5.2: Provincial patriotic councils

Introduction

5.201
The purpose of this article is to provide an update on the financial performance of provincial patriotic councils since we last reported on the sector in the year 2000.3 5.202 Under section 40 of the Patriotic and Canteen Funds Act 1947 (the Act) and section 15 of the Public Audit Act 2001, the Auditor-General is the auditor of 15 statutory bodies. They are:

• the Patriotic and Canteen Funds Board (the Board); and
• 14 provincial patriotic councils.

5.203
The Act provides for the administration and control of money raised for patriotic purposes, and of the accumulated profits and surplus property of the former Canteen Board. The function of the Board and the provincial patriotic councils (within their districts) is to administer funds in accordance with the Act for the relief, assistance, and support of discharged servicemen and their dependants.

The Patriotic and Canteen Funds Board

5.204
Until 2002, the Board’s main activity was the administration of 4 war veterans’ homes. In that year, the Board decided that each home stood a better chance of financial survival if its governance was localised and community support and responsibility encouraged. To this end, the Board agreed to devolve the administration of the homes to 4 separate trusts.

5.205
By the end of November 2002, the transfer of assets and liabilities to each of 3 trusts was completed, and 3 of the homes were operating under new administration. The trust arrangement for the Levin Home for War Veterans did not proceed and it was sold to Presbyterian Support Central, a charitable trust set up under the Charitable Trust Act 1957. The Board retained residual funds only to cover remaining administrative expenses.

5.206
The 3 homes are now administered as follows:

• Ranfurly Home in Auckland, administered by the Ranfurly Trust;
• Rannerdale Home in Christchurch, administered by the Rannerdale Trust; and
• Montecillo Home in Dunedin, administered by the Montecillo Trust.

5.207
The Patriotic and Canteen Funds Amendment Act 2005 that came into force on 17 May disestablished the Patriotic and Canteen Funds Board by repealing all references to it in the 1947 Act and making consequential changes to other Acts.

Provincial patriotic councils

5.208
The main source of income for provincial patriotic councils is interest on investments, which is used for purposes associated with the welfare of returned servicemen. Examples of this type of assistance include:

• grants to organisations to fund home deliveries, or assist with the maintenance of veterans’ homes and gardens;
• payments towards the cost of mobility equipment and care; and
• grants toward the cost of refurbishing veterans’ accommodation in rest homes.

5.209
Our 2000 report noted that any council intending to cease operations would continue to formally exist until wound up by statute.

5.210
Since that report, the following councils have ceased to operate:

• The Auckland Provincial Patriotic Council agreed sometime in late-1999/ early-2000 to wind up its activities. A final audit was undertaken for the 6-year period ended 30 September 1999. It was resolved that the balance of the funds held by the council be transferred to the Ranfurly Trust.
• The Waikato Provincial Patriotic Council agreed in July 1999 to wind up its activities. A final audit was undertaken for the year ended 30 September 1999. It was resolved that the balance of funds held by the council be transferred to the Hamilton RSA Veterans Home Trust.
• The Hawke’s Bay Provincial Patriotic Council agreed in November 2000 to wind up its activities. A final audit was undertaken for the year ended 30 September 2000. It was resolved that the balance of funds held by the council be transferred to the Levin Home for War Veterans.

Overview of financial performance

5.211
The information in this overview is based on figures extracted from the 30 September 2003 annual report of each council.

Conclusion

5.212
Some of the 11 remaining provincial patriotic councils will want to continue their operations in support of returned servicemen. However, given the level of equity and operations shown in our table, others will prefer to wind up, and a number have indicated that they would like to do so. Veterans’ Affairs New Zealand (a semi-autonomous body within the New Zealand Defence Force) is working with these councils to establish an appropriate organisational structure for the future.

3: Our Second Report for 2000, parliamentary paper B.29[00b], pages 117-119, reported on the financial performance of provincial patriotic councils for the 1998-99 year.

4: This table does not include Auckland, Waikato and Hawke’s Bay provincial patriotic councils (see paragraph 5.210).

5: We last reported on the financial performance of provincial patriotic councils for the 1998-99 year.

6: The Wellington council figures are for the 2003 year, but are unaudited.

7: The Otago Provincial Patriotic Council has been inactive since 1994, but financial statements continue to be prepared and audited.

8: These figures reflect the fact that, during the 2002-03 year, the Board assigned the homes under its administration to 3 trusts and sold the remaining home.