geyser Community Foundation.

It continues to be an honour for me to be involved in the establishment of Geyser. I am constantly amazed by the generosity of people in our local community. Trustees and I thank you again for your generosity to date and look forward to your continued support.

Joe La Grouw CNZMChairmanGeyser Community FoundationGCF Limited


Distribution advisory committee reportTimeframe of this report: Although this report forms part of the Geyser Community Foundation’s Annual Report for the period 1 April 2010 to 31 March 2011, it includes comments on developments up to July 2011.

MembershipThe members of the Distribution Advisory Committee are Margriet Theron (Chair of the Distribution Advisory Committee and Deputy Chair of the Geyser Community Foundation), Paul Sandford (Trustee of the Geyser Community Foundation until 10 May 2011 and since then a co-opted member of the Committee) and Merepeka Raukawa-Tait (member of the Executive Committee of the Rotorua Social Services Council and co-opted member of the Geyser’s Distribution Advisory Committee).

La Grouw prize for the singer placed second in the Waiariki Institute of Technology New Zealand AriaJoe and Jo-Anne La Grouw established the La Grouw Fund, to be administered by the Geyser Community Foundation, in 2007 to provide prizes for the New Zealand Aria competition held annually in Rotorua. The first three awards made from the La Grouw Fund went to Claire Barton in 2008, to Rachelle Pike in 2009, and again to Claire in 2010. These opera singers had been placed second at the New Zealand Aria in those years.

This year the Waiariki Institute of Technology New Zealand Aria will be held in Rotorua from 28 to 30 October. The Geyser Community Foundation will again administer the La Grouw prize of $5,000 for the singer placed second in the competition.

The Waiariki Institute of Technology New Zealand Aria is one of Australasia’s most prestigious singing competitions. The event, in its current format, has been held annually for the past 15 years. Formerly known as the Lockwood Aria, the competition offers life-changing opportunities to entrants and has launched the careers of some fine young singers.

Speech New Zealand / Geyser Community Foundation ScholarshipsSince 2008, Margriet Theron has made funding available to the Geyser Community Foundation for the purpose of awarding scholarships to residents of Rotorua to enrol for Speech New Zealand examinations towards the qualification of Associate of Speech New Zealand in Speech and Drama or Public Speaking and Communication. The scholarships reimburse the Speech NZ fees to the scholarship recipients on successful completion of the examinations and each of the two 2011 scholarships is worth $757. The closing date for applications is 18 November 2011.

Rotorua student, Hannah Clark, was awarded the 2010 Geyser Community Foundation Speech New Zealand Scholarship. She was taught by Pam Moore and Susan

Webb, and is now a third-year student at Otago University studying History and Communications. She intends to complete her teaching diploma at Otago in 2012. Hannah believes her speech and drama training has been such an asset to her and an important addition to her curriculum vitae, particularly now that she is a young adult.

Geyser Community Foundation Rotorua Boys’ High School Scholarship for Speech and DramaAnonymous donors set up a Named Fund with the Geyser Community Foundation to provide an annual scholarship to a student at Rotorua Boys’ High School to be used for further training in speech and drama. The wishes of the donors are that the scholarship should go to a senior student at the school who is from a local and preferably financially disadvantaged family. The first scholarship of $1,000 was awarded to Jordi Webber in 2009. He used part of the scholarship to attend the eight-day National Youth Drama School in Hawke’s Bay in 2010 and is this year’s Head Prefect at Boys’ High.

The 2010 recipient of the scholarship was Mitchell Crowe, who is currently a Year 12 student. Earlier this year he attended the National Youth Drama School in Hawke’s Bay, where he studied musical theatre, screen acting and comedy for theatre. Mitchell also played a leading role in the cast of the joint Boys’ and Girls’ High production of Seussical earlier in the year. This year’s recipient of the $1,000 scholarship will be announced at Rotorua Boys’ High School’s senior prize-giving in November 2011.

Kaingaroa Roading ScholarshipJan Bolton, who lived in Kaingaroa for a number of years, set up the Kaingaroa Roading Fund up in 2010. The Fund will provide the Kaingaroa Roading Scholarship annually. Any resident of Kaingaroa undertaking tertiary study is eligible. The 2010 scholarship of $500 was

Hannah Clark (right) with her mother, Karen Clark


Margriet TheronChairmanDistribution Advisory Committee

Summary of approved distributionsSince its inception in 2007, the Trustees of the Geyser Community Foundation have approved the following distributions recommended by the Distribution Advisory Committee:

Recipient Details of the distribution AmountClaire Barton 2008 New Zealand Aria prize from the La Grouw Fund $5,000Ashleigh van den Akker 2008 Speech New Zealand / Geyser Community Foundation scholarship $670Elizabeth Marvelly 2008 Speech New Zealand / Geyser Community Foundation scholarship $670John Paul College 2008 donation towards the building of a Study Centre at the College $10,000Rachelle Pike 2009 New Zealand Aria prize from the La Grouw Fund $5,000Matthew McMenamin 2009 Speech New Zealand / Geyser Community Foundation scholarship $675Alex Keyte Beattie 2009 Speech New Zealand / Geyser Community Foundation scholarship $675Jordi Webber 2009 Speech and Drama Scholarship for a Rotorua Boys’ High School student $1,000Claire Barton 2010 New Zealand Aria prize from the La Grouw Fund $5,000Deidre Monga 2010 Kaingaroa Roading Scholarship from the Kaingaroa Roading Fund $500Mitchell Crowe 2010 Speech and Drama Scholarship for a Rotorua Boys’ High School student $1,000Hannah Clark 2010 Speech New Zealand / Geyser Community Foundation scholarship $757Anne Frank Travelling Exhibition 2011 contribution from Geyser’s Educational Exhibitions Fund $5,525Family Financial Solutions 2011 Allocation made from The Tindall Foundation Supporting Families and Trust, Taupo Social Services Fund on the recommendation of Geyser $3,500Rotorua Civic Theatre 2011 Contributions made by businesses and the public towards the Redevelopment redevelopment of the Civic Theatre $144,077TOTAL $184,049

awarded to Deidre Monga of Kaingaroa who is completing her final year towards a Bachelor of Nursing at Waiariki Institute of Technology this year.

Applications for the 2011 Kaingaroa Roading Scholarship, which has a value of $600, close on 30 September 2011. The scholarship will be presented to the successful applicant at a meeting of the Kaingaroa Village Council in November 2011.

Educational Exhibitions Fund’s contribution to the Anne Frank ExhibitionGeyser Community Foundation supporters have helped to bring the world renowned Anne Frank Travelling Exhibition to New Zealand and are assisting in getting it to Rotorua. Joe La Grouw, chairman of the Geyser Community Foundation, presented a cheque for $5,525 to Boyd Klap, chairman of the Anne Frank Travelling Exhibition, at a special function held on 9 February 2011 at the Netherlands Society Rotorua clubrooms in Neil Hunt Park. The Exhibition will be at the Rotorua Museum of Art and History Te Whare Taonga o Te Arawa from 22 March to 3 May 2012. Geyser launched the Educational Exhibition Fund in 2010 to help bring worthy educational exhibitions to Rotorua. The Fund is open for further contributions.

Redevelopment of the Rotorua Civic TheatreThe Geyser Community Foundation was Fund Manager for the redevelopment of the Rotorua Civic Theatre. While some contributions are still coming in a payment of $144,077 was made towards the cost of the upgrading of the Rotorua Civic Theatre in June 2011.

Distributions on behalf of The Tindall FoundationThe Tindall Foundation appointed the Geyser Community Foundation as its Local Advisory Committee (LAC) for the Rotorua and Taupo districts in April 2011. The Tindall Foundation has a unique funding model whereby local organisations are appointed to advise on allocations of its donations to local communities. The Geyser Community Foundation now accepts funding applications in the Supporting Families and Social Services programme area on behalf of The Tindall Foundation. The first allocation of funding of $3,500 has been made to the Family Financial Solutions Trust in Taupo. Further applications for funding close on 30 September 2011. A total amount of $42,258 is available this year.


Investment committee report

The Geyser Community Foundation policy is to invest for the long term. With this in mind, the Board wanted to move away from cash and term deposits. The Investment Committee was asked to seek a preferred option, taking into account Geyser’s needs.

In order to provide inflation protection over time for the capital and to maximise the grants available, the Investment Committee used both internal sources, and our Investment Manager to investigate how Geyser might invest its Named Funds.

The Investment Committee’s objective was to ensure investments were low risk, diverse, conservative and at minimum cost, yet able to meet Geyser’s inflation protection goal, and have a surplus for grants. A review of Investment Manager options was undertaken and through this process Craigs Investment Partners was selected to manage Geyser’s Named Funds. BNZ Bank was retained for short-term deposit and banking facilities.

Trustee, Tom Davies, is an employee and a director of Craigs Investment Partners, and remained independent of the selection process.

Geyser’s Named Funds were placed in the Craigs Investment Partners Conservative Fund on 14 March 2011, so for most of the financial year Geyser held cash and term deposits only.

The Investment Committee believes Geyser is well positioned to deliver the future needs of our community. In providing a low risk and efficient investment methodology, Geyser is protecting the capital over time and maximising grants to the community.

In closing, I would like to thank fellow committee members, Jeanne Bright and Murray Patchell, for their work during the year.

Tom DaviesChairmanGCF Investment Committee

During the year to 31 March 2011, the return from cash and term deposits did not meet Geyser’s goal to make an annual adjustment to the capital to take account of inflation plus have a reasonable surplus for grants. This was due to low interest rates and artificially high inflation during the period due to GST and other one-off increases. To account for this, the Board agreed to use some retained income to pay grants and make up the inflation adjustment in future years.

Below are the details of the CIP Conservative Fund in which the Named Funds were invested as at 31 March 2011:

Breakdown by Asset Class

NZ Fixed Interest - 43.9%

Property - 4.8%

Australian Equities - 6.6%

Cash - 32.4%

NZ Equities - 5.0%

Global Equities - 7.3%

Fund Performance as at 31 March 2011 1 Month 3 months 1 Year 2 Years (pa) 3 Years (pa) Since Inception^ Fund* 0.5% 2.4% 5.9% 6.3% 5.5% 4.9% 90d bank bill 0.3% 0.8% 3.1% 3.0% 4.5% *Fund performance is before tax and after expenses and fees ^annualised

Essential Fund FactsLaunch date:Management Fee:Unit Price as at 31 March 2011:Fund Size as at 31 March 2011:

Composition of Total Returnfor year ended 31 March 2011:

Investment Ranges:

Benchmark:

25-Oct-070.75%$1.1775$15,226,355

Income: 4.8%Capital Growth 1.1%Total Return: 5.9%

Growth Assets: 0% to 35%Income Assets: 65% to 100%Growth Assets: 25% (currently 23.7%)Income Assets: 75% (currently 76.3%)


THE GEYSER COMMUNITY FOUNDATION AND SUBSIDIARY

Financial statements for the year ended 31st March 2011

INDEPENDENT AUDITOR’S REPORTTo the Trustees of The Geyser Community Foundation

Report on the Financial StatementsWe have audited the financial statements of The Geyser Community Foundation and subsidiary on pages 9 to 15, which comprise the consolidated and separate Statement of Financial Position as at 31 March 2011, and the consolidated and separate income statements, statements of financial performance and statements of movements in equity for the year then ended, and a summary of significant accounting policies and other explanatory information.

Trustees’ Responsibility for the Financial StatementsThe trustees are responsible for the preparation of financial statements that give a true and fair view of the matters to which they relate and in accordance with generally accepted accounting practice in New Zealand and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (New Zealand).

Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view of the matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Other than in our capacity as auditor we have no relationship with, or interests in, The Geyser Community Foundation or its subsidiary.

OpinionIn our opinion, the financial statements on pages 9 to 15 give a true and fair view of the financial position of The Geyser Community Foundation and subsidiary as at 31 March 2011 and their

financial performance for the year then ended in accordance with generally accepted accounting practice in New Zealand.

Chartered Accountants30 August 2011Rotorua, New Zealand

GROUP PARENT

Note 2010/11 2009/10 2010/11 2009/10 $ $ $ $

Operating Revenue 2 122,744 72,746 16,455 7,734

Less Expenses & Grants 3 (68,069) (46,383) (56) (47)

54,675 26,363 16,399 7,687

Less Allocations to Funds 16 (18,808) (7,898) (18,808) (7,898)

Less Funds Transferredfrom/(to) Income in Advance 7 8,720 77,488 - -

Investment Write Up/(Down) 2,454 - 2,454 -

Net Surplus/(Deficit) $47,041 $95,953 $45 $(211)

GROUP PARENT

Note 2010/11 2009/10 2010/11 2009/10 $ $ $ $

Net Surplus/(Deficit) 47,041 95,953 45 (211)

Increase in PermanentEndowment Funds 50,613 114,003 50,613 114,003

Total Recognised Revenues and Expenses for the Year 97,654 209,956 50,658 113,792

Equity at the beginning of the Year 386,619 176,663 258,764 144,972

Equity at End of the Year $484,273 $386,619 $309,422 $258,764


THE GEYSER COMMUNITY FOUNDATION AND SUBSIDIARYSTATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31st March 2011

THE GEYSER COMMUNITY FOUNDATION AND SUBSIDIARYSTATEMENT OF MOVEMENTS IN EQUITYfor the year ended 31st March 2011

The attached notes form part of these financial statements.

Authorised for release on 25 August 2011 by:

______________________________Trustee _____________________________Trustee

The attached notes form part of these financial statements.

Current Assets

Funds at Bank & On Hand 270,364 572,203 146,233 438,590

Accounts Receivable 53,981 2,514 - -

Taxation Refund 1,576 1,576 80 80

325,921 576,293 146,313 438,670

Non Current Assets

Tangible Assets

Investment in Subsidiary 15 - - 3,500 4,470

Investment Portfolio 369,095 - 369,095 -

Office Furniture & Equipment 4 1,542 3,545 - -

370,637 3,545 372,595 4,470

Intangible Assets

Software 5 1,009 2,524 - -

TOTAL ASSETS $697,567 $582,362 $518,908 $443,140

Current Liabilities

Accounts Payable 17 9,210 22,633 5,402 19,986

Pass Through Funds 6 140,940 102,852 140,940 102,852

Income in Advance 7 - 8,720 - -

150,150 134,205 146,342 122,838

Non Current Liabilities

Named Funds 8 63,144 61,538 63,144 61,538

TOTAL LIABILITIES 213,294 195,743 209,486 184,376

OWNERS EQUITY

Reserves 10 484,273 386,619 309,422 258,764

Total Owners Equity 484,273 386,619 309,422 258,764

TOTAL LIABILITES AND OWNERS EQUITY $697,567 $582,362 $518,908 $443,140


GROUP PARENT Note 2010/11 2009/10 2010/11 2009/10 $ $ $ $

THE GEYSER COMMUNITY FOUNDATION AND SUBSIDIARYSTATEMENT OF FINANCIAL POSITIONas at 31st March 2011


THE GEYSER COMMUNITY FOUNDATION AND SUBSIDIARY

Notes to the financial statements for the year ended 31st March 2011

NOTE 1. STATEMENT OF ACCOUNTING POLICIES

Reporting Entity

The Geyser Community Foundation is a trust incorporated under the Charitable Trusts Act 1957 on the 14 June 2007. The Foundation obtained Charities Commission registration on 5 March 2008.

The financial statements of the Trust and Subsidiary have been prepared in accordance with generally accepted accounting practice. The financial statements comprise: statements of financial performance, movements in equity and financial position, as well as notes to these statements.

The Parent’s financial statements are for The Geyser Community Foundation and the consolidated financial statements comprise The Geyser Community Foundation and its wholly owned subsidiary GCF Limited.

General Accounting Policies

The general accounting principles recognised as appropriate for the measurement and reporting of financial performance and financial position on an historical basis have been used (as described in the specific accounting policies section below) and followed.• Reliance is placed on the fact that the Group is a going concern.• Accrual accounting is used to match expenses and revenues.

Specific Accounting Policies

The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied.

Principles of Consolidation

The consolidated financial statements are prepared from the financial statements of the Parent and its Subsidiary as at 31 March 2011 using the purchase method.

All significant transactions between the Parent Trust and its Subsidiary are eliminated on consolidation except for inter-entity administration charges from the Permanent Endowment, Pass Through and Named Funds which are not able to be eliminated. In the Parent’s financial statements, investment in its Subsidiary is recognised at cost.

Investments

Investment portfolios are recorded at Market Value. Movements within the investment values are accounted for in the Statement of Financial Performance and allocated to the individual fund to which the movement relates.

Accounts Receivable recorded in the Statement of Financial Position are shown at expected realisable value.

Fixed Assets are recorded at cost less accumulated depreciation.

Depreciation is calculated using economic rates consistent with the Income Tax Act 2007 and detailed in the Fixed Assets and Depreciation Schedule.

Rates currently allowable are as follows:Office Furniture & Equipment 48.0% to 60.0% Diminishing ValueSoftware 60.0% Diminishing Value

Goods and Services Tax. The financial statements for the Parent and Subsidiary have been prepared on a GST exclusive basis of accounting. As the Parent does not provide taxable supplies a GST deregistration will be lodged.

Differential Reporting. The Parent and its Subsidiary are entitled to claim certain exemptions from reporting standards under the differential reporting framework by virtue of the following criteria:

(1) It does not have public accountability(2) It is not large.

The Group has taken advantage of all differential reporting exemptions available.

Grants Received are accounted for in the period in which they are expended for the purpose for which they were received. Any unspent grants at year end are carried forward and recorded as funding in advance in the Statement of Financial Position.

Donations - Volunteer Goods and Services Goods and services donated to the Parent and its Subsidiary are not able to be reliably measured and are not recognised in the financial statements.

Permanent Endowment FundsPermanent Endowment Funds are maintained by the Parent for the recording of gifts from donors following a donor’s application for establishment of a named endowment fund. These funds are invested separately from the trust funds of the Parent, from which income earned is used to pay grants. Permanent Endowment Funds are subject to an establishment cost and annual charge. Pass Through FundsPass Through Funds are those funds which are made to the Parent to act as distribution agent for the gifting donor. These funds are passed through to the ultimate recipient as requested or at the discretion of the trustees of the Parent. These funds are not invested separately from other trust funds of the Parent and are subject to administration charges.


Named FundsNamed Funds are maintained by the Parent for the recording of gifts from donors following a donor’s application for establishment of a named distribution fund. Grants are made by the Parent from the capital of the fund or from income earned on the Parent’s invested funds. These funds are invested separately from the trust fund of the Parent and are subject to administration charges.

TaxationThe Parent obtained Charities Commission registration on 5 March 2008, registration number CC12560 on 30 June 2008. The Subsidiary obtained Charities Commission registration on 30 June 2008, registration number CC38057. As a consequence no provision for taxation which might otherwise be payable has been made.

Financial Instruments The Group includes all financial instrument arrangements in the Statement of Financial Position using the concepts

of accrual accounting. These instruments arise as a result of every day operations and include Cash at Bank, Accounts Receivable, Accounts Payable, Bank Overdraft and Term Liabilities. Revenues and expenses in relation to all financial instruments are recognised in the Statement of Financial Performance.

Comparative FiguresSome comparative figures have been restated to ensure consistency with current year presentations.

CHANGES IN ACCOUNTING POLICIES: Prior to the current financial year the accounting policy was to record all investments at cost. Following the investment into portfolio funds managed by Craigs Investment Partners this year, the policy has changed and the financial statements now account for these investments at market value. The change in policy has increased the investments in the Statement of Financial Position by $2,454. All other policies have been applied on bases consistent during the year.

Trustee Donations - 50 - 50

The Tindall Foundation 45,064 40,000 - -

Rotorua Energy Charitable Trust 25,000 - - -

First Sovereign Trust - 5,500 - -

East Brewster 5,000 - - -

Geyser Club 9,850 - - -

Administration Charges (Note 15) 16,400 15,315 - -

Interest Received 21,430 11,881 16,455 7,684

$122,744 $72,746 $16,455 $7,734

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTE 2. OPERATING REVENUE

Grants applied for and received in the Parent’s name for administrative purposes are credited to the Subsidiary’s financial statements and show as Group income in the consolidated accounts.

Administration charges are inter-entity charges from the Permanent Endowment, Pass Through and Named Funds which are not able to be eliminated on consolidation.

Administration Expenses 23,013 19,103 56 47

Audit Fees 2,630 100 - -

Depreciation 3,518 5,542 - -

Insurance 1,350 1,350 - -

Executive Officer Services 37,558 20,288 - -

$68,069 $46,383 $56 $47

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTE 3. EXPENSES & GRANTS


Trust and Group Trust and Group 2010/2011 2009/2010 Cost Accumulated Book Value Cost Accumulated Book Value Depreciation Depreciation

$5,300 $3,758 $1,542 $5,300 $1,755 $3,545

NOTE 4. OFFICE FURNITURE & EQUIPMENT

Trust and Group Trust and Group 2010/2011 2009/2010 Cost Accumulated Book Value Cost Accumulated Book Value Depreciation Depreciation $12,250 $11,241 $1,009 $12,250 $9,726 $2,524

