CONTENTS · 2020-07-21 · Mid year market activity saw early portfolio gains reversed as slowed global growth, ... (Medical Imaging Technology) Rebecca Gibbs Bachelor of Veterinary

CENTRAL ENERGY TRUST 2019 ANNUAL REPORT Page | 1

CONTENTS

TRUSTEES 2

TRUST DIRECTORY 3

CHAIRPERSONS REPORT 4

THE YEAR IN REVIEW 7

THE OUTLOOK AHEAD 8

2019 GRANTS AT A GLANCE 8

BURSARIES 9

STATEMENT OF FINANCIAL PERFORMANCE 11

STATEMENT OF MOVEMENTS IN TRUST FUNDS 12

STATEMENT OF FINANCIAL POSITION 13

STATEMENT OF ACCOUNTING POLICIES 14

NOTES TO THE FINANCIAL STATEMENTS 16

AUDITOR’S REPORT 27


TRUSTEES FOR THE YEAR ENDED 31 MARCH 2019

During the financial year Rod Titcombe and Margaret May were Trustees from 1 April 2018 to

30 September 2018.

TRUSTEE ROLE APPOINTED

Peter Askey

Chairperson

1 October 2012

Ruma Karaitiana

Deputy Chairperson

1 October 2015

Rodney Wong

Trustee

1 October 2012

Margaret Kouvelis

Trustee

1 October 2018

Murray Georgel

Trustee

1 October 2018

Front row, from left to right: Murray Georgel, Ruma Karaitiana (Deputy Chairperson), Peter Askey (Chairperson),

Rodney Wong and Margaret Kouvelis.


DIRECTORY FOR THE YEAR ENDED 31 MARCH 2019

ACCOUNTANTS / SECRETARY

Billie Stanley

BDO Central (NI) Ltd

Palmerston North

BANKERS

ANZ BANK

Rangitikei Street

Palmerston North

ASB Bank

The Square

Palmerston North

AUDITORS

CKS Audit

Chartered Accountants

Palmerston North

SOLICITORS

Wadham Partners

Broadway Avenue

Palmerston North

INVESTMENT ADVISORS

Craigs Investment Partners

Shortland Street

Auckland


CHAIRPERSONS REPORT FOR THE YEAR ENDED 31 MARCH 2019

I’m pleased to present the Central Energy Trust Annual report

for the 2018 – 2019 year.

One of my first acknowledgments as Chair is to express my

appreciation of previous Chair Rod Titcombe and previous

Deputy Chair Margaret May, both of whom retired during the

year. Rod and Margaret’s commitment and desire to progress

the Trust and positively empower the community is represented

by the recent achievements of the trust and is testimony to their

hard work and commitment. Their standing and knowledge has

been of enormous benefit to the Trust and they will be missed.

Through Rod and Margaret’s retirement the Trust welcomed two

new Trustees, Murray Georgel and Margaret Kouvelis. Murray

and Margaret have a strong commercial and community

connection to our region and bring with them skills and expertise

that compliment the continuing Trustees well.

Those that attended the 2018 Annual General Meeting and or

made a grant application during the year would be aware that

long standing Secretary Ron Eglinton stood down during the

year. Ron has been involved with the Trust for over 25 years

and has assisted the Trust through significant challenges and

developments during his tenure. The knowledge and guidance

Ron provided is a legacy that will be appreciated and utilised for

many years to come.

During the year The Trust reviewed its Strategic Plan. Changes

that will become obvious to beneficiaries include our digital

strategy and a refined application process for low value grants.

COMMUNITY INVESTMENT HIGHLIGHTS

The Trust continues to focus on its ability to enable the

community through allocations made each year. The 2019 year

is one that has seen grants awarded in prior years to long term

projects take their operational form. In addition the Trust has had

the opportunity to make significant contributions in support of

new projects that will benefit the wider community.


CHAIRPERSONS REPORT - Continued FOR THE YEAR ENDED 31 MARCH 2019

The Central Energy Trust Wildbase Recovery is now open to the

public six day a week with educational programmes running

Monday to Friday. It is encouraging to see the day to day

education come to fruition with over 1,500 students participating

in Wildbase programmes. Those of you who may have been

through the facility with your families will have been able to see

the animal care operations in action with celebrity patients such

as the Kārearea (New Zealand Falcon) successfully recovering

in the centre and being released. It’s rewarding to see the power

of Trust funds making real world changes once a project is

completed.

During the year the Trust was in a position to grant funds towards

a project that would be utilised by a wide range of community

users from across the region. Palmerston North City Council was

awarded funds to assist with the lighting of He Ara Kotahi cycle

and pedestrian bridge and pathway. He Ara Kotahi which means

‘the path that brings people together’ is now officially open and

it’s heartening to see so many people from our community using

a facility (5,600 people using the bridge on a single day) that the

Trust assisted in a small way to come to fulfilment.

Other projects of note include grants to the Tararua District

Council lighting project in Pahiatua and The Factory to support

economic development projects.

While fortunate to help realise some large projects the impact of

more modest grants is important to the Trust. Some grants may

appear to be small in value yet they often represent the

difference between charities and service groups continuing to

offer core activities to those in need or not. Those organisations

are often vulnerable to the availability of funding and therefore

their needs are no less important to trustees than any other

applicant.

.


CHAIRPERSONS REPORT - Continued FOR THE YEAR ENDED 31 MARCH 2019

The Trust is experiencing unprecedented numbers and value of

applications. The value of applications received now significantly

exceeds the funds available for distribution.

Striking a balance between the needs of all those seeking

funding is a responsibility Trustees take very seriously. The

burden of making grant funding decisions and trying to achieve

the most equitable outcomes for all organisations in relation to

the amount of funds available takes considerable time and due

diligence. The increase means decisions are becoming

increasingly challenging and we thank you for your patience as

we strive for the best possible outcome.

On behalf of the Trust I would like to congratulate our 15 Bursary

recipients and wish them a successful year of study.

My appreciation goes to Secretary Billie Stanley and her staff,

Nigel Scott of Craigs Investment partners, Auditors CKS Audit

and Solicitors Wadham Partners. I also thank my fellow

Trustees for their support and contributions. It is a pleasure to

work with a dedicated team who come together to ensure the

Trust is in a strong position to meet the challenges of the future.

Finally, I would like to thank all grant recipients through whose

efforts convert the funds allocated into wider community

benefits.


THE YEAR IN REVIEW FOR THE YEAR ENDED 31 MARCH 2019

As with previous years the volatile nature of global financial markets was a prospect, and this year was

no different. Mid year market activity saw early portfolio gains reversed as slowed global growth,

reduced banking stimulus and worsening trade tensions fuelled a financial market correction. In the

2019 New Year the concerns of late 2018 seem to have faded as share markets ended the year on a

high note, which enabled the Trust to recognise an increase in the value of investments totalling some

$4.9 million.

In comparison Trust holdings of New Zealand Fixed Interest Bonds allowed maintenance of interest

income, a direct result of a long term holdings of high yielding maturity profiles. With New Zealand

interest rates at record low levels the impact on Trust income going forward will be dependant on the

ability to secure appropriate reinvestment rates as these bonds mature.

Despite market volatility the strength of both New Zealand and International dividend income resulted

in a 6.6% increase in total income received for the year. Expenditure for the year was $85,279 higher

than the previous year, this is due to the triennial Trustee appointment process and increased costs

associated with maintaining operations. This resulted in an operating surplus of $2.2 million before

allocations of funds and portfolio gains; an increase of 3.7%. Trust operation surpluses at this level

provided for the continuing role of the Trust in facilitating the needs and development of community

groups in the region. Trustees awarded $2.4 million of grants and $67 thousand of bursaries to

recipients; resulting in an after tax deficit of $312 thousand. Due to the strong performance from the

Trust’s portfolio the final position was a Trust surplus of $4.6 million.

Total Trust funds of Trust Capital and accumulated income, after fund allocations and portfolio

movements exceeded $70 million for the first time.


THE YEAR IN REVIEW - Continued FOR THE YEAR ENDED 31 MARCH 2019

44%

13%

14%

5%

23%

Community Facilities Arts and CultureEducation Community WellbeingSport

THE OUTLOOK AHEAD

Great emphasis is placed on management of investments for long term security while also focusing on

generating liquidity to continue to fund community initiatives. The economic environment experienced

during the year was one that required careful management, with particular attention given to the

significant increase in both the average grant value requested and the number of grant applications

received. The upward trend in applications made allocation of funding difficult given the aggregate

value of grant applications significantly exceeded funds available. This will continue to be a factor in

the year ahead with the likelihood that International and New Zealand markets will continue to be

volatile. Of particular focus for the 2020 financial year is the softening New Zealand economy and the

impact of the official cash rate which will influence the ability to source higher interest bearing bonds.

