NB. This is archived material from Assembly 2004

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Presbyterian Savings & Development Society of New Zealand Inc.

PSDS is the major provider of loan funding for Parish projects, and works in close co-operation with the Church. It reports to Assembly but by virtue of its own legal constitution acts independently and thus its decisions are not the responsibility of the Presbyterian Church. The General Assembly nominates four members to its Board.

<typohead type="3">1.Introduction</typohead>

1.1 From small beginnings at Assembly in Timaru, PSDS has developed into a significant 34 year old organisation. The confidence of depositors in the Society continues and grows. The Society´s role in the development of the Church – especially at Parish level - increases in significance. The partnership between depositors and PSDS grows and strengthens.

<typohead type="3">2.Directors</typohead>

2.1 The Society is run by up to 15 Directors. Currently the number is 11 under the chairmanship of George Wadsworth. Monthly Directors meetings are supported by sub-committees focussed on Finance and and Promotion.

2.2New Directors appointed since last reporting to Assembly are Hamish Crooks and Margaret Slater.

<typohead type="3">3.Depositor Growth</typohead>

3.1 Increasing numbers of Parishioners see the Society as a good place to deposit their spare funds. PSDS is especially strong in depositor support from Ministers and also from senior citizens. Efforts are always ongoing to encourage younger and even smaller depositors to start and continue savings habits with PSDS. The Society is pleased to have many grandchildren as depositors. Total depositor numbers are currently 2650.

3.2 In terms of dollars, PSDS had a planned approach to reach $40 m in depositor funds this year – and achieved it with $200,000 to spare. This means an increase of $3 m since we last reported to Assembly two years ago.

3.3 Interest rates roughly equate to those of banks.

<typohead type="3">4.Loans</typohead>

4.1 Parish requests for these continue and none have been refused for lack of available funds. PSDS has also been able to continue wider assistance – to Church Schools, Camps and even to other denominational churches – Anglican, Baptist and Elim.

4.2 Interest rates continue to be below the floating rates of banks and no fees are charged.

<typohead type="3">5.Links with Parishes / Presbyteries</typohead>

5.1 PSDS has a policy of visiting each Presbytery district at least once every seven years and as many Parishes and worship services as possible. The first of these deliberate seven year cycles has just ended. Feedback on this personal communication is overwhelmingly positive.

<typohead type="3">6.Links with the Presbyterian Church</typohead>

6.1 PSDS has always seen itself as a servant organisation and works positively with the Presbyterian Assembly structure. Good communication is maintained with the Assembly office and the Assembly Moderator.

<typohead type="3">7.Financial Statements</typohead>

7.1 Attached to this report are abbreviated summaries of the PSDS audited financial statements for the June years of 2002 and 2003.

7.2 The investment arena is not an easy one in which to operate and the Society is always mindful of the need to protect depositors´ funds while at the same time growing steadily and providing an appreciated financial service to Parishes.

7.3 Since moving out of Managed Funds two years ago, the Society has produced strong financial results with the published 2003 and the unaudited 2004 accounts adding over $1.5 m to reserves. The Directors have a goal of increasing these to 10% of funds over the next few years.

<typohead type="3">8.Staff</typohead>

8.1 The Society continues to serve the whole of the country from its offices in Newmarket. After eight years, Promotions Officer, Malcolm McLeod, retired to be replaced by Paul Walker. General Manager Robin Guy is into his 17th year of service.

<typohead type="3">9.Conclusion</typohead>

9.1 PSDS is proud of its servant record, protective of its depositor trust and steadily marching on with its planned and prudent goals. It values the expertise and commitment of its Board members and is pleased to be near the forefront of the growing, developing, forward thinking edge of the Church.

<typohead type="3">10.Statement of Financial Performance for the years ended 30 June</typohead>

 

2003

2002

2001

Investment Income

 

 

 

Interest Income

2,605,903

2,113,586

2,167,195

Rental Income

349,018

410,264

419,834

Realised Gains on Disposal of Investments

94,770

(115,095)

(11,602)

Dividend Income

1,790

5,805

4,801

Unrealised Gains (Losses) on Investments

–

(70,500)

34,750

 

$3,051,481

$2,344,061

$2,614,978

Less:

 

 

 

Interest Expense on Depositors´ Funds

(2,018,737)

(2,046,453)

(2,129,662)

NET INVESTMENT INCOME

$1,032,744

$297,607

$485,316

Other Income

 

 

 

Donations and Bequests

879

10,821

2,480

Sundry Income

–

–

250

TOTAL INCOME

$1,033,622

$308,429

$488,046

Expenses

 

 

 

Property Expenses

19,989

41,293

39,774

Depreciation

15,530

15,380

19,401

Administration

272,808

238,787

232,933

Publicity and Promotion

81,025

82,779

77,671

Grants and Donations

13,500

11,000

23,000

TOTAL EXPENSES

$402,851

$389,238

$392,778

Abnormals

 

