20 JULY
THE NEW ZEALAND GAZETTE
2101

Personal loans
.. ..
622,105
546,598

Total ordinary investments
.. ..
68,636,023
58,863,084

Company shares and debentures
.. ..
113,000
113,000

Fixed assets—
Land and buildings
.. ..
1,677,292
962,558

Vehicles, equipment, furniture, etc.
.. ..
556,084
295,066

Total fixed assets
.. ..
2,233,376
1,257,624

$77,125,210
$66,028,562

Capital commitments—
Mortgages approved, but not yet advanced
.. ..
2,762,050
1,341,492

Local body loans approved but not yet advanced
.. ..
716,763
109,900

New Head Office building
.. ..

L. C. REID, President.
S. R. McROBIE, General Manager.

AUDITORS’ REPORT

The above balance sheet and attached profit and loss account are in agreement with the books which, in our opinion, have been properly kept. We have obtained all the information and explanations we required. In our opinion, according to the best of our information and the explanations given to us, the above balance sheet and profit and loss account present fairly the financial position of the Waikato Savings Bank as at 31 March 1978 in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.

HUTCHISON, HULL & CO., Chartered Accountants.

1985

OTAGO SAVINGS BANK
PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31 MARCH 1978

Interest to depositors—
On open accounts
.. ..
$1,264,048

Closed accounts, matured investment accounts and term deposits
.. ..
731,567

Accrued on investment accounts and term deposits
.. ..
1,141,302

Accrued on other depositors funds
.. ..
18,048

Home lay-by accounts—suspensory free deposits
.. ..
429

3,155,394

Administrative expenses
.. ..
2,159,816

Trustees’ honoraria
.. ..
6,588

Depreciation
.. ..
77,288

Provision for taxation
.. ..
326,303

Net profit carried down
.. ..
414,301

$6,139,690

Interest on investments—
From New Zealand Government stock
.. ..
2,131,301

From local authorities stock
.. ..
211,750

From mortgages
.. ..
2,899,929

From other sources
.. ..
710,861

Income from other sources
.. ..
185,849

$6,139,690

PROFIT AND LOSS APPROPRIATION ACCOUNT

Provision for donations
.. ..
95,000

Transfer to reserve
.. ..
319,301

$414,301

Net profit, brought down
.. ..
414,301

$414,301

OTAGO SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1978

Depositors’ accounts—
Ordinary accounts
.. ..
$44,203,013

Thrift accounts
.. ..
1,186,136

Special purpose accounts
.. ..
5,963,346

Home lay-by accounts
.. ..
71,436

Home and farm ownership accounts
.. ..
1,264,613

52,688,544

Investment accounts, term deposits, and housing bonds
.. ..
31,494,360

Total liability to depositors
.. ..
84,182,904

National savings accounts
.. ..
117,185

Add interest suspense account
.. ..
2,823
120,008

Other liabilities—
Interest accrued on investment accounts, and term deposits
.. ..
1,141,303

Interest accrued on other depositors funds
.. ..
18,048

Staff provident fund
.. ..
377,980

Sundry creditors
.. ..
149,355

Total other liabilities
.. ..
1,686,686

Provision for donations
.. ..
95,000

Provision for taxation
.. ..
524,899

Reserve fund
.. ..
3,331,416

$89,940,913

Current assets—
Cash on hand and at bank
.. ..
$638,179

Fixed deposits
.. ..
8,437,000

Interest accrued on investments
.. ..
1,213,999

Sundry debtors
.. ..
44,960

Total current assets
.. ..
10,334,138

Investments—
New Zealand Government stock at face value (see note (i) below)
.. ..
34,149,935

Local authority securities at cost
.. ..
3,765,927

Mortgages
.. ..
38,988,083

Personal loans (less interest yet to mature)
.. ..
657,043

Shares in Allied Computer Processors Limited at cost
.. ..
13,750

Total ordinary investments
.. ..
77,574,738

National savings securities—
New Zealand Government stock at cost
.. ..
117,185

Cash on hand and at bank
.. ..
2,823

Total national savings securities
.. ..
120,008

Fixed assets—
Cost
Price
Depn. to Date
Book Value

Land and buildings
2,135,530
533,860
1,601,670

Vehicles, equipment, furniture, etc.
.. ..
655,926
345,567
310,359

Total fixed assets
.. ..
1,912,029

$89,940,913

A. H. H. PEARCE, President.
A. L. FLEURY, General Manager.

Note (i)—New Zealand Government stock at cost price = $34,342,481

Notes to the Accounts

NOTE 1—ACCOUNTING POLICIES

The accounting policies which the Bank considers appropriate for the measurement of its results and financial position under the historical cost convention are as follows:

A. Recognition of income—
Income shown in the Profit and Loss Account is earned in the current year. In the case of personal loans the policy is to add interest to the advance at the commencement of the loan, and to bring this interest into revenue during the appropriate financial years in accordance with the “Rule of 78”.

B. Expenditure—

1. Interest Credited to Depositors—Interest on open accounts at the 31st March represents the interest paid for the year. Accounts which are credited with interest during the year have had an appropriate adjustment made for the interest accrued to 31 March.

2. Other Expenses—Other expenses, including expenditure on computer programme development, are charged to the accounts in the year in which the expenditure is incurred.

3. Depreciation—Fixed assets, other than freehold land, are generally depreciated on a straight line basis at rates estimated to write off the cost less residual value over the useful life of each class of asset. The principal annual rates in use are: