BALANCE SHEET AS AT 31 MARCH 1974—continued

1973 $ 1974 $
Fixed assets at cost less depre-
ciation: (see Notes 3 and 4)
348,209 Land and buildings .. 311,448
32,338 Leasehold improvements .. 35,904
48,145 Furniture and fittings .. 45,159
25,152 Office machinery .. 20,994
6,928 Security equipment .. 42,568
8,946 Motor vehicles .. .. 11,328
4,437 Medal and coin collection 5,182
5,400 Goodwill .. .. 4,050

479,555
$36,244,237

NOTE 1—NEW ZEALAND GOVERNMENT STOCK AND LOCAL AUTHORITY STOCK

It is the bank's policy to amortize the discounts, premiums and variations in exchange rates on Government stock and local authority securities over the term of the investment on a straight-line basis and to show the value of the securities in the balance sheet at cost price and adjusted by the amortized amounts to date. In accordance with this policy a net sum of $21,790 has been debited to the revenue account for this financial year.

NOTE 2—MORTGAGES

Mortgages approved but not yet uplifted total $1,159,080.

NOTE 3—FIXED ASSETS

Cost price $634,217
Depreciation to date $157,584
Book value $476,633

NOTE 4—CONTINGENT LIABILITY
Napier premises development $100,000

A. G. McHUGH, President.
E. ROBERTSON, General Manager.

AUDITORS' REPORT

We have examined the balance sheet of the Eastern and Central Savings Bank as at 31 March 1974, and the related revenue account for the year then ended. Our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the accompanying balance sheet with notes attached and revenue account present fairly the financial position of the Eastern and Central Savings Bank at 31 March 1974, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on the basis consistent with that of the preceding year.

BROWN, WEBB AND CO., Chartered Accountants.
Hastings, 10 May 1974.

OTAGO SAVINGS BANK

PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1974
Interest to depositors--
On open accounts .. .. .. .. 991,941
Closed accounts and matured investment accounts 184,102
Accrued on investment accounts .. .. 409,904
Home layby accounts—suspensory free deposits .. 1,218

1,587,165
Administrative expenses .. .. .. .. 928,258
Trustees’ honoraria .. .. .. .. 4,566
Depreciation—
Buildings .. .. .. .. 33,108
Vehicles, equipment, furniture, etc. 29,354

62,462
Provision for taxation .. .. .. .. 202,930
Net profit—carried down .. .. .. .. 324,922

$3,110,303

Interest on investments—
From New Zealand Government stock .. .. 1,428,299
From local authorities stock and debentures 107,323
From mortgages .. .. .. .. 1,351,690
From other sources .. .. .. .. 77,039
Income from other sources .. .. .. .. 145,952

$3,110,303

PROFIT AND LOSS APPROPRIATION ACCOUNT

$
Provision for donations .. .. .. .. .. 60,000
Transfer to reserve .. .. .. .. .. 264,922

$324,922

Net profit—brought down .. .. .. .. .. 324,922

$324,922

BALANCE SHEET AS AT 31 MARCH 1974

Depositors' accounts—
$
Ordinary accounts .. .. .. .. .. 36,629,455
Thrift club accounts .. .. .. .. .. 1,011,830
Special purpose accounts .. .. .. .. 4,270,274
Home layby accounts .. .. .. .. .. 186,105
Home ownership accounts .. .. .. .. 68,331

42,165,995
Investment accounts .. .. .. .. .. 10,992,689

Total liability to depositors .. .. .. .. 53,158,684
National savings accounts .. .. .. .. 353,113
Add interest suspense account .. .. .. .. 6,267

359,380

Other liabilities—
Interest accrued on investment accounts 409,904
Owing to other trustee savings banks .. 45,349
Staff provident fund .. .. .. .. .. 333,919
Sundry creditors .. .. .. .. .. 8,727

Total other liabilities .. .. .. .. .. 797,899
Provision for donations .. .. .. .. .. 60,000
Provision for taxation .. .. .. .. .. 359,656
Reserve fund .. .. .. .. .. 2,466,000

$57,201,619

Current assets—
$
Cash on hand and at bank .. .. .. .. 727,974
Fixed deposits .. .. .. .. .. 1,620,000
Interest accrued on investments .. .. .. 652,205
Owing by other trustee savings banks .. 48,473
Sundry debtors .. .. .. .. .. 9,837

Total current assets .. .. .. .. .. 3,058,489

Investments—
New Zealand Government stock at face value (See note (i) below) .. .. 27,234,087
Local authority securities at cost .. .. 1,925,313
Mortgages .. .. .. .. .. 23,095,100
Personal loans (less interest yet to mature) .. .. .. .. .. 50,816
Shares in Allied Computer Processors Ltd., at cost .. .. .. .. .. 16,000

Total ordinary investments .. .. .. .. 52,321,316

National savings securities—
New Zealand Government stock at cost 353,113
Cash on hand and at bank .. .. .. .. 6,267

Total National savings securities .. .. 359,380

Fixed assets—
$
Cost Depre- Price cation to Date Book Value
Land and buildings 1,815,722 463,623 1,352,099
Vehicles, furniture, equipment, etc. 439,366 329,031 110,335

Total fixed assets .. .. .. .. .. 1,462,434

$57,201,619

Note (i)—
New Zealand Government stock at cost price—$27,153,792.

J. G. BARNES, President.
A. L. FLEURY, General Manager.

AUDITORS' REPORT

We report that we have audited the books and accounts of the Otago Savings Bank for the year ended 31 March 1974, and have received all the information and explanations we have required.