This is expected to result in a reduction of future income which in turn will reduce the availability of

funds to meet the growing demand for grants.

2019 GRANTS AT A GLANCE

TOTAL NUMBER OF GRANT

APPLICATIONS RECEIVED

158

VALUE OF GRANTS AWARDED

$2,457,444

AVERAGE VALUE OF GRANTS AWARDED

$17,680

Individual grant applications range from

$300 - $350,000

SUCCESSFUL GRANT APPLICATIONS

88%

PERCENTAGE OF FUNDING AWARDED BY CATEGORY


BURSARIES FOR THE YEAR ENDED 31 MARCH 2019

2019 CENTRAL ENERGY TRUST BURSARY RECIPIENTS

This Financial year fifteen students were awarded Academic and Vocational Scholarships. Bursars

studying over the next three to four years are:

Amber Fielder-Beaumont Bachelor of Applied Science (Medical Imaging Technology)

Rebecca Gibbs Bachelor of Veterinary Science

Jessica Goodman Bachelor of Arts - Double Major of Psychology & Media Studies

Rachel Greene Bachelor of Environmental Science

Owen Keenan Masters in Human Nutrition

Gracen Keyes-Kumeroa Bachelor of Nursing

Brianna Manson Bachelor of Veterinary Science

Adam Martin Bachelor of Business Studies

Caitlin Mercer Masters of Teaching and Learning (Secondary)

Phoenix Reid Bachelor of Science majoring in biochemistry & psychology

Tahlia Runga Bachelor of Business Studies

Jaqueline Siu Defence and Security

Callum Taylor-Voullaire Service Technician (MITO)

Payton Whenuaroa Bachelor of Health Science

Korie Winters Bachelor of Business Studies


BURSARIES - Continued FOR THE YEAR ENDED 31 MARCH 2019

CAITLIN MERCER

2019 BURSARY PRESENTATION EVENING

For the second year running the Trust had on offer the

Central Energy Trust Supreme Award being recognition of

an outstanding applicant. The supreme award totals

$15,000, $5,000 per annum over a period of 3 years.

For the 2019 year the Trustees awarded the Supreme Award

to Caitlin Mercer of Freyberg High School. Cailtin is studying

towards a Masters of Teaching and Learning (Secondary).

Caitlin stood out due to her community involvement,

academic achievement, need and use of funds, as well as

being a well rounded young women who acts with honesty

and integrity.


STATEMENT OF FINANCIAL PERFORMANCEFOR THE YEAR ENDED 31 MARCH 2019

This statement is to be read in conjunction with the statement of accounting policies, notes to the financial statements and the audit report.

Note 2019 2018$ $

IncomeDividends 1,094,372 926,508

Interest 1,591,377 1,593,766

2,685,749 2,520,274

ExpensesAccounting and administration 92,466 87,195

Advertising 8,770 7,714

Audit fees 6,100 6,000

Bank charges and fees 402 242

Bursary and AGM expenses 4,303 4,488

Consultants fees (internal) 5,021 5,935

Digital enhancement 680 -

Foreign exchange loss 47,754 41,306

Insurance (Trustees) 4,447 4,447

Portfolio management 125,258 93,799

Printing, stationery, and tolls 5,040 5,179

Secretarial fees 31,584 25,230

Trustee recruitment 18,334 -

Trustees expenses 2,233 887

Trustees fees 68,250 60,250

Website expenses 530 530

GST on expenses 35,850 28,541

457,022 371,743

Operating surplus before distributions 2,228,727 2,148,531

AllocationsBursaries and scholarships paid (67,000) (75,000)

Grants approved during the year 1 (2,457,444) (2,276,990)

Grant adjustments 1 31,352 73,330

Total allocations to beneficiaries (2,493,092) (2,278,660)

Income surplus (loss) before tax (264,365) (130,129)

Taxation for the year 4 (47,485) (38,420)

Income surplus (loss) after tax (311,850) (168,549)

Investment portfolio movements

Realised profit on disposal of investments 3 1,065,087 1,354,721

Realised loss on disposal of investments 3 (827,162) (389,044)