NOTE 5. SOFTWARE

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

Opening Balance 102,852 2,267 102,852 2,267

Funds Received

Educational Exhibitions Fund 6,425 - 6,425 -

Speech NZ Scholarship 1,420 2,350 1,420 2,350

Civic Theatre Fund 32,680 76,960 32,680 76,960

Life Education Fund - 23,000 - 23,000

40,525 102,310 40,525 102,310

Interest Recieved (allocated) 4,098 1,832 4,098 1,832

Distributions Made (5,525) (1,267) (5,525) (1,267)

Administration Charges (1,010) (2,290) (1,010) (2,290)

(2,437) (1,725) (2,437) (1,725)

Closing Balance $140,940 $102,852 $140,940 $102,852

NOTE 6. PASS THROUGH FUNDS

Opening Balance 61,538 - 61,538 -

Funds Received

Endowment Funds Settled - 61,500 - 61,500

Investment Write Up/(Down) 438 - 438 -

Interest Received (allocated) 1,783 38 1,783 38

Less Grants Paid (allocated) (615) - (615) -

Closing Balance $63,144 $61,538 $63,144 $61,538


GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

Opening Balance 8,720 86,208 - -

Further Funds Received - - - -

Less Funds Utilised (8,720) (77,488) - -

Nett Movement (8,720) ( 77,488) - -

Closing Balance $Nil $8,720 $Nil $Nil

Represented by:

Rotorua Energy Charitable Trust - 6,258 - -

Speech NZ Scholarships - 1,000 - -

BayTrust - 1,462 - -

Closing Balance $Nil $8,720 $Nil $Nil

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTE 7. INCOME IN ADVANCE

NOTE 8. NAMED FUNDS

NOTE 9. CAPITALThe capital of GCF Limited comprises 1 share unpaid beneficially owned on behalf of The Geyser Community Foundation board.

Retained Earnings 11 174,849 127,808 (2) (47)

Permanent Endowment Funds 12 309,424 258,811 309,424 258,811

Closing Balance $484,811 $386,619 $309,422 $258,764

GROUP PARENT Note 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTE 10. RESERVES

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTE 11. RETAINED EARNINGS

Opening Balance 127,808 31,855 (47) 164

Net Surplus/(Deficit) for Year 47,041 95,953 45 (211)

Closing Balance $174,849 $127,808 $(2) $(47)


Opening Balance 258,811 144,808 258,811 144,808

Endowment Funds Settled 55,400 125,000 55,400 125,000

Investment Write Up/(Down) 2,015 - 2,015 -

Interest Received (allocated) 10,473 6,028 10,473 6,028

Less Grants Paid (allocated) (3,500) (4,000) (3,500) (4,000)

Less Administration Charges (13,775) (13,025) (13,775) (13,025)

Closing Balance $309,424 $258,811 $309,424 $258,811

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTE 12. PERMANENT ENDOWMENT FUNDS

NOTE 13. CONTINGENT LIABILITIESThere were no contingent liabilities at year end. (Last Year $Nil)

NOTE 14. CAPITAL COMMITMENTSThere were no known material capital commitments at year end. (Last Year $Nil)

NOTE 15. RELATED PARTY INFORMATIONSubsidiaryGCF Limited is a wholly owned subsidiary company of The Geyser Community Foundation, being beneficially owned by the Trust.

Funds received by the Parent on behalf of GCF Limited in 2011 have been transferred to the Company as follows:

La Grouw Fund

RBHS Speech & Drama Fund

M Theron – Speech NZ

Life Education Fund

Civic Theatre Fund

Kaingaroa Roading Fund

Ngati Rongomai Fund

This Year Last Year $ $ 10,000 10,000

525 525

1,000 1,000

700 2,500

1,010 1,290

2,550 -

615 -

$16,400 $15,315

The Parents Accounts Payable comprise of $5,400 owing to GCF Limited.

Interest 16,354 7,898 16,354 7,898

Craigs Investment Partners Write Up/(Down) 2,454 - 2,454 -

$18,808 $7,898 $18,808 $7,898

At Balance Date GCF Limited also owed the Parent $3,500 (Last Year: $4,470). This balance is unsecured and interest free.

OtherJoe La Grouw, Margriet Theron and Richard Pryce are Trustees of the Parent and have settled endowment funds on the Parent.

Tom Davies is a Trustee and is also a director of Craigs Investment Partners one of the Foundation’s current investment providers. As at 31 March 2011, Craigs Investment Partners have not charged the Foundation management fees and the value of these fees have not been calculated or accounted for in the Financial Statements.