 

 

Movement in Investment Revaluations

335,800

12,989

–

Bad Loans Recovered (Written off)

15,926

(62,650)

–

Forgiveness of Debt due by New Vision

(47,426)

–

–

SURPLUS (DEFICIT) FOR THE YEAR

$935,071

($130,471)

$95,268

 

<typohead type="3">11.Statement of Financial Position as at 30 June</typohead>

 

2003

2002

2001

Society Funds

1,206,113

371,043

501,514

Represented by Investment Assets:

 

 

 

Church Mortgage Loans

9,450,811

5,737,116

4,161,391

Commercial Mortgage Loans

3,246,156

4,492,199

6,183,189

Investment Properties

3,019,000

3,082,500

3,997,000

Advances

–

100,000

100,000

Term and Call Deposits

6,400,000

8,975,000

4,225,000

Fixed Rate Investments

17,208,134

14,145,572

12,898,350

Managed Funds

–

470,007

4,000,000

Equity Unit Trust

–

340,000

410,500

 

$39,324,101

$37,342,394

$35,975,430

Other Current Assets

 

 

 

Bank Balances

190,875

197,651

87,911

Interest Income Receivable

249,372

302,002

343,450

Debtors

72,291

–

–

Presbyterian New Vision Foundation

–

47,426

47,426

 

$512,537

$547,079

$478,787

Fixed Assets

14,287

28,308

41,540

TOTAL ASSETS

$39,850,925

$37,917,781

$36,495,757

Liabilities

 

 

 

Depositors´ Funds

38,179,231

37,100,719

35,468,354

Accrued Interest on Depositors´ Funds

405,194

365,569

456,146

Sundry Creditors and Accruals

19,980

42,553

65,330

Rent Guarantee Deposit

37,340

37,340

–

GST

3,067

557

4,414

TOTAL LIABILITIES

$38,644,812

$37,546,738

$35,994,243

NET ASSETS

$1,206,113

$371,043

$501,514

 

 

Directors for PSDS and Trustees for Presbyterian New Vision Foundation: George Wadsworth (Chairman), Tony Caughey, Don Clark, Hamish Crooks, Bruce Duske, Ian Kendall, Rev Doug Lendrum, Rev Samuel McCay, Rev Simon McLeay, Glenn Mottram, Margaret Slater

General Manager: Robin Guy

 

<typohead type="2">Presbyterian New Vision Foundation

</typohead>

<typohead type="3">1.Chairman's Report 2003 – 2004</typohead>

1.1 The idea of giving strategic grants to individuals and Parishes was close to the heart of the late Alan Baker and launched officially in 1989. It had begun in a small way five years previously.

1.2 Its level of funds has remained fairly static at approximately $100,000 and preserving the capital means little income is left for grants. This is assisted by the injection of approximately $15,000–$20,000 per year from PSDS.

1.3 Alan Baker hoped this Fund would grow into one of significance. It hasn´t yet. If others catch the vision of Alan it might.

1.4 The work continues much as in past years. Many grants are given each year to Ministers undertaking Presbytery approved study leave. Discussions with the Presbyterian Church Mission Resource personnel have led to grants being made available to computer, sound system and data projector purchases by Parishes. This year it is planned to extend grants to Ministers to include their in-service training courses.

1.5 Like its sister organisation PSDS, the Foundation is always looking forward optimistically and making the best possible use of its resources. We go cheerfully on our way, glad to assist in the ways we do.

<typohead type="3">2.Statement of Financial Performance for the Years Ended 30 June</typohead>

 

 

 

2003

2002

2001

Income

 

 

 

Grant – Presbyterian Savings & Development Society

13,500

11,000

23,000

Gift – Presbyterian Savings & Development Society

47,426

–

–

Interest

6,605

2,247

3,430

Legacies & Donations

320

51,768

215

 

$67,851

$65,015

$26,645

Expenditure

 

 

 

Grants Paid Out

19,150

15,150

33,288

Advertising & Bank Charges

108

6

113

Audit Fee

330

330

275

 

$19,588

$15,486

$33,676

 

 

 

 

Surplus (Deficit)

$48,263

$49,529

$(7,031)

Accumulated Surplus – Opening Balance

55,265

5,736

12,767

Accumulated Surplus – Closing Balance

103,528

55,265

5,736

 

 

 

 

 

 

<typohead type="3">3.Statement of Financial Position as at 30 June</typohead>

 

 

 

2003

2002

2001

Current Assets

 

 

 

ANZ Bank Account

1,528

50,691

1,162

Deposit Account – Westpac

102,000

52,000

52,000

 

$103,528

$102,691

$53,162

Current Liabilities

 

 

 

Current Account – Presbyterian Savings & Develop Society

0

47,426

47,426

NET ASSETS

$103,528

$55,265

$5,736

 

 

 

 

George Wadsworth
Chairman

Robin Guy
General Manager