Unrealised changes in investment values 3 4,675,833 2,906,748

Total investment portfolio movements 4,913,758 3,872,425

Trust surplus (loss) after tax and

provision for grants$4,601,908 $3,703,876


STATEMENT OF MOVEMENT IN TRUST FUNDSFOR THE YEAR ENDED 31 MARCH 2019


Note 2019 2018$ $

Trust funds at beginning of year 66,221,305 62,517,917

Net surplus (loss) for the year after tax

and provision for Grants4,601,908 3,703,876

Tax charge on behalf of beneficiaries - (488)

Trust funds at end of year 5 $70,823,213 $66,221,305

Represented by:

Trust capital brought forward 59,208,217 55,335,792

Total investment portfolio movements 4,913,758 3,872,425

Trust capital at end of the year $64,121,975 $59,208,217

Accumulated income reserve brought forward 7,013,088 7,182,125

Operating surplus 2,228,727 2,148,531

Less: Total allocations to beneficiaries (2,493,094) (2,278,660)

(264,365) (130,129)

Tax charge for the year (47,485) (38,420)

Tax charge on behalf of beneficiaries - (488)

Accumulated income reserve

at end of year$6,701,238 $7,013,088


STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 31 MARCH 2019


Note 2019 2018$ $

Trust capital 64,121,975 59,208,217

Accumulated income reserve 6,701,238 7,013,088

Trust Funds 5 $70,823,213 $66,221,305

Represented by:

Current AssetsCash at bank 2 4,562,945 2,875,982

Term deposits 1,321,335 1,876,518

Accrued interest 264,624 270,219

Taxation receivable 4 24 -

6,148,928 5,022,719

Non-current AssetsShares and securities 3 66,985,610 64,557,183

Total Assets 73,134,538 69,579,902

Current liabilitiesAccounts payable 54,978 51,055

Grants approved not paid 1 2,256,347 3,307,542

Total Liabilities 2,311,325 3,358,597

Total Net Assets $70,823,213 $66,221,305

P T Askey Dated::

Chair

K M KaraitianaDeputy Chair

Morgan.Craven

Stamp

Morgan.Craven

Stamp


STATEMENT OF ACCOUNTING POLICIESFOR THE YEAR ENDED 31 MARCH 2019

(A) BASIS OF PREPARATION

Central Power Electricity Trust was established on 20 July 1993 by a Trust Deed pursuant to theEnergy Companies Act 1992. On 17 February 2003 the Trustees passed a unanimous resolutionto change the name of the Trust to Central Energy Trust.

The financial statements are presented in New Zealand Dollars ($) which is the Trusts functionalcurrency. The financial statements comprise statements of the following: accounting policies;financial performance; movements in equity; financial position; as well as notes to these statements.

The financial statements are special purpose financial statements and have been prepared for thereporting requirements of the Trustees and Beneficiaries of Central Energy Trust only in accordancewith the following accounting policies.

The financial statements have been prepared on the basis of historical cost except investmentswhich are stated at valuation.

(B) INVESTMENTS

Current investments are stated at quoted market value. Unrealised gains and losses arising fromchanges in market value are recognised in the statement of financial performance.

(C) TAXATION

Taxation expense recognised for the year is calculated using the taxes payables method and isdetermined using tax rules. Under the taxes payable method taxation expense is equal to theestimated income tax payable for the year, adjusted for any differences between the estimated andactual income tax payable in prior years. Taxation expense is reflected in the statement of financialperformance.


STATEMENT OF ACCOUNTING POLICIESFOR THE YEAR ENDED 31 MARCH 2019

(D) FOREIGN CURRENCIES

Foreign currency transactions are translated to New Zealand currency at the exchange rate rulingat the dates of the transactions.

Monetary assets and liabilities in foreign currencies are translated at the exchange rate at balancedate.

Exchange differences arising on the translation of monetary assets and liabilities are recognised inthe statement of financial performance.

(E) REVENUE

Revenue derived from investments held during the year comprise dividend and interest income.Dividend income (excluding imputation tax credits) is recognised in the statement of financialperformance when the dividend is declared and paid. Interest income is recognised in the statementof financial performance on an accrual basis and is not included in the market value of theinvestment.

(F) GOODS AND SERVICES TAX

The Trust is not registered for GST and therefore the statement of financial performance has beenprepared with GST on expenses as a separate item.

(G) GRANTS

Grants are accounted for as they are approved to eligible organisations as approved by theTrustees. Grant adjustments relate to excess funds over that required to complete the projectapproved by the Trustees.

(H) CHANGES IN ACCOUNTING POLICIES

There have been no changes in accounting policies. All policies have been applied on a basisconsistent with those used in previous years.


NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2019

(1) GRANTS APPROVED

Approved Approvedand paid not paid Total

$ $ $Anglican Parishes of the Oroua 8,107 - 8,107

Arohanui Hospice - 2,865 2,865

Ashhurst Bowling Club Inc - 4,007 4,007

Ashhurst Kindergarten - 662 662

Ashhurst School 26,555 - 26,555

Assembly of God (SALT) - 26,250 26,250

Awahou School 2,496 2,321 4,817

Awahuri Forest - Kitchener Park Trust - 7,900 7,900

Baptist Student Hostel PN 10,637 - 10,637

Bush Multisport Trust 36,616 - 36,616

Camelia House Trust 1,777 - 1,777

Campbell Street Kindergarten 2,470 795 3,265

Carncot Private School Trust - 11,057 11,057

Cloverlea Kindergarten - 2,708 2,708

Cloverlea Primary School 9,440 - 9,440

Community Arts Palmerston North - 5,863 5,863

Creative Sounds Society Inc 46,775 3,225 50,000

Crossroads (PN) Church Street - 24,137 24,137

Eketahuna Health Centre Trust Inc 1,042 - 1,042

Feilding & District Steam Rail Society 2,314 - 2,314

Feilding I A & P Association 7,208 - 7,208

Feilding Golf Club 5,715 - 5,715

Feilding New Life Church 6,654 6,495 13,149

Feilding Rugby Football Club - 1,934 1,934

Globe Theatre Trust - 6,128 6,128

Halcombe School - 13,712 13,712

Heritage Park Rhododendron Charitable Trust - 1,709 1,709

Highland Home Christian Camp - 1,472 1,472

Himatangi Beach Community Trust Inc 14,310 - 14,310

Hokowhitu Baptist Church - 36,432 36,432

Hokowhitu School 3,033 - 3,033

Holyoake Kindergarten - 2,175 2,175

Housing Advice Centre 2,766 - 2,766

John Lambert Trust 7,804 - 7,804

Kimbolton Arts & Sculpture Trust - 5,000 5,000

Kimbolton Community Centre - 9,410 9,410

Kimbolton Early Learning Centre - 2,296 2,296

Kind Hearts Trust - 5,386 5,386

Kiwi West Aquatics Inc 2,925 - 2,925Lancewood Event Management (2019 Festival of

Cultures)- 15,000 15,000



(1) GRANTS APPROVED (continued)

