3818
THE NEW ZEALAND GAZETTE
No. 136

BALANCE SHEET AS AT 31 MARCH 1982

Liabilities

Deposits in cheque accounts, savings accounts,
payment service—
Accounts, term investments, home and
farm ownership accounts, etc. .. 178,309 141,258
Creditors .. .. .. 644 728
Provisions .. .. .. 1,614 427
Reserves .. .. .. 4,112 3,024
$184,679 $145,437

Investments

Cash in hand and on deposit .. .. 15,268 19,437
Debtors .. .. .. 1,344 1,130
New Zealand Government securities .. 64,237 50,440
Local authority securities .. .. 917 1,225
Mortgages .. .. .. 86,115 64,297
Personal loans, overdrafts and visa advances 12,432 4,663
Associated company .. .. .. 202 202
Fixed assets .. .. .. 4,164 4,043
$184,679 $145,437

N. J. CLARKE, President.
S. R. McROBIE, General Manager.

CASH FLOW STATEMENT FOR YEAR ENDED 31 MARCH 1982

Source of Funds

Deposit increases .. .. .. .. 34,254 27,594
Repayments—
Mortgages .. .. .. .. 10,942 9,625
Personal loans .. .. .. .. 4,716 2,673
Local authority securities .. .. 124 437
Short term deposits, etc. .. .. 4,089

Sales—
Local authority securities .. .. 635 1,018
New Zealand Government stock .. 1,332 2,494
Fixed assets .. .. .. .. 35 57
Net profit after taxation .. .. 1,064 923
Non-cash adjustments depreciation, etc. .. 4,057 622
$61,248 $45,443

Investment of Funds

Mortgage advances .. .. .. .. 32,775 15,045
New Zealand Government stock .. 14,989 11,197
Local authority securities .. .. 460 564
Personal loans, overdrafts and visa advances 12,537 6,037
Fixed assets .. .. .. .. 487 1,031
Short-term deposits, etc. .. .. .. 11,549
$61,248 $45,443

AUDITOR’S REPORT TO THE TRUSTEES OF THE WAIKATO SAVINGS BANK

We have obtained all the information and explanations that we have required. In our opinion proper accounting records have been kept by the Bank so far as appears from our examination of these records.

In our opinion the accompanying cash flow statement, profit statement and balance sheet together with the notes thereto give, using the historical cost method, a true and fair view of the changes in the financial position and the results of the business of the bank for the year ended 31 March 1982 and the financial position as at that date.

HUTCHISON HULL AND CO., Chartered Accountants.
Hamilton, 17 May 1982.

NOTES

1. Statement of Accounting Policies—
   The general accounting principles as recommended by the New Zealand Society of Accountants for the measurement and reporting of profit and financial position on an historical cost basis have been followed by the Bank. The following particular accounting principles which materially affect the measurement and reporting of profit and financial position have been applied.

(A) Revenue and Expense Recognition—
(a) Personal Loan interest has been recognised on the sum of digits basis.
(b) Losses associated with dealings in securities have been deferred on a pro rata basis to the years during which the revenue from the corresponding deals will be recognised during the normal course of business.
(c) The charge for income tax is the amount of tax liability in respect of the accounting profit for the current year. Timing differences between accounting and taxation records are included under the heading “Provision for Deferred Taxation”, with the exception of differences which, on the basis of reasonable probability, are expected to continue in the future.

(B) Investments—
(a) The Bank’s one quarter shareholding in the Northern Trustee Computerbank Ltd., as at the company’s 31 May 1981 balance date has been treated on an equity accounting basis.
(b) New Zealand Government securities have been valued on a purchase yield basis.
(c) Other investments have been recorded at cost plus interest accrued to balance date less provision for doubtful debts.

(C) Fixed Assets and Depreciation—
Land is recorded at the higher of original cost or the 1976 Government Valuation. All other assets are recorded at cost less depreciation to date. The cost of lease goodwill has been spread evenly over the terms of the leases. Straight-line depreciation as recommended by the New Zealand Society of Accountants Statement of Standard Accounting Practice No. 3 has not otherwise been applied and maximum rates of depreciation as approved by the Commissioner of Inland Revenue have been used. This is not considered to have a significant effect on the financial statements for the year ended 31 March 1982.

(D) Changes—
There have been no changes in accounting principles used that would significantly affect profit or financial position.

2. Total Income—

Government and local authority securities .. 5,781 4,326
Mortgages, personal loans, etc. .. 14,262 7,639
Associated company .. .. 5 8
Other income .. .. 493 2,215
$20,541 $14,388

3. Expenses—

Audit fee .. .. .. 20 15
Depreciation .. .. .. 355 381
Rentals .. .. .. 173 160
Hire purchase interest .. .. 7 20
Deposit interest .. .. 12,407 8,591
Trustees fees .. .. 18 15
Doubtful debts .. .. 68 10
Other expenses .. .. 5,254 4,240
$18,302 $13,432

4. Loss on Trading Securities—

Amortisation of loss on trading Government stock .. (75) (75)
Other trading profits .. 26 20
$(49) $(55)

5. Reserve Fund Changes—

Capital profit on sale of assets .. 10 ..