3. The general manager has certified that, to the best of his knowledge and belief, all requirements of the Trustee Savings Bank Act 1948, and regulations thereunder have been complied with.

In my opinion, the above balance sheet and profit and loss account are properly drawn up so as to give respectively a true and fair view of the state of the bank's affairs as at 31 March 1970, and of the results of its business for the year ended on that date.

J. L. GREGORY, F.C.A., Auditor.

13 May 1970.

NOTES TO THE ACCOUNTS

NOTE 1. Government Stock—It is the bank’s policy to amortise the discounts and premiums on Government stock securities over the term of the investment on a straight-line basis, and to show the value of the stock in the balance sheet at cost price plus amortised discount to date. In accordance with the policy the sum of $3,117 has been transferred to the profit and loss appropriation account for this financial year.

8776

TARANAKI SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1970
1969 1970
$
Depositors' balances—
$ $
16,336,853 Ordinary accounts 17,220,195
528,255 Thrift club 614,418
316,729 Home lay-by 336,002
35,529 Christmas club 45,710
6,951,914 Investment accounts 7,800,294

24,169,280 Total liability to depositors 26,016,619
383,507 National savings accounts 279,347
Add interest suspense account 6,649
7,024
285,996
390,531 Other liabilities—
178,938 Interest accrued on investment accounts 200,554
2,132 Sundry creditors 4,062
Remittances in transit 2,414
181,070 Total other liabilities 207,030

30,000 Provision for donations 40,000
215,604 Provision for taxation 223,819
1,373,886 Reserve fund 1,446,325
$26,360,371 $28,219,789

1969 1970
$ Current assets—
$ $
543,895 Cash in hand and at bankers 666,769
755,000 Fixed deposits 755,000
250,000 Short term investments 450,000
239,279 Interest accrued on investments 259,663
5,818 Sundry debtors 10,294
383 Remittances in transit 642
1,794,375 Total current assets 2,142,368

Investments—
15,342,030 New Zealand Government stock 16,099,030
138,757 Local authority securities 126,865
8,131,735 Mortgages 9,005,176
23,612,522 Total ordinary investments 25,231,071
National savings securities—
380,000 New Zealand Government stock 280,000
10,531 Cash on hand and at bank 5,996
390,531 Total national savings securities 285,996
Fixed assets (at cost less depreciation)
468,659 Land and buildings 475,332
94,284 Vehicles, office equipment, furniture, etc. 85,022
562,943 Total fixed assets 560,354
$26,360,371 $28,219,789

BALANCE SHEET AS AT 31 MARCH 1970—continued
1969 $ 1970 $

Contingent liability—
Subsidy on home lay-by accounts, new building and alterations .. $24,900

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1970
1969 1970
$ $ Interest to depositors—
455,212 On open accounts . . . . . 475,372
149,943 Closed accounts and matured investment accounts . . . . 151,779
178,938 Accrued on investment accounts . . 200,554
535 Home lay-by accounts—
Suspensory free deposits . . . 100
784,628
193,267 Administrative expenses . . . . 246,677
3,235 Trustees honoraria . . . . 3,162
25,540 Depreciation . . . . 29,557
112,200 Provision for taxation . . . . 114,000
114,919 Net profit . . . . 114,678
$1,233,789 $1,335,879

1969 1970
$ Interest on investments—
756,986 From New Zealand Government stock 801,702
5,775 From local authorities stock 5,231
399,421 From mortgages . . . 442,111
44,419 From other sources 56,884

1,206,601 Income from other sources . . . . 29,951

$1,233,789 $1,335,879

APPROPRIATION ACCOUNT FOR THE YEAR ENDED 31 MARCH 1970
1969 $ 1970 $
30,000 Provision for donations . . . . 40,000
Buildings demolished . . . . 2,659
90,161 Reserve account . . . . 72,439
$120,161 $115,098

1969 $ 1970 $
5,242 Donation reserve balance . . . . 420
114,919 Net profit . . . . 114,678
$120,161 $115,098

DETAILED PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1970
1969 $ 1970 $

455,211.41 Interest to depositors on open accounts . . . . . . . . 475,371.98
149,943.22 Closed accounts and matured investment accounts . . . . 151,779.68
178,938.41 Accrued on investment accounts . . . . 200,553.70
535.00 Home lay-by accounts—
Suspensory free deposits . . . . 100.00
784,628.04 Administration expenses—
124,982.18 Salaries and wages . . . . 155,200.57
3,235.00 Trustees fees . . . . 3,161.50
20,628.57 Printing, advertising, and stationery . . . . 25,550.25
6,054.73 Rates and insurance premiums . . . . 7,617.86
140.28 Share of earthquake premiums of properties mortgaged to the bank . . . . . . . . . . 179.71
660.48 Trustees travelling and inspection fees . . . . . 739.45
7,852.74 Staff provident fund contributions . . . . 9,639.85
2,637.92 Rent branch premises . . . . 3,074.94
2,994.13 Lighting and heating. . . . 3,317.78