Approved Approvedand paid not paid Total

$ $ $Lancewood Event Management (2019

Esplanade Day)- 7,000 7,000

Learning and Growing Together Trust 2,043 4,241 6,284

Legacy Community Centre 20,161 - 20,161

Linton Camp School 6,858 - 6,858

Linton Country School - 5,110 5,110

Linton Area Kindergarten - 4,142 4,142

Longburn Adventist College 16,528 - 16,528

Luck Venue 11,950 - 11,950

Makino Kindergarten - 1,249 1,249

Makuri Country Club - 5,191 5,191

Manawatu & West Coast A&P Assoc (Annual

Dairy Event) - 4,140 4,140

Manawatu Access Radio 60,000 - 60,000

Manawatu Cricket Association 15,810 34,190 50,000

Manawatu Gymsports Inc 20,513 - 20,513

Manawatu Historic Vehicle Collection Trust - 60,000 60,000

Manawatu Jazz Club - 6,000 6,000

Manawatu Lutheran Parish 1,603 - 1,603

Manawatu Rugby Union 13,356 6,644 20,000

Manawatu Showgrounds Skating Club - 764 764

Manawatu Sports Foundation (SPOTY 2019) - 24,000 24,000

Manawatu Summer Shakespeare (School

of English & Media Studies 2019)- 5,000 5,000

Manawatu Tattoo 37,000 - 37,000

Manawatu Theatre Society 18,870 3,240 22,110

Manawatu Toy Library Association Inc - 7,842 7,842

Manchester House Social Services – Dancing

with Feilding Stars- 4,379 4,379

Manchester Kindergarten - 2,240 2,240

Manfeild Park Trust 44,444 30,000 74,444

Massey University – Hockey Turf - 200,000 200,000

Milson Kindergarten - 1,199 1,199

Milverton Kindergarten - 188 188

Mount Biggs School - 3,733 3,733

NZ Rural Games Trust 60,000 - 60,000

Oroua Women’s Club Inc 3,717 - 3,717

Pahiatua Bowling Club 1,000 - 1,000

Pahiatua Early Learning - 809 809

Pahiatua School - 29,963 29,963

Palmerston North Bowling Club - 9,806 9,806




Approvedand paid

$

Approvednot paid

$

Total$

Palmerston North Brass Band 3,173 - 3,173

Palmerston North Christian Leaders

Association Inc 6,000 - 6,000

Palmerston North City Council - 350,000 350,000

Palmerston North Dance Association 10,000 - 10,000

Palmerston North Esplanade Scenic

Railway Inc11,007 - 11,007

Palmerston North Methodist Social Services 782 - 782

Palmerston North New Life Charitable Trust - 7,275 7,275

Palmerston North Parents Centre 820 - 820

Palmerston North Squash Gym 10,000 - 10,000

Palmerston North Theatre Trust 34,755 - 34,755

Parentline Manawatu Inc 9,859 - 9,859

Pascal Street Community Trust 5,760 - 5,760

Performance Consulting Ltd 15,000 6,000 21,000

Pongaroa Domain Board 3,792 - 3,792

Project Litefoot Trust 9,096 - 9,096

Prisoners Aid & Rehabilitation Society - 2,222 2,222

RACE Incorporated - 6,800 6,800

Rangiotu Memorial Hall Society Inc - 13,331 13,331

Rangiwahia Environmental Arts Centre Trust 1,050 - 1,050

Red Sox Sports Club - 5,214 5,214

Riverdale Kindergarten - 827 827

Roslyn Kindergarten - 2,108 2,108

Roslyn Primary School 6,000 - 6,000

Ross Intermediate School 57,017 - 57,017

Rotary – District 9940 16,600 - 16,600

Ruahine Kindergarten Association 4,245 - 4,245

Rudolf Steiner School - 968 968

Scouting Hokowhitu 10,797 4,540 15,337

Somerset Crescent School 6,490 - 6,490

Somerset Kindergarten - 2,769 2,769

St Josephs School 6,771 - 6,771

St Peter’s Anglican Church 13,200 - 13,200

Takaro Kindergarten 3,024 1,712 4,736

Takaro School 14,871 - 14,870

Tangimoana School - 4,500 4,500

Tararua College - 958 958

Tararua District Council - 160,000 160,000

Te Aroha Noa Community Services Trust - 47,135 47,135

Te Manawa Family Services - 12,134 12,134



The Bio Commerce Centre Limited

Approvedand paid

$175,000

Approvednot paid

$-

Total$

175,000

The Feilding Club 3,600 - 3,600

The Manawatu Club 4,787 - 4,787

The Marist Club (PN) Inc 93,593 - 93,593

The Pahiatua Marae - 3,149 3,149

The Ryder-Cheshire Foundation Manawatu 24,750 - 24,750

The Salvation Army NZ Trust - 26,794 26,794

Turitea Childcare Centre - 1,031 1,031

Unity Singers Club 1,383 - 1,383

WildBase – Year 1 Operational Costs - 25,000 25,000

YMCA - 17,250 17,250

$1,095,718 $1,361,726 $2,457,444




Add Grants approved in previous years and not paid.

Ashhurst Pohangina Rugby Football Club 12,000

Awatapu College 26,559

Bush Multisport Trust 150,000

Cloverlea Kindergarten 1,100

EECA Healthy Homes (Tararua Healthy Homes) 2016-2017 1,725

EECA Healthy Homes (Manawatu Healthy Homes) 2016-

201713,134

Feilding Civic Centre Trust 3,700

Feilding Scout and Guide Hall Committee 10,200

Future Beef New Zealand 2,200

Globe Theatre Trust 10,425

Kairanga School 1,530

Lancewood Event Mgmt Ltd (2018 Festival of Cultures) 15,000

Longburn Adventist College 84,596

Manawatu River Zone Scouts 19,504

Manfeild Park Trust 16,364

MDC - Feilding Resource Recovery Centre 230,000

Order of St John Bush 50,000

Performance Consulting Ltd - Summer concerts 6,000

PNCC - Central Energy Trust Arena 200,000

St Josephs School 583

Te Kawau Amateur Swimming Club 30,000

Voice Thru Your Hands Charitable Trust 10,000

Total grants approved in previous years

and not paid$894,620

Total grants approved, not paid as

at 31 March 2018$2,256,347

2019 2018$ $

Grants owing 1 April 3,307,542 2,604,703

Grants approved during year 2,457,444 2,276,990

5,764,986 4,881,693

Grants paid during year - current period (1,095,718) (527,690)

