3116
THE NEW ZEALAND GAZETTE
No. 150

STATEMENT OF CHANGES IN FINANCIAL POSITION FOR THE YEAR
ENDED 31 MARCH 1983

Funds were received from—
$ 1983
$ 1982
Net profit for year
769,405
673,914
Adjustments for items not involving
movement of funds—
Depreciation
174,694
117,992
Other
(1,371)
(20,846)
173,323
117,146
Increase in depositors’ funds
942,728
791,060
Investment repayments—
20,059,633
20,343,598
Government securities
3,683,637
2,806,010
Local authority securities
693,320
476,166
Mortgages
9,466,988
14,572,079
Personal loans
2,116,211
2,112,036
15,960,156
19,966,288
Decreased investment associate company
14,758
51
Increase in term liabilities
—
200,600
Deferred taxation
78,823
(17,882)
Decrease in working capital
—
1,712,316
$37,056,098
$42,995,451

These funds were applied to—
Government securities
10,125,408
10,379,397
Local authority securities
158,065
585,000
Mortgages
13,457,750
26,819,048
Personal loans
2,449,730
3,004,190
Other lending (net)
1,747,034
2,001,916
27,937,987
42,689,551
Donations
70,000
50,000
Reduction in term liabilities
208,000
8,000
Net capital expenditure
453,214
247,900
Increase in working capital
8,384,897
—
$37,056,098
$42,995,451

Working capital increases (decreases)—
Cash resources
8,629,336
(1,161,693)
Sundry debtors
298,309
8,861
Interest accrued on investments
204,832
218,902
Current mortgage liabilities
—
51,791
Taxation
80,836
(79,749)
Sundry creditors
(292,950)
(85,972)
Interest accrued on depositors accounts
(335,466)
(664,476)
$8,384,897
$1,712,316

NOTES TO THE ACCOUNTS

A. Statement of Accounting Policies—The general accounting
principles recommended by the New Zealand Society of Accountants
for the measurement and reporting of results on an historical cost
basis, consistent with previous years, have been used in the
preparation of the financial accounts.

The following particular principles have been applied:

Note 1: Depreciation—Straight-line depreciation has been applied
to the Bank’s EDP equipment to write it off over the period of its
expected useful life. All other assets have been depreciated at the
rates allowable by the Inland Revenue Department. The difference
between these rates, and the straight-line method, is not considered
to be material.

Note 2: Government Stock—It has been the Bank’s policy to
amortise total 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 its cost
price adjusted by amortised discount or premium to date.

Note 3: Personal Loans—The Bank’s policy is to add total interest
due to the loan when advanced, and interest is brought into revenue
on the basis of the “Rule of 78”.

Note 4: Taxation—
(a) The provision for income tax charged in the profit and loss
account is the calculated tax liability in respect of the
accounting profit after adjusting for permanent differences.
(b) The provision for deferred taxation arises from items of income
and expenditure being included in taxation calculations in
periods different from those in which they are dealt with
in the financial accounts.

B. Associate Company—The Bank’s investment in Northern
Trustee Computerbank Ltd. has been shown in the accounts
according to the standard accounting practice adopted by the New
Zealand Society of Accountants for an associate company.

The investment is made up as follows—
$
$
Debentures
3,000
Paid up shares
80,000
Share of accumulated profit brought forward
89,193
74,172
Less prior period deferred tax adjustment
15,021
Plus share of profit for year
1,780
Less share of provision for taxation
1,517
263
Investment as per balance sheet
$187,435

C. Fixed Assets—

1983
1982
Accumu-
lated
Deprecia-
tion
$
Book
Value
$
Cost
$
Accumu-
lated
Deprecia-
tion
$
Book
Value
$
Land
77,082
—
77,082
68,982
—
68,982
Buildings
601,670
43,752
557,918
523,876
17,166
486,650
Furniture, fittings
and alterations
805,850
440,348
365,302
661,632
374,264
287,358
Office and computer
equipment
638,982
342,624
296,358
516,410
258,378
258,032
Motor vehicles
99,472
20,715
78,757
57,376
16,050
41,326
Capital work in
progress
56,922
—
56,922
—
—
—
$2,202,896
$847,639
$1,355,257
$1,739,224
$683,838
$1,073,366

The latest Government Valuations of Land and Buildings, plus
subsequent additions at cost, amount to $714,530.

D. New Zealand Government Stock—

1983
$
1982
$
Nominal value
49,373,591
42,698,183
Book value
49,179,984
42,738,213
Market value
43,916,799
38,716,590

New Zealand Government stocks are normally held to maturity
date when the nominal value will be realised. Due provision is made,
as per Note 2, to account for the differences between book and
nominal value.

E. Term Investment Deposits—Maturities—

1983
$
1982
$
Up to and including one year
69,303,127
47,863,107
One to 2 years
3,916,732
7,903,455
Two to 3 years
2,497,383
5,001,998
Greater than 3 years
9,341,840
7,227,750
$85,059,082
$67,996,310

F. Commitments

Mortgages
1983
$
1982
$
Mortgages approved but not advanced
as at 31 March
1,304,077
2,201,125

Capital
Capital commitments in respect of
plant, land and buildings as at 31
March
198,800
45,500

AUDITORS’ REPORT

We report that we have examined the balance sheet of the Bay of
Plenty Savings Bank as at 31 March 1983 and the profit and loss
account for the year ended on that date, and have received all the
information and explanations we have required.

In our opinion, the accompanying balance sheet and profit and
loss account present fairly the financial position of the Bank as at
31 March 1983 and the results of the operations for the year ended
on that date, and were in general conformity with generally accepted
accounting principles applied on a basis consistent with that of the
preceding year.

We have also examined the statement of changes in financial
position statement which, in our opinion, gives a true and fair view
of the changes in financial position of the Bank for the year ended
31 March 1983.

Dated at Tauranga, May 1983.

GILFILLAN MORRIS & CO., Chartered Accountants.

EASTERN AND CENTRAL SAVINGS BANK
BALANCE SHEET AS AT 31 MARCH 1983

Assets—
1983
$
1982
$
Current Assets—
Cash resources
15,639,002
8,288,989
Interest accrued on
investments
1,363,940
1,501,051
Sundry debtors
527,079
695,571
Stationery stock on hand
140,843
116,790
Prepayments
134,282
129,351
17,805,146
10,731,752