For transparency, the Trustees of CCT wish to acknowledge and disclose the potential for conflict which arises in three areas:

1.       Funding: There is potential for perceived conflict in the “money go round” nature of the trust funding and expenses. RCT contributes funds to CCT through its customer levy and then CCT pays RCT for work carried out to support the objects of the Trust.

The Trustees have in place clear processes for both revenue collection and cost management as described above. Careful management of these processes as arm’s length transactions mitigates the conflict risk. It should be noted that the Trust operates separate bank accounts; invoices are signed off by Trustees each month before payment and there is no intermingling of funds between the two entities.

Accounts are not currently audited but can be if funders require external checks.

2.       Role Conflict:  CCT Trustees are also Directors of RCT; and RCT management manage the day-to-day operations of CCT. This arrangement has been adopted because it is considered the most pragmatic solution given the small scale of trust activities and the single source of funding to date. Employing external resources would add significant cost to Trust operations, resulting in the limited funding being spent on administration and management, rather than direct conservation related activity.

3.       Brand Leverage: It is acknowledged that RCT, as a business, leverages the work of CCT. RCT promotes the CCT conservation project it is associated with, as part of its brand story to the market. The Trustees are comfortable with this leverage for two reasons:

a.        The Trustees consider that the more RCT continues to derive a benefit from this association, the more likely it will wish to continue to support CCT and its activities. It regards the relationship as a win-win partnership.

The Trustees also acknowledge that it is normal practice for a sponsor to wish to seek brand leverage by association. They are comfortable with RCT doing this and will be comfortable if sponsors wish to do this.

b.        CCT ‘s objects require it to educate the public in the benefits of conservation and facilitate access to Dansey Road Scenic Reserve. This means RCT’s business operations involving the public in Dansey Road Scenic Reserve, and promotion of the conservation project to its customers, enables CCT to meet its objects at no cost to CCT. Furthermore, RCT actively seeks out opportunities to further leverage its relationship with its customers to generate additional funding for CCT.