29 JULY THE NEW ZEALAND GAZETTE 1785

Fixed assets—

Pre-payment—

Computer equipment .. .. .. .. .. .. $396,948,578

Note: Capital Commitment—Buildings $2,275,000

A. L. JENKIN, President.
D. F. STEPHENS, General Manager.

We, the undersigned, being the auditors of the Auckland Savings Bank, appointed in terms of section 29 (3) of the Trustee Savings Banks Act 1948, report:

(1) We have examined the books, accounts, and vouchers of the bank and have received all the information and explanations we have required.

(2) We have verified the cash, investments, securities, and assets of the bank as at 31 March 1976.

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

(4) In our 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 Auckland Savings Bank’s affairs as at 31 March 1976 and of the results of its business for the year ended on that date.

D. C. O’HALLORAN, B.COM., F.C.A., Auditor.
A. J. POSTLES, A.C.A., Auditor.

1501

BAY OF PLENTY SAVINGS BANK
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 1976

Interest on investments—

From New Zealand Government stock.. 1,021,142
From local authorities stock .. 74,764
From mortgages .. 1,169,841
From other sources .. 227,474

Income from other sources .. 100,249

$2,593,470

APPROPRIATION ACCOUNT

| Provision for donations | .. | $ 3,500 |
| Share of Loss—Northern Trustee Computerbank Ltd. | .. | 1,176 |
| Transfer to reserve | .. | 34,122 |
| | | $38,798 |

Net profit—brought down .. .. .. .. $38,798

BALANCE SHEET AS AT 31 MARCH 1976

Other liabilities—

| Interest accrued on investment accounts | .. | 308,585 |
| Mortgages | .. | 89,600 |
| Owing to other trustee banks | .. | 51,930 |
| Sundry creditors | .. | 50,558 |
| Remittances in transit | .. | 131,291 |
| | | 631,964 |
| Provision for donations | .. | 3,500 |
| Provision for taxation | .. | 202,008 |
| Reserve fund | .. | 553,447 |
| | | $42,816,676 |

Current assets—

| Cash on hand and at bank | .. | 1,321,985 |
| Fixed deposits | .. | 950,000 |
| Short term investments | .. | 800,000 |
| Interest accrued on investments | .. | 587,215 |
| Owing by other trustee banks | .. | 10,123 |
| Prepayments | .. | 2,916 |
| Sundry debtors | .. | 4,000 |
| Leasehold property suspense—leased computer equipment | .. | 11,184 |
| | | 3,700,983 |

Investments—

| New Zealand Government stock (note 1) | .. | 19,163,705 |
| Local authority securities (note 2) | .. | 944,984 |
| Mortgages | .. | 18,061,565 |
| Personal loans | .. | 378,937 |
| Debentures—Northern Trustee Computerbank Ltd. (note 3) | .. | 33,000 |
| Shares—Medical Data Processing Ltd. (note 4) | .. | 10,000 |
| Shares—Northern Trustee Computerbank Ltd. (note 4) | .. | 78,824 |
| | | 38,671,015 |

Fixed assets—

Total fixed assets: $42,816,676

NOTES TO THE ACCOUNTS

1. Government Stock—It has been the bank’s policy to amortise 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 this policy the sum of $404 has been credited to the profit and loss account for this financial year. This amount relates to stocks held at 31 March 1975.

Following a ruling from the Inland Revenue Department, the cost price of stocks, purchased since 1 April 1975, at a discount or premium, is the price paid for the stock, and no deduction from interest receivable is allowed for the interest content of the purchase. The bank has decided to make provision over the term of the stock for losses or gains on maturity. In accordance with this policy the sum of $3,473 has been debited to the profit and loss account for this financial year.

The nominal value of the bank’s Government stock holding is $19,219,040.

2. Local Authority Securities—Securities totalling $182,000 were sold during the year at book value, and invested in special mortgages in accordance with a contract, to produce a higher income. Further securities, totalling $234,000, were sold on a temporary basis with a contract to repurchase in August 1976.