- prior periods (2,381,571) (973,131)

(3,477,289) (1,500,821)

Grant adjustments (31,352) (73,330)

Total grants approved not paid

as at 31 March$2,256,346 $3,307,542



(2) CASH AT BANK

2019 2018$ $

ANZ Bank cheque account 1,337 8,154

ANZ Bank deposit (on call) 5,738 1,063,386

ASB cheque account 352,516 -

ASB Bank deposit (on call) - 435

Craigs Investment Partners accountsCraigs investment Partners NZD Broker account (1,047,049) -

Craigs Investment Partners AUD call account 402,514 827,481

Craigs Investment Partners GBP call account 7,529 1,834

Craigs Investment Partners NZD call account 3,286,066 962,640

Craigs Investment Partners USD call account 1,554,294 12,052

Total Craigs Investment Partners accounts 4,203,354 1,804,007

$4,562,945 $2,875,982

The Craig’s Investment Partners accounts are held as part of the investment portfolio and are transacted through by Craig’s as part

of administering the portfolio, the current balances are disclosed as above.

(3) SHARES AND SECURITIES

2019 2018$ $

New Zealand Equities 17,979,550 16,295,215

Australian Equities 7,231,101 7,015,779

European Equities 732,195 312,351

United Kingdom Equities 597,050 998,914

United States of America Equities 8,760,577 9,029,332

Fixed Interest Securities 30,197,293 29,676,578

Property Investments 1,487,844 1,229,014

Total Investments $66,985,610 $64,557,183

Investment portfolio as at beginning of year 64,557,183 61,461,795

Maturities and realisation proceeds (21,043,667) (16,037,107)

Reinvestments (at cost) 18,558,336 15,260,070

Realised profit on disposal of investments 1,065,087 1,354,721

Realised loss on disposal of investments (827,162) (389,044)

(2,247,406) 188.640

62,309,777 61,650,435

Unrealised gain/(loss) 4,675,833 2,906,748

Total Investments $66,985,610 $64,557,183



(4) TAXATION

2019$

2018$

Taxation Reconciliation

Operating Surplus before distributions 2,228,727 2,148,531

Permanent Differences

Adjustment for tax treatment of investment income 228,327 294,812

Imputation credits received 192,620 177,944

Non deductible expenditure 237,718 147,982

Taxable income available for distribution 2,887,392 2,769,269

Income distributed as beneficiary income (2,160,692) (2,082,948)

Taxation losses utilised (56,147) (86,819)

Net taxable income $670,553 $599,502

Taxation at 33% 221,282 197,835

Imputation credits utilised (173,797) (159,415)

Taxation charge for the year $47,485 $38,420

Taxation Payable

Taxation charge for year 47,485 38,420

Taxation paid on foreign income (47,485) (38,908)

Taxation distributed to beneficiaries - 488

RWT paid 24 -

Taxation payable / (refundable) $24 -

As at 31 March 2019 unutilised imputation credits of $18,823 (2018: $18,529) were converted to a loss of $57,038 (2018: $56,147).

This loss is available to be applied against future taxable income.



(5) TRUST FUNDS

The Trust was established on 20 July 1993 with a gift of $10. In the year ended 31 March 1994 the Trust was gifted 7,623,270 shares

in Central Power Limited at a value of $8,461,830. In the year ended 31 March 1995, 205,000 shares were transferred from Central

Power Consumer Trust.

At 31 March 2000 the Trust held 11,766,170 shares in Central Power Limited. On 31 August 2000 the amalgamation between

Powerco and Central Power Limited was effected and the Trust sold their shareholding to Powerco Limited for a consideration of

$47.6 million.

