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What is the charge to the District?

TRF
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Becky Giblin
on 14/08/20, 5:09 AM 127 views

This was advised at both the District Advisory (DG's) briefing and at the TRF admins meeting. 

For 2020-21, the annual NZRCCT fee is fixed at the same charges used by Perpetual Guardian. It will be invoiced by ROZOPS.


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Peter Garnett
On 31/08/20, 5:55 AM

I understood a prime reason fro moving away from PG was because their transaction charges had escalated too high.  Why then would RozOps be planning to charge at the same level as used by PG??

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The fees arrangement between PG and the districts has been in place for over 2 decades with no fee increase.

In that time, professional fees and labour costs have risen well above their starting point.

In addition to those base fees, PG also invoices additional costs later in the rotary year. These costs are made up of additional PG costs, accounting fees and audit fees. They invoice later in the year on the basis of their actual costs recorded.

From the analysis completed as part of the project between PG and ROZOPS, over the last 5 years, the average additional charges levied by PG were $11,000+GST per year. Some years the total annual costs were double the base fees.

PG initiated the fees review in 2018 indicating that if they were to continue in the role, they would be levying Rotary at least double - and probably nearer to $40,000+GST per annum.

For commercial trustee entities like PG, that amount remains quite reasonable. A previous review over 10 years ago of the activities of the Trust and the Trustee has been referred to during this process and the advice was that other corporate trustees were looking at a fee of over $60,000+GST at that time.

New Zealand is not unique in its Trust arrangements for collection and management of foundation donations. In Australia, there is a similar arrangement already operating – see this website here: http://www.tarft.org.au/

As part of the ongoing improvement in communication and operation, it is intended that a similar page describing the NZRCCT operations will be established on our erp server.

There is a finite cost to managing this Trust activity professionally. There remains a Trustee fee. The management agreement with ROZOPS provides the opportunity to gain some synergies and efficiencies, but it is not a zero cost. ROZOPS will be using resources that will need to be funded.

Becky Giblin
on 2/09/20, 4:34 AM

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Asked: 14/08/20, 5:09 AM
Seen: 127 times
Last updated: 2/09/20, 4:34 AM