Murray Patchell is a director of GCF Limited and Hulton Patchell Limited. Hulton Patchell Limited provides accountancy services to GCF Limited based on a contracted fee.

Helen Nathan is a director of GCF Limited and East Brewster. East Brewster donates to GCF Limited the cost of the company’s annual building rental and they donated $1,150 to the Geyser Club.

No related party debts have been written off or otherwise forgiven during the period.

NOTE 16. FUNDS ALLOCATED

GROUP PARENT 2010/11 2009/10 2010/11 2009/10 $ $ $ $

NOTES 17. ACCOUNTS PAYABLEAccounts Payable includes a Holiday Provision of $1,204 (Last Year $Nil).


Geyser Community Foundation DonorsAs at July 2011

Trustees are indebted to the following donors for embracing the community foundation vision and turning it into a reality, especially at this early stage in Geyser’s development: AnonymousAnonymousAnonymousAnonymousAnonymousAnonymousPeter and Maggie BentleyJan BoltonAnnette Burgess and Jamie CampbellGriffin SistersHelga HinzPaul KillerbyJoe and Jo-Anne La GrouwLife Education TrustSam MillwardNgati Rongomai TrustRotorua District CouncilDr Margriet Theron

The Geyser Community Foundation is pleased to acknowledge the generous support of the following organisations. Trustees are grateful for their early contributions and ongoing support:

Major SupportersRotorua Energy Charitable TrustThe Tindall Foundation

Geyser Club MembersThe Geyser Club has been established to support the administration and development of the Geyser Community Foundation. These annual donations are vital to our success.Advocate Print The Daily PostDavid Jones CreativeEast BrewsterLockwood Group LtdMediaWorksPatchell Industries LtdPatchell Stainless LtdRadio Network

SupportersAndy’s Marquee & HireBright Wild & ThomasCapers EpicureanCraigs Investment PartnersDavys BurtonDesigner CateringHulton PatchellIles CaseySandford & PartnersTelecom Business HubVilla Maria Wines

Trustees of the Geyser Community Foundation

Joe La Grouw CNZM (Chairman)

Margriet Theron (Deputy Chair)

Murray Patchell

Tom Davies

Helen Nathan Paul Sandford(Retired 10 May 2011)

Jeanne Bright

Richard Pryce

DIRECTORY

TRUSTEESJoe La Grouw CNZM (Chairman)Margriet Theron DBL, BSc, BCom (Hons), BA (Hons) (Deputy Chair)Jeanne Bright CATom Davies BCom (Ag)Helen Nathan LLB (Hons)Murray Patchell CA CPPRichard Pryce LLB (Hons)Paul Sandford LLB (Retired 10 May 2011)

DISTRIBUTION ADVISORY COMMITTEEMargriet Theron DBL, BSc, BCom (Hons), BA (Hons) (Chair)Merepeka Raukawa-Tait Paul Sandford LLB (Reappointed 10 May 2011)

DONOR APPROACH COMMITTEEHon. Steve ChadwickBill Cleghorn QSM JP FNZIVRt. Hon. Paul East QC, CNZM

FINANCEMurray Patchell CA CPP

INVESTMENT COMMITTEETom Davies BCom (Ag) (Chair)Jeanne Bright CAMurray Patchell CA CPP

POLICYHelen Nathan LLB (Hons)

PROFESSIONAL ADVISERS COMMITTEERichard Pryce LLB (Hons) (Chair)Jeanne Bright CAPaul Sandford LLB

ACCOUNTANTSHulton Patchell, Rotorua

AUDITORSIles Casey, Rotorua

SOLICITORSDavys Burton, Rotorua

BANKBank of New Zealand, Rotorua

REGISTERED OFFICELevel 2Pukeroa Oruawhata House1176 Amohau StreetRotorua

DATE OF SETTLEMENT6 June 2007

CHARITIES COMMISSION REGISTRATIONCC21560

OFFICEPhysical Address1137 Pukuatua StreetRotorua

Postal AddressP O Box 1418Rotorua 3040

Telephone07 349 7496

Facsimile07 347 8701

[email protected]

Webwww.geysercf.org.nz

EXECUTIVE OFFICERAnnette Burgess FPRINZ APR

EXECUTIVE ASSISTANTChristine Van Twuiver

ADMINISTRATIVE SUPPORT VOLUNTEERSMarlise de VriesDana Gray

www.geysercf.org.nz

geyser community foundation 2011 annual report

Documents