On 16 June 2000 Central Power Electricity Trust entered a Memorandum of Understanding with Palmerston North City Council. The

Council settled a sum of $1.5 million on the Trust.

(6) COMMITMENTS

Scholarships

The Trust has a tertiary study scholarship scheme, whereby recipients are awarded a scholarship or tertiary study bursary for the

term of up to four years providing certain conditions are met. At 31 March 2019 the commitment to future scholarships is as follows:

2019$

2018$

2019 - 55,000

2020 53,000 29,000

2021 29,000 -

$82,000 $84,000

Grants

The Trust has agreed to make allocations from future income to approved entities subject to all relevant criteria being meet.

At 31 March 2019 future income allocations were as follows:

2019 - 361,000

2020 347,000 55,000

2021 - 2024 735,000 100,000

2025 - 2029 595,000 100,000

$1,677,000 $616,000

The Trust entered into an agreement with Palmerston North City Council (PNCC) to fund $2,200,000 to facilitate a programme to

develop the infrastructure of Arena Manawatu, which was subsequently named Central Energy Trust Arena. The commitment to

funding is over a ten year period. As at 31 March 2019 funding of $850,000 (2018: $500,000) had been identified and allocated,

payments at balance date total $300,000 (2018: $300,000).

The Trustees have agreed to make $25,000 per annum available to the Wildbase Recovery Project for payment towards operational

costs. The commitment to funding is over a ten year period. As at 31 March 2019 funding of $50,000 (2018:Nil) had been allocated.



ancial Statements

(6) COMMITMENTS (continued)

The Trustees agreed to make $30,000 per annum available towards the costs of the Manfeild NZ Grand Prix for a period of three

years. As at 31 March 2019 $60,000 of funding had been awarded (2018:$30,000) with final funding of $30,000 due in the next

financial year.

The Trust entered into an agreement with The Bio Commerce Centre Ltd to fund up to $500,000 to provide seed funding for new

business development. As at 31 March 2019 a total of $399,970 (2018:$224,970) has been paid. The remaining funds will be made

available subject to clearly identified criteria with a maximum of $200,000 being allocated in any one financial year.

(7) STATEMENT OF CONTINGENT LIABILITIES

There are no contingent liabilities in this reporting period (2018: Nil)

(8) RELATED PARTY TRANSACTIONS

The Trust maintains an interests register of all Trustees personal interest. Grants have been approved during this year for the following

entities in which one or more Trustees have an interest. The Trustees declared their involvement with the entity and did not participate

in the grant allocation process where appropriate.

2019

P T Askey Manfeild Park Trust

Palmerston North City Council

Ruahine Kindergarten Association

Tararua District Council

The Bio Commerce Centre Ltd

R M Karaitiana The Bio Commerce Centre Ltd

(via Manawatu Bio Commerce Trust)

Crossroads Church (PN) Trust

Te Aroha Noa Community Services

R J Wong Massey University

Wildbase Recovery Centre

Rotary District 9940

M Georgel Palmerston North Theatre Trust

Arohanui Hospice Service Trust

The Bio Commerce Centre Ltd

M J Kouvelis Manfeild Park Trust



(8) RELATED PARTY TRANSACTIONS (continued)

G M C May Ross Intermediate School

St Josephs School

Globe Theatre Trust

R J Titcombe Manfeild Park Trust

2018

P T Askey The Rugby Museum of NZ

Manfeild Park Trust

R M Karaitiana The Bio Commerce Centre

(via Manawatu Bio Commerce Trust)

R J Wong NZ Chinese Association

Eden Kindergarten

Awapuni Rotary

R J Titcombe Winchester School

Rotary Club of Makino

Beef Expo

Manfeild Park Trust

G M C May Ross Intermediate



(9) MANAWATU HEALTHY HOMES LIMITED

Central Energy Trust owns 100% of the shares.

Manawatu Healthy Homes Limited was formed purposely for the distribution of funds to the Manawatu Healthy Homes Project.

The Manawatu Healthy Homes Limited accounts have not been consolidated as they have no material effect. As at 31 March 2019

the Company was designated non active and all Healthy Homes funding was funded directly by Central Energy Trust.

2019$

2018$

Interest received - -

Net profit/(loss) - -

Retained Earnings at beginning of the year 435 435

Current year profit/(loss) - -

Retained earnings end of the year 435 435

Represented by:

ANZ Bank cheque account 435 435


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