2010 Annual Report
On behalf of the Trustees of South Link Education Trust I am pleased to report that we have had a relatively smooth year with our investments. Our funds have maintained their value.
This year we have distributed $437,849 to the benefit of General Practice.
At 30th June 2010 our total capital had risen to $11,463,913.
Distributions as usual have been shared between organisations which advocate, educate and innovate within General Practice.
Specifically we have supported South Link Health Inc with funding for the annual conference plus assisting with smoothing the changes in the South Islands PHO environment. We have commissioned a report on ownership of general practice in the South Island and continued our commitment to medical students especially their leadership conference.
Our capital management has continued to run smoothly with Ross Fowler assisting us overseeing our funds. Our ‘Investment Policy Statement’ is reviewed and was adjusted slightly to take into account the changes in international finance; we continued to increase the amount we have allocated to international shares. I believe we have been able to select a mix of investments that are appropriate for our trust.
The mix continues to be balanced between cash and bonds in New Zealand, overseas bonds and shares both in NZ and overseas. These investments are all managed by professional organisations and Ross is assisting us to monitor returns received and fees incurred.
I am pleased to report that the trustees (Murray Tilyard, Dean Millar-Coote and myself) have an excellent working relationship and decisions have all been by consensus. We enjoy our role and have all learnt a great deal by being responsible for other people’s money.
As you know we have a policy of maintaining our capital at the inflation adjusted level of $10M at the inception of our trust. This limits distributions. I would welcome discussion as to whether we should intentionally run our fund down over one or two decades so as to allow more significant distributions in the working and retirement lives of the doctors who saved this money.
Stephen Brown
Chairman
Board of Trustees
South Link Educational Trust
Summary of Financial Performance for the 12 months ended 30th June 2010
| Income | 2010 | 2009 | |
| Investment Income | 738,194 | 123,024 | |
| Total Income | 738,194 | 123,024 | |
| Operating Expenses | |||
| Audit Fees | 2,900 | 3,150 | |
| Legal Fees | 2,293 | - | |
| Insurance | 2,925 | - | |
| Trustee Fees and expenses | 24,641 | 16,622 | |
| Consultancy | 22,750 | 17,589 | |
| 10,000 | 10,000 | ||
| Total Costs | 65,509 | 47,361 | |
| Surplus prior to distributions | 672,685 | 75,663 | |
| Distributions | |||
| Conference Costs | 192,600 | 189,544 | |
| General Expenses | 2,749 | 145 | |
| Locality Meetings | - | 112,000 | |
| Matagouri Club | 2,500 | 4,120 | |
| Primary Care Network | 180,000 | - | |
| Practice Purchase Options | 30,000 | - | |
| Sponsorship | 30,000 | 37,000 | |
| GP Research for General Practice | - | 63,304 | |
| Medical Student Sponsorship | 37,000 | 36,500 | |
| Total Distributions | 437,849 | 406,113 | |
| Net surplus (deficit) for year | (234,836) | (330,450) |
South Link Educational Trust
Summary of Financial Position as at 30th June 2010
| ACCUMULated funds | 2010 | 2009 | |
| Opening Accumulated Funds | 11,229,07 | 11,559,527 | |
| Add Surplus/(Deficit) for year | 234,836 | (330,450) | |
| Total Accumulated Funds | 11,463,913 | 11,229,077 | |
| Represented by: | |||
| Current Assets | |||
| ASB Bank | 295,296 | 49,638 | |
| GST Receivable | 15,276 | 23,122 | |
| Total Current Assets | 310,572 | 72,760 | |
| Investments | |||
| Managed Funds | 11,175,715 | 11,258,768 | |
| Total Assets | 11,486,287 | 11,331,528 | |
| Less Current Liabilities | |||
| Accounts Payable | 22,374 | 102,451 | |
| Net ASSETS | 11,463,913 | 11,229,077 |
The above financial summaries have been extracted from the South Link Education Trust’s full financial audited accounts. If you would like to receive a copy of the full accounts, audited by WHK, please contact Dianne Railton at South Link Health.
